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HomeMy WebLinkAboutAgenda Packet 2003/01/14CITY COUNCIL AGENDA January 14, 2003 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CI'IY OF CHUIA VISI'A City Council Patty Davis John McCann Jerry R. Rindone Mary Salas Stephen C. Padilla, Mayor City Manager David D. Rowlands, Jr. City Attorney John M. Kaheny City Clerk 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 January 14, 2003 6:00 P.M. CALL TO ORDER ROLL CALL: Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO AL SORENSEN UPON HIS RETIREMENT FROM SWEETWATER AUTHORITY AFTER 25 YEARS OF SERVICE PRESENTATION BY ASSISTANT CITY MANAGER POWELL OF THE NATIONAL PURCHASING INSTITUTE'S ACHIEVEMENT OF EXCELLENCE IN PROCUREMENT AWARD TO PURCHASING AGENT COGGINS AND PURCHASING DIVISION STAFF CONSENT CALENDAR (Items 1 through 6) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councibnember, 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 Items. Iterns pulled by the public will be the first items of business. 1. APPROVAL OF M1NUTES of December 17, 2002 and January 7, 2003. Staffrecommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS Letter of resignation from John Liken, member of the Growth Management Oversight Commission. Staffrecommendation: Council accept the resignation and direct the City Clerk to post immediately according to Maddy Act requirements. Letter from Alya V. Ali, a Chula Vista resident and eleventh grade student at Castle Park High School, requesting financial assistance to attend the 2003 Youth Leadership Conference at Freedoms Foundation at Valley Forge, Pennsylvania and Washington D.C. Staff recommendation: Council grant $50 from the Council Contingency Account to Alya V. Ali toward expenses incurred for her attendance at the 2003 Youth Leadership Conference. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $53,705 IN THE TOWN CENTRE LANDSCAPE MAINTENANCE DISTRICT FUND (FUND 351) FOR ELIGIBLE LANDSCAPE MAINTENANCE ACTIVITIES (4/5THS VOTE REQUIRED) The Downtown Property and Business Improvement District (PBID), formed by a vote of downtown property owners in 2001, came into effect on January 1, 2002. The activities formerly carried out by the Town Centre Landscape Maintenance District were incorporated into the new PBID. Adoption of the resolution enables the City to use the remaining funds collected for the Landscape Maintenance District to enhance the landscaping contained within the original district boundaries. (Director of Engineering) Staffrecommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING CITY'S INTENTION TO UNDERGROUND OVERHEAD UTILITIES ALONG EAST "J" STREET FROM EAST OF LORI LANE TO HILLTOP DRIVE, AND SETTING A PUBLIC HEARING FOR THE FORMATION OF UTILITY UNDERGROUND DISTRICT NUMBER 138 FOR FEBRUARY 11, 2003 AT 6:00 P.M. On November 12, 1991, the Council approved Resolution No. 16415, accepting a report on the City's utility undergrounding conversion program and approving a revised list of utility underground conversion projects. On November I, 2002, an Underground Utility Advisory Committee meeting was held at the site to determine the proposed boundary of an underground utility district for the conversion of existing overhead utilities. The district's limits extend along East "J" Street, from east of Lori Lane to Hilltop Drive. (Director of Engineering) Staffrecommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A PURCHASE AGREEMENT IN THE AMOUNT OF $310,564.68 FOR TWELVE REPLACEMENT POLICE PURSUIT SEDANS TO VILLA FORD, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CITY OF SAN DIEGO COOPERATIVE BID NO. A3044/00 The fiscal year 2002/2003 equipment maintenance budget provides for the replacement of 12 police pursuit sedans. Municipal Code Section 22.56.140 and Council Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage. The City has an opportunity to participate in a current City of San Diego bid for favorable terms and pricing. (Director of Public Works Operations) Staff recommendation: Council adopt the resolution. Page 2 - Council Agenda 01/14/03 RESOLUTION OF THE CHULA VISTA CITY COUNCIL APPROVING A TWO- PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND ECONOMICS RESEARCH ASSOCIATES FOR FINANCIAL CONSULTiNG SERVICES TO PREPARE MODELS AND FISCAL IMPACT ANALYSES FOR THE CITY'S GENERAL PLAN UPDATE, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT In November 2001, the Council approved an overall work program and budget for the two-plus-year General Plan update project. Included in that work program and budget were the preparation of several studies to be done by consultants, including the preparation of a fiscal impact analysis (FIA). A request for proposals was issued, and a competitive selection process was conducted to choose a consultant to prepare the fiscal impact analysis. The City's selection committee chose Economics Research Associates (ERA) to complete the work for a cost of $89,895. The proposed FIA contract includes the preparation of a customized fiscal impact model and the analysis and presentation of the fiscal impacts of various General Plan land use and policy alternatives. (Director of Planning and Building) Staff recommendation: Council adopt the resolution. ORAL COMMUNICATIONS Persons speaking during Oral Communications may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law 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. CONSIDERATION OF APPROVAL OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 08-1 (OTAY RANCH VILLAGE SIX) AND AUTHORIZATION TO LEVY SPECIAL TAXES AND TO 1NCUR A BONDED INDEBTEDNESS SECURED BY SUCH SPECIAL TAXES Community Facilities District (CFD) 08-I will fund the construction of public facilities, such as roadways, for the Otay project. In addition, a portion of the proceeds may be authorized to be used for certain transportation projects as directed by the City. Adoption of the resolutions continues the formal proceedings leading to the establishment of CFD 08-1 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 Engineering) Staff recommendation: Council conduct the public hearing and adopt the following resolutions: Page 3 - CouncilAgenda 01/14/03 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 08-1 (OTAY RANCH VILLAGE SIX), AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN SUCH COMMUNITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOF RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING NECESSITY TO INCUR BONDED iNDEBTEDNESS FOR COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX), SUBMITTING TO THE QUALIFIED ELECTORS OF SUCH COMMUNITY FACILITIES DISTRICT SEPARATE PROPOSITIONS TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, TO AUTHORIZE SUCH COMMUNITY FACILITIES DISTRICT TO INCUR A BONDED iNDEBTEDNESS SECURED BY THE LEVY OF SUCH SPECIAL TAX TO F1NANCE CERTAIN TYPES OF PUBLIC FACILITIES, AND TO ESTABLISH AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT, AND GIVING NOTICE THEREON CONSIDERATION OF APPROVAL TO MODIFY THE TYPES OF PUBLIC FACILITIES AUTHORIZED TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILL1N-OTAY RANCH -VILLAGE SIX) (CONTINUED FROM THE MEETING OF JANUARY 7, 2003) On November 26, 200, the Council approved the intention to consider modification to the types of public facilities authorized to be financed by Community Facilities District No. 2001-2. Adoption of the resolution continues the formal proceedings leading to the modification of the types of public facilities authorized to be financed by Community Facilities District No. 2001-2, snbject to the approval of the qualified electors. (Director of Engineering) Staff recommendation: Council conduct the public heating and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTiNG iN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX), MAK1NG CERTAIN DETERMINATIONS AND AUTHORIZING THE SUBMITTAL OF THE PROPOSED MODIFICATIONS TO THE FACILITIES AUTHORIZED TO BE FINANCED BY SUCH COMMUNITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS CONSIDERATION OF APPROVAL OF A REQUEST BY ACI SUNBOW TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE CITY OF CHULA VISTA WHICH WOULD ALLOW THEM TO VEST THEIR ENTITLEMENTS FOR INDUSTRIAL DEVELOPMENT ON PROPERTY 1N THE SUNBOW DEVELOPMENT, LOCATED SOUTH OF OLYMMPIC PARKWAY AND EAST OF BRANDYWINE AVENUE (PCM-03-17) Page 4 - Council Agenda 01/14/03 Adoption of the ordinance approves a development agreement with ACI Sunbow, LLC, allowing them to vest their entitlements for industrial development on property in the Sunbow Development. (Director of Planning and Building) Staff recommendation: Council conduct the public heating and place the following ordinance on first reading: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND ACI SUNBOW, LLC, FOR INDUSTRIAL PARK LAND WITHIN THE SUNBOW DEVELOPMENT 10. CONSIDERATION OF APPROVAL OF A TENTATIVE SUBDIVISION MAP (PCS- 99-05) TO DEVELOP FIVE LOTS FOR SINGLE-FAMILY HOMES AT 387 DATE STREET (APPLICANT: JAMES HURRELL) The developer requests approval for a five-lot subdivision known as Park View Estates, located at the southerly end of Date Street. The project site is located in an existing single-family residential (R-1-5-P) zone, with a Montgomery Specific Plan land use designation of low/medium density residential (6 - 11 dwelling units per acre), and a General Plan land use designation of low medium residential (6 11 dwelling units per acre). (Director of Plauning and Building) Staff recommendation: Council conduct the public heating and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE MITIGATED NEGATIVE DECLARATION AND APPROVING A TENTATIVE SUBDIVISION MAP FOR THE PARK VIEW ESTATES, A 0.99-ACRE, FIVE LOT SUBDIVISION FOR SINGLE-FAMILY DWELLING UNITS, LOCATED AT 387 DATE STREET, CHULA VISTA ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 11. CITY MANAGER'S REPORTS · Scheduling of meetings. 12. MAYOR'S REPORTS Ratification of appointment of Dr. Floyd L. Wergeland, Jr. to the Nature Center Board of Trustees as the Friends of the Chula Vista Nature Center representative. 13. COUNCIL COMMENTS Page 5 - CouncilAgenda 01/14/03 CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Clerk's office in accordance with the Ralph M. Brown Act (Government Code 54957. 7). 14. PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54954.5 (e) · Performance Evaluation for City Manager 15. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) City of Chula Vista v. Bamhart Contracting (San Diego Superior Court Case No. GIS 003859) Grippi v. City of Chula Vista, et al. (San Diego Superior Court Case No. GIC 801393) Moore v. City of Chula Vista, et al. (South Bay Superior Court Case No: GIS 008943) ADJOURNMENT to the Regular Meeting of January 21, 2003, at 6:00 p.m. in the Council Chambers. Page 6 - Council Agenda 01/14/03 Spe(!lcd Orders INTEROFFICE MEMORANDUM Date: January 6, 2003 To: Susan Bigelow, City Clerk Via: Donna Norris, Deputy City Clerk Robert W. Powell, Assistant City Manager P From: Subject: Achievement of Excellence in Procurement Award I would like the opportunity to recognize the Purchasing Agent and the Purchasing Division at an upcoming Council meeting for a national award that they recently received. The National Purchasing Institute administers a program designed to recognize the achievement of organizational excellence in public procurement. In addition to the National Purchasing Institute, the achievement program is also sponsored by the Institute for Supply Management and the California Association of Public Purchasing Officers. The award is achieved by only those organizations that demonstrate excellence in procurement by obtaining a qualifying score against standardized rating criteria designed to measure innovation, professionalism, productivity, and leadership attributes. Chula Vista was one of only eight cities in California and thirty-two nationwide to receive this award for the fiscal year ending June 30, 2002. Obviously, I am extremely proud of this achievement and welcome the opportunity to share my pride with the Council and the citizens we serve. c: Mayor and Council City Manager RECEIYE~ January 8, 2003 ~ dH -8 P5:12 Honorable Stephen Padilla, Mayor 276 Fourth Avenue Chula Vista, CA 91910 CiTY OF ~TY CLERK'S ~FIC~ Dear Mayor Padilla It is with great regret that I must resign from my position on the Growth Management Oversight Commission. ! recently took a new position as a career move, and find myself unable to devote the time that the Commission deserves. I appreciate the opportunity that you have given me, and should my schedule change in the future, I look forward to further service to this great city that we call home. Sincerely, John Liken Memo RECEtVgD All :00 Ct't'¢¥ .~, OH;_iLA ',/!SE '. ~ITY ~LERK'S OH-=K :: To: Susan Bigelow, City Clerk From; Donna Vignapiano, Assistant to the Mayor Date: December 23, 2002 Re: Letter from Alya V. Ali Alya V. Ali, a Chula Vista resident and 11th grade student from Castle Park High School, has requested financial assistance to attend the 2003 Youth Leadership Conference at Freedoms Foundation at Valley Forge, Pennsylvania and Washington D.C. Staff recommendation: That $50 from the Council Contingency Account (7091) be granted to Alya V. Ali toward expenses incurred for her attendance at the 2003 Youth Leadership Conference. Please place this item on the next City Council agenda for their consideration. dv 1475 Helix Way Chula Vista, CA 91911-5213 December 13, 2002 City of Chula Vista 276 Fourth Ave Chula Vista, CA, 91910 RECEIVED 1~ I]F.13 19 P3~3 CITY ~ O~L~ V!b, r, ~ITY OLE~'S OFFICE Dear Members of the City of Chula Vista, I am one of twenty-eight high school students recently selected to attend the 2003 Youth Leadership Conference at Freedoms Foundation at Valley Forge, Pennsylvania and Washington D.C. The mission of Freedoms Foundation at Valley Forge is: To impart to Americans - particularly young Americans- an understanding of and commitment to our national heritage, the basic values upon which this nation was built, the free enterprise system, and responsible citizenship. The conference on the Valley Forge campus will include meetings with prominent historians, educators, journalists, and economists. There will also be tours of historic Philadelphia before we travel to Washington, D.C to meet legislators and visit important national historic sites. I am a junior at Castle Park High School. My school activities include: · Academic Achiever · ASB, Associated Student Body- Assistant Tribune of Art and Publicity · CSF Club Member · Full International Baccalaureate Candidate · Images, Literary Magazine- StaffArtist · Octagon Club Member · Varsity Swim Team I am enrolled in seven classes and have a 4.43 GPA. The San Diego County Chapter of Freedoms Foundation at Valley Forge organizes, sponsors, and underwrites a significant portion of the cost trip. We students are asked to find financial sponsors within our community who support youth programs. I need to raise a total of $700 by February 1, 2003. I hope that you will consider helping me achieve this goal. To show my appreciation for your sponsorship, I would be happy to provide a program on the conference and Freedoms Foundation at Valley Forge for one of your meetings. Please call me at (619) 422-4476 or Adele Lancaster, Vice President of Youth, at (858) 292-0503 if you need more information. Checks must be made out to FFVF, San Diego County Chapter with my name noted in the memo and mailed to me at the address given below. Any amount donated will be tax deductible and greatly appreciated. Thank you so much for considering sponsoring me on this wonderful and exciting learning opportunity. Sincerely, Alya V. Ali 1475 Helix Way Chula Vista, CA 91911-5213 (619) 422-4476 COUNCIL AGENDA STATEMENT Item ~ ~ Meeting Date 1/14/03 ITEM TITLE: SUBMITTED BY: REVIEWED BY: Resolution Appropriating $53,705 in the Town Centre Landscape Maintenance District Fund (Fund 351) for Eligible Landscape Maintenance Activities Director of Engineering~) Community Developme'-nt Director City Manager ~0 (4/5ths Vote: Yes X No ) ~lhe Downtown Property and Business Improvement District (PBID), formed by a vote of downtown property owners in 2001, came into effect on January 1, 2002. The activities formerly carded out by the existing Town Centre Landscape Maintenance District (LMD) were incorporated into the new PBID. This action will enable the City to use the remaining funds collected for the LMD to enhance the landscaping contained within the original District boundaries. RECOMMENDATION: That Council approve the Resolution appropriating $53,705 in the Town Centre Landscape Maintenance District Fund (Fund 351). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On July 24, 2001 Council held a public meeting and tabulated ballots for the establishment of the Downtown Property and Business Improvement District. Since the majority of the weighted vote was in favor, Resolution 2001-232 was enacted to establish the district. The BID was authorized for a five-year period as stipulated by California Streets and Highways Code Section 36625. Resolution 2001-236 was also adopted, declaring the intent to initiate dissolution proceedings for the Town Centre Maintenance District. The annual assessment for the PBID was placed on the tax roll for Fiscal Year 2001-02. Since revenues from the tax roll are generally not received by the City until mid-year, the PBID did not take effect until January 2002. During the first half of the fiscal year, the fund balance of the existing maintenance district was used to maintain those properties within the original LMD boundaries. Since the LMD was still in operation in July 2001, the final fund balance was not known. The current balance in the Town Centre LMD Fund (Fund 351) is $53,705. However, since the LMD would not technically be in operation during Fiscal Year 2002-03, no money was appropriated into this fund for this fiscal year. The appropriation of $53,705 in the Town Centre Landscape Fund (35100) ~vill provide for the following: 1) Reimburse the General Fund $8,460 for costs associated with the old district, primarily back payments for electricity during the period of July 2000 through December 200 I; 2) Legal and administrative costs of $5,000 which have not yet been paid; and 3) Remaining funds of approximately $40,245 to be utilized for landscape maintenance and upgrades within the LMD boundaries along Third Avenue between E and G Streets. Page 2, Item ~ Meeting Date 1/14/03 Identified use of the remaining funds will be devoted to the following purposes: replacement and repair of street benches, trash receptacles, and flower boxes; irrigation repairs; landscape materials; and related eligible costs. Given the City's efforts to secure funding for additional, long-range improvements to the downtown streetscape, other more extensive repairs or replacement of landscape materials and hardscape will be deferred until a master plan is prepared for the improvement of Third Avenue. Issues Regarding LMD Dissolution It was previously envisioned that the LMD would be dissolved after the new BID was' formed and all expenses associated with the LMD had been determined. Therefore, Resolution 2001-236 was adopted in order to begin the dissolution process and maximum rates for the LMD were not adopted in Fiscal Years 2001-02 and 2002-03. However, in reevaluating the impacts of dissolving the LMD, it was determined that there is some potential long-term exposure for the city based on the remote possibility that the current PBID might not receive sufficient support for re-approval in 2006 for its next 5 year period. Should the PBID not be re- approved, and the LMD is dissolved, there would no longer be a funding mechanism for downtown Iandscape maintenance. Based on this possibility, the Town Centre LMD will be kept open as a "ghost" district. This means that the City will set the maximum Assessment Amount for the District on an annual basis, even though property owners will not be billed anything on the tax roll. This appropriation would cover the entire balance remaining in Fund 351. The Assessment Amount for Fiscal Year 2003-04 would be based on the last approved Assessment Amount for this district, which was $0.098688 per square foot of parcel area as adopted for Fiscal Year 2000-01. (This would have resulted in a maximum revenue of $50,588.65.) Annual cost of living increases to the LMD rate would be included in the two annual Open Space District agenda statements in May and July each year. The July public hearing would be noticed in the Star News. Staff will meet with the property owners and the Town Centre BID board to inform them about this process. FISCAL IMPACT: Passage of this resolution will allow the $53,705 balance in the Town Centre LMD Fund (Fund 351) to be used for the maintenance and enhancement of landscaping within the existing district boundaries. No other direct fiscal impacts are anticipated with this action. Exhibits: A. B. Resolution 2001-232 Resolution 2001-236 J:\ENGINEER\AGENDA\TOWN CENTRE LMD APPROPRIATION2,DOC RESOLUTION NO. 2001-232 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHLrLA VISTA DECLARING THE RESULTS OF THE ASSESSMENT BALLOT TABULATION, CONFIRMING THE -DIAGRAM AND ASSESSMENT, PROVIDING FOR THE LEVY OF THE ANNUAL ASSESSMENT; AND ESTABLISHING THE DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS IMPROVEMENT DISTRICT (PB1D) PURSUANT TO THE PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 WHEREAS, the Property and Business Improvement District Law of 1994 (California Streets and Highway Code Section 33600 e_t se~.)(the "PBID Law") authorizes the City of Chula Vista to form one or more property based business improvement districts ( a "PBID") within Chula Vista; and WHEREAS, on June 5, 2001, the City Council adopted Resolution No. 2001-175 entitled Resolution of Intention of the City Council of the City of Chula Vista to Form a Business Improvement District Pursuant to the Property and Business Improvement District Law of 1994; and WHEREAS, the PBID will be located in downtown Chula Vista and will include the area fi.om E Street to I Street and from Church Avenue to Landis Avenue; and WHEREAS, the services to be provided in the PBID will include economic development, marketing and parking management; district wide maintenance; and Third Avenue enhanced maintenance; and WHEREAS, the services to be provided in the PBD. will be funded by a levy of assessments which assessments shall be used for the purposes specified in the PBD management plan; and WHEREAS, the estimated costs for the first year of operation of the PBID will be approximately Ihree Hundred and Three Thousand Two Hundred Eighty Five Dollars ($303,285) which cost may be increased in future years a max/mum of five percent (5%) annually; WHEREAS, a more detailed description of the location, services and costs of operation of the proposed PBID are set forth in the management plan on file with the City Clerk and incorporated in this Resolution by this reference (the "PBID Management Plan"); and WHEREAS, each record owner within the boundaries of the PBD received an assessment ballot with which the owner could vote his or her support or opposition to the PBID; and Resolution 2001-232 Page 2 WHEREAS, a noticed public heating was be held by the City Council to receive public input on the proposed PBID on July 24, 2001 at 6:00 P.M. at City Council Chambers, 276 Fourth Avenue; and WHEREAS, a minor change to the PBID Management Plan has been recommended which would exempt churches within the PBID from paying assessments related to economic development activities withJn the PBID. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby declare the results of the assessment ballot tabulation; confirm the diagram and assessment; and establish the Downtown Chula Vista Property-based Business Improvement District (PBID) pursuant to the Property and Business Improvement District Law of 1994 and California-Government Code Section 53753; and FURTHER RESOLVED that the a duly notice public heating was held by the City Council to receive public input on the proposed PBID on July 24, 2001 at 6:00 P.M. at City Council Chambers, 276 Fourth Avenue, pursuant to Section 36621(c)(2) of the PBID Law and Section 53753(d) of the California Government Code; and FURTHER RESOLVED that the PBID will be located in downtown Chula Vista and will include the area from E Street to I Street and from Church Avenue to Landis Avenue as more particularly described on the map attached to the PBID Management Plan; and FURTHER RESOLVED that the services to be provided in the PBID will include economic development, marketing and parking management; district wide maintenance; and Third Avenue enhanced maintenance as more particularly described in the PBID Management Plan; and FURTHER RESOLVED that the estimated costs for the first year of operation of the PBID will be approximately Three Hundred and Three Thousand Two Hundred Eighty Five Dollars (S303,285) which cost may be increased in future years a maximum of five percent (5%) annually; and FURTHER RESOLVED that the City Council has carefully considered public input received during the public hearing and has determined that the establishment of the PBID is in the best interest of the City of Chula Vista; and FURTHER RESOLVED that the properties within the PBD shall be subject to any amundments to the PBID Law; and FURTHER RESOLVED that the activities to be provided within the PBID will be funded by a levy of the assessment of properties within the PBID and that the revenue shall not be used Resolution 2001-232 Page 3 to provide improvements or activities outside the PBID or for any purpose other than as specified by the PBID Management Plan as modified by this Resolution; and FURTHER RESOLVED that the City Council finds and determines based on the information presented to the City Council, including the engineer's report prepared as part of the PBID adoption process, that the properties located within the PBID will be benefited by the improvements and activities funded by the PBID assessment; and FURTHER RESOLVED that following the closing of the public heating, the City Clerk tabulated the assessment ballots and has found that a majority of the assessment ballots submitted, and not withdrawn, were in favor of the establishment of the PBID; and FURTHER RESOLVED that the PBID Management Plan shall be mended to exempt churches in the PBID from paying assessments related to the economic development activities within the PBID and that the City finds and determines that such amendment does not substantially change the overall assessment of the PBID; and FURTHER RESOLVED that the City Clerk is directed to record a notice and assessment diagram pursuant to California Street and Highway Code Section 3114. Presented by Approved as to form by Chris Salomone Community Development Director John M//Kaheny City. Attorney Resolution 2001-232 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City o£ Chula Vista, California, this 24th day of July, 2001, by the following vote: AYES: Councilmembers: Davis, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: Padilla ATTEST: Shirley Horton,/~t,layor Susan Bigelo~,, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2001-232 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 24th day of July, 2001. Executed this 24th day of July, 2001. Susan Bigelow, City Clerk RESOLUTION NO. 2001-236 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING THE INTENT TO 1NITIATE DISSOLUTION PROCEEDINGS FOR. THE TOWN CENTRE MAINTENANCE DISTRICT WHEREAS, on July 24, 2001, the City Council established the Downtown Property- Based Business Improvement District (PBID) pursuant to the Property and Business Improvement District Law of 1994; and WHEREAS, the PBID will take over the existing Town Centre Maintenance District as of January 1, 2002; and and WHEREAS, existing reserves will be used to fund expenses through December 31, 2001; WHEREAS, at that time, the District will be dissolved in accordance with Section 22610 of the California Streets and Highways Code. NOW, THEREFORE, BE IT RESOLVED as to Town Centre District, that the City Council of the City of Chula Vista does declare the intent to initiate dissolution proceedings for the Town Centre Maintenance District. Presented by Approved as to form by Ju~blP. Lippitt ~' ' ic Works Director John M./Kaheny City Attorney ~ Resolution 2001-236 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 24~h day of July, 2001, by the following vote: AYES: Councilmembers: Davis, Rindone, Salas and Ho~on NAYS: Councilmembers: None ABSENT: Councilmembers: Padilla ATTEST: Shirley HortonffMayor Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) l, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2001-236 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 24th day of July, 2001. Executed this 24th day of July, 2001. Susan Bigelow, City Clerk RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $53,705 IN THE TOWN CENTRE LANDSCAPE MAINTENANCE DISTRICT FUND (FUND 351) FOR ELIGIBLE LANDSCAPE MAINTENANCE ACTIVITIES WHEREAS, the Downtown Property and Business Improvement District (PBID) formed by a vote of downtown property owners in 200l, came into effect on January 1, 2002, and the activities formerly carried out by the existing Town Centre Landscape Maintenance District (LMD) were incorporated into the PBID, and WHEREAS, this action will enable the City to use the remaining funds collected for the LMD to enhance the landscaping contained within the original District boundaries; and and WHEREAS, the current balance in the Town Centre Fund (Fund 351) is $53,705; WHEREAS, since the LMD would not technically be in operation during Fiscal Year 2002-03, no money was appropriated into this fund for this fiscal year; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby appropriate $53,705 in the Town Centre Landscape Maintenance District Fund for Eligible Landscape Maintenance Activities. Presented by Approved as to form by John P. Lippitt Director of Public Works C~ity M' Kaheny Attorney COUNCIL AGENDA STATEMENT Item ¢ Meeting Date 1/14/03 1TEM TITLE: Resolution Declaring City's intention to underground overhead utilities along East "J" Street from east of Lori Lane to Hilltop Drive, and setting a public hearing for the formation of Utility Underground District Number 138 for February 11, 2003 at 6 p.m. SUBMITTED BY: DirectorofEngineering//~J REVIEWED BY: City Manager ~.a ~>~'~ (4/Sths Vote: Yes No X ) On November 12, 1991, the City Council approved Resolution No. 16415 accepting a report on the City's Utility Undergrounding Conversion Program and approving a revised list of utility underground conversion projects. On November 1, 2002, an Underground Utility Advisory Committee (UUAC) meeting was held at the site to determine the proposed boundary of an underground utility district for the conversion of existing overhead utilities. The proposed boundary is shown on attached Exhibit A. The district's limits extend along East "J" Street from east of Lori Lane to Hilltop Drive. RECOMMENDATION: That Council approve the resolution declaring the City's intention to underground overhead utilities along East "J" Street from east of Lori Lane to Hilltop Drive and setting a public hearing for the formation of Utility Underground District Number 138 for February 11, 2003 at 6 p.m. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The Underground Utility Advisory Committee (UUAC), consisting of representatives of SDG&E, Pacific Bell, Cox Communications, Chula Vista Cable and the City, agreed to propose to the City Council the formation of a district for the conversion of overhead utilities to underground East "J" Street from east of Lori Lane to Hilltop Drive. The proposed utility undergrounding district along East "J" Street is about 7,000 feet long (1.3 miles), running from east of Lori Lane to Hilltop Drive (See Exhibit A). The estimated cost for undergrounding the utilities is $1,600,000. The Average Daily Traffic (ADT) count on East "J' Street, between east of Lori Lane to Hilltop Drive, is approximately 10,000 vehicles per day. Page 2, Item tT~ Meeting Date 1/14/03 Staff recommends the formation of this conversion district along this section of East "J" Street because: East "J" Street is a two-lane major west/east thoroughfare between the western and eastern portions of Chula Vista. The undergrotmding of existing overhead utilities will contribute to the creation of an aesthetically pleasing major street. 2. This segment of East "J" Street is classified in the General Plan's Circulation Elements as a Class II Collector street. 3. In addition to single family residential, the district fi-onts along Halecrest Elementary School, McCandiss Park, Hilltop High School, Fire Station #2, and a commercial site. Section 15.32.130 of the Chula Vista Municipal Code requires the City Council to set a public heating to determine whether the public health, safety, and general welfare requires the undergrounding of existing overhead utilities within designated areas of the City to give persons the opportunity to speak in favor of or against the formation of a proposed district to underground utilities. The purpose of forming the district is to require the utility companies to underground all overhead lines and to remove all existing wooden utility poles within the District and to require property owners to convert their service connections to underground. The conversion work by the property owners involves trenching, backfill and conduit installation from property line to point of connection. Chula Vista City Council Policy No. 585-1 established a mechanism that helps property owners with the cost of the conversion work from the distribution lines to the structure. Said policy provides for the reimbursement of property owners at a rate of $35 per lineal foot of trenching, which is normally sufficient to cover total costs. Exhibit B shows a reimbursement schedule listing reimbursement amount for all 63 affected properties. The total reimbursement is approximately $110,000 and is included in the overall cost estimate of $1,600,000. Approval of this resolution will set a public hearing to be held during the City Council meeting of February 11, 2003 at 6 p.m., in accordance with Section 15.32.130 of the Municipal Code for the formation of this district. Section 15.32.140 of the City Code requires the City Clerk to notify all affected persons and each utility company of the time and place of the public heating at least 15 days prior to the date of the public hearing. Notice is to be given by mail to all property owners and occupants of property located within the boundaries of the proposed district. The City Clerk is required by said section of the Code to publish the Resolution of Intention, setting the public hearing in the local newspaper no less than five days prior to the date of the public hearing. It should be noted that Fire Station//2 is excluded from the subject district. Overhead utilities to the fire station were required by the City to be undergrounded with previous building improvements. Page 3, Item ~ Meeting Date 1/14/03 FISCAL IMPACT: The cost of pole removal, undergrounding overhead facilities and private property conversion reimbursements as outlined above is estimated to be approximately $1,600,000. SDG&E's allocation funds (Rule 20-A) will cover the estimated cost of the project. The estimated cost for street lights project associated with the undergrounding district is estimated to be approximately $100,000. City staff will be establishing a separate CIP project for the street light work to be done in FY 03/04. The $100,000 funding source is anticipated to come from Gas Tax. All staff costs associated with the formation of this district is not reimbursable from the allocation funds and, therefore, are borne by the General Fund. Attachment: Exhibit A Boundary Map Exhibit B Reimbursement Schedule J:\EngineerLAGENDA\UUD 138 Intention.jcm.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING CITY'S INTENTION TO UNDEGROUND OVERHEAD UTILITIES ALONG EAST "J" STREET FROM EAST OF LORI LANE TO HILLTOP DRIVE, AND SETTING A PUBLIC HEARING FOR THE FORMATION OF UTILITY UNDERGROUND DISTRICT NUMBER 138 FOR FEBRUARY 11, 2003 AT 6:00 P.M. WHEREAS, Chapter 15.32 of the Chula Vista Municipal Code establishes a procedure for the creation of underground utility districts and requires as the initial step in such procedure the holding of a public hearing to ascertain whether public necessity, health, safety, or welfare requires the removal of poles, overhead wires and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service in any such district; and WHEREAS, on November 1, 2002, Underground Utility Advisory Committee (UUAC) meetings were held at the site to determine the proposed boundary of an underground utility district for the conversion of existing overhead utilities along East "J" Street from east of Lori Lane to Hilltop Drive; and WHEREAS, it has been recommended that such an underground utility district, hereinafter called "District", be formed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: 1. NOTICE IS HEREBY GIVEN that a public hearing will be held in the Council Chambers of the City of Chula Vista at 276 Fourth Avenue in said City on Tuesday, the 1 lth day of February, 2003 at 6:00 p.m., to ascertain whether the public necessity, health, safety or welfare requires the removal of poles, overhead wires and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication, or similar associated service in the District hereinabove described. At such hearing, all persons interested shall be given an opportunity to be heard. Said hearing may be continued from time to time as may be determined by the City Council. 2. The City Clerk shall notify all affected property owners as shown on the last equalized assessment roll and utilities concerned of the time and place of such hearing by mailing a copy of this resolution to such property owners and utilities concerned at least fifteen (15) days prior to the date thereof. 3. The area proposed to be included in the District is as shown on Exhibit A attached hereto and made a part hereof by reference. J:\Attomey\RESO\UUD intention 138.doc Presented by Approved as to form by John P. Lippitt Director of Public Works John M. Kaheny City Attorney J:kAttomey\RESO\UUD intention 138.doc COUNCIL AGENDA STATE/~NT Item Meeting Date 1/14/03 ITEM TITLE: SUBMITTED BY: REVIEWED BY: Resolution Awarding a Purchase Agreement in the amount of $310,564.68 for twelve replacement police pursuit sedans to Villa Ford, in accordance with the terms and conditions of City of San Diego cooperative bid #A3044/00 Director of Public Works Operations],/~~/~ Assistant City Manager Powell ~/ ' O(4/5ths David D. Rowlands, Jr., City Manager ~ Vote: Yes No X~ The FY 2002-03 Equipment Maintenance Budget provides for the replacement of twelve police pursuit sedans. The Chula Vista Municipal Code Section 22.56.140 and Council Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage. The City has an opportunity to participate in a current City of San Diego bid for favorable terms and pricing. The City of San Diego publicly advertised the bid and one local dealer, Fuller Ford, was sent a bid package. None of the dealerships from the City of Chula Vista responded to the bid. RECOMMENDATION: That the City Council approve the Resolution awarding the Purchase Agreement in the amount of $310,564.68 to Villa Ford for twelve police pursuit sedans. DISCUSSION: In the past, the City of Chula Vista has entered into purchasing agreements with the City of San Diego for various pieces of equipment. Several local agencies combined requirements for this bid and, as a result, received favorable terms and pricing based on volume discounts. The City of Chula Vista has an opportunity to participate in the City of San Diego Bid and realize these cost benefits. The twelve police pursuit sedans are being replaced in their normal retirement cycle. FISCAL IMPACT: An amount of $387,252 has been provided in the Equipment Replacement Fund for the replacement of twelve police pursuit sedans. This represents a savings of $76,687.32 due to prices being lower than anticipated. File No 1320-50-DG DSD-ave's Data\BUDGET~113 Police patrol vehicles FY024)3 dec RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A PURCHASE AGREEMENT iN THE AMOUNT OF $310,564.68 FOR TWELVE REPLACEMENT POLICE PURSUIT SEDANS TO VILLA FORD, IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CITY OF SAN DIEGO COOPERATIVE BID#A3044/00 WHEREAS, the FY 2002-03 Equipment Maintenance Budget provides for the replacement of twelve police pursuit sedans; and WHEREAS, the Chula Vista Municipal Code Section 22.56.140 and Council Resolution No. 6132 authorize the Purchasing Agent to participate in cooperative bids with other government agencies for the purchase of materials of common usage; and WHEREAS, the City has an opportunity to participate in a current City of San Diego bid for favorable terms and pricing; and WHEREAS, an amount of $387,252 has been provided in the Equipment Replacement Fund for the rcplacement of twelve police pursuit sedans and this represents a savings of $76,687.32 due to prices being lower than anticipated; NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby award the Purchase Agreement in the amount of $310,564.68 to Villa Ford for twelve police pursuit sedans. Presented by Approved as to form by John P. Lippitt Director of Public Works J:,Attomey~,a~ard police sedans doc ~5'M. Kaheny ~.,~it y Attorney 1 COUNCIL AGENDA STATEMENT Item No.: Meeting Date: 1/14/03 ITEM TITLE: Resolution of the Chula Vista City Council approving a two-party agreement between the City of Chula Vista and Economics Research Associates for Financial consulting services to prepare models and fiscal impact analyses for the City's General Plan Update, and authorizing the Mayor to execute said agreement SUBMITTED BY: Director of Planning and Building X~? REVIEWED BY: City Manager (~ {Z/~.(~ (4/Sths Vote: Yes No X_.) In November 2001, the City Council approved an overall work program and budget for the General Plan Update project. Included in that work program and budget were preparation of several studies to be done by consultants, including preparation of a Fiscal Impact Analysis (FIA). Staff issued a Request for Proposals (RFP) and has conducted a competitive selection process to choose a consultant to prepare the General Plan Update FIA. Economics Research Associates (ERA) was chosen by the City's selection committee, and this report presents a proposed agreement with ERA to complete the work for a cost of $89,895. The proposed FIA contract includes preparation of a customized fiscal impact model, and the analysis and presentation of the fiscal impacts of various General Plan land use and policy alternatives. RECOMMENDATION: That the City Council adopt the Resolution approving the Agreement and authorizing the Mayor to sign said Agreement. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Background The preparation of a number of technical studies, including a fiscal impact analysis (FIA), is an integral component of a General Plan Update. The FIA plays several key roles including the establishment of current baseline fiscal conditions regarding City facilities and services, operating costs, and expenditures and revenues, the identification of fiscal impacts associated with buildout under the current City General Plan, and the evaluation of potential fiscal impacts associated with various proposed General Plan land use alternatives and policy options. Those evaluations will be fundamental to the refinement and selection of final, fiscally sound General Plan alternatives for consideration. Page 2, Item No.: ~ Meeting Date: 1/14/03 The proposed agreement with Economics Research Associates (ERA) will result in development of a customized fiscal impact model that considers the border economy and other unique conditions within the South Bay and Chula Vista. The model will also allow the City to evaluate the effects of potential changes in levels-of-service and costs, as well as other policy alternatives such as fiscal reform that would distribute certain revenues from the State and other sources based on different formulas than are currently used. The City will also receive a copy of the customized modeling software, along with a user manual and training that will allow the City to use the model to evaluate future project proposals subsequent to the General Plan Update. Consultant Selection Process On May 23, 2002, a Request for Proposals (RFP) was distributed to 30 qualified firms throughout California. By the July 8, 2002, response deadline, a total of five proposals were received. The Selection Committee including staff from the Planning, Budget & Analysis, and Community Development Departments reviewed and rated the proposals, and invited all five firms to interview. Based upon both the proposal and interview, the Selection Committee determined that Economics Research Associates (ERA) best demonstrated the ability to perform the required services. ERA brings to the table diverse experiences in real estate, urban planning, and economic development, as well as fiscal impact analysis. ERA is quite familiar with Chula Vista and South Bay/border economics, and recently completed work in the preparation of an Economic Development Strategy for the City. ERA is experienced and staffed in a manner such that they can deliver the required services within the necessary timeframes. Staff has processed and negotiated the details of the proposed agreement in accordance with procedures set forth in Section 2.56 of the City's Municipal Code. Scope of Consultant Services Following is a summary of the major components of work to be completed by ERA under the proposed agreement: · Project Orientation- ERA will meet with the City to obtain necessary background materials, and will review those materials as they relate to and affect the development of an individualized fiscal impact modeling methodology. These materials include, but are not limited to, the City's budget, General Plan and other related policies that establish standards, fiscal agreements with the County and other cities and agencies, development agreements, tax increment distribution formulas, population and household projections, land use composition, infrastructure / public facilities inventory, and anticipated wage and benefit increases. Staff and ERA have also agreed to use of a Peer Review Group to review early assumptions and factors, and to provide input on the proposed modeling methodology. The Group is intended to consist of 3 to 4 persons including governmental, financial industry, and academic practitioners. Page 3, Item No.: ~, Meeting Date: 1/14/03 Development of Standards and Factors- ERA will meet in focus groups with department heads and/or staff to review their particular budgets and discuss major line item operating costs and capital costs that vary by location, density and/or land use. ERA will also determine which facilities and services serve a citywide population versus sub-areas, existing sources of funding these costs, and which facilities or services are funded by special benefit assessments or development agreements. The focus groups will also provide input on current facility and service standards, and whether they anticipate any changes to these standards. ERA will meet with local developers to obtain information regarding residential, commercial and industrial property prices and trends to inform assessed valuation and real appreciation assumptions. ERA will prepare a report presenting this and other information regarding taxable sales factors, market values for various land uses, and capital and operating assumptions for review and confirmation by the City and the Peer Review Group. Preparation of Modeling Methodology- ERA will develop a fiscal impact modeling methodology acceptable to the City, which predicts costs and revenues associated with the build-out of the City's General Plan in accordance with defined level-of-service standards for City services, and fiscal policies regarding the allocation of revenues such as sales tax and vehicle license in-lieu fees, among others. To address the uncertainty inherent in predicting future events, a sensitivity analysis of the model's key assumptions will also be included. This analysis will identify how variability in the model's key inputs affects the model's outputs, including estimated "confidence levels". ERA will prepare reports presenting the methodology. The modeling methodology will be finalized based on reviews by the City and the Peer Review Group. Evaluation of Current Conditions and Existing City General Plan- ERA will use the approved model to test the results of the model when applied to the City's adopted General Plan. They will submit a report presenting the results of the modeling for review and cornment by the City and the Peer Review Group. Based on those comments, ERA Consultant will make according changes to the model before it is used to test any of the proposed land use and policy alternatives for the General Plan Update. Evaluation of General Plan Alternatives and Policy Options- ERA will utilize the model to test City-identified land use altematives and policy options in three phases. The first will consist of an initial three General Plan land use alternatives, and up to 5 policy options. The second would consist of an additional three Page4, ItemNo.: ~ Meeting Date: 1/14/03 land use alternatives, and up to 5 policy options. The third would be of any refinements made based on the final alternatives and the preferred alternative to be presented for action. The land use alternatives and other policy altematives would be developed by the City's General Plan staff team, in coordination with the General Plan citizen committees. ERA will prepare reports presenting the results of its analysis for review and comment by the City. The reports will also indicate the annual cash flow results for each land use altemative and policy option so the City can understand how variances in phasing may affect the City's fiscal resources. · Preparation of Final Fiscal Impact Analysis Report- Based on City comments on the above, ERA will then prepare a Final Fiscal Impact Analysis Report presenting the fiscal impact results of the formal General Plan alternatives and the Preferred Alternative, which will become part of the technical studies document package to be published for final public review of the General Plan Update. · Fiscal Model User Manual and StaffTraining- ERA will prepare and submit the spreadsheet-based final fiscal impact model for use by the City, and will provide a user manual and conduct a training session with City staff. Contract Costs The total cost of the contract for FIA consulting services is a fixed fee of $89,895, to be paid in increments related to milestones defined in the agreement. FISCAL IMPACT: On November 6, 2001, the City Council approved an overall work program and budget for the two-plus year General Plan Update project. Included in that work program and budget were preparation of several studies to be done by consultants, including preparation of a fiscal impact analysis. The budget included a total of $873,500 for all the consultant studies, and funding for these studies has already been included within the City General Plan Update CIP. Costs for each of the consultant studies were based on general estimates, with the understanding that actual costs might vary as final, more detailed scoping for each study was developed, and as responses to requests-for-proposals were received. An initial estimated cost of $40,000 was included for the Fiscal Impact Analysis (FIA). Since that time, extensive discussion of the preferred approach to the FIA with the Office of Budget and Analysis resulted in the scoping of a more sophisticated model, tailored to the uniqueness of Chula Vista and the border economy. The total cost of $89,895 reflects this. The net additional cost of $49, 895 can be offset from within the already budgeted City General Plan Update CIP based on anticipated reductions in costs for other studies including the Demographic and Housing Profile, and the Environmental Impact Report. RESOLUTION NO. 2003- RESOLUTION OF THE CHULA VISTA CITY COUNCIL APPROVING A TWO-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND ECONOMICS RESEARCH ASSOCIATES FOR FINANCIAL CONSULTING SERVICES TO PREPARE MODELS AND FISCAL IMPACT ANALYSES FOR THE CITY'S GENERAL PLAN UPDATE, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, on November 6, 2001, the City Council approved an overall work program and budget for the General Plan Update project, which includes the preparation of several studies to be done by consultants, including preparation of a fiscal impact analysis, and; WHEREAS, the preparation of a fiscal impact analysis is a necessary component of the General Plan Update process in order to identify fiscal impacts associated with various proposed General Plan land use alternatives and policy options, so that fiscally sound General Plan alternatives can be developed for consideration, and; WHEREAS, on May 23, 2002, the Planning and Building Department distributed and advertised the Request for Proposals to provide financial consulting services to prepare fiscal impact analyses for the General Plan Update, and; WHEREAS, by July 8, 2002, the City received five (5) proposals to provide the requested consulting services, and; WHEREAS, after the duly appointed Selection Committee completed their review of the proposals and interviews with all five (5) of the consulting firms, the Committee selected Economics Research Associates (ERA) as the Consultant to provide the required financial consulting services for the General Plan Update, and; WHEREAS, the Consultant warrants and represents that they are experienced and staffed in a manner such that they can deliver the required services within the necessary time frames, all in accordance with the terms and conditions of this Agreement, and; WHEREAS, the Director of Planning and Building has negotiated the details of this Agreement in accordance with the procedures set forth in Chapter 2.56 of the Chula Vista Municipal Code, and; WHEREAS, funding for the preparation of the fiscal impact analyses has already been included within the City General Plan Update CIP, and; WHEREAS, the proposed AgTeement with ERA to prepare the fiscal impact analyses is for a fixed fee of $89,895 is within the cost ranges for consulting services identified in the approved General Plan Update C1P budget; NOW THEREFORE BE IT RESOLVED that the City Council of the City Of Chula Vista does hereby approve the two-party Agreement between the City and Economics Research Associates, Consultant, for financial consulting services in support of the City's General Plan Update, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for, and on the behalf of the City of Chula Vista. Presented By Robert A. Leiter Director of Planning and Building Approved as to form by City Attorney (J:\planning\ed\gpu rfps\fia contract reso.doc) THE ATTACHED 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 City Attorney Dated: AGREEMENT BETWEEN CITY OF CItULA VISTA AND ECONOMICS RESEARCIt ASSOCIATES FOR FINANCIAL CONSULTING SERVICES FOR TItE CITY GENERAL PLAN UPDATE Parties and Recital Page(s) Agreement between City of Chula Vista and Economics Research Associates for Financial Consulting Services for the City General Plan Update This agreement ("Agreement"), dated for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set ,forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals W~EREAS, the City of Chula Vista is currently in the process of a comprehensive update of the City General Plan, and; WHEREAS, the preparation of fiscal impact analyses are a necessary component of the General Plan update process in order to identify the revenue and operating effects, and related policy implications pertinent t'o the various General Plan update scenarios and to document baseline fiscal conditions for the City and the region to establish a valid model for evaluating the scenarios, and; WHEREAS, on May 23, 2002, the City of Chula Vista Planning and Building Department distributed and advertised the Request for Proposals to provide financial consulting for the General Plan Update, and; five and; WHEREAS, by July 8, 2002, the City of Chula Vista received (5) proposals to provide said financial consulting services, Two Party Agreement GPU FIA - January 2, 2003 Page 1 WHEREAS, after the duly appointed Selection Committee completed their review of the proposals and interviewed the five (5) consultant firms, the Selection Committee selected Economics Research Associates (ERA)as the Consultant to provide the required financial consulting services, and; WHEREAS, the Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement. (End of Recitals. Next Page starts Obligatory Provisions. Two Party Agreement GPU FIA - January 2, 2003 Page 2 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed Page 3 Two Party Agreement GPU FIA - January 2, 2003 fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and sub- consultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverage, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City 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 in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. 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. Two Party Agreement GPU FIA - January 2, 2003 Page 4 (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. {1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. Two Party Agreement GPU FIA - January 2, 2003 , Page I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. Ail billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract GPU FIA - January 2, 2003 Page 6 Each party designates the individuals ("Contract Achr~inistrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. Term. This Agreement shall terminate when with all executory provisions hereof. the Parties have complied 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time delays by the City are not subject to penalties. Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the Page 7 Two Party Agreement GPU FIA January 2, 2003 purposes of the Political Reform Act conflict of interest and disclosure provisions, and ~hatl report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. 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. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FP?C 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 Cor~nission, 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. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant ' s immediate family members, nor Consultant ' s employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which Two Party Agreement Page 8 GPU FIA - January 2, 2003 may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. 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 in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that maybe 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, except with the written permission of City. 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, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify,.protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees} arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect Page 9 Two Party Agreement GPU FIA January 2, 2003 and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. This section in no way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to this Agreement. As to the Consultant's professional obligation, work or services involving this Project, the Consultant agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, losses or payments for injury to any person or property, caused directly or indirectly from the negligent acts, errors or omissions of the Consultant or Consultant's employees, agents or officers; provided, however, that the Consultant's duty to indemnify s~hall not include any claims or liability arising from the negligence or willful misconduct of the City, its agents, officers and employees. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. Two Party Agreement GPU FIA - January 2, 2003 Page 10 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City to remedy the error. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same {whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the sub- consultants identified thereat as "Permitted Sub-consultants". 12. Ownership, Publication, Reproduction and Use of Material Ail reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject Page 11 Two Party Agreement GPU FIA - January 2, 2003 to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. As to the future use of the Consultant's work produced pursuant to this Agreement, and for purposes other than as described in Exhibit A hereto, the City acknowledges that the fiscal analysis should not be used for a financial offering absent additional due diligence and/or update. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Two Party Agreement GPU FIA January 2, 2003 Page 12 Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices Ail notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. Ail notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served Page 13 Two Party Agreement GPU FIA - January 2, 2003 or deposited in the United States mail, addressed postage prepaid, registered or certified, with requested, at the addresses identified herein as business for each of the designated parties. to such party, return receipt the places of D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] Two Party Agreement GPU FIA - January 2, 2003 Page 14 Signature Page to Agreement between City of Chula Vista and Economics Research Associates for Financial Consulting Services for the City General Plan Update IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: , 2003 City of Chula Vista Attest: by: Stephen Padilla, Mayor Susan Bigelow, City Clerk Approved as to form: John M. Kaheny, City Attorney Consultant: Economics Research Associates William Anderson, Vice-President Dated:_ /~/?//~ Two Party Agreement GPU FIA - January 2, 2003 Page 15 Exhibit A to Agreement between City of Chula Vista and Economics Research Associates 1. Effective Date of Agreement: 2. City-Related Entity: January , 2003 (x) City of Chula Vista, a municipal chartered corporation of the State of California Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California Industrial Development Authority of the City of Chula Vista, a Other: [insert business form] , a ( "City" ) 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Economics Research Associates Business Form of Consultant: ( ) Sole Proprietorship ( } Partnership (X) Cgrporation Place of Business, Telephone 964 Fifth Avenue, Suite 214 San Diego, California 92101 Voice Phone (619) 544-1402 Fax Phone (619) 544-1404 and Fax Number of Consultant: Exhibit 'A' Two Party Agreement GPU FIA - January 2, 2003 Page 1 7. General Duties: Consultant will prepare an individualized Fiscal Impact Model for the City of Chula Vista, and use that model to (a)identify and analyze current baseline revenues, levels of service, and operating cost conditions for the City within its General Plan Area, as well as buildout conditions under the currently adopted General Plan, and (b)evaluate the revenue, operating cost, and fiscal impacts and implications of various land use alternatives and other policy options in conjunction with the comprehensive update of the City's General Plan. The methodology for development of this model, as well as the outcomes of modeling of current conditions and the various General Plan land use alternatives and policy options, shall be presented by the Consultant in reports which will become part of the technical studies document package to be published in conjunction with the General Plan Update, and used in support of the environmental and other reviews of the effects of proposed General Plan Update land use and policy alternatives. Consultant will use the Fiscal Impact Model to estimate the costs of providing specified urban services, as well as receipt of specified revenues, associated with various land use alternatives regarding future development of residential, commercial, industrial, and other land uses within the City's General Plan Area, looking forward up to the year 2030. In addition, Consultant will use the model to test policy options relative to "levels of service" for certain types of urban services, as well as options pertaining to "fiscal reform" policies that would distribute certain revenues from the State and other sources to the City based on different formulas than are currently used. The proposed Fiscal Impact Model shall be designed to project marginal expenditures and revenues where appropriate, rather than applying an average cost methodology across the board, and will not make the simplifying assumption that future per-capita revenues and expenditures will necessarily remain at current levels, particularly with regard to the City's major revenue and expenditure categories. The model will include a sensitivity analysis of key assumptions that will result in confidence intervals for model outputs in addition to point estimates. The model will project expenditures and revenues by year, through projected City build-out. Preparation of the fiscal impact model and analyses is necessary in order to document current, baseline fiscal Exhibit 'A' Page 2 Two Party Agreement GPU FIA - January 2, 2003 conditions in the City and its General Plan Area, and to identify fiscal issues, considerations and policy implications pertinent to the development of fiscally sound alternatives to be presented with the General Plan Update. 8. Scope of Work and Schedule: A. Detailed Scope of Work: In fulfilling the General Duties described above, Consultant shall perform all of following to the satisfaction of the City's General Plan Project Manager in completion of work under this Agreement: I. Project Orientation Upon request of City's General Plan Project Manager, Consultant will meet with the City to obtain necessary background materials, and will review those materials as they relate to and affect the development of an individualized fiscal impact modeling methodology for the City's General Plan Update. These materials include, but are not limited to, the 'City's budget, General Plan and other related policies that establish standards, fiscal agreements with the County and other cities and agencies, development agreements, tax increment distribution formulas, population and household projections, land use composition, infrastructure / public facilities inventory, and anticipated wage and benefit increases. (2) Upon request of the City's General Plan Project Manager and review of the necessary materials, Consultant will meet with the City to discuss the City's fiscal goals, objectives and. concerns, and to discuss average versus marginal cost approaches and variables, changes in assumptions to be tested, and protocols for working with the various departments. (3) Upon request of the City's General Plan Project Manager, Consultant will meet with the City and the Exhibit 'A' Two Party Agreement Page 3 GPU FIA January 2, 2003 Peer Review Group (selected by the City), to review and receive input from the Group regarding the approach to the Fiscal Impact Analysis and modeling methodology. II. Development of Standards and Factors (1) Consultant will meet in focus groups, as City's General Plan Project Manager deems necessary, with selected department heads and/or staff (including but not limited to, Parks and Recreation, Public Works, Library, Community Development, Public Safety, Planning and Building, and Finance) to review their particular budgets and discuss major line item operating costs and capital costs that vary by location, density and/or land use. Consultant will also determine which facilities and services serve a citywide population versus sub- areas, existing sources of funding these costs, and which facilities or services are funded by special benefit assessments or development agreement concessions. Consultant will also discuss with these City Department focus groups what current facility and service standards are, and whether the City anticipates any changes to these standards. (2) Consultant will meet up to five (5) local developers, as determined by the City in conjunction with the Consultant, in a focus group to obtain information regarding residential, commercial and industrial property prices and trends to inform assessed valuation and real appreciation assumptions. (3) Based on review of the orientation materials and the above focus group interviews, and the City's determination of fixed versus variable costs, and citywide versus subarea costs, Consultant will prepare and submit 10 copies of a written summary and list of service and facility standards that are either explicitly stated as policy, or are implied by exiting planned development, and will meet with Exhibit 'A' TWO Party Agreement GPU FIA - January 2, 2003 Page 4 the City to review and discuss this summary. (Deliverable No. 1 meeting) (Deliverable No. 1) (4) Prior to submittal of Deliverable No.2, Consultant will develop taxable sales factors to assign to households, retail space (and the portion supported by non-residents), workers, and business / warehouse space based on Consultant's research of supportable to Mexican the City's Consultant City. retail land, expenditures attributable shoppers, and Consultant's analysis of business-to-business taxable sales. will confirm these factors with the (5) Prior to submittal of Deliverable No.2, Consultant will establish realistic market values per unit for different types of land uses, and will reasonably anticipate any real appreciation based on comparable sales data, and price trends for major use categories, adjusted for inflation, and considering the constraints under Proposition 13. Consultant will confirm these values with the City. (6) Prior to submittal of Deliverable No.2, Consultant will identify draft capital and operating assumptions based on current policies and practices, and any anticipated changes in such. Consultant will define these standards according to service areas criteria, as appropriate, to facilitate marginal cost modeling. Consultant will confirm these standards with the City. Consultant will develop fiscal cost and revenue factors by land use for each subarea, consistent with the City's service standards and facility capacity. Revenue factors will only apply to those budget line items that do not require special formulas to estimate. Consultant will confirm these factors with the City. III. Preparation of Modeling Methodology (1) The Consultant shall develop a fiscal impact Exhibit ~A' Two Party Agreement Page 5 GPU FIA - January 2, 2003 modeling methodology acceptable to the City, which predicts costs and revenues associated with the build-out of the City's General Plan in accordance with defined level-of-service standards for City services,, and fiscal policies regarding the allocation of revenues such as sales tax and vehicle license in-lieu fees, among others. The model shall be designed to project marginal expenditures and revenues where appropriate, rather than applying an average cost methodology across the board. Rather than assuming that future per- capita revenues and expenditures will remain at current levels, the model shall use statistical modeling to project these values, or provide an alternative solution to this issue. The model methodology must also address projected sales tax revenue recognizing the influence of visitors from Mexico and other South Bay cities, and how sales tax revenue is allocated to both residential and non-residential'land uses. City will provide Consultant with timeline assumptions of when major new City facilities are projected to be operating, along with assumed levels of service. Annual expenditure projections will be adjusted by Consultant for negotiated or projected wage and benefit increases. Annual revenue projections will be adjusted for both fixed revenue growth and applicable inflationary changes. The model shall also include the following components: a. A sensitivity analysis of the model's key assumptions to address the considerable uncertainty inherent in predicting future events. This analysis shall identify how variability in the model's key inputs affects the model's outputs, including estimated "confidence levels". Consultant will conduct the following tasks as part of the sensitivity analysis: (i) Allow for variable uncertainty by utilizing a Microsoft Excel compatible risk analysis software package (such as @ Risk) Exhibit 'A' Two Party Agreement GPU FIA - January 2, 2003 Page 6 (ii) (iii) (iv) (v) Identify key input variables by testing individual variables for magnitude of impact on model outputs. Establish reasonable ranges of variation and probability distributions for each significant input variable Establish addition to outputs Assess the associated assumption scenario, confidence intervals in point estimates of model relative level of risk with each alternative scenario, land use and/or policy scenario as b. An analysis of potential cash flow problems under different development scenarios, such as an instance (for example) where retails development might significantly lag residential development. c. An analysis of how the costs and benefits of development are distributed among various population groups, as requested by the City, such as how much of the projected sales tax increment is projected to come from visitors from Mexico and other South Bay cities. No more than ten groups will be selected. {2) Preparation of Draft Report on Modeling Methodology Consultant shall prepare and present a flow-chart based modeling methodology report outlining, describing and explaining the various modeling assumptions and methodology, and demonstrating how the model is intended to work, how marginal costs and market-related revenue factors are addressed, and how the models sensitivity will be assessed. The report shall also include identification of any service areas to be used to account for variances in cost and revenues for certain line items. Exhibit 'A' Two Party Agreement GPU FIA - January 2, 2003 Page 7 Ten (10) copies of the Draft Modeling Methodology Report shall be provided for review and comment by the City and the Peer Review Group. (Deliverable No. 2) (3) Upon request of City's General Plan Project Manager Consultant shall meet with the City and the Peer Review Group to receive comments and input on the Draft Report. (4) Preparation of Final Modeling Methodology, Model and Report (Deliverable No. 3) Based on the review and inputs from the City and the Peer Review Group, Consultant shall make any according revisions to finalize the modeling methodology and the associated Report. The model itself will be developed as a series of integrated Microsoft Excel spreadsheets, with macros, that allow static and variable input factors to project fiscal costs and revenues over time for various General Plan land use and policy scenarios. The model will apply cost factors by land use for each fiscal service zone that reflect the marginal cost in each zone. Costs will be assigned to each land use based on a rationale relationship between the item and land use, which will be explained and documented in the Report. The model will similarly apply general revenue factors by land use for those revenue items that do not require special formulas to estimate. These will also .be explained and documented in the Report. The model will present the net fiscal impact of land use scenarios by year to the year 2020 for each fiscal service zone, along with the ~ggregate impact to the City. IV. Evaluation of Current Fiscal Conditions and Existing City General Plan 1. Consultant will utilize the approved model to test the results of the model when applied to the City' s adopted General Plan. Consultant will prepare and submit 10 copies of a report presenting Exhibit 'A' Page 8 Two Party Agreement GPU FIA - January 2, 2003 the results of the modeling for review and comment by the City and the Peer Review Group. (Deliverable No. 4) 2. Upon request of the City's General Plan Project Manager, Consultant will meet with the City and the Peer Review Group to review and discuss the report and model outcomes, and to receive any direction as to changes to the model before it is used to test any of the proposed land use and policy alternatives for the General Plan Update. V. Evaluation of initial General Plan land use alternatives and policy options 1. Consultant will utilize the model to test three (3) General Plan land use alternatives and up to 5 policy options as identified by the City's General Plan Project Manager. Consultant will prepare and submit 10 copies of a report presenting the results of the modeling for review and comment by the City and the Peer Review Group. The report will indicate the annual cash flow results for each land use alternative and policy option so the City can understand how variances in phasing may affect the City's fiscal'resources. (Deliverable No. 5) 2. Upon request of the City's General Plan Project M'anager, Consultant will meet with the City to review and discuss the report and model outcomes. 3. Upon request of the City's General Plan Project Manager, Consultant may be required, at the City's discretion, to attend a community meeting to make a presentation and/or answer questions as to the fiscal implications of the initial General Plan land use alternatives and policy options. VI. Evaluation of additional General alternatives and policy options Plan land use Exhibit ~A' Two Party Agreement GPU FIA - January 2, 1. Consultant will utilize the model to test an additional three (3) General Plan land use alternatives and up to 5 policy options as identified by the City's General Plan Project Page 9 2003 Manager. Consultant will prepare and submit 10 copies of a report presenting the results of this modeling for review and comment by the City and the Peer Review Group. The report will indicate the annual cash flow results for each land use alternative and policy option so the City can understand how variances in phasing may affect the City's fiscal resources. (Deliverable No. 6) 2. Upon request of the City's General Plan Project Manager, Consultant will meet with the City to review and discuss the report and model outcomes. 3. Consultant may be required, at the City's discretion, to attend a community meeting to make a presentation and/or answer questions as to the fiscal implications of the additional General Plan land use alternatives and policy options. VII. Preparation of Draft Fiscal Impact Analysis Report, and electronic version of modeling software (Deliverable No.7) 1. Consultant shall prepare and submit 15 copies of a concise but comprehensive Draft Fiscal Impact Analysis Report that presents all the research and analysis conducted as part of this engagement, documents the assumptions used in the model, and presents the analysis of a City-selected set of General Plan alternatives, including a preferred alternative to be presented as the City's proposed General Plan Update. Consultant will also identify fiscal-related planning issues and policy implications pertinent to the General Plan update. Recommendations will be made for planning options and policy development. Key findings from the analysis shall be presented in an Executive Summary in the Report. A full print out of the model outputs will be included as an appendix. 2. The Draft Fiscal Analysis Report will be accompanied with an Excel-based electronic version of the model, with macros, and a draft user-friendly manual for City staff use. The model will be designed to evaluate General Plan alternatives, but will be linked to simplified consolidated spreadsheets for evaluating specific projects. Exhibit 'A' Two Party Agreement GPU FIA - January 2, 2003 Page 10 VIII. Preparation of Final Fiscal Impact Analysis Report, Model User Manual and Staff Training Based on City comments, Consultant will then revise the Report and make final modifications to the model as required. Consultant will provide 15 bound copies of the Final Fiscal Impact Analysis Report, along with one (1) unbound camera-ready' copy, and an electronic version of the document in Microsoft Word format. The spreadsheet model will also be submitted in electronic format. (Deliverable No.8) Based on City comments, Consultant will submit one (1) camera-ready copy of a final user manual for City Staff. (Deliverable No.9) Upon request of the City's General Plan Project Manager, Consultant will conduct one (1) training session with City staff on use of the modeling software. Length of that session to be determined by City in conjunction with Consultant. Meetings and Consultation: Project Manager, IX. General Plan Upon request of the City's Consultant will meet with appropriate City personnel, as well as outside agency personnel and developers as warranted, during the preparation of the fiscal impact analyses to assist in obtaining current information needed for the preparation of the analyses pursuant to the detailed scope of work contained in this agreement. Consultant shall also hold periodic meetings throughout the work period with the applicable members of the City's General Plan Update Team to initiate the project, discuss progress of the work effort, clarify scope of work details, resolve pertinent issues as they arise, review staff comments, and finalize the analyses. These may include, at the City's General Plan Project Manager's discretion, in-person meetings, phone conversations, and conference calls· 3. Consultant will also attend up to 3 General Plan Update Economic Development Subcommittee meetings in Exhibit 'A' TWO Party Agreement Page 11 GPU FIA - January 2, 2003 order to present information regarding this work effort, respond to questions raised by the Subcommittee and members of the public, and otherwise participate in these meetings as directed by City. Consultant will attend up to two (2) community meetings to present modeling conclusions regarding land use and policy alternatives, and/or to answer questions regarding related fiscal impacts; and Consultant will attend up to two (2) Planning Commission hearings, and one (1) City Council hearing on adoption of the General Plan Update to present fiscal impact evaluations and information, and to answer questions. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Submit 10 bound copies of the Summary of Facility and Service Standards report (see task 8.A. II{3}). (Due date; not later than 1/22/2003) Deliverable No. 2: Submit 10 bound copies of the Draft Report on Modeling Methodology (see task 8.A.III(2)). (Due date; within 3 weeks after Deliverable No. 1 meeting (expected due date to be on or about 2/14/2003)) Deliverable No. 3: Submit 10 bound copies of the Final Modeling Methodology Report (see task 8.A. III(4)). (Due date; within 1 week of delivery of comments on Deliverable No. 2 to Consultant, (expected due date to be on or about 3/7/2003)) Deliverable No. 4: Submit 10 bound copies of the report on Modeling Evaluation of Current Fiscal Conditions and the Existing City General Plan (see task 8.A.IV(1)). (Due date no later than 6 weeks after City receives Deliverable No. 3, (expected due date to be on or about 4/18/2003)) Deliverable No. 5: Submit 10 bound copies of a report presenting the modeling analysis of the initial General Plan land use alternatives and policy options (see task 8.A.V(1)). Exhibit ~A' Page 12 Two Party Agreement GPU FIA January 2, 2003 (Due date: no later than 7 weeks of City's delivery of land use alternatives and policy options to Consultant) Deliverable No. 6: Submit 10 bound copies of a report presenting the modeling analysis of additional General Plan land use alternatives and policy options (see task 8.A.VI(1)). (Due date: No later than 8 weeks after City's delivery of the land use alternatives and policy options to Consultant) Deliverable No. 7: Submit 15 bound copies of the General Plan Update Draft Fiscal Impact Analysis Report, and one electronic copy of the computer model (see task 8.A.VII(1)&(2)). (Due date: No later than 5 weeks after City's delivery of comments and direction on Deliverable No. 6 to Consultant) Deliverable No. 8: Submit 15 bound copies, 1 unbound camera- ready copy, and an electronic version in MS Word format of the General Plan Update Final Fiscal Impact Analysis Report, and one electronic copy of the computer model (see task 8.A.VII(1)). (Due date: No later than 2 weeks after City's delivery of comments and direction on Deliverable No. 7 to Consultant) Deliverable No. 9: Submit 1 camera-ready copy of a final User Manual for the computer-based fiscal impact model (see task 8.A.VII(2)). (Due date: Within 1 week of submittal of Deliverable No. 8) Date for completion of all Consultant services: Completion of all required tasks described under Section 8.A of this Agreement to the satisfaction of the City's General Plan Project Manager. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). {x) Errors and Omissions Insurance: $250,000 (not included in Conunercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: Exhibit ~A' TWO Party Agreement GPU FIA - January 2, 2003 Page 13 The following materials will be delivered by City to Consultant within two weeks of the effective date of Agreement: ao Current City Budget and related materials b. Current City General Plan and supporting policy documents c. Base Area Maps of Adopted City of Chula Vista (in electronic GIS format) identifying: i. General Plan land uses ii. Adopted Zoning and densities iii. Developed and undeveloped acreage by land use Fiscal agreements with other agreements with the County of San General Plan Study type jurisdictions, including Diego regarding Otay Ranch. e. The Otay Ranch ~FIND' model results and assumptions f. Any development agreements affecting fiscal conditions g. Redevelopment Project Area details and tax distribution formulas increment h. Adopted population and household projections by defined subareas i. Inventory of public facilities and major infrastructure improvements j. Historic taxable sales data k. Assessed valuation data 1. Available information regarding identification of fixed and variable costs by department m. Information identifying cost distribution factors at both a citywide and sub-area level 11. Compensation: A. (X) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Exhibit ~A' Two Party Agreement GPU FIA - January 2, 2003 Page 14 Single Fixed Fee Amount: $89,895.00, for the required tasks payable as follows: MILESTONE AMOUNT 1 Signing of this Agreement by all parties and $4,500.00 upon request of the Consultant 2 Submittal of Deliverable No. 1' $6,000.00 3 Submittal of Deliverable No. 2* $10,700.00 4 Submittal of Deliverable No. 3* $10,700.00 5 Submittal of Deliverable No. 4* $10,700.00 6 Submittal of Deliverable No. 5* $10,700.00 7 Submittal of Deliverable No. 6* $10,700.00 8 Submittal of Deliverable No. 7* $10,700.00 9 Submittal of Deliverables No. 8 and 9* $10,700.00 10 Completion of Work (5% retention) $4,495.00 * For purposes of payment, deliverables shall completely address and analyze all issues/content identified in the detailed scope-of- work (as described in Exhibit A, Section 8) to the satisfaction of the General Plan Project Manager. Payment shall not be made until the City's General Plan Project Manager determines that complete work products have been submitted. ( Exhibit 'A' Two Party Agreement GPU FIA - January 2, 1. Interim Mohthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans, which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the Page 15 2003 City that has been provided, but in no event shall such interim advance payment be made unless the Contzactor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2. 3. $ Exhibit 'A' Two Party Agreement GPU FIA - January 2, 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts 2003 Page 16 Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ( ) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: 1) ( ) 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 Defined Services herein required of Consultant including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $89, 895.00 ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee of Consultant Hourly Name Rate Sr. Vice President Exhibit ~A' Two Party Agreement GPU FIA - January 2, 2003 Steve Spickard $245 Page 17 Vice President Senior Associate Senior Associate Associate Associate Support Staff William Anderson 7tmitabh Barthakur Jung Kim Brett Piercy $220 $145 $160 $105 $105 $ 5O 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. Cost or Rate Reports, not to exceed $ : Copies, not to exceed $ : Travel, not to exceed $ : Printing, not to exceed $ : Postage, not to exceed $ : Delivery, not to exceed $ : Long Distance Telephone Charges, not to exceed $ Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : 13. Contract Administrators: City: Ed Batchelder, General Plan Project Manager, Planning and Building Department, 276 Fourth Avenue, Chula Vista, CA 91910, (619) 691-5005. Consultant: William Anderson, ~ice President, Economics Research Associates, 964 Fifth Avenue- Suite 214, San Diego, CA 92101, (619) 544-1402. 14. Liquidated Damages Rate: ( ) $__ per day. ( ) Other: 15. Statement of Economic Interests, Categories, per Conflict of Interest Code: Consultant Report. ing (X) Not Applicable. Exhibit ~A' Two Party Agreement GPU FIA - January 2, 2003 Not an FPPC Filer. Page 18 ) FPPC Filer Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Category No. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. Category No. 7. Business positions. ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker 17. Permitted Subconsultants: None. 18. Bill Processing: and/or Salesman Exhibit ~A' TWO Party Agreement GPU FIA - January 2, 2003 Page 19 A. Consultant's Billing to be submitted for the following period of time: (X) Monthly ( ) Quarterly ( ) Other: Day of the Period for submission of Consultant's Billing: ( ) First of the Month (X) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: To be assigned after agreement is processed. 19. Security for Performance ( ) ( ) ( ) (x) Performance Bond, $ Letter of Credit, $ Other Security: Type: Amount: $ Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (X) Retention Percentage: 5 % ( ) Retention Amount: $ Retention Release Event: (X) Completion of Ail Consultant Services to the satisfaction of the City's General Plan Project Manager. ( ) Other: Exhibit ~A' TWO Party Agreement GPU FIA - January 2, 2003 Page 20 COUNCIL AGENDA STATEMENT Page 1, Item ~ Meeting Date 1/14/03 ITEM TITLE: Public Hearing to take public testimony on the formation of Community Facilities District No. 08-I (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 Community Facilities District No. 08-I ( Otay Ranch Village Six), And Authorizing Submittal of Levy of Special Taxes within such Community Facilities District 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. 08-I (Otay Ranch Village Six), Submitting to the Qualified Electors of such Community Facilities District Separate Propositions to Authorize the Levy ora Special Tax therein, to authorize such Community Facilities District to incur a Bonded Indebtedness Secured by the Levy of a Special Tax to Finance certain types of Public Facilities and to establish an appropriations limit for such Community Facilities District, and giving Notice thereon SUBMITTED BY: Director of Engineering,,2 City Manager ~ (4/Sths Vote: Yes No X ) REVIEWED BY: On August 27, 2002 Council accepted the Otay Project L.P. application and approved the initiation of proceedings to consider the formation of Community Facilities District No. 08-1 (CFD-08-I). On December 10, 2002 Council approved the Resolution of Intention to form Community Facilities District No. 08-1 and the Resolution of Intention to Incur a Bonded Indebtedness of CFD-08-I and set the public hearing for January 7, 2003. At the request of the City of Chula Vista, the Public hearing has been moved to January 14, 2003. CFD-08-I will fund the construction of public facilities, such as roadways for the Otay 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. 08-1 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. 7-/ Page 2, Item ~ Meeting Date 1/14/03 RECOMMENDATION: That Council: · Open the Hearing, take public testimony, close the public hearing; · Approve the Resolution (A) Forming and Establishing Community Facilities District No. 08-I (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. 08-1 (Otay Ranch Village Six), Submitting to the Qualified Electors Propositions 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. 08-1 (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 December 10,'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 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 funded by the district. 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 CFD-08-I as proposed that include certain parcels located within Otay Ranch Village Six ( 189 gross acres). Village Six is comprised of property owned by McMillin Otay, LLC and Otay Project, LP. tn general the entire Village Six is bounded by Olympic Parkway to the North, Birch Road to the South, La Media Road to the West and the Proposed SR 125 to the East. This will be the second Community Facilities District to be formed for Village Six. Community Facilities District 2001-2 (McMillin Otay Ranch Village Six) has already been formed on their particular property and CFD-08-1 will comprise the remainder of Village Six. The property within Village Six that is owned by Otay Project, LP and which will be included in CFD-08-I is divided into two distinct sections, one in the Southwest Quadrant and another in the Northeast Quadrant of Village Six. Page 3, Item r~ Meeting Date 1/14/03 At this time Otay Project, LP is anticipating that only 93 acres will be developed for commercial and residential development with the remaining acres to be reserved for other uses. At buildout there are proposed to be 1,353 residential units, a 2.9 acre commercial development, two Community Public Facilities Parcels, a Park and an elementary school. The Improvements The developer is proposing the financing of backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, and utilities) and public facilities. Following is a general description of the proposed facilities including, but not limited to: La Media Road West Olympic Parkway (Portion) Otay Lakes Road Birch Road East Palomar Street ViewPark Street Magdalena Avenue Santa Venetia Street 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: East "H" Street East of 1-805 Telegraph Canyon Road East of I 805 In addition to the above facilities, this CFD's bonding capacity may be used to pay for other facilities to be financed by any of the Development Impact Programs. 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 $18.5 million (assuming a 6.5% interest rate and a 30-year term on the bonds). A bond sale amount of $18.5 million will finance approximately $14.7 million in facilities (i.e. grading, landscaping, streets, 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 $18.5 million will be available for funding by this district. However, the district will be sized for $25 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-08-I financing will be brought later to Council in conjunction with the Acquisition/Financing Agreement and other bond documents. Page 4, Item r/ Meeting Date 1/14/03 The City may, in its sole discretion, elect to authorize and make the proceeds of any series of bonds issued for the District available to pay the cost of construction or the purchase price for the acquisition of Improvements for the "Traffic Enhancement Program". 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 ofChula Vista's Transportation Development Impact Fee (TDIF) benefit area that places a cap on the CFD's ability to finance certain TDIF 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-08-I 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 $18.5 million mentioned above. Special Tax Report A copy of the Special Tax Report ("Community Facilities District Report Mello-Roos Community Facilities Act of 1982 for Community Facilities District No. 08-I ( 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 December 10, 2002), that establishes the procedures for levying the special taxes in CFD-08-I. The district is divided into two Zones, Zone A and Zone B, ~vith the following two Land Use Class classifications: Land Use Classes: 1) Applies only to Developed Residential Property; 2) Applies only to Developed Non-Residential Property; and The proposed Tax Rates are as follows: · Residential Developed Parcels (single and multi family residences) are taxed on the square footage of the building. The proposed residential Tax Rates are as follows: Residential Developed Parcels Assigned Special Tax Land Use Class 1-Zone A Land Use Class 1-Zone B $800.00 per Unit plus $.27 per square foot of Residential Floor Area $800.00 per Unit plus $.27 per square foot of Residential Floor Area At the time the Special Tax is levied, Developed Parcels are those parcels for which a building permit has been issued. This Special Tax rate has been determined by a preliminary Page 5, Item '~ Meeting Date 1/14/03 "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-08-I on residential parcels. It 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 -Zone A $6,000 per acre of Non-Residential Property Land Use Class 2 -Zone B $6,000 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. 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 tmdeveloped, 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 lbr McMillin Otay Ranch Village Six. The proposed Undeveloped Tax Rate is $14,981 per acre for Zone A and $24,418 per acre for Zone B The RMA includes a Backup Special Tax where when each Final Subdivision Map is recorded the Backup Special Tax shall be determined based on the. acreage of the Residential Property and Undeveloped Property proposed to be Residential Property or Non-Residential Property and Undeveloped Property proposed to be Non-Residential Property and the lots in such Final Subdivision Map area. The Backup Special Tax formula includes the Undeveloped Property Tax times the acreage (Final Subdivision Map), divided by the number of lots (Final Subdivision Map). The RMA determines that the classification of Property Owner Association Property, Public Property, Open Space Community Purpose Facility Property and Assessor's Parcels with Public or utility easements shall not reduce the sum of all Taxable Property to less than approximately 40.98 acres within Zone A and approximately 42.43 acres within Zone B. If Page 6, Item ~ Meeting Date 1/14/03 this occurs, the acreage below the minimums set previously will be deemed Provisional Undeveloped Property and taxed at a proposed rate of $14,981 per acre for Zone A and $24,418 per acre for Zone B as described in Section E of the RMA. Collection of Taxes First, the proposed Assigned Special Tax will be levied on the Developed Property. Second, if this pool of funds is not enough to meet the annual debt service, as may be the case in the early years of development, the City Administrator will levy a Special Tax on the Undeveloped Property. If additional monies are needed after the first two steps have been completed, the special tax shall be increased proportionately on each parcel from the Assigned Special Tax up to the Maximum Annual Special Tax as determined by the application of a Backup Special Tax. If, after these three steps are exhausted, there is still a need for additional monies, then the special tax shall be levied proportionately on each parcel classified as Provisional Undeveloped Property 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 the Special Tax rates are based on the square footage of the home or acreage for Non- Residential Property the bondholders require protection in the event that the developer builds less than projected. A 10% contingency has been used in calculating the expected developed Final Subdivision Map acreage which is incorporated into the Backup Special Tax Formula and the Undeveloped Tax Rate formula. 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 Tl~e.CFD Policy requires any bond issue secured by the levy of special taxes be sized based upon a m~mmum 4:1 value-to-lien ratio. A ratio of less than 4:1, but equal to or greater than 3:1, may be approved, in the sole discretion of Council, when it is determined that a ratio of less than 4:1 is financially prudent under the circumstances of a particular District. A final appraisal and lien ratio analysis would be available for Council consideration prior to bond sale, which is planned for late in 2002. If the final analysis shows parcels which fail to meet the 4:1 or 3:1 ratio, the developer would be required to either: Provide cash or letters of credit to maintain the value-to-lien ratio within the CFD Policy; or, · The principal amount of the bonds to be issued for District will be reduced to comply with the CFD Policy; or, · Provide sufficient information to convince Council that a lesser lien ratio is prudent. 7-5, Page 7, Item ~ Meeting Date 1/14/03 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. 08-I is the formal action forming and establishing Community Facilities District No. 08-I (Otay Ranch Village Six) and authorizing submittal of levy 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 CFD-08-I. 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. · 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. Page 8, Item Meeting Date 1/14/03 · 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 of Community Facilities District No. 08-I (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 o fan accotmt 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 annually file a report ~vith 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 $25 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 heating on January 14, 2003 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-08-I, to direct staff to prepare the necessary ballot documents, and to a hold special election on January 21,2003. On January 28, 2003 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. Page 9, Item ~ Meeting Date i/14/03_ 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 staff time involved in district formation and administration activities. Staff anticipates that most of the CFD- 08-! 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 bond sale amount of $18.5 million said monetary compensation would be $185,000. Said amount shall be paid prior to bond sale (scheduled for Spring 2003) and will be deposited into the General Fund. The CFD Policy also stipulates that said compensation is not eligible for financing by CFD-08-1. Attachments: Exhibit 1: Recorded Boundary Map for CFD-08~i Exhibit 2: Special Tax Report: "Community Facilities District No. 08-I Otay Ranch Village Six". J:\Engmeer\AGENDA\CAS 1-14 03.doc 0 Z · -ri (Dm COMMUNITY FACILITIES DISTRICT MELLO-ROOS COMMUNITY FACILITIES ACT 1982 SPECIAL TAX REPORT COMMUNITY FACILITIES DISTRICT NO. 08-1 OTAY RANCH VILLAGE SlX For the City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 CITY OF CHULA VIS[A Prepared by McGill Martin Self, Inc. 344 F Street Suite 100 Chula Vista, California 91910 December 17, 2002 '7-// TABLE OF CONTENTS Page I. INTRODUCTION II. PROJECT DESCRIPTION ......................................................................... 2-3 IlL DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES ........................ 34 A. Descrytion o£Proposed Public Improvements ................................... 3-4 B. Estimated Cost of Proposed Public Improvements .............................. 4 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES .................................... 4 A. Projected Bond Sales ............................................................... 4-5 B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness .........................................................................5 C. Incidental Expenses to be Included in the Annual Levy of Special Taxes. 5 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX ..................... 5-6 A. Explanation for Special Tax Apportionment .................................... 6-7 B. Assigned Special Tax Rates ................................................ 7 C. Backup Special Tax ................................................................ 7 D. Maximum Annual Special Tax Rate ................................................. 7 E. Accuracy o f Information ........................................................... 7-8 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT .................................. 8 VII. GENERAL TERMS AND CONDITIONS ....................................................... 8 A. Substitution Facilities .............................................................. 8 B. Transportation Enhancement Facilities .......................................... 8 C. Appeals .............................................................................. 8 EXHIBITS Exhibit A Exhibit B Exhibit C Recorded Boundary Map Rate and Method of Apportiomment Assigned Maximum Special Tax Rates -7 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. 08-I (Otay Ranch Village Six) shall hereinafter be referred to as: "CFD-08-I"; and WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed Community Facilities District No. 08-I (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 apportionment 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. Community Facilities District No. 08 1 Page I Otay Ranch Vt?lage Six December 2002 II. PROJECT DESCRIPTION This Community Facilities District No. 08-1 (CFD-08-I) encompasses approximately 189 gross acres of land located in south San Diego County within the City of Chula Vista and is an area known as "Otay Ranch Village Six". Refer to Exhibit A - for a reduced copy of the Recorded Boundary Map. Of this acreage, approximately 93 acres is expected to be developed by several affiliated merchant builders for approximately 1,353 residential units, 2.9 acres of commercial development, 7.5 acres for Community Facilities, along with 7.5 acres for a park and 7.7 acres slated for an elementary school. The property within Village Six that is owned by Otay Project, LP and which will be included in CFD-08-! is divided into two distinct sections, one in the Southwest Quadrant and another in the Northeast Quadrant of Village Six. CFD-08-1 is divided into two tax zones (Zone A and Zone B), for Special Tax consistency purposes. Refer to Exhibit A for the location of Zones A and B. Zone A Zone A consists of Planning Areas R-2A, R-2B, R-5A, R-5B and R-9A. All of these planning areas are currently sold to or are planned to be sold to affiliated merchant builders. This Tax Zone consists of all single family detached units with Planning Area R-2A consisting of 92 units, Planning area R-2B consisting of 106 units, Plarming area R-5A consisting of 51 units, Planning area R-5B consisting of 55 units, Planning area R-9A Phase 1 consisting of 99 units and Planning area R-9A Phase 2 consisting of 40 units. At build-out, it is expected that Zone A will consist of approximately 443 Single Family Detached Units. The Single Family uses are anticipated to generate approximately 961,098 square feet of residential building square footage. The total taxable acreage for this Tax Zone is approximately 45.53 acres. Zone B Zone B consists of Planning Areas R-7A, R-7B, R-8, R-9B, R-9D, S-I, C-1 and CPF-1 and CPF 1-x. All of these planning areas are currently sold to or are planned to be sold to affiliated merchant builders. This Tax Zone consists of single family detached units, single family attached units, apartments, conunercial property, a park, a school, and Community purpose facilities. Planning Area R-7A consists of 92 single family attached units, Planning Area R-7B consists of 201 single family attached units, Planning Area R-8 consists of 336 Apartments, Planning Area R-9B consists of 159 single family attached and 73 single family detached units, Planning Area R-9D consists of 49 single family detached units, S-1 consists of an Elementary School Site, C-1 consists of a Cormnercial site, CPF-1 consists of a Church and CPF-lx consists of a proposed Swim Center. At build-out, it is expected that Zone B will consist of approximately 73 single family detached units, 501 single family attached units, 336 Apartments, a 2.9 acre commemial site, a 7.5 acre Community Facilities District No. O&l Page 2 Otay Ranch Village Six December 2002 park, a 7.7 acre school site, a 4.5 acre church site and a 1.5 acre swim club site. The Single Family Uses are anticipated to generate approximately 1,075,040 square feet of residential building square footage. The total taxable acreage for this Tax Zone is approximately 47.13 acres. Special taxes for CFD No. 08-I (Otay Ranch Village Six) for Zone A and Zone B shall be levied to Taxable Property to satisfy the Special Tax Requirement as follows: · First, to Developed Property within Zone A and Zone B up to the Maximum Annual Special Tax; · Second, if necessary, to Undeveloped Property within Zone A and Zone B up to the Maximum Annual Special Tax for Undeveloped Property; · Third, if necessary, the Maximum Annual Special Tax within Zone A and Zone B derived by the application of the Backup Special Tax increased proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax and; · Fourth, if necessary, Special Tax within Zone A and Zone B increased proportionately on all Provisional Undeveloped Property up to the Maximum Annual Special Tax. 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-08-i is authorized to own, construct, or finance, and which are required, in part, to adequately meet the needs of CFD-08-I. The approved Acquisition and Financing Agreement sets the priority for the financing of these facilities. 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 facilities described herein are those currently expected to be required to adequately meet, in part, the needs of CFD-08-I. Because the actual needs of CFD-08-I arising as development progresses therein may differ from those currently anticipated, CFD-08-I reserves the right to modify the priority of the facilities proposed herein to the extent CFD-08-I 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 be Community Facilities District No. 08-1 Page 3 Otay Ranch Village Six December 2002 apportioned as described in the Rate and Method of Apportionment (RMA) of the Special Tax for CFD-08-I. Proceeds of the proposed bonded indebtedness of CFD-08-I will be used to finance backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, utilities, etc.), public facilities, DIF Improvements and Traffic Enhancement Facilities. Following is a general description of the proposed facilities: Bo · La Media Road · West Olympic Parkway (Portion) · Otay Lakes Road · Birch Road · East Palomar Street · ViewPark Street · Magdalena Avenue Santa Venetia Street · "Traffic Enhancement Facilities" · Facilities to be financed by Development Impact Program Fees 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. TABLE 1 Proposed Public Facilities Facilities Improvements Estimated Cost · La Media Road · West Olympic Parkway (Portion) · Otay Lakes Road · Birch Road · East Palomar Street · ViewPark Street · Magdalena Avenue · Santa Venetia Street Community Facilities District No. 08-I Page 4 Otay Ranch Village Six August 2002 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES A. Proiected Bond Sale For CFD-08-I there is proposed to be one issuance of bonds. The bond amount for CFD- 08-I will be approximately $18.5 million, which will finance approximately $14.7 million in facilities. The bonds for are presently plaimed to be sold in the Spring of 2003. The bonds issued by CFD-08-I 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. Bo Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness for CFD-08-1 Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all 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 issuance expenses are estimated at 4 % of the face amount of the bonds. Incidental Expenses to be Included in the Annual Levy of Special Taxes for CFD-08-I. 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 disthct; any other expenses incidental to the construction, completion, and inspection of the authorized ~vork; and the retirement of existing bonded indebtedness. While the actual cost of administering CFD-08-I 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. Community Facilities District No. 08 1 Page 5 Otay Ranch Village Six December 2002 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX All of the property located within CFD-08-I, unless exempted by law, shall be taxed for the purpose of providing necessary facilities to serve CFD-08-I. 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 (RMA) provides information sufficient to allow each property owner within CFD-08-I to estimate the maximum annual Special Tax he or she will be required to pay. Sections A through C below, provide additional information on the Rate and Method of Apportionment (RMA) of the Special Tax for CFD-08-I. 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-08-I. 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 incoiporated in establishing the Special Tax rates for CFD-08-I. The major assumption inherent in the Special Tax 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. Commemial land uses typically generate mom trip- Community Facilities District No 08-1 Page 6 Otay Ranch Village Six August 2002 -7 7 Bo Co Do 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. 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-08-I shall be levied to Taxable Property to satisfy the Special Tax Requirement as outlined in the RMA for CFD-08-I. The Land Use Class Categories of Taxation have been established for CFD-08-I. The categories are defined as follows: Residential Developed Parcels (single and multi-family residences) are taxed on the square footage of the building; and Non-Residential Developed Parcels are taxed based on the acreage of the parcel. Based on the types of public facilities that are proposed for CFD-08-I 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-08-I can be considered fair and reasonable. Assiened Soecial Tax Rates Exhibit C lists the Assigned Special Tax rates that are proposed to be levied against Residential Property and Non Residential Property within CFD-08-I. This is the proposed Special Tax for Developed Property to meet the debt service obligation to pay for the Bonds. Backup Special Tax When a Final Subdivision Map is recorded within CFD-08-I, the Backup Special Tax for Assessors Parcels of Developed Property classified as Residential Property or Non- Residential Property will be determined pursuant to Section C.l.b of the RMA. This Special Tax can be used if the Assigned Special Tax does not cover the current debt service obligation. Maximum Annual Special Tax Rate The City Council will annually determine the actual amount of the Special Tax levy on property based on the method described in the RMA's and subject to the Maximum Annual Special Tax. The Maximum Annual Special Tax Rate for Developed Residential Property is the greater of the Assigned Special Tax or the Backup Special Tax. The Maximum Annual Special Tax for Non-Residential, Undeveloped and Provisional Community Facilities District No. 08-1 Page 7 Otay Ranch Village Six December 2002 Eo Undeveloped Property is $14,981 per Acre for Zone A and $24,418 per Acre for Zone B. The City will levy a Special Tax to the extent necessary, sufficient to meet the Special Tax Requirement. Accuracy of Information In order to establish the Assigned Special Tax rates and the Backup Special Tax as set forth in the Rate and Method of Apportionment for CFD-08-I, McGill 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-08-I, including the inability to meet the financial obligations of CFD-08-I. VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of CFD-08-I include all land on which the Special Taxes may be levied. The Recorded Boundary Map of the area included within CFD-08-I is provided as Exhibit A. VII. GENERAL TERMS AND CONDITIONS A. Substitution Facilities Bo 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. Transportation Enhancement 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 Transportation Enhancement Facilities. This could result in the revision of the facilities priority structure in the Acquisition and Financing Agreement 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 Community Facilities- District No. 08-I Page 8 Otay Ranch Village Six August 2002 the appeal and, if necessary, meet with the applicant. If the findings of the City Administrator verify that the amount of the Special Tax should be modified or changed, then, as appropriate, the Special Tax levy shall be corrected, pursuant to Section F. of the RMA. Community Facilities District No. 08-1 Page 9 Otoy Ranch Village Six December 2002 EXHIBIT A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX) RECORDED BOUNDARY MAP Community Facilities Distric~ No. 08 1 Page 10 Otay Ranch Village Six August 2002 Z ~o xZ~w°~ ~ (]VOH Vid]bi Vq EXHIBIT B CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX) RATE AND METHOD OF APPORTIONMENT Community Facilities District No. 08-I Page I 1 Otay Ranch Village Six December 2002 7-2L RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (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. 08-I (Otay Ranch Village Six) collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property", "Undeveloped Property", and "Provisional Undeveloped Property" as described below. All of the Taxable Property in CFD-08-I, 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: "'A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of a combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "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, parcel map, condominium plan, record of survey, or other recorded document creating or describing the land area. 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 Fees and Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD-08-I 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-08-I, or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-08-I, 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-08-I, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the City of Chula Vista Community Facilities District No. 08-! Otay Ranch Village Six 11-25-02 Page 1 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-08-I, for any other administrative purposes of CFD-08-I, including, but not limited to attorney's fees and other costs related to commencing and pursuing to completion any foreclosure on an Assessor's Parcel with delinquent Special Taxes. "Assessor's Parcel" means a lot or pamel 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 designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property as determined in accordance with Section C.l.a. "Available Funds" means (a) 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, (b) delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year,(c) that portion of Special Tax prepayments allocated to the payment of interest on Bonds, and (d) 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 amount set forth in Section C. 1.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred by CFD-08-I under the Act. "Bond Year" means a one-year period beginning on September 2nil in each year and ending on September 1st in the following year, unless defined otherwise 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-08-I' means City of Chula Vista Community Facilities District No. 08-1. "City" means the City of Chula Vista. "Community Purpose Facility Property" means all Assessor's Parcels which are (a) classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2002-2883 as amended on November 5, 2002 or (b) designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as a community purpose facility. "Council" means the City Council of the City, acting as the legislative body of CFD-08-I. City of(hula Vista Community Facilities District No. 08-1 Otay Ranch Vdlage Six l 1-25- 02 Page 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 in which the Special Tax is being levied. "Exempt Property" means property not subject to the Special Tax due to its classification as either Public Property, Property Owner Association Property, Community Purpose Facility Property, public or utility easements in accordance with section E. 1. "Final Subdivision Map" means a subdivision of property, created by recordation of a final subdivision map, parcel map or lot line adjustment, approved by the City pursuant to the Subdivision Map Act (Califomia 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 l 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 andJor supplemented from time to time, and any instrument replacing or supplementing the same. "Land Use Class" means any of the classes listed in Table 1 of Section C. 1 .a. "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. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C, which may be levied in any Fiscal Year on any Assessor's Pamel of Taxable Property. "Non-Residential Property" means all Assessor's Parcels of Developed Property, for which a building permit(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Open Space" means property within the boundaries of CFD 08-1 which (a) has been designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as open space, (b) is classified by the County Assessor as open space (c) has been irrevocably offered for dedication as open space, prior to June 1st of the preceding Fiscal Year, to the federal government, the State of California, the County, the City, any other public agency or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Outstanding Bonds" means all Bonds, which remain outstanding as defined in the Indenture. City of Chula Vista 11-25-02 Community Facilities District No. 08-1 Otay Ranch Village Six Page 3 "Property Owner Association Property" means any property within the boundaries of CFD-08-I which is (a) owned by a property owner association or (b) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property owner association property. As used in this definition, a Property Owner Association Property includes any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or Backup Special Tax is equal for all Assessors' Parcels of Developed Property within CFD-08-I. For Undeveloped Property or Provisional Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property and equal for all Assessor's Parcels of Provisional Undeveloped Property within CFD-08-I. "Provisional Undeveloped Property" means all Assessor's Parcels of Public Property, Property Owner Association Property, Community Purpose Facility Property, Open Space or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce thc Acreage of all Taxable Property below the required minimum acreage as set forth in Section E.1 for Zone A or Zone B as applicable. "Public Property" means any property within the boundahes of CFD-08-1 that which (a) is owned by a public agency, (b) has been irrevocably offered for dedication, prior to June 1st of the preceding Fiscal Year, to a public agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes 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 initial building permit(s) issued for such structure. "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 of Special Tax revenue required in any Fiscal Year for CFD-084 to: (i) pay annual debt service on all Outstanding Bonds 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; (iii) pay City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25~02 Page 4 Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD-08-I provided that the inclusion of such mount does not cause an increase in the levy of Special Tax on the Undeveloped Property; (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-08-I that 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. "Zone A" means a specific geographic area as depicted in Exhibits A and B attached hereto. "Zone B" means a specific geographic area as depicted in Exhibits A and B attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD-08-I shall be (a) categorized as being located in either Zone A or Zone B, (b) classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property and (c) subject to the levy of annual Special Taxes determined pursuant to Sections C and D. 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(l) the Assigned Special Tax described in Table 1 which follows or (2) the Backup Special Tax computed pursuant to b. which follows. a. Assiened Snecial Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table l. City of Chula Vista Community Facilities District No. 08-1 Ota? Ranch Village Six 11-25-02 Page 5 TABLE 1 Assigned Special Tax for Developed Property within Zone A and Zone B: Land Use Class Description Assigned Special Tax 1 Residential Property $800 per unit plus $.27 per square foot of Residential Floor Area 2 Non-Residential $6,000 per Acre Property b. Backup Special Tax When a Final Subdivision Map is recorded within Zone A or Zone B the Backup Special Tax for Residential Property, Non-Residential Property and Undeveloped Property shall be determined as follows: For each Assessor's Parcel of Residential Property or Undeveloped Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone A $ 14,981xA L Zone B $ 24,418 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 Non-Residential Property or Undeveloped Property to be classified as Non-Residential Property upon the development thereof within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $14,981 for Zone A and $24,418 for Zone B by the total Acreage Of all City of Chula Vista Community Facilities District No. 08-I Ota? Ranch Village Six 11-25-02 Page 6 Non-Residential Property and Undeveloped Property to be classified as Non- Residential Property upon the development thereof within the Final Subdivision Map area. Notwithstanding the foregoing if an Assessor's Parcel 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, then the Backup Special Tax applicable to such Assessor's Parcel shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property or Provisional Undeveloped Property shall be $14,981 per Acre for Zone A and $24,418 per Acre for Zone B. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Developed Property within Zone A and Zone B 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 all Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. In determining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special Tax to be levied on such Assessor's Parcel, the CFD Administrator shall not include any Acreage shown on any applicable tentative subdivision map or other land use entitlement approved by the City that designates such Acreage for a use that would be classifted as Open Space, Property Owner Association Property, Community Purpose Facility or Public Property. Third: If additional monies are needed to satisfy thc Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property 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 Developed Property.. City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 Page 7 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 all Provisional Undeveloped Property at a rate 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 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 The CFD Administrator shall classify the following as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, (iv) Open Space and (v) 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 40.98 Acres in Zone A and 42.43 Acres in Zone B. Property which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 40.98 Acres in Zone A and 42.43 Acres in Zone B will be classified as Provisional Undeveloped Property and shall be taxed pursuant to the fourth step of Section D. 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. 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 is classified as Provisional Undeveloped Property pursuant to paragraph 1 of Section E shall be prepaid in full by the seller pursuant to Section H. 1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Provisional Undeveloped Property. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in paragraph 1 that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Pamel 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 City of Chula Vista Community Facilities District No. 08-] ?ray Ranch Village Six 11-25-02 Page 8 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 CFD-08-I a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD-08-I, 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 OFSPECIAL TAX The following definition applies to this Section H: "CFD Public Facilities" means those public facilities authorized to be financed by CFD- 08-1. "CFD Public Facilities Costs" means either $19 million, or such lower number as shall be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. "Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously issued Bonds, (ii) from interest earnings on the Construction Fund actually earned prior to City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 Page 9 the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of the proceeds of all previously issued Bonds then on deposit in the Construction Fund. "Outstanding Bonds" means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal 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 for an Assessor's Parcel of Developed Property, Undeveloped Property for which a building permit has been issued, or Provisional Undeveloped Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of such Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, however 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, which can be collected prior to preparing such calculation. The prepayment amount shall be calculated as summarized below (capitalized terms as defined below): Bond Redemption Amount plus plus plus plus less less Total: equals Redemption Premium Future Facilities Amount Defeasance Amount Prepayment Fees and Expenses Reserve Fund Credit Capitalized Interest Credit Prepayment Amount As of the proposed date of prepayment, the Prepayment Amotmt (defined below) shall be calculated as follows: Step No.: For Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For 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, issued for that Assessor's Parcel. For Provisional Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 Page I 0 10. 11. 12. such Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to step 1 by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within CFD-08-I excluding any Assessor's Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. Multiply the quotient computed pursuant to step 2 by the principal amount of the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). Multiply the Bond Redemption Amount computed pursuant to step 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"). if all the Bonds authorized to be issued for CFD-08-I have not been issued, compute the Future Facilities Costs. Multiply the quotient computed pursuant to step 2 by the amount if any, determined pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to such Assessor's Parcel (the "Future Facilities Amount'). 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. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year, which have not yet been paid. Determine the fees and expenses of CFD-08-I, including but not limited to, the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds from the proceeds of such prepayment, and the cost of recording any notices to evidence the prepayment and the redemption (the "Prepayment Fees and Expenses") Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the prepayment amount less the Prepayment Fees and Expenses, as determined pursuant to step 10, from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount computed pursuant to step 11 (the "Defeasance Amount"). City of Chula Vista Community Facilities District No. 08-I Otay Ranch Village Six 11-25-02 Page 11 13. 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. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to step 2 by the expected balance in the capitalized interest fund after such first interest payment (the "Capitalized Interest Credit"). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to steps 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13, and 14 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 step 10 shall be retained by CFD-08-I. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. 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 step 9 above, the CFD Administrator shall remove the current Fiscal Year's Special Tax levy for such Assessor's Parcel from the County tax rolls. With respect to any Assessor's Parcel that is prepaid, the Council shall cause a suitable notice to be recorded in compliance with the Act, to indicate the prepayment of Special Taxes and the release of the Special Tax lien on such Assessor's Parcel, and the obligation of such Assessor's Parcel to pay the Special Tax shall cease. Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within CFD-08-I, both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. Uiiy of Chula Vista Community Facilities District No. 08-I Otay Ranch Village Six 11-25-02 Pase 12 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1, except that a partial prepayment shall be calculated according to the following formula: PP = (PE X F) + A These terms have the following meaning: PP - the partial prepayment PE - the Prepayment Amount calculated according to Section H.1, minus Prepayment Fees and Expenses determined 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 Prepayment Fees and Expenses determined pursuant to step 10. The o~vner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Adminis~ator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to step 16 of Section H.1, and (ii) indicate in the records of CFD-08-I that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. 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 2039-2040 Fiscal Year. City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 Page 13 7 z o /~ ~0 X ~ II = u_ 0 Z 7~ ,:z, bu -rx (.)-- Z~.o RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 08-1 (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 and ordered thc 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") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This community facilities district shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 08-1 (OTAY RANCH VILLAGE SIX) (the "District"); and, WHEREAS, notice of a public hearing relating to the establishment of the District, the extent of the District, the financing of certain types of public facilities 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 heating to establish such District; and, WHEREAS, all communications relating to the establishment of the District, the financing of certain types of public facilities and the rate and method of apportionment of special tax proposed to be levied ~vithin the District 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; and, WHEREAS, inasmuch as there have been less than twelve (12) registered voters residing within the territory 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 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 tree and correct. SECTION 2. DETERMINATIONS. It is hereby determined by this City Council that: 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. 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 as applied to the District 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. 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. Less than twelve (12) registered voters have resided within the 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 the District 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 the District. 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 the District and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the District. 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. 08-I (OTAY RANCH VILLAGE SIX)." 2 SECTION 5. BOUNDARIES OF DISTRICT. The boundaries of the District are generally described as follows: All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 08-I (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 62 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, own or operation, which are the types of facilities proposed to be financed under these proceedings, are generally described in Exhibit A attached hereto and incorporated herein by this reference. 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 copy of which is on file in the Office of the City Clerk. In addition to financing the above described types of facilities, the financing of those incidental expenses described in the Report are also approved and authorized. 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 in the proposed District, is hereby authorized, subject to voter approval, to be levied within the boundaries of the District. For particulars as to the rate and method o f apportionment of the special tax proposed to be levied within the District, reference is made to the attached and incorporated Exhibit "B" (the "Rate and Method of Apportionment"), which sets forth in sufficient detail the method of apportionment of the special tax to allow each landowner or resident within the District 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 financihg 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 3 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. Under no circumstances will the special tax to be levied against any parcel within the District used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than l 0 percent. This legislative body further authorizes that special taxes may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Rate and Method of Apportionment. 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 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 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. SECTION 8. SPECIAL TAX ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions of Government Code Section 50075. l, this City Council hereby establishes the fbllowing accountability measures pertaining to the levy by the District of the special taxes described in Section 7 above: A. The special tax shall be levied for the specific purposes set forth in Section 7. above. B. The proceeds of the levy of such special tax shall be applied only to the specific applicable purposes set forth in Section 7. above. C. The District shall establish a separate account into which the proceeds of 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 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: 4 Engineering Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 SECTION 10. SUBSTITUTION FACILITIES. The description of the types of public facilities, as set forth in Exhibit A hereto, 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 service 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 thereof, such electors being the landowners in the District, with each landoxvner having one (1) voter for each acre or portion thereof of land which he or she owns within the Districl. PREPARED BY: APPROVED AS TO FORM BY: John P. Lippitt, Director of Public Works John Kaheny, City Attorney J:',Attorney\RESO\CFD 08-I Formation.doc EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES The types of public facilities authorized to be financed by the levy of special taxes 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-I 7 EXHIBIT B RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (Otay Ranch Village Six) A Special Tax as hereinafter defined shall bc levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Community Facilities District No. 08-I (Otay Ranch Village Six) collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property", "Undeveloped Property", and "Provisional Undeveloped Property" as described below. All of the Taxable Property in CFD-08-I, 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: "'A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of a combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "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, parcel map, condominium plan, record of survey, or other recorded document creating or describing the land area. 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 Fees and Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD-08-I 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-08-I, or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-08-I, 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-08-I, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 7 ~l~ Page I costs associated with the release of funds fi.om an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD-08-I, for any other administrative purposes of CFD-08-I, including, but not limited to attorney's fees and other costs related to commencing and pursuing to completion any foreclosure on an Assessor's Parcel with delinquent Special Taxes. "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 designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property as determined in accordance with Section C. 1.a. "Available Funds" means (a) 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, (b) delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year,(c) that portion of Special Tax prepayments allocated to the payment of interest on Bonds, and (d) 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 amount set forth in Section C.l.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred by CFD-08-1 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 otherwise 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-08-I" means City of Chula Vista Community Facilities District No. 08-I. "City" means the City of Chula Vista. "Community Purpose Facility Property" means all Assessor's Parcels which are (a) classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2002-2883 as amended on November 5, 2002 or (b) designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as a community purpose facility. "Council" means the City Council of the City, acting as the legislative body of CFD-08-I. City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 -7'-017 Pa~ge 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 in which the Special Tax is being levied. "Exempt Property" means property not subject to the Special Tax due to its classification as either Public Property, Property Owner Association Property, Community Purpose Facility Property, public or utility easements in accordance with section E. 1. "Final Subdivision Map" means a subdivision of property, created by recordation of a final subdivision 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 Table 1 of Section C.l.a. "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. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C, 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(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Open Space" means property within the boundaries of CFD 08-1 which (a) has been designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as open space, (b) is classified by the County Assessor as open space (c) has been irrevocably offered for dedication as open space, prior to June 1st of the preceding Fiscal Year, to the federal govermment, the State of California, the County, the City, any other public agency or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Outstanding Bonds" means all Bonds, which remain outstanding as defined in the Indenture. City of Chula Vista Community Facilities District No. 08-I _Otay Ranch Village Six 11-25-02 "Property Owner Association Property" means any property within the boundaries of CFD-08-I which is (a) owned by a property owner association or (b) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property owner association property. As used in this definition, a Property Owner Association Property includes any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or Backup Special Tax is equal for all Assessors' Parcels of Developed Property within CFD-08-I. For Undeveloped Property or Provisional Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property and equal for all Assessor's Parcels of Provisional Undeveloped Property within CFD-08-I. "Provisional Undeveloped Property" means all Assessor's Parcels of Public Property, Property Owner Association Property, Community Purpose Facility Property, Open Space or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum acreage as set forth in Section E.1 for Zone A or Zone B as applicable. "Public Property" means any property within the boundaries of CFD-08-1 that which (a) is owned by a public agency, (b) has been irrevocably offered for dedication, prior to June 1st of the preceding Fiscal Year, to a public agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes 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 initial building permit(s) issued for such structure. "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 of Special Tax revenue required in any Fiscal Year for CFD-084 to: (i) pay annual debt service on all Outstanding Bonds 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; (iii) pay City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Villa~,e Six 1-25-02 Pa~e4 Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve fimds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD-08-I provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property; (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-08-I that 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. "Zone A" means a specific geographic area as depicted in Exhibits A and B attached hereto. "Zone B" means a specific geographic area as depicted in Exhibits A and B attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD-08-I shall be (a) categorized as being located in either Zone A or Zone B, (b) classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property and (c) subject to the levy of annual Special Taxes determined pursuant to Sections C and D. 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 I which follows or (2) the Backup Special Tax computed pursuant to b. which follows. a. Assigned Special Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. City of Chula Vista Community Facilities District No. 08-1 _Otay Ranch I/illage Six 11-25-02 Page 5 TABLE 1 Assigned Special Tax for Developed Property within Zone A and Zone B: Land Use Class Description Assigned Special Tax 1 Residential Property $800 per unit plus $.27 per square foot of Residential Floor Area 2 Non-Residential $6,000 per Acre Property b. Backup Special Tax When a Final Subdivision Map is recorded within Zone A or Zone B the Backup Special Tax for Residential Property, Non-Residential Property and Undeveloped Property shall be determined as follows: For each Assessor's Parcel of Residential ProperS. or Undeveloped Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone A $ 14,981x A L Zone B $ 24,418 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 Non-Residential Property or Undeveloped Property to be classified as Non-Residential Property upon the development thereof within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $14,981 for Zone A and $24,418 for Zone B by the total Acreage of all City of Chula Vista Community Facilities District No. 08-1 ?ray Ranch Village Six 11-25-02 '~ ~ Page 6 Non-Residential Property and Undeveloped Property to be classified as Non- Residential Property upon the development thereof within the Final Subdivision Map area. Notwithstanding the foregoing if an Assessor's Parcel 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, then the Backup Special Tax applicable to such Assessor's Parcel shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property or Provisional Undeveloped Property shall be $14,981 per Acm for Zone A and $24,418 per Acre for Zone B. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Developed Property within Zone A and Zone B at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on all Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. In determining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special Tax to be levied on such Assessor's Parcel, the CFD Administrator shall not include any Acreage shown on any applicable tentative subdivision map or other land use entitlement approved by the City that designates such Acreage for a use that would be classified as Open Space, Property Owner Association Property, Community Purpose Facility or Public Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately from the Assigned Special Tax up to the Maximun~ Annual Special Tax for each such Developed Property.. City of Chula Vista 11-25-02 Community Facilities District No. 08-1 Otay Ranch Village Six -7'~ ~ Pa$e 7 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 all Provisional Undeveloped Property at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Notwithstanding the above, under no cimumstances will the Special Tax levied against any Assessor's Parcel of 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 The CFD Administrator shall classify the following as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, (iv) Open Space and (v) 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 40.98 Acres in Zone A and 42.43 Acres in Zone B. Property which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than 40.98 Acres in Zone A and 42.43 Acres in Zone B will be classified as Provisional Undeveloped Property and shall be taxed pursuant to the fourth step of Section D. 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. 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 is classified as Provisional Undeveloped Property pursuant to paragraph 1 of Section E shall be prepaid in full by the seller pursuant to Section H.1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Provisional Undeveloped Property. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in paragraph 1 that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who 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 City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25~02 Page8 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 CFD-08-I a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD-08-I, 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: "CFD Public Facilities" means those public facilities authorized to be financed by CFD- 08-I. "CFD Public Facilities Costs" means either $19 million, or such lower number as shall be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. "Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously issued Bonds, (ii) from interest earnings on the Construction Fund actually eamed prior to City of Chula Vista Community Facilities District No. 08-1 _Otay Ranch Village Six 11-25-02 age the date of prepayment and (iii) directly from Special Tax revenues and (b) the mount of the proceeds of all previously issued Bonds then on deposit in the Construction Fund. "Outstanding Bonds" means all previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal 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 for an Assessor's Parcel of Developed Property, Undeveloped Property for which a building permit has been issued, or Provisional Undeveloped Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of such Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, however 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, which can be collected prior to preparing such calculation. The prepayment amount shall be calculated as summarized below (capitalized terms as defined below): Total: Bond Redemption Amount plus plus plus plus less less equals Redemption Premium Future Facilities Amount Defeasance Amount Prepayment Fees and Expenses Reserve Fund Credit Capitalized Interest Credit Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Step No.: For Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For 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, issued for that Assessor's Parcel. For Provisional Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for City of Chula Vista Community Facilities' District No. 08-1 ?ray Ranch Village Six 11 ~25-02 age 10. 11. 12. such Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to step ! by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within CFD-08-I excluding any Assessor's Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. Multiply the quotient computed pursuant to step 2 by the principal amount of the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). Multiply the Bond Redemption Amount computed pursuant to step 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"). If all the Bonds authorized to be issued for CFD-08-I have not been issued, compute the Future Facilities Costs. Multiply the quotient computed pursuant to step 2 by the mount if any, determined pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to such Assessor's Parcel (the "Future Facilities Amount'S. 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. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year, which have not yet been paid. Determine the fees and expenses of CFD-08-I, including but not limited to, the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds from the proceeds of such prepayment, and the cost of recording any notices to evidence the prepayment and the redemption (the "Prepayment Fees and Expenses") Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the prepayment amount less the Prepayment Fees and Expenses, as determined pursuant to step 10, from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount computed pursuant to step i 1 (the "Defeasance Amount"). City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Villa~,e Six 11-25-02 13. 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 amotmt 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. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to step 2 by the expected balance in the capitalized interest fund after such first interest payment (the "Capitalized Interest Credit"). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to steps 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13, and 14 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 step 10 shall be retained by CFD-08-I. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. 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 step 9 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 allo~ved unless the amount of Maximum Annual Special Taxes that may be levied on Taxable Property within CFD-08-I, both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. City of Chula Vista Community Facilities District No. 08 1 Otay Ranch Village Six 11-25-02 Pa,ge 12 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued may be partially prepaid. The amount of the prepayment shall be calculated as in Section H.1, except that a partial prepayment shall be calculated according to the following formula: PP = (PE x F) + A These terms have the following meaning: PP = the partial prepayment PE -- the Prepayment Amount calculated according to Section H. 1, minus Prepayment Fees and Expenses determined 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 Prepayment Fees and Expenses determined 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 Armual Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to step 16 of Section H.1, and (ii) indicate in the records of CFD-08-1 that there has been a partial prepayment of the Maximum Annual Special Tax and that a portion of the Maximum Annual Special Tax equal to the outstanding percentage (1.00 - F) of the remaining Maximum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. I. TERM OF MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2003-2004 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for a period no longer than the 2039-2040 Fiscal Year. City of Chula Vista Community Facilities District No. 08-1 Otay Ranch Village Six 11-25-02 0 ~W~ o o o~ U 0 >- Z Ozw- % <z~ ~X U-- r~ (..~ E ~ 00 :~ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING NECESSITY TO 1NCUR A BONDED INDEBTEDNESS FOR COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX), SUBMITTING TO THE QUALIFIED ELECTORS OF SUCH COMMUNITY FACILITIES DISTRiCT SEPARATE PROPOSITIONS TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN, TO AUTHORIZE SUCH COMMUNITY FACILITIES DISTRICT TO INCUR A BONDED INDEBTEDNESS SECURED BY THE LEVY OF SUCH SPECIAL TAX TO FINANCE CERTAIN TYPES OF PUBLIC FACILITIES AND TO ESTABLISH AN APPROPRIATIONS LIMIT FOR SUCH COMMUNITY FACILITIES DISTRICT, 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 thc issuance of bonds to be secured 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 1, Division 2, Title 5 of the Government Code of the State of California (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law"). This Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES D1STRICT NO. 08-1 (OTAY RANCH 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 purposes for such debt, and to authorize the submittal of a proposition to the qualified electors of the District, being the landowners of the District, all as authorized and required by the Community Facilities District [,aw; WHEREAS, the City Council further desires to authorize the submittal of 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 speci fled in the Act pertaining to the conduct of the election and the requirements for impartial legal analysis and arguments have also been ~vaived 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 thc election. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1 SECTION 1. RECITALS. The above recitals are all tree and correct. 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 authorized under the terms and provisions of the Community Facilities District Law, in order to finance the types of public facilities described in Exhibit A attached hereto and incorporated herein by this reference. SECTION3. BOND INDEBTEDNESS. The specific purposes for the proposed bonded indebtedness are 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 Government Code Section 53345.3. SECTION 4. TERRITORY TO PAY FOR BONDED INDEBTEDNESS. This City Council determines that the property within the entire District will pay for the bonded indebtedness referred to in Section 3 above. A general description of the District is as Follows: All property within the boundaries of Community Facilities District No. 08-1 (Otay Ranch Village Six), as shown on a map as previously approved by the City Council, such map designated by the name of this District, a copy of which is on file in the Office of the City Clerk. SECTION 5. BOND AMOUNT. The amount of the proposed bonded indebtedness, including the cost of the Facilities, together with all incidental expenses, shall not exceed $25,000,000. SECTION 6. BOND TERM This City Council hereby further determines that the maximum tcrm 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 am~um 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 I 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. B. The proceeds of any such bonded indebtedness shall be applied only to the applicable spccific purposes identified in Section 3. 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. SECTION 8. ELECTION. The propositions related to the incurring of the bonded indebtedness 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 January 21, 2003, and such election shall be a special election to be conducted by the City Clerk (the "Election Official"). If any proposition for the levy of the special tax and any proposition for incurring the bonded indebtedness receives 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 the applicable purposes set forth herein and the applicable special tax may be levied as provided in Resolution Forming and Establishing Community Facilities District No. 08-I (Otay Ranch Village Six) and Authorizing the Submittal of Special Taxes to the Qualified Electors Thereof. If the proposition to establish the appropriations limit for the District receives the approval of a majority of the votes cast on such proposition, such appropriations limit shall be established. SECTION 10. BALLOTS. The ballot proposals to be submitted to the qualified voters of the District at the election shall generally be as follows: PROPOSITION A Shall the City of Chula Vista Community Facilities District No. 08-1 (Otay Ranch Village Six), subject to accountability measures set forth in Resolution No. , levy a special tax throughout such district pursuant to the rale 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 the types of facilities described in such resolution? PROPOSITION B Shall the City of Chula Vista Community Facilities District No. 08-I (Otay Ranch Village Six), subject to accountability measures set forth in Resolution No. , incur a bonded indebtedness of such district in an amount not to exceed $25,000,000 for the specific purposes set forth in such resolution? PROPOSITION C Shall the City of Chula Vista Community Facilities District No. 08-I (Otay Ranch Village Six) establish an Article XIIIB appropriations limit equal to $25,000,000'? SECTION 10. VOTE The appropriate nlark placed on the line in front of the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed on the line in front of the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. SECTION 11. ELECTION PROCEDURE The Election Official is hereby authorized to take any and all steps necessary for the holding of such election. The Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of the election, which services shall include, but not be limited to, the following activities as are appropriate to the election: Prepare and furnish to the election officers necessary election supplies for the conduct of the election. 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. Cause the official ballots to be delivered to the qualified electors or their authorized representatives, as required by law. E. Receive the returns of thc election and supplies. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. G. Canvass the returns of the election. Furnish a tabulation of the number of votes given in the election. 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. 4 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. Lippitt, Director of Public Works John Kaheny, C~"iy Attorney 5 EXHIBIT A DESCRIPTION OF TYPES OF FACILITIES The types of public facilities authorized to be financed from the proceeds of bonds issued by 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 COMMUNITY FACILITIES DISTRICT MELLO-ROOS COMMUNITY FACILITIES ACT 1982 SPECIAL TAX REPORT COMMUNITY FACILITIES DISTRICT NO. 08-1 OTAY RANCH VILLAGE SIX For the City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 CI'IY OF CHULA VISTA Prepared by McGill Martin Self, Inc. 344 F Street Suite 100 Chula Vista, California 91910 December 17, 2002 TABLE OF CONTENTS Page 1. INTRODUCTION ................................................................................. 1 I1. PROJECT DESCRIPTION ......................................................................... 2-3 II1. DESCRIPTION AND ESTIMATED COST OF PROPOSEI) FACILITIES ........................ 3-4 A. Description of Proposed Public Improvements ................................... 3-4 B. Estimated Cost of Proposed Public Improvements .............................. 4 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES .................................... 4 A. Projected Bond Sales ............................................................... 4-5 B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness ......................................................................... 5 C. Incidental Expenses to be Included in the Annual Levy of Special Taxes. 5 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX ..................... 5-6 A. Explanation for Special Tax Apportionment .................................... 6-7 B. Assigned Special Tax Rates ................................................ 7 C. Backup Special Tax ................................................................ 7 D. Maximum Annual Special Tax Rate ................................................. 7 E. Accuracy of Information ........................................................... 7-8 VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT .................................. 8 VII. GENERAL TERMS AND CONDITIONS ....................................................... 8 A. Substitution Facilities .............................................................. 8 B. Transportation Enhancement Facilities .......................................... 8 C. Appeals .............................................................................. 8 EXHIBITS Exhibit A Exhibit B Exhibit C Recorded Boundary Map Rate and Method of Apportionment 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. 08-I (Otay Ranch Village Six) shall hereinafter be referred to as: "CFD-08-I"; and WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed Community Facilities District No. 08-1 (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 apportionment 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. CommitniO~ Facilities District No 08-1 Page 1 Olay Ranch Village Six December 2002 11. PROJECT DESCRIPTION This Community Facilities District No. 08-I (CFD-08-I) encompasses approximately 189 gross acres of land located in south San Diego County within the City of Chula Vista and is an area knoxvn as "Otay Ranch Village Six". Refer to Exhibit A for a reduced copy of the Recorded Boundary Map. Of this acreage, approximately 93 acres is expected to be developed by several affiliated merchant builders for approximately 1,353 residential units, 2.9 acres of commercial development, 7.5 acres for Community Facilities, along with 7.5 acres for a park and 7.7 acres slated for an elementary school. The property within Village Six that is owned by Otay Project, LP and which will be included in CFD-08-I is divided into two distinct sections, one in the Southwest Quadrant and another in the Northeast Quadrant of Village Six. CFD-08-I is divided into two tax zones (Zone A and Zone B), for Special Tax consistency purposes. Refer to Exhibit A for the location of Zones A and B. Zone A Zone A consists of Planning Areas R-2A, R-2B, R-5A, R-5B and R-9A. Ail of these planning areas are currently sold to or are planned to be sold to affiliated merchant builders. This Tax Zone consists of all single family detached units with Planning Area R-2A consisting of 92 units, Planning area R-2B consisting of 106 units, Planning area R-5A consisting of 51 units, Planning area R-5B consisting of 55 units, Planning area R-9A Phase I consisting of 99 units and Planning area R-9A Phase 2 consisting of 40 units. At build-out, it is expected that Zone A will consist of approximately 443 Single Family Detached Units. The Single Family uses are anticipated to generate approximately 961,098 square feet of residential building square footage. The total taxable acreage for this Tax Zone is approximately 45.53 acres. Zone B Zone B consists of Planning Areas R-7A, R-7B, R-8, R-9B, R-9D, S-l, C-1 and CPF-1 and CPF 1-x. All of these planning areas are currently sold to or are planned to be sold to affiliated merchant builders. This Tax Zone consists of single family detached units, single family attached units, apartments, commercial property, a park, a school, and Community purpose facilities. Planning Area R-7A consists of 92 single family attached units, Planning Area R-7B consists of 201 single family attached units, Planning Area R-8 consists of 336 Apartments, Planning Area R-9B consists of 159 single family attached and 73 single family detached units, Planning Area R-gD consists of 49 single family detached units, S-1 consists of an Elementary School Site, C-1 consists of a Commercial site, CPF-1 consists of a Church and CPF-Ix consists of a proposed Swim Center. At build-out, it is expected that Zone B will consist of approximately 73 single family detached units, 501 single family attached units, 336 Apartments, a 2.9 acre commercial site, a 7.5 acre ( ommuniO' Facilities District No 08 I Page 2 Ora)' Ranch Village Six December 2002 park, a 7.7 acre school site, a 4.5 acre church site and a 1.5 acre swim club site. The Single Family Uses are anticipated to generate approximately 1,075,040 square feet of residential building square footage. The total taxable acreage for this Tax Zone is approximately 47.13 acres. Special taxes for CFD No. 08-I (Otay Ranch Village Six) for Zone A and Zone B shall be levied to Taxable Property to satisfy the Special Tax Requirement as follows: ,, First, to Developed Property within Zone A and Zone B up to the Maximum Annual Special Tax; · Second, if necessary, to Undeveloped Property within Zone A and Zone B up to the Maximum A~mual Special Tax for Undeveloped Property; · Third, if necessary, the Maximum Annual Special Tax within Zone A and Zone B derived by the application of the Backup Special Tax increased proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax and; ,, Fourth, if necessary, Special Tax within Zone A and Zone B increased proportionately on all Provisional Undeveloped Property up to the Maximum Annual Special Tax. Ill. 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-08-I is authorized to own, construct, or finance, and which are required, in part, to adequately meet the needs of CFD-08-1. The approved Acquisition and Financing Agreement sets the priority for the financing of these facilities. 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 facilities described herein are those currently expected to be required to adequately meet, in part, the needs of CFD-08-1. Because the actual needs of CFD-08-I arising as development progresses therein may differ from those currently anticipated, CFD-08-I reserves the right to modify the priority of the facilities proposed herein to the extent CFD-08-1 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 be ('ommu~tit3; Facilities Dislric! No 08 I Page 3 Ora), Ra~lch V~llage Stx December 2002 apportioned as described in the Rate and Method of Apportionment (RMA) of the Special Tax for CFD-08-I. Proceeds of the proposed bonded indebtedness of CFD-08-I will be used to finance backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, utilities, etc.), public facilities, DIF Improvements and Traffic Enhancement Facilities. Following is a general description of the proposed facilities: · La Media Road · West Olympic Parkway (Portion) · Otay Lakes Road · Birch Road · East Palomar Street · ViewPark Street · Magdalena Avenue · Santa Venetia Street · "Traffic Enhancement Facilities" · Facilities to be financed by Development Impact Program Fees 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. TABLE1 Proposed Public Facilities Facilities Improvements Estimated Cost · La Media Road · West Olympic Parkway (Portion) · Otay Lakes Road · Birch Road · East Palomar Street · ViewPark Street · Magdalena Avenue · Santa Venetia Street ('ommunity Facilities Distr&! No 08 I Page 4 Ot~o, Ranch Vdlage Six August 2002 · I IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES Projected Bond Sale For CFD-08-I there is proposed to be one issuance of bonds. The bond amount for CFD- 08-I will be approximately $18.5 million, which will finance approximately $14.7 million in facilities. The bonds for are presently planned to be sold in the Spring of 2003. The bonds issued by CFD-08-I 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. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness for CFD-08-I Pursuant to Section 53345.3 of the Act, bonded indebtedness may include all 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 fi.om 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 issuance expenses are estimated at 4 % of the face mnount of the bonds. Incidental Expenses to be Included in the Annual Levy of Special Taxes for CFD-08-I. 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 l~acilities; 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, completi6n, and inspection of the authorized work; and the retirement of existing bonded indebtedness. While the actual cost of administering CFD-08-I 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. V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX All of the property located within CFD-08-1, unless exempted by law, shall be taxed for the purpose of providing necessary facilities to serve CFD-08-I. 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 (RMA) provides information sufficient to allow each property owner within CFD-08-I to estimate the maximum annual Special Tax he or she will be required to pay. Sections A through C below, provide additional information on the Rate and Method of Apportionment (RMA) of the Special Tax for CFD-08-I. 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-08-I. 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 pamels 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-08-I. The r}~ajor assumption inherent in the Special Tax 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 Community Facilittex Dt,strict No. 08-I Page 6 Otto' Ranch l/ill~g~, 3).~ August 2002 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. 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-08-i shall be levied to Taxable Property to satisfy the Special Tax Requirement as outlined in the RMA for CFD-08-I. The Land Use Class Categories of Taxation have been established for CFD-08-I. The categories are defined as folloxvs: Residential Developed Parcels (single and multi-family residences) are taxed on the square footage of the building; and Non-Residential Developed Parcels are taxed based on the acreage of the parcel. Based on the types of public facilities that are proposed for CFD-08-I 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-08-I can be considered fair and reasonable. Assigned Special Tax Rates Exhibit C lists the Assigned Special Tax rates that are proposed to be levied against Residential Property and Non Residential Property within CFD-08-I. This is the proposed Special Tax for Developed Property to meet the debt service obligation to pay for the Bonds. Backup Special Tax When a Final Subdivision Map is recorded within CFD-08-I, the Backup Special Tax for Assessors Parcels of Developed Property classified as Residential Property or Non- Residential Property ~vill be determined pursuant to Section C.l.b of the RMA. This Special Tax can be used if the Assigned Special Tax does not cover the current debt service obligation. Maximum Annual Special Tax Rate The City Council will annually determine the actual amount of the Special Tax levy on property based on the method described in the RMA's and subject to the Maximum Annual Special Tax. The Maximum Annual Special Tax Rate for Developed Residential Property is the greater of the Assigned Special Tax or the Backup Special Tax. The Otoy Ra,ch Vdlage Str December 2002 to Maximum Annual Special Tax for Non-Residential, Undeveloped and Provisional Undeveloped Property is $14,981 per Acre for Zone A and $24,418 per Acre for Zone B. The City will levy a Special Tax to the extent necessary, sufficient to meet the Special Tax Requirement. Accuracy of Information In order to establish the Assigned Special Tax rates and the Backup Special Tax as set forth in the Rate and Method of Apportionment for CFD-08-I, McGill 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-08-I, including the inability to meet the financial obligations of CFD-08-1. VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of' CFD-08-I include all land on which the Special Taxes may be levied. The Recorded Boundary Map of the area included within CFD-08-I 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. Transportation Enhancement 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 Transportation Enhancement Facilities. This could result in the revision of' the facilities priority structure in the Acquisition and Financing Agreement 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 ('ommu~ity Facilities District No 08 ] Page 8 Otqv Ra~lch Village Sir August 2002 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 City Administrator verify that the amount of the Special Tax should be modified or changed, then, as appropriate, the Special Tax levy shall be corrected, pursuant to Section F. of the RMA. J:\Attorney\RESO\CFD 08-1 SPECIAL TAX REPORT.doc ('ommuniO' Facilities District No 08 ! Page 9 Olaf Ranch Village Str December 2002 7 EXHIBIT A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX) RECORDED BOUNDARY MAP ('¢~mmunitv F¢tci/ities Dislricl No 08 ! Page 10 Ota~' Ranth Vdlage Six August 2002 -7 EXHIBIT B CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX) RATE AND METHOD OF APPORTIONMENT ('ommunit); Facilities District No 08-1 Page 11 Ora), Ratlch Fillage S~x December 2002 EXHIBIT C CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-I (OTAY RANCH VILLAGE SIX) ASSIGNED SPECIAL TAX RATES FOR DEVELOPED PROPERTY Annual Special Tax for Developed Property in Land Use Class 1 Community Facilities District No. 08-I Residential Developed Parcels Maximum Annual Special Tax Land Use Class 1 Zone A $800 per unit plus $.27 per square foot of Residential Floor Area Land Use Class I - Zone B $800 per unit plus $.27 per square foot of Residential Floor Area Aunual Special Tax for Developed Property in Land Use Class 2 Community Facilities District No. 08-I Non-Residential Developed Parcels Maximum Annual Special Tax Land Use Class 2 Zone A $6,000 per acre of Non-Residential Property Land Use Class 2 Zone B $6,000 per acre of Non-Residential Property ('ommunil), Fatilitte.s DiMricl No 08 I Page ]2 Oral Ranch Village Sir August 2002 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 08-1 (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. 08-I (Otay Ranch Village Six) collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property", "Undeveloped Property", and "Provisional Undeveloped Property" as described below. All of the Taxable Property in CFD-08-1, 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: "'A' Map" shall mean a master final subdivision or parcel map, filed in accordance with the Subdivision Map Act and the Chula Vista Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into "super block" lots corresponding to units or phasing of a combination of units as shown on such tentative map and which may further show open space lot dedications, backbone street dedications and utility easements required to serve such "super block" lots. "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, parcel map, condominium plan, record of survey, or other recorded document creating or describing the land area. 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 Fees and Expenses" means the actual or reasonably estimated costs directly related to the administration of CFD-08-I including, but not limited to, the following: the costs of computing thc 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-08-I, or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-08-I, 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-08-I, or any designee thereof related to any appeal of the levy or application of the Special Tax; and the CiO, q/ Chula Vista 11-25-02 (?o~nmunity Facilitie~ Distric! No 08-1 Otay Ranch Village Six Page I 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-08-I, for any other administrative purposes of CFD-08-I, including, but not limited to attorney's fees and other costs related to commencing and pursuing to completion any foreclosure on an Assessor's Parcel with delinquent Special Taxes. "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 designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Class of Developed Property as determined in accordance with Section C. 1 .a. "Available Funds" means (a) 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, (b) delinquent Special Tax payments not rcquired to fund the Special Tax Requirement for any preceding Fiscal Year,(c) that portion of Special Tax prepayments allocated to the payment of interest on Bonds, and (d) 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 amount set forth in Section C. 1.b. "Bonds" means any bonds or other debt (as defined in the Act), whether in one or more series, issued or incurred by CFD-08-I under the Act. "Bond Year" means a one-year period beginning on September 2® in each year and ending on September 1st in the following year, unless defined otherwise 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-08-I" means City of Chula Vista Community Facilities District No. 08-1. "City" means the City of Chula Vista. "Community Purpose Facility Property" means all Assessor's Parcels ~vhich are (a) classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2002-2883 as amended on November 5, 2002 or (b) designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as a community purpose facility. "Council" means the City Council of the City, acting as the legislative body of CFD-08-I. City of Chula Vista 11-25-02 Community Facilitie~ District No. 08 l Otay Ranch I/illage St.'; Page 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 in which the Special Tax is being levied. "Exempt Property" means property not subject to the Special Tax due to its classification as either Public Property, Property Owner Association Property, Community Purpose Facility Property, public or utility easements in accordance with section E. 1. "Final Subdivision Map" means a subdivision of property, created by recordation of a final subdivision 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 Table 1 of Section C.l.a. "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. "Maximum Annual Special Tax" means the maximum annual Special Tax, determined in accordance with the provisions of Section C, 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(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Open Space" means property within the boundaries of CFD 08-I which (a) has been designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as open space, (b) is classified bY the County Assessor as open space (c) has been irrevocably offered for dedication as open space, prior to June 1st of the preceding Fiscal Year, to the federal government, the State of California, the County, the City, any other public agency or (d) is encumbered by an easement or other restriction required by the City limiting the use of such property to open space. "Outstanding Bonds" means all Bonds, which remain outstanding as defined in the Indenture. City oj Chula Vista l 1-25-02 Community Facilities District No 08-1 Ot~3, Ranch l/illage Six Page 3 "Property Owner Association Property" means any property within the boundaries of CFD-08-I which is (a) owned by a property owner association or (b) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property o~vner association property. As used in this definition, a Property Owner Association Property includes any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or Backup Special Tax is equal for all Assessors' Parcels of Developed Property within CFD-08-1. For Undeveloped Property or Provisional Undeveloped Property "Proportionately" means that the ratio of the actual Special Tax levy per Acre to the Maximum Annual Special Tax per Acre is equal for all Assessor's Parcels of Undeveloped Property and equal for all Assessor's Parcels of Provisional Undeveloped Property within CFD-08-I. "Provisional Undeveloped Property" means all Assessor's Parcels of Public Property, Property Owner Association Property, Community Purpose Facility Property, Open Space or other property that would otherwise be classified as Exempt Property pursuant to the provisions of Section E, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property below the required minimum acreage as set forth in Section E.1 for Zone A or Zone B as applicable. "Public Property" means any property within the boundaries of CFD-08-1 that ~vhich (a) is owned by a public agency, (b) has been irrevocably offered for dedication, prior to June 1st of the preceding Fiscal Year, to a public agency or (c) is designated with specific boundaries and acreage on an 'A' Map or Final Subdivision Map as property which will be owned by a public agency. For purposes of this definition, a public agency includes 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 initial building permit(s) issued for such structure. "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 of Special Tax revenue required in any Fiscal Year for CFD-08-1 to: (i) pay annual debt service on all Outstanding Bonds 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; (iii) pay CiO: of Chula Fi3ta 11-25-02 ('ommuni(v Facilities Dixtrk:t No. Otay Ranch k¥1lage Six Page 4 Administrative Fees and Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD-08-I provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property; (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-08-I that 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. "Zone A" means a specific geographic area as depicted in Exhibits A and B attached hereto. "Zone B" means a specific geographic area as depicted in Exhibits A and B attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within CFD-08-I shall be (a) categorized as being located in either Zone A or Zone B, (b) classified as Developed Property, Undeveloped Property or Provisional Undeveloped Property and (c) subject to the levy of annual Special Taxes determined pursuant to Sections C and D. Furthermore, all Developed Property shall then be classified as Residential Property or Non-Residential Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 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 which follows or (2) the Backup Special Tax computed pursuant to b. which follows. a. Assigned SpeciaiTax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. Ci(v of Chula Vista 11-25-02 Cotnmunity Facilities District No. 08-1 Ota~, Ranch l~illage Six Page 5 TABLE 1 Assigned Special Tax for Developed Property within Zone A and Zone B: Land Use Class Description Assigned Special Tax 1 Residential Property $800 per unit plus $.27 per square foot of Residential Floor Area 2 Non-Residential $6,000 per Acre Property b. Backup SpecialTax When a Final Subdivision Map is recorded within Zone A or Zone B the Backup Special Tax for Residential Property, Non-Residential Property and Undeveloped Property shall be determined as follows: For each Assessor's Parcel of Residential Property or Undeveloped Property to be classified as Residential Property upon its development within the Final Subdivision Map area, the Backup Special Tax shall be the rate per Lot calculated according to the following formula: Zone A $ 14,981x A L Zone B $ 24,418 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 Non-Residential Property or Undeveloped Property to be classified as Non-Residential Property upon the development thereof within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $14,981 for Zone A and $24,418 for Zone B by the total Acreage of all CiO, q{ Chula l/ista 11-25-02 Ca~nmuniO~ Facilities District No. 08 1 Otrty Ranch l/illage Six Page 6 Non-Residential Property and Undeveloped Property to be classified as Non- Residential Property upon the development thereof within the Final Subdivision Map area. Notwithstanding the foregoing if an Assessor's Parcel of Residential Property, Non- Residential Property or Undeveloped Properly for which the Backup Special Tax has been determined are subsequently changed or modified by recordation of a new or amended Final Subdivision Map, then the Backup Special Tax applicable to such Assessor's Parcel shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. 2. Undeveloped Property and Provisional Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel of Undeveloped Property or Provisional Undeveloped Property shall be $14,981 per Acre for Zone A and $24,418 per Acre for Zone B. D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-04 and for each following Fiscal Year, the Council shall determine the Special Tax Requirement and shall levy the Special Tax until the amount of Special Taxes equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied Proportionately on all Developed Property within Zone A and Zone B 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 all Undeveloped Property within Zone A and Zone B, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. In determining the Acreage of an Assessor's Parcel of Undeveloped Property for purposes of determining the annual Special Tax to be levied on such Assessor's Parcel, the CFD Administrator shall not include any Acreage shown on any applicable tentative subdivision map or other land use entitlement approved by the City that designates such Acreage for a use that would be classified as Open Space, Property Owner Association Property, Community Purpose Facility or Public 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 of Developed Property 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 Developed Property.. ('it3, q/ Chula Vista 11-25-02 (~rnmuniO, Facilities District No 08-1 Otay Ranch Fillage Six Page 7 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 all Provisional Undeveloped Property at a rate 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 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 The CFD Administrator shall classify the following as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, (iv) Open Space and (v) 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 40.98 Acres in Zone A and 42.43 Acres in Zone B. Property which cannot be classified as Exempt Property because such classification ~vould reduce the Acreage of all Taxable Property to less than 40.98 Acres in Zone A and 42.43 Acres in Zone B will be classified as Provisional Undeveloped Property and shall be taxed pursuant to the fourth step of Section D. 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. The Maximum A~mual Special Tax obligation for any property which would be classified as Public Property upon its transfer or dedication to a public agency but which is classified as Provisional Undeveloped Property pursuant to paragraph 1 of Section E shall be prepaid in full by the seller pursuant to Section H.1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Special Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Provisional Undeveloped Property. If the use of an Assessor's Parcel of Exempt Property changes so that such Assessor's Parcel is no longer classified as one of the uses set forth in paragraph I that would make such Assessor's Parcel eligible to be classified as Exempt Property, such Assessor's Parcel shall cease to be classified as Exempt Property and shall be deemed to be Taxable Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who 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 Ci(v of Chuh~ Vista 11-25-02 Community Facilities District No. 08-1 Otay Ranch Village Six Page 8 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 CFD-08-1 a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. G. MANNEROF 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-08~I, 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: "CFD Public Facilities" means those public facilities authorized to be financed by CFD- 08-1. "CFD Public Facilities Costs" means either $19 million, or such lower number as shall be determined either by (a) the CFD Administrator as sufficient to finance the CFD Public Facilities, or (b) the Council concurrently with a covenant that it will not issue any more Bonds to be secured by Special Taxes levied under this Rate and Method of Apportionment. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct the CFD Public Facilities. "Future Facilities Costs" means the CFD Public Facilities Costs minus that (a) portion of the CFD Public Facilities Costs previously funded (i) from the proceeds of all previously issued Bonds, (ii) from interest earnings on the Construction Fund actually earned prior to City of Chula Vista 11-25-02 C~mmunity Facilitiex Di.~trict Na. 08-1 Otr(r Ranch I/illage Six Page 9 the date of prepayment and (iii) directly from Special Tax revenues and (b) the amount of the proceeds of all previously issued Bonds then on deposit in the Construction Fund. "Outstanding Bonds" means ali previously issued Bonds which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date ~vith 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 for an Assessor's Parcel of Developed Property, Undeveloped Property for which a building permit has been issued, or Provisional Undeveloped Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of such Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, however 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, which can be collected prior to preparing such calculation. The prepayment amount shall be calculated as summarized below (capitalized terms as defined below): Total: Bond Redemption Amount plus plus plus plus less less equals Redemption Premium Future Facilities Amount Defeasance Amount Prepayment Fees and Expenses Reserve Fund Credit Capitalized Interest Credit Prepayment Amount As of the proposed date of prepayment, the Prepayment Amount (defined below) shall be calculated as follows: Step No.: For Developed Property, compute the Maximum ArmuaI Special Tax for the Assessor's Parcel to be prepaid. For 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, issued for that Assessor's Parcel. For Provisional Undeveloped Property to be prepaid, compute the Maximum Annual Special Tax for CiO' oj Chula Fista 11-25-02 ComJnttt~ity Factll'tie,x Di3tric! No 08 I Ota), Ranch ~illage Six Page 10 10. 11. 12. such Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to step 1 by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within CFD-08-[ excluding any Assessor's Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. Multiply the quotient computed pursuant to step 2 by the principal amount of the Outstanding Bonds to compute the amount of Outstanding Bonds to be retired and prepaid (the "Bond Redemption Amount"). Multiply the Bond Redemption Amount computed pursuant to step 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"). If all the Bonds authorized to be issued for CFD-08-I have not been issued, compute the Future Facilities Costs. Multiply thc quotient computed pursuant to step 2 by the amount if any, determined pursuant to step 5 to compute the amount of Future Facilities Costs to be allocated to such Assessor's Parcel (the "Future Facilities Amount'). 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. Confirm that no Special Tax delinquencies apply to such Assessor's Parcel. Determine the Special Taxes levied on the Assessor's Parcel in the current Fiscal Year, which have not yet been paid. Determine the fees and expenses of CFD-08-1, including but not limited to, the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds from the proceeds of such prepayment, and the cost of recording any notices to evidence the prepayment and the redemption (the "Prepayment Fees and Expenses") Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the prepayment amount less the Prepayment Fees and Expenses, as determined pursuant to step 10, from the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. Add the amounts computed pursuant to steps 7 and 9 and subtract the amount computed pursuant to step 11 (the "D~feasance Amount"). City of Chula Vista 11-25-02 (bmmunity Facilities District No. 08-1 Otay Ranch Village Six Page l I 13. 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. 14. If any capitalized interest for the Outstanding Bonds will not have been expended at the time of the first interest payment following the current Fiscal Year, a capitalized interest credit shall be calculated by multiplying the quotient computed pursuant to step 2 by the expected balance in the capitalized interest fund after such first interest payment (the "Capitalized Interest Credit"). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to steps 3, 4, 6, 10, and 12, less the amounts computed pursuant to steps 13 and 14 (the "Prepctyment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to steps 3, 4, 12, 13, and 14 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 step 10 shall be retained by CFD-08-I. The amount computed pursuant to step 6 shall be deposited in the Construction Fund. 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 step 9 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 Iien 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 Atmual Special Taxes that may be levied on Taxable Property within CFD-08-1, both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. City of ¢~ula l/ista 11-25-02 Community Facilities District No 08 I Otoy Ranch I~illage Six Page 12 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 - (P~ x F) + A These terms have the following meaning: PP - the partial prepayment P} the Prepayment Amount calculated according to Section H. 1, minus Prepayment Fees and Expenses determined 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 thc Prepayment Fees and Expenses detemfined pursuant to step 10. The owner of an Assessor's Parcel who desires to partially prepay the Maximum Annual Special Tax shall notify the CFD Administrator of (i) such owner's intent to partially prepay the Maximum Annual Special Tax, (ii) the percentage by which the Maximum Annual Special Tax shall be prepaid, and (iii) the company or agency that will be acting as the escrow agent, if applicable. The CFD Administrator shall provide the owner with a statement of the amount required for the partial prepayment of the Maximum Annual Special Tax for an Assessor's Parcel within 30 days of the request and may charge a reasonable fee for providing this service. With respect to any Assessor's Parcel that is partially prepaid, the City shall (i) distribute the funds remitted to it according to step 16 of Section H.1, and (ii) indicate in the records of CFD-08-1 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 Maxlmum Annual Special Tax shall continue to be authorized to be levied on such Assessor's Parcel pursuant to Section D. i. TERM OF MAXIMUM ANNUAL SPECIAL TAX The Maximum Annual Special Tax shall be levied commencing in Fiscal Year 2003-2004 to the extent necessary to fully satisfy the Special Tax Requirement and shall be levied for a period no longer than the 2039-2040 Fiscal Year. J ',Attorney\RESO\CFD 08-I RMA.doc Ci0' oj Chula Vista 11-25~02 Community Facilities District Nc). 08-1 Ot~O, Ranch [dlage Six Page 13 COUNCIL AGENDA STATEMENT Item ~ Meeting Date 1/14/03 ITEM TITLE: Public Heating to take public testimony to change and modify the types of public facilities authotized to be financed by Community Facilities District No. 2001-2 (McMillin-Otay Ranch Village Six) A) Resolution of the City Council of the City of Chula Vista, California in its capacity as the legislative body of Community Facilities District No. 2001-2 (McMillin-Otay Ranch - Village Six), making certain determinations and authotizing the submittal of the proposed modifications to the facilities authorized to be financed by such Community Facilities district to the qualified electors thereof SUBMITTED BY: REVIEWED BY: Director of EngineTring~/ City Manager (4/5ths Vote: Yes No X ) On November 26, 2002 Council approved the intention of consideration to changes and modification to the types of public facilities authorized to be financed by Community Facilities District No. 2001-2 (McMillin-Otay Ranch Village Six). Tonight's action will continue the formal proceedings leading to the change and modification to the types of public facilities authotized to be financed by Community Facilities District No. 2001-2, subject to the approval of the qualified electors. RECOMMENDATION: That Council: Open the Hearing, take public testimony, close the public hearing; Approve the Resolution (A) for the consideration to change and modify the type of public ihcilities authorized to be financed by CFD No. 2001-2 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The public hearing is to be held for the purpose for the consideration to change and modify the type of public facilities authorized to be financed by CFD No. 2001-2. The Resolution of Intention to change and modify the type of public facilities was approved by City Council on November 26, 2002. The McMillin Otay Ranch, LLC had formally requested (letter dated November 7, 2002, Exhibit A) the City for consideration of changes and modification to the types of public facilities authorized to be financed by Community Facilities District No. 2001-2 (the "District") pursuant to the Mello-Roos Act of 1982 1hr the purpose of financing the construction and/or acquisition of certain public improvements serving Village Six of the Otay Ranch. Page 2, Item ~ Meeting Date 1/14/03 The Improvements The City of Chula Vista and the McMillin Otay Ranch, LLC have mutually agreed that by financing the Public Facilities Development Impact Fee (PFDIF) component this will allow the City of Chula Vista to obtain need funds for the type of authorized public facilities stated within the PFDIF Ordinance No. 2320 (such as civic center, fire stations, etc.). If approved, the PFDIF component will also be added to the list of authorized public facilities as an amendment to the Acquisition/Finance Agreement. The developer is proposing the financing of backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, & utilities), eligible Transportation Development Impact Fee (TDIF) and Non- TDIF improvements, as welt as the pedestrian bridge fee. Exhibit B shows an amended list of facilities with a total cost estimate of $16 million. Tonight, Council would be approving the addition of the PFDIF Fee component and will allow certain PFDIF public facilities to be authorized and financed by District. It is estimated that approximately $9.8 million of bonds may be supported by this District, raising an estimated $7.8 million for project proceeds. A final priority list and cost estimate of the improvements eligible for District financing have been described within the Amended Acquisition/Financing Agreement which will brought to the City Council in following months for consideration and approval. Ultimately, as subdivision exactions, the developer will finance improvements that this District cannot finance. The proposed District lies within portions of various Development Impact Fee (DIF) benefit areas (Poggi Canyon Sewer, Transportation, and the proposed Pedestrian Bridge DIFs) which places a cap on the District's ability to finance these improvements. Staff will work with the developer to achieve a balance between DIF and non-DIF improvements within the District. The addition of the PIFDIF facilities will not change the assigned Special Tax as stated within the approved RMA. Resolutions There is only one resolution on today's agenda that, if adopted, will accomplish the following: The RESOLUTION AUTHORIZING THE SUBMITTAL OF THE PROPOSED MODIFICATIONS TO THE FACILITIES AUTHORIZED TO BE FINANCED BY COMMUNITY FACILITIES DISTRICT NO. 2001-2 is the formal action submitting to the Qualified Electors of Community Facilities District No. 2001-2 (CFD No. 2001-2), a Proposition to authorize the submittal of the proposed modifications to the facilities authorized to be financed by Community Facilities District No. 2001- 2(McMillin-Otay Ranch-Portions of Village Six) and performs the following: · Modifies the facilities to be financed by CFD No.2001-2 to include PIFDIF Facilities. · Submits a ballot proposition to the property owners. · 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. Page 3, Item ~ Meeting Date 1/14/03 Future Actions Adoptions of tonight's Resolutions will change and modify the types of Public Facilities to be financed from Community Facilities District No. 2001-2(CFD No. 2001-2), to direct staff to prepare the necessary ballot documents, and to a hold special election on January 21, 2003. The City Council on January 28, 2003 will hear and certify the election results and assuming the ballot measures are passed by the requisite vote of the qualified electors, will adopt the Resolution. FISCAL IMPACT: None, the developer will pay all costs and has deposited money to fund initial consultant costs, and City costs in accordance with the approved Reimbursement Agreement. The City will receive the benefit of the full cost recovery for staff time involved in District formation and administration activities Exhibit A: Exhibit B: Letter from McMillin, dated November 7, 2002 Amended - "List of public facilities J:\Engineer~AGENDA\CAS 1-14-03 re-PFDIF2 doc McMillin Land Development November 7, 2002 Mr. Alex A1-Agha City of Chula Vista Engineering / Public Works Department 276 Fourth Avenue Chula Vista, CA 91914 NO V 6 ,g , ~ Re: McMillin's CFD No. 2001-2 Request for change of proceedings and to amend the Acqusition/Finance Agreement Dear Alex: Please consider this letter as McMillin Otay Ranch, LLC's formal request to initiate change of proceedings and to amend the Acquisition & Finance Agreement and related documents for CFD No. 2001-2 to incorporate the Public Facilities Developer Impact Fee (PF-DIF) for the units within the district as an eligible improvement for funding. Please contact Kelley Thene at (619) 336-3123 if further information or additional documentation is required. Thank you. Regards, McMillin Otay Ranch, LLC D av~' Gatz~e Vice President CC~ Greg Mattson, McGill Martin Self, Inc. Deno Serafini, City of Chula Vista Kelley Thene Frank Zaidle Mc Millin Realw McMillin Mortgage McMOlin Land Developmem McMillin Homes M cMiltin Commercial McMILLIN'S VILLAGE Slx - CFD NO. 2001-2 IMPROVEMENT DESCRIPTION AND ESTIMATED COSTS Improvement Improvement Description Cost Number Estimate 1 Traffic Enhancement Improvements $1,000,00~- 2 La Media South (East Palomar to Olympic Parkway) 1,989,596 3 La Media South Landscaping 509,754 4 Olympic Parkway 3,311,226 5 Olympic Parkway Landscaping 472,374 6 Birch Parkway onsite (Magdalena to SR- 125) 1,619,051 7 Birch Parkway Landscaping 269,200 8 Magdalena St. (Phase 1) 398,738 9 Magdalena St. (Phase 1) Landscaping 61,600 10 Magdalena St. (Phase 2) 332,835 11 I Magdalena St. (Phase 2) Landscaping 53,680 12 Magdalena St. (Phase 3) 187,620 13 La Media Road Onsite Landscaping (between 149,350 Olympic Parkway and Santa Venetia) 14 Santa Venetia Street Onsite Landscaping 269,200 15 La Media Offsite (between Santa Venetia and Birch 869,578 Parkway) and Landscaping 17 Birch Parkway Offsite (between La Media and 1,086,731 i Magdalena) 18 Olympic Parkway Channel 207,139 Additional facilities to be financed from the proceeds 415,000 of Pedestrian Bridge Development Impact Fees payable as a condition of approval of the development of property within CFD 19 Additional facilities to be financed from the proceeds 2,700,000 of Public Facilities Development Impact Fees. payable as a condition of approval of the development of property within CFD Totals $15,902,672 Sources: Developer, McGill Martin Self, Inc. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - VILLAGE SIX), MAKING CERTAIN DETERMINATIONS AND AUTHORIZING THE SUBMITTAL OF THE PROPOSED MODIFICATIONS TO THE FACILITIES AUTHORIZED TO BE FINANCED BY SUCH COMMUNITY FACILITIES DISTRICT TO THE QUALIFIED ELECTORS THEREOOF WHEREAS, the City Council of the City of Chula Vista, California, (the "City Council") previously has previously undertaken proceedings to form Community Facilities District No 2001-2 (McMillin - Otay Ranch - Portions of Village Six) (the "District") and to authorize the levy of special taxes and the issuance by the District of bonds pursuant to the provisions of the Mello-Roos Cmmnunity Facilities Act of 1982, as amended (Government Code Section 53311 and following) (the "Act") and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the "Ordinance") (the Act and the Ordinance may be referred to collectively as the "Community Facilities District Law") to finance the acquisition or construction of certain authorized facilities; and WHEREAS, subsequent to the formation of the District, the master developer of the property within the District requested that that the City Council, acting in its capacity as the legislative body of the District, initiate proceedings to consider modifying the facilities authorized to be financed by the District to add those types of public facilities eligible to be financed from the proceeds of the City of Chula Vista Public Facilities Development Impact Fee (the "PFDIF Facilities"); and WHEREAS, the City Council has adopted its Resolution No. 2002-473 declaring its intention to consider modifying the facilities authorized to be financed by the District to add the PFDIF Facilities to the types of facilities currently authorized to be financed by the District; WHEREAS, notice of a public hearing to consider the modification of the types of facilities authorized to be financed by the District has been given in the form and manner required by the Act; and WHEREAS, it has now been determined that written protests have not been received by 50% or more of the registered voters residing within the District and/or property owners representing more than one-half(I/2) or more of the area of land within the District to the proposed modification of the types of facilities authorized to be financed by the District; and, WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the District for each of the 90 preceding days, this legislative body desires to submit the question of modifying the types of facilities authorized to be financed by the District to include the PFDIF Facilities, such landowners being the qualified electors as authorized by law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - PORTIONS OF VILLAGE SIX), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. SECTION 2. DETERMINATIONS It is determined by this City Council that: all proceedings prior hereto were valid and taken in conformity with the requirements of law, and specifically the provisions of the Act; the proposed modification to the types of facilities authorized to be financed by the District conforms with the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts; less than twelve (12) registered voters have resided within the District for each of the ninety (90) days preceding the close of the public hearing and, consequently, the qualified electors shall be the landowners of the District and each 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 the District; the qualified electors have consented to the shortening of time for conducting the special election to present the question to approve the modification of the types of facilities authorized to be financed by the District, therefore, such special election may be conducted less than 90 following the date of thc public hearing to consider such modification. SECTION 3. PROPOSED MODIFICATION OF TYPES OF FACILITIES AUTHORIZED TO BE FINANCED BY THE DISTRICT. This City Council hereby approves, subject to the approval by the qualified electors of the District, the modification of the types of facilities authorized to be financed by the District to add thc PFDIF Facilities to the types of facilities currently authorized to be financed by the District. SECTION 4. ELECTION The proposition related to the proposed modification of the types of facilities authorized to be financed by the District shall be submitted to the qualified electors of the District, such electors being the landowners, with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within the District. The special election shall be held on January 21,2002 or such other date as the City Clerk, acting as the election official for such special election (the "Election Official"), and all of the qualified electors within the District may B-2 agree and consent. If the proposition to approve the modification of the types of facilities authorized to be financed by the District receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the types of facilities authorized to be financed by the District shall be modified to include the PFDIF Facilities in addition to those facilities currently authorized to be financed by the District. SECTION 5. BALLOT The ballot proposal to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 2001-2 (MCMILLIN - OTAY RANCH - PORTIONS OF VILLAGE SIX) Shall City of Chula Vista Community Facilities District No. 2001-2 (McMillin - Otay Ranch - Portions of Village Six) be authorized to finance the acquisition or construction of PFDiF Facilities as that tem~ is defined in Resolution No. in addition to those types of facilities that are currently authorized to be financed by such community facilities district? SECTION 6. VOTE The appropriate mark placed on the line before the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed on the line before the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. SECTION 7. ELECTION PROCEDURE The Election Official is hereby authorized to take any and all steps necessary for the holding of such election. Said Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of such election, and such services shall include, but not be limited to the following: Prepare and furnish to the election officers necessary election supplies for the conduct of the election. 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 of the Armexation Area. D. Cause the official ballots to be mailed and/or delivered, as required by law. E. Receive the returns of the election. B-3 Sort and assemble the election material and supplies in preparation for the canvassing of the returns. Canvass the returns of the election. Furnish a tabulation of the number of votes given in the election. Make all arranggments and take the necessary steps to pay all costs of the election incurred as a resuli of services performed for the District and pay costs and expenses of all election officials. PREPARED BY: John P. Lippitt, Director of Public Works Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. APPROVED AS TO FORM BY: John Kaheny, City Attorney J:\Attorney\RESO\CFD 2001-2 Declarations.doc B-4 CITY COUNCIL AGENDA STATEMENT ltem: : Meeting Date: 1/14/03 ITEM TITLE: PUBLIC HEARING: PCM-03-17; Consideration of a request by ACI Sunbow to enter into a development agreement with the City of Chula Vista which would allow them to vest their entitlements for industrial development on property in the Sunbow Development located south of Olympic Parkway and east of Brandywine Avenue. - City of Chula Vista. ORDINANCE: approving a Development Agreement between the City of Chula Vista and ACI, Sunbow,LLC for industrial park land within the Sunbow Development. SUBMITTED BY: Director of Planning and Building REVIEWED BY: City Manager,~ (4/5 Vote: Yes'__No_X) This item is for the consideration of the City of Chula Vista to enter into a development agreement with ACI Sunbow, LLC in order to allow them to vest their entitlements for industrial development on property in the Sunbow Development located south of Olympic Parkway. 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 previously adopted Sunbow II Sectional Planning Area (SPA) Final Environmental Impact Report, FEIR-88-01. Thus, no further environmental review or documentation is necessary. RECOMMENDATION: Approve the proposed Development Agreement for ACI Sunbow, LLC, and place the Ordinance on first reading. BOARDS AND COMMISSION RECOMMENDATION: On December 18, 2002, the Planning Commission considered the proposed project and then voted 4-0-1 - 1 to adopt the Planning Commission Resolution recommending that the City Council approve the Ordinance approving the proposed Development Agreement. DISCUSSION: Background: Sunbow is a master planned development located east ofl-805 and south of Telegraph Canyon Road extending southerly of Olympic Parkway. The project was approved in the early nineties for 1,977 dwelling units, a neighborhood shopping center, neighborhood park, fire station, and an industrial Page No. 2, Item: / Meeting Date: 1/14/03 park. The residential and commercial portion of the property is virtually built out and has been developed in accordance with the project approvals. The 64.7-acre industrial park which lies south of Olympic Parkway is yet to be developed (see locator). The tentative map approved on the industrial site will expire in May, 2003. The City's General Plan and the Draft economic development strategy both envision the location of several industrial business parks throughout the City for high technology, biotech and manufacturing uses. These include this site, as well as lands within Otay Ranch and the EastLake Business Park. The development of these lands is part ora comprehensive balanced land use approach for the City and to enable the creation of high paying jobs for Chula Vista and the South Bay. Analysis The development agreement will vest the owners right to develop the subject property to an industrial use subject to complying with ali the requirements of the agreement, existing project approvals and City codes and ordinances. The project will continue to be subject to the City's threshold standards and growth management ordinance. This requirement is applicable to any new development agreement and has been incorporated into all of the City's existing development agreements. Benefits to the City: As consideration for the agreement, the recitals (see pages 2 & 3 of the agreement) acknowledge that the owner has satisfied the following: Advanced $1.5 million for the construction of Olympic Parkway · Contributed $32,240 toward acquisition of mitigation land in O'Neil Canyon · Has advanced $7 million to satisfy their park obligation which includes renovation work to Greg Rogers Park ($600,000), provisions of a 10 acre park site, advanced funds for park construction ($1.5 million), and advanced additional monies ($4.9 million) for other park and recreation purposes within the City. in addition, the owner will be contributing $100,000 for capital improvements to the Chula Vista Nature Center. The contribution will occur within 30 days of the effective date of the Ordinance approving the development agreement. Benefits to the Owner: The industrial property has cleared environmental review and has an approved General Development Plan, Sectional Planning Area Plan and Tentative Subdivision Map. Were it not for the development agreement, the owner would be faced with two alternatives both of which are problematic: 1) refile a new map and possibly be subject to new, as yet unknown, environmental or other development requirements or 2) file a final map at this time (without a contemplated developer or user), have to post bonds for on-site improvement requirements and other requirements of the tentative map etc. Page No. 3, Item: vl Meeting Date: 1/14/03 The result could be premature expenditures that might be lost depending upon the desires and needs of the ultimate industrial developer. CONCLUSION: In sum, the benefits of the agreement are similar to the benefits the City has provided in its various other development agreements and will protect the entitlements for this industrial property. For the reasons noted above, staff recommends approval of the project in accordance with the attached Planning Commission Resolution. FISCAL IMPACT: The fiscal impact of the agreement is substantial to the City as enumerated in the terms of the development agreement including the $100,000 donation to the Nature Center. The ultimate development of the industrial park will also benefit the City in an unknown amount in the future. Attachments I. Locator 2. Planning Commission Resolution PROJECT CHULA VISTA PLANNING AND BUILDING DEPARTMENT· LOCATOR PROJECT PROJECT DESCRIPTION:  APPLICANT: CITY OF CHULAVISTA Proposed development agreement between PROJECT SOUTH OF OLYMPIC PARKWAY ACI Sunbow, LLC and The City of Chula Vista ADDRESS: AND EAST OF BRANDYWINE AVE. to vest entitlements for 64.7 acre Sunbow SCALE: FILE NUMBER: Industrial Park. NORTH No Scale PCM-03-17 ators\PCM0317.cdr 12/03/02 RESOLUTION NO. PCM-03-17 RESOLUTION OF THE CITY OF CHULA VISTA PLANNiNG COMMISSION RECOMMENDiNG THAT THE CITY COUNCIL APPROVE A DEVELOPMENT AGREEMENT BETWEEN ~ CITY OF CHULA VISTA AND ACI, SUNBOW, LLC FOR INDUSTRIAL PARK LAND WITHIN SUNBOW DEVLOPMENT-City of Chula Vista. WHEREAS, on November 26, 2002, the City of Chula Vista filed an application for consideration of a development agreement between the City of Chula Vista and ACI Sunbow, LLC ("Project"); and WHEREAS, the proposed project involves 64.7 acres of industrial park land located south of Olympic Parkway and east of Brandywine Avenue, within the Sunbow Development ("Project Site"); and, x3,q:IEREAS, the project consists of consideration of a Development Agreement between the City of Chula Vista and ACI Sunbow, LLC to allow them to vest entitlements for industrial development on property in the Sunbow Development; 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 previously adopted Sanbow II Sectional Planning Area (SPA) Final Enviroranental Impact Report, FEIR-88-01. Thus, no further environmental review or docmnentation is necessary; and, WHEREAS, the Planning and Building Director set the time and place for a hearing on the Development Agreement 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 hearing was held at the time and place as advertised, namely 6:00 p.m., December 18, 2002, in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said heating was thereafter closed. NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION hereby recommends that the City Council adopt the Development Agreement for ACI Sunbow, LLC, in accordance with the attached Draft City Council Ordinance, and place the Ordinance on first reading. 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 ! 8th day of December 2002 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Madrid, O'Neill, Castaneda, Hom Hall Cortes Steve Castaneda, Vice Chair ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT AGREEMENT BETWEEM THE CITY OF CHULA VISTA AND ACI, SUNBOW LLC. FOR INDUSTRIAL PARK LAND WITHIN THE SUNBOW DEVELOPMENT. RECITALS A. Project Site WHEREAS, the areas of land which are subject to this Ordinance are diagrammatically represented in Exhibit A of the Development Agreement, and for the purpose of general description herein consists of: 64.7 acres south of Olympic Parkway and east of Brandywine Avenue ("Project Site"); and, B. Project; Application for Discretionary Approval WHEREAS, on November 26, 2002, the City of Chula Vista filed an application ' for consideration of a development agreement between the City of Chula Vista and ACI Sunbow, LLC ("Project"); and, C. Prior Discretionary Approval WHEREAS, the development of the Project Site has been the subject matter of various entitlements, including: 1) a General Development Plan, Sunbow II General Development Plan, previously approved by City Council Resolution No. 15427 ("GDP") on December 5, 1989; 2) a Sectional Planning Area (SPA) plan, Sunbow II Sectional Planning Area Plan ("SPA") approved by City Council Resolution No. 15524 on February 20, 1990;3) Planned Community District Regulations, approved by Ordinance No. 2361 on February 27, 1990 4) Tentative Subdivision Map for the project approved by City Council Resolution No. 15640 on May 22, 1990 mad 5) Resolution No. 2000-221 approving amendments to the Sunbow 1I Sectional Planning Area (SPA) Plan and Sunbow II Design Guidelines to impose conditions and amend the adopted Village Commercial Center Design Concept. Approved by City Council Resolution No. 2000-221 on June 20, 2000; and, WHEREAS, the Environmental Review Coordinator has reviewed the proposed project tbr compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in previously adopted Sunbow II Sectional Planning Area (SPA) Final Environmental Impact Report, FEIR-88-01. Thus, no further environmental review or documentation is necessary; and, Ordinance No. Page 2 Planning Commission Record on Applications WHEREAS, the Planning Commission held an advertised public hearing on said project on December 18, 2002, and voted to recommend that the City Council approve the Development Agreement; and, WHEREAS, the proceedings and all evidence introduced before the Planning Commission at their public hearing held on December 18, 2002, and the minutes and resolutions resulting therefrom, are hereby incolporated into the record of this proceeding. E. Council Record of Applications WHEREAS, a duly called and noticed public hearing on the Development Agreement was held before the City Council of the City of Chula Vista on January 14, 2003, and to receive the recommendations of the Planning Commission, and to hear public testimony with regard to the same. 11. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby find, determine and ordain as follows: A. COMPLIANCE WITH THE CITY GENERAL PLAN Thc City Council has detenmned that the Development Agreement as shown on Exhibit 1, is consistent with the City's General Plan, all applicable mandatory and optional elements of the General Development plan for Sunbow II as well as all other applicable policies and regulations of the City; and, B. APPROVAL OF DEVELOPMENT AGREEMENT In accordance with Section 65867.5 of the Government Code, the City Council of the City of Chula Vista hereby approves the document entitled Development Agreement Between the City of Chula Vista and ACI Sunbow, LLC, a California limited liability co~poration, on file in the City Clerk's Office as Document No. Ill. EXECUTION OF AGREEMENT The Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement on behalf of the City of Chula Vista. IV. EFFECTIVE DATE This ordinance and the Development Agreement shall take effect and be in force on the thirtieth day from after its adoption. V. RECORDATION OF DOCUMENT The City Clerk is hereby dirccted to record the Development Agreement in the office of the County Recorder. Ordinance No. Page 3 Presented by: Approved as to form by: Robert A. Leiter Planning & Building Director John M. Kaheny City Attorney THE ATTACHED 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 Dated: DEVELOPMENT AGREEMENT BY AND BETWEEN ACI SUNBOW, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY ("OWNER"), AND THE CITY OF CHULA VISTA "'CITY"), A MUNICIPAL CORPORATION. EXHIBIT 1 RECORDING REQUESTED BY: City Clerk WHEN RECORDED MAIL TO: C1TY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 Above Space for Recorder's Use DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT ("Agreement") is made effective on the date hereinafter set forth below by and between ACI Sunbow, LLC, a California limited liability company ("Owner"), and THE CITY OF CHULA VISTA ("City"), a municipal corporation. City and Owner xvhenever referenced herein collectively shall be referred to as "Parties" and whenever referenced hereinafter individually may be referred to as "Party." The Parties agree as follows: RECITALS A. gj_t~('s Authority to Enter into Development Agreement. City, as a charter city, is authorized under Resolution No. 11933, its Charter, its self-rule powers and California Government Code sections 65864 et seq., to enter into binding development agree~nents with persons having legal or equitable interests in real property for the purposes of assuring, among other things, (i) certainty as to permitted land uses in the development of such property, and (ii) construction of adequate public facilities to service such property. B. The Property,_ Owner's Interest. Owner has a legal or equitable interest in the real property more particularly described on Exhibit "A" attached hereto (the "Property"). The Property is the subject of this Agreement. Owner is planning the Property as part of a master planned community commonly known as the Sunbow Project. Owner intends that all other persons holding legal or equitable interest in the Property benefit from and be bound by this Agreement, as more particularly described herein. Owner intends to develop, improve, build on, sell or lease the Property or portions thereof to various builders (as hereinafter defined) of residential property or developers of non-residential property who may acquire portions of the Property and the benefits and burdens under this Agreement. C. City and Owner AcM~owle~g~. City and Owner acknowledge this Agreement will: 1. Assure Owner's participation in the accelerated, coordinated and more economic construction, funding and dedication to the public of certain needed public facilities and benefits, and to provide for anticipated levels of service to residents and populations of the Property, the City, and adjacent areas; and 2. Provide Owner assurauces regarding the entitlements and regulations that will be applicable to the development of the Property consistent with the Chula Vista General Plan and the Existing Project Approvals (as hereinafter defined). D. Planning Documents. On February 20, 1990, City adopted a Sectional Planning Area Plan for the Sunbow Project, which included a Phasing Plan, a Public Facility Financing Plan and a Tentative Map for the Project. E. City Ordinance. is the date of adoption by the City Council of Ordinance No. approving this Agreement. The ordinance and Agreement shall take effect and be in full fbrce on ("Effective Date"); F. Cousideration for this Ag_reement. City acknowledges that, as consideration, in part, for entering into this Agreement, Owner has fifily satisfied and completed the following: (i) Olympic Parkway. Owner has advanced a payment to the City in the amount of $1,500,000.00 for construction of a portion of Olympic Parkway. (ii) Mitigation Land. Owner has contributed to the City the sum of thirty two thousand two hundred and forty dollars ($32,240.00) in cash for acquisition of 65 acres of mitigation land in O'Neill Canyon. (iii) Park Facilities. Owner has previously advanced seven nfillion dollars ($7,000,000.00) to City to satisfy Oxvncr's park obligations for the Project, as follows: (a) _Greg Rogers Renovation Work. Owner has paid the City in cash an amount equal to six hundred thousand dollars ($600,000.00) for the renovation of Greg Rogers Park consisting of improvements to the ball field, parking lot and food service facilities. (b) Ten-Acre Park. Owner has provided the City with a ten-acre park site ("Ten-Acre Park") in accordance with Owner's Supplemental Subdivision Improvement Agreement. In addition to providing the Ten-Acre Park site, Owner has completed the following: (l) Construction Activities. Owner has advanced funds for initial improvements to the Ten-Acre Park in an amount equal to one million five hundred thousand dollars ($1,500,000.00). (2) Additional Payment. Owner has also advanced to the City a cash payment in an amount equivalent to fbur million nine hundred thousand dollars ($4,900,000.00) ("Additional Cash Payment"). The City may use the Additional Cash Payment as the City deems appropriate fi*r other park and recreational purposes within the City. (iv) Fire Station Facility: to a Fire Station Site. Fire Station. Owner has provided the following to the City pertaining to a a. Transfer of Site. Owner has previously provided the City with title b. Grading Costs. Owner has graded the Fire Station Site and constructed a retaining wall, at Oxvner's sole cost and expense, in an amount equivalent to twenty one thousand dollars ($21,000.00). c. Construction of Fire Station. Owner has advanced the funds associated with the construction of the Fire Station Facility in an amount equivalent to $1,132,855.67. ARTICLE 1 DEFINITIONS In this Agreement, unless the context otherwise requires, the following terms shall mean: "Builder" means the entity, person or persons to whom Owner will sell, lease or convey or has sold, leased or conveyed the Property or portions thereof, for purposes of its improvement for residential, commercial, industrial or other uses. "CEQA" means thc California Environmental Quality Act, California Public Resources Code sections 21000, et seq. "City" means the City of Chula Vista, in the County of San Diego, State of California. "City Council" means the City of Chula Vista City Council. "Commit" or "Committed" means all of the following requirements have been met with respect to: a. Those certain public improvements or facilities within the City's jurisdictional boundaries and the responsibility of Oxvner for which: i. All discretionary permits required of the Owner have been obtained for construction of the public improvement or facility; and ii. Adequate funds (i.e., letters of credit, cash deposits, performance bonds or land secured public financing, including facility benefit assessments, Mello-Roos assessment districts or similar assessment mechanism) are available such that the City can construct the public improvement or facility if construction has not commenced within thirty (30) days of issuance of a notice to proceed by the Director of Public Works, or construction is not progressing towards completion in a reasonable manner as reasonably deemed by the Director of Public Works. 3 b. Those public improvements or facilities within the City's jurisdictional boundaries, to be provided by other than Owner, in which Owner's proportionate share of the cost of such public improvement or facility has been provided or assured by Owner througb the payment of developurcnt impact fees or other similar exaction mechanism. "County" means the County of San Diego, State of California. "Development Impact Fee (DIF)" means fees imposed upon development within the City pursuant to a City of Chula Vista Development Impact Fee Program, including but not limited to the Transportation Development hnpact Fee, the Interim SR-125 Development Impact Fcc, the Poggi Canyon Sewer Development Impact Fee and the Public Facilities Development Impact Fee. "Development Increments" means the development phase(s) corresponding to the public improvements required lbr such phases of the Project as set forth in the Existing Project Approvals or Future Discretionary Approvals. "Existing Project Approvals" means all discretionary approvals affecting the Project which have been approved or established in conjunction with, or preceding, the Effective Date of this Agreement consisting of, but uot limited to (as hereinafter defined) the "Tentative Map", the "SPA", the Chula Vista General Plan, and the "PFFP", as may be amended from time to time consistent with this Agreement. "Final Map(s)" means any final subdivision map for all or any portion of the Property. "Future Discretionary Approvals" meaus all discretionary approvals requested by the Owner and approved by the City after the Effective Date of this Agreement, including, but not limited to: (i) grading pcnnits; (ii) site plan reviews; (iii) design guidelines and reviews; (iv) precise plan reviews; (v) subdivisions of the Property other than the "Tentative Map", or re- subdivisions of the Property; (vi) condilional use pemfits; (vii) variances; (viii) encroachment permits; (ix) rezonings; and (x) all other reviews, pemfits, and approvals of any type which may be required from time to ti~ne to authorize public or private on- or off-site development ~vhich is a parl of the Project. "Growth Management Ordinance" means the following policies and standards intended to regulate the timing and phasing or rate of growth within the City; the Growth Management Element adopted by City Council Resolution No. 15592 on April 17, 1990, an ordinance adopted by the City Council on May 28, 1991, and the Growth Management Program adopted by City CouuciI Resolution No. 16101, on April 23, 1996, as all such documents may be amended by City from time to time. "Owner" means the person, persons, or entity having a legal or equitable iuterest in the Property, or parts thereof, and includes Owner's successors-in-interest and "Builder" as defined herein. "PFFP" means the Public Facilities Financing Plan for the Project, dated February 20, 1990, and approved by thc City by Resolution No. 15525. 4 "Planning Commission" means the Planning Commission of the City of Chula Vista. "Project" means the physical development of the private and public improvements on the Property as provided for in the Existing Project Approvals and as may be authorized by the City in Future Discretionary Approvals. The term "Project" shall also mean "Property". "Property" means the real property described in Exhibit "A". "Public Facility" or "Public Facilities" means those public facilities described in the Existing Project Approvals or Future Discretionary Approvals. "SPA" means the Sectional Plam~ing Area Plan for the Project, dated February 20, 1990 and approved by the City by Resolution No. 15524. "Subdivision Map Act" means the California Subdivision Map Act, Government Code sections 66410, et seq., and its amendments, as may from time to time be adopted. "Tentative Map" shall refer to the tentative subdivision map and the conditions of approval for the Project, adopted by the City as Chula Vista Tract No. 90-07 on May 22, 1990 by Resolution No. R-15640 and the Tentative Map extension adopted by Resolution No. 17177 on July 20, 1993 and any other applicable extension. "Term" of this Agreement means the period defined in Article 2, below. "Threshold" means the Quality of Life thresholds set forth in the City's Growth Management Ordinance (Municipal Code section 19.19.040), as may be amended from time to time. ARTICLE 2 TERM 2.1 Tenn. This Agreement shall become effective as a develop~nent agreement upon the Effective Date and shall continue for a period of five (5) years thereafter ("the Term"). 2.2 Extension. The Term shall be extended for any period of time during which processing of applications for Future Discretionary Approvals or issuance of building permits to Owner is suspended for any reason other than due to the actions or the default of the Owner, and 1hr such period of time equal to the period of time during which any action by the City or court action limits the processing of such project applications, Future Discretionary Approvals, issuance of building permits or any other development of the Property consistent with this Agreement. ARTICLE 3 VESTED RIGHTS 3.1 Vested Rights. In consideration of the benefits to City, as set forth herein, Owner is vested with the right to develop, and maintain the Project to the land uses, densities and intensities as provided in the Existing Project Approvals and subject to such standards as set forth in this Agreement; provided, however, Owner is not in detZault of its obligations under this Agreement. If Future Discretionary Approvals are obtained by Owner, they shall be vested to the same extent as the Existing Project Approvals provided Owner is not in default of its obligations herein. 3.2 Right to Develop. Subject to Owner complying with applicable requirements of this Agreement, Existing Project Approvals, the Growth Management Ordinance and Tentative Map, Owner and Builders shall have the right to develop the Project for the land uses and to the densities and intensifies set forth in the Existing Project Approvals. 3.3 Maximum Height and Size of Structures. The maximum height and size of structnres to be constrncted on the Project will be governed by the SPA. 3.4 Right to Withhold Permits. Owner agrees that City shall have the right to withhold the issuance of building permits lbr lots in the Property if the construction authorized by a Development Increment has been reached, nnless and until Owner or Builder has satisfied thc obligation to Commit to the construction of public improvements or facilities which CO~Tespond to the next applicable Development Increment. Where such public improvements or facilities have been Committed as required, City shall issue 1o Owner or Builder building permits authorized by the appropriate Development Increment. 3.5 Growth Managc_'ment Q_rOi_}5~[~_cc. Notwithstanding any provisions to the contrary herein, the City may make such changes to the City's Growth Management Ordinance applicable to thc Project as are reasonable and consistent with the purpose and intent of the Growth Management Ordinance and which are generally applicable to all private projects citywide or east of 1-805 or within a specific benefit, Ice or reimbursement district created pursuant to California law. The Growth Management Ordinance shall apply to the timing and development of the Property. 3.6 _New or Amendc_d Rules, Regulations, Policies, Standards, Ordinances and Resolutions. 'Fhe City may apply to the Project, including Future Discretionary Approvals, new or amended rules, laws, regulations, policies, ordinances, resolutions and standards generally applicable to all private projects within the City, east of 1-805 or within a specific benefit fee or reimbursement district created pursuant to applicable California law. It is the Parties intent that lhe application of such new rules, or amended laws, regulations, resolutions, policies, ordinances and standards will not unreasonably prevent or unreasonably delay development of the Property to the uses, densities or intensities of development specified herein or as authorized by the Existing Project Approvals. In addition, the City may also apply changes in City laws, regulations, ordinances, standards or policies specifically mandated by changes in state or federal law in compliance with Article 11 herein. 3.7 0wn_erj50pti_on ~ A=nt/Lyll New Rules. Owner may elect, with City Manager's consent, to have applied to the Project any rules, regulations, policies, ordinances or standards enacted after the Effective Date of this Agreement. The City Manager shall not unreasonably witlthold said consent. 3.8 Modifications to Existing Project Approvals. It is contemplated by the Parties to this Agreement that City and Owner may mutually seek and agree to modifications to the Existing Project Approvals. Such modifications are contemplated as within the scope of this Agree~nent and shall, upon written acceptance by all Parties, constitute for all purposes an Existing Project Approval. Owner and City agree that any such modifications may not constitute an amendment to this Agreement nor require an amendment to the Agreement. 3.9 Changes in "ECVTPP" and Thresholds. The Existing Project Approvals when originally approved by the City, anticipated revisions and updating to the Easteru Chula Vista Transportation Phasing Plan, Transportation DIF and the potential modification of the Thresholds from time to time. Subject to the limitations of this Article 3 of this Agreement, Owner and the Project shall be subject to such revision or update which are lawfully adopted and applied unifornfly by City to all private development projects Citywide, east of 1-805 or within a specific benefit, fee or reimbursement district created pursuant to California Iaw. 3.10 Benefit of Other Vested Rights. Nothing in this Agreement will be construed as adversely affecting Owner's existing vested rights, if any, or Owner's obtaining a vested right to continue development of the Project and to the development and use of the Property in the manner contemplated by the Existing Project Approvals and as specified in this Article 3, as such vested rights are created pursuant to the provisions of California's constitutional, statutory or decisional law. ARTICLE 4 PROCESSING PROJECT 4.1 Processing of Future Discretioumw Approvals. City will accept for processing development applications and requests for Futtire Discretionary Approvals, or other entitlements with respect to the development and use of the Property, provided said applications and requests are in accordance with this Agreement and consistent with the Existing Project Approvals. City costs for processing work related to the Project, including hiring of additional City personnel and/or the retaining of professional consultants, will be reimbursed to City by Owner in accordance with the provisions of the City's standard "Staffing and Processing Agreement", if such agreement is executed by the Pro'ties. 4.2 Length of Validity of Tentative Subdivision Maps. Government Code section 66452.6 provides that tentative subdivision map(s) may remain valid for a length up to the tern~ of a Development Agreement~ The City agrees that thc Tentative Map and any other tentative subdivision maps for the Property, if any, shall be for a term cotern~inous with the length of this Agreement. 4.3 Pre-Final Map Development. If Owner desires to do certain work on the Property (for example, grading) after approval of a tentative map, but prior to the recordation of a final map, it may do so by obtaining a grading and/or other required approvals from the City prior to recordation of a final map. The permit or approval may be approved or denied by the City in accordance with the City's Municipal Code, regulations and policies and provided Owner is in compliance with this Agreement and with the terms of all Existing Project Approvals and Future Discretionary Approvals. In addition, the Owner shall be required to post a bond or other reasonably adequate security required by City in an amount determined by the City to assure the rehabilitation of the land if the applicable final map does not record. 4.4 Trans_fer of Rights and Obligations of Development. Whenever Owner conveys a portion of the Properly, the rights and obligations of this Agreement shall transfer in accordance with Article 12. I herein. ARTICLE 5 OWNER'S OBLIGATIONS 5.1 Contribution of Funds. Within thirty (30) days of the Effective Date of this Agreement oxvner shall contribute $100,000.00 for the capital i~nprove~nents to the Chula Vista Nature Center. 5.2 Condition to Owner's Obligations to Dedicate, Fund or Construct Public Facilities. Owner agrees to construct, develop or provide public improvements and facilities, provide dedications, or reservations of land and satisfy other exactions conditioning the development of the Property in accordance with the following: (1) Existing Project Approvals; (2) Future Discretionary Approvals; (3) other agreements previously executed by the Parties; and (4) as set lbrth in this Agrccment. In addition, Owner convenants and agrees to bond, provide some other form of security acceptable to the City Manager and City Attorney or finance the cost of those facilities identified within Existing Project Approvals and Future Discretionary Approvals or as required by any final map. Owner shall also Commit to the Public Facilities and City shall issue building permits in accordance with Existing Project Approvals and Future Discretionary Approvals. 5.3 Growth Man_ag~emcnt Ordinance. Notwithstanding any provisions to the contrary herein, the City shall have the right to withhold the issuance of building pemrits any time after the City reasonably determines a Thrcshold has been met or exceeded, unless and until the deficiency has been mitigated in accordance with the City's Growth Management Ordinance. a. Building Pemfits. Owner further agrees that building permits may be withheld where thc Public Facilities dcscribed in the Existing Project Approvals and/or Future Discretionary Approvals that may be required for a particular Threshold have not been Committed. b. Thresholds. In the event a Threshold has been met or exceeded, building permit issuance will be withheld, the notice provisions and procedures contained in the Growth Management Ordinance (Municipal Code section 19.09.100(C)) will be followed. In the event the issuance of building permits is suspended uniformly to all properties governed by the Growth Management Ordinance, such suspension shall not constitute a breach of the terms of this Agreement. Furthermore, any such suspension which is not caused by the actions or omissions of the Owner, shall toll the term of this Agrcement for the time of such suspension. 8 c. Information Regardi~xg Thresholds. Upon Owner's written request of the City Manager, the City will provide Owner with information regarding the current status of a Threshold. Owner shall be responsible for any staff costs incurred in providing said written rcsponse. 5.4 Pioneering of Public Facilities. To the extent Owner constructs (i.e., "Pioneers") any public facilities or public improvements which are covered by a DIF Program, Owner shall be given a credit against DIFs other~vise payable, subject to the City's Director of Public Works reasonable determination that such costs are allowable under the applicable DIF Program. It is specifically intended that Owner be given DIF credit for the DIF Program improvements it makes. The fact that such improvements may be financed by an assessment district, Community Facility District or other financing mechanism, shall not prevent D1F credits from being given to the extent that such costs are allowed under the applicable DIF Program. 5.5 Districts and Public Financin~ Mechanisms. This Agreement and the Existing Project Approvals recognize that assessment districts, community facility districts, or other public financing mechanisms, may be necessary to finance the cost of public improvements borne by this Project. If Owner, pursuant to the Existing Project Approvals and/or Future Discretionary Approvals, installs improvements through the use of assessment districts, or other public financing mechanisms, the City shall initiate and take final action to approve or deny the formatioo of such financing district or funding mechanism, under applicable laws, ordinances, or policies. Owner may request that City, but the City is not obligated; to, utilize any other financing methods which may become available under City laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be paid by Owner subject to reimbursement, as may be legally authorized, out of the proceeds of any financing district or funding mechanism. Owner shall comply with the terms of any assessment districts or other financing mechanisms so approved by the City for Property covered by this Agreement and shall make timely payments as required by said financing mechanism. The City retains its rights to take any action it deems reasonably appropriate to guarantee payment. 5.6 Insurance. Owner shall name City as additional insured for all insurance policies obtained by Owner for the Property as pertaining to the Owner's activities and operation in providing Public Facilities for the Property. 5.7 Other Land Owners. Owner hereby agrees to dedicate or provide an Irrevocable Offer of Dedication, when so requested by the City, for adequate rights-of-way within the boundaries of the Property for other land owners to "Pioneer" a public facility on the Property provided said public facility will service the Property and the dedications shall be restricted to those reasonably necessary tbr the construction of the facility and subject to reimbursement as may be allowed in accordance with City standards, ordinances and policies. 5.8 Assurances of Compliance. Owner acknowledges that the City is not required to and will not take any action on any of Owner's applications for Future Discretionary Approvals under this Agreement, or any modifications or amendments thereof, until and unless the City Manager determines that the Owner is not in default of its obligations under this Agreement including but not limited to those set forth in paragraph 5.8 below. 5.9 ~9_rnylete Construction. Owner and Builders agree to diligently complete construction once a building pemlit has been issued for Property which is covered by this Agreement. Should construction stop once the building permits have been issued, which the City in its sole discrelion determines has created a nuisance or fire or safety hazard, the owner of the real properly upon which the construction has stopped agrees to take such steps necessary to cure the nnisance or hazard. Should said owner fail to do so to the City's satisfaction, the City may take what steps it deems necessary to cure the nuisance or hazard at owner's sole cost and expense. ARTICLE 6 DEVELOPMENT IMPACT FEES 6.1 Existin~g_Dcvelopment Impact Fee Progranl_Payments. Owner acknowledges and agrees that Owner is obligated to pay to the City the development impact fees applicable to the Property in effect as of the Effective Date of this Agreement, and as specified by the Existing Project Approvals, Future Discretionary Approvals, the Tentative Map and as allowed by paragraph 3.6 of this Agreement. Thc DIF to be paid by Owner will be the amount in effect at the time the payment of such fccs is made. 6.2 Use of Develop~nent Impact Fee Program. The DIF amounts paid to the City by Owner and others shall be placed by the City in a capital facility fund account established pursuant to Calilbrnia Government Code sections 66000-66009. The City shall expend such fl~nds only for the projects described in the adopted fee program as may be modified from time to time. The City will use its reasonable best efforts to cause such projects to be completed as soon as practicable; however, the City shall not be obligated to use its general funds for such projects. 6.3 Withbo_l~i_[~g_ of Pemfits. Owner agrees that City shall have tile right to withhold issuance of a building permit for any structure or improvement on the Property unless and until the DIF payment for that structure or improvement, due and payable, has been provided to the City. 6.4 Modification of Development Impact Fees. The Parties recognize that from time to time during the duration of the Agreement it will be necessary for the City to update and modi(v its DIF fees. Such reasonable modifications are contemplated by the City and the Owner and shall not constitute a modification to the Agreement so long as: (i) such modifications are based upon methodologies in substantial compliance with the methodology contained in the existing DIF programs; or other methodology approved by the City Council following a public hearing; and (ii) complies with thc provisions of Government Code sections 66000-66009 or other California law. I 0 ARTICLE 7 ANNUAL REVIEW 7.1 City and Owner Responsibilities. City will, at least every twelve (12) months during the Term of this Agreement, pursuant to California Government Code section 65865.1, review the extent of good faith substantial compliance by Owner with the terms of this Agreement. Pursuant to California Government Code section 65865.1, as amended, Owner shall have the duty to demonstrate by substantial evidence its good faith compliance with the terms of this Agreement at the periodic reviexv. Either City or Owner may address any requirement of the Agreement during the review. 7.2 Review Letter. If Owner is found to be in compliance with this Agreement after the annual review, City shall, within forty-five (45) days after Owner's written request, issue a review letter in recordable form to O;vner ("Letter") stating that based upon information known or made known to the Council, the City Planning Commission and~or the City Planning Director, this Agreement remains in effect and Owner is not in default. Owner may record the Letter in the Official Records of the County of San Diego. 7.3 Failure of Periodic Review. City's failure to review at least annually Owner's compliance with the terms and conditions of this Agreement shall not constitute, or be asserted by City or Owner as, a default by Oxvoer or City with respect to the Agreement. ARTICLE 8 DEFAULT 8.1 E'~'ents of Default. A defimlt under this Agreement shall be deemed to have occurred upon the happening of one or more of the following events or conditions: a. A warranty, representation or statement made or furnished by Owner to City is false or proves to have been false in any material respect when it was made. A finding and determination by City made following a periodic review under the procedure provided for in California Government Code section 65865.1 that upon the basis of substantial evidence Owner has not substantially complied with one or more of the terms or conditions of this Agreement. c. City does not accept, timely review, or consider requested development permits or entitlements submitted in accordance with the provisions of this Agreement. If either Party defaults under this Agreement, the Party alleging such default will give the breaching Party not less than thirty (30) days' notice of default in writing. The notice of defimlt will specify the nature of the alleged default, and, where appropriate, the manner and period of time in which said default may be satisfactorily cured. During any period of cure, the Party charged will not be considered in default for the purposes of termination or institution of legal proceedings. If the default is cured, then no default will exist and the noticing Party will take no further action. 11 8.2 Option to Set Matter for Hearing or Institute Legal Proceedings. After proper notice and the expiration of the cure period, the noticing Party to this Agreement, at its option, may (i) institute legal proceedings or (ii) schedule hearings before the Planning Commission and the City Council for a dete~xninatiou as to whether this Agreement should be modified, suspended, or terminated as a result of such default. 8.3 Waiver. Nothing in this Agreement shall be deemed to be a waiver by Owner or City of any right or privilege held by Owner or City pursuant to federal or state law, except as specifically provided herein. Any failnre or delay by a Party in asserting any of its rights or remedies as to any defimlt by the other Party will not operate as a waiver of any default or of any such rights or remedies or deprive such Party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert, or enforce any such rights or remedies. 8.4 Remedies __UE~o.n- Default. In thc event of a default by either Party to this Agreement, the Parties shall have the remedies of specific performance, mandamus, injunction and other equilable remedies. Neither Party shall have the remedy of monetary damages against the other; provided, however, that the award of costs of litigation and atton~eys' fees shall not constitute monetary damages. 8.5 Remedies tbr Breach. All remedies at law or in equity which are consistent with the provisions of this Agreement are available to City and Owner to pursue in the event there is a breach provided, however, neither Party shall have the remedy of monetary damages against the other except for an award of litigation costs and attorneys' fees as described in paragraphs 8.4 and 12.17 herein. ARTICLE 9 ENCUI~IBRANCES AND RELEASES ON PROPERTY 9.1 pis_cx?ti_ %n__t_o._En~c__uj1!her. This Agreement shall not prevent or limit Owner in any manner at Owner's sole discretion, from encumbering the Property, or any portion of the Property, or any improvement on thc Property, by any mo~tgage, deed of trust, or other security device securing financing with respect to the Property or its improvement. 9.2 ~9~r~tg3gee Rights aud ObFlg~a[ip!l__s: The mortgagee of a ~nortgage or beneficiary of a deed of trust encumbering the Property, or any part thereof, and their successors and assigns shall, upon written request to City, be entitled to receive from City written notification of any default by Owner of the performance of Owner's obligations under the Agreement which has not been cared within thirty (30) days following the date of default. If there are no such defaults by Owner, the City Manager shall notify' the requesting Party of that fact in writing. 9.3 Releases. City agrees that upon written request of Owner and provided that all payments and the requirements and conditions required by this Agreement have been performed, City may execute and deliver to Owner appropriate release(s) of obligations imposed by this Agreement m fonn and substance acceptable to the San Diego County Recorder and title insurance company, if any, or as may othe~xvise be necessary to effect the release of a portion of the Property to an individual home buyer or parcel of property that has been built out and sold to 12 an ultimate consumer. City Manager shall not unreasonably withhold approval of such release(s). 9.4 Subordination. Owner agrees to enter into subordination agreements with all lenders having a lien on the Property to ensure that the provisions of this Agreement bind such lienholders should they take title to all or part of the Property through quitclaim deed, sale, foreclosure or any other means of transfer of property. As a condition precedent to obtaining the benefits that accrue to the Owner or the Property under this Agreement, this Agreement by and through said subordination agreements shall be prior and superior to such liens on said Property. Owner shall deliver to the City the fully executed subordination agreements for the Property in a form acceptable to the Cily Attorney and suitable for recording, prior to the second reading of the ordinance adopting the Agreement. ARTICLE !0 MODIFICATION OR SUSPENSION 10.1 Modification to Agreement by Mutual Consent. Except as specifically provided for herein, this Agreement may be modified, from time to time, by the mutual consent of the Parties only in the same manner as its adoption by an ordinance as set forth in California Govcrmnent Code sections 65867, 65867.5 and 65868. The term, "Agreement" as used herein, will include any such modification properly approved and executed. 10.2 Minor Modifications. The Parties to this Agreement contemplate that there may be periodic clarifications and minor modifications to this Agreement. Such minor clarifications or modifications when agreed upon by the Parties hereto are anticipated and shall not constitute an amendment to this Agreement or a modification pursuant to this Article 10 but shall automatically be incorporated herein upon execution in writing by the Parties. 10.3 Unforeseen Health or Safety_ Circumstances. If, as a result of facts, events, or circumstances City finds that failure to suspend or modify this Agreement would pose an immediate threat to the health or safety of the City's residents or the City, the follo~ving shall Occur: a. Notification of Unforeseen Circumstances. Notify Owner of (i) City's determination; and (ii) the reasons for City's determination, and all facts upon which such reasons are based; and b. Notice of Hearing. Notify Owner in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Owner a minimum of ten (10) days prior to the hearings described in paragraph 10.3(c) below, all documents related to such determination and reasons therefor; and c. Hearing~ Hold a hearing on the determination, at which hearing Owner ;vill have the right to address the City Council. At the conclusion of said hearing, City may take action to suspend this Agreement as provided herein. The City may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the Parties, the City finds 13 failure to suspend xvould pose an immediate threat to the health or safety of the City's residents or thc City. ARTICLE 1 1 CHANGE IN STATE OR FEDERAL LAW OR REGULATIONS 11.1 State or Federal Law or Regulation. If any state or federal law or regulation enacted during the Term of this Agreement, or the action or inaction of any other affected governmental jurisdiction, precludes compliance with one or more provisions of this Agreement, or requires changes ill plans, maps, or permits approved by City, the Parties will act pursuant to paragraphs 1 l.l(a) and I 1. l(b), below. a. Notice; Meetin~ The Party first becoming aware of such enactment or action or inaction will provide the other Party(les) with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of this Agreement. Thc Parties will promptly meet and confer in a good faith and reasonable attempt to modify or suspend this Agreement to comply with such federal or state law or rcgnlation. b. He_ar_i_ng. If an agreed upon modification or suspension would not require an amendment to this Agreement, no hearing shall be held. Otherwise, thc matter of such federal or state law or regulation will be scheduled for hearing before the City Council. Fifteen (15) days' writteu notice of such hearing shall be provided to owner, aud the City Council, at such hcaring, will determine and issue findings on the modification or suspension which is required by such federal or state law or regulation. Owner, at the hearing, shall have the right to offer testimony and other evidence. Any modification or suspension shall be taken by the affirmative vote of not less than a majority of the authorized voting members of the City Council. If the Parties Pail to agree alter said hearing, the matter may be subnfilted to nonbinding mediation pursuant to subsection 12.19, prior to the filiug of any legal action by any Party. Any suspension or modification maybe subject to judicial review in conformance with this Agreement. 11.2 Natural Communities Conservation Act £NCCP). The Parties recognize that the City is negotiating xvith the United States Fish and Wildlife Service and the California Department of Fish and Game ("Resource Agencies") pursuant to the ongoing regional effort to implement the Natural Communities Conservation Act ("NCCP"), for the adoption ora subarea plan Multi-Species Conservation Program for thc City ("MSCP"). Thc Parties further recognize that implementation of the MSCP may impact the Project, and the Existing Project Approvals. To thc extent there may be an ambiguity, inconsistency or conflict between the terries of the MSCP mid the temps of this Section 11.2, thc terms of this Section 11.2 shall prevail. a. Sunbow 11 Participation m the MSCP. The Property, Existing Project Approvals and Future Discretionary Approvals with respect to the MSCP shall be governed by the following provisions: (i) Owner has received take authorization from the Resource Agencies (take is authorized under Sunbow's ESA section 7 Biological Opinion's Terms and Conditions) (thc "Take Permit"), 14 (ii) lhe Take Permit is in good standing, Take Permit, (iii) Owner agrees to comply with all the terms and conditions of its (iv) the open space preservation areas on the Sunbow Project will be incorporated into the City's overall MSCP and the development area is within a take authorized area, however, the Sunbow Project will not be a "covered project" as defined by the City's proposed MSCP, (v) under Owner's Take Pernfit and the City's proposed MSCP, take of any covered species within thc development area of the Sunbow Project (including the industrial site) would be allowed, as authorized by the Take Permit and the City's proposed MSCP, because the development area of the industrial site is a part of the take authorized area. City shall provide a certificate to take under the City's take authorization upon Owner's request of the City pursuant to the provisions of the City's MSCP, (vi) it is intended by the City that the Sunbow Project will be exempt from the proposed Habitat Loss and Incidental Take ("HLIT") permit requirements upon adoption of thc HLIT ordinance currently proposed, (vii) the use of open space within the Sunbow Project may include actions and activities that may be allowed by the City's proposed MSCP and the Take Permit. b. hnplementation of the MSCP. Notwithstanding the foregoing, additional modifications to the MSCP, the hnplemeotation Agreement, HLIT, and pennit may occur during thc approval process for the MSCP. Developer understands that the HLIT and the City's MSCP has not been adopted by the City as of the Date of Execntion of this Agreement and nothing herein shall be construed to limit the City's discretion to amend, adopt or deny the HLIT Ordinance or the City's MSCP. Although modifications to Existing Project Approvals are not anticipated with adoption of the MSCP, the MSCP may result in additional measures being applied to the Existing Project. The City and Owner agree to utilize their best efforts for implementation of the MSCP, once executed and effective, with as few modifications to the Existing Project Approvals as may be allowed by the City. Once such modifications are obtaincd, if any, they shall bc vested to the same extent as Existing Project Approvals. ARTICLE 12 MISCELLANEOUS PROVISIONS 12.1 Binding Effect of Agreemen~t. Except to the extent otherwise provided in this Agreement, the burdens of this Agreement bind, and the benefits of this Agreement inure, to City's successor-in-interest and Owner's successors-in-interest to the Property and shall be a covenant running with the land. 12.2 Relationship of City and Owner. The contractual relationship between City and Owner arising out of this Agreement is not of agency. This Agreeinent does not create any third- party beneficiary rights. 15 12.3 Notices. All notices, demands, and con-espondence required or pem~itted by this Agreement shall be in writing and delivered in persou, or inailed by first~class or certified mail, postage prepaid, addressed as follows: If to City, to: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attention: City Manager If to Owner, to: AC1 Sunbow, LLC 750 B Street, Suite 2370 San Diego, CA 92101 City or Owner may change its address by giving notice in writing to the other. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given npon personal delivery, or, if mailed, two (2) business days following deposit in the United States mail. 12.4 Rules of Construction. In this Agreement, the use of the singular includes the plural; thc masculine gender inclndes thc feminine; "shall" is mandatory; "may" is permissive. 12.5 E._nfi~'e Agreement, Waivers, and Recorded Statement. This Agreement constitutes the entire understanding and agreement of City and Owner with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between City and Owncr respecting this Agreement. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate anthorities of City and Owner. Upon the completion of performance of this Agreement, or its revocation or termination, a statement evidencing completion, revocation, or termination signed by the City Manager shall be recorded in the Official Records of San Diego County, California. Unless otherwise specifically stated, nothing herein shall be construed to supersede, modify or amend other existing agreements betweeu the Parties. 12.6 Incorporation of Recitals. incorporated herein to this Agreement. The recitals set lbrth in this Agreement are 12.7 Captions. Thc captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement. 12.8 Consent. Where the consent or approval of City or Owner is required or necessary under this Agreement, the consent or approval shall not be unreasonably withheld, delayed, or conditioned. 12.9 Covenant of Cooperation. City and Owner shall cooperate and deal with each other in good faith, and assist each other in the performance of thc provisions of this Agreement. 16 12.10 Recording. The City Clerk shall cause a copy of this Agreement to be recorded with the Office of the County Recorder of San Diego County, California, within ten (10) days following the Effective Date. 12.ll Delay, Extension of Time for Performance (Force Majeure): In addition to any specific provision of this Agreement, performance by either City or Owner of its obligations hereunder shall be excused during any period of delay caused at any time by reason of any event beyond the control of City or Owner which prevents or delays and impacts City's or Owner's ability to perform obligations under this Agreement, including, but not limited to the following: acts of God, enactment of new conflicting federal, state or local laws or regulations (such as: listing of a species as threatened or endangered), judicial actions (such as the issuance of restraining orders and injunctions), or riots, strikes, or damage to ~vork in process by reason of fire, floods, earthquake, or other such casualties. In addition, any delay in Owner's performance herein may be excused if such delay is caused by City's failure to process any required plans, documents or approvals, provided, however, City's delay is not caused by Owner's failure to submit such plans or documents in a timely manner or is due to Owner's changes or amendments to said documents. If City or Owner seeks excuse from performance, it shall provide written notice of such delay to the other Party within thirty (30) days of the commencement of such delay. If the delay or default is beyond the control of City or Owner, and is excused, an extension ot' time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. 12.12 Covenant of Good Faith and Fair Dealings. No Party shall do anything which shall have the effect of harming or injuring the right of the other Parties to receive the benefits of this Agreement; each Party shall refrain from doing anything which would render its perlbnnance under this Agreement impossible; and each Party shall do everything which this Agreement contemplates that such Party shall do in order to accomplish the objectives and purposes of this Agreement'. 12.13 Time of Essence. Time is of the essence in the perforn~ance of the provisions of this Agreement as to which time is an element. 12.14 Cancellation of Agreement. This Agreement may be canceled by the mutual consent of City and Owner only in the same manner as its adoption, by an ordinance as set forth in California Government Code section 65868, and shall be in a form suitable for recording in the Official Records of San Diego County, California. The tern~ "Agreement" shall include any such amendment properly approved and executed. 12.15 Estoppel Certificate. Within thirty (30) calendar days following a written request by any of the Parties, the other Parties to this Agreement shall execute and deliver to the requesting Party a statement certifying that (i) this Agreement is unmodified and in full force and effect, or if there have been modifications hereto, that this Agree~nent is in full force and effect as modified and stating the date and nature of such modifications; (ii) there are no known current uncured defaults under this Agreement, or specifying the dates and nature of any such default; and (iii) any other reasonable inforn~ation requested. The failure to deliver such a statement within such time shall constitute a conclusive presumption against the Party which fails to 17 deliver such statement that this Agreement is in full force and effect without modification, except as may be represented by the requesting Party, and that there are no uncured defaults in the perlbrmance of the requesting Party, except as may be represented by the requesting Party. 12.16 Institution of L_e. gf4jl Proceeding. In addition to any other rights or remedies, any Party may institute legal action to cure, correct, or remedy any default, to enforce any covenants or agreements herein, or to enjoin any threatened or attempted violation thereof; to recover damages for any default as allowed by this Agreement or to obtain any remedies consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Conrt of the County of San Diego, State of California. 12.17 Attorneys' Fees and Costs. If any Party commences litigation or other proceedings (including, without limitation, arbitration) for the interpretation, reformation, cntbrcement, or rescission of this Agreement, the prevailing Party, as determined by the court, will bc entitled to its reasonable attorneys' fees and costs. 12.18 Hold Harmless. Owner agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operations of Owner or those of its contractors, subcontractors, agents, employees or other persons acting on Owner's behall; on the Project. Owner agrees to and shall defend City and its officers, agents, employees and representatives from actions for damage caused or alleged to have been cansed by reason of Owner's activities on thc Project. Owner agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any legal action filed in a court of competent jurisdiction by a third Party challenging the validity of this Agreement. The prnvisions of this paragraph 13.18 shall not apply to the extent such damage, liability or claim is caused by the sole uegligence or willful misconduct of City, its officers, agents, employees or representatives. 12.19 Non-binding Mediation. If this Agreement requires mediation in order to resolve a disagreement between the Parties, such mediation shall comply with the follo~ving provisions: a. Meet and Confer. The Parties shall meet and confer in good faith to attempt to resolve their disagreement. If the Parties are not able to resolve their disagreement within thirty (30) calendar days after their first meeting on the subject, the matter shall be submitted lbr non-binding mediation in accordance with the temps and conditions set forth below. b. Non-binding Mediation. In the event that the Parties are unable to resolve their disagreement by meeting and conferring among themselves as provided above, the Parties shall meet to select a mediator who will attempt to resolve the disagreement. Unless otherwise agreed by the Parties, the mediator shall have no affiliation with either of the Parties and preferably have experience in municipal or resource and habitat management. In the event that thc Parties are unable to agree on a mediator within ten (10) calendar days after the expiration of the meet and confer period, the Parties shall petition the presiding Judge of the Superior Court of thc County of San Diego to appoiut a mediator who possesses the above-described qualifications. 18 c. Mediation. The mediation shall occur at times and locations agreed upon by the Parties. The Parties shall submit to the mediator their respective relevant documents or evidence supporting their position that each may choose to provide. Neither Party, nor the mediator, shall have any discovery powers in the proceeding. The mediator shall meet with the Parties and attempt to resolve their disagreement by facilitating discussions between them. The mediator shall not take a position on the dispute unless requested to do so by both Parties. In the event that mediation process does not resolve the disagreement within twenty (20) days after first meeting with the mediator, unless extended by mutual agreement of the Parties, the mediation process shall terminate. All discussions at the mediation shall be kept confidential, as may be allowed by state and federal law, and shall not be discoverable in any subsequent proceedings. Each Party shall bear their own costs in the mediation and the Parties shall share equally in any and all costs charged by the mediator. In the event that a resolution of the disagreement at issue is not reached, each Party reserves the right to pursue any and all remedies available at law or in equity with respect thereto. Dated this __ day of ,2002. CITY OF CHULA VISTA ACI Sunbow, LLC, a California limited liability company, Steve Padilla, Mayor ATTEST: By: Susan Bigelow, City Clerk APPROVED AS TO FORM: John M. Kaheny, City Attorney 19 EXHIBIT A OPEN SPACE / PROJECT COUNCIL AGENDA STATEMENT Item: 10 Meeting Date: 01/14/03 ITEM TITLE: Public Heating: Tentative Subdivision Map PCS-99-05, to develop five lots for single-family homes, at 387 Date Street - Applicant: James Hurrell. SUBMITTED BY: REVIEWED BY: Resolution of the Chula Vista City Council adopting the mitigated negative declaration and approving a Tentative Subdivision Map for Park View Estates, a 0.99-acre five lot subdivision for smgle-family dwellings umts located at 387 Date Street, Chula Vista. Director of Planning and Buildin~i~ City M~Jager (4/5tbs Vote: Yes No X) Developer requests approval for a five (5)-lot subdivision known as Park View Estates, at the southerly end of Date Street. The project site is located in an existing single-family residential (R- 1- 5-P) Zone, with a Montgomery Specific Plan Land Use Designation of Low/Medium Density Residential (6 - 11 dwelling units per acre), and a General Plan Land Use Designation of Low Medium Residential (6 - 11 dwelling units per acre). The Environmental Review Coordinator posted notice of a Mitigated Negative Declaration (MND) on November I9, 2002. RECOMMENDATION: That the City Council adopt the Mitigated Negative Declaration and approve the attached resolution to approve the Park View Estates Tentative Subdivision Map. BOARDS/COMMISSIONS RECOMMENDATION: On December 11, 2002 the Planning Commission voted (5-1-0-0) to adopt Resolutign PCS-99-05 recommending that the City Council adopt the Mitigated Negative Declaration and approve the Park View Estates Tentative Subdivision Map. On November 4, 2002 the Resource Conservation Commission determined the Initial Study was adequate and recommended adoption of a Mitigated Negative Declaration. DISCUSSION: Site Characteristics The site is a relatively flat one-acre parcel with an existing single-family home located in the northeast corner of the property, which will be retained as part of lot five of the proposed 5-lot subdivision. The site is immediately adjacent to the Otay River Valley Regional Park, and there are coastal scrub/biological resources located immediately to the south of the property. The site is located within a small community of the Montgomery Specific Plan area known as Page 2, Item: Meeting Date: 01/14/03 Broderick's Acres, an area of modest single-family dwellings that were originally subdivided as approximately one-acre parcels under the jurisdiction of the County of San Diego. The neighborhood is defined by narrow rural standard streets predominately without curb, gutter or sidewalk. The circulation system consists of Date Street and Palm Avenue, which are halfa mile long and provide the only access out of the subdivision to Main Street and Otay Valley Road. Valley Avenue is one- quarter mile south of Main Street and provides the only east-west connection between Date Street and Palm Avenue. General Plan, Zoning and Land Use North: South: East: West: GENERAL PLAN: ZONING: Low Medium Residential R-1-5-P Parks and Open Space A-70 [,ow Medium Residential R-1-5-P Low Medium Residential R-1-5-P CURRENT LAND USE: Single Family Residential Otay River Valley Regional Park Duplex Two-Family Residential Vacant Undeveloped Land Proposal The proposal is to subdivide a .99-acre lot into a five-lot subdivision in order to provide four new single-family homes in addition to the existing single-family home on site. The gross lot sizes will range from 5,271-sq. ft. to 18,515-sq. ft. The net usable lot area excluding driveway and guest parking easements range in size from 5,003-sq. ft. to 12,035-sq. ft. The applicable R-1-5-P standards require a subdivision to provide a minimum of 5,000-sq. ft. per lot. Two of the proposed homes will face the southerly cul-de-sac end of Date Street, and the other three homes (one existing and two proposed) will face a 20-ft. driveway easement that will provide access to Date Street. Of note, the tentative map shows a fire department hammerhead turnaround in front of lot four. This hammerhead driveway has now been eliminated from the requirements of the subdivision map, as the fire department has indicated that the fire hydrant to be located at the easement driveway entrance will be within an acceptable distance to provide adequate fire coverage to the three homes served by the easement driveway. As such, the final map will be revised to show lot four with the same building envelope mirrored or flipped-over as the one shown for lot three, with the location providing the same large rear yard area as shown for lot three. Analysis The subdivision appears to be a good fit considering the site characteristics. The area has been developed with similar types of subdivisions of the predominately one-acre parcels for a number of years. Those that followed the City's zoning and subdivision ordinance requirements provide 20-fi. wide recorded easements for access. Typical for this area there are up to three lots created that cannot be located to face a street frontage along Date Street or Palm Avenue. Street improvements are provided on a piece-meal basis as developments occur within the Broderick's Acres neighborhood. Concrete driveway easements, curbs, gutters, and sidewalk are always required and may be installed immediately or deferred. In this case, all required improvements will be made at the time of home construction. Page 3, Item: I~ Meeting Date: 01/14/03 As the subdivision occurs at the end of the street, half street pavement and a cul-de-sac design will be provided in front of lots one and two. In addition, easement and street drainage will be captured by a bio-swale catch basin at the end of the cul-de-sac with an energy dissipater as required to filter storm- water mn-off and prevent adverse impacts upon the Otay River Valley Regional Park preserve. As there are three lots served by the driveway easement, the Zoning Code requires five guest parking spaces to be located adjacent to the driveway easement in lieu of on street parking available for the lots facing a public right-of-way. As such, lots three, four and five are provided three guest parking spaces located between lots three and four, and two more guest parking spaces at the end of the driveway easement, next to a proposed two-car garage to be provided for the existing house. All new homes will also have two-car garages built-in to the proposed homes as required by the Zoning Code for all single and two-family zoned dwelling units. The size and design of the lots and driveways will also conform to the Subdivision Manual. In addition, the design and maintenance mechanism for the catch basin located at the end of the street will be in conformance with standards approved by the City Engineer and subject to review and approval by the Planning Commission. CONCLUSION: The Park View Estates subdivision will be a vast improvement to a property that has been underutilized and where illegal dumping has occurred for a number of years. The subdivision will improve the overall character of the area and provide transition to a future staging area of the Otay River Valley Regional Park. In addition, there are very few new tract home subdivisions located within the Montgomery Specific Plan area of western Chula Vista, and the Park View Estates will provide for new single-family home opportunities on lots of comparable size to what is predominately available in eastern Chula Vista, at a much more affordable price for potential homeowners seeking to live closer to established shopping areas and job centers. FISCAL IMPACT: The developer will pay all processing fees. ATTACHMENTS: 1. Locator Maps (Subdivision/Initial Study) 2. Planning Commission Resolution 3. Environmental Documents (Mitigated Negative Declaration, Initial Study) 4. Application Documents and Disclosure Statements 5. Tentative Subdivision Map (with un-revised lot four building envelope) J:~PLANNING~IAROLDkPCS-99-05 C CREPORT.DOC PROJE i, i LOCATION i i LOT I CITY OF CHULA VISTA ........ COUNTY OF SAN DIEGO CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT PROJECT DESCRIPTION:  ~puc.~n-: IAI'lES C. HURRELL INITIAL STUDY PROJECT Request: Proposal for 5 single family lot subdivision ADDRESS: 387 DATE STREET 'Park View Estates" R1-5P ( Single Family - 5000 SCALE: FILE NuMEER: sq.l~. Min. Lot Precise Plan) zone. NORTH No Scale IS-99-23 Related Case(s): PCS-99-05 j:\home\planning\cherrylc\locators\is9923.cdr 10.21.02 ' PROJ[eT LOCATION CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR P.O~ECT James HurreH PROJECTDESCRIFRON:  APPIJC, ANT: Park View Estates SUBDIVISION PROJECT 387 Date Street Request: Proposal for 5 single family lot subdivision in ADDRESS: the R1-5P (Single Family- 5000 sq. ff. min. lot Precise SCALE: FILE NUMBER: ~ Plan) zone. NORTH No Scale PCS-99-05 h:\home\planning\carlos\ocators\pcs9905.cdr 1/26/99 /~)_~- RESOLUTION NO. PCS-99-05 RESOLUTION OF ~ CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT TH~ CITY COUNCIL APPROVE PARK VIEW ESTATES TENTATIVE SUBDIVISION MAP, PCS-99-05, A 0.99-ACRE FIVE LOT SUBDIVISION FOR SINGLE FAMlLY DWELLING UNITS LOCATED AT 387 DATE STREET. WHEREAS, a duly verified application for a tentative subdivision map was filed with the City of Chula Vista Planning Department on December 9, 1998 by James C. Hurrell (developer); and WHEREAS, said developer requests permission to subdivide a 0.99-acre parcel into five lots for single-family dwelling units, located at the southerly terminus of Date Street, located within a single- family residential (R-1-5-P) Zone, within the Montgomery Specific Plan area with a Land Use Designation of Low/Medium Density Residential (6 - 11 dwelling units per acre), and ~vithin the General Plan Land Use Designation of Low Medium Residential (6 - 11 dwelling units per acre), consisting of APN 631-012-08-00; and WHEREAS, the Resource Conservation Commission determined that the initial study was adequate and recommended adoption of a Mitigated Negative Declaration as to the effects of the proposal on the environment in compliance with the California Environmental Quality Act; and WHEREAS, the Planning Director set the time and place for a hearing on said tentative subdivision map 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 within 500- ft. 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 December 11, 2002 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed; and WHEREAS, the Planning Commission considered all reports, evidence, and testimony presented at the public hearing with respect to the subject application. NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION does hereby recommend that the City Council adopt the Mitigated Negative Declaration and approve the Tentative Subdivision Map PCS-99-05 in accordance with the tentative subdivision map findings and subject to the conditions of approval 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 th 11 day of December, 2002, by the following vote, to-wit: AYES: NOES: ABSTAIN: ATTEST: Russ Hall, Chair Diana Vargas, Secretary Gray Davis Governor DATE: TO: STATE OF CALIFORNIA Governor's Office of Planning and Research State Clearinghouse ACKNOWLEDGEMENT OF RECEIPT November 15, 2002 Mafia C. Muett City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Park View Estates SCH#: 2002101118 Ta[ Finney Interim Director This is to acknowledge that the State Clearinghouse has received your environmental document for state review. The review period assigned by the State Clearinghouse is: Review Start Date: Review End Date: October 24, 2002 November 22, 2002 We have distributed your document to the following agencies and departments: Caltrans, District 11 Department of Fish and Game, Region 5 Department of Parks and Recreation Department of Water Resources Native American Heritage Commission Regional Water Quality Control Board, Region 9 Resources Agency State Lands Commission State Water Resources Control Board, Division of Water Rights The State Clearinghouse will provide a closing letter with any state agency comments to your attention on the date following the close of the review period. Thank you for your participation in the State Clearinghouse review process. 1400 TENTH STREET P.O BOX3044 SACRAMENTO, CALIFORNIA 95812-3044 Notice of Completion Mail lo: State Clearinghouse, 1400 Tenth Street, Room 121, Sacramento, CA 95814 (916) 445~0613 Project Title: Park View Estates LeadAgency City of Chula Vista Contact Person Maria C. Muett Street Address 276 Fourth Avenue Phone: (619) 585-5747 City: Chula Vista Zip: 91910 County: San Diego See NOTE belmv Project Location County: San Diego City/NearestCommunity: Chula Vista Cross SeeeB: Date Street and Valley Avenue Total Acres: 0.99 acre Assessor'sParcelNo.: 631-012-008 _Section:- Twp.: Range: Within 2 Miles: Railways: None Document Type CEQA: [] NOP [] NOE NEPA: [] NOI [~] Early Cons [] NOC [] FON81 [] Neg Dec (Mitigated) [] NOD I~ Draft ElS ~] Draft EIR [] Supplement/Subsequent EIR [] EA (Prior SCM No ) Other: [] Joint DocUrmmt [] Final Docun'znt [] Other Local Action Type [] General Plan Update [] General Plan Amendment [] General Plan Element [] Community Plan [] Other [] Specific Plan [] Master Plan [] Planned Unit Development [] Site Plan [] Rezone [] Annexation [] Prezone [] Redevelopment [] Use Permit [] Coastal Permit [] LandDivision (Subdivision, Parcel Map, Tract ~tap, etc.) Development Type [] Residential: Units d Acres 0~99 [] Water Facilities: T)pe [] Commercial: gq.fi__ Acres Employees_ [] Mining: Mineral [] Industhal: Sqifit._ Acres Employees [] Power: T)pe [] Educational -- -- [] Recreational [] Waste Treatment: T)~e_ [] Other: [] Hazardous Waste: Type_ _MGD Project Issues Discussed in Document [] Aesthetic/Visual [] Flood Plain/Flooding [] Schools/Universities [] Water Quality [] A~cultural Land [] Forest Land/Fire Hazard [] Septic Systems [] Water Supply/Groundwater [] Air Quality [] Geologic/Seismic [] Sewer Capacity [] Wetland/Riparian [] Archeological/Histoncal [] Minerals [] Soil Erosion/CompactiorffGmding [] Wildlife [] Coastal [] Noise [] Solid Waste [] Growlh Inducing ~[~ Drainage/Absorption [] Toxic/Hazardous [] Population/Housing Balance [] Land Use EconomidJobs [] Public Sex-ices/Facilities [] Traffic/Circulation [] Cumulative Effects [] Fiscal [] Recreation/Parks [] Vegetation [] Other: [] Paleontology Present Land Use/Zoning/General Plan Use Present land use is ~mil_~ residential. Zo~ R-15P~le-F~dential, mini~um ~ot ~rea ~- 5,00~are feet; Precise Plan) General Plan deS~nation is low-medium residential. Project Description The proposed project consists of the subdivision of an approximate one-acre parcel into 5 single-family residential lots; one single-family residence exists. The proposed lot sizes average over S,000 square feet and the proposed density of five dwelling units per gross acre is consistent with the low-medium residential General Plan designation of the property. The project site is within the City's Southwest Redevelopment Project Area. The proposal requires a.Tentative Subdivision Map to be considered by the Planning Commission and City Council. NOTE: Clear£nghouse will assign identification numbers for all new projects. Ifa SCH number already arists for a project (e.g from a Notice of Pr~saration or previous draft documen0 pl~ase fil! it in. Reviewinq Aqencies Checklist Resources Agency Boating & Waterways Coastal Commission Conservancy Coastal Colorado River Board Environmental Affairs Conservation Air Resources Board Fish & Game (with Biological Resource Study) Forestry Office of Historic Preservation Parks & Recreation Reclamation S F. Bay Conservation & Development Commission Water Resources (DWR) Business, Transportation & Housing Aeronautics California Highway Pal~-ol Caltrans Distriqt 11 Department of Transportation Planning (headquarters) Housing & Community Development Food & Agriculture Public Review Period (to be filled in by lead agency) ,/ KEY -- Health & Welfare S = Document sent by lead agency Health Services X = Document sent by SCH APCD/AQMD '/' = Suggested dis~bution OLA (Schools) State & Consumer Services California Waste Management Board __ S'WRCB: Clean Water Grants -- SWRCB: Delta Unit SWRCB: Water Quality SWRCB: Water Rights __ Regional WQCB #9 (San Diego) Youth & Adult Corrections __ Corrections Independent Commissions & Offices Energy Commission Native American Heritage Conm'nission Public Utilities Commission Santa Monica Mountains Conservancy __ State Lands Commission __ Tahoe Regional Planning Agency __ General Services Other Starting Date October 21, 2002 Signature ~ o~. ~g~.~ Ending Date November 19, 2001 Date ~c~/, oD OC.) ~ For SCH Use Only: Date Received at SCH Date Review Starts Date to Agencies Date Io SCH Clearance Date Notes Catalog Number Applicant Consultant Contact Address Phone Applicant James Hurrell Address City/State/Zip __Imperial Beach, CA 91937 123 Dahlia Avenue Phone (619)889-0580 Lead Agency (Complete if applicable): Consulting Firm Cdy/State/Zip Address Contact: Phone Mitigated Negative Declaration PROJECT NAME: Park View Estates PROJECT LOCATION: 387 Date Street ASSESSOR'S PARCEL NO.: 631-012-008 PROJECT APPLICANT: James C. Hurrell CASE NO.: IS-99-23 DATE OF DRAFT DOCUMENT: October 18, 2002 DATE OF RESOURCE CONSERVATION COMMISSION MEETING: November 4, 2002 DATE OF FINAL DOCUMENT: November 25, 2002 A. Proiect Setting The project site consists of an approximate one-acre parcel located in an urbanized area and containing an existing single-family residence. The project is located at the end of Date Street, adjacent to the Otay River Valley (see Exhibit A - Location Map). No animal or plant species listed as rare, threatened or endangered by local, State or Federal regulatory agencies are known to be present on this highly disturbed residential property. Immediately to the south lies habitat areas in the Otay River floodplain that have been highly disturbed by illegal dumping of debris and trash. Fencing separates the project site from adjacent properties to the south. The project site is adjacent to undeveloped City-owned land within the Otay Valley Regional Park. The adjacent properties to the south and southxvest consist primarily of undisturbed native vegetation, the majority of which is identified as part of the 100% Conservation Area - Habitat Preserve in the Draft City of Chula Vista Multiple Species Conservation Program Subarea Plan. Land uses surrounding the project site consist of the following: North: South: East: West: Single-family residences Undeveloped City-owned land within Otay Valley Regional Park Single-family residences Eucalyptus trees and single-family residences B. Project Description The proposed project consists of a five-lot subdivision to accommodate the construction of four additional single-family residences on the project site (see Exhibit B - Site Plan). The proposed lot sizes average over 5,000 sq. ft. each and the proposed density of five dwelling units per gross acre is consistent with the low-medium residential General Plan designation of the property. The project improvements include installation of Date Street with half cul-de-sac immediately to the west of the property. The estimated grading quantity includes only 50 cubic yards cut and 50 cubic yards fill for the proposed filtration system; no further grading is proposed. 1 C. Compliance with Zoning and Plans The existing zoning on the project site is RI5P Zone (Single-Family Residential, minimum lot area of 5,000 square feet; Precise Plan) and the General Plan designation is low medium residential. The project is within the City's Southwest Redevelopment Specific Plan. The proposed project is consistent with the existing zoning and General Plan designation of the property. D. Public Comments On April 27, 1999, a Notice of Initial Study was circulated to property owners within a 500-foot radius of the project site. The public comment period ended May 7, 1999. The concern expressed in the one comment letter received dealt with traffic circulation and is addressed below in Section E. E. Identification of Environmental Effects An Initial Study conducted by the City of Chula Vista (including an attached Environmental Checklist form) determined that the proposed project would not have a significant environmental effect, and the preparation of an Environmental Impact Report will not be required. This Mitigated Negative Declaration has been prepared in accordance with Section 15070 of the State CEQA Guidelines. Geophysical The project site has been previously graded and is partially developed, containing one single-family residence. Single-family residential development exists to the north, east and west of the project site. According to the Engineering Division, further grading to accommodate the proposed development would require a grading permit. The preparation and submittal of a final soils report will be required prior to the issuance of a grading permit as a standard engineering requirement. There are no known or suspected seismic hazards associated with the project site. The project site lies 1.2 miles to the west of the La Nacion Fault Zone. The site is not currently within a mapped Earthquake Fault Zone. Therefore, project compliance with applicable Uniform Building Code standards would adequately address any building safety/seismic concerns.. The potential exists for significant project-related erosion or siltation impacts, ~vhich may affect the Otay River, if not mitigated. Appropriate erosion control measures would be identified in conjunction with the preparation of final grading plans and would be implemented during construction. The implementation of water quality best management practices (BMPs) during construction would be required in accordance with NPDES Order No. 2001-01. All portions of the development area disturbed dur/ng construction would either be developed or would be appropriately landscaped in compliance with the City Municipal Code, Sections 19.36.090 and 19.36.110. Compliance with BMPs and NPDES Order No. 2001-01 would be required and would be monitored by the Engineering Division. Therefore, potentially significant erosion and siltation impacts would be reduced to a level of less than significance. Water/Drainage The project site was previously graded; drainage presently sheet flows directly to the south towards the Otay River. The proposed' addition of four new structures on the site would not significantly affect drainage flow. According to the Engineering Division, the preparation and submittal of a drainage 2 study will be required in conjunction with final grading and improvement plans; properly designed drainage facilities would be required to be installed at the time of site development. Due to the size of the project site, the preparation and implementation of a storm water pollution prevention plan (SWPPP) would not be required. However, compliance with provisions of the California Regional Water Quality Control Board, San Diego Region Order No. 2001-01 with respect to construction- related water quality BM?s would be required. Based upon project design, conditions of the tentative map and mitigation measures any potential adverse impacts would be lowered to a level of less than significance. The project has been designed so that runoff would not drain directly into the Preserve area to the south. The incorporation of post-construction BMPs would be required to minimize impacts from urban runoff into the Preserve area. The preliminary grading plan indicates that the proposed project would include bioswales or other filtration system acceptable to the City Engineer off-site to the west~ south of the future cul-de-sac. The tiltration system would tilter runoff prior to it passing through an energy dissipater and entering the Preserve area_ The bioswale, or other filtration system, is proposed in an area that currently supports eucalyptus trees, which is not a sensitive habitat. The resulting filtered runoff would not have a significant negative effect on wildlife or habitat in the Preserve area. Compliance with the mitigation measures outlined below in Section F, under "Biological Resources", would reduce this potentially significant impact to below a level of significance. Biological Resources The Multiple Species Conservation Program (MSCP) is a comprehensive, long-term habitat conservation plan that addresses the needs of multiple species and the preservation of natural vegetation communities in San Diego County. The MSCP is a subregional plan under the California Natural Communities Conservation Planning Act of 1991. An MSCP Subregional Plan was prepared for the subregion, an area encompassing 12 jurisdictions and 582,243 acres. The MSCP Subregional Plan is implemented through local Subarea Plans. The Draft City of Chula Vista MSCP Subarea Plan (October 2000) does not identify the project site within the City's proposed MSCP Preserve Area. No sensitive species were found on site and no sensitive species are expected to occur on site. However, the project site is adjacent to properties to the south and southwest that are within the proposed 100% Conservation Area - Habitat Preserve identified in the draft Subarea Plan. The site has been previously graded and contains one single-family residence. Non-native plants and trees are located throughout the project site. According to the biological resources study prepared by Helix Environmental Planning, Inc., dated October 14, 2002, no endangered, sensitive species, species of concern or species that are candidates for listing were observed on the site or are expected to occur on site. Although the previously graded project site contains no sensitive biological resources, Helix identified native habitat, Diegan coastal sage scrub, immediately south and southwest of the site. Property to the west supports eucalyptus tress and residences beyond. Coastal sage scrub habitat in the project vicinity is small in area and of poor quality and unlikely to support the threatened Coastal California gnatcatcher; therefore, no impacts to this species are expected to occur. Disturbed habitat on site consists primarily of areas heavily disturbed by grading and past construction/yard waste disposal. Piles of imported dirt have been placed over much of the area. Analysis of aerial imagery by Helix Environmental Planning, Inc., from January 1999 and January 2001 shows three mature sumac. Apart from the sumacs, little evidence of any native habit was present in 2002 or in these aerial photos that would indicate the presence of functioning habitat prior to the deposition of the dirt. 3 I0 12 Direct Impacts Pursuant to the draft MSCP Subarea Plan, impacts to sensitive habitats require mitigation. The project site is located within the Tier IV (non-sensitive) area of the MSCP Subarea Plan and, therefore, does not require any habitat mitigation. Required street frontage improvements immediately west of the site would directly impact at least two eucalyptus trees. This impact could be significant ifraptors were displaced fi.om nests and failed to breed. Compliance with the mitigation measures outlined below in Section F would reduce this potentially significant impact to below a level of significance. Indirect Impacts The City's draft MSCP Subarea Plan addresses indirect impacts to designated Preserve Areas. Potential indirect impacts from the proposed project addressed in the biological resources study include drainage, lighting, noise and invasive species. Based upon the analysis contained in the study, it was determined that indirect noise and drainage impacts would be potentially significant, unless mitigated, and that other indirect impacts would be less than significant. Node No on-site construction noise impacts would occur due to the lack of habitat and sensitive species on site. If raptors are nesting in the nearby off-site eucalyptus trees to the west and south during construction, construction noise could potentially adversely affect breeding success. To avoid any potential significant impacts from construction noise, avoidance of construction between February 1 and July 31 is recommended or, if unavoidable, surveys in the vicinity by a qualified biologist shall be performed to determine absence or presence of raptor nests. If raptor nests are absent in the potentially affected area, conslruction may proceed; if present, the qualified biologist shall both determine if construction may proceed and monitor any raptor nests at the beginning of construction to ensure that nesting birds are not disturbed. Compliance with the mitigation measures outlined below in Section F would reduce this potentially significant impact to below a level of significance. Drainage The project has been designed so that runoff would not drain directly into the Preserve area to the south. The incorporation of post-construction BMPs would he required to minimize impacts from urban runoff into the Preserve area. The preliminary grading plan indicates that the proposed project would include bioswales or other filtration system acceptable to the City Engineer off-site to the west, south of the future cul-de-sac. The filtration system would filter runoffpr/or to it passing through an energy dissipater and entering the Preserve area. The bioswale, or other filtration system, is proposed in an area that currently supports eucalyptus trees, which is not a sensitive habitat. The resulting filtered runoff would not have a significant negative effect on wildlife or habitat in the Preserve area. Compliance with the mitigation measures outlined below in Section F would reduce this potentially significant impact to below a level of significance. F. Mitigation Necessary to Avoid Significant Impacts Geophysical 1. Prior to the commencement of grading, temporary erosion control measures shall be implemented. These measures may include desilting basins, berms, hay bales, silt fences, dikes and shoring. These measures shall be reflected on the grading and improvement plans to the satisfaction of the City Engineer. Water/Drainage Prior to the issuance of any grading permit and/or public construction permit, the City Engineer shall verify that the final grading and improvement plans comply with the provisions of California Regional Water Quality Control Board, San Diego Region Order No. 2001-01 with respect to construction-related water quality best management practices. Biological Resources Direct Impacts Prior to the issuance of any grading permit and/or public construction permit, the Environmental Review Coordinator shalI verify that the following condition is included as a special note on the final grading and improvement plans: To avoid impacts to raptor nests, tree removal shall either be avoided between February 1 and July 31 or, if unavoidable, surveys of affected trees shall be performed for active raptor nests by a qualified biologist to determine absence or presence. If raptor nests are absent in the affected trees, construction may proceed; if present, removal of trees with an active raptor nest shall be prohibited and the qualified biologist shall resurvey the trees prior to tree removal. Prior to tree removal between February 1 and July 31, a survey let/er report prepared by a qualified biologist shall be submitted to the satisfaction of the Environmental Review Coordinator. Indirect hnpacts 4. Prior to the issuance of any grading permit and/or public construction permit, the Environmental Review Coordinator shall verify that the following condition is included as a special note on the final grading and improvement plans: To avoid impacts to raptors from construction noise, avoidance of construction between February 1 and July 31 is recommended or, if unavoidable, a survey shall be conducted for active raptor nests within the potentially affected area by a qualified biologist to determine absence or presence. If raptors nests are absent in the affected trees, construction may proceed; if present, the qualified biologist shall determine if construction may proceed and if so, shall monitor any raptor nests at the beginning of construction activities and as deemed necessary by the Environmental Review Coordinator throughout construction to ensure that nesting birds are not disturbed. Prior to the commencement of construction between February 1 and July 31, a survey letter report prepared by a qualified biologist shall be submitted to the satisfaction of the Environmental Review Coordinator. Prior to the issuance of any grading permit and/or public construction permit, the City Engineer shall verify that the grading and improvement plans comply with the provisions of Califomia Regional Water Quality Control Board, San Diego Region Order No. 2001-01 with respect to permanent, post-construction water quality best management practices (BMPs). The permanent, post-construction BMPs shall consist of bioswales immediately south of the future Date Street cul-de-sac with an energy dissipater, north of the MSCP Preserve Area, or other filtration system in this location acceptable to the City Engineer and Environmental Review Coordinator. G. Consultation 1. Individuals and Organizations City of Chula Vista: Marilyn R.F. Ponseggi, Planning and Building Paul Hellman, Planning and Building Mary Ladiana, Planning and Building Maria C. Muett, Planning and Building Brad Remp, Planning and Building Duane Bazzel, Planning and Building Frank Herrera-A, Planning and Building Garry Williams, Plannning and Building Clifford L. Swanson, Engineering Frank Rivera, Engineering Ralph Leyva, Engineering Silvester Evetovich, Engineering Majed A1-Ghafry, Engineering Sohaib A1-Agha, Engineering Samir Nuhaily, Engineering Ed Thomas, Fire Marshal Rod Hastie, Fire Department Richard Preuss, Police Department - Crime Prevention Applicant: James Hurrell Others: Otay Water District Chula Vista Elementary School District 2. Documents City of Chula Vista General Plan, 1989 Title 19, Chula Vista Municipal Code Final Environmental Impact Report, City of Chula Vista General plan Update, EIR No. 88-2, P&D Technologies, Inc., May 1989 Draft City of Chula Vista Multiple Species Conservation Program Subarea Plan, October 2000 Biological Resource Analysis for Park View Estates, Helix Environmental Planning, Inc., October 14, 2002 Geotechnical Study/Limited Soils Investigation, East County Testing and Lab, October 17, 1998 6 Initial Study This environmental determination is based on the attached Initial Study, and any comments received in response to the Notice of Initial Study. The report reflects the independent judgment of the City of Chula Vista. Further information regarding the environmental review of this project is available from the Chula Vista Plannihg and Building Department, 276 Fourth Avenue, Chula Vista, CA 91910. Marilyn R.CF. Ponseggi Environmental Review Coordinator J:\Planning~VlAKIA\lnitial Study\IS-99-23Dmft Mitigated Negative Declaration.doc 7 ¸11 MAIN ST PROJECT LOCATION.. CHULA LOCATOF VISTA PLANNING PROJECT Park View Estates PROJECT 387 Date Street NORTH No Scale IS-99-23 h:\home\planning\carlos\locators\is9923.cdr 4~20/99 AND BUILDING DEPARTMEN PROJECT DESCRIPTION: INITIAL STUDY Request: Proposal for a tentative subdivision map 5 single family dwellings in the R1-SP (Single Family Zone-5000 sq. ft. min. lots size Precise Plan). Related Case: PCS-99-05 ATTACHMENT "A" MITIGATION MONITORING AND REPORTING PROGRAM (MMRP) Park View Estates - IS-99-23 This Mitigation Monitoring and Reporting Program has been prepared by the City of Chula Vista in conjunction with the proposed Park View Estates five-lot single-family residential subdivision. The proposed project has been evaluated in an Initial Study/Mitigated Negative Declaration (IS-99-23) prepared in accordance with the Califomia Environmental Quality Act (CEQA) and City/State CEQA Guidelines. The legislation requires public agencies to ensure that adequate mitigation measures are implemented and monitored for Mitigated Negative Declarations. AB 3180 requires monitoring of potentially significant and/or significant environmental impacts. The Mitigation Monitoring and Reporting Program for this project ensures adequate implementation of mitigation for the following potential impacts: 1. Geophysical 2. Water/Drainage 3. Biological Resources MONITORING PROGRAM Due to the nature of the environmental issues identified, the Mitigation Compliance Coordinators shall be the Environmental Review Coordinator and City Engineer of the City of Chula Vista. The applicant shall be responsible to ensure that the conditions of the Mitigation Monitoring and Reporting Program are met to the satisfaction of the Environmental Revie~v Coordinator and City Engineer. Evidence in written form confirming compliance with the mitigation measures specified in Mitigated Negative Declaration IS-99-23 shall be provided by the applicant to the Environmental Review Coordinator and City Engineer. The Environmental Review Coordinator and City Engineer will thus provide the ultimate verification that the mitigation measures have been accomplished. Table 1, Mitigation Monitoring and Reporting Program Checklist, lists the mitigation measures contained in Section F, Mitigation Necessary to Avoid Significant Effects, of Mitigated Negative Declaration IS-99-23, which will be implemented as part of the project. In order to determine if the applicant has implemented the measure, the method and timing of verification are identified, along with the City department or agency responsible for monitoring/verifying that the applicant has completed each mitigation measure. Space for the signature of the verifying person and the date of inspection is provided in the last column. J:\Planning~MARlA\lnitial Study\lS~99-23M M RPtext.doc Case No. IS-99-23 ENVIRONMENTAL CHECKLIST FORM 1. Name of Proponent: James C. Hurrell Lead Agency Name and Address: Address and Phone Number of Proponent: Name of Proposal: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 125 Dahlia Avenue Imperial Beach, CA 91932 (619) 423-5386 Park View Estates 5. Date of Checklist: October 18, 2002 LAND USE AND PLANNING. Would the proposal: a) Conflict with general plan designation or zoning? b) Conflict with applicable environmental plans or policies adopted by agencies with jurisdiction over the project? c) Affect agricultural resources or operations (e.g., impacts to soils or farmlands, or impacts from incompatible land uses)? d) Disrupt or divide the physical arrangement of an [] [] r~ [] established community (including a low-income or minority community)? Comments: The proposed five-lot single-family residential subdivision is consistent with the existing R-1-5P zoning designation and the low-medium residential General Plan designation of the property. No agricultural resources are present on-site or in the immediate vicinity. Mitigation: No mitigation measures are required. -22 POPULATION AND HOUSING. Would the proposal: a) Cumulatively exceed official regional or local population projections? b) Induce substantial growth in an area either [] [] [] [] directly or indirectly (e.g., through projects in an undeveloped area or extension of major infrastructure)? c) Displace existing housing, especially affordable housing? Comments: The proposed project would induce minimal population growth and would not displace housing. The project would retain an existing residence and provide four additional single-family residences. The project would not require the extension of major infrastructure since there are adequate water and sewer lines and access to the project site. Mitigation: No mitigation measures are required. III. GEOPHYSICAL. Would the proposal result in or expose people to potential impacts involving: a) Unstable earth conditions or changes in geologic substructures? b) Disruptions, displacements, compaction or overcovering of the soil? c) Change in topography or ground surface relief features? d) The destruction, covering or modification of any unique geologic or physical features? e) Any increase in wind or water erosion of soils, either on or off the site? [] [] [] [] 2 Changes in deposition or erosion of beach sands, or changes in siltation, deposition or erosion, which may modify the channel of a fiver or stream or the bed of the ocean or any bay inlet or lake? g) Exposure of people or property to geologic hazards such as earthquakes, landslides, mud slides, ground failure, or similar hazards? Comments: See Mitigated Negative Declaration, Section E. Mitigation: See Mitigated Negative Declaration, Section F. IV. WATER. Would the proposal result in: a) Changes in absorption rates, drainage patterns, or the rate and amount of surface runoff? b) Exposure of people or property to water related hazards such as flooding or tidal waves? c) Discharge into surface waters or other alteration of surface water quality (e.g., temperature, dissolved oxygen or turbidity)? d) Changes in the amount of surface water in any water body? e) Changes in currents, or the course of direction of water movements, in either marine or fresh waters? Change in the quantity of ground waters, either through direct additions or withdrawals, or through interception of an aquifer by cuts or excavations? g) Altered direction or rate of flow of groundwater? h) Impacts to groundwater quality? Pot entially Significant Impact No 3 i) Alterations to the course or flow of flood waters? j) Substantial reduction in the amount of water otherwise available for public water supplies? Comments: See Mitigated Negative Declaration, Section E. Mitigation: See Mitigated Negative Declaration, Section F. go AIR QUALITY. Would the proposal: a) Violate any air quality standard or contribute to an existing or projected air quality violation? b) Expose sensitive receptors to pollutants? c) Alter air movement, moisture, or temperature, or cause any change in climate, either locally or regionally? d) Create objectionable odors? e) Create a substantial increase in stationary or non-stationary sources of air emissions or the deterioration of ambient air quality? Comments: a) b) c) d) e) Potentially PotentiaHy $1gngfi~ant Le~sthan Significant Unless Sigffiticant No [] [] [] [] [] 0 [] [] Grading and construction of the proposed four single-family residences would temporarily create dust and emissions associated with activity from construction equipment and vehicles. These short-term emissions are not considered significant impacts. Standard dust control measures would be implemented, including watering exposed soils and street sweeping. The Average Daily Traffic (ADT) projected to be generated by the proposed project is 40 trips. These few trips would not contribute significantly to the degradation of local air quality. See V.a. above. The proposed development of four single-family residences on the project site would not alter air movement, moisture, or temperature, or cause any change in climate. Neither development nor operation of the proposed four single-family residences is anticipated to create any objectionable odors. See V.a. above. 4 Mitigation: No mitigation measures are required. TRANSPORTATION/CIRCULATION. Would the proposal result in: a) Increased vehicle trips or traffic congestion? b) Hazards to safety from design features (e.g., [] sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? [] [] [] c) Inadequate emergency access or access to nearby uses? [] [] 0 [] d) Insufficient parking capacity on-site or off-site? [] e) Hazards or barriers for pedestrians or bicyclists? f) Conflicts with adopted policies supporting [] alternative transportation (e.g. bus turnouts, bicycle racks)? g) Rail, waterborne or air traffic impacts? h) A "large project" under the Congestion [] Management Program? (An equivalent of 2400 or more average daily vehicle trips or 200 or more peak-hour vehicle trips.) Comments: The City of Chula Vista Threshold Standards require that all street segments operate at Level of Service (LOS) "C" or better, with the exception that Level of Service (LOS) "D" may occur during the peak two hours of the day. The Engineering Division estimates that the project would generate 40 average daily trips. This is considered to be an insignificant number of vehicle trips relative to the capacity of both Date Street and Main Street, both of which would remain at an acceptable LOS C or better with the addition of project traffic. Date Street project site frontage improvements, consisting of the construction of a half cul-de-sac with a radius of 30 feet, ;vould be required as a condition of the tentative map. Mitigation: No mitigation measures are required. 5 BIOLOGICAL RESOURCES. WouM the proposal result in impacts to: a) Endangered, sensitive species, species of concern or species that art candidates for listing? b) Locally designated species (e.g., heritage trees)? c) Locally designated natural communities (e.g., oak forest, coastal habitat, etc.).'? d) Wetland habitat (e.g., marsh, riparian and vernal pool)? e) Wildlife dispersal or migration corridors? f) Affect regional habitat preservation planning efforts? Comments: See Mitigated Negative Declaration, Section E. Mitigation: See Mitigated Negative Declaration, Section F. [] [] [] [3 [3 than No ENERGY AND MINERAL RESOURCES. Would the proposal: a) Conflict with adopted energy conservation plans? b) Use non-renewable resources in a wasteful and inefficient manner? c) If the site is designated for mineral resource protection, will this project impact this protection? Potentially Sig~qcant lmpacl No Impact 6 /D-27 Comments: a) The proposed project does not conflict with the recently adopted CO2 Reduction Plan. b) The proposed project is subject to compliance with Energy Requirements of the Uniform Building Code and, therefore, should not result in the use of non-renewable resources in a wasteful and inefficient manner. c) The project is not located within an area designated for mineral resource protection as deemed in the City's General Plan. No significant energy and mineral resource impacts would result from the proposed project. Mitigation: No mitigation measures are required. IX. HAZARDS. Would the proposal involve: a) A risk of accidental explosion or release of [] hazardous substances (including, but not limited to: petroleum products, pesticides, chemieals or radiation)? b) Possible interference with an emergency response plan or emergency evacuation plan? D [] [] [] c) The creation of any health hazard or potential health hazard? d) Exposure of people to existing sources of potential health hazards? [] [] 0 [] e) Increased fire hazard in areas with flammable brush, grass, or trees? [] [] [] [] Comments: Project implementations would not pose a health hazard to humans. The project site is slated for residential development according to the Zoning Ordinance and General Plan. The project involves the division of land and eventual construction of four single-family residences. No significant hazards to human health safety would be created as a result of the proposed project. Mitigation: No mitigation measures are required. 7 Ko NOISE. Would the proposal result in: a) Increases in existing noise levels? b) Exposure of people to severe noise levels? Potentially Impact Comments: a) The City of Chula Vista Municipal Code (19.68.030) establishes residential land use noise standards at or beyond the property line during specified hours. Temporary construction would occur at the site; however, the short-term nature of the noise, and the fact that the proposed use will remain residential, render the potential noise factor to less than significant. Construction noise would be limited to daytime hours. The project will be required to comply with the City's adopted performance noise standhrds. No significant adverse noise impacts to residential uses are noted with standard construction practices. The project site is in close proximity to the Otay Valley Regional Park and Preserve area of the City's Draft Multiple Species Conservation Program Subarea Plan. Potential noise impacts to sensitive species off-site are addressed in the Mitigated Negative Declaration, Section E, under Biological Resources - Indirect Impacts. b) See X.a. above. Mitigation: No mitigation measures are required. PUBLIC SERVICES. Would the proposal have an effect upon, or result in a need for new or altered government services in any of the following areas: a) Fire protection? [] [] [] [] b) Police protection? [] [] [] [] c) Schools? [] ri [] [] d) Maintenance of public facilities, including [] [] [] [] roads? 8 e) Other governmental services? [] [] [] [] Comments: Both the Police and Fire Departments indicate that current levels of service would not be impacted by the proposed project. The applicant will need to obtain a letter of clearance from each of the affected school districts, and payment of developer fees will be required which will be made a condition of approval of the tentative map. The project would no have an adverse effect upon or result in a need for new or altered govemmental services. Mitigation: No mitigation measures are required. XII. Thresholds. Will the proposal adversely impact the City's Threshold Standards? As described below, the proposed project does not result in significant impacts to any of the Threshold Standards. a) Fire/EMS [] [] ~ [] The Threshold Standards requires that fire and medical units must be able to respond to calls within 7 minutes or less in 85% of the cases and within 5 minutes or less in 75% of the cases. The City of Chula Vista has indicated that this threshold standard will be met. The proposed project would_comply with this Threshold Standard. Comments: The Fire Department indicates that the distance to the nearest fire station is 3 miles. The Fire Department has made a number of recommendations that will become apart of the conditions of approval of the tentative map including the requirement for a fire hydrant, a fire lane along the north side of the property and a cul-de-sac. According to the Fire Department, the current levels of service can still be provided to the project site. Mitigation: No mitigation measures are required. b) Police The Threshold Standards require that police units must respond to 84% of Priority I calls within 7 minutes or less and maintain an average response time to all Priority 1 calls of 4.5 minutes or less. Police units must respond to 62.10% of Priority 2 calls within 7 minutes or less and maintain an average response time to all Priority 2 calls of 7 minutes or less. The proposed project would comply with this Threshold Standard. Comments: The Police Department indicates that current levels of service would not be impacted by the proposed project. Mitigation: No mitigation measures are required. 9 c) Traffic [] D [] ~ City-wide: Maintain'LOS "C" or better as measured by observed average travel speed on all arterial segments except that during peak hours a LOS of "D" can occur for no more than any two hours of the day. 2. West ofi-805: Those signalized intersections which do not meet the standard above may continue to operate at their current 1991 LOS, but shall not worsen. Comments: Th~ proposed project would generate a total of 40 vehicle trips daily. This is considered to be an insignificant number of vehicle trips. No adverse impacts to traffic/circulation would result from the project. The traffic engineering section indicates that the LOS "C" threshold would be maintained on affected arterial segments with the proposed project. Mitigation: No mitigation measures are required. d) Parks/Recreation The Threshold Standard for Parks and Recreation is 3-acres of neighborhood and community parkland with appropriate facilities per 1,000 residents east of Interstate 805. Comments: No park pad obligation will be required as the project site is located west of I405. No adverse impacts to parks or recreational opportunities would result. The parks and recreation threshold standard does not apply. Mitigation: No mitigation measures are required. e) Drainage o [] [] [] The Threshold Standards require that storm water flows and volumes not exceed City Engineering Standards. Individual projects will provide necessary improvements consistent with the Drainage Master Plan(s) and City Eng/neering Standards. The proposed project would comply with this Threshold Standard. Comments: See Mitigated Negative Declaration, Section E. Mitigation: No mitigation measures are required. f) Sewer 10 The Threshold Standards require that sewage flows and volumes not exceed City Eng/neering Standards. Individual projects will provide necessary improvements consistent with Sewer Master Plan(s) and City Engineering Standards, The proposed project would_comply with this Threshold Standard: Comments: The Engineering Department calculates that the project would generate approximately 1,060 gallons of effluent per day. An 8-inch sewer line is located in a utility easement flowing westerly along the northern property line. The sewer main connects to another 8-inch main flowing ~aortherly along Date Street. No significant sewer impacts would result from the proposed project. Mitigation: No mitigation measures are required. g) Water The Threshold Standards require that adequate storage, treatment, and transmission facilities be constructed concurrently with planned growth and those water quality standards are not jeopardized during grow-th and construction. The proposed project would comply with this Threshold Standard. Applicants may also be required to participate in whatever water conservation or fee off-set program the City of Chula Vista has in effect at the time of building permit issuance. Comments: No significant impacts to water storage, treatment and transmission facilities ~vould result from the proposed project. Mitigation: No mitigation measures are require& UTILITIES AND SERVICE SYSTEMS. Would the proposal result in a need for new systems, or substantial alterations to the following utilities: a) Power or natural gas? b) Communications systems? c) Local or regional water treatment or distribution facilities? d) Sewer or septic tanks? e) Storm water drainage? f) Solid waste disposal? [] [] 0 [] Comments: The proposed project consists of four single-family residences and would not result in the need for new systems or substantial alterations to any of the aforementioned utilities. Mitigation: No mitigation measures are required. XIV. AESTHETICS. Would the proposal.- a) Obstruct any scenic vista or view open to the public or will the proposal result in the creation of an aesthetically offensive site open to punic view? b) Cause the destruction or modification ora scenic route? [] [] [] [] c) Have a demonstrable negative aesthetic effect? d) Create added light or glare sources that could increase the level of sky glow in an area or cause this project to fail to comply with Section 19.66.100 of the Chula Vista Municipal Code, Title 19? e) Produce an additional amount of spill light? Comments: No significant scenic vistas or views open to the public exist through the site. According to the City's General Plan, Date Street is not designated as a scenic roadway. The proposed improvements such as continuation of Date Street and installation of a half cul-de-sac along with landscaped improvements will only enhance the area. The small residential project will not create a significant amount of spill light nor negative aesthetic effect onto the adjacent properties or roadways. Mitigation: No mitigation measures are required. XV. CULTURAL RESOURCES. Would the proposal: a) Will the proposal result in the alteration of or the destruction or a prehistoric or historic archaeological site? b) Will the proposal result in adverse physical or aesthetic effects to a prehistoric or historic [] [] [] [] o [] [] [] 12 -33 building, structure or object? c) Does the proposal have the potential to cause a [] [] [] [] physical change which would affect unique ethnic cultural values? d) Will the proposal restrict existing religious or sacred uses w/thin the potential impact area? O [] [] [] e) Is the area identified on the City's General Plan r~ [] [] [] EIR as an area of high potential for archeological resources? Comments: a) No prehistoric or historic archaeological sites are known or expected to be present within the impact area of the proposal. The project site has been fully graded. See XV.e. below. b) No buildings or structures are present within the impact area of the proposal and no prehistoric or historic objects are known or expected to be present within the impact area. See XV.e. belmv. c) The proposed physical changes would not affect unique ethnic cultural values. d) No religious or sacred uses exist within the impact area of the proposal. e) The project site is identified as an area of moderate potential for archaeological resources in the City's General Plan EIR. The project site ~vas previously graded to create the existing level pad area for the existing single-family residence. Based on the level of previous disturbance to the site and the relatively minor amount of additional grading that will be necessary to accommodate the proposed single family residences, the potential for impacts to archaeological resources is considered to be .less than significant. Mitigation: No mitigation measures are required. XVI. PALEONTOLOGICAL RESOURCES. Will the proposal result in the alteration of or the destruction of paleontological rexources? [] [] [] [] Comments: The project site is identified as an area of moderate potential for paleontological resoumes in the City's General Plan E1R. However, based upon the limited amount of additional excavation that W/Il be necessary to accommodate the proposed single-family residences, the potential for impacts to paleontological resource5 is considered to be less than significant. 13 Mitigation: NO mitigation measures are required. XVII. RECREATION. Would the proposal: a) Increase the demand for neighborhood or regional parks or other recreational facilities? b) Affect existing recreational opportunities? c) Interfere with recreation parks & recreation plans or programs? 0 0 [] [] Comments: The applicant would not be required to pay park fees as the project site is located west of 1-805. No significant impacts to Parks or Recreational Plans would result from the proposed project. Mitigation: No mitigation measures are required. XVIII. MANDATORY FINDINGS OF SIGNIFICANCE: See Negative Declaration for mandatoryfindings of signi, ficance. If an E1R is needed, this section should be completed. a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range ora rare or endangered plant or animal or eliminate important examples of the major periods or Califomia history or prehistory? Comments: a) See Mitigated Negative Declaration, Section E. Mitigation: No mitigation measures are required. 14 b) Does the project have the potential to achieve short-term, to the disadvantage of long-term, environmental goals? Comments: The project does'not have the potential to achieve short-term environmental goals to the disadvantage of long-term goals. The project is consistent with both the Zoning Ordinance, General Plan designation of the property, and ~he Southwest Redevelopment Specific Plan. Mitigation: No mitigation measures are required. c) 'Does the project have impacts that are [] [] r2 [] individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) Comments: The project does not have any impacts that are individually limited but cumulatively considerable. No significant cumulative impacts would be created as a result of the proposed project. Mitigation: No mitigation measures are required. d) Does the project have environmental effects [] [] o [] which will cause substantial adverse effects on human beings, either directly or indirectly? Comments: The analysis contained in the Initial Study found no evidence indicating the project would cause substantial adverse effects on human beings, either directly or indirectly. Mitigation: No mitigation measures are required. XIX. PROJECT REVISIONS OR MITIGATION MEASI3RES: Project mitigation measures are contained in Section F, Mitigation Necessary to Avoid Significant Impacts, and Table 1, Mitigation Monitoring and Reporting Program Checklist, of Mitigated Negative Declaration IS-99-23. 15 XX. AGREEMENT TO IMPLEMENT MITIGATION MEASURES By signing the line(s) provided below, the Property Owner and Operator stipulate that they have each read, understood and have their respective company's authority to agree to the mitigation measures contained herein, and Will implement same to the satisfaction of the Environmental Review Coordinator and City Engineer. Failure to sign the line(s) provided below prior to posting of this Mitigated Negative Declaration with the County Clerk shall indicate the Property Owner's and Operator's desire that the Project be held in abeyance without approval and that the Property Owner and Operator shall apply for an Environmental Impact Report. Printed Name and Title of Property Owner ,oraff; t,ve, Sign~u-re o~ Property Owner [or authorized representative] Date Printed Name and Title of Operator [if different from Property Owner] Signature of Operator [if different from Property Owner] Date XXI. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated," as indicated by the checklist on the following pages. [] Land Use and Planning [] Population and Housing · Geophysical · Water [] Air Quality [] Paleontology [] Transportation/Circulation · Biological Resources [] Energy and Mineral Resources [] Hazards [] Noise [] Public Services [] Utilities and Service Systems [] Aesthetics [] Cultural Resources [] Recreation [] Mandatory Findings of Significance 16 XII. DETERMINATION: On the basis of this initial evaluation: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATiVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A MITIGATED NEGATiVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a significant effect(s) on the environment, but at least one effect: 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially significant impacts" or "potentially significant unless mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, there WILL NOT be a significant effect in this case because ali potentially significant effects (a) have been analyzed adequately in an earlier EIR pursuant to applicable standards and Co) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. An addendum has been prepared to provide a record of this determination. Marilyn R.F. Ponseggi Environmental Review Coordinator City of Chula Vista Da~e J:\PlanningXMARIA\Initial Study\IS-99-23chklst.doc 17 : ~ :S UBDIV/SION ?MAP~:APpI~ Proposed Use: ~Singl, e Family Residential Project Area:46,000 S.F. 7o. Minimum Lot Size: 5623 General Plan. Designation: RLM of Lots: 5 Owner/Developer:..~James'C;'~Hurrell Address: 6009 Winchester St., San Dieqo CA 9.2139 No. of Units Average Lot Size: 7680 ~85-uzd0 Contact~Person: ~James Hurrell Phone 479-0528 Enolneerln~F~-~-~Aloert- En~lneermnq -Inc. - ~.~Ad~ess. ~..:. q z ~. nroa~way, ~nula ~V~ sta ~CA 91910 .... Other: ' .,~ ....., :~t.~t.:,~t ....'~'":':'~" ' ' :' THE ClT'I 'OF CHULA VISTA DISCLOSURE STA~:~,~IENT 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, Planning Commission, and all other official bodies. The following information must be disclosed: List the names of all persons having a financial interest in the property which is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. James C. Hurrell Yvonne D. Hurrell 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. if any person* identified 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 the trust. Have you had more than 5;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, pie.ese indicate person(s): __ Please identify each find every person, including any agents, employees, consultants, or independent contractors who. you have assigned to represent you before the City in this matter. James H. Algert, Algert Engineering, Inc. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Councilmember in the current or preceding election period? Yes__ No X If yes, state which Councfimember(s): Date: 11/04/98 * * * (NOTE: Attach additional pages ~ Sigfiature of contractor/applicant James C. Hurrell Print or type name of contractor/applicant * pcrxo,tisdcfincdax: "Anyitldivtdual, finn. co-paratcrship, jointvcnmrc.~as-~ocatio,[$ocialcub, pater~m orgat,t-.atm,~corporatto,g~tatgtmagrecetv~r,~ync~cat~ this ami any other county, ci~' m~d country, city mutlicipali~)', distric~ or other political xubd'visiot~ or mi)' other group or corrdabtation actblg as a uniL* Permit AppLicant: AppLicant's A~dress: Ty~ cf Permit: Agre~T~nt Oste: Deposit Davenant Permit Pr~essing Agree=eat buu~ winchester ~., San Diego-CA 92139 Tent. Map . S2rflflfl. OO This Agreement ("Agreement-) between the City of Chute Vista, a chartermd~untclpa[ corporation (-City~) a~ the · referees to the fo&Lowing facts: ~ereas, A~ttcant has a~[i~ to the City for a ~mit of the t~ aforerefere~ C"Pe~lt") ~ich the City has r~uir~ to ~ obtafn~ as a =~itl~ to ~ltting ~ticant to~vetop a ~rce[ of pretty; ~, ~ereas~ the City ul[[ S~ur ex~es in o~r to proc~; said ~m[t throb the ~rf~ ~rt~nt; a~ ~fore the vario~ ~ards a~ c~issi~; of the City ("Pr~essing Services"); ~erees, the ~r~se of thii agre~nt Is to rei~rse the City for tit e~es it wi[[ t~ur in ~ctim with providing the Processing Services; No~, therefore, the parties do hereby agra, in excha~e for the ~t~[ praises herm{n c~t~i~, as 1. A~[icant~s Duty to Pay. A~[ican; shaLL pay ail of City's ex--es t~urr~ in prov[ding Processt~ Services retat~ to A~[ic~t's lnc[~ing ail of City's direct a~ overhead costs re[at~ thereto. This ~ty of A~[lcant shaLL ~ referr~ to herein "A~[icant~s Duty to Pay.~ 1.1. A~tlcant~s De~sft Duty As ~rtta[ ~rfo~nce of A~[tcant~s Duty to Pay~ ~[icant she[[ ~s[t the ~t aforerefer~c~ 1.1.1. City shaLL charge its [a~fu[ ex~es I~urr~ In providing Pr~ess[ng Services aga[~t Deposit. ]f~ after the c~[us[en of processing A~[icant~s Perm[t~ any ~rtion of the De. sit r~l~ C[ty shaLL return said balance to A~[icant ~ithout interest thereon. If, ~ring the processing of A~[icant~; Pe~it~ the ~t of the Deposit ~c~s exhaust~, or is t~[nentty LikeLy to ~c~ exhaust~ In the opinion of the City, ~n notice of s~ City, A~[icant shaLL forthwith provide such aNiti~[ de.siC as City shat[ caLcuLate es feasibly necessary to conti~ to provide Processing Services. The duty of A~[icant to tnltia[[y de.sit I~ to I~[~nt said ~sit as h~rein r~ir~ she[[ ~ k~ as '~[ic~t~s Oe~stt Out~". Dity sha[t~ ~n the co~lti~ that A~[Icant is ~t tn breach of A~[$csnt~s Duty to Pay o~ ~[icant~ or for failure to process ~licant.s Pe~it within the ti~ fr~ r~st~ by ~licant or esti~t~ by City. 2.2. By execution of this agre~nt, A~[icant shs[[ have ~ right to the Pe~it for ~lch A~[Icant has Pity shaLL ~e its discretion in eva[umti~tieant~m Pe~ft A~[icatl~wlthout ~egard to~[imant'm ~r~ise to ~y for 3.1. Suspension of Processing. in addition to at[ other rights and re~edies ~hlch the City shaft otherwise have It Law or e~ulty, the City has the right to suspend and/or u$thhoLd the processing of the Permit ~nich ia the subject miter of this Agree~nent, as weLL as the Permit ~hich may be the subject laetter of any other Permit whlchAppiicsnt has before the City. 3.2. Civil CoL[scrim. in additto~ to ali other rights and r~edies which the City aha[[ otherwise have at law or e~Jlty, the City has the right to coLLect iLL e~rns k~lich are or may bec~e due heralder by civil action, a~d upon InStiLling lltlgatio~ to coLLect same, the prevailing party shall be entitled to reasonable attorney.s feel end costs. . ~isceLLaneous, &.l Notices. Ail r~tlces, demands'or requests prov[ded for or permitted to be given IXJrsusnt to this Agremae~t ~ast be in ~ritfng. ALL ~tices, d~s I~ r~sts to ~ sent to any ~rty shall ~ ~ to hive ~en pro'fly given or serv~ ~rs~[Ly serv~ or de~sJt~ in the Unlt~ States~l[. i~ress~ to luch ~rty, ~stage P~e~id, register~ or certifi~, ~ith return receipt r~est~, at the a~resses tdentifl~ adjacent to the siQ~tu~es of the ~rties r~resent~. 4.2 Governing Laa~e~. This Agrmnt she[[ ~ gover~ ~ 8~ co~tr~ in Iccorda~e with the [i~ of the State of CaLifornia. ~cti~ arising ~er or retattng to this Agremnt shat[ ~ bro~ht ~[y in the f~era[ or state c~rts [ocat~ in San :o~ty, State of California, a~ If a~[Icab[e, the City of Chute Vlsta~ or as close thereto as ~sslb[e. Ve~ for this gre~nt, e~ ~rfo~e hero.er, she[[ ~ the City ef ~u[a Vista. 4.~ ~u[tip[e Stg~torles. If there are ~[ttp[e stg~torles to this agr~nt ~ ~ha[f ef ~[fc~t. each of a~h sl~torfes shall ~ ointty a~ severa[[y tlab[e for the ~rfo~e of ~[Icant*s ~ties herein set forth. ~.~ Sig~tory Authority. The signatory to this agre~nt hereby uarrants ~ represents that he Is the ~[y ~slg~t~ agent for the ~[icant a~ has ~en duly authorized by the A~[icant to execute this Agre~nt ~ ~ha[f of the A~[tcant. Stg~tory ~at[ ~ ~rsona[[y [~ab[e for A~[icant~s Duty to Pay e~ A~[lcant~s Duty to De. sit tn the event he has ~t ~en uthorized to execute this Agre~nt by Applicant. A~{tcant sha[[ defer, I~ffy a~ hold ha~[ess the City, Its e[ect~ a~ a~lnt~ officers a~ ~toyees against any cLai~, suits, actions er proce~ings, J~icia[ or a~inistratfve, for urits, orders~ Inj~t on er other ~[{ef, ~ges, liability, cost a~ eX~e (f~[~ing aithout {tmitati~ otter.s, fees) ertsl~ ~ of C{ty*s acti~ ~o?ssing or issuing A~[icant*s Pe~it, er in exercising any discretl~ reLet~ thereto t~[~ing ~t ~t [Imlt~ to the ~wng of proof ~vir~nta[ revlon, the ho[ding of ~[Ic hearings~ the exte~l~ of ~ process rights~ except ~[y for ~ose c[ai~, suits~ acti~ or proce~ings arising fr~ the so{e neg[lg~e or sole uit[fu[ co~t of the City, Its fficers, or ~[oye~s ~o~n to, ~t not object~ to, by the ~[Icant. A~[lcant*s I~lf[catl~ shall I~[~e any a~ costs~ ex~nses, attorneys~ fees a~ liability i~urr~ by the City, It officers agents, or ~{oyees in defe~ing aainst s~ch c[ai~, ahether t~e sa~ proceed to j~g~nt or ~t. Further~ A~[lcant~ at Its o~ ex~e, shall, ~n -ftten r~uest by :he C~ty, dare. any such suit er action brought agai~t the City, Its officers, agents~ or ~p[icant's I~if[cat[on of City shall not ~ [lmft~ by any prior or s~s~uent dec[aratl~ by the ~[lcant. At discretion, the Ci:y~y participate at its o~ ex~e In the defe~e of ~y s~h acrid, ~t such ~rtlcl~tion relieve the a~{fcant of any obligation I~s~ by this c~itl~. 4.6 A~inistrattve C[ai~ R~tr~nts e~ Pre.res. No suit or arbitration shall ~br~ght arising ~t of this agre~nt, egoist the Clty~[ess a claim has first present~ In urlttng a~ fl[~ ufth the City of ~u[a Vista a~ act~ ~ by the City of Chute Vista In accotone ulth proc~ures set forth in Chapter 1.~ of the Chute Vista N~tcl~[ C~e~ as s~ my fr~ tl~ to tl~ ~ ~, (he 'ovisio~ of ~ich are t~ar~rat~ by this refere~e as If fully set forth herein, a~ such ~[tctes a~ proc~ures ~ by City In the I~[~ntatlon of s~. U~n r~est ~ City, C~u[tant she[[ ~et ~ c~fer In go~ faith uith City for ~r~se of resolving any dis~te over the te~ of this Agr~nt. Now therefore, the parties hereto, havlr~ read and ~derstoed the terms and cenclltl~-~ of this egreeaent, d~ hereby :press their oo~aent to the terms hereof by setting their hand hereto ~n the date act forth adjacent thereto. ted: City of Chule Vista 276 Fourth Avenue Chulo Vista, CA by:. ted: Ja~es C. Hurrell ~l~19 Win~h~ster St 2 RESOLUTION NO. RESOLUTION OF THE CHULA VISTA CITY COUNCIL ADOPTING THE MITIGATED NEGATIVE DECLARATION AND APPROVING A TENTATIVE SUBDIVISION MAP FOR PARK VIEW ESTATES, A 0.99-ACRE FIVE LOT SUBDIVISION FOR SINGLE-FAMILY DWELLINGS UNITS LOCATED AT 387 DATE STREET, CHULA VISTA. RECITALS Project Site WHEREAS, the area of land commonly known as "Park View Estates" Tentative Subdivision Map (PCS-99-05), Chula Vista Tract No. , which is the subject matter of this resolution, and is diagrammatically represented in Exhibit "A" attached hereto and incorporated herein by this reference; and for the purpose of general description herein consists of 0.99 acres located at the southerly terminus of Date Street, located within a single-family residential (R-I-5-P) Zone, within the Montgomery Specific Plan area with a Land Use Designation of Low/Medium Density Residential (6 - 11 dwelling units per acre), and within the General Plan Land Use Designation of Low Medium Residential (6 - 11 dwelling units per acre), consisting of APN 631-012-08-00 ("Project Site"); and Project; Application for Discretionary Approval WHEREAS, on December 9, 1998, James C. Hurrell ("Developer"); filed a tentative subdivision map application with the Planning Department of the City of Chula Vista and requested approval of the Tentative Subdivision Map (PCS-99-05) known as "Park View Estates," Chula Vista Tract No. , in order to subdivide the project site into five (5) single-family residential lots ("Project"); and Environmental Determination WHEREAS, the Resource Conservation Commission has determined that the Initial Study prepared by the Environmental Review Coordinator was adequate and recommended adoption of a Mitigated Negative Declaration on November 4, 2002, in compliance with the California Environmental Quality Act. The Planning Commission recommended adoption of the same Mitigated Negative Declaration on December 11, 2002. Planning Commission Record on Application WHEREAS, the Planning Commission held an advertised public hearing on the said project on December 11, 2002 and voted 5-1-0-0 to recommend that the City Council approve the Project based on the findings and subject to the conditions listed below in accordance with Planning Commission Resolution PCS-99-05; and City Council Record on Application Resolution No. __ Page 2 II. Ill. IV. WHEREAS, the City Council set the time and place for a hearing on the Project and Notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least 10 days prior to the hearing; and WHEREAS, a duly called and noticed public headng was held at the time and place as advertised on January 14, 2003 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: PLANNING COMMISSION RECORD The proceedings and all evidence on the project introduced before the Planning Commission at their public hearing on this project held on December 11, 2002 and the minutes and resolution resulting therefrom, are hereby incorporated into the record of this proceeding. CERTIFICATION OF COMPLIANCE WITH CEQA The City Council does hereby find that the environmental determination of the Environmental Review Coordinator, the Resource Conservation Commission, 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 of Chula Vista. INCORPORATION OF MITIGATION MEASURES The City does hereby adopt the mitigated negative declaration and incorporate herein as conditions for this approval all applicable mitigation measures, as set forth in the Environmental Document IS~99-23. TENTATIVE SUBDIVISION MAP FINDINGS Pursuant to Government Code Section 66473.5 of the Subdivision Map Act, the City Council finds that "Park View Estates" Tentative Subdivision Map Chula Vista Tract No. PCS-99-05, as conditioned herein is.in conformance with the various elements of the City's General Plan and the Montgomery Specific Plan based on the following: 1. Land Use The General Plan Land Use Designation is Low Medium Residential (6 - 11 dwelling units per acre). The Montgomery Specific Plan Land Use Designation is Low/Medium Density Residential (6 - 11 dwelling units per acre). The proposed 5-lot subdivision is within the allowable density and permitted number of dwelling units. Therefore, as conditioned, the Project is in substantial compliance with the City's General Plan and the Montgomery Specific Plan. 2. Circulation Resolution No. __ Page 3 All of the on-site and off-site public streets required to serve the subdivision will be constructed or paid for by the developer in accordance with the Conditions of Approval. The public streets within the Project will be designed in accordance with the City design standards and/or requirements and provide for vehicular and pedestrian connections with adjacent streets. 3. Housing The housing provided within the Project will be market-rate housing. The Project will provide additional single-family home ownership opportunities in an established western Chula Vista neighborhood, within the Montgomery Specific Plan area. 4. Conservation The Project site is known to have significant environmental impacts, which are addressed by the mitigation measures. The mitigation monitoring and reporting program is incorporated into the conditions of approval. 5. Parks, Recreation and Open Space The Project will be required to pay park acquisition and development fees prior to approval of a final map, The individual lots possess large rear yard areas, in addition to access to the adjacent Otay River Valley Regional Park. 6. Seismic Safety The Project is in conformance with the goals and policies of the Seismic Element of the General Plan for this site. The site is not located adjacent to an identified or inferred geologic fault. 7. Safety The Project is within the General Plan standard for response time of both Police and Fire services. The emergency services agencies have reviewed the proposed subdivision for conformance with City safety policies and have determined that the proposal meets the City Threshold Standards for emergency services. 8. Noise The Project will be required to meet the residential standards of the General Plan's Noise Element and Municipal Code. The dwelling units will be required to meet the Uniform Building Code standards with regard to acceptable interior noise levels. 9. Scenic Highway The Project does not abut a scenic route or gateway. 10. Bicycle Routes Resolution No. __ Page 4 The public street within and adjoining the Project is not required to include a designated bike route, but there will be a trail for mountain bikes within the adjacent Otay River Valley Regional Park. 11. Public Buildings No public buildings are planned or proposed for the Project. Pursuant to Government Code Section 66412.3 of the Subdivision Map Act, the Council certifies that it has considered the effect of this approval on the housing needs of the region and has balanced those needs against the public service needs of the residents of the City and the available fiscal and environmental resources. Pursuant to Government Code Section 66473.1 of the Subdivision Map Act, the configuration, orientation, and topography of the site allows for the optimum siting of lots for natural and passive heating and cooling opportunities and that the development of the site will be subject to site plan and architectural review to insure the maximum utilization of natural and passive heating and cooling opportunities. The site is physically suitable for residential development and the proposal conforms to all standards established by the City for such projects. The conditions herein imposed on the grant of permit or other entitlement herein contained is approximately proportional both in nature and extent to the impact created by the proposed development BE IT FURTHER RESOLVED That the City Council does hereby approve the Project subject to the general and specific conditions set forth below: VI. GENERAL CONDITIONS OF APPROVAL The approval of the foregoing Project is hereby conditioned as follows: Environmental: Prior to the commencement of grading, temporary erosion control devices shall be implemented. These devices include desilting basins, berms, hay bales, silt fences, dikes and shoring. These measures shall be reflected in the grading and improvement plans to the satisfaction of the City Engineer. Prior to the issuance of any grading permit and/or public construction permit the City Engineer shall verify that the final grading and improvement plans comply with the provisions of California Regional Water Quality Control Board, San Diego Region Order No. 2001-01 with respect to construction-related water quality best management practices. Prior to the issuance of any grading permit and/or public construction permit, the Environmental Review Coordinator shall verify that the following condition is included as a special note on the final grading and improvement plans. In order to avoid impacts to raptor nests, tree removal shall either be avoided between February I and July 31 or, if unavoidable, surveys of affected trees shall be performed for active raptor nests by a Resolution No. __ Page 5 qualified biologist to determine absence or presence. If raptor nests are absent in the affected trees, construction may proceed; if present, removal of trees with an active raptor nest shall be prohibited and the qualified biologist shall resurvey the trees prior to tree removal. Prior to tree removal between February 1 and July 31, a survey letter report prepared by a qualified biologist shall be submitted to the satisfaction of the Environmental Review Coordinator. Prior to the issuance of any grading permit and/or public construction permit, the Environmental Review Coordinator shall vedfy that the following condition is included as a special note on the final grading and improvement plans. In order to avoid impacts to raptors from construction noise, avoidance of construction between February 1 and July 31 is recommended or, if unavoidable, a survey shall be conducted for active raptor nests within the potentially affected area by a qualified biologist to determine absence or presence. If raptors nests are absent in the affected trees, construction may proceed; if present, the qualified biologist shall determine if construction may proceed and if so, shall monitor any raptor nests at the beginning of construction activities and as deemed necessary by the Environmental Review Coordinator throughout construction to ensure that nesting birds are not disturbed. Prior to the commencement of construction between February I and July 31, a survey letter report prepared by a qualified biologist shall be submitted to the satisfaction of the Environmental Review Coordinator. Prior to the issuance of any grading permit and/or public construction permit, the City Engineer shall verify that the grading and improvement plans comply with the provisions of California Regional Water Quality Control Board, San Diego Region Order No. 2001- 01 with respect to permanent, post-construction water quality best management practices (BMPs). The permanent, post-construction BMPs shall consist of bioswales immediately south of the future Date Street cul-de-sac with an energy dissipater, north of MSCP Preserve Area, or other filtration system in this location acceptable to the City Engineer and Environmental Review Coordinator. En.qineerin.q: Submit and obtain approval by the City Engineer of grading plans prepared by a registered civil engineer. All grading and pad elevations shall be within 2 feet of the grades and elevations shown on the approved tentative map or as otherwise approved by the City Engineer and Planning Director. Grading design shall be in accordance with Grading Ordinance 1797 as amended. All grading shall be designed as to drain towards either the pdvate access driveway or onto Date Street. Only undisturbed areas of the property will be allowed to drain across the property line to the south. 8. Submit and obtain approval by the City Engineer for an erosion and sedimentation control plan as part of grading plans. 9. Show the location of cut/fill lines based on existing topography on grading plans. 10. Show the location of flood lines within the property limits and within 50 feet of the project boundaries. Resolution No. __ Page 6 11. Submit a list of proposed lots indicating whether the structure will be located on fill, cut, or a transition between the two situations prior to approval of the final map. 12. Submit a detailed geotechnical report prepared and signed and stamped by both a registered civil engineer and certified engineering geologist pdor to approval of grading plans and issuance of a grading permit. 13. All onsite drainage facilities shall be private. Drainage at the south end of Date Street onto the adjacent City property shall be designed to the satisfaction of the City Engineer. 14. Submit a precise drainage study prepared by a registered civil engineer and approved by the City Engineer prior to issuance of a grading permit or other development permit, Design of the drainage facilities shall consider existing onsite and offsite drainage patterns. The drainage study shall show how downstream properties and storm drain facilities are impacted. The extent of the study shall be as approved by the City Engineer. 15. Development of Park View Estates shall comply with all regulations established by the United States Environmental Protection Agency (USEPA) as set forth in the National Pollutant Discharge Elimination System (NPDES) permit requirements for urban runoff and storm water discharge and any regulations adopted by the City of Chula Vista pursuant to the NPDES regulations or requirements. 16. Paved access, fifteen feet wide minimum, is required to all existing sewer manholes within the property capable of withstanding H-20 wheel loading with no obstructions or parking within. 17. Any existing sewer manholes within the project shall be adjusted to final grade to the satisfaction of the City Engineer. 18. All sewer laterals shall be privately maintained from the house to the City maintained public sewer main. 19. Half street improvements and transitions to existing pavement in Date Street shall be required to the satisfaction of the City Engineer. Said improvements shall include a half cul-de~sac with 30 foot radius, monolithic curb, gutter and sidewalk, transition to existing pavement to provide adequate vehicle access and turnaround area, installation of one 150 watt street light and installation of one fire hydrant. Street improvements shall also include an appropriate drainage structure to convey street runoff at the end of Date Street to the existing natural drainage way to the south. Detailed horizontal and vertical alignment of the centerline of Date Street shall be reflected on the improvement plans for the development. 20. The private access driveway to lots 3 through 5 shall be constructed of Portland cement concrete and maintain a minimum width of 20 feet with no parking allowed. 21. Grant on the final map any necessary sewer easements to the City for the existing 8- inch public sewer main along the northerly property line to maintain a 15-foot wide easement along the entire length of the sewer main. Resolution No. __ Page 7 22. Dedicate on the final map additional public street right-of-way on Date Street as needed for the half cul-de-sac improvements. 23. A reciprocal private access, parking sewer and general utility easement to subsequent owners of Lots 3, 4 and 5 pursuant to the requirements of Section 18.20.150 of the Chula Vista Municipal Code shall be labeled on the final map. 24. Agree 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 wit regard to this subdivision pursuant to Section 66499.37 of the State Map Act provided the City promptly notifies the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. 25. Agree to hold the City harmless from any liability for erosion, siltation or increase flow of drainage resulting from this project. 26. Agree to ensure that all franchised cable television companies ("Cable Company") are permitted equal opportunity to place conduit and provide cable television service to each lot within the subdivision. Restrict access to the conduit to only those franchised cable television companies who are, and remain in compliance with, all of the terms and conditions of the franchise and which are in further compliance with all other rules, regulations, ordinances and procedures regulating and affecting the operation of cable television companies as same may have been, or may from time to time be issued by the City of Chula Vista. 27. Present written verification to the City Engineer from Cai American water company that the subdivision will be provided adequate water service and long-term water storage facilities. 28. Tie the boundary of the subdivision to the California System-Zone VI (NAD '83). 29. Submit copies of the final map and improvement plan in a digital format such as (DXF) graphic file prior to approval of the Final Map. Provide computer aided Design (CAD) copy of the Final Map based on accurate coordinate geometry calculations and submit the information in accordance with the City Guidelines for Digital Submittal in duplicate on 3 ¼ HD floppy disk prior to the approval of the Final Map. 30. The Declaration of Covenants, Conditions and Restrictions (CC&R's) shall include provisions assuring maintenance of the private driveway to Lots 3, 4 and 5. The City of Chula Vista shall be named as party to said Declaration authorizing the City to enforce the terms and conditions of the Declaration in the same manner as any owner within the subdivision. 31. All utilities serving the property and existing utilities located within or adjacent to the property shall be located underground in accordance with the Chula Vista Municipal Code. New utilities serving the property shall be located underground pdor to issuance of building permits. Resolution No. __ Page 8 32. Comply with all applicable sections of the Chula Vista Municipal Code. Preparation of the Final Map and all plans shall be in accordance'with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision Manual. Planninq: 33. The final map shall be prepared by a licensed civil engineer, and shall incorporate all the conditions of approval and be completed to the satisfaction of the Director of Planning and Building. 34. Prior to any use of the project site or issuance of any building permits, all conditions of approval shall be completed to the satisfaction of the Director of Planning and Building. 35. A conceptual landscape plan for street tree and front yard planting shall be prepared by a registered Landscape Architect per Landscape Manual and shall be submitted for review with the grading plan submittal and approved by the Landscape Planner. 36. A fencing plan shall be provided showing 6-ft. screening solid wood fencing beyond the front yard setbacks between lots along the side and rear yard property lines, to protect the adjacent preserve area within the Otay River Valley Regional Park. The fencing plan shall be reviewed with the grading plan submittal and approved by the Landscape Planner. 37. A water management plan and irrigation plans for the front yard areas shall be submitted along with the grading plan for review and approval by the Landscape Planner. 38. The Fire Department has indicated that a minimum fire flow of 1,000 gallons per minute is required, and a permanent fire hydrant is required on the public street. The utility and access easement shall be a minimum 20-ft. unobstructed width and marked as a dedicated fire lane; however the turn-around or hammerhead shown on the tentative map will not be required for this project, which would adversely affect the development of lot four. 39. The developer must submit a letter from the Fire Department to the California-American Water Company stating the fire flow requirements. A preliminary study of the project shows that a main extension of approximately 350-ft. of 6-inch PVC pipe will be required in order to supply the proposed 6-inch fire hydrant and provide new domestic water service installations. 40. The Sweetwater Union High School District is requesting that the developer annex the project into the Community Facility District No. 10 to mitigate project impacts to the district. The developer will come to an agreement with the school district prior to the issuance of building permits. 41. The Chula Vista Elementary School District is requesting that the developer annex the project into their new generic Community Facility District No. 10 to mitigate project impacts to the district. The developer will come to an agreement with the school district prior to the issuance of building permits. Resolution No. __ Page 9 VII. 42. Ensure with all utilities that the location of all existing utility facilities will be protected in place prior to commencement of grading, All utilities shall be underground within the subdivision, 43. All Park and Recreation pad fees shall be paid at the issuance of the final map pursuant to Chapter 17.10 of the Chula Vista Municipal Code. 44. All building plans must comply with 2001 Energy requirements, 2001 Uniform Building Code, Uniform Mechanical Code, Uniform Plumbing Code, and 2001 National Electrical Code. 45. Approval of this tentative subdivision map 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. 46. Comply with all other applicable sections of the Chula Vista Municipal Code, including the Subdivision section that requires that the final map shall be submitted within 36 months unless an application for an extension is made per Section 18.12.140. Preparation of the Final Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance and Subdivision Manual. 47. 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 tentative subdivision map, (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 tentative subdivision map where indicated, below. Applicant's/operator's compliance with this provision is an express condition of this tentative subdivision map and this provision shall be binding on any and all of Applicant's/operator's successors and assigns. EXECUTION AND RECORDATION OF RESOLUTION OF APPROVAL The property owner and the applicant shall execute this document by signing the lines provided below, said execution indicating that the property owner and applicant have each read, understood, and agreed to the conditions contained herein. Upon execution, this document shall be recorded with the County Clerk of the County of San Diego, at the sole expense of the property owner and/or applicant, and a signed, stamped copy of this recorded document within ten days of recordation to the City Clerk shall indicate the property owners/applicant's desire that the project, and the corresponding application for building permits and/or a business license, be held in abeyance without approval. Said document will also be on file in the City Clerk's Office and known as document No. __ Signature of Property Owner Date Resolution No. Page 10 VIII. 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. IX. 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C - CD ~ ~ I p.. n ~~ i¡~~~ ~Q ,~~~ ;Þ' -c o - ~. 0 J:'- (I) 5- D) D) c..< .c -. r:: en D)..... ;¡.D) (I) ø City Council/Redevelopment Agency Joint Meeting January 21, 2003 Lorena Lopez 288 Broadway SP 8 Chula Vista, CA 91910 Jeanette Charlton 521 Orange Ave. #7 Chula Vista, CA 91911 Rafael S. Courtney 395 H Street, Suite B Chula Vista, CA 91910 Thomas A. (Tam) Horning 345 E Street Chula Vista, CA 91910 Consent Calendar Agenda Item # 2 Project Area Committee Formation Proposed Added Area ELECTED PAC MEMBERS Residential Tenant Business Owner Business Owner Business Owner Broadway Trailer Park Anthony's Auto Center 305 E Street Real Estate Investment Harley-Davisdson ~ Ie) 1 of 2 DOCUMENTS DEERING'S CALIFORNIA CODES ANNOTATED Copyright (c) 2003 by Matthew Bender & Company, Inc. a member of the LexisNexis Group. All rights reserved. *** THIS SECTION IS CURRENT THROUGH THE 2003 SUPPLEMENT *** (2001-2002 SESSION) GOVERNMENT CODE TITLE 9. Political Reform CHAPTER 7. Conflicts of Interest ARTICLE 1. General Prohibition GO TO CODB ARCHIVB DIRECTORY FOR THIS JURISDICTION Cal Gov Code § 87105 (2003) § 87105. Disclosure of financial interest; Recusal from discussing and voting on issue (a) A public official who holds an office specified in Section 87200 who has a financial interest in a decision within the meaning of Section 87100 shall, upon identifying a conflict of interest or a potential conflict of interest and immediately prior to the consideration of the matter, do all of the following: (1) Publicly identify the financial interest that gives rise to the conflict of interest or potential conflict of interest in detail sufficient to be understood by the public, except that disclosure of the exact street address of a residence is not required. (2) Recuse himself or herself from discussing and voting on the matter, or otherwise acting in violation of Section 87100. (3) Leave the room until after the discussion, vote, and any other disposition of the matter is concluded, unless the matter has been placed on the portion of the agenda reserved for uncontested matters. (4) Notwithstanding paragraph (3) I a public official described in subdivision (a) may speak on the issue during the time that the general public speaks on the issue. (b) This section does not apply to Membe~s of the Legislature. HISTORY: Added Stats 2002 ch 233 § 1 (AB 1797). rnYOf CHUIA VISTA January 21, 2003 TO: FROM: Deputy Mayor Rindone David D. Rowland& City Manager SUBJECT: Coors Amphitheater/South Bay Partnership In response to your attached letter, David Swift has met with the South Bay Partnership and James Marcelino, and all issues outlined in your letter have been addressed. In fact, Coors was recently recognized for its cooperation with the South Bay Partnership. Attachment cc: Mayor and City Council Members ~ ~ I¿.... ~ ~.........~........ ..................""""""" City of Chula Vista Department of Recreation Received ,¡Om ;¡.:J . ,) CITY OF CHUL,;.\ V¡srA 1 t\~~I~ / ~ .. (?/ r/' ~"~lfr' (þ JERRY RINDONE COUNClLMEMBER November 25, 2002 Dave Rowlands, City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, Ca 91910 Re: ership / Coors ~ß,j ~P1 I I~ CO((L~~ Dear Mr. I recently received an e-mail (enclosed) and a phone call from Mr. James Marcelino, a Coordinator for the South Bay Partnership. In the past, through a grant entitled the HIPZ Project, diverse community sectors and management at Coors would voluntarily meet to discuss ways to ensure the safety of concert attendees. The HIPZ grant just recently ended, but Mr. Marcelino ~ O(h",~~I? like to continue meeting with Coors management personnel. Unfortunately, ~ ~ Swift, t~ice-President of Coors, is not responding to their request for a meeting. As you know, Coors is within the City ofChula Vista limits, and we, as the governing body of Chula Vista, have the responsibility to ensure the safety of our residents and ensure the enforcement of city policies. Just recently a death occurred at Coors that was alcohol related. This incident has raised several concerns including, (1) parking lot enforcement, (2) use of signage in the parking lot, (3) finding ways to prevent future deaths from happening, and (4) enforcing the zero tolerance for underage drinkers. Now that the 2003 concert calendar has been completed, Mr. Marcelino would like to establish a plan of preventive action before the concert season begins. Would you ask staff to review these concerns, contact Mr. Swift, and then report back to me? As always, I appreciate your leadership and insight. I look forward to hearing from you SOOIi. ~> Sincerely, ~,:( 6e~~~ber 276 FOURTH AVENUE' CHULA VISTA· CALIFORNIA 91910 . (619) 691-5044' FAX (619) 476-5379 jrindone@ci.chula-vista.ca.us @r.,!tc"",ur""'Re"YcledP"I'"' / f'\ \outh Boy Kírtnersh~ p ITE.\l.lir & I It "\L\:'-." ~lj~\'lC¡-::) .\Ct:~:\C\ Ú')O C)\!'URl) 5TH.F,!·:T o (:11: ~ \ \',,<ï\,';' \ ';)l()! ] (,1 ').__~I.'t()-.) 12i ()!q--FJ()-<),)O-l- " October 3 L 2002 David A. Swift VP San Diego Region Coors Amphitheater 2050 Entertainment Circle Chula Vista, Ca 91911 Dear Mr. Swift: The South Bay Partnership, a coalition of the region·s active collaboratives addressing substance abuse prevention and public health issues since 1997, would like to arrange a "concert season debriefing meeting" with you and other staff designees for mid - late November 2002. The purpose of this meeting is to continue moving forward with the policy recommendations set forth vÎa the High Intensity Prevention Zone (HIPZ) project, directed by the National City Police Department and the Institute for Public Strategies. Our coalition is the designated community- driven, advocacy group that ,,-ill coordinate the implementation and development of prevention policies for local cities and entertainment venues in the South Bay. As a continued "best practice" of the HIPZ project, diverse community sectors (city. law enforcement, community-based organizations, etc.) and management staff at Coors would voluntarily meet to discuss current preventive measures, policies and practices by which to ensure the highest level of safety at the venue and for community residents throughout San Diego County, namely South Bay. We would like to continue this momentum by securing an on-going dialogue at least twice a year with Coors Management staff, to discuss policies that will maintain safety standards and reduce youth access to alcohol. We would like to discuss the following with you and your staff in November 2002: I. Introduce the South Bay Partnership (Facilitator: James Marcelino, M.A.) II. Advocate for the continuance of all operational improvements (stated 7.09.02 City Council- Chula Vista) III. Status Check on Proposed Policy Recommendations IV. General Discussion a. Nelly concert: Plan of Action b. Regulations of the VIP area c. Security measures d. Possible Change of Management V. Police Enforcement Results VI. How Can We Support Each Other? We feel that a successful meeting would involve approximately 15 -20 persons, including community residents and youth. We ask that you would consider hosting our group at your facility. If not, we would be happy to identify another place where we could meet in the City of Chula Vista. . "::_",l);i ¡ I . ',~-. , . j!: :.'.L:'li \:<i', i Ii ¡~ ;;':.,; " l' ¡ I;, , r ::!:::,' (~.'.\ .;¡.>.:, , - \: UIO.1 ':i'¡<" 1"\ \outh Boy PêÍrtnersh! p I [t .\LTH & 11\1"':': :-:I'R\IU:' \(;¡"U ()()() ()\T;(JRD S¡'lZFL:'r l,it J..\ \~¡sr.\, (:.\ (}t')i ¡ (,[')··HJ'J·3121 \., '¡;.i- (, I '}--IO')-.).)O-l-I ..:\ Finally, we'd like to share with you that our coalition is available to meet from 2:30 - 3:30 P.M. on any of the following days: November 18,20·22, and 25. Please contact Policy Advocate, James Marcelino at 619-427-0376, to make final confirmation of this meeting. We thank you sincerely for your consideration in this matter, and look forward to fruitful discussion and a long-lasting partnership. Sincerely, Dana Richardson Director Cc: James Marcelino, Chula Vista Coordinating Council Dan Tomsky, Institute for Public Strategies Veronica Serrano, Por La Vida Sheila Salon ius, South Bay Community Services Tanya McCann, Partnerships for the Public's Health :è" 'i. :,lì )"" !i ,\: . j t,~ \ L]"i ¡ \ '-...\-: 1 :; :--1;\ "_", ;',~ I.! .....,. "l.,'i"·.' . '.f.:\ C~ulA ViSTA C~AMbER of COMMERCE 233 Fourth Avenue Chula Vista, CA 91910 Tel: 619-420-6603 Fax: 619-420-1269 E-mail: info@chulavistachamber.org Website: http://www.chulavistachamber.org BOARD OF DIRECTORS PRESidENT T y Compton PRESidENT ElECT Bill Hall VicE PRESidENTS Mike Bryan Kevin Carlson Jerry Siegel Beverly Turner MEMbERS Henry Barros Dan Biggs Chris Boyd Gary Bryant Patty Davis Diane Flint Dr. Libia Gil Henri Harb Charles Moore Jim Pieri Dave Ruch Dave Rossi Todd Stone Bill Tunstall Lourdes Valdez January 21,2003 The Honorable Patty Davis Chula Vista City Council 276 Fourth Avenue Chula Vista, CA. 91910 Re: Honoring the Vehicle License Fee Commitment Dear Councilmember Davis, On behalf of the Chula Vista Chamber of Commerce, I am writing to urge you to support the staff recommendation that the Chula Vista City Council approve the Resolution urging the California Legislature to honor the 1998 commitment to reinstate the Vehicle License Fee (VLF). When the Legislature acted to reduce the Vehicle License Fee (VLF), it was done with the promise that should the time come that the State's General Fund could no longer afford to back:fill cities and counties for the VLF offset, the fee would be restored and our local governments kept whole. Since 1935, cities and counties have received the VLF in lieu oflocally-collected property taxes on vehicles. In our community, the VLF constitutes 17% of the city' discretionary revenues. As you are well aware, the average city spends more than 60% of its general fund money on public safety. The VLF is a critical component of funding these vital services. In 1986, a ballot measure was passed overwhelmingly by California voters, 81.8%, pledging PAST PRESidENT the proceeds of the VLF to fund local government services. The 1998 law that created the Ben Richardson VLF holiday did not change this policy; it simply committed the State General Fund to . financing an offset against the VLF payment obligation of a vehicle owner. The same 1998 EXECUTivE DIRECTOR law provides for the restoration of the VLF ifinsufficient funds are available in the State Usa Cohen General Fund to afford the VLF offset. Irrespective of whether the Governor's estimate of a $35 billion shortfull, or the Legislative Analyst's more conservative estimate proves to be accurate, it appears the State General Fund has reached a very large negative balance. Our Chamber of Commerce, representing 800 businesses in the Chula Vista community, urges you to reject the Governor's proposal to abandon the VLF back:fill without reinstating the VLF in its entirety. The loss of adequate public safety personnel to meet the needs of our residents and business owners is not acceptable. We respectfully request that you support the staff recommendation before you this evening. ~elY, C{isa¿~E~ DR PAUL SNYDER PHD: CURRENT GOV. BLAH DAVIS IS A HOMELESSNESS ADVOCATE? + JUST HOW CAN THAT BE? SINCE MAY 1998 HE AND AG LIAR LOCKYER HAVE BEEN DIRECTLY AND AMPLY NOTIFIED OF CRIMINAL ABUSE AT VHC- BARSTOWN AND THEY DIRECTLY CONTRIBUTED TO THE WllLFULL, IllEGAL, UNLAWFUL HOMELESSNESS OF WEll . MEANING BUT OUT SPOKEN PATIENTS LIKE ME & DON lAKE. _ ~_.. ~. .._._.___ u_._____ .'_____ ._'" .,'__._" CITIZENS FOR A BEITER VETERANS HOME (In memory of Founder RICHARD OLIVER SEWELL. RIP 20ü]) POB 2258 Barstow California 923 ]2-2258) 7 June 2002 CONTRIBUTIONS TO BILL SIMON CAL VETS/CDV A PLATFORM 2002 Topic: NON URBAN CAL VETS/CDV A VETERANS HOMES To Whom It May Concern: In Mly 2002, current Assembly Leader Herb Wesson of Compton in Los Angeles became an 'instant expert' and 'state wide veterans advocate'. He has usurped the will of the people in voting for building bond funds for new 'mirn campus' Veterans Homes of California in undeveloped patches of Lancaster (near Palmdale) and Saticoy (in Vcntura County) in the Proposition 14 Initiative. The wording, and surely the promotion of this initiative. makes the risk of spending such tax payer mornes on any other site ripe for numerous types and styles of law suits from a variety of potential plaintiffs. Let's forget the problems of traffic, air pollution, ground water contamination, and fault lines directly under both San Fernando Valley and LA West for the moment. Much of the criticism of non urban care campuses has corne from inner city advocates such as Mister Wesson due to the poor (and we've documented criminal abuse by the inch or the pound) performance of Veterans Horne of California - Barstow in San Bernardino County. Barstow is not just a typical spot of rural California in the most corrupt county in the state. Infact, Barstow is not much more than a pit stop to and from Los Vegas. Barstow is Barstow. While Victorvalley has blossomed over the post war period Barstow has a stagnant population in a demirnshed economy. And I say this as a local Friend of the Library. a school district worker, and a former member of the Chamber of Commerce. I take no pleasure in enclosing copies from the playbill of San Diego's Point Lorna HS's recent production of [{ol Q(fThe Press. a take of off the 200] Miss Barstow fiasco im'olving misconduct by the local CHP. Review the 2000 dcrisive advertisement of the state cheese board. Review the 1999 episode of NBC's ER concerning the death of Doctor Doug Ross' father. Barstow is Barstow. Much of the wounds to the local image and reputation arc self innicted. For one thing, politicians and local individuals spend time complaining of 'bad press' instead of taking responsibility. (Gee, that sounds like the modus operindi of the state veterans dcpartment and board.) And yes. this local lack of moral courage has combined with CAL VETS/CDV A·s politics, and gross mismanagement and over all lack of ethics to create (literally and officially) the nation's worst veterans home. And yes, this object lesson in how not to run a veterans home has corne with a $ 10M price tag. State monies that the feds would gladly given to C AL VETS/CDV A coffers have been held back in 2000 and 2001. Do not be swayed by the water carrier of the current governor and attorney general. Mister Wesson is only a recent student of California veterans issues and his 'urban' stance is mere a page from the failed play book of Davis and Lockyer. Not only do all non urban areas not deserve to be painted with the same brush as the Barstow fiasco, but surely the over all strategy in an election year is to take a 110n issue (like the non urban settings of Lancaster and Saticoy) to cloud the three and a half years of law suits. failed inspections, employee discontent, patient abuse, citizen harassment and negligent homicides of the corrupt Davis Administration. Barstow is Barstow. Let Lancaster and Saticoy find their own voice and destiny. Do not allow Mister Wesson, who has rarely spoken up on veterans issues in his entire life until May 23. 2002, drag this red herring across the real issues of corruption and mismanagement during an ejection year. Really caring for veterans, JOHN D. COFFEY, JD. cofounder, citizen, voter