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HomeMy WebLinkAboutAgenda Packet 2002/08/13 CITY COUNCIL AGENDA August 13, 2002 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CflY OF CHULA VISi'A City Council City Manager Patty Davis David D. Rowlands, Jr. Stephen C. Padilla 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 August 13, 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 · OATHS OF OFFICE: JOHN CHAVEZ, RESOURCE CONSERVATION COMMISSION CATHERINE RADCLIFFE, TOWN CENTRE PROJECT AREA COMMITTEE · INTRODUCTION BY LOURDES SEVILLA, INTERNATIONAL FRIENDSHIP COMMISSION CHAIRPERSON, OF THE FOLLOWING EXCHANGE STUDENTS FROM ODAWARA, JAPAN: MASAHIRO MATSUMOTO, SAORI NAKAI, TAKAHIKO SUZUKI, SHIO TAMAKI CONSENT CALENDAR (Items 1 through 10) 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) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed afier Action ltems. Items pulled by the public will be the first items of business. 1. WRITTEN COMMUNICATIONS Letter of resignation from Thomas Brewer, member of the Cultural Arts Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post immediately in accordance with Maddy Act requirements. 2. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REPEALING THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND KAISER FOUNDATION HOSPITALS FOR 30.4 ACRES NORTH OF OTAY LAKES ROAD AND WEST OF EASTLAKE PARKWAY Adoption of the ordinance repeals the previously adopted development agreement between the City and Kaiser Foundation Hospital, executed on July 2, 1992. (Director of Planning and Building) Staff recommendation: Council place the ordinance on second reading for adoption. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CITY'S FORMAL BIDDING PROCESS AND APPROViNG A FOUR-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; HELIX ENVIRONMENTAL PLANNING, INC., CONSULTANT; AND OTAY PROJECT, LP AND MCMILLIN OTAY RANCH, LLC, APPLICANTS, FOR MITIGATION MONITORING SERVICES TO BE RENDERED FOR OLYMPIC PARKWAY BETWEEN BRANDYWINE AVENUE AND SR-125, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT Adoption of the resolution approves the proposed four-party agreement between the City, Helix Environmental Planning, Inc. (Consultant), McMillin Otay Ranch, LLC (Applicant), and Otay Project, LP (Applicant), for a total of $97,400 for mitigation monitoring services to be rendered to the segment of Olympic Parkway fi.om Brandywine Avenue to SR-125 for a period of five years. The mitigation monitoring services required consist primarily of post-construction monitoring of created biological habitat, which requires a minimum of five years of maintenance and monitoring to ensure successful wetland, upland, and aquatic habitat creation pursuant to the U.S. Army Corps of Engineers, California Department of Fish and Game, and California Regional Water Quality Control Board permits issued for the project. (Director of Planning and Building) Staffrecommendation: Council adopt the resolution. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PROPOSED EXTENSION OF THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA, THE SPRING VALLEY SANITATION DISTRICT AND THE CITY OF SAN DIEGO FOR TRANSPORTATION OF WASTEWATER IN THE SPRING VALLEY JOINT SYSTEM FOR AN ADDITIONAL TEN YEARS Approximately three million gallons per day of sewage discharged from the northern part of Chula Vista flow into the Spring Valley trunk line. This sewage is ultimately discharged into San Diego's metro interceptor, which conveys the flow to the treatment plant in Point Loma. Chula Vista has used this facility since 1964 under an agreement with the County and has paid for the use of this facility. On May 20, 1997, Council Resolution 18671 approved a new, six-year agreement with the District to provide for the maintenance and operation of this line with a provision that allowed the City to extend the terms of the agreement for an additional ten-year period. (Director of Public Works) Staff recommendation: Council adopt the resolution. 5. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $2,524,596 FROM THE AVAILABLE FUND BALANCE IN THE TRUNK SEWER CAPITAL RESERVE FUND AS A LOAN TO THE SALT CREEK GRAVITY BASIN DEVELOPMENT IMPACT FEE FUND, APPROPRIATING $10,182,824 FROM THE AVAILABLE FUND BALANCE IN THE TRUNK SEWER CAPITAL RESERVE FUND TO THE SALT CREEK GRAVITY SEWER PROJECT (SW219), AND APPROPRIATING $2,524,596 1N UNANTICIPATED LOAN PROCEEDS AND $850,000 FROM THE AVAILABLE FUND BALANCE 1N THE SALT CREEK GRAVITY BASIN DEVELOPMENT IMPACT FUND TO THE SALT CREEK GRAVITY SEWER PROJECT, SW219 (4/5THS VOTE REQUIRED) Page 2 - Council Agenda 08/13/02 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "PHASE III OF THE SALT CREEK GRAVITY SEWER INTERCEPTOR (CIP SW-219)" PROJECT TO CASS CONSTRUCTION, INC. IN THE AMOUNT OF $8,432,382.60 (4/5THS VOTE REQUIRED) On July 3, 2002, the Director of Public Works received sealed bids for phase III of the Salt Creek gravity sewer interceptor project (CIP No. SW-219). The work for this project primarily includes the installation of a 42-inch gravity sewer line and related work along Main Street, from immediately west of Interstate 805 to Heritage Road, then heading easterly and northerly along a dirt road that follows the low point of the Salt Creek Basin, and finally terminating at the end of the existing Salt Creek sewer line installed in 1996 as a joint project with SDG&E's Pipeline 2000 project. (Director of Public Works) Staff recommendation: Council adopt the resolution. 6. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP FOR CHULA VISTA TRACT NO. 90-07, BELLA SOL, SUNBOW II UNIT 12 (PLANNING AREA 11); ACCEPTING, ON BEHALF OF THE CITY OF CHULA VISTA, ASSIGNABLE AND IRREVOCABLE GENERAL UTILITY AND ACCESS EASEMENTS, PUBLIC SEWER EASEMENT AND SIGHT DISTANCE EASEMENT GRANTED ON SAID MAP WITHIN SAID SUBDIVISION; APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FINAL MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NO. 90-07, SUNBOW II, UNIT 12 (PLANNING AREA 11), REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF DESIGN REVIEW COMMITTEE CASE NO. 02- 21, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ADJUSTMENT IN BOUNDARY OF THE CITY OPEN SPACE LOT A AND AUTHORIZING THE MAYOR TO EXECUTE A QUITCLAIM DEED FOR THE CITY'S PROPERTY WITHIN LOT 1 D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENT AND AUTHORIZING THE MAYOR TO EXECUTE A GRANT OF EASEMENT FOR MAINTENANCE PURPOSES OVER CITY OPEN SPACE LOT A Adoption of the resolutions approves a Final Map for Bella Sol, Sunbow II Unit 12 (Planning Area 11) and associated agreements. The map contains one condominium lot and one open space lot. The condominium lot will contain a maximum of 108 units. (Director of Public Works) Staff recommendation: Council adopt the resolutions. Page 3 - CouncilAgenda 08/13/02 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE RETENTION AGREEMENT WITH PEGGY MCCARBERG, ESQ. FOR LEGAL SERVICES TO BE PERFORMED UNDER THE SUPERVISION OF THE CITY ATTORNEY FOR FISCAL YEAR 2002-2003 As in the previous eight years, the City needs to provide funding for a part-time contract attorney on a continuing basis to assist with the myriad land-use issues facing the City. The City has utilized the services of Ms. McCarberg on an hourly basis for this purpose. It is now necessary to authorize an amendment of the retention agreement for fiscal year 2002-2003. (City Attorney) Staff recommendation: Council adopt the resolution. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND LAUDERBACH ELEMENTARY SCHOOL REGARDING PROVISION OF LIBRARY/RESEARCH SKILLS INSTRUCTION TO 4TM THROUGH 6TM GRADE STUDENTS, ACCEPTiNG $5,350 FROM THE SCHOOL, APPROPRIATiNG THE UNANTICIPATED REVENUE, AMENDING THE FISCAL YEAR 2002-2003 LIBRARY BUDGET, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID MEMORANDUM OF UNDERSTANDING (4/STHS VOTE REQUIRED) For a second year, Lauderbach Elementary School has asked the library to provide library/research skills instruction to 4th through 6th graders during class visits, outside of what the Library normally provides schools during class visits. To conduct this specialized program at the south Chula Vista branch, the library would incur additional costs. The two staffs have reached an agreement on how this service could be provided at a cost of $5,350 to the school. The attached memorandum of understanding outlines the terms and conditions under which the program would be conducted this fiscal year. (Public Library Director) Staffrecommendation: Council adopt the resolution. 9. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 9.20 OF THE CHULA VISTA MUNICIPAL CODE TO iNCLUDE LANGUAGE RELATiNG TO REGULATION OF THE USE, POSSESSION AND SALE OF GLASS ETCHING PRODUCTS The City has been experiencing a new form of graffiti vandalism known as "acid etching," which involves the use of a corrosive substance of fluoride compounds, sulfuric acid and barium sulfate, and it causes permanent damage. Within the past several months, acid etching vandalism has caused thousands of dollars worth of damage to 16 Chula Vista businesses. The proposed ordinance adds glass etching products to the definition of covered and controlled graffiti implements. (Chief of Police) Staff recommendation: Council place the ordinance on first reading. Page 4 - Council Agenda 08/13/02 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CREATION OF A FUNDS DEVELOPMENT/STRATEGIC PLAN MANAGER CLASSIFICATION 1N THE UNCLASSIFIED SERVICE, SENIOR MANAGEMENT GROUP; AMENDiNG THE FISCAL YEAR 2003 BUDGET FOR THE LIBRARY TO APPROPRIATE $33,300 BASED ON $24,500 iN UNANTICiPATED REIMBURSEMENTS AND $8,800 FROM THE GENERAL FUND AVAILABLE FUND BALANCE; AND TRANSFERRING $59,785 FROM VARIOUS DEPARTMENT OPERATING BUDGETS (4/5THS VOTE REQUIRED) This new position would design and conduct ongoing philanthropic fund development programs for the City; conduct/facilitate strategic planning processes for the City, its departments and divisions; and assist in the development and prioritization of specific program and management goals and objectives. The position would be assigned to Library Administration but would be available to all City departments. (Deputy City Manager Palmer) Staff recommendation: Council adopt the resolution. ORAL COMMUNICATIONS Persons speala'ng 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 generally prohibits 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. PUBLIC HEARINGS The following items have been advertised as public hearings as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 11. CONSIDERATION OF PCM-02-24, AMENDMENTS TO THE EASTLAKE III SECTIONAL PLANNING AREA PLAN, OTAY RANCH VILLAGE SIX SECTIONAL PLANNING AREA PLAN, AND OTAY RANCH VILLAGE ELEVEN SECTIONAL PLANNING AREA PLAN TO INCORPORATE SECTION II.7 AIR QUALITY IMPROVEMENT PLAN INTO EACH OF THE SECTIONAL PLANNING AREA PLANS The developers of the three planning areas, in order to meet the SPA content requirements, agreed to participate in a pilot program to study and evaluate air quality and energy conservation measures in their projects. The City retained a consultant to prepare a computer model, related reports and analyses of air quality and energy conservation measures in order to evaluate the three SPA projects. (Director of Planning and Building) Staff recommendation: Council conduct the public hearing and adopt the following resolutions: Page 5 - CouncilAgenda 08/13/02 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE EASTLAKE IH SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION 11.7 AIR QUALITY IMPROVEMENT PLAN B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OTAY RANCH VILLAGE SIX SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION 11.7 AiR QUALITY IMPROVEMENT PLAN C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OTAY RANCH VILLAGE ELEVEN SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION II.7 AIR QUALITY IMPROVEMENT PLAN 12. CONSIDERATION OF PCC-02-50, A CONDITIONAL USE PERMIT TO INSTALL, OPERATE AND MAINTAIN AN UNMANNED WIRELESS COMMUNICATIONS FACILITY AT THE AULD GOFF GOLF COURSE, 525-549 HUNTE PARKWAY; APPLICANT: NEXTEL COMMUNICATIONS Nextel Communications has requested permission to construct and operate an unmanned cellular communications facility at 525-529 Hunte Parkway, the Auld Goff Golf Course. The project will consist of one 63-foot monopine, two 25-foot live pine trees, and an llY2-foot by 20-foot equipment shelter that would be 12 feet 3 inches high. The Environmental Review Coordinator has determined that the project is exempt per the California Environmental Quality Act, Section 15305, Class 5, minor conditional use permit that does not significantly intensity land use. (Director of Planning and Building) Staff recommendation: Council conduct the public hearing and adopt the following resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING APPROVAL OF CONDITIONAL USE PERMIT PCC-02-50 FOR AN UNMANNED CELLULAR COMMUNICATIONS FACILITY AT THE AULD GOLF COURSE, 525-529 HUNTE PARKWAY 13. CONSIDERATION OF THE ADOPTION OF AN ORDINANCE AND AN URGENCY ORDINANCE MODIFYING THE EXISTING TRANSPORTATION DEVELOPMENT IMPACT FEE AND AMENDING CHAPTER 3.54 OF THE MUNICIPAL CODE The City's transportation development impact fee (TDIF) program was established on January 12, 1988. Since its inception, the program has been updated several times to reflect new land use approvals, changes to the Circulation Element of the General Plan, and updated project cost estimates. Adoption of the resolution approves an increase from the current fee of $6,240 to $8,180 per equivalent dwelling trait. The proposed urgency ordinance enables the City to collect the fee during the 60-day waiting period before the regular ordinance becomes effective. (Director of Public Works - continued from the meeting of 08/06/02) Page 6 - Council Agenda 08/13/02 Staff recommendation: Council conduct the public hearing, adopt the following resolutions and urgency ordinance, and place the ordinance on first reading: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A REPORT PREPARED BY WILLDAN RECOMMENDING AN UPDATED TRANSPORTATION DEVELOPMENT IMPACT FEE TO MITIGATE TRANSPORTATION IMPACTS WITHIN THE CITY'S EASTERN TERRITORIES B. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 3.54, RELATING TO DEVELOPMENT IMPACT FEE TO PAY FOR THE TRANSPORTATION FACILITIES IN THE CITY'S EASTERN TERRITORIES C. URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 3.54, RELATING TO DEVELOPMENT IMPACT FEE TO PAY FOR THE TRANSPORTATION FACILITIES IN THE CITY'S EASTERN TERRITORIES D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2002/2003 BUDGET BY APPROPRIATING $826,480 FROM THE AVAILABLE FUND BALANCE IN THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO REPAY SEWER LOAN AUTHORIZED BY RESOLUTION NO. 16706 (4/5THS VOTE REQUIRED) 14. CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILL1N-OTAY RANCH-VILLAGE SIX) AND AUTHORIZATION TO LEVY SPECIAL TAXES AND TO INCUR A BONDED INDEBTEDNESS SECURED BY SUCH SPECIAL TAXES Community Facilities District No. 2001-2 would fund the construction of public facilities, such as roadways, for thc McMillin project. In addition, a portion of the proceeds may be authorized for use for certain transportation projects, as directed by the City. Adoption of the resolutions continues the formal proceedings leading to the establishment of Community Facilities District No. 2001-2 and the authorization, subject to the approval of the qualified electors, to levy special taxes and to issue bonds secured by the levy of such special taxes. (Director of Public Works) Staff recommendation: Council conduct the public hearing and adopt the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN-OTAY RANCH-VILLAGE SIX) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN SUCH COMMUNITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOF Page 7 - Cotmcil Agenda 08/13/02 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING NECESSITY TO INCUR BONDED INDEBTEDNESS FOR COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN-OTAY RANCH-VILLAGE SIX), SUBMITTING TO THE QUALIFIED ELECTORS OF SUCH COMMUNITY FACILITIES DISTRICT A PROPOSITION TO INCUR A BONDED INDEBTEDNESS SECURED BY THE LEVY OF A SPECIAL TAX WITHIN SUCH COMMUNITY FACILITIES DISTRICT TO FINANCE CERTAIN TYPES OF PUBLIC FACILITIES, AND GIVING NOTICE THEREON 15. CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III-WOODS, VISTAS AND LAND SWAP PARCEL) On July 9, 2002, the Council initiated the Community Facilities District (CFD) No. 07M proceedings by adopting Resolutions 2002-244 through 2002-246. Adoption of the proposed ordinance and resolutions concludes the formal proceedings to establish CFD No. 07M. 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. (Director of Public Works) Staff recommendation: Council conduct the public heating, place the following ordinance on first reading, and adopt the following resolutions: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III- WOODS, VISTAS AND LAND SWAP PARCEL) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING 1N ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III- WOODS, VISTAS AND LAND SWAP PARCEL), DECLARING THE RESULTS OF A SPECIAL ELECTION IN SUCH COMMUNITY FACILITIES DISTRICT C. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III- WOODS, VISTAS, AND LAND SWAP PARCEL), AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN EACH IMPROVEMENT AREA OF SUCH COMMUNITY FACILITIES DISTRICT Page 8 - Council Agenda 08/13/02 16. CONSDERATION OF THE ISSUANCE OF TAX-EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED MAIN PLAZA AFFORDABLE HOUSING PROJECT Avalon Communities LLC has proposed the development of a mixed-use project consisting of 106 affordable units and 15,000 square feet of retail commercial space to be known as "Main Plaza," located on the northeast comer of Main Street and Broadway, within the Southwest Redevelopment Project Area and the Montgomery Specific Plan Area. In March 2001, the City approved the issuance, sale and delivery of mulfifamily housing revenue bonds by the California Statewide Commtmities Development Authority, in the amount of 7 million dollars, for financing Main Plaza. Subsequently, in August 2001, the City/Agency approved financial assistance in an amount not to exceed $1,810,000. Since that time, development costs have risen, and the developer will require additional bond financing in an amount not to exceed 10 million dollars. Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWlDE COMMUNITIES DEVELOPMENT AUTHORITY ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussion and deliberation by the Council staff, or members of the public. The Council will consider the items individually, and staff recommendations may, in certain cases, be presented in the alternative. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 17. CONSIDERATION OF APPROVAL OF THE CITY OF CI-IULA VISTA PARKS AND RECREATION MASTER PLAN The Office of Building and Park Construction, under the direction of the Council, the Parks & Recreation Commission, and the Growth Management Oversight Commission (GMOC), was assigned to prepare a comprehensive master plan that would guide the City in the development of parks and recreation facilities in the community at large over the next twenty years. The Parks and Recreation Master Plan is intended to offer guidance to developers when designing parks and recreation facilities. It is also envisioned that City staff will conduct public workshops during the programming/design stage of each neighborhood or community park, resulting in modifications that may be suggested that would change the identified programming in the master plan for any given park. The Parks and Recreation Master Plan has been approved by both the Parks and Recreation Commission and the GMOC. (Director of Building and Park Construction) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PARKS AND RECREATION MASTER PLAN Page 9 - Council Agenda 08/13/02 ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 18. CITY MANAGER'S REPORTS · Scheduling of meetings. 19. MAYOR'S REPORTS · Consideration of adoption of the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUPPORTING CONGRESS' REQUEST THAT THE NINTH CIRCUIT REHEAR THE CASE OF NEWDOW K U.S. CONGRESS AND EXPRESSING DISAPPROVAL OF THE NINTH CIRCUIT DECISION IN NEWDOW V. U.S. CONGRESS 20. COUNCIL COMMENTS · Councilmember Davis: Ratification of appointment of Steve Castaneda to the Mobilehome Rent Review Commission CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on }Vednesday following the Council Meeting at the City Clerk's office in accordance with the Ralph M. Brown Act (Government Code 54957. 7). 21. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) ,, City of Chula Vista v. Douglas E. Bamhart, Inc., et. al. (SDSC GIS 003859) ADJOURNMENT to the Regular Meeting of August 20, 2002, at 6:00 p.m. in the Council Chambers. Page 10 - Council Agenda 08/13/02 RECEIVED JUL 2 G 2002 'OZ JUL26 P4:08 J COUNCIL OFFICES CHdLA V!STA, CA July 24, 2002 LERK S OFFIL;~ Mayor Shirley Horton City Hall 276 Fourth Avenue, Chula Vista CA 91910 Fax: (619) 476-5379 RE: Cultural Arts Commission Dear Honorable Mayor Horton: It has been my pleasure and honor to hold a seat on the City of Chula Vista's Cultural Arts Commission. I have the deepest respect and admiration for the City's work to preserve and enhance the City of Chula Vista's arts and culture. Unfortunately, I have had an opportunity offered that I cannot forgo and will be leaving the City of Chula Vista. Therefore, at this time, I am submitting my resignation from the Cultural Arts Commission effective August 1, 2002. It has been a pleasure to work with you, City Council members, the staff at the Office of Cultural Arts, as well as the Cultural Arts Commissioners. Chula Vista will always hold a special place in my heart. Sincerely, E. Thomas Brewer, MSW, MPH Cc: Ric Todd, Office of Cultural Arts Cultural Arts Commission ORDINANCE NO. ~ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY ~~ A VISTA REPEALING THE DEVELOPMENT AGREEMENT B§.~~;~~ CITY OF CHULA VISTA AND KAISER FOUNDA nON HO~);LS FOR 30.4 ACRES NORTH OF OTAY LAKES ROAD AND WES~EASTLAKE PARKWAY. óJ RECIT ALS ~Jè 1. A. Project Site WHEREAS, the areas of land which is the subject of this Ordinance is diagrammatically represented in Exhibit A and incorporated herein; and for the purpose of General Description herein consist of: 30.4 acres located north of Otay Lakes Road between the future SR-125 fteeway alignment and EastLake Parkway ("Project Site"); and, B. Project; Application for Discretionary Approval WHEREAS, on July 11,2002, The EastLake Company, LLC ("Developer") filed an application requesting that said development agreement be repealed ("Project"); and, C. Prior Discretionary Approvals WHEREAS, the Development Agreement between the City of Chula Vista and the Kaiser Foundation Hospitals was previously approved by City ofChula Vista Council Ordinance 2522 on July 6, 1992, and recorded in the San Diego County Recorders Office as Document 1992-0528395; and, D. Repeal of Development Agreement WHEREAS, the Kaiser Foundation decided not to construct the hospital complex and sold the property to the EastLake Company, which will not construct a hospital complex on the Site. Thus, the Development Agreement has become obsolete; and, E. Planning Commission Record on Applications WHEREAS, the Planning Commission held an advertised public hearing on said project on July 31, 2002, and voted 5-0-0-2 to recommend that the City Council repeal the Development Agreement between the Kaiser Foundation Hospitals and the City ofChula Vista; and, 1 ;;<-1 The proceedings and all evidence introduced before the Planning Commission at their public hearing on this Project held on July 31, 2002, and the minutes and resolutions resulting there ftom, are hereby incorporated into the record of this proceeding. F. City Council Record on Applications WHEREAS, a duly called and noticed public hearing was held before the City Council ofthe City ofChula Vista on August 6, 2002 on the Discretionary Approval Application, and to receive the recommendations ofthe Planning Commission, and to hear public testimony with regard to same; and, II NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City Chula Vista does hereby find, determine and ordain as follows: A. REPEAL OF DEVELOPMENT AGREEMENT The City Council of the City of Chula Vista hereby repeals the document entitled "Development Agreement by and between Kaiser Foundation Hospitals and the City ofChula Vista." III. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Ordinance is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that anyone or more terms, provisions or conditions are determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable, this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. IV. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day ftom and after its adoption. V. RECORDATION OF DOCUMENT The City Clerk is hereby directed to record this Ordinance repealing the development agreement in the office of the County Recorder. Presented by: Approved as to form by: ~ J~ City Attomey Robert A. Leiter Director of Planning J:\Attomey/ordinance/Kaiser Agreement repeal 2~;}/ COUNCIL AGENDA STATEMENT Item: _~ Meeting Date: August 13. 2002 ITEM TITLE: Resolution of the City of Chula Vista Council waiving the City's formal bidding process and approving a four-party agreement between the City of Chula Vista; Helix Enviromnentai Planning, Inc., Consultant; and Otay Project, LP and McMillin Otay Ranch, LLC, Applicants, for mitigation monitoring services to be rendered for Olympic Parkway between Brandywine Avenue and SR-125 and authorizing the Mayor to execute said Agreement. SUBMITTED BY: Director of Planning and Building/~Z REVIEWED BY: City Manager {4/Sths Vote: Yes No X ) In compliance with State Law, a mitigation monitoring and reporting program was adopted by the City for the Olympic Parkway Extension project. State Law requires public agencies to adopt such programs to ensure effective implementation of required mitigation measures. This report requests that the City Council approve the proposed four-party agreement between the City, Helix Environmental Planning, Inc. (Consultant), McMillin Otay Ranch, LLC (Applicant), and Otay Project, LP (Applicant) for a total of $97,400 for mitigation monitoring services to be rendered for the segment of Olympic Parkway from Brandywine Avenue to SR-125 for a period of five years. The mitigation monitoring services required consist primarily of post-construction monitoring of created biological habitat, which requires a minimum of five years of maintenance and monitoring to ensure successful wetland, upland, and aquatic habitat creation pursuant to the U.S. Army Corps of Engineers, Cahfornia Department of Fish and Game, and Califomia Regional Water Quality Control Board permits issued for the project; hence, the base five-year term of the proposed agreement. RECOMMENDATION: That the City Council adopt Resolution waiving the City's formal bidding process and approving a four-party agreement between the City of Chula Vista; Helix Environmental Planning, Inc., Otay Project, LP, and McMillin Otay Ranch, LLC, for mitigation monitoring services to be rendered for Olympic Parkway between Brandywine Avenue and SR-125 and authorizing the Mayor to execute said agreement. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Background On April 13, 1999, the City Council certified Mitigated Negative Declaration (MND) No. IS-99-20 for the Olympic Parkway Extension. In accordance with CEQA, MND No. IS-99-20 includes a 3-/ Page 2, Item No.: ,-~ Meeting Date: August 13~ 2002 Mitigation Monitoring and Reporting Program (MMRP). At this time, City staff resources arc insufficient to perform all monitoring tasks; therefore, staff recommends that a consultant be returned to assist in the final implementation of the MMRP. City staff in the Environmental Planning Section will supervise the mitigation monitoring tasks in the adopted MMRP for Olympic Parkway between Brandywine Avenue and SR-125. This consultant would function as the Environmental Monitor Specialist (Biologist) for the City of Chula Vista. The Environmental Monitor Specialist (Biologist) will conduct mitigation monitoring and reporting activities associated with created native wetland and upland habitat, with the primary tasks consisting of post-construction monitoring and reporting activities. Consultant Services Selection Process It is staff's recommendation that the City Council waive the City's formal bidding process on the grounds that the City is in immediate need of an experienced Environmental Monitor Specialist (Biologist) that is familiar with the policies and procedures of the City, the State of California and federal resource agencies, and with the California Environmental Quality Act. Under the City's permits with the U.S. Army Corps of Engineers, California Department of Fish and Game, and California Regional Water Quality Control Board for the project, the City is obligated to conduct a minimum of five years of maintenance and monitoring to ensure successful wetland, upland, and aquatic habitat creation following the City's acceptance of plant installation. The City's acceptance of plant installation for the project is anticipated to be granted shortly, at which time a biologist will be needed to commence the five-year maintenance and monitoring program. In order to expedite processing the requested contract, staff initiated an informal consultant selection process and solicited proposals from three environmental consultants. The not-to- exceed project costs of the three proposals ranged from $94,182 to $100,597. Subsequent to the submission of the proposals and the selection of Helix Environmental Planning, Inc. by the Environmental Review Coordinator, the scope of work was defined in greater detail and an agreement was negotiated. For the reasons stated below, City staff recommends Helix Environmental Planning, Inc. for this project at a not-to-exceed cost of $97,400. The Environmental Review Coordinator and the project applicant have determined that Helix Environmental Planning has demonstrated a unique and comprehensive familiarity with the project area and the MMRP, which is necessary for timely and adequate mitigation monitoring and reporting. Helix Environmental Planning's proposal was more comprehensive and detailed with respect to the scope of work and cost breakdown than the other proposals and included a greater number of field visits and monitoring reports than the other proposal which contained this level of specificity at a very similar cost. Additionally, Helix Environmental Planning has demonstrated unique qualifications to serve as the Consultant for this contract because of their experience and expertise with projects of a similar nature, their experience with the State of California and federal resource agencies, their grasp of the project's complexities, and their project experience within the City of Chula Vista and the region. Page 3, Item No.: 3 Meeting Date: Anl!nst 13. 2002 The Consultant represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City within the necessary timefuunes. The Environmental Review Coordinator has negotiated the details of these agreements in accordance with procedures set forth in the City's Environmental Review Procedures. Scope-of-Work Helix Environmental Planning will function as the Environmental Monitor Specialist (Biologist) for the City of Chula Vista under the supervision of the City's Environmental Review Coordinator. The responsibilities of the Environmental Monitor Specialist (Biologist) will consist of conducting monitoring and reporting activities associated with created riparian habitat within the manmade Poggi Canyon drainage channel, which runs along Olympic Parkway rrom approximately Brandywine Avenue to planned State Route 125, as well as created upland habitat within the channel buffer area, located predominantly within the master planned community commonly known as Otay Ranch SPA One and SPA One West. Contract Payment The not-to-exceed amount for this four-party agreement is $97,400 for five years of mitigation monitoring services. The project applicants will also reimburse any City staff time associated with implementation ofthe MMRP through a separate deposit account. ENVIRONMENTAL IMPACT: The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. FISCAL IMP ACT: There would be no impact to the General Fund. The project applicants for the segment of Olympic Parkway between Brandywine Avenue and SR-125, McMillin Otay Ranch, LLC and Otay Project, LP, through a deposit account, will pay Helix Environmental Planning's consulting fees. Attachments 1. F our-party agreement 3-3 RESOLUTION NO. 2002- RESOLUTION OF THE CITY OF CHULA VISTA COUNCIL WAIVING THE CITY'S FORMAL BIDDING PROCESS AND APPROVING A FOUR- PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; HELIX ENVIRONMENTAL PLANNING, INC., CONSULTANT; AND OTAY PROJECT, LP AND MCMILLIN OTAY RANCH, LLC, APPLICANTS, FOR MITIGATION MONITORING SERVICES TO BE RENDERED FOR OLYMPIC PARKWAY BETWEEN BRANDYWINE AVENUE AND SR-125 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, on April 13, 1999, the City Council of the City of Chula Vista certified Mitigated Negative Declaration No. IS-99-20 and adopted the accompanying Mitigation Monitoring and Reporting Program (MMRP) for the Olympic Parkway Extension; and WHEREAS, on April 20, 1999, the City Council approved the "Agreement for Financing and Construction of Olympic Parkway and Related Roadway Improvements" (Agreement) by and among the City of Chula Vista, McMillin Otay Ranch, LLC, and Otay Project, LP for the segment of Olympic Parkway within the master planned community commonly known as Otay Ranch SPA One and SPA One West; and WHEREAS, the implementation of the MMRP and Agreement necessitates the expertise of an Environmental Monitor Specialist (Biologist) and requires the hiring of a Consultant; and WHEREAS, it was determined by the Director of Planning and Building that staff has neither the available time nor the expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds necessary for the mitigation monitoring services; and WHEREAS, the City solicited request for proposals from three qualified consulting firms, and three proposals were received by the City that were responsive to the request; and WHEREAS, waiving the City's formal bidding process for this professional service contract, is in the City's best interest because the City is in immediate need of an experienced Environmental Monitor Specialist (Biologist) that is familiar with the policies and procedures of the City, the State of California and federal resource agencies, and with the California Environmental Quality Act to ensure successful wetland, upland, and aquatic habitat creation following the City's acceptance of plant installation, which is anticipated to be granted shortly, at which time a biologist will be needed to commence the five-year maintenance and monitoring program pursuant to the City's obligations under permits issued by the U.S. Army Corps of Engineers, California Department of Fish and Game, and California Regional Water Quality Control Board for the project; and 3-Lj- WHEREAS, the Consultant is uniquely qualified to serve as the Environmental Monitor Specialist (Biologist) for this project based on their work on projects of a similar nature, their experience with the resource agencies, their grasp of the project's complexities, and the firm's project experience within the City of Chula Vista and the region; and WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in the Environmental Review Procedures. WHEREAS, the proposed contract with Helix Environmental Planning, Inc. to provide mitigation monitoring services would be in an amount not to exceed $97,400. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the City's formal bidding process and does hereby approve the four- party agreement between the City of Chula Vista; Helix Environmental Planning, Inc., Otay Project, LP, and McMillin Otay Ranch, LLC to conduct mitigation monitoring services for Olympic Parkway between Brandywine Avenue and SR-125. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by .'? ~~~~ City Attorney Robert A. Leiter Director of Planning and Building J :/attorney/reso/helix 3-5 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL & JìYl(~ ~hn M. Kaheny City Attorney Dated: 8 _7 -02 FOUR-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, HELIX ENVIRONMENTAL PLANNING, INC., OTAY PROJECT, LP AND McMILLIN OTAY RANCH, LLC FOR MITIGATION MONITORING SERVICES TO BE RENDERED FOR OLYMPIC PARKWAY BETWEEN BRANDYWINE AVENUE AND STATE ROUTE 125 3-~ Four Party Agreement Between City of Chula Vista, Helix Environmental Planning, Inc., Consultant, and McMillin Otay Ranch, LLC and Otay Project, LP, Applicants, For Consulting Work to be Rendered with regard to Applicant's Project 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", Helix Environmental Planning, Inc., whose business form and address is indicated on the attached Exhibit A, and the persons designated on the attached Exhibit A to be collectively referred to herein as "Applicant", McMillin Otay Ranch, LLC, a Delaware limited liability company, and Otay Project, LP, a California limited partnership, 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 with the Project described on Exhibit A, Paragraph 2, 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. resources requested City does not presently have the "inhouse" staff or to process the application within the time frame for review by the Applicant. 08/06/2002 Four Party Agreement Page 1 3-7 2.5. 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. 2.6. Additional facts and circumstances regarding the background for this agreement are set forth on Exhibit B; 3 . Aqreement . 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 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 08/06/2002 Four Party Agreement Page 2 3 -1J 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 Applicant'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. 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 08/06/2002 Four Party Agreement Page 3 3-1 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 i~ 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. 08/06/2002 Four Party Agreement Page 4 3-10 3.3.2. Withholdinq of Processinq. 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 categor- ies, 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 Coveraqe. 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 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 08/06/2002 Four Party Agreement Page 5 3-1/ 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 Applicant, 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, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 5.3. Communication to Consultant. Applicant shall not communicate directly to the Consultant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the 08/06/2002 Four Party Agreement Page 6 3~Z express consent of City. The Applicant may request such meetings as they desire with the Consultant to ensure the adequacy of services performed by Consultant. 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 Desiqnated 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 Conflictinq 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 the term of this Agreement which would constitute a conflict of 08/06/2002 Four Party Agreement Page 7 3-/3 interest as prohibited by the Fair Political Practices Act. 7.5. Duty to Advise ofConflictinq 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 Aqainst 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. 08/06/2002 Four Party Agreement Page 8 3-1'+ 9. City's Riqht to Terminate Payment 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. 08/06/2002 Four Party Agreement Page 9 3-/5 11. Hold Harmless and Indemnification. 11.1. Consultant to Indemnify City and Applicant re Iniuries. 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 demanded by Consultant for the performance of services required by this Agreement. 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 08/06/2002 Four Party Agreement Page 10 3-lb 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 Aqreement. 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. Governinq 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. OS/06/2002 Four Party Agreement Page 11 3-/7 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. 13.10. Headinqs. 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. 08/06/2002 Four Party Agreement Page 12 3~ 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 three party agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. (End of Page. Next Page is Signature Page.) Four Party Agreement OS/06/2002 Page 13 3~~ Signature Page (1 of 3) Four-Party Agreement Between The City Of Chula Vista; Helix Environmental Planning, Inc., Consultant; and Otay Project, LP and McMillin Otay Ranch, LLC, Applicants, For Mitigation Monitoring Services to be Rendered for Olympic Parkway Between Brandywine Avenue and SR-125 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. Dated: City of Chula Vista by: Mayor Attest: Susan Bigelow City Clerk Approved as to form: John M. Kaheny City Attorney Consultant: Helix Environmental Planning, Inc. ---r=- ~ by: '-',-- Title: . VLclL f',usIÜ€Ylt Dated: 7 (7..1 (0'2- 07/25/2002 Four Party Agreement Page 14 3-20 Signature Page (2 of 3) Four-Party Agreement Between The City Of Chula Vista; Helix Environmental Planning, Inc., Consultant; and Otay Project, LP and McMillin Otay Ranch, LLC, Applicants, For Mitigation Monitoring Services to be Rendered for Olympic Parkway Between Brandywine Avenue and SR-125 Dated: e/./o~ Applicant: McMILLIN OTAY RANCH, LLC, a Delaware limited liability company By: McMILLIN COMPANIES, LLC, a Delaware limited liability company by: ·P. by: 07/25/2002 Four Party Agreement Page 15 3-21 Signature Page (3 of 3) Four-Party Agreement Between The City Of Chula Vista; Helix Environmental Planning, Inc., Consultant; and Otay Project, LP and McMillin Otay Ranch, LLC, Applicants, For Mitigation Monitoring Services to be Rendered for Olympic Parkway Between Brandywine Avenue and SR-125 Dated: 1/2.7/02. Applicant: OTAY PROJECT, LP, a California limited partnership By: OTAY RANCH DEVELOPMENT, LLC, a California limited liab'lity company by: V·f1 by: 07/25/2002 Four Party Agreement Page 16 3-22 Exhibit A Effective Date of Agreement: August 13, 2002 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 ofChula Vista, a ( ) Other: form] , a [insert business ("City") Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Consultant: Helix Environmental Planning, Inc. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 8100 La Mesa Boulevard, Suite 150, La Mesa, California 91941 Applicant: McMillin Otay Ranch, LLC, a Delaware limited liability company Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 2727 Hoover Avenue, National City, CA 91950 A-I 3-23 Applicant: Otay Project, LP, a California limited partnership Business Form of Applicant: ( ) Sole Proprietorship (X) Partnership ( ) Corporation Address: 350 West Ash Street, Suite 730, San Diego, CA 92101 1. Property (Commonly known address or General Description): The property consists of the manmade Poggi Canyon drainage channel, which runs along Olympic Parkway rrom approximately the eastern boundary of the Sunbow development (Brandywine Avenue) to planned State Route 125, as well as the upland channel buffer area, located within the master planned community commonly known as Otay Ranch SPA One and SPA One West. Prior to acceptance of the successfully created biological habitats by the City of Chula Vista and the permitting agencies, Otay Project, LP is responsible for the maintenance of the channel segments between Olympic Parkway Station Points 44+00 and 184+25 and between Olympic Parkway Station Points 211 +80 and 245+00, as depicted on the "Landscape Improvement Plans For Poggi Canyon Drainage," Work Order No. ORI57G, Drawing Nos. 00-23-01 through -37, approved by City of Chula Vista on 5/18/00. Prior to acceptance of the successfully created biological habitats by the City of Chula Vista and the permitting agencies, McMillin Otay Ranch, LLC is responsible for the maintenance of the channel segment between Olympic Parkway Station Points 184+25 and 211+80, as depicted on the "Irrigation and Planting Plans For Wetland Mitigation, Olympic Parkway Channel," Work Order No. 0R224G, Drawing Nos. 00-073-01 through -14, approved by City ofChula Vista on 5/18/00. 2. Project Description ("Project"): The Project consists of monitoring and reporting activities associated with created riparian habitat within the Poggi Canyon drainage channel and created upland habitat within the channel buffer area. 3. Entitlements applied for: N/A A-2 '2 - 2!-/-- 4. General Nature of Consulting Services ("Services--General"): Environmental Monitor Specialist (Biologist) to conduct monitoring and reporting activities associated with created riparian and upland habitat all to the satisfaction of the City's Environmental Review Coordinator. 5. Detailed Scope of Work ("Detailed Services"): The Consultant will function as the Environmental Monitor Specialist (Biologist) for the City of Chula Vista for the created riparian habitat within the Poggi Canyon drainage channel and upland habitat within the channel buffer area. The Consultant will provide biological technical support to City staff to conduct monitoring and reporting activities. Specific responsibilities of the Consultant with reference to the Poggi Canyon drainage channel project shall consist of the following tasks: a. At the direction of City staff, coordinate with the previous project biologist, Applicant's landscape maintenance contractor and City staff; b. When directed by City staff (prior to commencement of the five-year maintenance monitoring period), conduct an initial walk-through of the site with City staff, Applicant's landscape maintenance contractor, and the previous biologist (if available) to define site boundaries and allow identification of any problem areas that may have developed during the establishment period, the results of which shall be documented by Consultant in a letter report (Deliverable No.1); c. When directed by City staff, conduct a monitoring event at the beginning of the five-year maintenance monitoring period to establish qualitative baseline data for the riparian habitat that will be used for comparison during the following years, the results of which shall be documented by Consultant in a report (Deliverable No.2); d. When directed by City staff, as set forth in a written notice to proceed, commence maintenance monitoring (to be performed in accordance with Table 1 below, Habitat Maintenance Monitoring Schedule) of both the riparian habitat within the channel and the upland habitat within the channel buffer area (monitored visually rrom within the riparian habitat) for five years (unless terminated early by City staff in the event that the success criteria are met prior to the completion of five years of maintenance monitòring), consisting of a visual assessment of the restoration areas and identification of problems (i.e., weeds, trash removal, erosion control, irrigation problems, plant failure, and the like) and assessment of the need for corrective measures, including irrigation repairs and plant replacement; e. Document each maintenance monitoring event in a memo to City staff summarizing the site conditions (Deliverable Nos. 3.1 to 3.29); A-3 3-26 f. When directed by City staff, as set forth in a written notice to proceed, commence technical monitoring twice during Year 1 (six months apart) and annually during Years 2 through 5, consisting of both qualitative and quantitative assessments of the riparian habitat and qualitative assessment only of the upland habitat. Technical monitoring of the riparian habitat will consist of quantitative monitoring through thirteen (13) 50-meter line and belt transects (11 subject and 2 control), with collection methods following the California Native Plant Society protocol for data collection; g. Compare collected data to the control transects and determine progress through comparison of data according to the success criteria presented in the Conceptual Wetland Mitigation Plan for the Olympic Parkway Extension (Merkel & Associates, February 1, 1999) and the California Department ofFish and Game 1600 Agreement; h. Prepare a report following each technical assessment and submit to City staff for review and comment prior to submittal to the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, U.S. Environmental Protection Agency, California Department ofFish and Game, and the Regional Water Quality Control Board (Deliverable Nos. 4.1 to 4.6); 1. When directed by City staff, confirm the proposed aquatic habitat success monitoring approach (as described below under task 'T') with the Regional Water Quality Control Board prior to commencement of monitoring and, if additional monitoring is required, modify the approach, scope and cost, as appropriate; and J. When directed by City staff, as set forth in a written notice to proceed, commence aquatic habitat success monitoring pursuant to the Section 40 I Water Quality Certification for the project by following the California Stream Bioassessment Procedures (March 1999) or similar protocol for a total of five years, proposed to consist of sampling remaining ephemeral pools in the channel following storm events in a total of four different areas as well as taking four samples rrom a like drainage in the project vicinity (a total of eight samples per year), sending each of the samples to a laboratory for faunal assessments, and comparing the samples rrom the channel to the control samples. Document the results of annual aquatic habitat success monitoring in each of the annual technical assessment reports (Deliverable Nos. 4.2 to 4.6). Table 1 Habitat Maintenance Monitorinl! Schedule Year(s) Specific Period Frequency # Of Visits I -- Monthly 12 2 February - July Monthlv 8 August - January Every Other Month 3 Februarv - July Every Other Month 5 August - January Quarterly 4 and 5 -- Quarter! y 4 ner year A-4 3-Zb 6. 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 Deliver abies: Deliverable No.1: Letter report (business letter format, including applicable photographs) documenting the results of the initial walk-through of the site, submitted to City staff within 30 calendar days of the walk-through. This letter report shall include separate sections describing the Otay Project, LP and McMillin Otay Ranch, LLC maintenance responsibility areas, as described in Section 1 of this exhibit. Deliverable No.2: Report (bound with cover and table of contents, including applicable photographs) documenting the monitoring event at the beginning of the five-year maintenance monitoring period to establish qualitative baseline data for the riparian habitat, submitted to City staff within 30 calendar days of the initial monitoring event to be conducted when directed by City staff. Deliverable Nos. 3.1 to 3.29: Twenty-nine (29) memos (memoranda of varying lengths, as necessary to document conditions and issues, including photographs where warranted) to City staff documenting each maintenance monitoring event and summarizing the site conditions, submitted to City staff within 30 calendar days of each maintenance monitoring event. As directed by City staff, the actual number of required maintenance monitoring memos may vary if the maintenance monitoring period is shortened or lengthened. These memos shall include separate sections describing the Otay Project, LP and McMillin Otay Ranch, LLC maintenance responsibility areas, as described in Section 1 of this exhibit. Deliverable Nos. 4.1 to 4.6: Six (6) reports (bound with cover and table of contents, including applicable photographs) documenting both qualitative and quantitative assessments of the riparian habitat and qualitative assessment only of the upland habitat following each technical assessment, submitted to City staff for review (within 30 calendar days of the completion of data collection) prior to submittal to the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, U.S. Environmental Protection Agency, California Department of Fish and Game, and the Regional Water Quality Control Board. In addition, document the results of annual aquatic habitat success monitoring in each of the annual technical assessment reports (Deliverable Nos. 4.2 to 4.6). As directed by City staff, the actual number of required technical monitoring reports may vary if the maintenance monitoring period is shortened or lengthened. A-5 3-2.7 Dates for Completion of all Consultant Services: The term of this agreement shall be for five years rrom the date of the initial monitoring event to establish qualitative baseline data for the riparian habitat, to be conducted when directed by City staff. This contract may be extended at the sole discretion of the City Council for a one year period, for up to five additional years. 7. Documents to be provided by Applicant to Consultant: ( ) site plans ( ) grading plans ( ) architectural elevations ( ) project description. (X) other: Improvement Plans, Landscape and Irrigation Plans, Conceptual Wetland Mitigation Plan, and applicable state and federal permits. 8. Contract Administrators. City: Marilyn R.F. Ponseggi, Environmental Review Coordinator Applicant: Frank Zaidle, Vice President, McMillin Otay Ranch, LLC Kent Aden, Vice President, Otay Project, LP Consultant: Tom Hufrrnan, Vice President, Helix Environmental Planning, Inc. 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) ( ) ( ) ( ) ( ) ( ) ( ) Not Applicable. Not an FPPC Filer. Category No. L 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 to provide services, supplies, materials, machinery or equipment. 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, mat~als, machinery or equipment. A-6 3-28 ( ) Category No. 7. Business positions. 10. 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). ( ) Errors and Omissions insurance: $250,000 (not included in CQmmercial General Liability coverage A-7 3-21 Exhibit B Additional Recitals WHEREAS, on April 13, 1999, the City Council of the City ofChula Vista certified Mitigated Negative Declaration No. IS-99-20 and adopted the accompanying Mitigation Monitoring and Reporting Program (MMRP) for the Olympic Parkway Extension; and WHEREAS, on April 20, 1999, the City Council approved the "Agreement for Financing and Construction of Olympic Parkway and Related Roadway Improvements" (Agreement) by and among the City of Chula Vista, McMillin Otay Ranch, LLC, and Otay Project, LP for the segment of Olympic Parkway within the master planned community commonly known as Otay Ranch SPA One and SPA One West; and WHEREAS, the implementation of the MMRP and Agreement necessitates the expertise of an Environmental Monitor Specialist (Biologist) and requires the hiring of a Consultant; and WHEREAS, it was determined by the Director of Planning and Building that staff has neither the available time nor the expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds necessary for the mitigation monitoring services; and WHEREAS, the City solicited request for proposals rrom three qualified consulting firms in accordance with the City's informal bidding process, and three proposals were received by the City that were responsive to the request; and WHEREAS, waiving the City's formal bidding process for this professional service contract, is in the City's best interest because the City is in immediate need of an experienced Environmental Monitor Specialist (Biologist) that is familiar with the policies and procedures of the City, the State of California and federal resource agencies, and with the California Environmental Quality Act to ensure successful wetland, upland, and aquatic habitat creation following the City's acceptance of plant installation, which is anticipated to be granted shortly, at which time a biologist will be needed to commence the five-year maintenance and monitoring program pursuant to the City's obligations under permits issued by the U.S. Army Corps of Engineers, California Department of Fish and Game, and California Regional Water Quality Control Board for the project; and WHEREAS, the Consultant is uniquely qualified to serve as the Environmental Monitor Specialist (Biologist) for this project based on their work on projects of a similar nature, their experience with the resource agencies, their grasp of the project's complexities, and the firm's project experience within the City ofChula Vista and the region; and B-1 3-3D WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in the Environmental Review Procedures. WHEREAS, the proposed contract with Helix Environmental Planning, Inc. to provide mitigation monitoring services would be in an amount not to exceed $97,400. B-2 3-3/ 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. 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. C-l 8 ~3 2.. Phase Fee for Said Phase 1. $ 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: (X) 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 $97,400 including all Materials and other "reimburseables" ("Maximum Compensation"). ( ) 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 rrom providing additional Services at Consultant's own cost and expense. C-2 3-33 Categorv of Emplovee Principal Group Manager Senior Scientist Senior Project Manager Senior Biologist Senior Landscape Architect Environmental Specialist II Project Manager Biologist III Environmental Specialist I Biologist II Administrative Manager Technical Coordinator Graphics Coordinator Senior Environmental Planner Production Manager Habitat Construction Supervisor Biologist I Project Landscape Architect GIS Analyst Technical Editor Permit Specialist Assistant Production Manager Associate Biologist Environmental Planner Environmental Analyst Assistant Biologist Word Processor Construction Foreman Biological Technician Clerical Landscape Technician Rate Schedule Name Tom HufITnan Larry Sward Hourly Rate $145.00 125.00 $120.00 $110.00 $110.00 $105.00 $100.00 $85.00 $80.00 $75.00 $75.00 $75.00 $75.00 $75.00 $70.00 $70.00 $65.00 $65.00 $65.00 $60.00 $60.00 $60.00 $55.00 $55.00 $55.00 $45.00 $45.00 $45.00 $45.00 $35.00 $35.00 $25.00 Beginning in October 2003, hourly rates shall increase by 3% annually in October. Materials Separately Paid For by Applicant (X) Materials Reports Copies (X) Travel C-3 3-3tt Cost or Rate Actual Actual (X) Printing (X) Postage (X) Delivery (X) Long Distance Telephone Charges (X) Other Actual Identifiable Direct Costs Actual Actual Actual Actual Actual C-4 3-35 ----------------------------------- Deposit (X) Deposit Amount: $30,000 (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 rrom the 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. Otay Project, LP shall be responsible for the payment of seventy-five (75) percent and McMillin Otay Ranch, LLC shall be responsible for the payment of twenty-five (25) percent of the total amount paid to the Consultant by City staff rrom the Deposit for work performed pursuant to this Agreement. Applicant agrees to maintain a minimum balance of $15,000 in subject account which shall be immediately replenished upon the request of the City. ( ) 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 after agreement is processed. C-5 3-36. COUNCIL AGENDA STATEMENT Item Meeting Date 8/13/2002 ITEM TITLE: Resolution Approving the proposed extension o£the agreement between the City of Chula Vista, the Spring Valley Sanitation District and the City of San Diego for transportation of wastewater in the Spring Valley joint system for an ad,tdit~gnal ten years ^~fl / SUBMITTED BY: Director of Public Works/Il~' REVIEWED BY: City Manager ~O~ (4/5ths Vote: Yes No X) Due to the other jurisdictions along the northerly border of the City (i.e. National City, County of San Diego), the City of Chula Vista many years ago, determined that it was more efficient to enter into an agreement with the County of San Diego's Spring Valley Sanitation District to utilize the available capacity within their trunk sewer line to serve those residents within the City's jurisdiction who reside along the northerly border of the City Approximately 3 million gallons per day of sewage discharged from the northern part of the City of Chula Vista flows into the Spring Valley trunk line. This sewage is ultimately discharged into the City of San Diego's Metro Interceptor, which conveys the flow to the treatment plant in Point Loma. The City of Chula Vista has used this facility since 1964 under agreement with the County and has paid for the use of this facility. On May 20, 1997, Council by Resolution 18671 approved a new six-year agreement with the District to provide for the maintenance and operation of this line. This agreement had a provision which allowed the City to extend the terms of the agreement for an additional ten-year period. RECOMMENDATION: That City Council approve the resolution authorizing the proposed extension of the agreement between the City of Chula Vista and the Spring Valley Sanitation District for an additional ten- year period ending in June 2013. BOARDS / COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On March 9, 1964, Council by Resolution 3262 approved an agreement with the City of San Diego and Spring Valley Sanitation District for the joint use of the trunk line. Several other agencies ("Out-of-Disthct Users") also signed an agreement with the County for the use of this line. These agencies currently include: Lemon Grove, City of San Diego, La Mesa, and Otay Water District. Subsequently, on May 20, 1997, Council by Resolution 18671 approved a new six-year agreement with Spring Valley Sanitation District to provide for the maintenance and operation of this line. Under the terms of the agreement, the City of Chula Vista had capacity rights to Page 2, Item ? Meeting Date 8/13/2002 discharge peak flows not to exceed 17.64 cubic feet per second (11.4 million gallons per day) into the Spr/ng Valley Sanitation District's trunk sewer line. The current agreement, which took effect on July 1, 1997, is scheduled to expire on June 30, 2003. Section 19.5 of the agreement provided an option to extend the terms of the agreement for an additional ten-year period provided that the neither the City nor the District was in default on any of the terms of the agreement. This provision also required the City to initiate the extension in writing no earlier than 18 months and not later than I2 months prior to the expiration date. Since the City still needs the facility to provide sewer service to customers within the City's jurisdiction who live in the northerly portion of the City, and since the City currently discharges approximately 3 million gallons per day of sewage which is still within our allocated capacity rights, it is in the City's best interest to extend the agreement for an additional ten-year term. To that effect, in a letter dated June 18, 2002, addressed to the County of San Diego, (copy attached) the Director of Public Works indicated the City's intention to request a ten-year extension of the agreement pending final approval by City Council. It is staff's recommendation that the City exercise the option to extend the agreement for an additional ten-year term. Approval of the resolution formally notices the County that the City intends to seek continuance of the agreement for that additional period as required by the current agreement. Fiscal Impact: Under the terms of the agreement, the City is required to pay its pro-rated share of the maintenance and operations (M & O) costs of the trunk sewer system. The cost-allocation is based on the City's overall flow contribution. Recent estimates indicate that the City of Chula Vista generates approximately 25% of the total flow in the trunk line. For the last six-years the City's portion of the M & O has averaged approximately $35,000 per year. The City is also responsible for its pro-rated share of the District's Capital Replacement Costs for this trunk sewer line. The Capital Replacement Costs vary significantly from year to year depending on the number of planned improvements to the trunk line. The District provides information on planned expenditures on an annual basis. Based on this information provided by the District, funds are budgeted annually from the Sewer Service Revenue Fund to meet the City's obligation. Attachments A. Resolution 18671 13. Agreement between the City of Chula Vista and the Spring Valley Sanitation District for the transportation of wastewater in the Spring Valley Joint System C. Letter From the Director of Public Works to the Spring Valley Sanitation District dated June 18, 2002 J:\ENGINEER\AGIiN DA\Spring-Valley-Sanitation-District-Agreement-Extension ac.doc 0~/14/02 11:53 FAX 619 585 5774 CHULA VISTA CIT~ CLERK ~SOL~ION OF ~E CI~ ~CIL OF ~E CITY OF ~ VISTA ~PRO~ING AG~ B~E~ THE CITY OF C~ ~STA, ~E SPRING V~J.~ S~ITATION DIS~I~ ~ T~ CITY OF S~ DIE~ FOR ~E ~S~RTATION 'OF WAS'I'EWAT~ IN SPRIG ~.LEY JOI~ SYST~ ~ AOT~ORIZING THE ~YOR TM ~E S~D A~ ~S, a new a~e~t ~s drafted by ~e Spring Valley S~itation District of ~e Cowry of San DJ%go to provide for an e~it~le allocation of its maintenance, operation ~d capital replac~t costs among the Out-of-Dis~ict Users of ~e Spring Valley Sanitation Syst~ until ~e year 2003; and ~S, ~e City of ~ula Vista is an Out-of-District User; ~d ~S, ~e te~s of ~e old agreem~t have ~en e~ded by the Spring Valley Sanitation District to J~e 30, 1997 and ~e new a~e~ent must t~e effect on July 1, 1997; and ~S, to effect an4 hasten revision of the old a~eement, ~e City of Chula Vista wit~eld a potion of pa~ents to the Spring Valley Sanitation District during fiscal years 1992- 93 to 1995-96 and '~he wit~eld portiohs have accumulated t6 a total of $767,966; and ~S, the new a~eement provides that the City of ~ula Vista shall pay back ~e wit~eld pa~ents by June 30, 1998 and the Spring Valley Sanitation .District has agreed not to charge interest on ~e wi~held pa~ents if an initial pa~ent of $191,000 is ~de prior to July 1, 1997; ~d ~S, since the Spring Valley invoices for Fiscal Year 1996-97 ~e lower than anticipated due to a credit for previous overbilling, no additional appropriations are needed. NOW, TH~EFO~, BE IT RESOLVED the City Council of the City of ~ula Vista does hereby approve the A~eement between the City of ~ula vista, ~e spring Valley Sanitation District and the City of San DiegD for the Trans~rtation of Wastewater-in the Spring Valley Joint System~ BE IT ~ RESOLVED ~at the Mayor of the City of ~ula Vista is hereby au~orized and directed to execute said A~eement for and on behalf of the City. Presented by ApproVed as to fo~ by Jo~ P. Lippitt, Director of ~ M. Kaheny, City Attorney ~lic Works 0§/14/02 11~. FAX 619 585 5774 C~TJLA VISTA CITY CLERK ~002 COUNCIL AGENDA STATEMENT V'~gt~, the Sp, ;i~ Valley San~aq~ ~ ~ ~o Ci~ of ~ Diego ~r ~e ~~on of W~r A~o~ ~ ~yor to ~ ~ ~nt / BY: D~r of~ Wo~ ~ V~ flo~ ~o ~ ~ V~ ~n~ D~ Tomk ~veh to ~e ~in Mo~ So~ l~or at ~c Ba~o~ ~w~ s~ 1~ ~ hah F~d Sp~ h,g Vaney ~e M~ ~ T~m ~ ~ by S~ Dido pl~ a ~e f~ ~a~ ~ ~ S~ 1~9 ~n~ion~ ~ ~ 10~ of~ M~ ~. s~ge ~ ~ ~ mWion ~. ~ ~ M~ ~ d~l~, ~ipl~ z~ ~I~ so of ~g ~a n~ ~r ~k ~ ~w~. It ~ Ci~ of ~a ~ d~ pay ~ ~th~ld pa~ ~ J~ 30, l~i. ~ ~ng V~ey d $191,~ k ~ ~or ~ I~ I, l~. S~ ~ S~ V~ ~voi~ for ~ Y~ 1~ 97 ~ lo~r ~ ~a.~' &,am a ~ for ~o~ ov~g, A n~w ~a ~ ~ ~ ~ ~ V~y ~ D~ of ~ C~ ~ ~-Di~ w pw~ f~ ~ ~le ~ of ~ ~na~, o~on ~ ~pi~ ~~ ~ . ~ ~ ~D~ U~ of ~ ~ V~ ~on Ci~ of ~ ~ ~ ~ O~f-D~ U~r. ~ ~ a~ ~ m~ e~ on ]~y 1, 1997. 06/14/02 11:51 FAX 619 585 5774 CHULA VISTA CiTY CLERK ~00a Fage 2, Item 5/20/97 M__o~_ug Date RF_,CO~ATION: That Council approve the 'resolufioT, BOARI~/COIvII~O~ RECOMMENDATION: Not Applicable. DISCUSSION: OLD AGREEMENT ~ AMEN-D~ Several agencies ,.~l~.e tl~ Spring Valley Ou~. Sew~ (the 'Joint SysU~n'), which is owned and opel-auld by the Spri~ Valley Sanitation District of the Cou-? of ~n Diego (the "District'), for u~nsportation of wastewa~r to thc City of San Diego McU~oi~. Wastowa~ ('M~ro') Sym~ These al~cies (Out-of-Di~tlic~ Users or 'ODUs") lmve cxeam~ separa~ agreem~ms with tbe -Dish-i'"'"'~a The ~ ODEs include the cities of Ch,,l~ V'm-ta. La Mesa. Lc~non Grove. and San Diego~ and the Otay Wa~: District. On March 9, 1964. by C~ml~ Vista Council P.e. solution 3262, Chula VisIa e-~r~l inlo an ag~menI (the 'Old A~re~m~t') with the City of San Diego ~.d the Dishlct for use of the Joint Syst~n. This agro~a'atp.'ovided for the asscssme~ofa transportation char~to cover the cos~ of trausporti.g wastewa~; through the Joim System to the NIcU-o sysUm~ k docs not include costs for ex~-~ion projec:s, none of which are pl2..ed in the near futur~. Tbe txanspoxmtion charge is composed of three componcnls: a capacity char~, a service dmrgc, ~r~I a r, urjor xulocation a~d replac~me~ cbc_rgb. In ~ Old Agreement, the major relocation and ~placemcnt c~rgoe was as~u,rned to be part of thc service charge, e. xccpt wlmn related to ,~mral The Old A~cemc~ bps b:im revised four tlm~. TI~ first ~mat~dme_~ ~ OI1 02;16/71, e~ on 04/24/79. re~.scd Section 12 again on the method of calculrai.~ ~,i~ service clmrge payable to the District. The third amendmcnI, execut~l on 07/17/79, exte~,-d the life of thc co.'uacI to Man:h 9. 1994. Thc fourth ame. m.eut, execul~d on 06/18/91, revised Section 8 to specify Clmla V'mt~'s conirol of ilk~21laliOl~ operafiolL and m'ain~m'e of me/ers, revised Section 12 again to further de. frae m~thods of cal~!l.tl.g tl~ service cbarge payable to Rim Dislric~ for metered and un-metro'ed wast~water flows, revised Section 13 to introduce the term 'exttliYalent dv~lli.E n.i~' ("~,DU'), and revised Section 22 to refleci ~ Cbuls Vista indcranlty ~r~4 insurance pro'visions. Although O.,l~ Vista 1~ paid our share of Ibe Mc. ko Costs .t~) Spring Valley, we have noi paid costs sinc~ 199293 for transportation p~,~i.~ a new agreement. The old agn~m~nt expired in 1994, tmI the new agreeme~ provides for payi.E appropi~t_e back clmrges by July 1, 1998. 11:51 FAX 619 585 5774 CHUIA VISTA CITY CIJ~RK ~004 Page 3, Item 5/20[F1 Mee/l..oo Date DISTRICT'S SERVICE CHARGE The City of San Diego as~m.~es all agencies d~_'ng into the. Metro System for Clean Water ~ al~ malntennr~-~ ;~d Op~ol~ ("M&O') ~ nt a ram p~' miilloll~ of gallons' of waslrwat~ discharged imo thc 1M~tw sy~ir.m. Since the District's to~l flow is partly composed of flows from the ODUs, lt~ Dkmict recou~ its coat in paying the Metro Sa-vice Charge by assessing each ODU a s..-rvice charge based on mc/~red sewage flows or estimatext flows calculated from EDU cottnta. In Chula Vista's casc, the District's Service Charge was 110 perccm of/he Metro l'at¢ 10er thc City's flow inMO. 100 perecnt ofthc Metro rate charge went direedy to payin~ the City of San Diego. TI~ t~,,ai,,h~j 10 percent was collected by thc DisUi~ to pay for the M&O costs a.d calv/td/rep/acem~t cds~ of thc District's loint System. Although ~c Old Agrccn~nt pwvidcd for thc adjustment of the Metro ra~ to reflect actual Metro system M&O costs, thc Di-~tfict did not adjust i~ 10 percent cash,mia_ to reflect actual Joint ~ M&O costs. The 10 percent basis was a very rca~o~h e~ih,,ate which did not consider other factors which would more lx~ise;y proportion Cimla V'~ta's share in tl~ Joint System M&O cesta, such as the location point at ~ich th~ ODU discharges into the Joint System and the proportiomte At/"ua/, the Metro Service Charg~ were .m~nll, so ~ co~ndlng 10 pel'ce~lt of hNose chargc~ Was I11~0 m~rmll. A~ the Metro Service Charges increased, it was clear that a men: precise meaixxlolegy was nc~ded t~ enable Chub Vista, as well as tho oth~r ODUs, to pay their share in Joint Syat~n M&O costs based on a more accurate apprwdmntlon of actual syst~n costs. To force/he revision of moth¢~iology, Clmla V'~ta withbeld a portion of its annnal payments for the Distri~'s ,%_xvice Charges in Fiscal Years 1992-93 through 1995-96. The portion withheld was usually the 10 percent of the District's Sawice Charge in each of the Fiscal Years the payments wc~ withheld. In 1994, tl~ City of Chtfla Vista inltiatcd discussiom with the District regarding fair-share payment of the District's .%trice Charge, suggesting that the methodology be revised to'have the Joint 5'yaem M&O costs apportione41 ba,~d on th~ amount, and location, of flow discharged by an ODU. Up to thi~ time, fl~ District's motheds of allocating Wansportation charge to each ODU wcae not identical. In 1996, the District presen~ a revised agreement (the "Hew Agreement"), which would be sUbstanti~ly the same for all the ODUs. The provisions regarding fair-share paymtmt wct-~ r~vlev,,cd and agreed to by the District and the ODU ~ta/fa. leach ODU expressed support to the District, which was reflected in a County of ,?,an Diego Board Of Supervisors Agenaa Item at the September 30, 1996 Board of Supervisors meeting ~4ttac./m~nt A). 06/14/02 11:52 FAX 619 585 5774 CHUL~ VISTA CIT~ CLERK ~005 Page 4, Item 5/20197 Meetln~ Date The New Agreement docs not ~tiliTe 10 percent of the Meh'o rate as tbe b~-~i.~ fu~ assessing chargc~ to each ODU. T!.~ N~w Ar~,~n~nt now defm~ the DiStrict's Service Char~ as a com~oslte of three distinct compom~s and specifies the mcihodolog~ for each. These 1. MeUo Servi.:e Charg~ 2. Di~hict M&O Charge 3. capi~l Rep;acement Charge The changes from the Old .~'es~ to lt~ New Agreement are discussed as follows (Note th~ capacity charge has n~: Section 7. LIMITATIONS ON TYPE AND CONDITION OF SEWAGE ?.A. This is a mw cl:mse st~tln~ that Chula Vista wastewater sh~ll meet Section 65, 'Proln~ifions On Discharge of Water Sofamer Wa~s" of A~dcie VI, '~ on use of Disir~ Sewage ;>-'y~m~' of the current San Diego County Uniform Sewer Ordi~nee. This pe~im only ts flow diseh'arged to a wa~r reclama~., n plsnt~ and does not currently affect Chula Vista. ~, Section 8. ~G The revision to thi.~ s_ _~:a_'oE specifi~ ~h~t flow meters shall be of the 'Amscan Digital Systems' ('ADS") brnnd, and shall be annually eah"mat~l at Ch~da Vista ext~ase. It specifies District access to flow data via "dir.~ct computerized flow monitoring' for iadependent D~ict verification purposes. This requirement conforms to current City practice. Section 10. INFILTRATION It limits the e~'Jm~tted in~.tratlon to 10 perc. e~ of the ODU~g discharge to the Joint Section 12. SERVICE CttARGE The District's Service CTarg¢ still includes 100 percent of each ODU's prorated .~h~re of the Metro Service Charge a~e. ssed the District by the City of San Diego for M _e~'o M&O co,ts. However, in~tead of chnrg~g an ~dditional 10 .percent to ix~0up th~ District's Joint System M&O costs from each ODU, th~ actual annual District M&O costs are distributed among the ODUs based on the q~nti~y of flow, the length of.pipe the ODU's dischnrge travels through, and tbe dinme~er~ of this pipe. _ ~6/~4(~2 ._~1:~2 ~AX_61~ 585 5774 CHULA VISTA CITY CLERK ~006 Page ~, Item M~*_:~ Date The Capital Replacement ~large is now provided for separately and is only assessed for each unique project and for a limited time. This cha~gc is based on the ~ of total.flow each agextey disclmxges to the ~.~in~ Valley Joint Syste~n~ · l~ayment of the 10 percent of the anmml Metro Service Charges thron~h t~scal year 199697, in conformalr~ with th~ Old Agreement method, itwl~vrles all re~ costa through Iulle 30, 1997. The retroactive col:ection of replacement cos~, cited in the last sentence of Provision ~2.C.1. of the New Agreement, pertah~n only ~o costs incurred after that dale. This provision allows th~ Dist~tict to revi~.' its billin~s after the ac~a! ~anal constrtlction and amltlal m~int~ ,~ection 13. CHARGE A(~AINST CAPACITY RIGFITS IN M~TROPOLITAN SY~ 13.A.3. The revisio~x redefines flow from a slnEle family house from 265 gallons per day (gpd) to 240 gpd.' This rate is closer to the actual flow measured at our metering stations. 3~e flow rate for ~,l,,u~ercd single f~mfly flOWS was also red. ned to 240 g~d in :~ction 12. This ~han~e will mean tha~ Ch**~ Vista Will pay a smaller portion of tae Spring Valley ~ctro charges. Section 16. MAIOR RECONSTRUCTION, REPLA~ OR REPAIRS The agreement now specifies that Chxfla Vista shall reimburse the District for a proportionate share of the *llet costs* of recoxlstructiou. The me~nln~ of thin section is not chan~ed. Section 16.5. NEW COI~STRUCTION TO ~ SPRI~G V3Y .l.~y JOINT SYSTEM This is an cut~ely new scctioll st~tin~ provisions under which the District slmll acquire payment fxom an ODU for work ~m Ibc Joint System not included in its origlr~! desL~n: Basically, it requires the Distri~ and ODU to enter !n~o a separate agreement which shall stipulate terms of payment for lhe construction of said Work. Section 19. ARB1TRATIDN The revision clarifies the arbitration procedure. Section 19.5. OPT/ON '/~) EXTEND This new section provides for Chula ~v'~ta'~s option to extend thc life of th~ New Agreement by tea years. 06/14/02 11:52 FAX 619 585 5774 CHUIA VISTA CITY CLERK 1~]007 Page 6, Item 5/20/97 MeeIing ][Pate RETROACTIVE PAY1VI~ The District ha.~ agreed to waive interest ch~-- ~g~ on the previously w~hheld payments, provided that the City pays such an~,r~ according lo the schedule'set forth by the District (see Attactmumt B). The City must pay $191,000 thi.~ fiscal year (prior to July 1, 1997) and ~ rema;,,;,~g mount (total withheld payments mh,,,.q $191,000) next fiscal year (prior to July 1, 1998) to avoid/nterest cluage on the withheld paymel~. The am~ due to th~ District for ~ and operation by the 10 percem fox--da are as follows: 'f;'{vcal Year Amount 1~93-~4 $ 98,510 1994-95 $200,636 1995-96 $142.476 Total $767,966 District M&O Charge~ tlmaxgh June 30, 1997 aha, Contimm t~ be cal~latenl as 10 percent of the Metro Service Charges (s,~'e An_acinnent C). FISCAL IMI~ACT: For ti~ fiscal year, the C~ty will need to makn $191,000 in retroactive payments to the District from account 29_5-2250-5 202. Next fiscal year the balane~ of withheld paymenta, which is $576,966, must be entirely paid off. Retroactive payment was anticipated at the time staff decided to withhold paynim. Undex the new method, annual billin~ ahould be lower in the long term. The District'a budget for Fiscal Years 1998-99 t2nxough 2001-02 indic~*__~ tha~ ammal capital replacement projects will not exceed $550,000 per 3~ar during thi.~ period. Chula V'ma'a abate of the~e eom plus M&O wonld not be anticipated tx~ exceed $160,000. Co~ this to 10 percent of Metro's projected etmge during this period (~thieh would average $262 per MO) aM Chula Vista'~ an~eipated flow rate would yield aa e~ charge of $185,000 to $198,000 per year. Historical data also sho~, that the r6vised methodology would also have ~aved the City money up to the year 1993-94. However, from 1995 ~o 1997-98 the Di.~iet has Completed ,ome major repaim to their txunk llne w. hieh ax:O~ally ma~e the old method nlore advanmgoua up to 1997-'98. A I-~ 26. 1996 District-prepared comparitive analysis of the Di.~riet'a Service Charge, 'calculated by New Agreement methods verms the Old Agreement method, showed that a net savi%~ of approximately ~61,013 would have resulted between Fro:al Yearn of 1979-80 through 1993-94. Based on large recent capital expenditures to ~e tlnmk lln~, however, the 10 percent method was more advantabmus during F'~eal Yeata 1993-94 through 1995-96 and from tho pel:iod 06/14/02 11:53 FAX 6X9 585 5774 CItULA VISTA CXTY CLI~RK ~008 AGREEMENT BETWEEN THE CITY. OF CHI/LA VISTA AND THE SPRING VALLEY SANITATION DISTRICT FOR THE TRANSPORTATION OF WASTsWATER IN THE SPRING VALLEY JOINT SYSTEM made and entered into this~day of ~/~,~ T~IS AGREEMENT, 19'?~, by and between the CITY OF SAN DIEGO, a municipal corporation, sometimes hereinafter called "San Diego", the CITY OF CHULAVISTA, a municipal corporation, sometimes hereinafter called "Chu!a Vista", and the SPRING VALLEY SANITATION DISTRICT, a county sanitation district, sometimes hereinafter called the "District", replacing the AGREEMENT BETWEEN THE CITY OF C~ VISTA, THE CITY OF SAN DIEGO AND SPRING VALLEY SANITATION DISTRICT OF THE COUNTY OF SAN DIEGO FOR THE USE OF DISTRICT'S OUTFALL SEWER, dated 9TM MARCH 1964,. WI TNESSETH : 1. The District has- constructed an outfall sewe~ (hereinafter referred to as the "Outfall Sewer") from the site of District's abandoned treatment plant south-east of the intersection of Jamacha Boulevard and Sweetwater Road to a connection with the San Diego Metropolitan Sewera§e System (hereinafter referred to as the "Metropolitan System") near the intersection of'Interstate 5 and State Route 54, whic~ said outfall sewer was constructed with the proceeds of the sale of revenue bonds of the District issued pursuant to Chapter 5, Part 3, Division 5 (Sections 4950, et seq.) of the Health and Safety Code of the State of California. 2. The District has enacted Ordinance No. 6 pr~vidin§ for sewer service charges to be paid for the discharge of sewage through the outfall sewer. 3. Section 51 of the said Ordinance No. 6- and Covenant No. 8 of Section 20 of Ordinance No. 5 pursuant to which said bonds were issued, provide that the District may lease capacity rights in said outfall or any part thereof to one or more cities, pursuant to the article 8, Chapter 5, Part 3, Division 5 of said Health and Safety Code (Section 5060 et seq.). 4. The District finds tha~ it may lease capacity rights to said outfall sewer to Chula Vista without impairing the usefulness thereof. 5. Chula Vista and the District deem it mutually desirable and advantageous for Chula Vista to lease the use of District's outfall sewer for the transportation and disposal of sewage, subject to the terms, conditions and restrictions hereinafter set forth. 6. Said outfall sewer was designed and constructed specifically to serve the territory within the Spring Valley Sanitation District' and adjacent areas and, in addition, was designed and constructed to serve the Sweetwater River Basin as shown on the map hereto attached and marked Exhibit "A", 2 irrespective of whether said Sweetwater River Basin or portions thereof are annexed to the Spring Valley Sanitation District or became a part of the City of Chula Vista or.some other municipal corporation or public district authorized to provide sewer service. Although under the aforementioned ordinances of the Spring Valley Sanitation District and provisions of t~e Health and Safety Code, the District is restricted in leasing capacity rights in said outfall sewer to a period of fifteen years, it is contemplated that at the end of such fifteen year period there will continue to be capacity available for lease to serve the aforementioned Sweetwater River Basin. 7. Pursuant to an agreement between the City of San Diego and the Spring Valley Sanitation District described as "Sewage Disposal Agreement of 1960" dated February 7, 1960, and amendments thereto, the District has the right to discharge up to 10.7 million gallons of sewage daily into the Metropolitan System fr~m District's sewer lines. 8. Pursuant to a similar agreement between the City of San Diego and the City of Chula Vista dated ~, as amended, the City of Chula Vista has the right to discharge up to 19.20 million gallons of sewage daily into the Metropolitan System from Chula Vista's sewer lines. 9. Pursuant to an agreement between the City of San Diego 3 and Spring Valley Sanitation District described as "Agreement between the Spring Valley Sanitation District and the City of San Diego re Spring Valley Sanitation District Outfall Sewer" and dated April 11, 1962, San Diego .has the right to discharge sewage into various segments of the Spring Valley Sanitation District outfall sewer as more particularly set forth in said agreement.. 10. The parties hereto are agreed that all sewage originating in Chula Vista which is ultimately discharged into the Metropolitan System through Spring Valley Sanitation District's outfal! sewer shall be charged against Chula Vista capacity rights in said Metropolitan System and that all sewage discharged into District's outfall sewer from San Diego's connection into said outfall sewer which is ultimately discharged into the .Metropolitan System shall not be charged against District's capacity rights in said Metropolitan System. 1t. This agreement, therefore, shall establish the right~, privileges and duties of the parties concerning the use of the District's outfall sewer by Chula Vista; the construction and maintenance of connections to said outfall sewer by Chula Vista; specify the area within the City of Chula Vista to be served by the Spring Valley Sanitation District's outfall sewer unde~ the terms of this agreement; set standards governing waste charges and sewage flow; establish rent, fees and charges and the methods for 4 determining them; establish the formula used in ascertaining the amount of sewage discharged into the District's outfall sewer which is to be charged against Chula Vista's capacity rights in and to the Metropolitan System. 12. It is recognized that there exists a certain agreement between the parties hereto dated February 13, 1962, a true Copy of which is on file in the office of the City Clerk of Chula Vista, as a part of Resolution No. 2747 adopted January 2, 1962. These agreements shall be considered as separate and distinct agreements and the purposes of the agreement dated February 13,' 1962, are not included in the subject matter for purposes of this agreement and there is no intent of the parties by execution of this agreement to merge~ override or supersede the said agreement dated February 13, 1962. NOW THEREFORE, the parties hereto agree as follows: S~_ct~on 1. This agreemerit shali'take effect i~mediately.._ S~_c~t~ 2. The District hereby grants to Chula Vista an extension of the terms, conditions and restrictions of the prior AGREEMENT BETWEEN THE CITY OF CHULAVISTA, THE CITY OF SAN DIEGO AND SPRING VALLEY SANITATION DISTRICT OF T~E COUNTY OF SAN DIEGO FOR THE USE OF DISTRICT'S OUTFALL SEWER until~June 30, 1997. The terms, conditions and restrictions as hereinafter specified shall extend for an additional period of six (6) years from July 1, 1997 5 until June 30, 2003. Section 5. CONNECTIONS. Chula Vista, at its sole expense, shall construct, install, maintain, repair, replace and/or reconstruct all connections and appurtenances to the District,s ou~fall sewer installed or constructed by Chula Vista under the terms of this agreement. S~tion 4. ENGINEER'S APPROVAL. The location, installation, construction, repair (except emergency repairs) replacement and/or reconstruction of each and every such connection and appurtenance shall be in accordance with County design standards, Standard Specifications for Public Works Construction and San Diego Area Regional Standard Drawings. Section 5. MAP. Prior to the construction or installation of any such connection, Chula Vista shall furnish the District a map showing the area to be served by said connection. The area shown on said raap shall be the only area served by such connection under the terms of this agreement, and in no event shall Chula Vista allow any areas not shown on said map to be served by such connection. Subject to the limitations hereinafter set forth, and particularly the limitations set forth in Section 7, the area shown on any such map and to be served by a connection may be enlarged at any time by the filing of a new map showing additional area to be 6 served and payment of the area charge .specified in Section 11. Section ~. AREA TOBE SERVED. Only that area which is within the City of Chula Vista and within the Sweetwater River Basin or immediately adjacent to said Sweetwater River Basin and capable of being served by a sewerage system within sai'd Sweetwater River Basin by gravity flow sewers shall be served by District's outfall sewer under the terms of this agreement; provided however, that in the event Chula Vista annexes and incorporates within its boundaries areas lying within said Sweetwater River Basin or said areas immediately adjacent to said Sweetwater River Basin, which are not incorporated within the boundaries of Chula Vista on the effective date of this agreement, said areas, on the date of such annexation, shall become eligible to be served by District's outfall sewer under the terms of this agreement; provided, further, however, that areas outside of such areas as above described may be served on a temporary basis_ with the written consent of the District's Engineer which written consent shall specify such area and the duration of such temporary service. Chula Vista and District agree that for purposes of this agreement the boundaries, extent and limit of said Sweetwater River Basin shall be as delineated on the pl~t attached hereto and marked Exhibit "A" which by this agreement is made a pa~t of this agreement. In no event shall Chula Vista permit property other than that above in this 7 Section 6 described to connect to or. otherwise to be served by District's outfall sewer through sewer lines or connections owned or operated by Chula Vista. g~ct~n 7. LIMITATIONS ON TYPE AND CONDITION OF SEWAGE. A. All sewage discharged into the 'District's outfall sewer shall meet the standards established by the City of San Diego pursuant to Section 6 of the aforementioned SewaGe Disposal AGreement of 1960. Chula Vista shall not discharge into District's outfall sewer any sewage or wastes which do not meet the standards established by and for the District under appropriate ordinances, resolutions, rules or regulations. Chula Vista shall regulate and prohibit, the discharge into any sewer line connected to and served by District's outfall sewer of sewage and wastes which do not meet the quality and standards so established by the District. Chula Vista shall also comply. With the applicable statute~ rules and regulations of agencies of the United States of America, the State of California, and the City of San DieGo having jurisdiction over the collection, transmission, treatment and disposal of sewage and wastes. Chula Vista shall ensure that its sewage discharge into the District's outfall sewer meets Section 65, "Prohibitions On DischarGe of Water Softener Wastes" of the Article VI, 8 "Limitations on use of District Sewage System" of the current San Diego County Uniform Sewer Ordinance. B. Chula Vista shall not allow excessive infiltration or any surface or storm waters to be discharged into any' sewer system or facilities served by District's~ outfall sewer. S~t~n 8. METERING. If at any time during the term. of this agreement the daily flow of sewage into District's outfall sewer from Chula Vista's sewer lines increases to a point where it is deemed necessary or desirable by the District to measure all or a portion of such flow, the District shall make written demand on Chula Vista that Chula Vista install any and all such meters as District deems necessary or desirable. Within 365 days after receipt of such demand, Chula Vista shall at its sole expense, install such meters at the locations specified by the District. Said meters and installation shall be respectively of the American Digital System (~JDS) typ~ and insta%l~d at such locations and in-a manner approved by District's Engineer. At its own discretion and upon approval by the District Chula Vista may install meters in lines maintained by the District or the City of Chula Vista to measure all or any portion of the sewage discharged into District's outfall sewer from dhula Vista's connections to said sewer. Such meters as are installed shall be operated and maintained and annually calibrated by the City of Chula Vista or its agents, at 9 its sole expense, and be in good working condition for the duration of this agreement. Flow datainformation obtained from'such meters will be made available to the District through direct comPuterized flow monitoring and through quarterly reports provided by the City of. Chula Vista. From time to time, the District may at its own discretion conduct capacity measurements to determine actual peak and average daily flows through direct computerized flow monitoring. The results of these measurements may be used to verify, or to cause Chula Vista or its agents to restore, the accuracy of said meters installed by Chula Vista. section 9. PEAK FLOW. For the purposes of this agreement, "peak flow" shall mean the maximum instantaneous discharge of sewage expressed as a rate of flow in cubic feet per second (cfs). During the term of this agreement Chula Vista shall have the right to discharge peak flow into the District's outfall sewer not .to exceed 17.64 cubic feet per second, and the District shall have the obligation to receive such peak flow from Chula Vista. Temporary increases in the permitted peak flow resulting from rainfall shall not be considered violations of this agreement; provided, however, that the District i~ not obligated to receive from Chula Vista nor is Chula Vista privileged to discharge into District's outfall sewer any amounts in excess of the permitted peak flow under this 10 agreement which could endanger the pu~.lic health or safety. If Chula Vista exceeds the permitted peak flow on-more than a temporary basis (no more than thirty consecutive days in each fiscal year) and such excess is caused by a defect in the sewer system of Chula Vista capable of being corrected or the excess is caused by the discharge into the sewer system of Chula Vista by a sewer user of a large quantity of sewage in a short period of time, then Chula Vista shall cause such defect to be corrected to prevent the excess or shall cause the sewer user to construct and operate appropriate facilities to spread the discharge of sewage into its sewer system so as to reduce the peak flow to the permitted quantity. If the excess over the permitted peak flow results from an increase in the quantity of sewage not contemplated by the District and Chula Vista and does not arise from any causes hereinabove mentioned, Chuia Vista shall forthwith make such adjustments in its sewerage system ~a~'are necessary to reduce t.~e peak flow to the permitted quantity. If the excessive peak flow from Chula Vista's connections to District's outfall sewer causes the District to exceed its permitted peak flow into the Metropolitan System as determined by Section 21 of the "Sewage Disposal Agreement of 1960" between the District and San Diego, and because of such excess the District is required to pay additional sums of money to San Diego for such 11 excess capacity use as specified ig said Section 21 of said agreement, Chula Vista shall reimburse the District for the portion of such amount which are allocable to Chula Vista's excess peak flow. ~ecJziDD_lfl. INFILTRATION. It is understood and agreed that there will be inflow of water into District's outfall sewer because of leakage between the point or points at which the sewage from the public agencies using said sewer is delivered to District's outfall sewer and the connection of the outfall to the Metropolitan System. The District shall estimate the total waters that infiltrated the District's outfall sewer (sometimes referred to herein as "infiltration") by analyzing meter readings and counts of Equivalent Dwelling Units (hereinafter referred to as "EDUs") and apportion the same amongst all of such usersin the proportion that the amount of sewage discharged into the District's outfall sewer by each such user bears to_ the ~otal amount of the sewage discharged into the District's outfall sewer by all of such users of said sewer. However, the amount of infiltration apportioned to each such user shall not exceed 10% of the amount of sewage discharged into the Spring Valley Sewer System by each such user. Such amount shall b~ deemed a part of the sewage of such user for all purposes. S~a?dlion__ll. AREA CHARGE. Prior to the construction or 12 installation of each connection into District's outfall sewer, Chula Vista shall pay to the District a connection charge of One Hundred and Thirty Dollars ($130.00) per gross acre for each acre of land (including streets, easements and all public and private lands) within the area to be served by said connection as shown on the map filed pursuant to Section 5 of this agreement. In the event of fractions of an acre said sum shall be prorated accordingly. It is contemplated that if this agreement is renewed for additional periods of time this gross acreage fee will not be charged for any land for which an acreage fee was previously charged and paid. ~ac~LioD_12. SERVICE C~ARGE. 1. I~metered Connection. Chula Vista shall pay to the District a monthly service charge for the actual Metro Maintenance add Operation (Metro M & O) cost .~s requested by the City of San Diego for Chula Vista's discharge into the Metropolitan System through District's outfall sewer. In case of dispute with the City of San Diego in the amount of said charges, Chula Vista shall make payments of such charges under protest; if the final resolution of the dispute results in a reduced charge, the amount of said charges over-paidby Chula Vista shall 13 be credited to Chula Vista,.towards its payment to the District for future said charges. This Metro Service Charge shall be applicable to all family units, commercial, industrial and any Other type of users within the City of Chula Vista that are served by a sewer system connected to the District's outfall sewer. The Metro service charge shall be based on a flow of 240 gallons per day per EDU being serviced by District's sewer system, as reported by Chula Vista, or the flow rate deter~ned in accordance with subparagraph 2 below and computed as follows: (a) The term "EDU" as used in this agreement shall mean a single family dwelling unit or each single family dwelling unit in a duplex, multiple dwelling or apartment house. The nu~%ber of EDUs for each ~ategok-y of U'Se shall be assigned by Chul~ Vista and approved by District. Chula Vista may use the current County Uniform Sewerage Ordinance to establish EDUs for both residential and commercial/industrial EDUs with the exception that if the flow is unmetered, the flow per' EDU shall remain 240 gallons per day. Where a hotel, motel, trailer court, commercial or industrial 14 establishment or other type of enterprise or operation which normally generates a different volume of sewage than a single family dwelling is being served by District's outfall sewer; Chula Vista, with approval of the District, shall assign to each such establishment, enterprise or operation a number of EDUs in proportion to the estimated amount of sewage generated. Said number of EDUs so assigned 'shall be used in computing the amount of sewage discharged into the District's outfall sewer. Said assignment shall be made for each such establishment, enterprise or operation being served by the District's outfall sewer on the date when sewage is first discharged from Chula Vista's sewers into District's outfall sewer under the terms of this a_~reeme~t. ._ Thereafter, upon the connection of any such establishment, enterprise or operation to a sewer line being Served by District's outfall sewer, or upon the change in use of any property within Chula vist~ which is served by District's outfall sewer, which' change in use would affect the volume of sewage generated by such property, Chula Vista 15 shall report to the District the date of such connection or change in use and' assign an appropriate number of EDUs to such property with approval of the District's Engineer. (b) Chula Vista shall report to District quarterly the number of EDUs within Chula Vista being served by District's outfall sewer for all unmetered connections to said outfall sewer. (c) The Metro service charge shall be based upon the number of EDUs being served at the cormmencement of the quarter within which such month falls, for all unmetered connections. 2. Metered Connecti~nm. Notwithstanding the foregoing, at such time as and to the extent that meters are installed and calibrated, pursuant to Section 8 of this agreement., the Drovisi0ns of subpara~Fraph 1 shall .he superseded by this subparagraph 2 as to such metered connections and Chula Vista shall pay to the District, in lieu of the amount determined by said subparagraph 1, a Metro service charge ~ m~]]~on gal]~n~ of sewage received by the District's outfall sewer throu§h chula Vista's metered connections to said outfall sewer which amounts shall include a proportionate share of the 16 infiltration allocable to Chula Vista in accordance with Section 10 of this agreement. Said charge shall be the amount the City of San Diego charges the Sprin9 Valley Sanitation District per mil]~on ' 9m]]on~ of sewage discharged by the District into the Metropolitan System -under the aforesaid Sewage Disposal Agreement of 1960. District shall invoice Chula Vista quarterly for the amount of sewage discharged into District's outfall sewer. Chula Vista shall report to the District ~aarterly the amount of sewage discharged into the District's outfall sewer through such metered connections. 3. It is understood by the parties hereto that the Metro service charge for Chula Vista's prorated share of the maintenance and operation costs of the Metropolitan Sewerage System shal~be based on the latest estimate o~ such costs as provided by the City of San Diego; provided, however, that the amount of the last installment of the fiscal year shall be subject to adjustment to reflect actual Metro M & 0 costs for that fiscal yegr. In case of underpayment the balance shall be due and payable within thirty (30) days followin9 receipt of notice of actual'Metro M & 0 costs from the 17 City of San Diego. 4. Metro service charges computed by ~District in accordance with either subparagraph 1 or 2 or both, shall be paid quarterly by Chula Vista to the Distric~ within thirty (30) days after presentation.~f a bill for said charges by the District. B. Ili~trict's M & O Charqa. 1. Chula Vista shall pay to the District a maintenance and operation cost for Chula Vista's discharge into the District's outfall sewer. The amount of said cost to be paid by Chula Vista to Spring Valley shall bear the same ratio to the total amount of all allocable costs of said maintenance and operation (such as pipeline cleaning, management and operation) of Spring Valley including the South County Operation Center as the sum of the products_of th~' (estimated and/or measure.d) flow rate of Chula Vista's sewage in each and every Spring Valley pipe multiplied by the length and diameter of the same pipe~bears to the sum of the products of the (estimated and/or measured) flow rate of total sewage in each and every Spring Valley pipe multiplied by the length and diameter of the same pipe. 2. District's M & O charge computed by District in 18 accordance with subparagraph. 1 shall be paid annually by Chula Vista to the District within thirty (30) days after presentation of a bill for said charges by the District. C. Capita] Replacement Charge~. 1. Chula Vista shall pay to the District a proportionate share for the capital replacement costs for District's outfall sewer used by Chula Vista. The amount of such share for capital replacement costs to be paid by Chula Vista'to the District shall bear the same ratio to the total amount of all allocable District's capital replacement costs of such reconstruction, replacement or repairs as the amount of sewage discharged into District's outfall sewer from chula Vista's connections to said outfall sewer bears to the total amount of sewage discharged into said outfall sewer at the time when said reconstruction, repl~ce~egt"or repairs becomes nec~ssa.r~. Such amount of said proPortionate share computed by District shall be based on the actual costs of reconstruction, replacement and repairs of District's outfall sewer, includin9 all costs of surveying, design, construction, easement acquisition, environmental studies and/or environmental imp. act reports, processing required permits through agencies, implementation of environmental 19 mitigation measures, field inspection and project administration to complete such reconstruction, replacement or repair project. District may recover capital replacement costs on a retroactive basis. 2. The charg? provided for -in-subparagraph 1 hereinabove shall be paid annually on February 1 after presentation of a bill for said charge by the District on or before the preceding April 1. It is understood by the pa~ties hereto that the service charge computed pursuant to either subparagraphs A.1 or A.2, and B.1 and C.1 is to cover/recover, respectively, (i) the District's prorated share of the maintenance and operation costs of the San Diego Metropolitan Sewerage System which the District must pay to the City of San Diego under the terms of the aforementioned "Sewage Disposal Agreement of 1960" between the District and the City of San Diego, and (ii) a share of_the District's costs in maintainiD_g and operating the District's outfall sewer. The Metro service charge as computed in subparagraphs A.1 or A.2 will automatically adjust for any increase or decrease in the Metropolitan Sewerage System charges. However, the 'District's M & 0 Charge in subparagraph B.1 and'the Capital Replacement Charge in subparagraph C.1 may be increased or decreased from time to time by the District in direct proportion to any increase or decrease in cost to the 2O 9 District in maintaining and operating ~aid outfall sewer. A copy of the District's Annual Audit Report shall be furnished Chula Vista upon request. ~. C~ARGE AGAINST CAPACITY RIGHTS IN METROPOLITAN S~STEM. A. All sewage discharged into District's outfall sewer through Chula Vista's connections, under the .terms of this agreement and thereafter discharged into the San Diego Metropolitan Sewerage System, and all infiltration allocable to Chula Vista as determined by Section 10 of this agreement, shall be charged against Chula Vista's Capacity rights in and to the Metropolitan System as such rights have been determined bY that certain agreement between the City of San Diego and the City of Chula Vista entitled "Sewage Disposal Agreement of 1960" and dated Jun~ 1~ 1961. The average daily flow of such sewage to be so. cha~ged a~ains~ 'Chula Vista's capacity rights shall be determined as follows: 1. The amount of infiltration allocable to Chula Vista for the fiscal year (as said fiscal year is specified in said "Sewage Disposal Agreement of 1960") as determine~ pursuant to Section 10 of this agreement, shall be divided by the number of days in said fiscal year and the result shall be added to the average daily flow of sewage as determined.by subparagraphs 2 and 3 of this Section 13. 2. That portion of the sewage discharged into District's outfall sewer through Chula Vista's connectiOns to said outfall sewer during the fiscal year (as specified in said "Sewage Disposal Agreement of 1960"), measured by meters pursuant to Section 8 of this agreement, shall be divided by the number of days within said year. The result shall be added to the result of subparagraph 3 of this Section 13. 3. That portion of said sewage not measured by meters shall be determinedby the EDU system as specified in Section 12 of this agreement. The average number of EDUs served daily under the terms of this agreement shall be multiplied by 240 gallons. Said average shall be computed by averagin~ the humber of EDUs being served_by the District's outfal! sewer, as reported quarterly during the fiscal year (as specified in said "Sewage Disposal Agreement of 1960") by Chula Vista pursuant to Section 12 of this agreement. B. The ~mount of. sewage to be charged against the District's capacity rights in and to the Metropolitan System under the aforementioned "Sewage Disposal Agreement of 1960" 22 between the City of SanDiego and the Spring Valley Sanitation District, shall be computed by di¥iding the total number of gallons of sewage and infiltrated waters discharged into the Metropolitan System from the District's outfall sewer during the fiscal year (as specified in said "Sewage Disposal Agreement of 1960") by the number of days within said year and subtracting therefrom the amount of sewage allocable to Chula Vista as computed in accordance with subdivision A this Section 13; the amount of sewage discharged into said outfall sewer by San Diego pursuant to Sections 6, 7 and 9 of that certain agreement between the District and San Diego entitled "Agreement Between Spring Valley Sanitation District and the City of San Diego re Spring Valley Sanitation District Outfall Sewer" and dated April 11, 1962, as said agreement has heretofore or as it hereafter may be amended; and the amount of sewage discharge~ into ~aid 96tfall sewer by other agenci~ pursuant to other such agreements divided by the number of days within said fiscal year~ C. Chula Vista and Spring Valley shall submit reports to the City of San Diego annually allocating the sewage which originates within their respective geographical areas of jurisdiction for purposes of determining whether either party has exceeded the capacity service previously allocated under 23 their respective .Sewage Disposal'~greements of 1960 with the City of San Diego. S~t~nn 14. TRANSFER OF TERRITORY. If, because of annexation, transfers, consolidations or other cause, any territory within the City of Chula Vista served by the~District's outfall sewer is transferred to another jurisdiction, Chula Vista shall remain responsible and be charged for the sewage and infiltrated waters from such territory discharged into the District's outfall sewer as provided in this agreement until the parties hereto execute an appropriate amendment to this agreement transferring such responsibility and the obligation to make payments pursuant to this agreement to such other jurisdiction. Sac3~x~l_lS. REPAIR, RECONSTRUCTION AND REPLACEMENT. The District's outfall sewer shall be maintained by District in good repair and good working order in accordance with sound engineering practices. It shall be the dut_y of t~e District to make repairs.~n said outfall sewer and to make replacements (including reconstruction) required to keep such outfall sewer in good operating condition. Except as provided in Section 16 and 17 hereof, all repairs, reconstruction and replacements shall be part of the SERVICE C~IARG~ as specified in Section 12 of this'agreement. Section ]6. MAJOR RECONSTRUCTION, REPLACEMENT OR REPAIRS. Notwithstanding the provisions of Section 15, hereof, if, as a 24 result of natural disaster, operation, of Federal or State law or other causes beyond the District's control, it becomes necessary for the District to undertake major reconstruction, replacement or repairs of said outfall sewer or any portion thereOf, Chula Vista shall reimburse the District for a proportionate share of the net costs of such reconstruction, replacement or repairs. The amount to be paid by Chula Vista to the District shall bear the same ratio to the total costs to the Spring Valley Sanitation District of such reconstruction, replacement or repairs as the amount of sewage discharged into District's outfall sewer from Chula Vista's connections to said outfall sewer bears to the total amount of sewage discharged into said outfatl sewer at the time when said reconstruction, replacement or repairs becomes necessary, which amount of sewage discharged into District's outfall sewer from Chula Vista's connections to said outfall sewer shall be deemed to be the amount of sewage.allocable to Chula Vista as last computed for purposes of this Section 13 of this agreement. Any obligation on the part of San Diego to contribute for a proportionate share of such costs of reconstruction, replacement or repairs shall be governed by the provisions of that certain a~reement between San Diego and the District entitled "Agreement Between Sp~ing Valley Sanitation District and the City of San Diego re Spring Valley Sanitation District Outfall Sewer" and dated April 11, 1962. 25 S~t~on 1g-5. NEW CONSTRUCTION .TO THE SPRING V/LLLEY JOINT SYSTEM. The District may propose additions, expansions or improvements to the Spring Valley Joint System which were not included in the original design. Any such proposal shall describe the proposed additions, expansions or improvements, the estimated cost thereof, and the additional charge (annual or otherwise), or method of computing such additional charge, to be paid by the Out- Of-District user. In the event that the District'and the Out-Of- District user enter into an agreement pertaining to such proposed additions, expansions or improvements and the additional charge (annual or otherwise) to be paid by the Out-Of-District user for the use of said additions, expansions or improvements, the District shall proceed to acquire and construct the proposed additions, expansions or i~provements in accordance with such agreement and the Out-Of-District user shall pay the District in accordance with the terms of said agreement. _ Section 17. ~ CONSTRUCTION TO THE SAN DIEGO METROPOLITAN SEWERAGE SYSTEM. In the event that the City of San Diego elects under Section 14 of the "Sewage Disposal Agreement of 1960" between the District and San Diego, to construct additions or improvements to the San Diego Metropolitan Sewerage System and said additions and improvements are used by the District in connection with the use or operation of District's outfall sewer, Chula Vista shall 26 reimburse the District for a Proportignate share of any costs of such additions or improvements which the District is 'required to pay to San Diego under the terms of said "Sewage Disposal Agreement of 1960". The proportion of the costs to be paid by Chula Vista to the District shall bear the same ratio to the total costs to the District of such additions or improvements as the amount of sewage discharged into District's outfall sewer from Chula Vista's connections to said sewer bears to the total amount of sewage discharged into said outfall sewer on the date when the District first uses such additions or improvements, which amount shall be deemed to be the amount of sewage allocable to Chula Vista as last computed for purposes of Section 13 of this agreement. .~ec~siful__LS. INTERRUPTION OF SERVICE. In the event of an interruption of service to Chula Vista by the District's outfall sewer, as a result of disaster, operation of State or.Federal law, discontinuance of or interruption of Service to the district of tile San.Diego Metropolitan Sewerage System, or any other cause beyond the control of the District, District shall bear no liability and shall be held free and harmless by Chula Vista from any claims and liabilities for any injury to or damage to any person or persons or property or for the death of any person or persons arising from or out of such interruption of service or for any other damages or costs incurred by Chula Vista as a result of such interruption of 27 service. SP-ckio/l_l~. ARBITRATION. All controversies.arising out of the~ interpretation or application of this agreement shall be settled byarbitration in accordance with this section. The matter in. controversy shall be submitted to a single arbitrator mutually selected by the parties. The arbitration shall be 'conducted pursuant to section 10240.8-10240.13 of the Public Contract Code. The arbitration decision shall be decided under the law of this State, shall be .supported by substantial evidence and in writing, and shall contain the basis~for the decision, the findings of fact and the conclusions of law. A party may, within the applicable time period and upon the ground specified in this section and in Article 1 (commencing with section 1285) of Chapter 4 of Title 9 of Part 3 of the Code of Civil Procedure, petition the court to confirm, correct, or vacate the decision rendered by the arbitrator. A court shall vacate the decision, or part, or part thereof, if it determines either that the decision, of part thereof, is not supported by substantial evidence or that is not decided under or in accordance with the laws of this State. Sa~2~D/l~kg_~5. OPTION TO EXTEND. In the event neither Chu~a Vista nor the District is in default under this agreement and D~strict is allowed to exercise its option to extend, for a period of ten (10) years, the agreement between the City of San Diego and 28 the District entitled "Sewage Disposal Agreement of 1960" pursuant to Section 26 of said agreement of 1960, Chula Vista'may, at its option, extend this agreement for a period of ten (10) years upon the same terms and conditions as are herein set forth. Such option to extend must be exercised in writing by Chula Vista not earlier than eighteen (18) months and not later than one (1) year prior to the expiration of the term of this agreement, and Chula Vista shall have the same capacity service during such extended term as it had at the expiration of the term of the previous version of this agreement. SacJsion ~0. NOTICE. Notices required or permitted under this agreement shall be sufficiently given if in writing and if either served personally upon or mailed by registered or certified mail to the clerk or secretary of the governing body of the affected party to this agreement. Section 21. LIABILITY_ N0t~ing herein contained shall operate to relieve Chula Vista of any liability for damages to persons or property arising from or out of the installation, construction, operation, maintenance, repair, replacement and/or reconstruction of the aforesaid sewer connections and appurtenances or from any action or inaction of Chula Vista or of its officers, agents or employees in connection therewith. Nothing herein contained shall operate to relieve District of 29 any liability for damages to persons or propert~ arisinG from Or out of the installation, construction, operation, maintenance~ repair, replacement and/or reconstruction of the aforesaid sewer connections and appurtenances or from any action or inaction of District or of its officers, agents or employees in connection therewith. ~. INDEMNITY - INSURANCE. A. Chi]Ia Vista Tndemnity. TO the extent it may legally do so, Chula Vista shall defend and save and hold free and harmless the District and its agents, officers and employees from any claim, liabilities, penalties or fines for injury to or damage to any person or property or for the death of. any person arisinG from or out of any act or omission of Chula vista, its agents, officers, employees or contractors, arising from or out of any defects in the installation, construction, operation, maintenance~ ~ep~ir, replacement and~or reconstruction of said sewer connections and/or appurtenances, including sewage flow meters installed according to Section 8 Of this AGreement. B. D~tri~t~lndemn~ty. To the extent it may legally Bo so, District shall defend and save and hold free and harmless Chula Vista and its agents, officers and employees from any claim, liabilities, penalties or fines for injury to or damage 3O to any person or property or for the death of any person arising from or out of any act or omission of District, 'its agents, officers, employees or contractors, arising from or out of any defects in the installation, construction; operation, rgaintenance, repair, replacement and/or reconstruction of said sewer connections and/or appurtenances. S~. TIME OF ESSENCE. Time is of the essence of this agreement. S~. SEVERABILITY~ If any section, subsection, sentence, clause, phrase or word of this agreement, or the application thereof, to any party, or any other person or circumstance is for any reason held invalid, it shall be deemed severable and the validity of the remainder of the agreement or the application of such provision to the other parties or to any other persons or circumstance shall not be affected thereby. Each party hereby declares that it would have e~tered into this agreement and each section, subsection, sentence, clause, phrase and word thereof irrespective of the fact that one or more sections, subsections, sentences, clauses, phrases or words, or the application thereof to any party or any other person or circumstance be held invalid. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their respective officials pursuant to resolution adopted by the Board of Directors of the Spring Valley 31 Sanitation District dated ; Resolution No. adopted by the City Council of the City of San Diego dated ; and Resolution No./~ ~/adopted by the City Council of the City of Chula Vista dated /~//~.~ Approved as to form and legality THE CITY OF SAN DIEGO this ~--.~ day of /~---- , By of t~/City of Se~--Di~3o~ . Approved as to form and legality CITY OF CHULAVISTA this day of By ~~ Shirle~Horton, Mayor City Att6rney _~,~F~O of the City of ' Approved as to form and legality SPRING VALLEY SANITATION this ~ day of ~~,~ DISTRICT Thomas J. Pas~nszka County Counsel/% - Clerk of the District Board of By 64, Deputy /Approved and/or authorized by the of SupeDJisor; of the Goun~y of S~a Diegg~ / D~te.//--/c~ - ~/~/Nlinu~e Orde~ No."~.~//, / · rHO ,S P^STUSZ, 3 2 Sy~-~-~· Deputy Clerk CrlY OF June 18, 2002 CHUIA VISI'A File No. 0790-70-KY073-4 DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION Co~mty of San Diego Department of Public Works 5555 Overland Avenue San Diego, CA 92123 Attention: Doug Isbell, Deputy Director REQUF~T FOR THE EXTENSION OF THE SPRING VALLEY SANITATION AGREEMENT FOR A TEN-YEAR PERIOD On May 20, 1997, the County of San Diego (Spring Valley Sanitation District and the City of Chula Vista executed the "Agreement Between the City of Chula Vista and the Spring Valley Sanitation District for the Transportation of Wastewater in the Spring Valley Joint System" (copy attached) wherein provisions were made for the conveyance of sewage from Chula Vista in Spring Valley Sanitation DisWict's trunk sewer ("Ouffall') to the San Diego Metropolitan Sewerage System. Under the terms of the agreement, the City of Chula Vista had the right to discharge peak flows into the District's Outfall sewer not to exceed 17.64 cfs (11.401 mgd) for a 6-year peri.od ending JUne 2003. The agreement also provides for an extension of the agreement for another ten years provided that the request was made in writing no later than one year prior to the expiration of the agreement. Currently, the City of Chula Vista discharges an average daily flow of 3.052 mgd (est. Peak Flows of 5.175mgd.), which complies with the terms of the agreement. Since, the City s. till needs to provide service to areas along the northerly border of the City, which are tributary to the outfall, we hereby request that the agreement be extended and the service continued for an additional ten-year period subject to City Council approval. Therefore, since this request is still subject to our City CoUncil approval, this letter will serve as City of Chula Vista's statement of intention. In the interim, we will work on the details of taking the agreement to our City Council for final ratification within the next few weeks. It is my understanding that the County Board of Supervisors does not need to ratify the extension~ therefore, approval by our Council will be the only action required to facilitate the extension of this agreement for an additional 10 years, terminating in June 2013. If you have any questions or need clarifications regarding this request, please call me at (619) 691- 5294. Thank you very much for your assistance on this issue. gohn Lippitt Director of Public Works Enclosure ' J AEnginee r\SEWER~Spring-Valley-Agr~ement-Exte nsiort.ac.doc q 276 FOURTH AVENUE/CHULA VISTA. CALIFORNIA 91910-26,R1 / RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PROPOSED EXTENSION OF THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA, THE SPRING VALLEY SANITATION DISTRICT AND THE CITY OF SAN DIEGO FOR TRANSPORTATION OF WASTEWATER IN THE SPRING V ALLEY JOINT SYSTEM FOR AN ADDITIONAL TEN YEARS WHEREAS, due to the other jurisdictions along the northerly border of the City (i.e. National City, County of San Diego), the City ofChula Vista many years ago, detennined that it was more efficient to enter into an agreement with the County of San Diego's Spring Valley Sanitation District to utilize the available capacity within their trunk sewer line to serve those residents within the City's jurisdiction who reside along the northerly border of the City; and WHEREAS, approximately 3 million gallons per day of sewage discharged from the northern part of the City of Chula Vista flows into the Spring Valley trunk line; and WHEREAS, this sewage is ultimately discharged into the City of San Diego's Metro Interceptor, which conveys the flow to the treatment plant in Point Loma; and WHEREAS, the City ofChula Vista has used this facility since 1964 under agreement with the County and has paid for he use ofthis facility; and WHEREAS, on May 20, 1997, Council by Resolution 18671 approved a new six year agreement with the District to provide for the maintenance and operation of this line; and WHEREAS, this agreement had a provision which allowed the City to extend the tenns ofthe agreement for an additional ten-year period. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista does hereby approve the proposed extension of the Agreement between the City ofChula Vista, the Spring Valley Sanitation District and the City of San Diego for transportation of wastewater in the Spring Valley joint system for an additional ten year period ending in June 2013. BE IT FURTHER RESOLVED that staff is authorized and directed to take all necessary and appropriate measures to implement the extension. Presented by Approved as to fonn by J:/attorney/reso/spring valley extension John P. Lippitt Director of Public Works Lf- 4L{' COUNCIL AGENDA STATEMENT Item Meeting Date: 8/13/02 ITEM TITLE: Resolution Appropriating $2,524,596 from the Available Fund Balance in the Trunk Sewer Capital Reserve Fund as a loan to the Salt Creek Gravity Basin DIF Fund, appropriating $10,182,824 from the Available Fund Balance in the Trunk Sewer Capital Reserve Fund to the Salt Creek Gravity Sewer Project (SW219), and appropriating $2,524,596 in unanticipated loan proceeds and $850,000 from the Available Fund Balance in thc Salt Creek Gravity Basin DIF Fund to the Salt Creek Gravity Sewer Project (SW219) Resolution Accepting bids and awarding contract for the "Phase 111 of the Salt Creek Gravity Sewer Interceptor (CIP No. SW-219)" project to Cass Construction, lng. in the amount of $8,432,382.60 SUBMITTED BY: Director of Public Works/~ REVIEWED BY: City Manager ~or~ (4/Sths Vote: Yes X No The Salt Creek Gravity Sewer Interceptor is a 12.5-mile sewer line that is being built to serve certain developments in the eastern territories and a portion of the developed portion of the City within the Main Street Basin. The project was originally funded based on preliminary engineering studies prepared for the project. However, having completed the design plans for the project and received bids on two phases of the project, recent engineering estimates indicate that additional funds are needed to complete the project. The approval of these resolutions will l~acilitate the completion of all the remaining phases of the project, and the award of the contract to Cass construction for the construction of Phase III of the project. RECOMMENDATION: That Council approve the following resolutions: 1. Appropriating $2,524,596 from the Available Fund Balance in the Trunk Sewer Capital Reserve Fund as a loan to the Salt Creek Gravity Basin DIF Fund, appropriating $10,182,824 from the Available Fund Balance in the Trunk Sewer Capital Reserve Fund to the Salt Creek Gravity Sewer Project (SW219), and appropriating $2,524,596 in unanticipated loan proceeds and $850,000 from the Available Fnnd Balance in the Salt Creek Gravity Basin D1F Fund to the Salt Creek Gravity Sewer Project (SW219). 2. Accept bids and award the contract for the "Phase III of the Salt Creek Gravity Sewer interceptor (CIP No. SW-219)" project to Cass Construction, Inc. in the amount of $8,432,382.60. Page 2, Item ~ Meeting Date 8/13/02 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Background On, December 6, 1994 upon completion of the "Salt Creek Gravity Basin Plan" by Wilson Engineering, Council adopted Ordinance No. 2617, establishing the Salt Creek Gravity Basin Development Impact Fee (DIF) as a funding mechanism for the construction of the Salt Creek Gravity Sewer Interceptor. The basin plan split the project into nine reaches, numbered 1 through 9 as shown on Exhibit No. 1. The cost o£Reaches 1 through 8 formed the basis of the DIF and Reach 9 was classified as a regional £acility and as such was considered a City obligation. It was recommended that Reach 9 be funded utilizing the Trunk Sewer Capital Reserve Funds which is derived from capacity fees paid by every property connected to the system. However, prior to the formation of the DIF, development began in the upstream portion o£ the Salt Creek basin (i.e. EastLake Development and Rolling Hills Ranch). Since the sewer facility, which was supposed to serve that portion of the basin, had not yet been constructed, flows generated fi.om these developments were pumped into a different basin (the Telegraph Canyon Basin). As development activity in the eastern te~citories accelerated, it became obvious that the Salt Creek Trunk Sewer needed to be constructed as soon as possible since the Telegraph Canyon Trunk Sewer and the Date/Faivre Trunk Sewer which cu~ently serve that area were both approaching threshold capacity. On June $, 1999, the City retained Dudck & Associates to prepare a Preliminary Design Report that would form the basis of design for the Salt Creek Gravity Sewer Interceptor. Based on the estimates in that report the City initially funded the project with $18, 000,000 as follows: I. Trunk Sewer Capital Reserve Funds - $8,589,500 2. Loan fi.om the Trunk Sewer Capital Reserve Funds to the Salt Creek DIF - $8,885,500. 3. Funds collected in the Salt Creek DIF Fund - $525,000 Revised Project Cost Estimates Since the project was initially funded there have been several major changes that have significantly changed its scope and cost. Below are some of those activities/changes: 1. Re-evaluation of the land use projections for development within the Salt Creek and Wolf Canyon Basins indicated that the land use projections had changed significantly from when they were originally analyzed in 1994. This led to a revision of the Hydraulic Analysis for the system, which ultimately resulted in the increase of the diameter of the pipe within Reach 9 from 36" to 42" (+$700,000). Page 3, Item ~" Meeting Date 8/13/02 2. Environmental and right-of-way constraints, which were not originally anticipated, led to the realignment of the pipeline through additional segments of Main Street. This decision triggered additional pavement reconstruction and also resulted in the use of an expensive Micro-tunneling process to install the pipe under 1-5 Freeway (+$2,000,00). 3. Utility information, which was not available at the inception of the process, later dictated that the pipeline had to be installed at depths greater than what was originally conceived. Consequently, the deeper pipeline resulted in wider trenches leading to additional reconstruction work along Main Street. (+$1,000,000). 4. To address concerns raised by the environmental community regarding the sewer project's effect on the Preserve especially Reaches 3 & 4), these reaches were designed as dual-pipe systems with a Supervisory Control and Data Acquisition System (SCADA). This is a system that allows remote monitoring of the pipeline. In addition, a $1,000,000 endowment will be made to the Preserve Management Endowment Fund (PMEF) following issuance of the City's Section 10(a) permit under the Federal Endangered Species Act. This fund's main goal is to support Preserve restoration and maintenance (+$3,750,000). 5. The project has required a greater level of consultant and staff resources to prepare design plans, manage the project and provide needed legal consulting services than was originally anticipated ($2,500,000). 6. The City has calculated more realistic cost estimates based on finished plans and recent contract bid prices obtained with Phases I & Ili of the gravity sewer project. 7. The pace of development activity within the City, the importance of the project for the continuation of that development, and the fast pace at which existing sewer facilities were approaching threshold capacity resulted in aggressive project schedules and expensive installation strategies that ultimately affected the cost of the project. Project Phasing Since the creation of the Salt Creek Basin in 1994, the City has taken several steps to construct various portions of the project. Portions of Reaches 4 & 5 were constructed in 1997 as part ora Joint project with SDG&E's Pipeline 2000 project. Some of the other portions of the trunk line were constructed by developers within the basin as part of their development projects with the idea of seeking DIF Credits at a later date. The completed portions are as follows: Reaches Cost Status Completion Date Reach 1 $173,613 Completed 2000 Reach 2 $379,859 Completed 2001 Reach 4B & 5A $693,105 Completed 1997 Page 4, Item Meeting Date 8/13/02 To expedite the construction of the trunk sewer line, the remaining portions of the project were broken into four phases as shown on the attached exhibit B. The various phases of the project and the cost of constructing each of these phases are shown below. Phases Reaches Cost Status Completion Date Phase IV Reach 3 $2,437,826 Design 100% Complete February 2003 Reach 4A $3,946,546 Reach 5B $1,059,097 Reach 6 $779,824 Reach 7 $690,910 Pre-Construction Stage February 2003 Phase III Reach 8A $1,003,533 Reach 8B $1,560,464 Reach 9A $5,271,315 Phase I Reach 9B $8,l 11,542 Under Construction August 2002 Phase 1I Reach 9B' $5,389,467 Design 95% Complete April 2003 Total Cost of Remaining Reaches $32,250524 Phase II1 of the Salt Creek Gravity Sewer Interceptor The "Phase III of the Salt Creek Gravity Sewer Interceptor" project is the second of four construction phases that will ultimately complete the construction of a trunk sewer line from the Eastlake and Roiling Hills Ranch subdivisions to the City of San Diego Metro Interceptor located west of Interstate 5 (See Exhibit "1" for details). The segment of the Salt Creek Trunk Sewer designated as Phase II1 which is the subject of this analysis includes the portion located within Main Street, from immediately west of Interstate 805 to Heritage Road, then heading easterly and northerly along a dirt road that follows the low point of the Salt Creek Basin and finally terminating at the end of the existing Salt Creek Sewer line installed as a joint project with SDG&E's Pipeline 2000 project. The approximate length of this segment of the trunk line is 32,395 feet (6.14 miles) and the diameter and material is primarily 42-inch polyvinyl chloride (P.V.C.). The installation of the trunk sewer will utilize open-trench methods. Work to be done on the project also includes the reconstruction of an existing storm drain system, installation of a SCADA system, labor, materials, equipment, transportation, and other work as may be necessary to render the improvements complete in-place. Prc~ject Advertisement and Bid Results Dudek and Associates, Inc. of Encinitas, California, prepared the plans and technical specifications for the "Phase II1 of the Salt Creek Gravity Sewer Interceptor" project. The City's Infrastructure Design section prepared and advertised the project for bidding. Two mandatory pre-bid meetings were held for the project. The first mandatory pre-bid meeting was held on May 23, 2002 to review the requirements of the project and to receive any questions or concerns regarding the plans and specifications from the prospective contractors bidding on the project. Attendance by said contractors at this meeting was required in order to submit a bid Page 5, Item 5 Meeting Date 8/13/02 for the project. However, due to the short time period that notice was given for the mandatory pre-bid meeting, a second mandatory pre-bid meeting was scheduled and held on June 24, 2002 to allow contractors absent at the first pre-bid meeting to attend and be allowed to submit a bid for the subject project. The contractors present at the first pre-bid meeting were not required to attend the second one in order to submit a bid. At each of the two (2) mandatory pre-bid meetings held, several contractors present raised several concerns during the meetings and also afterwards through phone calls and faxes; all issues that City staff felt required clarification were consequently addressed through three (3) addendums for the project. Additionally, an optional site/field visit was also held on June 24, 2002 for the contractors potentially bidding on the project. This was an opportunity for the contractors to physically observe, examine and visit the project site prior to submitting their bid. It should be noted that all required right-of-way for the subject project will be acquired prior to the start of construction. City staff received and opened bids on Wednesday, July 3, 2002 at 2:00 p.m. City staff received excellent bids for the project. The lowest responsive bidder for the project was based on the contractor who submitted all required documents detailed in the contract documents and who submitted the lowest base bid for the project construction. Bids from eight (8) contractors were received as follows (Bids sorted by the base bid amount): BASE BID CONTRACTOR (Salt Creek Sewer, Phase I[I) 1. Cass Construction, Inc. $8,432,382.60 2. Don Kelly Construction $8,698,962.00 3. Kenko Inc. $8,794,212.00 4. Vido Artukovich & Son. $9,077,303.00 5. T.C. Construction $9,181,882.00 6. PCL Civil Constructors, Inc. $9,222,996.00 7. Erreca's Inc. $9,778,333.00 8. Southern California Underground $11,843,486.00 The total low bid from Cass Construction, Inc. is below the Engineer's estimate of $11,024,463.00 by $2,592,080.40 or approximately 23.5%. The Engineer's estimate was based on average unit prices for similar types of work completed during the last three (3) years. City staff has seen a recent trend with bids coming in below the Engineer's estimate, which seems to indicate that the construction industry is once again becoming more competitive. Staff will incorporate the unit price bid results into our database for future project estimates. Engineering staff checked several of the references provided by the Cass Construction, Inc. All references checked were verified and their work has been satisfactory. Furthermore, their Page 6, Item ~ Meeting Date 8/13/02 Contractor's License Number (298336) is clear and current. Accordingly, Staffis recommending awarding the contract to Cass Construction, Inc. in the amount of $8,432,382.60. Right of Way On June 4, 2002 Council by Resolution No. 2002-188 initiated eminent domain proceedings to acquire the required easements from property owners along the path of the alignment of the Salt Creek Gravity Sewer Interceptor. Since then, the City's Acquisition's Agent has worked with the property owners to acquire the needed fight-of-way for just compensation. Presently, four of the six property owners have granted to the City of Chula Vista the needed right-of-way for the construction of the project. Environmental Status The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act. Environmental Impact Report No. 01-03, prepared for the Salt Creek Sewer was previously certified by the City Council. EIR 01-03 covers all phases of the Salt Creek Sewer Trunk line. Thus, no further environmental review or documentation is necessary. Disclosure Statement Attachment "A" is a copy of the contractor's Disclosure Statement. Prevailing Wage Statement The sources of funding for this project are the Salt Creek Sewer DIF and the Trunk Sewer Capital Reserve Fund. No special Disadvantage Business Enterprise (DBE) and/or minority or women owned business requirements were necessary as part of the bid documents. Disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various trade publications. Based on the current project funding guidelines, the contractors bidding this project were not required to pay prevailing wages to persons employed by them for the work under this project. Page 7, Item ~' Meeting Date 8/13/02 Financial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount (Cass Construction, Inc.) $8,432,382.60 B. Contingencies (10%) $845,000.40 C. Staff Costs (Administration and Inspection) $250,000.00 D. Consultant Costs (Soils, Materials & Storm Water Testing) $200,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $9,727,383.00 FUNDS AVAILABLE FOR CONSTRUCTION A. Salt Creek Sewer DIF $5,343,946.00 B. Trunk Sewer Capital Reserve Fund $4,383,437.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $9,727,383.00 The above action of awarding the contract will authorize a total expenditure of $9,727,383.00 from the budgeted CIP project. The portion of the subject trunk sewer line that will be funded by the Salt Creek DIF includes Reaches 6, 7, 8, and a portion of Reach 5 and accounts for approximately 21,511 (4.07 miles) feet of the overall Phase Ill project. The remaining portion of the Phase III trunk sewer line, which is primarily the remaining portion of Reach 9, extends for approximately 10,884 (2.06 miles) feet and will be funded by the Trunk Sewer Capital Reserve Fund. The amounts detailed in the above table have been estimated by City staff and are considered the "fair share" amounts that each fund should be obligated to contribute for the construction of the subject project. CIP COST ESTIMATE T0tal Cost 0f the 8~lt CreekGravi~ Sewer Interceptor ~i th~m R9)$33¢197,10! DIF Liability (R1, R2A, R2B, R3, R4A, R4B, R5A, R5B, R6, R7, R8A, R8B) $14,724,777 Constructed by Developers In exchange for DIF Credits (R1, R2A & R2B) ($553,472) Constructed as a Joint Project with SDG&E - Loan From Trunk Sewer Fund to the DIF (R4B & R5A) ($693, [05) $13~4~8,200 Page 8, Item ~ Meeting Date 8/13/02 ~DITIONAL Trunk Sewer Capital Reserve Funds FY/00/01 $7,289,500 City Trunk Sewer Capital Reserve Funds FY/01/02 $1,300.000 Obligation Trunk Sewer Capital Reserve Funds FY 02/03 $10,182,824 Loans From Trunk Sewer Loan From Trunk Sewer to DIF (R4B & R5A) FY96/97 (SW210) $693,105 DIF Loan From Trunk Sewer to DIF (R3,4A,5B,6,7,8) FY00/01(SW219) $7,585,500 Obligation Loan From Trunk Sewer to DIF (R3,4A,5B,6,7,8) FY01/02 (SW219) $1,300,000 Loan From Trunk Sewer to DIF (R3,4A,5B,6,7,8) FY02/03 (SW219) $2,524,596 Salt Creek DIF FY00/01 $525,000 Suit Creek DIF FY02/03 $850,000 Total Funds in the Salt Creek DIF Account ] I I I $10,103,605 I $3,374,596 Total Amount Budgeted-(SW219 & SW210) I I I I $18,693,105 I $13,557,419 Total Amount to Complete all phases of the Salt creek Pr°ject ~2~250i524 FISCAL IMPACT Fund Allocation As previously mentioned, the project is being funded through two funding sources, Trunk Sewer Capital Reserve Funds and the Salt Creek DIF. To complete the project, additional funds in the amount of $13,557,419 is required to complete the project. Council approval of this resolution will authorize the expenditure of $10,182,824 from the Trunk Sewer Fund to meet the City's obligation for constructing Reach 9. in addition, it will authorize the appropriation of the accumulated balance of $850,000 in the Salt Creek Gravity Basin DIF Fund into the Salt Creek (SW219) project account. Furthermore, it will authorize the appropriation of $2,524,596 from the un-appropriated balance of the Trunk Sewer Capital Reserve Fund to be transferred into the Salt Creek DIF account as a loan to the DIF. Maintenance The D1F funding mechanism does not include funding for maintenance. The City will be solely responsible for the maintenance of the trunk sewer line. Any maintenance or future replacement of the pipe will be achieved utilizing the Sewer Facilities Replacement Fund. There are currently adequate funds in the fund to fund the maintenance of the trunk line. Salt Creek DIF Update When the Salt Creek DIF was initially established, the cost of the project was estimated to be $18,067,867. Of that amount, $9,897,189 was considered City obligation and $8,170,678 was allocated amongst the benefited properties (28,737 EDUs) to set an initial DIF Fee of $284/EDU. However, since the cost of the project has changed significantly, staff is in the process of preparing the necessary reports to facilitate a revision to the Salt Creek DIF. This report will be Page 9, Item ~'- Meeting Date 8/13/02 presented to Council within the next few momhs upon receipt of the bids for the fourth phase of the project. The Engineer's Report will outline the funding sources and layout the repayment plan for the repayment of all the loans borrowed from the Trunk Sewer Capital Reserve Fund. With the approval of this resolution, the total amount loaned from the Trunk Sewer Capital Reserve Fund to the Salt Creek DIF will be $13,557,419. The Salt Creek DIF will be re-structured such that this amount is repaid over a 20-year period. The DIF fee will also be re-structured to increase in direct proportion to the interest on the loan. Exhibit: 1 - Salt Creek Sewer Interceptor Delineation of Reaches 2 - Salt Creek Sewer Interceptor - Delineation of Construction Phases Attachment: A - Contractor's Disclosure Statement (OPY TO FILE: 0735-10-SW219 J:\engineer\aGENDA\SAI.TCRK I .doc 8/7/02 3:46:16 PM TH E CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters which will require discretionary action by the Council, Planning Comrmssion and all other official bodies of the City, a statement of disclosure of certain ownership or financial ihterests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. It 2. If any person* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $1000 investment in the business (corpomtion/parmership) entity. 3. If any person* identified pursuant to (1) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or tmstor of the trust. 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. 16 JSEngineer~ADMIN~CONTRACTXSW219PhllI.doc ~-~ _-t~__.~ , 5. Has any person* associated with this contract had any financial dealings with an official** of the City ofChula Vista as it relates to this contract within the past 12 months? Yes_No~ If Yes, briefly describe the nature of the financial interest the official** may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? Yes No X If Yes, which Council member? 7. Have you or any member of your governing board (i.e. Corporate Board of DirectorsÆxecutives, non-profit Board of Directors made contributions totaling more than $1,000 over the past four (4) years to a current member of the Chula Vista City Council? Yes_No ¿)( If Yes, which Council member? 8. Have you provided more than $300 (or an item of equivalent value) to an official** of the City ofChula Vista in the past twelve (12) months? (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No -\: If Yes, which official** and what was the nature of item provided? Date: 7.h;0 z.. 1M! ¡1;,"S12"ð7o-.(z:¡¡JI' -J,... p~ Print or type name of Contractor/Applicant * Person is defmed as: any individual, finn, co-partnership, joint venture, association, social club, fiaternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Plarnling Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. ];\EngineerIADMIN\CONTRAC1ìSW219PhllI.doc 17 5-13 RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND A WARDING CONTRACT FOR THE "PHASE III OF THE SALT CREEK GRAVITY SEWER INTERCEPTOR (CIP SW-219)" PROJECT TO CASS CONSTRUCTION COMPANY, INC. IN THE AMOUNT OF $8,432,382.605 WHEREAS, on Wednesday, July 3, 2002 at 2:00 p.m., the Director of Public Works received the following eight sealed bids for "Phase III of the Salt Creek Gravity Sewer Interceptor (CIP No. SW-219)" project in the City ofChula Vista, California: CONTRACTOR BASE BID (Salt Creek Sewer, Phase III) 1. Cass Construction, Inc. $8,432,382.60 2. Don Kelly Construction $8,698,962.00 3. Kenko Inc. $8,794,212.00 4. Vido Artukovich & Son. $9,077,303.00 5. T. C. Construction $9,181,882.00 6. PCL Civil Constructors, Inc. $9,222,996.00 7. Erreca's Inc. $9,778,333.00 8. Southern California Underground $11,843,486.00 WHEREAS, the total low bid from Cass Construction, Inc. is below the Engineer's estimate of $11,024,463.00 by $2,592,080.40 or approximately 23.5%; and WHEREAS, Engineering staff checked the references provided by the contractor and their work has been satisfactory; and WHEREAS, staff has reviewed the low bid and is recommending awarding the contract to Cass Construction, Inc. in the amount of $8,432,382.60; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act, Environmental Impact Report No. 01-03, prepared for the Salt Creek Sewer and previously certified by the City Council and no further environmental review or documentation is necessary; and WHEREAS, the sources of funding for this project are the Salt Creek Sewer DIF and the Trunk Sewer Capital Reserve Fund, therefore, no special Disadvantage Business Enterprise (DB E) and/or minority or women owned business requirements were necessary as part of the I 6'-¡t; ,---- bid documents, however, disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various trade publications; and WHEREAS, based on the current project funding guidelines, the contractors bidding this project were not required to pay prevailing wages to persons employed by them for the work under this proj ect. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept bids and award the contract for "Phase III of the Salt Creek Gravity Sewer Interceptor (CIP No. SW-219)" project to Cass Construction Company, Inc. in the amount of $8,432,382.60. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said contract on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt Director of Public Works ~ 7.. i4..- ~ John M. Kaheny City Attorney J:\Attomey\Reso\Salt Creek Sewer Interceptor bid Phase III 2 ç; -/6 RESOLUTION NO. 2002- RESOLUTION OF THE CITY OF CHULA VISTA APPROPRIATING $2,524,596 FROM THE AVAILABLE FUND BALANCE IN THE TRUNK SEWER CAPITAL RESERVE FUND AS A LOAN TO THE SALT CREEK GRAVITY BASIN DIF FUND, APPROPRIATING $10,182,824 FROM THE AVAILABLE FUND BALANCE IN THE TRUNK SEWER CAPITAL RESERVE FUND TO THE SALT CREEK GRAVITY SEWER PROJECT (SW219), AND APPROPRIATING $2,524,596 IN UNANTICIPATED LOAN PROCEEDS AND $850,000 FROM THE AVAILABLE FUND BALANCE IN THE SALT CREEK GRAVITY BASIN DIF FUND TO THE SALT CREEK GRAVITY SEWER PROJECT (SW219) WHEREAS, the Salt Creek Gravity Sewer Interceptor is a 12.5 mile sewer line that is being built to serve some of the developments in the eastern territories and a portion of the developed portion of the City within the Main Street Basin; and WHEREAS, the project was originally funded based on preliminary engineering studies prepared for the project; however, having completed the design plans for the project and receiving bids on two phases of the project, recent engineering estimates indicate that additional funds are needed to complete the project; and WHEREAS, the project is being funded through a combination of two funding sources: Trunk Sewer Capital Reserve Funds and the Salt Creek DIF; and WHEREAS, since the Salt Creek Gravity Sewer Basin Development Impact Fee Fund has not collected enough funds to facilitate the construction of the line, a loan is required to fund the constructions of the facility; and WHEREAS, it is necessary for Council to appropriate funds to facilitate the completion ofthe project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby appropriate $2,524,596 from the available fund balance in the Trunk Sewer Capital Reserve Fund as a loan to the Salt Creek Gravity Basin DIF Fund, appropriate $10,182,824 fiom the available fund balance in the Trunk Sewer Capital Reserve Fund to the Salt Creek Gravity Sewer Project (SW219), and appropriate $2,524,596 in unanticipated loan proceeds and $850,000 from the available fund balance in the Salt Creek Gravity Basin DIF Fund to the Salt Creek Gravity Sewer Project (SW219). Presented by Approved as to form by John P. Lippitt Director of Public Works Ð~ 7.L John M. Kaheny City Attorney ff/r!... J:/attomey/reso/appropriation SC Sewer 6 -/LI- --.---- COUNCIL AGENDA STATEMENT Item &, Meeting Date 08/13/02 ITEM TITLE: Resolution Approving a Final Map for Chula Vista Tract No. 90-07, Bella Sol, Sunbow II Unit I2 (Planning Area 11) of the City of Chula Vista. Accepting on behalf of the City of Chula Vista, Assignable and Irrevocable General Utility and Access Easements, Public Sewer Easement, Sight Distance Easement granted on said Map within said Subdivision, approving the Subdivision Improvement Agreement for the completion of improvements required by said subdivision, and authorizing the Mayor to execute said agreement Resolution Approving a Final Map Supplemental Subdivision Improvement Agreement for Chula Vista Tract No. 90-07, Bella Sol, Sunbow Il Unit 12 (Planning Area 11), requiring Developer to comply with certain unfulfilled conditions of Design Review Committee Case No. 02-21 and authorizing the Mayor to execute Said Agreement Resolution Approving adjustment in boundary of the City Open Space Lot A and authorizing the Mayor to execute a Quitclaim Deed for the City's property within Lot 1. Resolution Approving a Grant of Easement and authorizing the Mayor to execute a Grant of Easement for Maintenance Purposes over City Open Space ~,ot A. SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager ~,O* (4/Sths Vote: Yes No ~ On May 22, 1990 and on July 20, 1993, by Resolution No. 15640 m~d Resolution 17177 respectively, City Council approved the Tentative Subdivision Map for, Sunbow II (CVT No. 90-7). The Council will be considering the approval ora Final Map for Bella Sol, Sunbow II Unit 12 (Planning Area 11) and associated agreements. Said Map contains one Condominium Lot and one Open Space Lot. The Condominium Lot will contain a maximum of 108 units. RECOMMENDATION: That Council adopt the following: 1. Resolution approving the Final Map for Bella Sol, Sunbow II Unit 12 (Planning Area 11), and associated Subdivision Improvement Agreement, and 2. Resolution approving the Supplemental Subdivision Improvement Agreement for Bella Sol, Sunbow II Unit 12 (Planning Area 11) Page 2, Item Meeting Date 8/13/02 3. Resolution approving adjustment in boundary of the City Open Space Lot A and authorizing the Mayor to execute a Quitclaim Deed for the City's property within Lot 1. 4. Resolution approving a Grant of Easement and authorizing the Mayor to execute a Grant of Easement for Maintenance Purposes over City Open Space Lot A. DISCUSSION: The Project is located west of Paseo Ladera and south of Telegraph Canyon Road within the area of Sunbow II. The Map consists of one numbered lot (the Condominium lot), one lettered lot (a City- owned open space lot to be maintained by the Sunbow II Community Facility District (CFD 98-3). The total map area is 18.016 acres (see Exhibit 1). On January 16, 2002, the Chula Vista Design Review Committee (DRC) approved the Bella Sol Project with Conditions of Approval (DRC 02-21). The Map also realigns the boundary between the two lots. The net acreage of both lots essentially remains the same, but the adjusted shape of the Condominium lot is better suited to the Project. The Developer has agreed to have the proposed homeowner association maintain the Project's perimeter wall, which was originally to be maintained by CFD 98-3. Since the City is signing as an owner on the map and the map does not distinguish which land is owned by each party, quitclaim deeds need to be exchanged so that ownership of the individual lots can be recorded. Standard Pacific Corp. (the present owner of the property) will quitclaim its interest in the City open space Lot A as shown on the final map. In turn, in order to complete the lot boundary realignment, the City will deed to Standard Pacific Corp. a small portion of Lot W Sunbow Phase 2A (the original City-owned Lot). Therefore, the City Council is requested to authorize the Mayor to execute a quitclaim deed for the City's interest in that portion of Lot W of Sunbow Phase 2A that is now within Lot 1. City is owner of Lot A. Since the perimeter wall is located on the boundary between Lots 1 and A, the future homeowners association will need an access easement over the Lot A in order to maintain the wall. The final Resolution authorizes the Mayor to execute a Grant of Easement for maintenance purposes to Standard Pacific, its successors and assigns. The Final Map has been reviewed by the Planning and Building and Public Works Departments and found to be in substantial conformance with the approved Tentative Map and DRC Conditions of Approval. Approval of the Map constitutes acceptance by the City of all assignable and irrevocable general utility and access easements, public sewer easements, sight distance easements and the wall easement granted on the Map. The developer has executed a Supplemental Subdivision Improvement Agreement, which addresses several on-going conditions of the Design Review Committee Case No. 02-21 that remain in effect until the Project is conveyed to the homeowners and the homeowners association. Page 2, Item Meeting Date 8/13/02 The Developer has bonded for and agrees to complete all on and off-site street improvements required for the approval of this Map within two years following Map approval, or sooner if construction permits for the required improvements have been issued. ENVIRONMENTAL The City's Environmental Review Coordinator has reviewed the Final Map and has determined that it is consistent with Sunbow II Final Environmental Impact Report (FEIR) 88-01, Addendum to FEIR 88-01 and Mitigation Measures, and other related environmental documents. The Final Map will not result in any new environmental effects that were not previously identified, nor would the Final Map result in a substantial increase in severity in any impacts previously identified. FISCAL IMPACT: None to the City. Developer has paid all costs associated with the proposed Map and agreement. Exhibit 1: Plat - Chula Vista Tract No. 90-07, Bella Sol, Sunbow II Unit 12 (Planning Area 11) Exhibit 2: Developer's Disclosure Statement Attachments: A. Supplemental Subdivision Improvement Agreement (SSIA) B. Subdivision Improvement Agreement (SIA) C. Quitclaim Deed D. Grant of Easement File No. 0600-80-SB021F J:\engineer\aGENDA\SB021F A I 13.doc .... :,..,~.x~J{ e ~A:K~Nb 619-696-7419 (THU) 8. 8'02 1{,.~4/ST. 10:°°/'~,NO,4c~61~199i8 .P 2 THI~ ~ OF (~ VISTA DI$C'LO$~ S'rAT~ Put, anal ~o Co~.~cil Policy 101-01, prior to any sc~ion upon matters which will rcquL-c discretionsO, action by the Cotmcil, PlanninS Commission and all oOcr official bodies of thc City. z statement o£dlsclosu~ of ccr~in ownership or fir~ancial interests, payments, or con, psion conm'btrtions for a Ci~, of Chis Vista election must be filed. TI~e following information nlu~;I be dis=loscd; 1, List thc names of all persons bavins a financial intcrc.st in thc property that is the subject of thc application or 'thc conh'~ct, c.g., owner, applicant, co~ractor, subconh'ac~or, ma~"rial st~pplicr. If amy pc~o~' id~nlificd pu~uan~ to (1) above is a oorpor~llon or partnership, li~t ~l.~e nan..- of all L~di¥iduals with a $1000 investment i~ th~ busings (corlx~al~on/pa~norship) entity. Ii~ n~y pcrsc~* id~-tti~cd pursuant to (1) above is a non-profit organ{zation or trust, Iis~ Iht names of any person $cr~ng as director of thc nOn-l:~rofi~ or~nizacion or a~ tr,.~== or bc'n¢ficla_~'y or trusior of Please id~ntif~ evory pa-son, including any agcr~s, employees, consultants, or i~l~p~nd~t ¢onlractors yot~ have ncsi~cd to reproach! yoo before the City in 00.:;}; LA TEfJI Í¡ \'iA~K INS 619-696-7419 (THill 8. 8' 112 1 II 35/ST 10: 33/NO 4f;61 g:y91fi : . ~ 5. Has any person" associatcd with this conhct had any financial dealings with IITI official" of the City ofChul. Vista as it relates Ie this contnlct within thc past 12 macths7 Ycs_NoL r-\.lp.- If Yes, bricfly describe the oalUTe of the financial interest the official" may haw: in this contract. r-11 þ. 6. Have you made a ~onlnDution of mOl'C th.1u:t SZSO within ~t twelve (12) months 10 a c\JITCItt member of the Cbwa Vista City Counci]~ Yes No HYes, wmch Council mcmbct1 7. Have you or any member of your ;ovcming board (i.e. Ccnporate Boa:nI of DirectorslExcçuûYei. non-profit Board cfDireC10n made COIItribtttiollS totIIIing mOl'C than $1,000 ovcc1bc past four (4) y.:an to a =t "'cmb~r of th~ ChuJa Vista City Council? Yel_No ~ If YÞS, which Council member? 8. Have you provided more than 5300 (or an item of èquivalent value) to an cfficia]** of the City of Chula Vista in the past twelve (12) months? (Thj~s being a source of income, money 10 retire á legal debt, gift, Jean, etc.) Yes _ No HYco, wh;~h official-' and what was the natw-c of itan provided? ¥;. lW Signature of Contractorl AppJicml ~l~ L.l.~ ~2t?:"" ~~ Print or type name of Ccnlractorl Applicant Date: f'.MG.. 'iI ?N-.2- , . Persau is defined a.s: any individual, finD., e~ership, joint YCDtwe, a.s.sociation, soeial club, futtcma1 organiz:atian, eotpOration, estate, trust, receiver, syndicate, any other ~ouøty. city, municipality, dirttiet, ór other politic;al subdivision, -or aIlY oth... group or eombination acting as a writ. -* Official ÏI1c:ludes~ but is not limited to: .Mayor, COWlcil member, P1a:m:ùng Commissioner,. Membc::r of a board, commission, or committ~e of the City, employee, or staff membeu. H:\HOME\ENGINEER\ADM:INlCONTRACTlDISCLOSE.DOC o b ~b RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP OF CHULA VISTA TRACT NO. 90-07, BELLA SOL, SUNBOW II UNIT 12 (PLANNING AREA 11). ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA, ASSIGNABLE AND IRREVOCABLE GENERAL UTILITY AND ACCESS EASEMENTS, PUBLIC SEWER EASEMENT AND SIGHT DISTANCE EASMENT GRANTED ON SAID MAP WITHIN SAID SUBDIVISION, APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista hereby finds that certain map survey entitled Chula Vista Tract NO. 90-07, BELLA SOL, SUNBOW II UNIT 12 (PLANNING AREA I I), and more particularly described as follows: Subdivision of Lot 238 and Lot "W" ofChula Vista Tract 90-07, Sunbow Phase 2A Units 8, 9, 10 and 12 in the City ofChula Vista, County of San Diego, State of Cali fomi a, according to Map thereof No. 14076 filed in the Office of the County Recorder of San Diego County on November 21, 2000. Area: 18.016Acres Numbered Lots: 1 Open Space Lots: 4.243Acres No. of Lots: 2 Lettered Lots: 1 is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision ofland shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED, said Council hereby accepts on behalf of the City ofChula Vista the assignable and irrevocable general utility and access easements, public sewer easement and sight distance easement. Noting that use of said general utility and access easements by others is subject to written pennission and issuance of an Encroachment Pennit from the City of Chula Vista, all as shown on this map within this subdivision, subject to the conditions set forth thereon. BE IT FURTHER RESOLVED that the City Clerk of the City ofChula Vista be and she is hereby authorized and directed to endorse upon said map the action of said Council; that said Council has approved said subdivision map, and that those certain easements with the right of ingress and egress for general utility, and general access, as granted thereon and shown on said map within said subdivision, are accepted on behalf of the City of Chula Vista as herein above stated. BE IT FURTHER RESOLVED that City Clerk be and she is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. 1 0-7 BE IT FURTHER RESOLVED that that certain Subdivision Improvement Agreement dated the 2002 for the completion of improvements in said subdivision, copy of which is on file in the office of the City Clerk, is hereby approved. BE IT FURTHER RESOLVED that the Mayor ofthe City ofChula 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 6!æSll1 c~ Joh aheny City Attorney J:lattorney/reso/bella sol fm 2 b-·? 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 (J~ Ø:/1lc~ ~ffi¡ M. Kaheny City Attorney Dated: d' --- s: --- () 2-- SUBDIVISION IMPROVEMENT AGREEMENT FOR BELLA SOL, SUNBOW II, UNIT 12 0-1 Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, Ca. 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Declarant SUBDIVISION IMPROVEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of , 2002, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City", and STANDARD PACIFIC CORP., a Delaware corporation, 5750 Fleet Street, Suite 200, Carlsbad, CA 92008, hereinafter called "Subdivider" with reference to the facts set forth below, which Recitals constitute a part of this Agreement; RECITALS: WHEREAS, Subdivider is about to present to the City Council of the City of Chula Vista for approval and recordation, a final subdivision map of a proposed subdivision, to be known as BELLA SOL, SUNBOW II, UNIT 12, pursuant to the provisions of the Subdivision Map Act of the State of California, and in compliance with the provisions of Title 18 of the Chula Vista Municipal Code relating to the filing, approval and recordation of subdivision map; and WHEREAS, the Code provides that before said map is finally approved by the Council of the City of Chula Vista, Subdivider must have either installed and completed all of the public improvements and/or land development work required by the Code to be installed in subdivisions before final maps of subdivisions are approved by the Council for purpose of recording in the Office of the County Recorder of San Diego County, or, as an alternative thereto, Subdivider shall enter into an agreement with City, secured by an approved improvement -1- b - /0 security to insure the performance of said work pursuant to the requirements of Title 18 of the Chula Vista Municipal Code, agreeing to install and complete, free of liens at Subdivider's own expense, all of the public improvements and/or land development work required in said subdivision within a definite period of time prescribed by said Council; and WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into this agreement wherein it is provided that Subdivider will install and complete, at Subdivider's own expense, all the public improvement work required by City in connection with the proposed subdivision and will deliver to City improvement securities as approved by the City Attorney; and WHEREAS, a tentative map of said subdivision has heretofore been approved, subject to certain requirements and conditions, as contained in Resolution Nos. 15640 and 17177, approved on the 2200 day of May, 1990 and the 20th day of July, 1993 respectively ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improvement work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 02064-01 through 02064-15 inclusive, on file in the office of the City Engineer; and WHEREAS, an estimate of the cost of constructing said public improvements according to said plans and specifications has been submitted and approved by the City in the amount of ONE MILLION ONE HUNDRED SIXTY-SIX THOUSAND TWO HUNDRED EIGHT DOLLARS AND NO CENTS ($1,166,208.00). NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS: 1. Subdivider, for itself and his successors in interest, an obligation the burden of which encumbers and runs with the land, agrees to comply with all of the terms, conditions and requirements of the Tentative Map Resolution; to do and perform or cause to be done and performed, at its own expense, without cost to City, in a good and workmanlike manner, under the direction and to the satisfaction and approval of the City Engineer, all of the public improvement and/or land development work required to be done in and adjoining said subdivision, including the improvements described in the above Recitals ("Improvement Work"); and will furnish the necessary materials -2- 6· /( therefor, all in strict conformity and in accordance with the plans and specifications, which documents have heretofore been filed in the Office of the City Engineer and as described in the above Recitals this reference are incorporated herein and made a part hereof. 2. It is expressly understood and agreed that all monuments have been or will be installed within thirty (30) days after the completion and acceptance of the Improvement Work, and that Subdivider has installed or will install temporary street name signs if permanent street name signs have not been installed. 3 . It is expressly understood and agreed that Subdivider all necessary materials to be furnished and all Work required under the provisions of this contract on or before the second anniversary date of Council the Subdivision Improvement Agreement. will cause Improvement to be done approval of 4. It is understood and agreed that Subdivider will perform said Improvement Work as set forth hereinabove, or that portion of said Improvement Work serving any buildings or structures ready for occupancy in said subdivision, prior to the issuance of any certificate of clearance for utility connections for said buildings or structures in said subdivision, and such certificate shall not be issued until the City Engineer has certified in writing the completion of said public improvements or the portion thereof serving said building or structures approved by the City; provided, however, that the improvement security shall not be required to cover the provisions of this paragraph. 5. It is expressly understood and agreed to by Subdivider that, in the performance of said Improvement Work, Subdivider will conform to and abide by all of the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. 6. Subdivider further agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of FIVE HUNDRED EIGHTY-THREE THOUSAND ONE HUNDRED FOUR DOLLARS AND NO CENTS ($583,104.00) which security shall guarantee the faithful performance of this contract by Subdivider and is attached hereto, marked Exhibit "A" and made a part hereof. -3- b-/Z 7. Subdivider further agrees to furnish and deliver to the City of Chula Vista simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of FIVE HUNDRED EIGHTY-THREE THOUSAND ONE HUNDRED FOUR DOLLARS AND NO CENTS ($583,104.00) to secure the payment of material and labor in connection with the installation of said public improvements, which security is attached hereto, marked Exhibit "B" and made a part hereof and the bond amounts as contained in Exhibit "B", and made a part hereof. 8. Subdivider further agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of TWO THOUSAND FIVE HUNDRED SIXTY DOLLARS AND NO CENTS ($2,560.00) to secure the installation of monuments, which security is attached hereto, marked Exhibit "C" and made a part hereof. 9. It is further agreed that if the Improvement Work is not completed within the time agreed herein, the sums provided by said improvement securities may be used by City for the completion of the Improvement Work within said subdivision in accordance with such specifications herein contained or referred, or at the option of the City, as are approved by the City Council at the time of engaging the work to be performed. Upon certification of completion by the City Engineer and acceptance of said work by City, and after certification by the Director of Finance that all costs hereof are fully paid, the whole amount, or any part thereof not required for payment thereof, may be released to Subdivider or its successors in interest, pursuant to the terms of the improvement security. Subdivider agrees to pay to the City any difference between the total costs incurred to perform the work, including design and administration of construction (including a reasonable allocation of overhead), and any proceeds from the improvement security. 10. It is also expressly agreed and understood by the parties hereto that in no case will the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall any officer, his sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor, except to the limits established by the -4- b-/3 approved improvement security in accordance requirements of the State Subdivision Map Act and the of Title 18 of the Chula Vista Municipal Code. with the provisions 11. It is further understood and agreed by Subdivider that any engineering costs (including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Improvement Work plans and installation of Improvement Work hereinabove provided for, and the cost of street signs and street trees as required by City and approved by the City Engineer shall be paid by Subdivider, and that Subdivider shall deposit, prior to recordation of the Final Map, with City a sum of money sufficient to cover said cost. 12. It is understood and agreed that until such time as all Improvement Work is fully completed and accepted by City, Subdivider will be responsible for the care, maintenance of, and any damage to, the streets, alleys, easements, water and sewer lines within the proposed subdivision. It is further understood and agreed that Subdivider shall guarantee all public improvements for a period of one year from date of final acceptance and correct any and all defects or deficiencies arising during said period as a result of the acts or omission of Subdivider, its agents or employees in the performance of this agreement, and that upon acceptance of the work by City, subdivider shall grant to City, by appropriate conveyance, the public improvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove. 13. It is understood and agreed that City, as indemnitee, or any officer or employee thereof, shall not be liable for any injury to person or property occasioned by reason of the acts or omissions of Subdivider, its agents or employees, or indemnitee, related to this agreement. Subdivider further agrees to protect and hold the City, its officers and employees, harmless from any and all claims, demands, causes of action, liability or loss of any sort, because of or arising out of acts or omissions of Subdivider, its agents or employees, or indemnitee, related to this agreement; provided, however, that the approved improvement security shall not be required to cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of the construction of said subdivision and the public improvements as provided herein. It -5- b -I if shall also extend to damages resulting from diversion of waters, change in the volume of flöw, modification of the velocity of the water, erosion or siltation, or the modification of the point of discharge as the result of the construction and maintenance of drainage systems. The approval of plans providing for any or all of these conditions 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 the construction of the subdivision pursuant to said approved improvement plans. 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 improvements. 14. Subdivider agrees to defend, indemnify, and hold harmless the City or its agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void, or annul, an approval of the City, advisory agency, appeal board, or legislative body concerning a subdivision, which action is brought within the time period provided for in Section 66499.37 of the Government Code of the State of California. 15. Assignability. Upon request of the Subdivider, any or all on-site duties and obligations set forth herein may be assigned to Subdivider's successor in interest if the City Manager in his/her sole discretion determines that such an assignment will not adversely affect the City's interest. The City Manager in his/her sole discretion may, if such assignment is requested, permit a substitution of securities by the successor in interest in place and stead of the original securities described herein so long as such substituted securities meet the criteria for security as set forth elsewhere in this Agreement. Such assignment will be in a form approved by the City Attorney. (NEXT PAGE IS SIGNATURE PAGE) -6- b-/5 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA STANDARD PACIFIC CORP., a Delaware corporation t)~ t k.L Mayor of the City of Chula Vista ATTEST ~œ.t7 '2f-~'7â \T"Aì1\J1':... City Clerk Approved as to form by City Attorney (Attach Notary Acknowledgment) -7- 0-lb CALIFORNIA ALL·PURPOSE ACKNOWLEDGMENT t\< , State of California } ss. I I I- I I- County of San Diego On July 26, 2002 , before me, Cristin Beall, NotaryPublic Name and Title of Officer (e.g.. "Jane Doe. Notary Public") Dale personally appeared Brian Utsler Name{s)ofSigner(s) ~ personally known to me o proved to me on the basis of satisfactory evidence to be the person~ whose name¡¡{¡ is/8I'e subscribed to the within instrument and acknowledged to me that he/shg/they executed the same in his/heFAAeir authorized capacity(~). and that by his/heFitÞleir signature()l) on the instrument the person~. or the entity upon behalf of which the person(lr) acted, executed the instrument. CRIS1IM wu. it Q.... - I..... - ..,....~ - .11 _~.=-c::r.. I- I I I- I I I I I I I WITNES~ and 0 ~ Place Notary Seal AbovB Signature 0 otaryPublic OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. I Description of Attached Document Title or Type of Document: Subdivision Improvement Agreement for Bel1a Sol Document Date: not yet dated 8 Number of Pages: Signer(s) Other Than Named Above: City of Chula Vista Mayor and City Attorney " ¡ Capacity(ies) Claimed by Signer Signer's Name: Rri.:::ln TTt-Ql,:1T" o Individual )¡'f Corporate Officer- Title(s): Authorized Representative o Partner - 0 Limited 0 Generai o Attorney in Fact o Trustee o Guardian or Conservator o Other: Top of thumb here RIGHT THUMRPRINT OF SIGNER Signer Is Representing: Standard Pacific Corp. Cl1999 National Notal}' A88OCiation. 9350 De Solo Ave" P.O_ Box 2402· Chatsworth. CA 91313-2402· www.nalìorl8lnotary.org Prod. No. 5907 Raorder: Call ToIl-Frea 1-800-876-6827 b-/7 LIST OF EXHIBITS Exhibit "A" Improvement Security - Faithful Performance Form: Bond Amount: $583,104.00 Exhibit "B" Improvement Security - Material and Labor: Form: Bond Amount: $583,104.00 Exhibit "C" Improvement Security - Monuments: Form: Bond Amount: $2,560.00 Securities approved as to form and amount by City Attorney Improvement Completion Date: Two (2) years from date of City Council approval of the Subdivision Improvement Agreement. J,\Attorney\SIA\Bella Sol -8- b-12 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NO. 90-07, SUNBOW II, UNITS 12 (PLANNING AREA 11), REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF DESIGN REVIEW COMMITTEE CASE NO. 02-21 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer has executed a Supplemental Subdivision Improvement Agreement which addresses several on-going conditions of the Design Review Committee Case No. 02-21 that remain in effect until the Project is conveyed to the homeowners and the homeowners association. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Supplemental Subdivision Improvement Agreement for Chula Vista Tract No. 90-07, Sunbow II, Unit 12 (Planning Area 11), a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED Chula vista is hereby authorized behalf of the city of Chula vista. that the Mayor of the city of to execute said Agreement on Presented by Approved as to form by ~!!n~ city Attorney John P. Lippitt Director of Public Works J:/attorney/reso/ssia Sunbow II Phase 12 to - r:¡ RECORDING REQUEST BY: ) ) City Clerk ) ) WHEN RECORDED MAIL TO: ) ) CITY OF CHULA VISTA ) 276 Fourth Avenue ) Chula Vista, CA 91910 ) ) No transfer tax is due as this ) is a conveyance to a public ) agency of less than a fee interest) for which no cash consideration ) has been paid or received. ) ) Developer ) ) Above Space for Recorder's Use SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR THE FINAL MAP OF BELLA SOL, SUNBOW II UNIT 12 (PLANNING AREA 11), CHULA VISTA TRACT NO. 90-07. (Condition Numbers 1,2,4,5,6,8,9,15,21, and 28 of Design Review Committee Case No. 02- 21) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this _day of August, 2002, by and between THE CITY OF CHULA VISTA, California ("City") for recording purposes only) and the signator of this Agreement, STANDARD PACIFIC CORP., a Delaware Corporation, ("Developer") with reference to the facts set forth below, which recitals constitute a part ofthis Agreement: RECITALS A. This Agreement concerns and affects certain real Property located in Chula Vista, California, more particularly described on Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is within approved Tentative Subdivision Map Chula Vista Tract 90-07 (Resolution Nos. 15640 and 17177 approved on May 22, 1990 and July 20, 1993, respectively, the "Resolutions"). The Project is commonly known as Bella Sol, Sunbow II Unit 12 (Planning Area II). For purposes of this Agreement the tenn "Project" shall also mean "Property". B. "Owner" or "Developer" means the person, persons or entity having a legal or an equitable interest in the Property or parts thereof and includes Owner's successors-in-interest and assigns of any Property within the boundaries of the Final Map. C. Developer and/or Developer's predecessor in interest, ACI SUNBOW, LLC, a California limited liability company "(AC! Sunbow"), has applied for and the City has approved a b-ZO Tentative Subdivision Map commonly referred to as Chula Vista Tract 90-07 Sunbow II ("Tentative Subdivision Map") for the subdivision of the Property. D. The City has adopted the Resolution Nos. 15640 and 17177 ("Resolutions") pursuant to which it has approved the Tentative Subdivision Map subject to certain conditions as more particularly described in the Resolutions. E. On October 10, 2000, City entered into an agreement with ACI Sunbow entitled: "Supplemental Subdivision Improvement for the Sunbow II Phase 2A Units 8, 9, 10 and 12" adopted pursuant to Resolution No. 2000-351 and recorded in the County Recorder's Office as 2000-0633270 ("Previous Supplemental Agreement"), by which ACI Sunbow agreed to complete certain grading, drainage, landscape and irrigation improvements to the Property and other property which was covered by the Previous Supplemental Agreement recorded against the Property. F. ACI Sunbow sold the Property to Developer on August 24, 2001. Developer desires to assume ACI Sunbow's duties as to the Property that are required under the Previous Supplemental Agreement including construction of all grading, drainage, landscaping, and irrigation improvements within the Property. G. City is willing, on the premises, security, terms and conditions herein contained, to approve the Final Map for which Developer has applied as being in substantial conformance with the Tentative Subdivision Map described in this Agreement. Developer understands that subsequent final maps may be subject to the same security terms and conditions contained herein. H. The City of Chula Vista Design Review Committee approved the Bella Sol condominium project on January 7, 2002, Case No. DRC-02-2l ("DRC-02-2l") and adopted Conditions of Approval attached hereto as Exhibit B and incorporated herein to be satisfied prior to the issuance of building permits for the Project. 1. The following defined terms shall have the mearung set forth herein, unless otherwise specifically indicated: 1. For purposes of this Agreement, "Final Map" means the final map for Bella Sol. 2. "Owner or Developer" means the person, persons or entity having a legal or an equitable interest in the property or parts thereof and includes Owner's successors-in-interest and assigns of any property within the boundaries of the map. This includes Standard Pacific Corp. and any and all owners of real property within the boundaries of the Property, and all signatories to this Agreement. 3. "Production Unit" means residential unit other than a model home unit. 4. "SPA Plan" means the Sunbow II Sectional Planning Area Plan as adopted by the City Council on February 20, 1990 pursuant to Resolution No. 15524 and amended by Sunbow II Village Center SPA Amendment on June 20,2000 by Resolution No. 2000-221. NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein 2 6-21 contained, the parties agree as set forth below. 1. Agreement Applicable to Subsequent Owners. a. Agreement Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property as described on Exhibit "A" until released by the mutual consent of the parties. b. Agreement Runs with the Land. The burden ofthe covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns and any successor in interest thereto. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties public or private, in whose favor and for whose benefit of such covenants running with the land have been provided without regard to whether City has been, remained or are owners of any particular land or interest therein. If such covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this agreement and the covenants may be entitled. c. Developer Release on Guest Builder Assignments. If Developer assigns any portion of the Project to a Guest Builder, Developer may request to be released ITom Developer's obligations under this Agreement, that are expressly assumed by the Guest Builder, provided Developer obtains the prior written consent of the City to such release. Such assignment to the Guest Builder shall, however, be subject to this Agreement and the Burden of this Agreement shall remain a covenant running with the land. The City shall not withhold its consent to any such request for a release so long as the assignee acknowledges that the Burden of the Agreement runs with the land, assumes the obligations of the Developer under this Agreement, and demonstrates, to the satisfaction of the City, its ability to perform its obligations under this Agreement as it relates to the portion of the Project which is being acquired by the Assignee. d. Partial Release of Developer's Assignees. If Developer assigns any portion of the Project subject to the Burden of this Agreement, upon request by the Developer or its assignee, the City shall release the assignee of the Burden of this Agreement as to such assigned portion if such portion has complied with the requirements of this Agreement to the satisfaction of the City and such partial release will not, in the opinion of the City, jeopardize the likelihood that the remainder of the Burden will not be completed. e. Release of Individual Lots. Upon the occurrence of any of the following events, Developer shall, upon receipt of the prior written consent of the City Manager (or Manager's designee), have the right to release any lot(s) ITom Developer's obligation under this Agreement: i. The execution of a purchase agreement for the sale of a production lot to a buyer of an individual housing unit; ii. The conveyance of a lot to a Homeowner's Association; 3 6 --2-2- The City shall not withhold its consent to such release so long as the City finds in good faith that such release will not jeopardize the City's assurance that the obligations set forth in this Agreement will be performed. At the request of the Developer, the City Manager (or Manager's designee) shall execute an instrument drafted by Developer in a recordable form acceptable to the City Manager (or Manager's designee), which confirms the release of such lot or parcel ftom the encumbrance of this Agreement. Notwithstanding the foregoing, at the close of an individual homeowner's escrow on any lot or parcel encumbered by this Agreement, such lot or parcel shall be automatically released ftom the encumbrance hereof. 2. General Condition of Approval. Developer agrees to comply with all conditions of approval of the Sunbow II Master Tentative Map, Chula Vista Tract 90-07, established by the Resolutions and shall remain in compliance with and implement the terms, conditions and provisions of the Sunbow II Sectional Planning Area (SPA) plan, General Development Plan, Planned Community District Regulations, Air Quality hnprovement Plan, Residential Design Guidelines, including landscaping criteria and Public Facilities Financing Plan as may be amended ftom time to time, and as are applicable to the property which is the subject matter of this tentative map, prior to approval of the Final Map, or shall have entered into an agreement with the City, providing the City with security (including recordation of covenants running with the land) and implementation procedures, as the City may require, assuring that after approval of the Final Map, the developer shall continue to comply with, remain in compliance with, and implement such plans. 3. General Condition of Approval. Developer agrees to improve the Project Site as described in the Tentative Map, Chula Vista Tract No. 90-07, DRC-02-21, Sunbow II Final Environmental hnpact Report (FEIR) 88-01, Addendum to Final EIR 88-01and Mitigation Measures. 4. General Condition of Approval. The Developer agrees to comply, implement and remain in compliance with the mitigation measures required by the Sunbow II FEIR 88-1 and the Addendum thereto which are hereby incorporated into this Agreement by reference. All such measures shall be implemented to the satisfaction of the Director of Planning and Building. Mitigation measures shall be monitored pursuant to Mitigation Monitoring and Reporting Program approved in conjunction with Sunbow II FEIR 88-1 and the Addendum thereto. 5. Condition Nos. 1 and 2 (Lighting and Security Plan). In partial satisfaction of Condition Nos. 1 and 2 of DRC-02-21, the Developer agrees to comply with all requirements of the Crime Prevention Unit of the Chula Vista Police Department including scheduling a security evaluation by said Crime Prevention Unit. 'The Developer further agrees to install security hardware as indicated on approved building plans and provide security measures as described in Police Department memorandum to Department of Planning and Building dated October 17, 2001. The security hardware shall be in place prior to final inspection for any production unit. The Developer further agrees to comply with the terms and conditions of the lighting and security plan for the Project. 6. Condition No.4 (Address Numbers). In partial satisfaction of Condition No.4 of 4 0-2.3 DRC-02-21, Developer agrees to provide address nwnbers prior to final inspection for each building which shall be visible from the adjacent private drive. 7. Condition No.5 (Fire Flow). In partial satisfaction of Condition No.5 ofDRC-02- 21, Developer agrees to provide, prior to final inspection, a fire flow for the project based on the largest dwelling unit indicated on the preliminary plans. Fire flow shall be a minimwn of 1500 GPM. 8. Condition No.6 (Potable and Irrigation Water Plans). In partial satisfaction of Condition No.6 ofDRC-02-2l, Developer agrees that prior to issuance of the first building pennit, all plans for potable and irrigation water facilities shall be designed to Otay Water Standard Specifications for water and reclaimed water. 9. Condition No.8 (Code Requirements) In partial satisfaction of Condition No.8 of DRC-02-2l, the Developer agrees to comply with the recommendations of the City Engineer. The Developer shall also pay fees in effect at the time of issuance of building pennits, in accordance with the City Code and Council Policy, including, but not limited to, the following: a) The Transportation and Public Facilities Development Impact Fees. b) Signal Participation Fees. c) All applicable sewer fees, including but not limited to sewer connection fees. d) Interim SR-125 impact fee. e) Telegraph Canyon Sewer 10. Condition No.9 (CC&Rs and BOA Maintenance Areas). In partial satisfaction of Condition No.9 of DRC-02-2l, within 60 days of approval of final map for the production units, the Developer agrees to submit Homeowner Association (HOA) Codes, Covenants and Restrictions (CC&Rs) for approval by the Director of Planning and Building. The CC&Rs shall include the following provisions: a) the City has the right but not the obligation to enforce the CC&R provisions; b) that all common areas and facilities that shall be maintained by the HOA including but not limited to: slopes, playgrounds, parking areas, walkways, driveways, stonn drains, private sewage systems and water lines. The CC&Rs shall also contain language describing the HOA maintenance responsibility for all retaining walls, fences and stonn water quality facilities; c) all exterior (perimeter) walls shall be maintained by the HOA; d) that the HOA shall maintain comprehensive general liability insurance against liability incident to ownership of common areas. In addition: i) the policy shall be acceptable to the City; ii) the City shall be named as an additional insured party to such insurance; iii) the policy shall not contain a cross-party exclusion clause which would abrogate coverage should litigation ensue between insureds. iv) to indemnify and hold the City harmless from any claims, demands, causes of action, liability or loss related to or arising from the maintenance activities of the HOA. 5 b~2'-1 e) that the HOA shall not seek to be released by the City ftom the maintenance obligations described in the CC&R's, or change any of the provisions affecting the City without the prior written consent of the City and 100 percent of the holders of first mortgages or property owners in the HOA. 11. Condition No. 21 (Trash and Recycling Program). In partial satisfaction of Condition No.2l of DRC-02-2l, Developer shall prepare and obtain approval ftom the City's Conservation Coordinator of a comprehensive trash and recycling program prior to issuance of the first building permit for a production unit. In the event that the Conservation Coordinator determines that trash enclosures are required, the Developer shall prepare a revised site plan showing the location of the trash enclosures in relation to the parking, building, walkways, open space, etc. In addition, trash enclosure construction details and a revised site plan shall be resubmitted to the Planning & Building Department for review and approval. 12. Condition No. 28 (Bus Stop Facilities). In partial satisfaction of Condition No. 28 of DRC-02-21, prior to the issuance of the first building permit for the Property, the Developer shall deposit $3,500 with the City of Chula Vista, representing the project's share for bus stop facilities to be installed on Paseo Ladera to serve the proj ect. 13. Notice of Special Taxes and Assessments. The Developer shall ensure that prospective purchasers sign a "Notice of Special Taxes and Assessments" pursuant to Municipal Code Section 5.46.020 regarding projected taxes and ensure that prospective purchasers sign a "Notice of Special Taxes and Assessments" assessments. 14. Growth Management Ordinance. The Developer agrees to comply with Chapter 19.09 of the Chula Vista Municipal Code (Growth Management) as may be amended ftom time to time by the City. Said chapter includes but is not limited to: threshold standards (19.09.04), public facilities finance plan implementation (19.09.090), and public facilities finance plan amendment procedures (19.09.100). Developer further acknowledges and agrees that the City is presently in the process of amending its Growth Management Ordinance to add a proposed Section 19.09.105, . to establish provisions necessary to ensure compliance with adopted threshold standards (particularly traffic) prior to construction of State Route 125. Said provisions will require the demonstration, to the satisfaction of the City Engineer, of sufficient street system capacity to accommodate a proposed development as a prerequisite to final map approval for that development, and the applicant hereby agrees to comply with adopted amendments to the Growth Management Ordinance. 15. NPDES (Best Management Practices). Developer agrees to comply with all applicable regulations established by the United States Environmental Protection Agency as set forth in the National Pollution Discharge Elimination System (NPDES) permit requirements for urban runoff and storm water regulations adopted by the City of Chula Vista pursuant to NPDES regulations or requirements. The Developer further agrees to file a Notice of Intent with the State Water Recourses Control Board to obtain coverage under NPDES General Permit for storm water discharges associated with construction activity and shall implement a Storm Water Pollution Prevention Plan (SWPPP) concurrent with the commencement of grading activities. Developer acknowledges and agrees the SWPPP shall include both construction and post construction pollution prevention and pollution control measures and shall identify funding mechanisms for 6 6 -2[; post construction control measures. Within 60 days of approval of the final map, the Developer further agrees to enter into an agreement with the City to the satisfaction of the City Engineer and in a form as approved by City Attorney, which assures that the Developer, or its successors and assigns, will provide for and conduct ongoing maintenance and inspection of on-site storm water quality management facilities. The agreement shall be a covenant running with the land and shall inure to the benefit of the Property and the City, its successors and assigns and any successor in interest thereto. 16. Unfulfilled Conditions. Developer hereby agrees, unless otherwise conditioned, that Developer shall comply with all unfulfilled conditions of approval of the Tentative Map as they apply to the property, established by the Resolutions and shall remain in compliance with and implement the terms, conditions and provisions therein. 17. Indemnification To defend, indemnify and hold harmless the City and its agents, officers and employees, from any claim, action or proceeding against the City, or its agents, officers or employees, to attack, set aside, void or annul any approval by the City, including approval by its Planning Commission, City Council or any approval by its agents, officers, or employees with regard to this subdivision pursuant to Section 66499.37 of the State Map Act provided the City promptly notifies the Developer of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. 18. Previous Agreements. The Developer acknowledges that nothing III this Agreement shall supersede, or nullify the Previous Supplemental Agreement. 19. Recording. This Agreement, or an abstract hereof, shall be recorded simultaneously with the recordation of the Final Map. 20. Building Permits. Developer and Guest Builders understand and agree that the City may withhold the issuance of building permits for the Project, should the Developer be determined by the City to be in breach of any of the terms of this Agreement, the conditions of DRC-02-2l or the Resolutions. The City shall provide the Developer with written notice of such determination and allow the Developer with reasonable time to cure said breach. 21. Assignability. Upon request of the developer, any or all on-site duties and obligations set forth herein may be assigned to developer's successor in interest if the City Manager in his/her sole discretion determines that such an assignment will not adversely affect the City's interest. The City Manager in hislher sole discretion may, if such assignment is requested, permit a substitution of securities by the successor in interest in place and stead of the original securities described herein so long as such substituted securities meet the criteria for security as set forth elsewhere in this agreement. Such assignment shall be in a form approved by the City Attorney. 22. Miscellaneous. a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have 7 {-r 2" elapsed following deposit in the U.S. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA. 91910 Attn: Director of Public Works DEVELOPER: Standard Pacific Corp. 5750 Fleet Street, Suite 200 Carlsbad, CA 92008 A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph. b. Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its tenns. c. Entire Agreement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. d. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. e. Recitals; Attachments. Any recitals and Attachments set forth above are incorporated by reference into this Agreement. f. Attorneys' Fees. If either party commences litigation for the judicial interpretation, refonnation, enforcement or rescission hereof, the prevailing party will 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. [NEXT PAGE IS PAGE ONE OF TWO SIGNATURE PAGE] J:\Engineer\LANDDEV\Projects\Sunbow\Sunbow PI Area II\FINAL MAP\Bella Sol SSlA fina1.doc 8 b-27 [PAGE ONE OF TWO SIGNATURE PAGES TO THE SUPPLEMENTAL IMPROVEMENT SUBDIVISION AGREEMENT FOR THE FINAL MAP OF BELLA SOL, SUNBOW II UNIT 12 (PLANNING AREA 11) CHULA VISTA TRACT NO. 90-07 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first hereinabove set forth. CITY OF CHULA VISTA Mayor Attest: Susan Bigelow City Clerk Approved as to form John M. Kaheny City Attorney [NEXT PAGE IS PAGE TWO OF TWO SIGNATURE PAGES] 9 b-ZZ [PAGE TWO OF TWO SIGNATURE PAGES TO THE SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR THE FINAL MAP OF BELLA SOL, SUNBOW II UNIT 12 (pLANNING AREA 11) CHULA VISTA TRACT NO. 90-07 DEVELOPERS/OWNERS: Standard Pacific Corp., a Delaware Corporation By: ¥:L ~ Title: ~ ~~UfA1\\Jf: (Attach Notary Acknowledgment) 10 (p -z, 1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT "~,e¢',e('~..&',.c¢~.ø<'Æ(.'Æ<".c<',e('>.øç..e<'£<,..o¢..G¢~~7'. - I State of California County of San Diego } ss. On July 26, 2002 , before me, Date Cristin Beall, NotaryPublic Nama and Title of Officer (e_g., "Jane Doe. Notary Public') personally appeared Brian Utsler Name(s)ofSigner(s) Xi personally known to me o proved to me on the basis of satisfactory evidence I I I' ------------, ~ e CRlmN BEAU.. Cllmmlsslan t 128:t122 i MIllaY P\dc - c:aIIIan*a San DIego COUnty i i _ _ - ~~~~~:~ to be the person(116 whose name¡;S) is/aFe subscribed to the within instrument and acknowledged to me that he/sl:1eltt'9Y executed the same in his/her/tÞleir authorized capacity(~, and that by his/her'tAeir signature~ on the instrument the person~. or the entity upon behalf of which the person~ acted. executed the instrument. ( Place Notary Seal Above WITNES~:t"~~~ OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. I I I Description of Attached Document Title or Type of Document: Agreement Supplemental Subdivision Improvement for Final Map of Bella Sol Document Date: not yet dated Number of Pages: 12 Signer(s) Other Than Named Above: City of Chula Vista Mayor and City Attorney I, I Capacity(ies) Claimed by Signer Signer's Name: Rr;:1n nf"Ql pr o Individual ~ Corporate Officer _ Title(s): Authorized Representative o Partner - 0 Limited 0 General o Attorney in Fact o Trustee o Guardian or Conservator o Other: RIGHT THUMBPRINT OF SIGNER TOp of thumb here Signer Is Representing: Standard Pacific Corp. . -- "1999 Nallonal Notaly Associa1iO/1' 9350 De SolO Ave., P.O. BoK 2402· Chatsworth, CA 91313-2402' ~.natlona oolary.OfQ Prod. No.59Q7 Reorder:CaUTolI·Free 1..aoo-&76-6827 ¿I<' 30 EXHmIT "A" LEGAL DESCRIPTION OF PROPERTY LOT 248 AND A PORTION LOT "W" OF CHULA VISTA TRACT NO. 90-07, SUNBOW II PHASE 2A UNITS 8, 9,10 & 12 IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEROF NO. 14076, FILED IN THE OFFICE OF SAID COUNTY RECORDER ON NOVEMBER 21, 2000. 11 0-3/ EXHIBIT "B" CONDITIONS OF DESIGN REVIEW COMMITTEE, DRC 02-21 12 b" 32.. January 16,2002 Exhibit "B" DRC 02-21: Sunbow Bella Sol- Design Review Committee Conditions of Approval Police & Fire 1. A composite lighting plan shall be submitted and approved to the satisfaction of the Planning & Building Department and Police Department prior to issuance of building permits. The plan shall conform to the design requirements outlined in the SPA. 2. Comply with all requirements of the Crime Prevention Unit of the Chula Vista Police Department. This includes scheduling a security evaluation by Richard Preuss (691- 5127). Security hardware should be indicated on building plans and security measures shall be in place prior to occupancy. Conditions should include all items in Police Department's memo, 3. Provide three fire hydrants as marked on the site plan. Fire hydrant type shall be to the satisfaction of the City's Fire Marshal. 4. Each building in the project shall have address numbers visible ITom the street. 5. Fire flow for the project is based on the largest dwelling unit indicated on the preliminary plans. Fire flow shall be a minimum of 1500 GPM. Public WorkslEngineering 6. All plans for potable and irrigation must be designed to Otay Water Standard Specifications for water and reclaimed water. 7. Obtain a construction permit ITom the Engineering Department to perform any work in the City's right-of-way. 8. Comply with all requirements of the Engineering Department including the payment of all applicable sewer capacity and connection, development impact and traffic signal fees prior to issuance of building permits. Planning Division I Community Planning 9. CC&Rs shall include a plan outlining all common areas to be maintained by HOA including parking, driveway, etc. The CC&Rs shall also contain language maintenance responsibility for all fences. " -33 DRC 02-21 Sunbow Bella Sol January 16,2002 Page 2 10. On-street parking stalls shall be 10 feet x 23 feet. 11. Standard Parking Conditions: Landscape nodes shall be 6 feet wide minimum at end of parking bays and 8 feet minimum between parking stalls. Provide a 12-inch concrete step out area in addition to the 6-inch curb wherever landscape abuts parking stalls. 12. A graffiti resistant treatment shall be specified for all exterior wall surfaces. This shall be noted on the landscape plans. Additionally, the project shall conform to Sections 9.20.055 and 9.20.035 ofC.V.M.C regarding graffiti control. 13. All freestanding and retaining walls shall be decorative type. Specific wall type, color and materials shall be submitted to staff for final review and approval. 14. All screening walls should be 6 feet maximum in height. Neighborhood screen fence exposed to public view shall be painted to compliment the buildings. 15. All exterior (perimeter) walls shall be maintained by the HOA. The HOA shall obtain an access easement for the maintenance of the walls. 16. All fences exposed to open space, right-of-way, internal circulation, parking or any other common area should be decorative type and painted to compliment the buildings. 17. The trash enclosure (one for green waste) shall be constructed of concrete masonry and finishes that relate to the buildings. The enclosure shall utilize a wood trellis attached to the top to serve as a visual screen to the residents at the end of Driveway "B". Green waste enclosure location construction details and finish materials shall be submitted to staff for final review and approval. 18. Reduce standard size parking stall length ITom 19 feet to l71h. feet to allow the planter or walk to serve as wheel stop. Increase planter areas and concrete walks accordingly. 19. The northerly and easterly property line shall be adjusted to the top of slope so that the responsible maintenance entity can maintain the slope in its entirety. Also, it is necessary to provide a 3-foot walk between the top of slope and rear view fence, as shown on the Site Plan/Grading Plan. 20. Add a minimum 8-foot wide x30-foot long landscape median at the main entry to the satisfaction of the Director of Planning & Building. 21. Prepare and obtain approval ITom the City's Conservation Coordinator for a comprehensive trash and recycling program prior to submittal of plans for building plan check. In the event that the Conservation Coordinator determines that trash enclosures are required, the applicant shall prepare a revised site plan showing the location of the trash enclosures in relation to the parking, building, walkways, open ~~-3'-I ORC 02-21 Sunbow Bella Sol January 16,2002 Page 3 space, etc. In addition, trash enclosure construction details and a revised site plan shall be resubmitted to the Planning & Building Department for review and approval. 22. Delete one (1) parking space in front of building 34. 23. Distance from garage-to-garage shall be 35 feet for all buildings, except for buildings 30 and 31, where 30 feet separation is approved. 24. Distance from garage face to open parking stalls shall be 30 feet to m¡rum¡ze vehicular conflict. 25. Driveway aprons shall be 5 feet minimum from the face of building to curb. 26. Indicate on plans the location of trash can 3-foot x 12-foot concrete pad storage. 27. Buildings 2, 31, 33, 34, 36, 38 and 40 shall be the "A" elevations, which contain hipped roofs. 28. Prior to the issuance of the first building permit, the applicant shall deposit $3,500 into a project account determined by the City's Transit Coordinator, representing the project's share for bus stop facilities that would be installed on Paseo Ladera to serve the project. 29. The sidewalk, located west of Driveway "A" (except for buildings 55 and 56) shall be meandering to allow the placement of plant material between the curb and sidewalk. 30. A trellis structure shall be placed near the center of the recreational area to provide immediate shade for one of the picnic table areas. 31. A lighting plan shall be submitted to staff for review and approval. The height shall be a minimum of 12 feet tall, as recommended by the Police Department. The property owner and the applicant shall sign this document indicating that they have each read, understood and agreed to the conditions contained herein, and will implement same. Upon execution, the original document with original signatures shall be returned to the Planning & Building Department. No building permits will be issued or other entitlements approved until the signed original has been received. ,,~% DRC 02-21 Sunbow Bella Sol January 16,2002 Property Owner: By: Standard Pacific Corp., a California Corporation. By: Brian Utsler, Authorized Representative Its: By: Its: J:\PlanningIStanDlDRC Letters- ConditionslSunbow Bella Sol DRC 02-21 Conditions Itr. 16 Jan. 02.doc ~-3h Page 4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ADJUSTMENT IN BOUNDARY OF THE CITY OPEN SPACE LOT A AND AUTHORIZING THE MAYOR TO EXECUTE A QUITCLAIM DEED FOR THE CITY'S PROPERTY WITHIN LOT 1 WHEREAS, the Bella Sol, Sunbow II unit 12 (Planning Area 11) Map realigns the boundary between two lots; and WHEREAS, the net acreage of both lots essentially remains the same, but the adjusted shape of the Condominium lot is better suited to the project; and WHEREAS, the Developer has agreed to have the proposed homeowner association maintain the Project's perimeter wall, which was originally to be maintained by CFD 98-3; and WHEREAS, since the City is signing as an owner on the map and the map does not distinguish which land is owned by each party, quitclaim deeds need to be exchanged so that ownership of the individual lots can be recorded; and WHEREAS, Standard Pacific Corp. (the present owner of the property) will quitclaim its interest in the City open Space Lot A as shown on the final map; and WHEREAS, in order to complete the lot boundary realignment, the city will deed to Standard Pacific Corp. a small portion of Lot W Sunbow Phase 2A (the original City-owned Lot) . NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the adjustment in boundary of the city Open Space Lot A. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized to execute a Quitclaim Deed for that portion of Lot W now contained in the City's property within Lot 1. Presented by Approved as to form by John P. Lippitt Director of Public Works ~ <~jÞ¡J John . aheny City Attorney J:/attorneyfresofSunbow boundary adjust 0~37 Recording Requested by and Please Return /0: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, California 91912 This lnstrumen/ Benefits City Only. No Fee Required. .... This Space for Recorder's Use Only .... APN(s) 641-020-25 C.V. File No.: SB-021F QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION represents that, as the owner of the herein-described real property do hereby remise, release and forever quitclaim to STANDARD PACIFIC CORP., a Delaware corporation, the real property situated in the City of Chula Vista, County of San Diego, State of California described as follows: That portion of Lot "W" of Sunbow Phase 2A, Units 8, 9, 10 & 12 according to map thereof No. 14076 that is within Lot 1 of the final map entitled Chula Vista Tract No. 90-07 Bella Sol - Sunbow according to map thereof No. Signed this day of 20 CITY OF CHULA VISTA Mayor of the City of Chula Vista Attest SUSAN BIGALOW CITY CLERK By: ro~3'E Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, California 91912 This Instrument Benefi/s City Only. No Fee Required. A This Space for Recorder's Use Only .... APN(s) 641-020-25 C.V. File No.: SB-021F QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION represents that, as the owner of the herein-described real property do hereby remise, release and forever quitclaim to STANDARD PACIFIC CORP., a Delaware corporation, the real property situated in the City of Chula Vista, County of San Diego, State of California described as follows: That portion of Lot "W" of Sunbow Phase 2A, Units 8, 9, 10 & 12 according to map thereof No. 14076 that is within Lot 1 of the final map entitled Chula Vista Tract No. 90-07 Bella Sol- Sunbow according to map thereof No. Signed this day of ,20_ CITY OF CHULA VISTA Mayor of the City ofChula Vista Attest SUSAN BIGALOW CITY CLERK By: 0-31 Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, California 91912 This Instrument Benefits City Only. No Fee Required. .... This Space for Recorder's Use Only .... APN(s) 641-020-25 C.V. File No.: SB-02IF QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION represents that, as the owner of the herein-described real property do hereby remise, release and forever quitclaim to STANDARD PACIFIC CORP., a Delaware corporation, the real property situated in the City of Chula Vista, County of San Diego, State of California described as follows: That portion of Lot "w" of Sun bow Phase 2A, Units 8, 9,10 & 12 according to map thereof No. 14076 that is within Lot I of the final map entitled Chula Vista Tract No. 90-07 Bella Sol- Sunbow according to map thereof No. Signed this day of 20 CITY OF CHULA VISTA Mayor of the City ofChula Vista Attest SUSAN BIGALOW CITY CLERK By: to~'fO RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A GRANT OF EASEMENT AND AUTHORIZING THE MAYOR TO EXECUTE A GRANT OF EASEMENT FOR MAINTENANCE PURPOSES OVER CITY OPEN SPACE LOT A WHEREAS, the Bella Sol, Sunbow II Unit 12 (Planning Area 11) Map provides for a perimeter wall for the development; and WHEREAS, the Developer has agreed to have the proposed homeowner association maintain the Project's perimeter wall, which was originally to be maintained by CFD 98-3; and WHEREAS, City is the owner of Lot A and since the perimeter wall is located on the boundary between Lots 1 and A, the future homeowners association will need an access easement over Lot A in order to maintain the wall; and NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the grant of easement for maintenance purposes over city Open Space A to Standard Pacific and its successors and assigns. BE IT FURTHER RESOLVED that the Mayor of the city of Chula vista is hereby authorized to execute a Grant of Easement for Maintenance Purposes over city Open Space Lot A. Presented by Approved as to form by ¡£ ð)JIt ût JO~aheny ~ City Attorney John P. Lippitt Director of Public Works J:fattorney/reso/Sunboweasement ftr t¡ I Recording Requested by and Please Return to: City Clerk City ofChula Vista P.O. Box 1087 Chula Vista, California 91912 This Instrument Benefits City Only. No Fee Required. ... This Space for Recorder's Use Only .... APN(s) 641-020-25 C.V. File No.: SB-021F Grant of Easement for Wall Maintenance FOR A V ALUABLE CONSIDERATION, receipt of which is hereby acknowledged THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION represents that, as the owner of the herein-described real property do hereby grant to STANDARD PACIFIC CORP., a Delaware corporation, its successors and assigns, an easement and right of ingress and egress, and the right to construct, maintain, repair, replace and remove perimeter walls, upon, over, and across that certain real property situated in said City of Chula Vista and more particularly described as follows: See Exhibit "A" attached hereto and made a part hereof Signed this day of 20 CITY OF CHULA VISTA Mayor of the City ofChula Vista Attest SUSAN BIGALOW CITY CLERK By: J:\Engineer\LANDDEV\Forms-Official\Easements\Grant of Easement - from CCV.doc to -4 7.- EXHIBIT "A" LEGAL DESCRIPTION BEING A P RTION OF LOT "A" OF CHULA VISTA TRACT NO. 90-07, BELLA SOL - SUN OW ACCORDING TO MAP THEREOF NO. , RECORDE IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON AUGUST ,2002, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, ST TE OF CALIFORNIA. MORE P ARTICULARL Y DESCRIBED AS FOLLOWS; FOR WALL MAINTENANCE AND ACCESS PURPOSES BEING A STRIP OF L 3.00 FEET IN EVEN WIDTH. THE WESTERLY SIDELINE OF L VING ADJACENT TO AND COINCIEDENT WITH THE COMMON F LOT 1 AND LOT "A" OF SAID MAP. E0 39\1d CONTAINS 0.099 ACRES MORE OR LESS O:IIIB-I7\WpILEOAL DESCRIPTION WALL ESMT LOT A J-7-0~ EH.da<: b-Lf3 WOèllSGNnl 01&511>%19 ¡;Ø ":¿-I-¿øøl:l L0 180-- EXHIBIT -B- II_I 1 OF 1 ~ a ! N ~ LOT -A· SCAlE: 1"=150 cHULA VJBT A TRACT NO. 90~07 eUNBOW PHASE 2A MAP NO. 14078 ~ "v '3) C> ~~ ;~ ~~ ~~ ....¡. ~ > ... ~ !!:- (U. M._ .AI ".-.... CHL!I~ \GTA 11W:T NO. 10-07 .... Á SDl-SUIIOW Y PRIVATE WAlL EASEMENT . 11""7 NJG. II 2002 LUND~:mO ASsoðATE __1101__"'_"" ... ...... ........ .. 81- l0 3Ð\;Id WDè!.lSŒNnl b ~-'Lf 0"[65 LÞ96"[9 l0:l"[ l00l/L0/B0 Recording Requested by and Please Return to: City Clerk City ofChula Vista P.O. Box 1087 Chula Vista, California 91912 This Instrument Benefits City Only No Fee Required. .... This Space for Recorder's Use Only ... APN(s) 641-020-25 C.V. File No.: SB-021F Grant of Easement for Wall Maintenance FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION represents that, as the owner of the herein-described real property do hereby grant to STANDARD PACIFIC CORP., a Delaware corporation, its successors and assigns, an easement and right of ingress and egress, and the right to construct, maintain, repair, replace and remove perimeter walls, upon, over, and across that certain real property situated in said City of Chula Vista and more particularly described as follows: See Exhibit" A" attached hereto and made a part hereof day of 20 Signed this CITY OF CHULA VISTA Mayor of the City of Chula Vista Attest SUSAN BIGALOW CITY CLERK By: J:\Engineer\LANDDEV\Forms-Official\Easements\Grant of Easement - from CCV.doc o ~'4C; EXHIBIT "A" LEGAL DESCRIPTION BEING A P RTION OF LOT "A" OF CHULA VISTA TRACT NO. 90-07, BELLA SOL - SUN OW ACCORDING TO MAP THEREOF NO. , RECORDE - IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON AUGUST ,2002, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, ST IE OF CALIFORNIA., MORE P ARTICULARL Y DESCRIBED AS FOLLOWS; AN EASE T FOR WALL MAINTENANCE AND ACCESS PURPOSES BEING A STRIP OF L 3.00 FEET IN EVEN WIDTH. THE WESTERLY SIDELINE OF LYING ADJACENT TO AND COINCIEDENT WITH THE COMMON F LOT 1 AND LOT "A" OF SAID MAP. CONTAINS 0.099 ACRES MORE OR LESS O:\118-17\WpILEGAL DESCRIPTION WALL ESMT LOT A ~7-1):l EH.do<: b--Lft, E0 38\1d WO~lSaNnl 0165 H% 19 ~0;~1 ~00~!L0!80 ,'---- .-- "<:I "; Q ~"<:I -;~ ~~ ~~ ..... o ~ > LUND~:mO ASSOðATE /:0 3911d EXHIBIT -B- SlETf0F1 LOT "A- ! N ~ i a SCALE: 1"= 150 CHULA YJST A ¡RACT NO. 90~07 SUNBOW PHASE 2A MAP No. 14076 ~ ~ :;.> ~ ...-...--....-- .... DIIGO. ""...... _tA au. CHULA \GTA 1RACT No.. 10-07 ... U SOL-surIlCW 3' PRIVA1E WAU. EASEMENT . 118-17 AlJG. e 2002 (e.e M.__ .AI .ii-H.e 6 -'17 WOèllSŒNnl 01691Þ9519 /:0:/:1 /:00/:IL0/B0 Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, California 91912 This Instrument Benefits City Only No Fee Required. ... This Space for Recorder's Use Only ... APN(s) 641-020-25 C.V. File No.: SB-021F Grant of Easement for Wall Maintenance FOR A VALUABLE CONSIDERATION. receipt of which is hereby acknowledged THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION represents that, as the owner of the herein-described real property do hereby grant to STANDARD PACIFIC CORP., a Delaware corporation, its successors and assigns, an easement and right of ingress and egress, and the right to construct, maintain, repair, replace and remove perimeter walls, upon, over, and across that certain real property situated in said City of Chula Vista and more particularly described as follows: See Exhibit "A" attached hereto and made a part hereof Signed this day of 20 CITY OF CHULA VISTA Mayor ofthe City ofChula Vista Attest SUSAN BIGALOW CITY CLERK By: J:\Engineer\LANDDEV\Forms-Official\Easements\Grant of Easement - from CCV.doc G--4'? EXHIBIT '" A'" LEGAL DESCRIPTION BEING A P RTION OF LOT "A" OF CHULA VISTA TRACT NO. 90-07, BELLA SOL - SUN OW ACCORDING TO MAP THEREOF NO. , RECORDE IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON AUGUST ,2002, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, ST TE OF CALIFORNIA. MORE P ARTlCULARI.. Y DESCRIBED AS FOLLOWS; AN EASE T FOR WALL MAINTENANCE AND ACCESS PURPOSES BEING A STRIP OF L 3.00 FEET IN EVEN WIDTH. THE WESTERLY SIDELINE OF LYING ADJACENT TO AND COINCIEDENT WITH TIlE COMMON F LOT 1 AND LOT "A" OF SAID MAP, E0 39\1d CONTAINS 0.099 ACRES MORE OR LESS 0:\1 lB-17\ WpILEOAL DESÇIlII"T\ON WALL ESMT LOT A ~ 7-117. EH.doé ro - L/-!1 ¡.¡mUSGNnl 016S 1Þ9619 1:0:ž;''¡'Tá01:1 L0/80 ~ -; (\ ~~ -;~ ~~ ~o) ....I. ~ þo LUND~:œO ASSOðATE 1:0 3917d EXHIBIT -B- Slm10F1 LOT -A- ! N ~ ~ a SCALE: 1"=150 CHULA VJBT A -rRACT NO. 90~07 BUNBOW PHAse 2A MAP No. 14078 .... ~ ~ (818)1111__ JA:I "1-1818 CHJLA \GTA 'TRACT NO. SICHJ7 Ø"I t... SQ.-SUlEtlW 3" PRIVAiE WALL EASEWENT . 11e-17 AIJG. 8 2002 6-5"0 -----.-- IIUf DØIIO. "'.....- .-.... ..- WOètlSGNnl 015S1Þ% 19 1:0:1:1 1:001:/L0/80 CITY COUNCIL AGENDA STATEMENT Item 7 Mèeting Date: 8/13/02 ITEM TITLE: Resolution Amending the Retention Agreement with Peggy McCarberg, Esq. for legal services to be performed under the supervision of the City Attorney for fiscal year 2002/2003 SUBMITTED BY: City AttorneY~ 4/5ths Vote: Yes No X BACKGROUND: As in the previous eight years, the City continues to need to provide funding for a part-time contract attorney on a continuing basis to assist with the myriad land use issues facing the City. The City has utilized the services of Ms. McCarberg on an hourly basis for this purpose. It is now necessary to authorize an amendment of the retention agreement for fiscal year 2002/2003. RECOMMENDATION: That Council approve the resolution amending the retention agreement with Peggy McCarberg, Esq. BOARD/COMMISSION RECOMMENDATION: Not Applicable DISCUSSION: For the past eight years, Ms. McCarberg has assisted the Office of the City Attorney on an hourly basis in the preparation of numerous development agreements, planning and engineering documents and other assorted legal documents. The hourly retention agreement needs to be extended for this fiscal year. Ms. McCarberg charges either $95 or $120 per hour depending on the nature of the assignment. The $95 rate will increase by $3 effective September I, 2002. She normally performs 25-30 hours of legal services per week depending upon the needs of the City. FISCAL IMPACT: services was appropriations None, funding for Ms. provided in the City are required. McCarberg and other Attorney's budget. specialized legal No additional J. \lorraine\Al1J\mcarberg - I RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE RETENTION AGREEMENT WITH PEGGY McCARBERG, ESQ. FOR LEGAL SERVICES TO BE PERFORMED UNDER THE SUPERVISION OF THE CITY ATTORNEY FOR FISCAL YEAR 2002/2003 WHEREAS, for the past eight years, Ms. McCarberg has assisted the Office of the city Attorney on an hourly basis in the preparation of numerous development agreements, planning and engineering documents and other assorted legal documents; and WHEREAS, the hourly retention agreement needs to be amended for this fiscal year. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby amend the Retention Agreement with Peggy McCarberg, Esq. for Legal Services to be performed under the supervision of the city Attorney for fiscal year 2002/2003, a copy of which shall be kept on file in the office of the city Clerk. Presented and Approved as to form by ~J::ð John Kaheny, city ~rney J:\attorney\reBo\mccarberg 7-2 cf AGREEMENT FOR LEGAL SERVICES THIS AGREEMENT is entered into this first day of August, 2002, by and between the City of Chula Vista, hereinafter "the CITY") and Peggy J. MCCarberg (hereinafter "ATTORNEY"). RECITALS The following recitals are a substantive part. of this Agreement: ATTORNEY represents she is qualified by virtue of her experience, training, education and expertise to accomplish the services necessary under this Agreement. AGREEMENT THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Term of Agreement. This Agreement shall cover services rendered from the above-referenced date of entry of this Agreement until June 30, 2003. This Agreement shall supersede the Agreement adopted by Council Resolution No. 2001-245 on August 7, 2001. 2. Services to be Provided. The services to be performed by ATTORNEY shall consist of any and all tasks reasonably required to advise, assist and fully represent the CITY in all legal matters presented to ATTORNEY and on any matters in litigation, wherein ATTORNEY is consulted by, or appears on behalf of, the CITY. ATTORNEY'S services shall include, but are not limited to, any and all reasonably required legal representation on behalf of the CITY. 3. Compensation follows: ATTORNEY shall be compensated as 3.1 Amount. The CITY shall compensate ATTORNEY for services rendered at the following hourly rate of $95. OO/hour 7-3 " except on matters identified as developer deposit account funded matters for which ATTORNEY services shall be rendered at $120.00/ hour. Effective rates for the period of July 1, 2002 through August 31, 2002, shall be $95.00/hour and $120.00/hour respectively. Commencing September 1, 2002, those rates shall increase to $98.00/ hour and $120.00/hour respectively. Such hourly compensation shall be the sole and total remuneration for services rendered pursuant to this Agreement. 3.2 Billing. ATTORNEY agrees to invoicing of all billing for services at three months. The invoice shall include rate and basis for calculation of all fees provide detailed a minimum of every the amount, billing and costs. All billing for work performed under this Agreement shall be sent to the following: John Kaheny, city Attorney 276 Fourth Avenue Chula Vista, California, 91910 (619) 691-5037 3.3 Reimbursements for Expenses. accurate records of all costs, travel records shall be made available to the request. ATTORNEY shall keep and expenses. These CITY upon reasonable The CITY will reimburse actual, reasonable and necessary out of pocket expenses incurred by ATTORNEY in performing any services under this Agreement, as follows: a. Parking Fees at the actual amount charged to ATTORNEY. b. Travel/Mileage at the rate allowed by the Internal Revenue Service. Any travel fees incurred outside of San Diego County must be authorized and approved in advance by the CITY. c. ATTORNEY may seek reimbursement for any actual, reasonable and necessary expenses incurred on items not identified above with the prior authorization and approval by the CITY. 2 7-,-/ To obtain reimbursement, ATTORNEY shall submit a summary of expenses, along with all supporting receipts. 4. Insurance. 4.1 Professional Errors and Omissions Insurance. ATTORNEY effect at all Insurance in Attorney. shall obtain and maintain in full force and times Professional Errors and Omissions Liability a reasonable amount acceptable to the City ATTORNEY agrees to immediately notify the CITY in the event that the limits shall fall below the acceptable coverage or if the insurance policies are allowed to lapse and substitute insurance is, or is not, obtained. 4.2 Workers Compensation Insurance. ATTORNEY shall obtain and maintain, if applicable, workers compensation insurance in accordance with Section 3700 of the California Labor Code. 5. City Agent. John M. Kaheny, City Attorney, for the purposes of this Agreement is the Agent for the CITY. Whenever authorization or approval is required, ATTORNEY understands that the City Attorney has the authority to provide the authorization or approval. 6. Independent Contractor. ATTORNEY, and anyone employed by ATTORNEY, are not and shall not be, deemed employees of the CITY. ATTORNEY is solely responsible for the payment of employment taxes, workers compensation taxes, and any other taxes for employees. 7. Conflict of Interest. ATTORNEY represents that she presently has no material financial interest other than that which may be held by the general public and shall not acquire any interest, direct or indirect, in any contract or decision made on behalf of the CITY which may be affected by the services to be performed by ATTORNEY under this Agreement. 3 7-t;; In addition to the proscriptions regarding conflicts of interest imposed on ATTORNEY by the Business and Professions Code and by California Rules of Professional Conduct, ATTORNEY represents that ATTORNEY shall not represent clients before any board, commission, committee or agency of the CITY or represent any client with interests adverse to the CITY. Furthermore, ATTORNEY shall at all times avoid conflicts of interest or the appearance of a conflict of interest in performance of this Agreement. ATTORNEY shall immediately notify the City Attorney of any circumstances, or change of circumstances, that may provide for the potential for a conflict of interest, or actual conflict of interest. 8. Non Liability of Officials/Employees of the CITY. No official or employee of the CITY shall be personally liable for any default or liability under this Agreement. 9. Compliance with Law. ATTORNEY shall comply with all applicable laws, ordinances, codes and regulations of the Federal, State and local governments. In addition, ATTORNEY agrees to abide by all ethical and moral standards as represented by the Rules of Professional Conduct as applied to the California state Bar. 10. Work Product. All documents, or other information developed or received, by ATTORNEY shall be the property of the CITY. ATTORNEY shall provide the CITY with copies of items upon reasonable demand or upon termination of this Agreement. 11. Notices. All notice shall be personally delivered or mailed, via first class mail, to the below listed address. In addition, such addresses shall be used for delivery for service of process. ATTORNEY agrees to notify the CITY within ten (10) days of the date of any change of address and agrees to keep an updated address with the applicable courts on any matters that ATTORNEY is representing the CITY. a. Address of ATTORNEY is as follows: 4 7-b Peggy J. McCarberg, Esq. 613 West Valley Parkway, Ste. 345 Escondido, CA 92025 b. Address of CITY is as follows: John M. Kaheny, Esq. CITY ATTORNEY 276 Fourth Avenue Chula Vista, CA 91910 12. Default/Termination of Agreement. CITY Agreement notice. and ATTORNEY shall have the right to terminate this without cause by giving thirty (30) days written 13 . Limitations Upon Assignment/Subcontracting. ATTORNEY agrees that no portion of her performance or services rendered under this Agreement shall be assigned by ATTORNEY or subcontracted to any other without prior written authorization and approval of the CITY. 14. Non-Discrimination. ATTORNEY covenants there shall be no discrimination based upon race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement. 15. Time of Essence. Time is of the essence in the performance of this Agreement. 16. Entire Agreement. This Agreement represents the Parties' final and mutual understanding. This Agreement supersedes any previous Agreements, oral or written. 17. Modification. This Agreement shall not be modified or replaced except by another signed, written Agreement, properly executed by the parties. 5 7~7 18. Waiver. The waiver of any breach or any provision of this Agreement does not waive any other breach of that term, or any other term, in this Agreement. 19. Partial Invalidity. If any part of this Agreement is found for any reason to be unenforceable, all other parts nonetheless shall remain in force. 20. Governing Law. This Agreement shall be interpreted and construed in accordance with the laws of the State of California. 21. Interpretation. This Agreement shall be interpreted as though prepared by both parties. 22. Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating responsibility or liability between the CITY and ATTORNEY survive the termination of this Agreement. 23. Attorneys' fees. If a party brings an action, including an action for declaratory relief, to enforce or to interpret the provisions of this Agreement, the prevailing party is entitled to reasonable attorneys' fees and costs in addition to any other relief to which the party may be entitled. Such fees may be set by the court in the same action or in a separate action brought for that purpose. [NEXT PAGE IS SIGNATURE PAGE] 6 7-F [SIGNATURE PAGE TO AGREEMENT FOR LEGAL SERVICES AGREEMENT] IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below. Date: CITY OF CHULA VISTA By: John M. Kaheny City Attorney Date: ATTEST: By: City Clerk Date: PEGGY J. MCCARBERG ByÆ~toy\(C~- P J. McCarbe g APPROVED AS TO FORM: ~ k. y£-' M. Kaheny ~ ty Attorney J:/attorneyjagree/Mccarberg 7 7-Cj COUNCIL AGENDA STATEMENT Item 4 Meeting Date 08/13/02 ITEM TITLE: Resolution Approving the Memorandum of Understanding between the City of Chula Vista and Lauderbach Elementary School regarding provision of library/research skills instruction to 4th through 6th grade students, accepting $5,350 from the school, appropriating the unanticipated revenue, amending the FY2002-03 Library budget, and authorizing the City Manager to execute said MOU Deputy City Manager palme~ /'IL .... REVIEWED BY: CityManager~fl>\ (4/5thsVote: Yes---L- No-> For a second year, Lauderbach Elementary School has asked the Library to provide Library/Research skills instruction to 4th through 6th graders during class visits, outside of what the Library nonnally provides schools during class visits. Additional costs would be incurred by the Library to conduct this specialized program at the South Chula Vista branch library. The two staffs have reached agreement on how this service could be provided at a cost of $5,350 to the School. The attached Memorandum of Understanding (MOU) outlines the tenns and conditions under which this program will be conducted this fiscal year. SUBMITTED BY: RECOMMENDATION: That Council adopt the resolution approving a Memorandum of Understanding between the City of Chula Vista and Lauderbach Elementary School for the provision of Library/Research skills instruction, appropriating $5,350, amending the FY2002-03 budget, and authorizing the City Manager to execute the MOU. BOARDS/COMMISSION: N/A. DISCUSSION: Currently the Chula Vista Public Library offers the opportunity for elementary school classes to visit the Civic Center and South Chula Vista Branch Libraries during regular operating hours (Elementary classes cannot visit the EastLake Branch during the school day as it is in use as a High School Library.) The class visits generally consist of an activity appropriate to the grade level visiting and instruction on the use ofthe Library Catalog and specialized infonnation resources. In October 2001 Lauderbach Elementary School and the South Chula Vista Branch Library created a program of special weekly class visits for 4th _6th graders to teach them library/ research skills. Because the Library was unable to accommodate the requested schedule due to the anticipated demand for class visits from other neighborhood schools in the Library's service area (Otay, Montgomery, Lorna Verde, Harborside to name a few) it was agreed that Lauderbach School pay for the staffing and associated costs ($4800) of offering class visits prior to regular library hours. The School and Library collaborated on creating a curriculum for library/research skills instruction that was be delivered over II weeks, and met State standards. '5'-/ Page 2, Item Í- Meeting Date 08/13/02 It is proposed that the School and the Library continue with this program for the fiscal year 2002-03 at a cost of $5,350, beginning August 19,2002 and ending February 25, 2003. Some improvements to the program will be made, based on last year's experience. There will be 17 weeks of classes instead of II. On Mondays two classes will be conducted and on Tuesdays three classes will be conducted. The first class will begin while the library is closed and the later classes will begin after the library is opened. The classes will be one hour long instead ofthe 35 minutes allotted last year, and will include 15 minutes provided for materials checkout. Lauderbach students in Kindergarten through 3'd grade will still be able to visit the library as scheduled by their teachers on a monthly or bi-monthly basis during regular library hours. It is recommended that Council approve the MOD between the City and the School for this very successful program. FISCAL IMPACT: The Library will hire two hourly Library Associates to assist the Children's Librarian in providing instruction to the students at the South Chula Vista branch library for 6.5 hours per week for 17 weeks, at a cost of $4,002. In addition an hourly Librarian I will be hired to backfill for the full-time staff involved in training and class preparation time at a cost of $471. The remaining $877 will be used for student incentives, supplies, and printing. The total cost of $5,350 will be paid by Lauderbach School. Attachment: A. MOD between the Chula Vista Public Library and Lauderbach Elementary School File: Al13LAUDERBACH SCHOOL.DOC 8-2- RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND LAUDERBACH ELEMENTARY SCHOOL REGARDING PROVISION OF LIBRARYIRESEARCH SKILLS INSTRUCTION TO 4TH THROUGH 6TH GRADE STUDENTS, ACCEPTING $5,350 FROM THE SCHOOL, APPROPRIATING THE UNANTICIPATED REVENUE, AMENDING THE FY 2002-03 LIBRARY BUDGET, AND AUTHORIZING THE CITY MANAGER TO EXECUTE SAID MOU WHEREAS, for a second year, Lauderbach Elementary School approached the Library to provide Library/Research skills instruction to 4th through 6th graders during class visits, outside of what the Library normally provides school during class visits; and WHEREAS, additional costs would be incurred by the Library to conduct this specialized program at the South Chula Vista branch library; and WHEREAS, the two staffs have reached agreement on how this service could be provided, mostly outside of regular Library hours, at a cost of $5,350 to the School; and WHEREAS, the Memorandum of Understanding (MOU), outlines the terms and conditions under which this program will be conducted this fiscal year. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Memorandum of Understanding, as set forth in Attachment "A", between the City of Chula Vista and the Lauderbach Elementary School District regarding provision of Library/Research Skills instruction to 4th through 6th grade students. BE IT FURTHER RESOLVED that the City of Chula Vista does hereby accept the $5,350 from the School, appropriate the unanticipated revenue, and amend the FY2002-03 Library budget. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to execute said MOO. Presented by Approved as to form by t::ð r( David Palmer Deputy City Manager J:\Attorney\Reso\Lauderbach MOU f'-3 MEMORANDUM OF UNDERSTANDING Page I of2 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND LAUDERBACHELEMENTARYSCHOOL This MOD is entered into by the City Manager on behalf of the City ofChula Vista, and the Principal of Lauderbach Elementary School, on behalf of the Chula Vista Elementary School District. This is an agreement to provide LibraryIResearch Skills instruction to 4th through 6th grade students from Lauderbach School during class visits to the South Chula Vista Branch Library for 17 weeks between August 2002 and February 2003. The parties agree that Lauderbach Elementary School's responsibilities shall be to: );> Provide a staff liaison with the Library as a key contact who will assist in the development of the Library/Research skills curriculum to meet the state standards and assist in the coordination of the program with the Children's Librarian. );> Facilitate communication of the LibraryIResearch Skills instruction program goals to the teachers and students participating in the training. );> Promote cooperation and coordination between Lauderbach School personnel and Library personnel. );> Coordinate class visit schedules and transportation to the Library for participating classes. );> Provide a minimum of two support supervisors for each class visit. );> Provide the Library with $5,300 by August 16, 2002 towards the cost of operating the Library/Research Skills instruction program for Lauderbach School. The parties agree that the Chula Vista Public Library's responsibilities shall be to: );> Provide a Children's Librarian as a key contact to oversee and coordinate the Library/Research Skills instruction in coordination with Lauderbach key contact. );> Facilitate communication of the LibraryIResearch Skills instruction program goals to Library personnel. );> Promote cooperation and coordination between Library personnel and Lauderbach . ~~4 MEMORANDUM OF UNDERSTANDING Page 2 of2 );> Develop and adapt existing curriculum for the Library /Research Skills instruction, translation into Spanish where appropriate, in cooperation with the Lauderbach School key contact. );> Provide Library /Research Skills instruction utilizing two paid Library staff for five 1 hour classes per week for 17 weeks beginning August 19 and ending February 25 on Mondays 10:00 -1 2:00am and Tuesdays 9:00-12:00am part of which time the library will closed to the public (9:00-1O:00am). If there is an increase in enrollment in any grade the additional class will be added Monday at 9:00am. Please see Attachment "A" for a list of dates and times. In case of illness or other emergency, the class visits will be rescheduled upon a mutually agreed upon time between the Chula Vista Public Library and Lauderbach School. );> Apply the $5,300 toward funding paid Library staff to support and conduct the Library/Research Skills instruction. The cost of the program shall not exceed $5,300. The parties further agree to hold harmless each other against any and all claims asserted or liability established for damages or injuries, including death, to any person or property, including an officer, agent or employee of one of the parties, which arise from or are connected with or are caused by the negligent acts or omissions of the School or the Library in carrying out the terms of the agreement; provided, however, that no duty to hold harmless one party shall arise or exist regarding the established sole negligence or willful misconduct of that party. LADDERBACHELEMENTARY SCHOOL CITY OF CHULA VISTA BY:çU/~~ Date: ~/ s-;/o-< By: Date: 8-5 Attachment "A" Chula Vista Public Library Visit Schedule For Lauderbach Elementary School 4th to 6th Grade Teachers' Schedule Dates: ff' Grade Classes Monday, August 19 Monday, August 26 Monday, September 9 Monday, September 16 4'h Grade CÚlSses Monday, October 21 Monday, October 28 Monday, November 4 Monday, November 18 Monday, November 25 Monday, December 2 :;D' Grade Classes Monday, January 27 Monday, February 3 Monday, February 10 Monday, February 24 Tuesday, August 20 Tuesday, August 27 Tuesday, September 3 Tuesday, September 10 Tuesday, September 17 Wednesday, September 4 Tuesday, October 22 Tuesday, October 29 Tuesday, November 5 Tuesday, November 12 Tuesday, November 19 Tuesday, November 26 Tuesday, December 3 Wednesday, November 13 Tuesday, January 28 Tuesday, February 4 Tuesday, February 11 Tuesday, February 18 Tuesday, February 25 Wednesday, February 19 ð -C:, COUNCIL AGENDA STATEMENT Item: q Meeting Date: 8/13/02 ITEM TITLE: ORDINANCE Chula Vista Ordinance) SUBMITTED BY: Chief of POliC~~ ~t- REVIEWED BY: City Manager~ v'f" (4/5ths Vote: Yes_ No l) RECOMMENDATION: That Council amend Chapter 9.20, Sections 9.20.020 and 9.20.050, of the Chula Vista Municipal Code Regarding Property Defacement. Amending Chapter 9.20 of the Municipal Code (Property Defacement BOARDS/COMMISSIONS RECOMMENDATION: N/A Background: The City of Chula Vista has been experiencing a new form of graffiti vandalism known as "acid etching." Acid etching involves the use of a corrosive substance of fluoride compounds, sulfuric acid and barium sulfate. The acid is typically applied utilizing liquid shoe polish applicators, with white polish being the color of choice as white is highly visible on glass surfaces. The damage that acid graffiti causes is permanent. Within the past several months, acid etching vandalism has caused thousands of dollars worth of damage to sixteen different Chula Vista businesses. Because of the permanent damage acid etching causes, and the cost associated with the replacement of damaged windows, acid etching is often left visible for prolonged periods of time before being replaced. This form of vandalism in turn can attract additional graffiti. Discussion: In addition to its legal uses, glass etching products are used for illegal purposes of defacing glass and plastic surfaces on public and private property in the City of Chula Vista. There is a public safety issue associated with the illegal use of glass etching products to deface public and private property. The acid solution may cause eye and skin burns if exposed, as well as respiratory tract irritation C¡ -I Page 2 Meeting Date '7 8/13/02 and permanent damage to the lungs. There are also dangers with low-level long- term exposure. The amended ordinance adds "Glass Etching Product" to the definition of covered and controlled graffiti implements. Due to the increased use of glass etching products to deface public and private property, additional measures to combat the illegal use of these products is required. The reasonable limitations found in this Ordinance on the use, possession, and sale of glass etching products will assist the City of Chula Vista in its efforts to combat illegal uses of glass etching products in the City, and will not unduly restrict legitimate businesses or customers from selling or buying these products. In preparation of the amendment, staff discovered that section 9.20.050 contained language that was inconsistent regarding the description of graffiti tools in associated sections. The proper terminology in defining instruments commonly used as graffiti tools is "graffiti implements." These implements are defined under City Ordinance 9.20, Property Defacement. In order to remain consist when describing tools used to cause graffiti damage, such terminology will be known as "graffiti implements." PROPERTY DEFACEMENT SECTION 9.20.020 "DEFINITIONS" MODIFICATIONS: The following is the text of the proposed modifications in an underline/strike-out format. 9.20.020 Definitions. A. As used in this section, "graffiti" includes any inscription, word, figure, or design that is marked, etched, scratched, drawn, painted, pasted or otherwise affixed to or on any surface, regardless of the nature of the material of that structural component, to the extent that same was not authorized in advance by the owner thereof, or, despite advance authorization, is otherwise deemed by the council to be a public nuisance. B. "Aerosol paint container" means any aerosol container, regardless of the material from which it is made, which is adapted or made for the purpose of spraying paint or other substances capable of defacing property. C. "Felt tip marker" means any indelible marker or similar implement with a tip which, at its broadest width, is greater than one-eight inch, containing an ink that is not water-soluble. q-2- ~_.- --'--'-~"--'-"~--~--" _._._~_._--_..,-_... ._-, -'~"- Page 3 Meeting Date 8/13/02 D. "Graffiti stick" means a device containing a solid form of paint, chalk, wax, epoxy, or other similar substance capable of being applied to a surface by pressure, and upon application, leaving a mark at least one-eight of an inch in width, visible from a distance of 20 feet, and not water soluble. E. "Cr~ffiti implcfficnt" mCùns ;:m ¡¡cr-osol p¡¡int container, ¡¡ felt tip ffi~rkcr, or a gr~ffiti stick. "Glass etchinq products" means any product which can be used to permanentlY alter a qlass surface. including but not limited to such products that contain hydrofluoric acid ammonium bifluoride and sulfuric acid, or sodium bifluoride. F. "Graffiti implement" means an aerosol paint container, a felt tip marker, a qraffiti stick, or qlass etchinq products. PROPERTY DEFACEMENT SECTION 9.20.050 "ACCESSIBILITY TO GRAFFITI IMPLEMENTS" MODIFICATIONS: The following is the text of the proposed modifications in an underline/strike-out format. 9.20.50 Accessibility to graffiti implements. A. Furnishing to Minors Prohibited. It shall be unlawful for any person, other than a parent or legal guardian, to sell, exchange, give, loan, or otherwise furnish, or cause to permit to be exchanged, given, loaned, or otherwise furnished, any f-elt tip marker or graffiti stick qraffiti implement to any person under the age of 18 years without the consent of the parent or other lawfully designated custodian of the person, which custodial consent shall be given in advance in writing, The above amendment in this section is being made to maintain language consistent with Section 9.20.020 "Definitions" of this Ordinance. Fiscal Impact: There would be no costs associated with this ordinance and it would have no negative impact on the General Fund. q-3 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 9.20 OF THE CHULA VISTA MUNICIPAL CODE TO INCLUDE LANGUAGE RELATING TO REGULATION OF THE USE, POSSESSION AND SALE OF GLASS ETCHING PRODUCTS WHEREAS, glass etching products, sold in craft and home improvement stores, have legitimate uses including decorative arts; and WHEREAS, in addition to their legitimate uses, glass etching products are being used for illegal purposes, including for the purpose of permanently defacing glass and plastic surfaces on public and private property within the City of Chula Vista; and WHEREAS, such glass etching products are also known to be dangerous if handled improperly; and WHEREAS, the use of glass etching products for illegal purposes is dangerous and damaging to public and private property, and contributes to appearances of blight in the commercial areas of the City; and WHEREAS, unrestricted retail access to graffiti materials, including glass etching products, contributes to the incidence of graffiti in the City; and WHEREAS, reasonable limitations on the possession, use and sale of glass etching products will not unreasonably restrict legitimate businesses or customers from selling or purchasing the product in a lawful manner; and WHEREAS, to remain consistent when describing tools used to cause graffiti damage such terminology will be known as graffiti implements. The City Council of the City of Chula Vista does ordain as follows: SECTION I: That Section 9.20.020 and Section 9.20.050 of Chapter 9.20 of the Chula Vista Municipal Code are hereby amended to read as follows: q-L/ 9.20.020 Definitions. A. As used in this section, "graffiti" includes any inscription, word, figure, or design that is marked, etched, scratched, drawn, painted, pasted or otherwise affixed to or on any surface, regardless of the nature of the material of that structural component, to the extent that same was not authorized in advance by the owner thereof, or, despite advance authorization, is otherwise deemed by the council to be a public nuisance. B. "Aerosol paint container" means any aerosol container, regardless of the material from which it is made, which is adapted or made for the purpose of spraying paint or other substances capable of defacing property. C. "Felt tip marker" means any indelible marker or similar implement with a tip which, at its broadest width, is greater than one-eight inch, containing an ink that is not water-soluble. D. "Graffiti stick" means a device containing a solid form of paint, chalk, wax, epoxy, or other similar substance capable of being applied to a surface by pressure, and upon application, leaving a mark at least one-eight of an inch in width, visible from a distance of 20 feet, and not water soluble. E. "Graffiti iFR¡:¡loment" means an aemsel paint container, a felt tip marker, or a graffiti stick. "Glass etchinq products" means any product which can be used to permanently alter a qlass surface, includinq but not limited to such products that contain hydrofluoric acid ammonium bifluoride and sulfuric acid, or sodium bifluoride. F. "Graffiti implement" means an aerosol paint container, a felt tip marker, a graffiti stick, or glass etching products. 9.20.050 Accessibility to graffiti implements. A. Furnishing to Minors Prohibited. It shall be unlawful for any person, other than a parent or legal guardian, to sell, exchange, give, loan, or otherwise furnish, or cause to permit to be exchanged, given, loaned, or otherwise furnished, any felt tip markor or graffiti stick qraffiti implement to any person under the age of 18 years without the consent of the parent or other lawfully designated custodian of the person, which custodial consent shall be given in advance in writing, Section II: This ordinance shall take effect and be in full force on the thirtieth day from and after its second reading and adoption. Presented by Approved as to form by 11~ F"cf2: Richard Emerson, Chief of Police q-EJ COUNCIL AGENDA STATEMENT Item ~'~ Meeting Date 08/13/02 ITEM TITLE: Resolution Approving the creation of a Funds Development/Strategic Plan Manager classification in the Unclassified Service. Senior Management Group: amending the FY03 Budget for the Library to appropriate $33.300 based on $24.500 in unanticipated reimbursements and $8.800 from the General Fund Available Fund Balance; and transferring $59.785 from various department operating budgets SUBMITTED BY: Deputy City Manager Palmer ~ ~ REVIEWED BY: City Manager ~ 9~b/ (4/Sth Vote: Yes. X No__) Council is being asked to transfer $101.000 from various departments operating budgets, amend the FY2002-03 budget and add a Funds Development/Strategic Plan Manager position. Although the position will be assigned to Libraty administration, the position will be available to all City departments. RECOMMENDATION: That the City Council adopt the resolution to amend the FY03 Budget to appropriate $33,300 based on $24,500 in unanticipated reimbursements and $8,800 from the General Fund Available Fund Balance; transfer $59,785 from various department operating budgets; and add a Funds Development/Strategic Plan Manager position in Library administration. BO.MID/COMMISSION RECOMMENDATION: N/A DISCUSSION: Position: Funds Development/Strategic Plan Manager (Senior Management) Department: Library Administration Recommendation: Create a new classification of Funds Development/Strategic Plan Manager. Salary placement at $88,958 (E). Discussion: This position is intended to design and conduct ongoing philanthropic fund development pro,ams for the City of Chula Vista; conduct/facilitate strategic planning processes for the City, its departmems and divisions and assist in the development and prioritization of specific program and management goals and objectives. The duties of this position will be split between fundraising and strategic planning as outlined below: Fundraising The Librat3, has contracted for fundraising consultant services since FY 1997-98, while the Nature Center has done so since FY 2000-01. During the past two fiscal years, the two departments have Page 2, Item / ~ Meeting Date 08/13/02 both contracted with the Alford Group. for a total cost of $80.000. During that same time period, combined donations to the Nature Center and Library have topped $400,000, for a return of $5 for every dollar spent. 1 Staff has long believed that the donation levels could be even higher if the City had a permanent fundraiser on board. During the past 'two years, there has not been enough money available lo contract for everything the Library, and Nature Center has wished to accomplish. For example, the consultants have not been able lo provide mid-management staff training on philanthropy, pursue philanthropic grants, nor write and edit newsletter and brochure copy. Most importantly, resources were not available to allow the consultants to personally solicit donations on behalf of the departments. A permanent Funds Development/Strategic Plan Manager will also be able to assist other departments with their fund raising endeavors. The Recreation Department is especially eager to embark on this effort to support both capital and operational demands. However, they first need an overall fund development plan. Appropriate collateral materials such as brochures and donor recognition systems must also be designed. The same holds true for Public Works Operations, where fund raising could be used to help pay for park amenities. Finally, the Funds Development/Strategic Plan Manager will also be available to plan and coordinate major capitfil fund raising campaigns. As the City provides more public facilities, donations will need to be raised in order to pay for the "extras" the residents want and deserve. Projects where ftmdraising will play an important role include the Rancho del Rey Branch Library and any potential community cultural arts facility. Stralegic Planning The Funds Development/Strategic Plan Manager will also conduct and facilitate the strategic planning processes for the City, its departments and divisions. The City is committed to conducting such long-range plans as a good management practice. Although some individual departments have recently completed strategic plans, there has not been a ciD'wide plan prepared since Chula Vista 2000 in 1990 and Chula Vista 21 in 1993. This new' position will begin preparing for a new citywide plan inmaediately, with the goal of conducting the strategic planning process in 2003. This pre- planning will include working with the City Council on the identification of key issues, working with the Planning and Building and Community Development Departments to understand how to best utilize and incorporate the information coming from the ongoing General Plan update and the Economic Development Strategy. initiative. They will also coordinate these pre-planning efforts with other departments and offices within the City as appropriate. The proposed Funds Development/Strategic Plan Manager will also coordinate and conduct strategic planning for individual City departments. In this fiscal year, the new Manager will immediately begin working with the Recreation and Community Development Department's on their long-range I This figure does not include donations to the Libra~ from the Friends of the Library, donations to Literacy or Afterschool programs, or in-kind donations. Page 3, Item ] ? Meeting Date 08/13/02 service plans. These will be large-scale, public endeavors that will include the establishment of Steering Committees as well as numerous sub-committees made up of various stakeholders. Both plans will take approximately one year to complete. Finally, this position will be in place to assist with the updating of plans that already exist, such as in the Police and Library Departments. Out of these efforts will eventually emerge a coordinated, prioritized, five to ten year plan of service for the community and city governmen! - a public service plan which is in sync with the General Plan and economic development goals. These efforts will provide City Council with the strategies necessary to successfully fulfill its vision and mission of making Chula Vista the finest community in San Diego County. Salary placement for this position will be internally aligned to the Administrative Services Manager at $88,958. Fiscal Impact: The cost of the proposed position for the remainder of the fiscal year is $93,085; $84,285 for personnel services and $8800 for office and computer equipment. This expense will be offset through reductions of $59,785 in the supply and service budgets of various departments and RDA reimbursements to the General Fund totaling $24,500, resulting in a net cost of $8800. RDA appropriations are not needed as RDA monies were set aside in the budget for professional services for strategic plan development and these appropriations will be used to reimburse staff for the work being performed in-house. The specific budget adjustments and appropriations needed are shown below: General Fund Appropriation Total Appropriations Funding Library personnel services $84,285 Library Capital 8.800 Total Costs $93,085 Less Budget Reductions: Library supplies & services $3,285 Recreation supplies & services 27,000 Nature Center supplies & services 25,000 Community Development supplies & sen'ices 4.500 Total Budget Reductions $59,785 RDA Reimbursements $24,500 Total Available Funding $83,285 Net General Fund Impact $8,800 In addition $20,000 will be transferred from Bayfront RDA supplies and services budget to other expenses to fund the RDA reimbursement to the General Fund. Page 4, Item Meeting Date 08/13/02 The necessary supplies and services related to this position and its functions are being absorbed in the Library Department's budget in the current year and as an ongoing expense. The ongoing cost of the position is estimated at $110,878. which will be offset by a permanent transfer of $27,866 from the Library and Nature Center budgets previously allocated for fundraising consultant services. This will fund approximately 25% of the position. One half of the Funds Development/Strategic Plan Manager's time will be allocated to fundraising. Once the position is filled, staff will develop a ciLywide fundraising plan with the expectation that sufficient donation revenues will be raised to fund a significant portion of the costs for FY 2003-04 and beyond. The other 50% of the job will be devoted to Strategic Planning. As a result, this position will ensure that the City does not need to hire additional consultants for departmental or citywide strategic planning purposes. Therefore, there is future cost avoidance to the Ci~,. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CREATION OF A FUNDS DEVELOPMENT/STRATEGIC PLAN MANAGER CLASSIFI- CATION IN THE UNCLASSIFIED SERVICE, SENIOR MANAGEMENT GROUP; AMENDING THE FY03 BUDGET FOR THE LIBRARY TO APPROPRIATE $33,300 BASED ON $24,500 IN UNANTICIPATED REIMBURSEMENTS AND $8,800 FROM THE GENERAL FUND AVAILABLE FUND BALANCE; AND TRANSFERRING $59,785 FROM VARIOUS DEPARTMENT OPERATING BUDGETS WHEREAS, the position of Funds Development/Strategic Plan Manager is intended to design and conduct ongoing philanthropic fund development programs for the City of Chula Vista; conduct/facilitate strategic planning processes for the City, its departments and divisions and assist in the development and prioritization of specific program and management goals and objectives; and WHEREAS, the duties ofthis position will be split between fundraising and strategic planning; and WHEREAS, the position will also assist other departments with their fundraising endeavors and will be available to plan and coordinate major capital funding raising campaigns; and WHEREAS, salary placement for this position will be internally aligned to the Administrative Services Manager at $88,958. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the creation of a Funds Development/Strategic Plan Manager classification in the Unclassified Service, Senior Management Group. BE IT FURTHER RESOLVED that the FY03 budget is hereby amended for the Library to appropriate $33,300 based on $24,500 in unanticipated reimbursements and $8,800 from the General Fund available fund balance and transfer $59,785 from various department operating budgets. Presented by Approved as to form by David Palmer Deputy City Manager J:lattorney/reso/funds dev plan mgr J . Kaheny lty Attorney /0-5 CITY COUNCIL AGENDA STATEMENT Item: I I Meeting Date: 08/13/02 ITEM TITLE: PUBLIC HEARING: PCM-02-24, consideration of amendments to the EastLake I~ Sectional Planning Area (SPA) Plan, Otay Ranch Village Six Sectional Planning Area (SPA) Plan, and Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan, to incorporate Section 11.7 Air Quality hnprovement Plan into each o£the Sectional Planning Area (SPA) Plans. Resolution o£ the City Council o£ the City of Chula Vista approving an amendment to the EastLake m Sectional Planning Area (SPA) plan to incorporate Section 1].7 Air Quality Improvement Plan. Resolution of the City Council o£ the City o£ Chula Vista approving an amendment to the Otay Ranch Village Six Sectional Planning Area (SPA) plan to incorporate Section I].7 Air Quality Improvement Plan. Resolution of the City Council o£ the City o£ Chula Vista approving an amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) plan to incorporate Section H.7 Air Quality Improvement Plan. SUBMITTED BY: Director of Planning and Building ~///~ REVIEWED BY: City Manager6~ (4/5th Vote: Yes No X_) Staff is requesting amendments to the Eastlake HI Sectional Planning Area (SPA) Plan, the Otay Ranch Village Six Sectional Planning Area (SPA) Plan, and the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan to incorporate Air Quality Improvement Plans into each of the Sectional Planning Area (SPA) Plans as mandated by the City's Growth Management Ordinance. The developers of the three Planning Areas, in order to meet the Sectional Planning Area (SPA) content requirements, agreed to participate in a pilot program to study and evaluate air quality and energy conservation measures in their projects. In March 2001, the City retained a consultant to prepare a computer model, related reports and analyses of air quality and energy conservation measures in order to evaluate the three SPA projects. The scope of work also included the preparation of individual Air Quality Improvement Plans for the study participants. StatTwill draft guidelines for future air quality improvement plans using the information contained in the pilot study and report. (Attachment 8) Page 2, Item: / / Meeting Date: g/13/02 The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted EastLake III Woods and Vistas Replanning Program EIR 01-01, the Village Six SPA Plan EIR 98-01 and the Otay Ranch GDP Amendments/Village 11 SPA Plan EIR 01-02. Thus, no further environmental review or documentation is necessary. RECOMMENDATION: That the City Council: · Accept the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared for the City by Criterion Planners/Engineers Inc. and direct staff to draft Air Quality Improvement Plan Guidelines based on results of this report and the pilot air quality improvement plans. · Adopt a resolution approving the proposed amendment to the Eastlake 11I Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan. · Adopt a resolution approving the proposed amendment to the Otay Ranch Village Six Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan. · Adopt a resolution approving the proposed amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan. BOARDS/COMMISSIONS RECOMMENDATION: The Planning Commission held a public hearing on July 10, 2002 to consider the Project. The Planning Commission voted $-0 (Commissioners Hall and Thomas absent) to recommend that the City Council take the actions listed above. DISCUSSION: The City of Chula Vista has been a leader and innovator in promoting local air quality and energy /I-2 Page 3, Item: ] / Meeting Date: g/13/o2 conservation efforts. The City Council has taken a proactive role in addressing the air quality and energy challenges posed by rapid growth. The proposed pilot program will enhance air quality and energy conservation efforts in master planned communities being developed in Eastern Chula Vista. The City's Growth Management Ordinance requires that an Air Quality Improvement Plan be prepared for all major development projects (50 dwelling units or greater). City adoption of the Carbon Dioxide (CO2) Reduction Plan in November 2000 provided for further consideration of land use and energy efficient measures in new development in order to reduce CO2 emissions, energy consumption and air pollution. In addition, the Chula Vista GreenStar Building Incentive Program (GreenStar), currently being developed through a previously awarded Environmental Protection Agency (EPA) grant, was expanded to include the identification of air quality and energy conservation measures at both the SPA plan and individual construction project level. A portion of the EPA grant was used to fund consultant assistance in preparing an air quality/energy conservation pilot study. On March 27, 2001, the City Council approved an agreement between the City and Criterion Planners/Engineers Inc. for consulting services to prepare a customized computer model, related reports and preparation of Air Quality Improvement Plans for three development projects. The pilot study participants are EastLake III, Otay Ranch Village Six and Otay Ranch Village Eleven. The Sectional Planning Area (SPA) Plans for all three projects have been approved and are conditioned to require preparation of their Air Quality Improvement Plans based on the outcomes of the pilot study and information contained in the INDEX Pilot Test report. The proposed amendments to the three projects are necessary in order to incorporate the required Air Quality Improvement Plans into the SPA Plan documents. (See locator maps.) The INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report, prepared by Criterion Planners/Engineers Inc., outlines the Chula Vista pilot study and describes how the computer modeling system measures the attributes and performance of community plans. (Attachment 8) The report identifies twelve key action measures taken from the City's Carbon Dioxide (CO2) Reduction Plan for incorporation into 52 indicators used in the pilot study. The indicators quantify the characteristics of the twelve key measures and are then programmed in INDEX. Baseline data established for the study consisted of modeling three older existing neighborhoods constructed in the 1970's and 1980's. The baseline data was then used to compare and rate the study projects. The INDEX modeling found that all three pilot study SPA Plans were more energy-efficient than the baseline neighborhoods. EastLake III is approximately 4.8% more efficient, Otay Ranch Village Six is about 8.6% more efficient and Otay Ranch Village Eleven is Page 4, Item: [ [ Meeting Date: g/!_~/fl~ approximately 10.8% more energy-efficient. In comparison with the baseline data there was a reduction in air pollutants and CO2 (greenhouse gas emissions) of .20% for the EastLake m project. The scores for Otay Ranch Village Six reflected a 5.4% reduction, and Otay Ranch Village Eleven a 6.5% reduction in air pollutants and CO2 emissions. The most effective way of improving the project scores is through site plan modification in the areas of land-use density, land-use diversity and multimodal circulation design. The pilot study SPA Plans were at an advanced stage in the approval process as the study began, therefore, it was not feasible to make major changes in the land-use and circulation designs. The review and analysis contained in the INDEX Pilot Test report then focused on methods to improve air quality and energy conservation for the approved study SPA Plans. In addition to increasing densities, expanding diversity of land uses and modification of streets and circulation, the following options remained for consideration by the study participants to improve air quality and energy efficiency in their projects: 1. Title 24 Exceedence Participation in existing building efficiency programs such as ComfortWise and the new SDG&E California Energy Star program will result in structures that exceed the Title 24 standards by 15%. The developers were also given the opportunity to design their own Title 24 exceedence program to further improve upon the Title 24 standards. 2. Solar Measures Solar photovoltaic (PV) power generation systems. While the cost/benefit equation has improved in recent years, the study found the break-even point for residential applications to be the length of the loan (7% loan rate for 30 years). Commercial applications are more cost effective due to the state and federal incentives available to businesses. Solar thermal applications. Solar water heating in new residential construction is cost effective due to the relatively low cost of the system, available rebates and current natural gas prices. 3. Tree Planting This option will offset greenhouse gas emissions (CO2) and help mitigate climate change. It will not, however, improve the SPA's air pollutant emissions or energy efficiency. During the course of the pilot study Assembly Bill (AB) 970 was signed into law and has taken effect. It required the California Energy Commission to adopt new Title 24 energy efficiency Page 5, Item: / ] Meeting Date: g/l_~/fl2 standards for residential and nonresidential buildings. The new standards have resulted in more stringent construction requirements to achieve approximately a 12% increase in energy conservation beyond what was previously required. With all of the proposed pilot study dwelling units now mandated by the State to be 12% more energy efficient than they were required to be at the onset of the study, this has had an impact on the pilot study participants and their ability to exceed the new Title 24 standards in a cost-effective manner. While exceeding these new requirements may now be more difficult, it is still possible to achieve a 15% Title 24 exceedence by participating in existing building efficiency programs such as ComfortWise and the SDG&E California ]Energy Star program. Air Quality Improvement Plans After consideration of the above options, EastLake 1]] and Otay Ranch Village Six selected thc Title 24 Exceedcnce and Trec Planting indicators to improve energy efficiency and air quality for their projects. Overall, with these modifications EastLake m and Otay Ranch Village Six achieved an additional 1% reduction in energy use and a small decrease in CO2 emissions and air pollutants beyond the original project scores. The additional tree planting resulted in an increase in CO2 uptake of 25% for EastLake RI and 22% for Otay Ranch Village Six. Again, while this option does not reduce air pollutants it does offset greenhouse gas emissions helping to mitigate global warming. Otay Ranch Village Eleven chose no further options identified in the pilot study. They did, however, commit to six construction level measures that have not been modeled for scoring purposes. A sumnrary of the Air Quality Improvement Plans for the three pilot study projects follows: EastLake III The Air Quality Improvement Plan for EastLake m (Attachment 9) requires implementation of the following air quality/energy efficiency measures: Building Energy Efficiency Program & Title 24 Exceedence · EastLake Woods - 72 single-family homes will participate in ComfortWise, SDG&E California Energy Star Partnership or equivalent program resulting in approximately 15% exceedence over the new Title 24. Page 6, Item: t I Meeting Date: g/1~4/02 · EastLake Woods - 255 single-family homes will participate in the SDG&E Califomia Energy Star Partnership Program resulting in approximately 15% exceedence over the new Title 24. To further promote the AQIP, the Master Developer will encourage all merchant builders to participate in a building efficiency program. Additional Tree Planting to Offset Greenhouse Gas Emissions 855 trees will be planted within the slopes and other open space areas of the project site as detailed below: · EastLake Woods - 262 trees · EastLake Woods West - 233 trees · EastLake Vistas - 360 trees The Master Developer will obtain certification by a Registered Landscape Architect that additional trees have been included on the Master Landscape Plan for EastLake I~. Construction and Dust Control Measures · Comply with Section 4.8.5 Mitigation Measures, EastLake HI Woods and Vistas Replanning Program Final Subsequent Environmental Impact Report 01-01. Otay Ranch Village Six The Air Quality Improvement Plan for Otay Ranch Village Six (Attachment 10) contains the following implementation measures for the project developers: Title 24 Exceedence · McMillin Land Development Construction of 482 single-family detached homes to exceed the new Title 24 by 10%. · Otay Ranch Company Encourage all merchant builders to participate in a building efficiency program. Additional Tree Planting to Offset Greenhouse Gas Emissions Page 7, Item: Meeting Date: · McMillin Land Development - 244 trees to be planted in parkways and medians. McMillin will obtain certification by a registered Landscape Architect that additional trees have been included on the Master Landscape Plan for their portion of Otay Ranch Village Six. · Otay Ranch Company - 548 trees to be planted in 15ont yards of single family detached units. The Otay Ranch Company will obtain certification by a registered Landscape Architect that additional trees have been included on the single-family lots in their portion of Otay Ranch Village Six. Construction and Dust Control Measures · Comply with Section 5.11.5 Mitigation Measures, Otay Ranch Village Six Sectional Planning Area (SPA) Plan Environmental Impact Report 98-01. Otay Ranch Village Eleven The Air Quality Improvement Plan for Otay Ranch Village Eleven (Attachment 11) requires implementation of the measures listed below: Construction and Dust Control Measures · Comply with Section 5.11.6 Mitigation Measures, Otay Ranch GDP Amendments/Village Eleven SPA Plan Environmental Impact Report 01-02. To further promote the AQIP, the Master Developer will implement construction level design features described in the Plan, and will recommend additional construction level measures such as participation in a building efficiency program, use of "Low E" windows, energy-efficient lighting, 220-volt electrical service to the garage, and additional tree planting be considered by all merchant builders in an effort to reduce energy consumption. INDEX Study Results It is important to recognize the improvements in energy efficiency that have occurred in the building industry and in particular the pilot study SPA Plans in comparison to typical residential development projects built in the 1970's and 1980's. Otay Ranch Village Six and Village Eleven have been planned and designed as neo-traditional, Page 8, Item: Meeting Date: ~ pedestrian-oriented urban villages, with Village Six containing a future transit station in the Village Core. Otay Ranch Village Six realized a 9.7% energy reduction score due mainly to the higher densities proposed, pedestrian friendly path and trail networks and pr~ovision of transit services. Otay Ranch Village Eleven also attained a 10.8% energy reduction score for many of the same reasons. EastLake 11I, while lower in density, still displayed considerable improvements (4.8% energy reduction) over the baseline, and would realize an additional 1% improvement by implementing the additional measures proposed. Increased tree planting will increase the amount of greenhouse gases (CO2) absorbed by vegetation over the course of a year. As mentioned before, EastLake III and Otay Ranch Village Six achieved an increase in vegetative CO2 uptake of 25% and 22% respectively by committing to additional tree planting in their projects. Although the Planning Commission unanimously supported the programs as recommended by staff, some of the Commissioners expressed concerns and asked questions regarding the size, species, maintenance and retention of the additional trees. The three pilot SPA Plan projects are required to submit Landscape Plans that will ensure the use of proper tree material. In addition, the Zoning Code and Landscape Manual requires all trees be a minimum 15 gallon container size on public or HOA maintained land and private lots. Further guidance regarding the CO2 uptake tree planting option will also be provided in the AQIP Guidelines. During the study some updates to the SPA Plans occurred prior to the modeling process. These changes improved scores relative to the baseline. EastLake llI provided additional trail connections, Otay Ranch Village Six included bridge connections over major streets and Village Eleven made changes to the street pattem resulting in better connectivity. The final results are illustrated in the following tables: 1t .--? Page 9, Item: / Meeting Date: g/13/02 AIR QUALITY AND ENERGY CONSERVATION IMPROVEMENTS Baseline EastLake III Otay Ranch Otay Ranch Villaoe Six Villaoe Eleven -- Original Modified Original Modified Ori~nal Total Energy Use 75.56 71.94 71.19 69.05 68.25 67.39 (MMBtu/w/capita) % Energy -- 4.8 5.8 8.6 9.7 10.8 Reduction Total CO2 Emissions 10,493 10,471 10,404 9,943 9,873 9,833 (lbs/w/capita) % CO2 Emissions Reduction -- 0.20 0.85 5.24 5.90 6.29 Total Air Pollutant Emissions 544.85 544.87 544.75 543.81 543.68 543.59 (lbs/F/capita) % Air Pollutant Emissions .... .01 .19 .21 .23 Reduction VEGETATIVE CO2 UPTAKE IMPROVEMENTS FROM TREE PLANTING EastLake III Otay Ranch Otay Ranch Villaoe Six Villaoe Eleven Original Modified Original Modified Ori~nal Vegetative CO2 Uptake (lbs/w) 169,950 212~700 179,300 21&900 163~350 increase in Vegetative C02 42,750 lbs./yr 39,600 lbs./yr. __ Uptake (lbs/yr) 25% increase 22% increase Page 10, Item: // Meeting Date: Air Quality Improvement Plan Guidelines The next step in the study program is to prepare guidelines for future Air Quality Improvement Plans, which staff will initiate upon adoption of the pilot AQIP's and receiving City Council direction. The air quality and energy conservation pilot study has provided information for staff to usc in developing guidelines for the preparation of future Air Quality Improvement Plans. Existing Development It is important to note that although new residential construction was the focus of the pilot study, them are opportunities for existing residences to conserve energy. The San Diego Regional Energy Office, the California Energy Commission and San Diego Gas and Electric coordinate a number of rebate programs for the installation of energy efficient devices. They provide vouchers for installation of solar panels and double-paned windows to household appliances, insulation and lighting. Conclusion Air Quality Improvement Plans required by the City's Growth Management Ordinance have been prepared for three separate projects, EastLake III, Otay Ranch Village Six and Otay Ranch Village Eleven, consistent with the outcome of the air quality/energy conservation pilot study initiated by the City and agreed to by the various project property owners. Staff has concluded that the amendments to the EastLake Iff Sectional Planning Area (SPA) Plan, Otay Ranch Village Six Sectional Planning Area (SPA) Plan, and Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan, are all consistent with the objectives of the pilot study program, requirements of the Growth Management Ordinance, and goals and policies of the Chula Vista General Plan. The proposed amendments are also consistent with the policies and requirements described in the approved EastLake III GDP and Otay Ranch GDP/SRP. In addition, the amendments will enhance the environmental quality of the three developments through the implementation of air quality and energy conservation measures beyond current mandates. Staff recommends approval of the amendments to the EastLake Iff Sectional Planning Area (SPA) Plan, Otay Ranch Village Six Sectional Planning Area (SPA) Plan, and Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan, to incorporate Section 11.7 Air Quality Improvement Plan into ROLLUN'~G HILLS RANCH EASTLAKE EASTLAKE UPPER BUSINESS WOODS OTAY CENTER !~ RESERVOIR PROJECT LOCATION ~ EASTLAKF~ EASTLAKE LO~R TRAH~S ¥[STAS OT.~¥ RESERVOIR EASTLAKE: GREENS ~ TRAINING CEN~FER CHULA VISTA PLANNING AND BUILDING DEPARTMENT PROJECT PROJECT DESCRIPTION: APPLICANT: CITY OF CHULA VISTA  PROJECT ..AMENDMENT ADDRESS: OTAY LAKES ROAD Request Amendment to Eastlake III SPA Plan to incorporate the Air Quality Improvement Plan. NORTH C:\DAIFILES~locators\PCM0224.cdr 05/29/02 /i ~ /~' Attachment ! EA~T~K~ GREENS COUNTRYSH) E LOMAS VERDE VILLAGE 11 VILLAGE SiX FREEWAY COMMERCIAL VILLAGE 2 FUTURE ~ EASTERN URBAN CENTER VILLAGE 7 t,,t.,. .PROJECT LOCATION CHU._.....~LA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT ~ PROJECT DESCRIPTION: ,~ APPUC.~q': CITY OF CHULA VISTA ,,AMENDMENT PROJECT Southeast comer of La Media Roa~ ADDRESS: and Olympic Parkway Request:. Amendment to Otay Ranch Village Six SPA Plan NORTH SCXL~ . I FILE NUMBER: [O incorporate the Air Quality Improvement Plan. '- C:\DAIFILES\locators\PCM0224.cdr 05/29/02 ~ / / ~./,~? Attachment 2 EASTLAKE GREENS FREEWAY COMMERCIAL VILLAGE ELEVEN EASTERN URBAN CENTER LOCATION CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOF ..OJEc'r "ROJEC'~ DESCR,.~O.:  APPLICANT; CITY OF CHULA VISTA F.O:ECT AMEN DMENT ADDRESS: OLYMPIC PARKWAY Request: Amendment to Otay Ranch Village Eleven SPA Plan .. SCALE: FILE NUMBER: to incorporate the Air Quality Improvement Plan. NORTH No Scale PCM-02-24 C:\DAIFILES\locators\pcm0224.cdr 05/29/02 //- / ~ Attachment 3 Page 11, Item: ] [ Meeting Date: 8/t 3/02 each individual Sectional Planning Area (SPA) Plan Furthermore, it is recommended that based upon the results of the pilot study, staff be directed to draR Air Quality Improvement Plan Guidelines for future consideration by the City Council. FISCAL IMPACT: The source of funds for the pilot study was the Environmental Protection Agency (EPA) grant to develop the "Carbon Dioxide Reduction Plan: GreenStar Building Incentive Program". A portion of the grant provided for contractual services to design soRwarc for options to enhar/ce energy efficiency in new construction and develop air quality standards. The affected developers will bc responsible for implementing their plans. Atlachmentq 1. EastLake III Locator Map 2. Otay Ranch Village Six Locator Map 3. Otay Ranch Village Eleven Locator Map 4. Planning Commission Resolution PCM-02-24A 5. planning Commission Resolution PCM-02-24B 6. Plmg Commission Resolution PCM-02-24C 7. Plunnmg Commission Minutes July 10, 2002 meeting 8. INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, Criterion Planners/Engineers. 9. EastLake III Section II.7 Air Quality Improvement Plan 10. Otay Ranch Village Six Section II.7 Air Quality Improvement Plan 11. Otay Ranch Village Eleven Section I1.7 Air Quality Improvement Plan C:~-ay files~unend to spa aqip~reports~PCM 02-24 report CC.doc RESOLUTION NO. PCM-02-24A RESOLUTION OF Tm~ PLANNING COMMISSION OF THE CITY OF CHULA VISTA RECOMMENDING THAT THE CITY COUNCIL APPROVE AN AMENDMENT TO TI-IE EASTLAKE III SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION 11.7 AIR QUALITY IMPROVEMENT PLAN WHEREAS, the property which is the subject matter of this resolution is identified in Exhibit "A" attached and is commonly known as EastLake Iii; and, WHEREAS, on March 27, 2001, the City Council approved an agreement between the City of Chula Vista and Criterion Planners/Enginecrs Inc. for the preparation of a computer model, related reports and analyses of air quality and energy conservation measures for three development projects; and WHEREAS, the property owners of the three development projects, including EastLake HI Sectional Planning Area (SPA) Plan agreed to participate in a pilot study program to develop and implement new air quality improvement measures; and WlqEREAS, when the EastLake HI Sectional Planning Area (SPA) Plan was adopted there was no Air Quality Improvement Plan included pending the results of the pilot study program; and WI~REAS, a report containing analyses of the computer model and the results of the pilot study program was prepared by Criterion Planners/Engineers Inc., entitled INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, and a copy shall be kept on file with the City Clerk; and WItlF, REAS, the air quality and energy conservation report and pilot study program provided necessary information for staff to use in developing guidelines for the preparation of future air quality improvement plans; and WltEREAS, a Air Quality Improvement Plan has now been prepared for inclusion in the EastLake HI Sectional Planning Area (SPA) Plan consistent with the outcomes of the air quality and energy conservation pilot study program; and WItEREAS, an application (PCM 02-24) to amend the EastLake HI Sectional Planning Area (SPA) Plan was filed by the City of Chula Vista Planning Division with the consent of the property owner; and WItEREAS, the City of Chula Vista Planning Division requests an amendment to the EastLake HI Sectional Planning Area (SPA) Plan to incorporate Section I1.7 Air Quality Improvement Plan into the Sectional Planning Area (SPA) document to fulfill the objectives of the pilot study program and the requirements of the City's Growth Management Program (hereinafter referred to as Project); and ATTACHMENT 4 WItEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance w/th the CalifOrnia Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted EastLake I~ Woods and Vistas Replanning Program EIR 01-01, therefore no further environmental rev/ew or documentation is necessary;, and WttEREAS, the Planning and Building Director set the time and place for a heating on said Amendment to EastLake I~ Sectional Planning Area (SPA) Plan (PCM-02-24) and notice of said heating, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and tenants within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and WHEREAS, the heating was held at the time and place as advertised, namely 6:00 p.m., July 10, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said heating was thereafter closed. NOW, TI-IEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the City Council adopt the attached draft City Council Resolution approving the amendment to EastLake I~ Sectional Planning Area (SPA) Plan in accordance with the findings and subject to the conditions contained therein. BE IT FURTHER RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the City Council accept the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared for the City by Criterion Planners/Engineers Inc., and direct staff to draft Air Quality Improvement Plan Guidelines. BE IT FURTHER RESOLVED THAT a copy of this Resolution be transmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CItULA VISTA, CALIFORNIA, this 10~ day of July, 2002 by the following vote, to-wit: AYES: NOES: ABSENT: Kevin O'Neill, Chairperson ATTEST: ROLLING HILLS RANCH UPPER EASTL~LKE EASTLAKE OTAY BUSUN'ESS WOODS RESERVOIR CENTER II PROJECT WOODS WF~"T LOCATION ' EASTLAKE EASTLAKE LOWER TRAILS VISTAS OTAY RESERVOIR EASTLAKE ~ GREENS ~ TRAINING CENTER CHULA VISTA PLANNING AND BUILDING DEPARTMENT ' LOCATOR "RO~ECT PROJECT DESCRIPTION:  APPLICANT: CITY OF CHULA VISTA ~RD~OT AMENDMENT ADDRESS: OTAY LAKES ROAD Request: Amendment to Easflake Ill SPA Plan to incorporate .. SCALE: FILE NUMBER: the Air Quality Improvement Plan, · NORTH No Scale PCM-02-24 n.xna,=,, =~,~,~.~, .......... ~. ~.__ Exhibit A ____. ~rs\POM0224.cdr 05/29/02 / _. / .~7 RESOLUTION NO. PCM-02-24B RESOLUTION OF THE PLANNING COMMISSION OF TI-W~ CITY OF CHULA VISTA RECOMMENDING THAT THE CITY COUNCIL APPROVE AN AMENDMENT TO Tl~E OTAY RANCH VILLAGE SIX SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION II.7 AIR QUALITY IMPROVEMENT PLAN WHEREAS, the property which is the subject matter of Ilxis resolution is identified in Exhibit "A" attached and is commonly known as Otay Ranch Village Six; and, WHEREAS, on March 27, 2001, the City Council approved an agreement between the City of Chula Vista and Criterion Planners/Engineers Inc. for the preparation of a computer model, related reports and analyses of air quality and energy conservation measures for three development projects; and WI-1EREAS, the property owners of the three development projects, including Otay Ranch Village Six Sectional Planning Area (SPA) Plan agreed to participate in a pilot study program to develop and implement new air quality improvement measures; and WHEREAS, when the Otay Ranch Village Six Sectional Planning Area (SPA) Plan was adopted there was no Air Quality Improvement Plan included pending the results of the pilot study program; and WHEREAS, a report containing analyses of the computer model and the results of the pilot study program was prepared by Criterion Planners/Engineers Inc., entitled INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, and a copy shall be kept on file with the City Clerk; and WHEREAS, the air quality and energy conservation report and pilot study program provided necessary information for staffto use in developing guidelines for the preparation of future air quality Improvement plans; and WHEREAS, an Air Quality Improvement Plan has now been prepared for inclusion in the Otay Ranch Village SIX Sectional Planning Area (SPA) Plan consistent with the outcomes of the air quality and energy conservation pilot study program; and WHEREAS, an application (PCM 02-24) to amend the Otay Ranch Village Six Sectional Planning Area (SPA) Plan was filed by the City of Chula Vista Planning Division with the consent of the property owner; and WHEREAS, the City of Chula Vista Planning Division requests an amendment to the Otay Ranch Village SIX Sectional Planning Area (SPA) Plan to incorporate Section I1.7 Air Quality Improvement Plan into the Sectional Planning Area (SPA) document to fulfill the objectives of the pilot study program and the requirements of the City's Growth Management Program (hereinat~er referred to as Project); and ATTACHMENT 5 //-/? WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted Village Six SPA Plan EIR 98-01 and therefore no further environmental review or documentation is necessary;, and, WHEREAS, the Planning and Building Director set the time and place for a hearing on said Amendment to Otay Ranch Village Six Sectional Planning Area (SPA) Plan (PCM- 02-24) and notice of said hearing, together w/th its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and tenants within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and, WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m., July 10, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed. NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the City Council adopt the attached draft City Council Resolution approving the amendment to Otay Ranch Village Six Sectional Planning Area (SPA) Plan in accordance with the findings and subject to the conditions coma/ned therein. BE IT FURTHER RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the City Council accept the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared for the City by Criterion Planners/Engineers Inc., and direct staffto draft Air Quality Improvement Plan Guidelines. BE IT FURTHER RESOLVED THAT a copy of this Resolution be Iransmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA, CALIFORNIA, this 10th day of July, 2002 by the following vote, to-wit: AYES: NOES: ABSENT: Kevin O'Neill, Chairperson ATTEST: EASTLAKE GREENS COUNTRYSIDE LOMAS VERDE VILLAGE 11 VILLAGE SIX FREEWAY COMMERCIAL VILLAGE 2 FUTURE tM ,"' EASTERN URBAN CENTER VILLAGE 7 ~ PROJECT LOCATION CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT PROJECT DESCRIPTION:  ^PPUCAm-: CITY OF CHULA VISTA AMENDMENT PROJECT Southeast corner of La Media Road ADDRESS: and Olympic Parkway Request: Amendment to Otay Ranch Village Six SPA Plan .. SCALE~ FILE NUMBER: to incorporate the Air Quality Improvement Plan. NORTH No Scale PCM-02-24 ~,xhibit A rs\PCMO224.cdr 05/29/02 / ~ _ ,,? ~ RESOLUTION NO. PCM-02-24C RESOLUTION OF THE PLANNING COMMISSION OF TIlE CITY OF CHULA VISTA RECOMMENDING THAT THE CITY COUNCIL APPROVE AN AMENDMENT TO THE OTAY RANCH VILLAGE ELEVEN SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION H.7 AIR QUALITY IMPROVEMENT PLAN WHEREAS, the pmperty which is the subject matter of this resolution is identified in Exhibit "A" attached and is commonly known as Otay Ranch Village Eleven; and, WHEREAS, on March 27, 2001, the City Council approved an agreement between the City of Chula Vista and Criterion Planners/Engineers Inc. for the preparation of a computer model, related reports and analyses of air quality and energy conservation measures for three development projects; and WHEREAS, the property owners of the three development projects, including Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan agreed to participate in a pilot study program to develop and implement new air quality improvement measures; and WHEREAS, when the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan was adopted there was no Air Quality Improvement Plan included pending the results of the pilot study program; and WltEREAS, a report containing analyses of the computer model and the results of the pilot study program was prepared by Criterion Plannem/Engineers Inc., entitled INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, and a copy shall be kept on file with the City Clerk; and WHEREAS, the air quality and energy conservation report and pilot study program provided necessary information for staff to use in developing guidelines for the preparation of future air quality improvement plans; and WHEREAS, an Air Quality Improvement Plan has now been prepared for inclusion in the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan consistent with the outcomes of the ak quality and energy conservation pilot study program; and WHEREAS, an application (PCM 02-24) to amend the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan was filed by the City of Chula Vista Planning Division with the consent of the property owner; and WHEREAS, the City of Chula Vista Planning Division requests an amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan to incorporate Section 1/.7 Air Quality Improvement Plan into the Sectional Planning Area (SPA) document to fulfill the objectives of the pilot study program and the requirements of the City's Growth Management Program (hereinafter referred to as Project); and ATTACHMENT 6 WItEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted Otay Ranch GDP Amendments/Village 11 SPA Plan EIR 01-02, and therefore no further environmental review or documentation is necessary;, and, WltEREAS, the Planning and Building Director set the time and place for a hearing on said Amendment to Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan (PCM-02-24) and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and tenants within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and, WItEREAS, the heating was held at the time and place as advertised, namely 6:00 p.m., July 10, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed. NOW, TItEREFORE, BE IT RESOLVED TltAT TIlE PLANNING COMMISSION hereby recommends that the City Council adopt the attached draft City Council Resolution approving the amendment to Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan in accordance with the findings and subject to the conditions contained therein. BE 1T FURTHER RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the City Council accept the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared for the City by Criterion Planners/Engineers Inc., and direct staffto draft Ak Quality Improvement Plan Guidelines. BE IT FURTFIER RESOLVED TI-IAT a copy of this Resolution be transmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CItULA VISTA, CALIFORNIA, this l0th day of July, 2002 by the following vote, to-wit: AYES: NOES: ABSENT: Kevin 0 Neill, Chairperson ATTEST: EASTLAKE GREENS FREEWAY COMMERCIAL VILLAGE ELEVEN EASTERN URBAN CENTER PROJECT LOCATION CHUI.A VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR .ROJECT PROJE¢I' DESCRIPTION: APPLICANT: 01TY OF CHUL~ VISTA  PROJEO, AMENDMENT ADDRESS: OLYMP C PARKWAY Request: Amendment to Dray Ranch Village Eleven SPA Plan SCALE: FILE NUMBER: : to incorporate the Air Quality Improvement Plan. NORTH No Scale PCM-02-24 Exhibit A C:\DAIFILES\locators\pcm0224.cdr 05/29/02 / j ~- ~ ,~:, Planning Commission Minutes - ? - July 10, 2002 queing of cars both for ingress and egress along the Lowes parking lot area thereby avoiding congestion onto the public thoroughfare. Colton Sudberry, 5465 Morehouse Drive, Ste. 260, San Diego, CA 92121 with Sudberry Properties stated there is a proposed Italian restaurant on the west side of the center and an island Restaurant on the east side. Public Hearing closed 7:50 MSC (Willet'dMcCann) (5-0-2) that the Planning Commission adopt Resolution GPA 02- 071PCM 01-15, recommending that the City Council adopt the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (IS 01-42) issued for the project. Motion carried. MSC (Willett/McCann) (5-0-2) that the Planning Commission adopt Resolution GPA 02- 07/PCM 01-15, recommending that the City Council approve the proposed amendments to the General Plan and Eastlake II General Development Plan and Planned Community District Regulations and Land Use Districts Map. Also, adopt the new Sectional Planning Area (SPA) plan to be known as the Eastlake Village Center North Supplemental SPA. Motion carried. i 1. PUBLIC HEARING: PCM 02-24; Consideration of amendments to the Eastlake III Sectional Planning Area (SPA) Plan, Otay Ranch Village Six Sectional Planning Area (SPA) Plan, and Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan, to incorporate Section 11.7 Air Quality Improvement Plan into each of the Sectional Planning Area (SPA) Plans. Background: Mary Venables, Associate Planner stated that for the Commission's consideration is the Air Quality and Energy Conservation Pilot Program, including SPA Plan amendments to incorporate the Air Quality Improvement Plans into three projects. The three projects participating in the study are the same three projects that are participating in the Water Conservation Plan. They are Eastlake III (Woods/Vistas), Otay Ranch Village 6 and 11. During the course of the pilot study AB 970 was signed into law requiring the California Energy Commission to adopt new Title 24 energy efficiency standards for residential and nonresidential buildings, which resulted in more stringent construction requirements to achieve approximately a 12% increase in energy conservation beyond what was previously required. Chula Vista does have some local requirements and programs beyond federal and State regulations. The Growth Management Ordinance requires an Air Quality Improvement Plan be prepared for all major projects 50 du's or greater. The CO2 Reduction Plan was adopted in November of 2000 and contains a number of action measures that are related to land use and energy efficiency that can be applied to new development. The implementation of these action measures the responsibility of the Planning Division and includes such items as site design with pedestrian and bicycle and transit ATTACHMENT 7 Planning Commission Minutes - 8 - July 10, 2002 orientation. The remaining measures in the CO2 Plan are related to municipal programs and facilities that are managed by the City Special Operations Section. The Greenstar Building Incentive Program is one of the CO2 reduction plan action members being implemented by the Planning Division. This program encourages builders to participate in energy-efficient building programs that increase energy efficient beyond the Title 24 Energy Code requirements. These are programs such as Comfort Wise and the New California Energy Star Program sponsored by SDG&E. Builders are rewarded for their voluntary participation with priority building permit processing. The developers of the three projects agreed to participate in a pilot study to evaluate methods and improve air quality and energy conservation. In March 2001, the City Council retained Criterion Planners/Engineers to provide consulting services to prepare a computer model and report and prepare air quality improvement plans for the three projects. The Eastlake Company agreed to implement two of the options and those are the Title 24 Exceedence and tree planning. In the Eastlake Woods there will be 72 homes constructed using one of the building efficiency programs and there will also be 255 homes constructed using the new SDG&E Energy Star Program. All of these homes will exceed the Title 24 regulations by 15%. The Eastlake Company has also agreed to plant 855 additional trees to offset (:;02 emissions. The Otay Ranch Village 6 is owned by two developers (McMillin Land Development and The Otay Ranch Company). The portion owned by McMillin, 482 homes will exceed Title 24 by 10%. McMillin is developing its own efficiency program in order to achieve this. In addition, McMillin has also agreed to plant an additional 244 trees and the Otay Ranch Company has agreed to plant 548 additional trees. The developer of Otay Ranch Village Eleven (Brookfield Shea Otay) chose not to implement the options identified in the study, but instead agreed to install several construction level design features that were not modeled in the pilot Study. For example, provision of outside electrical outlets to encourage use of electdc powered yard maintenance equipment, gas connections for fireplaces and 50 gallon or smaller water heaters. Although Village Eleven's efforts are taken into account, the City took a conservative approach and did not give energy and air quality improvement credits to this project since the City was unable to measure the proposed features. Staff Recommendation: That the Planning Commission: · Recommend that the City Council accept the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared for the City by Criterion Planners/Engineers Inc. and direct staff to draft Air Quality Improvement Plan Guidelines; · Adopt Resolution, PCM~02-24A recommending that the City Council approve the proposed amendment to the Eastlake III Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan in accordance with the findings contained therein; Planning Commission Minutes - 9 - Ju~y 10, 2002 · Adopt Resolution PCM 02-24B recommending that the City Council approve the proposed amendment to the Otay Ranch Village six Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan in accordance with the findings contained therein; and · Adopt Resolution PCM 02-24C recommending that the City Council approve the proposed amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan in accordance with the findings contained therein. Discussion: Commissioner Castaneda asked what requirements are in place that will give some assurance that the trees and vegetation will be there in the future when they've reached the maturity level that it takes in order for it to be most beneficial. Ms. Venables responded that with the exception of the trees that the Otay Ranch Company is putting in their single family lots, the rest of the trees will be in slope areas and medians, essentially areas that will be maintained or overseen by a homeowners associations or a facilities districts; when trees die, they are replaced. Public Hearing Opened and Closed 8:25. MSC (Willett/McCann) (5-0-2) That the Planning Commission: · Recommend that the City Council accept the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared for the City by Criterion Planners/Engineers Inc. and direct staff to draft Air Quality Improvement Plan Guidelines; Adopt Resolution, PCM-02-24A recommending that the City Council approve the proposed amendment to the Eastlake III Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan in accordance with the findings contained therein; · Adopt Resolution PCM 02-24B recommending that the City Council approve the proposed amendment to the Otay Ranch Village six Sectional Planning Area {SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area (SPA) Plan in accordance with the findings contained therein; and · Adopt Resolution PCM 02-24C recommending that the City Council approve the proposed amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan incorporating the required Air Quality Improvement Plan into the Sectional Planning Area {SPA) Plan in accordance with the findings contained therein. Motion carried. Planning Commission Minutes - 10 - July 10, 2002 DIRECTOR'S REPORT: COMMISSIONERS COMMENTS: ADJOURNMENT at 8:30 p.m. to the Planning Commission meeting of July 24, 2002. Diana Vargas, Secretary to Planning Commission /1-27 Final Report INDEX PILOT TEST: SPA AIR QUALITY IMPROVEMENT PLANS June 2002 Prepared by the CITY OF CHULA VISTA CALIFORNIA DEPARTMENT OF PLANNING & BUILDING and ON CRITERION PLANNERS ATTACHMENT 8 ! , CONTENTS Page Executive Summa~ 1 1. Overview 4 2. INDEX Modeling System 5 2.1 Introduction 5 2.2 Action Measures 6 2.3 Indicators 17 2.4 Baselines 18 2.5 Proposed SPA Plans 24 3. Pilot Test 26 3.1 Baseline Values 26 3.2 Original SPA Proposals 26 3.3 Modified SPA Proposals 35 3.4 Final Results 39 709/100 6/18/02 EXECUTIVE SUMMARY A pilot test has been conducted of an innovative technique for preparing Sectional Planning Area SPA Plan air quality improvement plans as required by the City's growth management ordinance. In the pilot test, three SPA plans were compared to older "baseline" neighborhoods to gauge the SPAs' relative energy efficiency and air quality characteristics. The baseline neighborhoods were selected to reflect land development practices prior to any special consideration of energy efficiency. The objective was to determine how much energy is being saved by current SPA design practices in comparison to the older baseline neighborhoods and in turn, how much lower the SPAs' air pollutant emissions are in comparison to the baseline. The test SPAs were compared to the baseline twice: first, as originally submitted to the City; and second, as voluntarily modified to further improve energy efficiency and air quality. Baseline Neighborhoods To establish a baseline of energy efficiency, three neighborhoods constructed in the 1970s and 80s were modeled: Terra Nova, College Estates I, and College Estates I1. When combined on a weighted average basis, these neighborhoods have a total baseline energy use of 76 million Btu/yr/capita. Original SPA Proposals The three test SPAs were modeled as originally submitted to the City and found to be notably more energy efficient than the baseline. Their total energy use and comparison to the baseline value are as follows: SPA MMBtu/Yr/Capita % Change From Baseline OR Village Six 69.05 -8.6 OR Village Eleven 67.39 -10.8 EastLake III 71.94 -4.8 A majority of the SPA energy savings come from residential densities that are higher than the baseline neighborhoods. Higher densities reduce space conditioning energy use due to more common walls and ceilings that reduce energy losses from the buildings. Higher densities also encourage travel energy savings through greater walking, biking, and transit use. 709/100 1 6/18/02 Modified SPA Proposals The next step in the pilot test was an invitation to the SPA developers to modify their plans to achieve even greater energy efficiency and air quality improvements. Because the three test SPAs were at an advanced stage of their approval process, it was not feasible to make major changes in their land-use and circulation designs. This left the following three action measures as the developers' principal choices if additional energy efficiencies were to be achieved: · Building Construction Standards. SPA developers could opt for a commitment to reduce building energy use by exceeding California Code of Regulations Title 24, Part 6. Developers could propose the amount of Title 24 exceedence per building type and the number of buildings that will participate in such exceedence. · Solar Systems. SPA developers could opt to reduce grid-supplied energy by installing solar thermal or PV systems and buildings. Developers could propose the type and capacity to be used, and the number of structures that will receive such systems. · Tree Planting. This measure allowed SPA developers to commit to additional tree planting that will offset greenhouse gas emissions. Selection of this option will not improve a SPA's energy efficiency or air pollutant emissions, but will help mitigate climate change. After considering these options, the SPA developers voluntarily elected to add the following action measure commitments: · EastLake III. 72 single-family homes will achieve a 15% Title 24 exceedence through the ComfortWise, SDG&E California Energy Star Program or equivalent program; 255 single-family homes will achieve a 15% Title 24 exceedence through the SDG&E California Energy Star Program; and an additional 855 trees will be planted. · Otay Ranch Village Six, 482 single-family homes will achieve a 10% Title 24 exceedence through energy-efficient building design and construction techniques to be selected by home designers/builders; and 792 additional trees will be planted. · Otay Ranch Village Eleven. No additional action measures were selected by this developer. 2 The addition of these measures reduced Village Six total energy use to 68.25 million Btu/yr/capita or approximately a 1% reduction from the odginal SPA proposal; and EastLake III dropped to 71.19 million Btu/yr/capita or approximately a 1% reduction from its odginal proposal. Also, the additional tree planting in Village Six and EastLake III resulted in beneficial CO2 uptake increases of 22% and 25%, respectively. Final Results Based on the modified SPA plans, the pilot test's final results for energy savings, air quality improvements, and greenhouse gas reductions are as follows: Baseline Village Village Six Eleven EastLake III Total energy use (MMBtu/yr/capita) 75.56 68.25 67.39 71.19 % energy reduction - - - 9.70 10.80 5.80 Total air pollutant emissions (Ibs/yr/cap[ta) 544.85 543.68 543.59 544.75 % air pollutant emissions reduction - - - 0.21 0.23 0.01 Total greenhouse gas emissions (Ibs/yr/capita) 10,493.00 9,873.00 9,833.00 10,404.00 % greenhouse emissions reduction - - - 5.90 6.29 0.85 709/100 3 6/18/02 1. OVERVIEW The City of Chuia Vista is experiencing rapid growth, particularly in the eastern territories. The City's adopted Growth Management Ordinance requires that all major development projects (50 dwelling units or greater) prepare an Air Quality Improvement Plan (AQIP). There have been no formal, adopted guidelines to-date, and developers have prepared the required AQIPs based largely on State and Federal mandates. The City Council recently adopted the Carbon Dioxide (CO2) Reduction Plan which provides for further consideration of land-use and energy efficient measures in new development to reduce CO2 emissions, energy consumption and air pollution. It is now the expectation of the City Council that the required AQIP will include implementation of applicable measures identified in the CO2 Reduction Plan. As a result, the City is undertaking an effort to prepare and adopt formalized guidelines for the preparation and implementation of required AQIPs. The City contracted with Criterion Planners/Engineers to use the INDEX model to analyze the relative effectiveness and costs of applying various design and energy conservation features in new development projects. One of the goals is to exceed existing mandates wherever possible such as the Title 24 Energy Code, and reduce air pollutants and CO2 emissions. The INDEX model can be used as a tool to assist in the efficient design of master planned communities. There are three major SPA Plans (EastLake Ill, Otay Ranch Village Six and Village Eleven) under preparation. The developers of these projects participated in the INDEX pilot study to assess the benefits of specific project design features and energy conservation measures. By doing so the developers satisfy the AQIP requirement for these SPA Plans and the City can obtain the necessary data for developing future AQIP guidelines and amendments to the Growth Management Ordinance. The SPA Plan project analysis occurred in two stages. The first stage evaluated the SPA Plans as proposed, assessing the benefits of the project's design and other features in comparison to the baseline project by means of the computer model. The model analyzed and quantified emissions reductions and energy savings for the individual SPA projects. Stage two involved a comparative assessment of making project design amendments and adding construction-level features identified by Criterion's evaluation to further air quality improvements, CO2 reduction and energy conservation. The model was re-run using the selected design amendments and construction level features. 709/100 4 6/18/02 2. INDEX MODELING SYSTEM 2.1 Introduction INDEX is a GIS-based planning support system that uses indicators to measure the attributes and performance of community plans. For each community where it is applied, INDEX is customized to address issues of interest or high priority. This is accomplished with the selection of indicators that measure conditions related specifically to those issues. The objective is to support decision-making by using indicators to benchmark existing conditions, evaluate alternative courses of action, select goals, and monitor change over time. In Chula Vista, INDEX is being focused on the related issues of energy efficiency, climate change, and air quality. The City has improvement goals in each of these areas and is interested in helping achieve them when large parts of the community are first planned for development. For this reason, the sectional planning area (SPA) process was selected as an appropriate application opportunity for INDEX. The City's growth management ordinance requires air quality improvement plans (AQIPs) as part of the SPA process, and INDEX was seen as an AQIP tool for quantifying the emission characteristics of SPA plans. The application of INDEX was conducted as a pilot test under a U.S. Environmental Protection Agency grant to the City for climate change activities. The pilot test included the following major steps: · Selection of action measures. A menu of action measures for SPAs was taken from the City's CO2 Reduction Plan. Twelve measures were selected from the CO2 Plan's action categories of land-use, transportation, and buildings. · Selection of indicators. Indicators were configured to quantify key characteristics of the twelve action measures. A total of 52 indicators were selected and programmed in INDEX. · Establishment of baselines. Calculating SPA air quality, CO2 emissions, and energy efficiencies required that baselines be established for the SPAs to be measured against. These baselines were set for each indicator using three older, existing neighborhoods that were developed without special considerations. 709/100 5 6/18/02 · Scoring of SPA plans. A test sample of three SPA plans were selected for two rounds of indicator scoring. First, the SPA plans were scored as originally submitted by their developers. Second, the plans were voluntarily modified by the developem to increase their efficiencies and then rescored. · Incorporation of results into AQIPs. The energy, air quality, and climate change improvements measured between the baselines and the modified SPA plans were translated into AQIPs for the SPAs. 2.2 Action Measures The first step in customizing INDEX for Chula Vista was selection of action measures that would be available to SPA developers. As part of the City's CO2 Reduction Plan preparation, several hundred measures were analyzed extensively. From that universe of measures, the most appropriate ones for Chula Vista were prioritized according to local feasibility and included as action measures in the final Plan. From this group of action measures, the following twelve were selected for the INDEX pilot test: Land-Use 1. Compact development. This is concerned with land and natural resource conservation generally by minimizing sprawl. Compact development saves energy and reduces emissions by reducing travel and infrastructure-related energy consumption. 2. Density. This is the intensity of land-use as measured by the density of structures and persons. Higher densities reduce travel and infrastructure-related energy use and emissions, and also reduce building energy demand as a consequence of more common-wall construction. 3. Diversity. This measure is concerned with the mix and variety of land-uses that constitute "complete" neighborhoods. Greater diversity or "completeness" in an area reduces travel-related energy consumption and emissions. 4. Orientation toward pedestrian and bicycles. This measure is focused on land planning that facilitates pedestrian and bicycle travel, both of which offer energy and emission savings over motor vehicles. 709/100 6 6/18/02 5. Orientation toward transit. This measure addresses land development design that facilitates transit travel, which can be highly energy-efficient with sufficient ridership. Buildinqs 6. General energy design and equipment. This measure encompasses building design, materials, and equipment that improve efficiency generally. 7. Solar use. This includes solar thermal applications such as domestic hot water heating and pool heating, and solar power generation using photovoltaic (PV) technology. 8. Vegetation. This measure recognizes the use of vegetation that cools ambient air temperatures, reduces building energy use for cooling, and uptakes air pollutants and greenhouse gases. Transportation 9. Pedestrian facilities. This measure addresses transportation system design and improvements specifically for walking. 10. Bicycle facilities. This measure focuses on transportation system design and improvements for bicycle travel. 11. Transit facilities. This measure includes transportation system design and improvements dedicated to transit service. Infrastructure 12. Water use. This measure is concerned with land planning that reduces water consumption. Less water consumption translates into reduced energy use for water distribution. 709/100 7 6/18/02 The characteristics of these measures are further summarized in Table 1 according to type of energy savings, general cost-effectiveness, technological maturity, durability, support for business and job creation, and notable non-energy community benefits. The Table I assessment is a qualitative characterization of the measures based on Cdtedon's experience and professional judgment, including preparation of the 1994 Regional Energy Plan for SANDAG. Terms used in Table 1 are defined as follows: · Type of energy savings. These are the end-use or supply sectors affected by a given action measure. · Near-term andlong-term competitiveness. This represents generalized cost-effectiveness within 3-5 years for near-term measures, and 5-10 years for long-term measures. · Stability. This refers to potential volatility in a measure's ongoing operating and maintenance costs. · Technological maturity. This is the degree of proven commemial reliability in a measure. · Durability. This characterizes the relative length of a measure's useful life, which is the length of time it fulfills its intended functions. In the case of land-use measures, useful life is the length of time that the built feature exists after construction, e.g. an area's density would exist for the life of the neighborhood's buildings. Most land-use measures have high durability because they exist for several decades, e.g. 60-100 years. · Support for regional jobs. This notes those measures whose implementation would create jobs in the region. · Non-energy community benefits. These measures have notable non-energy benefits, such as transportation measures that reduce traffic congestion and pollutant emissions while also savings energy. · High and moderate ratings. Implementation cost, technological matudty, and durability are rated with "high" and "moderate" terms that represent qualitative judgment based on resource evaluations in the San Diego Regional Energy Plan and current technical literature. It is worth noting that alt action measures are rated favorably under all criteria. 709/100 8 6/18/02 / All of the measures in Table 1 have been feasibly implemented to varying degrees in projects throughout the San Diego region over the past 5-10 years, in fact, most of the land-use and transportation measures have gained acceptance as standard features in regional land development. The same is true for water conservation measures. Of the 12 action measures available to SPA developers, the building construction and solar measures are notable for two reasons: · They are the only measures whose implementation will be passed from the SPA developers onto merchant builders. · They are the only measures that have notable economic sensitivities. Therefore, any decision to choose these measures will be based on their economic and financial implications for developers and builders, and to some degree the positive marketing implications of having "environment-friendly" features in a project. Key variables on the economic side of this equation include: · Timing of efficiency investment. Because energy economics are constantly changing, the feasibility of a particular investment will be affected by the timing of that investment. For SPA developers choosing building or solar measures, the actual capital outlay by builders for the measures will not occur until some undefined point in the future. · Cost of energy. The basic hurdle for any efficiency measure is to produce energy savings at a cost beneath current energy prices. For example, any measure displacing electricity in Chula Vista today should be feasible if the cost of conserved energy is roughly 7C/kWh or less. However, recent events have shown how volatile energy prices can be and any investment decision has to take such uncertainty into consideration. · Applicable incentives. At any given point in time there are various government and utility financial incentives available for efficiency measures. However, the scope, amount, and eligibility requirements of these incentives change periodically and need to be monitored along with energy prices. 709/100 10 6/18/02 · Investment cfiteria. Each developer and builder will have their own set of criteria for determining whether an investment is financially acceptable. Factors such as interest rates, required retum on investment, and possible cost-sharing will vary among developem and builders. Considerations on the intangible marketing side of the equation include: · Public perception of energy and environmental issues. Public opinion reseamh shows consistent and growing support for energy efficiency. To the extent that a land development is perceived as energy conscious, its public reputation in the marketplace should be enhanced accordingly. · Ability to distinguish a product in the competitive market. Recent experience has also shown that land developments incorporating environment-friendly features ara able to successfully distinguish themselves among competing products in the marketplace, and achieve faster sales at premium prices in the process. Because of the variability in all of these factors, both economic and intangible, it is not possible to specify with certainty which building construction and/or solar measures will always be feasible. However, there is ample evidence that developers and builders are finding such measures increasingly feasible given the growing amount of investment in the measures. The latest energy crisis in Califomia has only accelerated this trend. Buildin.q Measures This elective action category gave SPA developers two options for reducing energy use in buildings that will ultimately be constructed in the SPAs: · Title 24 exceedence. The SPA developer works with the City to commit that a certain percentage of structures will exceed Title 24 energy standards by a certain amount. Both the pement of structures and amount of Title 24 exceedence are elective choices of the SPA developer. Measures to achieve the exceedence can include any combination of building design, construction materials, or equipment for space conditioning, water heating, or lighting. 709/100 11 6/18/02 · Energy ef~cient building program participation. The SPA developer works with the City to commit that a certain percentage of structures will participate at a specified level in a formal building energy efficiency program sponsored by a utility or comparable organization. Both the percent of structures and level of participation are elective choices of the SPA developer. Program participation would include the same types of measures described for Title 24 exceedence. Local developers and builders are already taking such actions with increasing regularity. San Diego Gas and Electdc reports that standard building practices in the region consistently exceed Title 24 by approximately 5%. Similarly, utility-sponsored efficiency incentive programs are often fully subscribed. Even before the recent energy price shocks in California, energy-efficient construction techniques and equipment were making good economic sense. Table 2 summarizes the latest national survey of energy-saving measures for the residential and commercial building sectors. As shown in the column entitled "Cost of Conserved Energy-S/kWh," there are a wide variety of highly cost-effective measures available in today's market. In fact, 62 of the 66 measures listed are cost-.effective in the San Diego region at present where Table 2 indicates their cost of conserved energy at or below $0.07/kWh. The Table 2 survey is consistent with general rules-of-thumb among building energy design professionals that most new residential and commercial construction can cost-effectively exceed Title 24 by as much as 10-20 percent. In fact, being able to cost-effectively achieve these levels has been confirmed by the exceedence terms of efficiency programs administered by SDG&E and organizations such as ConSol. Examples of components in these programs include engineered HVAC design, tight ducts, spectrally selective glass, third-party inspections and diagnostics, and home energy ratings. If SPA developers select one or both of the building measure options, and merchant builders are called upon to implement the commitment, one technical resource for evaluating the feasibility of specific packages of measures is the California Energy Commission (CEC) Database for Energy Efficient Resources (DEER). DEER is an electronic database of over 250 building energy measures with the latest information on measure capacities, efficiencies, useful lives, installed costs, and savings. DEER can be downloaded from the CEC's website (www.energy. ca.gov/deer). The CEC and San Diego Regional Energy Office (SDREO) also both operate databases of building measure financial incentives with the latest information on amounts and eligibilities. 709/100 12 6/18/02 Table 2 REPRESENTATIVE BUILDING MEASURE COSTS OF SAVINGS Table 2 Continued I~,~ ;;,=;,.a Gas Fd, ii~ HVAC N/A $4.40 Ind3~ct UO~tl~ng Ughlfng $0.03 N/A Elac~odele~ Lamps, Power Supplies and Lumlrmtms Ughfing $0.04 N/A Sulphur Ugh6ng Ughtlng $0,04 N/A Oenetel Servloe Halogen Infrared Reflac~ing Lamps Ugh~ng ~0.03 N/A Imlxov~l Da~lghUng ~ LJgh~ng $0.03 N/A Da~41ghtlng Devloea UghUng $0.0~ N/A Advanead Ugh6ng Dis'aaxs~aa Systems UgMing $0.04 N/A Plea~c Dow~lgM LumlnMrea UgMlng $0.00 N/A LED Ugh~ng Uphling $0.08 N/A ~,m~oy Sl'A~.° MulUfu~cOo~ Devices Office Eq $0.00 N/A High-Efficiency Padmged Refrigera~o~ Equipment RefdgeraUon $0.01 N/A Elec~ochmmlc c_~a~ng Shell $0.06 N/A Low. e Specially Sele~w~ Relmo6t VVIndow Fl~ms Shell $0.07 N/A GFX Drain Wate~ Heat Re~3vmy Device DHW $0.03 NIA Very Low-Flaw 8how~eads DHW $0.00 $0.00 l'hem~elpho~/Frea $iphoa Solar Water Heatem DHW $0.07 N/A ~omme~al Heat Pump Water Heatem DHW $0.03 N/A =b~sldentlal Heat Pump Clofi~ea Dfi~em /~pfdlance $0.09 N/A J~f~a~ic Clolhea Weahe~s Laund~ $2.04 ~ 6.40 =hotovcitalc Romlng (2,000 sqft home) Power $0.14 N/A =hotovMtek~ Roefblg (12,000 sqft com, bldg.) Pe,wer $0.14 N/A .ow~e Int~lor SurMces Shell $0.05 ~4.1[KI Note: This table is intended to be an illustrative sampling of building efficiency measures rather than an exhaustive inventory. Costs of savings for specific measures and bundles of measures wilt vary based on site-specific conditions. Source: Energy Saving Technologies & Practices for the Building Sector, Amedcan Council for an Energy-Efficiency Economy, 1998. 709/100 14 6/18/02 Solar Measures This category gave SPA developers two elective options for reducing grid-supplied energy demands from the buildings that will be constructed in the SPAs: · Solarthermalapplications. The SPA developer would work with the City to make a commitment that a certain pementage of structures will be equipped with solar thermal systems of a certain capacity. The percentage of structures and size of systems are elective choices of the SPA developer. Such systems may include domestic water heating and pool heating. · Solarpower applications. The SPA developer would work with the City to make a commitment that a certain percentage of structures will be equipped with solar photovoltaic (PV) power generation systems. The pement of structures and size of systems are elective choices of the SPA developer. The following examples provided by the SDREO give a snapshot of current residential economics for both types of solar applications: · Solar water heating in new home construction. Using Shea Home's pdcing for the SunSystem CopperSun ($2,250/dwelling installed), the $750 State rebate, today's natural gas prices ($1.60/therm), 200 therms/month of consumption (CEC data), and a 40% solar fraction, the homeowner is in positive cash flow from day one. · Photovoltaic (PV) power generation in new home construction. Using AstroPower's pricing quote for buildings ($4,200 for a 1.2 kW system, includes the 50% State rebate), $0.15/kWh cost of electricity, 7% loan rate for 30 years, 31% tax bracket, PV output of 1500 kWh/kW/year, and maintenance costs of $0.02/kWh, the homeowner comes out about breakeven over the length of the mortgage assuming electric rates rem·in high. This feasibility would improve propodionately as the number of involved homes and PV systems increase, e.g. 100 homes being equipped in one project. It should be noted that the initial cost of the PV system is considerably less for new construction than to retro-fit an existing house. Builders dealing directly with the manufacturers for large volumes of product obtain better prices. 709/100 15 6/18/02 Thera ara currently four financial incentives available to homeowners who are installing PV systems in California: · The Renewable Energy Buy-Down Program. This CEC program offers cash rebates on eligible renewable energy electric generating systems of up to $4,500 per kilowatt or 50% of an eligible system pumhase price (whichever is less). · TheCaliforniaPropertyTaxExemptionforSolarSystems. Exempts the additional value of PV systems vs. conventional systems from property tax assessments. · Battery Rebate Program (SB-1345). A CEC grant program that supports the purchase and installation of solar energy systems including back up batteries for PV systems. · The California Tax Credit (SB-17). Effective October 9, 2001, allows a tax credit of either 15% of the purchase and installation of a solar energy system or 7.5% of the net cost after the buy-down rebate (whichever is less). As with energy-efficient construction generally, the solar cost/benefit equation has steadily improved in recent years. California's recent energy crises has further underscored the attractiveness of this option. A prominent regional example is the Scripps Ranch project being constructed by Shea Homes, where 297 homes will reportedly have solar water heating systems and 100 homes will have PV systems. Although large-scale projects such as the Scripps Ranch project ara demonstrating that residential solar PV is increasingly feasible, the cost-effectiveness of this option continues to be sensitive to economies of scale for equipment purchases and the competing price of grid-delivered electricity. If local electdc rates begin to increase again and solar PV systems can be purchased in quantity, then this option deserves serious consideration. At a minimum, it warrants close ongoing monitoring of relevant conditions. 709/1 O0 16 6/18/02 The feasibility of PVs in commemial buildings is even better than residential because businesses can take advantage of state and federal incentives not available to households. For example, a 100 kW system would cost an estimated $235,000 after all incentives and be able to generate electricity for approximately 10C/kWh (soume: SDREO). Financial incentives currently available for solar PV in general include: · San Diego Self-Generation Program. This SDREO program offers rebates of $4.50/watt up to 50% of eligible project costs for PV systems between 30 kW and 1 MW. This incentive program can be used or the CEC Emerging Renewable Buy-Down Program, but not both. · California Energy Commission Emerging Renewable Buydown Program. The CEC, through its Emerging Renewable Buydown Account, offers rebates of up to $4.50/watt or 50% of the cost for eligible renewable energy generation equipment, including solar PV. · California Property Tax Exemption. This law exempts the additional value of solar systems versus conventional systems from property tax assessments. · Federal Tax Incentives. There are two federal tax incentives available to commercial entities to encourage private investment in solar energy equipment and systems: a 10% investment tax credit and a 5-year accelerated depreciation schedule. If SPA developers select one or both of the solar options, and builders are called upon to implement the commitment, they can receive valuable technical assistance from SDREO and CEC solar programs, along with resources provided by the California Solar Energy Industries Association. 2.3 Indicators The second step in customizing INDEX to Chula Vista was the selection of indicators to gauge key characteristics of the 12 action measures. Indicators are quantitative measurements of community characteristics or conditions. They focus on small pieces of larger systems to give people insight into the larger situation. In community planning, indicators are usually focused on conditions related to key goals and policies. The premise is that plan preparation and implementation can be valuably informed by a standard set of policy based measurements that are used to gauge planning actions. 709/100 17 6/18/02 Critedon's INDEX software is designed to suppod community planning by applying indicators geographically to current conditions and proposed changes. Figure 1 illustrates the integration of INDEX indicators into a typical community planning process. In the case of Chula Vista, the software has been focused on implementation of the CO2 Reduction Plan through energy efficient land-use planning. Given this objective, project participants selected 52 indicators to address the energy and emission aspects of proposed land developments. The indicators are given in Table 3 with definitions, units of measurement, and applicable land-uses. These indicators were used to score the baseline and SPA energy values, and quantify the amount of air quality and climate change benefits embodied in the final SPA plans. 2.4 Baselines The next step in the pilot test was calculation of the baseline values that SPA plans would be judged against. The baseline represents "pra-efficiency" approaches to land development without any special effort to reduce energy use or emissions. To set the baseline, a group of three Chula Vista neighborhoods built in the 1970s and 80s was measured with the INDEX indicators, and a weighted average score was calculated for each indicator to constitute a baseline value for that indicator. In choosing baseline neighborhoods, the City staff looked for areas that would be comparable to those areas currently being developed in the community. The baseline areas needed to have land-use mixes with individual design features similar to current SPA proposals. The selected baseline neighborhoods included Terra Nova, and two neighborhoods in the College Estates area, all shown in Figure 2. For purposes of the pilot study, these neighborhoods are referred to as College Estates I and II. These neighborhoods were not considered to be practical baselines for three action measures: building construction, solar use, and vegetation. This is because no records exist to document these conditions at the time of the neighborhoods' original development. Instead, these measures were addressed as follows: · Building efficiency. This category includes Title 24 exceedence and participation in building efficiency programs sponsored by utilities or similar organizations. The baseline was set at zero excaedence and zero program participation under the assumption that no extra efforts were made to achieve higher efficiencies at the time of original development in the 1970s and 80s. 709/100 18 6/18/02 Table 3 CHULA VISTA INDICATORS Appticabta Land-Use Non- Indicator Indicator Definition Residential Residential 1. Population Total residents, 2. Households Total dwelling units. 3. Employment Total jobs. 4. Land area Total area in acres. 5, Development footprint Total developed acres (exclusive of open space) divided by total residents~ 6. Street network extent Total street centerline distance divided by total residents. 7. Amenity proximity (retail) Average travel distance from all dwellings to closest amenity (retail) in ft. 8. Single-family dwelling density Single-family dwelling units per net acre of residential land. 9. Multi-family dwelling density Mufti-family dwelling units per net acre of residential land, 10. Average residential density Dwelling units per net acre of residential land. 11. Employment density Number of employees per net acre of nonresidential land, 12. Commercia~ building density Average commercial floor area ratio. 13. Use mix Proportion of dissimilar land uses among adjacent one-acro gdd cells (scale of 0 - I). 11 l'~. Use balance Propodions of land uses, by land area, within total area (scale of 0 - 1). · Neigh borhood completeness Pement of key uses present or adjacent (see footnote 1 ). 16. B~ock size Average size of blocks in acres. 17. Pedestrian orientation of Average non-residential building set-back from buildings sidewalks in fl· 18. Sidewalk and trail connectivity Ratio of sidewalk and trail intersections vs, intersections and dead-ends (scale of 0-1 ). 19. External access for pedestrians Average ft, between pedestrian access points on area boundary in fi. J 20. Extemalaccessforvehicles Averagelt. belween vehicle access points on area 21. Street con neclivity Ratio of street intersections vs. intersections and cull-de-sacs longer than 150 ff. (scale of 0 - 1 ). 22._ Street network density Length of street centedines in miles per sq.mi. 709/100 20 6/18/02 Table 3 Continued Applicable Land-Use Non- Indicator Indicator Definition Residential Residential , 23. Housing proximity to transit Average travel distance from all dwellings to closest transit stop. 24. Employment proximity to transit Average travel distance from all businesses to closest transit stop. 25. Transit-oriented residential Average number of dwellings per net residential acre density within 1/4 mi. walk of transit stops. 26. Transit-oriented employment Average number of employees per net non-residential density acre within 1/4 mi. walk of transit stops. 27. Title 24 exceedence Percent of structures committed to exceeding Title 24 see footnote 2), 28. Building efficiency program Percent of structures committed to building efficiency participation program participation (see footnote 3). 29. Solar thermal applications Percent of structures committed to solar thermal applications (see footnote 4). 30. Solar power applications Percent of structures committed to solar power applications. 31. Vegetative CO2 uptake Total CO2 uptake from street trees in lbs/yr. 32, Pedestrian network coverage Ratio of total pedestrian network centedine distance vs. total street centafline distance. 33. Pedestrian crossing distance Average street width curb-to-curb in fi, 34, Pedestrian route directness Average ratio of shortest walkable distance from multiple odgins to designated nodes vs. straight line distance between same points. 35. Bicycle network coverage Percent of streets bikeable (total secondar7 street centerline distance plus centadine distance of major streets with designated routes. 36. Transit service coverage Miles of transit routes divided by total acres. 37. Daily auto driving Vehicle miles traveled/capita/day. 38. Residential water use Indoor and outdoor residential water consumption in v' gals per day per capita, including effects of xeriscaping. [39. Parkspace supply Acres of park per 1,000 residents, v' 0. Put'proximity ~ Average distance from all dwellings to closest park in fi, 41. Open space supply Percent of total land area dedicated to open space see footnote 5). 42. Open space contiguity Proportion of adjacent open space designations among a grid of one-acre ceils (scale of 0 - 1). 43. Housing energy use Total energy use in residences in MMBtu/capita/year. v' 709/100 21 6/18/02 Table 3 Continued Applicable Land-Use Non- Indicator Indicator Definition Residential Residential 44. Household transportation Total energy use in household traw~l in energy use M MBtu/capita/year. 45. Nonresidential building energy Total energy use in nonresidential buildings in use MMBtu/capila/year. 46. Total energy use Tolal residential and nonresidential energy use in MM Blulcapita/year. 47, NOx emissions NOx emissions in lbs./capita/year. 48. SOx emissions SOx emissions in lbs./capita/year. 49. HC emissions HC emissions in lbs./capita/year. 50. CO emissions CO emissions in lbs./capita/year. 51. PM emissions PM emissions in Ibs,/capita/year, 52. CO2 emissions CO2 emissions in lbs./capita/year. 1. Key uses for "neighborhood completeness" include: fire/police station, library, park, school, and/or general commercial/retail uses. 2. Title 24 exceedence can include building design, construction material, space conditioning, water heating, and lighting measures for buildings not participating in a formal energy efficiency program sponsored by utilities or comparable organizations. 3. Building energy efficiency program padicipation through utilities or comparable organizations can include space conditioning, lighting, water heating, and appliance measures. 4. Solar thermal applications can include domestic hot water heating and pool heating. 5. Land area to be included in open space calculation includes any off-site open space associated with a specific SPA plan. 709/100 22 6/18/02 · Solar use. This includes thermal applications for domestic water and pool heating, and PV power generation applications. In both cases the baseline was set at zero under the assumption that very little solar was installed in the 1970s and 80s in such developments. · Vegetation, This category includes the use of street trees to accomplish air pollution and greenhouse gas uptake. The baseline was set at zero to reflect limited tree planting practices at the time of original development. 2.5 Proposed SPA Plans The final component of the pilot test was the group of proposed SPAs being modeled for air quality improvement purposes. As shown in Figure 3, the SPAs selected by City staff for the pilot test included: · Otay Ranch Village Six. This is a 386-acre project containing approximately 2000 dwellings and a mix of commercial and public uses. · Otay Ranch Village Eleven. This 489-acre project includes about 2300 dwellings and commercial and public uses. · EastLake III. This is a 748-acre project that includes a 259-acre component known as the Woods with approximately 660 dwellings; and the Vistas, a 229-acre area of about 1400 dwellings and a mix of commercial and public uses. As originally proposed, these SPAs already contained some level of energy-efficient features that improve air quality and reduce CO2 emissions. The challenge of the pilot test was to determine if additional benefits can be identified and achieved. 709/100 24 6/18/02 3. PILOT TEST 3.1 Baseline Values Having assembled the components of the pilot test, the first step in INDEX modeling was the calculation of the basetine values. As described in the previous section, these are "pm-efficiency" indicator scorns representative of land development practices in the 1970s and 80s. These scores form a baseline that current SPA proposals can be judged against. As shown in Table 4, baseline values were computed by measuring the three pm-efficiency neighborhoods and then calculating a weighted average score for each indicator. Exceptions to the weighted average occur with six indicators as noted in Table 4, where anomalous conditions in the neighborhoods produced scorns that could not be considered typical. In these instances, City staff adjusted the values to more common or practical levels (see Table 4 footnotes). To assist in interpreting the baseline scores, Table 4 also includes comments on the scores' relationship to common pdnciples of energy-efficient land-use planning. 3.2 Original SPA Proposals Having set baseline values, the next step was INDEX modeling of the original SPA proposals to obtain their indicator scores. Those SPA scores were then compared to the baseline values as shown in Table 5. The principal finding from the first round of INDEX modeling is that all three original SPA plans are more energy-efficient than the baseline. Village Six is about 9% more energy-efficient than the baseline, Village Eleven is about 1 1% more efficient, and EastLake 3 is about 5% better. 709/100 26 6/18/02 Notable characteristics of the SPAs and differences between their scores and the baseline are summarized below by element category: · Demographics. Villages Six and Eleven are relatively similar, each with about 350-500 acres of land accommodating 6,000-7,000 residents, and a relatively small amount of non-residential uses equating to 250-300 jobs. EastLake Ill is notably larger in land area at approximately 750 acres, and in employment at about 800 jobs. · Land-use. Villages Six and Eleven generally score better than EastLake III in comparison to baseline values. Villages Six and Eleven have favorable residential densities, neighborhood completeness, circulation connectivity, and proximity to transit. EastLake III enjoys better employment density and the highest neighborhood completeness, but unfavorable scores in residential density and some circulation features, e.g. walk distance to retail and transit-oriented residential density. In general, all three SPAs achieve their energy and emissions advantage over the baseline in this element primarily through higher total population densities, which reduces space conditioning, travel, and infrastructure energy use. · Transportation. There was little change between SPA scores and baseline values in this element, except for significant increases in pedestrian network coverage in all three SPAs, and a drop in transit service coverage in Village Eleven. · Infrastructure. Villages Six and Eleven residential water use scored close to the baseline, while EastLake III was notably higher due to its lower density, larger lots whose greater amount of landscaping is estimated to consume more water. · Environment. Village Six has a park space supply score notably below the City standard (but is nonetheless meeting its park demand through the provision of a seven-acre neighborhood park on-site consistent with City requirements, and the community park acreage is being met off-site pursuant to the Otay Ranch General Development Plan). Villages Six and Eleven improved park proximity for their residents in comparison to the baseline, but that distance worsened in EastLake I1[. Village E]even's open space contiguity score is unusually Iow, suggesting unfavorable fragmentation of spaces (generally 0.5 or higher is desirable). This element also contains the energy and emission scores that summarize the combined effects of land-use, buildings, transportation, and infrastructure. Of the ten energy and emission indicators, the principal indicator is total energy use per year by residents and employees combined. All three SPAs exceed the baseline in efficiency terms, largely due to higher 709/1 O0 34 6/18/02 population densities. The SPAs' favorable energy scores are mirrored by similar reductions in pollutant and greenhouse gas emissions. 3.3 Modified SPA Proposals The next step in the pilot test was an invitation for developers to submit modified SPA plans that achieved even greater energy efficiency and air quality than the original proposals. SPA developers had the following options available for modifying their plans in ways that further increased energy efficiency and improved air quality: · Land-use density. This is the intensity of use on properties measured in dwelling units per acre for residential uses and employees per acre for non-residential uses. Extensive research nationally and internationally has conclusively demonstrated that the strongest urban planning technique for increasing energy efficiency is increasing land-use density. Density increases produce significant energy savings in building space conditioning, travel, and infrastructure operations. Although it may have been too late for major density changes in the three test SPAs, this option should be examined in future SPA processes because of its sizable benefits. · Land-usediversity. Thisisthemixofresidentialand non-residential uses in anarea. Research has also demonstrated that another important technique for increasing energy efficiency is increasing the diversity of land-uses. Greater diversity produces energy savings in the same space conditioning, travel, and infrastructure end-uses as density does through better use of system capacities. Again, it may have been too late to consider diversify changes in the three test SPAs, but the option warrants future consideration in other SPAs. · Multimodal circulation design. Another strong technique for saving energy in land development is designing an efficient and convenient multimodal cimulation system. Such a system is composed of features that allow walking, biking, and transit use in addition to auto driving. Important components include relatively dense street networks, completeness of sidewalks, and relatively direct routes from common origins to popular destinations. As with density and diversity, it may have been too late for significant circulation changes in the test SPAs. · Building construction standards. SPA developers may opt for a commitment to reduce building energy use by exceeding Title 24. Developers could propose the amount of Title 24 exceedence per building type and the number of buildings that will participate in such exceedence. A developer could exercise this option by committing to a utility or comparable energy efficiency 709/1 O0 35 6/18/02 i. ~.'.~ ~t program that offers beyond-code services, or by simply committing that merchant builders will achieve the stipulated exceedence by means of their own choosing. · Solar systems. SPA developers could opt to reduce grid-supplied energy by installing solar thermal or PV systems in buildings. Developers could propose the type and capacity of systems to be used, and the number of structures that will receive such systems. · Tree planting. This category allowed SPA developers to offer additional tree planting that will offset greenhouse gas emissions. Selection of this option will not improve a SPA's energy efficiency or air pollutant emissions, but will help mitigate climate change. After consideration of these options, the test SPA developers voluntarily selected the following action measures to improve their projects' energy efficiency and air quality: · EastLake IlL 72 single-family homes will achieve a 15% Title 24 exceedence using ComfortWise, SDG&E California Energy Star Program, or equivalent program; 255 single-family homes will achieve a 15% Title 24 exceedenca using the SDG&E California Energy Star Program; and an additional 855 trees will be planted. · Otay Ranch Village Six. 482 single-family homes will achieve a 10% Title 24 exceedence using designeflbuilder-selected measures; and an additional 792 trees will be planted. · Otay Ranch Village Eleven. No additional measures selected. With these modifications, the SPA plans were modeled again to recalculate indicator scores and identify final energy savings and air quality improvements. These results are shown in Table 6 indicating an approximate 1% energy use reduction for EastLake III and Village Six between original and modified plans. Also, the additional tree planting in EastLake III and Village Six resulted in beneficial CO2 uptake increases of 25% and 22%, respectively. 36 3,4 Final Results Based on the modified SPA plans, the pilot test's final results for energy savings, air quality improvements, and greenhouse gas reductions are as follows: Total energy use (MMBtu/yr/capita) 75.56 68.25 67.39 71.19 % energy reduction - - - 9.70 10.80 5.80 Total air pollutant emissions (Ibs/ydcapita) 544.85 543.68 543.59 544.75 % air pollutant emissions reduction - - - 0.21 0.23 0.01 ' Total greenhouse gas emissions 10,493.00 9,873.00 9,833.00 10,404.00 (Ibs/yr/capita) ' % greenhouse gas emissions reduction - - - 5.90 6.29 0.85 709/100 39 6/18/02 EASTLAKE III SECTION 11.7 AIR QUALITY IMPROVEMENT PLAN 11.7.1 Introduction Chula Vista's Growth Management Ordinance requires all major development projects (50 dwelling units or greater) to prepare an Air Quality Improvement Plan (AQIP). On November 14, 2000, the City Council adopted the Carbon Dioxide (CO2) Reduction Plan, that included twenty action measures intended to promote clean fuel vehicles, alternatives to driving, transportation efficient land use planning and energy efficient building construction. Twelve of the action measures directly relate to land use planning and air quality improvements. The AQIP includes implementation of applicable measures identified in the CO2 Reduction Plan. The City is developing guidelines for the preparation and implementation of required AQIP's. A pilot study was initiated to identify and evaluate the relative effectiveness and costs of applying various design and energy conservation features in new development projects. One of the goals of the study is to identify implementation measures that reduce air pollutants and CO2 emissions and exceed existing mandates wherever possible including the Title 24 Energy Code. The INDEX computer model, developed by Criterion Planners/Engineers, was used in the pilot study to analyze the project. The twelve land use measures identified in the CO2 Reduction Plan were translated into action measures for the pilot study as follows: Land-Use 1. Compact development - minimize sprawl. 2. Density - intensity of land use. 3. Diversity - mix and variety of uses. 4. Orientation toward pedestrian and bicycles. 5. Orientation toward transit. 709~023 1 ATTACHMENT 9 Buildings 6. General energy design and equipment - improve efficiency. 7. Solar Use - solar thermal applications and power generation. 8. Vegetation - uptakes air pollutants and greenhouse gases. Transportation 9. Pedestrian Facilities - system design and improvements. 10. Bicycle facilities - system design and improvements. 1 1. Transit facilities - system design and improvements. Infrastructure 12. Water Use - land planning that reduces water consumption. The INDEX Pilot Test: SPA Air Quality Improvement Plans report prepared by Criterion Planners/Engineers identifies various options available to improve energy efficiency and air quality. See Appendix. 11.7.2 Purpose The purpose of the EastLake III Air Quality Improvement Plan (AQIP) is to reduce emissions and energy use and to fulfill the requirements of the Growth Management Ordinance. The AQIP addresses design methods to reduce vehicle tdps, maintain or improve traffic flow, and reduce vehicle miles traveled. It also identifies a means of reducing emissions (direct or indirect) from the project, and defines a program to monitor compliance. 11.7.3 Regulatory Framework Federal, state and local agencies share responsibilities for developing and implementing air quality regulations and improvement plans. The federal and state agencies have established air quality standards and requirements for compliance. The local agencies focus on adopting strategies and regulations to achieve compliance with the state and federal mandates, Specific air quality analysis for the project is included in the Environmental Impact Report prepared for the EastLake Ill SPA Plan. As mentioned eadier, the City of Chula Vista's Growth Management Ordinance requires preparation and implementation of an Air Quality Improvement Plan (AQIP) for those projects with 50 dwelling units or greater, 709~23 2 6/18/02 11.7.3 Project Description The Project encompasses approximately 793 acres located within the City of Chuta Vista, and is bordered by the Rolling Hills Ranch development to the north, and the planned EastLake Business Center II, EastLake Trails subdivision, and Otay Ranch Village Eleven to the west. The Upper and Lower Otay Reservoirs form the eastern boundary of the Project. The planning area consists of two subdivisions identified in the EastLake I~1 General Development Plan as EastLake Woods and EastLake Vistas. The Project area also includes the property located directly adjacent to the southern boundary of the Olympic Training Center, and is referred to as the Panhandle Site, which is designated as part of a future University of California campus. Specific land use has not been determined for the Panhandle Site and, therefore, this area was not included in this study. A separate AQIP will be prepared for the site once more specific proposed land uses are determined. Proposed land uses for the planning area are summarized in Figure 1. As was indicated by the initial INDEX scores, the design of the EastLake Ill SPA contains energy- efficient features that improve air quality and reduce CO2 emissions beyond levels that are found in traditional suburban communities. 11.7.4 Air Quality Indicators As described in the attached report, twelve action measures identified in the Carbon Dioxide (CO2) Reduction Plan were used to select 52 key indicators. The indicators gauge the key characteristics of the twelve action measures and focus on the goals of the pilot study. The 52 indicators were selected to address the energy efficiency and emission reduction aspects of the proposed land development. 11.7.5 Project Evaluation Baseline Values The first step in INDEX modeling was the calculation of the baseline values. These are "pre-efficiency" indicator scores representative of land development practices in the 1970s and 80s. These scores form a baseline that the EastLake III proposal was judged against. 709/023 3 6/18/02 !t,, ?/ 51te Utilization Plat PQ-2 VVR-1 WR-5 WR-2 WR-4 WR-6 & EASTI KE !11 FIGURE 1 ~lanned community by The EastLake Company As shown in Table 1, baseline values were computed by measuring the three pre-efficiency neighborhoods and then calculating a weighted average score for each indicator. Exceptions to the weighted average occur with six indicators as noted in Table 1, where anomalous conditions in the neighborhoods produced scores that could not be considered typical. In these instances, City staff adjusted the values to more common or practical levels (see Table 1 footnotes). To assist in interpreting the baseline scores, Table 1 also includes comments on the scores' relationship to common principles of energy-efficient land-use planning. Original EastLake III Proposal Having set baseline values, the next step was INDEX modeling of the original EastLake Ill proposal to obtain its indicator scores. Those EastLake III scores were then compared to the baseline values as shown in Table 2. The principal finding from the first round of INDEX modeling is that EastLake III is about 5% more energy efficient than the baseline. Notable characteristics of EastLake III and differences between its scores and the baseline are summarized below by element category: · Land-use. EastLake Ill enjoys favorable employment density and high neighborhood completeness, but unfavorable scores in residential density and some circulation features, e.g. walk distance to retail and transit-oriented residential density. In general, EastLake III achieves its energy and emissions advantage over the baseline in this element primarily through higher total population densities, which reduces space conditioning, travel, and infrastructure energy use. · Transportation. There was little change between EastLake III scores and baseline values in this element, except for significant increases in pedestrian network coverage. · Infrastructure. EastLake Ill was notably higher than the baseline due to its larger lots whose greater amount of landscaping is estimated to consume more water. 709/023 5 6/1 6/02 · Environment. This element contains the energy and emission scores that summarize the combined effects of land-use, buildings, transportation, and infrastructure. Of the ten energy and emission indicators, the principal indicator is total energy use per year by residents and employees combined. EastLake III exceeded the baseline in efficiency terms, largely due to higher population density. The project's favorable energy scores are mirrored by similar reductions in pollutant and greenhouse gas emissions. Modified EastLake III Proposal The next step in the pilot test was an invitation for developem to submit modified SPA plans that achieved even greater energy efficiency and air quality than the original proposals. SPA developers had the following options available for modifying their plans in ways that further increased energy efficiency and improved air quality: · Land-use density. This is the intensity of use on properties measured in dwelling units per acre for residential uses and employees per acre for non-residential uses. Extensive reseamh nationally and internationally has conclusively demonstrated that the strongest urban planning technique for increasing energy efficiency is increasing land-use density. Density increases produce significant energy savings in building space conditioning, travel, and infrastructure operations. Although it may have been too late for major density changes in the three test SPAs, this option should be examined in future SPA processes because of its sizable benefits. · Land-usediversity. Thisisthemixofresidentialand non-residential uses in an area. Research has also demonstrated that another important technique for increasing energy efficiency is increasing the diversity of land-uses. Greater diversity produces energy savings in the same space conditioning, travel, and infrastructure end-uses as density does through better use of system capacities. Again, it may have been too late to consider diversity changes in the three test SPAs, but the option warrants future consideration in other SPAs. · Multimodal circulation design. Another strong technique for saving energy in land development is designing an efficient and convenient multimodal cimulation system. Such a system is composed of features that allow walking, biking, and transit use in addition to auto driving. Important components include relatively dense street networks, completeness of sidewalks, and relatively direct routes from common odgins to popular destinations. As with density and diversity, it may have been too late for significant circulation changes in the test SPAs. 709/023 13 6/18/02 · Building construction standards. SPA developers may opt for a commitment to reduce building energy use by exceeding Title 24. Developers could propose the amount of Title 24 exceedence per building type and the number of buildings that will participate in such exceedence. A developer could exercise this option by committing to a utility or comparable energy efficiency program that offers beyond-code services, or by simply committing that memhant builders will achieve the stipulated exceedence by means of their own choosing. · Solar systems. SPA developers could opt to reduce grid-supplied energy by installing solar thermal or PV systems in buildings. Developers could propose the type and capacity of systems to be used, and the number of structures that will receive such systems. · Tree planting. This category allowed SPA developers to offer additional tree planting that will offset greenhouse gas emissions. Selection of this option will not improve a SPA's energy efficiency or air pollutant emissions, but will help mitigate climate change. After consideration of these options, EastLake III voluntarily selected the following action measures to improve its energy efficiency and air quality: 72 single-family homes will achieve a 15% Title 24 exceedence using ComfortWise, SDG&E California Energy Star Program or equivalent program; 255 single-family homes will achieve a 15% Title 24 exceedence using the SDG&E California Energy Star Program; and an additional 855 trees will be planted. With these modifications, EastLake Ill was modeled again to recalculate indicator scores and identify final energy savings and air quality improvements. These results are shown in Table 3 indicating an approximate 1% energy use reduction for EastLake III. This is in addition to the 4.8% energy use reduction between the original EastLake III plan and the baseline. 14 Final Results Based on the modified EastLake Ill plan, the final results for energy savings, air quality improvements, and greenhouse gas reductions are as follows: Baseline EastLake III Total energy use (MMBtu/yr/capita) 75.56 71.19 % energy reduction - - - 5.8 Total air pollutant emissions (Ibs/yr/capita) 544.85 544.75 % air pollutant emissions reduction - - - 0.01 Total greenhouse gas emissions (Ibs/yr/capita) 10493 10404 % greenhouse gas emissions reduction - - - 0.85 11.7.6 Implementation Measures The following Air Quality Measures will be implemented in EastLake IIh 1. Building Ener,qy Efficiency Program & Title 24 Exceedence: EastLake Woods - 72 single-family homes will participate in ComfortWise, SDG&E California Energy Star Program or equivalent program resulting in approximately 15% Title 24 exceedenoe. EastLake Woods - 255 single-family homes will participate in the SDG&E California Energy Star Program resulting in approximately 15% Title 24 exceedence. Participation in building efficiency programs will be confirmed and coordinated with the Building Division and the GreenStar Program Coordinator. To further promote the AQIP, the Master Developers will encourage all merchant builders to participate in a building efficiency program. t7 2. Additional Tree Plantinq to offset Greenhouse Gas Emissions. In addition to the 3,399 street trees originally proposed, another 855 trees will be planted within the slopes and other open space areas as follows: EastLake Woods - 262 trees EastLake Woods West - 233 trees EastLake Vistas - 360 trees The Master Developer shall obtain cedification by a Registered Landscape Architect that additional trees have been included on the Master Landscape Plan for EastLake Ill. 3. Comply with Section 4.8.5 Mitigation Measures, in EastLake Ill Woods and Vistas Replanning Program Final Subsequent Environmental Impact Report #01-01. June 2001. 11.7.7 References EastLake III Woods and Vistas Replanning Program Final Subsequent Environmental Impact Report (EIR #01-01); June 2001, prepared by RECON. 11.7.8 Appendix Criterion Planners/Engineers, INDEX Pilot Test: SPA Air Quality Improvement Plans, May 2002. 709/023 18 6/18/02 OTAY RANCH VILLAGE SIX SECTION 11.7 AIR QUALITY IMPROVEMENT PLAN 11.7.1 Introduction Chula Vista's Growth Management Ordinance requires all major development projects (50 dwelling units or greater) to prepare an Air Quality Improvement Plan (AQIP). On November 14, 2000, the City Council adopted the Carbon Dioxide (CO2) Reduction Plan, that included twenty action measures intended to promote clean fuel vehicles, alternatives to driving, transportation efficient land use planning and energy efficient building construction. Twelve of the action measures directly relate to land use planning and air quality improvements. The AQIP includes implementation of applicable measures identified in the CO2 Reduction Plan. The City is developing guidelines for the preparation and implementation of required AQIP's. A pilot study was initiated to identify and evaluate the relative effectiveness and costs of applying various design and energy conservation features in new development projects. One of the goals of the study is to identify implementation measures that reduce air pollutants and CO2 emissions and exceed existing mandates wherever possible including the Title 24 Energy Code. The INDEX computer model, developed by Criterion Planners/Engineers, was used in the pilot study to analyze the project. The twelve land use measures identified in the CO2 Reduction Plan were translated into action measures for the pilot study as follows: Land-Use 1. Compact development - minimize sprawl. 2. Density - intensity of land use. 3. Diversity - mix and variety of uses. 4. Orientation toward pedestrian and bicycles. 5. Orientation toward transit. 709/022 1 ATTACHMENT 10 Buildings 6. General energy design and equipment - improve efficiency. 7. Solar Use - solar thermal applications and power generation. 8. Vegetation - uptakes air pollutants and greenhouse gases. Transportation 9. Pedestrian Facilities - system design and improvements. 10. Bicycle facilities - system design and improvements. 11. Transit facilities - system design and improvements. Infrastructure 12. Water Use - land planning that reduces water consumption. The INDEX Pilot Test: SPA Air Quality Improvement Plans report prepared by Cdtedon Planners/Engineers identifies various options available to improve energy efficiency and air quality. See Appendix. 11.7.2 Purpose The purpose of the Otay Ranch Village Six Air Quality Improvement Plan (AQIP) is to reduce emissions and energy use and to fulfill the requirements of the Growth Management Ordinance. The AQIP addresses design methods to reduce vehicle trips, maintain or improve traffic flow, and reduce vehicle miles traveled. It also identifies a means of reducing emissions (direct or indirect) from the project, and defines a program to monitor compliance. 11.7.3 Regulatory Framework Federal, state and local agencies share responsibilities for developing and implementing air quality regulations and improvement plans. The federal and state agencies have established air quality standards and requirements for compliance. The local agencies focus on adopting strategies and regulations to achieve compliance with the state and federal mandates. Specific air quality analysis for the project is included in the Environmental Impact Report prepared for the Otay Ranch Village Six SPA Plan. As mentioned earlier, the City of Chula Vista's Growth Management Ordinance requires preparation and implementation of an Air Quality Improvement Plan (AQIP) for those projects with 50 dwelling units or greater. 709~022 2 6/18/02 11.7.4 Project Description The Project encompasses approximately 386.4 acres located within the Village Six SPA of the Otay Ranch GDP. Land uses include single-family residential, multi-family residential, mixed-use commercial and residential, parks, schools, Community Purpose Facilities (CPF), and open space. Proposed land uses for the planning area are summarized in Figure 1 based on gross acreages. McMillin's portion consists primarily of single-family and multi-family residential construction, a 0.8~acre common usable open space area, a 32.5-acre pdvate high school, and an 11.5-acre chumh site. The lots being developed by McMillin are located in the northwestern and southeastern most sections of Village Six. The Otay Ranch Company's portion of Village Six includes single-family and multi-family residential construction, a 7.6-acre neighborhood park, a 10-acre elementary school, mixed-use commercial and residential development, two CPF sites, and open space. The lots being developed by Otay Ranch Company are located in the northeastern and southwestern most sections of Village Six. Otay Ranch Village Six has been designed as a neo-traditional transit-oriented urban village~ It contains higher density development, a pedestrian friendly path and trail network and provision of transit services. As was indicated by the initial INDEX scores, the design of the Otay Ranch Village Six SPA contains energy-efficient features that improve air quality and red uce CO2 emissions beyond levels that are found in traditional suburban communities. 11.7,4 Air Quality Indicators As described in the attached INDEX pilot test report, twelve action measures identified in the Carbon Dioxide (CO2) Reduction Plan were used to select 52 key indicators. The indicators gauge the key characteristics of the twelve action measures and focus on the goals of the pilot study. The 52 indicators were selected to address the energy efficiency and emission reduction aspects of the proposed land development. 709/022 3 6/18/02 Site Utilization Plan / Village Six OTAY RANCH FIGURE 1 4 11.7.5 Project Evaluation Baseline Values The flint step in INDEX modeling was the calculation of the baseline values. These are "pre-efficiency" indicator scores representative of land development practices in the 1970s and 80s. These scores form a baseline that the Village Six proposal was judged against. As shown in Table 1, baseline values were computed by measuring the three pre-efficiency neighborhoods and then calculating a weighted average score for each indicator. Exceptions to the weighted average occur with six indicators as noted in Table 1, where anomalous conditions in the neighborhoods produced scores that could not be considered typical. In these instances, City staff adjusted the values to more common or practical levels (see Table 1 footnotes). To assist in interpreting the baseline scores, Table 1 also includes comments on the scores' relationship to common principles of energy-efficient land-use planning. Original Village Six Proposal Having set baseline values, the next step was INDEX modeling of the original Village Six proposal to obtain its indicator scores. Those Village Six scores were then compared to the baseline values as shown in Table 2. The principal finding from the first round of INDEX modeling was that Village Six is about 9% more energy-efficient than the baseline. Notable characteristics of Village Six and differences between its scores and the baseline are summarized below by element category: · Land-use. Village Six has favorable residential densities, neighborhood completeness, circulation connectivity, and proximity to transit. In general, Village Six achieves its energy and emissions advantage over the baseline in this element primarily through higher total population densities, which reduces space conditioning, travel, and infrastructure energy use. · Transportation. There was little change between Village Six scores and baseline values in this element, except for significant increases in pedestrian network coverage. · Infrastructure. Village Six residential water use scored close to the baseline. 709/022 5 6/18/02 · Environment. Village Six has a park space supply score notably below the City standard (but is nonetheless meeting its park demand through the provision of a seven-acre neighborhood park onsite consistent with City requirements, and the community park acreage requirement is being met off-site pursuant to the Otay Ranch General Development Plan). Village Six improved park proximity for residents in comparison to the baseline. This element contains the energy and emission scores that summarize the combined effects of land-use, buildings, transportation, and infrastructure. Of the ten energy and emission indicators, the principal indicator is total energy use per year by residents and employees combined. Village Six exceeded the baseline in efficiency terms, largely due to higher population densities. Favorable energy scores are mirrored by similar reductions in pollutant and greenhouse gas emissions. Modified Village Six Proposal The next step in the pilot test was an invitation for developers to submit modified SPA plans that achieved even greater energy efficiency and air quality than the original proposals. SPA developers had the following options available for modifying their plans in ways that further increased energy efficiency and improved air quality: · Land-use density. This is the intensity of use on properties measured in dwelling units per acre for residential uses and employees per acre for non-residential uses. Extensive research nationally and internationally has conclusively demonstrated that the strongest urban planning technique for increasing energy efficiency is increasing land-use density. Density increases produce significant energy savings in building space conditioning, travel, and infrastructure operations. Although it may have been too late for major density changes in the three test SPAs, this option should be examined in future SPA processes because of its sizable benefits. · Land-use diversity. This is the mix of residential and non-residential uses in an area. Research has also demonstrated that another important technique for increasing energy efficiency is increasing the diversity of land-uses. Greater diversity produces energy savings in the same space conditioning, travel, and infrastructure end-uses as density does through better use of system capacities. Again, it may have been too late to consider diversity changes in the three test SPAs, but the option warrants future consideration in other SPAs. 709~022 13 6/18/02 · Multimodal circulation design. Another strong technique for saving energy in land development is designing an efficient and convenient mulfimodal circulation system. Such a system is composed of features that allow walking, biking, and transit use in addition to auto ddving. Important components include relatively dense street networks, completeness of sidewalks, and relatively direct routes from common origins to popular destinations. As with density and diversity, it may have been too late for significant circulation changes in the test SPAs. · Building construction standards. SPA developers may opt for a commitment to reduce building energy use by exceeding Title 24. Developers could propose the amount of Title 24 exceedence per building type and the number of buildings that will participate in such exceedence. A developer could exercise this option by committing to a utility or comparable energy efficiency program that offers beyond-code services, or by simply committing that merchant builders will achieve the stipulated exceedence by means of their own choosing. · So/ar systems. SPA developers could opt to reduce grid-supplied energy by installing solar thermal or PV systems in buildings. Developers could propose the type and capacity of systems to be used, and the number of structures that will receive such systems. · Tree planting. This categor,j allowed SPA developers to offer additional tree planting that will offset greenhouse gas emissions. Selection of this option will not improve a SPA's energy efficiency or air pollutant emissions, but will help mitigate climate change. After consideration of these options, Village Six voluntarily selected the following action measures to improve their projects' energy efficiency and air quality: 482 single-family homes will achieve a 10% Title 24 exceedence using designer/builder-selected measures; and an additional 792 trees will be planted. With these modifications, Village Six was modeled again to recalculate indicator scores and identify final energy savings and air quality improvements. These results are shown in Table 3 indicating an approximate 1% energy use reduction for Village Six between original and modified plans. This is in addition to the 8.6% energy use reduction between the original Village Six plan and the baseline. 709/022 14 6/18/02 Final Results Based on the modified Village Six plan, the final results for energy savings, air quality improvements, and greenhouse gas reductions are as follows: Baseline Village Six Total energy use (MMBtu/yr/capita) 75.56 68.25 % energy reduction - - - 9.7 Total air pollutant emissions (Ibs/yr/capita) 544.85 543.68 % air pollutant emissions reduction - - - 0.21 Total greenhouse gas emissions (Ibs/yr/capita) 10493 9873 % greenhouse gas emissions reduction - - - 5.9 11.7.6 Implementation Measures The following Air Quality Measures will be implemented in Otay Ranch Village Six: 1. Title 24 Exceedence: McMillin Land Development · Construction of 482 single-family detached homes to exceed Title 24 by 10%. Otay Ranch Company · Encourage all memhant builders to participate in a building efficiency program. 2. Additional Tree Planting to offset Greenhouse Gas Emissions In addition to the 3,586 street trees proposed, another 792 trees will be planted as follows: McMillin Land Development - 20% increase in street trees (244 trees based on GIS data submitted) to be planted in parkways and medians. Otay Ranch Company - 548 trees to be planted in front yards of single family detached homes. 709/022 17 6/18/02 The McMillin Land Development shall obtain certification by a Registered Landscape Architect that 244 additional trees have been included on the Master Landscape Plan for their portion of Otay Ranch Village Six. The Otay Ranch Company shall obtain certification by a Registered Landscape Architect that 548 additional trees have been planted on the single-family lots located in their portion of Otay Ranch Village Six. 3. Comply with Section 5.11.5 Mitigation Measures, in Otay Ranch Village Six Sectional Planning Area (SPA) Plan Environmental Impact Report 98-01, December 2001. 11.7.7 References Otay Ranch Village Six Sectional Planning Area (SPA) Plan Final Second Tier Environmental Impact Report 98-01; December 2001, prepared by RECON. 11.7.8 Appendix Criterion Planners/Engineers, INDEX Pilot Test: SPA Air Quality Improvement Plans, May 2002. 709/022 18 6/18/02 OTAY RANCH VILLAGE ELEVEN SECTION 11.7 AIR QUALITY IMPROVEMENT PLAN 11.7.1 Introduction Chula Vista's Growth Management Ordinance requires all major development projects (50 dwelling units or greater) to prepare an Air Quality Improvement Plan (AQIP). On November 14, 2000, the City Council adopted the Carbon Dioxide (CO2) Reduction Plan, that included twenty action measures intended to promote clean fuel vehicles, alternatives to driving, transportation efficient land use planning and energy efficient building construction. Twelve of the action measures directly relate to land use planning and air quality improvements. The AQIP includes implementation of applicable measures identified in the CO2 Reduction Plan. The City is developing guidelines for the preparation and implementation of required AQIP's. A pilot study was initiated to identify and evaluate the relative effectiveness and costs of applying various design and energy conservation features in new development projects. One of the goals of the study is to identify implementation measures that reduce air pollutants and CO2 emissions and exceed existing mandates wherever possible including the Title 24 Energy Code. The INDEX computer model, developed by Criterion Planners/Engineers, was used in the pilot study to analyze the project. The twelve land use measures identified in the CO2 Reduction Plan were translated into action measures for the pilot study as follows: Land-Use 1. Compact development - minimize sprawl. 2. Density - intensity of land use. 3. Diversity - mix and variety of uses. 4. Orientation toward pedestrian and bicycles. 5. Orientation toward transit. 709/021 1 ATTACHMENT 11 BuildinRs 6. General energy design and equipment - improve efficiency. 7. Solar Use - solar thermal applications and power generation. 8. Vegetation - uptakes air pollutants and greenhouse gases. Transportation 9. Pedestrian Facilities - system design and improvements. 10. Bicycle facilities - system design and improvements. 11. Transit facilities - system design and improvements. Infrastructure 12. Water Use - land planning that reduces water consumption. The /NDEX Pilot Test: SPA Air Quality Improvement Plans report prepared by Criterion Planners/Engineers identifies various options available to improve energy efficiency and air quality. See Appendix. 11.7.2 Purpose The purpose of the Otay Ranch Village Eleven Air Quality Improvement Plan (AQIP) is to reduce emissions and energy use and to fulfill the requirements of the Growth Management Ordinance. The AQIP addresses design methods to reduce vehicle trips, maintain or improve traffic flow, and reduce vehicle miles traveled. It also identifies a means of reducing emissions (direct or indirect) from the project, and defines a program to monitor compliance. 11.7.3 Regulatory Framework Federal, state and local agencies share responsibilities for developing and implementing air quality regulations and improvement plans. The federal and state agencies have established air quality standards and requirements for compliance. The local agencies focus on adopting strategies and regulations to achieve compliance with the state and federal mandates. Specific air quality analysis for the project is included in the Environmental Impact Report prepared for the Otay Ranch Village Eleven SPA Plan. As mentioned earlier, the City of Chula Vista's Growth Management Ordinance requires preparation and implementation of an Air Quality Improvement Plan (AQIP) for those projects with 50 dwelling units or greater. 709/021 2 6/18/02 11.7.3 Project Description Development within the 489-acre Village Eleven project includes 2,304 mixed density residential dwelling units, two schools, commercial areas, parks, and open space. The residential development consists of 1,311 single family residential units and 993 multi-family units. There is a mixed use area on the site that contains high density residential development and commercial development. The irrigated open space portions of the project will be maintained by a homeowners association or community facilities district. Land uses are summarized in Figure 1. As was indicated by the initial INDEX scores, the design of the Otay Ranch Village Eleven SPA contains energy-efficient features that improve air quality and red uce CO2 emissions beyond levels that are found in traditional suburban communities. 11.7.4 Air Quality Indicators As described in the attached report, twelve action measures identified in the Carbon Dioxide (CO2) Reduction Plan were used to select 52 key indicators. The indicators gauge the key characteristics of the twelve action measures and focus on the goals of the pilot study. The 52 indicators were selected to address the energy efficiency and emission reduction aspects of the proposed land development. 11.7.5 Project Evaluation Baseline Values The first step in INDEX modeling was the calculation of the baseline values. These are "pre-efficiency" indicator scores representative of land development practices in the 1970s and 80s. These scores form a baseline that the Village Eleven proposal was judged against. As shown in Table 1, baseline values were computed by measuring the three pre-efficiency neighborhoods and then calculating a weighted average scorn for each indicator. Exceptions to the weighted average occur with six indicators as noted in Table 1, where anomalous conditions in the neighborhoods produced scores that could not be considered typical. In these instances, City staff adjusted the values to more common or practical levels (see Table 1 footnotes). To assist in interpreting the baseline scores, Table 1 also includes comments on the scores' relationship to common principles of energy-efficient land-use planning. 709~21 3 6/18/02 Original Village Eleven Proposal Having set baseline values, the next step was INDEX modeling of the original Village Eleven proposal to obtain its indicator scores. Those Village Eleven scores were then compared to the baseline values as shown in Table 2. The principal finding from the first round of iNDEX modeling was that Village Eleven is about 11% more energy efficient than the baseline. Notable characteristics of the Village Eleven and differences between its scores and the baseline are summarized below by element category: · Land-use. Village Eleven generally scores better than baseline values. Village Eleven has favorable residential densities, neighborhood completeness, circulation connectivity, and proximity to transit. In general, Village Eleven achieves its energy and emissions advantage over the baseline in this element primarily through higher total population densities, which reduces space conditioning, travel, and infrastructure energy use. · Transportation. There was little change between Village Eleven scores and baseline values in this element, except for significant increases in pedestrian network coverage, and a drop in transit service coverage. · Infrastructure. Village Eleven residential water use scored close to the baseline. · Environment. Village Eleven improved park proximity for their residents in comparison to the baseline. Village Eleven's open space contiguity score is unusually Iow, suggesting unfavorable fragmentation of spaces (generally 0.5 or higher is desirable). This element also contains the energy and emission scores that summarize the combined effects of land-use, buildings, transportation, and infrastructure. Of the ten energy and emission indicators, the principal indicator is total energy use per year by residents and employees combined. Village Eleven exceeds the baseline in efficiency terms, largely due to higher population densities. The Village's favorable energy scores are mirrored by similar red uctions in pollutant and greenhouse gas emissions. 709/021 10 6/18/02 Modified SPA Proposal The next step in the pilot test was aa invitation for developers to submit modified SPA plans that achieved even greater energy efficiency and air quality than the odginal proposals. Village Eleven elected not to modify its original proposal. Final Results Based on the final Village Eleven plan, the results for energy savings, air quality improvements, and greenhouse gas reductions are as follows: Baseline Village Eleven Total energy use (MMBtu/yr/capita) 75.56 67.39 % energy reduction - - - 10.8 Total air pollutant emissions (Ibs/yr/capita) 544.85 543.59 % air pollutant emissions reduction - - - 0.23 Total greenhouse gas emissions (Ibs/yr/capita) 10493 9833 % §reenhouse 9as emissions reduction i - - - 8.29 II.?.$ Implementation Measures The following Air Quality Measures will be implemented in Otay Ranch Village Eleven: 1. Comply with Section 5.11.6 Mitigation Measures, in Otay Ranch GDP AmendmentsNillage Eleven SPA Plan Environmental Impact Report 01-02. 2. Utilize passive design concepts that make use of the naturally mild climate to increase energy efficiency. 3. Provide a gas connection to firepraces to encourage use of log lighters or of artificial fireplace fogs. 4. Provide outside electrical outlets to encourage use of electrically-powered yard maintenance equipment. 709/021 13 6/18/02 5. Ensure the availability of more than two phone lines to each home for in-home offices, and other telecommuting needs. 6. When home size dictates, a 50 gallon (or smaller) water heater with an energy factor of 0.6 will be used. (Approximately 780 to 877 single-family units) Exclusion for spa/tub configuration will be considered. 7. Dual-glazed windows with vinyl framed windows for all single-family detached units. To further promote the AQIP, the Master Developer will recommend the following measures be considered by all Builders: · Swimming pools should use solar energy with back-up Iow NOx water heaters where lot and house size can accommodate. · Low NOx commercial-sized heaters should be installed in all larger on-site facilities. · Provide 220-volt electrical service to the garage for an electrically powered vehicle charging station. · Utilize energy-efficient lighting wherever feasible. · Provide an outside natural gas connection to encourage use of gas-fired barbecues. · Participation in the SDG&E, ComfortWise, EPA "Energy Star", or equivalent program is encouraged to promote energy conservation. · Use of "Low E" windows. · Planting of additional trees in single-family yards. 709521 14 6/18/02 11.7.7 References Final Environmental Impact Report for the Otay Ranch GDP Amendments/Village Eleven Sectional Planning Area Plan (EIR 01-02); prepared by the City of Chula Vista. 11.7.8 Appendix Criterion Planners/Engineers, INDEX Pilot Test: SPA Air Quality Improvement Plans, May 2002. 709/021 15 6/18/02 RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE EASTLAKE III SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION 11.7 AIR QUALITY IMPROVEMENT PLAN WItEREAS, the property wkich is the subject matter of this resolution is identified in Exhibit "A" attached and is commonly known as EastLake III; and, WHEREAS on March 27, 2001, the City Council approved an agreement between the City of Chula Vista and Criterion Planners/Engineers Inc. for the preparation of a computer model, related reports and analyses of ah' quality and energy conservation measures for three development projects; and WltF. REAS, the property owners of the three development projects, including EastLake ~I Sectional Planning Area (SPA) Plan agreed to participate in a pilot study program to develop and implement new air quality improvement and energy conservation measures; and WHEREAS, when the EastLake m Sectional Planning Area (SPA) Plan was adopted there was no Air Quality Improvement Plan included pending the results of the pilot study program; and WHEREAS, a report containing analyses of the computer model and the results of the pilot study program was prepared by Criterion Planners/Engineers Inc., entitled INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, and a copy shall be kept on file with the City Clerk; and WHEREAS, the air quality and energy conservation report and pilot study program provided necessary information for staff to use in developing guidelines for the preparation of furore air quality Improvement plans; and WHEREAS, an Air Quality Improvement Plan has now been prepared for inclusion in the EastLake 1II Sectional Planning Area (SPA) Plan consistent with the outcomes of the air quality and energy conservation pilot study program; and WHEREAS, an apphcation (PCM 02-24) to amend the EastLake III Sectional Planning Area (SPA) Plan was filed by the City of Chula Vista Planning Division with the consent of the property owner; and WHEREAS, the City of Chula Vista Planning Division requests an amendment to the EastLake III Sectional Planning Area (SPA) Plan to incorporate EastLake 1II SPA Section II.7 Air Quality Improvement Plan dated June, 2002 ("Air Quality Improvement Plan") into the Sectional Planning Area (SPA) document to fulfill the objectives of the pilot study program and the requirements of the City's Growth Management Program (hereinafter referred to as Project); and WItEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determ/ned that the proposed project was adequately covered in the previously adopted EastLake m Woods and Vistas Replanning Program EIR 01-01, therefore no further environmental review or documentation is necessary; and WItEREAS, the amendment to the EastLake I/I Sectional Planning Area (SPA) Plan conforms to the pohcies found in the Chula Vista General Plan and the EastLake General Development Plan; and WItEREAS, the Planning Commission set the time and place for a heating on said Amendment to EastLake m Sectional Planning Area (SPA) Plan (PCM-02-24) and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and tenants within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and V~IEREAS, the public hearing was held at the time and place as advertised, namely 6:00 p.m., July 10, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said public hearing was thereafter closed; and WHEREAS, by a vote of 5-0 the Planning Commission recommended that the City Council approve the amendment; and WltEREAS, a public hearing was scheduled before the City Council of the City of Chula Vista to consider an amendment to the EastLake III Sectional Planning Area (SPA) Plan. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby find, determine, resolve and order as follows: I. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing held on July 10, 2002, and the minutes and resolutions resulting there from, are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any California Environmental Quality Act (CEQA) claims. II. ACTION The City Council hereby accepts the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared by Criterion Planners/Engineers Inc., and directs staff to draft Air Quality Improvement Plan Guidelines. III. COMPLIANCE WITH CEQA The City Council hereby finds that the Project, as described and analyzed in the EastLake m Wood~ and Vistas Repla~ning Program EIR 01-01, would have no new effects that were not examined in said EIR (Guideline 15168(c)(2)). 1V. CEQA FINDING REGARDING PROJECT VOTHIN SCOPE OF PRIOR EIR The City Council hereby finds that: (1) there were no changes in the Project from EIR 01-01 wtfich would require revisions of said environmental report; (2) no substantial changes have occurred with respect to the circumstances under which the Project is undertaken since the previous environmental report; and (3) no new information of substantial importance to the Project has become available since the issuance and approval of the prior environmental report; and that, therefore, no new effects could occur or no new mitigation measures will be required in addition to those already in existence and made a condition for Project implementation. Therefore, the City Council approves the Project as an activity that is within the scope of the Project covered by EIR 01-01. V. CONSISTENCY WITH THE GENERAL PLAN The City Council hereby finds that the proposed Project is consistent with the General Plan based on the following findings: A. THE PROPOSED PROJECT IS IN CONFORMITY WITH THE CHULA VISTA GENERAL PLAN. The Project, which is intended to implement the requirements of the Growth Management Ordinance that requires a Air Quality Improvement Plan be prepared for all major development projects (50 dwelling un/ts or greater) as a part of the Sectional Planning Area (SPA) Plan is consistent with the EastLake General Development Plan and the Chula Vista General Plan in that goals and policies in both documents allow for such provision of Air Quality Improvement Plans. B. THE PROPOSED PROJECT WILL NOT ADVERSELY AFFECT ADJACENT LAND USE, RESIDENTIAL ENJOYMENT, CIRCULATION OR ENVIRONMENTAL QUALITY. The Project does not involve changes to planned land use or circulation pattems. The Project will enhance the environmental quality of the development through the implementation of air quality and energy conservation measures. VI. APPROVAL OF AMENDMENT TO THE EASTLAKE ffI SECTIONAL PLANNING AREA (SPA) PLAN The City Council does hereby approve this amendment to the EastLake ffI Sectional Planning Area (SPA) Plan to incorporate the Air Quality Improvement Plan into the Sectional Planning Area (SPA) document on file at the City Clerk's Office based upon the findings and determinations on the record for this Project. VII. CONSEQUENCES OF FAII,URE OF CONDITIONS Developer agrees to implement the air quality and energy conservation measures outlined in the Air Quality Improvement Plan. If any of the foregoing conditions fail to occur, or they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted, deny, revoke or further condition issuance of all future building perm/ts issued under the authority of the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. Presented by Approved as to form by Robert Leiter Planning and Building Director City Attomey C:kmy files~unend to spa aqipkR.esoskPCM 02-24ELIII SPA Amend cc reso.doc ROLLUN-G HILLS RANCH UPPER EASTI~AKE E.AS T L& K F~ OTAY BUSLNESS WOODS RESERVOIR CENTER II PROJECT LOCATION 'F~S,,STLAK~ ~? EASTLS'KE LOTVER TRAILS ~/; VISTAS / OTAXj RESERVOIR GREENS TRAIN'ING CENtrER CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR I PROJECl' PaOJECT DESCRIPTION: APPMCANT: C~ OF CHULA VISTA  P.OJECT AMENDMENT ADDRESS: OTAY LAKES ROAD Request: Amendment to Eastlake III SPA Plan to incorporate SCALE: FILE NUMBER: ~he Air Quality Improvement Plan. NORTH No Scale PCM-02-24 ~'; '~ Fvhih;* ,, RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO TI4E OTAY RANCH VILLAGE SIX SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION II.7 AIR QUALITY IMPROVEMENT PLAN WHEREAS, the property which is the subject matter of this resolution is identified in Exhibit "A" attached and is commonly known as Otay Ranch Village Six; and, WHEREAS on March 27, 2001, the City Council approved an agreement between the City of Chula Vista and Criterion Planners/Engineers Inc. for the preparation of a computer model, related reports and analyses of air quality and energy conservation measures for three development projects; and WHEREAS, the property ownem of the three development projects, including Otay Ranch Village Six Sectional Planning Area (SPA) Plan agreed to participate in a pilot study program to develop and implement new air quality improvement and energy conservation measures; and WHEREAS, when the Otay Ranch Village Six Sectional Planning Area (SPA) Plan was adopted there was no Air Quality Improvement Plan included pend'mg the results of the pilot study program; and WHEREAS, a report containing analyses of the computer model and the results of the pilot study program was prepared by Criterion Planners/Engineers Inc., entitled INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, and a copy shall be kept on file with the City Clerk; and WIIEREAS, the air quahty and energy conservation report and pilot study program provided necessary information for staff to use in developing guidelines for the preparation of future air quality improvement plans; and WHEREAS, an Air Quality Improvement Plan has now been prepared for inclusion in the Otay Ranch Village Six Sectional Planning Area (SPA) Plan consistent with the outcomes of the ak quality and energy conservation pilot study program; and WHEREAS, an application (PCM 02-24) to amend the Otay Ranch Village Six Sectional Planning Area (SPA) Plan was filed by the City of Chula Vista Planning Division with the consent of the property owner; and WHEREAS, the City of Chula Vista Planning Division requests an amendment to the Otay Ranch Village Six Sectional Planning Area (SPA) Plan to incorporate Otay Ranch Village Six SPA Section II.7 Air Quality Improvement Plan dated June, 2002 ("Air Quality Improvement Plan") into the Sectional Planning Area (SPA) document to fulfill the objectives of the pilot study program and the requirements of the City's Growth Management Program (hereinafter referred to as Project); and WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted Village Six SPA Plan EIR 98-01 and therefore no further environmental review or documentation is necessary;, and WHEREAS, the amendment to the Otay Ranch Village Six Sectional Planning Area (SPA) Plan conforms to the policies found in the Chula Vista General Plan and the Otay Ranch GDP/SRP; and WHEREAS, the Planning Commission set the time and place for a hearing on said Amendment to Otay Ranch Village Six Sectional Planning Area (SPA) Plan (PCM-02-24) and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and tenants within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and WHEREAS, the public hearing was held at the time and place as advertised, namely 6:00 p.m., July 10, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said public heating was thereafter closed; and WHEREAS, by a vote of 5-0 the Planning Commission recommended that the City Council approve the amendment; and WHEREAS, a public hearing was scheduled before the City Council of the City of Chula Vista to consider an amendment to the Otay Ranch Village Six Sectional Planning Area (SPA) Plan. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby find, determine, resolve and order as follows: I. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing held on July 10, 2002, and the minutes and resolutions resulting there fi.om, are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any Califomia Environmental Quality Act (CEQA) claims. IL ACTION The City Council hereby accepts the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared by Criterion Planners/Engineers Inc., and directs staffto draft Air Quality Improvement Plan Guidelines. IH. COMPLIANCE WITH CEQA The City Council hereby finds that the Project, as described and analyzed in the Otay Ranch Village Six Final Environmental Impact Report (FEIR 98-01), would have no new effects that were not examined in said EIR. IV. CEQA FINDING REGARDING PROJECT WITItlN SCOPE OF PRIOR EIR The City Council hereby finds that: (1) there were no changes in the Project from EIR 98-01 which would require revisions of said environmental report; (2) no substantial changes have occurred with respect to the circumstances under which the Project is undertaken since the previous environmental report; and (3) no new information of substantial importance to the Project has become available since the issuance and approval of the prior environmental report; and that, therefore, no new effects could occur or no new mitigation measures will be required in addition to those already in existence and made a condition for Project implementation. Therefore, the City Council approves the Project as an activity that is within the scope of the Project covered by the FEIR 98-01 (Guideline 15168(c)(2)). V. CONSISTENCY WITH THE GENERAL PLAN The City Council hereby finds that the proposed Project is consistent with the General Plan based on the following findings: A.THE PROPOSED PROJECT IS IN CONFORMITY WITH THE CHULA VISTA GENERAL PLAN. The Project, which is intended to implement the requirements of the Growth Management Ordinance that requires a Air Quality Improvement Plan be prepared for all major development projects (50 dwelling units or greater) as a part of the Sectional Planning Area (SPA) Plan is consistent with the Otay Ranch GDP/SRP and the Chula Vista General Plan in that goals and policies in both documents allow for such provision of Air Quality Improvement Plans. B. THE PROPOSED PROJECT WILL NOT ADVERSELY AFFECT ADJACENT LAND USE, RESIDENTIAL ENJOYMENT, CIRCULATION OR ENVIRONMENTAL QUALITY. The Project does not involve changes to planned land use or circulation patterns. The Project will enhance the environmental quality of the development through the implementation of air quality and energy conservation measures. VI. APPROVAL OF AMENDMENT TO THE OTAY RANCH VILLAGE SIX SECTIONAL PLANNING AREA (SPA) PLAN The City Council does hereby appmve this amendment to the Otay Ranch Village Six Sectional Planning Area (SPA) Plan to incorporate the Air Quality Improvement Plan into the Sectional Planning Area (SPA) document on file at the City Clerk's Office based upon the findings and determinations on the record for this Project. VII. CONSEQUENCES OF FAII,URE OF CONDITIONS Developer agrees to implement the ak quality and energy conservation measures outlined in the Air Quality Improvement Plan. If any of the foregoing conditions fail to occur, or they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted, deny, revoke or further condition issuance of all furore building permits issued under the authority of the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. Presented by Approved as to form by Robert Leiter Jo-~'eny c~ Planning and Building Director City Attorney C:~ny filesXamend to spa aqip~Resos~PCM02-24V6 SPA Ammd cc reso.doc F~ASTIkAKE GREENS COUN'FRYSIDE LOMAS VERDE VILLAGE 11 VILLAGE SIX FREEWAY COMMERCIAL VILLAGE 2 / ~ FUTURE ['fl ~ ,- EASTERN ,,,, c~ URBAN m CENTER , ,~ VILLAGE 7 ~ PROJECT LOCATION I CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT PROJECT DESCRIPTION:  APPLICANT: CITY OF CHULA VISTA AMENDMENT PROJECT Southeast comer of La Media Road ADDRESS: and Olympic Parkway ~ Request: Amendment to Otay Ranch Village Six SPA Plan SCALE.: m FILE NUM[~EPc to incorporate the AJr Quality improvement Plan. · NORTH No s~,eI PCM-02-24 / ,) -/gg:'~ 1;',-~,;I,;* RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE OTAY RANCH VILLAGE ELEVEN SECTIONAL PLANNING AREA (SPA) PLAN TO INCORPORATE SECTION H.7 AIR QUALITY IMPROVEMENT PLAN WHEREAS, the property which is the subject matter of this resolution is identified in Exhibit "A" attached and is commonly known as Otay Ranch Village Eleven; and WHEREAS on March 27, 2001, the City Council approved an agreement between the City of Chnla Vista and Criterion Planners/Engineers Inc. for the preparation of a computer model, related reports and analyses of air quality and energy conservation measures for three development projects; and WHEREAS, the property owners of the three development projects, including Otay Ranch Village Eleven Sectional Plmming Area (SPA) Plan agreed to participate in a pilot study program to develop and implement new air quality improvement and energy conservation measures; and WHEREAS, when the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan was adopted there was no Air Quality Improvement Plan included pending the results of the pilot study program; and WHEREAS, a report containing analyses of the computer model and the results of the pilot study program was prepared by Criterion Planners/Engineers Inc., entitled INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002, and a copy shall be kept on file with the City Clerk; and WHEREAS, the air quality and energy conservation report and pilot study program provided necessary information for staff to use in developing guidelines for the preparation of future air quality improvement plans; and WHEREAS, an Air Quality Improvement Plan has now been prepared for inclusion in the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan consistent with the outcomes of the air quality and energy conservation pilot study program; and WHEREAS, an application (PCM 02-24) to amend the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan was filed by the City of Chula Vista Planning Division with the consent of the property owner; and WHEREAS, the City of Chula Vista Planning Division requests an amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan to incorporate Otay Ranch Village Eleven SPA Section H.7 Air Quality Improvement Plan dated June, 2002 ("Air Quality Improvement Plan") into the Sectional Planning Area (SPA) document to fulfill the objectives of the pilot study program and the requirements of the City's Growth Management Program (hereinafter referred to as Project); and WItEREAS, the Environmental Review Coordinator has reviewed the proposed Project for compliance with the Califomia Environmental Quality Act and has determined that the proposed Project was adequately covered in the previously adopted Otay Ranch GDP Amendments/Village 11 SPA Plan EIR 01-02, therefore no further environmental review or documentation is necessary;, and WHEREAS, the amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan conforms to the policies found in the Chula Vista General Plan and the Olay Ranch GDP/SRP; and WltEREAS, the Planning Commission set the time and place for a heating on said Amendment to Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan (PCM-02- 24) and notice of said heating, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and tenants within 500 feet of the exterior boundaries of the property at least 10 days prior to the heating; and WHEREAS, the public hearing was held at the time and place as advertised, namely 6:00 p.m., July 10, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said public heating was thereafter closed; and WHEREAS, by a vote of 5-0 the Planning Commission recommended that the City Council approve the amendment; and WHEREAS, a public heating was scheduled before the City Council of the City of Chula Vista to consider an amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby find, detemfine, resolve and order as follows: I. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing held on July 10, 2002, and the rrfmutes and resolutions resulting there fi.om, are hereby incorporated into the record of this proceed'rog. These documents, along with any documents submitted to the decision makers, shall comprise the entire record of the proceedings for any California Environmental Quality Act (CEQA) claims. - II. ACTION The City Council hereby accepts the INDEX Pilot Test: SPA Air Quality Improvement Plans, June 2002 report prepared by Criterion Planners/Engineers Inc., and directs staff to draft Ak Quality Improvement Plan Guidelines. III. COMPLIANCE WITH CEQA The City Council hereby finds that the Project, as described and analyzed in the Otay Ranch GDP Amendments/Village 11 SPA Plan EIR 01-02, would have no new effects that were not examined in said EIR. IV. CEQA FINDING REGARDING PROJECT WITHIN SCOPE OF PRIOR EIR The City Council hereby finds that: (1) there were no changes in the Project fi-om EIR 01-02 which would require revisions of said environmental report; (2) no substantial changes have occurred with respect to the circumstances under which the Project is undertaken since the previous environmental report; and (3) no new information of substantial importance to the Project has become available since the issuance and approval of the prior environmental report; and that, therefore, no new effects could occur or no new mitigation measures will be required in addition to those already in existence and made a condition for Project implementation. Therefore, the City Council approves the Project as an activity that is within the scope of the Project covered by the FEIR 01-02 (Guideline 15168(c)(2)). V. CONSISTENCY WITH THE GENERAL PLAN The City Council hereby finds that the proposed Project is consistent with the General Plan based on the following findings: A. THE PROPOSED PROJECT IS IN CONFORMITY WITH THE CHULA VISTA GENERAL PLAN. The Project, which is intended to implement the requirements &the Growth Management Ordinance that requires a Air Quality Improvement Plan be prepared for all major development projects (50 dwell'rog units or greater) as a part of the Sectional Planning Area (SPA) Plan is consistent with the Otay Ranch GDP/SRP and the Chula Vista General Plan in that goals and policies in both documents allow for such provision of Air Quality Improvement Plans. B. THE PROPOSED PROJECT WILL NOT ADVERSELY AFFECT ADJACENT LAND USE, RESIDENTIAL ENJOYMENT, CIRCULATION OR ENVIRONMENTAL QUALITY. The Project does not involve changes to planned land use or circulation pattems. The Project will enhance the environmental quality of the development through the implementation of air quality and energy conservation measures. VI. APPROVAL OF AMENDMENT TO THE OTAY RANCH VILLAGE ELEVEN SECTIONAL PLANNING AREA (SPA) PLAN The City Council does hereby approve this amendment to the Otay Ranch Village Eleven Sectional Planning Area (SPA) Plan to incorporate the Air Quality Improvement Plan into the Sectional Planning Area (SPA) document on file at the City Clerk's Office based upon the findings and determinations on the record for this Project~ VII. CONSEQUENCES OF FAILURE OF CONDITIONS Developer agrees to implement the air quality and energy conservation measures outlined in the Air Quality Improvement Plan. If any of the foregoing conditions fail to occur, or they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted, deny, revoke or further condition issuance of all future building permits issued under the authority of the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. Presented by Approved as to form by Robert Leiter J0h~. ~aheny Planning and Building Director City Attomey C:~my fileshamend to spa aqiphResosXPCM02-24V 11 SPA Amend cc reso.doc EASTLAKE GREENS FREEVVAY COMMERCIAL VILLAGE ELEVEN i EASTERN URBAN CENTER PROJECT LOCATION CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT PROJECT OESCR,PTION: APPUCAN~ CIT'Y' OF CHULA VISTA  AMENDMENT PROJECT ADDRESS: OLYMPIC PARKWAY Request: Amendment to Otay Ranch Village Eleven SPA Plan SCALE: FIE NUMBER: to incorporate He Air Quality Improvement Plan. NORTH No Scale PCM-02-24 / / -/~ ~/~ F,×hibit COUNCIL AGENDA STATEMENT Item No.: tSL. Meeting Date: 08-13-2002 ITEM TITLE: Public Hearing: PCC-02-50; Conditional Use Permit to install, operate and maintain an unmanned wireless communications facility at the Auld Goff Golf Course, 525-549 Hunte Parkway. Applicant: Nextel Communications. Resolution of the City Council of the City of Chula Vista granting approval of Conditional Use Permit. PCC-02-50, for an unmanned cellular communications facility at the Auld Goff Golf Course, 525-549 Hunte Parkway. BY: Director of Planning and Building/~ SUBMITTED REVIEWED BY: City Manager ~ ~2~ (4/Sths Vote: Yes No X ) Nextel Communications is requesting permission to construct and operate an unmanned cellular communications facility at 525-549 Hunte Parkway, the Auld Goff Golf Course. The project will consist of one 63 foot monopine, two 25 foot live pine trees and an 11 foot 6 inch by 20 foot equipment shelter that would be 12 foot 3 inches high. The Environmental Review Coordinator has determined that this project is exempt per the California Environmental Quality Act (CEQA), Section 15305, Class 5, minor conditional use permit that does not significantly intensify land use. RECOMMENDATION: 'rha~ the City Council adopt the attached resolution, approving Conditional Use Permit PCC-02-50, for a NexteI Communications cellular facility at the Auld Goff Golf Course. BO3~RDS/COMMISSIONS RECOMMENDATION: On July 24, 2002 the Planning Commission voted (5 - 0 - 0 - 2) to adopt Planning Commission Resolution PCC-02-50, recommending the City Council grant approval of Conditional Use Permit PCC-02-50. Page 2, Item No.: /9~_~ Meeting Date: 08-13-2002 DISCUSSION: 1. Site Characteristics The project site is located at the Auld Goff Golf Course at 525-549 Hunte Parkway. The 40 acre parcel is zoned as Agriculture (A8) Zone. The Auld Golf Course is on Hunte Parkway north of Proctor Valley Road. 2. General Plan, Zoning and Land Use The project is located in the Agriculture (8) Zone~ and has a General Plan Land Use Designation of Open Space. The following table specifies the types of land uses surrounding the project site: General Plan Zoning Current Land Use Site: Open Space A-8 Auld Golf Course North: Open Space OS Open Space South: Residential/LM PC/R1 Rolling Hills Ranch East: Residential/Low PC/R1 Proposed Residential West: Residential/LM PC/R1 Residential The purpose of the Agricultural Zone is to provide a zone with appropriate uses for areas rural in character, which are undeveloped and not yet ready for urbanization. Cellular facilities are considered an unclassified use in this zone and require a conditional use permit. 3. Proposal Nextel Communications proposes to construct an unmanned cellular communications facility at the Auld Golf Course located at 525-549 Hunte Parkway. The proposed facility would consist of one 63 foot monopine and one I i'-6 by 20'-0', 12 foot 3 inch high equipment shelter. To keep conformity with the existing landscape, two live, 25 foot tall, pine trees will be planted adjacent to the proposed monopine. The antennas are proposed to be placed on the 63 foot monopine. The antenna height would be approximately 55 feet, measured from ground level to the center of the antem~as. Three sectors of antennas are proposed each with a maximum of five antennas, for a total of up to fifteen antennas. The proposed antennas would be integrated to minimize visual impacts. Page 3, Item No.: Meeting Date: 08-13~2002 The proposed equipment shelter would be built on a concrete slab m~d would have corrugated metal siding. It will reflect the architectural features (including color and design) and landscaping of the existing maintenance building. 4. Analysis: In accordance with Section 19.48 (Unclassified Uses) and Section 19.20.040 (G), Conditional Use Permits are required for uses listed in this section of the Zoning Code, and shall be considered by the City Council upon recommendation by the Planning Commission. Due to the increase in public demand for cellular use and coverage, several cell sites have been located within Chula Vista. Nextel is proposing a cell site at the Auld Golf Course to enhance cellular service. The proposed cellular site will allow' Nextel to maintain signal coverage within the southern portion of the region. The proposed site is zoned Agricultural (8) and is not immediately surrounded by residences. There are very few, if any other, large non-residential parcels that will satisfy the coverage objective for this specific area. The proposed height~ of the monopine and the two live pine trees appear to be reasonable for the proposed location and zone. The two live pines and other live trees on the site should grow over time to a comparable scale. Further, per Section 19.16.040 of the Chula Vista Municipal Code, the proposed cellular site is not subject to the height limitations of the Agriculture (8) Zone. The proposed use appears to meet the findings necessary to grant Conditional Use Permit, PCC- 02-50. 1. The proposed use is necessary or desirable to provide a service or facility, which will contribute to the general well being of the neighborhood or the community. The proposed project is desirable as it will increase public convenience by providing essential communication service in the area. The proposed use will be constructed to match the existing landscape in form and character. The proposed use will not interfere with any existing activities or conveniences of the general public and will contribute to the general well being of the community by ensuring uninterrupted cellular service in the South Bay area. 2. The use will not be detrimental to the health, safety, or general welfare of persons residing or working in the vicinity, or injurious to property or improvements in the vicinity. Accessibility to clear and reliable communications, which can continue to function in the event of an emergency or natural disaster, may help to enhance the general health, safety, and welfare of the citizens of Chula Vista. The proposed monopine and equipment Page 4, Item No.: / ''? Meeting Date: 08-13-2002 shelter will not create a negative visual impact as it is well removed from any residential uses and will conform to the existing environment and landscape. 3. The proposed use will comply with the regulations and conditions specified in the code for such use. The proposed use must comply with the conditions of the Conditional Use Permit, PCC- 02-50 as recommended by Planning Commission and approved by the City Council. All necessary permits from the City to install, operate, and maintain the facility will be obtained. 4. The granting of this conditional use permit will not adversely affect the general plan of the city or the adopted plan of any governmental agency. The proposed use is consistent with the general plan of the city. According to the Eastern Territories Area Plan Section of the General Plan, most development will take place in the Eastern portion of the City. It is Goal #2 of said Area Plan to accommodate and regulate such development. The proposed cellular facility will help accommodate the communication needs of such high development throughout the South Bay, as well as the Eastern portion of the City. It is a passive use and therefore will not adversely affect the policy and goals of the General Plan. 5. Conclusion: The proposed use is compatible with the existing uses on-site at the Auld Golf Course. The proposed telecommunications facility will conform to all the development standards of the Agricultural (8) Zone as well as the policies and goals identified in the City Of Chula Vista General Plan. Staff, therefore, recommends approval based upon the findings and conditions of the attached resolution. FISCAL IMPACT: There will be no fiscal impact to the General Fund associated with this project. The applicant will be responsible for all processing fees. I. Locator Map 2. Conditional Use Permit Application 3. Planning Commission Resolution J:\Planning\Lynnelle\council\pcc-02-50 AGENDA STATEMENT.doc -- I -4! PROJECT AULD GOLF GUEL RANCH ROLLING HILLS RANCH EASTLAKE LAKES GREENS CHU ,A VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT PROJECT DESCRIPTION:  APPUCANT: NEXTELCOMMUNICATIONS CONDITIONAL USE PERMIT PROJECT ADDRESS: 525-549 HUNTE PARKWAY Request: Proposal for a wireless communication site at the Auld Golf Course. SCALE: FILE NUMBER: NORTH No Scale PCC-02-50 ATTACHNENT 1 j:\home\planning\cherTylc\locators\pccO250.cdr 07.30~02 ,/~ _~-- i:'!i CITY OF CHULA VISTA L-'?elopment P~ocessing ': ': '/(~ Plarm/ng & Building Department Application Form - Type A ~OIY!OF 276 Fourth Avenue C~,-~c...}~.~'~tb-r~.+ (619)691-510I Page One TYPE OF REVIEW REQUESTED Conditional Use Permit Is~off use only] Case No.: PC C - Filing Date: Z/J~II)~. By: ~,- E~/Variance Assigned Planner: V/~/~,,/r~' ~/~' Receipt No.: 02- Design Review Project Acct: ~ I 0 0~ Special l.~nd Use Permit Deposit Acct: ~ - ~...~Area Onty) Related Cases:I g 02. ~1) ~ ~ l~:elane~s: Ell Z.A. ,,~ELPublic Heamg APPLICANT I]N-FORMATION ~pplicant Name 1 Phone No. !ADplioc~rf Address ~ ' '- · _~7/,d 02f~/';~¢4ve~ 5u.~ t00~ 5k~4 -~6o~ C~ ;];Mil .A,.T~¢~ ~1'~ lnt~est in Propew If applicant is not owner, owners aLrthofizoti~n C)W~ ~/~=,ose ~! in Escrow E} Option to purchase is required to process reque~. See signolure on Page Two. A~ct-~i~.;t/Age~ ~nt Phone No I GENERAL PROJECT DESCRIPTION (for all Wpes) !~ect Name ~ Pror)osed Use k~er~n.,"q'- CA "7,z-~A P~la~'-L~ca I V~'~q'a.e~/,m~cancaa ~ctu,~/' i,,%~n--Drol Description of Proposed Project ~ ~ ~d~ A to pr?4de~ fMfl ~es~pfion ond justifio~ for ~e proi~t , a~-~e ~ena~ o Pl~.~pi~c~on Conference to discu~ ~is projec~ _~ ~/~ SU~CT PROPER~ ~O~TION (for all Wpes/ I~~t A~re~ [~7~$~r~ No. Total Acr~g~ R~evelop~nt Nea (if applicable) ~F~a P~n ~sign~ion Cu~ent Zone Design~Jon Planned Communi~ (it app~ica~e) ~:~'~-~.~'?~ Ils this in Montgomery .,~%\I~.ff~ -~" Development Processing ~ CITY OF CHULA VISTA ~ Planning & Building Depar~ment Applica? om Form ~ ~ 276 Fo~ Avenue ~U~ VI~ (619)691-5101 ~og~ Two Case No.: PROPOSED PRO.CT (all ~pes) ~T~ of Use Ho~sed kandsca~ Coverage (% of Lot) ~ Residential ~Comm. ~ Ind. ~ ~her [Building Coverage [% of Eot) ~ES~E~L P~O~CT S~y ~T~ of Dwelling Un,si Numar of Lots ~No. of Dwelling Unbs Proposed E~sting ' 1BR 2BR 3+BR Total ~nsl~ (OUs/acrej M~mum Building Height I Minimum Lol Size Average Lo~ bize ~na S~ces Tota~ Off-street ~J~ of Parking ¢:ze. v,ne;ne Reauired by Code: Provided: 'O~n Space ~scfiption [Acres ~ch of pr~e, common, and Iandscapina] NON-~S~ENT~L PRO'CT S~4RY ~Hours of O~r~on (~ a H~JrS) ~.~nfigi~ed Total ~ Emp oy~s ~ax. ~ o, Employ__s at any one ~Dg S~ces R~uired Spoce~ ~ovided T~ of ~r~no (s~ze] [~ ot Stu~n~s/Cnilaren (. ~io~e) Print Applicant or Agent Name ~--~_.plicO~I.or A~ent Sianature CSfflf~ bll-4, Da~e' / ~nt Owner Name Owner Signature' Da~e [Required if Aopficaot is not Owner) ' Letter of owner consent may be used in lieu of signature. F~?M A-PAGE 2 OF 2 I ,~ppend~x ~ THE CI, . '-%', CHULA VISTA DISCLOSURE ST,-,, ENT You are required to file a Statement of Disclosure of certain ownership or financial interests, payments, or campaign contributions, on all matters which will require discretionary action on the part of the City Council, Ptanning Commission, and all other official bodies. The following information must be disclosed: 1. List the names of all persons having financial interest in the property which is the subject of the application or the contract, e.g., owner applicant, contractor, subcontractor, material supplier. 2. If any person* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. 3. If any person* identh'~ed pursuant to (1) above is non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of ,h~ trust. 4. Have you had more than $250 worth of business transacted with any member of the City staff. Boards, Commissions, Committees, and Council within the past twelve months? Yes No ~' If yes, please indicate person(s): 5. Please identify each and every person, including any aoents, employees, consultants, or indeF~ndent contractors who you have assigned to represent yoTJ before the City in this matter. 6. Have you and/or your officers or agents, in !,:h.e aggregate, contributed mot/ethan $1,000 to a Councitmember in the current or preceding elecdon period? Yes No g/If yes, state which Councilmember(s): (NO TE: A TTA CH ADDITIONAL PA GES A S NECESSARY} ~ Sig na'tu¢,¢ O~ontractor/applicant Print or type name of contractor/applicant * Person ix defined as: "Any individual firm co-partnership join] v~nture, a. rsociation, social club, freaternal organization, corporahon, estate, tr~ast, receiver, syndicate th!s and any o her county city and countr): city municipality, district, or other political subdivision, or any other group or combination acting as o unit." · ~ ' Nextel Communications 5761 Copley Drv,~ Suile 103, San Dieoo mb, r..~ . 858-650-4208 FAX 858-550-z802 NEXTEL Project Description and Conditional Use Permit Findings Nextel Site #CA 7460A Miguel Ranch, The Auld Golf Course, 525-549 Hunte Parkway, Chula l~ista, CA 9J915 APA5 595-040-08 PR OdE CT DESCRIPTION: Nextel Communications, Inc., d/b/a Nextel Communications, has been authorized by the Federal Communications Commission (F.C.C.) to construct and operate the first dual purpose digital mobile radio system in the Unites States. Nextel's Enhanced Specialized Mobile Radio (ESMR) system provides four functions in one hand-held mobile telephone unit: paging, direct- connect two-way radio communication, internet connectiun, and regular wireless mobile service. The proposed facility consists of one (1) antenna structure designed to resemble a pine tree ("~onnpine"), and an adjacent equipment shelter to house radio equipment. The monopine will measure sixty-fi~ree feet (63') in height, and will contain three (3) sectors of antennas. Each anzevz:a sector will contain a m~imum of five (5) antennas, for a total of up to fifteen (I 5) ~qte~'~. The equipment she]ter measures 11 ~-6" by 20'-0", and will be placed adjacent to the monop~ne. To mitigate any potential visual impacts. Nextel will plant two (2) live pine trees adjacent to the proposed monopine. a. The proposed use at the particular location is necessat3., or desirable to provide a service or facility which will contribute to the general well being of the neighborhood or the Mobile telephones are becoming more and more prevalent in society, with a new subscriber being added about every 42 seconds. Over 117,000 calls to 911 are made daih' by mobile phone users across the United States. This consumer demand drives the wireless'carriers' n~d to place new cell sites across the nation. T'ne nature of Nextel's unique direct connect feature makes it the most efficient method of se,cured communicmions for organizations working to protect the public safety. There have been a number of newsworthy events that involved the Nextel communications system: · During the 1994 Northridge earthquake disaster Nextel ',,as the provider of communications sen, ices for the earthquake relief provided by the Red Cross. In the aftermath of the Seattle earthquake in 2001, landlines were overloaded bv the volume of calls. The F.A.A. used their Nextel phones and were provided wi~h additional phones to use in their assessment of damage and for use in the organization's temporary air traffic control mobile unit. NEXTEE · Closer to home, during the unfortunate school shooting in Santee, Nextel's nearby cell site (abutting residential property) provided communications for police and city personnel when the regular telephone services were overloaded by the sudden high volume of calls. · During the Viejas fire, the conventional communication systems in Lawson Valley did not function for days during the reconstruction of the infrastructure that was destroyed by the fire. This left the area without the ability for the public to make 911 notifications unless cell phones were used. · In June, 2001, Nextel placed a temporary cell site at the San Diego Convention Center. The temporary site was placed to provide the hundreds of California Highway Patrol officers as well as officers from the San Diego Police Department wSth secured communications through their Nextel phones while they provided for the public safety during the Bio 2001 conference. · And most recently, in the aftermath of the September 11 tragedy, the thousands of Nextel mobile phones that were used by public safety first-response teams and support personnel would have been of no use had there not been an existing communications ceil site network in place in the New York area. The location of the project will be desirable to the public convenience and welfare because it x~4l] enhance the coverage and capacity ofNextel's ,Mreless network in the immediate area. ~2s location has been coordinated with the proper~y owner, so that this unstaffed wireless teie:ommunications facility will not impact the functionality, use, and aesthetics of the pTo?er~,.L b. The proposed use will not, under the circumstances of the particular case, be detrimental to the health, safe~ or general welfare of persons residing or workb~g in the viciniO,, or injurious to property or bnprovements in the vicinity: T-ne installation of antennas and transmission equipment Mil not be detrimental to the health, sa~:e~ or general welfare of persons in the vicinity, as the facility, will operate in full compliance ~;ith all local, state and federal regulations including the Federal Telecommunications Act of 1996. The facility will not result in any material changes to the ch~,'acter of the local community, as the antenna structure wilt resemble a pine tree and two Iive pine trees ~fiI1 be planted. In addition, the existing trees in the immediate vicinity of the proposed facility will serve to screen the equipment. c. The proposed use will comply with the regulations and conditions specified in this code for such use: ~l-he proposed facility will comply with the regulations and conditions specified in the city code for the proposed use, with the exception of the height of the monopine. Nextel is Nextel Communications 5751 Copley Drive. Suile 103, San Diego, CA 92111 858-~50-4200 FAX 858-650-~202 NEXI'EE requesting to exceed the thirty-five feet (35') height limit due to technical requirements. Attached are two (2) coverage maps, one showing coverage with antennas at thirty feet (30') high (which would comply with the height limit), and the other showing coverage with antennas at the proposed fifty-five feet (55') high. As the coverage maps depict, there is a significant increase in coverage with antermas at 55'. More specifically, coverage extends into the commercial/industrial park located southwest of the proposed facility, as well as to neighboring residential areas. Antennas at 30' would provide coverage to the golf course, but only spot~ in-car coverage to the commercial/industrial park. The facility will also comply with all state and federal requirements for wireless facilities. d. The granting of this conditional use will not adversely affect the general plan of the ciO~ or the adopted plan of any governmental agency: The proposed use MIl not have an adverse affect on the general plan or adjacent properties. as the adjacent and abutting properties will have a limited view of the facility. The facility Mil be located ,Mthin the existing Auld Golf Course, tucked within existing trees. The smTounding uses are open space and high-tension wires to the North, a water reserx, oir and open space to the East. residential to the South, and open space to the West. Unlike other land uses, which can be spatially determined through the General Plan or other land use plans, the location of wireless telecommunications facilities are based on technical requirements which include sen, ice area, geographical elevations, alignment with neighboring sit,-s and customer demand components. Placement within the urban ~eography is dspendent on these requirements. Accordingly, wireless telecommunication fac~-Iities have been located adjacent to and within ail major land use categories including residential. commercial, indusrriaI, open space, etc. proving to be compatible in all locations. Th4 proposed facili~' at the subject location will be unstaffed, have no impact on circulation systems, and generate no noise, odor, smoke, or any other adverse impacts to adjacent land 3 RESOLUTION NO. PCC-02-50 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING CiTY COUNCIL APPROVE THE CONDITIONAL USE PERMIT, PCC-02-50, AN UNMANNED CELLULAR COIvlMUNICATIONS FACILITY AT THE AULD GOFF GOLF COURSE, 525-549 Hunte Parkway. WHEREAS, a duly verified application for a conditional use permit was filed with the City Of Chula Vista Planning Division on February 19, 2002; and WHEREAS, said applicant requests a conditional use permit for an unmanned cellular communications facility at the Auld Golf Course; and WHEREAS, the project site in Agricultural (8) Zone, and requires a conditional use permit for cellular facilities; and WHEREAS, cellular facilities are considered unclassified uses that may be permitted anywhere in the City per Chula Vista Municipal Code Section 19.48; and WHEREAS, the proposed use is compatible with the existing uses on the site and will conform to the development standards of the Agricultural Zone; and WHEREAS, the proposed project will be desirable and necessary as a public convenience by providing cellular communication accessibility in Chula'Vista. WHEREAS, the Environmental Review Coordinator, in compliance with the California Environmental Quality Act (CEQA) has concluded that this project is a Class 5 categorical exemption from environmental review (CEQA Section 15305, minor conditional use permit that does not significantly intensify land use); and WHEREAS, the Planning Director set the time and place for a hearing on said conditional use permit and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners and residents ,x4thin 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely July 10, 2002 at 6:00 p.m. in Council Chambers, 276 Fourth Avenue, before the Planning Conmfission; and WHEREAS, the Planning Commission considered all reports, evidence, and testimony presented at the public hearing with respect to subject application. NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION does hereby recommend that the City Council approve Conditional Use Permit PCC 02-50 in accordance with the findings and subject to the conditions and findings contained in the attached City Council Resolution. BE IT FURTHER RESOLVED THAT a copy of this resolution be transmitted to the City Council. PASSED AND APPROVED BY THE PLANNING COMMISSION OF CHULA VISTA, CALIFORNIA, this 24th day of July, 2002 by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: Kevin O'Neill, Chair ATTEST: Diana Vargas, Secretary RESOLUTION NO. RESOLUTION: OF THE CHULA VISTA CITY COUNCIL GRANTING APPROVAL OF CONDITIONAL USE PERMIT, PCC- 02-50, FOR AN UNMANNED CELLULAR COMMUNICATIONS FACILITY AT THE AULD GOFF GOLF COURSE, 525-549 HUNTE PARKWAY. 1. RECITALS A. Project Site WHEREAS, the area of land commonly known as the Auld Goff Golf Course, which is the subject matter of this resolution, and is represented in Exhibit "A" hereto and incorporated herein; and for the purpose of general description herein consists of 40.53 acres with a Land Use Designation of Agricultural (8); and B. Project; Application for Discretionary Approval WHEREAS, on February 19, 2002, a duly verified application for a conditional use permit (PCC-02-50) was filed with the City of Chula Vista Planning Department by DCI Pacific on behalf of the applicant Nextel Communications. C. Environmental Determination WHEREAS, the Environmental Review Coordinator, in compliance with the California Environmental Quality Act (CEQA) has concluded that this project is a Class 5 categorical exemption from environmental review (CEQA Section 15305, minor conditional use permit that does not significantly intensify land use); and D. Planning Commission Record on Application WHEREAS, the Planning Commission held an advertised public hearing on the said project on July 24, 2002 and voted 5-0-0-2 to recommend that the City Council approve the conditional use permit based on the findings and subject to the conditions listed below in accordance with Planning Commission Resolution PCC-02-50; and E. City Council Record on Application WHEREAS, a duly called and noticed public hearing was held at the time and place as advertised on August 13, 2002 in the Council Chambers, 276 Fourth Avenue before the City Council of the City of Chula Vista; to receive the recommendation of the Planning Commission, and to hear public testimony with regard to the Project, and said hearing was thereafter closed. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby find, determine, and resolve as follows: /2-·/Lf Resolution No. Page 2 II. PLANNING COMMISSION RECORD The proceedings and all evidence on the proj ect introduced before the Planning Commission at their public hearing on this project held on July 24, 2002 and the minutes and resolution resulting there from, are hereby incorporated into the record of this proceeding. III. CERTIFICATION OF COMPLIANCE WITH CEQA The City Council does hereby find that the environmental determination of the Environmental Review Coordinator and the Planning Commission was reached in accordance with requirements of the California Environmental Quality Act, the State EIR Guidelines, and the Environmental Review Procedures of the City ofChula Vista. IV. CONDITIONAL USE PERMIT FINDINGS The City Council of the City of Chula Vista does hereby make the findings required by the City's rules and regulations for the issuance of conditional use permits, as herein below set forth, and sets forth, there under, the evidentiary basis that permits the stated finding to be made. 1. That the proposed use at this location is necessary or desirable to provide a service or facility which will contribute to the general well being of the neighborhood or the community. The proposed project is desirable, as it will increase public convenience by providing essential communication service in the area. The proposed use will be constructed to match the existing landscape in form and character. The proposed use will not interfere with any existing activities or conveniences of the general public and will contribute to the general well being of the community by ensuring uninterrupted cellular service in the South Bay area. 2. That such use will not under the circumstances of the particular case be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. Accessibility to clear and reliable communications, which can continue to function in the event of an emergency or natural disaster, may help to enhance the general health, safety, and welfare of the citizens of Chula Vista. The proposed monopine and equipment shelter will not create a negative visual impact as it is well removed from any residential uses and will conform to the existing environment and landscape. 12-'16 Resolution No. Page 3 3. That the proposed use will comply with the regulations and conditions specified in the code for such use. The proposed use must comply with the conditions of the Conditional Use Permit, PCC- 02-50 as recommended by Planning Commission and approved by the City Council. All necessary permits from the City to install, operate, and maintain the facility will be obtained 4.) That the granting of this Conditional Use Permit will not adversely affect the General Plan of the City or the adopted plan of any government agency. The proposed use is consistent with the general plan of the city. According to the Eastern Territories Area Plan Section of the General Plan, most development will take place in the Eastern portion of the City. It is Goal #2 of said Area Plan to accommodate and regulate such development. The proposed cellular facility will help accommodate the communication needs of such high development throughout the South Bay, as well as the Eastern portion of the City. It is a passive use and therefore will not adversely affect the policy and goals ofthe General Plan. V. TERMS OF GRANT OF PERMIT The City Council hereby grants Conditional Use Permit PCC-02-50, subject to the following conditions. Planning and Building Department: 1. Construct the Proj ect as shown or described in the application, elevations, photo simulations and other exhibits submitted for review at the City Council public hearing dated August 13,2002. 2. Approval of this request shall not waive compliance with all sections of Title 19 (Zoning) of the Municipal Code, and all other applicable City Ordinances in effect at the time of building permit issuance. 3. Cooperate in good faith with other communications companies in co-locating additional antennas on subject property provided said co-locatees have received a conditional use permit for such use at said site from the City. Permittee shall exercise good faith in co- locating with other communications companies and sharing the permitted site, provided such shared use does not give rise to a substantial technical level-or quality-of-service impairment of the permitted use (as opposed to a competitive conflict or financial burden). In the event a dispute arises as to whether permittee has exercised good faith in accommodating other users, the City may require a third party technical study at the expense of either or both the permittee and applicant. 4. Comply with ANSI standards for EMF emissions. Within six (6) month of the Building Division final inspection of the project, the Applicant shall submit a project 12· lib Resolution No. Page 4 implementation report to the Director of Planning and Building, which provides cumulative field measurements of radio frequency (EMF) power densities of all antennas installed at subject site. The report shall quantify the EMF emissions and compare the results with currently accepted ANSI standards. Said report shall be subject to review and approval by the Director of Planning and Building for consistency with the project proposal report and the accepted ANSI standards. If on review the City in its discretion finds that the Project does not meet ANSI standards, the City may revoke or modify this conditional use permit. 5. Ensure that the project does not cause localized interference with reception of area television or radio broadcasts. If on review the City, in its discretion, finds that the project interferes with such reception, the City may revoke or modify the Conditional Use Permit. 6. Obtain building permits from the Chula Vista Building Division. The project must comply with all applicable building codes including the 1998 CBC and CEC; also structural calculations will be required. 7. A graffiti resistant treatment shall be specified for all wall and building surfaces. This shall be noted on any building and wall plans and shall be reviewed and approved by the Planning Director prior to issuance of building permits. Additionally, the project shall conform to Sections 9.20.055 and 9.20.035 of the C.V.M.C. regarding graffiti control. 8. If applicable, the power source for the proposed project shall be independent of existing site facilities. Electrical service connections and the locations of related components such as meters and transformers shall be coordinated with SDG&E and City of Chula Vista Electrician (Terry Strauwald, 619-691-5020) prior to issuance of building permit. The proposed facility may not use said power source prior to final approval. Disruption of existing site improvements and facilities, including site landscaping improvements, resulting from the installation of said electrical services shall be replaced/repaired in kind subject to the appropriate City approval(s). 9. The monopine and two live pines should be staggered and of varying heights to provide for a naturalistic setting. 10. The equipment shelter is to reflect the architectural features (including color and design) of the existing maintenance building. 11. This conditional use permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. Failure to comply with any conditions of approval shall cause this permit to be reviewed by the City for additional conditions or revocation. 12. This permit shall be subject to any and all new, modified or deleted conditions imposed after approval of this permit to advance a legitimate govemmenta1 interest related to health, safety or welfare which the City shall impose after advance written notice to the /2-/7 Resolution No. Page 5 Permittee and after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/conditon, may not impose a substantial expense or deprive Permittee of a substantial revenue source, which the Permittee cannot, in the normal operation of the use permitted, be expected to economically recover. 13. Applicant/operator shall and does hereby agree to indemnify, protect, defend and hold harmless City, its Council members, officers, employees, agents and representatives, from and against any and all liabilities, losses, damages, demands, claims and costs, including court costs and attorneys' fees (collectively, "liabilities") incurred by the City arising, directly or indirectly, from (a) City's approval and issuance of this conditional use permit, (b) City's approval or issuance of any other permit or action, whether discretionary or non-discretionary, in connection with the use contemplated herein. Applicant/operator shall acknowledge their agreement to this provision by executing a copy of this conditional use permit where indicated, below. Applicant's/operator's compliance with this provision is an express condition of this conditional use permit and this provision shall be binding on any and all of Applicant's/operator's successors and assigns. 14. This permit shall expire five (5) years after the date of its approval by the Planning Commission. After five (5) years, the Applicant may request an extension of this conditional use permit by the Zoning Administrator. The Zoning Administrator shall review this conditional use permit for compliance with the conditions of approval and shall determine, in consultation with the applicant, whether the project needs to be modified from its original approval as part ofthe extension approval. V1. EXECUTION AND RECORDATION OF RESOLUTION OF APPROVAL The property owner and applicant shall execute this document by making a true copy of this Resolution and signing this original Resolution on the lines provided below, said execution indicating that the property owner and applicant have each read, understood and agreed to the conditions contained herein, and will implement same. Upon execution, this document shall be recorded with the County Recorder of the County of San Diego, at the sole expense of the property owner and/or applicant, and a signed, stamped copy returned to the City's Planning and Building Department. Failure to retum the signed true copy of this document within ten (10) days of recordation shall indicate the property owner/applicant's desire that the project, and the corresponding application for building permits and/or a business license, be held in abeyance without approval. Signature of Property Owner Date Signature of Representative Date J 2 -/2 Resolution No. Page 6 VIr. CONSEQUENCE OF FAILURE OF CONDITIONS If any of the foregoing conditions fail to occur, or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals herein granted, deny, or further condition issuance of all future building permits, deny, revoke, or further condition all certificates of occupancy issued under the authority of approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. Developer or a successor in interest gains no vested rights by the City's approval of this Resolution. VIII. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term, provision, and condition herein stated; and that in the event that anyone or more terms, provisions, or conditions are determined by a Court of competent jurisdiction to be invalid, illegal, or unenforceable, this resolution and the permit shall be deemed to be automatically revoked and of no further force and effect ab initio. THIS RESOLUTION OF APPROVAL IS HEREBY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, THIS 13th DAY OF AUGUST 2002. Presented by: Approved as to form by: ~7.~~ F-L- John M. Kaheny City Attorney Robert A. Leiter Director of Planning & Building J :\PLANNING\L YNNETIE\ADMINISTRA TIVE REVIEw\CC-RESO-PCC-02-S0.DOC ¡2.-IC¡ COUNCIL AGENDA STATEMENT Item t9 Meeting Date 8/13/02 ITEM TITLE: Public Hearing to consider the adoption of an ordinance and an urgency ordinance modifying the existing Transportation Development Impact Fee and amending Chapter 3.54 of the Municipal Code Resolution Accepting a report prepared by Willdan recommending an updated Transportation Development Impact Fee to mitigate transportation impacts within the City's Eastern Territories Ordinance Amending the Transportation Development Impact Fee Program, Chapter 3.54 of the Municipal Code Urgency Ordinance Amending the Transportation Development Impact Fee Program, Chapter 3.54 of the Municipal Code Resolution Amending the Fiscal Year 2002-03 Budget by appropriating $826,480 from the Available Fund Balance in the Transportation Development Impact Fee Fund to repay sewer loan authorized by Resolution No. 16706 BY: Director of Public Work~ SUBMITTED REVIEWED BY: City Manager (4/Sths Vote: Yes X No ) The City's Transportation Development Impact Fee (TDIF) Program was established on January 12, 1988 by Ordinance 2251. Since its inception, the program has been updated several times to reflect new land uses approvals, changes to the Circulation Element of the General Plan, and updated project cost estimates. The last TDIF update was approved on November 16, 1999. Tonight, Council will consider the approval of the 2002 TDIF update recommending an increase from the current fee of $6,240 to $8,180 per Equivalent Dwelling Unit (EDU). The proposed Urgency Ordinance will enable the City to collect the fee during the 60-day waiting period before the regular ordinance becomes effective. The public hearing has been duly noticed. RECOMMENDATION: That Council: 1. Conduct the Public Hearing. 2. Approve the Resolution accepting the report prepared by Willdan. 3. Approve the Ordinance amending Chapter 3.54 of the Municipal Code (first reading). 4. Approve the Urgency Ordinance amending Chapter 3.54 of the Municipal Code 5. Approve of the budget amendment appropriating $826,480 from the Available Fund Balance in the TDIF Fund to repay a loan from Sewer fund. BOARDS/COMMISSIONS RECOMMENDATION: The Economic Development Commission has reviewed the proposed increase but offered no recommendation. Page 2, Item /~ Meeting Date 8/13/02 DISCUSSION: 2002 TDIF Update New developments place demands on the existing transportation infrastructure, which can be mitigated by upgrading existing and/or constructing new transportation facilities. Chula Vista's TDIF program functions as a system to distribute the cost of constructing infrastructure facilities in an equitable manner among new development in Eastern Chula Vista. The proceeds from the fee are used to construct new transportation improvements. On August 2001, Council retained Willdan for updating the TDIF program. The amount of the TDIF fee has not been updated since 1999. During this time infrastructure cost and land uses have been modified. The 2002 update incorporates the following major changes: · Addition of Telegraph Canyon Road (I-805 to 200' E/O TC Shopping Ctr.), Main Street (I-805 underpass) widening projects, and East H Street (from 1-805 to 400' east of Hidden Vista). · Removal of East Palomar Street at 1-805 Interchange and La Media Road Bridge Crossing at ' ' Otay Valley projects · Completion of 13 projects or portions of projects · A provision to lower commercial, commercial high-rise and industrial Equivalent Dwelling Unit (EDU) rates · A shift to residential density based on tentative map dwelling units per acre as the fee basis rather than the classic "attached", "detached" and "multi-family" land used categories · Update the project cost estimates to 2002 prices. · Addition of a provision in the municipal code to permit the City, in its discretion, to provide an economic enhancement to developments that provide the City with a long term revenues · Streamlining procedures for authorizing construction Exhibit 1 shows the Project Funding Requirements of $222,807,379. This amount includes $184,115,288 for facility construction, $6,684,221 for Program Monitoring (3% of the TDIF pro,am cost), and $24,756,270 in TDIF credits. The Program Monitoring will fund City's TDIF administration, and the cost of consultants and City staffparticipating in related projects/activities (i.e. fee updates, traffic monitoring program, lobbying the State for more transportation funds). Three percent of the TDIF program cost is $6,684,221. If spread equally over 20 years, the annual revenue would be $334,000 per year for program monitoring costs. The 2002 update recommends a TDIF of $8,180 per EDU. Table 1 below presents the rates for the different land uses. Page 3, Item I~ Meeting Date 8/13/02 Table 1. Proposed Fee ~ ~roposed F~e~e ~, ~ Proposed Eand~Use Classfficat!on~ ~ ~r~9.n,~ i Residential (LOW density) (0-8 $8,180/DU $6,240/DU DU/Acre)) Residential (MED density) (>8-20 $6,544/DU $4,992/DU DU/Acrc) Residential (HIGH density) (> 20 $4,908/DU $3,744/DU DU/Acre) Senior Housing (Unit) $3,272/DU $2,496/DU Commercial (Acre) $171,780/acre $156,000/acre Commemial (High Rise) (Acre) $278,120/aere $249,600/acre Industrial (Acre) $65,440/acre $93,600/acre Medical Center (Acre) $531,700/acre $405,600/acre Golf Course (18 holes) $572,600/course $436,800/course Basis and Methodology The basis and methodology used in calculating the fee in this update is consistent with the basis and methodology used in the "Interim Eastern Area Development Impact Fee For Streets" adopted in January 1988 and also the "Eastern Area Development Impact Fees For Streets" adopted in January 1990. One of the primary assumptions in the formulation of the previous fees is that the need for additional public facilities is generated by new development and the cost of the facilities should be paid by that new development. The first step in this update was to determine which road improvements are required to be constructed in order to maintain an acceptable level of service on the City's circulation system east ofi-805 which are not included in normal subdivision exactions because those segments lie between two or more major developments rather than rumfing through one development. The improvements that are to be constructed will serve the entire benefit area by either providing roads for residents, employees, or customers to use, or by providing new streets for existing traffic, thus freeing up capacity on existing streets that can be used by new development. After reviewing traffic models, development proposals, future connections to SR-125 and 1-805, and land use patterns, a system of local roads that carry traffic beyond limited development areas (i.e.: semi-regional in nature) was adopted. Some roads, which carry a lower volume of traffic, were included because they provided connections to future SR-125 and/or were between future development bubbles and would be needed by more than one of those areas to access other regional routes. The next step was to determine the method upon which the costs for the improvements would be spread. One of the most common tools used to equate benefit impact fees anaong the different land uses and densities is the "Equivalent Dwelling Unit" or "EDU". There is a clear relationship between the use of transportation facilities and the generation of traffic trips based on the land use and density of a specific parcel. As in previous methodologies, this update is based on the report "San Diego Traffic Generators", published by SANDAG. This report details the traffic trips Page 4, Item ~ ~ Meeting Date 8/13/02 generated by various classes of land use. The cost of ail the required improvements has been spread equally based on the number of "Equivalent Dwelling Units" regardless of the location of any particular improvement relative to the development. This update has relied on traffic modeling techniques to determine the percentage of industrial and commercial trips that originate from within the TDIF benefit area that are already counted as part of other land uses in the TDIF program. Only those trips which originate outside of the TDIF benefit area are recommended for determining the fee for the cornmemial and industrial land uses. The analysis justifies reducing the commercial, commercial high-rise, and industrial rates from 25 to 21 EDU's per acre, from 40 to 34 EDU's per acre, and from 15 to 8 EDU's per acre respectively. The proposed street improvements, which are required outside of normal subdivision exactions, are based on an analysis of the cimulation system for various levels of development within the entire area of benefit, which is discussed below. All of proposed street projects included are consistent with the General Plan and Specific Plans that have been adopted by the City Council and are required by the City's Growth Management Ordinance as a condition to all development within the area of benefit in order to maintain acceptable levels of service on the major roadways. The absence of contiguity to the proposed street projects is not essential to conferring a benefit to properties. The area of benefit is based on an analysis of impacts on the total circulation system east of 1-805 for various stages or increments of cumulative development within the total area of benefit. The circulation system must be viewed as a whole. Each of the proposed street projects will provide a benefit to every development because traffic from any one development will utilize the entire system to access work, commerce, schools, residences and the many other land uses throughout the City. It is difficult, if not impossible to isolate the value of any single street to any particular development because of the nature of traffic. A failure in any part of the system will have a negative impact in other parts of the system and traffic from the development closest to an impacted seg~nent of street will be just as affected as traffic from a more distant development. The analogy of a water system is sometimes used where constrictions or breaks in any part of the system will have significant impacts on the whole system. Area of Benefit The TDIF program encompasses most properties within the City's jurisdiction located south of Bonita Road and east of 1-805 (see Exhibit 2). The proposed area of benefit contains a total of 27,236 EDU's. Table 2 below gives a summary of the development forecast within the Area of Benefit. Page 5, Item t~ Meeting Date 8/13/02 Table 2. Development Forecast Project 1999 Total Aggregate EDU's 2002 Total Aggregate EDU's Remaining Remaining Eastlake 9,026 4,386.9 Otay Ranch 22,930 19,353.9 Rolling Hills 1,752 1,270.8 Ranch San Miguel Ranch 1608.7 1,590.7 Bella Lago NA 150 Sunbow 1,551 484.2 TOTAL 36,867.7 27,236.5 The net decrease in Total Aggregate EDU's Remaining is due to building permit activity, changes to EDU credits, the revision to density based residential EDU's, and lowering EDU rates for commercial, commercial high rise and industrial land uses. The 2002 TDIF report has been revised to clearly exclude the area bounded by Assessment District No. 90-2, Otay Valley Road (now Main Street) on the benefit area map. This is consistent with the 1999 and 2002 land use table which never included the EDU's from this area. The area within the Assessment District is excluded from the TDIF boundary because the property owners paid for the Otay Valley Road widening and improvement via the assessment district. Transportation Facilities There are 45 remaining projects within the proposed TDIF program (See Table D). The cost estimate for constructing these roads is $184,115,288, including soft costs. Soft costs include 15% for contingencies, design costs, construction inspection/project management costs, and 2% on each project for the City's project specific administration/audit. This update includes most roads in the current Circulation Element of the General Plan in addition to capacity enhancement projects. These additional projects include.: · Main Street (I-805 underpass) widening · Telegraph Canyon Road (I-805 to 200' E/O TC Shopping Ctr.) widening · East H Street westbound widening (400' east of Hidden Vista) Two projects, East Palomar St. at 1-805 and La Media bridge crossing, were deleted from the TDIF program. Current build-out traffic model scenarios indicate that these projects may be deleted without substantial impacts to traffic circulation. Page 6, Item i.~ Meeting Date 8/13/02 The TDIF program does not include those streets within the area of the Proposed University Site (Villages 9 and 10 of the Otay Ranch). It is anticipated that the University, if approved, would be responsible for constructing suitable transportation facilities. If the University is not constructed and the area develops according to the approved alternative, future updates will incorporate said area and related facilities into the program. This report also excludes the traffic EDU's contained within the proposed University site. TDIF Credit and Change to Credit Process There are a number of developers who have constructed TDIF roads in the past and maintain a credit against future TDIF fees in the estimated total amount of $24,756,270. The credits are summarized in Exhibit 4. Partial TDIF credits are provided to developers when building permits (and TDIF fees) are needed prior to the City acceptance of TDIF facilities. A 50% advance credit is made available to the developer for the time period a~er Director of Public Works has received sufficient bonds and approved the cost estimate but has not approved the bids. Once a bid has been approved, the Developer is provided with a 75% advance credit with the final 25% to be provided after the City has accepted and audited the facility. The existing TDIF Ordinance requires the developer to obtain Council authorization to construct a TDI]: facility. Staff recommends the ordinance be amended to eliminate this step as the authorization is typically granted through the development entitlement process. Additionally, staff recommends amending the ordinance to eliminate the requirement to obtain Council authorization prior to receiving TDIF credit or reimbursement for construction of TDIF roads. Staff recommends the developer direct the request for TDIF credit or reimbursement to the city manager, thereby streamlining the credit issuance process. A minor change in the ordinance is recommended whereby the city manager's designee, not the director of public works, makes the final determination in thd amount of reimbursement or credit at the 50%, 75% or 100% levels. This change is recommended to address organizational changes approved for this year. EDU Rates Government Code 66000 requires that the City establish a reasonable relationship between the projects to be funded and the fee. The TD1F program uses the Average Daily Trip (Al)T) which is converted to the Equivalent Dwelling Unit (EDU) as the tool to equate benefit impact fees among the different land uses. As indicated above, ADT generation rates published by SANDAG are used to determine the impacts of the different land use categories on the transportation system. Each land use category is assigned a specific EDU rate. A low density (0-8 dwelling units/gross acre), residential unit is equal to 10 ADT or 1 EDU. Table 3 presents a comparison between the current and proposed rates. Page 7, Item Meeting Date 8/13/02 Table 3. EDU Rates Single Family Detached 1 EDU/DU Residential Low density I EDU/DU (SFD) (0-8 dwelling units/acre) Single Family Attached 0.8 EDU/DU Residential Medium density 0.8 EDU/DU (SFA) (>8 - 20 dwelling units/acre) Multi Family(MF) 0.6 EDU/DU Residential High density 0.6 EDU/DU (>20 dwelling units/acre) Senior Housing 0.4 EDU/Acre Senior Housing 0.4 EDU/Acre Commercial 25 EDU/Acre Commercial 21 EDU/Acre High Rise Commercial 40 EDU/Acre High Rise Commercial 34 EDU/Acre Industrial 15 EDU/Acre Industrial 8 EDU/Acre Medical Center 65 EDU/Acre Medical Center 65 ED[l/Acre Golf Course (18 holes) 70 EDU/course Golf Course 70 EDU/course Following is a brief discussion on the EDU rate schedule: · The SANDAG Report ("San Diego Traffic Generators") identifies several categories of residential land use generating average daily thps (ADT's) ranging fi.om 12 to 4 ADT's. The City historically has refined the SANDAG approach and has identified four categories based on the type of residential structure whether attached, detached, multi family or senior housing, which also related to the density of the residential development according to the SANDAG Report. This TDIF update eliminates the reference to product type and is based solely on the density of the residential development as a more accurate reflection of housing development within the Area of Benefit. The City, therefore, recommends the following: 10 ADT's generated fi.om aresidential unit with densities ranging on average fi.om 0 to 8 dwelling units per gross acre; 8 ADT's fi.om a residential unit with densities ranging fi.om greater than 8 to 20 dwelling units per gross acre; 6 ADT's fi.om a residential unit with greater than 20 dwelling units per gross acre; and 4 trips from a unit in a senior housing complex. · As part of this TDIF update, a traffic analysis of the industrial trip origin and destination was performed. This analysis was conducted to determine the percentage of the industrial trips that originate fi.om within the TDIF benefit area that are already counted as part of other land uses in the TDIF program. The analysis found that approximately 60 percent of the industrial trips are generated fi-om within the City of Chula Vista TDIF area and 40 percent are fi.om outside the TDIF area. Thus, the SANDAG industrial trip rate of 200 ADT could be reduced by up to 60 percent or to 80 trips per acre (8 EDU's per acre). This reduces the industrial trip generation rate fi.om 150 trips per acre (1999 TDIF Update) to 80 trips per acre. Page 8, Item [~ Meeting Date 8/13/02 · For commercial development, as in previous updates, the "pass-by" trip phenomenon was included in setting the generation rate. Pass-by trips (also called undiverted linked trips) are trips in which a stop at a retail commercial facility is one part of a linked trip to or from home or work. In addition to the pass-by phenomenon, a traffic analysis for the commemial trip origin and destination was also performed as part of this TDIF update process. The analysis found that approximately 70 percent of the commercial trips are generated from within the City of Chula Vista TDIF area and 30 percent are from outside the TDIF area. Thus, the commercial trip rate for the purpose of the TDIF program could be reduced by up to 70 percent. Since the analysis was conducted using a Select Zone Analysis forecast for a representative Traffic Analysis Zone that had a SANDAG commemial trip rate of 700 trips per acre, the recommended TDIF commercial trip rate is 30 percent of 700 trips per acre or 210 trips per acre (21 EDU's per acre). (See attachment for additional information.) · Based on the results of the traffic analysis for commercial land uses including commercial high rise, staff recommends a proportionate reduction in the high rise commercial trip generation rate from 400 trips to 340 trips per acre (34 EDU's per acre). Meetings with the Development Community Staff has had numerous meetings with the development community throughout the update process. Issues raised by the developers were discussed and resolved. As a result of these discussions, several changes and modifications were incorporated into the program. Generally, the development community reviewed the fee proposal to ensure that cost estimates were not too high or low and to ensure that land uses were consistent with current entitlement information. The development con'ununity did not express to staff any strong opposition to the fee proposal. However, McMillin recommends that the commercial rate be further reduced to 120 trips per acre (12 EDU's), that the high rise commercial rate be based on square footage instead of gross acre for buildings 5 stories and higher, and that the city add an office building category. Corky McMillin Companies recommended the commemial rate reduction be based on a commercial vehicle trip generation rate of 400 trips per acre. Applying the 70% reduction would yield 120 trips : per acre (30% of 400) or 12 EDU's. Staffrecommends the reduction be based on 700 trips per acre, applying the 70% reduction yields 210 trips per acre or 21 EDU's. In reviewing SANDAG trip generation rates which range between 90 trips per acre and 2000 trips per acre and for the various commercial land uses, staff believes the 700 trips per acre, typical for community shopping centers, to be a more representative figure for the commercial development in the Eastern Territories- Staff recommends that a comprehensive analysis for the high rise commercial rate and the office category rate be deferred for a furore update of the TDIF program after adoption of the General Plan update. The specific uses anticipated for the high rise commercial land uses are not yet known and staff recommends deferring additional change to this land use category until such time as additional information is available. Staff further recommends that consideration of a medium or high-rise office rate be deferred as all of the medium to high-rise office acreage is expected to be located within the Eastern Urban Center, the land use mix and character of which is being refined at the present time. Upon refinement of the land use mix and character of the Eastern Urban Center, the medium or high-r/se office land use character will be known and it would be appropriate for Council to consider a change to the TDIF program to add such a category. Page 9,1tem -~;: Meeting Date 8/13/02 La Media Bridge Crossing The 1999 Transportation Development Impact Fee (TDIF) program included funding for 50% of a bridge crossing over Otay River Valley as part of the La Media Road project at the City's southerly boundary. To date, neither the County of San Diego nor the City of San Diego have funded the other 50% of the bridge. A preliminary traffic analysis was conducted as part of the 2002 TDIF Update to analyze the need for the bridge. The outcome of the forecast appeared to conclude that traffic volumes in eastern Chula Vista will actually improve should construction of this segment of the City's circulation element in the eastern territories be delayed past the year 2020. Furthermore, the usefulness of the bridge to Chula Vista will diminish in the build out scenario once toll fees on SR125 are elithinated. As such, it is premature, burdensome, and unwarranted to commit to 50% funding of the bridge by the TDIF program. The 1999 bridge cost at 50% was approximately $8 million which represents 3% of the overall TDIF program cost. In addition, along with changes to the land uses, circulation Plan changes are expected due to the upcoming General Plan Update and as an outcome of the ongoing City of San Diego and County's planned land use changes in Otay Mesa. Therefore, it is staff's reconunendation that the City's participation in the cost of constructing this crossing be revisited with the next update in connection with other expected General Plan changes. As an example of these possible changes, Main Street (between Rock Mountain Road and SR 125) is being considered for deletion as a circulation element in the next General Plan update. It is recommended that the City cooperate with the City and the County of San Diego in the furore to define the City's participation. Gross Acreage Gross acreage as it applies to the commercial, high rise commercial, industrial and medical center development types, means all land area within the boundary of the parcel or parcels of the development project for which building permits are being requested. As a development project moves through the entitlement process fi.om General Development Plan (GDP) to Sectional Planning Area Plan (SPA) to Tentative and Final Maps, the developable gross acreage changes and typically decreases. The attrition of acreage for these development types is addressed by frequent updates of the TDIF program. Each update of the TDIF program includes information fi.om the latest entitlement documents. The intent of the fi:equent updates is to maintain a viable TDIF program that reflects dynamic development and minimizes the impact of any acreage reduction. Enviroumental Review The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Although environmental review is not necessary at this time, environmental review will be required prior to the approval of final design plans and the awarding of construction contracts for facilities fimded through Transportation Development Impact Fees. It should also be mentioned that the TDIF Page 10, Item /.~ Meeting Date 8/13/02 program includes funding for habitat mitigation that may be triggered by the construction of the facilities. Proposed Ordinances and Economic Incentive Credit By amending Chapter 3.54 of the Municipal Code, Council will establish a new TDIF rate of$8,180 per EDU, will modify the number of EDU's for various land uses, will streamline the developer TDIF process, and will amend the existing TDIF program to include all the properties and transportation facilities identified in the report. In addition, the amendment would enable the city to receive an Economic Incentive Credit, similar to the developer's credit, for TDIF eligible projects that the City funds, aside fi.om current TDIF funding soumes. The Economic Incentive Credit could be used to offset TDIF costs for projects that the Council deems beneficial to the City. With this change, the Council has the option to receive an Economic Incentive Credit and use it for specific projects. The overall TDIF program cost will not be affected by the change. However, the development community will now have an opportunity to offset the cost of their TDIF obligations for their projects if Council deems their project beneficial to the City and authorizes use of the Economic Incentive Credit. Projects previously being funded by the City or funds previously committed to the TDIF program will not be eligible to be converted to Economic Incentive Credits. This ordinance will become effective 60 days after the second reading. Assuming that the second reading and adoption of the TDIF update takes place at the August 20th Council Meeting, the new fee will be in effect as of October 19, 2002 and collected with building permits issued on or after October 19, 2002. The "Urgency Ordinance" would go into effect immediately and will enable the City to collect the fee during the 60-day waiting period for the regular ordinance to become effective. This ordinance is only valid for 30 days (fi.om August 13 through September 12), and therefore, it will be necessary to notice and hold a second and third hearing in order to extend the urgency ordinance in 30 day increments until the permanent ordinance becomes effective. An approval of 4/5th'S vote will be needed for all urgency Ordinances. Staff recommends that the TDIF go into effect immediately by adopting the Urgency Ordinance in order that all developments pay their fair share of the cost of public transportation improvements relating to the impacts caused by their development. Immediate implementation of this fee is necessary due to the current and immediate threat to public safely which will result should there be a shortfall in the amount of money necessary to pay for the various transportation facilities thereby resulting in severe congestion and failure 0fthe public transportation network necessary to serve the increased population. The prospect of a shortfall, failure of the street system and concerns about an increased charge to remaining property owners constitutes a current immediate threat to the public health, welfare and safety justifying the inunediate imposition of this fee. Appropriation of TDIF funds In 1992, during the Assessment District No. 90-02 proceedings for the Otay Valley Road project (Main Street), Council approved, by Resolution 16706, a loan fi.om the sewer fund of $420,000 to the TDIF Fund to offset the cost of the assessments to the property owners in that area. The loan amount and the interest on the loan have been built into the TDIF program. Staff recommends that the loan be repaid this fiscal year. The estimated amount for repayment of the loan including interest is $826,480. A 4/5ths vote is required for the budget amendment. Page 11, Item /~ Meeting Date 8/13/02 FISCAL IMPACT: The Transportation Development Impact Fee, as for all of the City's Development Impact Fees, maintains funds separate funds from the general fund. There is no impact to the general fund from the TDIF update except the latent cost of additional maintenance as the circulation network increases. These maintenance costs may be offset with additional gas tax funds resulting from the increased traffic. Approval of tonight's resolutions includes a budget amendment appropriating $826,480 from the Available Fund Balance in the TDIF Fund to repay a loan from Sewer Fund. Exhibits: 1. Program Funding Requirements 2. Area of Benefit 3. Transportation Facilities 4. TDIF credits 5. Letter from Luce Forward dated August 2, 2002 Athachment: Engineer's Report 0730-95 HX068 and HX 001 J:\EN GIN EERXaGENDAX2002TD1FUpdate.doc dds 8/7/02 12:01:18 PM /Z Exhibit 5 LUCE FORWARD ,oo VIA FACSIMILE/U.S. MAIL August 2, 2002 26809-2 Chula Vista City Council c/o City Clerk 276 Fourth St. Chula Vista, CA 91910 Re: Transportation Development Impact Fe: Update Dear Honorable Mayor Horton and City Council Members: This firm represents Otay Land Company, LLC ("OLC"), a land owner within Otay Ranch. ! am writing in regard to the City's Transportation Development Impact F~ ("TDIF") 2002 Update, which you are scheduled to consider on Augusl 6th. OLC urges you to adopt the proposed TDIF increase at your August 6~h heanng. The fee adjustment is necessary to fund infrastructure vital to Olay Ranch and delays m the adoption of the Update result in the loss of revenues to fund this infrastructure. We also would like to thank staff for their hard work on the Update and willingness to consider OLC's comments and concerns. We would tike to take this opportunity to bring tN'ce issues to your attention, including (i) the proposed deletion of $8,000,000 ftu~ding for La Mexlia, (ii) the TDI'F definition of"gross acreage," and (iii) the absence of funding for Rock Mountain Road and Main Stmet/Otay Valley Road crossings over SR 125. We re>quest that you address points (i) and (ii) in connection with this Update. Thc third issue may be dcferrcd until the next TDIF Update. Fh'st, the proposed TDIF eliminates funding for the La Media bridge crossing of Otay Valley. Our concern is that La Media is identified in the General Development Plan ("GDP") as a necessary roadway for Otay Ranch circulation. The proposed elimination of funding effectively remove this portion of La Media from the GDP. OLC il~ concerned that the effects of such removal are not known and have not been considered by the City Council and public. For example, traffic which would have used La Media now will burden other roadways. The necessary infrastructure to accommodate thc additional traffic and the mechanism to fund these improvements ate not apparent on the face of thc Update, Thus, OLC requests that the City Council refrain from eliminating funding for thc La M=dla bridge until furthm- analysis is eomp[eted. Lu_c~ Forward et, al. 8/2/02 3:16: PAGE 3/4 RishtFAX LUCE FORWARD Chula Vista City Council August 2, 2002 Page 2 Second, the staffhas indicated its intention to clarify the definition o£"gmss a~reage" as that term is used in Section 2.C of the proposed Ordinance. As presently drafted, thc calculation of gross acreage tbr commercial, high rise commercial, industrial and medical eent~ development is not clearly defined. An objective definitian is necessary to ensure thai adequate fees are collected and to avoid gamesmanship in fee calculation. Finally. OLC h~ been negotiating in good faith with Sa~ Diego Expressway Limited Partnership, also known as CTV, for the conveyance of right-of-way for SR 125. Recently, CTV revealed that it will not construct erosgings at Rock Motmtain Road or Otay Valley Rd./Main Street when it builds SR 125. All other SR 125 crossings or interchanges will be constructed concurrently with the toll road. The City's contract with CTV does not assure ttmt crossings will be constracted at Rock Mo',mtain Road or Olay Valley Rd./Main Sheet when needed. As presently financed by the TDIF, Rock Mountain/Alta Rd. and Olay Valley/Main Street will dead-end when they meet SR 125, ~nd then pick up again on the other side of SR 125. The proposed TDIF does not correct this obvious gap in financing. Consequently, SR 125 will effectively sever OLC's property. We believe there are two potential solutions to this serious problem. First, CTV can, and should, construct all interchanges and crossings concurrently with the construction of SR 125. Absent this commitment, we urge Ihe City Council to consider a future TDIF modification to include funding for a crossing structure at one of the intersections, preferably Rock Moantain Road. The Rc~,k Mountain Road crossing, qualifies for inclusion in the TD~ as a critical east-west link 'through Olay Ranch. Stattreeently indicated that it believes Rock Mountain Road as presently planned will be at a lower elevation than SR 125, such that no crossing structm-e is requked. However, OLC's engineer, the Keith Companies, indicates that a crossing structure will be We will continue to work with City staffto accomplish this important change, which will reduce the possibilily oflraffie problems in the southern portion of the Benefit Area a~fl ensure equality of access to SR 125 for all segments of the benefit sea. 1765787.1 [Wordl L~!c~ Forward st. al, 8/2/02 3:16: PAGE 4/4 RightFAX LUCE FORWARD Chul~ Vist~ City Council August 2, 2002 Page 3 In summary, we urge the Council to approve the Update with the inclusion of funding for La Media Road and a cl~fieation of the definition of"gross acreage." Finally, we a~k that in a fl]ture TI)IF Update the Council provide funding for a Rock Mountain Road/SA 125 crossing. Thank you for this opportunity to comment upon the TDIF Update. Plea~ feel free to contact me with any questions. ~/CE, FOR'WARD, HAMILTON & SCRIPPS LLP JAC/jr cc: Ann Moore, Esq- (via fax) Mr. George Kremple (via fax) Alex Alagha (via fax) Mr. Simon Malk (via fax) 17657z7.! [Word] COUNCIL SUPPLEMENTAL INFORMATION RELATED TO THE 2002 TDIF UPDATE. Analysis of Commercial use trip generation rates. Corky McMillin Companies recommended the commercial rate reduction be based on a commercial vehicle trip generation rate of 400 trips per acre. Staff recommended that generation rates be based on 700 tnps per acre. In reviewing SANDAG trip generation rates, which range between 90 trips per acre and 2000 trips per acre for the various commercial land uses, staff believes the 700 trips per acre, typical for community shopping centers, to be a more representative figure for the commercial development in the Eastern Territories. In San Diego region, SANDAG publishes a "Brief Guide of Vehicular Traffic Generation Rates". These rates are used in most of our Traffic Impact studies related to Environmental Impact Reports and other entitle~nent documents. These trip rates are an estimate based on empirical data of weekday vehicle trip generation al the "driveway". In addition, these rates are estimated based on both acreage and building square footage. SANDAG groups commercial and retail ]and use as follows: Type Description Trip Rate Trip Rate per per 1000 Sq. Acre Ft. Super Regional More than 60 acres, more than 600,000 40 400 Shopping Center sq. ft. with 3 or more major stores Regional Shopping 30-60 acres, 300,000-600,000 sq. ft. 50 500 Center with 2 or more major stores Community 10 to 30 acres, 100,000-300,000 sq. ft. 7O 70O Shopping Center with 1 or more major stores Neighborhood Less than 10 acres, less than 100,000 120 1200 shopping center sq. ft. with grocery, beauty shop etc. Various Commercial Varies between 90 trips per acres for shops Garden Nursery to 2000 trip per acre for 6-850 90-2000 a Supermarket. Mixed use Commercial supermarket with 110 2000 Comm. residential 5 / D. Units 200 Resid. In 1992~ SANDAG used Terra Nova Plaza in their trip generation studies. A summary of the subject the study along with the trip rates table is hereby attached. Terra Nova Plaza has 31.1 gross acres and 295.185 sq. ft. of gross floor area. The study concluded that on an average weekday, Terra Nova plaza generates 745 trips per acre. Another factor which enters into the decision to select 700 trips per acre as the representative basis for all commercial use in the TDIF is the fact that the higher trip generating commercial uses tend to have a larger percentage of "passerby trips". That is, trips which are already using that same roadway on the way to or from other origins or destinations and stop at those commercial uses as they "pass by". The 700 trip per acre recommended in the 2002 TDIF repor~ is a representation of an "average" commercial with full recognition that some smaller shopping center may generate much higher trips and some larger centers will generate lower trips. Since specific commercial land use information are not available at the CDP and SPA levels to assess specific trip rates, staff recommends the 700 trip rate as an "average" rate for Eastern Chula Vista J:\¢ngineerXaGENDA\Council supplemental information related to the 2002 TDIF update.doc TRIP GENERATION STUDY SUMMARY Name of Study Site Terra Nova Plaza Study CBC-4 Location East H Street, ~1-805 (City of Chula Vista) Type of Facility Community Shopping Center Date June 22-24, 199Z BACKGROUND DATA NA Employees 295,185 Square Feet of Gross Floor Area 31.1 Acres (gross) 1,495 Parking Spaces 50 Tenants TRAFFIC DATA Traffic % of Volumes*' AWDT Average Weekday Vehicle Trip Ends (AWDT) 23, IB0 Highest A.M. Enter 381 Traffic Hour of Between Exit 408 Volumes" Generator 6 and 9 Total 789 3.4% Saturday Vehicle Trip Ends NA During P.M. Enter 1025 Peak Enter Commuter Between Exit 982 Hour of Exit Peaks 3 and 6 Total 2007 8.7% Generator Total Peak A.M. Enter 792 Sunday Vehicle Trip Ends NA Hour of 11:00- Exit 842 Peak Enter Generat~r 12:00 noon Total 1634 7.1% Hour of Exit P.M Enter 1025 Generator Total 4:00- Exit 982 5:00 Total 2007 8.7% TRIP RATES Weekday Saturday Sunday Trips/Employee NA Trips/1000 Sq. Ft. of GFA 78.5 Trips/Acre 745 Trips/Parking Space 15.5 Trips/Tenants 464 - 9 - CSC - /g CSC - 4 TERRA NOVA PLAZA Terra Nova Plaza is the largest of the community shopping centers that has been surveyed for this manual, This popular center contains 50 stores, which include a Marshall's department store, VoWs grocery store, Long's drugstore, two sporting goods outlets, more than a half dozen restaurants (fast food and sit-down), an on-site service station, and numerous service and retail shops. The center is surrounded by hills; and, all of the center's four driveways access only one major arterial. No on-street parking is permitted. - 8 - CSC - TRIP GENERATION STUDY SUMMARY Name of study site Rancho San Diego Village Study CSC - 3 Location Rancho San Diego ( County of San Diego) Type of facility Community Shopping Center Date May 13 - 20, 1981 & April 27 & 28,1983 BACKGROUND DATA N.A. Employees 171,360 Sq. Ft. of gross Floor Area Occupied (92%) (Total Gross Floor Area = 185,671 sq. ~.) 19.3 Acres 928 Parking Spaces 38 Tenants TRAFFIC DATA Traffic % of Volumes AWDT Average Weekday Vehicle Trip Ends (AWDT) 9,806 Highest A.M. Enter Traffic Hour Between Exit Volumes of 7 and 9 Total 260 2.7% Saturday Vehicle Trip Ends 8,020 Generator during P.M. Enter Peak Enter Commuter Between Exit Hour of 11:30 A.M. - Exit Peaks 4 and 6 Total lr035 10.6% Generator 12:30 P.M. Total 1,000 Peak A.M_ Enter Sunday Vehicle Trip Ends 6,460 Hour 11:00 -- Exit Peak P.M. Enter of 12:00 (noon) Total 810 8.3% Hour of 12:00 (noon)-- Exit Generator P.M. Enter Generator 1:00 Total 3:45 - Exit 780 4:45 Totm 1,067 10.9% TRIP RATIOS Weekday Saturday Sunday ....T.r.i p. s./.E.m.p. Ip y.e .e ..................... N...A... ............. .N.. ,/~. · . .....N.A. .... ....T. rjn. s/.1.0.0.0,S.q..F.t...o.f.c~ .F.A .............. S.7. ............... 47. .............. 3~ ..... Trips/Acre 508 415 334 Trips/Parking Space 11 . .9.. .7. · ....T. rjp. s/.T.e.n.an.t. ....................... 2.5.8. .............. ~11 ............. .~7~ ..... - 7-CSC - Vehicle Occupancy = 1.41 Persons per auto {Weekday) Study CSC-1 - Date: August 12, 1982 Time: 12:45 - 4:45 P.M. (Inbound) RANCHO BERNARDO TOWNE CENTER This community shopping center is just a part of a large commercial area in the City of San Diego's most northerly community, Rancho Bernardo. This may explain why the traffic generation rate is higher than the other community shopping centers. Stores include the typical grocery store (Von's), bank, savings and loan, liquor, some restaurants (Monterrey Jack's), and several retail and service shops. Almost all of this center is several hundred feet from public streets, so on-street parking does not affect generation rates. '"':' COMMUNITY SHOPPING CENTERS COMPARISON RANCHO PLAZA RANCHO BERNARDO DE LAS SAN TOWNE CUATRO DIEGO TERRA SITE CENTER RANDERAS VILLAGE NOVA AVERAGE RANGE Study Number CSC-1 CSC-2 CSC-3 CSC-4 Study Date 8/82 7/82 5/81 8 4/83 7/92 BACKGROUND DATA Employees 273 227 NA NA Sc~uare Feet of Gross Floor Area Occupied 128.965 159.610 171,360 295.185 (Total G.F.A.) (139.545) (186.222) (185.671 ) Acres (Gross) 15.8 17.4 19.3 31.1 Parking Spaces 812 653 928 1,495 Tenants 22 43 38 50 ]'~AFFI~ DATA Average Weekday Traffic (AWDT) 13,320 8,630 9.806 23,180 Sa:urday Traffic 12.16D 8.000 8,020 NA Sunday Traffic 9.160 4.960 6.460 NA AIr Peak Hour % of AWDT 3.3% 32% 2.7% 34% 3.2% 2.7%.3~4% P.M Peak Hour % of AWDT 8.8% 10.7% 10.6% 8.7% 9.7% 8.7%-10.7% Vehicle Occupancy (Persons per Auto) 1 41 1.37 1 47 NA 1.42 1.37-1.47 TRIP RATI(~; Weekday Trips Per... Employee 49 38 NA NA 44 38-49 10D9 Sq. Ft. of G.F,A Occupied 103 54 57 '78 73 54-103 Acre 843 496 508 745 648 496-843 Parking Space 16 13 11 15 14 11-16 Tenant 605 201 258 464 382 201-605 Reference: San Diego Traffic Generators Report-July 1998 Revised July 1998 /3 - zo - 1-CCC- OVERALL SUMMARY TABLE TRAFFIC ;ENERATORS 24,-HR. TRIP* 24.-HR. TRIP* FACILITY AWDT RATE FACILITY AWDT RATE Banks Average Rate 7.6 'Trips per 1,000 Square Feet Rental Self-Storage California First 3,211 240 'Trips per 1,000 Square Feet Southwest 904 289 Poway Storage 96 3.0 lvlitsubishi 910 151 Lively Center Storage 65 3.2 Security Pacific 1,918 135 Brandon Mini-Storage 49 1.6 Average Rate 204 Melrose Mini-Storage 34 1.2 Lock-it Lockers 119 2.~0 *Trips per Drive-through Lane Average Rate 2.2 California First (4) 1,440 360 First Interstate (2) 772 386 Scientific Research & Development Security Pacific (2) 320 160 *Trips per 1,000 Square Feet Southwest (5) 726 145 Johnson & Johnson Average Rate 263 Biotechnology Center 194 8.8 IVAC Corporation 3,280 10.4 Community Shopping Centers TRW/LSI Products 1,248 8.6 'Trips per 1,000 Square Feet Nissan Design International 140 3.5 Rancho Bernardo Towne Center 13,320 103 Salk institute 2,002 6.3 Plaza de Las Cuetro Banderas S-Cubed Corporation 612 10.8 (4-Flags) 8,630 54 Torrey Pines Science Park 5,484 Terra Nova Plaza 23,180 78 Ave rage Rate 8.1 Rancho San Diego Village 9,806 5_Z7 Average Rate 73 Lodging 'Trips per Occupied Room Neighborhood Shopping Centers 'Trips per 1,000 Square Feet HOTELS (w/convention facilities/restaurant) Towne & Country 7,120 101 San Diego Hilton 2,546 11.2 Tierrasanta II 5,280 110 Hyatt Islandia 3,308 9.8 Patm Plaza 8,240 176 La Jolla Village Inn 2,190 11.9 Westwood Center 4,540 8~1 Hanalei 3,473 9.~0 Average Rate 117 Average Rate 10.5 MOTELS Discount Retail Clubs Vagabond inn 378 8.6 'Trips per 1,000 Square Feet Fabulous [nn& E-Z 8 Motel 2,174 8.__9 Price Costco - Cartsbad 6,094 52 Average Rate 8.8 Price Costco - San Diego (Morena) 8,953 61 RESORT HOTEL Pdce Costco - Santee 9,164 7--5 Vacation Village 2,710 7.8 : Average Rate 63 Prise Club (Old Santee site) 7,490 78 Commercial Offices 'Trips per 1,000 Square Feet Industrial/Business Parks 'Trips per 1,000 Square Feet STANDARD (<100,000 sq. ft.) Convoy Ct./St. Parks 5,646 28.0 Industrial indemnity Bldg. 698 20.3 Sorrento Valley Blvd./Ct. Beta Bldg. 370 12.6 Complexes 8,710 14.3 Park Camino Bldg. 1,584 28.5 Ronson Court 3,548 17.5 2181 E.C.R. Bidg. 168 16.8 Pioneer Industrial Project 384 9.7 Camino Real Financial Center 143 22.7 Sorrento Valley 16,255 15.7 Average Rate 20.2 Torrey Pines Business & LARGE "HIGH-RISE" (>100,000 sq. ft.) Reseamh Park 2,958 13.0 Mission Valley Financial Center 3,386 18.5 Ridgehaven Court 3,696 20.9 Lion Plaza Bldg. 1,758 16.8 Ponderosa Avenue Industrial 1,478 10.1 Crossroads Limited Bldg. 1,872 15.7 Average Rate 16.2 Average Rate 17.0 Industrial Parks (No Commercial) 'Trips per 1,000 Square Feet Sorrento West 3,710 7.3 Roselle Street 3,728 10.4 Stromesa Court 688 5.~1 (over) 7 / ~ ~-~----"1 Revised July1998 OVERALL SUMMARY TABLE TRAFFIC GENERATORS 24-HR. TRIP' 24~HR. TRIP* FACIUTY AWDT RATE FACILITY AWDT RATE Corporate Offices (single user) Residential (cont.) 'Trips per 1,000 Square Feet SINGLE FAMILY DETACHED (3-6 DU/acre) Equitable Life 744 13.8 University Gardens Et Villas 2,763 11.9 5 of A Processing Center 1,034 9.4 Paradise Hills ~3 2,499 9.5 Home Federal Processing Center 2,398 5.3 Rancho El Cajon 472 11.5 Trade Services Publications 584 7.1 Pasatiempo 1.382 10.9 IRT Corporation 692 7.7 Mar Lado Highlands Park 3,658 ~, Earl Wolls Et Associates 272 18.1 Average Rate 10.4 Four Winds International Hdqtrs. 638 70 Average Rate 9.8 CONDOMINIUMS (6-20 DU/acre) Park Lane Townhomes 314 6.8 Medical Offices Helix Village 236 11.2 'Trips per 1,000 Square Feet Telegraph Canyon Terrace 315 9.8 Chula Vista Doctors' Park 1,123 46.8 Friar's Village 2,940 6.7 Parkway Medical Group 1,106 62.8 Mission Village 1.587 6.3 Campus Medical/Dental Center 1,366 52.7 La Costa (9 complexes) 1,807 6.7 Average Rate 54.1 Average Rate 7.9 Post Offices MILITARY HOUSING (6-20 DU/acre) 'Trips per 1.000 Square Feet (walk-in only) Howard Gilmore Terrace 1.406 6,1 Poway P.O. 3,097 213 Terrace View ViE[as 1. San Marcos P.O. 2,382 155 Average Rate 5.6 Average Rate 204 'Trips per 1,000 Square Feet (w/mail drop-off lane} MILITARY HOUSING (less than 6 DU/acre) Poway P.O. 5,063 348 Pomerado Terrace 906 8.3 San Marcos P.O. 3,450 284 Average Rate 316 Restaurants 'Trips per Mail Drop-off Lane 'Trips per 1,000 Square Feet Poway P.O. 1,966 1,966 DELICATESSEN San Marcos P.O. 1,066 1.068 Judi's Deli 142 154 Average Rate 1,517 Deli-Up 168 97 Montagu's Park-and-Ride Lots Average Rate 134 'Trips per acre (gross/fenced area} La Costa Ave. 583 360 Miscellaneous Carmel Valley 508 493 'Trips per 1,000 Square Feet Carlsbad/Route 78 473 464 Mann Ranch Bernardo 6 Theaters 2,178 78 : La Mesa 176 429 Alpha Beta Et Central Liquor 3,864 169 Santee 160 216 Von's 4,830 151 El Notre Parkway 202 459 San Diego International Airport 31,856 74 Birmingham 246 282 Skyline Ranch (Senior Mobile Average Rate 386 Home Park) 533 2.4/unit Wilson Auto Center 588 17 Residential Uptown District 'Trips per dwelling unit Commercial 13,247 112 ESTATE (1-2 DU/acre) Residential 1,529 4.9/unit La Jolla Kirjah Park 345 11.9 Golf Driving Range 778 14/tee-box Rancho Jamul Estates 446 9.1 (Gated, nor used in average rate) Explorer Ridge Estates 1,150 12.9 McMillan Jamacha 762 11.4 Hidden Mesa-Vista 732 1 Average Rate 11.8 BRIEF GUIDE OF VEHICULAR TRAFFIC GENERATION RATES FOR THE SAN DIEGO REGION RESOLUTION NO. 2002-_ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A REPORT PREPARED BY WILLDAN RECOMMENDING AN UPDATED TRANSPORTATION DEVELOPMENT IMPACT FEE TO MITIGATE TRANSPORTATION IMPACTS WITHIN THE CITY'S EASTERN TERRITORIES WHEREAS, on August 2001, Council retained Willdan for updating the Transportation Development Impact Fee (TDIF) program; and WHEREAS, the amount of the TDIF fee has not been updated since 1999, however, during this time infrastructure cost and land uses have been modified; and WHEREAS, the 2002 update incorporates the following major changes: · Addition of Telegraph Canyon Road (1-805 to 200' E/O TC Shopping Ctr.) and Main Street (1-805 underpass) widening projects. · Removal of East Palomar Street at 1-805 Interchange and La Media Road Bridge Crossing at Otay Valley projects · Completion of 14 projects or portions of projects · A provision to lower commercial, commercial high-rise and industrial Equivalent Dwelling Unit (EDU) rates · A shift to residential density based on tentative map dwelling units per acre as the fee basis rather than the classic "attached", "detached" and "multi-family" land used categories · Update the project cost estimates to 2002 prices. · Addition of a provision in the municipal code to permit the City, in its discretion, to provide an economic enhancement to developments that provide the City with a long term revenues · Streamlining procedures for authorizing construction NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the report prep¡;tred by Willdan recommending an updated Transportation Development Impact Fee to mitigate transportation impacts within the City's Eastern Territories. Presented by Approved as to form by John P. Lippitt Director of Public Works ~c John . heny ~ -' City Attorney J:\attomey\reso\ wil1dan TDIF report /6-25 ORDINANCE NO. AN ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 3.54, RELATING TO DEVELOPMENT IMPACT FEE TO PAY FOR THE TRANSPORTATION FACILITIES IN THE CITY'S EASTERN TERRITORIES WHEREAS, in January 1988, the City Council of the City ofChula Vista adopted Ordinance No. 2251 establishing a development impact fee for transportation facilities in the City's eastern territories; and WHEREAS, pursuant to Ordinance No. 2251, the City has commenced the collection of development impact fees to be used to construct transportation facilities to accommodate increased traffic generated by new developrnent within the City's eastern territories; and WHEREAS, Ordinance No. 2251 as amended by Ordinance Nos. 2289, 2348, 2349, 2431, 2580, 2604, and 2671 were repealed by Ordinance No. 2802 in January 1999; and WHEREAS, by Ordinance 2802, the Transportation Development Impact Fee was placed in Municipal Code Chapter 3.54; and WHEREAS, Municipal Code Chapter 3.54 was amended by Ordinance 2823; and WHEREAS, the City Council of the City ofChula Vista is placing this ordinance on its first reading which will increase the development impact fee (per equivalent dwelling) unit to finance transportation facilities within the City of Chula Vista; and WHEREAS, pursuant to Government Code Section 66017(a), the fees increased by this ordinance will not become effective until sixty (60) days after its second reading; and WHEREAS, the average daily trips for residential development shall be based on its density, and WHEREAS, pursuant to the Municipal Code and California Government Code Sections 66000, et. seq., the City Council has caused a study to be conducted to reanalyze and reevaluate the impacts of development on the transportation system for the City's eastern territories and, further re-analyze and evaluate the development impact fee necessary to pay for the transportation facilities which financial and engineering study prepared by Willdan, is entitled "Eastern Area Development Impact Fess for Streets" dated July 2002; and -1- 18~2k WHEREAS, the financial and engineering studies and the City's General Plan show the transportation network will be adversely impacted by new development within the eastern territories unless new transportation facilities are added to accommodate the new development; and WHEREAS, the financial and engineering studies and the City's General Plan establish that the transportation facilities necessitated by development in the eastern territories comprise and integrated network; and WHEREAS, the City's Municipal Code authorizes the City Council to amend or modify the list of projects to be financed by the fee; and WHEREAS, on August 6, 2002, the City Council of the City of Chula Vista held a duly noticed meeting at which oral or written presentations regarding the development impact fee for the City's eastern territories could be made; and WHEREAS, the City's Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA, and NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: SECTION I: Findings The City Council finds that developers ofland within the Eastern Territory should be required to mitigate the burden created by development through the construction of transportation facilities within the boundaries of the development, the construction of those transportation facilities outside the boundaries of the development which are needed to provide service to the development in accordance with City standards and the payment of a development irnpact fee to finance the development's portion of costs of the transportation network; and, The City Council finds that the legislative findings and determinations set forth in Ordinance No.2802 continue to be true and correct; and The City Council finds, after consideration of the evidence presented to it including the "Eastern Area Development Impact Fees for Streets" dated July 2002, that certain amendments to Chapter 3.54 of the Chula Vista Municipal Code are necessary in order to assure that there are sufficient funds available to finance the transportation facilities necessary to serve the eastern territories by the development impact fee; and, -2 - (? <r7'" :J~t:..- The City Council finds, based on the evidence presented at the meeting, the City's General Plan, and the various reports and information received by the City Council in the ordinary course of its business, that the imposition of traffic impact fees on all development in the eastern territories for which building permits have not been issued is necessary in order to protect the public health, safety and welfare and in order to assure effective implementation of the City's General Plan; and, The City Council finds that the amount of the amended fees levied by this ordinance does not exceed the estimated cost of providing the transportation facilities; and, The City Council finds that it is appropriate to refine the fees for industrial and commercial land uses, including high rise commercial, to reflect the findings of the analyses of the industrial and commercial trip origination and destination whereby only estimated trips generated from outside the Transportation Development Impact Fee boundary shall be used in determining the fee for industrial, commercial and commercial high-rise land uses; and The City Council finds it is necessary to ensure the timely payment of the "DIF program monitoring" cost item, included in Table H "Program Funding Requirements" of the financial and engineering study, "Eastern Area Development Impact Fees for Streets" dated July, 2002, to adequately fund ongoing and future administration activities and studies. SECTION 2: That the Development Impact Fee Schedule set forth in Section 3.54.010(C) of the Municipal Code, and as adjusted armually by the 20 City Construction Cost Index as published monthly in the Engineering News Record, shall be amended to read as follows: C. The amount of the fee for each development shall be calculated at the time of building permit issuance based upon the following schedule: Development Type Transportation Fee Residential (Low density) 0-8 du/gross ac Single family detached dwelling $8,180$5,920/dwelling unit (Medium density»8-20 du/gross ac Siagle family attached dwelliag$6,54i$4,738/dwelling unit (High density) >20 du/gross ac Þ,1\iltifam.ily,þ,yelliag $4,908$3,552/dwelling unit Senior housing $3,272$2,388/dwelling unit Commercial $171,780$148,000/gross ac High rise Gcommercial (high rise) $278,120$238,800/gross ac Industrial $65,440$88,800/gross acre Golf course $572,600$411, 400/golf course Medical center $531,700$384,800/gross acre -3 - 13~22 The density of the development type shall be based ou the number of dwelling units per gross acre for single-family or multi-family residential and shall be based upon the deusities ideutified on the approved tentative map or approved tentative parcel map eutitling the development unless otherwise approved in writing by the city manager's designee. The gross acreage of the dcyelopment tYl'e for commercial, high rise commercial, industrial and medical center shall include the gro~s acreage of all parcels that the city manager's designee deems necessary for the dcyelopment project. Çross acreal!e as it aDD lies to the commercial, hil!h rise commercial. industrial and medical center develolllil~nt tVDes, means all land area within the boundarv of the Darcel or Darcels of the develoDment Droiect for which buildinl! ~mits are beinl! re@ested. The amount of the fee shall be adjusted, starting on October I, 2003 WOO, and on each October 1st thereafter, based on the one-year change (from July to July) in the 20 City Construction Cost Index as published monthly in the Engineering News Record. For reference purposes, the July 2002+999, 20 City Construction Cost Index is 6604.82 607€i.25. Adjustments to the above fees based upon the Construction Cost Index shall be automatic and shall not require further action of the city council. The city council shall at least annually review the amount of the fee. The city council may adjust the amount of the fee as necessary to reflect changes in the type, size, location or cost of the transportation facilities to be financed by the fee, changes in land use designations in the city's general plan, and upon other sound engineering, financing and planning information. Adjustments to the above fees resulting from the above reviews may be made by resolution amending the master fee schedule. SECTION 3: That the Definitions as set forth in Section 3.54.020 of the Municipal Code, shall be amended to read as follows: 3.54.020 Definitions. For the purposes of this chapter, the following words or phrases shall be construed as defined herein, unless from the context it appears that a different meaning is intended. A. "Building permit" means a permit required by and issued pursuant to the Uniform Building Code. B. "Director of Public Works" means the director of public works, the director of public works' designee or the city manager's designee. C. "Density" means dwelling units per gross acre identified for each planning area shown on the approved tentative map or approved tentative parcel map or as determined by the city manager's designee. D.g., "Developer" means the owner or developer of a development. E.~ "Development permit" means any discretionary permit, entitlement or approval for a development project issued under any zoning or subdivision ordinance of the city. F.Q."Development project" or "development" means any activity described in Section 66000 of the State Government Code. -4 - /3-21 G.~ "Eastern Territories" generally means that area of the city located between Interstate 805 on the west, the city sphere of influence boundary on the east and northeast, the city boundary on the north and the city's southern boundary on the south, excepting Villages 9 and 10 of the Otay Ranch (the University Site) as shown on the map entitled "Figure I" of the update of the financial and engineering studies. The property known as Bonita Gateway located at the northeast quadrant of Bonita Road and 1-805 intersection is also included. H.F. "Financial and engineering studies" means the "Interim Eastern Area Development Impact Fee for Streets" study prepared by George T. Simpson and Willdan Associates dated November 1987; the "Eastern Area Development Fee for Streets" study prepared by Willdan Associates dated November 19, 1990; the Eastern Development Impact Fee for Streets ~ 1993 Revision" study prepared by city staff dated July 13, 1993; aM the study prepared by Project Design Consultants ("Eastern Area Development Impact Fees for Streets, 1999 Update") dated October 25 1999;, and the study prepared by Willdan ("Eastern Area Development Impact Fees for Streets" dated July 2002), which are on file in the office of the city clerk. I.Gc "High rise commercial" means commercial office usage five or more stories in height. J. "Transportation facility project" means that project or portion of project which involves the specified improvemeuts authorized by Section 3.54.030. SECTION 4: That the transportation facilities to be financed by the fee as set forth III Section 3.54.030(A) shall be amended as follows: 3.54.30 Transportation facilities to be financed by the fee. A. The transportation facilities and programs to be financed by the fee established by this chapter are: 1.* 2.* 3.** 3a.** 4** 5.** 6.** 7. 8** 9** lOa. lOb. II. 12. 13* 14.** State Route 125 from San Miguel Road to Telegraph Canyon Road. State Route 125 from Telegraph Canyon Road to Olympic Parkway Orange .^.V€flH€. Telegraph Canyon Road from Paseo Del Rey to east of Pas eo Laderalnorth side Telegraph Canyon Road at 1-805 interchange/Phase II. Telegraph Canyon Road / Phase I Rutgers Avenue to Eastlake Boundary. Telegraph Canyon Road / Phase II Paseo Ladera to Apache Drive. Telegraph Canyon Road / Phase III Apache Drive to Rutgers Avenue. East H Street / 1-805 Interchange modifications. East H Street from Eastlake Drive to SR-125. Otay Lakes Road from Camino del Cerro Grande to Ridgeback Road. La Media Road from Telegraph Canyon Road to East Palomar Street. La Media Road from East Palomar Street to Olympic Parkway. Bonita Road from Otay Lakes Road to Central A venue. Bonita Road from Central Avenue to San Miguel Road. San Miguel Road from Bonita Road to SR-125. East H Street from State Route 125 to San Miguel Road. -5 - /2r-30 15** Proctor Valley Road (East H Street) from San Miguel Road to Hunte Parkway. 16.** Olympic Parkway from Brandywine Avenue to Paseo Ranchero. 17a.** East Palomar Street from 01eander Avenue to Medical Center Drive Sunbow East@rn Boundary. 17a. ** East Palomar Street from Medical Center Drive to Paseo Ladera. 17b. East Palomar Street from Paseo Ladera to Sunbow eastern boundary to Medical C@nter Dri'.'@. 18** Telegraph Canyon Road from eastern boundary of Eastlake to Hunte Parkway. 19** Eastlake Parkway from Otay Lakes Road to Eastlake High School southern boundary. 20** Hunte Parkway from Proctor Valley Road to Telegraph Canyon Road. 21.** Hunte Parkway from Telegraph Canyon Road to Club House Drive. 2Ia.** Hunte Parkway from Club House South Gr@@ns','i@wDriveto Olympic Parkway. 22. Olympic Parkway from Eastlak@ Park>.\'ay to Hlomt@ Parkway. 22a. Olympic Parkway from SDGE easement to Huute Parkway. 22b. Olympic Parkway from SR 125 to SDGE easement. 23a. ** Paseo Ranchero from Telegraph Canyon Road to East Palomar Street. 23b. **Paseo Ranchero from East Palomar Street to Olympic Parkway. 24a. Olympic Parkway from Paseo Ranchero to La Media Road. 24b. Olympic Parkway from La Media Drive to East Palomar Street. 24c. Olympic Parkway from East Palomar Street to SR125. 24d. Olympic Parkway from SRI25 to Eastlake Parkway. 25a. Olympic Parkway / 1-805 Interchange modifications to Brandywine Avenue. 25b.** Olympic Parkway from Oleauder to Brandywine 26a. ** East Palomar Street from @ast@rn SUMOW Boundary to Paseo Ranchero to Santa Maria. 26b.** East Palomar Street from Sunbow eastern boundary to Santa Maria 27. Deleted project (East Palomar Street at 1-805 interchange). 28. Otay Lakes Road from Hunte Parkway to Wueste Road 29.** Olympic Parkway from Hunte Parkway to Wueste Road Olympic Training C@nt@L Otay Lakes Road from SR-125 to Eastlake Parkway. Eastlake Parkway from Fenton Street to Otay Lakes Road. East "H" Street from 1-805 to HiddenVista Drive. East "H" Street eastbound to Terra Nova Shopping Center. Bonita Road at Otay Lakes Road intersection. Otay Lakes Road at Elmhurst Drive intersection. East "H" Street at Otay Lakes Road intersection. Traffic Signal Interconnection / Eastern Territories. EastLake Parkway from Eastlake High School southern boundary to Olympic Parkway. East "H" Street from Paseo Del Rey to Tierra del Rey. Bonita Road from 1-805 to Plaza Bonita Road. Alta Road from SRI25 to Eastlake Parkway. Brandywine/Medical Center Drive from Medical Center Court to Olympic Parkway. 30. 31. 32a. 32b. 33** 34** 35.** 36. 37. 38** 39.** 40. 41.** -6 - /3-3/ 42. Birch Road from La Media Road to SR 125. 43. Birch Road from SRI25 to Eastlake Parkway. 44. Deleted project (Birch Road from Eastlake Parkway to Hunte Parkway). 45. Eastlake Parkway from Olympic Parkway to Birch Road. 46. Eastlake Parkway from Birch Road to Alta Road Rock Mountain Road. 47a. Mt. Miguel Road from Proctor Valley Road North to SR 125. SOHth to Proctor Valley Road North. 47b. Mt. Miguel Road from SR 125 to Proctor Valley Road (South), previously named East "H" Street. 48. Hunte Parkway from Olympic Parkway to Eastlake Parkway Birch Road. 50. Deleted project. [La Media Road bridge crossing the Otay River (one-half the cost)]. 51. La Media Road from Olympic Parkway to Birch Road. 52. La Media Road from Birch Road to Rock Mountain Road. 53. La Media Road from Rock Mountain Road to Main Street (previously named Otay Valley Road). 54. La Media Road from Main Street Ota)' Valley Road to southern city boundary. 55. Otay Lakes Road from East H Street to Telegraph Canyon Road. 56a. Main Street Otay Valley Road from Nirvana ~ to Rock Mountain Road. 56b. Main Street Otay Valley Road from Rock Mountain Road to La Media Road. 56c. Main Street Otay Valley Road from La Media Road to SR125. 56d. Main Street at 1-805 Underpass widening. 57. Paseo Ranchero from Olympic Parkway to Main Street Otay Valley Road. 58a. Paseo Ranchero from Main Street Ota)' Valley Road to southern City boundary (excludes including bridge crossing the Otay River) (one half the cost). 58b. Paseo Ranchero bridge crossing the Otay River (0% of cost). 59a. Proctor Valley Road from Hunte Parkway to Rolling Hills Ranch Neighborhood 9 west entrance eastern City boundary at Upper Ota)' Reservoir. 59b. Proctor Valley Road from Rolling Hills Ranch Neighborhood 9 west entrance to easterly city boundary. 60. Rock Mountain Road from SRI25 to Maiu Street Otay Valley Road. 61. Willow Street from Bonita Road to Sweetwater Road (including bridge over Sweetwater River). 62. East H Street from Buena Vista Way to Otay Lakes Road. 63. Intersection signalization area wide within the Eastern Territories. 64. Development impact fee program support. * Project is now included in the interim pre-SRl25 transportation facility fee. ** Project has been completed. SECTION 5: That the developer authorization for construction of transportation facilities as set forth in Section 3.54.040(B) shall be deleted: -7 - /3 -32 B. f. d@v@lop@r may r@ElH@st aHthorizatiolt from the city council to construct one or more ofth@ faciliti@s listed in CVMC 3.54.030. SECTION 6: That the developer construction of transportation facilities as set forth III Section 3.54.040(C) shall be amended as follows: B.G, Whenever a developer requests reimbursement, or a credit against fees, for work to be done or paid for by the developer under subsections (A) ØF-fß) of this section, the request shall be submitted in writing to the city manager's designee. council before commencement ofth@ work. 1. The request shall contain the follo'l.'ing information and, if granted, shall b@ SHbj@ct to the following conditions: a description of the project with a detailed cost estimate which itemizes those costs of the construction attributable to the transportation facility project and excludes any work attributable to a specific subdivision project. The estimate is preliminary and the amount of reimbursement or credit against fees is subject to final determination by the city manager's designee. Additional information shall be provided to the city by the developer upon request of the city. I. Detailed description of the project with a preliminary cost estimate. That portion of proj@ct which involves the sp@cifi@d improvements amhorized by CVMC 3.54.030 is referred to herein as the transportation facility proj ect 2. Such reimbursement or credit against fees shall be subject to the following conditions: ;ka. Requirements of Developer. La. Preparation of plans and specifications for approval by the city; ii.1r.Secure and dedicate any right-of-way required for the transportation facility project; iii.G.Secure all required permits and environmental clearances necessary for the transportation facility project; iV.d.Provision of performance bonds (where the developer intends to utilize provisions for immediate credit, the performance bond shall be 100 percent of the value of the transportation facility project); v.&Payment of all city fees and costs. b.J. The city will not be responsible for any of the costs of constructing the transportation facility project. The developer shall advance all necessary funds to construct the transportation facility proj ect. c.4. The developer shall secure at least three qualified bids for work to be done and shall award the construction contract to the lowest qualified bidder. The developer may combine the construction of the transportation facility project with other development-related work and award one construction contract for the combined work based on a clearly identified process for determining the low bidder, all as -8 - /3-33 approved by the city manager's designee director of public works. Should the construction contract be awarded to a qualified bidder who did not submit the lowest bid for the transportation facility project portion of the contract, the developer will only receive transportation development impact fee IDW credit based on the lowest bid for the transportation facility portion of the contract. Any claims for additional payment for extra work or charges shall be justified, shall be documented to the satisfaction of the city manager's designee Eiirector of public works and shall only be reimbursed at the prices for similar work included in the lowest bid for the transportation facility portion of the contract. 5.The developer shall provide a EietaileEi cost estimate which itemizes those costs of the construction attriblltable to the transportation facility project and excludes any work attributable to a specific subdivision project. The estimate is preliminary and subject to final Eietermination by the director of Pllblic works upon completion of the transportation facility project. d.é.Upon complying with couditions set forth in Section 3.54.040(B)1. and 2.a. above as determined by the city and upon approval of the estimated cost by the city manager's designee director of public works, the developer shall be entitled to immediate credit for 50 percent of the estimated cost of the construction attributable to the transportation facility project. Once the developer has received valid bids for the project which comply with Section 3.54.040(B)2.c., entered into binding contracts for the construction of the project, and met the conditions set forth in Section 3.54.040(B)1. and 2.a. above as determined by the city, all of which have been approved by the city mauager's designee Eiirector of public works, the amount of the immediate credit shall be increased to 75 percent of the bid amount attributable to the transportation facility project. The immediate credits shall be applied to the developer's obligation to pay transportation development impact fees for building permits issued after the establishment of the credit. The developer shall specify tOOw those building permits to which the credit is to be applied at the time the developer submits the building permit applications. f.:7.lf the developer uses all of the immediate credit before final completion of the transportation facility project, then the developer may defer payment of development impact fees for other building permits by providing to the city liquid security such as cash or an irrevocable letter of credit, but not bonds or set-aside letters, in an amount equal to the remaining amount of the estimated cost of the transportation facility project. gJhWhen all work has been completed to the satisfaction of the city, the developer shaH submit verification of payments made for the construction of the transportation facility project to the city. The city manager's designee Eiirector of public works shaH make the final determination on expenditures which are eligible for credit or cash reimbursement. h.9..After final determination of eligible expenditures has been made by the city manager's designee Eiirector of public works aud the developer has complied with the conditions set forth in this Section 3..54.040(B) as determined by the city, the final amount of transportation development impact fee credits shall be determined by the city manager's designee. The developer shall receive credit against the deferred fee obligation in an amount equal to the difference between the final -9 - (2 '2/..../ :J -::;J I expenditure determination and the amount of the 75 percent immediate credit used, if any. The city shall notify the developer of the final deferred fee obligation, and of the amount of the applicable credit. If the amount of the applicable credit is less than the deferred fee obligation, then the developer shall have 30 days to pay the deferred fee. If the deferred fees are not paid within the 30-day period, the city may make a demand against the liquid security and apply the proceeds to the fee obligation. i.+G. At the time building permits are issued for the developer's project, the city will incrementally apply credit which the developer has accrued in lieu of collecting the required transportation development impact fees. Th@ developer will receive any credit against required de'¡elopment impact fees incrementally at the time buikling permits are issued for the dev@lop@r's project The amount of the credit to be applied to each building permit shall be based upon the fee schedule in effect at the time of the building permit issuance. The city manager's designee dir@ctor of public works shall convert such credit to an EDU basis for residential development and/or a gross acre basis for commercial or industrial development for purposes of determining the amount of credit to be applied to each building permit. If the total eligible construction cost for the transportation facility project is more than the total transportation development impact fees which will be required for the developer's project, then the amount in excess of development impact fees will be paid in cash when funds are available as determined by the city manager,; a reimbursement agreement will be executed; or the developer may waive reimbursement and use the excess as credit against future transportation development impact fee obligations. The city may, in its discretion, enter into an agreement with the developer to convert excess credit into EDU and/or gross acre credits for use against future development impact fee obligations at the fee rate in effect on the date of the agreement. p-hThe requirements of this wbsSection 3.54.040(B){G1 may, in the city' s discretion, be modified through an agreement between entered into 'Nith the developer and the city and approved by city council. SECTION 7: That the developer construction of transportation facilities as set forth III Section 3.54.040(D) shall be amended as follows: c.Q. Whenever a transportation development impact fee credit is generated by constructing a transportation facility using assessment district or community facility district financing, the credit shall only be applied to the transportation development impact fee obligations within that district. SECTION 8: That Section 3.54.090 is added as follows: 3.54.090 Economic Incentive Credit -10 - } ::3 - ::;'5 The city council may authorize the city to participate in the financing of transportation facility projects or portions of transportation facility projects identified in Section 3.54.030. At the time of the appropriatiou of funds by city council for the construction of an eligible transportation facility, the city shall be eligible to receive a credit known hereafter as an Economic Incentive Credit. Such economic incentive credit may be applied to development impact fee obligations for those projects which the city council determines, in its sole discretion, to be beneficial to the city. The use of the economic incentive credit may be subject to conditions which shall be set forth in a written agreement between the developer of the project and the city and approved by city council. The amount of the credit shall be determined pursuant to Section 3.54.040(B). The city may receive Economic Incentive Credit only for those eligible projects (i) identified in Section 3.54.030 and (ii) for amounts of funding not identified in the financial and engineering study, "Eastern Area Developmeut Impact Fee for Streets" dated July 2002. SECTION 9: Expiration of this ordinance This ordinance shall be of no further force when the City Council determines that the amount of fees which have been collected reaches an amount equal to the cost of the transportation facilities or reimbursements. SECTION 10: Time limit for protest and judicial action Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be brought within the time period as established by Government Code Section 66020 after the effective date of this ordinance. In accordance with Government Code Section 66020(d)(l), the ninety-day approval period in which parties may protest begins upon the effective date of this ordinance. SECTION II: Effective Date This Ordinance shall become effective 60 days after its adoption. Presented by: Approved as to form by: æ (]}J1 ~ ~eny . City Attorney John P. Lippitt Director of Public Works J :/attorney/ord inance/tdi ford2002 -11- I? ::;>/ ;..; -J(¡? ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA, CALIFORNIA AMENDING CHULA VISTA MUN1CIPAL CODE CHAPTER 3.54, RELATING TO DEVELOPMENT IMPACT FEE TO PAY FOR THE TRANSPORTATION FACILITIES IN THE CITY'S EASTERN TERRITORIES WHEREAS, the City Council is placing an ordinance on its first reading which will increase the development impact fee (per equivalent dwelling) unit to finance transportation facilities within the City of Chula Vista, and WHEREAS, the average daily trips for residential development shall be based on its density, and WHEREAS, pursuant to Government Code Section 66017(a), the fees increased by that ordinance will not become effective until sixty (60) days after its second reading, and WHEREAS, developments in the City which will impact various transportation facilities will be applying for building permits during the interim period before the development impact fee increase becomes effective, and WHEREAS, Government Code Section 66017(b) authorizes the City to adopt an interim fee as an urgency measure upon making a finding describing the current and immediate threat to the public health, welfare, and safety, and WHEREAS, said interim measure will be effective for thirty (30) days and may be extended twice for additional thirty (30) day periods upon subsequent action by the City Council, and WHEREAS, the City's Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA, and WHEREAS, state law requires said urgency ordinance to be adopted by a four- fifths vote. NOW, THEREFORE, the City Council of the City of Chula Vista does ordain as follows: I 13 - 37 SECTION I: Findings The City Council finds that developers ofland within the Eastern Territory should be required to mitigate the burden created by development through the construction of transportation facilities within the boundaries of the development, the construction of those transportation facilities outside the boundaries of the development which are needed to provide service to the development in accordance with City standards and the payment of a development impact fee to finance the development's portion of costs of the transportation network; and, The City Council finds that the legislative findings and determinations set forth in Ordinance NO.2802 and No. 2823 continue to be true and correct; and The City Council finds, after consideration of the evidence presented to it including the "Eastern Area Development Impact Fees for Streets" dated July 2002, that certain amendments to Chapter 3.54 of the Chula Vista Municipal Code are necessary in order to assure that there are sufficient funds available to finance the transportation facilities necessary to serve the eastem territories by the development impact fee; and, The City Council finds, based on the evidence presented at the meeting, the City's General Plan, and the various reports and information received by the City Council in the ordinary course of its business, that the imposition of traffic impact fees on all development in the eastern territories for which building permits have not been issued is necessary in order to protect the public health, safety and welfare and in order to assure effective implementation of the City's General Plan; and, The City Council finds that the amount of the amended fees levied by this ordinance does not exceed the estimated cost of providing the transportation facilities; and, The City Council finds that it is appropriate to refine the fees for industrial and commercial land uses, including commercial high-rise, to reflect the findings of the analyses of the industrial and commercial trip origination and destination whereby only estimated trips generated from outside the Transportation Development Impact Fee boundary shall be used in determining the fee for industrial, commercial and commercial high-rise land uses; and The City Council finds it is necessary to ensure the timely payment of the "DlF program monitoring" cost item, included in Table H "Program Funding Requirements" of the financial and engineering study, "Eastern Area Development Impact Fees for Streets" dated July, 2002, to adequately fund ongoing and future administration activities and studies. 2 13 -'3<2 SECTION 2: Finding of Urgency That the City Council of the City of Chula Vista finds that it is necessary that its development impact fee for transportation facilities go into effect immediately in order that all properties in the eastern section of the City pay their fair share of the cost of public transportation improvements relating to the impacts caused by their development. Immediate implementation of this fee is necessary due to the current and immediate threat to public safety which will result should there be a shortfall in the amount of money necessary to pay for the various transportation facilities thereby resulting in severe congestion and failure of the public transportation network necessary to serve the increased population. The City Council finds that the prospect of a shortfall, failure of the street system and concems about an increased charge to remaining property owners constitutes a current, immediate threat to the public health, welfare and safety justifying the immediate imposition of this fee. SECTION 3: That the Development Impact Fee Schedule set forth in Section 3.54.010(C) of the Municipal Code, and as adjusted annually by the 20 City Construction Cost Index as published monthly in the Engineering News Record, shall be amended to read as follows: C. The amount of the fee for each development shall be calculated at the time of building permit issuance based upon the following schedule: Development Type Transportation Fee Residential (Low density) 0-8 du/gross ac Siagle family detached d'.velliag $8,180$5,920/dwelling unit (Medium density»8-20 du/gross ac Singlg family attached dwelliag$6,544$4,73á/dwelling unit (High density) >20 du/gross ac MHltifamily dwglling $4,908$3,552/dwelling unit Senior housing $3,272$2,3ág/dwelling unit Commercial $171,780$14 g,QOO/gross ac High rise Gcommercial (higH rise) $278,120$239,gOO/gross ac Industrial $65,440$gg,gOO/gross acre Golf course $572,600$414,400/golf course Medical center $531,700$384,gOO/gross acre The density of the development type shall be based on the number of dwelling units per gross acre for single-family or multi-family residential and shall be based upon the densities identified on the approved tentative map or approved tentative parcel map entitling the development unless otherwise approved in writing by the city manager's designee. The gross acreage of the development type for commercial, high rise commercial, industrial and medical center shall include the gross acreage of all parcels that the city manager's designee deems necessary for the development project. 3 /?v31 The amount of the fee shall be adjusted, starting on October I, 2003 WOO, and on each October 1 st thereafter, based on the bne-year change (from July to July) in the 20 City Construction Cost Index as published monthly in the Engineering News Record. For reference purposes, the July 2002+999, 20 City Construction Cost Index is 6604.82 6076.25. Adjustments to the above fees based upon the Construction Cost Index shall be automatic and shall not require further action of the city council. The city council shall at least annually review the amount of the fee. The city council may adjust the amount of the fee as necessary to reflect changes in the type, size, location or cost of the transportation facilities to be financed by the fee, changes in land use designations in the city's general plan, and upon other sound engineering, financing and planning information. Adjustments to the above fees resulting from the above reviews may be made by resolution amending the master fee schedule. SECTION 4: That the Definitions as set forth in Section 3.54.020 of the Municipal Code, shall be amended to read as follows: 3.54.020 Definitions. For the purposes of this chapter, the following words or phrases shall be construed as defined herein, unless from the context it appears that a different meaning is intended. A. "Building permit" means a permit required by and issued pursuant to the Uniform Building Code. B. "Director of Public Works" means the director of public works, the director of public works' designee or the city manager's designee. C. "Density" means dwelling units per gross acre identified for each planning area shown on the approved tentative map or approved tentative parcel map or as determined by the city manager's designee. D.g. "Developer" means the owner or developer of a development. KG.- "Development permit" means any discretionary permit, entitlement or approval for a development project issued under any zoning or subdivision ordinance of the city. F.Ih"Development project" or "development" means any activity described in Section 66000 of the State Government Code. G.& "Eastern Territories" generally means that area ofthe city located between Interstate 805 on the west, the city sphere of influence boundary on the east and northeast, the city boundary on the north and the city's southern boundary on the south, excepting Villages 9 and 10 of the Otay Ranch (the University Site) as shown on the map entitled "Figure I" of the update of the financial and engineering studies. The property known as Bonita Gateway located at the northeast quadrant of Bonita Road and 1-805 intersection is also included. H.F.- "Financial and engineering studies" means the "Interim Eastern Area Development Impact Fee for Streets" study prepared by George T. Simpson and Willdan Associates dated November 1987; the "Eastern Area Development Fee for Streets" study prepared by Willdan Associates dated November 19, 1990; the Eastern Development Impact Fee for Streets - 1993 Revision" study prepared by city staff dated July 13, 1993; and the 4 /3 -l/ 0 study prepared by Project Design Consultants ("Eastern Area Development Impact Fees for Streets, 1999 Update") dated October 25 1999;, and the study prepared by Willdan ("Eastern Area Development Impact Fees for Streets" dated July 2002), which are on file in the office of the city clerk. I.Çh "High rise commercial" means commercial office usage five or more stories in height. J. "Transportation facility project" means that project or portion of project which involves the specified improvements authorized by Section 3.54.030. SECTION 5: That the transportation facilities to be financed by the fee as set forth In Section 3.54.030(A) shall be amended as follows: 3.54.30 Transportation facilities to be financed by the fee. A. The transportation facilities and programs to be financed by the fee established by this chapter are: 1.* State Route 125 from San Miguel Road to Telegraph Canyon Road. 2.* State Route 125 from Telegraph Canyon Road to Olympic Parkway OraFlge :\ veIllle. 3.** Telegraph Canyon Road from Paseo Del Rey to east of Pas eo Laderalnorth side 3a.** Telegraph Canyon Road at 1-805 interchangelPhase II. 4. ** Telegraph Canyon Road / Phase I Rutgers Avenue to Eastlake Boundary. 5** Telegraph Canyon Road / Phase II Pas eo Ladera to Apache Drive. 6. ** Telegraph Canyon Road / Phase III Apache Drive to Rutgers Avenue. 7. East H Street / 1-805 Interchange modifications. 8.** East H Street from Eastlake Drive to SR-125. 9** Otay Lakes Road from Camino del Cerro Grande to Ridgeback Road. lOa. La Media Road from Telegraph Canyon Road to East Palomar Street. lOb. La Media Road from East Palomar Street to Olympic Parkway. II. Bonita Road from Otay Lakes Road to Central Avenue. 12. Bonita Road from Central Avenue to San Miguel Road. 13.* San Miguel Road from Bonita Road to SR-125. 14. ** East H Street from State Route 125 to San Miguel Road. 15.** Proctor Valley Road (East H Street) from San Miguel Road to Hunte Parkway. 16.** Olympic Parkway from Brandywine Avenue to Paseo Ranchero. 17&** East Palomar Street from Oleander Avenue to Medical Center Drive SIlIWOW Eastern BOIlIlàary. 17a. ** East Palomar Street from Medical Center Drive to Paseo Ladera. 17b. East Palomar Street from Paseo Ladera to Sunbow eastern boundary to Meàical Center Drive. 18** Telegraph Canyon Road from eastem boundary of Eastlake to Hunte Parkway. 19** Eastlake Parkway from Otay Lakes Road to Eastlake High School southem boundary. 20. ** Hunte Parkway from Proctor Valley Road to Telegraph Canyon Road. 21. ** Hunte Parkway from Telegraph Canyon Road to Club House Drive. 5 /3-'11 2Ia.** Hunte Parkway from Club House Seuth Gr€€nsvi€'N Drive to Olympic Parkway. 22. OIYm¡Jic Parh:ay frem Ea~tlak€ Park>l.'aJ' te HIlRt€ Parkway. 22a. Olympic Parkway from SDGE easement to Hunte Parkway. 22b. Olympic Parkway from SR 125 to SDGE easement. 23a.** Paseo Ranchero from Telegraph Canyon Road to East Palomar Street. 23b. **Paseo Ranchero from East Palomar Street to Olympic Parkway. 24a. Olympic Parkway from Paseo Ranchero to La Media Road. 24b. Olympic Parkway from La Media Drive to East Palomar Street. 24c. Olympic Parkway from East Palomar Street to SR125. 24d. Olympic Parkway from SRI25 to Eastlake Parkway. 25a. Olympic Parkway / 1-805 Interchange modifications to Brandywine Avenue. 25b.** Olympic Parkway from Oleander to Brandywine 26a.** East Palomar Street from €ast€m Sunoe\',' B8Imdary to Paseo Ranchero to Santa Maria. 26b. ** East Palomar Street from Sunbow eastern boundary to Santa Maria 27. Deleted project (East Palomar Street at 1-805 interchange). 28. Otay Lakes Road ÍÌ'om Hunte Parkway to Wueste Road 29.** Olympic Parkway from Hunte Parkway to Wueste Road Olympic Training C€nt€r. Otay Lakes Road from SR-125 to Eastlake Parkway. Eastlake Parkway from Fenton Street to Otay Lakes Road. East "H" Street from 1-805 to HiddenVista Drive. East "H" Street eastbound to Terra Nova Shopping Center. Bonita Road at Otay Lakes Road intersection. Otay Lakes Road at Elmhurst Drive intersection. East "H" Street at Otay Lakes Road intersection. Traffic Signal Interconnection / Eastern Territories. EastLake Parkway from Eastlake High School southern boundary to Olympic Parkway. East "H" Street from Paseo Del Rey to Tierra del Rey. Bonita Road from 1-805 to Plaza Bonita Road. Alta Road from SRI25 to Eastlake Parkway. Brandywine/Medical Center Drive from Medical Center Court to Olympic Parkway. Birch Road from La Media Road to SR 125. Birch Road from SR125 to Eastlake Parkway. Deleted project (Birch Road from Eastlake Parkway to Hunte Parkway). Eastlake Parkway from Olympic Parkway to Birch Road. Eastlake Parkway from Birch Road to Alta Road Rock MOIlRtain Read. Mt. Miguel Road from Proctor Valley Road North to SR 125. Sellth te Prøcter Vall€j' Read Nerth. 47b. Mt. Miguel Road from SR 125 to Proctor Valley Road (South), previously named East "H" Street. Hunte Parkway from Olympic Parkway to Eastlake Parkway Birsh Read. Deleted project. [La Media Road bridge crossing the Otay River (one-half the cost)]. 30. 31. 32a. 32b. 33** 34.** 35** 36. 37. 38.** 39.** 40. 41.** 42. 43. 44. 45. 46. 47a. 48. 50. 6 /3 -'-12 51. La Media Road from Olympic Parkway to Birch Road. 52. La Media Road from Birch Road to Rock Mountain Road. 53. La Media Road from Rock Mountain Road to Main Street (previously named Otay Valley Road). 54. La Media Road from Main Street Otay Vall@y Roaà to southern city boundary. 55. Otay Lakes Road from East H Street to Telegraph Canyon Road. 56a. Main Street Otay Valley Road from Nirvana ~ to Rock Mountain Road. 56b. Main Street Ota~' Vall@y Reaà from Rock Mountain Road to La Media Road. 56c. Main Street Otay Valley Road from La Media Road to SR125. 56d. Main Street at 1-805 Underpass widening. 57. Paseo Ranchero from Olympic Parkway to Main Street Otay Valley Reaà. 58a. Paseo Ranchero from Main Street Otay Valley Roaà to southern City boundary (excludes iR£I\làing bridge crossing the Otay River) (eR@ halftl1.@ £ost). 58b. Paseo Ranchero bridge crossing the Otay River (0% of cost). 59a. Proctor Valley Road from Hunte Parkway to Rolling Hills Ranch Neighborhood 9 west entrance eastern City ÐO\H1dary at Upper Otay R@s@rvoir. 59b. Proctor Valley Road from Rolling Hills Ranch Neighborhood 9 west entrance to easterly city boundary. 60. Rock Mountain Road from SRI25 to Main Street Otay Valley Roaà. 61. Willow Street from Bonita Road to Sweetwater Road (including bridge over Sweetwater River). 62. East H Street from Buena Vista Way to Otay Lakes Road. 63. Intersection signalization area wide within the Eastern Territories. 64. Development impact fee program support. * Project is now included in the interim pre-SRl25 transportation facility fee. ** Project has been completed. SECTION 6: That the developer authorization for construction of transportation facilities as set forth in Section 3.54.040(B) shall be deleted: B. 1'. à@y@lop@r may request authorizatioR from the £ity £o\lRcil to CORstru£t ORB or more ofth@ fa£iliti@s list@à iR CVMC 3.54.030. SECTION 7: That the developer construction of transportation facilities as set forth In Section 3.54.040(C) shall be amended as follows: B.G. Whenever a developer requests reimbursement, or a credit against fees, for work to be done or paid for by the developer under subsections (A) 6F-{ß) of this section, the request shall be submitted in writing to the city manager's designee. £o\lR£il Ð@for@ comm@Rc@m@Rt oftH@ work. 7 /8-L/3 1. The request shall contain t-RS folle',\'ing inIDrmatien ami, if grantsd, ~hall 9S £lIbjset te ths fellowing eenditiea£: a description of the project with a detailed cost estimate which itemizes those costs of the construction attributable to the transportation facility project and excludes any work attributable to a specific subdivision project. The estimate is preliminary and the amount of reimbursement or credit against fees is subject to final determinatiou by the city manager's designee. Additional information shall be provided to the city by the developer upon request of the city. I. Dstailsd ds~eriptien ef tHS projsct ,,-,itH a prslimiaary eo~t s~timats. THat pertion ef projsct wHicH iavelvss tHS spseifisd imprevsmsats alltherizsel by CVMC 3.51.Q]Q is rsfsrrsel to Hsrsin as ths transportatiea facility prejsct 2. Such reimbursement or credit against fees shall be subject to the following conditions: ba. Requirements of Developer. 1.& Preparation of plans and specifications for approval by the city; ii.b.Secure and dedicate any right-of-way required for the transportation facility project; m.G.-Secure all required permits and environmental clearances necessary for the transportation facility proj ect; iv.d.Provision of performance bonds (where the developer intends to utilize provisions for immediate credit, the performance bond shall be 100 percent of the value of the transportation facility project); v.s.Payment of all city fees and costs. b.J.. The city will not be responsible for any of the costs of constructing the transportation facility project. The developer shall advance all necessary funds to construct the transportation facility project. c.4-, The developer shall secure at least three qualified bids for work to be done and shall award the construction contract to the lowest qualified bidder. The developer may combine the construction of the transportation facility project with other development-related work and award one construction contract for the combined work based on a clearly identified process for determining the low bidder, all as approved by the city manager's designee dirscter ef pllblie werks. Should the construction contract be awarded to a qualified bidder who did not submit the lowest bid for the transportation facility project portion of the contract, the developer will only receive transportation development impact fee my¡ credit based on the lowest bid for the transportation facility portion of the contract. Any claims for additional payment for extra work or charges shall be justified, shall be documented to the satisfaction of the city manager's designee dimctor of publie works and shall only be reimbursed at the prices for similar work included in the lowest bid for the transportation facility portion of the contract. 5. Tas elsvslop8r sHall proviels a el8tailsel co£t sÐtimats whicH itsmizss tHOSS ce£ts of tHS constructiea attriblltaIJls to tas transpertatiea faeility projS€t aael sxcluelss any work attriblltaIJls to a sJJscific Ellbeli'-,i£ioll projsct. Ths sstimats is prslimiaary anel 8 13~Lj s\lbj@ct to fiRal d@t@rmiRatioR by th@ dir@ctor of public works \!pOR compl@tioR of tÐ@ traR&portatioR facility proj@ct. d.é-,Upon complying with conditions set forth in Section 3.54.040(B)1. and 2.a. above as determined by the city and upon approval of the estimated cost by the city manager's designee dir@ctor of 1'1\!èlic works, the developer shall be entitled to immediate credit for 50 percent of the estimated cost of the construction attributable to the transportation facility project. Once the developer has received valid bids for the project which comply with Section 3.54.040(B)2.c., entered into binding contracts for the construction of the project, and met the conditions set forth in Section 3.54.040(B)1. and 2.a. above as determined by the city, all of which have been approved by the city manager's designee dir@ctor of public works, the amount of the immediate credit shall be increased to 75 percent of the bid amount attributable to the transportation facility project. The immediate credits shall be applied to the developer's obligation to pay transportation development impact fees for building permits issued after the establishment of the credit. The developer shall specify tIw60 those building permits to which the credit is to be applied at the time the developer submits the building permit applications. f.+'-If the developer uses all of the immediate credit before final completion of the transportation facility project, then the developer may defer payment of development impact fees for other building permits by providing to the city liquid security such as cash or an irrevocable letter of credit, but not bonds or set-aside letters, in an amount equal to the remaining amount of the estimated cost of the transportation facility project. g.&. 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 transportation facility project to the city. The city manager's designee dir@ctor of lJUàlic works shall make the final determination on expenditures which are eligible for credit or cash reimbursement. h.9.After final determination of eligible expenditures has been made by the city manager's designee dir@ctor of IJ\lblic works and the developer has complied with the conditions set forth in this Section 3.54.040(B) as determined by the city, the final amount of transportation development impact fee credits shall be determined by the city manager's designee. The developer shall receive credit against the deferred fee obligation in an amount equal to the difference between the final expenditure determination and the amount of the 75 percent immediate credit used, if any. The city shall notify the developer of the final deferred fee obligation, and of the amount of the applicable credit. If the amount of the applicable credit is less than the deferred fee obligation, then the developer shall have 30 days to pay the deferred fee. If the deferred fees are not paid within the 30-day period, the city may make a demand against the liquid security and apply the proceeds to the fee obligation. i.-Uh At the time building permits are issued for the developer's project, the city will incrementally apply credit which the developer has accrued in lieu of collecting the required transportation development impact fees. TÐ@ d@\,@lop@r will r@c@iv@ any crsclit again&t rs¡¡\lired d@\'@lepm@Rt impact fe@s incmm@Fltally at tÐ@ tim@ B\lilding p@rmits arB iss\l@d for tli@ d@v@lo¡J@r's ¡Jrej@ct The amount of the credit to be applied to each building permit shall be based upon the fee schedule in effect at 9 13-'-15 the time of the building permit issuance. The city manager's designee director of )Jllblic works shall convert such credit to an EDU basis for residential development and/or a gross acre basis for commercial or industrial development for purposes of determining the amount of credit to be applied to each building permit. If the total eligible construction cost for the transportation facility project is more than the total transportation development impact fees which will be required for the developer's project, then the amount in excess of development impact fees will be paid in cash when funds are available as determined by the city manager,; a reimbursement agreement will be executed; or the developer may waive reimbursement and use the excess as credit against future transportation development impact fee obligations. The city may, in its discretion, enter into an agreement with the developer to convert excess credit into EDU and/or gross acre credits for use against future development impact fee obligations at the fee rate in effect on the date of the agreement. p-I-. The requirements of this subsSection 3.54.040(B)EGj may, in the city' s discretion, be modified through an agreement between eRtBred into with the developer and the city and approved by city council. SECTION 8: That the developer construction of transportation facilities as set forth III Section 3.54.040(D) shall be amended as follows: c.I* Whenever a transportation development impact fee credit is generated by constructing a transportation facility using assessment district or community facility district financing, the credit shall only be applied to the transportation development impact fee obligations within that district. SECTION 9: That Section 3.54.090 is added as follows: 3.54.090 Economic Incentive Credit The city council may authorize the city to participate in the financing of transportation facility projects or portions of transportation facility projects identified iu Section 3.54.030. At the time of the appropriation of funds by city council for the construction of an eligible transportation facility, the city shall be eligible to receive a credit known hereafter as an Economic Incentive Credit. Such economic incentive credit may be applied to development impact fee obligations for those projects which the city council determines, in its sole discretion, to be beneficial to the city. The use of the economic incentive credit may be subject to conditions which shall be set forth in a written agreement between the developer of the project and the city and approved by city council. The amount of the credit shall be determined pursuant to Section 3.54.040(B). 10 /3-Lfb The city may receive Economic Incentive Credit only for those eligible projects (i) identified in Section 3.54.030 and (ii) for amounts of funding not identified in the financial and engineering study, "Eastern Area Development Impact Fee for Streets" dated July 2002. SECTION 10: Expiration of this ordinance This ordinance shall be of no further force and effect 30 days after its adoption. SECTION 11: Time limit for protest and judicial action Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be brought within the time period as established by law. In accordance with Government Code Section 66020( d)(1), the ninety-day approval period in which parties may protest begins upon the effective date of this ordinance. SECTION 12: Effective Date This Ordinance shall become effective immediately upon four-fifths vote. Presented by: Approved as to form by: ~~1YVlt~~ Jo . Kaheny City Attorney John P. Lippitt Director of Public Works J :/attorney/ord/tdifurgency cls 11 J3-Lj7 RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2002-03 BUDGET BY APPROPRIATING $826,480 FROM THE AVAILABLE FUND BALANCE IN THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO REPAY SEWER LOAN AUTHORIZED BY RESOLUTION NO. 16706 WHEREAS, in 1992, during the Assessment District No. 90-02 proceedings for the Otay Valley Road project (Main Street), Council approved, by Resolution 16706, a loan from the sewer fund of $420,000 to the TDIF Fund to offset the cost of the assessments to the property owners in that area; and WHEREAS, the loan amount and the interest on the loan have been built into the TDIF programs and staff recommends that the loan be repaid this fiscal year; and WHEREAS, the estimated amount for repayment of the loan including interest is $826,480. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the Fiscal Year 2002-03 budget by appropriating $826,480 from the available fund balance in the Transportation Development Impact Fee Fund to repay sewer loan authorized by Resolution No. 16706. Presented by Approved as to form by John P. Lippitt Director of Public Works ~~ Joh . aheny City Attorney J:/attomeylreso/appropriation sewer loan 13 -'1 c¡ Page 1, Item Meeting Date 8/13/02 COUNCIL AGENDA STATEMENT ITEM TITLE: Public Hearing to take public testimony on the formation of Community Facilities District No. 2001-2 (McMillin-Otay Ranch-Village Six) and to 'consider the authorization to levy special taxes and to incur a bonded indebtedness secured by such special taxes A) Resolution of the City Council of the City of Chula Vista, California, Forming and Establishing Cormnunity Facilities District No. 2001 - 2 ( McMillin-Otay Ranch-Village Six), Authorizing Submittal of Levy of Special Taxes to the Qualified Electors thereof B) Resolution of the City Council of the City of Chula Vista, California, Declaring Necessity to incur Bonded Indebtedness for Community Facilities District No. 2001-2 (McMillin-Otay Ranch-Village Six), Submitting to the Qualified Electors a Proposition to incur a Bonded Indebtedness Secured by the Levy of a Special Tax to Finance certain types of Public Facilities and giving Notice thereon SUBMITTED BY: Director of Public Works /~ BY: City Manager(~'-¢? (4/Sths Vote: Yes No X ) REVIEWED On June 19, 2001, Council accepted the McMillin Otay Ranch, LLC application and approved the initiation of proceedings to consider the formation of Community Facilities District No. 2001-2. On July 9, 2002, Council approved the Resolution of Intention to form Community Facilities District No. 2001-2 and the Resolution of Intention to Incur a Bonded Indebtedness of CFD No. 2001-2 and set the public hearing for August 13, 2002. CFD No. 2001-2 will fund the construction of public facilities, such as roadways for the McMillin project. In addition, a portion of the proceeds may be authorized to be used for certain transportation projects, as directed by the City. Tonight's action will continue the formal proceedings leading to the establishment of Community Facilities District No. 2001-2 and the authorization, subject to the approval of the qualified electors, to levy special taxes and to issue bonds secured by the levy of such special taxes. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. RECOMMENDATION: That Council: · Open the Hearing, take public testimony, close the public hearing; · Approve the Resolution (A) Forming and Establishing Community Facilities District No. Page 2, Item ,l--~ Meeting Date 8/13/02 2001-2 ( McMillin-Otay Ranch-Village Six ), and Authorizing submittal of Levy of Special Taxes to the Qualified Electors thereof; · Approve the Resolution (B) Declaring Necessity to incur Bonded Indebtedness of Community Facilities District No. 2001-2 (McMillin-Otay Ranch-Village Six), Submitting to the Qualified Electors a Proposition to incur a Bonded Indebtedness Secured by the Levy of a Special Tax to Finance certain types of Public Facilities and giving Notice thereon. DISCUSSION: Background The public hearing is to be held for the purpose of considering the formation of Community Facilities District No. 2001-2 (McMillin-Otay Ranch-Village Six) and to consider the authorization to levy special taxes and to incur a bonded indebtedness secured by such special taxes. The Resolution of Intention to form the district was approved by City Council on July 9, 2002. Community Facilities Districts (CFD) provide the necessary funding for the acquisition of public improvements by levying an annual "special tax", which is collected from the property owners in cor~junction 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 funded by the dislzict. The ultimate security behind the bonds are the properties located within the district, not the City's General Fund or its ability to tax property within its jurisdiction. The 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) as adopted on January 13, 1998 and amended on July 28, 1998. District Boundaries Exhibit 1 presents the boundaries of the proposed District 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 Church 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 Owner Association Property or Community Purpose Facility Property parcels etc. Total exempt acreage is estimated at approximatelyl2§ acres, which includes the 53 acres owned by the Roman Catholic Diocese of San Diego. The Improvements The developer is proposing the financing of backbone streets and associated improvements (i.e., Page 3, Item ~3' Meeting Date 8/13/02 grading, sewer, streets, landscaping, and utilities) and public facilities. Following is a general description of the proposed facilities including~ but not limited to: · 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) · La Media Bridge (between Villages 6 & 2; proportionate share) · East Olympic Parkway Bridge (between SPA 1 and Village 6; proportionate share) · Common Usable Open Space located between R-1 and R-3 In addition to the above improvements, this CFD's bonding capacity may be 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 / I 805 On Ramp Improvements · Heritage Road (Olympic Parkway to Main Street) · East H Street Road Widening In addition to the above physical improvements, this CFD's bonding capacity may be used for the purchase of a proportionate share of certain tangible maintenance equipment that has a useful life of five (5) years or more necessary to provide for maintenance of storm water quality facilities within the District. Preliminary estimates show that the maximum tax revenue (using the proposed taxes) from all the taxable properties would support a total bonded indebtedness of approximately $9.2 million (assuming a 6.5% interest rate and a 30-year term on the bonds). A bond sale mnount of $9.2 million will finance approximately $7.3 million in facilities (i.e. grading, landscaping, street~, utilities, drainage, sewer, etc). The balance provided would provide for a reserve fund, capitalized interest and pay district formation and bond issuance costs. As noted above, it is currently estimated that only $9.2 million will be available for funding by this district. However, the district will be sized for $I3 million to give the City flexibility in sizing the bonds and to take advantage of lower interest rates should they occur. A final priority list and cost estimates for each of the eligible improvements for CFD No. 2001-2 financing will be brought later to Council in conjunction with the Acquisition/Financing Agreement and other bond documents. The City may, in its sole discretion, elect to authorize and make the proceeds of any series of bonds Page 4, Item .':': Meeting Date 8/13/02 issued for the District available to pay the cost of construction or the purchase price for the acquisition of Improvements for Interim Transportation Facilities. This could result in the revision of the facilities priority structure for the utilization of such proceeds. Ultimately, as subdivision exactions, the developer will finance required improvements that this CFD district cannot finance. In addition, the proposed CFD lies within the City of Chula Vista's Transportation Development Impact Fee (TDIF) benefit area that places a cap on the CFD's ability to finance certain TDlF improvements. Staff and the consultant team are working with the developer to maximize the TDIF facilities to be constructed by the District The actual amount to be financed by CFD No. 2001-2 would depend upon a number of factors including final interest rate on the bonds and the value to lien ratio. The bond sale amount and may be higher or less than the $9.2 million mentioned above. Special Tax Report A copy of the Special Tax Report ("Community Facilities District Report Mello-Roos Community Facilities Act of 1982 Community Facilities District No. 2001-2 for McMillin -Otay Ranch-Village Six) prepared by the Special Tax Consultant, McGill Martin Self, Inc., is included as Exhibit 2, and is on file, and available for public review in the City Clerk's Office. Said report incorporates the "Rate and Method of Apportionment" (RMA) (previously approved by Council on July 9, 2002), that establishes the procedures for levying the special taxes in CFD No. 2001-2. The district is divided into the following three Land Use Class classifications: Land Use Classes: 1 ) Applies only to Developed Residential Property; 2) Applies only to Developed Non-Residential Property; and 3) Applies only to Undeveloped Property The proposed Tax Rates are as follows: · Residential Developed Parcels (single and multi fmnily residences) are taxed on the square footage of the building. The proposed residential tax rates are as follows: Residential Developed Parcels Maximum Annual Special Tax Land Use Class 1 $440.00 per Unit plus $.34 per square foot of Residential Floor Area At the time the tax is levied, 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 CFD No. 2001-2 on residential parcels. It Page 5, Item ' Meeting Date 8/13/02 should be noted that a final test will 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 · Non-Residential Developed Parcels are taxed based on the acreage of the parcel. The proposed non-residential tax rates are as follows: Commercial Developed Parcels Maximum Annual Special Tax Land Use Class 2 $11,365 per acre of Non-Residential Property At the time the tax is levied, developed parcels are those parcels for which a building permit has been issued. · The Undeveloped Land category includes all the parcels for which a building permit has not been issued. The tax on Undeveloped Land is based on the total acreage of the parcel (Refer to table below). During buildout, the collection from developed properties is not enough to cover the annual debt service and the undeveloped land taxes will cover the shortfall. The City Administrator will determine whether an undeveloped land tax is needed to meet the annual debt service. Even if no development occurs and the whole property remains undeveloped, the proposed tax will generate enough tax to cover the debt service on the bonds. The Undeveloped Property rates are similar to the rates approved for other CFDs formed within Otay Ranch's Villages. This is based upon the land use mixes, facilities needs, exempted acreage, and square footage cost. The developer considers these tax rates to be reasonably supported by the proposed land use categories for McMillin Otay Ranch Village Six. Undeveloped Property Maximum Annual Special Tax Land Class 3 $11,365 per acre of Undeveloped Property 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 1 st 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 ali 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 Page 6, Item ~ ( Meeting Date 8/13/02 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 ora 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 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 = $I 1~365 x A L A = the acreage classified as Residential Property within the Final Subdivision Map L = the number of lots classified as Residential within the Final Subdivision 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, Page 7, Item Meeting Date 8/13/02 · 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 Council Policy establishes that the maximum annual CFD 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 and assessments is limited to 2% of the sale price of the house. A preliminary calculation of the maximum tax, using estimated house prices, has been completed and all homes fall within the 2% limit. A final test will be performed at escrow closing using the actual sale price of the house. Council 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 County 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 City's criteria, since the 2% limit is a City policy the limit is not being included in the rate and method of the district. There is the potential of exceeding the 2% tax ceiling if housing prices fall after the initial sale. Resolutions There are two resolutions on today's agenda that, if adopted, will accomplish the following: RESOLUTION FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2001-2 is the formal action forming and establishing Community Facilities District No. 2001-2 (McMillin-Otay Ranch-Village Six), designating improvement areas, and authorizing submittal of lex,3' of special taxes to the qualified electors, and performs the following: · Sets the name of the District; · Identifies the Special Tax Report prepared by McGill Martin Self, Inc. as the report to be used for all future proceedings; · Establishes a Special Tax by a continuing lien to secure the bonds issued for each Improvement Area. The Special Tax is set forth in the Rate and Method of Apportionment, which will be approved by the adoption of this Resolution; · Implements the provisions of the Local Agency Special Tax and Bond Accountability Act which became effective on January 1,2001 by specifying that: · Each special tax shall be levied for the specific purposes set forth in the Resolution. · The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in the Resolution. /V -7 Page 8, Item / ~ Meeting Date 8/13/02 · The District shall establish a separate account into which the proceeds of each such special tax shall be deposited. · The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. · Submits the levy of the special tax to the property owners; and · Describes the type of facilities to be financed by the district. RESOLUTION DECLARING NECESSITY TO INCUR BONDED INDEBTEDNESS is a formal action submitting to the Qualified Electors for each Improvement Area of Community Facilities District No. 2001- 2 (McMitlin-Otay Ranch-Village Six), a Proposition to incur a Bonded Indebtedness Secured by the Levy ora Special Tax to Finance certain types of Public Facilities and performs the following: · Declares that a bond issuance is necessary; · Describes the type of facilities to be financed collectively within the district; · Limits the bond term to 30 years for each bond issue; · Further implements the provisions of the Local Agency Special Tax and Bond Accountability Act by specifying that: · Such bonded indebtedness shall be incurred for the applicable specific single purpose set forth in the Resolution. · The proceeds of any such bonded indebtedness shall be applied only the applicable specific purpose identified in the Resolution. · The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account into which the proceeds of such indebtedness shall be deposited. · The City Manager or his or her designee, acting for and on behalf of the District, shall armually file a report with this City Council as required by Government Code Section 53411. · Submits two ballot propositions to the property owners (a) incur a bonded indebtedness not to exceed $13 million to pay for authorized facilities pursuant to the special tax formula and to levy a special tax, and (b) to establish an appropriations limit for the district; and · Establishes an election procedure. Notice All property owners within the district have been notified of the public hearing through the mail as well as a published notice in the San Diego Daily Transcript or any other adjudicated newspaper in general circulation. Future Actions Adoptions of tonight's Resolutions will Form and Establish CFD No. 2001-2, to direct staff to Page 9, Item ~ Meeting Date 8/13/02 prepare the necessary ballot documents, and to a hold special election on August 20, 2002. On August 27, 2002 the City Council will hear and certify the election results and assuming the ballot measures are passed by the requisite vote of the qualified electors, have the first reading of the Ordinances to levy Special Taxes. The Acquisition/Finance Agreement is also scheduled to be brought before the City Council on August 27. FISCAL IMPACT: There will be no direct fiscal impact to the City. The developer will pay all formation 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 stafftime involved in district formation and administration activities. Staff anticipates that most of the CFD No. 2001-2 administration will be contracted out. The CFD administration cost is estimated at $75,000 annually. 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 authorization. Said requirement will be memorialized in the Acquisition/Financing Agreement that will be brought to Council at a later date. Based on a series of bond sales, in a total aggregate amount of $13 million said monetary compensation would be $130,000. Said amount shall be paid prior to bond sale (scheduled for late 2002) and will be deposited into the General Fund. The CFD Policy also stipulates that said compensation is not eligible for financing by CFD No. 2001-2. Attachments: Exhibit 1: Recorded Boundary Map for CFD No. 2001-2 Exhibit 2: Special Tax Report: "Community Facilities District No. 2001-2 McMillin Otay Ranch Village Six". J :\Engineer\Agenda\CAS 8-t3-02.doc COMMUNITY FACILITIES DISTRICT MELLO-ROOS COMMUNITY FACILITIES ACT 1982 SPECIAL TAX REPORT COMMUNITY FACILITIES DISTRICT NO. 2001-2 MCMILLIN OTAY RANCH VILLAGE SIX For the City of Chula Vista 276 Fourth Street Chula Vista, California 91910 CI'IY OF CHUtA VISYA Prepared by McGill Martin Self, Inc. 344 F Street Suite 100 Chula Vista, California 91910 July 22, 2002 TABLE OF CONTENTS Page I. INTRODUCTION ................................................................................................................ I 11. PROJECT DESCRIPTION ................................................................................................... 11I. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES .................................. 2 A. Description of Proposed Public Improvements ................................................ 2 B. Estimated Cost of Proposed Public Improvements ........................................... 3 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES ................................................... 4 A. Projected Bond Sales ........................................................................................ 4 B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness ...................................................................................................... 4 C. Incidental Expenses to be Included in the Annual Levy of Special Taxes ....... 4 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX .................................. 4 A. Explanation for Special Tax Apportionment .................................................... 5 B. Maximum Annual Special Tax Rates ............................................................... 6 C. Backup Special Tax .......................................................................................... 6 D. Accuracy of Information ................................................................................... 6 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT ................................................... 7 VII. GENERAL TERMS AND CONDITIONS .............................................................................. 7 A. Substitution Facilities ........................................................................................ 7 B. Interim Transportation Facilities ....................................................................... 7 C. Appeals ............................................................................................................. 7 EXHIBITS Exhibit A Recorded Boundary Map Exhibit B Rate and Method of Apportionment Exhibit C Assigned Maximum Special Tax Rates I. INTRODUCTION WHEREAS, the City of Chula Vista did, pursuant to the provision 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 (hereinafter referred to as the "Act"), and specifically Section 53321.5 thereof, expressly order the filing of a written "Report" with the legislative body of the proposed Community Facilities District. This Community Facilities District being Community Facilities District No. 2001-2 (McMilIin Otay Ranch Village Six) shall hereinafter be referred to as: "CFD No. 2001-2"; and WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed Community Facilities District No. 2001-2 (McMillin Otay Ranch Village Six) did direct that said Report generally contain the following: FACILITIES: A full and complete description of the public facilities the acquisition of which are proposed to be financed through the CFD. COST ESTIMATE: A general cost estimate setting forth costs of acquiring such facilities. SPECIAL TAX: Further particulars and documentation regarding the rate and method of apportiomnent for the authorized special tax. NOW, THEREFORE, I, John Lippitt P.E., the Director of Public Works of the City of Chula Vista, and the appointed responsible officer directed to prepare this Special Tax Report or cause the Report to be prepared pursuant to the provisions of the Act, do hereby submit this Report. I]. PROJECT DESCRIPTION CFD No. 2001-2 encompasses approximately 208 gross acres of land located in the portion of the south San Diego City of Chula Vista known as "Otay Ranch Village Six". Refer to Exhibit A - for a reduced copy of the Recorded Boundary Map. Of this 208 gross acreage, approximately 84 acres are expected to be developed by several merchant builders for residential use. Exhibit ! presents the boundaries of the proposed District 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 approximately 125 acres, which includes the 53 acres owned by the Roman Catholic Diocese of San Diego. Comrnuniiy Facilities District No. 200J-2 Page ] Mc:~Ellin Otay Ranch l'illage Six duly 2002 Special taxes for CFD No. 2001-2 (McMillin Otay Ranch Village 6) shall be levied to Taxable Property to satisfy the Special Tax Requirement as folIows: · First, to Developed Property up to the Maximum Annual Special Tax; · Second, if necessary, to Undeveloped Property up to the Maximum Annual Special Tax for Undeveloped Property; · Third, if necessary, Maximum Annual Special Tax derived by the application of the Backup Special Tax increased proportionately fi'om the Assigned Special Tax up to the Maximum Annual Special Tax and · Fourth, if necessary, Special Tax increased proportionately, to Undeveloped Property pursuant to Section E of Exhibit B up to the Maximum Annual Special Tax for Undeveloped Property. III. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES A. Description of Proposed Public Improvements A community facilities district may provide for the purchase, construction, expansion, or rehabilitation of any real or tangible property, including public facilities and infrastructure improvements with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development or rehabilitation occurring within the community facilities district. In addition, a community facilities district may pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the community facilities district. The facilities described in this Report are all facilities which the legislative body creating CFD No. 2001-2 is authorized to own, construct, or finance, and which are required, in part, to adequately meet the needs of CFD No. 2001-2. In addition, the facilities meet the criteria for authorized public facilities set forth in the City's Statement of Goals and Policies regarding the establishment of Community Facilities Districts. The actual Special Tax Levy will be apportioned as described in the Rate and Method of Apportioranent (RMA) of the Special Tax for CFD No. 2001-2 (Exhibit B). Facilities described herein are those currently expected to be required to adequately meet, in part, the needs of CFD No. 2001-2. Because the actual needs of CFD No. 2001-2 arising as development progresses therein may differ from those currently prioritized, CFD No. 2001-2 reserves the right to modify the actual priority list of facilities proposed herein to the extent CFD No. 2001-2 deems necessary, in its sole discretion to meet those needs. The Special Taxes required to pay for the construction or financing of said facilities will Proceeds of the proposed bonded indebtedness of CFD No. 2001-2 will be used to finance backbone streets and associated improvements (i.e., grading, sewer, streets, lm~dscaping, utilities, etc.), public facilities and interim transportation facilities. Following is a general description of the proposed facilities: Commlmity Facilities District No. 2001-2 Page 2 McMillin Otay Ranch }'lllage SLx July 2002 · 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 O£fsite (Santa Venetia to Birch Parkway) · Birch Parkway Onsite (Magdalena to SR-125) · Birch Parkway Offslte (La Media Road to Magdalena) · La Media Bridge (between Villages 6 & 2; proportionate share) · East Olympic Parkway Bridge (between SPA 1 and Village 6; proportionate share) · Neighborhood Park (Common Usable Open Space) located between R-1 and R-3 In addition to the above improvements, this CFD's bonding capacity may be 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 / I 805 On Ramp Improvements · Heritage Road (Olympic Parkway to Main Street) · East H Street Road Widening In addition to the above physical improvements, this CFD's bonding capacity may be used for the purchase of a proportionate share of certain tangible maintenance equipment that has a useful life of five (5) years or more necessary to provide for maintenance of storm water quality facilities within the District. B. Estimated Cost of Proposed Public Improvements The facilities and the estimated costs herein are subject to review and confirmation. The costs listed in Table 1, are estimates only, based upon current construction and land costs and actual costs may differ from those estimates herein. Based on the current CFD No. 2001-2 facilities cost estimates is approximately $12.8 million, of which CFD No. 2001- 2 anticipates approximately $7.3 million will be set aside for reimbursement of eligible costs to be financed with CFD bond proceeds, the balance will be born by the developers. TABLE 1 Facilities Improvements Estimated Cost · La Media Rd South $1,853,654 · Olympic Parkway $2,560,634 · La Media Onsite $971,300 · Santa Venetia Street $866,456 · Magdalena Street Phases 1-3 $1,252,404 · La Media Rd Offsite $869,578 Community Facilities District No. 2001-2 Page 3 McMillin Otay Ranch IZillage Six July 2002 · Birch Parkway Onsite $1,874.988 · Birch Parkway Offsite $1,086,731 · Traffic Enhancement $1,500,500 Total $12,836,245.00 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES A. Project Bond Sale The bond amount for CFD No. 2001-2 is anticipated to be $9.2 million, which will finance approximately $7.3 million in facilities. The bonds issued by CFD No. 2001-2 will meet the terms and conditions of special tax bonds set forth in the City's Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts. B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness Pursuant to Section 53345.3 of the Act, bonded indebtedness may include ali costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the costs of legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district due and payable prior to the expiration of one year from the date of completion of the facilities, not to exceed two years; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. The reserve fund is estimated to be the maximum allowable under Federal Tax Law. All other incidental bond issumace expenses are estimated at 4 percent of the face amount of the bonds. C. Incidental Expenses to be Included in the Annual Levv of Special Taxes Pursuant to Section 53340 of the Act, the proceeds of any special tax may only be used to : pay, in whole or part, the cost of providing public facilities, services and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the cost of planning and designing public facilities to be financed, including the cost of environmental evaluations of those facilities; the costs associated with the creation of the district, issuance of bonds, determination of the amount of taxes, collection of taxes, payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district; any other expenses incidental to the construction, completion, and inspection of the authorized work; and the retirement of existing bonded indebtedness. While the actual cost of administering CFD No. 2001-2 may vary, it is anticipated that the amount of special taxes, which can be collected, will be sufficient to fund at least $75,000 in annual administrative expenses prior to build-out of the project. V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX Community Facilities District No. 200]-2 Page 4 McMtllin Otay Ranch Village Six July 2002 / ¥ All of the property located within CFD No. 2001-2, unless exempted by law, shall be taxed for the purpose of providing necessary facilities to serve CFD No. 2001-2. Pursuant to Section 53325.3 of the Act, the tax imposed "is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The Special Tax "may be based on benefit received by parcels of real property, the cost of making facilities or authorized services available to each parcel or other reasonable basis as determined by the legislative body," although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. As shown in Exhibit B the Rate and Method of Apportionment provides information sufficient to allow each property owner within CFD No. 2001-2 to estimate the maximum annual Special Tax be or she will be required to pay. Sections A through C, below, provide additional information on the Rate and Method of Apportionment of the Special Tax for CFD No. 2001-2. A. Explanation for Special Tax Apportionment When a community facilities district is formed, a Special Tax may be levied on each parcel of taxable property within the CFD to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by CFD No. 2001-2. This Special Tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis. When more than one type of land use is present within a community facilities district, several criteria may be considered when apportioning the Special Tax. Generally, criteria based on building square footage, acreage, and land uses are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the developer's projected product mix, and are reflective of the proposed land use types within that community facilities district. Specific Special Tax levels are assigned to each land use class, with all parcels within a land use class assigned the same Special Tax rate. The Act does not require the Special Taxes to be apportioned to individual parcels based on benefit received. However, in order to insure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 2001-2. The major assumption inherent in the Special Taxes rates set forth in the Rate and Method of Apportionment is that the level of benefit received from the proposed public improvements is a function of land use. This assumption is borne out through an examination of commonly accepted statistical measures. For example, in measuring average weekday vehicle trip-ends, the Institute of Transportation Engineer's 1995 Trip Generation report identifies land use as the primary determinant of trip-end magnitude. Commercial land uses typically generate more trip- ends than do single family residential land use. Similarly, larger single family detached dwellings typically generate a greater number of trip-ends than do smaller single family detached homes, and therefore, will tend to receive more benefit from road grading, road landscaping and road improvements. Communiiy Facilities District No. 2001-2 Page 5 McMillin Otay Ranch Yillage Six July 2002 lC/-f 7 Drainage and flood control requirements generally vary with the amount of impervious ground cover per parcel. It follows that larger homes which have more impervious ground cover will create relatively more drainage flow than smaller homes. Special taxes for CFD No. 2001-2 (McMillin Otay Ranch Village Six) shall be levied to Taxable Property to satisfy the Special Tax Requirement as outlined in the CFD No. 2001-2 RMA. The Land Use Class Categories of Taxation have been established for CFD No. 200I-2. The categories are defined as follows: >- Residential Developed Parcels (single and multi-family residences) are taxed on the square footage of the building; > Non-Residential Developed Parcels are taxed based on acreage of the parcel; ¢- Undeveloped Parcels are taxed based on acreage of the parcel; and Based on the types of public facilities that are proposed for CFD No. 2001-2 and the factors described above, the Special Taxes assigned to specific land uses are generally proportionate to the relative benefits received by them. and, accordingly, the Special Taxes in CFD No. 2001-2 can be considered fair and reasonable. B. Maximum Annual Special Tax Rates Exhibit C lists the Maximum Annual Special Tax rates that may be levied against Developed Property, and Undeveloped Property within CFD No. 2001-2. Exhibit C also lists the Backup Special Tax. The City Council will armually determine the actual amount of the Special Tax levy based on the method described in RMA Exhibit B and subject to the maximum Special Tax rates contained in Exhibit C. The City will levy a Special Tax to the extent necessar,v, sufficient to meet the Special Tax Requirement. C. Backup Special Tax When a Final Subdivision Map is recorded, the Backup Special Tax for Assessors Parcels of Developed Property classified as Residential Property or Undeveloped Property will be determined pursuant to section C. 1.b of Exhibit B. D. Accuracy of Information In order to establish the Maximum Annual Special Tax rates and the Backup Special Tax as set forth in the Rate and Method of Apportionment for CFD No. 2001-2, McGiI1 Martin Self, Inc. has relied on information including, but not limited to absorption, land- use types, building square footage, and net taxable acreage which were provided to McGill Martin Self, Inc. by others. McGill Martin Self, Inc. has not independently verified such data and disclaims responsibility for the impact of inaccurate data provided by others, if any, on the Rate and Method of Apportionment for CFD No. 2001-2, including the inability to meet the financial obligations of CFD No. 2001-2. Community Facilities District ,~'o. 2001 2 Page 6 McMillin Otay Ranch ~'illage Six July 2002 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of CFD No. 2001-2 include ail land on which the Special 'Faxes may be levied. The Recorded Map of the area included within CFD No. 2001-2 is provided as Exhibit A. VII. GENERAL TERMS AND CONDITIONS A. Substitution Facilities The description of the public facilities, as set forth herein, are general in their nature. The final nature and location of improvements and facilities will be determined upon the preparation of final plans and specifications. The final plans may show substitutes, in lieu or modifications to the proposed work in order to accomplish the work of improvement, and any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a service and are of a type substantially similar to that as set forth in this Report. B. lnterim Transportation Facilities The City may, in its sole discretion, elect to authorize and make the proceeds of any subsequent series of bonds available to pay the cost of construction or the purchase price for the acquisition of Improvements for Interim Transportation Facilities. This could result in the revision of the facilities priority structure for the utilization of such proceeds. C. Appeals Any landowner who feels that the amount of the Special Tax is in error may file a notice with the City Administrator, appealing the levy of the Special Tax pursuant to the procedure specified in Exhibit B. As appropriate the City Administrator will then review the appeal and, if necessary, meet with the applicant. If the findings of the representative verify that the amount of the Special Tax should be modified or changed, then, as appropriate, the Special Tax levy shall be corrected. Community Facilities District No. 2001-2 Page 7 McMillin Otay Ranch lQ'llage Six Jul), 2002 Iv-iq EXHIBIT A CITY OF CHULA V1STA COMMUNITY FACILITIES D1STRICT NO. 2001-2 (McMillin Otay Ranch Village Six) RECORDED BOUNDARY MAP EXHIBIT B CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN OTAY RANCH VILLAGE SIX) RATE AND METHOD OF APPORTIONMENT 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 2002-2003 in an amount determined by the City Council through the application of the appropriate SpeciaI 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 maturer herein provided. A. DEFINITIONS The temps 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. 200I-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. C/0' of Chula Vista June 24, 2002 Communi~ Facih'ties District No. 2001-2 Page 1 McMilh'n Ora)' Ra,~ch t~illage Six t C~ -- 2~_~~ "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Asscssor'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 lst 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 ail 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. CiO' of Chula Vista dune 24, 2002 Community Facilities District No. 2001-2 / ,J~_ '~ l l Page 2 McMillin Otay Ranch Village Six "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 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 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 Cio, of Chula Vista dune 24, 2002 Community Facilities District No. 2001-2 ti Page 3 McMillin Otay Ranch Village Six cTt 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 all 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 California. "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, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. Ci0, of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 4 McMillin Otay Ranch Village Six / B. ASSIGNMENT TO LAND USE CATEGORIES 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 (1) 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: Ci0' of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 5 McMillin Otay Ranch Village Six / $11,365 x A L The terms above have the following meanings: 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 new or amended Final Subdivision Map (by an applicable final map, parcel map, condominium plan, record of survey, or other recorded document creating the parcels) 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 2002-2003 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 Cio' ~f Chula Vista dune 24, 2002 Community Facilities District No. 2001-2 I, ~fl t l ~?~7 Page6 McMillin Otay Ranch Village Six 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. 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 ResidentiaI 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 subdivisions therein 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 Ist 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. CiO; of Chula l/ista June 24, 2002 Comrnunity Facilities District No. 2001-2 i ~ !--~ ... Page 7 McMillin Otay Ranch I/illage Six / 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 Community 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 lhan the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 75.48 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 sum 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 ali 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.I, 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 Apportioarnent 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. Ci0, of Chula Vista June 24, 2002 Community Facilities District No. 200l-2 Page 8 McMillin Otay Ranch ~illage Six / ¢ -.~0 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 in 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. 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 CiO' of Chula Vista June 24. 2002 Com~nunity Facilities District No. 2001-2 Page 9 McMillin Otay Ranch Village Six t ~t ~/ less Capitalized Interest Crcdit Total: equals Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Paragraph No.: 1. For Assessor's Parcels of Developed Property, 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 sum 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"). CiO' of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 10 McMillinOtayRanchVillageSix /¢-~2 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"). 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 Outstanding 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 City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page I1 McMillin Otay Ranch Village Six / L~ -23 CFD No. 2001-2 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 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.I, minus Administrative Expenses and Fees pursuant to Step 10. F = the percent 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 pementage 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 (I.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. C/O' o.[ Chula I~ista June 24, 2002 Community Facilities District No. 2001-2 Page 12 MeMillin Otay Ranch ~/illage Six / ~?~¢ 1. 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. J: Engineer',AGENDAkAttachments\V6-RMA 7-09-02 clean final, 8q3-02.doc CiO' oj Chula Vista June 24, 2002 CommuniO, Facilities District No. 2001-2 Page 13 McMillin Otay Ranch Village Six [ q ~ EXHIBIT C CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-2 (McMillin Otay Ranch Village Six) MAXIMUM SPECIAL TAX RATES FOR DEVELOPED PROPERTY AND UNDEVELOPED PROPERTY Maximum Annual Special Tax for Developed Property in Land Use Class 1 Community Facilities District No. 2001-2 Residential Developed Parcels Maximum Annual Special Tax $440.00 per unit plus $.34 per square foot of Land Use Class I Residential Floor Area Maximum Annual Special Tax for Developed Property in Land Use Class 2 Community Facilities District No. 2001-2 Non Residential Developed Parcels Maximum Annual Special Tax Land Use Class 2 $11,365 per acre of Commercial Property Maximum Annual Special Tax for Undeveloped Property in Land Use Class 3 Community Facilities District No. 2001-2 Undeveloped Property Maximum Annual Special Tax Land Use Class 3 $11,365 per acre of Undeveloped Property RESOLUTION NO. RESOLUTION FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 2001-2 0VlCMILLIN - OTAY RANCH - VILLAGE SIX) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN SUCH COMMUNITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOF WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has previously declared its intention to form a community facilities district therein and ordered the preparation of a Community Facilities District Report relating to the initiation of proceedings to create such 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") m~d 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 - PORTIONS OF VILLAGE SIX) (the "District"); and, WHEREAS, notice of a public hearing relating to the establishment of the District, the extent oFthe District, thc financing ofcertahn t~, laCS of public 7:,cililics amd all ofl~cr related ma~ttcr~ ]-'.~t.; lwci: gixen, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish such District; and, WHEREAS, all communications relating to the establisl~ment of the District, fine financing of certain types of public facilities and the proposed rate and method of apportionment of special tax have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings; and, WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territou of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within the District shall be submitted to the landowners of property within the District, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. SECTION 2. DETERMINATIONS. It is hereby determined by this City Council that: A. All prior proceedings pertaining to the formation of the District were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majorityprotest as defined by the applicable provisions of the Community Facilities District Law and, therefore, the special tax proposed to be levied within the District has not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. The District as proposed conforn~s with the City of Chula Vista Statement of Goals and Policies Regarding thc Establishment of Connnnnity Facilities Districts (thc "Goals and Policies"). D. Less than twelve (12) registered voters have resided within the proposed territory of the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of the District shall be the landowners of property within the District as such term is defined in Govmzm~ent Code Section 53317(f) and each such landowner who is the owner of record as of the close of the public hearing, or the authorized reprcscntative thereof, shall have one vote for each acre or portion of an acre of land that she or he oxw~s within the District. 15. 'Fl~e time limit spcci fled by thc CoInnqtlnit? Fzicilitics District I.:txx !'o~ condctcting :tn election to submit the lex,}, ofltne special taxes to the qualified electors oF~hc District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the District. F. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution forming and establishing the District. SECTION 3. COMMUNITY FACILITIES DISTRICT REPORT. The Community Facilities District Report for the District (the "Report"), as now submitted by McGill Martin Self, Inc., Special Tax Consultant, shall stand as the report as required pursuant to Government Code Section 53321.5 for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. NAME OF DISTRICT. The City Council does hereby establish and declare the formation of the District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 2001-2 (McMillin - Otay Ranch - Village Six)." SECTION 5. BOUNDARIES OF DISTRICT. The boundaries of the District are generally described as follows: 2 All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX), as shown on a boundary map as previously approved by this legislative body, such map designated by the name of this District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego, at Page 31 of Book 36 of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6. DESCRIPTION OF TYPES OF FACILITIES AUTHORIZED TO BE FINANCED. A general description of the types of public facilities which this legislative body is authorized by law to construct, oxvn or operation, which are the types of facilities proposed to be financed under these proceedings, arc generally dcscribed in Exhibit A attached hereto and iocorporatcd herein by 115s refcrcncc. The types of facilities as above-described are facilities which the City Council is authorized by law to contribute revenue to or to construct, own or operate. It is hereby further determined that the proposed types of facilities are necessary to meet increased demands placed upon the City as a result of development occurring within the District, and the costs and expenses charged to this District represent the fair share costs of the facilities attributable to this District. For a full and complete description of such types of facilities, reference is made to the Report, a cop>, of which is on file in the Office of the City Clerk In addition to financing the above described r}pc5 of £acilhics, the financing ol' [hobo incidental expenses described in tile kcpul't atrc al~u app:o,.'cd and autl*oi-izcd. SECTION 7. SPECIAL TAX. Except where funds are otherwise available a special tax, secured by recordation of a continuing lien against all non-exempt real property ~vithin the District, is hereby authorized, subject to voter approval, 1o be levied withha the boundaries of' the District. For particulars as to the rate and method of appo~tio~zment of the special tax proposed to be levied within the District, reference is made to the attached and incorporated Exhibit "B" (the "Special Tax Formula"), which sets forth in sufficient detail the method of apportionment of the special tax to allow each landowner or resident to estimate the maximum amount that such person will have to pay. Such special tax shall be utilized to pay directly for the previously described types of facilities, to pay debt service on bonds issued by the District to assist in financing such types of facilities, to replenish any reserve fund established for such bonds, and to pay the costs of administering the bonds and the District. The special taxes herein authorized, to the extent possible, shall be collected in the same 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; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. 3 Under no circumstances will the special tax to be 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 by more than 10 percent. This legislative body further authorizes that special taxes may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Special Tax Formulas. Upon recordation cfa Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California against the property within the District, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue in force and cffcct until the special tax obligation is prepaid and permanently salisfied and lhe lien c,q,qccqcd ill accordance with law or until colleclion of thc tax b thc legislative body ceases. SECTION 8. SPECIAL TAX ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes described in Section 7 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 7. above. B. The proceeds ofllne levv of each cuch special la'< shall be applied onlv Co the applicable pc~poscs scl lbi tI~ il~ $cctioii 7. abex c. C. The District shall establish a separate account into which the proceeds of each such special tax shall be deposited. D. Thc City ManaSer or ]lis or her designee, acting £or and on behalf' of't!a¢ District, annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 9. PREPARATION OF ANNUAL TAX ROLL. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Engineering Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 4 SECTION 1 0. SUBSTITUTION FAC[LIT[ES. The description of the types of public facilities, as set forth above, is general in its nature. The final nature and location of such facilities will be determined upon the preparation of final plans and specifications therefor. Such final plans may show substitutes in lieu of, or modification to, the above described types of facilities and any such substitution shall not be a change or modification in the proceedings as long as the facilities provide a sm-vice substantially similar to that as set forth in this Resolution. SECTION 11. ELECTION. This City Council herewith submits the levy of the special tax within the District to the qualified electors of the Distr/ct, such electors being the landowners of property within the District, with each landowner having one (1) voter for each acre or portion thereof of land which he or she owns within the District. PREP.\RED BY: APPROVED AS TO FORM John P. Lippitt John Kaheny 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 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. A-1 Exhibit A Proposed List of Facilities City of Chula Vista Community Facilities District No. 2001-2 (McMillin Otay Ranch Village Six) · Olympic Parkway · La Media Road South (E. Palomar Street to Olympic Parkway) · La Media Onsite - (Olympic Parkway to Santa Venetia) · Santa Venetia Strect · Magdalena Street Phases I-3 · La Media Road Offsite (Santa Venetia to Birch Parkway) · Birch Parkway Onsilc (Magdr~lcna lo SR-125) · Birct~ Parkway Offsi!c ('fa Media Road lo M'agdalcna) · La Media Bridge (bctxx cch Villa3es ~> & 2) · East Olympic Parkway Bridge (between SPA 1 and Village 6) · Ncighborhood Park (Colnlnon Usable Open Space) located betwccn R-I and R-3 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 ofi-805 · Telegraph Canyon Road / I 805 On Ramp Improvements · Heritage Road (Olympic Parkway to Main Street) · East H Street Road Widening EXHIBIT B ATTACH A COPY OF THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX 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 2002-2003 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 12~' . t j.~..~ Page 1 McMillin Otay Ranch Village Six ~! '~ "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.I.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 III 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 Community Facilities District No. 2001-2 McMillin Otay Ranch Village Six I/..( Lib June 24, 2002 Page 2 "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 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 rcplacing or supplcmenting 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 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 maximmn mmual 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). "Ontstanding 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 McMi li otay szx ! q c~ ? 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 Califomia, 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 detcrmination of Resideutial 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 Residcntial 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 Ycar for CFD No. 2001-2 to: (i) pay debt service on all 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 ali 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 California. "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, fiscal agent, or paying agent under the Indenture. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 ~..? [~ ? Page 4 McMillin Otay Ranch Village Six / , ~ / ? B. ASSIGNMENT TO LAND USE CATEGORIES 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 (1) the Assigned Special Tax described in Table 1 below or (2) the mount 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 I Class Description Maximum Annual Special Tax 1 Residential $ 440 per unit plus S.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: City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 /?_I I [~'~ Page5 McMillin Otay Ranch Village Six $11,365 x A L The terms above have the following meanings: 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 Undcvclopcd Property to bc 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 xvithin 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 new or amended Final Subdivision Map (by an applicable final map, parcel map, condominium plan, record of survey, or off,er recorded document creating the parcels) 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 Con'Lmencing with Fiscal Year 2002-2003 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 Ci0' of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 6 McMillin Otay Ranch Village Six / ~ - ~- 0 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. 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 lxvo steps have been complctcd, the Special Tax to be lcvicd 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 I00% of the Maximum Annual Special Tax for Undeveloped Prope~ty. Notwithstanding the above, under no circmnstances will the Spccial 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 subdivisions therein as property exempt fi.om 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. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 7 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 Community 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 purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 75.48 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 sum 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-cxelnpt slatus 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 trar~sfer or dedication to a public agency but which cannot be classified as exempt property as described in paragraph 2 of Scction E slqalI be prepaid in full by tine seller pursuant to Section H.1, prior to tile 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 lbo levy of the Special Tax as Undeveloped Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who pays the Special Tax and feds that the alnount of the Special Tax levied ou their Assessor's Parcel is in Ch-Or shall first consult with tile 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 mount 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 Manag~ 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. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 ~ ~ / ~ Page 8 c ,l in / 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 in 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. 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 previonsly issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Bond Year, e,:cluding Bonds to bc redeemed at a Iatcr date with ~l~e l~rocccds of prior prcpas~:~cnts 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 Pamel 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 Parccl may bc fully prepaid and thc 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 City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 9 McMillin Otay Ranch Village Six / ~"~ ~ 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: Paragraph No.: 1. For Assessor's Parcels of Developed Property, 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 Propcrty, based upon the building pem~it which has already been issned 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 sum of the total expected Maximum Anmml 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 amoant of Ot~tstanding Bonds to be retired cud prepaid (thc "Eom! 4. Multiply the Bond Redemption Adnount computed pursum~t to paragraph 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to bc rcdcc:ned (thc "Rcc[cJ~5~tio/t 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"). CiO, of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 !/I,~1 Page 10 McMillin Otay Ranch Village Six 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"). 11. The reserve fund credit (the "Reserve Fund Credit") shall equal the lesser off (a) the expected reduction in the reserve requirement (as defined in the Indenture), if any, associated with the redemption of Outstanding 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 thc Outstanding Bonds will not have bccn 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 13. Thc Maximum An,.~ual Special Tax prcpatq~cnt is equal to the sum of thc amounts computed pursuant to paragrapl~s 3, 4, 9, and 10, less thc amounts compntcd pursuant to paragraphs 11 and 12 (thc "P/'ci~O'mc~lz 14. From the Prepayment Amount, the amounts computcd pursuant to paragraphs 3, 4, 9, 11, and 12 shall be deposited into the appropriate fund as established under thc Indenture and be used to retire Outstanding Bonds or make debt service payments. Thc amount coinputcd pursuant to paragraph 10 shall bc rctained by CFD No. 2001- 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 Eom 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 City of Chula Vista June 24, 2002 Community Facilities District No. 200]-2 I L~ Page ]] McMillin Otay Ranch Village Six I CFD No. 2001-2 both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. 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 tlaat a partial prepaymcnl shaI] bo calculated according to thc following formula: PP= (PExF)+A These terms have the following meaning: PP = the partial prepayment PE - the Prepayment Amount calculated according lo Section H.1, min[is Administrative Expenses and Fees pm'suant 1o Step 10. F = lhe percent by which the owner oflhe Assessor's Parcel(s) is partially prepayin[z 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 tlne Maximum .~,nmml Special Tax shall noti~v the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum .~mual 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 author/zed to be levied on such Assessor's Parcel pursuant to Section D. City of Chula Vista June 24, 2002 Community Facilities District No. 2001-2 Page 12 McMillin Otay Ranch Villa~,e Six / ~ ~ 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 Itl ~ Page 13 MeMi lin Otay Ranch Ss /. - RESOLUTION NO. RESOLUTION DECLARING NECESSITY TO INCUR A BONDED INDEBTEDNESS OF COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX), SLTBMITTING TO THE QUALIFIED ELECTORS OF SUCH COMMUNITY FACILITIES DISTRICT A PROPOSITION TO INCUR A BONDED INDEBTEDNESS SECURED BY THE LEVY OF A SPECIAL TAX WITHIN SUCH COMMUNITY FACILITIES DISTRICT TO FINANCE CERTAIN TYPES OF PUBLIC FACILITIES AND GIVING NOTICE THEREON WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA (the "City Council"). has previously declared its intention and held and conducted a public hearing relating to the issuance of bonds to be sccm'ed by special taxes to finance certain public facilities in a community facilities district, as authorized pursuant to the terms and provisions of the "Mello- Roos Community Facilities Act of 1982", being Chapter 2.5, Part I, 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 Ad'ticle Xt 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 (OTAY RANCH - MCM1LLIN PORTIONS OF VILLAGE SIX) (the "District"); and, WHEREAS, at this time the City Council desires to proceed to make the determination of necessity to incur a bonded indebtedness for the District, to declare the purpose for such debt, and to authorize the submittal of a separatc proposition to the qualified electors of the District, being the landowners of the District, all as authorized and required by law; WHEI<JzAS, thc City Coui}cil t'urti~c~ desires to autiloiiz~: tile submittal o/propositions to such qualified electors of the District to (a) authorize the levy of special taxes within the District and (b) to establish an appropriation limit for the District; : WHEREAS, all of the qualified electors of the District have waived the time limits specified in the Act pertaining to the conduct of the election and the requirements for impartial legal analysis and arguments have also been waived by the unanimous consent of the qualified electors of the District; and WHEREAS, the City Clerk, as the Election Official, has concurred in the shortening of time for conducting the election. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. 1 SECTION 2. NECESSITY FOR BOND ISSUES. The City Council hereby expressly declares and states that it is necessary to incur a bonded indebtedness of the District as author/zed under the terms and provisions of the Community Facilities District Law, in order to finance the types of public facilities described in Section 3 below. SECTION 3. BOND INDEBTEDNESS FOR THE DISTRICT. The specific purposes for the proposed bonded indebtedness for the District is as follows: To finance a portion of the costs of the acquisition or construction of certain public facilities consisting of the types of facilities described in Exhibit A hereto (the "Facilities") which is incorporated herein by this reference, appurtenances and appurtenant work and any and all of those applicable incidental costs described in and authorized by Govemmenl Code Section 53345.3. For a further description of the Facilities, re/Ereocc is made 1o thc Report. SECTION 4. TERRITORY TO PAY FOR BONDED INDEBTEDNESS. This City Council determines that all of the taxable property within the District will pay for the bonded indebtedness referred to in Section 3 above. A general description of District is as follows: All property within thc boundaries t~f Community Facilities District No. 20062 (McMillin - Otay Ranch - Village Six), as shown on a map as previously approved by thc Cit~ Council, such map designated by thc name of this District, a copy of which is on file in the Office of the City Clerk (the "Boundary Map"). SECTION 5. BONVD AMOUNT. The amoun~ of tl~e i~roposcd bonded indebtedness, including the cost of the Facilities, together with all incidental expenses, shall not exceed the following: SECTION 6. BOND TERM This City Council hereby further determines that the maximum term of bonds and/or any series shall not exceed forty (40) years, and such bonds may be issued in differing series, at differing times. The maximum rate of interest to be paid on such bonds may not exceed the greater of either twelve percent (12%) per annum or the maximum rate permitted by law at the time of sale of any of such bonds. The bonds, except where other funds are made available, shall be paid exclusively from the annual levy of the special tax within the District, and are not secured by any other taxing power or funds of the District or the City. SECTION 7. ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, this City Council hereby establishes the following accountability measures pertaining to any bonded indebtedness incurred by or on behalf of the District: 2 A. Such bonded indebtedness shall be incurred for the applicable specific purposes set forth in the Section 3 above. B. The proceeds of any such bonded indebtedness shall be applied only the applicable specific purposes identified in Section 3 above. C. The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account into which the proceeds of such indebtedness shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with this City Council as required by Government Code Section 53411. SEC'I'ION 8. ELECTION. The propositions related to the incurring of the bonded indebledncss shall be submitted to the appropriate qualified voters, together with ballot propositions to authorize the levy of special taxes within the District and to establish an appropriations limit for the District, at a special election to be held on the 20th day of August, 2002, and such election shall be a special election to be conducted by the City Clerk (the "Election Official"). If any proposition for thc levy of thc special tax and any proposition for incurring Ibc bonded indebtedness receive the approval of two-thirds (2/3) or more of the votes cast on each respective proposition, bonds may be authorized, issued and sold for thc applicable purpose set t'orth bcrcin proposition to establish the appropriations limit for tile District receives the approval of a n:ajoiity o£thc xotcs cast on such pioposition, such appropriations= limit shall bo cstablishcd. SECTION 10. BALLOTS. The ballot proposals to be submitted to the qualified voters of each PROPOSITION A Shall the City of Chula Vista Community Facilities District No. 2001-2 (McMillin - Otay Ranch - Village Six), subject to accountability measures set forth in Resolution No. __, levy a special tax throughout the District pursuant to the rate and method of apportionment thereof set forth in such resolution for the purposes of paying debt service on bonds of such district, replenishing the reserve fund for such bonds, paying costs of administering such indebtedness and such district and paying directly for facilities described in such resolution? 3 PROPOSITION B Shall the City of Chula Vista Community Facilities District No. 2001-2 (McMillin - Otay Ranch - Portions of Village Six), subject to accountability measures set forth in Resolution No. ., incur a bonded indebtedness of such district in an amount not to exceed $13,000,000 for the specific purposes of financing the facilities described in such resolution? PROPOSITION C Shall fine City of Chula Vista Community Facilities District No. 2t>f)]-2 (McMillin - Olay Ranch - Portions of'Village Six) cslablish an Article XIIIB appropriations limit equal to $13,000,000? SECTION 10. VOTE The appropriate mark placed in the voting square after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in thc voting squarc after tile word "NO" in tile manncr as aufl~orizcd, shall be cotmtcd against tile adoption of sucln proposition. and a'.l stcps necessary for thc laolding oFsc~ch elccti~)n. Thc Election Official shall pcrFoi'n2 and which services shall include, but not be limited to, the following activities as are appropriate to thc dcctiou: A. Prepare and furnish to the election officers necessary election supplies for the conduct of the election. B. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. : C. Furnish and address official ballots for the qualified electors. D. Cause the official ballots to be delivered to the qualified electors or their authorized representatives, as required by law. E. Receive the returns of the election and supplies. F. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. G. Canvass the returns of the election. H. Furnish a tabulation of the number of votes given in the election. 4 I. Make all arrangements and take the necessary steps to pay all costs of the election incurred as result of services performed by the District and pay costs and expenses of all election officials. J. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. PREPARED BY: APPROVED AS TO FORM BY: John P. IJppitr John Kaheny Director of- Public \Vorks Cit} :Mlol'incv 5 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 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. Exhibit A Proposed List of Facilities City ofChula Vista Community Facilities District No. 2001-2 (McMillin Otay Ranch Village Six) · 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-12S) · Birch PJrk\\"ay Ofrsitc (LJ \1cdia Road to \1:lgdalenJ) · La Media Bridge (betwcen VilLtgcs G & 2) · East O1ympic Parkway Bridge (between SPA 1 and Village G) · Neighborhood Park (Common Usab1e Open Space) 10cated between R-I and R-3 In addition to the above improvements, this CFD's bonding capacity maybe used for the "Traffic Enhancement Program" within tbe greater eastern territories of ChuJa Vista. Tbese transportation facilities will be traffic capacity adding improvements and could include the following projects: · Telegraph Canyon Road East ofI-80S · Telegraph Canyon Road / I 80S On Ramp Improvements · Heritage Road (Olympic Parkway to Main Street) · East H Street Road Widening fi-¡ ~ b LJ -,.__._...~.,- --..-.-......-. Il ¡,_' -#/5 I, / ~~f?- :~~ ~~~~ - - -- --- - - CllY OF CHUlA VISfA OFFICE OF THE CITY CLERK Dear Property Owner: RE: AUGUST 13,2002, CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAPP ARCEL) SPECIAL ELECTION The CITY COUNCIL of the CITY OF CHULA VISTA has called a special election to be held on August 13, 2002, within IMPROVEMENT AREA NO. 1 and IMPROVEMENT AREA NO.2 (each, an "Improvement Area") of COMMlINITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) (the "District"), to permit the qualified voters of each Improvement Area to consider (a) a ballot measure pertaining to the proposed authorization to of special taxes within each Improvement Area of the District to finance maintenance of (i) wetlands and landscaped areas within the public rights-of-ways and other public easements throughout the District and (ii) facilities that are directly related to storm water quality control throughout the District and (c) a ballot measure to establish an appropriations limit for the District. The qualified electors within each Improvement Area for purposes of this election are the landowners, i.e., the owners of land within each such Improvement Area. As a qualified elector, you will receive one vote for each acre, or portion of an acre, which you own within an Improvement Area. If you own land in more than one Improvement Area, you will receive a separate ballot for each Improvement Area. Enclosed in this ballot package you will find the following documents to assist you in exercising your right to vote in this election: o Instructions to landowner voters. o Official Ballots. o Copy of "Resolution Forming And Establishing Community Facilities District No. 07M (EastLake III - Woods, Vistas and Land Swap Parcel), Designating Improvement Areas Therein And Authorizing Submittal Of Levy Of Special Taxes To The Qualified Electors Thereof' (the "Resolution of Formation"). o Ballot Envelope. In order for any vote to be counted in the election, it must be received by the City Clerk of the City, acting as the Election Official, not later than one hour following the adoption by the City Council of the Resolution of Formation on August 13,2002. 276 FOURTH AVENUE· CHULA VISTA. CALIFORNIA 91910· (619) 691-5041· FAX (619) 585-5774 @POBI.Consumo,RecycledPape, August 13, 2002 CFD NO. 07M Should you have any questions regarding this letter, the ballot package or the voting procedure, please ask the City Clerk. Very truly yours, -~~?.J t9 J CITY CLERK ELECTION OFFICIAL CITY OF CHULA VISTA CITY OF CHULA VISTA COUNCIL AGENDA STATEMENT Item )'f:~ Meeting Date 8/13/02 ITEM TITLE: Public Hearing regarding the formation of Community Facilities District No. 0TM (Eastlake I11- Woods, Vistas and Land Swap Parcel) A. Resolution of the City Council of the City of Chula Vista, California, forming and establishing Community Facilities District No. 07M (Eastlake III- Woods, Vistas and Land Swap Parcel), designating improvement areas therein and authorizing submittal of levy of special taxes within each such improvement area to the qualified electors thereof B. Resolution of the City Council of the City of Chula Vista, California, acting in its capacity as the legislative body of Community Facilities District No. 07M (Eastlake III- Woods, Vistas and Land Swap Parcel) declaring the results of a special election in such Community Facilities District C. Ordinance of the City Council of the City of Chula Vista, California, acting as the legislative body of Community Facilities District No. 0TM (Eastlake III- Woods, Vistas, and Land Swap Parcel) authorizing the levy of a special tax within each improvement area of such Community Facilities District SUBMITTED BY: Director of Public Wor~s~~__ REVIEWED BY: City Manager ri p,a, (4/5ths Vote: Yes__ No X ) On July 9, 2002 the City Council initiated the CFD No. 07M proceedings by adoption of Resolutions 2002-244 through 2002-246. Tonight's action will conclude the formal proceedings to establish CFD No. 07M. This distr/ct 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 Page 2, Item Meeting Date 8/13/02 only). The City has retained the scrviccs of MuniFinancial as special tax consultant and Best Best and Kricgcr LLP as.legal counsel to provide assistance during the proceedings. RECOMMENDATION: That Council: 1. Open Public Hearing and receive lestimony from the public, 2. Approve the resolution forming and establishing Community Facilities District No. 07M (Eastlake 111- Woods, Vistas, and Land Swap Parcel), designating improvement areas therein and authorizing submittal of levy of special taxes within each such improvement area to the qualified electors thereof, 3. Conduct a Special Tax Election, 4. Approve the resolution declaring the results of a special election in Community Facilities District No. 07M (Eastlake III- Woods, Vistas, and Land Swap Parcel), and 5. Approve the ordinance authorizing the levy of special tax within each improvement area of Community Facilities District No. 07M (Eastlake III- Woods, Vistas, and Land Swap Parcel). BOARDS/COMMISSIONS RECOMMENBrATION: 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 (I) 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 Page 3, Item / ~ Meeting Date 8/13/02 collected fi-om 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, staffhas 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 "RMA"). The RMA has also been modeled after similar open space maintenance districts in the surrounding area. During it's July 9, 2002 meeting, City Council approved Resolution No. 2002-246 which ordered the preparation of a Community Facilities District Report ("Report"). The Report includes the following information in greater detail: Area of Benefit The proposed boundaries of CFD No. 07M encompass parcels located within the Eastlake II1 - Woods and Vistas and Land Swap Parcel. The district wilI 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 distr/ct 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 conformed copy of the recorded map is attached as Exhibit "1". 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 EastIake III - Woods and Vistas and Land Swap Parcel. A complete list of such improvements is attached as Exhibit "2". 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, lewing and collecting taxes, public assistance, etc.) by the Engineering Division. Staff and Consultant have reviewed and recommend approval of the proposed budget. Exhibit "3" contains a detailed annual budget for the district at buildout. Page4,1tem /~ Meeting Date 8/13/02 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. · 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 bas 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. Due to the preliminary stage of development planning fbr Improvement Area No. 2, it is anticipated that the budget and rate and method of apportiomment may need to be modified at a later date. As a condition of approval of the Tentative Map both of these items will be reviewed and modified prior to approval of the first Final Map. Collection of Taxes At the begirming 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 Page 5, item ~ ~ Meeting Date 8/13/02 Developed Parcels, the actual rate of thc special taxes to be Ievicd 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": · 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 xvill collect the special taxes with the purpose of building up a six months operating reserve. The RMA provides that the annual budget for any 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 be 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. Page 6, Item /~ Meeting Date 8/13/02 Proposed Maximum Annual Special Taxes The proposed maximum annual special tax rates for fiscal year 2002/03 for a typical dwelling unit within Improvement Area No. I ofCFD 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 The proposed maximum annual special tax rates for fiscal year 2002/03 for a typical dwelling unit within Improvement Area No. 2 ofCFD 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/Ordinance There are two resolutions and one ordinance on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION OF FORMATION is the formal action of the City Council forming and establishing Community Facilities District No. 07M and authorizes the electors to vote on the special taxes. The RESOLUTION DECLARING ELECTION RESULTS is the formal action of the City Council declaring the results of a special election in Community Facilities District No. 07M. The ORDiNANCE AUTHORIZING THE LEVY OF A SPECIAL TAX is the formal action of the City Council authorizing the levy of a special tax within each improvement area of Community Facilities District No. 07M. Page 7, Item /~ Meeting Date 8/13/02 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 recovery for staff cost involved in the following activities: 1) District formation (Slaff cost estimated at $15,000); and 2) District annual administration costs (estimated staffcost each year is $30,000.) Exhibits: 1) Boundary Map 2) List of Public Improvements 3) Annual Budget J: EngineerLAGENDA\CAS ROF _8-13-02.doc EXHIBIT 2 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 Coetween 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 Parka,ay) · Medians (from Station 50+20 to Hume 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 Parka,ay and Wueste Road, and, · Pump Station south of Proctor Valley Road. Other Facilities directly related to removal of contammants 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 Parkw'ay (from Future SR 125 to SDG & E Easement) · Medians · North side of Olympic Parkway Eastlake Parkway (From SDG & E Easement to Ol~wnpic Parkway) · Medians J:\Engineer\LANrDDEV\Proiecrs\Easdake III\CFDkEX~IIBIT A - hnp for ROI vf6-27-O2doc EXHIBIT 2 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. Stoma 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 facilkies. 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 function or provide a service substantially similar to that function served or the service provided by the Facilities and Service described above. J:\Engineer\LANDDEV\Project s\Easdake III\CFD\EXHiBIT A - Imp {or ROI v6.6-27-02 doc " u :¡; :ED.. ..c- o '" o ~ Z"C ro ü æ ¡¡; ï: ...J :;:§-g ~Oro - '" '" " '" üª(¡) Õ·~ >_ ,.,u. 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" ~ " 0 ~ 0 "' " " u ;0 · 0 0 w ~ ''::: '" E E E " Õ u au Õ E 0 " " " ü w · a · " " ~ ¡¡; ¡¡; ¡¡; · > 0 :;' " x S! - '" ~ w ~ ¡¡; õ o "3 ~ "' > · 2! " x 2! " ¡¡ w Q. ", M Õ M · " '> · õ ~ u Õ ~ u /5-P-l RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), now desires to proceed with the establishment of 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 I, 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"). Such 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 , , WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the designation of the Improvement Areas within the District, the financing of certain types of services and all other related matters has been given, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish such District; and, WHEREAS, all communications relating to the establishment of the District, the designation of the Improvement Areas, the proposed services and the rates and methods of apportionment of the special tax proposed to be levied within each Improvement Area have been presented, and it has further been determined that a majority protest as defined by law has not been received against these proceedings or the levy of the special tax within either Improvement Area; and WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territory of each Improvement Area of the District for at least the preceding ninety (90) days, the authorization to levy special taxes within each Improvement Area of the District shall be submitted to the landowners of each such Improvement Area, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Determinations. It is hereby determined by this City Council that: 1 /5-15 A. All prior proceedings pertammg to the formation of the District and designation of the Improvement Areas were valid and taken in conformity with the requirements of the law, and specifically the provisions of the Community Facilities District Law, and that this finding and determination is made pursuant to the provisions of Government Code Section 53325.1. B. The written protests received, if any, do not represent a majority protest as defined by the applicable provisions of the Community Facilities District Law and, therefore, the special tax proposed to be levied within each Improvement Area of the District has not been precluded by majority protest pursuant to Section 53324 of the Government Code of the State of California. C. The District as proposed conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts (the "Goals and Policies"), as amended. D. Less than twelve (12) registered voters have resided within the territory of each Improvement Area within the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of each of the Improvement Areas within the District shall be the landowners of such Improvement Area as such term is defined in Government Code Section 53317(f) and each such landowner who is the owner of record as of the close of the public hearing, or the authorized representative thereof, shall have one vote for each acre or portion of an acre of land that she or he owns within such Improvement Area. E. The time limit specified by the Community Facilities District Law for conducting an election to submit the levy of the special taxes to the qualified electors of each Improvement Area of the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of each such Improvement Area. F. The City Clerk, acting as the election official, has consented to conducting any required election on a date which is less than 125 days following the adoption of any resolution forming and establishing the District. SECTION 3. Community Facilities District Report. The Community Facilities District Report, as now submitted, shall stand as the Community Facilities District Report for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. Name of District. This legislative body does hereby establish and declare the formation of the Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL)." 2 /6 -I b SECTION 5. Boundaries of the District and the Improvement Areas. The boundaries of the District and each ofthe Improvement Areas are generally described as follows: All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL), as shown on a boundary map as previously approved by this legislative body, 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. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego, at Page of Book of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6. Designation ofImprovement Areas. For purposes of financing of, or contributing to the financing of the types of services described in Section 7 below, this City Council, acting pursuant to Government Code Section 53350, hereby designates portions of the District as the following Improvement Areas as shown on the Boundary Map of the District: IMPROVEMENT AREA NO. I IMPROVEMENT AREA NO.2 SECTION 7. Types 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. It is the intention of the City Council to finance all direct, administrative and incidental annual costs and expenses necessary to provide the authorized maintenance and services. For a full and complete description of the public services, reference is made to the final Community Facilities District Report, a copy of which is on file in the Office of the City Clerk. For all particulars, reference is made to such Community Facilities District Report. SECTION 8. Special Tax. Except where funds are otherwise available special taxes, secured by recordation of a continuing lien against all non-exempt real property in the respective 3 IS-J7 Improvement Areas of the District, are hereby authorized, subject to voter approval, to be levied annually within the boundaries of such District. 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 shall be collected in the same 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; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. 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, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. 4 IS-/~ SECTION 9. Special Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes described in Section 8 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 8. above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 8. above. C. The District shall establish a separate account into which the proceeds of each such special tax shall be deposited. D. The City Manager or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. SECTION 8. Preparation of Annual Tax Roll. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Engineering Department City ofChula Vista 276 Fourth Avenue Chu1a Vista, CA 92010 (619) 691-5021 SECTION 10. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of each Improvement Area within the District, such electors being the landowners within each such Improvement Area with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within each such Improvement Area. This legislative body hereby further directs that the separate ballot propositions relating to the levy of the above referenced special taxes within each Improvement Area be combined and consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for the District. The propositions related to the levy of the special taxes shall, together with a proposition to establish an appropriations limit for the District, shall be submitted to the qualified voters at a special election to be held on (a) August 13, 2002 immediately following the adoption of this resolution or (b) such other date as the qualified electors and the City Clerk may mutually agree and such election shall be a special election to be conducted by the City Clerk (hereinafter referred to as the "Election Official"). If either or both of the propositions for the levy of the 5 16 -/9 special taxes receive the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax thereby approved may be levied as provided for in this Resolution. SECTION 11. Ballot Proposals. The ballot proposals to be submitted to the qualified voters at the election shall generally be as follows: IMPROVEMENT AREA NO. I PROPOSITION A Shall the City of Chula Vista Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas and Land Swap Parcel), subject to accountability measures set forth in Resolution No. , levy a special tax throughout Improvement Area No. I of such district pursuant to the rate and method of apportionment thereof set forth in such resolution (the "Rate and Method") for the purposes of financing the Special Tax Requirement as defined in the Rate and Method? IMPROVEMENT AREA NO.2 PROPOSITION B Shall the City of Chula Vista Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas and Land Swap Parcel), subject to accountability measures set forth in Resolution No. , levy a special tax throughout Improvement Area No. 2 of such district pursuant to the rate and method of apportionment thereof set forth in such resolution (the "Rate and Method") for the purposes of financing the Special Tax Requirement as defined in the Rate and Method? IMPROVEMENT AREA NOS. 1 AND 2 PROPOSITION C Shall the City of Chula Vista Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas and Land Swap Parcel) establish an Article XIIIB appropriations limit equal to $2,000,000? SECTION 12. Vote. The appropriate mark placed in the voting square after the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the voting square after the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. SECTION 13. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for holding the above election. The Election Official shall perform and render all 6 }5-W services and proceedings incidental to and connected with the conduct of the election, including but not limited to, the following: I. Prepare and furnish to the necessary election supplies for the conduct of the election. 2. Cause to be printed the requisite number of official ballots, tally sheets and other necessary forms. 3. Furnish official ballots for the qualified electors of each Improvement Area of the District. 4. Cause the official ballots to be presented to the qualified electors, as required by law. 5. Receive the returns of the election and supplies. 6. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. 7. Canvass the returns of the election. 8. Furnish a tabulation of the number of votes given in the election. 9. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. PREPARED BY: APPROVED AS TO FORM BY: CL ~ ÆMh. John Kaheny City Attorney John P. Lippitt Director of Public Works 7 /5 - 2/ EXHIBIT "A" CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 A Special Tax of Community Facilities District No. 07M (Eastlake III Woods, Vistas, and Land Swap 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 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. A-1 "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requircment and providing for the Ievy and collection of the Special Taxes. "CFD" means Community Facilities District No. 07M of the City of Chula Vista. "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 ail 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 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. 1 for such Fiscal Year. A-2 "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 structure consisting of two or more 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 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 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 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. 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 govemtnent, 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 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. A-3 "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 unil. "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 lA No. I to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. I to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay ally amounts required to establish or replenish the Reserve Fund to tile 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. I. "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. I for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means ail 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 (ii) 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 1 st 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. A-4 "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 lA 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 Io 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 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 Developed Property Community Facilities District No. 0TM Improvement Area No. 1 i Lan Landscape Storm Maximum d Description Maintenance Water Quality Special Tax I Use Maintenance Clas S 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 $991.98 per Acre $404.59 per Acre $1,396.57 per Property ] 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 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. A-5 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 Association Property Acre 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 Con~rnencing 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 mount 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 FinaI 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; A-6 Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the firsl 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 Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. I 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 Association Property provided that no such classification would reduce the sum of ali taxable Property to less than 346.59 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 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 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 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 A-7 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, lA No. 1 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 valorem 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. I o£the CFD or as otherwise determined appropriate by the CFD Administrator. H. TERM OF SPECIAL TAX TaxabIe Properly in lA No. I of the CFD shall remain subject to the Special Tax in perpetuity. C:\WIN DOW S\Temp~rary InterncI Files\OLKA 130\Resolution ol' Formation CFD 07M dt~c A-8 EXH[B1T B CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE 1II - WOODS, VISTAS AND LAND SWAP PARCEL) RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 2 A Special Tax of Community Facilities District No. 07M (Eastlake III Woods, Vistas and Land Swap Parcel) of the City of Chula Vista CCFD'') 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. 1. 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 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 mount 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. B-1 "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 Taxcs. "CFD" means Community Facilities District No. 0TM of the City of Chula Vista. "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 I 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. "Multi-Family Property" means all Assessor's Parcels of Developed Property tbr which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, iucluding, 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. 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 Association 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 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 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. B-3 "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 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 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, hydrodynanfic 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 (ii) 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 1 st 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. B-4 "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. J. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all 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 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. 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. K. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 07M Improvement Area No. 2 Lan Landscape Storm Maximum d Description Maintenance Water Quality 'Special Tax Use Maintenance Clas S 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 $845.02 per Acre $209.93 per Acre $1,054.95 per Property 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 Special Tax levies that B-5 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. 2 --Land Landscape Storm Maximum Use Description Maintenance Water Quality Special Tax Class Maintenance I 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 Association Property Acre 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). L. 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 mount 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; B-6 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 cach 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 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 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 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 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 B-7 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 detenninations 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. IA No.2 M, 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 valorem 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 ofIA No.2 of the CFD or as otherwise detennined appropriate by the CFD Administrator. N. TERM OF SPECIAL TAX Taxable Property in IA No.2 of the CFO shall remain subject to the Special Tax in perpetuity. H:\ENGINEER\boushra\CFD 07M Reso of Formation 8~¡'J~02.Joc B - 8 16-37 -~- -- _.~-_.,._..."~..~..,-_..'-"--" -".._-- ----..---.- ._. ~,- RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III _ WOODS, VISTAS AND LAND SWAP PARCEL) DECLARING THE RESULTS OF A SPECIAL ELECTION IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has previously undertaken proceedings to create and did establish a Community Facilities District and designate two improvement areas therein pursuant to the tenus and provisions of the "Mello-Roos Community Facilities Act of 1982," being Chapter 2.5, Part I, Division 2, Title 5 of the Government Code of the State of Cali fomi a (the "Act") and the City of ChuIa Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City ofChula 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 is referred to as COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) (the "District") and the Improvement Areas are designated as IMPROVEMENT AREA NO. I and IMPROVEMENT AREA NO.2; and, WHEREAS, this City Council did call for and order to be held an election to submit to the qualified electors of each of the Improvement Areas a proposition relating to the levy of special taxes within such Improvement Area and a separate proposition relating to the establishment of an appropriations limit for the District; and, WHEREAS, at this time said election has been held and the measures voted upon and each such measure did receive the favorable 2/3's vote of the qualified electors, and this City Council desires to declare the results of the election in accordance with the provisions of the Elections Code of the State of California. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION I. The above recitals are all true and correct. SECTION 2. This City Council hereby receives and approves the CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST, as submitted by the City Clerk, acting in her capacity as the Election official, said Statement identifying the measures voted upon and the number of votes given for and/or against the measures voted upon. A copy of said Certificate and Statement is attached hereto, marked Exhibit "A", referenced and so incorporated. I /5 -3g SECTION 3. The City Clerk is hereby directed, pursuant to the provIsions of the Elections Code of the State of California, to enter in the minutes the results of the election as set forth in said STATEMENT OF VOTES CAST. PREPARED BY: APPROVED AS TO FORM BY: 0-----. ~ ~ John Kaheny City Attorney John P. Lippitt Director of Public Works 2 /5-37 EXHIBIT "A"' CERTIFICATE OF ELECTION OFFICIAL AND STATEMENT OF VOTES CAST STATE OF CALIFORNIA ) COCNTY OF SAN DIEGO ) S5. CITY OF CHULA VISTA ) The undersigned, ELECTION OFFICIAL OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DOES HEREBY CERTIFY that pursuant to the provisions of Section 53326 of the Government Code and Division 12, commencing with Section 17000 of the Elections Code of the State of California, I did canvass the returns of the votes cast at the CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) SPECIAL ELECTION in said City, held August 13, 2002. I FCRTHER CERTIFY that this Statement of Votes Cast shows the whole number of votes cast in said District in said City, and the whole number of votes cast for the Measures in said District in said City, and the totals of the respective columns and the totals as shown for the Measures are fuII, true and correct. 1. VOTES CAST ON PROPOSITION A: YES NO 2. VOTES CAST ON PROPOSITION B: YES NO 3. VOTES CAST ON PROPOSITION C: YES NO WITNESS my hand and Official Seal this day of ,2002. CITY CLERK ELECTION OFFICIAL CITY OF CHULA VISTA STATE OF CALIFORNIA H:\ENGrNEER\boushra\CFD 07M Reso Dec1ar Election Results 8-13-02.doc 3 /5-LjO .....---."'..--.--.--..- .---.-.- ,--.-"'-----"- ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN EACH IMPROVEMENT AREA OF SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of a special taxes in each of the improvement areas within a community facilities district, aII as authorized pursuant to the terms and provisions of the "MeIIo-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 coIIectively as the "Community Facilities District Law"). This Community Facilities District is designated as COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III _ WOODS, VISTAS AND LAND SWAP PARCEL) (the "District") and each of the improvement areas are designated as IMPROVEMENT AREA NO. I and IMPROVEMENT AREA NO.2. The City Council of the City of Chula Vista, California, acting as the legislative body of Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas and Land Swap Parcel), does hereby ordain as foIIows: SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of special taxes within Improvement Area No. 1 pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "A" attached hereto (the "Improvement Area No.1 Special Tax Formula"), referenced and so incorporated. This City Council does, by the passage of this ordinance, authorize the levy of special taxes within Improvement Area No. 2 pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit "B" attached hereto (the "Improvement Area No.2 Special Tax Formula"), referenced and so incorporated. SECTION 2. This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annuaIIy determine the special taxes to be levied within Improvement Area No. 1 for the then current tax year or future tax years, except that the special tax to be levied within Improvement Area No. 1 shaII not exceed the maximum special tax calculated pursuant to the Improvement Area No.1 Special Tax Formula, but the special tax may be levied at a lower rate. This City Council, acting as the legislative body of the District, is hereby further authorized, by Resolution, to annuaIIy determine the special taxes to be levied within 1 /6 -Lf I Improvement Area No.2 for the then current tax year or future tax years, except that the special tax to be levied within Improvement Area No. 2 shaII not exceed the maximum special tax calculated pursuant to the Improvement Area No.2 Special Tax Formula, but the special tax may be levied at a lower rate. SECTION 3. The special taxes herein authorized, to the extent possible, shaII be coIIected in the same manner as ad valorem property taxes and shaII be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be colIected on the County tax roII or may, by resolution, elect to colIect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4. The special taxes shaII be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shaII be a continuing lien and shaII secure each levy of the special tax. The lien of the special tax shaII continue in force and effect until the special tax obligation is prepaid, permanently satisfied and canceled in accordance with Section 53344 of the Government Code of the State of California or until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. SECTION 5. This Ordinance shaII be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shaII cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Government Code Section 36933. Introduced at a regular meeting of the City Council of the City of Chula Vista, California, on ,2002; Enacted at a regular meeting of the City Council of the City of Chula Vista, California, held on the day of , 2002, by the foIIowing vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST APPROVED AS TO FORM: John Lippitt fA-- 1'v\.-<9-{W. ~ John Kaheny 2 /5 --,-/2 Exhibit "A" CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 1 A Special Tax of Community Facilities District No. 07M (EASTLAKE III - Woods, Vistas, and Land Swap 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. Ail 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 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 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" means the City of Chula Vista. "City Clerk" lneans 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 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. 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 tbr 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 apartment units. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) bas 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 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 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. 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 govemment, 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 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 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. 1 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. I 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. 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 ali 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 (ii) 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 1 st 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. I 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. 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 Developed Property Community Facilities District No. 0TM Improvement Area No. 1 Lan Landscape Storm Maximum d Description Maintenance Water Quality Special Tax Use Maintenance Clas s 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 $991.98 per Acre $404.59 per Acre $1,396.57 per Property 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 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. 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 Association Property Acre 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. 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 ltems). 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 SpeciaI 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 Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. I 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 1 st 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 Association Property provided that no such classification would reduce the sum of all taxable Property to less than 346.59 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 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 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 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 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. IA No. 1 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 valorem 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. C:\W1NDOWS\Tcmporary Interact FJIes\OLKA 130\Ord Authorize Levv of Special Tax CFD 07M.doc Exhibit "B" CITY OF CHULA VISTA COMMUNITY FACILITIES D1STRICT NO. 07M (EASTLAKE III - WOODS, VISTAS AND LAND SWAP PARCEL) RATE AND METHOD OF APPORTIONMENT FOR IMPROVEMENT AREA NO. 2 A Special Tax of Community Facilities District No. 07M (Eastlake 11I 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. 1. 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 I, 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. 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. B-1 "CFD Administrator" means an official of the City, or designee thereof, responsible for delermining 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" 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 l, 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 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. 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. B-2 "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 lA 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. "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 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. 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 Association 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 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 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. "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 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 Stat~ of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and ail 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 (ii) Property Owner Association Property , or (iii) Assessor's Parcels defined as Conununity 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. .1. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all 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 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. 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. K. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 0TM Improvement Area No. 2 Lan Landscape Storm Maximum d Description Maintenance Water Quality Special Tax Use Maintenance Clas S I 1 Residential Property $0.056 per Sq Ft $0.014 per Sq Ft $ 0.070 per Sq Ft i 2 Multi-Family Property $0.056 per Sq Ft $0.014 per Sq Ft $0.070 per Sq Ft I 3 Non-Residential $845.02 per Acre $209.93 per Acre $1,054.95 per I Property 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 Special Tax levies that B-5 may be imposed on all Land Use Classes located on that Assessor's Parcel. The CFD Administralor shall determine the allocation to each Land Use Class. B-6 2. Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 0TM 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 Association Property Acre 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). L. 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; B-7 /5-5-7 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 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 I st 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 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 classified as exempt property wilI be classified as Taxable Property Owner Association Property m~d 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 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 B-8 City Manager who shall establish as part of the procecdings 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 appeaI. 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. IA No. 2 M. MANNER OF COLLECTION Special Taxes levied pursum~t to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem 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. 2 of the CFD or as otherwise detemfined appropriate by the CFD Administrator. N. TERM OF SPECIAL TAX Taxable Property in lA No. 2 of the CFD shall remain subject to the Special Tax in perpetuity. H:\ENGINEER\boushra\CFD 07M Ord Authorize Levy o1' Special Tax 8-13-02 doc B-9 CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: ITEM TITLE: A) PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH RESPECT TO THE PROPOSED MAIN PLAZA AFFORDABLE HOUSING PROJECT. B) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR ~ ~, REVIEWED BY: CITY MANAGER ~ ~'~ ~ 4/5.,s VOTE: .s NO Avalon Communities LLC has proposed the development of a mixed-use project consisting of 106 affordable units and 15,000 square feet of retail commercial space. The project, known as "Main Plaza", will be located on the northeast corner of Main Street and Broadway within the Southwest Redevelopment Project Area and the Montgomery Specific Plan (Exhibit 1 ). On June 13, 2000, the Ci'h/ and Agency approved a special use permit, density bonus, and conditionally approved financial assistance in the form of a loan not to exceed $1,060,000 to Avalon Communities LLC for the development of a mixed-use project comprised of 106 affordable multifamily units and 15,000 square feet of retail commercial space (reference Resolution No. 1673). On June 19, 2001, the City Council and Redevelopment Agency conditionally approved additional financial assistance in an amount not to exceed $750,000 ($300,000 from the City's HOME funds and $450,000 from the Agency's Low and Moderate Income Housing Set-Aside fund) for the projed. Subsequently, in May 2001, the California Debt Limit Allocation Committee (CDLAC) awarded the project o bond allocation of approximately $6.5 million to cover the majority of financing costs. California Statewide Communities Development Authority (CSCDA) acted as the issuer of the multifamily housing revenue bonds. The CSCDA is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City of Chulo Vista. CSCDA pursuant to its Amended and Restated Joint Exercise of Powers Agreement is PAGE 2, ITEM NO.: /~ MEETING DATE: 8/13/02 authorized to assist in the financing of facilities for affordable housing, including the facility to be cor~structed by Avalon Communities. Since such time, the project was successful in receiving funding under the State Farmworker Grant Program. However, with the additional requirements of the Farmworker Grant Program, increases in development costs since the approval of this project and to remain eligible for the Bond/4% Tax Credit, Main Plaza will require additional bond financing. Therefore, the Developer has requested the CSCDA issue multifamily housing revenue bonds in an amount not to exceed $10,000,000, an additional $3.5 million from the bonds allocated by CDLAC. In order to initiate this financing request, the City of Chula Vista must: (1} conduct a public hearing (Tax and Equity Fiscal Responsibili~ Act or TEFRA hearing) on the proposed financing and; (2) approve CSCDA's issuance of indebtedness. Therefore, although CSCDA will be the issuer of the tax-exempt obligation for Avalon Communities the financing cannot proceed without the approval of the City of Chula Vista. Avalon Communities has submitted an application for State tax exempt fur~ding from CDLAC, which requires that proof of the TEFRA hearing be submitted by August 16, 2002. The proposed project has already been subject to review under CEQA, and therefore does not require additional environmental analysis. RECOMMENDATION That the City Council conduct the required public hearing regarding CSCDA'S intent to issue tax exempt bond obligations for the development of Main Plaza and that the City Council adopt a resolution approving the issuance, sale and delivery of multifamily revenue bonds by CSCDA to help finance the development of the Main Plaza Apartments. BOARDS/COMMISSIONS RECOMMENDATION On June 7, 2000 The Housing Advisory Commission recommended to the Redevelopment Agency and City Council approval of the project. _Th~ Proposed Project The project will include 106 affordable housing units and 15,000 square feet of retail commercial space with 180 residential and 73 commercial parking spaces. The mixed-use building will contain 15,000 square feet of ground-level commercial space, with residential garages in the back and 2-levels of residential above the garages. There are seven exclusively residential buildings throughout the site. /'// PAGE 3, ITEM NO.: ~ ,~ MEETING DATE: 8/13/02 There will be 106 total housing units, consisting of 60 two-bedroom units, 30 three-bedroom units, and 16 four-bedroom units. The proposed project will also offer a community room, garages, and social services provided by a local social service agency. The site is nearly cleared of the former uses of the properly, Twin Palms Mobilehome Park and a used car sales lot. Full clearance is expected within the next month. Proposed FinancinR of Project It is currently estimated that the proposed project cost will be $18,050,000. Sources of funding for the project will include approximately $9.4 million in bond proceeds (the subject of this TEFRA hearing), $4.7 million in Iow-income housing tax credits, $2,620,000 in developer equity and deferred developer fee, and $1,330,000 million from the City/Agency and other public funds. The bond/tax credit allocation will be used to substantially finance the projed. If successful in obtaining the necessary financing, construction is expected to begin in Fall 2002 and to be completed within eighteen months of construdion. FISCAL IMPACT The proceeds of the bonds will provide acquisition and construction funds for the developer at a lower cost than funds borrowed in a conventional bank loan. The Developer has requested that the CSCDA issue multifamily housing revenue bonds in an aggregate principal amount not to exceed $10,000,000 to provide construction and development financing for the 106 unit residential development. The bonds would be tax exempt private activity bonds for the purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the area where the projed to be financed is located. Neither the City nor the Agency would be under any obligation to repay the bond indebtedness or to incur any costs related to the issuance of the bonds. ATTACHMENTS Exhibit 1- Project Location Map. .~:\COMMDEV~STAFF.REP\08-13-02~,~113-Main Plaza Bond Issuance Aug~02.doc MAIN PLAZA N RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized pursuant to the provisions of California Govemment Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June I, 1988 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Chula Vista (the "City"), to issue revenue bonds in accordance with Chapter 7 of Part 5 of Division 31 of the California Health and Safety Code for the purpose of financing multifamily rental housing projects; and WHEREAS, Main Plaza, L.P. (collectively, with any related entity, including A valong Communities LLC, the "Borrower") has requested that the Authority issue multifamily housing revenue bonds in an aggregatc principal amount not to exceed $10,000,000 (the "Bonds") for the purpose of providing financing acquisition, construction and development of an approximately 106-unit multifamily rental housing project to be located at the northeast comer of Broadway and Main Streets in Chula Vista, California, and to generally be known as Main Plaza Apartments; and WHEREAS, the Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative" of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the members of this City Council (this "Council") are the applicable elected representatives of the City; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on the date hereof; and WHEREAS, such public hearing was conducted on said date by the City Council, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and Ib-.t;; WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA AS FOLLOWS: Section I. The above recitals are true and correct. Section 2. The Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the Council that this resolution constitute approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. Section 3. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing approved hereby. Section 4. The City Clerk of the City shall forward a certified copy of this Resolution and a copy of the affidavÎlofpublication of the hearing notice to: Ana Marie del Rio, Esq. Orrick, Herrington & Sutcliffe LLP Old Federal Reserve Bank Building 400 Sansome Street San Francisco, California 94111 Section 5. This resolution shall take effect immediately upon its passage. PREPARED BY: APPROVED AS TO FORM: ~~/ Chris Salomone Director of Community Development " J:\COMMDEV\RESOS\Main Plaza Bonds Aug '02.doc Ik-b COUNCIL AGENDA STATEMENT ITEM J q MEETING DATE: August 13, 2002 ITEM TITLE: Resolution approving the Parks and Recreation Master Plan. SUBMITTED BY: Director Building and Park Construction ~ REVIEWED BY: City Manager e r~i* (4/5ths Vote: YES NO X ) Approximately two years ago the Parks and Recreation Department was directed by the Mayor and City Council, with the support of, the City Manager, the Parks and Recreation Commission, and the GMOC to produce a comprehensive Parks and Recreation Master Plan that would guide the City in the development of parks and recreation facilities in the community at large over the next twenty years. The Parks and Recreation Master Plan is intended to offer guidance to the community, staff, and developer when designing new parks and recreation facilities. It is also envisioned that City staff will conduct public workshops during the programming/design stage of each neighborhood or community park; these workshops may suggest modifications to the identified programming in the Parks and Recreation Master Plan for a particular park. The Parks and Recreation Master Plan that is being presented to the Council tonight has been presesented to staff, developers, the Parks and Recreation Commission, GMOC, and has undergone a 30-day public review. Comments gathered from these groups have been incorporated into the document, which if approved, will guide the development of the Parks system well into the 21st Century. BOARD/COMMISSION RECOMMENDATION: Unanimously approved on March 27, 2002, minutes attached as Attachment A. RECOMMENDATION: That Council adopt the resolution approving the Parks and Recreation : Master Plan. DISCUSSION: In February 2000, a core group from Planning & Building, Parks & Recreation, Administration, Finance assembled to work together to build a comprehensive Parks Master Plan designed to provide all of the citizens of Chula Vista, with a Citywide Park System. The Parks and Recreation Master Plan represents a comprehensive park planning effort that recognizes that a park system is more than simply a collection of individual recreational elements. It represents a comprehensive and interrelated package of Community and Neighborhood Parks that give residents the opportunity for a complete recreational experience and a desirable addition to the environment in which to live. Each park must be viewed within the context of the whole park system to insure that it functions properly in providing a balance of recreational opportunities. 17-/ Item I-/PAGE 2 MEETING DATE: August 13~ 2002 The methodology employed to create the Parks and Recreation Master Plan included five distinctive steps: 1) Prepare an inventory of current park sites, recreation facilities, and related regulatory programs and policies; 2) Prepare a Recreation Needs Assessment; 3) Identify Current and Future Park and Recreation Needs based on the conclusions and findings identified from The Needs Assessment; 4) Develop Goals, Policies, and Action Items related to addressing the Current and Future Park and Recreation Needs; and 5) Develop an inventory of park sites and recreation facilities within each park site utilizing the directives identified in the Goals, Policies and Action Items. In order to establish a proper perspective and a framework for future park planning it was important to study the history of park planning in the City. The commitment for a quality parks and recreation system has continuously been pursued in the context of land use planning efforts since the City was incorporated in 1911. Parks were developed whenever and wherever land opportunities became available. The first park built in the City of Chula Vista following incorporation was Eucalyptus Park in 1927. As the City continued to grow additional parklands were acquired and developed. In developing the outline for the Parks and Recreation Master Plan specific goals for each chapter were established: Chapter One - A description of Current Parks & Recreation Resources · Provide a factual context for the overall Parks and Recreation Master Plan · The City's park history and development · The physical infrastructure and characteristics of the City as described in the current inventory of the City's public parks and recreation resources. · List of pertinent regulatory guidelines and City mandated requirements related to parks and recreation development. · List of general plan definitions of parks and recreation resources. · List of definitions of other parks and recreation resources not previously recognized/approved. Chapter Two - An assessment of the Recreational Service Needs of the Community · Assessment and evaluation of the recreational service needs of the community in a comprehensive and comparative manner. · Description of the relationship of recreation service needs to a spatial analysis within a comprehensive parks and recreation system. Chapter Three - Goals, Policies, and Action Items · Creating a cohesive, comprehensive, equitably distributed, accessible parks, and recreation system that is representative of the City's unique qualities. · Allocation of resources to the highest level possible · Clearly expressing the minimum acceptable facilities for citizens of every community. · Creating and clarifying guidelines for determining land requirements for the City's parks and recreation resources. · Establishing descriptive standards for park types. !'7-2 Item J~ PAGE3 MEETING DATE: August 13~ 2002 · Development ora recreation services delivery plan. · Development of an operation and maintenance plan. Chapter Four - The Physical Representation of the Comprehensive Plan · Identifying individual components of parks and recreation development within an overall comprehensive system context. · Identifying obligations (City's and new subdivision development) to the comprehensive plan, clarifying the level of service as previously established through the City's Parkland Dedication Ordinance. Chapter One: When establishing the goals it became apparent that in order to develop the Parks and Recreation Master Plan that the existing regulatory programs not only had to be considered but maintained. These regulatory programs included: the Chula Vista General Plan, the Quimby Act, the Parkland Dedication Ordinance (PDO), Growth Management Program (GMP), Capital Improvement Program (CIP), Multiple Species Conservation Program (MSCP), Greenbelt Master Plan, Cbula Vista Landscape Manual, Americans with Disabilities Act (ADA), Joint Use Agreements, and Redevelopment Plan Areas. In order to refine and re-define existing definitions for the Current Parks and Recreation General Plan; the City's Parks and Recreation System; and Parks and Recreation Resources Locations were reviewed for accuracy and updateablity. Chapter Two: After identifying all of the goals, disciplines, parameters, regulations, and locations the needs assessment surveys were compiled and reviewed for programming requirements. The summary of quantitative and qualitative findings and conclusions for the needs analysis are as follows: Analysis for year 2000 shows that a majority of the demand for parks and recreation resources is being met through the utilization of both public parkland and school land. Parks and recreation resources include park acreage and various types of recreational facilities. Utilizing both existing public parkland and existing school land, an additional 100-acres have been identified to meet the parks and recreation resource demand. If existing school lands are not included, approximately 465 acres of public parkland is required to accommodate existing overall need. Future increases through the year 2020 in population resulting from new development in the City will result in demand for new facilities. New development projects containing residential dwelling units will contribute parkland and facilities to serve the population resulting from new development. As a result of the analysis of the quantitative and qualitative needs assessment, it was established that the demand for active recreational facilities currently exceed available supply. Current shortages are due to the combined result of population increases resulting from the Montgomery annexation, new development both east and west of 1-805, and current socio-economic factors Item i ~? PAGE 4 MEETING DATE: August 13~ 2002 which have increased the City's population base, regulatory limitations on the ability of the City to exact parkland and improvements, and changing trends in demand for park and recreation facilities types and quantities. Future increases in City population due to the addition of residential units in both east and west Chula Vista will result in the demand for additional facilities through 2020. While a majority of the future demand for facilities can be met within planned public park sites, there will continue to be a need to rely on quasi-public facilities to augment recreation facility inventory in order to provide what is needed to accommodate the projected recreation facility needs. Chapter Three: Relying on the needs analysis, definitions, existing conditions, a set of goal, policies, and action plans were established to meet the identified demands. The goals and policies serve as a blueprint for creating a quality citywide park system: · Goal No. 1 - Fulfilling the Comprehensive Park System Needs by creating a comprehensive parks and recreation system, that utilizes public and quasi-public resources, that strives to meet the needs of the general public of Chula Vista by effectively distributing park types and their associated recreation facilities and programs. · Goal No. 2 - Priorities for Allocation of Resources by establishing priorities for allocation of existing and future public parkland resources that balance quality with the provision of needs. Goal No. 2 also refers to the City's decision not to grant parkland credit for "common useable open space" in the master plan. However, in some cases "corrunon useable open space" may qualify for "Community Purpose Facility" credit pursuant to the Chula Vista Municipal Code and the SPA plan. Developers may be required, as part of their project, to provide adequate "common useable open spaces" to enhance the quality of the neighborhood experience, especially when the master planned communities have a significant amount of small lot (less than 5,000 square feet) single family developments. · Goal No. 3 - Implementation Program that provides for a program of implementation. When these goals and policies are translated into actions, the Chula Vista Parks and Recreation system will meet its intended mission: "To provide an equitable park system that addresses current and future needs to the degree possible while maintaining park and open space quality. ' Chapter Four: Compilation of all of the preceding information in both graphic and tabular form identifies the distribution of needed recreation facilities; including a complete list of parks, by plarming area, along with park acreage and primary and support facility requirements. Item t'7 PAGE 5 MEETING DATE: August 13~ 2002 Looking into the future (2020) with the implementation of the goals and policies, the City will have over 650 acres of parkland available for recreational use. The parks and recreation system will provide Citywide resources for recreation services and programs with the goal of meeting the expressed needs of the community. The parks and recreation system will be composed of nine community parks, which will serve the City as a whole by providing recreation complexes, community centers, gymnasiums, an aquatic facility, and skateboard facilities as well as gathering areas, picnic facilities and restrooms. Closer to home, 46 Neighborhood and Parks will provide areas for tot lot play equipment, sports facilities, and programmed and non-programmed activities allowing residents recreational activities within walking distance of their homes. Neighborhood parks will also provide recreational facilities that complement resources provided at adjacent community parks. Today's regional parks will be further enhanced and connected to the community through a system of trails and bicycle ways. A greenbelt open space system will surround Chula Vista, making a unique setting within San Diego County focused on the recreational values of the City's populace. Ultimately the City's parks and recreation system is envisioned as an integrated system of recreation programs and services interwoven through its parklands and recreation facilities. ENVIRONMENTAL: The Environmental Review Coordinator has reviewed the draR Chula Vista Parks & Recreation Master Plan and has determined that its adoption is statutorily exempt from the California Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15262, Feasibility and Planning Studies. Please note, however, that all projects identified in the Master Plan will require future environmental review in accordance with the provisions of CEQA prior to development. FISCAL IMPACT: In order to fully implement the master plan, a large unquantified amount of money will be necessary to fund new parks and recreation facilities. Staff is beginning to hold discussions with the major developers regarding a new development impact fee program for recreation facilities and will soon be evaluating the adequacy of the existing Parkland Acquisition and Development fee level in order to provide a large portion of the financial resources necessary to fulfill this plan. Attachments: Attachment A - Parks and Recreation Commission Minutes, March 27, 2002 Attachment B - Parks and Recreation Master Plan /-7, City of Chula Vista ATTACHMENT A Parks and Recreation Commission Minutes Wednesday - 6:30 p.m. March 27, 2002 Mercy Building 430 Fourth Avenue 1. Roll Call Radcliffe A_, Rude P, Salcido ~ Weidner P, Ramos P, and Perondi A_. 2. APPROVAL OF MINUTES a. January 17, 2002 - MSC (Perondi/Rude) Reflect Commissioner Ramos as an excused absence. b. February 21, 2002 - MSC (Salcido/Rude) approved as presented. c. Approval of Parks & Recreation Master Plan Director Campbell introduced Rene Olivo, Assistant Director of Building and Park Construction. Director Campbell stated that he took excerpts from Chapters {1-4) of the Master Plan, and stated that he would talk about each chapter briefly. Director Campbell also stated that he would review the overall goals, methodology and historical context of the document. As a side note, Director Campbell stated that the Parks and Recreation Master Plan was ready in November 2001, but chose to withhold it because discussions regarding RecDIF were taking place. Chapter 5 is not included in today's presentation, and will be presented at a later date because RecDIF is not complete. Director Campbell stated that the overall goal of the Master Plan was to: · Prepare a comprehensive detailed document to assist in the development of parks and recreation resources in the City; · Describe the assessment of the community's desires for recreation services; · Outline processes that are planning driven; · Create a rational planning guideline that will provide a procedure for addressing the City's concerns regarding the development of the City's parks and recreation resources; · Outline the preferred visions, character, and direction; · Create parameters and guidelines; and · Establish a planning framework that becomes a bridge for implementation of facilities Director Campbell discussed the Methodology of the Master Plan which includes: · Prepare an inventory of current park sites, recreation facilities and related regulatory programs and policies; · Prepare a Recreation Needs Assessment; · Identity current and future parks and recreation needs based on the conclusions and findings; · Develop goals; policies and action items related to addressing the current and future park and recreation needs; and · Develop an inventory of park sites and recreation facilities within each park site utilizing the directives identified. Discussion held on Chapters I - 4, and also briefly discussed highlights of each chapter. Parks and Recreation Commission Minutes - 3/27/02 · Description of Current Parks and Recreation Resources; · Assessing the Recreational Services Needs of the Community; · Goals, Policies, and Action Items; and · The Physical Representation of the comprehensive Plan Discussion held on the current Parks and Recreation General Plan Definitions that include: · Regional Parks - parks that draw from the SD Community · Community Parks - parks that are 30 acres or larger · Neighborhood Parks - Walk-to parks in development neighborhoods · Mini Parks - Small pocket parks · Special Purpose Parks or Recreation - Areas could be oriented tor camping, equestrian, nature preserve, etc. · Commercial Parks and Recreation- Bowling, swimming, school resources, trails, etc. Director Campbell discussed the Parks and Recreation Resources Locations and stated thai the City is divided into five physical community plan areas IBayfront, Central Chula Vista; Montgomery Area; Sweetwater Area: and Eastern Territories Community plan area) as defined by the City's General Plan approved in 1995, which is in the process of being updated. Discussion held on each area's major feature with different park and recreation needs and issues. In addition, survey on Recreation Needs was conducted in 1995 in the Eastern Territories. Discussion held on the results. Commissioner Salcido commented on definition of parks and usage (Page 1-9), and asked if an agreement is in place by the school district with the City, and if a school causes a breach of contract, will this void and breach ali agreements? Director Campbell responded that, no they (the schools) are not tied together, by one agreement, and if one school breaches and MOU/Agreement it would not affect other MOUs. Commissioner Perondi responded that each school represents a different segment of the community with different needs. Example, EastLake High School can have discussions with the City regarding the use, misuse, overuse of the park next to the high school. Director Campbell stated that this is a topic that that can be brought forward to the commission at a later date. Director Campbell discussed Policy 1.14 which states the Primary Facilities requirements for future community parks and they include: · Athletic fields 2/lighting · Hard Courts with lighting · Picnic Shelter/Tables · Play area/equipment · Restrooms · Maintenance Building · Community Center Building with a gymnasium, community pool, senior annex or teen annex. · Support facilities with open lawn areas; paved walkways w/ lighting and parking with lighting Parks and Recreation Commission Minutes - 3/27/02 Commissioner Salcido inquired that Policy 1.13 defines the criteria the City will use for selecting land for future community parks, and also requested clarification on community park sites that provide rough graded useable land area. Director Campbell responded that a rough grade is not the finish grade. In addition, when the City accepts land from a developer, and the land is graded, the City requests that it is done in such a manner that an immense amount of PAD money is not spent on leveling the field. Discussion on Policy 1-18 states that primary facilities and support facilities are to be located in future neighborhood parks. This is to alleviate the transportation of maintenance equipment so staff may maintain the park and recreation facilities at a proper level. Discussion held on Policy 2.8 which is to provide fair and equitable access to sport fields and other sports facilities, to insure that all Chuia Vista residents have equal access to all Citywide facilities. Commissioner Perondi inquired about CIPs that may be considered necessary at certain parks in terms of facility improvement due to issues of safety, and when additional lighting is required to alleviate these types of problems. In addition, he asked if the Department ever received reports from the Police Department on which Parks were experiencing the most criminal activity, vandalism, etc. Also, he would like to see information on illegal activity occurring in the parks. Director Campbell responded that Public Works - Parks Division maintained the parks, and believed they documented vandalism, etc. Chair Weidner requested that if certain parks were experiencing safety issues due to illegal activity, that a CIP Project to install lighting might help alleviate these types of illegal activities. In addition, she requested that staff bring back a report regarding criminal activity, vandalism, etc. in the park system. She requested this report a month before CIP Projects go to Council. Director Campbell stated that staff would meet and talk with the Police Department regarding criminal activity in the parks, and a report would be prepared. In addition, information on CIPs will be brought forward. Deputy Director Byers explained that Public Works staff informs the Police Department of illegal activity, vandalism, etc, and have requested in the past to step-up extra patrol for parks that experience this type of activity. Chair Weidner commented that the Park near her previous house had posted hours and she believed that kept down criminal activity in that park:. In addition, she recalls having a discussion on policies that directed staff to keep lighting off at certain parks to curb criminal activity. Commissioner SalcJdo requested a revision to Policy 2.8 be added that indicates that storage facilities or "cement pad" be established for in-season sports at different park sites, for community parks. Chair Weidner stated that this statement is more feasible if it is inserted in Policy 1.14 rather than Policy 2.8. 3 /-7 -? Parks and Recreation Commission Minutes - 3/27/02 Commissioner Perondi stated that he would like fo see a standard created for future park development that would include storage. Director Campbell stated that he would include the statement "in-season league storage areas" in Policy 1.14 under Primary Facilities; this would allow the Commission to develop the language for the policy accordingly for storage areas/facilities. Commissioner Perondi stated thai he does not support cargo containers in the parks. Deputy Director Byers stated that in the future, staff is going to have to define "in-season" and "out of season" leagues. Director Campbell stated that the Youth Sports Council could define what "season" and "out of season" is. The Commission would then confer or not confer with their decision. Discussion held on Policy 2.9 which provides priority to the "in-season" sport groups to insure the ability to meet the demand for sports fields' games and practices. Discussion held on Policy 2.11 which proposed improvements to existing public parks, that includes upgrades and new construction that supplements the existing and future inventory of recreational facilities available in the City. Discussion held on Policy 2.12 which states that the City will evaluate opportunities for special purpose facilities on a case-by-case basis. This City will not grant park credit to special purpose facilities. Discussion held on Policy 2.13 which states that in master planned communities that have a significant amount of small lot single family development (less than 5,000 square feet) the General Development Plan and SPA Plans should provide adequate "common useable open spaces" to enhance the quality of the neighborhood experience. In addition, the City will not apply parkland credit for these "common useable open spaces." In some cases "common useable open space" may qualify for "Community Purpose Facility" credit pursuant to the Chula Vista Municipal Code and the SPA Plan. This will be maintained at the cost of the HCA. Chair Weidner asked about the arguments Director Campbell anticipated receiving because of Policy 2.13. Director Campbell responded that the developers want credit for the land. in addition, the developers are placing 3,000 sq. ft. homes on 5,000 sq. ft lots, in some cases, and in other lots, they are placing 2,300 sq. ft. homes on 3,000 sq. ft. lots. Director Campbell talked about Table 4.4 Neighborhood Park Recreation Facility Assignment, which are recommendations from staff for proposed neighborhood parks. These recommendations are supported in Chapter 4 of the document. Director Campbell talked about anticipated recreation facilities that will be coming on- line through the year 2020. Director Campbell talked about Neighborhood Park - Village 6 and stated that it was approved at the City Council meeting of 3/26/02. Discussion held on the amenities of the park that include softball field, soccer field, tennis courts with lighting; picnic tables; resfrooms and maintenance building. This is a proposed 10-acre park. 4 Parks and Recreation Commission Minutes - 3/27/02 Director Campbell also stated that the Master Plan will need to be reviewed by the Commission yearly, so that updates are incorporated and addressed accordingly per the needs of the community. Commissioner Perondi thanked staff for their work on the Master Plan. Chair Weidner stated that she did not see a policy in the Master Plan that states that this document is to be reviewed yearly by the Parks and Recreation Commission. In addition, she stated that this statement should be memorialized in the document, as well as, in the Strategic Plan, and not only as cover memo on the document. Commissioner Perondi stated that it should be included under "Goals of document on page 1-2 and again reiterated in the summary on Page 1-18." Director Campbell stated that he would include Chair Weidner's statement that the Master Plan is reviewed on a yearly basis, and per Commissioner Perondi, include under Goals of Documents and again reiterated in the summary. Chair Weidner also stated that she would like to see this statement as a preface. Chair Weidner and Commissioner Salcido stated that they wauld like to see this document available to the community for public comment, in addition copies should be sent to the Youth Sports Council. Director Campbell stated that changes that were discussed will be incorporated, and copies of the changes will be mailed to the Commission. MSUC Perondi/Rude (4-0-0-0) to approve the Parks and Recreation Master Plan with recommendations as discussed 3. Information Items - a. Otay Valley Regional Park Workshop - Director Martin discussed and distributed information on the City of San Diego Park Site Development announcement of the Public Workshop that will be held on April 6, 2002 at 9:00 a.m. at Southwest High School. Information was provided by Principal Landscape Architect HofmockeL b. Neighborhood Park @ Sunbow - Director Martin discussed and distributed information on the Community Workshops for Sunbow Park, which is an 11-acre public neighborhaod park in the Sunbow planned community. c. Community Workshop for EastLake Trails - Director Martin discussed and distributed information on the Community Workshop for Easflake Trails on April 6, 2002 from 9:00 - 12:00 noon at Creekside Recreation Center located in EastLake. 4. Unfinished Business -None 5. NEW BUSINESS - None 6. WRII'rEN COMMUNICATIONS- 7. COMMISSION COMMENTS - Commissioner Salcido stated that he needs a new name tag. 8. STAFF COMMENTS - Director Martin talked about the Murray-Hayden Grant that the Recreation Department is in the process of applying for the renovation of Gray Park. information will brought forward. Deputy Director Byers stated that Public Works Operations, Landscape Architecture Division, and the Transit Division staff will move to the new Public Works Center on 4/4/02 and 4/5/02. Park 5 I~arks and Recreation Commission Minutes - 3/27/02 reservations will be closed on 4/5/02 and commence Monday, April 8, 2002, at the new Public Works Center. Public Works Operotions (707 F Street) will be closed for business on Fridoy, April 5, 2002. The Public Works Center Dedication is scheduled on April 20, 2002, and invitations will be sent to the Commission. 9. Other - None Recorded by Margarita Cellano, Administrative Secretary Recreation Department 6 RESOLUTION NO. 2002-_ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PARKS AND RECREATION MASTER PLAN WHEREAS, the Parks and Recreation Department was directed by the City Council, with the support of the City Manager, the Parks and Recreation Commission, and the GMOC to produce a comprehensive Parks and Recreation Master Plan that would guide the City in the development of parks and recreation facilities in the community at large over the next twenty years; and WHEREAS, the Parks and Recreation Master Plan is intended to offer guidance to the community, staff, and developer when designing new parks and recreation facilities; and WHEREAS, it is also envisioned that City staff will conduct public workshops during the programming/design stage of each neighborhood and community park; and WHEREAS, these workshops may suggest modifications to identified programming in the Parks and Recreation Master Plan for any given park; and WHEREAS, the Parks and Recreation Master Plan has been presented to staff, developers, the Parks and Recreation Commission, GMOC, and has undergone a 30-day public review; and WHEREAS, comments gathers from these groups have been incorporated into the document. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Parks and Recreation Master Plan, a copy of which shall be kept on file in the Office of the City Clerk. Presented by Approved as to form by Andy Campbell Director Building and Park Construction ~9m<~ John . lfI'feny City Attorney J:\Attomey\Resos\park and fee master plan /7-/1- Jq RESOLUTION NO. 2002- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUPPORTING CONGRESS' REQUEST THAT THE NINTH CIRCUIT REHEAR THE CASE OF NEWDOW v. U. S. CONGRESS AND EXPRESSING DISAPPROVAL OF THE NINTH CIRCUIT DECISION IN NEWDOW v. U. S. CONGRESS WHEREAS, this country was founded on religious freedom by founders, many of whom were deeply religious; and WHEREAS, the First Amendment to the Constitution embodies principles intended to guarantee freedom of religious both through the free exercise thereof and by prohibiting the government establishing a religion; and WHEREAS, the Pledge of Allegiance was written by Francis Bellamy, a Baptist Minister, and first published in the September 8, 1892 issue of the Youth's Companion; and WHEREAS, Congress in 1954 added the words "under God" to the Pledge of Allegiance; and WHEREAS, the Pledge of Allegiance has for almost 50 years included references to the U. S. flag, the country, to our country having been established as a union "under God" and to this country being dedicated to securing "liberty and justice for all"; and WHEREAS, the Congress in 1954 believed it was acting constitutionally when it revised the Pledge of Allegiance; and WHEREAS, the city Council of the City of Chula Vista believes that the Pledge of Allegiance is not an unconstitutional expression of patriotism; and WHEREAS, patriotic songs, engravings tender, engravings on Federal buildings also references to "God"; and on U. S. legal contain general WHEREAS, in accordance with decisions of the U. S. Supreme Court, pUblic school students cannot be forced to recite the Pledge of Allegiance without violating their First Amendment rights; and 1 Ie¡ - J WHEREAS, the City Council of the City of Chula Vista supports Congress' request that the U. S. Court of Appeals or the Ninth Circuit rehear the case of Newdow v. U. S. Congress, en bane. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista strongly disapproves of the Ninth Circuit decision in Newdow v. U. S. Congress. Presented by Approved as to form by Shirley Horton Mayor [J :/attorneyJreso/newdow (July30,2002(11:35AM)) 2 ¡Q'2- ~I~ -fl- . --- .;: 0lY Of CHUIA VISTA TRANSIT COUNCIL INFORMATION MEMO August 9, 2002 File No. OS 027/035 FROM: Honorable Mayor and ~ Council David D. Rowlands, Jr., City Manager ., / John Lippitt, Director of Public Works fJV': Andy Trujillo, Transit coordinator~ Oral Communications - Council Meeting of August 6, 2002 TO: VIA: SUBJECT: At the Council meeting held on August 6, 2002, Council received oral communication from Mr. George Thompson, President, Amalgamated Transit Union (ATU) Local 1309. This was regarding various issues. I have paraphrased and summarized Mr. Thompson's comments (bold) with staff's response. 1. City not providing a private r09m for Union meetings. The City has never provided a private room for Union meetings. At the former Public Works yard Union meeting were held in the PW Crew Assembly room, if available. Additionally, when the Assembly room was not available Union meeting were held in a bus. This was done for many years. At the Public Works Center (PWC) we are following the same procedure allowing the use of the Assembly room, but only after work hours, reason being that City employees need to use it for breaks and meals. After work hours the Union can request use of the Assembly room or they can use a bus as they have in the past. The City administrative area is restricted to City employees only. 2. New recreation (exercise) room not accessible to Bus Operators and Mechanics. The exercise room is for City employees only. The Human Resources Department established this policy. The bus operators and mechanics are employees of the Transit Contractor. 3. Glass enclosed bulletin board. At the former public works yard, there was a glass enclosed bulletin board in the San Diego Transit (SOT) owned trailer. This bulletin board was either provided by SOT or the Union. At the PWC there is a non-enclosed bulletin board in the Transit Contractor's administrative area where the Union has been posting notices. 4. Don Maze stated to (Union) Executive Board Officer Nathan Johnson "that ATU Union was not recognized on that property" Mr. Don Maze is American Transit Corporation's (ATC) Operations Manager. Mr. Maze stated that he doesn't know who Mr. Johnson is and that in reality there is no Union representation at the present time. No labor agreement exits between ATC and ATU or any other labor Union. 5. Teamsters were allowed on property. According to RFP, ATCNANCOM was to acknowledge ATU as the collective bargaining agent. The City's Request for Proposal (RFP) does not require andlor mentions any specific collective bargaining agent. The only two places in the RFP where collective bargaining is mentioned is in the following sections: Form 6.2 - Wage and Benefit Proposal Form "Does bidder intend to have a Collective Bargaining Agreement by July 1, 2002? Section XIII. Notice of Labor Dispute and Labor Relations "CONTRACTOR shall have exclusive responsibility of conducting its labor relations including its labor contracts. .." Contractor (ATC) and I are not aware of the Teamsters being on the property (PWC), but there is nothing to exclude them from organizing ATC's employees. was informed that the Teamsters might have been at MTDB's South Bay Maintenance facility on Main Street. Mr. Thompson could have the properties confused. 6. ATC is a foreign owned company. Profits not invested in Chula Vista. I been told that ATC is a foreign (British) owned company, but so are many multinational corporations doing business in the U.S. and Chula Vista. 7. RFP's current wage is $9.00, by 2007, $10.25 RFP followed Metropolitan Transit Development Board's (MTDB) Responsible Living Wage Policy that sets the starting wage after probation at $9.00. ATC's proposal stated a wage of $9.25 per hour after probation. This is $0.25 more than MTDB's policy. Based on ATC's wage proposal wages will be $10.25 per hour by 2007. 8. ATC not bargaining by State law, not providing meal breaks and rest periods. ATC is currently in negotiations with ATU this issue could be part of a bargaining item. Additionally, the City's RFP states that "CONTRACTOR shall comply with all lawful Federal, State and Local orders, rules..." The bus operators and mechanics currently do not have any Collective Bargaining representation. This is an issue for the employees, ATC and the Union to resolve. The bus operators and mechanics are employees of the Contractor; consequently, City Of Chula Vista staff takes no active part in any phase of this management/labor issue. If you have any questions or comments, please let me know. CIlY OF CHUIA VISTA DEPARTMENT OF PUBLIC WORKS ENGINEERING DIVISION MEMORANDUM August 13,2002 File No.: 0100-55-KYI58 VIA: Honorable Mary Salas, Councilmember David D. Rowlands,'~PCity Manager TO: FROM: John Lippitt, Director of Public Works ~ SUBJECT: Sale of Fire Station No.4 to Southwestern College In about 1997 the City constructed a street widening project adjacent to Southwestern College entitled "Otay Lakes Road Dual Left Turn Lanes at E. H. Street." This project was a TDIF project done in response to previous Traffic Monitoring Plan (TMP) of the Growth Management Ordinance. The TMP runs taken in previous years for the segment of Otay Lakes Road between Telegraph Canyon Road and East H Street (north or west bound direction) indicated a strong need for dual left turn lanes on Otay Lakes Road at East H Street in order to maintain the GMOC level of service. In order to complete the widening of that intersection right-of-way was required from Southwestern College. The City had appraised the right-of-way and worked with the college administration in completing the acquisition. As part of these negotiations the College indicated that they had a use for the Fire Station site at the comer of Elmhurst and Otay Lakes Road and would like to "trade" properties. Since the City had plans to move the location of that fire station to a site in Rancho Del Rey on Paseo Ranchero and the old location was anticipated to become surplus, the idea of the trade was approved by staff and an appraisal of the Fire Station site was obtained. The appraised value for the intersection property required from the College was $188,000 and the value of the fire station site was determined to be $150,000. In order to account for the difference in the appraised values of the properties, Southwestern requested that the City (1) relocate a driveway, which would include associated parking lot and landscaping modifications, and (2) provide for the undergrounding of an SDG&E 12KV distribution line and a short segment of Cox Cable at East "H" Street. The value of the school improvements was determined to be $38,000. . On April 22, 1997 the City Council approved the tentative agreement with Southwestern College and Resolution 18640 authorized the City Manager to execute the final agreement on behalf of Honorable Mary Salas Page -2- August 13, 2002 the City. The documents finalizing the exchange were subsequently completed and the irnprovernent project was, as you are aware, constructed. The agreernent provided that the City could lease the Fire Station property at $1 per year until the station was relocated. As compensation for the value of the Fire Station, $150,000 in TransDIF fees were transferred to the Public Facilities DIF. Attached for your information is a copy of Resolution 18640 and the agreement with the College. Attachments: City Council Resolution 18640 Agreement with Southwestern College c: Honorable Mayor Horton and City Council J:\Engineer\ADMIN\Fire station four trade. doc '1- RESOLUTION NO. 18640 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A TENTATIVE AGREEMENT WITH SOUTHWESTERN COLLEGE TO EXCHANGE THE FIRE STATION NO.4 SITE AND OTHER MISCELLANEOUS WORK FOR RIGHT-OF-WAY DEDICATION FOR THE CONSTRUCTION OF THE OTAY LAKES ROAD DUAL LEFT TURN LANES PROJECT (STM- 322) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL AGREEMENT THEREOF ON BEHALF OF THE CITY WHEREAS, the FY 1996-97 Capital Improvement Program (CIP) budget contains a project to provide dual left turn lanes on Otay Lakes Road (north and south bound approaches) at East "H" Street and provide an additional through lane in each direction; and WHEREAS, to construct the project, it is necessary to obtain right-of-way from both the Sweetwater Union High School District (in front of Bonita Vista High School) and Southwestern College (in front of their vacant lot at the southwest corner of the intersection); and WHEREAS, a tentative agreement with the Sweetwater District to exchange right-of- way for the installation of a traffic signal at the high school's East H Street entrance and other miscellaneous work was approved by Council Resolution No. 18585 on February 25, 1997: and WHEREAS, the City Manager's Office has reached a tentative agreement with Southwestern College's Superintendentl President to exchange Fire Station No.4 (on Elmhurst Street) and other miscellaneous street improvements for their right-of-way; and WHEREAS, in order to complete the agreement, Council is requested to accept Southwestern College's requests and authorize the City Manager's office to finalize the agreement. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve a tentative agreement with Southwestern College to exchange the Fire Station No.4 site and other miscellaneous work for right-of-way dedication for the construction of the Otay Lakes Road dual left turn lanes project (STM-322) and authorizes the City Manager to execute the final agreement thereof on behalf of the City. Said agreement to be placed on . file in the City Clerk's Office to be known as C097-039. Presented by Approved as to form by ¡ . MJoh Lippitt zr . Direc or of Public Works '~"--"--"'T"""""-+"'-'--_. - Resolution 18640 Page 2 ..... , PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 22nd day of April, 1997, by the following vote: AYES: Councilmembers: Moot, Padilla, Rindone, Salas, and Horton NA YES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None ~~ Shir y Horton, Mayor ATTEST: ..... STATE OF CALIFORNIA COUNTY OF SAN DIEGO ss. CITY OF CHULA VISTA I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 18640 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22nd day of April, 1997. Executed this 22nd day of April, 1997. CfZ4t () (2-;-z/Üll, Beverly . Authelet, City Clerk ...... 1---- . PROPERTY EXCHANGE AND LEASE AGREEMENT [Intersection Property and Fire station property] This PROPERTY EXCHANGE AGREEMENT ("Agreement") is entered into effective as of June 18, 1997 ("Effective Date"), by and among the CITY OF CHULA VISTA, a municipal corporation ("city"), and SOUTHWESTERN COMMUNITY COLLEGE DISTRICT, a community college ("Southwestern") with reference to the following facts: A. southwestern owns certain unimproved real property located at and around the intersection of otay Lakes Road and East H Street ("Intersection"), in the City of Chula Vista, State of California, comprised of approximately 21,382 square feet, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference (the "Intersection property"). The appraised value of the Intersection Property was recently determined to be approximately $188,000. B. City desires to acquire the Intersection Property for purposes of improving the Intersection with dual left turn lanes on otay Lakes Road (north and south bound approaches) onto East "H" Street, and an additional through lane in each direction (the "Intersection project"). C. city owns certain improved real property located at the northeast corner of the intersection of Elmhurst Street and otay Lakes Road, in the city of Chula Vista¡ State of California, comprised of approximately 14,361 square feet, as more particularly described on Exhibit B attached hereto and incorporated herein by this reference (the "Fire station Property"). The appraised value of the Fire station Property was recently determined to be approximately $150,000. D. Southwestern desires to acquire the Fire station property for various school purposes (the "School Project"). E. In order to account for the difference in the appraised values of the Intersection Property and the Fire station property, Southwestern has requested that the City (1) relocate a driveway, which would include associated parking lot and landscaping modifications, as shown on Drawing No. 97-213 prepared by the City of Chula vista Engineering Division; and (2) provide for the undergrounding of an SDG&E l2KV distribution line and a short segment of Cox Cable line at East "H" street (collectively, the "School Improvements"). The value of the School Improvements has been determined to be approximately $38,000. F. city desires to continue to operate a fire station at the Fire station Property for up to three (3) years, with a one year extension in order to allow for the construction of and relocation to a new fire stàtion facility at the northwest corner of the 1 C097-¿:?'J''/ 1(/ y~~v ___-.---.-0 . _ 11 ~ ,. intersection of East H street and Paseo Ranchero in Chula vista ("New Fire Station"). G. In order for the City to obtain the Intersection Property for its intended purposes, and for Southwestern to obtain the Fire station Property for its intended purposes, the parties desire to (1) exchange the Intersection Property site for the Fire station property; (2) provide for the construction by the City of the school Improvements, and (3) lease the Fire station Property to the City until the City is able to relocate to the New Fire station, all as more specifically set forth in this Agreement, and subject to the terms and conditions hereof. NOW, THEREFORE, in consideration of the above recitals, the covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the parties hereby agree as follows: 1. Aareement to Exchanae Properties. Subject to the terms and conditions set forth herein (a) southwestern agrees to convey all of its right, title and interest in and to the Intersection Property to the City; and (b) city agrees to convey all of its right, title and interest in and to the Fire Station Property to Southwestern. City's transfer of the Fire station Property shall include any and all improvements and fixtures thereon, except for those fixtures, equipment and personal property items identified on Exhibit C attached hereto and incorporated herein by this reference, and any and all other personal property located thereon, which such items shall be retained by the City. 2. Timinq for Exchanae: Escrow. 2.1 Openina of Escrow. within three (3) business days after execution of this Agreement by both parties, Agency shall deliver a fully executed copy of this Agreement into escrow ("Escrow") with spring Mountain Escrow Company, 296 H Street, suite 201, Chula vista, Ca. 91910, ("Escrow Aaent"). The parties hereby designate, authorize and instruct Escrow Agent to act in such capacity pursuant to the terms of this Agreement. "ODenine of Escrow" shall be the date Escrow Agent receives such Agreement. Escrow Agent shall deliver written confirmation of the Opening of Escrow pursuant to the terms hereof within three (3) business days after such receipt. 2.2 Escrow Instructions. This Agreement shall constitute initial escrow instructions to Escrow Agent. The parties shall execute any additional escrow instructions reasonably required by Escrow Agent to consummate the transaction provided for herein; provided, however, such additional escrow instructions shall not 2 - modify the provisions of this Agreement, unless such instructions (a) state the modification in full, and (b) are signed by both parties. 2.3 Deliveries to Escrow. 2.3.1 Grant Deeds. Prior to Close of Escrow (a) city shall deliver to Escrow a fully executed and notarized Grant Deed in substantially the form attached hereto as Exhibit D (the "Fire station Grant Deed"); and (b) Southwestern shall deliver to Escrow a fully executed and notarized Grant Deed in sUbstantially the form attached hereto as Exhibit E (the "Intersection Grant Deed") . 2.3.2 Deliverv of Property Information. Within ten (10) days after opening of Escrow, each party agrees to deliver to the other complete copies of the following items relating to the property owned by the delivering party: (a) Copies of any existing or contemplated agreements relating to the use or maintenance of the property. (b) Copies of any existing property survey(s) within the party's possession or of which the party is aware and which is reasonably available. (c) Copies of any existing report(s) relating to the physical condition of the property within the party's possession or of which the party is aware and is reasonably available. (d) Copies of any plans, specifications or "as- builts" for improvements, including, without limitation, any reports or information regarding design or inspections related to earthquake standards. 2.3.3 Other. Prior to the Closing Date specified in section 2.4, each party shall timely deliver to Escrow all funds and documents required of such party in order to Close Escrow pursuant to the terms of this Agreement, including, but not limited to, prorated amounts and other payments required under this Agreement. 2.4 Close of Escrow. "Close of Escrow" means the date Escrow Agent records the Grant Deeds in favor of District and City, respectively. Close of Escrow shall occur on the date ("Closinq Date") no later than three (3) days after the date that (a) all conditions to Close of Escrow, as set forth in sections 2.5 and 2.6 hereof, are satisfied or waived; and (b) all funds and documents required hereunder are deposited in Escrow; but (c) in no event later than August 1, 1997, unless otherwise agreed by the parties in writing. 3 2.5 citv's conditions to Close of Escrow. Close of Escrow shall be subject to satisfaction of each of the following conditions precedent, which are for the benefit of the City: (a) Title Matters. City's approval of a Preliminary Title Report for the Intersection Property, and the commitment of the Title Insurer to issue an owner's Title Insurance POlicy for such property, in accordance with such report, in a form and with endorsements approved by City sole discretion, all as more particularly set forth in section 3 hereof, below. (b) Southwestern's Pav-off of Escrow Fees and Monetarv Liens on Intersection Propertv. Southwestern's payment into Escrow of (1) any and all required prorations, Escrow fees and costs, as provided in section 2.10 hereof; and (2) amounts necessary to reconvey any and all monetary liens against the Intersection Property, as provided in Section 2.11 hereof, below. 2.6 District's Conditions to Close of Escrow. Escrow shall be subject to satisfaction of each of the conditions precedent, which are for the benefit Southwestern: Close of following of the (a) Title Matters. Southwestern's approval of a Preliminary Title Report for the Fire station Property, and the commitment of the Title Insurer to issue an owner's Title Insurance Policy for such property, in accordance with such report, in a form and with endorsements approved by Southwestern in its reasonable discretion, all as more particularly set forth in Section 3.2 hereof, below. (b) citv's Pav-off of Escrow Fees and Monetarv Liens on Fire station Propertv. City's payment into Escrow of (1) any and all required prorations, Escrow fees and costs, as provided in sections 2.10 hereof; and (2) amounts necessary to reconvey any and all monetary liens against the Fire station Property, as provided in Section 2.11 hereof, below. 2.7. Satisfaction. Waiver of Conditions. Any party's approval, wherever required to satisfy a condition, shall be evidenced by written notice delivered to Escrow Agent (with a copy to the other party). 2.8 Diliqence: Cooperation. Each party agrees to exercise due diligence in satisfying each and every condition to Close of Escrow for which such party is responsible. Each party agrees to cooperate with the other party in satisfying those conditions to Close of Escrow for which such other party is primarily responsible. 2.9 Completion of Documents. Escrow Agent is authorized: to insert the closing Date and otherwise complete the documents 4 - deposited in Escrow, where appropriate and consistent with this Agreement. 2.10 Prorations. Escrow Fees and Costs. 2.10.1 Prorations. The following items shall be prorated in Escrow, as of the date of Close of Escrow: real estate taxes, based on the most recent information available in the office of the taxing entity. All prorations shall be made on the basis of a 30-day month and a 360-day year, unless the parties otherwise agree in writing. 2.10.2. Escrow Fees and Costs. For purposes of allocating escrow fees and closing costs: (a) city shall be deemed the "Seller" with respect to the Fire station Property and the "Buyer" with respect to the Intersection property; and (b) southwestern shall be deemed the "Seller" with respect to the Intersection Property and the "Buyer" with respect to the Fire station Property. Each party will be responsible for paying customary "Seller" and "Buyer" escrow fees and closing costs with respect to the property transfers for which they are assuming such roles. Accordingly, "Seller" in each case will pay: (1) the County Documentary Transfer Tax, in the amount Escrow Agent determines to be required by law; (2) the cost of the Title Policy described in Section 3.2; (3) one-half Escrow Agent's escrow fee (or Escrow cancellation charges, if any); and (4) all other customary Seller Escrow charges and expenses. "Buyer" in each case will pay: (a) the cost of any extended title insurance coverage; and (b) one-half of Escrow Agent's escrow fee (or Escrow cancellation charges, if any). Notwithstanding the foregoing, in the event of a default by City or Southwestern hereunder, all cancellation and other escrow charges shall be paid by the defaulting party. 2.11 Existina Encumbrances. City and Southwestern shall be responsible for payment into Escrow of any and all funds necessary to reconvey any and all monetary liens and encumbrances with respect to the Fire station Property and the Intersection Property, respectively, other than assessments and property taxes and those liens which are Permitted Exceptions pursuant to section 3.2 hereof. Escrow Agent is authorized to secure beneficiary demands and requests for reconveyance of such monetary liens, and each property shall be transferred free from such liens at Close of Escrow. 2.12 Distribution of Funds and Documents. At the Close of Escrow, Escrow Agent shall do each of the following: (a) Pavment of Encumbrances. Pay the amount of those monetary liens to be removed at Close of Escrow using the funds deposited in Escrow by the parties responsible therefor pursuant to section 2.11, above. 5 . (b) Recordation of Documents. submit to the county Recorder of San Diego County the Grant Deeds for the properties and each other document to be recorded under the terms of this Agreement, or by general usage, and, after recordation, cause the county Recorder to mail the Grant Deeds to the party acquiring rights thereunder. (c) Non-Recorded Documents. Deliver by united States mail (or hold for personal pickup, if requested): (1) the Title Policies to the insured party; each other non-recorded document received hereunder to the payee or person acquiring rights thereunder or for whose benefit said document was acquired. 3. Title Matters. 3.1 preliminarv Title Report. (a) Deliverv to Buver. As soon as possible after Opening of Escrow, Escrow Agent shall provide to each party a preliminary title report ("Preliminary Title Report") with respect to the property to be acquired thereby, issued by California Title Company, or another mutually acceptable title insurer ("Title Insurer") reflecting the status of title to such property. The Preliminary Title Reports shall be deemed received by each party on the date of personal delivery or three (3) days after mailing by Escrow Agent. (b) Time to Obiect. Each party shall have thirty (30) days, respectively, after the date of receipt of their preliminary Title Reports to notify Escrow Agent (with a copy to the other party), in writing, of its objection to the legal description or any matters indicated as exceptions in such report. (c) Time to Eliminate Exceptions. If a reviewing party objects to one or more exceptions indicated in the Preliminary Title Report, the other party may cure such objection by delivering, within ten (10) days after receipt of such objection, to Escrow Agent (with a copy to the objecting party) written agreement to eliminate such exceptiones) by the closing Date. (d) Riaht to Cancel or Perform. If the party receiving a valid objection to title does not agree to cure such objection, the objecting party shall elect one of the following, by delivering written notice to Escrow Agent (with a copy to the other party) within five (5) days after receipt of an election not to cure title or expiration of the la-day response period described in (c) above (whichever occurs first): (1) to waive its objections, take title subject to such exceptions, and proceed with Close of Escrow; or (2) to terminate this Agreement and the Escrow, in which event neither party shall have any further obligation hereunder. 6 _ ìJ IT" 3.2 Title Insurance. As of Close of Escrow, Title Insurer shall issue, or be committed to issue, at the sole cost of the "Seller" of each property, a standard form ALTA Owner's Title Insurance policy ("Title policy") insuring the acquiring party's title to the property in the amount of $150,000 with respect to the Fire station Property, and $188,000 with respect to the Intersection property, subject only to the following permitted exceptions ("Permitted Exceptions"): (a) current, non-delinquent real estate taxes and assessments; (b) the lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 of the California Revenue and Taxation Code; (c) the matters set forth in the preliminary Title Report and approved by the acquiring party pursuant to section 3.1 hereof; (d) any other matters approved in writing by the acquiring party; and (e) matters excepted or excluded from coverage by the printed terms of the Title Policy's standard form. 4. Additional Obliaations. 4.1 Access to Prot>ertv: Indemni tv. Between the date of Opening of Escrow and the Close of Escrow (or earlier termination of Escrow), upon reasonable notice, each party shall allow the other (and its designees) reasonable access to the property to be acquired thereby, for the purpose of inspecting, surveying and testing the same. In addition, during such time the City shall have the right to perform any and all work on and around the Intersection property necessary for the completion of the Intersection Project. Each party (the "Accessing Party") which so accesses the other party's property, shall indemnify, hold harmless, protect and defend the party whose property is being accessed, and the property, from and against any and all liens, claims, liability, loss, damages, costs, expenses, suits or judgments for labor performed or materials furnished to or for the Accessing Party, or for injuries to person or property damage, arising out of any accident or occurrence in any way connected with entry upon, testing or inspection of the property by the Accessing Party (or its designees). 4.2 Lease of Fire station Prot>ertv. Commencing upon Close of Escrow, and continuing for an initial term of three (3) years, Southwestern hereby leases to the City the Fire station Property, including any and all improvements, fixtures and equipment thereon not otherwise retained by city in accordance with section 1 hereof. In consideration for such lease, city shall pay to Southwestern the amount of One Dollar ($1.00) per year. City shall have the right to terminate this lease upon thirty (30) days written notice to Southwestern of its intent to do so. In the event that, for whatever reason, City, after good faith efforts, is unable to relocate its operations at the Fire station Property to the New Fire Station prior to the expiration of the lease term, upon written notice to southwestern, city shall have the right to extend the lease term for one additional year on the same terms and 7 .----- ___ n conditions contained in this section; provided, however, City shall be obligated to pay Southwestern rent at the then fair market value of the property. In the event that the parties are unable to mutually agree on the fair market value rent, the matter shall be submitted to binding arbitration in San Diego County. Such arbitration shall be conducted in accordance with rules promulgated by the American Arbitration Association. upon expiration of the term, city shall have the right to remove from the leased premises any and all fixtures and equipment not transferred with the Fire station Property to Southwestern, including, without limitation the items described on Exhibit C, attached hereto and incorporated herein by this reference. 4.3 Construction of School Improvements. city agrees to cause the completion of the School Improvements in accordance with improvement plans reasonably approved by Southwestern. The driveway relocation improvements shall be completed by no later than June 30, 1998. The utility undergrounding improvements shall be completed by no later than June 30, 1998. 5. Representations and Warranties. 5.1 represents Agreement, In General. Each party, with respect to itself, agrees, and warrants as of the date of execution of this and as of Close of Escrow, as follows: (a) Authoritv. Such party has full legal right, power and authority to execute and fully perform its obligations under this Agreement, without the need for any further action; and the persons executing this Agreement and other documents required hereunder on behalf of such party are the duly designated agents thereof and are authorized to do so. (b) Investiaation of Propertv. Where a party is acquiring property hereunder (an "Acquiring Party"), with respect to the property being acquired thereby, the Acquiring Party will make an independent investigation, to the extent such party deems necessary or appropriate, concerning the physical condition (including the existence of hazardous materials), value, development, use, marketability, feasibility and suitability of the property, including (but not limited to) land use, zoning and other governmental restrictions and requirements. Acquiring Party is acquiring the property "AS IS," in its present state and condition solely in reliance upon Acquiring Party's own investigation, and no representations or warranties of any kind, express or implied, have been made by the party conveying the property (a "conveying Party"), or its representatives, except as expressly set forth in this Agreement. Each Acquiring Party unconditionally releases each conveying Party from and against any and all liability to Acquiring Party, both known and unknown, present and future, for any and all damages, losses, claims and costs (including attorneys fees), arising from the physical condition of the property being acquired 8 . -, thereby (including, without limitation, the existence of hazardous materials), or the property's non-suitability for Acquiring Party's intended use. With respect to this section 5.l(b) each Acquiring Party waives the provisions of California civil Code section 1542 which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release which if known by him must have materially affected his settlement with the debtor." (c) Real Estate Commissions. No brokers or finders have been employed or are entitled to a commission or compensation in connection with this transaction. Each party agrees to indemnify, protect, hold harmless and defend the other party from and against any obligation or liability to pay any such commission or compensation arising from the act or agreement of the indemnifying party. 5.2 Survival of Warranties. The representations and warranties given by each party in this section 5, and all obligations to be performed under the terms of this Agreement after Close of Escrow, shall survive the Close of Escrow and delivery of the Grant Deed to the Acquiring Party. 6. General Provisions. 6.1 Assiqnment. No party may assign this Agreement or any of its rights hereunder without the prior written consent of the other party which consent shall not be unreasonably withheld. Any purported assignment which has not been consented to by Seller as provided hereunder shall be null and void. 6.2 Attornevs' Fees. If either party commences legal proceedings for any relief against the other party arising out of this Agreement, the losing party shall pay the prevailing party's legal costs and expenses, including, but not limited to, reasonable attorneys' fees and costs as determined by the court. The prevailing party shall be that party receiving substantially the relief sought in the proceeding, whether brought to final judgment or not. 6.3 Computation of Time Periods. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and state or national holidays, unless the period of time specifies business days, provided that if the date or last date to perform any act or give any notice or approval shall fall on a Saturday, sunday or state or national holiday, such act or notice may be timely performed or given on the next succeeding day which is not a Saturday, sunday or state or national holiday. 6.4 Counterparts. This Agreement or any escrow instructions pursuant to this Agreement may be executed in multiple copies, each of which shall be deemed an original, but all of which shall 9 constitute one Agreement after each party has signed such a counterpart. 6.5 Entire Aareement. This Agreement, together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire agreement between the parties with respect to the subject matter hereof. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 6.6 Exhibits. All exhibits referred to herein are attached hereto and incorporated herein by reference. 6.7 Further Assurances. The parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the parties. 6.8 Governina Law. This Agreement shall be governed, interpreted, construed and enforced in accordance with the laws of the state of California. 6.9 Headinas. The captions and paragraph headings used in this Agreement are inserted for convenience of reference only and are not intended to define, limit or affect the construction or interpretation of any term or provision hereof. 6.10 Modification. Waiver. No modification, waiver, amendment or discharge of this Agreement shall be valid unless the same is in writing and signed by both Buyer and Seller. The escrow instructions shall be considered a part of this Agreement, and no provision in said escrow instructions shall supersede or contradict the provisions of this Agreement, unless the parties agree in writing to such change. 6.11 Notice. Notice to either party shall be in writing and either personally delivered or sent by certified mail, postage prepaid, return receipt requested, addressed to the party to be notified at the address specified herein. Any such notice shall be deemed received on the date of personal delivery to the party (or such party's authorized representative) or three (3) business days after deposit in the U.S. Mail, as the case may be. city Address for Notice: Southwestern Address for Notice: 276 Fourth Avenue Chula vista, CA 91910 Attn: city Engineer and city Attorney 900 otay Lakes Road Chula Vista, CA 91910 Attn: John Wilson, Director of Business and Operations Either party may .change its address for notice by delivering written notice to the other party as provided herein. 10 6~ 12 Severability. If any term, provision, covenant or condition of this Agreement is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term, provision, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 6.13 Successors. All terms of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective heirs, legal representatives, successors, and assigns. 6.14 1irng. Time is of the essence of each provision of this Agreement, including without limitation all time deadlines for satisfying conditions and Close of Escrow. [NEXT PAGE IS SIGNATURE PAGE] 11 [SIGNATURE PAGE TO PROPERTY EXCHANGE AND LEASE AGREEMENT] IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first written above. CITY: CHULA VISTA, a municipal n ATT APPROVED AS TO FORM Jo ci SOUTHWESTERN: SOUTHWESTERN DISTRICT COMMUNITY COLLEGE By: .~t.~ Serafin Zasueta, Superintendent/President [print Name and Title] r If/fUll vi ~~/{£c By: h:\HOME\ATTORNEY\GlEN\PROPXFER.SW Marcie E. Sinclair, Esq. [Print Name and Title] Special Assistant to the Superintendent/ President for Human Resources & Legal Affairs 12 ----. . INFORMATION ITEM MEMORANDUM August 12, 2002 VIA: The Honorable Mayor and City Council David D. Rowlands, City ~ager TO: SUBJECT: Kids Included Together (KIT) Gran FROM: Buck Martin, Director of Recreati n The City of Chula Vista Recreation Department's Therapeutics Section has applied for a sustaining grant of $6,000 from a non-profit organization in San Diego. Kids Included Together (KIT). Incidentally, a grant for $5,000 from KIT was awarded to the City last year. The current grant, if awarded. will provide up to $6,000 for the 2002-2003 school year to assist the Recreation Department in meeting the legal obligation for inclusion purposes. In addition, the citizens of Chula Vista enrolled in recreotion programs will also experience the benefits of inclusive programming. Currently, a Recreation Supervisor II who is a Certified Therapeutic Recreation Specialist (CTRS) provides assessments of children with disabilities. Recreation staff can provide and ensure a safe recreation environment for the child with disabilities. and participation is made possible in any recreation program, regardless of their disability. Inclusion Programming is a provision that is required by law under the Americans with Disabilities Act (ADA). Coincidentally. meeting the Inclusion provision continues to have a potential large impact on Recreation programming and staffing. In the past. the Therapeutics section assisted children with disabilities who, in the past. were not included in mainstream swim, camp and tiny tot programs. This required an individual ossessment of each participant requesting inclusion, the development of an individual recreation plan for the child, and often, one-on-one attention during the program by a trained inclusion aid. This grant requires its recipients to attend trainings on inclusion and submit reports on participation and how the funds are utilized. KIT invites organizations to apply for up to four years of grant funding. The Recreation Department will refurn to Council to request acceptance and appropriation of grant funds if awarded. cc: Sunny Shy Shauna Stokes David Palmer Carmel Wilson