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HomeMy WebLinkAboutReso 1987-12935 RESOLUTION NO. 12935 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SECURITY AGREEMENT FOR CONSTRUCTION OF "H" STREET BETWEEN THE CITY OF CHULA VISTA AND EASTLAKE DEVELOPMENT COMPANY AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The City Council of the City of Chula Vista does hereby resolve as follows: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that that certain security agreement between THE CITY OF CHULA VISTA, a municipal corporation, and EASTLAKE DEVELOPMENT COMPANY for construction of "H" Street dated the 10th day of March , 1987, a copy of which is attached hereto and incorporated herein, the same as though fully set forth herein be, and the same is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista be, and he is hereby authorized and directed to execute said agree~nent for and on behalf of the City of Chula Vista. Presented by Approved as to form by J~hn P. Lipp%tt, Director of D. Richard Rudolf, A~_~istant Public Works/City Engineer City Attorney 2650a ADOPTED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this lOth day of March ..... 19 87 , by the following vote, to-wit: AYES: Councilmembers Cox, Moore, Nader, Malcolm, McCandliss NAYES: Council members None ABSTAIN: Counci 1 members None ABSENT: Councilmembers None Mayo o~the City of Chula Vista STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, DO HEREBY CERTIFY that the above and foregoing is o full, true and correct copy of RESOLUTION NO. 12935 ,and that the same has not been amendedor repealed. DATE D ~'"~'-~ City Clerk Cl'h' OF CHUtA VISIA CC-660 SECURITY AGREEMENT FOR CONSTRUCTION OF "H" STREET RECITALS Whereas the City of Chula Vista and EastLake Development Company (hereinafter "EastLake" and "City") have previously entered into a Development Agreement pursuant to the authority set forth in Government Code section 55864 et. seq., dated February 26, 1985; and Whereas pursuant to said Development Agreement in Section 6 with respect to Urban Infrastructure EastLake has agreed that building permits may be withheld where improvements described in the EastLake Public Facility Financing Plan dated February 7, 1985 required for a particular stage of development have not been financed and either constructed or under construction at the time that such improvements are scheduled for completion; and Whereas one such improvement consists of the addition of two travel lanes to East "H" Street between Otay Lakes Road and Interstate 805; and Whereas the Public Facility Financing Plan allocates the obligation for design and construction of the lane improvements as the responsiblity of another developer or an obligation that EastLake may undertake in conjunction with reimbursement by others; and Whereas EastLake desires to post security for the completion of two travel lanes of East H Street in the areas noted in the amount of One Million One Hundred Eighty-Six Thousand One Hundred Twenty Dollars ($1,186,120.00) to assure in accordance with the 02/13/87 terms and conditions of the Development Agreement that the required construction has been financed; and Whereas the City of Chula Vista acknowledges that pursuant to Section 6.2.4 of the EastLake Development Agreement EastLake has the option but not the obligation to install facilities mandated upon other development projects and further the city has agreed to coordinate the imposition of conditions upon other projects so that the referenced road improvements can be constructed in accordance with the phasing plan set forth in the Facility Financing Plan; and Whereas, the City has agreed to enter into a separate agree- ment with EastLake, acknowledging EastLake's right of reimburse- ment to the extent that the facility constructed by EastLake is not reasonably necessary to serve the public need created by EastLake's project; Now therefore the undersigned agree as follows: 1. Recitals set forth hereinabove are true and correct and incorporated as part of this agreement. 2. EastLake agrees that it will post a supply bond in such form as customarily required by City to secure the completion of public improvements required for two additional travel lanes and other appurtenant improvements East Otay for H Street between Lakes Road and 1-805 in an amount not to exceed the sum of One Million One Hundred Eighty-Six Thousand One Hundred Twenty Dollars ($1,186,120.00), subject to the terms and conditions contained herein. 2 02/13/87 3. The proceeds of such bond shall be, pursuant to the terms and conditions of such bond be available to the City of Chula Vista in the event that McMillin (or the proponent of the Rancho del Rey development project) and EastLake fails within thirty days following completion of the grading of East H Street between Otay Lakes Road and 1-805 to commence and pursue dili- gently to completion the addition of two travel lanes to East H Street; excepting that: A. The security posted by EastLake shall be released upon request of EastLake following: 1.) the posting equivalent security by McMillin for the completion of the travel way improvements to East H Street together with the commencement of construction of said improvements for two travel lanes, or, 2.) the issuance of a contract by the City of Chula Vista for the completion of the travel ways funded by such funding source as the City may agree to pursuant to those available pursuant to Government Code Section 53179(b), or any other similar funding mechanism. Such funding mechanism shall not include any general fund expenditure by the City of Chula Vista. B. City may not proceed against nor is entitled to any bond proceeds during the existence of any force majeure delay including but not limited to delays occasioned by labor disputes, fire, unusual delay in transportation, adverse weather conditions not reasonably anticipated, unavoidable casualties or similar causes beyond EastLake or the contractor's control or the failure of the City to issue, process or complete processing of improve- ment plans for the travel lanes for East H Street. 3 02/13/87 C. City shall, prior to any action against the supply bond notify EastLake no less than 30 days in advance of any action of City's intention to proceed against the bond posted. D. Any other term or condition available to the issuer of any performance bond in favor of the City of Chula Vista, shall enure to the benefit of EastLake pursuant to this Agreement. 4. Satisfaction of the conditions set forth herein shall be deemed EastLake's satisfaction of the obligations and construc- tion required pursuant to Stage lA of the Public Facility Financing Plan, and the Development Agreement. 5. City shall, if it proceeds against any performance bond posted by EastLake, upon EastLake's request, enter into a sepa- rate reimbursement agreement with EastLake acknowledging EastLake's right to reimbursement for the total amount of any security drawn upon to complete the H Street travel lanes. Any reimbursement shall be in accordance with the terms and condi- tions of any applicable city ordinance with respect to reimburse- ment for "pioneered" or excessive size or capacity facilities, the reimbursement provisions of Chapter 1.5 of Part One of Division two of Title Five of the Government Code commencing with Section 53175., known as the "Integrated Financing Act," or any other similar statute providing for reimbursement of a developer providing public improvements. City agreees that it will in conjunction with any reimbursement agreement, impose conditions upon the development of lands adjacent to H Street, where 02/13/87 feasible, so that lands deriving benefit from the enhancement of the facility shall, as a condition to development, reimburse EastLake. City agrees that this obligation may be satisfied by author- izing the imposition of an assessment district, facility financ- ing district or other method of public debt financing to reim- burse directly or indirectly EastLake for EastLake's financial contribution towards the improvements of H Street. 6. Waiver. Except as otherwise expressly provided in this agreement any failure or delay by a party in asserting any of its rights or remedies as to any default by the other party will not operate as a waiver of any default or any rights or remedies or deprive such parties to its right to institute and maintain any actions or proceeding which it may be deemed necessary. 7. Notices. All notices required or provided for under this agreement shall be in writing and delivered in person or sent by certified mail, post prepaid, return receipt requested to the principle offices of the City and EastLake Development Company. Notices shall be effective upon the date delivered in person. Notices to EastLake Development Company: Attn: Robert L. Santos EastLake Development Company 701 B Street Suite 730 San Diego, California 92101 Notice to City: City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 5 02/13/87 8. Assignment. Developer may transfer its rights and obli- gations under this agreement if such transfer assignment is made as a part of any transfer assignment sale or lease of all or a portion of EastLake's property ownership and the city consents to said transfer. 9. Severability. If any major material provision of this Agreement is held invalid this Agreement will be automatically terminated unless within fifteen days after such provision is held invalid the party holding rights under the invalided portion affirms the balance of this Agreement in writing. 10. Effective Date. This Agreement shall be effective upon its execution by EastLake Developement Company, its approval by the City Council of the City of Chula Vista and the City issuance of building permits no later than March 11, 1987 for residential construction of residential structures to the limits proscribed by Stage iA of the EastLake 1, Public Facilities Financing Plan. This Agreement is made March 10, 1986. By: City of Chula Vista, Municipal Corporation Developer: EastLake Development Company BY:Robert L. Santos, Senior Vice President R04CKB046 6 02/13/87