HomeMy WebLinkAboutReso 2024-243
RESOLUTION NO. 2024-243
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A REIMBURSEMENT
AGREEMENT BETWEEN THE CITY AND MILLENIA, 2022,
LLC, FOR CONSTRUCTION OF A TRUNK SEWER
IMPROVEMENT
WHEREAS, Millenia, 2022, LLC, (“Developer”) and its predecessors have been
developing the master planned Millenia project (“Millenia”), formerly known as the Eastern Urban
Center (the “EUC”), in the Otay Ranch area of the City; and
WHEREAS, the City required the Developer to construct a sewer Extension improvement
known as the Hunte Parkway Trunk Sewer Extension (“Sewer Extension”); and
WHEREAS, the City Council, via Ordinance No. 2617, established the Salt Creek Sewer
Basin DIF, as updated over time, to provide the funding for various qualifying sewer
improvements within the Salt Creek Basin including the Sewer Extension; and
WHEREAS, Ordinance No. 2617 provides for Fee Credits to developers who construct all
or part of the identified sewer basin improvements to apply against their Salt Creek Sewer Basin
Development Impact Fee (“DIF”) obligations, and reimbursement to the extent the cost of
construction exceeds the developer’s obligations; and
WHEREAS, Developer has constructed the Sewer Extension, and City has reviewed and
approved the design, and inspected and accepted the Sewer Extension and determined that it was
constructed in such a manner as to qualify for reimbursements and/or credits pursuant to the above
authorities; and
WHEREAS, Developer has submitted a Reimbursement Request and provided the City
with the required documentation for City to determine the actual and Eligible Expenses incurred
by Developer to construct the Sewer Extension; and
WHEREAS, City staff has reviewed Developer’s Reimbursement Request and determined
the amount of Eligible Expenses and Reimbursable Costs (defined in the Reimbursement
Agreement); and
WHEREAS, Developer has requested, and City has already issued Fee Credits against the
Salt Creek Sewer Basin DIF obligation for a portion of the cost of the Sewer Extension in an
amount not covered by, and separate from, the Reimbursement Request and this Reimbursement
Agreement; and
WHEREAS, Developer now seeks reimbursement for Reimbursable Costs for the Sewer
Extension in the amount of $2,022,896,02; and
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Resolution No. 2024-243
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WHEREAS, City staff recommends approval of the Reimbursement Agreement between
the City and Millenia 2022, LLC, regarding the Reimbursable Costs for the Sewer Extension; and
WHEREAS, the City Clerk set the time and place for consideration by the City Council of
the Reimbursement Agreement, and notice of said matter, together with its purpose, was given
consistent with applicable law; and
WHEREAS, after review and consideration of the Staff Report and related materials for
the Reimbursement Agreement, the matter was considered before the City Council in the City
Council Chambers, 276 Fourth Avenue, and the proceedings and any documents submitted to the
City Council as the decision-makers shall comprise the entire record of the proceedings on the
matter.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that, based on the information recited above, it approves the Reimbursement Agreement between
the City and Millenia 2022, LLC, in the form presented, with such minor modifications as may be
required or approved by the City Attorney, a copy of which shall be kept on file in the Office of
the City Clerk, and authorizes and directs the City Manager to execute same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it does
hereby amend the Fiscal Year 2024-25 budget increasing appropriations a total $2,002,896.02 in
the Salt Creek DIF (Fund #580941).
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Resolution No. 2024-243
Page No. 3
Presented by Approved as to form
Laura C. Black, AICP Marco A. Verdugo
Director of Development Services City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 17th day of December 2024 by the following vote:
AYES: Councilmembers: Chavez, Fernandez, Inzunza, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2024-243 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 17th day of December 2024.
Executed this 17th day of December 2024.
Kerry K. Bigelow, MMC, City Clerk
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