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HomeMy WebLinkAboutAgenda Packet 2003/03/25CITY COUNCIL AGENDA March 25, 2003 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CI"IY OF CHUIA VISIA City Council Patty Davis John McCann Jerry R. Rindone Mary Salas Stephen C. Padilla, Mayor City Manager David D. Rowlands, Jr. City Attorney Ann Moore 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 March 25, 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 OATHS OF OFFICE: Kecia Washington - Housing Advisory Commission Richard Arroyo - Growth Management Oversight Commission PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO CARLOS BEJAR, EMERGENCY SERVICES MANAGER, PROCLAIMING APRIL 2003 AS EMERGENCY PREPAREDNESS MONTH PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO CAPTAIN JIM MCDONELL, COMMANDING OFFICER OF THE U.S.S. JOHN C. STENNIS, SUPPORTING MEMBERS OF THE ARMED FORCES ENGAGED 1N OPERATION IRAQI FREEDOM CONSENT CALENDAR (Items 1 through 14) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak"form (available in the lobby.) andsubmit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES of March 18, 2003. Staffrecommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS Letter of resignation from Christopher Lewis, member of the Economic Development Commission. Staffrecommendation: Council accept the resignation and direct the City Clerk to post immediately in accordance with Maddy Act requirements. 5A. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN INCREASE OF THE SEWERAGE CAPACITY CHARGE AND THE MODIFICATION OF THE MASTER FEE SCHEDULE (SECOND READING AND ADOPTION) The City of San Diego, as part of the Metropolitan Wastewater District, provides sewage treatment services to fourteen participating agencies that do not own and operate a sewage treatment facility. The City of Chula Vista, along with the other participating agencies sends all the sewage generated to the City of San Diego's Point Loma Wastewater Treatment Plant for treatment. The City has not adjusted the Sewerage Capacity Charge since 1990, even though the Metropolitan Wastewater District's costs for the provision of sewage capacity and treatment have been increasing ammally. Adoption of these ordinances will facilitate an increase of the fee, utilizing the Construction Cost Index, pending the completion of a comprehensive study to determine the new fee amount. (Director of Engineering) Staff recommendation: Council place the ordinance on second reading for adoption. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR THE INSTALLATION OF UNINTERRUPTIBLE POWER SUPPLY SYSTEMS ON VARIOUS TRAFFIC SIGNALS IN THE CITY OF CHULA VISTA - PHASE II (PROJECT TF293) The City Engineer received sealed bids from three electrical contractors for this project. However, upon further financial analysis of the project and in the best interest of the City, staff recommends that all bids be rejected and that the project be rebid, utilizing a reduced scope of work. (Director of Engineering) Staff recommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY ATTORNEY AND DIRECTOR OF ENGINEERING TO DEVELOP AND EXECUTE AN AGREEMENT FOR TERMINATION OF CONTRACT DUE TO INFEASIBILITY OF CONSTRUCTION FOR THE CORRUGATED METAL PIPE REHABILITATION ALONG FIFTH AVENUE, BETWEEN WESTBY STREET AND THE TELEGRAPH CANYON CHANNEL IN THE CITY OF CHULA VISTA, CA (PROJECT DR-137), WHICH WAS AWARDED TO NATIONAL LINER WEST, A DIVISION OF ZZ LINER, INC. ON NOVEMBER 5, 2002 BY CITY COUNCIL RESOLUTION NO. 2002-424 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DEEMING EMERGENCY WORK TO BE OF URGENT NECESSITY, APPROVING THE EXPENDITURE OF FUNDS FOR THE EMERGENCY STORM DRAIN REPAIR ALONG FIFTH AVENUE, BETWEEN WESTBY STREET AND THE TELEGRAPH CANYON CHANNEL, BY THE DIRECTOR OF ENGINEERING, RATIFYING THE ACTIONS OF THE CITY MANAGER AND DIRECTOR OF ENGINEERING FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH MJC CONSTRUCTION IN THE AMOUNT OF $105,000 (4/5THS VOTE REQURED) Page 2 - Council Agenda 03/25/03 7A. Rehabilitation of the corrugated metal pipe along Fifth Avenue, between Westby Street and Telegraph Canyon Channel was previously approved by Council (Project DR-137). This project provides for the rehabilitation of existing corrugated metal pipe. Upon videotaping the pipe, the contractor determined that the pipe had partially failed and was in imminent danger of further collapse. Therefore, the contractor agreed to discontinue rehabilitation of the pipe and staff solicited three informal bids for emergency replacement of the pipe. The lowest bid received was from MJC Construction. MJC Construction was authorized by the Director of Engineering to proceed with the emergency replacement. Adoption of the resolutions allows the City to terminate the existing contract with National Liner West, deem the work for the emergency pipe replacement to be of urgent necessity, and ratifies emergency actions taken by the City Manager and Director of Engineering to replace the pipe. (Director of Engineering) Staffrecommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINA VISTA DECLARING ITS iNTENTION TO CONSIDER CHANGES AND MODIFICATIONS TO THE SPECIAL TAX RATES WITHIN COMMUNITY FACILITIES DISTRICT NO. 08-M, IMPROVEMENT AREA 1 McMillin Otay Ranch has requested that the City conduct proceedings to consider changes and modifications to Improvement Area No. I of Community Facilities District No. 08-M (Village 6) (CFD 08-M). CFD 08-M was formed in 2002 to fund the perpetual operation and maintenance of slopes, medians, parkways and storm water treatment facilities associated with Village 6. The City has retained the services of MuniFinancial as special tax consultant, and Best, Best and Krieger LLP as legal counsel to provide assistance during the proceedings. Adoption of the resolution initiates the formal proceedings to consider modification to CFD No. 08-M, Improvement Area No. I. (Director of Engineering) Staff recommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OF INTENTION OF CONSIDERATION TO CHANGES AND MODIFICATIONS TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES AUTHORIZED TO BE LEVIED WITHIN IMPROVEMENT AREA B OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS, AND LAND SWAP) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT WITH MCGILL MARTIN SELF, INC., FOR PROVIDING ADDITIONAL PROJECT MANAGEMENT AND SPECIAL TAX CONSULTANT SERVICES FOR THE CHANGE AND MODIFICATION OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE- WOODS, VISTAS, AND LAND SWAP), AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT Page 3 - Council Agenda 03/25/03 8A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FIFTH AMENDMENT TO THE AGREEMENT WITH BEST BEST & KRIEGER LLP, FOR PROVIDING ADDITIONAL LEGAL COUNSEL SERVICES FOR THE CHANGE AND MODIFICATION OF COMMUNITY FACILITIES DISTRICT NO. 06-1 (EASTLAKE- WOODS, VISTAS, AND LAND SWAP), AND AUTHORIZING THE MAYOR TO EXECUTE SAiD AGREEMENT EastLake Company, LLC has submitted a letter to the City of Chula Vista requesting that the City initiate proceedings for Community Facilities District No. 06-1 to consider changes and modifications in the Rate and Method of Apportiorm~ent of special taxes for Improvement Area B of such district resulting from the proposed prepayment of the special tax obligation for certain commemial property within Improvement Area B. Adoption of the resolutions declares the intention to consider approval of changes and modification to the rate and method of apportionment for Improvement Area B; sets the public hearing for this consideration for May 6, 2003; approves the fourth amendment to the agreement with McGill Martin Self, Inc. for providing additional project management and special tax consultant services; approves the fifth amendment to the agreement with Brown Diven Hessell & Brewer, LLP, for providing additional legal counsel services. (Director of Engineering) Staffrecommendation: Council adopt the resolutions. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING 1N ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-1 (EASTLAKE - WOODS, VISTAS AND LAND SWAP), ADOPTiNG AN ANNEXATION MAP SHOWiNG PROPERTY TO BE ANNEXED TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA B THERETO RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS AND LAND SWAP), DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA B THERETO The EastLake Company, LLC has submitted a letter requesting that the City conduct annexation proceedings for a certain assessor's parcel into Community Facilities District No. 06-I (CFD No. 06-1). Adoption of the resolutions initiates proceedings to annex property into CFD No. 06-1. (Director of Engineering) Staff recommendation: Council adopt the resolutions. Page 4 - Council Agenda 03/25/03 9A. 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP FOR SAN MIGUEL RANCH PLANNING AREA "E- 2", CHULA VISTA TRACT NO. 99-04; ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA, THE VARIOUS STREETS AND EASEMENTS, ALL AS GRANTED ON SAID MAP, WITHIN SAID SUBDIVISION; AND APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROViNG THE FiNAL MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN MIGUEL RANCH PLANNING AREA "E-2", CHULA VISTA TRACT NO. 99-04, REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF RESOLUTION NO. 2000-068, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROViNG A GRANT OF EASEMENTS AND MAiNTENANCE AGREEMENT BETWEEN NNP TRIMARK SAN MIGUEL RANCH, LLC AND THE CITY, REGARDING MAINTENANCE OF PRIVATE OPEN SPACE AND FACILITIES, AND AUTHORIZING THE MAYOR TO EXECUTE SAD AGREEMENT On February 29, 2000, the City Council approved a tentative subdivision map for Chula Vista Tract 99-04, San Miguel Ranch. On August 7, 2001, Council approved San Miguel Ranch Phases 1, 2 & 4 "A" Map No. 1. Adoption of the resolutions approves Planning Area "E-2" final map within phase two of San Miguel Ranch by developer, Altamira Development Company, L.L.C. (Director of Engineering) Staffrecommendation: Council adopt the resolutions. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $42,162 FROM THE UNAPPROPRIATED AVAILABLE BALANCE OF THE RESIDENTIAL CONSTRUCTION TAX (RCT) TO REIMBURSE DEVELOPER FOR COSTS INVOLVED WITH STORM DRAIN REPLACEMENT AT 3733 MAiN STREET (4/STHS VOTE REQUIRED) Mr. Ali Amani, owner of the property at the southeast comer of Main Street and Mace Street, has recently completed the construction of a Mobil gas station with a food mart and a car wash at this site. As part of this development, he was required to widen both streets to meet current standards mandated in the City's Circulation Element of the General Plan. Part of the widening requirements included replacing an old corrugated metal storm drain pipe along Main Street with new reinforced concrete pipe. Staff is requesting that Council authorize the reimbursement to Mr. Amani for the cost of this storm drain replacement fi:om the available balance in the Residential Construction Tax fund. (Director of Engineering) Staff recommendation: Council adopt the resolution. Page 5 - Council Agenda 03/25/03 11. 12. 13. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CITY'S FORMAL BIDDING PROCESS AND APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, LINSCOTT, LAW & GREENSPAN, ENGINEERS, (CONSULTANT), AND THE EASTLAKE COMPANY, LLC, (APPLICANT), FOR THE EASTLAKE VILLAGE CENTER EAST PROJECT, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The EastLake Company LLC has submitted an application for a General Plan Amendment and General Development Plan/Sectional Planning Area Plan Amendment for the Village Center East project. The project site was previously addressed in the approved EastLake Village Center North Mitigated Negative Declaration (IS-01-042) and associated traffic impact analysis prepared by Linscott, Law & Greenspan Engineers dated May 2002. The proposed project requires a new traffic analysis that addresses the proposed land use change. (Director of Planning and Building) Staffrecommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 HOUSEHOLD HAZARDOUS WASTE FUND BUDGET AND TRANSFERRING $30,500 FROM THE SUPPLIES AND SERVICES CATEGORY TO THE CAPITAL OUTLAY CATEGORY FOR THE PURPOSE OF PURCHASING A SCALE AND FORKLIFT (4/5THS VOTE REQUIRED) With Resolution No. 2001-285, the City accepted a multi-year $300,000 grant from the California Integrated Waste Management Board to fund household hazardous waste and electronic waste education, collection and disposal programs. The grant was designed to serve Chula Vista, Imperial Beach, National City and Coronado. A portion of the grant funds were intended to offset costs of operating the regional Household Hazardous Waste drop off facility located at the City Public Works Yard on Maxwell Road. In February 2003 the State approved a change in the grant that allows the City to use the grant's remaining funds to purchase a forklift and scale that will assist with additional household hazardous waste collection efforts by controlling future costs. (Special Operations Manager) Staff recommendation: Council adopt the resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING PHASE III CLASSIFICATION AND COMPENSATION SCHEDULE AND AMENDING THE FISCAL YEAR 2003 BUDGET THEREFOR (4/5THS VOTE REQUIRED) Adoption of the resolution amends the budget by approving classifications and compensation adjustments that are being recommended as the result of a formal classification study. (Director of Human Resources) Staff recommendation: Council adopt the resolution. Page 6 ~ Council Agenda 03/25/03 14. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA 'APPROVING THE CITY'S APPLICATION FOR GRANT FUNDS UNDER THE CALIFORNIA READING AND LITERACY IMPROVEMENT AND PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000 FOR CONSTRUCTION OF A NEW LIBRARY AT THE NORTHWEST CORNER OF EAST H STREET AND PASEO RANCHERO (RANCHO DEL REY LIBRARY); MAKING ALL NECESSARY CERTIFICATIONS, INCLUDING CERTIFYING THE LIBRARY PROJECT BUDGET AND COMMITTING LOCAL MATCHING FUNDS AND SUPPLEMENTAL FUNDS; APPROVING THE JOINT COOPERATIVE AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT FOR THE JOINT VENTURE PROJECT; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL DOCUMENTS NECESSARY TO COMPLETE THE GRANT APPLICATION On August 20, 2001 the City Council directed staff to prepare an application for grant funds under the "California Reading and Literacy improvement and Public Library Construction and Renovation Bond Act of 2000" for the construction of the Rancho del Rey Library. Adoption of the resolution approves the application, makes all necessary certifications, approves an agreement with Chula Vista Elementary School District for the joint venture, and authorizes the mayor to execute all documents necessary to complete the grant application. (Deputy City Manager Palmer) 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 Clerkprior to the meeting. 15. CONSIDERATION OF ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) AND DESIGNATION OF SUCH TERRITORY AS IMPROVEMENT AREA C THEREOF On February 18, 2003 the City Council initiated the Community Facilities District No. 97-2 (Preserve Maintenance) (CFD No. 97-2) annexation proceedings by adoption of Resolution Nos. 2003-059 and 2003-060. Adoption of the resolution is the next step in the formal proceedings to annex the territory within Village 11 into CFD No. 97-2 and to designate such territory as Improvement Area C thereto. (Director of Engineering) Staff recommendation: Council conduct the public heating and adopt the following resolution: Page 7 ~ Council Agenda 03/25/03 16. 17. RESOLUTION OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), MAKING CERTAIN DETERMINATIONS AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF CERTAIN TERRITORY PROPOSED TO BE ANNEXED TO SUCH COMMUNITY FACILITIES DISTRICT (PRESERVE MAINTENANCE) CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT 09-M (VILLAGE 11 - BROOKFIELD SHEA OTAY) On February 18, 2003 the City Council initiated the Community Facilities District 09-M (CFD 09-M) proceedings by adoption of Resolution Nos. 2002-056 through 2002-058. Adoption of the resolution is the next step in the formal proceedings to establish CFD 09-M. Special taxes levied in this district will fund the perpetual operation and maintenance of slopes, medians and parkways and storm water treatment facilities associated with Village 11- Brookfield Shea Otay. (Director of Engineering) Staff recommendation: Council conduct the public hearing and adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT (CFD) NO. 09-M (VILLAGE 11 - BROOKFIELD SHEA OTAY) AND AUTHORIZING SUBMITTAL OF LEVY OF SPECIAL TAXES WITHIN THE CFD TO THE QUALIFIED ELECTORS THEREOF CONSIDERATION OF APPROVAL OF PRECISE PLAN PCM-02-05, TO ALLOW FOR THE REDEVELOPMENT OF AN EXISTING SHOPPING CENTER LOCATED AT THE iNTERSECTION OF FOURTH AVENUE AND C STREET IN A CENTRAL COMMERCIAL, DESIGN (C-C-D) ZONING DISTRICT (APPLICANT: CHARLES MILLER, M.D., LLC) The project site has an irregular shape and is situated in the central commercial zoning district. It currently contains various commercial and retail buildings and uses. The proposed project will eliminate some the existing buildings and uses, and introduce new buildings and uses, while improving the site's appearance. The Precise Plan will allow flexibility of the development standards that would enable the applicant to develop the lot. The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has prepared a Mitigated Negative Declaration for the Precise Plan project. The Resource Conservation Commission recommended adoption of the Mitigated Negative Declaration on December 2, 2002. (Director of Planning and Building) Staff recommendation: Council conduct the public hearing and adopt the following resolution: Page 8 - Council Agenda 03/25/03 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A MITIGATED NEGATIVE DECLARATION (IS-02-05) AND APPROVING PRECISE PLAN PCM-02-05 TO ALLOW FOR THE REDEVELOPMENT OF AN EXISTING SHOPPING CENTER LOCATED AT THE INTERSECTION OF FOURTH AVENUE AND C STREET IN A CENTRAL COMMERCIAL DESIGN (C-C-D) ZONING DISTRICT ACTION ITEMS The items listed in this section of the agenda will be considered individually by the Council, and are expected to elicit discussion and deliberation. 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. 18. REPORT ON REQUEST FOR AN ALL-WAY STOP AT THE INTERSECTION OF NACION AVENUE AND EAST MILLAN STREET/EAST MILLAN COURT City staff received a letter from a Chula Vista resident requesting that an all-way stop and a painted crosswalk be installed at the intersection of Nacion Avenue and East Millan Street/East Millan Court to control the speed of motorists traveling through the subject intersection on Nacion Avenue, and to improve intersection safety for pedestrians crossing Nacion Avenue. Staff evaluated the intersection under the latest Council Policy and recommended denial of all-way stop control. The Safety Commission did not concur with the recommendation and under Council Policy No. 110-09, if staff and the Safety Commission do not concur, the matter shall go to City Council for final decision. Staff recommendation: Council accept the report and deny the installation of all-way stop control at this intersection. 19. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2003 POLICE DEPARTMENT BUDGET BY ADDING SIX COMMUNICATION OPERATOR II POSITIONS AND ONE LEAD COMMUNICATION OPERATOR; RECLASSIFYING THREE COMMUNICATION OPERATOR I POSITIONS TO COMMUNICATION OPERATOR II; CREATING A NEW COMMUNICATION OPERATOR TRAINEE POSITION; AND AUTHORIZING ADVANCE HIRING FOR UP TO FIVE COMMUNICATION OPERATOR II POSITIONS (4/5THS VOTE REQUIRED) Staff recently completed an analysis of the staffing needs for the Police Department's Communication Center. At present, staffing for the center is 23 operators, the same level as in Fiscal Year 1990/1991, when the City's population was 137,885 and the department had 151 sworn staff. Today, the City has grown to nearly 200,000 with 228 sworn staff. (Chief of Police, Assistant City Manager Fruchter) Staffrecommendation: Council adopt the resolution. Page 9 - Council Agenda 03/25/03 20. CONSIDERATION OF SELECTION OF AN ENERGY CONSULTING TEAM TO ANALYZE THE FINANCIAL~ LEGAL AND TECHNICAL FEASIBILITY OF VARIOUS POSSIBLE MUNICIPAL ENERGY UTILITY BUSINESSES AND ALTERNATIVES THERETO In May 2001, the City adopted an Energy Strategy in response to an unstable energy market. In an effort to identify energy opportunities, staff issued a request for proposals for consultant services. The adoption of the energy policy and the timing of the expiration of the electricity and natural gas franchise agreements with San Diego Gas and Electric provide the City with a unique opportunity to evaluate and make determinations on the most cost-effective means of providing reliable energy to our ratepayers and controlling at least some of the revenues generated by the delivery of energy to local residents and businesses. (Assistant City Manager) Staffrecommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SELECTION OF THE ENERGY CONSULTANT TEAM OF DUNCAN, WEINBERG, GENZER & PEMBROKE, MCCARTHY & BERLIN AND NAVIGANT CONSULTING INC. TO ANALYZE THE FINANCIAL, LEGAL AND TECHNICAL FEASIBILITY OF VARIOUS POSSIBLE MUNICIPAL ENERGY UTILITY BUSINESSES AND ALTERNATIVES THERETO; AUTHORIZING AND DIRECTING STAFF TO NEGOTIATE A CONSULTANT SERVICES CONTRACT WITH DUNCAN/NAVIGANT CONSISTENT WITH THE TERMS AND CONDITIONS OUTLINED HEREIN; AND DIRECTING STAFF TO RETURN WITH A FINAL PROPOSED AGREEMENT AND APPROPRIATION OF FUNDS FOR COUNCIL CONSIDERATION 21. CONSIDERATION OF ADOPTION OF A RESOLUTION REQUESTING THE SAN DIEGO ASSOCIATION OF GOVERNMENTS TO MODIFY THE 2030 REGIONAL TRANSPORTATION PLAN (CONTINUED FROM THE MEETING OF MARCH 18, 2003) For the past year, the San Diego Association of Governments (SANDAG) has been working on the 2030 Regional Transportation Plan. At the meeting of March 18, 2003, Council discussed the proposed resolution and requested that modifications be made to the resolution for consideration. (Director of Planning and Building, Director of Engineering) Staff recommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REQUESTiNG THE SAN DIEGO ASSOCIATION OF GOVERNMENTS TO MODIFY THE 2030 REGIONAL TRANSPORTATION PLAN ITEMS PULLED FROM THE CONSENT CALENDAR Page 10 - Council Agenda 03/25/03 OTHER BUSINESS 22. CITY MANAGER'S REPORTS 23. MAYOR'S REPORTS A. Accepting the verbal resignation of Port Commissioner William Hall and requesting the City Clerk to post a notice of vacancy pursuant to the Maddy Act. B. Discussion regarding University of California Task Force C. Discussion regarding Chula Vista's Economic Development Commission 24. COUNCIL COMMENTS 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 5495Z 7). 25. CONFERENCE WITH LEGAL COUNSEL REGARDiNG EXISTiNG LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 A. City of Chula Vista vs. Barnhart Contracting; San Diego Superior Court Case No. GIS 003859 B. Crim, Michael vs. City of Chula Vista; U. S. District Court Case No. 00CV 0465- IEG (LAB) 26. CONFERENCE WITH LEGAL COUNSEL REGARDiNG SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) · One case ADJOURNMENT to an Adjourned Regular Meeting on March 28, 2003 at 4:00 p.m., thence to an Adjourned Regular Meeting on March 29, 2003 at 8:30 a.m., and thence to the Regular Meeting of April 1, 2003, at 4:00 p.m. in the Council Chambers. Page 11 - Council Agenda 03/25/03 ~=RS913 901-874-2673 TO:619 476 5379 P.Wl't:Jt:Jl RECEIVED 21 March 2003 To: The Honorable Mayor and Distinprimed Members of the City Council o~ulJAR 24 P 5 :20 Vista: CIT\' 0F CHUlA Vb; " I, William A. Ball, hereby offer my resignation as Chula Vista's rcpresenlnti~ ileERK'S aFFICF Unified Port District of San Diego, Beard of Fort Commissioners due to my iJ:uIbiJity to tempOrarily MfiI I the duties of that office during the period of my active duty service to the United Slntes Navy, in support of Operation Noble Eagle and Operation Endurin¡ Freedom. I deeply re¡ret the Deçe,sity for this action and will seek reappointment following my release from active duty. It bas been my e¡c.treme pleasure 10 serve the City of Chula Vista, the Unified Port of San Diego, and most importantly, the people of our region as your representative. 3/24/03 Copies distributed to: Mayor & City Council City Manager City Attorney City Clerk ---.,; ¡~:,~~-~'" ,~--:p:;--~ r~~ I ,:) ,,'.-J ".::> .... .j ,-,=, 'I' "~I ¡ j r----=---- --------: ¡. j:' " ,I 'f .,', 1~li ;~ \;\ AR 1 3 2003 10 J Ui M I , --,,-~j COLi~·tCjL O;:fiCES CHdi,C\ \-!S fiJ., '~A March 11, 2003 The Honorable Mayor and City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Dear Honorable Mayor and City Council, This letter is to notify you of my resignation from the Economic Development Commission effective immediately. I want to thank you for the opportunity to serve the city in this capacity. If- COMMERCIAL AND RESIDENTIAL PROPERTY SALES AND LEASING COUNCIL AGENDA STATEMENT Item ~.~ Meeting Date 3/18/03 ITEM TITLE: Public hearing to consider an increase of the Sewerage Capa~harge and the modification of the Master Fee Schedule. ~O~\\''~ ' Ordinance approving an. ei~C,~e~)of the'' ~x)' Sewerage Capacity Charge and the modification~d~k%~¥~ster Fee Schedule, Urgency Ordinance ap~¥~ving an increase of the Sewerage Capacity Charge and the modification of the Master Fee Schedule. SUBMITTED BY: REVIEWED BY: Director of Engineering/~/ City Manager~o~ Co' (4/5ths Vote: Yes X No ] The City of San Diego, as part of the Metropolitan Wastewater District ("Metro"), provides sewage treatment services to fourteen participating agencies that do not own and operate a sewage treatment facility. The City of Chula Vista, along with the other participating agencies, sends all the sewage generated to the City of San Diego's Point Loma Wastewater Treatment Plant for treatment. In 1985, the City of Chula Vista established the Sewerage Capacity Charge to finance the pumhase of capacity in the Metro sewer system, construct improvements to enhance capacity in the City's sewer system and to pay for the treatment of the sewage. Since 1990, the City has not adjusted the Sewerage Capacity Charge, even though Metro's costs for the provision of sewage capacity and treatment have been increasing annually. In addition, no adjustments had been done to this charge to keep up with inflation, as was originally intended at the inception of the fee. The approval of these Ordinances will facilitate an increase of the fee utilizing the Construction Cost Index (which takes into consideration the effects of inflation), pending the completion of a comprehensive study currently underway to determine the new fee amount. RECOMMENDATION: That City Council: 1. Conduct the Public Heating. 2. Approve the Ordinance implementing an increase of the Sewerage Capacity Charge and modifying the Master Fee Schedule (first reading). 3. Approve the Urgency Ordinance implementing an increase of the Sewerage Capacity Charge and modifying the Master Fee Schedule. BOARDS / COMMISSIONS RECOMMENDATION: Not applicable. Page 2, Item -~ Meeting Date 3/18/03 DISCUSSION: Background The Sewerage Capacity Charge is paid by the owner or person applying for a permit to develop or modify the use of any residential, commercial, industrial or other property, which is projected by the City Engineer to increase the volume of flow in the City's sewer system by at least one- half of one Equivalent Dwelling Unit of flow. Prior to 1985, the City of Chula Vista was one of the very few agencies, which did not impose a charge against new construction for sewage treatment and trunk sewer capacity. Capacity in such facilities was characteristically provided at public expense and the City typically allowed a wide degree of latitude for community development. In March of 1985, the Engineering Department prepared a Study titled "Sewerage Facility Participation Fee Study-Modified March 1985" (Attachment 1). The purpose of this study was to investigate the feasibility of establishing a capacity fee that would be applicable to all new sewer connections to the City's sewer collection system. This study recommended among other things, the establishment of a Sewerage Participation fee that would be adjusted on an annual basis to reflect changes in construction costs (suggested basis - Engineering News Record Construction Index most applicable to July 1 of each year). Subsequently, on April 2, 1985, Council approved Ordinance No. 2107, which established the Sewerage Facility Participation Fee, now referred to as the Sewerage Capacity Charge, to enable the citizenry to be repaid for their initial investment and to facilitate the development of Chula Vista. At that time the fee was set to be $300 per Equivalent Dwelling Unit (EDU). Two years later, in anticipation of the significant costs of upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment facility, for which the City of Chula Vista, as well as other participating agencies was liable, Council on May 5, 1987, approved Resolution No. 13004 and Ordinance No. 2002 increasing the Sewerage Participation Fee from $300 to $600. In 1989, following the adoption of the Clean Water Act, the Environmental Protection Agency (EPA) directed the City of San Diego to upgrade the Point Loma Treatment Plant to a Secondary Treatment facility. Since Federal funds were not anticipated to be available for the required upgrades at that time, and the cost of bringing the Plant into compliance appeared to be far greater than what was originally anticipated in 1987, Council, on October 17, 1989 approved Resolution Nos. 15352 and 15352A. These Resolutions increased the Sewerage Participating Fee to $2,000, pending the completion of various studies being conducted at that time to determine the full impacts/costs of upgrading the treatment plant. One year later, on October 9, 1990, Council, by Resolution 15894, further increased the Sewer Participation Fee to $2,220 to enable the City meet its obligation to the Metro System for the upgrade of the treatment plant. The Resolution further recommended that the Sewerage Capacity Charge be increased annually by 11% for a period of 8 to 10 years thereafter. This recommendation was made in anticipation of furore expenditures that might have been incurred by the Metro system to comply with EPA regulations. Page 3, Item -~ Meeting Date 3/18/03 Since then, although the original study which established the fee and subsequent Council actions had recommended that the City update the fee annually to reflect the increase in capacity, improvements, ma'mtenance and operation costs, this was not done due to a variety of reasons. Need for the Update of the Sewerage Capacity Charge As stated in Section 3.14.010 of the City of Chula Vista Municipal Code, all revenue derived fi.om the Sewerage Capacity Charge is deposited in the Trunk Sewer Capital Reserve Fund. The Trunk Sewer Capital Reserve Fund is used solely for the following purposes, unless the City Council vote to appropriate such funds for other purposes; provided such other purposes are for the planning, design, or construction of sewage collection or treatment or water reclamation purposes or incidental thereto: 1. Paying all or any part of the cost and expense to enlarge sewer facilities of the City so as to enhance efficiency of utilization and/or adequacy of capacity in order to effectively serve the needs of the City; 2. Paying all or any part of the cost and expense to plan and/or evaluate any future proposals for area-wide sewage treatment and/or water reclamation systems or facilities. Therefore, revenue derived fi.om the Sewerage Capacity Charge is primarily used to provide capacity both for conveyance and treatment. The City of Chula Vista currently has 19.843 million gallons per day (MGD) of sewage treatment capacity rights within the Metro system; however, the City currently generates approximately 16.5 MGD of sewage. In the last few years, the City has experienced a significant amount of growth, and as the flow generation continues to increase, it is imperative that the City be proactive in planning for the acquisition of additional capacity fights within the Metro system to sustain the City to buildout conditions. More specifically, this increase of the Sewer Participation Fee is needed for the following reasons: 1. Acquisition of additional Capacity Rights The existing capacity in the Metro system was originally acquired with funds generated by the Sewerage Capacity Charge that existing residents paid when they made their connection to the City's sewer system. If reserve capacity in the Metro sewer system had not been purchased, new residents would either not be permitted to connect, or would have been required to pay for the acquisition of additional treatment capacity. Instead, new residents are permitted to connect to the system and make use of the reserve capacity held by the City. Recent projections of the City's future sewage generation and treatment needs indicate that it will soon be necessary for the City to acquire additional capacity rights in the Metro Sewage System. Page 4, Item ~ Meeting Date 3/18/03 2. Annual increase in Metropolitan Sewerage System Costs The City of Chula Vista is responsible for the operation and maintenance of the local collection system. Wastewater generated from the City is discharged into the Metro system and conveyed to the City of San Diego's Point Loma Wastewater Treatment Plant for handling, in accordance with the terms of the Metro Agreement, the City of Chula Vista pays for the treatment of the wastewater based on the quantity and quality of the generated sewage. Comparing the City of Chula Vista's Metro expenditure during the Fiscal Year when the last Sewerage Capacity Charge increase occurred to the current Fiscal Year, we see that the wastewater treatment costs had increased significantly. The Metro costs include costs for operations and maintenance, capital improvement project expenditure and related debt financing. The capital costs ultimately impact the Sewer Capacity Fee. In Fiscal Year 1990, the City's overall Metro expenditure for sewage treatment for approximately 13 MGD was $4,474,545. More recently, for Fiscal Year 2002, the City's total Metro expenditure for the treatment of 15.3 MGD of sewage was $11,600,242 (See Attachment No. 2). The following table shows these expenditures. FISCAL YEAR SEWAGE (MGD) 1990 13 2002 15.3 INCREMENT FROM 2.3 FY 1990 TO FY 2002 EXPENDITURE $ 4,474,545 $11,60O,242 $ 7,125,697 3. Increase in the Need for Improvements Created by the Demand for More Capacity in the Sewer System The surge of development and the proportionate increase in the demand for wastewater services during recent years has necessitated that the City invest in various improvements to the existing infrastructure. The cost of some of these improvements varied significantly from what was originally estimated. For example, the Salt Creek Gravity Sewer Interceptor which the City partially funded utilizing the Trunk Sewer Capital Reserve Funds ultimately cost approximately $12 Million Dollars more than was originally budgeted. City Council, on August 13, 2002 passed Resolution 2002-297 appropriating funds from the Tnmk Sewer Capital Reserve Fund to finance the Salt Creek Gravity Sewer Interceptor project. In addition, the Telegraph Canyon Trunk Sewer was also improved utilizing approximately $2.2 Million Dollars of Trunk Sewer Funds, which was not originally contemplated. The City recently retained PBS&J to update the City's Wastewater Master Plan. The primary goal of the Wastewater Master Plan Update is to evaluate the adequacy of the existing wastewater collection system to sustain the long-term growth of the City. The plan will assist the City in budgeting for Capital Improvement Projects (CIP), allocating resources for the acquisition of additional sewage capacity and determining the short and Page 5, Item Meeting Date 3/18/03 long-term sewer capacity needs of the City. It is projected that the Master Plan will be completed by Fall 2003. 4. Inflation PBS&J has also indicated that by not updating the Sewerage Capacity Charge in the past twelve years, the fee has not kept pace with inflation, therefore its ability to fund the construction of capital projects or the acquisition of additional sewerage capacity in the Metro system as it was originally intended, has been significantly reduced. This inflationary trend was considered back in 1984 when the Sewerage Capacity Charge was created, and to avoid it, an annual fee adjustme~nt was recommended. The 1984 Study, suggested the Engineering News Record Construction Cost Index (ENR CCI) as the basis of the fee-adjustment mecharfism, and recommended that the ENR CCI be applicable July of each year. The ENR Construction Cost Index is a monthly composite figure of the cost of various construction materials and labor costs as measured by Engineering News-Record Magazine. As such, :it is a more accurate predictor of the effects of inflation on a typical construction project than the CPI or other measure of inflation. Fee Determination In addition to the Wastewater Master Plan, PBS&J, under a separate contract, is preparing a Wastewater Rate Study/Financial Plan/Revenue Program. It is anticipated that this study will be completed in the next few months. Nevertheless, based on the work already completed by PBS&J in the preparation of the Rate Study, and PBS&J's acquired experience as current financial advisers to the Metro Technical Advisory Committee (Metro TAC), the consultant recommends that the City immediately implement an increase of the Sewerage Capacity Charge utilizing the Construction Cost Index, pending the completion of both the Rate Study and the Wastewater Master Plan. This recommendation (Attachment 4) is consistent with the recommendations made in the original study (1984, Sewerage Facility Participation Fee Study-Modified March 1985) that formed the basis of the fee. The following table shows the methodology utilized in determining the Sewerage Capacity Charge based on the BNR Index: ENR Construction Cost Index for July 1990 ENR Construction Cost Index for July 2002 Increase in Index (6605 / 4734) Revised Fee ($2,220 x 1.3952) RecOmmended Fee Net Increase ($) 4734 6605 1.3952 $3,097 $780 See Attachment 3 for supporting information regarding the ENR Construction Cost Indexes. Page 6, Item -~ Meeting Date 3/18/03 Comparison of City of Chula Vista's Sewerage Capacity Charge with Other Local Agencies Most agencies in the area between Poway and the International Border collect some form of fee, which is used to deft:ay some portion of the cost of existing sewerage facilities. Those fees are sometimes part of a larger fee covering specific work involved in making a physical c6nnection to the sewer. Consequently, it is difficult to do a proper comparison of the proposed fee increase with those of other agencies. The following table is a compilation of the fees charged by various agencies based on the lVastewater User Charge Survey Report FY 2001-02, completed by the State Water Resources Control Board on May 2002. 1 * Otay M. W.D. $0 2 * City of Imperial Beach $700 3 * Lemon Grove County Water District $1,000 4 City of Vista $1,922 5 * Alpine Sanitation District $2,000 5 * Lakeside Sanitation District $2,000 5 Pine Valley County Sanitation District $2,000 5 * Spring Valley Sanitation District $2,000 5 Winter Gardens Sewer Maintenance District $2,000 6 * City of Del Mar $2,004 7 * City of La Mesa $2,400 8 * City of National City $2,420 9 * City of San Diego $2,500 10 * City of Coronado $2,559 11 San Marcos (Vallecitos Water District) $2,650 12 City of Encinitas $2,680 13 Buena Sanitation District $3,000 13 * City of Chula Vista- (Proposed Fee) $3i000 13 * City of Poway $3,000 14 Cardiff Sanitation District $3,417 15 * CityofE1Cajon $3,472 16 City of Oceanside $3,793 17 Leucadia County Water District $3,950 18 Julian County Sanitation District $4,000 19 Fallbrook Public Utility District $4,264 20 City of Escondido $4,403 Page 7, Item .~ Meeting Date 3/18/03 21 22 23 24 Agency Charge per EDU City of Solana Beach $4,500 Padre Dam M. W.D. $5,470 Rainbow M. W.D. $6,656 Rancho Santa Fe Community Service. District. $7,800 25 Ramona Metropolitan Water District $6,125 / $9,778 * Participating Agency in the Metro System Urgency Ordinance The Urgency Ordinance will enable the City to collect the fee during the 60-day waiting period for the regular Ordinance to become effective. This Urgency Ordinance is only valid for 30 days therefore, it will be necessary to notice and hold further heatings in order to extend the Urgency Ordinance in 30-day increments until the permanent Ordinance becomes effective. Staff recommends that the increase to the Sewerage Capacity Charge go into effect immediately by adopting the Urgency Ordinance. The urgent execution of the fee is needed in order to require all developments to pay their fair share of the cost off purchasing additional sewage treatment capacity; constructing improvements to enhance the capacity of the City's sewer system and all other related costs or impacts to the collection system caused by their development. Furthermore, immediate implementation of this fee is necessary due to the current and immediate threat to public safety, which will result, should there be a shortfall in fimds required to pay for the required improvements to the wastewater collection system and to purchase additional sewage treatment capacity. The prospect of a deficit, inadequate sewage treatment capacity necessary for the continuation of development within the City, and concerns about an increased charge to remaining property owners, constitutes a current immediate threat to the public health, welfare and safety justifying the immediate increase of this fee. Environmental Impact The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(93) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. FISCAL IMPACT: It is estimated that over the next eight months that this fee will be in effect prior to the anticipated adoption of the Wastewater Master Plan, it will result in additional revenues of $1,560,000 (assuming that 2,000 permits are approved over this period). If this Page 8, Item ~ Meeting Date 3/18/03 Ordinance is not implemented, this revenue will be lost; thereby necessitating additional increases at the conclusion of the study beyond what the final recommendation would have been. The Trunk Sewer capital Reserve Fund currently has an unappropriated balance of approximately $15.1 Million Dollars. Attachment 1: Attachment 2: Attachment 3: Attachment 4: Sewerage Facility Participation Fee Study-Modified March 1985, September 1984, City of Chula Vista Engineering Department. "Table 1, City of Chula Vista Cost Allocation FY 1990-91" from the 1991 City of Chula Vista Wastewater Rate Plan and Revenue Program; and the FY 2002 fourth quarter invoice for the Metropolitan Sewerage System service. Construction Cost Index History, Engineering News-Record (ENR) PBS&J's letter recommending an interim increase to the Sewerage Capacity Charge J:~Engineer~AGENDA~Sewer Capacity Increase Agenda Statement.sh.doc Last printed 3/11/2003 1:00 PM ATTACHMENT 1 SEtJERAGE FACILII~f PARTICIPATION FEE STUDY SEPTE]eBER 1984 (140DIFIED K~,RCH 1985) ENGIgEE~)~G DEPART~EI~T Prepared By: ff1111~,~. Harehmarr~'~:~- RevJe~ed and Approved B,: ~,~~~ate: /~'--~-~ ~d~ftcatton~ ~pmved: ~///~3 I. PURPOSE ]t is the purpose of this report to summarize an tnvesttgatlon Into the feasibility of developing a swerage factltty participation (capacity) fee applicable to all ne~ se~er connections, and to make recommendations concerning the magnitude and character of the fee to be charged. II. RECOIq~NDATION It is ~commended that: The Ctty create a Sewerage'F~ctllty Parttc~,,patton Fee to be chargeable at time of pemit issuance against all new connections to sewer and/or all modifications to extsttng connections and/or all land use changes where the volume of sewage generated ts anticipated to increase by ene-half of one Equivalent O~elltng Untt [£DU] or more, That the fee be based on a charge of $300 per £quivalent I~e111ng Unit for residential land uses and $300 per each 265 gallons per day of setrage flew pro:Jncted to be generated' by land uses other than residential. Mlntmum charge tn'a~y instance.is p~oposed to be $150. That one-half of tote1 sewerage factllty participation fees collected be placed into the Se~er Service Fund and used for payment toward the C~ty's annual getrepolttan Sewerage System capacity charge. The remaining one-half of such fees collected shall be placed into a Trunk Se~er Capital Reserve Fund to pay for future expansion, improvements and rehabilitation of the City's trenk sewer system. E. That Council dtrect that the necessary o~dinance 6e prepared to authorize collnctton of thts fee. III. DEFINITIONS Following are definitions of some of the terms us'ed herein: A. £qutvalent Dwelling Unit (EDU) -Untt of measure' representing a dwelltng unit or other structure.generating sewage In a volume stmtlar to that generated by a "typical stngle fwfly d~ellfng unit wtthin the City. Sewage generation by · "typical" unit ts recognized to be 265 gallons per day, B. Hetre System (~et~o) - San Diego Hetropolttan Sewerage System including col]nctton trunk se~ers, pumping stations, treatment plant and ocean outfall. C. HGD - Million gallons per day. -1- IV. A. ENR Construction Cost Index - A. running tabulation of relative nationwide construction industry costs published monthly by the Engineering News Record, a nationally distributed jou.rnal of construction trends and activities.. DISCUSSION Background In 1961, the City Council co,mitred the City to purchase 26.2 I4GD in Metro system capacity. This commitment was based on a study of the City's projected sewerage needs conducted by Engineering-Science, Inc. in 1959. The total capacity rese~ation (26.2 MGD) was nearly ten times the actual total City flow (2.7 MGO) at that time. Within the first few months after signing the Metro agreement the City transferred 4.1 MGD in capacity rights to Montgomery Sanitation District (4.0 MG)) and National City (O. 1MGD) to reduce its total holding of 22.1 MGD. That figure prevailed for many years until Council agreed in 1979, at the:recommendation of the City Engineer, tu consider sal~ of up to 5 .MC-D and thereby achieve a more realistic Metro reserve. Since 1979 sales of 3.9 MGD have been consummated and sale of an additional 1.O ),'~D to Spring Valley Sanitation District is currently in progress. When this latest sale is completed, the City will have a total remaining capacity reservation of 17.2 MGD, a current flow of approximately 9.0 MGD and an unused reserve of about 8.2 MGD. Since Joining Metro, the City has made annual payments to San-Diego in the amount of $12,098 for each MGD reserved. The initial annual capacity payment (for 26.1 MGD) was about $317,000. The current (18.2 MGD) annual capacity payment is about $220,000. Revenue for annual capacity payments is generated through sewer service charges. That system of charges also funds the ~Citg's proportionate share of Metro .System maintenance and operation(M~O) costs which are based on actual current sewage flow generated within the City. Metro capacity charges to the City, conversely, are based on the total Metro capacity reserved by the City and are constant for any given capacity reservation. The sum of these two charges is the total amount paid in a given year by Chula Vista to San Diego. Use of the sewer service charge to pay for both utilized capacity and reserve capacity rights in essence imposes a requirement that existing City residents subsidize the cost of reserve capacity for future City growth. Creation of a Sewerage Facility Participation Fee applicable to all new sewer connections is proposed as a means of recuperatin~j much of that subsidized investment at the expense of those who will benefit mest from the capacity thus reserved. Additionally, it is proposed that such fee be utilized in part to create a fund to be pay for work upon the City's trunk sewer facilities to assure continuity of use, efficiency of Utilization and/or adequacy of capacity. The establishment of a Sewerage Facility Participation Fee will allow "neW' residents to be charged for the benefit of having available the necessary Metro System and a trunk sewer system to serve general City J/. needs. If reserve Metre capacity had not been purchased~ new residents would either not be permitted to'bu$1d, or they would be requtred to pay for acquisition of additional treatment capacity. Instead, ne~ residents are pemltted to make use of the reserv~ capacity held by the City. That avatlabtl;ty ts a distinct*asset tn convenience, tn cost and tn tt~e saved durdng the development process. It ts, therefore, considered appropriate that new residents benefitting from that availability should bear its cost. U. Other Area Agencies' Charges Mest agencies tn the area between Poway and the International Border collect some rom of fee intended to defray some portion of the cost of extsttng sewerage faciltUes. Those fees are seeettmes part .of a larger fee covering specific work tnvolved tn making a physical connection to sewer. Consequently, tt ts extremely difficult to con, are the proposed City fee ~lth those of other agencies. The City of San 01ego staff recently compiled a 11st of what ~ay be considered capacity' charges by vartous County agencies. The following has been excerpted free that Hay 1984 ltst: SINGLE FAIqILY DOI~STIC CAPACITY CHARGES BY VARIOUS COUIJTY AGENCIES COM~#TTY OkqE-TI~IE CAPACITY CHARGE Chula Vi sta (300 proposed) Coronado 850 Del Mar 200 E1 Ca, on 195 Escondtdo 2,500 Fall breo~ 2,700 Imper~ al Beach La Mesa 600 Le ucadt a 1,500 #attonal City 300 Oceanstde 1,000 Olay M.~I.D. 2,500 Padre Oam M.14.O. 185 1,500 Rmeea 1,000 San Diego ' 774 San Otego County San~taUon Oistrtcts: Alpine 1,000 Buena 800 Cardtff 1,000 Fairbanks Ranch -- Julian 1,500 Lakeside 1,000 Lemon Grove 1,000 Hontgomery 1,000 Pine Valley 1,000 Rancho Santa Fe 1,000 -3- COI4MUNITY ONE-TIME CAPACITY CXARGE Shado~rtdge -- Solana Beach 1,O00 Sprtng Valley 1,000 ~htspertng Palms 1,500 Wintergardens 1,000 San Marcus 2,400 Valley Center 2,955 Vista 1,650 C. Pertinent Legislation Legislation (S.B. 1005, effective 1-1-82) requires that certain fees including those for sewer connections be limited so as not to exceed the estimated amount reasonably required to provide the service in question unless the amount charged in excess of such estimated amount is submitted to and approved by a popular vote of 2/3 of those electors voting on the issue. The btll requires that a public meeting at which oral or written presentations can be made be held prior to levying a new fee or service charge, and that the action be taken by ordinance or resolution. Notice of the time and place of the meeting, including a general explanation of the matter to be considered is to be mailed at least 14 days prior to the meeting to any interested party who files a written request with the local agency for mailed notice on newor increased fees or service charges. (See Sections 54991 and 54992 of Chapter 13, division 2, Title 5 of the California Government Code.) Since the fee recommended herein is an amount reasonably required to provide the service in question, it must be concluded that a simple public meeting will meet Government Code requirements. D. Use of Funds It is impractical to reinfaurse on an Individual basis those residents who have to date purchased the available Metro reserve capacity held by the City. However', all residents could benefit through a reduction and/or stabilization of sewer service charges.- This benefit could be accomplished through having a portion (suggest one-half) of the Sewerage Facility Participation Fee be .applied toward pa3mmnt of the City's annual capacity payment in the Metro System. Dependent upoq inflationary trends impacting Metro M&O costs such an application of Participation Fees would either reduce, stabilize or at least minimize future increases in ~hula Vista's sewer service charge by reducing the balance of the City's annual capacity payment for its Metre System participation. Any of the named results would broadly benefit the residents of the City and in some measure "reimburse" for the previous expenditures for reserve capacity. Another suggested use of a portion (suggest one-half) of the fee is toward payment for the work of repairing, replacing or enlarging .trunk sewer facilities of the City. To this end, the creation of a Trunk Sewer Capital' ReserVe Fund is proposed for the express purpose of paying for the public participation porLion of such work. -4- Preliminary A]ternatfves Considered Engineering staff has examined the various City costs associated with making sewer service available to new developments. Of particular Interest were those whtch might logically and equitably be used'as a basis for the Sewerage Facility Participation Fee. ~ong the many agencies which now impose a capactty fee, most created their fee prior to Proposition 13, and, of those, many were apparentiy detemtned on a somewhat arbitrary basis. Such procedure would now.likely be held unlowful. Consequently, Engtneer4ng staff has tried to ~solate costs and create a system of fees based on fact so as to minimize any opportunity for legal challenge. Among the sewer-related expenses Investigated for viability were: 1. Cost of reserve Metro capacity. 2. Total Metro costs Including both capactty and 14&O expense. 3. Total c~st of existing City sewer system. Total cost of existing City trunk sewers. 5. Cost of 'extra" capacity provided tn City trunk sewers. 6. Cost of City participation t'n trunk sewer modifications. All alternatives except ~tems 1 and 6 were considered etther Inappropriate or were already the basis of a reimbursement charge. As a consequence of such preliminary Investigation and elimination process, the study was concentrated on detemining a fee which would be representative of the costs to provide adequacy of capacity in both the Metre System and the local trunk sewer system. Alternative Methods of Determining the Cost of Metrb Reserve Capacity In order to detemine the "cost" of Metre reserve capacity, tt ts first necessary to select an effective date for the computation. This comes about because the City makes annual payments .towards Metre capacity and so the camulative dtrect cost increases each year. For purposes of thts study, costs a~e considered as fixed as of early 1984. Approximately twenty-one annual capacity payments have been made as of February 1, 1984. Whtle the trial amount paid and the total capacity reserved have changed over the years, the annual payment per mtllion gallons per day has remained constant ($12,098 per year). It ts this annual unit payment which we will utiltze in detemining an appropriate Sewerage Facility Participation Fee. -5- 1. Alternative No. 1 (Investment, plus interest, plus overhead) Assume that the annual payment ($12,098) if invested could have earned an average return of 10~. '(Note: 10~ return verified by City Finance Officer re period 1963-1983.) If earnings for each year's investment are compounded for the appropriate total number of years and then added, the result will be the total cash amount which would currently be in the account. Additionally, there are expenses involved in collecting sewor service charges. Such expenses include postage, rncord keeping, management, etc. and are assmaed herein to total 10~ of the direct amount paid. ($12,098 + $1,210 -- $13,3081 This sum is regarded herein as the direct annual cost per Using Grant's 'Principles of Engineering £conoey" tables~ the total value of such an investment ($13,308) over a 21-year period can be detemtned. Number of payments = 20.83 (as of 2-1-84) Interest rate = 10~ Amount of payment = $13,308 Compound amount factor (F/A) = 62.858 $13,308x 62.858 = $836,514 = Compounded value of the tnvesment · for each 1 traO in Metre capactty r~ghts 3774 ~ Number of equivalent dwelling units (EOUs) which can be served by 1 t4GO in capacity rights at the rate of 265 gallons per day' per EOU. $836,514 = $2~.65 ='Compounded value of the investment for each £OU (2-1-84) 2. Alternative No. 2 (Replacement cost) The Engineering NO~s Record (ENR) ~agaztne m~fntetns running indexes of construction, building, labor and material costs. Indexes are given relative to stmtlar costs in the base year 1913. By knowing the index for any two subsequent months, it is possible to express the pe~entage change tn cost which occurred during the intervening. time between the two specified months. ENR construction cost tndex June 14, 1984 ~ 4,160 ENR construction cost index September 1963 = 914 Difference 3,246 ~ [ncrease 324.6~ Therefore, constrectton costs for stmllat work In June 1984 were 3.246 t~mes those of September 1963. The recognized 1963 "annua] cost' used heretn is $13,308 per 14GO for Metro capacity rights. (See Alternative No. 1). As of F~breary 1, 1984, the City has made 20.83 annual payments. -6- 3,246 x $13,308 x 20.83 = :]~899,810 = Aggregate expense per ~D on an · ad,lusted cost basts 3774 = Number of EOUs whtch can be servei~ by 1 ~ tn capactty rtghts $238.42 = Aggregate expense per EDU on adjusted cost basts (6-84) G. Detena~naUon of the Cost for Ctty Participation tn Trunk Se~er Med-I ftcattons The f~rst of the t~o factors considered appropriate as the bests of a sewage facJltty parUctpatton fee was "Cost of Metro Reserve Capacity." The second ts the cost of Ctty parttctpatfon tn trunk sewer ~odt~tcattons. 1. Assu~pt, J ohs Used e . In order to esttmate trunk sewer costs, {t Is necessary that a series of assumptions be made. Those made for thts study are as follows-~ A. I~ork on trunk sewers cmparub]e to that whtch has occurred du~ng the last 20 years ts Hkely to be necessary. Thts ts the equivalent to the cost of buJldtng Hve miles of 12" sewer. 8. The EDU count ~ill tn~rease tn pruporUon to population and population w111 tncrease per the SANDAG Sertes 6 Pro;~ectton. C. Work on trunk se~er modifications ts l~kely to be funded enttrely by pub]tc funds. Esttmate of Cost for Trunk Sewer Medtftcattons: A. 37,900' of 12" sewer at $37 per ft. = B. 30f, Eng~neertng/RJght-of-Way/conttngencte~ = TOTAL $1,402,300 420,690 ~1,822,990 3. SANDAG Population P~oJectton Using the SA#D~ Sertes 6 projection as a basis, £ngineertng staff had detemtned that the number of EDU's tn the Ctty ~ould tncrease by appreximately 27,050 untts by 2003. 4. Cost per EOU for Trunk Sawers $1,822~990 Total Cost ~7,050 (projected New EDUs) = $67.39 -7- }1. Total Cost Determination The total cost to be reflected by the sewerage facility participating fee is the sma of the previously determined cost of t4etm reserve capacity plus the cost of trunk sewer modification. Metro ReserVe Capacity (Alternate #1) = 221.65/EDU Trunk Sewer Hodification -- 67.39/EDU TOTAL (w/ Alt. #l) 28g. O4/EDU - or - Metro ReserVe Capacity (Al ternat~ #2) = City Participation in Future Trunks = TOTAI~ (w/ Alt. #2) 238.42/EDU $7.39/EDU 305.81/EDU The above cost determinations are based in part upon actual known expenses, and in part upon best available information and/or estimates. Results should not be regarded as precise but instead, as logical approximations of the amounts expended and/or projected on a per EOU basis for the purpose of assuring adequate Metro capacity and City-wide trunk sewer adequacy. The range of values obtained support the use of $300 per EOU as an appropriate and justifiable sewerage facility participation fee. Applicability of Fee The basis of fees to be collected is proposed to be $300 per EOU. Such amount is to be assessed proportionately against all new connections to the system and/or old connections from which permanent significantly greater sewage flow can reasonably be projected. A table showing sewage generation rates in EOUs by the more common structure types is proposed to be prepared to' facilitate simple and uniform fee determination. Sewage generation for land uses other than those shown in the table will be determined on the basis of the number of 265 gallon 'units' projected to be generated. Thus, fees will be determined in all instances on the basis of sewage flew expressed in terms of EDUs. A similar philosophy .will be applied to existing connections to be modified in which a permanent significant increase in generation is projected. Such increase will similarly be charged on the basis of projected flow expressed in terms of EDUs, but only in those instances where the increase is projected to be at least the equivalent of one-half of one EDg. Projected Income Income will be totally dependent upon the rate of new construction in the City. Outing the period 1979-1983 an average of 273 EOUs per year were constructed, Such moderate growth, if continued, would generate approximately $82,000 per year under the proposed fee structure. -8- The pe~tod 1976-1978 in contrast expe~enced an average growth rate of 1,Ol$ EDUs per year whlch wouid generate an annual tncoem of nearly $305,000. Future gro~rl~ wtll 11kely fall between the figures ctted. ¥. SLMHRRY/CONCLUSIONS Twenty-one years ago, the City wisely elected to purchase sufficient Metro system capacity to accommodate its growth through the rest of the century. Subsequent to that time the citizenry has borne the cost of both utilized and reserve capacities via the sewer service charge. All growth within the City capitalizes on the availability of .reserve capacity. It is appropriate and equitable that those who use the capacity so reserved pay for the privilege. Experience has shown that both trunk and laterel sewers require repair, replacement or other modification in or, er to assure continuity of use, efficiency of utilization or adequacy of capacity. It is likely that such activities will continue and even increase in the future as the collective system gets older. It is appropriate that new members of the community share in the cost to keep the trunk sewer portion of the system' functionally effective. Engineering staff investigated a variety of costs upon which to base a sewerage factlity participation fee. Most lacked a clearly definable relationship to the person or property seeking a new sewer connection. Others, such as segments of the existing City sewer system, have already been uttltzed as the basis of other fees (sewer reimbursements, etc.). The "costs" for reserve Metro capacity and trunk sewer modifications were selected as being both Justifiable and equitable for use as the basis of a sewerage facility participation fee. A fee of $300 per EOU for all new construction is proposed for implementation. It is suggested that income from the proposed Sewerag~ Facility Participation fee be divided equally between the Sewer Service Fund and a proposed Trunk Sewer Capital Reserve Fund. Chula Vista is one of the few area agencies which does not now impose a capacity fee for sewerage facilities. The proposed fee is significantly lower than similar purpose fees typical for other agencies. Xn the opinion of Engineering staff, it has a sound basis, it is equitable, it is not likely to stimulate significant adverse public reaction, and it is capable of adoption without need of a City-wide election. WPC 088;E -g- ATTACHMENT 2 Table 'CITY OF CIRILA VISTA :COST ALLOC~T IOM Fiscal Year 1990-91 Assuned Ftous Pre-/d~'~ex. Clmta Vista 10.4.1 H~nt9 .~ry Area 2.~6 Fte~ Suspended SoLids ALlocation ALLocation Percontape Amount Percentage AmmJnt Total San Diego Metro Costs Pre-Annexation Chul. a Vista Area Capital Projects Fixed _e r-~Aty charges ~ Upgrade Coats CU~ Upgrade Costs Reduced by Debt Service ~ F.~;~,sed Debt Service C~ Frcnt Funding Paybeck Metro I setterme~t Costs Internal Oebt Service to Hetro Sinking Fund SubtotaL--CapitaL 0 & # Expenses $~btotai--Metre Costs (Pre-Annexation ?LO'A ' 804.,9~ ~6.0'~ 282,815 1,087,74.9 $1.8~ 1,08~,692 ~9.42 1,888,626 ~8.2X 1,008,377 2,09Z,069 40,6X 1,Z91,1~ 3,17~,818 Montgomery Area Capital Projects Fixed _e_%~_ ity Charges C~P Upgrade Costs ~ Upgrade Costs Reduced by Debt Service ~ P;~,~ed Debt Service ~ Fro~t Funding Payback Metro ! Betterment Coats Interne( Debt Service to Metre Sinking F~ld Subtotat - -chpJ tat O & M Expenses SubtotaL--Metro Costs (~ontgomryAros) 74..0Y. 29,837 26.0~ 10,483 4.0,321 7L~ 1A24.,5:% 26.g 5~,5~ 1,~5,033 74.~ 0 26.~ '0 0 7~.~ 0 ~.~ 0 O 74.~ (1,521,97&) ~.~ C5~,7~) (2,~6,~) 7&.~ 71,Z~ Z6.~ ~,~1 ~,~11 7L~ 1~,~ ~.~ ~,~0 1~,~ ?&.02 1~6,857 ?.6.02 48,085 ; .18~,9~2 51.8~ 23~,535 ~8.2~ 222,887 58.1X 376,391 41.9'/. 270,972 6~Z,36~ 04712/91 Table 1 CITY OF CHULA VISTA CO~T ALLOCAT I C~ Fiscal Tear 1~x;0-91 Fto~ ALLocation PerCentage C(~btned Netro Systm Co, ts Capital Pro. jeers Fixed capacity Charoes Ct~P LIpgrods Costa ~ Upgrods Costa P~_ ~d by Debt Service CiAo Prcpc~ed Oebt Service C~P Front Finding payback Metro ! Betterm~t CoSts Internal Debt Service to Hetro sfflkincj Fund SubtotaL--~)pitaL TotaL--Metro Charges 59.0'/* Z,641,409 Assuned FLC~ (HGO) Pre-A~nex. Chula Vista Nontgclmry Area 10.41 ~_ _,~F~-~d SoLids ALLocation Amount Percentage A~t -Total 26.0X. 56,680 210,000 26.0X. 2,706,080 10,408,000 26.0'Z · 0 0 26. O',C 0 0 26.0~ (2,891,~:00) ( 11,1ZO, 000) 26.0~ 137,719 $Z9,690 2)6. OX. 321,620 1, ,%37, 000 31.3~ 601,872 1,920,054 ~8.Z% 1,Z31,Z65 2,554,491 41.0'~ 1,833,136 4,~74,545 0~/12/91 t CITY OF SAN DIEGO, C~'i"~RNIA · GENERAL INVDIt 'E EDZ REF NO:- C362287 MA~ REMIITANCE PAYA~ TO C~Y 7REA~ CITY OF CNULA VISTA DIVISION OF FINANCE P 0 BOX 1087 CHULA VISTA CA 92012 PAYHENT DATE: BY'- CA-CK lF ED PAYNENT' REF NO INVOICE DATE 04~/23/02 ACCT.NO 000693 ...... TREASURERS USE. ONLY~ ~ ..... I' I I I I AMT pAID: : PAYNENTDUE PERIOD COVERED 05131102 FOR INFORMATION CONCERNING YOUR BILLING CONTACT: PEggY NERINO REF NOt DEPT: METRO WASTEHATER -.ADM[N 858 292 6322 DESCRIPTION OF CHARGES AMOUNT METROPDLTTAN SEWERAGE SYSTEM FY '2002 ~H QTR FUND '4Z'509 FY ZOO/ YEAR-END ADJUSTNEHT - FY ZOO2 ESTIMATE.ADJUSTMENT 3s470s6~6-O0 918sliSoOO- 918tl18.00. ENCLOSURE TOTAL DUE 3t~TOs6&6.00 NOTICE~ PLEASE REMIT PAYMENT PROMPTLY. PAYMENT MUST BE RECEI¥~D BY'THE DUE DATE L~STEO ABOVETO AVOID ADDITIONAL CHARGES. UNPAID BILLS HILL BE SUBJECT TO A COLLECTION FEE OF ZO~ OR S1Ot BNICHEVER IS GREATERs INTEREST OF ~ PER HONTH ON THE U~PAID BALANCEs AND APPLICABLE PENALTIES. Al'C/ qUESTIONS s,o,~ilJ..~Mi~:J~rTJ, E.O TO THE CONTACT ",c.s&.~T..e~T~ABOVE- INV NO. 36228T McGraw-Hill Construction [ ENR - Features I ATTACHMENT3 Page 1 of 2 Subscriptions J advertise J careers I co us J my account features & covers Buildings Business & Labor Education Environment Power & Industrial e-Construction Transportation Intemation;'l Construction Economics , ENR i I I II ENR Construction Cost Index History Construction Cost Index History (1908-2002) HOW ENR BUILDS THE INDEX: 200 hours of common labor at the 20-cit~ average of common labor rates, plus 25 cwt of standard structural steel shapes at the mill price prior to 1996 and the fabricated 20-city price from 1996, plus 1.128 tons of portland cement at the 20-city price, plus 1,088 board-ff of 2 x 4 lumber at the 20-city price. JAN FEB MAR APR MAY JUN JUL 1980 3132 3134 3159 3143 3139 3198 3260 1981 3372 3373 3384 3450 3471 3496 3548 1982 3704 3728 3721 3731 3734 3815 3899 1983 3960 4001 4006 4001 4003 4073 4108 1984 4109 4113 4118 4132 4142 4161 4166 1985 4145 4153 4151 4150 4171 4201 4220 1986 4218 4230 4231 4242 4275 4303 4332 1987 4354 4352 4359 4363 4369 4387 4404 1988 4470 4473 4484 4489 4493 4525 4532 1989 4580 4573 4574 4577 4578 4599 4608 Sea AUG SEP OCT NOV n"~ ANNUAL ~m~. AVG 3304 3319 3327 3355 3376 3237 3616 3657 3660 3697 3695 3535 1 · 3899 3902 3901 3917 3950 3825 4132 4142 4127 4133 4110 4066 4169 4176 4161 4158 4144 4146 ~ 4230 4229 4228 4231 4228 4195 4334 4335 4344 4342 4351 4295 4443 4456 4459 4453 4478 4406 I 4542 4535 4555 4567 4568 4519 4-6~18 4658 4658 4668 4685 4615 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV 1990 4680 4685 4691 4693 4707 4732 4734 1991 4777 4773 4772 4766 4801 4818 4854 1992 4888 4884 4927 4946 4965 4973 4992 1993 5071 5070 5106 5167 5262 5260 5252 1994 5336 5371 5381 5405 5405 5408 5409 1995 5443 E~.~.~. 5435 5432 5433 5432 5484 1996 5523 5532 5537 5550 5572 5597 5617 1997 5765 5769 5759 5799 5837 5860 5863 1998 5852 5874 5875 5883 5881 5895 5921 1999 6000 5992 59866008 6006 6039 6076 4752 47744771 4787 48924891 4892 4896 5032 5042 5052 5058 5230 525552645278 5424543754375439 55065491 5511 5519 56525683 5719 5740 58545851 5848 5838 5929 5963 5986 5995 6091 6128 61346127 ANNUAL DEC AVG 4777 4732 . 1 1 4889 4835 5059 4985 5310 5210 5439 5408 ~ 5524 5471 5744 5620 5858 5825 5991 5920 6127 6060 ANNUAL DEC AVG 6283 6221 6390 6342 6563 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV 2000 6130 6160 6202 6201 62336238 6225 62336224 6259 6266 2001 6281 6273 6280 62866288 63196404 6389 6391 63976410 2002 6462 6462 65026480 6512 6532 6605 6592 6589 6579 6578 Base:1913=100 ANNUAL. AVERAGE 1908 97 1931 181 1954 628 1977 2576 t909 91 1932 157 1955 660 1978 2776 19t0 96 1933 170 t956 692 1979 3003 McGraw-Hill Construction [ ENR - 1911 ~ 1912 I I t9t3 1914 1915 1916 F I 19t7 Features 93 1934 198 1957 724 91 1935 196 1958 759 100 1936 206 1959 797 89 1937 235 1960 824 93 1938 236 1961 847 130 1939 236 1962 872 181 1940 242 t963 901 1918 189 1941 258 1964 936 1919 198 1942 276 1965 971 1920 251 1943 290 1966 1019 1921 202 1944 299 1967 1074 1922 174 1945 308 1968 1155 1923 214 1946 346 1969 1269 1924 215 1947 413 1970 1381 1925 207 1948 461 1971 1581 1926 208 1949 477 1972 1753 1927 206 t950 510 1973 1895 1928 207 1951 543 1974 2020 1929 207 1952 569 1975 2212 1930 203 1953 600 1976 2401 Page 2 of 2 Click here to view the ENR Cost Indexes FAQ'S >> All Rights Reserved Dur Sites I McGraw-Hill Sites ATTACHMENT ,..,.¢ An employee-owned ccmpany March 5, 2003 Mr. Cliff Swanson Director of Engineering City of Chula V!ista 276 Fourth Avenue Chula Vista, CA. 91910 SUBJECT: INTERIM INCREASE TO THE SEWERAGE CAPACITY CHARGE Dear Mr. Swanson: As a portion of the wastewater rate study that is currently under way, we have completed our preliminary review of your current Sewerage Capacity Charge. Based on this initial effort, we determined that in March of 1985, your Public Works Department prepared a Study titled "Sewerage Facility Participation Fee Study-Modified March 1985." The purpose of that study was to investigate the feasibility of establishing a capacity fee that wot]id be applicable to all new sewer connections to the City's sewer collection system. The study recommended amongst other things, the establishment of a Sewerage Participation fee that would be adjusted on an annual basis to reflect changes in construction costs (suggested basis - Engineering News Record Construction Cost Index (ENR-CCI) most applicable to July I of each year). Your capacity fee was updated several times between 1985 and 1990 based on several studies. On October 9, 1990, the City of Chula Vista City Council increased the Sewerage Capacity Charge to $2,220 to enable the City to meet its obligation to the Metro System for the upgrade of the Point Loma treatment plant. The Resolution further recommended that the Sewerage Capacity Charge be increased annually by 11 percent for a period of 8 to 10 years therea~2er. This recommendation was made in anticipation of future expenditures that may be incurred by the Metro system in the process of complying with EPA regulations. Since then, this was not done due to a variety of reasons even though the original study which established the fee and subsequent Council actions had recommended that the City update the fee annually to reflect the increase in capacity, improvements, maintenance and operation costs. During the course of our analysis, we reviewed the changes in the ENR-CCI since the last time the City adjusted their capacity fees in 1990. Since that time, the ENR-CCI has increased by 1.5 percent. This means that the City's capacity charge has current buying dollars of approximately $1,500. The 1.5 percent increase in the ENR CCI-LA is substantially less than the l 1 percent per year adjustment included in the 1990 Ordinance. 175 Ca0e Magdalena .' Encinitas, California 92024 · Telephone: 760.753.1120 · Fax: 760.753.0730 · www.pbs{ cern Mr. Cliff Swanson March 5, 2003 Page 2 of 2 We are in the process of developing new City of San Diego Metro Costs (as part of the consulting work we do for the Metro Technical Advisory Committee) as well as the City of Chula Vista's Wastewater Master Plan Update, which currently scheduled to be completed by the end of the year. The Wastewater Master Plan will include a comprehensive review of the Sewerage Capacity Charge and will include a recommendation for an update of the Sewerage Capacity Charge to cover the additional Metro and local costs. Based on the preliminary analysis completed to date, we are in the interim recommending that the City of Chula Vista update their existing capacity fee of $2,220 to $3,000 to bring the fee to present value. '13fis will allow the City to recover their existing costs on a current dollar basis, pending the completion of the Wastewater Master Plan. If you have any questions, please call me at (760) 753-1120 Ext. 427. Sincerely, Karyn L. Keese Client Financial[ Services Manager KLK:mac l:\admin\0811\621947\L etters\M AC MAR2003 Inl lnc to Swrg Cap Charge - Swanson.floc ORDINANCE NO. . ~O~\0~ Om INA CE CITY f V STA APPROVING ~ INC~ASE ~F~EWE~GE CAPACITY CH~GE ~~ODIFICATION OF THE MASTER ~E SCH~ULE WHEREAS, in March of 1985, the Engineering Department prepared a Study titled "Sewerage Facility Participation Fee Study-Modified March 1985 ". The purpose of this study was to investigate the feasibility of establishing a capacity fee that would be applicable to all new sewer connections to the City's sewer collection system; and, WHEREAS, upon completion, this study recommended among other things, the establishment of a Sewerage Capacity Charge that would be adjusted on an annual basis to reflect changes in construction costs (suggested basis: Engineering News Record Construction Index most applicable to July 1 of each year); and, WHEREAS, on April 2, 1985, City Council by Ordinance 2107, approved the establislunent of the Sewerage Facility Participation Fee, now referred to as the Sewerage Capacity Charge, to enable the citizenry to be repaid for their initial investment and to facilitate the development of Chula Vista. At that time, the fee was set to be $300 per Equivalent Dwelling Unit (EDU); and, WHEREAS, the City of Chula Vista along with fourteen other agencies that belong to the Metro System sends its flow to the City of San Diego's Point Loma Wastewater Treatment Plant for handling of the sewage; and, WHEREAS, in anticipation of the significant costs of upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment facility, for which the City of Chula Vista as well as other participating agencies was liable, Council on May 5, 1987, approved Resolution No. 13004 and Ordinance No. 2002 increasing the Sewerage Capacity Charge from $300 to $600; and, WHEREAS, in 1989 following the adoption of the Clean Water Act, the Environmental Protection Agency (EPA) directed the City of San Diego to upgrade the Plant to a Secondary Treatment facility. Since Federal funds were not anticipated to be available for the required upgrades at that time and the cost of bringing the Plant into compliance seemed to be far greater than what was originally anticipated in 1987, Council on October 17, 1989 approved Resolution Nos. 15352 and 15352A. These Resolutions increased the Sewerage Capacity Charge to $2,000, pending the completion of various studies being conducted at that time to determine the impact of upgrading the treatment plant; and, Ordinance No. Page 2 WHEREAS, in October 9, 1990, Council by Resolution 15894 further increased the Sewer Participation Fee to $2,220 to enable the City meet its obligation to the Metro System for the upgrade of the treatment plant; and, WHEREAS, the City has not adjusted the Sewerage Capacity Charge since 1990, even though Metro's costs for the provision of sewage capacity and treatment services have been increasing annually for the past twelve years. In addition, no adjustments had been done to this charge to keep up with inflation as originally intended at the inception of the fee; and, WHEREAS, Chula Vista currently has capacity rights in the Metro Sewer System to cover growth for the next few years. This capacity was acquired with funds generated by the Sewerage Capacity Charge that existing residents paid when they made their connection to the City's sewer system. If reserved capacity in the Metro Sewer System had not been purchased, new residents would either have not been permitted to build, or would have been required to pay for the acquisition of additional treatment capacity. Instead, new residents are permitted to make use of the reserved capacity held by the City; and, WHEREAS, the increase in the Sewerage Capacity Charge, applicable to all new sewer connections, is proposed as a mean of recuperating the cost of reserve capacity and also maintain a fund that will fund the acquisition of additional capacity and subsidize the cost of the necessary sewer improvements that will benefit all City residents; and, WHEREAS, The City recently retained PBS&J to update the City's Wastewater Master Plan with the primary goal of evaluating the adequacy of the existing wastewater collection system to sustain the long-term growth of the City. The plan will also assist the City in: budgeting for Capital Improvement Projects (CIP), allocating resources for the acquisition of additional sewage capacity and determining the short and long-term sewer capacity needs of the City. Since the Master Plan is scheduled to be completed by Fall 2003, the consultant is advising the City to implement one of the recommendations made in the 1984, Sewerage Facility Participation Fee Study, which is to adjust the Sewerage Capacity Charge to reflect the changes in construction costs, based on the Engineering News Record Construction Cost Index (ENR CCI). This increase will be needed to keep up with inflation while the consultant makes its final recommendation; and, WHEREAS, the ENR CCI is a monthly composite figure of the cost of various construction material and labor costs as measured by the Engineering News Record Magazine. As such, the City's consultant and staff believe {hat it is a more accurate predictor of the effects of inflation on a typical construction project than the CPI or other measure of inflation. Utilizing the ENR CCI for July 1990 and for July 2002 as the basis of the increase, the Sewerage Capacity Charge will be increased from $2,220 per Equivalent Dwelling Unit to $3,000 per Equivalent Dwelling Unit; and, Ordinance No. Page 3 WHEREAS, the City Council has determined that the amount of the fee levied by this Ordinance does not exceed the estimated cost of providing the public facilities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I: SECTION II: That the Chapter XII Engineering - Sewer, Section 3(a) of part A of the Master Fee Schedule be, and the same is hereby amended to read as follows: "3. Sewerage Capacity Charge The owner or person making application for a permit to develop or modify use of any residential, commercial, industrial or other property which is projected by the City Engineer to increase the volume of flow in the City sewer system by at least one-half of one Equivalent Dwelling Unit of flow shall pay a sewerage facility participation fee Sewerage Capacity Charge. The base charge is hereby established as,,_,~.v~:~ ~'~ __$3-000 per Equivalent Dwelling Unit of flow." CEQA Findings for Statutory Exemption. The City Council does hereby find that the Sewerage Capacity Charge herein imposed is for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. Therefore, the City finds that the adoption of this Ordinance is statutorily exempt under the provisions of CEQA Guidelines Section 15060(c)(3). SECTION III: Findings The City Council finds that the collection of the Sewerage Capacity Charge, established by Ordinance No. 2107, at the time the building permit is issued is necessary. This will ensure that funds will be available for the acquisition of capacity rights in the Metro System, construct improvements to enhance capacity in the City's sewer system and to pay for the treatment of sewage; and, Ordinance No. Page 4 The City Council finds that developers of land within the City should be required to mitigate the burden created by development through the payment of a fee to finance a development's appropriate portion of the total cost of the sewer improvements, sewage treatment and capacity rights in the Metro System; and, The City Council finds that the legislative findings and determinations set forth in the Ordinance referred to in the above recitals continue to be true and correct; and, The City Council finds, after consideration of the evidence presented to it, that the increase of the Sewerage Capacity Charge is necessary in order to assure adequate sewer service to the City; and, The City Council finds, based on the evidence presented at the meeting and the information received by the City Council in the ordinary course of its business, that the imposition of the Sewerage Capacity Charge on all future developments in the City for which building permits have not been issued is necessary in order to protect the public health, safety and welfare; and, The City Council finds that the amount of the amended fee levied by this Ordinance does not exceed the estimated cost of providing the sewer service to the developments within the City; and, The City Council finds that it is appropriate to approve an increase to the Sewerage Capacity Charge to reflect: the acquisition of additional capacity rights; the annual increase in the Metropolitan Sewerage System Costs; the increase in the need for improvements created by the demand for more capacity in the sewer system; and, The City Council finds it is necessary to ensure sewer capacity in the Metro system before the reserved capacity is exhausted and to ensure the timely payment to adequately fund ongoing and future sewer improvements to enhance capacity in the City's sewer system triggered by future development. Ordinance No. Page 5 SECTION IV: SECTION V: Time Limit for Protest and Judicial Action. Any judicial action or proceeding to attack, review, set aside, void or annul this Ordinance shall be brought within the period as established by law. In accordance with Government Code Section 66020(d)(1), the ninety-day approval period in which parties may protest beginning upon the effective date of this Ordinance. Effective Date. This Ordinance shall become effective sixty (60) days after its second reading and adoption. Presented by: Approved as to form by: Clifford L. Swanson Director of Engineering City Attorney J:\ATTORNEY\RESO\SEWER CAPACITY INCREASE ORDINANCE.SH.DOC ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA APPROVING AN INCREASE OF THE SEWERAGE CAPACITY CHARGE AND THE MODIFICATION OF THE MASTER FEE SCHEDULE WHEREAS, in March of 1985, the Engineering Department prepared a Study titled "Sewerage Facility Participation Fee Study-Modified March 1985 ". The purpose of this study was to investigate the feasibility of establishing a capacity fee that would be applicable to all new sewer connections to the City's sewer collection system; and, WHEREAS, upon completion, this study recommended among other things, the establishment of a Sewerage Capacity Charge that would be adjusted on an annual basis to reflect changes in construction costs (suggested basis: Engineering News Record Construction Index most applicable to July 1 of each year); and, WHEREAS, on April 2, 1985, City Council by Ordinance 2107, approved the establishment of the Sewerage Facility Participation Fee, now referred to as the Sewerage Capacity Charge, to enable the citizenry fo be repaid for their initial investment and to facilitate the development of Chula Vista. At that time, the fee was set to be $300 per Equivalent Dwelling Unit (EDU); and, WHEREAS, the City of Chula Vista along with fourteen other agencies that belong to the Metro System sends its flow to the City of San Diego's Point Loma Wastewater Treatment Plant for handling of the sewage; and, WHEREAS, in anticipation of the significant costs of upgrading the Point Loma Wastewater Treatment Plant to a secondary treatment facility, for which the City of Chula Vista as well as other participating agencies was liable, Council on May 5, 1987, approved Resolution No. 13004 and Ordinance No. 2002 increasing the Sewerage Capacity Charge from $300 to $600; and, WHEREAS, in 1989 following the adoption of the Clean Water Act, the Environmental Protection Agency (EPA) directed the City of San Diego to upgrade the Plant to a Secondary Treatment facility. Since Federal funds were not anticipated to be available for the required upgrades at that time and the cost of bringing the Plant into compliance seemed to be far greater than what was originally anticipated in 1987, Council on October 17, 1989 approved Resolution Nos. 15352 and 15352A. These Resolutions increased the Sewerage Capacity Charge to $2,000, pending the completion of various studies being conducted at that time to determine the impact of upgrading the treatment plant; and, Ordinance No. Page 2 WHEREAS, in October 9, 1990, Council by Resolution 15894 further increased the Sewer Participation Fee to $2,220 to enable the City meet its obligation to the Metro System for the upgrade of the treatment plant; and, WHEREAS, the City has not adjusted the Sewerage Capacity Charge since 1990, even though Metro's costs for the provision of sewage capacity and treatment services have been increasing annually for the past twelve years. In addition, no adjustments had been done to this charge to keep up with inflation as originally intended at the inception of the fee; and, WHEREAS, Chula Vista currently has capacity rights in the Metro Sewer System to cover growth for the next few years. This capacity was acquired with funds generated by the Sewerage Capacity Charge that existing residents paid when they made their connection to the City's sewer system. If reserved capacity in the Metro Sewer System had not been pumhased, new residents would either have not been permitted to build, or would have been required to pay for the acquisition of additional treatment capacity. Instead, new residents are permitted to make use of the reserved capacity held by the City; and, WHEREAS, the increase in the Sewerage Capacity Charge, applicable to all new sewer connections, is proposed as a mean of recuperating the cost of reserve capacity and also maintain a fund that will fund the acquisition of additional capacity and subsidize the cost of the necessary sewer improvements that will benefit all City residents; and, WHEREAS, The City recently retained PBS&J to update the City's Wastewater Master Plan with the primary goal of evaluating the adequacy of the existing wastewater collection system to sustain the long-term growth of the City. The plan will also assist the City in: budgeting for Capital Improvement Projects (CIP), allocating resources for the acquisition of additional sewage capacity and determining the short and long-term sewer capacity needs of the City. Since the Master Plan is scheduled to be completed by Fall 2003, the consultant is advising the City to implement one of the recommendations made in the 1984, Sewerage Facility Participation Fee Study, which is to adjust the Sewerage Capacity Charge to reflect the changes in construction costs, based on the Engineering News Record Construction Cost Index (ENR CCI). This increase will be needed to keep up with inflation while the consultant makes its final recommendation; and, WHEREAS, the ENR CCI is a monthly composite figure of the cost of various construction material and labor costs as measured by the Engineering News Record Magazine. As such, the City's consultant and staff believe that it is a more accurate predictor of the effects of inflation on a typical construction project than the CPI or other measure of inflation. Utilizing the ENR CCI for July 1990 and for July 2002 as the basis of the increase, the Sewerage Capacity Charge will be increased from $2,220 per Equivalent Dwelling Unit to $3,000 per Equivalent Dwelling Unit; and, Ordinance No. Page 3 WHEREAS, the City Council has determined that the amount of the fee levied by this Ordinance does not exceed the estimated cost of providing the public facilities. WHEREAS, the City Council is placing an Ordinance on its first reading which will increase the Sewerage Capacity Charge and modify the Master Fee Schedule; and, WHEREAS, the fees modified by that Ordinance will not become effective until sixty (60) days after its second reading; and, WHEREAS, developers in the City will be applying for building permits during the interim period before the increased Sewerage Capacity Charge becomes effective; and, WHEREAS, Government Code Section 66017(b) authorizes the City to adopt a fee as an urgency measure upon making a finding describing the current and immediate threat to the public health, welfare and safety; and, WHEREAS, said easure will be effective for thirty (30) days and may be extended for additional thirty (30) day periods upon subsequent action by the City Council; and, WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is necessary; and, WHEREAS, state law requires said Urgency Ordinance to be adopted by a four- fifths vote. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I: Finding of Urgency The City Council of the City of Chula Vista finds that it is necessary that the Sewerage Capacity Charge be increased and the Master Fee Schedule modified and the increase go into effect immediately. The increase is needed in order to require all developments to pay their fair share of the cost off acquiring additional sewer capacity, paying for sewage treatment and the construction of improvements needed to enhance the capacity of Ordinance No. Page 4 the City's sewer system, and all other related eligible expenditures resulting from the impacts caused by their developments. Immediate implementation of this fee is necessary due to the current and iinmediate threat to public safety. Should there be a shortfall in the funds necessary to pay for additional sewage treatment capacity and the needed sewer improvements, it could result in the failure of the existing sewage collection system and sewage spills. The City Council finds that the prospect of a deficit, not enough sewer capacity to serve the growing population, the failure of old sewer infrastructure and concerns about an increased charge to remaining property owners, constitutes a current immediate threat to the public health, welfare and safety justifying the immediate imposition of this fee. SECTION II: SECTION III: SECTION IV: That the Chapter XII Engineering - Sewer, Section 3(a) of part A of the Master Fee Schedule be, and the same is hereby amended to read as follows: "3. Sewerage Capacity Charge The owner or person making application for a permit to develop or modify use of any residential, commemial, industrial or other property which is projected by the City Engineer to increase the volume of flow in the City sewer system by at least one-half of one Equivalent Dwelling Unit of flow shall pay a sewerage facility participation fee Sewerage Capacity Charge. The base charge is hereby established as $2,229 $3,000 per Equivalent Dwelling Unit of flow." CEQA Findings for Statutory Exemption. The City Council does hereby find that the Sewerage Capacity Charge herein imposed is for the purpose of obtaining funds for capital projects necessary to maintain service within existing service areas. Therefore, the City finds that the adoption of this Ordinance is statutorily exempt under the provisions of CEQA Guidelines Section 15060(c)(3). Findings Ordinance No. Page 5 The City Council finds that the collection of the Sewerage Capacity Charge, established by Ordinance No. 2107, at the time the building permit is issued is necessary. This will ensure that funds will be available for the acquisition of capacity rights in the Metro System, construct improvements to enhance capacity in the City's sewer system and to pay for the treatment of sewage; and, The City Council finds that developers of land within the City should be required to mitigate the burden created by development through the payment of a fee to finance a development's appropriate portion of the total cost of the sewer improvements, sewage treatment and capacity rights in the Metro System; and, The City Council finds that the legislative findings and determinations set forth in the Ordinance referred in the recitals set forth above, continue to be true and correct; and, The City Council finds, after consideration of the evidence presented to it, that the increase of the Sewerage Capacity Charge is necessary in order to assure adequate sewer service to the City; and, The City Council finds, based on the evidence presented at the meeting and the information received by the City Council in the ordinary course of its business, that the imposition of the Sewerage Capacity Charge on all future developments in the City for which building permits have not been issued is necessary in order to protect the public health, safety and welfare; and, The City Council finds that the amount of the amended fee levied by this Ordinance does not exceed the estimated cost of providing the sewer service to the developments within the City; and, The City Council finds that it is appropriate to approve an increase to the Sewerage Capacity Charge to reflect: the acquisition of additional capacity rights; the am~ual increase in the Metropolitan Sewerage System Costs; the increase in the need for improvements created by the demand for more capacity in the sewer system; and, The City Council finds it is necessary to ensure sewer capacity in the Metro system before the reserved capacity is exhausted and to ensure the timely payment to adequately fund ongoing and future sewer improvements to enhance capacity in the City's sewer system triggered by future development. Ordinance No. Page 6 SECTION V: SECTION VI: SECTION VI: Expiration of this Ordinance. This Ordinance shall be of no further force and effect thirty (30) days after its adoption. Time Limit for Protest and Judicial Action. Any judicial action or proceeding to attack, review, set aside, void or annul this Ordinance shall be brought within the period as established by law. In accordance with Government Code Section 66020(d)(1), the ninety-day approval period in which parties may protest begins upon the effective date of this Ordinance. Effective Date. This Ordinance shall become effective immediately upon four- fifths vote. Presented by: Approved as to form by: Clifford L. Swanson Director of Engineering City Attorney J:~ATTORNEY\RESO\SEWER CAPACITY INCREASE URGENCY ORDINANCE.SH.DOC ITEM TITLE: SUBMITTED BY: REVIEWED BY: COUNCIL AGENDA STATEMENT Item tqL Meeting Date 3/25/03 Resolution Rejecting Bids for the "Installation of Uninterruptible Power Supply (UPS) Systems on Various Traffic Signals in the City of Chula Vista- Phase II" (TF293) Director of Engineering~ Ci Mana~er(-9?~'~ ' ?, ty ~ ~r~ 0r~ 4/5ths Vote __Yes X No) On January 8, 2003, the City Engineer received sealed bids from three (3) electrical contractors for the Installation of Uninterruptible Power Supply (UPS) Systems - Phase II (TF293). However, upon further financial analysis of the project and in the best interest of the City, staff recommends that all bids be rejected and that staff is directed to rabid this project utilizing a reduced scope of work. RECOMMENDATION: That Council approve the resolution rejecting bids for the "Installation of Uninterruptible Power Supply (UPS) Systems on Various Traffic Signals in the City of Chula Vista - Phase 1I" (TF293). BOARDS/COMMISSIONS: Not applicable. DISCUSSION: When this project was created, $500,000 was budgeted for the installation of Uninterruptible Power Supply Systems (UPS), Light Emitting Diode (LED) pedestrian indications, and amber LED vehicle indications at 55 signalized intersections. With both the SDG&E and the California Energy Commission (CEC) offering grant incentives in 2002, staff decided to split this project into two phases in order to utilize these grants. Phase I was designed to install pedestrian LED indications at all traffic signals in Chula Vista. After the completion of Phase I and receiving a $78,000 rebate fi.om SDG&E, a balance of $267,000 remained in the project account. Phase II was designed to complete the overall project by installing UPS equipment and amber LED vehicle indications on traffic signals throughout Chula Vista. As mentioned above, the CEC announced a grant program, which offered local municipalities grant rebates for the installation of UPS equipment. The CEC offered to compensate municipalities up to 70% of all equipment costs for each UPS system installed within their jurisdiction, which amounted to a maximum of $2,800 rebate per UPS system installation. Staff applied for said grant; however, since amber LED vehicle indications were not installed on the traffic signals at the time of application, Chula Vista qualified for a rebate of only $2,660 per UPS installation. To qualify for a grant rebate, each signalized intersection must meet the CEC minimum criteria for funding, which includes: Page 2, Item -/ Meeting Date 3/25/03 · Intersection average daily traffic · Number of injury accidents per year · ProximityofK12 schools Approach traffic speed of each approach Presence of Emergency Vehicle Preemption Equipment (EVPE) Under the CEC criteria, a total of 106 signalized intersections in Chula Vista qualified for grant rebate. In order to fully utilize equipment savings, Phase II was advertised to install city- furnished LIPS equipment and amber LED vehicle indications at all 106 signalized intersections that qualified for a grant reimbursement. In December 2002, staff advertised Phase II of this project exclusively for the labor necessary to install city-furnished UPS systems at 106 signalized intersections throughout the city. On January 8, 2003, staff opened three bid submittals for this phase and determined that HMS Construction was the apparent low bidder with a total bid of $91,345.00. TDS Engineering and T & M Electric submitted higher bids of $95,332.00 and $117,410.00, respectively. Pumhase of the equipment and administration costs for this phase of the project is expected to be approximately $753,000. In order to complete this project, staff would need to ask Council for an additional appropriation of $577,000 into the project account, which would fi'ont all purchases of equipment and contract costs. Upon completion of this project, the City would receive a grant rebate from the CEC in the amount of approximately $282,000. A breakdown of Phase II costs for 106 intersections is listed below: PHASE Il COSTS (106 TRAFFIC SIGNALS) Equipment $690,000 Labor (+) $91,345 Administration (+) $62,655 Although LIPS equipment does not incur any additional electrical costs with the traffic signal operation, battery replacement is required every 3 years. At a cost of $1,000 per intersection (which includes battery replacement and labor costs), the city is facing an additional $106,000 expense for maintenance every 3 years, or a $35,333 expense for 1/3 of the battery replacements each year. Currently, the operations and maintenance budget is allotted $67,875 each year for the maintenance of 173 traffic signals and approximately 7,400 streetlights throughout the city. In order to replace 1/3 of the UPS batteries each year, an additional $35,333 must be added into the maintenance budget in order to cover this additional expense. Due to recent shortfalls to both State and City budgets, staff does not believe that the $295,000 net appropriation and the Page 3, Item ~ Meeting Date 3/25/03 additional maintenance costs are financially sustainable; therefore, in order to maximize benefits and minimize capital and maintenance Costs, staff is requesting that Council reject all bids pertaining to Phase [I of this project and allow staff to m-advertise this phase by May 2003 to include a reduced scope of work. By reducing the number of UPS system installations, staffwill be able to complete this project with minimal net appropriations imo the project account and minimal additional maintenance costs for battery replacement, while still improving motorist safety at the critical traffic signal locations throughout the city. FISCAL IMPACT: The City has already realized an operation cost savings of up to $80,000 per year for installing LED pedestrian indications as part of Phase I of this project. For each qualifying traffic signal upgraded with Battery Backup System equipment, the City will receive a rebate of $2,660. Any rebates received from the CEC will be returned to the identified fimding source following completion all construction. Periodic maintenance includes battery replacement every three years at a cost of $1,000 per UPS system. J:~EngqneerXAOENDA\TF293_RejectBids(2)~cm.doc RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REJECTING BIDS FOR THE "INSTALLATION OF UNINTERRUPTIBLE POWER SUPPLY (UPS) SYSTEMS ON VARIOUS TRAFFIC SIGNALS IN THE CITY OF CHULA VISTA - PHASE II" (TF293) WHEREAS, on January 8, 2003, the City Engineer received sealed bids from three electrical contractors for the Installation of Uninterruptible Power Supply (UPS) System - Phase II (TF293); and WHEREAS, upon further financial analysis of the project and in the best imerest of the City, staff recommends that all bids be rejected and that staff be directed to rebid this project utilizing a reduced scope of work. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby reject bids for the "Installation of Uninterruptible Powers Supply (UPS) Systems on Various Traffic Signals in the City of Chula vista- Phase II".TF293). BE IT FURTHER RESOLVED that staffis hereby directed to rebid the project utilizing a reduced scope of work. Presented by Approved as to form by Clifford Swanson Director of Engineering City Attorney J:/attomey/reso/hid rcjoct UPS COUNCIL AGENDA STATEMENT Item ¢ Meeting Date 3/25/03 ITEM TITLE: A) Resolution Authorizing the City Attorney and Director of Engineering to Develop and execute an Agreement for Termination of Contract due to Infeasibility of Construction for the "Corrugated Metal Pipe (CMP) Rehabilitation along Fifth Avenue between Westby Street and the Telegraph Canyon Channel in the City of Chula Vista, CA (DR-137)' Project, which was awarded to National Liner West, a Division of ZZ Liner, Inc. on November 5, 2002 by City Council Resolution No. 2002-424 SUBMITTED BY: REVIEWED BY: B) Resolution Deeming emergency work to be of "Urgent Necessity", approving the Expenditure of Funds for the "Emergency Storm Drain Repair Along Fifth Avenue between Westby Street and the Telegraph Canyon Channel" Project by the Director of Engineering, ratifying the actions of the City Manager and Director of Engineering for making and executing a contract for said emergency repair with MJC Construction in the amount of $105,000 Director of Engineering~ g ~ X City Manager w ~ (4/5tbs Vote: Yes No_) On November 5, 2002, City Council approved Resolution No. 2002-424 for the Corrugated Metal Pipe (CMP) Rehabilitation along Fifth Avenue between Westby Street and Telegraph Canyon Channel, in the City of Chula Vista, CA (DR-137). This project provides for the rehabilitation of exisfmg corrugated metal pipe (CMP) by replacing certain sections and then lining the entire pipe. Upon videotaping the CMP, the contractor determined that the pipe had partially failed and was in imminent danger of further collapse and that lining the pipe is no longer feasible. Therefore, the contractor agreed to discontinue work on the contract and staff solicited three informal bids for emergency replacement of the pipe. The lowest bid received was $105,000 from MJC Construction. MJC Construction was authorized by the Director of Engineering to proceed with the emergency replacement. The proposed resolutions would allow the City to terminate the existing contract with National Liner West, deem the work for the emergency replacement of the pipe to be of urgent necessity, and would ratify emergency actions taken by the City Manager and Director of Engineering to replace the badly deteriorated CMP. RECOMMENDATION: A) That Council authorize the City Attorney and Director of Engineering to develop and execute an agreement for termination of contract due to infeasibility of construction for the "Corrugated Metal Pipe (CMP) Rehabilitation Along Fifth Avenue between Westby Street and the Telegraph Canyon Channel in the City of Chula Vista, CA (DR-137)". B) That Council deem emergency work to be of "Urgent Necessity", approve the expenditure of funds for the "Emergency Storm Drain Repair along Fifth Avenue between Westhy Street and the Telegraph Canyon Channel" project by the Director of Engineering and ratify the actions of the City Manager and the Director of Engineering for making and executing a contract for said Emergency Repair with MJC Construction in the amount of $105,000. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. Page 2, Item ~ Meeting Date 3/25/03 DISCUSSION: On February 17, 2003, the contractor submitted a videotape of the present condition of the existing CMP on the DR-137 project for staWs review. The condition of the storm drain is of such nature that the video camera could only move approximately 12 feet into the pipe before it had to be retrieved. The bottom of the CMP had corroded away and a good portion of the middle of the pipe was equally corroded, thereby leading to partial collapse. The contractor had similar results at the other end of the pipe. Therefore, the existing CMP cannot be lined or spot repaired at all due to extensive corrosion and collapse. National Liner West is in agreement with staff that the needed scope of work for this storm drain is to install a new storm drain along a new alignment in the street and slurry backfill the existing line so as to prevent any occurrence ora sinkhole in the future. National Liner West has submitted the attached letter to the City requesting that they be released from this contract and reimbursed for expenses that they have incurred to date. Staff has consulted with the City Attorney's Office and the Purchasing Agent and they concur with the termination of National Liner West's contract and the emergency replacement of the existing CMP. The City Attorney's Office will draw up an agreement between the City and National Liner West to terminate their contract. The proposed Resolution would allow the City Attorney and the Director of Engineering to develop and expedite said agreement. Based upon the urgent necessity for the preservation of life, health and property, staff solicited the following three informal bids to install a new storm drain within a new alignment in the street and to slurry backfill the existing CMP, which is under the sidewalk. Bidder #1: MJC Construction, Chula Vista = $105,000 (includes all costs) Bidder #2: Cass Construction, Inc., E1Cajon = $136,633 (extra cost for bonds, surveying & testing not included in this price) Bidder #3: TC Construction - Did not respond Funds in the DR-137 project account are sufficient to pay for this emergency work. The City Manager and the Director of Engineering authorized MJC Construction to proceed with the emergency repair for the following reasons: · It will mitigate a potential total collapse of the existing CMP due to ensuing rain storms which could cause serious damage to health and property · It will minimize public inconvenience and safety hazards to the general public · It will have minimal impact on the community FISCAL IMPACT: Funds in the DR-137 project account are sufficient to complete the emergency repairs. Attachment: National Liner West letter J:\engineer\agenda\DR 137A 113term. doc 03./12/o3 31013~g-BB4~ March 12, 2003 MarW Phillips Civil Engineer City of Chula Vista 1800 Maxell Read Chula Vis{a. CA 91911 SOUTI ST PIPELENE AND TRENCI LESS CORP. L~.ema~e 773862-A 539 West 1,40~ SIa.~-~ 're[a: (619) 397-6090 Fax: (617) 397-6254 Re: Corrugated Ma[al Pipe Rahab Fifth Ave, DR-137 Dear Mr Phillips: W/e attempted to pre-video the culvert on F~ilth AvenUe between Westby Street and Telegraph Canyon Channel and were unable to video mare than 12 feet from either end of the pipe due to the deterloretadl condition of the pipe. In our opinion this shallow line ahmJld be dug up and replaced ver~ee relined. We ere requesting that you relieve us of the obligation to lin~ Re pipe. Please see the attached invoice for alt costs in~;urred. if you have any queaUofls, please call me. Respectfully submitted. Sc)uthweat Pipeline alld Trenchless Corp. Mark Chapin / Projeot'~leneger Attachment; SOLD TO: ; City Of Chula Vista 276 &th Ave. Chula V ~a, Ca. g1810-~631 5141PPEO TO: City ~ Chula Vista U-LINER WEST Trenehle~a Plpellfle Recons'~ur~on LIc~nee No, A-~69620 I/ OICE INVOICE NUMBER 2Dg-0,1 INVOICE DATE PROJI=cT Rahab CMP along 5th Ave. JCl) CANCELLED T~RMS Net 3(3 days CONTRACT ldo DR-q3? Work performed on Job DR-13?, Rehmbll#i~on M CMP alor~g Filth Avenue In the airy ~f Chull V~M'M. JDb W enn=elkld, 13,0 Rag Hours 5, D R~g Hours 5,0 Rag Hours §.0 Rag Hour~ a.o Rag Houc~ 20% ~.Nerey - Orp I Foreman 28,18 18.10 40.:~? 002.61 ~.ChsV~ - ~p II Dd~r 1g.~ 11.eS 30.2t t51 E, Humn~p I Labo~ 14,61 9,~ 24.~ ~20,20 J.L~ II ~borer 17.~ 11,57 ~,51 ~O.OB 8.B~St~ II ~ 17, 94 11.~ 29, 51 ~6.08 P~ Gre~book Lair ~-up 1,~6,~ 2~.24 20.5 Reg Hours M.Chepin-Projeee Manager 44.03 919.0~ 5 0 Hrs UL10 - UtilitY Tru=k 12.60 63.00 5 0 Nm 'FV3 - CCTV Tme~ 75.00 375,00 8.0 Hrs TV - CCTV Truok 75.00 800.00 13.0 Hfs J4 - Jst Ttu~k 7'5.00 0?5.00 8.0 Hfs SW10 - Utility TeUck 12.60 100.BO 15% Equipment Mark-up 2,113.80 317. 07 Empleyee HouslnglSubsisflanoe UtilitieelLq/ater Meter) Delivery See~lce(UP$) Sub~Contrac~er~NaUo~.l Plant Sewiom) E~oP.d E~laenee(Aoh Risk Se~es) Questions aOneerning this Call; Chris D_ Scerr~t 310132g-flT~ SUE[TOTAL MAKE ALL CHECK=: PAYABI.~; TO: ~o~r PIPELINE AND TRENCHLF_~ C, ORP (Fotmedy ZZ LINER, INC.) 116.00 3.25 1,202.0o RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY ATTORNEY AND D1RECTOR OF ENGINEERING TO DEVELOP AND EXECUTE AN AGREEMENT FOR TERMINATION OF CONTILACT DUE TO INFEASIBILITY OF CONSTRUCTION FOR THE "CORRUGATED METAL PIPE (CMP) REHABILITATION ALONG FIFTH AVENUE BETWEEN WESTBY STREET AND THE TELEGRAPH CANYON CHANNEL 1N THE CITY OF CHULA VISTA, CA. (DR-137)" PROJECT, WHICH WAS AWARDED TO NATIONAL LINER WEST, A D1VISION OF ZZ LINER, INC. ON NOVEMBER 5, 2002 BY CITY COUNCIL RESOLUTION NO. 2002-424 WHEREAS, on November 5, 2002, City Council approved Resolution No. 2002- 424 for the Corrugated Metal Pipe (CMP) Rehabilitation along Fifth Avenue between Westby Street and Telegraph Canyon Channel, in the City of Chula Vista, CA (DR-137) which project provides for the rehabilitation of existing corrugated metal pipe (CMP) by replacing certain sections and then lining the entire pipe; and WHEREAS, upon videotaping the CMP, the contractor determined that the pipe had partially failed and was in imminent danger of further collapse and that lining the pipe is no longer feasible; and WHEREAS, the existing CMP cannot be lined or spot repaired at all due to extensive corrosion and collapse; and WHEREAS, National Liner West is in agreement with staff that the needed scope of work for this storm drain is to install a new storm drain along a new alignment in the street and slurry backfill the existing line so as to prevent any occurrence of a sinkhole in the future; and WHEREAS, National Liner West has submitted a letter to the City requesting that they be released from this contract and reimbursed for expenses that they have incurred to date; and WHEREAS, staff has consulted with the City Attorney's Office and the Purchasing Agent and they concur with the termination of NationaI Liner West's contract and the emergency replacement of the existing CMP; and WHEREAS, the City Attorney's Office will draw up an agreement between the City and National Liner West to terminate their contract and Council's action will allow the City Attorney and the Director of Engineering to develop and expedite said agreement. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize the City Attorney and Director of Engineering to develop and execute an Agreement for Termination of Contract due to infeasibility of construction for the "Corrugated Metal Pipe (CMP) Rehabilitation along Fifth Avenue between Westby Street and the Telegraph Canyon Channel in the City of Chula Vista, CA (DR-137) Project which was awarded to National Liner West, a Division of ZZ Liner, Inc. on November 5, 2002 by City Council Resolution No. 2002-424. Presented by Approved as to form by Clifford Swanson Director of Engineering J:\Attorney\RESO\Emergency Storm Drain Repair Fir2h Avenue Termination RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DEEMING EMERGENCY WORK TO BE OF "UROENT NECESSITY", APPROVING THE EXPENDITURE OF FUNDS FOR THE "EMERGENCY STORM DRAIN REPAIR ALONG FiFTH AVENUE BETWEEN WESTBY STREET AND THE TELEGRAPH CANYON CHANNEL" PROJECT BY THE DIRECTOR OF ENGINEERING, RATlleYING THE ACTIONS OF THE CITY MANAGER AND DIRECTOR OF ENGINEERING FOR MAKING AND EXECUTING A CONTRACT FOR SAID EMERGENCY REPAIR WITH MJC CONSTRUCTION IN THE AMOUNT OF $105,000 WHEREAS, on November 5, 2002, City Council approved Resolution No. 2002- 424 for the Corrugated Metal Pipe (CMP) Rehabilitation along Fifth Avenue between Westby Street and Telegraph Canyon Channel, in the City of Chula Vista, CA (DR-137) which project provides for the rehabilitation of existing corrugated metal pipe (CMP) by replacing certain sections and then lining the entire pipe; and WHEREAS, upon videotaping the CMP, the contractor determined that the pipe had partially failed and was in imminent danger of further collapse and that lining the pipe is no longer feasible; and WHEREAS, the contractor agreed to discontinue work on the contract and staff solicited three informal bids for emergency replacement of the pipe; and WHEREAS, the lowest bid received was $105,000 from MJC Construction; and WHEREAS, MJC Construction was authorized by the Director of Engineering to proceed with the emergency replacement. WHEREAS, therefore, staff undertook emergency measures, as provided in Section 1009 of the City Charter, to repair the pipes in order to protect the roadway and the general public. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby deem emergency work to be of "Urgent Necessity'"' and approve the expenditure of funds for the "Emergency Storm Drain Repair along Fifth Avenue between Westby Street and the Telegraph Canyon Channel" project by the Director of Engineering. BE IT FURTHER RESOLVED that the City Council does hereby ratify the actions of the City Manager and the Director of Engineering for making and executing a contract for said Emergency Repair with MJC Construction in the amount of $105,000. Presented by Approved as to form by Clifford Swanson Director of Engineering Ann Moore City Attorney J:\Attorney\RESO\Emergency Storm Drain Repair Fifth Avenue COUNCIL AGENDA STATEMENT Item ~z Meeting Date 3/25/03 ITEM TITLE: SUBMITTED BY: REVIEWED BY: Resolution of the City Council of the City of Chula Vista, California, declaring its intention to consider changes and Modification to the special tax rates within Community Facilities District No. 08M (McMillin Otay Ranch Village 6) Improvement Area No. 1. Director of Engineerin~¢~ City Manager ~'~ (4/5ths Vote: Yes__ No~X ) McMillin Otay Ranch has requested the City conduct proceedings to consider changes and modifications to Improvement Area No. 1 of Community Facilities District No. 08M (Village 6) (CFD 08M). CFD 08M was formed in 2002 to fund the perpetual operation and maintenance of slopes, medians and parkways and storm water treatment facilities associated with Village 6. The City has retained the services of MuniFinancial as special tax consultant and Best, Best and Krieger LLP as legal counsel to provide assistance during the proceedings. Tonight's action will initiate the formal proceedings to consider the change and modification to CFD No. 0SM, Improvement Area No.1. RECOMMENDATION: That Council approve the resolution declaring the intention to consider changes and modifications to the special tax rates of Commtmity Facilities District No. 08M, Improvement Area No. 1. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In 2002, Council formed Community Facilities District No. 08M (Village 6). CFD 08M is divided into two Improvement Areas, Improvement Area No. 1 (McMillin) and Improvement Area No. 2 (Otay Ranch Company). Changes to the special tax rates are only being requested for Improvement Area 1. Area of Benefit CFD No. 08M, Improvement Area No. 1, encompass parcels located within the Village 6 owned by McMillin Otay Ranch LLC. McMillin Otay Ranch is proposed to contain approximately 482 single-family detached homes, 212 multi-family units, a private high Page 2, Item ~ Meeting Date 3/25/03 school on approximately 38 acres and a church on approximately 13.2 acres of Conununity Purpose Facility ("CPF") property. Proposed Special Tax CFD 08M has four proposed categories of taxation, as follows: Developed Parcels (Single Family and Multi-Family Residences) are taxed based on the square footage of the structure. Commercial Parcels are taxed on the acreage of the parcel. · The Final Mapped properties which include all single family residential parcels for which a building permit has not been issued are taxed on acreage of the parcel. · Property not categorized as Developed or Final Mapped Property is taxed on acreage of the parcel. · The Exempt Category includes all publicly owned parcels and Homeowner's Association parcels. Developed Parcels are those parcels for which a building permit has been issued. The proposed maximum special tax rate in the RMA was determined at the time of formation of CFD 08M in 2002. McMillin has requested the special tax rates be modified to more closely match the benefit received from the improvements. This modification will reduce the special tax rate per acre for the high school/church site (which is in the Non- Residential special tax category) as they do not benefit from the in-tract landscaping that will be maintained by the CFD. The Residential special tax rate is proposed to increase to reflect the increased benefit Residential property receives from the in-tract maintenance. The developed Multi-family tax rate is proposed to remain the same. Collection of Taxes At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability (budget plus reserve) of each Improvement Area. Then, the special taxes will first be levied on the Developed Parcels. If this pool of flmds is not enough to fund the Special Tax Liability, as may be the case in the early years of development, the district will levy the special tax on the undeveloped land starting with Final Mapped Property. The buffer of having the undeveloped land covering any portion of the Special Tax Liability not funded from special taxes levied on Developed Parcels will disappear once the area has been fully developed. If the Special Tax Liability for any fiscal year is less than the maximum special tax authorized to be levied on the Developed Parcels, the actual rate of the special taxes to be levied in that specific year will be reduced accordingly. Page 3, Item G Meeting Date 3/25/03 Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes": (See Exhibit "A" for full description of RMA) · The Maximum Special Tax Rates increase each year by the annual percentage change in the Consumer Price Index. The RMA provides that the annual budget for any year may include an amount deemed necessary to maintain an adequate level of an operating reserve fund. The maximum special tax rates are based on the original budget. If the actual square footage of development meets or exceeds the projections on which the special tax rates were based, the actual special tax rate necessary to be levied annually to fund the Special Tax Liability may be less than the authorized maximum special tax. Proposed Maximum Special Taxes The proposed maximum and current maximum special tax rates for fiscal year 2002/03 for Improvement Area No. 1 ofCFD 08M are as follows: Developed Property: Special Tax Category Residential (per square foot) Multi-Family (per square foot) Non-Residential (per acre) Proposed Current Increase/ Maximum Maximum (Decrease) Special Tax Special Tax $0.35 $0.258 $0.092 $0.28 $0.28 $0.00 $2,188.57 $4,431.89 ($2,243.42) Undeveloped: Special Tax Category SF Residential (per acre) Multi-Family (per acre) Non-Residential (per acre) Proposed Current Increase/ Maximum Maximum Special Tax (Decrease) Special Tax $5,806.46 $4,431.89 $1,374.57 $5,405.42 $4,431.89 $973.53 $2,188.56 $4,431.89 ($2,243.43) Resolutions Them is one resolution on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION OF INTENTION is the jurisdictional resolution declaring the intention of the City Council to consider the proposed special tax rate changes to Page 4, Item ~ Meeting Date 3/25/03 Community Facilities District No. 08M (Village 6), Improvement Area 1, and set the time and place for the public heating. Future Actions The public hearing and consideration of the adoption of a resolution approving the changes and modifications to CFD No. 08M, Improvement Area No. 1 and submitting the authorization for such changes and modifications to the qualified electors are scheduled for the City Council meeting of May 6, 2003 at 4:00 P.M. FISCAL IMPACT: All costs of this modification are being borne by the developer and the on-going administration will be funded entirely by the District. The City will receive the benefit of full cost recovering for staff cost involved in District formation and district administration in perpetuity. J:\Engineer\LANDDEV\CF D's\Village 6 MOR In frasVructure\Clean Al 13 Council agenda ROI draf~ 2.doc RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DECLARING ITS INTENTION TO CONSIDER CHANGES AND MODiFICATIONS TO THE SPECIAL TAXES WITHIN COMMUNITY FACILITIES DISTRICT NO. 0SM IMPROVEMENT AREA NO, 1 WHEREAS, the City Council of the City of Chula Vista, Califomia, (the "City Council") has previously undertaken proceedings to form Community Facilities District No 08M (Village 6, McMillin Otay Ranch and Otay Ranch Company) (the "District"), to designate two improvement areas therein ("Improvement Area No. 1" and "Improvement Area No. 2") and to authorize the levy of special taxes within each Improvement Area pursuant to the provisions of the Mello-Roos Community 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 maintenance of (a) landscaped areas within the public rights-of-ways and other public easements throughout the District and (b) facilities that are directly related to storm water quality control throughout the District; and WHEREAS, the qualified electors of each Improvement Area of the District, voting in a special election held on October 22, 2002, approved the authorization to levy special taxes within each Improvement Area pursuant to a separate rate and method of apportionment of such special taxes for each Improvement Area (the rate and method of apportionment of special taxes approved for Improvement Area No. 1 shall be referred to as the "Existing Improvement Ama No. 1 RMA'); and WHEREAS, subsequent to the formation of the District and such election, McMillin Communities ("McMillin'), the master developer of the property within Improvement Area No. 1 of the District, requested that the City Council, acting as the legislative body of the District, initiate proceedings to modify the Existing Improvement Area No. 1 RMA; and WHEREAS, this City Council desires to initiate such proceedings and to set the time and place for a public hearing on this Resolution. 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. 08M (VILLAGE 6, MCMILLIN OTAY RANCH AND OTAY RANCH COMPANY), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. SECTION 2. DESCRIPTION OF THE AREA TO BE AFFECTED. The area to be affected by the proposed modification, if approved, is all of Improvement Area No. 1 of the District, which is generally described as follows: All property within the boundaries of Improvement Area No. I of Community Facilities District No. 08M (Village 6, McMillin Otay Ranch and Otay Ranch Company), as shown on a map as previously approved by the City Council of the City, such map designated by the name of such District, a copy of which is on file in the office of the City Clerk of the City. SECTION 3. DECLARATION OF INTENTION TO CONSIDER THE MODIFICATION OF THE EXISTING IMPROVEMENT AREA NO. 1 RMA. This City Council hereby declares its intention to consider modifying the Existing Improvement Area No. 1 RMA so that the rate and method of apportionment of special taxes authorized to be levied within Improvement Area No. 1 reads as set forth in Exhibit A attached hereto and incorporated herein by this reference. SECTION 4. PUBLIC HEARING. NOTICE IS HEREBY GIVEN that on May 6, 2003, at the hour of 4 p.m., in the regular meeting place of the City Council, being the Council Chambers located at 276 Fourth Street, Chula Vista, California, the City Council will hold a public hearing to consider this Resolution and to consider the approval of the modification of the Existing Improvement Area No. IRMA. At such time and place all interested persons or taxpayers for or against the approval of the modification of the Existing Improvement Area No. 1 RMA will be heard. At the above-mentioned time and place for public hearing any persons interested, including taxpayers and property owners may appear and be heard. The testimony of all interested persons for or against the modification of the Existing Improvement Area No. 1 RMA will be heard and considered. Any protests may be made orally or in writing. However, any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the city clerk of the city on or before the time fixed for the public heating. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing. If a written majority protest is filed against the modification of the Existing Improvement Area No. IRMA, the proceedings shall be abandoned. SECTION 5. ELECTION. If, following the public hearing described in the Section above, the City Council determines to approve the modification of the Existing Improvement Area No. 1 RMA, the City Council shall then submit the modification to the qualified electors of Improvement Area No. 1 of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within Improvement Area No. 1 for each of the ninety (90) days preceding the close of the public heating, the vote shall be by registered voters of Improvement Area No. 1, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of Improvement Area No. I who were the owners of record at the close of the subject hearing, with each landowners or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within Improvement Area No. 1. SECTION 6. NOTICE OF PUBLIC HEARING. The City Clerk is hereby authorized and directed to give notice of such public hearing by causing a Notice of Public Hearing to be published pursuant to Government Code Section 6061 in a legally designated newspaper of general circulation with such publication to be completed at least seven (7) days prior to the date set for such public hearing. SECTION 7. EFFECTIVE DATE. This Resolution shall become effective immediately upon its adoption. Presented by: Approved as to form by: Clifford Swanson Director of Engineering City Attorney J:\attorneyXreso\CFD 08M Village 6 changes RATE AND METHOD OF APPORTIONMENT COMMUNITY FACILITIES DISTRICT 08M IMPROVEMENT AREA NO. 1 (REVISED) (McMillin Otay Ranch) A Special Tax of Community Fac'flities District No. 08M (Village 6, McMillln Otay Ranch and Otay Ranch Company) of the City of Chnla Vista ("CFD") shall be levied on all Assessor's Parcels in Improvement Area No. 1 of the CFD and collected each Fiscal Year commenc'mg in Fiscal Year 2002-03 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner here'm provided. A. DEFINITIONS The terms here'mafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer IA No. 1 of the CFD as determined by the City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 08M of the City of Chula Vista. MuniFinamckd Page I ci~ o£ C~ vista Correrwity FaciFUies D~trict No. 08M Impmmrm~ Area No. 1 (Revised) "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Residential Property, Multi-Family Property, and Non- Residential Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating single family residential buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Improvement Area No. 1" or "IA No. 1" means Improvement Area No. 1 of the CFD, as identified on the boundary map for the CFD. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped improvements within the public right-of-ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to IA No. 1 for such Fiscal Year. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. MuniFfftartcial Page 2 Cit:y of C~ula Vista Corrvnumty Facilities District No. 08M Imprownv~ Area No. I ~erk~) "Multi-Family Property" means all Assessor's Parcels of Taxable Property intended for use as a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment umts; Specifically such parcels included within R-10 as outlined on the Maintenance Responsibility Map incorporated in the CFD report. "Non-Residential Property" means all Assessor's Parcels of Taxable Property intended for non-residential use; Specifically lots R-11 and CPF-2 as outlined on the Maintenance Responsibility Map incorporated in the CFD report. To the extent that a building permit is issued for another land use then the parcel will be reclassified to the land use specified by the building permit. "Operating Fund" means a fund that shall be maintained for IA No. 1 for each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Other Taxable Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Final Map Property, or Taxable Property Owners Association Property. Other Taxable Property will be further classified as Residential Property, Multi- Family Property or Non-Residential Property. "Property Owner Association Property" means any property within the boundaries IA No. 1 of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the boundaries of IA No. ! of the CFD that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for IA No. 1 for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and ~repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. MuniFinamcial Page 3 City of Chula Vista Facilities District No. 08M Im~ A rea No. I O~evised) "Residential Property" means all Assessor's Parcels of Taxable Property intended for use as one residential dwelling unit; Specifically such parcels included within areas R-l, R-3, R-4, R-6 as outlined on the Maintenance Responsibility Map incorporated in the CFD report. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in IA No. 1 to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for IA No. 1 to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "Square Foot" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property or Multi-Family Property, excluding garages or other structures not used as living space. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout IA No. 1. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to IA No. I for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of IA No. of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax- Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property, or (ih') Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. MuniFinancial Page 4 ci~ of C~ula Vista Facilities District No. 08M ~.4rea No. ~ (Rea. sod) CJ ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within IA No. 1 of the CFD shall be classified as Developed Property, Final Map Property or Undeveloped Properv/, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. Undeveloped Property shall be further assigned to a Land Use Class as specified in Table 2. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 08M Improvement Area No. I Land Use Maximum Class Description Special Tax 1 Residential Property $0.350 per Sq Ft 2 Multi-Family Property $0.258 per Sq Ft 3 Non-Residential Property $2,188.56 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that may be levied on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's shall determine the allocation to each Land Use Class. MuniFinandal Page 5 Corr~tty Facilities District No. 08M Im~ Area No. 1 (Revised) Undeveloped Property TABLE 2 Maximum Special Tax for Undeveloped Property Community Facilities District No. 08M Improvement Area No. I Land Use Class 4 5 6 7 Description Final Map Property Other Taxable Property - Residential Other Taxable Property - Multi-Family Other Taxable Property - Non-Residential Taxable Property Owner Association Property Maximum Special Tax $5,806.46 per Acre $5,806.46 per Acre $5,405.42 per Acre $2,188.56 per Acre $5,806.46 per Acre 3. Annual Escalation of Maximum Special Tax The Maximum Spedal Tax as shown in the tables above that may be levied on each Assessor's Parcel in IA No. 1 shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items). METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2002-03, and for each following Fiscal Year, the Council shall levy the IA No. i Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Spedal Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Final Map Property at up to 100% of the Maximum Special Tax for Final Map Property; MuniFinancial Page6 Cityof Cbu]a Vista Caovrv~y Facilities District No. 08M I, tvwu~,~t~4~ No. 1 3%0 Third: If additional monies are needed to satisfy the Spedal Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Other Taxable Property at up to 100% of the Maximum Special Tax for Other Taxable Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within IA No. 1 of the CFD. EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, and (ii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all taxable Property to less than 128.11 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be classified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. F. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal MuniFinarwial ~ Page 7 City of (7oula Vista Corr~ Facilities District No. 08M 1~,4~ No. 1 (Revi~) 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. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad va/o~ property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of IA No. 1 of the CFD or as otherwise determined appropriate by the CFD Administrator. TERM OF SPECIAL TAX Taxable Property in IA No. 1 of the CFD shall remain subject to the Special Tax in perpetuity. MuniFinancial Page $ Cityof Omla Vista Corrvra~ty Facilities District No. 08M ~ A~ ?qo. ~ (~em~l) COUNCIL AGENDA STATEMENT Item ~ Meeting Date 3/25/03 ITEM TITLE: Resolution of the City Council of the City of Chula Vista, California, of Intention of Consideration to Changes And Modifications to the Rate and Method of Apportionment of Special Taxes Authorized to be Levied Within Improvement Area B of Community Facilities District No. 06-I (Eastlake - Woods, Vistas, and Land Swap), (B) Resolution waiving the consultant selection process and approving the Fourth Amendment to the agreement with McGill Martin Self, Inc., for providing additional Project Management and Special Tax Consultant services for the change and modification of Community Facilities District No. 06-I (EastLake- Woods, Vistas, and Land Swap) and authorizing the Mayor to execute said agreement. (c) Resolution waiving the consultant selection process and approving the Fifth Amendment to the agreement with Best Best & Krieger LLP, for providing additional bond counsel services for the change and modification of Community Facilities District No. 06-I (EastLake- Woods, Vistas, and Land Swap) and authorizing the Mayor to execute said agreement. SUBMITTED BY: Director of Engineering~ REVIEWED BY: City Manager ~ 9 I'/ (4/5tbs Vote: Yes No X ) EastLake Company, LLC has submitted a letter dated January 30, 2003 (Exhibit A) to the City of Chula Vista requesting that the City initiate proceedings for Community Facilities District No. 06-I to consider changes and modifications in the Rate and Method of Apportionment of special taxes for Improvement Area B of such district resulting from the proposed prepayment of the special tax obligation for certain commemial property within Improvement Area B. EastLake Company, LLC has initiated the prepayment process with the City's CFD Administrator. Tonight council will consider (a) declaring the intention to consider approval of changes and modification to the Rate and Method of Apportionment (RMA) for Improvement Area B, and setting the public hearing for this consideration for May 6, 2003, (b) waiving the consultant selection process and approving the Fourth Amendment to the agreement with McGill Martin Self, Inc. for providing additional project management and special tax consultant services for the change and modification of CFD No.06-I, and (c) waiving the consultant selection process and approving the Fifth Amendment to the agreement with Brown Diven Hessell & Brewer LLP for providing additional legal counsel services for the change and modification of CFD No. 06-1. Page 2, Item~____ Meeting Date 3/25/03 RECOMMENDATION: That Council: Approve the Resolution (A) of intention of the City Council to consider approval of changes and modification of the Rate and Method of Apportionment (RMA) for Improvement Area B, and setting the public hearing for May 6, 2003. Adopt the Resolution (B) waiving the consultant selection process and approving the subject Fourth Amendment retaining the finn of McGill Martin Self, Inc. to provide additional project management and special tax consultant services for the change and modification of CFD No. 064. Adopt the Resolution (C) waiving the consultant selection process and approving the subject Fifth Amendment retaining the firm of Best Best & Krieger LLP to provide additional bond counsel services for the change and modification of CFD No. 06-1. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: As noted above the EastLake Company, LLC has notified the City o fits intention to prepay the special tax obligation for 47.94 acres of Commercial Property within Improvement Area B (Land Swap) of CFD No. 06-I. This Commercial Property is located in the southern parcel of the "Land Swap" which includes Assessor Parcel Numbers 643-020-041,643-020-048,643-030-013, and 643-070-005. This prepayment will be computed by the City's CFD Administrator according to the existing Rate and Method of Apportionment of special taxes for Improvement Area B. The prepayment will have the following effects on Improvement Area B: 1) The Assigned Special Tax revenue that may be generated from the levy ofspecial taxes within Improvement Area B will decrease due to the reduction of the Commercial Property revenue as a result of early prepayment; 2) The Taxable net lot acreage, which the Undeveloped Backup Special Tax Rate is based upon, will decrease; 3) The prepaid Commercial Property will be exempt from further taxation for CFD No. 06-1. 4) The Assigned Special Tax Rate for Developed Property within both land use catoregies will not be adjusted and all other provisions will remain in effect. For these masons, the City's financing team and City staff recommend that the existing Rate and Method of Apportiortment of special taxes for Improvement Area B be modified to increase the Backup Special Tax rate applicable to Undeveloped Property. These proposed changes will be reflected within the Amended Rate and Method of Apportionment (Exhibit B) for Improvement Area B only and an Amended Special Tax Report (Exhibit C). The Amended RMA for Improvement Area B will now have two Tax Zones with Zone 3 being the South Parcel's Residential Component and Zone 4 being the Commemial Component of both the North and South Parcel. They will both have the same Assigned Special Tax Rates but a different Undeveloped Backup Special Tax Rate based on their respective acreage, land uses, and Assigned Special Tax Rate. The two Tax Zones are set up to result Page 3, Item ~ Meeting Date 3/25/03 in a mom consistent Backup Special Tax relative to the Assigned Special Tax for all of the Assessor's Parcels within Improvement Area B and to have similar products (e.g. residential, Commercial etc.) pay a similar undeveloped rate. Consultant selection Working within the scope of work of their current agreements and associated amendments, McGill Martin Self, Inc. ("MMS") and Best Best & Krieger LLP ("BB&K") have provided consultant services for CFD 99-1 (Otay Ranch SPA 1), CFD 2000-1 (Sunbow ID, CFD 2001-1 (San Miguel Ranch), CFD 2001-2 (Otay Ranch Village 6), CFD 071 (Village 11), and CFD 061 (Eastlake m- Woods, Vistas, and Land Swap). The two firm's knowledge of the Eastern Territories is extensive and up-to-date. Given their experience and knowledge of the project area, staff believes that MMS and BB&K are in the best position to provide the most accurate change and modification product for CFD 06I (Eastlake 11I- Woods, Vistas, and Land Swap). Therefore, staff recommends that the City's selection process be waived in the interest of providing a consultant team: That have previously provided consultant services to the City pertaining to the formation of CFD 061 (Eastlake- Woods, Vistas, and Land Swap areas), That have demonstrated an ability to work together efficiently on past projects, · That possess extensive knowledge and experience in their respective fields, · That have mastered a unique understanding of the development issues in the City of Chula Vista, · That have proven its credibility with the bond market by providing support to successful bond offerings for existing projects. Given the critical and sensitive nature of each of the elements of a change and modification of CFD No. 06I, staff does not believe that the benefits of embarking on a selection process now will outweigh the risks to the City of trying to offer a modified CFD No. 06I that are supported by documentation fi.om consultants who are unfamiliar with the applicable market and the needs for the City. Fees Estimates McGill Martin Self, Inc. will provide Project Management and Special Tax Consultant services (Exhibit D) associated with the EastLake's request to amend the proceeding of CFD No. 06-1 to allow the prepayment of certain commemial (non-residential) land uses, and proceedings associated with the annexation of a parcel (APN 643-020-056) into Improvement Area B for a total consultant fee of $20,200 on a limitation without further authorization on time and materials arrangement. This proposed modification would adjust the Special Tax Report, the Rate and Method of Apportionment for only Improvement Area B, related tables, spreadsheets, special tax calculations, the Acquisition/Financing Agreement, as well as other documents regarding Improvement Area B only (Land Swap area). Best Best & Krieger LLP will provide legal counsel services (Exhibit E) associated with the EastLake's request to amend the proceeding of CFD No. 06-1 to allow the prepayment of certain commercial (non-residential) land uses, and proceedings associated with the annexation of a parcel Page 4, Item /~J Meeting Date 3/25/03 (APN 643-020-056) into Improvement Area B for a maximum consultant fee of $10,750 on a not-to- exceed limitation on time and materials arrangement. Staff has verified that these fees are in line with levels that the City has previously paid, and has reviewed both proposed amendments and considers them ready for Council approval. The City Attorney has also approved the proposed amendments as to form. Consultant vavments to date The total fees paid to each of these consultants on all City projects (CFD formation and other) over the past twelve months is reported as follows: McGill Martin Self, Inc. total fees paid was $980,765. Most of the fees paid to MMS were for their work on Olympic Parkway, Salt Creek Sewer, Wolf Canyon Sewer, Traffic Enhancement projects, and SR-125 project. The actual fees paid to MMS for CFD related work was $249,557. The total fees paid to Best Best & Krieger LLP was $22,009. Resolutions There are three resolutions on today's agenda that, if adopted, will accomplish the following: The RESOLUTION OF THE CITY COUNCIL of intention to consider changes and modifications to the Rate and Method of Apportionment of special taxes for Improvement Area B for Community Facilities District No. 06-I. The RESOLUTION OF THE CITY COUNCIL of approving the Fourth Amendment to the Agreement with McGill Martin Self, Inc. to provide additional project management and special tax consultant services in connection with the change in proceedings to consider the change and modification of Community Facility District No. 06-I. The RESOLUTION OF THE CITY COUNCIL of approving the Fifth Amendment to the Agreement with Best Best & Krieger LLP to provide additional bond counsel services in connection with the change in proceedings to consider the change and modification of Community Facility District No. 06-I. Future Actions Adoption of tonight's resolutions will set the District's public heating and Special Election for May 6, 2003. The election will follow the public hearing for the landowners to vote on the proposition stated on each of the ballots. Once the votes are cast, Council will be requested to certify the election results on May 6, 2003. Page 5, Item___.~ Meeting Date 3/25/03 FISCAL IMPACT: None, the developer will pay all costs and has deposited additional funds to handle the amendment consultant costs, attorney fees, and City costs in accordance with the approved Reimbursement Agreement. The City will receive the benefit of the full cost recovery for stafftime involved in this proposed change of proceedings and administration activities. Exhibit A: Letter dated January 30, 2003, EastLake Company, LLC Exhibit B: Amended Rate and Method of Apportionment for Improvement Area B Exhibit C: Amended Special Tax Report Attachment A: Original Agreement between the City and McGill Martin Self, Inc. Attachment B: Original Agreement between the City and Best Best & Krieger LLP J:Xengineer~agenda\CAS 34344)3 City revised.doc lanuary 30, 2003 COMPANY, LLC Oivj of Chula Vista Mr. Alex AI-Agha Engineering/Public Works Dcpar~ent 276 Fourth Avenue Chula Vista, CA 91910 VIA FAX RE: EastLake CFD 061 (Woods Vistas and Land Swap) Dear Alex: The EastLake Company intends to prepay tho underlying estimated debt on lhc southerly commercial land swap properly. Our understanding is that early prepay will crcate a need to amend corresponding documents noted below. Please consider this ]offer as Thc EastLakc Company's formal roqucst to init/ate change of proceedings and to aracnd the Rate and Method for Improvement Area "B", the Acquisition and Financing Agrcemem and thc Special Tax Report. Should you have any questions, please do not hcsitat~ to call. Debi Roth~Klingner Vicc President EXHIBIT-.,;~ AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I IMPROVEMENT AREA B (EastLake - "Land Swap") 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. 06-I, Improvement Area B ("Improvement Area B") and collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," and "Undeveloped Property" as described below. All of the Taxable Property in Improvement Area B, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of Improvement Area B 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-06-I or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-06-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-06-I or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD-06-I for any other administrative purposes of Improvement Area B, including, but not limited to City of Chula Vista Community Facilities District No. 06-1, lmprovement Area B EastLake - Land Swap Page I attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of 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 Cotmty Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with Section C. 1.a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Backup 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 by CFD-06-I for Improvement Area B under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year. Unless defined differently in the applicable Indenture. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD-06-1 means City of Chula Vista, Community Facilities District No. 06-I. "City" means the City of Chula Vista. "Commercial Property" means all Assessors' Parcels of Developed Property, for which a building permit(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Community Purpose Facility Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City, acting as the legislative body of CFD-064. City of Chula Vista Community Facilities District No. 06-I, Improvement Area B ~. ~ EastLake - Land Swap 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. "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. "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. "Improvement Area B" means Improvement Area B of CFD No. 06-I known as the "Land Swap". "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 fi.om time to time, and any instrument replacing or supplementing the same. "Land Use Ciass" means any ofthe classes listed in Table 1 of SectionC. "Lot(s)" means an individual legal lot created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. "Master Developer" means the owner of the predominant amount of Undeveloped Property in Improvement Area B. "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. "Outstanding Bonds" mean all Bonds, which remain outstanding as defined in the Indenture. "Property Owner Association Property" means any property within the boundaries of Improvement Area B owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' City of Chula Vista Community Facilities District No. 06-I, Improvement Area B EastLake - Land Swap Page 3 Parcels of Developed Property within Improvement Area B. For 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 within Improvement Area B. "Public Property" means any property within the boundaries of Improvement Area B that is owned by or dedicated to the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessors' Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure. "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 Improvement Area B to: (i) pay annual debt service on all Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD- 06-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property for Improvement Area B; less (vi) 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-06-I, Improvement Area B 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. City of Chula I~ista Community Facilities District No. 06-1, Improvement/lrea B I'~ _ ] 0 EastLake - Land Swap Page 4 "Zone 3" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone 4" means a specific geographic area as depicted in Exhibit A attached hereto. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within, Improvement Area B shall be (a) categorized as being located in either Zone 3 or Zone 4, (b) classified as Developed Property or Undeveloped Property and (c) shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed Property shall then be classified as Residential or Commercial Property. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Commercial Property shall be the greater of (1) the Assigned Special Tax described in Table 1 below or (2) the Backup Special Tax computed pursuant to b. below. a. Assigned Soecial Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. TABLE 1 Assigned Special Tax for Developed Property within Zone 3 and Zone 4 Land Use Class Description 1 Residential Property Commercial Property Assigned Special Tax $0.74 per square foot of Residential Floor Area $6,000 per Acre b. Backuo Soecial Tax When a Final Subdivision Map is recorded within Zone 3 or Zone 4, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Commercial Property shall be determined as follows: City of Chula Vista Community Facilities District No. 06-I, ,mprovement Area B Ii EastLake - Land Swap Page 5 For each Assessor's Pamel of Residential Property or for each Assessor's Parcel of 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 3 $20,563 x A L Zone 4 $6,667 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 Commercial Property or for each Assessor's Parcel of Undeveloped Property to be classified as Commercial Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $20,563 for Zone 3 and $6,667 for Zone 4 by the total Acreage of each Assessor's Parcels of the Commercial Property and Undeveloped Property to be classified as Commercial Property within the Final Subdivision Map area. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Commercial 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 Parcels shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 6 Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel classified, as Undeveloped Property shall be $20,563 per Acre for Zone 3 and $6,667 per Acre for Zone 4. 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 each Assessor's Parcel of Developed Property within Zone 3 and Zone 4 at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. ~Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within Zone 3 and Zone 4, excluding any Assessor's Parcels classified as Undeveloped Property pursuant to Section E, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately fi.om the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel classified as Undeveloped Property pursuant to Section E 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 mom than ten percent per year as a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel. City of Chula Vista Community Facilities District No, 06-1, Improvement Area B EastLake - Land Swap Page 7 E. EXEMPTIONS The CFD Administrator shall classify the following Assessor Parcel(s) as exempt property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4. Assessor's Parcels which cannot be classified as exempt property because such classification would reduce the Acreage of all Taxable Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4 will be classified as Undeveloped Property and shall be taxed as such. Tax-exempt status for pttrposes 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 cannot be classified as exempt property as described in paragraph 1 of Section F shall be prepaid in full by the seller pursuant to Section 1.1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still 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-06-I and 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. CommunityCity of Chula Vista Improvement Facilities District No. 06-1, Area EastLake - Land Swap Page 8 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-06-I, Improvement Area B 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- 06-1 Improvement Area B. "CFD Public Facilities Costs" means either $12.3 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) bom the proceeds of all previously issued Bonds, (ii) fi.om interest earnings on the Construction Fund actually eamed prior to the date of prepayment and (iii) directly fi-om 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. City of Chula Vista Community Facilities District No. 06-L Improvement Area B EastLake - Land Swap Page 9 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 Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, 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 mount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this figure. The Prepayment Amount (defined below) shall be calculated as sunu~arized 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 Assessor's Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the sum of the total expected Maximum Annual Special Tax revenues which may he levied within Improvement Area B excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. City of Chula Vista Community Facilities District No. 06-L Improvement Area B EastLake - Land Swap Page 10 10. Multiply the quotient computed pursuant to paragraph 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 paragraph 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). If all the Bonds authorized to be issued for Improvement Area B have not been issued, compute the Future Facilities Costs. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 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 fi.om 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-06-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"). 11. 12. 13. 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, fi.om the date of prepayment until the redemption date for the outstanding bonds to be redeemed with the prepayment. Add the amounts computed pursuant to paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 11 (the "Defeasance Amount"). 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. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B ' ~ - [ ' ~ EastLake - Land Swap Page 11 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 paragraph 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 paragraphs 3, 4, 6, 10, and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 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 paragraph 10 shall be retained by CFD-06-I. The amount computed pursuant to paragraph 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 paragraph 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 Improvement Area B both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued City of Chula Vista Comtnunity Facdities District No. 06-1, lmprovement Area B ~ ~ lq EastLake - Land Swap Page 12 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 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-06-I, Improvement Area B 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 2043-2044 Fiscal Year. City of Chula Vista Community Facilities District No. O6-1, lmprovement Area B EastLake - Land Swap Page 13 COMMUNITY FACILITIES DISTRICT MELLO-ROOS COMMUNITY FACILITIES ACT 1982 AMENDED SPECIAL TAX REPORT COMMUNITY FACILITIES DISTRICT NO. 06-I IMPROVEMENT AREAS A AND B EASTLAKE-WOODS, VISTAS AND LAND SWAP For the City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 CIIY OF CHUIA VISIA Prepared by McGill Martin Self, Inc. 344 F Street Suite 100 Chula Vista, California 91910 August 27, 2002 Revised February 11, 2003 TABLE OFCONTENTS Page I. INTRODUCTION ................................................................................. 1 II. PROJECT DESCRIPTION ......................................................................... 2-4 III. DESCRIPTION ,~d~lD ESTIMATED COST OF PROPOSED FACILITIES ........................ 4 A. Description of Proposed Public Improvements ................................... 4-5 B. Estimated Cost of Proposed Public Improvements .............................. 5-6 IV. BONDED I~a)EBTEDNESS ~D INCIDENT~m EXPENSES .................................... 6 A. Projected Bond Sales ............................................................... 6 B. Incidental Bond Issuance Expenses to be Included in the Proposed Bonded Indebtedness ......................................................................... 6 C. Incidental Expenses to be Included in the Annual Levy of Special Taxes. 7 V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX ..................... 7 A. Explanation for Special Tax Apportionment .................................... 7-8 B. Assigned Special Tax Rates ....................................................... 9 C. Backup Special Tax ................................................................ 9 D. Accuracy of Information ........................................................... 9 VI. BOUNOARIES OF COMMUNITY FACILITIES DISTRICT .................................. 9 VII. GENERAL TERMS AND CONDITIONS ....................................................... 9 A. Substitution Facilities .............................................................. 9- B. Interim Transportation Facilities .................................................. 9 C. Appeals .............................................................................. 10 EXItlBITS Exhibit A Exhibit B-1 Exhibit B-2 Exhibit C Amended Recorded Boundary Map Rate and Method of Apportionment - Improvement Area A Amended Rate and Method of Apportionment - Improvement Area B Assigned Maximum Special Tax Rates 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. 06-I (EastLake-Woods, Vistas and Land Swap) shall hereinafter be referred to as: "CFD No. 06-I"; and WHEREAS, the Resolution Ordering and Directing the Preparation of a Report for Proposed Community Facilities District No. 06-I (EastLake-Woods, Vistas and Land Swap) 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, Cliff Swanson P.E., the Director of Engineering 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. 06-1 EastLake-Woods, Vistas and Land Swap Page 1 August 2002 Revised February 2003 II. PROJECT DESCRIPTION This Community Facilities District No. 06-I (CFD No. 06-I) encompasses approximately 879.73 gross acres of land located in the portion of the south San Diego City of Chula Vista known as "EastLake- Woods, Vistas and Land Swap". Refer to Exhibit A - for a reduced copy of the Amended Recorded Boundary Map. Of this acreage, approximately 486.7 acres is expected to be developed by several merchant builders for residential and commercial development, 12.9 acres for Community Facilities, 16.85 for parks, 40.81 for schools, .84 acres for a fire station. This Commtmity Facilities District (CFD No. 06-I) is divided into two separate areas, Improvement Area A and Improvement Area B. Imorovement Area A Improvement Area A consists of approximately 737.10 gross acres of land in CFD No. 06-I. Improvement Area A is divided into two zones, mainly for Special Tax purposes. The Vistas comprises Zone 1 and the Woods comprises Zone 2. Vistas (Zone 1) The Vistas (Zone 1) is bound by Otay Lakes Road to the north and Wueste to the east. Zone 1 has 171.41 acres designated for residential housing space. Davidson, RWR, Fieldstone, Cornerstone, William Lyon and Western Pacific have closed on certain Planning Areas within Zone 1. Davidson has purchased Planning Area VR-3 and will build approximately 116 single- detached units, RWR has purchased Planning Area VR- 4 and will build approximately 82 single-family detached homes, Fieldstone has purchased Planning Area VR-5 and VR-6A and will build approximately 93 single-family detached units, William Lyon has purchased Planning Area VR-9 and VR-11 and will build approximately 162 single-family detached units, Cornerstone has purchased Planning Area VR-8 and will build approximately 168 single-family detached units and Western Pacific has purchased Planning Area VR-10 and will build approximately 111 single family attached units. The remaining single-family detached product will be built as part of Planning Areas VR-1, VR- 2, VR-6b, VR-7, and remaining multi-family product will be part of VR-12. These Planning Areas are anticipated to be sold over the next 24 to 36 months. These residential lots will be sold to other memhant builders and will proceed with construction of the units on their own timefi'ame. At build-out, it is expected that the Vistas (Zone 1) will consist of approximately 934 Single Family Detached Units, 111 Single Family Attached Units, 300 multi-family units, a 10 acre commercial development, a 19 acre proposed hotel site, a 13.39 acre Park site, 12.9 acres for Community Facilities. The Single Family Uses are anticipated to generate approximately 2,846,379 square feet of residential building square footage. The total taxable acreage for this improvement area including the 10% contingency factor is approximately 180 acres. Community Facilities District No. 06-1 EastLake-Woods, Vistas and Land Swap Page 2 August 2002 Revised February 2003 Woods (Zone 2) The Woods (Zone 2) is bound by Otay Lakes Road to the south with Hunte Parkway meandering north almost bisecting the area. Zone 2 has 184.70 acres designated for residential housing. Colrich, Continental and Cornerstone have closed on certain Planning Areas. Colrich has purchased Planning Area WR-3 and will build approximately 77 single-detached units, Continental has purchased Planning Area WR- 4 and will build approximately 73 single-family detached homes Cornerstone has purchased Planning Area WR-6 and WR-7 and will build approximately 255 single-family detached units. The remaining single-family detached product will be built as part of Planning Areas WR-1, WR-2 and WR-5. These single-family lots will be sold to other merchant builders and will proceed with construction of the units on their own timeframe. At bnild-out, it is expected that the Woods (Zone 2) will consist of approximately 663 Single Family Detached Units, a 3 acre Park site, 40.81 acres for a school and .84 acres for a fire station. The Single Family Uses are anticipated to generate approximately 1,840,714 square feet of residential building square footage. The total taxable acreage for this improvement area less a 10% contingency factor is approximately 166 acres. Special taxes for CFD No. 06-1 (EastLake-Vistas, Woods and Land Swap) Improvement Area A for the Vistas (Zone 1) and the Woods (Zone 2) shall be levied to Taxable Property to satisfy the Special Tax Requirement as follows: · First, to Developed Property up to the Maximum Annual Special Tax; · Second, if necessary, to Undeveloped Property up to the Maximum Annual Special Tax for Undeveloped Property; · Third, if necessary, Maximum Annual Special Tax derived by the application of the Backup Special Tax increased proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax ,and; · Fourth, if necessary, Special Tax increased proportionately, to Undeveloped Property pursuant to Section E of Exhibit B-1 up to the Maximum Annual Special Tax for Undeveloped Property. Imorovement Area B Improvement Area B ("Land Swap") consists of approximately 143 gross acres. The "Land Swap" is actually two non-adjacent areas; 1) is the northernmost area being a triangular shaped west of EastLake Parkway bound by Otay Lakes Road to the north, and 2) the southernmost area is bound to the south by Olympic Parkway with EastLake Parkway projecting north just west of the center of the area. Of this acreage, approximately 41 acres is designated for residential housing which is in Zone 3 and 58 acres is proposed for a commercial use which is in Zone 4. Zone 4 currently has approximately 47.94 acres of commercial property which is proposed to have the Special Tax Community Facilities District No. 06-1 EastLake-Woods, Vistas and Land Swap Page 3 August 2002 Revised February 2003 prepaid and the Special Tax obligation satisfied as soon as the prepayment is completed. This will result in there not being an Annual Special Tax levied on the 47.94 acres of Commercial Property in Zone 4. At build-out, in Zone 3, it is expected that there will be a mixture of approximately 750 Attached and Multi Family Units. In Zone 4 there will also be an approximately 58 Acres of commercial development. The total taxable acreage for this improvement area less a 10% contingency factor is 89 acres. The proposed Special taxes for CFD No. 06-1 (EastLake-Vistas, Woods and Land Swap) Improvement Area B shall be levied to Taxable Property to satisfy the Special Tax Requirement as follows: · First, to Developed Property up to the Maximum Annual Special Tax; · Second, if necessary, to Undeveloped Property up to the Maximum Annual Special Tax for Undeveloped Property; · Third, if necessary, Maximum Annual Special Tax derived by the application of the Backup Special Tax increased proportionately from the Assigned Special Tax up to the Maximum Annual Special Tax and · Fourth, if necessary, Special Tax increased proportionately, to Undeveloped Property pursuant to Section E of Exhibit B-2 up to the Maximum Annual Special Tax for Undeveloped Property. Ill. DESCRIPTION AND ESTIMATED COST OF PROPOSED FACILITIES A. Descril~tion of Prol~osed Public Imorovements A community facilities district may provide for the pumhase, construction, expansion, or rehabilitation of any real or tangible property, including public facilities and infrastructure improvements with an estimated useful life of five (5) years or longer, which is necessary to meet increased demands placed upon local agencies as a result of development or rehabilitation occurring within the community facilities district. In addition, a community facilities district may pay in full all amounts necessary to eliminate any fixed special assessment liens or to pay, repay, or defease any obligation to pay or any indebtedness secured by any tax, fee, charge, or assessment levied within the area of the community facilities district. The facilities described in this Report are all facilities which the legislative body creating CFD No. 06-1 is authorized to own, construct, or finance, and which are required, in part, to adequately meet the needs of CFD No. 06-I. 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 No. 06-I. Because the actual needs of CFD No. 06-1 arising as development progresses therein may differ from those currently anticipated, CFD No. 06- Community Facilities District No. 06-1 Page 4 EastLal~e Woods. t/istas and Land Swap August 2002 Revised February 2003 I reserves the right to modify the actual facilities proposed herein to the extent CFD No. 06-1 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 apportioned as described in the Rate and Method of Apportionment (RMA) of the Special Tax for CFD No. 06-1 Improvement Area A (Exhibit B-I) and the Amended Rate and Method of Apportionment (RMA) for CFD No. 06-1 Improvement Area B (Exhibit B-2). Proceeds of the proposed bonded indebtedness of CFD No. 06-1 will be used to finance backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, utilities, etc.), public facilities DP Improvements and Traffic Enhancement Facilities. Following is a general description of the proposed facilities: · E. Olympic Parkway · W. Olympic Parkway · Otay Lakes Road · EastLake Parkway · Hunte Parkway · Proctor Valley Road · Telegraph Canyon Road · Traffic Signals Estimated Cost of Prol~osed Public Iml~rovements 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 Facilities Improvements Estimated Cost · East Olympic Parkway · W. Olympic Parkway · Otay Lakes Road · EastLake Parkway · Hunte Parkway Community Facilities District No. 06-1 EastLake-Woods, Vistas and Land Swap $6,628,980 $14,317,392 $8,113,494 $6,351,966 $1,565,687 Page 5 August 20~ Revved Feb~a~ 20~ · Proctor Valley Road $1,000,000 · Telegraph Canyon Road $2,700,000 · Traffic Signals $2,222,000 IV. BONDED INDEBTEDNESS AND INCIDENTAL EXPENSES A. Proiected Bond Sale For CFD No. 06-I there will be two separate issuance of bonds. One for Improvement Area A and one for Improvement Area B each with its own accounting, processing, and specifics to its obligated improvements within the CFD No. 06-I. The bond amount for CFD No. 06-I Improvement Area A will be $39 million, which will finance approximately $31 million in facilities. The bonds issued by CFD No. 06-I Improvement Area B assuming the 47.94 acre commercial site prepays, will be $8.7 million, which will finance approximately $6.8 million in facilities. The bonds for Improvement Area A have been sold while the bonds for Improvement Area B are planned to be sold in early to mid 2003. The bonds issued by CFD No. 06-I Improvement Areas A and B 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 Improvement Areas A and B 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 percent of the face amount of the bonds. Incidental Expenses to be Included in the Annual Lew of Special Taxes for Improvement Areas A and B 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, Community Facilities District No. 06-1 Page 6 EastLake - Woods, Vistas and Land Swap August 2002 Revised February 2003 payment of taxes, or costs otherwise incurred in order to carry out the authorized purposes of the district; any other expenses incidental to the construction, completion, and inspection of the authorized work; and the retirement of existing bonded indebtedness. While the actual cost of administering CFD No. 06-1 may vary, it is anticipated that the amount of special taxes, which can be collected, will be sufficient to fund at least $75,000 in annual administrative expenses prior to build-out of the project. V. RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX All of the property located within CFD No. 06-I, unless exempted by law, shall be taxed for the purpose of providing necessary facilities to serve CFD No. 06-1. 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-1 and B-2, for Improvement Area A and Improvement Area B respectively, the Rate and Method of Apportionment provides information sufficient to allow each property owner within CFD No. 06-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 No. 06-I. A. Exolanation for Soecial Tax Aooortionment When a community facilities district is formed, a Special Tax may be levied on each parcel of taxable property within the CFD to pay for the construction, acquisition and rehabilitation of public facilities, to pay for authorized services or to repay bonded indebtedness or other related expenses incurred by CFD No. 06-I. This Special Tax must be apportioned in a reasonable manner; however, the tax may not be apportioned on an ad valorem basis. When mom than one type of land use is present within a community facilities district, several criteria may be considered when apportioning the Special Tax. Generally, criteria based on building square footage, acreage, and land uses are selected, and categories based on such criteria are established to differentiate between parcels of property. These categories are a direct result of the developer's projected product mix, and are reflective of the proposed land use types within that community facilities district. Specific Special Tax levels are assigned to each land use class, with all parcels within a land use class assigned the same Special Tax rate. The Act does not require the Special Taxes to be apportioned to individual parcels based on benefit received. However, in order to insure fairness and equity, benefit principles have been incorporated in establishing the Special Tax rates for CFD No. 06-1. Community Facilities District No. 06~I EastLake-Woads, Vistas and Land Swap Page 7 August 2002 Revised February 2003 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 bome out through an examination of commonly accepted statistical measures. For example, in measuring average weekday vehicle trip-ends, the Institute of Transportation Engineer's 1995 Trip Generation report identifies land use as the primary determinant of trip-end magnitude. Commercial land uses typically generate more trip- ends than do single family residential land use. Similarly, larger single family detached dwellings typically generate a greater number of trip-ends than do smaller single family detached homes, and therefore, will tend to receive more benefit from road grading, road landscaping and road improvements. Drainage and flood control requirements generally vary with the amount of impervious ground cover per parcel. It follows that larger homes which have more impervious ground cover will create relatively more drainage flow than smaller homes. Special taxes for CFD No. 06-I Improvement Areas A and B (EastLake-Woods, Vistas and Land Swap) shall be levied to Taxable Property to satisfy the Special Tax Requirement as outlined in the CFD No. 06-I Improvement Areas A and B RMA's. The Land Use Class Categories of Taxation have been established for CFD No. 06-1. The categories are defined as follows: Residential Developed Parcels (single and multi-family residences) are taxed on the square footage of the building; Commemial Developed Parcels are taxed based on the acreage of the panel; and Hotel Developed Parcels are taxed based on the acreage of the parcel. Based on the types of public facilities that are proposed for CFD No. 06-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 No. 06-1 can be considered fair and reasonable. Assiened Soecial Tax Rates Exhibit C lists the Assigned Special Tax rates that may be levied against Developed Property, Commercial and Hotel Property within Improvement Areas A and B of CFD No. 06-I. The City Council will annually determine the actual amount of the Special Tax levy based on the method described in the RMA's. The City will levy a Special Tax to the extent necessary, sufficient to meet the Special Tax Requirement. Community Facilities District No. 06-1 EastLake- Woods, Vistas and Land Swap Page 8 August 2002 Revised February 2003 Backuo Soecial Tax When a Final Subdivision Map is recorded within each Improvement Area, the Backup Special Tax for Assessors Parcels of Developed Property classified as Residential Property or Commercial Property will be determined pursuant to Section C. 1.b of Exhibit B-1 for Improvement Area A and C.l.b of Exhibit B-2 for Improvement Area B. Accuracy of Information In order to establish the Maximum Annual Special Tax rates and the Backup Special Tax as set forth in the Rate and Method of Apportionment for CFD No. 06-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 No.06-I (Improvement Area A and B(Amended)), including the inability to meet the financial obligations of CFD No. 06-1. VI. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT Thc boundaries of CFD No. 06-I include all land on which the Special Taxes may be levied. The Amended Recorded Boundary Map of the area included within CFD No. 06-I is provided as Exhibit A. VII. GENERAL TERMS AND CONDITIONS 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. Transl~ortation Enhancement Facilities The City may, in its sole discretion, elect to author/ze and make the proceeds of any subsequent series of bonds available to pay the cost of construction or the purchase pr/ce for the acquisition of Improvements for Transportation Enhancement Facilities. This could result in the revision of the facilities priority structure for the utilization of such proceeds. Community Facilities District No. 06~1 EastLake-Woods, Vistas and Land Swap Page 9 ~ugust 2002 Revised February 2003 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-1 and B-2. 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's. Community Facilities District No. 06-1 EastLake - Woods, Vistas and Land Swap Page 10 August 2002 Revised February 2003 EXHIBIT A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-1 (EASTLAKE-WOODS, VISTAS AND LAND SWAP) AMENDED RECORDED BOUNDARY MAP Community Facilities District No. 06-1 EastLake-Woods, Vistas and Land Swap Page 11 August 2002 Revised February 2003 EXItlBIT B-1 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE~WOODS, VISTAS AND LAND SWAP) RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA A Community Facilities District No. 06-1 EastLake- Woods, Vistas and Land Swap Page 12 ~4ugust 2002 Revised February 2003 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I IMPROVEMENT AREA A (Eastlake - Woods and Vistas) 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. 06-1, Improvement Area A ("Improvement Area A") and collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," and "Undeveloped Property" as described below. All of the Taxable Property in Improvement Area A, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on thc applicable Final Subdivision Map, parcel map, condominium plan, record of survey, or other recorded docum~t creating or describing the land area. If the preceding maps for a land area arc not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of Improvement Area A 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); thc costs of collecting the Special Taxes (whether by thc County, the City, or otherwise); the costs of remitting the Special Taxes to the Trustee; the costs of thc Trustee (including its legal counsel) in the discharge of thc duties required of it under the Indenture; thc costs to the City, CFD~06-I, or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-06-I, or any designee thereof of providing continuing disclosure; thc costs associated with preparing Special Tax disclosure statements and responding to public inquiries regarding the Special Taxes; thc costs of the City, CFD-06-I, or any designee thereof related to any appeal of the levy or application of the Special Tax; and thc costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by thc City or CFD-06-I, for any other administrative purposes of Improvement Area A, including, but not limited to attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. City of Chula Vista Community Facilities District No. 06-1, Improvement Area Eastlake - Woods and Vistas "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned Assessor's Parcel number. "Assessor's Parcel Map" means an official map of the County Assessor of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with Section C. 1.a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, and Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax means the Special Tax 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-06-I for Improvement Area A 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-06-I" means City of Chula Vista Community Facilities District No. 06-1. "City" means the City of Chula Vista. "Commercial Property" means all Assessors' Parcels of Developed Property, for which a building permit(s) was issued for a non-residential use, excluding Community Purpose Facility Property and Hotel Property. "Community Purpose Facility Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City, acting as the legislative body of CFD-06-1. "County" means the County of San Diego. City of Cbula Vista Community Facilities District No. 06-1, Improvement Area Eastlake - g/oods and Vistas Page 2 "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. "Exempt Property" means property not subject to the Special Assigned Tax due to its classification as either Public Property, Property Owner Association Property, Community Purpose Facility Property, public or utihty easements "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. "Hotel Property" means any Assessor's Parcel(s) of Commercial Property within the boundaries of CFD 06-I entitled or otherwise designated by the City to be used as a Hotel site. "Hotel" means a building or group of buildings comprising six or more individual sleeping or living units without kitchens, except as otherwise provided herein, for the accommodation of transient guests. "Improvement Area A" means Improvement Area A of CFD No. 06-1 known as the Woods and Vistas. "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. "Laud Use Class" means any of the classes listed in Tables 1 and 2 of Section C. "Lot" means an individual legal lot created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. "Master Developer" means the owner of the predominant amount of Undeveloped Property in Improvement Area A. "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. "Outstanding Bonds" means all Bonds, which remain outstanding as defined in the Indenture. City of Chula Vista Community Facilities District No. 06-1, Improvement Area A Eastlake - Woods and Vistas Page 3 "Property Owner Association Property" means any property within the boundaries of Improvement Area A owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Annual Special Tax or the Backup Special Tax is equal for all Assessors' Parcels of Developed Property within Improvement Area A. For 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 within Improvement Area A. "Public Property" means any property within the boundaries of Improvement Area A that is owned by or dedicated to the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessors' Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure. "Special Tax" means the annual special tax to be levied in each Fiscal Year on each Assessor's Parcel of Taxable Property to fimd the Special Tax Requirement. "Special Tax Requirement" means that amount of Special Tax revenue required in any Fiscal Year for Improvement Area A to: (i) pay annual debt service on all Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD- 06-I provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property and for Improvement Area A; less (vi) a credit for Available Funds. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Improvement Area A that are not exempt from the Special Tax pursuant to law or Section E below. City of Chula I/ista Community Facilities District No. 06-1, Improvement Area A Eastlake - Woods and Vistas Page 4 "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 1" means a specific geographic location known as the Vistas development area as depicted in Exhibit A attached herein. "Zone 2" means a specific geographic location known as the Woods development area as depicted in Exhibit A attached herein. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessors' Parcels of Taxable Property within Improvement Area A shall be classified as Developed Property or Undeveloped Property and shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Developed Property shall be assigned to Zone 1 or Zone 2 and shall be further classified as Residential Property, Commemial Property or Hotel Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property, Commercial Property or Hotel Property shall be the greater of (1) the Assigned Special Tax described in Tables 1 and 2 below or (2) the Backup Special Tax computed pursuant to b. below. a. Assigned Soecial Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Tables 1 and 2. TABLE 1 Zone 1 (Vistas) Assigned Annual Special Tax for Developed Property Land Use Class Description 1 Residential Property Commercial Property Hotel Property Assigned Annual Special Tax $0.58 per square foot of Residential Floor Area $6,000 per Acre $6,000 per Acre City of Chula Vista Community Facilities District No. 06-I, Improvement ~lrea A Eastlake - Woods and Vistas Page 5 TABLE 2 Zone 2 (Woods) Assigned Annual Special Tax for Developed Property Land Use Class 1 2 Description Residential Property Commercial Property Maximum Annual Special Tax $0.67 per square foot of Residential Floor Area $6,000 per Acre b. Backul~ Soecial Tax When a Final Subdivision Map is recorded within Zone 1 and 2 of Improvement Area A the Backup Special Tax for Assessor's Parcels of classified as Residential Property, Commercial Property or Hotel Property shall be determined as follows: For each Assessor's Parcel of Residential Property or for each Assessor's Parcel of 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 1 (Vistas) $11,037 x A L Zone 2(Woods) $8,332 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 Commercial Property or Hotel Property or for each Assessor's Parcel of Undeveloped Property to be classified as Commercial Property or Hotel Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $11,037 for Zone 1 and $8,332 for Zone 2 by the total Acreage of each Assessor's parcels of the Commercial or Hotel Property City of Chula Vista Community Facilities District No. 06-1, [mprovement Area A ~' ] ~ ~J ~ Eastlake - Woods and Vistas Page 6 and Undeveloped Property to be classified as Commercial Property or Hotel Property within the Final Subdivision Map area. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Commercial Property, Hotel 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 Parcels 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 The Maximum Annual Special Tax for each Assessor's Parcel classified as Undeveloped Property shall be $11,037 per acre for Zone 1 and $8,332 per acre for Zone 2. 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 each Assessor's Parcel of Developed Property within Zones 1 or 2 at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property, excluding any Assessor's Parcels classified as Undeveloped Property pursuant to Section E, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel 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 Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel classified as Undeveloped Property pursuant to Section E 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 City of Chula Vista Community Facilities District No. 06-1, Improvement Area Eastlake - Woods and Vistas Page 7 a consequence of delinquency or default in the payment of Special Taxes by the owner of any other Assessor's Parcel. E. EXEMPTIONS The CFD Administrator shall classify the following Assessor Parcel(s) as Exempt Property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property within Zone 1 (Vistas) to less than 180.03 Acres and within Zone 2 (Woods) to less than 166.23 acres. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property to less than for Zone 1 (Vistas) 180.03 acres and Zone 2 (Woods) 166.23 acres will be classified as Undeveloped Property and shall he taxed as such. Tax exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes Exempt Property. The Maximum Annual Special Tax obligation for any property which would be classified as Public Property upon its transfer or dedication to a public agency but which cannot be classified as Exempt Property as described in paragraph 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 Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amotmt of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of CFD-06-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. City of Chula Vista Community Facilities District No. 06-I, Improvement Area,4 ~ ~ q, ~ Eastlake - Woods and Vistas Page 8 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-06-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 tendem 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 either $34.5 million in 2002 dollars, which shall increase by the Construction Inflation Index on July 1, 2003, and on each July 1 thereafter, or such lower number as (i) shall be determined by the CFD Administrator as sufficient to provide the public facilities under the authorized bonding program for CFD No. 06-1 Improvement Area A, or (ii) shall be determined by the Council concurrently with a covenant that it will not issue any more Bonds to be supported by Special Taxes levied under this Rate and Method of Apportionment as described in Section D. "Construction Fund" means an account specifically identified in the Indenture to hold funds which are currently available for expenditure to acquire or construct public facilities eligible under the Act. "Construction Inflation Index" means the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year which ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction Inflation Index shall be another index as determined by the CFD Administrator that is reasonably comparable to the Engineering News-Record Building Cost Index for the City of Los Angeles. "Future Facilities Costs" means the CFD Public Facilities minus public facility costs available to be funded through existing construction fund, or fimded by the Outstanding Bonds as defined below, minus public facility costs funded by interest earnings on the Construction Fund actually earned prior to the date of prepayment, and minus public facilities costs paid directly with Special Taxes. "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. Community Facilities District No. 06-1, Improvement Area A Eastlake - Woods and Vistas Page 9 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 Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Pamel to pay the Special Tax permanently satisfied as described herein; provided, however that a prepayment may be made only if there am no delinquent Special Taxes with respect to such Assessor's Parcel at the time of Prepayment. An owner of an Assessor's Parcel intending to prepay the Maximum Annual Special Tax obligation shall provide the CFD Administrator with written notice of intent to prepay. Within 30 days of receipt of such written notice, the CFD Administrator shall notify such owner of the Prepayment amount of such Assessor's Parcel. The CFD Administrator may charge a reasonable fee for providing this figure. The Prepayment Amount 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 Administrative 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 Assessor's Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit, issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to paragraph l by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within Improvement Area A excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. Community Facilities District No. 06-1, ]mprovement Area A Eastlake - Woods and Vistas Page 10 10. 11. 12. 13. Multiply the quotient computed pursuant to paragraph 2 by the principal mount 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 paragraph 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). If all the Bonds authorized to be issued for Improvement Areas A have not been issued, compute the Future Facilities Costs. Multiply the quotient computed pursuant to paragraph 2 by the amount if any, determined pm-suant to paragraph 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. Compute the amount the CFD Administrator reasonably expects to derive from the reinvestment of the Prepayment Amount less the Administrative Fees and Expenses (including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption) fi'om the date of prepayment until the redemption date for the Outstanding Bonds to be redeemed with the prepayment. Add the amounts computed pursuant to paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 10 (the "Defeasance Amount"). Determine the administrative fees and expenses of CFD-06~I, applicable prepayment totals, including the costs of computation of the prepayment, the costs to invest the prepayment proceeds, the costs of redeeming Bonds, and the cost of recording any notices to evidence the prepayment and the redemption (the "Administrative Fees and Expenses") 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 Indentm'e), 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 Community Facilities District No. 06-I, Improvement Area Eastlake - Woods and Vistas Page 11 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 paragraph 2 by the expected balance in the capitalized interest fund after such first interest payment (the "Capitalizedlnterest Credit"). 15. The Maximum Annual Special Tax prepayment is equal to the sum of the amounts computed pursuant to paragraphs 3, 4, 6, 11, and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 3, 4, 11, 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 paragraph 12 shall be retained by CFD-06. The amount computed pursuant to paragraph 5 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 paragraph 9 above, the CFD Admiuistrator 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 Improvement Area A both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued Community Facilities District No. 06-1, [mprovement Area A Eastlake - Woods and Vistas Page 12 may be partially prepaid. The amount of the prepayment shall be calculated as in Section H 1; except that a partial prepayment shall be calculated according to the following formula: PP = (PE x F) + A These terms have the following meaning: PP = the partial prepayment PE = the Prepayment Amount calculated according to Section H.1, minus Administrative Expenses and Fees determined pursuant to Step 12. F = the percent by which the owner of the Assessor's Parcel(s) is partially prepaying the Maximum Annual Special Tax. A= the Administrative Expenses and Fees determined pursuant to Step 12. 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-06-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 2042-2043 Fiscal Year. City of Chula Vista Community Facilities District No. 06-1, Improvement ,4rea Eastlake - Woods and Vistas Page 13 EXItlBIT B-2 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE-WOODS, VISTAS AND LAND SWAP) AMENDED RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA B Community Facilities District No. 06-I EastLake-Woods, Vistas and Land Swap Page 13 August 2002 Revised February 2003 AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I IMPROVEMENT AREA B (EastLake - "Land Swap") 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. 06-I, Improvement Area B ("Improvement Area B") and collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," and "Undeveloped Property" as described below. All of the Taxable Property in Improvement Area B, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of Improvement Area B 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-06-I or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-06-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-06-I or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of fimds fi'om an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD-06-I for any other administrative purposes of Improvement Area B, including, but not limited to City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 1 attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of 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 of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with Section C. 1.a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of the Indenture in excess of thc reserve requirement as defined in such Indenture, delinquent Special Tax paymants not required to fund thc Special Tax Requirement for any preceding Fiscal Year, Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Backup 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 by CFD-06-I for Improvement Area B under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September 1st in the following year. Unless defined differently in the applicable Indenture. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD-06-I means City of Chula Vista, Community Facilities District No. 06-1. "City" means the City of Chula Vista. "Commercial Property" means all Assessors' Parcels of Developed Property, for which a building permit(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Community Purpose Facility Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City, acting as the legislative body of CFD-06-I. City of Chula Vista Community Facilities District No. 06-I, Improvement Area B ~1~ ~i l EastLake - Land Swap 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. "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. "Final Subdivision Map" means a subdivision of property, created by recordation o£ 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 I and ending on the following June 30. "Improvement Area B" means Improvement Area B of CFD No. 06-I known as the "Land Swap". "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 fi~om 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. "Lot(s)" means an individual legal lot created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. "Master Developer" means the owner of the predominant amount of Undeveloped Property in Improvement Area B. "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 o£ Taxable Property. "Outstanding Bonds" mean all Bonds, which remain outstanding as defined in the Indenture. "Property Owner Association Property" means any property within the boundaries of Improvement Area B owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' Community Facilities District No. 06-[, Improvement Area B EastLake - Land Swap Page 3 Parcels of Developed Property within Improvement Area B. For 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 within Improvement Area B. "Public Property" means any property within the boundaries of Improvement Area B that is owned by or dedicated to the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessors' Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure. "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 Improvement Area B to: (i) pay annual debt service on all Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD- 06-1 provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property for Improvement Area B; less (vi) 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-06-I, Improvement Area B 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. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 4 "Zone 3" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone 4" means a specific geographic area as depicted in Extfibit A attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within, Improvement Area B shall be (a) categorized as being located in either Zone 3 or Zone 4, (b) classified as Developed Property or Undeveloped Property and (c) shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed Property shall then be classified as Residential or Commercial Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Commercial Property shall be the greater of (1) the Assigned Special Tax described in Table 1 below or (2) the Backup Special Tax computed pursuant to b. below. a. Assiuned Soecial Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. TABLE 1 Assigned Special Tax for Developed Property within Zone 3 and Zone 4 Land Use Class Description 1 Residential Property Commercial Property Assigned Special Tax $0.74 per square foot of Residential Floor Area $6,000 per Acre b. Backuo Special Tax When a Final Subdivision Map is recorded within Zone 3 or Zone 4, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Comanercial Property shall be determined as follows: City of Chula Vista FI . 5 ~ Community Facilities District No. 06-1, lmprovement Area B r EastLake - Land Swap Page 5 For each Assessor's Parcel of Residemial Property or for each Assessor's Parcel of 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 3 $20,563 x A L Zone 4 $6,667 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 Commercial Property or for each Assessor's Parcel of Undeveloped Property to be classified as Commercial Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $20,563 for Zone 3 and $6,667 for Zone 4 by the total Acreage of each Assessor's Parcels of the Commercial Property and Undeveloped Property to be classified as Conunercial Property within the Final Subdivision Map area. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Commercial 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 Parcels shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. City of Chula Vista Community Facilities District No. 06-[, Improvement Area B EastLake - Land Swap Page 6 Undeveloped Property Thc Maximum Annual Special Tax for each Assessor's Parcel classified, as Undeveloped Property shall be $20,563 per Acre for Zone 3 and $6,667 per Acre for Zone 4. 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 each Assessor's Parcel of Developed Property within Zone 3 and Zone 4 at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within Zone 3 and Zone 4, excluding any Assessor's Parcels classified as Undeveloped Property pursuant to Section E, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel 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 Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel classified as Undeveloped Property pursuant to Section E 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 Assessor's Parcel. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 7 E. EXEMPTIONS The CFD Administrator shall classify the following Assessor Parcel(s) as exempt property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4. Assessor's Parcels which cannot be classified as exempt property because such classification would reduce the Acreage of all Taxable Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4 will be classified as Undeveloped Property and shall be taxed as such. Tax-exempt status for proposes 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 cannot be classified as exempt property as described in paragraph 1 of Section F shall be prepaid in full by the seller pursuant to Section I. 1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still 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 for~vard a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of CFD-064 and 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. Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 8 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-06-I, Improvement Area B 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 author/zed to be financed by CFD- 06-1 Improvement Area B. "CFD Public Facilities Costs" means either $12.3 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 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. City of Chula I/ism Community Facilities District No. 06-L Improvement Area B EastLake - Land Swap Page 9 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 Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, 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. The Prepayment Amount (defined below) 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 Assessor's Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within Improvement Area B excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. city of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 10 o 10. Multiply the quotient computed pursuant to paragraph 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 paragraph 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). If all the Bonds authorized to be issued for Improvement Area B have not been issued, compute the Future Facilities Costs. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 5 to compute the mount of Future Facilities Costs to be allocated to such Assessor's Parcel (the "Future Facilities Amount'9. Compute the amount needed to pay imerest 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-06-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"). 11. 12. 13. 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 paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 11 (the "Defeasance Amount"). 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 fi'om the balance in the reserve fund on the prepayment date, but in no event shall such amount be less than zero. Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 11 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 paragraph 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 mounts computed pursuant to paragraphs 3, 4, 6, 10, and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 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 paragraph 10 shall be retained by CFD-06-I. The amount computed pursuant to paragraph 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 fired established under the Indenture to be used with the next prepayment of bonds or to make debt service payments. As a result of the payment of the current Fiscal Year's Special Tax levy as determined under paragraph 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 Improvement Area B both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued City of Chula Vista Community Facilities District No. 06-I, Improvement Area B EastLake - Land Swap Page 12 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=(PEx 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 I0. F = the pement 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 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-06-I, Improvement Area B 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 2043-2044 Fiscal Year. City of Chula Vista Community Facilities District No. 06-I, Improvement Area B EastLake - Land Swap Page 13 JallaSK] leqoJ~¥ 'xno§~6s '~]cl 6t,:t,'I:~I £00E/9/[ '§Mp'X~NNV-zo'ld\I'08I~\ b.ld\:M EXHIBIT C CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I IMPROVEMENT AREAS A AND B (EA STLAKE-WOODS, VISTAS AND LAND SWAP) ASSIGNED SPECIAL TAX RATES FOR DEVELOPED PROPERTY AND UNDEVELOPED PROPERTY Assigned Special Tax for Developed Property in Land Use Class 1 Community Facilities District No. 06-I Residential Deve !oped Parcels Land Use Class 1 - Improvement Area A Zone 1 (¥1istas) Land Use Class 1 - Improvement Area A Zone 2(V~?ods) Land Use Class 1 - Improvement Area B Zone 3(Land Swap) Maximum Annual Special Tax $.58 per square foot of Residential Floor Area $.67 per square foot of Residential Floor Area $.74 per square foot of Residential Floor Area Assigned Special Tax for Developed Property in Land Use Class 2 Community Facilities District No. 06-I Commercial Dev_~!loped Parcels Land Use Class 2 - Improvement Area A Zone l(¥1istas) Land Use Class 2 - ~tprovement Area A Zone 2(W. oods) Land Use Class 2 - Improvement Area B Zone 4(Lan_d Swap) Maximum Annual Special Tax $6,000 per acre of Commercial Property $6,000 per acre of Commercial Property $6,000 per acre of Commemial Property Assigned Special Tax for Undeveloped Property in Land Use Class 3 Community Facilities District No. 06-1 Hotel Pr(iperty Land Use Class 3 - Improvement Area A Zone 1 (¥1istas) Community Facilities District No. 0611 EastLake - floods, Vistas and Land.?wap Maximum Annual Special Tax $6,000 per acre of Hotel Property Page 14 August 2002 Revised February 2003 ATTACHMENT Parties and Recital Page(s) Agreement between City of Chula Vista and McGill Martin Self, Inc'. for Project Management and Special Tax Consultant Services for Community Facility Districts for Infrastructure Financing This agreement ("Agreement"), dated May 8, 2001 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibits A- 1 & A- 2, Paragraph 1 is between the City-related entity as is indicated on Exhibits A-1 & A-2, paragraph 2, as such (" City "), whose business form is set forth on Exhibits A- 1 & A-2, paragraph 3, and the entity indicated on the attached Exhibits A- 1 & A-2, paragraph 4, as Consultant, whose business form is set forth on Exhibits A-1 & A-2, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibits A-1 & A-2, paragraph 6 ("Consultant"), and is made with reference to the following facts: Whereas, the City is desirous of retairdng a firm to provide project management and special tax consultant services in order to ensure the timely formation of Community Facility Districts ~'or the financing of public infrastructure for the San Miguel Ranch Project and Village 6 of the Otay Ranch Project as further defined in Exhibits A-1 and A-2, respectively; and, Whereas, Consultant was selected based on the quality of previous similar work performed in association with the City's formation of Community Facilities Districts 99-1 (Otay Ranch) and 2000- 1 (Sunbow II); and, Whereas, the Consultant selection process was waived due to (1) the need to expedite the formation of the proposed Community Facilities Districts, (2) Consultant's familiarity with the community, 3) Consultant's extensive experience in the formation of these Districts in the City and (4) Consultant's fees are comparable to those fees charged for existing financing districts; and Whereas, 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; whereas, the Consultant's Scope of Work as set forth in Exhibits A-1 & A-2 may be amended to include work on additional Community Facility Districts within a three (3) year period following the date of this Agreement, as determined in the sole discretion of the City Manager and approved by the City Attorney. (End of Recitals. Next Page starts Obligatory Provisions.) 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-1 and A- 2, 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-1 and A-2, Paragraph g, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A-1 and A-2, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A- 1 and A-2, 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-1 and A-2, Paragraph 12 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care 2 Consultant, in performing any Services under tiffs 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 subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the mount set forth in the attached Exhibit A-1 and A-2, Paragraph 10. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A-1 and A-2, Paragraph 10, 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-1 and A-2, Paragraph 10, 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. (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-1 and A-2, at Paragraph 20, 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 mount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 20, Exhibit A-I and A-2. (2) Letter of Credit. In the event that Exhibit A-1 and A-2, at Paragraph 20, 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 20, Exhibit A-1 and A-2. (3) Other Security In the event that Exhibit A-1 and A-2, at Paragraph 20, 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. 1. 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 4 to provide the information, data, items and materials set forth on Exhibit A-1 and A-2, Paragraph 11, 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-1 and A-2, Paragraph 19, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A-I and A-2, Paragraph 19, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A-1 and A-2, Paragraph 8, 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 20 of Exhibit A- 1 and A-2, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A-1 and A-2, Paragraph 13. All 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-I and A-2, Paragraph 19 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A- l and A-2, Paragraph 14, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4 .Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply ifa Liquidated Damages Rate is provided in Exhibit A-1 and A-2, Paragraph 15. 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 perormance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defmed Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of 5 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 Liqnidated Damages Rate provided in Exhibit A-1 and A-2, Paragraph 15 ("Liquidated Damages Rate"). 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-1 and A-2, Paragraph 16, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 16 of Exhibit A-1 and A-2, 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 FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. 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 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-1 and A-2, Paragraph 16. 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 may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, 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 the conduct of the Consultant, or any agent or employee, subcontractors, or others in coimection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defendng against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request 7 by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 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. 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 reimbnrse City for any additional expenses incurred by the City. 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-1 and A-2, Paragraph 18 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 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. 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 9 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-1 and A-2, Paragraph 17 is marked, the Consultant and/or their principals is/are licensed with the State of Califomia 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 All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. 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. 10 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.] Signature Page to Agreement between City of Chula Vista and McGill Martin Self, Inc. for Project Management and Special Tax Consultant Services for the formation of Community Facilities Districts for Public Infrastructure Financing 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: daft Attest: ,2001 City of Chula Vista by: Shirley Hort~n, Mayor Susan Bigelow, City Clerk Approved as to form: Jqh~. Kaheny, City Atto~ley/ Dated: McGi~f, Inc. By: Exhibit List to Agreement ( X ) Exhibit A-1 and A~2. ( ) Exhibit B. 12 Exhibit A- 1 to Agreement between City of Chula Vista and McGill Mart'm Self, Inc. 1. Effective Date of Agreement: May 8, 2001 2. City-Related Entity: ("City") (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: Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: McGill Martin Self, Inc. 310 Third Street, Suite B6 Chula Vista, CA 91910 Chula Vista Office (619) 425q343 Fax Phone (619) 425-1357 Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation Place of Business, Telephone and Fax Number of Consultant: McGill Martin Self, Inc. 1500 Newell Avenue, Suite 700 A-l-1 Walnut Creek, California 94596-5180 Voice Phone (925) 988-9188 Fax Phone (925) 988-0170 7. General Duties: Oversee the establishment of a Community Facility District (CFD) for the San Miguel Ranch Project per Chula Vista Tract 99-04 (the "Property"). Develop and maintain concise work plans that identify critical issues; Establish lines of responsibilities; Prepare and maintain detailed schedule with milestones; Communicate responsibilities to all parties; Conduct meetings, as needed, to maintain project's schedule; Docttment project meetings and decisions including agenda, action plans and minutes; Track project progress and issue status reports; Coordinate the work of the financing team; Provide special tax consultant services; Prepare the Engineer's report or Special Tax Report; Prepare the acquisition/financing agreement; Recommend financial district boundaries; Coordinate with property owners within the proposed boundaries; Form financial district; Assist City in the administration of CFD; Prepare tables, exhibits and analyses for the bond sale; Provide CFD audit services and Development Impact Fee (DIF) audit services related to CFD; Review fmancing documents and prepare staff reports and Council agenda items. 8. Scope of Work and Schedule: A. Detailed Scope of Work: The scope of work tasks have been arranged into three inter-dependent major components as follow: 8.A.1 Project Management, Administration and Coordination The Consultant shall create and maintain a detailed project schedule showing critical path items and important milestones. The Consultant shall conduct meetings as needed to ensure that all issues having an impact on the project schedule are addressed and acted upon by the responsible party in a timely manner to meet the project schedule. The Consultant shall communicate and coordinate project issues with, but not limited to, all of the following: Developers, private consultants and engineers, city staff, private and public utilities and public financing team. For every meeting, the consultant shall prepare a comprehensive agenda with goals to achieve and an action plan listing the responsible parties to perform. On bi-weekly basis, or as needed, the Consultant shall provide written progress report for the project status versus the project schedule. The Consultant shall ensure compliance with City and State standards and all related documents. A-l-2 The Consultant and team will serVe as support to City's staff. A.s such, the Consultant shall perform all tasks needed to ensure project delivery in a timely manner. The Consultant shall provide written documentation to the City of all issues, meetings, project progress and decisions. The Consultant shall be proactive in identifying issues that impact the project schedule. Once an engineering issue, a policy decision, a financing decision or other issues are identified, the Consultant shall immediately propose an action plan and communicate possible solutions to all responsible parties and follow through on required actions. 8.A.2 Financial District Project Management The Consultant shall prepare, all Council Agenda Reports to the satisfaction of the City Engineer. (1) District Formation and Bond Sale The Consultant shall manage and oversee the progress of District Formation and Bond Sale. The Consultant shall prepare the Engineer's report or special tax report, related boundary diagrams, collect available data and shall assist in the development, review and analysis of all related documents including but not limited to the Engineer's Report or Special Tax Report, description of improvements, bid documents, developer reimbursements, cost estimates, cost and quantity audit, compliance with City's Transportation and Public Facilities Development Impact Fee programs, appraisal reports, value-to-lien ratios, assessment and tax formulas (as many as 10 are included), official statement or disclosure documents, bond purchase agreement, continuing disclosure, and resolutions, etc. The Consultant shall ensure compliance with City Policies and State laws. The Consultant shall deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the sofavare utilized by the City within two months of completion of the district or sooner as requested by the City. (2) The Consultant shall document in writing all issues, meetings, project progress and decisions and report thereon to the City Engineer. The Consultant shall monitor the progress of the Public Financing District and take all necessary steps to ensure efficient and timely district formation and sale of bonds. (3) The Consultant shall facilitate the district formation and bond sale by monitoring the progress of district formation, determining critical path tasks, acting as departmental liaison, arranging meetings with City staff, the financial team, engineers, developers, etc., coordinating information between the various parties, and by perform'rog all tasks necessary to ensure efficient, timely formation of the district and bond sale. The Consultant's tasks shall include, but not be limited to, recordation of the boundary A-l-3 (4) 8.A.3 (3) map, provide legal notice, perform work associated with the ballot, update and amend the special tax report to reflect final costs, amend and record the CFD boundary map (as necessary), prepare the final special tax report for Council approval, determine the property owner protest, prepare tables and other information required by the Underwriter for inclusion in the Official Statement, prepare and execute a special tax consultant certificate confirming the adequacy of special taxes to meet debt service requirements for the bond issues; assist in the preparation of three party agreements with utility companies, if any; assist in the preparation of the Acquisition/financing Agreement and subsequent amendments, if any, for CFD. The Consultant shall attend Council meetings to present the information to Council regarding district formation and bond sale or other related items. The Consultant shall prepare, to the satisfaction of the City Engineer, all Council Agenda reports necessary for completion of district formation and financing. Audit Services for CFD General The Consultant shall be responsible for providing auditing services for facilities included in CFD. These services shall include, but not be limited to, reviewing the developer's requests for each phased payment for conformity with the Financing Agreements and City policies, State law, certifying that all costs are eligible and payments have been paid to the appropriate contractor to ensure that the acquired improvements are lien free, and summarizing all costs to be reimbursed by the district fund. Review Relevant Contract Documents Consultant shall obtain and review all relevant construction contract documents, the Special Tax Report, the financing agreement, utility agreements, all change orders, the as-built drawings, the resolution of intention, Transportation, Public Facilities, and all other applicable Development Impact Fee programs (D1F), and all other pertinent documents, City policies and laws. Meet with Accounting Staff Consultant shall meet with the developers' and City's accounting staffto identify and confirm the accounting documents that will be required by the Consultant. Such documents shall include, but not be limited to, copies of invoices, canceled checks, change orders, unconditional lien releases, and other documents reflecting the items constructed and their cost. Improvement costs will be summarized by the consultant as DIF eligible or not (by type of D1F). The Consultant shall document meetings in writing. A-l-4 (4) Perform Audit Services The Consultant shall review each payment request submitted to the City for reimbursement fi:om the District fund. The Consultant shall request additional documentation fi:om the developer as needed. The Consultant shall provide written documentation to the City to include: 1) an analysis comparing the original estimate to the actual cost; 2) a letter of audited cost; 3) an executive summary and audit format; 3) an improvement location map; 4) a City of Chula Vista acceptance letter or other documentation acceptable to the City Engineer; 5) a summary of hard and soft costs prorated as DIF eligible and non DIF eligible; 6) a contract summary outlining the original price, change orders, and final contract price; 7) invoices, canceled checks, and unconditional lien releases, as provided by the developer; and 8) certification by the Consultant that the costs are eligible for reimbursement and that the request complies with the Acquisition/Financing Agreements. Requests for payments shall be consistent with the terms of the Financing Agreements for the District, Audit services described above shall be pursuant to the applicable CFD Acquisition/Financing Agreement and other related agreements. The CFD Acquisition/Financing Agreement may list more facilities than can be financed via the CFD. For purposes of this Agreement, the Consultant shall complete the audit of costs (hard and soft costs) for purposes of release of CFD funds in accordance with the CFD Acquisition/Financing Agreement and for purposes of establishing DII~ credit. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit services one year after the Date of Commencement. Unless otherwise approved by the City Engineer D. Date for completion of all Consultant services: Same as above 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commemial General Liability Insurance including $1,000,000. A-l-5 Automobile Liability: () () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 11. Materials Required to be Supplied by City to Consultant: N/A 12. Compensation: 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: Single Fixed Fee Amount: $ , payable as follows: ~_) Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Percent of Fixed Fee: $ $ $ A. ( ) 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 tha~t, 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 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. B. ~_) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are A-l-6 separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at thetimes 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. $ ( ) 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. Pementage 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 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. (X) 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: Not-to-Exceed Limitation on Time and Materials Arrangement A-l-7 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 for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $65,000 for project management and special tax consultant, $45,000 for audit services in accordance with this agreement and $7,500 for reimbursement of out of pocket expenses in accordance with paragraph 13 for a total compensation of $117,500, ("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. Category of Employee of Consultant Rate Schedule Hourly Name Rate Senior Principal Principal Manager Senior Professional Associate Professional Assistant Professional Drafter, Designer Secretary/Clerk/Technical 13. Materials Reimbursement Arrangement Michael McGill $165.00 Harry Burrowes $150.00 Greg Mattson $130.00 Varies $120.00 Varies $110.00 Varies $90.00 Varies $70.00 Varies $55.00 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: (~) None, the compensation includes all costs. O Copies, travel, data purchases, other expenses not to exceed $ : (X) Copies, not to exceed: $7,500 (aggregate total) O Travel, not to exceed $ : ( ) Printing, not to exceed $__ : ( ) Postage, not to exceed $__ : ( ) Delivery, not to exceed $__: O Long Distance Telephone Charges, not to exceed $ A-l-8 Cost or Rate O Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 14. Contract Administratom: City: Tom Adler, Civil Engineer Consultant: Greg Mattson, VP McGill Martin Self, Inc. 310 Third Ave, Suite B6 Chula Vista, CA. 92101 Phone (619) 425-1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA (__) $ per day. (~) Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (__) Not Applicable. Not an FPPC Filer. (X) FPPC Filer Category No. 1. Investments and sources of income. (__) Category No. 2. Interests in real property. (x) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (x) 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. (x) 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 A-l-9 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: 17. ~ Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: 19. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) (~) Quarterly (_O Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month (~) 15th Day of each Month ~ End of the Month (~) Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091674-800000 20. Security for Performance (~) Performance Bond, $ (~) Letter of Credit, $ (~) Other Security: Type: Amount: $ A-l-lO 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: (__) Retention Percentage: ~ Retention Amount: $ Retention Release Event: (__) Completion of All Consultant Services (__) Other: A-i-ll Exhibit A-2 to Agreement between City of Chula Vista and McGill Martin Self, Inc. 1. Effective Date of Agreement: May 8, 2001 2. City-Related Entity: ("City") (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: Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: McGill Martin Self, Inc. 310 Third Street, Suite B6 Chula Vista, CA 91910 Chula Vista Office (619) 425-1343 Fax Phone (619) 425~1357 Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( X ) Corporation Place of Business, Telephone and Fax Number of Consultant: McGill Martin Self, Inc. 1500 Newell Avenue, Suite 700 A-2-1 Walnut Creek, California 94596-5180 Voice Phone (925) 988-9188 Fax Phone (925) 988-0170 7. General Duties: Oversee the establishment of a Community Facihty District (CFD) for the Otay Ranch Village 6 Project per Chula Vista Tract .(the "Property"). Develop and maintain concise work plans that identify critical issues; Establish lines of responsibilities; Prepare and maintain detailed schedule with milestones; Communicate responsibilities to all parties; Conduct meetings, as needed, to maintain project's schedule; Document project meetings and decisions including agenda, action plans and minutes; Track project progress and issue status reports; Coordinate the work of the financing team; Provide special tax consultant services; Prepare the Engineer's report or Special Tax Report; Prepare the acquisition/financing agreement; Recommend financial district boundaries; Coordinate with property owners within the proposed boundaries; Form financial district; Assist City in the administration of the CFD; Prepare tables, exhibits and analyses for the bond sale; Provide CFD audit services and Development Impact Fee (DIF) audit services related to CFD; Review financing documents and prepare staff reports and Council agenda items. 8. Scope of Work and Schedule: A. Detailed Scope of Work: The scope of work tasks have been arranged into three inter-dependent major components as follow: 8.A.1 Project Management, Administration and Coordination The Consultant shall create and maintain a detailed project schedule showing critical path items and important milestones. The Consultant shall conduct meetings as needed to ensure that all issues having an impact on the project schedule are addressed and acted upon by the responsible party in a timely manner to meet the project schedule. The Consultant shall communicate and coordinate project issues with, but not limited to, all of the following: Developers, private consultants and engineers, city staff, private and public utilities and public financing team. For every meeting, the consultant shall prepare a comprehensive agenda with goals to achieve and an action plan listing the responsible parties to perform. On bi-weekly basis, or as needed, the Consultant shall provide written progress report for the project status versus the project schedule. The Consultant shall ensure compliance with City and State standards and all related documents. The Consultant and team will serve as support to City's staff. As such, the Consultant shall perform all tasks needed to ensure project delivery in a timely manner. A-2 -2 The Consultant shall provide written documentation to the City of all issues, meetings, project progress and decisions. The Consultant shall be proactive in identifying issues that impact the project schedule. Once an engineering issue, a policy decision, a financing decision or other issues are identified, the Consultant shall immediately propose an action plan and communicate possible solutions to all responsible parties and follow through on required actions. 8.A.2 Finan?ial District Project Management The Consultant shall prepare all Council Agenda Reports to the satisfaction of the City Engineer. (1) District Formation and Bond Sale The Consultant shall manage and oversee the progress of District Formation and Bond Sale. The Consultant shall prepare the Engineer's report or special tax report, related boundary diagrams, collect available data and shall assist in the development, review and analysis of all related documents including but not limited to the Engineer's Report or Special Tax Report, description of improvements, bid documents, developer reimbursements, cost estimates, cost and quantity audit, compliance with City's Transportation and Public Facilities Development Impact Fee programs, appraisal reports, valueqto-lien ratios, assessment and tax formulas (as many as 10 are included), official statement or disclosure documents, bond purchase agreement, continuing disclosure, and resolutions, etc. The Consultant shall ensure compliance with City Policies and State laws. The Consultant shall deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital flies compatible with the software utilized by the City within two months of completion of the district or sooner as requested by the City. (2) The Consultant shall document in writing all issues, meetings, project progress and decisions and report thereon to the City Engineer. The Consultant shall monitor the progress of the Public Financing District and take all necessary steps to ensure efficient and timely district formation and sale of bonds. (3) The Consultant shall facilitate the district formation and bond sale by monitoring the progress of district formation, determining critical path tasks, acting as departmental liaison, arranging meetings with City staff, the financial team, engineers, developers, etc., coordinating information between the various parties, and by performing all tasks necessary to ensure efficient, timely formation of the district and bond sale. The Consultant's tasks shall include, but not be limited to, recordation of the boundary map, provide legal notice, perform work associated with the ballot, update and amend the special tax report to reflect final costs, amend and record the CFD boundary map (as necessary), prepare the final special tax report for Council approval, determine the property owner protest, prepare tables and other information required by the A-2 -3 (5) 8.A.3 (3) (4) (3) Undemrriter for inclusion in the Official Statement, prepare and execute a special tax consultant certificate confirming the adequacy of special taxes to meet debt service requirements for the bond issues; assist in the preparation of three party agreements with utility companies, if any; assist in the preparation of the Acquisition/financing Agreement and subsequent amendments, if any, for CFD. The Consultant shall attend Council meetings to present the information to Council regarding district formation and bond sale or other related items. The Consultant shall prepare, to the satisfaction of the City Engineer, all Council Agenda reports necessary for completion of district formation and financing. Audit Services for CFD General The Consultant shall be responsible for providing auditing services for facilities included in CFD. These services shall include, but not be limited to, reviewing the developer's requests for each phased payment for conformity with the Financing Agreements and City policies, State law, certifying that all costs are eligible and payments have been paid to the appropriate contractor to ensure that the acquired improvements are lien free, and summarizing all costs to be reimbursed by the district fund. Review Relevant Contract Documents Consultant shall obtain and review all relevant construction contract documents, the Special Tax Report, the financing agreement, utility agreements, all change orders, the as-built drawings, the resolution of intention, Transportation, Public Facilities, and all other applicable Development Impact Fee programs (DIll), and all other pertinent documents, City policies and laws. Meet with Accounting Staff Consultant shall meet with the developers' and City's accounting staffto identify and confirm the accounting documents that will be required by the Consultant. Such documents shall include, but not be limited to, copies of invoices, canceled checks, change orders, unconditional lien releases, and other documents reflecting the items constructed and their cost. Improvement costs will be summarized by the consultant as DIF eligible or not (by type of DIF). The Consultant shall document meetings in writing. (4) Perform Audit Services The Consultant shall review each payment request submitted to the City for reimbursement fi-om the District fund. The Consultant shall request additional A-2 -4 doctanentation from the developer as needed. The Consultant shall provide written documentation to the Cityto include: 1) an analysis comparing the original estimate to the actual cost; 2) a letter of audited cost; 3) an executive summa~ and audit format; 3) an improvement location map; 4) a City of Chula Vista acceptance letter or other documentation acceptable to the City Engineer; 5) a sunnnary of hard and soft costs prorated as DIF eligible and non DIF eligible; 6) a contract summary outlining the original price, change orders, and final contract price; 7) invoices, canceled checks, and unconditional lien releases, as provided by the developer; and 8) certification by the Consultant that the costs are eligible for reimbursement and that tile request complies with the Acquisition/Financing Agreements. Requests for payments shall be consistent with the terms of the Financing Agreements for the District. Audit services described above shall be pursuant to the applicable CFD Acquisition/Financing Agreement and other related agreements. The CFD Acquisition/Financing Agreement may list more facilities than can be financed via the CFD. For purposes of this Agreement, the Consultant shall complete the audit of costs (hard and soft costs) for purposes of release of CFD funds in accordance with the CFD Acquisition/Financing Agreement and for purposes of establishing DIF credit. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit one year after the Date of Commencement. Unless otherwise approved by the City Engineer D. Date for completion of all Consultant services: Same as above 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 11. Materials Required to be Supplied by City to Consultant: N/A A-2-5 12. Compensation: (__) 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 mounts and at the times or milestones or for the Deliverables set foffia below: Single Fixed Fee Amount: $ , payable as follows: (__) Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Percent of Fixed Fee: $ $ A.() 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 heretmder 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 fi'om 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 heroin 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. B. ~ Phased Fixed Fee Arrangement. For the perfomaance 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. $ A-2-6 $ $ ( ) 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 flee 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 cordpensation due for that phase. The retention amount or pementage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the fidl retention has been held back from the compensation due for that phase. Pementage 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 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. X) 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 hereinbelow according to the following terms and conditions: (~) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $_ including all Materials, and other "reimbursables" ("Maximum Compensation"). (X) Limitation without Further Authorization on Time and Materials Arrangement A-2 -7 At such time as Consultant shall have incurred time and materials equal to $25- 35,000 for project management and special tax consultant, $45,000 for audit services in accordance w~th this agreement and $7,500 for retmbursement of out of pocket expenses m accordance with paragraph 13 for a total compensation of $77,500-87,500, ("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 fxom providing additional Services at Consultant% own cost and expense. Rate Schedule Category of Employee of Consultant Hourly Name Rate Senior Principal Michael McGill $165.00 Principal Harry Burrowes $150.00 Manager Greg Mattson $130.00 Senior Professional Varies $120.00 Associate Professional Varies $110.00 Assistant Professional Varies $90.00 Drafter, Designer Varies $70.00 Secretary/Clerk/Technical Varies $55.00 13. 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: (~) None, the compensation includes all costs. (~) Copies, travel, data purchases, other expenses not to exceed $ : (X) Copies, not to exceed: $7,500 (aggregate total) O Travel, not to exceed $ (_) Printing, not to exceed $ ~) Postage, not to exceed $__ O Delivery, not to exceed $__: O Long Distance Telephone Charges, not to exceed $ O Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : Cost or Rate 14. Contract Administrators: City: Dino Serafini, Civil Engineer A-2-8 The Consultant shall provide written documentation to the City of all issues, meetings, project progress and decisions. The Consultant shall be proactive in identifying issues that impact the project schedule. Once an engineering issue, a policy decision, a financing decision or other issues are identified, the Consultant shall immediately propose an action plan and communicate possible solutions to all responsible parties and follow through on required actions. 8.A.2 Financial District Project Management The Consultant shall prepare all Council Agenda Reports to the satisfaction of the City Engineer. (1) District Formation and Bond Sale The Consultant shall manage and oversee the progress of District Formation and Bond Sale. The Consultant shall prepare the Engineer's report or special tax report, related boundary diagrams, collect available data and shall assist in the development, review and analysis of all related documents including but not limited to the Engineer's Report or Special Tax Report, description of improvements, bid documents, developer reimbursements, cost estimates, cost and quantity audit, compliance with City's Transportation and Public Facilities Development Impact Fee programs, appraisal reports, value-to-lien ratios, assessment and tax formulas (as many as 10 are included), official statement or disclosure documents, bond purchase agreement, continuing disclosure, and resolutions, etc. The Consultant shall ensure compliance with City Policies and State laws. The Consultant shall deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City within two months of completion of the district or sooner as requested by the City. (2) The Consultant shall document in writing all issues, meetings, project progress and decisions and report thereon to the City Engineer. The Consultant shall monitor the progress of the Public Financing District and take all necessary steps to ensure efficient and timely district formation and sale of bonds. (3) The Consultant shall facilitate the district formation and bond sale by monitoring the progress of district formation, determining critical path tasks, acting as departmental liaison, arranging meetings with City staff, the financial team, engineers, developers, etc., coordinating information between the various parties, and by performing all tasks necessary to ensure efficient, timely formation of the district and bond sale. The Consultant's tasks shall include, but not he limited to, recordation of the boundary map, provide legal notice, perform work associated with the ballot, update and amend the special tax report to reflect final costs, amend and record the CFD boundary map (as necessary), prepare the final special tax report for Council approval, determine the property owner protest, prepare tables and other information required by the A~2-3 (5) 8.A.3 (3) (4) (3) Underwriter for inclusion in the Official Statement, prepare and execute a special tax consultant certificate comSnning the adequacy of special taxes to meet debt service requirements for the bond issues; assist in the preparation of three party agreements with utility companies, if any; assist in the preparation of the Acquisition/financing Agreement and subsequent amendments, if any, for CFD. The Consultant shall attend Council meetings to present the information to Council regarding district formation and bond sale or other related items. The Consultant shall prepare, to the satisfaction of the City Engineer, all Council Agenda reports necessary for completion of district fomaation and financing. Audit Services for CFD General The Consultant shall be responsible for providing auditing services for facilities included in CFD. These services shall include, but not be limited to, reviewing the developer's requests for each phased payment for conformity with the Financing Agreements and City policies, State law, certifying that all costs are eligible and payments have been paid to the appropriate contractor to ensure that the acquired improvements are lien free, and summarizing all costs to be reimbursed by the district fund. Review Relevant Contract Documents Consultant shall obtain and review all relevant construction contract documents, the Special Tax Report, the financing agreement, utility agreements, all change orders, the as-built drawings, the resolution of intention, Transportation, Public Facilities, and all other applicable Development Impact Fee programs (DIF), and all other pertinent documents, City policies and laws. Meet with Accounting Staff Consultant shall meet with the developers' and City's accounting staffto identify and confirm the accounting documents that will be required by the Consultant. Such documents shall include, but not be limited to, copies of invoices, canceled checks, change orders, maconditional lien releases, and other documents reflecting the items constructed and their cost. Improvement costs will be summarized by the consultant as DIF eligible or not (by type of DIF). The Consultant shall document meetings in writing. (4) Perform Audit Services The Consultant shall review each payment request submitted to the City for reimbursement from the District fired. The Consultant shall request additional A-2 -4 documentation fxom the developer as needed. The Consultant. shall provide written documentation to the City to include: 1) an analysis comparing the original estimate to the actual cost; 2) a letter of audited cost; 3) an executive summary and audit format; 3) an improvement location map; 4) a City of Chula Vista acceptance letter or other documentation acceptable to the City Engineer; 5) a summary of hard and soft costs prorated as DIF eligible and non DIF ehgible; 6) a contract summary outlining the original price, change orders, and final contract price; 7) invoices, canceled checks, and tmconditional lien releases, as provided by the developer; and 8) certification by the Consultant that the costs are eligible for reimbursement and that the request complies with the Acquisition/Financing Agreements. Requests for payments shall be consistent with the terms of the Financing Agreements for the District. Audit services described above shall be pursuant to the applicable CFD Acquisition/Financing Agreement and other related agreements. The CFD Acquisition/Financing Agreement may list more facilities than can be financed via the CFD. For purposes of this Agreement, the Consultant shall complete the audit of costs (hard and soft costs) for pui'poses of release of CFD funds in accordance with the CFD Acquisition/Financing Agreement and for purposes of establishing DIF credit. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit one year after the Date of Commencement. Unless otherwise approved by the City Engineer D. Date for completion of all Consultant services: Same as above 10. Insurance (x) (x) (x) () () Requirements: Statutory Worker's Compensation Insurance Employer's Liability Insurance coverage: $1,000,000. Commercial General Liability Insurance including Automobile Liability: $1,000,000. Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 1 h Materials Required to be Supplied by City to Consultant: N/A A-2 -5 12. Compensation: (__) 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 frmes or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: $ , payable as follows: (__) Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Percent of Fixed Fee: $ $ $ A. ( ) I. Interim Monthly Advances. The City shall make interim monthly advances against the compensation dne 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 flee 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 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. 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 $ A-2-6 $ $ ( ) h Interim Monthly Advances, The City shall make interim monthly advances against the compensation due for each phase on a percentage ofcomplefion 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 fi~ee 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 fi~om 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 bythe 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. (X) 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: 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 for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (X) Limitation without Further Authorization on Time and Materials Arrangement A-2-7 At such time as Consultant shall have incurred time and materials equal to $25- 35,000 for project management and special tax consultant, $45,000 for audit services in accordance with this agreement and $7,500 for reimbursement of out of pocket expenses in accordance with paragraph 13 for a total compensation of $77,500-87,500, ("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 Senior Principal Principal Manager Senior Professional Associate Professional Assistant Professional Drafter, Designer Secretary/Clerk/Technical Michael McGill $165.00 Harry Burrowes $150.00 Greg Mattson $130.00 Varies $120.00 Varies $110.00 Varies $90.00 Varies $70.00 Varies $55.00 13. 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: (~) None, the compensation includes all costs. (~) Copies, travel, data purchases, other expenses not to exceed $ : (X) Copies, not to exceed: $7,500 (aggregate total) (~ Travel, not to exceed $__: CO Printing, not to exceed $ __: O Postage, not to exceed $ : O Delivery, not to exceed $ __ : (~ Long Distance Telephone Charges, not to exceed $ CO Other Actual Identifiable Direct Costs: , not to exceed $ : , not to exceed $ : Cost or Rate 14. Contract Administrators: City: Dino Serafini, Civil Engineer A-2-8 Consultant: Greg Mattson, VP McGill Martin Self, Inc. 310 Third Ave, Suite B6 Chula Vista, CA. 92101 Phone (619) 425-1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA (~) $ per day. (~ Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (~) Not Applicable. Not an FPPC Filer. (X) FPPC Filer (~) Category No. 1. Investments and sources of income. ( ) Category No. 2. Interests in real property. (x) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (x) 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. (x) 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: A-2-9 17. (~) Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: 19. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) (__) Quarterly (__) Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month (__) 15th Day of each Month (__) End of the Month (__) Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091678-800000 20. Security for Performance (~) Performance Bond, $ (~) Letter of Credit, $ (~) Other Security: Type: Amount: $ (_D 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: (~) Retention Percentage: (__) Retention Amount: $ Retention Release Event: A-2-10 ( ) Completion of All Consultant Services ( ) Other: H:LHOME~ENGINEER~LANDDEV~CFD Consultant AgreementsWiMS.doc A-2-11 Consultant: Greg Mattson, VP McGill Martin Self, Inc. 310 Third Ave, Suite B6 Chula Vista, CA. 92101 Phone (619) 425-1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA (__) $ per day. (~) Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (__) Not Applicable. Not an FPPC Filer. (X) FPPC Filer O Category No. 1. Investments and sources of income. ( ) Category No. 2. Interests in real property. (x) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory; permit or licensing authority of the department. (x) 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. (x) 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: A-2~9 17. (~) Consultant is Real Estate Broker and/or Salesman 18. Permitted Subeonsultants: 19. Bill Processing: A Consultant's Billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) (__) Quarterly (~) Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month (~) 15th Day of each Month (~ End of the Month ~ Other: Completion of Market Analysis and Market Projection C City's Account Number: 00891-2721/05091678-800000 20. Security for Performance (~) Performance Bond, $ _ O 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: (~) Retention Percentage: (~) Retention Amount: $ Retention Release Event: A-2-10 · ( ) Completion 0fAll Consultant Services (__) Other: HSHOME~ENGINEERXLANDDEV~CFD Consultant Agre~mentsLMMS.doc A-2-11 c7~/o7 ATTACHMEN¥ -. Agreement between City of Chula Vista and Brown, Divert, Hessell & Brewer LLP for Bond Counsel Services related to various financings and to take place over the term of the agreement. This agreement ("Agreement"), dated March 16, 1999 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 Whereas, Brown, Divert, Hessell & Brewer possesses the requisite expertise and knowledge to assist the City/Agency in providing requisite bond counsel services; and, Whereas, City of Chula Vista, hereafter referred to as "City" is desirous of taking advantage of said knowledge and expertise; and, Whereas, 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/Agency within the time frames herein provided all in accordance with the terms and conditions of this Agreement; NOW, THEREFORE, BE IT RESOLVED that the City/Agency 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". The General Duties shall be herein referred to as the "Defined Services". Failure to complete the Defined Services does not, except at the option of the City, operate to terminate this Agreement. B. 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. C. 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, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding increase in the compensation associated with said additional services. Standard of Care Consultant, in performing any Services under this a~reement, 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 practicin~ under similar conditions and in similar locations. 2 E. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categor- ies, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 8. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 8, 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 8, unless Errors and Omissions coverage is included in the General Liability policy. F. 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. (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. 3 G. 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 regu~larly 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. B. Compensation Consultant shall be compensated in accordance with Exhibit A, Paragraph 9. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 10, 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 upon 30 days written notice by either party. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 11. 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 per- formance. 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 4 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 11 ("Liquidated Damages Rate"). 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 purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall 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 k~ow 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 FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. 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 d~ring 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 may be the subject ~tter 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 E)~hibit A, Paragraph 12. Consultant further warrants and represents that no promise of future emplo~rment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in con~ection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, 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, indeu%uify, 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 the conduct of the Consultant, or any agent or 6 employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its off$cers, 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. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 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. 9. Errors and Omissions In the event that the City ~dministrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement ha~ 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. 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. 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 subconsultants identified thereat as "Permitted Subconsultants". 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 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. 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 performin9 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, 8 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. 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 recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 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, Consult- ant 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 13 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 All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the united States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. 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 arisin9 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. Signature Page to Agreement between City of Chula Vista, et. al., and Brown, Diven, Hessell for Bond Counsel Services; & ~rewer 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: City of Chula Vista, et. al. Attest: Susan Bigelow, City Clerk Approved as to form: eny, Clty~L~6rney Dated: by: ~ . Shirley Hot, on, Mayor/Chair Brown, Diven, Hessell & Brewer LLP Exhibit List to Agreement (X) Exhibit A. ( ) Exhibit B: B rowI1, LExhibit A to Agreement between City of Chula Vista and Diven, Hessell & Brewer LLP Effective Date of Agreement: March 16, 1999 city-Related Entity: City of Chula Vista, a political subdivision of the State of California Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula vista, CA 91910 Consultant: Brown, Diven, ~essell & Brewer LLP Business Form of Consultant: ( ) Sole Proprietorship ( X ) Partnership ( ~ ) Corporation Place of Business, Telephone and Fax Number of Consultant: Brown, Divert, ~essell & Brewer LLP 400 South Sierra Ave., Suite 100 Solana Beach, CA 92075 (619)456-1915 Fax (619)259-0292 General Duties: A. ~Consultant" shall perform legal services in connection with the proposed proceedings relating to the formation of one or more community facilities districts (collectively, the ~CFD") for the purpose of financing infrastructure improvements in the area of the City known as the Otay Ranch territory, including any related issuance of Bonds, under proceedings conducted pursuant to the 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. Such services as to each CFD shall include: Preparation of all resolutions, notices, bond forms, and other papers and documents required in the proceedings; 2) Negotiation and preparation of necessary agreements, including but not limited to, a reimbursement agreement, an acquisition and financing agreement and joint community facilities financing agreement(s); 3) Examination of the proceedings related to the formation of the CFD, step by step, as taken; 4) Appear at all hearings under the proceedings, and attend any meeting where attendance is required; 5) Review the "Report" of the Special Tax Consultant as it relates to the proceedings for the formation of the CFD; 6) Review and examine the map showing the area and boundaries of the CFD; 7) Review the method and formula utilized by the Special Tax Consultant for the apportionment of the special tax; 8) Participate with the City's financing team to determine the structure of the bond issue(s); 9) Assisting in the review of those sections of the official statement to be disseminated in connection with the issuance of any series of bonds related to authority and security for the bonds, tax-exemption, legal opinion, litigation, summary of bond indenture, bond purchase agreement or notice of sale and other supporting documentation relating to the offering for sale of the bonds; 10) Prepare or review any continuing disclosure agreement required under SEC Rule 15c2-12. 11) Consulting with the underwriter, their legal counsel, rating agencies and credit enhancement providers; 12) Consulting with the trustee, fiscal agent or paying agent and their counsel; 2 13) Assist in any election procedure processing, as necessary and/or required; 14) Issuance of an approving legal opinion attesting to the validity of the proceedings and the issuance of each series of bonds by each CFD. Counsel's approving legal opinion will be addressed to each CFD and will be delivered by us on the date that each series of bonds are exchanged for their purchase price (the ~'Closing"); 15) Providing any necessary supplemental legal opinions as to the applicability of the registration requirements of federal securities laws and other matters related to the issuance of each series of bonds; provided, however, such opinions do not include the rendering of a 10(b) 5 opinion regarding the official statement; and 16) Instruction and advice to the City and its staff in connection with any of the foregoing. B. In providing the required legal services Warren Diven will act as the lead attorney and primary contact with the City. He will attend meetings with the City staff and the other members of the financing team. Mr. Divert will work directly with the financing team in undertaking the proceedings to form each CFD. Robert Hessell may assist Mr. Divert and attend meetings in his absence and shall, under Mr. Diven's direction, be responsible for providing all required tax analysis and support in the scheduling and coordination of bond closings, preparation of closing documents and transcripts. C. LIMITATION OF ENC~AGEMENT DR~-D SCOPE OF SERVICES Counsel's services in this engagement are limited to those expressly set forth in the preceding section. Among other things, Counsel's services do not include: 1) Preparing requests for tax rulings from the Internal Revenue Service, or no action letters from the Securities and Exchange Commission. 2) Except as described in the section above, assisting in the preparation or review of official statement or other disclosure an 3) document with respect to any series of bonds, or performing an independent investigation to determine the accuracy, completeness or sufficiency of any such document or rendering advice that the official statement or other disclosure document does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading. 3) Preparing blue sky or investment surveys with respect to any series of bonds. 4) Making an investigation or expressing any view as to the creditworthiness of the bonds. 5) Representing the City or the District in Internal Revenue Service examinations or inquiries, or Securities and Exchange Commission investigation~. 6) After Closing of any series of bonds, providing a CFD or the City continuing advice concerning any actions necessary to assure that interest paid on the bonds will continue to be excludable from gross income for federal income tax purposes. D. ADDITIONAL SERVICES - Upon written request of the City or a CFD, Counsel will provide legal services related to certain appurtenant legal matters, including, but not limited to, the following: 1) Litigation challenging the validity of (a) the proceedings to form the CFD and/or to authorize the levy of special taxes or issuance of bonds or (b) the bonds. 2) Ongoing review and advice regarding the CFD compliance with any applicable continuing disclosure agreement. 3) Such other services as the City or CFD and Counsel should agree. Counsel will perform any of the above services at a rate to be mutually agreed upon before any work is actually performed. E. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: F. Date for completion of all Consultant services: Termination of Agreement by written notice from either party. 8. Scope of Work and Schedule: See Section 7 above. 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (.) 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: $10,000,000 (not included in Commercial General Liability coverage). 10. Materials Required from City: None !1. 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: Single Fixed Fee Amount Payable at Closing of Bond Sale: First Series of Bonds for Each CFD Total Principal Amount of Bonds Sold $5,000,000 or less $5,000,001 to $10,000,000 Fee 0.5 of 1% of the Principal Amount Sold, with a minimum fee of $15,000; 0.25 of 1% of the excess over $5,000,000; $10,000,001 to $20,000,000 $20,000,001 or more 0.125 of 1% of the excess over $10,000,000; 0.0625 of 1% of the excess over $20,000,000. Subsequent Series of Bonds for Same CFD Total Principal Amount of Bonds Sold $5,000,000 or less $5,000,001 to $10,000,000 $10,000,001 to $15,000,000 $15,000,001 or more Fee 0.5 of 1% of the Principal Amount Sold, with a minimum fee of $I0,000; 0.20 of 1% of the excess over $5,000,000; O. 10 of 1% of the excess over $10,000,000; 0.05 of 1% of the excess over $15,000,000. Bond Antici~a~ion Notes If bond anticipation notes are issued, the fee for each series of such notes shall be twenty-five percent of the comparable fee for a series of bonds of the same principal amount calculated pursuant to the applicable scale set forth above, but not less than $2,500. Abandonment o~ Procee~ingsl Inability to Issue Bonds In the event that the proceedings to form a CFD are terminated prior to formation or a CFD is unable to issue the bonds for reasons unrelated to the validity of the proceedings to form such CFD or the proceedings to authorize the issuance of the bonds, Counsel shall be paid on an hourly basis at the rate of $150 per hour for all services rendered to the date of termination of the proceedings or the determination by such CFD that the CFD is unable to issue the bonds. Such fees may not exceed $10,000. Such fees shall be due and payable upon invoice from Counsel following the abandonment of the proceedings to form the CFD or a determination by the CFD that the CFD is unable to issue the bonds. Such fees shall be payable solely from advances to the City from the owners or developers of property within the proposed CFI). 12. Materials Reimbursement Arrangement: In addition to the foregoing fees, Consultant will be reimbursed for out-of-pocket expenses incurred, including document production and reproduction, travel, telecommunications, messenger services, and other document preparation and delivery services. 13. Contract Administrators: City: Robert W. Powell, Finance Director Consultant: Warren Diven, Esq. 14. Liquidated Damages Rate: ( ) Other: None 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: None 18. Bill A. Processing: Compensation is payable upon submission of invoice at bond closing out of bond proceeds, or in the event that the proceedings to form a CFD are terminated prior to formation, or a CFD is unable to issue bonds for reasons unrelated to the validity of the proceedings to form such CFD or the proceedings to authorize the issuance of the bonds, upon submission of invoice at time of termination payable from developer advances to the City. City's Account Number: Bond Proceeds or Developer Deposits. 19. Security for Performance: N/A RESOLUTION NO.2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OF INTENTION OF CONSIDERATION TO CHANGES AND MODIFICATIONS TO THE RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES AUTHORIZED TO BE LEVIED WITHIN IMPROVEMENT AREA B OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS AND LAND SWAP) 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 06-I (Eastlake - Woods, Vistas and Land Swap) (the "District"), to designate two improvement areas therein ("Improvement Area A" and "Improvement Area B") and to authorize the levy of special taxes within each Improvement Area and the issuance by the District of bonds for each Improvement Area pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended (Govermnent 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, the qualified electors of each Improvement Area of the District, voting in a special election held on September 17, 2002, approved the authorization to levy special taxes within each Improvement Area pursuant to a separate rate and method of apportionment of such special taxes for each Improvement Area (the rate and method of apportionment of special taxes approved for Improvement Area B shall be referred to as the "Existing Improvement Area B RMA"); and WHEREAS, subsequent to the formation of the District and such election, The EastLake Company, LLC ("EastLake'), the master developer of the property within the District, has notified the City of Chula Vista (the "City") that EastLake intends to prepay the special tax obligation for approximately 48 acres of commercial property located within Improvement Area B pursuant to the Existing Improvement Area B RMA; and WHEREAS, the prepayment of the special tax obligation for such commercial property will result in a decrease in the number of acres of Undeveloped Property (as such term is defined in the Existing Improvement Area B RMA) that will be subject to taxation pursuant to the Existing Improvement Area B RMA; and WHEREAS, EastLake has requested, and the City staff and City financing team for the District have concurred with such request, that that the City Council, acting in its capacity as the legislative body of the District, initiate proceedings to consider modifying the Existing Improvement Area B RMA to adjust for the prepayment of the special tax obligation for the commercial property; and WHEREAS, this City Council desires to initiate such proceedings and to set the time and place for a public hearing on this Resolution. 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. 06-I (EASTLAKE - WOODS, VISTAS AND LAND SWAP), DOES HEREBY RESOLVE, DECLARE, FIND, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. RECITALS. The above recitals are all true and correct. SECTION 2. DESCRIPTION OF THE AREA TO BE AFFECTED. The area to be affected by the proposed modification, if approved, is all of Improvement Area B of the District which is generally described as follows: All property within the boundaries of Improvement Area B of Community Facilities District No. 06-I (Eastlake - Woods, Vistas and Land Swap), as shown on a map as previously approved by the City Council of the City, such map designated by the name of such District, a copy of which is on file in the office of the City Clerk of the City. SECTION 3. DECLARATION OF INTENTION TO CONSIDER THE MODIFICATION OF THE EXISTING IMPROVEMENT AREA B RMA. This City Council hereby declares its intention to consider modifying the Existing Improvement Area B RMA so that the rate and method of apportionment of special taxes authorized to be levied within Improvement Area B reads as set forth in Exhibit A attached hereto and incorporated herein by this reference. SECTION 4. PUBLIC HEARING. NOTICE IS HEREBY GIVEN that on May 6, 2003, at the hour of 6 p.m., in the regular meeting place of the City Council, being the Council Chambers located at 276 Fourth Street, Chula Vista, California, the City Council will hold a public hearing to consider this Resolution and to consider the approval of the modification of the Existing Improvement Area B RMA. At such time and place all interested persons or taxpayers for or against the approval of the modification of the Existing Improvement Area B RMA will be heard. At the above-mentioned time and place for public hearing any persons interested, including taxpayers and property owners may appear and be heard. The testimony of all interested persons for or against the modification of the Existing Improvement Area RMA will be heard and considered. Any protests may be made orally or in writing. However, any protests pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly set forth the irregularities and defects to which the objection is made. All written protests shall be filed with the city clerk of the city on or before the time fixed for the public hearing. Written protests may be withdrawn in writing at any time before the conclusion of the public hearing. If a written majority protest is filed against the modification of the Existing Improvement Area RMA, the proceedings shall be abandoned. SECTION 5. ELECTION. If, following the public heating described in the Section above, the City Council determines to approve the modification of the Existing Improvement Area B RMA, the City Council shall then submit the modification to the qualified electors of Improvement Area B of the District. If at least twelve (12) persons, who need not necessarily be the same twelve (12) persons, have been registered to vote within Improvement Area B for each of the ninety (90) days preceding the close of the public hearing, the vote shall be by registered voters of Improvement Area B, with each voter having one (1) vote. Otherwise, the vote shall be by the landowners of Improvement Area B who were the owners of record at the close of the subject heating, with each landowners or the authorized representative thereof, having one (1) vote for each acre or portion of an acre of land owned within Improvement Area B. SECTION 6. NOTICE OF PUBLIC HEARING. The City Clerk is hereby authorized and directed to give notice of such public hearing in the following manner: A Notice of Public Hearing shall be published pursuant to Government Code Section 6061 in a legally designated newspaper of general circulation with such publication to be completed at least seven (7) days prior to the date set for such public heating. SECTION 7. EFFECTIVE DATE. This Resolution shall become effective immediately upon its adoption. PREPARED BY: Clifford Swanson Director of Engineering APPROVED AS TO FORM BY: J:kattorney\reso\CFD06-1 reso of intent EXHIBIT A COMMUNITY FACILITIES DISTRICT NO. 06-1 (EASTLAKE - WOODS, VISTAS AND LAND SWAP) IMPROVEMENT AREA B MODIFIED RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FOURTH AMENDMENT TO THE AGREEMENT WITH McGILL MARTIN SELF, INC. FOR PROVIDING ADDITIONAL PROJECT MANAGEMENT AND SPECIAL TAX CONSULTANT SERVICES FOR THE CHANGE AND MODIFICATION OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE WOODS, VISTAS, AND LAND SWAP) AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City Council approved an agreemem with McGill Martin Self, Inc. by Resolution No. 2001-132 on May 8, 2001 for providing project management and special tax consultant services for the formation of Community Facility Districts for the financing of public Infrastructure for San Miguel Ranch Project and Village 6 of the Otay Ranch Project; and WHEREAS, the Original Agreement has been previously amended by a First Amendment dated May 7, 2002, approved by Resolution No. 2002-136 to provide additional work associated with Eastlake III (Woods, Vistas, and Land Swap); and WHEREAS, the Second Amendment dated August 27, 2002, approved by Resolution No. 2002-338 to add additional work associated with Otay Ranch Village 11; and WHEREAS, the Third Amendment dated September 10, 2002, approved by Resolution 2002-356 to add additional work associated with Village 6; and WHEREAS, the City is desirous of continuing to retain McGill Martin Self, Inc. to provide additional project management and special tax consultant services in connection with the modification of the Rate and Method of Apportionment for only Improvement Area B, related tables, spreadsheets, special tax calculations, as well as other documents regarding Improvement Area B only (Land Swap area); and WHEREAS, staff recommends that the City's consultant selection process be waived in the · That possesses extensive knowledge and experience in their respective fields, · That has mastered a unique understanding of the development issues in the City of Chula Vista, · That has proven its credibility with the bond market by providing support to successful bond offerings for existing projects. NOW, THEREFORE, the City Council of the City of Chula Vista, California, does hereby waive the consultant selection process for the reasons set forth above and approve the Fourth Amendment to the Agreement with McGill Martin Self, Inc. for providing additional Project Management and Special Tax Consultant services for the formation of Community Facilities District No. 06-I (Eastlake Woods, Vistas, and "Land Swap"), a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said agreement. Presented by: Clifford Swanson Director of Engineering J:\attorney\McGill Martin 4th Amend 061 Approved as to form by: ~torney 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 FOURTH AMENDMENT TO THE AGREEMENT WITH MCGILL, MARTIN SELF, INC. FOR PROVIDING ADDITIONAL PROJECT MANAGEMENT AND SPECIAL TAX CONSULTANT SERVICES FOR THE CHANGE AND MODIFICATION OF CFD 06-I Fourth Amendment to Agreement between City of Chula Vista and McGill Martin Self, Inc. for Project Management and Special Tax Consultant Services for Community Facility Districts for Infrastructure Financing This Fourth Amendment to the agreement approved by City Council pursuant to Resolution number 2001-132 is made between the City of Chula Vista ("City") and McGill Martin Self, Inc. ("Consultant") with reference to the following facts: Recitals Whereas, the City Council of Chula Vista, by Resolution 2001-132 on May 8, 2001, approved an Agreement ("Original Agreement") with Consultant to provide project management and special tax consultant services in order to ensure the timely formation of Community Facility Districts for the financing of public infrastructure for the San Miguel Ranch Project and Village 6 of the Otay Ranch Project; and Whereas, the Original Agreement has been previously amended by a First Amendment dated May 7, 2002, approved by Resolution No. 2002-136 to provide additional work associated with Eastlake III (Woods, Vistas, and Land Swap), a Second Amendment dated August 27, 2002, approved by Resolution No. 2002-338 to add additional work associated with the Otay Ranch Village 11, and a Third Amendment dated September 10, 2002, approved by Resolution No. 2002- 356 to add additional work associated with Village 6; and Whereas, Consultant has previously provided project mai~agement and special tax consultant services to the City pertaining to the formation of Community Facility District No. CFD 06I (Eastlake III-Woods, Vistas, and Land Swap areas) for the purpose of financing infrastructure serving the Eastlake II1 and Eastlake Land Swap projects, including issuance of Bonds; and Whereas, the Eastlake Company has requested that the City process a change and modification to Community Facility District No. CFD-06I in order to adjust the Rate and Method of Apportionment within Improvement Area B of said CFD and other associated documents to reflect the prepayment of the special tax levied on certain conmaercial parcels; and Whereas, it has also been determined that a parcel intended to have been included in Improvement Area B of said CFD 06I was inadvertently omitted from said CFD and Improvement Area B and the City desires to initiate proceedings to annex such parcel to said CFD and hnprovement Area B; and Whereas, 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; and I "7' Whereas, the City is desirous of continuing to retain McGill Martin Self, Inc. to provide additional project management and special tax consultant services in connection with the change in proceedings to consider the modification of Community Facility District No. CFD-06-I for the financing of public infrastructure improvements associated with Eastlake's Land Swap areas; and Whereas, the Parties desire to amend the Original Agreement to add Exhibits A-1 for Amending CFD 06I, and that all other terms and provisions of the Original Agreement remain in full force and effect. NOW, THEREFORE, BE IT RESOLVED that the Parties agree to amend the Original Agreement as follows: 1. Consultant shall perform all of the services described in the attached Exhibit A- 1; and 2. All the other terms and provisions of the Original Agreement remain in full force and effect. NEXT PAGE IS SIGNATURE PAGE 2 Signature Page to Fourth Amendment to Agreement between City of Chula Vista and McGill Martin Self, Inc. for Project Management and Special Tax Consultant Services for Community Facility Districts for Infrastructure Financing IN WITNESS WHEREOF, City and Consultant have executed this Fourth Amendment to the Original 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 C. Padilla, Mayor Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: Exhibit List to Agreement (X) Exhibit A- 1. ~artin S elf,~In//.~ ~ .~' Michael R. McG-~ll/C~ ~ ~"7'7 President 3 (x) () () Exhibit A- 1 to Agreement between City of Chun Vista and McGill Martin Self, Inc. Effective Date of Agreement: City-Related Entity: ("City") 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: Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: McGill Martin Self, Inc. 344 "F" Street, Suite 100 Chula Vista, CA 91910 Chula Vista Office (619) 425-1343 Fax Phone (619) 425-1357 Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Place of Business, Telephone and Fax Number of Consultant: McGill Martin Self, Inc. Corporate Office 1500 Newell Avenue, Suite 700 4 Walnut Creek, California 94596-5180 Voice Phone (925) 988-9188 Fax Phone (925) 988-0170 7. General Duties: Adjust the Rate and Method of Apportionment within Improvement Area B, annex certain territory into Improvement Area B, modify the Acquisition/Finance Agreement, the recordation of an amended Notice of Special Tax Lien, hold another public hearing and election, make adjustments to the Special Tax Report, as well as assistance in processing the prepayment of certain commercial (non-residential) land uses within Improvement Area B for Community Facilities District No. 06-I (CFD No. 06-I). 8. Scope of Work and Schedule: A. Detailed Scope of Work: The scope of work tasks have been arranged into two inter-dependent major components as follow: 8.A.1 Project Management Duties Assist in EastLake's request to annex certain territory into CFD No. 06-I Improvement Area B. This proposed modification will adjust the related tables, spreadsheets, verification of special tax calculations, as well as other documents regarding Improvement Area B only (Land Swap area). Assist in EastLake's request to amend the proceeding of CFD No. 06-I to allow the prepayment of certain commercial (non-residential) land uses within Improvement Area B. This proposed modification will adjust the Rate and Method of Apportionment for only Improvement Area B, related tables, spreadsheets, special tax calculations, as well as other documents regarding Improvement Area B only (Land Swap area). · Act as the interface between the developers and the City for resolution of issues including: Annexation proceedings Structure of the annexation exhibit and recording related documents Modification proceedings DIF credits and Non - DIF improvements analysis Schedules, timing of critical dates, and information Structure of the amended Acquisition/Finance Agreement Structure of the amended Rate and Method of Apportionment Coordination with the finance team and City of Chula Vista Amendment of related documents, as required · Prepare Council Agenda Statements as requested to the satisfaction of the Director of Engineering. MMS to attend City Council meetings and be prepared to present information and answer questions regarding the district amendment and intent. · Monitor and resolve issues, coordinate meetings, relate project progress and decisions, and report thereon to the Director of Engineering, as applicable. · Facilitate proposed amendments with the finance team. · Prepare revised document tables and other information required by the finance team and/or the City staff. · Assist the City Clerk in handling and processing of the required election materials, ballots, notifications, letters, etc. 8.A.2 Special Tax Consultant Duties: · Act as the Special Tax Consultant, to prepare a modified Special Tax Report, collect available data and review proposed changes, analyze, and modify related documents (i.e. cost estimates, Notice of Special Tax Lien, resolutions, required attachments, etc.). · Identify and provide analysis for the modification and annexation to Improvement Area B, related to residential units, commercial acreages/square footages, TDIF obligations, special tax considerations, associated tables, and other supporting elements. · Coordinate with legal counsel and record the revised Notice of Special Tax Lien and annexation documents for Improvement Area B. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Consultant shall complete all work excluding audit services three months after the Date of Commencement, unless otherwise approved by the Director of Engineering. D. Date for completion of all Consultant services: Same as above 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 11. Materials Required to be Supplied by City to Consultant: N/A 6 12. Compensation: 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: Single Fixed Fee Amount: $ , payable as follows: (~) Milestone or Event or Deliverable: _Milestone, Event or Deliverable: Amount or Percent of Fixed Fee: $ $ $ A. ( ) 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 £ree 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 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. 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 l. 2. 3. Fee for Said Phase $ $ $ 7 ( ) 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, thc 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 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. (X) 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: 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 for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $10,500 for project management, $8,500 for special tax consultant, and $1200 for reimbursement of out of pocket expenses in accordance with paragraph 13 for a total compensation of $20,200.00 ("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. The Consultant will invoice the City on a monthly basis. Project costs will be billed on a time and materials basis in accordance with the below Charge Rate Schedule. The Consultant will not exceed the above budgets without authorization from the City. A request for additional funds would only occur in the case of extreme delays in document submittals, data retrieval, conflicts, audits etc. 8 Category of Employee of Consultant Charge Rate Schedule Name Hourly Rate Senior Principal Principal: Engineering/Land Planning/Surveying/Economics Manager: Engineering/Land Planning/Surveying/Economics Senior Professional* Associate Professional* Assistant Professional* Senior Designer Para Professional/Computer Technician Secretary/Clerk $175.00 $165.00 $140.00 $130.00 $120.00 $105.00 $ 90.00 $ 75.00 $ 60.00 * Applies for all professional staff: Engineers, Planners, Economists, Surveyors, Architects, and Landscape Architects. 13. 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: (~) None, the compensation includes all costs. ~) Copies, travel, data purchases, other expenses not to exceed $ : ( ) Copies, not to exceed $ : Cost or Rate (_) Travel, not to exceed $ : ( ) Printing, not to exceed $__: ( ) Postage, not to exceed $ : ( ) Delivery, not to exceed $__: (_) Long Distance Telephone Charges, not to exceed $ (X) Other Actual Identifiable Direct Costs: Recording fees, postage, and large reproduction services will be billed at cost, not to exceed $1200: , not to exceed $ : 14. Contract Administrators: City: Sohaib AI-Agha, Deputy Director of Engineering Consultant: Greg Mattson, VP McGill Martin Self, Inc. 344 "F" Street, Suite 100 Chula Vista, CA. 92101 Phone (619) 425-1343 FAX 619) 425-1357 15. Liquidated Damages Rate: NA $ per day. Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: Not Applicable. Not an FPPC Filer. (X) FPPC Filer Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. (X) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. (X) 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. (X) 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: 10 17. O Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: 19. Bill Processing: A Consultant's billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) O Quarterly C_) Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month ~ 15th Day of each Month (~ End of the Month ~ Other: C City's Account Number: 00891-2751/05091754-810000 20. Security fbr Performance (~) 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: (~) Retention Percentage: % (__) Retention Amount: $ __ Retention Release Event: (_) Completion of All Consultant Services (~0 Other: J:\Engin¢c~\I,ANDDEV\CFD's\CFD Cot~sullant Agreements\MMS 4th Amendment.doc II RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FIFTH AMENDMENT TO THE AGREEMENT WITH BEST, BEST AND KRIEGER, LLP, FOR PROVIDING ADDITIONAL LEGAL COUNSEL SERVICES FOR THE CHANGE AND MODIFICATION OF COMMUNITY FACILITIES DISTRICT NO. CFD-06I (EASTLAKE WOODS, VISTAS, AND LAND SWAP) AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Best, Best and Krieger, pursuant to an agreement approved by City Council Resolution No. 2002-063, has been providing special tax legal counsel services, necessary for the formation of many Maintenance Community Facilities Districts within the City of Chula Vista; and WHEREAS, the scope of their services included in the original agreement was to provide special tax legal counsel services for the formation of Maintenance Community Facilities Districts for Eastlake III Woods & Vistas, McMillin Company Village 6, Otay Ranch Village 6, Brookfield- Shea-Otay Village 1 l, Village 12 Freeway Commercial and Eastlake Land Swap Parcel, pursuant to the "Mello-Roos Community Facilities Act of 1982"; and WHEREAS, staff is recommending that the consultant's agreement be amended to provide additional legal counsel services required for the change and modifications of Community Facilities District No. CFD-06I (EastLake Woods, Vistas, and Land Swap); and WHEREAS, staff recommends that the City's consultant selection process be waived in the in the interest of providing a consultant: ,, That has previously provided consultant services to the City pertaining to the formation of CFD 06I (Eastlake- Woods, Vistas, and Land Swap areas), · That has demonstrated an ability to work together efficiently on past projects, · That possesses extensive knowledge and experience in their respective fields, · That has mastered a unique understanding of the development issues in the City of Chula Vista, · That has proven its credibility with the bond market by providing support to successful bond offerings for existing projects. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista, does hereby waive the consultant selection process for the reasons set forth above and approve the Fifth Amendment to the Agreement with Best, Best and Krieger, LLP for providing additional legal counsel services for the change and modification of Community Facilities District No. 061 (EastLake Woods, Vistas, and Land Swap), a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said amendment on behalf of the City. Presented by: Approved as to form by: Clifford T. Swanson Director of Engineering City Attorney THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORiM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL City Attorney FIFTH AMENDMENT TO THE AGREEMENT WITH BEST, BEST AI~D KRIEGER, LLP, FOR PROVIDING LEGAL COUNSEL SERVICES FOR THE CHANGE AND MODIFICATION OF CFD 06-I Fifth Amendment to Agreement between City of Chula Vista and Best Best & Krieger LLP for Bond Counsel Services Related to Various Financings This Fifth Amendment is entered into effective as of March 4, 2003 ("Effective Date") by and between the City of Chula Vista ("City") and Best Best & Krieger LLP ("Consultant") with reference to the following facts: Recitals Whereas, the City Council of Chula Vista, by Resolution 19388 on March 16, 1999, approved an Agreement ("Original Agreement") with Brown Diven Hessell & Brewer LLP to provide legal counsel services associated with Infrastructure Financing Districts within the Otay Ranch Territory; and Whereas, the Original Agreement has been previously amended by a First Amendment dated May 16, 2000, approved by Resolution No. 2000- ! 58 to provide for additional work associated with Otay Ranch territory and Sunbow II, a Second Amendment dated September 12, 2000, approved by Resolution No. 2000-320 to replace Brown Diven Hessell & Brewer LLP with Best Best & Krieger LLP, a Third Amendment dated February 27, 2001, approved by Resolution No. 2001-041 to provide for additional work associated with refinancing of outstanding debt of existing assessment or community facility districts, and a Fourth Amendment dated April 10, 2001, approved by Resolution 2001-102 to provide for additional work associated with any other developing area of the City; and Whereas, Consultant has previously provided legal counseling services to the City pertaining to the formation of Community Facility District No. CFD 061 (Eastlake III-Woods, Vistas, and Land Swap areas) for the purpose of financing infrastructure serving the Eastlake HI and Eastlake Land Swap projects, including issuance of Bonds; and Whereas, the Eastlake Company has requested that the City process a change and modification to Community Facility District No. CFD-06I in order to adjust the Rate and Method of Apportionment within Improvement Area B of said CFD and other associated documents to reflect the prepayment of the special tax levied on certain commercial parcels; and Whereas, it has also been determined that a parcel intended to have been included in Improvement Area B of said CFD was inadvertently omitted from said CFD and Improvement Area B and the City desires to initiate proceedings to mmex such parcel to said CFD and Improvement Area B; and Whereas, 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; and Whereas, the City is desirous of continuing to retain Best Best & Krieger LLP to provide additional legal counsel services in connection with (a) the change in proceedings to consider the modification of Community Facility District No. CFD 06-I for the financing of public infrastructure improvements associated with Eastlake's Land Swap areas and (b) the annexation of certain property to CFD 061 and Improvement Area B thereto, since this Consultant and City have previously agreed that Consultant would provide legal services appurtenant to the formation of CFD 061; and Whereas, the Parties desire to amend the Original Agreement to add Exhibit A-1 to Amend CFD 06I. NOW; THEREFORE, BE IT RESOLVED that the Patties agree to amend the Original Agreement as follows: Consultant shall perform all of the services described in the attached Exhibit A-1; and All the other terms and provisions of the Original Agreement and all amendments thereto not specifically modified by this Fifth Amendment shall remain in full force and effect. NEXT PAGE IS SIGNATURE PAGE 2 Signature Page to Fifth Amendment to Agreement between City of Chula Vista and Best Best & Krieger LLP For Bond Counsel Services Related to Various Financings 1N WITNESS WHEREOF, City and Consultant have executed this Fifth Amendment to the Original 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 C. Padilla, Mayor Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: Exhibit List to Agreement (X) Exhibit A- 1. Best Be st~~ (x) () () Exhibit A-1 to Agreement between City of Chula Vista and Best Best & Krieger LLP 1. Effective Date of Fifth Amendment dated March 18, 2003. City-Related Entity: ("City") 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: Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: Best Best & Krieger LLP 402 West Broadway, 13~h Floor San Diego, CA 92101-3542 Voice Phone (619) 525-1337 Fax Phone (619) 233-6118 Business Foim of Consultant: ( ) Sole Proprietorship (X) Partnership ( ) Corporation Place of Business, Telephone and Fax Number of Consultant: Best Best & Krieger LLP 402 West Broadway, 13th Floor San Diego, CA 92101-3542 Voice Phone (619) 525-1337 Fax Phone (619) 233-6118 7. General Duties: Legal counsel services associated with the proposed changes and modifications to the Rate and Method of Apportionment of special tax for Improvement Area B, the Acquisition/Finance Agreement, and adjustments to the Special Tax Report, as well as any assistance required for processing the prepayment of certain commercial (non-residential) land uses within Improvement Area B for Community Facilities District No. 06-1 (Eastlake~Woods, Vistas, and Land Swap) all to the satisfaction of the Director of Engineering. 8. Scope of Work and Schedule: A. Detailed Scope of Work: 8.A.1 Such services as to the proceedings related to (a) the change and modification of the rate and method of apportionment of the special tax for Improvement Area B of CFD 06I (the "Modification Proceedings") and (b) the annexation o fa parcel (APN 643-020-056) to CFD 06I and Improvement Area B (the "Annexation Proceedings") thereto shall include: · Preparation of all resolutions, notices, and other documents required in the Modification Proceedings and the Annexation Proceedings; · Examination of the Modification Proceedings and the Annexation Proceedings, step-by-step, as undertaken by CFD No. 06I; · Review of the modified rate and method of apportionment of special tax for the Modification Proceedings to ensure that such rate and method conforms to requirements of existing law; · Attend meetings with City staff, the special tax consultant and/or the representatives of the property owner at which the Modification Proceedings and/or the Annexation Proceedings are discussed; ,, Attend meetings of the City Council at which the City Council will be asked to take action pertaining to the Modification Proceedings and/or the Annexation Proceedings; · Assist in any election procedure necessary to approve the modification of the rate and method of apportiorunent of the special tax and the annexation of territory to CFD No. 061; and · Provide instruction and advice to the City and its staff in connection with any of the foregoing. 9. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: B. Date for completion of all Consultant services: Consultant shall complete all work six months after the Date of Commencement, unless otherwise approved by the Director of Engineering. 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance including Automobile Liability: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 11. Materials Required to be Supplied by City to Consultant: N/A 12. Compensation: 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: Single Fixed Fee Amount: $ , payable as follows: Milestone or Event or Deliverable: Milestone, Event or Deliverable: Amount or Percent of Fixed Fee: $ $ $_ A. ( ) 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 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 6 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. $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a pementage 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 Cityifthe 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 pementage 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 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. (X) 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: 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 for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). · (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $10,000 for legal counsel services, and $750for reimbursement of out-of-pocket expenses in accordance with paragraph 13 for a total compensation of $10,750.00 ("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. The Consultant will invoice the City on a monthly basis. Project costs will be billed on a time and materials basis in accordance with the below Charge Rate Schedule. The Consultant will not exceed the above budgets without authorization from the City. A request for additional funds would only occur in the case of extreme delays in document submittals, data retrieval, conflicts, audits etc. Category of Employee of Consultant Charge Rate Schedule Hourly Name Rate Partner $195.00 Associates $125.00-185.00 Paralegals $130.00 13. 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: (~) None, the compensation includes all costs· O Copies, travel, data purchases, other expenses not to exceed $ : ( ) Copies, not to exceed $ : Cost or Rate (~) Travel, not to exceed $ : ( ) Printing, not to exceed $ : ( ) Postage, not to exceed $ : ( ) Delivery, not to exceed $__ : O Long Distance Telephone Charges, not to exceed $ (X) Other Actual Identifiable Direct Costs: Document production and reproduction, travel, telecommunications, messenger services, and other document preparation and delivery services will be billed at cost, not to exceed $750 8 14. Contract Administrators: City: Sohaib A1-Agha, Deputy Director of Engineering Consultant: Warren Diven, Counsel Best Best & Krieger LLP 402 West Broadway, 13th Floor San Diego, CA 92101-3542 Voice Phone (619) 525-1337 Fax Phone (619) 233-6118 15. Liquidated Damages Rate: NA $ per day. Other: 16. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ( X ) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer Category No. 1. Investments and soumes of income. O 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 soumes 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: 17. (~O Consultant is Real Estate Broker and/or Salesman 18. Permitted Subconsultants: N/A 19. Bill Processing: A Consultant's billing to be submitted for the following period of time: (X) Monthly (The City will use its best effort to remit payments within 30 days) (~) Quarterly ~ Other: Completion of B Day of the Period for submission of Consultant's Billing: (X) First of the Month (~) 15th Day of each Month (~ End of the Month (~0 Other: C City's Account Number: 00891-2751/05091754-810000 20. Security for Performance ~ Performance Bond, $ (_~ Letter of Credit, $ ~O Other Security: Type: Amount: $ (~0 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: ~ Retention Percentage: (__) Retention Amount: $ Retention Release Event: 10 (~) Completion of All Consultant Services (__) Other: J:\Engineer\LANDDEV~CFD's\CFD Consultant Agreemen~Best & Kheger Amendment 5.doc 11 Item 2~ Meeting Date 3/25/03 COUNCIL AGENDA STATEMENT ITEM TITLE: A) Resolution of the City Council of the City of Chula Vista, California, acting in its capacity as the legislative body of Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap), declaring its intention to authorize the annexation of territory to such Community Facilities District and Improvement Area B thereto. B) Resolution of the City Council of the City of Chula Vista, California, acting in its capacity as the legislative body of Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap), adopting an annexation map showing property proposed to be annexed to such Community Facilities District and Improvement Area B thereto. SUBMITTED BY: REVIEWED BY: Director of Engineerin~ City Manager,9~ .ff (4/5ths Vote: Yes No 3D The EastLake Company, LLC has submitted a letter dated March 10, 2003, (Exhibit A) requesting the City to conduct annexation proceedings for a certain assessor's parcel into Community Facilities District No. 06-I (CFD No. 06-I). This parcel will be annexed into the CFD No. 06-I and into Improvement Area B the Land Swap area. The parcel is described as a 6.87 acre piece that is part of the proposed affordable housing land use within Improvement Area B ofCFD No.06-I. Tonight's action is to initiate proceedings to annex this particular parcel into the CFD No. 06-1. RECOMMENDATION: That Council: 1. Approve the resolution declaring the intention to authorize the annexation of temtory to Community Facilities District No. 06-1 (EastLake - Woods, Vistas and Land Swap). 2. Approve the resolution adopting the annexation map showing property to be annexed to Community Facilities District No. 06-1 (EastLake - Woods, Vistas and Land Swap). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In mid-2002, the City Council approved resolutions to establish, adopt a boundary map, authorization of a special tax levy, and ordering the preparation of a Special Tax Report for the Community Facilities District No. 06-I (CFD No. 06-1). The intent of CFD No. 06-I is to fund the construction and/or acquisition of certain public improvements serving the EastLake'sWoods, Vistas, and Land Swap properties of CFD No. 06-I has been broken into two Improvement Areas A Page 2, Item __ Meeting Date 3/25/03 and B. The annexation request is related to only Improvement Area B and will have no affect on Improvement Area A or the Bonds that have been sold. The annexation will add approximately 6.87 acres to the CFD No. 06-I, but have no affect on the Rate and Method of Apportionment, since the acreage, units, and uses have been previously included within the City Council proceedings. The residential units will be subject to the special provisions of the amended Rate and Method of Apportionment currently being processed with this annexation request. Staff, the legal counsel, the special tax consultant and the City's finance team have reviewed the proposed annexation and its relationship to the previously approved documents and consider this annexation ready for council approval. Resolutions There are two resolutions on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION DECLARING ITS INTENTION to authorize the annexation of territory to Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap) The RESOLUTION ADOPTING AN ANNEXATION MAP showing property to be annexed to Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap) Future Actions Adoptions of tonight's resolutions will set the public hearing for May 6, 2003. There will be an election following the public hearing for the landowners to vote on the annexation into Improvement Area B that same night. Once the votes are cast, the City Clerk will be request to come back to Council to announce the balloting. Fiscal Iml~act All costs related to this annexation proceeding for CFD No. 06-I are being borne by the developer. Exhibits: A. March 10, 2003 - Annexation request letter B. CFD No. 06-I Annexation Map J:~Eng/ne~r~AGENDA\CAS annexation 3454)3.doc M~rch 10, 2003 Mr. Cliff Swanson Director of Engineering City Of Chula Vista 276 Fovrth Av~nn¢ Chula Vista, CA 91910 ~ANY, LLC RE: Annexation request for 6.87 acres into Commumty Fac/lities District No. 06I and 07M Dear Cliff: Assessors Parcel Number 6a3-O2IL056 is a 6.87 acre parcel located within the boundaries oftbe F_~'tLake C, reuns SPA along EastI.ake Parkway. Tiois parcel is part of EastLake's residential component slaled for affordable housing within commumty Facilities District No. 06! (CFD O61), lmprovengnt Axea B and Community Facilities District No. 07M (CID 0TM), Improvement Area No. 2. This parcel was not originally ineludad in ~ bonndahe~ of CFD 061 and 07M, but was pan ofth~ nrta'all CFD residential a~reage and unit counts as presented within t1~ existing documents that bevc been approved by tbe City of Cbula Vista to date. Please initiate thc process to annex tiffs pas¢cl into CID 06I and CFD 07M. It is our understanding that this annexation will require a parallel pmce.ss and public hearing, but ca~ move forward along with our previous request for a changc ofprocendings related to our commercial prepaymeat request (O6I) and thc redoctinn in ma/n~mmce area for 07M. We would l/kc tiffs proccss to move forward/n a tira~ly manner. Ifyoti have any questio~s, please don't besitatc to contact mc. Thank you. Vi~¢ Prcsidant cc: Lombardo Dctrinidad, City of Chula Vista Gregg Matson, McC_~I Man'~ Self; Inc. Lynn Crmber, Muni Finuncial Warren Divert, Best, Best & Krieger E¥ ~el'r '-F::n:p z~ 8 RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACT1NG IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, V1STAS AND LAND SWAP), ADOPTING AN ANNEXATION MAP SHOWING PROPERTY PROPOSED TO BE ANNEXED TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA B THERETO WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA. CALIFORNIA (the "City Council"), desires to initiate proceedings to annex territory to an existing Community Facilities District and Improvement Area No. 2 thereto pursuant to the terms and provisions of the "Mello-Roos Colnmunity Facilities Act of 1982', being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Article 3.5 thereof. The existing Community Facilities District has been designated as Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap) (the "District"); and, WHEREAS, there has been submitted a map entitled "Annexation Map No. 1 To Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap), City of Chula Vista, County Of San Diego, State Of California" (the "Annexation Map") showing the territory proposed to be annexed to the District and Improvement Area No. 2 thereto (the "Territory"). NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. The Annexation Map showing the Territory proposed to be annexed to the District and to improvement Area No. 2 thereto and to be subject to the levy of a special tax is hereby approved and adopted. SECTION 3. A certificate shall be endorsed on the original and on at least one (1) copy of Annexation Map, evidencing the date and adoption of this Resolution, and within fifteen (15) days after the adoption of the Resolution fixing the time and place of the heating on the intention to annex or extent of the annexation to the District and Improvement Area No. 2 thereto, a copy of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided for in Section 3111 of the Streets and Highways Code of the State of California. Presented by: Clifford Swanson Director of Engineering J:',attorney\reso\cfd\06[ annexation map Approved as to form by: Ann Moore City Attorney RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE - WOODS, VISTAS AND LANDSWAP), DECLARING ITS INTENTION TO AUTHORIZE THE ANNEXATION OF TERRITORY TO SUCH COMMUNITY FACILITIES DISTRICT AND IMPROVEMENT AREA B THERETO WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, ("City Council"). formed a Community Facilities District and designated two improvement areas therein including Improvement Area No. 2 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"). The Community Facilities District has been designated as Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap) (the "District"); and, WHEREAS, the City Council desires to initiate proceedings to consider the annexation of certain real property to the District (the "Territory") and Improvement Area No. 2 thereto; and WHEREAS, a map entitled "Annexation Map No. 1 to Community Facilities District No. 06-I (EastLake - Woods, Vistas and Land Swap), City of Chula Vista, County of Riverside, State of California" (the "Annexation Map") showing the Territory proposed to be annexed to the District and Improvement Area No. 2 thereto has been submitted, which map has been previously approved and a copy of the map shall be kept on file with the transcript of these proceedings; and WHEREAS, this City Council now desires to proceed to adopt its Resolution of Intention to annex the Territory to the District and/mprovement Area No. 2 thereto, to describe the territory included within existing District and Improvement Area No. 2 thereto and the Territory proposed to be annexed thereto, to specify the facilities to be financed from the proceeds of the levy of special taxes within the Territory, to set and specify the special taxes that would be levied within the Territory to finance such facilities, and to set a time and place for a public hearing relating to the annexation of the Territory to the District and Improvement Area No. 2 thereto. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are all true and correct. SECTION 2. Lezal Authority. These proceedings for armexation are initiated by this City Council pursuant to the provisions of and authorization contained in the Con~rnunity Facilities District Law. SECTION 3. lntcntion To Anncx; Dcscription Of Territory And The District. This legislative body hereby determines that the public convcnience and necessity requires that the Territory. be added to thc District and this City Council declares its intention to annex the Territory to the District and Improvement Area No. 2 thereto. A description of the Territory is as follows: All that property within the Territory proposed to be annexed to the District and Improvement Area No. 2 thereto, as such property is shown on the Annexation Map as previously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. A general description of the territory included in the District is hereinafter described as follows: Ail that property and territory as originally included within the District, as such property was shown on a map of the original District as approved by this City Council and designated by the name of the originaI District. A copy of such map is on file in the Office of the City Clerk and has also been filed in the Office of the County Recorder. SECTION 4. Facilities Authorized To Be Financed By The District. The facilities that are authorized to be financed by the District from the proceeds of special taxes levied within the District (the "Facilities") are generally described in Exhibit A attached hereto and incorporated herein by this reference. These same Facilities are proposed to be financed by the levy of special taxes within the Territory upon the annexation thereof to the District and Improvement Area No. 2 thereto. The District shall finance ali direct, administrative and incidental annual costs and expenses necessary to provide the Facilities. The Facilities authorized to be financed by the District from the proceeds of special taxes levied within District are the types of facilities to be provided in the Territory. If and to the extent possible the Facilities shall be provided in common within the District and the Territory. SECTION 5. Special Taxes. It is the further intention ofthis City Council body that, except where funds are otherwise available, a special tax sufficient to pay for the Facilities and related incidental expenses authorized by the Act, secured by recordation of a continuing lien against all non-exempt real propertyin the Territory, will be levied annually within the boundaries of such Territory. For further particulars as to the rate and method of apportionment of the proposed special tax, reference is made to Exhibit B (the "Rate and Method"), which is attached hereto and incorporated herein by this reference and which sets forth in sufficient detail the method of apportionment of such special tax to allow each landowner or resident within the proposed Territory to clearly estimate the maximum amount that such person will have to pay. 2 The special tax proposed to be levied within the Territory shall be equal to the special tax levied to pay for the Facilities in Improvement Area No. 2 of the District, except that a higher or lower special tax may be levied within the Territory to the extent that the actual cost of providing the Facilities in the Territory is higher or lower than the cost of providing those Facilities in Improvement Area No. 2 of the District. Notwithstanding the foregoing, the special tax may not be levied at a rate which is higher that the maximum special tax authorized to be levied pursuant to the Rate and Method. The special taxes, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collecl 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 Territory and used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within Improvement Area No. 2 of the District as a whole by more than 10 percent. This legislative body further authorizes that special taxes authorized to be levied within the Territory may be prepaid and satisfied by payment of the prepayment amount calculated pursuant to the Rate and Method. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the Territory 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. The maximum special tax rate authorized to be levied within Improvement Area No. 2 of the District shall not be increased as a result of the annexation of the Territory to the District and Improvement Area No. 2 thereto. SECTION 6. Public Hearine:. NOTICE IS GIVEN THAT ON THE 6th DAY OF MAY, 2003, AT THE HOUR OF 4:00 P.M., IN THE REGULAR MEETiNG PLACE OF THE CITY COUNCIL, BEiNG THE COUNCIL CHAMBERS OF THE CITY OF CHULA VISTA, 276 FOURTH AVENUE, CHULA VISTA, CALIFORNIA, A PUBLIC HEARING WILL BE HELD WHERE THIS CITY COUNCIL WILL CONSIDER THE AUTHORIZATION FOR THE ANNEXATION OF THE TERRITORY TO THE DISTRICT, THE PROPOSED RATE AND METHOD OF APPORTIONMENT OF THE SPECIAL TAX TO BE LEVIED WITHiN THE TERRITORY AND ALL OTHER MATTERS AS SET FORTH iN THIS RESOLUTION OF INTENTION. 3 AT SUCH PUBLIC HEARING. THE TESTIMONY OF ALL iNTERESTED PERSONS FOR OR AGAINST THE ANNEXATION OF THE TERRITORY OR THE LEVYING OF SPECIAL TAXES WITHIN THE TERRITORY WILL BE HEARD. PROTESTS AGAINST THE PROPOSED ANNEXATION OF THE TERRITORY, THE LEVY OF SPECIAL TAXES WITHIN THE TERRITORY OR ANY OTHER PROPOSALS CONTAINED IN THIS RESOLUTION MAY BE MADE ORALLY BY ANY INTERESTED PERSON. ANY PROTESTS PERTAINING TO THE REGULARITY OR SUFFICIENCY OF THE PROCEEDINGS SHALL BE IN WRITING AND SHALL CLEARLY SET FORTH THE IRREGULARITIES OR DEFECTS TO WHICH OBJECTION 1S MADE. ALL WRITTEN PROTESTS SHALL BE FILED WITH THE CITY CLERK PRIOR TO THE TIME FIXED FOR THE PUBLIC HEARING. WRITTEN PROTESTS MAY BE WITHDRAWN AT ANY TIME BEFORE THE CONCLUSION OF THE PUBLIC HEARING. SECTION 7. Majotitv Protest. If(a) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the District, (b) 50% or more of the registered voters, or six (6) registered voters, whichever is more, residing within the Territory, (c) owners of one-half or more of the area of land in the territory included in the District, or (d) owners of one-half or more of the area of land in the territory included in the Territory, file written protests against the proposed annexation of the Territory to the District and such protests are not withdrawn so as to reduce the protests to less than a majority, no further proceedings shall be undertaken for a period of one year from the date of the decision by the City Council on the issues discussed at the public heating. SECTION 8. Election. Upon the conclusion of the public hearing, if the legislative body determines to proceed with the annexation, a proposition shall be submitted to the qualified electors of the Territory. The vote shall be by registered voters within the Territory; however, if there are less than 12 registered voters, the vote shall be by landowners, with each landowner having one vote per acre or portion thereof within the Territory. SECTION 9. Notice. Notice of the time and place of the public hearing shall be given by the City Clerk by publication in a legally designated newspaper of general circulation, said publication pursuant to Section 6061 of the Government Code, with said publication to be completed at least seven (7) days prior to the date set for the public heating. Presented by: Approved as to form by: Clifford Swanson Director of Engineering J 9&tlorney,~reso\cfd\061 annex intent Ann Moore City Attorney 4 EXHIBIT A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I (EASTLAKE) LIST OF PROPOSED FACILITIES The developer is proposing the financing of backbone streets and associated improvements (i.e., grading, sewer, streets, landscaping, utilities), and certain "Traffic Enhancement" facilities. Following is a general description of the proposed facilities: Improvement Area A East Olympic Parkway West Olympic Parkway (Portion) Otay Lakes Road Proctor Valley Road Improvement Area B West Olympic Parkway (Portion) EastLake Parkway In addition to the above improvements, this CFD's bonding capacity maybe used for certain "Traffic Enhancement "facilities within the greater eastern territories of Chula Vista. These transportation facilities will be traffic capacity adding improvements and could include the following projects: · Telegraph Canyon Rd East of 1-805 · 1-805/Telegraph Canyon Road an additional on-ramp lane to 1-805 · Heritage Road (Olympic Parkway to Main Street) In addition to the above physical improvements, this CFD's bonding capacity maybe used for the purchase certain tangible maintenance equipment that has a useful life of five (5) years or more necessary to provided storm water discharge maintenance within each Improvement Area. J:\Engineer\AGENDA~Attachments\CAS EXHIBIT A - List of Facilities, 9-10-02.doc EXHIBIT AMENDED RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 06-I IMPROVEMENT AREA B (EastLake - "Land Swap") 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. 06-I, Improvement Area B ("Improvement Area B") and collected each Fiscal Year commencing in Fiscal Year 2003-2004 in an amount determined by the City Council through the application of the appropriate Special Tax for "Developed Property," and "Undeveloped Property" as described below. All of the Taxable Property in Improvement Area B, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meaning: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, parcel map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area shall be determined by the City Engineer. "Act" means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or reasonably estimated costs directly related to the administration of Improvement Area B 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-06-I or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD-06-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-06-I or any designee thereof related to any appeal of the levy or application of the Special Tax; and the costs associated with the release of funds from an escrow account, if any. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD-06-I for any other administrative purposes of Improvement Area B, including, but not limited to City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 1 attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of 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 of the County designating parcels by Assessor's Parcel number. "Assigned Special Tax" means the Special Tax for each Land Use Category of Developed Property as determined in accordance with Section C. 1 .a. "Available Funds" means the balance in the reserve fund established pursuant to the terms of the Indenture in excess of the reserve requirement as defined in such Indenture, delinquent Special Tax payments not required to fund the Special Tax Requirement for any preceding Fiscal Year, Special Tax prepayments collected to pay interest on Bonds, and other sources of funds available as a credit to the Special Tax Requirement as specified in such Indenture. "Backup Special Tax" means the Backup 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 by CFD-06-I for Improvement Area B under the Act. "Bond Year" means a one-year period beginning on September 2nd in each year and ending on September 1s~ in the following year. Unless defined differently in the applicable Indenture. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. "CFD-06-I means City of Chula Vista, Community Facilities District No. 06-I. "City" means the City of Chula Vista. "Commercial Property" means all Assessors' Parcels of Developed Property, for which a building permit(s) was issued for a non-residential use, excluding Community Purpose Facility Property. "Community Purpose Facility Property" means all Assessors' Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City, acting as the legislative body of CFD-06-I. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap 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. "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. "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. "Improvement Area B" means Improvement Area B of CFD No. 06-I known as the "Land Swap". "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. "Lot(s)" means an individual legal lot created by a Final Subdivision Map for which a building permit for residential construction has been or could be issued. "Master Developer" means the owner of the predominant amount of Undeveloped Property in Improvement Area B. "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. "Outstanding Bonds" mean all Bonds, which remain outstanding as defined in the Indenture. "Property Owner Association Property" means any property within the boundaries of Improvement Area B owned by or dedicated to a property owner association, including any master or sub-association. "Proportionately" means for Developed Property that the ratio of the actual Special Tax levy to the Assigned Special Tax or the Backup Special Tax is equal for all Assessors' City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 3 Parcels of Developed Property within Improvement Area B. For 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 within Improvement Area B. "Public Property" means any property within the boundaries of Improvement Area B that is owned by or dedicated to the federal government, the State of California, the County, the City or any other public agency. "Residential Property" means all Assessors' Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units. "Residential Floor Area" means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Residential Floor Area shall be made by the CFD Administrator by reference to appropriate records kept by the City's Building Department. Residential Floor Area for a residential structure will be based on the building permit(s) issued for such structure. "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 Improvement Area B to: (i) pay annual debt service on all Outstanding Bonds (as defined in Section A) due in the Bond Year beginning in such Fiscal Year; (ii) pay other periodic costs on Outstanding Bonds, including but not limited to, credit enhancement and rebate payments on Outstanding Bonds; (iii) pay Administrative Expenses; (iv) pay any amounts required to establish or replenish any reserve funds for all Outstanding Bonds in accordance with the Indenture; and (v) pay directly for acquisition and/or construction of public improvements which are authorized to be financed by CFD- 06-I provided that the inclusion of such amount does not cause an increase in the levy of Special Tax on the Undeveloped Property for Improvement Area B; less (vi) 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-06-I, Improvement Area B 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. Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 4 "Zone 3" means a specific geographic area as depicted in Exhibit A attached hereto. "Zone 4" means a specific geographic area as depicted in Exhibit A attached hereto. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year, all Assessor's Parcels of Taxable Property within, Improvement Area B shall be (a) categorized as being located in either Zone 3 or Zone 4, (b) classified as Developed Property or Undeveloped Property and (c) shall be subject to the levy of annual Special Taxes determined pursuant to Sections C and D below. Furthermore, all Developed Property shall then be classified as Residential or Commemial Property. C. MAXIMUM ANNUAL SPECIAL TAX RATE 1. Developed Property The Maximum Annual Special Tax for each Assessor's Parcel of Residential Property or Commercial Property shall be the greater of (1) the Assigned Special Tax described in Table 1 below or (2) the Backup Special Tax computed pursuant to b. below. a. Assi2ned Soecial Tax The Assigned Special Tax for each Assessor's Parcel of Developed Property is shown in Table 1. TABLE 1 Assigned Special Tax for Developed Property within Zone 3 and Zone 4 Land Use Class Description 1 Residential Property 2 Commercial Property Assigned Special Tax $0.74 per square foot of Residential Floor Area $6,000 per Acre b. Backuo Soecial Tax When a Final Subdivision Map is recorded within Zone 3 or Zone 4, the Backup Special Tax for Assessor's Parcels of Developed Property classified as Residential Property or Commercial Property shall be determined as follows: City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 5 For each Assessor's Parcel of Residential Property or for each Assessor's Parcel of 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 3 $20,563 x A L Zone 4 $6,667 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 Commercial Property or for each Assessor's Parcel of Undeveloped Property to be classified as Commercial Property within the Final Subdivision Map area, the Backup Special Tax shall be determined by multiplying $20,563 for Zone 3 and $6,667 for Zone 4 by the total Acreage of each Assessor's Parcels of the Commercial Property and Undeveloped Property to be classified as Commercial Property within the Final Subdivision Map area. Notwithstanding the foregoing, if Assessor's Parcels of Residential Property, Commercial 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 Parcels shall be recalculated to equal the amount of Backup Special Tax that would have been generated if such change did not take place. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 6 o Undeveloped Property The Maximum Annual Special Tax for each Assessor's Parcel classified, as Undeveloped Property shall be $20,563 per Acre for Zone 3 and $6,667 per Acre for Zone 4. 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 each Assessor's Parcel of Developed Property within Zone 3 and Zone 4 at a rate up to 100% of the applicable Assigned Special Tax to satisfy the Special Tax Requirement. Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property within Zone 3 and Zone 4, excluding any Assessor's Parcels classified as Undeveloped Property pursuant to Section E, at a rate up to 100% of the Maximum Annual Special Tax for Undeveloped Property. Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax to be levied on each Assessor's Parcel of Developed Property whose Maximum Annual Special Tax is derived by the application of the Backup Special Tax shall be increased Proportionately f~om the Assigned Special Tax up to the Maximum Annual Special Tax for each such Assessor's Parcel. Fourth: If additional monies are needed to satisfy the Special Tax Requirement after the first three steps have been completed, then the Special Tax shall be levied Proportionately on each Assessor's Parcel classified as Undeveloped Property pursuant to Section E 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 Assessor's Parcel. City of Chula Vista Community Facilities District No. 06-I, Improvement Area B EastLake - Land Swap Page 7 E. EXEMPTIONS The CFD Administrator shall classify the following Assessor Parcel(s) as exempt property: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility Property, and (iv) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; provided, however, that no such classification shall reduce the sum of all Taxable Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4. Assessor's Parcels which cannot be classified as exempt property because such classification would reduce the Acreage of all Taxable Property to less than 36.50 Acres in Zone 3 and 52.00 Acres in Zone 4 will be classified as Undeveloped Property and shall be taxed as such. Tax-exempt status for purposes of this paragraph will be assigned by the CFD Administrator in the chronological order in which property becomes exempt property. The Maximum Annual Special Tax obligation for any property which would be classified as Public Property upon its transfer or dedication to a public agency but which cannot be classified as exempt property as described in paragraph 1 of Section F shall be prepaid in full by the seller pursuant to Section I. 1, prior to the transfer/dedication of such property to such public agency. Until the Maximum Annual Tax obligation for any such Public Property is prepaid, the property shall continue to be subject to the levy of the Special Tax as Undeveloped Property. F. REVIEW/APPEAL COMMITTEE Any landowner or resident who feels that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the CFD Administrator), the landowner or resident believes such error still 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-06-I and a special three-member Review/Appeal Committee. The Review/Appeal Con~mittee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 8 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-06-I, Improvement Area B 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- 06-1 Improvement Area B. "CFD Public Facilities Costs" means either $12.3 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 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. City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 9 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 Public Property. The Maximum Annual Special Tax obligation applicable to such Assessor's Parcel may be fully prepaid and the obligation of the Assessor's Parcel to pay the Special Tax permanently satisfied as described herein; provided, 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. The Prepayment Amount (defined below) 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 Assessor's Parcels of Developed Property, compute the Maximum Annual Special Tax for the Assessor's Parcel to be prepaid. For Assessor's Parcels of Undeveloped Property for which a building permit has been issued to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel as though it was already designated as Developed Property, based upon the building permit issued for that Assessor's Parcel. For Assessor's Parcels of Public Property to be prepaid, compute the Maximum Annual Special Tax for that Assessor's Parcel using the Maximum Annual Special Tax for Undeveloped Property. Divide the Maximum Annual Special Tax computed pursuant to paragraph 1 by the sum of the total expected Maximum Annual Special Tax revenues which may be levied within Improvement Area B excluding any Assessors Parcels for which the Maximum Annual Special Tax obligation has been previously prepaid. City of Chula Vista Community Facilities District No. 06-L Improvement Area B EastLake - Land Swap Page 10 10. Multiply the quotient computed pursuant to paragraph 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 paragraph 3 by the applicable redemption premium on the next possible Bond call date, if any, on the Outstanding Bonds to be redeemed (the "Redemption Premium"). If all the Bonds authorized to be issued for Improvement Area B have not been issued, compute the Future Facilities Costs. Multiply the quotient computed pursuant to paragraph 2 by the amount determined pursuant to paragraph 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-06-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"). 11. 12. 13. 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 paragraphs 7 and 9 and subtract the amount computed pursuant to paragraph 11 (the "Defeasance Amount"). 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. City of Chula Vista Community Facilities District No. 06-I, Improvement Area EastLake - Land Swap Page 11 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 paragraph 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 paragraphs 3, 4, 6, 10, and 12, less the amounts computed pursuant to paragraphs 13 and 14 (the "Prepayment Amount"). 16. From the Prepayment Amount, the amounts computed pursuant to paragraphs 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 paragraph 10 shall be retained by CFD-06-I. The amount computed pursuant to paragraph 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 paragraph 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 Improvement Area B both prior to and after the proposed prepayment is at least 1.1 times the maximum annual debt service on all Outstanding Bonds. Tenders of Bonds in prepayment of Maximum Annual Special Taxes may be accepted upon the terms and conditions established by the Council pursuant to the Act. However, the use of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the Council. 2. Prepayment in Part The Maximum Annual Special Tax on an Assessor's Parcel of Developed Property or an Assessor's Parcel of Undeveloped Property for which a building permit has been issued City of Chula Vista Community Facilities District No. 06-1, Improvement Area B EastLake - Land Swap Page 12 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 Maximmn 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-06-I, Improvement Area B 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 2043-2044 Fiscal Year. J:\Engineer~AGENDA~Attachments\CFD No. 06-I Amended RMA clean Imp. B 5-6-03.doc Ot~ of Chula gists Communiiy Facilities District No. 06-1, Improvement Area B EastLate - Land Swap Page 13 COUNCIL AGENDA STATEMENT Item ~ Meeting Date 03/25/03 ITEM TITLE: Resolution Approving the Final Map for San Miguel Ranch Planning Area "E-2", Chula Vista Tract No. 99-04. Accepting on behalf of the City of Chula Vista, the various streets and easements, all as granted on said map, within said subdivision and approving the Subdivision Improvement Agreement for the completion of improvements required by said subdivision, and authorizing the Mayor to execute said agreement. Resolution Approving the Final Map Supplemental Subdivision Improvement Agreement for San Miguel Ranch Planning Area "E-2", Chula Vista Tract No. 99-04, requiring Developer to comply with certain unfulfilled conditions of Resolution No. 2000-068 and authorizing the Mayor to Execute Said Agreement Resolution Approving a Grant of Easemems and Maintenance Agreement, between NNP. Trimark San Miguel Ranch, LLC and City, regarding maintenance of private open space and facilities and authorizing the Mayor to execute said Agreement V SUBMITTED BY: Director of Engineering~ REVIEWED BY: City Manager ~'/ ~/ (4/5ths Vote: Yes No X ) On February 29, 2000, by Resolution No. 2000-068, the City Council approved a Tentative Subdivision Map for Chula Vista Tract 99-04, San Miguel Ranch. On August 7, 2001 by Resolution No. 2001-259, Council approved San Miguel Ranch Phases 1, 2 & 4 "A" Map No. 1. Tonight, City Council will consider the approval of Planning Area "E-2" final map within Phase 2 of San Miguel Ranch by the developer Altamira Development Company, L.L.C. RECOMMENDATION: That Council adopt the following: 1. Resolution approving the Final "B" Map & Subdivision Improvement Agreement. 2. Resolution approving the "B" Map Supplemental Subdivision Improvement Agreement. 3. Resolution approving the Grant of Easements and Maintenance Agreement. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable Page 2, Item '~I Meeting Date 03/25/03 DISCUSSION: The project is generally located south of Mount Miguel Road, southerly adjacent to Calle La Marina West, north of Proctor Valley Road and east of the proposed SR-125, within the area of San Miguel Ranch Phase 2. The "B" map for Planning Area "E-2" consists of 75 numbered lots (Single Family Detached units) and 1 lettered lot, totaling a gross area of 14.220 acres (see Exhibit 1). The final map has been reviewed by the Public Works Department and found to be in substantial conformance with the approved Tentative Map. Approval of the map constitutes acceptance by the City of all assignable and irrevocable general utility and access easements, tree planting and maintenance easements, sight visibility easements, and emergency and pedestrian access easements within the subdivision. Altamira Development Company, L.L.C., as subsequent and current owner of planning Area E-2 has executed the appropriate Subdivision Improvement Agreement, providing bonds to secure the construction of onsite facilities within the subdivision and a Supplemental Subdivision Improvement Agreement, which addresses several outstanding conditions of the tentative map. Parks The Master Developer (NNP Trimark San Miguel Ranch, LLC) has provided an Irrevocable Offer of Dedication of Fee Interest for its portion of the land acquisition obligation for community parks within San Miguel Ranch Phases 1, 2, & 4 "A" Map No. (Resolution No. 19210). All PAD fees have been paid. Pocket park (lot A on Exhibit 1) will be Home Owner's Association (HOA) ma'mtained. Traffic Cap There are currently 222 building permits issued. 892 EDU's. This is below the established development cap of Affordable Housing Under the City's Affordable Housing Program and based on a total of 1,394 residential housing units which are currently allowed to be constructed within San Miguel Ranch, the developer has an obligation to provide 70 units affordable to low income households and 70 affordable to moderate income households within the project. In order to ensure satisfaction of this obligation, an Affordable Housing Agreement for San Miguel Ranch was executed on August 7, 2001. As stipulated within the Affordable Housing Agreement, "prior to the approval of the Final Map involving the 892nd dwelling unit for the Project or prior to the issuance of the 360th building permit for the Project, whichever occurs first", the developer must submit a site plan application for Design Review Commission review and approval for a minimum of 48 low income units. At this time, the 489 approved dwelling units and the 222 building permits issued as of February 18, 2003 are below this affordable housing threshold. Page 3, Item - ~ Meeting Date 03/25/03 Grant of Easements and Maintenance Agreement There is no CFD for maintance within San Miguel Ranch, therefore San Miguel Ranch Master Developer NNP Trimark San Miguel Ranch LLC is responsible for all maintenance. The Maintenance Agreement establishes specific obligations and responsibilities of the developer which may later be transferred to the Home Owners Association, regarding the maintenance of private open space and facilities within the right of way. This agreement also grants non-City crews permission maintain parkways in the public right of way and storm drain inlets equip with water quality facilities. FISCAL IMPACT: None to the City. Developer has paid all costs associated with the proposed Final Map and agreement. Attachments: Exhibit 1: Plat - San Miguel Ranch Planning Area "E-2", Chula Vista Tract 99-04, location map. Exhibit 2: Developer's Disclosure Statements. J:\Engineer\LANDDEV\Projects\San Miguel Ranch\Neighborhood E-2\A113_SanMiguelRanch_E-2 b.doc CHULA VISTA TRACT NO. SAN MIGUEL RANCH PLANNING AREA "E-2" LOT 'B' MOUNT LOT '0~ LOT 'P" 99-04 EXt-q~':" / SCALE: 1"= 300' CA,~nLLO 63 LOT C} LOT HUNSAKER & ASSOCIATES SUR'v"EYING PH(858)558-4500. FX(858)551~1414 R:\O246\&Map\EXH FM PA £-2 COUNCIL.DWG£ 1275]Feb-ll-2003:15:49 - W.O. 270-$0 TUB 14:04 FAX 619 691 5171 CHULA VISTA ENGINEERING EXHIBIT.. City of Chula Vista Disclosure Statement [~002 Pursuant to Council Policy ] O1-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statern~'nt of disclosure of certain ownership or financial interests, payments, or campaign conu'ibutions for a City cfChula Vista election must be filed. The following infon'nation must be disclosed: List the names of all persons having a financial interest in thc property that is thc subject of the application or the contract, e.g., o~mer, applicant, contractor, subcontractor, material supplier. If any person* identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) emtity. I£any person* identified pursuant to (1) above is a non-profit organization or trust, llst the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before thc City in this matter? $. Has any person* associated with this contract had any financial dealings with an official*.*,.efthe City of Chula Vista as it relates to this contract within the past 12 months. Yes No ~/'. 03/11/2003 TUE 15:08 [TX/P,Z NO 7522] ~,,,,-~,. ..... ; -.~,:04 FAX 019 091 8171 CHULA VISTA ENGINEERING City of Chuia Vista Disclosure Statement ~003 briefly describe the nature of the financial interest the official** may have in this contract? Have you made a contribution of more than 51250 within the past twelve (12) months to a current member of the Chula Vista City Council? No 2~. Yes __ If yes, which Council member? Have you provided lnore than g340 (or an item of equivalent value) to an official** of the City of Chula Vista in the past twelve !12) months? (This includes being a source o£income, money to retire a legal debt, gift, loan, etc.) Yes ....No .~)~ If Yes, which official** and what was the nature of item provided? Date: Print or type nme of Contractor/Applicant Person is defined as: any individual, finn, co-partnership,joint venture, association, social club, fraternal organization, corporation, estate, trust, r~o,iver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as ~ unit. Official includes, but is not limited to: Mayor, Councll member, Plarming Commissioner, M~mber of a bom-d, eom_mission, or committee of the City, employee, or. staffmembers. J :x, Arttom =y~'=rr~d J~;closur= ~l~lcm~t 3-6-03 05/11/2003 TUE 15:05 ITX/RX NO 752g] RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP FOR SAN MIGUEL RANCH PLANNING AREA "E-2", CHULA VISTA TRACT NO. 99-04, ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA THE VARIOUS STREETS AND EASEMENTS, ALL AS GRANTED ON SAID MAP, WITHIN SAID SUBDIVISION, AND APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled Chula Vista Tract 99-04 SAN MIGUEL RANCH PLANNING AREA "E-2", and more particularly described as follows: Lot 4 of Chula Vista Tract No. 99-04, San Miguel Ranch Phases 1, 2 & 4 "A" Map No. 1, in the City of Chula Vista, County of San Diego, State of California, according to Map thereof No. 14261 fi]ed in the office of the San Diego County Recorder on August 21,200I. Area: 14.220 Acres Numbered Lots: 75 No. of Lots: 76 Lettered Lots: 1 is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the public the following streets: Corte Condesa, Corte Casfillo, Circulo Coronado and Plaza Kadie, all as shown on San Miguel Ranch Planning Area "E-2:" map within this subdivision. BE IT FURTHER RESOLVED that said Council accepts the sewer easement, sight visibility, tree planting and maintenance, general utility and access easements, all as shown on San Miguel Ranch Planning Area "E-2". BE IT FURTHER RESOLVED that said Council hereby acknowledges on behalf of the City of Chula Vista the Irrevocable Offer of Dedication of Fee Interest of Lot "A" for open sp.ace and other public purposes all as shown on San Miguel Ranch Plarming Area "E-2" map within said subdivision. :1_ BE IT FURTHER RESOLVED that the City Clerk of the City of Chula Vista is hereby authorized and directed to endorse upon said map the action of said Council; that said Council has approved said subdivision map. and that those certain streets and easements as granted in San Migue] Ranch Planning Area "E-2" within said subdivision are accepted on behalfofthe City of Chula Vista as hereinabove stated. BE IT FURTHER RESOLVED that City Clerk is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. BE IT FURTHER RESOLVED that that certain Subdivision Improvement Agreement dated the for the completion of improvements in said subdivision, a copy of which is on file in the office of the City Clerk, is hereby approved. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said agreement for and on behalf of the City of Chula Vista. Presented by Approved as to fom~ by Clifford Swanson Director of Engineering Ann MOore- City Attorney J:atlomey~reso',SMR Final Map Planning Area E-2 2 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 ~"Ann Moore City Attorney Dated: SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN MIGUEL RANCH PLANNING AREA E-2 CHULA VISTA TRACT NO. 99-04 Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Declarant SUBDIVISION IMPROVEMENT AGREEMENT THIS AGREEMENT, made and entered into this day of ,2003, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City", and ALTAMIRA DEVELOPMENT COMPANY, LLC, a California limited liability company, 11260 El Camino Real, Suite 200, San Diego, CA 92130-2647, hereinafter called "Subdivider" with reference to the facts set forth below, which Recitals constitute a part of this Agreement; RECITALS: WHEREAS, Subdivider is about to present to the City Council of the City of Chula Vista for approval and recordation, a final subdivision map of a proposed subdivision, to be known as SAN MIGUEL RANCH PLANNING AREA E-2 (CVT 99-04) pursuant to the provisions of the Subdivision Map Act of the State of California, and in compliance with the provisions of Title 18 of the Chula Vista Municipal Code relating to the filing, approval and recordation of subdivision map; and WHEREAS, the Code provides that before said map is finally approved by the Council of the City of Chula Vista, Subdivider must have either installed and completed all of the public improvements and/or land development work required by the Code to be installed in subdivisions before final maps of subdivisions are approved by the Council for purpose of recording in the Office of the County Recorder of San Diego County, or, as an alternative thereto, Subdivider shall enter into an agreement with City, secured by an approved improvement security to insure the performance of said work pursuant to the requirements of Title 18 of the Chula Vista Municipal Code, agreeing to install and complete, free of liens at Subdivider's own expense, all of the public improvements and/or land development work required in said subdivision within a definite period of time prescribed by said Council; and WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into this agreement wherein it is provided that Subdivider will q-lO install and complete, at Subdivider's own expense, all the public improvement work required by City in connection with the proposed subdivision and will deliver to City improvement securities as approved by the City Attorney; and WHEREAS, a tentative map of said subdivision has heretofore been approved, subject to certain requirements and conditions, as contained in Resolution No. 2000-068, approved on the 29th day of February, 2000 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improvement work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 01107-01 through 01107-08 inclusive, on file in the office of the City Engineer; and WHEREAS, an estimate of the cost of constructing said public improvements according to said plans and specifications has been submitted and approved by the City in the amount of EIGHT HUNDRED FIFTY-SIX THOUSAND DOLLARS AND NO CENTS ($856,000.00). NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS: 1. Subdivider, for itself and his successors in interest, an obligation the burden of which encumbers and runs with the land, agrees to comply with all of the terms, conditions and requirements of the Tentative Map Resolution; to do and perform or cause to be done and performed, at its own expense, without cost to City, in a good and workmanlike manner, under the direction and to the satisfaction and approval of the City Engineer, all of the public improvement and/or land development work required to be done in and adjoining said subdivision, including the improvements described in the above Recitals ("Improvement Work"); and will furnish the necessary materials therefore, all in strict conformity and in accordance with the plans and specifications, which documents have heretofore been filed in the Office of the City Engineer and as described in the above Recitals this reference are incorporated herein and made a part hereof. 2. It is expressly understood and agreed that all monuments have been or will be installed within thirty (30) days after the completion and acceptance of the Improvement Work, and that Subdivider has installed or will install temporary street name signs if permanent street name signs have not been installed. 3. It is expressly understood and agreed that Subdivider will cause all necessary materials to be furnished and all Improvement Work required under the provisions of this contract to be done on or before the second anniversary date of Council approval of the Subdivision Improvement Agreement. 4. It is understood and agreed that Subdivider will perform said Improvement Work as set forth hereinabove, or that portion of said Improvement Work serving any buildings or structures ready for occupancy in said subdivision, prior to the issuance of any certificate of clearance for utility connections for said buildings or structures in said subdivision, and such -2- certificate shall not be issued until the City Engineer has certified in writing the completion of said public improvements or the portion thereof serving said building or structures approved by the City; provided, however, that the improvement security shall not be required to cover the provisions of this paragraph. 5. It is expressly understood and agreed to by Subdivider that, in the performance of said Improvement Work, Subdivider will conform to and abide by all of the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. 6. Subdivider further agrees to furnish and deliver to the City of Cbula Vista, simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of FOUR HUNDRED TWENTY-EIGHT THOUSAND DOLLARS AND NO CENTS ($428,000.00) which security shall guarantee the faithful performance of this contract by Subdivider and is attached hereto, marked Exhibit "A" and made a part hereof. 7. Subdivider further agrees to furnish and deliver to the City of Chula Vista simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of FOUR HUNDRED TWENTY-EIGHT THOUSAND DOLLARS AND NO CENTS ($428,000.00) to secure the payment of material and labor in connection with the installation of said public improvements, which security is attached hereto, marked Exhibit "B" and made a part hereof and the bond mounts as contained in Exhibit "B", and made a part hereof. 8. Subdivider further agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this agreement, an approved improvement security fi.om a sufficient surety, whose sufficiency has been approved by the City in the sum of THIRTEEN THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($13,500.00) to secure the installation of monuments, which security is attached hereto, marked Exhibit "C" and made a part hereof. 9. It is further agreed that if the Improvement Work is not completed within the time agreed herein, the sums provided by said improvement securities may be used by City for the completion of the Improvement Work within said subdivision in accordance with such specifications herein contained or referred, or at the option of the City, as are approved by the City Council at the time of engaging the work to be performed. Upon certification of completion by the City Engineer and acceptance of said work by City, and after certification by the Director of Finance that all costs hereof are fully paid, the whole mount, or any part thereof not required for payment thereof, may be released to Subdivider or its successors in interest, pursuant to the terms of the improvement security. Subdivider agrees to pay to the City any difference between the total costs incurred to perform the work, including design and administration of construction (including a reasonable allocation of overhead), and any proceeds fi.om the improvement security. -3- 10. It is also expressly agreed and understood by the parties hereto that in no case will the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall any officer, his sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefore, except to the limits established by the approved improvement security in accordance with the requirements of the State Subdivision Map Act and the provisions of Title 18 of the Chula Vista Municipal Code. 11. It is further understood and agreed by Subdivider that any engineering costs (including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Improvement Work plans and installation of Improvement Work hereinabove provided for, and the cost of street signs and street trees as required by City and approved by the City Engineer shall be paid by Subdivider, and that Subdivider shall deposit, prior to recordation of the Final Map, with City a sum of money sufficient to cover said cost. 12. It is understood and agreed that until such time as all Improvement Work is fully completed and accepted by City, Subdivider will be responsible for the care, maintenance of, and any damage to, the streets, alleys, easements, water and sewer lines within the proposed subdivision. It is further understood and agreed that Subdivider shall guarantee all public improvements for a period of one year fi.om date of final acceptance and correct any and all defects or deficiencies arising during said period as a result of the acts or omission of Subdivider, its agents or employees in the performance of this agreement, and that upon acceptance of the work by City, Subdivider shall grant to City, by appropriate conveyance, the public improvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove. 13. It is understood and agreed that City, as indemnitee, or any officer or employee thereof, shall not be liable for any injury to person or property occasioned by reason of the acts or omissions of Subdivider, its agents or employees, or indemnitee, related to this agreement. Subdivider further agrees to protect and hold the City, its officers and employees, harmless from any and all claims, demands, causes of action, liability or loss of any sort, because of or arising out of acts or omissions of Subdivider, its agents or employees, or indemnitee, related to this agreement; provided, however, that the approved improvement security shall not be required to cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property fi.om owners of such adjacent or downstream properties as a result of the construction of said subdivision and the public improvements as provided herein. It shall also extend to damages resulting fi.om diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, or the modification of the point of discharge as the result of the construction and maintenance of drainage systems. The approval of plans providing for any or all of these conditions shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for the construction of the subdivision pursuant to said approved improvement plans. The provisions of this paragraph shall become effective upon the execution of this agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the improvements. -4- 14. Subdivider agrees to defend, indemnify, and hold harmless the City or its agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void, or annul, an approval of the City, advisory agency, appeal board, or legislative body concerning a subdivision, which action is brought within the time period provided for in Section 66499.37 of the Government Code of the State of California. 15. Assignability. Upon request of the Subdivider, any or all on-site duties and obligations set forth herein may be assigned to Subdivider's successor in interest if the City Manager in his/her sole discretion determines that such an assignment will not adversely affect the City's interest. The City Manager in his/her sole discretion may, if such assigmnent is requested, permit a substitution of securities by the successor in interest in place and stead of the original securities described herein so long as such substituted securities meet the criteria for security as set forth elsewhere in this Agreement. Such assignment will be in a form approved by the City Attorney. _s_ q-lq- SIGNATURE.PAGE SUBDIVISION IMPROVEMENT AGI~ Rrm, IENT SAN MIGUEL RANCH PLANN'ING AREA F_.-2 (orr 99-0~) IN WITNESS' WHEREOF, the parties hereto have Caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA Mayor of the City of Chula Vista ATTEST City Clerk Approved as to form by ALTAMIRA DEVELOPMENT COMPANY, LI;C TI a California limited liability company ~ By: Bole Alr~,'a II, LI~, a Cal~f,.,~,~ l~te~l lztabil:[ty ~: l~e C.~.~t_~es I~C, a c~ro~~a ~ted lt~l~ty c~, ~ City A~tomey (Attach Notary Acknowledgment) -6- 5]-/5 LIST OF EXHIBITS Exhibit "A" Exhibit "B" Exhibit "C" Improvement Security - Faithful Performance Form: Bond Amount: $428,000.00 Improvement Security - Material and Labor: Form: Bond Amount: $428,000.00 Improvement Security- Monuments: Form: Bond Amount: $13,500.00 Securities approved as to form and amount by City Attomey Improvement Completion Date: Two (2) years from date of City Council approval of the Subdivision Improvement Agreement. J:XArtomey~SIAXSan Miguel Area E-2 ACKNO'vVLEDGEMENT STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On March 6, 2003 before me, Jacqueline W. Aldridge, a Notary Public in and for said County and State, personally appeared ROBERT B. MONTGOMERY and ROBERT A. WYATT personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged m me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. COMM. ~ 252658 NOTARY PU~J~ My COMMISSION EXPIRES RESOLUTION NO.2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN M1GUEL RANCH PLANNING AREA "E-2". CHULA VISTA TRACT NO. 99-04, REQUIRING DEVELOPER TO COMPLY WITH CERTAIN UNFULFILLED CONDITIONS OF RESOLUTION NO. 2000-068 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer has executed a Supplemental Subdivision Improvement Agreement to satisfy remaining conditions of Resolution 2000-068. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Supplemental Subdivision Improvement Agreement for San Miguel Ranch Area "E-2", Chula Vista Tract No. 99-04, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by Clifford Swanson Director of Engineering Ann'Moor( City Attorney J:XATTORNEY\RESO\ssia SMR E-2 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: FINAL MAP SU}'PLEI~grAL. SUBDIVISION IMPROVEMENT AGREEMENT FOR SAN MIGUEL RANCH PLANNING AREA E-2~ CHULA VISTA TRACT NO. 99-04 RECORDING REQUEST BY: City Clerk WHEN RECORDED MAIL TO: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Developer Above Space for Recorder's Use S~ MIGUEL R~CH PLANNING AREA ~E-2" FINAL MAP SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT' (Conditions 10, 12, 40, 54, 57, 102, 103, 106, 109, 127, 138, 156, 179, and 187) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this __day of , 2002, by and between THE CITY OF CHLrLA VISTA, California ("City" or "Grantee" for recording purposes only) and Altamira Development Company, L.L.C., ("Developer" or "Grantor"), with reference to the facts set forth below, which recitals constitute a part of this Agreement: RECITALS A. This Agreement concerns and affects certain real property located in Chula Vista, California, more particularly described on Attachment "A" attached hereto and incorporated 9- herein ("Property"). The Property commonly known as Planning Area "E-2" of San Miguel Ranch is within approved Tentative Subdivision Map Chula Vista Tract 99-04, San Miguet Ranch, City Of Chula Vista, california (Resolution No. 2000-068 on February 29, 2000 the "Resolution" and Resolution No. 2001-453 on December 17 2001 the "Amendment"), which project is commonly known as San Miguel Ranch. For purposes of this Agreement the term "Project" shall also mean "Property". B. Developer and/or Developer's predecessor in interest has applied for and the City has approved Tentative Subdivision Map commonly referred to as Chula Vista Tract 99-04 San Miguel Ranch ("Tentative Subdivision Map") for the subdivision of the Property. C. The City has adopted Resolution No. 2000-068 ("Resolution") pursuant to which it has approved the Tentative Subdivision Map subject to certain conditions as more particularly described in the Resolution and amended said conditions via Resolution No. 2001-453 ("Amendment"). D. The City has adopted Resolution No. 2001-259 pursuant to which it has approved the San Miguet Ranch Phases t, 2, and 4 Supplemental Subdivision Improvement Agreement - A Map ("Previous Agreement") which touched and concerned the Property. E. City is willing, on the premises, security, terms and conditions herein contained to approve the final map for which Developer has applied as being in substantial conformance with the Tentative Subdivision Map described in this Agreement. Developer understands that subsequent final maps may be subject to the same security terms and conditions contained herein. F. The following defined terms shall have the meaning set forth herein, unless otherwise specifically indicated: a. "Developer" means the person, persons or entity having a legal or an equitable interest in the property or parts thereof and includes Developer's successors-in-interest and assignors of any property within the boundaries of the map. This includes Altamira Development Company, L.L.C. and any and all owners of real property within the boundaries of the Property, and all signatories to this Agreement. b. "Guest Builder" means those interest in the Property or a portion of final map has been recorded. entities obtaining any the Property, after the c. "PFFP" means the Public Facilities Financing Plan adopted by Resolution No. 19631 on October 19, 1999 and amended by Resolution No. 2001-453 ("Amendment") on December 17, 2001 and as may be further amended from time to time. NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as set forth below. 1. Agreement Applicable to Subsequent Owners. a. Agreement Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property as described on Attachment "A" until released by the mutual consent of the parties. For the purposes of this Agreement the "Developer" shall also mean "Applicant" b. Agreement Runs with the Land. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns and any successor in interest thereto. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties public or private, in whose favor and for whose benefit of such covenants running with the land have been provided without regard to whether City has been, remained or are owners of any particular land or interes~ therein. If such covenants are breached, the'City shall have the right to exercise al! rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this agreement and the covenants may be entitled. c. Developer Release on Guest Builder Assigrnnents. If Developer assigns any portion of the Project to a Guest Builder, Developer may request to be released from Developer's obligations under this Agreement, that are expressly assumed by the Guest Builder, provided Developer obtains the prior written consent of the City to such release. Such assignment to the Guest Builder shall, however, be subject to this Agreement and the Burden of this Agreement shall remain a covenant run~ing with the land. The City shall not withhold its consent to any such request for a release so long as the assignee acknowledges that the Burden of the Agreement runs with the land, assumes the obligations of the Developer under this Agreement, and demonstrates, to the satisfaction of the City, its ability to perform its obligations under this Agreement as it relates to the portion of the Project which is being acquired by the Assignee. d. Partial Release of Developer's Assignees. If Developer assigns any portion of the Project subject to the Burden of this Agreement, upon request by the Developer or its assignee, the City shall release the assignee of the Burden of this Agreement as to such assigned portion if such portion has complied with the requirements of this Agreement to the satisfaction of the City and such partial release will not, in the opinion of the City, jeopardize the likelihood that the remainder of the Burden will not be completed. e. Release of Individual Lots. Upon the occurrence of any of the following events, Developer shall, upon receipt of the prior written consent of the City Manager (or Manager's designee), have the right to release any lot(s) from Developer's obligation under this Agreement: i. The execution of a purchase agreement for the sale of a residential lot 'to a buyer of an individual housing unit; ii. The conveyance of a lot to a Homeowner's Association; iii. The conveyance of a school site as identified in the SPA Plan to a school district; The City shall not withhold its consent to such release so long as the City finds ~in good faith that such release will not jeopardize the City's assurance that the obligations set forth in this Agreement will be performed. At the request of the Developer, the City Manager (or Manager's designee) shall execute an instrument drafted by Developer in a recordable form acceptable to the City Manager (or Manager's designee), which confirms the release of such lot or parcel from the encumbrance of this Agreement. Notwithstanding the foregoing, at the close of an individual homeowner's escrow on any lot or parcel encumbered by this Agreement, such lot or parcel shall be automatically released from the encumbrance hereof. 2. Condition No. 10 (general Preliminary). In satisfaction of Condition No. 10 of the Resolution, the Developer agrees that if any of the terms, covenants or conditions contained herein shall 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 including issuance of building permits, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with conditions or seek damages for their violation. The Developer shall be notified 10 days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable and diligent time frame 3. Condition No. 12 - (general Preliminary). In satisfaction of Condition No. 12 of the Resolution, the Developer agrees that the Developer shall indemnify, protect, defend and hold the City harmless from and against any and all claims, liabilities and costs, including attorney's fees, arising from challenges to the Environmental Impact Report for the Project and any or all entitlements and approvals issued by the City in connection with the Project. 4. Condition No. 40 (ADA Standards). In satisfaction of Condition No. 40 of the Resolution the Developer agrees that in the event the Federal Government adopts "Americans with Disabilities Act" ("ADA") standards for street rights-of-way, which are in conflict with the standards and approvals contained herein, all such approvals conflicting with those standards shall be updated to reflect those standards. Unless otherwise required be federal law, City ADA standards may be considered vested, as determined by Federal Regulations, only after construction has commenced. 5. Condition No. 54 - Street Lights on Traffic Signal Standards). In partial satisfaction of Condition No. 54, the Developer shall construct and guarantee that street lights will be designed and constructed, all as more particularly set forth in paragraph 21 of the Previous Agreement, on traffic signal standards, and underground traffic signal equipment constructed, at locations as approved by the City Engineer on drawing numbers 00-041-40 thru 00-041-43. 6. Condition No. 57 - (Sewer and Water). In partial satisfaction of Condition No. 57, the Developer shall guarantee prior to the release of bonds for street improvements that the ~Engineer-of-Work" has clearly identified all sewer (S) and water (W) lateral locations prior to the construction of curbs so that the curb face can be stamped with an "S" and "W", for the sewer and water laterals, respectively, and the Developer shall propagate all curb face markings in order to assure that the locations of the said utilities are identifiable. 7. Conditions No. 102 and 106 - (HOA Maintenance). In partial satisfaction of Conditions No. 102 and 106, the Developer shall provide proof to the satisfaction of the City Engineer an~ Director of Planning and Building that all open space lots and improvements located on said lots will be incorporated into and maintained by a Home Owner's Association prior to the issuance of the last building permit for the Property. 8. Condition No. !03 (DG Walkways free from obstacles). In partial satisfaction of Condition No. 103 of the resolu[ion, the Developer hereby acknowledges and agrees that there shall be no vertical obstacles or any obstructions such as public utility vaults, boxes, etc. placed within the decomposed granite (D. G.) walkways within the project. In the event of any such obstruction placed within the walkways, Developer agrees to immediately remove such obstructions, upon request of the City. 9. Condition No. 109 (Walls within Open Space Maintenance Districts). In satisfaction of Condition No. 109 of the resolution the Developer agrees that walls which are located within the open space maintenance district shall have owners of adjoining lots sign a statement when purchasing their homes that they are aware that the wall is on Open Space property and that they may not modify or supplement the wall or encroach onto Open Space property. These restrictions shall also be reflected in the CC&R's for each lot, and a copy of said restrictions shall be provided to the City for its approval. 10. Condition No. 127 - (Neigb-borhood Park Plans). In partial satisfaction of Condition 127 of this resolution, Developer shall obtain Design Review approval of construction plans for the Private Neighborhood Park (Planning Area NP) by the Zoning Administrator prior to issuance of the first, building permit for production units in Neighborhood E-2. 11. Condition No. 138 - (Landscape Improvements). In satisfaction of Condition No. 138, prior to the Acceptance of improvements for any portion of Planning Arsa ~E-2", the Developer shall install landscaping planting and irrigation improvements for Lot E-2-A to the satisfaction of the Director of Planning and Building. 12. Condition No. 156 (Landscaping Plans). In partial satisfaction of Condition No. 156 of the Resolution, Developer shall provide a landscaping plan for the Property, prior to issuance of the first building permit for the Property, showing that all single family residential lots have been designed to accommodate a 5~' X 5~' (30.25 sq. ft.) tree planting area within the street tree easement clear of utility lines, boxes, and similar obstructions. 13. Condition No. 179 (National Pollutant Discharge Elim/nation System). In partial satisfaction of Condition No. 179 of the Resolution, the Developer shall comply with the following: a. The development of the subdivision shall comply with all applicable regulations established by the United States Environmental Protection Agency (USEPA) as set forth in the National Pollutant Discharge Elimination System (N.P.D.E.S.) permit requirements for urban runoff and storm water discharge and any regulations adopted by the City of Chula Vista pursuant to the N.P.D.E.S. regulations or requirements; b. File a Notice of Intent with the State Water Resources Control Board to obtain coverage under the N.P.D.E.S. General Permit for Storm Water Discharges Associated with Construction Activity and shall implement a Storm Water Pollution Prevention Plan (SWPPP) concurrent with the commencement of grading activities; c. The SWPPP shall include both consSruction and post construction pollution prevention and pollution control measures and shall identify, funding mechanisms for post construction conurol measures; d. Comply with all the provisions of the N.P.D.E.S. and the Clean Water Program during and after all phases of the development process, including but not limited to: mass grading, rough grading, construction of street and landscaping improvements, and construction of dwelling units; e. Design the Project's storm drains and other drainage facilities to include Best Management Practices to minimize non- point source pollution, satisfactory to the City Engineer; f. Incorporate in the project design water quality and watershed protection principal and all post construction Best Management Practices (BMP's) selected for the project, in co~nliance with the NPDES Permit; g. Prior to Final Map approval for the project, Developer shall enter into an agreement with the City where Developer agrees not to protest the formation of a facilities benefit district or any other funding mechanism approved by the City to finance the operation, maintenance, inspection, and monitoring of NPDES facilities. This agreement to not protest shall not be deemed a waiver of the right to challenge the amount of any right of any person to vote in a secret ballot election. The above noted agreement shall run with the entire land contained within the Project; h. Prior to Final Map approval, building ·permits, or at such time as required by the City Engineer, the Developer shall submit and obtain approval from the City Engineer of a maintenance program for the proposed post-construction BMP's. The maintenance program shall include, but not be limited to: !) a manual describing the maintenance schedule and activities of said facilities, 2) an estimate of the cost of such maintenance activities, and 3) a funding mechanism for financing the maintenance program. In addition, the Developer shall enter into a Maintenance Agreement with the City to ensure the maintenance and operation of said facilities; i. Prior to approval of any grading, construction, and building permits for the project, the Developer shall demonstrate to the satisfaction of the City Engineer compliance with all of the applicable provisions of the municipal code, Model Standard Urban Storm Water Mitigation Plans (SUSMP's) and Numeric Sizing Criteria shall incorporate into the project planning and design effective post-construction BMP's and provide all necessary studies and reports demonstrating compliance with the applicable regulations and standards. BMP's shall be identified and i~Dlemented that specifically prevent pollution of storm drain sysnems to the Maximum Extent Practicable (MEP) from certain project feature, land use, areas, and activities. j. Comply with all relevant City regulations and policies including, but not limited to, incorporation into the design and implementation of the Project temporary and permanent structural Best Management· Practices and non-structural mitigation measures that would reduce pollution of storm water runoff to the maximum extent practicable. 14. Condition 'No. 187 - (Withhold .Building Permits). In partial satisfaction of Condition No. 187 of the Resolution, the Developer acknowledges that the City may withhold building permits for any of the phases of development identified in the Public Facilities Financing Plan (PFFP) if the required public · facilities, as identified in the PFFP or as amended or otherwise conditioned, have not been completed or constructed to the satisfaction of the Director of Planning and Building. 15. Satisfaction of Conditions. City agrees that the execution of this Agreement constitutes satisfaction or partial satisfaction of Developer's obligation of Condition Nos. t0, 12, 40, 54, 57, 102, 103, !06, 109, 138, 156, 179, and 187, of the Resolution. Developer further understands and agrees that the some of the provisions herein may be required to be performed or accomplished prior to the approval of other final maps for the Project, as may be appropriate. 16. Previous Agreement. It is the intent of the parties that this San Miguel Ranch Planning Area "E-2" Supplemental Subdivision Improvement Agreement - with Altamira Development Company, L.L.C. shall not supersede the Previous Agreement. The terms and conditions of the Previous Agreement remain in full force and effect concerning the Project. 17. Recording. This Agreement, or an abstract hereof shall be recorded simultaneously with the recordation of the Final Map. 18. Building Permits. Developer and Guest Builders acknowledge and agree that the City may withhold the issuance of building permits for the Project, should the Developer be determined by the City to be in breach of any of the terms of this Agreement. The City shall provide the Developer of notice of such determination and allow the Developer with reasonable time to cure said breach. 19. Assignablity. Upon request of the developer, any cr all on-site duties and obligations set forth herein may be assigned to developer's successor in interest if the City manager in his/her sole discretion determines that such an assignment Qill not adversely affect the City's interest. The City Manager in his/her sole discretion may, if such assignment is requested, permit a substitution of securities by the successor in interest in place and Stead of the original securities described herein so long as such substituted securities meet the criteria for security as set forth elsewhere in this agreement. Such assignment will be in a form approved by the City Attorney. 20. Implement Previously Adopted Conditions of Approval Pertinent to Project. The Project shall comply, remain in compliance, and implement the terms, conditions, and provisions, as City determines are applicable to the Property which is the subject matter of this Agreement, of 1) San Miguel. Ranch Tentative Tract. Map (CVT 99-04), previously approved by City Council Resolution No. 2000-068 on February 29, 2000 and 2) San Miguel Ranch Phase I, II, and IV Final Map Supplemental Subdivision Improvement Agreement, which was approved by Resolution No. 2001-259 on August 7, 2001. 21. Miscellaneous. a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to eithe~ parsy shall be in wrising and shall be deemed duly serTea, delivered, and received when personally delivered to the party 5o whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.S. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party. CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA. 91910 Attn: Director of Public Works Developer: A!tamira Development Company, L.L.C. 11260 E1 Camino Real, Suite 200 San Diego, California 92130-2647 Phone: (858) 794-2400 Ext. 255; Fax: (858) 794-2401 Attn.: Rick Scott A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party in the manner provided in this paragraph. b. Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. c. Entire Agreement. This Agreement contains the entire agreement between the parties regarding the subject mauler hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to.supersede or amend any other agreement between the parties unless expressly noted. d. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. e. Recitals; Attachments. Any recitals set forth above and Attachments hereto are incorporated by reference into this Agreement. f. Attorneys' Fees. If either party commences litigation for the judicial interpretation, reformation, enforcement or rescission hereof, the prevailing party will be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. [NEXT PAGE IS PAGE ONE OF TWO SIGNATURE PAGES] [PAGE ONE OF TWO SIGNATURE PAGES TO SUPPLEMESVfAL SUBDIVISION IMPROVEMEN~ AGREEMENT FOR SAN MIGUEL P.A-NCH PLA-NNING AREA "E-2" FINAL MAP] IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first hereinabove set forth. CITY OF CHULA VISTA Mayor Attest: Susan Bigelow City Clerk Approved as to form by John M. Kaheny City Attorney [NEXT PAGE tS PAGE TWO OF SIGAIATURE PAGES] [PAGE TWO OF TWO SIGNATITRE PAGES TO IMPROVEMENT AGREEMENT FOR SAN MIGUEL FINAL MAP] SUPPLEMENTAL SUBDIVISION P3~NCH PLANNING AREA "E-2" DEVELOPERS/OWNERS: ALTAMIRA DEVELOPMENT COMPANY LLC, a California Limited Liability Company By: Buie Altamira II, LLC, a California limited liability company, Manager By: By: Name: Tis!e: By: Name: Title: Buie Communities LLC, a California limited liability company, Manager ATTACHMENT "A" LEGAL DESCRIPTION OF PROPERTY THE LJkND REFERRED TO HEREIN IS SITUATED IN THE STATE CA~IFORINA, COUNTY OF SAN DIEGO, AND IS DESCREIBED AS FOLLOWS: LOT 4 OF CHULA VISTA TRACT NO. 99-04 PHASES 1, 2, ~ 4 ~A" MAP NO. 1, ACCORDING TO MAP THEREOF NO. 14261, IN THE CITY OF CHULA VISTA, FILED IN THE OFFICE OF THE COUNTY RECORDER ON AUGUST 21, 2001. J:\~ngineer\LA~DD~V\Projects\San Miguel Ranch\Neighborhood E-2\$ar~4iguel E~2 Map-SSIA.doc ACKNOWLEDGEMENT STATE OF CALIFORNIA } COUNTY OF SAN DIEGO } On March 6, 2003 before me, Jacqueline W. Aldrid~e, a Notary Public in and for said County and State, personally appeared ROBERT B. MONTGOMERY and ROBERT A. WYATT personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in theft authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. COMM. f/1252658 MY COMMI~ON EXPtt~S FEBRUARY 6, 2004 RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT, BETWEEN NNP TRIMARK SAN MIGUEL RANCH, LLC AND CITY REGARDING MAINTENANCE OF PRIVATE OPEN SPACE AND FACILITIES AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the grant of easements and maintenance agreement sets forth the master developer's obligation to maintain landscaping in the public right of way; and WHEREAS, the obligation will be assigned to the master homeowner's association (MHOA) after the landscaping has been established and turned over to the MHOA to maintain; and WHEREAS, there is no community facilities district for maintenance within San Miguel Ranch, therefore, the Home Owners Association (HOA) is responsible for all maintenance; and WHEREAS, the HOA establishes specific obligations and responsibilities of the HOA, regarding the maintenance of private open space and facilities within the right of way; and WHEREAS, the agreement also grants non-City crews permission to maintain parkways in the public right of way and storm drain inlets equipped with water quality facilities; and WHEREAS, staffbelieves that the proposed agreement will guarantee the maintenance of the aforementioned private improvements and recommends Council approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the grant of easements and maintenance agreement between NNP Trimark San MigueI Ranch, LLC and the City of Chula Vista for San Miguel Ranch Neighborhood "E-2", regarding maintenance of private open space and facilities, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said agreement on behalf of the City of Chula Vista. Presented by Approved as to form by Clifford Swanson Director of Engineering City Attorney J:~.nomey~.esoXHOA SMR Neighborhood E-2 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 ~' Ann Moore City Attorney Dated: GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT BETWEEN NNF, TRIMARK SAN MIGUEL RANCH, LLC AND THE CITY OF CHULA VISTA RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City Cl~rk City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency for less than a fee interest for which no cash consideration has been paid or received. (ABOVE SPACE FOR RECORDER'S USE) GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH, SAN MIGUEL RANCH PLANNING AREA "E-2" Map No (DEDICATED EASEMENTS) This GRANT OF EASEMENTS AND MAINTENANCE AGREEMENT ("Agreement") is made as of , 2003, by and between the CITY OF CHULA VISTA, a municipal corporation ("City"), and NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company ("NNP"). RECITALS A. This Agreement concerns and affects certain improvements with portions of the real property located in Chula Vista, California, more particularly described in Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is part ora planned residential development project commonly known as "San Miguel Ranch", Chula Vista Tract No. 99-04, being the subjeet of the City Council Resolution No. 2001-261 (the "City Resolution"). For purposes of this Agreement, the term "Project" shall refer to the Overall San Miguel Ranch project, including, but not lim/ted to the "Property." B. NNP is the Declarant under that certain Master Declaration of Restrictions For San Miguel Ranch Master Association filed for record in the Official Records of San Diego County, California (the "Master Declaration"). The Master Declaration provides for SAN MIGUEL RANCH T:~JlrBTfimar k~S M~CityAgree~EasMain( City)AreaE.2.21 Feb03 .wpd - 1 - MASTER ASSOCIATION, a California Nonprofit Mutual Benefit Corporation CMHOA") to maintain certain areas in the Project. Furthermore, one or more sub-associations may be formed ("SHOA") for a particular project(s) within San Miguel Ranch, the purposes of which would include the maintenance of certain amenities within the project over which the SHOA has jurisdiction. C. The Propertyis or will become covered by the final map(s) (the "Final Maps") described on Exhibit "A" attached hereto and referenced in the title to this Agreement. D. In order for NNP to obtain the Final Maps and for the City to have assurance that the maintenance of certain areas within the Project would be provided for, the City and NNP entered into a Supplemental Subdivision Improvement Agreement pursuant to the City Resolution, in which NNP agreed that maintenance of such areas shall be accomplished by the creation of a home owners association. The Parcels shown on Exhibit "B" and Exhibit "D" attached hereto describe those particular areas which were dedicated to the public on one or more o fthe Final Maps but which include landscaping and drainage improvements to be maintained by the MHOA. The public areas to be maintained by the MHOA are collectively referred to as the "MHOA Maintained Public Areas." E. The City desires to grant to NNP easements for landscape maintenance purposes upon, over and across the MHOA Maintained Public Areas as shown on Exhibits "B" and "D" in order to facilitate the obligations of NNP as set forth in Supplemental Subdivision Improvement Agreements, adopted pursuant to the City Resolution. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as set forth below. 1. Grant of Easements. The City hereby grants to NNP and its agents, successors and assigns, the foll0wing easements over the MHOA Maintained Public Areas: Non-exelnsive easements andrights-of-wayoverandacrossallParcelsdescribedon Exhibit "A" for thepurposeofmaintainLng, repairing and replacing the following: the landscaping within portions of parkways in Plaza Kadie, Circulo Coronado, Corte Castillo and Corte Condesa as shown and described on Exhibit "B" attached hereto; and storm water filtration devices within parkways in Plaza Kadie, Circulo Coronado and Corte Castillo as shown on Exhibit "D" attached hereto. These grants are made without anywarranties of any kind, express or implied, other than the warranty stated in Paragraph 13(f) below. 2. Maintenance Responsibilities. (a) NNP to Initially Maintain. NNP hereby covenants and agrees, at its sole cost and expense, to maintain, repair and replace, or cause to be maintained, repaired or replaced, those improvements within the MHOA Maintained Public Areas which are described on Exhibit "C" attached hereto, at a level equal to or better than the level of maintenance set forth in T:~YH~Tfimark~S M~ityAgr~ekEas Main(Cit y)AteaE .2.21 Feb03 .wpd -2- the Section of the Master Declaration entitled "Level of Landscape Maintenance". Forpurposes of this Agreement, the term "Maintenance" or "Maintain" shall mean the maintenance, repair and replacement obligations described herein and on Exhibit "C" hereto and shall also include repair and replacement at no cost to the City of any City owned property that is damaged during performance of the maintenance responsibilities pursuant to this Agreement. Exhibit "C" also refers to the maintenance responsibilities of City. (b) Transfer to MHOA. Upon NNP's transfer of maintenance obligations to the MHOA, (i) the MHOA shall become obligated to perform the obligations so transferred, and (ii) subject to the City determining that the requirements of Paragraph 3 below have been satisfied, NNP shall be released fi-om such obligation. Transfer of maintenance obligations to the MHOA may be phased (that is, there may be multiple transfers). (c) Transfer By MHOA. The IV[HOA shall have the right to transfer Maintenance obligations to a sub-association ("SHOA") or to the owner of an apartment project ("Transferee"). Upon the MHOA's transfer of Maintenance obligations to a Transferee, (i) the Transferee shall become obligated to perform the obligations so transferred, (ii) the MHOA shall retain the right to perform the Maintenance should the Transferee fail to do so, and (iii) the MHOA shall be released fi.om the obligations so transferred subject to the City determining that the requirements of Paragraph 4 below have been satisfied. Although it is possible that Maintenance obligations might be transferred to an apa~ relent owner, NNP does not believe it is likely that Maintenance obligations will be transferred to an apartment owner. 3. Assignment by NNP and Release of NNP (a) Assignment. Upon NNP's transfer of the Maintenance obligations to the MHOA, it is intended by the parties that the MHOA shall perform the Maintenance obligations either itself or by contractors. Such transfer will release NNP fi.om its obligations only if all of the following occur: (i) MHOA Accepts Obligation. The MHOA has unconditionally accepted and assumed all of NNP's obligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of NNP under this Agreement. The assignment shall also have been approved by the appropriate governing body of the M/-IOA byresolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreasonably withhold its consent to such assignment. (ii) MHOA's Master Declaration. The City has reviewed and approved the MHOA's recorded Master Declaration to confirm that said document contains appropriate maintenance, indemnity and insurance provisions. The City hereby T:~dH~Tfimark~Sivl~CityAgr~EasMain(City)AreaE-2.21 Feb03 ,wpd -3- acknowledges that it has so approved the Master Declaration. This condition "(ii)" will apply to any further .amendments which require City's consent pursuant to provisions of the Master Declaration or which would be contrary to the terms of this Agreement. (iii) MHOA Insurance. The MHOA procures and formally resolves to maintain at its sole cost and expense, commencing no later than the City's release of all of NNP's landscape maintenance bonds, a policy of public liability insurance which at least meets the requirements of Section 5.1 (a) of the Master Declaration which reads as follows: "(a) General Liability Insurance. TheMaster Association shall obtain a comprehensive general liability and property damage insurance policy insuring the Master Association and the Owners against liability incident to ownership or use of the Master Association Property. The limits of such insurance shall not be less than $3 Million covering all claims for death, personal injury and property damage arising out of a single occurrence. The insurer issuing such insurance shall have rating by A.M. Best of"A, Class V" or better with no modified occurrences and as admitted by Best's Insurance Guide. Such insurance shall include the following additional provisions provided they are available on a commercially reasonable basis: (i) The City of Chula Vista shall be named as an additionally insured party to such insurance pursuant to the Ci~s requirements the Master Association do so; (ii) The policy shall not contain a cross- suit exclusion clause which would abrogate coverage should litigation ensue between insureds; (iii) The policy shall contain the following severability clause (or language which is substantially the same): "'The coverage shall apply separately to each insured except with respect to the limits of liability'." T:~JH~Trimark~S M~CityAgree~Ea~Main(City)AreaE-2.21 Feb03 .wpd 4- The MHOA shall provide the City with a Certificate of Insurance upon acceptance of the transfer of the Maintenance obligations herein, (b) Release. When all conditions precedent in Paragraph 3(a) are fulfilled, NNP shall be released fi.om its obligations under this Agreement, including its security and insurance requirements. NNP acknowledges that it has a contractual obligation to perform the terms and conditions of this Agreement until and unless released by the City fi.om this Agreement, At least sixty (60) days prior to such transfer, NNP shall g/ve a notice to the City of NNP's intent to transfer its Maintenance obligations herein and provide the City with the appropriate documents listed in Paragraph 3(a). 4. Assignment bv MHOA and Release of MHOA. (a) Assignment. Upon MHOA's transfer of the Maintenance obligations to a Transferee, it is intended by the parties that the Transferee shall perform the Maintenance obligations either itself or by contractors. Such transfer will release the IvlHOA fi.om its obligations only if all of the following occur: (i) Transferee Accepts Obligation. The Transferee has unconditionally accepted and assumed all of the MHOA's obligations under this Agreement in writing, such assignment provides that the burden of this Agreement remains a covenant running with the land, and the assignee expressly assumes the obligations of the MHOA under this Agreement. If the Transferee is an SHOA, the assignment shall also have been approved by the appropriate governing body of the SHOA by resolution or similar procedural method and approved as to form and content by the City Attorney. The City shall not unreasonably withhold its consent to such assignment. (ii) SHOA's Declaration of Restrictions. If the Transferee is an SHOA, the City has reviewed and approved the SHOA's recorded Declaration of Restrictions to confirm that said document contains appropriate maintenance and insurance provisions. (iii) SHOA Insurance. The Transferee procures and formally resolves to Maintain at its sole cost and expense, a policy of public liability insurance which meets the requirements set forth in Paragraph 3 (a) (iii) above. The SHOA shall provide the City with a Certificate of Insurance upon acceptance of the transfer of the Maintenance obhgations herein. (b) Release. When all conditions precedent in Paragraph 4(a) are fulfilled; the MHOA shall be released from its obligations under this Agreement, including its security and insurance requirements. At least sixty (60) days prior to such transfer, IV[I-IOA shall give notice to the City of MHOA's intent to transfer its Maintenance obligations herein and provide the City with the appropriate documents listed in Paragraph 4(a). T:~,JH~Trlmark~ IvBCityAgr ~Ea~Maln(City)Ar*aE-2.21Fcb03.wpd ~5- 5. NNP's Insurance, Until such time as the MHOA has obtained the general liability insurance required by Section 5.1 (a) of the Master Declaration, NNP hereby agrees to procure and maintain a policy of comprehensive general liability insurance written on a per occurrence basis in an amount not less than One Million Dollars ($1,000,000) combined single limit, at its sole cost and expense. 6. Indemnity. NNP hereby indemnifies the City as set forth in Section 6.3 of the Master Declaration, which reads as follows: "6.3 Indemnity. The Declarant and Master Association, respectively, shall indemnify and hold the City, its officers, agents and employees harmless from any liability, cost or expense, including reasonably incurred attorneys' fees, which result fi.om the Declarant's or the Master Association's respective failure to comply with the requir~nents of the Section above entitled "Continuing Obligation To Maintain Certain Public Areas". Neither the Declarant nor the Master Association shall have any liability under this Section by reason of(i) the other party's failure to maintain or (ii) any Transferee's failure to maintain. It is specifically intended that the City shall have the right to enforce th/s Section. This Section may not be mended without the written consent of the City Planning Director or City Attorney." 7. Indemnity If Transferee. The document whereby the MHOA transfers a Maintenance obligation to an SHOA or apartment owner shall be signed by both the MHOA and the Transferee and shall set forth an express assumption of Maintenance and other obligations hereunder and shall include the following indemnification provision: Indemnity. The [Transferee~s nameJ shall indemnify and hold the City, its officers, agents and employees, harmless fi.om any liability, cost or expense, including reasonablyincurred attorneys' fees, which result from the Transferee's failure to comply with the requirements of the obligations transferred h~reby to Transferee. Transferee shall not have any liability under this Indemnity by reason of another party's failure to maintain. It is specifically intended that the City shall have the right to enforce this Indemnity. This Indemnity may not be amended without the written consent of the City Planning Director or City Attorney. 8. Agreement Applicable to Subsequent Owners. (a) Agreement Binding Upon Any Successive Parties. This Agreement shall be binding upon NNP and any successive Declarant under the Master Declaration. This Agreement shall be binding upon MHOA and any Transferees upon transfer of maintenance T:~JHXTfimark~SMXCityAgree~EasMaln(Ciiy)AmaE-2.21 Feb03 .wpd -6= obligations to the MHOA or Transferee, respectively. This Agreement shall inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property. (b) Agreement Runs With the Laud. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns, and any successor-in-interest thereto. The City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community and other parties, public or private, in whose favor and for whose benefit such covenants running with the land have been provided, without regard to whether the City has been, remained or are owners of any particular land or interest therein. If such covenants are breached, the City shall have the fight to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it or any other beneficiaries of this Agreement and the covenants may be entitled. 9. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California. 10. Effective Date. The terms and conditions of this Agreement shall be effective as of the date this Agreement is recorded in the Official Records of the San Diego CountyRecorder's Office. 11. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be original and all of which shall constitute one and the same document. 12. Recording. The parties shall cause this Agreement to be recorded in the Official Records of the San Diego County Recorder's Office within thirty (30) days after this Agreement has been approved by the City Council. 13. Miscellaneous Provisions. (a) Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or pernfitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered and received when personally delivered to the party to whom it is directed or, in lieu thereof, when three (3) business days have elapsed following deposit in the United States mall, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this Paragraph by giving written notice of such change to the other party. IfTo City: CITY OF CHULA VISTA Department of Public Works/Engineering Division 276 Fourth Avenue ChulaVista, CA 91910 Attn: City Engineer If To NNP: NNP-TRIMARK SAN MIGUEL RANCH, LLC The San Miguel Ranch Company 85 Argonaut, Suite 205 Aliso Viejo, CA 92656 Attn: Mr. Stephen E. Hester (b) Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. (c) Entire Agreement This Agreement, together with any other written document referred to herein, embody the entire agreement and understanding between the parties regarding the subject matter hereof, and any and all prior or contemporaneous oral or written representations, agreements, understandings and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. (d) Recitals; Exhibits. Anyrecitals set forth above and any attached exhibits are incorporated by reference into this Agreement. (e) Compliance With Laws. In the performance of its obligations under this Agreement, NNP, its agents and employees, shall complywith any and all applicable federal, state and local rules, regulations, ordinances, policies, permits and approvals. (f) Authority of Signatories. 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 and/or other actions have been taken so as to enable said signatory to enter into this Agreement. (g) Modification. This Agreement maynot be modified, terminated or rescinded, in whole or in part, except by written instrument duly executed and acknowledged by the parties hereto, their successors or assigns, and duly recorded in the Official Records of the San Diego County Recorder's Office. T:~IH~Tfimar k~SM~CityAgre~EaaMain(City)AreaE-2.21 Feb03 .wpd (h) Severability. If any term, covenant or condition of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to person or circumstance, shall not be affected thereby and each term, covenant or condition shall be valid and be enforced to the fullest extent permitted by law. (i) Preparation of Agreement. No inference, assumption or presumption shall be drawn fi.om the fact that a party or its attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first set forth above. CITY OF CHULA VISTA, a municipal corporation Attest: By: Mayor Susan Bigelow, City Clerk APPROVED AS TO FORM: By: City Attorney NNP-TRIMARK SAN MIGUEL RANCH, LLC, a Delaware limited liability company ~ pr~ide~ Its 1)~ C, ll~IA8 T:~AJHXTrlmarkXSM~CityAgraekEasMain(City) AreaE-2.2 IFeb03.wpd =9- STATE OF CALIFORNIA ) O v )ss. COUNTY OF SAN DIEO0 ) On ~d-' I'Z--0~, , -2-00 % before me,j~'~ Notary Public in and for said State, per;onally appeared personally known to me (or provod to mo on tho basis cf satisfactory evidence) to be the perso_n~s~ whose name~is/a~ subscribed to the within instrument and acknowledged to me that he/sl~t-h~ executed the same in his/h~,t~ authorized capacity~;-,-,-,-,-,'and that by his/her/their signature(.s-)'on the instrument, the person.(.~, or the entity upon behalf of which the person(~ acted, executed the instrument. WITNESS my hand and official seal. STATE OF CAL1Z'ORNIA COUNTY OF SAN DIEGO On Notary Public in and for said State, personally appeared ,2003, before me, h~; (Seal) personally known to me (or proved tn rn ~ on the basis of sari;factory evidence) to be the person~) whose name(~ is/a~ subscribed to the within instrument and acknowledged to me that he/st~tl~y executed the same in his/het/tlaa~r authorized capacity(i~), and that by his/he~/thek signature(~on the instrument, the person(~), or the entity upon behalf of which the person(~ acted, executed the instrument. WITNESS my hand and official seal. Signature ~~. ~ T:L~JH~Tfimark~SM~CityAgreekEasMain(City)AreaE-2.21 Feb03 .wpd -10- (Seal) .z.. '. EXHIBIT "A" Leeal Description PARCEL A: PORTIONS OF PLAZA KADIE AS DEDICATED TO PUBLIC USE ON CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PLANNING AREA "E-2", ACCORDING TO MAP THEREOF NO. FILED IN THE OFFICE OF TI-IE COUNTY RECORDER OF SAN DIEGO COUNTY ON 2003 BEING A SUBDIVISION OF LOT 4 OF CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PHASES 1, 2 & 4 "A" MAP NO. 1, ACCORDING TO MAP THEREOF NO. 14261 FILED IN SAID OFFICE OF THE COUNTY RECORDER ON AUGUST 21, 2001, ALL IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. PARCEL A-1: PORTIONS OF CIRCULO CORONADO AS DEDICATED TO PUBLIC USE ON CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PLANNING AREA"~"E--2'', ACCORDING TO MAP THEREOF NO. FILED IN SAID OFFICE OF THE COUNTY RECORDER ON __, 200__ BEING A SUBDIVISION OF SAID LOT 4 OF MAP NO. 14261. PARCEL A-2: PORTIONS OF CORTE CASTILLO AS DEDICATED TO PUBLIC USE ON CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PLANNING AREA "E-2", ACCORDING TO MAP THEREOF NO. FILED IN SAID OFFICE OF THE COUNTY RECORDER ON 200__ BEING A SUBDMSION OF SAID LOT 4 OF MAP NO. 14261. PARCEL A-3: PORTIONS OF CORTE CONDESA AS DEDICATED TO PUBLIC USE ON CHULA VISTA TRACT NO. 99-04, SAN MIGUEL RANCH PLANNING AREA "E-2", ACCORDING TO MAP THEREOF NO. FILED IN SAID OFFICE OF THE COUNTY RECORDER ON __, 200 BEING A SUBDIVISION OF SAID LOT 4 OF MAP NO. 14261. PARCEL A-4: THE INLET FILTER LOCATED WITHIN A PORTION OF PLAZA KADIE, THE APPROXIMATE LOCATION IS SHOWN ON SHEET 1 OF EXHIBIT "D" ATTACHED HERETO. THE ACTUAL LOCATION OF THE INLET FILTER SHALL BE WHERE THE DEVICE IS INSTALLED. PARCEL A~5 THE INLET FILTER LOCATED WITHIN A PORTION OF CIRCULO CORONADO, THE APPROXIMATE LOCATION IS SHOWN ON SHEET 1 OF EXHIBIT "D" ATTACHED HERETO. THE ACTUAL LOCATION OF THE INLET FILTER SHALL BE WHERE THE DEVICE IS INSTALLED. PARCEL A-6: THE INLET FILTER LOCATED WITHIN A PORTION OF CORTE CASTILLO, THE APPROXIMATE LOCATION IS SHOWN ON SHEET 2 OF EXFI~IT "D" ATTACHED HERETO. THE ACTUAL LOCATION OF THE INLET FILTER SHALL BE WHERE THE DEVICE IS INSTALLED. PARCEL A-7: THE INLET FILTER LOCATED WITHIN A PORTION OF CORTE CONDESA, THE APPROXIMATE LOCATION IS SHOWN ON SHEET 3 OF EXHIBIT "D" ATTACHED HERETO. THE ACTUAL LOCATION OF THE INLET FILTER SHALL BE WHERE THE DEVICE IS INSTALLED. T:kM'h'~Tfimar k~IvECiwAgr~ekEasMain(City)AreaE-2.21Feb03.wpd Z / EXHIBIT "C" Maintenance Responsibilities Area Parkways shown on Exhibit HOA Maintenance Landscaping in parkways including irrigation, trimming and pruning of trees, and maintenance and irrigation of turf areas. City of Chula Vista Maintenance Maintenance of curb, gutter, sidewalks and pavement. Storm Drain Filtration Devices Routine cleaning and replacement when required of the filtration devices None T:'~JH~Trimark~/VlxCityAgxee~EasMain(City)AreaB-2.21 Feb03 .wpd EXHIBIT " SHEET I OF J 20 19 I? 16 15 12 18 I ?0 4 3 6 ?3 7 74 \ \ 75 "A* NO SCALE 11 8 10 9 LEGEND ~ INDICATES INLET £1LT£R .4PPROXIWAT~m LOCATION iHUNSAKER & ASSOCIATES INLET FILTER I~AINTENANCE EXHIBIT PHASE 4 AL TAMIRA CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PLANNING AREA "E-2" EXHIBIT "D_ " SHEET 2 OF 3 2§ 55 27 52 53 60 59 56 57 CASTILLO 26 5B 61 62 63 64 NO SCALE 25 65 66 LEGEND ~'~ INDICATES INLET FILTER APPROXII4ATE LOCATION 23 67 68 22 69 21 2O 7O HUNSAKER ASSOCIATES INLET FILTER MAINTENANCE EXHIBIT PHASE 5 AL TAMIRA CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PLANNING AREA "E-2" EXHIBIT " ~ " SHEET 3 OF 3 NO SCALE 39 38 40 42 31 45 30 5O 49 51 48 47 46 52 53 5O 29 54 59 37 36 LEGEND i~~ INDICATES INLET FILTER APPROXIMATE LOCATION HUNSAKER & ASSOCIATES INLE'r FILTER MAINTENANCE EXHIBIT PHASE 6 ALTAMIRA CHULA VISTA TRACT NO. 99-04 SAN MIGUEL RANCH PLANNING ARE4 "E-2" TOTRL P. 04 COUNCIL AGENDA STATEMENT Item ]0 Meeting Date 3/25/03 ITEM TITLE: Resolution appropriating $42,162 from the unappropriated available balance of the Residential Construction Tax (RCT) to reimburse developer for costs involved with storm drain replacement at 3733 Main Street SUBMITTED BY: Director of Engineeringff REVIEWED BY: City Manager~5 ~' (4/5tbs Vote: Yes No X ) Mr. Ali Amani, owner of the property at the southeast comer of Main Street and Mace Street, has recently completed the construction of a Mobil gas station with food mart and car wash at this site. As part of this development, he was required to widen both streets to meet current standards mandated in the City's Circulation Element of the General Plan. Part of the widening requirements included replacing an old corrugated metal storm drain pipe along Main Street with new reinforced concrete pipe. Staff is requesting that Council authorize the reimbursement to Mr. Amani for the cost of this storm drain replacement from the available balance in the Residential Construction Tax (RCT) fund. RECOMMENDATION: That Council adopt resolution appropriating $42,162 from the unappropriated available balance of the Residential Construction Tax (RCT) to reimburse developer for costs involved with storm drain replacement at 3733 Main Street BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: In July of 2001, the owner of property known as 3733 Main Street (southeast comer of Main Street and Mace Street) submitted an application for a Design Review to construct a Mobil gas station with food mart and car wash on the property in question. As the plans were processed through the Engineering Division, the requirement to widen the adjacent streets was imposed in accordance with the Municipal Code requirements. Main Street is considered a Four-Lane Major Street and Mace Street is considered an Industrial Street. Main Street along the project frontage had a half-width of 32 feet from centerline to curb while Mace Street had a half width of 14 feet. Current Chula Vista Design Standards for these streets call for half widths of 41 feet for Main Street and 26 feet for Mace Street and the developer was required to widen both roads to meet our standards. Mr. Amani agreed to complete the widening work and his engineer submitted improvement plans to the Engineering Division for this work. Upon inspection &the improvement plans, staffdiscovered an old corrugated metal pipe (CMP) for storm drain purposes that existed along the project frontage on Main Street. TheCountyofSanDiegoinstalledthis storm drain line in 1979. City Public Works Operations crews performed a video inspection of the pipe, which indicated it to be in poor Page 2, ltem Meeting Date 03/25/03 condition. The CMl? storm drain was located approximately five (5) feet fi.om the ultimate curb line and was very shallow (two to four feet deep). Because of the shallow depth of the CMP line, the street widening over the top of the pipe could not be performed without the risk of the pipe collapsing. Therefore, staff required the developer to remove the existing line and replace it with Reinforced Concrete Pipe (RCP). Mr. Amani agreed to replace the deteriorated storm drain as part of his street-widerfing project, but asked the City for reimbursement for the storm drain replacement portion of the work. Mr. Amani's engineer had estimated the cost of the storm drain replacement to be approximately $30,000. Mr. Amani was sent a letter fi.om the City Engineer dated March 26,2001 (see Exhibit A) explaining the procedure and requirements in order for him to receive reimbursements for the storm drain replacement. The letter did not guarantee the reimbursement, but rather stated that the final decision was to be made by Council and suggested a Reimbursement Agreement. Mr. Amani did not request the Reimbursement Agreement, but made the improvements without it. He was required to provide a total of three contract bids of the actual cost of the storm drain replacement so that the City could verify all reimbursable costs. Mr. Amani was also required to utilize the lowest of the three bids. The cost of the remainder of the street widening improvements is approximately $110,000. Staffis of the opinion that Mr. Amani should be reimbursed for the storm drain work since he had no role in the original construction of the line and its subsequent deterioration. While the street widening work could not have been undertaken leaving the existing CMP storm drain in place, there is no connection or nexus that would require Mr. Amani to replace that drain solely based on the development ofthe property in question. Furthermore, Mr. Amani's storm water management plan does not provide for any connection to the storm drain in question, therefore, there is no nexus by which the City could require Mr. Amani to completely bear the costs of the repairs. Mr. Armani was completely responsible for all costs associated with the street widening work. Mr. Amani has recently completed the required street widening work including the storm drain replacement and all work has been approved and accepted by City inspectors. He has submitted the three contract bids as required for the storm drain reimbursement (see Exhibit B). Staff verified the three bids to be accurate so that only construction and design work associated directly to the storm drain replacement was included. The lowest bid amount totaled $42,162 from Double D Pipeline Inc. FISCAL IMPACT: RCT funds are eligible for storm drain related projects and there are no other storm drain related funds available. While there will be an impact to the RCT funds in the amount of $42,162, the City would have had to make these repairs at some point had the proposed development project not be submitted. In fact, it could logically be argued that the costs to the Citywill be less by having Mr. Amani perform this work now as opposed to the City doing it later at a likely higher cost or, in the worst case scenario, after the storm drain actually failed and the city had not only reconstruction costs but potential clean-up and/or damage elsewhere within the street or on neighboring properties. Attachments: Exhibit "A" - Letter from City dated March 26, 2001 Exhibit "B" - 3 contract bids for storm drain replacement Exhibit "C" - Improvement plan 01016-02 showing storm drain replacement work J:XEngineerXAGENDAWIain&Mace Reimb. SLY.doc ~ 01/2~/03 TUE 15:32 FAX 619 691 $171 CHUIA VISTA ENGINEERING CIIY OI= CHUIA Vi A DEPAFITMENT OF PU~iLIC WORK~ ENGINEERING DIVISION March 26, 2001 File No.0710-~5-PC-1382 Ali Amani 176S E1 Paso Real La $olla, CA 92037 STORM DRAIN CULVERT REPLACEMENT AT 3733 MAIN STREET This letter is to inform you of the City's reqair~ments and reimbursement procedures for the storm drain culvert replacement adjacent to your property at 3733 Main Street Field investigation of the existing 24" CMP culver~ shows that it is in poor condition and requ~es replacement with reinforced concrete pipe in the same diamet~ or as approved by the City Engineer prior to extending street widening improvements over it, Also, the westerly portion of the existing culvert is very shallow and replac~nent may require concrete encasing. The City l~nglneerlng Division will recommend to Council the reimbursement of the costs required for the culvert replacement. In order for tl~s recommendation to occur, you will be required. ~o enter into a Reimbursement Agreemerit with the City. Said agreement will be drafted by the City and available for your review and comanent when completed. Reimbursement'will occur after the culvert replacement has been completed anc~ accepted by City inspectors. As part oft. he reimbursement requirements, you are required to ~tbmit a total of three contract bids for the culvert replacement work for the approval of the City Engineer. You will be required to utilize the lowest of the three bids. The bids should cover only the design and ~nstractinn cOstS of the culvert replacement, and not include street surfacing over the new culvert or overhead costs. Th= above der~ribed Md submittal requirements can only bc used for project~ involving $~0,000 or less of City funds. Prellm~,ary estimates by thc City indicate the culvert replacement co,ts should be well trader this amotmt. Please note that this letter does not gmeantee the reimbursement for th= subject calvert replacemem. l~inal approval must be obtained from City Council 276 FOURTH AVENUE / CHULA VISTA. CALIFORNIA 91910-2631 / (619) 891-5021 01/28/03 TI.~ 15:37 FAX 619 §91 ¢~iLAvISTI E~GINEERING ~]003 Ali Amani 2 3732 Main S'zree! If you have any questions regarding this matter, please contact Silvestcr Evetovich, Civil Engineer, at 691-5115. CLI~ORD L. SWANSON DEPUTY PUBLIC WORIL$ DIRECTOR/ CITY ENGLNrEER SE Robert Faudoa Jr. 4901 Morena Blvd, Suite 30a, San Diego, CA 92117 Alex Al-m Agha~ Senior Civil Eagineer crT¥ OF CHULA VISTA '~02/13/R003 THU ll:OU F4X 760 931 6520 Pacific Commercial Const ×.H-lB lq' PROPOSAL SITE: Mobil 3733 IVl~in St. Chule Vista instmr tim foliednO ~ M won~ mr pla~ e. s~ of~ QUANTITY DESCRIPTION AMOUNT {~004/004 1 282' 4' I t 1 1 kS STORU UO~/DEMOB $ 2,000,00 $ 2,000.00 CONNECT TO F-.XIS"T'ING MAN HOLt $ 650,0(~ LOWER EXISTING CLEAN-OUT $ 3.60,00 $ 350.0o 24" REMOVE & REPLACE CMP W/ RCP $ 100.00 $ 28;2.00.00 18" RCP $ 100.00 $ 400.00 DISPOSE OF CMP $ gO0,O0 $ 900.00 1 SACK OF CONCRETE $ 75.00 $, 750,00 CONORBTE LUG (D-63) $ 60O,00 $ 500.00 8' 'IN~E I~'1 CURN INLET NO LOCAL $ 3,600,00 $ DAYTIME TIE IN OF WATER $ 1,80O.00 $ 1,800,00 ^LLTRAFFICCON'T'FIOL $ 2,000.00 $ 2,000.00 RAISE VALVE$ $ 600.00 ~$ ' %500.00 TOTAL CONDITIONS.' ^lb{r instatiatlefl e~ ~rm D*mJn pipe & ~u~ ~R~ O~P. Mil ~ ~ r~poM~l~ ~ Oa~, ~, or ~= ~lgn ~rial~leh ~ ~ In~ pipe ~ s~m by ~1 et ~ ~, EXCLUSIONS; siml~ EngiMedng, 41DJohn~ ~l~[oM, Hau~?mn~GpoflB~d~Dl~ ~,~i~dt~ / ~ QUOTE GOOD FOR AOGIIP'/'~D '02/13/2003 T~ 11:09 FA~ 76~ ~ii~ 6520 Pacific Commercial Const ~00~/004 DATE: April 17.20~1 TO: Pacifi,'. C. ammer~l~l Co~elJon A~0N: J~ Bruno P~OJ~T'. ~bi1 LOCATION: ~7~ ~ ~ ~ul~ ~ ~ PROVIDE AND INr/ALL 1 - b-'form mob I derneb 2 - Connect to existing man hol= 1 - Lower exist'rig dean-out 282 Feet el 24' remove end repLace CMP with RCP ¢ Feet of 18' RCP 1 - Dispose of CMP 10 - 1 sa~k of concrete 1 - Concrete lug ( D-~:~ ) 1 - 8 Feet of type B-'~ curb inlet, no local Daytime 'de.tn of water All traffi= ~ontrd R~se valves EXCLUSIONS Off,,slte haul off Grou nclw'ater Rom not dlgable by backhoe Rel~acement ~ concrete Survey ~o118 AC.remov$! by eth~r~ CI local depression Permits and/or fee~ P.O. laOX ~,1214 ENCINITAS, CA 9202~ 760-634;0726 FAX 760-274-2tl 0 CHANGE.ORDER PRICE $ 4t,000.00 UPON ACCEPTANCE ""r'THLS CHANGE ORDBR BID SHALL REMAIN VALID FOR ~0 K-~BT-JOB/f 48-01 C/O · COMMI=ROlAL * REB~'AURANTS · CUSTOM HOIV~S - DESIGN · LIC,~NSE #7EI7~55 · ~02/13/2003 TI~ 11:08 FA~ 760 931 6520 Pacific Co~ercial Const PROPOSAL DOUBLE O PIPELINE, iNC 4Z16~ iUO MEDO 'fl~qEOUt.k, CA gs~gO LIC: ,4~14487 FAX~' (,Iee)~.e~10 ~]002/00~ TO: PacificComnm'c~ Consb'uctk~ tl'-Apr-Ol Attfl: Paul RE: Mobil 6talion, Chula · J4D mJK.~T TO GCmlXrtOmS PER THru ,~GGM~T 'rl~ FOU.OWING: J Q'rY size r)I~CaUPTiON - uNfl' Pl~ 16,920.00 t,000.00 s~ooo.oo 2 24' ~ to e~isling MH 300,00 I e~ covwex~ ~ 600.P0 282' 24" Rem/repla(~ CMPwJRCP 6~...(~10 4' 18" RC, P 30.00 ILS DispO~ Of CMP 10 CY l~k ~lrly 100 I 8' Type B-1 =ute In~,,t, rm local 5,000,~0 TOTAL AMOUNT 8PECIF~ INCLU~ON~: D~ ~ ~, al u.~ ~, ". Engineer:. K&S A~c~pt~cl Ak31~oved I: .: lan~: No P~clfic Commer~ Construct:too Rflpec~, ~y Submitted FROM : K~S ENGINEERING PHONE ND, K&S EHGINEERING : Gl9 2CJG 55G4 Ma~h 19, 2001 ~aty rm~ineering 4901 Motena Boulevard, Suite 304 SanDiego, CA 92117 l~e: Chula Vista Mobil- PC-1382 Dear Mr. Faudoa, Per you request, pte~¢ find herewith m~gineering estimate for the replacement of approximately 287 f~e~ of existing CIO Storm Drain on Mafix Street: fees: $ 2990.00 Field sur~ey · Design / meetings / plan chock · E)raRing / processing · Drainage Calculation Pleme notc the storm dram replacement shall be included with the current offsitcs drawings I'4o. 01016-02 as perPC-l~82. If you wish to revicw this matter further, please do not hesitme to call me. ~E Project Manager 7801 M~lon Center Court. Suite 1(30 . San Diego, CallfornJo 92108 . (619) 296-5565 . Fax <619) 296-5564 /o-'q RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CHULA VISTA APPROPRIATING $42,162 FROM THE UNAPPROPRIATED AVAILABLE BALANCE OF THE RESDENTIAL CONSTRUCTION TAX (RCT) TO REIMBURSE DEVELOPER FOR COSTS INVOLVED WITH STORM DRAIN REPLACEMENT AT 3733 MAIN STREET WHEREAS, Mr. Ali Amani, owner of the property at the southeast comer of Main Street and Mace Street, has recently completed the construction of a Mobil gas station with food mart and car wash at this site; and WHEREAS, as part of this development, Mr. Amani was required to widen both streets to meet current standards mandated in the City's Circulation Element of the General Plan; and WHEREAS, part of the widening requirements imposed by the City included replacing an old corrugated metal storm drain pipe along Main Street which had been installed by the County more than two year ago; and WHEREAS, staff is requesting that Council authorize the reimbursement to Mr. Amani for the cost of this storm drain replacement from the Residential Construction Tax. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby appropriate $42,162 from the unappropriated available balance of the Residential Construction Tax (RCT) to reimburse developer for costs involved with storm drain replacement at 3733 Main Street. Presented by Approved as to form by Clifford Swanson Director of Engineering City Attorney J:/attomey/leso/appropriation 3733 Main Street COUNCIL AGENDA STATEMENT Item Meeting Date3~25~03 ITEM TITLE: RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CITY'S FORMAL BIDDING PROCESS AND APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; LINSCOTT, LAW & GREENSPAN, ENGINEERS, (CONSULTANT); AND THE EASTLAKE COMPANY, LLC, (APPLICANT) FOR THE EASTLAKE VILLAGE CENTER EAST PROJECT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT SUBMITTED BY: Director of Plarming and Buildin~ REVIEWED BY: City Manager370 rv (4/Sths Vote: Yes __ No _X.X ) The EastLake Company LLC has submitted an application for a General Plan Amendment and General Development Plan/Sectional Planning Area Plan Amendment for the Village Center East project. The project site was previously addressed in the approved EastLake Village Center North Mitigated Negative Declaration (IS-01-042) and associated traffic impact analysis prepared by Linscott, Law & Greenspan Engineers dated May 2002. The proposed project requires a new traffic analysis that addresses the proposed land use change. RECOMMENDATION: That the City Council adopt Resolution approving a three- party agreement between the City of Chula Vista; LLG; and The EastLake Company, LLC for traffic consulting services related to the EastLake Village Center East project. DISCUSSION: The proposed EastLake Village Center East project is proposed as a commercial retail center consisting ora 100,000 square foot (SF) Junior Department store (Kohl's) with two smaller out-pads ranging from 4,500 SF to 8,200 SF. The proposed development would be an extension of the Village Center Marketplace (formerly EastLake Village Center North). A General Plan Amendment (GPA) and amendments to the EastLake II General Development Plan (GDP) and the EastLake Village Center North Supplemental Sectional Planning Area (SPA) Plan are proposed to change the land use designation on the 9.3-acre site from Commercial-Professional and Administrative to Commercial-Retail. The project site is a parcel (VC-3) of the approved EastLake Village Center North project (adopted on July 23, 2002 by Resolution 2002-64) and was analyzed in the Mitigated Negative Declaration for the EastLake Villge Center North project (IS-01-042) dated June 11, 2002. A traffic analysis was prepared for this previous project by Linscott, Law & Greenspan (LLG). An updated study for the current proposal is now needed. Page 2,1tem [{ Meeting Date 3/25/03 LLG is being recommended as the traffic consultant for the EastLake Village Center East project because the firm prepared the traffic analysis for the earlier project and understands the assumptions used in analyzing the approved land use for the subject site. Further, LLG understands the complex, inter-related issues of traffic in the eastern territories. LLG has performed well when previously retained by the City of Chula Vista and has the resoumes to perform the work in the timeframes set forth. Staff believes that it is in the best interests of the City to waive the City's formal bidding process and approve the agreement with LLG based on the foregoing. Staffhas negotiated an agreement, pending Council approval, with LLG for $29,000, which includes $20,000 in contingency to provide a traffic impact analysis study for the project (Attachment A). If additional work is needed (i.e., offsite traffic analysis), the contingency of up to $20,000 maybe used to complete the project upon direction by City staff. This consultant is currently doing work for the City. These additional services will increase the amount of work they are doing for the City over the Council approved limit of $50,000. Therefore, this contract is coming before the City Council. FISCAL IMPACT: None. The EastLake Company shall provide necessary funding for completion of the traffic impact report. RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CITY'S FORMAL BIDDING PROCESS AND APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; L1NSCOTT, LAW & GREENSPAN, ENGiNEERS, (CONSULTANT); AND THE EASTLAKE COMPANY, LLC, (APPLICANT) FOR THE EASTLAKE VILLAGE CENTER EAST PROJECT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City of Chula Vista ("City"), The EastLake Company ("Applicant"), and Linscott, Law and Greenspan, Engineers (LLG) ("Consultant") entered into an agreement effective September 19, 2001 and amendment to agreement effective February 19, 2002, whereby LL&G agreed to prepare a traffic impact analysis and traffic impact report for the EastLake Village Center North project and this agreement has been satisfied and the account closed; and, WHEREAS, the Applicant has requested an amendment to the land use designation for a 9.3-acre parcel of the EastLake Village Center North project called EastLake Village Center East ("Proposed Project") from Professional Administrative to Commercial Retail; and, WHEREAS, the Applicant has deposited an initial sum for traffic consulting services for the EastLake Village Center East project; and WHEREAS, LL&G is uniquely qualified to serve at the Consultant for this contract based on their familiarity with the project and project site, demonstrated ability to perform while working as a Consultant to the City on other projects, their familiarity with project requirements, and proven ability to work with and interpret modeling data provided by the San Diego Association of Governments; and, WHEREAS, LL&G represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City of Chula Vista within the necessary timeframes; and, WHEREAS, the parties now desire to enter into a three-party agreement to prepare a traffic analysis and report for the proposed project; and, WHEREAS, pursuant to Section 3.2.2 of the Original Agreement, the Applicant agrees to pay for such Additional Services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby waive the City's formal bidding process and approve the three-party agreement between the City of Chula Vista; Linscott, Law & Greenspan Engineers and The EastLake Company ("Applicant") to prepare a traffic impact analysis for EastLake Village Center East. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula Vista. Presented by Robert A. Letter Director of Planning and Building Approved as to form by City Attorney J:~attorncy\rcso\LLG EL Villagc Center East 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 6/Affvf Moore City Attorney AGREEM~ENT WITH LINSCOTT, LAW & GREENSPAN, ENGINEERS, AND THE EASTLAKE COMPANY FOR THE EASTLAKE VILLAGE CENTER EAST PROJECT Three Party Agreement Between City of Chula Vista, Linscott, Law & Greenspan, Engineers, Consultant, and The EastLake Company, LLC, Applicant For Consulting Work to be Rendered for EastLake Village Center East 1. Parties. This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the attached Exhibit A as "Consultant", Linscott, Law & Greenspan, Engineers, whose business form and address are indicated on the attached Exhibit A, and the person designated on the attached Exhibit A as "Applicant", The EastLake Company, LLC, whose business form and address are indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations. 2.1. Warranty of Ownership. Applicant warrants that Applicant is the owner of land ("Property") commonly known as, or generally located as, described on Exhibit A, Paragraph 1, or has an option or other entitlement to develop said Property. 2.2. Applicant desires to develop the Property with the Project described on Exhibit A, Paragraph 2, and in that regard, has made application ("Application") with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, Paragraph 3. 2.3. In order for the City to process the Application of Applicant, Work of the general nature and type described in Exhibit A, Paragraph 4, ("Work") will need to be completed. 2.4. City does not presently have the "in-house" staff or resources to process the application within the time frame requested for review by the Applicant. 2.5. This agreement proposes an arrangement by which Applicant shall retain, and be liable for the costs of retaining, Consultant, who shall perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. Three Par~y Agreement 3/18/2003 Page 1 2.6. Additional facts and cimumstances regarding the background for this agreement are set forth on Exhibit B. 3. Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: 3.1. Employment of Consultant by Apvlicant, Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled "General Nature of Consulting Services", ("General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 5, entitled "Detailed Scope of Work", ("Detailed Services"), and all services reasonably necessary to accomplish said General Services and Detailed Scope of Work, and shall deliver such documents required ("Deliverables") herein, all within the time frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are set forth, within a reasonable period of time for the diligent execution of Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perform said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional mariner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation of Consultant. Applicant shall compensate Consultant for all services rendered by Consultant without regard to the conclusions reached by the Consultant, and according to the terms and conditions set forth in Exhibit C adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, by paying said amount to the City, within 15 days of Consultant's billing, or in accordance with the security deposit provisions of Paragraph 3.3 and Exhibit C, if checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or Three Party Agreement 3/18/2003 Page 2 ll"q in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liable for the compensation unless it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. 3.2.1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ("Additional Services") are needed from Consultant of the type Consultant is qualified to render or reasonably related to the Services Consultant is otherwise required to provide by this Agreement, the Consultant agrees to provide such additional services on a time and materials basis paid for by Applicant at the rates set forth in Exhibit C, unless a separate fixed fee is otherwise agreed upon in writing for said Additional Work between the parties. 3.2.2. In the event that the City shall determine that additional work is required to be performed above and beyond the scope of work herein provided, City will consult with Applicant regarding the additional work, and if thereupon the Applicant fails or refuses to arrange and pay for said Additional Services, the City may, at its option, suspend any further processing of Applicant's Application until the Applicant shall deposit the City's estimate of the costs of the additional work which the City determines is or may be required. Applicant shall pay any and all additional costs for the additional work. 3.2.3. Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time reduce the Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Pawnent of Compensation by Applicant. 3.3.1. Deposit. As security for thepayment ofConsultantbyApplicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3.1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this agreement. 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and Three Party Agreement 3/18/2003 Page 3 upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this Agreement and any claims resulting therefrom. 3.3.1.1.4. Applicant shall be notified within 30 days after of the use of the Deposit in any manner. Nothing heroin shall invalidate use of the Deposit in the manner herein authorized. 3.3.1.1.5. At such time as City shall reasonably determine that inadequate funds remain on Deposit to secure future compensation likely due Consultant or City, City may make demand of Applicant to supplement said Deposit Amount in such amount as City shall reasonably specify, and upon doing so, Applicant shall, within 30 days pays said amount ("Supplemental Deposit Amount") to City. Said Supplement Deposit Amount or Amounts shall be governed by the same terms of trust governing the original Deposit. 3.3.2. Withholding of Processing. In addition to use of the Deposit as security, in order to secure the duty of Applicant to pay Consultant for Services rendered under this agreement, City shall be entitled to withhold processing of Applicant's Application upon a breach of Applicant's duty to compensate Consultant. 4. Non-Service Related Duties of Consultant. 4.1. Insurance. Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of"A, Class V" or better, or shall meet with the approval of the City: 4.1.1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4.1.2. Commemial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Three Party Agreement 3/18/2003 Page 4 4.1.3. Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coverage. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. 4.2.2. Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City and Applicant demonstrating same. 4.3. Public Statements. All public statements and releases to the news media shall be the responsibility of the City and the Applicant. The Consultant shall not publish or release news items, articles or present lectures on the Project, either during the course of the study or after its completion, except on written concurrence of the City and Applicant. 4.4. Communication to Applicant. Consultant shall not communicate directly to the Applicant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City. The Consultant may request such meetings with the Applicant to ensure the adequacy of services performed by Consultant. 5. Non-Compensation Duties of the Applicant. 5.1. Documents Access. The Applicant shall provide to the Consultant, through the City, for the use by the Consultant and City, such documents, or copies of such documents requested by Consultant, within the possession of Applicant reasonably useful to the Consultant in performing the services herein required of Consultant, including but not limited to those described in Exhibit A, Paragraph 7. 5.2. Property Access. The Applicant hereby grants permission to the City and Consultant to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of the Applicant. Consultant shall Three Party Agreement 3/18/2003 Page 5 promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 5.3. Communication to Consultant. Applicant shall not communicate directly to the Consultant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City. The Applicant may request such meetings as they desire with the Consultant to ensure the adequacy of services performed by Consultant. 6. Administrative Representatives. Each party designates the individuals ("Administrators") indicated in Exhibit A, Paragraph 8, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 7. Conflicts of Interest. 7.1. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 9, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report his economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 9 of Exhibit A, or if none are specified, then as determined by the City Attorney. 7.2. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. Three Party Agreement 3/18/2003 Page 6 7.3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory o fConsultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. 7.4. Promise Not to Acquire Conflictine 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. 7.5. Duty to Advise of Conflictin~ Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 7.6. Specific Warranties A~ainst Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in the property which is the subject matter of the Project, or in any property within 10 radial miles from the exterior boundaries of the property which is the subject matter of the Project, or ("Prohibited Interest"). Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates by Applicant or by any other party as a result of Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement. Three Party Agreement 3/18/2003 Page 7 8. Default of the Consultant for Breach. This agreement may be terminated by the City for default if the Consultant breaches this agreement or if the Consultant refuses or fails to pursue the work under this agreement or any phase of the work with such diligence which would assure its completion within a reasonable period of time. Termination of this agreement because of a default of the Consultant shall not relieve the Consultant from liability of such default. 9. City's Right to Terminate Payment for Convenience, Documents. 9.1. Notwithstanding any other section or provision of this agreement, the City shall have the absolute right at any time to terminate this agreement or any work to be performed pursuant to this agreement. 9.2. In the event of termination of this agreement by the City in the absence of default of the Consultant, the City shall pay the Consultant for the reasonable value of the services actually performed by the Consultant up to the date of such termination, less the aggregate of all sums previously paid to the Consultant for services performed after execution of this agreement and prior to its termination. 9.3. The Consultant hereby expressly waives any and all claims for damage or compensation arising under this agreement,, except as set forth herein, in the event of such termination. 9.4. In the event of termination of this agreement, and upon demand of the City, the Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and all other materials and documents prepared by the Consultant in performance of this agreement, and all such documents and materials shall be the property of the City; provided however, that the Consultant may retain copies for their own use and the City shall provide a copy, at Applicant's cost, of all such documents to the Applicant. 9.5. Applicant shall have no right to terminate Consultant, and shall not exercise any conlrol or direction over Consultant's work. 10. Administrative Claims Requirement and Procedures. No suit shall be brought arising out of this agreement, against the City, unless a claim has fn:st been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions of which are incorporated by this reference as if set fully set forth herein. Three Party Agreement 3/18/2003 Page 8 I1-1 1 1. Hold Harmless and Indemnification. 11.1. Consultant to Indemnify Ciw and Avvlicant re Iniuries. 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 (ir) those claims, damages, liability, costs and expenses (including without limitation, attorney fees) arising from the sole negligence or sole willful misconduct of the City its officers, employees, or (ii) with respect to losses arising from Consultant's professional errors or omissions, those claims arising from the negligence or willful misconduct of City its officers, 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. 12. Business Licenses. Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title 5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13.1. Consultant not authorized to Represent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. 13.2. Notices. Ail notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified for the parties in Exhibit A. Three Party Agreement 3/18/2003 Page 9 Ii-I¢ 13.3. Entitlement to Subsequent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. 13.4. Entire Am'cement. . This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and underst.anding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. 13.5. Capacity of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13.6. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the sa.me shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and Tl~ree Party Agreement 3/18/2003 Page 10 11-15 agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance ora payment by either party with knowledge of the existence ora breach shall not operate or be construed to operate as a waiver of any such breach. 13.12. Remedies. The fights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. 13.13. No Additional Beneficiaries. Despite the fact that the required performance under this agreement may have an affect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this agreement. Notwithstanding the foregoing, this is a three party agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. 14. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. (End of Page. Next Page is Signature Page.) Three Party Agreement 3/18/2003 Page 11 Sianature Pa~e NOW THEREFORE, the parties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista Attest: by: Stephen C. Padilla, Mayor Susan Bigelow, City Clerk Approved as to Form: Ann Moore, City Attorney Dated: ~Eo~ Eng?eers By: Dated: Applicant: The ~astL/)l~ Company, LLC By: Guy~s~ce Pre si dent 3/18/2(~03 Three Party Agreement Page 12 Reference Date of Agreement: Effective Date of Agreement: Exhibit A March 25, 2003 Date of City Council Approval of Agreement City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: Linscott, Law & Greenspan, Engineers Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 1565 Hotel Circle South, Suite 310, San Diego, CA 92108 Applicant: The EastLake Company, LLC Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 900 Lane Avenue, Chula Vista, CA 91914 1. Property (Commonly known address or General Description): 9.3-acre EastLake Village Center East located at the northeast comer of Otay Lakes Road and EastLake Parkway 2. Project Description ("Project"): Project includes the following proposals: · Amendment to the City of Chula Vista General Plan to change the land use designation of the site from Commercial-Professional Administrative Commercial to Commercial-Retail; · Amendment to the EatLake 13[ General Development Plan to change the land use designation of the site from Professional Achninistrative to Commercial Retail. · Amendment to the EastLake Village Center North Supplemental Sectional Planning Area Plan (EastLake I SPA Plan) comprising of minor changes to tables and exhibits within the document. No changes to the Development Phasing or Design Guidelines are being proposed. Three Party Agreement 3/18/2003 Page I3 · Amendment to the EastLake Il Planned Community District Regulations Land Use District Map to change the designation of the site from Professional Administrative/Limited Retail to Retail and change Permitted Uses matrix to include the proposed uses. · Amendment to the EastLake Village Center North Supplemental Public Facilities Finance Plan consisting of minor changes to tables and exhibits throughout the document. 3. Entitlements applied for: DRC Approval and Parcel Map 4. General Nature of Consulting Services ("Services--General"): Consultant shall prepare a traffic impact study to the satisfaction of the Environmental Review Coordinator and in accordance with CEQA and to be used in the CEQA document that will be prepared for the project. 5. Detailed Scope of Work ("Detailed Services"): Consultant shall conduct traffic impact analysis and prepare a traffic impact letter report. The scope of work includes, but is not limited to, the following tasks: 1. Prepare a trip generation comparison between the land use assumed for the site in the May 8, 2002 LLG traffic study and the proposed land use. 2. Assign project traffic to the proposed project driveways. 3. Determine if adequate access is proposed. 4. Recommend access improvements if necessary. 5. Prepare a Traffic Letter Report detailing the results of the analysis. 6. Based on City staffand public comments, revise the screenchecks and public review draf~ of the traffic letter report. 7. Attend two meetings with City Staff and three heatings (RCC, Planning Commission and City Council). 8. Prepare the following versions of the traffic letter report: up to two screencheck versions of the letter report prior to public review draft (all stapled), one public review draft version which will be an appendix to the City's CEQA document (one master copy unbound and electronic version) and one final version incorporating any revisions required by the City in response to public comment (one master copy unbound and electronic file). A total of four sets of deliverables will be required as set forth below. 6. Schedule, Milestone,.Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement 3/18,'2003 Three Party Agreement Page 14 Dates or Time Limits for Delivery of Deliverables: First Screencheck Draft Traffic Letter Report - three weeks from effective date of Agreement and no later than April 15, 2003; Second Screencheck Draft Traffic Letter Report - one week after Consultant receives City comments on first screencheck traffic report and has incorporated those comments into this screencheck and no later than April 24; Public Review Draft Traffic Letter Report - One week after Consultant receives City comments on second screencheck traffic report and has incorporated those comments into this screencheck and no later than May 6; and Final Traffic Letter Report - One week after close of Public Review of the CEQA document and no later than June 30. Dates for Completion of all Consultant Services: The term of this agreement shall be for six months from the effective date of this agreement or upon approval of the Final Traffic Letter Report to be included in the Final CEQA document for the Project by the Environmental Review Coordinator and City Engineer, whichever occurs later. 7. Documents to be provided by Applicant to Consultant: (X) site plans ( ) grading plans ( ) architectural elevations (X) project description. 0 other: 8. Contract Administrators. City: Marilyn R.F. Ponseggi, Environmental Review Coordinator Applicant: Guy Asaro, The EastLake Company, LLC Consultant: John Boatman, Linscott, Law & Greenspan Engineers 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. Category No. 1. Category No. 2. Category No. 3. Investments and sources of income. Interests in real property. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. 3/18/2003 Three PartyAgreement Page 15 I1- 0 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. 10. Insurance Requirements: ( ) Statutory Worker's Compensation Insurance ( ) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage). 3/18/2003 Tl~ree Party Agreement Page 16 Exhibit B AdditionaI Recitals WHEREAS, the City of Chula Vista ("City"), The EastLake Company ("Applicant"), and Linscott, Law and Greenspan, Engineers (LLG) ("Consultant") entered into an agreement effective September 19, 2001 and amendment to agreement effective February 19, 2002, whereby LLG agreed to prepare a traffic impact analysis and traffic impact report for the EastLake Village Center North project and this agreement has been satisfied and the account closed; and, WHEREAS, the Applicant has requested an amendment to the land use designation for a 9.3- acre parcel of the EastLake Village Center North project called EastLake Village Center East ("Proposed Project") from Professional Administrative to Commercial Retail; and, WHEREAS, the Applicant has deposited an initial sum for traffic consulting services for the EastLake Village Center East project; and WHEREAS, LLG is uniquely qualified to serve at the Consultant for this contract based on their familiarity with the project and project site, demonstrated ability to perform while working as a Consultant to the City on other projects, their familiarity with project requirements, and proven ability to work with and interpret modeling data provided by the San Diego Association of Governments; and, WHEREAS, LLG represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City of Chula Vista within the necessary timeframes. Three Party Agreement 3/18/2003 Page t7 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. (X) Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the mounts and at the times or milestones set forth below: (X) Single Fixed Fee Amount: $29,000 Milestone or Event Amount or Percent Of Fixed Fee 1. Submittal of first screencheck draft traffic report 2. Acceptance of the draft traffic report by City staff for public review 3. Acceptance of the final traffic report by City staff 4. Satisfactory completion of the contract as determined by City Environmental Review Coordinator 5. Contingency Fee* (for offsite traffic analysis, if needed, or related task as determined at the sole discretion of the City's Environmental Review Coordinator) Total Fixed Fee Amount $4,500 (50%) $1,800 (20%) $1,800 (20%) $900 (10%) $20,000.00 $29,000.00 * Pursuant to Section 3.2.2 of this contract. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the mounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. Three Party Agreement 3/18/2003 Page 18 Fee for Phase Said Phase 3. $ 4. $ ( ) Time and Materials For performance of the General and Detailed Services of Consultant as herein required, Applicant shall pay Consultant for the productive hours of time and material spent by Consultant in the performance of said Services, at the rates or amounts set forth hereinbelow according to the following terms and conditions: ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the General and Detailed Services herein required of Consultant for including all Materials and other "reimburseables" ("Maximum Compensation"). The City will also receive a standard administrative fee amounting to 10% of the contract. (X) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $9,000 (plus $20,000 if negotiated as set forth above) ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City Council. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. 3/18/2003 Three Party Agreement Page 19 Category of Emr~loyee Rate Schedule Hourly Name Rate Principal J. Boarman $160 Transp. Eng. 3 N. Prasad* $115 Transp. Planner II J. Nunez* $80 CAD D. Spinler* $75 Word Processor L. Carr* $50 * Other individuals from the Consultant firm may be substituted in place of the names listed solely at the discretion of the City. ( ) Consultant's hourly rates may increase by 6% for services rendered after Materials Separately Paid For by Applicant ( ) Materials Reports Copies ( ) Travel ( ) Printing ( ) Postage ( ) Delivery ( ) Long Distance Telephone Charges ( ) Other Actual Identifiable Direct Costs Cost or Rate None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. 3/18/2003 Th~'ee Party Agreemem Page 20 11- 5 Deposit (X) Deposit Amount: $29,000 (X) Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consultant, if this paragraph is "checked", upon City's receipt of billing by Consultant, and determination by City in good faith that Consultant's billing is proper, a judgment for which Applicant agrees to hold City harmless and waive any claim against City, City shall pay Consultant's billing from the amount of the Deposit. If Applicant shall protest the propriety of a billing to City in advance of payment, C!ty shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. Applicant agrees to maintain a minimum balance of__ immediately replenished upon the request of the City. in subject account that shall be ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. Upon determination by City made in good faith that Consultant is entitled to compensation which shall remain unpaid by Applicant 30 days after billing, City may, at its option, use the Deposit to pay said billing. (X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (X) Other: In accordance with milestones identified herein. B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month (X) Other: Upon completion of the milestones identified herein. City's Account Number: To be assigned after agreement is processed. Security for Performance 3/I8/2003 Three Party Agreement Page 21 ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ (X)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, the following Retention Percentage until the City determines that the Retention Release Event, listed below, has occurred: (X) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (X) Completion of All Consultant Services to the satisfaction of the Environmental Review Coordinator ( ) Other: 3/18/2603 Three Party Agreement Page 22 Council Agenda Statement Item No ] ~ Meeting Date March 25, 2003 ITEM TITLE: SUBMITTED BY: REVIEWED BY: Resolution To Amend the FY 03 Household Hazardous Waste Fund Budget and Transfer $30,500 from the Supplies and Services Category to the Capital Outlay Category for the Purpose of Purchasing a Scale and Forklift. Michael T. Meacham, Special Operations Manager David D. Rowlands, Jr., City Manage~/t~ (4/5tbs Vote Yes X No ) BACKGROUND: On August 28, 2001 the City of Chula Vista adopted Resolution 2001-285, for the purpose of accepting a multi-year $300,000 grant from the California Integrated Waste Management Board to fund household hazardous waste and electronic waste education, collection and disposal programs. The grant was designed to serve Chula Vista, Imperial Beach, National City and Coronado. A portion of the grant funds were intended to offset costs of operating the regional Household Hazardous Waste (HHW) drop off facility located at the City Public Works Yard on Maxwell Road. In February of 2003 the State approved a change in the grant that allows the City to use the grants remaining funds to purchase an electric forklift and scale that will assist with additional household hazardous waste collection efforts by controlling future costs. RECOMMENDATION: That the City Council adopt the resolution authorizing the transfer of funds from HHW Supplies and Services to Capital for the purchase of an electric forklift and platform weight scale. BOARD AND COMMISION RECOMMENDATION: N/A DISCUSSION: Paints, solvents, adhesives, pesticides, herbicides, pool chemicals, and other household hazardous wastes should not be disposed of in the trash, storm drains, or sewer. The City of Chula Vista now operates a regional household hazardous waste facility that provides South Bay residents with a convenient and cost effective method of properly disposing of their waste. The facility is located at 1800 Maxwell Road, just north of the Public Works Yard and is open every Saturday accept major holidays from 9 a.m. to 1 pm. The facility is licensed for residents, not businesses and residents are limited to 15 gallons or 125 pounds of material per vehicle. The City pays approximately $72 per vehicle and the resident/generator pays a $5 co-payment for the first load each calendar year. Household Hazardous Waste Fund Transfer March 25, 2003 Page 2 Resolution 2001-285 appropriated $300,000 in state grant funds to the household hazardous waste fund. The appropriation established a budget to support the Household Hazardous Waste Facility, temporary mobile collection events, public education and publicity efforts and related personnel costs. The original grant application and budget did not contemplate capital expenditures. The State recently approved a staff request that approximately $30,500 of the remaining grant funds be used to purchase a forklift and scale that will help to reduce future costs of operating the permanent household hazardous waste facility. The purchase price of the forklift includes a five-year maintenance agreement. The cost of electricity for operating the forklift and weight scale will be fully covered by the 4-kilowatt photovoltaic (solar) system that currently generates more electricity than the HHW facility and equipment require. The remaining electricity is credited against the Public Works Yard use. The grant will fully reimburse the City for the cost of the forklift and the scale. FISCAL IMPACT: There is no fiscal impact. The proposed expenditures have been appropriated by Council as part of Resolution 2001-285 and will be fully reimbursed by the State as part of the Household Hazardous Waste Grant. The equipment should help to control future Special Operations Division costs for operating the household hazardous waste facility. RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDiNG THE BUDGET BY TRANSFERRiNG $30,500 FROM THE HOUSEHOLD HAZARDOUS WASTE FUND, SUPPLIES AND SERVICES CATEGORY TO THE CAPITAL OUTLAY CATEGORY FOR THE PURPOSE OF PURCHASING A SCALE AND FORKL1FT WHEREAS, on August 28, 2001, the City of Chula Vista adopted Resolution 2001-285, for the purpose of accepting a multi-year $300,000 grant from the California Integrated Waste Management Board to fund household hazardous waste and electronic waste education, collection and disposal programs; and WHEREAS, a portion of the grant funds were intended to offset costs of operating the regional Household Hazardous Waste (HHW) drop off facility located at the City Public Works Yard on Maxwell Road; and WHEREAS, in February of 2003 the State approved a change in the grant that allows the City to use the grant's remaining funds to purchase an electric forklift and scale that will assist with additional household hazardous waste collection efforts by controlling future costs. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend the budget by transferring $30,500 from HHW Supplies and Services to the Capital Outlay Category for the purpose of pumhasing a scale and forklift. Presented by Michael T. Meacham Special Operations Manager J:/at tomey/reso/appropriation HHW Approved as to form by COUNCIL AGENDA STATEMENT ITEM MEETING DATE 3/25/2003 ITEM TITLE: Resolution Adopting Phase III Classification and Compensation Schedule and amending the FY03 budget therefor SUBMITTED BY: Marcia Raskin, Director of Human Resources/~ REVIEWED BY: City Manager¢ (4/5th Vote: Yes X__ No--) SUMMARY: Council is being asked to amend the budget by approving classifications and compensation adjustments that are being recommended as the result ora formal classification study. RECOMMENDATION: Adopt the resolution to amend the budget by approving the classification results of the Phase I~ study and the corresponding salary schedule to be effective the pay period beginning April 4, 2003. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: The Human Resources Department recently completed Phase III of the city-wide classification study, utilizing the same methods and terminology established throughout the Shannon & Associates review of the clerical, support, and custodial series. The study included a review of the work performed, the scope and complexity of the assignments and the responsibility of the positions. A large majority of the positions reviewed in Phase ~I are in the Public Works Operations Department. Human Resources staff reviewed a total of 160 positions or 46 classifications. Of the 160 positions 144 are in the Public Works Operations Department, 2 in the Nature Center, 2 in Finance, 6 in Engineering, 5 in Administration, and 1 in Human Resources. As for compensation, of the 160 positions reviewed it is proposed that 16 receive an increase, 143 stay relatively at the same salary level, and 1 new position be created. Also as part .of the reclassification of two positions, Human Resources staff is recommending that two incumbents be moved from the CVEA bargaining unit to the Mid-management group. City staffand CVEA representatives have met and conferred over the impacts of this study and are in agreement. 1 13-1 FISCAL IMPACT: For the current budget year, the cost increase associated with the Phase II salary adjustments is projected to be $28, 197. There are sufficient salary savings in the affected departments' current budgets to cover this increase. In FY04, the total cost increase is estimated at $112,000, 40% of which will be offset by increased revenue. Ftmding for the remaining net cost of $67,200 will included in the FY04 proposed budget. ATTACHMENTS: Phase m Salary Table, Phase 1]/Budgeted Position Changes. Administration Engineering Finance Human Resources MIS Nature Center Public Works ATTACHMENT A Phase Ill Budgeted Position Changes Office Specialist Administrative Technician Recycling Ranger I Recycling Ranger II Solid Waste Specialist Office Specialist Senior Storekeeper Storekeeper I Risk Management Specialist None Nature Center Maintenance Specialist Public Works Technician II Public Works Technician III Public Works Technician II Construction Specialist II (Carp/Lksm) Construction Specialist II (Elec) Construction Specialist II (HVAC) Construction Specialist II (Carp/Lksm) Construction Specialist II (Paint) Construction Specialist II (Plumb) (2) Construction Specialist l Construction Specialist I Construction Specialist II (Elec) Construction Specialist II (HV^C) Electronics Technician, Senior Electronic Shop Technician (2) Equipment MecDanic II (5) Equipment Mechanic, Senior Town Gardener Maintenance Worker II Paint Striping Operator Tree Trimmer, Supervising Pump Mechanic, Supervising Pump Maintenance Mechanic (4) Secretary Senior Administrative Secretary Recycling Specialist I Recycling Specialist II Senior Recycling Specialist Senior Secretary Storekeeper Supervisor Storekeeper Sr. Risk Management Specialist Microcomputer Specialist Custodian Public Works Specialist Senior Public Works Specialist None Carpenter Electrician HVAC Technician II Locksmith Painter Plumber (2) HVAC Technician I Painter Senior Electrician Senior HV^C Technician Electronics Technician Supervisor Electronics/Equipment Installer (2) Equipment Mechanic (5) Senior Equipment Mechanic Gardener II Senior Maintenance Worker Signing & Striping Supervisor Tree Trimmer Supervisor Pump Maintenance Supervisor Pump Maintenance Technician (4) 3/18/2003 Phase III Salary Table (Bi-weekly Salaries) New Classification A B C D E: Carpenter 1,512.35 1,588.06 1,667.61 1,751.00 1,838.21 Custodian 1,083.79 1,137.98 1,194.33 1,253.95 1,316.82 Electrician 1,587.68 1,667.30 1,750.67 1,837.78 1,929.58 Electronics Technician 1,747.08 1,833.96 1,925.57 2,021.89 2,122.93 Electronics Technician Supervisor 2,008.20 2,108.80 2,213.33 2,324.68 2,440.91 Electronics/Equipment Installer 1,443.58 1,515.38 1,591.10 1,670.75 1,754.34 Equipment Mechanic 1,470.47 1,543.52 1,621.31 1,701.95 1,787.33 Equipment Operator 1,573.15 1,651.35 1,734.19 1,820.77 1,911.99 Fire Apparatus Mechanic 1,824.55 1,916.01 2,011.29 2,112.29 2,218.07 Gardener I 1,083.52 1,137.32 1,193.95 1,254.35 1,316.65 Gardener II 1,192.06 1,251.13 1,314.07 1,378.95 1,448.68 HVAC Technician I 1,443.15 1,5t5.31 1,591.07 1,670.63 1,754.16 HVAC Technician II 1,587.68 1,667.30 1,750.67 1,837.78 1,929.58 Locksmith 1,512.35 1,588.06 1,667.61 1,751.00 1,838.21 Maintenance Worker I 1,083.52 1,137.32 1,193.95 1,254.35 1,316.65 Maintenance Worker II 1,192.06 1,251.13 1,314.07 1,378.95 1,448.68 Mechanic Assistant 1,225.37 1,286.63 1,350.97 1,418.51 1,489.44 Microcomputer Specialist 2,202.01 2,311.58 2,426.88 2,548.85 2,675.57 Nature Center Gardener 1,430.05 1,501.17 1,576.05 1,654.66 1,737.95 Painter 1,374.93 1,443.30 1,515.42 1,591.29 1,670.89 Parks Supervisor 1,808.29 1,899.10 1,993.81 2,093.41 2,198.85 Plumber 1,512.18 1,588.02 1,667.61 1,750.95 1,838.02 Public Works Specialist 1,402.98 1,472.73 1,546.46 1,623.18 1,704.90 Public Works Supervisor 1,808.29 1,899.10 1,993.81 2,093.41 2,198.85 Pump Maintenance Supervisor 1,808.29 1,899.10 1,993.81 2,093.41 2,198.85 Pump Maintenance Technician 1,543.91 1,621.09 1,702.11 1,787.08 1,876.53 Recycling Specialist I 1,329.11 1,395.56 1,465.34 1,538.61 1,615.54 Recycling Specialist II 1,462.02 1,535.13 1,611.88 1,692.48 1,777.10 .Secretary 1,171.83 1,230.30 1,291.71 1,356.42 1,424.08 Senior Administrative Secretary 1,645.40 '1,727.55 1,814.05 1,904.90 2,000.10 Senior Electrician 1,825.59 '1,916.87 2,012.72 2,113.35 2,219.02 Senior Equipment Mechanic 1,691.01 1,775.56 1 ~864.34 1,957.55 2,055.43 Senior Gardener 1,430.05 1,501.17 1,576.05 1,654.66 1,737.95 Senior HVAC Technician 1,825.59 1,916.87 2,012.72 2,113.35 2,219.02 Senior Maintenance Worker 1,430.05 '~ ,501.17 1,576.05 1,654.66 1,737.95 Senior Public Works Specialist 1,683.21 1,767.48 1,856.03 1,948.83 2,045.89 Senior Recycling Specialist 1,681.32 ~ ,765.39 1,853.66 1,946.34 2,043.66 Senior Risk Management Specialist 2,167.71 2,276.11 2,389.90 2,509.41 2,634.87 Senior Tree Tdmmer 1,573.15 1,651.35 1,734.19 1,820.77 1,911.99 Signal Systems Engineer 2,225.79 2,336.91 2,453.29 2,575.95 2,704.90 Signing & Stdping Supervisor 1,808.29 1,899.10 1,993.81 2,093.41 2,198.85 Storekeeper 1,191.51 '1,251.41 1,314.06 1,379.50 1,448.61 Storekeeper Supervisor 1,429.50 1,501.71 1,576.79 1,654.76 1,737.56 Traffic Devices Technician 1,746.66 t ,833.61 1,925.29 2,021.71 2,122.83 Traffic Devices Technician Supervisor 2,008.47 2,108.65 2,214.50 2,325.10 2,441.35 Tree Trimmer 1,311.35 1,376.49 1,445.41 1,518.11 1,593.64 Tree Trimmer Supervisor 1,808.29 1,899.10 1,993.81 2,093.41 2,198.85 3/18/20o3 Pagelofl/~¢~7~ RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING PHASE Ill CLASSIFICATION AND COMPENSATION SCHEDULE AND AMENDING THE FISCAL YEAR 03 BUDGET THEREFOR WHEREAS, the Human Resources Department recently completed Phase 11I of the city-wide classification and compensation study; utilizing the same methods and terminology established throughout the Shannon & Associates review of the clerical, support, and custodial series; and WHEREAS, the study included a review of the work performed, the scope and complexity of the assignments and the responsibility of the positions; and WHEREAS, a large majority of the positions reviewed in Phase III are in the Public Works Operations Department; and WHEREAS, Phase III consists of a total of 160 positions or 46 classifications, and it is proposed that 16 positions receive an increase, 143 positions stay relatively at the same salary level, and 1 new position be created; and WHEREAS, as part of the reclassification of two positions, Human Resources staffis recommending that two incumbents be moved from the CVEA bargaining unit to the Mid- Management group; and WHEREAS, City staff and CVEA representatives have met and conferred over the impacts of this study and are in agreement. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend the budget by approving the classification results of the Phase III study and the corresponding salary schedule as shown on Attachment A, attached hereto and incorporated herein by reference as if set forth in full, effective the pay period beginning April 4, 20O3. Presented by ~/larcia Raskin Director of Human Resoumes Approved as to form by Ann Moore City Attorney J:\attorney\reso\classification study Phase II[ COUNCIL AGENDA STATEMENT ITEM 14 MEETING DATE: March 25, 2003 ITEM TITLE: Resolution approving the City's application for grant funds under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for construction of a new library at the northwest comer of East H Street and Paseo Ranchero (Rancho del Rey Library); making all necessary certifications, including certifying the Library project budget and committing local matching funds and supplemental funds; approving the Joint Cooperative Agreement with the Chula Vista Elementary School District for the joint venture project; and authorizing the Mayor to execute said agreement and all documents necessary to complete the grant application. SUBMITTED BY: Deputy City Manager Palmer~ City Manager~/~' ," REVIEWED BY: ~ ? 4/Sths Vote: Yes __ No X On August 20, 2001 the City Council directed staff to prepare an application for a "California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000" for the construction of the Rancho del Rcy Branch Library. On June 11, 2003, the City Cotmcil approved an application package for a round-one submittal for grant funds (see ATTACHMENT A - Minutes of the June 11, 2002 City Council Meeting). On Monday, December 2, the California Public Library Construction and Renovation Board considered 61 applications for state matching grants for public library construction projects in California. They funded 13 projects totaling $130,318,102. Unfortunately, Chula Vista's application to construct the Rancho del Rey Branch Library was not one of those funded. The City did receive a "very good" overall rating and an "excellent" rating on two of the four evaluation categories. Library staff has reviewed the State Library Review Panel commems regarding our first round application and has made the necessary and appropriate changes. The City is now ready to submit for round-two consideration (see ATTACHMENT B Library Bond Act Application). Applications are due to the State Library on Friday, March 28, 2003. It is expected that the Bond Act Board will make awards totaling $110 million in September. RECOMMENDATION: PAGE 2, ITEM t~ DATE: March 25, 2003 That Council adopt the resolution... (a) Approving the City's application for grant funds under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for construction ora new library at the northwest comer of East H Street and Pasco Ranchero; (b) Certifying the project budget of $22,528,800 contained in the Library Project Budget section of the Application Form; (c) Committing the City's local matching fund amount of $5,837,200 identified in the Library Project Budget as required by Education Code section 19995(a); (d) Committing to provide supplemental funds of $5,851,000 necessary to complete the project at the level stated in the project budget; (e) Certifying the availability of $5,837,200 in local matching and $5,851,000 in supplemental funds specified in the project budget when they are needed to meet cash flow requirements for the project; (f) Committing to operate the completed facility and provide direct service; committing that the facility shall be dedicated to public library direct service use for a period of 40 years following completion of the project; (g) Approving the Joint Cooperative Agreement with the Chula Vista Elementary School District for the joint venture program; (h) Certifying the accuracy and truthfulness of all information submitted in the Application Form and the required supporting documents. BOARD/COMMISSION RECOMMENDATION: At their meeting of May 22, 2002 the Library Board of Trustees approved the conceptual plan and the plan of service, and voted unanimously to submit the application to the City Council for round-one consideration. The Board is expected to endorse the re-submittal at their March 19, 2003 meeting. The Design Review Committee has met twice in workshop settings (March 4, 2002 and April 15, 2002) to review the conceptual plans as they progressed. At their meeting on May 13, 2002, the Resource Conservation Commission unanimously recommended that Initial Study IS-02-40 and the Mitigated Negative Declaration be accepted. PAGE3, ITEM I~4 DATE: March 25, 2003 The Chula Vista Elementary School Board has approved a revised Cooperative Agreement for the joint-venture program (see ATTACHMENT C - Joint Cooperative Agreement). DISCUSSION: In preparing for round-two submittal for California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 funds, Library staff has carefully reviewed the peer review panel comments about the City's round-one application. The Chula Vista Public Library's June 2002 application to construct the Rancho del Rey Branch Library received the following overall ratings~: Bond Act Criteria Rating Population Growth 215% Age and Condition 4 Needs of residents/Response of 3 proposed project of needs Plan of service integrates 4 appropriate technology Appropriateness of site 3 Financial capacity yes Specific comments fi.om the raters included: Unclear if the Early Childhood Specialist is a City or District employee · No plan of service for Wireless Lab · Non assignable square footage is marked on plan, but the total amount is not indicated · Conceptual plan square footage does not match building program · There is not a "Bom to Read" area noted on the conceptual plans, except for an area that is marked FAM/Parenting - but that is suppose to be a collection There is a large area labeled "Internet" but the building program says these work stations are dispersed into different areas · Some adjacencies required in the building program were not achieved (i.e. mail room is not adjacent to circulation and non-fiction stacks are not close to the reference collection) Intemet and YA square footage on conceptual plan does not match that called for in the building program · The cooperative agreement is not very specific about staffing or resources · Staffing for service levels should be clearer · Agreement does not identify staffing levels or funding sources · Agreement is not clear as to who pays for STRETCH & DASH I Ratings are based on a scale of 1 to 4, with 4 being the highest or best ranking. 4, DATE: March 25, 2003 · Need to clarify that this agreement is only with elementary school district · Need to highlight the fact that the location of the site is next to transit lines As can be seen by these comments, the majority of issues related to labeling on the conceptual plans and to the degree of specificity in the agreement between the City and the Chula Vista Elementary School District. Some of the other comments were actually addressed in the original application package, including the fact that Chula Vista has separate elementary and high school districts, that our joint venture agreement is with the elementary school district only, and that the site is adjacent to transit lines. In the rash of reading some 61 applications, we believe the raters just missed those facts. In regards to the more substantive comments, project architect, Carrier-Johnson has made all the necessary changes to conceptual plans (specifically on the floor plans). This includes improved labeling and providing square footage totals. Additionally, the joint cooperative agreement between the District and the City has been slightly revised to address the comments noted above. Staff also reviewed the text of a number of agreements between libraries and school districts that were approved for funding, to determine how they addressed these issues. As a result, the new Cooperative Agreement between the City and the District commits the Library and the District focuses on two programs. · Early Childhood Resource Center The "Bom to Read" Family Resource Center, located at the Rancho del Rey Branch Library, will provide children (infancy through kindergarten) and their parents, caregivers, and teachers with an Early Education Specialist, library books and materials, and programming to reinforce early childhood literacy skills, language skills, and parenting skills. · After School Program The Educational Services Division of the Library Department designs and implements the STRETCH and DASH elementary after-school programs at 28 elementary schools within the District. This very popular program will be administered from the Rancho del Rey Branch Library. The "Delivery of Library Materials Program" called for in the previous cooperative agreement, submitted for first-round consideration, has been dropped from this version. This cooperative agreement addresses the fact that both the City and the District cannot allocate unidentified resources and unappropriated funds for future programs. Therefore, the agreement specifies that we will provide those services consistent with the intent of the agreement for a period of 20 years from the effective date. That will allow the City and the District to make necessary changes as resources permit. DATE: March 25, 2003 For both the Bom to Read Family Resource Center and After School Programs, the City will be directly providing the service, while the District provides in-kind contributions such as ira'ming and technical assistance. Of course, the District currently contributes a large proportion of the funding for the After School Program. This agreement will not change the annual process of identifying that program's specific services and budget, funding sources, personnel, operational details, and evaluation criteria and then bringing those recommendations to both the District's Board of Education and the City Council for approval in a separate Memorandum of Understand'mg during the annual budget process. Finally, the Library Plan of Service, Library Building Program, Needs Assessment and the application form have been reviewed and revised as necessary to reflect all changes and to ensure accuracy and consistency between documents. Other parts of the original application, such as boundary survey of the site, the geotechnical report, the title report and verification of site ownership have not changed in this re-submittal. The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted Mitigated Negative Declaration, IS-02-040. Thus, no further environmental review or documentation is necessary. As stated above, round-two applications are due on Friday, March 28, 2003. During the first round, the State Library took approximately six months to review and rate the applications. Since, the State Library expects as many, if not more, applications in this round, a decision is not expected until September 2003. The process has been, and will continue to be, highly competitive. Based upon State Library staff recommendations, the Library Bond Act Board makes the fmal decisions as to which grant applications are funded. The board currently consists of: · Dr. Kevin Start, State Librarian · Philip Angelides, State Treasurer · Dede Alpert, State Senator · Ellen Corbett, State Assemblywoman · Steve Peace, Director, Deparlment of Finance · Barton Pachino, Governor's Appointee FISCAL IMPACT: The firm of Campbell-Anderson & Associates, Inc, has developed a new cost estimate for the building construction and site development to incorporate the State allowed cost-of- living increase since the first submittal of the first application for round-one consideration. That cost-of-living escalator is one fifth of one percent through the mid- point of construction and totals $133,600. building and site costs, which are now: PAGE 6, ITEM ~ DATE: March 25, 2003 That increase has been incorporated into the Building Costs $10,785,400 Site Costs $ 3,377,450 Sub-total $14,162,850 The other expenses have not changed since the first application. They are: Books & Materials $ 3,470,600 FF&E $ 2,418,100 Land Value $ 1,855,300 Interior Signage $ 72,800 Public Art $ 86,800 Fees/Permits $ 86,250 Misc. $ 376,100 Sub-total $ 8,365,950 Grand Total $22,528,800 State Grant Share DIF Share $10,840,600 $11,688,200 Therefore, should the City of Chula Vista be awarded a Library Bond Act grant, the project costs will total $22,528,800. Of that amount, the grant will reimburse the City $10,840,600. The Public Facilities Development Impact Fee will pay for the remaining $11,688,200. If the City is awarded the grant, the Library is expected to open in late fall 2005. The first full year of operations (FY 2006-07) are expected to cost $2,052,000. Because the entire application package is over 500 pages, only one complete package is available in the Council Office for review by Council Members. ATTACHMENTS A - Minutes of the June 11, 2002 Council Meeting B - Library Bond Act Application C - Joint Cooperative Agreement between the City and the District D - Site and Elevation Drawings E - Rancho del Rey Branch Library Plan of Service Attachment A PUBLIC HEARINGS (Continued) Environmental Project Manager Lundstedt presented the conditional use permit for the proposed Nextel commu~nications facility at the Arco Olympic Training Center. Mayor Horton opened the public heating. There being no members of the public wishing to speak, she then closed the hearing. ACTION: Councilmember Salas offered Resolution No. 2002-202, heading read, text waived: RESOLUTION NO. 2002-202, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING APPROVAL OF CONDITIONAL USE PERMIT PCC-02-39, FOR AN UNMANNED CELLULAR COMMUNICATIONS FACILITY AT THE ARCO OLYMPIC TRAINING CENTER, 2800 OLYMPIC PARKWAY The motion carried 5-0. ACTION ITEMS 12. CONSIDERATION OF SUBMITTAL OF A GRANT APPLICATION FOR LIBRARY BOND ACT FUNDS TO CONSTRUCT THE RANCHO DEL REY LIBRARY The City Council directed staff to prepare an application for a California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the construction of the Rancho del Rey Library. Over the past nine months, City staff and consultants have been working to complete all the necessary pieces of the Library Bond Act application. (Deputy City Manager Palmer) Deputy City Manager Palmer explained the application and discussed the proposed Rancho Del Rey branch library, including the community needs assessment and findings; joint venture agreement; plan of service; bom-to-read family resource center; library building program; environmental impacts; project costs; and time table. Jeff Dawson, representing Carrier Johnson, presented the conceptual plans for the project, including the conceptual design goals; site plan; floor plan; building sections; and elevations. David Johnson stated that the City needs to find a means to build the proposed library even if the bond act application is rejected, since he believed that the project would bring the City together. Councilmember Davis commented that Mr. Palmer is recognized statewide for his expertise and abilities. Councilmember Rindone stated that the City needs to look at its resources as one system with adequate distribution throughout the community. Page 5 ~ Council Minutes II~.q 06/11/02 ACTION ITEMS (Continued) Councilmember Salas commended Mr. Palmer and his staff for their extensive community outreach and needs assessment, which has resulted in conceptual approval of the plan by the community as a whole. ACTION: Councilmember Rindone offered Resolution No. 2002-203, heading read, text waived: RESOLUTION NO. 2002-203, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CITY'S APPLICATION FOR GRANT FUNDS UNDER THE CALIFORNIA READING AND LITERACY IMPROVEMENT AND PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000 FOR CONSTRUCTION OF A NEW LIBRARY AT THE NORTHWEST CORNER OF EAST H STREET AND PASEO RANCHERO (RANCHO DEL REY BRANCH LIBRARY); MAKING ALL NECESSARY CERTIFICATIONS, INCLUDING CERTIFYING THE LIBRARY PROJECT BUDGET AND COMMITTING LOCAL MATCHING FUNDS AND SUPPLEMENTAL FUNDS; APPROVING THE JOINT COOPERATIVE AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT FOR THE JOINT VENTURE PROJECT; AUTHORIZING THE MAYOR TO SIGN SAID AGREEMENT AND EXECUTE ALL NECESSARY DOCUMENTS TO COMPLETE THE GRANT APPLICATION; AND CERTIFYING THE MITIGATED NEGATIVE DECLARATION, IS-02- 40 The motion carded 5-0. At 6:46 p.m., Mayor Horton left the meeting. OTHER BUSINESS 13. CITY MANAGER'S REPORTS City Manager Rowlands announced that the following workshops have b.een scheduled: June 12, 2002: Budget workshop, 4:00 p.m., Council Conference Room June 20, 2002: Council/Port Commission tour of the City, 11:30 a.m. June 26, 2002: Council/Port Commission workshop, 1:30 p.m., at the Port District, to discuss the vision for the bayfront. City Manager Rowlands also informed the Council of a memo on the dais fi.om Transit Coordinator Andy Trujillo in response to questions raised by Mr. Paul Allen at the meeting of June 4, 2002 regarding workforce vacation benefits to be provided by American Transit Corporation (ATC) for the period 2002-2003. 06/11/02 Page 6 - Council Minutes [ ~f~ <~ Attachment B Section 20440, Appendix 1 APPLICATION FORM CALIFORNIA READING AND LITERACY IMPROVEMENT AND PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000 FUNDS Administered by the California State Library, Office of Library Conatruction The applicant local jurisdiction, pursuant to the Education Code, Title 1, Division 1, Part fl, Chapter 12, Articles f-3, sections 19985.200fl and Title 5, Division 2, Chapter 3, sections 20430-2044.4 of the California Code of Regulations, hereby makes application for a state matching grant for the construction or rsmodeling of the public library faclliiy ~encrfbed herein and in all supporting documents: APPLICATION FORM INSTRUCTIONS: ~ Limit comments throughout the entire form to the space provided unless otherwise stated, Single space responses, limiting type size to no smaller than 11 points if using a computer, or t2 pitch (elite) if a typewriter is used. ~ Attachments shall not be accepted unless required by regulation or called for in the application form. ~ Applicants shall submit a completed Application Form and six additional copies of the form. (See section 20440 for complete application submittal requirements) 1. Official Name of Project: > Rancho del Rey Branch Library 2. Type of Applicant Jurisdiction: > (Check one only) City [] County [] City/County [] District [] 3. Grant Applicant Name: > City of Chula Vista Legal name of jurisdiction that will own building (For mbltfputpnae projects, list the legal name of the j~lrisdictfons that will own the public library Im~lion of the mulf~ppq~ose building.) 4. Authorized Official of the Applicant Jurisdiction: > Stephen C. Padilia Mayor, Chekpersna of Board of SupenSsors, Head of Special Diabict, authorized fo sign the application Title: > Mayor E-mail: > spadilla@ci.chula-vista.ca.us Address: > City of Chula Vista 276 Fourth Avenue, Chula Vista, CA 91910 Phone: > (619) 691-5044 5. Project Coordinator: > Paula Brown Name of individual who will have administrative control over the project for the applicant local jurisdiction Title: > Assistant Library Director Phone: > (619) 691-5068 E-mail: > pbrown@chulavista.lib.ca.us Address: > City of Chula Vista, Library Department, 365 F Street, Chula Vista, CA 91910 6. Alternate Project Contact Person: > David J. Palmer If the project coordinator is unavailable, the contact person shall be autho,'fzed to act in ~he napeciiy of the project coordinator. Title: > Deputy City Manager/Library Director Phone: > (619) 691-5170 E-mail: > dpalmer@chulavista.lib.ca.us Address: > City of Chula Vista, Library Department 365 F Street, Chula Vista, CA 91910 7. Head of Planning Department: > Robert Leiter (For the applicant jurisdiction, if applicable. Special Districts are exempt.) Title: > Director of Planning and Building Phone: > (619) 691-5101 E-mail: > bleiter@ci.chula-vista.ca.us Address: > City of Chula Vista, Planning and Building Department 276 Fourth Avenue, Chula Vista, CA 91910 8. Head of Public Works or General Services Department: > Dave Byem ff Applicabla: Head of Publlc Works or General Services Depertment ~r the applicant juifsdictton. Special Districts are exempt. Title: > Director of Public Works Phone: > (619) 397-6055 E-mail: > dbyers@ci.chula-vista.ca.us Address: > City of Chula Vista, Public Works Department 1800 Maxwell Road, Chula Vista, CA 91911 9. Operating Library Jurisdiction: > City of Chula Vista Public Library Legal name of library t~at will opersts the public library 10. Library Director Name: > David J. Palmer Public library director tor the library jutfsdiction that will operate the public library Title: > Deputy City Manager/Library Director E-mail: > dpalmer@chulavista.lib.ca.us Address: > City of Chula Vista, Library Department 365 F Street, Chula Vista, CA 91910 Phone: > (619) 691-5170 11. Alternate Library Contact Person: > Paula Brown If the library director is unavailable, the contact person shall be autho~fzed to act in the capecib/ of the library director. Title: > Assistant Library Director Phone: > (619) 691-5068 E-mail: > pbrown@chulavista.lib.ca.us Address: > City of Chula Vista, Library Department 365 F Street, Chula Vista, CA 91910 12. Library Building Prograre Consultant: > Title: > Consultant E-mail: > simmons415@aoLcom Address: > 133 North Linden Drive Ventura, CA 93004 Beverely Simmons and Associates (If applicable) Phone: > (805) 659-2528 2 13. Technology Planning Consultant: > N/A Title: > E-mail: > Address: > (~applicab~) Phone: > 14, Project Architect: > Gordon Carrier Providing construction budget estimate and/or conceptual plans. Title: > Principal E-mail: > grc@carrierjohnson.com Address: > Carder Johnson, 1301 Third Avenue San Diego, CA 92101 15. Project Manager: > Jack Gdffln (if applicable) Title: > Assistant Director E-mail: > jgdffin@ci-chula-vista.ca.us Address: > City of Chula Vista, Office of Building and Park Construction 1800 Maxwell Road, Chula Vista, CA 91911 16. Construction Manager: > Jack Griffin (if applicable) Title: > Assistant Director E-mail: > jgdffin@ci-chula-vista.ca.us Address: > City of Chula Vista, Office of Building and Park Construction 1800 Maxwell Road, Chula Vista, CA 91911 17. Construction Cost Estimator: > Graham C. Anderson (If applicable) Title: > Principal E-mail: > gcanderson@campbellanderson.com Address: > Campbell-Anderson &Associates, Inc. 5405 Morehouse Drive, Suite 310, San Diego, CA 92121 18. Hazardous Materials Consultant: > N/A Title: > E-mail: > Address: > (Eapplicable) License#> C19621 Phone:> (619)239-2353 Phone: > (619) 397-6088 Phone: > (619) 397-6088 Phone: > (858) 455-8086 Phone: > 19. Project Interior Designer: > Title: E-mail: > Address: > N/A (If applicable) Phone: > 3 I TYPE OF PROJECT New Public Library Building 1. Construction of a New Public Library Building 2. Conversion of an Existing Building into a New Public Library Building 3. Conversion and Expansion of an Existing Building into a New Public Library Gross Scluare Footage · .-Remodeling: > SF '- SF ,,- Expansion: Priority: Gross Total Project SQuare Footaqe > 36,392 SF > OSF > SF (include both new & remodeled square footageJ [] First Priority "Joint Use" [] Co-Location Joint Use [] Joint Venture Joint Use [] Computer Center [] Family Literacy Center [] Homework Center [] Other similar collaborative library services with direct benefit to K-12 students Specify: > Joint after-school educational and recreational programs [] Second PfioritF "All Others" [] Shared Bectronic/Telecommunications [] Subject Specialty Center [] Career Center Existing Public Library Building 4. Remodeling an Existing Public Library Building 5. Remodeling and Expansion of an Existing Public Library Building Gross S~luare Footage ,,- Remodeling: > SF ,,- Expansion: > SF Gross Total Project Scluare Footaqe > 0 SF > SF (Include both new & remodeled square footage.) [] First Priority A public library project in the attendance area of a public school that has inadequate infrastructure to support access to computers and other educational technology. "Inadequate infrastructure" is defined as an incoming telecommunication connection to a school building of equal to or less than 512 thousand bits per second (512K bps). Name of Public School: > N/A [] Second Priorih/"All Others" Field Act Applicability (Joint use projects only) 6. Is the project subject to the Field Act? > Yes [] No [] Multipurpose Buildings (Multipurpose Building Projects Only) is the project a Multipurpose Building? > Yes [] No [] (A murdpuqrose buildth~ is a muth. occupant iscili~y, part of which is s public library and part of which is used for other purpusus.) Types of Multipurpose Building Uses & Square Footage Allocations Space Use SQ FT % I 1. Dedicated to Public Library Use (Including Public Llbre~y /School Library Use, if Joint Use Project) 2. Dedicated to "Other" Uses SQ FT > SF % A. Specify: > SF B, Specify: · SF C. Specify: · SF D. Specify: · SF E. Specify: · SF F, Specify: > SF G. Specify: · SF H. Specify: · 3, Subtotal: Dedicated to "Other" Uses 4. Common Areas~ SF OSF 0% Add Lines 2A SF Idne 3 $F divfded by 5. Subtotal: Total of Common Areas~ > SF Must equal Line 6 SF + Line ? SF 6. Public Library Pro Rata Share of Common Areas~ SQFT 0 SF Line S SF x % th Line f 7. "Other" Uses Pre Rata Share of Common Areas~ 8. TOTAL MULTIPURPOSE BUILDING SQUARE FOOTAGE 9. SF ATTRIBUTABLE TO PUBLIC LIBRARY USE > 0 SF I. ine ,S SF x % in Line 3 > 0 SF Add Lines I SF, 3 SF, & 5 $F · 0 SF Line f SF + Line $ SF ~ "Common Areas" are those areas of a rnuld, occupant building that are shared by all occupants, such as lobbies, vestibules, mechanical moms, rostroores. custodial areas, dolive~y, shipping and receiving areas, loading docks, ldtcheneffus, auditoriums, meeting rooms, conference rooms, and storage areas that ate used by ell paYdse of s rnuldpurpose building. I Population Growth I When providing the 1980, 2000, and 2020 population figures below, the applicant shait count only those residents: (a) Within the official boundaries of the applicant iurisdicfion, and (b) Within the service area of the proposed proiect, but (c/ Exclude all people living within the boundaries of other special district, county, or city public library service areas, for which there is no public library service contract with the applicant. All Projects: 1. Public library project's service area1980 population: > 17,240 2. Source: > U.S. Census Bureau, 1980 Census 3. Population Percentage Change from 1900 to 2000: > 4. Public library project's service area 2000 population: > 47,134 5. Source: > U.S. Census Bureau, 2000 Census 6. Population Percentage Change from 2000 to 2020: > 7. Public library project's service area 2020 population: > 54,439 8. 173 % 15% Source: > City of Chula Vista General Plan; Existing Policies - 2030 Cities/County Forecasting Process Joint Use Projects (Both Co-location & Joint Venture Projects): 9. Project's public school attendance area(s) 1980 studeat population: > 11. Source: > Chula Vista Elementary School District Population Percentage Change from 1980 to 2000: > 1,680 228 % 12, Project's public school attendance area(s) 2000 student population: > 5,505 13. Source: > Chula Vsita Elementary School District 14. Population Percentage Change from 2000 to 2020: > 15. Project's public school attendance area(s) 2020 student population: > 16. 17% 6,430 Source: > Chula Vista Elementary School District, City of Chula Vista General Plan IExisting Library Facility Square Footage Existing Public Library: 1. The current gross square footage of the existing public library(s) being replaced is: Existing School Library: (Co-located Projects Only) 2. The current gross square footage of the existing school library(s) being replaced is: > 0 SF If no existing public library faclli~, miter "0." > 0 SF If no existing school library faclli~, enter "0." ILibrary Facilities Master Plan Describe the relationship of the proposed project to other existing or planned library facilities for the jurisdiction. The Rancho del Rey Library has been planned for since 1987. The City's 1987 and 1998 Library Master Plans set standards for library space in the City. The 1987 Master Plan, entitled Chula Vista Public Library Master Plan; Facilities Planning to the Year 2010, was developed by a joint venture of HBW Associates from Dallas and Michael Feerer & Associates from San Diego. The report, which was commissioned following the Montgomery annexation, the largest annexation in the State at that time, was designed to assess the City's future library facilities needs and outline the most appropdata, cost effective long-term strategy for public libraries in Chula Vista. The 1987 plan recommended that the City build three new regional libraries in the Uontgomery/Otay (southwest), Sweetwater/Bonita (the Rancho del Rey area), and the Eastern Terdtories (southeast Section), joining the existing library in the Central/Bayfront or northwest section of the City. During the 1990's, the City began to implement the 1987 Library Master Plan. In 1993, the EastLake Library opened on the campus of the EastLake High School. This branch was designed to serve as an interim service point until a permanent library could be built in the Eastern Territories. In 1995, the 37,000 Gross Square Foot (GSF) South Chula Vista Library opened to serve the Montgomery/Otay area. By eady 1997 the City's Growth Management Overnight Commission was asking the Library, Fire and Police Departments to develop new master plans in light of expected growth of the City. Therefore, in December 1997, the Library hired the firm of David M. Gdflith and Associates to revise the 1987 plan. The 1998 Library Facilities Master Plan, which was accepted by Council in December 1998, is the Library's current blue pdnt for futura development. This plan calls for the construction of a 30,000 GSF branch library at the City owned Rancho del Rey site in the Sweetwater/Bonita area as soon as possible. A second 30,000 GSF library is also recommended in the Eastem Urban Center in the Otay Ranch area of the Eastern Territories in approximately 2015. The Ci~s population at buildout in 2030 is expected to be approximately 275,000. The four regional libraries are geographically situated in each of the four quadrants of the City such that each will serve between 50,000-75,000 residents. The proposed Rancho del Rey Library will be one of these four. IAge of the Existing Library Facility See Definition of "Existing Public Library," section 20430. All Proiects 1. When was the existing public library building(s) that will be replaced or improved built? N/A Year If no existing public library facility, enter "N / A " If proposed project will replace mom than one building, list the oldest of the buildings. Co-Located Joint Use Projects Only In addition to the information listed above: 2. When was the existing school library building(s) that will be replaced or improved built? > N/A Year ff no existing school library facilth/, enter "N / A . If proposed project will replace more than one building, list the oldest of the buildings. ICondition of the Existing Library Facility See Definition of "Existing Public Library,' section 20430. All Projects 3. When was the most recent structural1 renovation or expansion of the existing public library building(s) that is to be replaced or improved by the proposed project? Co-Located Projects Only In addition to the information listed above: 4. When was the most recent structural1 renovation or expansion of the existing school library building(s) that is to be replaced or improved by the proposed project? > N/A Year ff no existing public library facitiiy, enter "N / A " If proposed project will replace more than one building, list the oldest of the buildings. · N/A Year ff no existing school library facilib/, enter "N / A If proposed project will replace more than one building, list the oldest of the buildings. Pertaining to the load bearing elements of the building Ownership and Availability Site 1. 2. is the library site currently owned by the applicant? Will the library site be owned by the applicant? 3. Will the library site be leased by the applicant? 4. If the library site will be leased, provide the name of the owner: > 5. Was the site acquired with funds from the "Class Size Reduction Kindergarten-University Public Education Facilities Bond Act of 1998'? [See Education Code section 19995 (c)] 6. Is the site currently dedicated to the operation of a public library? Building (ForConvaraiueProjec Oldy) 7. Is the building to be converted currently owned by the applicant? 8. Will the building be owned by the applicant? Yes [] No [] Yes [] No [] Yes [] No [] Yes [] No [] Yes [] No [] Yes [] No [] Yes [] No [] Title Considerations Site 9. Are there any exceptions to marketable record title? Building orCue.ralanProj, 10. Are there any exceptions to marketable record title? Yes [] No [] Yes[] NoJ-'J Appraisal (No appraisal is required if the value of the land or building will not be claimed as an eligible project cost or a local matching fund credit.) Site 11. What is the appraised value of the library site? > $ 2,070,000 (or library portion of site, if multipurpose project) 12. Does the appraiser have a State Certified General Real Estate Appraiser's License? Yes [] No [] Building (ForConvaralanProjectsOniy) 13. What is the appraised value of the building? > $ (or library portion of building, if multipurpose proJect) 14. Does the appraiser have a State Certified General Real Estate Appraisers License? Yes [] No [] Site Use Potential Accessibility Describe the accessibility of the proposed site for the residents in the library service area: Equal Access Discuss the site's accessibility to all parts of the library service area and its location in relationship to the geographic center of the library service area. Discuss any natural and artificial bardera that may impede access to the site, The site is accessible by vehicle, bicycle or on foot from all directions. The site is approximately one mile from the geographic center of the 15 square mile library service area, the intersection of East "H" Street and Otay Lakes Road. The site is adjacent to a major east-west corridor East "H" Street, and is approximately two miles away from two freeways (one is future). East "H" Street and Paseo Ranchero provide direct access to most of the library service area. The most northern part of the service area can be accessed via East "H" Street to Otay Lakes Road to Bonita Road. The site is located in a residential area, near single family and multi-family homes, is next to a YMCA facility and future teen center, and is within walking distance of two elementary schools and one middle school. Two potential artificial barriers and one natural barrier exist. The site is next to a fire station and fire training facility. Pedestrian access is not available across the fire department property; however, there is a sidewalk in front of the station. There is no access from behind the fire station to the library site, as San Diego Gas and Electric has an easement nearby and must approve any access, such as a pedestrian trail, through its easement. The City may seek such approval in the future. The natural barrier is that the west end of the site is adjacent to Coastal Sage Scrub, which must be protected, given the presence of endangered gnatcatchers and the fact that the habitat area is under the City's potential Multiple Species Conservation Plan area. However, as indicated above and on page 11, access is readily available, just not from each and every point along the site's boundary. Public Transit Access * Number of public transit stops located within ¼ mile of site: > 2 If public transit is available in the library service area, describe the various public transit access opportunities for the site. If no public transit is available in the library service area, enter "No Public Transit Service." Chula Vista Transit (cv'r) operates the public bus system for the City, and has two bus reutes that serve the library site on East "H" Street. These two reutes represent 21% of the total CVT ddership or passenger count. There are two bus stops within ¼ mile of the site, one of which is next to the site. CVT receives funding from Metropolitan Transit District Board (MTDB), a regional agency that plans and provides regional system bus, light rail (trolley), and rail services. MTDB recently adopted a 20-year strategic plan, Transit Works, with the goal of"making transit a desirable option that people will make it their first choice for many of their daily travel needs. Such a vision is predicated on establishing local policies that focus on pedestrian-friendly community design principles and transit pdodty measures." To this end, MTDB has developed five candidate Transit First showcase projects. The only proposed showcase project outside of the City of San Diego is in Chula Vista along the H Street corddor between the H Street Trolley Station near I-5 in western Chula Vista and Otay Ranch via Southwestern College in eastern Chula Vista. One of eight proposed stations is at East "H" Street and Paseo Ranchero, due to the proximity to the proposed library and existing and future YMCA facilities. Pedestrian & Bicycle Access Describe other access opportunities such as pedestrian walkways and bicycle paths, Discuss plans for amount and location of bicycle parking, including local ordinance requirements. There are sidewalks located on both sides of Pasee Ranchero and East ~H" Street, providing access from the Rancho del Rey community, from the nearby bus stops, and from the adjacent YMCA facility and teen center to the library. There is a future possibility of developing a bail from the north side of the fire station, adjacent to the teen center, around the back of the fire facility to the library site. This action requires San Diego Gas and Electric's approval to access its nearby easement and grading work. There are City designated bicycle lanes on both East "H" Street and Paseo Ranchem and around Rancho del Rey Parkway, which connects to Paseo Ranchem, and is the main read connecting the north Rancho del Rey community. These are designated bike lanes per the City's 1996 Bikeway Master Plan. East "H' Street is also a designated regional bikeway. There are twelve bicycle spaces planned at both entrances to the library, for a total of 24. There are no local ordinance requirements regarding the provision of bicycle parking for public facilities. Automobile Access Descdbe the site's accessibility by automobile for residents of the library service area. Take into consideration traffic, traffic systems, and availability of curb cuts. The site, tocatad at the northwest comer of East "H" Street and Paseo Ranchero, is well situated for vehicular access from all directions by residents of the library service area. The site is approximately two miles east of Interstate 1-805 and two miles west of future State Route 125. East "H" Street is a six-lane prime arterial, a major east-wast corridor that runs from Interstate I-5 to the eastem boundary of the City, and runs through the middle of the service area. Paseo Ranchere, which is a 4-lane north- south collector, runs from Rancho del Rey Parkway, which connects the northern Rancho del Rey community, south to Telegraph Canyon Road. Paseo Ranchem then changes name to Heritage Road and will eventually connect to Main Street at the City's southern boundary. The average daily traffic count (ADT) on East "H" Street is over 50,000. There is an 8-phase fully actuated traffic signal with protective/permissive phasing for north and south directions at the intersection of East "H" Street and Paseo Ranchero. Residents will be able to access the site from a driveway to be constructed off Paseo Ranchem and from a right turn in/out only ddveway to be constructed off East "H" Street. Curb cuts for pedestrian access ramps will need to be constructed for these driveways. Traffic Engineering has reviewed and approved the project's conceptual ddveway plans. A deceleration lane is planned on East "H" Street to provide a separate lane for entedng the driveway from this busy street. Proximitv to Major Thorou~lhfares List the major arterial reutes in the library service area with the most recent traffic counts (number of vehicles per day): Number of Blocks Traffic Count Street Name from Site Count Date 1. > East H Street (Terra Nova-Del Rey Bird.) 2 2. > Otay Lakes Road (East H street-Gotham) 3 3. > Bonita Road (Allen SchooI-Otay Lakes) 6 4. > Telegraph Canyon Road (Paseo Ladera- 3 53,265 1/22-1/25-02 27,977 04/16/02 36,593 3/12/02 50,461 4/2-4/5/02 Library Automobile Parking 1. Number of library parking spaces available off street, on library site: ............................. > 175 spaces 2. Number of library parking spaces available off street, off library site: ............................. > 0 spaces (within 500 feet of front door) 3. Number of parking spaces available on street: ............................................................... > 10 spaces (within 500 feet of front door) 4. Total Number of Spaces Available for Library Parking: .................................................. > 185 spaces Zoning Requirements 5. Number of on-site library parking spaces required by local zoning: ................................ > 0 spaces 6. Was a zoning vadance or waiver obtained for the project for parking? .......................... > YesE~ No[~ 7. If so, by how many spaces were the parking requirements reduced? ............................ > spaces 8. Provide number of square feet per parking space as required by local zoning: ............. > 0 SF 9. If no local zoning requirement, provide the average number of square feet per parking space used in the project calculations: ........................................................ > 369 SF Automobile Parking to Building Square Footage Ratio 10. Calculate: #of Square Feet of Parking # of Square Feet of Building 64,517 SF 36,392 SF > 1.77 SF of Parking/1SF of Building Library Bicycle Parking 11. Total Number of Spaces Available for on-site Library Bicycle Parking ......................... > 24 spaces Parking Rationale Descdbe the rationale behind the amount of parking that will be available for the project, including: (1) the location of the automobile parking (on-site or off-site), both within and beyond 500 feet of the library entrance; (2) local zoning requirements; (3) the availability of public transportation; (4) bicycle parking and bicycle and pedestrian paths; and (5) any other considerations impacting automobile parking requirements i,ncluding, but not limited to, parking partnerships with shared use agreements. The on-site parking provides 175 spaces, of which six are handicapped (one is van accessible). All of the 175 parking spaces are within 500 feet of the north front entrance. (The south entrance fronts on East 'H" Street and Paseo Ranchero to provide entry for public transit dders and pedesthans.) There are no local zoning requirements for automobiles or bicycle parking for public buildings, including libraries, in the City's Municipal Code. We therefore used the parking at the South Chula Vista Library as a guide for determining parking at the Rancho del Rey Library, which was acceptable to the Planning and Building Department and Public Works Department- Engineering Division. The South Chula Vista Library is 37,000 square feet and has 187 parking spaces. Based on these numbers, the parking for the proposed 36,392 square foot library would be 184 spaces. We have provided 9 fewer spaces for a variety of reasons. The proposed library site is in the middle of the Rancho del Rey community, within walking distance of many single-family residences and across the street from a large apartment complex. We believe many residents will walk to the library, given its central location and proximity to the YMCA facility. We have provided 24 bicycle parking spaces, 12 at the north entrance and 12 at the south entrance, given that there are bicycle lanes on both Paseo Ranchem and East "H" Street. There ara two public transit stops on East ~H" Street that ara within one-quarter mile of the library. The current two reutes serving this area account for over 20% of the entire City ddership, so we do expect a number of library patrons to visit via public transit, in addition, there is a possibility of a major transit project for the "H" Street corridor, with a major transit stop adjacent to the library. This project would be done by the County's regional transit authority, and if funded, could significantly increase public transit ridership. There are an estimated 10 parking spots on Paseo Megda, the street opposite the Paseo Ranchero ddveway entrance, which are within 500 feet of the north front entrance. Finally, we could consider a parking partnership with the YMCA, to allow overflow parking for library patrons at its facilities. However, we do not feel we will need that space unless we have occasional special events at the library that call for one-time additional parking spaces. We would then consult with the YMCA staff on an as-needed basis. There is no provision for parking expansion due to the requirements in the Mitigated Negative Declaration regarding protection of the Coastal Sage Scrub areas on the west side. Please note that the proposed library surface parking lot shown on Page 16 is 70,864 sq. ft., which includes the driveways and book drop off area. The actual area with parking spaces only is 64,517 sq. ft., as shown on Page 12. Visibility Describe how visible and prominent the public library building will be within the library service area. The Library site is located along a major east-west corridor, East "H" Street, which has an average daily traffic count exceeding 50,000 vehicles. The intersecting street, Paseo Ranchero, is one of the main entrances to the Rancho del Rey development and has a YMCA facility, future YMCA teen center, a fire station and Methodist Church on it, and provides the main access to two elementary schools and one middle school, which are within a one-mile radius of the site. The site is approximately one mile from Southwestern College, a community college; is one-half mile from the start of the Rancho del Rey Business Center that contains, among other things, K-Mart, Costco, Home Depot, a movie theatre, professional offices, and a continuing education pdvate university; and is approximately two miles from Terra Nova Shopping Center that contains a grocery store, drug store, two sporting goods stores, clothing stores, and other retail and eating establishments. The library is proposed to be situated on the comer of the site, at East "H" Street and Paseo Ranchero, and have a second story that is visible and very prominent from this comer. Community Context & Planning Describe the proximity of the proposed site to other facilities and areas of the community, and how that proximity enhances the use of the library by the residents in the library service area. Describe the appropriateness of the proposed site including whether the proposed library project will contribute to the establishment, redeve}opment, or revitalization of a community or downtown core, business district, or neighborhood. Describe how the proposed library is connected to other uses, including public use facilities, by a full range of transportation and pedestrian options. The proposed site is in the heart of the Rancho del Rey community of 47,134 people. It is on the same street as a City tire station, YMCA facility and future YMCA teen center, and a chumh, and is within a one-mile radius of two elementary schools, a middle school and community park. It is within ~ mile to 1 ~ miles of a very busy major retail/business center that has a Home Depot, K-Mart and Costco. As indicated in other sections of this application, the site is ideally situated on major roads, major transit routes, with walkways and bicycle lanes in all directions. The library site is connected by sidewalks, roads, and transit systems to two other major retail centers nearby on East "H" Street, and a community college within 1 to ~1% miles on East "H" Street. There is a San Diego trolley stop further west on "H" Street near Interstate 5, about six miles from the library site, accessible via public transit or automobile that runs from the U.S./Mexico border north to the City of San Diego. We anti.cipate heavy usage of the library by the public for these reasons. We expect the library to contribute to the forming of a true ' neighborhood. Dudng the vadous town hall and focus groups meetings, the most common refrain was the desire for the new branch library to serve as a community center and focal point for the community. Except for parks (with no community centers) and fire stations, there is no civic presence in the sprawling suburban stretch of northeast Chula Vista. Site Selection Process Describe the site selection process including community and planning department involvement, consultant assistance, as well as any other pertinent activities associated with determining the best site for the library project. The library site was actually selected in 1987, with the City Council's adoption of the Rancho del Rey Sectional Planning Area (SPA) I Plan for an 808-acre portion of the Rancho del Rey planned development at a public hearing in December 1987. The land, within a parcel to be dedicated by the developer to the City for parkland and other public facilities, was set aside for both a library and fire station, if the City later determined a need to build the library at this location. This area was set aside based on the findings and recommendations in the 1987 Library Master Plan, which called for the building ora sub-regional library in the Sweetwater/Bonita area. The 1987 Library Master Plan included five recommended factors to consider when selecting a library site - proximity to users at other activity places, visibility, accessibility, neighborhood compatibility/image, and site size/suitability. The library site at East "H" Street and Paseo Ranchero all positively tit these criteria. The SPA I Plan was prepared by a ptanning consultant for the developer, working closely with the City's Planning Department. There was no existing community as this was the first of three SPAs for the El Rancho del Ray Specific Plan. The 1998 Library Master Plan reaffirmed the specific site in Rancho del Rey as the recommended location for the next branch library. The public attending the Needs Assessment community meetings also affirmed their support for this location. Site Selection Summary Describe why the preposed site was selected and why it is the best available location for the preposed public librery project. If there are prebtems with the proposed site, are there mitigating cireumstances that lessen the negative impact of the preblem or preblems? Describe any preposed design solutions that may moderete the site's drawbacks. The site for the Rancho del Rey librery is exceptional, it was selected because of its location in the middle of the Rancho del Rey community. The master-planned community of Rancho del Rey was well planned and well laid out to previde services for its residents. The library site is adjacent to housing, to community cultural and recreation centers as well as to large open space and habitat resoume areas. It is located on a major city thoreughfam - East "H" Street, so it is highly visible and accessible by motedsts, pedestrians, and bicyclists. A major bus stop, along this pdmary transportation corridor threugh the city, is directly adjacent to the preposed facility. The other bus stop within a quarter-mile of the site is across East "H" Street. It is configured well to take advantage of natural daylighting opportunities and has sufficient size to accommodate the needed building square footage, its complete parking requirement in addition to large courtyard, landscape and terrace amenities. It is within walking distance of two elementary schools and a middle school and is close to Southwestern Community College. It is near three major retail centers. It is located in a community that has no public library service. It is located in a service area with nine elementary schools and over ten day care centers and private schools, two middle schools, one high school and one community college. The minor drewbacks to this site, if any, for the new library would be its adjacency to the tire training area west of the fire station and the elevation of the site slightly below the intersection of East H Street and Paseo Ranchero. To mitigate the impact of water over-spray from fire fighter training activities, the landscape design has provided an 8' masonry wall and extensive evergreen screen tree plantings. These measures should minimize both the visual proximity of the training tower, and reduce the amount of water mist carded across the site by the prevailing westerly breezes. Mitigation of the grade separation between the intersection and the main floor of the library has been accomplished by creating two floore within the library facility. The lower floor will contain the public library. This floor will be approximately 8-10 feet below the current elevation of the intersection. The second floor of the facility, including a second entry, will be slightly higher than the elevation of the intersection and hold the community meeting reoms and librery administration spaces. Another minor drawback is its proximity to a habitat resoume area, which we also consider as a positive. Its proximity prevents us from expanding the parking lot due to the need to remain out of this environmentally sensitive area. However, we do not intend to expand this branch library, therefore, pa~king expansion is not really an issue. Please not that the appreised value and metes and bounds description of the library site is 4.75 acres, or 206,910 sq. ft. as shown on Page 16. However, based on the mitigated Negative Declaration, we will not be able to develop .49 acres or 21,381 sq. ft. due to the presence of California Gnatcatcher in the Coastal Sage Scrub. Therefore, we are only counting the developable area of 185,529 sq. ft., or 4.26 acres, valued at $10/sq. ft., in the appreised value of land in the Library Preject Budget. Page 9 under Appraisal lists the full appraised value of $2,070,000 for the entire 4.75 acres. Page 25, line 5, shows the value of the developable acreage of 4.26 acres at $1,855,300, Please also note that the title report is for the entire 14+ acre parcel that is owned by the City, of which, 4.26 developable acres is proposed for the library site. Site Description Size The total square footage of the library site should equal the square footage shown in 1 through 8 below: All Projects (Except Multipurpose Buildings) 1. Proposed Library Building Footprint~ 2. Proposed Library Surface Parking Lot 3. Proposed Library Parking Structure Footprint~ 4. Future Library Building Expansion Footprint1 5. Future Library Parking Expansion 6. Required Local Zoning Set-Backs 7. Desired Aesthetic Set-Backs & Amenities 8. Miscellaneous & Unusable Space 9. Total Square Footage of Library Project Site 10. Proposed Under-Building Parking Square Foota.qe 31,799 SF 70,864 SF 0 SF 2,000 SF 0 SF 33,003 SF 35,374 SF 34,039 SF 206,910 SF 0 SF ~ "Footptfnt' means the square footage of surtace area of the site that a building or structure occupies. For example, a single story 10,0~0 square foot building would have a I 0,000 square foot footprin~ but a two.story 10,000 square foot building with 5,000 square the t on each level would ha ye a footprint of 5,~ square lee~ Multipurpose Buildin.q Proiects Only 2. 3. 4. 5. 6. 7. 8. 9. 10. Proposed Under-Building Parking Proposed Building Proposed Surface Parking Lot Proposed Parking Structure Future Building Expansion Future Parking Expansion Required Local Zoning Set-Backs Desired Aesthetic Set-Backs & Amenities Miscellaneous & Unusable Space Total Square Footage of Multipurpose Project Site A B C D Library2 Library Portion Other~ Other3 Dedicated of Common Common Dedicated SQ FT SQ FT .SQ FT SQ FT Library means that porffon of the project that provides space for the delivery and support of public library direct services, including joint use school library services (co-location or joint venture). "Other" uses means any other space that does not provide for the delivery and support of public library direct oet~4ces. Zoning Classification 1. What is the curTent zoning classification of the site? > PCPK (Park/Open Space) Public buildings are allowed 2. Will the site have to be rezoned to build the project? Variance or Waiver 3. Will a zoning vadance or waiver be needed to build the project? 4. If so, list the date the variance or waiver has been or will be granted? Yesr-I No[~;~ (Date) Yes [] No [] Permits & Fees Permit & Fees Identification Provide a list of any site permits or fees that have been or will need to be obtained: Permit or Fee 5. >Traffic Signal Fee 6. >Building Permit/Plan Check Fee 7. >Sewer Capacity Fee 8. >Grading Permit Fee Co~ofPermJtorFee $40,250 $ 20,000 $ 22,000 $4,000 Dato Ob~inedor wiltbe Ob~ined 08~1~4 08~1~4 08~1~4 08~1/04 Drainage 9. Is the site in the 100-Year Flood Plain? 10. Do any watemoumes that require control drain onto the site? 11. Do any watercourses that require control drain off the site? 12. Is the storm sewer system currently adequate to prevent localized flooding of the site? Yes [] No [] Yes [] No [] Yes[] Yes [] No [] Descdbe any necessary mitigation measures regarding drainage. The City is a Municipal Copermittee under the Califomia Regional Water Quality Control Board, San Diego Region Order No. 2001-01, NPDES No. CAS0108758 {"Order"), which regulates the treatment of urban runoff prior to its discharge into municipal storm drainage systems. Appropriate erosion control measures are required during construction to prevent discharge of sediment into the storm drain system. The parking lost is a Priority Development under the Order and is required to comply with Standard Urban Storm Water Mitigation Plans and Numeric Sizing Criteria through implementation of permanent, post- construction best management practices (BMPs), consisting of non-structural (maintenance practices) and/or structural (e.g. bioflltration, mechanical filtration devices). Complying with the Order through appropriate BMPs mitigates a potentially significant impact to below a level of significance. California Environmental Quality Act (CEQA) CEQA Litigation Are there any unresolved legal actions pending against the project regarding CEQA compliance? Is so, provide the case name, court number, and a bdef explanation. No, not applicable. Energy Conservation Descdbe what measures (including building design, solar orientation, materials, mechanical systems, natural ambient lighting, etc.) are planned to reduce energy consumption and operating costs for the library. The City Council has approved a statement that all future City buildings (including the library) develop a plan to exceed Title 24 by 20%. The library is designed to minimize lighting and HVAC energy consumption by carefully controlling the amount of heat and sunlight allowed into the building, through thoughtful architectural siting and building orientation, creative glazing design and consideration for the location of library uses. When additional lighting and cooling are required to operate the building, highly efficient mechanical systems have been provided to supplement natural systems. The library's long axis runs generally east to west, thereby, greatly reducing the amount of iow angle, heat-producing sunlight that can impact west facing spaces in the Library. Clerestory windows, with deep overhangs and recesses, are placed high within the main library space to maximize indirect natural daylight levels and to reduce the amount of harmful direct sunlight allowed in. Building functions that do not require large quantities of natural daylight have been placed on the south and west sides to buffer the public spaces from the sun's direct impact. Insulated, Iow-E glass is used to reduce the amount of heat transmitted through the windows. The placement of solid materials, such as stucco and stone tile, around the building reduces the amount of glass on the south and west sides, thereby Iowedng heat gain. The HVAC four-pipe system, with roof mounted air handlers and a remote central plant, will be zoned to provide appropriate cooling for the library spaces. Variable frequency drives for air handlers and central digital control of the mechanical systems will improve the building's operating efficiency. High efficiency indirect artificial lighting will be used in combination with natural daylighting in the major public spaces. Task lighting will be integrated at reader stations to supplement ambient light levels while reducing overall energy consumption. Photovoltaic panels installed on the roof will be included to reduce the peak electrical demand. Drought tolerant plant material will be used in a majodty of the outdoor area to conserve water. Historic Buildings Historic Status 1. Was the existing building, if it is being renovated or expanded as part of the project, or any buildings on adjacent properties, built longer than 50 years ago? Yes [] No [] Is the existing library building project, or any buildings on adjacent properties: 2. On the National Register of Histodc Places? Yes [] No [] 3. A National Historic Landmark? Yes [] No [] 4. A National Monument? Yes [] No [] 5. On County or Municipal Historic Designation list? Yes [] No [] 6. On the Califomia Register of Historical Resources list? Yes [] No [] 7. A California Historical Landmark? Yes [] No [] 8. A State Point of Historical interest? Yes [] No [] Federal Compliance 9. Wilt this project utilize Federal funds or require a permit or license from a Federal Agency? Yes [] No [] 10. If yes, has the review process required by section 106 of the National Histodc Yes [] No [] Preservation Act been completed? If not, please explain. State Historic Preservation Office (SHPO) 1. Has the State Historic Preservation Office been contacted regarding the project? Yes [] No [] if yes, summarize any comments received from SHPO. Does the project meet the Secretary of the Interior's Standards for the Treatment of Histodc Proped[ies? Please explain. Local Historic Preservation Ordinance 2. Is there a local historic preservation ordinance that applies to the proposed project site or any adjacent properties? Yes [] No [] If yes, bdefly specify any applicable requirements or restrictions, such as height limits, etc. Further, describe any ways that the proposed project's conceptual design plans are not substantially in compliance with the local historic preservation ordinance. Geotechnical Report Identify and summarize any special geologic conditions, including, but not limited to, compressible and expansive soils, tunnels and mine shafts, unstable slopes, active seismic zones, excessive ground water and areas prone to liquefaction. Indicate if these conditions will prevent the use or significantly increase the cost of developing the site for a public library building. A geotechnical investigation was performed for the proposed library site located at the northwest comer of the East "H" Street and Paseo Ranchero. The site was originally mass graded in the late 1980's as part of the overall Rancho del Rey development and is adjacent to a City of Chula Vista Fire Station. A summary of the significantly reported geologic conditions for the site follows. No mineshafls or tunnels were discovered at the proposed library site. Also, no compressible soils, expansive soils, unstable slopes, or groundwater were encountered that will affect the proposed development. The potentially active La Nacion fault was regionally mapped to parallel the eastem boundar,/of the proposed library site along Paseo Ranchero. Subsequent to a fault hazard investigation through the proposed site, it was concluded that no faults or significant fault-related features were observed within the proposed library site. The geotechnical investigation performed concluded that the proposed library site has a Iow potential for geologic hazards such as liquefaction, seismic settlement, subsidence, flooding, tsunamis, inundation and seiches. The original mass grading of the library site resulted in fill soils varying in thickness from 2 to 19 feet below the existing grade. Additionally, up to 20 feet of alluvial soil appears to have been left in place beneath the fill during the initial mass grading. Due to this, the proposed library building will need to be supported on end-bearing, drilled caissons embedded in formational materials, which will not significantly increase the cost of developing the site for a public library. Based on the conclusions of the geotechnical investigation, the proposed library site is suitable for the planned development. Structure(s) to be Demolished Demolition Describe any necessary demolition of structures and the associated costs involved with the site. (If no demolition, indicate by "N/A") Demolition Cost Estimate 1. >N/A $0 2.> $ 3.> 4.> $ 5.> $ 6.> $ Total Demolition: > $ Utilities Descdbe availability of utilities and associated costs if any utilities are not currently located within 1 O0 feet of a prope~ line of the site. Utility Availability Cost to brinq Service to Site (Ineliqible) I. Electricity Yes [] No [] > $ 2. Fiber Optic Cable Yes [] No [] > $ 0 3. Telephone Yes [] No [] > $ 4. Gas Yes[] No[] > $ 5. Cable TV Yes[] No[] > $ 6. Storm Sewer Yes [] No [] > $ 7. Sanitary Sewer Yes [] No [] > $ 8. Water Yes[] No[] > $ Site Development (All off-site costs beyond 100 foot utiliiy tie-ins a~e Iocal ineligible expenses, but shall be identitied and included in Ihe budget estimate under ineligible site development coste.) Site Development Costs Eli,qible Ineli,clible 1. Utilities ........................................................................................ > $ 252,200 $ 60,100 2. Cut, Fill & Rough Grading ........................................................... > $165,000 $ 39,400 3. Special Foundation Support (pilings, etc.) .................................. > $ 45,900 $11,000 4. Paving, curbs, gutters & sidewalks ............................................ > $ 465,400 $111,000 5. Retaining Walls .......................................................................... > $ 43,700 $10,200 6. Landscaping .............................................................................. > $ 283,400 $ 67,300 7. Signage ..................................................................................... > $11,800 $ 3,000 8. Lighting ...................................................................................... > $ 88,200 $ 21,100 9. Removal of underground tanks .................................................. > $ 0 $ 0 10. Removal of toxic materials ....................................................... > $ 0 $ 0 11. Rock removal ........................................................................... > $ 0 $ 0 12. Traffic signals ............................................................................ > $ 0 $ 0 Other (Specify): 13. Off-site improvements $106,100 14. Special/Otherimpmvements $177,700 15. TOTAL SITE DEVELOPMENT COSTS: ................................. > > $ 445,300 > $ 747,300 $2,548,200 $ 606,900 INormal Public Construction Costs in the Applicant's Area For projects with new construction only (i.e., const~cting e totally new library building or the expansion to an exin~fng building) Construction Cost Index Approach: To justi~J the eligible projected construction cost estimate for new construction, applicants shell complete the following: 1) Janua~J 2002 current costs per square toot: A. Fornewtaciiities: $202 ISF B. For square footage added to an existing building, i.e. "expansions": $238/SF Multiply the eppropSa te County Locatily A djustmen t Factor (2B) by the sppropt/s ta new cos t per square foot figure (2C) (See section 20436 (c) (1) to obtain the "Locally Adjusted ConstmcUon Cost per Square Foot" figure (2D): County Locality Appropriate = 2) A. County: > San Diego B. Adjustment Factor: > 0.97 X C. New Coat/SF: > $20.~2/SF D. > $196 ISF Name of Project Conn~y (Select: lA or 1 B) 3) A. Locally Adjusted Construction Cost Per Square Foot: > $196 1SF (Re-enter Line 2D) The "Locally Adjusted Construction Cost per Square Foot" (3A) figure may be increased by 1/5 pement per month for each month from January 1, 2002, through to the estimated mid-point of construction of the project. Multiply the number of months (4A) timex .002 (1/5%) to get an inflation factor (4B). Multiply the inflation factor (4B) times the "Locally Adjusted Construction Cost per Square Foot" figure (4C) to get an "Additional Cost per Square Foot" figure (4D): Number inflation 4) A. of Months:> 3._~6 X .002 = B. Factor :> .072 015%) Locally Adjusted Additional $/SF X C. Constrection $/SF:>,_$1961SF = D, >$141SF [Ke-erlter 3A) Add the resulting 'Additional Cost per Square Foot figure (SA) to the Locally Adjusted Construction Cost per Square Foot figure (SB) to get the "Eligible Projected Constmctioo Cost per Square Foot" tigure (5C): Additional Locally Adjusted 5) A. CostiSF:>$14 ISF + B. Construction$/SF: >$196 ISF = (Re-enter 4D) (Re-enter 4C) Eligible Projected C. Construction $/SF: > $ 210 ISF The total "Eligible Projected Construction Cost" for the project is calculated by multiplying the "Eligible Projected Construction Cost per Square Foot" figure (5C) by the total number of square feet of new construction: 6) The Eligible Projected Construction $/SF: Multiplied By 7) The Square Footage of New Construction: Equals 8) The Eligible Projected Construction Cost: > $ 210/SF (Re-enter 5C) > 36,392 SE > $7,642,300 If the projected construction cost estimated by the project architect is lower than the figure in Line 8, the applicant shall use the lower figure as the normal public construction cost in the applicant's area. A 10% project contingency amount is allowed and is calculated by multiplying the total Eligible Projected Construction Cost by 10%: 9) EliglbleContingency:(fO%ofLineS) > $ 764,200 Comparable Public Construction Approach: As an alternate to the Constmcbon Cost Index approach to esfimal~ng normal construciJon costs in the applicant's area, the applicant may employ a local public cons~ucfion co~t comparison approach to calculate the Eligible PnY. lected Construction Cost figure. [See sec~oo 20436 (c)(3)] List a minimum of three comparable pubils consthJctJon projects that have been bid within the applicon[~s County within three years of the Board's deadline for applicalion Comparable public conslructJon projects are public libraries, community colffiges, post offices, museums, cou~ouses, city hails, auditoriums, convention centers, civic centers, senior citizen centers, public schools, and recreation centers. The costs listed shall be for oonstmction of the building only and exclusive of any site acquisition, demolition, development, utilities, or landscaping; surlece and under buiMins parking; works of art; shelving; furniture; built.in sendce desks, counters, workstations, or other casework; roovable equipment; or architectural and engineering fees. Construction Date Bid Cost/SF Pr~j.ect A,> B,> C.> D.> E. TOTAL 1fl) $ iSF $ ISF $ iSF $ ISF > $ -- ISF Locally Determined Comparable Cost Per Square Foot ($/SF): ~ > $ __ ISF Divided by > = ~ > $ ISF Re-enter Line E # of Pmjecte Locally Deteoninnd Comparable Cost per Square Foot The "Locally Determined Comparable Cost per Square Foot" (10) figure may be increased by 1/5 percent per month for each month from January 1, 2002, through to the estimated mid-point of construction of the project. Multiply the number of months (ffA) times .002 (1/5%) to get an inflation factor (1lB). Multiply the inflation factor (11B) times the "Locally Determined Comparable Cost per Square Foot" figure (1 lC) to get the "Additional Cost per Square Foot" figure (f 1D): Number Inflation Locally Determined 11) A. of Months:>__ X .002 = B. Factor:> __ X C. Comparable$/SF:> $ ISF = D. >$__/SF (115%) ~ter 10) Adding the resulting "Additional Cost per Square Foot" figure (12A) to the 'locally Determined Construction Coat per Square Foot" figure (12~; ) gives the "Eligible Projected Construction Cost per Square Foot" figure (12C): Additional Locally Determined Eligible Projected 12) A. CostiSF: > $ ISF -I. B. Construction $/SF: > L ISF = C, Construction $1SF: > $__ ISF (Re.enter 11D) (Re-enter tlC) The "Eligible Projected Construction Cost" is calculated by multiplying the "Eligible Projected Construction Cost per Square Foot" figure (12C) times the square footage of new construction: 13) The Eligible Projected Construction $/SF: > $ __ ISF Multiplied By (Re-enter 12C) 14) The Square Footage of New Construction: > SF Equals 15) The Eligible Projected Construction Cost: > $ If the projected construction cost estimated by the project architect is lower than the figure in Line 15, the applicant shall use the lower figure as the normar public construction cost in the applicant's area. A 10% project contingency amount is allowed and is calculated by multiplying the total Eligible Projected Construction Cost by 10%: 16) Eligible Contingency: (10% of Line t5) > $-- Library Project Budget (Ali projects except Mu/t/purpose Projects) If there are no coats in any line item below for the project, specify by putting a zero "0' in the blank prov/ded. 1) 2) 3) 4) 5) 6) 7) 8) 9) 11 12 13 14 15 16 Line Items: New Construction .................................................................................. Remodeling Construction ...................................................................... Contingency ........................................................................................... Appraised Value of Building ................................................................... Appraised Vatue of Land ....................................................................... Site Development .................................................................................. Site Demolition .......................................................................... :: .......... Site Permits & Fees ............................................................................... Site Option to Purchase Agreement ...................................................... Furnishings & Equipment Costs ........ : ................................................... Signage ................................................................................................. Architectural & Engineering Fees .......................................................... Construction Cost Estimator Fees ......................................................... Interior Designer Fees ........................................................................... Geotechnicat/Geohazard Reports ......................................................... Hazardous Matafials Consultant Fees .................................... ~ .............. 17) Energy Audit, Structural Engineering, Feasibility & ADA Studies .......... 18) Library Consultant Fee .......................................................................... 19) Construction/Project Management ........................................................ 20) Other Professional Fees ........................................................................ 21) Local Project Administration Costs ........................................................ 22) Works of Art ........................................................................................... 23) Relocation Costs & Moving Costs ......................................................... 24) Acquisition of Library Materials .............................................................. 25) Other (Specify): Library Automation/Materials Management 26) Other(Specify): Aerial photo ofsite/photos 27) Other (Specify): Artist's rendering of concept plan 28) TOTAL PROJECT COSTS: .................................................................. Eligible Ineligible $ 7,599,200 S 380,000 S0 S0 S 759,900 $ 38,000 S0 S0 S 1,855,300 S 0 S 2,548,200 $ 606,900 S0 S0 $ 86,250 $ 0 SO SO S 2,418,100 S 0 S 72,800 $ 0 S 984,500 S 0 S 42,300 S 0 $190,000 S 0 $ 32,300 S 0 $0 $0 $0 S0 S 41,500 S 0 $ 0 $ 250,000 $ 47,450 $142,600 S 0 $ 500,000 S 0 S 86,8O0 $ 0 $ 500 $ 0 $ 3,470,600 $ 0 S 362,600 $ 0 $ 8000 $ 0 S 5000 $16,677,800 $ 5,851,000 iq* Z3 25 Sources of Project Revenue (AllpmjectsexceptMufopurposeProjects) 29) State Matching Funds (65% of Line 281 Eligible Costs) ................................................................... > $10,840,600 30) Local Matching Funds (Line 28 Eligible Costs minus Line 29) ........................................................... > $ 5,837,200 [Must atso equal the totsl of Lines 31 - 35] Sources of Local Matching Funds: 31) City ................................................................................................... > $5,837,200 32) County ............................................................................................. > $ 0 33) Special District,, ............................................................................... > $ 0 34) Private .............................................................................................. > $ 0 35) Other (Specify): > $ 0 36) Local Credits [Land2 and A&E Fees] ...................................................................................... > $ 0 37) Adjusted Local Match [Line 30 minus Line 36] ........................................................................ > $ 5,837,200 38) Supplemental Local Funds [Same as Line 28 ineligible] ......................................................... > $ 5,851,000 39) TOTAL PROJECT INCOME: [Add Lines 29, 30, and 38] ........................................................ > $ 22,528,800 I Up to u maximum of $20,000,000 2 Land cmdit is not allowed for land acquired by fonds fTOm the "Class Size Reduction Kindergarten-University Public Educa Eon Facilities Bond Act of f 998" [See Education Code secEon 19995 (c) which references Part $8 (commencinn with section f~0400 of the Education Cedel Projected Library Operating Budget (New Public I. ibralfos, including Conversion Projects except Mufopuq)oss Projects) INITIAL START-UP ANNUAL EXPENDITURES EXPENSES EXPENSES 1. Salaries/Benefits 2. Facilities Costs insurance Maintenance [Including Custodial, Trash, Landscaping, etc,] Secudty Utilities Other (Specify): Photocopier-Lease 3. Equipment & Supplies Costs Equipment Supplies 4. Materials Books, AV, Magazines, & Newspapers Electronic Services & Subscriptions Other Formats 5. Other Allocations (As applicable to the proposed project) Administrative/Business Office Branch Operations Circulation Services Facilities & Capital Coordination Program Planning Technical Services Other (Specify): InfoSystems Staff 6. Miscellaneous (Other) 7. TOTAL EXPENDITURES: > $132,000 $1,331,900 > $ 75,000 $ 362,100 $ 50,000 $ 25,000 $ 3,470,600 $ 213,000 > $ 282,800 $ 365,200 > $ 7,000 $ 0 > $ 4,017,400 $ 2,297,200 26 Multipurpose Project Budget (With Library Project Budget) ~.,,.~o.~ ff there ere no cosls in any line dem below for the projnc~ specify by putting · zero "0" in Ifle blank space provided. Line Items: 1. New Construction 2. Remodeling Construction 3. Contingency 4. Appraised Value of Building 5. Appraised Value of Land 6. Site Development 7. Site Demolition 8. Site Permits & Fees 9. Site Option Agreement 10. Furnishings & Equipment Costs 11. Signage 12. Architectural & Engineering Fees 13. Construction Cost Estimator Fees 14. Interior Designer Fees 15. Geotechnical/Geohazard Reports 16. Hazardous Materials Consultant Fees 17. Energy Audit, Structural, ADA, & Engineering Feasibility Studies 18. Library Consultant Fees 19. Construction/Project Management 20. Other Professional Fees 21. Local Project Administration Costs 22. Works of Art 23. Relocation Costs & Moving Costs 24. Acquisition of Library Materials 25. Other (Specify): 26. Total Project Costs: A B Library~ Library Portion Dedicated of Common Eligible Eligible $0 $0 $0 t0 $0 t0 SO SO t0 SO t0 t0 SO t0 $0 SO SO SO SO SO SO tO SO tO $0 SO $0 tO $0 SO SO SO SO $0 SO SO SO t0 SO t0 SO SO t0 SO SO t0 SO SO t0 $0 $0 C Library Total Etiflible D E Library Other2 Total Total Ineligible Ineligible SO $0 $0 tO $0 tO tO $0 tO t0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 t0 $0 $0 $0 $0 SO t0 $0 t0 t0 t0 SO tO tO SO SO tO tO SO tO tO SO tO $0 $0 SO sO SO $0 sO SO SO tO sO tO SO $0 tO $0 sO tO SO SO t0 $0 SO SO SO SO SO SO $0 SO $0 SO $0 SO Ubrary means that portion of the project ~at provides space for the delivery and support of public library direct sew/ms, including joint use school library sew/cas (co-location or joint venture). "Other" uses means any o~er space that does not provide for the delivery and support of public library direct sew/ces. 27 Sources of Multipurpose Project Revenue (Multipuq~ose Pmjnct~ Only) 27. State Matching Funds (65% of Line 26 Eligible Costs~) ................................................................... > $ 28. Local Matching Funds .................................... ~ ......................................................................... > $ [Column C, Line 29 minus Line 27. Must also equal the tolal of Lines 29 - 33] Sources of Local Matching Funds: 29. City ................................................................................................... > $ 30. County .............................................................................................. > $ 31. Special District ................................................................................. > $ 32. Pdvate .............................................................................................. > 33. Other (Specify): > $ 34. Local Credits [Land2 and A&E Fees] .......................... .. ..................................................... :..... > 35, Adjusted Local Match [Line 28 minus Line 34] ........................................................................ > $ 36. Supplemental Local Funds] .................................................................................................... > $ (Same as Line 26 Librmy (D) and Other (E) Total Ineligible) 37. TOTAL PROJECT INCOME: [Add Lines 27, 28, and 36] ........................................................ > $ I Up to a maximum of $20,000,000 2 Land credit is not ailowod ~r land acquired by funds from the "Class Size Reduction Kindergaflen. Universth/Public Education Facilities Bond Act of 1999" [See Education Code section 19995 (c) which references Part 69 (commencing with sec#on 100400 of the EdncaUon Code) Projected Library Operating Budget ~..th,.~..o ~.w Co.sM,o...d Co..,,~oa P,o~la O.ly~ EXPENDITURES 1. Salaries/Benefits 2. Facilities Costs Insurance Maintenance (Including Custodial, Trash, Landscaping, etc./ Secudty Utilities Other (Specify): 3. Equipment & Supplies Costs Equipment Supplies 4, Materials Books, AV, Magazines, & Newspapers Electronic Services & Subscriptions Other Formats 5. Other Allocations (As applicable to the proposed project) Administrative/Business Office Branch Operations Circulation Services Facilities & Capital Coordination Program Planning Technical Services Other (Specify): INITIAL START-UP ANNUAL EXPENSES EXPENSES > $ $ > $ > $ $ > $ $ > $ $ 6. Miscellaneous (Other) 7. TOTAL EXPENDITURES: > $ $ > $ $ Applicants with new public library projects shall descdbe their financial capacity to open and maintain operation of the proposed library including anticipated revenue soumes for library operations support. The City of Chula Vista funds library operations with General Fund discretionary revenues such as Sales & Use Taxes and Property Taxes. The Fiscal Year 2003 Proposed Budget for the City's General Fund totals $109.5 million. The General Fund has achieved operating surpluses (revenues in excess of expenditures) averaging $7.1 million over the last 5 fiscal years. It is estimated that annual operating costs for our new library proposal will be approximately $2.3 million. At approximately 2% of the General Fund budget by the time the library would be operational cleady the City of Chula Vista has the fiscal capacity to open and operate the facility. Provide the timetable for the proposed project. Show estimated dates of completion for future activities, as well as actual dates for activities already completed. ACTIVITY DATE 1~ Planning and Land Use Permits Obtained (If Applicable) > N/A 2. Site Acquired (Obtain possession by Purchase, Donation or Lease) > 04/12/93 3. Schematic Plans Completion > 10/18/03 4. Design Development Plans Completion > 01/02/04 5. Working Drawings (90%) Completion > 04/03/04 6. Construction Documents Completion > 5/12104 7. Project Advertised for Bids > 08/16/04 8. Start of Construction > 09/01/04 9. Estimated Mid-Point of Construction > 12/31/04 10. Completion of Construction > 07/30/05 11. Opening of Library Building to the Public > 10/31/05 12. Final Fiscal & Program Compliance Review Completed > 08/28/06 SIGNATURES The parties below attest to and certify the accuracy and truthfulness of the application for California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 funds. If the application is successful, the applicant agrees to execute the project on the basis of the application data provided herein including all supporting documents. [AUTHORIZED OFFICIAL OF THE APPLICANT JURISDICTION Signature of Mayor, Chairperson of Board of Supervisors, or Head of District, authorized to make application for the local jurisdiction. F / ~.~nature > Stephen C. Padilla > Mayor, City of Chula Vista Name (type) Title (type) ~RY DIRECTOR OF THE OPERATING LIBRARY JURISDICTION I hereby affirm that the library jurisdiction, for which I am the administrative agent, approves of the application and will operate the facility as a public library after its completion. A oo. Date > David J. Palmer > Deputy City Manager/Library Director Name (type) Title (type) SUBMIT COMPLETED APPLICATION FORM AND SUPPORTING DOCUMENTS ACCORDING TO INSTRUCTIONS IN SECTION 20440 MAIL APPLICATION AND SUPPORTING DOCUMENTS TO: Bond Act Fiscal Officer Office of Library Construction 1029 J Street, Suite 400 Sacramento, CA 95814-2825 Attachment C Joint Cooperative Agreement Between the City of Chula Vista and the Chula Vista Elementary School District For Cooperative Services Located at and delivered from the Rancho del Rey Branch Of the Chula Vista Public Library March 2003 A. Parties This AGREEMENT is made and entered into by and between the City of Chula Vista, a chartered municipal corporation of the State of California ("City"), and the Chula Vista Elementary School District ("District"), a political subdivision of the State of California. This agreement is made with reference to the following facts: B. Recitals Whereas, the California Reading and Literacy Improvement and Public Library construction and Renovation Bond Act of 2000 ("Bond Act") declares the following in the Bond Act's Sec. 19985.5: · Reading and literacy skills are fundamental to success in our economy and our society · The Legislature and Governor have made enormous strides in improving the quality of reading instruction in public schools · Public libraries are an important resource to further California's reading and literacy goals both in conjunction with the public schools and for the adult population · The construction and renovation of public library facilities is necessary to expand access to reading and literacy programs in California's public education system and to expand access to public library services for all residents of California; and Whereas, the City is applying for funds from the Bond Act and Sec. 19994, (a)(1) states that "First priority shall be given to joint use projects in which the agency that operates the library and one or more school districts have a cooperative agreement"; and Whereas, the Chula Vista Public Library's Literacy Team ("Literacy Team") and the District have had over 10 years of cooperative agreement to provide a federally funded Even Start Family Literacy Program; and Whereas, the Literacy Team has recognized the call for after school literacy tutoring for elementary school children and now offers the Library Educational After School Reading Program ("LEAP") at two branch libraries to serve 3rd through 6t~ grade students; and Whereas, the Educational Services division of the Chula Vista Public Library ("CVPL') and the District currently have a cooperative agreement for after school programming; and 1 C:~Documents and Settings\paulabhMy Doeuments\Word97\EASTSlDE LIBRARY-PROP 14\CVESD Early Childhood ProjectLMARCH '03 rev. of FINALMOU-Appvd by CV Attomey4-29-02.doc /¢.3c] Whereas, the CVPL and the District currently have a cooperative agreement for Library Skills Instruction to Lauderbach Elementary School students; and Whereas, the CVPL Strategic Plan 2002-2006 calls for priority to basic literacy and community collaboration; and Whereas, the CVPL Needs Assessment telephone survey and participation showed tremendous support for children's services and programs; and Whereas, the City and the District now seek to def'me the responsibilities and rights of the Parties concerning the two programs described in this Joint Cooperative Agreement. Now therefore be it resolved the parties hereby agree as follows: C. Definitions The Rancho del Rey Branch Library ("Rancho del Rey branch") of the Chula Vista Public Library System, its site, and its materials, at the NW comer of East H and Pasco Ranchero are owned, operated, fumished, maintained, and managed by the City. Weekly honrs of operation ("Hours") of the Rancho del Rey branch to the public will be at least 58 hours. The exact configuration will be determined before the beginning of the fiscal year in which the Rancho del Rey branch is scheduled to open. D. Condition Precedent This Agreement shall not be effective unless and until City receives the award of grant funds pursuant to the California Reading and Literacy Improvement and Renovation Bond Act of 2000 for the construction of the Rancho del Rey branch. E. Term of Agreement The City and the District agree to provide joint venture services consistent with the intent of this agreement for a period of 20 years from the effective date of this agreement. The Effective Date ("effective date") of this agreement shall be 9 months before the first day of the fiscal year in which the operation of the new Rancho del Rey branch of the CVPL is projected open to the public. Joint Use Services (a) The City and the District agree to collaboratively ma'mtain the Born to Read Family Resource Center ("FRC"), a family literacy program: i. The FRC will be located in the Children's Library at the Rancho del Rey branch. It will be open to the public all posted public hours of the Rancho del Rey branch. The goal of the FRC is to provide children, infancy through kindergarten, and their parents, caregivers, and teachers with an Early Education Specialist, CSDocuments and Scttings\paulabhMy Documents\Word97~EASTSIDE LIBRARY-PROP 14\CVESD Early Childhood Project~vlARCH '03 rew of FINALMOU-Appvd by CV Attomey4-29-02.do¢ library books and materials, parenting information, and developmentally appropriate programming to support emergent literacy and language skills. ii. Roles and Responsibilities of the City and District The City shall administer the Rancho del Rey Library and the Bom to Read Family Resource Center. The City and its Library Director shall retain all authority for rendering of services, standards of performance, hiring and control of personnel, and other matters incident to the performance of services pursuant to this Agreement. First year staffing includes: i. 1FTE Early Education Specialist ii. 1.5FTE Library Associate iii.1 Southwestern College early childhood education intern The City shall provide a full-time professional employee designated as the Early Education Specialist to manage the delivery of service from the Bom to Read Family Resource Center. 3. The District's Early Intervention Department will provide training and technical assistance to the FRC staff as part of the District's ongoing staff development program. 4. The District will identify and provide content area specialists to consult with FRC staff and patrons on topics including early childhood speech and hearing, language acquisition, behavior issues, special education services, community resources for families, and others. 5. The District's Director of Early Intervention will serve as a liaison between the District and the City to provide regular input and feedback to designated library management on staffing, programming, operation, and ongoing evaluation of FRC services. 6. The District's Director of Early Intervention will be a member of the hiring panel to select the FRC's Early Education Specialist. 7. The District will provide curriculum to be utilized by the FRC staff and will make recommendations for the FRC's materials and resource collection. 8. The District will work with the City to identify grant sources for program enhancements, and will provide in- kind services of the District grant writer in preparation and submittal of requests for funding. C:\Documents and Settings\paulab\My Doeuments\Word97~EASTSIDE LIBRARY-PROP 14\CVESD Early Childhood Project~viARCH '03 rev. of FINALMOU-Appvd by CV Attorney4~29.02.doc 9. The District will publicize and disseminate promotional materials about the FRC to District parents and teachers. (b) The City and the District agree to collaboratively operate and provide structured After School Programming for the educational and recreational enrichment of 1 st-6th grade elementary school children. The goal of the City and District's After School Program is to offer daily structured educational and recreational enrichment programs to students lSt'6th grade located on elementary school campuses designated by the District administered from the Rancho del Rey library. (c) Roles and Responsibilities of the City and District i. The City and the District will jointly fund the After School Program from a combination of general funds, State Library funds, State Education funds, and grant resources. All funding is subject to the annual budget approval process by the City Council and the District Board of Education. The City shall administer the After School Program. The City and its Library Director shall retain all authority for rendering of services, standards of performance, hiring and control of personnel, and other matters incident to the performance of services pursuant to this Agreement. The After School Program will be designed, implemented and administered by the Educational Services division of the Library from the Rancho del Rey branch. First year staffing includes: a. 1FTE Educational Services Manager b. 3FTE Extended Day School Supervisors c. Trained hourly part-time staff will be hired for each participating school site ii. iii. The District will provide training and technical assistance to the After School Program as needed and requested by the City. iv. The District will provide a liaison between the District, school principals, and the City to offer regular input and feedback to designated library management on staffing, programming, operation, and ongoing evaluation of the After School Program. v. The District will provide school personnel to serve as members of the hiring panels to select After School Program staff. vi. The District will work with the City to identify grant sources of funding, and will provide in-kind services of the District grant writer in preparation and submittal of requests for funding. C:LDocuments and Settings\paulab\My Documents\Word97kEASTSIDE LIBRARY-PROP 14\CVESD Early Childhood Project\MARCH '03 rev. of FINALMOU-Appvd by CV Attorney4-29-02.doc 4 vii. The District will publicize and disseminate promotional materials about the After School Program to all District parents and teachers. G. The City and the District agree that a Joint Decision making Panel ("Panel") shall govern the details of the Born to Read Family Resource Center and the After School Program The Panel is comprised of the following District and City Employees (a) District: · Executive Director of Business Services · Assistant Superintendent for Community and Government Services · Director of Early intervention (b) ci : · Library Director · Assistant Library Director · Educational Services Manager H. Modifications to the Joint Cooperative Agreement The Panel shall meet annually, no less than 6 months prior to the beginning of the fiscal year in which the programs are to begin or be renewed to: · review and recommend to the Chula Vista City Council and Chula Vista Elementary School District Board of Trustees modifications or changes to this Joint Cooperative Agreement between the City and the District. · identify, plan, and implement services of the two Programs. (a) The Panel will submit a recommendation to the Chula Vista City Council and the Chula Vista Elementary School District Board of Trustees, an annual Memorandum of Understanding (MOU) for each of the two Programs. The MOUs shall be presented to the District and City prior to each jurisdiction's budget approval process. These MOUs shall include: i. Services to be delivered during the July-June time period for each 12 month period ii. Level of services to be delivered during the July-June time period for each 12 month period iii. Service delivery methods iv. Hours of service delivery during the July-June time period v. Program operating budget vi. Number of paid FTE personnel vii. Supervisory responsibilities viii. Source(s) of funding for the program ix. Fiscal agent x. Volunteers required from the C2Documents and Settings\paulab\My Documents\Word97XEASTSIDE LIBIL~RY-PROP 14\CVESD Early Childhood Projeet~IARCH '03 rev. of FINALMOU-Appvd by CV Att~mcy4-29-02.do¢ 5 xi. City and District xii. Ownership and location of required furnishings, equipment, and workspace xiii. In Kind contributions of staff and services xiv. Identify City and District staff liaisons Field Act Applicability (a) The Rancho del Rey Branch library building is not required to meet the Field Act requirement as described in the State of California Division of State Architect's letter to the State Librarian of California dated January 11, 2001. i. The Rancho del Rey branch does not meet either of the two requirements that trigger the Field Act, as described in the State of California Division of State Architect's letter to the State Librarian of California dated January 11, 2001. Those requirements are: 1. The building is located on school property, or 2. The building or portion of the building provides space for required educational purposes for more than 24 pupils enrolled in kindergarten or any of the grades 1-12 at any one time in the building. 40 Year Commitment (a) The City agrees to deliver public library direct service from the Rancho del Rey Branch of the CVPL for 40 years as required by the Bond Act. (b) The City acknowledges and incorporates in this document, as required by the Bond Act, California Education Code section 19999, and the Bond Act's Final (Codified) Title 5 regulations section 20440 (e)(3)(G) · California Education Code section 19999: (a) A facility, or the part thereof, acquired, constructed, or remodeled, or rehabilitated with grants received pursuant to this chapter shall be dedicated to public library .direct service use for a period of not less than 20 years following completion of the project. (b) The interest of the state in land or a facility, or both, pursuant to the funding of a project under this chapter, as described in subdivision (a), may be transferred by the State Librarian from the land or facility, or both, for which that funding was granted to a replacement site and facility acquired or constructed for the purpose of providing public library direct service. (c If the facility, or any part thereof, acquired, constructed, remodeled, or habilitated with grants received pursuant to this chapter ceases to be used for public library direct service prior to the expiration of the period specified in subdivision (a), the board is entitled to recover, from the grant recipient or the recipient's successor in the maintenance of the facility, an amount that bears C:\Documents and Se~ings\paulabLMy Documents\Word97\EASTS IDE LIBRARY-PROP 14\CVESD Early Childhood Project~vlARCH '03 rev. of FINALMOU-Appvd by CV Attomey4-29-02.doc 6 the same ratio to the value of the facility, or the appropriate part thereof, at the time it ceased to be used for public library direct service as the amount of the grant bore to the cost of the facility or the appropriate part thereof. For purposes of this subdivision, the value of the facility, or the appropriate part thereof, is determined by the mutual agreement of the board and the grant recipient or successor, or through an action brought for that purpose in the superior court. (d) Notwithstanding subdivision (f) of Section 16724 of the Government Code, any money recovered pursuant to subdivision (c) shall be deposited in the fund, and shall be available for the purpose of awarding grants for other projects. · Section 20440(e) (3) (G) of Title 5, Library Bond Act Regulations, Library Construction and Renovation Bond Act of 2000 A commitment that the facility shall be dedicated to public library direct service use for a period of 40 years following completion of the project, regardless of any operating agreements the applicant may have with other jurisdictions or parties. K. Causes for Term'mation, Removal or Suspension Either party may terminate for cause this agreement by giving written notice to the other party of such termination and specifying the effective date thereof at least 10 working days before the effective date of each term. Events triggering the right of either party to terminate this agreement are: (a) Complete destruction of facility (b) Failure of City or District to fund the Programs (c) Failure of City or District to comply with federal, state and agency laws, policies and procedures. L. Operation Expense, Maintenance and Repair (a) Except as herein provided, the City agrees to operate, maintain and repair, at its own expense, the Rancho del Rey branch, normal wear and tear excepted. (b) City agrees to maintain computer hardware and telephone as well as furnishings provided by the City. (c) Operational Matters i. District staff assigned to City Library shall be required to sign computer usage agreements and comply with City policies and procedures on use of City provided computer equipment and system. ii. The City shall provide keys for District s aff assigned to the Library to access Library facilities. CSDocuments and Seitings\paulab~'ly Documents\Word97kEASTSIDE LiBRARY-PROP 14\CVESD Early Childhood ProjecthMARCH '03 rev. of FINALMOU-Appvd by CV Attomey4-29-02.doc 7 M. Intellectual Freedom (a) The District acknowledges and accepts that CVPL subscribes to the American Library Association's Library Bill of Rights and Freedom to Read Statement. (b) Neither Party shall remove, label, or prohibit access to any book, periodical, audio visual material, microfilm and/or public use computer owned by the City and provided in the CVPL. N. Standard of Employees The District and the City are committed to provide a safe and positive work environment, and will be responsible for handling personnel issues in a timely and professional manner while acknowledging employee representation, and compliance with federal, state and agency laws, policies and procedures. O. Liability for Damage- Property and Personal The City and District agree to defend, indemnify and hold harmless each other against any and all claims asserted or liability established for damages or injuries, including death, to any person or property, including an officer, agent or employee of one of the parties, which arise from or are connected with or are caused or claimed to be caused by the negligent acts or omissions in carrying out the terms of this agreement; provided, however, that no duty to indemnify or hold harmless one party shall arise or exist regarding the established sole negligence or willful misconduct of that party. P. Remedies for Breach (a) Default in Performance Ifa party shall default in the performance of any covenant or condition required by this Agreement to be performed by such party, then the other party will give the breaching party notice citing such default and demand the breaching party or any person claiming right through breaching party to correct such default noticed, and upon giving such notice, the breaching party shall correct such default as soon as practicable, but in no event later than 30 days. Failure of breaching party to correct default may be the basis for an injunctive order, writ of mandate, or other equitable action. (b) Waiver Any waiver of a default by either party is not a waiver of any other default. Any waiver of a default must be in writing and be executed by the chief executive officer of the party in order to constitute a valid and binding waiver. Delay or failure to exercise a remedy or right is not a waiver of that or any other remedy or right under this agreement. The use of one remedy or right for any default does not waive the use of another remedy or right for the same default or for another or later default. Q. Miscellaneous Notices C:~Documents and Se~Xings\paulabXMy Documents\Word97~EASTSIDE LIBRARY-PROP 14\CVESD Early Childhood ProjecthMARCH '03 rev. of FINALMOU-Appvd by CV Attorney4-29-02 doct 4~. ~'~ ~O All notices and demands shall be given in writing by personal delivery or first-class mail, postage prepaid. Notices shall be addressed as appears below for the respective Party, provided that, if any Party gives notice of a change of name or address, notices shall be appropriately modified to reflect such changes. Notices shall be deemed received seventy-two hours after deposit in the United States mail. Notice to the District: Chula Vista Elementary School District Superintendent 84 East J Street Chula Vista, CA 91910 Notice to the City: City of Chula Vista City Manager 276 Fourth Avenue Chula Vista, CA 91910 R. Compliance with Law Both parties shall at all times in the maintenance, occupancy, and operation of a Facility, and in provision of service, comply with all applicable laws, statutes, ordinances, and regulations of City, County, State, and Federal Governments, at that party's sole cost and expense. In addition, both parties shall comply with any and all notices issued by the other party under the authority of any such law, statute, ordinance, or regulation. S. City Approval The approval or consent of City, wherever required in this agreement, shall mean the written approval or consent of the City Manager unless otherwise specified, without need for further resolution by the City Council. T. Partial Invalidity If a court of competent jurisdiction finds any term, covenant, condition or provision of this agreement invalid, void, or unenforceable, the remaining provisions will remain in full force and effect. U. Entire Understand'mg This agreement contains the entire understanding of the parties. Both parties, by signing this agreement, agree that them is no other .written or oral understanding between the parties with respect to this agreement. Each party has relied on its own examination of the premises, advice t~om its own attorneys, and the warranties, representation, and covenants of the agreement itself. Each of the parties in this license agrees that no other party, agent or attorney of any other 9 C:\Docum~ms and Setting$~paulab~vly Documcnts\Word97~ASTSIDE LIBRARY-PROP 14\CVESD Early Childhood Project~v~ARCH '03 rev. of F1NALMOU-Appvd by CV Attomcy4-29-02.doc party has made any promise, representation, or warranty whatsoever which is not contained in this agreement. The failure or refusal of any party to read this agreement or other documents, and obtain legal or other advice relevant to this transaction constitutes a waiver of any objection, contention, or claim that might have been based on these actions. No modification, amendment, or alteration of this agreement will be valid unless it is in writing and signed by all parties. V. Disputes Any dispute involving this Agreement may be submitted in writing to the City's Library Director or his/her designee and to the District's Director of Operations and the District's Early Intervention Director. The Parties, in good faith, shall attempt to resolve said dispute. W. Amendment This Agreement may only be amended by the written consent of all the Parties at the time of such amendment. X. Further Assurances Each Party hereto agrees to perform any further acts and to execute and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement Y. Goveming Law This Agreement has been executed in and shall be governed by the laws of the State of California. Z. Headings and Interpretation This Agreement shall be construed as a whole and in accordance with its fair meaning. Captions and headings are for convenience and shall not be used in construing meaning. AA. Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. BB. Authority The City and the District represent that the individuals signing this Agreement have full right and authority to bind their respective Parties to this Agreement. CC. Invalidity If any term, covenant, condition or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. C:\Documents and Settings\paulabkMy Documents\Word97kEASTSIDE LIBRARY-PROP 14\CVESD Early Childhood Project~vlARCH '03 rev. of FINALMOU-Appvd by CV Attorney4-29-02.doc I0 1N WITNESS HEREOF, the City and the District have executed this Agreement thereby indicating they have read and understood the same, and indicate their full and complete consent to its terms: Dated: ,2003 City of Chula Vista By: Stephen C. Padilla, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: Ann Y. Moore, City Attorney Dated: March 18 ,2003 Chula Vist~ Elememtar3Mgckoo'l District District Superintendent C:~Documents and Settings\paulabWly Documents\Word97~EASTSIDE LIBRARY-PROP 14\CVESD Early Childhood ProjectW!ARCH '03 rev. of FINALMOU-Appvd by CV Attomey4-29-02.doc 11 0 0 Attachment D Attachment E RANCHO DEL REY BRANCH LIBRARY PLAN OF SERVICE CHULA VISTA PUBLIC LIBRARY CHULA VISTA PUBLIC LIBRARY RANCHO DEL REY BRANCH LIBRARY PLAN OF SERVICE III. IV. Executive Summary Chula Vista Public Library - Mission/Vision A. Mission Statement B. Vision Statement Chula Vista Public Library Plan of Service A. How Rancho del Rey Branch Library fits into CVPL Plan of Service i. 1987 & 1998 Library Facility Master Plans ii. 2001 Rancho del Rey Branch Library Needs Assessment iii. Library Strategic Plan 2002-2006 Goals/Objectives/Service Indicators A. Chula Vista Public Library B. Rancho del Rey Branch Library Rancho del Rey Branch Library Plan of Service A. Programming i. Joint-Venture Agreement ii. Rancho del Rey Branch Library as a Community Center iii. Children's Services iv. "Bom to Read" Family Resource Center v. Young Adult Services vi. Information & Reader's Services vii. Cimulation Services viii. Administration of the Educational Services Division's Programs B. Community Services/Partnerships/Special Services C. Public Service Hours D. Staff and Volunteers E. Collections i. Children's Collection ii. "Bom to Read" FRC Collection iii. Young Adult Collection iv. Foreign Language Collection a. Children's b. Adults' v. Cultural Heritage Collections vi. Reference Collection vii. New Books viii. Adult Fiction and Non Fiction ix. Audio Visual Collection x. Periodicals and Newspapers xi. Materials Collection Chart 4 6 6 6 6 8 9 9 9 10 13 13 14 15 17 19 24 25 26 27 29 31 31 35 36 36 38 38 38 39 40 40 40 41 41 42 42 2 VI. F. Technology i. Executive Summary ii. Chula Vista Public Library - Current Status of Technology iii. Chnla Vista Public Library - Technology Vision/Plan iv. Rancho del Rey Branch Library - Applications of Technology a. Wiring and Cable b. Circulation Services c. Information and Reader's Services d. "Bom to Read" Family Resource Center e. Other Technological Applications v. Technology Inventory Chart Library Service Area Map 47 48 51 52 53 53 54 55 56 57 60 1. EXECUTIVE SUMMARY The Rancho del Rey Branch Library is one of four regional-size City of Chula Vista branch libraries called for in both the 1987 and 1998 Library Facilities Master Plans. Although there are now branch libraries in three of the four quadrants of the City, there is no branch library in northeast Chula Vista. Therefore, the 47,134 residents in that area must drive to either the joint- use library in southeast Chula Vista (only open 24 hours per week) or to the full service Civic Center Branch Library, located cross-town, or approximately 5 miles from the center of the northeast quadrant. This situation will only worsen as the area grows. It is estimated that the Rancho del Rey Branch Library service area will actually have 54,400 residents at build-out in 2020. When built, the Rancho del Rey Branch Library will be a full service regional library. It is anticipated to be open 63 hours per week to serve the needs of the community. Public services will be enhanced by having one exceptionally long day of service - opening at 7am and closing at 1 Opm on Wednesdays. The Chula Vista Public Library's five year Strategic Plan (2002-2006) identifies the six primary service responses to be provided by the system. As a result of considerable input from the residents (via telephone surveys, town hall and focus group meetings, etc.) the Rancho del Rey Branch Library will concentrate on five of those: Basic Literacy, Commons/Community Center, Current Topics and Titles, General Information, and Lifelong Learning. The library as a Community Center is one of the most important features of this facility. Time and time again, the public has asked that there be "a there there" (to borrow from Gertrude Stein) in northeast Chula Vista. The community craves something more than just grocery stores and big box retailers. They want the Rancho del Rey Branch Library to serve as the central gathering point, the focal point, and the heartbeat of the community. Therefore, there will be numerous programs and events for adults, young adults and children, meeting rooms for community groups to use, art and history displays, and a Friends bookstore and caf6 to use as a neighborhood living room. The public service staff of 32.56 FTE and 20 volunteer positions will provided a broad range of services to a multi-cultural, family oriented clientele. Library users will begin their visit to the branch by stopping at the one-stop Customer Services Desk centrally located near the entrance and convenient to all parts of the building. Here patrons can sign up for a library card, pay their fines, reserve computer time, ask for directions or ask a reference question. Staff members, working on the floor (not sitting behind desks) in the children's, reference/Interact and adult stacks areas, will support the Customer Service Desk. These Customer Service Representatives will be easily identifiable to patrons and will be able to offer assistance with the catalog, teach someone how to do an Interact search, find a particular book or subject area, or answer a detailed question. This staff of"rovers" will be available in all areas of the library during ~ open hours, except during the extended hours of 7-10 am and 8-10 pm on Wednesdays. 4 The Library will be able to support this high level of hands-on customer service because it intends to further automate circulation services. By using a Radio Frequency Identification based system, self-check-in will be a greatly enhanced experience for the library patron and self- check-in (with an automated sorting system) will now be a viable option. As a result, the Library intends to transfer many positions now devoted to circulation functions to information and reader's services. Of course, there will still be someone available to help with a circulation related exception or question. Staff and public both will have access to an incredible range of materials at the Rancho del Rey Branch Library. There will be a collection of over 170,000 books, audio-visual materials and newspapers and magazines. Because the service area has a large Hispanic and Spanish speaking population, over 28,000 items will be in Spanish. Additionally, there will be unique and quite large (some 17,000 volumes) Cultural Heritage collections focusing on Filipinana, Pan-Asian and Hispanic/Latino cultures in reflection of the community's diversity. Library users will also have access to a wealth of electronic resources via the Library catalog and/or website, including numerous subscription databases and well-regarded free Internet sites. The centerpiece of the Rancho del Rey Library will be the unique joint-venture with the Chula Vista Elementary School District.~ The "Bom to Read" Family Resource Center (FRC) will provide eastside residents with something their westside counterparts have long had...access to a community hub for healthy child and family development, parent and community involvement, and life-long literacy beginning at birth. The "Bom to Read" FRC is designed to be a place for early childhood information, parent education, and family support. It will especially concentrate on teaching the joy of reading since a child's earliest experiences with language and literacy begin the first months of life and form a critical foundation for later reading success. Working under the guidance of an Early Childhood Specialist, the "Bom to Read" FRC will ensure that neighborhood children are ready to read as the move from infancy, to preschool, to kindergarten and into first grade. Partnerships and collaboration will be essential to the success of the Rancho del Rey Branch Library. The Elementary School District is, of course, involved with the joint-venture programs. But there will also be partnerships with nearby Southwestern College, the Chula Vista Coordinating Council, and the national organization Libraries for the Future (Family Place Project) in order to ensure that the "Bom to Read" FRC flourishes. The branch will also collaborate with the YMCA and the Chula Vista Fire Department, both of which are neighbors to the site, on progranuning and special events, which will especially appeal to children and young adults. The Rancho del Rey Branch Library will bring equity of service to northeast Chula Vista by ensuring that 47,000 people do not have to go without library service. It will bring the community a sense of place, it will teach young children how to read, it will provide teens with a place to gather, students with a place to study, and adults a place to reflect and learn. It will he a great library. ~ Chula Vista docs not have a unified school district. There are separate elementary and high school districts. 5 II. CHULA VISTA PUBLIC LIBRARY - MISSION/VISION In the early 1980s, The City of Chula Vista (CVPL) began to change - both demographically and geographically. In response, the Chula Vista Public Library began to systematically plan. A Management by Objectives system was implemented, standard performance measurements were established, and a facilities master plan was written. In the 1990s, technology plans were introduced and the facilities master plan was updated. By the turn of the century, it was obvious that the Library needed a formal Strategic Plan. That plan was written in 2001 and included new Mission and Vision Statements. II.A. Mission Statement The purpose of the Chula Vista Public Library is to increase knowledge and enrich lives within the community. We accomplish this by connecting people equitably to responsive programs, services and resources that reflect the ideals of a democratic society. II.B Vision Statement The Chula Vista Public Library - Offering Opportunities to Seek, Find, Know and Imagine IlL CHULA VISTA PUBLIC LIBRARY PLAN OF SERVICE As a result of the 1998 Library Facilities Master Plan and the 2001 Library Strategic Plan, a commitment has been made to construct a future branch library at the Rancho del Rey site. As required by the Library Bond Act application process, a separate needs assessment has been done specifically for this project and is referenced herein. The remainder &this report will outline the required plan of service for the Rancho del Rey Branch Library, beginning first with a discussion of this branch's place within the library system. III.A. How the Rancho del Rey Branch Library fits into the CVPL Plan of Service III.A.i. 1987 and 1998 Library Facility Master Plans In 1987, the City Council accepted the Chula Vista Public Library Master Plan: Facilities Planning to the Year 2010. The report, which was commissioned following the Montgomery annexation, was designed to assess the City's future library facility needs and outline the most appropriate, cost effective, long term strategy for public libraries in Chula Vista. It recommended that the City build three new regional size libraries in Montgomery/Otay, Sweetwater/Bonita (the Rancho del Rey area) and the Eastern Territories to complement the existing facility in the Central/Bayfront area. The plan also outlined square footage requirements as well as staffing, collections and other standards. The 1987 Library Facilities Master Plan was instrumental in setting the course for branch library development. By 1995, the 10,000 square foot joint-use EastLake Branch Library (serving the 6 Eastern Territories) and the 37,000 South Chula Vista Branch Library (serving the Montgomery/Otay area) joined the existing 55,000 square foot Civic Center Branch Library (serving Central/Bayfi'ont area). By early 1997 the City's Growth Management Overnight Commission was asking that the Library, Fire and Police Departments develop new master plans in light of expected growth of the city. As a result, by the end of the year, the firm of David M. Griffith and Associates began the revision of the Library Master Plan. Their premise was that the plan would be based on assessing the needs of the community and applying the appropriate City and Library standards. They began their work with a detailed needs assessment that included key leader interviews, focus groups, and town-hall meetings. In February and March 1998, a community telephone survey was conducted to ascertain general attitudes, use patterns and overall satisfaction levels of Chula Vista residents regarding the Chula Vista Public Library. The survey found that 71% of all City households have at least one member who possesses a current Chula Vista Public Library card, and that two-thirds of all City residents used the library within the last twelve months. Although respondents indicated that they were fairly satisfied with the existing facilities, most east side residents wanted a new, full service facility located east of 1-805. Library users also were interested in a variety of other service improvements, including: · Collection enhancements · Increased programming · Services to facilitate remote access to the library from home, work or school · Improved access to computer technology · Increased service hours · Improved patron work areas Additionally, the needs assessment includes a detailed analysis of the Library's usage and financial picture. A comparison of those statistics with similar sized independent city libraries in California was then conducted and is included in the master plan. The consultants found that the Chula Vista Public Library: · Is one of the busiest in the state, with cimulation and reference service levels that are appreciably higher than most city libraries serving similar size populations. · Has more staff per capita than comparison libraries, but this level of staffing is consistent with a higher level of activity for reference and circulation. · Has operating expenses, which are approximately equal to the average of the comparison. · Has per-capita materials expenditu~e below the average of comparison libraries. · Has fewer service outlets per capita than two-thirds of the libraries surveyed · Has more resources and offers more service hours than most neighboring public libraries (National City, the City of San Diego and the County of San Diego). Once the needs assessment was complete, the project team turned to the issue of planning standards and the impact of new technology on library service and space needs. Finally, the planning parameters were applied to the City's population forecasts to determine square footage needs. Location criteria and various library service concepts were also examined. The ultimate result of this effort was a set of recommendations to guide the physical development of the Library system over the next decade. The relevant mcommendatious were: Provide a full service regional library facility (approximately 30,000 square feet) east ofi-805 as soon as possible. Utilize the City owned Rancho del Rey site (at the northwest comer of East H Street and Pasco Ranchero for the first east side library as soon as possible. Construct a second (and final) 30,000 square foot regional library in the Eastern Urban Center of the Otay Ranch, probably near the year 2015 to replace the existing EastLake Branch Library Revise the Library Master Plan in ten years or before construction of the second east side library. III.A.ii. 2001 Rancho del Rey Branch Library Needs Assessment In the spring of 2001, an additional needs assessment was conducted to specifically verify that a branch library was needed and wanted in the northeast section of Chula Vista. In June 2001, another telephone poll of 400 residents citywide found that 69% of respondents indicated that they or a member of their household had a library card. Slightly less than 50% of respondents had used the Library during the last year. The survey found that convenience was the most important factor in deciding to use a particular library facility. It also ascertained that a quarter of all Chula Vista residents reported that they would use a new branch east of 1-805, while 55% of respondents living east of 1-805 reported that they would more likely use a new eastern library. Perhaps most importantly, 24% of the respondents who currently do not use the Library stated that they would be more likely to use a new eastern branch. This supports the previous finding that a convenient library branch location is the most critical use factor. 8 /¢-¢0 As might be expected, the participants who took the time to attend various town hall meetings and focus groups on the topic of a new Rancho del Rey Branch Library were in support of the proposed branch library. No alternative sites were suggested. Over the course of almost fifteen years and three separate needs assessments - the results have been the same. The community wants and needs the branch library in the northeast section of the City. This new branch library fits precisely into the Chula Vista Public Library's overall plan of service and will complete the four-branch system plan originally designed in 1987. Finally, the Rancho del Rey Branch Library will provide library service to the 47,134 people, currently living in the northeast service area, who presently do not have a convenient branch library. A population that has grown fi.om 24,500 in 1980 - a 92.38% increase. Projected build-out population, in 2020, is 54,439. llI.A.iii. Library Strategic Plan 2002-2006 In 2001, the Library undertook the development of a five-year strategic plan to sharpen organizational focus, define priorities, and help the Library pursue its mission with renewed vigor. As outlined above, the plan created new Mission and Vision statements that stress equitable service and the provision ofoooortunities to seek, find, know and imaeine. As the needs assessment points out, it is essential that libraries be conveniently located if they are going to be used. The Rancho del Rey Branch Library will provide that convenient access to more than 47,000 people and insure equitable access to service. By providing that service equitably, the Chula Vista Public Library will ensure that those 47,134 people currently not served by a branch library, will have the opportunities to seek, find, know and imagine. IV. GOALS/OBJECTIVES/SERVICE INDICATORS IV.A. Chula Vista Public Library One of the most important outcomes of the Chula Vista Public's 2001 library strategic planning process was the identification of library service responses appropriate for our community. Using the Public Library Association's New Plannine For Results as a guide, six distinct service responses were established. These were selected by the Strategic Plan Steering Committee (a broad based group consisting of 20 community members, 13 Library staff members, and 5 City staff members) based upon the standard needs assessment process - review of existing services, data analysis, telephone interviews, focus groups, etc. The service responses are: · Basic Literacy - CVPL will provide a learning environment, specialized materials, and access to trained tutors to help people reach their personal literacy goals. · Commons - CVPL will provide public space for meeting, gathering and public discourse that is recognized as inviting, neutral, and safe by all individuals and groups in the community. · Current Topics and Titles - CVPL will provide a current collection of sufficient titles in high demand to ensure customer requests are met quickly. Materials will be 9 offered in formats and in the languages people want and will be selected primarily on the basis of local demand. · General Information - CVPL will offer print, non-print and electronic reference resources that cover a broad variety of topics. The library will provide staff skilled in determining users' needs and in locating relevant information that satisfies those needs. Internet access will be provided for staff and public use. · Lifelong Learning - CVPL will maintain an extensive collection of circulating materials on a wide variety of topics in which the general public has a sustained interest. Collections will be easily accessible and organized. Knowledgeable staff will provide expert assistance on subjects and topics of interest to the general public. · Local History - CVPL will provide a significant collection of materials and other resources that chronicle the history of Chula Vista and South Bay. As part of the planning process, the Strategic Plan Steering Committee also created a set of strategic initiatives designed to address areas of concern in five areas: programming and clients, staff and volunteers, marketing and communications, facilities and finance. A series of 37 goals and hundreds of objects were then developed in response to the identified strategic initiatives and are designed to implement the service responses. Some of those key system-wide goals are: · Encourage young people to develop an interest in reading and learning through a variety of services for children and young adults · Maintain an excellent and responsive materials collection · Deliver accurate and efficient information services · Provide opportunities for lifelong learning · Collect, Preserve and make available the history of Chula Vista · Enter into partnerships · Assess community needs and user satisfaction · Embrace diversity · Adhere to ALA's Code of Ethics · Commit to a high quality of work life · Grow the Library Endowment · Maintain the Library's per capita operating budget in the upper quartile · Use technology to increase productivity and contain costs · Increase operational and managerial efficiencies and effectiveness · Increase visibility and community awareness of the Library IV.B. Rancho del Rev Branch Library The most important goal of the new branch library will be to achieve equity of service to the residents of the city, since 47,000 residents do not cunvntly have convenient branch library service. One of the very specific goals of the Library's Strategic Plan is to: · Maintain consistent level of service to the community through the implementation of the CVPL Facilities Master Plan. The objectives for this goal are the steps necessary to build Rancho del Rey branch during the five-year life of the strategic plan. The need for this facility has been validated and is documented in the 1987 and 1998 Library Facilities Master Plans, the 2001 branch needs assessment process, and in the 2001 Library Strategic Plan. As reported in the needs assessment telephone survey, convenience was the most important factor in deciding to use a particular library facility (45% of all respondents rated this as the number one factor). Basic literacy, the branch as a community center, current topics and titles, general reference and lifelong learning opportunities will be the key service responses for the Rancho del Rey Branch Library. These service responses, which come from the community developed Strategic Plan, were validated as appropriate branch specific service responses through the needs assessment process: · In a February 2001 report, the San Diego County Children and Families Commission indicated that them was a need for libraries to take a larger role in helping with literacy and language development of young children. (Basic Literacy) · Many participants in the Needs Assessment process requested the branch have a meeting room for community meetings, and meetings of clubs and organizations. (Community Center/Commons) · 86% of eastside respondents (84% citywide) to the telephone said that they wanted to use the library for pleasure reading (Current topics and titles) · 68% of eastside respondents to the Needs Assessment telephone survey reported that they were likely to visit a library for personal information needs (General Reference & Lifelong Learning) Since the system and branch service responses are basically the same (Rancho del Rey Branch will not focus on Local History), many of the branch's goals and objectives are the same as for the whole system. For example, one of the goals for both the system and the new branch is to: · Goal: Encourage young people to develop an interest in reading and learning through a variety of services for children and young adults Objectives: (1) Conduct 3 seasonal reading programs per year (2) Present weekly "lapsit" story hours for children and their parents (3) Design, promote, and present a reading/story hour course for parents and teachers Service indicators will also not necessarily be unique, but will reflect an increase over time due to the new branch. For example, service indictors for the above-mentioned goal include: Servicelndicator: # of seasonal reading programs FY00 actual FY01 actual FY 02 projected FY 06 oroiected 3 3 3 3 Service Indicator: # of story hours/lapsits presented FY00 actual FY01 actual FY 02 projected FY 06 projected N/A NA 242 350 Obviously, the number of seasonal reading programs (summer, winter and fall) conducted at each branch by the system will not increase. However, the number of lapsit story hours will increase system-wide by a large number due to the emphasis on early childhood literacy at the new Rancho del Rey branch. These service indicators are validated through the findings of the needs assessment, which found 72% of eastside residents judged programs for children as extremely or very important. Other examples of goals, objectives and/or service indicators that apply to both the branch and the system include: · Goal: Ensure that Library programs and services are accessible to the broadest Range of potential users Objectives: (1) Expand public service hours at South Chula Vista Branch Library in FY 2002-03 (2) Open Rancho del Rey Branch Library in FY 2005-06 Service Indicator: Total # of public service hours per year FY00 actual FY01 actual FY 03 ~roiected FY 06 proieeted 7,000 7,000 7,400 10,000 Service Indicator: Total circulation system-wide FYO0 actual FYO1 actual FY 02 vroiected 1,198,645 1,192,702 1,270,500 FY 06 projected 1,900,000 Service Indicator: Attendance in library system-wide FYO0 actual FY01 actual FY 02 projected FY 06 projected 965,407 1,209,986 1,290,000 2,100,000 Servicelndicator: # of reference questions system-wide FY00 actual FY01 actual FY 02 projected FY 06 projected 385,762 320,600 375,000 525,000 · Goal: Optimize volunteer Opportunities Objective: Annually maintain volunteer program at approximately 100 filled positions throughout the CVPL system Service Indicators: # of filled volunteer positions system-wide FY00 actual FY01 actual FY 02 projected FY 06 projected N/A 94 100 120 However, there are also some unique objectives that the CVPL system can only achieve by building the Rancho del Rey Branch Library. · Goal: Maintain an excellent and responsive materials collection Objective: Provide a minimum of 3 library items per capita. Service Indicator: # of items per capita FY00 actual FY01 actual FY 02 projected FY 06 projected 2.5 2.5 2.4 3.0 This goal/objective and service indicator is validated by the 2001 needs assessment telephone survey, in which 24% of eastside respondents rated "materials selection is good" as the number one reason they visit a library. · Goal: Provide opportunities for life-long learning Objective: Plan, design and open, in collaboration with the Chula Vista Elementary School District, the "Born to Read" FRC Service Indicators: # of people attending Family Literacy events system-wide FY00 actual FY01 actual FY 02 proiected FY 06 projected 417 694 735 2,100 As discussed below, the centerpiece of the Rancho del Rey Library will be the "Born to Read" Family Resoume Center. This joint-venture family literacy center (in collaboration with the Chula Vista Elementary School District) has been validated throughout the needs assessment process. The Elementary School District has long had programs and services for children 0-5 and their families living in western Chula Vista through its Early Intervention Services Division. However, it has been unable to yet do so in eastern Chula Vista. At focus group meetings, the participants said they wanted a place for children to come together and that the branch be a kid-size library, designed to be appropriate for the child's attention span. Additionally, 76% of respondents to the telephone survey who have children said they would bring them to programs at an eastern Chula Vista library. V. RANCHO DEL BRANCH LIBRARY PLAN OF SERVICE V.A. PROGRAMMING The specific services to be provided at the Rancho del Rey Branch Library fall squarely within the overall service responses outlined above. In the 2001 telephone survey, the respondents indicated that they used the Chula Vista Public Library in traditional ways. Pleasure reading, meeting educational or training related needs and meeting personal information needs, such as a hobby or personal finance, were the top reasons to visit or telephone the library. Further more, 84% of all respondents to the telephone survey indicated that they were likely to use library services. This figure was even higher (86%) when looking at residents east of 1-805. V.A.i. Joint Venture Agreement One of the hallmarks of the programming at the Rancho del Rey Branch Library will come as a result of a joint venture with the Chula Vista Elementary School District. The community expressed their desire for such collaboration during the preparation of Library Strategic Plan. One of the initiatives identified during that process was: How do we continue to develop add enhance collaborative efforts with other agencies and organizations to better integrate and connect services and programs to targeted populations? The resulting goal created in light of this strategic initiative was: · Continue to enter into partnerships to integrate library services into the Chula Vista The joint-venture agreement with the District, to provide a unique set of services at the Rancho del Rey Branch Library, is only one objective to meet this goal...but it is a very important one. The Cooperative Agreement between the City and the District outlines two areas for cooperative program development between the District and the Library for a period of 20 years. These programs, which focus on literacy, are: "Bom to Read" Family Resourge Center The "Bom to Read Family Resource Center", located at the Rancho del Rey Branch Library, will provide children (infancy through kindergarten) and their parents, caregivers, and teachers with an Early Education Specialist, library books and materials, and programming to reinforce early childhood literacy skills, language skills, and parenting skills....it will be a Family Literacy Center. (The programming of the "Bom to Read" Family Resource Center is discussed in detail beginning on page 19 of this report.) After-School Program The Educational Services Division of the Library Department designs and implements the STRETCH and DASH elementary after-school programs at 29 elementary schools within the District. This very popular program will be administered fi.om the Rancho del Rey Branch Library. (See page 27 of this report for further information.) Ail three of the elements of the joint-venture agreement are discussed in detail in their appropriate sections below. 14 V.A.ii. Rancho del Rev Branch Library as a Community Center During the various town hall and focus groups meetings, the most common refrain was the desire for the new branch to serve as a community center and focal point. Except for parks (with no community centers) and fire stations, there is no civic presence in the sprawling suburban stretch of northeast Chula Vista. The community is hungering for a sense of inclusion into a greater entity...the City of Chula Vista. As a result of this desire, many of the comments about needed services were related to creating a sense of place. These included: · Provide a place for the community and children to get together · Create a tree community center with a variety of simultaneous activities - such as homework help, community group meetings, discussion groups, etc. · Provide programs - children, author's concerts, movies, plays, discussions, poetry readings. · Provide outdoor reading areas · Provide meeting room space · Bridge cultures and contribute to cultural understanding · Provide a link to the history of Chula Vista In the 2001 telephone survey, 51% of the respondents residing east of 1-805 said that more art, musical, literature and other cultural exhibits or programs was either extremely or very important. As a comparison, 42% of the respondents living on the west side of the city said these programs were extremely or very important. The telephone survey also revealed that 14% of respondents visited the library to attend a meeting. The number is naturally lower on the eastside (12%) since there is no currently no library. Although the pementages are low, the actual numbers this equals is large when you consider that almost 1,210,000 people visited a Chula Vista branch library in FY 2000~01. Based upon the needs assessment discussed above, the creation of a "Commons" will be a major focus of the Rancho del Rey Branch Library. The physical structure itself will be designed to not just accommodate that need, but to encourage community building. For example: The branch library building is being designed with two public entrances...one from the parking lot and one from the street comer to encourage neighborhood pedestrian access. There will be one conference room that seats 16 and one meeting room that will seat 60-classroom style. They will both be accessible after normal library hours and will include all the appropriate and necessary technology. They will share a small kitchen.2 2 Some attendees at thc town hall and focus group meetings did express a desire for an auditorium. However, the Library already has a 152-seat auditorium at the Civic Center Branch Library that is used less frequently than other conference and multi-purpose rooms. 15 · The Library will encourage the community to use the library as their "living mom" by providing a mix of individual and group lounge seating in various areas throughout the library. There will be a caf~ space, seating 16 at 4 tables to encourage patrons to linger with a book or magazine over a cup of coffee. There will be over 250 readers and lounge seats for the community to use. And there will be patios with comfortable chairs to take advantage of the beautiful southern California climate and soft breezes fi.om the Ocean that reach the Rancho del Rey area through the natural canyon that sits by the library. · As they do at the Civic Center and South Chula Vista Branch Libraries, the Friends of the Library will operate a "book store." This 245 square foot area provides the Friends with a constant revenue source, but it also is a community gathering space. Visitors come regularly to see what new stock has arrived, look for those special bargains, and meet their friends. · The building will accommodate a display featuring the history of Chula Vista in order to meet the community's need for historical context. The exact location and design of this display has not yet been determined, but it could range fi.om tiles marking historic milestones to a photomontage of Chula Vista through the ages. · Rancho del Rey Branch Library will include spaces for public art. Besides the permanent public pieces (still yet to be determined) there will be a changing gallery dedicated to the art of local school children. Of course, it is how these spaces are used that will guarantee that the library becomes the heart of the community. In order to ensure that the branch reaches its maximum potential, the Chula Vista Public Library will continue to use a model developed over the past few years. The Library now has a Community Relations Manager who is responsible for overall program and event design. The various Library Branch Managers, Outreach, and Digital Librarians assist her in this endeavor. Together they plan programs, classes, displays and special events that are of interest to the local community. In FY 1999-2000, the library system produced 169 adult programs, which attracted 4,373 attendees as indicated in the annual report to the State Library. This effort has produced wonderful range of programming. For example, the South Chula Vista Branch Library regularly hosts health fairs, English as a Second Language classes, citizenship programs, computer classes, author talks, community receptions, and of course many children's events. The library is even a polling place. The branch is also the site of numerous cultural programs such as the recent appearance by the Baja Orchestra and an annual classical guitar festival held in conjunction with Centro de Cultural de Tijuana. Each October the branch is the focal point of the annual Dia de la Raza parade where hundreds of students, from three nearby elementary schools, march to the library with marching bands and TV cameras to celebrate ethnic diversity and international friendship. The Library's art gallery is host to monthly art exhibits from both professional and amateur artists. It also has been the site of numerous special displays such an annual "Dia de la Muertos" exhibit and a San Diego/Tijuana InSite art installation. Because of all these activities, the South Chula Vista Branch Library is now widely seen as the neighborhood's central gathering point for the Otay, Castle Park and Montgomery communities in southern Chula Vista. 16 With the spaces being designed at Rancho del Rey Library, coupled with the expressed desire of the community for a civic gathering place, there is no doubt that the Chula Vista Public Library will be able to duplicate these community building efforts at the new northeast side branch. Much of the adult programming planned for the branch will be similar to that outlined above. However, it will also include a special emphasis on hands-on computer classes that will be conducted at least once a month and feature topics such as "How to Use Your CV Links Online Catalog", "Build Your Own Website", "Creating a PowerPoint Presentation" and "Introduction to Office Software Applications". These services will ensure that the Library meets the Commons/Community Center and Lifelong Learning service response identified in the Library's Strategic Plan. The considerable children's and young adult programming discussed below will also help make the Rancho del Rey Branch Library into a true community center. V.A.iii. Children Services Chula Vista is not unique in that it is a community of families. As reported in the Census 2000, Chula Vista had a population of 173,556. Some 75.5% of the households were families and 46.5% of the households had children under the age of 18. In the census tracks covering the northeast (Rancho del Rey Branch Library) service area, the population was 47,134. Some 29.2% or 13,763 individuals were under the age of 18. Within that population group, some 7,410 are between the ages of 0 and 9. This represents 15.7% of the service area population. That percentage is almost equal to that found statewide (15.3%), is less than the city as a whole (16.2%), but more than the county (14.7%) and U.S. (14.1%) pementages. There are nine public elementary schools, two middle schools and one high school in the service area. In March 2001, there were 5,798 children enrolled in the nine elementary schools. There are also a number of large day care centers in the immediate area. During the town hall and community forums, conducted as part of the branch library's needs assessment, the public unanimously requested high quality, consistent, considerable programming and services for children and young adults. In the 2001 telephone survey, 72% of the respondents who reside east of 1-805 (compared to 73% citywide) judged programs for children such as homework help and book clubs, and sponsoring a reading skills program for children, as extremely important or very important. Comments received at the town hall forums and focus groups indicated considerable support for youth services programming. The community said they wanted Rancho del Rey Library to: · Provide a place for children to come together · Provide a substantial children's room space and computers for children to use · Be a kid-sized library, designed to be appropriate for the child's attention span · Provide reading skills improvement and reading encouragement for children Currently the City is conducting a public outreach campaign to assist with the update of the General Plan. At a spring 2002 community fair, one of the primary themes from a discussion group on community facilities was the need for more places where children could gather and come together safely - which is exactly what a public library provides. Children's services and programming are very popular throughout the Chula Vista Public Library. Cimulation of the juvenile collection accounted for 34% of total cimulation in FY 2000-01. In that same fiscal year, the library system offered over 550 children's programs, which attracted over 23,000 attendees. The Library's Summer Reading Program is one of the most popular in San'Diego County. In 2000, some 5,707 children registered for the program, more than double any comparable size community in the county. It is an even more remarkable figure when compared to the 19,750 children who registered for Summer Reading with the San Diego Public Library - a city library serving over 1.1 million people! The Children's programming at the Rancho del Rey Library will continue to build on this success. The primary services in the Children's Room will be the provision of library books and media and programming for children through age 12. The staffwill give guidance in the choice of books and AV materials, present story hours, baby times and other special programming. There will be activities for the creation and display of children's artwork and crafts. The staff's primary job is to introduce children to the pleasures of reading and listening to stories and to assist students with homework assignments. Four monthly children's programs will include two by performers and two craft programs. Mother/Daughter book discussion groups will take place on a monthly basis along with an evening Family Storytelling Program. The LEAP (Library Education Afterschool Program) reading-tutoring program will hold weekly classes in a meeting room for children in grades 3 - 6. Other reading programs will include the fall, spring and summer reading programs. Bibliographies and pathfinders, designed to tie into the reading program themes and other special programs and events, will be developed and posted online. Assistance with homework assignments is and will be a major service of the Children's Room. The nine public elementary schools in the service area have relatively small libraries, with no after-school or weekend hours. In fact, the near-by Casillas Elementary School Library is only open three days a week from 8:10 am to 2:40 pm. Only three of the libraries are staffed part-time by librarians. The result will be that most elementary school students will turn to the new branch library for help with finding materials relevant to their homework assignments. Since the branch library will be adjacent to a fire station and a fire-training tower, the Fire Department has expressed interest in teaching fire safety to children. Them is also the possibility of incorporating fire fighters and fire fighting apparatus into the theme of the Children's Room itself. From their home base at Rancho del Rey Branch Library, an Outreach Librarian will visit each of the 9 elementary schools in the service area three (3) times a year. The first time would be to give an in-service training to teachers on how to use the OPAC, the second visit 18 would be in the fall to train students to do the same and to tell them about upcoming events at RDR, and the third visit would be to let students know about the summer reading program. A detailed discussion of programming provided to children, from infancy to kindergarten, is discussed below in the "Born to Read" Family Resource Center section of this paper. The services provided in the Children's Room ensures that the Library meets the Basic Literacy, Current Topics and Titles and General Information services responses identified in the Library's Strategic Plan. V.A.iv. "Born to Read" Family Resource Center Of all of the aspects of the Rancho Del Rey Branch Library, the "Bom To Read" Family Resource Center (FRC) is the centerpiece, the galvanizing force behind the joint-venture collaboration with the Chula Vista Elementary School District. In our shared vision, the branch library will serve as the community's hub for healthy child and family development, parent and community involvement, and life-long literacy beginning at birth. The "Born To Read" FRC is designed to be a center for early childhood information, parent education, emergent literacy, and family support. A child's earliest experiences with language and literacy begin in the first months of life, and form a critical foundation for later reading success. Indeed, the degree and scope of future social, linguistic and creative skills are enormously dependent on a child's experiences in the first years of life. Literacy begins at home, but where do parents turn to learn how to become their "child's first teacher"? Parents and other caregivers are hungry for substantive information and guidance on how they can provide children opportunities to flourish. The result will be a unique family literacy center. The Education Services Manager and an Early Childhood Education Specialist will implement the plan of service for the "Born to Read" FRC. Working closely with parents, educators, social service and health care providers, as well as other professionals, they will provide a centralized place to turn for information and support. Central to the concept is the creation of a hands-on learning environment, available during all open hours, devoted to very young children, their parents and caregivers, where children are enticed to play and to explore and where positive adult-child interactions may be modeled, observed and practiced. The space will be filled with picture books, puzzles, learning toys, Lego tables, drawing tables, blocks, and a puppet playhouse, to name just a few. A welcoming, family-centered space will be created where parents can play and interact with children, talk to one another, or relax in comfortable chairs, surrounded by a wealth of books, magazines and brochures of interest. The FRC also provides designated space for a variety of special, ongoing, and annual programs and workshops, which will be offered at times convenient for families. Library staff and staff from our collaborative partner agencies will serve as facilitators, models, mentors, and coaches for parents, ensuring they attain the resources, practical skills, and tools they need to lay a child's foundation for reading and lifelong learning skills. 19 While many adults know how to provide and how to "milk" a language-rich learning environment for young children, research indicates that many do not. According to the 1991 Carnegie Foundation Report, Ready To Learn, A Mandate for the Nation, 35% of children in the United States enter public schools with such inadequate skills and motivation levels that they are at substantial risk for early academic difficulties. That same year, the Carnegie Foundation conducted a National Survey of Kindergarten Teachers, and found that deficiencies in language were named most o~en as the eanse of children entering kindergarten not prepared for school. The problem appears to be more acute in California. According to the National Assessment of Educational Progress (NAEP), only 20% of fourth graders in California were reading at or above the proficient level in 1998, compared with 29% nationwide. The California Standards Test, given for the first time in spring 2001, indicates that, while the trend is at least moving in the fight direction, (33% of fourth graders statewide scored at or above the proficient level), the numbers of struggling readers are still cause for great concern. In 1997, Congress called upon the National Institute of Child Health and Human Development to identify research-based practical findings on how children learn to read. Their landmark report, issued in April 2000, indicated that the most effective way to teach children to read included teaching them to manipulate the sounds in words, explicitly teaching the phonetic principle, and having them read aloud with guidance. However, another message from the research is clear: parents, grandparents, and other caregivers, - everyone who is important in the child's life - must be a child's "reading teacher" long before the child enters a formal classroom. New brain research shows that reading is part of a complex continuum of knowledge, skills and awareness that clearly begins in the cradle. Children need to arrive at the school's doorstep with good language skills and vocabulary, an awareness of the sounds of language, an appreciation of books and stories, a basic understanding of the conventions of print, and an eagerness to learn, or else they are "behind even before they begin" the acquisition of formal literacy skills. Without doubt, children of poverty are at greatest risk, more than twice as likely to have serious trouble reading, but studies have also shown that at least 20% of middle class children have reading disabilities, and that early intervention could save many of them from a lifetime of playing catch-up. In February 2001, the San Diego County Children and Families Commission (Prop 10) released the results of a literacy and language development needs assessment for children ages 0 to 5. The recommendations are based in statistical findings and anecdotal data gathered from surveys and focus groups conducted throughout the County. Interestingly, the parents who completed the surveys were predominantly middle income. Among the key findings, the report clearly states, '~l'he library needs to take a larger role in helping with language development of young children. Balanced programs [that] introduce multiple opportunities for different kinds of instructional methods are essential." The report goes on to further state: Nearly half the parents surveyed said they are not getting the information they need about the literacy and language development of their young children. 20 Childcare providers expressed deep concern that too much responsibility for language acquisition in young children is being placed upon them, and that parents need opportunities to become consistently involved with their child's literacy and language development. They suggest partnering with libraries to help educate parents. They also stress the need for good information to be available to caregivers who are not necessarily trained in literacy. They indicated that they felt "unwelcome" with young children at libraries, and said they would like to "coordinate with libraries to plan visits, share resources, exchange support information," etc. The need for libraries to incorporate children 0-5 into their programs was repeatedly expressed. This requires making a physical space for young children in the library itself that allows them to behave in ways that are age-appropriate. Programs, especially those that instruct parents in language development for children 0-5, need to be offered on a year-round basis at times convenient for parents. Public health nurses reported little, if any, partnering with libraries. They expressed the desire to work with library staff to provide parents with literacy and school readiness assessments, and to help library staff make health care referrals, especially for children exhibiting language development delays. Great strides have been made in Chula Vista over the past several years to address pressing social and educational needs. Coordinated efforts to serve the children and families most in need, i.e. those residing in the predominantly low income, minority neighborhoods on the city's west side, have been spearheaded by a remarkable collaborative, the Chula Vista Coordinating Council (CVCC). There are over 150 collaborative members representing schools, social and health service providers, community leaders, and state and local government entities. The strength of the collaborative has been its ability to integrate services and resources under one roof in one-stop community service centers, known as Family Resource Centers (FRC's), located on the campuses of five west-side elementary schools. Services include case management, parenting classes, counseling, support groups, tutoring, crisis intervention, adult education and ESL classes, and additional referrals. Additionally, the Chula Vista Elementary School District has identified school readiness as a top priority. As a result, the District, in collaboration with the CVCC, sought and has just received a multi-yea,r, multi-phase grant to provide a host of intergenerational parenting, family literacy and emergent literacy programs targeting families with children ages 0-5 from eight of the District's poorest, west-side school communities. The "Bom to Read" Family Resource Center at the Rancho del Rey Branch Library is clearly in line with District- and community-identified priorities, and will serve to complement the existing FRC's by providing equitable services to the families and school communities on the eastside of Chula Vista. In an effort to further strengthen this initiative, the Library plans to .join the small but growing network of libraries nationwide that believe that literacy begins at birth, and that 21 libraries can help build healthy communities by nourishing healthy families. The network referred to is called the Family Place Project, a project of the Libraries for the Future organization, a national initiative to support life-long learning and community development. Currently, Family Place programs exist at approximately 100 libraries across the United States. The Rancho del Rey Branch Library "Born to Read" FRC will be the first and only Family Place Project in all of Southern California. The hallmark of Family Place libraries is a unique combination of (1) Specialized family literacy programming, (2) A special collection of books, toys and other materials, and (3) Emphasis on professional development and training, including links with community partners. Some of the examples of unique ongoing and year-round programs envisioned include: Parent/Child Workshop - This is the core program of the Family Place library model. It is a 5-week series that brings together in an informal, interactive setting, toddlers and their parents/caregivers with professionals from local agencies such as hospitals, speech clinics, universities and public schools. The sessions are facilitated by library staff that will feature toys, books and a hands-on art activity. "Born to Read" Series - A series of year-long, ongoing, interactive, "drop-in" programs for adults and children will be developed by the staff, based on research and best practices, and guided by the Public Library Association's Early Childhood Initiative. Programs will be designed to model and instill in caregivers the behaviors and practices that will lead to their child's success in learning and reading. These will incorporate books, stories, music, finger plays, puppets, dance, games, writing, art projects, etc. The series will focus on modeling effective methods of engaging children's curiosity, developing their vocabulary, language and communication skills, and ultimately, their awareness of language sounds, story and print structure. It will be three-tiered, based on the developmental needs of children: Baby Time - designed for pre-talkers, children ages birth to 2 Talkin' Tots - designed for children ages 2-3 years old Rock, Rhyme, and Read - designed for pre-readers, children ages 4-5 years old, with a strong emphasis on developing phonemic awareness skills Additional Special Programs will include, but not be limited to the following: · Tot Sock Hops - caregivers and tots explore music, rhythm and movement · Mother Goose Asks "Why?" - a 4-week hands-on program developed by the Vermont Center for the Book to encourage parent-child exploration of math and science concepts through quality picture books and science experiments · Dads Dig Reading - special programs just for dads and their children · Parenting Classes - 10-week adults only series, offered by the Chula Vista Adult School · Parenting Seminars - specialists offer one-time guest lectures on a variety of special topics · Do It Yourself (Make it and Take it) Workshops - parents and early education professionals will create homemade learning games and materials · Summer Bedtime Story Hours - designed to attract the entire family · Baby Boosters Read to Me Club - Prizes and incentives for parents and primary caregivers who read to babies birth through 2 · New Parents Discussion Group -facilitated by a public health nurse · Children's Literature Seminars - for parents and professionals who work with young children Additionally, them will be programs taken out into the Rancho del Rey Branch Library service area. Working closely with the library's Volunteer Coordinator, member agencies of the Chula Vista Coordinating Council and Southwestern College's Child Development Department, the plan is to train volunteers and interns to conduct Story-times on Wheels, special programs offered on-site at childcare centers. The Rancho del Rey Branch Library will also be the focal point for offering training opportunities to the staff of the hundreds of licensed and unlicensed childcare centers in Chula Vista. In addition, the Library plans to create a number of "Library Outposts", mini-stations in the waiting rooms and lobbies of local clinics, government offices etc., stocked with children's books and informational flyers promoting "Born to Read" programs and other events of interest to parents. A cadre of volunteers will be sent out to replace and exchange the collections on a regular basis. Finally, the "Bom to Read" FRC will also utilize a wireless computer lab with 20 laptop computers to replicate the popular LINK (Library Instructional Network for Kids) after school tutoring program conducted at other branches in the system. Two aftemoon's a week, library staff will set up the lab in the multipurpose room to offer lSt-6th grade children the opportunity to develop English vocabulary, comprehension, phonics, writing and spelling skills. Children's skill levels and needs will be assessed both before and after the program through a combination of a 1:1 assessment developed by Literacy Team Center staff, and via written communication with their classroom teachers. A 10-week individualized program will be outlined for each child, including incentives for reaching "milestones." Volunteers will also be recruited and trained to assist children in the lab. The lab has the capacity to serve approximately 150 children per year. The "Bom to Read" Family Resource Center ensures that the library system and the Rancho del Rey Branch Library meets the Basic Literacy service response identified in the Library's Strategic Plan. In order to accomplish this ambitious goal, the City and the Chula Vista Elementary School District have entered into a Joint Cooperative Agreement. The City will administer the "Bom to Read" FRC and will hire the Early Education Specialist to manage the Center. The District will assist with the hiring of the Early Education Specialist, and will provide training and technical assistance, provide content area specialists to consult on relevant issues, provide curriculum to be utilized by the FRC staff, help identify grant opportunities and publicize and disseminate promotional materials about the FRC. V.A.v. Young Adult Services The 2000 census shows that there are 13,915 individuals between the ages of 10 and 14 residing in Chula Vista. In the Rancho del Rey Branch Library service area this population group numbers 4,012 and makes up 8.5% of the total population of 47,134. This is a higher percentage than the city as a whole (8%), San Diego County (7.1%), California (7.6%) and the nation (7.3%). As of October 2000, the Sweetwater Union High School District reported that there were 2,539 students enrolled in the two middle schools and 2,694 students at the one high school in the Rancho del Rey Branch Library service area. There is, obviously, a large population base upon which to market young adult services and programming in the Rancho del Rey Branch Library service area. The desire for a special place and services for young adults came through loud and clear in the tom hall forums and focus groups. Library staff, adult users, and the Library's Teen Council all said; "Provide a separate young adult space." Of coume, the teens were more specific, saying that the new library should offer: · Casual comfortable reading rooms · Good outside programming · Study moms · TV to show current news and events · Provide "live" music ~ · More CDs of "our" music · Places for group study, which is now required in many classes · Provide magazines just for teens The primary function of the Young Adult Room will be to provide young people (ages 13 to 16) with a space in the library that they can call their own. There will be a materials collection that meets the needs of young adults and special study areas that are conducive to group study, allowing teens to exchange ideas in a loud conversational manner. Teens will also have access to compact disc players, a wall mounted TV, and of course, computers, which will be adjacent to the area. Nearby will be three (3) group study rooms seating up to six people. The teen space will feature a collection that will include fiction very popular to young readers, including series such as "Buffv the Vampire Slaver" and "Dawson Creek". There will also be plenty of graphic novels, science fiction and fantasy and magazines such as Skateboarder, YM, and Teen Peot~le. The space will also have a small collection of books on topics such as how to get into the college of your choice, how to get scholarships, etc. The Library's established Teen Council will determine services to Young Adults at the Rancho del Rey Branch Library. They will continue to meet monthly to give staff input into what types of programs they want. Recent examples of such programming include a battle of the bands, a student film festival, a program on alternatives to college and the "Feed and Read" book discussion group (good books and pizza). 24 Since the Rancho del Rey Branch Library will be located within a block of the new YMCA Teen Center, the Library intends to explore joint programming with that agency. The Y expects their new center to provide a safe environment where youth will enjoy the opportunity to participate in a wide variety of activities and programs, including recreation, health and fitness, leadership development, delinquency prevention, counseling, job preparedness, literacy, computer training 'and "drop-in" activities. The Library hopes to develop a formal MOU with the YMCA to collaborate on such programming as mentoring, conflict resolution, and open book reading. ~.to name just a few ideas. As discussed above, under Children's services, the adjacent City fire station and training tower also provides an opportunity for fire safety training and other programming with the Fire Department. The Library intends to expand its after school student literacy program (LEAP) to include grades 7 - 8 at this branch. These tutoring sessions will be held in a separate meeting room on a weekly basis. Teens interested in completing community service hours would be available to assist in the children's room With Internet and computer assistance or with peer tutoring. There will be a monthly series of programs on college and careers and prep classes for the SAT and AP exams and how to write the college essay. Teachers from the Sweetwater Union High School District and professors from Southwestern College will present these classes. The services provide in the Young Adult Room will ensure that the Library meets the Current Topics and Titles and Commons/Community Center service responses identified in the Library's Strategic Plan. V.A. vi. Information & Reader's Services Two of the Chula Vista Public Library's primary service responses are commitments to General Reference and Lifelong Learning,. In the 2001 telephone survey, 66% of all respondents indicated that they visit a library to meet personal information needs, while 71% of respondents visit a library to meet educational or training related needs. Only 46% of the respondents visit a library to meet work-related informational needs. Residents of eastern Chula Vista are slightly more likely to visit a library for personal information needs (68%) and for work-related informational needs (49%). Some 71% ofeastside residents said that they came to the library for educational or training related needs. Additionally, participants at the various town hall and community forums indicated that they are currently using the Library for reference and research. Furthermore, they want the Library to continue offering these services. The community's desire to see the library offer reference and informational services is born out by current usage figures. The 2000 Public Library Data Service survey reports that Chula Vista conducted 375,069 reference transactions or 2.2 reference transactions per capita. This is well above the upper quartile figure for libraries in the 100,000 to 249,000- population range of 1.3 reference transactions per capita. The 375,069 total is also above the 25 median of 347,906 total reference transactions for libraries in Chula Vista's population group. As reported in the accompanying Needs Assessment document, the Chula Vista Public Library's FY 1999-2000 reference activity per open hour (58.9) ranked second of the 23 California city libraries in this population group. These are especially impressive figures when one realizes that one quarter of the city (the northeast quadrant to be served by the Rancho del Rey Library) does not even have a public library. Clearly, the community wants and expects that there will be both reference and information services at the new branch. The primary fimction of the information and reference area will be to provide the public with access to well trained staff, reference books, indexes, the Interact and various other electronic databases. A unique feature of this branch will be a central Customer Service Desk, which will be able to able to provide help with almost any kind of question 'or need, ranging from how to use the online catalog, how to conduct in- depth research, how to sign up for a computer, to assistance with applying for a library card. A small (222 volume) ready reference collection will be at hand, along with considerable online resources to ensure that staff can appropriately assist the public. The desk will be user-friendly, and provide a one-stop shop for information and assistance. It will be in a highly visible location and fight in the middle of the traffic flow. In fact, it is the fulcrum on which all public service turns. The location of this desk will ensure that questions from adults, children and young adults can all be fielded. It will be designed so as to be approachable for all ages and those with disabilities. Customer Service Representatives will also be on the floor to assist the public as used to be done in retail. These easily identifiable staff members will be roving in the Children's, Reference/Intemet, and adult stacks area. They will not be sitting at a desk. Therefore, instead of waiting for the public to approach them, the 'rovers" will be responsible for initiating a public service contact. Such contacts might include offering assistance to patrons on how to use the catalog, helping them to find a particular book or subject area, answering a detailed reference, assisting a patron with scheduling time on a computer or setting up an email account. The library system has partially instituted the "rover" approach to public service at its Civic Center Branch Library with much success and plans to implement it system-wide over the next two years. Information and reference help will also be available via the telephone, e-email and "24/7 Online Reference" services. Please see the Technology section of this report for more details. V.A.vii. Circulation Services The 2001 needs assessment telephone survey found that 78% of all respondents and 72% of eastside residents come to the library is for pleasure reading. This figure, coupled with the high usage of the library for personal information needs (66% citywide, 68% eastside) and for educational or training needs (71% citywide and eastside) results in a big circulation for the Chula Vista Public Library. As reported in the accompanying Needs Assessment document, CVPL's FY 1999-2000 circulation per hour was the fifth highest hourly circulation of all 23 California city libraries in this population group. And in FY 2001-02, cimulation has increased dramatically, trending towards a 6% increase system-wide and a whopping 30% increase at the EastLake Branch Library. There is every expectation that cimulation at the Rancho del Rey Branch Library will be very strong. Therefore, the cimulation services at the facility need to be carefully planned. It starts in the parking lot with 3 drive-up book drops. Although this seems obvious, they will be the first for the library system. Inside, circulation will be mostly self-service, based upon models used at the Richmond, British Columbia and Farmington Hills, Michigan public libraries. The collection will be tagged with Radio Frequency Identification and check-out will occur at five state-of-the art self-checkout stations. Although the expectation is that 85% of all circulation will go through these self-service units, there will be a small Customer Service Desk adjacent to self- checkout units to assist the public with exceptions. Check-in will also be self-service with an automated self-check-in return system. The various vendors of these systems are currently working with the Chula Vista Public Library to configure an appropriate bin system for returns. Books and other library materials put on hold will be available at an on-the-floor pick-up point by the patron. No more waiting in line for to get a reserved book. The Library also intends to implement an optional, cost recovery based, program where reserves are mailed to the client's home or office before Rancho del Rey Library opens. V.A.viii. Administration of the Educational Services Division's Programs The Chula Vista Public Library's collaborative commitments with the Chula Vista Elementary School District date back as many as ten years, and in many respects the Rancho del Rey Branch Library is a natural extension of this tested and proven partnership. Since 1998, the provision of after-school programming at the City's elementary schools has been under the umbrella of the Library. At that time, the District approached the Library, which, through its Literacy Center had long been a partner with them in providing federally funded Even Start Family Literacy services. Based on our successful history of cooperation, the District and the Library took a bold step and committed ourselves to a partnership, which has been renewed every year since, for joint funding and governance of the educational after- school programs. These programs (known as STRETCH and DASH) focus on literacy, the arts, and enrichment activities, and are seen by the City Council and the School District as a direct public service of the Library, just as they see the Literacy Center as a direct public library service. In 1998, the Library's Literacy Coordinator was promoted to Educational Services Manager and took on the job of revamping what had been a lackluster, unstructured, poorly supervised, and, by all accounts, failing after-school recreation program. By February 1999, the outcome was the "Safe Time for Recreation, Enrichment and Tutoring for Children" (STRETCH) program. It is an extended school-day program for children in Title I schools who need more opportunities to develop their language and literacy skills. The goal is to create a dynamic, safe, and stimulating after-school environment that gives children the boost they need to succeed academically and socially. The program has a detailed, multi-faceted, highly structured daily curriculum, which inchdcs group read-alouds, drama games, a homework center, novel reading, hands-on math games and art projects. hi October 1999, the DASH (Dynamic After School Hours) program was added to the after- school line-up. DASH is conducted at the non-Title-1 schools and, though less literacy oriented than STRETCH, has strong academic and enrichment components. Both programs are conducted by well-trained staff, and provide innovative, quality programming. Regular involvement by school personnel, in decisions ranging from hiring to curriculum to program evaluation, is a hallmark of STRETCH and DASH. What began as a modest program in six elementary schools in 1999 has grown exponentially to include a staff of over 80 part-time employees and three full-time supervisors, who provide several hours of programming and activities each and every school day to over 1,200 elementary school children at 29 elementary school sites across the City. The City and District staffs are extremely happy with the results. Both the School Board and City Council, which jointly fund this million-dollar program, are thrilled, and say so each year when they fund the program. Students and their parents are also very pleased. In the 2002 survey of STRETCH and DASH parents and students, 89% of the parents who responded indicated that they strongly valued the programs, while 77% strongly agreed that the STRETCH and DASH staffprovided a high quality program. 96% of the parents also agreed that the programs had helped their children do better in school or helped them to develop in positive ways. Students also like the programs, with 80% of the student respondents agreeing that STRETCH or DASH was "a cool place to go after school." The Library's Educational Services Division administers STRETCH and DASH as well as the Literacy Center and the Even Start Family Literacy Program. The Educational Services Manager's office, as well as the office space for the after-school program supervisors, is currently located at the South Chula Vista Branch Library. When the Rancho del Rey Branch Library opens, the operations of the "Bom to Read" Family Resource Center will also fail under the direct supervision of the Educational Services Manager. As a result, this manager's office will be relocated to the Rancho del Rey Branch Library. Additionally, the offices and support spaces for the three supervisors of the STRETCH and DASH programs will also be located at the new branch library. This move is critical, since the after-school program staff has long since outgrown the makeshift space they currently occupy at South Chula Vista. The new branch will also provide sorely needed and appropriately designed space for receiving, unpacking, sorting, and organizing large shipments of equipment, supplies and materials, which are essential to providing multifaceted, creative programming to such a large number of children daily, at sites all across the City. Finally, as STRETCH and DASH have developed and evolved, the program management staffhas become a part of the children's program planning team at the system level. They participate in planning and presenting special events such as the Summer Reading Program Carnival, the ABC Fair for young readers, and Family Literacy and Even Start programming. The after-school programs are an integral part of the public services provided by the Chula Vista Public Library as they meet the Lifelong Learning and Basic Literacy library service responses identified in the Strategic Plan. V.B. COMMIJNITY SERVICES/PARTNERSHIPS/SPECIAL SERVICES Developing strong community partnerships will be essential if the Rancho del Rey Branch Library programming, as discussed above, is to succeed. The Strategic Plan Steering Committee saw the development of such collaborations as one of the most important initiatives in the plan. As a result, the Library now has a number of goals directly related to this initiative: · Continue to enter into partnerships to integrate library services into the Chula Vista community · Consider collaborative opportunities to improve or meet library goals and contain costs, if possible Of course, the Chula Vista Public Library has a long history of partnerships within the community. The Library's award-winning Literacy Team Center was established in 1987, under a grant from the Califomia State Library, in collaboration with the Chula Vista Adult School and the Altrusa Club of Chula Vista. The EastLake Branch Library is a joint-use library on the campus of the EastLake High School (operated by the Sweetwater Union High School District) and has been open to both students and the public since 1993. As discussed earlier, the Library partnered with the Chula Vista Elementary School District in 1998 to produce a radically different and very successful after-school program at elementary school sites. In 1999, the Library applied and was awarded a 4-year Even Start grant, from the State Department of Education, in collaboration with the Elementary School District. The Library serves as the fiscal agent for that large grant. The "Bom to Read" Family Resource Center joint-venture endeavor at the Rancho del Rey Branch Library is another example of the types of collaboration envisioned by the Strategic Plan Steering Committee. Key to the realization of the "Bom to Read" Family Resource Centers enormous potential is comprehensive and ongoing staff development, and the tapping of resources and expertise within the community. As members of the National Family Place Project, library staff will automatically take part in a 3-day Family Place Training Institute, and will continue to benefit from the technical assistance and networking opportunities provided through the Project. Even more importantly, however, thanks to our fortifying relationship with the Chula Vista Elementary School District and with the Chula Vista Coordinating Council, the Library will capitalize upon a wealth of local staff development opportunities. The abundance of training offered to the staff, outreach workers and volunteers of the existing five Family Resource Centers will naturally be extended to include the sixth-- the Rancho del Rey Branch Library "Born to Read" FRC. The community resources that have already been compiled at these 'one-stop' service centers will make replication at a new center far easier. Local expertise in everything fi-om child abuse prevention, community policing, child nutrition, dental and vision care, nutrition, drug rehabilitation services, adult education, to name only a small few, are already 'at the table' of the Chula Vista Coordinating Council. In addition, the District's longstanding cooperative relationship with Southwestern College's Child Development Department, which offers an Associate's Degree in Child Development as well as the California Child Development Credential, ensures a viable source of well- trained student interns needing valuable work experience. A special program to place Southwestem College child development majors in a variety of intem positions, both at the "Born to Read" FRC and in various outreach programs, particularly those targeting child care centers, will be developed. Training, materials and programming being developed for the District's new long-term School Readiness Project will be available to library staff, including training on the District's kindergarten standards and the California Department of Education's Pre-kindergarten Learning and Development Guidelines. Opportunities abound to share training, expertise, as well as extensive programming ideas from both the library's Families For Literacy (FFL) Program and the joint Library-District Even Start Family Literacy project, which have been in existence for over eight years. Administratively, the Born to Read FRC, Literacy Team Center, FFL Program, Even Start Family Literacy project, as well as school age after school literacy tutoring (LEAP Into Reading) and after school literacy, arts, and recreation programs (STRETCH and DASH) all fall within the library's Educational Services Division. In addition to the joint-venture collaboration discussed above, the Library intends to partner with other community agencies at the Rancho del Rey Branch Library. The two most obvious partnerships will be with the Chula Vista Fire Department and the South Bay YMCA, as both agencies are located next door to the new Library. The Fire Department has expressed considerable interest in teaching fire safety to children and young adults and they also have offered to share their meeting room space with the Library. Young adult services will be greatly improved by collaborating with the new Teen Center at the YMCA. It is expected that the Library and the Y will co-produce many exciting programs. The pastor of the Methodist Church located across the street from the library site has also expressed interest in partnering. The church may also prove to be an excellent source of volunteers. Finally, as a member of the Chula Vista Coordinating Council and Chula Vista Human Services Council, the Library expects that new and unexpected opportunities for parmership will arise in the coming years. Such surprises have already occurred while working on the development of the "Born to Read" Family Resource Center. As a result of this effort, the 30 Library has been invited to participate in two grants, in collaboration with the Chula Vista Elementary School District and the Chula Vista Coordinating Council, for Prop 10 monies. V.C. PUBLIC SERVICE HOURS In the 2001 needs assessment telephone survey, only 3% of the respondents indicated that convenient service hours were the most important factor in using a particular facility. However, 5% of the respondents fxom east of 1-805 rated this factor as the most important. The issue of hours also came up during the various town hall and focus group meetings. Comments included: · Hours should be accessible a wide variety of times · Be open later- to 10pm · Be open nights and weekends when the residents are off work Finally, because the South Chula Vista Branch Library is currently open only 56 hours per week while the Civic Center Branch Library is open 64, the Library receives many informal comments from the public about the need for longer hours at that branch specifically. As a result, the Library is committed to providing the largest number of public service hours possible at the Rancho del Rey Branch Library within budgetary constraints. The Library intends the branch to be open 63 public service hours per week. Their hours will be: · Monday, Tuesday, Thursday 10 am to 8 pm · Wednesday 7 am to 10 pm · Friday 10 am to 6 pm · Saturday 10 am to 4,pm · Sunday 1 pm to 5 pm This schedule will ensure that the Library can provide a morning schedule for school visits and "Born to Read" Family Resource Center activities, an evening and weekend schedule allowing patrons to visit outside of the normal work and school hours, and a special extended schedule on Wednesdays for morning commuters and night owls. Opening at 7am on Wednesday should also appeal to those using the gym at the YMCA across the street, which opens at 4:30 am. These hours will bring the total the number of public library service hours provided by the Chula Vista Public Library per week to 207 - well over 10,000 public service hours per year. This represents a 44% increase in availability of public library service to the community over the current 7400 hours per year. V.D. STAFF & VOLUNTEERS The Chula Vista Public Library is well known for its excellent staff. A sampling of comments from the Library's most recent (2002) Materials Availability Survey support that premise: · Excellence service · The library and staff are great. My 4-year-old grandson and I have found them very helpful · I love the story time and the storytellers · Telephone courtesy is great · I would like to comment that this library is very friendly and that is why I like to come here · Excellent staff Additionally, some 98% of respondents to the 2001 needs assessment telephone survey agreed, "Library staff does a good job in answering my questions." The library system also has a vibrant volunteer program. Approximately 150 individuals are registered as volunteers working in literacy, technical service, cimulation and other customer service areas. The Library's Volunteer Coordinator works closely with the City's Volunteer Coordinator on the establishment of job descriptions and job performance standards, as well as on recruitment and retention issues. Volunteers are registered with the City and fingerprinted for liability and personal safety reasons. Like most libraries in the United States, the Chula Vista Public Library has experienced the impact of the closing of library schools, the re-direction of traditional library school programs to information technology, and the small number of minority (or multi-lingual) students entering into the profession. At times, professional level jobs within the Chula Vista Public Library go begging for months at a time, due to a lack of qualified candidates, even though library salaries are competitive with other California municipalities. As a result of these factors, the library system has been working on the establishment of a new staffing model .... or at least a model that is different from the one that it has previously use in this library system. This model is partially implemented as of today and will be fully in place by the time the Rancho del Rey Branch Library is open. The Library Department's organizational chart will be: Deputy City Manager/Library Director Assistant Library Director Public Services Manager Branches Automation Services Manager Integrated System Community Relations Manager Public Relations Technical Services Manager Acquisitions & Cataloging Volunteer Coordinator Volunteers Educational Services Manager Literacy & After School Over the years, the Library has centralized various functions, including collection development and the coordination of children's and young adult services. It also heavily relies upon self-directed teams for problem identification and solving. Currently, there are almost 20 such committees dealing with cimulation, reference delivery, branch communication, children's services, training, etc. Staffs from all locations and from all job classifications are invited to participate. Co-missioning between the teams is greatly encouraged. The new branch-staffing model now being implemented is intended to recognize the changing nature of librarianship and the changing library system in Chula Vista. When the City had only one library facility in the 1970s and 80s, it could attract, retain and afford to hire over a dozen public service librarians. Today, that model is neither practical nor affordable. Therefore, each large branch library (those over 30,000 square feet) will now have a core group of five professional librarians. These will be: Branch Manager (Senior Librarian) Assistant Branch Manager (Librarian III) Youth Services Librarian (Librarian II) Reference/Digital Librarian (Librarian II) Outreach Librarian (Librarian II) This professional staff will be the key management team for the branch library. They will take the lead in program development and implementation (in collaboration with the appropriate service coordinator and self-directed team), as well as supervise the rest of the staff. The majority of the staff members at the branch level will be Customer Services Representatives. The Customer Service Reps (previously known as Library Associates) will staff the Customer Service Desk (Information and Circulation) and serve as the "rovers" discussed above in the "Information and Reader's Services" section of this paper. Because of the heavy reliance on new RFID technology, which will allow the Library to move circulation functions to a new level of self-service, there will be far fewer staff members in the traditional Circulation classifications. Of course, re-shelving the books has not been automated - yet - so Pages (aka Library Aides) will continue to be required. The specific staffing plan for the Rancho del Rey Branch Library to cover the 63 hours of public service each week is intended to be as follows: Branch Manager/Senior Librarian 1 FTE Administrative Office Assistant 1 FTE Assistant Branch Manager/Librarian III 1 FTE Librarian II 3 FTE Early Childhood Specialist 1 FTE Customer Service Representatives (Library Associates) 14.63 FTE Circulation Supervisor 1 FTE Senior Circulation Assistant Library Aide Library Visitor Assistant (security) Total 1 FTE 8.1 FTE 0.83 FTE 32.56 FTE3 There will also be 2 FTE Custodian II from Public Works/Operations and 1 FTE Micro-Computer Specialist from the Management and Information Services Department assigned to work in the Rancho del Rey Branch Library. As at all of the branches, it is expected that volunteers and interns will augment paid staff to ensure a high quality of public service delivery. It is anticipated that Rancho del Rey will have approximately 20 volunteer positions serving in roles such as assisting with children's craft programs, shelf reading, and operation of the Friend's used bookstore. In addition, the Library has been using one or two paid interns from Southwestern College each semester to assist with special programs and help patrons use computers. This internship program should be an especially valuable resource for the "Bom to Read" Family Resoume Center since nearby Southwestern College (located within the branch service area) has an Early Childhood Education program. The Chula Vista Public Library understands that in order for this staffing model to work, there must be a commitment to a high quality of work life for both staff and volunteers and excellent intemal training program must be in place. Customer service cannot and will not suffer because of the change to having more para-professional staff members on the floor in place of MLS degreed librarians. As a result, a new training program is being developed and will be implemented in the spring of 2003. This training model, created in collaboration with the City of Chula Vista's Office of Employee Development (OED), will feature a number of learning modules. Certain basic elements such as quality customer service, software training, conflict resolution, supervisors academy, etc. will be taught by OED in classroom settings and via online tutorials. A separate 12-session, 24 hour, training module will concentrate on public library philosophies and tenets, CVPL policies, and practical applications. On-staff professional librarians will teach these components. Finally, the Library will utilize the Effective Reference Training program developed and conducted by the Tierra del Sol Regional Library Network to teach and reinforce reference skills. These formal training programs will be augmented in a number of ways. Permanent employees are being er/couraged to utilize their Professional Development Funds to register for attendance at InfoPeople workshops and at the California and Public Library Associations conferences. Scholarships are being offered to select staff to pay for room and board at these conferences. Librarian "table talks" are also held on a regular basis to encourage discussion of relevant issues such as filtering, collection development, etc. Finally, each December the library system closes all branches for one full day of staff development. Staff looks forward to this day of reflection on past progress and a look at the future direction. They hear from keynote speakers and then attend breakout sessions on ~ The branch will also house the offices of the Educational Services Manager and her staffof three as discussed earlier in tiffs report. They are not included in this FTE count. various topics. The Chula Vista Public Library's "Professional Development Day" was inaugurated in 1997 and is so well regarded that the City's Recreation Department now holds a similar event. V.E. COLLECTIONS Besides location, the quality of a library's collection is the most important factor in choosing a library. In the 2001 needs assessment telephone survey, 22% of all respondents rated "materials selection is good" as the number one mason they visit a library. Almost a quarter of eastside residents (24%) rated this as their number one reason. The survey also found that 84% of all respondents and 86% of eastside respondents said they were likely to use library books, 52% of all respondents and 52% of eastside respondents said they were likely to use magazines and newspapers, 62% of all respondents and 68% of eastside respondents said they were likely to audio-visual materials, 70% of all respondents and 72% of eastside respondents said they were likely to use reference materials, 39% of all respondents and 40% of eastside respondents said that they were likely to use computer based resources such as online databases. Comments from the town hall and focus group meeting reinforce the community's desire for a quality materials collection. Comments include: · Have lots of books · More copies of popular titles · Improve outdated collections · Expand books on tape collection · Provide more books · Offer more books on tape · Provide larger, more in-depth collections · Improve the currency of materials · Provide a collections of languages and cultural information about our neighbors The community's desire for a strong materials collection is also reflected in the Chula Vista Public Library's Strategic Plan 2002-2006. One of the primary goals of the strategic plan is to "Maintain an excellent and responsive materials collection." Two specific objectives designed to meet that goal will be accomplished through the opening of Rancho del Rey: Increase CVPL's annual materials expenditure per capita to the nation-wide median as reported in the current edition of Public Library Data Services' Statistical Report for libraries serving 100,000 to 249,999. For FY 2000 the median expenditure was $3.26, while for Chula Vista it was $2.01. The operational expenses for the new branch will include hundreds of thousands of dollars annually for materials, raising Chula Vista Public Library's per capita to the median level. 35 · Provide a minimum of 3 library items (books, videos, CDs, DVDs, etc.) per capita. As of December 3, 2003 the library system had 468,106 items for a per capita rate of 2.5. Rancho del Rey Branch Library will Add over 170,000 items to the system's total will allow the Chula Vista Public Library to reach this objective. It is clear that the desire for a sizeable, current, useful collection runs strong and deep. The opening of the Rancho del Rey Library will add over 170,000 items to the system's collection, greatly enhancing the size and depth of the materials collection for the entire community as well as meeting many of the system's goals and objectives. The library system would have preferred that the majority of the materials collection at Rancho del Rey Library be merchandized in a retail manner. However, since a large materials collection is so important to the community, volume capacity in the facility is a major consideration. Therefore, traditional stack configurations predominate. Nevertheless, the new book area, the audio-visual collections, magazines and newspapers, and portions of the teen area and the Children's Room lend themselves to retail style displays. V.E.i. Children's Collection In developing the collection plan for the Rancho del Rey Branch Library, the library system has taken into account many factors. For example, although the juvenile population (those under the age of ten) represents only 15.7% of the service area population, the juvenile book collection will make up 35% of the entire collection. This is because the community has expressed their desire, at the various town hall and focus group meetings, for a comprehensive children's collection at the new library They not only desire it, they expect it, since they are aware of and use the large collections at the Civic Center and South Chula Vista Branches (30% and 35% of the total collections respectively). Of special note is an exceptionally large collection of graded-level easy readers designed to positively reinforce early reading habits. The large juvenile collection, numbering over 59,000 items, will also support the homework and reading assignments from the nine public elementary schools in the service area. As reported by the Chula Vista Elementary School District in June 2000, the collection size in libraries in those schools range from a low of 6,249 volumes for 462 students to a high of 14,301 volumes for 718 students. Only two of the schools exceed the District's goal of 20 books per pupil, while two others just miss the mark at 19.9%. Based upon anecdotal evidence, it appears that students heavily use the public library because their own school libraries don't have the materials they need or because they are closed. V.E.ii. "Bom to Read" Family Resoume Center Collection As discussed earlier in this report, there is considerable research data that supports the contention that parents, grandparents, and other caregivers must be a child's "reading teacher" long before the child enters school - a true family literacy environment. 36 Additionally, there is much evidence that these caregivers must also be actively working with very young children on their social and developmental skill building and other school- readiness needs. The "Bom to Read" FRC collection is comprised of two distinct parts- the Parent/Teacher collection and the Bom to Read collection for very young readers. The Parent/Teacher collection will focus on educating and stimulating the adults who are critical in the development and pm-literacy aspects of child rearing- parents, camgivers, and teachers. This will be a 970-item collection, which will include a core reference collection of 170 volumes. Approximately 21% of the collection (200 volumes) will be in Spanish. The "Born to Read" young children's collection will include age specific books, puzzles, games, audio-visual materials, art supplies, puppets, manipulatives, and other toys to engage very young children and their parents or caregivers. Of the 4,950 activity and board books in this area, 1,000 will be in the major foreign languages represented in the Rancho del Rey Branch Library service area- Tagalog, Japanese, Korean, and Spanish. No matter what language is spoken by a parent or grandparent, aunt or uncle, friend or sibling, the young child may know the positive experience of being held and read to by a masted person. This collection of 5,000 books will be marketed in a number of ways, including "kits" or packets that will be compiled by library staff to make it easy for patrons with special needs to grab what they need and go, without having to search. These kits will include: Welcome New Baby Kit - books, videos and pamphlets providing information for new parents, with particular emphasis on the first year of life. Topics include breastfeeding, developmental stages, health, safety, nutrition, bonding, and community resources. Pregnancy Packet - books, videos, pamphlets, brochures, fliers, bibliography of on- line and community resoumes covering topics such as fitness and nutrition, childbirth preparation, infant development etc. Story time Kits - designed to assist preschool teachers and child care providers in centers as well as family day care homes. Kits will be compiled by themes and will contain a selection of picture books, a video or audiocassette, puzzles, puppets, and/or flannel board figures, along with instructions for related literacy extension activities. · Grandparent Kits - kits designed to help grandparents entertain visiting grandchildren. · Travel Kits - activities, songs, coloring books and other ideas and materials for families to take with them on the road. Early Intervention Kits - for parents who suspect their child may have a developmental delay, this provides information on the early intervention process and resources for families. Of course, a wide array of on-line resources for parents and professionals who work with children will be available, as well as a comprehensive and updated community resource file. V.E.iii. Young Adult Collection As reported earlier, there is a large young adult population in the Rancho del Rey Branch Library service area. The 2000 census counted 13,915 young people between the ages of 10 and 14 and the High School District reports that there are 2,539 students enrolled in the two area middle schools. It is expected that young adults will use almost all of the collection as they mature, as their reading interests change, and as they progress through school. However, a special YA collection will be established to especially entice them to use the branch library. It will consist of over 5,000 hooks that concentrate on fiction very popular to young adult readers such as series hooks, horror, fantasy, science fiction, romance, graphic novels, etc. There will also be popular magazines such as Surfer, Teen, Rolling Stone, and Hot Rod. The space will also have a small collection of non-fiction hooks on topics relevant to teenagers. Of course, the full range of audio-visual materials - especially DVDs and CDs will also be of high interest. The Library is currently exploring whether or not to add computer games to its collection and expects to make a decision in 2003. V.E.iv. Foreign Language Collection With the 2000 census finding that 49.6% of the city's population is of Hispanic heritage, the Library has attempted to meet the needs of that community through the development of an extensive Spanish Language collection. That collection now totals 43,034 volumes system- wide, or just fewer than 10% of the total collection. In planning for the new Rancho del Rey Branch Library, the library system has continued this approach of taking into account the demographic information (coupled with the survey results, and comments from tom hall forums and focus groups). According to the 2000 census, the service area for the Rancho del Rey Branch Library has 47,134 residents. Two- thirds of all Rancho del Rey area residents are non-white, with Hispanics representing 36.1% of the population and Asians at 18.9%. When looking more specifically at the Asian population of the service area, the census reports that 12.3% or 5,784 people are of Filipino descent. Finally, some 55% of eastside residents agreed in the 2001 telephone survey that there should be more Spanish language and foreign language materials. V.E.iv.a. Children's Foreign Language Collection A review of the languages spoken at the elementary schools is also a good indicator of how collections should be developed. Discovery Elementary is the closest school to the Rancho del Rey Library site. In March 2001, the Chula Vista Elementary School District reported 38 that some 50 languages were spoken at that school, the largest number in the district. The largest number of English Learner (EL) students were Spanish speaking - 117 or 13% of the total enrollment. The language with the second highest number was Korean with 37 EL students, followed by 20 EL Japanese-speaking students. At nearby Casillas Elementary the largest EL group of students is Spanish speaking, followed by Filipino/Tagalog. However, at Casillas Japanese speaking students outnumber those who speak Korean. The elementary school district reports that, district-wide, 7240 students were EL Spanish speaking. Just under 12% of the district total (or 860) EL Spanish language students reside in the Rancho del Rey Branch Library service area. The foreign language book collections at the nine public elementary school libraries in the Rancho del Rey Branch Library service area are quiet small. The percentage of foreign language materials at these school libraries ranges from a high of 13.3% (1,538 volumes out of a total 11,577) to a low of 3.5% (462 volumes out of 13,294). At five school libraries, the foreign language collection makes up less than 5% of the total. As a result of this analysis, the children's collections at Rancho del Rey will include a large Spanish language collection numbering over 12,500 volumes and representing 21% of the children's book collection. There will also be small board book collections in Japanese, Korean and Tagalog (100 volumes each). V.E.iv.b. Adult Foreima Languaee Collection The adult foreign language collection at Rancho del Rey will be focused entirely in Spanish and will number 8,700 volumes. This volume count has been developed based upon the demographic information outlined above and the Library's experience with the Spanish language adult collection at the South Chula Vista Branch Library. That facility, which serves a predominately Hispanic population in its service area, has an adult Spanish language collection numbering 14,937 volumes. They are well used - as demonstrated by the turnover rate of 1.58 circulations per volume for Spanish adult books compared to 1.02 circulations per volume for adult English language books. However, the Hispanic population is 63.9% of that service area compared to the 36.1% in Rancho del Rey. Also, the enrollment of the non-English proficient students in a branch library service area is a strong indictor of the primary language spoken in the home. Approximately 50% of the District's EL Spanish language students reside in the South Chula Vista Branch Library service area. However, in the Rancho del Rey Branch Library service area they account for only 12% of the total student population. One should he able to surmise that logically, there are fewer adults whose primary language in the home is Spanish in the Rancho del Rey service area. V.E.v. Cultural Heritage Collections Approximately five years ago, a Japanese Collection was developed at the EastLake Branch Library. This small collection, totaling approximately 300 items, was created at the request of the Japanese School (San Diego Nihongo Kyoiku Shinkokai Minato Galmen), which conducts classes on the campus of the EastLake High School. This collection is imended to provide an English language collection on Japanese culture and history for native Japanese raising families far fi.om their homeland. 74% of the eastside respondents to the 2001 needs assessment telephone survey said that providing more multi-cultural materials was important. As a result of this finding and because of many similar comments made during various public meetings (along with consideration of the community's demographics), the intent at Rancho del Rey is to establisher additional and larger cultural collections. There will be a substantial Filipiniana cultural collection (over 8,500 volumes or almost 6% of the book collection), Pan-Asian cultural collection (almost 3,500 volumes or 2.67% of the book collection) and Hispanic/Latino cultural collection (5,000 volumes or 3.39% of the book collection). These cultural collections will be primarily in English bm will concentrate on the history, culture, social and political movements of the regions, as well as provide the English language translations of popular authors from the Philippines Japan, Korea, Mexico, South and Central America. V.E.vi. Reference Collection As discussed above under the "Information and Reader's Services" section of the Programming portion of this report, the public wants and expects informational resources. However, it is the Library's experience that use of the primed book collection by the public and librarians has decreased with the advent of the Intemet and online subscription databases. Therefore, the reference book collection at Rancho del Rey Branch Library will be mean and lean. It will number 222 ready reference books at the Customer Service Desk, approximately 2,000 adult reference volumes and 680 children's reference books. Of these, 164 are expected to be in Spanish. Another reason that the reference collections will be smaller than at other branch libraries is the fact that extensive (and expensive) business and career resources are bought for the Civic Center Branch and art and architecture resources are bought for South Chula Vista Branch. Rancho del Rey is imended to have a general reference collection, meeting the Strategic Plan's service response of General Reference and Lifelong Learning,. V.E.vii. New Books A frequent refi'ain during the various town hall and focus group meetings was for more copies of popular titles. This comment also comes up a lot in the annual "Materials Availability Survey." Additionally, over 80% of eastside residents (compared to 78% 40 citywide) agreed that there needed to be "more copies of materials" when asked that question in the 2001 telephone survey. Therefore, the Rancho del Rey Library has a new book area that will allow some 2,200 volumes to be on display at any given moment. The goal will be to have between 10 and 15 copies of the hottest fiction titles available for check out, with fewer copies of less popular titles. Also displayed here will be well-reviewed titles and newly arrived books ora popular nature or those on a subject currently in the news. The area will include a mix of traditional shelving, face-out shelving and display tables such as found in mega-bookstores. V.Eoviii. Adult Fiction and Non-Fiction Of course, there will be a large adult non-fiction collection, numbering over 51,000 volumes. As indicated by the needs assessment, discussed above, some 6,000 of these volumes will be in Spanish, while another 17,000 volumes will be devoted to the unique Cultural Heritage collections. The fiction collection, numbering some 21,000 volumes will be shelved by genre and will also include a large number (2,000) of volumes in Spanish. V.E.ix. Audio-Visual Collection The audio-visual (AV) collections at all branches within the Chula Vista Public Library are very popular. In FY 2000-01, AV circulation constituted 29.5% of the total circulation system wide, although the AV collections make up only 8.5% of all collections. In light of the high usage, it will come as no surprise to learn that 72% of eastside (67% citywide) respondents to the telephone survey agreed that they wanted more a wider variety of videocassettes and DVDs. As a result, the AV collection at Rancho del Rey Branch Library has been developed based upon these usage patterns and past experience. As a result, this branch library is expected to have 22,222 AV items or 13% of the total collection. Over 77% of the collection will be adult and young adult oriented, with the remainder (23%) being allocated to children's. One unique factor is the decision to move totally to DVDs in this new library and to not have a videocassette collection. This decision is based upon usage of the current DVD collections and market analysis. Although DVDs currently make up only 7% of the system's total AV collection, they account for 22.7% of the total AV circulation. The annual turnover rate for DVDs is almost four times greater than it is for videos (4.4 vs. 1.1 respectively). Finally, although there has not yet been a decision to eliminate videos from the marketplace, clearly the market penetration of DVD players is increasing. According to an article in the Los Angeles Times both Best Buys and Circuit City's 2001 4th quarter profits surged as a result of sales of DVD players. Further evidence of the increase in the number of DVD players in the home comes from the Library's 2002 Library Materials Availability survey. Some 45% of respondents to this year's survey already owned a DVD player and many of those surveyed requested that the Library add more DVD titles to its collection. V.E.x. Periodicals and Newsl~apers In the 2001 needs assessment telephone survey, some 52% of all respondents said that they would likely use the magazines and newspapers when visiting a library. There was a similar response (52%) l~om residents bom the' eastside. Although it cannot be statistically verified, anecdotally it does appear that~ many people use the magazine and periodical collections daily at all branches. Rancho del Rey Library will have space for 203 adult and young adult periodical titles, 7 daily newspapers, and 40 children's magazines. Of these, 29 titles are expected to be in Spanish. As with all branches within the system, Rancho del Rey will retain one year's worth of periodical back-file for checkout purposes. This is a very popular service, accounting for almost 40,000 circulations (3.3% of the total cimulation) in FY 2000-01. Full-text articles, for research purposes, will be available online. V.E.xi. Materials Collection Chart To recap, the collection will total 170,100 volumes and is distributed in the following manner (beginning on next page): ~Book CollectionI Percent of Book Collection Projected Volumes Adult/Young, Adult Books 59.67% 88,097 Browsing New Books 2.87% 4,235 New Books (Face Out) 0.14% 200 Fiction Fiction 7.84% 11,570 Mysteries 0.87% 1,277 Paperbacks 1.71% 2,530 Romance 1.71% 2,530 Science Fiction & Fantasy 2.53% 3,732 Spanish Language Fiction 0.68% 1,000 Spanish Language Mysteries 0.07% 100 Spanish Language Paperbacks 0.17% Spanish Language Romance 0.17% Spanish Language Science Fiction 0.27% Large Print Large Prim 1.00% Non-Fiction Filipiniana (Cultural Collection) 5.80% Hispanic/Lafino Culture (Non-fiction) 3.39% Non-Fiction 19.14% Pan-Asian Culture (Non-Fiction) 2.33% Spanish Language Non-Fiction 4.06% Ready Reference Ready Reference 0.15% Reference Reference (Encyclopedias, directories, Etc.) 0.32% Reference 60" 0.51% Reference 66" 0.49% Spanish Language Reference 0.03% Young Adult Spanish Language Young Adult (Fiction and Non-Fiction) 0.34 Spanish Language Young Adult Paperbacks 0.10% Young Adult 2.66% Young Adult Paperbacks 0.34% 25O 25O 4OO 1,477 8,557 5,000 28,253 3,438 6,000 222 467 750 727 5O 5OO 150 3,932 5OO 43 Children/Juvenile Books 40.33% 59,531 Born to Read - Children's Special Books Japanese Language Children's Board Books 0.07% Korean Language Children's Board Books 0.07% Spanish Language Board Books 0.47% Tagalog Language Children's Board Books 0.07% Young Children's Board, Picture and Activity Books 2.68% Children's Paperbacks Children's Paperbacks 0.42% Spanish Language Juv. Paperbacks 0.08% Children's Picture Books Children's Easy Readers 5.01% Children Picture Books 3.73% Pan-Asian Culture Picture Books 0.34% Spanish Language Easy Readers 0.99% Spanish Language Picture Books 2.59% Children's Ready Reference Children's Ready Reference 0.04% Children's Reference Children's Reference 0.38% Spanish Language Juv. Fiction 0.08% Juvenile Fiction Filipiniana Juvenile Non-Fiction 0.14% Juvenile Fiction 6.98% Spanish Language Juv. Fiction 2.03% Juvenile Non-Fiction Juvenile Non-Fiction 11.28% Spanish Language Juv. Non-Fiction 2.23% Born to Read - Parent/Teacher Books Parent/Caregiver Books 0.41% Parent/Caregiver Reference books 0.12% Spanish Language Parenting 0.10% Spanish Language Parenting Reference 0.03% 100 100 700 100 3,950 617 122 7,401 5,500 5OO 1,464 3,825 60 565 114 200 10,298 3,000 16,651 3,294 60O 170 150 5O Total Books: 100.00% 147,628 ~udio-Visuai Collection~ Percent of AV Collection Adult/Young Adult Audio-Visual 79.75% Audio Cassette Spanish Audiobook Cassettes Audio Compact Disc (CD) Audio Compact Disc (CD) Audio Book (CD) Computer Video Games (CD) 0.90% 7.31% 10.01% 2.31% Spanish CDs Spanish YA CDs Young Adult CDs CD-ROM CD-ROM SoRware DVD DVD Documentary/Educational DVD Entertainment Spanish Language DVDs Young Adult DVDs 3.60% 1.70% 3.41% 1.00% 9.45% 22.50% 13.50% 4.05% Children/Juvenile Audio Visual Audio Cassettes Audiobook Cassettes Young Children's Audio Books Audio Compact Disc (CD) Audio Compact Disc (CD) 0.74% 0.25% 1.13% Audiobook CD Computer Video Games (CD) Spanish Children's CDs Spanish Young Children's CDs Young Children's CDs CD-ROM CD-ROM Software 0.99% 1.33% 0.36% 0.09% 0.86% 1.32% DVD DVD Spanish Children's DVDs Spanish Young Children's DVDs Young Children's DVDs 7.66% 3.29% 0.68% 1.58% Total Audio-Visual: 100.00% Projected Volumes 17,721 200 1,625 2,225 513 8OO 378 758 222 2,100 5,000 3,000 900 165 55 250 220 295 80 20 190 293 1,703 730 150 350 22,222 45 ~Periodicals & Newspaper CoHectionl Percentage of Periodicals Collection Adult/Young Adult Periodicals & Newspapers 84.00% Current Magazines Current Magazines 60.00% 7.60% Spanish Language Magazines Current Newspapers Current Asian Interest newspapers Current Newspapers Spanish Language Newspapers Young Adult Current Magazines Spanish Language Current Young Adult Magazines Young Adult Current Magazines 0.40% 1.60% 0.80% 1.60% 12.00% Children/Juvenile Periodicals & Newspapers 16.00% Children's Current Magazines Children's Current Magazines Current Parenting Magazines 6.00% 6.80% Current Preschool Magazines 1.60% Spanish Language Current Parenting Magazines Spanish Language Current Preschool Magazines 1.20% 0.40% 100.00% Total Newspapers & Periodicals: Projected Volumes 210 150 19 1 4 4 30 40 15 17 4 3 1 250 V.F. TECHNOLOGY V.F.i. Executive Summary The effective use of appropriate technology is an integral component of all public library service. The Chula Vista Public Library has long strived to achieve the right balance of books and bytes and, therefore, believes that technology should provide the basic infrastructure to make possible access to information of a research and recreational nature. It should be the gateway to remote sources of information, ensure access to current, relevant data, and serve as the conduit for communications. At the Rancho del Rey Branch Library technology will be utilized to meet the branch library's service responses of Basic Literacy, Commons, Current Topics and Titles, General Information, and Lifelong Learning. It will include and make use of current computer and computer networking technologies, both hardware and software based. The branch's technological heart will be the web-based Integrated Online Library System (IOLS) with its circulation, inventory control and enhanced online catalog functions. Information services will be augmented through the Library's website, which already includes access to the public IOLS functions as well as access to over 20 subscription databases, most of which are also accessible from home, work or school. Public access to the IOLS, the Internet and office software applications will be from 29 workstations located throughout the building. Staff will have access to XX workstations. These workstations will have the ability to display a wide range of text, image and multi- media resources. Standard configurations will be deployed to keep services current, consistent and secure, as well as to keep cost increases to a minimum. The workstations will be connected to two separate print stations. Software will be used to manage reservations, the print function, and log-on time limits. The workstations will have concealed wiring in sub-floor conduits to prevent tampering and trip hazards. There will be three separate Local Area Networks: one for patrons, one for staff connections, and one for lap top connections to accommodate laptop docking throughout the building. The branch will be linked to the Library Wide Area Network by a T3 circuit. The two meeting rooms will be fully wired and will also include teleconferencing capabilities. The technological goal of the "Bom to Read" Family Resource Center, a joint-venture of the Chula Vista Elementary School and the Library, is to provide opportunities for tutoring, exploring and creating. The focus will be on providing high quality software, which meets the educational goals of the Center as determined by the project administrators. Such software will be designed to enhance a child's learning experiences and especially the development of pre-reading skills. Programming will be enhanced by the use of a wireless laptop lab. This system includes a mobile cart with 20 laptops and will be used for hands-on classroom type computer instruction. Because it is so mobile, the cart can be used in the Bom to Read FRC or elsewhere in the building as additional Interact access points when not in use for instructional purposes. The construction of the Rancho del Rey Branch Library will allow the library system to begin implementation of Radio Frequency Identification (RFID) software and hardware for inventory control and cimulation functions. This technology will allow the branch to offer five self-check-out units, which is expected to handle approximately 85% of all circulation. There will also be a self-check-in with pre-sorting onto book tracks. The use of RFID will allow the Library to reallocate traditional circulation-related staff to information and reader's services. Other technological applications will include a WinDSX access control system, a hard-wired video surveillance system and standard safety/emergency systems. Technology itself is useless unless both the staff and public are well trained in its uses and appropriate applications. Such technology training is a hallmark of the Chula Vista Public Library system. The Library's new staff training program, discussed in the Staff and Volunteers section above, has a heavy emphasis in this area. The training not only provides hands-on opportunities, it also is intended to give staff the resources necessary to cope with and adapt to new ways of accessing information, new ways of providing circulation service as well as other future innovations. Public training on how to most effectively utilize the Library's IOLS, the Interact and office sotlware applications will be also be conducted on a regular basis. This type of instruction will even be held in the "Born to Read" Family Resource Center were parents and young children will be able to learn how to use computers together. V.F.ii. Chula Vista Public Library - Current Status of Technology The Chula Vista Public Library has a long history of effective utilization of technology. As early as 1981, the Library installed an automated inventory control/cimulation system. A second-generation system, with online catalog, became operational in 1991. In 1995, the Library introduced self-check-out units at its branches and by the late 1990s; the Library was continuing to enhance its services by embracing the Interact as a tool and a resoume. Below is a brief summary of the current status of technology at the Chula Vista Public Library: In October 2000, the Library migrated fi.om the DRA Inlex Integrated Online Library System (IOLS) to an Innovative Interfaces Millennium IOLS, which incorporates a Digital 500U server and 7-bay RAID hard drive array. The new system utilizes client-server technology with appropriately configured computers and peripherally connected self-check-out units at all branches. The system enables patrons to connect from within the library and remotely fi.om home or office via the Intemet to browse the OPAC to obtain holdings/shelf status information. Dial-up lines to a 48 1¢-- telephone renewal and to a telephone notification system allows patrons to remotely renew checked-out items and to receive overdue item notification via automated phone call. E-mail notification is also available for patrons who have provided an e- mail address for their account. The Library utilizes both the acquisitions and cataloging functions of the Millennium system. OCLC serves as the Library's bibliographic utility. Thanks to a grant from the California State Library, the online catalog now provides book cover photos, reviews and annotations. The 2001 needs assessment telephone survey found that the majority of users (52% citywide) found the Library's online catalog "easy to use." However, this figure was substantially higher (64%) fi.om respondents living in eastern Chula Vista. System-wide, the Library currently has 155 direct patron use or patron services related computer workstations. An example of patron service related computers would be those used to support the network printing. Patrons may reserve the Intemet and office application software (Microsoft Office suite) workstations using the PHAROS Printing and Reservation System. The PHAROS software also times- out a patron who has been on the computer after a certain time limit and manages their print jobs to networked laser printers. Intemet services for patrons are provided by a T-1 Frame-Relay connection to Pacific Bell Internet Services. The Library also uses the PHAROS software to allow patrons to choose whether or not they want filtered or unfiltered access to the Internet for themselves or their children. The Library finds that almost all adults choose unfiltered access for themselves and filtered access for their children. The Library uses N2H2 "Bess" product as its filter. The Internet workstations in the Children's Room are all filtered. This is done phmarily to keep adults, without children, from using the limited resoumes in the Children's Rooms. Children's whose parents or guardians have selected that unfiltered access to the Intemet may use adult workstations. Staff of course, has unfiltered access to the Intemet at all staffworkstations and public service desks. South Chula Vista Branch Library also has a mobile cart, which holds fourteen (14) laptop computers that are connected to a hub on the cart. The laptops provide access to the Internet, the Library's catalog, subscribed databases and specialized software. English language learners, students, and their families for supervised, self-directed language learning are the primary users of the wireless lab. The library provides remote access to its online databases through the medium of its locally hosted web site (www.chulavistalibrar,/.com). The database vendors maintain authentication for the remote access databases. There are 71 staff workstations, which provide office applications (Microsoft Office Suite), e-mail (Microsoft Outlook-based) and Intemet access as well as access to 49 Innovative's various client applications such as Millennium Cimulation and Millennium Cataloging. The Library, through the auspices of the City's MIS Department, employs various server/workstations throughout the system. The Library uses Windows NT 4.0 as its network operating system, for the office applications and print services. The servers are used to provide office applications for staff and public, print services, and file services. In addition, the library maintains its own in-hnuse e-mail services with an Exchange server, and web services using a Gates Foundation content server. Of course, the library's primary server system is the Innovative Interfaces "Millennium" integrated online library system which manages access to and maintenance of the library's collection of materials. The Library's network telecommunications system is primarily Cisco hardware- based, employing routers and hubs at the central site (Civic Center branch) and branch libraries to establish and maintain the required WAN (Wide Area Network). The remote libraries are intemonnected for data utilizing Frame Relay over dedicated T-1 lines. These lines connect the EastLake and South Chula Vista Branch Libraries to the network located at the Civic Center Branch Library as well as to the Library's Interact connection. The network at the Civic Center Library is connected to the other networks in the City via fiber optic cabling, and to the Interact via Frame Relay over a dedicated T-1 line. In addition, the Library uses dedicated T-I lines to connect to the City's telephone switch for voice communications. A Pix Firewall product provides firewall protection on all computers. At this time, the Library's website contains all the usual and expected components including access to the online catalog along with the ability to reserve and renew materials. There is a calendar of events, directory of branches, text of public service policies, and many informational resources. From the site, registered patrons may access over 20 subscription databases, such as Gale's General and Health Reference Centers, NewsBank, NetLibrary, and Encyclopedia Britannica. A number of these online resources are in Spanish. The Library is currently committing over $100,000 of its materials budget for the cost of these electronic products. In 2002, the Library, through its membership in the Tierra del Sol Regional Library Network, was able to provide online access to 24/7 reference service. The 2001 telephone needs assessment survey determined that 46% of respondents found what they were seeking on the Library's website. The majority of survey respondents (53% eitywide) said that they were likely to use the Library's website and online catalog from home. However, only 4% of the respondents said that they had used the website to secure information about a library program or service. Furthermore, in a technology focus group, the majority of respondents (8 out of 14) indicated that they were not aware that the Library offers access to information from one's home computer. And only 1 of 13 respondents was aware of the availability of 24/7 online reference assistance. Clearly, the Library has work to do in promoting use of the website. 50 That Library's website was recently being redesigned as part of an overall redesign of the City of Chula Vista's website. A major promotional campaign to alert residents to the new and improved site is just ready to get underway. Staff support of the Library's technology comes fi.om two directions. The Library's Automation Manager is responsible for the IOLS (Innovative's Millennium). The City's Management and Information System's Department provides one full-time Microcomputer Specialist on-site at each of the larger branch libraries (Civic Center and South Chula Vista). The Microcomputer Specialist is responsible for all installation and maintenance of computers, servers, and peripherals, installation and management of the PHAROS printing and reservation system, computer and network security, interfacing software applications with the local integrated system, installation and maintenance of telecommunications equipment, etc. V.F.iii. Chula Vista Public Library -Technology Vision/Plan The Library's long term vision for the role of technology in its over all service delivery plan is thus: Technology will provide the basic infrastructure to make possible access to information of a research and recreational nature. It will be the gateway to remote (online) sources of information, ensuring access to current, relevant data. It will serve as the conduit for communication between student and teacher, librarian and patron, citizen and government. Many of the goals of the Library's current Strategic Plan reflect the Chula Vista Public Library's commitment to using technology wisely and effectively. · Provide access to library programs and services through the use of technology · Maintain an efficient, cost-effective, patron-oriented library materials inventory system that is responsive to public need · Ensure the Library's networks and facilities include compatibility with current and projected information delivery technology · Use technology to increase productivity and contain costs, if possible Other goals are met through the use of appropriate technology as part of their objectives: · Goal: Deliver accurate and efficient information reference services responsive to individual and community needs Objective: Implement 24/7 reference service via the CVPL's website · Goal: Provide opportunities for lifelong learning Objective: Annually present a minimum of six formal sessions of library/computer training classes for the public at each branch library 51 · Goal: Increase the visibility and community awareness of the Library Objective: Review the CVPL website weekly for accuracy and timeliness V.F.iv. Rancho del Rev Branch Library - Applications of Teehnolo~,v At the Rancho del Rey Branch Library, technology will play a significant role in meeting the identified needs of the community. An analysis of the 2001 telephone needs assessment survey supports such an endeavor. The survey found that 11% of all eastside respondents (8% citywide) said that "good availability of computer equipmenl/resources" was the number one reason to visit a library facility. Some 29% of eastside respondents (28% citywide) were likely to visit a library to use the Internet, while 28% of eastside residents (25% eitywide) said they would likely visit a library to use personal computers for general office applications. In addition, 71% of eastside respondents said they wanted better computers and faster Internet connections. A large percentage of respondents (41% eastside, 37% citywide) indicated they would visit a library to take computer-training classes. In fact, 75% of eastside respondents (74% citywide) said that it was important to offer computer-training classes. As a result, the specific technological goals for the Rancho del Rey project are to: · Provide sufficient and appropriate computing hardware, software and peripherals to enable staff to provide excellent service to the public, both in-house and remotely · Provide hardware and soi~v~e to ensure effective voice and electronic communication between and among library staff · Provide network infrastructure supportive of diverse and evolving types of connective technologies · Provide a responsive, stable, flexible, reliable, and feature rich library inventory management system (integrated online library system) · Provide technological support for the special needs of the Born to Read - Family Resource Center · Provide technological solutions to support and ensure the physical safety of staff and public · Provide technological solutions to ensure the physical security of the library's assets · Provide teleconferencing facility for staff and patrons · Provide training for staff and the public in the use of the enabling technologies · Provide for the assistive technology needs of the Library's users · Prove self-service technologies for the public to enable staff to be assigned to other direct patron duties 52 How technology will specifically be integrated at the Rancho del Rey Branch Library is outlined below. This section will also describe how technology specifically will support the provision of public library services at this branch library. V.F.iv.a. Wirin~ and Cable Obviously, technology cannot be actually utilized to meet the needs of public service delivery unless the appropriate infrastructure has been put in place. At the Rancho del Rey Library, the electrical and data/telecommunications needs will be met through a series of electrical closets, conduits and raceways. The electrical wiring and network cabling will be very flexible, in order to accommodate both growth in the number of workstations, printers, etc. and changes in their locations. All public workstations will have concealed wiring installed in sub-floor conduits to prevent tampering and trip hazards. There will be three physically separated Local Area Networks: one for patrons, one for staff connections, and one for laptop connections. The telecommunication closets will be linked by a multi-mode fiber optic backbone. The branch will be linked to the Library's WAN by a T3 circuit. The Library's connection to the Interact will be upgraded from its current T1 status to T3 to accommodate the increased capacity needs mandated by the Rancho del Rey branch. . V.F.iv.b. Circulation Services Circulation services will continue to operate via the Library's IOLS Innovative Interfaces' Millennium system. There is no expectation at this time that the Library will move to a new IOLS before the opening of Rancho del Rey. Innovative Interfaces support staff has assured the Library that our current hardware configuration will easily accommodate the additional materials and patron data in the amounts that have been projected. There will however have to be the initialization of currently uninitialized hard drive space but this will simply require a request to Innovative Interfaces Support to accomplish. Some circulation services will continue to be available from the Library's website, including access to the catalog and the ability to place holds and renew items. Additionally, if the Library opts to offer the service, library patrons will be able to utilize PDAs to wirelessly access the library's catalog and do many of the things that currently require the use of a "wired" computer. Also, "Held Item Delivery" which is a way to expand delivery of held items options to include mail delivery (i.e. patron can opt through the system, to have items mailed to them), will soon be available. As discussed above, in the section on Circulation Services programming, there will be a heavy emphasis on self-service at Rancho del Rey Branch Library. The Library has used self-checkout for over seven years with excellent results. Approximately 30% of all circulation is currently flowing through just five self-checkout units in the system. It is expected that this figure will be closer to 85% at the Rancho del Rey Branch Library. This should occur, because the Library plans to move to the Radio Frequency Identification (RFID) system, with its incredible flexibility and ease of use by the patrons. No more fumbling for the card - one's purse can be put right on the scanner. No more one-book-at-a- time checkout - a whole stack of items can be scanned simultaneously. Self-checkout will occur at five RFID self-checkout stations located adjacent to the entrance/exit. New to the library system will be self-check-in at Rancho del Rey. This is now going to be possible because of the R.FID technology. Library materials will be inserted into a return bin, discharged and then pre-sorted onto book trucks. Adequate space has been allocated for such a retum system at the new branch and the library is working with vendors on possible configurations of the system in the returns area. RFID technology will also allow for easy and convenient inventory control and shelf reading because RFID utilizes radio signals to carry data. The "ID" tags that are placed in each collection item are actually miniature radio circuits/transmitters that an RFID "receiver" device can read, many at a time. In this way, individual barcodes do not have to be read by a conventional optical scanner, but instead groups or shelves of items can be RFIDd in one swipe of a wand. These systems also have theft detection system counterparts. The Library's primary reason for moving to greater use of self-service in the cimulation areas is to ensure that the current high quality of information and reader's services can be maintained. As discussed in the Staffing and Volunteer section of this report the Library intends to have a large number of staff on the floor assisting patrons with their informational needs. This can only occur if the Library is able to further automate circulation and re- deploy staff positions from check-out and check-in to information and reader's services delivery. V.F.iv.c. Information and Reader's Services Twenty some years ago, cataloging and inventory control (cimulation) were the first functions automated by libraries. However, during the past decade, reference and reader's services have experienced a technological revolution. This will continue to be true at Rancho del Rey Branch Library. The staff and public will continue to have access to key functions they have come to need and expect. For the public there will be on-floor access to the online public catalog, to the Library's website, to the Intemet, and to office software applications at 29 public workstations (Adult- 19 adjacent to the reference and teen areas, Children's- 10). These workstations will have the ability to display a wide range of text, image and multi-media resources. Standard configurations will be deployed to keep services current, consistent and secure and to keep costs to a minimum. Patrons will have access to two networked laser printers that will serve the workstations. One will be located at the Customer Service Desk (near adult Intemet workstations) and the other in the Children's Room (also adjacent to Internet workstations. These locations will negate the need for the patron to walk a long distance to obtain their copies. A software package will be used to manage the print function from all public workstations, as well as manage reservations and time limits for use of Internet and Office Software applications. This software also allows patrons to select whether they want filtered or unfiltered access to the Interact as discussed earlier. Patrons will be able to utilize laptop docking throughout the building via a separate LAN. There will also be wired Intemet access for patron-supplied laptop computers in many locations throughout the building, including the study/conference rooms. This LAN will be kept separate fi.om the other LANs for security purposes. A wireless laptop mobile cart will be available for instructional purposes or other type of use. The mobile cart will have 20 laptops and can be easily moved anywhere in the building. In the morning it may be located in the Bom to Read FRC where a group of daycare providers may be using it to access current laws. In the afternoon it may move to the reference area where it can serve as additional Interact access workstations during peak business hours. Then in the evening it might be found in a conference room being used for a senior citizen's computer instruction class. It is expected that assistive technology in Rancho del Rey will take the form of both software and hardware elements. Along with other standard equipment, 21-inch monitors, operating system sottware with enlarged text enabled, workstations with sound cards, speakers and software that "reads" screen contents to the user may be available for those requiring adaptive technologies to more satisfactorily use the library. Both staff and the public will continue to benefit fi.om the electronic resources that will be available via the workstations. The Library's IOLS offers an enriched online catalog with pictures of book jacket covers, annotations, and reviews. Innovative is working on products that will enable the linking of digital objects to library catalog titles (bibliographic records). Also, the building of local media collections will be supported. Expansion of resource- sharing (interlibrary loan) systems [1NNReach] and activities brokered and managed through the Innovative Interfaces system, enhanced OPAC performance through the addition of single-search spec searches across multiple databases, are some of the coming features in the next software release. As mentioned earlier, the City is currently redesigning its website and as part of that effort, the Chula Vista Public Library has also rethought its scope and depth. Although the new site will have over 100 pages, it will be easy to navigate and include an internal search engine. There will continue to be an emphasis on providing access to electronic resources - both subscription databases such as periodical indices and full-text as well as pre-selected, well- regarded Intemet sites such as those found in the Librarians' Index to the Interact. As a result, both the public and staffwill have access to a much larger world of learning, facts and opinions than could otherwise be provided in a traditional print and audio-visual collection. V.F.iv.d. "Born to Read" Family Resource Center The use of appropriate technology will be an important component of the joint-venture "Bom to Read" Family Resource Center. Based upon a detailed set of educational goals that will be developed by the Library and the Chula Vista Elementary School District, high quality educational software will be purchased and made available on two workstations outfitted with a larger mouse for easier eye hand coordination. This sot[ware will be specifically designed to educate the youngest viewer and will focus on topics such as colors, sounds, and general identification of objects. Much of the software being designed today is to be used jointly by the parent/caregiver and child. Those types of software include stories and songs, phonetic sounds, letter shapes and other pre-reading skills. As reported in the 1994 Computers in the Head Start Classroom: Recommendations from the Head Start/IBM Partnershil~ Pro/ect (page 16): "Computer experience for children ages three and four motivates them and influences their behavior in other areas of the classroom. It has increased their ability to attend to task, cooperate with other children, and teach each other. Also, social skills such as waiting for tums or asking for help appropriately have been improved. Children show greater ability to follow directions, wait for directions, listen, and be patient. Of course, parents and caregivers will also have access at the Center to online databases and the Internet, which will provide them with information and guidance on child rearing and development. There will also be formal computer training and soft-ware utilization classes for both parents and children in the Center. The availability of the 20-unit wireless laptop mobile cart, discussed above, will greatly facilitate this effort. The wireless lab at Rancho del Rey Branch Library will be used to replicate the system's popular afler school tutoring programming for 1st through 6th grad children. VF.v.e. Other Technoloeical Aoplications The City is deploying its access control system, WinDSX, in all new building installations. This system provides facilities with a keyless lock system and photo ID key badges using smart card technology. The Rancho del Rey branch will be equipped with standard instrument sets for identified public service staff stations as well as for all permanent staff at their desks or office spaces. Additionally, there will be wireless communications devices to be used by some staff for roaming the floor and connecting to the online catalog. This will allow the library to provide more efficient service by bringing it to the patron wherever they might be in the library. Emergency systems will be in place to mitigate any technology-based (i.e. computer or automated system) exigencies that occur. Energy emergencies (blackouts, brownouts, etc.) will be handled by UPS (Uninterruptible Power Supply) units installed in-line for all mission-critical hardware. A disaster plan for fire and other emergencies has been developed for the system. The Rancho del Library will employ the use of hard-wired video surveillance system consisting of ten cameras located in key areas throughout the facility and a master monitor located behind the Cimulation Desk. This system will help maintain a secure environment for the patrons and staff. It is planned that the exterior grounds will be monitored as well in this fashion. Programming in the conference and meeting rooms will be enhanced by the addition of video-conferencing capabilities. V.F.vi. Technology Inventory Chart The Rancho del Rey Branch Library will have the following equipment: Technolo~ Inventory Type of Item ADA Assistive Listening Device ADA Electronic Magnifier (CCTV), Color ADA Screen Magnifier Attachment Adtran Channel Service Unit T-1 CSE ACE Unit APR-U-Unit Analog Adaptor Audio Cassette Tape Player/Recorder AV/Technology Equipment Cart, Large Bar Code Reader, Hand Held Bar Code Wedges Cabinet, AV Equipment Cable, Central Drop Box With Splitter Cash Register CD Player CD Player With Limited Volume Control CD/Cassette Tape Player Change Machine (Bill & Coin) Computer Lab Cart, Mobile (MobileSchool 500) Computer Stand Computer, Combination Station(R.FID) Computer, Conversion Computer, CPU Only Computer, OPAC (On-Line Public Access) Desktop Computer, Public Desktop Computer, Public Portable Computer, Public Printing Station Computer, Public Reservation/Printing Station Computer, Self-Check Combination Station (RFID) Computer, Server Computer, Staff Desktop Computer, StaffRFID Workstation Copier, B&W Freestanding Copier, Color Freestanding Copier/Color Networked Printer Data Jack Data Jack For Laptop LAN DRU-30 Series E Digital Remote Unit Quantity 10 1 4 3 3 2 2 3 31 1 1 3 1 13 3 1 1 1 2 1 9 20 29 23 1 1 5 1 41 1 4 1 1 161 70 3 57 DSU/CSU Telecommunications Device DVD Player FAX Machine, Desktop FAX Machine, Desktop Card-Operated Fax Stand Inventory Wand Laser Pointer Materials Sorting System (13 Sorts W/bins)) Microphone, Floor Microphone, Lavaliere Microphone, Table Patch Panel Patch Panels For Telephone Printer Stand Printer, BW With FAX Printer, Ink-Jet (B&W) Printer, Ink-Jet (Color) Printer, Laser (B&W) Printer, Laser (Color) Printing Station Projection Screen, Motorized Ceiling Projection Screen, Wall Mounted Projector, Ceiling Mounted AV Projector, Data Desktop Rack, Computer / Communications Equipment Radios, 2 Way Router/Switch Screens, Computer Privacy Security System, Book Thetl Security System (Video Surveillance; and Access Control) Self Check-Out Counter Server, Desktop / Rack Mount Speaker System (Hard Wired) Surge Protector, Single Device Table, Work TDD Telecommunications Backboard Telecommunications Equipment/Hub / Multiplexer Telephone Answering Machine Telephone Handset Telephone Handset (wall Mounted) Telephone, Portable/wireless Handset Telephone, With Headset Telephones, Public Pay Television, Flat Screen Wall Mounted TV/VCR Player 1 4 2 1 1 1 1 1 1 1 1 3 2 1 1 2 9 3 2 2 1 2 3 2 1 4 9 19 1 1 5 2 1 1 1 1 3 2 1 42 12 4 1 2 4 4 Typewriter, Electric Uninterruptable Power Supply (UPS), Multiple Devices Vend Card Encoder/Dispenser Vend Card Reader Vend Card Recharger Video Cassette Player/Recorder Videoconferencing System White Board, Electronic RESOLUTION NO. 2003- RESOLUTION OF THE'CITY CoIfNcIL OF THE CITY OF CHULA VISTA APPROVING THE CITY'S APPLICATION FOR GRANT FUNDS UNDER THE CALIFORNIA READING AND LITERACY IMPROVEMENT AND PUBLIC LIBRARY CONSTRUCTION AND RENOVATION BOND ACT OF 2000 FOR CONSTRUCTION OF A NEW LIBRARY AT THE NORTHWEST CORNER OF EAST H STREET AND PASEO RANCHERO (RANCHO DEL KEY LIBRARY); MAKING ALL NECESSARY CERTIFICATIONS, INCLUDING CERTIFYING THE LIBRARY PROJECT BUDGET AND COMMITTING LOCAL MATCHING FUNDS AND SUPPLEMENTAL FUNDS; APPROViNG THE JOINT COOPERATiVE AGREEMENT WITH THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT FOR THE JOINT VENTURE PROJECT; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL DOCUMENTS NECESSARY TO COMPLETE THE GRANT APPLICATION WHEREAS, on August 20, 2001, the City Council directed staff to prepare an application for a "California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000" for the construction of the Rancho del Rey Branch Library; and WHEREAS, on June 11, 2002, the City Council approved an application package for a round-one submittal for grant funds; and WHEREAS, on December 2, 2002, the California Public Library Construction and Renovation Board ("Board") considered 61 applications for state matching grants for public library constructions projects in California; and WHEREAS, the Board funded 13 projects totaling $130,318,102, unfortunately, Chula Vista's application to construct the Rancho del Rey Branch Library was not one of those funded; and WHEREAS, Library staffhas reviewed the State Library Review Panel comments regarding our first round application and has made the necessary and appropriate changes; and WHEREAS, the City is now ready to submit for round-two considerations and applications are due to the State Library on March 28, 2003 with the Board making awards totaling $110 million in September; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in the previously adopted Mitigated Negative Declaration, IS-02-40, thus, no further environmental review or documentation is necessary. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the City's application for grant funds under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for construction of a new library at the northwest comer of East H Street and Paseo Ranchero. BE IT FURTHER RESOLVED that the City Council does hereby certify the project budget of $22,528,800 contained in the Library Project Budget section of the Application Form. BE IT FURTHER RESOLVED that the City Council does hereby commit the City's local matching fund amount of $5,837,200 identified in the Library Project Budget, as required by Education Code Section 19995(a). BE IT FURTHER RESOLVED that the City Council does hereby commit to provide supplemental funds of $5,851,000 necessary to complete the project at the level stated in the project budget. BE IT FURTHER RESOLVED that the City Council does hereby certify the availability of $5,837,200 in local matching funds and $5,851,000 in supplemental funds specified in the project budget when they are needed to meet cash flow requirements for the project. BE IT FURTHER RESOLVED that the City Council does hereby commit to operate the completed facility and prdvide direct service. BE IT FURTHER RESOLVED that the City Council does hereby commit that the facility shall be dedicated to public library direct service use for a period of 40 years following completion o f the proj¢ct. BE IT FURTHER RESOLVED that the City Council does hereby approve the Joint Cooperative Agreement with the Chula Vista Elementary School District for the joint venture project, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Council does hereby certify the accuracy and truthfulness of all information submitted in the Application Form and the required supporting documents. BE IT FURTHER RESOLVED that the City Council does hereby authorize the Mayor to execute said Agreement and all documents necessary to complete the grant application. Presented by David Palmer Deputy City Manager J:\ATTORNEY\RESO\grant\GRANT NEW LIBRARY Approved as to form by /~J,y'Attomey COUNCIL AGENDA STATEMENT Meeting Date 3/25/03 ITEM TITLE: Public Hearing regarding annexation of territory to Community Facilities District No. 97-2 (Preserve Maintenance District) and designation of such territory as Improvement Area C thereof Resolution of the City Council of the City of Chula Vista, Califomia, acting as the legislative body of Community Facilities District No. 97-2 (Preserve Maintenance District), making certain determinations and authorizing submittal of levy of special taxes to the qualified electors of certain territory proposed to be annexed to such community facilities district SUBMITTED BY: REVIEWED BY: Director of EngineeringF City Manager ~C¢~ (4/5ths Vote: Yes__ No x~_X_) On February 18, 2003 the City Council initiated the Conununity Facilities District No. 97-2 (Preserve Maintenance) ("CFD No. 97-2") annexation proceedings by adoption of Resolutions 2003-059 and 2003-060. Tonight's action is the next step in the formal proceedings to annex the territory within Village 11 into CFD No. 97-2 and to designate such territory as Improvement Area C thereto. Special taxes levied within Improvement Area C will fund the costs of the Resource Monitoring Program as well as Preserve Operations and Maintenance consistent with the requirements of the Otay Ranch Resource Management Plan Phase 1 and 2. The City has retained the services of MuniFinancial as special tax consultant and Best Best and Krieger LLP as legal counsel to provide assistance during the proceedings. RECOMMENDATION: That Council: 1. Open Public Hearing and receive testimony from the public, Approve the resolution making determinations and authorizing submittal of levy of special taxes to the qualified electors of certain territory proposed to be annexed to CFD No. 97-2. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. Page 2, Item ]~ Meeting Date 3/25/03 DISCUSSION: In July 1998, Council formed Community Facilities District No. 97-2 (Preserve Maintenance District). CFD 97-2 is currently divided into two Improvement Areas, Improvement Area A and Improvement Area B, that were designated when CFD No. 97- 2 was formed. Special taxes levied within Improvement Area A fund the costs of the Resource Monitoring Program as well as Preserve Operations and Maintenance within the initial boundaries of the Otay Ranch Preserve. Special taxes levied within Improvement Area B only fund the Resource Monitoring Program within that same area. Along with the annexation of Village 11 to CFD 97-2, it is proposed that such territory be designated as Improvement Area C of CFD 97-2. Special taxes levied within Improvement Area C will pay for both Preserve Operations and Maintenance and the Resource Monitoring Program consistent with the requirements of the Otay Ranch Resource Management Plan Phase 1 and 2. It is necessary to form Improvement Area C to finance the maintenance of open space and habitat preservation lands that will be within the boundaries of the Otay Ranch Preserve, as such boundaries may be modified from time to time. Territory Proposed to be Annexed The proposed boundaries of the territory proposed to be annexed to CFD No. 97-2, and designated as Improvement Area C encompass the parcels located within Village 11 owned by Brookfield Shea Otay. Brookfield Shea Otay is proposed to contain approximately 1,297 single-family detached homes, 661 condominium/townhome units, 315 apartments, 10 acres of multi-use property and 9.3 acres of Community Purpose Facility ("CPF") property. The City Council previously approved an annexation boundary map for this tenitory, identified as Annexation Map No. 3 to CFD 97-2. A reduced copy of the map is presented in Exhibit "B". Proposed Sl~ecial Tax The rate and method of apportionment of the special taxes authorized to be levied within the existing boundaries of CFD 97-2 has four categories of taxation, as follows: Developed Parcels (Single Family and Multi-Family Residences) are taxed based on the square footage of the structure. Commercial Parcels are taxed on the acreage of the parcel. Developed Parcels are those parcels for which a building permit has been issued. · The Final Mapped properties which include all single family residential parcels for which a building permit has not been issued are taxed on acreage of the parcel. Page 3, Item Meeting Date 3/25/03 · Property not categorized as Developed or Final Mapped Property is taxed on acreage of the parcel. · The Exempt Category includes all publicly owned parcels and Homeowner's Association parcels. A new Rate and Method of Apportionment has been proposed for Improvement Area C using the same methodology and maximum special tax rates as contained in the original rate and method of apportionment approved at the time of formation of CFD 97-2 in 1998. Collection of Taxes At the beginning of each fiscal year the administrator of CFD 97-2 shall determine the amount of the Special Tax Liability (budget plus reserve) of each Improvement Area. Then, the special taxes will first be levied within each of the Improvement Areas on the Residential Developed Parcels therein to fund the Special Tax Liability for such Improvement Area. If this pool of funds is not enough to fund the Special Tax Liability for such Improvement Area, as may be the case in the early years of development, CFD No. 97-2 will levy the special tax on the vacant land within such Improvement Area starting with Final Mapped Property. The buffer of having the vacant land covering any portion of the Special Tax Liability not funded from special taxes levied on Residential Developed Parcels within an Improvement Area will disappear once the Improvement Area has been fully developed. If the Special Tax Liability for any fiscal year for an Improvement Area is less than the maximum special tax authorized to be levied on the Developed Parcels within such Improvement Area, the actual rate of the special taxes to be levied on such Developed Property in that specific year will be reduced accordingly. Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes" proposed to be established for the territory proposed to be annexed to CFD 97~2 and designated as Improvement Area C: (See Exhibit "A" for full description of RMA) · The maximum special tax rates increase each year by the annual percentage increase, if any, in the Consumer Price Index. The RMA provides that the annual budget for any year may include an amount deemed necessary to maintain an adequate level of this operating reserve fund. The maximum special tax rates are based on the original Rate and Method of Apportionment of special taxes established for CFD 97-2 when CFD 97-2 was formed. If the actual square footage of development within Improvement Area C meets or exceeds the projections on which the special tax rates were based, the actual special tax rate necessary to be levied annually within Improvement Area C /5"3 Page 4, Item l~ Meeting Date 3/25/03 to fund the Special Tax Liability for Improvement Area C may be less than the authorized maximum special tax. The tax rate for Improvement Area C will be the same as existing properties within the CFD for the first year however the inflation factor for Improvement Area C is more conservative and may result in the creation of tax rates in the future that differ from the tax rates in Improvement Areas A and B. The new inflation factor is the annual percentage change in the San Diego Metropolitan Area all Urban Consumer Price Index, All Items ("SDCPI"). The inflation factor for Improvement Areas A and B is the lower of the SDCPI or the California 4th Qtr. Per capita income, which has not been an accurate measure of the change in preserve maintenance and monitoring costs during the last two years. Proposed Maximum Special Taxes The proposed maximum and actual special tax rates for fiscal year 2002/03 for Improvement Area C of CFD 97-2 are as follows: Special Tax Category Residential (per square foot) Non-Residential (per acre) Final Map Property (per acre) Undeveloped Property (per acre) Maximum Special Tax (Monitoring) $0.0054 $87.3126 $87.3126 $56.3516 Special Tax Category Residential (per square foot) Non-Residential (per acre) Final Map Property (per acre) Undeveloped Property (per acre) Maximum Special Tax (Operations&Maintenance) $0.0086 $138.6152 $138.6152 $89.4627 Resolution There is one resolution on today's agenda, which, if adopted, will accomplish the following: The RESOLUTION MAKiNG DETERMiNATIONS is the formal action of the City Council making certain findings and determinations pertaining to the annexation of Village 11 to CFD No. 97-2 and authorizes the electors of such territory to vote on the authorization to levy special taxes within such territory. Future Actions Page 5, Item /~' Meeting Date 3/25/03 The City Clerk, acting as the designated election official, will hold a special election within the territory proposed to be annexed to CFD No. 97-2 on April 1, 2003, at which time the qualified electors of such territory, being the owners of land within such territory, will be entitled to vote on a ballot proposition to authorize the levy of the special taxes described above within such territory. The adoption of a resolution declaring the results of the special election and, if the levy of such special tax is approved by the qualified electors, ordering the annexation of Village 11 to CFD No. 97-2 and designating such territory as Improvement Area C thereof is scheduled for the City Council meeting of April 8, 2003 at 6:00 P.M. FISCAL IMPACT All costs of the annexation to the district are being borne by the developers and the on- going administration will be funded entirely by CFD No. 97-2. The City will receive the benefit of full cost recovering for staff cost involved in the annexation and administration of CFD No. 97-2 in perpetuity. Exhibits: "A" Rate and Method of Apportionment "B" Boundary Map d:lEngineerlLANDDEg~ProjectslOtay Ranch Village 1 llCFD972Area cl97-2 Annexation Al 13 ROF draft 3. doc 15-5 Exhibit A CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 97-2, ANNEXATION NO. 3 RATE AND METHOD OF APPORTIONMENT IMPROVEMENT AREA C (V'dlage 11, Brookfield Shea) A Special Tax of Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista ("ClaD'') shall be levied on all Assessor's Parcels in Improvement Area C of the CFD and collected each Fiscal Year commencing in Fiscal Year 2002-03 in an amount determined through the application of the rote and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the pray/s/om hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "Acre or Acreage" means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on an Assessor's Parcel Map, the land area shown on the applicable Final Subdivision Map, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "ACt" means the Mello-Roos Community Facilities ACt of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the Gty, acting for and on behalf of the CFD as the administrator thereof, to detemfine, levy and collect the Special Taxes, including salaries of Cityemployees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer Area C of the CFD as determined bythe City. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "Building Square Foot or Square Footage" means the square footage as shown on an Assessor's Parcel's building permit of Residential Property excluding garages or other structures not used as living space. "CFD Administrator" means an official of the City, or designee thereof, respomible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. City of Cbula Vista 02/05/2003 2:38 PM CFD 97.2, lmprovement Area C, Village ll (Brookfield Shea) Page 1 /5-(o "CFD" means Community Facilities District No. 97-2 of the City of Chula Vista. "City" means the City of Chula Vbta. "City Clerk" means the City Clerk for the City of Claula Vista or his or her designee. "City Manager" means the CityManager for the City of Ctlula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legishtive body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Final Map Property" means a single family residential lot created by a Final Subdivision Map, but which is not classified as Developed Property. "Final Subdivision Map" means a subdivision of property creating single family residential buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued wit~hout further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following june 30. "Improvement Area C" or "Area C" means Improvement Area C of the CFD, as identified on the boundary map for the CFD as amended from time to time. "Land Use Class" means any of the classes listed in Table 1 or Table 2. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Non-Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non-residential use. "Operating Fund" means a fund that shall be maintained within the CFD for each Fiscal Year to pay for Resource Morfitoring and/or Preserve Operations and Maintenance activities and Administrative Expenses. City of Cbula Vista CFD 97.2, Improvement Area C, Village 11 (Brookfield Sbea) 02/05/2003 2:38 PM Page 2 "Operating Fund Balance" means the mount of funds in the Operating Fund at the end of the preceding Fiscal Year. "Operating Fund Requirement" means for any Fiscal Year an amount equal to the Resource Monitoring Fund Requirement and the Preserve Operations and Maintenance Fund Requirement for the current Fiscal Year in which Special Taxes are levied. "Preserve Operations and Maintenance" means those activities described in Attachment A hereto which is incorporated herein by this reference. "Preserve Operations and Maintenance Fund Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Preserve Operations and Maintenance plus a pm- rata share of the budgeted Administrative Expenses of the District for the current Fiscal Year in which Special Taxes are levied. "Property Owner Association Property" means any property within the boundaries Area C of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Public Property" means any property within the boundaries of Area C of the CFD that is, at the time of the CFD formation, expected to be used for anypublic purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Balance" means the amount of funds in the Reserve Fund at the end of the preceding Fiscal Year. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for anyFiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building pennit(s) has been issued for purposes of constructing one or more residential dwelling unit. "Resource Management Plan" means the Otay Ranch Phase 1 Resource Management Plan also referred to as "The Otay Ranch Resource Management Plan" dated 10/28/93 and the Otay Ranch Phase 2, Resource Management Plan dated June 4, 1996, as both such plans may be amended from time to time. City of Cbula leu ta CFD 97-2, Improvement Area C, Viilage 11 (Brookfield Sbea) 02/05/2003 2:38 PM Page 3 "Resource Monitoring Program" means those described in Attachment B hereto which is incorporated herein by this reference. "Resource Monitoring Fund Requirement" means for any Fiscal Year an amount for each Improvement Area equal to the Improvement Area's fair share of the budgeted costs of the Resource Monitoring Program plus a pro rata share of the budgeted Administrative Expenses of the CFD for the current Fiscal Year in which Special Taxes are levied. An Improvement Area's "fair share" shall be based on the Improvement Area's percentage of the total acreage within the Otay Ranch General Development Plan Planning Area for which a Resource Monitoring Program funding mechanism has been established. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in Area C to fund the Special Tax Requirement. "Special Tax Requirement" means that amount required in any Fiscal Year for Area C to: (i) pay the Resource Monitoring Fund Requirement, and Preserve Operations and Maintenance Fund Requirement, less the Operating Fund Balance, and (h) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (iix) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. "State" means the State of California. "Taxable Property" means all of the Assessor's Parcels within the boundaries of Area C of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property. City of Chula Wtsta CFD 97.2, Improvement Area C, Village 11 (Brookfield Shea) 02/05/2003 2:38 PM Page 4 ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year using the definitions above, all Taxable Property within Area C of the CFD shall be classified as Category I, Category II, Category III or Exempt. Developed Property, Final Map Property or Undeveloped Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. MAXIMUM SPECIAL TAX RATE Category I Category I includes Developed Property within the District ("Category I"). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 2002/03 on Developed Property shall be at the rates set forth in Table 1 below. For Residential Property, the Special Tax shall be levied based upon Building Square Footage and for Non-Residential Property shall be levied based on Acreage. TABLE 1 Max'maum Special Tax for Category I Community Facilities District No. 97-2 Improvement Area C Description Resource Operation & Monitoring Maintenance Residential $0.0054 $0.0086 Non-Residential $87.3126 $138.6152 Category II Category II includes each Assessor's Parcel of Taxable Property within the District for which a Final Map has been recorded, but which is not classified as a Developed Parcel ("Category n'). The Maximum Special Tax for Resource Monitoring, and Preserve Operations and Maintenance that may be levied for Fiscal Year 2002/03 on each Assessor's Parcel in Category II shall be as shown in Table 2 below (said amount to be levied pro rata for any pordon of an Acre). TABLE 2 Maximum Special Tax for Category II Community Facilities District No. 97-2 Improvement Area C City of Chula V'~ta 02/05/2003 2:38 PM CED 97-2, Improvement Area C, Village 11 (Brookfield Shea) Page 5 Resource Monitoring Operation & Maintenance $87.3126 per Acre $138.6152 per Acre Category III Category III includes each Parcel of Taxable Property within the District not subject to Special Tax under any other category (" Category III"). The Maximum Special Tax which may be levied for Fiscal Year 2002/03 on Taxable Property within Category III shall be as shown in Table 3 below (said amount to be levied pro rata for anyportion of an Acre). TABLE 3 Maximum Special Tax for Category III Community Facilities District No. 97-2 Improvement Area C Resource Monitoring $56.3516 per Acre Operation & Maintenance $89.4627 per Acre Exempt Category The Exempt Category includes each property owned, conveyed or irrevocably offered for dedication to a public agency, or land which is in the public right-of-way, unmanned ut'dity easements which make utilization for other than the purpose set forth in the easement impractical, common areas, private streets and parks, and open space lots ("Exempt Category"). In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that may be levied on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's shall determine the allocation to each Land Use CLass. Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in Area C shall be increased each Fiscal Year beginning in Fiscal Year 2003-04 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area all Urban Consumer Price Index (All Items). D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-04, and for each following Fiscal Year, the Council shall levy the Area C Special Tax at the rates established pursuant to steps 1 through 4 below so City of Chula Vista CFD 97-2, Improvement Area C, Wdlage 11 (Brookfield Sbea) 02/05/2003 2:38 PM Page 6 that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: Step 1: Determine the revenue which could be generated by Parcels assigned to Category I by multiplying the Building Square Footage for Parcels classified as Residential Parcels bythe Maximum Special Tax per Building Square Foot for Resource Monitoring, and Preserve Operations and Maintenance for Parcels and adding to that the maximum revenue which could be generated by multiplying the total acres for Parcels classified as Non-Residential Parcels by the Maximum Special Tax per Acre for Resource Monitoring and Preserve Operatiom and Maintenance. Step 2: If the total revenue as calculated in Step 1 is greater than the estimated Special Tax Liability for Improvement Area C, reduce the Special Tax for each Parcel proportionately so that the Special Tax levy for the Fiscal Year is equal to the Special Tax Liability for the Fiscal Year. Step 3: If the total revenue as calculated in Step 1 is less than the Special Tax Liability for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C, classified as Category II. The Special Tax for Parcels assigned to Category II shall be calculated as the lessor of: The Special Tax Liability for Improvement Area C as determined bythe City, less the total revenue generated for all Parcels under Step 1 above, divided by the total Acres for all Parcels within Improvement Area C assigned to Category II, OR (h~ The Maximum Special Tax rate for Parcels assigned to Category II. Step 4: If the total revenue as calculated in Step 1 and 3 is less than the Special Tax Liability, for Improvement Area C, a Special Tax shall be levied upon each Parcel within Improvement Area C classified as Category III. The Special Tax for Parcels assigned the CategoryIII shall be calculated as the lessor of: The Special Tax Liab'flity for Improvement Area C as determined bythe City, less the total revenue generated for all Parcels under Step 1 and 3 above, divided by the total Acres for all Parcels within Improvement Area C assigned to CategOry III, OR The Maximum Spec'm] Tax rate for Parcels assigned to Category III and within Improvement Area C. However, in the event k is determined that the Special Tax Liability for Improvement Area C includes delinquent Special Taxes from Parcel in Category III from the prior Fiscal Year, City of C. bula Vista 02/05/2003 2:38 PM CFD 97-2, Improvement Area C, Vflrlage I1 (Brookfield Sbea) Page 7 the City shall determine the amount of delinquent taxes that arose from such Parcels and identify the owner(s). The amount of delinquent Special Taxes, if any; that arose from the applicable owner(s) shall tint be divided by the total Category III Acres owned by such owner(s) and collected from the applicable owner(s) with the remaining portion of the Special Tax Liability not related to delinquent Special Taxes to be collected from all Parcels in Category III according to the procedure set forth in the preceding paragraph. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property or Multi-Family Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within Area C of the CFD. E. APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as k deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations 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. MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same drne as ordinary ad ~orem property taxes; provided, however, that the CFD Administrator may direcfly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of Area C of the CFD or as otherwise determined appropriate by the CFD Administrator. TERM OF SPECIAL TAX Taxable Property in Area C of the CFD shall remain subject to the Special Tax in perpetuity. City of Cbula V"uta CFD 97~2, Improvement Area C, Village 11 (BrookfieM Sbea) 02/'05/2003 2:38 PM Page 8 Attachment A Description of Preserve Opemtiom and Maintenance Preserve Operations and Maintenance includes the maintenance, operation and management of the public or private property within boundaries of the Otay Ranch Preserve, as such boundaries may be modified from time to time, required by the Resource Management Plan to be maintained as open space or habitat preservation land or both. Such maintenance, operatiom and management shall include, but not be limited to, the following: · Preserve Maintenance. Development, implementation and ongoing provision of programs to maintain, operate and manage preserve habitat values through: cultivation, irrigation, trimming, spraying, fertilizing, and/or treatment of disease or injury; removal of trimmings, rubbish, debris and other solid waste; maintenance of trails; removal and control of exotic plant species (weeds); and control of cowbirds through trapping. · Security. Development, implementation and ongoing provision of security programs to: enforce "no trespassing" rules; curtail activities that degrade resources, such as grazing, shooting, and illegal dumping; remove trash, litter, and other debris; control access; prohibit off-road traffic; and maintain fences and trails. · Preserve improvements: Acquire equipment and/or install improvements necessary to maintain, operate and manage the open space and habitat preservation land described above. The above description of the Preserve Operations and Maintenance is general in nature. The actual maintenance, operations and management of the open space and habitat preservation land within the Otay Ranch Preserve may be modified from time to time as necessary in order to effectively provide such services in compliance with the requirements of the Resource Management Plan. City of Chula Vista CID 97.2, Improvement Area C, Village ll (Brookfield Shea) 02/05/2003 2:38 PM Page 9 Attachment B Description of Resource Monitoring Implement the annual biota monitoring and reporting program consistent with the Resource Management Plan to identify changes in the q,m!;ty and quantity of preserve resources including wildlife species, sensitive plants and sensitive habitat types. The above description of the Resource Monitoring is general in nature. The actual monitoring and reporting program may be modified from time to time as necessary in order to effectively provide such services consistent with the requirements of the Resource Management Plan. City of Chula Vista CFD 97-2, Improvement Ama C, Village 11 (Broole]~eld Shea) 02/05/2003 2:38 PM Page Exhibit B M RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT), MAKING CERTAIN DETERMINATIONS AND AUTHORIZING SUBMITTAL OF THE LEVY OF SPECIAL TAXES TO THE QUALIFIED ELECTORS OF CERTAIN TERRITORY PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA. CALIFORNIA (the "City Council"), has previously declared its intention and held and conducted proceedings relating to the annexation of territory (the "Annexation Area") to an existing 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, and specifically Article 3.5 thereof (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 o f 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"). The existing Community Facilities District has been designated as COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) (the "District"); and, WHEREAS, notice ora public hearing relating to the annexation of such territory to the District, the extent of such territory, the furnishing of certain public services and all other related matters has been given; and, WHEREAS, it has now been determined that.written protests have not been received by 50% or more of the registered voters residing either within the Annexation Area or the District and/or property owners representing more than one-half (1/2) or more of the area of land within the Annexed Area or within the District; and, WHEREAS, inasmuch as there have been less than twelve (12) persons registered to vote within the Annexation Area for each of the 90 preceding days, this legislative body desires to submit the levy of the required special tax to the landowners of the Annexation Area, said 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 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 Community Facilities District Law, and this findif~g is made pursuant to the provisions and authorization of Section 53325.1 of the Government Code of the State of California; the annexation of the Annexation Area to the District as proposed 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 Annexation Area 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 Annexation Area 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 Annexation Area; 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 Annexation Area and the requirements for impartial analysis and ballot arguments have been waived with the unanimous consent of the qualified electors of the Annexation Area; 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 annexing the Annexation Area to the District; and the public services proposed to be financed from the proceeds of special taxes to be levied within the Annexation Area are necessary to meet increased demands placed upon the City as a result of development and/or rehabilitation occurring in the Annexation Area. SECTION 3. BOL[NDARIES OF ANNEXED AREA. The boundaries and parcels of land the Annexation Area and in which the public services are to be provided and on which special taxes will be levied in order to pay the costs and expenses for such public services are generally described as follows: All that property and territory proposed to be annexed to the District, as said property is shown on a map as previously approved by this legislative body, said map designated as Annexation Map No. 3 of Commnnity Facilities District No. 97-2 (Preserve Maintenance), a copy of which is on file in the Office of the City Clerk and shall remain open for public inspection. SECTION 4. DESCRIPTION OF SERVICES The services that are authorized to be financed from the proceeds of special taxes levied within the District are certain services which are in addition to those services provided in or required for the territory within the District and will not be replacing services already available. A general description of the services authorized to be financed by the District is as follows: The monitoring, maintenance, operation and management of public property in which the City has a property interest and which conforms to the requirements of the Ordinance or private property within the Otay Ranch 2 Preserve which is required by the Preserve Owner/Manager to be maintained as open space or for habitat maintenance or both. Such property may be located outside the boundaries of the District and outside the jurisdictional boundaries of the City of Chula Vista. Such services shall not include the maintenance, operation and/or management of any property owned, maintained, operated and/or managed by the federal and/or state government as open space, habitat maintenance and/or for any other purpose. The District shall finance all direct, administrative and incidental annual costs and expenses necessary to provide such monitoring, maintenance, operation and management of such public property. The same types of services which are authorized to be financed by the District from the proceeds of special taxes levied within the District are the types of services to be provided in the Annexation Area. If and to the extent possible such services shall be provided in common with the District and the Annexation Area. SECTION 5. SPECIAL TAX Except where funds are otherwise available, a special tax sufficient to pay for such services to be provided in the Annexation Area, secured by recordation of a continuing lien against all non-exempt real property in the Annexation Area will be levied annually within the boundaries of the Annexation Area. For particulars as to the rate and method of apportionment of the proposed special tax, reference is made to the attached and incorporated Exhibit "A" which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the Annexation Area to clearly estimate the maximum amount of the special tax that such person will have to pay. The special taxes shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this City Council may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. SECTION 6. SPECIAL TAX ACCOUNTABILITY MEASURES. Pursuant to and in compliance with the provisions o f Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes within the Annexaton Area as described in Section 5 above: A. Each such special tax shall be levied for the specific purposes set forth in Section 5. above. B. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 5. 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 7. ELECTION The proposition related to the levy ofthe special tax shall be submitted to the qualified electors of the Annexation Area, said 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 said annexed territory. The special election shall be held on April 1, 2003, and such election shall be a special election to be conducted by the City Clerk (hereinafter "Election Official"). If the proposition for the levy of the special tax receives the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax may be levied as provided for in this Resolution. SECTION 8. 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. 97-2, ANNEXATION MAP NO. 3 AUTHORIZATION FOR SPECIAL TAX LEVY Shall Community Facilities District No. 97-2 (Preserve Maintenance District) of the City of Chula Vista be authorized to levy special taxes, subject to the accountability measures set forth in Resolution No. , within the territory identified in Annexation Map No. 3 to such district pursuant to the rate and method of apportionment of special taxes (the "Rate and Method") set forth in such resolution to finance authorized services and administrative expenses and to fund and replenish a reserve fund, all as provided for in the Rate and Method? SECTION 8. VOTE The appropriate mark placed in the line before the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed in the line before the word "NO" in the manner as authorized, shall be counted against the adoption of said proposition. SECTION 9. ELECTION PROCEDURE This City Council hereby authorizes the Election Official to take any and all steps necessary for the holding of said election and ratifies any such steps previously taken by such Election Official which were 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 said election, and said 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. 4 Presented by: Furnish and address official ballots for the qualified electors of the Community Facilities District. Cause the official ballots to be mailed and/or delivered, as required by law. Receive the returns of the election. 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 arrangements and take the necessary steps to pay all costs of the election incurred as a result of services performed by the District and pay costs and expenses of all election officials. 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: Clifford Swanson Director of Engineering J:\attorney\reso\cfd 972 levy Ann Moore City Attomey I COUNCIL AGENDA STATEMENT Item ~ Meeting Date 3/25/03 ITEM TITLE: Public Hearing regarding the formation of Community Facilities District No. 09M (Village 11 - Brookfield Shea Otay) Resolution of the City Council of the City of Chula Vista, California, forming and establishing Community Facilities District No. 09M (Village 11 - Brookfield Shea Otay) and authorizing submittal of levy of special taxes within the CFD to the qualified electors thereof SUBMITTED BY: REVIEWED BY: Director of Engineerin~ City Manager~ x.~¢/ (4/5ths Vote: Yes No X ) On February 18, 2003 the City Council initiated the CFD No. 09M proceedings by adoption of Resolutions 2002-056 through 2002-058. Tonight's action is the next step in the formal proceedings to establish CFD No. 09M. Special taxes levied in this district will fund the perpetual operation and maintenance of slopes, medians and parkways and storm water treatment facilities associated with Village 11- Brookfield Shea Otay. The City has retained the services of MuniFinancial as special tax consultant and Best Best and Krieger LLP as legal counsel to provide assistance during the proceedings. RECOMMENDATION: That Council: 1. Open Public Hearing and receive testimony from the public, Approve the resolution forming and establishing Community Facilities District No. 09M (Village l 1 - Brookfield Shea Otay) and authorizing submittal of levy of special taxes within each such improvement area to the qualified electors thereof. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On January 13, 1998, Council adopted the "City of Chula Vista Statement of Goals and Policies regarding the establishment of Community Facilities Districts" (the "Goals and Policies"). The approval of this document ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized Page 2, Item [~ Meeting Date 3/25/03 public services. Special taxes levied by maintenance districts, such as CFD No. 09M, are currently excluded from the 2% maximum tax criterion set forth in the Goals and Policies. On April 28, 1998, Council, acting under its Charter authority, enacted the "Chula Vista Community Facilities District Ordinance" (the "Ordinance"). The Ordinance adopted the Mello- Roos Act with modifications to accomplish the following: 1) incorporate all maintenance activities authorized by the "Landscaping & Lighting Act of 1972" ("1972 Act"), 2) include certain maintenance activities not listed in the "Mello-Roos Act" or the "1972 Act", and 3) establish an operating reserve fund for open space districts. CFD 09M will provide the necessary funding for the operation and maintenance of public landscaping and storm water improvements serving Village 11 - Brookfield Shea Otay by levying an annual "special tax", which is collected from the property owners within CFD 09M in conjunction with the property taxes. There is no direct cost to the City. All expenses related to the district administration, including levying and collecting the special taxes, are also funded from such special taxes. The proposed CFD No. 09M is consistent with the above-mentioned Ordinance and the Goals and Policies. In addition, staff has met with the developer to discuss their concerns, clarify the intent of the Goals and Policies and Ordinance, and review the proposed special tax rates and the methodology for the apportionment of the special taxes. All of the issues raised by the developers have been discussed and solutions, satisfactory to all parties, have been incorporated in the "Rate and Method of Apportionment" (the "RMA"). The RMA has also been modeled after similar open space maintenance districts in the surrounding area. During it's February 18, 2003 meeting, City Council approved Resolution No. 2002-058 which ordered the preparation of a Community Facilities District Report ("Report"). The Report includes the following information in greater detail: Area of Benefit The proposed boundaries of CFD No. 09M encompass parcels located within the Village 11. Brookfield Shea Otay owns 100% of the property within CFD 09M. Brookfield Shea Otay is proposed to contain approximately 1,297 single-family detached homes, 661 condominium/townhome units, 315 apartments, 10 acres of multi-use property, and 9.3 acres of Community Purpose Facility ("CPF") property. Descril>tion of the Improvements to be Maintained The proposed CFD No. 09M will fund the operation and maintenance of the public landscaping and storm water treatment improvements within the Village 11 - Brookfield Shea Otay. Cost Estimate The estimated annual budget for CFD No. 09M is approximately $886,793 (see Table 1.). Page 3, Item ] ~ Meeting Date 3/25/03 Table 1. Cost Estimate Item Cost Estimate Landscape Maintenance $715,739 Storm Water Maintenance 55,436 Administrative Expenses 35,000 Reserve 80,618 Total Annual Cost Estimate $886,793 The attached Special Tax Report has a detailed cost estimate. Proposed Special Tax CFD 09M has four proposed categories of taxation, as follows: Residential Developed Parcels (Single Family and Multi-Family Residences) are taxed based on an Equivalent Dwelling Unit (EDU) determined by the density of the development. Density of up to eight homes per acre is equivalent to 1 EDU. Density of eight to 20 units per acre is taxed at 80% of an EDU, and above 20 units per acre is taxed at 60% of an EDU per dwelling unit. · Commemial Parcels are taxed on the basis of 3.84 EDU per acre of the parcel. · The Final Mapped properties which include all single family residential parcels for which a building permit has not been issued are taxed on acreage of the parcel. · Vacant land (Other Taxable property) is taxed on acreage of the parcel. · The Exempt Category includes all publicly owned parcels, Homeowner's Association parcels, and CPF property owned by non-profit organizations. Developed Parcels are those parcels for which a building permit has been issued. The proposed maximum special tax rate in the RMA on all Developed Parcels was determined by dividing the estimated annual budget at buildout (plus an operating reserve allocation of 10% of the annual budget) by the total estimated square footage of development at buildout (reduced by 10% to avoid a possible revenue shortfall in the event that the actual square footage of development does not meet the developer's current projections). The proposed maximum special tax rate in the RMA on vacant land has been determined by dividing the estimated annual budget at buildout (plus a reserve allocation of 10% of the annual budget) by the estimated net lot acreage within the district. Collection of Taxes At the beginning of each fiscal year the City shall determine the amount of the Special Tax Liability (budget plus reserve) for the District. Then, the special taxes will first be levied on the Residential Developed Parcels. If this pool of funds is not enough to fund the Special Tax Liability, as may be the case in the early years of development, the district will levy the special Page 4, Item /~ Meeting Date 3/25/03 tax on the vacant land starting with Final Mapped Property. The buffer of having the vacant land covering any portion of the Special Tax Liability not funded fi.om special taxes levied on Residential Developed Parcels will disappear once the area has been fully developed. If the Special Tax Liability for any fiscal year is less than the maximum special tax authorized to be levied on the Developed Parcels, the actual rate of the special taxes to be levied in that specific year will be reduced accordingly. Following is a brief discussion of some key issues regarding the "Rate and Method of Apportionment (RMA) of Special Taxes": The maximum special taxes rates shall be adjusted each year for inflation using a factor equal to the increase, if any, of the annual .change of the San Diego Consumer Price Index. The Ordinance requires that the developer maintain the landscape improvements for the minimum period of one year following their completion. During this period the District will collect the special taxes with the purpose of building up a six months operating reserve. The RMA provides that the annual budget for any year may include an mount deemed necessary to maintain an adequate level of this operating reserve fund. The maximum special tax rates are based on the best estimate by the developer of the square footage of residential development within CFD 09M (reduced by 15%). This reduction in estimated total square footage of development has the net result of raising the maximum special tax that can be levied on future residential parcels to avoid a possible shortfall in special tax revenue in the event that the actual square footage of development is less than the projected square footage on which the computation of the special tax rates has been based. If the actual square footage of development meets or exceeds the projections on which the special tax rates were based, the actual special tax rate necessary to be levied annually to fund the Special Tax Liability may be less than the authorized maximum special tax. The special tax formula provides that any cost due to delinquent special taxes on vacant land shall be apportioned to the Improvement Area where the delinquent parcels are located. The annual budget used to calculate the special tax rates are only the "best estimates" of the cost of maintenance at buildout. There is always a risk that actual expenses in future years may be higher than the total maximum collectable special taxes. This may result in reduced levels of maintenance of landscaping, unless the property owners approve an increase in the special tax rates (2/3 voter's approval is required), which is considered unlikely. Staff believes, however, that the proposed maximum special tax rates contain enough of a cushion in the operating reserve, the inflation adjustment, and the assumed reduction of total square footage of development to minimize the risk of future special tax revenue shortfalls. Page 5, Item/~ Meeting Date 3/25/03 Proposed Maximum Annual Special Taxes The proposed maximum annual special tax rates for fiscal year 2003/04 for a typical dwelling unit within CFD 09M is given in Table 2. Table 2. Maximum Special Tax Density 0 to 8 Units per acre 8 to 20 Units per acre Greater than 20 Units per acre Non-Residential Maximum Special Tax $470.28 $376.22 $282.16 $1,805.87/Acre Resolutions There is one resolution on today's agenda, which, ifadopted, will accomplish the following: The RESOLUTION OF FORMATION is the formal action of the City Council forming and establishing Community Facilities District No. 09M and authorizes the electors to vote on the special taxes. Future Actions The City Clerk, acting as the designated election official, will hold a special election within the territory proposed to be included in Community Facilities District No. 09M on April 1, 2003, at which time the qualified electors of such territory, being the owners of land within such territory, will be entitled to vote on a ballot proposition to authorize the levy of the special taxes described above within such territory. The adoption of a resolution declaring the results of the special election and, if the levy of such special tax is approved by the qualified electors, the introduction of an ordinance to authorize the levy of such special tax are scheduled for the City Council meeting of April 8, 2003 at 6:00 P.M. FISCAL IMPACT All costs of formation of the district are being borne by the developers and the on-going administration will be funded entirely by the district. The City will receive the benefit of full cost recovering for staff cost involved in the following activities: 1) District formation (Staff cost estimated at $30,000, and 2) District annual administration costs (estimated annual staff cost each year is $18,000 and an additional $17,000 for the contractual administration for the Engineering Division.) Exhibit 1: CFD Report &lEngineetqLANDDEF1ProjectslOtay Ranch Village lllCFDOgmlVillage 11 All3 ROF 2-25-03 revised, doc Exhibit 1 CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT 09M (VILI~GE 11, BROOKFIELD SHEA OTAY) COMMUNITY FACILITIES DISTRICT REPORT Cl~ OF CHU VISTA Submitted: March 25, 2003 MuniFinancial Corporate Office 27368 Via Industria Suite 110 Temecula, CA 92590 Tel: (909) 587-3500 Tel: (800) 755-MUNI (6864) Fax: (909) 587-3510 Regional Offices Antelope Valley, CA Jacksonville, FL Los Angeles, CA Oakland, CA www.muni.com Orange County, CA Phoenix, AZ San Diego, CA Sacramento, CA Seattle, WA CITY OF CHULA VISTA CITY COUNCIL STEPHEN C. PADILLA, MAYOR PATTY DAVIS, COUNCILMEMBER JERRY RINDONE, COUNCILMEMBER MARY SALAS, COUNCILMEMBER JOHN MCCANN, COUNCILMEMBER CITY MANAGER DAVE ROWLANDS CHUIA VISTA COMMUNITY FACILITIES DISTRICT REPORT CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 09M TABLE OF CONTENTS PAGE INTRODUCTION ....................................................................................... 4 A. DESCRIPTION OF SERVICES ............................................................. 2 B. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT .............. 5 C. COST ESTIMATES FOR SERVICES ..................................................... 5 D. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES ..................................................................................................... 5 E. GENERAL TERMS AND CONDITIONS ............................................. 6 F. CONCLUSION ....................................................................................... 6 EXHIBIT A ............................................................................................... A-1 BOUNDARIES OF DISTRICT AND BOUNDARY MAP .......................................................................... A-I EXHIBIT B ................................................................................................ B-1 COST ESTIMATES ............................................................................................................................................ B-I EXHIBIT C ............................................................................................... C-1 RATE AND METHOD OF APPORTIONMENT ......................................................................................... C-1 CHUIA VISTA COMMUNITY FACILITIES DISTRICT REPORT CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 09M (Village 11, Brookfield Shea Otay) INTRODUCTION WHEREAS, the City Council of the City of Chula Vista (hereinafter referred to as the "Agency" or "legislative body of the local Agency"), in the State of California, did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, being Chapter 2.5 of Part 1, of Division 2, of Title 5 of the Government Code of the State of California ("Act"), and specifically Section 53321.5 thereof 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 ("Ordinance") (the Act and Ordinance may be referred to collectively as the "Community Facilities District Law", expressly ordered by adoption of Resolution No. 2002-320 the filing of a written Community Facilities District Report ("Report") with the Agency for a proposed Community Facilities District with two designated improvement areas, which Community Facilities District shall be referred to as Community Facilities District No. 09M (Village 11, Brookfield Shea Otay), (hereinafter referred to as "CFD No. 09M"); and WHEREAS, the Report generally contains the following: a description of the Services by type which are required to adequately meet the needs of CFD No. 09M; an estimate of the cost of providing the Services, including incidental expenses and all other related costs including but not limited to the determination of the amount of any special taxes, collection of any special taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Agency with respect to CFD No. 09M and any other expenses incidental to the maintenance and inspection of the authorized work to be paid through the proposed special taxes; CHUL4 VISTA the rate and method of apportionment of the special tax in sufficient detail to allow each property owner within the proposed CFD No. 09M to estimate the maximum annual amount of payment. For particulars, reference is made to the Resolution of Intention (Resolution No. 2003-056), and the Resolution Ordering the Preparation of the Community Facilities District Report (Resolution No. 2003-058) previously approved. NOW THEREFORE, MuniFinancial, the appointed responsible firm directed to prepare the Report, pursuant to the provisions of the Code, does hereby submit the following: A. DESCRIPTION OF SERVICES The public services described below are proposed to be maintained by Community Facilities District No. 09M. The landscaping improvements include, but are not limited to, all landscaping material and facilities within each Improvement Area. These improvements include turf, ground cover, shrubs, trees, plants, irrigation and drainage systems, ornamental lighting structures, masonry walls or other fencing, trails, and associated appurtenant facilities located within the streetscape (parkway, median and slope perimeter landscaping) surrounding the development and trails, perimeter wails, and perimeter fencing in the development. The storm water quality improvements include, but are not limited to, maintenance of ali storm water quality improvements within each Improvement Area. These services include the maintenance, repair, and replacement of storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, Vactor truck and similar facilities. Both the landscape maintenance and storm drain maintenance allow for the collection of reserve fund and administration costs. Landscaping Maintenance Olympic Parkway (Between Eastlake and Hunte Parkway) · Medians - Prorata share not to exceed 50% · South side of parkway · Slopes Eastlake Parkway (Between Olympic Parkway and Hunte Parkway) · Medians - 100% until adjacent development to the west occurs and a prorata share not to exceed 50% thereafter · East side of parkway · Slopes Hunte Parkway (Between Olympic Parkway and Eastlake Parkway) MuniFinancial Page 2 City of Chula Vista Community Facilities District No. 09M CHU~ V~A · Medians - 100% until adjacent development to the south occurs and a prorata share not to exceed 50% thereafter · North side of parkway · Trails · Slopes Slopes south/east of Hunte Parkway (Between Olympic Parkway and the SDG & E Easement) Pedestrian Bridges · ' Prorata share of bridge between Village Eleven and Village Ten · Prorata share of bridge between Village Eleven across Eastlake Parkway to the Eastern Urban Center Accent Paving · Kestrai Falls at Eastlake Parkway · Eveningstar at Hunte Parkway · Crossroads at Eastlake Parkway · Hiddenpath at Hunte Parkway · Birch at Eastlake Parkway · Exploration Falls at Hunt Parkway · Exploration Falls at Olympic · Discovery Falls at Hunte Parkway Parkway · Windingwalk at Olympic Parkway Perimeter Walls & Fencing · Perimeter walls within perimeter slopes adjacent to Olympic Parkway (including block wall and lodge pole fencing} · Perimeter walls within perimeter slopes adjacent to Eastlake Parkway (including block wall and lodge pole fencing} · Perimeter walls within perimeter slopes adjacent to Htmte Parkway (including block wall and lodge pole fencing) Lighting · Entry monument lighting · Pedestrian bridge lighting Storm Water Quality Maintenance · Western Basin (Prorata share) · Eastern Basin MuniFinancial Page 3 City of Chula Vista Community Facilities District No. 09M CHUL4 VISTA Facilities and devices directly related to removal of contaminants and solids from storm water throughout the Improvement Area including but not limited to storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and similar facilities. SUBSTITUTION OF FACILITES The description of the Facilities and Services, as set forth above, is general in its nature. The final nature and location of the Facilities and Services wili be determined upon the preparation of final plans and specifications. The final plans may show substitutes in lieu of, or modification to, the proposed Facilities and Services in order to provide the public facilities necessitated by development occurring in the District, and any such substitution shall not be a change or modification in the proceedings as long as such substitute facilities and services serve a function or provide a service substantially similar to that function served or the service provided by the Facilities and Service described above. MuniFinancial Page 4 City of Chula Vista Community Facilities District No. 09M CHUL~ B. BOUNDARIES OF COMMUNITY FACILITIES DISTRICT The boundaries of CFD No. 09M coincide with previously established parcels as shown on the latest County Assessor maps or approved parcel maps and include all properties on which special taxes may be levied to pay for the costs of services. The boundaries of CFD No. 09M are described on "Exhibit A", reduced scale maps entitled "Proposed Boundary Map of Community Facilities District No. 09M' which are attached hereto and incorporated herein. A full-scaIe map is on file with the Clerk of the City of Chula Vista and was recorded with the County Recorder, County of San Diego in Book 37 page 14 in the Book of Maps of Assessment and Community Facilities Districts, Instrument Number 2003-0221282. C. COST ESTIMATES FOR SERVICES The establishment of CFD No. 09M was required to fund the perpetual operation and maintenance of slopes, medians, parkways, trails, perimeter walls, perimeter fencing and storm water treatment facilities associated with Village Il, Brookfield Shea Otay. The initial budget is estimated to be approximately $886,739. For the estimated location of the improvements and a more detailed cost estimate, please refer to "Exhibit B". D. RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES The Resolution of Intention 0Resolution No. 2003-056) generally sets forth the rate and method of apportionment of the special tax, which allows each property owner within the proposed CFD to estimate the annual amount that would be required for payment if a special tax were levied. For particulars of the rate and method of apportionment, see "Exhibit C', Rate and Method of Apportionment of Special Tax. MuniFinancial Page 5 Ciey of Chula Yb~a Community Facilities District No. 09M E. GENERAL TERMS AND CONDITIONS CHUL~ VISTA Services The description of the Services, as set forth herein, is general in nature. The final nature and location of the facilities that will be maintained will be determined upon the preparation of final plans and specifications or the approval of services. F. CONCLUSION Based on information provided by, and discussions with, the Agency and the property owners, the Services and Facilities listed in this Report are those that are necessary to meet increased demands placed on the Agency as a result of development occurring within the boundaries of the City of Chula Vista. Further, it is my opinion that the special tax rate and method of apportionment as set forth in "Exhibit C" are equitable and are not discriminatory or arbitrary and permit a purchaser of property subject to the special tax a fair means of determining his or her obligation. MuniFinancial By: Lyn Gruber MuniFinanc~l Page 6 City of Chula Vista Community Facilities District No. 09M CHULA Yb'TA EXHIBIT A BOUNDARIES OF DISTRICT AND BOUNDARY MAP Boundaries of District: The exterior boundaries of CFD No. 09M are shown on that certain map now on file in the Office of the City Clerk entitled "Proposed Boundary Map Community Facilities District No. 09M". This map indicates by a boundary line the extent of the territory included in proposed CFD No. 09M, and shall govern for all details as to the extent of CFD No. 09M. The parcels of real property within CFD No. 09M are described more particularly on the Assessor Parcel Maps and recorded Parcel Maps that are on file in the office of the San Diego County Assessor and are incorporated into this Report by reference. Boundary Map: A reduced copy of the Boundary Map follows. The original of such map is on file in the Office of the City Clerk and in the records of the County Recorder, County of San Diego, and State of California. Site Location: Village 11 is proposed to contain approximately 1,297 single-family detached homes, 661 condominium/townhome units, 315 apartments, 10 acres of multi-use property, and 9.3 acres of Community Purpose Facility (~CPF~) property. Village 11 is located south of Olympic Parkway, east of Eastlake Parkway, and north and west of Hunte Parkway. MuniFinancial Page A- I City of Chula Vista Community Facilities District No. 09M CHUL~ VISI'A zo mm_ MuniFinancial Page A-2 cit~ of Chu~ ~/ista Community Facilities District No. 09M CHUIA VISTA EXHIBIT B COST ESTIMATES I. LANDSCAPE MAINTENANCE BUDGET Cost Total Amount Units Per Duration Annual Cost Olympic Parkway - EastLake Parkway to Hunte Parkway Planted Area- Median 86,285 S.F. $ 0.540 Yr $ 46,594 Planted Area - Slopes 311,950 S.F. $ 0.240 Yr 74,868 Planted Area- Parkways 106,266 S.F. $ 0.470 Yr 49,945 Slope Trees 256 Each $ 55.00 Yr 14,080 6' Block Wall 4,531 L.F. $ 0.830 Yr 3,761 Lodge Pole Fencing 43 L.F. $ 1.500 Yr 65 Total $ 189,312 Phase 1 - East]Lake Parkway Planted Area - Median 3,635 S.F. $ 0.540 Yr $ 1,963 Planted Area - Slopes 47,241 S.F. $ 0.240 Yr 11,338 Median Hardscape 6,890 S.F. $ 0.240 Yr 1,654 Planted Area- Parkways 54,452 S.F. $ 0.470 Yr 25,592 Median Trees 5 Each $ 55.00 Yr 275 Parkway Trees 32 Each $ 55.00 Yr 1,760 Slope Trees 47 Each $ 55.00 Yr 2,585 6" Block Wall 845 L.F. $ 0.830 Yr 701 Total $ 45,868 Phase 1 - Hunte Parkway Planted Area- Median 5,552 S.F. $ 0.540 Yr $ 2,998 Planted Area- Slopes 52,554 S.F. $ 0.240 Yr 12,613 Median Hardscape 7,629 S.F. $ 0.240 Yr 1,831 Planted Area- Parkways 22,593 S.F. $ 0.470 Yr 10,619 Planted Area- Parkways (Native) 15,450 S.F. $ 0.470 Yr 7,262 Median Trees 9 Each $ 55.00 Yr 495 Parkway Trees 21 Each $ 55.00 Yr 1,155 Slope Trees 37 Each $ 55.00 Yr 2,035 6' Block Wall 835 L.F. $ 0.830 Yr 693 Lodge Pole Fencing 1,090 L.F. $ 1.500 Yr 1,635 D.G. Path (adjacent to preserve) 1,100 L.F. $ 0.057 Yr 63 Total $ 41,398 Phase 2 - EastLake Parkway Planted Area - Median 21,117 S.F. $ 0.540 Yr $ 11,403 MuniFinancial Page B-1 City of Chula Vista Community Facilities District No. 09M /6-/q £HUIA ¥1~ Cost Total Amount Units Per Duration Annual Cost Planted Area - Slopes 131,067 S.F. $ 0.240 Yr 31,456 Planted Area- Parkways 22,696 S.F. $ 0.470 Yr 10,667 Median Trees 20 Each $ 55.00 Yr 1,100 Parkway Trees 62 Each $ 55.00 Yr 3,410 Slope Trees 51 Each $ 55.00 Yr 2,805 6' Block Wall 1,670 L.F. $ 0.830 Yr 1,386 Total $ 62,227 Phase 2 - Hunte Parkway Planted Area- Median 43,605 S.F. $ 0.540 Planted Area- Slopes 222,730 S.F. $ 0.240 Planted Area- West Parkway 20,411 S.F. $ 0.470 Planted Area- East Parkway (Native) 24,087 S.F. $ 0.470 Median Trees 60 Each $ 55.00 Parkway Trees 57 Each $ 55.00 Slope Trees 93 Each $ 55.00 6' Block Wall 2,810 L.F. $ 0.830 Lodge Pole Fencing 4,430 L.F. $ 1.500 D.G. Path 4,430 L.F. $ 0.057 Total Yr $ 23,547 Yr 53,455 Yr 9,593 Yr 11,321 Yr 3,300 Yr 3,135 Yr 5,115 Yr 2,332 Yr 6,645 Yr 253 $ 118,696 Yr $ 15,284 Yr 42,524 Yr 12,908 Yr 1,265 Yr 4,235 Yr 3,190 Yr 1,536 Yr 525 $ 81,466 Yr $ 31,287 Yr 89,313 Yr 13,796 Yr 15,092 Yr 3,025 Yr 3,795 Yr 8,140 Yr 880 Yr 2,689 Yr 25 Yr 4,500 Yr 1,560 Yr 171 Phase 3 - EastLake Parkway Planted Area - Median 28,304 S.F. $ 0.540 Planted Area - Slopes 177,182 S.F. $ 0.240 Planted Area- Parkways 27,463 S.F. $ 0.470 Median Trees 23 Each $ 55.00 Parkway Trees 77 Each $ 55.00 Slope Trees 58 Each $ 55.00 6' Block Wall 1,850 L.F. $ 0.830 Lodge Pole Fencing (Adjacent to Preserve) 350 L.F. $ 1.500 Total Phase 3 - Hunte Parkway Planted Area - Median 57,939 S.F. $ 0.540 Planted Area - Slopes 372,136 S.F. $ 0.240 Planted Area- West Parkway 29,353 S.F. $ 0.470 Planted Area- East Parkway (Native) 32,110 S.F. $ 0.470 Median Trees 55 Each $ 55.00 West Parkway Trees 69 Each $ 55.00 Slope Trees 148 Each $ 55.00 Slopes east/south of Hunte (Native) 16 Acres $ 55.00 6' Block Wall 3,240 L.F. $ 0.830 Low Block wall 50 L.F. $ 0.490 Lodge Pole Fencing (Adjacent to Preserve) 3,000 L.F. $ 1.500 Lodge Pole Fencing (Up CFD Slopes) 1,040 L.F. $ L500 D.G. Path (Adjacent to Preserve) 3,000 LF. $ 0.057 MuniFinancial Page B-2 City of Chula Vista Community Facilities District No. 09M Total Pedestrian Bridge Maintenance Monument Electricity Minor Monuments Major Monuments Total Accent Pavement Total Landscape Maintenance II. Storm Water Maintenance Budget Village 11 Storm water Maintenance Drainpacs - Maintenance Drainpacs - Replace Filter Bag Total CDS & Vortechnics Units EastLake - Kestrel Falls - Maintenance EastLake - Kestrel Falls - Replace Screen EastLake - Birch - Maintenance EastLake - Birch - Replace Screen EastLake - Hume - Maintenance EastLake - Hunte - Replace Screen Western Basin Annual Silt Removal Annual Vegetation Removal Annual Engineering Inspection Periodic City Inspection Drop Structure Monitoring & Maintenance 30" Bypass line Inspection & Maintenance Maintenance Road Cleaning/Blading Eastern Basin Annual Silt Removal Aonual Vegetation Removal Annual Engineering Inspection Periodic City Inspection MuniFinanc~l Amount 18 3 18,000 Number of Units Page B-3 Units 11 $ 11 $ CHUbs. VISTA Cost Total Per Duration Annual Cost $ 174,272 $ 1,120 Yr $ 1,120 $ 45 $ 810 130 390 $ 1,200 $ 0.010 $ 180 $ 715,739 Cost per Services Total Service per Year Annual Cost 100 4 4,400 200 0.5 1,100 $ 5,500 1 $ 750 4 3,000 1 $ 800 0.05 40 1 $ 750 4 3,000 1 $ 800 0.05 40 1 $ 1,250 4 5,000 i $ 1,000 0.05 50 $ 11,080 8005 15 1 12,000 1 $ 2,100 1 2,100 1 $ 1,000 1 1,000 1 $ 1,200 1 1,200 2 $ 1,600 0.5 1,600 1 $ 4,000 1 4,000 1 $ 1,900 1 1,900 $ 23,800.00 650 $ 15 1 9,750 1 $ 1,400 1 1,400 1 $ 1,000 1 1,000 1 $ 1,200 1 1,200 $ 13,350.00 - City of Chula Vista Community Facilities District No. 09M CHU~ VISTA Vactor Truck I $ 13,126 0.13 $ 1,706.38 Total Storm Water Maintenance TOTAL ANNUAL LANDSCAPE AND STORM WATER MAINTENANCE $ 55,436 $ 771,176 III. ADMINISTRATIVE EXPENSES $ 35,000 IV. Reserve $ 80,618 V. Total Annual Cost $ 886,793 (1) Vactor Truck - ~Cost per Service" represents the Village 11 proportionate shard of the replacement Storm Water Quality Vactor unit. "Service per Year" represents the annual factor, that when multiplied by the Cost per Service, results in an annual amount paid into a fund contributed to by certain maintenance CFD's in the City of Chula Vista that will be used to replace the existing Vactor unit using an eight year cycle. SUBSTITUTION OF SERVICES AND FACILITIES The description of the Services and Facilities, as set forth herein, is general in its nature. The final nature and location of the Services and Facilities will be determined upon the preparation of final plans and specifications. The final plans may show substitutes in lieu of, or modification to, the proposed Services and Facilities in order to provide the public Services and Facilities necessitated by development occurring in CFD No. 09M, and any such substitution shall not be a change or modification in the proceedings as long as such substitute Services and Facilities serve a function or provide a service substantially similar to that function served or the service provided by the Services and Facilities described in this Report. MuniFinancial Page B-4 ~ity of Chula Vista Community Facilities District No. 09M £HUL~ VISTA MuniFinancial Page B-5 City of Chula Vista Community Facilities District No. 09M EXHIBIT C CHUIA VISTA RATE AND METHOD OF APPORTIONMENT COMMUNITY FACILITIES DISTRICT NO. 09M RATE AND METHOD OF APPORTIONMENT (Village 11, Brookfield Shea) A Special Tax of Community Facilities District No. 09M (Village 11, Brookfield Shea) of the City of Chula Vista ("CFD") shall be levied on all Assessor's Parcels in the CFD and collected each Fiscal Year commencing in Fiscal Year 2003-04 in an amount determined through the application of the rate and method of apportionment of the Special Tax set forth below. All of the real property in the CFD, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided. A. DEFINITIONS The terms hereinafter set forth have the following meanings: "'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 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, other final map, other parcel map, other condominium plan, or functionally equivalent map or instrument recorded in the Office of the County Recorder. The square footage of an Assessor's Parcel is equal to the Acreage multiplied by 43,560. "Act" means the Mello-Roos Communky Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2 of Title 5 of the Government Code of the State of California. "Administrative Expenses" means the actual or estimated costs incurred by the City, acting for and on behalf of the CFD as the administrator thereof, to determine, levy and collect the Special Taxes, including salaries of City employees and a proportionate amount of the City's general administrative overhead related thereto, and the fees of consultants and legal counsel providing services related to the administration of the MuniFinancial Page C. 1 City of Chula Vista Community Facilities District No. 09M CHUL~ VI~A CFD; the costs of collecting installments of the Special Taxes; and any other costs required to administer the CFD as determined by the City. "Approved Property" means all Assessor's Parcels of Taxable Property: (i) that are included in an 'A' Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots thereon, that were recorded prior to the March 1" preceding the Fiscal Year in which the Special Tax is being levied, and (ii) that have not been issued a building permit prior to the March Y' preceding the Fiscal Year in which the Special Tax is being levied. "Assessor's Parcel" means a lot or parcel shown in an Assessor's Parcel Map with an assigned assessor's parcel number. "Assessor's Parcel Map" means an official map of the Assessor of the County designating parcels by assessor's parcel number. "CFD Administrator" means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement'and providing for the levy and collection of the Special Taxes. "CFD" means Community Facilities District No. 09M of the City of Chula Vista. "City" means the City of Chula Vista. "City Clerk" means the City Clerk for the City of Chula Vista or his or her designee. "City Manager" means the City Manager for the City of Chula Vista or his or her designee. "Community Purpose Facility Property" or "CPF Property" means all Assessor's Parcels which are classified as community purpose facilities and meet the requirements of City of Chula Vista Ordinance No. 2452. "Council" means the City Council of the City of Chula Vista, acting as the legislative body of the CFD. "County" means the County of San Diego, California. "Developed Property" means all Taxable Property for which a building permit was issued after January 1, 2002, but prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. "Density" means for each Assessor's Parcel of Residential Property the number of Dwelling Units per gross acre determined pursuant to those provisions of Ordinance ~uniFinancial Page C.2 City °f Ch ula Vista Community Facilities District No. 09M CHULA VISTA No. 2866, in effect as of Decemb'er 17, 2002, that provide for the calculation of density for purposes of calculating Transportation Development Impact Fees. "Dwelling Unit" means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. "Final Subdivision Map" means a subdivision of property creating single family residential buildable lots by recordation of a final subdivision map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. "Fiscal Year" means the period starting July 1 and ending on the following June 30. "Land Use Class" means any of the classes listed in Table I or Table 2. "Landscape Maintenance" means the labor, material, administration, personnel, equipment and utilities necessary to maintain landscaped improvements within the public right-of-ways, parkways, slopes, wetlands and other public easements throughout the CFD. "Landscape Maintenance Requirement" means, for any Fiscal Year in which Special Taxes are levied, the amount equal to the budgeted costs for Landscape Maintenance applicable to the CFD for such Fiscal Year. "Maximum Special Tax" means the maximum Special Tax, determined in accordance with Section C below, that may be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property. "Mixed Use Property" means all Assessor's Parcels that have been classified by the City to allow both Residential Property and Non-Residential Property uses on each such Assessor's Parcel. For an Assessor's Parcel of Mixed Use Property, each Land Use Class thereon is subject to taxation pursuant to the provisions of Section C regardless of the geographic orientation of such Land Use Classes on such Assessor's Parcel. "Multi-Family Property" means all Assessor's Parcels of Developed Property for which a building permit has been issued for a residential structure consisting of two or more residential units that share common walls, including, but not limited to, duplexes, triplexes, townhomes, condominiums, and apartment units. MuniFinancial Page C-3 City of Chula Vista Community Facilities District No. 09M CHUIA VISTA "Non-Residential Property" means all 'Assessor's Parcels of Developed Property for which a building permit(s) has been issued for a structure or structures for non- residential use. "Operating Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to pay for Landscape Maintenance and Storm Water Quality Maintenance and Administrative Expenses. "Operating Fund Requirement" means, for any Fiscal Year, the sum of the applicable Landscape Maintenance Requirement and the applicable Storm Water Quality Maintenance Requirement. "Property Owner Association Property" means any property within the CFD boundaries that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. "Proportionately" means in a manner such that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Assessor's Parcels of Taxable Property within each Land Use Class. "Public Property" means any property within the CFD boundaries that is, at the time of the CFD formation, expected to be used for any public purpose and is owned by or dedicated to the federal government, the State, the County, the City or any other public agency. "Reserve Fund" means a fund that shall be maintained for the CFD for each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, reserve capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of Special Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. "Reserve Fund Requirement" means an amount equal to up to 100% of the Operating Fund Requirement for any Fiscal Year. "Residential Property" means all Assessor's Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one residential dwelling unit. "Special Tax" means the Special Tax levied pursuant to the provisions of sections C and D below in each Fiscal Year on each Assessor's Parcel of Developed Property and Undeveloped Property in the CFD to fund the Special Tax Requirement. MuniFinancial Page C-4 City of Chula Vista Community Facilities District No. 09M CHUJA VISI'A "Special Tax Requirement" means that amount required in any Fiscal Year for the CFD to: (a) (i) pay the Landscape Maintenance Requirement; (ii) pay the Storm Water Quality Maintenance Requirement; (iii) pay reasonable Administrative Expenses; (iv) pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund Requirement; (v) pay for reasonably anticipated delinquent Special Taxes based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less (b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if any, in the Reserve Fund above the Reserve Fund Requirement. "State" means the State of California. "Storm Water Quality Maintenance" means the maintenance of detention basins, storm drains, catch basin inserts, hydrodynamic devices, infiltration basins, and all other facilities that are directly related to storm water quality control throughout the CFD. "Storm Water Quality Maintenance Requirement" means for any Fiscal Year an amount equal to the budgeted costs for Storm Water Quality Maintenance applicable to the CFD for the current Fiscal Year in which Special Taxes are levied. "Taxable Property" means all of the Assessor's Parcels within the boundaries of the CFD that are not exempt from the Special Tax pursuant to law or as defined below. "Tax-Exempt Property" means an Assessor's Parcel not subject to the Special Tax. Tax-Exempt Property includes: (i) Public Property, or (ii) Property Owner Association Property, or (iii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. "Taxable Property Owner Association Property" means all Association Property which is not exempt from the Special Tax pursuant to Section E below. "Undeveloped Property" means, for each Fiscal Year, all Taxable Property not classified as Developed Property, Approved Property or Taxable Property Owners Association Property. B. ASSIGNMENT TO LAND USE CATEGORIES Each Fiscal Year using the definitions above, all Taxable Property within the CFD shall be classified as Developed Property, Approved Property, Undeveloped Property or Taxable Property Owners Association Property, and shall be subject to Special Taxes pursuant to Sections C and D below. Developed Property shall be further assigned to a Land Use Class as specified in Table 1. The Land Use Class of each MuniFinancial Page C-5 City of Chula Vista Community Facilities District No. 09M Co CHULA VISTA Assessor's Parcel of Residential Property or Mixed Use Property shall be determined based on its Density. Once the Land Use Class of an Assessor's Parcel of Residential Property or Mixed Use Property is determined it cannot be changed. Assessor's Parcels of CPF Property not classified as exempt in accordance with Section E below shall be taxed as Non-Residential Property when such Assessor's Parcel is classified as Developed Property. MAXIMUM SPECIAL TAX RATE 1. Developed Property TABLE 1 Maximum Special Tax for Developed Property Community Facilities District No. 09M Land Use Class 1 2 3 4 Description Residential Property Residential Property Residential Property Non-Residential Property Density (DU/Acre) 0to 8 > 8 to 20 Greater than 20 N/A Maximum Special Tax $470.28 per Dwelling Unit $376.22 per Dwelling Unit $282.16 per Dwelling Unit $1,805.87 per Acre Multiple Land Use Classes In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Class. The Maximum Special Tax that may be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax levies that may be levied on all Land Use Classes located on that Assessor's Parcel. The CFD Administrator's shall determine the allocation to each Land Use Class. Approved Property, Undeveloped Property and Taxable Property Owner Association Property The Maximum Special Tax for Approved Property, Undeveloped Property and Taxable Property Owner Association Property shall be $1,805.87 per Acre Annual Escalation of Maximum Special Tax The Maximum Special Tax as shown in the tables above that may be levied on each Assessor's Parcel in The CFD shall be increased each Fiscal Year MuniFinancial Page C-6 City of Chula Vista Community Facilities District No. 09M CHUIA VISTA beginning in Fiscal Year 2004-05 and thereafter by a factor equal to the annual percentage change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items). METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing with Fiscal Year 2003-04, and for each following Fiscal Year, the Council shall levy the CFD Special Tax at the rates established pursuant to steps 1 through 4 below so that the amount of the Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: First: The Special Tax shall be levied proportionately on each Assessor's Parcel of Developed Property up to 100% of the applicable Maximum Special Tax; Second: If additional monies are needed to satisfy the Special Tax Requirement after the first step has been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the Maximum Special Tax for Approved Property; Third: If additional monies are needed to satisfy the Special Tax Requirement after the first two steps have been completed, the Special Tax shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for Undeveloped Property; Fourth: If additional moneys are needed to satisfy the Special Tax Requirement after the first three steps have been completed, the Special Tax shall be levied proportionately on each Assessor's Parcel of Taxable Property Owner Association Property at up to 100% of the Maximum Special Tax for Taxable Property Owner Association Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor's Parcel of Residential Property for which an occupancy permit for private residential use has been issued be increased by more than ten percent annually up to the Maximum Special Tax as a consequence of delinquency or default by the owner of any other Assessor's Parcel within the CFD. MuniFinancial Page C-7 City of Chula Vista Community Facilities District No. 09M CHULA VISTA EXEMPTIONS The CFD Administrator shall classify as exempt property (i) Assessor's Parcels defined as Public Property, and (ii) Assessor's Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement. The CFD Administrator shall classify as exempt property those Assessor's Parcels defined as Property Owner's Association Property provided that no such classification would reduce the sum of all taxable Property to less than 206.13 Acres. Assessor's Parcels defined as Property Owner Association Property that cannot be classified as exempt property will be classified as Taxable Property Owner Association Property and shall be taxed as part of the fourth step in Section D. The CFD Administrator will assign Tax-Exempt status in the chronological order in which property becomes exempt. Fo APPEALS Any landowner or resident who pays the Special Tax and believes that the amount of the Special Tax levied on their Assessor's Parcel is in error shall first consult with the CFD Administrator regarding such error. If following such consultation, the CFD Administrator determines that an error has occurred, the CFD Administrator may amend the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action, if any by the CFD Administrator, the landowner or resident believes such error still exists, such person may file a written notice with the City Clerk of the City appealing the amount of the Special Tax levied on such Assessor's Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy of such notice to the City Manager who shall establish as part of the proceedings and administration of the CFD, a special three-member Review/Appeal Committee. The Review/Appeal Committee may establish such procedures, as it deems necessary to undertake the review of any such appeal. The Review/Appeal Committee shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any landowner or resident appeals, as herein specified. The decision of the Review/Appeal Committee shall be final and binding as to all persons. MuniFinancial Page C-8 City of Chula Vista Community Facilities District No. 09M CHUL~ YL~A MANNER OF COLLECTION Special Taxes levied pursuant to Section D above shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the CFD Administrator may directly bill the Special Tax, may collect Special Taxes at a different time or in a different manner if necessary to meet the financial obligations of the CFD or as otherwise determined appropriate by the CFD Administrator. TERM OF SPECIAL TAX Taxable Property in the CFD shall remain subject to the Special Tax in perpetuity. MuniFinancial Page C-9 City of Chula Vista Community Facilities District No. 09M /b'WP RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FORMiNG AND ESTABLISHiNG COMMUNITY FACILITIES DISTRICT NO. 09-M (VILLAGE 11 BROOKFIELD SHEA OTAY) AND AUTHORIZiNG SUBMITTAL OF LEVY OF SPECIAL TAXES WITHiN THE CFD TO THE QUALIFIED ELECTORS WHEREAS, a public hearing has been held and concluded, and the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA (the "City Council"), now desires to proceed with the establishment of a community facilities district, 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"). Such Community Facilities District shall hereinafter be referred to as COMMUNITY FACILITIES DISTRICT NO. 09-M (VILLAGE 11 BROOKFIELD SHEA OTAY) (the "District"); and, WHEREAS, notice of a public heating relating to the establishment of the District, the extent of the District, the financing of certain types of services and all other related matters has been given, and a Community Facilities District Report, as ordered by this City Council, has been presented to this City Council and has been made a part of the record of the hearing to establish such District; and, WHEREAS, all communications relating to the establishment of the District, the proposed services and the rates and methods of apportionment of the special tax proposed to be levied within 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 within the District; 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 true 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 ~ga- 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, 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 within the District for each of the ninety (90) days preceding the close of the public hearing, therefore, pursuant to the Act the qualified electors of the District shall be the landowners of such District as such term is defined in Government Code Section 53317(0 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, as now submitted, shall stand as the Community Facilities District Report for all future proceedings and all terms and contents are approved as set forth therein. SECTION 4. Name of District. This legislative body does hereby establish and declare the tbrmation of the Community Facilities District known and designated as "COMMUNITY FACILITIES DISTRICT NO. 09-M (VILLAGE 11 BROOKFIELD SHEA OTAY)." SECTION 5. Boundaries of the District. The boundaries of the District are generally described as follows: All property within the boundaries of COMMUNITY FACILITIES DISTRICT NO. 09- M (VILLAGE 11 BROOKFIELD SHEA OTAY)), as shown on a boundary map as previously approved by this legislative body, such map designated by the name of this 2 Community Facilities District, a copy of which is on file in the Office of the City Clerk. The boundary map of the proposed District has been filed pursuant to Sections 3111 and 3113 of the Streets and Highways Code of the State of California in the Office of the County Recorder of the County of San Diego, at Page 37of Book 14 of the Book of Maps of Assessment and Community Facilities Districts for such County. SECTION 6. Tvoes of Services. It is the intention of this City Council to finance certain services that are in addition to those provided in or required for the territory within the District and will not be replacing services already available. A general description of the services to be provided is as follows: The maintenance of (a) landscaped areas within the public rights-of-ways and other public easements throughout the District including medians, parkways, slopes and trails, (b) pedestrian bridges, (c) perimeter walls and fencing and (d) facilities that are directly related to storm water quality control throughout the District. Such maintenance shall include, but not be limited to, the provision of all labor, material, administration, personnel, equipment and utilities necessary to maintain such landscaped areas and such storm water quality control facilities. It is the intention of the City Council to finance all direct, administrative and incidental annual costs and expenses necessary to provide the authorized maintenance and services. For a full and complete description of the public services, reference is made to the final Community Facilities District Report, a copy of which is on file in the Office of the City Clerk. For all particulars, reference is made to such Community Facilities District Report. SECTION 7. Special Tax. Except where funds are otherwise available special taxes, secured by recordation of a continuing lien against all non-exempt real property in the District, are hereby authorized, subject to voter approval, to be levied annually within the boundaries of such District to finance the services described in Section 6 above. Under no cimumstances will the special tax be increased as a consequence of delinquency or default by the owner of any other parcel or parcels used for private residential purposes by more than 10 percent. For further particulars as to the rate and method of apportionment of the special tax proposed to be levied within the District, reference is made to the attached and incorporated Exhibit "A", which sets forth in sufficient detail the method of apportionment to allow each landowner or resident within the District to clearly estimate the maximum amount that such person will have to pay for such services. The special taxes herein authorized shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency, as applicable for ad valorem taxes; however, as applicable, this legislative body may, by resolution, establish and adopt an alternate or supplemental procedure as necessary. Any special taxes that may not be collected on the County tax roll shall be collected 3 through a direct billing procedure by the Treasurer of the City of Chula Vista, acting for and on behalf of the District. Upon recordation of a Notice of Special Tax Lien pursuant to Section 3114.5 of the Streets and Highways Code of the State of California, a continuing lien to secure each levy of the special tax shall attach to all non-exempt real property in the District and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the legislative body ceases. SECTION 8. Sl~ecial Tax Accountability Measures. Pursuant to and in compliance with the provisions of Government Code Section 50075.1, this City Council hereby establishes the following accountability measures pertaining to the levy by the District of the special taxes described in Section 8 above: Each such special tax shall be levied for the specific purposes set forth in Section 7. above. The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in Section 7. above. 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. SECTION 9. Preparation of Annual Tax Roll. The name, address and telephone number of the office, department or bureau which will be responsible for preparing annually a current roll of special tax levy obligations by Assessor's parcel number and which shall be responsible for estimating future special tax levies pursuant to Section 53340.1 of the Government Code of the State of California, are as follows: Engineering Department City of Chula Vista 276 Fourth Avenue Chula Vista, CA 92010 (619) 691-5021 SECTION 10. Election. This legislative body herewith submits the levy of the special taxes to the qualified electors of the District, such electors being the landowners within the District with each landowner having one (1) vote for each acre or portion thereof of land which he or she owns within the District. This legislative body hereby further directs that the separate ballot propositions relating to the levy of the above referenced special taxes within the District be combined and 4 consolidated with the proposition set forth in Section 11 below relating to the establishment of an appropriations limit for the District. The proposition related to the levy of the special taxes shall, together with a proposition to establish an appropriations limit for the District, shall be submitted to the qualified voters at a special election to be held on (a) April 1, 2003 or (b) such other date as the qualified electors and the City Clerk may mutually agree and such election shall be a special election to be conducted by the City Clerk (hereinafter referred to as the "Election Official"). If the proposition for the levy of the special taxes receive the approval of more than two-thirds (2/3) of the votes cast on the proposition, the special tax thereby approved may be levied as provided for in this Resolution. SECTION 11. Ballot Proposals. The ballot proposals to be submitted to the qualified voters at the election shall generally be as follows: PROPOSITION A Shall the City of Chula Vista Community Facilities District No. 09-M (Village 11 Brookfield Shea Otay), subject to accountability measures set forth in Resolution No. , levy a special tax throughout such district pursuant to the rate and method of apportionment thereof set forth in such resolution (the "Rate and Method") for the purposes of financing the Special Tax Requirement as defined in the Rate and Method? PROPOSITION B Shall the City of Chula Vista Community Facilities District No. 09-M (Village 11 Brookfield Shea Otay) establish an Article XIIIB appropriations limit equal to $2,000,0007 SECTION 12. Vote. The appropriate mark placed on the line preceding the word "YES" shall be counted in favor of the adoption of the proposition, and the appropriate mark placed on the line preceding the word "NO" in the manner as authorized, shall be counted against the adoption of such proposition. SECTION I3. Election Procedure. The Election Official is hereby authorized to take any and all steps necessary for holding the above election. The Election Official shall perform and render all services and proceedings incidental to and connected with the conduct of the election, including but not limited to, the following: Prepare and furnish to the 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. 5 3. Furnish official ballots for the qualified electors of each Improvement Area of the District. ' Cause the official ballots to be presented to the qualified electors, as required by law. 5. Receive the returns of the election and supplies. Sort and assemble the election material and supplies in preparation for the canvassing of the returns. 7. Canvass the returns of the election. 8. Furnish a tabulation of the number of votes given in the election. Conduct and handle all other matters relating to the proceedings and conduct of the election in the manner and form as required by law. Presented by: Approved as to form by: Clifford Swanson Director of Engineering Ann Moore City Attorney J:\attorney\reso\CFD 09M Village 11 6 CITY COUNCIL AGENDA STATEMENT Meeting Date: 3/25/03 ITEM TITLE: Resolution of the City Council of the City of Chula Vista adopting a Mitigated Negative Declaration (IS-02-05) and approving Precise Plan, PCM-02-05, to allow for the redevelopment of an existing shopping center located at the intersection of Fourth Avenue and 'C' Street in a Central Commercial, Design (C-C-D) zoning district. The Applicant is Charles Miller, M.D., LLC. SUBMITTED BY: Director of Planning and Building/~/~ REVIEWED BY: City Manager(_P~ ~ ~ (4/Sths Vote: Y~.._No The project site has an irregular shape and is situated in the Central Commercial zoning district. The site currently contains various commercial and retail buildings and uses. The proposed project will eliminate some of the existing buildings and uses and introduce new buildings and uses while improving the site's appearance. However, the irregular shaped lot poses some development constraints because of the prevailing development standards for the zone. The Precise Plan will allow flexibility of the development standards that would enable the applicant to develop the lot. The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has prepared a Mitigated Negative Declaration for the Precise Plan project. The Resource Conservation Commission recommended adoption of the Mitigated Negative Declaration on December 2, 2002. BOARDS/COMMISSIONS RECOMMENDATION: On February 3, 2003, Precise Plan PCMq 02-05 was heard by the Design Review Committee, which voted 4-0 recommending approval without the proposed pylon sign on the corner. On March 12, 2003; the Precise Plan was heard before the Planning Commission, which voted 6-0, recommending.that the City Council adopt the Mitigated Negative Declaration and the Resolution approving Precise Plan PCM-02-05 with a pylon sign. RECOMMENDATION: That the City Council adopt the Mitigated Negative Declaration and Resolution PCM-02-05 for a Precise Plan for the redevelopment of the shopping center located at the intersection of Fourth and Third Avenues with a provision for freestanding sign on the corner no higher than 25 feet based on the findings and conditions contained therein. DISCUSSION: 1. Site Characteristics The project site consists of two parcels including a smaller parcel within the boundaries of an irregular shaped parcel. The total size of the project site is 2.67 acres (116,360 square feet) and is Page 2, Item: Meeting Date: 3/25/02 located at the southeast corner of the intersection at Fourth Avenue and the Third Avenue extension, which is a major intersection (see Locator Map Attachment 1). The site currently contains a variety of commercial and retail uses including two restaurants, a furniture store, two retail establishments, a drinking establishment and a multMenant retail building. The balance of the site consists of worn paving with minor landscaping. The City of Chula Vista General Plan considers this section of Fourth Avenue as a major gateway entry to the City's urban core from Highway 54 to the north. 2. Background The Precise Plan application was deemed complete on December 3, 2002, and was heard at the January 13, 2003, Design Review Committee meeting, which was followed by a special DRC workshop and second DRC meeting. The DRC expressed concerns for the Precise Plan's site and building design. The developer revised the project in response to most of the DRC's comments. The DRC was generally pleased with the revised site design and building compatibility, but remained concerned about the lack of a substantial improvement in appearance of the northwest corner, which is proposed to include a pylon sign. The DRC emphasized that the project site is located at a gateway entry into the City's urban core and believed that the proposed pylon sign should not dominate the design of the northwest corner. The applicant attempted to address the DRC's concern about the pylon sign by incorporating a trellis as an architectural feature for the base of the pylon sign and reducing the sign's height from 35 feet to 30 feet. The DRC remained concerned about the pylon sign, but was strongly supportive of the overall project. In order to not delay the project, the DRC voted to approve the project, but without the proposed sign. A condition requiring the applicant to obtain approval of a sign program for the site without the pylon sign was incorporated into the draft City Council Resolution. On March 12, 2003, the Planning Commission heard the project, Following testimony and discussion, the Commission believed that the proposed 30 foot tall pylon sign was appropriate, and modified the condition requiring a sign program to allow the proposed sign. The Commission voted 6-0 to recommend adoption of the Mitigated Negative Declaration and approval of the Precise Plan. 3. General Plan, Zoning and Land Use General Plan Zoning Site: Retail C-C-D North: Retail C-C South: High residential R-3 East: Retail C-O West: Parks & Recreation R-3 Current Land Use Various Retail/commercial uses Jack-In-The-Box and the DMV Apartments Professional Offices Eucalyptus Park Page 3, Item: [ 7 Meeting Date: 3/25/02 4. Proposal The project is a proposed redevelopment of the shopping center located at the southeast corner of the intersection at Fourth Avenue and Third Avenue extension (also known as 'C' Street). The project consists of: · The demolition of four existing buildings totaling 18,300 square feet of retail and a restaurant; · A new 14,880 square feet Sav-on Drug store; · A new 3,475 square foot retail building that includes a drive-thru store; · A 100 square foot ATM Kiosk; · Installation of landscaping throughout the site; and · 5,700 cubic yards of grading The exiting 5,000 square foot building and the La Fuente drive-thru restaurant will remain and be remodeled. In addition to the site's redevelopment, the applicant is proposing several off-site street improvements including: · Widening along Fourth Avenue; · Widening along the Third Avenue Extension north of the site; · Installing a median island in the Third Avenue Extension; · An 18-foot right-of-way dedication on Fourth Avenue; and · A 7-foot right-of-way dedication on Third Avenue Extension 5. Development Standards Standards Minimum Required Proposed Sav-on: 144.4 feet Starbucks: 69.10 feet Front Yard Setback 25 feet Kiosk: 8 feet* (E) Blg.: 23.2 feet* La Fuente: 22.10 feet* Ext. Side Yard Setback None Sav-on: 10 feet Int. Side Yard Setback None None Rear Yard Setback: None Sav-on: 16.7 feet Sav-on: 31.6 feet Starbucks: 26.5 feet Height: 45 feet (E) Big.: 22 feet La Fuente: 13.4 feet Parking: 140 spaces 128 spaces* *The Chula Vista Municipal Code (CVMC) Sections 19,56.040 and 041 allow flexibility of the CC zone standard development regulations. See the sections regarding Parking and Building Page 4, Item: Meeting Date: 3/25/02 Placement below for details. ANALYSIS: The project is a Precise Plan that proposes to redevelop the existing shopping center by demolishing existing buildings, constructing new buildings for retail uses, incorporating substantial landscaping and providing new and striped paving as well as off-site improvements. The project has been evaluated in accordance with the Chula Vista Municipal Code (CVMC), and the goals and objectives of Chapter 1, Subsection 7.4 of the General Plan relative to development at designated gateway entries into the City's urban core. The General Plan defines a gateway as a principal approach route into the city and what is seen along the route is an important part of the perception of the level of quality the city provides for its citizens. Subsection 8.1 states that Fourth Avenue is a major north-south connector through Central Chula Vista. The subject property has an irregular shape, which limits the applicant's ability to redevelop the site with a functional shopping center under the current development standards of the Central Commercial zone. The zoning issues are the number of parking spaces and front yard setbacks. Section 19.56.040 of the CVMC states that a Precise Plan allows diversification in the spatial relationship of land uses, density, buildings, structures, landscaping and open spaces and design review of architecture and signs through the adoption of specific conditions of approval for developmem of the property. Parking The site will contain a variety of retail/commercial uses that are subject to specific parking requirements. The project proposes approximately 21,850 square feet of retail floor space (Sav-on and un-named future tenants) and three drive-thru features (the existing La Fuente restaurant, the proposed Starbucks store and the Sav-on store). Section 19.62.050 of the CVMC requires the following minimum parking spaces for the project: Drive-in restaurants - 15 spaces Retail stores - 1 space per 200 square feet of floor space, The CVMC requires the project to provide approximately 140 parking spaces, but the project proposes only 128 spaces. The site's irregular shape and proposed project design limit the applicant's ability to meet the parking requirement. As a result, the applicant proposes to position the new buildings in an effort to resemble a cluster of buildings, and provide small parking lot areas that will enable shared parking between the uses on the site. This satisfies the City's Design Manual and staff believes that the applicant's shared parking proposal is a reasonable effort to address the parking issue. Page 5, Item: Meeting Date: 3/25/02 Building Placement Setbacks: The existing 5,000 square foot building, La Fuente restaurant, and proposed Kiosk encroach into the required front yard setback. The new sidewalk will reduce the front setback of the existing 5,000 square foot building from 23.2 feet to approximately 17.5 feet, and the La Fuente restaurant existing setback from 25 feet to 22.10 feet. The proposed 100 square foot Kiosk will be located approximately 2 feet from the front (north) property line near the major entry nearest to the intersection. Staff also believes that the existing and proposed encroachments are minor and will not affect the existing conditions on or off the site. Page III-2 of the Chula Vista Design Manual (CVDM) states that the placement of structures should consider the existing built context of the commercial area, the location of incompatible land uses, and the location of major generators. The following list identifies the proposed and existing buildings, which will remain on the site: · Sav-on: southwest corner · Multi-tenant building and existing 5,000 square-foot building: central area · La Fuente restaurant: east corner The shopping center's buildings will vary in size and configuration, and will be articulated in a linear pattern, each with a north entry orientation that will avoid site confusion and offer diversity. Access/Circulation/Noise Access to the site will be from one major driveway along Fourth Avenue and two major driveways along the Third Avenue extension. The Mitigated Negative Declaration that was prepared for the project did not identify any impact to the existing traffic and circulation pattern or volume. The access driveway locations are as follows: · Right entry/exit at north bound Fourth Avenue; · Right entry/exit on the Third Avenue extension; · Right and left entry/exit at the "T" intersection of North Glover and the Third Avenue extension; and · Right exit at east bound Third Avenue extension. The internal circulation pattern is influenced by the site's irregular shape; the Sav-on drive-thru feature; the Starbucks drive-thru store; the existing La Fuente drive-thru restaurant; and the proposed new building and parking layout. Vehicular traffic will access the shopping center at the two major driveways along the Third Avenue extension, and at the major driveway along Fourth Avenue. The minor driveway, located near the La Fuente restaurant, is a one-way exit only. The loading area for Sav-on is in' the proximity of residential development, which could Page 6, Item: Meeting Date: 3/25/02 potentially create a noise impact to the residential area located above the site on a hilltop. The Mitigated Negative Declaration requires a mitigation measure that restricts delivery hours to Sav- on, which would bring the potential noise impact below a significant level. The mitigation has been incorporated into the City Council Resolution as a condition of approval. In addition, landscaping will be placed at the rear of Sav-on that will provide a visual buffer. Gateway Treatment As noted in the Background Section, the design treatment of the northwest corner of the project has been the subject of much discussion. The project site is located at a designated gateway entry into Chula Vista's urban core. The applicant originally proposed a 35-foot pylon sign at the northwest corner of the site but subsequently reduced the height to 30 feet in an attempt to satisfy the DRC. Section 19.36.040(A)(2) states that the lot is allowed one freestanding sign that does not exceed 35 feet in height and 150 square feet of sign area that identifies up to five tenants. Section 19.36.040(E) states that the DRC may reduce sign areas based on the sign guidelines and criteria contained in the Design Manual. Staff did not initially oppose the proposed pylon sign because it would have been part of the overall improvement of the shopping center and would replace several existing nonconforming signs. However, the DRC rightly noted that page III-12 of the Design Manual states that low- profile monument signs are the preferred alternative for business identification whenever possible, and that freestanding pole and pylon signs are strongly discouraged. At a DRC workshop held on February 27 and at the March 3 DRC hearing the applicant was encouraged to redesign the proposed sign. The Planning Commission heard the precise plan on March 12, and, although staff in the written Planning Commission report pointed out the sign issue, the Commission in their review did not express concern over the height and design of the pylon sign. The applicant has recently proposed lowering the sign to a maximum height of 25 feet. In considering the applicant's proposal, staff relied upon comments made by the DRC during their meetings, which indicated that other types of freestanding signs could be appropriate depending upon their design. Although staff continues to support the determination of the DRC regarding the proposed pylon sign, we believe the now proposed lower profile sign would provide the desired identification for tenants while addressing the major concerns with the appearance of the corner. The draft resolution has been revised to include new language for Condition D. 7 (underlined) for Council consideration. CONCLUSION: Staff has worked closely with the applicant on the project initially through preliminary discussions, and on project details since the application was found to be complete in December 2002. The Page 7, Item: Meeting Date: 3/25/02 proposed redevelopment of the existing shopping center and the associated off-site improvements will greatly benefit the City and residents in the area. The only issue of contention has been the proposed pylon sign at the northwest corner. With the applicant's latest offer to further reduce the height of the sign, staff believes that the treatment of the northwest corner of the site would be in keeping with the City's Design Guidelines. The attached draft City Council Resolution reflects the Planning Commission' action on condition with the strikeout of one sentence, and modified language underlined that staff would recommend to allow the signage as recently proposed. FISCAL IMPACT: The project will replace several marginal retail uses with at least two national chain retail businesses. It is estimated that the upgraded shopping center will result in higher sales activity and therefore improve the sales tax revenue generated to the General Fund. ATTACHMENTS: 1. Locator Map 2. Notice of Decision for PCM~02-05 3. Planning Commission minutes from meeting of March 12 4. Planning Comlmssion Resolution PCM4)2~05 5-- Mitigated Negative Declaration/Initial Study &. Storm Water Project Review & Permitting Process Eucalyptus / Park Target CHULA LOCATOR VISTA PLANNING AND BUILDING DEPARTMENT NORTH h:~home~planning\cados~locators\PCM0205.cdr 8/15/01 PROJECT M D APPLICANT: . , CHULA VISTA, LLC PROJECT SEC of Fourth Ave. ADDRESS: and "C" Street SC. ALE: ~ FILE NUMBER: No Scale ! PCM-02-05 PROJECT DESCRIPTION: Proposal for new 15,176 square feetSav-on drugs and 1,189 square feet additional retail to remaining 8,700 square feet retail. Related Case: IS-02-005 CI1Y 0~ CHULA VISTA ATTACHMENT 2 Design Review Committee NOTICE OF DECISION On PCM-02-05 (4th & C Shopping Center) Notice is hereby given that the City of Chula Vista Design Review Committee has considered and recommended approval of application PCM-02-05, a Precise Plan for the redevelopment of an existing shopping center with the proposed pylon sign. The project includes: (1) demolition of four existing buildings totaling 18,300 square feet of retail space and a restaurant; (2) a new 14,880 square feet Sav-on Drag store; (3) a new 3,475 square foot retail building that includes a drive-thru Starbucks store; (4) a 100 square foot Kiosk; (5) new landscaping and paving; and (6) grading. The exiting 5,000 square foot building and the La Fuente drive-thru restaurant will be remodeled. The project site is located at the southeast comer at the intersection of Fourth and the Third Avenue extension in a Central Commercial, Design (C-C-D) zoning district. The Environmental Review Coordinator has reviewed the project proposal for compliance with the California Environmental Quality Act and has prepared a Mitigated Negative Declaration for the project. The Resource Conservation Commission (RCC) approved the Mitigated Negative Declaration on December 2, 2002. The Design Review Committee recommended adoption of the Mitigated Negative Declaration and approval of said request to the Planning Commission based upon the following findings of facts and evidence: That the proposed development is consistent with the development regulations of the CCD (Central Commercial within a Design Overlay District) zone, the General Plan and the California Environmental Quality Act (CEQA). The Chula Vista Municipal Code (CVMC) requires approximately 140 parking spaces for the project; the project proposes a total of 128 spaces. The existing 5,000 square foot building, La Fuente restaurant and proposed Kiosk encroach into the required front yard setback. Section 19.56.040 of the CVMC indicates that a Precise Plan allows diversification and flexibility of the applicable development regulations for the project. The applicant proposes to locate the new buildings close to the existing 5,000 square foot building resulting in a cluster the buildings and provide small clusters of parking lots that will enable shared parking between the uses on the site. The applicant's proposal is a reasonable effort to address the parking requirement, and the existing and proposed encroachments are minor, and will not affect the existing conditions on or off the site. The design features of the proposed renovations are consistent with, and are a cost effective method of satisfying, the City of Chula Vista Design Manual and Landscape Manual. The project site is situated at the intersection of Fourth Avenue and C Street. This area is a recognized gateway entry in to the City. The site design and architectural features of the proposed buildings are consistent with the City of Chula Vista Design Manual (CVDM). The Precise Plan includes a pylon sign. The CVDM strongly discourages such signs; however, the Chula Vista Municipal Code allows freestanding signs. Based on the above findings, the Design Review Committee recommends approval of the Precise Plan without the pylon sign and adoption of the Mitigated Negative Declaration for the draft City Council Resolution for Precise Plan PCM-02-05 as presented. PASSED AND APPROVED BY THE DESIGN REVIEW COMMITTEE OF THE CITY OF CHULA VISTA, CALIFORNIA, the 3rd day of February 2003, by the following vote, to-wit: AYES: NOES: ABSTAiN: ABSENT: ATTEST: John Schmitz, Zoning Administrator Rosemarie Rice, Design Review Committee Secretary J:~PLANNING\MICHAEL~DRC REPORTS\PCM-02-05 DECISION Iq-lO 2 ATTACHMENT 3 Planning Commission Minutes -4- March 12, 2003 6. PUBLIC HEARING: PCM 02-05; Precise Plan to allow for a redevelopment project for an existing shopping center. The project includes: (1)the demolition of four existing buildings; (2)a new Sav-On Drug store; (3) a new multi-tanant retail building that includes a drive-thru store; (4) a Kiosk; (5) new landscaping, and paving; (6) grading; and (7) exceptions to the parking and front yard setback requirements. The existing $,000 sf building and the LaFuente drive-thru restaurant will be remodeled. The project site is located at the intersection of Fourth Avenue and "C" Street in a Central Commercial Design zone district. Background: Michael Walker, Associate Planner reported that the preposal is to redevelop the shopping center located at the southeast corner of the intersection of Fourth Avenue and Third Avenue extension (also known as "C" Street). The project includes: · Demolition of 4 existing buildings · A new 14,880 sf Sav-on Drug Store · A new 3,475 sf retail building that includes a drive-thru store · A 100 sf ATM kiosk · Install landscaping through the site · 5,700 cubic yards of grading The existing 5,000 sf building and the La Fuente drive-thru restaurant will remain and be remodeled. Additionally, the applicant is proposing the following off-site street improvements: · Widening along Fourth Avenue · Widening along the Third Avenue extension north of the site · Installing a median island in the Third Avenue extension · An 18 foot right-of-way dedication on Fourth Avenue, and · A 7 foot right-of-way dedication on Third Avenue extension Although the Municipal Code allows freestanding signs, staff has incorporated a condition that requires the applicant to obtain an approved sign program without a pylon sign. Background: That the Planning Commission recommend to the City Council adoption of the Mitigated Negative Declaration and Resolution PCM 02-05 approving the project. Planning Commission Minutes - 5 - March 12, 2003 Public Hearing Opened 9:20. John Moot, 2512 Secret Canyon, Chula Vista, applicant's representative, stated that the project has been in the works for over two years, undergoing significant negotiations with the City as it relates to easement dedication and street improvements. Mr. Moot emphasized the much-needed upgrade to this urban area and gateway to the City. The project is well planned, with extensive landscaping throughout the project, attracting national tenants such as Sav-On Drug Store and Starbucks. He urged the Commission to approve the project. John Ziebarth, 800 W. Ivy St., San Diego, CA stated that as part of the negotiations with the City, they have agreed to make the necessary street improvements in order to satisfy the City General Circulation Element. Recognizing this location to be a gateway into the City, the project will incorporate 20,000 sf of lush landscaping throughout the project. The applicant is proposing to eliminate the two unattractive existing pylon signs and replacing it with an attractive architecturally compatible to the center's design, pylon sign, incorporating an arbor, trellis feature. Additionally, a proposal has been made suggesting the City incorporate a similar sign at the opposite southwest corner depicting a "We/come to Chula Vista" message, with the Eucalyptus Park name below it, thereby, tying together both corner signs. Mr. Ziebarth stated that the pylon sign is essential to the survival of the center and to attract major tenants. Public Hearing Closed. Commissioner O'Neill stated that, in fact, the City is committed to eliminating pole signs and non-conforming signs, particularly ih proposals to renovate old commercial centers, however, in his opinion the proposed sign, in no way, resembles the unattractive pylon pole signs. It is evident that the architectural elements incorporated into its design, i.e. the arbor trellis and tying it into the overall architectural design of the center creates an aesthetically pleasing, quality product, worthy of standing at the one of the City's gateways. MSC (O'Neill/Hom) (6-0) that the Planning Commission recommend to the City Council adoption of the Mitigated Negative Declaration and Resolution PCM 02-05 approving the project, striking the following sentence, "Said sign program shall not include a pylon sign." from the Council resolution on page 5, Condition #7. Motion carried. ATTACHMENT 4 RESOLUTION NO. PCM 02-05 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA RECOMMEDING THAT THE CITY COUNCIL ADOPT A MITIGATED NEGATIVE DECLARATION (IS-02-05) AND APPROVE PRECISE PLAN PCM-02-05 ALLOWING THE REDEVELOPMENT OF THE SHOPPING CENTER LOCATED AT THE INTERSECTION OF FOURTH AND THIRD AVENUES IN THE CENTRAL COMMERCIAL, DESIGN (C-C-D) ZONE. WHEREAS, a duly verified application for a conditional use permit was fried with the City of Chula Vista Planning Department on August 8, 2001, by Charles Miller, M.D., LLC ("Applicant"); and WHEREAS, said Applicant requests approval of a Precise Plan to allow the redevelopment of the shopping center located at the intersection of Fourth and Third Avenue to include: (1) the demolition of four existing buildings totaling 18,300 square feet of retail space and a restaurant; (2) a new 14,880 square feet Sav-on Drug store; (3) a new 3,475 square foot retail building that includes a drive-thru Starbucks store; (4) a 100 square foot Kiosk; (5) new landscaping and paving; and (6) grading. The existing 5,000 square foot building and the La Fuente drive-thru restaurant will be remodeled; and WHEREAS, the Environmental Review Coordinator, in compliance with the California Environmental Quality Act (CEQA) has prepared a Mitigated Negative Declaration; and WHEREAS, the Planning Director set the time and place for a hearing on said Precise Plan 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 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and WHEREAS, the hearing was continued the hearing was held at the time and place as advertised, namely February 19, 2003, and continued to March 12, 2003, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed; and WHEREAS, after considering all reports, evidence, and testimony presented at said public hearing with respect to the conditional use permit application, the Planning Commission voted 6-0 to recommend adoption of the Mitigated Negative Declaration and approval of the Precise Plan; and NOW, THEREFORE, BE IT RESOLVED THAT THE PLANNING COMMISSION does hereby recommend that the City Council adopt the attached Mitigated Negative Declaration and City Council Resolution approving Precise Plan (PCM-02-05) in accordance with the findings and subject to the conditions contained therein with the following modification to condition 7: The applicant shall apply for and obtain approval of a planned sign program from the Director of Planning and Building prior to the issuance of any grading or building permits. Said sign program shall not include a pylon sign. BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the City Council and the Applicant. PASSED AND APPROVED BY THE PLANNING COMMISSION OF THE CITY OF CHUEA VISTA, CALIFORNIA, this 12th day of March 2003, by the following vote, to wit: AYES: NOES: ABSTAIN: Russell Hall, Chair ATTEST: Diana Vargas, Secretary J:\Plannin g\Michael\PC C Reports\PCM-02-05 4th & C PC Reso - JS.doc ATTACHMENT Mitigated Negative Declaration PROJECT NAME: Fourth Avenue and "C" Sh-eet Commercial Center PROJECT LOCATION: Fourth Avenue and "C" Street ASSESSOR'S PARCEL NO.: 566-010-62 and 566-010-63 PROJECT .M~PLICAN-f: CASE NO.: M.D. Chula Vista, LLC IS-02-05 DATE OF DRAFT DOCUMENT: November 13, 2002 DATE OF RESOURCE CONSERVATION COMMISSION MEETING: December 2. 2002 DATE OF FINAL DOCUMENT: ' A. Proiect Sertin_* The project site consists of a 2.67-acre parcel located in an urbanized area in the central western pon/on of the ciu' of Chula Vista, at the southeast corner of Fourth Avenue and "C" Street/Third Avenue extension (see Exhibit A - Location Map). The site is currently developed as a commercial cemer comprised of 7 buildings including a restaurant, fast food and bar, totaling 27,006 square feet. I,-u'-nediately to the south lies a storm drain channel, separating the project site from an upward slope and multi-family residential development. Land uses surrounding the project site cor/iist of the following: North: No~hwest: South: East: West: B. Proiect Description Commercial retail uses (fast-food) and Department of Motor Veh/cles Office Commercial center (large retail ,uses) Multifamily residences Commercial retail uses Fourth Avenue and neighborhood park The proposed project consists of the de~olition of five of the seven ex/sting buildings On-site totaling 18,306 square feet. Two buildings remaining are the 700 square-foot quick serve drive-through restaurant and the 5,000 square-foot retail building. Proposed new construction consists of a 14,880 square-foot Sav-On drugstore with drive-through pharmacy, a 3,474 square-foot building comprised of 1,974 square feet of retail space and a 1,500 square-foot quick serve drive-through restaurant, and a I00 square-foot retail kiosk, totaling 18,454 square feet. The total square footage on the site would be reduced by 2,852 square feet, resulting in a total of 24,154 square feet (see Extu~oit B-Site Plan). The proposed project would contain three drive-throughs; the two new ones described above and an existing drive-through fast food restaurant. The redevelopment of the project site would include the installation of additional landscaped treatment areas both on-site and off-site, lighting, parking lot remodeling, new driveways, hardscape treatments, street widening and right-of-way improvements, fire hydrants, under~ound utilities, relocation of street lights, and relocation of the bus stop along the project site's Fourth Avenue frontage. 7lac proposed ~a~.{ng quantities are 5,700 cubic yards cut and 400 cubic yards fill, resulting in 5300 cubic yards of expon. 'Fac proposed project requires a Precise Plan to be considered by the Design Review Committee, Plarming Commission and City Council. C. Comnliance with Zonin¢, and Plans The existing zoning of the project.site is CCD Zone (Central Commercial Districdlh-ecise Plan) and the General Plan designation is CR (Commercial Retail). The prop?_ed pr_oject is consistent with the existing zoning and Gerieral Plan designation of the property. D. Public Comments On November 5, 2002, a Notice of Initial Study was circulated to property owners within a 500-foot radius of the project site. The public comment per/od ended on November 15, 2002. No public comments were received during the Notice of Initial Study public comment period. E. Identification of Environmental Effects .-~n Initial Study conducted by the City of Chula Vista (including an attached Environmental Checklist form) de*.ermined 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. Geovhvsical The project site h~ been previously ga/Jed and is developed with an existing commercial center. The preliminary __o~ading plans indicate the proponent plans to cut 5,700 cubic yards and fill 400 cubic yards, resulting in 5,300 cubic yards of export. According to the Engineering Division, grading to accommodate the proposed improvements 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 stand2rd engineering requirement. There are no known or suspected seismic hazards associated with the project site. The pr.o._iect site ties approximately 1.0 mile to the west of the La Nacion Fault Zone. The site ii.'not wi~ a mapped Earthquake Fault Zone. Therefore, project compliance with applicable Un/form Building Code standards wou.!d adequately address any building safety/seismic concerns. ~ The potential discharge of silt into the adjacent drainage channel during construction activities could result in siltation impacts downstream unless mitigated to a level of less than significance. Appropriate erosion control measures would be identified in conjunction with the preparation of f-mai grading plans and would be implemented during consia'uction. 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 during construction would either be developed o[' would be appropriately landscaped in compliance with the City Municipal Code, Sections 19.36.090 and 19.36.110. Compliance with BMPs and N'PDES Order No. 2001-01 would be required and would be monitored by the Engineering Division. Therefore, the .potential d/scharge of silt into the drainage channel would be reduced to a level of less than significance. Compliance with the mitigation measures contained below in Section F would reduce this potentially si~ificant impact to below a lev&l of significance. , 2 ,/q-/l. In a.~dition, requ!:eci improvemen~ include the relocation of the existing bus stop on Fourth Avenue along the project frontage 50 feet to the sou~Jn due to the required roadway widening. The proposed relocation design has Ken reviewed by Chula Vista Transit Operations Staff. With the implementation of the required roadway frontage improvements, no significant traffic/circulation im.:a:ts would result from the proposed project. .Noise Im'es:igative Science and Engineering, Inc. prepared a noise study for the proposed project, dated November 4, 2002. The identified noise generators associated with the proposal consist of loading dock and delivery ~-uck' activities and roof mounted HVAC systems at the dragstore. No box compacting machinery would be utilized at the drugstore loading dock. According to the City Noise Ordinance, Municipal Code Section 19.68.030, the hourly average recelxSng noise level limit for multi-family residential development is 60 dBA Leq between the weekday hours of 7 a.m. and 10 p.m. and weekend hours of 8 a.m. and 10 p.m. and is 50 dBA Leq bem'e:n the weekday hours of 10 p.m. and 7 a.m. and weekend hours of 10 p.m. and 8 a.m. The closest sensitive noise receptor to the site is a multi-family residential development immediately to in: south. The property line bem'e:n the project site and this multi-family residential development is 30 feet from me proposed loadm= dock and nearest I-IVAC unit. Both the loading dock and I-IVAC uniu would be pm-dally to fully obscured from this residential development by existing slope topoD-aphy, increased landscape treatment and three-~%ot high parapet at the building edge roofline. According to the noise study, noise emissions from loading docks t~-pically consist of movement of marz.~als in and ou~ of the delivery ~--ucks, pedesnSmn noises and idling truck noise. According to Sav-On track delivery policy, n-~ck deliveries are res~¢ted to 3-5 per week and never more than one delivery during the same hour. These conditions formed the basis c~f the assumptions utilized in the no/se study. 'i-ne estimated mm:imm property line noise level associated with loading dock actixSties is 60 dBA Leq (one-hour); thi~ noise level is the City Noise Ordinance daytime standard. Loading dock act~x ~nes would mere~ore exceed the City Noise Ordinance nighttime noise level standard of 50 dBA Leq (one-hour). Therefore, no truck deliver/es will be permitted between the hours of I0:00 p.m. and 7:00 a.m weekdays mhd 10:00 p.m. and 8:00 a.m. weekends. Compliance with the mitigation measure contained below in Section F would avoid ;5!~maificant loading dock noise impacts. The proposed drugstore would utilize fora- HVAC unit~ operating under computer con~-ol. It is anticipated that not all unit~ would be in operation at the same time; however, th/s condition was assessed in the noise study as a worse case scenario. According to the noise study, I-IVAC operations would result in a worse case noise lev. el of 50 dBA Leq (one-hour) at the multi-farm'ly residential properly line to the south. This noise level is the City Noise Ordinance nighttime standard; therefore, -- no significant noise impacts from the proposed drugstore I-t'VAC equipment would result F. Mitigation Necessary to Avoid Sianificant Impacts Geoohvsical I. Prior to the commencement of grading, temporary erosion control measures shall be implemented. These measures may include desilting basins, ben'ns, hay bales, silt fences, dikes 4 .Iq-lq According to a preliminary drainage letter report prepared by Smart Engineering, Inc., dated October 1, 2001, the site as it is currently developed has minimal landscaped surfaces. The site currently consists of approximately 90% impervious surfaces. The proposed project would increase the percentage of lar/dscaped areas on-site, resulting in a decrease of impervious surfaces to 83%. Therefore, the proposal would not result in the generation of additional runoff. A final drainage study will be required in conjunction with the preparation of final grading and improvement plans and properly designed drainage facilities will be required to be installed at the time of site development. On-site drainage would be collected in new on-site catch basins that would drain into relocated Off- site catch basins along Fourth Avenue and "C" Street, prior to flowing southerly into the drainage char~'1.el. Pre-construction 2nd post-construction storm water pollution best management practices (BMPs) will be required to be incorporated into the final grading plans. Due zo the size and existing condition of the project site, the preparation and implementation of a Sto,.-.~ Water Pollution Prevention Plan (SWPPP) would not be required. However, compliance with prow~sions of the Ca!ifomia Re~onal Water Quality Control Board, San Diego Re,on Order No. 200!-01 with respect to construction-related water quality BMPs would be required. Based upon the proj.'zt design, conditions of the Precise Plan, and mitigation measures contained below in Section F, water quality impacts would be reduced to a level of less than sig'nificance. Traffic/Circulation Exis;ing Conditions Vehicular access to the project site is from Fourth Avenue via one. driveway and "C" Street/Third Avenue extension via four driveways. The intersection of Fourth Avenue and "C' Street is signalized. The segments of Fourth Avenue and "C" Street/Third Avenue extension fronting the project site currently operate at a LOS A. F_xq~ing Conditions Plus Propos~'d ProjebF Based upon the City's Municipal Code,:'Secfion 12.24.040, Cit~ Council Policy No. 563-02, and the Ckculation Element of the City's General Plan, the proposed project would be responsible for the following roadway frontage improvements as shown on Exhibit B and fees: · Widening of Fourth Avenue with full curb, gutter and sidewalk improvements. · Widening of "C" Street with full curb, gutter and sidewalk improvements. Construction of raised concrete median along "C" Street from Fourth Avenue to North Glover Avenue. · Relocation of traffic signal, sti'eet lights and utility poles as necessary for street widening improvements. · Right-of-way dedication of 18 feet along Fourth Avenue and 7 feet along "C" Street. · Payment of applicable Transportation Development Impact fees and Traffic Signal fees. and shoring. ~.nese measures shall be reflected on the g-fading and improvement plans to satisfaction of:he City Engine::. Wa'.~r'Draina_~ 2. Prior to the issuance of any ~rading permit and/or public consUmction permit, Ihe City Engineer shall verify tl,at the final _~mding and improvement plans comply w. ith the provisions of California Re~onal Water Quali~y Control Board, San Diego Re,on Order No. 2001-01 with r¢sp¢ct to consu-action and post-construction water quality best management practices. 3. As a condition of the Fourth Avenue and "C" Sweet Commercial Center project (PCM-02-05/IS- 02-05), no truck &liver/es to the dragstore shall be permitted between the hours of 10:00 p.m. and 7:00 a.m. weekdays and I 0:00 p.m. and §:00 a.m. weekends. Consultation 1. Indiv/duals and 0raanizations Ci~ of Chula Vista: Marilyn R.F. Po.':.seg~, Planning and Building Paul Hellman, Harming and Building Mafia C. Mue~ Planning and Building Brad Remp, Pla:ming and Building Duane Bazz¢I, Planning and Building Frank Hen-cra-& Planning and Building. Garry Williams, Planning and Building' ' Clifford Swanson, Engineering Frank Pdvera, En~neer/ng Ralph Leyva, En~neering Silvester Evetovich, En~neering Majed AI-Ghafi-y, Engineering Justin Gipson, Fire Depm'haent R/chard Preuss, Police Department- Cn.'.me Prevention .:-_ .... Applicant: Couck Miller, M.D. Chuta Vista, LLC O~e~: Sweetwater Authority Chula Vista Elementary School D/strict 2. Documents City of Chula Vista General Plan, 1989 Title 19, Chula Vista Municipal Code 5 .Noise Amalysis for 44 and C Commercial Plaza, Loading Dock/HVAC .Noise Assessment, 7-;:pared by Inv~s;igative Science and Engineering, Inc., November 4, 2002 Drainage Report Lener for Proposed Sav-On Drags, 4a Avenue and C Sweet, prepared by S~ar, Engineering, Inc., dated October 1, 2001.. 3. Initial Study ~-~is envirora'nental determination is based on the attached Initial Study, and any comments r::eived in response to the Notice of Initial Study. The report reflects the independent jud_~rnent of the City of Chula Vista. PurJner information regarding the environmental review of this project is avail£ale from the Chula Vista Planning and Building Department, 276 Fom-xh Avenue, Chula Vista, CA 91910. Mari!yn K~.F. Pons~ggi ~ ' Environmental Rexi,w Coordinator Date: Case No. IS-02-05 ENW'IRO.N.'MENTAL CHECKLIST FOR_M Name of Proponent: M.D. Chula Vista, LLC Lead Agency Name and Address: City of Chula Vista 276 Fourth Avenfie Chula Vista, CA 91910 Address and Phone Number of Proponent: 13212 Maricotte Place San Diego, CA. 92130 (858) 792-6963 Name of Proposal: Fourth Avenue and C Street Commercial Center Date of CheckIL~: Novernber 12, 2002 LAND USE A.WD PLAiN~TNG. 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 a~,angement of an established communi~'(inclq.d.lng a low- income or minority community)? Comments: a) The projecrsite is zoned CCD (Central Commercial District/Precise Plan) and designated CR (Retail .Commercial) under the City's General Plan; retail uses are permitted in this zone with design review of a Precise. Plan. The proposal would not conflict with any applicable adopted environmental plans or policies. Furthermore, the proposed development would not encroach into the Draft City of Chula Irtxta Multiple Species Conservcuibn Program Subarea Plan Habitat Preserve area. c) The project site is neither in current agricultural production nor adjacent to property in. agricultural production and contains no agricultural resources. d) The proposed developmem of a commercial building and remodeling of an exis,,in-2 :ommercial :emer would not disrupt or divide an established community. Mitig::ion: No mi:!,:afion measures are required II. POPULATION AND HOUSING. Would tlie ~,o,,o.i~n~- proposal: Impact 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 undevdoped area or extension of major infrastructure)? c) Displace existing housing, especially affordable [] housing? Commen~: a) The proposed redevelopment project would have no effects upon regional or local population, as it is a minor retail commercial land use and not a housing development. b) The proposed conu-nercial project would not directly or indirectly induce population growth, as it is a minor retail commercial land use. c) The existing project site does not contain any housing development, therefore, no displacement of existing housing or removal of affordable housing would occur. Mitigation: No mitigation measures are required. III. GEOPHYSICAL. Would the proposal result in or ~°'~ expose people to potemial impacts involving: Impact a) Unstable earth conditions or changes in s geologic substructures? b) Disruptions, displacements, compaction or rn overcovering of the soil? ? c) Change in topography or ground surface relief ~ features? d) The destruction, covering or modification of [] any un/que geologic or physical features? e) Any increase in wind or water erosion of soils, g either on or off the site.'? 0 Changes in deposition or erosion of beach tn sands, or changes in siltation, deposition or erosion which may modify the channel of a river or stream or the bed of the ocean or any bay inlet or lake? -2- g) Exposure of people or property to geologic hazard~ such as earthquakes, landslides, mud slides, __.round failure, or similar hazards? Comments: See Mitigated Negative Declaration, Section D. 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 runoff2. b) Exposure of people or property to water related hazards such as flooding or tidal waves? c) Discharge into su/'fac~waters or other alteration of surface water quality (e.g., temperature, dissolved oxygen or turbidly)? d) Changes in ',he 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 tine quantity of ground waters, tither through dir.-ct additions or withdl=iiwals, or ' through interception of an aquifer by cuts or excavations7 g) Alter~d direction or rate of flow of groundwater? h) Impacts to groundwater quality? i) Alterations to the cours~.6r floW.~f flood waters? j) Substantial reduction in the amount of water otherwise available for public water supplies? Comments: See Mitigated Negative Declaration, Section D. Mit.igation: See Mitigated Negative Declaration. Section F. D [] D [] 0 D D [] 0 [] 0 ~ Vo AIR QUALITY.- WouM the proposal: w,~,any a~',~t t~,~ a) Violate any air quality standard or contribute to o ~ ~ ~ ._ an existing or projected air quality violation? :: b) Expose senskive receptors ~o pollutants? 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) Grading and construction of the proposed redevelopment proj~t 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 redevelopment project would not contribute significantly to the degradation of the local air quality. b) See V.a. above. c) The proposed redevelopment project would not alter air movement, moisture, or temperature, or cause any change in climate. d) Neither development nor operation of the proposed commercial center is anticioated to create any objectionable odors. See V.a. above. Mitigation: No mitigation measures are r. equired. VI. TR-4,NSPORTATION/CIRCULATION. Would the proposal result in: a) Increased vehicle trips or traffic congestion? b) Hazards to safety from des{gn _f,.e~arures. (e.g., u sharp curves or dangefia-Us intei~ections) or incompatible uses (e.g., farm equipment)? .. c) Inadequate emergency access ~r access to nearby uses? : d) Insufficient parking capacity on-site or off-site? [] e) Hazards or barriers for pedestrians or u bicyclists? f) Conflicts with adopted policies supporting m alternative transportation (e.g. bus turnouts, bicycle racks)? g) Rail, waterborne or air traffic impacts? h) A "large project" under the Congestion m [3 [] D [] D [] El [] [] [] [] [] n [] 0 [] D [] 0 [] [] D O [] .,. /v-oq Management Program? (An equivalent of 2400 or tuore ay:rage daily vehicle trips or 200 or more peak-hour vehicle trips.) Comments: See lqifi,_:ated Negative Declaration, Sec:ion D. Mitigation: No mitigation measures are required· VII. BIOLOGICAL RESOURCES. Would the ?roposal result in bn, oacts to: a) Endangered, sensitive species, species of concern or species that are candidates for listing? b) Locally designated species (e.g., heritage trees)? c) Locally designated natural communities (e.g., oak forest, coastat~habitat, etc.)? d) Wetland habitat (e.g., marsh, riparian and vernal pool)? e) Wildlife dispersal or migration corridors? f) Affect regional habitat prese:-,'ation planning efforts? D .... D D ~ a) No endangered or sensitive species, species of concern or species that are candidates for listing are present within or immediately adjacent to the proposed development area. b) No locally designated species ara present within or immediately adjacent to the proposed development area. c) No locally designated namra. J.communities are present within or immediately adjacent to the proposed developnSent area.:' d) No wetland habitat is present within:hr immediately adjacent'to the proposed development area. e) No wildlife dispersal or migration corridors exist within or immediately adjacent to the proposed development area. No impacts to regional habitat preservation planning efforts would result from the proposed project as the development site is a designated development area in the Draft City of Chula Vista Multiple Species Conservation Program Subarea Plan. Mitigation: No mitigation measures are required. _,_ /q-aS VIII. ENERGY AND MINER_&L RESOURCES. Bbutd the ?ro?osal: z) Conflict with adopted energy conservation plans? b) Use non-ren*wable resources in a wasteful and m inefficient manner? c) If the site is designated for mineral resource [] [] protection, will this project impact this protection? .... Comments: . a) 'I'ne project would not conflict with any adopted energy conservation plans. b) The proposed comrnercial development would be designed to meet or exceed all applicable energy efficiency reg~ulat/ons. There are no proposed features or aspects of the project that would result in the wasteful or inefficient use of non-renewable resources. c) Pursuant to the Environmental Impact Report for the City. of Chula Vista General Plan, the State of California Deparuuent of Conservation does not designate the project site for mineral resource protection. Mitigation: No mzfgation measures are required. IX. 14_4.ZARD S. Would the proposal involve: a) A risk of accidental explosion or release of tn hazardous substances (including, but not limited to: petroleum products, pesticides, chemicais or radiation)? b) Possible interference with an emergency [] response plan or emer{~_ncy eva.?ation plan? c) The creation of any he~]th hazard or potent/al [] health hazard? d) Exposure of people to existing sources of c~ potential health hazards? e) Increased fire hazard in areas with flammable rn brush, grass, or trees? Comments: [] [] [] a) There are no features of the proposed project that represent an atypichl risk of accidental explosion or release of hazardous substances. If applicable, a business plan that identifies the type and location of any hazardous materials utilized and/or stored on-site by any of the tenants would be required to be flied with the City Fire Department and County for San Diego Depamnent of Environmental Health/Hazardous Materials Management Division. The proposed ¢orrumercial red~veloprnent project would not result in interference with an emergency response plan or emergency evacuation plan. According to the Fire Department. dqe propon.~nt is required to have access roads meet Chula Vista Fire Department turning radius measurements and provide access ways within the project site, with a minimum wid~ of 20' with 13' 6" unobstructed vertical clearance; these requirements have been met by the proponent. c) There is the potential for the release of hazardous materials (i.e., asbestos, lead) during .the demolition of portions of the existing commercial center. The applicant will be required to be in compliance with San Diego County Department of Environmental Health, Hazardous Materials Management Division regarding hazardous materiali' femrJval during demolition activities. Thus, no health hazards or potential health hazards would result from the proposed project. d) No 'known sources of potential health hazards exist on the project site or in the immediate vicinity. e) The project site is fut~Iy de~,eloped and does not contain flammable native brush, grass, or Trees, and is not adjacent to such fire hazard areas. Mitigation: No mitigation measures required. NOISE. Wout. d zhe proposal rexult in: a) Increases in existing noise levels? b) Exposure of people to seve[e nois~ levels? Comments: See Mitigated Negative Dec'laration, Section D. Mitigation: See Mitigated Negative D~laration, Section F. PUBLIC SERVICES. Would the p~'posal have an effect upon. or result in a need for new or altered governmknt services in any off the following ryFeas; a) Fire protection? b) Police protection? c) Schools? d) Maintenance of public facilities, including roads? e) Other governmental services? Comments: [] El [] 0 [] El [] D [] c) o ~ a) According to ~'~e Fire Department, adequate fire protection services can continue to be provided upon completion of the proposed project. The proposed COl-n-mercial development would not hax'~. a significant eft%ct upon or result in a need for new or altered fire protection sec'vices. b) According to fi'~e Police Department, adequate police protection services can continue to be provided upon completion of the proposed project. The proposed commercial remodeling project would not have a significant effect upon or result in a need for new or altered police protection sen'ices. c) The proposed project is a minor retail commercial development and therefore would not induce any population growth nor result in any adverse impacts to public schools or need for additional public schools. d) The required roadway frontage improvements to be constructed by the proponent would be maintained by the City following acceptance by the City; however, these improvements are consistent with current City plans and policies and would improve the performance of the local street nenvork. e) As a private development, the proposed commercial retail center does not require the need for governmental services. Tiao proposed project is a commercial land use and would not have a sig'nificant effect upon or result in a need for new or expanded governmental services. Mitigation: See Mitigated Negative Declaration, Section F. Thresholds. Will the proposal adFe~sety impact' the City's JTzreshold Standards? As described ~low, the proposed project would not adversely impact any of the seven Threshold Standards. a) Fire/EMS : O [] [] n The Threshold Standards requires that fire and medical units must be able to respond to calls within ? 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, as the commemial center is 1.5 miles from the nearest fire station and would be associated with a two-thr~ minute response time. The proposed project would comply · with this Threshold Standard. Comments: The Fire/EMS threshold would be met as reported by the Fire 'Department. Therefore, no significant impacts to fire services are anticipated. Mitigation: No mitigation measures are required. b) Police [] [] a [] The Threshold Standards require that police units must respond to 84% of Priority 1 calls within 7 minutes or less and maintain an average response time to all Priority I calls of 4.5 minutes or less. Police units must respond to 62.10% of Priorirz. 2 calls within 7 minutes or less and maintain an average response time to all Priority 2 calls of 7 minutes or less. Comments: ihe Police threshold would continue to be met' as reported by the Police Department. Therefore, no significant impacts to police services are anticipated. Mitigation: No mitigation measures are required. c) Traffic m m a m Ci~'-;vide: Maintain LOS "C" or bener as measured by observed average travel speed on alt signalized arterial segments except that during peak hours a LOS "D" can (>:cur for no more than any two hours of the da5,. 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: No expectances of ~" traffic thresholds would result from flue proposed redevelopment of the project sire. Mitigation: See Mitigated Negative Declaration, Section F. .:-- .. ~; d) Parks/Recreation '.~ rn [] [] a The Tkre~hold 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: .The proposed project is located west of 1-805, thus the parks and recreation threshold standard does not apply: .Mitigation: No mitigation measures are required. e) Drainage [] n [] [] The Threshold Standards require that storm water flows and volumes not exceed Ci,2,.' Engineering Standards. Individual projects ',','ill provide necessary improvements consistent with the Drainage Master Plan(s) and City Engineering Standards. Tae proposed project will compiy with this Threshold Standard. Comments: See Mitigated Negative Declaration, Section D. Mitigation: See Mitigated Negative Declaration, Section F. ¸No Sewer The Threshold Standards require thai sewage flows and volumes not exceed City En__m.~nn, Standards. Individual projects will provide necessary improvements consistent with Sewer Master Plan(s) and City Engineering Standards. The proposed project will comply with this Threshold Standard. Comments: There is an existing 8-inch sewer line on the westerly side of the project site that flows nor~-nerly along Fourth Avenue and an existing 8-inch sewer line on the northerly side of the project site that flows westerI3( along "C" Street; both connect to a 10-inch sewer line flowing westerly on "C" Street. No new sewer service would be required to serve the proposed project. Proper engineering design of required sewer improvements to serve the prQect would ensure that sewage flows and volumes would not exceed CiG Engineering Standards. Mitigation: No mitigation measures are required. g) Water The Threshold Standards require that adequate storage, treatment, and transmission facilities are constructed concurrently with planned growth and that water quality standards are not jeopardized during growth and construction. The proposed project will comply Mth 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: The project site is within the service area of the Sweetwater Water Authority. The project may be adequately serviced off the existing 16-inch water main on Fourth Avenue and the 8-inch water main on aC" Street. Project impacts to the District's storage, treatment, and transmission facilities would be less than significant. Mitigation: No mitigation measures are required. -10 XIII. UTILITIES AND SERVICE SYSTEMS. Would the proposal result in a need far new ~'ste~, or substantial a!:eraffons to the folIowing utilities: a) Power or natural gas?. m b) Communications systems? c) Local or regional water treatment or distribution facilities? [] n ~ O d) Sewer or septic tanks2 [] [] :~ rn e) Storm water drainage? [] [] ~z [] 0 Solid waste disposal? [] [] ~ [] Comments: a) 'Fne project site is lo~ated within an urban area that is currently served by all necessary utilities and sea, ice systems. Any alterations to existing utilities and service systems and connections :o such utilities and systems that are necessary in order to adequately service the proposed project would be implemented by the proponent, subject to the approval of the appropriate utilities and service providers and the City. No significant impact to utilities and service systems would result from the proposed project. b) See XIII.a. c) See XIII.a. Pursuant to correspondence from the Sweet'water ,~,uthority, dated August 17, 2001, the project may be serviced fr6~ existing potable water mains. d) See XIII.a. According to the Engineering DMsion, there is an existing 8-inch sewer line on the westerly side of the project sire that flows northerly along Fourth Avenue and an existing 8-inch sewer line on the northerly side of the project site that Flows westerly along "C" Street; both connect to a 10-inch sewer line flowing westerly on "C' Street. City Engineering stuff has determined that existing sewer mains are adequate to serve the proposed project. _:'" ',' ~; e) See XIII.a. There is an existing inlet located southwest of th~'property along Fourth Avenue and the southeat curb return of the intersection of Fourth Avenue and "C' Street. The. adequacy of the existing storm drainage facilities to serve the project will be determined at the time of detailed engineering design; any improvements to the storm drainage system that are deemed necessary will be irnplemented by the proponent to the satisfaction of the City Engineer. f) See XlII.a. Mitigation: No mitigation measures are required. XIV. AESTHETICS. Would the proposal: · a) Obstroct an.,.' scenic vista or view open to fine public or will the proposal result in the creation of an aesfinetically offensive site open to public view? b) Cause the destruction or modification of a scenic route? c) Have a demonstrable negative aesthetic effect? d) Create added li~,ht or ~lar~. sources that could in.crease 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 197 - e) Produce an additi~onal amount of spill light? Comments: a) No significant scenic vistas or views open to the public exist through the site. b) In accordance with the City's General Plan, Fourth Avenue (from Route 54 to the Chula Vista Greenbelt) is a designated scenic roadway. Landscape treatments within a 10-foot wide strip, along Fourth Avenue and 'cC" Street and internal landscaping are proposed in accordance with the City of Chula .Vista Mum.'cipal Code, (Sections 19.36.090 and 19.36.1 I0) landscape and site architectural requirements and design review guidelines. These landscape improvements would ensure that aesthetic impacts to this scenic roadway are not adverse. c) The project sire is currently developed with an existing commercial center that has not been in full operation over the past years. The existing landscaping and decorative hardscape has not been consistently maintained. ~e proposed redevelopment of the project site would not have a demonstrable negative aestheuc effect; m fact, it would provide an n'nprovement to the aesthetic quality of the area. Proposed improvements al:9..ng the site's two street frontages, including landscaping, 3ecorafive hardscape, and street improvements, would have a positive aesthetic effect. d) Proper archit~mral design would ensure compliance with Section 19.66.100 of the Chula Vista Municipal Code. Exterior lighting would not be directed upward and would be designed with appropriate shielding, if necessa~, to ensure that light does not spill horizontally beyond the limits of the' development area onto adjacent roadways, and surrounding properties. e) See XIV.d. Mitigation: No mitigation measures are required. CUI,TURAL RESOUqRCES. Would proposal: a) Result in C'~e alteration of or the destruction or a prehistoric or historic archaeological site? b) Result in adverse physical or aesthetic effects to a preh~s;onc or hlstorlc bmldmg, structure or object? c) Have the potential to cause a physical change, which would affect unique ethnic cultural values? d) Restrict existing religious or sacred uses within the potential impact area? e) Is the area identified on the City's General Plan ' EIR as an area of high potential for archaeological resources? Col~g~ilents: a) No prehistoric or historic archaeological sites are known or expected to be present within the impact area of i've proposal. See XV.e. below. b) No buildings or sumcmres are present within the impact area of the proposal and no prehistoric or kistoric objects ar~ known or expe:ted to be present within the impact area. See XV.e. below. 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) i'he project site is identified as an area of low potential for cultural resources in the City's General Plan E1L~. Based on the low sensitivity of the site, the level of previous disturbance to the site, and the relativel7 .minor...a~ ount of proposed excavation, the potential for impacts to archaeological resoumes 'is considered to be less than significant. Mitigation: No mitigation measures are required. ~ PALEONTOLOGICAL RESOURCES. W~ll the proposal result in the alteration of or the destruction of paleontological resources ? -13 The pro]gat site is identified as an area of Iow potential for paleontological resources in [,ne Cipy's Genera! Plan EIR..Eased upon the Iow sensitivity of fine site, ~he level of pre,vious disturbance to the site and fxe relatively minor amount of proposed excavation, the potential for impac~ to paleontological resour:es is considered to be less than significant. Mitigation: No mitigation measures are required. XVII. RECREATION. Would the proposaI: a) Increase tnqe demand for neighborhood or regional parks or other recreational facilities? b) Affect existing recreational opportunities? c) Interfere with parks & recreation plans or programs? , Comments: a) Because fine proposed project consists of redeveloping an ex~sting commercial center, it would not induce any population growth nor require park pad fees. 'Inns, the project would not result in an increase in demand for neighborhood or regional parks or other recreational opportunities. b) No recreational facilities exist or are proposed on the project site. The proposal would not affect existing off-site recreational opportunities including the neighborhood park across the s~reet. The proposed project would not result in a significant impact to recreational opportunities. c) According to the Parks and Recreation Element of the General Plan, the project site is not planned for any furore parks an~t recreation facilities or programs. Mitigation: No mitL~ation mea'sur& are reqhired. XVIII. MANDATORY FINDINGS OF SIGNIFIC.&NCE: See Negative Declaration for rnandato~yfindings of significanc~ If an EIR 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 ora fish or wildlife species, [] o D [] cause a fish or v~'i]dlife population to drop below self-susa!ning levels, tN, eaten to eliminate a plant or animal community, reduce the number or resM:: tine range of a mr: or endangered plant or animal or eliminate important examples of the major periods or California history or prehistow? Comments: The site is currently occupied with a commercial retail use, and is within the designated development area the Draft City of Chula Vista Multiple Species Conservation Program Subarea Plan. The site was previously disturbed with grading for the existing center. There are no known sensitive plant or anirnaI species or cultural resources on the site. . .... . Mitigation: No mitigation measures are required. b) Does the project have the potential to achieve [] [] ~_ ~ short-term, to the disadvantage of long-term, environmental goals.'? .. Comments: The project would not af~Sct long-term environmental goals of the Ci~, because the project !s consistent with the City of Chula Vista General Plan and the Draft City of Chula Vista MultipLe Species Cons:m'ation Program Subarea Plan. The project site is currently developed. No significant short-term impacts would result from the proposed project. Mitigation: No mitigation measures are required. Does the pr~ect have impac~ that are in [] m m individually limited, but cumulatively considerable? (;'Cumulatively considerable" means that the incrementaI effects of a project are considerable when viewed in connection with the eftScB of past prdjects, the effects of other current projects, and the effects of probable fuv,~e projects.) Comments: No other development projects hayg been recently approved in the surrounding area, nor are there any known future projects m the area that would create cumulattyely considerable impacts. No si~ifioant cumulative impacts would result fi-om the proposed proj.e.ct. Mitigation: No mitigation measures required. d) Does the project have env/ronmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? 0 [] D [] Comments: No significant effects on human beings, either directly or indirectly, are anticipated to result from the proposed project. The 2.67-acre site is currently occupied and is zoned for commercial land uses. Mitigation: No mitigation measures are required. 'it XIX. PROJECT REVISIONS OR MITIGATION .MEASU]IES: Project mitization measures are contained in Section F, Mitigation Necessary to Avoid Significant Imnac:s and Table l, ;Mi:i~ation Monitoring and Repordn~ Proaram Checklist, of M~tigated Negative Dezlara:ion IS-02-05. XX. AGREEMENT TO IMPLEMENT MITIGATION MEASURES By signing the line(s) provided below, fine Property Owner and Operator stipulate Lhat they have read, understood and have their respective company's authority to and do agree to the mitigation measures contained herein, and will implement same to the satisfaction of the Environmental Review Coordinator. Failure to sign'the line(s) provided below prior to posting of t_his 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 Prqperty Own~-r (or auth~'zea represemative) Signarare of Property Owner (or author'2ed represen:ative) Date Date Printed Name and Titie of Operator (if different from Property Owner) Signature of Operator (if different from Prope,wy Owner) Date D ate XXI. ENVIRONM~ENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potenually $~gmf.~ant Impacff or "Potentially Significant Unless Mitigated,~ as indicated by the checklist on the following pages. [] Land Use and Planning [] Population and Housing [] Transportation/Circulation [] Biological Resources [] Energy and Mineral Resources [] Hazards · Noise [] Public Services [] Utilities and Service Systeras [] Aesthetics [] Cultural Resoumes [] Recreation [] Mandatory Findings of Significance · Geophysical · Water [] Air Quality [] Paleontological Resources XXII. DETERMINATION: On the basis of this inidal evaluation: I fin2 t2~at the proposed project COULD NOT have a significant effect on the environment, and a .NEGATIVE DECL-',RATION ',;'ill be prepared. t 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 m. itigation measures descried on an attached sheet have been added to the project. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed prgject MAY have a significant effect on the. e. nvironment 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 6ne 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 eariier 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 fine enviroi'~ment, there WILL NOT be a significant effect in this case because all potentially significant effects (a) have been anaiyzed adequately in an earlier EIR pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier including revisions or mitigation measures that are imposed upon the proposed project. An addendum has been Crepared to provide a record of this determination. M'afilyn R.F. Ponse:~ / D~e Envirom"n, ental Review Coordinator J:\PlanningkMARIAklnitial Stud.vk!S020Sehk st.doc · ATTACH.MENT '%" MITIGATION MONITOP,_ING AND P,_EPORTING PROGtLA. M (MMR.P) 4'~' A~'e:z:~e and "C" Street Commercial Ce~zterRemodeling- 1S-02-05 This Mizi gation MoN~ofing and ~eponing Program has been pr~pa'red by the City of Chula.Vista in conjunction with the proposed Fourth Avenue and "C" Street Commercial Center project. The proposed project has been evaluated in an Initial Study/Mitigated Negative Declaration (IS-02- 05) prepm'ed in accordance with the California Environmental Quality Act (CEQA) and City/Sra:e CEQA Guidelines. The legislation requires public agencies to ensure that adequate mitigation measures are implemented and monitored for Mitigated Negative Declarations. AB 31 $0 requires monitoring of potentially significant and/or significant enviromnental impacts. The Mitigation Monitoring and Reporting Pro,am for this project ensures adequate implementation ofmitigationt for the following potential impacts: ~ Geoohysic=l 2. Wat,.r/Dr~.-:age " Noise MONITORING PRO GRA~M Due to ihe nature of t?.e environmental issues identified, the Mitigation Compliance Coordinators shall be the Environmental Reviexv Coordinator and City. Engineer of the City of Chun Vista. The applicant shall be responsible to ensure 'that the conditions of the Mitigation Monitoring and Reporting Pro,am are met to the sarishction of the Environmental Review Coordinator and City En~neer. Evidence in written fo~,-'m confirming compliance with the mitigation measures specified in Mitigatecl Negative Declaration IS-02-05 shall be provided by the applicant to the Envirommental Review Coordinator and City Engineer. The EnvirOnmental Review Coordinator and CiD, .Engineer will thus provide fine ultimate verification that the mitigation measures have been accomplished. 5,' " Table 1, Mitigation Monitoring and Reporting Program Checklist, lists the mitigation measures contained/n Section F, Mitigation Necessary to Avoid Significant Effects, of Mitigated Negative Declaration IS-02-05, 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 monitorin~verifying that the applicant has completed each m/tigation measure. Space for the signature of the verifying person and the date of inspection is provided in the last colurrm. J:~Plannlng~{ARIA~Initial Studv'~ISq32-O5MM R.p *xt. do¢ o CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT M D APPLICANT:.. CHULA VISTA, LLC [ I ~ PEOJECT SEC of Fourth Ave. ADDRESS: and "C" Street SCALE: I FILE NUMBER: NORTH No ScaleI 15-02-005 h:/hom e\planning\carlos\locators~lS02005.cdr 8115101 PROJECT DESCRIPTION: Proposal for new 15,176 square feet Sav-on drugs and 1,189 square feet additional retail to remaining 8,700 square feet retail. Related Case: PCM-02-05 ., ir"/- ~--O .... ~ ATTACHMENT CHULA VISTA ENGINEERING 276 Fourth Avenue Chula Vista CA 91910 619-691-5021 619-691-5171 FAX FORM 5506 STORM WATER PROJECT REVIEW & PERMITTING PROCESS Figure 1 Review and Approval Process for Development and Redevelopment Projects Project is Subject to SUSMP Requirements Prepare Water Quality Technical Report in Accordance with Appendix B Any Yes? Submittal Complete Form Complete Form No $. - 5500 5501 Any Incorporate BMPs as Indicated in Form 5501 Project is Exempt From Permanent BMP Requirements Prepare SWPPP in Accordance with Form 5503 Yes I Complete[ ~Secti°n 1 of _ No ~. Complet~ Section 2 of Form 5502- Any Prepare Construction Storm Water Management Plan in Accordance with Form 5504 All No's? Project is Exempt ~, Prom Construction BMP Requirements CHUL4. VIS'FA ENGINEERING 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5021 619-691-5171 F.~X FORM 5500 PROJECT PERMANENT STORM WATER BMPs (SUSMP) REQUIREMENTS Appendix A Complete the following checklist to determine the project's per manent and conslzuction best management practices requirements. This form must be completed and submitted with the permit application. If one or more questions in the checklist are answered "Yes," the project is subject to the "Priority Project Permanent Storm Water BMPS (SUSIvlY)" requirements in Appendix B. /fall answers are "No", please complete Form 5501 to determine if the project is subject to the "Standard Permanent Storm Water Blvl?" requirements. Does the project meet the definition of one or more of the priority project categories? Also, refer to the definition in Appendix F for expanded definition of the Significant Redevelopment priority project Yes I. Detached residential development of 10 or more units 2. Attached residential development of 10 or more units 3. Commercial development ~eater than 100,000 square feet 4. Automotive repair shop 5. Restaurant 6. Steep hillside development greater than 5,000 square feet 7. Project discharging to receiving waters within Environmentally Sensitive Areas 8. Parking lots greater than or equal to 5,000 square feet or with at least 15 parking spaces, and potentially exposed to urban runoff 9. Streets, roads, highways, and freeways which create a new paved surface that is 5,00 0 square feet or greater * Refer to the definitions in Appendix F for expanded definitions of the priority project categories. No Limited Exclusion: Trenching and resurfacing work associated with utility projects are not considered priority projects. Parking lots, buildings and other structures associated with utility projects are priority projects if one or more of the criteria is met. J:~En gineer'~qP DES~N PDES Maauarfform 5500 l.doe Form 5500 Page 1 of 1 CHUIA VISi'A ENGINEERING 276 Fourth Avenue~ Chula Vista, CA. 91910 619-691-5021 619-691-5171 FAX FORM 5501 PERMANENT STANDARD STORM WATER BMPs REQUIREMENTS Appendix A Section 1 Complete the following checklist to determine if the project is subject to "Permanent Standard Storm Water BMPs" requirements. ~ .' If one or more questions in the following checklist are answered "Yes", the project is subject to the applicable "Permanent Standard Storm Water BMPs" requirements identified in Section 2 of this Form 5501. If all answers are "No", the project is exempt from permanent storm water BMPs requirements. 2. 3. 4. 5. 6. 7. 8. 9. 10 Does the project propose: New impervious areas, such as rooftops, ro ads, parking lots, driveways, paths, and sidewalks? New pervious landscape areas and irrigation systems? Permanent structures within 100 feet of any natural water body? Trash storage areas? Liquid or solid material loading and unloading areas? Vehicle or equipment fueling, washing, or maintenance areas? Require a General NPDES permit for Storm Water Discharges Associated with Industrial Activities (except Construction)? * Commercial or industrial waste handling or storage, excluding typical office or household waste? Any grading or ~ound disturbance during construction? Any new storm draln~ or alteration to existing storm drains? Yes No Applicable BMP (refer to Section 2 of this Form 5501) A.1, A.2, B1, C.1, C.2, C.8, C11 A. 1, A.2, B.4, C.10 A.1, A.2, A.3 B.3 B.2, C.3 C.4, C.5, C6, C.7, C.9 Applicable BMPs B2, B3, C.3, C.6 A.I, A.2, A.3, CI0 A.3, B.1, C11 *To find out if the project is required to obtain an individual General NPDES Permit for Storm Water Discharges Associated with Industrial Activities, visit the State Water Resources Control Board web site at, www.swrcb.ca.~ov/stormwtr/industrial.html. Applicable BMPs shall be selected from Section 2 of this Form 5501. Form5501 iq .~qq Pagelof6 Permanent Storm Water BMP Requirements - Standard ]~equiremen~s Development ProjectS subject to permanent standard BMP requirements shah complete and incorporate all necessary permanent BIv[Ps into the project plans prior to submittal, regardless of project type. The City may approve proposed alternatives to the BMP requirements in this manual if they are determined by the City to be applicable and equally effective. Also, additional BMPs, analysis or information may be required by the City to enable staff to determine the adequacy of proposed BMPs, and will be requested throu~ the project re,Sew process. Refer to Step 2 in the Manual: "Prepare & Submit Appropriate Plans," for gnidance in the BMP~design process. Projects shall incorporate, where applicable, storm water B.~ffs into the project desigu, in the following progression: · Size Design BMPs · Source Control BMPs · BMPs for Individual Project Categories The series of BMPs listed below have organ/zed sequentially to allow the applicant and design professional to incorporate the site design, source control BMPs, and where necessary, requirements applicable to individual project categories in this progression. A, Site Design BMPs 1. Minimize Project's Impervious Footorint & Conserve Natural Areas The following site design options shall be considered and, incorporated and implemented where determined applicable and feasible by the developer, and as approved by the City of Chula Vista, during the site planning and approval process, consistent with applicable General Plan policies and other development regulations. a. Minimize impervious footprint. This can be achieved in various ways, including, but not limited to increasing building density (number of stories above or below ground) and developing land use regulations seeking to limit impervious surfaces. Decreasing the project's footprint can substantially reduce the Form5501 project's impacts to water quality and hydrologic conditions. Conserve natural areas where feasible. This can be achieved by concentrating or clustering development on the least environmentally sensitive portions of a site, while leaving the remaining land In a natural, undisturbed condition. The following list provides a guideline for determining the least sensitive portions of the site, in order of increasing sensitivity. Developers should also refer to the City's Multiple Species Conservation Plan or other biological regulations, as appropriate. o Areas devoid of vegetation, including previously graded areas and agriculmral fields. o Areas of non-native vegetation, disturbed habitats and eucalyptus woodlands. o Areas of chamise or mixed chaparral, and non-native grasslands. o Areas containing coastal scrub communities. o Ali other upland communities. o Occupied habitat of sensitive species and all wetlands (as both are defined by the City of Chula Vista). o All areas necessary to maintain the viability of wildlife corridors. Within -each of the previous categories, areas containing hillsides (as defined in Appendix E) should be considered more sensitive tlmu the same category without hillsides. ConsUmct walkways, trails, patios, overflow parking lots and alleys and other low-traffic areas with permeable surfaces, such as pervious concrete, porous asphalt, unit pavers, and granular materials. Construct sweets, sidewalks and parking lot aisles to the minimum widths necessary, provided that public safety and a walkable environment for pedestrians are not compromised. Maximize canopy interception and water conservation by preserving existing native trees and shrubs, and planting additional native or drought tolerant U'ees and large shrubs. Page 2 of 6 f. Minimize the use of impervious surfaces, such as decorative concrete, in the landscape design. g. Use natural drainage systems to the maximum extent practicable. h. Other site desi~ options that are comparable, and equally effective, as approved by the City. 2. Minimize Directly Connected Iml)ervious Areas (DCIAs~ Projects shall consider, and incorporate and implement the follo~%g design characteristics, where determined applicable and feasible by the City. a. Where landscaping is proposed, drain rooftops into adjacent landscaping prior to discharging to the storm dram. b. x3,~ere landscaping is proposed, drain /mpervious sidewalks, walkways, U-ails, and patios into adjacent landscaping. c. Other design chm:acterisfics that are comparable and equally effective, as approved by the City. 3. Protect Sloves and Chamaets Project plans shall include storm water BMPs to decrease the potential for erosion of slopes and/or channels, consistent with local codes and ordinahces and with the approval of all agencies with jurisdiction over the project, e.g., the U.S. Army Corps of Engineers, the San Diego Regional Water Quality Control Board, and the California Department of Fish and Game. The following design principles shall be considered, and incorporated and implemented where determined applicable and feasible by the City of Chula Vista: a. Convey nmoff safely from the tops of slopes. b. Vegetate slopes with native or drought tolerant vegetation. c. Conlrol and treat flows in landscaping and/or other controls prior to reaching existing natural drainage systems. d. Stabilize permanent channel crossings. e. Install energy dissipaters, such as riprap, at the outlets of new storm drains, culverts, conduits, or cl~annels that enter u.alined channels in accordance with applicable specifications to minimize erosion. Energy dissipaters shall be installed in such a way as to minimize impacts to receiving waters. f. Other design principles that are comparable Form 5501 and equally effective, as approved by the City. B. Source Control BMPs. 1. Provide Storm Drain System Stenciling and Si~nage Storm drain stencils are highly visible source control messages, typically placed directly adjacent to storm drain inlets. The stencils contain a brief statement that prohibits the dumping of improper materials into the urban runoff conveyance system. Graphical icons, either illustrating anti-dumping symbols or images of receiving water fauna, are effective supplements to the anti-dumping message. Projects shall include the following requirements in the project design. a. Provide stenciling, labeling, or stamping in flesh concrete of all storm drain inlets and catch basins within the project area with prohibitive language (such as: "NO DUMPING - I LIVE DOWNSTREAM") and graphical icons to discourage illegal dumping, according to City approved designs. b. Post signs and prohibitive language and/or graphical icons, which prohibit illegal dumping at public access points along channels and creeks within the project area, according to City approved design. c. Maintain legibility of stencils and signs. · 2. Design Outdoor Material Storage Areas to Reduce Pollution Inlroduction Improper storage of materials outdoors may increase the potential for toxic compounds, oil and grease, heavy metals, nutrients, suspended solids, and other pollutants to enter the urban runoff conveyance system. Where the project plans include outdoor areas for storage of hazardous materials that may conlribute pollutants to the urban runoff conveyance system, the following storm water BMPs are required: Hazardous materials with the potential to contaminate urban runoff shall either be: (1) placed in an enclosure such as, but not limited to, a cabinet, shed, or similar structure that prevents contact with runoff or spillage to the storm water conveyance system; or (2) protected by secondary containment structures such as berms, dikes, or curbs. Page 3 of 6 b. The storage area shall be paved and sufficiently imper,,ious to contain leaks and spills. c. The storage area shall have a roof or awning to miniraize direct precipitation within the secondary contaim'nent area. d. Other methods that are comparable and equally effective within the projects, as approved by the City. 3. Desi_o'n Trash Storane Areas to Reduce Pollution Introduction All trash container areas shall meet the following requirements (limited exclusion: detached residential homes): a. Paved with an impervious s .urface e, designed not to allow nm-on from adjoining areas, screened or walled to prevent off-site n-ansport of trash; and b. Provide attached lids on all trash containers, that exclude rain; or roof or axx"ning to minimize direct precipitation. c. Other design characteristics that are comparable and equally effective, as approved by the City. 4. Use Efficient Irrigation Systems & Landscape Desien. and Employ Inteerated Pest Management Principles Priority projects shall design the timing and application methods of irrigation water to minimize the runoff of excess irrigation water into the storm water conveyance system. (Linfited exclusion: detached residential homes.) The following methods to reduce excessive irrigation runoff shall be considered, and incorporated and implemented where determined applicable and feasible by the City: a. Employing rain shutoff devices to prevent irrigation after precipitation; b. Dasigmlng irrigation systems to each landscape area's specific water requirements; c. Using flow reducers or shutoff valves triggered by a pressure drop to control water loss in the event of broken sprinkler heads or lines; d. Employing other comparable, equally effective, methods to reduce irrigation water runoff. Form 5501 Employ Inte~ated Pest Management Principles Integrated Pest Management ([PM) is an ecosystem- based pollution prevention strategy that focuses on long-term prevention of pests or their damage through a combination of techniques such as biological control, habitat manipulation, modification of cultural practices, and use of resistant plant varieties. Pesticides are used only after monitoring indicates they are needed according to established gu/delines. Pest control materials are selected and applied in a manner that minimizes risks to human health, beneficial and non-target organisms, and the environment. More information may be obtained at the UC Davies website (htm://www.ipm.ucdavis.edu/WATER/U/index.html) Eliminate and/or reduce the need for pesticide use in the project design by: Plant pest-resistant or well-adapted plant varieties such as native plants; and Discourage pests by modifying the site and landscaping design. Pollution prevention is the primary "first line of defense" because pollutants that are never used do not have to be controlled or treated (methods which are inherently less efficient). Distribute IPM educational materials to future site residents/tenants. Minimally, educational materials must address the following topics: a. Keeping pests out of buildings and landscaping using barriers, screens, and caulking; b. Physical pest elimination techniques, such as, weeding, squashing, trapping, washing, or pmnlr~g out pests; c. Relying on natural enemies to eat pests; d. Proper use of pesticides as a last line of defense. C, BMPs Applicable to Individual Proiect Cate(~ories 1. Private Roads The design of private roadway drainage shall use at least one of the following (for further guidance, see Start at the Source [1999]): Page4of6 a. Rural swale system: Street sheet flows to vegetated swale or gravel shoulder, curbs at street comers, culverts under driveways and street crossings; b. Urban curb/swale system: street slopes to curb, periodic swale inlets drain to vegetated swalegoiofilter; c. Dual drainage system: First flush captured in street catch basins and discharged to adjacent vegetated swale or gravel shoulder, high flows connect directly to storm water conveyance system. d. Other methods that are ,comparable and equally effective within the project, as approved by the City. 2. Residential Drivewavs& Guest P~rkin~ The design of driveways and private residential parking areas shall use one at least of the following features. a. Design driveways with shared access, flared (single lane at street) or wheelstrips (paving only under tires); or, drain into landscaping prior to discharging to the storm water conveyance system. b. Uncovered temporary or guest parking on private residential lots may be: paved with a permeable surface; or, designed to drain into landscaping prior to discharging to the storm water conveyance system. c. Other features which are comparable and equally effective, as approved by the City. 3. Dock Areas Loading/unloading dock areas shall include the following a. Cover loading dock areas, or design drainage to preclude urban run-on and runoff. b. Direct connections to storm drains from depressed loading docks (truck wells) are prohibited. c. Other features which are comparable and equal effective, as approved by the City. 4. Maintenance Bays Maintenance bays shall include the following: a. Repair/Maintenance bays shall be indoors; or Form 5501 designed to preclude urban nm-on and nm- off; and Design a repair/maintenance bay drainage system to capture all wash water, leaks, and spills. Connect drams to a sump for collection and disposal. Direct connection of the repaix/maintenance bays to the storm drain system is prohibited. I required by~e City, obtain an Industrial Waste Discharge Permit OR c. Other features which are comparable and equally effective, as approved by the City. 5. Vehicle Wash Areas Projects that include areas for washing/steam cleaning of vehicles shall use the following: a. Self-contained; or covered with a roof or overhang; b. Equipped with a clarifier or other pretreatment facility; c. Properly connected to a sanitary sewer, as approved by the City; d. Other features which are comparable and equally effective, as approved by the City. 6. Outdoor Processing Areas Outdoor process equipment operations, such as rock grinding or crashing, painting or coating, grinding or sanding, degreasing or parts cleaning, landfills, waste piles, and wastewater and solid waste treatrnant and disposal, and other operations determined to be a potential threat to water quality by the City of Chula Vista shall adhere to the following requirements. a. Cover'or enclose areas that would be the most significant source of pollutants; or, slope the area toward a dead-end sump; or, discharge to the sanitary sewer system following appropriate treatment in accordance with conditions established by the applicable sewer agency. b. Grade or berm area to prevent nm-on from surrounding areas. c. Installation of storm drains in areas of equipment repair is prohibited. d. Other features which are comparable or equally effective, as approved by the City. Page 5 of 6 7. Ec~uioment Wash Areas Outdoor equipmenffaccessory washing and steam cleaning activities at projects shall use the following: a- Be self-contained; or covered with a roof or overhang; b. Be equipped with a clarifier, grease trap or other pretreatraent facility, as appropriate; c. Be properly connected to a sanitary sewer alSer obtaining a permit from the City of San Diego Metropolitan Wastewater Depamnent. d. Other features which are comparable or equally effective, as approved by the City. 8. Parking Areas To minimize the offsite ~ransport of.pollutants from parking areas, the follow~ng design concepts shall be considered, and incorporated and implemented where determined applicable and feasible by the City of Chula Vista: a. Where landscaping is proposed in parking areas, incorporate landscape areas into the drainage design. b. Overflow parking (parking stalls provided in excess of the City of Chula Vista's minimum parking requirements) may be constructed Mth permeable paving. c. Other design concepts that are comparable' and equally effective, as approved by the City. 9. Fueling Area Fuel dispensing areas shall contain the follow ing: a. Overhanging roof structure or canopy. The cover's minimum dimensions must be equal to or greater than the area within the grade break. The cover must not drain onto the fuel dispensing area and the downspouts must be routed to prevent drainage across the fueling area. The fueling area shall drain to the project's treatment control BMP(s) prior to discharging to the storm water conveyance system. b. Paved with Portland'cement concrete (or equivalent smooth impervious surface). The use of asphalt concrete shall be prohibited. c. Have an appropriate slope to prevent ponding, and must be separated from the rest of the site by a grade break that prevents nm-on of urban ranoff. d. At a minimum, the concrete fuel dispensing Form 5501 area must extend 6.5 feet (2.0 meters) from the comer of each fuel dispenser, or the length at which the hose and nozzle assembly may be operated plus 1 foot (0.3 meter), whichever is less. e. Other features which are comparable or equally effective, as approved by the City. 10. Hillside Landscaping a. Hillside areas disturbed by project development shall be landscaped with deep- rooted, drought tolerant plant species selected for erosion control, satisfactory to the City of Chula Vista. b. Other features which are comparable or equally effective, as approved by the City. 11. Desitin of Drainage Systems for Industfial/Commemial facilities As required by the City in its sole discretion, Industrial/Commercial facilities with paved outdoor areas shall avoid sheet flow of runoff to the street gutter. Instead, all outdoor paved areas shall be directed to one or more storm drain sump(s) catch basin(s) before discharging to the public street gutter and/or public storm drainage systems. The sump(s) catch basin(s) shall be equipped with filters (inserts) or other Best Management Practices, satisfactory to the City of Chula Vista. Also, all private storm water facilities proposed shall be maintained by the property owner or approved private entity. The ongoing storm drainage systems maintenance records shall be kept on site indicating at the minimum, type of system, operator name, maintenance date, and maintenance activity type. No ma'mtenance agreement may be required. Maintenance of the proposed storm water facilities would be enf&rced by the City in accordance with the applicable City of Chula Vista ordinances, policies and regulations. JAEngin eerhNPD£ShNPDES ManuaBl~orm 5501I.do¢ Page 6 of 6 CHUtA VISI'A ENGINEERING 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5021 619-691-5171 FAX FORM 5502 CONSTRUCTION STORM WATER BMP REQUIREMENTS Appendix A Consumction Storm Water BlvI? Requirements: If the answer to the question ia S e~tion 1 is '`yes", the project is subject to Appendix C "Construction Storm Water BMP Performance Standards," and must prepare a Storm Water Pollution Prevention Plan (SWPPP) in accordance with guidelines presented in Form 5503 "Storm Water Pollution Prevention Plan Guidelines". If the answer to the question in Section 1 is "No", but the answer to any of the questions in Section 2 is "Yes," the project is subject to Appendix C, "Construction Storm Water BMP Performance Standards," and must prepare a Construction Storm Water Mauagement Plan (CSWMP) in accordance with the guidelines presented in Form 5504 "Construction Storm Water Management Plan Guidelines". If every question ia this Form 5502 is answered ''No," the project is exempt from any construction storm water BMP requirements. If any of the answers to the questions in Section 1 or Section 2 of this Form 5502 is "Yes," please complete Form 5505 "Construction Site Prioritization". Determine Construction Phase Storm Water Reqmrements: Section 1 Would the project meet the following criterion during construction? Yes No 1. Is the project subject to California's state wide General NPDES Permit for Storm Water Discharges Associated with Construction Activities? (Projects over 5 Acres, to be reduced t o 1 Acre on March 10, 2003) Section 2 Would the project meet any of these criteria during coustmcfion? Does the project propose grading or soil disturbance? Would storm water or urban ranoffhave the potential to contact any port ion of the construction area, including washing and staging areas? Would the project use any constmction materials that could negatively affect water quality if discharged from the site (such as, paints, solvents, concrete, and stucco)? Yes No J:~Engia~'~qPDES~IPDES Manual~Fotm 5502 l.doe Form 5502 Page 1 ofl CHUtA VIS'FA ENGINEERING 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5021 619-691-5171 FAX FORM 5503 STORM WATER POLLUTION PREVENTION PLAN (SWPPP) GUIDELINES AppendLx A The SWPPP shall be prepared in accordance with the requirements of the General Construction National Pollutant Discharge E1Lmination System (NPDES) Permit. At'a minimum, the Storm Water Pollution Prevention Plan (SWPPP), nmst c6ver the areas and the checklist below. The SWPPP must be kept on site and made available upon request of a representative of the City of Chula Vista. Projects that are also required to obtain a General Construction National Pollutant Discharge Elimination System (NPDES) Permit are encouraged to visit the State Water Resource Control Board's website for permit application instructions, Notice of Intern (NOI) and Notice of Termination (NOT) forms and guidance in preparing a Storm Water Pollution Prevention Plan (go to: www.swrcb.ca.gov/stormwtr/docs/constpermit). STORM WATER POLLUTION PREVENTION PLAN (SWPPP) REVIEW CHECKLIST The SWPPP shall address the required items marked in the left hand column of the table below: Description 1 The landowner (discharger) or his representative must sign the SWPPP, and include the date of initial preparation and the date of each amendment 2 Identify all Pollutant sources including sources of sediment 3 Identify non-storm water discharges 4 Identify and provide a time schedule for construction, implementati on, and maintanance of Best Management Practices (BMPs) 5 Develop a maintenance schedule for post --cons/ructien BMPs installed during construction A.I .d 6 Include project information, including vicinity and site maps A.5.a 7 Show drainage patterns and slopes anticipated after major grading activities are completed A.5.b.( I ) 8 Show all calculations for anticipated storm water mn -on, and describe all BMPs implemented to A.5.b.(1) divert off-site drainage described in Section A.5.a.2.(c) 9 Show drainage patterns into each on-site storm water inlet point or receiving water A.5.b.(2) 10 Show or describe the BMPs that will protect operational storm water inlets or receiving waters A.5.b.(2) flora contaminated discharges other than sediment discharges 11 Show existing site features that, as a result of known past usage, may contribute pollutants to A.5.b.(3) storm water 12 Show or describe the BMPs implemented to minimize the exposure of storm water to A.5.b.(3) contaminated soil or toxic materials 13 Show areas designated for the storage of soil or waste; vehicle storage and service areas; A.5.b.(4) coastmction material loading, unloading and access areas; and equipment storage, cleaning, and maintellance areas 14 Describe the BMPs for con trol of discharges fi'om waste handling and disposal areas and methods A.5.b.(5) Form 5503 Page 1 of 3 Permit Section A.I,A. 16 C.9 AA.a, A.5.b A.l.b A.l.c of on-site storage and disposal of construction materials and construction waste 15 Describe the Bix~s designed to minimize or eliminate the exposure of storm water to constru orion materials, equipment, vehicles, waste storage ~reas, or sem4ce areas 16 Describe ali post-construction BMPs for the proj eot, and show the location of each BIv~ on the map 17 Describe the agency or parties to be the responsible pan3' for long-term maintenance of these BMPs 1 $ include a narrative description of pollutant sources and BMPs that cannot be adequately communicated or identified on the site map 19 Include a narrative description of pre -construction control practices (if an),) to reduce sediment and other pollutants in storm water discharges 20 Include an inventory of all materials used and activities performed during construction that have the potential to contribute to the discharge o f pollutants other than sediment in storm water. Describe the Bivl~s selected and the basis for their selection to eliminate or reduce these pollutants in the storm water discharges 21 Include the fullowing information regarding the construction site surface area: the size (in acres or square feet), the runoffcoefficiant before and afier construction, and the percentage that is impervious (e.g., paved, roofed, etc.) before and after construction 22 [ include a copy of the NOI', and the Waste Discharge Identification (WDID) number if available 23 Include a consU-action activity schedule winch describes all major activities such as mass grading, paving, lot or parcel improvements at the site and the proposed time frame to conduct the?e activities 24 List the name and telephone number of the qualified person(s) who have been assigned responsibility for pre-storm, post-storm, and storm event BM~ inspections; and the qualified person(s) assigned responsibility to ensure full compliance Mth the Permit and implementation of all elements of the SWPPP, including the preparation of the annual compliance evaluation and the elimination of all unauthorized discharges 25 Include a description of the erosion control practices, including a time schedule, to be t implemented during construction to minimize erosion on disturbed areas of a construction site 26 Include an outline of the areas of vegetative soil cover or native vegetation onsite which will remain undisturbed during the construction project 27 Include an outline of all areas of soil disturbance including cut or fill areas winch will be stabilized during the rainy season by temporary or permanent erosion control measures, such as seeding, mulch, or blankets, etc. 28 Include an outline of the areas of soil disturbance, cut, or fill which will be left exposed during any part of the rainy season, representing areas of potential soil erosion wt~ere sediment control B/VIPs are required to be used during constraction 29 Include a proposed schedule for the implementation of erosion control measures 30 Include a description of the BMPs and control practices to be used for both temporary and permanent erosion control measu res 31 Include a description of the BMPs to reduce wind erosion at all times, wit~ particular attention paid to stock-piled materials 32 Include a description or illustration of BMPs which MI1 be implemented to prevent a net increase of ~ediment load in storm water discharge relative to pre -consm~ction levels 33 Include a proposed schedule for deployment of sediment control BMPs 34 Describe a plan to establish perimeter controls prior to the onset of rain, if work on active are as precludes the use of sediment control B/viPs temporarily, with prior authorization fi.om the San Diego Regional Water Quality Control Board. 35 Include a description of the BMPs to reduce the U'acking of sediment onto public or private roads at all times 36 Discuss road cleanlng BMPs (washing of accumulated sediment or silt into the storm drain system is not permitted) 37 Describe all non-stOrm water discharges to receiving waters that are proposed for the construction project. Include the locations of such discharges and descriptions of all BMPs designed for the control of pollutants in such discharges' Include the name and contact number of the qualified person who is assigned the responsibility for ensuring that no materials oth er than storm water are discharged in quantities which will have 38 Form5503 ^.5.b.(S) A.5.b.(6) A.5.b.(6) A.5.c.(1) ^.5.c.(1) A.5.c.(2) A.5.c.(3) A.5.c.(4) A.5.c.(5) A.5.c.(6) A.6 A.6.a.(1) A.6.a.(2) A.6.a.(3) A.6.a.(4) A.6.b A.6.c A.8 A.8 A.8 A.8 A.8 A.9 A.9 Page 2 of 3 an adverse effect on receiving waters or storm drain systems (consistent with BAT/BCT) 39 Include descriptions of the BMPs to reduce pollutants in storm water discharges after all A. 10 construction pries have been completed at the site (post -construction BM?s) 40 Address operation and maintenance ofconu'ol practices after construction is completed, including A. 10 short- and long-term fimding sources and the responsible party 41 Include a discussion of the program to inspect and maintain all BlVff's as identified in the site plan A. 11 or other narrative documents throughout the ent/re duration of the project 42 Include the name and telephone number ofthe qualified person assigned the responsibility to A.I.I conduct inspections and maintenance of all BMPs 43 Document all training of individuals responsible for SWPPP preparation, implementation, and A. 12 permit compliance 44 List names, telephone numbers, and addresses of all contra ctors, (or subcontrantors) and A. 13 individuals responsible for implementation of the SWPPP. Specific areas of responsibility of each subcontractor and emergency contact numbers should also be included J:LEngin ezr~q PDESL~qew Development'Form 5503.doc Form 5503 Page 3 of 3 CHUIA VIS1-A ENGINEERING 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5021 619-691-5171 F3D~ FORM 5504 Private Develovment/Redevelovment Proiects CONSTRUCTION STORM WATER MANAGEMENT PLAN GUIDELINES Private Development/Redevelopment Projects To Accompany All Private Permit Applications Not Subject to the NPDES Consrructien Permit In order to comply with the federal Clean Water Act, the state Water Code and City of Chula Vista Ordinances, the City of Chula Vista requires that proper~y owners complete a ~Conslruction Storm Water Management Plan (CSWMP) prior to issuance of any permit which is not subject to the NPDES Construction Permit. Projects that are subject to the NPDES Construction Permit will be required to file a Notice of Intent (NOI) with the State Water Resources Control Board, and submit a Storm Water Pollution Prevention Plan (SWPPP) to the San Diego Regional Water Quality Control Board and the City of Chula Vista. The purpose of a Construction Storm Water Management Plan (CSX,X%iP) is to document Best Management Practices (BMPs) that will be implemented to prevent pollutants (including sediment) from entering storm water conveyance systems and receiving waters. The CSWIv[P becomes a part of the Permit and is subject to enfomement by the Cib' of Chula Vista enforcement staffand others. Storm Water Management Plans include the elements described ia the following sections: Section 1: Re~luired Information- This section is used to provide the City with basic information necessary to evaluate project activities. Each of the items in this section must be completed. Section 2: Best Manaeement Practices- Best Management Practices (BMPs) must be selected and implemented to prevent erosion and construction- related materials, sediment, wastes and spills from entering storm water conveyance systems and receiving waters. Note: It is the responsibility of the property owner and the contractor to determine the types of BMPs that will be used, as well as the levels of application necessary to comply ~n~th the City's Storm Water and Grading Ordinances. Failure to prevent soil erosion and discharges of sediment and other pollutants from construction sites is subject to enforcement by the City or others. At a minimum, the City requires that the BMPs listed in Table A (attached) be installed and maintained for ali projects. Additional BMPs listed in Table B (attached) may also be required in correlation to a project's scope, potential for discharges and proximity to a watercourse or other receiving waters. Section 3: Certification- The property owner and contractor must sign this section certifying that they understand the City's minimum-requirements for storm water management of construction activities and will implement, monitor and maintain the selected B/viPs to ensure their effectiveness. A copy of the following guidance manuals can be found (upon requesO at the Engineering/Storm Water Management Unit Library of the City of Chula Vista. The entire manuals may also be ordered directly from the following sources: 1. Caltrans Manuals: Caltrans Publications Unit, Phone (916) 445-3520 2. California Storm Water BMP Handbook for Construction 3. City of Chula Vista Storm Water Standards Manual Form5504 SECTION 1. Required Information Permit Application Number. if any: Name of Project Contact Person: Title: I Phone #: Grading start date: I Grading finish date: Estimated amount of disturbed acreage: SECTION 2: Best Management Practices The goal of storm water management planning is to reduce pollution to the maximum extent practicable by implementing Best Management Practices (Birds). There are five categories of BMPs: 1) Erosion control practices, and; 2) Velocity reduction, and; 3) Sediment control practices, and; 4) Offsite sediment tracking control, and, 5) General site and materials management. BMPs bom each of the five ca~ego~es must be used together as a system in order to 'prevent erosion, sediment, wastes, spills, and residues from leaving the site. When properly implemented, monitored and maintained, BlffPs will function to prevent pollutants (including sediment) from leaving the site. It is the responsibility of the contractor to Project address or location: Project star[ date: I.~'N #: Project finish date: determine the types of BMPs that will bi used, as well as the levels of application necessary to comply with the City's Storm Water and Grading Ordinances. Best Management Practices Tables Tables A and B (attached) must be used to indicate those BMPs that Mil be used to prevent storm water pollution. At a minimum, the City requires that the BMPs listed in Table A be installed on all grading construction projects. However, some B/viPs may not be applicable to every project. For example, if storm storm drain inlets are not present, then Storm Drain Inlet Protection (BM]? SCI0) would not be applicable. Form 5504 [ ~-" ~5 Page 2 of 4 TABLE A REQUIRED MIN'[MLB~i CONSTRUCTION BMPs CALTRANS Storm Check Minimum Required Best Management Practic es (BMPs) Water BMP Handbook Selected Detail Step 1 - Select Erosion Control Method for Graded Slopes (choose at least one) Vegetation Stabilization Planting (see note 1) SS-2, SS-4 Hydraulic Stabilization Hydrosecding (see note 1) SS-3, SS4 Bonded Fiber Matrix (see note 2) SS4 Physical Stabilization Erosion Control Blanket (see note 2) SS-7 Step 2 - Select Erosion Control method for !~raded Flat Areas (slope < 5°/.) (choose at least one) Will use above Slope Control measures on flat areas also SS-2.3,4,7 Mulch, straw, wood chips, soil application SS.6. SS-8 De-silting Basin (must treat all site runoff) SC-2 Step 3 - If runoff is concentrated, velocity must be controlled using energy dissipater Energy Dissipater Outlet Protection (see note 3) I SS-10 t Step 4 - Select Sediment Control method for all disturbed areas (choose at least one) Silt Fence SC-1 Straw Wattlas SC-5 Gravel Bags SC-6. SC-8 Storm Drain Inlet Protection SC-1 [3 De-silting Basin (sized for 1 O-year flow) SC-2 Step 5 - Select method for preventing offsite tracldng of sediment (choose at least one' Stabilized Construction Enma.nce TC-1 Construction Road Stabilization TC-2 Entrance/Exit Tire Wash TC-3 Entrance/Exit Inspection & Cleaning Facility Step 6 - Select the General Site Management BMPs for each waste that will be on site Materials Management, Materials Delivery and Storage WM-I Concrete Waste Managemem WM-8 Solid Waste Management WM-5 Sanitary Waste Management WM-9 Hazardous Waste Management WM-6 Step 7 - General Site Management Employee and Subcontractor Training Each selected BMP must be shown on Grading Plan. IfBMP is not selected, explain why. 1. When Planting or Hydroseeding are selected for erosion control, the vegetative cover must be planted by August 1~ and established by October 1~. If in the opinion of the City Official the vegetative cover is not established by October additional hydraulic or physical erosion a~ntrol BMPs will be required. 2. These BMPs are temporary measures only when used without planting or hydroseeding. All slopes must have established vegetative cover prior to final grading approval. 3. Regional Standard Drawing D40 - Rip Rap energy Dissipata' is also acceptable for velocity reduction. 4. Not all projects will have every waste identified. The applicant is responsible for identifying wastes that will be o~ite and applying the appropriate BMP. For example, if concrete will be used, BMP WM8 should be selected. Alternative storm water protection measures may also be presented for City consideration in any category. Form 5504 lq.5¢ Page3of4 TABLE B RECOMMENDED BMPs FOR USE IN CONYUCTION WqTH MINIMUM BMPs Recommended Best Management Practices (BMPs) Step 1 - Site Development Considerations Scheduling Preservation of Existing Vegetation Vegetation Stabilization, Vegetation Buffer Strips Physical Stabilization, Dust Control Soil Stabilizers Other (submit description for approval) Stop 2 - Diversi6n of Runoff ':: Earthen Dikes Ditcbns and Berms Slope Drains Temporary Drains & Swales Step 3 -Velocity Reduction Check Dams Slope Terracing Step 4 - Sediment Control Brush or Rock Filter Sediment Trap Sediment Basin Step 5- General Site Management Employee and Subcontractor Training CALTRANS Storm Water Handbook Detail - Check BMP Selected SS-1 SS-2 SS-2 WE-1 SS-5 SS-9 SS-9 SS-11 SS-9 SS-4 SC-3 SC-2 Mater/als Management, Spill Prevention art Control WM-4 Waste Management, Contaminated Soil Management WM-7 Vehicle and Equipment Management: Vehicle and Equipment Cleaning NS-8 Vehicle and Equipment Fueling NS-9 Vehicle and Equipment Maintenance NS-I0 Coustrucfion Practices: Wamr Consewafion NS-1 Snmcmre Consmactinn and Painting Paving Operations NS-3 Dewatering Operations NS-2 AIteraative storm water protection measures may also be presented for City consideration in any category. Section 3 The following certification must be signed before a "Notice to Proceed with Construction "will be issued I have read and understand that thc City of Chula Vista has adopted minimum requirements for storm water management of construction activities. I certify that the BMPs I have seleced in Tables A and B will be implemented to effectively minimize the potentially negative impacts of this project's construction activities on storm water quality. I farther agree to install, monitor, maintain or revise the selected BMPs to ensure their effectiveness. I also understand that non-compliance with the City's Storm Water and Grading Ordinances may result in enforc*ment by thc City including fines, citations, stopwork orders, cease and desist orders and other actions. Company's Name: Contractor's Name and Si[mature: Date Form 5504 Page 4 of 4 CHUIA VISFA ENGINEERING 276 Fourth Avenue, Chula Vista, CA 91910 619-691-$02! 619-691-5171 FAX FORM 5504 Public Proiects In order to comply with the federal Clean Water Act, the state Water Code and City of Chula Vista Ordinances, the City of Chula Vista requires contractors to complete a Construction Storm Water Management Plan (CSWMP)~ for a Public Project that is not subject to the NPDES Construction Permit, prior to issuance of "Notice to Proceed" with the construction. The purpose of a Storm Water Management Plan is to document Best Management Practices (BMPs) that will be implemented to prevent pollutants (including sediment) from entering storm water conveyance systems and receiving waters. The Construction Storm Water Management Plan becomes a part of the contract and is subject to enforcement by the City of Chula Vista enforcement staff and others. Construction Storm Water Management Plan includes the elements described in the following sections: Section 1: Rerluired Information - This section is used to provide the City with basic information necessary to evaluate project activities. Each of the items in this section must be completed. Section 2: Best Management Practices- Best Management Practices (B/VIPs) must be selected and 'implemented to prevent erosion and coustmcfion-related materials, sediment, wastes and ~pills fi.om entering storm water conveyance systems and receiving waters. Note: It is the responsibility of the contractor toI determine the types of BMPs that will be used, as well as the levels of application necessary to CONSTRUCTION STORM WATER MANAGEMENT PLAN GUIDELINES To Accompany All Public projects Not Subject to the NPDES Construction Permit comply with the City's Storm Water and Grading Ordinances. Feilure to prevent soil erosion and discharges of sediment and other pollutants from construction sites is subject to enforcement by the City or others. At a minimum, the City requires that the BMPs listed in Table A (attached) be installed and maintained for all projects. Additional BM_Ps listed in Table B (attached) may also be required in correlation to a project's scope, potential for discharges and proximity to a watercourse or other receiving waters. Section 3: Certification - The contractor must sign this section certifying that they understand the City's minimum requirements for storm water management of construction activities and will implement, monitor and mainta'm the selected BMPs to ensure their effectiveness. A copy of the following guidance manuals can be found, upon request, at the City of Chula Vista Engineering/Storm water Management Unit Library. The entire manuals may also be ordered directly from.the follow'mg sources: 1. Caltrans Manuals: Caltrans Publications Unit, Phone (916) 445-3520 2. California Storm Water BM~ Handbook for Coustmction 3. City of Chuia Vista Storm Water Standards Manual Form 5504 ] ~7..~~ Pagelof4 · SECTION 1. Required Information ' permit Annlication Number: ' Name of Proieot Contact Person: Tire: } Phone #: Grading start date: I Grading finish date: Estimated amount of disturbed acreage: prqject Name: Prqject address or location: #: I Pro}ect start date: I Project finish date: SECTION 2: Best Mann_cement Practices The goal of storm water management planning is to reduce pollution to the maximum extent practicable by implementing Best Management Practices (BMPs). There are five categories of BMPs: 1) Erosion contol practices, and; 2) Velocity reduction, and; 3) Sediment control practices, and; 4) Offsite sediment tracking control, and, 5) Oeneral site and materials management. BMPs from each of the five categories must be used together as a system in order to prevent ~asinn, sediment, wastes, spills, .'and residues from leaving the site. When properly implemented, monitored and maintained. BMPs will function to prevent pollutants (including sediment) from leaving the site. It is the responsibility of the property, owner and the contractor to determine the types of BMPs that will be used, as well as the levels of application necessary to comply with the City's Storm Water and Grading Ordinances. Best Manaeement Practices Tables Tables A and B (attached) must be used to indicate those BMPs that will be used to prevent storm water pollution. At a minimum, the City requires that the BMPs listed in Table A be installed on all grading and building projects. However, some BMPs may not be applicable to every project. For example, if storm drain inlets are not present, then Storm Drain Inlet Protection (BMP SC10) would not be applicable. Grading Plan/Improvement Plan Best Management Practice Checldist The following information shall be shown on the plans: I. 2. 3. The project boundaries. The footprint of any existing structures and facilities. The footprint of all structures and facilities to be constructed. 4. The limits of grading 5. The existing and proposed ~ades of the site, along with any intermediate grades that will signifmntly affect the site drainage pai~eras. 6. The location(s) where runoff from the site may enter storm drain(s), channel(s), and/or receiving waters. 7. The permanent BMPs. Form 5504 Page 2 of 4 TABLE A KEQUI2~ED M1NIMLFM CONSTRUCTION BMPs CALTRANS Storm Cheek If BMP is not selected, Ylinimum Required Best Management Practices (BMPs) Water BMP Handbook Selected explain why. Detail Step 1 - Select Erosion Control Method for Graded Slopes (choose at least one) Vegetation Stabilization Planting (see note 1) SS-2. SS-4 Hydraulic Stabilization Hych-useeding (see note l) SS-3, SS-4 Bonded Fiber Matrix (see note 2) SS-4 Physical Stabilization Erosion Control Blanket (see note 2) SS-7 Step 2 - SdeL't Erosion Contral method for graded Flat Areas (slope < 5%) (choose at least one) Will use above Slope Control measures on fiat areas also SS-2,3,4,7 Mulch, straw, wood chips, soil application SS-6, SS-8 De-silting Basin (musttreat all site nmoff) SC-2 Step 3 - If runoff is concentrated, velocity must be controlled using energy dissipater' Energy Dissipater Outlet Protection*[sec ngte 3) [ SS-10 [ Step 4 - Select Sediment Control method for all disturbed areas (choose at le est one) Silt Fence SC-1 Straw Watlles SC-5 Gravel Bags SC-6, SC-8 Storm Drain Inlet Protection SC-10 De-silting Basin (sized for t 0-year flow) SC4 Step 5- Select method for preventing offsite tracking of sediment (choose at least one) Stabilized Construction Enwance TC-I Cons=ctionRoadStahi, .an Entrance/Exit Tire Wash Entmnc~tExit Inspection & Cleaning Facility- Step 6 - Select the General Site Management BMPs for each waste that will be on site Materials Management~ Materials Delivery and Storage ~ WM-I Concrete Waste Management WM-8 Solid Waste Management WM-5 Sanitary Waste Management WM-9 Hazardous Waste Management WM-6 Step 7 - General Site Management Employee and Subcontractor Tr~ning Notes: 1. When Planting or Hydroseeding are selected for erosion eantrol, the vegetative cover must be planted by August 1 ~ and established by October 1~t. If in the opinion of the City Official the vegetative cover is not established by Oct~er 1~, additional hydraulic or physical erosion control BMPs will be required. 2. These BMPs are temporary measures only when used without planting or hydrosending. All slopes must have established vegetative cover prior to final grading approval. 3. Regional Standard Drawing D-40 - Rip Rap energy Dissipater is also acceptable for velocity reduction. 4. Not all projects will have every waste identified. The applicant is responsible for identifying wastes that will be omite and applying the appropriate BMP. For example, if canerete will be used, B/vIP WM-8 should be selected· Note: Alternative storm water protection measures may also be presented for City consideration in any category. Form5504 i ~7..~~ Page3of4 TABLE B RECO5~'IENDED BlvLPs FOR USE IN CONJUCTION x3,qTH MINIMUM BM~s Recommended Best Management Practices (BMPs) Step 1 - Site Development Considerations Scheduling Preservatian of Existing Vegetation Stabilization. Vegetation Buffer Strips Physical Stabilization, Dust Control Soil Stabilizers Other (submit description for approval) Step 2 - Diversion of Runoff Earthen Dikes Ditches and Berms S lope Drains Temporary Drains & Swal:s Step 3 -Veloci .ty Reduetlon Check Dams Slope Terracing Step 4 - Sediment Control Brush or Rock Filter Sediment Trap Sediment Basin Step 5 - General Site Management Employee and Subcontractor Training Materials Management, Spill Prevention and Control Waste Management, Contaminated Soil Management Vehicle and Equipment Manzgement: Vehicle and E~uipment Cleaning Vehicle and Equipment Fueling Vehicle and Equipment Maintenance Construction Practices: Water Conservation Sumcmre Construction and Painting Paxfng Operations Dewatering Operations Storm Water Handbook DetalI SS-1 SS-2 SS-2 WE-I SS-5 SS-9 SS-9 SS-11 SS-9 lSS4 SC-3 SC-2 WM-4 WM-7 NS-8 NS-9 NS-10 NS-I NS-3 NS~2 Alternative storm water protection measures may also be presented for City consideration in any category. Section 3 The following certification must be signed before a Permit will be issued. I have read and understand that the City of Chula Vista has adopted minimum requirementS for storm water management of construction activities. I certify that the BMPs I have selected in Tables A and B will be implemented to effectively minimize the potentially negative impacts of this project'sannatruction activities on storm water quality. I further agree to install, monitor, maintain or revise the selected BMPs to ensure their effectiveness. I also understand that non-compliance with thc City's Storm Water and Grading Ordinances may resultin enforcement by the City including fines, citations, stopwork orders, cease and desist orders and other actions. Company's Name: Contractor's Name and Signature: Properly owner's Name & Signature: Date Date J:LEngin e~r~N PDES~'q PD ES Manua[tFema 5504 Private Ldoc Form 5504 CHUIA vISrA ENGINEERING 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5021 619-691-5171 FAX FORM 5505 CONSTRUCTION SITE PRIORITIZATiON Appendix A Determine Construction Site Priority In accordance with the Municipal Permit, each construction site with construction storm water BMP requirements must be designated with a priority: high, medium or Iow. This prioritization must be completed with this form, noted on the plans, and included in the SWPPP or CSWMP. Indicate the project's prior ity, by marking the appropriate priority, using the criteria below, and existing and surrounding conditions of the project, the type of activities necessary to complete the construction and any other extenuating cimumstances that may pose a threat to water quality. The City reserves the right to adjust the priority of the projects both before and during construction. [Note: The constzuction priority does NOT change construction BIVI~ requirements that apply to projects; ail construction BMP requirements must be identified on a case-by-case basis. The construction priority does affect the frequency of inspections that will be conducted by City staff. See Appendix C for more details on construction BMP requirements.] A) High Priority 1. Projects where the site is 50 acres or more and grading will occur during the wet season 2. Projects 5 acres or more and tributary to an impaired water body for sediment 3. Projects 5 acres or more within or directly adjacent.to or dischar~ng directly to a coastal lagoon or other receiving water within an envirom~entally sensitive area 4. Projects, active or inactive, adjacent or tributary to sensitive water bodies B) Medium Priority 1. Capital Improvement Projects less than 5 acres (i.e., water and sewer replacement pr ojeets, intersection and street re-alignments, widening, etc.) 2. Permit projects less than 5 acres in the public fight-of-way where grading occurs, for activities such as installation of sidewalk, substantial retaining walls, curb and gutter ~oi~ an entire street frontage, etc. 3. Permit projects less than 5 acres on private property where grading permits are required (i.e., cuts over 5 feet, fills over 3 feet). 4. Projects that don't correspond to the high priority or low priority project's criteria wi 11 be considered medium priority projects. C) Low Priority I. Capital Projects where minimal or no grading occurs, such as signal light and loop installations, street light installations, etc. 2. Permit projects ia the public right-of-way where minimal or no grading occurs, such as pedestrian ramps, driveway additions, small retaining walls, etc. 3. Permit projects on private property where grading permits are not required, such as small retaining walls, single-family homes, small tenant improvements, etc. J:~Engineer~ffPDESX/qPDES Manuai~Form 5505 I.doe RESOLUTION NO. At A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING A MITIGATED NEGATIVE DECLARATION (IS-02-05) AND APPROVING PRECISE PLAN PCM-02-05 TO REDEVELOP AN EXISTING SHOPPING CENTER AT THE SOUTHEAST CORNER OF THE INTERSECTION OF FOURTH AND THIRD AVENUE IN THE CENTRAL COMMERCIAL, DESIGN (C-C-D) ZONING DISTRICT. RECITALS 1. Project Site WHEREAS, the parcel that is the subject matter of this resolution is represented in Exhibit A attached hereto and incorporated herein by this reference, and for the purpose of general description is located at the intersection of Fourth Avenue and the Third Avenue extension ("Project Site"); and 2. Project Applicant WHEREAS, on August 8, 2001, a duly verified application for a Precise Plan (PCM-02-05) was filed with the City of Chula Vista Planning Division by Charles Miller, M.D., LLC (Applicant); and 3. Project Description; an application for a Precise Plan WHEREAS, the project will involve (1) demolition of four existing buildings totaling 18,300 square feet of retail space and a restaurant; (2) a new Sav-on drag store; (3) a new retail building that includes a drive-thru Starbucks store; (4) a Kiosk; (5) new landscaping and paving; and (6) grading. The exiting 5,000 square foot building and the La Fuente drive-thru restaurant will be remodeled; and 4. Environmental Determination WHEREAS, the Environmental Review Coordinator, in compliance with the California Environmental Quality Act (CEQA) has prepared a Mitigated Negative Declaration that was adopted by the Resource Conservation Commission (RCC) on December 2, 2002; and 5. Planning Commission Record on Application WHEREAS, the Planning Commission hearing was scheduled and advertised for February 19, 2003, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, and was continued to March 12, 2003, at which time the Plamfing Commission voted 6-0 recommending that the City Council adopt the Mitigated Negative Declaration and approve the project based on the findings and subject to the conditions listed below, in accordance with Planning Commission Resolution PCM-02-05; and 6. City Council Record of Application WHEREAS, a duly called and noticed public hearing on the Project was held before the City Council of the City of Chula Vista on March 25, 2003, to receive the recommendation of the Planning Commission, and to hear public testimony with regard to same. NOW, THEREFORE BE IT RESOLVED that the City Council does hereby find, determine and resolve as follows: B. 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 February I9, 2003, and March 12, 2003, and the minutes and resolution resulting therefrom, are hereby incorporated into the record of this proceeding. C. PRECISE PLAN FINDINGS That such use will not under the circumstances of the particular case be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. The existing site will be redeveloped resulting in an aesthetically enhanced, mom harmonious site that will include compatible building designs; style and scale, newly striped pavement and landscaping. According to the Chula Vista General Plan, Fourth Avenue is a gateway into the City's urban core from Highway 54. The project's site design and elements, and building and landscape architecture will improve the gateway entry by providing adequate building placement, harmonious building colors and materials, and adequate landscaping. Additionally, the off-site improvements will improve the circulation and aesthetics along Fourth and Third Avenue. Noise impacts to the residences located to the south of the site on a hill will be mitigated to a less than significant level by restricting delivery hours for the Sav-on store. 17- ,4 2 2. That such plan satisfies the principle for application of the P modifying district as set forth in CVMC 19.56.041. Section 19.56.041(A) states that the property is unique by virtue of topography, geological characteristics, configuration, access, traffic circulation or some social or historic situation requiring special handling of the development on a precise plan basis. The project site has an irregular shape, which limits the Applicant's ability to meet all of the development standards of the C-C zone. The Precise Plan enables the Applicant to redevelop the site with a functional shopping center, and to be in substantial conformance with the development standards. That any exceptions granted which may deviate from the underlying zoning requirements shall be warranted only when necessary to meet the purpose and application of the Precise Plan. Development of the site within the regulations of the development standards for the parcel is limited by site's constraints relative to its shape, available access points and existing uses. As a result, the project has been designed with certain building encroachments into the exterior setbacks, and a reduction in the number of required parking spaces through a shared parking design. These deviations are warranted given the constraints to the site and the need to upgrade the site to meet other standards of the CVMC. The approval of this plan will conform to the General Plan and the adopted policies of the City Of Chula Vista. The project has been evaluated in accordance with the General Plan and the goals and objectives of Chapter t of the General Plan relative to development at designated gateway entries into the City's urban core. The project site has a commercial land use designation and will be redeveloped resulting in the same use. The Precise Plan as described, will allow the project to be consistent with the goals and objectives of the General Plan. D. TERMS OF GRANT OF PERMIT The City Council hereby grants Precise Plan PCM-02-05 subject to the following conditions: Planning and Building Department 1. The Applicant shall install temporary erosion control devices including desilting basins, berms, hay bales, silt fences, dikes and shoring during construction activities. The Applicant shall obtain verification from the City Civil Engineer that the final grading and improvement plans comply with the California Regional Water Quality Control Board, San Diego Region Order No. 2001-01 and will implement Best Management Practices (BPMs). 3. The building plans shall show the location of the shopping cart area and identify how the area will be screened to the satisfaction of the Director of Planning and Building. The Applicant shall submit the design and colors for the Kiosk prior to the issuance of any building permits to the Planning and Building Department for review and approval. 5. The Applicant shall comply with all requirements of the Building Division including the following codes for 2001: · California Building Code · California Plumbing Code · California Mechanical Code · California Electrical Code · Energy Code 6. The Applicant shall submit a detailed landscape plan for approval by the City's Landscape Planner that will satisfy the following requirements: Plant 24-inch box evergreen tree species such as Canary Island Pine to provide visual screening for the residents south of the project site, and provide new planters along the eastern edge of the site. Provide additional "layering" of the selected screening shrubs along Fourth Avenue and the Third Avenue extension. Incorporate walls, ground contouring or berming in combination with plantings be used. · The Koelreuteria or Chinese Flame tree shall be used as the street tree in the design. · Provide a hedgerow planting along the length of both drive-thru aisles. · Provide a Water Management Plan per requirements of the City Landscape Manual during building permit submittal. The Applicant shall apply for and obtain approval of a planned sign program from the Director of Planning and Building prior to the issuance of any grading or building permits. Said sign program ghall not include a pylon sign.. Engineering Department 8. The Applicant shall install a raised median along the Third Avenue extension to the satisfaction of the City Engineer. 9. The Applicant shall submit the following prepared by a registered civil engineer in accordance with the City's Subdivision Manual: · Improvement Plans · Traffic Signal Plans · Striping Plans · Traffic Control Plans · Grading Plans These plans shall be submitted to the Engineering Department for review and approval prior to the issuance of any building or grading permits. 10. The Applicant shall submit Right-of-Way dedication documents prepared by a registered civil engineer or a licensed land surveyor to the Engineering Department prior to the issuance of building permits. 11. The Applicant shall relocate the traffic signal located at the southeast comer of Fourth and the Third Avenue extension, and any streetlights and utility poles as necessary for street widening improvements. 12. The Applicant shall pay the applicable Sewer Capacity and Traffic Signal fees upon the submittal of final building plans. 13. Demolition Plans or any other documentation showing existing buildings shall be submitted to the Engineering Department to determine the existing fixture credits for the sewer capacity fee. 14. The Applicant shall enter into a reimbursement agreement with the City for costs associated with the relocation of the traffic signal and storm drain related improvements within Fourth Avenue if requested by the City Engineer. 15. The Applicant shall obtain a grading permit in accordance with the Subdivision Manual and Grading Ordinance prior to the issuance of any building permits. 16. The Applicant shall be required to complete the applicable forms and comply with'the City of Chula Vista's Storm Water Management Standards Requirements Manual. 17. The Applicant shall implement Best Management Practices (BMPs) to prevent the pollution of storm water conveyance systems, both during and after construction. Permanent storm water requirements shall be incorporated into the project design, and shall be shown on the plans. Any construction and non-structural BMPs requirements that cannot be shown graphically must be either noted or stapled on the plans. 18. The City of Chula Vista requires that all new development and significant redevelopment projects comply with the requirements of the NEPDS Municipal Permit, Order No. 2001-01. According to said Permit, all projects falling under the /7-&7 Priority Development Project Categories are required to comply with the Standard Urban Storm Water Mitigation Plans (SUSMP) and Numeric Sizing Criteria. 19. Development of the project shall comply with all applicable regulations, established by the United States Environmental Protection Agency (USEPA), as set forth in the National Pollution 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 and requirements. Further, the Applicant shall file a Notice of Intent (NOI) with the State Water Resource Control Board to obtain coverage under the NPDES General Permit for Storm Water Discharges associated with construction activity and shall implement a Storm Water Pollution Prevention Plan (SWPPP) concurrent with the commencement of grading activities. The SWPPP shall include both construction and post-construction pollution prevention measures, and shall identify funding mechanisms for the maintenance of post-construction control measures. 20. The Applicant shall identify storm water pollutants that are potentially generated at the facility, and purpose Best Management Practices (BMPs) that will be implemented to prevent such pollutants from entering the storm drainage systems. 21. The Applicant shall provide a water quality study that demonstrates compliance with the requirements of the National Pollutant Discharge Elimination System (NPDES) Construction and Municipal Permits, including Standard Urban Storm Water Mitigation Plans (SUSMP) and Numeric Sizing Criteria requirements, with the first submittal of grading improvement plans in accordance with the City's Manual. Fire Department 22. Fire Department valves and connections shall be located in the front of the Sav-on building. 23. The Fire Department connection shall be separate from the back-flow device. 24. The Applicant shall provide a minimum rated fire extinguisher (2A-10BC) per 75 feet of travel distance. 25. One fire hydrant shall be provided for a water flow of 1,500 gallons per minute. 26. Fire Department access ways through the site shall be 20' wide with a 13' 6" unobstructed vertical clearance. 27. Access roads shall meet the Chula Vista Fire Department turning radius requirement. The Applicant shall contact the Fire Prevention Bearu for the appropriate turning radius dimensions, and subsequently obtain dimension verification by the City of Chula Vista Fire Department. The verified turning radiuses shall be identified on the building plans. Sweetwater Authority 28. The Applicant/owner shall enter into an agreement with the Sweetwater Authority for water facility improvements. STANDARD CONDITIONS 29. No truck deliveries shall be permitted between the hours of 10:00 p.m. and 7:00 a.m. during weekdays, and between 10:00 p.m. and 8:00 a.m. during weekends. 30. Any violations of the terms and conditions of this permit shall be ground for revocation or modification of permit. 31. This permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. Failure to comply with any conditions of approval shall cause this permit to be reviewed by the City for additional conditions or revocation. 32. Any deviation from the above noted conditions of approval shall require approval from the City Council. 33. The Applicant shall and does hereby agree to indemnify, protect, defend and hold harmless City, its City Council members, officers, employees and representatives, from and against any and all liabilities, losses, damages, demands, claims and costs, including court costs and attorney's fess (collectively, liabilities) incurred by the City arising, directly or indirectly, from (a) City's approval of the Precise Plan, (b) City's approval or issuance of any other permit or action, whether discretionary or non- discretionary, in connection with the use contemplated herein, and (c) Applicant's installation and operation of a facility permitted hereby, including, without limitation, ant and all liabilities arising from the emission by the facility of electromagnetic fields or other energy waves or emissions. Applicant/operator shall acknowledge their agreement to this provision by executing a copy of this Precise Plan where indicated below. Applicant's/operator's compliance with this provision is an express condition of this Precise Plan and this provision shall be binding on any and all of applicant's/operator's successors and assigns. 34. The site shall be developed and maintained in accordance with the final approved . plans which will include revised site plans, architectural elevations, exterior materials and color board, and landscape plans on file in the Plarming Division, the conditions contained herein, and the Chula Vista General Plan. 35. Approval of this request shall not waive compliance with all sections of Title 19 of the Municipal Code, and all other applicable City Ordinances in effect at the time of building permit issuance. to 36. This Precise Plan permit shall be subject to any and all new, modified or deleted conditions imposed after approval of this permit to advance a legitimate governmental interest related to health, safety or welfare which the City shall impose after advance written notice to the Permittee and after the City has given to the Permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/condition, may not impose a substantial expense or deprive the Permittee of a substantial revenue source which the Permittee cannot, in the normal operation of the use permitted, be expected to economically recover. 37. The Applicant/owner shall be responsible for the building and landscaping maintenance in accordance with the approved project and landscape plans unless the Director of Planning and Building approves modifications. 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 returned to the City Clerk and Planning Department. Failure to return a signed and stamped copy of this recorded document within ten days of recordation to the City Clerk shall indicate the property owner/applicant's desire that the project, and the corresponding application for building permits and/or a business license, be held in abeyance without approval. Said document will also be on file in the City Clerk' Office and known as Document No. Signature of Property Owner Date Signature of Representative for Ziebarth Associates Date INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that any one or more terms, provisions or conditions are determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable, this resolution and the permit shall be deemed to be automatically revoked and of no further force and effect ab initio. THIS RESOLUTION OF APPROVAL IS HEREBY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA THIS 25th DAY OF MARCH 2003. Presented by Robert A. Leiter ApprjvAe~. as to~'o~yrlASy/'/J //~ J:\Planning\Micha¢l\Ci~y Council\PCM-02-05 CC Reso.doc / "7"' 7 t 9 COUNCIL AGENDA STATEMENT Item Meeting Date.3/25/03 ITEM TITLE: Report on request for an All-Way Stop at the intersection of Nacion Avenue and East Millan Street/Court SUBMITTED BY: REVIEWED BY: Director o£ Engi,n, eering~/ City Managev~?~..l/ r (4/5 Vote Yes X No) On November 1, 2002, staff received a letter from Chula Vista resident Christopher Bajkiewicz requesting that an all-way stop and a painted crosswalk be installed at the intersection of Nacion Avenue and East Millan Street/East Millan Court to control the speed of motorists traveling through the subject intersection on Nacion Avenue and to improve intersection safety for pedestrians crossing Nacion Avenue. Staff evaluated the intersection under the latest Council Policy and recommended denial of all-way stop control. The Safety Commission did not concur and under Council Policy 110-09, if staff and the Safety Commission do not concur, the matter shall go to City Council for final decision. RECOMMENDATION: That the City Council accept staff's recommendation to deny the installation of All-Way Stop Control at the intersection of Nacion Avenue and East Millan Street/East Millan Court based on the intersection receiving a total of 28 points out ora possible 100 points, where 45 minimum points are required to justify the installation of all-way stop control. BOARDS/COMMISSIONS: The Safety Commission, at their meeting of January 9, 2003, passed a motion MSC 5-0-2 (White/McAlister, with Gove and Acton absent) to not concur with staff's recommendation of denying the installation of all-way stop control and to refer this matter to the City Council for a final decision regarding the installation of all-way stop control at Nacion Avenue and East Millan StreeffEast Millan Court. DISCUSSION: On November 1, 2002, staff received a letter from Chula Vista resident Christopher Bajkiewicz requesting that an alt-way stop and a pa'rated crosswalk be installed at the intersection of Nacion Avenue and East Millan Street/East Millan Court to control the speed of motorists traveling through the subject intersection on Nacion Avenue and to improve intersection safety for pedestrians crossing Nacion Avenue. In Mr. Bajkiewicz's letter, he listed factors that attribute to unsafe driving conditions along Nacion Avenue, including geometric alignment of the roadway, morning and afternoon peak traffic and an increase in commercial vehicle traffic. He stated that Nacion Avenue is being used as a thoroughfare to reach both the 1-805 freeway and the schools along East "J" Page 2, Item /o~ Meeting Date 3/25/03 Street. He also stated that, due to the roadway alignment, southbound motorists travel through the subject intersection at unsafe speeds and often cross into the northbound lane where there have been "close calls" with pedestrians trying to cross the street at that same location. The intersection of Nacion Avenue and East Millan Street/East Millan Court is a four-legged intersection with Nacion Avenue extending north and south of the intersection. Nacion Avenue is a two-lane Class III Collector street with allowed parking on both sides of the roadway, and is 40' wide curb-to-curb. This roadway has an Average Daily Traffic (ADT) of 3,920, a 30 mph posted speed limit and 85th percentile speeds of 39 and 34 mph for the southbound and northbound directions, respectively. East Millan Street extends west from the subject intersection, is 36' wide curb-to-curb and is a two-lane residential street with parking on both sides of the street. It has an eastbound approach ADT of 1,769 and a 25 mph prima facie speed limit. East Millan Court extends east from the subject intersection and is a cul-de-sac with allowed on-street parallel parking. It has a westbound approach ADT of 69 and a 25 mph prima facie speed limit. Staff completed an all-way stop control evaluation for the subject intersection of Nacion Avenue and East Millan/East Millan Court. When considering an intersection for all-way stop control, several factors are studied to determine the need for installation. Pedestrians and vehicle volumes, accident history, and physical factors such as sight distances, speed of vehicles, and roadway alignment such as curves and topography are all taken into consideration. A review of the accident history for this intersection shows no reported accidents correctible by all- way stop control that occurred within a single 12-month period prior to the investigation date. In investigating the sight distance measurements, staff considers the available sight visibility (sight distances) for the minor street driver having an eyesight level of 3.5' looking at a 4.25' high oncoming vehicle on the major street. These sight distance measurements are then compared to the required stopping distance values, as listed in the Caltrans Highway Design Manual, table 201.1. Motorists traveling eastbound on East Millan Street, wishing to enter the intersection, have 232' and 220' of available sight distances when loo'king toward southbound and northbound traffic, respectively. These sight distances are neither adequate for the 39 mph southbound 85th percentile speed (requiring 290' of stopping sight distance) nor adequate for the 34 mph northbound 85th percentile speed (requiring 240' of stopping sight distance); however, they are adequate for the 30 mph posted speed limit (requiring 200' of stopping sight distance). The all-way stop Council policy warrant evaluation has been conducted and the subject intersection has been awarded points based on the following conditions: UNUSUAL CONDITIONS: (6 points assigned out of a maximum 21 points) · 2 points were assigned because the vicinity of the intersection provides for 80.0% of the required stopping sight distance. · 4 points were assigned because the southbound prevailing speeds are up to 10 mph higher than the speed limit. (39 mph 85th percentile vs. 30 mph posted speed limit). PEDESTRIAN VOLUME: (4 points assigned out of a maximum 20 points) · 4 points were assigned because 3 pedestrians were observed crossing Nacion Avenue during ' the hour of 2:00 p.m. to 3:00 p.m. /~. ~. J:~Engineer\aGENDAXNacion&EastMillanA113.doc Page 3, Item __ Meeting Date 3/25/03 TRAFFIC VOLUME: (13 points assigned out of a maximum 24 points) · 13 points were assigned due to the entering volumes of the intersection. * Three points are assigned each hour (for a maximum of 8 hours) when the total entering volumes cxceed 350 vehicles per hour (vph) and the minor street approach volumes are more than 140 vph. Two points are assigned each hour when the total entering volumes are greater than 350 vph and the minor street approach volumes are less than 140 vph but more than 70 vph. TRAFFIC VOLUME DIFFERENCE: (5 points assigned out of a maximum 10 points) · 5 points were assigned because of intersection volume ratio. The minor streets (East Millan Street/East Millan Court) approach volume is 46.9% of the major street approach volume (Nacion Avenue). This intersection received a total of 28 points of a possible 100 points, where 45 minimum points are required to justify the installation of all-way stop control. Therefore, staff recommends denial of the request to install all-way stop control at the subject intersection. During the public hearing of this item, additional concerns had been expressed regarding issues not reported in staffs study: · Installation of all-way stop control on East ,,j, Street and Nacion Avenue changed the traffic pattern of the area, thus increasing the volume of traffic on Nacion Avenue. · High volume of school-aged pedestrians in the vicinity of the intersection not accounted for in staffs pedestrian study. Based on these concerns, the Commission voted to recommend the installation of all-way stop control at this location. However, after listening to public and Commission comments, staffdecided to further analyze the above-mentioned additional concerns. Staff determined that the increase in the volume of traffic on Nacion Avenue was not directly attributed to the recent all-way stop installations along East "J" Street. but as a result of the general increasing volume trend throughout the city. Staff also noted that there were no school-aged children crossing Nacion Avenue in the vicinity of the intersection; therefore, an all-way stop at that location would be scarcely utilized as a pedestrian crossing. Based on the above analysis and receiving several phone calls after the meeting fi.om residents opposed to the all-way stop installation at this intersection, staff still believes that an all-way stop installation at Nacion Avenue and East Millan Street is unwarranted; therefore, staff recommends that the City Council concur with staff to deny the installation of all- way stop control at the intersection of Nacion Avenue and East Millan Street/East Millan Court. FISCAL IMPACT: If installed, $400 to install two R-1 "Stop Signs", two W-17 "Stop Ahead" signs, stop legends and limit lines. Attachments: 1. 2. Excerpt - Safety Commission Minutes of 1/9/2003 PowerPoint Presentation /g~ J:~Engineer~aGENDAXNacion&EastMillanA 113 .doc Safety Commission Minutes January 9, 2003 The following persons spoke in opposition to staff recommendation: Page 2 1. Anita Barrios, 146 Palm Avenue, Chula Vista 2. Raymond Mnichowicz, 339 Palm Avenue Public hearing closed. Commission Discussion: Chair McAlister and Commissioner Willett questioned staff regarding buses and sight distance. Commissioner Willett suggested the use of caution warning signs. Mr. Al-Ghafry stated they would not be used because there has not been any accident history. He stated that staff could contact the school district to possibly have a different drop off site for buses. Commissioner Willett also suggested using traffic calming measures. Commissioner White stated that he was leaning towards the installation of an all- way stop due the public input heard this evening and the phone calls received in favor of the stop. Chair McAlister had concerns with the "s" curve at the intersection approaching Palm and the east-west sight distance. Mr. Al-Ghafry stated that the stop bar could be placed in a better position and intersection warning signs could be installed. Chair McAlister stated he agreed with Commissioner White on the installation of an all-way stop. He asked Sgt. Arsenault if there was any police action in the area within the last few months. Sgt. Arsenault stated that there was a fatality at the 3200 block of Main Street- an intoxicated pedestrian hit by a car- quite a distance from the intersection of Otay Valley/Palm. He stated there is an officer assigned to this area, but there are very few citations issued. Mr. Al-Ghafry stated that if the Commission voted to not concur with staff recommendation, the City Engineer may take the Council for final resolution, unless the City Engineer decides to waive that right. Area residents would be notified if the item is forwarded to City Council. MSC (WhiteNVillett) to not concur with staff's recommendation and install an All-Way Stop Control at the intersection of Otay Valley Road and Palm Avenue. (5-0-2, Acton and Gove absent) Report on recluest for an Ail-Way Stol~ at the intersection of Nacion Avenue and East Millan Street/East Millan Court. On November 1,2002, staff received a letter from Chu[a Vista resident Christopher Bajkiewicz regarding traffic issues at the intersection of Nacion Avenue and East Millan Street/East Milian Court. Mr. Bajkiewicz stated that southbound motorists travel through the subject intersection at unsafe speeds and often cross into the northbound lane. He also stated that there have been ~close calls" with pedestrians trying to cross the street at that same location. The resident requested that an ali-way stop control be installed along with a painted crosswalk to improve intersection safety for pedestrians and to control the speed of motorists traveling through the subject intersection on Nacion Avenue. Mr. Al-Ghafry showed the Powerpoint Presentation. He stated 6 calls were received, 2 in favor and 4 against the all way stop. He clarified that pedestrian counts were taken at 2-3 pm and 2-4 pm and no one had crossed Nacion Avenue at that time. Staff also set up the speed counters for a 24-hour period. He also stated that stop signs are used to assign right-of-way, not to control speeds. If stop signs are improperly installed, it carries higher ramifications and liability than if they are properly installed. Staff Recommendation: That the Safety Commission concur with staff's recommendation to deny the installation of Ali-Way Stop Control at the intersection of Nacion Avenue and East Millan Street/East Millan Court based on the intersection receiving a total of 28 points out of a possible 100 points, where 45 minimum points are required to justify the installation of all-way stop control. Public hearing opened. The following persons spoke in opposition to staff recommendation: 2. 3. 4. Cynthia Relph, 366 E. Millan St., Chula Vista Frank Araiza, 381 E. Millan St., Chula Vista James Dobson, 375 E. Millan St., Chula Vista Richard Haenel, 736 Nacion Ave., Chula Vista Public hearing closed. Safety Commission Minutes January 9, 2003 Page 3 Commission Discussion: Commissioner Willett stated there is a speeding problem at this location and suggested traffic calming measures. Sgt. Arsenault stated that there are plans to assign a motor officer to this area. Commissioner White stated he supports installing an all-way stop due to public testimony and as a traffic calming measure. Commissioner Lopez stated he agreed with the community and supports the installation of an all-way stop. Commissioner Willett concurred with the comments made by Commissioners White and Lopez. Chair McAlister stated that he also supported the installation of the all-way stop. Mr. Al- Chaffy stated that if the Commission voted to not concur with staff recommendation, the City Engineer may take the Council for final resolution, unless the City Engineer decides to waive that right. Area residents would be notified if the item is forwarded to City Council. MSC (WhiteNVillett) to not concur with staffs recommendation and install an all-way stop control at the intersection of Nacion Avenue and East Millan StreetJEast Millan Court. (5-0-2, Acton and Gore absent) Report on request for Speed Hump Installation in the viciniW of Rancho del Rev Middle School This item was pulled from tonight's agenda. 9. Action Summarv Update/Staff Comments Mr. Al-Chaffy stated that staff has prepared a budget for a flashing beacon at "E" Street/Corte Maria. Aisc, staff has prepared a letter for the Charter Point Homeowners Association regarding tree trimming and red curb, but has not received a response. 10. Traffic Accident Summarv -October 2002, November 2002 Sgt. Arsenault stated there is a dramatic decrease in overall accidents for October and November and a significant increase (30%) in moving citations. 11. Staff Comments None. '~2. Commissioner Comments Commissioner White stated that all the signals have been installed at Medical Center Drive. Commissioner Perrett asked if staff could investigate the intersection of Heritage Road/Olympic Parkway. He observed some near-accidents from cars making right-hand turns onto eastbound traffic. Chair McAlister thanked staff for the December workshop; thanked Ralph Leyva, retired (Dec. 2002) Senior Civil Engineer; and welcomed Samir Nuhaily, Senior Civil Engineer and Alex AI-Agha, Deputy Director of Engineering. ADJOURNMENT AT 7:20 P.M. to the next regularly scheduled meeting of February 13, 2003. Respectfully submitted, Florence Picardal, Recording Secretary /8-5' 2 4 7 COUNCIL AGENDA STATEMENT Page 1, Item /? Meeting Date: 3/25/03 ITEM TITLE: Resolution: Amending the FY03 Police Department budget by adding Six (6) Communication Operator-II positions and one (1) Lead Communication Operator; reclassifying (3) Communication Operator-I positions to Communication Operator-FI, and creating a new Communication Operator- Trainee position; and authorizing advance hidng for up to 5 Communication Operator II positions. SUBMITrED BY: police Chief ~ Assistant City Manager Fruchter ~ REVIEWED BY: City Manager~/c,/ (4/5t~s Vote: Yes X No ) The Office of Budget and Analysis recently completed an analysis of the staffing needs in the Police Department's Communication Center. At present, staffing for the center is 23 operators, the same level as in Fiscal Year 1991, when the City's population was 137,885 and the department had 151 sworn staff. Today the City has grown to a neady 200,000 with 228 sworn staff. The staffing analysis involved updating a staffing model first created for the center in the late 1980's and last updated in FY92. The new model is based on an integrated computer- aided dispatch (CAD) system that was not in place at the time of the last update. Based on the analysis, it is recommended that seven civilian positions be added to the center, three positions be reclassified and several shift schedules be modified to optimize the center's effectiveness and efficiency. The study and recommendations were presented to the Chula Vista Employee's Association who support the staffing changes recommended. Funding for these cdtical positions is being included in the development of the FY04 proposed budget. RECOMMENDATION: Direct staff to amend the FY03 budget to add 6 Communication Operator II positions and 1 Lead Communication Operator position; to reclassify the 3 Communication Operator I positions to Communication Operator II positions; create a new Communication Operator Trainee position and place it in CVEA with an "A" Step salary of $39,302.05; authorize the advance hiring of up to 5 Communication Operator II positions so that staffing levels can be maintained as turnover occurs; and authorize a $0.75 houdy training differential for Communication Operator Ils assigned trainees and direct staff to include $486,000 in funding for this staffing augmentation in the FY04 proposed budget. BOARDS AND COMMISSIONS: None Page 2, Item. /~ Meeting Date: 03/18/03 DISCUSSION: During the eady and mid 1990s, budget constraints created staffing deficiencies in various areas of the Police Department. As the economy began to improve, the department successfully worked to correct deficiencies in the patrol division and in other sworn areas, where grants were available to offset start-up costs. During this period, it was possible to stretch the center's resources because: · Call for service rates for developing areas were lower than the rate for preexisting areas of the City; · Fire and emergency medical dispatching was contracted out to Heartland in 2001; and · Most importantly, because of the skills and dedication of existing staff. However, as discussed in the attached report, studies by the Jet Propulsion Lab for the Law Enforcement Assistance Administration observed that when communication operators work at high levels during peak call periods · Call waiting times can become excessive; · Messages are shortened; and · Patrol units cannot satisfactorily communicate with the dispatcher. To address communication center staffing issues, the department requested assistance from the Office of Budget and Analysis (OBA) to update eadier staffing models. This staffing model is the first to be based on a fully integrated Computer Aided Dispatch (CAD) system. Primary Staffing Issues The Office of Budget and Analysis evaluated staffing needs for the center's three functions: Function Call Intake Dispatch Radio Inquiry Radio Primary Workload (over a 12 month period) Handled 93,992 "911" calls; 176,319 business line calls and 185,000 field inquiries over a 12-month period Handled 73,487 911 calls and over 30,000 support calls resulting from officer initiated activities. Monitors the status of 15-50 field units. Handled 138,000 requests from units in the field related to possible stolen vehicles, outstanding warrants on suspects, etc. Based on updated workload standards, OBA recommends: · 3 additional operators to staff the dispatch radio position, thereby providing two dispatchers for weekday swing and day shifts; · 2 additional operators to staff the call intake and inquiry radio positions; Page 3, Item / ~ Meeting Date: 03/18/03 2 additional operators to free up 30% of the Lead Communication Operator's time for supervision. This is particularly important since, in addition to the recommended new operators, 4 current operators are expected to retire within the next 21 months. Six of the seven new positions will be Communication Operator lis. An additional Lead Communications Operator position is recommended to provide supervision on all shifts. The 7 new positions will increase the center's authorized staffing level from 23 to 30. Currently, the ratio of peace officers to operators is 6.0 officers to 1 operator. At full staffing, the ratio of peace officers to operators will be 4.6 officers to 1 operator. This will bring the ratio back to the FY99 level. It is recommended that as a general rule, the ratio should not rise above 5:1 before additional center staff are added. Reclassifications Of the 23 currently budgeted Communication Operator positions, 5 are Lead Communication Operators (LCO) supervisory positions; 15 are at the Communication Operator II (CO-II) level and 3 are at the Communication Operator I (CO-I) level. The CO-II level signifies a fully trained operator, able to handle all three of the Center functions: call intake, inquiry radio, and most importantly, dispatch. The CO-I position is a call taker only position. This position has not been trained to handle call dispatch, which, as discussed in the attached report is considered to be the most challenging of the three positions. Given the staffing needs of the City and the necessity for staffing flexibility, maintaining a separate call taker position is not tenable. Indeed, the literature indicates that separate positions by function are not efficient until 911 call volume reaches 300,000 calls annually. Chula Vista call volume is well below that level. As such, it is recommended that the 3 CO-I positions be reclassified to CO-Ils and that the current CO-Is be given the opportunity to become CO-Ils. The CO-Is will officially be promoted to CO-II the day they begin CO-II training and will have up to one year to achieve competency at the CO-II level. Until an individual CO- Is training commences the CO-I will remain in their current position under-filling a CO-II vacancy. All CO-Is wishing to remain with the department will be available to begin training within 4 months. Once there are no longer employees in the CO-I classification it will be eliminated. Seniority at the CO-II level will be based on the position an individual is assigned (e.g., the start date for CO-II seniority purposes for the three CO-Is is the pay period beginning April 4). It is further recommended that a new CO-Trainee position be created. New trainees without pdor experience would start at this level, moving to the permanent CO-II position upon successful completion of their training period. New trainees with significant experience would start at the CO-II level similar to police recruits. Page 4, Item. /~ Meeting Date: 03/18/03 Advance Hires Currently, the Police Department is permitted to hire up to 5 staff in advance of pending "sworn" vacancies, thereby helping to ensure that critical positions have a continuity of staffing. The civilian position of Communications Operator is a similarly critical position, affecting the level and quality of police services. Therefore, because of potentially lengthy training periods and "washout" rates, it is recommended that The Police Department be authorized, upon approval of the City Manager, to fill up to five (5) Communication Operator II positions in advance of pending vacancies. Phasing of New Staff Bringing the Center up to the recommended 30 staff is complicated by the following factors: · In general, a maximum of four (4) new staff can be trained at one time; and Between May 2003 and November 2004, four (4) of the current operators, including two LCOs, are expected to retire. That means that a significant number of new trainees will simply fill existing positions rather than increase staffing levels. Based on a very aggressive hidng and training schedule (see the report) the Center could achieve full staffing by December 2004. Between now and then, the following staffing milestones are projected: · Only 22 trained staff from May 03 through August 03, due to a planned retirement; · 26 trained staff from September 03 through October 03 · A reduction to 25 trained staff (Nov-Dec) due to a planned retirement; · 27 trained staff from February 04 through April 04. · 28 trained staff from May 04 through December 04; and · Full staffing (30 operators) by February 05. As detailed in the report, these time frames are subject to a variety of variables. Other Staffing-Related Recommendations Temporary Workers. The OBA study recommended that, as that time approaches, retiring LCOs and COs be surveyed concerning their willingness to fill-in during the later part of FY04. This would enable the Center to maintain higher staffing levels until additional new staff can be hired and trained. Page 5, Item /4 Meeting Date: 03/18/03 Bilinclual Operators. Currently, 4 of the 23 operators are bilingual. This number is insufficient to provide Spanish-speaking coverage on all shifts. To fill the gap, the City currently contracts with an interpretation service. The service provides access to an interpreter in various languages, resulting in a 3-way conference call. Over the next 21 months, the department will seek to increase the proportion of bilingual operators on staff. All potential candidates may be tested on the Critic-Call, multi-task software prior to hire. (This software is discussed in the report) Lastly, the department will also assess technology options (e.g. voice translators) to improve communications with residents who are not fluent in English. Staff Development and Traininq. In addition to the annual training mandated by POST, it is recommended that communication operators receive an additional 8- hours of training on specialized topics such as handling suicide and domestic abuse calls. Communication Officer Traininq Differential. In light of the unprecedented short- term training needs CVEA requested and it is being recommended that a differential of $0.75 per hour be provided to CO-II's assigned direct training duties through June 2005. The Hirinc~ Process. The OBA report strongly recommended that Criti-Call software be purchased this fiscal year to help expedite the hiring process. This software tests the ability of a candidate to function in a stressful, multi-task environment, resulting in a significantly faster hidng process than is currently being achieved. Future Issues Affecting Center Workload and Operations Wireless (cell phone) 911 Calls. The City is a primary Public Safety Answering Point (PSAP). As such, the City's Communications Center will soon be responsible for receiving all "local" 911 cell phone calls. Currently all local 911 calls made from cell phones are received first by one of f'rfty regional Califomia Highway Patrol (CHP) dispatch centers. These calls are screened for viability and consolidated (i.e., in the case of a multiple call event). CHP also screens out a significant number (approximately 60%) of accidental and non-emergency calls before routing them to local jurisdictions. The CHP is currently engaged in a pilot project with the City of San Francisco, using a global positioning system (GPS) to pinpoint cellular phone locations, sending freeway calls to the CHP and all other calls within the city limits to S.F.P.D.'s Communications Center. The new state mandate for PSAPs will soon require similar routing of wireless calls to Chula Vista, stipulating that the City will be fully compliant by the year 2005. The present phasing schedule is as follows: Page 6, Item Meeting Date: 03/18/03 Phase I (2004): Phase II (2005): Phase III (2006): The city acquires the technical ability to receive wireless 911 calls directly. CHP will begin automatically routing calls within a 1-3 mile radius of Chula Vista and other PSAPs. Compliance with the FCC mandate to plot a wireless call within 50 meters with GPS. Goal is for GPS to be installed in all new cell phones. It is projected that compliance with Phase II of the mandate by 2005 could increase the center's 911 call volume by 18% (over 13,000 calls) with a concurrent impact on staffing needs. A workload impact of that magnitude would require an updated staffing assessment and possible modification (lowering) of the 5:1 peace officer to communications operator threshold. Non-Emerqencv 911 Calls. A portion of the 911 call volume handled by the Center is non-emergencies. Therefore, to facilitate 911 dispatching, some communities have attempted to shift this workload to a dedicated 311 business line. The results have often been unfavorable. The City of San Jose's call volume, for example, increased by 100,000-200,000 calls per year. The increased calls were necessarily placed in long holding queues, resulting in public dissatisfaction. Thus, this option is not recommended for Chula Vista. Instead, the Police Department's Community Outreach unit will launch a community education program to reduce the number of non-emergency 911 calls, shifting these calls to the City's current business line. It is important to note that, if successful, 911 operations will be enhanced; however, the Center's overall workload will not decrease since business line calls are handled by the same operators. As such, it is recommended that, after the outreach efforts and before the E-911 transfer from CliP is completed, staff evaluate business line workload to determine if a portion of the workload could be effectively handled by less skilled and less costly staff. Internet Access in Patrol Units. This capability is currently being tested. It will allow officers to directly access ARJIS and Sheriff's Department data banks. Full installation is targeted for December 2003. As officers initiate more data bank searches more "hits" occur (e.g., identification of stolen vehicles, outstanding warrants). This, in turn, increases Center workload, since all "hits" must be confirmed by a communications operator. Conversely, officer initiated searches which do not "hit" reduce Center workload. Overall, it is anticipated that call inquiry workload will decrease when the new system is fully operational. GPS Software. To be installed by MiS for testing in July 2003. When fully installed, the Vehicle Locator System will automatically find the closest patrol unit Page 7, Item ]~ Meeting Date: 03/18/03 and backup unit(s) for high priority calls. The system will also recommend the next call to be dispatched based on prioritization and officer availability. CAD-Mobile Data Computers (MDCs) Connection. The current connection restricts the flow of information between the Communication Center and patrol units. The Information Technology Lieutenant is presently working with staff from MIS and the City Manager's office to procure a broader operating band from a wireless provider. Computer-Aided Dispatch (CAD) System. The existing CAD system was installed in 1999 and presently represents an older generation technology. At this time, it is not able to provide the records management that is required to serve the department, particularly the Crime Analysis Unit. Moreover, it is uncertain whether some of the new productivity enhancing systems being developed can be added to the current system. The report strongly recommends that Police and MIS staff meet soon to assess the need for replacing the existing system and/or for enhancing that system. In general, planning, procuring and installation of a new CAD system is considered to be a four-year process. This project should be added to the City's 5-year CIP. The department is also exploring the potential benefits of the department participating in a regional RMS through the Sheriff's Regional Communications System. 911 Phone System. $378,000 was recently received from the State to purchase new telephone equipment for the Center. The new VESTA phone system, which integrates with the existing CAD and mapping systems and radios, will improve methods for handling wire-line based and wireless-based 911 calls. All new phone equipment will be transitioned to the new facility Additionally, the Police Department is planning to use grant funds to procure a new software package (Management Information for 911) which will enhance the Center's ability to perform future workload studies. FISCAL IMPACT: For the current budget year, the cost increase associated with new staff is projected to be $66,780. There are sufficient salary savings in the department's current budget to cover this increase. In FY04 the total cost increase associated with the increased staff, advanced hires, etc is projected to be $486,000. Funding for this increase will be addressed in the FY04 proposed budget. The Police Department and City Manager's Office will work together to explore grants and/or other means to reduce the general fund impact during the coming fiscal year. Attachments: Staffing Study of the Police Communication Center, March 2003 RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 03 POLICE DEPARTMENT BUDGET BY ADDING SIX (6) COMMUNICATION OPERATOR-II POSITIONS AND ONE (1) LEAD COMMUNICATION OPERATOR RECLASSIFYING THREE (3) COMMUNICATION OPERATOR-I POSITIONS TO COMMUNICATION OPERATOR-II, AND CREATING A NEW COMMUNICATION OPERATOR-TRAINEE POSITION AND AUTHORIZING ADVANCE HIRING FOR UP TO FIVE (5) COMMUNICATION II OPERATOR POSITIONS WHEREAS, in FY 1990/91, the City had a population of 137,835, the Police Department had 151 sworn staffand the communication center had 23 operators to handle the call for service workload; and WHEREAS, by 2001/02 the City's population had grown to 190,949 and sworn staff totaled 228, and at present, staffing for the communications center remains at 23 operators; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby direct staff to amend the FY 03 Police Department budget to add six (6) Communication Operator (CO)-II positions and one (1) Lead Communications Operator position. BE IT FURTHER RESOLVED that the City Council does hereby reclassify three (3) Communication Operator-I positions to Communication Operator II positions. BE IT FURTHER RESOLVED that the City Council does hereby create a new Communication Operator-Trainee position and place it in CVEA with an "A' Step salary of $39,302.05. BE IT FURTHER RESOLVED that the City Council does hereby authorize the advance hiring of up to five (5) Communication Operator-II positions, so that staffing levels can be maintained as turnover occurs. BE IT FURTHER RESOLVED that the City Council does hereby authorize a $0.75 hourly training differential for Communication Operator Ils assigned trainees and direct staff to include $486,000 in funding for this staffing augmentation in the FY04 proposed budget. Presented by Richard Emerson Police Chief )oved as to~ City Attorney J:Xaaomey\resoXreport communication operators CITY COUNCIL AGENDA STATEMENT ITEM MEETING DATE: March 25, 2003 ITEM TITLE: Resolution 1) Approving selection of the energy consulting team of Duncan, Weinberg, Genzer & Pembroke, McCarthy & Berlin and Navigant Consulting, Inc. ("Duncan/Navigant") to analyze the financial, legal and technical feasibility of various possible municipal energy businesses, and alternatives thereto; 2) Authorizing and directing staff to negotiate a consultant services contract with Duncan/Navigant consistent with the terms and conditions outlined herein, and; 3) Directing staff to return with a final proposed agreement and appropriation of funds for council consideration. SUBMITTED BY: Assistant City Manager ,,~ 1/[ REVIEWED BY: City Manage-~'~._~ ~_~ ~ (4/5ths Vote: Yes__ No~"~J ,1~ \ X) In May 2001, in response to an unstable energy market, the City Council adopted the "City of Chula Vista Energy Strategy and Action Plan" (Attachment 1 ). Components of that plan included direction to staff to pursue a cost benefit analysis of: 1. Operating a municipal energy utility business, including the potential for ownership and/or operation of all or a portion of the local distribution system; 2. Becoming a municipal aggregator for the pumhase of electricity for City facilities, residents and/or businesses; and 3. Partnering with the Port District to repower and/or acquire capacity in a reconstruction of the South Bay Power Plant. At that time, the City Council preserved future municipal energy utility options by adopting an ordinance that established the City as a municipal utility. Since May 2001, City staff has implemented many of the Energy Strategy action items, and has developed considerable in-house expertise on energy issues. However, given the complexity of energy issues, specialty consulting services are now necessary to complete a cost/benefit options analysis. To complete the analysis, staff issued a request for proposal (RFP) for energy consultant services in December of 2002. The timing of this analysis is ideal. The expiration of the electricity and natural gas franchise agreements with San Diego Gas and Electdc provide the City with a unique opportunity to evaluate and make comparisons on the most cost effective means of providing reliable energy supply to March 25, 2003 Page 2 of 9 City facilities, residents and businesses and controlling at least some of the revenues generated by the delivery of energy to local residents and businesses. This report outlines staffs recommendation based on the consultant selection process. RECOMMENDATION Staff recommends that the City Council adopt a Resolution: Approving selection of the energy consulting team of Duncan, Weinberg, Genzer & Pembroke, McCarthy & Berlin and Navigant Consulting, Inc. ("Duncan/Navigant") to analyze the financial, legal and technical feasibility of various possible municipal energy businesses, and alternatives thereto; 2. Authorizing and directing staff to negotiate a consultant services contract with Duncan/Navigant consistent with the terms and conditions outlined herein, and; 3. Directing staff to return with a final proposed agreement and appropriation of funds for Council consideration. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION During the course of implementing the elements of the Energy Strategy and the development of its own expertise on energy issues, staff has become more keenly aware of the potential opportunities of some form of a municipal energy utility business (MEU). Whether or not some form of a municipal energy utility works for the City of Chula Vista is the subject of the proposed MEU analysis. The following are representative of the items that have peaked staff's interest in determining the feasibility of an MEU in Chula Vista. · U.S. Department of Energy data indicates that residential customers of an investor owned utility paid rates 16% above those paid by customers of a publicly owned system. Commercial customers paid 9% more. · A municipal energy utility could provide greater local control over energy revenues and programs. For example, current SDG&E programs for use of Public Purpose fees and Rule 20a undergrounding fees are beneficial, but might be improved and tailored to meet Chula Vista's goals and objectives under an MEU. Currently these programs are subject to CPUC regulations and SDG&E's own service territory-wide priorities. · An MEU could be a valuable economic development tool to attract and retain businesses and enhance local quality of life. · The City has been contacted by three separate entities extolling the potential benefits of an MEU. Although each contact was independent, the identification of potential benefits were similar in nature and content. March 25, 2003 Page 3 of 9 · As an MEU, the City could also more directly control the procurement of a renewal energy supply. · The City's size, growth potential, local power generation options, and an expiring energy franchise could present unique MEU opportunities. Develol~ment of the MEU Studv Scol3e of Work In December 2002, staff issued an RFP for consulting services to evaluate various possible MEU businesses, along with alternative approaches to meeting the City's energy objectives. In preparing the RFP, staff reviewed numerous RFPs on similar subjects that had been prepared, or were being prepared, for issuance by other California public agencies. Staff also consulted with and received input from SDG&E. Based on that input, staff implemented several revisions to the RFP Scope of Work. Staff also solicited proposals from consultants SDG&E recommended as qualified. Staff believes SDG&E input to this process is important and will continue to solicit such input where appropriate. The following city energy objectives were described in the RFP: Reliable energy supply delivered at stable rates A high level of customer service A cost benefit formula that justifies the City's time and investment An environmental benefit for City residents Broad distribution of MEU benefits The utilization of the MEU as an economic development tool to retain and attract businesses The RFP Scope of Work (Attachment 2) identified specific issues to be addressed by the energy consultant. Highlights of that scope of work are identified below. The scope of work was designed to get answers to the questions: Is it desirable for the City to pursue the implementation of an MEU business? If so, what form of MEU? Specifically, the following information was required: Identify the characteristics of Chula Vista that present opportunities or challenges to MEU implementation. Estimate and describe the costs, risks, potential environmental impacts and vulnerabilities of MEU formation and implementation; determine how such costs and risks can be managed and mitigated. Describe the current legal, regulatory, political and economic framework in which an MEU would operate, the challenges and opportunities presented thereby, and approaches to overcoming and taking advantage of same. Estimate the financial and human capital resources required for each stage of municipalization. Describe the potential benefits of an MEU operation in Chula Vista: In what specific ways could a Chula Vista MEU deliver benefits not currently provided by SDG&E? Identify alternative/lower risk approaches to MEU implementation March 25, 2003 Page 4 of 9 including potential partnerships with SDG&E. If justified, recommend an initial MEU business model that would implement City energy objectives. The RFP Process Issuance On December 20, 2002, staff distributed the RFP by mail and email to more than sixty energy-consulting firms (including SEMPRA, SDG&E's parent company). On January 9, 2003 approximately nineteen representatives from fifteen consulting firms attended the pre-bid conference. (SDG&E was also represented at the pre-bid conference.) Shortlist Selection On February 7, 2003 the City received nine responses to the City's RFP. A City MEU Selection Committee, approved by the City Manager, was formed to evaluate the proposals. This team included municipal industry experts as well as City staff: Bill Carnahan, Executive Director of Southem California Public Power Authority; David Wright, Deputy Director of City of Riverside Municipal Utility Department; Sid Morris, Assistant City Manager; Maria Kachadoorian, Director of Finance; Dave Byers, Director of Public Works-Operations; Glen Googins, Sr. Assistant City Attorney; Michael Meacham, Special Operations Manager; and Willie Gaters, Environmental Resource Manager. A preliminary screening was conducted, and each proposal was numerically scored and ranked based on the City's selection criteria published in the RFP. The top five respondents to the RFP were placed on a short list for interviews. Consultin(I Firm Rank {Assigned Score) Selected for Interview Shortlist R.W. Beck 1 (210) · Duncan/Navigant 2 (201) · Alliant Energy Integrated Services & SMH Team 3 (195) · Black and Veatch 4 (188) · GDS Associates & SAIC Team 5 (186) Not Selected for Interview · EES Consulting 6 (160) McDonald Partners & Michael Woods Team 7 (139) · Astrum Utility Services Team 8 (123) March 25, 2003 Page 5 of 9 · Milbank, Tweed Team 9 (94) Short listed teams were scheduled for interviews over a two-day period (Mamh 5- 6). Each interview lasted approximately 2 hours. The int.erview process included prepared questions that were provided to the energy consulting firms in advance as well as proposal-specific and industry-specific questions from the outside experts. The advance questions were designed to calibrate aspects of the energy-consulting firm's proposal with the City's RFP objectives such as project team make-up, assigned project manager, proposed tasks, deliverables, project · costs, schedule, presentation style and consultant's knowledge of the industry. The proposal-specific questions were designed to address the technical aspects of each proposal that required clarification or expansion (e.g. specificity as to the ratio of financial, technical, and legal services provided in the proposals to address the City's scope of work). Industry-specific questions were asked by the City's outside experts to gauge the energy consulting firm's understanding of the current energy environment and to gauge the consultant's level of sophistication. Following the interviews, the energy-consulting firms were again numerically scored and ranked based on overall presentation, technical expertise, cost, and the ability to adequately address the proposed scope of work. A key factor was each respondents intent and ability to provide the City Council with a firm "go/no go" recommendation on the implementation of an MEU business, or alternative approaches. The City's MEU Selection Committee unanimously, ranked the top two firms in the 1 and 2 positions. Duncan/Navigant and R.W. Beck, respectively were selected for further consideration. Consultin~l Firm Interview Rankin(~ (Assi~lned Score) Selected for Further consideration · DWG&P/MB and Navigant Consulting Team I (302) (All City MEU Selection Committee members ranked team in number 1 position) R.W. Beck 2 (267) (All City MEU Selection Committee members ranked team in number 2 position) Not Selected for Further Consideration · Alliant Energy Integrated Services & SMH Team 3 (202) · GDS Associates & SAIC Team 4 (151) · Black and Veatch 5 (145) Reference checks were conducted on both finalists. In addition, each firm was March 25, 2003 Page 6 of 9 requested to respond to an additional set of questions intended to "drill down" into the experience/background of each that was most directly related to the scope of work identified by the City. Examples of these questions include: Describe your team's level of knowledge with the Department of Water Resources (DWR) power contracts. Describe any involvement your team has regarding ongoing discussions pertaining to "exit fees" (i.e., the charge by the State of California to local jurisdictions to opt out of the State energy contracts). Provide a 5-year history, and relevant reference contacts, pertaining to "go/no go" recommendations for municipalization efforts. Please address/justify the need for legal services as part of the Phase I analysis. Staff was particularly interested in the consultant's response to the question on legal services. This component of the RFP was a major, differentiating point in the comparison of the two finalists - Duncan/Navigant and R.VV. Beck. As originally submitted, the two proposals addressed the technical aspects of evaluating the MEU options in a comparable fashion. One significant distinction between the two proposals was that Duncan/Navigant also included an integrated legal and legislative/regulatory analysis component. StafFs view is that a focused, integrated legal analysis of issues like exit fees, potential cost of wires acquisition and severance~ corporate structure and risks and liabilities is crucial to informed decision-making in this complex area. R.W. Beck was given an opportunity to revise the relatively limited legal component of its submittal in order to insure that staff could make an appropriate comparison of the component parts of the proposals and their related costs. R.W. Beck did identify qualified legal counsel with whom the City could work; what remained missing, however, was an integrated legal/business analysis with a set cost amount. Contract Cost Duncan/Naviaant: The original cost proposal submitted by Duncan/Navigant was $330,000. Based on preliminary discussions regarding clarification of scope and expenses, this amount was revised downward to $275,000, includin.q expenses. Work would be performed on a time and materials basis not to exceed $275,000. R.W. Beck: The original cost proposal from R.W. Beck was a fixed fee of $145,904 plus expenses. Based on preliminary discussions regarding clarification of scope, R.W. Beck revised its proposal to include legal services that were estimated (but not fixed) at $50,000. In addition, R.W. Beck's proposal assumed utilization of existing City agreements for legal services to supplement its legal component. Staff estimated that cost at between $25,000 - $50,000. In sum, this equates to a total contract price estimated (but not fixed) at $225,000 - $250,000 plus expenses. Consultant Recommendation March 25, 2003 Page 7 of 9 C4 Staff is recommending a contract with the Duncan/Navigant group based on the following analysis: The proposal as originally submitted (Attachment 3) was complete in its approach, addressing all of the major scope of work components. The consultant team Duncan/Navigant has a longstanding working relationship with one another, and past efforts by this group reflect extensive, detailed research in addressing the client's concerns. Duncan/Navigant was most knowledgeable in identifying the South Bay Power Plant and other possible local generation options as a potential key opportunity for a Chula Vista MEU. Duncan/Navigant was most clear in its intent and ability to provide the City with an "actionable intelligence". The consultant has relevant California experience including extensive work with California regulatory agencies. The consultant has demonstrated the experience and ability to deliver a report on time, within budget and according to established criteria. The consultant team exhibited the best overall breadth and depth of energy industry sophistication. Duncan/Navigant offered the greatest number of hours applied to the task, approaching, in many respects, a phase II level of analysis. Overall, the Duncan/Navigant team was identified as providing the best balance of skills and expertise necessary to deliver the required scope of work. If approved, staff will return to Council with a final contract consistent with the scope as outlined in the RFP. Consultant Selection Guidelines The consultant selection process complies with the guidelines established by the City. The proposed consultant has performed no work for the City, and earned no money, during the past twelve months. Further, Duncan/Navigant has identified no potential conflicts of interest. City Strengths and Weaknesses During the interviews, consultants were asked to identify the City's strategic strengths and weaknesses with regard to formation of an MEU business, Consistently, Consultants identified the following strengths: A proactive City Council. A successful municipalization effort requires community leaders to champion the effort. · A comprehensive Energy Strategy · A Franchise Agreement, which expires in 2003. March 25, 2003 Page 8 of 9 growing housing, commercial and industrial base. The City already owns energy infrastructure 'that has produced savings: (streetlights), and operates its own utility system (sewer). "Economy of Scale." A Chula Vista MEU customer base would be in the top 15 of all 48 utilities in California and would be in the top 50 to 100 of more than 2,000 public utilities nationwide (if the entire existing and proposed new developed territories are included). New (Greenfield) development could represent an excellent "low level of 113yes · tm~.L opportunity to begin a municipal utility. Chula Vista is roughly the size of a utility "regional office." Since utilities cover large areas, regional offices are set up as individual profits centers to better manage safety, reliability and operating costs. Chula Vista has an attractive energy (gas and electricity) load profile that would attract competitive bids for power contracts from private and public power providers. Attractive supply options exist with the potential repowering of the South Bay Power Plant. The energy consultants also commented that the City's strategic weaknesses include the following: SDG&E is likely to mount an aggressive challenge to any municipalization effort. A stabilizing energy market - in the near term - could draw consumer attention away from rising cost of energy. The financing cost of new construction and/or acquisition of energy infrastructure will be a major issue. The configuration, availability and proximity of energy infrastructure (gas pipes and electricity transmission) will present a challenge. Legislative changes on the state and federal level will influence the feasibility of all options since exit fees; stranded costs and severance fees are currently being established, and may change in the future. March 25, 2003 Page 9 of 9 FISCAL IMPACTS Adoption of the proposed resolution requires an appropriation from the unappropriated balance of the General Fund. The cost proposal for the MEU Analysis is for a guaranteed maximum price of $275,000 including expenses. Given the importance of this study in helping to compare the relative value of a long-term franchise renewal and on MEU business, staff believes this expenditure is more than justified. ATTACHMENTS: 1. City Energy Plan and Action Plan or Energy Strategy 2. MEU Scope of Work 3. Duncan Weinberg Genzer & Pembroke/McCarthy & Berlin and Navigant Consulting Team Proposal Attachment 1 City Energy Plan and Action Plan or Energy Strategy Attachment 1: Ener.clV Strategy MRW Assessment of Chula Vista's Energy Management Options [April 5, 20011 puraose of the Reaort tn light of the State's energy crisis, the City of Chula Vista secured the services of MRW and Associates to provide an assessment of energy management options which may allow the City to gain a measure of control over the City's demand and supply of energy as well as the financial costs of the City's energy use over time. The report is to provide a historical perspective and analysis of California's deregulation of the electricity market (first approved in 1996), and the dramatic developments in California's power and natural gas markets. A better understanding of the events leading up to the energy crisis will help the City of Chula Vista take a proactive approach to managing energy costs and supply. Based on this understanding, present a portfolio of options that help to: (a) insulate the City, its residents, and its businesses from unfair or unreasonable energy costs, (b) ensure the reliability of electricity supply, and (c) reduce adverse environmental impacts of energy production and use. Assemble the best options into the City's own Energy Action Plan. Identify the steps needed to implement the plan. Begin to identify and evaluate specific projects that have the potential to create unique opportunities and advantages for the residents and businesses of Chula Vista. Parameters of the Reaort 1. I~lectrisitv is the Fetus Electricity supply and cost is the primary focus of the report. Natural gas is a secondary focus a~beit an important one. Environmental impacts were considered, but were not the driving factor. 2~ 7arnnl Beneficiaries Cib/-owned and operated facilities. The City currently uses 14 MWhrs of electricity per year. 40% of that is used during off peak hours by street lights. The City's energy bill during year 2000 was $1.622 million. The February 2001 bill was $267,000 ($161,000 with a balancing account amount of $106,000). At the average rate of $267,000 per month, the City's energy bill for 2001 would double to $3.2 million. Residents. City residents currently use an average of 287.8 MWhrs of electricity per year. The City is projecting that new housing developments will add more than 2,000 units in each of the next two years. This represents an incremental demand for electricity of 11.8 million kWh, or 4% of Chula Vista's current residential demand. Businesses, both current and future. City businesses currently use an average of 405 MWhrs of electricity per year (commercial businesses use 304 MWhrs and industrial businesses use 101 MWhrs), Chula Vista is home to a number of manufacturing facilities where energy costs are a substantial component of overall costs. Providing these manufacturers with the means to manage energy costs will provide an incentive for the manufacturers to remain in Chula Vista, expand their operations and create new jobs. Energy incentive programs could also help attract new businesses to the City. 3. Timeframe f4)r Benefits to be Derived fr~m Enerav Plan A~tions · Short Term: Benefits could be realized within the next 12 months and thereafter. · Medium Term: Benefits could be realized within the next 1 to 3 years. · Long Term: Benefits could be realized within the next 3 to 7 years. MEU Feasibility Analysis 2003 Page 1 of 20 Attachment I Portfolio of Options Consistent with the above-described purposes and parameters, MRW developed a portfolio of 12 options to help the City better manage its energy needs and costs. THESE OPTIONS ARE EXPLAINED AND DISCUSSED IN GREATER DETAIL STARTING AT PAGE 7 AND ARE NOT ALL RECOMMENDED TO BE PURSUED AT THIS TIME. Additionally, each of the options listed below include specific tasks to implement. Based on an assessment of the benefits and risks of these options, the current market situation, and the implementation time frame for each option, MRW grouped the options into the following categories: HIGHLY RECOMMENDED [Options with Low or Manageable Risk and Potential for Short- Term Payoff]: · Continue/expand energy conservation projects in existing and future City facilities. · Continue/expand and promote energy efficiency and renewable energy programs for businesses and residents as well as provide community education. · Monitor the market and legal restrictions and be prepared to enter into a contract with an Energy Service Provider (as permitted by law).* · Develop and implement a legislative strategy that facilitates the City's overall Energy Plan. · Continue/expand efforts to implement the Carbon Dioxide (CO2) Reduction Plan and GreenStar Building Incentive Program (Staff generated; not in MRW Report). PROMISING [Options that Offer Significant Benefits but with Increased Risk and/or Medium Term Payoff]: · Pursue distributed generation opportunities for both City facilities and economic development opportunities. · Monitor the market and legal restrictions and be prepared to enter into a bilateral agreement with a power generator. · Partner with a third party to build and operate power generation facilities, · Develop an emissions offsets program based on mobile soumes (as permitted by law). * HIGHER RISK: [Options that Require Large Capital Outlays and/or Carry Significant Business Risks and have a Longer-Term Payoff] · Finance, own, and operate large-scale power plant to meet a portion of the City's demand for electricity. [Not recommended] · Form a municipal distribution utility to own and operate all or portions of local distribution system. · Become a municipal "aggregator" and acquire electricity at negotiated rates for the City, and include residents and businesses (as permitted by law).* · The passage of ABIX and the withdrawal of major ESPs from the market make these options effectively unavailable at this time. However, proposed competing legislation and different interpretations of ABIX may reverse this situation. Legislation will be needed to clarifi/relationship between AB1X prohibitions and aggregation previsions. "Opt out" legislation would make this option much more attractive. MEU Feasibility Analysis 2003 Page 2 of 20 Attachment A Timeline of Key Events in California Electric Industry Restructuring and Energy Crisis Prior to Deregulation 1996 1997 1998 t999 2000 May 2000 June 2000 August 2000 August 2O00 Retail electricity customers purchased "bundled" transmission, distribution and generation services from monopoly utility companies. Bundled prices were regulated by the CPUC on a "cost plus" basis. The average retail pdce for bundled electricity during the 90's pdor to deregulation was 9.5¢ per kWh. Governor Wilson signed AB 1890, putting California on course for deregulation. Theory of law is to reduce energy costs to consumers by unbundling energy services and offering access to alternative energy providers. The Independent System Operators (ISO) is created to operate (but not own) the state's transmission system. The Power Exchange (P×) is created to provide a transparent spot market for power purchases. Investor owned utilities are required to sell some of their power generation facilities and purchase their power from the PX. Power is to be sold at the highest "clearing" price bid into the market. The Public Utility Commission approves a request by San Diego Gas and Electdc to sell natural gas to Mexico to power the Rosadto generating facility. On April I the California Power Exchange began wholesale trading of electricity. Initially, power prices were reasonable, if not Iow. During the first two years of operation, the PX market averaged $29 per MWh ~ 2.9 cents per kWh). Utilities begin to divest themselves of generating assets. On July 1 the rate freeze is lifted in SDG&E's service ten'itory. SDG&E is the first to enter into the deregulated marketplace due to its rapid recovery.of its "stranded costs" (i.e., its unracoverad, pre-deregulation capital investment). Recovery of stranded costs comes from sales proceeds well above its book value for its power plants and stranded asset charges (CTCs) passed through to ratepayers. As a result, customers' rates begin to reflect the wholesale power pdces paid by SDG&E, including the volatile PX market prices. Note: The rate freeze is not lifted for Pacific Gas & Electdc (PG&E) and Southern California Edison ("SCE") customers setting up a situation where they cannot pass on volatile wholesale prices to customers. SDG&E customers' bills double from an average residential bill of $49 to $100 as the utility passes on high wholesale costs to consumers. The ISO declares the first of 36 Stage Two alerts, when power reserves drop below 5 percent. Rolling "blackouts" in San Francisco affect hundreds of thousands of customers. Insufficient power supplies due to several Northern California power plants shut down for maintenance cause the blackouts. SDG&E customers' bills have tripled. Wholesale electricity pdces dudng the months of May through September 2000 increased dramatically in the PX and ISO markets. In June 2000 pdces were 411% higher than in June 1999, increasing from $23 per MWh to $122 per MWh. (2.3¢ per kWh to 12.2¢ per kWh.) High wholesale prices prompt Gov. Gray Davis to call for an investigation into "possible manipulation in the wholesale electricity marketplace". The CPUC approves a 6.5C/kWh rate ceiling plan for SDG&E residential and MEU Feasibility Analysis 2003 Page 3 of 20 Attachment 1 September 20OO December 2001 January small business customers retroactive to June 1, 2000. (This action by the CPUC was preceded by the passage of AB 265, which set the 6.5 cents/kWh ceiling but needed to be implemented through a CPUC proceeding.) Larger businesses (with usage above 100 KW) continue to be susceptible to volatile wholesale prices. Electricity charges above 6.5 cents are not forgiven, but tracked in "balancing accounts" for later payment. No provision is made for the source of repayment. September 26: Davis signs two bills stemming from power crisis in San Diego. One would spread energy price increase for San Diego customers over several years, the other speeds up the approval process for new power plants. Electricity and natural gas pdces for the California markets reached record highs. Spot market prices for natural gas at the California border climbed to over $72 per MMBtu at one point on December 11, compared to pdces of $2 to $3 in 1998 and 1999, December 7: For the first time, the ISO declares a Stage Three emergency when power reserves fall below 1.5 pement. Officials say conservation efforts averted rolling blackouts throughout the state. December 15: Based on an investigation into the electdc markets in the western United States, the Federal Energy Regulatory Commission (FERC) orders a number of changes to the California electric market. These include: (a) $150 per MWh "soft" pdce cap on wholesale electricity to remain in place until at least April 30, 2001; (b) an end to the utilities' obligation to buy and sell electricity in the PX market; (c) a "benchmark price" of $74 per MWh for five-year contracts; and (d) an order that the ISO governing board be replaced with a non-stakeholder board. December 26: Southern California Edison sues FERC, alleging the government body failed to ensure that wholesale electricity is sold at "just and reasonable rates". The South Bay and Carisbad generating plants experienced 13 days of natural gas "curtailment," and were fomed to run on fuel oil or shutdown. Power generators begin to refuse to sell power into the California ISO/PX system on credit due to the increasing questionable credit worthiness of PG&E and SCE. In response, federal authorities require generators to sell their excess power into California if requested by the ISO. SCE and PG&E declare that they are teetering on the verge of bankruptcy. Because SCE and PG&E are unable to pass along to customers their full cost of procuring power; they have seen their financial condition worsen every month since the summer of 2000. In response, Governor Davis declares a state of emergency. Emergency legislation allows the state Department of Water Resources to buy and sell electricity up to a $400 million limit. This authority expired on February 15, but is later extended. January 2: Davis joins SCE's suit against FERC, filing a friend-of- the court brief. He says the commission "has failed in its responsibility to protect Californians from what the agency itself describes as a dysfunctional market for electricity". January 4: PUC votes 5-0 to approve rate hikes for PG&E and $CE. The increases are 9 percent for homes, and between 7 percent and 15 percent for businesses. MEU Feasibility Analysis 2003 Page 4 of 20 Attachment 1 2001 February 2001 March 2001 April Govemor Davis signs into law AB1X authorizing the Department of Water Resources to begin buying power to serve California. Governor Davis sets a target of $69/MWh for a portfoliq of long-term contracts. To date the electricity contract information has been kept confidential by the Governor's office. Multiple bills (discussed in the legislative update) are prepared to address the crisis. Governor Davis is negotiating the possible state acquisition of the utilities' transmission assets in an effort to restore the financial condition of the utilities. Governor Davis signed into law AB 1X authorizing the Department of Water Resources to begin buying power to serve Califomia. Governor Davis set a target of $69/MWh for a portfolio of long-term contracts. AB 1X also suspended direct access for California's retail electricity customers. The Legislature worked through a review of multiple bills (discussed in the legislative update) to address the crisis. Governor Davis attempted to negotiate the possible state acquisition of the utilities' transmission assets in an effort to restore the financial condition of the utilities. The Govemor reached a tentative deal with SCE, Under the terms of the deal with SCE, the state reportedly will pay about $2.7 billion, or 2.3 times book value, for the IOU's transmission assets. In return for the infusion of cash from the state, SCE is agreeing to a 10-year contract at cost-plus rates for power from some of its assets. SCE also will be raquirad to drop a federal lawsuit in which it sought to back-bill customers for past procurement costs. Qualified Facility (QF) owners and operators shut down plants totaling about 3,000 MW because they have not been paid by the utilities for several months for energy deliveries. QF's include dozens of small and medium sized power generators that use wind, solar, co-generation and other sources to produce power. Due in part to the shut down of QF plants, rotating blackouts affected customers in both southern and northern California on March 19 and 20. FERC ordered power suppliers to refund $69 million, ruling that power suppliers overcharged Californians by that amount in January. FERC found that overcharges for power sold in February totaled $55 million. CaI-ISO filed a report with FERC alleging power suppliers overcharged by $6.2 billion for power delivered to Califomia customers over the period May through November 2000. March 27: The CPUC ordered a three-cent per kWh increase in electric retail rates for Southern Califomia Edison and PG&E customers. April 5: In a televised statewide address, Governor Davis dropped his opposition to increases in electricity rates and called on the state's residents to continue conserving power. The Governor outlined a proposal for increasing electricity rates that is similar to the CPUC's March decision. The Governor also said the only long- term solution to the crisis is to build more power plants. The Legislature approved a package of legislation that will make available $1.1 billion for energy conservation programs. April 6: PG&E (the regulated utility) filed for Chapter 11 bankruptcy protection after failing to come to an agreement with Governor Davis on a state takeover of its transmission assets. MEU Feasibility Analysis 2003 Page 5 of 20 Attachment 1 Market Outlook Next I to 12 Months · The outlook for wholesale electridty prices in the short term is extremely uncertain. General market fundamentals point toward continued high and volatile prices during this time frame. · Some 2,368 MW of new generetJon is scheduled to come on line by the end of 2001, but whether this elong with increased conservation will be sufficient to fend off shortages is unknown (shortages appear Jncreesingly likely to occur). · The vast majority of the proposed new power generation is dependent on natural gas. Increased cost for netural gas has driven up the cost of producing electricity and is expected to do so until new delivery cepacity is added or conservation and alternative fuel sources reduce the demand sufficiently below supply to reverse the price trends. · Current efforts by the State of California (DWR) to secure wholesale power through long-term contracts may help to stabilize wholesale electricity prices and provide power at rates well below current wholesale spot market prices. · Retail rates for SDG&E customers could dse if the CPUC authorizes a 2.3 cents/kWh rate surcharge requested in January by SDG&E. The request is still pending with the CPUC. SDG&E requested the increase in order to begin "buying down" the approximately $600 million in the balancing account. Next 1 to 3 Years · Wholesale electricity prices should begin to level off, however prices are likely to remain much higher than in 1998-1999. Price stability should result from State's procurement of longer-term contracts. Higher pdces will result in part from higher input costs and in part from possible supply constrain~t$, particularly if hydroelectric resources remain Iow. · San Diego area customers may be in for a potential rate shock as a result of the e¢crual of large amounts of deferred power costs by the Califomie utilities. SDG&E's rete stabilization plan is set to end in 2002. It is unclear what the CPUC or the Legislature will do if SDG&E has an uncollected balance of purchased power costs - a likely though not certain outcome. Generally speaking, it could be expected that consumers will have a balancing account of about 50% of their total annual bill. · SDG&E's regulated distribution rates will be reviewed in 2003. This could lead to yet another increese in electricity rates. 3 to 7 Years Out · Wholesale electricity prices should further stabilize and begin declining as new sources of electricity supply and natural gas capacity come on line and demand response continues to take held. · Unless new power plants are located within SDG&E's service territory with adequate natural gas to supply them, transmission constraints in the San Diego area could limit the cost and reliability benefits to the region of new sources of electric supply being added to the state's grid. Constraints on the natural gas distribution system also could contribute to prices remaining high or a tight supply - demand situation. The proposed development of the Otay Mesa plant (500 MW with potential expansion to 1,000 MW) could provide approximately half of the power the region currently needs to import during peak loads, however the plant's sole source of fuel is natural gas and that could have an impact on the South Bay and Cadsbad plants ability to receive natural gas. MEU Feasibility Analysis 2003 Page 6 of 20 Attachment 1 Highly Recommended Options 1. CONTINUE/EXPAND ENERGY CONSERVATION PROJECTS FOR CITY FACILITIES. [OPTION 4, REPORT PP. 641 A. Rationale Current high pdces of electricity and improyed conservation technologies make the paybacks on energy efficiency facilities even more attractive. Therefore, capital investments in this area face minimal risk and should yield near-term paybacks and they have the added benefit of complementing the City's CO2 reduction plan. · Energy efficient facilities will reduce consumption and therefore reduce relative ongoing energy costs reRardless of the outcome of market reforms and other state or federal actions. · Legislative initiatives will make millions of dollars of funding available to lower the financial costs of energy conservation. Again, funding assistance reduces the City's dsk of pursuing energy efficiency options. Over $500 million in funding was pledged under AB 1890 to reinvigorete the renewable energy industry in California. So far, over $162 million has been paid for the' development of 500 MW of new renewable resources, while customers have received about $47 million in bill credits through October 2000 for buying power from renewable energy providers. a. ~l~xt StePs Background: Since 1993, the City's energy efficiency efforts have saved 3.7 MW of electricity and has resulted in cumulative savings of $1.15 million. The City's combined capital cost for these efforts is approximately $900,000 with about $110,000 in incentives from SDG&E. In Spdng 200'1, after installation of Green LED traffic signal lights, the City will have saved 4.7 MW of electricity with annual savings of $700,000/yr at slightly below current market pdces (savings based on average cost of $.15/kWw-hr for electricity including transmission/distribution ). · Provide additional energy design, management and funding support to the City Facilities Project Team. · Coordinate grant and other funding sources to implement energy savings. · Install additional energy savings measures in future buildings and design and install, where appropriate, retrofits in existing City facilities. · Coordinate efforts with energy service providers, the San Diego Regional Energy Office, the California Energy Commission and other agencies to take advantage of public facility programs and obtain energy conservation certifications for new and remodeled facilities. · Establish a modified work schedule for City employees, such as a 9/80 schedule. Under a 9/80 schedule employees, with the exception of emergency services department employees, will work 9 hours a day and have every other Fdday off. City services will be extended by one-hour per day on the 9 hour work days and City buildings and services will shutdown on Fddays that employees have off. One viable schedule could be from 7:00 a.m. to 5:00 p.m. with a one-hour lunch or from 7:30 a.m. to 5:00 p.m. with a half- hour lunch. MEU Feasibility Analysis 2003 Page 7 of 20 Attachment 1 Ce Fiscal Impact investment in retrofits. Some staff time may be eligible for offset by grants and/or SDG&E incentives. Staff costs could also be recovered through avoided costs from energy savings. The modified work schedule could render potential savings of up to I MW of City's annual non-street light electricity usage or a cost savings of up to $150,000/year based on average cost of $.15/kw-hr for electricity including transmission/distribution. The City can maximize savings from a modified work schedule by shifting as much of the workday from on-peak pedod (11:00 a.m to 6 p.m..) where electricity charges are highest to semi-peak pedod (6:00 p.m. to 11 a.m.) where charges are lower. 2. CONTINUE/EXPAND AND PROMOTE ENERGY EFFICIENT AND RENEWABLE ENERGY PROGRAMS FOR BUSINESSES AND RESIDENTS AS WELL AS PROVIDE COMMUNITY EDUCATION. [OPTION 5, REPORT PP. 67] A. Rationale · Making information on the power crisis readily available and supporting energy conservation or other energy management efforts may be a critical factor in convincing businesses where energy costs are a large component of an operating budget to remain located in Chula Vista. It will also help businesses remain competitive over the short run. High energy consumption businesses include high-tech and bio-tech manufacturers, refrigerated food wholesale and retailers, precision machine shops and aerospace parts manufacturers. · Increased state funding for promotion of conservation options is likely to become available. The City is in a good position to assist residents in availing themselves of these funds. · Conservation represents the lowest risk to the investor, and the highest benefit to the region and the environment. Every kilowatt saved or produced by an altemative source is a reduction on demand pressures that should result in lower costs for others. Conservation and alternative energy ara also most productive during peak hours when they are needed most. · Conservation and alternative energy have the added benefit of being good for the environment and complement the City's commitment to climate protection. · An array of proactive energy programs could be cdtical in assisting business attraction and retention activities. Note: The benefits of such programs may be difficult to measure in stdct cost-benefit terms. Note: Special Operations is in the process of distributing up to $100.00 of Compact Flourescent Lights (CFL) to 300 homes in the City (a total of 500+ homes have signed up leaving a waiting list of about 200 residents). The CFLs ara being distributed and installed by two trained Energy Administrative Interns who will also conduct energy and solid waste audits to identify additional conservation opportunities and to additional resource information. MEU Feasibility Analysis 2003 Page 8 of 20 Attachment 1 · Distribute free energy saving retrofits for existing residences. · Develop matching fund programs to assist local businesses with energy retrofits. Note: Special Operations is in the process of soliciting small businesses with 10 employees or less to participate in a matching fund program that will provide up to $1,000 for energy efficient lighting retrofit. The retrofit will be conducted by a licensed contractor who will conduct an energy audit and provide a proposal to the City and business for pdor approval. · Analyze available options to provide incentives to businesses that utilize renewable sources of energy (i.e. solar panels, wind power, distributive, etc.) = City matching funds = Grants or Iow interest loans (Sec. 108, CDBG, CEC Solar Energy Grant Program) ~ Rebates (in partnership with SDG&E) ~ Free publicity · Identify and support state and federal grant opportunities that encourage businesses to further develop or bring-to-market new energy-related technologies (i.e. wave technology, fuel cell, etc.) · Work with local retailers to market and distribute energy saving options. · Provide public education, information and assistance to residents and businesses so they may take advantage of rebate, loan and grant programs that assist energy conservation. This could include developing an Energy Conservation and Resource Guide. · Include energy resoume information on the City's website with links to relevant energy assistance websites (i.e.U.S. Dept. of Energy, SDG&E Small Business Services, San Diego Regional Energy Office, etc.) · Conduct business outreach workshops inviting guest speakers from vadous consulting groups and service organizations/agencies to provide information on energy conservation, renewable/sustainable sources of energy, and government programs that provide funding/rebates to support these efforts. · Partner with other service/community organizations to broadcast energy saving resoumes and tips to businesses via newsletters, information pamphlets and websites and coordinate efforts with the Planning Department. · Continue to utilize MRW to assist companies with contract negotiations as well as with general energy-related inquiries. C. Fiscal Iml~acl' Fiscal impact is primarily from substantial staff time from Special Operations, Community Development and Public Information. The first phase of retrofits for 300 homes and ten businesses have already been approved by Council. Additional costs could include the Energy Conservation and Resource Guide as well as consultant services from MRW to assist companies with individual contract negotiations (ranged from $500 to $1,000 per company). Existing funds are available for MRW services. The resource guide is estimated to cost about $1.00 per pdnted copy. MEU Feasibility Analysis 2003 Page 9 of 20 Attachment I 3. MONITOR THE MARKET AND LEGAL RESTRICTIONS AND BE PREPARED TO ENTER INTO AN ELECTRICAL SERVICES CONTRACT WITH AN ENERGY SERVICES PROVIDER (AS PERMil'rED BY LAW). [OPTION 6, REPORT PP. 71] A. Rationalo~ · About 55% of the City government's power purchases are bought at market rates. As a result, the March 2001 bill for electric/gas service was $303,688.40 (includes $106,004.50 electricity balancing account and $197,684.00 for electricity/gas. A contract with an ESP might provide electricity more cheaply than taking service from SDG&E. B. RIsks to Consider: · AB1X currently prohibits direct energy purchases for as long as the state has outstanding long-term contracts. This law needs clarification, and may be overturned, but for now, has squelched this market opportunity. · There is some risk that if market conditions improve in the next 1-3 years, a long-term commitment to an ESP will burden the City with higher cost electricity. C. Next SleDs: Seek Council authodzatiofl to execute contracts within the following parameters: · Pledge up to City's entire load (14MW). · The contract term should be for the shortest time possible, but not to exceed three years. · Establish a per kilowatt ceiling pdce under which staff has the authority to negotiate.. Note: Direct energy pumhases may be subject to legal restrictions under AB1X; any contract will require legal validation or escape clauses. D. Fiscal laDDer Stafftime, primarily from City Manager's office, Community Development and City Attorney. 4. DEVELOP AND IMPLEMENT A LEGISLATIVE STRATEGY THAT FACILITATES THE CITY'S OVERALL ENERGY PLAN. (STAFF GENERATED; NOT SPECIFICALLY REFERRED TO IN MRW REPORT) A. Raflonale~ Energy supply and cost issues will be dramatically affected by federal and state actions. Issues such as electricity supply costs, transmission reliability, natural gas supply/reliability, municipal utility operations, distributed energy, aggregation, environmental protection, power plant siting, direct energy procurement, and aggregation are all subjects of current Legislation. Favorable state laws could enhance and facilitate numerous City Energy Plan Options. B. Next Steps: Add a new category to the City's existing Legislative Program that embodies the City's goals in such key areas as environmental protection, electrical supply costs, transmissin reliability, natural gas supply and availability and power plant siting. This category would include the following: Support measures that: 1. Assist the City and its energy consumers improve supply/demand conditions and enhance conservation measures. 2. Preserve local options to control and fund the supply and distribution of energy (including the formation of a municipal utility district) or that fund conservation programs. 3. Enhance the City's ability to enter into distributed generation agreements without having to pay stranded transmission or distribution charges. MEU Feasibility Analysis 2003 Page 10 of 20 Attachment 1 Ce 4. Impose "fair and reasonable" wholesale pdce caps. 5. Repeal the provision in AB1X that suspends customer choice, and pass a favorable bill for customer choice (SB 27X or a similar one). 6. Make municipal aggregation programs available on an "opt-out" basis. 7. Allow public agencies (not just municipal utilities) such as the City to participate in state power supply programs. 8. Encourage use of real time metering. Oppose measures that: 1. Impinge on or restrict the City's ability to exercise land use review/control with respect to the generation or transmission of power. 2. Erode the City's ability to acquire/generate power from alternative sources, operate as a municipal utility, or enter into aggregation and/or distributed generation arrangements. Fiscal Impact Staff time, pdmadly from City Manager's office and Community Development. 5. CONTINUE/EXPAND EFFORTS TO IMPLEMENT THE CARBON DIOXIDE (CO2) REDUCTION PLAN AND GREENSTAR BUILDING INCENTIVE PROGRAM. (STAFF GENERATED; NOT INCLUDED IN MRW REPORT). A. Rationales The City recently adopted the Carbon Dio×ide (C02) Reduction Plan establishing 20 Action Measures to promote energy savings and emissions reduction. Implementation of the CO2 Plan allows the City to move forward with energy efficient land use and construction level programs. B. Next Ste#s: 1. Implement applicable measures in CO2 Plan under three tiers; Citywide General Plan Level, Site Planning (Sectional Planning Area) Plan Level and Individual Project (Building Permit) Level. · Study the feasibility of citywide land use measures as part of the General Plan Update. Evaluate possible locations for mixed use and higher density development near transit and major activity centers · Develop and implement "Sustainable Development" concepts in new SPA Plans through updating guidelines for preparation of Air Quality Improvement Plans (AQIP's) as a part of SPA Plan review · Develop and implement construction-level conservation measures in conjunction with energy efficient building programs that are at least 20% more energy efficient than current Title 24 Energy Code requirements. 2. Implement the GreenStar Building Incentive Program and promote energy efficient building practices. Identify air quality/energy conservation measures for implementation in new developments. 3. Conduct a "pilot study" through use of a consultant to establish a set of site planning and construction indicators (energy features and calculating methods), and to develop a customized computer model for use in analyzing development projects relative to air quality improvement and energy conservation. 4. Develop formal guidelines for the preparation of AQIP's based on the "pilot study" results and determine any necessa~ amendments to the Growth Management Ordinance. 5. Coordinate with the local development community and actively promote participation in available energy efficient building programs such as ComfortWise and Home Energy Partnership (HEP), and develop incentives to encourage this participation. MEU Feasibility Analysis 2003 Page 11 of 20 AEachmentl 6. Remain actively involved with the statewide Community Energy Efficiency Program (CEEP) to provide oversight for the development and implementation of energy efficient building programs and related incentives. C. Fiscal Impact Staff time primarily from the Planning and Building Department. The "Pilot Study" ($58,000) will be funded from an existing EPA grant, MEU Feasibility Analysis 2003 Page 12 of 20 Attachment 1 1. PURSUE DISTRIBUTED GENERATION OPPORTUNITIES FOR BOTH CITY FACILITIES AND PRIVATE ECONOMIC DEVELOPMENT OPPORTUNITIES. [OPTION 3, REPORT PP. 561 "Distributed generation" rafers to small power generation units (generally up to 30 megawatts) that are located near consumer or targeted load centers. Technologies include simple cycle gas turbines, microturbines, fuel cells and photovoltaics. A. ~Ralionale~ · Distributed generation can be used as a source of energy at peak pedods when power is most expensive. · Some types of distributed generation offer significant environmental benefits to the local area. · Because distributed generation can be accomplished with a Iow capital investment (relative to large-scale power plants), the financial risk to the City of this option is more manageable than pursuing the development of a City-financed power plant. · Current and proposed funding and incentive programs that are available for distributed generation projects enhance the attractiveness of this option vis-G-vis other options. In particular, the Legislature's Special Session could lead to new funding for disthbuted generation and potentially an easing of regulatory and market barriers to distributed generation. · Distributed generation can power just City facilities, or, depending upon capacity and location, could be utilized with adjacent industrial sites in an "over-the-fence" transaction. The City also should identify potential landfill gas resources and explore development of those resources, as has been done in the County at the Miramar, Sycamore and Otay landfills that use landfill methane gas to manufacture energy. In a hypothetical application of distributed generation at the Chula Vista Police Department, a best-case scenado for distributed generation provides power to the Police Department at about 7-8 cents per kWh at historical natural gas prices and 11-13 cents per kWh at current elevated pdces. Note: In terms of downside risk, there is some dsk the CPUC will rule in favor of the utilities' position on distribution stranded costs or other issues that could limit the financial attractiveness of distributed generation. B. Next Steps: 1. Solicit proposals for distributed generation projects at selected City facilities as well as for potential private economic development opportunities. Staff will solicit development proposals for specific generation facilities~echnologies on City-owned facilities that produce peak or full load generation at or below current market rates. City Facilities · Respondents ara to identify favorable sites and preferred technologies as well as cost estimates. Potential City sites identified by staff include (a) the new Corporation Yard on Maxwell Road; (b) the Civic Center Expansion/Police Facility; and (c) various library and recreation centers. MEU Feasibility Analysis 2003 Page 13 of 20 Attachment 1 Co Economic Development Opportunities · Staff will evaluate potential business development and retention opportunities and solicit development proposals for Distributed Generation and/or other developer/economic development "over the fence" transactions. · Potential Economic Development Opportunities include (a) Maxwell Road site (northern portion) (synergy with the landfill, Corporation Yard, Energy Way redevelopment potential); (b) LandBank site (northwest comer - synergy with Corporation Yard, landfill, LandBank and Auto Park redevelopment); and (c) BFGooddch site (new BFG campus developmentJCo-Generation opportunity). 2. Pursue the Solar Energy and Distributed Generation Grant Program offered through the CEC. Program offers rebates and/or other financial incentives for residential, business, and government users who purchase and install solar energy and distributed generation facilities. 3. Monitor CPUC proceedings and encourage decisions that facilitate the program. Fiscal Impact Staff time pdmadly from City Manager's office, Community Development and City Attorney's office. Depending on the outcome of some preliminary investigations by staff, there may be the need to secure the services of specialized legal, financial and/or energy consultants as various economic development proposals emerge. 2. MONITOR THE MARKET AND LEGAL RESTRICTIONS AND BE PREPARED TO ENTER INTO A BILATERAL AGREEMENT WITH A POWlER GENERATOR. [OPTION 7, REPORT PP. 74] A. Rationale: power supplier and obtain a longer-term access to electricity at a fixed or hedged price. Note: As with the ESP contract, described above, pursuing this option at this time could lead to the City locking itself into a power supply contract at a price that will be above market pdces in a more stable electricity market. B. Next Steps: Seek Council authorization to execute contracts within the following parameters: 1. Pledge up to City's entire load (14 MW). 2. The contract term should be for the shortest time possible, but not to exceed three years. 3. Authorize staff to negotiate an agreement up to but not to exceed a specified ceiling price. Note: Direct energy pumhases may be subject to legal restrictions under AB1X; any contract will require legal validation or escape clauses. C. Fiscal Impact Staff time pdmadly from City Manager's off~ce, City Attorney and Community Development. MEU Feasibility Analysis 2003 Page 14 of 20 Attachment 1 3. PARTNER WITH A THIRD PARTY TO BUILD AND OPERATE POWER GENERATION FACILITIES. [OPTION 2, REPORT PP. 53] A. Raflonal®~ · The City has an excellent opportunity to pursue this option with Duke Energy as part of the modernization of the South Bay plant. · A partnership can be structured in numerous ways to share the risks and benefits of development and operation, and to leverage what each party brings to the table. For example, in consideration for facilitating the redevelopment of the South Bay plant, the City could obtain dghts to receive a dedicated share of the plant's capacity, a share of plant revenues, and/or other public benefits such as Bayfront infrastructure, City facility energy projects, etc. · Proposed legislation may expedite the licensing and permitting process for new power plants (primarily peaking plants) and for the repowedng of existing power plants. Because this legislation will likely have sunset provisions (i.e., dates upon which they expire), the next one to three years may provide an ideal window to push through the development and siting of a power plant. B. Risks to Consider: · Competing legislation may reduce the attractiveness of owning or sharing in the development of a power plant. For example, legislation, if passed, may require the owner of a power plant to sell its electricity only to in-state customers, limiting the potential market for the plant's output (legislation pushing for this "California First" policy has been softened in latest versions and now is framed in terms of price parity for California vis-G- vis out of state customers). A more draconian measure proposed in new legislation would make any owner of a power generation facility a public utility subject to the jurisdiction of the CPUC (although the legal validity of such legislation is uncertain). · California's electricity market structure is still in a state of flux and there is considerable uncertainty as to how the market will operate in the future. This regulatory uncertainty is significant. C. N~rl Sto.~s: · Continue negotiations with Duke Energy and the Port District regarding the terms for redevelopment of the South Bay Plant. Basic premise is to derive public benefit in consideration of City facilitation of plant development. D. Klscal Imoad Staff time from City Manager's office, City Attorney's office and Community Development. As discussions advance, there may be the need to secure additional outside legal, financial and/or energy consultant services. 4. DEVELOP AN EMISSIONS OFFSETS PROGRAM BASED ON MOBILE SOURCES (AS PERMITTED BY LAW). [OPTION 10, REPORT PP. 831 New power generators must obtain emissions offset credits (CNG vehicles) or other conservation projects from the APCD to mitigate increased NOX pollutants. A. Rational®~ · Some City conservation programs could be utilized to obtain emission offset credits from conversion of diesel/gasoline-powered vehicles to Natural Gas power. These could be sold or utilized to facilitate local alternative sources of power generation or fund the conversion of City fleet vehicles to cleaner air vehicles. B. [Next Stops: MEU Feasibility Analysis 2003 Page 15 of 20 Attachment 1 · City staff should work with air quality officials to realize benefits of any City investment in alternative fuel vehicles (e.g. CNG buses) to allow the City to provide the value of those reductions to potential partners~ · City staff can also work with future generators and the APCD to ensure that any mitigation funds generated are invested locally. · Develop portfolio of potential offset projects to make available to new generation soumes requiring offsets. Staff time from Special Operations. MEU Feasibility Analysis 2003 Page 16 of 20 Attachment 1 Higher Risk Options 1. FINANCE, OWN, AND OPERATE A LARGE.SCALE POWER PLANT 1'0 MEET A PORTION OF THE CITY'S DEMAND FOR ELECTRICITY. [OPTION 1, REPORT PP. 49] _4. Rationale: · Plant ownership and efficient operation could provide protection from high and/or volatile wholesale electricity prices, a potential source of revenue if excess power is sold into the open market, and improved local electric reliability. B. Risks to C~addef: · The initial capital investment is estimated to range from $50 to $90 million and the plant could generate electricity for 10 to 12 cents per kWh at current natural gas prices (not including local distribution or transmission costs). · There are almost no examples of a municipally owned large-scale power plant except as part of a municipal utility. · Siting, building, and operating a large-scale power plant require specialized expertise and the negotiation of numerous regulatory hurdles. · A long-term market outlook suggests wholesale power prices will decline; this would put at risk the plant's financial viability. C. Next Stops: · In light of these risks, this option is not recommended at this time. This option may be revisited in the future if other options fail to achieve desired results. 2. FORM A MUNICIPAL DISTRIBUTION UTILITY TO OWN AND OPERATE ALL OR PORTIONS OF THE LOCAL DISTRIBUTION SYSTEM. [OPTION 9, REPORT PP. 77] The formation of a municipal utility could entail anything from the mere declaration of municipal utility status (akin to what San Marcos did recently), all the way up to ownership and operation of some portion of, or all of, a power generation and distribution system to serve some or all of the City's actual gas and electricity needs. To be able to control the delivery of power to any substantial segment of the population, the City would need to control or own some substantial portion of the distribution system. A. Rationale: · A municipal utility has preferential access to cheap federal hydropower (but there is a "waiting list" for access to this power) and potentially other alternative power supply sources. It does not pay federal income taxes, and it has access to tax-exempt debt to finance capital projects. · A municipal utility may be able to provide distribution services at a lower cost than the incumbent utility. Note, however, distribution costs ars not the primary driver of current high power costs. · By operating the distribution system the City would have the ability to structure rates in a manner that rewards conservation, encourages the use of off-peak power, and provides the City with control over how and where "public benefit," conservation funds are invested. MEU Feasibility Analysis 2003 Page 17 of 20 Attachment 1 B. ~isks to Consider: · With the structure of California's electricity market in flux, the outlook for a municipal utility is uncertain. It is unclear at this stage whether municipal utilities, particularly ones yet to be established, will be able to buy power from DWR. If they cannot, a City utility would have to procure power on the open market. · Lassen Municipal Utilities Distdct is the most recent example in California of a formation of a new municipal utility. LMUD now faces significant rate increases due to power procurement decisions that, with hindsight, were ill advised. SMUD also is planning to raise its electricity rates; however, this will be the firet rate increase in ten years and rates will still be lower than PG&E's electricity rates before this recent round of PUC approved rate increases. C. Next SleDs: · Commence negotiations with SDG&E for mutual beneficial partnerehips. · Conduct preliminary appraisal and pre-feasibility consultant services necessary to evaluate rough costs to acquire existing SDG&E facilities (or build new facilities) and evaluate legal/regulatory issues/obstacles. If approved by Council, issue an RFP for services to valuate SDG&E facilities. · Consider resolution to declare City a Municipal Utility (effective immediately with no real tangible benefits). · Coordinate any effort on this strategy with the efforts of other local jurisdictions. D. Fiscal ImDacl Staff time primarily from City Attorney, City Manager, and Community Development. Additionally, it is currently anticipated that the preliminary appraisal and feasibility consultant services would cost approximately $40,000 to $50,000. If after the pre-feasibility phase is completed, and the City elects to proceed, it is anticipated that the final phase would cost up to $250,000 that would produce a condemnation quality appreisal including severance issues analyzed and valuated. 3. BECOME A MUNICIPAL ·AGGREGATOR' AND ACQUIRE ELECTRICITY AT NEGOTIATED RATES FOR THE CITY, AND INCLUDE RESIDENTS AND BUSINESSES (AS PEP. MITrED BY LAW). [OPTION 8, REPORT PP. 74] A. Rationale= · Municipal aggregation offers the potential for lower electricity costs and certain non-price benefits at minimal initial capital investment. · The City of Palm Spdngs saved customers in its aggregation program $88,000 in only two years. (The progrem has since been suspended.) B. Risks to Consider= · Current law requires procedures whereby local residents and businesses must affirmatively "opt in" to an aggregation plan. This dramatically reduces participation, and therefore the benefits of aggregation. However, there is legislation currently under discussion to change this provision and allow municipal aggregation progrems to be done on an "opt-out" basis. If there is a change in the law, this option is more promising in terms of the potential benefits such a program could provide to Chula Vista's residents and businesses. · Although the risk to the City under this option is less than the above two options, municipal aggregation is likely to yield very minimal benefits while burdening the City with administrafive and contractual responsibilities. C. Next Stol)S: MEU Feasibility Analysis 2003 Page 18 of 20 Attachment I Support legislation that preserves consumer choices and authorizes uopt out" municipal aggregation programs. MEU Feasibility Analysis 2003 Page 19 of 20 Attachment 1 Summary of Major Action Items 1. Retrofit new and existing City facilities while also distributing retrofits to residents. 2. Pursue modified work schedule for City employees. 3. Continue/expand energy conservation projects for City facilities and promote energy efficient and renewable energy programs for businesses and residents. 4. Continue to monitor the market and negotiate with ESP's and Duke as the law allows - execute deal within specified parameters if obtainable. 5. Continue to monitor the legislative process and implement the Legislative Strategy. 6. Implement the CO2 Reduction Plan through efforts on three tiers: the Citywide General Plan Update, Sectional Planning Area (SPA) Plans/Site Planning, and Building Construction (GreenStar Program). 7. Implement the GreenStar Building Incentive Program. 8. Conduct a "pilot study" through use of a consultant to establish a set of site planning and construction indicators, and to develop a computer model for use in analyzing development projects relative to air quality improvement and energy conse, rvation. 9. Solicit proposals for Distributed Generation projects at selected City facilities and evaluate potential economic development "over the fence" transaction opportunities. 10. Pursue the CEC Solar Energy and Distributed Generation Grant Program for both City facilities and other economic development opportunities. 11. Negotiate (in cooperation with the Port District) public benefits with Duke Energy as new plant is entitled. 12. Develop an Emissions Offsets Program based on mobile sources (as permitted by law). 13. Negotiate with SDG&E for mutually beneficial opportunities. 14. Prepare Request for Proposals for consultant services to perform preliminary appraisal and pre- feasibility studies to valuate SDG&E facilities and analyze legal/ regulatory environment for municipalization. Estimated cost to $50,000. 15. Present resolution for declaring the City a Municipal Utility. Ne]el Steps 1. Based on Council direction at workshop, proceed with Major Action Items. 2. Determine overall Energy Strategy, staffing and management plan and more refined general implementation costs. 3. Present Energy Strategy and Action Plan to Council for formal adoption in June 2001, and repod on progress made on the Major Action items. J:\COMMDEV~HAYNES\EXECUTIVE SUMMARY.doc MEU Feasibility Analysis 2003 Page 20 of 20 Attachment 1 Attachment 2 MEU Scope of Work Chula Vista Municipal Energy Utility Analysis SCOPE OF WORK Phase I - Preliminary Report A. In General. Phase I is to prepare a wdtten report that analyzes the Municipal Energy Utility options available to the City. The report should answer the question: Is it desirable for the City of Chula Vista to pursue the implementation of a Municipal Energy Utility ("MEU"). If so, what form of MEU? The final report shall be presented to the City Council in a public workshop setting. B. Contents of Report. The report should, at a minimum: Consider and incorporate, if appropriate, previous City actions and analysis contained in the City's adopted Energy Strategy and Action Plan. Identify the characteristics of Chula Vista that present opportunities or challenges to MEU implementation. Describe the various forms of MEUs; give California examples where possible. Identify the risks/benefits, pros/cons or each. Describe, step-by-step, the MEU formation and implementation process. Include a timeline. Include descriptions of any required approvals from the CPUC, FERC, or other governmental agencies. Estimate and describe the financial and human capital resources required for each stage of municipalization. Estimate and describe the costs, risks, potential environmental impacts and vulnerabilities of MEU formation and implementation. How can costs be managed and risks mitigated? Describe the current legal, regulatory, political, and economic framework in which an MEU would operate, the challenges and opportunities presented thereby, and approaches to overcoming and taking advantage of such challenges and opportunities. Describe the potential benefits of MEU operation in Chula Vista: in what specific ways could a Chula Vista MEU deliver benefits not currently provided by SDG&E? Chula Vista Municipal Utility Formation Request for Proposal Page 2 Provide case studies, which illustrate both the potential benefits and pitfalls of an MEU. 10. Identify alternative/lower risk approaches to MEU implementation including but not limited to aggregation (e.g., types of partnerships with SDG&E or regional partnerships). Identify the risks/benefits, pros/cons of each. in completing this Section consider alternatives contained in the City's existing Energy Strategy and Action Plan. 11. If justified by the analysis, recommend an initial MEU business that would implement City's energy objectives. Provide a proposed outline of a Focused Feasibility Study and Implementation Plan for the recommended MEU. (Refer to City staff's draft outline for a Phase II analysis, attached). C. Draft and Final Reports. The report should be prepared initially in draft form for City staff comment. Intermediate draft reports may also be provided to SDG&E for review and comment prior to the preparation of the final report. Depending upon the timing of SDG&E's review and their comments, the final report may be delayed and/or modified to incorporate their comments. Twelve (12) copies of all reports, and engineering drawings as appropriate (draft and final), plus an additional electronic copy on a Compact Disk (CD) should be provided, using programs compatible with the programs existing on the City's computer network (e.g. Adobe Acrobat, Word, Excel, Access, etc.). Throughout the report preparation process, Consultant shall meet with staff and/or outside parties identified by staff from time to time to present progress reports and exchange information as requested by the City. D. Schedule. A draft initial report should be submitted for City staff review and comment by no later than June 6, 2003. A final report that incorporates staff comments shall be submitted by no later than July 18, 2003. E. City Council Workshops. The Consultant shall conduct an extensive (half-day) workshop with the City Council, City staff, significant stakeholders and the public at large to discuss the report and MEU alternatives. The Consultant shall provide the primary presentation at the workshop in Power Point format. In order to provide background and context to the MEU analysis, City shall provide a concurrent update on negotiations with SDG&E Port District, Duke Energy, and others, as relevant. The purpose of this workshop is to obtain City Council, stakeholder and resident/business input in order to determine whether or not to proceed with later phases of MEU analysis and development. Additional workshops may be Chula Vista Municipal Utility Formation Request for Proposal Page 3 scheduled as necessary to present the findings and answer questions regarding the wdtten reports, Presentation materials shall, be delivered to the City for potential City use at subsequent public forums. F. Additional Work The City may request additional work on terms that would be negotiated. One example of additional work contemplated is as follows: a. The Consultant shall evaluate and discuss potential joint City and San Diego Unified Port District partnerships regarding the South Bay Power Plant. The evaluation shall identify potential partnerships structures and the associated risk/benefits of such partnerships. Additional work shall not be initiated without prior written approval from the City. [END OF SCOPE] Chula Vista Municipal Utility Formation Request for Proposal Page 4 NOTE: THIS DRAFT PHASE II SCOPE OF WORK IS BEING PROVIDED FOR INFORMATIONAL PURPOSES ONLY. IT IS NOT A SOLICITATION FOR A PROPOSAL AT THIS TIME. THE ONLY CONTRACT CONTEMPLATED AT THIS TIME IS FOR PERFORMANCE OF THE PHASE I SCOPE OF WORK. Chula Vista Municiloal Energy Utilitv Analvsis SCOPE OF WORK Phase II - Focused Feasibility Study and Implementation Plan A. In General. Phase II is to prepare a Focused Feasibility Study and Implementation Plan based on the information and recommendations contained in the Phase I Preliminary Report. If a desirable initial MEU business is identified and approved bythe City for further analysis, the Focused Feasibility Study and Implementation Plan should answer the question: How does the City go about forming and implementing the recommended initial MEU business? If no desirable MEU business is identified in Phase I, the Phase II Scope of Work shall be modified to be an implementation plan for the City's remaining Energy Strategy components. B. Contents of Plan. The Focused Feasibility Study for an initial MEU business should, at a minimum: Describe and map the recommended customer base (or bases) and energy services to be provided as the initial MEU business. Describe and map the initial MEU system components, including power sources, transmission, interconnection, distribution, and related support facilities. If appropriate at this stage, obtain a preliminary system feasibility analysis from a qualified engineer (City will cover pre-approved engineer subcontractor costs.) Describe in detail the legal, regulatory, entitlement, finance, technical/engineering and transactional steps required to form and implement the proposed MEU. Include a timeline with specified milestones. Present an economic model that demonstrates whether or not the proposed initial MEU business is feasible. The economic analysis shall include, at a minimum: (a) Estimated project development costs, including ranges for materially relevant cost variables (include severance costs, if any); (b) Estimated annual operating and maintenance costs, including ranges for Chula Vista Municipal Utility Formation Request for Proposal Page 5 materially relevant cost variables. (c) Robust cash flow analyses for predevelopment, development and operational stages of the project. Use a range of projected housing development rates and rate structures. At least one rate structure shall be pegged to projected SDG&E tariffs. Estimate expenses, debt service and public goods charges. MEU operational cash flows should be presented for 30 years of operations; and (d) Gross and net revenue projections including net present values, and estimated returns on City's investment. Pro formas should include any and all necessary supporting data, references, assumptions and notations necessary and appropriate to assess the source and reliability of economic projections. The analysis should give the City a good understanding of the projected short, intermediate and long-term financial implications of implementing the initial MEU business. Quantify necessary staffing and consultant service resources throughout the process. Description should include engineering and technical advice, legal advice, public relations, financial advisor and underwriting. Specify the managing consultant's role throughout the process. Propose an MEU governance structure (or structures) appropriate to guide project development and operations. 7. Identify sources for financing the initial MEU business. Identify potential impacts on the City's electricity and natural gas franchises, City operations and tax revenues. Describe the quantitative and qualitative project benefits that will accrue to the City, City residents and businesses from the recommended initial MEU business. 10. Demonstrate how existing reliability and service standards can be maintained or exceeded. 11. Identify the costs, risks, environmental impacts and vulnerabilities of the initial MEU business, and ways to mitigate same. 12. Describe how the initial MEU business positions the City for potential expanded MEU services. Provide California examples of MEU expansion, if any. Generally describe, map out and propose a schedule for potential expansion phases. 13. Recommend an approach for soliciting additional public input including an initial list of stakeholder concerns, potential solutions and approaches to sharing information Chula Vista Municipal Utility Formation Request for Proposal Page 6 with the public and soliciting and obtaining public input regarding the initial MEU business. 14. Whether or not an initial MEU business has been identified, recommend a strategic approach to continuing to pursue (or modify) the City's current Energy Strategy and Action Plan. C. Draft and Final Reports. The report shall be prepared initially in draft form for City staff comment. Intermediate draft reports may also be provided to SDG&E for review and comment prior to the preparation of the final report. Depending upon the timing of SDG&E's review and their comments, the final report may be delayed and/or modified to incorporate their comments. Twelve (12) copies of all reports, and engineering drawings as appropriate (draft and final), plus an additional electronic copy on a Compact Disk (CD) should be provided, using programs compatible with the programs existing on the City's computer network (e.g. Adobe Acrobat, Word, Excel, Access, etc.). Throughout the report preparation process, Consultant shall meet with staff from time to time to present progress reports and exchange information as requested by the City. D. Schedule. A draft Focused Feasibility Study and Implementation Plan should be submitted for staff review and comment by no later than due date specified on City's Two Party Agreement contract. A final strategic plan should that incorporates staff comments shall be prepared and submitted by no later than due date specified on City's Two Party Agreement contract. E. City Council Workshops. The Consultant shall conduct an extensive (half-day) workshop with the City Council, City staff, significant stakeholders and the public at large to discuss the Focused Feasibility Study and Implementation Plan. The Consultant shall provide the primary presentation at the workshop in Power Point format. In order to provide background and context to the MEU analysis, City shall provide a concurrent update on negotiations with SDG&E Port District, Duke Energy and others, as relevant. As with the Phase I workshop, the purpose of this workshop is to obtain City Council, stakeholder and resident/business input in order to determine whether or not to proceed, in this case, with implementation of the initial MEU business. Additional workshops may be scheduled as necessary to present the findings and answer questions regarding the written reports. Presentation materials shall be delivered to the City for potential City use at subsequent public forums. Chuia Vista Municipal Utility Formation Request for Proposal Page 7 Attachment 3 Duncan Weinberg Genzer & Pembroke/McCarthy & Berlin and Navigant Consulting Team Proposal (Without attachments 3 to 5) MUNICIPAl, ENERGY UTILITY FEASIBILITY ANALYSIS PROPOSAl, FOR THE CITY OF CHULA VISTA Submitted Jointly by: DUNCAN, WEINBERG, GENZER & PEMBROKE, P.C. MCCARTHY & BERLIN, L.L.P. NAVIGANT CONSULTING, INCORPORATED Submitted February 7, 2003 February 6, 2003 Carla Ostafi City Manager's Office City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Re~ Municipal Energy Utility Feasibility Analysis Proposal for the City of Chula Vista Dear Ms. Ostafi: On behalf of Duncan, Weinberg, Genzer & Pembroke, PC ("DWG&P"), California Of Counsel McCarthy & Berlin LLP ("M&B") and Navigant Consulting, Inc. ("Navigant Consulting") (collectively "MEU Study Team"), I am pleased to submit our Joint Proposal to perform a municipal energy utility feasibility analysis for the City of Chnla Vista, California. The three firms which submit this proposal have worked and collaborated closely on numerous municipal and public agency energy projects for over eighteen years. Currently, the three finns are working jointly on projects for common clients, many of which are located in the State of California, and are in regular and frequent contact. Based upon our extensive experience in performing municipal utility feasibility studies and the representation of municipal utilities and public agencies, we are proposing a multi-disciplinary approach and the preparation of a draft and final report analyzing Chula Vista's options to form and implement a municipal energy utility. In accordance with the temas and conditions of the Request for Proposal, the proposal submitted herewith shall remain binding for 120 days from the date of submission. The MEU Study Team identified herein is prepared to commence work on Phase I of the feasibility analysis upon the award Of the consulting Agreement and, assuming the timely award of the consulting agreement, will commit to complete Phase I by submitting a draft initial report by June 6, 2003 and a final report, incorporating City Staffs comments, by no later than July 18, 2003. In the event that you have any questions respecting this Proposal, please contact the undersigned. Sincerely, Attachments Wallace L. Duncan TABLE OF CONTENTS Page EXECUTIVE SUMMARY ...................................................................1 STATEMENT OF QUALIFICATIONS .................................................... 2 1. MEU Study Team Contacts ......................................................... 3 2. Locations ............................................................................... 3 3. Company Management/Onwership/Financial Status ............................. 4 4. Project Management/Key Personnel ................................................ 4 a. Project Management ......................................................... 4 b. Key Personnel ................................................................. 5 5. References .............................................................................. 6 6. Additional Information ................................................................ 6 SUBCONTRACTOR INFORMATION .................................................... 6 TECHNICAL PROPOSAL - SCOPE OF WORK ........................................ 7 TASK No. 1 Consider and incorporate, if appropriate, previous City actions and analysis contained in the City's adopted Energy Strategy and Action Plan ............................................................... 7 TASK No. 2 Identify the characteristics of Chula Vista that present opportunities or challenges to MEU implementation .................... 8 TASK No. 3 Describe the various forms of MEUs; give California examples where possible. Identify the risks/benefits, pros/cons of each .........9 TASK No. 4 Describe, step-by-step, the MEU formation and implementation process. Include a timeline. Include descriptions of any required approvals from the CPUC, FERC or other governmental agencies... 9 TASK No. 5 Estimate and describe the financial and human capital resources required for each stage of municipalization .................. 10 TASK No. 6 Estimate and describe the costs, risks, potential environmental impacts and walnerabilities of MEU's formation and implementation. How can costs be managed and risks mitigated? ...................................................................... 10 Preliminary Cost-Benefit Analyses: ............................... 11 1. Analysis ofChulaVistaLoads ............................ 11 2. Power Supply Costs ........................................ 11 3. Distribution Infrastructure Acquisition Costs ........... 12 4. Operation and Maintenance Costs ........................12 TASK No. 7 Describe the current legal, regulatory, political, and economic framework in which an MEU would operate, the challenges and opportunities presented thereby, and approaches to overcoming and taking advantage of such challenges and opportunities ............. 12 TASK No. 8 Describe the potential benefits of MEU operation in Chula Vista: In what specific ways could a Chula Vista MEU deliver benefits not currently provided by SDG&E? ........................................ 13 TASK No. 9 Provide case studies which illustrate both the potential benefits and pitfalls of an MEU ....................................................... 14 TASK No. 10 Identify alternatives/lower risk approaches to MEU implementation including, but not limited to, aggregation (e.g. types of partnerships with SDG&E or regional partnerships). Identify the risks/benefits, pros/cons of each. In completing this Section consider alternatives contained in the City's existing Energy Strategy and Action Plan ................................. 14 TASK No. 11 If justified by the analysis, recommend an initial MEU business that would implement City's energy objectives. Provide a proposed outline of a Focused Feasibility Study and Implementation Plan for the recommended MEU. (Refer to City staff's draft outline for a Phase II analysis, attached) .......... 16 Draft and Final Reports ........................................................................ 17 Workshop ........................................................................................ 17 ii F. G. H. COST PROPOSAL ............................................................................ 17 PROJECT SCHEDULE ....................................................................... 18 CONTRACT EXCEPTIONS ..................................................................19 COMPANY LITERATURE ...................................................................19 Attachment 1 - Statement of Qualifications, Similar Projects Resumes of Key Personnel for Duncan, Weinberg, Genzer & Pembroke and McCarthy & Berlin Attachment 2 - Statement of Qualifications, Similar Projects, Resumes of Key Personnel for Navigant Consulting, Inc. Attachment 3 - DWG&P 2001 Financial Statement Attachment 4 - Professional References Attachment 5 - Cost Proposal iii A. EXECUTIVE SUMMARY The MEU Study Team jointly proposes to perform Phase I of the Municipal Energy Utility Feasibility Analysis and, using a multi-disciplinary methodology, prepare a Final Report which sets forth the Findings and Recommendations of the MEU Study Team. The analysis will address the feasibility and methodology for establishing a Municipal Energy Utility ("MEIZ') which will provide both electricity and natural gas supply services to City facilities as well as residential, industrial and commercial customers within the City. The MEU Study Team recognizes and appreciates that the City has akeady adopted an Energy Strategy and Action Plan which provided the underlying parameters of the follow-on study contemplated in the current Request for Proposal ("RFP"). The MEU Study Team will commence the feasibility analysis with a detailed review of the work already accomplished and incorporated in the Energy Strategy and Action Plan. Every effort will be made to avoid duplicating work already accomplished on behalf of the City. Rather, the MEU Study Team will consider each alternative and finding set forth in the Energy Strategy and Action Plan, perform further study and analysis necessary to test the validity or soundness of such alternative and finding, and make recommendations, based on further study and data, to allow the City to make an informed decision respecting the implementation of Phase II of the Project and, ultimately, the formation and operation of an MEU. The MEU Study Team further recognizes that an underlying premise of the current RFP is that a relocated and repowered South Bay Power Plant may enable the City to buy electricity at wholesale and distribute it to consumers within the City at retail and that this factor should be taken into consideration in developing the feasibility analysis. Given these considerations, the MEU Study Team has set forth a series of project tasks to be completed either jointly or separately by the three firms in accordance with the Scope of Work outlined in the RFP. In Section D of this joint proposal, the MEU Study Team has described the task to be performed, the methodology to be adopted and applied,' and has assigned responsibility for the completion of each task to a member of the MEU Study Team. Once each task is completed, the MEU Study Team will collaborate to consider the results of specific tasks, analyze the data collected, and arrive at joint findings and recommendations. Finally, when all identified tasks have been performed and data collection has been completed, the MEU Study Team will jointly prepare the draft and final reports contemplated in the RFP. Assuming that the award of the consulting Agreement is timely made by the City (i.e., on or about March 19, 2003), the MEU Study Team is committed to complete the feasibility analysis and submit a dratl initial report for City Staff review and comment by no later than June 6, 2003 and a final report, which incorporates staff comments, by no later than July 18, 2003 as prescribed in Attachment 1, Section D of the RFP. Consistent with the RFP and with further information and directions from representatives of the City, this joint proposal, including the cost estimates and scope of work, is limited to Phase I of the feasibility analysis. The MEU Study Team, however, has fully reviewed the Scope of Work for Phase II (Focused Feasibility Study and Implementation Plan) and can represent to the City that the members of the MEU Study Team are fully qualified to perform the Scope of Work identified in Phase II of the RFP should the City elect to proceed with Phase II and engage the members of the MEU Study Team to assist the City in this endeavor. B. STATEMENT OF QUALIFICATIONS The general Statement of Qualifications of DWG&P and M&B is set forth in Attachment No. 1 hereto. The general Statement of Qualifications of Navigant Consulting is set forth in Attachment No. 2, hereto. DWG&P will manage the legal analyses performed for the City and preparation of the draft and final reports. DWG&P, in collaboration with M&B, will identify and analyze the alternatives open to the City under both the Federal laws and regulation applicable to municipal energy utility formation and operation and the laws and regulations of the State of California, including the exercise of the power of eminent domain under the laws of the State of California. DWG&P, in collaboration with M&B and Navigant Consulting, shall analyze the potential costs of acquiring, by negotiation or condemnation, the distribution facilities and other facilities of San Diego Gas & Electric Company (/~SDG&E@), and the potential liability of the City to pay the stranded costs of SDG&E under both Federal and State laws and regulations. DWG&P/M&B will also analyze and address any applicable legal requirements, regulatory approvals, and applicable laws and regulations governing the acquisition and delivery of electric and gas supplies to the MEU. Navigant Consulting will manage the engineering and technical analysis and will provide an inventory and preliminary appraisal 6fthe electric and gas utility facilities now owned and operated by SDG&E in the City and will identify those facilities which should be necessary for the City to operate a Municipal Energy Utility (/uMEU@) under each of the alternatives deemed to be feasible and beneficial by the MEU Study Team. Navigant Consulting shall also provide an analysis of the system modifications which will be necessary to sever the MEU gas and electric distribution systems from SDG&E and the contractual arrangements (including borderline agreements, interconnection agreements and power and gas supply agreements) necessary for the operation of the MEU. Navigant Consulting will also develop and provide an analysis of all available and economically feasible power and gas supply altematives open to the MEU, including purchased power, the availability of Federal preference power, MEU-owned generation, and available gas and pipeline resources, together with an estimate of the cost of power and gas supply and a comparison of such costs with the current cost of power and energy and gas presently provided by SDG&E. locations: MEU Study Team Contacts The primary contact for DWG&P and M&B will be: Wallace L. Duncan Duncan, Weinberg, Genzer & Pembroke Suite 800 1615 M Street, NW Washington, DC 20036 Telephone (202) 467-6370 Facsimile (202) 46-6379 E-mail: WLD~dwgp.com The primary contact for Navigant Consulting will be: Thomas Crooks Navigant Consulting, Inc. 3100 Zinfandel Drive Suite 600 Sacramento, CA 95670 Telephone (916) 631-3200 Facsimile (916) 852~1073 E-mail tcrooks(~navigantconsulting.com Locations The MEU Study Team proposes to perform services for the City at the following Duncan, Weinberg, Genzer & Pembroke Suite 800 1615 M Street, NW Washington, DC 20036 Telephone (202) 467-6370 McCarthy & Berlin, L.L.P. Suite 140 2005 Hamilton Avenue San Jose, CA 95125 Telephone (408) 558-0950 Navigant Consulting, Inc. 3100 Zinfandel Drive, Suite 600 Sacramento, CA 95670 Telephone (916) 631-3200 3. Company Management/Ownership/Financial Status DWG&P DWG&P is a Professional Corporation organ]zed and licensed under the laws of the District of Columbia since 1977. From 1971 to 1976, DWG&P was operated as a law partnership known as "Duncan & Brown." The Finn is currently qualified to practice law in the State of California as a legal partnership. DWG&P is in the process of qualifying to practice in the State of California as a professional corporation. The Firm was formed and commenced business as a law partnership in 1971. A copy of DWG&P's most recent financial statement (2001) is set forth in Attachment No. 3. DWG&P does not prepare and publish an Annual Report. M&B M&B is a California limited liability partnership which was formed and commenced operation on January 1, 2002. Prior to that date, the Finn was operated as a sole proprietorship as Law Office of Barry F. McCarthy (1996 to December 31, 2001). Prior to establishing the L~aw Offices of Barry F. McCarthy, Mr. McCarthy was a principal and shareholder in DWG&P (1986 - 1995). Mr. McCarthy and M&B have been Of Counsel to DWG&P since 1996 and maintain offices for DWG&P and M&B in San Jose, California. M&B does not have an audited financial statement and does not prepare and publish an Annual Report. Navigant Consulting Navigant Consulting is a publicly traded consulting finn listed on the New York Stock Exchange (NYSE Symbol NCI). Navigant Consulting has over 1,200 professional consultants in diverse practice areas. Navigant Consulting has grown rapidly through multiple new hires and acquisitions of other consulting firms during the last five years. Navigant Consulting's most recent Security and Exchange Commission (SEC) Form 10-K, which is for the year 2001, as well as Navigant Consulting's SEC Form 10-Q's for the previous three quarters (calendar year 2002), disclose all audited financial statements. Due to the size of these documents they have not been included in this proposal. The SEC forms can be obtained online at www.edgar-online.com. Alternatively, Navigant Consulting would be pleased to provide the City with copies of these filings upon request. 4. Project Management/Key Personnel (a) Project Management The overall Project Manager for the MEU Study Teem will be: Wallace L. Duncan Duncan, Weinberg, Genzer & Pembroke 4 Mr. Duncan will provide overall supervision of the project, coordination with the other consultant firms and liaison with representatives of the City. Mr. Duncan will also manage and direct all work performed directly by DWG&P. Mr. Duncan will devote approximately 15% of his time during Phase I of the project in the event that this proposal is accepted. As project manager, Mr. Duncan will act as the liaison with the representatives of the other members of the MEU Study Team to ensure that the Tasks proposed in Section D are performed and completed on schedule. In Section F, the MEU Study Team has set forth a projected Project Schedule commencing on March 19, 2003 and ending on July 18, 2003, with the submission of the final report. Using the Project Schedule, Mr. Duncan will, at the end of each designated study period, consult with the responsible member of the MEU Study Team, obtain copies of the completed Task and supporting data and track any delays or deficiencies in the performance of Tasks which are due to be completed during that study period. Mr. Duncan will also serve as liaison with designated representatives of the City Staffto advise on the project schedules, completion of Tasks, or to identify any problems which may arise in meeting the projected schedule. To the extent necessary, Mr. Dunchn will meet and confer with representatives of City Staff to discuss adherence to the project schedule or to address any concerns or questions raised by the City Staff during the course of the Feasibility Study. (b) Key Personnel DWG&P Personnel The key personnel proposed by DWG&P are as follows: Wallace L. Duncan Michael Postar Lisa S. Gast Derek A. Dyson Tamir Ben-Yoseph Daisy M. Matthews Project Manager/Sr. Attorney Sr. Attomey Sr. Attorney Jr. Attorney Jr. Attorney Sr. Paralegal M&B Personnel Barry F. McCarthy will be responsible for managing and coordinating all work performed by M&B and coordinating the work of M&B with DWG&P and Navigant Consulting. The key personnel proposed by M&B are as follows: Barry F. McCarthy C. Susie Berlin Sr. Attorney Sr. Attorney Navigant Consulting Personnel The key personnel proposed by Navigant Consulting are as follows: Bryan Gfiess Thomas Crooks Patrick Mealoy Catherine M. Elder John Hunter Paul Maxwell Max Walenciak Larry Reigle Shawn Matchim John Foreman Managing Director Principal Principal Principal Senior Engagement Manager Director Principal Senior Engagement Manager Resource Economist/Policy Analyst Director Resumes of all key personnel for DWG&P, M&B and Navigant Consulting are set forth in Attachment Nos. 1-2, appended hereto. 5. References The references, including entity, personal contact addresses and telephone numbers for DWG&P, M&B and Navigant Consulting are set forth in Attachment No. 4, appended hereto. The scope of services provided to each reference is set forth in Attachments 1 and 2. 6. Additional Information DWG&P, M&B and Navigant Consulting have worked together as a team in their joint representation of numerous utility clients in the State of California and elsewhere since 1985. Currently, the three firms are collaborating on consulting projects, litigation and other matters for the Transmission Agency of Northern California, the City of Palo Alto, Silicon Valley Power (City of Santa Clara), M-S-R Public Power Agency, and The Metropolitan Water District of Southern California. The three firms are in regular and fi~equent contact on these matters. C. SUBCONTRACTOR INFORMATION The MEU Study Team has submitted this proposal jointly and does not anticipate the use of any subcontractors to perform elements of the feasibility analysis. Rather, as set forth in the Technical Proposal and Scope of Work, the MEU Study Team has divided the tasks to be performed in accordance with their respective qualifications. Each firm will complete and be responsible for the assigned task and will coordinate the development of the resulting findings and conclusions with the other members of the MEU Study Team for inclusion in the draft and final reports to the City. 6 D. TECHNICAL PROPOSAL - SCOPE OF WORK In this Section of the Joint Proposal, the IVlEU Study Team has presented a description and work plan for the scope of work identified and set forth in Attachment I (Scope of Work - Phase I) of the RFP.- ~/ In the interest of efficiency and maximizing the experience and background of each member of the MEU Study Team, we have assigned responsibility for each of the Tasks set forth in the Scope of Work, demonstrated an overall understanding of the critical path issues needed to assure timely implementation, provided a description of the methodology to be employed in completing each task, listed, where appropriate, the deliverables that will be provided for each Task, and identified key personnel involved in each component of the feasibility analysis. In accordance with the requirements of Section 5.1.5 of the RFP, the MEU Study Team has assigned key personnel of each member of the MEU Study Team to work on specific Tasks enumerated and described in Section D of this proposal. These assignments, together with an allocation of time for all project personnel is set forth in the Cost Proposal analysis included in Section E of this proposal. TASK No. 1 Consider and incorporate, if appropriate, previous Ci~. actions and analysis contained in the Ci .ty's adopted Energy Strate~y and Action Plan As stated in the Executive Summary, the MEU Study Team will commence work on the feasibility analysis by conducting a comprehensive joint review of the City's adopted Energy Strategy and Action Plan to determine the extent to which data and information previously developed and considered by the City is useful and relevant to the completion of Phase I of the feasibility analysis. The MEU Study Team will consider and incorporate, where appropriate, any information, data and analysis set forth in the Energy Strategy and Action Plan and will make a concerted effort to avoid the duplication of work already completed and available as a starting point for the feasibility analysis. To the extent necessary, the MEU Study Team will endeavor to verify and update any information set forth in the Energy Strategy and Action Plan. Prepatory to developing this proposal, the MEU Study Team has conducted a preliminary review of the City's Energy Strategy and Action Plan, developed an outline of the principal components of the Plan and have given due consideration to the principle alternatives and recommendations set forth therein. _l/ In preparing this proposal, the MEU Study Team notes that there is considerable overlap in the numbered paragraphs comprising the Scope of Work in Attachment 1 to the RFP. To the extent possible, the MEU Study Team has attempted to take any such duplication or overlap into consideration in addressing and describing each of the numbered Tasks which are set forth in Section D of this proposal. The MEU Study Team will endeavor to avoid any duplication of effort or costs during the course of the proposed feasibility study. 7 TASK No. 2 Ident~y the characteristics of Chula Vista that present opportunities or challenges to MEU implementation Using the data and information set forth in the Energy Strategy and Action Plan and information and data otherwise provided by the City, the MEU Study Team will jointly identify and assess the characteristics of Chula Vista which will present both opportunities and challenges to MEU implementation. Among other factors, the MEU Study Team will examine the following characteristics of Chula Vista which may bear upon or drive the selection of alternative implementation plans: · Size and composition of electfi~ and gas utility requirements and composition of various classes of customers. Location and availability of alternative electric transmission and gas pipeline facilities necessary to provide reliable electric and gas resources to Chula Vista and its inhabitants. · Location, availability and estimate of the price of alternative electric and gas resources from suppliers in Southern Caiifomia and the Pacific Southwest. · Nature and extent of existing contracts or franchise rights of San Diego Gas & Electric Company within Chula Vista. Configuration and condition of existing electric and gas utility facilities of San Diego Gas & Electric Company which may be acquired by Chula Vista either by negotiation or condemnation to establish the MEU system. Analysis of the existing San Diego Gas & Electric Company system presently serving Chula Vista and environs to determine the extent to which that system will have to be restructured and re-engineered to permit San Diego Gas & Electric Company to continue to provide adequate and reliable service to its remaining customers in the service territory. Analysis of the comparative costs, benefits or negative impacts which may result from the construction of an entirely new utility system and infrastructure as an alternative to acquiring the existing facilities which now comprise the SDG&E electric and gas distribution system within the City. This analysis shall include an assessment of the environmental impacts which may be inherent in the duplication or overbuild of such facilities. Analysis of the principle state and Federal laws applicable to the formation and operation of municipal energy utilities to identify any legal limitations or restrictions which may impede, delay or affect the critical path in the formation and implementation of an MEU. TASK No. 3 Describe the various forms of MEUs; give California examples where possible. Identi .fy the risks/benefits, pros/cons ofeach Ultimately, the specific utility structure adopted by the City must be tailored to fit the City's objectives. Utility structures required for owning and operating electric and gas distribution systems vary greatly from those support'mg electricity and gas aggregation and/or electric generation resource development. The MEU Study Team will describe the nature of the various structures, the strengths and weaknesses of each, and a review of recent public power endeavors in California and surround'mg states. Following an analysis of the regulatory, legal and economic issues associated with each energy utility option, the MEU Study Team will return to the utility structure choice and present its recommendations. Structures for consideration will include: Municipal Energy Utility (city structure versus utility district structure) Green Fields Development Community Aggregation Electricity - Community Choice Aggregation Natural Gas - Core and Non-Core Customer Aggregation Creation of a Joint Powers Agency with other local governments TASK No. 4 Describe, step-by-step, the MEU formation and implementation process. Include a timeline. Include descriptions of any required approvals from the CPUC, FERC or other governmental a~encies The MEU Study Team will collaborate on the task of identifying and analyzing the applicable Federal, state and local laws relating to the formation and operation of municipal energy utilities. As part of this task, the MEU Study Team will identify the alternatives open to the City for the governance and management structure of an MEU, a description and analysis of the formal requirements (i.e., resolutions, referenda, notices and hearings) required in forming the governance and management of a City-owned MEU. To the extent that they are governed by state or local laws and regulations, timelines and notice requirements will be provided in the step-by-step description of the formation and implementation process. To the extent that such timelines are not established by law or regulation, the MEU Study Team will provide an estimate of the time required to accomplish thc objective or task. In performing this task, the MEU Study Team will give consideration to the existing structure and organization under which the City currently provides street lighting and traffic signal lights. Although municipal energy utilities are largely exempt from direct regulation by either the California Public Utilities Commission ("CPUC") or the Federal Energy Regulatory Commission ("FERC"), such utilities are required to interface and transact business with regulated utilities (e.g., San Diego Gas & Electric Company, Southern California Edison, and the California Independent System Operator Co~poration), and, in this context, will become involved in the regulatory process before both the CPUC and the FERC. DWG&P/M&B will identify and describe those components of MEU formation and operation in which regulatory approvals may be necessary or required, e.g., the sale or purchase of regulated utility properties, the interconnection of gas or electric utility facilities with those owned and operated by non-exempt utilities, transmission or gas pipeline wheeling or delivery agreements, borderline agreements with regulated utilities, siting and location of new generating facilities, or the operation and upgrade of existing generation facilities such as the South Bay Power Plant. DWG&P/IVI&B will also examine and describe the requirements of state and local laws, including the California Eminent Domain Law, applicable to the acquisition, by either negotiation or condenmation, of the existing electric and gas distribution systems of SDG&E. As part of this analysis, DWG&P/M&B will describe both the requirements for initiating negotiations with SDG&E, making a good faith offer to acquire utility facilities and other prerequisites to initiating condemnation procedures. To the extent that such matters are governed by state or local laws, DWG&P/M&B will provide specific timelines for each stage of the acquisition process. DWG&P will also identify and discuss the legal standards applicable in utility condenmation cases and the methods that are commonly used for valuing utility property in condemnation proceedings. To the extent that the City proposes or undertakes to build, operate or upgrade any utility facilities (e.g., the South Bay Power Plant) for which approvals or certificates of convenience and necessity are required or which fall under state or Federal enviromnemal protection regulations, the MEU Study Team will describe such requirements and procedures together with applicable standards. TASK No. 5 Estimate and describe the financial and human capital resources required for each stare of municipalization The MEU Study Team will provide the estimated cost and professional capabilities required for each phase of implementing the prospective MEU (project costs are addressed in more detail under Task No. 6 below). The MEU Study Team will advise the City what legal, technical, and financial skill sets are required at each phase of planning and implementation process, as well as the estimated hours of labor by skill category along with representative budgetary estimates. The basis for MEU operational management and staff will be benchmarking like- sized utilities (primarily in California and/or the Western United States) providing similar utility services. TASK No. 6 Estimate and describe the costs, risks, potential environmental impacts and vulnerabilities of MEU's formation and implementation. How can costs be managed and risks mitigated? The MEU Study Team will address each of the issues described under Task 6 in logical order where the operational feasibility of the given MEU structure will be subject to a preliminary cost-benefit pre-screening. The preliminary cost-benefit assessment is described in more detail below. Pending a positive feasibility screening, the team will identify risk, risk mitigation, and attendant strategic vulnerabilities for each MEU structure option. Where appropriate, as in the case of renewable energy projects, potential environmental impacts will be summarized. Environmental impact reports typical for conventional generation project siting requirements would be addressed in the Phase-II o Focused Feasibility Study and Implementation Plan. Preliminary. Cost-Benefit Analyses: The cost-benefits and feasibility of implementing selected utility structure options will be determined by incorporating prospective loads, load shapes, existing (SDG&E) rates, energy resource supply portfolios, capital costs, debt service, operation and maintenance cost projections, exit fees, in-lieu tax payments and much more in Navigant Consulting's proprietary Utility Feasibility and Cost of Service model CUFCOS). The UFCOS Model output reports will include cost-of-service requirements, revenue projections and the bases for preliminary rate design. The UFCOS platform enables iterative sensitivity analyses of variations in forward energy prices, fuel costs, asset valuation altematives and myriad restructuring scenarios. A more detailed explanation of feasibility modeling inputs is set forth below: 1. Analysis of Chula Vista Loads The City provided information on citywide energy consumption in its RFP. To assemble an optimum energy resource portfolio, and associated projected costs for inclusion in the UFCOS model, Navigant Consulting will develop electricity and natural gas, hourly and seasonal time-of-use load shapes and load duration curves, respectively. After establishing the required load information, Navigant Consulting will produce a twenty-year demand and energy forecast. This forecast will be used as a basis for assessing power supply requirements. 2. Power Supply Costs Navigant Consulting's electric power and natural gas supply cost assumptions will be based on studies including: A forward pricing analysis of the wholesale electric power market with sensitivity to fuel prices, regional hydro flows, load growth, generation resource retirements and additions, and transmission congestion; An analysis of the existing power contracts market to evaluate current and projected cost for standard commercially traded power contracts (base- load, peak-period and load-following); Evaluation of the City's potential participation in generation projects, including (but not solely limited to) the relocation and repowering the South Bay Power Plant and other partnership development options with other utilities and independent power producers, and; Analysis of renewable energy sources and demand side programs as part of the power supply portfolio. 3. Distribution Infrastructure Acquisition Costs Navigant Consulting will perform a preliminary analysis of the condition and value of the electric and natural gas distribution systems that may be acquired by the City. This will include examining different cost models for acquisition of assets, including redundant construction costs, replacement costs less depreciation, multiple of book, break-even value, and potential system improvements. 4. Operation and Maintenance Costs The MEU Study Team will provide an analysis of utility operation issues the City would need to consider, including a discussion of the benefits of performing the following activities internally or outsourcing as deemed appropriate: Human Resources (discussed under Task 5, above) Management Staff Equipment Capital improvements Billing/metering/etc. Severance Costs Operations and maintenance Startup Costs Operation and maintenance expense estimates for the City will be consistent with cost-of-service studies for like-sized utilities for distribution, customer services (includes customer accounting, customer service and sales) and A&G, all such expenses will be allocated on a per customer basis and incorporated in UFCOS. TASK No. 7 Describe the current legal, regulatory., political, and economic framework in which an MEU would operate, the challenges and opportunities presented thereby, and approaches to overcoming and taking advantage of such challenges and opportunities As discussed in the text of the discussion of Task No. 4 above, municipal energy utilities operated in the State of California are, for the most part, exempt from regulation by either the CPUC or the FERC. However, as previously discussed, the interface of an MEU with regulated utilities (both electric and gas) will subject the operations and transactions of an MEU to some regulatory scrutiny at both the state and Federal level. The MEU Study Team will provide an overview of the legal, regulatory, political and economic framework in which an MEU would operate. It is particularly critical that the City understand the implications of the electric industry restructuring process, which has substantially modified the legal, regulatory, political and economic framework of the electric industry in the State of California since 1998. In this regard, the California investor-owned utilities (including SDG&E) have, in accordance with California State Law (Assembly Bill 1890) turned over their high voltage transmission facilities comprising the California Transmission Grid to the California Independent System Operator (CAISO). The CAISO is now the Control Area Operator and the operator of the California transmission grid and, while there may be a number of alternatives open to an MEU for obtaining power resources, a new MEU in Chula Vista will almost inevitably be faced with the requirement for transacting business with the CAISO which, like the investor-owned utilities in California, is regulated by the FERC. There are distinct advantages and disadvantages to becoming a "Participating Transmission Owner" under the CAISO Tariff, and there are a myriad of potential costs and charges that may be imposed on the MEU in transactions involving the use of the CAISO controlled transmission grid. DWG&P/M&B will describe and summarize the implications of transacting business with the CAISO under the current utility structure in California. As part of this analysis, the MEU Study Team will also analyze and discuss the economic advantages and disadvantages of MEU ownership and operation and will identify and discuss both political and regulatory proposals which are currently under review to further reform the regulatory and operational structures of the electric and natural gas industries in California and on a regional and national basis. TASK No. 8 Describe the potential benefits of MEU operation in Chula Vista: In what specific ways could a Chula Vista MEU deliver benefits not currently provided by SDG&E? With respect to each alternative MEU model or altemative deemed by the MEU Study Team to be feasible and worthy of further consideration (including further analysis and consideration in the Focused Feasibility Study and Implementation Plan contemplated in Phase II of the Project), the MEU Study Team will identify and discuss all potential benefits of MEU operation in Chula Vista, together with any downside risks or potential detriments which might attend the adoption and implementation of such alternative. As part of this Task, the MEU Study Team will address, in the context of discussing each alternative open to the City, the specific ways in which a Chula Vista MEU might deliver benefits which are not currently provided by the utility operations of SDG&E. In performing this Task and making the foregoing comparison of benefits, the Navigant Consulting UFCOS model will be particularly useful and adaptable to the Task. The application of the UFCOS model and the interpretation by the MEU Study Team of modeled results will highlight and support a comparison of projected MEU charges and customer benefits with those currently provided by SDG&E. In this scenario, the City may select those energy alternatives, which economically optimize the MEU plan ultimately implemented. Based on the application of the UFCOS model, the findings and conclusions of the MEU Study Team will be fully and easily identified and presented in a detailed, utility-specific operating pro forma accompanied by a concise narrative analysis. A comparative analysis of projected MEU operations as opposed to the continuation of service fi.om SDG&E will be provided. As required by the RFP, the MEU Study Team will identify both the pros and cons of the formation and operation of an MEU. The formation and operation of an MEU will, for example, result in the removal of SDG&E's utility facilities from the tax rolls of the City of Chula Vista, San Diego County, and possibly other taxing entities, resulting in the loss of tax revenues now enjoyed by the City. The MEU Study Team will address the issue of lost tax revenues and include both a discussion of the net benefits flowing to the City to offset lost tax revenue and methods for alleviating or minimizing such adverse effects of MEU ownership of utility facilities (e.g., the possibility of making in-lieu payments to the City and other taxing entities to offset the loss of tax revenues). In addition to positive business case pro formas demonstrating the financial feasibility in terms of the potential to provide rate relief for the City and its citizens, the MEU Study Team will summarize key strategic strengths and weaknesses for the City to consider. Issues such as how the City can leverage existing City services, increase operational efficiencies and lower existing costs, provide future price stability for the provision of electricity and natural gas, and exert additional local control of energy decisions impacting Chula Vista and its constituents. TASK No. 9 Provide case studies which illustrate both the potential benefits and pitfalls of an MEU The MEU Study Team will compile a series of case studies of MEU projects, in California and in other states, which will focus on both the potential benefits and the pitfalls of forming and operating an MEU. A partial listing of projects in which members of the MEU Study Team have been directly involved is set forth in Attachments 1 and 2. The MEU Study Team will provide a more extensive description and analysis of those projects and will describe and analyze other projects which may provide insight and perspective on both the pros and cons of forming and operating an MEU in the current environment of the California energy market. TASK No. 10 Identify alternatives/lower risk approaches to MEU implementation including, but not limited to, aggregation (e.g. types of partnerships with SDG&E or regional partnerships). Identify the risks/benefits, pros/cons of each. In completing this Section consider alternatives contained in the City's existing Ener~,y Strategy and Action Plan As discussed under Task No. 1 above, the MEU Study Team will commence its analysis of the alternatives open to the City by reviewing and analyzing the City's Existing Energy Strategy and Action Plan. To the extent that the MEU Study Team regards any of the alternatives set forth in the Energy Strategy and Action Plan to be feasible and beneficial, they will provide a more thorough analysis of such alternatives and provide a discussion of both the advantages and disadvantages of such alternatives. Among the alternatives set forth in the Energy Strategy and Action Plan is the potential for the City to limit the role of the MEU to that of an aggregator rather than establishing a fully operational municipal electric and gas distribution system. In this regard, the MEU Study Team is fully familiar with the terms and conditions of the recently enacted Assembly Bill No. AB 117 ("AB 117") which permits municipalities in California to adopt and implement a Community Choice Aggregation program. As part of the study, the MEU Study Team will describe and explain the terms and conditions of AB 117 and, to the extent they are available, provide a listing and description of Community Choice Aggregation programs which are already up and nmning in the State of California. An examination of the potential benefits of community aggregation cost-benefits can be provided as one of the scenarios performed under the UFCOS modeling effort. As part of this Task, the MEU Study Team will also identify and describe the oppommities open to an MEU under California law to form or participate in joint action projects and organizations with other MEU's. In this regard, existing MEU's in California have formed and are operating several joint action agencies which allow them to participate, in concert with other established MEUs, in generation and transmission projects to minimize expense, to increase bargaining strength, and to take advantage of the economies of scale. The following joint action agencies are currently successfully operating in the State of California to provide their respective members with energy alternatives which would not be available or feasible on a system by system basis: Northern California Power Agency ("NCPA") A joint action agency consisting of 14 municipal electric systems and 8 associate members in Northern California. NCPA provides both generation and transmission resources to its members and serves as a vehicle for jointly contracting for power and energy resources throughout the region with the Federal Government and with private suppliers. Transmission Agency of Northem California ("TANC") A joint action agency consisting of 14 municipal electric systems and a rural electric cooperative located principally in Northern California, but extending as far south as Lompoc, California. TANC built, financed and owns approximately 79% of the California-Oregon Transmission Project ("COTP"), a high voltage (500kv) transmission line that extends some 345 miles from Central California to the California-Oregon border. TANC also has contractual rights for 300 MW of Firm Transmission service on the transmission system of Pacific Gas & Electric Company ("PG&E") which is now under the operational control of the California ISO. TANC provides transmission service to its Members to allow them to access economical energy resources in the Pacific Northwest and throughout the State of California. M-S-R Public Power Agency ("M-S-R") A joint action agency consisting of the Cities of Redding and Santa Clara (Silicon Valley Power) and Modesto Irrigation District. M-S-R, through contracts with Southern California Edison Company and other utilities, provides transmission service to its Members to allow them to access energy resources, including the delivery of power fi.om the San Juan Generating Station in the State of New Mexico, which is owned, in part, by the Members of M-S-R. Southern California Public Power Association ("SCPPA") A joint action agency consisting of some 10 municipal electric systems located in Southern California, including the Los Angeles Department of Water and Power, the largest municipal utility in the United States. SCPPA provides both generation and transmission resources for its members through both the ownership of facilities and under contracts with suppliers. SCPPA was created by its members to finance, construct and own electric generation and transmission facilities on their behalf. SCPPA financed, acquired and owns interests in the Palo Verde Nuclear Generation Station, the San Juan Generating Station, the Southern Transmission Project and the Mead-Adelanto and Mead-Phoenix Projects. It is significant that the members of the MEU Study Team have performed extensive legal, engineering and consulting services to those joint action agencies identified above and to their members and are currently retained by TANC, M-S-R, and by many of the individual members of each of the joint action agencies identified above. Members of the MEU Study Team have actively participated in the development of these agencies and agency projects over the past eighteen years and will draw on that experience in analyzing similar opportunities open to Chula Vista in the event that the City elects to form and operate an MEU. TASK No. 11 If justified by the analysis, recommend an initial MEU business that would implement Ci .ty's energy objectives. Provide a proposed outline of a Focused Feasibility Study and Implementation Plan for the recommended MEU. (Refer to City staff's draft outline for a Phase Il analysis, attached) Once the MEU Study Team has identified those energy supply alternatives which appear to be both feasible and beneficial to the City and in harmony with the objectives set forth in the City's existing Energy Strategy and Action Plan, the MEU Study team will provide a comprehensive outline and description of the components which should be addressed and included in a Focused Feasibility Study and Implementation Plan. The outline for the Focused Feasibility Study and Implementation Plan will allow the City Staff to establish the parameters and objectives of Phase II of the MEU Project should the City elect to go forward with Phase II. The MEU Study Team has reviewed the City Staff's draft outline for a Phase II analysis in preparing this proposal. Given the contents and objectives of the Phase II analysis, the MEU Study Team will, during the development and preparation of the Phase I draft and final reports, attempt to gather, analyze, and categorize data and materials which will be necessary or useful in proceeding with Phase II of the MEU project. In most respects, the outline of the Focused Feasibility and Implementation Plan calls for the development and analysis of the same type of data and information as that required in the Phase I analysis, but with focus on those alternative energy development programs which appear to be most beneficial and feasible. In performing the Phase I analysis, the MEU Study Team would make a conscious effort to develop, include and reference data and information which can readily be revisited, updated and incorporated in the Phase II Project without unnecessary duplication or additional expense and reflecting savings to the City in the performance of the Focused Feasibility Study and Implementation Plan in Phase II. Draft and Final Reports The MEU Study Team will prepare a draft report that addresses all of the issues and options discussed above. The draft report will include a discussion of thc prOs and cons of the alternatives available to the Cities as well as opportunities and impediments the Cities may face under the various alternatives. This report will be shared with the City Staff for review and the MEU Study Team will incorporate the City Staff's comments and finalize the report. The final report will be compiled and presented to the City no later than July 18, 2003. Workshop The MEU Study Team will conduct a half-day workshop/strategy session with the City to discuss the findings in the report. In addition, this workshop will provide an opportunity to discuss the merits of the various alternatives and options for the City to consider. This workshop will also provide opportunities to explore the potential next steps (if any) that are appropriate for the City to undertake. E. COST PROPOSAL In accordance with Section 5.1.6 of the RFP, the MEU Study Team has developed the Cost Proposal set forth in Attachment 5, appended hereto. By way of explanation, the Cost Proposal was developed on the assumption that the MEU Study Team would perform each of the Tasks enumerated in Attachment 1 to the Scope of Work in the RFP and in Section D of this proposal. To the extent that the City elects to forego one or more of the enumerated Tasks, adds additional Tasks, or enlarges the Scope of Work, tl:te proposed budget must be adjusted accordingly. The combined budget of the MEU Study Team shows the allocation of personnel to each Task, the applicable billing rates for personnel, and the total fees projected for all members of the MEU Study Team. The budget also includes a projection of out-of-pocket expenses necessary to complete Phase I of the MEU project. In summary, the MEU Study Team proposes to perform the Phase I feasibility analysis and prepare and submit the draft and final reports for a Guaranteed Maximum Price ("GMP") of $330,000, consisting of $300,000 in fees and $30,000 in projected out-of-pocket expenses (e.g., travel, lodging, reproduction, copying, and other out-of-pocket expenses). To the extent that the MEU Study Team can reduce the time, materials or costs associated with completing Phase I of the MEU Project, every effort will be made to realize such savings. F. PROJECT SCHEDULE Assuming that the Phase I Consulting Agreement is timely awarded, (i.e., on or before March 19, 2003), the MEU Study Team is prepared to commence work on Phase I of the MEU Project (commencing with Task No. 1) on March 19, 2003. The MEU Study Team commits to providing the City Staffwith a draft of Phase I Report on or before June 6, 2003, and to provide the City with a final report, which includes all City Staff comments, on or before July 18, 2003. It is anticipated that representatives of the MEU Study Team will meet and confer as necessary with representatives &the City Staffbetween June 6, 2003 and July 18, 2003, to ensure that both the MEU Study Team and City Staff fully understand the content of the draft report and agree that all necessary work has been completed on each Project Task to allow the City Staff and the City to make an informed decision on the contents and recommendations of the Final Report and to make further critical decisions respecting the implementation of Phase II of the MEU Project. As required in this Section of the RFP, the MEU Study Team provides the following projected schedule for the completion of each of the discrete Tasks set forth in Section D (Technical Proposal) above: TASK 3/19- 3/28- 4/11- 4/25-5/9 5/9-5/16 5/16- 5/30-6/6 6/9-7/4 3/28 4/11 4/25 5/30 Task I Energy and Strategy Action Plan Review Task 2 Review of Chula Vista characteristics Task 3 Forms of MEUs Task 4 MEU Formation Process Task 5 Financial and human capital resollrces Task 6 Costs, risks of MEU formation Task 7 Legal, regulatory framework Task 8 Benefits of Chula Vista forming MEU Task 9 Case Studies Task 10 Alternatives Task 11 Recommendations Finalize draft report X X X X X X X X X X X X X X X X X X X X 7/7-7/18 1 Staff comments - possible meetings, conferences with City Staff Integrate Staff Comments; prepare final report Workshop (date to be determined by City) X X G. CONTRACT EXCEPTIONS The MEU Study Team does not propose any exceptions or changes to the model consulting agreement set forth in Attachment 2 to the RFP. Noting that the City has styled the Agreement as a "Sample Two-Party Agreement," the MEU Study Team suggests that, ifa contract is awarded to the MEU Study Team proposed herein, it be set up for authorized signatures by duly authorized representatives of the City and by a duly authorized representative of each member of the MEU Study Team (i.e., Duncan, Weinberg, Genzer & Pembroke, P.C., McCarthy & Berlin, L.L.P. and Navigant Consulting, Incorporated). H. COMPANY LITERATURE With the exception of the Statement of Background and Qualifications of Members of the MEU Study Team set forth in Attachments 1 and 2, and the financial information set forth in Attachment 3, the MEU Study Team has not included company literature, brochures or other superfluous material which does not bear directly on the requirements and specifications of the RFP. During the course of the Phase I study and analysis and in the preparation of the draft and final reports to the City, the MEU Study Team may find it instructive and useful to reference and include materials developed in the course of our representation of other energy and utility clients. In the event that such material is referenced or used in the course of the study and included in the draft or final report, the MEU Study Team member sponsoring or providing such information will obtain all necessary clearances or waivers required to protect the confidentiality and proprietary interests of our respective clients. x ATTACHMENT 1 STATEMENT OF QUAI,IFICATIONS DUNCAN, WEINBERG, GENZER & PEMBROKE McCARTHY & BERLIN STATEMENT OF QUALIFICATIONS DUNCAN, WEINBERG, GENZER & PEMBROKE McCARTHY & BERLIN In this section, Duncan, Weinberg, Genzer & Pembroke ("DWG&P") and McCarthy & Berlin ("M&B") provide a Statement of Qualifications in a brief overview of the Firms; a discussion of the Firms' experience relative to the City's RFP requirements; an overview of projects similar in scope called for in the City's RFP; and the resumes of key personnel designated for performing portions of the feasibility study for the project. DWG&P AND M&B OVERVIEW Since its founding in 1971, DWG&P has provided a broad range of counseling, regulatory, litigation and legislative services to clients in every region of the country. The Firm's principal office is in Washington, D.C., and it maintains offices in San Jose, California (now an association with M&B as "Of Counsel"), and Syracuse, New York. The Firm's practice includes energy and utility law, environmental law, communications law, municipal law, and intellectual property law. The Firm has attained a prominent and highly regarded position in these practice areas by developing innovative approaches and achieving precedent-setting results for its clients. DWG&P and M&B are committed to providing personalized service and excellence in representation. Our objective for each client is to offer innovative solutions to business, regulatory, litigation, and legislative challenges. The Firms provide personal and careful attention to each client's needs, and maintains a flexible approach to achieving desired results in the most cost-effective manner. The Firms' service to their clients reflects a broad range of interests, involving local, state, and national representation. The Firms serve: · Municipal electric utilities, rural electric cooperatives, irrigation districts, and joint action agencies · Regional and national energy supply, transmission and service associations and organizations · Municipalities, states and other governmental units · Communications-service users, providers, licensees, and regulators · Large energy users and power marketers DWG&P and M&B focus on the unique needs of each client in order to provide the best possible advice and to structure creative and appropriate solutions that achieve each client's objectives. Our breadth of technical experience provides the Firms' clients with cost-effective counseling and representation in industries undergoing market-driven and regulatory restructuring. The objective always is to provide high quality and focused representation at reasonable and competitive rates. ENERGY AND UTILITY LAW DWG&P and M&B represent clients in energy and utility matters, particularly on matters involving the electric and natural gas industries. The Firms' experience enables them to provide prompt, accurate and in-depth analysis of state and federal utility issues, laws and regulations. The Firms develop creative strategies and appropriate solutions for clients, provides advice on business decisions, drafts and reviews contracts and agreements, and serves as transactional counsel. In addition, the attorneys of DWG&P and M&B have extensive experience in trial and appellate litigation before state and federal administrative agencies and courts and legislative representation at the state and federal levels. The Firms' energy and utility law services include: Consultation and litigation in federal and state restructuring activities, utility mergers, acquisitions, divestitures and corporate restmcturings Business advice and litigation in transmission access and pricing proceedings Corporate counsel for entities that focus on energy issues Consultation in the development of bulk power supply plans, demand-side management, and acquisition of federal and non-federal hydroelectric power Legislative advocacy on the full range of federal and state energy and utility matters Consultation on national and international energy activities Negotiation and litigation of wholesale and retail rates Consultation and drafting of documents on matters pertaining to utility power supply acquisition, pooling, interconnection and operational agreements Formation of new public power entities, agencies, and associations Consultation and litigation in state and federal licensing and utility franchise-related proceedings Consultation and litigation on natural gas certificate and jurisdictional issues The Finns' attorneys have conducted extensive and complex state and federal public utility litigation. Members of the Firms have advised individual consumer-owned utilities, States, energy service companies, and customers of large, privately-owned utilities in generation, transmission, distribution, wholesale and retail service, and energy efficiency and renewable energy projects. The Firms draw upon the experience of numerous attorneys in responding to each client's energy and utility concerns. ENVIRONMENTAL LAW DWG&P and M&B have traditionally represented many of its utility and municipal clients in environmental matters. The Firms' broad experience in environmental issues enables it to provide clients with a full range of environmental services, from litigation of environmental matters to the development of long-term compliance strategies. The environmental practice group's experience includes counseling regarding environmental compliance, acquisition of state and federal permits, negotiation of consent orders, representation of clients before Congress, state and federal agencies, and environmental litigation before administrative agencies and the courts. The Firms' environmental services include: Consultation on compliance with the Clean Air Act, including sulfur dioxide and nitrogen oxide requirements and emission allowance options Analysis of Environmental Impact Assessments at the federal and state levels Litigation and advice on hazardous waste, toxic substance and solid waste management issues, including generation, treatment, recycling, storage and disposal activities, and remediation of contaminated facilities and properties Permitting for wetlands and analysis of other Clean Water Act issues Advice and counseling on federal and state regulations goveming the transportation of hazardous materials The attorneys of DWG&P/M&B have familiarity, not only with the substantive environmental issues faced by utilities and municipalities, but also with the unique public relations and political challenges that public entities face. The Firms draw on the background and experience of several attorneys with specialized expertise in this area for responding to each client's needs. MUNICIPAL LAW DWG&P and M&B have extensive experience in municipal law, having served large and small municipalities' legal requirements for over thirty years. The Finns' insight into municipal concerns and its broad municipal experience enables it to provide effective and focused legal support to municipalities. The Finns serve municipalities directly, through the municipalities' law departments, and by working with other municipal outside counsel. The Firms' municipal law services include: Negotiation, enforcement, and litigation of contracts Document drafting for industrial development Preparation of requests for proposals for services to municipalities Drafting of ordinances, referenda and other local laws or regulations Representation before state and local commissions and legislative bodies Analysis of and consultation and litigation on rights-of-way and utility franchise and service territory issues DWG&B/M&B draw upon the experience of attorneys who have practiced law in diverse regions of the country to arrive at timely and practical solutions to municipal legal problems. Members of the Firm are licensed to practice law in several states, including the State of California. DWG&P maintains offices in Washington, DC, San Jose, California and Syracuse, New York. The Firms also associate with local counsel when necessary to provide municipal clients with the full range of legal support associated with a project. SIMILAR PROJECTS The following projects illustrate and describe past or ongoing assignments performed for clients by DWG&P/M&B that are similar in scope and nature to the services called for in the City's RFP: City of Sherrill, New York The City of Sherdll, New York, in 1979, formed a municipal electric utility by acquiring all of the assets of Shen'ill-Kenwood Power & Light Company (a wholly-owned electric utility subsidiary of Oneida Silver Company). DWG&P (then Duncan & Brown) was engaged to perform (in collaboration with an engineering consultant) an initial feasibility study and to represent the City in negotiating the purchase of the Shen'ill-Kenwood electric distribution system and the negotiation of all necessary power supply, transmission service agreements and intemonnection agreements necessary for the City to commence operations as an operating municipal utility. 4 When the feasibility study showed that substantial benefits would accrue to the City through municipal ownership of the electric utility, DWG&P commenced and completed negotiations with Sherrill-Kenwood for the acquisition of all necessary utility facilities and successfully obtained the approval by the Public Service Commission of New York for the acquisition. DWG&P also filed an application with the Power Authority of the State of New York for an allocation of preference power from the Niagara Power Project to provide all of the electric requirements to meet the electric needs of the City of Sherfill and of Oneida Silver Company, a large industrial customer within the City. That application was granted and DWG&P then negotiated the transmission service agreements necessary for the delivery of Niagara Project power to the City and an interconnection agreement with Niagara Mohawk Power Corporation ("Niagara Mohawk") to interconnect the acquired distribution system with Niagara Mohawk and the transmission grid owned by Niagara Mohawk. The City commenced utility operations in 1979 and immediately reduced electric rates to consumers in the City of Sherrill, including Oneida Silver Company, by more than 24%. Today, the City of Sherrill continues to provide low-cost electric power to 'its residential, commercial and industrial customers at rates which are less than half those paid by consumers in the neighboring communities which are served by Niagara Mohawk. Mr. Duncan served as lead counsel for the City of Sherrill throughout the municipalization process. DWG&P is still engaged as the utility counsel for the City of Sherrill. Town and Village of Massena, New York In 1972, DWG&P (then Duncan & Brown) was engaged by the Village of Massena, New York, to conduct, in collaboration with an engineering consultant, an initial feasibility study for the formation of a municipal utility and the acquisition of the utility distribution system of Niagara Mohawk in the Town and Village of Massena. Based on a favorable feasibility study, the Town of Massena (which undertook to complete the project initiated by the Village), engaged DWG&P to negotiate the acquisition of assets from Niagara Mohawk and to negotiate a power supply contract with the Power Authority of the State of New York. When negotiations with Niagara Mohawk failed, DWG&P, in collaboration with the Town Attorney, was authorized to file a condemnation case and other litigation necessary to acquire the utility distribution assets of Niagara Mohawk in the Massena service territory and establish a municipal electric distribution system. DWG&P represented the Town in the condemnation proceedings, in antitrust litigation, and in several proceedings before the Federal Power Commission (now FERC) to secure electric interconnections and the facilities needed to operate the municipal electric system. Mr. Duncan acted as lead counsel for the Town of Massena throughout the municipalization process. The litigation lasted almost eight years, but was successfully concluded in early 1981 and the Town commenced the operation of its municipal electric utility on May 8, 1981, serving both the Town and Village of Massena and three neighboring communities formerly served by Niagara Mohawk. DWG&P also negotiated a power supply contract with the Power Authority to provide low-cost hydropower to meet the electric needs of most of the customers of the new utility. Necessary supplemental power was obtained from other Power Authority resoumes and from other electric suppliers in the region. Initially, the Town of Massena reduced the electric rates of its customers by more than 20%. Today, the Town provides safe and reliable service to its service territory customers at rates which are approximately 50% lower than the rates paid by Niagara Mohawk's existing customers in neighboring communities. DWG&P was also engaged to assist the Town of Massena in establishing its Municipal Electric Utility Board ("MEUB"), a separate agency of the Town of Massena which provides the governance for the Massena municipal electric system. DWG&P has continuously provided legal services and litigation assistance to the Town of Massena and the Massena MEUB since Massena commenced utilityi operations in May 1981. County of Westehester, New York In 1980, DWG&P (then Duncan & Brown) was engaged by the County of Westchester, New York, to conduct an initial feasibility study, in collaboration with an engineering firm, for the establishment of a county-wide municipal utility system to provide utility services to over 980,000 co. unty residents which receive service fi.om Consolidated Edison Company ("Con Ed"). Once the feasibility study was completed and accepted by Westchester County, the County called for a referendum on the public ownership of the utility system and sponsored a series of public hearings and debates throughout the County before the referendum was presented to the voters in the general election. DWG&P, together with the County's engineering and financial consultants, appeared at all public hearings and debates to explain and defend the findings and conclusions reached in the final feasibility report. Mr. Duncan acted as lead counsel to the County during the feasibility and heating process. Although the feasibility report showed the potential for lower utility rates and other substantial benefits of public ownership, the proposal set forth in the referendum was narrowly defeated in the general election and the County continues to be served by Con Ed at rates which are among the highest in the Nation. Modesto Irrigation District ("MID") (Modesto, California) DWG&P has provided legal services to Modesto Irrigation District as Special Utility Counsel since 1985. DWG&P negotiated an interim intereonnection agreement with Pacific Gas and Electric Company ("PG&E") in 1986 and a permanent interconnection agreement with PG&E in 1987. 6 More recently, DWG&P has performed legal studies to assist MID in the expansion of both its facilities (e.g., the construction of the Westley-Tracy Transmission line, MID's participation in the California-Oregon Transmission Project, and the development of new thermal generating units located in Modesto), and the expansion of its service territory to enable MID to provide utility services to neighboring communities including Ripon, Escalon, Riverbank and Oakdale, California. DWG&P also provided a legal feasibility study to MID respecting the takeover of PG&E's electric distribution facilities at Pittsburg, California, a community which is remote fi.om the existing MID service territory. Although MID eventually elected to forego the option of extending its service territory to include Pittsburg, its efforts, including a favorable feasibility analysis, allowed MID to negotiate substantially improved service conditions under its Intemonnection Agreement with PG&E. MID's proposed extension of service to the communities of Ripon, Escalon, Riverbank and Oakdale, is still under consideration by MID. DWG&P continues to assist MID in its consideration of the proposed expansion of its service territory to include these communities and unincorporated areas adjacent thereto. Over the years, M&B has represented MID on such issues as Federal power allocations from the Western Area Power Administration, an arbitration proceeding to resolve a dispute with the City and County of San Francisco over pricing of Hetch-Hetchy power, a claim against PG&E for failure to provide transmission services, and a legal analysis of proposals to purchase natural gas supplies from private energy producers as a primary fuel for District-owned power plants. Transmission Agency of Northern California The Transmission Agency of Northern California ("TANC") was formed in 1984 and engaged DWG&P as special counsel in May 1985. DWG&P has represented TANC in its utility interface with other utilities and the Federal power marketing agencies since 1985. Between 1985 and 1997, TANC planned and constructed the 345 mile 500 Kv transmission project between Central California and the Oregon border (California-Oregon Transmission Project or "COTP"). DWG&P assisted TANC in assessing the feasibility of financing and building the COTP and interconnecting the COTP with the existing facilities of Pacific Gas and Electric Company ("PG&E") and the Pacific Northwest-Southwest Intertie. DWG&P represented TANC in the negotiation of a series of complex legal agreements under which the COTP is interconnected and operated in coordination with the PNW-PSW Intertie and other utility systems. These agreements, now on file with the FERC, were the subject of protracted litigation before the FERC, in which TANC was successfully represented by DWG&P. The Firms also represented TANC before the CPUC in proceedings initiated by PG&E for approval of PG&E's application for authority to divest its Morro Bay Generating Plant. TANC also has the contractual rights to 300 IVlW of firm transmission service on PG&E's transmission system between PG&E's Tesla and Midway Substations. DWG&P has successfully defended and protected TANC's transmission rights under the South of Tesla Principles under which PG&E agreed to provide transmission service to TANC and TANC's Members. Currently, DWG&P is assisting TANC in assessing the legal and technical feasibility of contracting with the Western Area Power Administration to upgrade portions of the Pacific SW Intertie and the formation of a new electric control area which will include the COTP, Western's transmission facilities and rights, and those of other utilities in the region to enable the participants to avoid or minimize the use of the ISO Controlled Grid and the enormous costs associated with obtaining transmission service from the California ISO. M-S-R Public Power Agency M-S-R is a joint powers agency composed of the Modesto Irrigation District and the Cities of Santa Clara and Redding, California. While employed by the City of Santa Clara, Mr. McCarthy was involved in the creation of this joint powers agency in 1980, when the primary focus of the Agency was to develop State-owned geothermal properties in the Geysers, and has provided assistance to the Agency on a number of projects. While in private practice, both individually and as a principal in DWG&P, he participated in the development of internal operating agreements, power sales and exchange agreements with the Bonneville Power Authority and other agencies in the Pacific Northwest, and performed significant legal analysis with regard to the District's participation in the Adelanto-Lugo Transmission Project. He also provided substantial legal support in connection with the recently concluded restructuring of the Project Agreements for the San Juan Project, a four unit, coal-fired power plant located in New Mexico, in which M-S-R has a substantial ownership interest. DWG&P has, for many years, represented M-S-R in numerous proceedings before the FERC, including those related to the restructuring of the electric utility industry in California. DWG&P also represented M-S-R in litigation related to the ownership, by M-S-R's Members, of an interest in San Juan Generating Unit No. 1 and transmission access over the transmission system of Tucson Electric Power Company. Northern California Power Agency NCPA is a Joint Powers Agency whose members include the cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, Santa Clara, and Ukiah, as well as the Port of Oakland, the Truckee Donner Public Utility District, and the Turlock Irrigation District. M&B serves as special counsel for NCPA in connection with several different proceedings before the CPUC. M&B recently represented NCPA in PG&E's application to divest its extensive hydroelectric resources and related assets. M&B analyzed the auction proposal put forward by PG&E, prepared expert testimony, and cross-examined PG&E and other witnesses in order to demonstrate the market power problems and anti-competitive effects associated with allowing PG&E unregulated affiliates to participate in the auction. M&B also represents NCPA before the CPUC in a proceeding to review and eliminate transmission system constraints, and provide regulatory support for bankruptcy counsel representing the Agency in the current PG&E bankruptcy proceeding. 8 City of Palo Alto The City of Palo Alto, which operates both an electric and a natural gas utility, has retained M&B finn to provide advice and counsel on a number of natural gas matters and electric industry restructuring issues. M&B carrently represents the City in a CPUC proceeding investigating the PG&E holding company structure and the Commission's investigation into transmission system constraints. M&B also represents Palo Alto at the CPUC in connection with PG&E's application to extend the Gas Accord, first adopted in 1998, beyond 2003. M&B recently assisted the City Attorney and utility staff in the negotiation of natural gas supply and services agreements. Independently, DWG&P represents the City of Palo Alto in numerous FERC proceedings. City ofSanMarcos M&B was engaged to serve as energy counsel for this municipality, located in northern San Diego county, in its efforts to explore energy supply and service options, both by way of municipalization or community aggregation, and by participating in power plant development. M&B assisted the City in connection with its acquisition of a 20-MW interest in the Magnolia Power Plant Project, a 240-MW gas-fired power plant project to be constructed in the City of Burbank, and owned by the Southern California Public Power Agency (SCPPA). M&B also represented San Marcos on the Magnolia Project Legal Committee, which is charged with the preparation of all Project agreements and the investigation of legal issues relating to the Project. In furtherance of thc City's goal of implementing a full scale municipal utility, or in the alternative initiating a community aggregation program, M&B has been active in drafting the necessary agreements and ordinances, as well as tracking relevant legislation and participating in related proceedings before the CPUC. City of Alturas Recently, M&B conducted a review and legal analysis of a proposed wholesale natural gas supply and sales agreement designed to make natural gas services available to this rural general law city in Modoc County, California. Pursuant to the proposed agreement, the supplier would construct a gas distribution system under the City's natural gas franchise ordinance and sell natural gas directly to the City for eventual resale to City customers. City of Anaheim For the last several years, M&B has provided counsel and advice on electric restructuring issues to the City of Anaheim and its electric utility. M&B has also represented the City in connection with several proceedings at the California Public Utilities Commission, including Commission rulemakings concerning distribution system maintenance and emergency standards, utility undergrounding rules, and distributed generation. M&B represented Anaheim in a CPUC proceeding involving the implementation of legislation (AB 970) requiring identification of constraints affecting the state's transmission system and related matters affecting the reliability of electric supply. M&B currently represents the City in connection with the Southern California Edison Company general rate case at the Commission. City of Indian Wells DWG&P and M&B have been retained by the City of Indian Wells to assist in its efforts to provide an electric distribution network and explore the feasibility of various options to provide utility services to its residents and businesses. This project is currently in progress. Fuel Cell Demonstration Group2 From 1991 to 1993, Mr. McCarthy served as Project Counsel for the Santa Clara Demonstration Project, and was primarily responsible for the development of project agreements. The project consisted of the construction and demonstration of the nation's first utility scale (2-MW) molten carbonate fuel cell power plant. The fuel cells for the plant were produced and assembled by Energy Research Corporation and its engineering and construction subsidiaries. In addition to financial and technical contributions fi.om the Project Participants, the project received funding from the U.S. Department of Energy and the Electric Power Research Institute. Lassen Municipal Utility District M&B recently provided assistance to the LMUD, located in Lassen County, and its General Counsel in connection with a legal analysis of the extent of the District's exclusive fights to provide electric service to lands within a federal military installation upon closure of the base and implementation of a closure and reuse plan. M&B also researched and analyzed LMUD's statutory authority to enter into joint venture arrangements with other public or private entities to develop, construct, and operate generation and transmission facilities. City of Livermore In 2000 and 2001, M&B represented the Alameda County city of Livermore in connection with PG&E's Application to the CPUC for a Certificate of Public Convenience and Necessity to construct the Tri Valley 2002 Transmission Capacity Increase Project. During this proceeding M&B addressed issues involving land use, environmental impacts, recreational use, and airport safety, in hearings and in briefing. Final Commission action on the Application is expected before the end of September. 2 The members of the Fuel Cell Demonstration Group included the cities of Los Angeles, Santa Clara, and Vernon, as well as the Sacramento Municipal Utility District and the National Rural Elec~c Cooperative Association. 10 City of Moreno Valley M&B represents Moreno Valley, located in Riverside County, in negotiations for the development of electric distribution systems in new developments, and the operation and maintenance of such systems by a private contractor. City of Santa Clara DWG&P was initially retained by the City of Santa Clara in 1974 to negotiate and litigate the City's entitlement to preference power fi.om the Western Area Power Administration. DWG&P has continuously represented the City of Santa Clara (now operating its electric system as Silicon Valley Power), in proceedings before the FERC, the Federal Courts and other state and federal regulatory agencies. In 1982, DWG&P was engaged to negotiate a comprehensive interconnection agreement with PG&E which was filed with and approved by the FPC (now FERC) in 1983. Mr. McCarthy has worked for or represented the City of Santa Clara and its electric utility (now known as Silicon Valley Power) since 1977. As Assistant City Attorney, he was extensively involved in a number of generation projects, including the permitting of a 6-MW cogeneration facility (with legal support for the project's steam sales to the adjacent paperboard factory, and a successful natural gas exploration and development program in the Sacramento Valley to provide lower cost fuel for the project), development of hydroelectric facilities on the Stony Creek system in Northern California (including FERC and Bureau of Reclamation licensing, litigation at the State Water Resources Control Board to obtain the necessary water rights, as well as successful litigation and settlement with a Water Users' Association), development of a 50-MW combustion turbine peaking plant (including litigation involving jurisdiction of the California Energy Commission), and the negotiation of leases of City properties for the development of wind and landfill gas generation facilities by private parties. In the 1980's, Mr. McCarthy was the City's lead counsel in the successful defense of a state court proceeding brought by a number of industrial customers concerning electric rate actions taken by the City Council. He also provided substantial assistance in the legal assessment of the authority of the City to condemn a large hydroelectric project and related FERC license owned by PG&E. While in private practice, both independently and as a principal in DWG&P, Mr. McCarthy has frequently been retained by the City to assist in utility matters. He represented the City in a federal court proceeding involving statutory preference rights to federally generated power from the Central Valley Project, and the interpretation of a settlement agreement with the Western Area Power Administration, a federal power marketing agency. He was also involved in the negotiation of a number of unique customer contracts designed to retain larger customers in anticipation of competition in the electric industry. After Ms. Berlin joined M&B, M&B was retained by the City to provide a wide range of legal advice relating to electric restructuring, including the development of a "direct access" program, which provided customers of the City with a choice in electricity providers. Ms. Berlin was also active in the development of agreements for use by the utility's wholesale power trading program, and assisted in programs to implement several public benefits programs (required by restructuring legislation), including agreements for the acquisition and operation of electric buses to serve the local commuting needs of customer employees. M&B also represented the City in analyzing and implementing restructuring legislation, including the adoption of utility Rules and Regulations and statutorily required customer service standards. M&B represented the City in a number of administrative proceedings, including PG&E's application before the CPUC to divest its hydroelectric resources, which had the potential to negatively impact City-owned hydroelectric properties. M&B also represented Santa Clara in a CPUC proceeding to establish roles for distributed generation and intemonnection requirements, as well as PG&E's application for authority to construct the Northeast San Jose Transmission Reinforcement Project, and we are currently involved in the City's efforts to develop its own transmission facilities. DWG&P and M&B recently assisted the City in connection with the development of agreements with PG&E and its affiliates relating to the possible transfer of PG&E's Bucks Creek hydroelectric license under its Plan of Reorganization before the bankruptcy court. Santa Clara, as owner of the Grizzly Hydroelectric Project, is a co-licensee with PG&E under the Bucks Creek License and has approval rights over any proposed transfer of the license. Southern California Public Power Agency S CPPA is a joint powers authority whose members are Imperial Irrigation District, and the cities of Pasadena, Burbank, Glendale, Los Angeles, Vernon, Anaheim, Azusa, Banning, Colton, Riverside, Cendtos and San Marcos. Together with DWG&P, M&B was retained by $CPPA to represent its interests, and those of its members, in connection with the merger of Enova Corporation (the parent company of San Diego Gas & Electric Company) and Pacific Enterprises Corporation (the parent company of Southern California Gas Company), which resulted in the merged entity known as Sempra Energy, a Fortune 500 company. M&B conducted the litigation of the merger application before the CPUC, in concert with the activities of DWG&P at the Federal Energy Regulatory Commission. City of Sunnyvale M&B assisted the City in its efforts to export excess power fi.om its landfill gas generating project to the wholesale market. These efforts included the negotiation of agreements for the use of an electronic power trading platform to access the wholesale energy market, and agreements with PG&E under its wholesale distribution tariff and with the California Independent System Operator for obtaining the necessary transmission services. M&B also provided assistance in obtaining a subsidy for the Project from the California Energy Commission under its renewable projects program. In addition to the clients and matters set forth above, M&B has provided 12 legal representation to the California Municipal Utilities Association, as well as private energy developers, colleges, and universities in both northern and southern California, and large utility customers with regard to a host of regulatory and transactional matters. Other Legal Feasibility Studies Since its formation in 1971, DWG&P has performed more than thirty-five legal feasibility studies respecting the formation of a new municipal energy utility, the enlargement or expansion of an existing municipal energy utility or the expansion of the service territory or facilities of such utility, and the feasibility of participating, by ownership or contact, in utility resource projects, either individually or in concert with other utilities. With respect to the development of new MEUs, only two of the clients of DWG&P (Massena and Sherrill, New York) have actually proceeded with the formation of new MEUs. While other clients of DWG&P have elected not to establish an MEU based upon a showing of marginal feasibility or benefits, or as a result of adverse voter reaction on related referenda, many have been successful in achieving lower utility rates, better and more reliable service, or improved utility operations as a result of having conducted the feasibility study and raised the spectre of municipalization. In the case of existing MEU expansions, DWG&P has assisted a number of its clients, after performing a feasibility analysis, in expanding the service territory or facilities of the MEU through negotiations and, if necessary by condemnation. Projects of this nature have been conducted by DWG&P for the Cities of Newark (condemnation), Dover, Smyrna, New Castle and Seaford, Delaware; Rockville Centre, New York, Jamestown, New York, Freeport, New York, G-reenport, New York, Village of Green, New York, Solvay, New York, City of Santa Clara, California, Modesto Irrigation District (California), City of Redding, California, Allegheny Electric Cooperative (Pennsylvania), Hagerstown, Maryland, and Front Royal, Virginia. 13 RESUMES OF KEY PERSONNEL WALLACE L. DUNCAN Education University of Utah and American University, A.B., 1960 Washington College of Law, American University, J.D., 1961 Georgetown University Law Center, LL.M., 1962 Bar Admissions Califomia District of Columbia Utah United States Claims Court United States Court of Appeals for the 3rd, 4th and 9th Circuits United States Supreme Court Honors Magna Cum Laude (A.B.); Summa Cum Laude (J.D.); Honors (LL.M.); Gillette Prize, Delta Theta Phi Scholarship Society; E. Barrett Prettyman Fellowship; Editor, American University Law Review; Perle Mesta Scholarship; Certificate of Proficiency in Trial Advocacy (Georgetown University Law Center). Experience Following graduation from law school, Mr. Duncan was awarded the E. Barrett Prettyman Fellowship for graduate study in trial advocacy at the Georgetown University Law Center. From 1962 to 1965 he was Special Assistant to the Solicitor, United States Department of the Interior, where he specialized in natural resource and development problems. He joined a large Arizona firm in 1965 as Managing Partner, Washington, D.C. office, and was Washington Counsel for the Arizona Interstate Stream Conunission and the Salt River Project from 1965 through 1970. On April 1, 1971, Mr. Duncan formed the firm of Duncan & Brown, and has been member of the successor firms: Duncan, Brown & Palmer; Duncan, Brown, Weinberg & Palmer; Duncan, Weinberg, Palmer & Miller, P.C., Duncan, Weinberg & Miller, P.C., and Duncan, Weinberg, Genzer & Pembroke P.C., since that time, and is currently President of Duncan, Weinberg, Genzer & Pembroke, P.C. In private practice, Mr. Duncan has participated extensively in utility consulting work, rate and service proceedings and litigation, environmental consulting and litigation, natural resource development and the general practice of law. From 1982 until the reallocation of the electrical output of Hoover Dam was resolved in 1987, Mr. Duncan was a Special Deputy Attomey General for the State of Nevada. 14 WALLACE L. DUNCAN Organizations American Judicature Society California Municipal Utilities Association (CMUA) Federal Bar Association Great Lakes Electric Consumers Association (GLECA) Indiana Municipal Electric Association, Inc. (IMEA) The Bar Association of the District of Columbia The District of Columbia Bar The State Bar of California Utah State Bar 15 MICHAEL R. POSTAR Education George Washington University, B.A., 1976 Washington University School of Law, J.D., 1979 Bar Admissions District of Columbia Massachusetts Rhode Island Honors Federal Energy Regulatory Commission: Certificate for Outstanding Performance: 1983, 1987, 1988, 1989, 1990; Superior Performance Award: 1984, 1991; Superior Achievement Award: 1985; Award for Special Act or Service: 1986 Washington University Law Quarterly, staffmember, 1977-1979 Circle President, Omicron Delta Kappa, 1975 Pi Sigma Alpha, 1975 Experience Mr. Postar joined the Firm in 1992. He serves clients both in litigation and consultation capacities in the areas of public utility and communications law. He represents states, municipalities, cooperatively-owned rural electric utilities and large energy users. In communications, Mr. Postar provides advice to municipalities on cable, telephone and wireless communications. He assists numerous communities that have undertaken rate regulation under the Cable Act of 1992, including working with municipal officials to develop procedures and organizational structures, drafting local laws and analyzing rates. He also represents communities in the renewal of their cable franchises. In franchise renewals, he advises communities on renewal strategies, assists communities in the review of cable operator performance, develops public access programs, drafts model cable franchises that serve as the basis for negotiations with the cable operator and negotiates new agreements on behalf of the municipality. Mr. Postar's experience in the development of municipal cable systems includes preparing legal feasibility studies for fiber optic development and providing business advice on cable television and related 16 MICHAEL R. POSTAR communications services. He has represented dozens of municipalities in a variety of matters before the Federal Communications Commission, the New York State Commission on Cable Television and has made numerous presentations on cable matters to city, tom and village officials. Mr. Postar's public utility practice includes representing clients in electric, natural gas, and hydroelectric matters. His electric practice includes the representation of a large group of California municipal utilities in litigation respecting the use, operation and charges for new transmission facilities. He also advises electric clients on wholesale power and transmission issues, including rates, terms and conditions of service and the requirements of state and federal regulations, laws and precedents, including the Federal Power Act, the Public Utility Regulatory Policies Act of 1978 and the Energy Policy Act of 1992. Mr. Postar also has experience with, and has analyzed, demand-side management programs and integrated resource planning processes. His natural gas experience includes advise on federal natural gas pipeline certification and litigation involving natural gas rates, contract interpretation and rate design issues. Mr. Postar's hydroelectric practice includes advising a state in the implementation of its hydroelectric licensing program and the development of applications for federal preliminary permits and licenses. His public utility practice involves representation before the Federal Energy Regulatory Commission, state regulatory authorities, industry transmission and reliability entities, and state and federal courts. Mr. Postar began his legal career in 1979 as a staff attomey with the Rhode Island Public Utilities Commission. He represented the State in natural gas, electric, cable television, telephone, water and transportation proceedings. In 1981, he joined the Federal Energy Regulatory Commission where he served until 1992. In that capacity, he was assistant to the Chairman, supervisory trial attorney and attorney-advisor with responsibilities in electric, hydroelectric and natural gas proceedings. Mr. Postar co-authored "Warren's Cable Regulation Manual," a comprehensive guide to rate regulation and ~nforcement of customer service standards under the Communications Act of 1934, as amended. He also co-authored two articles on nuclear power plant decommissioning, Nuclear News, November, 1989, March, 1990, has co-authored several articles on the implementation of the Cable Act of 1992, and has spoken on cable regulation. He lectures at the Washington College of Law, American University and Catholic University Law School on current developments in federal energy policies and regulation. Organizations American Bar Association (Communications Law Forum) Federal Energy Bar Association The District of Columbia Bar Massachusetts Bar Rhode Island Bar 17 LISA S. GAST Education Rutgers University School of Law-Camden, J.D. 1997 The Pennsylvania State University, Smeal College of Business Administration, B.S. 1992 Bar Admission Maryland, 1997 District of Columbia, 1998 Honors Editor, Member, Rutgers Law Journal, 1995-1997 Charles E. Richter Merit Scholarship Recipient, 1995-1997 Author, "Developments in State Constitutional Law-1995," Rutgers Law Journal Experience The summer after her second year of law school, Ms. G,ast was employed by the Firm as a law clerk, her area of concentration within the Firm being public utility law on the federal level. During that summer, Ms. Gast also did extensive research on the issue of stranded cost recovery as it was to be applied under the Federal Energy Regulatory Commission's Order No. 888. Upon her graduation from law school in May of 1997, Ms. Gast became formally associated with the Firm. Since her formal association with the Firm, Ms. Gast has concentrated primarily in the Federal Energy Regulatory Commission disputes regarding the restructuring of the California electricity market. Among other things, Ms. Gast has been heavily involved in the numerous California ISO and California PX proceedings for the Firm's municipal clients. Organizations Federal Energy Bar Association (Asst. Treasurer 2000-2001) American Bar Association Maryland Bar Association Maryland Young Lawyers Association Penn State Alumni Association Rutgers Law School Alumni Association 18 DEREK ANTHONY DYSON Education Virginia Polytechnic Institute & State University, B.A., 1991 Florida Institute of Technology, M.B.A., 1994 Washington College of Law, American University, J.D., (with honors), 1999 Strauss Institute for Alternative Dispute Resolution, Pepperdine University Law School, 1999 Bar Admissions Virginia District of Columbia (Pending) Honors Panelist, Sylvania Woods Conference on African Americans and the Law, 1997, 2002 Academic Honor - Business Planning/Securities Regulation, 1999 Academic Honor - Government Contract Law, 1998 Participant, Frederick Douglass Moot Court Competition, Philadelphia, PA, 1998 Experience Mr. Dyson joined the law finn of Duncan, Weinberg, Genzer and Pembroke on January 1, 2002 as an associate. He specializes in public utility law and economic regulation, administrative law and litigation, with emphasis on representation in electric and natural gas regulatory matters before the Federal Energy Regulatory Commission, state commissions and the federal courts. He has experience in telecommunications law and in international energy deregulation and reform. Mr. Dyson also has considerable experience in the areas of government and commercial contract law. From 1991 to 1999, Mr. Dyson served as federal government contract negotiator and contracting officer with the Department of Navy and the Federal Energy Regulatory Commission. Mr. Dyson began his legal career in 1999 asa law clerk supporting three Administrative Law Judges at the Federal Energy Regulatory Commission where he assisted in all phases of the heating process in electric rate proceedings, merger proceedings and natural gas pipeline rate proceedings. Mr. Dyson joined a large international law firm, based in Richmond, VA, in 2000 as an associate attorney concentrating in the areas of energy, telecommunications and commercial contracts. There he participated in representation o f an independent system operator, as well as various other energy clients. Mr. Dyson also participated in the energy deregulation DEREK A. DYSON efforts of an Eastern European client, drafting and negotiating commercial contracts and various state telecommunication litigation. Organizations Virginia State Bar Association Virginia Bar Association Old Dominion Bar Association American Bar Association Energy Bar Association Board Member, Our Pride and Joy Foundation TAMIR BEN-YOSEPH Education The George Washington University Law School, J.D. 2002 Emory University, B.A. 1999 Bar Admission Maryland, 2002 Experience Mr. Ben-Yoseph served as Law Clerk for the Office of Market Oversight and Enforcement of the Federal Energy Regulatory Commission during the summer between his first and second years of law school. There, by assisting with the Commission's Enfomement Hotline and by providing support to the Office of General Counsel, he gained experience in administrative law and the administrative process, as well as gas and electric regulation, and hydroelectric project licensing. Mr. Ben-Yoseph joined the Firm as a law clerk after the completion of his second year of law school in May of 2001. He remained with the Firm, in such capacity, until his graduation fi.om Law School in May of 2002. Mr. Ben-Yoseph became formally associated with the firm after his admission to the Maryland Bar in December 2002. Since joining the Firm, Mr. Ben-Yoseph has concentrated primarily on public utility law and economic regulation, focusing on representation in electric regulatory matters before the Federal Energy Regulatory Commission. Organizations Energy Bar Association DAISY M. MATTHEWS Education Georgetown University, Washington, D.C., Paralegal Certificate, 1977 Antioch College, Yellow Springs, Ohio, B.A., 1969 University of Ibadan, lbadan, Nigeria, 1966-67 Experience After graduation from college, Mrs. Matthews was employed by Antioch College as an Instructor. After returning to the Washington area in 1970, Mrs. Matthews was employed by the D.C. Public Schools as a Research Assistant and Counselor. In 1975, Mrs. Matthews joined the National Housing Partnership ("NHP") as a paralegal. While at NHP, her duties included: preparing documents for the multi-family real estate developments built by the company; maintaining the records for the company's subsidiary corporations and limited partnerships; and serving as EEOC coordinator. Between 1979 and 1984, Mrs. Matthews was an independent paralegal working for various solo practitioners. During this period, Mrs. Matthews obtained experience in a number of substantive areas of law including general practice, bankruptcy, litigation and antitrust. Her duties during this period included: research at various administrative agencies, drafting pleadings, client interviews, setting up and maintaining litigation support systems, and trial preparation. Since joining Duncan, Weinberg, Genzer & Pembroke, P.C., in 1984, Mrs. Matthews's responsibilities have included: litigation support, research at administrative agencies and supervision of other paralegals. Her primary functions are assisting the Firm's attorneys in all aspects of trial preparation including organization of documents, research, drafting pleadings, preparing exhibits, summarizing testimony and attending and assisting at trial. In the litigation support area, Mrs. Matthews was responsible for researching and recommending the computerized litigation support software purchased by the Firm. Mrs. Matthews's research duties have taken her to most of the area's administrative agencies and major libraries. Assignments have included retrieval of documents from the National Archives, preparation of legislative histories and retrieval of documents and cases from various administrative agencies as they relate to the Firm's energy practice. Mrs. Matthews also trains and supervises and assists in the training of various law clerks and other paralegals employed by the Firm. McCARTHY & BERLIN, LLP BARRY F. McCARTHY Education Santa Clara University, J.D. (cum laude), 1975 Santa Clara University, B.A. (History), 1970 Bar Admissions California United States District Court for the Northem District of Califomia U.S. Court of Appeals, Ninth Cimuit Experience Mr. McCarthy's practice emphasizes energy and utility matters, administrative and regulatory law, municipal and other local government law, as well as cable franchising and other telecommunications issues. Energy and Utility Law Mr. McCarthy has represented clients in energy and utility law matters for over 20 years, and has significant experience in electric and gas industry regulation in California. This experience includes regulatory and transactional work relating to the licensing and development of electric generation projects, including cogeneration, hydroelectric, wind, geothermal, and landfill gas projects, the negotiation of bulk power purchase and sales agreements, natural gas acquisition and transportation agreements, federal power marketing issues, transmission projects, and numerous joint action agency activities. From 1984 to 1986, he served as General Counsel for Applied Power Technology, a private energy development company in Menlo Park, California, where he was responsible for all of the company's legal affairs. He represented the company in transactions involving the development, financing, and operation of non-utility electric generation facilities. In September 1986, Mr. McCarthy joined the firm of Duncan, Weinberg, Genzer & Pembroke, P.C., a Washington, D.C. firm which emphasizes energy, utility, and environmental law, as manager of the firm's California office. He currently is Of Counsel to the firm. Mr. McCarthy has represented municipalities, irrigation districts, joint power agencies and private sector clients in project development, resource supply, and transmission issues. Specific projects have included hydroelectric, geothermal, landfill gas, and cogeneration power plants, negotiation of power sales agreements with federal power marketing agencies, negotiation of a natural gas supply agreement to provide fuel to multiple power plants and wholesale natural gas supply and services agreements for a municipal gas utility, construction and upgrade of transmission facilities by a California joint powers agency, negotiations involving developers and purchasers of non-utility generation sources, and numerous dispute matters between customers and investor owned utilities. He represented a municipal utility in a federal court trial and appeal concerning allocations of federal power to preference agencies, and an irrigation district in a claim for damages arising from a transmission owner's failure to provide transmission services. In 1995 and 1996, Mr. McCarthy served as Project Counsel to the Fuel Cell Demonstration Group, a consortium of public and private entities that participated in the demonstration of the nation's first utility-scale application of carbonate fuel cell technology. He currently represents the City of San Marcos, a municipality in San Diego county, in connection with its participation in the development and financing of a 240 MW gas-fired power plant in southern California, and its efforts to provide energy services to its residents as an aggregator or a full scale municipal utility. With respect to the regulatory aspects of his energy practice, Mr. McCarthy has been active in numerous proceedings at the Califomia Public Utilities Commission (CPUC), the California Energy Commission (CEC), and the State Water Resources Control Board (SWRCB). CPUC proceedings have included the merger of Southem California Edison Company and San Diego Gas and Electric Company (on behalf of M-S-R Public Power Agency), the merger of Enova Corporation and Pacific Enterprises (on behalf of the Southern California Public Power Authority), the proposed divestiture of Pacific Gas and Electric Company hydroelectric assets (on behalf of the Northern California Power Agency and the City of Santa Clara), and the sale of PacifiCorp's distribution and related facilities in its California service territory to a joint powers agency (on behalf of a large industrial customer). Mr. McCarthy has also represented municipalities in transmission siting (CPCN) cases, including PG&E's Northeast San Jose Transmission Upgrade and the Tri Valley 2002 Capacity Increase Project. He has also been active in the Gas Accord proceeding on behalf of a municipal gas utility. Mr. McCarthy has also represented both public and private sector clients in various complaint actions at the CPUC concerning violations of Commission approved tariffs, proceedings seeking Certificates of Public Convenience and Necessity for construction and operation of electric transmission facilities, and a variety of Commission investigations, rulemakings, and other applications, including a proceeding involving the applicability of Commission imposed distribution system inspection and maintenance standards to publicly owned utilities, and a proceeding involving the development of policies relating to distributed generation and distribution system competition. 24 At the CEC, Mr. McCarthy has been involved in matters involving valuation of environmental externalities as they effect least-cost resource planning, and several transmission and power plant siting cases. At the SWRCB, he successfully represented a municipal utility in obtaining water fights permits for hydroelectric project development in Northern California. Municipal Law As Assistant City Attorney for the City of Santa Clara from 1977 to 1984, Mr. McCarthy provided advice and counsel to the City Council and the various City departments, boards, and commissions. He represented the City Planning Commission on a wide variety of land use and zoning matters, including CEQA litigation, use permit revocation hearings, and administrative appeals. He was responsible for the dratling of one of the county's first hazardous materials ordinances and was lead counsel for the development of contracts for a multi-jurisdictional public works project. Mr. McCarthy also handled a number of diverse litigation matters, including Public Records Act litigation, a major redevelopment agency lease dispute, and litigation involving various real estate transactions, including the City's acquisition of the Great America theme park. He successfully defended a city councilman against a suit alleging violations of the Fair Political Practices Act, and defended suits concerning water fights, electric rates, and operation of water treatment facilities. In a protracted administrative proceeding, he represented the city's electric utility in a jurisdictional dispute with the California Energy Commission concerning the right of a chartered city to construct a thermal power plant free of Commission siting authority. Environmental Law Mr. McCarthy has provided advice and represented both plaintiffs and defendants in numerous litigation matters concerning the applicability and interpretation of the California Environmental Quality Act. The disputes have arisen in a wide variety of contexts, including airport expansion, annexation of agricultural land, power plant development, electric transmission line extension, and real property development permits. He successfully defended a municipal electric utility in an enfomement action brought by the Environmental Protection Agency under the Toxic Substances Control Act and provided advice on the development of a comprehensive PCB containment and disposal plan. Licensing activities have included air quality permits and appeals, environmental review of transmission siting, hydroelectric licensing and relicensing proceedings at the state and federal levels, contested hearings at the State Water Resources Control Board, and local government permitting proceedings. Cable Television and Telecommunications Law As part of his cable and telecommunications practice, Mr. McCarthy has provided advice 25 to municipalities concerning rate regulation, enforcement of customer service standards, franchise renewals and transfers, and the provisioias of the Cable Acts of 1992 and 1994, and the Telecommunications Act of 1996. He has also represented community college districts in connection with the operation of a public access and educational channel for district purposes and for the City in which one of its campuses is 19cated, as well as license agreements and regulatory matters relating to the siting of cellular telephone facilities on college property. He also has represented community access cable channels in matters relating to channel relocation and contractual issues involving cable operators and franchising authorities. Mr. McCarthy co-authored a comprehensive Legal Feasibility Study in support of the development of a broadband communication system for a municipality. He was a guest speaker on legal issues relating to broadband infrastructure development at a June 1994 fiber-optic telecommunication seminar conducted by the California Municipal Utilities Association, and was a panel moderator (ARights-of-Way: Management, Valuation and Compensation" ) for a Regional Training Seminar sponsored by the National Association of Telecommunications Officers and Advisors. OrRanizations Associate Member, American Public Power Association Associate Member, California Municipal Utilities Association Member, Conference of California Public Utility Counsel Associate Member, Bay Area City Attorneys 26 C. SUSIE BERLIN Education Golden Gate University School of Law, J.D., 1995 Ca1 Poly, San Luis Obispo, B.S., Agribusiness, 1992 Bar Admissions California United States District Court for the Northern District of California Experience Ms. Berlin has practice extensive experience in municipal, energy, and administrative law, as well as construction and contract law matters. Prior to joining the firm, Ms. Berlin experiences include a position as a Deputy City Attorney for the City of Santa Clara, and a family law practitioner in private practice. Energy and Utili~. Law Ms. Berlin has represented municipalities and joint powers agency clients in various matters, including municipalization efforts, contract negotiations, and proceedings before the California Public Utilities Commission (CPUC). Ms. Berlin has been active in advising clients on various aspects of Califomia electric industry restructuring legislation and CPUC implementing decisions. She has provided memoranda to both private and municipal clients summarizing relevant legislation and CPUC decisions, on such topics as direct access implementation, consumer protection, municipal utility regulations, revenue cycle services, as well as various utility tariffs. Ms. Berlin has also worked with municipal clients, assisting in the development of direct access programs for municipal utilities, and with municipalization efforts for cities seeking to establish their own utilities. Most recently, Ms. Berlin has been working to negotiate planning, construction, operation, and power sales agreements on behalf of a southern California city who is one of seven municipal participants (all members of a joint powers agency) in the development of a power station, whose generation capacity will be divided among the various participants for serving their local load. Along with assisting in the development of the power plant agreements, Ms. Berlin has also assisted the City in the organization of a municipal utility and municipal aggregation program, has represented the City before the CPUC in related proceedings, and helps to track and monitor proposed legislative changes that would impact these efforts. Ms. Berhn also worked with the City's staff and the City attorney in the development a plan for the dedication of all future distribution facilities to the City, which would facilitate the City's eventual conversion to a full service municipal utility. 27 Some of the matters Ms. Berlin has worked on before the CPUC include the ongoing investigation into the implementation of Assembly Bill 970 regarding transmission congestion and related issues, the various proceedings addressing the State's 'energy crisis,' Pacific Gas & Electric Company's Application to market value and divest its hydroelectric facilities, the investigation into the transactions of the utility holding companies, the merger of Pacific Enterprises and Enova Corporation, rulemakings related to qualifying facility contract restructuring, and inspection and maintenance standards for municipal distribution systems. Ms. Berlin's practice before the CPUC has involved reviewing and responding to CPUC and party filings, drafting pleadings on behalf of clients and cooperatively with other interested parties, the development and drafting of testimony, presentation and cross~examination of witnesses, and the filing of legal briefs. Most recently, Ms. Berlin has also participated in the CPUC's proceedings regarding the future of direct access and the recovery of the Department o f Water Resources revenue requirements. Ms. Berlin also advises clients regarding proceedings before the California Energy Commission, including proceedings regarding the siting and interconnection ramifications of distributed generation and the potential impacts of power plant siting on existing transmission rights. Municipal Law Ms. Berlin has experience in various aspects of municipal law, including drafting of city resolutions, ordinances, and regulations, as well as negotiating, drafting and enforcing contracts; performing research and preparing legal opinions on a wide variety of public law issues, including state and federal preemption issues and California Environmental Quality Act matters. Ms. Berlin has counseled public agency clients on matters such as municipal utility ratemaking authority and utility users' taxes, as well as a dispute between a municipal utility and a federal power marketing agency. Ms. Berlin has worked extensively on service tariffs, customer service regulations, and developed a number of agreements relating to wholesale trading functions for a municipal electric utility, as well as both gas and electric power sales contracts. Ms. Berlin has advised municipal clients on compliance issues regarding AB 1890, including public benefits program administration, electricity consumer protection mandates, and municipalities' ability to serve as scheduling coordinators under rules adopted by the California Independent System Operator. Ms. Berlin worked closely with a municipal client in the development and implementation of an electric bus program, which received recognition from the California Municipal Utilities Association, for outstanding use of public benefit funds. Ms. Berlin's involvement on this project was extensive, and included drafting the various documents required to launch this innovative program, which involved coordinating agreements between project managers, bus manufacturers, vehicle operators, and the municipality itself. The electric bus program joined both pubic and private entities in a common goal of advocating alternate energy sources for mass transportation vehicles, and encouraging the reliable and comfortable use of public transportation. 28 / During her tenure with the Santa Clara City Attorney's office, some of Ms. Berlin's job duties included assisting in the preparation of litigation matters involving city code and zoning ordinance enforcement issues Litigation Ms. Berlin's litigation and trial experience is diverse and includes construction matters on behalf of both contractors and owners, family law matters, employment contract matters, administrative proceedings at the CPUC, code enfomement matters, and mediation and arbitration proceedings, both binding and non-binding. In one proceeding, Ms. Berlin successfully represented a general contractor client in a proceeding against the State of California. While working with the Environmental Unit of the Santa Clara District Attorney's office, Ms. Berlin performed extensive research and drafting, assisted in the collection of past due judgements, performed debtor's examinations, and provided legal analysis of various alternatives for collecting judgements from environmental polluters. Organizations Associate Member, California Municipal Utilities Association Member, Conference of California Public Utility Counsel Director, Sigma Alpha Sorority, Professional Women in Agriculture Member, Hellenic Law Society of Northern California Member, American Agricultural Law Association Associate Member, Bay Area City Attorneys Member, Cal Poly, San Luis Obispo, Alumni Association Other Interests Ms. Berlin expends considerable time serving on the Board for Sigma Alpha Sorority, a professional organization for women in agriculture. Her duties and responsibilities include the administration of the 4,500 member sorority's sponsorship program, and conducting leadership training and team-building seminars for collegiate members of the organization throughout the country. 29 ATTACHMENT 2 STATEMENT OF QUAI,IFICATIONS NAVIGANT CONSULTING, INC. STATEMENT OF QUALIFICATIONS NAVIGANT CONSULTING, INC. In this section Navigant Consulting provides a Statement of Qualifications in a brief overview of our firm (including contact information); a discussion of our experience relative to the City's RFP requirements; and an overview of four similar Navigant Consulting assignments; and the resumes of the key personnel for the project. NAVIGANT CONSULTING OVERVIEW Navigant Consulting is a focused management consulting company to Fortune 500 firms, government agencies, law firms and regulated industries, with our primary focus in North America and, extended capabilities in Europe and Asia. Navigant Consulting is the largest management- consulting firm in the United States extensively focused on the power industry. Our basic strategy is built on meeting our clients' needs and recognizing the changing and competitive environments in which they operate. This is accomplished by combining state-of-the-art market, economic and business strategies with specialized engineering, regulatory and environmental expertise. Navigant Consulting is uniquely qualified to provide a broad spectrum of energy projects. First and foremost, Navigant Consulting's primary industry focus is energy. Our core strength lies in helping energy utilities, investors, suppliers, and service providers respond to changing regulatory and market conditions. Navigant Consulting staffhave many years of energy industry experience and are supported by specialized industry information resources and commercial research capabilities developed and maintained to support the wide variety of on-going energy-specific consulting assignments. Moreover, we are solely a consulting business; we do not develop or invest in energy sector assets. Hence, we provide the technical and strategic expertise critical to ensuring objective, independent, and credibility to each of our consulting engagements. Navigant Consulting is comprised of two practice areas where we are competitively advantaged: Financial & Claims and Energy & Water. Navigant Consulting has over 1,200 employees, including 950 professional consultants. The focus of our Energy & Water practice is to provide superior consulting services to the electric, natural gas, and water industries. Our California practice primarily located in Sacramento, boasts over 100 consultants with extensive experience in the energy and water industries in Califomia. Our Sacramento office has been providing consulting services to local governments in California for over 21 years and our clients include almost all municipal and govemmental electric utilities in California. The majority of our project team members work out of the Sacramento office. The Navigant Consulting Contact Bryan Griess, Managing Director Navigant Consulting, Inc. 3100 Zinfandel Drive, Suite 600 Rancho Cordova, California 95630 Telephone: (916) 852-1300 E-mail: bgriess~navigantconsulting.com SPECIFIC FIRM QUALIFICATIONS The following are qualifications of Navigant Consulting directly related to desired expertise identified by the City in its Request for Proposal. Operation of a Utility Distribution Company As a part of Navigant Consulting Inc., RMI Utility Services, Inc., a wholly-owned operation and maintenance subsidiary, provides technical and management assistance for utility personnel, as well as long-term O&M support for power generation facilities, substations, transmission and distribution lines. In response to the growing demand for O&M expertise, RMI Utility Services offers a team of engineers and management specialists with extensive industry experience who can assist utility managers with utility services including, long-term operation and maintenance support, rehabilitation of utility systems, including repairs and capacity upgrades, planning and management of voltage conversions and overhead-to-underground conversions, organizational evaluation, training, and productivity improvement program development State Regulatory Agencies and Governing Bodies Navigant Consulting provides professional consulting services to a vast array of clients in the electric utility industry, including municipal utilities and joint powers agencies. The Regulatory Agencies at the State and Federal levels, CPUC, the California Energy Commission (CEC), and the Federal Energy Regulatory Commission (FERC) play an important role in shaping the environmem of the electric utility business. Navigant Consulting constantly participates in or monitors nearly all aspects of these agencies' actions relating to the electric utility industry to ensure that our clients are kept apprised on contemplated regulatory changes and other requirements that may affect their operations. State and Federal Legislative Issues As is the case with Navigant Consulting's efforts to monitor and report on the activities of state and federal regulatory agencies that govern California's electric utility industry, Navigant Consulting is also very active in monitoring and interpreting major legislative initiatives at the state and federal level. On a continual basis, Navigant Consulting's staff is present at legislative hearings and various subcommittees to report on the status and prepare summaries of proposed legislation that relate to the electric utility industry. Federal Preference Power The availability and marketing of Federal Preference Power serves as an important component in resource portfolios for numerous public agencies, municipalities, and municipal utilities in California. Consequently, Navigant Consulting is deeply involved in practically all aspects of the Western Area Power Administration's (Western) marketing of energy and capacity. Navigant Consulting currently provides support services to a series of Westem's Preference Customers regarding future services to be provided by Western under its Post 2004 Power Marketing Plan, Base Resource allocation, as well as future operations. Distribution Generation and New Technologies In conjunction with our regular monitoring of legislation initiatives and regulatory developments, Navigant Consulting actively monitors and participates in the changing regulatory issues affecting Distributed Generation (DG). Navigant Consulting's recent activities in the DG arena have included workshops on Rule 21 to streamline and standardize the DG interconnection process, as well as participating in CEC workshops to develop a strategic plan for the role of DG in California. Navigant Consulting continues to keep abreast of the various regulatory issues concerning DG including monitoring the various incentives offered via local, state and federal programs to enhance the economics of DG deployment. In the technology arena, our consultants track DG technologies such as renewable photovoltaics, fuel cells, and micromrbines and regularly attend industry seminars to stay apprised of best practices and market hurdles. Navigant Consulting has also conducted feasibility assessments for the deployment of DG as a mechanism to control volatile energy costs. Our technology neutral approach aids clients with a customized analysis of generating options under various scenarios and allows our clients to make informed decisions regarding the feasibility of pursing DG. Natural Gas UtiliW. Services In addition to Navigant Consulting's support to clients concentrated in the electric utility industry, our consulting services also extend to providing assistance to clients that operate in the natural gas industry. Within Navigant Consulting exists a natural gas practice that includes professionals with extensive experience in assisting clients such as municipal utilities, irrigation districts, independent power producers, and large end users with natural gas price forecasts, fuel acquisition strategies, and due diligence review. Gas Price Forecasting: Navigant Consulting has a proprietary, in-house gas price model to produce gas price forecasts. Navigant Consulting's model focuses on where the natural gas market sits today, and how key variables such as well completions and weather are likely to affect it going forward. Navigant Consulting publishes and updates its annual Henry Hub gas price target in its monthly NG Market Notes. Power Procurement Activities Navigant Consulting's role in assisting our clients in their power procurement efforts is unprecedented. Retained by the California Department of Water Resources (CDWR) in early 2001, Navigant Consulting serves in an integral role in the State's efforts to purchase the entire energy and capacity requirements umnet by California's investor-owned utilities. In addition to the significant effort undertaken on behalf of CDWR, Navigant Consulting has also assisted numerous clients to determine their energy and capacity requirements (load forecasts) as a part of the preparation and issuance of Request for Bids (RFB). Navigant Consulting also helps clients develop selection criteria and evaluate responses to RFBs, and negotiate terms and conditions for Power Purchase Agreements. Economic Feasibili .ty Studies and Engineering Support Navigant Consulting has assisted numerous municipalities and special districts to examine the feasibility of offering a variety of utility services. These clients have ranged in size from 1,500 customers to well over one million customers. As a part of our assistance, work efforts in this capacity includes valuation of distribution system costs, distribution system enhancement, financing options, litigation support, contract negotiations, and operation and maintenance. In addition to conducting feasibility studies associated with distribution system acquisition, Navigant Consulting served as the Project Manager for one of our largest clients, the Transmission Agency of Northern California, for the design and construction of a 340-mile high voltage (500-kV) transmission line (the California-Oregon Transmission Project [COTP]) which extends from central California to the Oregon border. Today, our support on this project includes serving as the Project Manager for all Operation and Maintenance and Capital Improvement Activities on the COTP. Financing Options Navigant Consulting has extensive experience in assisting our governmental clients identify and successfully implement a variety of financing options. As discussed below, Navigant Consulting was instrumental in the largest tax-exempt financing (over $7 billion) in United States history. We are very familiar with the investment banking conununity and regularly have financing work referred to Navigant Consulting from bankers and law firms. Navigant Consulting is very familiar with numerous creative options for local governmental utility financing. Navigant Consulting has assisted governmental agencies in financing billions of dollars for utility projects in California and throughout the United States. SIMILAR PROJECTS The following five projects illustrate recent and ongoing Navigant Consulting assignments that are similar to thc scope of this assignment. Ci.ty of Davis Navigant Consulting was recently retained by the City of Davis, California (City) to assist the City to explore options and alternatives available to the City related to the potential formation ora public power agency. An effort to create a municipal utility district (MUD) that would have included the City was rejected by the Yolo County LAFCO in the summer of 2000. The City, which was not directly affiliated with the MUD proposal, has retained Navigant Consulting to provide an independent assessment of the viability of the City entering into the electric utility business. Navigant Consulting informed the City that several key elements of the California electricity market are in a state of flux. Given the ongoing rapid pace of market evolution it was prudent to postpone the analysis of certain elements originally sought by the City until pivotal legislative and regulatory issues are resolved. For this reason, the analysis of the City's municipal electric options was performed in two phases. Phase- 1 addressed the known or stable elements and Phase-2 will address elements whose status is pending the resolution of active legal, legislative and regulatory proceedings. Based on Phase-1 findings, the City may elect to direct Navigant Consulting proceed with work on the Phase-2 elements presented in the scope of services. As an alternative, and based on the direction pivotal issues take during the course of completing Phase-l, the City could elect (and did elect) to shift the focus and content of the Phase-2 elements. Phase One of our study consisted of an analysis of various public power structures that included forming a City municipal utility department, annexation by the Sacramento Municipal Utility District (SMUD), and formation of joint power agency. Additionally, the study addressed power supply options (City owned generation vs. partnering with other entities); financing options for DSM, CEC grants and new generation projects; legislative and regulatory review (California Legislative Proceedings, CPUC, CEC and FERC Regulatory Proceedings); and PG&E's bankruptcy proceedings. The Davis Citizen's Task Force on Energy Issues responded to Navigant Consulting's Phase-1 written report and oral presentation by unanimously supporting the report's recommendations for the City of Davis and its neighboring city of West Sacramento to jointly adopt resolutions for annexation by SMUD. Following presentation to the Davis City Council, it too adopted the recommendations made by Navigant Consulting, unanimously, and passed a resolution to request SMUD to evaluate the annexation. After reading and evaluating the City of Davis Municipal Electric Utility Options Analysis prepared by Navigant Consulting, the City of West Sacramento city council also adopted a resolution requesting SMUD to evaluate its annexation. The SMUD Board of Directors is moving forward at this time to study the recommended annexation. Client Contract: Mike Goodison, Assistant Direqtor Public Works Department 530/757-5686 Kings River Conservation District Navigant Consulting has been retained by the Kings River Conservation District (KRCD) to investigate the options available for KRCD for the development of energy facilities, provision of retail electric services and potential electric utility formation. To assist KRCD in this important endeavor, Navigant Consulting developed a three-phased approach that consists of strategic options and alternatives for KRCD ranging from developing internal electric generation, to parmering with an energy company, to the creation of a local municipal electric utility. The rationale behind the phased approach was to provide KRCD with multiple decision points, off-ramps, and complete control over the Project, scope of services and costs associated with this significant undertaking. Navigant Consulting has recently completed the second phase of this Project and is currently working with KRCD on implementation of a diverse energy program. The first phase of the program provided KRCD with a 20-year load-forecast for its service territory, a preliminary assessment of the value of the existing electric distribution system, an analysis of the impact of California and Federal legislative and regulatory initiatives on KRCD's options, a discussion on the pros and cons of various utility structure options, power supply options available to KRCD, a discussion of utility operation issues, and finally a preliminary look at financial issues associated with any of the potential alternatives. Following, the presentation of the Phase I Report the KRCD Board of Directors authorized Navigant Consulting to provide a scope of services, which ultimately lead to Phase II of the work assignment - Financial Analysis. Under Phase II of the assignment Navigant Consulting developed a detailed financial model that examined multiple scenarios for the creation of a locally-owned utility and the potential provision of community aggregation. The model provided for an almost unlimited combination of participants in the locally-owned utility from just KRCD to KRCD plus 1 to 14 cities. The model included several variations on the 20-year load forecast, resource scenarios for meeting load, CAISO costs, distribution system costs, system expansion, severance costs, existing utility and Department of Water Resources Exit Fees, financing options, and several other components, which ultimately lead to the development of potential rate structures under both a utility or aggregation program. During Phase II of the assignment Navigant Consulting also provided numerous white paper and developed action plans for the development of generation and transmission resources for KRCD. Navigant Consulting presented the findings to the KRCD Board of Directors in October 2002. We are currently working with KRCD on Phase III - Implementation which includes the further development of several of the generation additions studied in Phase II. Client Contact: David Orth, General Manager Kings River Conservation District (559) 237-5567 Lonl~ Island Power Authori .ty The Long Island Power Authority (LIPA) retained Navigant Consulting to evaluate utility acquisition and restructuring plans for the Long Island Lighting Company (LILCO) to reduce what had become the highest cost of electric service in the continental United States. The objective of this comprehensive study was to develop a viable plan for achieving double-digit retail rate reduction through the acquisition of utility assets and organizational restructuring. LIPA assembled a team of engineering, financial and legal analysts to conduct the acquisition and restructuring study. The evaluation entailed five months of study, community presentations, news conferences, and public and legislative hearings and culminated in February 1996 with authorization fi.om the LIPA board to enter into negotiations with LILCO on proposed plan. Consequently, this effort resulted in the largest single tax-exempt bond issuance in U.S. history when LIPA acquired LILCO in a $7 billion financing in two branches of primarily tax-exempt financings in May and November 1998. Navigant Consulting played a key role in the financing of this acquisition, including explaining the manner in which risks of the acquisition would be managed, revenue would be available, competition in power supply would evolve, and retail electric rates 6 would decline based on the negotiated transaction and associated financing. Navigant Consulting continues to provide a wide scope of advisory and outsourced technical and management services for LIPA. Client Contract: Stan Klimberg, General Counsel Long Island Power Agency (516)742-2200 Cities of Antioch and Oaldey, California In 2002, the Cities of Antioch and Oakley, California, contracted with Navigant Consulting to assess the economic feasibility of providing electric service to certain specified redevelopment areas within both Cities. The study analyzed the anticipated number of accounts that could be drawn into these redevelopment zones as well as the capacity and total energy that these accounts would consume. The study further analyzed interconnections with a nearby generating station as well as a substation design and distribution system configurations. The components of both the load analysis as well as the transmission and distribution system design were incorporated into a master feasibility model. This model calculated potential energy costs as well as other required costs to operate a utility such as non-by-passable charges and operation and maintenance costs. The Cities are currently considering additional activities including a next phase of this study and a community aggregation study, which would assess the economic viability of providing electric utility service throughout both communities. The focus of the Community Aggregation initiative is to determine whether the Cities could provide energy at a lower rate than the incumbent electric utility on the generation component of a total bill. Most other components of the stated IOU tariffs would remain the same (i. e., transmission, distribution, nuclear decommissioning, CTC, etc.). Many issues will need to be clarified and addressed as the study progresses, especially those requiring CPUC determinations on exit fees and other related deacons. Client Contact: Ellen Bonneville, Redevelopment Director City of Oakley, California (925) 625-7016 City of South San Francisco Navigant Consulting was retained by the City of South San Francisco (CSSF) to develop a program and assist CSSF in identifying and evaluating opportunities to lower the costs of electricity for CSSF and its constituents. CSSF's local utility company is PG&E, whose rates are some of the highest electricity rates in the nation. CSSF was seeking to take advantage of regulatory and legislative initiatives that opened up the retail electric market. Navigant Consulting was retained to evaluate the options available to CSSF and devise and implement a strategy that would educate CSSF and constituents on retail electric choice and a program to select an alternative electricity provider and provide constituents an opportunity to participate in a city-wide program. / O0 Navigant Consulting initiated this assignment by holding planning meetings with the City Manager and key CSSF staff to develop an understanding and outline of the best strategic options for CSSF. Navigant Consulting presented several options to CSSF for its consideration, ranging from negotiations with PG&E to lower current power costs, to load aggregation and alternative energy suppliers, to the formation of a municipal utility. These meetings were followed by study sessions with the City Council and public workshops to determine which of the several alternatives CSSF should pursue. Navigant Consulting's assessment focused on: 1) existing CSSF power supply; 2) recent and ongoing regulatory changes governing the power industry; 3) changes in the regional power market in response to new regulatory actions; 4) the impact of those changes on CSSF's future power supply; 5) the uncertainties in the electric marketplace and their potential impact on CSSF's future power supply; and 6) desired characteristics of CSSF's future power supply. This assessment was used for CSSF's ongoing consideration of alternative power supply strategies. Additionally, Navigant Consulting used the results of this study to develop a detailed Request for Proposals (RFP) from potential power supply providers. The RFP indicated that CSSF was seeking a single power supplier to meet the needs of CSSF and any of CSSF's constituents who elected to participate in the program. Navigant Consulting assisted the City Manager in evaluating the best and final proposals as well as negotiations with the selected provider. Navigant Consulting also assisted CSSF in its negotiations with the alternative energy supplier in identifying multiple programs for different rate classes and implementation programs for residential, commercial, and industrial customers. Client Contact: Mr. Mike Wilson, City Manager City of South San Francisco (650) 877-8500 RESUMES OF KEY PERSONNEL Brian Griess Mr. Griess currently serves as Assistant Executive Director for a 15-member Califomiajoint powers agency with support in state and federal regulatory proceedings regarding the structure and operational protocols of California's independent system operator (ISO). Reviewed the terms and conditions of the agency's existing transmission service contracts to ensure contractual obligations would co-exist with ISO protocols. Also prepared an analysis of the economic and operational impacts of the ISO on the agency's transmission contracts. Managed the review and analysis of California ISO tariff filings and operating procedures. Prepared issue papers and FERC filings to represent TANC and its members. Provide expert witness testimony for TANC in various FERC filings. 8 Thomas Crooks Mr. Crooks has more than 25 years experience in the energy industry. He has performed research and evaluation of industry restructuring in other countries and states and reported to industry restructuring steering committees. His executive white papers and analyses have contributed to formulat'mg regulated tariffs, operating roles and deregulation implementation plans. Mr. Crooks has provided consulting services to municipal electric utilities, electric distribution, transmission and generation cooperatives, statewide associations, city governments, state agencies and end-use energy customers located throughout the United States and Canada. He possesses a comprehensive knowledge of electric utility rate structures, load research, modeling and management; power procurement as well as strategic and procedural aspects of utility formation. Between 1991 and 2001 while employed at Southern California Edison, Mr. Crooks evaluated consultant proposals to local governments to form municipal electric utilities and various forms of"spot-municipalization". He provided countervailing analysis and successfully opposed the formation of electric utilities in cities, "green-field" commercial developments and at closed and/or realigned military bases. Mr. Crooks possesses extensive knowledge of investor owned utility tactics and motivation and will manage the Technical Proposal project elements. Patrick Mealoy Mr. Mealoy is an economist and policy planner with over ten years experience in the energy industry. His expertise includes assessing the impact of federal, state, and local regulations, as well as developing strategies related to these policies. He has extensive experience in strategic planning, market assessment, economic forecasting, and industry trend analysis. Mr. Mealoy has been involved in the electric utility restructuring process since 1993. These forums include the state regulatory commissions, FERC, power exchanges, the legislatures, and local regulatory authorities. He has also aided governmental clients in the development and implementation of strategic plans and rate designs, and has prepared filings for FERC and state public utilities commissions. Catherine M. Elder Ms. Elder is a principal at Navigant Consulting, Inc. and is a leading natural gas expert. Ms. Elder has more than 15 years of experience in the natural gas industry beginning at Pacific Gas and Electric Company, where she was instrumental in developing and implementing the key natural gas deregulation policies applicable to gas transportation, underground storage, and capacity release on interstate pipelines. She has since worked with small LDCs, gas producers, and industrial end-users on a wide variety of assignments, including gas price forecasting, supply and transportation acquisition strategy, regulatory intervention on both policy issues and basic rate design/cost allocation issues, gas issues outlooks, market dynamics assessments, and pipeline economic feasibility assessments. She has provided expert witness testimony in both regulatory and civil litigation, including arbitration of fuel supply agreements and assessments of the presence of market power, and she has participated in FERC rate cases and complaint issues involving both PGT and EPNG. She frequently serves as an Independent Fuel Consultant or advisor, having assisted project developers and/or lender to more than 10,000 MW of power projects, including financings of new projects in Texas, Oregon, California, Arizona, Nevada, Alabama, Louisiana, Ohio, New Jersey and Oklahoma. Ms. Elder holds an A.B. with honors fzom the University of California, Berkeley and a Master in Public Policy from the John F. Kennedy School of Government at Harvard University. John Hunter Mr. Hunter, a Senior Engagement Manager with Navigant Consulting, Inc., brings 13 years of professional & technical experience including: electric & gas engineering and planning; supervision; gas code compliance; project management; new business planning; tax/fl'interpretation; budgeting; cost tracking; process analysis, change and implementation; resource management; and technical support. With a long career at Pacific Gas & Electric, Mr. Hunter has applied his expertise to a broad range of technical and managerial assignments, from performing gas area capacity planning for 38 gas transmission & distribution systems on the Stoner Associates planning software to system wide support of gas engineering issues. He also has expertise in electric transmission & distribution engineering and operations practices as well as a general knowledge of energy supply purchasing and acquisition techniques. He gained regional electric transmission and generation knowledge while being a member of the New England Power Pool's (NEPOOL) Reliability Committee. His experience makes him uniquely qualified for broad energy studies that require and understanding of multiple energy sources. Paul Maxwell Mr. Maxwell is a Director with Navigant Consulting, Mr. Maxwell is responsible for delivery of power project development related consulting services throughout North America, including project assessment, independent engineer/owner engineer, conceptual design and environmental permitting services. Mr. Maxwell advises clients across the wide range of power project implementation issues including siting, permitting, interconnection, financing, contracting, plant design, construction and operations. Mr. Maxwell is currently leading the efforts of Navigant Consulting as Independent Engineer/Consultant on several power projects, including the 134 MW Malburg Generating Station, the 250 MW Magnolia Power Project, and the 500 MW Klamath Cogeneration Project which is the largest and most fuel-efficient combined-cycle combustion turbine plant in the Pacific Northwest. For the California Power Authority, he led the efforts of Navigant Consulting in the evaluation of more than 3,000 MW of new peaking and renewable resources to serve California. For the California Department of Water Resources, he helped negotiate and administer power purchase contracts for large-scale combined cycle projects, and preparation of an Independent Consultant Report for issuance of more than $11 billion of power procurement funding bonds. He also negotiated and administered development, construction, operation and fuel supply contracts for the River Road Generating Project located near Portland, Oregon. He served as a Project Development Manager for an independent power producer, developing geothermal and natural gas fired projects around the western U.S. He served as a Mechanical Engineer for a major west coast utility, designing and installing control system retrofits at several large-scale gas fired power plants. He has performed site studies, evaluations and financial analyses for a multitude of existing and planned power projects across the western U.S. and Canada. Mr. Maxwell is recognized for his keen understanding of the critical technical and commercial success factors for power projects in the restructured energy marketplace. 10 Max Walenciak, P.E. Mr. Walenciak is a registered professional engineer with nearly 30 years of extensive and diverse project management experience across several gas fired and geothermal power plants. He most recently managed the engineering activities for the Southwestern Power Group, an independent power producer located in Phoenix, Arizona. This included design development, permitting support, negotiation of joint development agreements and selection of an engineering, procurement and construction contractor for a proposed new 2,000MW gas fired power project. Mr. Walenciak also managed the engineering, construction and daily operation activities of the River Road Generating Project, a 250 MW combined cycle plant near Portland, Oregon. He has designed and procured equipment for several geothermal projects, and consulted to geothermal plant developers and owners. He is known for his keen understanding of the design, procurement and construction process, and his ability to communicate, manage and resolve large scale, complex disputes. Larry. RieRle Mr. Riegle is a Senior Engagement Manager at Navigant Consulting with over sixteen years of professional experience. As a project manager, he has extensive experience in perforating comprehensive revenue/cost studies for nearly thirty municipal agencies, as well as conducting numerous electric utility cost-of-service and rate design studies, including electric utility feasibility studies. Mr. Riegle has made numerous presentations to City Counsels and Boards concerning the results of studies conducted. Additionally, Mr. Riegle has closely followed eleclric utihty restructuring and has worked for various clients regarding issues relating to PG&E, the Bureau of Reclamation, Western, and the CAISO. Shawn Mitchim Mr. Matchim, a resource economist and policy analyst with Navigant Consulting, has been assisting municipal clients to address and prepare for regulatory changes in the electric utility industry. Mr. Matchim has conducted several economic analyses and assessments on the impacts of regulatory changes on municipal utilities. Mr. Matchim has been intimately involved in the preparation of various economic models and cost-of-service studies, as well as providing analytical support for the development of strategic plans to assist municipal clients reviewing the opportunities afforded as a result ofindnstry restructuring. His support to municipal clients has included the preparation of various discussion papers for clients to review and better evaluate their options for participating in a competitive electric marketplace, as well as methods of reducing costs associated with power procurement. In addition, Mr. Matchim was intimately involved in the development of an economic/financial tool for to Santa Clara to examine the impacts of industry restructuring and direct access on its operations. Most recently, he has been working with a number of Northern California municipal utilities to develop a "user-friendly" economic model to examine the impacts of changes in power purchase contracts with Western. 11 John Foreman Mr. Forman is a Director at Navigant Consulting and an accomplished professional electric engineer with over 36 years of experience in power system planning and analysis. His expertise spans feasibility aSsessments, system studies, design, construction, and the operations and maintenance of transmission and distribution facilities ranging from local distribution systems up to 500-kV, including both AC and DC and underground applications. Mr. Forman was responsible for the successful start-up of several municipal electric utility operations. He oversaw the equally successful development of the high-profile 500-kV COTP as well as numerous other transmission facilities in the western United States. He was also instrumental in the effective planning, construction and start-up of the renovated 13.8-kV distribution system serving a complex of industrial facilities in Nevada. 12 RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SELECTION OF THE ENERGY CONSULTANT TEAM OF DUNCAN, WEINBERG, GENZER & PEMBROKE, MCCARTHY & BERLIN AND NAVIGANT CONSULTING 1NC. TO ANALYZE THE FiNANCIAL, LEGAL AND TECHNICAL FEASIBILITY OF VARIOUS POSSIBLE MUNICIPAL ENERGY UTILITY BUSINESSES, AND ALTERNATIVES THERETO; AUTHORIZING AND DIRECTiNG STAFF TO NEGOTIATE A CONSULTANT SERVICES CONTRACT WITH DUNCAN/NAVIGANT CONSISTENT WITH THE TERMS AND CONDITIONS OUTLINED HEREIN, AND DIRECTiNG STAFF TO RETURN WITH A FINAL PROPOSED AGREEMENT AND APPROPRIATION OF FUNDS FOR COUNCIL CONSDERATION. WHEREAS, in May 2001, in response to an unstable energy market, the City Council adopted the Chula Vista Energy Strategy and Action Plan; and WHEREAS, components of that plan included direction to pursue a cost benefit analysis of: (l) Operating a municipal energy utility, including the ownership and/or operation of all or a portion of the local distribution system; (2) Becoming a municipal aggregator for the pumhase of electricity for City facilities, residents and/or businesses; and (3) Partnering with the Port District to repower and/or acquire capacity in a reconstructed South Bay Power Plant; and WHEREAS, since Mary 2001, City staff has implemented many of the Energy Strategy action items, and has developed considerable in-house expertise on energy issues; however, given the complexity of energy issues, specialty consulting services are now necessary to complete a cost/benefit options analysis; and WHEREAS, to complete the analysis, staff determined the need to issue a request for proposal (RFP) for energy consultant services; and WHEREAS, the expiration of the electricity and natural gas franchise agreements with San Diego Gas and Electric provide the City with a unique opportunity to evaluate and make comparisons on the most cost effective means of providing reliable energy supply to City facilities, residents and businesses and controlling at least some of the revenues generated by the delivery of energy to local residents and businesses; and WHEREAS, on December 20, 2002, staff distributed the RFP by mail and email to more than sixty energy-consulting firms (including SEMPRA, SDG&E's parent company); and WHEREAS, on January 9, 2003, approximately nineteen representatives from fifteen consulting finns attended the pre-bid conference; and and WHEREAS, on February 7, 2003, the City received nine responses to the City's RFP; WHEREAS, a City MEU Selection Committee, approved by the City Manager, was formed to evaluate the proposals; and WHEREAS; this team included municipal industry experts as well as key City staff; and WHEREAS, a preliminary screening was conducted, and each proposal was numerically scored and ranked based on the City's selection criteria published in the RFP and the top five respondents to the RFP were placed on a short list for interviews; and WHEREAS, following the interviews, the energy-consulting firms were again numerically scored and ranked based on overall presentation, technical expertise, cost, and the ability to adequately address the proposed scope of work; and WHEREAS, the City's MEU Selection Committee unanimously, ranked the top two firms in the 1 and 2 positions. Duncan/Navigant and R.W. Beck, respectively were selected for further consideration; and WHEREAS, overall, the Duncan/Navigant team was identified as providing the best balance of skills and expertise necessary to deliver the required scope of work; and WHEREAS, the consultant selection process complies with the guidelines established by the City. The proposed consultant has performed no work for the City, and earned no money, during the past twelve months. Further, Duncan/Navigant has identified no potential conflicts of interest. WHEREAS, the cost proposal for the MEU Analysis is for a guaranteed maximum price of $275,000 including expenses; and WHEREAS, given the importance of this study in helping to compare the relative value of a long-term franchise renewal and on MEU business, staff believes this expenditure is more than justified. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the selection of the Energy Consultant Team of Duncan, Weinberg, Genzer & Pembroke, McCarthy & Berlin and Navigant Consulting Inc. ("Duncan/Navigant") to analyze the financial, legal and technical feasibility of various possible municipal energy businesses, and alternatives thereto. BE IT FURTHER RESOLVED that staff is hereby authorized and directed to negotiate a consultant services contract with Duncan/Navigant.consistent with the terms and condition outlined herein. . BE IT FURTHER RESOLVED that staff is hereby directed to remm with a final proposed agreement and a proposed appropriation of funds for City Council consideration. Presented by: Assistant City Manager Approved as to form by: J:\Attorney~Reso\energy consulting selection ITEM TITLE: SUBMITTED BY: COUNCIL AGENDA STATEMENT REVIEWED BY: Resolution modify the 2030 Regional Transportation Plan. Item ~ i Meeting Date: 3/25/03 Requesting the San Diego Association of Governments to (4/5tbs Vote: Yes __ No X ) Director of Planning and Building Director of Engineering~l~ City Manager (.0~ra hr,, Attached for your consideration is a revised Resolution reflecting staff's understanding of the discussion of this item at the March 18, 2003 Council meeting for your consideration. RECOMMENDATION: That Council approve the resolution. J:~Engineer~AGENDA~2030 RTP resolution-2.doc RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REQUESTING THE SAN DIEGO ASSOCIATION OF GOVERNMENTS TO MODIFY THE 2030 REGIONAL TRANSPORTATION PLAN WHEREAS, for the past year the San Diego Association of Government (SANDAG) has been working on the 2030 Regional Transportation Plan ("Plan"); and WHEREAS, the final draft of the Plan was authorized to be distributed at the February 28, 2003 meeting with a final vote of approval scheduled for the March 28, 2003 meeting; and WHEREAS, Chula Vista staffhad several concerns about the final draft Plan and presented those concerns to the City Council on March 18, 2003; and WHEREAS, City Council expressed a number of concerns with the Plan. NOW THEREFORE, BE IT RESOLVED the City Council request SANDAG modify the 2030 Regional Transportation Plan to address the following concerns: Although the Plan does not designatc two grade separation projects for the Trolley Line, Chula Vista is currently experiencing severe congestion at the intersection of"H" Street and I-5 during peak periods. SANDAG is urged to complete the study prioritizing this project to be completed as soon as possible and prior to completion of the "Transnet Extension" project list. The study should also consider prioritizing grade separations at I-5 and "E" Street at Palomar Street. Acknowledge comments made by the SANDAG Director of Transportation that the request for the extra lanes at SR-54 and 1-805 interchange will be added to the "Hot 1.ist" of projects being studied by CALTRANS. Acknowledge the Director's comment that there will not be a time category for 2014 in the Plan and that the I-5 HOV lane project will be on the list to completc before 2020 along with all other projects shown in the 2014 category. Indicate that there is severe congestion on i-5 and 1-805 now and consideration should be given to bonding some of these projects if Transnet is continued by the voters to speed up delivery of the project. In developing priorities for projects, consideration should be given to the fact that Chula Vista not only endorses Smart Growth, but has developed most of our Eastern Area with Smart Growth principles. Further, consideration should also be given to the fact that a major part of the regional freeway system ($400 million tollway) is being paid for by local funding in the form of tolls and not by regional funding. THEREFORE, BE IT FURTHER RESOLVED, that the City Council direct that a letter be sent to SANDAG indicating that if the concerns described above are incorporated into the Plan the City will support the amended Plan.. Presented by Approved as to form by Cliflbrd Swanson Director of Engineering Ann Moore City Attorney