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Agenda Packet 2003/10/21
NOTICE OF CONTINUANCE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Public Hearing scheduled for Tuesday, October 21, 2003 to consider: CONSIDERATION OF THE FORMATION OF COMMUNITY FACILITIES DISTRICT NO. 07-I (OTAY RANCH VILLAGE ELEVEN) AND AUTHORIZATION TO LEVY SPECIAL TAXES AND TO INCUR A BONDED INDEBTEDNESS SECURED BY SUCH SPECIAL TAXES was opened on October 21, 2003, and cominued to Wednesday, November 12, 2003, at 6:00 p.m. in the City Council Chambers located in the Public Services Building, 276 Fourth Avenue, Chula Vista, CA. Dated: October 22, 2003 Susan Bigelow, CIVIC, City Clerk ImlBI d ~1~ ~Ny OIId~ ~nd Um I plildtllB CITY COUNCIL AGENDA October 21, 2003 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista CI'IY OF CHULA VISI'A City Council City Manager Patty Davis David D. Rowlands, Jr. John McCann City Attorney Jerry R. Rindone Ann Moore Mary Salas City Clerk Stephen C. Padilla, Mayor Susan Bigelow The City Council meets regularly on the first calendar Tuesday at 4:00 p.m. and on the second, third and fourth calendar Tuesdays at 6:00 p.m. Regular meetings may be viewed at 7:00 p.m. on Wednesdays on Cox Cable Channel 24 or Chula Vista Cable Channel 68 AGENDA I declare under penalty oJi p.(j~r\, ¡~,il' I ~,:1 Iß1 lrv-cl by the City 01 Chuia Viata in the hi ... of !hi City Clerk and that I posted t a '1 - -'1 on !hi bullllln IIaMIIUh*'l to "'MI~?~" ,ÞÁ.--=-_ 0A1ID t~ '(;?¡ ~ _II!D~ 6:00 P.M. October 21, 2003 CALL TO ORDER ROLL CALL: Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY . PRESENTATION BY UNITED WAY REPRESENTATIVE, DONALD EPPS, OF A UNITED WAY "EXCELLENCE IN GIVING AWARD" FOR THE 2002 CITY EMPLOYEE CAMPAIGN CONSENT CALENDAR (Items I through 6) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 1. AFPROV AL OF MINUTES of October 7, 2003. Staff recommendation: Council approve the minutes. 2. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING A 50 M.P.H. SPEED LIMIT ON OLYMPIC PARKWAY, BETWEEN BRANDYWINE AVENUE AND LA MEDIA ROAD, THEREBY AMENDING SCHEDULE X OF A REGISTER MAINTAINED IN THE OFFICE OF THE CITY ENGINEER Based on the provisions of the California Vehicle Code (CVe), and pursuant to authority under Chula Vista Municipal Code Section 10.48.020, the City Engineer has determined that, in the interest of minimizing traffic hazards and for the promotion of public safety, the speed limit on Olympic Parkway between Brandywine Avenue and La Media Road be established at 50 m.p.h. (Director of Engineering) Staff recommendation: Council place the ordinance on first reading. 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR TRAFFIC SIGNAL MODIFICATION AT THE INTERSECTION OF FOURTH AVENUE AND ORANGE AVENUE 1N THE CITY OF CHULA VISTA (PROJECT TF-309) On September 17, 2003, sealed bids were received for this project. HMS Construction, Inc. submitted the lowbid of $25,110. (Director of Engineering) Staff recommendation: Council adopt the resolution and award the contract to HMS Construction, Inc., in the amount of $25,110. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PROPOSAL TO NAME THE OTAY RANCH VILLAGE SIX NEIGHBORHOOD PARK, "SANTA VENETIA PARK" (Continued from the meeting of October 7, 2003) On May 27, 2003, the Council approved the master plan for the Village Six Neighborhood Park. In order to establish a stronger village identity, City staff, Otay Ranch Company, and McMillin Company have agreed to name the park, "Santa Venetia Park." Santa Venetia is one of the promenade streets that both of the developers of Village Six (Otay Ranch Company and McMillin Company) share in common. (Acting Director of Planning & Building) Staff recommendation: Council adopt the resolution. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, RECON (CONSULTANT), AND OTAY PROJECT, L.P. (APPLICANT), FOR CONSULTING SERVICES RELATED TO THE PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT Adoption of the resolution approves the first amendment to the three-party agreement with Recon for consulting services relating to Villages Two, Three, Planning Area 18b, and portions of Villages Four and Seven. (Acting Director of Planning and Building) Staff recommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, RECON (CONSULTANT), AND MCMILLIN ROLLING HILLS RANCH, LLC (APPLICANT), FOR BIOLOGICAL MITIGATION MONITORING AND ENVIRONMENTAL SERVICES TO BE RENDERED FOR THE ROLLING HILLS RANCH SECTIONAL PLANNING AREA (SPA) PLAN, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT Page2 - CouncilAgenda 10/21/2003 In compliance with State law, a mitigation mc nitoring and reporting program (MMRP) was adopted by the City Council for the Rolling Hills Ranch (formerly Salt Creek Ranch) Sectional Planning Area (SPA) Plan. State la' requires public agencies to adopt such programs to ensure effective implementation t f mitigation measures. Adoption of the resolution approves the proposed contract with LECON for a total of $49,936, to provide consulting services as the Environmental Moni or Specialist for the Rolling Hills Ranch SPA Plan Environmental Impact Report Nos. 8! ~-03 and 91-03, for a period of five years. (Director of Planning and Building) Staffrecommendation: Council adopt the resoh tion. ORAL COMMUNICATIONS Persons speaking during Oral Communication 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 Counbil from taking action on any issue not included on the agenda, but, if appropriaie, 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 p~blic hearings as required by law. If you wish to speak on any item, please filliout a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 7. CONSIDERATION OF THE FORMATI°N OF COMMUNITY FACILITIES DISTRICT NO. 07-I (OTAY RANCH VILLAGE ELEVEN) AND AUTHORIZATION TO LEVY SPECIAL TAXES AND TO INCUR A BONDED INDEBTEDNESS SECLPRED BY SUCH SPECIAL TAXES On September 16, 2003, Council approved the Resolution of Intention to form Community Facilities District No. 07-I (CFD 07-I) and the resolution of intention to incur a bonded indebtedness for CFD 07-I and set the public heating for October 21, 2003. CFD 07-I will fund the construction of public facilities, such as roadways for Otay Ranch Village Eleven. In addition, a portion of the proceeds may be used for certain lransportation enhancement projects, as directed by the City. Adoption of the resolutions continues the formal proceedings leading to the establishment of CFD 07-I and the authorization, subject to the approval of the qualified electors, to levy special taxes and to issue bonds secured by the levy of such special taxes. (Director of Engineering) Staff recommendation: Council continue the public heating to November 11, 2003. Page 3 - Council Agenda 10/21/2003 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. 8. CONSIDERATION OF AN AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT FOR THE ROLLING HILLS RANCH COMMUNITY Adoption of the resolution approves an amended and restated affordable housing agreement allowing McMillin Rolling Hills Ranch, LLC to satisfy their affordable housing obligation through either rental or for-sale housing. (Director of Community Development) Staffrecommendation: Council adopt the following resolution: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT RELATED TO ROLLING HILLS RANCH BETWEEN THE CITY AND MCMILLIN ROLLING HILLS RANCH, LLC, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT 9. CONSIDERATION OF ACCEPTANCE OF A REPORT REGARDING THE SAN MIGUEL RANCH EFFORTS TO SATISFY ITS AFFORDABLE HOUSING REQUIREMENTS BY PROCESSING AND CONSTRUCTING A 129-UNIT, FOR- SALE PROJECT The affordable housing agreement between the City and San Miguel Ranch allows for the development of either for-sale or rental to satisfy the affordable housing obligation. The developer has expressed a desire to build a for-sale project. (Director of Community Development) Staff recommendation: Council accept the report. ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 10. CITY MANAGER'S REPORTS 11. MAYOR'S REPORTS 12. COUNCIL COMMENTS Page 4 - CouncilAgenda 10/21/2003 CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph ~L Brown Act (Government Code 54957. 7). 13. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) · City of Chula Vista v. Otay Land Company, LLC, a Delaware Limited Liability Company, et al. (GIC796139-1) 14. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: San Diego Gas & Electric - Gas and Electricity Franchise (pertaining to public rights-of-way throughout the City of Chula Vista) City negotiators: David Rowlands, Jr., Sid Moms, Michael Meacham, Glen Googins Negotiating Parties: City of Chula Vista and San Diego Gas & Electric (various representatives) Under Negotiation: Price and terms of franchise conveyance 15. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) City of Chula Vista v. C & S Doctor, Inc. (SDSC No. GIC 787174) · C & S Doctor, Inc. v. City of Chula Vista (SDSC No. GIC 803780) ADJOURNMENT to the Regular Meeting of October 28, 2003, at 6:00 p.m. in the Council Chambers. Page 5 - CouncilAgenda 10/21/2003 CITY COUNCIL AGENDA STATEMENT Item o~ Meeting Date 10/21/03 ITEM TITLE: Ordinance establishing a 50 mph speed limit on Olympic Parkway between Brandywine Avenue and La Media Road, thereby amending Schedule X of a register maintained in the Office of the City Engineer. SUBMITTED BY: Director of Engineering~/~/ REVIEWED BY: City Manager id (4/Sths Vote: Yes No X ) Based on the provisions of the California Vehicle Code (CVC), and pursuant to authority under Chula Vista Municipal Code Section 10.48.020, titled "Established Speed Limits In Certain Zones", the City Engineer has determined that, in the interest of minimizing traffic hazards and for the promotion of public safety, the speed limit on Olympic Parkway between Brandywine Avenue and La Media Road be established at 50 mph. This speed limit will be added to Schedule X of the register maintained in the Office of the City Engineer. RECOMMENDATION: That the City Council adopt an ordinance establishing a 50 mph speed limit on Olympic Parkway between Brandywine Avenue and La Media Road, thereby amending Schedule X of a register maintained in the Office of the City Engineer. BOARDS/COMMISSIONS RECOMMENDATION: The Safety Commission, at theirmeetingof September 11, 2003, voted to concur with staff's recommendation to establish a 50 mph speed limit on Olympic Parkway between Brandywine Avenue and La Media Road. DISCUSSION: Based on CVC 22358 (Decrease of Local Speed Limits), whenever a local authority determines upon the basis of an Engineering and Traffic Survey that the State maximum speed limit of 65 mph is more than is reasonable or safe upon any portion on any street other than a state highway, the local authority may by ordinance determine and declare a prima facie speed limit which is reasonable, safe and appropriate to facilitate the orderly movement of traffic on the roadway. Therefore, this declared prima facie speed limit becomes effective when appropriate signs giving notice thereof are erected upon the street. On May 28, 2003, staff completed an Engineering and Traffic Survey for the recently constructed segment of Olympic Parkway between Brandywine Avenue and La Media Road. This portion of Olympic Parkway is a 6-lane Prime Arterial roadway that varies in width from 94' to 104' wide curb-to-curb with a 16' wide raised median island separating the two directions of travel. The segment is 2.74 miles long, and parking is prohibited along both sides of the roadway. Olympic Parkway has an Average Daily Traffic of 28,600 (year 2003 count). The accident rate for this 2-! Page 2, Item ~ Meeting Date 10/21/03 segment is 0.221 per million vehicles miles, which is lower than the average rate of 2.40 for similar highways in the State of California. According to the Engineering and Traffic Survey, the 85th percentile speed was determined to be 53 mph between Brandywine Avenue and Heritage Road and 51 mph between Heritage Road and La Media Road. Normally, speed limits should be established at or below the 85th percentile speed in increments of 5 mph. The 85th pementile speed is defined as the speed at or below which 85 pement of the traffic is moving. However, in considering existing conditions with the traffic safety needs of the community, or where unusual conditions exist which are not readily apparent to drivers, speed limits of more than 5 mph below the 85th percentile may be warranted. The establishment ora speed limit of more than 5 mph below the 85th percentile speed should be done with great care as this may cause a disproportionate number of the reasonable majority of drivers to be in violation of the established speed limit. In determining the speed limit that is reasonable, safe and most appropriate to facilitate the orderly movement of traffic, important factors to be considered are prevailing speeds, unexpected conditions, and accident records. Speed limits set at or slightly below the 85th percentile speed provide law enforcement officers with a means of controlling the drivers who will not conform to what the majority considers reasonable and prudent. Conclusion: Upon completion of the Engineering and Traffic Survey, and based on the 85th percentile speeds on Olympic Parkway, staff has determined that a 50 mph speed limit would be appropriate for the subject segment. Therefore, in accordance with CVC Sections 22357 and 22358, which authorize local authorities to establish prima facie speed limits on streets under their jurisdiction, staff is recommending that a 50 mph speed limit be established for Olympic Parkway between Brandywine Avenue and La Media Road. Upon approval of the proposed speed limit by City Council, Schedule X of the register maintained in the Office of the City Engineer will be revised to include the following information: SCHEDULE X - ESTABLISH SPEED LIMITS IN CERTAIN AREAS Name of Street Beginning At Ending At Proposed Speed Lirmt' Olympic Parkway Brandywine Avenue La Media Road 50 MPH Thereafter, speed limit signs will be installed along this portion of the roadway giving notice of the 50 mph speed limit. FISCAL IMPACT: The cost to install signs and pavement legends is approximately $4400 which is included in the operating budget. Attachment: Engineering and Traffic Survey Aerial Photo J:\Engineer~AGENDA\Olympic 50 mph A 113.sm.doc SPEED LIMIT - ENGINEERING/TRAFFIC SURVEY STREET: Olympic Parkway LIMITS: Brandywine Avenue to La Media Road Length of Segment (it): 14,490.83' (2.74 miles) Existing Posted Limit (mph): 40 mph (Construction Zone) SUMMARY OF SPEED SURVEYS Segment: Brandywine Ave. to Heritage Rd. Heritage Rd. to La Media Rd. Date Taken: 5 / 28 / 2003 5 / 28 / 2003 No. of Vehicles on Sample (cars): ! 00 100 85th Percentile (mph): 53 mph 51 mph Range of Speeds Recorded (mph): 34 - 59 mph 33 - 63 mph ROADWAY CHARACTERISTICS Width (ft): Varies fi.om 94' - 104' with a raised median of 4' - 16' Total No. of Lanes: 6 lanes (3 per direction) Horizontal Alignment: Minimum radius of 2,000' Vertical Alignment: Less than 2% ~rade TRAFFIC CHARACTERISTICS Average Daily Traffic: 28,600 (2003) On-Street Parking: Prohibited Special Conditions: Bike lane on both sides, future site of Ota¥ Ranch High School on south side between Heritage Road and La Media Road. Accident History: The accident rate at this sediment is 0.221 per million vehicle miles which is lower than the average rate 0£2.40 for similar highways in the State of California. SURVEY RESULTS Study was Prepared by: Leia B. Cabrera ~ Date: 5/28/2003 ; Recommendation: Establish speed limit of 50 mph ff ~ :~ Date Recommendation Approved: ~$'?/4t/'~.~ ~-°1~ ~05~ 104 ~<l~ll By: M~jetfA1-Ghafrv, P.E., T.E. ~ ~q~/_~j.~]]~ Approved Speed Limit (mph): 50 MPH v.x~.. / ~ Per CVC 40803, Survey Expires: 5/28/2010 J:\Engineer~TRAFFIC~ENGINEERING & TRAFFIC SURVEYS~Speed Limit Surveys\Olympic (Brandywine - La Media).doc ORDINANCE NO. ORDiNANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHiNG A 50 M.P.H. SPEED LIMIT ON OLYMPIC PARKWAY BETWEEN BRANDYWINE AVENUE AND LA MEDIA ROAD, THEREBY AMENDING SCHEDULE X OF A REGISTER MAiNTAiNED iN THE OFFICE OF THE CITY ENGINEER. WHEREAS, based on the provisions of Division 11-Chapter 7-Article 1 (Sections 22348 through 22366) and Division 17-Chapter 3-Article 1 (Sections 40800 thru 40808) of the California Vehicle Code (CVC), and pursuant to authority under Chula Vista Municipal Code Section 10.48.020, titled "Established Speed Limits In Certain Zones," the City Engineer has determined that, in the interest of minimizing traffic hazards and for the promotion of public safety, the speed limit on Olympic Parkway between Brandywine Avenue and La Media Road be established at 50 MPH; and WHEREAS, this speed limit will be added to Schedule X of the register maintained in the Office of the City Engineer; and WHEREAS, speed limit signs will be installed along this portion of the roadway giving notice of the 50 mph speed limit. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain as follows: SECTION I: A 50 mph speed limit is hereby established on Olympic Parkway between Brandywine Avenue and La Media Road: SECTION II: Schedule X of a Register of Schedules maintained by the City Engineer as provided in Section 10.48.020 of the Chula Vista Municipal Code, Established Speed Limits in Certain Zones - Designated, is hereby amended to include the following information: Chula Vista Municipal Code Section 10.48.020 - SCHEDULE X ESTABLISHED SPEED LIMITS IN CERTAIN ZONES Proposed Name of Street Be~innin~ At Ending At Speed Limit Olympic Parkway Brandywine La Media Road 50 MPH Avenue Ordinance Page 2 SECTION III: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by Clifford Swanson e '"' ta~ Director of Engineering J:Attomey\Ordinanc¢\Olympic Parkway speed limit COUNCIL AGENDA STATEMENT Item ,~ Meeting Date 10/21/03 ITEM TITLE: Resolution Accepting bids and awarding Contract for the "Traffic Signal Modification at the Intersection of Fourth Avenue and Orange Avenue" project in the City of Chula Vista, CA (TF-309) SUBMITTED BY: Director of Engineering~ REVIEWED BY: City Manager~z,~rt 0c'/~,r' (4/Sths Vote: Yes __ No X J At 2:00 p.m. on September 17, 2003, the Director of Engineering received three (3) sealed bids for the "Traffic Signal Modification at the Intersection of Fourth Avenue and Orange Avenue" project in the City of Chula Vista, CA (TF-309). HMS Construction, Inc. submitted the low bid of$25,110.00 to complete said project. RECOMMENDATION: That Council Accept Bids and Award the Contract for the "Traffic Signal Modification at the Intersection of Fourth Avenue and Orange Avenue" project in the City of Chula Vista, CA (TF-309) to HMS Construction, Inc. in the amount of $25,110.00 BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In February 2002, the City submitted six (6) applications to the California Department of Transportation (CalTrans) for Fiscal Year (FY) 2003-2004 Hazard Elimination Safety (HES) program under Council Resolution 2002-036. Staff selected the traffic signal modification at the subject intersection as one of the proposed six projects to be submitted to CalTrans for this HES funding. This specific signal modification was one of the few projects selected for CalTrans funding through the HES program. Upon receiving approval from CalTrans, the City prepared a CIP account for this project to fund all initial installation costs. The funding was initially encumbered from the Traffic Signal Fund. After completion of the project, CalTrans will reimburse a maximum of 90% of the project costs, which will be returned to the Traffic Signal Fund. This traffic signal modification is intended to improve traffic safety at the subject intersection by providing protected left-tm movements at all approaches to the intersection. Also, replacing defective traffic signal detectors will allow detection-actuated traffic signals to work more efficiently, thereby reducing delays for motorists wishing to travel through this intersection. The work to be done for the signal modification includes the installation of protected left-turn vehicle indications for all approaches to the intersection, rewiring the traffic signal system, installation of video camera detection systems (to replace loop detectors along the Fourth Avenue approaches to the intersection), traffic control, restoration of existing improvements and the Page 2, Item Meeting Date 10/21/03 construction of all appurtenances and other miscellaneous work necessary to make the traffic signal system complete and operational. Bidding Process Traffic engineering staff recently prepared plans and specifications for this project. Staff also prepared a construction cost estimate of $25,600.00 using average unit prices of recently received bids from contractors on similar types of projects. On September 17, 2003, staff received bids from the following contractors: I[ ~;-~ Contractor [ BidAmount i ~__~S Cons ruction, Inc. - San Marcos, CA ~_ $25,110.0-~ ~2~C-E E 1 e c ~5 ~'"~ '~-~-1~,~- ...... / * Incomplete Bid The low bid, submitted by HMS Construction, Inc., is below the final engineer's estimate of $25,600.00 by $490.00 or approximately 2%. The Contractor has completed recent projects in the City with favorable performances. Disclosure Statement Attached is a copy of the contractor's Disclosure Statement. Environmental Status The work involved in this project is exempt under Section 15301, Class lc of the California Environmental Quality Act (Minor Alterations of Existing Public Improvements or Public Structures). FISCAL IMPACT: FUNDS REQUIRED FOR CONSTRUCTION ....l.. FUNDS AVAILABLE FOR CONSTRUCTION A. Traffic Signal Fund $40,000.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $40,000.00 ' Page 3, Item ~ Meeting Date 10/21/03 Completion of construction for this project will incur minimal changes to annual energy costs and reduce future maintenance costs. After completion and review by CalTrans, the City will receive a cash reimbursement of up to $27,000 for the traffic signal modification. The original project was budgeted for $90,000 to fund the subject traffic signal modification and to purchase a new traffic collision database software (See the attached C1P Detail Sheet for this project). The remaining funds will be utilized for that purchase. Attachments: Contractor's Disclosure Statement Capital Improvements Program Detail Sheet JSEngineer~AGENDA\TF309-A 113.doc :- -:.i:~-~' THE CITY OF CHIILA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters which will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chuta Vista election must be filed The followin~ information must be disclosed: ' List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, and material supplier. ' ~ 2. If any person* identified pursuant to (1) above is a corporation or partnemhip, list the names of all individuals with a $2000 inv[stment in the business (corporation/partnership) entity. 3. If any person* identified pursuant to (1) above is a non-profit organization or mst, list the names of any person serving as dlirector of the non-profit organization or as trustee or beneficiary or trustor of the trust. [~0~' - 4. Please identi~ every person, including an3' agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. Has any person* associated with th. is contracl had any financial dealinc, s with an official**~he City of Chula Vista as it relates to Lhis contract withi~ the past 12 months? Yes No ~ I If Yes, briefly describe the nature of the fiy~rp~terest tl{e official** may have in this contract. I 6. Have you made a contribution of more than $250 within the past (12) to a current twelve months member of the Chula Vista City Council? Yes No ~ Yes, which Council member? I 7. Have you provided more than $340 (or an item of equivalent value) to an official** of the City of Chula Vista in the past twelve (12) months? (This incl~t~s beim, a source of income, money to ~ retire a legal debt, ~ifl:. loan, etc.) Yes No V If Y.~. which officialr* and what was ! ~ithe nature O£ item prOxlided? ~ v Si~ature of~7ontractor/~pplicant i · Print or type name of Contrac{or/Applicant · ed as: any individual, firm. co-parmership, joint venture, association, social club. I corporation, estate· trust, receiver, s.vndicate, an), other county, city, fraternal organization, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. · * Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. RESOLUTION NO. 2003- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE "TRAFFIC SIGNAL MODIFICATION AT THE INTERSECTION OF FOURTH AVENUE AND ORANGE AVENUE" PROJECT IN THE CITY OF CHULA VISTA, CA (TF-309) WHEREAS, on September 17, 2003, the Director of Engineering received the following three (3) sealed bids for the "Traffic Signal Modification at the Intersection of Fourth Avenue and Orange Avenue" project in the City of Chula Vista. CA (TF-309): Contractor Bid Amount HMS Construction, Inc. $25,110.00 ACE Electric $27,586.00 Moore Electrical $51,884.00 WHEREAS, HMS Construction, Inc., submitted the low bid of $25,110.00 to complete said project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept bids and awards the contract for the "Traffic Signal Modification at the Intersection of Fourth Avenue and Orange Avenue" project to the City of Chula Vista, CA (TF-309) to HMS Construction, Inc. in the amount of $25,110.00. Presented by Approved as to form by Clifford Swanson Ann Moore / / Director of Engineering City Attornel¢ J:\attomcy\~eso\Traffic Signal Mod. Fourth & Orange COUNCIL AGENDA STATEMENT Item:/J~'~f Meeting Date: 10/7/03 ITEM TITLE: Resolution of the City Council of the City of Chula Vista approving the proposal to name the Otay Ranch Village Six Neighborhood Park "Santa Venetia Park". SUBMITTED BY: Acting Director of Planning and Building~ Director of General Services ~j~. _ \\ Director of PublicWorJ pera ns7 Director of Recreatio .~/5~ REVIEWED BY: y txaanager~j~ On May 27, 2003, the City Council approved the Master Plan for the Village Six Neighborhood Park. In order to establish a stronger village identity, City staff, the Otay Ranch Company and 'the McMillin Company have agreed to name the Village Six Neighborhood Park "Santa Venetia Park." Santa Venetia is one of the promenade streets that both of the developers of Village Six (Otay Ranch Company and McMillin Company) share in common. RECOMMENDATION: That the City Council approve the naming of the Village Six Neighborhood Park Santa Venetia Park. BOARDS/COMMISSIONSRECOMMENDATION: On Jane 19, 2003, the Parks and Recreation Commission voted (5-0-0-2) recommending that the Village Six Neighborhood Park be named Santa Venetia Park instead of Magdalena Park, as was their previous recormnendation on April 17, 2003. DISCUSSION: Background One of the City Council's five strategic themes for furore growth and development in the City is: Connected, Balanced and Cohesive Community: Foster a positive and shared community identity; encourage and value public participation; improve citywide mobility; and promote a balanced mix of housing, shopping, and employment opportunities. To implement the Council's strategy, staff believes that a common village name for Village Six and its major facilities will comribnte to a shared community identity. Based on that theme and strategy, staff has worked with the Otay Ranch Company and McMillin Company to name Village Six "Santa Venetia." To further implement this strategy, staff and the developers 4-/ Page 2, Item: Meeting Date: 10/7/03 believe that the Neighborhood Park and Elementary School should also share the same name. In addition, the introduction to the Village Six Sectional Planning Area (SPA) Plan states that: "The Otay Ranch General Development Plan identifies the "village" as a fundamental concept for the development of Otay Ranch. The "village" is the "building block" for shaping the character and success of the community." (Village Six SPA, pg. II.2.1-9) A common identity for the village can also be a building block for shaping the character and success of the community. Proposal By mutual agreement between City staff, the Otay Ranch Company and the McMillin Company, the name "Santa Venetia" was chosen. Santa Venetia is one of the promenade streets that the two developers of Village Six share in common. In addition, the streets within Otay Ranch Villages' One, Five and Six are predominately named after cities and communities in California (Santa Venetia is a small community in Marin County north of San Francisco). Of note, the Otay Ranch Company is marketing their portion of Village Six as "Hillsborough," while the McMillin Company is marketing their portion of Village Six as "McMillin Lomas Verdes,' continuing their marketing name from Village One and Five. Both of the developers have agreed to the common name of"Santa Venetia" and have reflected this name in their respective signage (Attachments 2, 3, 4 & 5). To establish a stronger sense of community, staff is proposing that the neighborhood park be named "Santa Venetia Park" in keeping with the future permanent name for Village Six. Staff will also recommend to the Chula Vista Elementary School District that the Village Six elementary school be named "Santa Venetia Elementary School." CONCLUSION: Staff believes that a shared name for major facilities such as parks and schools in Village Six is one of the best methods to encourage a common community identity and sense of community. Therefore, staff recommends that the Village Six Neighborhood Park be renamed "Santa Venetia Park." FISCAL IMPACT: There are no fiscal impacts from changing the park name. The preparation of this report is covered under the developer's existing deposit accounts. ATTACHMENTS: 1. Minutes o£the June 19 2003 Parks and Recreation Commission Meeting 2. Example of Monument Sign with Temporary Marketing Name and Village Name: Ihe Otay Ranch Company 3. Example of Monument Sign with Permanent Village Name: The Otay Ranch Company 4. Example of Monument Sign with Temporary Marketing Name and Village Name: The McMillin Company 5. Example of Monument Sign with Permanent Village Name: The McMillin Company J:\Plan ning\HAROLD\VCParkNameCCRepor t. DOC of Chu o Vista /DT / Parks and Recreation Commission Mlnutes Thursday ~ 6:30 p.m. June 19, 2003 Public Works Center 1800 Maxwell Rd Meeting called to order by Vice Chair, Don Salcido at 6:31 p.m. Staff Present: Buck Martin, Director of Recreation Dave Byers, Director af Public Works Operations Andy Campbell, Director of Building and Par~ Construction Jack Griffin, Asst. Director of Building and Parks Construction Mary Hofmockel, Principal Landscape Architect Joe Gamble, Landscape Planner II Martin Miller, Associate Planner Duane Bazzel, Principal Planner Larry Eliason, Parks and Open Space Manager Ed Hall, Principal Recreation Manager Ted Nelson, Recreatian Supervisor III Margarita Cellano, Recording Secretary Guests: Peter Watry, Crossroads II, Representative John Narman, Brookfield Shea John Moore, Brookfield Shea Glen Schmidt, Schmidt Design Group Peggy Gentry, Chapin Land Management, Inc. 1. Roll Call/Motion to Excuse Members Present: Commissioner Rude, Commissioner Salcido, Commissioner Weidner (arrived at 6:38 p.m.), Commissioner Strahl, and Commissioner Rias Members Absent: Commissioner Ramos, Chair Perondi MSC (Salcido/Rios} to excuse Commissioner Ramas and Chair Perondi from tonight's meeting. 2. Public Comments - 3. Action Items a. Minutes of April 9, 2003 Special Meeting - MSC (Rude/Rios) (Vote 4-0-0-2) to approve the minutes as presented. b. Minutes of May 15, 2003 - Move to meeting of July 17, 2003 c, Otay Ranch Neighborhood Park - Village 11 - Mr. Joe Gamble {Landscape Planner II) talked briefly about the Neighborhaod Park in Village 11, and introduced Mr. Glen Schmidt of Schmidt Design Group. Mr. Schmidt stated that this park site is in Village 11, and is the only public neighborhood park within the Village, and its location is consistent with the central facus theme associated with the neo-traditional concept. The park is 7 acres north and east of the intersection Windingwalk Street and Exploration Parks and Recreation Commission June 19, 2003 Page 2 Falls Drive. West of the park is the future Village 11 Elementary School site. San Diego Gas & Electric and San Diego County Water Authority easement is east of the park site, and also serves as an open space backdrop for the park site. To the north of the park site and a multi-family project, which elevated approximately 10 - 20 feet higher than the park, and single-family residences are proposed to be located south of Windingwalk Street and the park. Mr. Schmidt discussed the recreation programming elements that include: softball field with overlaid multi-purpose area that is suitable for soccer activity, children's play area, picnic facilities, basketball court (lighted), tennis court (lighted, budget permitting), skate component, pedestrian wallcways and paths, comfort station, on-site parking, and pedestrian and security lighting. Mr. SchmJdt discussed the design theme of the park that includes a ranch theme, and stated that the park is multi-tiered. In addition, architectural elements in the park are based on the design principles of Irving Gill, who is a tamed San Diego architect. Commissioner Sfrahl asked if dog-waste stations were an element of the park. Mr. OambJe (Landscape Planner II) responded that dog-waste stations are a standard park component. Commissioner Rios asked why the San Diego Gas & Electric easement was not being used at this park. Mr. Gamble (Landscape Planner II) responded that San Diego Gas & Electric was not open to include active recreation on the easement. Commissioner Weidner asked how much space is altotfed for swings, and how many swings will be available. Mr. Schmidt responded that 2 sets of swings are available; (1) 4-seat swing in the school age play area, and a 4-seat swing in the tot-area. Commissioner Weidner stated that the trellises do not look wide enough for useable shade for park patrons, and asked about the size of the multi- purpose field for soccer play. Mr. Schmidt responded that the trellises could be expanded, and stated that the multipurpose field meels the city's requirements for soccer field, and is multifunctional. Commissioner Salcido asked about the pitch of the field, drainage of the field, and adequate lighting for the field (not for professional use). Mr. Schmidt responded that the pitch is 2% and the drainage is across the field. Ms. Hofmockel (Principal Landscape Architect) responded that the lighting issue would be addressed at the July meeting, since staff was researching acceptable levels of lighting for certain types of play. Discussion held on the suggested name of lhe park, "Windingwalk Park". Parks and Recreation Commission June 19, 2003 Page M$C (Rios/Strahl} (Vote: $-0-0-2 I~erondi and Ramos absent) to approve the Master Plan for the Neighborhood Park Jn Village 11 and recommend Jt to the City Council. M$C (Rude/Rios) (Vote: 5-0-0-2 Perondl and Ramos absent) to approve the park name for the neighborhood park In Village 11 as Wlndingwalk Park. d. Greenbelt Master Plan - Mr. Duane Bazzel (Principal Planner) briefly discussed the proposed Greenbelt Master Plan. Mr. Bazzel reviewed and discussed the key issues raised af public workshops. In addition, Mr. Bazzel stated that the concerns raised (by the public, Parks and Recreation Commission, and the Planning Commission) were focused in five areas that include: Connectivity; Clarify Mapping & Text; Public Participation; Implementation Chapter, and Greenbelt Focus. Mr. Bazzel also distributed a copy of the Greenbelt Master Plan Meeting Schedule. Mr. Bazzel also stated that he attended the Environmental and Open Space Committee of the General Plan Update (made up of Resource Conservation Commission plus additional environmental representatives from the larger San Diego community). Their issues included: strengthening comments in the document regarding the open space program that make up the open space walk within the Greenbelt system. Comments were made regarding the flood channel, and the desire to work with government agencies to restore the area where if is currently concrete (beyond Chula Vista control). In addition, Mr. Bazzel stated that they expressed support for the plan with focus on the frails, and connection fo the park systems. Mr. Bazzel stated fhaf at the May 28, 2003 Planning Commission meeting, concerns raised included: Home Owners Association Fees, maintenance costs to the City (incase of a catastrophic event) for the frail system, patrolling the open space system, and safety lin the Ota¥ Valley area}. Commissioner Salcido asked about the southwest section of the Greenbelt Plan, and asked whether this area would be developed or left as an open space area, and asked about connecting both north and south through mid- bayfront area. Mr. Bazzel responded that the Sweeiwafer Marsh is a protected wildlife refuge, and development would not take place. There are existing nesting of birds currently. In addition, there is a joint Master Planning effort with Port District area (by J Street}, to connect both sections to ensure there is a connected trail system. They are concerned about where open space trails will be placed; in addition, they have concerns related to having maximum flexibility with the Master Plan. The City is going to ensure that there is connected trail system through the area, and have appropriate open space links with the interface with the bay. The ultimate land-use is unknown at this time. Discussion held on signage throughout the system. Commissioner Strahl commented that he is concerned about how the Greenbelt will be maintained or what will happen after if is approved by the City Council. Parks and Recreation Commission June 19, 2003 Page 4 Mr. Peter Watry stated that he is pleased that the Commission did not take action on the Greenbelt Master Plan on May 15, 2003, and waited to receive additional information from the public and Planni~lg Commission. Mr. Watry also thanked the Commission for their efforts on the Greenbelt. MSC (Rios/Strahl) (Vote: 4-0-1-2 with Perondi and Ramos absent and Weidner abstained because she was not at the ,5/15/03 meeting when substantial discussion took place about the Greenbelt Master Plan) to recommend to the City Council to adopt and approve the Greenbelt Master Plan, and request that Mr. Bazzel return on July 17, 2003 and discuss any substantial changes to the Master Plan that he received subsequent, and place this item on the agenda as an action item. e. Renaming the Village Six Neighborhood Park from Magdalena Park to Santa Venetia Park - Mr. Miller (Associate Planner) informed the Commission that the City Council, held workshops to develop strategic themes. One of the themes is: Connected, Balanced and Cohesive Community, and the strategy is to "Foster a positive and shared community identity; encourage and value public participation; improve citywJde mobility; and promote a balanced mix of housing, shopping and employment opportunities." Mr. Miller stated that this strategy was established in part, due to the difficulties caused by the split in ownership in Village Five and the a lack of common community identity. Furthermore, Mr. Miller informed the Commission that in order to accommodate and implement Council's strategy, staff met with the Olay Ranch Company and the McMillin Company and the name Santa Venetia was chosen. Santa Venetia is one of the promenade streets that both Olay Ranch Company and McMillin share in common. To establish more of a sense of community, staff proposed that the neighborhood park be named "Santa Venetia Park" in keeping with the village name. in addition, staff will also recommend to the Chula Vista Elementary School District that the elementary school be named Santa Venetia Elementary School. Mr. Miller stated that staff concluded that one of the best methods to encourage a common community identity and sense of community is to use a shared name for Village Six and its major facilities such as parks and schools. MSC (Strahl/Rude) (Vote: 5-0-0-2 with Ramos and Perondl absent) to recommend to the City Council that the Village Six Neighborhood Park be renamed from Magdalena Park to Santa Venetia Park. 4. Information Items a. Year-End Parks and Recreation Commission Report to the City Council - Mr. Martin (Director of Recreation) briefly discussed the Commission's year-end report. Chair Perondi will be asked to sign-off on the report. b. DRAFT - Rohr Park Report to City Council - Mr. Martin (Director of Recreation) briefly talked about the report that is being submitted to the City Council for consideration at their July 8, 2003 meeting. Commissioner Strahl stated that he would be attending that meeting. Parks and Recreation Commission June 19, 2003 Page $ c. Historical Bell - Mr. Byers (Director of Public Works Operations) informed the Commission that a proposal to place the City's Historical Bell in Memorial Park was received. Mr. Byers explained that the bell was removed from Chula Vista and sent to Yucaipa, CA. County Supervisor, Greg Cox, purchased a replacement bell for Yucaipa, CA in exchange for the City's Historical Bell. Furthermore, Mr. Byers stated that the plan is to place the bell in Memorial Park near the Hedtage museum. Exact location is still undecided. d. 3-Acrea Parcel Adjacent to Rohr Park - Mr. Marlin (Director of Recreation) stated that this item would be placed on the July agenda. e. Otay Valley Regional Park Concept- Ms. Hofmockel (Principal Landscape Architect) provided a copy of the park concept for review and information purposes. 5. Unfinished Business - None 6. New Business - None 7. Written Communications - None 8. Commission Comments - a, Commissioner Rude is attending the town-hail meeting on 6/21/03 at Bonita Vista High School. b. Commissioner Strahl stated that cars were towed from the parking lot from the Chula Vista Golf Course, and stated that the Golf Course handled this in a very unprofessional manner. In addition, Commissioner Strahl stated that the Golf Course should have handled this issue differently, and asked that staff report in July as fo what the outcome of this issue is, and status. Proper signage should be placed, and wanted to go on record as this being an outrage, and disgusting. c. Commissioner Weidner stated that she received praising for programming at Heritage Park Center, and stated that the registration was easy. In addition, was surprised to see that some classes were not being offered again this session. d. Vice-Chair Salcido stated that the Public Works Center is an ideal place to hold Parks and Recreation Commission meetings, and would like to request that a change in meeting venue be researched and return back in July with this information. 9. Staff Comments - a. Recreation Monthly Report - Mr. Martin (Director of Recreation) briefly discussed the monthly report. b. Mr. Byers (Director of Public Works Operafions] repoded that he and a group of staff visited recreation and park facilities in San Diego. One of the venues that was visited was the Joan Croc Center. I0. Other - None Meeting adjourned at 8:38 p.m. fo the next meeting of July 17, 2003 fo be held in the Mercy Conference Room. Submitted by: Margarita Cellano Recording Secretary ~ ' ,~ 7' 1-tZ ,,0- ,9 -T- .9 - ~9 ¥ RESOLUTION NO. 2003 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PROPOSAL TO NAME THE OTAY RANCH VILLAGE SIX NEIGH]5ORHOOD PARK SANTA VENETIA PARK WHEREAS, in January of 2002, the City Council approved the Sectional Planning Area (SPA) for Village Six in the Otay Ranch; and WHEREAS, the Village Six SPA contains provisions for 2,232 residential dwelling units, including two community purpose facility sites, two school sites, a mixed-use commercial site, and a seven-acre neighborhood park; and WHEREAS, on May 27, 2003, the City Council approved the Master Plan for the Village Six Neighborhood Park; and WHEREAS, in order to establish a stronger village identity, City staff, the Otay Ranch Company and the McMillin Company have agreed to name the Village Six Neighborhood Park Santa Venetia Park; and WHEREAS, on June 19, 2003, the Parks and Recreation Commission voted (5-0-0-2) recommending to the City Council that the Village Six Neighborhood Park be named Santa Venetia Park. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the naming of the Village Six Neighborhood Park Santa Venetia Park. Presented by: Approved as to form by: Jim Sandoval Ann Moore Acting Director of Planning and Building City Attorney COUNCIL AGENDA STATEMENT Item: ~ Meeting Date: ~ ITEM TITLE: Resolution of the City Council of the City of Chula Vista approving a first amendment to a three-party agreement between the City of Chula Vista; RECON, Consultant; and Otay Project, L.P., Applicant for consulting services related to the preparation of an Environmental Impact Report (EIR) and authorizing the Mayor to execut.e~d amendment. SUBMITTED BY: Acting Director of Planning and Buildin$~ REVIEWED BY: City Manager ~/4~9~ (4/5tbs Vote: Yes _ No X. ) The item before the City Council is a request to approve the first amendment to the three party agreement with Recon for consulting services relating to the Village Two, Three, Planning Area 18b, and Portions of Villages Four and Seven (hereinafter referred to as the Projec0 Environmental Impact Report for an amount not to exceed $244,300 increasing the total maximum agreement amount from $218,458 to $462,758. RECOMMENDATION: That the City Council adopt a resolution approving the first amendment to the three-party agreement between the City of Chula Vista; RECON, Consultant; and Otay Project, L.P., Applicant, for environmental consulting services related to the preparation of a Second-Tier EIR, for Otay Ranch Village Two and authorizing the Mayor to execute said agreement. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: The Applicant, Otay Project, L.P. has filed a SPA Plan and Tentative Tract Map application for the Project site. The proposed 1,200 acre site is located east and west of Heritage Road, south of the approved Olympic Parkway alignment, and west of the proposed alignment for La Media. As required by the Otay Ranch General Development Plan (GDP), a SPA Plan is proposed. The SPA Plan is currently being processed by the City and includes all SPA-level documents (such as planned community district regulations, a village design plan, public facilities financing and phasing plan, development agreement, and other related documents). A Tentative Tract Map is also being processed with the SPA Plan and is also being addressed in the EIR. Page 2, Item No.: 5 Meeting Date: 10/21/0~ Pursuant to the California Environmental Quality (CEQA), the Environmental Review Coordinator previously determined that the proposed project requires the preparation of an Environmental Impact Report. Planning and Building Department staff does not have the available time or expertise to prepare the needed Environmental Impact Report. Therefore, the City and the project applicant have entered into a three-party agreement for the preparation of the CEQA documentation. R~npe-nf-Wnrk RECON has been functioning as the Environmental Consultant to the City of Chula Vista under a three-party agreement approved by the City Council on February 26, 2002 with the Applicant and under the supervision of the City's Environmental Review Coordinator. The responsibilities of the Environmental Consultant include the following: · Review of the available Project information; · Preparation of an Initial Study and Notice of Preparation; · Preparation of Screencheck, draft and final EIRs; Preparation of responses to comments received during public review; Preparation of Findings and the Mitigation Monitoring Reporting Program; Attendance at team meetings and public hearings; and Preparation of a tentative map environmental document. The Village Two, Three, and Planning Area 18b SPA plan now includes two project alternatives in addition to the applicant's preferred project plan. The inclusion of Project Alternatives "A" and "B" necessitates additional environmental analysis on the part of RECON, as well as their Traffic subconsultant Lindscott, Law, and Greenspan (LLG). Alternatives "A" and "B" will be analyzed at the full project level in the Environmental Impact Report, thus, necessitating expanded environmental review. The proposed first amendment to the three-party agreement includes an additional $244,300 for RECON, of which, $81,255 is for additional services performed by LLG. The project EIR will look at the full range of potential environmental impacts associated with all three project level altematives. A total of sixteen traffic scenarios will be considered by LLG in their analysis of the project. The traffic impact report will consider the direct and cumulative traffic impacts associated with the project and the two project alternatives. The traffic impact report will also address anticipated amendments to the Otay Ranch General Development Plan and City of Chula Vista General Plan as these amendments relate to project traffic circulation impacts. In addition, sub-consultant Environ will complete a landfill study assessing potential human health risk. The applicant's proposed placement of residential uses within the required 1,000 foot buffer area surrounding the Otay Landfill necessitates expert analysis. Environ will serve as a sub-consultant to RECON and will provide analyses related to potential health impacts associated with Page 3, ItemNo.: ~ Meeting Date: ~ development within the landfill buffer area. Environ will provide analyses related to air quality impacts, landfill gas migration, and health risks associated with residential development in proximity to the Otay Landfill. The cost of Environ's services would not exceed $75,000 (this cost figure has been factored into the $244,300 noted above). RECON will have contracts with the City with a combined total of approximately 1.5 million dollars within the upcoming 12 months. RECON is currently working on a variety of projects including the General Plan EIR, biological studies related to the Multiple Species Conservation Plan (MSCP), mitigation monitoring for Eastlake III and San Miguel Ranch, as well as mitigation monitoring for the Salt Creek Sewer project. Contract Pa?nent: The amount for this three-party agreement is $578,447 which includes a 25% contingency of $115,689 for additional services if determined necessary by staff, and agreed to by the project applicant. The project applicant will pay all consultant costs, as well as reimburse any City staff time associated with preparation of the Otay Ranch Village Two EIR through a separate deposit account. The applicant is in agreement with the expanded scope of work and the additional fee. FISCAL IMPACT: There would be no impact to the General Fund. The project applicant, Otay Project, L.P., through a deposit account, will pay RECON's consulting fees. The contract amount for consulting services is $462,758. The contract allows the Contract Administrator, subject to approval of the applicant, to negotiate additional fees not to exceed 25% of the total contract amount ($115,689) to cover unforeseen issues that may be identified during the preparation of the EIR. Attachment~ 1. Original Three-party Agreement 2. Amendment to Three-Party Agreement - "Exhibit A- 1" (strikeout and underline) JSPlanning~stevekenvirmental\\Village 2~ECON Al 13 Village 2.doc Three-Party Agreement Between City of Chula Vista, RECON Environmental Incorporated, Consultant, and Otay Project L.P., Applicant For Consulting Work to be Rendered with regard to Applicants' Project 1. Parties. This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the attached Exhibit A as "Consultant", RECON Environmental Incorporated (herein after referred to as "RECON") whose business form and address are indicated on the attached Exhibit A, and the persons collectively designated on the attached Exhibit A as "Applicant", Otay Project L.P. whose business forms and addresses are indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations. 2.1. Warrant~ o f Ownershjt/. Applicant wan:ants that Applicant is the owner of land ("Property") commonly lmown 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 plau, 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" staffor resources to process the application within the time frame requested for review by the Applicant. 2.:~. I his agreement proposes an m:mngemcnt by which Applicm]t shall retain, and be liable for the costs of retaining, Consultant, who shall perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. 2/I 9/02 Tluee Party Agreement Page I 2.6. Additional facts and circumstances regarding the background forths agreement are set forth on Exhibit B. 3. A~oreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: 3.1. Employment of Consultant by Applicant. Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled "General Nature of Consulting Services", ("General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 5, entitled "Detailed Scope of Work", ("Detailed Services"), and all services 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 oftiine for the diligent execution of Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perfom~ said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation_ _of Cqns_u!~ant. 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 2/! 9/02 Three Paily Agreeinent Page 2 checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay sa/d anaount 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 fi.om 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 fi.om 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 perforated by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Payment of Compensation by Applicant. 3.3.1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.l 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. 2/19/02 Tltree-Party Agreement Page 3 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for,'Trust purposes City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this Agreement and any claims resulting therefrom. 3.3.1.1.4. Applicant shall be notified within 30 days after of the use of the Deposit in any manner. Nothing herein shall invalidate use of the Deposit in the manner herein authorized. 3.3.l.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. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and 2/19/02 Three-Party Agreement Page 4 Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("PrLmary Coverage"), and which treats the emPloyees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). 4.1.3: Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coverage. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of sen, ices 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 xvritten 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 wlfich 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. Docum~_nt~ p~.c_cess. 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. 2/19/02 Three-Party Agreement Page 5 5.2. Property Access. The Applicant hereby grants permission to thc 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 Appiicant. Consultant shall promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless fi'om all loss, cost, damage, expenses, claims, and liabilities in connection with or arising fi'om 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 Des~nated 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 Reforn~ 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 it~ a~), way attempt to use Consultant's position to influence a govermnental decision m which Consultant ks~ows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 2/I 9/02 Three-Party Agreement Page 6 7.3. Seamh to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and .represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in' the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this Agreement. 7.4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 7.5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will iunnediately 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. S~ecific Warranties A. g3inst 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 Cousultant Associates shall not acquire auy 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. 2/19/02 Three-Party Agreement 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 fi-om 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, aod 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 control or direction over Consultant's work. 10. Admi_nj~trat.!_ve C!aims Requireme~~ aud_Pr0fed!~res_: No suit shall be brought arising out of this agreement, against the City, unless a claim has first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance ~vith 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. 2/19/02 'Fltte e- Party Agreement Page 8 1 1. Hold Harmless and Indemnification. 11.1. Consultant to Indemnify City re. Injuries. Consultant shall defend, indenmify, protect and hold harmless the City, its elected and appointed officers and employees and Applicant from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employees, subcontractors, or others of City or Applicant in connection with the execution of the work covered by this Agreement, except only for those claims arising fi.om the sole negligence or sole willful misconduct of the City, its officers, or employees, or Applicant, Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees or Applicant in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City or Applicant, defend any such suit or action brought against the City, its officers, agents, or employees or Applicant. Consultants' indemnification of City and Applicant shall not be limited by any prior or subsequent declaration by the Consultant. 11.2. ~p~licant to Indemnil~City re. Compensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and fi.om any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, en~p?oyees, agents, or representatives of the City ("City Indemnitees"), in any way resulting from or arising out of the refusal to pay compensation as demanded by Consultant for the performance of services required by this Agreement. 12. Business Licenses. Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title 5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13.1. Consultant not authorized to Rep_resent City. Unless speciticatly au/hot, zed 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. 2/19/02 Three-Party Agreement Page 9 13.2. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notiges, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified for the parties in Exhibit A. 13.3. Entitlement to Su.bsequent 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 A~oreement. 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 hereo£ Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. 13.5. _Capacity of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13.6. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. Three-Party A~reemenl 2/I 9/02 ~ Page 10 13.8. Counterparts_. This Agreement may be executed Lq 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. Severabihty. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge ofthe existence ora breach shall not operate or be construed to operate as a waiver of any such breach. 13.12. Remedie~s. The rights of thc parties under this Agreement are cumulative and not exclusive of any fights 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 2/19/02 Three-Party Agreement Page 11 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 fights 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, discl6se (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.) 2/19/02 Three-Party Agreement Page 12 Signuture Page To Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and Otay Project, L.P., Applicant For Consulting Work to be Rendered with regard to Applicants' Project (Page 1 of 2) NOW TH~EREFORE, the patties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista By: Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to Form: John M. Kaheny, City Attorney Dated: February 15, 2002 Consultant: RECON Environmental inc. Charles S. Bull, President 2/15/02 Three-Party Agreement Page 13 Signature Page To Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and Otay Project L.P., Applicant For Consulting Work to be Rendered with regard to Applicants' Project (Page 2 of 2) Dated: &~ /q,~oO~ Applicant: Otay P[ojec~;.~_ . ~/ By: Title: 2/19/02 Three-Party Agreement Page 14 Exhibit A Reference Date of Agreement: February 26, 2002 Effective Date of Agreement: Date of City Council Approval of Agreement City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Consultant: RECON Enviromnental, Inc. Business Form of Consultant: ( ) Sole P~'oprietorship ( ) Partnership (X) Corporation Address: 1927 Fifth Avenue, Suite 200 San Diego, CA 92101-2358 Applicant: Otay Project L.P. Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Other: A California Limited Liability Company Address: 350 West Ash Street, Suite 730 San Diego, CA 92101 1. Property (Commonly known address or General Descr/ption): i'he property is coJmnonly known as the Otay Ranch Village Two. It consists of approximately 726- acres of undeveloped land in the eastern portion of the City ofChula Vista..The project is located in the Olay Valley parcel of the Olay Ranch General Development Plan (GDP) project area and is surrounded by the Otay Landfill on the west, Olay Ranch Village One (Heritage) on the north, future Olay Ranch Village Six on the east and future Olay Ranch Village Four on the South. 2/19/02 .., Three-Party Agreement Page 15 2. Project Description ("Project"): The project consists of the preparation of a Second-Tier Environmental Impact Report (ERR) for the Otay Ranch Village Two SPA Plan and Tentative Tract Map. The Otay Ranch Village Two SPA Plan would refine the goals objectives, and policies of the Otay Ranch General Development Plan. The SPA Plan would include single and multiple family residential, commercial, industrial, community purpose facilities, community parks, an elementary school and fire station. The SPA PI~_~ in~c!udes two alternatives (herein after referred to as Alternative One and Alternative T'~-o)'. The primary difference in the Altemati~,e plans is that Alternative One includes residential land uses adjacent to the Otay Landfill and in Alternative Two residential land uses would be b~gffe~ecl'fmm the Otay Landfill by a_ one thousand (1,000) foot nuisance easement for industrial land'us'~i The proposed number of units to be analyzed in the EIR may be influenced by the inclusion ~£a transit line within the Project. 3. Entitlements applied for: Proposed discretionary actions for the Property include the following: 1. An amendment to the City of Chula Vista General Plan (GPA); 2. An amendment to the Otay Ranch General Development Plan (GDP); 3. An amendment to the Phase One and Two Resource Management Plan (RMP); 4. An amendment to the County of San Diego Otay Subregional Plan (SRP); 5. Adoption of a Sectional Planniug Area (SPA) Plan; and 6. Tentative Tract Map 4. General Nature of Consulting Services ("Services -General"): RECON shall prepare an EIR for Otay Ranch Village Two SPA Plan and Tentative Tract Map to the satisfaction of the Environmental Review Coordinator and to meet State and City environmental review requirements. The EIR shall be a second "tier" EIR from the Final Otay Ranch Program EIR #EIR 90-01) and Sphere of Influence Update EIR (#EIR 94-03), Otay Ranch Sectional Planning Area One Final Second-Tier Envirmunental Impact Report (#EIR 95-01), Otay Ranch SPA One And GDP Ameudments Final Second-Tier Environmental Impact Report (#EIR 97-03)(hereinafter collectively referred to as the "previous EIRs"). 5 I_3etailed Scope of Work ("Detailed Services"): RECON shall prepare a Second-Tier Environmental Impact Report (E[R) for the Otay Ranch Village Two and Tentative Tract Maps in accordance with the California Environmental Quality Act (CEQA). RECON shall also work closely with the City of Chula Vista staffto ensure that the EIR for the Otay Ranch Village Two EIR shall meet all of the City's needs. The ErR must comply with the current California Environmental Quality Act (CEQA) of 1970 (Public Resources Code Section 21000 et seq.); the current State CEQA guidelines (California Administration Code section 15000 et seq.); the Environmental Review Procedures of the City of Chula Vista; and the regulations, require~nents, and procedures of any responsible public agency or any agency with jurisdiction by 2/19/02 Three Party Agreement Page 16 law. All Detailed Services described herein shall be performed by RECON to the satisfaction of the City's Environmental Review Coordinator. RECON shall consult with all trustee and responsible agencies, agencies having jurisdiction by law and any other person or organization having control over or interest in the proposed project as necessary, to ensure that the E[R is current and complete as to issues raised by such agencies. The Draft and Final E[R shall be prepared in such a manner that they will be meaningful and useful to decision-makers and to the public. Technical data is to be summarized in the body of the report and placed in an appendix. All documents shall be prepared in Microsoft Word 2000. The E1R shall be prepared to include the required sections of an EIR, as set forth in applicable law including State CEQA Guidelines Section 15122 - 15131. The document shall be formatted as directed by the City and shall include, but not be limited to the following sections: Table of Contents Executive Summary Introduction Project Description Environmental Setting Environmental Impact Analysis Cumulative Impacts o Growth Inducing Impacts Alternatives Mitigation Monitoring & Reporting Program ® hxeversible Enviromnental Changes Effects Found not to be Significant References, Persons and Agencies Contacted and EIR Preparation RECON shall compile supporting documents into separate volume(s) to be referred to as the Appendices to the EIR. The Appendices shall include the Notice of Preparation (NOP), responses to the NOP and any technical reports and relevant technical information generated for the EIR SPECIFIC TASK DESCRIPTION: [r~ providin~ environme~ta! set,rices for t m Ota¥ Ra ~c ~ V~.lage Tx~ o EFR, RECON shal! ~e~To~ m the following tasks: ' Task 1- Initial Study and Notice of Preparation Task I a: Review of Existing Documents RECON will review previous documents that have been prepared for the Otay Ranch General Development Plan Project, including, but not limited to: 2/19/02 Three~PartyAgreement Page 17 1. Otay Ranch General Development Plan, dated October 1993, and as amended June 1996. 2. Final Program Environmental Impact Report (EIR 90-01) for the Otay Ranch General Development Plan, prepared by Ogden, dated December 1992. 3. Otay Ranch Sectional Planning Area One Plan and Annexation Final Second Tier Environmental Impact Report (EIR 95-01), prepared by Cotton/Beland/Associates, dated April 1996. 4. Final Second Tier Environmental Impact Report for the Proposed Otay Ranch Sectional Planning Area One and GDP/SRP Amendments (EIR 97-03). 5. Final Sec°nd Tier Environmental Impact Report for the General Development Plan Amendment/Village 11 Sectional Planning Area, Conceptual Tentative Map (EIR 01- 02), prepared by the City of Chula Vista, dated September 2001. 6. Draft Second Tier Environmental hnpact Report for Otay Ranch Village Six Sectional Plmming Area (SPA) Plan, prepared by RECON, dated September 2001. 7. Transportation Technical Appendix, Final Program Environmental Impact Report, FEIR 90-01, Otay Ranch General Development Plan, dated October 1993. 8. Otay Ranch SPA One Transportation Study prepared by Cotton/Beland/Associates, dated September 1995. (Appendix B). Task lb: Project Initiation RECON will participate in the project initiation meeting for the project. As a resnlt of the project initiation meeting, the schedule outlined in this proposal will be evaluated and coordinated with the needs of the City and the applicant, and points of contact will be clearly identified. RECON will prepare an environmental team contact list and distribute it to all team members. This list will provide names, phone numbers, addresses, and areas of responsibility, and will include project applicant representatives and City staff, as well as RECON team members. Task lc: Initial Study RECON will prepare a draft Initial Study (Deliverable No. 1) using the environmental checklist based on the City of Chula Vista's Environmental Checklist Form or the Environmental Checklist Form in the State CEQA Guidelines (Appendix G) to assess the potential enviromnental impacts'associated with the Project. The Environmental Checklist will form the basis to support which issues will be addressed in detail in the EIR and which issues have been identified as not significant and warrant no further discussion. City staff will review the draft Initial Study and, if necessary provide connnents to RECON. RECON 2/19/02 Three-Party Agreement Page 18 shall incorporate the Ci~'s written co (Deliverable No.2). ~a -~uts aha prowoe me ~ty w~th a final Initial Study Task lc Deliverables: 1. Draft Initial Study 2. Final lnitial Study Task Id: Notice of Preparation RECON will prepare a draft Notice of Preparation (NOP) and Environmental Checklist Form (Deliverable No. 1). City staffwill review the draft NOP and, if necessary provide comments to RECON. RECON shall incorporate the City's comments and provide the City with a final NOP (Deliverable No.2). Comments received during the 30-day public review period will be used to finalize the scope of the Draft EIR. Task lb Deliverables: 1. Five (5) copies of the Draft NOP and Environmental Checklist Form 2. Five (5) copies of the Final NOP and Environmental Checklist Form Task 2- First Screencheck Draft EIR and Associated Technical Reports RECON shall prepare.a description of existing conditions for, collect data on, and analyze potential impacts to the envirornnental issues identified in the project-specific Enviromnental Checklist Form for the Project. The following is an outline of the contents for the Draft EIR. The preparation of technical reports and any modeling required to complete these reports is addressed under the individual issue discussions. ~ Introduction -- This section of the EIR will describe the project background, purpose and need, and objectives. The introduction will also provide an overview of the CEQA process and related permits and discretionary actions required for implementation of the proposed Project. Project Description -- This section of the EIR will describe in detail the key features of the proposed Project, including the "worst case" scenario for evaluation purposes. The Village Two SPA Plan includes two alternatives (herein after referred to as Alternative One and Alternative Two). The primary, difference in the Alternative plans is that Al~emative One includes residential land uses adjacent to the Otay Landfill and in Alternative Two residential land uses would be buffered from the Otay Landfill by a one thousand (1,000) foot nuisance easement for industrial land uses. Alternative One and Two will be described in the Project description and analyzed throughout the ErR at an equal level of detail. Optional Tasks: In addition to the Alternative One and Alternative Two analyses discussed above, and at the discretion of the Enviromnental Review Coordinator, RECON may perform one of the following optional tasks: 2/I 9/02 Three-Party Agreemenl Page 19 RECON will analyze an alternate land use plan within the Village Two EIR, which will includes an underlyii~g 25-acre community park land use designation. This land use plan will be analyzed throughout all sections of the EIR. RECON shall analyze a proposed GDP/General Plan Amendment to remove the adopted Community Park designation within Village Two and to m-designate a floating Connnunity Park designation within Village Seven. As a part of this evaluation, RECON will describe the proposed acreages changes in Village Seven and include a comprehensive analysis of applicable GDP and General Plan policies and objectives, as well as a complete evaluation of all issues areas evaluated in the EIR. RECON will be responsible for preparing and including graphics within the EIR depicting the adopted and proposed land use changes within Villages Two and Seven. * Environmental Setting -- This section of the EIR will present a discussion of existing conditions within the Property and adjacent land parcels that could be affected by the proposed development. o Environmental Issues -- This section of the EIR will present an analysis of each of the envimmnental issues identified in the project-specific Environmental Initial Study. The analysis will identify potentially significant environmental impacts that could result fi-om implementation of the proposed Project and proposed mitigation measures to reduce these i~npacts to below a level of significance. Specific Issues to be Addressed in the Draft EIR: Land Use, Planning, and Zoning RECON will identify and review existing plans, policies, and ordinances applicable to the Project site. Documents to be reviewed include, but are not limited to: The Chula Vista General Plan and all related elements - The Chula Vista Zoning Ordinance as it relates to the specific property The Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) and EIR (and supporting documents) County of San Diego General Plan The land use section of the EIR will address impacts associated with the boundary reconfiguration and land use changes associated with the proposed SPA relative to the adjacent planned land uses. To address these issues, RECON will: 1. Provide mapping that clearly depicts the adopted Chula Vista General Plan land uses, the Otay Ranch GDPs and affected SPA plans, the Otay landfill, and City zoning designations. RECON will also provide an aerial photograph and project vicinity map to show the existing developed areas in Otay Ranch and the project vicinity. Describe applicable goals and 2/19/02 Three-Party Agree~nent Page 20 policies from the adopted Otay Ranch GDP/SRP documents and City General Plan. 2. Describe and assess any potential for land use compatibility and community character impacts fi.om the proposed land uses. The interface of the proposed land use modifications with the existing, approved, and future designated land uses will be addressed through a compatibility analysis. The compatibility analysis will be based primarily on the discussions presented in the noise, biology, traffic Circulation, adopted General Plan and GDP/SRP policies, and landform alteration/visual quality sections of the EIR. 3. RECON will incorporate the results of the analysis of the potential for the landfill, operated to the immediate west of the project, to impact residential uses on the Village 2 site. An evaluation of the potential adverse effects of placing residential uses within the 1,000-foot buffer established by GDP/SRP. 4. Describe the relationship of the proposed land use changes and policy modifications with the adopted Otay Ranch GDP/SRP plans and policies. Assess the potential for sign/ficant land use planning impacts associated with the proposed changes. 5. Develop recommendations for mitigation measures to reduce potentially significant land use planning/community character impacts. The EIR will also evaluate the Project for compatibility with adjacent land uses and surrounding densities; identify whether the Development has substantial conflicts with the established community character; and identify inconsistencies or conflicts between the Project and the goals, objectives, and policies of any applicable plan policy, ordinance, guideline, or regulation, particularly in relation to the Olay Ranch GDP. The EIR will evaluate the impacts of the proposed physical improvements that could result upon implementation of the proposed development in Village Two. The EIR will include both a plan-to-plan and a plan-to-ground land use analysis. The land use analysis will be contained in the EIR, and a technical report will not be prepared for this issue. Landform Alteration/Aesthetics Currently, the project site and project vicinity are undeveloped. Ultimate development of this area will change its visual character. The EIR will analyze the impact of the proposed development on existing landform and community character. A visual resource analysis will be conducted in conjunction with a site visit evaluation. Key views will be identified and photographed within the viewshed of the site. To document this analysis, RECON will complete the tasks listed below. 1. Provide current color photographs of the project site from key vantage points throughout the area to illustrate the current condition. 2. Provide an impact discussion of the landform alteration necessary for the Project based on the grading plan and the proposed tentative map. Describe earthwork estimates, manufactured slope heights, and grading balance issues. 3. Describe the potential for any visual quality impacts fi.om the on-site uses from area roads. 4. Discuss mitigation measures that may be required to reduce the landform alteratiorffaesthetic 2/19/02 Tl~ree- Party Agreement Page 21 impacts if any are identified. This analysis will be contained in the EIR, and a separate technical report will not be prepared. Photosimulations RECONwill prepare computer-aided photosimulations will be prepared for Alternative One and Alternative Two. These visual simulations will create simulated views of each Project Altemative as observed fi.om vantage points adjacent to the site. Up to three vantage point locations for each project alternative (Alternative One and Alternative Two) will be selected in consultation with City planning, engineering, and landscape staff. Vantage points could include Olympic Parkway and locations along Pasco Ranchero and La Media Road. Each simulation will include a photograph of the existing conditions, the graded condition based on the proposed tentative map grading, representation of the built condition pmsuant to the SPA plan requirements, and a representation of the built condition with landscaping. RECON will create photosimulations for each project alternative (Alternative One and Alternative Two) by computer modeling in 3-D using grading plans provided in electronic forn~ by the Applicant. To maintain efficiency, site detail will be limited to major slopes, pads, and streets, and different color shading will be used to differentiate these areas. Landscaping will be limited to major screening trees at the project perimeter or in areas where landscaping is proposed for screening. A generic building envelope will be used to illustrate land uses on site. This generic structure will be modified in scale, form, and color to best depict the proposed building envelopes and colors~ Photographs will be taken at each of the agreed-upon vantage points. A computer-generated view ~vill be created fi.om each of the same locations that the photographs were taken. The computer- generated view of the proposed project will be digitally inserted into the photographs using surrounding landforn~ and features for registration. Transportation, Circulation, and Access Subconsultant, Linscott, Law, and Greenspan (LLG), will complete the traffic analysis under the direction ofRECON. LLG will first meet with City staffand the Development team to confirm the EIR's project definition and will obtain pr/or traffic studies prepared for projects in the area. Based on the project definition, LLG will conduct AM/PM peak hour traffic counts, determine the existing AM/PM peak hour Levels of Service (LOS), and obtain the most recent street segment traffic voltancs using City, Couuly, and Calt~ ans ~ccords. LLG will then conduct a project-to-ground and plan-to-plan analysis to determine pre-project traffic volumes at key intersections and street segments with the existing street system, add total project traffic to the baseline condition, analyze intersections and street segments, estimate impacts, and recommend mitigation measures as needed. In terms of cumulative traffic impacts, LLG will determine the future year scenarios that will likely inchide Year 2005, 2010, 2015, 2020, and buildout analysis. About 25 intersections and 40 to 50 street segments will be analyzed for each scenario, including AM/PM intersectiun and street segment LOS for each scenario. A Congestion 2/19/02 Three Party Agreement Page 22 Management Plan (CMP) analysis on the key arterials and freeways will also be conducted in the cumulative traffic analysis. Additionally, LLG will conduct an access analysis for the Development site, a Public Facilities Financing Plan (PFFP) analysis, and will evaluate traffic impacts resulting from the proposed project. The PFFP analysis will also contain a phasing threshold unit analysis for the purpose of determining infrastructure timing and construction. The drag Traffic Technical Report will be reviewed by and subject to the approval of City staff including staff fi-om the Traffic Engineering Section. Comments will be provided by the City to LLG and RECON. A final Traffic Technical Report will be prepared and summarized in the EIR. If the proposed development has significant traffic impacts, measures will be proposed to mitigate project impacts. The Traffic Technical Report will include a separate section with the list of proposed mitigation measures, as well as a summary of what the levels of service (LOS) would be after mitigation for all impacted roadway segments. A copy of the final traffic technical report will also be included as an appendix to the EIR. Air Quality The analysis of air quality impacts for the EIR will be based on the state and federal ambient air quality standards and on colnpatibility with the adopted air quality plan for the area. The air quality analysis will evaluate regional impacts and localized air quality impacts, as well as construction- related impacts. RECON will complete an air quality analysis for the proposed project. This analysis will involve the completion ofa Caline carbon monoxide hot spot model for each circulation element roadway based on traffic volumes developed by LLG. A receiver will be placed at a distance orS0 feet from each circulation element roadway, and a potential exposure level will be calculated. In addition to the hot spot modeling, a regional discussion of air emissions will be developed based on the proposed land uses. The air quality model URBEMIS will be used to project future emissions generated by the project. This pollutant contribution will be compared to the regional air quality conditions and an impact assessment will be made. The modeling results will be summarized in the EIR. RECON will also prepare an air quality technical report, which will be included as an appendix to the EIR. Noise Based on future site grading identified in the proposed tentative map and the traffic volumes identified in the traffic analysis to be prepared by LLG, a noise analysis will be comPleted. Community noise analysis will be completed using the Federal Highway Administration Noise Prediction Model STAMINA 2.0 version, to determine the future community noise equivalent levels (CNEL). The future traffic conditions will be based on the average daily trips provided in the traffic update for the project. Where necessary, mitigation measures will be recommended, including benns, barriers, or setbacks, to reduce noise levels to below City standards. 2/19/02 ! . ~ Three-Par~y Agreement ~ Page 23 Because the project includes tentative maps, specific noise analyses willbe prepared. These analyses will be completed for all circulation element roadways and will result in designs for noise barriers or setbacks as necessary to achieve the City standards. The results of the acoustical analysis, in the form of a technical report, will be prepared by RECON and provided to City staff for review. RECON will prepare the noise technical report in accordance with the requirements of the City of Chula Vista. City staff will provide any comments on the acoustical analysis to RECON. The results of the acoustical analysi~ will then be summarized in the EIR and the full written technical report will be included as an appendix to the EIR. Cultural Resources RECON will provide a third-party review of the cultural resource report provided by the applicant and, if necessary provide comments. RECON will review subsequent drafts of the revised cultural resources report to ensure that all comments fi.om staffand RECON have been adequately addressed. RECON will incorporate the results of the final cultural resource report into the EIR. Paleontological Resources The Property is located within the upper sandstone unit of the Otay Formation, which has produced important vertebrate fossil remains. The EIR will address paleontological impacts and recommend mitigation including but not limited to on--site monitoring during grading, recovery and salvage of remains in a funely manner, and methods for retaining all field notes, photographs, and maps. Biological Resources The majority of the Village Two area has been subjected to agricultural use for decades. The City's Otay Ranch Resource Management Plan (RMP) identifies several sensitive an/mal species on site as well as limited areas of coastal sage scrub habitat. While the continuous agricultural disturbance has limited the potential for sensitive species on the property, RECON will provide a third-party review of the biological resources report provided by the applicant and, if necessary provide comments. RECON will review subsequent drafts of the revised biological resources report to ensure that all comments fi.om staff and RECON have been adequately addressed. RECON will also evaluate the Village Two site in the context of the Resource Manageme it Plan (RMP/RMP2) prepared for the Ota¥ Ranch GDP and for conformance with the City's dralt MSCP Plan. The results of the final biological report provided by the applicant will be summarized in the EIR and the full written technical report will be included as an appendix to the EIR. Agricultural Resources The Otay Ranch Program EIR found that the conversion of agriculture lands represented a significant adverse impact. RECON will summarize the impact analysis/mitigation requirements for agricultural resources pursuant to the Program EIR, and evaluate the Agricultural Plan prepared as 2/19/02 Three-Party' Agreement Page 24 part of the SPA plan. Hydrology, Drainage, and Urban Stormwater Runoff Tiffs section of the EIR will be prepared based on the drainage studies provided by the project applicants. The drainage plans will be reviewed and approved by the City of Chula Vista Engineering Department and incorporated into the EIR. RECON will complete the tasks listed below: Review the existing hydrology and drainage information contained in the previous Program EIR, adjacent Otay Ranch Village SPA Plan E1Rs, and other secondary sources in order to describe the existing watershed/floodplain, storm drains, drainage improvements, and detention features that exist or are planned within the project area. RECON will also, contact the City of Chula Vista Engineering Department to verify the current status of planned and approved drainage improvements in the project area. 2. Based on information provided by the Applicant prepared in conjunction with the SPA Plan and tentative map/grading plan, RECON will determine the potential for on- and off-site hydrologic impacts associated with the proposed project. RECON will also, describe any modifications to the drainage features that would be anticipated to accormmodate the proposed land use changes. 3. Describe necessary National Pollutant Discharge Elimination System (NPDES) permitting requirements and best management practices (BMPs) based on consultation with the City of Chula Vista Engineering Department. A list of BMPs appropriate and drainage fee requirements for the project will be included as mitigation measures in the EIR. The mitigation measures will be developed consistent with Order No. 2001-01 (NPDES No. CAS0108758). Geology and Soils The geology and soils section of the draft EIR will be prepared based on the geotechnical studies provided by the project applicant to the City of Chula Vista. RECON will review the technical study plcloarcd l:or the projeci and suimnarize thc results in tile gcoiogy and soils section of tile EIR. Recommendations for detailed geotechnical evaluations and possible mitigation alternatives (e.g., deep foundations, stone columns) wilt be included in the EIR Public Services and Utilities The EIR will document available services. A log of all contacts will be made and references will be included in the EIR. RECON will complete the following tasks: 2/19/02 ~-~, Three-Party Agreement Page 25 1. Obtain the PFFP and incorporate a discussion of phasing of facilities development into the EIR. 2. Discuss park and recreation, library, schools, solid waste, gas, and electricity demands, and assess the adequacy of facilities. Describe mitigation measures, if necessary. 3. Contact the City of Chula Vista Engineering Department and the project engineer to document the current capacity/sizing of the sewer lines, current sewage generation rates for residential use, and any additional sewer facilities in the project area that were discussed in previous EIRs. Describe the sewage to be generated by the project and discuss any potential sewer capacity impacts and mitigation measures, if necessary. 5. Contact the Otay Water District to assess the issues associated with the provision of potable and reclaimed water. Summarize the impact and mitigation requirements technical studies for water and recycled water provided by the project applicants in the body of the E[R. RECON will discuss Senate Bill 221 as it may apply to this project. This legislation pertains to the requirement for written verification of water supplies for tentative maps of more than 500 dwelling units. 6. Based on review of existing documents and contact with the Chula Vista police and fire departments, describe current and anticipated response times, facilities, and perso~mel. Determine whether the project will comply with the City of Chula Vista Thresholds Standards Policy and describe mitigation n~easures that would be required for the project. The EIR analysis ~vill address services and facilities related to sewer and water, police, fire, emergency medical service, recreation, schools, library, solid waste disposal, gas and electricity, and telephone and cable. Other public facilities, such as transportation and drainage facilities, will be appropriately referenced. In addition, the need for on-site and off-site public facility improvements will be identified, impacts to public services and utilities will be assessed, and appropriate mitigation, if required, will be recolnmended. RECON will also prepare and distribute public service letters to all public service providers that are planned to serve the Village Two project. The responses to these letters, as well as the information contained in the PFFP, will be summarized in the E1R text. No technical report will be prepared for this issue. In an effort to preserve the City's quality of life, the City adopted a Growth Management Ordinance (Chapter 19.09 of the Municipal Code) that contains Quality of Lif~ Threshold Standards for 11 facilities and improvements. These include fire and emergency medical service, police, traffic, parks and recreation, drainage, libraries, air quality, economics, schools, and sewer and water. The scope of work for this section of the EIR will include the following: 1. Describe the City's threshold goals and standards for each of the 11 facilities. 2/19/02 / ~, ~ Three-Party Agreement Page 26 2. Based on the analyses presented in the public services and facilities section of the EIR, ummanze the project s consistency w~th the estabhshed thresholds standards and determine if the requirements have been Satisfied. Alternatives RECON will examine a reasonable range of alternatives that could feasibly a~tain the basic development objectives, including altcmativcs that could reduce significant environmental effects as identified in the environmental analysis of the project. This section of thc EIR will include thc two scenarios for the No Project Alternative and development consistent with the cxisfing plan. In addition, a range of other alternatives may be included that achieve thc objectives of the project while reducing the impacts identified in the body of thc EIR. These alternatives will be developed during thc project initiation phase and will be refined in conjunction with thc assessment of potential impacts and needed mitigation during the environmental review process. Each alternative analyzed in the EIR will include a "plan-to-ground" and "plan-to-plan" analysis. Cumulative Impacts The cumulative discussion in the EIR will include projects currently approved and reasonably anticipated in this area. This section of the EIR will consider and describe adopted plans and polices that are in place which would mitigate cumulative impacts, and will be consistent with the cumulative analyses presented in the recently approved EIRs for Otay Ranch Villages 6 and 11, and EastLake III, and the currently initiated Village 12 review. Indirect cumulative impacts and compliance with the City of Chula Vista's adopted Threshold Standards and other applicable policies and programs will also be evaluated. Other Mandatory CEQA Sections RECON will address all required CEQA sections, including all sections outlined above, in addition to other mandatory sections, including Growth Inducement and Effects Not Found to be Significant. The proposed Project will be evaluated for its potential to induce economic or population growth through ~onstmction of additional housing in the surrounding environment, or by the provision of c c~c~.c~oi;n~cn~ K~zk..~Nx. llalsoprovidcasummary of those Effects Found Not to be Significant, with rationale provided as to how the conclusion of non-significance was reached. Addifionally, Irreversible Environmental Changes will be discussed, as will Unavoidable Significant Impacts. Task 2: Deliverables I. Twenty-five (25) copies of the First Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The First Screencheck Draft E1R shall be prepared it~ Microsoft Word 2000 and shall be printed at 1.5 spacing. 9/02 Three-Party Agreement Page 27 Task 3 - Second Screencheck Draft EIR RECON will address City staff and legal counsel comments on the Fimt Screencheck EIR and prepare and submit twenty-five (25) copies of the Second Screencheck Draft EIR to the City for review and comment. Task 3: Deliverables 1. Twenty-five (25) copies of the Second Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The Second Screencheck Draft EIR shall be prepared in Microsoft Word 2000 and shall be printed at 1.5 spacing. Task 4 - Third Screencheck (Administrative) Draft EIR RECON will address City staff and legal counsel comments on the Second Screencheck Draft E1R and prepare and submit five (5) copies of the Third Screencheck (Administrative) Draft EIR to the City for review and continent. Task 4: Deliverables l. Five (5) copies of the Third Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The Third Screencheck Draft EIR shall be prepared in Microsoft Word 2000 attd shall be printed at single spacing. Task 5 - Public Review Draft EIR/NO~OC RECON will incorporate City staff and legal counsel conmlents on the Third Screencheck (Administrative) Draft EIR and then prepare the public review Draft EIR acceptable to the City's Enviromnental Review Coordinator. RECON will also prepare the Notice of Availability (NOA) and Notice of Completion (NOC). Task 5: Deliverables 1. Seventy-five (75) copies each of the NOA, NOC, Draft EIR and Appendices, including ten (1 O) copies of the documents provided in three-ring binders and the remainder bound. Task 6 - Candidate Draft CEQA Findings of Fact/Statement of Overriding Considerations (SOC) RECON will prepare Draft Candidate CEQA Findings of Fact and, if necessary, a Statement of Overriding Considerations for review by City of Chula Vista staffand legal counsel. The Findings will specify which mitigation measures have been incorporated into the project and those measures that have not, and will explain why certain measures have been found to be infeasible. The Findings will also identify feasible project alternatives that could reduce adverse enviromnental effects but are not being implemented, with an explanation as to why 2/19/02 Three- Party Agreement Page 28 they are considered to be infeasible. Task 6: Deliverables 1. Five (5) copies of the draft Candidate Findings of Fact and Statement of Overriding Considerations. Task 7 - Response to Comments/Final EIR/MMRP/NOD Task 7a: Responses to Comments Following the close of public review, RECON will meet with City staff and review all comments received. RECON shall prepare draft responses to comments and associated revisions to the Draft EIR. RECON will submit five (5) copies of the draft responses to comments and amended EIR sections to the City for review by City of Chula Vista staffand legal counsel. RECON shall revise the draft responses to comments and amended Ell>, sections based on comments submitted by City staffand legal counsel. RECON shall then submit the revised draft responses to comments and amended EIR sections for review by the City. Any changes to the responses to cormnents and amended E1R sections shall be subject to the approval of the City's Environmental Review Coordinator. If additional studies or analyses are requested by the City as a result of the comments received, RECON shall complete those studies based on the receipt of authorization from the City's Environmental Review Coordinator. Task 7a: Deliverables 1. Five (5) copies of the draft responses to comments and associated revisions to the Draft EIR 2. Five (5) copies of the revised draft responses to comments and associated revisions to the Draft E1R Task 7b: Mitigation Monitoring and Reporting Program The Mitigation Monitoring and Reporting Program (MMRP) will be developed at the draft EIR stage and finalized after the close of public review. It will list and identify specific monitoring activities that would be required on an issue-by-issue basis, and will establish a reporting systmn and criteria for evaluating the success of the mitigation measures. In addition, the MMRP will outline the appropriate time for mitigation of impacts, such as grading permits, final maps, landscape plans, or other discretionary actions. Task 7b: Deliverables 1. One (1) copy of the draft MMRP 2. One (1) copy of the final MMRP (finalized after the close of public review) 2/19/02 Three-Party Agreement Page 29 Task 7c: Final Candidate CEQA Findus of Fact and Statement of Overrid_~g Considerations Should the City determine that additional changes are needed to the draft Candidate CEQA Findings of Fact and ' · . - Statement of Ovemding Considerations as a result of the comments received during the public review period, RECON shall revise the draft Candidate Findings of Fact and Statement of Overriding Considerations to incorporate these changes. Any changes to the Findings of Fact and Statement of Overriding Considerations shall be subject to the approval of the City's Environmental Review Coordinator. Task 7c: Deliverables 1. Five (5) copies of the final Candidate CEQA Findings of Fact and Statement of Overriding Considerations Task 7d: Final EIR RECON will prepare a Final EIR, MMRP, Appendices, Candidate CEQA Findings of Fact and Statement of Overriding Considerations (if applicable) and the Mitigation Monitoring and Reporting Program (MMRP). RECON will provide seventy-five (75) copies of the final EIR and seventy-five (75) copies of the EIR technical appendices to the City. RECON will also submit a full version of the Final EIR in electronic format (Microsoft Word). In addition, a draft Notice of Determination (NOD) and California Department ofFish and Game (CDFG) fee certification letter for the project shall be submitted by RECON to the City in preparation fbr fining with the County Clerk's office, upon project approval. Task 7d: Deliverables 1. Seventy-five (75) copies of the Final E[R, MMRP, Appendices, and Candidate CEQA Findings and Statement of Overriding Considerations (if applicable), including ten (10) copies of the Final EIR provided in three-ring binders and the remainder bound. One (1) copy of a draft NOD and CDFG fee certification letter. 2. One (1) reproducible master copy of the Final EIR suitable for reproduction on City equipment and not three-hole punche& and One (1) computer disk copy or CD ROM version of the Final E[R and related docnments that can be read by Microsoft Word 2000. ' Task 8 - Hearing/Meetings Charles Bull, Project Manager will attend, at the direction of the City's Environmental Review Coordinator, project team meetings throughout the Project duration. These include the following meetings: ~ Project initiation meeting; 2/19/02 Three-Patt~ Agreement Page 30 Project workshop; Scoping Meeting; · Weekly meetings with City staff; ° Coordination with County staff A Resource Conservation Commission meeting; A Planning Commission hearing on the draft E[R; A Planning Commission hearing on the final EIR and Candidate CEQA findings; A Board of Supervisors heating (if necessary); and o A City Council hearing on the final EIR and Candidate CEQA findings. RECON will attend a total of forty (40) weekly meetings with City staff. If additional meetings are needed, they will be billed at a time and materials basis at an agreed to cost. Additional meetings requested by the City will be considered additional work pursuant to Section 3.2.2 of this Agreement. Task 9 - Tentative Map Processing Ifdeterrnined necessary by the Environmental Review Coordinator, RECON will conduct additional environmental review (i.e. Addendum) for the Village Two tentative map. The Environmental Remew Coordinator will determine the appropriate environmental document at the time the final tentative map is processed. If the Environmental Review Coordinator determines that an Addendum is not the appropriate document, then additional work on a document other than an addendum shall be processed pursuant to Section 3.2.2 of the contract. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Draft NOP and Initial Study Mamh 12, 2002 Dciivcrablc No. 2~ h'i~ai N©i~ and hfitiat S~udy March 20, 2002 Deliverable No. 3: Draft Technical Reports (traffic, air quality, and noise) April 16, 2002 Deliverable No. 4 First Screencheck EIR July 22, 2002 Deliverable No. 5: Second Screencheck EIR August 30, 2002 Deliverable No. 6: Third Screencheck EIR October 3, 2002 2/19/02 Three-Party Agreement Page 31 Deliverable No. 7: Public Review Draft EIR/NOC~OA October 18, 2002 Deliverable No. 8: Draft Findings of Fact and Statement of November 16, 2002 Overriding Considerations Deliverable No. 9: Draft EIR Response to Comments/MMRP November 16, 2002 Deliverable No. 10: Final EIRAMMRP/Final Findings of Fact December 13, 2002 and SOC Draft Notice of Determination/ CDFG fee letter Deliverable No. 11: Meetings and Hearings Per Task 8 Dates for Completion of all Consultant Services: Date of City Council approval of environmental documents, or completion of all tasks to the satisfaction of the City's Environmental Review Coordinator, whichever is later. 7. Documents to be provided by Applicant to Consultant: (X) site plans (X) tentative tract maps ( ) architectural elevations (X) project description. (X) other: SPA Plan, PFFP, Technical Reports (i.e. Geotechnical Investigation, Drainage Study, Water Service Study, Sewer Service Study, Biological Resources Report and Cultural Resources Report), aod related GDP documents 8. Contract Administrators. City: Marilyn R.F. Ponseggi, Environmental Review Coordinator Applicant: Klm Kilkermy, President, Otay Project, L.P. Consultant: . Charles Bull, President, RECON Inc. 9. Statement of Economic Interests, Consultant Reporting Categories, per Conllict of Interest Code: (X) Not Applicable. Not an FPPC Filer. ( ) Category No. 1. Investments and sources of income. ( ) Category No. 2. Interests in real property. 2/19/02 Tltree-Party Agreement ~ ~ Page 32 ) Category No. 3. Investments, interest in real property and somces of income subjeft 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, conslruction 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 servmes, 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: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insnrance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage). 11. Pemfitted Subconsultant: Linscott, Law & Greenspan 1565 Hotel Circle South, Suite 310 San Diego, CA 92108 (619) 299-3090 Lmscott, Law, aud Greenspan (LLG) will complete the traffic analysis under the direction of P-ECON. 2/19/02 Three-Party Agreement Page 33 Exhibit B Additional Recitals WHEREAS, pursuant the California Environmental Quality Act (CEQA) the Environmental Review Coordinator has determined that the proposed Otay Ranch Village Two Sectional Planning Area Plan and Tentative Tract Map requires the preparation of an EIR; and WHEREAS, it was determined by the Director of Planning and Building that staffhas neither the available time or expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds for the consulting services necessary for the preparation of the environmental documents; and WHEREAS, a Request for Proposal was distributed to 28 persons or firms included on the list of qualified Environmental Consultants, and six proposals were received by the City; and WHEREAS, a Selection Committee was established pursuant to Section 2.56.110 of the Municipal Code to review the proposals and conduct interviews of the most qualified firms based on established evaluation criteria; and WHEREAS, the Selection Committee interviewed the top three firms and recommended RECON Inc. to perform the required services for the City; and WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in Section 6.5.2 of the Environmental Review Procedures; and WHEREAS, the proposed contract ~vith RECON Inc. to provide consultant services would be in an amount not to exceed $218,458 with an additional $54,865 for additional services should they be necessary. 2/19/02 Three-Pasty Agreemen! Page 34 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. ( ) Single Fixed Fee Arrangement. For performance o fall 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 FeeAmount: $218,458.00 EIR for the Otay Ranch Village Two SPA Plan and Tentative Tract Map. Milestone or Event Percent and Amount of Fixed Fee 1. Signing of this agreement by all parties and upon the 10% ($21,845.80) request of the consultant. 2. Submittal of Initial Study and NOP 10% ($21,845.80) 3. Submittal of First Screencheck Environmental Document* 30% ($65,537.4) 4. Commencement of Public Review 25% ($54,614.50) 5. Completion of Final Environmental Document 15% ($32,768.7) 6. Retention Percentage - See Section D. below 10% ($21,845.80) 7. Twenty-five Percent Contingency Fee** $54,614.00 *For pumoses of payment the first screencheck shall completely address and analyze all issnes identified in the detailed scope-of-work (described in Exhibit "A', Section 5) to the satisfaction of the Environmental Review Coordinator. Payment shall not be made until the City's Environmental Review Coordinator determines that a complete screencheck document has been submitted. **The Environmental Review Coordinator in her discretion independently or upon request from the Consnltant, from time to time, may negotiate additional services to be per~brmed by the Consultant under this Agreement in order to cover unforeseen issues that may be identified during the 2/I 9/02 Three-Party Agreement Page 35 .preparation of the environmental document ("Additional Services"). The cost of Additional Services m connection with the environmental document shall not exceed 25% of the total contract mount ($218,458). ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. ( ) Time and Materials For performance of the General and Detailed Services of Consultant as herein required, Applicant shall pay Consultant for the productive hours o£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 re]mburseables ( Maxtmmn 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 $218,458 (plus 25% 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. 2/19/02 Three Party Agreement · · Page 36 Consultant's Rate Schedule Hourly _Category of Employe_e Rate Principal Associate $127.00 Assistant $87.00 $78.00 Production Supervisor $53.00 Graphics $52.00 2/19/02 T}u-ee-Party Agreement . . Page 37 P , D CONSULTANT'S COST BREAKDOWN Task Total Cost Task t Initial Study! Notice of Preparation Initial Study Preparation $2,828 NOP Preparation $1,438 Subtotal $4,266 Task 2 Prepare Technical Reports and First Screencheck Land use 3,467 Landform (includes photosimulations for Altemative One and Two) 14,857 Traffic (EIR section) 3,477 Traffic Impact Analysis (prepared by LLG) 59,800 Air Quality 4,398 Noise 8,411 Cultural Resources 2,314 Paleontological Resources 270 Biological Resources 3,918 Agriculture 575 Hydrology 1,969 Geology 1,637 Public Services 7,674 Thresholds Analysis 3,171 Other Sections 2,287 A~ternatives 7,174 Subtotal Task 2 $125,399.00 Task 3 Second Screencheck Draft Revise documents 14,507 Task 4 Third Screencheck Draft (Administrative Draft) Revise documents 6,948 Task 5 Public Review Draft EIPJNOA/NOC Final Edits and Distribution 1,764 Task 6 Candidate Draft Findings and SOC Prepare, Revise and Finalize 2,138 Task 7 Responses to Comments/Final EIPJMMRP/NOD Prepare drafts, revise and finalize 13,452 Task 8 Meetings and Hearings Attendance 20,484 Task 9 TM Processing (if necessary) Preparation of Environmental Document (Le. Addendum) 1,500 Subtotal EIR $190,458 Expenses 23,000 ~* Optional Task: Community Park Overlay Analysis $t,500 ** Optional Task: GDP/GP Amendment analysis to remove the Community Park within Village Two and redesignate a floating Community park within Village 7 $5,0001 1 Total contract amount of $218,458 includes option 2 for purposes of determining the maximum allowable contract amount should either option be selected. 2/t 9/02 Three-Party Agreement Page 38 Materials SeParately Paid For by Applicant - ( ) Materials Cost or Rate Reports NA Copies ( ) Travel NA ( ) Printing NA ( ) Postage NA ( ) Delivery NA ( ) Long Distance Telephone Charges NA (X) Other-SANDAG Model Run Fees Actual Deposit (X) Deposit Amount: $218,458 - As agreed to by the Applicant, 100% of the Deposit ($218,458)istobemadebyOtayProject, L.p. Applicant agreesto deposit within 10daysif City requests to do so, a sum (estimated to be up to $3,000) for additional Materials separately paid for by the Applicant. (X) Use of Deposit to Pay Consultant. Notwilhstanding 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 fi.om the amount of the Deposit. If Applicant shall protest the propriety ora billing to City in advance of payment, City shall consider pphcant 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. ( ) 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 2/! 9/02 Three-Party Agreement Page 39 (X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (X) Other: Milestone 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 Milestone C. City's Account Number: To be assigned after agreement is processed. D. Security for Performance ( ) 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: ( ) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (X) Completion of All Consultant Services to the satisfaction of the Environmental Review Coordinator. ( ) Other: 2/19/02 T}tree Party Agreement Page 40 Exhibit A -1 Reference Date of Agreement: February 26, 2002 Date of First Amendment: October 21, 2003 Effective Date of Agreement: Date of City Council Approval of Agreement City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Consultant: RECON Environmental, Inc. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 1927 FifLh Avenue, Suite 200 San Diego, CA 92101-2358 Applicant: Otay Project L.P. Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Other: A California Limited Liability Company Address: 350 West Ash Street, Suite 730 San Diego, CA 92101 1. Property (Commonly known address or General Description): The property is commonly known as the Otay Ranch Village Two. It consists of approximately 726- acres of undeveloped land in the eastern portion of the City of Chula Vista. The project is located in the Otay Valley parcel of the Otay Ranch General Development Plan (GDP) project area and is surrotmded by the Otay Landfill on the west, Otay Ranch Village One (Heritage) on the north, future Otay Ranch Village Six on the east and future Otay Ranch Village Four on the South. /',~/a~ Three-Party Agreement 10/14/039 ...... ~ /.j L Page 15 2. Project Description ("Project"): The project consists of the preparation of a Second-Tier Environmental Impact Report (EIR) for the Otay Ranch Village Two SPA Plan and Tentative Tract Map. The Otay Ranch Village Two. Ttu'ee, Planning Area 18b, and Portions of Villages Four an Seven (hereinafter referred to as the Project) SPA Plan would refine the goals objectives, and policies of the Otay Ranch General Development Plan. The SPA Plan would include single and multiple family residential, conmaercial, industrial, community purpose facilities, community parks, an elementary school and fire station. The SPA Plan includes two project level alternatives (herein after referred to as Alternatives "A" and "B") One _ ' ). Both proiect level alternatives call for development that is less dense than the applicant's preferred project. Alternative "A" would be the most consistent with the Otay Ranch General Development Pla]l, Resource Management Plan, and Multiple Species Conservation Plan, Alternative "A" would exceed the current GDP permitted residential density but would maintain an existing 1.000 foot buffer surrounding the Ota¥ Landfill, and would not involve grading in Wolf Ca]won. Alternative ~'B" is not consistent with the Otay Ranch GDP in that this alternative exceeds the GDP allowed residential density, residential uses are called out in the required landfill buffer and grading would take place within Wolf Canyon. Alternative "B" would require m-nendments to the R_MP and MSCP preserve boundaries. Tkc pr'~mm~5 may .............. / .............................................. j .... 3. Entitlements applied for: Proposed discretionary actions for thc Property include the following: 1. An amendment to the City of Chula Vista General Plan (GPA); 2. An amendment to the Otay Ranch General Development Plan (GDP); 3. An amendment to the Phase One and Two Resource Management Plan (RMP); 4. An amendment to the County of San Diego Otay Subregional Plan (SRP); 5. Adoption of a Sectional Planning Area (SPA) Plan; and 6. Tentative Tract Map 4. General Nature of Consulting Services ("Services--General"): RECON shall prepare an EIR for Otay Ranch Village Two SPA Plan and Tentative Tract Map to the satisfaction of the Environmental Review Coordinator and to meet State and City environmental review requirements. The EIR shall be a second "tier" EIR from the Final Otay Ranch Program EIR #EIR 90-01) and Sphere of Influence Update EIR (#EIR 94-03), Otay Ranch Sectional Planning Area One Final Second-Tier Environmental Impact Report (#EIR 95-01), Otay Ranch SPA One And GDP Amendments Final Second-Tier Environmental Impact Report (#EIR 97-03) (hereinafter collectively referred to as the "previous EIRs'). Three-Party Agreement 10/15/03 ....... Page 16 ? 5. Detailed Scope of Work ("Detailed Services"): RECON shall prepare a Second-Tier Environmental Impact Report (EIR) for the Otay Ranch Village Two and Tentative Tract Maps in accordance with the California Environmental Quality Act (CEQA). RECON shall also work closely with the City of Chula Vista staff to ensure that the EIR for the Otay Ranch Village Two EIR shall meet all of the City's needs. The EIR must comply with the current California Environmental Quality Act (CEQA) of 1970 (Public Resources Code Section 21000 et seq.); the current State CEQA guidelines (California Administration Code section 15000 et seq.); the Environmental Review Procedures of the City of Chula Vista; and the regulations, requirements, and procedures of any responsible public agency or any agency with jurisdiction by law. Ail Detailed Services described herein shall be performed by RECON to the satisfaction of the City's Environmental Review Coordinator. RECON shall consult with all trustee and responsible agencies, agencies having jurisdiction by law and any other person or organization having control over or interest in the proposed project as necessary, to ensure that the E1R is current and complete as to issues raised by such agencies. The Draft and Final EIR shall be prepared in such a manner that they will be meaningful and useful to decision-makers and to the public. Technical data is to be summarized in the body of the report and placed in an appendix. All documents shall be prepared in Microsoft Word 2000. The EIR shall be prepared to include the required sections of an EIR, as set forth in applicable law including State CEQA Guidelines Section 15122 - 15131. The document shall be formatted as directed by the City and shall include, but not be limited to the following sections: · Table of Contents · Executive Summary · Introduction · Project Description · Environmental Setting · Environmental Impact Analysis · Cumulative Impacts · Growth Inducing Impacts · Alternatives · Mitigation Monitoring & Reporting Program · Irreversible Environmental Changes · Effects Found not to be Significant · References, Persons and Agencies Contacted and EIR Preparation RECON shall compile supporting documents into separate volume(s) to be referred to as the Appendices to the EIR. The Appendices shall include the Notice of Preparation (NOP), responses to the NOP and any technical reports and relevant technical information generated for the EIR Three-Party Agreement 10/14/039/22/02 ~~ L[6 Page 17 I SPECIFIC TASK DESCRIPTION: In providing environmental services for the Otay Ranch Village Two EIR, RECON shall perform the following tasks: Task 1- Initial Study and Notice of Preparation Task 1 a: Review of Existing Documents RECON will review previous documents that have been prepared for the Otay Ranch General Development Plan Project, including, but not limited to: 1.Otay Ranch General Development Plan, dated October 1993, and as amended June 1996. 2. Final Program Environmental Impact Report (EIR 90-01) for the Otay Ranch General Development Plan, prepared by Ogden, dated December 1992. 3. Otay Ranch Sectional Planning Area One Plan and Annexation Final Second Tier Environmental Impact Report (EIR 95-01), prepared by Cotton/Beland/Associates, dated April 1996. 4. Final Second Tier Environmental Impact Report for the Proposed Otay Ranch Sectional Planning Area One and GDP/SRP Amendments (EIR 97-03). 5. Final Second Tier Environmental Impact Report for the General Development Plan Amendment/Village 11 Sectional Planning Area, Conceptual Tentative Map (EIR 01- 02), prepared by the City of Chula Vista, dated September 2001. 6. Draft Second Tier Environmental Impact Report for Otay Ranch Village Six Sectional Planning Area (SPA) Plan, prepared by RECON, dated September 2001. 7.Transportation Technical Appendix, Final Program Environmental Impact Report, FEIR 90-01, Otay Ranch General Development Plan, dated October 1993. 8.Otay Ranch SPA One Transportation Study prepared by Cotton/Beland/Associates, dated September 1995. (Appendix B). Task lb: Proiect Initiation RECON will participate in the project initiation meeting for the project. As a result of the project initiation meeting, the schedule outlined in this proposal will be evaluated and coordinated with the needs of the City and the applicant, and points of contact will be clearly identified. RECON will prepare an environmental team contact list and distribute it to all team members. This list will provide names, phone numbers, addresses, and areas of Three-Party Agreement 10/14/0~97227~2 Page 18 I ·r~,- responsibility, and will include project applicant representatives and City staff, as well as RECON team members. Task lc: Initial Study RECON will prepare a draft Initial Study (Deliverable No. 1) using the environmental checklist based on the City of Chula Vista's Environmental Checklist Form or the Environmental Checklist Form in the State CEQA Guidelines (Appendix G) to assess the potential environmental impacts associated with the Project. The Environmental Checklist will form the basis to support which issues will be addressed in detail in the EIR and which issues have been identified as not significant and warrant no further discussion. City staff will review the draft Initial Study and, if necessary provide comments to RECON. RECON shall incorporate the City's written comments and provide the City with a final Initial Study (Deliverable No.2). Task lc Deliverables: 1. Draft Initial Study 2. Final Initial Study Task ld: Notice of Preparation RECON will prepare a draft Notice of Preparation (NOP) and Environmental Checklist Form (Deliverable No. 1). City staff will review the draft NOP and, ifnecessaryprovide comments to RECON. RECON shall incorporate the City's comments and provide the City with a final NOP (Deliverable No.2). Comments received during the 30-daypublic review period will be used to finalize the scope of the Draft EIR. Task lb Deliverables: 1. Five (5) copies of the Draft NOP and Environmental Checklist Form 2. Five (5) copies of the Final NOP and Environmental Checklist Form Task 2- First Screencheck Draft EIR and Associated Technical Reports RECON shall prepare a description of existing conditions for, collect data on, and analyze potential impacts to the environmental issues identified in the project-specific Environmental Checklist Form for the Project. The following is an outline of the contents for the Draft EIR. The preparation of technical reports and any modeling required to complete these reports is addressed under the individual issue discussions. · Introduction -- This section of the E1R will describe the project background, purpose and need, and objectives. The introduction will also provide an overview of the CEQA process and related permits and discretionary actions required for implementation of the proposed Project. Project Description -- This section of the EIR will describe in detail the key features of the proposed Project, including the "worst case" scenario for evaluation purposes The SPA plan includes Three-Party Agreement two project level alternatives. Both project level alternatives call for development that is less dense than the applicant's preferred project. Alternative "A" would be the most consistent with the Ota¥ Ranch General Development Plan, Resource Management Plan, and Multiple Species Conservation Plan, Alternative "A" would exceed the current GDP permitted residential density but would maintain an existing 1,000 foot buffer surrotmding the Ota¥ Landfill, and would not involve gradlnc, in Wolf Canyon. Alternative"B' is not conststent ..... w~th the Ota¥ Ranch GDP ~n that this alternative exceeds the GDP allowed residential density, residential uses are called out in the required landfill buffer and grading would take place within Wolf Canyon. Alternative "B" would require amendments to the RMP and MSCP preserve boundaries... Thy. Village Twv. SPA Plan inc!udcs ~v ............... : ........... ~, .................. \ i!!agc Two ~-'~ to ~ ~ ...... '- -- · Environmental Setting -- This section of the EIR will present a discussion of existing conditions within the Property and adjacent land parcels that could be affected by the proposed development. · Environmental Issues -- This section of the EIR will present an analysis of each of the environmental issues identified in the project-specific Environmental Initial Study. The analysis will identify potentially significant environmental impacts that could result from implementation of the proposed Project and proposed mitigation measures to reduce these impacts to below a level of significance. ... Three-Party Agreement 10/14/039 ...... t j, . ~ Page 20 [ .°ag.c Specific Issues to be Addressed in the Draft EIR: Land Use, Planning, and Zoning RECON will identify and review existing plans, policies, and ordinances applicable to the Project site. Documents to bc reviewed include, but arc not limited to: · The Chula Vista General Plan and all related elements · The Chula Vista Zoning Ordinance as it relates to the specific property · The Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) and EIR (and supporting documents) · County of San Diego General Plan The land use section of the EIR will address impacts associated with the boundary reconfiguration and land usc changes associated with the proposed SPA relative to the adjacent planned land uses. To address these issues, RECON will: 1. Provide mapping that clearly depicts thc adopted Chula Vista General Plan land uses, thc Otay Ranch GDPs and affected SPA plans, the Otay landfill, and City zoning designations. RECON will also provide an aerial photograph and project vicinity map to show the existing developed areas in Otay Ranch and the project vicinity. Describe applicable goals and policies from the adopted Otay Ranch GDP/SRP documents and City General Plan. 2. Describe and assess any potential for land use compatibility and community character impacts from the proposed land uses. The interface of the proposed land use modifications with thc existing, approved, and future designated land uses will bc addressed through a compatibility analysis. The compatibility analysis will be based primarily on the discussions presented in the noise, biology, traffic circulation, adopted General Plan and GDP/SRP policies, and landform alteration/visual quality sections of thc EIR. 3. RECON will incorporate the results of the analysis of the potential for the landfill, operated to the immediate west of the project, to impact residential uses on the Village 2 site. An evaluation of the potential adverse effects of placing residential uses within the 1,000-foot buffer established by GDP/SRP. 4. Describe the relationship of the proposed land use changes and policy modifications with the adopted Otay Ranch GDP/SRP plans and policies. Assess the potential for significant land use planning impacts associated with the proposed changes. 5. Develop recommendations for mitigation measures to reduce potentially significant land use planning/community character impacts. 6. RECON will discuss the environmental effects of all project alternatives upon WolfCanyo,, and the effects of the alignment of Heritage Road. 7. RECON will address tbe environmental impacts associated with the placement of thc required community park acreage into Village Four along the southwestem edge of thc project. 10/I ~t/W* n/'~. m~ Three-Party Agreement The EIR will also evaluate the Project for compatibility with adjacent land uses and surrounding densities; identify whether the Development has substantial conflicts with the established community character; and identify inconsistencies or conflicts between the Project and the goals, objectives, and policies of any applicable plan policy, ordinance, guideline, or regulation, particularly in relation to the Otay Ranch GDP. The EIR will evaluate the impacts of the proposed physical improvements that could result upon implementation of the proposed development in Village Two. The EIR will include both a plan-to-plan and a plan-to-ground land use analysis. The land use analysis will be contained in the EIR, and a technical report will not be prepared for this issue. Landform Alteration/Aesthetics Currently, the project site and project vicinity are undeveloped. Ultimate development of this area will change its visual character. The EIR will analyze the impact of the proposed development on existing landform and community character. A visual resource analysis will be conducted in conjunction with a site visit evaluation. Key views will be identified and photographed within the viewshed of the site. To document this analysis, RECON will complete the tasks listed below. 1. Provide current color photographs of the project site from key vantage points throughout the area to illustrate the current condition. 2. Provide an impact discussion of the landform alteration necessary for the Project based on the grading plan and the proposed tentative map. Describe earthwork estimates, manufactured slope heights, and grading balance issues. 3. Describe the potential for any visual quality impacts from the on-site uses from area roads. 4. Discuss mitigation measures that may be required to reduce the landform alteration/aesthetic impacts if any are identified. This analysis will be contained in the EIR, and a separate technical report will not be prepared. Photosimulations RECON will prepare computer-aided photosimulations ~vi!! Al ............... or the applicant's preferred alternative, as well as Alternative "B". These visual simulations will create simulated views ~c ~,,~ t~:~,~ ^ ~ ..... "'~ as observed from three vantage points adjacent to the site. [~,~e-The vantage point locations for ~^, .... .;~.~ r~ .... ~ ^~ ....... ~: .... q""^~ will be selected in consultation with City planning, gi fig dl d ape taff. V ...... en nee n ,an an sc s an,~b~ ..... ~ .................... a ............... Each simulation will include a photograph of the existing conditions, the graded condition based on the proposed tentative map grading, representation of the built condition pursuant to the SPA plan requirements, and a representation of the built condition with landscaping. RECONwill' create photoslmulatlons' ' fo Two) the applicant's preferred alternative and Alternative "B" by computer modeling in 3-D using Three-Party Agreement 10/14/039/22/02 l~3 ~ ('5) / Page22 I Page grading plans provided in electronic form by the Applicant. To maintain efficiency, site detail will be limited to major slopes, pads, and streets, and different color shading will be used to differentiate these areas. Landscaping will be limited to major screening trees at the project perimeter or in areas where landscaping is proposed for screening. A generic building envelope will be used to illustrate land uses on site. This generic structure will be modified in scale, form, and color to best depict the proposed building envelopes and colors for residential and industrial uses: Photographs will be taken at each of the agreed-upon vantage points. A computer-generated view will be created from each of the same locations that the photographs were taken. The computer- generated view of the proposed project will be digitally inserted into the photographs using surrounding landform and features for registration. Transportation, Circulation, and Access Subconsultant, Linscott, Law, and Greenspan (LLG), will complete the traffic analysis under the direction of RECON for the three project level alternatives. LLG will fimt meet with City staff and the Development team to confirm the EIR's project definition(s) and will obtain prior traffic studies prepared for projects in the area. Based on the project definition, LLG will conduct AM/PM peak hour traffic counts, determine the existing AM/PM peak hour Levels of Service (LOS), and obtain the most recent street segment traffic volumes using City, County, and Caltrans records. LLG will then conduct a project-to-ground and plan-to-plan analysis to determine pre-project traffic volumes at key intersections and street segments with the existing street system, add total project traffic to the baseline condition, analyze intersections and street segments, estimate impacts, and recommend mitigation measures as needed. In terms of cumulative traffic impacts, LLG will determine the future year scenarios that will likely include Year 2005, 2010, 2015, 2020, and buildout analysis. About 25 30 intersections and n, 9 t~ 50 street segments will be analyzed for each scenario, including AM/PM intersection and street segment LOS for each scenario. A total of sixteen traffic scenarios will be analyzed in the traffic impact report that addi'ess the proiect and two alternatives, as well as address anticipated modifications to the Ota¥ Ranch General Development Plan and the Chula Vista General Plan as they relate to project traffic impacts. A Congestion Management Plan (CMP) analysis on the key arterials and freeways will also be conducted in the cumulative traffic analysis. Additionally, LLG will conduct an access analysis for the Development site, a Public Facilities Financing Plan (PFFP) analysis, and will evaluate traffic impacts resulting from the proposed project. The PFFP analysis will also contain a phasing threshold unit analysis for the purpose of determining infrastructure timing and construction. The draft Traffic Technical Report will be reviewed by and subject to the approval of City staff including staff from the Traffic Engineering Section. Comments will be provided by the City to LLG and RECON. A final Traffic Technical Report will be prepared and summarized in the EIR. If the .proposed development has significant traffic impacts, measures will be proposed to mitigate project ~mpacts. The Traffic Technical Report will include a separate section with the list of proposed mitigation measures, as well as a summary of what the levels of service (LOS) would be after mitigation for all impacted roadway segments. A copy of the final traffic technical report will also be included as an appendix to the EIR. 1 O~ 14/029/22,/02 Three-Party Agreement Page 23 Pag~ Air Quality The analysis of air quality impacts for thc EIR will bc based on the state and federal ambient air quality standards and on compatibility with the adopted air quality plan for thc area. The air quality analysis will evaluate regional impacts and localized air quality impacts, as well as construction- related impacts. RECON will complete an air quality analysis for the proposed project. This analysis will involve the completion of a Caline carbon monoxide hot spot model for each circulation element roadway based on traffic volumes developed by LLG. A receiver will be placed at a distance of 50 feet from each circulation element roadway, and a potential exposure level will bc caiculated. In addition to thc hot spot modeling, a regional discussion of air emissions will be developed based on the proposed land uses. Thc air quality model URBEMIS will be used to project future emissions generated by the project. This pollutant contribution will be compared to the regional air quality conditions and an impact assessment will be made. The modeling results will be summarized in the EIR. RECON will also prepare an air quality technical report, which will be included as an appendix to the E[R. Noise Based on future site grading identified in thc proposed tentative map and the traffic volumes identified in the traffic analysis to be prepared by LLG, a noise analysis will be completed. Community noise analysis will be completed using the Federal Highway Administration Noise Prediction Model STAMINA 2.0 version, to determine the future community noise equivalent levels (CNEL). The future traffic conditions will be based on the average daily trips provided in the traffic update for the project. Where necessary, mitigation measures will be recommended, including berms, barriers, or setbacks, to reduce noise levels to below City standards. Because the project includes tentative maps, specific noise analyses will be prepared. These analyses will be completed for all circulation element roadways and will result in designs for noise barriers or setbacks as necessary to achieve the City standards. The results of thc acoustical analysis, in the form of a technical report, will be prepared by RECON and provided to City staff for review. RECON will prepare the noise technical report in accordance with the requirements of the City of Chula Vista. City staff will provide any comments on the acoustical analysis to RECON. The results of the acoustical analysis will then be summarized in the EIR and the full written technical report will be included as an appendix to the EIR. Cultural Resources RECON will provide a third-party review of the cultural resource report provided by the applicant and, if necessary provide comments. RECON will review subsequent drafts of the revised cultural resources report to ensure that all comments from staffand RECON have been adequately addressed. RECON will incorporate the results of the final cultural resource report into the EIR. Three-Party Agreement 10/14/039/22/93 ~~ t,~-) '~! ~ Page24 [ Paleontological Resources The Property is located within the upper sandstone unit of the Otay Formation, which has produced important vertebrate fossil remains. The EIR will address paleontological impacts and recommend mitigation including but not limited to on-site monitoring during grading, recovery and salvage of remains in a timely manner, and methods for retaining all field notes, photographs, and maps. Biological Resources The majority of the Village Two area has been subjected to agricultural use for decades. The City's Otay Ranch Resource Management Plan (RMP) identifies several sensitive animal species on site as well as limited areas of coastal sage scrub habitat. While the continuous agricultural disturbance has limited the potential for sensitive species on the property, RECON will provide a third-party review of the biological resources report provided by the applicant and, if necessary provide comments. RECON will review subsequent drafts of the revised biological resources report to ensure that all comments t?om staffand RECON have been adequately addressed. RECON will also evaluate the Village Two site in the context of the Resource Management Plan (RMP/RMP2) prepared for the Otay Ranch GDP and for conformance with the City's draft MSCP Plan. The results of the final biological report provided by the applicant will be summarized in the EIR and the full written technical report will be included as an appendix to the EIR. Agricultural Resources The Otay Ranch Program E1R found that the conversion of agriculture lands represented a significant adverse impact. RECON will summarize the impact analysis/mitigation requirements for agricultural resources pursuant to the Program EIR, and evaluate the Agricultural Plan prepared as part of the SPA plan. Hydrology, Drainage, and Urban Stormwater Runoff This section of the EIR will be prepared based on the drainage studies provided by the project applicants. The drainage plans will be reviewed and approved by the City of Chula Vista Engineering Department and incorporated into the EIR. RECON will complete the tasks listed below: 1. Review the existing hydrology and drainage information contained in the previous Program EIR, adjacent Otay Ranch Village SPA Plan EIRs, and other secondary sources in order to describe the existing watershed/floodplain, storm drains, drainage improvements, and detention features that exist or are planned within the project area. RECON will also, contact the City of Chula Vista Engineering Department to verify the current status of planned and approved drainage improvements in the project area. Three-Party Agreement 10/14/0 ........ [~,. ~ , ~)!.[ Page 25 I Page 2. Based on information provided by the Applicant prepared in conjunction with the SPA Plan and tentative map/grading plan, RECON will determine the potential for on- and off-site hydrologic impacts associated with the proposed project. RECON will also, describe any modifications to the drainage features that would be anticipated to accommodate the proposed land use changes. 3. Describe necessary National Pollutant Discharge Elimination System (NPDES) permitting requirements and best management practices (BMPs) based on consultation with the City of Chula Vista Engineering Department. A list of BMPs appropriate and drainage fee requirements for the project will be included as mitigation measures in the EIR. The mitigation measures will be developed consistent with Order No. 2001-01 CNPDES No. CAS0108758). Geology and Soils The geology and soils section of the draft EIR will be prepared based on the geotechnical studies provided by the project applicant to the City of Chula Vista. RECON will review the technical study prepared for the project and summarize the results in the geology and soils section of the EIR. Recommendations for detailed geoteclmical evaluations and possible mitigation alternatives (e.g., deep foundations, stone columns) will be included in the EIR. Landfill Study Subconsultant Environ will complete a Landfill Study under the direction of RECON, and will complete the following tasks: 1. Environ will provide technical guidance and peer review of the Health Risk Assessment provided by applicant's consultant SCS Engineers. as well other technical documents provided by applicant with regard to landfill issues. This work shall be completed by no later than December 1, 2003. 2. a) Upon written request of the City's Environmental Review Coordinator, Environ shall perfom~ an updated human health risk assessment (HRA) of the potential affects of operations at and emissions from the Otav Landfill to future occupants of Otay Ranch Villages 2, 3 and Planning Area 18b. The HRA will evaluate maximum cancer, chronic, and acute health risks to future residents and employees. For the purposes of liRA, it will be assumed that residential development could occur within the 1,000-foot buffer zone. However, the impact analysis will not be limited to the 1,000-foot buffer zone (i.e., maximum impacts could occur outside of the 1,000-foot buffer) or limited to residential rises. The HRA will consist of: i. Estimation of all potential toxic emission sources including, but not limited to: landfill gas (LFG), the LFG flare, the LFG fired internal combustion (IC) engine, and fugitive dust emissions (trace metals in PML0). Emission estimates will Three-Party Agreement consider the total landfill operations over time. not just operations associated with the landfill expansion. ii. Dispersion of the hazardous emissions to the surrounding community to estimate concentration of hazardous substances at sensitive receivers. iii. Estimation of the potential cancer (including cancer burden) and non-cancer health risks resulting from the hazardous pollutant emissions. b) It is assumed that the applicant will provide all raw data (includh~g emission calculations, som'ce parameters, and other site-specific data) in electronic format to ENVIRON. A screening level air dispersion model, SCREEN3, approved by the USEPA. will be used to simulate the air dispersion. This model provides conservative estimates of the downwind concentrations by using the worst-case meteorological data, which are not site-specific. c) The HRA shall consist of one docmnent and shall include an odor impact analysis, nuisance dust impact assessment, and LFG migration evaluation. d) This work shall be completed on or before eight weeks from the written request referred to above. 3. Prepare an assessment of odor impacts to future residents of Otay Ranch Villages 2.3~ and Planning Area 18b due to odorous emissions from the Otay Landfill. As with the HRA, it will be assumed that residential or industrial development could occur within the 1,000-foot buffer zone. The odor impact assessment will be a quantitative analysis that includes: i. Estimation of the emissions of odorous substances ii. Dispersion of the odorous substance emissions iii. Compm-ison of projected odorous substance concentrations at potential receivers to established odor thresholds. To complete the odor impact assessment ENVIRON will estimate the emissions of odorous substances (such as hydrogen sulfide) using available emission factors and other engineering calculations. The SCREEN3 model will be used to simulate the ground level maximum 1- hour concentrations of the odorous substances. The maximum 1-hour concentrations will be converted to concentrations at shorter averaging time (such as 3-minute averages) using the Turner equation, then compared with published odor thresholds. 4. Evaluate potential nuisance (soiling) dust impacts on the project. Nuisance dust is typically larger in diameter than PMl~0 and results from heavy eqUipment operations and wind events at the landfill. Analysis will estimate emissions of soiling dust and evaluate the potential for nuisance dust impacts to surrounding receivers, particularly within the 1,000-foot buffer. Dispersion modeling of the soiling dust emissions will be used as necessary. ENVIRON will use AP-42 emission factors and other engineering calculations to estimate the fugitive Three-Party Agreement 10/15/03 ....... ~'~ ~£ / Page 27 I Page emissions of nuisance dust. Dispersion modeling will be performed to predict the impacts to the surrounding receptors. 5. Evaluate the potential for LFG migration beyond the landfill boundary and the potential impacts to residential and industrial uses adjacent to the landfill (including within the 1,000- foot buffer). 6. Evaluate the LFG control system, taking into account the landfill liner structure, and the design of the LFG collection system. This evaluation will be a qualitative evaluation. 7. The tasks set forth in 4, 5. and 6 above shall be completed by no later than December 1, 2003. Public Services and Utilities Thc EIR will document available services. A log of all contacts will bc made and references will be included in the EIR. RECON will complete the following tasks: 1. Obtain thc PFFP and incorporate a discussion of phasing of facilities development into the EIR. 2. Discuss park and recreation, library, schools, solid waste, gas, and electricity demands, and assess the adequacy of facilities. Describe mitigation measures, if necessary. 3. Contact the City of Chula Vista Engineering Department and the project engineer to document the current capacity/sizing of the sewer lines, current sewage generation rates for residential use, and any additional sewer facilities in the project area that were discussed in previous EIRs. 4. Describe the sewage to be generated by the project and discuss any potential sewer capacity impacts and mitigation measures, if necessary. 5. Contact the Otay Water District to assess thc issues associated with the provision of potable and reclaimed water. Summarize the impact and mitigation requirements technical studies for water and recycled water provided by the project applicants in thc body of the EIR. RECONwilldiscuss Senate Bil1221 asitmayapplytothisproject. This legislationpertains to the requirement for written verification of water supplies for tentative maps of more than 500 dwelling units. 6. Based on review of exiSting documents and contact with the Chula Vista police and fire departments, describe current and anticipated response times, facilities, and personnel. Determine whether the project will comply with the City of Chula Vista Thresholds Standards Policy and describe mitigation measures that would be required for the project. The EIR analysis will address services and facilities related to sewer and water, police, fire, emergency medical service, recreation, schools, library, solid waste disposal, gas and electricity, and telephone and cable. Other public facilities, such as transportation and drainage facilities, will be appropriately referenced. In addition, the need for on-site and off-site public facility improvements Three-Party Agreement 0/15/a'~c~/-,~,/,~ Page 28 I o~ will be identified, impacts to public services and utilities will be assessed, and appropriate mitigation, if required, will be recommended. RECON will also prepare and distribute public service letters to all public service providers that are planned to serve the Village Two project. The responses to these letters, as well as the information contained in the PFFP, will be summarized in the EIR text. No technical report will be prepared for tiffs issue. 10/15/039/22/03 Three-Party Agreement Page 29 Compliance with City Threshold and Standards Policy and Findings of Fact In an effort to preserve the City's quality of life, the City adopted a Growth Management Ordinance (Chapter 19.09 of the Municipal Code) that contains Quality of Life Threshold Standards for 11 facilities and improvements. These include fire and emergency medical service, police, traffic, parks and recreation, drainage, libraries, air quality, economics, schools, and sewer and water. The scope of work for this section of thc EIR will include the following: 1. Describe thc City's threshold goals and standards for each of thc 11 facilities. 2. Based on the analyses presented in the public services and facilities section of the EIR, summarize the project's consistency with the established thresholds standards and determine if the requirements have been satisfied. Alternatives RECON will examine a reasonable range of alternatives that could feasibly attain the basic development objectives, including alternatives that could reduce significant environmental effects as identified in the environmental analysis of the project. This section of the EIR will include the two scenarios for the No Project Alternative and development consistent with thc existing plan. In addition, a range of other alternatives may be included that achieve the objectives of the project while reducing the impacts identified in the body of the EIR. These alternatives will be developed during the project initiation phase and will be refined in conjunction with the assessment of potential impacts and needed mitigation during the environmental review process. Each alternative analyzed in the EIR will include a"plan-to-ground" and "plan-to-plan" analysis. Cumulative Impacts The cumulative discussion in the EIR will include projects currently approved and reasonably anticipated in this area. This section of the EIR will consider and describe adopted plans and polices that are in place which would mitigate cumulative impacts, and will be consistent with the cumulative analyses presented in the recently approved EIRs for Otay Ranch Villages 6 and 1 I, and EastLakc Ill, and the currently initiated Village 12 review. Indirect cumulative impacts and compliance with the City ofChula Vista's adopted Threshold Standards and other applicable policies and programs will also be evaluated. Other Mandatory CEQA Sections RECON will address all required CEQA sections, including all sections outlined above, in addition to other mandatory sections, including Growth Inducement and Effects Not Found to be Significant. The proposed Project will be evaluated for its potential to induce economic or population growth through construction of additional housing in thc surrounding environment, or by the provision of community services and facilities to serve new development. RECON will also provide a summary of those Effects Found Not to be Significant, with rationale provided as to how the conclusion of non-significance was reached. Additionally, Irreversible Environmental Changes will be discussed, as will Unavoidable Significant Impacts. Task 2: Deliverables 1. Twenty-five (25) copies of the First Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The First Screencheck Draft EIR shall be prepared in Microsoft Word 2000 and shall be printed at 1.5 spacing. Task 3 - Second Screencheck Draft EIR RECON will address City staff and legal counsel comments on the First Screencheck EIR and prepare and submit twenty-five (25) copies of the Second Screencheck Draft EIR to the City for review and comment. Task 3: Deliverables 1. Twenty-five (25) copies of the Second Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The Second Screencheck Draft EIR shall be prepared in Microsoft Word 2000 and shall be printed at 1.5 spacing. Task 4 - Third Screencheck (/tdministrative) Draft EIR RECON will address City staff and legal counsel comments on the Second Screencheck Draft EIR and prepare and submit five (5) copies of the Third Screencheck (Administrative) Draft EIR to the City for review and comment. Task 4: Deliverables 1. Five (5) copies of the Third Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The Third Screencheck Draft E[R shall be prepared in Microsoft Word 2000 and shah be printed at single spacing. Task 5 - Public Review Draft EIR/NOA/NOC RECON will incorporate City staff and legal counsel comments on the Third Screencheck (Administrative) Draft EIR and then prepare the public review Draft EIR acceptable to the City's Environmental Review Coordinator. RECON will also prepare the Notice of Availability (NOA) and Notice of Completion (NOC). Task 5: Deliverables 1. Seventy-five (75) copies each of the NOA, NOC, Draft E[R and Appendices, including ten (1 O) copies of the documents provided in three-ring binders and the remainder bound. 10/15/nq o J~/n~ Three-Party Agreement '" ff.<'2...O Page31I ..~,. Task 6 - Candidate Draft CEQA Findings of Fact/Statement of Overriding Considerations (SOC) RECON will prepare Draft Candidate CEQA Findings of Fact and, if necessary, a Statement of Overriding Considerations for review by City of Chula Vista staffand legal counsel. The Findings will specify which mitigation measures have been incorporated into the project and those measures that have not, and will explain why certain measures have been found to be infeasible. The Findings will also identify feasible project alternatives that could reduce adverse environmental effects but are not being implemented, with an explanation as to why they are considered to be infeasible. Task 6: Deliverables 1. Five (5) copies of the draft Candidate Findings of Fact and Statement of Overriding Considerations. Task 7 - Response to Comments/Final EIR/MMRP/NOD Task 7a: Responses to Comments Following the close of public review, RECON will meet with City staff and review all comments received. RECON shall prepare draft responses to comments and associated revisions to the Draft EIR. RECON will submit five (5) copies of the draft responses to comments and amended EIR sections to the City for review by City of Chula Vista staff and legal counsel. RECON shall revise the draft responses to comments and amended EIR sections based on comments submitted by City staffand legal counsel. RECON shall then submit the revised draft responses to comments and amended EI~R sections for review by the City. Any changes to the responses to comments and amended EIR sections shall be subject to the approval of the City's Environmental Review Coordinator. If additional studies or analyses are requested by the City as a result of the comments received, RECON shall complete those studies based on the receipt of authorization from the City's Environmental Review Coordinator. Task 7a: Deliverables 1. Five (5) copies of the draft responses to comments and associated revisions to the Draft EIR 2. Five(5)copiesofthereviseddraflresponsestocommentsandassociated revisions to the Draft EIR Task 7b: Mitigation Monitoring and Reporting Program The Mitigation Monitoring and Reporting Program (MIVYRP) will be developed at the draft EIR stage and finalized after the close of public review. It will list and identify specific monitoring activities that would be required on an issue-by-issue basis, and will establish a reporting system and criteria for evaluating the success of the mitigation measures. In addition, the MMRP will outline the appropriate time for mitigation of impacts, such as grading permits, final maps, landscape plans, or other discretionary actions. Three-Party Agreement I O/1./03., ..... Page 32 Task 7b: Deliverables 1. One (1) copy of the draft MMRP 2. One (1) copy of the final MMRP finalized after the close of public review) Task 7c: Final Candidate CEQA Finding~ of Fact and Statement of Overriding Considerations Should the City determine that additional changes are needed to the draft Candidate CEQA Findings of Fact and Statement of Overriding Considerations as a result of the comments received during the public review period, RECON shall revise the draft Candidate Findings of Fact and Statement of Overriding Considerations to incorporate these changes. Any changes to the Findings of Fact and Statement of Overriding Considerations shall be subject to the approval of the City's Environmental Review Coordinator. Task 7c: Deliverables 1. Five (5) copies of the final Candidate CEQA Findings of Fact and Statement of Overriding Considerations Task 7d: Final ErR RECON will prepare a Final ErR, MMRP, Appendices, Candidate CEQA Findings of Fact and Statement of Overriding Considerations (if applicable) and the Mitigation Monitoring and Reporting Program (MMRP). RECON will provide seventy-five (75) copies of the final ErR and seventy-five (75) copies of the EIR technical appendices to the City. RECON will also submit a full version of the Final ErR in electronic format (Microsoft Word). In addition, a draft Notice of Determination (NOD) and California Department of Fish and Game (CDFG) fee certification letter for the project shall be submitted by RECON to the City in preparation for filing with the County Clerk's office, upon project approval. Task 7d: Deliverables 1. Seventy-five (75) copies of the Final EIR, MMRP, Appendices, and Candidate CEQA Findings and Statement of Overriding Considerations (if applicable), including ten (1 O) copies of the Final E[R provided in three-ring binders and the remainder bound One (1) copy of a draft NOD and CDFG fee certification letter. 2. One (1) reproducible master copy of the Final EIR suitable for reproduction on City equipment and not three-hole punched,, and One (1) computer disk copy or CD ROM version of the Final EIR and related documents that can be read by Microsoft Word 2000. Task 8 - Hearing/M[eetings Three-Party Agreement 10/ 5/039/22~92 [) ~: ~ page 33 [ Pag*. Charles Bull, Project Manager will attend, at the direction of the City's Environmental Review Coordinator, project team meetings throughout the Project duration. These include the following meetings: · Project initiation meeting; · Project workshop; · Scoping Meeting; · Weekly meetings with City staff; · Coordination with County staff · A Resource Conservation Commission meeting; · A Planning Commission hearing on the draft EIR; · A Planning Commission hearing on the final EIR and Candidate CEQA findings; · A Board of Supervisors heating (if necessary); and · A City Council heating on the final EIR and Candidate CEQA findings. RECON will attend a total of forty (40) weekly meetings with City staff. If additional meetings are needed, they will be hilled at a time and materials basis at an agreed to cost. Additional meetings requested by the City will be considered additional work pursuant to Section 3.2.2 of this Agreement. Task 9- Tentative Map Processing If determined necessary by the Environmental Review Coordinator, RECON will conduct additional environmental review (i.e. Addendum) for the Village Two tentative map. The Environmental Review Coordinator will determine the appropriate environmental document at the time the final tentative map is processed. If the Environmental Review Coordinator determines that an Addendum is not the appropriate document, then additional work on a document other than an addendum shall be processed pursuant to Section 3.2.2 of the contract. 6. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Draft NOP and Initial Study March 12, 2002 Deliverable No. 2: Final NOP and Initial Study March 20, 2002 Deliverable No. 3: Draft Technical Reports (traffic, air quality, and noise) April 16, 2002 Three-PartyAgreement Page 34 [ D~ ' ~ Deliverable No. 4 First Screencheck EIR July 22, 2002 Deliverable No. 5: Second Screencheck EIR August 30, 2002 Deliverable No. 6: Third Screeneheck EIR October 3, 2002 Deliverable No. 7: Public Review Draft EIR/NOC/NOA October 18, 2002 Deliverable No. 8: Draft Findings of Fact and Statement of November 16, 2002 Overriding Considerations Deliverable No. 9: Draft EIR Response to Comments/MMRP November 16, 2002 Deliverable No. 10: Final EIR/MMRP/Final Findings of Fact December 13, 2002 and SOC Draft Notice of Determination/ CDFG fee letter Deliverable No. 11: Meetings and Hearings Per Task 8 Dates for Completion of all Consultant Services: Date of City Council approval of environmental documents, or completion of all tasks to the satisfaction of the City's Environmental Review Coordinator, whichever is later. 6.a Such time limits as set forth above may be extended by tbe City's Environmental Review Coordinator in her sole discretion which extension shall not constitute a waiver by the City to demand perfommnce by consultant under the terms of this agreement. 7. Documents to be provided by Applicant to Consultant: (X) site plans (X) tentative tract maps ( ) architectural elevations (X) project description. (X) other: SPA Plan, PFFP, Technical Reports (i.e. Geotechnical Investigation, Drainage Study, Water Service Study, Sewer Service Study, Biological Resources Report and Cultural Resources Report), and related GDP documents 8. Contract Administrators. City: Marilyn R.F. Ponseggi, Environmental Review Coordinator Applicant: Klm Kilkenny, President, Otay Project, L.P. Consultant: Charles Bull, President, RECON Inc. 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: 10/15/039/22/0~ Three-Party Agreement Page 35 (X) Not Applicable. Not an FPPC Filer. Category No. 1. Investments and sources of income. Category No. 2. Interests in real property. Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Category No. 4. Investments in business entities and sources of income, which engage in land development, construction or the acquisition or sale of real property. Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ) 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: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commemial General Liability coverage). (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage). 11. Permitted Subconsultants: Linscott, Law & Greenspan 1565 Hotel Circle South, Suite 310 San Diego, CA 92108 (619) 299-3090 Three-Party Agreement 10/15/039./22./02 Page 36 Linscott, Law, and Greenspan (LLG) will complete the traffic analysis under the direction of RECON. Environ 2010 Main Street, Suite 900 Irvine, CA 92614-7215 1949) 261-5151 Environ will complete the Landfill Smd'/under the direction of RECON. 10/15/039/22/93 Three-Party Agreement Page 37 i~.~ Exhibit B Additional Recitals WHEREAS, pursuant the California Environmental Quality Act (CEQA) the Environmental Review Coordinator has determined that the proposed Otay Ranch Village Two Sectional Planning Area Plan and Tentative Tract Map requires the preparation of an EIR; and WHEREAS, it was determined by the Director of Planning and Building that staff has neither the available time or expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds for the consulting services necessary for the preparation of the environmental documents; and WHEREAS, a Request for Proposal was distributed to 28 persons or firms included on the list of qualified Environmental Consultants, and six proposals were received by the City; and WHEREAS, a Selection Committee was established pursuant to Section 2.56.110 of the Municipal Code to review the proposals and conduct interviews of the most qualified firms based on established evaluation criteria; and WHEREAS, the Selection Committee interviewed the top three firms and recommended RECON Inc. to perform the required services for the City; and WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in Section 6.5.2 of the Environmental Review Procedures; and WHEREAS, the proposed contract with RECON Inc. to provide consultant services would be in an amount not to exceed $2!g ~.5g~62,758 with an additional $5a.,~ !~, 115,689.50 for additional services should they be necessary. Three-Party Agreement 10/15/0 .......... Page 38 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. ( ) Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: (X) Single Fixed Fee Amount: $ .... ..~ ,62,758.00 EIR for the Otay Ranch Village.Two SPA Plan and Tentative Tract Map. Milestone or Event Pement and Amount of Fixed Fee 1. Signing of this agreement by all parties and upon the 10% ($2!,g~,5.~9~6,275.80) request of the consultant. 2. Submittal of Initial Study and NOP 10% ($2!,8~,546.275.80) 3. Submittal of First Screencheck Environmental Document* 30% ($65,537.4)138,827.40 4. Commencement of Public Review 25% ($5'!,~!'1.50)115,689.50 5. Completion of Final Environmental Document 15 % ($.3 ......,69,413.70 6. Retention Percentage - See Section D. below 10¥o (Sr., ....... 6,275.80) 7. Twenty-five Percent Contingency Fee** $5~,,6! ~! .115,689.5000 *For purposes of payment the first screencheck shall completely address and analyze all issues identified in the detailed scope-of-work (described in Exhibit "A", Section 5) to the satisfaction of the Environmental Review Coordinator. Payment shall not be made until the City's Environmental Review Coordinator determines that a complete screencheck document has been submitted. **The Environmental Review Coordinator in her discretion independently or upon request from the Consultant, from time to time, may negotiate additional services to be performed by the Consultant under this Agreement in order to cover unforeseen issues that may be identified during the preparation of the environmental document ("Additional Services"). The cost of Additional Services 0/ 5/039/22/93 Three-Party Agreement Page 39 ~> ...... in connection with the environmental document shall not exceed 25% of the total contract amount ($2! S,~.5~°/!62,758). ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. ( ) 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 $2! ?,,~, 58462,758 (plus 25% 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. Three-Party Agreement 10/l./03 ....... Page 40 ~ .... Consultant's Rate Schedule Hourly Category of Employee Rate Principal $127.00 Associate $87.00 Assistant $78.00 Production Supervisor $53.00 Graphics $52.00 10/15/039/22/9~ Three-Party Agreement PageL 41 CONSULTANT'S COST BREAKDOWN Task Total Cost Task 1 Initial Study/Notice of Preparation Initial Study Preparation __$2,828 NOP Preparation __$1,438 Additional Work for Proiect Alternatives $1,840 Subtotal $4r26656,106 Task 2 Prepare Technical Reports and First Screencheek Land use 2,n. ~79,67~ Landform (includes photosimulations for Alternative One and Two) ! 4,85727,40~ Traffic (EIR section) 3,4778,09~ Traffic Impact Analysis (prepared by LLG) Air Quality ~. ,2986,10~ Landfill Study 75.00~ Noise ~ A ~ 14 5.~ Cultural Resources 2,31 d 2,64~ Paleontological Resources 27052~ Biological Resources 2,9 ! 88,99~ Agficulmre 57596~ Hydrology ! ,9692,35~ Geology I ,~272,02~ Public Services 7,67'!8,7 Thresholds Analysis 3,171 Other Sections 2,2874,58~ Alternatives 7,17 d 13,57~ Task 3 Second Screencheck Draft EIR Revise documents ~ .,~ ~, 26,26~ Task 4 Third Screencheck Draft (Administrative Draft) Revise documents 5,9~.g14,33~ Task 5 Public Review Draft EIR/NOA/NOC Final Edits and Distribution ...... ,18~ Task 6 Candidate Draft Findings and SOC Prepare, Revise and Finahze 2, Task 7 Responses to Comments/Final EIRfMMRP/NOD Prepare drafts, revise and finalize Task 8 Meetings and Hearings Attendance 29,n, 8 ~. 24,92~ Task 9 TM Processing (if necessary) Preparation of Environmental Document (i.e. Addendum) 1,509~, ,60~ Subtotal EIR $~34,75~ Three-Pa~ Agreement I 0/ ./0 ........ Page 42 Expenses 23,99928,00~ TOTAL $~x_3v4_58462,75~ ** Optional Task: Community Park Overlay Analysis e, ~nh ** Optional Task: GDP/GP Amendment analysis to remove the Community Park thin Village Two and redesignate a floating Community park within Village 7 ,~,vv~ Materials Separately Paid For by Applicant - Cost or Rate ( ) Materials NA Reports Copies ( ) Travel NA ( ) Printing NA ( ) Postage NA ( ) Delivery NA ( ) Long Distance Telephone Charges NA (X) Other -SANDAG Model Run Fees Actual Deposit (X) Deposit Amount: $2 ! 8,458~,62~758 - As agreed to by the Applicant, 100% of the Deposit ($218,458) is to be made by Otay Project, L.P. Applicant agrees to deposit within 10 days if City requests to do so, a sum (estimated to be up to $3,000) for additional Materials separately paid for by the Applicant. (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, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. dctcrminin~ tko ma:rimur:~ a!ict:ab!a ccntraat ar, cunt shcu!d ~+~i~ option be Three-Party Agreement ] O/15/0 ......... Pa~e 43 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. Three-Party Agreement 10/I./0 ......... Page 44 (X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (X) Other: Milestone 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 Milestone C. City's Account Number: To be assigned after agreement is processed. D. Security for Performance ( ) 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: ( ) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (X) Completion of All Consultant Services to the satisfaction of the Environmental Review Coordinator. ( ) Other: Three-Pax~y Agreement 0/15/029/22/n~ ,.~' Page 45 I Pag~ RESOLUTION NO. 2003- RESOLUTION OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO A THREE PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; RECON, CONSULTANT; AND OTAY PROJECT, L.P., APPLICANT FOR CONSULTING SERVICES RELATED TO THE PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT (EIR) AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT. WHEREAS, on February 26, 2002 the City Council approved Resolution 2002-053 for a $218,458 agreement with RECON for environmental consulting services for the preparation of an environmental impact report for Otay Ranch Villages Two and Three; and WHEREAS, the parties have determined that it is necessary and appropriate to amend the Original Agreement to expand the scope of the project EIR to adequately cover additional project alternatives submitted by the applicant and provide more extensive environmental impact analysis; and WHEREAS, the parties negotiated the expanded Scope of Work; and WHEREAS, the parties now desire to amend the Agreement to expand the Scope of Work required of RECON to adequately address the project and its alternatives pursuant to CEQA; and NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a first amendment to a three-party agreement between the City of Chula Vista, Recon (Consultant), and Otay Project, L.P. (Applicant) for consulting services related to the preparation of an Environmental Impact Report for the Otay Ranch Villages Two and Three. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said First Amendment on behalf of the City of Chula Vista. Presented by Approved as to form by James D. Sandoval AnffI~I~ore Acting Director o£Planning and Building City Attorney J:\attorney\reso\amendments\RECON Contract Amendment Otay Project 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: 10/13/03 FIRST AMENDMENT TO THE THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, RECON, AND OTAY PROJECT, L.P. FOR CONSULTING SERVICES FOR EIR 0TAY P,~CH VILLAGES TWO AND THREE FIRST AMENDMENT TO THE Three-Party Agreement Between City of Chula Vista, RECON Environmental Incorporated, Consultant, and Otay Project L.P., Applicant For Consulting Work to be Rendered with regard to Applicants' Project Recitals The First Amendment is entered into effective as of October 21, 2003 by and between the City of Chula Vista ("City"); RECON, Consultant, and Otay Project, L.P., Applciant with reference to the following Facts: WHEREAS, the City issued a Request For Proposals and received responses in November of 2001 for an Environmental Consultant for the preparation of an Environmental Impact Report for the Project; and WHEREAS, on February 26, 2002 the City Council approved Resolution 2002-053 for a $21.8,458 agreemen~t with RECON for environmental consulting services for the preparation of an environmental impact report for Otay Ranch Village Two; and WHEREAS, the parties have determined that it is necessary and appropriate to amend the Original Agreement to expand the scope of the project EIR to adequately cover additional project alternatives submitted by the applicant and provide more extensive environmental impact analysis; and WHEREAS, the parties negotiated the expanded Scope of Work; and WHEREAS, the parties now desire to amend the Agreement to expand the Scope of Work required of RECON to adequately address the project and its alternatives pursuant to CEQA; and NOW, THEREFORE, in consideration of the recitals and the mutual obligation of the parties set forth herein, City, RECON, and Otay Project L.P., agree as follows: 1. That Exhibit "A" to the original agreement is deleted and Exhibit "A-l" is substituted in its place and stead and reads as attached. 2. All other terms and conditions of the Original Agreement shall remain in full force and effect. Next Page is Signature Page(s) 10/14/03 Two-Party Agreement, First Amendment Page I Signature Page To First Amendment To Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and Otay Project, L.P., Applicant For Consulting Work to be Rendered with regard to Applicants' Project (Page 1 of 2) NOW THEREFORE, the parties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista By: Stephen C. Padilla, Mayor Attest: Susan Bigelow, City Clerk Approved as to Form: Ann Moore, City Attorney Dated: Consultant: RECON Environmental Inc. By: Charles S. Bull, President Thxee-Party Agreement Signature Page To First Amendment To Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and Otay Project L.P., Applicant For Consulting Work to be Rendered with regard to Applicants' Project (Page 2 of 2) Dated: Applicant: By: Title: Three-Party Agreement Exhibit A - 1 Reference Date of Agreement: February 26, 2002 Date of First Amendment: October 21, 2003 Effective Date of Agreement: Date of City Council Approval of Agreement City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Consultant: RECON Environmental, Inc. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 1927 Fifth Avenue, Suite 200 San Diego, CA 92101-2358 Applicant: Otay Project L.P. Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Other: A California Limited Liability Company Address: 350 West Ash Street, Suite 730 San Diego, CA 92101 1. Property (Commonly known address or General Description): The property is commonly known as the Otay Ranch Village Two. It consists of approximately 726- acres of undeveloped land in the eastern portion of the City of Chula Vista. The project is located in the Otay Valley parcel of the Otay Ranch General Development Plan (GDP) project area and is surrounded by the Otay Landfill on the west, Otay Ranch Village One (Heritage) on the north, future Otay Ranch Village Six on the east and future Otay Ranch Village Four on the South. Three-Party Agreement 10/14/03 Page 14 2. Project Description ("Project"): The project consists of the preparation of a Second-Tier Environmental Impact Report (EIR) for the Otay Ranch Village Two SPA Plan and Tentative Tract Map. The Otay Ranch Village Two, Three, Planning Area 18b, and Portions of Villages Four and Seven (hereinafter referred to as the Project) SPA Plan would refine the goals objectives, and policies of the Otay Ranch General Development Plan. The SPA Plan would include single and multiple family residential, commercial, industrial, community purpose facilities, community parks, an elementary school and fire station. Tile SPA Plan includes two project level alternatives (herein after referred to as Alternatives "A" and "B")). Both project level alternatives call for development that is less dense than the applicant's preferred project. Alternative "A" would be the most consistent with the Otay Ranch General Development Plan, Resource Management Plan, and Multiple Species Conservation Plan, Alternative "A" would exceed the current GDP permitted residential density but would maintain an existing 1,000 foot buffer surrounding the Otay Landfill, and would not involve grading in Wolf Canyon. Alternative "B" is not consistent with the Otay Ranch GDP in that this alternative exceeds the GDP allowed residential density, residential uses are called out in the required landfill buffer and grading would take place within Wolf Canyon. Alternative "B" would require amendments to the RMP and MSCP preserve boundaries. 3. Entitlements applied for: Proposed discretionary actions for the Property include the following: 1. An amendment to the City of Chula Vista General Plan (GPA); 2. An amendment to the Otay Ranch General Development Plan (GDP); 3. An amendment to the Phase One and Two Resource Management Plan (RMP); 4. An amendment to the County of San Diego Otay Subregional Plan (SRP); 5. Adoption of a Sectional Planning Area (SPA) Plan; and 6. Tentative Tract Map 4. General Nature of Consulting Services ("Services--General"): RECON shall prepare an EIR for Otay Ranch Village Two SPA Plan and Tentative Tract Map to the satisfaction of the Environmental Review Coordinator and to meet State and City environmental review requirements. The EIR shall be a second "tier" EIR from the Final Otay Ranch Program EIR #EIR 90-01 ) and Sphere of Influence Update EIR (#EIR 94-03), Otay Ranch Sectional Planning Area One Final Second-Tier Environmental Impact Report (#EIR 95~01 ), Otay Ranch SPA One And GDP Amendments Final Second-Tier Environmental Impact Report (#E1R 97-03) (hereinafter collectively referred to as the "previous EIRs"). Three-Party Agreement 10/14/03 Page 15 /.~)-~. ~ / 5. Detailed Scope of Work ("Detailed Services"): RECON shall prepare a Second-Tier Environmental Impact Report (EIR) for the Otay Ranch Village Two and Tentative Tract Maps in accordance with the California Environmental Quality Act (CEQA). RECON shall also work closely with the City of Chula Vista staffto ensure that the EIR for the Otay Ranch Village Two EIR shall meet all of the City's needs. The EIR must comply with the current California Environmental Quality Act (CEQA) of 1970 (Public Resources Code Section 21000 et seq.); the current State CEQA guidelines (California Administration Code section 15000 et seq.); the Environmental Review Procedures of the City of Chula Vista; and the regulations, requirements, and procedures of any responsible public agency or any agency with jurisdiction by law. All Detailed Services described herein shall be performed by RECON to the satisfaction of the City's Environmental Review Coordinator. RECON shall consult with all trustee and responsible agencies, agencies having jurisdiction by law and any other person or organization having control over or interest in the proposed project as necessary, to ensure that the EIR is current and complete as to issues raised by such agencies. The Draft and Final EIR shall be prepared in such a manner that they will be meaningful and useful to decision-makers and to the public. Technical data is to be summarized in the body of the report and placed in an appendix. All documents shall be prepared in Microsoft Word 2000. The EIR shall be prepared to include the required sections of an EIR, as set forth in applicable law including State CEQA Guidelines Section 15122 - 15131. The document shall be formatted as directed by the City and shall include, but not be limited to the following sections: · Table of Contents · Executive Summary · Introduction · Project Description · Environmental Setting · Environmental Impact Analysis · Cumulative Impacts · Growth Inducing Impacts · Alternatives · Mitigation Monitoring & Reporting Program · Irreversible Environmental Changes · Effects Found not to be Significant · References, Persons and Agencies Contacted and EIR Preparation RECON shall compile supporting documents into separate volume(s) to be referred to as the Appendices to the E1R. The Appendices shall include the Notice of Preparation (NOP), responses to the NOP and any technical reports and relevant technical information generated for the Three-Party Agreement 10/14/03 Page 16 SPECIFIC TASK DESCRIPTION: In providing environmental services for the Otay Ranch Village Two EIR, RECON shall perform the following tasks: Task 1- Initial Study and Notice of Preparation Task 1 a: Review of Existing Documenta RECON will review previous documents that have been prepared for the Otay Ranch General Development Plan Project, including, but not limited to: 1. Otay Ranch General Development Plan, dated October 1993, and as amended June 1996. 2. Final Program Enviroumental Impact Report (EIR 90-01) for the Ota¥ Ranch General Development Plan, prepared by Ogden, dated December 1992. 3. Otay Ranch Sectional Planning Area One Plan and Annexation Final Second Tier Environmental Impact Report (EIR 95-01), prepared by Cotton/Beland/Associates, dated April 1996. 4. Final Second Tier Environmental Impact Report for the Proposed Otay Ranch Sectional Planning Area One and GDP/SRP Amendments (EIR 97-03). 5. Final Second Tier Environmental Impact Report for the General Development Plan Amendment/Village 11 Sectional Planning Area, Conceptual Tentative Map (EIR 01- 02), prepared by the City of Chula Vista, dated September 2001. 6. Draft Second Tier Environmental Impact Report for Otay Ranch Village Six Sectional Planning Area (SPA) Plan, prepared by RECON, dated September 2001. 7. Transportation Technical Appendix, Final Program Environmental Impact Report, FEIR 90-01, Otay Ranch General Development Plan, dated October 1993. 8. Otay Ranch SPA One Transportation Study prepared by Cotton/Beland/Associates, dated September 1995. (Appendix B). Task lb: Project Initiation RECON will participate in the project initiation meeting for the project. As a result of the project initiation meeting, the schedule outlined in this proposal will be evaluated and coordinated with the needs of the City and the applicant, and points of contact will be clearly identified. RECON will prepare an environmental team contact list and distribute it to all team members. This list will provide names, phone numbers, addresses, and areas of Three-Party Agreement 10/14/03 Page 17 ~;)~-~ ~C~, responsibility, and will include project applicant representatives and City staff, as well as RECON team members. Task 1 c: Initial Study RECON will prepare a draft Initial Study (Deliverable No. 1) using the environmental checklist based on the City of Chula Vista's Environmental Checklist Form or the Environmental Checklist Form in the State CEQA Guidelines (Appendix G) to assess the potential environmental impacts associated with the Project. The Environmental Checklist will form the basis to support which issues will be addressed in detail in the EIR and which issues have been identified as not significant and warrant no further discussion. City staff will review the draft Initial Study and, ifnecessaryprovide comments to RECON. RECON shall incorporate the City's written comments and provide the City with a final Initial Study (Deliverable No.2). Task ] c Deliverables: 1. Draft Initial Study 2. Final Initial Study Task ld: Notice of Preparation RECON will prepare a draft Notice of Preparation (NOP) and Environmental Checklist Form (Deliverable No. 1). City staffwill review the draft NOP and, if necessary provide comments to RECON. RECON shall incorporate the City's comments and provide the City with a final NOP (Deliverable No.2). Comments received during the 3 0-day public review period will be used to finalize the scope of the Draft EIR. Task lb Deliverables: 1. Five (5) copies of the Draft NOP and Environmental Checklist Form 2. Five (5) copies of the Final NOP and Environmental Checklist Form Task 2- First Screencheck Draft EIR and Associated Technical Reports RECON shall prepare a description of existing conditions for, collect data on, and analyze potential impacts to the environmental issues identified in the project-specific Environmental Checklist Form for the Project. The following is an outline of the contents for the Draft EIR. The preparation of technical reports and any modeling required to complete these reports is addressed under the individual issue discussions. · Introduction -- This section of the EIR will describe the project background, purpose and need, and objectives. The introduction will also provide an overview of the CEQA process and related permits and discretionary actions required for implementation of the proposed Project. Three-Party Agreement 10/14/03 Page 18 ~7 '~?i't Project Description -- This section of the EIR will describe in detail the key features of the proposed Project, including the "worst case" scenario for evaluation purposes. The SPA Plan includes two project level alternatives. Both project level alternatives call for development that is less dense than the applicant's preferred project. Alternative "A" would be the most consistent with the Otay Ranch General Development Plan, Resource Management Plan, and Multiple Species Conservation Plan, Alternative "A" would exceed the current GDP permitted residential density but would maintain an existing 1,000 foot buffer surrounding the Otay Landfill, and would not involve grading in Wolf Canyon. Alternative "B" is not consistent with the Otay Ranch GDP in that this alternative exceeds the GDP allowed residential density, residential uses are called out in the required landfill butter and grading would take place within Wolf Canyon. Alternative "B" would require amendments to the RMP and MSCP preserve boundaries. · Environmental Setting -- This section of the EIR will present a discussion of existing conditions within the Property and adjacent land parcels that could be affected by the proposed development. · Environmental Issues -- This section of the EIR will present an analysis of each of the environmental issues identified in the project-specific Environmental Initial Study. The analysis will identify potentially significant environmental impacts that could result from implementation of the proposed Project and proposed mitigation measures to reduce these impacts to below a level of significance. Specific Issues to be Addressed in the Draft EIR: Land Use, Planning, and Zoning .RECON will identify and review existing plans, policies, and ordinances applicable to the Project s~te. Documents to be reviewed include, but are not limited to: · The Chula Vista General Plan and all related elements · The Chula Vista Zoning Ordinance as it relates to the specific property · The Otay Ranch General Development Plan/Subregional Plan (GDP/SRP) and EIR (and supporting documents) · County of San Diego General Plan The land use section of the EIR will address impacts associated with the botmdary reconfiguration and land use changes associated with the proposed SPA relative to the adjacent planned land uses. To address these issues, RECON will: 1. Provide mapping that clearly depicts the adopted Chula Vista General Plan land uses, the Otay Ranch GDPs and affected SPA plans, the Otay landfill, and City zoning designations. RECON will also provide an aerial photograph and project vicinity map to show the existing developed areas in Otay Ranch and the project vicinity. Describe applicable goals and policies from the adopted Otay Ranch GDP/SRP documents and City General Plan. Three-Party Agreement 10/14/03 Page 19 2. Describe and assess any potential for land use compatibility and community character impacts from the proposed land uses. The interface of the proposed land use modifications with the existing, approved, and future designated land uses will be addressed through a compatibility analysis. The compatibility analysis will be based primarily on the discussions presented in the noise, biology, traffic cimulation, adopted General Plan and GDP/SRP policies, and landform alteration/visual quality sections of the EIR. 3. RECON will incorporate the results of the analysis of the potential for the landfill, operated to the immediate west of the project, to impact residential uses on the Village 2 site. An evaluation of the potential adverse effects of placing residential uses within the 1,000-foot buffer established by GDP/SRP. 4. Describe the relationship of the proposed land use changes and policy modifications with the adopted Otay Ranch GDP/SRP plans and policies. Assess the potential for significant land use planning impacts associated with the proposed changes. 5. Develop recomanendations for mitigation measures to reduce potentially significant land use planning/community character impacts. 6. RECON will discuss the environmental effects of all project alternatives upon Wolf Canyon and the effects of the alignment of Heritage Road. 7. RECON will address the environmental impacts associated with the placement of the required community park acreage into Village Four along the southwestern edge of the project. The EIR will also evaluate the Project for compatibility with adjacent land uses and surrounding densities; identify whether the Development has substantial conflicts with the established community character; and identify inconsistencies or conflicts between the Project and the goals, objectives, and policies of any applicable plan policy, ordinance, guideline, or regulation, particularly in relation to the Otay Ranch GDP. The EIR will evaluate the impacts of the proposed physical improvements that could result upon implementation of the proposed development in Village Two. The EIR will include both a plan-to-plan and a plan-to-ground land use analysis. The land use analysis will be contained in the EIR, and a technical report will not be prepared for this issue. Landform Alteration/Aesthetics Currently, the project site and project vicinity are undeveloped. Ultimate development of this area will change its visual character. The EIR will analyze the impact of the proposed development on existing landform and community character. A visual resource analysis will be conducted in conjunction with a site visit evaluation. Key views will be identified and photographed within the viewshed of the site. To document this analysis, RECON will complete the tasks listed below. 1. Provide current color photographs of the project site from key vantage points throughout the area to illustrate the current condition. 2. Provide an impact discussion of the landform alteration necessary for the Project based on Three-Party Agreement 10/14/03 Page 20 the grading plan and the proposed tentative map. Describe earthwork estimates, manufactured slope heights, and grading balance issues. 3. Describe the potential for any visual quality impacts fi.om the on-site uses from area roads. 4. Discuss mitigation measures that may be required to reduce the landform alteration/aesthetic impacts if any are identified. This analysis will be contained in the EIR, and a separate technical report will not be prepared. Photosimulations RECON will prepare computer-aided photosimulations for the applicant's preferred alternative, as well as Alternative "B". These visual simulations will create simulated views as observed fi.om three vantage points adjacent to the site. The vantage point locations will be selected in consultation with City planning, engineering, and landscape staff.. Each simulation will include a photograph of the existing conditions, the graded condition based on the proposed tentative map grading, representation of the built condition pursuant to the SPA plan requirements, and a representation of the built condition with landscaping. RECON will create photosimulations for the applicant's preferred alternative and Alternative "B" by computer modeling in 3-D using grading plans provided in electronic form by the Applicant. To maintain efficiency, site detail will be limited to major slopes, pads, and streets, and different color shading will be used to differentiate these areas. Landscaping will be limited to major screening trees at the project perimeter or in areas where landscaping is proposed for screening. A generic building envelope will be used to illustrate land uses on site. This generic structure will be modified in scale, form, and color to best depict the proposed building envelopes and colors for residential and industrial uses Photographs will be taken at each of the agreed-upon vantage points. A computer-generated view will be created from each of the same locations that the photographs were taken. The computer- generated view of the proposed project will be digitally inserted into the photographs using surrounding landform and features for registration. Transportation, CirCulation, and Access Subconsultant, Linscott, Law, and Greenspan (LLG), will complete the traffic analysis under the direction of RECON for the project and two project level altematives. LLG will first meet with City staff and the Development team to confirm the EIR's project definition(s) and will obtain prior traffic studies prepared for projects in the area. Based on the project definition, LLG will conduct AM/PM peak hour traffic counts, determine the existing AMIPM peak hour Levels of Service (LOS), and obtain the most recent street segment traffic volumes using City, County, and Caltrans records. LLG will then conduct a proj ect-to-ground and plan-to-plan analysis to determine pre-project traffic volumes at key intersections and street segments with the existing street system, add total project traffic to the baseline condition, analyze intersections and street segments, estimate impacts, and recommend mitigation measures as needed. In terms of cumulative traffic impacts, LLG will Three-Party Agreement 10/14/03 Page 21 /~ ._ t~,7 determine the future year scenarios that will likely include Year 2005, 2010, 2015, 2020, and buildout analysis. About 30 intersections and 50 street segments will be analyzed for each scenario, including AM/PM intersection and street segment LOS for each scenario. A total of sixteen traffic scenarios will be analyzed in the traffic impact report that address the project and two project altematives, as well as address anticipated modifications to the Otay Ranch General Development Plan and the Chula Vista General Plan as they relate to project traffic impacts. A Congestion Management Plan (CMP) analysis on the key arterials and freeways will also be conducted in the cumulative traffic analysis. Additionally, LLG will conduct an access analysis for the Development site, a Public Facilities Financing Plan (PFFP) analysis, and will evaluate traffic impacts resulting from the proposed project. The PFFP analysis will also contain a phasing threshold unit analysis for the purpose of determining infrastructure timing and construction. The draft Traffic Technical Report will be reviewed by and subject to the approval of City staff including staff fxom the Traffic Engineering Section. Comments will be provided by the City to LLG and R_ECON. A final Traffic Technical Report will be prepared and summarized in the EIR. If the proposed development has significant traffic impacts, measures will be proposed to mitigate project impacts. The Traffic Technical Report will include a separate section with the list of proposed mitigation measures, as well as a summary of what the levels of service (LOS) would be after mitigation for all impacted roadway segments. A copy of the final traffic technical report will also be included as an appendix to the EIR. Air Quality The analysis of air quality impacts for the EIR will be based on the state and federal ambient air quality standards and on compatibility with the adopted air quality plan for the area. The air quality analysis will evaluate regional impacts and localized air quality impacts, as well as construction- related impacts. RECON will complete an air quality analysis for the proposed project. This analysis will involve the completion of a Caline carbon monoxide hot spot model for each circulation element roadway based on traffic volumes developed by LLG. A receiver will be placed at a distance of 50 feet from each circulation element roadway, and a potential exposure level will be calculated. In addition to the hot spot modeling, a regional discussion of air emissions will be developed based on the proposed land uses. The air quality model URBEMIS will be used to proj eot future emissions generated by the project. This pollutant contribution will be compared to the regional air quality conditions and an impact assessment will be made. The modeling results will be summarized in the EIR. RECON will also prepare an air quality technical report, which will be included as an appendix to the EIR. Noise Based on future site grading identified in the proposed tentative map and the traffic volumes identified in the traffic analysis to be prepared by LLG, a noise analysis will be completed. Community noise analysis will be completed using the Federal Highway Administration Noise Three-Party Agreement 10/14/03 Page 22 ../.~-. Prediction Model STAMINA 2.0 version, to determine the future community noise equivalent levels (CNEL). The future traffic conditions wil[be based on the average daily trips provided in the traffic update for the project. Where necessary, mitigation measures will be recommended, including berms, barriers, or setbacks, to reduce noise levels to below City standards. Because the project includes tentative maps, specific noise analyses will be prepared. These analyses will be completed for all circulation element roadways and will result in designs for noise barriers or setbacks as necessary to achieve the City standards. The results of the acoustical analysis, in the form of a technical report, will be prepared by RECON and provided to City staff for review. RECON will prepare the noise technical report in accordance with the requirements of the City of Chula Vista. City staff will provide any comments on the acoustical analysis to RECON. The results of the acoustical analysis will then be summarized in the EIR and the full written technical report will be included as an appendix to the EIR. Cultural Resources RECON will provide a third-party review of the cultural resource report provided by the applicant and, if necessary provide comments. RECON will review subsequent drafts of the revised cultural resources report to ensure that all comments fi.om staffand RECON have been adequately addressed. RECON will incorporate the results of the final cultural resource report into the EIR. Paleontological Resources The Property is located within the upper sandstone unit of the Otay Formation, which has produced important vertebrate fossil remains. The EIR will address paleontological impacts and recommend mitigation including but not limited to on-site monitoring during grading, recovery and salvage of remains in a timely manner, and methods for retaining all field notes, photographs, and maps. Biological Resources The majority of the Village Two area has been subjected to agricultural use for decades. The City's Otay Ranch Resource Management Plan (RMP) identifies several sensitive animal species on site as well as limited areas of coastal sage scrub habitat. While the continuous agricultural disturbance has limited the potential for sensitive species on the property, RECON will provide a third-party review of the biological resources report provided by the applicant and, if necessary provide comments. RECON will review subsequent drafts of the revised biological resources report to ensure that all comments from staff and RECON have been adequately addressed. RECON will also evaluate the Village Two site in the context of the Resource Management Plan (RMP/RMP2) prepared for the Otay Ranch GDP and for conformance with the City's draft MSCP Plan. The results of the final biological report provided by the applicant will be summarized in the EIR and the full written technical report will be included as an appendix to the EIR. 10/14/03 Page 23 _ .~ ~ ~?(~ Three-Party Agreement Agricultural Resources The Otay Ranch Program EIR found that the conversion o f agriculture lands represented a significant adverse impact. RECON will summarize the impact analysis/mitigation requirements for agricultural resources pursuant to the Program EIR, and evaluate the Agricultural Plan prepared as part of the SPA plan. Hydrology, Drainage, and Urban Stormwater Runoff This section of the EIR will be prepared based on the drainage studies provided by the project applicants. The drainage plans will be reviewed and approved by the City of Chula Vista Engineering Department and incorporated into the EIR. RECON will complete the tasks listed below: 1. Review the existing hydrology and drainage information contained in the previous Program EIR, adjacent Otay Ranch Village SPA Plan EIRs, and other secondary sources in order to describe the existing watershed/floodplain, storm drains, drainage improvements, and detention features that exist or are planned within the project area. RECON will also, contact the City of Chula Vista Engineering Department to verify the current status of planned and approved drainage improvements in the project area. 2. Based on information provided by the Applicant prepared in conjunction with the SPA Plan and tentative map/grading plan, RECON will determine the potential for on- and off-site hydrologic impacts associated with the proposed project. RECON will also, describe any modifications to the drainage features that would be anticipated to accommodate the proposed land use changes. 3. Describe necessary National Pollutant Discharge Elimination System (NPDES) permitting requirements and best management practices (BMPs) based on consultation with the City of Chula Vista Engineering Department. A list of BMPs appropriate and drainage fee requirements for the project will be included as mitigation measures in the EIR. The mitigation measures will be developed consistent with Order No. 2001-01 CNPDES No. CAS0108758). Geology and Soils The geology and soils section of the draft E[R will be prepared based on the geotechnical studies provided by the project applicant to the City of Chula Vista. RECON will review the technical study prepared for the project and summarize the results in the geology and soils section of the EIR. Recommendations for detailed geotechnical evaluations and possible mitigation alternatives (e.g., deep foundations, stone columns) will be included in the EIR. Three-Par~y Agreement 10/14/03 Page 24 Landfill Study Subconsultant Environ will complete a Landfill Study under the direction of RECON, and will complete the following tasks: 1. Environ will provide technical guidance and peer review of the Health Risk Assessment provided by applicant's consultant SCS Engineers, as well other technical documents provided by applicant with regard to landfill issues. This work shall be completed by no later than December 1, 2003. 2. a) Upon written request of the City's Environmental Review Coordinator, Environ shall perform an updated human health risk assessment (HRA) of the potential affects of operations at and emissions from the Otay Landfill to future occupants of Otay Ranch Villages 2, 3 and Planning Area 18b. The HRA will evaluate maximum cancer, chronic, and acute health risks to future residents and employees. For the purposes of liRA, it will be assumed that residential development could occur within the 1,000-foot buffer zone. However, the impact analysis will not be limited to the 1,000-foot buffer zone (i.e., maximum impacts could occur outside of the 1,000-foot buffer) or limited to residential uses. The HRA will consist of: i. Estimation of all potential toxic emission sources including, but not limited to: landfill gas (LFG), the LFG flare, the LFG fired internal combustion (IC) engine, and fugitive dust emissions (trace metals in PM~0). Emission estimates will consider the total landfill operations over time, not just operations associated with the landfill expansion. ii. Dispersion of the hazardous emissions to the surrounding community to estimate concentration of hazardous substances at sensitive receivers. iii.Estimation of the potential cancer (including cancer burden) and non-cancer health risks resulting from the hazardous pollutant emissions. b) It is assumed that the applicant will provide all raw data (including emission calculations, source parameters, and other site-specific data) in electronic format to ENVIRON. A screening level air dispersion model, SCREEN3, approved by the USEPA, will be used to simulate the air dispersion. This model provides conservative estimates of the downwind concentrations by using the worst-case meteorological data, which are not site-specific. c) The HRA shall consist of one document and shall include an odor impact analysis, nuisance dust impact assessment, and LFG migration evaluation. d) This work shall be completed on or before eight weeks from the written request referred to above. 10/15/03 Page 25 /-"~'~) ~,[/ Three-Painy Agreement 3. Prepare an assessment of odor impacts to future residents of Otay Ranch Villages 2, 3, and Planning Area 18b due to odorous emissions from the Otay Landfill. As with the HRA, it will be assumed that residential or industrial development could occur within the 1,000-foot buffer zone. The odor impact assessment will be a quantitative analysis that includes: i. Estimation of the emissions of odorous substances ii. Dispersion of the odorous substance emissions iii. Comparison of projected odorous substance concentrations at potential receivers to established odor thresholds. To complete the odor impact assessment ENVIRON will estimate the emissions of odorous substances (such as hydrogen sulfide) using available emission factors and other engineering calculations. The SCREEN3 model will be used to simulate the ground level maximum 1- hour concentrations of the odorous substances. The maximum 1-hour concentrations will be converted to concentrations at shorter averaging time (such as 3-minute averages) using the Turner equation, then compared with published odor thresholds. 4. Evaluate potential nuisance (soiling) dust impacts on the project. Nuisance dust is typically larger in diameter than PMm and results from heavy equipment operations and wind events at the landfill. Analysis will estimate emissions of soiling dust and evaluate the potential for nuisance dust impacts to surrounding receivers, particularly within the 1,000-foot buffer. Dispersion modeling of the soiling dust emissions will be used as necessary. ENVIRON will use AP-42 emission factors and other engineering calculations to estimate the fugitive emissions of nuisance dust. Dispersion modeling will be performed to predict the impacts to the surrounding receptors. 5. Evaluate the potential for LFG migration beyond the landfill boundary and the potential impacts to residential and industrial uses adjacent to the landfill (including within the 1,000- foot buffer). 6. Evaluate the LFG control system, taking into account the landfill liner structure, and the design of the LFG collection system. This evaluation will be a qualitative evaluation. 7. The tasks set forth in 4, 5, and 6 above shall be completed by no later than December 1, 2003. Public Services and Utilities The EIR will document available services. A log of all contacts will be made and references will be included in the EIR. RECON will complete the following tasks: I. Obtain the PFFP and incorporate a discussion of phasing of facilities development into the EIR. 2. Discuss park and recreation, library, schools, solid waste, gas, and electricity demands, and assess the adequacy of facilities. Describe mitigation measures, if necessary. Three-Party Agreement 10/14/03 Page 26 ~:~ .~ 3. Contact the City of Chula Vista Engineering Department and the project engineer to document the current capacity/sizing of the sewer lines, current sewage generation rates for residential use, and any additional sewer facilities in the project area that were discussed in previous EIRs. 4. .Describe the sewage to be generated by the project and discuss any potential sewer capacity impacts and mitigation measures, if necessary. 5. Contact the Otay Water District to assess the issues associated with the provision of potable and reclaimed water. Summarize the impact and mitigation requirements technical studies for water and recycled water provided by the project applicants in the body of the EIR. RECON will discuss Senate Bil1221 asit mayapplytothisproject. This legislationpertains to the requirement for written verification of water supplies for tentative maps of more than 500 dwelling units. 6. Based on review of existing documents and contact with the Chula Vista police and fire departments, describe current and anticipated response times, facilities, and personnel. Determine whether the project will comply with the City of Chula Vista Thresholds Standards Policy and describe mitigation measures that would be required for the project. The EIR analysis will address services and facilities related to sewer and water, police, fire, emergency medical service, recreation, schools, library, solid waste disposal, gas and electricity, and telephone and cable. Other public facilities, such as transportation and drainage facilities, will be appropriately referenced. In addition, the need for on-site and off-site public facility improvements will be identified, impacts to public services and utilities will be assessed, and appropriate mitigation, if required, will be recommended. RECON will also prepare and distribute public service letters to all public service providers that are planned to serve the Village Two project. The responses to these letters, as well as the information contained in the PFFP, will be summarized in the EIR text. No technical report will be prepared for this issue. Compliance with City Threshold and Standards Policy and Findings of Fact In an effort to preserve the City's quality of life, the City adopted a Growth Management Ordinance (Chapter 19.09 of the Municipal Code) that contains Quality of Life Threshold Standards for 11 facilities and improvements. These include fire and emergency medical service, police, traffic, parks and recreation, drainage, libraries, air quality, economics, schools, and sewer and water. The scope of work for this section of the E1R will include the following: 1. Describe the City's threshold goals and standards for each of the 11 facilities. 2. Based on the analyses presented in the public services and facilities section of the E]R, summarize the project's consistency with the established thresholds standards and determine if the requirements have been satisfied. 10/14/03 Page 27 ~ _~ Three-Party Agreement Alternatives RECON will examine a reasonable range of alternatives that could feasibly attain the basic development objectives, including alternatives that could reduce significant environmental effects as identified in the environmental analysis of the project. This section of the EIR will include the two scenarios for the No Project Alternative and development consistent with the existing plan. In addition, a range of other alternatives may be included that achieve the objectives of the project while reducing the impacts identified in the body of the EIR. These alternatives will be developed during the project initiation phase and will be refined in conjunction with the assessment of potential impacts and needed mitigation during the environmental review process. Each alternative analyzed in the EIR will include a "plan-to-ground" and "plan-to-plan" analysis. Cumulative Impacts The cumulative discussion in the EIR will include projects currently approved and reasonably anticipated in this area. This section of the EIR will consider and describe adopted plans and polices that are in place which would mitigate cumulative impacts, and will be consistent with the cumulative analyses presented in the recently approved EIRs for Otay Ranch Villages 6 and 11, and EastLake 11I, and the currently initiated Village 12 review. Indirect cumulative impacts and compliance with the City of Chula Vista's adopted Threshold Standards and other applicable policies and programs will also be evaluated. Other Mandatory CEQA Sections RECON will address all required CEQA sections, including all sections outlined above, in addition to other mandatory sections, including Growth Inducement and Effects Not Found to be Significant. The proposed Project will be evaluated for its potential to induce economic or population growth through construction of additional housing in the surrounding environment, or by the provision of community services and facilities to serve new development. RECON will also provide a summary of those Effects Found Not to be Significant, with rationale provided as to how the conclusion of non-significance was reached. Additionally, hreversible Environmental Changes will be discussed, as will Unavoidable Significant Impacts. Task 2: Deliverables 1. Twenty-five (25) copies of the First Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The First Screencheck Draft EIR shall be prepared in Microsoft Word 2000 and shall be printed at 1.5 spacing. Task 3 - Second Screencheck Draft EIR RECON will address City staff and legal counsel comments on the First Screencheck EIR and prepare and submit twenty-five (25) copies of the Second Screencheck Draft EIR to the City for review and comment. T~ee-Party Agreement 10/14/03 Page 28 ~ ~5)D/ Task 3: Deliverables 1. Twenty-five (25) copies of the Second Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The Second $creencheck Draft EIR shah be prepared in Microsoft Word 2000 and shaH be printed at 1.5 spacing. Task 4 - Third Screencheck (Administrative) Draft EIR RECON will address City staff and legal counsel comments on the Second Screencheck Draft EIR and prepare and submit five (5) copies of the Third Screencheck (Administrative) Draft EIR to the City for review and comment. Task 4: Deliverables 1. Five (5) copies of the Third Screencheck Draft EIR and Technical Appendices, provided in three-ring binders. The Third Screencheck Draft EIR shah be prepared in Microsoft [Ford 2000 and shah be printed at single spacing. Task 5- Public Review Draft EIR/NOA/NOC RECON will incorporate City staff and legal counsel comments on the Third Screencheck (Administrative) Draft EIR and then prepare the public review Draft EIR acceptable to the City's Environmental Review Coordinator. RECON will also prepare the Notice of Availability (NOA) and Notice of Completion ('NOC). Task 5: Deliverables 1. Seventy-five (75) copies each of the NOA, NOC, Draft EIR and Appendices, including ten (10) copies of the documents provided in three-ring binders and the remainder bound. Task 6 - Candidate Draft CEQA Findings of Fact/Statement of Overriding Considerations (SOC) RECON will prepare Draft Candidate CEQA Findings of Fact and, if necessary, a Statement of Overriding Considerations for review by City of Chula Vista staff and legal counsel. The Findings will specify which mitigation measures have been incorporated into the project and those measures that have not, and will explain why certain measures have been found to be infeasible. The Findings will also identify feasible project alternatives that could reduce adverse environmental effects but are not being implemented, with an explanation as to why they are considered to be infeasible. Task 6: Deliverables 1. Five (5) copies of the draft Candidate Findings of Fact and Statement of Overriding Considerations. 10/14/03 Page29 53~:~~3~ Three-PaxtyAgreement Task 7 - Response to Comments/Final EIR/MM~OD Task 7a: Responses to Comments Following the close of public review, RECON will meet with City staff and review all comments received. RECON shall prepare draft responses to comments and associated revisions to the Draft EIR. RECON will submit five (5) copies of the draft responses to comments and amended EIR sections to the City for review by City of Chula Vista staff and legal counsel. RECON shall revise the draft responses to comments and amended EIR sections based on comments submitted by City staffand legal counsel. RECON shall then submit the revised draft responses to comments and amended EIR sections for review by the City. Any changes to the responses to comments and amended EIR sections shall be subject to the approval of the City's Environmental Review Coordinator. If additional studies or analyses are requested by the City as a result of the comments received, RECON shall complete those studies based on the receipt of authorization from the City's Environmental Review Coordinator. Task 7a: Deliverables 1. Five (5) copies of the draft responses to comments and associated revisions to the Draft EIR 2. Five (5) copies of the revised draft responses to comments and associated revisions to the Draft EIR Task 7b: Mitigation Monitoring and Reporting Program The Mitigation Monitoring and Reporting Program (MMRP) will be developed at the draft EIR stage and finalized after the close of public review. It will list and identify specific monitoring activities that would be required on an issue-by-issue basis, and will establish a reporting system and criteria for evaluating the success of the mitigation measures. In addition, the MMRP will outline the appropriate time for mitigation, of impacts, such as grading permits, final maps, landscape plans, or other discretionary actions. Task 7b: Deliverables 1. One (J~) copy of the draft MMRP 2. One (1) copy of the final MMRP (finalized after the close of public review) Task 7c: Final Candidate CEQA Findings of Fact and Statement of Overriding Considerations Should the City determine that additional changes are needed to the draft Candidate CEQA Findings of Fact and Statement of Overriding Considerations as a result of the comments received during the public review period, RECON shall revise the draft Candidate Findings of Fact and Statement of Overriding Considerations to incorporate these changes. Any Three-Party Agreement Page 30 changes to the Findings of Fact and Statement of Overriding Considerations shall be subject to the approval of the City's Environmental Review Coordinator. Task 7c.; Deliverables l. Five (5) copies of the final Candidate CEQA Findings of Fact and Statement of Overriding Considerations Task 7d: Final EIR RECON will prepare a Final EIR, MMRP, Appendices, Candidate CEQA Findings of Fact and Statement of Overriding Considerations (if applicable) and the Mitigation Monitoring and Reporting Program (MMRP). RECON will provide seventy-five (75) copies of the final EIR and seventy-five (75) copies of the EIR technical appendices to the City. RECON will also submit a full version of the Final EIR in electronic format (Microsoft Word). In addition, a draft Notice of Determination (NOD) and Califomia Department of Fish and Game (CDFG) fee certification letter for the project shall be submitted by RECON to the City in preparation for filing with the County Clerk's office, upon project approval. Task 7d: Deliverables 1. Seventy-five (75) copies of the Final EIR, MMRP, Appendices, and Candidate CEQA Findings and Statement of Overriding Considerations (if applicable), including ten (1 O) copies of the Final EIR provided in three-ring binders and the remainder bound One (1) copy of a draft NOD and CDFG fee certification letter. 2. One (1) reproducible master copy of the Final EIR suitable for reproduction on City equipment and not three-hole punched,, and One (1) computer disk copy or CD ROM version of the Final EIR and related documents that can be read by Microsoft Word 2000. Task 8 - Hearing/Meetings Charles Bull, Project Manager will attend, at the direction of the City's Environmental Review Coordinator, project team meetings throughout the Project duration. These include the following meetings: ,, Project initiation meeting; · Project workshop; Scoping Meeting; · Weekly meetings with City staff; · Coordination with County staff · A Resource Conservation Commission meeting; · A Planning Commission hearing on the draft E/R; · A Planning Commission hearing on the final EIR and Candidate CEQA findings; · A Board of Supervisors hearing (if necessary); and · A City Council hearing on the final EIR and Candidate CEQA findings. 10/14/03 Page 31 ~}, ~ ~ Three-Party Agreement RECON will attend a total of forty (40) weekly meetings with City staff. If additional meetings are needed, they will be billed at a time and materials basis at an agreed to cost. Additional meetings requested by the City will be considered additional work pursuant to Section 3.2.2 of this Agreement. Task 9- Tentative Map Processing If determined necessary by the Environmental Review Coordinator, RECON will conduct additional environmental review (i.e. Addendum) for the Village Two tentative map. The Environmental Review Coordinator will determine the appropriate environmental document at the time the final tentative map is processed. If the Environmental Review Coordinator determines that an Addendum is not the appropriate document, then additional work on a document other than an addendum shall be processed pursuant to Section 3.2.2 of the contract. 6. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Draft NOP and Initial Study March 12, 2002 Deliverable No. 2: Final NOP and Initial Study March 20, 2002 Deliverable No. 3: Draft Technical Reports (traffic, air quality, and noise) April 16, 2002 Deliverable No. 4 First Screencheck EIR July 22, 2002 Deliverable No. 5: Second Screencheck EIR August 30, 2002 Deliverable No. 6: Third Screencheck EIR October 3, 2002 Deliverable No. 7: Public Review Draft EIR/NOC/NOA October 18, 2002 Deliverable No. 8: Draft Findings of Fact and Statement of November 16, 2002 Overriding Considerations Deliverable No. 9: Draft EIR Response to Comments/MMRP November 16, 2002 Deliverable No. 10: Final EIR/MMRP/Final Findings of Fact December 13, 2002 and SOC Draft Notice of Determination/ CDFG fee letter Three-Party Agreement 10/14/03 Page 32 Deliverable No. 11: Meetings and Hearings Per Task 8 Dates for Completion of all Consultant Services: Date of City Council approval of environmental documents, or completion of all tasks to the satisfaction of the City's Environmental Review Coordinator, whichever is later. 6.a Such time limits as set forth above may be extended by the City's Environmental Review Coordinator in her sole discretion which extension shall not constitute a waiver by the City to demand performance by consultant under the terms of this agreement. 7. Documents to be provided by Applicant to Consultant: (X) site plans (X) tentative tract maps ( ) architectural elevations (X) project description. (X) other: SPA Plan, PFFP, Technical Reports (i.e. Geotechnical Investigation, Drainage Study, Water Service Study, Sewer Service Study, Biological Resources Report and Cultural Resources Report), and related GDP documents 8. Contract Administratom. City: Marilyn R.F. Ponseggi, Environmental Review Coordinator Applicant: Kim Kilkenny, President, Otay Project, L.P. Consultant: Charles Bull, President, RECON Inc. 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. ) Category No. 1. Investments and sources of income.' Category No. 2. Interests in real property. Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Category No. 4. Investments in business entities and sources of income, which engage in land development, construction or the acquisition or sale of real property. ). Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with 10/14/03 Page 33 ~3 .,qc~ Three-Party Agreement 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: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage). 11. Permitted Subconsultants: Linscott, Law & Greenspan 1565 Hotel Cimle South, Suite 310 San Diego, CA 92108 (619) 299-3090 Linscott, Law, and Greenspan (LLG) will complete the traffic analysis under the direction of RECON. Environ 2010 Main Street, Suite 900 h-vine, CA 92614-7215 (949) 261-5151 Environ will complete the Landfill Study under the direction of R_ECON. Three-Party Agreement 10/14/03 Page 34 _Exhibit B Additional Recital~ WHEREAS, pursuant the California Environmental Quality Act (CEQA) the Environmental Review Coordinator has determined that the proposed Otay Ranch Village Two Sectional Planning Area Plan and Tentative Tract Map requires the preparation of an EIR; and WHEREAS, it was determined by the Director of Planning and Building that staff has neither the available time or expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds for the consulting services necessary for the preparation of the environmental documents; and WHEREAS, a Request for Proposal was distributed to 28 persons or firms included on the list of qualified Environmental Consultants, and six proposals were received by the City; and WHEREAS, a Selection Committee was established pursuant to Section 2.56.110 of the Municipal Code to review the proposals and conduct interviews of the most qualified firms based on established evaluation criteria; and WHEREAS, the Selection Committee interviewed the top three firms and recommended RECON Inc. to perform the required services for the City; and WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in Section 6.5.2 of the Environmental Review Procedures; and WHEREAS, the proposed contract with RECON Inc. to provide consultant services would be in an amount not to exceed $462,758 with an additional $115,689.50 for additional services should they be necessary. Three-Party Agreement 10/15/03 Page 35 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. ( ) Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: (X) Single Fixed Fee Amount: $462,758.00 EIR for the Otay Ranch Village Two SPA Plan and Tentative Tract Map. Milestone or Event Percent and Amount of Fixed Fee 1. Sigmng of this agreement by all parties and upon the 10% ($46,275.80) request of the consultant. 2. Submittal of Initial Study and NOP 10% ($46,275.80) 3. Submittal of First Screencheck Environmental Document* 30% ($138,827.40 4. Commencement of Public Review 25% ($115,689.50 5. Completion of Final Environmental Document 15% ($69,413.70 6. Retention Percentage - See Section D. below 10% ($46,275.80) 7. Twenty-five Percent Contingency Fee** $115,689.50 *For purposes of payment the first screencheck shall completely address and analyze all issues identified in the detailed scope-of-work (described in Exhibit "A", Section 5) to the satisfaction of the Environmental Review Coordinator. Payment shall not be made until the City's Environmental Review Coordinator determines that a complete screencheck document has been submitted. **The Environmental Review Coordinator in her discretion independently or upon request fi.om the Consultant, fi.om time to time, may negotiate additional services to be performed by the Consultant under this Agreement in order to cover unforeseen issues that may be identified during the preparation of the environmental document ("Additional Services"). The cost of Additional Services in connection with the environmental document shall not exceed 25% of the total contract amount ($462,758). Three-Patty Agreement 10/14/03 Page 36 ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. ( ) 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 heminbelow 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 $462,758 (plus 25% 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. Three-Party Agreement 10/14/03 Page 37 Consultant's Rate Schedule Hourly Category of Employee Rate Principal $127.00 Associate $87.00 Assistant $78.00 Production Supervisor $53.00 Graphics $52.00 Three-Party Agreement 10/14/03 Page 38 CONSULTANT'S COST BREAKDOWN Task Total Cost Task 1 Initial Study/Notice of Preparation Initial Study Preparation 2,828 NOP Preparation 1,438 Additional Work for Project Alternatives 1,840 Subtotal 6,106 Task 2 Prepare Technical Reports and First Screencheck Land use 9,677 Landform (includes photosimulations for Alternative One and Two) 27,407 Traffic (EIR section) 8,097 Traffic Impact Analysis (prepared by LLG) 141,055 Air Quality 6,108 Landfill Study 75,000 Noise 14,531 Cultural Resources 2,644 Paleontological Resources 520 Biological Resources 8,998 Agriculture 960 Hydrology 2,354 Geology 2,022 Public Services 8,714 Thresholds Analysis 6,011 Other Sections 4,587 Alternatives 13,574 Subtotal Task 2 $332,259 Task 3 Second Screencheck Draft Revise documents 26,267 Task 4 Third Screencheck Draft (Administrative Draft) Revise documents 14,338 Task 5 Public Review Draft EIR/NOA/NOC Final Edits and Distribution 4,184 Task 6 Candidate Draft Findings and SOC Prepare, Revise and Finalize 2,138 Task 7 Responses to Comments/Final EIR/MMRP~OD Prepare drafts, revise and finalize 19,892 Task 8 Meetings and Hearings Attendance 24,924 Task 9 TM Processing (if necessary) Preparation of Environmental Document (i.e. Addendum) 4,600 Subtotal EIR $434,758 Three-Party Agreement ! 0/! 5/03 Page 39 Expenses 28,000 TOTAL $462,758 Materials Separately Paid For by Applicant - Cost or Rate ( ) Materials NA Reports Copies ( ) Travel NA ( ) Printing NA ( ) Postage NA ( ) Delivery NA ( ) Long Distance Telephone Charges NA (X) Other -SANDAG Model Run Fees Actual Deposit (X) Deposit Amount: $462,758 - As agreed to by the Applicant, 100% of the Deposit ($218,458) is to be made by Otay Project, L.P. Applicant agrees to deposit within 10 days if City requests to do so, a sum (estimated to be up to $3,000) for additional Materials separately paid for by the Applicant. (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, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. ( ) 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 alter billing, City may, at its option, use the Deposit to pay said billing. Three-Party Agreement 10/14/03 Page 40 (X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (X) Other: Milestone B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End oftheMonth (X) Other: Upon Completion of Milestone C. City's Account Number: To be assigned after agreement is processed. D. Security for Performance ( ) 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: ( ) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (X) Completion of All Consultant Services to the satisfaction of the Environmental Review Coordinator. ( ) Other: Tbxee-Par~y Agreement 10/14/03 Page 41 COUNCIL AGENDA STATEMENT Item: (~ Meeting Date: 10121/03 ITEM TITLE: Resolution of the City of Chula Vista Council approving a three- party agreement between the City of Chula Vista; RECON, consultant; and McMillin Rolling Hills Ranch, LLC, Applicant; for biological mitigation monitoring and environmental services to be rendered for the Rolling Hills Ranch Sectional Planning Area (SPA) Plan, and authorizing the mayor to execute said agreement. SUBMITTED BY: Acting Director of Plarming and Bullding~ REVIEWED BY: City Manager /Sths Vote: Yes No X ) In compliance with State Law, a mitigation monitoring and Reporting Program (MMRP) has been adopted by the City Council for the Rolling Hills Ranch (formerly Salt Creek Ranch) Sectional Planning Area (SPA) Plan. State Law requires public agencies to adopt such programs to ensure effective implementation of mitigation measures. This report requests that the City Council approve the proposed contract with RECON for a total of $49,936 to provide consulting services as the Environmental Monitor Specialist for the Rolling Hills Ranch SPA Plan EIRs 89- 03 and 91-03 for a period of five years. RECOMMENDATION: That the City Council adopt Resolution approving a three-party agreement between the City of Chula Vista; RECON; and McMillin Rolling Hills Ranch, LLC; for environmental consulting services for biological mitigation monitoring services to be rendered for the Rolling Hills Ranch SPA Plan EIRs 89-03 and 91-03, as well as the implementation of the project area specific management directives. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Background On September 25, 1990 the City Council certified FEIR-89-03 and adopted the accompanying mitigation monitoring and Reporting Program, and on March 24, 1992 certified FSEIR-91-03 and adopted the accompanying mitigation monitoring and Reporting Program (MMRP). In accordance with CEQA, FEIR 89-03 and FSEIR 91-03 included MMRPs. In accordance with Page 2, Item No.: (~ Meeting Date: 10/21/03 the requirements of the City of Chula Vista MSCP Subarea Plan, area specific management directives (ASMDs) for the short and long term management of preserve areas have been also drafted for the project. The Mitigation Monitor, under the supervision of City staff, will ensure compliance with the provisions of the area specific management directives. Grading for RHR Phase III is about to commence. At this time, City staff resources are insufficient to perform all monitoring tasks; therefore, staff recommends that a consultant be retained to assist in the implementation of the MMRPs. City staffin the Environmental Planning Section will supervise the biological mitigation monitoring tasks in the adopted MMRPs for Rolling Hills Ranch. This consultant would function as the Environmental Monitor Specialist (biological) for the City of Chula Vista. The Environmental Monitor Specialist will provide additional services as needed related to Rolling Hills Ranch SPA Plan EIRs, including overseeing the implementation of the applicable project conditions, and assistance with field monitoring. Consultant Services Selection Process Staff has complied with the City's consultant selection process in selecting an environmental consultant for this contract. City staff sent out 19 requests for proposal to qualified consulting firms for the Rolling Hills Ranch biological mitigation monitoring contract. Staff received a total of four proposals. Based on a review of qualifications, the Environmental Review Coordinator has determined that RECON has demonstrated a unique and comprehensive familiarity with the project area and the City's biological mitigation monitoring procedures. Additionally, RECON has demonstrated unique qualifications to serve as the Consultant for this contract because of their experience and expertise with monitoring projects of a similar nature, experience with the resource agencies, grasp of the project's complexities, and project experience within this region. RECON is a San Diego based conlpany. The Consultant represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City within the necessary time frames. The Environmental Review Coordinator has negotiated the details of these agreements in accordance with procedures set forth in Section 6.5.2 of the Environmental Review Procedures. RECON will have contracts with the City with a combined total exceeding $50,000 (approximately 1.5 million dollars) within the upcoming 12 months; therefore, Council approval is necessary. RECON is currently working on a variety of projects including the General Plan EIR, biological studies related to the Multiple Species Conservation Plan (MSCP), mitigation monitoring for Eastlake III and San Miguel Ranch, as well as mitigation monitoring for the Salt Creek Sewer project. Page3, Item No.: ~ Meeting Date: 10/21/03 Scope-of-Work RECON will function as the RHR Environmental Monitor Specialist (biological) for the City of Chula Vista under the supervision of the City's Environmental Review Coordinator. The responsibilities of the Environmental Monitor Specialist will include the review of the RHR Subarea III grading plans, final maps, improvement plans and building permits for conformance to the requirements of the biological mitigation monitoring program. The Environmental Monitor will also be responsible for implementing the project ASMDs, attending team meetings, as well as monitoring compliance for several technical issues such as air quality, noise and cultural resources. Contract Payment: The amount for this three-party agreement is $49,936. The project applicant will also reimburse any City staff time associated with implementation of the MMRPs through a separate deposit account. FISCAL IMPACT: There would be no impact to the General Fund. The project applicant, McMillin Polling Hills Ranch, LLC., through a deposit account, will pay the biological mitigation monitoring consulting fees. Attachments 1. Resolution of Approval of contract 2. Three Party Agreement RESOLUTION NO. RESOLUTION OF THE CITY OF CHULA VISTA COUNCIL APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; RECON, CONSULTANT; AND MCMILLIN LAND DEVELOPMENT, APPLICANT, FOR BIOLOGICAL MITIGATION MONITORING AND ENVIRONMENTAL SERVICES TO BE RENDERED FOR THE ROLLING HILLS RANCH SECTIONAL PLANNING AREA (SPA) PLAN, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT. WHEREAS, on September 25, 1990, the City Council certified FEIR-89-03 and adopted the accompanying Mitigation Monitoring and Reporting Program (MMRP), and on March 24, 1992 certified FSEIR-91-03 and adopted the accompanying Mitigation Monitoring and Reporting Program (MMRP); and WHEREAS, the implementation of the MMRP(s) and project area specific management directives (ASMDs) necessitates the expertise of an Environmental Monitor Specialist (biological) and requires the hiring ora Consultant; and WHEREAS, it was determined by the Director of Plamfing and Building that staff has neither the available time or expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds necessary for the biological mitigation monitoring services; and WHEREAS, a request for proposal was distributed to 19 qualified consulting firms in accordance with the City's informal bidding process, and four proposals were received by the City that were responsive to the request; and WHEREAS, the City is in immediate need of an experienced CEQA consultant that is familiar with the City's policies and procedures; and WHEREAS, the Consultant is uniquely qualified to serve as the Consultant for this project based on their projects of a similar nature, their experience with the resource agencies, their grasp of the project's complexities, and the firm's project experience within this region; and WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in Section 6.5.2 of the Environmental Review Procedures; and WHEREAS, the proposed contract with RECON to pro:vide biological mitigation monitoring services would be in an amount not to exceed $49,936. NOW THERERFORE BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a three-party agreement between the City of Chula Vista, RECON ("Consultant") and McMillin Land Development ("Applicant") for consulting services related to biological mitigation monitoring for McMillin Rolling Hills Ranch Sectional Planning Area (SPA). BE IT FURTHER RESOLVED that the Mayor of the City of City of Chula Vista is hereby authorized and directed to execute said Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by James D. Sandoval Ann~~~C~]'jfl ~ Acting Director of Planning and Building City Attorney J:\Planning~SteveXP~Env. documents\RHR subarea III\RESOconsultant.doc THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~ Ann Moore City Attorney Dated: Three party Agreement between the City of Chula Vista RECON, Consultant and McMillin Land Development, Applicant for consulting work Bo be rendered with regard to Applicant's Project. Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and McMillin Rolling Hills Ranch, LLC, Applicant For Consulting Work to be Rendered with regard to Applicants' Project 1. Parties. This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the attached Exhibit A as "Consultant", RECON Environmental Incorporated (herein after referred to as "RECON") whose business form and address are indicated on the attached Exhibit A, and the persons collectively designated on the attached Exhibit A as "Applicant", McMillin Rolling Hills Ranch, LLC, whose business forms and addresses are indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations 2.1. WarranWofOwnership. 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 ofthe 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 t°, and under the direction of, the City. 5/22/02 Three-Party Agreement Page 1 2.6. Additional facts and circumstances 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 Applicant. Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled "General Nature of Consulting Services", ("General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services descr/bed 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 manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation o f 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 Three-Party Agreement 5/22/02 Page 2 checked, and upon receipt of such payment.by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liable for the compensation unless it receives same fi.om 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 fi.om 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, fi.om time to time reduce the Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Payment of Compensation by Applicant. 3.3.1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3.1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this agreement. Three-Party Agreement 5/22/02 Page 3 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fired. 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 herein 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. WithholdingofProcessing. 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 Employers Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4. l.2. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and 5/22/02 Three-Party Agreement Page 4 Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public, "Cross-liability Coverage"). 4.1.3. Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coverage. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by 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 Commemial 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. Three-Party Agreement 5/22/02 Page 5 5.2. Property Access. The Applicant hereby grants permission to the City and Consultant to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of the Applicant. Consultant shall promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 5.3. Communication to Consultant. Applicant shall not communicate directly to the Consultant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the 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. l. 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 5/22/02 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 of Consultant's economic Interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this Agreement. 7.4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 7.5. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 7.6. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate .family members, nor Consultant's employees or agents ("Consultant Associates") presently have any ~nterest, 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. 5/22/02 Three-Party Agreement 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 fight 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 heroin, 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 exemise any control 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 first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions of which are incorporated by this reference as if set fully set forth herein. Three-Party Agreement 5/22/02 Page 8 11. Hold Harmless and Indemnification. 11.1. Consultant to Indemnify City re. Injuries Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees fi.om 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 fn'ms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attomeys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Also covered is liability arising fi.om, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising fi.om Consultant's professional errors and omissions, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, fi.om and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except those claims arising from the negligence or willful misconduct of City, it officers or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited bY any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 11.2. Applicant to Indemnify City re. Compensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and fi.om any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, employees, agents, or representatives of the City ("City Indemnitees"), in any way resulting from or arising out of the refusal to pay compensation as demanded by Consultant for the performance of services required by this Agreement. 5/22/02 Three-Party Agreement Page 9 12. Business Licenses. Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title 5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13.1. Consultant not authorized to Represent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. 13.2. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified for the parties in Exhibit A. 13.3. Entitlement to Subsequent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. 13.4. Entire Agreement. This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party aga'mst which enfomement 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. Three-Party Agreement 5/22/02 Page 10 13.6. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. 5/22/02 Three-Party Agreement Page 11 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 enfomed 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 fights 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 5/22/02 Page 12 Signature Page To Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and McMillin Rolling Hills Ranch, LLC, Applicant For Consulting Work to be Rendered with regard to Applicants' Project (Page 1 of 2) NOW THEREFORE, the parties hereto, having read and tmderstood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista By: Stephen C. Padilla, Mayor Attest: Susan Bigelow, City Clerk Approved as to Form: Ann Moore, City Attorney Dated: Consultant: RECON Charly Bull, President Three-Parry Agreement 5/22/02 ~ --/q Page 13 Signature Page To Three-Party Agreement Between City of Chula Vista, RECON, Consultant, and McMillin Rolling Hills Ranch, LLC, Applicant For Consulting Work to be Rendered with regard to Applicants' Project (Page 2 of 2) Applicant: McMILLIN ROLLING HILLS RANCH, LLC A Delaware limited liability company By: McMillin Management Services, L.P., a California limited partnership Its: Manager By: Corky McMillin Construction Services, Inc. a California corporation Its: General Partner By: ts: Its: 5/22/02 Tln'ee-Party Agreement Page 14 Exhibit A Reference Date of Agreement: October 14, 2003 Effective Date of Agreement: Date of final City signature of agreement City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Consultant: ILECON Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 1927 Fifth Avenue, Suite 200 San Diego, CA 92101 Applicant: McMillin Rolling Hills Ranch, LLC Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Other: A Califomia Limited Liability Company Address: 2727 Hoover Avenue National City, CA 91950 Telephone: (619) 336-3726 1. Property (Commonly known address or General Description): The property is commonly known as Rolling Hills Ranch (formerly Salt Creek Ranch) and includes approximately 1,200 acres of land in the southern foothills of the San Mignel Mountains, northwest of the upper Otay Reservoir. The project site is located in the northern portion of the 37 square-mile Eastern Territories planning area as defined by the City of Chula Vista General Plan. Three-Party Agreement 5/22/02 ~'~ 2~[~ Page 15 2. Project Description ("Project"): The project consists of mitigation monitoring services for Rolling Hills Ranch. RECON shall serve as the Environmental Monitor Specialist responsible for ensuring that mitigation measures are implemented as outlined in EIR 89-03, and SEIR-91-03. The Mitigation Monitor shall also be responsible for ensuring that the provisions of the project area specific management directives (ASMDs) have been complied with. 3. Entitlements applied for: Future grading plans, final maps, improvement plans, and building permits. 4. General Nature of Consulting Services ("Services--General"): RECON shall serve as the Environmental Monitor Specialist for the Rolling Hills Ranch Mitigation Monitoring and Reporting Program (MMRP) and ASMDs to the satisfaction of the City's Environmental Review Coordinator. 5. Detailed Scope of Work ("Detailed Services"): RECON shall serve as the Environmental Monitor Specialist for the Rolling Hills Ranch Mitigation Monitoring and Reporting Program (MMRP). RECON shall serve as the Environmental Monitor Specialist for a period of five years serving as an extension of staff for the Rolling Hills Ranch project. RECON will also be responsible for providing mitigation monitoring services and any other environmental expertise, as the City deems necessary, to oversee implementation of the conditions of the MMRP and the provisions of the ASMDs. Specific responsibilities of the Environmental Monitor Specialist with reference to the Rolling Hills Ranch MMRP and ASMDs will include, but may not be limited to: A. Research and Mitigation Identification: This first phase will involve basic research related to the project, determining which mitigation measures have been satisfied and which ones are remaining. The process will also include acquiring all of the proper documents that identify the mitigation requirements (e.g. MMRP, ASMDs, environmental impact reports, etc.). B. Plan Review: RECON will review all proposed plans, as requested by the City, for consistency with the mitigation monitoring and reporting plan for the Rolling Hills Ranch project. RECON will provide a briefmemorandnm that documents the results of each review. C. Substantial Conformance: RECON will provide input to City staff as requested for consideration of substantial conformance review for any plan modifications that may be proposed during the course of project development. Three-Party Agreement 5/22/02 ~ ~ ~Z Page 16 D. Field Monitoring and Coordination: RECON will conduct periodic field checks of the Rolling Hills Ranch project site to ensure that onsite mitigation measures arc being implemented. In addition, RECON will make sure that construction and grading are proceeding according to the requirements in the MMRP and ASMDs. RECON will observe construction methods and interview construction supervisors as a part of this effort. RECON shall be responsible for documenting all field visits and will coordinate with thc City as needed to inform staffofany issues. At the request of the City, RECON will periodically provide written field inspection updates to City staff. RECON will conduct the following field monitoring activities in conjunction with the proposed project:. · RECON will conduct field checks to verify that paleontological monitoring is occurring during grading activities. · RECON will conduct field checks to ensure construction operations occur within the designated time limitations of the Chula Vista Municipal Code (7:00 a.m. to 7:00 p.m., Monday through Saturday). · At the request of the City, RECON will monitor construction activities to ensure that the measures outlined in the specifications are adhered to, and that construction activities remain within the prescribed biological limits, as identified in the field through the placement of construction fencing. Weekly field visits are proposed throughout the project grading operations to accomplish this effort. More frequent field visits may be required at the request of the City when grading is occurring adjacent to sensitive biological limit lines. RECON will report the findings of the monitoring in monthly monitoring reports. For purposes of cost estimation, it is assumed that the grading operation will be completed within a one-year time frame. · RECON shall verify that all mitigation measures listed in the approved MMRP for the project have been implemented to the satisfaction of the City. Additionally, specific issue areas shall be reviewed by RECON with reference to the Rolling Hills Ranch MMRP including, but not be limited to: Paleontology: RECON will review the paleontology monitoring effort for the site and will review any mitigation report prepared as a result of that monitoring. Air Quality: RECON will monitor construction activities throughout the duration of the project to that project operations are in compliance with the EIR air quality mitigation measures. E. Meetings: RECON will attend team meetings and pre-construction meetings, at the request of City staff, during the planning and construction phase of the project. 5/22/02 Three-Party Agreement Page 17 6. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Upon the completion of each monitoring task as set forth in Sections 5 B through E above, RECON shall provide written monitoring reports to the City's Environmental Review Coordinator in a form acceptable to the City's Environmental Review Coordinator. Dates for Completion of all Consultant Services: The term of this agreement shall be for five years from the effective date of this Agreement. 7. Documents to be provided by Applicant to Consultant: (X) site plans (X) tentative tract maps ( ) architectural elevations (X) project description. (X) other: Rolling Hills Ranch EIR and Appendices, grading plans 8. Contract Administrators. City: Marilyn R.F. Ponseggi, Environmental Review Coordinator Applicant: Dave Gatzke, McMillin Rolling Hills Ranch, LLC Consultant: Charly Bull, RECON 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. ) Category No. 1. Investments and sources of income. ) Category No. 2. Interests in real property. ) Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ) Category No. 4. Investments in business entities and sources of income, which engage in land development, construction or the acquisition or sale of real property. Three-Party Agreement 5/22/02 Page 18 ( ) 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: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage). 5/22/02 Three-Party Agreement Page 19 Exhibit B Additional Recitals WHEREAS, on September 25, 1990 the City Council certified FEIR-89-03 and adopted the accompanying Mitigation Monitoring and Reporting Program, and on March 24, 1992 certified FSEIR-91-03 and adopted the accompanying Mitigation Monitoring and Reporting Program (MMRP); and WHEREAS, the implementation of the MMRP(s) and ASMDs necessitates the expertise of an Environmental Monitor Specialist and requires the hiring of a Consultant; and WHEREAS, it was determined by the Director of Planning and Building that staff has neither the available time or expertise to perform the subject work; and WHEREAS, the Applicant has deposited or will deposit funds necessary for the mitigation monitoring services; and WHEREAS, a request for proposal was distributed to 19 qualified consulting firms in accordance with the City's informal bidding process, and four proposals were received by the City that were responsive to the request; and WHEREAS, the City is in immediate need of an experienced CEQA consultant that is familiar with the City's policies and procedures; and WHEREAS, the Consultant is uniquely qualified to serve as the Consultant for this project based on their on projects of a similar nature, their experience with the resource agencies, their grasp of the project's complexities, and the firm's project experience within this region; and WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with procedures set forth in Section 6.5.2 of the Environmental Review Procedures. WHEREAS, the proposed contract with RECON to provide mitigation monitoring services would be in an amount not to exceed $49,936. Three-Party Agreement 5/22/02 ~/'~ ~? ~. Page 20 Exhibit C. Compensation Schedule and Deposit: Terms and Conditions. ( ) Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: ( ) Single Fixed Fee Amount: Milestone or Event Percent and Amount of Fixed Fee ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. (X) Time and Materials - $49,936.00 Mitigation Monitoring services for the Rolling Hills Ranch SPA Plan FEIR-89-03 and FSEIR 91-03. 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: Three-Party Agreement 5/22/02 ~'~ ~ 7 Page 21 ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation mount, 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 mounting 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 $49,936 ("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. Three-Party Agreement 5/22/02 . Page 22 CONSULTANT COST BREAKDOWN Estimated Time Task Hours Estimated Cost Research and Miti~tion Identification 54 4,390 Plan Review 34 3,220 Substantial Conformance Review 85 7,500 Field Monitoring and Coordination 210 15,380 Meetings 105 16,346 Expenses N/A 3,100 TOTAL 49,936 CONSULTANT RATE SCHEDULE Technical categories and current rates for staff anticipated to work on this contract are provided below. PR/NC[PAL ................................................................................................. $ 135.00 SENIOR ....................................................................................................... $ 110.00 ASSOCIATE ............................................................................................... $ 95.00 ANALYST ................................................................................................... $ 77.00 ASSISTANT ................................................................................................ $ 66.00 RESEARCH ASSISTANT .......................................................................... $ 57.00 GIS SPECIALIST ........................................................................................ $ 65.00 PRODUCTION SUPERVISOR ................................................................. $ 60.00 PRODUCTION SPECIALIST llI ............................................................... $ 55.00 PRODUCTION SPECIALIST Il ................................................................ $ 50.00 PRODUCTION SPECIALIST I ................................................................... $ 45.00 SPECIALIST III .......................................................................................... $ 77.00 SPECIALIST Il ............................................................................................ $ 67.00 SPECIALIST I ............................................................................................. $ 57.00 RESOURCE MONITOR II ......................................................................... $ 55.00 RESOURCE MONITOR I .......................................................................... $ 45.00 TECHNICIAN III .................................................................. $ 31.00 TECHNICIAN II ............... : ................................................... $ 26.00 TECHNICIAN I ..................................................................... $ 21.00 FIELD SUPERVISOR ............................................................. $ 40.00 FIELD CREW CHIEF ............................................................. $ 30.00 FIELD TECHNICIAN ............................................................. $ 22.00 SEED SPECIALIST ................................................................ $ 30.00 Three-Party Agreement 5/22/02 6 r~.~ Page 23 Materials Separately Paid For by Applicant - Cost or Rate ( ) Materials NA Reports Copies ( ) Travel NA ( ) Printing NA ( ) Postage NA ( ) Delivery NA ( ) Long Distance Telephone Charges NA ( ) Other NA Deposit (X) Deposit Amount: $15,000 - As agreed to by the Applicant, a deposit of $15,000 is to be made by McMillin Rolling Hills Ranch, LLC, Applicant agrees to deposit within 10 days if City requests to do so, a sum (estimated to be up to $3,000) for additional Materials separately paid for by the Applicant. Applicant hereby agrees to maintain a minimum balance of $10,000 at all times in the contract account for RECONs services as described in this contract. (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, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. ( ) 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. 5/22/02 Three-Party Agreement Page 24 (X) Bill Processing: A. Consultant's Billing t~ be submitted for the following period of time: (X) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month (X) End of the Month ( ) Other: C. City's Account Number: To be assigned after agreement is processed. D. Security for Performance ) Performance Bond, $ ) Letter of Credit, $ ) Other Security: Type: A-moLmt: $ ) 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: ( ) Retention Percentage: ( ) Retention Amount: $ Retention Release Event: () Completion of All Consultant Services to the satisfaction of the Environmental Review Coordinator. ( ) Other: Three-Party Agreement 5/22/02 ~7 _~t~ Page 25 Page 1, Item Meeting Date 10/21/03 COUNCIL AGENDA STATEMENT ITEM TITLE: Public Hearing to take public testimony on the formation of Community Facilities District No. 07-1 (Otay Ranch Village Eleven) and to consider the authorization to levy special taxes and to incur a bonded indebtedness secured by such special taxes A) Resolution of the City Council of the City of Chula Vista, California, Forming and Establishing Community Facilities District No. 07-I (Otay Ranch Village Eleven), Authorizing Submittal of Levy of Special Taxes to the Qualified Electors thereof B) Resolution of the City Council of the City of Chula Vista, California, Declaring Necessity to incur Bonded Indebtedness for Community Facilities District No. 07-1 (Otay Ranch Village Eleven), Submitting to the Qualified Electors Propositions to Authorize the Levy ora Special Tax therein, to Authorize such Community Facilities District to Incur a Bonded Indebtedness Secured by the Levy of such Special Tax to Finance certain Types of Public Facilities and to Establish an Appropriations Limit for such Community Facilities District, and Giving Notice Thereon SUBMITTED BY: Director of Engineering~)/ REVIEWED BY: City Manager,~ c~ (4/Sths Vote: Yes No X ) It is recommended that this item be continued to the meeting of November 12, 2003. J:\Engineer\AGENDAX,CAS 10-21-03 wan-Ch rcvised-('ONTD doc CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: 10/21/03 ITEM TITLE: CONSIDERATION OF AN AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT FOR THE ROLLING HILLS RANCH COMMUNITY RESOLUTION APPROVING THE AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT RELATED TO ROLLING HILLS RANCH BETWEEN THE CITY AND MCMILLIN ROLLING HILLS RANCH, LLC AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR J_~,~ REVIEWED BY: CITY MANAGER ~-~ 4/STHS VOTE: YES BACKGROUND On June 17, 1997, the City and Pacific Bay Properties ("Pac Bay") executed an Affordable Housing Agreement for Rolling Hills Ranch (the "Project") for purposes of further implementing its affordable housing obligation for the Project. Subsequently, the City and Pac Bay executed ~wo projed-specific affordable housing agreements. The first agreement pertained to a 116-unit Iow-income senior apartment complex, which has since been constructed and occupied and is now known as Rolling Hills Garden. The Second Agreement pertained to a 168-unit apartment complex, of which 32 units would be designated as affordable to Iow income households. The 168-unit apartment complex has not yet been construded. Compliance with both the First and Second Agreement is necessary to satisfy the Iow income housing obligations of the Project under the 1997 Affordable Housing Agreement. In April 2002, McMillin Rolling Hills Ranch, LLC (the "Developer") purchased portions of the Project which had not yet been improved with residences from Pac Bay. The Developer is requesting to amend and restate the Second Affordable Housing Agreement to provide McMillin with the flexibility of developing the site with a for-sale or rental development and adjusting the timing requirements for the provision of these units. Additionally, the Developer is requesting that the City release those properties not identified as affordable housing sites within the Salt Creek Ranch SPA Affordable Housing Plan from any obligation to provide affordable housing. An Amended and Restated Second Affordable Housing Agreement for the Project has been prepared for Council's consideration and approval to address the Developer's request. PAGE 2, ITEM NO.: MEETING DATE: 10/21/03 RECOMMENDATION That Council adopt the resolution approving the Amended and Restated Second Affordable Housing Agreement for Rolling Hills Ranch and authorizing the Mayor to execute such Agreement on behalf of the City. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION Under the City's Balanced Communities Policy of the Housing Element, the Developer has an obligation to provide 10 percent of those new residential housing units within the Project as affordable to Iow and moderate-income families (5% Iow and 5% moderate). Based on units constructed, final maps and tentative maps for Rolling Hills Ranch to date, a total of 2,352 residential housing units are anticipated. The Developer has an obligation to provide 118 units affordable to Iow income households and 118 affordable to moderate income households within the Project. The City and Pac Bay executed Nvo project-specific affordable housing agreements to ensure satisfadion of this obligation. The first agreement pertains to a 116-unit senior apartment complex, of which 104 units are for Iow-income households, known as Rolling Hills Garden. Additionally, Pac Bay agreed to provide 32 affordable Iow-income units within a 168 unit apartment complex for Neighborhood 4A2. Compliance with both the First and Second Agreement is necessary to satisfy the Iow income housing obligations of the Projed. As the current properly owner of those unimproved properties within Project, McMillin has expressed a desire to build attached for-sale homes rather than the 168-unit apartment complex. The Developer is requesting to amend and restate the Second Affordable Housing Agreement to provide McMillin with the flexibility of developing the site with a for-sale condominium or rental development and adjusting the timing requirements for the provision of these units. The current real estate market makes it difficult for the Developer to build the affordable units within a rental projed. If the Developer were to build the rental development, 32 units of the total 168 units would be set aside as affordable housing representing approximately 20 percent of the total development. Mixed income rental developments are difficult to finance due to the competition for funds, primarily tax credits and bond financing, which tends to support projects that are entirely affordable. The Developer is also requesting that all other properties within the Project be released from any further affordable housing obligations. Staff has determined that the site can accommodate the Developer's remaining duty to build Iow-income housing. Pac Bay demonstrated to the satisfaction of the City compliance with the moderate income housing requirements by providing PAGE 3, ITEM NO.: ~ MEETING DATE: 10/21/03 140 homes within the project to qualifying moderate-income households through January 31, 2001. Therefore, staff recommends the execution of a Partial Termination of the Affordable Housing Agreement as it relates to all propedies within the Project, with the exception of Neighborhood 4A2. The Developer has submitted preliminary plans for a for-sale development, which includes 167 units, of which 32 would be available to first-time Iow income homebuyers earning no more than 80% of Area Median Income, which is approximately $51,050 for a household of four. The development would consist of all three-bedroom units ranging in size from 1400 to 1550 square feet with an attached two car garage. In addition, the development would include a community pool and recreation facility for use by the residents. The plans have been submitted for review by the Design Review Committee. Following review by the DRC, a project specific Housing Agreement would be presented for Consideration by the Ci~ Council. CEG~A Compliance The proposed Amended and Restated Agreement for Rolling Hills Ranch has been reviewed for compliance with CEQA. The proposed Agreement is a mechanism for implementation of affordable housing within the prescribed densities and maximum unit count of the Rolling Hills Ranch General Development Plan and SPA plan. Approval and execution of the Agreement would not, therefore, result in the construction of any housing beyond that anticipated in the GDP and SPA plans and the environmental review documents previously certified for those plans. Therefore, no additional CEQA action is necessary. FISCAL IMPACT Agreement and any subsequent Amendments. ATTACHMENTS 1. Amended and Restated Second Affordable Housing Agreement for Rolling Hills Ranch RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT RELATED TO ROLLING HILLS RANCH BETWEEN THE CITY AND MCMILLIN ROLLING HILLS RANCH, LLC AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, on June 17, 1997, the City of Chula Vista and Pacific Bay properties ("Pacific Bay") executed an Affordable Housing Agreement as Document No. 1997-0400741 (the "1997 Affordable Housing Agreement") as recorded by the San Diego County Recorder's Office for the real property then known as Salt Creek Ranch for purposes of further implementing the Developer's affordable housing obligation under the City's Balanced Communities Policy of the Housing of the General Plan. The Property is now commonly known as Rolling Hills Ranch; WHEREAS, to satisfy the Iow income housing requirements of the 1997 Affordable Housing Agreement, the City and Pacific Bay entered into two project specific affordable housing agreements. The first such agreement, recorded April 17, 2000 as File No. 2000-0194442 of Official Records ("First Agreement"), pertained to a 116-unit Iow-income senior apartment complex, which has since been constructed and occupied and is now known as Rolling Hills Garden. The second agreement, recorded June 13, 2001 as File No. 2001-0397488 of Official Records ("Second Agreement") pertained to a 168-unit apartment complex for Neighborhood 4A2, of which 32 units would be designated as affordable to Iow income households. The 168-unit apartment complex has not yet been constructed. Compliance with both the First and Second Agreement is necessary to satisfy the Iow income housing obligations of the Project under the 1997 Affordable Housing Agreement; WHEREAS, Pacific Bay submitted to the City's Housing Manager a final report on January 19, 2001 demonstrating that a total of 140 homes within Rolling Hills Ranch had been sold to qualifying moderate income housings through January 31, 2001; WHEREAS, in April 2002, McMillin Rolling Hills Ranch, LLC ('McMillin") purchased from Pacific Bay the portions of Rolling Hills Ranch which had not yet been improved with residences and McMillin does not desire to construct the 168-unit apartment complex as specified within the Second Agreement; WHEREAS, McMillin is requesting to amend and restate the Second Agreement to allow McMillin with the option of applying to the City for a new project which will provide for thirty-two (32) affordable units as either for-sale units or rental units and to adjust the timing requirements for the provision of these units; WHEREAS, McMillin is also requesting the release of all those properties not identified as affordable housing sites within the Salt Creek Ranch SPA Affordable Housing Plan from any obligation to provide affordable housing, with the exception of those Neighborhoods known os 4A1 and 4A2; WHEREAS, an Amended and Restated Second Affordable Housing Agreement for Rolling Hills Ranch has been prepared for Council's consideration to address McMillin's request; and WHEREAS, this Amended and Restated Second Affordable Housing Agreement implements affordable housing requirements and impacts previously analyzed in the certified EIR for the Salt Creek Ranch GDP and SPA Plan, therefore, no additional action is required under CEQA. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that this City Council does hereby approve in the form presented the Amended and Restated Second Affordable Housing Agreement related to Rolling Hills Ranch, 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 Amended and Restated Second Affordable Housing Agreement for and on behalf of the City of Chula Vista. Presented by Approved as to form by Community Development Director ~eey /------'/) ' [Do] J:\HOME\COMMDEV~RESOS\CC Reso OTR V6 McMillin Amendment 2 ATTACHMENT 1 Recording Requested By CITY CLERK When Recorded Mail To: CITY CLERKS OFFICE 276 Fourth Avenue Chula Vista, CA 91910 SPACE ABOVE FOR RECORDER.S USE ONLY AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT This AMENDED AND RESTATED SECOND AFFORDABLE HOUSING AGREEMENT ("Restated Second Agreement") is entered into as of ,2003 by and between McMillin Rolling Hills Ranch, LLC, a Delaware limited liability company ("McMillin") and the City of Chula Vista, a California municipal corporation ("City"), with reference to the following facts: A. The City and Pacific Bay Properties, a California corporation ("PacBay"), entered into that certain Affordable Housing Agreement dated as of June 17, 1997 and recorded in the Official Records of San Diego County, California, on August 19, 1997 as Document No. 1997- 0400741 (the "1997 Affordable Housing Agreement") for the real property in the City of Chula Vista, California, then commonly known as the Salt Creek Ranch planned development and more particularly described in the 1997 Affordable Housing Agreement and on Exhibit A attached (the "Property"). The Property is now commonly known as Rolling Hills Ranch. B. The 1997 Affordable Housing Agreement required the developer to designate five .percent (5%) of the total dwelling units constructed within the Property as housing affordable to low income households and five percent (5%) of the total dwelling units constructed within the Property as housing affordable to moderate income households. Based on the total of 2,616 residential units approved for the Property pursuant to the Salt Creek Ranch SPA Plan, the low- income housing requirement for the Property was 131 units and the moderate income housing requirement for the Property was 131 units. C. PacBay issued a final biannual report to the City on January 19, 2001. This report indicated a total of 140 homes within the project had been sold to qualifying moderate-income households through January 31, 2001. Accordingly, the moderate-income requirement ofthe 1997 Affordable Housing Agreement has been satisfied. Rolling Hills Ilanch 1 D. To satisfy the low-income housing requirements of the 1997 Affordable Housing Agreement, City and PacBay entered into two project-specific affordable housing agreements. The first such agreement, recorded April 17, 2000 as File No. 2000-0194 ~. a. 2 of Official Records ("First Agreement") pertained to a l l6-unit low income senior apartment complex (the ',Senior Apartment Project"). The second agreement, recorded June 13, 2001 as File No. 2001-0397488 of Official Records ("Second Agreement") pertained to a 168-unit apartment complex o£which 32 units would be designated as affordable to low-income households. It was agreed that compliance with the First Agreement and Second Agreement would satisfy PacBay's Iow income housing. obligations under the 1997 Affordable Housing Agreement. E. Pursuant to the First Agreement, the 116-unit Senior Apartment Project was built and occupied by qualifying Iow-income households during the first phase of development of the Property. This exceeded the requirements of the 1997 Affordable Housing Agreement, which required construction of the first phase of 57 low- income units to commence prior to the 601" building permit, and construction of the remaining phase of 74 Iow income units prior to the 1,701 s~ building permit for the project. F. The 168-unit apartment complex project (of which 32 units would be designated as affordable to Iow-income households) contemplated by the Second Agreement has not been built. G. In April 2002, McMillin purchased from PacBay the portions of the Property which had not yet been improved with residences. McMillin does not desire to construct the 168-unit apartment complex project. H. McMillin would like to amend the Second Agreement in two ways. First, McMillin would like to adjust the timing requirements of the remaining phase such that the remaining phase of low-income units is provided in rough proportionality to the phasing of development on the Property. Second, McMillin would like not to be bound to provide the Iow-income units as rental units. McMillin would like to have the option of applying to the City for a new project-specific implementing agreement which provides for the thirty-two (32) units affordable to Iow income households as either a for-sale project or a rental project. I. McMillin and City wish to amend and restate the Second Agreement and replace it in its entirety with this Restated Second Agreement, on the terms described below. NOW, THEREFORE, FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the parties agree as follows: 1. Amendment and Restatement of Second Agreement. This Restated Second Agreement amends, restates and replaces the Second Agreement in its entirety. 2. New Project-Specific Implementing Agreement McMillin and the City shall enter into a new project-specific implementing agreement (the "New Agreement") regarding the remaining Rolling Hills Ranch 2 thirty-two (32) units of low- income housing required under the 1997 Affordable Housing Agreement. The remaining thirty-two (32) units of low- income housing shall be built on the multi- family housing site described on Exhibit B attached (the "Multi-Family Housing Site"). McMillin shall have the option to apply for a New Agreement which provides for satisfying the obligation for the remaining thirty-two (32) units of Iow income housing through either for-sale or rental units. The New Agreement shall require the commencement of construction of the remaining thirty-two (32) units of low income housing on or before the issuance of the building permit for the 2001 st residential unit on the Property, superceding the construction thresholds set forth in the 1997 Affordable Housing Agreement. With the Senior Apartment Project providing over 100unitsoflow income housing, triggering the remaining thirty-two (32) Iow income units at the 2,001st building permit is roughly proportional to the phasing of overall project construction and the timing specified in the Rolling Hills Ranch (a.k.~. Salt Creek Ranch) planning documents, including the 1997 Affordable Housing Agreement. 3. Release of Land. a. Because the moderate income housing requirements for the Property under the 1997 Affordable Housing Agreement have been satisfied, the City shall (i) concurrently with the execution of this Restated Second Agreement, execute and acknowledge a Release in the form of Exhibit C attached, releasing the Property from the moderate income housing requirements of the 1997 Affordable Housing Agreement, and (ii) promptly cause the Release to be recorded in the Official Records of San Diego County, Californi~ b. Similarly, because of the provision of the 116-unit Senior Apartment Project pursuant to the First Agreement, the City has determined that the Multi-Family Housing Site will accommodate Developer=s remaining duty to build Iow income housing units and thc City agrees to release the reminder of the Property from the 1997 Affordable Housing Agreement. The City shall (1) concurrently with the execution ofthis Restated Second Agreement, execute and acknowledge a Release in the form of Exhibit D attached, releasing the remainder of the Property (other than the Multi-Family Housing Site and the Senior Apartment Project Site) from the low income housing requirements of the 1997 Affordable Housing Agreement and (ii) promptly cause thc Release to be recorded in the Official Records of San Diego County, California. 4. Demand to Build. Notwithstanding the provisions ofSection 2 of this Agreement, if the City reasonably believes that the Developer will not reach the building permit threshold described in Section 2 (which would triggcr the construction of the low income housing units), the City shall have the right to demand that Developer construct a proportionate amount of Iow income housing units relative to the total number o fresidential building permits that have been issued for the Property. The City shall provide the Developer with the written demand to Construct the units within a reasonable period of time for the Developer to commence construction of the units. Developer shall complete coustmction of the low income housing units, as required by this paragraph, within one year of the commencement of construction of the units so demanded. 5. Right to Withhold Permits. The City has the absolute and unfettered right to withhold the issuance of any building permit for any residential unit within the Property that has not Roiling tilth Ranch been released in accordance with Section 3 herein if the Developer is not in compliance with the terms and/or obligations of this Agreement. 6. General Provisions. a. Binding Effect. The burdens of this Restated Second Agreement bind and the benefits of the Restated Second Agreement inure to the parties= successors or assigns in interest. b. Governing Law/Venue. This Restated Second 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 Restated Second A.greement shall be brought only in Federal or State cou.ns 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 Restated Second Agreement and performance thereunder, shall be the City of Chula Vista. c. Counterparts. This Restated Second Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one insmunent. d. Entire Agreement. This Restated Second Agreement contains the entire agreement between the parties relating to the txansaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein. e. Exhibits. All exhibits referred to in this Restated Second Agreement are attached, and are a part of, this Restated Second Agreement. f. Captions. Captions in this Restated Second Agzeement are inserled for convenience of reference only and do not define, describe or limit the scope or the intent of this Restated Second Agreement. g. Recording. The parties hereto shall cause this Restated Second Agreement to be recorded in the Official Records of the County of San Diego. h. No Third Party Beneficiary. No claim as a third-party beneficiary under this Restated Second Agreement by any person, corporation or any other entity, shall be made valid against McMillin or City. i. Assignment. The rights and obligations of McMillin under this Restated Second Agreement may be transferred or assigned, provided such transfer or assignment is made a part of the conveyance of the fee ofall or a portion of the Property. Any such transfer or assignment will be subject to the provisions of this Restated Second Agreement. During the term of this Restated Second Agreement, any such assignee or transferee will observe and perform all duties and obligations of McMillin in this Restated Second Agreement as such duties and obligations pertain to the portion of the said Property so conveyed. IN WITNESS WHEREOF, the parties hereto have executed this instrument as of the date first set forth above. McMILLIN ROLLING HILLS RANCH, LLC, a Delaware limited liability company By: McMillin Management Se~ices, L.P., a California limited partnership, Manager By: Corky McMillin Construction Se~ices, Inc., a California co~oration, General Partner r~~ By Title.~ Title %f.~ ~ CITY OF CHULA VISTA By Title ATTEST: By Title APPROVED AS TO FORM: Ann P. Moore, City Attorney B~ Title STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) On ,200._, before me, Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed lb the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized eapacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity upon behalf of which the person(s) acted, executed the insmunent. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) On ,200__, before me, Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument, the person(s), or the entity uPon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) EXHIBIT A .Legal Description of the Properly [original legal description attached] EXHIBIT B Legal Description of the Multi-Family Housing Site Parcel 1 0fParcel Map No. 18595 in the City of Chula Vista, County of San Diego, State of California, filed in the Office of the County Recorder of San Diego County, December 7, 2000 EXHIBIT C Release (Moderate Income Housing Requirements} [attached] EXHIBIT D Release (Low Income Housing Requirements) [attached] CITY COUNCIL REPORT ITEM NO.: q MEETING DATE: 10/21/03 ITEM TITLE: REPORT: UPDATE ON THE SAN MIGUEL RANCH EFFORTS TO SATISFY THEIR AFFORDABLE HOUSING REQUIREMENTS BY PROCESSING AND CONSTRUCTING A 129 UNIT FOR-SALE PROJECT SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR L.~--~ I.~ REVIEWED BY: CITY MANAGER '~9~ 4/5THS VOTE: YES ~ NO ~ BACKGROUND On August 7, 2001, the City and NNP-Trimark San Miguel Ranch, LLC ("Developer") executed an Affordable Housing Agreement for San Miguel Ranch (the 'Projed"). The Affordable Housing Agreement ("Agreement") stated that pursuant to the City of Chula Vista Housing Element and the establishment of the City's "Affordable Housing Policy", the Developer is required to provide 10% of each housing development of 50 or more units to be affordable to Iow and moderate income households, with at least one half of those units (5% of project total units) being designated for Iow income households. The Agreement allowed the Developer to satisfy their obligation through either for-sale or rental units. At this time, the Developer desires to satisfy their obligation through a for- sale project as generally described in this report. RECOMMENDATION That Council accept the Report. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION Under the City's Balanced Communities Policy of the Housing Element, the Developer has an obligation to provide 10 percent of those new residential housing units within the Projed as affordable to Iow and moderate-income families (5% Iow and 5% moderate). Based on units constructed, final maps and tentative maps for San Miguel Ranch to date, a total of 1,394 residential housing units are anticipated. The Developer has an obligation to provide 70 units PAGE 2, ITEM NO.: ~ MEETING DATE: 10/21/03 affordable to Iow income households and 70 affordable to moderate income households within the Project. Per the Agreement, prior to the approval of the last Final Map showing individual lots in Phase 1 (approximately 359 single family lots in Phase 1), Developer was to submit a detailed marketing plan to the Community Development Department showing that 25 qualified moderate income units will be constructed during Phase 1. On June 18, 2003, City staff confirmed via written correspondence that the first phase including the 25 moderate-income units had been completed, thereby placing the Developer ahead of schedule in satisfying their affordable housing obligation. Pursuant to the Agreement for the provision of Iow income housing, the first threshold in the Agreement stated that prior to the approval of the Final Map involving the 616th dwelling unit for the Project, the Developer must identify and define the Iow income housing project, provide proof of site control, determine the number of units (minimum 48), proposed affordability levels, terms of affordability, type of housing (rental or for-sale), and identify subsidies incentives and financing mechanisms for the project. The Developer has met the threshold requirements as indicated above. In October 2002, the Developer confirmed that Neighborhood "A" would be the site for the remaining affordable housing. The site allows for a maximum of 129 units, which would provide approximately 70 Iow-income affordable units, 45 moderate-income units and 5 market rate units. The Developer has expressed a desire to provide the required Iow-income units and the remainder of the moderate-income units through an affordable for-sale development on the site identified as Neighborhood "A". Staff has met with the Developer to discuss preliminary concepts for an affordable for-sale development, and the Developer has indicated a desire to provide units of ~wo, three, and four bedrooms, which addresses the City's need for larger sized units. In addition, the Developer is willing to price the units according to income and qualify the buyers according to income level as well. The Agreement does not currently require that moderate-income (120% to 140% of AMI) buyers be qualified by income, therefore, buyers with income levels that far exceed that level may purchase units that have been constructed to satisfy the moderate income obligation. Generally, the moderate-income requirement has been satisfied through market-rate units, but due to the elevated real estate market it has become more difficult to effectively reach this income level. Therefore, staff is recommending that the Developer income qualify both Iow-income and moderate- income buyers and that this be incorporated into the project level Affordable Housing Agreement, to be presented to the City Council at a future date. The Developer has submitted preliminary plans for a for-sale development, which would include the affordable units, for review by the Design Review Committee. It is anticipated that the proposed Project will be considered by the DRC in November. Following the DRC, a project specific Housing Agreement would be presented for consideration by the City Council in late 2003. Based upon the proposed timeline, the Developer anticipates that construction will commence grading in spring 2004, construction in summer 2004 and completion of the first phase in approximately November of 2004. There will be approximately five phases of construction, which should be completed in November 2005. PAGE 3, ITEM NO.: ~ MEETING DATE: 10/21/03 Due to the limited number of Iow-income units that are required, it would be difficult for the Developer to build the affordable units within a rental project. If the Developer were to build the rental development, 70 units of the proposed 120 units would be set aside as affordable housing representing approximately 58 percent of the total development. Mixed income rental developments are difficult to finance due to the competition for funds, primarily tax credits and bond financing, which tends to support projects that are entirely affordable. CEQA Compliance The Affordable Housing Agreement for San Miguel Ranch has been reviewed for compliance with CEQA. The Agreement is a mechanism for implementation of affordable housing within the prescribed densities and maximum unit count of the Son Miguel Ranch General Development Plan and SPA plan. The construction of the 120 unit for-sale development would not result in the construction of any housing beyond that anticipated in the GDP and SPA plans and the environmental review documents previously certified for those plans. Therefore, no additional CEQA action is necessary. FISCAL IMPACT At this time, the Developer is not requesting financial assistance for the development of an affordable for-sale projed. Therefore, there is no fiscal impact. ATTACHMENTS 1. Affordable Housing Agreement for San Miguel Ranch ATTACHMENT I Recording Requested by: ) ) CITY CLERK ) ) When Recorded, Mail to: ) ) CITY OF CHULA VISTA ) Attn: Community Development Department ) 276 Fourth Avenue ) Chula Vista, CA 91910 ) ) AFFORDABLE ItOUSING AGREEMENT [SAN MIGUEL RANCIt] This Affordable Housing Agreement ("Agreement") is made as of , 2001, by and between the NNP-Trimark San Miguel Ranch, LLC, a Delaware Limited Liability Company ("Developer"), and the City of Chula Vista, a Califomia municipal corporation ("City"), with reference to the following facts: A. The City of Chula Vista Housing Element established the City's "Affordable Housing Policy" which requires 10% of each housing development of 50 or more units to be affordable to low and moderate income households, with at least one half of those units (5% of project total units) being designated for low income households. (The Chula Vista Housing Element of the General Plan, Page III-4.) B. Developer owns 742.94 acres of that certain real property, as shown on Exhibit "A", and located in the portion of the City of Chula Vista (referred to herein as "Project"). The Project is more particularly described in Exhibit "B" (Legal Description) which is attached hereto and incorporated herein by this reference. C. On December 17, 1996, the City approved an Amended General Development Plan for the Project, by Resolution Number 18532, which required compliance with the City's Housing Element of the General Plan. On October 19, 1999, the City approved Ordinance No. 2799 adopting the San Miguel Ranch Sectional Planning Area Plan-Planned Community District Regulations. D. On October 19, 1999, the City approved the San Miguel Ranch Sectional Planning Area (SPA) Plan for the Project by Resolution Number 19631. E. On February 29, 2000, the City approved the San Miguel Ranch Tentative Subdivision Map, Chula Vista Tract 99-04, by Resolution Number 2000-068("Project Tentative Map"). Condition number 194 of the Project's Tentative Map requires that Developer enter into 1 Council Resolution No. 2001-258 an affordable housing agreement with the City prior to recordation of its first final map for purposes of further implementing its affordable housing obligation for the project. NOW THEREFORE, in consideration of the mutual promises described herein, and other good and valuable consideration, the parties agree as follows: 1. Definitions. Unless otherwise indicated, for purposes of this Agreement, the following terms shall mean: a. "Low income housing" means housing affordable to a household of persons who claim primary residency at the same trait with combined incomes that do not exceed 80% of the area median income (adjusted annually) based on household size, as determined annually by the U.S. Department of Housing and Urban Development (HUD). Household size is calculated by the number of persons residing at thc same unit as their primary residency. b. "Moderate income housing" means housing affordable to a household of persons who claim primary residency at the same unit with combined incomes between 80% and 120% of the area median income (adjusted annually) based on household size as determined annually by the U.S. Department of Housing and Urban Development (HUD). Household size is calculated by the number of persons residing at the same unit as their primary residency. The range of income levels described in the above defined terms may change from time to time in accordance with changes to federal, state and local laws. c. "Affordable housing" means housing for which the rent/housing payment paid by an income qualified household shall not exceed a specified fraction of the gross monthly income, adjusted for household size, for the following classes of housing: 1. Extremely low-income, rental or for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at thirty (30%) percent of the county median income; 2. Very Iow-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at fifty (50%) pement of the county median income; 3. Low-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at eighty (80%) percent of the county median income; and, 4. Moderate-income, rental and for-sale units: thirty (30%) percent of the gross monthly income, adjusted for household size, at one hundred twenty (120%) percent of the county median income. Should subsidized financing and/or other offsets to development costs from a public agency be proposed and obtained, the affordable housing expense shall be dictated by such program or granting Agency. If no affordable housing expense is specified, the affordable monthly rent/ 2 housing payment shall be established in accordance with Section 50053 and 50052.5 of the California Health and Safety Code, respectively. d. "Developer's Obligation" means the Developer's obligation to provide 10% of the total number of residential units constructed within the Project as low and moderate income housing, with at least 5% consisting of low income housing units, as more particularly set forth in GDP, SPA and this Agreement. e. "Regulatory Agreement" means a City-approved agreement imposing certain covenants, terms, and conditions on all or any portion of the Project relating to the acquisition, construction, equipping, operation, and occupancy of a residential development providing affordable housing units for low and/or moderate income households to ensure that such development will be developed, owned, and operated in accordance with this Affordable Housing Agreement. 2. Duty to Build. Developer shall satisfy its developer's obligation as follows: a. Moderate income housing units. In order to satisfy Developer's Obligation with regard to moderate income housing, Developer agrees to construct five percent of the total number of the Project's residential units as moderate income housing units. Developer shall complete construction of the moderate income housing units in accordance with the Implementation schedule, attached hereto as Exhibit C. Developer shall provide the City a biannual report documenting the progress Developer has made toward meeting Developer's Obligation for moderate income housing. b. Low income housing units. In order to satisfy Developer's Obligation with regard to low income housing, Developer agrees to construct low income housing units equal to at least five percent of the total number of the Project's residential units. The Developer shall commence construction of 70% of the total number of qualified low income housing units required by the Project, on or before the issuance by the City of the 616th building permit for the Project ("Initial Phase"). Developer shall thereafter diligently pursue completion of construction of the Initial Phase with construction of the Initial Phase to be completed no later than one year from the date of commencement of construction of said units. Thereafter, the Developer shall commence construction of the remaining number of qualified low income housing units required by the Project, on or before the City's issuance of the 1,334th building permit for the Project ("Remaining Phase"). Developer shall diligently pursue completion of construction of the Remaining Phase with construction of the Remaining Phase to be completed no later than one year from the date of commencement of construction of said units. Commencement of construction shall mean the Developer has obtained a build permit for that first building providing units affordable to and restricted for occupancy by low income households. The Developer may deliver 100% of the qualified low income housing units (construct both the Initial phase and Remaining phase) at the time of the Initial Phase. 3 c. Completion of construction. For purposes of paragraph 2(a) and 2(b) of this Agreement, construction shall be considered completed when final inspection of the low or moderate housing unit has been completed and occupancy and utility clearances have been issued in writing by the City. d. Minor delays. The thresholds described herein for commencing construction of low and moderate income housing units are based upon the current phasing proposals for the Project as shown on the Tentative Map. City and Developer acknowledge that changes to the Project may be required fi.om time to time which could have a minor or insubstantial impact on the timing of construction of the low or moderate income housing units. Accordingly, changes to the Project that could result in a delay of less than three months in the construction of such units may, in the City's sole discretion, be considered minor or insubstantial by the City's Community Development Director and made without amendment to this Agreement. All other changes shall require a written amendment to this Agreement. 3. Duty to Identify. Developer shall construct the affordable housing units at the site(s) as identified on Exhibit "D". Such sites were selected based upon their proximity to and availability of existing and proposed public transit facilities and services, community facilities and services, and employment opportunities. 4. Duty to Implement Affordable Housing Program. Developer shall cause the Affordable Units to be developed, marketed, rented/sold in accordance with the City's goals, policies and programs contained in the Housing Element of the General Plan and the Affordable Housing Program Implementation Guidelines, and the Project's Sectional Planning Area (SPA) Affordable Housing Program, as they may be adopted and amended from time to time, the terms and conditions of which are hereby incorporated by this reference. In the event that there is an inconsistency between this Agreement and the City's affordable housing policies (collectively the "Affordable Housing Policies"), this Agreement shall control and the parties agree, as City deems necessary, to seek any appropriate modifications to the Affordable Housing Policies to create consistency with the terms and conditions hereof. 5. Demand to Build. Notwithstanding the provisions of paragraph 2 of this Agreement, if the City reasonably believes that the Developer will not reach the building permit thresholds described in paragraph 2 (which would trigger the construction of the low income housing units) or not complete construction of the moderate income housing units, the City shall have the right to demand that Developer construct a proportional amount of low and/or moderate income housing units relative to the total number of residential building permits that have been issued for the Project. The City shall provide the Developer with the written demand to construct the units within a reasonable period of time for the Developer to commence construction of said units. Developer shall complete construction of the low and/or moderate income housing units, as required by this paragraph, within one year of the commencement of construction of the units so demanded. The duty contained in this paragraph is non-cumulative to the duty in paragraph 2 with the City providing the Developer with the appropriate amount of credit for completed construction. 4 6. Right to Withhold Permits. The City has the absolute and unfettered right to withhold the issuance of any building permit for any residential unit within any residential development within the Project that has not been released in accordance with paragraph 8 herein if the Developer is not in compliance with the terms and/or obligations of this Agreement. 7. Development Permits, Maps and Documents. Developer shall at its sole expense, cause the preparation and diligent processing of all permits, agreements, plans, maps, and other documents, including but not limited to, market strategy plans, design development plan, and any amendments to the Project's General Development Plan and Section Planning Area Plan that may be necessary to meet the Developer's Obligation in the time frames set forth herein as Exhibit C, or shall cause such actions to occur. City and Developer agree to cooperate with each other in processing Developer's permits for the Project. Any unreasonable delay caused by City in this regard that is not caused by the fault of the Developer shall not be cause for City declaring Developer in default hereunder and Developer's performance schedule may be extended for a period of time equal to such delay provided that Developer has used, and continues to use, its best efforts to cause Project completion in a timely manner. 8. Release. a. If Developer transfers any portion of the Project which is subject to the burden of this Agreement, upon request by the Developer or its assignee, the City will release the portion so transferred of the burden of this Agreement as to such assigned portion if such portion has either complied with the requirements of this Agreement or if the Director of Community Development, in the Director's sole discretion, determines that other land within the Project will accommodate Developer's Duty to build low income housing units. b. Upon the sale of any individual trait to a homebuyer, the parties agree that such unit shall be released from the provisions of this Agreement. Such release shall not limit or modify in any way Developer's duty to build. c. City further agrees to timely consider any request for release by Developer pursuant to (a) above. When such release is granted, Developer and City agree to amend Exhibit D to identify those other sites to accommodate the affordable housing units in place of those sites originally identified and subsequently released of such burden. d. In the event that a parcel is to be released pursuant to the provisions of paragraphs (a) or (b) above, the parties agree to execute and record such documentation as is reasonably required by a reputable title insurance company to evidence such release. All costs related to any such release shall be paid by Developer or its assignee; City shall have no responsibility of such costs. e. Upon the recordation of a City-approved regulatory agreement imposing affordable housing covenants with respect to all or any portion of the Project, unless such Regulatory Agreement otherwise expressly provides, the provisions of this Affordable Housing 5 Agreement shall no longer be applicable to such portion of the Project, and the recordation of the Regulatory Agreement shall operate to release such portion of the Project from the terms hereof. f. The release of a portion of the Project from the terms of the Affordable Housing Agreement shall in no way alter the obligations of the Developer under the Affordable Housing Agreement with respect to other portions of the Project which shall continue in full force and effect until such time as Developer satisfies, in full, Developer's obligation hereunder. 9. Subordination and Notice. a. Subordination. Developer shall enter into subordination agreements with all lien holders having any interest in the Project to ensure that the provisions of this Agreement bind such lien holders should they take title to all or part of the property through quitclaim deed, sale, foreclosure or any other means of transfer of property. Developer shall deliver to the City the fully executed subordination agreements in a form acceptable to the City Attorney and suitable for recording on or before the issuance of the first building permit for the Project. b. Notice. Developer shall provide written notice of the terms of this Agreement (which could be a copy of this Agreement) to all purchasers and potential purchasers of real property within the Project, excluding however, a buyer of an individual housing unit. 10. General Provisions. a. Authority of Signatories. The individuals signing this Agreement on behalf of the City warrant that (i) he or she is duly authorized to sign and deliver this Agreement on behalf of the City in accordance with a duly adopted resolution of the City Council of the City and (ii) this Agreement is binding upon the City in accordance with its terms. Developer and each individual signing this Agreement on behalf of Developer warrants that (i) he or she is duly authorized to sign and deliver this Agreement on behalf of Developer, and (ii) this Agreement is binding upon the corporation in accordance with its terms. b. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, but all of which together will constitute one instrument. c. Applicable Law. This Agreement will be construed and enforced in accordance with the laws of the State of California. d. Successors. All terms of this Agreement will be binding upon and inure to the benefit of the parties and their respective administrators or executors, successors and assigns. Developer hereby subjects the Project to the covenants, reservations and restrictions set forth in this Agreement. The Developer and the City hereby declare their express intent that the covenants, reservations and restrictions set forth herein shall be deemed covenants nmning with the land and shall pass to and be binding upon the developer's successors in title to the Project; provided, however, that on the termination of this Agreement said covenants, reservations and restrictions 6 shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Project or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such covenants, reservations and restrictions are set forth in such contract, deed or other instruments. e. Modifications. No modification, waiver or discharge of this Agreement will be valid unless the same is in writing and signed by the parties to this Agreement. L Entire Agreement. This Agreement contains the entire agreement between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein. g. Attorney's fees and costs. If either party commences litigation for the judicial interpretation, reformation, enforcement or rescission hereof, thc prevailing party will be entitled to a judgment against thc other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be thc party who is awarded substantially thc relief sought. h. Exhibits. All exhibits referred to in this Agreement are attached, and are a part of, this Agreement. i. Captions. Captions in this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement. j. Recording. The parties hereto shall cause this Agreement to be recorded in the Official Records of the County of San Diego. k. No Third party Beneficiary. No claim as a third-party beneficiary under this Agreement by any person, corporation or any other entity, shall be made or be valid against City or Developer. 1. Incorporation of Recitals. The recitals set forth herein are part of this Agreement. m. Assignment. The obligations of the Developer under this Agreement shall not be assigned in whole or apart, without the express written consent of the City in its sole discretion. Any unapproved assignment shall be null and void. (Next page is Signature Page) 7 SIGNATURE PAGE TO AFFORDABLE HOUSING AGREEMENT SAN MIGUEL RANCH IN WITNESS WHEREOF, City and Developer have executed this Agreement this day of ,2001. CITY OF CHULA VISTA NNP-TRIMARK PACIFIC SAN MIGUEL RANCH, LLC., LLC, a Delaware Limited Liability Company By: By: Shirley Horton, Stephen E. Hester, Mayor Vice President Attest: By:. Susan Bigelow City Clerk Approved as to form by City Attorney Approved as to form by Attorney for Developer (HINES) C:Wiy Doeuments~SANMIGUE\SMR-AffHsgAgreement.doc [10/16/03 II:29AM] 8 EXItIBIT A Location Map to be Inserted EXHIBIT B DESCRIPTION OF SUBJECT PROPERTY All the certain real property located in the City of Chula Vista, County of San Diego, State of California, described as follows: Portions of Sections 21, 22, 27 and 28 Township 17 South, Range 1 West, San Bemardino Meridian, According to Official Plat Thereof, All in the City of Chula Vista, County of San Diego, State of California. B-1 EXHIBIT C SAN MIGITEL RANCH LOW INCOME HOUSING IMPLEMENTATION SCHEDULE FIRST PHASE - 48 UNITS Timing Tasks Prior to approval of thc Final Map Identify/Define low-income housing project and Involving thc 616th dwelling unit for the submit the following information to the satisfaction Project. of the Housing Division of thc Community Development Department: 1. Identify and provide proof of control of site. 2. Determine number of units (minimum 48), proposed affordability levels, terms of affordability, and type of housing (rental vs. for-sale). 3. Identify subsidies, incentives and financing mechanisms. Prior to approval of the Final Map Submit complete site plan application for Design Involving the 892nd dwelling unit for the Review Commission review of a minimum of 48 project or prior to issuance of the 360th low-income housing units. Building permit for the Project, whichever occurs first. Prior to issuance of the 465th Building Finalize proposed minimum 48-unit low-income Permit fortheproject, housing project by submitting the following information to the satisfaction of the Housing Division of the Community Development Department: 1. Submit Affordable Housing Review Application, including project pro-forma analysis. 2. Identification of financing cycles (tax-credit or bond financing) and timing of financing (each March or July). 3. Affirmative marketing plan. 4. Site Plan approved by Design Review Commission. Prior to Issuance of the 544th Building Obtain financing for a minimum of 48 low-income Permit for theproject, housing units to the satisfaction of the Housing Division of the Community Development Department. Prior to Issuance of the 616th Building Obtain building permit approval and commence Permit for the project, construction of 48 low-income housing units. SAN MIGUEL RANCH LOW INCOME HOUSING IMPLEMENTATION SCHEDULE Prior to Issuance of the 946th Building Obtain Final Inspection and release of utilities for a Permit for the project, minimum of 48 low-income housing units SECOND PHASE - 22 UNITS Prior to issuance of the 1,105th building Identify/Define low-income housing project and permit for the Project. [note: approx. 7 submit the following information to the satisfaction months after 947th bldg. permit issued, thc of the Housing Division of thc Community 1st in phase 3]. Development Department: 1. Identify and provide proof of control of site. 2. Determine number of units (minimum 48), proposed affordability levels, terms of affordability, and type of housing (rental vs. for-sale). 3. Identify subsidies, incentives and financing mechanisms. Prior to approval of the 1,171st Building Submit complete site plan application for Design Permit for the project [3 months later]. Review Commission review of a minimum of 22 low-income housing units. Prior to issuance of the 1,236th Building Finalize proposed minimum 22-unit low-income Permit for the project. [3 months later housing project by submitting the following because the absorption rate slows to 15 per information to the satisfaction of the Housing month between 1217 and 1394 units] Division of the Community Development Department: 1. Submit Affordable Housing Review Application, including project pro-forma analysis. 2. Identification of financing cycles (tax-credit or bond financing) and timing of financing (each March or July). 3. Affirmative marketing plan. 4. Site Plan approved by Design Review Commission. Prior to Issuance of the 1,289th Building Obtain financing for a minimum of 22 low-income Permit for the project.[3-1/2 months later] housing units to the satisfaction of the Housing Division of the Con~munity Development Department. C-3 SAN MIGUEL RANCH LOW INCOME HOUSING IMPLEMENTATION SCHEDULE Prior to Issuance of the 1,334th Building Obtain building permit approval and commence Permit for the project. [3 months later], construction of 22 remaining low-income housing units. Prior to Issuance of the 1,394~h or final Obtain Final Inspection and release of utilities for a Building Permit for thc project [4 months 22 remaining low-income housing units. later], or one year from the date of issuance of the building permit, whichever occurs first. C-4 SAN MIGUEL RANCH MODERATE INCOME HOUSING IMPLEMENTATION SCHEDULE INITIAL PHASE ~ 25 UNITS TIMING TASKS Prior to the approval of the last Final Map Submit detailed marketing information to satisfaction showing individual lots in phase 1 of Housing Division/Commurfity Development (approximately 359 single £amily lots in Department showing that 25 qualified moderate phase 1). income units will be constructed during phase 1. Prior to Issuance of the 441st Building Submit detailed information to the satisfaction of Permit in phase 1, or 95% of Building Housing Division/Community Development Permits in phase 1, whichever occurs first. Department showing that 25 qualified moderate income housing units have been constructed and sold to qualified buyers in phase 1. SECOND PHASE - 25 UNITS Prior to the approval of the last Final Map Submit detailed marketing information to satisfaction showing individual lots in phase 2 of Housing Division/Community Development (approximately 622 single family lots in Department showing that 25 qualified moderate phasesl and 2). income units will be constructed during phase 2. Prior to Issuance of the 899th Building Submit detailed information to the satisfaction of Permit, or all Building Permits in phase 1 Housing Division/Community Development plus 95% of Building Permits in phase 2, Department showing that 25 qualified moderate whichever occurs first, income housing units have been constructed and sold to qualified buyers in phase 2. FINAL PHASE - 20 UNITS Prior to the approval of the last Final Map Submit detailed marketing information to satisfaction showing individual lots in Phase 3 of Housing Division/Community Development (Approximately 941 single family lots in Department showing that 20 qualified moderate phases 1,2, and 3). income units will be constructed during phase 4. Prior to Issuance of the 1,324th Building Submit detailed information to the satisfaction of Permit, or all Building Permits in phases Housing Division/Community Development 1,2,3 and 95% of Building Permits in phase Department showing that 20 qualified moderate 4, whichever occurs first, income housing units have been constructed and sold to qualified buyers in phase 4. C-5 EXHIBIT D D-l CHARITY JUSTICE BROTHERLY LOVE FIDELITY Office of the Secretary BENEVOLENT AND PROTECTIVE ORDER OF ELKS Chula Vista Lodge, No. 2011 901 ELKS LANE CHULA VISTA, CALIFORNIA 91910-6558 September 5, 2003 Councibnember Jerry Rindone 2764111 Ave. Chula Vista, Ca. 91910 Dear Coancibnember Rindone, Exalted Ruler George Basye of the Chula Vista Elks Lodge contiaJly extends an invitation to attend and participate in the formal dedication of the Monument To The American Flag recently constrneted at the ~ ~ ~ Road_~~e.. The ceremony is scheduled 1....&& s.a.:'::,,- .. ' ¿nd the en~ picture illustrates the monumen - ---~~~~ for attendees, Elks Lane will be closed about 9:45 LIB. and it is requested that aU possible assemble in the Lodge for coffee and donuts before the street is closed. Shortly before 10:00 a.m. the group will proceed to the Monument and begin the ceremony which is expeeted to last 20 to 30 minutes. Invited political dignitaries will have an opportunity for comment should they 80 desire. Those arriving after street closure can find parking across Telegraph Canyon Road from the Monument in the Park and Ride parking lot. Pl_ extend this invitation to year staff and to othen you wisII to inchlde. Alter dedication an are invited back to the Lodge for lanela. So tltat we can make proper arrangements, please let us know ify.wiII be aul...· g. We look forward to your participation and should you have questions or input, please contact any of the fonowing Elk Public Relations memben. 'ßd/~æØ Bill Tanstan (619) 421-1903 I Ted Eckert (619) 475-4437 CHARITY JUSTICE BROTHERLY LOVE FIDELITY omce of the Secretary BENEVOLENT AND PROTECTIVE ORDER OF ELKS Chula Vista Lodge, No. 2011 901 ELKS LANE CHULA VISTA, CALIFORNIA 91910-6558 AUgDst 18, 2003 CHULA VISTA ELKS WDGE #2011 PRESS RELEASE A patriotic addition has been made to beautify Telegraph Canyon Road. The project started as a vision by Ron Reid to improve the landscaping near the Telegraph Canyon Road entrance to the Chula Vista Elks Lodge. Ron is an offtcer of the Lodge (Trustee) and President of the Hustlers, a volanteer gronp of Lodge memben responsible among other things for outside yard maintenance. Ron eulisted the help of Roger Hawker, a past Trustee, to assist with the project which evolved into a monument to the American Flag and to the veterans who defended her. Both Ron and Roger are Past Elks of the Year and were general contraeton by profession. Except for occasional help from other members, this project was exeeuted thru tireless effort by Ron and Roger often in the shadeless hot sunshine; only the work of love a volunteer would do. The first step was to clear, grade and construct a new sturdy tJag pole with concrete walkway leading to it. Then the streetside bank and Lodge sign supports were concreted and faced with ornamental rock - a work of art by Roger. With tJag in place, the next step was to frame the monument and fiJJ the VariODS parts with washed crushed stone. The stone was painted to resemble the Amerlean Flag. Espeeially gratifying to Ron and Roger during latter stages of constrnetion was the acknowledgement of passing motorists via a chorus of horns making a salute. Pictured are Ron and Roger putting finishing touches to the project. A formal dedication ceremony is in the plaDDing stage with local political dignitaries being invited to participate. The public will also be invited to attend this patriotic event. --r Ted Eckert Elk Public Relations Council Member Jerry Rindone City Hall 276 Fourth Ave. Chula Vista, CA 91910 September 5, 2003 Dear Council Member Rindone, I would like to add my personal invitation to those of Elk's Lodge 2011, to you and your family, to attend the dedication of the monument to the American Flag and to the Veterans who defended her. The comerstone of our organization is the continued support of Americanism and the people that have sacrificed to preserve our way of life. Please join AssemblylMJlT1an Horton, Supervisor Cox and other members of the community in recognizing and honoring our local Veterans. The details of the occasion are explained in the attached letter. Sincerely, -J2~~ William W. Tunstall SEP 5 2003 ~...-.. .. ____J ., -_._---,~_. "------ ELK'S LODGE 2011 Community Support Activities Elk's Lodge 2011 presently has 728 men and women members that come from all walks of life. Our diversity enriches us socially and enhances the performance of our 5elVice to the community. The main thrust of our lodge activity is to raise funds and execute a number of youth and community 5elVice programs. On the local level, our emphasis is on youth activities including scholarships, scouting, athletics, drug awareness, etc. We also support our hospitalized veterans and assist the needy, especially during the Christmas season. From as needed we also make contributions to special disaster relief projects. In addition to many man-hours of labor, our monetary contribution to this category last lodge year was approximately $30,000.00. The Elks National Organization also has a broad scope of charitable activities that we support. As an example, the Elks are second only to the U.S. Government with regards to the amount of money contributed for scholarships. Curing the last year, our lodge's contribution to the national program was approximately $10,000.00. The 189 Bk Lodges in California and Hawaii are joined in supporting a multimillion-dollar "Major Project" involving mobile therapists reaching out to help disadvantaged children walk, talk, see, and hear. Last year Ihe contributions to this major project, from the Chula Vista Lodge, exceed $2,000.00. The Bks stress Americanism and have made the American Flag a cornerstone of their foundation. We hold fOl11'lal Flag Day Ceremony at the lodge each year that is open to the public. Youth Activities School Support: · Drug Awareness Program via the schools · Scholarship Programs - local, state and national · 2 Monthly High School Scholarships ($8,ooO.OOIyr.) í 1 Annual Top Scholar Recognition , Misc. Local School Projects Athletic I Recreational Sponsorships: · 1 Boy Scout Troop · 2 Little League Baseball Teams · 1 Soccer Team · Basketball "Hip Sheof' via the schools and the Boys & Girls Clubs Community Activities Elk's Major Project - Crippled Children; projected donation = $15,000.00 Monthly VA Hospital visitations and entertainment ($1,200.00) Annual Christmas food basket donations - 100 familie5 FOl11'lal Public Flag Day Ceremony Easter Party & Egg Hunt for the local children Bonita Fest parade float