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Home My WebLink AboutAgenda Packet 2002/07/09 CITY COUNCIL AGENDA July 9, 2002 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CI'IY OF CHULA VISYA City Council City Manager Patty Davis David D. Rowlands, Jr. Stephen C. Padiila City Attorney Jerry R. Rindone John M. Kaheny Mary Salas City Clerk Shirley A. Horton, Mayor Susan Bigelow The City Council meets regularly on the first calendar Tuesday at 4:00 p.m. and on the second, third and fourth calendar Tuesdays at 6:00 p.m. Regular meetings may be viewed at 7:00 p.m. on Wednesdays on Cox Cable Channel 24 or Chula Vista Cable Channel 68 AGENDA July 9, 2002 6:00 P.M. CALL TO ORDER ROLL CALL: Councilmembers Davis, Padilla, Rindone, Salas, and Mayor Horton. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · INTRODUCTION BY LOUIE VIGNAPIANO, DIRECTOR OF MANAGEMENT AND INFORMATION SERVICES, OF THE EMPLOYEES OF THE MONTH - DEREK HATH, COMPUTER PROGRAMMER/ANALYST AND JOHN GERSTENBERG, COMPUTER PROGRAMMER/ANALYST · PRESENTATION BY TOM SCOTT, EXECUTIVE DIRECTOR, SAN DIEGO HOUSING FEDERATION, OF THE 2002 OUTSTANDING LOCAL GOVERNMENT SUPPORTER AWARD FOR OUTSTANDING ACHIEVEMENT IN AFFORDABLE HOUSING AND COMMUNITY DEVELOPMENT · PRESENTATION BY RICHARD MCGAFFIGAN - SOUTH BAY HIGH INTENSITY PREVENTION ZONE, DAVID SWIFT - HOUSE OF BLUES CONCERTS/COORS AMPHITHEATER, AND JIM ZOLL - CHULA VISTA POLICE DEPARTMENT, CONCERNING UNDER-AGED DRINKING, AND DRIVING UNDER THE INFLUENCE, ASSOCIATED WITH ATTENDANCE AT COORS AMPHITHEATER CONCERTS C01~SENT CALENDAR (Items 1 through 18) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak"form (available in the lobby) andsubmit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed afler Action Items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES of June 11, June 12, and June 18, 2002. Staffrecommendafion: Council approve the minutes. 2. WRITTEN COMMUNICATIONS Letter of resignation from David Smith, member of the Mobilehome Rent Review Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post immediately in accordance with Muddy Act requirements. 3 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALLING AND GIVING NOTICE OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2002, FOR THE PURPOSE OF FILLING THE SEAT OF MAYOR, AS REQUIRED BY THE PROVISIONS OF TI-IE CHULA VISTA CHARTER AND THE LAWS OF THE STATE OF CALIFORNIA RELATING TO THE CONDUCT OF ELECTIONS B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO MATERIALS SUBMITTED TO THE ELECTORATE AND THE COSTS THEREOF FOR THE SPECIAL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, NOVEMBER 5, 2002 C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REQUESTING THE BOARD OF SUPERVISORS TO PERMIT THE REGISTRAR OF VOTERS TO PERFORM SERVICES FOR THE CONDUCT OF THE SPECIAL MUNICIPAL ELECTION FOR THE CITY OF CHULA VISTA TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2002 The purpose of the November 5, 2002 Special Municipal Election is to select a Mayor for a full term consisting of four years, commencing December 2002. In order to conduct the election, it is necessary to give notice in accordance with election law; to adopt regulations for candidates running in the election; and to request election services from the Registrar of Voters. (City Clerk) Staffrecommendation: Council adopt the resolutions. 4 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING THE FOUR- PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS AND MOOSE, LLP (CONSULTANT), MCMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P. (APPLICANT), AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING A FOUR- PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BA_RTZ AND ASSOCIATES (CONSULTANT), MCMILLIN OTAY RANCH, LLC, AND OTAY PROJECT L.P. (APPLICANT), AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The applicant, McMillin Otay Ranch and Otay Project, L.P., as developers of Otay Ranch Village One, Village One West, Village Five, and Village Six have agreed to enter into agreements whereby the developers fund contracts to retain the finns of Remy, Thomas and Moose, to provide legal services related to land use issues; and Linda Bartz and Associates, to provide legal services related to eminent domain and condemnation actions. (Director of Public Works) Staffreeommendation: Council adopt the resolutions. Page 2 - Council Agenda 07/09/02 5. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISH]lxIG A 25-MPH SPEED LIMIT ON SD,V'ERA.DO DRIVE, BETWEEN CLUBHOUSE DRIVE AND SOUTH GREENSVIEW DRIVE, AND ADDING THIS ROADWAY SEGMENT TO SCHEDULE X OF A REGISTER MAINTAINED BY TI-[E OFFICE OF THE CITY ENGINEER Based on the provisions of Division 11, Chapter 7, Article 1 and Division 17, Chapter 3, Article 1 oft. he California Vehicle Code, and pursuant to authority under the Chula Vista Municipal Code Section 10.48.020 titled, "Established Speed Limits In Certain Zones", the City Engineer has determined that, in the interest of minimizing traffic hazards and for the promotion of public safety, the speed limit on Silverado Drive, between Clubhouse Drive and South Greensview Drive, be established at 25-mph. This speed limit will be added to Schedule X of the register maintained in the Office of the City Engineer. (Director of Public Works) Staff recommendation: Council place the ordinance on first reading. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $752,120 FROM THE AVAILABLE BALANCE IN THE PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE FUND, FOR THE REIMBURSEMENT OF COSTS PERTAINING TO THE CONSTRUCTION OF THE PEDESTRIAN BRIDGE OVER LA MEDIA ROAD, SOUTH OF EAST PALOMAR (4/5THS VOTE REQUIR D) On May 14, 2002 City Council approved an agreement with McMillin Otay Ranch, LLC to construct the pedestrian bridge over La Media Road, south of East Palomar Street. The bridge has already been constructed and is now accessible for pedestrian use. This appropriation is based on the un-audited total construction cost of $716,305 plus a five percent contingency, for a total of $752,120. The City will remit to McMillan Otay Ranch, LLC an amount equal to seventy-five percent of the un-audited total upon approval of this appropriation, and will remit the remaining twenty-five percent once the final project cost audit has been completed. (Director of Public Works) Staff recommendation: Council adopt the resolution. 7 A.' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A BOUNDARY MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED TO BE INCLUDED IN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN-OTAY RANCH-VILLAGE SIX) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN-OTAY RANCH - VILLAGE SIX) AND TO AUTHOKIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION OR CONSTRUCTION OF CERTAIN FACILITIES Page 3 - Council Agenda 07/09/02 C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING AND DIRECTING THE PREPARATION OF A REPORT FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN-OTAY RANCH -VILLAGE SIX) D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ISSUE BONDS SECURED BY SPECIAL TAXES TO PAY FOR THE ACQUISITION OR CONSTRUCTION OF CERTAIN FACILITIES IN COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN-OTAY RANCH -VILLAGE SIX) McMillin Otay Ranch, LLC has requested the City to initiate proceedings to form a Community Facilities District No. 2001-2 for the acquisition or construction of public facilities serving their properties in Village Six. Adoption of the resolutions declares the intention of the City Council to: establish such a Community Facilities District, authorizes the levy of special taxes within such Community Facilities District, and authorizes the issuance of bonds of such Community Facilities District secured by such special taxes, adopts a boundary map of the Community Facilities District, describes the facilities authorized to be financed by such Community Facilities District, requests the Director of Public Works to direct the special tax consultant to prepare the Special Tax Report, and sets the public heating for the Community Facilities District for August 13, 2002. (Director of Public Works) Staffrecommendation: Council adopt the resolutions. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THIRD AMENDMENT TO THE AGREEMENT WITH MCGILL MARTIN SELF, INC., FOR PROJECT MANAGEMENT, PLAN REVIEW, AND FINANCIAL SERVICES FOR THE CONSTRUCTION OF OLYMPIC PARKWAY, AND AUTHORIZE THE MAYOR TO EXECUTE SAID AMENDMENT The City entered into an agreement with McGill Martin Self, Inc. in May 1999 to manage the Olympic Parkway project and related facilities. Two amendments previously approved by Council increased the scope of work and the compensation. This third amendment extends the completion of services date to March of 2003, with no .additional compensation. (Director of Public Works) Staffrecommendation: Council adopt the resolution. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A BOUNDARY LOT LINE ADJUSTMENT BETWEEN A RESIDENCE AND CITY-OWNED OPEN SPACE PROPERTY AT 1701 HORSESHOE COURT, IN THE BONITA LONG CANYON DEVELOPMENT, WAIVING THE GRADING DEVIATION POLICY NO. 460-02, AND AUTHORIZING THE MAYOR TO EXECUTE GRANT DEEDS FOR THE BOUNDARY ADJUSTMENT ON BEHALF OF THE CITY Page 4 - Council Agenda 07/09/02 The property owners at 1701 Horseshoe Court have requested a boundary lot line adjustment for the purpose of'adjusting their legal property boundary to the original .graded and fenced limits provided by the developer. The proposed boundary adjustment ~s between residential Lot 180 and city-dedicated open space Lots G and H (Open Space District #14), of Bonita Long Canyon Unit No. 3, Map No. 11602. (Director of Public Works) Staffrecommendation: Council adopt the resolution. 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR THE CONNOLEY PARK RENOVATION (PR-215), FEASTER SCHOOL PLAYGROUND RENOVATION (PR-222), AND TIFFANY, LOS NI~OS, VALLE LINDe AND LANCERLOT PARKS PLAYGROUND RENOVATION (PR-225/PR-228) PROJECTS IN THE CITY OF CHULA VISTA, AND DIRECTING THE DIRECTOR OF PUBLIC WORKS TO RE-ADVERTISE AND BID THE PROJECTS On April 17, 2002, the Director of Public Works received sealed bids for these projects. The general scope of the projects consists of adding new play equipment, play surfacing, drainage improvements, irrigation, landscaping, traffic control and other miscellaneous items of work as shown on the plans. (Director of Public Works) Staff recommendation: Council adopt the resolution. 11. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DELEGATING TO THE DIRECTOR OF FINANCE THE POWER TO INITIATE APPROPRIATE COLLECTION ACTIONS AGAINST DELINQUENT SPECIAL ASSESSMENTS WITHIN ASSESSMENT DISTRICT 94-1 (EASTLAKE GREENS II), INCLUDING THE ABILITY TO ORDER FORECLOSURE ACTIONS Assessment District 94-1 (EastLake Greens II) requires the City Council to initiate collection proceedings (including foreclosure) against those property owners who are delinquent in paying the special assessment. Adoption of the resolution delegates that authority to the Director of Finance, thereby making District 94-1 consistent with other assessment districts in the City. (Assistant City Manager Powell) Staffrecommendation: Council adopt the resolution. 12. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE CALIFORNIA COUNCIL FOR THE HUMANITIES' READING THE GRAPES OF WRATH GRANT AWARDED TO THE CHULA VISTA PUBLIC LIBRARY, APPROPRIATING UNANTICIPATED FUNDS OF $1,000, AND AMENDING THE FISCAL YEAR 2002/2003 LIBRARY DEPARTMENT BUDGET (4/5THS VOTE REQUIRED) The Chula Vista Public Library applied to the California Council for the Humanities for $1,000 in grant funds to present a Reading the Grapes of Wrath film and discussion series for the Chula Vista community in Fall 2002. The library received notification recently of the grant award. (Deputy City Manager Palmer) Staffrecommendatiun: Council adopt the resolution. Page 5 - Council Agenda 07/09/02 13. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 BUDGET TO INCREASE THE SALARY RANGE FOR THE MIDDLE MANAGEMENT CLASSIFICATION OF EDUCATIONAL SERVICES MANAGER TO AN ANNUAL E-STEP SALARY OF $88,958 (4/5THS VOTE REQUIRED) An increase in the salary range is recommended to maintain equity with comparable mid- management classifications. (Director of Human Resources) Staffrecommendation: Council adopt the resolution. 14. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 BUDGET BY RECLASSIFYING ONE LIBRARIAN II TO LIBRARIAN III (4/STHS VOTE REQUIRED) Adoption of the resolution amends the Fiscal Year 2003 budget by approving the reclassification of a Librarian II to Librarian III, as a result of increases in the level and complexity of duties and responsibilities currently assigned. (Director of Human Resources) Staffrecommendation: Council adopt the resolution. 15. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING EXTENSION OF THE MILITARY LEAVE POLICY APPROVED BY COUNCIL ON OCTOBER 9, 2001 FOR ALL CLASS~IED AND UNCLASSIFIED EMPLOYEES THROUGH DECEMBER 31, 2002 On September 14, 2001, President Bush signed an order authorizing the military to call up 50,000 military reservists, in the af[ermath of the terrorist attacks. As a result, the City Council approved a tempormy Military Leave Policy to insure that City employees who are called to active duty maintain their current level of pay and benefits. (Director of Human Resources) Staffreeommendation: Council adopt the resolution. 16. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT BETWEEN THE CITY AND MARSH .RISK & INSURANCE SERVICES, FOR BENEFIT BROKER AND CONSULTING SERVICES, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT With the rapidly changing area of employee benefits, it is of increasing importance that the City employ the services of the most innovative and proactive fn-m to assist the City in "state-of4he-art" plan design changes, alternative funding arrangements, and long4erm cost control. Six proposals were received and evaluated. Based on this evaluation, Marsh Risk & Insurance Services is recommended for broker/consultant services for the City's various employee benefit programs. (Director of Human Resources) Staffreeommendation: Council adopt the resolution. Page 6 ~ Council Agenda 07/09/02 17. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE FORMATION OF COMMITTEES IN CONJUNCTION WITH THE GENERAL PLAN UPDATE, APPROVING A COMMITFEE STRUCTURE TO INCLUDE A STEERING COMMITTEE AND THREE SUBCOMMITTEES, AND MAKING PROVISIONS RELATED TO THE MEMBERSHIP THERETO AND OPERATION THEREOF As part of its actions on the General Plan Update public outreach & participation program on April 9, 2002, Council approved a draft approach for the use of committees to help guide the process and assist in preparation of the plan. The General Plan Management Team has since prepared a specific proposal for Council action, consisting of a Steering Committee and three Subcommittees covering Economic Development, Environment and Open Space, and Infi'aslructure and Services. The proposed committees incorporate representation from key community stakeholder interests, select City boards and commissions, and residents. (Director of Planning and Building) Staff recommendation: Council adopt the resolution. 18 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A BOUNDARY MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED FOR THE INCLUSION IN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL), AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING AND DIRECTING THE PREPARATION OF A COMMUNITY FACILITIES DISTRICT REPORT FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) Eastlake has requested that the City conduct proceedings to consider the approval of the formation of Community Facilities District No. 07M (CFD 0TM). This district will fund the perpetual operation and maintenance of slopes, medians and parkways and storm water treatment facilities associated with Eastlake III - Woods and Vistas and Land Swap Parcel (south parcel only). Adoption of the resolutions initiates the formal proceedings to consider the establishment ofCFD 07M. (Director of Public Works) Staff recommendation: Council adopt the resolutions. Page 7 - Council Agenda 07/09/02 ORAL COMMUNICATIONS Persons speaking during Oral Communications may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generallyprohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 19. CITY MANAGER'S REPORTS A. Scheduling of meetings. 20. MAYOR'S REPORTS A. Consideration of designation of a voting delegate and alternate for the annual League of California Cities conference to be held in Long Beach, California, October 2 through October 5, 2002. B. Ratification of appointment to thc Design Review Commission - Peter Morion. C. Ratification of reappointments to thc following boards, committees and commissions: · Commission on Aging - Helen Marie Stokes, John Acosta · Board of Appeals and Advisors - James Monaghan · Charter Review Commission - Harriet Acton · Child Care Commission - Doralee Radichel · Cultural Arts Commission - Robert McGlade, Carmen Quintana, Walter Tubbs · Design Review Committee - Cheryl Mestler · Economic Development Commission - Ramin Moshiri, Carl Nelson, William Tunstall, Christopher Lewis, Charles Moore Board of Ethics - Ricardo Gibert · Housing Advisory Commission - Gregory Alabado Human Relations Commission - Anthony Jemison, Virgil Pifia · International Friendship Commission - Michie Crockett, Oscar Gareia · Board of Library Trustees - Eduardo Valerio, George Hartman, Sandra Pasqua · Mobilehome Rent Review Commission - Mark Marchand · Parks and Recreation Commission - Lauren Weidner · Resource Conservation Commission - Douglas Reid, Pamela Bensoussan · Safety Commission - Carol Gore, Robert White · Town Centre Project Area Committee - Lisa Moctezarna, Penny Rossi · Veteran's Advisory Commission - Robert White, William Poindexter Page 8 - Council Agenda 07/09/02 D. Discussion of establishing a community task force to address the number of students being accommodated at Chula Vista schools. 21. COUNCIL COMMENTS CLOSED SESSION ~lnnouncements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Clerk's office in accordance with the Ralph M. Brown Act (Government Code 54957. 7). 22. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.903) ADJOURNMENT to an Adjourned Regular Meeting of July 11, 2002, at 6:00 p.m. in the Council Conference Room, and thence to the Regular Meeting of July 16, 2002, at 6:00 p.m. in the Council Chambers. Page 9 - Council Agenda 07/09/02 RECEIVED April 30, 2002 TO: MARY SALAS '02 JJ4 21 A9:54 CITY OF CH!JlA VJS T Á @If'f CLeRK'sOFFIC! FROM: DAVID SMITH APPOINTMENT TO THE MOBILE HOME RENT REVIEW COMMISSION Issue: Resignation. Discussion: With great regret, please accept my resignation ITom the City ofChula Vista Mobile Home Rent Review Commission."0\!1ii$bc;!n~rí!$ijJnìlûèJlÍ'lèJ'také i'i'1~¢e.onJunì!f,I,,, ;1!00'lf. This should leave approximately one year of my appointment unfulfilled, which will necessitate an interim board member. It has been a great pleasure to serve on the commission and if at all possible I would have very much liked to continue to the conclusion of this term and any further service I could have provided. This is however not to be the case. I am required to resign for the following reasons: I. I have recently retired trom the County of San Diego and thus my life direction has been greatly affected. 2. I will be changing my permanent address to Las Vegas on or about the effective date of this resignation and thus will not meet the residency requirements for the commission. 3. In October-November of this year, I will be leaving the Chula Vista area for long term travel plans and thus will not be physically available to serve on the commission. Again I wish to thank you and the citizens of the City ofChula Vista for the opportunity to serve you and them and wish all the best. I have always considered the City of Chula Vista to be one of the "best kept secrets" in San Diego County and the place that I carry in my heart as home. Best wishes in maintaining the shinning example you set for other residents of California. SPiJJr Cc: Juan Arroyo, Chair, Mobile Home Rent Review Commission :2- PETRA BARAJAS . J""uLI./ 9 d-C>()~ , I -Jc- HvLÞt VtSTh. COVNCll M~~TìNt;- C \\\ 01 C I Jo V, 1À L.A/!'/9/0 .i 7 ç \ "fì)oR:'ít{. ¡4-ve,.> C!.t\¡)u¡ 5, GeeD F:VEfl/fNb" LADIt::$ t bavT/FlllrivT /IN/} ¡:;1J £ollA/aL J:h1 ~Tìzlf ~, 'B/tflJr0f-SJ 0t-rvO/DWp..<. ~V,fI¡f1M. /.-'J,-98 AfJÞ WRiTE-IN r:"NOIÞItI~ fp~ etlf !I1/ffV<IWv' 5;-;)..l>Oa.. 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R~C\)~ t\1EI'~ YWf{ SûffDRT /rND tNj}p~enENT ~~ m~ YIC7P~y, for<- frJ~~ ùftKvLA Vístlt \ NINE ~t£Lll DJJ ~t)V, ~ d-DD~ f.,res fÞëlfvLlJ $' U 8m I1(cIJ ; ~&. ~1cw . Petra E. Barajas P.O. Box 122]23 , Chula Vista, CA 9]9]2-6823 lEt, 1¡,\'-'1lf8-17-:J..3 /",·1' COUNCIL AGENDA STATEMENT Item No. ~ Meeting Date 07/09/02 ITEM TITLE: Adoption of Resolutions relating to the November 5, 2002 Special Municipal Election: 1. R. es. olution of the City Council of the City of Chula Vista calling and gawng notice of a Special Municipal Election to be held on Tuesday, November 5, 2002, for the purpose of filling the seat of Mayor, as required by the provisions of the Chula Vista Charter and the laws of the State of California relating to the conduct of elections 2. Resolution of the City Council of the City of Chula Vista adopting regulations for candidates for elective office pertaining to materials submitted to the electorate and the costs thereof for the Special Municipal Election to be held in said City on Tuesday, November 5, 2002 3. Resolution of the City Council of the City of Chula Vista requesting the B. oard of Supervisors to permit the Registrar of Voters to perform servmes for the conduct of the Special Municipal Election for the City of Chula Vista to be consolidated with the statewide General Election to be held on Tuesday, November 5, 2002 SUBMITTED BY: Susan Bigelow, CMC/AAE, City Clerk SUMMARY: The purpose of the November 5, 2002 Special Municipal Election is to select a Mayor for a full term consisting of four years, commencing December 2002. In order to conduct the election, it is necessary to give notice in accordance with election law; to adopt regulations for candidates nmning in the election; and to request election services from the Registrar of Voters. RECOMMENDATION: Council adopt the Resolutions BACKGROUND: A General Muiiicipal Election was held on March 5, 2002 for the purpose of selecting a Mayor and two Members of the City Council (to fill Seats 1 and 2) for full terms of four years commencing in December 2002. None ofthe candidates for Mayor received fifty percent plus one vote in the General Municipal Election, and the Charter requires, therefore, that a nmoffelection be conducted between the two candidates who received the most number of votes. The Charter also requires that municipal elections be scheduled in conjunction with statewide elections, and the next' statewide general election will be held on Tuesday, November 5, 2002. At this time, it is necessary to call and give notice of the election and to request the services of the Registrar of Voters in the conduct of the election. Section 13307 of the California Elections Code also provides that the local agency must adopt regulations pertaining to the materials prepared by candidates and the costs thereof. Historically, the City has allowed candidates to submit candidate's statements of no more than 200 words. The estimated cost ora 200-word statement is $587 ($6 per 1,000 registered voters, plus $25 in set-up charges and $75 for a Spanish translation). Candidates who choose to file a candidate's statement will be required to pay $587 as a deposit at the time their statements are filed with the City Clerk. Should the actual cost be less, the balance will be refunded to the candidates; and should the actual cost be more, candidates will be billed for the difference. FISCAL IMPACT: $32,400 has been budgeted in the 2002-2003 budget for the election, and it is anticipated that the mount budgeted is sufficient. Resolution * * * * * Page 1 RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CALLING AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER5, 2002, FOR THE PURPOSE OF ELECTING A MAYOR, AS REQUIRED BY THE PROVISIONS OF THE CHULA VISTA CHARTER AND THE LAWS OF THE STATE OF CALIFORNIA RELATING TO THE CONDUCT OF ELECTIONS WHEREAS, under the provisions of the Charter of the City of Chula Vista, a Special Municipal Election shall be held on Tuesday, November 5, 2002, for the purpose of conducting a runoff election between the two candidates for Mayor who received the highest number of votes cast and yet did not receive a total of fifty percent plus one at the General Municipal Election held on March 5, 2002. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER, as follows: SECTION 1. Pursuant to the requirements of the Chula Vista Charter and the laws of the State of California, there shall be and there is hereby called and ordered held in the City of Chula Vista, California, on Tuesday, November 5, 2002, a special municipal election of the qualified electors of said City for the purpose ofa runoffelection to elect one (1) Mayor for the full term of four years, commencing December, 2002. SECTION 2. The ballots to be used at said election shall be, both as to form and matter contained therein, such as may be required by law to be used thereat. SECTION 3. The City Clerk of said City is hereby authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct said election. SECTION 4. The polls of said election shall be open at seven o'clock a.m. of the day of said election and shall remain open continuously fi.om said time until eight o'clock p.m. of the same day when said polls shall be closed, except as provided in Section 14401 of the Elections Code of the State of California. SECTION 5. In all particulars not recited in thi~ Resolution, said election shall be held and conducted as provided by law for holding municipal elections in said City. SECTION 6. Notice of the time and place of holding said election is hereby given and the City Clerk is hereby authorized, instructed and directed to give such further notice or additional notice of said election in time, form and manner as required by law. Resolution * * * * * Page 2 Submi~ed by: Approved astoform: Susan Bigelow, City Clerl~ ~ l~aheny, City Attotx~y~-J City Clerk i~.h~kttomey - -- PASSED and ADOPTED at a regular meeting of the City Council of the City of Chula Vista, California, this 9th day of July, 2002, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: Shirley Horton, Mayor ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2002- was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 9th day of July, 2002. Executed this 12th day of July, 2002. Susan Bigelow, City Clerk RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO MATERIALS SUBMITTED TO THE ELECTORATE AND THE COSTS THEREOF FOR THE SPEC/AL MUNICIPAL ELECTION TO BE HELD IN SAID CITY ON TUESDAY, NOVEMBER 5, 2002 WHEREAS, Section 13307 of the Elections Code of the State of Califomiaprovides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs thereof. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, DECLARE, DETERMINE, AND ORDER, as follows: SECTION 1. Pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at the Special Municipal Election to be held in the City of Chula Vista on November 5, 2002, may prepare a candidate's statement on an appropriate form provided by the City Clerk. Such statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate's education and qualifications expressed by the candidate himself or herself. Such statement shall neither include the party affiliation of the candidate nor membership or activity in partisan political organizations. Such statement shall be filed in the Office of the City Clerk no sooner than July 15 and no later than 5:00 p.m. on Friday, August 9, 2002. Such statement may be withdrawn, but not changed, during the stated period and until 5:00 p.m. on Monday, August 12, 2002. SECTION 2. The City Clerk shall estimate the total cost ofprinting, handling, and mailing the candidate's statements filed pursuant to the Elections Code and require each candidate filing a statement to pay in advance his or her pro rata share as a condition of having his or her statement included in the voter's pamphlet. The City Clerk shall bill each candidate for any cost in excess of the deposit and shall refund any unused portion of any deposit. SECTION 3. The City Clerk shall provide each candidate, or the candidate's representative, a copy of this Resolution at the time his or her candidate's statement is filed. Submitted by: Approved as to form: Susan Bigelow, City Clerk ~-al(eny, City Resolution 2002- Page 1 RESOLUTION 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REQUESTING THE BOARD OF SUPERVISORS TO PERMIT THE REGISTRAR OF VOTERS TO PERFORM SERVICES FOR THE CONDUCT OF THE SPECIAL MUNICIPAL ELECTION FOR THE CITY OF CHULA VISTA TO BE CONSOLIDATED WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 5, 2002 WHEREAS, the City Council of the City of Chula Vista has called an election to be held in this City on November 5, 2002; and WHEREAS, Section 439.1 of the Administrative Code of the County of San Diego authorizes the Registrar of Voters of the County of San Diego to render specified services relating to the conduct of an election to any city or district which has by resolution requested the Board of Supervisors to permit the Registrar to render the services, subject to requirements set forth in that section; and WHEREAS, a statewide election has been called to be held on the same day; and WHEREAS, pursuant to SB 230, the Board of Supervisors has approved the consolidation of the Chula Vista Special Municipal Election with a statewide general election to be held on the same day. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER, AS FOLLOWS: SECTION 1. Pursuant to above-cited provisions, the Board of Supervisors of the County of San Diego is hereby requested to permit the Registrar of Voters to perform and render all services and proceedings, and to procure and furnish any and all official ballots, notices, printed matter and all supplies and equipment and paraphernalia incidental to and connected with the conduct of the subject election of the City of Chula Vista, with the cooperation and assistance of the City Clerk of Chula Vista, in order to properly and lawfully conduct such election. SECTION 2. The exact form of the office to be voted upon to appear on the ballot and to be submitted to the voters is as follows: The election of one (1) Mayor for the full term of four years, commencing December 2002. SECTION 3. The Board of Supervisors of the County of San Diego is hereby requested to consolidate this election with the statewide election to be held on the same day, in the same territoD,. Resolution Page 2 SECTION 4. Pursuant to Section 10411 and Section 10418 of the Elections Code, (a) the election shall be held in all respects as if there were only one election; (b) only one form of ballot shall be used; and (c) the Registrar of Voters of the County of San Diego shall canvass the returns of the subject election as part of the canvass of the returns of the election consolidated hereby. SECTION 5. Pursuant to Section 10410 and Section 10418 of the Elections Code within the territories affected by this consolidation, the election precincts, polling places, voting booths and polling hours shall, in every case, be the same, and there shall be only one set of election officers in each of the precincts. SECTION 6. The County of San Diego shall be reimbursed in full for the services performed by the Registrar of Voters for the City of Chula Vista upon presentation of a bill therefor, and this City agrees to indemnify and save free and harmless the County, its officers, agents and employees from expense or liability, including reasonable attorneys' fees, as a result of an election contest arising after conduct of this election. SECTION 7. The City Clerk is hereby directed to deliver forthwith certified copies of this resolution to the Clerk of the Board of Supervisors of the County of San Diego and to the Registrar of Voters of the County of San Diego. Presented by Approved as to form by Susan Bigelow Jg~ff M. Kaheny ~ City Clerk ~ity Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 9th day of July, 2002, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Councilmembers: Shirley Horton, Mayor COUNCIL AGENDA STATEMENT Item ¢ Meeting Date 7/9/02 ITEM TITLE: Resolution Waiving the Consultant Selection Process, Approving a Four-Party Agreement Between City of Chula Vista, Remy, Thomas and Moose LLP, Consultant, McMillin Otay Ranch LLC and Otay Project L.P., Applicant, and Authorizing the Mayor to Execute Said Agreement and Resolution Waiving the Consultant Selection Process, Approving a Four-Party Agreement Between City of Chula Vista, Linda Bartz and Associates, Consultant, McMillin Otay Ranch LLC and Otay Project L.P., Applicant, and Authorizing the Mayor to Execute Said Agreement. SUBMITTED B~: Director of Public Wor~' REVIEWED BY. Cit~ Man~~L~ (4/Sths Vote: Yes_No X ) RECOMMENDATION. That Council adoyt the Resolutions approving the four-party agreements with the Consultants, Remy, Thomas and Moose LLP and Linda Bartz and Associates, and Applicant, McMillin Otay Ranch and Otay Project L.P.. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: The Applicant - Otay Project L.P., as developer of Otay Ranch Village One, Village One West, Village Five and a portion of Village Six and McMillin Otay Ranch, developer of a portion of Village 6 have agreed to enter into agreements whereby the developers fund contracts to retain the firms of: Remy, Thomas and Moose, to provide legal advice and defend the City in connection with land use matters and potential litigation predicated upon alleged deficiencies in requirements of the Otay Ranch development; and Linda Bartz and Associates, to provide consulting services on behalf of the City in with respect to eminent domain and condemnation actions. Staff is proposing to use the legal services of two different law fa'ms, Remy Thomas and Linda Bartz for the developers project and anticipate using such services in the near future. Both fa'ms are very familiar with development in the Eastern territories, have performed satisfactorily in the past and have extensive experience with projects in the Otay Ranch area and with other large development projects in the City. Both firms have a demonstrated knowledge of litigation and condemnation issues facing the City and are familiar with City processes. Thus, in staff's opinion, the City's interests would be materially better served by waiving competitive bid requirements. Both law firms are on the City Attorney's list of firms chosen through the City Attorney's selection process to provide legal services to the City for matters such as eminent domain and other litigation matters. Page 2, Item ~q' Meeting Date 6/25/02 FISCAL IMPACT: None to the City. Applicant has paid all costs associated with the proposed Agreement and shall be liable for all costs of services rendered thereunder. Attachments: Four-Party Agreemem with Remy, Thomas and Moose LLP and Applicant Four-Party Agreement with Linda Bartz and Associates and Applicant J:\Engineer\AGENDA\Remy Thomas&Linda Bartz Agreement - Otay Ranch. DOC RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING THE FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS, AND MOOSE LLP, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the applicant, McMillin Otay Ranch, as developer of Village Six, and Otay Project L.P., as developer of Otay Ranch Village One, Village One West, and Village Five have agreed to enter into agreements whereby the developers fund contract to retain the firm of Remy, Thomas and Moose LLP to provide legal advice and defend the City in connection with land use matters and potential litigation predicated upon alleged deficiencies in compliance requirements of the Otay Ranch development; and WHEREAS, Remy, Thomas, and Moose has demonstrated knowledge of litigation issues facing the City and is familiar with City processes; and WHEREAS, Remy, Thomas and Moose is very familiar with development in the eastern territories and has performed satisfactorily in the past; and WHEREAS, staff recommends that the City's interests would be materially better served by waiving competitive bid requirements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the Consultant Selection Process, approve a Four-Party Agreement between City of Chula Vista, Remy, Thomas, and Moose LLP, Consultant, McMillin Otay Ranch, LLC and Otay Project, L.P., Applicant, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said Agreements on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt John l(ff~heny Director of Public Works City Attorney J:\attorney~reso\4 party Remy Thomas ORAf1 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORM ALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL ~ /fJJilc ~ ~M.Kaheny ~ City Attorney Dated: 7-1-02 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS, AND MOOSE CONSULTANT, MCMILLIN OTAY RANCH, AND OTAY PROJECT if-if FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS AND MOOSE LLP, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L. P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS DRAFT 1. Parties. This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the attached Exhibit A as "Consultant" Remy Thomas whose business form and address is indicated on the attached Exhibit A, and the person designated on the attached Exhibit A as "Applicant" McMillin Otay Ranch LLC and Otay Project, L.P. (collectively referred to hereinafter as ("Applicant") whose business form and address is indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations. 2.1. Warranty of Ownership. Applicant warrants that Applicant is the owner of land ("Property") commonly known as, or generally located as, described on Exhibit A, Paragraph I, or has an option or other entitlement to develop said Property. 2.2. Applicant desires to develop the Property and in that regard, has made application ("Application") with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, Paragraph 3. 2.3. Applicant, Exhibit A, In order for the City to process the Application of Work of the general nature and type described in Paragraph 4, ("Work") will need to be completed. 2.4. The City has evaluated Applicant's project and seeks the assistance of outside counsel on highly specialized legal matters involving RMP compliance issues and related matters; and RemyThomasl Page 1 'f~5 2.5 Consultant is a specialist in the area of litigation law and has extensive experience in land use and environmental law; 2.6 the firm's accomplish Consultant represents it is qualified by virtue of experience, training, education and expertise to the services necessary under this Agreement. 2.7 This Agreement proposes an arrangement by which Applicant shall retain, and be liable for the costs of retaining, Consultant, who shall perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. 3. Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: 3.1. Employment of Consultant by Applicant. Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled "General Nature of Consulting Services", ("General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 5, entitled "Detailed Scope of Work", ("Detailed Services"), and all services reasonable necessary to accomplish said General Services and Detailed Scope of Work, and shall deliver such documents required ("Deliverables") herein, all within the time frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are set forth, within a reasonable period of time for the diligent execution of Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perform said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, at its own cost and expense except for the compensation and/or reimbursement, if any, herein RemyThomasl Page 2 4-fo promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation of Consultant. Applicant shall compensate Consultant for all services rendered by Consultant without regard to the conclusions reached by the Consultant, and according to the terms and conditions set forth in Exhibit C adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, by paying said amount to the City, within 15 days of Consultant's billing, or in accordance with the security deposit provisions of Paragraph 3.3 and Exhibit C, if checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liable for the compensation unless it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. 3.2.1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ("Additional Services") are needed from Consultant of the type Consultant is qualified to render or reasonably related to the Services Consultant is otherwise required to provide by this Agreement, the Consultant agrees to provide such additional services on a time and materials basis paid for by Applicant at the rates set forth in Exhibit C, unless a separate fixed fee is otherwise agreed upon in writing for said Additional Work between the parties. 3.2.1.1. In the event that the City shall determine that additional work is required to be performed above and beyond the scope of work herein provided, City will consult with Applicant regarding the additional work, and if thereupon the Applicant fails or refuses to arrange and pay for said Additional Services, the City may, at its option, suspend any further processing of Applicant's Application until the Applicant shall deposit the City's estimate of the costs of the additional work which the City determines is or may be required. Applicant shall pay any and all additional costs for the additional work. RemyThomasl Page 3 4-7 3.2.2. Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time reduce the Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Payment of Compensation by Applicant. 3.3.1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3.1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this Agreement. 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this .Agreement and any claims resulting therefrom. 3.3.1.1.4. within 30 days after of the use Nothing herein shall invalidate herein authorized. Applicant shall be notified of the Deposit in any manner. use of the Deposit in the manner 3.3.1.1.5. At such time as City shall reasonably determine that inadequate funds remain on Deposit to secure future compensation likely due Consultant or City, City may make demand of Applicant to supplement said Deposit Amount in RemyThornasl Page 4 4-(/ such amount as City shall reasonably specify, and upon doing so, Applicant shall, within 30 diiYS pays said amount ("Supplemental Deposit Amount") to City. Said Supplement Deposit Amount or Amounts shall be governed by the same terms of trust governing the original Deposit. 3.3.2. Withholding of Processing. In addition to use of the Deposit as security, in order to secure the duty of Applicant to pay Consultant for Services rendered under this Agreement, City shall be entitled to withhold processing of Applicant's Application upon a breach of Applicant's duty to compensate Consultant. 4. Non-Service Related Duties of Consultant. 4.1. Insurance. Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: 4.1.1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4.1.2. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage") . 4.1.3. Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coverage. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by RemyThomasl Page 5 4--1 delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. 4.2.2. Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City and Applicant demonstrating same. 4.3. Public Statements. All public statements and releases to the news media shall be the responsibility of the City and the Applicant. The Consultant shall not publish or release news items, articles or present lectures on the Project, either during the course of the study or after its completion, except on written concurrence of the City and Applicant. 4.4. Communication to Applicant. Consultant shall not communicate directly to the Applicant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City. The Consultant may request such meetings with the Applicant to ensure the adequacy of services performed by Consultant. 5. Non-Compensation Duties of the Applicant. 5.1. Documents Access. The Applicant shall provide to the Consultant, through the City, for the use by the Consultant and City, such documents, or copies of such documents requested by Consultant, within the possession of Applicant reasonably useful to the Consultant in performing the services herein required of Consultant, including but not limited to those described in Exhibit A, Paragraph 7. 5.2. Property Access. The Applicant hereby grants permission to the City and Consultant to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of the Applicant. Consultant shall promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless from all loss, RemyThomasl Page 6 'f-IO cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 6. Administrative Representatives. Each party designates the individuals ("Administrators") indicated in Exhibit A, Paragraph 8, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this Agreement. 7. Conflicts of Interest 7.1. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 9, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report his economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 9 of Exhibit A, or if none are specified, then as determined by the City Attorney. 7.2. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 7.3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this Agreement. 7.4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during RemyThomasl Page 7 4-11 the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 7.5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair political Practices Act, and regulations promulgated thereunder. 7.6. Specific warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in the property which is the subject matter of the Project, or in any property within 10 radial miles from the exterior boundaries of the property which is the subject matter of the Project, or ("Prohibited Interest") . Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates by Applicant or by any other party as a result of Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement. 8. Default of the Consultant for Breach. This Agreement may be terminated by the City for default if the Consultant breaches this Agreement or if the Consultant refuses or fails to pursue the work under this Agreement or any phase of the work with such diligence which would assure its completion within a reasonable period of time. Termination of this Agreement because of a default of the Consultant shall not relieve the Consultant from liability of such default. RemyThomasl Page 8 Lf -/2 9. City's Right to Terminate Agreement for Convenience, Documents. 9.1. Notwithstanding any other section or provision of this Agreement, the City shall have the absolute right at any time to terminate this Agreement or any work to be performed pursuant to this Agreement. 9.2. In the event of termination of this Agreement by the City in the absence of default of the Consultant, the City shall pay the Consultant for the reasonable value of 'the services actually performed by the Consultant up to the date of such termination, less the aggregate of all sums previously paid to the Consultant for services performed after execution of this Agreement and prior to its termination. 9.3. The Consultant hereby expressly waives any and all claims for damage or compensation arising under this Agreement, except as set forth herein, in the event of such ~ermination. 9.4. In the event of termination of this Agreement, and upon demand of the City, the Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and all other materials and documents prepared by the Consultant in performance of this Agreement, and all such documents and materials shall be the property of the City; provided however, that the Consultant may retain copies for their own use and the City shall provide a copy, at Applicant's cost, of all such documents to the Applicant. Applicant shall have no right to terminate Co~sultant, not exercise any control or direction over Consultant's 9 . 5 . and shall work. 10. Administrative Claims Requirement and Procedures No suit shall be brought arising out of this Agreement, against the City, unless a claim has first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions of which are incorporated by this reference as if set fully set forth herein. RemyThomasl Page 9 ~-8 11. Hold Harmless and Indemnification 11.1. Consultant to Indemnify City and Applicant re Injuries Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees and Applicant from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employees, subcontractors, or others of City or Applicant in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees, or Applicant, Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees or Applicant in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City or Applicant, defend any such suit or action brought against the City, its officers, agents, or employees or Applicant. Consultants' indemnification of City and Applicant shall not be limited by any prior or subsequent declaration by the Consultant. 11.2. Applicant to Indemnify City re Compensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and from any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, employees, agents, or representatives of the City ("City Indemnitees"), in any way resulting from or arising out of the refusal to pay compensation as reasonably demanded by Consultant for the performance of services required by this Agreement. 11.3. Applicant to Indemnify Re Consultant's Actions. Applicant shall defend, indemnify and hold harmless City and Consultant and their agents, including consultants, officers and employees from any claim, action or proceeding against the City, Consultant or their agents, including consultants, officers and employees to attack, set aside, void, or annul services and actions related thereto rendered by Consultant under this Agreement. This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorneys fees, or expert fees that may be asserted by any person or entity, including Applicant arising out of or in connection with Consultant and their agents and employees under this Agreement. RemyThomasl Page 10 L/-ILf This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorneys fees, or expert fees that may be asserted by any person or entity, including Applicant arising out of or in connection with Consultant and their agents and employees under this Agreement, including any claim for private attorney general fees claimed by or awarded to any party. This indemnification shall not include damages, costs, expenses, attorneys fees or expert fees for those actions taken by Consultant or their agents, including consultants, officers and employees which are determined by law to constitute legal or professional malpractice by a court of law, arbitrator or pursuant to a confession of judgment or settlement of a claim. 12. Business Licenses. Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title 5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13.1. Consultant not authorized to Represent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. 13.2. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified for the parties in Exhibit A. 13.3. Entitlement to Subsequent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. RemyThomasl Page 11 Lf -/6 13.4. Entire Agreement. This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. 13.5. Capacity of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13.6. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such RemyThomasl Page 12 q~ determination, implement and give effect to the intentions of the parties as reflected herein.. 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. 13.12. Remedies. The rights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. 13.13. No Additional Beneficiaries. Despite the fact that the required performance under this Agreement may have an affect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this Agreement. Notwithstanding the foregoing, this is a four party agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. 14. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, RemyThomasl Page 13 q-11 copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. IS. Express Waiver of Conflicts of Interest. City and Applicant hereby acknowledge that during the course of the representation which is the subject of this Agreement by Consultant, said representation and consulting by legal counsel, appraisers or other professionals as may from time to time be hired on behalf of City, may result in actual or potential conflicts of interest between City and Applicant. City and Applicant hereby knowingly and voluntarily waive any actual and/or potential conflicts of interest such representation and consultation by legal counsel and/or such professionals may give rise to now or in the future. (End of Page. Next Page is Signature Page.) RemyThomasl Page 14 4--IZ' SIGNATURE PAGE 1 OF 3 FOUR pARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS, AND MOOSE LLP, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS Now therefore, the parties hereto, having read and understood the terms and conditions of this Agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. City of Chula Vista Consultant: Mayor ~v ~. Purn~ Remy, Thom'ás and Moose, LLP By: Attest: Susan Bigelow City Clerk Approved as to Form: John M. Kaheny City Attorney RemyThomas Page 15 L/ -Ie¡ RemyThomas SIGNATURE PAGE 2 OF 3 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS, AND MOOSE LLP, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS Applicant: McMillin Otay Ranch, LLC a Delaware limited liability company By: McMillin Companies, LLC a Delaware limited liability company Its: Man By: Its: By: Its: L/-20 Page 16 RemyThomas SIGNATURE PAGE 3 OF 3 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, REMY, THOMAS, AND MOOSE LLP, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS Applicant: Otay Project, L.P., a California limited partnership By: Otay Project, LLC, a California limited liability company, General Partner By: Otay Ranch Development, LLC, a Delaware limited liability company, Authorized Member BY~~ Robert Cameron Page 17 Lf~2J Exhibit A Reference Date of Agreement: June 18, 2002 Effective Date of Agreement: Date of City Council Approval of this Agreement City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: Remy, Thomas and Moose, LLP Business Form of Consultant: ( ) Sole Proprietorship (X) Partnership ( ) Corporation Address: 455 Capitol Mall, Suite 210, Sacramento, CA 95814 Applicant: McMillin Otay Ranch, LLC Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership (X) Limited Liability Corporation Address: 2727 Hoover Street, National City, CA 91950 Applicant: Otay Project, L.P. Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation Address: 350 W. Ash Street, Suite 730, San Diego, CA 92101 1. Property (Commonly known address or General Description): Otay Ranch, a master planned development. 2. Entitlements applied for: Various maps in Villages 5 and 6 and Village One West South. RemyThomas Page 18 '-1-22 3. General Nature of Consulting Services ("Services--General"):" The services to be performed by Consultant shall consist of any and all tasks reasonably required to advise, assist and fully represent the City in all legal matters presented to Consultant and on any matters in litigation, wherein Consultant is consulted by, or appears on behalf of, the City as it relates to the Property and Entitlements in general and compliance with legal requirements in particular. 4. Detailed Scope of Work ("Detailed Services") : Consultant shall provide legal advice and defend City in connection with litigation and in anticipation thereof predicated upon alleged deficiencies in compliance requirements of the Otay Ranch Resource Management Plan (RMP) as approved by the City Council on October 28, 1993, Otay Ranch, Phase 2 Resource Management Plan (RMP2) and Preserve Conveyance Schedule as approved by City Council on June 4, 1996 and as amended and as otherwise directed by the City Attorney with reference to Entitlements applied for by Applicant with reference to the Property. 5. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Work assignments will be issued by the City Attorney on an as needed basis. Dates for completion of all Consultant services: Two years from the effective date of this Agreement. 6. Documents to be ( ) site plans elevations ( ) ( ) other: provided by Applicant to Consultant: ( ) grading plans ( ) architectural project description. RemyThomas Page 19 4-23 7. Contract Administrators. City: City Attorney Applicant: on behalf of McMillin for McMillin Otay Ranch, LLC behalf of Otay Ranch for Otay Project L.P. on Consultant: for Remy, Thomas and Moose, LLP 8. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. Category NO.1. Category No.2. Category No.3. () Category No.4. () Category No.5. () Category No.6. RemyThomas Investments and sources of income. Interests in real property. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Page 20 ¥~2~ ( ) Category No.7. Business positions. 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage) . (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage) . RemyThomas Page 21 L/--25 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: Single Fixed Fee Amount: $ Milestone or Event Amount or Percent of Fixed Fee 1. Signing of this Agreement by all parties and upon the request of the contractor. 2 . 3. 4 . Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement") Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2 . $ RemyThomas Page 22 4- - 2b 3. $ 4 . $ (X) Time and Materials For performance of the General and Detailed Services of Consultant as herein required, Applicant shall pay Consultant for the productive hours of time and material spent by Consultant in the performance of said Services, at the rates or amounts set forth hereinbelow according to the following terms and conditions: Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the General and Detailed Services herein required of Consultant for $ including all Materials, and other "reimburseables" ("Maximum Compensation") . (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City Council. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. RemyThomas Page 23 Lf -27 Ra,te Schedule Category of Employee of Consultant Name Hourly Rate Partners $250.00 Associates $185.00 Paralegal $ 75.00 Materials Separately Paid For by Applicant Cost or Rate (X) Materials Reports Copies (X) Travel (X) Printing (X) Postage (X) Delivery (X) Long Distance Telephone Charges (X) Other Actual Identifiable Direct Costs Actual Actual Actual Actual Actual Actual Actual ----------------------------------- Deposit Account: Applicant hereby agrees that City may apply funds from Applicant's existing deposit accounts with City to pay Consultant per this Agreement. ( ) Deposit Amount: $ (X) Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consultant, if this paragraph is "checked", upon City's receipt of billing by Consultant, and determination by City in good faith that Consultant's billing is proper, a judgment for which Applicant agrees to hold City harmless and waive any claim against City, City shall pay Consultant's billing from the amount RemyThomas Page 24 If ~ 2~ of the Deposit. If Applicant shall protest the propriety of a billing to City in advance of payment, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. Applicant McMillin and Otay Project will share equally Consultant's billing, but shall be jointly and severally liable for such billings. ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. Upon determination by City made in good faith that Consultant is entitled to compensation which shall remain unpaid by Applicant 30 days after billing, City may, at its option, use the Deposit to pay said billing. ---------------------------------- (X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (X) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: (X) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: To be assigned by City. RemyThomas Page 25 q~Zq RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING A FOUR-PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BARTZ & ASSOCIATES CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the applicant, McMillin Otay Ranch, as developer of Village Six, and Otay Project L.P., as developer ofOtay Ranch Village One, Village One West, and Village Five have agreed to enter into agreements whereby the developers fund contract to retain the firm of Linda Bartz & Associates to provide consulting services on behalf of the City in anticipation of eminent domain and condemnation actions which may be required for compliance with the Otay Ranch development; and WHEREAS, Linda Bartz & Associates has demonstrated knowledge of condemnation issues facing the City and is familiar with City processes; and WHEREAS, Linda Bartz & Associates is very familiar with development in the eastern territories and has performed satisfactorily in the past. WHEREAS, staff recommends that the City's interests would be materially better served by waiving competitive bid requirements. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby waive the Consultant Selection Process and approve a Four-Party Agreement between City of Chula Vista, Linda Bartz & Associates, Consultant, McMillin Otay Ranch, LLC and Otay Project, L.P., Applicant, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt Director of Public Works ~<tyf{ <O~ John M. Kaheny City Attorney J:\attomey\reso\4 party Linda Bartz 4- -30 ------~_.~----_._---_.. . DRAFT THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL fß rSìJAc ~ ~ M. Kaheny City Attorney Dated: 7-1-02 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BARTZ & ASSOCIATES, CONSULTANT, MCMILLIN OTAY RANCH AND OTAY PROJECT 4-31 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BARTZ & ASSOCIATES, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L. P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP REQUIREMENTS DRAFT 1. Parties. This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the attached Exhibit A as "Consultant" Linda Bartz & Associates whose business form and address is indicated on the attached Exhibit A, and the person designated on the attached Exhibit A as "Applicant" McMillin Otay Ranch LLC and Otay Project, L.P. (collectively referred to hereinafter as ("Applicant") whose business form and address is indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations. 2.1. Warranty of Ownership. Applicant warrants that Applicant is the owner of land ("Property") commonly known as, or generally located as, described on Exhibit A, Paragraph 1, or has an option or other entitlement to develop said Property. 2.2. Applicant desires to develop the Property and may in that regard, make application ("Application") with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, Paragraph 2. 2.3. In order for the City to process any such Application of Applicant, Work of the general nature and type described in Exhibit A, Paragraph 3, ("Work") may need to be completed or the City may need to obtain advice regarding such matters. 2.4. The City has evaluated Applicant's project and seeks the assistance of outside counsel on highly specialized legal matters involving condemnation and eminent domain matters; and Bartz2 4 Party Page 1 Lf-3? 2.5 Consultant has extensive experience in the area of eminent domain law and has extensive experience in condemnation; 2.6 the firm's accomplish consultant represents it is qualified by virtue of experience, training, education and expertise to the services necessary under this Agreement. 2.7 This Agreement proposes an arrangement by which Applicant may retain, and be liable for the costs of retaining, Consultant, who may perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. 3 . Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO BY AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS; 3.1. Employment of Consultant by Applicant. Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 3, entitled "General Nature of Consulting Services", ("General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 4, entitled "Detailed Scope of Work", ("Detailed Services"), and all services reasonable necessary to accomplish said General Services and Detailed Scope of Work, and shall deliver such documents required ("Deliverables") herein, all within the time frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are set forth, within a reasonable period of time for the diligent execution of Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perform said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, Bartz2 4 Party Page 2 L/...33 administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation of Consultant. Applicant shall compensate Consultant, appraisers engaged by Consultant and other such professionals for all services rendered by Consultant without regard to the conclusions reached by the Consultant, and according to the terms and conditions set forth in Exhibit C adjacent to the governing compensation relationship indicated by an "X" next to the appropriate arrangement, by paying said amount to the City, within 15 days of Consultant's billing, or in accordance with the security deposit provisions of Paragraph 3.3 and Exhibit C, if checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liable for the compensation unless it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. 3.2.1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ("Additional Services") are needed from Consultant of the type Consultant is qualified to render or reasonably related to the Services Consultant is otherwise required to provide by this Agreement, the Consultant agrees to provide such additional services on a time and materials basis paid for by Applicant at the rates set forth in Exhibit C, unless a separate fixed fee is otherwise agreed upon in writing for said Additional Work between the parties. 3.2.1.1. In the event that the City shall determine that additional work is required to be performed above and beyond the scope of work herein provided, City will consult with Applicant regarding the additional work, and if thereupon the Applicant fails or refuses to arrange and pay for said Additional Services, the City may, at its option, suspend any further processing of Applicant's Application until the Applicant shall deposit the City's estimate of the costs of the additional work which the City determines is or may be required. Applicant shall pay any and all additional costs for the additional work. Bartz2 4 Party Page 3 L/-3Y- 3.2.2. Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time reduce the Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Payment of Compensation by Applicant. 3.3.1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3.1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this Agreement. 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this Agreement and any claims resulting therefrom. 3.3.1.1.4. within 30 days after of the use Nothing herein shall invalidate herein authorized. Applicant shall be notified of the Deposit in any manner. use of the Deposit in the manner 3.3.1.1.5. At such time as City shall reasonably determine that inadequate funds remain on Deposit to secure future compensation likely due Consultant or City, City may make demand of Applicant to supplement said Deposit Amount in Bartz2 4 Party Page 4 ~-35 such amount as City shall reasonably specify, and upon doing so, Applicant shall, within 30 days pays said amount ("Supplemental Deposit Amount") to City. Said Supplement Deposit Amount or Amounts shall be governed by the same terms of trust governing the original Deposit. 3.3.2. Withholding of Processing. In addition to use of the Deposit as security, in order to secure the duty of Applicant to pay Consultant for Services rendered under this Agreement, City shall be entitled to withhold processing of Applicant's Application upon a breach of Applicant's duty to compensate Consultant. 4. Non-Service Related Duties of Consultant. 4.1. Insurance. Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: 4.1.1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4.1.2. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage") . 4.1.3. Errors and omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coverage. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by Bartz2 4 Party Page 5 tf-% delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. 4.2.2. Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City and Applicant demonstrating same. 4.3. Public Statements. All public statements and releases to the news media shall be the responsibility of the City and the Applicant. The Consultant shall not publish or release news items, articles or present lectures on the Project, either during the course of the study or after its completion, except on written concurrence of the City and Applicant. 4.4. Communication to Applicant. Consultant shall not communicate directly to the Applicant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City. The Consultant may request such meetings with the Applicant to ensure the adequacy of services performed by Consultant. 5. Non-Compensation Duties of the Applicant. 5.1. Documents Access. The Applicant shall provide to the Consultant, through the City, for the use by the Consultant and City, such documents, or copies of such documents requested by Consultant, within the possession of Applicant reasonably useful to the Consultant in performing the services herein required of Consultant, including but not limited to those described in Exhibit A, Paragraph 6. 5.2. Property Access. The Applicant hereby grants permission to the City and Consultant and agents and assigns to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of the Applicant. Consultant shall promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Bartz2 4 party Page 6 ~-37 Applicant harmless from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 6. Administrative Representatives. Each party designates the individuals ("Administrators") indicated in Exhibit A, Paragraph 7, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this Agreement. 7. Conflicts of Interest 7.1. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 8, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the political Reform Act conflict of interest and disclosure provisions, and shall report his economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 8 of Exhibit A, or if none are specified, then as determined by the City Attorney. 7.2. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 7.3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this Agreement. 7.4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during Bartz2 4 Party Page 7 4- -?/1 the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 7.5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practicès Act, and regulations promulgated thereunder. 7.6. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in the property which is the subject matter of the Project, or in any property within 10 radial miles from the exterior boundaries of the property which is the subject matter of the Project, or ("Prohibited Interest") . Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates by Applicant or by any other party as a result of Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement. 8. Default of the Consultant for Breach. This Agreement may be terminated by the City for default if the Consultant breaches this Agreement or if the Consultant refuses or fails to pursue the work under this Agreement or any phase of the work with such diligence which would assure its completion within a reasonable period of time. Termination of this Agreement because of a default of the Consultant shall not relieve the Consultant from liability of such default. Bartz2 4 Party Page 8 4-51 9. City's Right to Terminate Agreement for Convenience, Documents. 9.1. Notwithstanding any other section or provision of this Agreement, the City shall have the absolute right at any time to terminate this Agreement or any work to be performed pursuant to this Agreement. 9.2. In the event of termination of this Agreement by the City in the absence of default of the Consultant, the City shall pay the Consultant for the reasonable value of the services actually performed by the Consultant up to the date of such termination, less the aggregate of all sums previously paid to the Consultant for services performed after execution of this Agreement and prior to its termination. 9.3. The Consultant hereby expressly waives any and all claims for damage or compensation arising under this Agreement, except as set forth herein, in the event of such termination. 9.4. In the event of termination of this Agreement, and upon demand of the City, the Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and all other materials and documents prepared by the Consultant in performance of this Agreement, and all such documents and materials shall be the property of the City; provided however, that the Consultant may retain copies for their own use and the City shall provide a copy, at Applicant's cost, of all such documents to the Applicant. 9.5. and shall work. Applicant shall have no right to terminate Consultant, not exercise any control or direction over Consultant's 10. Administrative Claims Requirement and Procedures No suit shall be brought arising out of this Agreement, against the City, unless a claim has first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions of which are incorporated by this reference as if set fully set forth herein. 11. Hold Harmless and Indemnification. 11.1. Consultant to Indemnify City and Applicant re Injuries. Bartz2 4 Party Page 9 L/ --'10 Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees and Applicant from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employees, subcontractors, or others of City or Applicant in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees, or Applicant, Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees or Applicant in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City or Applicant, defend any such suit or action brought against the City, its officers, agents, or employees or Applicant. Consultants' indemnification of City and Applicant shall not be limited by any prior or subsequent declaration by the Consultant. 11.2. Applicant to Indemnify City re Compensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and from any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, employees, agents, or representatives of the City ("City Indemnitees"), in any way resulting from or arising out of the refusal to pay compensation as reasonably demanded by Consultant for the performance of services required by this Agreement. 11.3. Applicant to Indemnify Re Consultant's Actions. Applicant shall defend, indemnify and hold harmless City and Consultant and their agents, including consultants, officers and employees from any claim, action or proceeding against the City, Consultant or their agents, including consultants, officers and employees to attack, set aside, void or annul services and actions related thereto rendered by the Consultant under this Agreement. This indemnification obligation shall include, but not be limited to, damages, costs, expenses, attorneys fees, or expert fees that may be asserted by any person or entity, including Applicant arising out of or in connection with Consultant and her agents and employees under this Agreement, including any claim for private attorney general fees claimed by or awarded to any party. This indemnification shall not include damages, costs, expenses, attorneys fees or expert fees for those actions taken by Consultant Bartz2 4 party Page 10 'I-'ll or their agents, including consultants, officers and employees which are determined by law. to constitute legal or professional malpractice by a court of law, arbitrator or pursuant to a confession of judgment or settlement of a claim. 12. Express Waiver of Conflicts of Interest. City and Applicant hereby acknowledge that during the course of the representation which is the subject of this Agreement by Consultant, said representation and consulting by legal counsel, appraisers or other professionals as may from time to time be hired on behalf of City, may result in actual or potential conflicts or interest between City and Applicant. City and Applicant hereby knowingly and voluntarily waive any actual and/or potential conflicts of interest such representation and consultation by legal counsel and/or such professionals may give rise to now or in the future. 13. Miscellaneous. 13.1. Consultant not authorized to Represent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. 13.2. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified for the parties in Exhibit A. 13.3. Entitlement to Subsequent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. 13.4. Entire Agreement. This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject Bartz2 4 Party Page 11 L/--'l2- matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. 13.5. Capacity of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13.6. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. Bartz2 4 Party Page 12 ~-~3 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. 13.12. Remedies. The rights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. 13.13. No Additional Beneficiaries. Despite the fact that the required performance under this Agreement may have an effect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this Agreement. Notwithstanding the foregoing, this is a four party Agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. 14. Ownership, Publication, Reproduction and Use of Material. All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. Bartz2 4 Party Page 13 4~ 15. City Has No Obligation.. Notwithstanding the foregoing, it is understood that the City may, but shall be under no obligation to, acquire and/or condemn any property. (End of Page. Next Page is Signature Page.) Bartz2 4 Party Page 14 4-L{5 SIGNATURE PAGE 1 OF 3 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BARTZ & ASSOCIATES, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS Now therefore, the parties hereto, having read and understood the terms and conditions of this Agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. City of Chula Vista Mayor Consultant: Linda Bartz & Associates ~J¥¿:Z; By: Attest: Susan Bigelow City Clerk Approved as to Form: John M. Kaheny City Attorney Bartz2 4 Party Page 15 if -Lfh Bartzl 4 Party SIGNATURE PAGE 2 OF 3 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BARTZ & ASSOCIATES, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS Applicant: McMillin Otay Ranch, LLC a Delaware limited liability company By: McMillin Companies, LLC a Delawar l' ited liability company Its: Ma By: Its: By: Its: V.f'. Lf-L¡ 7 Page 16 Bartzl 4 Party SIGNATURE PAGE 3 OF 3 FOUR PARTY AGREEMENT BETWEEN CITY OF CHULA VISTA, LINDA BARTZ & ASSOCIATES, CONSULTANT, McMILLIN OTAY RANCH, LLC, AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING WORK TO BE RENDERED WITH REGARD TO APPLICANT'S PROJECT AND RMP2 REQUIREMENTS Applicant; Otay Project, L.P., a California limited partnership By: Otay Project, LLC, a California limited liability company, General Partner By: Otay Ranch Development, LLC, a Delaware limited liability company, Authorized Member BY:~~ Robert Cameron Page 17 Lf-Lfl Exhibit A Reference Date of Agreement: June 18, 2002 Effective Date of Agreement: Date of City Council Approval of this Agreement City of Chu1a Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: Linda Bartz & Associates Business Form of Consultant: (X) Sole Proprietorship ( ) Partnership ( ) Corporation Address: 1010 Second Avenue, Suite 1010 San Diego, CA 92101 Applicant: McMillin Otay Ranch, LLC Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership (X) Limited Liability Corporation Address: 2727 Hoover Street, National City, CA 91950 Applicant: Otay Project, L.P. Business Form of Applicant: ) Sole Proprietorship ) Partnership ) Corporation Address; 350 W. Ash Street, Suite 730, San Diego, CA 92101 1. Property (Commonly known address or General Description) : Otay Ranch, a master planned development and as more particularly described as to each of the applicants in the Villages One and Six SPA Plans. 2. Entitlements applied for: Bartz2 4 Party Page 18 ~-~9 Various maps in Villages 5 and 6 and Village One West South. 3. General Nature of Consulting Services ("Services--General,,):l The services to be performed by Consultant shall consist of any and all tasks reasonably required to advise, assist and fully represent the City in all legal matters presented to Consultant and on any matters in eminent domain, wherein Consultant is consulted by, or appears on behalf of, the City as it relates to the Property and Entitlements in general and compliance with legal requirements in particular. 4. Detailed Scope of Work ("Detailed Services") ; Consultant shall provide legal advice and represent City in connection with and in anticipation of eminent domain and condemnation actions as otherwise directed by the City Attorney with reference to Entitlements applied for by Applicant with reference to the Property. 5. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Work assignments will be issued by the City Attorney on an as needed basis. Dates for completion of all Consultant services: Two years from the effective date of this Agreement. 6. Documents to be provided by Applicant to Consultant: ( ) site plans elevations ( ) ( ) other; ( ) grading plans ( ) architectural project description. Bartz2 4 Party Page 19 Lf-50 7. Contract Administrators. City: City Attorney Applicant: for McMillin Otay Ranch, LLC for Otay Project L.P. Consultant: Linda Bartz 8. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. Category NO.1. Investments and sources of income. Category No.2. Interests in real property. ( ) Category NO.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category NO.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. ( ) Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Bartz2 4 Party Page 20 ~-~I ( ) Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. positions. Business 9. Insurance Requirements; (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. () Errors and Omissions insurance; None Required (included in Commercial General Liability coverage) . (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage) . Bartz2 4 Party Page 21 ~~Z Exhibit C Compensation Schedule and Deposit: Terms and Conditions. Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: Single Fixed Fee Amount: $ Milestone or Event Amount or Percent of Fixed Fee 1. Signing of this Agreement by all parties and upon the request of the contractor. 2 . 3 . 4. Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ Bartz2 4 Party Page 22 Lf -53 2. $ 3 . $ 4 . $ (X) Time and Materials For performance of the General and Detailed Services of Consultant as herein required, Applicant shall pay Consultant for the productive hours of time and material spent by Consultant in the performance of said Services, at the rates or amounts set forth hereinbelow according to the following terms and conditions: Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the General and Detailed Services herein required of Consultant for $ including all Materials, and other "reimburseables" ("Maximum Compensation"). (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City Council. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Bartz2 4 Party Page 23 4-Ç4 Rate Schedule Category of Employee of Consultant Name Hourly Rate Attorney Linda Bartz, Dennis Shields, William Polk $150.00 Paralegal Under Supervision of Consultant $ 85.00 Materials Separately Paid For by Applicant Cost or Rate (X) Materials Reports Copies (X) Travel (X) Printing (X) Postage (X) Delivery (X) Long Distance Telephone Charges (X) Other Actual Identifiable Direct Costs Actual Actual Actual Actual Actual Actual Actual ----------------------------------- Deposit Account: Applicant hereby agrees that City may apply funds from Applicant's existing deposit accounts with City to pay Consultant per this Agreement. ( ) Deposit Amount: $ (X) Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consultant, if this paragraph is "checked", upon City's receipt of billing by Consultant, and determination by City in good faith that Consultant's billing is proper, a judgment for which Applicant agrees to hold City harmless and waive any claim against City, City shall pay Consultant's billing from the Bartz2 4 Party Page 24 'f-~5 amount of the Deposit. If Applicant shall protest the propriety of a billing to City in advance of payment, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. Applicant McMillin and Otay Project will share equally Consultant's billing, but shall be jointly and severally liable for such billings. ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. Upon determination by City made in good faith that Consultant is entitled to compensation which shall remain unpaid by Applicant 30 days after billing, City may, at its option, use the Deposit to pay said billing. ---------------------------------- (X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly (X) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: ) First of the Month ) 15th Day of each Month ( ) End of the Month (X) Other: Various Dates C. City's Account Number: To be assigned by City. Bartz2 4 Party Page 25 ÿ~ COUNCIL AGENDA STATEMENT Item Meeting Date 7/9/02 ITEM TITLE: Ordinance Establishing a 25 mph speed limit on Silverado Drive between Clubhouse Drive and South Greensview Drive and adding this roadway segment to Schedule X of a register maintained by the Office of the City Engineer. ./ SUBMITTED BY: Director of Public Works~ ~/~ REVIEWED BY: City Man~\0~A~.~ll/ (4/5tbs Vote:Yes No X) Based on the provisions of Division 11-Chapte~tJ-Article 1 and Division 17-Chapter 3-Article 1 of the California Vehicle Code (CVC), and pursuant to authority under the Chula Vista Municipal Code Section 10.48.020, titled "Established Speed Limits In Certain Zones", the City Engineer has determined that, in the interest of minimizing traffic hazards and for the promotion of public safety, the speed limit on Silverado Drive between Clubhouse Drive and South Greensview Drive be established at 25 mph. This speed limit will be added to Schedule X of the register maintained in the Office of the City Engineer. RECOMMENDATION: That the City Council adopt the ordinance establishing the 25 mph speed limit on the subject roadway described in the ordinance, and amend Schedule X of the register maintained in the Office of the City Engineer. BOARDS AND COMMISSIONS RECOMMENDATION: The Safety Commission, at their meeting of June 13, 2002 vote MSCU (Lopez/McAlistcr) 5-0-2 with Commissioners Acton and White absent, to accept staff's report thereby concurring with thc recommendation that thc City Council adopt an ordinance establishing a 25 mph speed limit on Silverado Drive between Clubhouse Drive and South Greensview Drive, thereby amending Schedule X of a register maintained in the Office of thc City Engineer. DISCUSSION: On March 14, 2002, staff presented a report to the Safety Commission for an all-way stop request at thc intersection of Silverado Drive and Riviera Way. Upon conclusion of staff's presentation and public meeting discussion, the Safety Commission voted to deny thc all-way stop installation at that intersection. Based on thc Safety Commission's decision, staff did not implement traffic control at the intersection of Silverado Drive and Riviera Way. Without such traffic control, the uninterrupted length of Silvcrado Drive will remain at 3,381' (.64 mi). Based Page 2, Item ?~ Meeting Date 7/9/02 on CVC 40802 (Speed Traps), a particular section of a highway with a prima facie speed limit must be justified by an engineering and traffic survey, and enforcement of the speed limit involves the use of radar or any other electronic device that measures the speed of moving objects. This regulation however, does not apply to a local street, road or school zone. A local street or road is defined in the CVC as the following: a) Roadway width of not more than 40 feet, and b) Not more than one-half of a mile of uninterrupted length, and c) Not more than one traffic lane in each direction. Based on the uninterrupted length of over one-half of a mile for Silverado Drive, staff has determined that this segment is not considered a local road, and a posted speed limit is necessary in order for enforcement to be justified. An Engineering and Traffic Survey must be conducted within seven years in order for law enforcement officers to enforce the posted speed limit, where enforcement involves the use of radar or other electronic speed measuring devices. Speed limits should be established preferably at or below the 85th percentile speed in increments of 5 MPH. The 85th percentile speed is defined as the speed at or below which 85 percent of the traffic is moving. However, in considering existing conditions with the traffic safety needs of the community, or where unusual conditions exist which are not readily apparent to drivers, speed limits of 5 MPH below the 85th percentile may be warranted. The establishment of a speed limit of more than 5 MPH below the 85th percentile speed should be done with great care as may make violators of a disproportionate number of the reasonable majority of drivers. In determining the speed limit which is most appropriate to facilitate the orderly movement of traffic and is reasonable and safe, important factors are: prevailing speeds, unexpected conditions, and accident records. Speed limits higher than the 85th percentile are not generally considered reasonable and safe. Speed limits set at or slightly below the 85th percentile speed provide law enforcement officers with a means of controlling the drivers who will not conform to what the majority considers reasonable and prudent. Silverado Drive in this area is a 2-lane residential roadway which is 36' feet in width curb-to- curb. The segment is 3,381 feet (0.64 miles) long and parking is allowed along both sides of the roadway. Silverado Drive has an Average Daily Traffic of 2,196, and has no reported accidents. According to the Engineering and Traffic Survey conducted on April 17, 2002, the 85th percentile speed was determined to be 31 mph. Therefore, an initial speed limit would be set at 30 mph. However, Silverado Drive is designed with a vertical curve that is 180' in length and a grade difference of 9.62%. This vertical curve produces a design speed of 22 mph, which is significantly below the 85th percentile speed of 31 mph. Based on the design speed of the vertical curve on Silverado Drive coupled with the fact that Silverado Drive provides direct roadway access for adjacent residential properties, staff determined that a 25 mph speed limit would be more appropriate for the subject segment. J:\Engineer~aGENDA\SilveradoSpeedLimit.doc Page 3, Item ~ Meeting Date 7/9/02 CVC Sections 22357 and 22358 authorize local authorities to establish prima facie speed limits on streets under their jurisdiction, on the basis of an engineering and traffic survey. Based upon the criteria that the speed limit be set at or below the 85th percentile in 5 MPH increments, the speed limit on this street segment shall be set at 25 mph. It is recommended that Schedule X be revised as follows: SCHEDULE X - ESTABLISH SPEED LIMITS IN CERTAIN AREAS Name of Street Beginning At Ending At Proposed Speed l ~imit Silvcrado Drive Clubhouse Drive South Grecnsview Drive · 25 MPH FISCAL IMPACT: The cost to place four signs and pavement legends is $600. Attachment: Engineering and Traffic Surveys PowerPoint Presentation J:\Engineer~aGENDA~SilveradoSpeedLimit.doc SPEED LIMIT - ENGINEERING/TRAFFIC SURVEY STREET: Silverado Drive LIMITS: Clubhouse Drive - South Greensview Drive Length of Segment (ft): 3381.55' Existing Posted Limit (mph): None ROADWAY CHARACTERISTICS Width (ft): Varies from 36' throughout with widening to 52' at both collector slreet intersections. Total No. of Lanes: 2 (1 per direction), 10' wide raised median only at intersections with Clubhouse Drive and South Greensview Drive. The rest of the segment is undivided with width of 36'. Itorizontal Alignment: A 200' radius over a length of 184.72'. Vertical Alignment: A grade difference of 5.0% to -4.62 % over a length of 180' produces a design speed of 22 mph TRAFFIC CHARACTERISTICS Average Daily Traffic: 2196 (year 2001) On-Street Parking: Allowed on both sides over entire segment. Special Conditions: The roadway is primarily residential with direct driveway access to private homes. A golf course is located North of South Greensview Drive on each side of the segment: Accident History: No Reported Accidents. SUMMARY OF SPEED SURVEYS Segment: Clubhouse Drive- S. Greensview Drive Date Taken: 04/17/2002 No. of Vehicles on Sample (cars) 100 85th Percentile (mph) 31 mph Range of Speeds Recorded (mph) 10-40 mph SURVEY RESULTS Study was Prepared by: Nino Abad Date: 04/24/2002 ,.:_:: Recommendation: Post's25 mph due to limited '.~ ...... ~'. Vertical alignment as outlined -),:o. ~.~,;..,.:: .',. above. Date Recommendation Approved: 05/07/2002 By: majed A. A1-Ghafry, P.E.,T.E. Approved Speed Limit (mph): 25 mph ~' ' / /_ _.--, ,/, ' Per CVC 40803, Survey Expires: 04/17/2009 CITY OF CHULA VISTA - VEHICLE SPEED SURVEY SEGMENT UNDER STUDY Silverado Dr.-(Clubhouse Drive - South Greensview Drive) DATE 4/17/2002 SURVEY SITE 30' South of Riviera Way POSTED SPEED 25 mph TIME START 2:05 pm TIME END 3:16 pm WEATHER Clear DIRECTION: North = O South =/ MPHi 5 10 15 2( TOTAL % CUM % 45 44 43 42 41 40 / 1 1 100 39 38 37 36 35 O 1 1 99 34 O / / 3 3 98 33 O / / / // 6 6 95 32 30 O O O O / / / / / / / / 12 12 82 29 i O / 2 2 70 28 O O O O O / / / / / / / / 13 13 68 27 O O O O / 5 5 55 26 O O O O O O O / / 9 9 50 25 O O, / / / / / / / / 10 10 41 24 O O O / 4 4 31 23 O O O O 4 4 27 22 O O O O / 5 5 23 21 O O O / / 5 5 18 20 O O O / / / / / 8 8 13 19 18 17 O O 2 2 5 16 15 O O 2 2 3 14 13 12 11 10 O 1 1 1 9 8 7 6 RECORDER: Nino Abad TOTAL NUMBER OF VEHICLES: 100 H:\HOME~ENGINEER\TRAFFIC\Speed_Su~veys\Speed Limit Surveys 45.xls A A A ORDINANCE NO. A_N ORDINAI~CE OF THE CITY OF CHULA VISTA EST~%BLISHING A 25 MPH SPEED LIMIT ON SILVEPJ%DO DRIVE BETWEEN CLUBHOUSE DRIVE AND SOUTH GREENSVIEW DRIVE AND ADDING THIS ROADWAY SEGMENT TO SCHEDULE X OF A REGISTER MAINTAINED BY THE OFFICE OF THE CITY ENGINEER WHEREAS, based on the provisions of Division il-Chapter 7- Article 1 and Division 17-Chapter 3-Article 1 of the California Vehicle Code, and pursuant to authority under Chula Vista Municipal Code Section 10.48.020, the City Engineer has determined that, in the interest of minimizing traffic hazards and for the promotion of public safety, the speed limit on Silverado Drive between Clubhouse Drive and South Greensview Drive be established at 25 MPH. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: SECTION I: That Schedule X of a Register of Schedules maintained by the City Engineer as provided in Section 10.48.020 of the Chula Vista Municipal Code, Established Speed Limits in Certain Zones - Designated, is hereby amended to include the following changes: Chula Vista Municipal Code Section 10.48.020 - SCHEDULE × ESTABLISHED SPEED LIMITS IN CERTAIN ZONES Proposed Name of Street Beginnin9 At Ending At Speed Limit Silverado Drive South Greensview 25 MPH Clubhouse Drive Drive SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by Director of Public Works ~ty Attorney ~ J: \a~torney/ordinance\ SPEED. EST COUNCIL AGENDA STATEMENT Item (0 Meeting Date 7/09/02 ITEM TITLE: Resolution Appropriating $752,120 from the available balance in the Pedestrian Bridge Development Impact Fee Fund, for the reimbursement of costs pertaining to the construction of the pedestrian bridge over La Media Road, south of East Palomar Street. SUBMITTED BY: Director of Public Works~j~ ~,~.~ \ All REVIEWED BY: City Ma~~/ (4/5ths Vote: Yes X.~. No ._) On May 14, 2002 City Council approved an agreement with McMillin Otay Ranch LLC to construct the pedestrian bridge over La Media Road, south of East Palomar Street. The bridge has already been constructed by McMillin and is now accessible for pedestrian uses. This appropriation from the Pedestrian Bridge Development Impact Fee Fund is based on the un-audited total construction cost of $716,305 plus a 5% contingency for a total of $752,120. The City will remit to McMillan Otay Ranch LLC an amount equal to 75% of the un-audited total upon the approval of this appropriation and will remit the remaining 25% once the final project cost audit has been completed. RECOMMENDATION: That Council approve the resolution appropriating from the available fund balance in the Pedestrian Bridge Development Impact Fee Fund for the construction of the La Media pedestrian bridge. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In January 1999, this fee was established with adoption of Ordinance No. 2767. The purpose of the fee is to finance the construction of pedestrian bridge improvements between Otay Ranch Villages 1 and 5. All new development within the area generally surrounded by Telegraph Canyon Road, Otay Lakes Road, Paseo Ranchero, SR 125, and Olympic Parkway is subject to the fee and the fee revenues are used to 1) pay for the construction of the bridge improvements or 2) reimburse a developer for constructing the improvements. Homebuilders in McMillin's portion of Village 5, since fee inception date, have paid the subject fee in cash as a pre condition to the issuance of building permits. During the same time frame, McMillin Company was constructing the subject bridge as a condition of approval of the Tentative Map. Section 15 of the Pedestrian Bridge DIF ordinance No. 2767 requires the City to reimburse the Developer in cash if credit were not issued at the time of building permits. Since no Ped DIF credits were issued to McMillin's builders and the bridge has been substantially completed and accessible, the Ordinance obligate the City to reimburse the developer up to 75% of expenditures incurred until final construction costs are audited and until issuance by the City of a Notice of Completion. On June 12, 2002, McMillin Otay Ranch LLC submitted a request for cash reimbursement for 75% of estimated cost in the amount of $537,229.46. The request identified the total job cost, including soft costs, were $716,305.95. In addition to this amount the City has added an additional 5% contingency Page 2, Item Meeting Date 7/09/02 to cover any unexpected expenses or to reimburse for City staff services. Any funds remaining after all refunds are paid and all reimbursements occur will be retained in the Pedestrian Bridge Development Impact Fund. When all work is completed to the satisfaction of the City, the developer shall submit verification of payments for construction of the project. An audit is currently being conducted by MuniFinancial to determine the actual reimbursement at the 100% level. The Director of Public Works will make the final determination of expenditures that are eligible based on actual final costs. FISCAL IMPACT: The Pedestrian Bridge Development Impact Fee is funded by those developments within the benefit area of Otay Ranch SPA I. Fees have been collected at building permit issuance to fund the construction of the needed pedestrian bridges. Initially, City will reimburse the Developer $537,229.46 or 75% of estimated costs. The remaining 25% will be refunded after the completion of construction audit by our consultant. The balance of the fund after constructing the La Media crossing will be used to fund the construction of the northerly hal£ofthe two Olympic Parkway pedestrian crossings. Attachments: A - Bridge cost estimate. B - Agreement with McMillin Otay Ranch to construct the Pedestrian Bridge File No: HX-048 J:\Engineer~AGENDA~BridgeAppropiation.doc ~UN. 2~. ~,~ ~. ,,,,,, .... ~, NO. 753 P. 4 ATTAOHMENT_ ~ · Otay SPA ! P ~le-$tr/an Br/dge C ~ C ~CS ~ob: 0~1072 M~ ~y ~n~ Job; 781304 J~ C~ To~ Venanr Name - , To~ Cos~ CiW of Ch~a Vi~ $700 Hu~es & A~. Co--ct $10,~00.00 S~on Wong En~ng Field Supe~sion $10,7~9.08 H~d Cons~on Con~a~ ~ck En~n~g Con.ct - Development $9,~0.00 Tm~ Job C o ~ $716~ o f.9 5/15/02 karo DRAFT 'rT ACHMENT 13 ~ (gfØ. DEVELOPMENT IMPACT FEE AGREEMENT BY. AND BETWEEN THE CITY OF CHUh~ VISTA AND MCMILLIN OTAY RANCH, LLC This Agreement is made· this day of 2002 by and. between McMillin Otay Ranch, LLC ("Developer") and the City of C~ula Vista, a California Municipal Corporation ("City") with reference to the facts set forth below, which recitals constitute a part of the Agreement. Recitals A. WHEREAS, Developer has requested' authorization from the City through' a written resolution approved by the City Council to construct certain Facilities which are described in the request attached hereto as Exhibit A; and B. w~:EREAS, on May 14, Developer's request Resolution No. 2002 the City Council approved for authorization pursuant to ; and ('{f;,;ri~) C. WHEREAS, Ordinance agreement setting authorization. No. forth 2767 the requires a conditions written on such NOW, THEREFORE, BE IT RESOLVED that the Parties agree as follows: 1. Developer shall prepare . all . specifications 'and- submit"· same to approval. plans the City and for 2. Developer shall secure and dedicate any right-of- way required for the improvement work. 3. . Developer shall secure all required permits and environmental clearances necessary for construction of the improvements. 4. Developer shall form and amount, to the City. provide performance bonds in a and with a surety satisfactory 5. Developer shall pay all City fees and costs. /._...... ,-.:t¡fj . 0-'{ 1 , Ê~ .~-':/"".', ".' ::';:';-;'.~ :..,...;......, \/1:;1 t.{)~'þ, .;;;:.,..../.:;¡ \'j2Þ " . Developer further understands and agrees that City, (as "ìndemniteeU) or any officer or employee thereof, shall not ·be· liable for any bodily injury, death, or property damage, including thereto hazardous materials and property ta!cings claims occasioned by reason of the acts or omissions of Developer, its subcontractors or· suppliers, its agents or employees, or Indemnitee (which are not the result of Indemnitee's sole negligence or willful misconduct), related to the construction of the Facilities.. Developer., further àgrees to defend, indemnify, protect and· hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, costs and expense (including, without limitation, reasonable attorney's fees) or loss for bodily injury, death or property damages, including thereto hazardous materials and property takings claims because of or arising out of Developer's construction of the Facilities or the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee, related thereto; provided, however, that Developer shall have no obligation to indemnify, defend, protect or hold Indemnitee harmless from any such losses, claims, demands, causes of action, liability, damages, costs or expenses which arise out. of . the sole negligence or. .willful misconduct of the Indemnitee or any officer or employee thereof. Developer further agrees to defend, indemnify, protect and hold the Indemnitee harmless from any such losses, claims, demands, damages, causes of action, liability, costs and expenses to the extent that they have arisen due to the sole negligencè or willful misconduct of Inde!IU1itee. Such indemnification and agreement to hold harmless shall extend to damages to adj acent or. downstream properties or the taking of property from owners of such adj acent or downstream properties as a resul t of construction of the Facilities as provided herein. It shall also extend to damages resulting from diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, or the modification of the point of discharge as the 0-6 ? ~ /7-?;; ,~··,n ii9 resul t of construction of the Facilities. The approval of plans for the Facilities shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for said work and related improvements. The provisions of this paragraph shall become effective upon the execution of this Agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the Facilities. 7. Developer shall advance all necessary funds for the improvements, including design and construction. The City will not be responsible for any of the costs of constructing the facilities. 8. Developer shall secure at least three (3) qualified bids for work to be done. The construction contract shall be granted to the lowest qualified bidder. Any claims for additional payment for extra work or charges during construction shall be justified and shall be documented to the satisfaction of the Director of Public Works. ·.3} 9. Developer shall provide a detailed cost estimate which itemizes those costs of . the construction attributable to the improvements. The estimate is' preliminary and subj ect to. final determination by the Director of Public;:. Works upon completion of the Public Facility Project. 10. Upon determination of satisfactory incremental completion of the public facility project, as approved and certified by the Director of Public Works, . the City may pay the Developer progress payments in an amount not to exceed 75 percent of the estimated cost of the construction completed to the time of the progress payment, but shall provide in such case for the retention of 25% of such costs lliítil issuance by the City of a Notice of Completion. -~ 11. Any funds owed to the Developer as reimbursements may be applied to the Developer's obligations to fo-b 3 ,".-:-':-:-""'. ~,:~~",7J '-.,.. (7ft; '"",.,.. (và1) -.'""" " pay the Impact Fee for building permits to be applied for in'the future. 12. When all work has been completed to the satisfaction of the City, the Developer shall submit verification of payments made 'for the construction of the proj ect to the City. The Director of Public Works shall make the final determination on expenditures which are eligible for reimbursement. 13. After final determination of expenditures eligible for reimbùrsement has been made by the Public Works Director, the parties may agree to offset the Developer's duty to pay Impact Fees required by this ordinance against the City's duty to reimburse the Developer. 14. If, after offset if any, funds are due the Developer under this section, the City may at its option, reimburse the Developer from the Fund either in cash or over time as Fees are collected, or give -a credit against the Impact Fee levied by this Ordinance or some combination thereof, in the amount of the costs incurred by the Developer that exceeds their required contribution to such Facilities as required by this' Ordinance, for the design. and construction of the Facility not to exceed the estimated cost of that partièular Facility as included in the calculation and updating of the Impact Fee and in an amount agreed to in advance of their expenditure in writing by the City. 0-7 · . .~ ...._.',::':','::.~.. 'J._/.,,,..J ~'::);-g CITY OF CHULA VISTA Director of Public Works Approved as to form by . City Attorney -·;":,j~I) %i}r.~ ;:-"~(1 __ ..;.:~i;'; SIGNATIJRE PAGE TO DEVELOPMENT IMP ACT FEE AGREEMENT McMillin Otay Ranch, LLC a Delaware limited liability company By: M anies, LLC a DeJa .. d . b 'lit¡¡ company Its: Mana By: I B. Its: & ,g 5 RESOLUTION NO. 2002- RESOLUTION OF THE CITY OF CHULA VISTA APPROPRIATING $752,120 FROM THE AVAILABLE BALANCE IN THE PEDESTRIAN BRIDGE DEVELOPMENT IMPACT FEE FUND, FOR THE REIMBURSEMENT OF COSTS PERTAINING TO THE CONSTRUCTION OF THE PEDESTRIAN BRIDGE OVER LA MEDIA ROAD, SOUTH OF EAST PALOMAR WHERAS, on May 14, 2002, the City Council approved an agreement with McMillin Otay Ranch LLC to construct the pedestrian bridge over La Media Road, south of East Palomar; and WHEREAS, an appropriation from the Pedestrian Bridge Development Impact Fee is based on the un-audited total construction cost of $716,305 plus a 5% contingency for a total of $752,120; and WHEREAS, the City will remit to McMillan Otay Ranch LLC an amount equal to 75% of the un-audited total upon the approval of this appropriation and will remit the remaining 25% once the final project cost audit has been completed. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby appropriate $752,120 from the available fund b~lance in the Pedestrian Bridge Development Impact Fee Fund for the reimbursement of costs pertaining to the construction of the pedestrian bridge over La Media Road, south of East Palomar. Presented by Approved as to form by John P. Lippitt Jo~J~. K~'~eny e~-a'~ce~r Director of Public Works City Attorney J:/attorney/reso/appropriation ped bridge COUNCIL AGENDA STATEMENT Item F~ Meeting Date 7/9/02 ITEM TITLE: A. Resolution of the City Council of the City of Chula Vista, California adopting a boundary map showing the boundaries of the terdtory proposed for the inclusion in proposed Community Facilities District No. 2001-2 (McMillin-Otay Ranch-Village Six) B. Resolution of the City Council of the City of Chula Vista, California declaring its intention to establish Community Facilities District No. 2001-2 (McMillin-Otay Ranch - Village Six) and to authorize the levy of a special tax therein to finance the acquisition or construction of certain facilities. C. Resolution of the City Council of the City of Chula Vista, California ordering and directing the preparation of a report for proposed Community Facilities District No. 2001-2 (McMillin-Otay Ranch -Village Six) D. Resolution of the City Council of the City of Chula Vista, California, declaring its intention to issue bonds secured by special taxes to pay for the acquisition or construction of certain facilities in Community Facilities District No. 2001-2 (McMillin-Otay Ranch -Village Six) SUBMITTED BY: Director of Public Works ~] ~ /~. hll MR~c~:inW::yBYLch, LCiLWC ~:~:~ ~the~tW to init2te proceedings to (4fo/Strmh:~o°tme~uYn:~ ~:~s District No. 2001-2 for the acquisition or construction of public facilities se[ving their properties in Village Six. Tonight's action will (a) declare the intention of the City Council to: (i) establish such a Community Facilities District, (ii) authorize the levy of special taxes within such Community Facilities District pursuant to the proposed rate and method of apportionment for the Community Facilities District and (iii) authorize the issuance of bonds of such Community Facilities District secured by such special taxes, (b) adopt a boundary map of the Community Facilities District, (c) describe the facilities authorized to be financed by such Community Facilities District, (d) request the Director of Public Works to direct the special tax consultant to prepare the Special Tax Report and (e) set the public hearing for the Community Facilities District for August 13, 2002. RECOMMENDATION: That Council: 1) Approve the Resolution adopting the boundary map for CFD No. 2001-2, 2) Approve the Resolution declaring the intention to establish CFD No. 2001-2 and to levy a special tax to finance certain facilities, 3) Approve the Resolution ordering and directing the preparation of the "Report" for CFD No. 2001-2, 4) Approve the Resolution declaring intention of issuing bonds to finance the acquisition or construction of facilities in CFD No. 2001-2. '7-/ Page 2, Item ~'~ Meeting Date 7/9/02 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The McMillin Otay Ranch, LLC has formally petitioned thc City to form Community Facilities District No. 2001-2 (CFD No. 2001-2) (the "District") pursuant to the Mello-Roos Act of 1982 for the purpose of financing the construction and/or acquisition of certain public improvements serving Village Six of the Otay Ranch, as well as selected traffic enhancement program facilities within the greater eastern territories of Chula Vista. .Community Facilities Districts provide the necessary funding for thc acquisition or construction of public ~mprovcments by levying an annual "special tax", which is collected from thc property owners in conjunction with thc property taxes. There is no direct cost to thc City. All expenses related to the District administration (including levying and collecting the special taxes) arc to be funded by the District. The ultimate security for the bonds are the properties located within the District, not the City's General Fund or its ability to tax property within its jurisdiction. This District will be formed in conformance with the "City of Chula Vista statement of goals and policies regarding the establishment of Community Facilities Districts" (CFD Policy). To date the Environmental Impact Report has been approved by the Planning Commission on January 9, 2002 and approved by the City Council on January 22, 2002. Thc Tentative Map was approved by the Planning Commission on February 13, 2002 and approved by City Council on February 26, 2002. District Boundaries Exhibit l presents the boundaries of thc proposed Dis~ct that include all parcels located within Village Six owned by either the McMillin Company or the Roman Catholic Diocese of San Diego. At buildout, Village Six will contain a total of approximately 482 Single Family Residences and 212 Multifamily Residences within five Planning Areas. There is one large parcel in Village Six that is not currently owned by the developer, but by the Roman Catholic Diocese of San Diego (approximately 53.0 acres) for a Parish Center and a private High School. There are also several smaller parcels within Village Six that will be exempt due to the future use as part of the SR 125 improvements, school lots, Property Association parcels etc. Total exempt acreage is estimated at approximately125 acres, which includes the 53 acres owned by the Roman Catholic Diocese of San Diego. The Improvements The special tax consultant has prepared a preliminary "2% maximum tax" analysis based on estimated house sizes and prices (see Exhibit 2). Thc 2% tax analysis sets the amount of the maximum special tax that may be levied by the District within District. Thc proposed taxes arc discussed below in the section "Proposed Special Taxes". Additional calculations show that the maximum special tax revenue (using the proposed taxes) from all thc properties would support a total bond indebtedness of approximately $9.2 million (assuming a 6.5 % interest rate and a 30-year term on the bonds). A bond sale amount of $9.2 million will finance approximately $7.3 million in facilities (i.e. grading, landscaping, streets, utilities, drainage, sewer, pedestrian bridges, crc). Thc balance would provide for a reserve fund, capitalized interest and payment of District formation and bond issuance costs. Page 3, Item Meeting Date 7/9/02 The developer is proposing the financing of backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, utilities), eligible public facilities DIF improvements and pedestrian bridges. Exhibit 3 shows a preliminary list of facilities with a total cost estimate of $11.3 million. Tonight, Council would only be approving the types of the improvements to be financed by District. As noted above, it is estimated that only $9.2 million of bonds may be supported by this District, raising approximately $7.3 million of project proceeds. A final priority list and cost estimate of the improvements eligible for District financing will be brought later to Council in conjunction with the Acquisition/Financing Agreement. Ultimately, as subdivision exactions, the developer will finance improvements that this District cannot finance. The proposed District lies within portions of various Development Impact Fee (DIF) benefit areas (Poggi Canyon Sewer, Transportation, and the proposed Pedestrian Bridge DIFs) which places a cap on the District's ability to finance these improvements. Staff will work with the developer to achieve a balance between DIF and non-D1F improvements within the District. The actual amount to be financed by District would depend upon a number of factors including final interest rate on the bonds and value to lien ratio and may be higher or less than the $9.2 million mentioned above. Thus, staff recommends that tonight, Council approve a bond sale amount not to exceed $13 million which is specified in the "Resolution of Intention to Issue Bonds" that is before Council tonight. The developer concurs with staff's recommendation. Proposed Special Taxes Tonight, Council would be approving the "Rate and Method of Apportionment" ("RMA") that establishes the procedure for levying the special taxes within the District. The District generally encompass the land uses north of the proposed Birch Road, west of the proposed SR 125 alignment, south of the under construction Olympic Parkway, and just east of the La Media Road extension area. Residential Developed Parcels (single and multi family residences) are taxed based on a rate per unit and the square footage of the building. Developed parcels are those parcels for which a building permit has been issued. This tax rate has been determined by a preliminary "2% maximum tax" analysis. Said analysis, which is based on estimated house sizes and prices, sets the amount of the maximum special tax that may be levied by the District on residential parcels. It should be hoted that a final test would be required at escrow closing using actual house sale prices. If the 2% limit is exceeded, the developer is required to buy down the lien to an amount sufficient to meet the 2% criteria. The proposed Assigned Special Tax for Developed Property: Tax Rate Area Proposed Tax Rate Residential Property $440 per dwelling unit + $.34 per square foot of Residential Floor Area Non-Residential Property $11,365 per Acre Page 4, Item Meeting Date 7/9/02 The special tax proposed to be authorized to be levied on Undeveloped Property is based on the acreage of the parcel. The RMA proposes the following tax rates: I Tax Rate Area I Undeveloped Property Undeveloped Property $11,365 per Acre The special tax rates proposed for Undeveloped Property within Village Six are comparable to the rates approved for other similar Districts formed for Villages One, Five and Village One West. It should be noted that no commercial uses are currently proposed in Village Six. The developer considers these proposed special tax rates to be reasonably supported by these land use categories. The Undeveloped Property category includes all the parcels for which a building permit has not been issued. The special tax on Undeveloped Property is based on the total acreage of the parcel. During buildout if the collection of special taxes from developed taxable properties is not be enough to cover the annual debt service, the Undeveloped Property taxes will cover the shortfall. The Special Tax Consultant has determined that an Undeveloped Property tax will be needed to meet the annual debt service. Even if no development occurs and the whole property remains undeveloped, the proposed special tax proposed to be levied on undeveloped property will generate enough special tax revenue to cover the debt service on the bonds. The RMA determines that no special tax shall be levied on up to a net of 53 acres within Assessor Parcel Number 643-052-05 provided that all or a portion the property is planned for or being developed for Community Purpose Facility Property and school land uses. It is possible that land use entitlements (such as Parcel Map, Final Map or any other such division of land) may be approved prior to January 1st of any Fiscal Year for all or any portion of such area(s) which would authorize the development or use of such area(s) for purposes not exempt from the levy of the Special Tax pursuant to this RMA. Property Owner Association Property will also be exempt from the Special Tax on the condition that this does not reduce the sum of all Taxable Property to less than 75.48 acres. Property Owner Association Property, which cannot be classified as exempt property because such classification would reduce the Acreage of all Taxable Property to less than 75.48 acres, will then be classified as Undeveloped Property and subject to the levy of the special tax at a rate of $11,365 per acre. These categories were created to provide additional assurance to prospective bond purchasers that the collectible special tax revenue will always cover the annual debt service. Collection of Taxes First, the proposed Assigned Special Tax will be levied on the Developed Property. Second, if this pool of funds is not enough to meet the annual debt service, as may be the case in the early years of development, the City Administrator will levy a Special Tax on the Undeveloped Property. If additional monies are needed after the first two steps have been completed, the special tax shall be increased proportionately on each parcel from the Assigned Special Tax up to the Maximum Annual Special Tax as determined by the application of a Backup Special Tax. If, after these three steps are exhausted, there is still a need for additional monies, then the special tax shall be levied proportionately on each parcel classified as undeveloped pursuant to Section E in the RMA from the Assigned Special Tax up to the Maximum Annual Special Tax. After buildout, if determined by the City Administrator that the annual tax need is less than the collectible tax from the Developed Parcels, the special taxes to be levied in that specific year will be reduced proportionately. Since residential property in this district is taxed based on Page 5, Item Meeting Date 7/9/02 the square footage of the home and in the event that the developer builds less than projected, a Backup Special Tax is calculated for each lot within a final subdivision map as follows: Backup Special Tax = $11,365 x A L A = the acreage classified as Residential Property within the final map L = the number of lots classified as Residential within the final map The proposed "Rate and Method" also includes provisions for the prepayment of the special taxes in the event the developer or a future property owner decides to do so. Value to Lien Ratio Policy The CFD Policy requires any bond issue secured by the levy of special taxes be sized based upon a minimum 4:1 value-to-lien ratio. A ratio of less than 4:1, but equal to or greater than 3:1, may be approved, in the sole discretion of Council, when it is determined that a ratio of less than 4:1 is financially prudent under the circumstances of a particular District. A final appraisal and lien ratio analysis would be available for Council consideration prior to bond sale, which is planned for late in 2002. If the final analysis shows parcels which fail to meet the 4:1 or 3:1 ratio, the developer would be required to either: · Provide cash or letters of credit to maintain the value-to-lien ratio within the CFD Policy; or, · The principal amount of the bonds to be issued for District will be reduced to comply with the CFD Policy; or, · Provide sufficient information to convince Council that a lesser lien ratio is prudent. Maximum Tax Policy The CFD Policy establishes that the maximum annual District special taxes applicable to any newly developed residential property shall be no more than 1% of the sale price of the house. In addition, the aggregate of all annual taxes including ad valorem property taxes and assessments is limited to 2% of the sale price of the house. A preliminary calculation of the maximum special tax, using estimated house prices, has been completed and all homes fall within the 2% limit (see Exhibit 2). A final test will he performed at escrow closing using the actual sale price of the house. The CFD Policy requires that at or prior to each closing of escrow, the escrow company shall apply a "calculation formula" previously approved by the City Engineer to determine the aggregate of regular property taxes, Mello-Roos taxes, and assessment installments. If the 2% limit were exceeded, the developer would be required to provide cash to buy down the lien to an amount sufficient to meet the 2% tax ceiling. Compliance with this procedure would ensure that the aggregate tax to be paid by the purchaser of the house meets the CFD Policy criteria. Since the 2% limit is required by the CFD Policy the limit is not being included in the rate and method of the District. Page 6, Item Meeting Date 7/9/02 Resolutions There are four resolutions on today's agenda that, if adopted, will accomplish the following: The RESOLUTION ADOPTING THE BOUNDARY MAP is the formal action adopting the map and setting forth the boundaries of the proposed District. The RESOLUTION OF iNTENTION is the jurisdictional resolution declaring the intention on the City Council to establish the proposed District, authorize the levy of a special tax, and set the time and place for the public hearing for August 13, 2002. The RESOLUTION ORDERING THE "REPORT" is the formal action of the City Council directing the preparation of a detailed report containing a description of the facilities and their estimated cost. The RESOLUTION DECLARING INTENTION TO ISSUE BONDS is the formal declaration of the City Council determining that the public convenience and necessity requires that a bond indebtedness be incurred to finance certain public facilities proposed by the District. The bond amount of $13 million approved by this resolution is a maximum authorization. The actual amount of the bond sale will depend upon a number of factors including interest rotes on the bonds and compliance with the value-to-lien ratio criteria. Future Actions Adoptions of tonight's resolutions will set the District's public hearing for August 13, 2002. There will be an election following the public hearing for the landowners to vote on the District's formation. Once the votes are cast, Council will be requested to certify the election at a later date, and the District will be formed. FISCAL IMPACT: None, the developer will pay all costs and has deposited money to fund initial consultant costs, and City costs in accordance with the approved Reimbursement Agreement. The City will receive the benefit of the full cost recovery for staff time involved in District formation and administration activities. Staff anticipates that most of the District administration will be contracted out in accordance with the CFD Policy, as consideration for the City's agreement to use the City's bonding capacity to provide the financing mechanism for the construction of the proposed improvements, the developer will pay one percent (1%) of the total bond sale. Said requirement will be memorialized in the Acquisition/Financing Agreement that will be brought to Council at a later date. For example based on a bond sale totaling $ 9.2 million, said monetary compensation would be $92,000. Said amount shall be paid prior to bond sale (scheduled for fall 2002) and will be deposited into the General Fund. The CFD Policy also stipulates that said compensation is not eligible for financing by the District. Exhibits: 1- Boundary map - CFD No. 2001-2 2- 2% Maximum tax analysis J:\engineer\agenda\CAS 7-09-02 McMillin - - CCV.doc 7/2/02 12:34:45 PM 7-7 EXHIBIT 2 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN OTAY RANCH VILLAGE SlX) 2% Maximum Tax Analysis The developer is proposing the five Planning Areas for Community Facilities District No. 2001-2, each will stand on its own merits related to the house units, square footages, home prices, annual tax obligation, and annual tax percentages. Below is a summary of those Planning Areas: Ave. Planning Land # House Projected Ad School G.O. Fixed CFD Total Annual Area Use Units Square Home Valorem Tax Bond Charges Special Annual Tax Feet Price Tax Tax Tax Tax Rate R-1 SFD 101 2,967 $380,000 $3,800 $1,525 $353 $34 $1,449 $7,161 1.88% R-3 SFD 163 2,969 $361,000 $3,610 $1,535 $336 $34 $1,450 $6,965 1.93% R-4 SFD 92 2,811 $353,000 $3,530 $1,448 $328 $34 $1,396 $6,736 1.91% R-6 SFD 126 2,411 $313,000 $3,130 $1,237 $291 $34 $1,260 $5,952 1.90% R-10 CONDO 212 1,316 $220,000 $2,200 $ 651 $205 $34 $887 $3,977 1.81% RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ADOPTING A BOUNDARY MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED TO BE INCLUDED IN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCM1LLIN- OTAY RANCH - VILLAGE SIX) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA ("City Council"), desires to initiate proceedings to create a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part l, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be designated as COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILL1N - OTAY RANCH - VILLAGE SIX) (the "District"); and, WHEREAS, there has been submitted a map showing the boundaries of the territory proposed for inclusion in the District including properties and parcels of land proposed to be subject to the levy of a special tax by the District. NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The map designated as "BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2001-2" showing the boundaries of the territory proposed for inclusion in the District including the parcels proposed to be subject to the levy of a special tax by the District is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of the map of the District, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the heating on the formation or extent of such District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Sections 3110 and 3111 of the Streets and Highways Code of the State of California. Presented by: Approved as to form by: John P. Lippitt John Kaheny Director of Public Works City Attorney J:\Attomey\RESO\Res Approve Map CFD 2001-2.doc 2 RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX) AND TO AUTHORIZE THE LEVY A SPECIAL TAX THEREIN TO FINANCE THE ACQUISITION OR CONSTRUCTION OF CERTAIN FACILITIES WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), at this time desires to initiate proceedings to create a Community Facilities District pursuant to the terms and provisions o£the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX) (the "District"); and, WHEREAS, this City Council desires to proceed to adopt its Resolution of Intention to initiate the proceedings to consider the establishment of such District, to set forth the proposed boundaries for such District, to indicate the type of public facilities proposed to be financed by such District, to indicate the proposed rate and apportionment of a special tax sufficient to finance the acquisition or construction of such facilities and the administration of the District and any indebtedness incurred by the District, to set a time and place for a public heating relating to the establishment of such District; and WHEREAS, the Community Facilities District Law provides that the City Council may initiate proceedings to establish a community facilities district only iF it has first considered and adopted local goals and policies concerning the use of the Community Facilities District Law; and WHEREAS, this City Council has adopted local goals and policies as required pursuant to the Community Facilities District Law. NOW, THEREFORE, IT IS HEREBY RESOLVED: RECITALS SECTION 1. The above recitals are all true and correct. 7-:1t INITIATION OF PROCEEDINGS SECTION 2. These proceedings are initiated by this City Council pursuant to the authorization of the Community Facilities District Law. BOUNDARIES OF DISTRICT SECTION 3. It is the intention of this City Council to establish the boundaries of the proposed District. A description of the proposed boundaries of the territory to be included in the District including the properties and parcels of land proposed to be subject to the levy ora special tax by the District is as follows: All that property as shown on a map as previously approved by this City Council, such map designated by the name of this District, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. NAME OF DISTRICT SECTION 4. The name of the proposed District shall be COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX). DESCRIPTION OF FACILITIES SECTION 5. It is the intention of this City Council to finance the acquisition or construction of certain facilities authorized to be acquired or constructed pursuant to the provisions of the Community Facilities District Law. A general description of the type of facilities proposed to be authorized to be acquired or constructed is set forth in Exhibit A attached hereto and incorporated herein by this reference (the "Facilities"). The Facilities are facilities that this legislative body is authorized by law to contribute revenue to or to construct, own or operate. It is hereby further determined that the proposed Facilities are necessary to meet increased demands and needs placed upon the City as a result of development within the District. The cost of acquiring or constructing the Facilities includes Incidental Expenses as such term is defined in Government Code Section 53317(e) and may include, but not be limited to, the costs of planning and designing the facilities; ail costs associated with the establishment of the District, the issuance and administration of bonds to be issued for the District, including the payment of any rebate obligation due and owing to the federal government, the determination of the amount of any special taxes to be levied, the costs of collecting any special taxes, and costs otherwise incurred in order to carry out the authorized purposes of the District, together with any other expenses incidental to the acquisition, construction, completion and inspection of the Facilities. SPECIAL TAX SECTION 6. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to pay for such Facilities and related Incidental Expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non- exempt real property in the District, will be levied annually within the boundaries of the District. Under no circumstances will the special tax levied against any parcel used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than 10 percent. For further particulars as to the rate and method of apportionment of the proposed special tax (the "Rate and Method o f Apportionment") reference is made to the attached and incorporated in Exhibit B, which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the proposed District to clearly estimate the maximum amount that such person will have to pay. The Rates and Methods of Apportionment also sets forth the tax year after which no further special tax shall be levied or collected against any parcel used for private residential purposes within the District. A parcel shall be considered "used for private residential purposes" not later than the date on which an occupancy permit or the equivalent for private residential use is issued for such parcel. The special taxes herein proposed, to the extent possible, shall be collected in the same manner as ad valorem property taxes or in such other manner as this City Council shall determine, including without limitation, direct billing of the affected property owners, and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista (the "City"), acting for and on behalf of the District. PUBLIC HEARING SECTION 7. NOTICE IS GIVEN THAT ON AUGUST 13, 2002, AT THE HOUR OF 6:00 O'CLOCK P.M., 1N THE REGULAR MEETING PLACE OF THE CITY COUNCIL BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH STREET, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE ESTABLISHMENT OF THE PROPOSED DISTRICT, THE RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX PROPOSED TO BE LEVIED WITHIN THE DISTRICT, AND ALL OTHER MATTERS AS SET FORTH IN THIS RESOLUTION OF iNTENTION. AT THE ABOVE-MENTIONED TIME AND PLACE FOR PUBLIC HEARING ANY PERSONS iNTERESTED, INCLUDING TAXPAYERS AND PROPERTY OWNERS MAY APPEAR AND BE HEARD. THE TESTIMONY OF ALL INTERESTED PERSONS FOR OR AGAINST THE ESTABLISHMENT OF THE DISTRICT, THE EXTENT OF THE DISTRICT, OR THE FINANCING OF THE FACILITIES, WILL BE HEARD AND CONSIDERED. ANY PROTESTS MAY BE MADE ORALLY OR IN WRIT1NG. HOWEVER, ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND CLEARLY SET FORTH THE 3 7-/3 IRREGULARITIES AND DEFECTS TO WHICH THE OBJECTION IS MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK OF THE CITY ON OR BEFORE THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN IN WRITING AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. IF A WRITTEN MAJORITY PROTEST AGAINST THE ESTABLISHMENT OF THE DISTRICT IS FILED, THE PROCEEDINGS SHALL BE ABANDONED. IF SUCH MAJORITY PROTEST IS LIMITED TO CERTAIN FACILITIES OR PORTIONS OF THE SPECIAL TAX, THOSE FACILITIES OR THAT PORTION OF THE SPECIAL TAX SHALL BE ELIMINATED BY THE CITY COUNCIL. ELECTION SECTION 8. If, following the public hearing described in the Section above, the City Council determines to establish the District and proposes to levy a special tax within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within the District for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of the District, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of the District who were the owners of record at the close of the subject hearing, with each landowner or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within the District. NOTICE SECTION 9. Notice of the time and place of the public hearing shall be given by the City Clerk by causing the publication ora Notice of Public Hearing in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. The City Clerk shall also cause notice to be given by first-class mail to each registered voter, if any, and to each landowner as defined in the Community Facilities District Law within the proposed boundaries of the District. Such notice shall be mailed at least 15 days before the public hearing and shall contain the same information as is required to be contained in the notice published pursuant to the preceding paragraph. RESERVATION OF RIGHTS TO AUTHORIZE TENDER OF BONDS SECTION 10. The City Council reserves to itself, in its capacity as the legislative body of the District if formed, the right and authority to allow any interested owner of property within the District, subject to the provisions of Government Code Section 53344. l and to such conditions as this City Council may impose, and any applicable prepayment penalties as may be described in the bond indenture or comparable instrument or document, to tender to the Treasurer, acting for and on 4 behalf of the District, in full payment or partial payment of any installment of the special taxes or the interest or penalties thereon which may be due or delinquent, but for which a bill has been received, any bond or other obligation secured thereby, the bond or other obligation to be taken at par and credit to be given for the accrued interest shown thereby computed to the date of tender. ADVANCES OF FUNDS OR WORK-IN-KIND SECTION 11. At any time either before or after the formation of the District, the City Council may accept :idvances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities and may provide, by resolution, for the use of those funds or that work-in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the District. The City may enter into an agreement, by resolution, with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds so advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work- in-kind, as determined by the City Council. The City has entered into a Community Facilities District Reimbursement Agreement with McMillin Otay Ranch, LLC (the "Corporation") to provide for such advances for the payment of all initial consulting and administration costs and expenses related to the proceedings to consider the formation of the District and to subsequently authorize, issue and sell bonds for the District. Such advances are subject to reimbursement pursuant to the terms of such agreement. No such agreement shall constitute a debt or liability of the City. In addition, it is proposed that the City enter into an agreement with ihe Corporation pursuant to which the Corporation shall construct and install the Facilities and the District shall repay the funds expended by the Corporation for such purpose or value or cost of the work in-kind, whichever is less. Presented by: Approved as to form by: John P. Lippitt John Kaheny v Director of Public Works City Attorney EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES The types of public facilities authorized to be financed by the levy of special taxes within the District shall include streets, landscaping within public rights-of-way, sewers, pedestrian bridges authorized to be financed from the proceeds of the City's pedestrian bridge development impact fee, public facilities authorized to be financed from the proceeds of the City's public facilities development impact fee and public utilities as may be authorized by the goals and policies of the City Council pertaining to the use of the Community Facilities District Law. · Olympic Parkway · La Media Road South (E. Palomar Street to Olympic Parkway) · La Media Onsite - (Olympic Parkway to Santa Venetia)' · Santa Venetia Street · Magdalena Street Phases 1-3 · La Media Road Offsite (Santa Venetia to Birch Parkway) · Birch Parkway Onsite (Magdalena to SR-125) · Birch Parkway Offsite (La Media Road to Magdalena) In addition to the above improvements, this CFD's bonding capacity maybe used for the "Traffic Enhancement Program" within the greater eastern territories of Chula Vista. These transportation facilities will be traffic capacity adding improvements and could include the following projects: · Telegraph Canyon Road East of 1-805 · Telegraph Canyon Road / 1 805 On Ramp Improvements · Heritage Road (Olympic Parkway to Main Street) · East H Street Road Widening J:~Attomey\RESO\Res Intent Form CFD 2001-2 clean.doc A-1 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-2 (McMillin Otay Ranch Village Six) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Community Facilities District No. 2001-2 ("CFD No. 2001-2") and collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," and "Undeveloped Property as described below. All of the Taxable Property in CFD No. 2001-2, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable final map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD No. 2001-2 including, but not limited to, the following: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs of collecting the Special Taxes (whether by the County, the City, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of the Trustee (including its legal counsel) in the discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2001-2 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2001-2 or any designee thereof of providing continuing disclosure; the costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2001-2 or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2001-2 for any other administrative purposes of CFD No. 2001-2,' including, but not limited to attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 1 -7-/'7 "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with the provision of Section C. 1.a. below. "Available Funds" means the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, the Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Special Tax determined in accordance with the provisions of Section C. 1 .b below. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued by CFD No. 2001-2 under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year. Unless defined differently in the applicable Indenture. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD No. 2001-2" means City of Chula Vista, Community Facilities District No. 2001-2 (McMillin Otay Ranch Village Six). "City" means the City of Chula Vista. "Community Purpose Facility Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City, acting as the legislative body of CFD No. 2001-2. "County" means the County of San Diego. "Developed Property" means, for each Fiscal Year, all Taxable Property for which a building permit for new construction was issued prior to March 1 of the prior Fiscal Year. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 2 McMillin OttO, Ranch Village Six -7 "Final Subdivision Map" means a subdivision of property created by recordation of a final map, parcel map, or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots or units for which residential building permits may be issued without further subdivision of such property. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Indenture" means the indenture, fiscal agent agreement, trust agreement, resolution or other instrument pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Tables 1 and 2 of Section C. "Lot(s)" means an individual legal lot (or separate unit in the case of a condominium plan) created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. "Master Developer" means the owner of the predominant amount of Undeveloped Property in CFD No. 2001-2. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C below, which may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more non- residential structures, excluding Community Purpose Facility Property. "Occupied Residential Property" means all Assessors' Parcels of Residential Property for which title is owned by an end user (homeowner). "Outstanding Bonds" means all Bonds which remain outstanding as defined in the Indenture. "Property Owner Association Property" means any property within the boundaries of CFD No. 2001-2 owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Annual Special Tax or Backup Special Tax is equal for all Assessor's Parcels of Developed Property within CFD No. 2001-2. For Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 3 McMillin Otay Ranch Village Six Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property within CFD No. 2001-2. "Public Property" means any property within the boundaries of CFD No. 2001-2 that is owned by or dedicated to the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure prior to it being classified as Occupied Residential Property, and shall not change as a result of additions or modifications made to such structure after such classification as Occupied Residential Property. "Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for CFD No. 2001-2 to: (i) pay debt service on ail Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD No. 2001-2 provided that inclusion of such amount does not cause an increase in the levy of Special Taxes on Undeveloped Property; and (vi) less a credit for Available Funds. "State" means the State of Caiifomia. "Taxable Property" means all of the Assessor's Parcels within the boundaries of CFD No. 2001-2 which are not exempt from the Special Tax pursuant to law or Section E below. "Trustee" means the trustee, fiscai agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES City of Chula Vista dune 24, 2002 Community Facilities District No. 2001-2 Page 4 McMillin Otay Ranch Village Six Each Fiscal Year, all Assessor Parcels within CFD No. 2001-2 shall be classified as Taxable Property or Exempt Property. All Taxable Property shall then be classified as Developed Property or Undeveloped Property, and shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed Property shall then be classified as Residential Property or Non-Residential Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Non-Residential Property shall be the greater of (I) the Assigned Special Tax described in Table 1 below or (2) the amount derived by application of the Backup Special Tax. a. Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel classified as Developed Property shall be the amount shown in Table 1 below: TABLE 1 Assigned Special Tax for Developed Property Land Use Class Description Maximum Annual Special Tax 1 Residential $ 440 per unit plus $.34 per square Property foot of Residential Floor Area 2 Non-Residential $11,365 per Acre Property b. Backup Special Tax When a Final Subdivision Map is recorded within CFD No. 2001-2, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Non-Residential Property shall be determined as follows: For each Assessor's Parcel of Developed Property classified as Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: $11,365xA L The terms above have the following meanings: City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 5 McMillin Otay Ranch Village Six B = Backup Special Tax per Lot in each Fiscal Year. A = Acreage classified or to be classified as Residential Property in such Final Subdivision Map. L = Lots in the Final Subdivision Map which are classified or to be classified as Residential Property. For each Assessor's Parcel of Developed Property classified as Non-Residential Property or for each Assessor's Parcel of Undeveloped Property to be classified as Non-Residential Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $11,365 by the total Acreage of both the Non-Residential Property and Undeveloped Property to be classified as Non- Residential Property within the Final Subdivision Map area. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Non- Residential Property or Undeveloped Property for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a subsequent Final Subdivision Map then the Backup Special Tax applicable to such Assessor's Parcels shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change or modification did not take place. 2. Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel classified, as Undeveloped Property shall be the amount shown in Table 2 below: TABLE 2 Maximum Annual Special Tax for Undeveloped Property Land Use Class Description Maximum Annual Special Tax 3 Undeveloped Property $11,365 per Acre D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-2004 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 6 McMillin Otay Ranch Village Six -7 Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any Assessor's Parcels classified as Undeveloped Property pursuant to paragraphs 2 and 3 in Section E, at up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel classified as Undeveloped Property pursuant to paragraphs 2 and 3 in Section E at up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Occupied Residential Property be increased by more than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Taxable Property. E. EXEMPTIONS 1. The CFD Administrator shall classify up to 53 Acres within Assessor Parcel number 643-052-05 and any future subdivision thereof as property exempt from the Special Taxes provided that all or a portion of the property is planned for or is being developed or used for Community Purpose Facility Property and school land uses approved by the City pursuant to the Tentative Map approved for McMillin Otay Ranch, Village Six on February 26, 2002. It is possible that land use entitlements (such as parcel map, final map or any other such division of land) may be approved prior to January 1st of any Fiscal Year for all or any portion of such area(s) which would authorize the development or use of such area(s) for purposes not exempt from the levy of the Special Tax pursuant to this Section E. The adjusted area(s) shall then be classified as Taxable Property in the next Fiscal Year as Developed Property or Undeveloped property in Step 2 of Section D, as applicable. 2. The CFD Administrator shall also classify the following Assessor Parcel(s) as exempt property: (i) Public Property, (ii) Property Owner Association Property, (iii) all Assessor's Parcels defined as Commtmity Purpose Facility Property which are in addition to the property described in paragraph 1 above, and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the proposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 75.48 City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 7 McMillin Otay Ranch Village Six Acres. Notwithstanding the preceding sentence, the CFD Administrator shall not classify an Assessor's Parcel described in this paragraph as exempt property if such classification would reduce the stun of all Taxable Property to less than 75.48 Acres. Assessor's Parcels which cannot be classified as exempt property because such classification would reduce the Acreage of all Taxable Property to less than 75.48 Acres will be classified as Undeveloped Property and shall be taxed as such. Tax-exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes exempt property. 3. The Maximum Annual Special Tax obligation for any property which would be classified as Public Property upon its transfer or dedication to a public agency but which cannot be classified as exempt property as described in paragraph 2 of Section E shall be prepaid in full by the seller pursuant to Section H.1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who pays the Special Tax and feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exits, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of CFD No. 2001-2, a special three- member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No. 2001-2 may directly bill the Special Tax, may collect Special Taxes at a different time or ia a different manner if necessary to meet its financial obligations, and may covenant to foreclose and may actually foreclose on Assessor's Parcels of Taxable Property that are delinquent in the payment of Special Taxes. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 8 McMillin Otay Ranch Village Six Tenders of Bonds may be accepted for payment of Special Taxes upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. H. PREPAYMENT OF SPECIAL TAX The following definition applies to this Section H: "Outstanding Bonds" means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Bond Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Annual Special Taxes. 1. Prepayment in Full The Maximum Annual Special Tax obligation may only be prepaid and permanently satisfied by an Assessor's Parcel of Developed Property, Undeveloped Property for which a building permit has been issued, or Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Assessor's Parcel at the time of prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this figure. The Prepayment Amount (defined below) shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus Redemption Premium plus Defeasance Amount plus Administrative Fees and Expenses less Reserve Fund Credit less Capitalized Interest Credit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 9 McMillin Otay Ranch VtTlage Six Paragraph No.: 1. For Assessor's Parcels of Developed ProperVy, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit which has already been issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. 2. Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the sutn of the total expected Maximum Annual Special Tax revenue excluding any Assessor's Parcels which have been prepaid. 3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). 4. Multiply the Bond Redemption Amount computed pursuant to paragraph 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). 5. Compute the amount needed to pay interest on the Bond Redemption Amount from the first bond interest and/or principal payment date following the current Fiscal Year until the earliest redemption date for the Outstanding Bonds. 6. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. 7. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year which have not yet been paid. 8. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount (less the Administrative Fees and Expenses) from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. 9. Add the amounts computed pursuant to paragraphs 5 and 7 and subtract the amount computed pursuant to paragraph 8 (the "Defeasance Amount"). 10. Verify the administrative fees and expenses of CFD No. 2001~2, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses"). City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 10 McMillin Otay Ranch Village Six 11. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser of: (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstand'mg Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirement (as defined in the Indenture) in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. 12. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest and/or principal payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to paragraph 2 by the expected balance in the capitalized interest fund after such first interest and/or principal payment (the "Capitalized Interest Credit"). 13. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 3, 4, 9, and 10, less the amounts computed pursuant to paragraphs 11 and 12 (the "Prepayment Amount"). 14. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 9, 11, and 12 shall be deposited into the appropriate fund as established under the Indenture and be used to retire Outstanding Bonds or make debt service payments. The amount computed pursuant to paragraph 10 shall be retained by CFD No. 2001- 2. The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds. In such cases, the increment above $5,000 or integral multiple thereof will be retained in the appropriate fund established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 7 above, the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within CFD No. 2001-2 both prior to and after the proposed prepayment is at least hl times the maximum annual debt service on all Outstanding Bonds. city of Chula Vista dune 24, 2002 Community Facilities District No. 2001-2 Page 11 McMillin Otay Ranch Village Six Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1; except that a partial prepayment shall be calculated according to the following formula: PP = (PE x F) + A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H. 1, minus Administrative Expenses and Fees pursuant to Step 10. F = the pement by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Annual Special Tax. A= the Administrative Expenses and Fees pursuant to Step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to Paragraph 14 of Section H.1, and (ii) indicate in the records of CFD No. 2001-2 that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2003-2004 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for a period no longer than the 2037-2038 Fiscal Year. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 12 McMillin Otay Ranch Village Six R_ESOLUTION NO.2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ORDERING AND DIRECTING THE PREPARATION OF A REPORT FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY KANCH - VILLAGE SIX) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has declared its intention to initiate proceedings to create a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be designated as COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX) (the "District"); and, WHEREAS, this City Council directs, pursuant to the provisions of Section 53321.5 of the Government Code of the State of California, the preparation of a report to provide more detailed information relating to the proposed District, the proposed facilities to be financed through the District, and estimate of the cost of providing such facilities (the "Community Facilities District Report"). NOW, THEREFORE IT IS HEREBY RESOLVED: SECTION 1'. The above recitals are all true and correct. SECTION 2. The Director of Public Works is hereby directed and ordered to prepare or cause to be prepared the Community Facilities District Report to be presented to this City Council, generally setting forth and containing the following: FACILITIES: A full and complete description of the public facilities proposed to be financed through the District. COST ESTIMATE: A general cost estimate setting forth costs of acquiring or constructing such facilities. SPECIAL TAX: Further particulars regarding the rate and method of apportionment of the special taxes proposed to be levied within the District. -7-2q SECTION 3. The Community Facilities District Report, upon its preparation, shall be submitted to this City Council for review, and such report shall be made a part of the record of the public hearing on the Resolution of Intention to establish such District. Presented by: Approved as to form by: John P. Lippitt John Kaheny Director of Public Works City Attorney J:~AttomeyRESO\Res Ordering Report - CFD 2001-2 clean.doc 2 RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO ISSUE BONDS SECURED BY SPECIAL TAXES TO PAY FOR THE ACQUISITION OR CONSTRUCTION OF CERTAIN FACILITIES 1N COMMUNITY FACILITIES DISTRICT NO. 2001- 2 (MCMILLIN - OTAY RANCH - VILLAGE SIX) WHEtLEAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has initiated proceedings to create a Community Facilities District pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law") to finance the acquisition or construction of certain authorized facilities. This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILL1N - OTAY RANCH - VILLAGE SIX) (the "District"); and, WHEREAS, it is the intention of this legislative body to finance the acquisition or construction of all or a portion of such facilities through the issuance of bonds to be issued by and for the District, such bonds to be secured by special taxes to be levied on taxable property within the District, all as authorized pursuant to the Community Facilities District Law. NOW THEREFORE IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. This City Council declares that the public convenience and necessity requires that a bonded indebtedness be incurred by the District to contribute to the financing of all or a portion of the authorized facilities. SECTION 3. The purpose for the proposed debt of the District is to contribute to the financing of the acquisition or construction of authorized facilities consisting of the types of public facilities described in Exhibit A attached hereto and incorporated heroin by this reference (the "Facilities"). SECTION 4. The amount of the bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the indebtedness is proposed to be incurred as authorized pursuant to the Community Facilities District Law. The amount of the indebtedness proposed to be authorized for the District is: $13,000,000 SECTION 5. NOTICE IS GIVEN THAT ON AUGUST 13, 2002, AT THE HOUR OF 6:00 O'CLOCK P.M. 1N THE REGULAR MEETING PLACE OF THE LEGISLATiVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, LOCATED AT 276 FOURTH STREET, CHULA VISTA, CALIFORNIA, A HEARING WILL BE HELD ON THE iNTENTION OF THIS LEGISLATIVE BODY TO iNCUR A BONDED iNDEBTEDNESS OF THE DISTRICT TO CONTRIBUTE TO THE FiNANCING OF THE FACILITIES, SUCH INDEBTEDNESS TO BE SECURED BY THE LEVY OF SPECIAL TAXES WITHIN THE DISTRICT. AT THE TIME AND PLACE FIXED FOR SAID PUBLIC HEARING ANY PERSONS INTERESTED, INCLUDING PERSONS OWNING PROPERTY WITHIN THE DISTRICT, MAY APPEAR AND PRESENT ANY MATTERS RELATING TO THE PROPOSED iNTENTION AND NECESSITY FOR INCURRING A BONDED INDEBTEDNESS OF THE DISTRICT, SUCH INDEBTEDNESS WHICH WILL CONTRIBUTE TO THE FINANCING OF ALL OR A PORTION OF THE FACILITIES AND WHICH WILL BE SECURED BY A SPECIAL TAX TO BE LEVIED WITH1N THE DISTRICT. SECTION 6. Notice of the time and place of the public hearing shall be given by the City Clerk by publishing a Notice of Public Hearing in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public hearing. Presented by: Approved as to form by: John P. Lippitt John Kaheny Director of Public Works City Attorney J:\Attomey\RESO\Res Intent Issue Bonds CFD 2001-2.doc 2 EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES The types of public facilities authorized to be financed by the levy of special taxes within the District shall include streets, landscaping within public rights-of-way, sewers, pedestrian bridges authorized to be financed from the proceeds of the City's pedestrian bridge development impact fee, public facilities authorized to be financed from the proceeds of the City's public facilities development impact fee and public utilities as may be authorized by the goals and policies of the City Council pertaining to the use of the Community Facilities District Law. · Olympic Parkway La Media Road South (E. Palomar Street to Olympic Parkway) · La Media Onsite - (Olympic Parkway to Santa Venetia) · Santa Venetia Street · Magdalena Street Phases 1-3 · La Media Road Offsite (Santa Venetia to Birch Parkway) · Birch Parkway Onsite (Magdalena to SR-125) · Birch Parkway Offsite (La Media Road to Magdalena) In addition to the above improvements, this CFD's bonding capacity maybe used for the "Traffic Enhancement Program" within the greater eastern territories of Chula Vista. These transportation facilities will be traffic capacity adding improvements and could include the following projects: · Telegraph Canyon Road East of 1-805 · Telegraph Canyon Road / 1 805 On Ramp Improvements · Heritage Road (Olympic Parkway to Main Street) · East H Street Road Widening H:\ENGINEER\RESOS\Res Intent Issue Bonds CFD 2001-2.doc A-1 COUNCIL AGENDA STATEMENT Item <~ Meeting Date 7/9/02 ITEM TITLE: Resolution Approving a third amendment to the agreement with McGill Martin Self, Inc., for Project Management, Plan Review and Financial Services for the Construction of Olympic Parkway and authorizing the Mayor to execute said amendment SUBMITTED BY: Director of Public Works~ff~ The City entered into an agreement with the c-'offsultant, McGill Martin Self, Inc. (MMS), in May 1999 to manage the Olympic Parkway project and related facilities. Two amendments previously approved by Council increased the scope of work and the compensation. This third amendment will extend the completion of services date to March of 2003, with no additional compensation. RECOMMENDATION: That Council approve the resolution approving a third amendment to the agreement with McGill Martin Self, Inc., for Project Management, Plan Review and Financial Services for the Construction of Olympic Parkway. BOARDS/COMMISSIONS RECOMMENDATION: N/A. DISCUSSION: Background On January 19, 1999, the City Council approved, by Resolution 19346, the selection of McGill Martin Self, Inc. (MMS) as the project consultant to provide project management, plan check and financing district management services for the Olympic Parkway project. The initial contract was negotiated for $450,000. First and second amendments to the contract were approved by City Council by Resolutions 19502 and 2000-095, expanding the scope of work and increasing the total compensation to $3,821,500. Approximately $3,000,000 has been spent to date for project management, plan checking services, and community facility district processing. Olympic Parkway Project Status The Olympic Parkway projects include the construction of Olympic Parkway from Oleander to SR 125, Pasco Ranchero from East Palomar to Olympic Parkway, La Media from East Palomar to Olympic Parkway and a portion of East Palomar Street. All of these projects have been permitted and are either completed or under construction. The plan check effort is essentially complete except for construction related change orders and follow up on some landscape issues. Project management services are still necessary because several of the Olympic Parkway projects Page 2, Item Meeting Date 7/9/02 are still under construction. The major outstanding issues include: · Coordination of construction activities to ensure the timely delivery of the roadways · CoordinationofOlympicPkwyconstructionwithCaltrans and/or CTV in the vicinity of 1- 805 and SR 125 · Coordination of Poggi channel conservation easements with resource agencies · Coordination of landscape design of City-owned parcel at the comer of Olympic Pkwy and Brandywine · Monitoring the Poggi channel pursuant to the resource permits · Coordination of mitigation land for the construction activities in Poggi channel · Coordination of channel maintenance requirements The Community Facilities Districts have been formed or amended and the only remaining work is the audit of final costs. Under the existing contract, MMS is authorized to extend audit services beyond March, 2002. At the time of the second amendment staff anticipated that the audit work would extend beyond March 2002 as the final audit cannot be completed until after construction of all the improvements, including landscaping. Proposed Contract amendment Staffrecommends that MMS continue on the project as project manager and that Council approve of the amendment to extend the contract completion of services date to March 2003. Staff further recommends that the City Manager be granted authority to extend the completion date beyond March 2003 if he deems necessary. This change does not authorize the City Manager to increase the amount of compensation. The MMS proposal does not include additional compensation above the previously approved contract amount of $3,821,500. However, staff and MMS recommend that the budgeted amounts be reallocated as follows: Project Management services $125,000 Environmental $ 95,000 CFD 99-1 Audit Services $200,000 Plan Review/Construction Changes $102,500 CFD Modifications $ 5,000 Reimburseable Expenses $ 7,000 Contingencies $ 75,000 Contingency (not budgeted) $160,000 Total $ 769,500 Page 3, Item Meeting Date 7/9/02 Several sources of funds are used to pay MMS including TDIF funds, Poggi Sewer D1F funds, and developer deposits. Of the above estimated $769,500, approximately $ 325,000 are anticipated to come from the TDIF and Poggi funds. The remainder is expected to be funded by McMillin and Otay Ranch developer deposits. Both development companies have been apprised and approve of the proposal to extend the contract and reallocate the budget. Previously appropriated TDIF and Poggi sewer funds are sufficient to pay for the estimated charges to complete the remaining tasks on the project. FISCAL IMPACT: Transportation DIF (STM331) $ 2,259,600 $ 425,000 Poggi Sewer DIF (STM 33 I) $ 25,500 $ 24,000 Developers (estimated) $1,536,400 NA Total $ 3,821,500 NA Both McMillin and Otay Ranch Company have been appraised of this proposal and its cost. Attachments: Exhibit 1 ~ Consultant cost proposal Exhibit 2 - Letter dated 6/20/02 File: 0735-10-STM33 l H:\HOME~ENGINEER~kGENDA\MMSAM3.DOC DDS July 2, 2002 (9:18AM) EXHIBIT ~.....~ McGILL MARTIN SELF/ INC. Co~nmu/lit~! Pl~nnl'ng De.~igl! Eiitlf~c,l~?nts M.fr.~trl~cf!lre F/nm!ce Mapping 344 F ~trcet, Suite 100 Chzda Vista, CA ~)I910 Tel: 619.425.13d3 Fax: 619,d25.~357 :t~tl,t~.ltt]}~s inc.~et April 11, 2002 (Revised May 17, 2002) Mr. Cliff Swanson, P.E. City Engineer City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: Amendment No. 3 to Contract for Professional Services Olympic Parkway - Brandywine to SR-125 (MMS Job No. 1953) Dear Cliff: McGill Martin Self, Inc. (MMS) is submitting this letter to request an amendment to our existing contract for professional services for the Olympic Parkway (OP) project and the related financing districts. Amendment No. 2 to our contract was executed in March 2000 and was intended to span the period of the completion of the construction of OP (Brandywine to SR 125), which was then estimated to occur in March 2002. The exception to this was the work on the CFD and TDIF auditing related to CFD 99-1 (the financing district funding the construction of Olympic Parkway) that will last until the close out of the district beyond the completion of construction. Due to a variety of factors, the completion of the construction of OP has been delayed to late 2002. It is necessary to amend our contract to extend our services through the completion of OP and the associated project closeout work. The purpose of this letter is to outline the remaining tasks related to the construction of the final two phases of OP and establish a new estimated budget to complete these tasks. BACKGROUND Through February of 2002, there is approximately $800,000 of 'budget' available against the amount contracted with Amendment No. 2. This includes about $150,000 for Environmental and Project Management, $200,000 for Plan Check, and $275,000 in 'contingency'. The remaining budget for CFD/TDIF auditing is more than $100,000. Based upon the tasks remaining, it appears that the total overall budget remaining will not be needed, however, the budgets for some tasks need to be modified. With the approval of the improvement plans for Phase 3, the plan check effort is essentially complete except for some additional landscape plan review, change orders, and work related to the landscaping of the City owned parcel at the comer of Brandywine Drive. There are Mr. Cliff Swanson April 11, 2002 Page 2 still outstanding environmental issues that need to be completed including finalizing the negotiations with the resource agencies on credit for the Poggi detention basin/channel as wetland mitigation. In addition, Merkel & Associates is a subconsultant to MMS for construction monitoring of the channel vegetation and stream meander features as well as the design of the offsite mitigation area. This work is not yet completed. Other major tasks still in process or needing completion include: · Closure of the negotiations/settlement with the Brandywine Classics HOA regarding the easement for the soundwall adjacent to Olympic Parkway (window replacement, wall transition, new wall around pool area, etc.), Closure of agreements with homeowners along Brandywine Drive and Rivera Street, Coordination regarding OP interface with SR-125 including encroachment permit for completion of OP construction, · Management/coordination of the preparation of the conservation easements for Poggi Channel, · Any coordination effort related to "PR" around the opening of OP Phases 2 & 3, · Coordination with CCV and developers regarding final acceptance of roadway facilities, · Remaining plan check tasks primarily related to landscaping, · Various project closeout activities. Following is a more detailed description of the expanded scope items that will need to be addressed by the proposed contract amendment. CFD 99-1 Based upon the funds remaining in the CFD 99-1 acquisition accounts and discussions with the Otay Ranch Company (ORC), it is anticipated that there are five remaining payment requests to be processed. Each one of these will be in the $1 million to $1.5 million range. In addition to these five audits, we will need to do a final retention release audit. As a result of recent discussion and meetings with CCV staff, ORC and McMillin, it has also been requested that MMS prepare a final overall OP cost summary identifying the total cost of all facilities from Brandywine Drive to SR-125. This is needed to allocate the costs per the OP financing agreement as well as in determining the proper assignment of costs and resulting payments for OP from McMillin's CFD 97-3. It is anticipated that MMS will also be involved in the project and CFD close out activities such as coordination with CCV and developers regarding major punch list items, release of Mr. Cliff Swanson April 11, 2002 Page 3 certain bonds, and payment of retention and retained increment. These items may last well after the opeffmg of the roadway to traffic. Based upon the tasks still remaining, it is recommended that the budget for CFD 99-1 related work be increased by $100,000.00. PLAN CHECK Improvement Plans - The majority of the plan check for the OP improvements has been completed. There may be a need to perform plan review for some of the change orders that will occur as Phases 2 & 3 are completed in construction, however, based upon previous discussions, this will be performed primarily by City staff. To close out our plan check effort, it is recommended that MMS sort the documents in our possession and return to the City some of the material (plan check sets, drainage studies, geotechnical reports, etc.) for archiving. Some of the budget should be allocated for this effort (Recommended Budget: $5,000 to $7,500). The effort to date on the Oleander to Brandywine portion of OP (City project # SB023C) related to the Brandywine Classics issues, the Rodriguez house and Rivera Street window agreements, has been charged against 'plan check' in our contract. It is assumed that we want to continue in the same manner for the remaining tasks to complete the closure of these issues. Specific tasks to complete this effort include: Meetings and discussions with CCV staff, Linda Bartz, City Attorney's office, HOA staff and consultants, and HOA attorney regarding final settlement agreement (including escrow of funds for wall around pool area) with Brandywine Classics HOA, Site visits and meetings with window contractors, HOA staff, board members and HOA architect to determine suitable replacement windows, Preparation of sketches and concept design of wall transition between existing and new soundwall, Coordination and review of landscape enhancements to shield wall transition, Interface and coordination with CCV staff regarding 'punch list' items to satisfy HOA (landscape, drainage, etc.), Coordination regarding sound wall revisions adjacent to the Rodriguez residence, Meetings and coordination with Rick Ryals regarding finalizing the window agreements with the Rivera Street homeowners. It is recommended that a budget of $20,000 to $25,000 be allocated to complete these tasks. In addition, a budget should be reserved for construction related issues that may arise during Mr. Cliff Swanson April 11, 2OO2 Page 4 the completion of Phases 2 & 3. Identification of these issues cannot be done at this time due to the obvious nature of construction, but a good example of such an item is the recent erosion problem in the upper most portion of the Poggi Channel. Resolution of this issue will require site visits, meetings, coordination and follow-up with CCV staff, Merkel & Assoc., the developer and his contractor. A budget contingency should be maintained for items of this nature that may arise during the construction of Phases 2 & 3. (Recommended Budget: $20,000) Landscape Plans - The construction of the Phase I streetscape landscaping is currently underway. Phases 2 & 3 streetscape landscape construction will not commence until later this year, and may even extend through the winter into next year, after portions of the roadway are open to traffic. Portions of the Poggi channel mitigation landscaping have also been constructed. This work will be completed as the streetscape landscaping is completed for the remaining phases of the roadway. The plan checks for Phases 1, 2a, & 2b are completed. Phase 3 landscape plans have been through three plan checks and we are awaiting final mylars to be submitted soon. The remaining tasks for landscape plan check include: Final 'mylar' plan check for Phase 3 landscape plans, Resolution, coordination, and plan check (as needed) for various construction related change orders and design revisions as they arise, Review and coordination of landscape design for the City-owned parcel at the Brandywine/Olympic parkway intersection, Plan review and coordination between Merkel & Associates, CCV, ADL, and ORC for the mitigation landscape plans for the Poggi detention basin. (Based upon a recent discussion with the resource agencies, it appears we will be able to construct mitigation wetlands within the basin. This will negate the requirement to construct offsite wetland mitigation within Wolf Canyon.), General coordination with CCV, ORC, McMillin, developer consultant, and landscape architects related to construction issues, conflicts, maintenance acceptance, bond releases, interface with SR-125 construction and landscaping, and other project close-out issues. Based upon these remaining tasks, it is recommended that $50,000 be budgeted to complete the landscape related items for this project. ENVIRONMENTAL In addition to the standard permit requirements, the 404 permit for Olympic Parkway required thc City to: Mr. Cliff Swanson April 11, 2O02 Page 5 · Design and construct the Poggi channel to function as a natural stream for certain flow volumes (including monitoring of the success of the stream as required by the Corps), · Prepare a Tamarisk removal plan for the Otay river watershed, · Provide 4.29 acres ofoffsite wetland mitigation either in the form of purchase of acreage within the Rancho Jamul mitigation bank, or creation of wetlands within Wolf Canyon. MMS hired Merkel & Associates as our sub-consultant to perform much of the work related to these items. To date, the construction of the channel including the stream meander features is essentially complete. Monitoring of the success of the channel as required by the permit will continue through the completion of the landscaping within the channel. The Tamarisk plan was submitted to the agencies per the timeframe established in the 404 permit. Merkel has been involved in discussions with the resource agencies for the past 12 -15 months regarding obtaining credit for the onsite wetlands created within the channel, and possible creation Within the detention basin in lieu of constructing wetlands offsite. It currently looks as if this will be acceptable to the agencies. The remaining environmental tasks needed to complete this project include: Finalizing negotiations and documentation of the agreement to obtain credit for onsite wetland mitigation, Design and construction oversight and monitoring of the wetland creation (planting & irrigation) within the Poggi basin, Coordination with CCV staff and resource agencies regarding maintenance requirements, Review and coordination of the preparation and recordation of the conservation easements for the channel and basin mitigation areas, Obtaining final written Corps acknowledgement that the Tamarisk plan submitted satisfies the 404 permit requirement, Coordination with Merkel and PWA regarding formalizing a 'sign-off' fi.om the agencies that the stream meander as constructed is performing as designed and envisioned, Various project close out items including release of maintenance bonds and remedial punch-list items. Considering the items still left to complete, it is not recommended that the budget for environmental work be adjusted at the present time. Mr. Cliff Swanson April 11, 2002 Page 6 PROJECT MANAGEMENT Ongoing Project Management workscope items that should be a part o£this contract amendment are: · Coordination with CCV and developers regarding the acceleration of the Phase 3 and Eastlake portions of OP to open before year end, · Preparation of encroachment permit applications for OP at the SR-125 R/W, · Support to City staff and coordination of future groundbreaking activities related to the opening of future phases of Olympic Parkway, · Interface issues with SR-125, · Interface issues with Olympic Parkway from Brandywine to 1-805, · Interface issues with the high school site south of Olympic Parkway, · Meetings with City management staff, City Council members and other officials regarding project status, schedule, and policy issues. The current remaining budget for project management is approximately $50,000. We recommend that this budget be supplemented by $75,000 to a total of $125,000 to cover remaining project management activities thru the end of the project. In addition we are currently carrying a 'contingency' budget of approximately $270,000 to cover unforeseen items. At this stage in the project we feel safe in recommending that this contingency be lowered. An amount of $75,000 for unforeseen and/or future authorized work items should be an adequate budget. .SUMMARY The remaining work scope described herein addresses the known project issues facing us now. These items should get us to completion of Olympic Parkway to the SR-125 interchange, barring additional changes in circumstance. The table below summarizes the proposed changes to the project budget. Mr. Cliff Swanson April 11, 2002 Page 7 SUMMARY OF WORK SCOPE ITEMS AND ESTIMATED FEES FOR MMS CONTRACT AMENDMENT NO. 3 TASK Proposed Increase EsL Budget to or (Decrease) Complete PROJECT MANAGEMENT SERVICES (TO $ 75,000.00 $ 125,000.00 COMPLETION) ENVIRONMENTAL $ 0.00 $ 95,000.00* CFD 99-1 $ 100,000.00 $ 200,000.00 PLAn REVIEW $ (85,000.00) $ 102,500.00 CONTINGENCY $ (195,000.00) $ 75,000.00 CFD 97-2 & 97-3 $ (50,000.00) $ 5,000.00 REIMBURSABLE EXPENSES $ (6,500.00) $ 7,000.00 TOTAL $ (161,500.00) $ 609,500.00 *This represents remaining amount in current budget (approximate). The revised budgets reflect an overall budget reduction of over $160,000.00 and also include a contingency of $75,000. Based upon the known tasks remaining on the project, we are confident that these budgets will be adequate to complete the project through close out. Once you have had a chance to review the above, please call us to discuss any comments or questions you may have. Sincerely, SpELF, Inc. HGB:mml X:\1953 - OLYMPIC PARKWAY\1953 - General\Conimct Amendm~nt~Amendm*nt No 3.doc ,tUN. 20. 2002 IO:30AM THE OTAY RA,, ..... NO. 8564 P. 2 EXHIBIT.,. ~ June 20, 2002 THE OTAY RANCH COMPANY Mr. Sohaib ~l-Agha, Senior Civil Engineer City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re: Amendment to MMS Contract for Olympic P~kway Dear Mr. A1-Agha: Please let this letter serve as acknowledgement that we are in support of the proposed contract amendment for M-MS to perform the tasks associated with the completion of Olympic Parkway. MMS's current contract contemplated the opening of the roadway by March of 2002 end as we are all aware, the road will be opened in its entirety by October of this year. We also understand that this amendment is an extension of time only and no additional funds will be authorized. Although, in total, no additional funds are authorized by this contract amendment, we understand that the budget may be reallocated to cover additional CFD 99-1 auditing services as may be necessary. Please call me if you have any questions. Sincerely, Executive Vice President K.A/po RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THIRD AMENDMENT T~ THE AGREEMENT WITH McGILL MARTIN SELF, INC., FOR PROJECT MANAGEMENT, PLAN REVIEW AND FINAiqCIAL SERVICES FOR THE CONSTRUCTION OF OLYMPIC PARKWAY A_ND AUTHORIZING THE MAYOR TO EXECUTE SAID AMENDMENT WHEREAS, the consultant, McGill Martin Self, Inc. (MMS) has been reviewing plans for the construction of Olympic Parkway and the channel easterly of Brandywine and coordinating the Olympic Parkway project including its financing via a community facility district; and WHEREAS, two amendments previously approved by Council increased the scope of the work and the compensation; and WHEREAS, this third amendment will extend the completion of services date to March of 2003, with no additional compensation. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve a. Third Amendment to the Agreement with McGill Martin Self, Inc. for Project Management, Plan Review and Financial Services for the Construction of Olympic Parkway, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Amendment on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt J~Kaheny Director of Public Works C~Attorney J ~ \attorney\ reso \mms. 3 rd THIRD AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND MCGILL MARTIN SELF, INe. FOR PROJECT MANAGEMENT, PLAN REVIEW AND FINANCIAL SERVICES FOR THE CONSTRUCTION OF OLYMPIC P ARKW A Y This third amendment to the agreement ("Agreement") dated for the purposes of reference only, and effective as of the date last executed, and is made with reference to the following facts: RECITALS WHEREAS, the City of Chula Vista, by Resolution 19346 on January 19,1999, approved an Agreement with McGill Martin Self, Inc. to provide professional services in connection with the Olympic Parkway project; and WHEREAS, a first amendment to the Agreement was approved by the City of Chula Vista, by Resolution 19502 on June 22, 1999 which expanded the scope and extended the services of McGill Martin Self, Inc. to June 2000; and WHEREAS, a second amendment to the Agreement was approved by the City of Chula Vista, by Resolution 2000-095 on March 28, 2000 which expanded the scope and extended the services of McGill Martin Self, Inc. to March 2002 (excluding audit services which were expected to extend beyond March 2002); and WHEREAS, there is a need for extending the contract's completion date for services beyond March 2002, to provide services through completion of construction of Olympic Parkway (March 2003); and WHEREAS, the City requires extension of the Consultant's contract to ensure successful construction and completion of improvements for this important roadway segment; NOW,THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: I. Paragraph (D) of Section 8 of Exhibit A of the Agreement is hereby amended to read as follows: D. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work by March 2003 unless otherwise extended in writing by the City Manager. ---- &-/3 2. Paragraph (E) of Section 8 of Exhibit A of the Agreement is hereby amended to read as follows: E. Date for completion of all Consultant services: March 2003 unless otherwise extended in writing by the City Manager. [End of page. Next page is signature page.] 8 ~/'t SIGNATURE PAGE TO THIRD AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND MCGILL MARTING SELF INe. FOR PROJECT MANAGEMENT, PLAN REVIEW AND FINANCIAL SERVICES FOR OL YMIC P ARKW A Y FROM BRANDYWINE TO SRl25 In witness whereof, City and Consultant have executed this Third Amendment to the Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its tenns: Dated: City ofChula Vista By: Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to fonn: John M. Kaheny, City Attorney By: ~ Dated: G. Burrowes, PE #5a::>?'Z .- ß?67/C/9'vT 1J -/5' COUNCIL AGENDA STATEMENT Item q Meeting Date 7/9/02 ITEM TITLE: Resolution Approving a boundary lot line adjustment between a residence and City owned Open Space property at 1701 Horseshoe Court in the Bonita Long Canyon Development, waiving the Grading Deviation Policy No. 460-02 and authorizing the Mayor to execute grant deeds for the boundary adjustment on behalf of the City. REVIEWED BY: City Mana~ (4/Sths Vote: Yes_No.K) SUBMITTED BY: Director of Public Works The property owners at 1701 Horseshoe Co t (Lot 180), Paul and Anne Schaffner, have requested a boundary lot line adjustment for the purpose of adjusting their legal property boundary to the original graded and fenced limits provided by the developer. The proposed boundary adjustment is between residential Lot 180 and city-dedicated open space Lots G and H (Open Space District #14), of Bonita Long Canyon Unit No.3, Map No.11602. Staff is recommending waiving Council Policy 460-02, Grading Deviation Policy, which deals with the sale of City Open Space for private use and approving the Schaffner's boundary adjustment. RECOMMENDATION: That Council approve a boundary lot line adjustment between a residence and City owned Open Space property at 1701 Horseshoe Court in the Bonita Long Canyon Development, waiving Grading Deviation Policy No. 460-02 and authorizing the Mayor to execute grant deeds for the boundary adjustment on behalf of the City. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: Algert Engineering, Inc. on behalf of their client, Mr. Schaffner, submitted an application for a boundary lot line adjustment plat between Lot 180 (Schaffner property) of Map No.11602 and Lots "G" and "H" of Map No. 11602, City Open Space Lots on November 7,2001. Thepurpose of the boundary adjustment is to adjust the legal lot boundary of Lot 180 to the original graded and fenced limits as constructed by the original developer for Bonita Long Canyon Unit No.3. The applicant has indicated that the property has never been modified in terms of relocating fences or performing any grading on the lot. Staff inspected the site and concluded that the property appeared to be in its original shape and size from the original development from 1986. The development grading plans show that the flat pad area of Lot 180 extends beyond the property line q -( (ì Page 2, Item I Meeting Date 7/9/02 to the rear of the lot and stops short of the property line along the easterly side of the lot. Beyond the flat pad area there is a steep uphill slope. The developer placed the wood rail fence at the edge of the flat pad area where the slope begins. This fence has acted as the physical boundary between the private lot and the City Open Space lots since they were created. Mr. Schaffner has constructed a large wooden shed at the back of the property that he believed to be within his legal property limits. Upon discovering that a portion of the shed is encroaching onto City Open Space, he made the request to adjust the property limits to what he assumed to belong to him all along. The lot line adjustment along the easterly side of Mr. Schaffner's lot will result in adding area to the adjacent open space lot since the fence is currently located inside of his property (see Exhibit A). The developer should have prepared a boundary adjustment document before the project was completed to reflect the actual grading limits. City Open Space staff also inspected the site and determined that all the open space landscaping and irrigation systems are located outside the fence line and that the boundary adjustment would not affect current maintenance activities in the area. The boundary adjustment would result in 920 square feet of open space land (portion of Lot "G") being added to Mr. Schaffner's property and 645 square feet of Mr. Schafner's property being added to the adjacent open space lots. The end result of this land exchange would be an approximate net loss of 275 square feet of property to the City open space. Staff has determined that City Council Policy 460-02, the Grading Deviation Policy, does not apply in this situation. That policy was adopted to provide the procedures and criteria to be used to identify and sell City dedicated open space property in existing established neighborhoods. The policy lays out the following specific requirements that must be met before the homeowner is able to purchase the property from the City: I) Site must be found to be eligible for disposition and sale. 2) Obtain the support of the homeowners who comprise the affected open space district by means of a mail-in ballot. 3) Obtain approval from the City's Environmental Review Coordinator by means of a suitable environmental review of the area considered "saleable". 4) Submit an appraisal from a qualified real estate appraiser for the property to be transferred. 5) Prepare proper legal descriptions of the properties involved and submit adjustment plat for City approval. Staffbelieves the Grading Deviation Policy was developed to allow residents to obtain leftover level pad areas within dedicated Open Space contiguous to some properties in order to increase the usable area of their rear yards. The grading deviation of the Schaffner's property is ofa different nature q-z Page 3, Item 1 Meeting Date 7/9/02 than those targeted by this policy. The property does not have adjacent leftover level areas within Open Space. The portion of the property encroaching into open space appears to have always been meant to be a part of the residential lot. Therefore, staff recommends waiving the Grading Deviation Policy No. 460-02 for the Schaffner's boundary adjustment with adjacent open space property for the following reasons: I) Developer failed to process boundary adjustment. It appears the developer knew of the boundary discrepancy because the grading plans reflect the current grading of the lot, but the subdivision map was never corrected. 2) The portion ofthe open space property to be adjusted was never maintained by the City as part of the open space lot. 3) Developer graded and fenced the lot in its current configuration making it appear that the fenced property marked the legal lot limits. 4) The City will receive in exchange 645 square feet of Schaffner's property that is currently being maintained as open space. The Environmental Review Coordinator has determined that the proposed project is exempt pursuant to CEQA, Section 15305, Class (a), Minor alterations in Land Use Limitations. Engineering staff is processing a boundary adjustment plat and a Grant Deeds (Exhibit "B") for the transfer of City open space land to the Schaffner's and for the transfer of a portion of the Schaffner's property to the City for open space purposes. If City Council approves the resolution, then the attached boundary adjustment plat and Grant Deeds will be executed and recorded with the County Recorder. FISCAL IMPACT: Since Grading Deviation Policy No. 460-02 was waived, the resident applying for a boundary adjustment was not required to obtain an appraisal nor pay for the portions of city owned Open Space property being acquired. Attachments: Exhibit "A" - Boundary adjustment areas Exhibit "B" - Grant deeds reflecting the property transfers BVH q-3 . . E - -_0- HOifSts}j; COlJRì O~~~~ " / / Qoo ~ / / /2 / . 26 SO FT .ss,.:'¡s . "'~$O' <>- (' " ,,~ C~"- ~~~ \:.'¡. ,- - PAR'¡ : ."..2;.... , ~'. N29'OZ'39nE 11.90' S PARCEL -B" ~; p-. V)~ éi; ! (.J~·-r' ~ ..:.....' . j ~ .1'.\ r, ¡\¡j ;...\ r-- . J ~ ~ ~ r- .:-,-', : ;-\ : -1., "I ~ U__J " 0"0 00 Pu> a..,. o -'~ - .' ~_. -_... -" "', , 1V7J'J". ; < 22-w 70.59' ", '~, '" ''/1 't1$?G.I \).<-5 ¿s ",. ~os~ A=!> ~ ÿ,.... $Ij~ \!\ (" ?~~ 0~~ eo'?^,- ry C) <ö v.C)~ /!fo) ,-0 :\\~G ~ " ~<ö q¡' '<J:2 < 1~'}.\S C~) / \: r~~ DETAIL SCALE:'"=30' q-If <J #:.s- q;~ ~. ð9;-~' ð<:- RoO 'V' à&\.. ~ G 00 ~~ .i> Recording requesled by and please return 10: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 . . APN 594-361-12-00 C.V. File No. ER-316 Grant Deed (This Deed being filed for Lot Line Adjustment purposes only) FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION (Grantor), represents that, as the owner of the herein-described real property, Grantor hereby grants to, PAUL 1. SCHAFFNER AND M. ANNE SCHAFFNER. HUSBAND AND WIFE AS JOINT TENANTS the following real property situated in the City of Chula Vista, County of San Diego, State of California and more particularly described as follows: SEE ATTACHED: EXHIBIT' A' FOR LEGAL DESCRIPTION EXHIBIT '8' FOR PLAT The purpose ofthis document is to convey a portion of Open Space Lot G, map Number 11602, filed in the office of the County Recorder of San Diego County on September 2, 1986, and combine with Lot 180, Map Number 11602. Signed this day of , 2002 Grantor Signature: The Honorable Mayor of the City of Chula Vista Shirley Horton (Notary Acknowledgment required for each signatory.) J:\EngineerlPERMlTSlErlER316grantdeed.doc q-6 Recording requested by and please return to: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 . . APN 594-361-12-00, 594-110-12-00, 594-361-37-00 c.v. File No. ER-3l6 Grant Deed (This Deed being filed for Lot Line Adjustment purposes only) FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, PAUL L SCHAFFNER AND M. ANNE SCHAFFNER, HUSBAND AND WIFE AS JOINT TENANTS (Grantor), represents that, as the owner of the herein-described real property, Grantor hereby grants to, THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION the following real property situated in the City ofChula Vista, County of San Diego, State of California and more particularly described as follows: SEE ATTACHED: EXHIBIT' A' FOR LEGAL DESCRIPTION EXHIBIT 'B' FOR PLAT The purpose ofthis document is to convey a portion of Lot 180, map Number 11602, filed in the office of the County Recorder of San Diego County on September 2, 1986, and combine with Open Space Lots G and H, Map Number 11602. Signed this day of , 2002 Grantor Signature: Paul L Schaffner Grantor Signature: M. Anne Schaffner (Notary Acknowledgment required for each signatory.) J :\Engineer\PERMITS\Er\ER316grantdeed-Schaffner.doc q-h RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A BOUNDARY LOT LINE ADJUSTMENT BETWEEN A RESIDENCE AND CITY OWNED OPEN SPACE PROPERTY AT 1701 HORSESHOE COURT IN THE BONITA LONG CANYON DEVELOPMENT, WAIVING THE GRADING DEVIATION POLICY N0.460-02, AND AUTHORIZING THE MAYOR TO EXECUTE GRANT DEEDS FOR THE BOUNDARY ADJUSTMENT ON BEHALF OF THE CITY WHEREAS, the property owners at 1701 Horseshoe Court (Lot 180), Paul and Anne Schaffner, have requested a boundary lot line adjustment for the purpose of adjusting their legal property boundary to the original graded and fenced limits provided by the developer; and WHEREAS, the proposed boundary adjustment is between residential Lot 180 and and city-dedicated open space Lots G and H (Open Space District #14), of Bonita Long Canyon Unit No. 3, Map No 11602; and WHEREAS, staff is recommending waiving Council Policy 460-02, Grading Deviation Policy, which deals with the sale of City Open Space for private use and approving the Schaffner's boundary adjustment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a boundary lot line adjustment between a residence and City owned Open Space property at 1701 Horseshoe Court in the Bonita Long Canyon Development, waiving the Grading Deviation Policy No. 460-02. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute 9rant deeds for the boundary adjustment on behalf of the City. Presented by Approved as to form by Director of Public Works Ci{y Attorney [J:~,TrORNEY~RESO\boundary Lot Line Adjustment (June 27, 2002 (9:34AM)] COUNCIL AGENDA STATEMENT Item ~ 0 Meeting Date: 7/9/02 ITEM TITLE: Resolution Rejecting bids for the Connoley Park Renovation (PR-215), Feaster School Playground Renovation (PR-222) and Tiffany, Los Ninos, Valle Lindo and Lancerlot Parks Playground Renovation (PR- 225/PR-228) Projects in the City of Chula Vista, California and directing the Director of Public Works to re-advertise and bid the projects SUBMITTED BY: Director ofPublic~..~. __W°rksfiSXk~'~/~/~ REVIEWED BY: CityMan~'g~)~...~~Y] (4/5thsVote: Yes NoX) At 2:00 p.m. on April 17, 2002, in Conference Room 1, the Director of Public Works received sealed bids for the "Connoley Park Renovation (PR-215), Feaster School Playground Renovation (PR-222) and Tiffany, Los Ninos, Valle Lindo and Lancerlot Parks Playground Renovation (PR- 225/PR- 228)" Projects. The general scope of the projects consists of adding new play equipment, play surfacing, drainage improvements, irrigation, landscaping, traffic control and other miscellaneous items of work as shown on the plans. RECOMMENDATION: That Council reject the bids and direct staff to re-advertise the "Connoley Park Renovation (PR-215), Feaster School Playground Renovation (PR-222) and Tiffany, Los Ninos, Valle Lindo and Lancerlot Parks Playground Renovation (PR-225/PR-228) projects." BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The CIP program includes funds appropriated for the upgrade of various parks throughout the City. The parks included in this project were Connoley Park, Feaster School Park, Tiffany Park, Los Ninos Park, Valle Lindo Park and Lancerlot Park. The work in each of the parks is summarized below: 1. ConnoleyPark (PR-215) The work to be done consists of adding new retaining walls, paving, play equipment, play surfacing, drainage improvements, site furnishings, irrigation and landscaping at Connoley Park, located on Cormoley Avenue south of Orange Avenue. The work also includes removal and disposal of existing items, earthwork and grading, storm drainage system, masonry retaining walls, site concrete including walkways, mowcurbs and footings, site furnishings, site landscaping, site irrigation, play equipment and safety surfacing, traffic control, Page 2, Item I0 Meeting Date: 7/9/02 restoration of removed or damaged improvements and other miscellaneous work as shown on the drawings. 2. Feaster School Park (PR-222) The work to be done consists of adding new play equipment, play surfacing and renovating/upgrading the existing playfield area at Feaster School along Flower Street just west of Broadway. The work includes removal and disposal of existing items, earthwork and grading, asphalt paving including aggregate base, site concrete including mowcurbs and footings, fencing, site landscaping, site irrigation, play equipment and safety surfacing, traffic control, restoration of removed or damaged improvements and other miscellaneous work as shown on the drawings. Based on input from Feaster School parents, teachers, and principal at the Council meeting of June 25, 2002, staff has been meeting with the Feaster School and district staff to accelerate this project and look at solutions to reduce the cost. Please refer to information memo from City Manger. At this meeting, the final recommended solution to keep this project moving has not been fully developed, but it is proposed that the City: 1. Immediately issue a purchase order to a fence company to install the 10 fi. high fence along the trailer park boundary. 2. Immediately order playground equipment which should be delivered and installed by this fall. 3. Re-scope the landscaping work to save as much turf and irrigation equipment as feasible and have district hire a landscape contractor this fall to plant and irrigate the remaining field. 4. Keep the existing decomposed granite running track, but provide redwood headers vs. a concrete curb along its edge. 5. Develop lighting that is currently much less costly than the $58,000 currently designed Staff will return with a status report as this project progresses. 3. Tiffany, Los Ninos, Valle Lindo and Lancerlot Parks The work to be done consists of adding new paving, play equipment, play surfacing, play area curbs, fencing, drainage improvements and site furnishings at the following parks: Page 3, Item ID Meeting Date: 7/9/02 Tiffany Park between Elmhurst Street and East "H" Street, east of Otay Lakes Road Eos Ninos Park at Max Avenue and Teal Street Valle Lindo Park at Sequoia Street and Brandywine Avenue Lancerlot Park at the end of"K" Street west of Colorado Avenue The work includes removal and disposal of existing items, earthwork and grading, storm drainage system, site concrete including walkways, mowcurbs and footings, site furnishings, play equipment and safety surfacing, traffic control, restoration of removed or damaged improvements and other miscellaneous work as shown on the drawings. The City received bids from two contractors for the Connoley Park Renovation Project as follows: CONTRACTOR BID AMOUNT 1. Phillips National, Inc., Solana Beach, California $248,350.00 2. 3-D Enterprises, San Diego, California $257,000.00 The low bid by Phillips National, Inc. is above the Engineer's estimate of $160,036.51. CDBG funds available for this project are $195,579.00. The City received bids from three contractors for the Feaster School Park Project as follows: CONTRACTOR BID AMOUNT 1. Byrom-Davey, Inc., San Diego, California $297,452.00 2. Phillips National, Inc., Solana Beach, California $312,831.00 3. 3-D Enterprises, San Diego, California $317,000.00 The low bid by Byrom-Davey, Inc. is above the Engineer's estimate of $215,949.30. CDBG funds available for this project are $72,392.00 and School District Funds are $150,000.00, with a total of $222,392.00. The City has expended $78,600 in design consultant and staff costs to date. As discussed above, this is a joint project between the City (CDBG) and the School District. Bids are being rejected because the amounts are so far above budget that the scope needs to be reconsidered. Page 4, Item IO Meeting Date: 7/9/02 The City received bid from one contractor for the Tiffany, Los Ninos, Valle Lindo and Lancerlot Parks Project as follows: CONTRACTOR BID AMOUNT 1. Phillips National, Inc., Solana Beach, California $546,158.00 The low bid by Phillips National, Inc. is above the Engineer's estimate of $262,544.00. State Grants funds available for this project (Tiffany Park) are $83,897.00; CDBG and PAD funds available for this project (Los Ninos, Valle Lindo, Lancerlot Parks) are $54,949.00 and $193,066.00 respectively. Included in these CDBG and PAD funds are monies for the maintenance and construction of other parks. In order for the City to complete the projects in a fiscally responsible manner while at the same time accomplishing the projects' objectives, it is necessary to reject the bids for the following reasons: 1. There were only two bids received for the construction of the Connoley Park project, and one bid for the four park projects (Tiffany, Los Ninos, Valle Lindo, and Lancerlot). By re-bidding and recruiting additional participants, the City will increase the possibility of obtaining lower bid prices that would keep the projects within budget. 2. Re-bidding the projects enables the City to revise the projects' scopes/plans to provide for more cost effective projects. This would also allow greater flexibility in the use of budgeted funds. 3. The Feaster School Park project is a joint project between the School District and the City and needs to be re-scoped due to high costs and inadequate funding. Therefore, based on the above stated reasons, staff recommends that Council reject all bids and direct staff to re-advertise the work for the Connoley Park Renovation (PR-215), and Tiffany, Los Ninos, Valle Lindo and Lancerlot Parks Playground Renovation (PR-225/PR-228) projects. For Feaster School Park, staff will immediately order fencing and playground equipment. Staff will then work in conjunction with the School District and re-scope the project to speed it up and lower costs. FISCAL IMPACT: There will be minimum staff costs to re-bid the projects. J:\Engineer\aG ENDA\PR215-222-225-228-re j-bid.doc RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR THE CONNOLEY PARK RENOVATION (PR-215), FEASTER SCHOOL PLAYGROUND RENOVATION (PR-222) AND TIFFANY, LOS NINOS, VALLE LINDO AND LANCERLOT PARKS PLAYGROUND RENOVATION (PR-225/PR-228) PROJECTS 1N THE CITY OF CHULA VISTA, CALIFORNIA AND DIRECTING THE DIRECTOR OF PUBLIC WORKS TO RE- ADVERTISE AND B1D THE PROJECTS WHEREAS, at 2:00 p.m. on April 17, 2002, in Conference Room 1, the Director of Public Works received sealed bids for the Connoley Park Renovation (PR-215), Feaster School Playground Renovation (PR-222) and Tiffany, Los Ninos, Valley Lindo and Lancerlot Parks Playground Renovation (PR-225/PR-228) projects; and WHEREAS, there were only six bids received for the construction of the three projects; and WHEREAS, the City received bids fi.om two contractors for the Connoley Park Renovation Project as follows: Phillips National, Inc., Solana Beach, Ca $248,350.00 3-D Enterprises, San Diego, Ca. $257,000.00 WHEREAS, the low bid by Phillips National, Inc. is above the Engineer's estimate of $160,036.51; and WHEREAS, the City received bids fi.om three comractors for the Feaster School Park Project as follows: Byrom-Davey, Inc., San Diego, Ca. $297,452.00 Phillips National, Inc., Solana Beach, Ca. $312,831.00 3-D Enterprises, San Diego, Ca. $317,000.00 WHEREAS, the low bid by Byrom-Davey, Inc. is above the Engineer's estimate of $215,949.30; and WHEREAS, the City received a bid fi.om one contractor for the Tiffany, Los Ninos, Valle Lindo and Lanceflot Parks Project as follows: Phillips National, Inc. Solana Beach, Ca. $546,158.00 WHEREAS, the bid by Phillips National, Inc. is above the Engineer's estimate of $262,544.00; and WHEREAS, re-advertising the projects and recruiting additional participants into the bidding process increases the possibility of obtaining lower bid prices; and WHEREAS, re-bidding the projects enables the City to amend the projects' scope of work in order to increase the possibility of finding a responsive bidder while at the same time accomplishing the projects' major objectives; and WHEREAS, in order for the City to complete the projects in a fiscally responsible manner, it is necessary to reject the bids and obtain future bids more consistent with stall's original cost estimates for the projects; and WHEREAS, based on the above stated reasons, staff recommends Council reject all bids and direct staff to re-advertise the work for all of the projects. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby reject bids for the "Connoley Park Renovation (PR-215), Feaster School Playground Renovation (PR-222) and Tiffany, Los Ninos, Valley Lindo and Lancerlot Parks Playground Renovation (PR-225/PR-228) Projects in the City of Chula Vista, California. BE IT FURTHER RESOLVED that staff is hereby directed to re-advertise the work for all of the projects. Presented by Approved as to form by John P. Lippitt John M. Kaheny Director of Public Works City Attorney J:/attorney/reso/bid reject park renovation 2 COUNCIL AGENDA STATEMENT Item Meeting Date 07/09/2002 ITEM TITLE: Resolution of the City Council of the City of Chula Vista delegating to the Director of Finance the power to initiate appropriate collection actions against delinquent special assessments within Assessment District 94-1 (Eastlake Greens II), including the ability to order foreclosure actions SUBMITTED BY: Assistant City Manager, Pow~lC-~' REVIEWED BY: City U (4/5ths Vote: Yes __ No X ) Assessment District 94-1 (Eastlake Greens II) requires the City Council to initiate collection proceedings (including foreclosure) against those property owners delinquent in paying the special assessment. This resolution would delegate that authority to the Director of Finance, thereby making Distdct 94-1 consistent with other assessment districts in the City. RECOMMENDATION: That Council delegate authority to the Finance Director to pursue collection action against delinquent special assessments in Assessment District 94-1 including the ability to order foreclosure proceedings. BOARDSlCOMMISSlONS RECOMMENDATION: Not Applicable. DISCUSSION: Assessment District 94-1 was formed to fund improvements to South Greensview Drive, Hunte Parkway and Orange Avenue, including street improvements, street lighting, landscaping, utilities and underground improvements benefiting EastLake Greens Phase I1. Currently, there are 84 parcels within Assessment District 94-1 in delinquent status, including three (3) which may end up in foreclosure proceedings. Meeting Date 07/09/2002 Unlike other assessment districts, the bond indenture for Assessment District 94- 1 states that: the legislative body of the City of Chula Vista hereby covenants that upon default of any assessment payment due, it will cause the Superior Court foreclosure proceedings to be brought within one hundred fifty (150) days of such default and thereafter diligently prosecute to completion such proceedings. All other assessment districts in the City of Chula Vista reference the Finance Director, instead of the City Council, as the authority to request and cause the City's trustee for the bondholders to foreclose on the delinquent special assessments which the Finance Director determines should or must be foreclosed upon in order to comply with the covenants relating to the bonds. Approving this change would delegate the authority to pursue foreclose proceedings to the Finance Director, which will be consistent with other assessment districts in the City. FISCAL IMPACT: Other than the staff time saved by not having to seek City Council approval on any subsequent foreclosures, there is no fiscal impact. RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DELEGATING TO THE DIRECTOR OF FINANCE THE POWER TO INITIATE APPROPRIATE COLLECTION ACTIONS AGAINST DELINQUENT SPECIAL ASSESSMENTS WITHIN ASSESSMENT DISTRICT 94-1 (EASTLAKE GREENS II), INCLUDING THE ABILITY TO ORDER FORECLOSURE ACTIONS WHEREAS, the City Council of the City of Chula Vista, California, pursuant to Division 12 of the California Streets and Highways Code, and the Municipal Improvement Act of 1913 (the "1913 Act") has levied special assessments upon lands within the Assessment District 94-1 described in Resolution of Intentions adopted for said improvements, (hereinafter "District"); and WHEREAS, said proceedings provide for the issuance of bonds pursuant to the Improvement Bond Act of 1915, and said bonds were previously issued; and WHEREAS, collection of all special assessments levied pursuant to said proceedings was and is intended to provide for the timely payment of all amounts of principal and interest due and payable pursuant to the terms of the above referenced bonds; and WHEREAS, to ensure timely payment of the special assessments, the bond indenture requires the City to initiate foreclosure proceedings within 150 days upon default by a property owner of any assessment payment due; and WHEREAS, from time to time, property owners within the District may become delinquent in the payment of said special assessments, thereby necessitating the institution of foreclosure actions with respect to such parcels. NOW THEREFORE, the City Council of the City of Chula Vista does hereby resolve as follows: Section 1. That the above recitals are all true and correct. Section 2. That it is hereby ordered that the City Finance Director is authorized to cause all delinquent special assessments within the Distdct to be collected by an action or actions brought in the Superior Court to foreclose the liens thereof in accordance with Government Code Section 53356.1. Section 3. That the City Council hereby orders the City Finance Director to review the delinquencies in the District from time to time, and when 1 appropriate said Finance Director shall comply with the covenants relating to the bond issuance and request and cause the City's trustee for the bondholders to foreclose on the delinquent special assessments. Presented by Approved as to form by Robert Powell John M. Kaheny Assistant City Manager City Attorney J:lattorney/reso/collection action 2 COUNCIL AGENDA STATEMENT Item / ~ Meeting Date 07/09/02 ITEM TITLE: Resolution Accepting the California Council for the Humanities' Reading the Grapes of Wrath grant awarded to the Chula Vista Public Library, appropriating unanticipated funds of $1,000, and amending thc FY2002-2003 Library Department budget. SUBMITTED BY: Deputy City Manager Paln~,~ ~R~eV~?V~sYaY~ubli~iL~brMa~~t~i~h~OViilf~,, [ J/Il . foYre' ~e; uNm°aniti)es (CCH) for $1,000 in grant funds to present aReading the Grapes of Wrath film and discussion series for the Chula Vista community in Fall 2002. The Library received notification recently of the grant award. STAFF RECOMMENDATION: That Council accepts the grant, appropriates the unanticipated funds, and amends the Library Department's FY2002-2003 budget. BOARDS/COMMISSIONS RECOMMENDATION: At its June 19, 2002 meeting, the Library Board of Trustees voted to support the Library's grant application. DISCUSSION: On the occasion of John Steinbeck's 100th birthday anniversary, the California Council for the Humanities (CCH) inaugurated the Reading the Grapes of Wrath project. It is designed to strengthen California communities by bringing people together to read John Steinbeck's classic novel, discuss the parallels between the book and today's issues, and share stories about their experiences as Californians. The CCH is working with the California Center for the Book, with support from the California State Library, to promote and discuss this significant work of literature throughout California. It is the first phase of the CCH's California Stories Project, a three year statewide reading effort to tell the story of today's California. The Library will participate, along with 141 other California public libraries, by presenting with the grant funds a series of programs, discussions, and activities during the months of September and October. These include: r2 Book discussions by the Friends of the Library, Library Staff at Civic Center, EastLake and South Chula Vista branches, and EastLake High School classroom discussion [a Grant provided multiple copies of Grapes of Wrath in English and Spanish Page 2, Item Meeting Date 07/09/02 Film and discussion led by the Director of Cinema at the Museum of Photographic Arts Musical performance of Depression Era folk songs by the San Diego Folk Music Society Food drive at all three branches for migrant workers in the county Displays at all three branches exploring the farm worker in Chula Vista history and the evolution of how migrant lives have changed or not in 60 years n Lecture by a local scholar on the California experience FISCAL IMPACT: The Library's Community Outreach division is receiving $1,000 in new revenue from the California Council for the Humanities. The entire amount will need to be appropriated for expenditures to the Library's Community Outreach budget. RESOLUTION NO. 2002- RESOLUTION OF THE~CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE CALIFORNIA COUlqCIL FOR THE HUMANITIES' READING THE GRAPES OF WRATH GRANT AWARDED TO THE CHULA VISTA PUBLIC LIBRARY, APPROPRIATING UND-NTICIPATED FUN-DS OF $1,000, AND AMENDING THE FY2002-03 LIBRARY DEPARTMENT BUDGET WHEREAS, the Chula Vista Public Library applied to the California Council for the Humanities (CCH) for $1,000 in grant funds to present the Reading the Grapes of Wrath film and discussion series for the Chula Vista community in Fall 2002; and WHEREAS, the Library received notification recently of the grant award; and WHEREAS, at its June 19, 2002 meeting, the Library Board of Trustees voted to support the Library's grant application. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept the California Council for the Humanities' Reading the Grapes of Wrath grant awarded to the Chula Vista Public Library. BE IT FURTHER RESOLVED that the City Council hereby appropriates unanticipated funds of $1,000 and amends the FY2002-03 Library Department Budget. Presented by Approved as to form by David Palmer John M~ K~heny~ Deputy City Manager City Attorney [J:~ORN E~mso\Gmnt Grapes of Wrath (June 26, 2002 (3:28PM)] ¡JOh1o.~Y' 's ?l~ y¡~Jvf.e. - p.u- .s,d ¡v(ornfr COUNCIL AGENDA STATEMENT ITEM / '3 MEETING DATE 7/9/02 ITEM TITLE: Resolution Amending the FY03 Budget to Increase the Salary Range for the Middle Management Classification of Educational Services Manager to an Annual E-Step Salary of $88,958. SUBMITTED BY: Director of Human Resources (:.l; REVIEWED BY: City Manager (4/5th Vote: Yes K... No--> SUMMARY: The department is requesting Council approval to upgrade the salary for the Educational Services Manager to better reflect the complexity and liability associated with the position. Over the past four years, the programs and services managed by this position have significantly increased. RECOMMENDATION: Council approves Resolution increasing the salary range for the classification of Educational Services Manager to an annual E-Step of$88,958. BOARD/COMMISSION RECOMMENDATION: N/ A DISCUSSION: The classification of Educational Services Manager was created in 1998 in preparation for the implementation of the Stretch and Dash Programs. At that time, no one fully realized the ultimate breadth of the programs or could forecast the full range of duties that would ultimately become the basis for the classification. As a result, the salary was originally set at what was thought to be appropriate given the description at that point. Since then, the programs have grown both in sophistication and number of participating schools, and the duties have become much more clearly defined. The following is a chronological list of how the programs and services managed by this position have grown and developed over the past four years. It is now possible to compare this classification to other Management positions and set the salary accordingly. FY 1998-99 · Developed pilot STRETCH program · 6 STRETCH sites, approx. 60 kids/site · After school program budget (incl. old rec. program) approx. $580,000 · Recruited, hired, trained, supervised staff of 24 · Oversaw Literacy Team Center (2 FT staff, several PT, >60 volunteers) 1 13 -I MEETING DATE 7/9/02 FY 1999-00 · Expanded STRETCH to 8 sites, approx. 60 kids/site · Launched new DASH Program at 12 schools, approx. 50-60 kids/site · Recruited, hired, trained, supervised total staffof56 plus 2 FT supervisors · Literacy: Oversaw Literacy Team Center (2 FT staff, several PT, >60 volunteers); · Managed new Even Start family literacy grant ($256,000) FY 2000-01 · STRETCH ~ 8 sites, approx. 60 kids/site · Expanded DASH to 14 sites, approx. 50-60 kids/site · Recruited, hired, trained, supervised total staff of 66 plus 2 FT supervisors · Literacy: Oversaw Literacy Team Center (3 FT staff, several PT, >60 volunteers) · Managed Even Start grant; launched new LEAP Into Reading curriculum/after school (library) tutoring program FY 2001-02 · STRETCH ~ 8 sites, approx. 60 kids/site · Expanded DASH to 18 sites, approx. 50-60 kids/site · Recruited, hired, trained, supervised total staff of 74 plus 3 FT supervisors · After School Budget approx. $1,207,000 · Literacy: Oversaw Literacy Team Center (3 FT staff, several PT, >60 volunteers) · Managed Even Start; new ELLI grant ($21,000), LEAP program, launch new Baby Time program w/Children's Services · Literacy (incl. grants) budget totaling $240,000; Even Start budget of $220,000 FY 2002-03 · STRETCH ~ 7 sites, approx. 60-80 kids/site · Expanded DASH to 21 sites, approx. 50-60 kids/site · Recruit, hire, train, supervise total staff of 82 plus 3 FT supervisors · Al~er School Budget: $1,272,715 (serves approx. 1,500 children per day) · Literacy: Oversee Literacy Team Center; manage Even Start, LEAP, new ELLI grant ($108,000) · Literacy (incl. grants) budget totaling $349,000; Even Start budget $200,000 · TOTAl. fiscal responsibility and oversight for $1,821,700 The library has applied for a large Prop l0 grant ($400,000 +) for 02-03 to launch a comprehensive, multi-branch program for children 0-5 and their parents. If awarded in August, much of the responsibility for developing and launching this new program will lie with the Ed. Services Manager. FISCAL IMPACT: The fiscal impact of this salary range increase will be $18,757 for FY03, and can be absorbed by the Library Department budget. 2 /g-2 RESOLUTION NO. 2002- RESOLUTION OF THE~CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY03 BUDGET TO INCREASE THE SALARY R3LNGE FOR THE MIDDLE MANAGEMENT CLASSIFICATION OF EDUCATIONAL SERVICES MANAGER TO AN ANNUAL E-STEP SALARY OF $88,958 WHEREAS, the classification of Educational Services Manager was created in 1998 in preparation for the implementation of the Stretch and Dash Programs; and WHEREAS, at that time, no one fully realized the ultimate breadth of the programs or could forecast the full range of duties that would ultimately become the basis for the classification; and WHEREAS, as a result, the salary was originally set at what was thought to be appropriate given the job description; and WHEREAS, the programs have grown both in sophistication and number of participating schools, and the duties have become much more clearly defined; and Vv~HER~AS~ the position now compares to other Management positions and staff recommends setting the salary accordingly. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the FY03 budget to increase the salary range for the Middle Management classification of Educational Services Manager to an annual E-step of $88,958 effective 6/28/02. Presented by Approved as to form by Candy Emerson John' M.- Kah~-n~ ~ Director of Human Resources City Attorney IH:\HOME\ATTORNEY\RESO\ Educational Services Manager {June 26, 2002 (2:37PM)] / .5 -3 COUNCIL AGENDA STATEMENT Item /~ Meeting Date 7/09/02 ITEM TITLE: Resolution Amending the FY03 budget by reclassifying one Librarian 1I to Librarian llI. SUBMITTED BY: Director of Human Res~e~e~ REVIEWED BY: City Man~'~) ~~/ (4/5th Vote: Yes X No Council is being asked to amend the FY0~budget by approving the reclassification that is being recommended as the result of a request to review a Librarian II position. RECOMMENDATION: Council adopt the resolution approving the reclassification of a Librarian II to Librarian Ill to be effective pay period beginning July 12, 2002, and amending the FY03 budget. BOARD/COMMISSION RECOMMENDATION: N/A Position: Librarian II (CVEA) Department: City Libraries Recommendation: Reclassification of a Librarian II to Librarian HI as a result of increases in the level and complexity of duties and responsibilities currently assigned. Salary placement will be $54,962.33 (E). DISCUSSION.: The incumbent is currently classified as Librarian II and works in the collection development section of the city libraries system. Previously, a Librarian HI (who then became a Senior Librarian) worked in this section and was responsible for all areas related to the collection development section. In August 2001, the Senior Librarian was reallocated to run the technical services division, however, work demands continued in the collection development section. This situation resulted in the incumbent, a Librarian II, assuming the leadership role as the responsibility for a number of functions shifted to her. Some of the new duties that incumbent has undertaken include the responsibility for the collection development functions of the technical services, primary liaison for book vendors, budgetary decisions, as well as decisions on the libraries materials collection. The incumbent also oversees electronic database accounts, information sharing, and is responsible for deciding what library materials are to be re-allocated or discarded. In addition, the incumbent supervises and evaluates five staffmembers and is involved in various programs, activities, and committees with other agencies, divisions, private groups, and City departments. As far as the structure of the city libraries system, the collection development section is the same as the cataloging section, which is managed by a Librarian HI. Both sections report to the Senior Librarian of Technical Services. Page 2, Rem Meeting Date 7/9/02 Based on the duties described, as well as the extensive review and comparisons of current job specifications, reclassification of the incumbent from a Librarian II to Librarian 11I is recommended. FISCAL IMPACT: The fiscal impact of this reclassification will be $5,754 for FY03, and can be absorbed by the Library Department budget. RESOLUTION NO. 2002- RESOLUTION OF THE' CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY03 BUDGET BY RECLASSIFYING ONE LIBRARIAN II TO LIBRARIAN III WHEREAS, the incumbent is currently classified as Librarian II and works in the collection development section; and WHEREAS, previously, a Librarian III (who then became a Senior Librarian) worked in this section and was responsible for all areas related to the collection development section; and WHEREAS, due to a reallocation of the Senior Librarian, the Librarian II has undertaken the responsibility for the collection development functions of the technical services, primary liaison for book vendors, budgetary and library materials collection decisions; and WHEREAS, in addition, she oversees electronic database accounts and information sharing and supervises five staff members; and WHEREAS, as a result of increases in the level and complexity of duties and responsibilities, Human Resources recommends reclassifying a Librarian II to Librarian III at an E-step salary placement of $54,962.33. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the FY03 budget by reclassifying one Librarian II to Librarian III effective July 12, 2002 at an E-step salary of $54,962.33. Presented by Approved as to form by Candy Emerson John M. Kahan' ~ Director of Human Resources City Attorney [M:\HOME\ATTORNEY\RESO\ Librarian II reclass IJune 27, 2002 COUNCIL AGENDA STATEMENT MEETING DATE 7/09/02 ITEM TITLE: Resolution Approving Extension of the Military Leave Policy Approved by Council October 9, 2001, For All Classified and Unclassified Employees through December 31, 2002. SUBMITTED B.Y.: Candy Emerson, Dire~,~tuman Resources~_-) . oRan E~c~t~WEmbTr ~'2O0~'~tYr¢ s~~i~T~c id\er authorizing th~4m/ili~a~V~toe~:~ military reservists, in the aftermath of the terrorist attacks. As a result, the City Council approved a temporary Military Leave Policy to insure that City employees who are called to active duty maintain their current level of pay and benefits. RECOMMENDATION: Approve an extension to the aforementioned Military Leave Policy through December 31, 2002. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: Recent City Historv On October 9, 2001, the City Council approved a temporary "Military Leave Policy" in response to the terrorist attacks on 9/11 and subsequent action by President Bush. This policyprovides for apaid leave of absence f~om work for employees who were ordered to active military duty, with the paid leave offset by all gross military pay and allowances. Employees are not eligible to receive this paid leave for the 30 days that they receive paid military leave pursuant to the California Military & Veterans Code. State and Federal Law The City's current policy governing treatment of employees on military leave states that "such leave is granted in accordance with the provisions of applicable State and Federal laws ". Public employers in California must comply with both state and federal law for employees who serve in the military. Ia Caiifomia, the Military & Veterans Code §389 et seq. sets forth the employer obligations regarding the rights and benefits of employees serving in the armed forces. Employers must also comply with the federal Uniformed Services Employment and Reemployment Rights Act of 1994. 38 U.S.C. §§4301 etseq. The California Military and Veterans Code defines military leave as "leave of absence fi`om public employment to engage in ordered military duty for a period which by the order is not to exceed 180 calendar days, including travel time for purposes of active military training, encampment, naval 1 ITEM MEETING DATE 7/09/02 cruises, special exercises or like activity as a member of the reserve corps or force of the armed fomes of the United States, or the National Guard, or the Naval Militia." Military & Veterans Code §389(a). The federal government defines military leave as "the performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty for training, full-time National Guard duty, and a period for which the person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform any such duty." 38 U.S.C. §4303(13). Under federal law, employers do not have any obligation to continue to pay a salary to employees on military leave. Under California law, any public employee who is on temporary military leave, and who has been in the service of the public agency for at least one year, is entitled to receive his or her salary for the first 30 calendar days of such leave provided that the period of ordered duty does not exceed 180 calendar days. Neither federal nor state law requires an employer to continue payment for health insurance coverage for employees who are on military leave. However, employers are not restricted from voluntarily providing health care insurance for employees and their dependents while the employee is on military leave. Temporary Policy Approved by Council Definition: Military leave during this period is paid leave of absence from work granted to employees who have been ordered to active military duty as a result of the terrorist attacks in the United States on September 11, 2001. Eligibility: Employees who arc members of the reserve corps of the Armed Forces of the United States or the National Guard or the Naval Militia who have been ordered to active military duty as a result of the terrorist attacks on thc United States on September 11,2001 are eligible for paid military leave. Employees shall not be eligible for this paid leave for the 30 days that they receive paid military leave pursuant to existing MOUs, City Policy and the California Military and Veterans Code. Duration: This leave is provided as temporary relief from financial hardship due to loss of pay and benefits for employees on active military duty as a result of the aforementioned terrorist attacks. This paid leave shall commence on the date which California Military and Veterans Code benefits are exhausted. This paid leave shall cease on the date the employee is officially released from active military duty or December 31, 2002, whichever occurs earlier. This policy may be extended with appropriate Council action. 2 ITEM I--~ MEETING DATE 7/09/02 Calculation of Compensation: The amount of this paid leave shall be equal to the employee's normal bi-weekly gross pay (excluding any overtime pay) offset by the amount of gross military pay for such duty, including all military allowances paid to the employee. Employees will continue to receive full benefits for that period including vacation and sick leave. Condition of Payment: Payments authorized under this policy shall be conditioned upon compliance with procedures established by the Finance and Human Resources Directors. FISCAL IMPACT: As many as 20 employees remain eligible for recall to active military duty. Of the original four called, only one remains on active duty. It is not possible to forecast how many more will be called in the next six months or the resulting fiscal impact because most positions are not back-filled. 3 RESOLUTION NO. 2002- RESOLUTION OF THE' CITY COLTNCIL OF THE CITY OF CHULA VISTA APPROVING EXTENSION OF THE MILITARY LEAVE POLICY APPROVED BY COUNCIL ON OCTOBER 9, 2001, FOR ALL CLASSIFIED AND UNCLASSIFIED EMPLOYEES THROUGH DECEMBER 31, 2002 WHEREAS, on September 14, 2001, President Bush signed an order authorizing the military to call up 50,000 military reservists, in the aftermath of the terrorist attacks; and WHEREAS, as a result, on October 9, 2001, the City Council approved a temporary Military Leave Policy to insure that City employees who are called to active duty maintain their current level of pay and benefits; and WHEREAS, staff 'recommends extending the policy through December 31, 2002. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve an extension of the Military Leave Policy approved by Council on October 9, 2001 for All Classified and Unclassified Employees through December 31, 2002 as follows: Military Leave Policy Definition: Military leave during this period is paid leave of absence from work granted to employees who have been ordered to active military duty as a result of the terrorist attacks in the United States on September 11, 200.1. Eligibility: Employees who are members of the reserve corps of the Armed Forces of the United States or the National Guard or the Naval Militia who have been ordered to active military duty as a result of the terrorist attacks on the United States on September 11, 2001 are eligible for paid military leave. Employees shall not be eligible for this paid leave for the 30 days that they receive paid military leave pursuant to existing MOUs, City Policy and the California Military and Veterans Code. Duration: This leave is provided as temporary relief from financial hardship due to loss of pay and benefits for employees on active military duty as a result of the aforementioned terrorist attacks. This paid leave shall commence on the date which California Military and Veterans Code benefits are exhausted. This paid leave shall cease on the date the employee is officially released from active military duty or December 31, 2002, whichever occurs earlier. This policy may be extended with appropriate Council action. Calculation of Compensation: The amount of this paid leave shall be equal to the employee's normal bi-weekly gross pay (excluding any overtime pay) offset by the amount of gross military pay for such duty, including all military allowances paid to the employee. Employees will continue to receive full benefits for that period including vacation and sick leave. Condition of Payment: Payments authorized under this policy shall be conditioned upon compliance with procedures established by the Finance and Human Resources Directors. Presented by Approved as to form by Candy Emerson John M~ K~n'y 0 - ' Director of Human Resources City Attorney [H:\HOME\ATTORNEY\RESO\ Policy Military Leave {June 25, 2002 (~:37PM)] COUNCIL AGENDA STATEMENT ITEM MEETING DATE 07~09~02 ITEM TITLE: RESOLUTION Approving agreement between the City and Marsh Risk & Insurance Services for benefit broker and consulting services and authorizing the Mayor to execute the agreement. SUBMITTED BY: DIRECTOR OF HUMA~ESOURCES~_./ REVIEWED BY: City Man .age.J/ (4'Sth Vote: Yes No X, The City has been contracting with Johb]Burnham Insurance Services since July 1991 to provide benefits brokering and consulting services. With the rapidly changing area of employee benefits, it is of increasing importance that the City employ the services of the most innovative and proactive firm to assist the City in "state-of-the-art" plan design changes, alternative funding arrangements, and long-term cost control. A Request for Proposal (RFP) for broker/consultant services was issued. Six proposals were received and evaluated. Based on this evaluation, Marsh Risk & Insurance Services is recommended to be retained as the broker of record/consultant for the City's various employee benefit programs. RECOMMENDATION: That Council adopt the resolution. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: The City has been contracting with John Burnham Insurance Services since July 1991 to provide benefits brokering and consulting services. With the rapidly changing area of employee benefits, it is of increasing importance that the City employ the services of the most innovative and proactive firm to assist the City in "state-of-the-art" plan design changes, alternative funding arrangements, and long-term cost control. A Request for Proposal (RFP) for broker/consultant services was issued. Six proposals were received and evaluated by a committee. In final ranked order, the proposals came from Mamh Risk & Insurance Services, Barney & Barney, Towem Perrin, ABD Services, California Corporate Benefits Insurance Services and John Burnham Insurance Services. The review committee consisted of the City of Chula Vista's Risk Manager, Benefits Manager, and a Deputy City Attorney. In addition, the Human Resources Benefits Managem from the City of San Diego and City of Escondido provided their expertise and were also on the review committee. Criteria used in evaluating the firms included: 1) specialized experience and technical competence; 2) method to accomplish the work; 3) expertise and strength of key personnel; and 4) compensation. The Selection ITEM I~ MEETING DATE 07~09~02 Committee narrowed the field of candidates to five finalist firms. The five selected firms were invited to an oral interview. Reference checks were completed and on the basis of the Committee's evaluation, Marsh Risk and Insurance Services (Marsh) was recommended to be retained as the broker of record/consultant for the City's various employee benefit programs. Marsh has extensive experience in working with the public sector and has maintained an office in San Diego County for over 50 years. Marsh has performed viability studies, created pricing for plan design, contributions and flexible credits, and monitored cafeteria benefit plans. Marsh is a subsidiary of Marsh and McClennan Companies and a sister company of Mercer/Foster Higgins. The scope of the work to be performed by Marsh is outlined in the attached agreement. FISCAL IMPACT: Marsh will receive its compensation for all brokering and consulting services provided via commissions versus an "adjusted hourly billing" method. Brokerage commissions are currently factored into all benefit premiums. The current broker, John Burnham, is receiving an annual commission of approximately $111,744 in the current year from all City insurance providers via these commissions. If the City were to utilize the "adjusted hourly billing" method, thereby paying the broker/consultant directly from City funds versus commissions, we would be paying approximately $200 per hour (based on our current hourly arrangement with Barney and Barney). Based on the current premiums of $111,744, this would give us 558 "billable hours" of service, which would include travel and phone time. The commission basis gives us unlimited access to the expert knowledge base and support needed to keep up with the rapidly changing federal and state regulations. Since insurance providers pay the broker/consultant commissions, a commission-based compensation is more cost-effective to the City. Commission arrangements will be handled by Marsh through negotiations with insurance providers and are subject to the City's approval. Marsh will submit to the City, a monthly statement outlining commissions received and services performed during the reporting period. Attachments: A - Agreement between the City of Chula Vista and Marsh Risk & Insurance Services. B - Marsh's Proposal for Employee Benefits Broker/Consultant Services CITY OF CHULA VISTA Response to Request For Proposal Presented 8¥: Marsh Risk & Insurance Services 4.4~5 Eastgate Mall, Suite 300 -:- San Diego, CA 92121-1979 Tel: (858) 552-4.20D .:- Fax: (858) 542-4299 -:. License #0437153 vvww.marsh.com MARSH Table of Contents - 6.2.1 Executive Su'mmarx Page 6.2.2 Identification nf Pml)oser '2 fi.2.5 Specialized Experience ,~ - 1:;.2.4 Proposed Method to Accomplish the Work 4 6.2.5 Strcngnhs of Key Personnel t4 _ 0.2.6 Compensation ] 7 (,.-. / Exceptions to this RFP 17 6._.8 Addenda m this RFP 17 6.2.9 A Client Reference List 18 7.2 Authorized Signature 19 6.2.1 Executive Summary We are pleased to respond to the Cie? of Chula Vistu's request for proposal for employee benefits brokcr/consultam sen'ices. We think you will agree our responses clearly dernonstrate that Marsh has considerable experience working with public agencies. 'We understand the dynamics of the C tv's day-to-dm concerns and so are extremeh' capable of proxiding the services Iist4d und4r Section 3.0 entitled Purpose and Objectives of the RFP and the Marsh "Value- Added SerGces" a.~ explained on pages 3-9 of our response. 5 Iarsh is committed to developing a narmership with the C: tv of Chula Vista. We oft~:r exemplar3.- local service coup ed with global brokerage resources. No stone will be unturned when the CIE,- personnel join forces with Marsh. .~ a good-faith demonstrafon of that commitment, Marsh will offer the City O£ Chula Vista - in addidon to our first-rate brokerage ser~4ces and resources 2 the following free sen'ices: · Free Section 125 and COBRA administration · Sponsorship of a health fair once a year ~. ' Free access to our Western Region i~egal Resource Unit (ERISA attorneys) · Free access to HR-K.nowHow.com (an internet human resource tool for ' relative professionals) · Free admission to our legislative update seminars · Pre-scheduled Action/Status Meeting, to include use of Action Task Logs · .~anual Strategic Planning Meetings, with Human Resources and also in conjuncuon uqth the Benefits AdxSso~ Group · Free usage of the annual Marsh San Diego Municipality Survey Our common, goal will be to ensure the City's peace of mind bv being the brains behind its benefits pro,am and helping the Git), be well-positioned for the &i-: Rc.~pon.~c ti, Re~uc.~'t./br 6.2.2 Identification of Proposer Legal Name and Address of Proposer: Marsh Risk & Insurance Scrvk:es 4445 Eastgate Mall Rd., Suile bOO San Diego, 92 ] 21-1979 Legal Form of Proposer: Corporation Addresses of 0ffice(sl Located in San Di0D0 County: See Leg'a] Narnc Number of Years that Proposer has Maintained Office in San DieDo County: Ocr o0 h ears Number of Employees in San DieDo County: ] 30 PersDit to Contact: Sue Ebner, Senior Vice President 4445 Eastgate Mall Rd., Suite 300 San Diego, CA 9212]-1979 Tel: (858~ 552-3878 6.2.3 Specialized Experience We at Marsh believe, ~dthout hesitation, that we possess the required experience to partner with the City to achieve the goals, objectives and program needs, as outlined in the Section 3.0 Purpose and Objectives. Simply and boldly, because of our experience, e.s described below, we do not have to re-mxent the ,~heel. We can be~n work immediately: Experience in woridng with Public ,&gencies: The caliber of our local and nadonal client list wilJ prove our understanding, knowledge, sensifixdty and successful wor 'ldng capabilities ~dth the dynamics of public agencies, such as the requirements, strate~es, communication, recommendation and decision-matting :- proces.$es F-~xperience in Flexible/Cafeteria Programs: Marsh has performed viabili~: studies, created pricing for plan design, contributions, and Flex-credits and monitoring programs and coordinated implementation and in some cases, transition to a non-Flex/Cafeteria plan for many of its clients. F-.,xperienced local slx person Marsh Tea.m: Created specifically for the City., with public agent: experience and who have access to an unparallel lmowtedge base _ of locally 40 and nationally 650 Employee Benefit colleagues and a Nations] - Public Entity,. Practice. Well respected reputation with the carriers/providers: A~ the insurance companies largest customer, due to the premium dollars we direct to the carriers 2 MARSH llz~p, nsr t~, l~que.;(/br II,r:all,x and nationally, we receive m~kximum I~'veragr in pricing, ltalic} terms. improved effi('i~'n~:i{.s and better overall cuslomcr sero'icc. - After renewing the gnus and obiectix-cs under Section 3.0, Purpose: and O~iectivcs, we were able to org~izc them inlo the folk~wing six consuhing/brokcr~c deliverables: - = Plan Strate~zing and Trend ~ysis ' l~:gal Update and Compliance ' Financi~ (claim utilization ana}ysis and lundlng arrangements~ - ' Rencw~/Marketing ' Communication ' Problem SoMng Collectively, the Marsh Team and Mmh resources are able lo perfo~ and offer solut OhS to thc above six deliverables. These resources are dvnmic in that Marsh continu~]y creates new se~4ces ~d products are prox~ded to address new issues and trends in thc rapid}y cheung Employee Benefits enGronment. In this wa), thc Marsh Team c~ provide semSces and resources that can ~ssist you in what it takes to do your.job wall and meet your go~s to b: successful. ~e following, but not limited to, specific sec'ices and resources would be accessed per deliverable above: ~ Plan Stra~c~zing ~d Trend ~ysis ' Employee Benefi~ Objective Setting ~ Action/Status Meefin~u4~ Action T~k ~g ' ~nu~ Stratc~c Pl~ning Meetin~ -- ~ The San Diego M~sh ~nu~ MunicipMity Sun,ey ' The Mercer/Foster H~g~ns Nati0n~ Su~,ey of Employer Sponsored HeM~ Pl~s · The Mercer/Foster Hig~ns National Public Entities Profile Repom ' The M~sh WorWorce V~ues ~d -Needs Su~,ey ' ~g~ Update ~d Compli~ce ' The Marsh Western Re~on~ ~g~ Resource Group · ~XXG Wee~y HigMighu ' ~e Mercer Report · M~h EBS bulletins · Fin~ci~ (cl~m u~zarion ~ysis ~d fun~ng ~r~gemen~q) · Custom,ed cl~m utilization repo~, mon~ty ~d queerly ~ ~u~ fin~ci~ forec~fing ~ ~nu~ ~ci~ under~fing, contribution ~d flex-credit modeling ' Renew~/M~kefing ' ~u~ Strate~c Pl~ning Meerings ' S~ ph~ed PrQect M~ement of ~e Renew~/M~kefing Process ' Commmcafion ' Build~g Bloc~ on ~e Web ~d on paper - ' Problem SoMng ' S~ person s~ed Mmh Tern M~ e~efienced, creative ~d ~ e~a~five problem soMng s~ 7 ' M~sh's lever~e ~5~ the c~ers/prox4ders to excel solutions :' 3 RSH 6.2.4 Proposed Method to Accomplish the Work _ Describe the Proposer's strategy and technique to meet the City's needs as outlined in Section 3.0 _ Marsh's Employec Benefit Team, n concert with your staff, will maintain a eontlnual and creative involvemcm in your Benefits program. We believc that plan design and funding alternatives can only be properly evaluated by first arriving at a clear understanding of your goals and ob. jectives. This consuhativc approach will ensure that your Benefits program: · Generates employee satisfaction and security · Meets ),our corporate objectives · Meets ),our financial goals We will work with you to establish a Benefits program that will continue' to offer high equality benefits to your employees and their families that are: · Efficient in assuring participants of the avallab In', of the highest, qualitx, care, while delivering benefits in the most cost-effective manner · Effective in promoting wise utilization of the Benefits by use of incentives and plan provisions which assure that the participant have a persona] financial interest in seeking only appropriate and necessary health care senqces · Competitive with those offered by comparable firms, to enable you to attract and retain qualified, competent and motivated indix4duals The Marsh Team will also provide the Gity of Chula Vista access to the following :.. Marsh \'alue-Added services, as described in the follo~4ng pages: · Marsh Value-Added ServJ~:¢$ - This graph illustrates the Standard Sen'ices. " located in the center of the box, and the Marsh Value-Added Sen'ices outside the center box. These Value-Added Ser-,4ces are "dynamic" in that new sen'ices and products are prox4ded to address new issues and trends in the rapidly changing Employee Benefits em4ronment. (Page 5) · Explanation ofthe Marsh Value-Added Serx-ice - Highlight of\'alue-Added Sen-ices we believe most pertinent to the CiD' of Chula Vista. (Pages 6-9) MARSH Marsh Value Added Services Indicates fee based services Fle~],tmxc tt~ Fieque.d. fi~r Marsh Value Aflded Services Spegifie to the City of Chula Vista blarket tevera§e Nationally, Marsh places ox'ir S trillion of premiums in thc marketplace. Our professional reputat on and purchasing vower nrovidcs u~ Icvcra,,c to helot a ' pnt:~ng and covctage, and to resolve claim and administrative issues. Marsh Employee Benefit Sen'ices has developed strategic partnerships with several insurance carriers, such as Met Life, Unum, Cigna, Reliance Standard, Mutual of Omaha, John Hancock and Aa'nerican Genera. Due to the aggregate -- premium dollars and persistency (policy holder relent on) these carriers provide our clients ~4th aggressive pricing policy terms and in difficult or competitivc situations are abh: to make "business decisions" versus corporate policy decisions. ' These partner arrangements help differentiate Marsh by offering dedicated resources, servlcc commitments and problem solving strategies. Most importantly~ our clients benefit from the improved efficiencies and better overall customer sera,cc that these national a~eements are intcnded to foster. Employee Benefits Objective Setting Marsh Facilitates the establishment of Employee Benefit.~ Objectives. The process ma)' include one-on-one Executive inter~4ews, focus groups and a written survey. The Employee Benefits Ob. jecfives will provide the short and long term strategies, to include, the budget criteria, risk aversion, desired competitive level of the Pro,am and the contrib~utlon strate~'. These Ob. jecfives prox4de thc foundation for the Employee Benefits Pro,am recommendations and · . implementation. The Objectives are rex'iewed annually during the Strategic: ?: Planning Meeting to determine their appropriateness for the new ),ear. Legal Research and Consulting Resources Marsh prox4des extensive legal resources and services through our Western Legal and Compliance Resource Group and our Mercer Washington Resource Group. These resources keep our clients abreast of the most recent legislative issues, including state-mandated benefits, ERISA, HIPAA and COBRA. The City of ¢ Chula Vista ~411 have access to our two on-staff ERISA attorneys from our' Western Resource Group at no cost. Following are some of the free legal sen-ices you ~411 receive as a client of Marsh: · Compliance audits · Client legislative and compliance seminars · Benefit plan and contract review and interpretation · Merger and acquisition due diligence · DOL and IRS audit assistance · Compliar~ce manuals, to include required documentation, forms and procedures (HIPAA, HIPAA Medical Privacy Compliance for self-insured plans, COBRA) .L: · Company specific issues MARSH ()ur lx~gal ri!sources will provide, on a regmlar ha.sis, the fbllowing periodicals: WRG Weekly Highlights - summaries of brcuking news affecting Benefits. such as court cas$'s, cnmmittec hearing, r%mlmions and IRS Ic~slativc development ~d DOL mlin~ ~d opinions. The Mercer Rcporl - short ardcles on recent th'velopmenLu affecting Benefits. Del)ending upon thc topic, could providr exclusive discussion on one topic nr ove~-iew of s{'v(-ra] recent developments. EBS Bulletins - generated from nut Western LegM and Compli~ce Resource Group, prnvldes summaries o[' recent devclopmenB ~t~c:ting Bcncfits, and highlights Calilbrnia. if applk:able, dcvdopments/issues. _ Strategic Organization · A~,-,.ml Swateg~c Pl=,-,;,,g Meeting For the Marsh public agency clients, we annu',dlv facilitate, a strategic . planning meeting, separately for the Human Re.~ources Department and again for representatives from the various member units. The goals nfthc meetings arc to ensure that 'all members have an understanding of thc current financial status of th(: in-force plans, state and of thc hcalthcarr market, ~o include a review of the employer, carrier and proxSder emnronmenk new concepts, legislation and trends. We then facilitate cstablishmcnl of the goals and objecth'es of the renewal. These meetings serve a.s a too] that enables consistent communication and a dear understanding of expectations and goals as we approach the market for renewal information and provide back proposals and our recommendations. The decision-making process for final plan desi~mn and carriers is minimized due to the up-front plannin[ and educating of the Human Resource Department and member representatives. In essence, these meetings enables : the Human Resources Department and member representative to intelligently communicate or explain decisions to their employees. · Action/Status Meetings ~ Marsh will facilitate pre-scheduled (monthly or bi-monthly) meetings with the appropriate members of the Human Resource Departraent. During this meeting, the Marsh Team w411 communicate any changes or nuances in _ legislation, benefit trends, carriers/providers or ~he healthcare industry. An : Action Task Log '~411 be used and reviewed, t Identifies the status of current and oumtanding issues. Lastly, the public agency pro~,4des an update that may affect the Benefit program and subsequently, items or tasks are identified for' further investigation, review or action. Mercer/Foster Higgins National Survey of Employer Sponsored Health Plans Survey ?mnually, this survey is conducted by our sister company, William M. Mercer, and prm'ided to our clients..Over 4,000 employers, including national and local public agencies, participated in the survey and prox4ded benchmarking data on health benefit.q trends nationwide, to include costs, plan design, contribution strategy by size' of employer, industry, and geographical region. .n,m 7 MARSH '" //,, tD Industry Expertise · Marsh possesses unparalJr] expertise in thc public agem3 arena. In addition to providing sc~'k'cs to local agencies, Marsh can access nur national Public Emit) Grcmp for specific sen'ices ~d rcsourc:es. Through our sister comps) and our local office, we produce sun,cvs on a national and local basis exclusive tt, public agencies. The su~,ey r~sults assist us in determining the competitiveness of thc currcm bcnefil pro,ms, recommending suggestions lbr pl~ &si~ ~d providing support lbr plan desigm and ('os~ decisions, l~gdy, our loyal long-term Marsh public agent:)' clients demonstrate our expertise in addressing and resoMng the pertinent issues specific to the public agencies. Our clients se~,e as resources for ideas, information and benchm~ng data thru will mssist in pl~ desigm, consuking strate~', cns~ ~alysis ~d negotiating rates ~d polkT terms. Marsh@work.~om (Marsh Proprietary Resource) This employer Web site facilitates online enrollment and promotes employee "self-sen'ice" for benefit and human resource in£ormation. ,~m k:on may be added to the company's Web site. which caln provide cmployecs 24-hou'r access to comport) specific bencfii information plus helpful too}s and refi',rence materizfls. Specific features include: · Carrier and H.R. Contact ' Electronically Transmitted Data to information Carrier · Glossary of Benefit Terminoio~, · Employee and Proxdder Directories · Wellness News · Event Information · On-line Benefit New~letters ' Company Handbooks · Benefit Plan Descriptions ' On-line Plan Enrollmenl · Confirmation Statements Communication Materials Communications consulting and information is di;4ded into four forms within the Marsh organization. This ,t,t,typically provides communication material for recruiting, enrollment, or benefit description purposes. Local On a local basis, the Marsh office has the abili~, to provide benefit comparisons and simplified benefit material through Word, Excel or PowerPoint sofinvare. We often prepare presentations for our clients to present to senior management with summaries of prior analysis and recommendations. · . Sem!-Custom (Marsh proprietary resource} B. uilding Blocks on the Web Through a custom Web site that corresponds with your printed benefits · .: collateral, Building Bloc'ks on the Web empowers employees to not only : find the answers to their benefit questions, but gives them the tools to · 8 MARSH ::: /A // - make c'ducan,d decisions aboul their benefit choices. Building BIm'ks .n the ~Veb serves as an HR department on thc web, oJIering (x~mpMv bcnefi~ in£n. rmation including plan desigm and highlights, eligibility, pkm ~ costs, frequently asked questions and contact information. Emplm,ees : can cvcn read about and compare plan costs side-by-side online. Jill Ibrms, such as Summary, Plan Description. enrollment materials and other Icg',d dncuments can be made available to download and print at thc' employee's convenience, whether from thc office or home computer. Building Blneks (:an communicate general company information and _ enables the HR Staff to send and post messages, memos and reminders direed) on thc site. Building Blockq - Paper A series of template designs provides semi-custom communication material for recruiting, enrollment or benefit description purposes. The template desi~ms include several options such as panel brochures, bound booklets, and pocket folder with stair-stepped inserts. Custom 'We can coordinate customized materials through our sisu:r compan~ Mercer Human Resource Consulting or Lc,cai independent communication firms. HRKnowHow.com (Marsh Proprietary Resource) HRKnowHow, is an all-inc us vt resource desig'ned to assim employee benefit administrators and human resources managers vdth their day-to-day responsibilities. The site contorts an abundance of well-organized ir~formation to prod& you x~Sth everyday assistance, such as · dally news updates · interactive tools · reference materials · forms and templates · benchmar'king surveys · government publications Retirement Planningflnvestment Advisory/Executive Benefits Retirement benefits can be a significant part of an employee's total compensation and an important tool for an employer in manmo~ing the organization's worlfforce. Marsh can assist you to ensure that the retirement plan you offer prospective candidates as well as valued staff keeps you ahead of the competitive curve. Marsh xdll evaluate the Ci~' of Chula Vista's current retirement plan or market current plan to competing providers along three dimensions: costs, fund qualiw and serxfce. ' - Explain the Method to Market the Insurance Plans & Evaluate Proposals From Benefit Providers (6.2.4 Continued) Marsh uses a six-phmic prqject manag'cmcnt approach to [:acilitate thc annual 7- rcnewal and marketing. We believe that establishing the go'ds and objections for thc renewal and marketing is critical to thc success o£thc process. The nhjectives include identifying budget, contribution strateg?-, des red Icvcl of competitiveness, risk tolerant:c, dcsircd financial funding arrangement and dcsire Ibr choice. Om:e these objectives art' identified, our analysis of the proposals, fin'A report and recommendations art. focused on satis~,ing those objectives. A descrip6on of how we will proiect manage the,Januan.' I. _003 renewal fc, r thc City of Chula Vista is included in thc following pages. Selecting insurance carriers and sen'ice providers/'or the City of Chula Vista will bc one of the most importimt duties our Team will face as your business partner. Thc chok:e ha.~ to be made with a thorough understanding'of your needs, goals and st3,, e of do ng busines~ by our Team. We do not believe that price should be: thc sole factor that should drive the decisions. What is cheap on thc cover is usually cheap on thc ins de and ends up cnsting more in thc long run. _ Characteristics we eva}uate in selecting insurers and sen'ice providers include: · Financial stability · Provider network that satisfies thc' Cie) of Chula Vista employee locations · NationaJ presence · Recognized long-term player with stable underwriting policies ompetmve pricing :- ' Sensitivity to thc Git) of Chula Vista's corporate culture Excellent set\See reputafon,in administration and eli~bility processing · Technolo~:-driven and efficient claim processing systems 7 ' Competitive plan desi~o-n offerings A criteria that needs to be highlighted in selecting the carrier is that the carrier :- and/or provider must meet the financial criteria that Marsh has established. Marsh's guidelines for U.S. insurance companies require in A_M Best's rating of A- or higher and at least $50 million of unencumbered policyholders' surplus. - Business may be placed ,Mt\ companies below our guidelines only under the instruction of clients. Rc~/mn.;e v, Pequc.~( [i~ l'r.pmal Carrier Renewal and Negotiations Process Our Rcncwal/Negotiating Prqjcct .~lanagemcm Process includes six ph~cs ~ illustrated and explained in thc following pages. Rc.~pomc ~, Rrque~( fi~r Pr Process: Marsh interviews appropriate Human Resource and Senior Managcmcm Team members regarding the short and long term goals of thc company and their subsequent expectations for the Employee Benefit Prngram budget requirements, desired plan t:omlx~titk,em.ss and contribution strateg'y. Outcome: An Employee Benefit Strate~' that identifies the short and long term objectives, the requisite competitiveness of the program and the financial goals. Process: Marsh reviews the financial status, plan design and policy proxisions of the in- force Program and benchmarks them with Mercer/Foster Hig~ns National Survey of Employer Sponsored He~th Plans data. Marsh San Diego Client Benefit Sue'ex. Marsh San Diego :'xlanicipalit)Survey and Marsh Wot 'kforce Demo~aphics Value an~l Needs Report to determine the competitiveness of the plan costs, plan design and employee contribution strate~'. Benchmarking will.be based upon company size, geo~aphic location and industD'. Outcome: A report identify4ng currez3t level of competitiveness and recommendations and timeline to determine Employee Benefit Objectives to be established in Phase I. Process: Our discussions build upon the results of Phase I and Phase II and models ac.c~rdingly various £mancial and plan design options based upon expected renewal pricing and budgets. Dialogue includes paid claim summary review, carrier Serxdce satisfaction, network satisfaction, marketing necessi~' and as'affable alternatives which are consistent Mth the Employee Benefit Objectives estabhshed in Phase I and II. Additionally, contribution, communication and enrollment strategies are discussed. Outcome: A report that will provide an overdew of the current market trends and emironment. This report in conjunction Mth the dialogue will identify the objectives of the marketing and renewal, to include plan desig'n/options, carr/ers/v~ndors, networ 'ks and financial funding alternatives. In addition, an employee communication strategy to include process, mater/als and scheduling will be developed. l&.g,,n.~e u, tL,'quc~(fi,? "Marsh Goes to Work? Process: Thc renewal/marketing objectives established in Phase Ill serve as the basis for the specifications that Marsh will creme and distribute to the marketplace. Thc Ciw of Chula Vista will be presented to thc markets in an accurate and favorable manner. highlighting thc positive aspects of thc company which could havc a favorable imt~act on price. The specifications will dictate the level of coverage. Marsh will answer carrier questions, evaluate the proposals, meet with the carriers, maximize its negotiating lex crage to secure aggressive rates, rex4ew administrative services, analyze network adequacy and proposed benefit level and plan options. Marsh will select markets that will be flexible in proxSding comprehensive and national coverage at an aggressive price. We will utilize only thc most financially sound and stable carriers. Outcome: A comprehensive well organized report providing an Executive Summan,, recommendations with advantages and disadvantages, negotiated rates with the incumbent and proposed carriers, plan and carrier options, contribution strategy analysis and marketing and analytical support data. One of our greatest strengths is working with clients to select strateOc partners. ~¥e draw upon our vast experience and relationships with various insurers. This results in a well thought out marketing plan which will sen'ice the CiLx of Chula Vistak well into the future· Process: The Marsh Team presents the Renewal/Marketing Report to the City of Chula Vista's. Discussion focuses on negotiation results, plan options, contribution strategy and recommendations. This report ~ill allow the Human Resources department to develop their recommendations to the Senior Management Team. Outcome: Renewal decisions and decision-making to include carrier selection, plan design, financial arrangement, premium rates and contribution strate~,. Lastly, open enrollment is conducted and completed. Process: Marsh assists in the transition to a new carrier(s), reviewing administrative issues, SPDs, plan documents and contracts. Marsh rex4ews the enrollment outcomes relative to plan design and rates. Outcome: Transition to a new cartier(s) and implementation of any plan changes has been completed. A resume is presented, which includes the final rates and implemented plan designs. MARSH 6.2.5 Strength of Key Personnel £~1, of Ei~ Objectives Benef~ plan management Kris Michell PJan Advisor and Public Entity Practice Leader Experience & Strengths Kris brings 12 ),ears of public entity experience to Marsh: four o£the 12 years working direcdy for thc City of San Diego. Prior to Mansh, Kris ,alas Viee President of Governmenl Relations for the San Diego Padres, and pr'or to thal as Ch cf of Staflto San Diego Mayor Susan GoJding: Kris' understanding of'the public entity process allows her tobea ' · ..... . _ umquc adxocat¢ on the chents' bch',flf negotmtJng with major insurance carriers. Employee Benefit Department Manager : ' - :i Experience & Strengths Linda brings 20-plus ),ears of experience in the health care industry. She has pre~oush worked for a national HMO, a ma:jor insurance carrier, an cmpJox~ee benefits brokera~(e firm, and a managed care organization. Linda's stren~hs are: · Employee Benefit Program Strate_-ic Plannine _ ' Managed Care - - · Employee Communication · Financial Funding Alternatives · Mereer/Acquisit/on Due Dilioence · Renewal Negotiating · Public Agencies -' Pamela Burcher ' Client Consultant Experience & Strengths Prior to joining Marsh, Pamela worked for two national insurance companies, as an Account Executive. In that role, Pamela was responsible for analysis of insurance of contracts and prox'isions, prox'iding consulting services, such as education, introduction of products and product enhancements and assistance in resolving contractual, claim and administration problems. Pamela's strengths are: · Strateg/c Planning on Employee Benefit Pro~m'~ · Communication Advocate for Employer and Vendor Partnerships :: · Thorough knowledge of the national and local Managed Care environment · ' Employee Conlribution Analysis - · Plan Design, Renewal Underwriting and Negotiating .~ · Claim Utilization Analysis - Michelle Williams Benefit Analyst ' ' ---": 'F '- ..--, Experience & Strengths . Michellcjoined Marsh in 2000 as a Benefil Analyst Administrator, in which her responsibilties included generating claim experienee and competitive survey reports, -- creating resumes of insurance and assisting in special prqjecLs. After successfully completing Marsh's national Employee Benefits Univers ty, M chel e was promoted to a Benefit Analyst, where she is currently assigned to the San Diego Unified Port District -- and several other high profile San Diego companies. Michellc's strengths are: · Employee Benefits Survey · Contract rex4ew to ensure compliance with federal and state regulations .- · Administration of Employee Benefit Program · Write/revise benefit enrollment guidelines and employee communications · Plan/conduct neb employee benefits orientation and annual benefits open enrollment · RexSew/streamline benefit procedures and practices · Financial review and cost estimates Sandra Stengel Technical Consultant Experience & Strengths Sandrajoined Marsh in 1994 as a Technical A_nalyst, worked her way to Consultant and then moved into her current role as Technical Consultant. Prior to joining Marsh, Sandra spent two years with a competing consulting firm also as a Technical Analyst and four years as an underwriter with a national insurance carrier. Sandra's strengths are: · Underwriting ~ ' Alternative Funding Arrangement 3. !. · Benchmarking Analysis · Claim Utilization Analysis ~-. ' Financial Forecasting · Employee Contribution Modeling · Flexible Benefit programs Lisa Klini~r: ?7: -- Employee Benefits Attorney - Experience & Strengths Lisa has prm4ded ERISA guidance to Ivlarsh staff and clients for more than 16 years. - Her specialties include: · Adx4sing clients on compliance requirements under HIPAA., COBRak, FMLA, ADA, ERIS& Medicare Secondary Payer Rules, and other federal laws ~- · Adxdsing clients on compliance requirements under state laws such as California Family Rights At:t, state continuation requirements, and Pregnancy Disability. Leave -- · Preparing and prtsenting seminars · Ad~'ising clients on Form 5500 fLlin~ 77- ::.- ' Drafting plan documents and smmple forms ~: · Assisting clients with POL audits re,m: 16 MARSH :" Iq Re. Vmmc to Rxqucs(fi..r%po. lal 6.2.6 Compensation Marsh is agrccablc Il, bc adequately compensated for our time and expenses, in a manner you, our client, deem mos! appropriate. Therefore, wc arc willing to receive commissions from the insurance companies. Additionally, Marsh will submit a monthly statement to thc City of Chula'Vist~, indicating th thal were provided and the ¢:ommissio~s received. Without knowing what the current commission level is, Marsh will a. ssumc the standard commissions from thc carriers a.s shown below: · Medical- 5% · Dental- 8% · Life - 10% · STD/LTD- 10% 6.2.7 Exceptions to this RFP The proposed a~eement. Attachmem B. in the Reques~ for Proposal, is under scheduled Ma) 28.pres{nted to Iht CJI) ofChula5 ]sta pr]or to the or'als, 6.2.8 Addenda to this RFP Marsh confirms receip~ of Addendum #1, dated May 7, 2002 Re.~pon.sc to Request.fi~r Pr~po.~al 6.2.9 A Client Reference List THc' value in idcnti6dng Marsh's clients is that it demonstrates our expertise and available knowledge bzc~e in delivering businc~ solutions, negotiating policy terms and pricing, ser~Scing all lines of coverage and meeting the City of Chula Vista's cxpectatlons and needs. Wc encourage thc City ol'Chula Vista to contact the following Marsh San Diego clients to confirm thc quality of our work. We have contacted our clients below that you rna), be calling them and 'all have agreed to answer any questions you ma), have in regards to our services. Client Name: City of Escondido Contact Name Gall Sullivan (760) 839-4587 Lines of Coverage Medical, Dental, Life, LTD, STD, Supplemental Life and Cancer Number of Employees 775 Number of years with Marsh 3 Client Name: The San Diego Unified Port Authority ~' Contact Name Jeff McEntee (619) 686-6423 Lines of Coverage Medical [PPO and HMO), Dental (PPO and PrePaid), Vision, Life and AD&D, LTD, STD -- Number o~ Employees 500 : Number of years with Marsh 8 Client Name: Data Processing Corporation {City of San Diego} : _ Contact Name Mary Salerno (581) 581-9613 Lines of Coverage Medical, Dental, Life, AD&D, LTD, Long Term Cam -- Number of Employees 350 Number of years with Marsh 21 Client Name: Helix Water District Contact Name Aiethia Brown (619) 667-6299 Lines of Coverage Medical, Life, AD&D and LTD Number of Employees 150 _ Number of years with Marsh 9 .,,.. ]8 MARSH In addi6on Io thr clients above, our ot'fic(· also provides Proper and/or Risk Manage'men brokerage, and consulting services to th(. £ollm~ing publk' ~mt Lv clicnts~ · San Diego Community College District · San Diego Convention Center · San Diego Economic Developmenl -- · San Diego Unified Porl DistrJcl · City of Carlsbad · City of San Diego -- ' City of San Diego MWWD · City of Oceanside ._ As the world's leading global brokerage and consulting firm, Marsh pr/des itself in the depth of knowledge and breadth of experience it is able to offer its clients. This includes significant benchmarking and technical information, and often, . creative problem-solving. Our goal as a corporation is to help clients assess their needs, identify and anticipate any problem areas and find and implement relative solutions in the form of risk management and employee benefit policies. Our _ goal as members of your Human Resources and Benefits Team is to offer you real-time solutions for today's challenges. In order to achieve this mission, the Marsh San Diego Team may call on the extensive resources of Marsh worldwide by accessing our Pr/vale Entity Agent Group (PEG) to aid in specialty areas or s~tuatmns. If that was required, the San Diego Marsh Team would coordinate all access with our national resource ~oup for any specialty activity. All strategic and day-to-day service issues would be provided by the San Diego Marsh Client - Consultant and Benefit Analyst team, who have sismificant client exper/ence in the public sector. 7.2 Submittal Requirements The proposal that Marsh has submitted is a firm offer. We will prmSde the services as identified under Section 3.0 and those identified in our responses. Trindl Reeves, Managing Director RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT BETWEEN THE CITY ~/qD M~%RSH RISK & INSUR3~NCE FOR BENEFIT BROKER AND CONSULTING SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the City has been contracting with John Burnham Insurance Services since July 1991 to provide benefits brokering and consulting services; and WHEREAS, with the rapidly changing area of employee benefits, it is of increasing importance that the City employ the services of the most innovative and proactive firm to assist the city in "state-of-the-art" plan design changes, alternative funding arrangements, and long-term cost control; and WHEREAS, a Request for Proposal (RFP) for broker/consultant services was issued; and WHEREAS, six proposals were received and evaluated and based on this evaluation, Marsh Risk & Insurance Services was recommended to be retained as the broker of record/consultant for the City's various employee benefit programs. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Agreement between the City and Marsh Risk & Insurance Services for benefit broker and consulting services, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said agreement on behalf of the city. Presented by Approved as to form by Candy Emerson John M. K~h~ny~ Director of Human Resources City Attorney j: \attorney\reso\Ma~sh agreement THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALL Y SIGNED UPON APPROVAL BY THE CITY COUNCIL l1~~. City Attorney Dated: CJ~ AGREEMENT BETWEEN THE CITY AND MARSH RISK AND INSURANCE FOR BENEFIT BROKER AND CONSULTING SERVICES If:; -'2# DRAFT Agreement between City of Chula Vista and Marsh Risk and Insurance Services For Broker/Consultant Service This agreement ("Agreement"), dated July 10, 2002 between the City of Chula Vista (City) and Marsh Risk and Insurance Services (Marsh), for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Broker/Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Marsh"), and is made with reference to the following facts: Recitals Whereas, six proposals were received and evaluated by a committee consisting of benefits professionals and a representative of the City Attorney's office; and Whereas, criteria used in evaluating the firms included: 1) specialized experience and technical competence; 2) method to accomplish the work; 3) expertise and strength of key personnel; and 4) compensation; and Whereas, the Selection Committee narrowed the field of candidates to five finalist firms which were invited to an oral interview; and Whereas, reference checks were completed; and Whereas, the Selection Committee recommended Marsh to be retained as the broker of record/consultant for the City's various employee benefit programs; and Whereas, the City requested Marsh to provide professional services because the firm's extensive experience in working with the public sector; and Whereas, Marsh warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Marsh to the City within the time frames provided by the City, all in accordance with the terms and conditions of this Agreement. 1 (0 -2£ Obligato.ry Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Marsh do hereby mutually agree as follows: 1. Marsh's Duties A. General Duties Marsh shall perform the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Marsh shall also perform the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Marsh, from time to time reduce the Defined Services to be performed by Marsh under this Agreement. Upon doing so, City and Marsh agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services (Intentionally Ommitted) E. Standard of Care Marsh, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. 2 I to ~ lb F. Insurance Marsh represents that it and its agents are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which except for errors and omissions, are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City. _Any subconsultants employed by Marsh to provide services under this contract shall comply with the insurance requirements set forth herein. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit which names City as an Additional Insured, with respect to vicarious liability arising from Marsh operations in connection with the performance of this agreement_which the City may otherwise carry ("Primary Coverage"), but only with respect to claims arising solely and directly from Marsh's provision of services hereunder. and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Marsh shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Marsh's Commercial General Liability Insurance Policy, Marsh shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. 3 16 - Z 7 H. Business License Marsh agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult Marsh for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Marsh throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in Marsh's performance of this agreement. B. Compensation Marsh will receive its compensation for all services provided via commissions as set forth in Exhibit A, Paragraph 11. Commission arrangements will be handled by Marsh through negotiations with insurance providers and are subject to the City's approval. Marsh shall provide the City with detailed monthly statements of account commissions received no later than 45 days after the end of the month. Marsh shall be compensated for out of pocket expenses as provided in Exhibit A, Paragraph 12. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. This is a three (3) year Agreement and shall commence on July 10,2002. 4 {fp ~2i 5. Financial Interests of Consultant A. Decline to Participate. Regardless of whether Marsh is designated as an FPPC Filer, Marsh shall not make, or participate in making or in any way attempt to use Marsh's position to influence a governmental decision in which Marsh knows or has reason to know Marsh has a financial interest other than the compensation promised by this Agreement. . B. Search to Determine Economic Interests. Regardless of whether Marsh is designated as an FPPC Filer, Marsh warrants and represents that Marsh has diligently conducted a search and inventory of Marsh's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Marsh does not, to the best of Marsh's knowledge, have an economic interest which would conflict with Marsh's duties under this agreement. C. Promise Not to Acquire Conflicting Interests. Regardless of whether Marsh is designated as an FPPC Filer, Marsh further warrants and represents that Marsh will not knowingly acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. D. Duty to Advise of Conflicting Interests. Regardless of whether Marsh is designated as an FPPC Filer, Marsh further warrants and represents that Marsh will immediately advise the City Attorney if Marsh learns of an economic interest of Marsh, which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. E. Specific Warranties Against Economic Interests. Marsh further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Marsh or Marsh Associates in connection with Marsh's performance of this Agreement. Marsh promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Marsh may not conduct or solicit any business for any party to this Agreement, or for any third party, which may be in conflict with Marsh's responsibilities under this Agreement, except with the written permission of City. 5 /10 -Zq 6. Hold Harmless Marsh shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attomeys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of Marsh, and Marsh's employees, subcontractors or other persons, agencies or firms for whom Marsh is legally responsible in connection with the execution of the work covered by this Agreement, except for those claims, damages, liability, costs and expenses (including without limitations, attomeys fees) arising from the negligence or willful misconduct of the City, its officers, employees or agents. With respect to losses arising from Marsh's professional errors or omissions, Marsh shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Marsh's indemnification shall include any and all costs, expenses, attorney's fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Marsh's obligations under this Section shall not be limited by any prior or subsequent declaration by Marsh. Marsh's obligations under this Section shall survive the termination of this Agreement. 7. Termination of Agreement for Cause If, through any cause, Marsh shall fail to fulfill in a timely and proper manner Marsh's obligations under this Agreement, or if Marsh shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Marsh of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Marsh shall, at the option of the City, become the property of the City, and Marsh shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused to the City by Marsh's breach. 8. Errors and Omissions (Intentionally Ommited) 6 /0 -30 9. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Marsh of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Marsh shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Marsh hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 10. Assignability The services of Marsh are personal to the City, and Marsh shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. 11. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement specifically and exclusively for the City shall be the sole and exclusive property of the City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Marsh in the United States or in any other country without the express written consent of the City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 12. Confidential Information "Confidential Information" shall mean that information disclosed by one party to the other in connection with, and during the term of this Agreement in connection with the services to be performed hereunder which is marked or designated as confidential at or prior to disclosure or which would appear to a reasonably-prudent person to be not public, confidential or proprietary in nature. All Confidential Information disclosed to Marsh during the term or in anticipation of this Agreement shall be deemed to be in connection with this Agreement. The term, Confidential Information, shall not mean any information that is previously known to Marsh without obligation of confidence, or without breach of this Agreement; is publicly disclosed by either prior or subsequent to Marsh's receipt of such information; is rightfully received from a third party without obligation of confidence or is independently developed by Marsh without references to City's confidential information or is requested to be disclosed by law or legal process. 7 /6 -3/ Marsh agrees to hold all Confidential Information in trust and confidence and not to use such Confidentiallnformatjon other than for the benefit of the City during the term of this Agreement. Except as may be authorized in writing by the City, Marsh agrees not to disclose any such Confidential Information, by publication or otherwise, to any person other than those who have a need to know for purposes of carrying out services in connection with this Agreement. Marsh may make a reasonable number of copies of documents or other media containing Confidential Information for purposes of performing the services under this Agreement. Upon termination or expiration of this Agreement, Marsh will return to the City all written or descriptive matter of other documents, tapes or any other media, which contain any such Confidential Information. Notwithstanding the foregoing, Marsh shall be entitled to retain a copy of such confidential information for archival purposes and to defend our work product. 13. Independent Contractor City is interested only in the results obtained and Marsh shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Marsh's work products. Marsh and any of Marsh's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Marsh shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Marsh shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 8 /6 -32. 16. Miscellaneous A. Marsh not authorized to represent City Unless specifically authorized in writing by City, Marsh shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. C. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. D. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. E. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. F. Marsh is not engaged in the practice of law and the services provided hereunder are not intended as a substitute for legal advice. 9 /h-33 Exhibit List to Agreement (X ) Exhibit A. [End of page. Next page is signature page.] 10 /& ~3LJ Signature Page to Agreement between City of Chula Vista and Marsh Risk and Insurance Services For Marsh Risk & Insurance Services IN WITNESS WHEREOF, City and Marsh have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,2002 City of Chula Vista By: Shirley Horton Mayor Attest: Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Dated: July 10, 2002 Marsh Risk and Insurance Services By: UfìC~ ILULJ "'õr \J P [Name of person, title] By: [Name of person, title] 11 ! ~ ~3Ç; Exhibit A to Agreement between City of Chula Vista ("City") and Marsh Risk and Insurance Services ("Marsh") 1. Effective Date of Agreement: July 10, 2002 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: business form] , a [insert 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Broker/Consultant: Marsh Risk and Insurance Services 5. Business Form of Consultant: () Sole Proprietorship () Partnership (X) Corporation 1 /6 -36 6. Place of Business, Telephone and Fax Number of Consultant: 4445 Eastgate Mall, Suite 300 San Diego, CA 92121-1979 Phone: (858) 552-4200 Fax: (858) 542-4299 7. General Duties: To perform for the City consulting and brokerage services as described in Paragraph 8, Scope of Work and Schedule below. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Consultinq Services: (1) Review annually the design of the Flexible Benefit Plan to determine its continued viability in the ever-changing health care environment This includes: o Redesigning medical, dental, life, and short term and long-term disability plans. o Obtaining experience reports from benefit providers and provide interpretation of such reports to the City. o Proactively providing advice to the City concerning innovative plans and solutions in the areas of plan design and funding alternatives to make the City's employee benefits plans state-of- the-art. (2) To gather data in order to ascertain employees' benefit needs, levels of satisfaction, benefit educational needs and any other pertinent information. (3) To assist the City with the implementation and communication of new programs or changes to existing programs, which includes attending open enrollment meetings if necessary. (4) To assist the City with collective bargaining activities related to the employee benefits programs, including attendance at meetings with representatives from the City and various bargaining units. 2 Ib -37 (5) To review the contracts, plan documents, enrollment materials, and plan booklets provided by the employee benefit plan companies to conform to proposal selected by City. (6) To organize annual Benefits Fair. (7) To provide employee benefits advice and updates on federal, state, and insurance industry issues and innovations that could affect the City's benefit programs, including advice on implementation of same. @1 To have a working knowledge of the Internal Revenue Service rules and guidelines applicable to the City's benefit plans and apply such knowledge to the performance of services hereunder. (9) To assist the City with the resolution of disputed claims. (10) To advise and assist the City with non-discrimination testing for required plans. (11) Such other services as the parties agree to from time to time. Broker Services: (1) As requested by the City, negotiate the terms, rates and conditions for the City in the placement of insurance coverages. (2) To have access to, and a broad knowledge base of, all insurance markets and to negotiate with insurance companies and HMOs on the City's behalf for the best terms, conditions, and pricing. The City will receive marketing timeline, market list, advance set of specifications, as well as comprehensive final report detailing analysis and recommendations. (3) To develop Requests for Proposals for any benefits plans for which the City desires competitive proposals. (4) To review and evaluate proposals received, and make recommendations to the City regarding the most attractive proposal. Such recommendations must consider provider networks, benefit plan design, reputation for quality service, and short-term and long-term costs. 3 /0 -3E (5) To maintain an ongoing relationship with City personnel and selected providers acting as liaison to resolve problems between the City and providers. (6) It is understood that Marsh will not independently verify or authenticate Client-provided information necessary to prepare underwriting submissions and other documents relied upon by insurers, and the City shall be solely responsible for the accuracy and completeness of such information and other documents furnished to Marsh and/or insurers and shall sign any application for insurance. (7) Marsh will not be responsible for the solvency or ability to pay claims of any insurance carrier. Insurers with whom the City's risks are placed will be deemed acceptable to the City, in the absence of contrary instructions from the City. (8) Marsh is entitled to receive and retain placement service revenue, wholesale commissions and similar payment. B. Date for Commencement of Broker/Consultant Services: (X) Same as Effective Date of Agreement C. Date for completion of all Broker/Consultant services: This is a three (3) year Agreement and shall commence on July 10, 2002. This Agreement may be extended for three additional periods of one (1) year with mutual consent by Marsh subject to Council approval in its sole discretion. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance: $1,000,000. per accident (X) Employer's Liability Insurance coverage: $1,000,000. per accident (X) Commercial General Liability Insurance: $1,000,000. per occurrence/aooreoate (X) Errors and Omissions Insurance: $1,000,000 (included in Commercial General Liability coverage). Per claim () Errors and Omissions Insurance: $25,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Marsh: (X) Broker/Consultant Agreement between City and Marsh. (X) All available documents related to the administration of the City's benefits including related City policies and procedures. 4 I h ~3t} 11. Compensation: For performance of all of the Defined Services by Consultant as herein required, the Consultant shall be compensated for the all the Defined Services by commissions from, but not limited to, the insurance companies and health maintenance organization that provide the following coverages to the City: o Medical Coverage [J Dental Coverage o Life Insurance o Short-term/Long-term Disability Insurance Marsh will receive its compensation for all services provided via commissions. Commission arrangements will be handled by Marsh through negotiations with insurance providers and are subject to the City's approval. Marsh shall provide the City with detailed monthly statements of account commissions received no later than 45 days after the end of the month. In addition as is the custom in Marsh's industry, Marsh has agreements with certain insurers under which Marsh may receive payments based upon such factors as the overall book of business placed by it and its affiliates, the performance of that book or the aggregate commissions paid for that book. Such "placement services revenue" would be in addition to any other compensation Marsh may receive such as retail, excess and surplus lines and wholesale brokerage fees or commissions, administrative fees and similar items. The applicable profit sharing arrangements will be fully disclosed each year. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Marsh in the performance of services herein required, City shall pay Marsh at the rates or amounts set forth below: (X) None, the compensation includes all costs. 13. Contract Administrators: City: Teri Enos Risk Manager Human Resources Department Risk Management Division Consultant: Linda Keller Employee Benefit Department Manager Marsh Risk and Insurance Services 5 /& - 'ItJ 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. 6 If? -If/ COUNCIL AGENDA STATEMENT Item No.: t r~ Meeting Date: 07/09/02 ITEM TITLE: Report; Consideration of the establishment of a General Plan Update Steering Committee and three Subcommittees Resolution Authorizing the formation of committees in conjunction with the General Plan Update, approving a committee structure to include a Steering Committee and three Subcommittees, and making provisions related to the membership thereto and operation thereof SUBMITTED BY: Director of Planning and B~d?l~g~/~'~./.~z REVIEWED BY: City M~~~ (4/5ths Vote: Yes No X ) As part of its actions on the General Plan Update Public Outreach & Participation Program on April 9, 2002, Council approved a draft approach for the use of committees to help guide the process and assist in preparation of the Plan. The General Plan Management Team has since prepared a specific proposal for Council action, consisting of a Steering Committee and three Subcommittees covering Economic Development, Environment & Open Space, and Infrastructure & Services. The proposed committees incorporate representation from key community stakeholder interests, select City boards and commissions, and residents. RECOMMENDATION: That Council approve the proposed committees' formation and structure, and direct staff to proceed with completing the selection of members for Council ratification. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Background On April 9, 2002, the City Council approved a comprehensive Public Outreach & Participation Program to include a broad range of community input and involvement in the General Plan Update. The following three major forms of input were included: Town Hall Meetings - which would be held at key points during the Update process to gather initial public input on community issues and concerns, share results of this input along with information from area-wide studies and technical reports, and to discuss and Page 2, Item No.: I r/ Meeting Date: 07/09/02 shape the resulting land use and transportation alternatives to be included in the General Plan. "Visioneer" Program- which involves citizens who volunteer their time to collect input from individuals and members of groups, organizations, neighborhoods, and communities to which they belong. Standardized input cards ask questions regarding people's feelings about current needs and the future of Chula Vista. The Visioneer program will also be used to discuss community-level land use planning proposals later in the process. Advisory Committees- in addition to town hall meetings and visioneers, the appointment of committees was intended to provide ongoing oversight and input to the Update process itself, and to the overall objectives and vision for the General Plan. Committees were also seen as a means for stakeholders to ensure that the various Areawide Studies contained the information and analysis necessary to make appropriately informed decisions. Since April, staff has focused on commencing the first two of these input methods, and in working with the General Plan Management Team (GPMT) to finalize the proposed structure and membership of the advisory committees. Staff is now returning to Council for action on this structure and membership so that actual member appointments can be completed, and the committees can hopefully begin their work in August. Overview of the Proposed Committee Structure and Membership The proposed committee structure would consist of a Steering Committee, and three Subcommittees tied to each of the major topic areas of the General Plan Update (GPU); Economic Development, Environment & Open Space, and Infrastructure & Services. The committees are intended as a means for ongoing involvement in the Update by key stakeholder interests, members of City boards and commissions, and residents. All the committees are intended to operate under consensus-based decision making. In the limited instance that a selected member of a committee may not be a City resident (i.e. one or more of the regional environmental group representatives on the Environment & Open Space Subcommittee), then that member shall serve in an ex-officio capacity. Attachment 1 presents a diagram of the proposed committees' organization and makeup which is described below. Steering Committee The Steering Committee is intended to primarily provide oversight to the GPU process, and to build and sustain community leadership for the project. It would serve to facilitate communication among key stakeholders by providing a conduit for sharing information, issues and the perspectives of diverse interests in the community. In this capacity, it would be used to guide establishment of a common, citywide vision, and to Page 3, Item No.: [ ~] Meeting Date: 07/09/02 keep everyone moving in that direction by providing the opportunity to monitor how each stakeholder is advancing the process and meeting objectives. The Steering Committee would also be used to synthesize information coming from the Areawide Studies and the Subcommittees in the developmem of land use and transportation alternatives for the GPU. In order to reflect a complete compliment of the community, the Steering Committee is proposed to consist of 12 members as follows: · Seven (7) members would represent each of the key community stakeholder interests (business, education, environment, community services, housing, finance/real estate, and transportation). In order to enhance continuity and communication between the Steering Committee and the Subcommittees, three of these 7 positions (business, environment, and community services) would be filled by an appointee from each of the Subcommittees. · Four (4) members would be residents representing the main geographic subareas of the City (northwest, southwest, east, unincorporated). The unincorporated area (Bonita/Sunnyside) representative is proposed to serve in an ex-officio capacity. · One (1) member from the Planning Commission. Subcommittees The three proposed Subcommittees (Economic Development, Environment, Open Space & Sustainable Development, and Infrastructure & Services) are primarily intended to serve as a means to identify and discuss issues and concerns, opportunities and constraints, and key values and objectives related to each of the subject areas. They will also review information from related Areawide Studies as it regards these topics, and advance this information and any recommendations to the Steering Committee. To ensure that varying perspectives on each of the Subcommittees' focus topics are reflected, each Subcommittee consists of 13-14 people and includes representation from select City boards and commissions, community organizations and residents. Following is the proposed membership structure for each of the 3 Subcommittees: Economic Development Subcommittee- · The proposed fourteen (14) members are comprised of the complete, existing membership of the City's Economic Development Commission (EDC) (9 voting, plus 5 ex-officio). As shown by the dashed boxes under the Economic Development Subcommittee on Attachment 1, the EDC is somewhat unique in 17-B Page 4, Item No.: ~ Meeting Date: 07/09/02 that it already has a broad-based membership which contains representation from the key components of economic development considerations. The EDC membership has also been directly participating for a number of months in the preparation of the City's Economic Development Strategy (EDS). The EDS is the main General Plan Areawide Study that the Subcommittee will be working with. Staff has discussed this proposal with the EDC who is in agreement. Environment, Open Space, & Sustainable Development Subcommittee (13 members) All seven (7) members of the City's current Resource Conservation Commission (RCC) would serve as the core membership. The RCC contains a good cross- section of local environmental perspectives. Staff has discussed this proposal with the RCC who is in agreement. · Four (4) members would represent regional environmental groups and sustainable development interests such as the Sierra Club and Audubon Society. Any of these representatives who are not City residents would be appointed as ex-officio members. · One (1) member from the current Otay Valley Regional Park Citizens Advisory Committee is intended to represent perspectives on the recreational use of open space. · One (1) member from the City's Nature Center Board of Trustees is intended to represent local resource perspectives. Infrastructure & Services Subcommittee (13 members)- All nine (9) members of the City's current Growth Management Oversight Commission (GMOC) would serve as the core membership. The GMOC's membership already reflects a number of local facility and service perspectives, and includes residents from geographic subareas of the City. Participation also provides an opportunity to respond to the GMOC's recent request to become more involved in forward planning efforts, which was presented to the Council on May 30, 2002, as part of the GMOC's Annual Report. Staff has discussed this proposal with the GMOC who is in agreement. · One (1) member from the City's Cultural Arts Commission One (1) member from the Chula Vista Coordinating Council is intended to represent the interests of the local health and human services community. · One (1) member of the City's Housing Advisory Commission is intended to represent local housing needs and issues. Page 5, Item No.: ~ '~ Meeting Date: 07/09/02 · One (1) member from the City's Parks & Recreation Commission is intended to represent local park and recreation facility and service needs. It should be noted that in addition to the appointed membership on the committees, it is intended that various city staff expertise, and individuals from outside agencies and organizations will be asked to attend meetings from time-to-time to provide and discuss information, and to otherwise serve as technical advisors to the committees. Selection and Appointment of Members The selection and appointment of Steering Committee and Subcommittee members will be administered through the General Plan Management Team (GPMT), with ratification by the City Council, except in cases where commissions or groups are asked to designate one of their members to serve. In those instances, the GPMT will simply inform the Council of the designee selected by that commission or group. The selection and appointment process consists of the following three pieces which are outlined in Attachment 2. Staff will return to Council by early August with proposed members requiring Council ratification. Member appointments made by the Council with action on this report- As noted earlier, the City's current Economic Development Commission (EDC), Resource Conservation Commission (RCC) and Growth Management Oversight Commissions (GMOC) members would become the core membership of each of the SubcommiRees respectively (Economic Development, Environment & Open Space, Infrastructure & Services). In the case of the EDC, it would serve as the entire membership of the Economic Development Subcommittee. Should Council approve the attached resolution to establish the committees, that action would also appoint the EDC, RCC and GMOC membership to the Subcommittees as noted above. No further action by Council would be needed for those members. Member appointments to be returned to Council for ratification- Subsequent to Council's action on tonight's report, the following committee positions would be solicited through the GPMT who would then recommend proposed members for Council ratification: Steering Committee positions for- - Education - Housing - Transportation - Finance/Real Estate - Residents At-Large (north, south, east, unincorporated (ex-officio)) Page 6, Item No.: [ '~ Meeting Date: 07/09/02 To solicit prospective residents at-large members, staff will send a letter to all persons participating as "visioneers" asking if they, or someone else they would like to nominate, are interested in serving on the Steering Committee. Members must reside within the respective areas. Environmental & Open Space Subcommittee positions for- - (4) Regional environmental & sustainable development interests Member Appointments not requiring further Council action Three of the positions on the Steering Committee are to be filled by persons representing each of the Subcommittees, and are proposed to be selected by each of the Subcommittees at their first meeting. Several of the Subcommittee positions are to represent City boards or commissions or an outside group/agency, and are proposed to be selected by that entity to represent them. In these instances, further action by the Council is not required, however, the GPMT will notify the Council of the selections made. These are the positions that are affected: Steering Committee- - Business (to be filled by a member of the Econ. Devel. Subcommittee) - Environment (to be filled by a member of the Env. & O.S. Subcommittee) - Community Services (to be filled by a member of the Infra. & Serv. Subcom.) Subcommittees- - OVRP CAC representative (Env. & O.S. Subcommittee) - Nature Center Board of Trustees representative (Env. & O.S. Subcommittee) - Chula Vista Coordinating Council representative (Infra. & Serv. Subcomm.) - Cultural Arts Commission representative (Infra. & Serv. Subcomm.) - Housing Advisory Commission representative (Infra. & Serv. Subcomm.) - Parks & Recreation Commission representative (Infra. & Serv. Subcomm.) Operational Guidelines for the Committees In order to provide documentation as to the structure, roles, functions and operation of the Steering Committee and the Subcommittees, staff has prepared an "Operational Guidelines" document for each. They are included in Attachments 3A through 3D, and will be established through Council's action on the Resolution accompanying this report. FISCAL IMPACT: None. Staff time and materials associated with supporting the committees were included with the General Plan Update budget previously approved by Council. Page 7, Item No.: 1 ~ Meeting Date: 07/09/02 Attachments Committees Organizational Diagram 2. Overview of Membership Selection 3. Operational Guidelines for the Committees 3.^ Steering Committee 3.B Economic Development Subcommittee 3.c Environment, Open Space & Sustainable Development Subcommittee 3.v Infrastructure & Services Subcommittee J:\Planning\ed\GP Public Ouu~each\GP Committees Al 13 07-02~)2.doc t'7-7 g = o ~'-- 0 ~o~-~ oooo · · ~ · · oE~ · , o moo ~ : o~So~ o o o o o o ~-o~ . ~'-- ~'-- ~ ~ ~ ~ 0 ~ C~C'~ ~ ~ O O ~ CO 17-5 ATTA~HM~UT DRAFT (7/02/02) CITY OF CHULA VISTA GENERAL PLAN UPDATE STEERING COMMITTEE OPERATIONAL GUIDELINES COMMITTEE STRUCTURE AND MEMBERSHIP: The General Plan Update Steering Committee (GPSC) is comprised of 12 members representing key stakeholder groups in the community, residents from each of 4 major geographic subareas in the City, and a member of the Planning Commission as outlined below. The committee is intended to be broadly representative of the community's diversity, and includes a complement of persons reflective of the entire community. · One representative each from the following 7 constituencies: } Community Services (l) ~ Education ~' Business (2) ~ Transportation )~ Housing ~ Environment (3) ~ Financial/Real Estate (1) Position to be filled by a member of the Infrastructure & Services Subcommittee, as selected by that Subcommittee's membership. (2) Position to be filled by a member of the Economic Development Subeommittee, as selected by that Subcommittee's membership. (3) Position to be filled by a member of the Environment, Open Space & Sustainable Development Subcommittee, as selected by that Subcommittee's membership. Members for the other positions will be recommended by the General Plan Management Team and ratified by the City Council. One at-large resident from each of the following 4 major geographic subareas of the City. Preferably, these members should be individuals who are not redundant of the above constituencies, and at least one of which does not have any special interest group affiliation. )~ North ~ South ~ East ~ Unincorporated (Ex-officio) I'7-/O AT1-Aal4M NT General Plan Steering Committee- Draft Operational Guidelines July 2, 2002 Page 2 Members will be recommended by the General Plan Management Team and ratified by the City Council. · One member fi.om the City Planning Commission who will be designated by the Planning Commission GENERAL FUNCTIONS AND DUTIES: The GPSC will serve primarily as an oversight group to build and maintain community participation and ownership in the General Plan Update (GPU) process, and to ensure that the broad-based interests and desires of the community are reflected in the proposed plan alternatives, and the goals, objectives and policies of the GPU. Their general functions and duties would be to: · Enhance public participation and awareness, and build community leadership, trust, and a sense of corrununity for the GPU process. · Review and provide input on an overall mission, vision & values statement for the GPU process. · Review and provide input on GPU process goals & objectives, and define a course that others can rally around · Provide a sounding board for monitoring progress of the overall GPU work program, and outreach efforts to the general public to keep everyone moving in the same direction. · Provide a collaborative decision making framework, and facilitate communication among the various stakeholders by providing a conduit for sharing information, issues, and the perspectives of diverse interests in the community. · Considering public input, review and provide input on key issues and objectives for the GPU, and assist in forming community consensus for these. · Discuss existing conditions, opportunities and constraints, and the issues they raise from the perspectives of various stakeholders. · Consider periodic reports fi.om the Subcommittees, and relationships to other aspects of the GPU program. · Resolve any conflicts which may arise from the input or recommendations fi.om, or among the three General Plan Subcommittees. · Identify linkages between issues, and work to create balance, and address conflicts and tradeoffs by employing diverse points of view. /'7-// GeneralPlanSteeringCommiaee-D~affOperafionalGuidelines July 2, 2002 Page 3 · Review and provide input on altemative growth & development strategies based on issues, visions and values. · Review and discuss land use and transportation alternatives for the GPU taking into consideration areawide study information, and the issues and perspectives from inputs from each of the three Subcommittees. · Provide input to the development of GPU goals, objectives and policies · Build and maintain stakeholder consensus and buy-in to final plan alternatives, and a preferred alternative TERM OF SERVICE AND ATTENDANCE · The term of service for all members shall be through the duration of the General Plan Update. Upon adoption of the General Plan Update by the City Council, the Steering Committee shall be sunset, unless othev~vise determined by the City Council. · Member attendance at meetings is critical to the Committee's function. Members should plan to attend 90 percent of the meetings. Should a member miss two (2) meetings in a row, or more than three (3) meetings total, the chair will have the right to consider whether to replace that member. · Any member who cannot make a meeting should provide 24 hour advance notice to the chair or city General Plan staff. OPERATION OF MEETINGS · The Committee will appoint a chair and vice chair for the purposes of meeting conduct. · Meetings will be held approximately once per month (typically in the evenings) as the chair calls. · Standard meeting location would be in the City's Public Services Building, although it may be preferable, at times, to hold a meeting in different parts of the City. · Meetings would be open to the public and notices would be posted at the City's Public Services Building. Agendas and synoptic minutes would be prepared. · Meetings of the Committee, and notices thereof, will be governed by the same roles and regulations by which other city boards & commissions are bound to in the conduct of public meetings. General Plan Steering Committee- Draft Operational Guidelines July 2, 2002 Page 4 · Decision making and any recommendations by the Committee will be by consensus. · Seven (7) members will constitute a quorum for conduct of the Committee's business. (J:\planning\ed\gp public outreach\GPSC 07~02-02.doc) DRAFT (7/02/02) CITY OF CHULA VISTA GENERAL PLAN UPDATE ECONOMIC DEVELOPMENT SUBCOMMITTEE OPERATIONAL GUIDELINES COMMITTEE STRUCTURE AND MEMBERSHIP: The General Plan Update Economic Development Subcommittee (GPEDS) is comprised of all 14 members of the City's current Economic Development Commission (EDC). Use of the current EDC to also serve as the GPEDS is an outgrowth of the intent that the following economic development interests be represented on the Subcommittee: ~ Local business ~ Finance & real estate ~ International trade ~ Regional economic development ~, Jobs-housing balance ~ Tourism ~ Workforce development ~ Marketing and image The Subcommittee will select one of its members to serve as the "Business" representative on the General Plan Update Steering Committee. GENERAL FUNCTIONS AND DUTIES: The GPEDS will serve primarily to identify and discuss issues and concerns, opportunities and constraints, and key values and objectives related to economic development and fiscal considerations for the GPU. They will also review information from select areawide studies, and advance this information and any comments or recommendations to the Steering Committee. Their general functions and duties would be to: Represent the interests and perspectives of economic development in the GPU p~ocess · Represent economic development and fiscal interests on the General Plan Update Steering Committee · Assist in identifying solutions that will work, and supporting buy-in and consensus- building. · Review and provide input on key issues and objectives related to economic development and fiscal considerations for the GPU. · Provide overnight and input to the content & preparation of areawide studies related to economic development and fiscal issues including the Economic Development Strategy, the Fiscal Impact Analysis, and any Economic Development Element of the General Plan that may be developed. General Plan Update Economic Development Subcommittee- Draft Operational Guidelines July 2, 2002 Page 2 Review initial outcomes of attendant Areawide Studies and discuss responses & reactions to the information relative to: · Major themes or issues · Possible policy topic areas · Land use and transportation considerations or implications · Considerations as to how to ensure issue or policy topics get appropriately addressed · Suggested GPU goals, objectives and policies. Provide input as to maintaining balance on issues, ~'adeoffs and any conflicts related to the subcommittee's purview. · Provide input and feedback on land use & transportation alternatives relative to their consideration of, and response to, economic development and fiscal issues. · Review and provide input on GPU goals, objectives & policies related to economic development and fiscal matters. · Provide periodic reports to the Steering Committee on the status and outcomes of the Subcommittee's work TERM OF SERVICE AND ATTENDANCE The term of service for all members shall be through the duration of the General Plan Update. Upon adoption of the General Plan Update by the City Council, the Economic Development Subcommittee shall be sunset, unless otherwise determined by the City Council. · Member attendance at meetings is critical to the Subcommittee's function. Members should plan to attend 90 percent of the meetings. Should a member miss two (2) meetings in a row, or more than three(3) meetings total, the chair will have the right to consider whether to replace that member. · Any member who cannot make a meeting should provide 24 hour advance notice to the chair or city General Plan staff. OPERATION OF MEETINGS · The chair and vice chair of the EDC will also serve as the chair and vice chair of the Subcommittee for the purposes of meeting conduct. · Meetings will be held approximately once per month (typically in the evenings) as the chair calls, and may be held in conjunction with a meeting of the EDC. · Standard meeting location would be in the City's Public Services Building, although it may be preferable, at times, to hold a meeting in different parts of the City. General Plan Update Economic Development Subcommittee- Draft Operational Guidelines July 2, 2002 Page 3 · Meetings would be open to the public and notices would be posted at the City's Public Services Building. Agendas and synoptic minutes will be prepared. Meetings of the Subcommittee, and notices thereof, will be govemed by the same roles and regulations by which the EDC is bound in the conduct of public meetings. · In accordance with provisions of the Brown Act, all meetings of the Subcommittee shall be noticed as joint meetings of the EDC. · Decision making and any recommendations by the Committee will be by consensus. · Eight (8) members will constitute a quorum for conduct of the Subcommittee's business. (J:\plarming\ed\gp public outreachXGPEDS 07-02-02.doc) /71/ DRAFT (7/02/02) CITY OF CHULA VISTA GENERAL PLAN UPDATE ENVIRONMENT, OPEN SPACE & SUSTAINABLE DEVELOPMENT SUBCOMMITTEE OPERATIONAL GUIDELINES COMMITTEE STRUCTURE AND MEMBERSHIP: The General Plan Environment, Open Space & Sustainable Development Subcommittee (GPEOSDS) is comprised of 13 members representing a broad range of local and regional interests as outlined below. · All seven (7) members of the City's Resource Conservation Commission (RCC). · Four (4) members representing regional environmental groups and sustainable development interests (e.g. Sierra Club, Audubon Society, etc.). Members for these positions will be recommended by the General Plan Management Team and ratified by the City Council. Any of these members who are not City residents will be ex-officio. · One (1) member from the Otay Valley Regional Park Citizens Advisory Committee, to be selected by that Committee. · One (1) member from the Nature Center Board of Trustees, to be selected by that Board. The Subcommittee will select one of its members to serve as the "Environment" representative on the General Plan Update Steering Committee. GENERAL FUNCTIONS AND DUTIES: The GPEOSDS would serve primarily to identify and discuss issues and concerns, opportunities and constraints, and key values and objectives related to environmental considerations for the GPU. They will also review information from select areawide studies, and advance this information and any comments or recommendations to the Steering Committee. Areawide study topics for this Subcommittee include environmental baseline studies, natural systems and biology, water supply and conservation, energy, solid and hazardous waste, air quality, and the environmental impact report for the GPU. Their general functions and duties would be to: · Represent the interests and perspectives of various environmental constituencies in the GPU process. · Represent these interests on the General Plan Update Steering Committee. General Plan Update Economic Development Subcommittee- Draft Operational Guidelines July 2, 2002 Page 2 · Assist in identifying solutions that will work, and supporting buy-in and consensus- building. · Review and provide input on key issues and objectives related to environmental, open space and sustainable development considerations for the GPU. · Provide oversight and input to the content & preparation ofareawide studies related to Subcommittee's purview as noted above. · Review initial outcomes of attendant areawide studies and discuss responses & reactions to the information relative to: · Major themes or issues · Possible policy topic areas · Land use and transportation considerations or implications · Considerations as to how to ensure issues or policy topics get appropriately addressed · Suggested GPU goals, objectives and policies. · Provide input as to maintaining balance on issues, tradeoffs and any conflicts related to the Subcommittee's purview. · Provide input and feedback on land use & transportation alternatives relative to their consideration of, and response to, environmental, open space and sustainable development issues. · Review and provide input on GPU goals, objectives & policies related to environmental, open space and sustainable development matters. · Provide periodic reports to the Steering Committee on the status and outcomes of the Subcommittee's work TERM OF SERVICE AND ATTENDANCE · The term of service for all members shall be through the duration of the General Plan Update. Upon adoption of the General Plan Update by the City Council, the Economic Development Subcommittee shall be sunset, unless otherwise determined by the City Council. · Member attendance at meetings is critical to the Subcommittee's function. Members should plan to attend 90 percent of the meetings. Should a member miss two (2) meetings in a row, or more than three (3) meetings total, the chair will have the right to consider whether to replace that member. · Any member who cannot make a meeting should provide 24 hour advance notice to the chair or city General Plan staff. General Plan Update Economic Development Subcommittee- Draft Operational Guidelines July 2, 2002 Page 3 OPERATION OF MEETINGS · Thc chair and vice chair of the RCC will also serve as the chair and vice chair of the Subcommittee for the purposes of meeting conduct. · Meetings will bc held approximately once per month (typically in the evenings) as the chair calls, and may be held in conjunction with a meeting of the RCC. · Standard meeting location would be in the City's Public Services Building, although it may be preferable, at times, to hold a meeting in different parts of the City. · Meetings would be open to the public and notices would bc posted at the City's Public Services Building. Agendas and synoptic minutes will be prepared. · Meetings of the Subcommittee, and notices thereof, will be governed by the same rules and regulations by which the RCC is bound in thc conduct of public meetings. · In accordance with provisions of the Brown Act, all meetings of the Subcommittee shall bc noticed as joint meetings of the RCC. · Decision making and any recommendations by the Subcommittee will be by consensus. · Seven (7) members will constitute a quorum for conduct of the Subcommittee's business. (J:\planning\ed\gp public outreach\GPEOSDS 07-02-02.doc) DRAFT (7/02/02) CITY OF CHULA VISTA GENERAL PLAN UPDATE INFRASTRUCTURE & SERVICES SUBCOMMITTEE OPERATIONAL GUIDELINES COMMITTEE STRUCTURE AND MEMBERSHIP: Tl~e General Plan Infrastructure & Services Subcommittee (GPISS) is comprised of 13 members representing a broad range of local interests as outlined below. All nine (9) members of the City's Growth Management Oversight Commission (GMOC). · One (1) member from the City's Cultural Arts Commission, who will be selected by that Commission. · One (1) member from the Chula Vista Coordinating Council, to be selected by that Council. · One (1) member from the City's Housing Advisory Commission, to be selected by that Commission. · One (1) member from the City's Parks & Recreation Commission, to be selected by that Commission The Subcommittee shall select one of its members to serve as the "Community Services" representative on the General Plan Update Steering Committee. GENERAL FUNCTIONS AND DUTIES: The GPISS will serve primarily to identify and discuss issues and concerns, opportunities and constraints, and key values and objectives related to infrastructure and community services considerations for the GPU. They will also review information from select areawide studies, and advance this information and any comments or recommendations to the Steering Committee. Areawide study topics for this Subcommittee include transportation, all City services, schools, water system, health and human services, and cultural ans. Their general functions and duties would be to: · Represent the interests and perspectives of infrastructure and community services providers in the GPU process. · Represent these interests on the General Plan Update Steering Committee. · Assist in identifying solutions that will work, and supporting buy-in and consensus- building. ['7-2.0 ^TTAx: I..-tH E--NT 31) General Plan Update Economic Development Subcommittee- Draft Operational Guidelines July 2, 2002 Page 2 · Review and provide input on key issues and objectives related to these infrastructure and community services considerations for the GPU. · Provide oversight and input to the content & preparation of the Public Facilities & Services areawide study. · Review initial outcomes of attendant Areawide Studies and discuss responses & reactions to the information relative to: · Major themes or issues · Possible policy topic areas · Land use and transportation considerations or implications · Considerations as to how to ensure issues or policy topics get appropriately addressed · Suggested GPU goals, objectives and policies. · Provide input as to maintaining balance on issues, tradeoffs and any conflicts related to the Subcommittee's purview. · Provide input and feedback on land use & transportation alternatives relative to their consideration of, and response to, infrastructure and community services issues. · Review and provide input on GPU goals, objectives & policies related to infrastructure and community services matters. · Provide periodic reports to the Steering Committee on the status and outcomes of the Subcommittee's work. TERM OF SERVICE AND ATTENDANCE · The term of service for all members shall be through the duration of the General Plan Update. Upon adoption of the General Plan Update by the City Council, the Infrastructure & Services Subcommittee shall be sunset, unless otherwise determined by the City Council. · Member attendance at meetings is critical to the Subcommittee's function. Members should plan to attend 90 percent of the meetings. Should a member miss two (2) meetings in a row, or more than three (3) meetings total, the chair will have the right to consider whether to replace that member. · Any member who cannot make a meeting should provide 24 hour advance notice to the chair or city General Plan staff. OPERATION OF MEETINGS · The chair and vice chair of the GMOC will also serve as the chair and vice chair of the Subcommittee for the purposes of meeting conduct. · Meetings will be held approximately once per month (typically in the evenings) as the chair calls, and may be held in conjunction with a meeting of the GMOC. General Plan Update Economic Development Subcommittee- Draft Operational Guidelines July 2, 2002 Page 3 · Standard meeting location would be in the City's Public Services Building, although it may be preferable, at times, to hold a meeting in different parts of the City. · Meetings would be open to the public and notices would be posted at the City's Public Services Building. Agendas and synoptic minutes will be prepared. · Meetings of the Subcommittee, and notices thereof, will be governed by the same rules and regulations by which the GMOC is botmd in the conduct of public meetings. · In accordance with provisions of the Brown Act, all meetings of the Subcommittee shall be noticed as joint meetings of the GMOC. · Decision making and any recommendations by the Subcommittee will be by consensus. · Seven (7) members will constitute a quorum for conduct of the Subcommittee's business. (J:\planning\ed\gp public outreach\GPISS 07-02-02.doc) RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE FORMATION OF COMMITTEES IN CONJUNCTION WITH GENERAL PLAN UPDATE, APPROVING A COMMITTEE STRUCTURE TO INCLUDE A STEERING COMMITTEE AND THREE SUBCOMMITTEES, AND MAKING PROVISIONS RELATED TO THE MEMBERSHIP THERETO AND OPERATION THEREOF WHEREAS, the City of Chula Vista had commenced work on a comprehensive update of the City's General Plan; and WHEREAS, on April 9, 2002, as part of its actions on approval of a public outreach & participation program for the General Plan Update, the City Council approved a draft proposal for the use of committees to help guide the process and assist in preparation of the Update; and WHEREAS, as part of that approval the City Council directed the General Plan Management Team (GPMT) to finalize the structure and membership composition for the committees, and return the proposal for Council action; and WHEREAS, the GPMT has completed that work and is returning the final proposal as directed; and WHEREAS, an organizational and membership diagram for the proposed Steering Committee, Economic Development Subcommittee, Environment, Open Space & Sustainable Development Subcommittee, and the Infrastructure & Services Subcommittee is attached hereto as Exhibit 1. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve formation of committees in conjunction with the General Plan Update, and makes partial membership appointments thereto, as follows: 1. The General Plan Update Steering Committee shall be formed and operaied in accordance with the "Operational Guidelines" for said committee as contained in Exhibit 2 attached hereto. 2. The General Plan Update Economic Development Subcommittee shall be formed and operated in accordance with the "Operational Guidelines" for said subcommittee as contained in Exhibit 3 attached hereto, and that the 14 members of the City's Economic Development Commission are hereby appointed to serve as that subcomanittee. 3. The General Plan Update Environment, Open Space & Sustainable Development Subcommittee shall be formed and operated in accordance with the "Operational Guidelines" for said subcommittee as contained in Exhibit 4 attached hereto, and that the 7 members of the City's Resource Conservation Commission are hereby appointed to serve as part of the subcommittee's membership. 4. The General Plan Update Infrastructure & Services Subcommittee shall be formed and operated in accordance with the "Operational Guidelines" for said subcommittee as contained in Exhibit 5 attached hereto, and that the 9 members of the City's Growth Management Oversight Commission are hereby appointed to serve as part of the subcommittee's membership. Presented by Approved as to form by Robert A. Leiter ~AtioKrnaeh;ny ~.// ' Planning and Building Director (h:/attorney/gp committees reso 7-02-02.doc) COUNCIL AGENDA STATEMENT Item I~ Meeting Date 7/9/02 ITEM TITLE: A. Resolution of the City Council of the City of ChulaVista, California, adopting a boundary map showing the boundaries of the territory proposed for inclusion in proposed Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Landswap Parcel) B. Resolution of the City Council of the City of Chula Vista, California, declaring its intention to establish Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Landswap Parcel) and to authorize the levy of a special tax therein to finance certain services C. Resolution of the City Council of the City of Chula Vista, California, ordering and directing the preparation of a Community Facilities District Report for proposed Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Landswap Parcel) SUBMITTED BY: Director of Public Works~ No× Eastlake has requested the City conduct proceedings to consider the approval of the formation of Community Facilities District No. 07M (CFD No. 07M). The conditions of approval of the tentative map for Eastlake III - Woods and Vistas and Land Swap Parcel require that said CFD be formed prior to issuance of the first production home building permit. This district will fund the perpetual operation and maintenance of slopes, medians and parkways and storm water treatment facilities associated with Eastlake III - Woods and Vistas and Land Swap Parcel (south parcel only). The City has retained the services of MuniFinancial as special tax consultant and Best Best and Krieger LLP as legal counsel to provide assistance during the proceedings. Tonight's action will initiate the formal proceedings to consider the establishment of CFD No. 07M. Page 2, Item [ ~ Meeting Date 7/9/02 RECOMMENDATION: That Council: 1. Approve the resolution adopting the boundary map for Community Facilities District No. 07M, 2. Approve the resolution declaring the intention to establish Community Facilities District No. 07M and to levy a special tax to finance certain services, and 3. Approve the resolution ordering and directing the preparation of the "Community Facilities District Report" for Community Facilities District No. 07M, BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On January 13, 1998, Council adopted the "City of Chula Vista Statement of Goals and Policies regarding the establishment of Community Facilities Districts" (the "Goals and Policies"). The approval of this document ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized public services. Taxes levied by maintenance districts, such as CFD No. 07M, are currently excluded from the 2% maximum tax criterion set forth in the Goals and Policies. On April 28, 1998, Council, acting under its Charter authority, enacted the "Chula Vista Community Facilities District Ordinance" (the "Ordinance"). The Ordinance adopted the Mello-Roos Act with modifications to accomplish the following: 1) incorporate all maintenance activities authorized by the "Landscaping & Lighting Act of 1972" ("1972 Act"), 2) include certain maintenance activities not listed in the "Mello-Roos Act" or the "1972 Act", and 3) establish an operating reserve fund for open space districts. CFD 07M will provide the necessary funding for the operation and maintenance of public landscaping and storm water improvements serving Eastlake III - Woods and Vistas and Land Swap Parcel (south parcel only) by levying an annual "special tax", which is collected from the property owners within CFD 07M in conjunction with the property taxes. There is no direct cost to the City. All expenses related to the district administration, including levying and collecting the special taxes, are also funded from such special taxes. The proposed CFD No. 07M is consistent with the above-mentioned Ordinance and the Goals and Policies. In addition, staff has met with the developer to discuss their concerns, clarify the intent of the Goals and Policies and Ordinance, and review the proposed special tax rates and the methodology for the apportionment of the special taxes. All of the issues raised by the developers have been discussed and solutions, satisfactory to all parties, have been incorporated in the "Rate and Method of Apportionment" (the Page 3, Item I~ Meeting Date 7/9/02 "RMA"). The RMA has also been modeled after similar open space maintenance districts in the surrounding area. Staff, the legal counsel, and the special tax consultant have reviewed the proposed RMA and consider it ready for council approval. Area of Benefit The proposed boundaries of CFD No. 07M encompass parcels located within the Eastlake III - Woods and Vistas and Land Swap Parcel. The district will be divided into two Improvement Areas based on benefit, one for Woods and Vistas and the other for the Land Swap area. Eastlake owns approximately 58% of the property within the proposed district boundaries. Eastlake III Woods and Vistas would contain approximately 1440 single-family detached homes, 612 multifamily units, 43 acres of commercial property, and 12.9 acres of Community Purpose Facility ("CPF") uses. The Land Swap is proposed to include 258 single-family detached residences, 199 multifamily units and 52.7 acres of commercial property. Staff has reviewed the proposed boundary map and has found it acceptable and ready for approval by Council. A reduced copy of the map is presented in Exhibit "C". Description of the Improvements to be Maintained The proposed CFD No. 07M will fund the operation and maintenance of the public landscaping and storm water treatment improvements within the Eastlake III - Woods and Vistas and Land Swap Parcel. A complete list of such improvements is presented in Exhibit "D". Cost Estimate The estimated annual budget for CFD No. 07M is approximately $553,798. This budget includes a total of $523,798 (includes additional 10% to fund an operating reserve) for maintenance; $30,000 for CFD administration (preparing reports, levying and collecting taxes, public assistance, etc.) by the Engineering Division. Staff (Public Works/Operations and Engineering) and MuniFinancial have reviewed and approved the proposed budget. Exhibit "E" contains a detailed annual budget for the district at buildout. Proposed Special Tax CFD 07M has four proposed categories of taxation, as follows: · Residential Developed Parcels (Single Family and Multi-Family Residences) are taxed based on the square footage of the structure. · Commercial Parcels are taxed on the acreage of the parcel. The Final Mapped properties which include all single family residential parcels for which a building permit has not been issued are taxed on acreage of the parcel. Page 4, Item / ~ Meeting Date 7/9/02 · Vacant land (Other Taxable property) is taxed on acreage of the parcel. · The Exempt Category includes all publicly owned parcels, Homeowner's Association parcels, and CPF property owned by non-profit organizations. Developed Parcels are those parcels for which a building permit has been issued. The proposed maximum special tax rate in the RMA on all Developed Parcels was determined by dividing the estimated annual budget at buildout (plus an operating reserve allocation of 10% of the annual budget) by the total estimated square footage of development at buildout (reduced by 15% to avoid a possible revenue shortfall in the event that the actual square footage of development does not meet the developer's current projections). The proposed maximum special tax rate in the RMA on vacant land has been determined by dividing the estimated annual budget at buildout (plus a reserve allocation of 10% of the annual budget) by the estimated net lot acreage within the district. Collection of Taxes At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability (budget plus reserve) of each Improvement Area. Then, the special taxes will first be levied on the Residential Developed Parcels. If this pool of funds is not enough to fund the Special Tax Liability, as may be the case in the early years of development, the district will levy the special tax on the vacant land starting with Final Mapped Property. The buffer of having the vacant land covering any portion of the Special Tax Liability not funded from special taxes levied on Residential Developed Parcels will disappear once the area has been fully developed. If the Special Tax Liability for any fiscal year is less than the maximum special tax authorized to be levied on the Developed Parcels, the actual rate of the special taxes to be levied in that specific year will be reduced accordingly. Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes": (See Exhibits "A" & "B" for full description of RMA) · The maximum special taxes rates shall be adjusted each year for inflation using a factor equal to the increase, if any, of the annual change of the San Diego Consumer Price Index. · The Ordinance requires that the developer maintain the landscape improvements for the minimum period of one year following their completion. During this period the District will collect the special taxes with the purpose of building up a six months operating reserve. The RMA provides that the annual budget for any Page 5, Item [~ Meeting Date 7/9/02 year may include an amount deemed necessary to maintain an adequate level of this operating reserve fund. The maximum special tax rates are based on the best estimate by the developer of the square footage of residential development within CFD 07M (reduced by 15%). This reduction in estimated total square footage of development has the net result of raising the maximum special tax that can be levied on future residential parcels to avoid a possible shortfall in special tax revenue in the event that the actual square footage of development is less than the projected square footage on which the computation of the special tax rates has been based. If the actual square footage of development meets or exceeds the projections on which the special tax rates were based, the actual special tax rate necessary to be levied annually to fund the Special Tax Liability may be less than the authorized maximum special tax. · The special tax formula provides that any cost due to delinquent special taxes on vacant land shall he apportioned to the Improvement Area where the delinquent parcels are located. · The annual budget used to calculate the special tax rates are only the "best estimates" of the cost of maintenance at buildout. There is always a risk that actual expenses in future years may be higher than the total maximum collectable special taxes. This may result in reduced levels of maintenance of landscaping, unless the property owners approve an increase in the special tax rates (2/3 voter's approval is required), which is considered unlikely. Staff believes, however, that the proposed maximum special tax rates contain enough of a cushion in the operating reserve, the inflation adjustment, and the assumed reduction, of total square footage of development to minimize the risk of future special tax revenue shortfalls. Proposed Maximum Special Taxes The proposed maximum special tax rates for fiscal year 2002/03 for a typical dwelling unit within Improvement Area No. 1 of CFD 07M is as follows: Unit Type with Average Square Footage Eastlake III Woods and Vistas Single Family Detached (Average Product Proposed for the Vistas at 2,600 SF) $280.80 Single Family Detached (Average Product Proposed for the Woods at 3,200 SF) $345.60 Multi-Family (Average Product Proposed for the Vistas at 1,200 SF) $129.60 Vacant Land $1,396.57/Acre Commercial $1,396.57/Acre Page 6, Item /c~ Meeting Date 7/9/02 The proposed maximum special tax rates for fiscal year 2002/03 for a typical dwelling unit within Improvement Area No. 2 of CFD 07M is as follows: Unit Type with Average Square Footage Land Swap Parcel Single Family Detached (Average Product Proposed for the $113.50 Land Swap at 1,620 SF) Multi-Family (Average Product Proposed for the Land $94.50 Swap at 1,350 SF) Vacant Land $1,054.95/Acre Commercial $1,054.95/ Acre Resolutions There are three resolutions on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION ADOPTING THE BOUNDARY MAP is the formal action adopting the map and setting forth the boundaries of the proposed Community Facilities District No. 07M. The RESOLUTION OF INTENTION is the jurisdictional resolution declaring the intention of the City Council to establish the proposed Community Facilities District No. 07M, authorize the levy of a Special Tax, and set the time and place for the public hearing. The RESOLUTION ORDERING THE PREPARATION OF THE "COMMUNITY FACILITIES DISTRICT REPORT" is the formal action of the City Council directing the preparation of a detailed report containing a description of the services and its estimated cost for the proposed Community Facilities District No. 07M. Future Actions The public hearing and consideration of the adoption of a resolution forming and establishing CFD No. 07M, and submitting the authorization for the levy of special taxes to the qualified electors are scheduled for the City Council meeting of August 13, 2002 at 7:00 P.M. FISCAL IMPACT All costs of formation of the district are being borne by the developers and the on-going administration will be funded entirely by the district. The City will receive the benefit of full cost recovering for staff cost involved in the following activities: 1) District Page 7, Item / ~ Meeting Date 7/9/02 formation (Staff cost estimated at $30,000, and 2) district administration in perpetuity (estimated annual staff cost each year is $18,000 and an additional $13,000 for the contractual administration for the Engineering Division.) Exhibits: "A" Rate and Method of Apportionment for Improvement Area No. 1 "B" Rate and Method of Apportionment for Improvement Area No. 2 "C" Boundary Map "D" List of Public Facilities to be maintained "E" Annual Budget J:\EngineerL~GENDA\ROI CFD 97M_7-9-02.doc Exhibit "A" CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 (Eastlake Woods and Vistas) A Special Tax of Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Landswap Parcel) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area No. 1 of the CFD and collected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionary equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer IA No. 1 of the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax R~uirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 07M of the City of Chula Vista. City of Chula Vista June20, 200~ CFD 07M, IA No. 1 Page 1 "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" or "IA No. 1" means Improvement Area No. 1 of the CFD, as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped areas within'the public right-of- ways, parkways, slopes, wetlands and other public easements throughout the CFI). "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. 1 for such Fiscal Year. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential stmcture consisting of two or more City of Chula Vista CFD 07M, IA No. 1 June 20, 2002 Page ? residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment units. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Operating Fund" means a fund that shall be maintained for IA No. 1 for each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Kequirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Undeveloped Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Property. "Property Owner Association Property" means any property within the boundaries IA No. 1 of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Spedal Tax is equal for all Assessor's Parcels of Taxable Properff within each Land Use Class. "Public Property" means any property within the boundaries of IA No. 1 of the CFI) that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County-, the City or any other public agency. "Reserve Fund" means a {und that shall be maintained for IA No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Spedal Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 1 to fund the Special Tax Requirement. CiO' of Chula Vista June 20, 200z CFD 07M, IA No. 1 Page 3 "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 1 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; ('iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property or Multi-Family Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, stoma drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 1. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. 1 for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 1 of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property includes: (i) Public Property, or (h) Property Owner Association Property, or (iii) Assessor's Parcels defined as Community Purpose Facility Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Property Owner Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within IA No. 1 of the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. City of Chula Vista CFD 0TM, L4 No. 1 June 20, 2002 Page 4 / -II Assessor's Parcels of CPF Property not dassified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is dassified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 07M Improvement Area No. 1 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 1 B~iclenfial Property $0.076 per Sq Ft $0.031 per Sq Ft $0.108 per Sq Ft 2 Multi-Family Property $0.076 per Sq Ft $0.031 per Sq Ft $0.108 per Sq Ft 3 Non-Residential Properv/ $991.98 per Acre $404.59 per Acre $1,396.57 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on such an Assessor's Parcel shall be the sum of the Maximum Spedal Tax levies that may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Clasi. 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 0TM Improvement Area No. 1 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 4 Final Map Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acre 5 Other Taxable Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acre 6 Taxable Property Owner $991.98 per Acre $404.59 per Acre $1,396.57 per Acre Association Property CiO~ of Chula Vista June 20, 2002 CFD 07M, IA No. 1 Page 5 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in IA No. I shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. 1 Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Spedal Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. 1 of the CFD. E. EXEMPTIONS The CFD Administrator shall dassify as exempt property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the iii ' organization's non-profit status, and ( ) Assessor s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. City of Chula Vista CFD 07M, IA No. I June 20, 2002 Page 6 The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Assodation Property provided that no such classification would reduce the sum of all taxable Property to less than 346.59 Acres. Assessor's Parcels defmed as Property Owner Assodation Property that cannot be classified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Spedal Tax and believes that the amount of the Spedal Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Spedal Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Spedal Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Spedal Tax and any landowner or resident appeals, as herein spedfied. The decision of the Review/Appeal Committee shall be final and binding as to all persons. IA No. 1 G. MANNER OF COLLECTION Spedal Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad zidoron property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Spedal Taxes at a different time or in a different manner if necessary to meet the finandal obligations of IA No. 1 of the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in IA No. 1 of the CED shall remain subject to the Special Tax in perpetuity. j:\EngineerkLANDDEVx.Project s\ Easdake Ili\CFD\clean Eastlake ffl RMA IA No.1 draft 9.doc City of Chula ~sta June 20, 200~ CFD 07M, IA No¢I Page 7 Exhibit "B" CITY OF CHUI_A VISTA COMMUNITY FACILITIES DISTRICT NO. 0TM RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 2 (Landswap Parcel) A Special Tax of Community Facilities District No. 071VI (Eastlake III Woods, Vistas and Landswap Parcel) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcds in Improvement Area No. 2 of the CFD and collected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rote and method of apportionment of the Spedal Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. Act means the Mello-Roos Commumty Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the admim'stration of the CFD; the costs of collecting installments of the Spedal Taxes; and any other costs required to administer IA No. 2 of the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an offidal of the City, or designee thereof, responsible for determining the Spedal Tax Requirement and providing for the levy and collection of the Spedal Taxes. "CFD" means Community Facilities District No. 0TM of the City of Chula Vista. City of Chula Vista June 20, 2002 CFD 07M, IA No. 2 Page I "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. ouncd means the C~ty Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of the CFD, as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped areas within the public right-of- ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. 2 for such Fiscal Year. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. CiG of Chula Vista CFD 07M, lA No. 2 June 20, 2002 Page ? "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apa~uxxent units. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential USe. "Operating Fund" means a fi~nd that shall be maintained for IA No. 2 {or each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Kequirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Undeveloped Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Propero/'. "Property Owner Association Prope~" means any property within the boundaries IA No. 2 of the CFD that is owned by, or irrevocably dedicated as indicated in an instrtunent recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the boundaries of IA No. 2 of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for IA No. 2 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. City of Chula Vista June 20, 20o~ CFD 07M, IA No. 2 Page 3 "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 2 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 2 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Yew, less 0o) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Pi'operty or Multi-Family Property, exduding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 2. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. 2 for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 2 of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property indudes: (i) Public Property, or (it) Property Owner Association Property, or (iii) Assessor's Parcels defined as Community Purpose Facility Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Property Owner Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. City of Chula Fista CFD 07M, IA No. 2 June 20, 2002 Page .I B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within IA No. 2 of the CFD shall be dassified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Spedal Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. Assessor's Parcels of CPF Property not dassified as exempt in accordance with Section E below shall be taxed as Non-Resldenfial Property when such Assessor's Parcel is dassified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be dassified as Other Taxable Property. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 07M Improvement Area No. 2 Land Landscape Storm Maximum Use Description Maintenance Wate~ Quality Special Tax Class Maintenance 1 Residential Property $0.056 per Sq Ft $0.014 per Sq Ft $ 0.070 per Sq Ft 2 Multi-Family Property $0.056 per Sq Ft $0.014 per Sq Ft $0.070 per Sq Ft 3 Non-Residential Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on such an Assessor's Parcel shall be the sum of the Maximum Spedal Tax levies that may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Class. City of Chula lqsta June 20, 200~ CFI> 0TM, IA No. 2 Page I -/0 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 07M Improvement Area No. 2 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 4 Final Map Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre 5 Other Taxable Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre 6 Taxable Property Owner $845.02 per Acre $209.93 per Acre $1,054.95 per Acre Association Property 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in IA No. 2 shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. 2 Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second.: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; Thir4: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; City of Chula Vista CFD 07111, IA No. 2 June 20, 2002 Page 6 Fourth: If additional moneys are needed to satisfy the Spedal Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Assodarion Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Assodation Property. Notwithstanding the above, under no circumstances will the Spedal Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. 2 of the CFD. E. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall dassify as exempt property those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all taxable Property to less than 76.23 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be dassified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Spedal Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a spedal three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Spedal Tax and any landowner or resident appeals, as herein spedfied. The decision of the Review/Appeal Committee shall be final and binding as to all City of Chula Vista June 20, 2002 CFD 07M, IA No. 2 Page 7 persons. IA No. 2 G. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad ¢adoron property taxes; provided, however, that the CFI) Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the £mancial obligations of IA No. 2 of the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in IA No. 2 of the CFI) shall remain subject to the Special Tax in perpetuity. C:\W1NDOWS\Tempora~y Internet Files\OLIOkl30\dean Ea~tlake Bi RMA IA No.2 draft 9.doc City of Chula l/ista CFII 07M, IA No. 2 June 20, 2002 Page 8 EXHIBIT "D" Community Facilities District No. 07M (Eastlake III Woods, Vistas and Landswap Parcel) City of Chula Vista, California LIST OF AUTHORIZED FACILITIES AND SERVICES Improvement Area No. 1 (Eastlake Woods & Eastlake Vistas) Landscaping Maintenance Hunte Parkway (North of Otay Lakes Road) · Median (between Otay Lakes Road and Eastlake's north boundary) Otay Lakes Road (From Hunte Parkway to Wueste Road) · Medians · North side of Otay Lakes Road East of Woods Drive to Wueste Road) Olympic Parkway (From SDG & E Easement to Hunte Parkway) · Medians (from Station 50+20to Hunte Parkway) · North side of Olympic Parkway Salt Creek Wetlands and slopes adjacent to wetland areas Storm Water Quality Maintenance · Eastlake Woods/Salt Creek detention basins: pipes, channels, structures, landscaping, · Eastlake Vistas infiltration basin located near Olympic Parkway and Wueste Road, and, · Pump Station south of Proctor Valley Road. Other Facilities directly related to removal of contaminants and solids from storm water throughout the Improvement Area including storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and similar facilities. Improvement Area No. 2 (Landswap Parcel) Olympic Parkway (from Future SR 125 to SDG & E Easement) · Medians · North side of Olympic Parkway Eastlake Parkway (From SDG & E Easement to Olympic Parkway) · Medians J:\EngineerkLANDDEVkProject s\Easdake III\CFDXEXHIBIT A - Imp for ROI v6.6-27-02.doc EXHIBIT "D" Community Facilities District No. 07M (Eastlake III Woods, Vistas and Landswap Parcel) City of Chula Vista, California LIST OF AUTHORIZED FACILITIES AND SERVICES Slopes between Future SR 125 and Landswap Parcel. Storm Water Quality Maintenance Facilities directly related to removal of contaminants and solids from storm water throughout the Improvement Area including storm drains, catch basin inserts, hydrodynamic devices, filtration basins, and similar fa 'ctlities. SUBSTITUTION OF FACILITES The description of the Facilities and Services, as set forth above, is general in its nature. The final nature and location of the Facilities and Services will be determined upon the preparation of final plans and specifications. The final plans may show substitutes in lieu of, or modification to, the proposed Facilities and Services in order to provide the public facilities necessitated by development occurring in the District, and any such substitution shall not be a change or modification in the proceedings as long as such substitute facilities and services serve a ftmction or provide a service substantially similar to that function served or the service provided by the Facilities and Service described above. J:\Eng~neerkLANDDEVkProjects\Eastlake III\CFD\EXH][BIT A - Imp for ROI v6.6-27-02.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ADOPTING A BOUNDARY MAP SHOWING THE BOUNDARIES OF THE TERRITORY PROPOSED FOR THE INCLUSION IN PROPOSED COMMUNITY FACILITIES DISTRICT NO. 0?M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) WHEREAS, the City Council of the City of Chula Vista, California, desires to initiate proceedings to create a Community Facilities District and to designate improvement areas therein pursuant to the terms and provisions of the "Mello-Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be designated as Community Facilities District No. 0?M (EastLake III - Woods, Vistas and Land Swap Parcel) ("District"); and, WHEREAS, there has been submitted a map showing the boundaries of the territory proposed to be included in the District and in each of the improvement areas proposed to be designated therein which territory includes the properties and parcels of land proposed to be subject to the levy of special taxes by the District for each such improvement area. NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all tree and correct. SECTION 2. The map designated as "Boundaries Of Community Facilities District No. 0?M (EastLake III - Woods, Vistas and Land Swap Parcel)" showing the showing the boundaries of the territory proposed to be included in the District and in each of the improvement areas proposed to be designated therein which territory includes the properties and parcels of land proposed to be subject to the levy of a special tax by the District for each such improvement area. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of the map of the District, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the hearing on the formation of such District, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Sections 3110 and 3111 of the Streets and Highways Code of the State of California. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippit John'-~aheny V Director of Public Works City Attorney RESOLUTION NO. RESOLUTION OF THE CITY cOuNcIL OF THE CITY OF CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) AND TO AUTHORIZE THE LEVY A SPECIAL TAX THEREIN TO FINANCE CERTAIN SERVICES WHEREAS, the CITY COuNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), desires to initiate proceedings to create a Community Facilities District and to designate two improvement areas therein pursuant to the terms and provisions of the "Mello- Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be referred to as Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel) (the "District") and the improvement areas shall hereinafter be referred to as Improvement Area No. 1 and Improvement Area No. 2 (each, an "Improvement Area" and collectively, an "Improvement Area"); and, WHEREAS, this City Council is now required to proceed to adopt its Resolution of Intention to initiate the proceedings for the establishment of such District, to set forth the boundaries for such District and the Improvement Areas therein, to indicate the type of public services to be financed by such District, to indicate a rate and method of apportionment of special taxes proposed to be levied within each Improvement Area sufficient to finance such services for and within each such Improvement Area, to set a time and place for a public hearing relating to the establishment of such District and the designation of the Improvement Areas. WHEREAS, a map of such District has been submitted showing the boundaries of the territory proposed to be included in the District and in each of the Improvement Areas which territory includes the properties and parcels of land proposed to be subject to the levy of a special tax by the District for each such improvement area NOW, THEREFORE, IT IS HEREBY RESOLVED: SECTION 1. Recitals. The above recitals are all tree and correct. SECTION 2. Initiation of Proceedings. These proceedings are initiated by this City Council pursuant to the provisions of the Community Facilities District Law. SECTION 3. Boundaries of District and The Improvement Areas. It is the intention of this City Council to establish the Community Facilities District and to designate the Improvement Areas therein pursuant to the provisions of the Community Facilities District Law, and to determine the boundaries and parcels on which special taxes may be levied to finance certain services. A description of the boundaries of the territory proposed for inclusion in the District and each Improvement Area therein including properties and parcels of land proposed to be subject to the levy of a special tax by the District is as follows: All that property as shown on a map as previously approved by this City Council, such map designated by the name of this Community Facilities District, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. SECTION 4. Name of District and Improvement Areas. The proposed Community Facilities District shall he known and designated as "Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel)." The Improvement Areas within the District shall be known and designated as "Improvement Area No. 1" and "Improvement Area No. 2." SECTION 5. Description of Services. It is the intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be provided is as follows: The maintenance of (a) wetlands and landscaped areas within the public rights-of- ways and other public easements throughout the District and (b) facilities that are directly related to storm water quality control throughout the District. Such maintenance shall include, but not be limited to, the provision of all labor, material, administration, personnel, equipment and utilities necessary to maintain such landscaped areas and such storm water quality control facilities. SECTION 6. Special Tax. It is hereby further proposed that, except where funds are otherwise available, a special tax sufficient to pay for such services and related incidental expenses authorized by the Community Facilities District Law, secured by recordation of a continuing lien against all non-exempt real property in each Improvement Area of the District, will be levied annually within the boundaries of each such Improvement Area. Under no circumstances will the special tax authorized to be levied within an Improvement Area be increased as a consequence of delinquency or default by the owner of any other parcel or parcels used for private residential purposes and located within such Improvement Area by more than 10 percent. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within Improvement Area No. 1, reference is made to the attached and incorporated Exhibit "A", which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within such Improvement Area to clearly estimate the maximum amount that such person will have to pay for such services. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within Improvement Area No. 2, reference is made to the attached and incorporated Exhibit "B", which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within such Improvement Area to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized, to the extent possible, shall be collected in the sa.me manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer. SECTION 7. Public Hearing. Notice is given that on the 13th day of August, 2002, at the hour of 7 o'clock p.m., in the regular meeting place of the City Council being the Council Chambers, located at 276 4th Avenue, Chula Vista, California, a public hearing will be held where this City Council will consider the establishment of the proposed District, the designation of the Improvement Areas therein, the proposed rate and method of apportionment of the special taxes proposed to be levied within each Improvement Area, and all other matters as set forth in this resolution of intention. At the above-mentioned time and place for public hearing any persons interested, including taxpayers and property owners may appear and be heard. The testimony of all interested persons for or against the establishment of the District, the extent of the District, or the furnishing of the services, will be heard and considered. Any protests may be made orally or in writing. However, any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the City Clerk of the City Council on or before the time fixed for the public hearing. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing. If a written majority protest against the establishment of the District is filed, the proceedings shall be abandoned. If such majority protest is limited to certain services or portions of the special tax, those services or that tax shall be eliminated by the City Council. SECTION 8. Election. If, following the public hearing described in the Section above, the City Council determines to establish the District and proposes to levy a special tax within each of the Improvement Areas within the District, the City Council shall then submit the levy of the special taxes to the qualified electors of each such Improvement Area. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within any Improvement Area for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of such Improvement Area, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of such Improvement Area who were the owners of record at the close of the subject hearing, with each landowners or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within such Improvement Area. A successful election relating to the special tax authorization shall, as applicable, establish and/or change the appropriations limit as authorized by Article XIIIB of the California Constitution as it is applicable to this District. SECTION 9. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by causing a Notice of Public Hearing to be published in the legally designated newspaper of general circulation, such publication pursuant to Section 6061 of the Government Code, with such publication to be completed at least seven (7) days prior to the date set for the public hearing. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippit John Kaheny Director of Public Works City Attomey Exhibit "A" CITY'OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 (Eastlake Woods and Vistas) A Special Tax of Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Landswap Parcel) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area No. 1 of the CFD and collected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Spedal Tax set forth below. ALI of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the mariner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condom, imm plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California~ "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer IA No. 1 of the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an offidal of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 07M of the City of Chula Vista. City of Chula Vista June 20, 2002 CFI) 0TM, IA No. 1 Page I "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single farrfily residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March I preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" or "IA No. 1" means Improvement Area No. 1 of the CFD, as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped areas within'the public right-of- ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Spedal Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. I for such Fiscal Year. "Maximum Special Tax" means the maximum Spedal Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more Cit~ of Chula ~sta June 20, 2002 CFD 07M, 1,4 No. 1 Page 2 residential units that share common walls, inducling, but not limited to, duplexes, triplexes, townhomes, condom'urns, and apartment units. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Operating Fund" means a fund that shall be maintained for IA No. 1 for each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Undeveloped Property not dassitied as Developed Property, Final Map Property, or Taxable Property Owners Association Property. "Property Owner Association Property" means any property within the boundaries IA No. 1 of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner assodation, including any master or sub-assodation. "Proportionatdy" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Spedal Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the boundaries of IA No. 1 of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for IA No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overrtms and delinquencies in the payment of Spedal Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Spedal Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 1 to fund the Special Tax Requirement. City of Chula Vista June 20, 2002 CFD 071}1, I~ No. 1 Page 3 "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 1 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; ('di) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably antidpated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Spedal Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property or Multi-Family Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 1. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. 1 for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 1 of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property includes: (i) Public Property, or (h) Property Owner Association Property, or (iii) Assessor's Parcels defined as Community Purpose Facility Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Property Owner Assodation Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within IA No. 1 of the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall b~ further assigned to a Land Use Class as specified in Table 1. Undeveloped PropertT shall be further assigned to a Land Use Class as specified in Table 2. Ci(~ of Chula ~sta June 20, 2002 CFD 0TM, L4 No. l Page 4 Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Devdoped Property Community Facilities District No. 0TM Improvement Area No. 1 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 1 Residential Property $0.076 per Sq Ft $0.031 per Sq Ft $0.108 per Sq Ft 2 Multi-Family Property $0.076 per Sq Ft $0.031 per Sq Ft $0.108 per Sq Ft 3 Non-Residential Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Spedal Tax that may be levied on such an Assessor's Parcd shall be the sum of the Maximum Special Tax levies that may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Class. 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 07M Improvement Area No. 1 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 4 Final Map Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acre 5 Other Taxable Property $991.98 per Acre $404.59 per Acre $1,396.57 per Acre 6 Taxable Property Owner $991.98 per Acre $404.59 per Acre $1,396.57 per Acre Assodation Property City of Chula Vista June 20, 2002 CFD 07M, IA No. I Page 5 /? 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each A ' ' ssessor s Parcel m IA No. 1 shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. 1 Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the ftrst two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property;, Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Prope~y at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. 1 of the CFD. E. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. City of Chula IXlsta CFD 07M, IA No. 1 June 20, 2002 Page 6 The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Assodation Property provided that no such classification would reduce the sum of all taxable Property to less than 346.59 Acres. Assessor's Pamels defined as Property Owner Association Property that cannot be classified as exempt property will be classified as Taxable Property Owner Assodation Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFI) Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Spedal Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may fde a written notice with the City Clerk of the City appealing the amount of the Spedal Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Spedal Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. IA No. 1 G. MANNER OF COLLECTION Spedal Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad 'adoron property taxes; provided, however, that the CFD Administrator may directly biLl the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of IA No. 1 of the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in IA No. 1 of the CFD shall remain subject to the Special Tax in perpetuity. J:\EngineerkLANDDEVkPmjeets\Easflake llI\CFD\dean Eastlalm Ill RMA IA No.1 &aft 9.doc City of Chula Vista June 20, 2002 CFD 07M, IA No. 1 Page 7 Exhibit "B" CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 2 (Landswap Parcel) A Special Tax of Commurfity Facih'ties District No. 07M (Eastlake III Woods, Vistas and Landswap Parcel) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area No. 2 of the CFD and collected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Tide 5 of the Government Code of the State of Cal~ornia. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer IA No. 2 of the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 07M of the City of Chula Vista. Cit~ of Chula Vista June 20, 2002 CFD 07M, IA No. 2 Page I "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or }tis or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building petrnit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building perm/ts may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 2" or "IA No. 2" means Improvement Area No. 2 of the CBT), as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped areas within the public right-of- ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. 2 for such Fiscal Year. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. CiO~ of Chula I~sta CFD 07M, IA No. 2 June 20, 2002 Page ~ "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apa~m~ent units. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Operating Fund" means a fund that shall be maintained for IA No. 2 for each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Undeveloped Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Assodation Property. "Property Owner Association Property" means any property within the boundaries IA No. 2 of the CFD that is owned by, or irrevocably dedicated as indicated in an instnmaent recorded with the County Recorder to, a property owner association, including any master or sub-assodation. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Spedal Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the boundaries of IA No. 2 of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for IA No. 2 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Spedal Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. City of Chula Vista June 20, 2002 CFD 07M, !~4 No, 2 Page3 I? pec~al Tax means the Special Tax lewed pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 2to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 2 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property or Multi-Family Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 2. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. 2 for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. 2 of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property includes: (i) Public Property, or (h) Property Owner Association Property, or (iii) Assessor's Parcels defined as Community Purpose Facility Property that is owned by a non-profit organization and has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, or (v) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Property Owner Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. Ci~ of Chula Vista June 20, 2002 CFD 07M, IA No. 2 Page 4 B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the defmitlons above, ail Taxable Property within IA No. 2 of the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Spedal Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Propertywhen such Assessor's Parcel is classified as Developed Property. If the Assessor's Parcel is Undeveloped it shall be classified as Other Taxable Property. C. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 0TM Improvement Area No. 2 Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 1 Residential Property $0.056 per Sq Ft$0.014 per Sq Ft $ 0.070 per Sq Ft 2 Multi-Family Property $0.056 per Sq Ft$0.014 per Sq Ft $0.070 per Sq Ft 3 Non-Residential Property $845.02 per Acre$209.93 per Acre $1,054.95 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Spedal Tax that may be levied on such an Assessor's Parcel shall be the sum of the Maximum Spedal Tax levies that may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator shall determine the allocation to each Land Use Class. City of Chula V'tsta June 20, 2002 CFD 07M, lA No. 2 Page $ I?--'-tg, 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 07M Improvement Area No. 2 Land Landscape Stoim Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance 4 Final Map Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre 5 Other Taxable Property $845.02 per Acre $209.93 per Acre $1,054.95 per Acre 6 Taxable Property Owner $845.02 per Acre $209.93 per Acre $1,054.95 per Acre Association Property 3. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in IA No. 2 shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage increase, if any, in the San Diego Metropolitan Area All Urban Consumer Price Index (AIl Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL T&¥ Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. 2 Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; CiO~ of Chula Fista June 20, 2002 CFD 07M, IA No. 2 Page 6 I?.-q? Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, 'the Special Tax shall b~ levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. 2 of the CFD. E. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, (ii) Assessor's Parcels defined as Community Purpose Facility Property that are owned by a non-profit organization which has provided proof to the City prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied of the organization's non-profit status, and (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Assodation Property provided that no such dassificatlon would reduce the sum of all taxable Property to less than 76.23 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be classified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Spedal Tax and believes that the amount of the Spedal Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the ClaD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Spedal Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a spedal three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as k deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations rehtive to the annual administration of the Spedal Tax and any landowner or resident appeals, as herein spedfled. The decision of the Review/Appeal Committee shall be final and binding as to all City of Chula Vista June 20, 200~ CFD 07M, IA No~ 2 Page 7 persons. IA No. 2 G. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary az/~ property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner ff necessary to meet the financial obligations of IA No. 2 of the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX Taxable Property in IA No. 2 of the CFI) shall remain subject to the Special Tax in perpetuity. C:\W1NDOWS\Temporary Internet Files\OLKA130\clean Easdake III RMA IA No.2 dim/t 9.doc CiO~ of Chula Vista June 20, 2002 CFD 07M, IA No. 2 Page 8 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ORDERING AND DIRECTING THE PREPARATION OF A COMMUNITY FACILITIES DISTRICT REPORT FOR PROPOSED COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has declared its intention to initiate proceedings to create a Community Facilities District and to designate two improvement areas therein pursuant to the terms mad provisions of the "Mello~Roos Community Facilities Act of 1982", being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be designated as Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel) (the "Districf'); and, WHEREAS, this City Council directs, pursuant to the provisions of Section 53321.5 of the Government Code of the State of California, the preparation of a Community Facilities District Report to provide more detailed information relating to the proposed District, the proposed improvement areas, the services proposed to be financed from the proceeds of special taxes to be levied within each improvement area, and estimate of the cost of providing such services. NOW, THEREFORE IT IS HEREBY RESOLVED: SECTION 1. The above recitals are all true and correct. SECTION 2. The Director of Public Works is hereby directed and ordered to prepare a Community Facilities District Report (the "Report") to be presented to this City Council, generally setting forth and containing the following: SERVICES: A full and complete description of the public services proposed to be financed from the levy of special taxes within each improvement area. COST ESTIMATE: A general cost estimate setting forth costs of providing such services. SPECIAL TAX: Further information regarding the implementation of the rate and method of apportionment of the special tax proposed to be levied within each improvement area. SECTION 3. The Report, upon its preparation, shall be submitted to this City Council for review, and the Report shall be made a part of the record of the public hearing on the Resolution of Intention to establish such District. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippit John Kaheny v Director of Public Works City Attomey