HomeMy WebLinkAbout2026/06/02 Post Agenda Packet
Date:Tuesday, June 2, 2026, 5:00 p.m.
Location:Council Chambers, 276 Fourth Avenue, Chula Vista, CA
REGULAR CITY COUNCIL AND
SPECIAL HOUSING AUTHORITY MEETING
Notice is hereby given that the mayor has called and will convene a special meeting of the Housing Authority
meeting jointly with the City Council at the time and location stated on this agenda.
Watch live in English and Spanish: chulavistaca.gov/councilmeetings or Cox Ch. 24 (English only).
Free Spanish interpretation is available on-site.
_______________________________________________________________________________________
In-Person Public Comments: Submit a request to speak to City Clerk staff before the close of the public
comment period on an item or before the close of the general Public Comment period for non-agenda items.
Electronic Public Comments: At chulavistaca.gov/councilmeetings, locate the meeting and click the comment
bubble icon. Select the item and click "Leave Comment." You may also email cityclerk@chulavistaca.gov.
eComments, emails, and other written comments must be received by the day of the meeting at noon for a
regular meeting or three hours before the start time for a special meeting.
Watch Live or Recorded (English and Spanish): Visit chulavistaca.gov/councilmeetings. Click "ES" at the
bottom to switch to Spanish. Closed captioning is available in both languages.
Accessibility: In compliance with the Americans with Disabilities Act, if you need special assistance to
participate in this meeting, please contact the City Clerk’s Office at cityclerk@chulavistaca.gov or (619) 691-
5041. Providing at least 48 hours' notice will help ensure that reasonable arrangements can be made.
Gov. Code § 84308 Regulations: To promote transparency and fairness in the governmental decision-making
process, there are rules to prevent public officials from being unfairly influenced by contributors to their
campaigns. The type of activity these laws were enacted to limit is often referred to as “pay-to-play,” and is
governed in California by Government Code section 84308. Parties to any proceedings involving a “license,
permit, or other entitlement for use,” as that term is defined in the Political Reform Act, pending before the City
Council must disclose any campaign contribution over $500 (aggregated) within the preceding 12 months
made by the party, their agent, and those required to be aggregated with their contributions under Gov. Code
§ 82015.5. The disclosure must include the amount contributed and the name(s) of the contributor(s). "G.C. §
84308 Regulations Apply: Yes" on this agenda indicates that the item is subject to these regulations.
PUBLIC PARTICIPATION
Complete Agenda Packet: The agenda packet, including staff reports, draft resolutions and ordinances, and
other backup materials, is available at chulavistaca.gov/councilmeetings or the City Clerk's Office.
Time Allotted for Speaking (subject to change by the presiding officer)
- Consent Calendar (any or all items): 3 minutes
- Agenda Items (not on Consent): 3 minutes
- General Public Comment (not on agenda): 3 minutes
Individuals who use a translator will be allotted twice the time.
General Public Comments: Twenty-one (21) minutes are scheduled near the beginning of the meeting. The
first seven (7) speakers will be heard during the first Public Comment period. If additional speakers are
registered, they will be heard during the continued Public Comment period. If all registered speakers present
at the time address the City Council during the first Public Comment period, there will be no continued period.
Submitting Request to Speak: A request to speak must be submitted to the City Clerk before the close of the
public comment period on an item or before the close of the general Public Comments for non-agenda items.
GETTING TO KNOW YOUR AGENDA
AGENDA SECTIONS
Consent Calendar items are routine items that are not expected to prompt discussion. All items are
considered for approval at the same time with one vote. Before the vote, there is no separate discussion of
these items unless a member of the City Council or staff removes the item from the Consent Calendar.
Public Comment provides an opportunity to address the City Council on any matter not listed on the agenda
that is within the jurisdiction of the City Council. Under the Brown Act, the City Council cannot take action on
matters not listed on the agenda.
Public Hearings are held on matters specifically required by law.
Action Items are items expected to cause discussion and/or action by the City Council but do not legally
require a public hearing.
Closed Session may only be attended by members of the City Council, support staff, legal counsel, and others
specified on the agenda. Closed session may be held in very limited circumstances as authorized by law.
CITY COUNCIL ACTIONS
Resolutions are formal expressions of opinion or intention of the City Council and are usually effective
immediately.
Ordinances are laws adopted by the City Council. Ordinances usually amend, repeal, or supplement the
Municipal Code; provide zoning specifications; or appropriate money for specific purposes. Most ordinances
require two hearings and go into effect 30 days after the final approval.
Proclamations are issued by the City to honor significant achievements by community members, highlight an
event, promote awareness of community issues, and recognize City employees.
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda Page 2 of 761
Pages
1.CALL TO ORDER
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
4.SPECIAL ORDERS OF THE DAY
4.1 Presentation of a Proclamation Recognizing Sweetwater Union High School
District Executive Director of Curriculum and Instruction, Maria Lizarraga, Upon
Her Retirement
4.2 Presentation of a Proclamation Recognizing Sweetwater Union High School
District Assistant Superintendent of System Improvement and Innovation, Dr.
Daniel Winters, Upon His Retirement
5.CONSENT CALENDAR (Items 5.1 through 5.11)
Consent calendar items are considered together and acted upon by one motion. There is
no separate discussion of these items unless the Mayor or a City Councilmember
removes the item from the consent calendar. Items removed from the consent calendar
will be heard as action items.
RECOMMENDED ACTION:
City Council approve the recommended action on the below consent calendar items.
5.1 Approve Meeting Minutes 11
RECOMMENDED ACTION:
Approve the minutes dated: May 5, 12, and 19, 2026
5.2 Waive Reading of Text of Resolutions and Ordinances
RECOMMENDED ACTION:
Approve a motion to read only the title and waive the reading of the text of all
resolutions and ordinances at this meeting.
5.3 CIP Creation and Appropriation of Funds: Establish a New CIP Project
(GGV0238), Amend the Fiscal Year 2025-26 Operating and Capital Improvement
Program Budgets and Appropriate Funds, and Amend the Measure P
Expenditure Plan
38
Report Number: 26-0168
Location: 1800 Maxwell Road
Department: Public Works
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant
to the California Environmental Quality Act State Guidelines Section 15301 Class
1 (Existing Facilities).
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RECOMMENDED ACTION:
Adopt a resolution, 1) Establishing a new Capital Improvement Project entitled
“Public Works Roof” (GGV0238), 2) Amending the Fiscal Year 2025-26 Operating
and Capital Improvement Program Budgets and appropriating funds, and 3)
Amending the Measure P Infrastructure, Facilities, and Equipment Expenditure
Plan. (4/5 Vote Required)
5.4 Contract Award and CIP Budget Transfer: Accept Bids and Award a Public Works
Contract to Nu Line Technologies for “CMP Rehab Outside Right-Of-Way Phase
III Measure P” (DRN0219); and Amend the Fiscal Year 25-26 CIP Budget by
Transferring Funds to DRN0219
44
Report Number: 26-0177
Location: No specific geographic location
Department: Engineering and Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant
to State CEQA Guidelines Section 15301 (Existing Facilities) and 15302
(Replacement or Reconstruction).
RECOMMENDED ACTION:
Adopt a resolution 1) Accepting bids and awarding a Public Works contract to Nu
Line Technologies, LLC for the "CMP Rehab Outside Right-Of-Way Phase III -
Measure P” (DRN0219) project; and 2) Amending the Fiscal Year 2025-26 capital
improvement program (CIP) budget by transferring $600,000 in Measure P funds
from the available balance of “Erosion Repair Outside ROW Fresno/Main”
(DRN0220) project to CIP Project DRN0219, for completion of the project.
5.5 City Boards and Commissions: Designation of Financial Oversight Training
Requirements as Required by Senate Bill 827 (2025)
52
Report Number: 26-0149
Location: No specific geographical location
Department: City Clerk
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental
review is required.
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda Page 4 of 761
RECOMMENDED ACTION:
Adopt a resolution designating members of the following Boards and
Commissions, which are not otherwise designated as filing officials under the
City’s Conflict of Interest Code, as subject to the financial oversight training
requirements established under Senate Bill 827 (2025), and requiring completion
of such training in accordance with applicable law:
•Board of Library Trustees
•Cultural Arts Commission
•Health, Wellness, & Aging Commission
•Measure A Citizens’ Oversight Committee
•Measure P Citizens’ Oversight Committee
•Parks and Recreation Commission
5.6 Agreement Amendments and Grant Funds: Approve Agreement Amendments
and Authority to Apply for Grants for the Sustained Operations of the Chula Vista
Community Shuttle Pilot Program
58
Report Number: 26-0186
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (CEQA) Guidelines. Therefore,
pursuant to State Guidelines Section 15060(c)(3), no environmental review is
required. Notwithstanding the foregoing, the activity qualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State
Guidelines.
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda Page 5 of 761
RECOMMENDED ACTION:
Adopt the following resolutions:
A. Approving a third amendment to the agreement with Community
Congregational Development Corporation (“CCDC”) to accept an additional
$1,000,000 in grant funds for up to three (3) additional years of Chula Vista
Community Shuttle Pilot program (the “CV Community Shuttle”) operations and
appropriating funds for that purpose (4/5 Vote Required);
B. Approving a fourth amendment to the agreement with Circuit Transit Inc.
(“Circuit”) for the Chula Vista Community Shuttle Pilot program to update the
service hours, service area, fleet configuration, and cost structure for operations
up to June 2029, and amending the fiscal year 2025-26 budget by transferring
$440,000 in available Chula Vista Housing Authority (“Housing Authority”) funds
from the Bridge Shelter (Village at Otay) to CV Community Shuttle for year four
(4) of operation (4/5 Vote Required); and
C. Authorizing staff to submit an application for San Diego Association of
Government’s (“SANDAG”) Flexible Fleets Pilot Grant Program.
5.7 Consultant Services Agreements: Approve a Consultant Services Agreement with
Claims Management Associates, Inc. and Carl Warren & Company to Provide
Claim Administrative Support Services
98
Report Number: 26-0130
Location: No specific geographic location
Department: City Attorney
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The proposed action is not a "Project" as defined under
Section 15378 of the California Environmental Quality Act (”CEQA”) State
Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3), no
environmental review is required.
RECOMMENDED ACTION:
Adopt the following resolutions:
A. Awarding a consultant services agreement with Claims Management
Associates, Inc. to provide claims administrative support services; and
B. Awarding a consultant services agreement with Carl Warren &
Company to provide claims administrative support services.
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda Page 6 of 761
5.8 Animal Care and Control Services: Approve an Agreement Between the City of
Chula Vista and the City of Lemon Grove for Animal Care and Animal Control
Services
140
Report Number: 26-0181
Location: No specific geographic location
Department: Animal Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: This activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
RECOMMENDED ACTION:
Adopt a resolution approving an agreement between the City of Chula Vista and
the City of Lemon Grove to provide animal care and animal control services.
5.9 Contract Award and CIP Budget Transfer: Accept Bids and Award a Contract to
Pavement Coatings Co. for “Pavement Major Rehabilitation FY23/FY24/FY25”
(STM0411/0414/0404) Project; and Amend the FY26 CIP Program Budget by
Transferring Funds to STM0411
158
Report Number: 26-0135
Location: No specific geographic location
Department: Engineering and Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant
to California Environmental Quality Act State Guidelines Section 15301 Class 1
(Existing Facilities) and Section 15302 Class 2 (Replacement or Reconstruction).
RECOMMENDED ACTION:
Adopt a resolution: 1) Accepting bids and awarding a public works contract to
Pavement Coatings Co. for the “Pavement Major Rehabilitation FY22/23,
FY23/24 and FY24/25” (STM0411, STM0414, and STM0404) project; and 2)
Amending the Fiscal Year 2025-26 Capital Improvement Program (CIP) budget
by transferring $980,850.00 from the available balance of “Pavement Major
Rehabilitation FY26” (STM0416) project to CIP Project STM0411, for completion
of the project. (4/5 Vote Required)
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June 2, 2026 Post City Council/Housing Authority Agenda Page 7 of 761
5.10 Gann Limit: Establish Appropriations Limit for Fiscal Year 2026-27 208
Report Number: 26-0059
Location: No specific geographic location
Department: Finance
G.C. § 84308 Regulations Apply: No
Environmental Notice: This activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
RECOMMENDED ACTION:
Adopt a resolution establishing the appropriations limit (“Gann Limit”) for the City
of Chula Vista (“City”) for Fiscal Year 2026-27.
5.11 Contract Amendment: Approve the First Amendment of the Project
Implementation Agreement Related to the Financing and Development of the
Bayfront Resort and Convention Center
214
Report Number: 26-0204
Location: Parcel H-3 of the Chula Vista Bayfront Master Plan Area
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project is adequately covered in a previously certified
Final Environmental Impact Report (“FEIR”) for the Bayfront Master Plan and Port
Mast Plan Amendment (UPD #83356-EIR-658; SCH No. 2005081077; certified by
City Council Resolution No. 2010-113 on May 18, 2010).
RECOMMENDED ACTION:
Adopt the following resolutions:
A. Approving the first amendment to the Project Implementation Agreement
between the City of Chula Vista, the Bayfront Project Special Task Financing
District, the San Diego Unified Port District, the Chula Vista Bayfront Facilities
Financing Authority, and RIDA Chula Vista, LLC., and
B. Acting as the legislative body of the Bayfront Project Special Tax Financing
District, approving the first amendment to the Project Implementation Agreement
between the City of Chula Vista, the Bayfront Project Special Task Financing
District, the San Diego Unified Port District, the Chula Vista Bayfront Facilities
Financing Authority, and RIDA Chula Vista, LLC.E
6.PUBLIC COMMENTS 700
Twenty-one minutes are scheduled for the public to address the City Council for three
minutes each on any matter within the jurisdiction of the City Council that is not on the
agenda. The remaining speakers, if any, will be heard during the continued Public
Comment period.
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June 2, 2026 Post City Council/Housing Authority Agenda Page 8 of 761
7.PUBLIC HEARINGS
7.1 Regional Transportation Improvement Program: Adopt the TransNet Local Street
Improvement Program of Projects for Fiscal Years 2026-27 through 2030-31
716
Report Number: 26-0157
Location: No specific geographic location
Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section
15378 of the California Environmental Quality Act (“CEQA”) State Guidelines.
Therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental
review is required.
RECOMMENDED ACTION:
Conduct the public hearing and adopt a resolution approving the proposed
Transnet Local Street Improvement Program of Projects for Fiscal Years 2026-27
through 2030-31.
8.ACTION ITEMS
8.1 Consider Items Removed From the Consent Calendar, if Any
Consider items removed from the consent calendar by the Mayor or a City
Councilmember, if any. If no items were removed from the consent calendar, this
item will be withdrawn.
8.2 Housing Authority & City Housing Funding: Approve a Funding Commitment of
Up to $4,000,000 For the Park Hill UMC Development
729
Report Number: 26-0217
Location: 545 East Naples Street
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The funding action has been determined to be exempt
from the California Environmental Quality Act (CEQA) pursuant to State CEQA
Guidelines Section 15061(b)(3). The Project itself meets all requirements set forth
in California Government Code Section 65913.16(c). No further review under
CEQA is required.
This item was continued from the May 19, 2026 meeting.
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda Page 9 of 761
RECOMMENDED ACTION:
Adopt the following resolutions:
A. Chula Vista Housing Authority resolution authorizing a commitment of
up to $3,000,000 in Low- and Moderate-Income Housing Asset Fund funds
for the construction of an affordable housing development to be located at
545 East Naples Street; and
B. City of Chula Vista resolution authorizing a commitment of up to
$1,000,000, less $25,000 for City staff administrative costs, in Local
Housing Trust Fund funds for the construction of an affordable housing
development to be located at 545 East Naples Street. (4/5 Vote Required)
9.PUBLIC COMMENTS (CONTINUED)
There will be no continued Public Comment period if all speakers present at the first
Public Comment period are heard.
10.CITY MANAGER’S REPORTS
11.MAYOR’S REPORTS
12.COUNCILMEMBERS’ REPORTS
13.CITY CLERK'S REPORTS
14.CITY ATTORNEY'S REPORTS
15.CLOSED SESSION
Announcements of actions taken in closed session shall be made available by noon on
the next business day following the City Council meeting at the City Attorney's office in
accordance with the Ralph M. Brown Act (Government Code 54957.7)
15.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to
Government Code Section 54956.9(d)(1)
Name of case: Element 7 Chula Vista One, LLC v City of Chula Vista, et al.,
San Diego Superior Court Case No. 25CU049457C
16.ADJOURNMENT
to the regular City Council meeting on June 16, 2026, at 5:00 p.m. in the Council
Chambers.
Materials provided to the City Council related to an open session item on this agenda are
available for public review, please contact the Office of the City Clerk at
cityclerk@chulavistaca.gov
or (619) 691-5041.
We encourage community participation - sign up at www.chulavistaca.gov to receive
email notifications when City Council agendas are published online.
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda Page 10 of 761
City of Chula Vista
Regular City Council and Successor Agency to the Redevelopment Agency, and
Special Housing Authority Meeting
MINUTES
Date:
Location:
May 5, 2026, 5:00 p.m.
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Present: Councilmember Chavez, Deputy Mayor Fernandez, Councilmember
Inzunza, Councilmember Preciado, Mayor McCann
Also Present: City Manager Allen, City Attorney Verdugo, City Clerk Bigelow, Deputy
Director of City Clerk Services Turner
Minutes are prepared and ordered to correspond to the agenda.
_____________________________________________________________________
1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.
Mayor McCann announced, pursuant to the California Brown Act, (Government Code
Section 54952.3), that he and all Councilmembers would receive $50 for their
attendance at that Housing Authority meeting, held simultaneously with the City Council
meeting.
2. ROLL CALL
City Clerk Bigelow called the roll.
3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Led by City Clerk Bigelow
4. SPECIAL ORDERS OF THE DAY
4.1 Presentation of a Proclamation to Chula Vista Police Department and
Sergeant David Martinez for National Peace Officers Memorial Day on May
14th, 2026
The proclamation was presented.
4.2 Port of San Diego Update by Commissioner Ann Moore
Port Chair Moore gave a presentation.
4.3 Presentation of the 2026 Sustainability Champion Awards
Environmental Sustainability Manager Wisniewski and Environmental Services
Manager Medrano presented the awards.
Page 11 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
2026-05-05 Regular City Council and Successor Agency to the Redevelopment Agency, and Special
Housing Authority Meeting Minutes
Page 2
4.4 Presentation of a Proclamation Proclaiming May 14, 2026, as Childhood
Apraxia of Speech Awareness Day in the City of Chula Vista
The proclamation was presented.
5. CONSENT CALENDAR (Items 5.1 through 5.7)
The following members of the public spoke regarding various topics related to the
consent calendar:
John Acosta, Chula Vista resident
Robert
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To approve the recommended actions appearing below consent calendar Items 5.1, 5.2
and 5.4 through 5.7. The headings were read, text waived. The motion was carried by
the following vote:
Result, Carried (5 to 0)
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To approve the recommended action appearing below consent calendar Item 5.3. The
heading was read, text waived. The motion was carried by the following vote:
Result, Carried (3 to 2)
5.1 Waive Reading of Text of Resolutions and Ordinances
Approve a motion to read only the title and waive the reading of the text of all
resolutions and ordinances at this meeting.
5.2 Meeting Designation: Adopt an Ordinance Designating July 7, 2026, as a
Non-Regular Meeting Day Pursuant to Chula Vista Municipal Code Section
2.04.020
Adopt an ordinance designating July 7, 2026, as a non-regular meeting day
pursuant to Chula Vista Municipal Code Section 2.04.020. (Second Reading and
Adoption)
Item 5.2 heading:
Page 12 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
2026-05-05 Regular City Council and Successor Agency to the Redevelopment Agency, and Special
Housing Authority Meeting Minutes
Page 3
ORDINANCE NO. 3621 OF THE CITY OF CHULA VISTA DESIGNATING JULY 7,
2026, AS A NON-REGULAR MEETING DAY PURSUANT TO CHULA VISTA
MUNICIPAL CODE SECTION 2.04.020 (SECOND READING AND ADOPTION)
5.3 City Boards and Commissions: Adopt an Ordinance Amending the Municipal
Code to Implement District-Based Nominations for Certain Boards and
Commissions
Adopt an ordinance amending the Chula Vista Municipal Code to redesignate four
seats on the Board of Library Trustees, Charter Review Commission, Sustainability
Commission, Traffic Safety Commission, and Veterans Advisory Commission to
use a district-based nomination process, one seat per district; require appointees
to the district-designated seats on the Traffic Safety Commission to reside in the
corresponding district; provide that appointees to the district-designated seats on
the other listed bodies are not required to reside in the corresponding district; and
clarify that the existing Municipal Code process for the City Clerk to propose
reassignment of seat designations for City Council consideration and approval
applies when appointment processes are adjusted. (Second Reading and
Adoption)
Item 5.3 heading:
ORDINANCE NO. 3622 OF THE CITY OF CHULA VISTA AMENDING VARIOUS
SECTIONS OF THE CHULA VISTA MUNICIPAL CODE TO IMPLEMENT
DISTRICT-BASED NOMINATIONS FOR CERTAIN BOARDS AND
COMMISSIONS, AND CLARIFY THE PROCESS FOR REASSIGNMENT OF
SEAT DESIGNATIONS WHEN APPOINTMENT PROCESSES ARE ADJUSTED
(SECOND READING AND ADOPTION)
5.4 Agreement: Approve an Agreement with SC Commercial, LLC DBA SC Fuels
to Provide Motor Vehicle Fuel Supply and Delivery
Adopt the resolution approving an agreement with SC Commercial, LLC DBA SC
Fuels (“SC Fuels”) to provide motor vehicle fuel supply and delivery.
Item 5.4 heading:
RESOLUTION NO. 2026-069 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A CONTRACTOR SERVICE AGREEMENT FOR MOTOR
VEHICLE FUEL SUPPLY AND DELIVERY BETWEEN THE CITY OF CHULA
VISTA AND SC COMMERCIAL, LLC DBA SC FUELS
5.5 Agreement: Approve a Contractor Service Agreement with Wittman
Enterprises, LLC a Subsidiary of EMS Management & Consultants, Inc., a
North Carolina Corporation, for Emergency Medical Services Billing Services
Adopt a resolution approving a contractor service agreement with Wittman
Enterprises, LLC (“Wittman”) a subsidiary of EMS Management & Consultants, Inc.
a North Carolina corporation, for emergency medical services (“EMS”) billing
services.
Item 5.5 heading:
Page 13 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
2026-05-05 Regular City Council and Successor Agency to the Redevelopment Agency, and Special
Housing Authority Meeting Minutes
Page 4
RESOLUTION NO. 2026-070 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING CONTRACTOR SERVICES AGREEMENT FOR EMS
BILLING AND COLLECTIONS SERVICES WITH WITTMAN ENTERPRISES, LLC
5.6 Grant Acceptance and Appropriations: Accept Grant Funds from the San
Diego Regional Fire Foundation for Chula Vista Fire Department Wildfire
Mitigation Efforts
Adopt a resolution accepting the San Diego Regional Fire Foundation grant of
$45,000 and appropriating funds for that purpose. (4/5 Vote Required)
Item 5.6 heading:
RESOLUTION NO. 2026-071 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING THE SAN DIEGO REGIONAL FIRE FOUNDATION GRANT,
APPROPRIATING GRANT FUNDS, AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ASSOCIATED DOCUMENTS (4/5 VOTE REQUIRED)
5.7 Grant Acceptance and Appropriation: Accept the Roy and Marian Holleman
Foundation Grant Award and Appropriate Funds
Adopt a resolution accepting a grant award from the Roy and Marian Holleman
Foundation in the amount of $29,000 to fund repairs and improvements to the
Animal Care Facility and deep drain cleaning in the dog kennels, amending the
fiscal year 2025-26 budget, and appropriating funds for that purpose. (4/5 Vote
Required)
Item 5.7 heading:
RESOLUTION NO. 2026-072 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING A GRANT AWARD FROM THE ROY AND MARIAN
HOLLEMAN FOUNDATION, AMENDING THE FISCAL YEAR 2025-26 BUDGET,
AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED)
5.1 Waive Reading of Text of Resolutions and Ordinances
Approve a motion to read only the title and waive the reading of the text of all
resolutions and ordinances at this meeting.
5.2 Meeting Designation: Adopt an Ordinance Designating July 7, 2026, as a
Non-Regular Meeting Day Pursuant to Chula Vista Municipal Code Section
2.04.020
Adopt an ordinance designating July 7, 2026, as a non-regular meeting day
pursuant to Chula Vista Municipal Code Section 2.04.020. (Second Reading and
Adoption)
Item 5.2 heading:
ORDINANCE NO. 3621 OF THE CITY OF CHULA VISTA DESIGNATING JULY 7,
2026, AS A NON-REGULAR MEETING DAY PURSUANT TO CHULA VISTA
MUNICIPAL CODE SECTION 2.04.020 (SECOND READING AND ADOPTION)
Page 14 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
2026-05-05 Regular City Council and Successor Agency to the Redevelopment Agency, and Special
Housing Authority Meeting Minutes
Page 5
5.3 City Boards and Commissions: Adopt an Ordinance Amending the Municipal
Code to Implement District-Based Nominations for Certain Boards and
Commissions
Adopt an ordinance amending the Chula Vista Municipal Code to redesignate four
seats on the Board of Library Trustees, Charter Review Commission, Sustainability
Commission, Traffic Safety Commission, and Veterans Advisory Commission to
use a district-based nomination process, one seat per district; require appointees
to the district-designated seats on the Traffic Safety Commission to reside in the
corresponding district; provide that appointees to the district-designated seats on
the other listed bodies are not required to reside in the corresponding district; and
clarify that the existing Municipal Code process for the City Clerk to propose
reassignment of seat designations for City Council consideration and approval
applies when appointment processes are adjusted. (Second Reading and
Adoption)
Item 5.3 heading:
ORDINANCE NO. 3622 OF THE CITY OF CHULA VISTA AMENDING VARIOUS
SECTIONS OF THE CHULA VISTA MUNICIPAL CODE TO IMPLEMENT
DISTRICT-BASED NOMINATIONS FOR CERTAIN BOARDS AND
COMMISSIONS, AND CLARIFY THE PROCESS FOR REASSIGNMENT OF
SEAT DESIGNATIONS WHEN APPOINTMENT PROCESSES ARE ADJUSTED
(SECOND READING AND ADOPTION)
5.4 Agreement: Approve an Agreement with SC Commercial, LLC DBA SC Fuels
to Provide Motor Vehicle Fuel Supply and Delivery
Adopt the resolution approving an agreement with SC Commercial, LLC DBA SC
Fuels (“SC Fuels”) to provide motor vehicle fuel supply and delivery.
Item 5.4 heading:
RESOLUTION NO. 2026-069 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A CONTRACTOR SERVICE AGREEMENT FOR MOTOR
VEHICLE FUEL SUPPLY AND DELIVERY BETWEEN THE CITY OF CHULA
VISTA AND SC COMMERCIAL, LLC DBA SC FUELS
5.5 Agreement: Approve a Contractor Service Agreement with Wittman
Enterprises, LLC a Subsidiary of EMS Management & Consultants, Inc., a
North Carolina Corporation, for Emergency Medical Services Billing Services
Adopt a resolution approving a contractor service agreement with Wittman
Enterprises, LLC (“Wittman”) a subsidiary of EMS Management & Consultants, Inc.
a North Carolina corporation, for emergency medical services (“EMS”) billing
services.
Item 5.5 heading:
RESOLUTION NO. 2026-070 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING CONTRACTOR SERVICES AGREEMENT FOR EMS
BILLING AND COLLECTIONS SERVICES WITH WITTMAN ENTERPRISES, LLC
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5.6 Grant Acceptance and Appropriations: Accept Grant Funds from the San
Diego Regional Fire Foundation for Chula Vista Fire Department Wildfire
Mitigation Efforts
Adopt a resolution accepting the San Diego Regional Fire Foundation grant of
$45,000 and appropriating funds for that purpose. (4/5 Vote Required)
Item 5.6 heading:
RESOLUTION NO. 2026-071 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING THE SAN DIEGO REGIONAL FIRE FOUNDATION GRANT,
APPROPRIATING GRANT FUNDS, AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ASSOCIATED DOCUMENTS (4/5 VOTE REQUIRED)
5.7 Grant Acceptance and Appropriation: Accept the Roy and Marian Holleman
Foundation Grant Award and Appropriate Funds
Adopt a resolution accepting a grant award from the Roy and Marian Holleman
Foundation in the amount of $29,000 to fund repairs and improvements to the
Animal Care Facility and deep drain cleaning in the dog kennels, amending the
fiscal year 2025-26 budget, and appropriating funds for that purpose. (4/5 Vote
Required)
Item 5.7 heading:
RESOLUTION NO. 2026-072 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING A GRANT AWARD FROM THE ROY AND MARIAN
HOLLEMAN FOUNDATION, AMENDING THE FISCAL YEAR 2025-26 BUDGET,
AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED)
6. PUBLIC COMMENTS
The following members of the public spoke in support of Police Chief Kennedy:
William Lopez
Cheryl Mitchell
Patty McKelvey
Roberto Quezeda
Angelica Martinez, Chula Vista resident, spoke in support of reopening Hilltop Park.
John Acosta, Chula Vista resident, spoke regarding various topics.
At the request of Councilmember Inzunza, there was a consensus of a majority of the
City Council to pause public comment to allow Councilmember Inzunza to briefly
respond to public comment and request a City Council referral. The direction was
supported by Councilmember Chavez, Deputy Mayor Fernandez, Councilmember
Inzunza, and Councilmember Preciado, and opposed by Mayor McCann.
Councilmember Inzunza expressed concern regarding statements made during public
comment alleging that a member of the City Council was involved in a domestic violence
incident and that they and/or another individual may have been injured or may be in
danger.
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At the request of Councilmember Inzunza, there was a consensus of a majority of the
City Council to direct the City Attorney to coordinate with the Acting Police Chief
regarding opening an investigation into the matter. The direction was supported by
Councilmember Chavez, Deputy Mayor Fernandez, and Councilmember Inzunza, and
opposed by Councilmember Preciado and Mayor McCann.
Christine Brady, Chula Vista resident, spoke in support of dedicating Lauderbach Park to
the performing arts.
Melissa Linn expressed concerns regarding funding and transparency related to the
recent State of the City.
7. PUBLIC HEARINGS
7.1 Comprehensive Code Update: Consideration of Amendments to the Chula
Vista Municipal Code
Notice of the hearing was given in accordance with legal requirements, and the
hearing was held on the date and no earlier than the time specified in the notice.
Deputy City Manager/Director of Development Services Sapa'u, Code
Enforcement Manager Catacutan, Senior Planner Mallec, and Principal Planner
Medel gave a presentation on the item.
Mayor McCann opened the public hearing.
The following members of the public spoke regarding the item:
John Acosta, Chula Vista resident
Robert
There being no further members of the public who wished to speak, Mayor
McCann closed the public hearing.
Moved by Mayor McCann
Seconded by Councilmember Preciado
To place the below ordinance on first reading, the heading was read, text waived.
The motion was carried by the following vote:
Result, Carried (5 to 0)
Item 7.1 heading:
ORDINANCE OF THE CITY OF CHULA VISTA COMPREHENSIVELY AMENDING
CHULA VISTA MUNICIPAL CODE TITLE 1 (GENERAL PROVISIONS), TITLE 3
(REVENUE AND FINANCE), TITLE 5 (BUSINESS LICENSES, TAXES AND
REGULATIONS), TITLE 10 (VEHICLES AND TRAFFIC), TITLE 12 (STREETS
AND SIDEWALKS), TITLE 15 (BUILDINGS AND CONSTRUCTION), TITLE 17
(ENVIRONMENTAL QUALITY), TITLE 18 (SUBDIVISIONS), TITLE 19 (PLANNING
AND ZONING), AND TITLE 21 (HISTORIC PRESERVATION) (FIRST READING)
8. BOARD AND COMMISSION REPORTS
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8.1 Measure A Citizens’ Oversight Committee: Presentation of Annual Report
Covering Reporting Period July 1, 2024, through June 30, 2025
Measure A Citizens Oversight Committee Chair Stucky gave a presentation.
Robert spoke in support of the item.
The meeting was recessed at 6:39 p.m. and reconvened at 6:58 p.m.
9. ACTION ITEMS
9.1 Consider Items Removed From the Consent Calendar, if Any
There were none.
9.2 Lease Agreement: Approve a Lease Agreement with the Sweetwater Union
High School District for a Portion of the City-Owned Building Located at 1775
Millenia Avenue
Real Property Manager Dickson gave a presentation on the item.
The following members of the public spoke regarding the item:
Robert
Christine Brady, Chula Vista resident
Deputy Mayor Fernandez disclosed that he and his spouse are employed by the
Sweetwater Union High School District, and Councilmember Inzunza disclosed that
his spouse is employed by the District. Both stated they did not have a financial
interest in the matter, and the employment did not constitute conflicts of interest
Moved by Mayor McCann
Seconded by Councilmember Inzunza
To adopt Resolution No. 2026-073, the heading was read, text waived. The motion
was carried by the following vote:
Result, Carried (5 to 0)
Item 9.2 heading:
RESOLUTION NO. 2026-073 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A LEASE AGREEMENT BETWEEN THE CITY AND
SWEETWATER UNION HIGH SCHOOL DISTRICT FOR A PORTION OF THE
CITY-OWNED BUILDING LOCATED AT 1775 MILLENIA AVENUE
9.3 Annual Budget: Hear the Presentation of the City Manager’s Proposed
Budget for Fiscal Year 2026-27, Consider Acceptance of the Proposed
Budget, and Set a Public Hearing for Final Consideration and Adoption
Director of Finance Del Rio, Budget and Analysis Manager Prendell, and Director
of Engineering Schaar gave a presentation on the item.
The meeting was recessed at 9:05 p.m. and reconvened at 9:07 p.m.
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Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To adopt City Council Resolution No. 2026-074, Successor Agency to the
Redevelopment Agency Resolution No. 2026-001, and Housing Authority
Resolution No. 2026-002, the heading was read, text waived. The motion was
carried by the following vote:
Result, Carried (5 to 0)
Item 9.3 heading:
RESOLUTION NOS. 2026-074 OF THE CITY COUNCIL/ 2026-001 OF THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ AND 2026-002
OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING
THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL
IMPROVEMENT BUDGETS FOR FISCAL YEAR 2026-27 FOR EACH AGENCY
AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME
AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND
ADOPTION OF THE BUDGETS
9.4 State Legislation: Hear a Report on Assembly Bill 2484: San Diego
Metropolitan Transit System: Transactions and Use Tax: Voter Initiatives
(Alvarez) and Provide Direction to Staff on City Position
Special Projects Manager Relph gave a presentation on the item.
Sharon Cooney, representing the Metropolitan Transit System, and Ernesto
Castanares, representing Assembly member Alvarez's Office, spoke regarding the
item.
Robert spoke in opposition to the item.
Moved by Deputy Mayor Fernandez
Seconded by Councilmember Chavez
To support Assembly Bill 2484. The motion was carried by the following vote:
Result, Carried (3 to 2)
The meeting was recessed at 7:54 p.m. and reconvened at 8:00 p.m.
10. PUBLIC COMMENTS (CONTINUED)
The following members of the public spoke regarding various topics:
Robert
Admiral Rivera
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Denise Knoblock spoke regarding off-leash dogs in her neighborhood.
Greg Martinez, Chula Vista resident, spoke regarding issues with e-bike groups in the
community.
11. CITY MANAGER’S REPORTS
There were none.
12. MAYOR’S REPORTS
Mayor McCann reported on attendance at recent events and made community
announcements.
13. COUNCILMEMBERS’ REPORTS
Councilmembers reported on attendance at recent events and made community
announcements.
Councilmember Chavez provided a report regarding discussions from the recent
SANDAG meeting.
At the request of Councilmember Preciado, there was a consensus of a majority of the
City Council, to request that the City Attorney conduct a legal analysis regarding the
process and authority associated with determining the location of the State of the City
event, including whether the City Charter provides discretion to the Mayor in selecting
the venue, and to provide information regarding the costs associated with holding the
event off-site, including public, private, and City-incurred costs.
At the request of Councilmember Inzunza, there was a consensus of a majority of the
City Council to direct the City Manager, in coordination with the City Attorney, to return
within 60 days with a review and accounting of City-hosted or City-sponsored civic
events from November 2020 to the present, including State of the City events, swearing-
in ceremonies, and similar civic events. The review should include information on event
costs, staff time, reimbursements, vendors, invoices, contracts, sponsorships, donations,
in-kind contributions, funding sources, and related procurement or credit card
expenditures associated with such events.
14. CITY CLERK'S REPORTS
There were none.
15. CITY ATTORNEY'S REPORTS
There were none.
16. CLOSED SESSION
Pursuant to Resolution No. 13706 and City Council Policy No. 346-03, the City Attorney
maintains official minutes and records of action taken during closed session.
City Attorney Verdugo announced that the City Council would convene in closed session
to discuss the items listed below.
The meeting was recessed at 9:56 p.m. and reconvened in closed session at 10:04 p.m.
with all members present.
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16.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to
Government Code Section 54956.9(d)(1)
Name of case: Eric Crockett v City of Chula Vista, et al., San Diego Superior Court
Case No. 37-2024-00012828-CU-OE-CTL
Action: No reportable action
16.2 Conference with Legal Counsel Regarding Initiation of Litigation Pursuant to
Government Code Section 54956.9(d)(4)
Moved by Councilmember Preciado
Seconded by Deputy Mayor Fernandez
To authorize the City to join as plaintiff in litigation.
Result, Carried (5 to 0)
MDL 3179: In Re: Fire Apparatus Antitrust Litigation (2:26-md-03179-WCG)
16.3 Conference with Legal Counsel -- Anticipated Litigation
Significant Exposure to Litigation Pursuant to Government Code Section
54956.9(b)
Bonita Valley Amateur Girls Softball Association, presented on August 15, 2024
Action: No reportable action
16.4 Conference with Labor Negotiators Pursuant to Government Code Section
54957.6
Agency-designated representatives: Tiffany Allen, Courtney Chase, Tanya
Tomlinson, Marco Verdugo
Employee organization: IAFF
Action: No reportable action
16.5 Public Employee Appointments Pursuant to Government Code Section
54957(b)
Title: Director of Information Technology Services
Attorney Marco Verdugo announced that approval of the item would affect
executive compensation.
Moved by Councilmember Preciado
Seconded by Councilmember Inzunza
To ratify the appointment of Adnan Memon as Director of Information Technology
Services.
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Yes (5): Councilmember Chavez, Deputy Mayor Fernandez, Councilmember
Inzunza, Councilmember Preciado, and Mayor McCann
Result, Carried (5 to 0)
17. ADJOURNMENT
The meeting was adjourned at 11:08 p.m.
Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services
_________________________
Kerry K. Bigelow, MMC, City Clerk
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1
City of Chula Vista
Special City Council Workshop
MINUTES
Date:
Location:
May 12, 2026, 6:00 p.m.
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Present: Councilmember Chavez, Deputy Mayor Fernandez, Councilmember
Inzunza, Councilmember Preciado, Mayor McCann
Also Present: City Manager Allen, City Attorney Verdugo, City Clerk Bigelow, Deputy
Director of City Clerk Services Turner
Minutes are prepared and ordered to correspond to the agenda.
_____________________________________________________________________
1. CALL TO ORDER
The meeting was called to order at 6:00 p.m.
2. ROLL CALL
City Clerk Bigelow called the roll.
3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Led by Deputy Director Courtney Chase.
4. WORKSHOP
4.1 Strategic Plan: Continued Presentation and Discussion of the City's Draft
2026–2031 Strategic Plan
Kymberly Garrett and Sommer Kehrli, representing the Center for Organizational
Effectiveness, gave a presentation on the item, and the City Council provided
feedback.
The following members of the public spoke regarding the item:
Robert
Greg Martinez, Chula Vista resident
Evette Garcia
Stephan Gaspar
5. ADJOURNMENT
The meeting was adjourned at 7:16 p.m.
Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services
_________________________
Kerry K. Bigelow, MMC, City Clerk
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City of Chula Vista
Regular City Council, Special Housing Authority, and Special Successor Agency
to the Redevelopment Agency Meeting
MINUTES
Date:
Location:
May 19, 2026, 5:00 p.m.
Council Chambers, 276 Fourth Avenue, Chula Vista, CA
Present: Councilmember Chavez, Deputy Mayor Fernandez, Councilmember
Inzunza, Councilmember Preciado, Mayor McCann
Also Present: City Manager Allen, City Attorney Verdugo, Deputy Director of City
Clerk Services Turner
Minutes are prepared and ordered to correspond to the agenda.
_____________________________________________________________________
1. CALL TO ORDER
The meeting was called to order at 5:00 p.m.
Councilmembers Chavez and Preciado joined the meeting at 5:01 p.m.
Mayor McCann announced, pursuant to the California Brown Act, (Government Code
Section 54952.3), that he and all Councilmembers would receive $50 for their
attendance at that Housing Authority meeting, held simultaneously with the City Council
meeting.
2. ROLL CALL
Deputy Director, City Clerk Services Turner called the roll.
3. PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Led by Councilmember Inzunza.
Mayor McCann called for a moment of silence to acknowledge the tragic event at the
Islamic Center of San Diego, honoring the victims, their families, and the affected
community.
4. SPECIAL ORDERS OF THE DAY
4.1 Presentation of a Proclamation Honoring EMS Week in the City of Chula Vista
The proclamation was presented.
4.2 Presentation of a Proclamation Proclaiming May 17 through May 23, 2026 as
National Public Works Week in the City of Chula Vista
The proclamation was presented.
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4.3 Presentation of a Proclamation Recognizing Chula Vista Resident, Vien R.
Zhivago, Upon Retirement from the Drug Enforcement Association
The proclamation was presented.
5. CONSENT CALENDAR (Items 5.1 through 5.14)
The following members of the public spoke regarding various topics related to the
Consent Calendar:
John Acosta
Robert
Mayor McCann stated he would abstain from voting on Items 5.8C, 5.8E, and 5.13, and
Councilmember Chavez stated she would abstain from voting on Items 5.8C and 5.8D,
both due to potential property-related conflicts of interest.
City Attorney Verdugo announced that a revised resolution for Item 5.5 had been
distributed and that action on the item would be on the revised document.
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To approve the recommended actions appearing below consent calendar Items 5.1
through 5.7, 5.9 through 5.12, and 5.14. The headings were read, text waived. The
motion was carried by the following vote:
Result, Carried (5 to 0)
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To approve the recommended action appearing below consent calendar Item 5.8C. The
heading was read, text waived. The motion was carried by the following vote:
Result, Carried (3 to 0)
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To approve the recommended action appearing below consent calendar Item 5.8D. The
heading was read, text waived. The motion was carried by the following vote:
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Yes (4): Deputy Mayor Fernandez, Councilmember Inzunza, Councilmember Preciado,
and Mayor McCann
Abstain (1): Councilmember Chavez
Result, Carried (4 to 0)
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To approve the recommended action appearing below consent calendar Item 5.8E, the
heading was read, text waived. The motion was carried by the following vote:
Result, Carried (4 to 0)
5.1 Approve Meeting Minutes
Approve the minutes dated: April 21, and 28, 2026.
5.2 Waive Reading of Text of Resolutions and Ordinances
Approve a motion to read only the title and waive the reading of the text of all
resolutions and ordinances at this meeting.
5.3 Consider Requests for Excused Absences
Approve an excused absence for Deputy Mayor Fernandez from the April 28, 2026,
City Council meeting.
5.4 Comprehensive Code Update: Consideration of Amendments to the Chula
Vista Municipal Code
Adopt an ordinance amending Chula Vista Municipal Code (“CVMC”) Title 1
(General Provisions), Title 3 (Revenue and Finance), Title 5 (Business Licenses,
Taxes, and Regulations), Title 10 (Vehicles and Traffic), Title 12 (Streets and
Sidewalks), Title 15 (Buildings and Construction), Title 17 (Environmental Quality),
Title 18 (Subdivisions), Title 19 (Planning and Zoning), and Title 21 (Historic
Preservation). (Second Reading and Adoption)
Item 5.4 heading:
ORDINANCE NO. 3623 OF THE CITY OF CHULA VISTA COMPREHENSIVELY
AMENDING CHULA VISTA MUNICIPAL CODE TITLE 1 (GENERAL
PROVISIONS), TITLE 3 (REVENUE AND FINANCE), TITLE 5 (BUSINESS
LICENSES, TAXES AND REGULATIONS), TITLE 10 (VEHICLES AND TRAFFIC),
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TITLE 12 (STREETS AND SIDEWALKS), TITLE 15 (BUILDINGS AND
CONSTRUCTION), TITLE 17 (ENVIRONMENTAL QUALITY), TITLE 18
(SUBDIVISIONS), TITLE 19 (PLANNING AND ZONING), AND TITLE 21
(HISTORIC PRESERVATION) (SECOND READING AND ADOPTION)
5.5 Community Facilities District Annexation: Initiate Annexation of Eastlake Self
Storage Project into CFD No. 97-2
Adopt the following resolutions:
A. Setting forth the boundaries of the proposed Annexation No. 14 into CFD No.
97-2, Improvement Area “C”;
B. Setting forth the boundaries of the proposed Annexation No. 1 into CFD No. 97-
2, Improvement Area “D”;
C. Declaring the intention of the City Council to authorize the proposed Annexation
No. 14 into Improvement Area “C” of CFD No. 97-2, levy a Special Tax, and set a
time and place for the public hearing; and
D. Declaring the intention of the City Council to authorize the proposed Annexation
No. 1 into Improvement Area “D” of CFD No. 97-2, levy a Special Tax, and set a
time and place for the public hearing.
Item 5.5 headings:
A) RESOLUTION NO. 2026-075 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, ADOPTING AN ANNEXATION MAP SHOWING
TERRITORY PROPOSED TO BE ANNEXED TO IMPROVEMENT AREA “C” OF
COMMUNITY FACILITIES DISTRICT NO. 97-2 (PRESERVE MAINTENANCE
DISTRICT) OF THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA
B) RESOLUTION NO. 2026-076 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, ADOPTING A PROPOSED BOUNDARY MAP
DESIGNATING IMPROVEMENT AREA “D” OF COMMUNITY FACILITIES
DISTRICT NO. 97-2 (PRESERVE MAINTENANCE DISTRICT) OF THE CITY OF
CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AND
SHOWING TERRITORY PROPOSED TO BE ANNEXED TO SUCH
IMPROVEMENT AREA
C) RESOLUTION NO. 2026-077 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO AUTHORIZE THE
ANNEXATION OF TERRITORY TO COMMUNITY FACILITIES DISTRICT NO. 97-
2 (PRESERVE MAINTENANCE DISTRICT) OF THE CITY OF CHULA VISTA,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA AND IMPROVEMENT AREA
“C” THEREIN, AND TAKING OTHER ACTIONS RELATED THERETO
D) RESOLUTION NO. 2026-078 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, DECLARING ITS INTENTION TO DESIGNATE
IMPROVEMENT AREA “D” OF COMMUNITY FACILITIES DISTRICT N0. 97-2
(PRESERVE MAINTENANCE DISTRICT) OF THE CITY OF CHULA VISTA,
COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ANNEX TERRITORY AS
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ANNEXATION NO. 1 THERETO, AND TAKING OTHER ACTIONS RELATED
THERETO
5.6 Road Maintenance: Adopt a List of Projects for Fiscal Year 2026-27 Funded
by Senate Bill 1, the Road Repair and Accountability Act of 2017
Adopt a resolution approving the proposed list of projects for fiscal year 2026-27
funded by the Road Maintenance and Rehabilitation Account created by Senate
Bill 1: The Road Repair and Accountability Act of 2017.
Item 5.6 heading:
RESOLUTION NO. 2026-079 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 FUNDED
BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
5.7 Investment Report: Receive the Investment Report for Quarter Ending March
31, 2026
Receive the investment report for the quarter ending on March 31, 2026.
5.8 Open Space Districts: Initiate Proceedings, Approve the Engineer’s Report,
Declare the Intention to Levy and Collect Assessments for the Open Space
Districts for Fiscal Year 2026-27, and Set a Public Hearing
Adopt the following resolutions:
A. Initiating proceedings for the levy and collection of assessments for Fiscal Year
2026-27 for Open Space Districts 1 through 11, 14, 15, 17, 18, 20, 23, 24, 26, 31,
33, Eastlake Maintenance District No 1, Town Centre Maintenance District, and
Bay Boulevard Maintenance District pursuant to the Landscaping and Lighting Act
of 1972;
B. Approving the Engineer’s Report, declaring the intention to levy and collect
assessments; and setting a public hearing for July 14, 2026, regarding the Fiscal
Year 2026-27 assessments for Open Space Districts 2 through 11, 14, 15, 17, 18,
20 (Zones 1 through 4, 6, 8, and 9), 23, 24, 26, 31, 33, Eastlake Maintenance
District No 1, Town Centre Maintenance District, and Bay Boulevard Maintenance
District;
C. Approving the Engineer’s Report, declaring the intention to levy and collect
assessments; and setting a public hearing for July 14, 2026, regarding the fiscal
year 2026-27 assessments for Open Space District 1;
D. Approving the Engineer’s Report, declaring the intention to levy and collect
assessments; and setting a public hearing for July 14, 2026, regarding the fiscal
year 2026-27 assessments for Open Space District 20 Zone 5; and
E. Approving the Engineer’s Report, declaring the intention to levy and collect
assessments; and setting a public hearing for July 14, 2026, regarding the fiscal
year 2026-27 assessments for Open Space District 20 Zone 7.
Item 5.8 headings:
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A) RESOLUTION NO. 2026-080 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION
OF ASSESSMENTS FOR FISCAL YEAR 2026-27 FOR OPEN SPACE
DISTRICTS 1 THROUGH 11, 14, 15, 17, 18, 20, 23, 24, 26, 31, 33, EASTLAKE
MAINTENANCE DISTRICT NO. 1, TOWN CENTRE MAINTENANCE DISTRICT,
AND BAY BOULEVARD MAINTENANCE DISTRICT PURSUANT TO THE
LANDSCAPING AND LIGHTING ACT OF 1972
B) RESOLUTION NO. 2026-081 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER’S REPORT, DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A PUBLIC
HEARING REGARDING THE FISCAL YEAR 2026-27 ASSESSMENTS FOR
OPEN SPACE DISTRICTS 2 THROUGH 11, 14, 15, 17, 18, 20 (ZONES 1
THROUGH 4, 6, 8, AND 9), 23, 24, 26, 31, 33, EASTLAKE MAINTENANCE
DISTRICT NO 1, TOWN CENTRE MAINTENANCE DISTRICT, AND BAY
BOULEVARD MAINTENANCE DISTRICT
C) RESOLUTION NO. 2026-082 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER’S REPORT, DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A PUBLIC
HEARING REGARDING THE FISCAL YEAR 2026-27 ASSESSMENTS FOR
OPEN SPACE DISTRICT 1
D) RESOLUTION NO. 2026-083 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER’S REPORT, DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A PUBLIC
HEARING REGARDING THE FISCAL YEAR 2026-27 ASSESSMENTS FOR
OPEN SPACE DISTRICT 20 ZONE 5
E) RESOLUTION NO. 2026-084 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER’S REPORT, DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A PUBLIC
HEARING REGARDING THE FISCAL YEAR 2026-27 ASSESSMENTS FOR
OPEN SPACE DISTRICT 20 ZONE 7
5.9 Transfer Unclaimed Monies: Transfer Unclaimed Monies from the Deposits
Fund to the General Fund
Adopt a resolution transferring unclaimed monies in the amount of $18,583.24 from
the Deposits Fund to the General Fund.
Item 5.9 heading:
RESOLUTION NO. 2026-085 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA TRANSFERRING UNCLAIMED MONIES IN THE AMOUNT OF $18,583.24
FROM THE DEPOSITS FUND TO THE GENERAL FUND
5.10 Transfer Unclaimed Monies: Transfer Unclaimed Monies from the Cash Bond
Deposit Fund to the General Fund
Adopt a resolution transferring unclaimed monies in the amount of $7,442.30 from
the Cash Bond Deposit Fund to the General Fund.
Item 5.10 heading:
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Redevelopment Agency Meeting
Page 7
RESOLUTION NO. 2026-086 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA TRANSFERRING UNCLAIMED MONIES IN THE AMOUNT OF $7,442.30
FROM THE CASH BOND DEPOSIT FUND TO THE GENERAL FUND
5.11 Waiver of Development Impact Fees: Approve a Waiver of Parkland Fees for a
96-Unit Affordable Rental Housing Project within Otay Ranch Village 2
Adopt a resolution waiving parkland fees and obligations for a 96-unit affordable
rental housing project within Otay Ranch Village 2.
Item 5.11 heading:
RESOLUTION NO. 2026-087 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA WAIVING PARKLAND DEDICATION AND IN-LIEU FEE REQUIREMENTS
FOR A 96-UNIT AFFORDABLE RENTAL HOUSING PROJECT LOCATED WITHIN
OTAY RANCH VILLAGE 2
5.12 Vacation of Easement: Vacate Portion of Storm Drain Easement within Parcel
8 of Parcel Map No. 19543
Adopt a resolution approving the vacation of a portion of Storm Drain Easement
within Parcel 8 of Parcel Map No. 19543, which Easement is being abandoned in a
portion of its current alignment and being relocated to another part of the property.
Item 5.12 heading:
RESOLUTION NO. 2026-088 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA TO VACATE PORTION OF A STORM DRAIN EASEMENT WITHIN
PARCEL 8 OF PARCEL MAP NO. 19543
5.13 Housing Grant Funding: Approve the Fiscal Year 2026-27 U.S. Department of
Housing and Urban Development Annual Action Plan
Adopt the following resolutions:
A. Approving the Fiscal Year 2026-27 U.S. Department of Housing and Urban
Development annual spending plan for the Community Development Block Grant
and HOME Investment Partnerships Program within the 2026/27 Annual Action
Plan, authorizing the City Manager to execute subrecipient agreements,
memorandum of agreement(s), and all documents related to the grants; and
B. Approving the Fiscal Year 2026-27 annual spending plan for the Emergency
Solutions Grant within the 2026/27 Annual Action Plan, authorizing the City
Manager to execute subrecipient agreements and all documents related to the
grant.
Item 5.13 headings:
A) RESOLUTION NO. 2026-089 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE FISCAL YEAR 2026-27 U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT (HUD) SPENDING PLAN FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIPS PROGRAM AND AUTHORIZING THE CITY MANAGER TO
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2026-05-19 Regular City Council, Special Housing Authority, and Special Successor Agency to the
Redevelopment Agency Meeting
Page 8
EXECUTE SUBRECIPIENT AGREEMENTS AND ALL HUD DOCUMENTS
RELATED TO THE GRANTS
B) RESOLUTION NO. 2026-090 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE FISCAL YEAR 2026-27 U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT (HUD) SPENDING PLAN FOR THE
EMERGENCY SOLUTIONS GRANT AND AUTHORIZING THE CITY MANAGER
TO EXECUTE SUBRECIPIENT AGREEMENTS AND ALL HUD DOCUMENTS
RELATED TO THE GRANT
5.14 Property Management Agreement: Approve an Agreement with Ryan
Companies US, Inc. to Provide Property Management Services for the City-
Owned Building Located at 1775 Millenia Avenue
Adopt a resolution approving an agreement between the City of Chula Vista (“City”)
and Ryan Companies US, Inc. to provide property management services for the
Millenia Library Building located at 1775 Millenia Avenue.
Item 5.14 heading:
RESOLUTION NO. 2026-091 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING A PROPERTY MANAGEMENT AGREEMENT BETWEEN
THE CITY OF CHULA VISTA AND RYAN COMPANIES US, INC. FOR SERVICES
AT THE CITY-OWNED BUILDING LOCATED AT 1775 MILLENIA AVENUE
6. PUBLIC COMMENTS
Joseph Raso, Chula Vista resident, spoke regarding the City Council agenda-setting
process.
Angelica Martinez, Chula Vista resident, expressed concerns regarding potential tax
proposals and sewer rate increases
The following members of the public spoke regarding various topics:
John Acosta, Chula Vista resident
Robert
Pastor Francisco Castillo, representing Revive Church, spoke regarding volunteer
opportunities.
Michael Feinstein spoke in support of changes to the state's election system.
Craig Thomsen spoke regarding mobile home parking regulations.
Rita Byers, Chula Vista resident, submitted written comments related to Hilltop Park
irrigation system.
7. PUBLIC HEARINGS
7.1 TEFRA Hearing: Conduct Hearing to Approve the Issuance of Tax-Exempt
Multifamily Housing Revenue Bonds for the Otay Ranch II Affordable
Housing Project
Notice of the hearing was given in accordance with legal requirements, and the
hearing was held on the date and no earlier than the time specified in the notice.
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Redevelopment Agency Meeting
Page 9
Housing Manager Warwick and Director of Housing and Homeless Services Kurz
gave a presentation on the item.
Mayor McCann opened the public hearing.
Robert spoke in opposition to the item.
There being no further members of the public who wished to speak, Mayor
McCann closed the public hearing.
Moved by Councilmember Preciado
Seconded by Mayor McCann
To adopt Resolution No. 2026-092, the heading was read, text waived. The motion
was carried by the following vote:
Result, Carried (5 to 0)
Item 7.1 heading:
RESOLUTION NO. 2026-092 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY EXEMPT FACILITY BONDS FOR A QUALIFIED
RESIDENTIAL RENTAL PROJECT IN AN AGGREGATE PRINCIPAL AMOUNT
NOT TO EXCEED $80,000,000 FOR THE PURPOSE OF FINANCING OR
REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND
EQUIPPING OF OTAY RANCH II AND CERTAIN OTHER MATTERS RELATING
THERETO
7.2 Annual Budget: Consideration of Adopting the Fiscal Year 2026-27 Operating
and Capital Improvement Budgets and Revised Fiscal Year 2026-27
Compensation Schedule
Notice of the hearing was given in accordance with legal requirements, and the
hearing was held on the date and no earlier than the time specified in the notice.
Mayor McCann stated he would abstain from voting on Items 7.2B and 7.2D,
Councilmember Chavez stated she would abstain from voting on Items 7.2B and
7.2C, and Councilmember Inzunza stated he would abstain from voting on Item 7.2
E, all due to potential property-related conflicts of interest. They left the dais during
voting on the respective items.
Mayor McCann opened the public hearing.
Robert spoke regarding the item.
Public submitted written comments expressing concerns regarding the City’s
administrative staffing levels, budget balance, and expenditures related to World
Cup events.
There being no further members of the public who wished to speak, Mayor
McCann closed the public hearing.
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2026-05-19 Regular City Council, Special Housing Authority, and Special Successor Agency to the
Redevelopment Agency Meeting
Page 10
Moved by Mayor McCann
Seconded by Councilmember Preciado
To adopt City Council Resolution Nos. 2026-093, and 2026-098 through 2026-100,
Housing Authority Resolution No. 2026-005, and Successor Agency to the
Redevelopment Agency Resolution No. 2026-002. The headings were read, text
waived. The motion was carried by the following vote:
Result, Carried (5 to 0)
Item 7.2 A and F through J headings:
A) RESOLUTION NO. 2026-093 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT
BUDGETS FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2026-27 AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2027
EXCLUDING OPEN SPACE DISTRICTS: #01, #20 ZONE 5, #20 ZONE 7;
COMMUNITY FACILITIES DISTRICTS: 07-M, 97-1, 97-2, 99-2; AND CAPITAL
IMPROVEMENT PROJECT PRK0349
F) RESOLUTION NO. 2026-005 OF THE HOUSING AUTHORITY OF THE CITY
OF CHULA VISTA ADOPTING THE OPERATING BUDGET FOR THE HOUSING
AUTHORITY FOR FISCAL YEAR 2026-27 AND APPROPRIATING FUNDS FOR
THE FISCAL YEAR ENDING JUNE 30, 2027
G) RESOLUTION NO. 2026-002 OF THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING THE
OPERATING BUDGETS FOR THE SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY FOR FISCAL YEAR 2026-27 AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2027
H) RESOLUTION NO. 2026-098 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE COMPENSATION SCHEDULE AND
CLASSIFICATION PLAN TO REFLECT THE ADDITION OF VARIOUS POSITION
TITLES AND CHANGES IN SALARY AS REFLECTED IN THE FISCAL YEAR
2026-27 OPERATING BUDGET
I) RESOLUTION NO. 2026-099 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2026-27
COMPENSATION SCHEDULE EFFECTIVE JULY 10, 2026, AS REQUIRED BY
CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
J) RESOLUTION NO. 2026-100 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE AMENDED COMPENSATION SUMMARY FOR
ALL UNREPRESENTED EMPLOYEES AND ELECTED OFFICIALS, INCLUDING
AUTHORIZATION FOR THE MAYOR TO EXECUTE ANY NECESSARY
CONTRACT AMENDMENTS TO IMPLEMENT SAID AMENDED COMPENSATION
SUMMARY (4/5 VOTE REQUIRED)
Moved by Councilmember Preciado
Seconded by Deputy Mayor Fernandez
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Page 11
To adopt Resolution No. 2026-094 (Item 7.2B), the heading was read, text waived.
The motion was carried by the following vote:
Result, Carried (3 to 0)
Item 7.2B heading:
RESOLUTION NO. 2026-094 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ADOPTING THE OPERATING BUDGET FOR OPEN SPACE DISTRICT
#01 FOR FISCAL YEAR 2026-27 AND APPROPRIATING FUNDS FOR THE
FISCAL YEAR ENDING JUNE 30, 2027
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To adopt Resolution No. 2026-095 (7.2C), the heading was read, text waived. The
motion was carried by the following vote:
Result, Carried (4 to 0)
Item 7.2C heading:
RESOLUTION NO. 2026-095 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ADOPTING THE OPERATING BUDGET FOR OPEN SPACE DISTRICT
#20 ZONE 5 FOR FISCAL YEAR 2026-27 AND APPROPRIATING FUNDS FOR
THE FISCAL YEAR ENDING JUNE 30, 2027
Moved by Councilmember Inzunza
Seconded by Deputy Mayor Fernandez
To adopt Resolution No. 2026-096 (7.2D), the heading was read, text waived. The
motion was carried by the following vote:
Result, Carried (4 to 0)
Item 7.2D heading:
RESOLUTION NO. 2026-096 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ADOPTING THE OPERATING BUDGET FOR OPEN SPACE DISTRICT
#20 ZONE 7, COMMUNITY FACILITIES DISTRICT 07-M, AND CAPITAL
IMPROVEMENT BUDGET FOR PROJECT PRK0349 FOR FISCAL YEAR 2026-27
AND APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2027
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2026-05-19 Regular City Council, Special Housing Authority, and Special Successor Agency to the
Redevelopment Agency Meeting
Page 12
Moved by Mayor McCann
Seconded by Deputy Mayor Fernandez
To adopt Resolution No. 2026-097 (7.2E), the heading was read, text waived. The
motion was carried by the following vote:
Result, Carried (4 to 0)
Item 7.2E heading:
RESOLUTION NO. 2026-097 OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ADOPTING THE OPERATING BUDGET FOR COMMUNITY FACILITIES
DISTRICTS 97-1, 97-2, 99-2 FOR FISCAL YEAR 2026-27 AND APPROPRIATING
FUNDS FOR THE FISCAL YEAR ENDING JUNE 30, 2027
The meeting was recessed at 6:45 p.m. and reconvened at 7:01 p.m.
8. ACTION ITEMS
8.1 Consider Items Removed From the Consent Calendar, if Any
There were none.
8.2 Housing Authority & City Housing Funding: Approve a Funding Commitment
of up to $4,000,000 for the Park Hill UMC Development
Housing Manager Warwick and Director of Housing and Homeless Services Kurz
gave a presentation.
The following members of the public spoke in support of the item:
Rev. Luis Garcia, Chula Vista resident
Joel Hortiales, Chula Vista resident
The following members of the public spoke in opposition to the item:
Stephanie Rodriguez, Chula Vista resident
Carl Rodriguez, Chula Vista resident
Michael O'Steen, Chula Vista resident
Robert spoke, expressing a neutral position on the item.
William Klaser submitted written comments in opposition to the item.
Moved by Deputy Mayor Fernandez
Seconded by Councilmember Inzunza
To continue the item to a June meeting and direct staff to incorporate City Council
feedback into the agreement related to parking, drainage, and privacy
considerations associated with the project. The motion was carried by the following
vote:
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Page 13
Yes (4): Councilmember Chavez, Deputy Mayor Fernandez, Councilmember
Inzunza, and Councilmember Preciado
No (1): Mayor McCann
Result, Carried (4 to 1)
9. PUBLIC COMMENTS (CONTINUED)
The following members of the public spoke regarding concerns related to the proposed
storage facility project near Ridgewater Drive:
Joana Moreira, Chula Vista resident
Margarita Garcia, Chula Vista resident
10. CITY MANAGER’S REPORTS
10.1 Request for Clarification of Special Events Referral from May 5 City Council
Meeting
Item was not heard.
11. MAYOR’S REPORTS
Mayor McCann reported on attendance at recent events and made community
announcements.
12. COUNCILMEMBERS’ REPORTS
Councilmembers reported on attendance at recent events and made community
announcements.
Councilmember Chavez provided an update on the recent SANDAG board meeting.
At the request of Councilmember Inzunza, there was a consensus of the City Council to
revise the scope of his previous referral by reducing the audit period by two years and
directing the behested payment audit for events to begin in November 2022.
At the request of Deputy Mayor Fernandez, there was a consensus of the City Council to
direct staff to prepare a draft ordinance and policy recommendations related to
promoting workforce protection and economic continuity while balancing operational
flexibility for businesses, that included reviewing worker retention, recall, and successor-
employer ordinances adopted by other California municipalities; analyzing the City’s
legal authority and any potential state or federal preemption issues related to local
worker retention policies; evaluating policy options related to temporary business
closures, substantial renovations and tenant improvements, redevelopment-related
workforce displacement, and successor-employer obligations following changes in
operational control; and to consult with business stakeholders, including the local
Chamber of Commerce and South County EDC.
13. CITY CLERK'S REPORTS
There were none.
14. CITY ATTORNEY'S REPORTS
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Page 14
There were none.
15. CLOSED SESSION
Pursuant to Resolution No. 13706 and City Council Policy No. 346-03, the City Attorney
maintains official minutes and records of action taken during closed session.
City Attorney Verdugo announced that the City Council would convene in closed session
to discuss the items listed below.
The meeting was recessed at 8:45 p.m. and reconvened in closed session at 8:53 p.m.
with all members present.
15.1 Conference with Legal Counsel Regarding Existing Litigation Pursuant to
Government Code Section 54956.9(d)(1)
Greg Martinez, Chula Vista resident, spoke regarding Roxana Kennedy v. City of
Chula Vista, et al.
Name of case: A) City of Chula Vista v. Slade Fischer, et al., San Diego Superior
Court, Case No. 24CU006375C
Action: No reportable action
Name of case: B) Eric Crockett v. City of Chula Vista, et al., San Diego Superior
Court, Case No. 37-2024-00012828-CU-OE-CTL
Action: No reportable action
Name of case: C) Roxana Kennedy v. City of Chula Vista, et al., San Diego
Superior Court, Case No. 26CU026069C
Action: No reportable action
16. ADJOURNMENT
The meeting was adjourned at 9:22 p.m.
Minutes prepared by: Tyshar Turner, Deputy Director, City Clerk Services
_________________________
Kerry K. Bigelow, MMC, City Clerk
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v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
CIP Creation and Appropriation of Funds: Establish a New CIP Project (GGV0238), Amend the Fiscal Year
2025-26 Operating and Capital Improvement Program Budgets and Appropriate Funds, and Amend the
Measure P Expenditure Plan
Report Number: 26-0168
Location: 1800 Maxwell Road
Department: Public Works
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California
Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities).
Recommended Action
Adopt a resolution, A) establishing a new Capital Improvement Project entitled “Public Works Roof”
(GGV0238), B) amending the Fiscal Year 2025-26 Operating and Capital Improvement Program Budgets and
appropriating funds, and C) amending the Measure P Infrastructure, Facilities, and Equipment Expenditure
Plan (4/5 Vote Required).
SUMMARY
The Public Works Department is primarily housed at 1800 Maxwell Road – the Public Works Corporation
Yard. This property includes the main administrative building for the department as well as its Fleet facilities
and storage yard. The administrative building is over twenty years old and in need of substantial repairs. The
roof has reached end-of-life and requires replacement.
The Public Works Departments recommends the replacement of the roof of the administrative building at
the Public Works Corporation Yard. Adoption of this resolution authorizes the City to proceed with the
project, appropriates and reallocates funds from the Measure P Fund for fiscal year 2025-26 to fund the
project, and amends the Measure P Infrastructure, Facilities, and Equipment Expenditure Plan to allocate
funds accordingly.
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ENVIRONMENTAL REVIEW
The proposed project has been reviewed for compliance with the California Environmental Quality Act
(CEQA), and it has been determined that the project qualifies for a Categorical Exemption pursuant to State
CEQA Guidelines Section 15301 Class 1 (Existing Facilities), because the proposed project would not result
in a significant effect on the environment, create a cumulative impact, damage a scenic highway, or cause a
substantial adverse change in the significance of a historical resource. Thus, no further environmental review
is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On May 14, 2026, the Measure P Citizens’ Oversight Committee (COC) affirmed that the proposed
amendments to the fiscal year 2025-26 budget for the Measure P Sales Tax Fund are in compliance with the
City’s approved Infrastructure, Facilities, and Equipment Expenditure Plan.
DISCUSSION
The Public Works Department is responsible for providing and managing the City's infrastructure and open
space through high quality operations, maintenance and construction to optimize mobility, public and
environmental health and safety.
The Public Works Department is primarily housed at 1800 Maxwell Road – a property which includes the
main administrative building for the department as well as its Fleet facilities and storage yard. This facility
is over twenty years old and in need of substantial repairs. In particular, the roof of the administrative
building has reached its end-of-life and requires replacement. There are significant leaks during rain events
throughout the building that can no longer be repaired.
The City Council previously approved a contract with Garland DBS for roof replacement and maintenance;
that contract will be used for this project. The Public Works Department solicited a service proposal from
Garland DBS and on January 23, 2026 received one for $1,861,126. This proposal’s Scope of Work includes
removing and disposing of all existing (obsolete) solar paneling, tearing off the existing roof system to its
structural deck, repairing that decking, installing new base sheeting, installing new curb and wall base
flashings, installing new roof penetration coverings and installing new sheet metal roofing. The project’s
proposed budget is $2,014,367, which encompasses all anticipated costs and contingencies.
Adoption of the resolution would 1) establish a new CIP Project “Public Works Roof” (GGV0238), 2) amend
the Fiscal Year 2025-26 Operating and Capital Improvement Program Budgets to appropriate and reallocate
funds accordingly, and 3) amend the Measure P Infrastructure, Facilities, and Equipment Expenditure Plan
to include the following updates:
Allot $1,714,367 in unallocated Measure P funds for the replacement of the Public Works
Corporation Yard Roof (GGV0238) in the Other Public Facilities Spending Category
Reallocation $300,000 from Asset Management (GGV0222) to the Public Works Corporation Yard
Roof (GGV0238) project in the Other Public Facilities Spending Plan Category.
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P a g e | 3
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings
within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item
does not present a disqualifying real property-related financial conflict of interest under California Code of
Regulations Title 2, section 18702.2(a)(7) or (8), for the purposes of the Political Reform Act (Cal. Gov’t Code
§87100, et seq.).
Staff is not independently aware, and has not been informed by Council members, of any other fact that
may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of this resolution amends the Fiscal Year 2025-26 Operating and Capital Improvement Projects
Program Budget by the following:
Appropriating $1,714,367 from the available fund balance in the Measure P Fund to Project GGV0238
(Public Works Roof)
Reallocating $300,000 from the previously appropriated Asset Management project (GGV0222) to
Project GGV0238 (Public Works Roof)
The total funding available for the Public Works Roof project will be $2,014,367.
ONGOING FISCAL IMPACT
Ongoing costs of the project will primarily consist of routine maintenance and periodic minor repairs
necessary to preserve the roof’s condition and extend its useful life. These expenses will be incorporated into
future budgets as part of the regular budget development process.
ATTACHMENTS
1. Updated Measure P Expenditure Plan for Fiscal Year 2025-26 as approved by the COC on May 14, 2026
Staff Contact: Angelica Aguilar, Director of Public Works
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RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA 1) ESTABLISHING A NEW CAPITAL
IMPROVEMENT PROJECT ENTITLED “PUBLIC WORKS
ROOF (GGV0238)”; 2) AMENDING THE FISCAL YEAR 2025-
26 OPERATING AND CAPITAL IMPROVEMENT PROGRAM
BUDGETS AND APPROPRIATING FUNDS THEREFOR; AND
3) AMENDING THE MEASURE P INFRASTRUCTURE,
FACILITIES, AND EQUIPMENT EXPENDITURE PLAN
WHEREAS, the City has need for replacement of the roof of the Administration building
at the Public Works Corporation Yard, which has reached the end of its service-life; and
WHEREAS, the City previously entered into a Cooperative Purchasing Agreement with
Garland DBA, Inc., to provide Roofing Replacement, Repair, and Maintenance to City facilities;
and
WHEREAS, Garland DBS provided a quote for the replacement of the Public Works roof
of $1,861,126, resulting in a total project budget including contingency of $2,014,367; and
WHEREAS, sufficient funds have been identified within the Measure P Fund to be
appropriated and reallocated to fund this project; and
WHEREAS, staff recommends establishing a new Capital Improvement Project entitled
“Public Works Roof (GGV0238)”; and
WHEREAS, staff also recommends appropriating $1,714,367 from the available fund
balance of the Measure P Fund for the replacement of the Public Works Corporation Yard Roof to
GGV0238 and reallocating $300,000 in Measure P funds from the Asset Management project
(GGV0222) to GGV0238; and
WHEREAS, staff further recommends amendment of the Measure P Infrastructure,
Facilities, and Equipment Expenditure Plan to reflect the proposed changes.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it approves the following:
Establishing a new Capital Improvement Project (CIP) “Public Works Roof CIP
(GGV0238)”; and
Amending the Fiscal Year 2025-26 Operating and Capital Improvement Program
Budgets and appropriating $1,714,367 in available Measure P Funds to the newly
established CIP GGV0238 and transferring $300,000 in Measure P funds from the
existing Asset Management (GGV0222) project to the newly established GGV0238
project; and
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Amending the Measure P Infrastructure, Facilities, and Equipment Expenditure
Plan to reflect the allocated funds.
Presented by Approved as to form by
Angelica Aguilar Marco Verdugo
Director of Public Works City Attorney
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May-26
Infrastructure, Facilities and Equipment Spending Plan ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL CARRYFORWARD ESTIMATED PROPOSED AMENDED ESTIMATED
One-half cent Sales Tax Revenues over 10 year period FROM CHANGES Original
April 2026 Revision Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Total
2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2024-25 2025-26 2025-26 2025-26 2026-27 10 Year Term
(1 Qtr Only)(3 Qtrs Only)
Estimated Revenues:
A Estimated 1/2 cent Sales Tax Revenues 3,906,919$ 18,161,109$ 20,016,492$ 20,037,276$ 23,629,265$ 27,402,122$ 28,286,339$ 29,183,788$ 29,405,839$ -$ 30,464,372$ -$ 30,464,372$ 23,176,548$ 253,670,070$
ESTIMATED TOTAL REVENUES 3,906,919$ 18,161,109$ 20,016,492$ 20,037,276$ 23,629,265$ 27,402,122$ 28,286,339$ 29,183,788$ 29,405,839$ -$ 30,464,372$ -$ 30,464,372$ 23,176,548$ 253,670,070$
Proposed Expenditures
B Fire Vehicles 113,625 2,194,778 2,664,797 479,970 199,567 1,839,574 93,976 224,793 1,925,843 4,389,924 118,700 - 118,700 810,050 15,055,598
C Police Vehicles 168,703 1,820,542 712,253 708,702 1,610,594 432,693 842,282 1,580,229 1,620,724 244,290 2,794,317 - 2,794,317 633,733 13,169,062
Total Public Safety Vehicles 282,328 4,015,321 3,377,049 1,188,672 1,810,161 2,272,267 936,258 1,805,022 3,546,567 4,634,215 2,913,017 - 2,913,017 1,443,783 28,224,660
D Non-Safety City Vehicles (i.e. Public Works Crews) - 1,167,612 1,850,083 1,475,709 483,410 2,182,186 2,381,972 1,876,175 518,290 449,663 - - - - 12,385,100
E Fleet Infrastructure - 56,070 - - - 67,980 21,503 822,816 23,822 103,879 - - - - 1,096,070
Total Non-Safety City Vehicles - 1,223,682 1,850,083 1,475,709 483,410 2,250,166 2,403,475 2,698,991 542,112 553,541 - - - - 13,481,170
F Fire Equipment (i.e. breathing apparatus, Radios etc) 175,064 180,745 108,045 200,738 114,933 161,044 9,588 15,999 416,549 632,868 1,435,251 - 1,435,251 1,747,090 5,197,914
G Police Equipment (i.e. body worn cameras, video camera equip etc)- - 160,012 13,154 2,188 5,217 5,724 40,294 - 247,251 32,739 - 32,739 37,739 544,318
H Police Communications & Dispatch System 17,660 - - 192,298 205,459 214,299 194,862 204,466 418,996 719,372 570,338 - 570,338 581,385 3,319,135
Total Public Safety Equipment 192,724 180,745 268,057 406,190 322,580 380,560 210,174 260,759 835,545 1,599,491 2,038,328 - 2,038,328 2,366,214 9,061,367
I Fire Station Repair/Replacements 10,911 96,146 540,536 6,741,560 13,905,904 922,282 208,316 4,915,041 2,828,542 769,197 - - - - 30,938,436
J Police Facility Repairs 8,760 252,117 398,400 62,780 107,797 319,509 104,474 51,157 75,609 21,319,813 - - - - 22,700,416
Total Public Safety Buildings 19,671 348,263 938,936 6,804,339 14,013,701 1,241,792 312,790 4,966,198 2,904,151 22,089,010 - - - - 53,638,852
K Homeless Encampment Cleanup - - - - - - - - - 1,000,000 - - - - 1,000,000
Total Other Public Safety - - - - - - - - - 1,000,000 - - - - 1,000,000
L Recreation Centers and Senior Center - 86,046 505,371 2,172,625 1,688,383 8,026,991 13,516,500 134,631 1,860,126 1,161,240 - - - - 29,151,914
M Civic Center and South Chula Vista Libraries - 276,021 954,361 375,889 110,420 293,830 677,135 20,774 64,833 2,014,014 - - - - 4,787,277
N Other Public Facilities (i.e. Animal Care Facility & Living Coast DC) 4 - 121,025 947,312 1,001,856 1,421,030 616,523 410,814 446,260 2,276,800 5,187,452 133,333 1,714,367 1,847,700 133,334 14,410,106
Total Other Public Facilities - 483,092 2,407,045 3,550,369 3,219,832 8,937,345 14,604,450 601,665 4,201,760 8,362,705 133,333 1,714,367 1,847,700 133,334 48,349,297
O Sports Courts and Fields 73,718 285,032 392,251 12,357 70,875 - 572,748 - 539,291 1,419,101 - - - 3,365,373
P Park Infrastructure 111,901 397,665 844,649 745,476 2,015,565 1,467,307 996,945 1,269,842 2,122,741 5,865,297 1,000,000 - 1,000,000 500,000 17,337,389
Street Pavement (Arterials/Collectors/Residential)340,555 2,352,546 5,088,793 12,187,144 673,131 712 13,162 2,354 - 2,247,912 - - - - 22,906,309
R Traffic Signal System (Fiber Network)- 99,100 161,435 113,651 273,909 1,841,639 2,745,416 221,168 - 1,518,683 25,000 - 25,000 - 7,000,000
S Other Public Infrastructure (Storm Drains, Sidewalks, Trees etc)- 680,147 4,024,021 5,650,017 1,150,128 1,510,083 735,538 254,832 852,507 10,703,366 2,226,813 - 2,226,813 - 27,787,453
T Citywide Network Replacement - 1,693,275 314,997 74,062 - - - - 13,594 674,783 129,986 - 129,986 2,900,697
U Citywide Telecommunications - 1,498,400 299,683 79,283 26,895 1,634,978 - - - - - - - - 3,539,239
Total Infrastructure 526,174 7,006,165 11,125,830 18,861,989 4,210,504 6,454,719 5,063,809 1,748,196 3,528,132 22,429,142 3,381,799 - 3,381,799 500,000 84,836,460
Projects to be Financed through Annual Capital Lease Payments
V Police Communications & Dispatch System - 256,616 - 170,238 170,238 170,238 170,238 170,238 (34,228) 1 170,238 - 170,238 - 1,243,819
W Regional Communications System (RCS) 1,383,113 507,115 345,261 345,261 345,261 345,261 345,261 345,261 345,261 (294,550) - - - - 4,012,503
X Fire Response Vehicles - 382,121 382,121 382,121 382,122 759,824 759,824 759,824 759,824 40,353 780,000 - 780,000 137,950 5,526,083
Total Public Safety Capital Lease Pmts 1,383,113 1,145,851 727,382 897,620 897,621 1,275,323 1,275,323 1,275,323 1,070,857 (254,196) 950,238 - 950,238 137,950 10,782,406
TOTAL EXPENDITURES 2,404,011 14,403,119 20,694,382 33,184,889 24,957,809 22,812,172 24,806,279 13,356,154 16,629,124 60,413,909 9,416,715 1,714,367 11,131,082 4,581,281 249,374,212
Bond Proceeds:
Y Bond Proceeds - 71,363,509 - - - - - - - - - - - - 71,363,509
Z Cost of Issuance (46,843) (554,723) (2,000) (2,000) (6,000) (4,000) (4,000) (4,200) (4,266) - - - - (628,032)
TOTAL BOND PROCEEDS (46,843) 70,808,786 (2,000) (2,000) (6,000) (4,000) (4,000) (4,200) (4,266) - - - - - 70,735,477
Investment Earnings:
A Investment Earnings - 936,155 1,711,589 1,648,047 (86,862) 496,830 531,941 799,940 1,184,961 - - - - 7,222,600
TOTAL INVESTMENT EARNINGS 2, 3 - 936,155 1,711,589 1,648,047 (86,862) 496,830 531,941 799,940 1,184,961 - - - - - 7,222,600
Misc. Revenues:
AB Miscellaneous Revenues - 58 152,440 80,150 3,038 3,153 468 108,745 156,067 - - - - 504,118
TOTAL MISCELLANEOUS REVENUES - 58 152,440 80,150 3,038 3,153 468 108,745 156,067 - - - - - 504,118
Bond Debt Service:
A Debt Service Principal - 5,550,000 5,330,000 5,605,000 5,885,000 7,159,621 6,999,403 6,837,433 6,994,686 - 6,810,000 6,810,000 7,150,000 64,321,143
A Debt Service Interest - 2,324,334 2,790,250 2,523,750 2,243,500 974,625 805,900 665,168 506,220 - 698,000 698,000 357,500 13,889,248
TOTAL DEBT SERVICE - 7,874,334 8,120,250 8,128,750 8,128,500 8,134,246 7,805,303 7,502,601 7,500,906 - 7,508,000 - 7,508,000 7,507,500 78,210,390
Administrative Expenses:
A Audit/Admin - 5,000 5,150 - 16,364 14,318 42,226 14,854 159,839 350,925 25,000 25,000 25,750 659,425
A Bond Administration - 4,666 5,093 6,852 5,752 6,037 2,815 9,844 17,127 - 7,696 7,696 7,850 73,732
TOTAL ADMINISTRATIVE EXPENSES - 9,666 10,243 6,852 22,116 20,354 45,041 24,698 176,965 350,925 32,696 - 32,696 33,600 733,157
Annual Surplus/Deficit 1,456,065$ 67,618,990$ (6,946,354)$ (19,557,018)$ (9,568,985)$ (3,068,668)$ (3,841,876)$ 9,204,819$ 6,435,606$ (60,764,833)$ 13,506,960$ (1,714,367)$ 11,792,593$ 11,054,167$ 3,814,506$
1 Audited Total
2 Investment Returns are posted in arrears
3 Does not include audited total for 4404 - Change in Value
4 Includes $300K in Carryforward appropriation transfered from Asset Management project and additional $1,714,367 for PW Corp Yard Roof Page 43 of 761
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June 2, 2026
ITEM TITLE
Contract Award and CIP Budget Transfer: Accept Bids and Award a Public Works Contract to Nu Line
Technologies for “CMP Rehab Outside Right-Of-Way Phase III Measure P” (DRN0219); Amend the Fiscal Year
25-26 CIP Budget by Transferring Funds to DRN0219
Report Number: 26-0177
Location: No specific geographic location
Department: Engineering and Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines
Section 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).
Recommended Action
Adopt a resolution (1) accepting bids and awarding a public works contract to Nu Line Technologies, LLC for
the "CMP Rehab Outside Right-Of-Way Phase III - Measure P” (DRN0219) project; and (2) amending the
fiscal year 2025-26 capital improvement program (CIP) budget by transferring $600,000 in Measure P funds
from the available balance of “Erosion Repair Outside ROW Fresno/Main” (DRN0220) project to CIP Project
DRN0219, for completion of the project.
SUMMARY
On April 15, 2026, the Director of Engineering and Capital Projects received two (2) sealed bids for the "CMP
Rehab Outside Right-Of-Way Phase III - Measure P” (DRN0219) project. After reviewing the bids, staff
recommends awarding a public works contract to the lowest responsive and responsible bidder, Nu Line
Technologies, LLC. Adoption of the resolution would: (1) accept bids and award the public works contract
to Nu Line Technologies, LLC in the amount of $2,579,852; and (2) amend the fiscal year 2025-26 CIP budget
by transferring $600,000 in Measure P funds from the available balance of the “Erosion Repair Outside ROW
Fresno/Main” (DRN0220) project to CIP Project DRN0219.
ENVIRONMENTAL REVIEW
The proposed project has been reviewed for compliance with the California Environmental Quality Act
(CEQA), and it has been determined that the project qualifies for a Categorical Exemption pursuant to State
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CEQA Guidelines Section 15301 (Existing Facilities), which consists of the operation, repair, maintenance,
permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities,
mechanical equipment, or topographical features, involving negligible or no expansion of existing or former
use; 15302 (Replacement or Reconstruction), which consists of replacement or reconstruction of existing
structures and facilities where the new structure will be located on the same site as the structure replaced
and will have substantially the same purpose and capacity as the structure replaced; and where the
exceptions listed in State CEQA Guidelines Section 15300.2 would not apply in that no cumulative impacts
were identified, no significant effects on the environment were identified, the project is not adjacent to a
scenic highway, no historical resources would be affected by the action, and the project was not identified on
a list of hazardous waste sites pursuant to Section 65962.5 of the Government Code. Thus, no further
environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
This action does not alter the Measure P Expenditure Plan, both projects are within the Other Public
Infrastructure spending plan category; therefore, no update or presentation to the Measure P Citizens
Oversight Committee is required.
DISCUSSION
The "CMP Rehab Outside Right-Of-Way Phase III - Measure P” (DRN0219) project will primarily consist of
corrugated metal pipe (CMP) rehabilitation at various locations throughout the City.
Bidding Process
On March 20, 2026, the Engineering and Capital Projects Department advertised the project. Two (2) bids
were received on April 15, 2026. The submitted base bid totals from the prime contractors were as follows:
Ranking Contractor Submitted Base Bid Amount
The low bid of $2,579,852, by Nu Line Technologies, LLC, is approximately 21.8% higher than the Engineer's
estimate of $2,118,389. Nu Line Technologies, LLC is currently an active licensed contractor (License No.
997520) with the following classifications: A- General Engineering.
Staff recommends accepting bids and awarding the public works contract for the "CMP Rehab Outside Right-
Of-Way Phase III - Measure P” (DRN0219) project to the lowest responsive and responsible bidder, Nu Line
Technologies, LLC. Staff also recommends transferring $600,000 in Measure P funds from the available
balance of the completed “Erosion Repair Outside ROW Fresno/Main” DRN0220 project to CIP Project
DRN0219 to supplement the project budget, as described in the current-year fiscal impact section. Project
DRN0220 was completed under budget, and the remaining funds are now available for reallocation.
Disclosure Statement
Attachment 1 is a copy of the Contractor's Disclosure Statement.
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Wage Statement
The Contractor that is awarded the contract and its subcontractors are required to pay prevailing wage to
persons employed by them for work under this contract. The prevailing wage scales are those determined
by the Director of Industrial Relations, State of California (“DIR”).
This project is also subject to the City’s Project Labor Agreement (“PLA”). The Contractor and all
subcontractors shall comply with all applicable terms and conditions of the PLA.
DECISION-MAKER CONFLICT
Staff have reviewed the property holdings of the City Council members and have found no property holdings
within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item
does not present a disqualifying real property-related financial conflict of interest under California Code of
Regulations Title 2, section 18702.2 (a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov't Code
§87100, et seq.).
Staff are not independently aware and has not been informed by any City Council member of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Adoption of the resolution amends the fiscal year 2025-26 CIP budget by transferring $600,000 in Measure
P funds from the available balance of the completed “Erosion Repair Outside ROW Fresno/Main” DRN0220
project to CIP Project DRN0219.
A summary of expected project costs and available funding for DRN0219 is as follows:
A. Contract Amount $2,579,852
B. Contract Contingency (Approx 16%) $412,957
C. Construction Support (Approx 16%) $412,957
D. Design (Approx 5%) $128,993
E. Survey (Approx 1%) $20,638
A. Measure P Fund (Acct: DRN0219-220) $2,955,397
B. Transfer Measure P Funds from DRN0220 $600,000
ONGOING FISCAL IMPACT
The proposed award and budget transfer will have no ongoing fiscal impact. All costs associated with the
completion of CIP Project DRN0219 will be covered within the project budget, with no additional funding
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required. Upon completion of the project, the improvements will require routine storm drain maintenance,
which will be incorporated as part of the annual budget development process in future years.
ATTACHMENTS
1. Disclosure Statement
Staff Contact: Luis Schaar, PE, City Engineer/Director of Engineering & Capital Projects
Nolan Huelsman, PE, Principal Engineer
Valeria Ceron, EIT, Associate Engineer
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Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) ACCEPTING BIDS AND AWARDING A
PUBLIC WORKS CONTRACT FOR THE “CMP REHAB
OUTSIDE RIGHT OF WAY PHASE III - MEASURE P
(DRN0219)” PROJECT TO NU LINE TECHNOLOGIES, LLC.,
AND (2) AMENDING THE FY 2025-26 CIP PROGRAM
BUDGET BY TRANSFERING FUNDS FROM THE “EROSION
REPAIR OUTSIDE ROW FRESNO/MAIN” (DRN0220)
PROJECT TO CIP PROJECT DRN0219
WHEREAS, on March 20, 2026, the Department of Engineering and Capital Projects
solicited bids for the “CMP Rehab Outside Right-Of-Way Phase III - Measure P (DRN0219)”
project (“Project”) in accordance with Chula Vista Municipal Code section 2.56.160(A); and
WHEREAS, on April 15, 2026, the Director of Engineering and Capital Projects received
two (2) sealed bids for the Project; and
WHEREAS, the low bid for the Project was submitted by Nu Line Technologies, LLC in
the amount of $2,579,852, which is higher than the Engineer’s estimate of $2,118,389 by $461,463
(or approximately 21.8%); and
WHEREAS, staff have determined that the bid submitted by Nu Line Technologies, LLC
is responsive in all material respects to the bid specifications and requirements, and that Nu Line
Technologies, LLC is the lowest responsive and responsible bidder; and
WHEREAS, staff recommends awarding the public works contract for the Project to Nu
Line Technologies, LLC in the amount of $2,579,852; and
WHEREAS, in order to proceed with the construction phase of the project, staff
recommends transferring 600,000 from CIP DRN0220 to CIP DRN0219 to cover the anticipated
costs of the construction phase of the project; and
WHEREAS, this action does not alter the Measure P Expenditure plan; therefore, approval
from the Measure P Citizens Oversight Committee is not required.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it:
1. Accepts bids and awards the public works contract for “CMP Rehab Outside Right-Of-
Way Phase III- Measure P (DRN0219)” project to Nu Line Technologies, 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 in the amount of $2,579,852
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Resolution No.
Page 2
2. Amends the FY 2025-26 CIP Program budget by transferring $600,000 from the
“Erosion Repair outside ROW Fresno/Main” (DRN0220) project to the “CMP Rehab
Outside Right-Of-Way Phase III- Measure P (DRN0219)” project.
Presented by Approved as to form by
Luis Schaar Marco A. Verdugo
Director of Engineering and City Attorney
Capital Projects/City Engineer
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CITY OF CHULA VISTA DISCLOSURE STATEMENT
Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action
by the Council, Planning Commission and all other official bodies of the City of Chula Vista (the "City"),
a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions
for a City election must be filed. The following information must be disclosed:
1. 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, material supplier.
Dominic Burtech Frank Durazo
Julie Burtech Salvador Aquino
2. If any person* identified pursuant to item one (1) above is a corporation or partnership, list the
names of all individuals with a two thousand dollars ($2,000) investment in the business
corporation/partnership) entity.
Dominic Burtech Frank Durazo
Julie Burtech Salvador Aquino
3. If any person* identified pursuant to item one (1) above is a non-profit organization or trust, list
the names of any person serving as director of the non-profit organization or as trustee or
beneficiary or trustor of the trust.
N/A
4. Please identify every person, including any agents, employees, consultants, or independent
contractors you have assigned to represent you before the City in this matter.
N/A
5. Has any person* associated with this contract had any financial dealings with an official** of the
City as it relates to this contract within the past twelve (12) months? Yes No X
N/A
If Yes, briefly describe the nature of the financial interest the official** may have in this contract.
Rev.11/07/2025
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A
6. Have you made a contribution of more than two hundred fifty dollars ($250) within the past twelve
12) months to a current member of the Chula Vista City Council? No X Yes _ If yes, which
Council member?
N/A
Have you provided more than three hundred forty dollars ($340), or an item of equivalent value, to
an official** of the City in the past twelve (12) months? (This includes being a source of income,
money to retire a legal debt, gift, loan, etc.) Yes _ No X
If Yes, which official** and what was the nature of item provided?
N/A
Date: 91612,(o
Nu Line Technologies, LLC
Name of Company, Firm or Entity
Signature
Dominic 6rtech
Print or pe name of Contractor/Applicant
Partner
Title
Person is defined as: any individual, firm, co -partnership, joint venture, association, social club,
fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city,
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.
Rev.11/07/2025
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June 2, 2026
ITEM TITLE
City Boards and Commissions: Designation of Financial Oversight Training Requirements as Required by
Senate Bill 827 (2025)
Report Number: 26-0149
Location: No specific geographical location
Department: City Clerk
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3), no environmental review is required.
Recommended Action
Approve a resolution designating members of the following Boards and Commissions, which are not
otherwise designated as filing officials under the City’s Conflict of Interest Code, as subject to the financial
oversight training requirements established under Senate Bill 827 (2025), and requiring completion of such
training in accordance with applicable law:
Board of Library Trustees
Cultural Arts Commission
Health, Wellness, & Aging Commission
Measure A Citizens’ Oversight Committee
Measure P Citizens’ Oversight Committee
Parks and Recreation Commission
SUMMARY
Senate Bill 827 (SB 827, 2025) requires certain local officials and members of boards and commissions with
responsibilities related to the oversight or recommendation of public funds to complete financial oversight
training. Members designated to file a Form 700 under the City’s Conflict of Interest Code are already subject
to this requirement. Adoption of the proposed resolution will designate additional Boards and Commissions
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that are not Form 700 filers, but provide financial advisory input, recommendations, or review related to
fiscal matters, as subject to the SB 827 training requirement.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under
Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Thus, no environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
Senate Bill 827 (SB 827, 2025) requires members of local agency legislative bodies, including designated
members of certain appointed Boards and Commissions, to complete mandated financial oversight training
when those bodies have responsibilities related to the review, recommendation, or oversight of public funds.
The legislation applies to bodies that, while not necessarily exercising direct fiscal authority, provide
advisory input or policy recommendations that influence the allocation, management, or use of public
resources.
On April 14, 2026, the City Council approved updates to the City’s Conflict of Interest Code that expanded the
list of designated positions required to file the Form 700 and also made those designated filers subject to the
fiscal and financial oversight training requirements established under SB 827.
Staff has reviewed the City’s existing Boards and Commissions and identi fied additional commissions that
are required to file the Form 700, but that meet the criteria outlined in SB 827 based on their authority,
responsibilities, and involvement in financial matters. Specifically, these bodies provide financial advisory
input, recommendations, or review related to fiscal matters, which triggers the applicability of SB 827
training obligations notwithstanding their non-designated filer status. The proposed designations ensure
compliance with State law and promote transparency and accountability in the City’s financial decision-
making processes.
Pursuant to Government Code Section 53238, the required financial oversight training must be at least two
hours in duration for each completion. Members who assume office on or after January 1, 2026, are required
to complete the training within six months of assuming their position. Members serving in a designated
position prior to January 1, 2026, must complete the training by January 1, 2028. Thereafter, all covered
members, including designated Form 700 filers and the boards and commissions identified in Attachment 1,
are required to complete training again at least once every two years to remain in compliance.
The City will use one of its existing training platforms, NetFile, to provide training and track completion.
NetFile will be used to generate and send notifications to applicable members regarding training
requirements, completion status, and upcoming renewal deadlines.
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Additionally, an annual report will be provided to the City Council summarizing board and commission
member compliance with SB 827 training requirements, including completion status and any outstanding
deficiencies.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and, consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The increase of $800 for training materials and course access will be funded within current year budget
appropriations.
ONGOING FISCAL IMPACT
The ongoing cost to implement and maintain compliance with SB 827 training requirements is estimated at
approximately $3,500 annually. This includes expenses related to training materials, course access, and
administrative coordination to track and report compliance. These costs will be considered as part of the
City’s annual operating budget.
This amount reflects not only the Boards and Commissions addressed in this report, but also additional
individuals serving in designated filing positions identified in the City’s Conflict of Interest Code , who are
subject to applicable state-mandated training requirements.
ATTACHMENTS
1. Exhibit 1 to Resolution - List of Designated Boards and Commissions Subject to SB 827 Training
Requirements
Staff Contact: Audrey Malone, Deputy Director, City Clerk Services
Kerry K. Bigelow, City Clerk
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Form Rev 4/7/2026
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DESIGNATING CERTAIN BOARDS AND
COMMISSIONS NOT IDENTIFIED IN THE CITY’S CONFLICT
OF INTEREST CODE AS SUBJECT TO FINANCIAL
OVERSIGHT TRAINING REQUIREMENTS PURSUANT TO
SENATE BILL 827 (GOVERNMENT CODE SECTION 53238 ET
SEQ.)
WHEREAS, Senate Bill 827 (SB 827, 2025), codified in California Government Code
Section 53238 et seq., requires members of local agency legislative bodies to complete financial
oversight training when such bodies have authority over, or provide recommendations regarding,
public funds; and
WHEREAS, Government Code Section 54952 defines “legislative body” to include certain
appointed boards, commissions, and committees of a local agency; and
WHEREAS, the purpose of SB 827 is to promote transparency, accountability, and
informed decision-making by ensuring that members of legislative bodies involved in financial
oversight have a foundational understanding of public finance, budgeting, and fiscal
responsibilities; and
WHEREAS, the City Clerk and City Attorney have reviewed the roles and responsibilities
of the City’s boards and commissions and have identified certain bodies that meet the criteria
outlined in SB 827 based on their involvement in reviewing, advising on, or making
recommendations related to public financial matters; and
WHEREAS, on April 14, 2026, the City Council designated positions required to file
Statements of Economic Interests (Form 700) under the City’s Conflict of Interest Code as subject
to the financial oversight training requirements established by SB 827 with the adoption of
Resolution No. 2026-[TBD]; and
WHEREAS, additional City boards and commissions provide advisory input or
recommendations related to the oversight or use of public funds and therefore meet the criteria for
financial oversight training under SB 827, even though members of those bodies are not designated
to file Form 700 under the City’s Conflict of Interest Code; and
WHEREAS, the City Council wishes to designate the boards and commissions identified
in Exhibit 1 to this resolution, which are not designated as filing officials under the City’s Conflict
of Interest Code, as subject to the financial oversight training requirements of SB 827; and
WHEREAS, Government Code Section 53238 requires that members of designated
legislative bodies complete financial oversight training of at least two hours in duration within the
applicable timeframe and complete refresher training at least once every two years thereafter; and
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Resolution No.
Page 2
WHEREAS, the City will utilize its existing compliance tracking system, NetFile, to
monitor training completion and provide notifications to applicable members regarding training
requirements, deadlines, and compliance status.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that the boards and commissions identified in Exhibit 1 to this resolution, incorporated herein by
reference, a copy of which shall be kept on file in the Office of the City Clerk , which are not
designated filing officials under the City’s Conflict of Interest Code, are hereby designated as
subject to the financial oversight training requirements set forth in Senate Bill 827 (Government
Code Section 53238 et seq.), and that members of such boards and commissions shall complete
the mandated training in accordance with the timelines and requirements established by State law.
Presented by Approved as to form by
Kerry K. Bigelow, MMC Marco A. Verdugo
City Clerk City Attorney
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Exhibit 1
SB 827 Training Designated Boards and Commissions List
Adopted by City Council on [DATE], Resolution No. 2026-XXX
BOARDS AND COMMISSIONS DESIGNATED AS SUBJECT TO SENATE BILL 827
FINANCIAL OVERSIGHT TRAINING REQUIREMENTS
Pursuant to Senate Bill 827 (2025) (Government Code Section 53238 et seq.), the following boards
and commissions are subject to the financial oversight training requirements applicable to local
agency officials whose duties include oversight of public financial matters.
1. Boards and Commissions Designated as Filers in the City’s Conflict of Interest Code
All boards and commissions identified as designated filers in the City’s Conflict of Interest
Code.
2. Additional Boards and Commissions Designated by the City Council
The following boards and commissions are designated by the City Council as subject to
the financial oversight training requirements due to their advisory role in reviewing,
overseeing, or making recommendations related to public financial matters:
• Board of Library Trustees
• Cultural Arts Commission
• Health, Wellness & Aging Commission
• Measure A Citizens’ Oversight Committee
• Measure P Citizens’ Oversight Committee
• Parks and Recreation Commission
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v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
Approve Agreement Amendments and Grant Funds: Approve Agreement Amendments and Authority to
Apply for Grants for the Sustained Operations of the Chula Vista Community Shuttle Pilot Program
Report Number: 26-0186
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State Guidelines Section 15060(c)(3),
no environmental review is required. Notwithstanding the foregoing, the activity qualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Adopt the following resolutions:
(A) Approving a third amendment to the agreement with Community Congregational Development
Corporation (“CCDC”) to accept an additional $1,000,000 in grant funds for up to three (3) additional years
of Chula Vista Community Shuttle Pilot program (the “CV Community Shuttle”) operations and appropriating
funds for that purpose (4/5 Vote Required);
(B) Approving a fourth amendment to the agreement with Circuit Transit Inc. (“Circuit”) for the Chula Vista
Community Shuttle Pilot program to update the service hours, service area, fleet configuration, and cost
structure for operations up to June 2029, and amending the fiscal year 2025-26 budget by transferring
$440,000 in available Chula Vista Housing Authority (“Housing Authority”) funds from the Bridge Shelter
(Village at Otay) to CV Community Shuttle for year four (4) of operation (4/5 Vote Required); and
(C) Authorizing staff to submit an application for San Diego Association of Government’s (“SANDAG”) Flexible
Fleets Pilot Grant Program.
SUMMARY
Since June 13, 2022, CV Community Shuttle has provided valuable on-demand transportation services in
western Chula Vista, completing over 108,062 completed shared rides, serving more than 124,317
passengers with an average occupancy of ~1.15 passengers per ride. This item would authorize the City
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Manager to: (1) finalize negotiations and execute the amended agreement with CCDC to accept and
appropriate an additional $1,000,000 in grant funding to support up to three (3) additional years of shuttle
operations; (2) finalize negotiations and execute the amended agreement with Circuit for operations from
June 13, 2026 to November 19, 2026, with options to extend through June 12, 2029; and (3) authorize staff
to apply for the SANDAG Flexible Fleets Pilot Grant Program for the maximum amount of $500,000 to
enhance the existing CV Community Shuttle.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with CEQA, and it has been determined that the
activity is not a “Project” as defined under Section 15378 of the CEQA Guidelines because it will not result in
a physical change to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA
Guidelines, the activity is not subject to CEQA. Notwithstanding the foregoing, it has also been determined
that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the CEQA Guidelines. Thus,
no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
Chula Vista Community Shuttle Pilot Program Funding
To support City of Chula Vista’s efforts of reducing greenhouse gas emissions and meeting public
transportation needs for all ages, the City of Chula Vista (the “City”) applied for the Clean Mobility Options
(“CMO”) grant in October of 2020. In June 2021, the City was awarded $997,833 through the CMO program
to launch CV Community Shuttle to provide clean transportation to seniors in northwest Chula Vista, within
a targeted service area deemed eligible through CMO using four (4) sedans and one (1) Americans with
Disabilities Act (ADA) accessible van. In addition, the City received a grant award of $1,000,000 as
supplemental funding from CCDC to expand the original project service area to cover a larger area in western
Chula Vista and add an additional sedan to the service. On October 12, 2021, the City Council accepted both
grant awards, which fund the first three (3) years of operations.
On June 11, 2024, the City accepted $502,167 in supplemental grant funding from the CMO program to
enhance the program and add a new passenger van. On March 18, 2025, the City Council accepted additional
supplemental grant funding from CMO of $300,000 and $100,000 from CCDC to fund Year 4 of operations
and expand current services to the Southwest portion of Chula Vista extending services south along Third
Avenue to Anita Street and west to the bayfront.
The total funding required to support four (4) years of operations is $3.34 million, which includes $2.9
million in grant funding received to date and $440,000 in Housing Authority funds to be transferred from the
Bridge Shelter (Village at Otay) to CV Community Shuttle through this item. The City has committed and/or
anticipates adequate funding to cover the Village at Otay through other funding sources such as the
Permanent Local Housing Allocation Program, Prohousing Incentive Program, and Housing Successor Funds
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to ensure continued operations of the facility for the next four (4) years. The total funding by year and by
funding source to support four (4) years of CV Community Shuttle operations is summarized in Table 1
below.
Table 1: CV Community Shuttle Funding Years: Pre-Launch Year 0 and Operational Years 1-4
0 – Pre-Launch Year CMO $107,998
1 – June 12, 2022, through June 13, 2023 CMO
CCDC
$634,365
$155,232
2 - June 12, 2023, through June 13, 2024 CMO
CCDC
$755,470
$173,963
3 - June 12, 2024, through June 13, 2025 CCDC $670,805
4 - June 12, 2025, through June 13, 2026 CMO
CCDC
City
$100,000
$300,000
$440,000
Non-Operational – Administrative Cost CMO $2,167
Operations Year 1 through Year 4
City first entered into its operating agreement with Circuit for CV Community Shuttle on October 12, 2021,
pursuant to Resolution No. 2021-188. CV Community Shuttle officially launched in June 2022 and currently
operates between the hours of 7 a.m. and 7 p.m. Monday through Friday as an on-demand service using a
fleet of dedicated all-electric vehicles (EV). CV Community Shuttle is currently serviced by a total of five (5)
sedans and two (2) passenger vans, one (1) of which is a Wheelchair Accessible Vehicle (“WAV”). Riders can
request rides within a geo-fenced coverage zone through a mobile ride request app available on iOS and
Android, by calling in, or by waving down a vehicle. The initial goal of CV Community Shuttle was to improve
mobility options for the senior community, provide connections to public transit and key community
services, improve social determinants of health related to transportation accessibility, reduce greenhouse
gas emissions, improve air quality, and reduce congestion. Caregivers, senior living community staff, and
others can also make requests on behalf of riders. The service includes one WAV van for riders requiring
ADA assistance, which can be indicated in the ride request app or when requesting by phone.
Upon initial application for funding, Circuit had identified a plan for offsetting operational costs and thereby
reducing the long-term grant funds needed through a revenue-sharing model with the City for: 1) fare
collection; and 2) advertising revenue. In Year 3 of operations (beginning August 2024), CV Community
Shuttle expanded to include riders under the age of fifty-five (55) at a fare of $2.00 per ride. While the service
remains free for riders ages fifty-five (55) and up, the revenue-sharing model remains in place with the
current operator, whereby a portion of fare and advertising revenues are applied to Year 4 of the program
costs. As of March 2026, fare collection has been limited, totaling approximately $10,590.27, and no
advertising revenue has been generated.
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In Year 4 of operations (beginning July 2025), CV Community Shuttle’s service area expanded to the
southwest region of Chula Vista that connected all three (3) trolley stops, including the E Street Transit, H
Street Transit, and Palomar Transit centers. This expansion provided additional connectivity to regional
amenities, retail, and services along both Third Avenue and Broadway, including the South Branch Library
and major shopping centers.
Proposed Year Five Operations
Current Challenges
Several challenges have occurred over the years, with the largest being the ability to sustain operations
without City funding and maintaining a high quality of service that has come to be expected by the community
which CV Community Shuttle is serving, as detailed below.
Funding - Most grant programs will only fund enhanced or expanded transportation programs. As
indicated above, Circuit presented a variety of ways that offsetting funds could be generated in order
to assist in the operational expenses. However, this has not occurred and only $10,590.27 in fares
has been collected to date, of which City under the current agreement with Circuit receives sixty
percent (60%), or $6,354.16 in funds towards offsetting operations, while Circuit retains the other
forty percent (40%) as profit. City was required to operate under the CMO Voucher Agreement for a
minimum of four (4) years or was at risk of funding being recaptured. To support the fourth year,
City used a combination of CMO, which required an expansion of the service area, and CCDC funds,
which required the service remain free to seniors, and for the first time City had to dedicate $440,000
Housing Authority funds.
Quality of Service - The average passenger wait-time has increased over the course of CV
Community Shuttle, with the July expansion of the service area being the clearest operational
inflection point. Prior to the July 2025 expansion, the average wait-time had been increasing
gradually due to steadily rising demand, moving from approximately eight (8) minutes at launch to a
relatively stable ten (10) to eleven (11) minute range through mid-2025. Following the expansion,
however, the existing fleet began serving a substantially larger geographic area, which accelerated
wait-time growth and reduced overall service responsiveness from eleven (11) minutes to an
average of sixteen (16) minutes.
It should also be noted that administration of CV Community Shuttle is being provided by staff in the Housing
and Homeless Services Department and reimbursed through the City’s General Fund as an in-kind match to
the grant funds. Administration of the program includes grant management, client inquiries, and financial
management. Since July 2025, the primary staffer has worked over 370 hours on the project, equating to
approximately $46,000 or forty two percent (42%) of their time.
CCDC Grant Funds (Year 5, Year 6, and Year 7)
Since the inception of CV Community Shuttle, CCDC has been a key partner in supporting the program,
consistent with its mission to serve older adults in Chula Vista. On April 23, 2026, the CCDC Board approved
an additional $1,000,000 in grant funding to support Year 5, Year 6, and Year 7 of shuttle operations. This
item appropriates the funds and authorizes the City Manager to finalize negotiations and execute a third
amendment to the agreement with CCDC, as presented in Attachment 1, to accept the funding and
incorporate minor administrative updates to the agreement.
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Operational Updates
To address service concerns and with reduced overall funding to continue operations, the proposed Year 5
(2026/2027) operational plan updates the service hours, service area, fleet configuration, and cost structure
to support long-term sustainability of CV Community Shuttle. Under the proposed plan, CV Community
Shuttle will operate between the hours of 8 a.m. and 5 p.m. on Monday through Friday as an on-demand
service using a fleet of four (4) dedicated all-electric sedans and one (1) WAV van.
The proposed service area modifications are based on cumulative ridership data, operational performance
trends, including wait times and fleet utilization, service demand patterns, and strategic planning efforts to
improve overall service reliability, operational efficiency, and long-term fiscal sustainability. The proposed
adjustments to the current service area boundaries should improve operational efficiency and service
reliability. The modifications include refining portions of the southwest service zone by redefining the
southern boundary from Anita Street to Palomar Street and reducing western and eastern coverage areas
that have experienced lower ridership demand and present operational inefficiencies. The proposal
maintains connectivity to key transit corridors, community destinations, identified ridership hotspots, major
commercial centers, and transit centers, as outlined in Figure 1.
Figure 1 - Updated Service Area for Year Five Operations (beginning June 13, 2026)
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In addition, in the first few months of the updated agreement, City and Circuit will explore the
implementation of an up to $2.00 senior fare for riders ages fifty-five (55) and up and an increase for those
under the age of fifty-five (55), as part of the broader strategy to support the long-term sustainability of the
program while maintaining affordable and accessible transportation options for the older adults in Chula
Vista. The proposed nominal fare is intended to support operational sustainability while also helping
moderate marginal ridership demand. Operational experience with similar micro transit programs has
shown that modest fares can reduce cancellations and no-shows by encouraging more intentional trip
booking behavior, improve routing efficiency by decreasing unproductive vehicle time, and discourage
discretionary or low-value trips that can disproportionately consume limited system capacity. The proposed
senior fare is expected to preserve affordability and accessibility for older adults while improving
operational sustainability and the overall rider experience. Should all parties agree to the fare
implementation, the operator will lead community outreach and rider education prior to implementation to
ensure the riders and stakeholders are informed of the program changes, with the support and coordination
provided by staff. Attachment 2 provides the fourth amendment with Circuit.
New Grant Opportunity
While CV Community Shuttle was initially launched as a pilot program, the City recognizes the value it has
provided and continues to pursue long-term funding strategies through grants and community partnerships
to support program sustainability. This includes an anticipated June 2026 application to the Flexible Fleets
Pilot Grant Program administered by SANDAG. If awarded, the grant would provide up to $500,000 in
operating support to enhance CV Community Shuttle, with a performance period through December 2029.
Staff anticipate a response in late 2026. In parallel, staff have expanded marketing efforts and strengthened
partnerships over the past six (6) months to support ridership growth and long-term viability. Staff are
seeking City Council approval to apply for the Flexible Fleets Pilot Grant Program in this item.
Conclusion
While CV Community Shuttle began as a pilot program, the City recognizes the valuable service it is providing
to the senior community to fill a gap in transportation services and provide a reliable mobility option for
western Chula Vista. While the proposed action would alter the operating times to Monday through Friday
from 8 a.m. to 5 p.m. and adjust the service area as depicted in Figure 1, staff will continue to pursue
opportunities to enhance CV Community Shuttle.
DECISION-MAKER CONFLICT
Staff have reviewed the decshision contemplated by this action and have determined that it is not site-
specific and consequently, the real property holdings of the City Council members do not create a
disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't
Code § 87100, et seq.). Staff are not independently aware and have not been informed by any City Council
member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
As discussed earlier in the staff report, the total funding required to support four (4) years of operations is
$3.34 million, which includes $2.9 million in grant funding received to date and $440,000 in Housing
Authority funds.
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Staff recommend transferring $440,000 in available Housing Authority funds from the Bridge Shelter (Village
at Otay) to CV Community Shuttle. The City has committed and/or anticipates adequate funding to cover the
Village at Otay through other funding sources such as the Permanent Local Housing Allocation Program,
Prohousing Incentive Program, and Housing Successor Funds to ensure continued operations of the facility
for the next four (4) years.
ONGOING FISCAL IMPACT
The proposed third amendment with CCDC will accept an additional $1,000,000 for three (3) additional years
of shuttle operations. The agreement with CCDC is contingent upon the City providing a local 1-for-1 match
per fiscal year over the course of three (3) years, or $1,000,000 in total, in fiscal years 2026-27, 2027-28, and
2028-29.
The City’s fiscal year 2026-27 local match in the amount of $350,000 was included in the budget that was
adopted on May 19, 2026. Funds for future years have not yet been appropriated and would be subject to
City Council approval and availability of funds as part of the annual budget development process. If the City
does not contribute the required amount, the grant funds from CCDC will be cancelled.
The proposed fourth amendment to the agreement with Circuit would commit the City to continue to use
Circuit for Year 5 operations as the CV Community Shuttle operator through the end of the CMO Voucher
period on November 19, 2026. For the remainder of Year 5 operations (November 20, 2026, through June
12, 2027), City will have the option to renew with Circuit to continue shuttle operations with a not-to-exceed
amount of $680,000. Continued operations for Year 6 and Year 7 with Circuit beyond this date are subject to
City Council appropriation of funds as part of the annual budget development process.
Staff will continue to pursue other potential funding opportunities from the State and other agencies to help
with future funding of CV Community Shuttle; however, should funding not be attained or other financial
sustainability be determined, staff will determine the viability of continuing CV Community Shuttle.
ATTACHMENTS
1. CCDC Third Amendment No. 2026-125 to Agreement No. 2021-1012
2. Circuit Fourth Amendment No. 2026-126 to Agreement No. 2021-96
Staff Contact: Stacey Kurz, Director of Housing & Homeless Services
Chris Stanley, Senior Planner
Emily Tran, Management Analyst II
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Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A THIRD AMENDMENT TO A
GRANT AGREEMENT WITH COMMUNITY
CONGREGATIONAL DEVELOPMENT CORPORATION,
ACCEPT AND APPROPRIATE ADDITIONAL GRANT FUNDS
FOR THE CHULA VISTA COMMUNITY SHUTTLE PILOT
PROGRAM, AND AUTHORIZING THE CITY MANAGER TO
FINALIZE THE NEGOTIATION AND EXECUTE THE
AGREEMENT AND RELATE DOCUMENTS
WHEREAS, the City of Chula Vista (“City”) funds the Chula Vista Community Shuttle
Pilot program (“CV Community Shuttle”) provides valuable on-demand shuttle services for
northwest Chula Vista; and
WHEREAS, on November 11, 2021, City and Community Congregational Development
Corp. (“CCDC”) entered into a Grant Agreement for Community Congregational Development
Corp. Grant to the City of Chula Vista, No. 2021-101 in the amount not to exceed $1,000,000
(“Original Agreement”); and
WHEREAS, on October 13, 2022, City and CCDC executed a First Amendment as
Agreement No. 2022-165 to adjust the annual dollar amounts payable from CCDC to City; and
WHEREAS, on September 30, 2024, CCDC Board of Director’s approved additional
funding in an amount not to exceed $100,000 to the City to support City efforts to identify and
pursue funding opportunities for future years of operation; and
WHEREAS, on March 19, 2025, City and CCDC executed a Second Amendment as
Agreement No. 2024-208 to adjust annual dollar amounts payable from CCDC to City, actual
service period, and approve additional funding; and
WHEREAS, on April 23, 2026, CCDC Board of Directors approved additional funding in
an amount not to exceed $1,000,000 to the City for three (3) additional years of shuttle operations
for Fiscal Years 2026/27, 2027/28, and 2028/29; and
WHEREAS, City and CCDC desire to amend the Original Agreement to reflect the
additional grant funding of $1,000,000 approved on April 23, 2026, to support the continued
operation of CV Community Shuttle for Year 5 through Year 7.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the Third Amendment with CCDC to accept an additional $1,000,000 in grant
funds for CV Community Shuttle, 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
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Resolution No.
Page 2
the City Clerk, and authorizes and directs the City Manager to finalize the negotiation and execute
same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
hereby amends the fiscal year 2026-27 budget by appropriating $1,000,000 to the Supplies &
Services category in the Grant Fund for three (3) additional years of shuttle operations.
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney
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Form Rev 2/18/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A FOURTH AMENDMENT
BETWEEN THE CITY AND CIRCUIT TRANSIT, INC. FOR
THE CHULA VISTA COMMUNITY SHUTTLE PILOT
PROGRAM AND AUTHORIZING THE CITY MANAGER TO
FINALIZE THE NEGOTIATION AND EXECUTE THE
AGREEMENT
WHEREAS, the City of Chula Vista (“City”) funds the Chula Vista Community Shuttle
program (“CV Community Shuttle”) to provide valuable on-demand shuttle services for Chula
Vista residents in the western portion of Chula Vista; and
WHEREAS, on October 12, 2021, under Resolution No. 2021-188, City accepted grant
funds in the amount of $997,833 through the Clean Mobility Options (“CMO”) and $1,000,000
from Community Congregational Development Corp. (“CCDC”) to fund the CV Community
Shuttle, and on June 11, 2024, under Resolution No. 2024-128, an additional $502,167 in CMO
supplemental funds to total $2,500,000 toward the first three (3) years of operations in northwest
Chula Vista; and
WHEREAS, an additional $400,000 was approved by City Council on March 18, 2025,
under Resolution No. 2025-038, including $300,000 in CMO and $100,000 in CCDC funds; and
WHEREAS, an additional $440,000 in Chula Vista Housing Authority funds is required to
support Year 4 of operations which also expanded services to the southwest portion of the City,
for a total of $840,000 in Year 4 of operations; and
WHEREAS, City desires to amend the fiscal year 2025-26 budget by transferring $440,000
in available Chula Vista Housing Authority funds from the Bridge Shelter (Village at Otay) to the
CV Community Shuttle; and
WHEREAS, City entered into a Contractor/Service Provider Services Agreement with
Circuit Transit Inc. (“Circuit”) to Implement and Provide Services for the Community Shuttle
Program (“Original Agreement”) on March 15, 2022, as Agreement No. 2021-96; and
WHEREAS, City and Circuit executed a First Amendment to the Original Agreement on
June 11, 2024, as Resolution No. 2024-128, a Second Amendment on June 12, 2025, as Agreement
No. 2025-131, and a Third Amendment on July 15, 2025, as Agreement No. 2025-103; and
WHEREAS, City and Circuit now desire to amend the Original Agreement to revise the
service area, service hours, and other operational updates for Year 5 of operations.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves a Fourth Amendment to the Original Agreement between City and Circuit in the
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Resolution No.
Page 2
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 finalize the negotiation and execute same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
hereby amends the fiscal year 2025-26 budget by transferring $440,000 in available Chula Vista
Housing Authority funds from the Bridge Shelter (Village at Otay) to CV Community Shuttle.
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing & Homeless Services City Attorney
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Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE FILING OF AN
APPLICATION FOR GRANT FUNDS FROM THE SAN DIEGO
ASSOCIATION OF GOVERNMENTS AND ACCEPTING THE
TERMS OF THE GRANT AGREEMENT
WHEREAS, the San Diego Association of Governments (“SANDAG”) has created a new
Flexible Fleet Pilot Grant Program (“FFGP”); and
WHEREAS, up to $4.5 million of Surface Transportation Block Grant (“STBG”) funding
is available for FFGP projects; and
WHEREAS, federal, state, local, and tribal governments, transit districts, and military
institutions are eligible applicants; and
WHEREAS, the City of Chula Vista (“City”) wishes to apply for FFGP grant funding from
SANDAG by submitting a grant application to SANDAG for such grant funding.
NOW, THEREFORE, BE IT RESOLVED by the City Council that the City is authorized
to submit a grant application to SANDAG for FFGP funding; and
BE IT FURTHER RESOLVED that, if a grant award is made by SANDAG to fund the
application, City commits to providing the matching fund amounts listed in the grant application;
and
BE IT FURTHER RESOLVED that, if a grant award is made by SANDAG, City
authorizes staff to accept the grant funds, execute the grant agreement with no exceptions in
substantially the same form as provided with the FFGP Call for Projects, and complete the project
as described in the application.
Presented by Approved as to Form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
THIRD AMENDMENT
to Grant Agreement between the
City of Chula Vista
and
Community Congregational Development Corporation for Chula Vista Community Shuttle
Program
This THIRD AMENDMENT (“Amendment”) is entered into effective as of June 13, 2026
(“Effective Date”) by and between the City of Chula Vista (“City”) and Community
Congregational Development Corporation (“CCDC”) (collectively, the “Parties” and each
individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, on November 11, 2021, the Parties entered into a Grant Agreement for the
Attachment 1 - CCDC Third Amendment No. 2026-125 to Agreement No. 2021-1012 .docx
(“Original Agreement”) to provide funding for the Chula Vista Community Shuttle Program
(“Program”); and
WHEREAS, on October 13, 2022, the Parties executed a first amendment of the Original
Agreement as Amendment to Agreement No. 2022-165 to adjust the annual dollar amounts
payable from CCDC to City; and
WHEREAS, on March 19, 2025, the Parties executed a second amendment of the Original
Agreement as Amendment to Agreement No. 2024-208 to adjust annual dollar amounts payable
from CCDC to City, actual service period, and approve additional funding; and
WHEREAS, the CCDC Board of Directors has approved additional funding in an amount
not to exceed $1,000,000 to the City for three (3) additional years of shuttle operations for the
Program (“Additional Grant Funds”); and
WHEREAS, services for the Program have been provided under an agreement between
City and Circuit Transit Inc. (“Circuit”) and the scope of work for those services are to be modified
in a new or amended agreement between City and Circuit or another City contractor (“Operator”);
and
WHEREAS, in consideration for CCDC providing the Additional Grant Funds, City will
diligently pursue ways to facilitate the long-term sustainability and continued operation of the
Program; and
WHEREAS, the Parties desire to amend the Original Agreement to reflect the Additional
Grant Funding of $1,000,000, to support the continued operation of the Chula Vista Community
Shuttle Program (“Program”) for Years 5 through 7 and update the terms as more specifically set
forth below.
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
NOW, THEREFORE, in consideration of the above recitals and the mutual obligations of
the Parties set forth herein, City and CCDC agree as follows:
1. Article II, GENERAL TERMS, Section 1 is replaced in its entirety as follows:
“The purpose of the Original Agreement and amendments thereto is to fund the
Program. Exhibits A through D and amendments thereto are hereby incorporated into
the Grant Agreement.”
2. Article II, GENERAL TERMS, Section 2 is deleted in its entirety and replaced with
the following:
“The Grant Agreement became effective on November 10, 2021, when it was fully
executed by the Parties (“Grant Start Date”) and the City shall not request Grant
Funds for Program costs “incurred prior to the Grant Start Date.” The Third
Amendment shall become effective when it is fully executed by the Parties
(“Additional Grant Start Date”) and the City shall not request a payment of the
Additional Grant Funds for the Program costs incurred prior to the Additional Grant
Start Date. The term of the Grant Agreement is hereby extended to June 13, 2029
(“Completion Date”).”
3. Article III, PROJECT EXECUTION AND SCOPE, Section 1 is deleted in its entirety
and replaced with the following:
“CCDC hereby grants to City a sum of money (“Grant Funds”) in an amount not-to-
exceed $2,100,000.00, in consideration of and on condition that the sum be expended
in carrying out the purposes as set forth in the description of Program in this Grant
Agreement and its attachments and under the terms and conditions set forth in this
Grant Agreement.”
4. Article III, PROJECT EXECUTION AND SCOPE is amended to add the following as
Section 5:
“5. The City shall provide a minimum of a 1-for-1 match in funds for the term of this
Agreement (the “City Match”), subject to annual City Council appropriation and the
availability of funds. The Parties acknowledge that the CCDC funding is contingent
upon the City providing the City Match. In the event City successfully obtains grant
funding from a public or private sector source for the Program after the Additional
Grant Start Date, the City shall not supplant the City Match with those funds without
consultation with CCDC. City shall make reasonable efforts to couple any such swap
of funds with an enhancement and/or expansion of services, which shall be taken into
consideration by CCDC as part of the consultation process.”
5. Article V, FINANCIAL RECORDS AND REPORTING, Section 3 is deleted in its
entirety and replaced with the following:
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
“Every six (6) months beginning on or before December 1, 2026 until the Completion
Date, and again within thirty (30) days of the Completion Date, the City will submit to
CCDC an expenditure report evidencing the expenditure of Grant Funds and/or
Additional Grant Funds, City Match funds, and any other Program funding used for the
Program (“Expenditure Report”).”
6. Article V, FINANCIAL RECORDS AND REPORTING, is amended to add the
following:
“5. City shall provide a report to CCDC by March 31st of each year, beginning March
31, 2027, which identifies all funding used and sought for the Program by the City in
the previous twelve (12) months, funding successfully obtained and its planned use
for the Program, including fares or sponsorships, and the City’s plans for seeking
funding for the future (“Funding Report”). The Funding Report shall include
documentation of efforts made by the Operator and the results of those efforts.”
7. Article VI, PAYMENT, is deleted in its entirety and replaced with the following:
“VI. PAYMENT
1. At the completion of Year 1 and Year 2 of operations, CCDC paid City
$312,912.00.
2. During Year 3 of operations, CCDC shall pay the City $687,088.00 upon receipt of
a request for Grant Funds and supporting documents. CCDC will make payment to
City for approved Grant Funds by no later than thirty (30) days after receipt of
City’s request, unless supporting Grant documents indicate that the Program may
not be in conformity with the purpose of the Grant. Funds should be requested as
follows:
a. On or around March 6, 2025, in the amount of $362,941.20; and
b. On or around April 13, 2025, in the amount of $324,146.80.
3. During Year 4 of operations, CCDC shall pay City $100,000.00 at the
Commencement of Quarter 1 (July 1, 2025 – September 30, 2025).
4. During Year 5, Year 6, and Year 7 of operations, CCDC shall pay the City upon
receipt of a request for Grant Funds and supporting documents. CCDC will make
payment to City for approved Additional Grant Funds by no later than thirty (30)
days after receipt of City’s request, unless one or more reports have not been
provided by the City, and/or evidence indicates that the City or its Operator are not
meeting the conditions for release of Grant Agreement or amendments thereto.
Funds should be requested on or around July 1 and January 1 of each year in the
amount of $166,666.66 for a total not to exceed amount of $333,333.32 per fiscal
year, with a final request on or around January 1, 2029 of $166,666.70.
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
5. Should the entire amount of CCDC funds paid by CCDC for the Program’s
operational services not be fully expended by the City for the Operator’s services
performed prior to the Completion Date, the remainder of the CCDC funds may be
carried forward to Year 8 for the Program with CCDC approval or returned to
CCDC at CCDC’s discretion.
6. CCDC shall not unreasonably withhold funds, however, should the City not provide
the reporting required herein or not comply with the conditions in the exhibits
thereto, CCDC may withhold all or a portion of the next payment requested by the
City until such time as the City provides sufficient documentation of performance.
Should funds be withheld pursuant to this Section, the Parties acknowledge that
Program operations, service levels, and related performance outcomes will be
impacted commensurate with the level of funding withheld.”
8. Exhibit B (entitled Additional Grant Requirements) to the Grant Agreement is hereby
deleted in its entirety and replaced with a revised Exhibit B attached hereto and
incorporated herein by this reference.
9. Exhibit D (entitled Geographic Service Area Map) to the Grant Agreement is hereby
deleted in its entirety and replaced with a revised Exhibit D attached hereto and
incorporated herein by this reference.
10. Except as expressly provided herein, all other terms and conditions of the Original
Agreement shall remain in full force and effect.
11. Each party represents that it has full right, power and authority to execute this THIRD
Amendment and to perform its obligations hereunder, without the need for any further
action under its governing instruments, and the parties executing this Amendment on
the behalf of such party are duly authorized agents with authority to do so.
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June 2, 2026 Post City Council/Housing Authority Agenda
City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
SIGNATURE PAGE TO THIRD AMENDMENT
TO ATTACHMENT 1 - CCDC THIRD AMENDMENT NO. 2026-125 TO AGREEMENT
NO. 2021-1012 .DOCX
TO THE CITY OF CHULA VISTA, NO. 2021-101
APPROVED AS TO FORM
BY:_______________________________
MARCO A. VERDUGO
CITY ATTORNEY
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June 2, 2026 Post City Council/Housing Authority Agenda
City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
EXHIBIT B
ADDITIONAL GRANT REQUIREMENTS
The City shall comply with the following additional terms and conditions to maintain eligibility to
request and receive Grant Funds or Additional Grant Funds payments from CCDC, unless
otherwise agreed to by the Parties in writing:
1. At a minimum, the Program is expected to provide the shuttle services to seniors at a cost
or at a fare not exceeding $2.00 per ride during the duration that CCDC is funding the
Program. Seniors shall be defined as those who are fifty-five (55) years of age or older.
2. At a minimum, the Program is expected to prioritize door-to-door transportation services
for seniors, except where operational adjustments, or alternative service models may be
identified in Revised Exhibit D, or otherwise mutually agreed upon by the parties in
writing.
3. At minimum, the Program services are anticipated to operate from Monday through Friday,
8 AM to 5 PM, within the geographic area reflected in the Revised Exhibit D, recognizing
that future operational adjustments may be necessary to improve service performance,
respond to funding availability, pursue grant opportunities or address community needs.
Revisions to Exhibit D shall be considered a material change requiring a written
amendment.
4. The City agrees to keep CCDC informed of operational changes related to the Program,
including modifications to the name of the service, service areas, fare structures, service
hours, or operating models that may affect the Program objectives supported by CCDC
funding or CCDC’s objectives in providing that funding.
5. Unless a change is needed as a matter of unpredictable urgency, City will provide, CCDC
reasonable advance notice and supporting documentation at least thirty (30) calendar days
prior to any operational changes.
a. Should CCDC express concerns regarding a proposed operational change, CCDC
may provide the City with written notice outlining the concerns and reasons
therefore within thirty (30) calendar days, after which the parties will meet in good
faith to reach a resolution.
6. The City intends to continue supporting reasonable reporting and information-sharing
efforts related to the Program, including the following:
a. Submission of Expenditure Reports and Funding Reports consistent with the
Original Agreement and this Third Amendment.
b. Providing available ridership data, operational information, as appropriate to show
compliance with the grant’s terms, and Program operation costs by July 30 of each
year. Such reports shall include those that City requires of Operator and described
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
as Dashboard Access and Reporting Requirements in Amendment 4 to City's
contract with Circuit.
7. The City shall use reasonable, good-faith efforts to supplement funding for the Program
from federal, state, regional, and local sources, including both from the public and private
sector opportunities. Such efforts may include, but are not limited to, regional funding
programs, (e.g. San Diego Association of Government’s Flexible Fleets Pilot Grant
Program) and potential partnerships with private or institutional entities.
8. The City may coordinate with the Operator to support the identification and pursue
additional funding sources and partnerships to promote the continuity and sustainability of
the Program. Where appropriate, the City may also assist the Operator with the
relationships and position to facilitate introductions and collaboration opportunities.
9. In the event the City issues a solicitation to seek new proposals for an Operator to carry out
services on the Program, the City shall provide notice to CCDC. If requested by CCDC,
the City may, subject to reasonable availability and, in its reasonable discretion, allow a
CCDC representative to participate in the proposal evaluation panel.
10. At a minimum, the City is expected to incorporate applicable Program requirements into
its agreement with the Operator, as appropriate. If such requirements are not met, the City
may take reasonable and appropriate action consistent with its agreement with the
Operator, which may include adjusting or withholding payment.
a. Marketing and Outreach: The Operator shall be responsible for leading the
marketing and outreach efforts related to the Program, including the development
and distribution of public-facing materials regarding the service and any significant
service changes (such as routes or fares), as appropriate. The Operator is expected
to lead outreach efforts to inform potential riders about how to access shuttle
services, including how to contact the call center and request rides. Such outreach
may be conducted in coordination with the City and may include materials in
English and Spanish, as appropriate. Such materials may be provided in English
and Spanish, as feasible. The City will coordinate with the Operator and CCDC on
outreach opportunities and will support dissemination through City communication
channels, including the City’s website and social media platforms. Outreach efforts
may include providing information on how to access the service, including call
center contact information.
b. Average Wait Time: The Operator shall track the amount of time between the
moment a rider submits a trip request and the moment the driver arrives at the
designated pick-up location and marks the rider as picked up. Wait time shall not
include travel time between pick-up and drop-off, delays attributable to rider
readiness, rider-initiated schedule changes, or cancellations. The Operator shall use
commercially reasonable efforts to maintain an average rider wait time of sixteen
(16) minutes or less, measured on a monthly basis; provided, however, that delays
resulting from factors beyond the reasonable control of the Operator, pursuant to
Section 10g below, may be excluded where the Operator documents the cause of
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
such delay and the City reasonably agrees such circumstances were outside the
Operator’s control.
c. Trip Denial Rate: The Operator shall track the number of trips, denials, and
cancellations including reasons for such denials and/or cancellations. The City and
the Operator may monitor trip denials rates and evaluate trends over time to inform
the service planning, service conditions, and service adjustments. For purposes of
performance monitoring, the trip denial rate shall be calculated as the number of
denied trips divided by the total number of requested trips. Combined rider
cancellation rates and Operator trip denial and cancellation rates shall not exceed
thirty percent (30%) on a monthly basis; provided, however, that denials or
cancellations resulting from factors beyond the reasonable control of the Operator,
pursuant to Section 10g below, may be excluded where the Operator documents the
cause of such denial or cancellation and the City reasonably agrees such
circumstances were outside the Operator’s control.
d. Call Center Language Assistance: The Operator shall comply with applicable
federal and state requirements, including Title VI of the Civil Rights Act and
Government Code Section 11135, to provide language assistance to individuals
with limited English proficiency, as required.
e. Driver Rating and Survey Outreach: The Operator shall collect customer feedback
related to driver service and rider experience to support continuous service
improvement. Operator shall make driver rating satisfaction surveys available to all
riders and shall use commercially reasonable efforts to encourage participation in
such survey. Operator shall maintain an average score of at least three (3)
(“satisfactory”) on a scale of one (1) to five (5).
f. Call Center and Customer Service Survey: The Operator shall collect customer
feedback related to call center service to support continuous service improvement.
Operator shall make call center rating survey opportunities available to riders who
utilize call center services, including through an optional post-call survey process,
and shall use commercially reasonable efforts to encourage participation in such
surveys. Operator shall maintain an average call center service rating of at least
three (3) (“satisfactory”) on a scale of one (1) to five (5).
g. Operational Performance Qualification: The Operator shall monitor operational
performance and notify the City if factors within or outside of the Operator’s
reasonable control materially impact the Operator’s ability to achieve the
performance metrics set forth herein.
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City of Chula Vista Amendment to Agreement No.: 2026-125
CCDC Name: Community Congregational Development Corporation
Rev. 10/08/2025
EXHIBIT D
GEOGRAPHIC SERVICE AREA MAP
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
FOURTH AMENDMENT
to Agreement between the
City of Chula Vista
and
CIRCUIT TRANSIT, INC.
For CHULA VISTA COMMUNITY SHUTTLE PROGRAM
This FOURTH AMENDMENT (“Amendment”) is entered into effective as of June 13,
2026 (“Effective Date”) by and between the City of Chula Vista (“City”) and CIRCUIT
TRANSIT, INC. (“Consultant”) (collectively the “Parties” and individually a “Party”) with
reference to the following facts:
RECITALS
WHEREAS, on March 15, 2022, the Parties entered into a City of Chula Vista
Contractor/Service Provider Services Agreement with Circuit Transit Inc., No. 2021-96
(“Original Agreement”); and
WHEREAS, on June 11, 2024, the Parties executed a first amendment of the
Original Agreement to amend the scope of work and payment terms; and
WHEREAS, on June 12, 2025, the Parties executed a second amendment of the
Original Agreement to increase the not-to-exceed amount to reflect one month of additional
services and/or costs for continued operations of the shuttle; and
WHEREAS, on July 15, 2025, the Parties executed a third amendment of the
Original Agreement to amend the required services, term, and compensation from June 13,
2025, through June 12, 2026; and
WHEREAS, City and Consultant desire to amend the Agreement to update required
services, term, and compensation for services running from June 13, 2026, through June
12, 2029, and in compliance with Clean Mobility Options Project Voucher grant
obligations through November 19, 2026, as more specifically set forth below; and
WHEREAS, the City desires to refine the scope of shuttle services, adjust service
levels including service area and fleet size, contract terms, and compensation to support
Years 5 through 7 of shuttle operations, with the option to renew, subject to City Council
appropriation and the availability of funding.
NOW, THEREFORE, in consideration of the above recitals and the mutual
obligations of the parties set forth herein, City and Consultant agree as follows:
1. Exhibit A to the Agreement is hereby deleted in its entirety and replaced with
Revised Exhibit A, which is attached hereto and incorporated herein by this
reference.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
2. Except as expressly provided herein, all other terms and conditions of the
Original Agreement shall remain in full force and effect.
3. Each party represents that it has full right, power and authority to execute this
FOURTH Amendment and to perform its obligations hereunder, without the
need for any further action under its governing instruments, and the parties
executing this Amendment on behalf of such party are duly authorized agents
with authority to do so.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
SIGNATURE PAGE TO FOURTH AMENDMENT
TO
CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES
AGREEMENT WITH CIRCUIT TRANSIT INC. TO IMPLEMENT AND
PROVIDE SERVICES FOR THE COMMUNITY SHUTTLE PROGRAM
CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
JAMES MIRRAS
CO-FOUNDER/COO
APPROVED AS TO FORM
BY:____________________________
MARCO A. VERDUGO
CITY ATTORNEY
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June 2, 2026 Post City Council/Housing Authority Agenda
City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
REVISED EXHIBIT A
AMENDED AND RESTATED
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Stacey Kurz
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5047
skurz@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Contractor/Service Provider Contract Administration:
CIRCUIT TRANSIT INC.
743 Ninth Avenue, San Diego, CA 92101
562-252-6680
daniel@ridecircuit.com
For Legal Notice Copy to:
CIRCUIT TRANSIT INC. / James Mirras
501 East Las Olas Boulevard, Fort Lauderdale, FL 33301
james@ridecircuit.com
legal@ridecircuit.com
2. Required Services
A. General Description:
Contractor/Service Provider will provide shuttle transportation services in the western
part of the Chula Vista community in accordance with the terms and conditions of this
Agreement and as further depicted in Revised Exhibit D.
B. Detailed Description:
Based on the findings of the 2020 SANDAG Mobility HUB needs assessment survey as
referenced for the Chula Vista Community Shuttle (the “Shuttle Program”), City desires
to provide electric on-demand shuttle services catered to the needs of the community
with a focus on the local senior community in the Northwest and Southwest part of
Chula Vista as shown on Exhibit D. The Shuttle Program has been and will be designed
with the community’s input and participation to provide safe, convenient, affordable,
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
and accessible first/last mile connections. The goals of the Shuttle Program will be to
improve mobility options with an emphasis on the senior communities, provide
connections to public transit and key community services, improve social determinants
of health related to transportation accessibility, reduce greenhouse gas emissions,
improve air quality, and reduce congestion.
Phasing and Deliverables. Contractor/Service Provider will operate and implement the
Shuttle Program in accordance with all terms and conditions of this Agreement and
provide the following deliverables within the timelines provided below:
● Fares.
o Seniors. Contractor/Service Provider will operate the Shuttle Program as a
fare-free transportation service for seniors fifty-five (55) years of age and
older. Notwithstanding, the City reserves the discretion, in coordination
with the Contractor, to implement a fare up to $2.00 for senior riders as part
of program modifications to support long-term sustainability, affordability,
and service quality.
▪ In the event the City elects to implement a fare, the
Contractor/Service Provider shall be responsible for leading
community outreach and rider education efforts prior to
implementation. Such efforts shall ensure that riders and relevant
stakeholders are informed of the fare structure and any related
program changes. The City shall provide support and coordination
for such outreach and education activities, as reasonably requested.
o General Public. Contractor/Service Provider will maintain the Shuttle
Program available to the general public. The Shuttle Program will charge
general public users a fare of $2.00 per passenger per ride (each a “Fare”;
collectively the “Fares”). Contractor/Service Provider will implement and
maintain a contactless fare program, one that will accept payment via credit
card, debit card, or prepaid card. Contractor/Service Provider will be
responsible for collecting any and all Fares and to account for any and all
Fares collected. Contractor/Service Provider will provide City with a
monthly accounting of any and all Fares collected from the Shuttle Program
within thirty (30) days of the end of the month in which the Fares were
collected. The City may audit or require an independent audit of the
accounting submitted to verify the accuracy of the accounting and the
appropriateness of the submittals. The responsibility of payment of the
independent audit will be negotiated in good faith by the Parties.
Contractor/Service Provider will apply sixty percent (60%) of the total
revenue generated from any and all Fares towards future Required Services
in the form of a credit to the City. This credit shall be applied in to offset
costs of the Shuttle Program and provide for continuing support for the
Shuttle Program, as follows:
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
o Contractor/Service Provider will apply sixty percent (60%) of the total
revenue generated from any and all Fares on a monthly basis:
▫ Sixty percent (60%) of all Fares collected shall be issued to
the City in the form of a credit memo. Unless otherwise
directed by the City, such credit memo shall be applied to
the billing statement for the month immediately following
the month in which the Fares are accrued. The City may, at
its discretion, apply the credit memo to a different billing
period.
● Fare Adjustments. Notwithstanding the foregoing, the City reserves the right, in
coordination with and subject to agreement by the Contractor/Service Provider, to
modify the Fare amount, structure, or applicability, including but not limited to the
implementation of discounted fares, promotional fares, or fare increases. Any such
changes shall be mutually agreed upon in writing by the Parties prior to
implementation. Contractor/Service Provider shall implement any approved fare
modifications and update its fare collection system accordingly.
● Advertising on Vehicles. Contractor/Service Provider may lease space not utilized
by City collateral (e.g. City and funder logos, fare information, shuttle logo) or
materials to generate advertising revenue. Revenue is intended to support shuttle
operations during the Contract. Contractor/Service Provider agrees to prepare, sell,
and execute advertising campaigns in conjunction with the Shuttle Program.
Contractor/Service Provider acknowledges and agrees that City’s written approval
will be required to enter into any advertising contracts or receipt of any Advertising
Revenue (defined below). Contractor/Service Provider further acknowledges and
agrees that any advertising all City policies for advertising, and all other applicable
rules, regulations, and laws related to advertising. Contractor/Service Provider will
be responsible to collect any and all revenues derived from any advertising
campaigns (“Advertising Revenue”) and to account for any and all Advertising
Revenue. Advertising Revenue shall be shared with the City by a fifty-fifty (50/50)
split. The City’s share of net advertising revenue shall be applied as a credit memo
to offset the City’s subsidy. Within thirty (30) days of Agreement expiration or
termination, Contractor/Service Provider shall pay the City any and all remaining
amounts of the City’s share of Advertising Revenue owed to the City. Advertising
Revenue means the gross advertising revenue received less all other costs and
expenses, including, but not limited to advertisement design, production costs,
installation and removal costs and customary commissions paid to media sales
representatives, incurred by the Contractor in connection with providing the
advertisement sales.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
● Marketing and Outreach. Contractor/Service Provider shall be responsible for
leading marketing and outreach efforts related to the Shuttle Program, including the
development and distribution of public-facing materials regarding the service and
any significant service changes, such as service area modifications or fare
adjustments, as appropriate. All activities must align with the City’s approved
branding guidelines and communications protocols. Responsibilities include the
following:
o Social Media Engagement. Contractor/Service Provider shall post and/or
reshare content across its social media platforms to promote the Chula Vista
Community Shuttle. Social media activity shall occur no less than once per
month and no more than three (3) times per month, unless otherwise
directed by the City. Content must reflect approved Chula Vista branding
materials. In addition, the Contractor/Service Provider shall design and lead
a social media campaign specific to the Chula Vista service, with defined
deliverables. Campaign activities may include, but are not limited to,
proactive posts, features about the program, and outreach to potential
advertisers through email, regional advertising RFPs, and other digital
marketing channels.
o Customer Outreach. Contractor/Service Provider is expected to lead
outreach efforts to inform potential riders about how to access shuttle
services, including how to request rides via the mobile application or call
center. Such outreach may be conducted in coordination with the City and
may include materials in English and Spanish, as appropriate.
o Advertising Outreach. The Contractor/Service Provider shall actively
pursue both national and regional advertising partners. The
Contractor/Service Provider will, on a quarterly basis, send marketing
materials to advertising partners outlining the benefits of advertising in
Chula Vista, and send communications to riders outlining advertising
opportunities. By the end of each quarter, the Contractor/Service Provider
will share a competitive market analysis of the advertising landscape.
o Organic Content Creation. Contractor/Service Provider shall create organic
social media content that highlights advertisers wrapping the vehicles,
features rider photos and testimonials, and promotes community events in
which the service is participating. These efforts are intended to humanize
the service, build local relevance, and increase ridership and advertiser
interest.
o Coordination and Approvals. Contractor/Service Provider shall coordinate
all outreach and marketing activities with designated City staff to ensure
alignment with the City's communication strategy. The City reserves the
right request edits or additional content as needed.
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Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
o Reporting Requirements. All marketing and outreach efforts shall be
documented in Contractor/Service Provider’s quarterly report to the City.
Reports must detail the type, frequency, and outcomes of marketing
activities, including analytics or performance metrics where applicable.
● Dashboard Access and Reporting Requirements. Contractor/Service Provider shall
provide the City with a data dashboard that allows the City to monitor service levels
via interactive, daily extracts available on the following day, and provide
anonymized trip information in a downloadable format. Contractor /Service
Provider shall anonymize and aggregate data, where needed, to prohibit sharing of
personally identifiable information. The dashboard will provide various Key
Performance Indicators (“KPI”) and data points including:
o Operating data by hour, day, week and month
▪ Requests
▪ Passengers
▪ Rides
▪ Cancellations
▪ Denials
o Operating data by day, week and month
▪ WAV completed rides
▪ No Show %
▪ Avg Pax / Trip
▪ AVG Wait Time
▪ AVG Trip Time
▪ AVG Response Time
▪ Total Trip Miles
▪ AVG User Rating
▪ Gallons of Gas Saved
▪ Passenger Miles Traveled
o Additional Operating Data, various formats and timeframes
▪ Unique users
▪ AVG User Age
▪ Heat Maps
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
▪ Pickup and Drop Off addresses
▪ Connection Rate %
▪ Unique Rider IDs or Unique identifier (UID) (Defined as distinct
alphanumeric codes or numbers assigned to each individual riders)
o Export Dashboards
o Interactive Tools
o Self-Serve Chart Building Functionality
o Top pick up and drop off locations / Addresses / Connection Rate
o Driver Rating Survey Outreach
o Call Center and Customer Service Survey Outreach
● Access to Service. Contractor/Service Provider will allow riders to request rides for
the Shuttle Program within a geo-fenced coverage zone through a mobile ride
request app available on iOS and Android, and by call in. Caregivers, senior living
community staff, and others can also make requests on behalf of riders.
o The Shuttle Program will include a wheelchair accessible vehicle (WAV)
that is an American with Disabilities Act (ADA) accessible vehicle on
standby for riders requiring ADA assistance, which can be indicated in the
ride request app, or when requesting by phone.
o Language Access. Contractor/Service Provider shall comply with
applicable federal and state requirements, including Title VI of the Civil
Rights Act and California Government Code Section 11135, to provide
language assistance services to individuals with limited English
proficiency (LEP), as required. Such services may include multilingual
call center support or access to interpretation services, as appropriate.
● Funding. The Parties acknowledge and agree that compensation for the Required
Services will be paid by City in accordance with Revised Exhibit A, Section 4,
below. The Parties acknowledge and agree that the Required Services will be
funded solely with the funding sources identified below, during the time periods
identified below:
Period Funding Source
●
●
●
●
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Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
● CMO will provide funding for all other Shuttle Program costs, including but
not limited to four (4) electric sedan vehicles and one (1) WAV van.
Operational
Year 3 ● CCDC will provide funding for all Shuttle Program costs, including but not
limited to five (5) electric sedan vehicles, one (1) WAV van, and one (1) non-
ADA van.
Operational
Year 4 ● The City will provide funds towards the operations and ensure compliance of
the CCDC and CMO funds, as well as any other funding sources. Funding
covered operations for five (5) electric sedan vehicles, one (1) WAV van, and
one (1) non-ADA van.
Operational
Year 5 ● The City and CCDC will provide funds towards the operations to ensure
compliance with the end of CMO Voucher November 19, 2026, with the
option to renew and continue services through the end of the operational year.
Funding shall cover operations for four (4) electric sedan vehicles, and one
(1) WAV van.
Operational
Year 6 and 7 ● The City and CCDC intend to provide funding towards the shuttle operations
for Year 6 (Fiscal Year 2027-28) and Year 7 (Fiscal Year 2027-29), subject
to City Council appropriation and availability of funds. The City’s
contribution shall not exceed the required one-to-one (1:1) local match
relative to CCDC funds for that fiscal year. Funding is anticipated to support
continued operations consistent with prior service levels, including fleet
composition and service delivery, as may be refined based on program
performance and available funding.
● Operating Planning and Time. Contractor/Service Provider will operate a shuttle
service, based upon the Shuttle Program nine (9) hours per day, five (5) days per
week Monday through Friday from 8 am to 5 pm. The Shuttle Program schedule
will be aligned with the needs of the community and Contractor/Service Provider
shall adjust the schedule at City’s request based on feedback from the
community/City as the data from the service becomes available. Any modifications
or expansions to the Required Services shall be subject to mutual agreement by the
Parties, availability of funding, and may be incorporated through an amended Scope
of Work.
● Performance Monitoring. The Contractor/Service Provider shall track and report
KPIs to support ongoing service evaluation and improvement. Such metrics shall
include, but are not limited to:
o Wait Times. The time between when a ride is requested and when the ride
is completed. The City seeks to achieve wait times of twenty (20) minutes
or less for more than ninety percent (90%) of rides provided during any
calendar month. Within thirty (30) days of execution of this amendment the
City and Contractor/Service Provider will meet to review the current
operating plan and discuss options available to optimize wait times. Wait
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
time data will be reviewed on a regular basis, and if wait times goals are not
met because of events and circumstances within the control of
Contractor/Service Provider, the Parties will agree on an appropriate service
credit.
▪ Average Wait Time: Contractor/Service Provider shall track the
amount of time between the moment a rider submits a trip request
and the moment the driver arrives at the designated pick-up location
and marks the rider as picked up. Wait time shall not include travel
time between pick-up and drop-off, delays attributable to rider
readiness, rider-initiated schedule changes, or cancellations.
Contractor/Service Provider shall use commercially reasonable
efforts to maintain an average rider wait time of sixteen (16) minutes
or less, measured on a monthly basis; provided, however, that delays
resulting from factors beyond the reasonable control of the
Contractor/Service Provider, pursuant to Operational Performance
Qualification section below, may be excluded where the
Contractor/Service Provider, documents the cause of such delay and
the City reasonably agrees such circumstances were outside the
Contractor/Service Provider’s control.
o Trip Denial Rate: Contractor/Service Provider, shall track the number of
trips, denials, and cancellations including reasons for such denials and/or
cancellations. The City and Contractor/Service Provider may monitor trip
denials rates and evaluate trends over time to inform the service planning,
service conditions, and service adjustments. For purposes of performance
monitoring, the trip denial rate shall be calculated as the number of denied
trips divided by the total number of requested trips. Combined rider
cancellation rates and driver trip denial and cancellation rates shall not
exceed thirty percent (30%) on a monthly basis; provided, however, that
denials or cancellations resulting from factors beyond the reasonable
control of the Contractor/Service Provider, pursuant to Operational
Performance Qualification section below, may be excluded where the
Contractor/Service Provider, documents the cause of such denial or
cancellation and the City reasonably agrees such circumstances were
outside the Contractor/Service Provider’s control.
o Driver Rating and Survey Outreach: Contractor/Service Provider shall
collect customer feedback related to driver service and rider experience to
support continuous service improvement. Contractor/Service Provider shall
make driver rating satisfaction surveys available to all riders and shall use
commercially reasonable efforts to encourage participation in such survey.
Contractor/Service Provider shall maintain an average score of at least three
(3) (“satisfactory”) on a scale of one (1) to five (5).
o Call Center and Customer Service Survey: Contractor/Service Provider
shall collect customer feedback related to call center service to support
continuous service improvement. Contractor/Service Provider shall make
call center rating survey opportunities available to riders who utilize call
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Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
center services, including through an optional post-call survey process, and
shall use commercially reasonable efforts to encourage participation in such
surveys. Contractor/Service Providers shall maintain an average call center
service rating of at least three (3) (“satisfactory”) on a scale of one (1) to
five (5).
o Operational Performance Qualification: Contractor/Service Provider shall
monitor operational performance and notify the City if factors within or
outside of the Contractor/Service Provider’s reasonable control materially
impact the ability to achieve these metrics.
o End of Voucher Year Reporting: On November 1, 2026, the
Contractor/Service Provider shall meet with City to discuss KPIs measured
from June 13, 2026 through October 31, 2026.
● Shared Ride Definition, Service Delivery and Rider Experience. Shared ride is
defined as a ride in which two or more ride requests are fulfilled during the same
trip with coordinated pick-ups and/or drop-offs. Shared rides shall be automatically
enabled through the Contractor/Service Provider’s routing algorithm based on ride
proximity, timing, and vehicle capacity.
o Maximum Occupancy Limits shall apply as follows:
▪ GEM vehicles (EC Sedans): maximum four (4) passengers per
vehicle.
▪ ADA-accessible van: maximum one (1) passenger in mobility
devices plus 6 seated passengers.
o All shared ride trips must adhere to the following conditions:
▪ Shared rides shall not cause a delay of more than ten (10) minutes
beyond the initial projected arrival window.
▪ Riders must be notified of an updated ETA if a shared stop is
added after booking.
o Shared rides shall be reported as completed trips and included in monthly
performance reports.
Contractor/Service Provider shall clearly inform riders in the app and through
customer service channels that shared rides are the default mode of service.
Passenger feedback regarding shared ride experiences, including concerns about
timeliness or ride length, shall be tracked and included in the Contractor/Service
Provider’s monthly report. Contractor/Service Provider shall work with the City to
implement service adjustments if repeated issues are identified.
Destinations. The focus of the service territory will be on key destinations for the senior
population, including healthcare, grocery, senior living facilities, and senior centers, and
other destinations as determined through community feedback in western Chula Vista, as
detailed in Exhibit D.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
● CMO Grant. Contractor/Service Provider acknowledges and agrees that City has
obtained a grant from the California Air Resource Board, Clean Mobility Options
Voucher Pilot Program (the “CMO Grant”) as a source of funding for the Required
Services. The grant application, grant agreement, and terms and conditions for the
CMO Grant are attached hereto and incorporated herein as Exhibit E collectively,
the “CMO Grant Materials”). Contractor/Service Provider agrees that it has read
and understands the requirements in the CMO Grant Materials. Contractor/Service
Provider agrees to comply, and cause the City to comply, with all requirements,
terms, and conditions of the CMO Grant and the CMO Grant Materials, and all
related requirements, terms, and conditions of the CMO Grant. Contractor/Service
Provider agrees that its failure to comply, or its failure to cause the City to comply,
with all requirements, terms, and conditions of the CMO Grant or the CMO Grant
Materials, or any related requirements, terms, and conditions of the CMO Grant
constitutes a material breach of this Agreement.
● CCDC Grant. Contractor/Service Provider acknowledges and agrees that City has
obtained a grant from the Community Congregational Development Corporation
(“CCDC”) as a source of funding for the Required Services (the “CCDC Grant”).
The grant application, grant agreement, and terms and conditions for the CCDC
grant are attached hereto as Exhibit F (collectively, the “CCDC Grant Materials”).
Contractor/Service Provider agrees that it has read and understands the CCDC
Grant Materials. Contractor/Service Provider agrees to comply, and cause City to
comply, with all requirements, terms, and conditions of the CCDC Grant and the
CCDC Grant Materials, and all related requirements, terms, and conditions of the
CCDC Grant. Contractor/Service Provider agrees that its failure to comply, or its
failure to cause the City to comply, with all requirements, terms, and conditions of
the CCDC Grant or CCDC Grant Materials, or any related requirements, terms, and
conditions of the CCDC Grant constitutes a material breach of this Agreement.
● Improvements. Contractor/Service Provider shall be responsible for the
construction, maintenance, operation, repair, and replacement of any improvements
necessary to operate the Shuttle Program. The Parties acknowledge and agree that
it is their intent that necessary construction, maintenance, operation, repair, and
replacement of improvements will be subject to reimbursement pursuant to Exhibit
A, Section 4 of this Agreement.
2. Responsibilities of the City
● For the Term of this Agreement, City will provide Contractor/Service Provider with
six (6) parking spaces for electric vehicle storage and eight (8) additional parking
spaces at no cost to Contractor/Service Provider. The Parties acknowledge and
agree that terms for use, including but not limited to location, of the parking spaces
have not yet been finalized. Upon finalization of such terms of use,
Contractor/Service Provider acknowledges and agrees that City may require
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
Contractor/Service Provider to enter to additional agreements with the City (i.e.
right-of-entry agreements, license agreements) or obtain permits (i.e. construction
permits) to memorialize such terms of use.
● City agrees to reasonably assist Contractor/Service Provider with access to Level
2 charging for the electric vehicles as appropriate.
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement
shall begin March 15, 2022, and end on November 19, 2026 for completion of all
Required Services. Upon mutual written agreement of the Parties executed no later than
ninety (90) days prior to expiration, the Agreement may be extended for up to three
additional one-year terms, or portion thereof, through June 12, 2029.
4. Compensation:
A. Form of Compensation
☒ Invoiced or agreed-upon amounts as follows:
The Parties acknowledge and agree that any and all payments for Shuttle Program costs
will be solely funded by CMO and CCDC, not the City, through the CMO Grant and the
CCDC Grant, respectively, for Year 1 through Year 3 of the Shuttle Program.
Contractor/Service Provider acknowledges and agrees that City is only obligated to pay
Contractor/Service Provider for the performance of Required Services to the extent that
grant funds are approved by the Granting Agencies and actually reimbursed to the City.
Contractor/Service Provider acknowledges and agrees that City shall have no obligation to
pay for the Required Services from any other funding source. The maximum amount to be
paid to the Contractor/Service Provider for services performed during Term of the
Agreement for Year 1 through Year 3 shall not exceed $2,497,833.00.
During Year 4 of operations, the Parties acknowledge and agree that any and all Fare and
Advertising Revenue credits generated will be applied during Year 4 of the Shuttle
Program, in a manner agreed to by the Parties in Task 1 and 3. The maximum amount to
be paid to the Contractor/Service Provider for services performed during the Term of the
Agreement in Year 4 shall not exceed $840,000.00 based on the rates and terms below.
During Year 5 of operations, the Parties acknowledge and agree that any and all Fare and
Advertising Revenue credits generated during the Term will be applied during Year 5 of
the Shuttle Program, in a manner agreed to by the Parties in Task 1 and Task 3. The
maximum amount to be paid to the Contractor/Service Provider for services performed
during the Term of the Agreement in Year 5 shall not exceed $680,000.00 based on the
rates and terms below.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
During Year 6, and Year 7 of operations, the Parties acknowledge and agree that continued
operations beyond Year 5, are subject to City Council appropriation and the availability of
alternative funding sources, that is subject to approval and annual appropriation.
The below are based on level of effort from these classifications and labor rates:
Circuit Labor Classifications
Role Labor Rate
The Driver Ambassador hours are necessary for all service / vehicle revenue hours for each
program, but the other titles are allocated out over numerous vehicles and/or locations and
contracts, so the entire cost of each employee is not the responsibility of the City to pay
for.
SERVICE DELIVERY: The Contractor/Service Provider shall be reimbursed for service
based on the pricing established below, per vehicle revenue hour (VRH) totals. On a
monthly basis the number of VRH’s provided by vehicle type will be multiplied by the
pricing per VRH rates presented below, to arrive at the monthly service fee.
Pricing per VRH
Sedan WAV Van
$77.04 $95.70
The turn-key Cost/Vehicle Revenue Hour includes driver, maintenance, fuel, registration,
vehicle leases, insurance, washing/cleaning, storage, software licensing, and mobile app
fees.
● Vehicle Revenue Hours (VRH): The hours that vehicles are actively in operation
and providing service for the transport of passengers.
o VRH includes the time when the vehicle is in service and available to accept
passenger requests, whether passengers are onboard or not. VRH also
includes layover defined below. The contractor’s drivers are in “Available”
status in the software application, or the vehicle is in “Unavailable” status
due to finishing out any rides routed to their queue before moving their
status.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
▪ Layover / Recovery Time: The hours scheduled at the end of the
route before the departure time of the next trip. This time is
scheduled for two reasons:
▫ To provide time for the vehicle operator to take a break
(layover); and
▫ To provide time to get back on schedule before the next trip
departs if the trip arrives late at the end of the route
(recovery).
o VRH excludes non-revenue activities such as deadheading (travel to or from
the service area without passengers), charging, maintenance, driver breaks
exceeding ten (10) minutes, or any time when the vehicle is out of service.
The contractor’s drivers go into "Unavailable" status throughout the day due
to the reasons mentioned above.
● Service Delivery Requirements. The contractor and project management team shall
work together in developing the service operations plan, including fleet schedule.
The agreed upon plan must be approved in writing by the project manager. The
contractor is required to adhere to the schedule.
B. Invoicing
Contractor/Service Provider shall submit invoices to the City on a monthly basis. City will
make payment, via ACH/wire transfer, within thirty (30) days following receipt and
approval of invoices by City.
Invoices shall contain supporting documentation for revenue collected including total
passenger fare and advertising revenue. This includes but is not limited to, VHRs per day,
week, and month; net fare revenue and net incurred credit card processing fees, etc.
If any invoices, following receipt and approval by the City, are more than sixty (60)
calendar days past due, the Contractor will have the right, in addition to all other rights and
remedies available to it, to suspend services or offset any balance or amounts owed on any
credits due to the City from net fare revenue, or net advertising revenue.
Contractor/Service Provider will provide City with a detailed invoice and breakdown by
Granting Agency for Required Services performed each month, within thirty (30) days of
the end of the month in which the Required Services were performed. Upon receipt of the
invoice, City will review the invoice and pay Contractor/Service Provider for approved
amounts within thirty (30) days, in an amount not-to-exceed $75,000.00 in Years 1 through
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
Year 3, with the exception of the initial invoice provided at the Effective Date for Planning
& Pre-launch Deliverables, $73,500.00 in Year 4, and $60,000.00 in Year 5.
In no event shall Contractor/Service Provider invoice amounts in excess of the not-to-
exceed amount of $340,000.00 through November 19, 2026. Any costs incurred beyond
the monthly not-to-exceed shall be the sole responsibility of the Contractor and shall not
be invoiced to the City or carried forward as a credit, offset, or adjustment to future
invoices.
AND
Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for
services performed through November 19, 2026, shall not exceed $340,000.00.
The Parties acknowledge that this Amendment commits the City to continue services with
Contractor for Year 5 operations of the Shuttle Program through November 19, 2026.
Continued operations beyond Year 5 as subject to City Council approval, annual
appropriation of funds, and the availability of matching funds, including but not limited to
a minimum one-to-one (1:1) match of funds provided by CCDC.
If the City exercises its option to extend the Agreement, the amount to be paid to the
Consultant for services provided during the term of that extension, through June 12, 2029,
shall not exceed $4,067,690.00.
5. Special Provisions:
☒ Other:
Assignment
Neither Party may assign, transfer, delegate, or subcontract this Agreement without the
other Party’s prior written consent, such consent not to be unreasonably withheld.
Notwithstanding the foregoing, City consents to Contractor/Service Provider’s assignment
of its rights to receive payments or accounts receivable due under this Agreement to Silicon
Valley Bank, a division of First-Citizens Bank & Trust Company (“SVB”), in connection
with a revolving line of credit or other financing facility. Any such assignment shall be
strictly limited to Contractor/Service Provider’s rights to payment and shall not modify any
other rights or obligations under this Agreement but shall be subject to assignee assuming
all obligations of Contractor/Service Provider under this Agreement related to the rights
assigned. This Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors and permitted assigns. Any other purported assignment or
delegation in violation of this Section shall be null and void.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
Program Compliance and Performance Expectations
At a minimum, the City shall incorporate applicable program requirements from funding
partners, including but not limited to the CCDC, into its agreement with the
Contractor/Service Provider, as appropriate. If such applicable program requirements are
not met, the City may take reasonable and appropriate action consistent with this
Agreement, which may include adjusting, withholding, or offsetting payment, in
accordance with the terms set forth herein.
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City of Chula Vista Amendment to Agreement No.: 2026-126
Consultant Name: CIRCUIT TRANSIT, INC. Rev. 10/08/2025
EXHIBIT D
CHULA VISTA COMMUNITY SHUTTLE YEAR 5 SERVICE AREA
Description: Redefining the western border just west of the I-5 Corridor, the eastern
border along Third Avenue, and the southern border to Palomar Street.
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v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
Consultant Services Agreements: Approve a Consultant Services Agreement with Claims Management
Associates, Inc. and Carl Warren & Company to Provide Claim Administrative Support Services
Report Number: 26-0130
Location: No specific geographic location
Department: City Attorney
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The proposed action is not a "Project" as defined under Section 15378 of the
California Environmental Quality Act (”CEQA”) State Guidelines. Therefore, pursuant to State Guidelines
Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt the following resolutions:
A) Awarding a consultant services agreement with Claims Management Associates, Inc. to provide
claims administrative support services; and
B) Awarding a consultant services agreement with Carl Warren & Company to provide claims
administrative support services.
SUMMARY
The City Attorney’s Office contracts claim administrative support services as part of the management of the
City’s Liability and First Party Claims programs. The City recently solicited bids for professional claims
administrative support services. Based on the evaluation process, staff recommends entering into two
agreements, one to Claims Management Associates, Inc. and one to Carl Warren & Company to meet the City’s
needs.
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ENVIRONMENTAL REVIEW
The proposed action was reviewed for compliance with the California Environmental Quality Act (CEQA),
and it was determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA
Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section
15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City Attorney’s Office manages the City’s Liability and First Party claims programs through third party
claims administrative support service providers who act as the representative of the City in the investigation,
adjustment, and resolution of claims.
SELECTION PROCESS
On October 24, 2025, the City of Chula Vista issued a Request for Proposal (“RFP”) P18-2026 for Claim
Administrative Support Services. The RFP was advertised in The Star News and published on PlanetBids.
Through PlanetBids, 1,306 potential bidders were notified with 15 prospective bidders downloading the bid
documentation. Of the 15 prospective bidders the City received four responsive proposals.
A selection committee completed a comprehensive evaluation of the proposals based on criteria that
included the consultants’ experience, past performance, personnel, approach to work and proposed costs.
Following the evaluation, the selection committee conducted interviews with the top two (2) ranked firms
and is recommending awards to both bidders to ensure the effective delivery of the required services. A
Notice of Intent to Award was issued to all firms that submitted proposals on January 28, 2026. The following
consultants were selected:
Carl Warren & Company
Claims Management Associates, Inc.
Carl Warren & Company and Claims Management Associates, Inc. will provide core claims administrative
support. Carl Warren & Company has a dedicated and robust First Party Loss Recovery and Subrogation
program and Claims Management Associates, Inc. primarily focuses on California Government Tort Liability
claims expertise. Thus, this dual award is determined to be in the City’s best interest as the City requires the
full range of services offered by both consultants.
SCOPE OF WORK
Under the proposed contracts, the consultants will handle California Government Tort Liability, Property
and Recovery Claims including onsite inspections and in-person contact with claimants and witnesses
material to investigations. The consultants will act as the representative of the City in the investigation,
adjustment, and resolution of claims.
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CONSULTANT AGREEMENTS
Staff recommend that the City enter into separate agreements with the two (2) selected Consultants. The
number and scope of projects and assignments for which the consultant services are required will vary from
year-to-year and will be ordered on an “as-needed” basis. Each agreement for Claims Administrative Services
with the Consultants will commence on July 1, 2026, for an initial term of one (1) year, expiring June 30,
2027, and may be extended for up to four (4) one-year options to extend for a total of five (5) years expiring
June 30, 2031.
The consultants will be compensated on a time and materials basis in accordance with the rates and
amounts established in the agreement, with a total combined not-to-exceed amount of $500,000 per
consultant over the five (5) year term.
The agreements with the two (2) consultants are attached as Attachments 1 and 2.
DECISION-MAKER CONFLICT
Staff have reviewed the decision contemplated by this action and have determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff are not independently aware and have not been informed by any City Council member of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact as these services will begin on July 1, 2026.
ONGOING FISCAL IMPACT
The costs associated with this agreement are included in the fiscal year 2026-27 budget of the Public Liability
Trust Fund. The table below outlines the not-to-exceed amount for the five (5) year term per consultant.
Claims
Management
Associates,
Inc.
Initial Term
Jul 26-Jun 27
Extension 1
FY 2027-28
Extension 2
FY 2028-29
Extension 3
FY 2029-30
Extension 4
FY 2030-31 TOTAL
$100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Carl Warren
& Company
Initial Term
Jul 26-Jun 27
Extension 1
FY 2027-28
Extension 2
FY 2028-29
Extension 3
FY 2029-30
Extension 4
FY 2030-31 TOTAL
$100,000 $100,000 $100,000 $100,000 $100,000 $500,000
Costs relating to services provided by Claims Management Associates, Inc. and Carl Warren & Company in
subsequent fiscal years will be considered as part of the annual budget development process.
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P a g e | 4
ATTACHMENTS
1. Two-Party Agreement – Carl Warren & Company
2. Two-Party Agreement – Claims Management Associates, Inc.
Staff Contact: RoseMarie Horvath, Deputy City Attorney
David Steward, Senior Risk Management Specialist
Page 101 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING BIDS AND AWARDING A
CONTRACT BETWEEN THE CITY AND CLAIMS
MANAGEMENT ASSOCIATES, INC. FOR CLAIMS
ADMINISTRATIVE SUPPORT SERVICES
WHEREAS, the City of Chula Vista (“City”) requires claims administrative support
services for City’s handling of California Government Tort Liability, Property and Recovery
claims, and the City desires to procure qualified consultants to perform a variety of claims
adminstrative services; and
WHEREAS, on October 24, 2025, the City issued a Request for Proposal (RFP) for Claims
Administrative Support Services; the City received four (4) proposals from conultants interested
in providing these services; and
WHEREAS, the City consultant selection committee completed its review of the proposals
and determined Claims Management Associates, Inc. (“Consultant”) is one (1) of two (2) most
responsive and responsible firms to provide such services; and
WHEREAS, City staff is recommending awarding to both selected bidders because it is in
the City’s best interest to ensure effective delivery of the claims administrative services; and
WHEREAS, the City may procure work on several projects of varying size and complexity
throughout the duration of the consultant agreement; and
WHEREAS, the consultant agreement has a one-year initial term with four (4) one-year
options to extend and the combined total of all assigned projects per the consultant agreement will
not exceed $500,000 in the aggregate; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner that it can deliver the services required of Consultant to City in accordance with the time
frames and the terms and conditions of the Consultant Services Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the Consultant Service Agreement for claims administrative support services,
between the City and Claims Management Associates, Inc., 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.
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Resolution No.
Page 2
Presented by Approved as to Form by
David Steward Marco A. Verdugo
Senior Risk Management Specialist City Attorney
Page 103 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING BIDS AND AWARDING A
CONTRACT BETWEEN THE CITY AND CARL WARREN &
COMPANY FOR CLAIMS ADMINISTRATIVE SUPPORT
SERVICES
WHEREAS, the City of Chula Vista (“City”) requires claims administrative support
services for City’s handling of California Government Tort Liability, Property and Recovery
claims and the City desires to procure qualified consultants to perform a variety of claims
adminstrative services; and
WHEREAS, on October 24, 2025, the City issued a Request for Proposal (RFP) for Claims
Administrative Support Services; the City received four (4) proposals from conultants interested
in providing these services; and
WHEREAS, the City consultant selection committee completed its review of the proposals
and determined Carl Warren and Company (“Consultant”) as one (1) of two (2) most responsive
and responsible firms to provide such services; and
WHEREAS, City staff is recommending awarding to both responsive bidders because it is
in the City’s best interest to ensure effective delivery of the claims administrative services; and
WHEREAS, the City may procure work on several projects of varying size and complexity
throughout the duration of the consultant agreement; and
WHEREAS, the consultant agreement has a one-year initial term with four (4) one-year
options to extend and the combined total compensation of all assigned projects per the consultant
agreement will not exceed $500,000 in the aggregate; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner that it can deliver the services required of Consultant to City in accordance with the time
frames and the terms and conditions of the Consultant Services Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the Consultant Service Agreement for claims administrative support services,
between the City and Carl Warren & Company, 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.
Page 104 of 761
City of Chula Vista - City Council
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Resolution No.
Page 2
Presented by Approved as to Form by
David Steward Marco A. Verdugo
Senior Risk Management Specialist City Attorney
Page 105 of 761
City of Chula Vista - City Council
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1 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
CITY OF CHULA VISTA
CONSULTANT SERVICES AGREEMENT
WITH CARL WARREN & COMPANY
TO PROVIDE CLAIMS ADMINISTRATIVE SUPPORT SERVICES
This Agreement is entered into effective as of July 1, 2026 (“Effective Date”) by and between the City of Chula
Vista, a chartered municipal corporation (“City”) and Carl Warren & Company, (“Consultant”) (collectively,
the “Parties” and, individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, City requires claims management services in order to investigate, process, supervise and
resolve liability claims and other potential claims asserted by third parties against the City; and
WHEREAS, in order to procure these services City solicited proposals in accordance with Chula Vista Municipal
Code Section 2.56.110 for “professional services”, received four (4) proposals, and selected Consultant as the most
qualified; and
WHEREAS, Consultant will provide quality claims mangement services at competitive rates using their
significant claims experience; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it
can deliver the services required of Consultant to City in accordance with the time frames and the terms and
conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
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2 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and
Consultant hereby agree as follows:
1. SERVICES
1.1 Required Services. Consultant agrees to perform the services and deliver to City the “Deliverables” (if
any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time
frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables
described in Exhibit A shall be referred to herein as the “Required Services.”
1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time
to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing
so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding
reduction in the compensation associated with the reduction.
1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and
ordinances governing procurement and purchasing authority, City may request Consultant provide additional
services related to the Required Services (“Additional Services”). If so, City and Consultant agree to meet
and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additi onal
Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid
consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services”
shall also become “Required Services” for purposes of this Agreement.
1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services
hereunder shall be performed in accordance with the highest standard of care exercised by members of the
profession currently practicing under similar conditions and in similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual
approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry
standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry
standards, or the willful misconduct of the Consultant or its subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Consultant to
provide additional security for performance of its duties under this Agreement, Consultant shall provide such
additional security prior to commencement of its Required Services in the form and on the terms prescribed
on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with
any and all applicable federal, state and local laws, including the Chula Vista Municipal Code.
1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from
City.
1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for City’s information
and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required
Services. Consultant agrees to take appropriate measures necessary to ensure that all subcontractors and
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3 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
personnel utilized by the Consultant to complete its obligations under this Agreement comply with all
applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any
subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant
shall ensure that each and every subcontractor carries out the Consultant’s responsibilities as set forth in this
Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’s
commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of
this Agreement, when the Parties have complied with all their obligations hereunder; provided, however,
provisions which expressly survive termination shall remain in effect.
2. COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant
in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment
are set forth in this Section 2.
2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed
each month, within thirty (30) days of the end of the month in which the services were performed, unless
otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date
of the Agreement. All charges must be presented in a line item format with each task separately explained in
reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced
to date, and the remaining amount available under any approved budget. Consultant must obtain prior written
authorization from City for any fees or expenses that exceed the estimated budget.
2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and Consultant that the Required
Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice
amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth
in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a
penalty of up to five percent (5%) of the amount invoiced.
2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed
on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the
holdback amount will be issued to Consultant.
2.5 Reimbursement of Costs. City may reimburse Consultant’s out-of-pocket costs incurred by Consultant
in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless
specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred
by Consultant in the performance of the Required Services.
2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of
any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be
responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors,
omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors.
2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or
reimbursement for any Consultant costs related to the performance of Required Services does not constitute
a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for
payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of
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4 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation
already paid, City will notify Consultant in writing and Consultant shall promptly return such amount.
3. INSURANCE
3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of
Required Services under this Agreement, and for twelve months after completion of Required Services, the
policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference
(the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section.
3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the
Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact
business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed
with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines
Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers ’ Compensation
Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its
policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not
under its policies. Any separate coverage for sub-consultants must also comply with the terms of this
Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as
additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified
as required in Exhibit B or as may otherwise be specified by City’s Risk Manager. The general liability
additional insured coverage must be provided in the form of an endorsement to the Consultant’s insurance
using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed
Operations coverage.
3.6 General Liability Coverage to be “Primary.” Consultant’s general liability coverage must be primary
insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or
self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from
the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide
insurance.
3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required
insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail,
return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put
into effect equivalent coverage(s).
3.8 Waiver of Subrogation. Consultant’s insurer(s) will provide a Waiver of Subrogation in favor of the
City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it
may have or may obtain to subrogation for a claim against City.
3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with
original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that
Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words
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5 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
“will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon
the company, its agents, or representatives” or any similar language must be deleted from all certificates. The
required certificates and endorsements should otherwise be on industry standard forms. The City reserves the
right to require, at any time, complete, certified copies of all required insurance policies, including
endorsements evidencing the coverage required by these specifications.
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability
and/or Errors & Omissions coverage are required and are provided on a claims -made form, the following
requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning
of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5)
years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a “Retro Date” prior to the effective date of this Agreement, the Consultant must purchase “extended
reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed
to limit the Consultant’s obligations under this Agreement, including Indemnity.
3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher
limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher
limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Consultant shall timely and fully protect, defend,
reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and
volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of
action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury,
in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to
any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees,
agents, and contractors, arising out of or in connection with the performance of the Required Services, the
results of such performance, or this Agreement. This indemnity provision does not include any claims,
damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the
Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused
by the active or passive negligent acts or omissions of the Indemnified Parties 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.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the
forgoing, if the services provided under this Agreement are design professional services, as defined by
California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity
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6 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
obligation under Section 1, above, shall be limited to the extent required by California Civil Code section
2782.8.
4.3 Costs of Defense and Award. Included in Consultant’s obligations under this Section 4 is Consultant’s
obligation to defend, at Consultant’s own cost, expense and risk, and with counsel approved in writing by
City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more
of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any
judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and
all related legal expenses and costs incurred by any of them.
4.4. Consultant’s Obligations Not Limited or Modified. Consultant’s obligations under this Section 4 shall
not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent
declaration by the Consultant. Furthermore, Consultant’s obligations under this Section 4 shall in no way
limit, modify or excuse any of Consultant’s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Consultant agrees to pay any and all costs and fees City incurs in enforcing
Consultant’s obligations under this Section 4.
4.6 Survival. Consultant’s obligations under this Section 4 shall survive the termination of this Agreement.
5. CONFLICTS OF INTEREST
5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code
require certain government officials and consultants performing work for government agencies to publicly
disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700).
In order to assure compliance with these requirements, Consultant shall comply with the disclosure
requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference.
5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700,
Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or
its employees or subcontractors who will be performing the Required Services, in any real property or project
which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained
any company or person, other than a bona fide employee or approved subcontractor working solely for
Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid
or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent
upon or resulting from the award or making of this Agreement. Consultant further warrants and represents
that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’s
subcontractors. Consultant further agrees to notify City in the event any such interest is discovered wheth er
or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties,
City shall have the right to rescind this Agreement without liability.
5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits
public agency officers from participating in any action related to a contract if such officer receives political
contributions totaling more than $500 within the previous twelve months, and for twelve months following
the date a final decision concerning the contract has been made, from the person or company awarded the
contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific
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contract. In order to assure compliance with these requirements, Consultant shall comply with the disclosure
requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference.
6. REMEDIES
6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required
Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other
covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other
rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to
terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the
Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior
to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City
may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such
cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and
all ”Work Product” (defined in Section 7 below) prepared by Consultant as part of the Required Services.
Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Consultant
may be entitled to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default
notice; provided, however, in no event shall such compensation exceed the amount that would have been
payable under this Agreement for such work, and any such compensation shall be reduced by any costs
incurred or projected to be incurred by City as a result of the Default.
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement,
or any portion of the Required Services, at any time and for any reason, with or without cause, by giving
specific written notice to Consultant of such termination or suspension at least fifteen (15) days prior to the
effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the
Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product
shall be City's sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to
receive just and equitable compensation for this Work Product in an amount equal to the amount due and
payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension
notice plus any additional remaining Required Services requested or approved by City in advance that would
maximize City’s value under the Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this
Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of
such termination except as expressly provided in this Section 6.
6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising
out of this Agreement against City unless a claim has first been presented in writing and filed with City and
acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal
Code, as same may be amended, the provisions of which, including such policies and procedures used by City
in the implementation of same, are incorporated herein by this reference. Upon request by City, Consultant
shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this
Agreement.
6.5 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 San Diego County, State of California. Consultant hereby waives any right to remove any action from San
Diego County as may otherwise be permitted by California Code of Civil Procedure section 394.
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6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If
Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the
California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first
class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A
to this Agreement, and that such service shall be effective five days after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other
materials or properties produced in whole or in part under this Agreement in connection with the performance
of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No
such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United
States or in any other country without the express, prior written consent of City. City shall have unrestricted
authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such
Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of
the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files
containing data generated as Work Product, Consultant shall make available to City, upon reasonable written
request by City, the necessary functional computer software and hardware for purposes of accessing,
compiling, transferring and printing computer files.
8. GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
8.2 Assignment. City would not have entered into this Agreement but for Consultant’s unique
qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement,
nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole
discretion.
8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they
have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder
without any further action or direction from Consultant or any board, principle or officer thereof.
8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements
expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject
matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein
by reference. All prior or contemporaneous agreements, understandings, representations, warranti es and
statements, oral or written, are superseded.
8.6 Record Retention. During the course of the Agreement and for three (3) years following completion
of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents,
reports, records, contracts, and supporting materials relating to the performance of the Agreement, including
accounting for costs and expenses charged to City, including such records in the possession of sub-
contractors/sub-consultants.
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9 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such
additional documents and instruments as may be reasonably required in order to carr y out the provisions of
this Agreement and the intentions of the Parties.
8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent
contractor. Neither City nor any of its officers, employees, agents or volu nteers shall have control over the
conduct of Consultant or any of Consultant’s officers, employees, or agents (“Consultant Related
Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed
employees of City, and none of them shall be entitled to any benefits to which City employees are entitled,
including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or
other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or
any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely
responsible for the payment of same and shall hold the City harmless with respect to same. Co nsultant shall
not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees
or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability
whatsoever against City, or bind City in any manner.
8.9 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
in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or
otherwise provided in writing.
8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of
the Parties included in this Agreement are intended to authenticate this writing and to have the same force and
effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached
to or logically associated with a record and executed and adopted by a Party with the intent to sign such record,
including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions
Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time.
(End of page. Next page is signature page.)
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10 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
SIGNATURE PAGE
CONSULTANT SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant
agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and
consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date.
APPROVED AS TO FORM
BY: _______________________________
Marco A. Verdugo
City Attorney
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June 2, 2026 Post City Council/Housing Authority Agenda
11 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
David Steward
276 Fourth Avenue
Building A
Chula Vista, CA 91910
619-476-5372
dasteward@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue
Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Consultant Contract Administration:
CARL WARREN & COMPANY
PO Box 2411
Tustin, CA 92781
909-436-4375
eanselm@venbrook.com
For Legal Notice Copy to:
CARL WARREN & COMPANY.
PO BOX 2411
Tustin, CA 92781
909-436-4375
eanselm@venbrook.com
2. Required Services
A. General Description:
Consultant will provide handling of California Government Tort Liability, Property and Recovery Claims
including onsite inspections and in person contact with claimants and witnesses material to investigations.
Consultant will act as the representative of the City in the investigation, adjustment, and resolution of claims
and will be required to provide Program Administration by providing professional/clerical claims service and
technically proficient staff.
B. Detailed Description:
Claim Adjustment and Investigation Services
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12 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
1. Within 30 days of receipt of claim, or sooner, Consultant will:
a. Complete initial investigation of liability, property, and recovery claims to include recorded
or written statements from involved participants, verification of damage or loss,
obtain relevant documents, including but not limited to, medical releases, police reports,
internal departmental reports and other records and documentation necessary to complete a
proper and thorough investigation of the claim and place initial loss reserves. List detailed
services to be provided by consultant. Best practice is to list tasks and outline expectations
and target completion dates.
b. Provide City an electronic preliminary report of findings addressing facts, liability, damages,
work remaining and recommendations.
2. Consultant will provide electronic status reports every 30 days thereafter as may be appropriate; sooner if
case developments warrant until case resolves. Thirty Day Reports shall include copies of correspondence
in lieu direct copies of routine daily email communications with claimants/others. Closing Reports shall
include a final invoice. Interim monthly invoices are welcome.
3. Consultant will provide any and all documentation to support liability/damages.
4. Consultant shall have the discretion to retain City's vehicle damage appraiser, LADCO, and arrange for
LADCO to invoice the City directly.
5. Consultant shall issue Claim Insufficiency letters, and a) notify City when claim denials will be issued; b)
inform claimants in advance why claim(s) will be denied; and 3) Issue Claim Rejection
Letters including a signed, dated Proof of Service document. PDF copies are to be transmitted to City.
6. Discretionary claim loss settlement authority of up to $10,000 is extended by City to a specific
representative of the Consultant. City will provide an authorization document to memorialize this
authority. File documentation must include a brief statement of settlement rationale.
7. Where settlement value is believed to be in excess of $10,000, Consultant is to notify City’s Claim contact,
via email, of recommended settlement amount and/or range including documentation of settlement
rationale. Email subject line to include "Settlement Authority Requested" statement.
8. Positions & Transactions. Consultant will be available during the course of the engagement to answer
City’s questions, provide relevant information, and render advice.
9. Consultant shall prepare and email to City a “claim payment request form” when matters are settled and
include a PDF version of the fully executed release document. Consultant shall deliver or mail the original
release document to City.
10. Consultant shall attend Small Claims Hearings upon request by City.
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13 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
11. Consultant shall place third parties on notice of City recovery/subrogation rights where appropriate.
12. Consultant shall handle to conclusion City’s Open Transfer files on a case-by-case basis subject to all terms
of the agreement as may be needed and requested by City.
13. Consultant will be required to set up new files, including claims data entry for electronic files, for import
of documents.
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin July 1,
2026 and end on June 30,2027 for completion of all Required Services.
4. Compensation:
A. Form of Compensation
☒ Time and Materials. For performance of the Required Services by Consultant as identified in Section 2.B.,
above, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of the
Required Services, at the rates or amounts as indicated below:
Annual Admin
Services (Accounting,
Carrier, Client Corp
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14 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
Compliance & Quality
Assurance)
Subrogation
Services
Percentage of Net
Recovery
21%
21%
21%
21%
21%
Custom Loss
Runs or
Dashboards
Development
Data conversion
Fees (for any
takeover claims,
upon request)
Data Transfer
Exit Fees
Additional
RMIS Users
(over the first 3
users)
Trust Set Up
Monthly
account
management
Monthly
reconciliations
Check Issuance
1099 Reporting,
Including IRS
File (if
requested)
B. Reimbursement of Costs
☒ None, the compensation includes all costs
Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed
including all extensions shall not exceed $500,000 .
5. Special Provisions:
☐ Permitted Sub-Consultants: None
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15 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
☐ Security for Performance: None
☒ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement
for Four (4) additional one-year terms. The City Manager or Director of Finance/Treasurer shall be authorized to
exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be
on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may
be increased by up to $0.00 for each extension. The City shall give written notice to Consultant of the City’s
election to exercise the extension via the Notice of Exercise of Option to Extend document..
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16 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
EXHIBIT B
INSURANCE REQUIREMENTS
Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the
following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x).
Type of Insurance Minimum Amount Form
☒ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
☒ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
☒ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
☒ Professional Liability
(Errors & Omissions)
$2,000,000 each occurrence
$2,000,000 aggregate
Other Negotiated Insurance Terms: NONE
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17 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
EXHIBIT C
CONSULTANT CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and
local government officials, including some consultants, to make certain public disclosures using a Statement of
Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of
the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics
training requirements.3
☒ A. Consultant will not exert influence over the official or contracting decisions of City and is therefore
EXCLUDED4 from disclosure.
☐ B. Consultant WILL exert influence over the official or contracting decisions of City and their disclosure
designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.)
Name Email Address Applicable Designation
Enter Name of Each Individual
Who Will Be Providing Service
Under the Contract – If
individual have different
disclosure requirements,
duplicate this row and
complete separately for each
individual
Enter email address(es) ☐ A. Full Disclosure
☐ B. Limited Disclosure (select one or more of
the categories under which the consultant shall file):
☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7.
Justification:
☒ C. Excluded from Disclosure
1. Required Filers
Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition
of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2. Required Filing Deadlines
Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online
filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required
annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
The City Department Director will designate each individual who will be providing services to the City pursuant to the
Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the
Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately
responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing
requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or
(866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written
determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: Janet Fernandez
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
Chula Vista Municipal Code §§2.02.010-2.02.040.
Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg.
18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude
corporation or limited liability company).
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18 City of Chula Vista Agreement No.: 2026-132
Consultant Name: Carl Warren & Company Rev. 10/8/2025
EXHIBIT D
CONSULTANT LEVINE ACT DISCLOSURE
California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula
Vista Officer5 (“Officer”) from taking part in decisions related to a contract if the Officer received a political
contribution totaling more than $500 within the previous twelve months, and for twelve months following the
date a final decision concerning the contract has been made, from the person or company awarded the contract .
The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The
Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at
under $50,000; contracts where no party receives financial compensation; or contracts between two or more
agencies.
☐ A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement.
☒ B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as
follows:
Current Officers can be located on the City of Chula Vista’s websites below:
Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council
City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us
Planning Commissioners – www.chulavistaca.gov/pc
Candidate for Elected Office – www.chulavistaca.gov/elections
1. Have you or your company, or any agent on behalf of you or your company, made political contributions
totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date
you completed this form, or the anticipated date of any Council action related to this Agreement?
YES: ☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political
contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement
or any Council action related to this Agreement?
YES: ☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any
subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating
in any actions related to the Agreement.
5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in
an agency. GC § 84308
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1 City of Chula Vista Agreement No.: 2026-131
Consultant Name: Claims Management Associates, Inc. Rev. 10/8/2025
CITY OF CHULA VISTA
CONSULTANT SERVICES AGREEMENT
WITH CLAIMS MANAGEMENT ASSOCIATES, INC.
TO PROVIDE CLAIMS ADMINISTRATIVE SUPPORT SERVICES
This Agreement is entered into effective as of July 1, 2026 (“Effective Date”) by and between the City of Chula
Vista, a chartered municipal corporation (“City”) and Claims Management Associates, Inc., (“Consultant”)
(collectively, the “Parties” and, individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, City requires claims management services in order to investigate, process, supervise and
resolve liability claims and other potential claims asserted by third parties against the City; and
WHEREAS, in order to procure these services City solicited proposals in accordance with Chula Vista Municipal
Code Section 2.56.110 for “professional services”, received four (4) proposals, and selected Consultant as the most
qualified; and
WHEREAS, Consultant will provide quality claims mangement services at competitive rates using their
significant claims experience; and
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it
can deliver the services required of Consultant to City in accordance with the time frames and the terms and
conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
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2 City of Chula Vista Agreement No.: 2026-131
Consultant Name: Claims Management Associates, Inc. Rev. 10/8/2025
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and
Consultant hereby agree as follows:
1. SERVICES
1.1 Required Services. Consultant agrees to perform the services and deliver to City the “Deliverables” (if
any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time
frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables
described in Exhibit A shall be referred to herein as the “Required Services.”
1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time
to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing
so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding
reduction in the compensation associated with the reduction.
1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and
ordinances governing procurement and purchasing authority, City may request Consultant provide additional
services related to the Required Services (“Additional Services”). If so, City and Consultant agree to meet
and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional
Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid
consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services”
shall also become “Required Services” for purposes of this Agreement.
1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services
hereunder shall be performed in accordance with the highest standard of care exercised by members of the
profession currently practicing under similar conditions and in similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual
approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry
standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry
standards, or the willful misconduct of the Consultant or its subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Consultant to
provide additional security for performance of its duties under this Agreement, Consultant shall provide such
additional security prior to commencement of its Required Services in the form and on the terms prescribed
on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with
any and all applicable federal, state and local laws, including the Chula Vista Municipal Code.
1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from
City.
1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for City’s information
and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required
Services. Consultant agrees to take appropriate measures necessary to ensure that all subcontractors and
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3 City of Chula Vista Agreement No.: 2026-131
Consultant Name: Claims Management Associates, Inc. Rev. 10/8/2025
personnel utilized by the Consultant to complete its obligations under this Agreement comply with all
applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any
subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant
shall ensure that each and every subcontractor carries out the Consultant’s responsibiliti es as set forth in this
Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’s
commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of
this Agreement, when the Parties have complied with all their obligations hereunder; provided, however,
provisions which expressly survive termination shall remain in effect.
2. COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant
in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment
are set forth in this Section 2.
2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed
each month, within thirty (30) days of the end of the month in which the services were performed, unless
otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date
of the Agreement. All charges must be presented in a line item format with each task separately explained in
reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced
to date, and the remaining amount available under any approved budget. Consultant must obtain prior written
authorization from City for any fees or expenses that exceed the estimated budget.
2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation that the
Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for
the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions
set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be
subject to a penalty of up to five percent (5%) of the amount invoiced.
2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed
on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the
holdback amount will be issued to Consultant.
2.5 Reimbursement of Costs. City may reimburse Consultant’s out-of-pocket costs incurred by Consultant
in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless
specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred
by Consultant in the performance of the Required Services.
2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of
any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be
responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors,
omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors.
2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or
reimbursement for any Consultant costs related to the performance of Required Services does not constitute
a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for
payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of
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4 City of Chula Vista Agreement No.: 2026-131
Consultant Name: Claims Management Associates, Inc. Rev. 10/8/2025
this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation
already paid, City will notify Consultant in writing and Consultant shall promptly return such amount.
3. INSURANCE
3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of
Required Services under this Agreement, and for twelve months after completion of Required Services, the
policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference
(the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section.
3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the
Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact
business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed
with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines
Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers ’ Compensation
Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its
policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not
under its policies. Any separate coverage for sub-consultants must also comply with the terms of this
Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as
additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified
as required in Exhibit B or as may otherwise be specified by City’s Risk Manager. The general liability
additional insured coverage must be provided in the form of an endorsement to the Consultant’s insurance
using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed
Operations coverage.
3.6 General Liability Coverage to be “Primary.” Consultant’s general liability coverage must be primary
insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or
self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from
the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide
insurance.
3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required
insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail,
return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put
into effect equivalent coverage(s).
3.8 Waiver of Subrogation. Consultant’s insurer(s) will provide a Waiver of Subrogation in favor of the
City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it
may have or may obtain to subrogation for a claim against City.
3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with
original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that
Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words
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“will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon
the company, its agents, or representatives” or any similar language must be deleted from all certificates. The
required certificates and endorsements should otherwise be on industry standard forms. The City reserves the
right to require, at any time, complete, certified copies of all required insurance policies, including
endorsements evidencing the coverage required by these specifications.
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability
and/or Errors & Omissions coverage are required and are provided on a claims -made form, the following
requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning
of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5)
years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a “Retro Date” prior to the effective date of this Agreement, the Consultant must purchase “extended
reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed
to limit the Consultant’s obligations under this Agreement, including Indemnity.
3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher
limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher
limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Consultant shall timely and fully protect, defend,
reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and
volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of
action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury,
in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to
any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees,
agents, and contractors, arising out of or in connection with the performance of the Required Services, the
results of such performance, or this Agreement. This indemnity provision does not include any claims,
damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the
Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused
by the active or passive negligent acts or omissions of the Indemnified Parties 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.
4.2. Intentionally Omitted.
4.3 Costs of Defense and Award. Included in Consultant’s obligations under this Section 4 is Consultant’s
obligation to defend, at Consultant’s own cost, expense and risk, and with counsel approved in writing by
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City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more
of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any
judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and
all related legal expenses and costs incurred by any of them.
4.4. Consultant’s Obligations Not Limited or Modified. Consultant’s obligations under this Section 4 shall
not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent
declaration by the Consultant. Furthermore, Consultant’s obligations under this Section 4 shall in no way
limit, modify or excuse any of Consultant’s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Consultant agrees to pay any and all costs and fees City incurs in enforcing
Consultant’s obligations under this Section 4.
4.6 Survival. Consultant’s obligations under this Section 4 shall survive the termination of this Agreement.
5. CONFLICTS OF INTEREST
5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code
require certain government officials and consultants performing work for government agencies to publicly
disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700).
In order to assure compliance with these requirements, Consultant shall comply with the disclosure
requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference.
5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700,
Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or
its employees or subcontractors who will be performing the Required Services, in any real property or project
which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained
any company or person, other than a bona fide employee or approved subcontractor working solely for
Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid
or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working
solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent
upon or resulting from the award or making of this Agreement. Consultant further warrants and represents
that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’s
subcontractors. Consultant further agrees to notify City in the event any such interest is discovered wheth er
or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties,
City shall have the right to rescind this Agreement without liability.
5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits
public agency officers from participating in any action related to a contract if such officer receives political
contributions totaling more than $500 within the previous twelve months, and for twelve months following
the date a final decision concerning the contract has been made, from the person or company awarded the
contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific
contract. In order to assure compliance with these requirements, Consultant shall comply with the disclosure
requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference.
6. REMEDIES
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6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required
Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other
covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other
rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to
terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the
Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior
to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City
may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such
cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and
all ”Work Product” (defined in Section 7 below) prepared by Consultant as part of the Required Services.
Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Consultant
may be entitled to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default
notice; provided, however, in no event shall such compensation exceed the amount that would have been
payable under this Agreement for such work, and any such compensation shall be reduced by any costs
incurred or projected to be incurred by City as a result of the Default.
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement,
or any portion of the Required Services, at any time and for any reason, with or without cause, by giving
specific written notice to Consultant of such termination or suspension at least fifteen (15) days prior to the
effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the
Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product
shall be City's sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to
receive just and equitable compensation for this Work Product in an amount equal to the amount due and
payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension
notice plus any additional remaining Required Services requested or approved by City in advance that would
maximize City’s value under the Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this
Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of
such termination except as expressly provided in this Section 6.
6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising
out of this Agreement against City unless a claim has first been presented in writing and filed with City and
acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal
Code, as same may be amended, the provisions of which, including such policies and procedures used by City
in the implementation of same, are incorporated herein by this reference. Upon request by City, Consultant
shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this
Agreement.
6.5 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 San Diego County, State of California. Consultant hereby waives any right to remove any action from San
Diego County as may otherwise be permitted by California Code of Civil Procedure section 394.
6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If
Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the
California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first
class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A
to this Agreement, and that such service shall be effective five days after mailing.
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7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other
materials or properties produced in whole or in part under this Agreement in connection with the performance
of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No
such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United
States or in any other country without the express, prior written consent of City. City shall have unrestricted
authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such
Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of
the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files
containing data generated as Work Product, Consultant shall make available to City, upon reasonable written
request by City, the necessary functional computer software and hardware for purposes of accessing,
compiling, transferring and printing computer files.
8. GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
8.2 Assignment. City would not have entered into this Agreement but for Consultant’s unique
qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement,
nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole
discretion.
8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they
have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder
without any further action or direction from Consultant or any board, principle or officer thereof.
8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements
expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject
matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein
by reference. All prior or contemporaneous agreements, understandings, representations, warranti es and
statements, oral or written, are superseded.
8.6 Record Retention. During the course of the Agreement and for three (3) years following completion
of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents,
reports, records, contracts, and supporting materials relating to the performance of the Agreement, including
accounting for costs and expenses charged to City, including such records in the possession of sub-
contractors/sub-consultants.
8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such
additional documents and instruments as may be reasonably required in order to carr y out the provisions of
this Agreement and the intentions of the Parties.
8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent
contractor. Neither City nor any of its officers, employees, agents or volu nteers shall have control over the
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conduct of Consultant or any of Consultant’s officers, employees, or agents (“Consultant Related
Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed
employees of City, and none of them shall be entitled to any benefits to which City employees are entitled,
including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or
other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or
any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely
responsible for the payment of same and shall hold the City harmless with respect to same. Co nsultant shall
not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees
or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability
whatsoever against City, or bind City in any manner.
8.9 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
in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or
otherwise provided in writing.
8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of
the Parties included in this Agreement are intended to authenticate this writing and to have the same force and
effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached
to or logically associated with a record and executed and adopted by a Party with the intent to sign such record,
including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions
Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time.
(End of page. Next page is signature page.)
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SIGNATURE PAGE
CONSULTANT SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant
agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and
consent to be bound by same, and that they are freely entering into this Agreement as of the Effective Date.
APPROVED AS TO FORM
BY: _______________________________
Marco A. Verdugo
City Attorney
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EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
David Steward
276 Fourth Avenue
Building A
Chula Vista, CA 91910
619-476-5372
dasteward@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue
Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Consultant Contract Administration:
CLAIMS MANAGEMENT ASSOCIATES, INC.
10755 Scripps Poway Parkway, Suite 501
San Diego, CA 92131
858-592-6742
egarbo@cmaadjuster.com
For Legal Notice Copy to:
Claims Management Associates, Inc.
10755 Scripps Poway Parkway, Suite 501
San Diego, CA 92131
858-592-6742
egarbo@cmaadjuster.com
2. Required Services
A. General Description:
Consultant will provide handling of California Government Tort Liability, Property and Recovery Claims
including onsite inspections and in person contact with claimants and witnesses material to investigations. The
Consultant will act as the representative of the City in the investigation, adjustment, and resolution of claims
and will be required to provide Program Administration by providing professional/clerical claims service and
technically proficient staff.
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B. Detailed Description:
Claim Adjustment and Investigation Services
1. Within 30 days of receipt of claim, or sooner, Consultant will:
a. Complete initial investigation of liability, property, and recovery claims to include recorded
or written statements from involved participants, verification of damage or loss,
obtain relevant documents, including but not limited to, medical releases, police reports,
internal departmental reports and other records and documentation necessary to complete a
proper and thorough investigation of the claim and place initial loss reserves. List detailed
services to be provided by consultant. Best practice is to list tasks and outline expectations
and target completion dates.
b. Provide City an electronic preliminary report of findings addressing facts, liability, damages,
work remaining and recommendations.
2. Consultant will provide electronic status reports every 30 days thereafter as may be appropriate; sooner if
case developments warrant until case resolves. Thirty Day Reports shall include copies of correspondence
in lieu direct copies of routine daily email communications with claimants/others. Closing Reports shall
include a final invoice. Interim monthly invoices are welcome.
3. Consultant will provide any and all documentation to support liability/damages.
4. Consultant shall have the discretion to retain City's vehicle damage appraiser, LADCO, and arrange for
LADCO to invoice the City directly.
5. Consultant shall issue Claim Insufficiency letters, and a) notify City when claim denials will be issued; b)
inform claimants in advance why claim(s) will be denied; and c) Issue Claim Rejection
Letters including a signed, dated Proof of Service document. PDF copies are to be transmitted to City.
6. Discretionary claim loss settlement authority of up to $10,000 is extended by City to a specific
representative of the Consultant. City will provide an authorization document to memorialize this
authority. File documentation must include a brief statement of settlement rationale.
7. Where settlement value is believed to be in excess of $10,000, Consultant will notify City’s Claim contact,
via email, of the recommended settlement amount and/or range including documentation of settlement
rationale. Email subject line to include "Settlement Authority Requested" statement.
8. Positions & Transactions. Consultant will be available during the course of the engagement to answer
City’s questions, provide relevant information, and render advice.
9. Consultant shall prepare and email to City a “claim payment request form” when matters are settled and
include a PDF version of the fully executed release document. Consultant shall deliver or mail the original
release document to City.
10. Consultant shall attend Small Claims Hearings upon request by City.
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11. Consultant shall place third parties on notice of City recovery/subrogation rights where appropriate.
12. Consultant shall handle to conclusion City’s Open Transfer files on a case-by-case basis subject to all terms
of the agreement as may be needed and requested by City.
13. Consultant will be required to set up new files, including claims data entry for electronic files, for import
of documents.
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin July 1,
2026 and end on June 30, 2027 for completion of all Required Services.
4. Compensation:
A. Form of Compensation
☒ Time and Materials. For performance of the Required Services by Consultant as identified in Section 2.B.,
above, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of the
Required Services, at the rates indicated below:
B. Reimbursement of Costs
☒ Invoiced or agreed-upon amounts as follows: Cost such as non-ordinary investigative services, independent
medical examinations, professional engineering services, laboratory tests, professional photography, statement
transcriptions and special delivery charge - Consultant to obtain City Approval prior to engaging services.
Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through
June 30, 2031 provided that all extensions are executed, shall not exceed $500,000 .
5. Special Provisions:
☐ Permitted Sub-Consultants: None
☐ Security for Performance: None
☒ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement
for Four (4) additional one-year terms. The City Manager or Director of Finance/Treasurer shall be authorized to
exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be
on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may
be increased by up to $0.00 for each extension. The City shall give written notice to Consultant of the City’s
election to exercise the extension via the Notice of Exercise of Option to Extend document.
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EXHIBIT B
INSURANCE REQUIREMENTS
Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the
following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x).
Type of Insurance Minimum Amount Form
☒ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
☒ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
☒ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
☒ Professional Liability
(Errors & Omissions)
$2,000,000 each occurrence
$2,000,000 aggregate
Other Negotiated Insurance Terms: NONE
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EXHIBIT C
CONSULTANT CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and
local government officials, including some consultants, to make certain public disclosures using a Statement of
Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of
the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics
training requirements.3
☒ A. Consultant will not exert influence over the official or contracting decisions of City and is therefore
EXCLUDED4 from disclosure.
☐ B. Consultant WILL exert influence over the official or contracting decisions of City and their disclosure
designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.)
Name Email Address Applicable Designation
Enter Name of Each Individual
Who Will Be Providing Service
Under the Contract – If
individual have different
disclosure requirements,
duplicate this row and
complete separately for each
individual
Enter email address(es) ☐ A. Full Disclosure
☐ B. Limited Disclosure (select one or more of
the categories under which the consultant shall file):
☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7.
Justification:
☐ C. Excluded from Disclosure
1. Required Filers
Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition
of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2. Required Filing Deadlines
Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online
filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required
annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
The City Department Director will designate each individual who will be providing services to the City pursuant to the
Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the
Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately
responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing
requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or
(866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written
determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: David Steward
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
Chula Vista Municipal Code §§2.02.010-2.02.040.
Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg.
18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude
corporation or limited liability company).
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EXHIBIT D
CONSULTANT LEVINE ACT DISCLOSURE
California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula
Vista Officer5 (“Officer”) from taking part in decisions related to a contract if the Officer received a political
contribution totaling more than $500 within the previous twelve months, and for twelve months following the
date a final decision concerning the contract has been made, from the person or company awarded the contract .
The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The
Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at
under $50,000; contracts where no party receives financial compensation; or contracts between two or more
agencies.
☐ A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement.
☒ B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as
follows:
Current Officers can be located on the City of Chula Vista’s websites below:
Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council
City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us
Planning Commissioners – www.chulavistaca.gov/pc
Candidate for Elected Office – www.chulavistaca.gov/elections
1. Have you or your company, or any agent on behalf of you or your company, made political contributions
totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date
you completed this form, or the anticipated date of any Council action related to this Agreement?
YES: ☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political
contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement
or any Council action related to this Agreement?
YES: ☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any
subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating
in any actions related to the Agreement.
5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in
an agency. GC § 84308
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June 2, 2026
ITEM TITLE
Animal Care and Control Services: Approve an Agreement Between the City of Chula Vista and the City of
Lemon Grove for Animal Care and Animal Control Services
Report Number: 26-0181
Location: No specific geographic location
Department: Animal Services
G.C. § 84308 Regulations Apply: No
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution approving an agreement between the City of Chula Vista and the City of Lemon Grove to
provide animal care and animal control services.
SUMMARY
The City of Chula Vista has provided animal control and sheltering services for the City of Lemon Grove since
1995. The City of Lemon Grove desires to continue contracting for animal care and animal control services
through City of Chula Vista Animal Services Department.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act
(CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the
State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant
to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable
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DISCUSSION
The City owns and operates an animal care facility located at 130 Beyer Way in the City of Chula Vista that
provides a range of animal care and animal control services to the Chula Vista community and jurisdictions
with whom the City contracts.
Since 1995, the City of Lemon Grove has contracted with the City of Chula Vista’s Animal Services Department
to provide animal control and shelter services to its residents. The City of Lemon Grove desires to continue
to contract for these services with the City of Chula Vista. Through this agreement, the City will continue to
provide animal care and animal control services, including but not limited to impounding, adoption,
redemption, the care and disposition of dogs, cats, and other small animals, and related administrative
services.
The agreement with will be for a one-year term, with four one-year options to extend, for a total term of up
to five years, beginning July 1, 2026. For these services, the City of Lemon Grove will pay the City of Chula
Vista $28,740 per month for fiscal year 2026-27, for total annual amount of $344,880. The monthly
compensation amount includes costs associated with the City’s provision and operation of an animal control
vehicle utilized in connection with services performed within Lemon Grove.
The pricing for each one‑year extension may be adjusted by the City based on operational costs, animal
intake volume, staffing costs, and other relevant factors; provided, however, that any increase in the annual
payment amount for a one‑year extension does not exceed five percent (5%) over the annual payment
amount in effect during the immediately preceding year.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and have determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act. (Gov. Code, § 87100, et seq.)
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact as the services for this agreement will begin on July 1, 2026.
ONGOING FISCAL IMPACT
There is no new net ongoing fiscal impact to the General Fund as a result of approving this resolution, as the
appropriation is fully offset by the revenue generated through this agreement. Future allocations for these
costs will be considered as part of the annual budget process.
ATTACHMENTS
1. Lemon Grove Animal Care and Animal Control Services Agreement
Staff Contact: Ashley Milo, Director of Animal Services
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Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT BY AND
BETWEEN THE CITY OF CHULA VISTA AND THE CITY OF
LEMON GROVE FOR ANIMAL CARE AND ANIMAL
CONTROL SERVICES
WHEREAS, the City of Chula Vista (“City”) owns and operates an animal care facility
located at 130 Beyer Way, Chula Vista, California, that provides a range of animal care and control
services to the Chula Vista community and jurisdictions with whom the City contracts; and
WHEREAS, the City of Lemon Grove (“Lemon Grove”) has contracted with City for
animal care and animal control services since 1995; and
WHEREAS, Lemon Grove desires to enter into an agreement with the City whereby the
City will continue to provide animal care and animal control services, including, but not limited to
impounding, adoption, redemption, the care and disposition of dogs, cats, and other small animals,
and related administrative services (“Services”); and
WHEREAS, Lemon Grove desires to continue contracting for such Services for a one-year
term, with four options to extend, for a total term of up to five years, commencing July 1, 2026.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the agreement between the City of Chula Vista and City of Lemon Grove for
animal care and animal control services, in the form presented, with such 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 the same.
Presented by Approved as to form by
Ashley Milo Marco A. Verdugo
Director of Animal Services City Attorney
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ANIMAL CARE AND ANIMAL CONTROL SERVICES AGREEMENT
BETWEEN THE CITY OF CHULA VISTA
AND CITY OF LEMON GROVE
This agreement (“Agreement”) between the City of Chula Vista (“City”), a California charter city and
municipal corporation, and the City of Lemon Grove (“Lemon Grove”), a municipal corporation, is
effective on July 1, 2026 (“Effective Date”). The City and Lemon Grove may be referred to herein
individually as a “Party” or collectively as the “Parties.”
RECITALS
WHEREAS, the City owns and operates an animal care facility located at 130 Beyer Way in the
City of Chula Vista (“Facility”) that provides comprehensive animal care and animal control services to
City residents and jurisdictions with whom it contracts; and
WHEREAS, Lemon Grove desires to enter into an agreement with the City, whereby the City
will provide animal care and animal control services, including but not limited to impounding, adoption,
redemption, the care and disposition of dogs, cats, and other small animals , and related administrative
services (“Services”); and
WHEREAS, the City is authorized to enter contracts with other agencies to provide Services.
NOW, THEREFORE, in consideration of mutual promises and other good and valuable
consideration, the Parties agree as follows:
AGREEMENT
1. TERM. This Agreement will commence on the Effective Date and will remain in effect for a period
of one (1) year (“Initial Term”), unless sooner terminated pursuant to this Agreement.
1.1. Options to Extend. Following the Initial Term, the Parties may extend this Agreement up to
four (4) additional one (1) year terms (each, an “Extension Term”) by mutual written
agreement. The Initial Term and any Extension Term will collectively be referred to herein
as the “Term.”
1.2. Extension Request. To extend the Agreement Term, Lemon Grove must submit a written
request to the City at least sixty (60) calendar days prior to the expiration of the current Term.
1.2.1. City Discretion. The City will have sole discretion to approve or deny any request to
extend the Agreement Term.
2. SCOPE OF SERVICES. The City will provide Services to the residents of Lemon Grove as
described herein.
2.1. Field Services. The City will provide the following field services.
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2.1.1. Officer. The City will provide animal control services to Lemon Grove through a
uniformed Animal Control Officer (“Officer”). The City retains full authority over
the direction, supervision, and delivery of such services, and the Officer will act at all
times under the City’s control. Lemon Grove may request priority responses, and the
City will make reasonable efforts to accommodate such requests.
2.1.1.1. Hours. The City schedules patrol services in Lemon Grove four (4) days per
week, Monday through Thursday, from 9:00 a.m. to 5:30 p.m., for up to 32
hours per week. The City may modify this schedule at any time, in its
discretion, based on staffing, operational needs, emergencies, or other
priorities. This schedule does not establish a guaranteed level of service or
minimum number of hours.
2.1.1.2. Extra Hours. If mutually agreed upon, Lemon Grove may extend the City’s
patrol days to five (5) days per week, Monday through Friday, or Tuesday
through Saturday, between the hours of 9:00 a.m. and 5:30 p.m., for no more
than 40 hours per week. Lemon Grove will request extra hours by notifying
the City in writing at least thirty (30) calendar days before the extended
patrol schedule would take effect. The Parties will memorialize the extra
hours in writing and Lemon Grove will reimburse the City for associated
staffing costs.
2.1.1.3. Overtime Hours. The City will endeavor to respond to reported
emergencies occurring before or after the patrol hours identified in Section
2.1.1.1 above. Lemon Grove will reimburse the City for all costs associated
with emergency responses as set forth in Section 4.
2.1.2. Type of Services. Except as provided in Section 3, field services will include
emergency transportation of injured or sick animals, issuing citations for violations
of state and local laws and ordinances, impounding stray animals, investigating biting
incidents, investigating complaints regarding vicious or dangerous animals, trapping
animals, investigating abuse and animal noise complaints, removing dead animals,
and educating the public regarding responsible pet ownership.
2.1.3. Responses to Requests for Service. The City will respond to requests for Services
in accordance with the Priority Response Chart and Priority Response Guidelines
below.
2.1.3.1. Priority Response Chart.
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2.1.3.2. Priority Level and Response Guidelines.
Level 1
Level 2
Level 3
Level 4
2.1.4. Additional Field Services. The City will provide the following additional field
services as requested.
2.1.4.1. Special Enforcement. The City will conduct special enforcement animal
control patrols as requested by Lemon Grove if there are no conflicts with
the City's needs. This will include special animal control patrol hours,
sweeps, and enforcement. Lemon Grove will pay all overtime costs for
special enforcement patrols as set forth by Section 4.1.3 below.
2.1.4.2. Special Events. The City will provide Officers for scheduled special events
as requested by Lemon Grove if there are no conflicts with the City's needs.
Lemon Grove will reimburse the City as set forth by Section 4.1.3.
2.1.5. Livestock. The City will use a contractor of its choice to remove livestock and bill
Lemon Grove for costs associated with the removal, including trailering, board, and
other related fees.
2.2. Shelter Services. The City will provide shelter services to the residents of Lemon Grove as
described below:
2.2.1. Shelter Location. Shelter services will be provided at the Facility.
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2.2.2. Hours of Operation.
2.2.2.1. The Facility is open to the public between 10:00 a.m. and 5:00 p.m. Tuesday
through Friday and 10:00 a.m. to 4:00 p.m. on Saturday.
2.2.2.2. The Facility is closed daily for lunch between 12:00 p.m. and 1:00 p.m. and
on Sunday, Monday, and all major holidays.
2.2.2.3. Changes in Hours of Operation. The City will notify Lemon Grove of
changes to Facility hours of operation in advance of such changes.
2.2.3. Types of Services.
2.2.3.1. Stray Animals. For purposes of this Agreement, “Stray Animal” means an
animal that is “at large” as defined in Chula Vista Municipal Code section
6.01.010, as may be amended from time to time. The City will accept Stray
Animals at no charge to Lemon Grove residents. (CVMC § 6.01.010.)
2.2.3.2. Relinquishing Animals. Lemon Grove residents may relinquish owned
animals to the Facility for euthanasia if medically or behaviorally
appropriate, or adoption, subject to available capacity and City policies. The
City will charge a fee for these Services.
2.2.3.3. Redeeming Animals. Lemon Grove residents may redeem animals from
the Facility. The City will charge a fee for these services.
2.2.3.4. Holding.
2.2.3.4.1. The City agrees to hold all dogs and cats for the minimum
holding period required by the California Food and Agricultural
Code and other applicable laws. Animals with communicable
diseases or severe injury or illness may be euthanized prior to
expiration of the holding period.
2.2.3.4.2. The City will provide veterinary care as needed during the
holding period and will make reasonable efforts to notify owners
of identified animals and advise them of the applicable holding
period.
2.2.3.4.3. Any animal that is not redeemed or otherwise reclaimed during
the holding period will be deemed relinquished to the City for
disposition in accordance with applicable laws, policies, and
procedures, as determined by the City.
2.2.3.4.4. Upon payment of all applicable fees, the City will release an
impounded animal to its legal owner. The City may waive fees
under special circumstances.
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2.2.3.5. No Medical Research. The City will not sell or give any live animal to a
medical research facility.
2.2.3.6. Spaying and Neutering. The City will ensure that all dogs, cats, and rabbits
adopted from the Facility are spayed or neutered at the time of adoption.
Additionally, the Facility will provide the public with low-cost spay/neuter
information and assistance when grants and donations are available.
2.2.3.7. Administrative Hearings. The City will conduct all impound and
administrative hearings as required by law, including Lemon Grove’s
Municipal Code. Lemon Grove will provide a hearing officer if the City is
unable to do so. The per-hearing fee is listed in Section 4.1.9.
2.2.3.8. Maintenance of Facility. The City will maintain a safe and sanitary
Facility. The City will use humane methods in the care, euthanasia, and
disposition of animals coming under its jurisdiction.
2.3. Administrative Services. The City will provide the following administrative services:
2.3.1. Meetings. The City will provide a representative to attend any Lemon Grove
meetings that involve animal control issues upon request and with reasonable notice.
2.3.2. Meet and Confer. A City representative will meet and confer in good faith with
Lemon Grove staff over operational issues associated with the administration of this
Agreement.
2.3.3. Reports. The City will provide monthly reports to Lemon Grove describing the
number of impounds, redemptions, euthanizations, service responses, and adoptions.
2.3.4. Notification. The City will work with Lemon Grove to establish an Officer
notification policy that addresses the nature, circumstances, and status of the incident.
The City will also provide, if requested, copies of all supporting documents and
information involving the incident. Lemon Grove will designate staff for notification
purposes.
2.3.5. Testimony. When requested by Lemon Grove, the City will make its employees
and/or other percipient witnesses under its control, available to testify in a court of
law, administrative hearing, or other proceeding, at no additional cost for any legal or
administrative proceeding arising out of the Services. This duty will survive the
termination of this Agreement.
3. EXCLUDED SERVICES. The following services are not considered Field Services and are not
covered under this Agreement.
3.1. Indigenous Animals. The City will not trap skunks, opossums, or other indigenous small
animals for the purpose of nuisance control. The City will only handle wildlife for purposes
of public safety or for humane reasons. The City will provide and monitor cat traps.
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3.2. Snakes. Only dangerous snakes will be removed from private property.
3.3. Dead Animals. Property owners are responsible for dead animals on private property.
3.4. Sick or Injured Animals. Sick or injured animals are the responsibility of the animal owner.
3.5. Licensing.
3.5.1. Lemon Grove acknowledges and agrees that the City may administer animal licensing
services and related animal records through DocuPet, or any successor third-party
licensing vendor designated by the City, in connection with the Services provided
under this Agreement.
3.5.2. Lemon Grove shall cooperate with the City’s licensing program requirements and use
of DocuPet in connection with the Services provided under this Agreement. The
manner and method of providing field services shall remain within the City’s
operational discretion. Lemon Grove shall provide information requested by the City,
to the extent legally permissible, to support licensing activities related to animals
originating within Lemon Grove.
3.5.3. The City shall retain responsibility for administration and oversight of its DocuPet
licensing platform and vendor relationship, including management of vendor-related
matters and or licensing services associated with the Services provided under this
Agreement.
3.5.4. License fee revenue attributable to animals licensed within Lemon Grove shall be
retained by Lemon Grove. Any license fee revenue actually received or collected by
the City in connection with Services under this Agreement shall be remitted or
credited to Lemon Grove in the manner established by the Parties.
4. LEMON GROVE OBLIGATIONS.
4.1. Payment. Lemon Grove will pay the City the following in the amount and manner set forth
herein.
4.1.1. Monthly Payments. Commencing on the Effective Date, Lemon Grove will pay the
City $28,740 per month for Fiscal Year 2026-27 (July 1, 2026 through June 30, 2027).
4.1.1.1. This amount includes an animal control truck rental charge of $20,455
annually, payable as part of the monthly payment in the amount of $1,704.58
per month. This truck rental charge was calculated to include estimated
vehicle-related costs, including maintenance and fuel, and an estimated 4.9
percent inflation adjustment.
4.1.1.2. The City will retain ownership, possession, operation, control, maintenance
responsibility, and scheduling authority over the truck, and the truck will be
used by City personnel or authorized City contractors in connection with the
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Services. Nothing in this Agreement shall be construed to create a separate
vehicle lease granting Lemon Grove any possessory or operational rights
with respect to the truck.
4.1.1.3. Unless otherwise agreed in writing, Lemon Grove will not be separately
invoiced for the truck rental charge during Fiscal Year 2026-27 because that
charge is included in the monthly payment described in this Section.
4.1.1.4. This Agreement supersedes any prior letter agreement, lease, amendment,
extension, or other arrangement between the Parties regarding Lemon
Grove’s rental of a vehicle from the City for animal care or animal control
services, including the Letter of Agreement - Lease entered into on or about
May 13, 2022, except for any payment obligations that accrued before the
Effective Date.
4.1.2. Invoices and Payment Date. The City will submit quarterly invoices to Lemon
Grove on or before the 15th day of the month following the billing period. Payment
is due within thirty (30) calendar days of the invoice date.
4.1.3. Overtime for Officers. The City will bill Lemon Grove for overtime costs incurred
in responding to emergencies outside of regular patrol hours or for additional services
described in Section 2.1.4. Overtime will be billed at the applicable overtime rate for
a minimum of two (2) hours per response, plus a $60 call-back charge for each
response.
4.1.4. Emergency Veterinary Services for Stray Animals.
4.1.4.1. Lemon Grove will be responsible for all costs incurred for necessary,
reasonable, and non-elective veterinary care provided by third-party
emergency veterinary hospitals or clinics for Stray Animals originating
within Lemon Grove that are received by such facilities outside of the City’s
normal operating hours and are subsequently transferred to the City’s
custody, including services provided prior to transfer of custody to the City.
4.1.4.1.1. Covered costs may include, but are not limited to, examination,
diagnostics, treatment, stabilization, boarding, and related
veterinary services.
4.1.4.1.2. The City may, at its discretion, either (i) pay such costs directly
and invoice Lemon Grove for reimbursement, or (ii) require
Lemon Grove to pay the veterinary provider directly. Lemon
Grove agrees to reimburse the City for any such costs within
thirty (30) calendar days of invoice.
4.1.4.1.3. The City will make reasonable efforts to notify Lemon Grove of
such incidents as soon as practicable; however, failure to provide
such notice will not relieve Lemon Grove of its obligation to pay
for such Services.
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4.1.4.1.4. This subsection applies only to Stray Animals, as defined in this
Agreement, and does not apply to owned animals unless
otherwise agreed in writing by the Parties.
4.1.5. Redemption Fees. For purposes of this Agreement, the term “Redemption Fee” will
mean any fee charged by the City for the return of an impounded animal to its legal
owner, as set forth in the City Municipal Code and operating policies, as may be
amended from time to time. Lemon Grove’s monthly payment obligations may be
reduced by any Redemption Fees the City collects under this Agreement.
4.1.6. Late Payments. The City will assess a penalty of five percent (5%) on late payments.
Additionally, a one and one half (1.5%) finance charge per month will be assessed on
the original delinquent amount.
4.1.7. Pricing of Agreement Extensions. Pricing for each Extension Term following the
Initial Term may be adjusted by the City based on operational costs, animal intake
volume, staffing costs, and other relevant factors; provided, however, that any
increase in the annual payment amount for an Extension Term will not exceed five
percent (5%) over the annual payment amount in effect during the immediately
preceding Term.
4.1.7.1. No later than April 30 of each year, the City will notify Lemon Grove of the
proposed annual payment amount applicable to the upcoming Extension
Term.
4.1.7.2. Any extension of the Agreement Term pursuant to Section 1 must be
memorialized in writing and identify the annual payment amount applicable
to the Extension Term.
4.1.8. Cat and Dog Spay/Neuter Clinics. The City will provide low cost spay/neuter clinics
at no cost to Lemon Grove if the City receives grants/donations that cover the costs
of these services. Lemon Grove will pay the City $1,500 per clinic for up to four
clinics per year if grants/donations do not cover the expense.
4.1.9. Administrative Hearings. Lemon Grove will pay the City $500 per hearing if the
City provides the hearing officer and $300 per hearing if Lemon Grove provides the
hearing officer.
4.2. Support Services.
4.2.1. Provision of Data. Lemon Grove will provide the City with a current listing of all
animal licenses issued, including permits or licenses for dogs, cats, dangerous dogs
or animals, exotic animals, kennels, pet shops, ranches or farms, dog shows,
obedience trials, and circuses.
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4.2.2. Notice of Scheduled Meetings. Lemon Grove will notify the City at least 72 hours
in advance of any legislative or administrative hearing where animal-related issues
are agendized and City employees will be required to appear.
4.2.3. Police Services. Lemon Grove will provide all police services necessary to carry out
its duties including police backup upon request of an Officer.
4.2.4. Weapons. Lemon Grove will permit Officers to carry and use tasers and tranquilizer
guns within the Lemon Grove city limits while on duty and in uniform.
5. FEES AND COSTS.
5.1. Fees Charged Lemon Grove Residents. Lemon Grove residents will be required to pay
fees for certain City-provided animal care and control services.
5.1.1. Relinquishment and Redemption. Unless otherwise agreed upon, the City will
charge fees in accordance with its Master Fee Schedule.
5.2. Fee Updates. The City may update fees to account for increased costs. As new fees are
adopted, such fees will replace those currently in effect.
6. INDEMNIFICATION.
6.1. Indemnity. Lemon Grove will defend, indemnify, protect, and hold harmless the City, its
elected and appointed officials, officers, directors, employees, agents, and volunteers
(“Indemnitee”), from and against any and all claims, demands, causes of action, costs,
expenses, liability, loss, damage or injury, in law or equity, to property or persons in any
manner arising out of, related to, or in connection this Agreement, including but not limited
to, the destruction of any animal delivered to and accepted by the Facility. In addition, this
indemnity provision covers all alleged acts, omissions, negligence, or willful misconduct of
Lemon Grove, its officials, officers, directors, employees, agents, and volunteers
(“Indemnitor”). This indemnity provision does not include any suits, damages, costs, or
expenses (including without limitation, attorneys’ fees) arising from the sole negligence or
willful misconduct of the Indemnitee.
6.2. Defense Obligations. Included in the obligations in this Section 6 is the Indemnitor’s
obligation to defend (with counsel reasonably approved by Indemnitee), at Indemnitor’s sole
cost, expense, and risk, all aforesaid claims, suits, actions, or other legal proceedings of every
kind that may be brought or instituted against the Indemnitee. Indemnitor will pay and satisfy
any judgment, award or decree that may be rendered against Indemnitee, for all legal expense
and cost incurred by each of them in connection therewith.
6.3. Insurance Proceeds. Indemnitor’s obligation to indemnify will not be restricted to insurance
proceeds, if any, received by the Indemnitee, its directors, officials, officers, employees,
agents, or volunteers.
6.4. Enforcement Costs. Indemnitor will pay all costs Indemnitee incurs enforcing the indemnity
and defense provisions set forth in this Section 6.
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6.5. Survival. Indemnitor’s obligations under Section 6 will survive the termination of this
Agreement.
7. FORCE MAJEURE.
7.1. Definition. An event of Force Majeure means an occurrence beyond the control and without
the fault or negligence of a Party, including unusually severe weather, flood, earthquake, fire,
lightning, and other natural catastrophes, acts of God or the public enemy, war, terrorist act,
riot, insurrection, civil disturbance or disobedience, strike, labor dispute, road impediments,
expropriation or confiscation of facilities, changes of applicable law, laws or orders related
to pandemics, such as COVID-19, or sabotage of facilities, so long as such Party makes good
faith and reasonable efforts to remedy the delays or failures in performance caused thereby.
7.2. Force Majeure.
7.2.1. The City will be excused from any delay or failure in performing its obligations under
this Agreement to the extent such delay or failure is caused by an event of Force
Majeure described in Section 7.1. Any delay or failure in performance resulting from
an event of Force Majeure will be excused only for the duration of the event causing
the delay or failure.
7.2.2. The City reserves the right, at its sole discretion, to temporarily suspend, change, and
resume the type and frequency of services provided to comply with Federal, State,
County and City laws or orders in response to an event of Force Majeure. Examples
of changed or limited services include closing the Facility to the public or offering
essential services by appointment only, such as identifying a lost pet, and suspending
in-person services such as vaccinations, licensing, owner surrenders, microchipping,
trap rental, and spay-neuter services. Resources and staffing allowing, the City will
make reasonable efforts to inform the public of service changes through its webpage
and social media platforms, and to provide services such as adoptions and licensing
through its website or by email.
7.3. Notice. The City will give written notice to Lemon Grove as soon after becoming aware of
the delay or failure in performance caused by an Event of Force Majeure as is reasonably
possible, but in any event within five (5) working days after the City becomes aware of such
delay or failure.
7.4. No Adjustments. No Event of Force Majeure will be a basis for monetary adjustment to
amounts payable under this Agreement.
8. TERMINATION OF AGREEMENT.
8.1. Termination for Convenience. Either Party may terminate this Agreement at any time and
for any reason by giving written notice of such termination and specifying the effective date
thereof at least ninety (90) calendar days before the effective date of such termination. If
Lemon Grove terminates the Agreement as provided herein, the City is entitled to receive
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just and equitable compensation for all services performed prior to the effective date of such
termination.
8.2. Termination for Cause. If, through any cause, either party substantially fails to fulfill in a
timely and proper manner any obligation under this Agreement, or violates any of its
covenants, agreements, or conditions, the Party not in breach may terminate this Agreement
by giving written notification of such termination and specifying the effective date thereof at
least five (5) calendar days before termination. If the Agreement is terminated by Lemon
Grove as provided for herein, the City is entitled to receive just and equitable compensation
for all services performed prior to the effective date of such termination.
9. NOTICE.
9.1. Method of Notification. All notices and demands will be given in writing by email, personal
delivery or first-class mail, postage prepaid, addressed to the Administrator, or his/her
designee, designated below for the respective Party.
9.2. Designation and Contact Information. The following are hereby designated as
Administrators for the purposes of this Agreement only:
9.2.1. City of Chula Vista
Deputy City Manager or designee
276 Fourth Avenue
Chula Vista, CA 91910
[Email Address]
9.2.2. City of Lemon Grove
City Manager or designee
3232 Main Street
Lemon Grove, CA 91945
[Email Address]
9.3. Changes. If the Administrator or address of either Party changes, notice of the change will
be sent to the other Party. After the receipt of the notice of change, all future notices or
demands will be sent as required by the notice of change.
10. MISCELLANEOUS PROVISIONS.
10.1. Headings. All section and paragraph headings are for convenience only and will not affect
the interpretation of this Agreement.
10.2. Gender & Number. Whenever the context requires, the use herein of (i) the neuter gender
includes the masculine and the feminine genders and (ii) the singular number includes the
plural number.
10.3. Reference to Paragraphs. Each reference in this Agreement to a section refers to a section
in this Agreement unless otherwise stated.
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10.4. Incorporation of Recitals and Exhibits. All recitals herein and exhibits attached hereto
are incorporated into this Agreement and are made a part hereof.
10.5. Covenants and Conditions. All provisions of this Agreement expressed as either covenants
or conditions on the part of the City or Lemon Grove will be deemed to be both covenants
and conditions.
10.6. Integration. This Agreement and any exhibits or references incorporated into this
Agreement fully express all understandings of the Parties concerning the matters covered in
this Agreement. No amendment, alteration, or modification of the terms or conditions of this
Agreement, and no verbal understanding of the Parties, their officers, agents, or employees
will be valid unless agreed upon in writing by both Parties. All prior negotiations and
agreements are merged into this Agreement.
10.7. Severability. In the event that any phrase, clause, paragraph, section or other portion of this
Agreement will become illegal, null, or void, or against public policy, for any reason, or will
be held by any court of competent jurisdiction to be illegal, null, or void, against public
policy, or otherwise unenforceable, the remaining portions of this Agreement will not be
affected and will remain in force and effect to the fullest extent permitted by law.
10.8. Drafting Ambiguities. The Parties are aware that they have the right to be advised by
counsel with respect to the negotiations, terms, and conditions of this Agreement, and the
decision of whether or not to seek advice of counsel with respect to this Agreement is a
decision that is the sole responsibility of each Party. This Agreement will not be construed
in favor of or against either Party by reason of the extent to which each Party participated in
the drafting of the Agreement.
10.9. Conflicts Between Terms. If an apparent conflict or inconsistency exists between the main
body of this Agreement and any exhibits, the main body of this Agreement will control. If a
conflict exists between an applicable federal, state, or local law, rule, regulation, order, or
code and this Agreement, the law, rule, regulation, order, or code controls. Varying degrees
of stringency among the main body of this Agreement, the exhibits, and laws, rules,
regulations, orders, or codes are not deemed conflicts, and the most stringent requirement
will control. Each Party will notify the other immediately upon the identification of any
apparent conflict or inconsistency concerning this Agreement.
10.10. Compliance With Law. The Parties will, at their sole cost and expense, comply with all
the requirements of municipal, state, and federal authorities now in effect or which may
hereafter be in effect related to this Agreement.
10.11. Reserved.
10.12. Administrative Claims Requirements and Procedures. No suit or arbitration will be
brought arising out of this Agreement against the City unless a claim has first been presented
in writing and filed with the City and acted upon by the City in accordance with the
procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as may be amended
from time to time, the provisions of which are incorporated by this reference as if fully set
forth herein, and such policies and procedures used by the City in the implementation of
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same. Upon request by the City, Lemon Grove will meet and confer in good faith with the
City for the purpose of resolving any dispute over the terms of this Agreement.
10.13. Attorneys’ Fees. In the event either Party institutes legal action arising out of or relating to
this Agreement, in any forum, each Party will bear its own attorneys’ fees and costs, except
as otherwise expressly provided in Section 6 regarding indemnification and defense
obligations.
10.14. Governing Law and Venue. This Agreement will be governed by and construed in
accordance with the laws of the State of California. Any action arising under or relating to
this Agreement will 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.
10.15. Municipal Powers. Nothing contained in this Agreement will be construed as a limitation
upon the powers of the City as a chartered municipality of the State of California.
10.16. Assignment. Lemon Grove will not assign this Agreement or any right or privilege
hereunder to any Party without the express written consent of the City. Consent to an
assignment by the City will not be deemed to be consent to any subsequent assignment. Any
such assignment without such consent will be void.
10.17. No Waiver. No failure of either Party to insist upon the strict performance by the other Party
of any covenant, term, or condition of this Agreement, nor any failure to exercise any right
or remedy consequent upon a breach of any covenant, term, or condition of this Agreement,
will constitute a waiver of any such breach of such covenant, term, or condition. No waiver
of any default hereunder will be implied from any omission to take any action on account of
such default. The consent or approval to or of any act requiring consent or approval will not
be deemed to waive or render unnecessary future consent or approval for any subsequent
similar acts. No waiver of any breach will affect or alter this Agreement, and each and every
covenant, condition, and term hereof will continue in full force and effect to any existing or
subsequent breach.
10.18. Additional Rights. No rights other than those specifically identified herein will be implied
from this Agreement.
10.19. Cumulative Remedies. All rights, options, and remedies of the City contained in this
Agreement will be construed and held to be cumulative, and no one of them will be exclusive
of the other, and the City will have the right to pursue any one or all of such remedies or to
seek damages or specific performance in the event of any breach of the terms hereof or to
pursue any other remedy or relief which may be provided by law or equity, whether or not
stated in this Agreement.
10.20. Independent Contractor. Unless otherwise stated in this Agreement, all persons employed
in the performance of services and functions for Lemon Grove under this Agreement will be
City employees, agents, or contractors thereof. No Lemon Grove employee will perform
services or functions that the City is obligated to provide under this Agreement. All City
employees who are employed by the City to perform the services pursuant to this Agreement
will be entitled solely to the rights and privileges given to City employees and will not be
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entitled, as a result of providing services pursuant to this Agreement, to any additional rights
and privileges given to Lemon Grove employees. Lemon Grove will not be liable for the
direct payment of any salaries, wages, or the compensation to City personnel, agents, or
contractors performing services pursuant to this Agreement, or any liability other than that
provided for in this Agreement. Unless specified otherwise, Lemon Grove will not be liable
for compensation or indemnity to any City employee, agent, or contractor for injury or
sickness or any other claims arising out of his or her employment. The City is an independent
contractor, and no agency relationship, either expressed or implied, is created by the
execution of this Agreement.
10.21. Good Faith. The Parties promise to use their best efforts to satisfy all conditions to this
Agreement and to take all further steps and execute all further documents reasonably
necessary to put this Agreement into effect. Both Parties agree to meet and confer in good
faith with the City's Animal Care Facility Administrator regarding operational matters upon
request.
10.22. Signing Authority. The representative for each Party signing on behalf of a governmental
entity hereby declares that authority has been obtained to sign on behalf of the entity and
agrees to hold the other Party or Parties hereto harmless if it is later determined that such
authority does not exist.
[Signature Page Follows]
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SIGNATURE PAGE TO
ANIMAL CARE AND ANIMAL CONTROL SERVICES AGREEMENT
CITY OF CHULA VISTA
Date:
Approved as to form:
Marco A. Verdugo Tiffany Allen
City of Chula Vista, City Attorney City of Chula Vista, City Manager
CITY OF LEMON GROVE
Date:
Approved as to form:
Kristen Steinke Tony Winney
City of Lemon Grove, City Attorney City of Lemon Grove, Interim City Manager
Attest:
________________________________
Joel Pablo
City of Lemon Grove, City Clerk
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June 2, 2026
ITEM TITLE
Contract Award and CIP Budget Transfer: Accept Bids and Award a Contract to Pavement Coatings Co. for
“Pavement Major Rehabilitation FY23/FY24/FY25” (STM0411/0414/0404) Project; and Amend the FY26
CIP Program Budget by Transferring Funds to STM0411
Report Number: 26-0135
Location: No specific geographic location
Department: Engineering and Capital Projects
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to California
Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15302
Class 2 (Replacement or Reconstruction).
Recommended Action
Adopt a resolution: (1) accepting bids and awarding a public works contract to Pavement Coatings Co. for
the “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25” (STM0411, STM0414, and STM0404)
project; and (2) amending the fiscal year 2025-26 Capital Improvement Program (CIP) budget by
transferring $980,850.00 from the available balance of “Pavement Major Rehabilitation FY26” (STM0416)
project to CIP Project STM0411, for completion of the project. (4/5 Vote Required)
SUMMARY
On May 8, 2026, the Director of Engineering and Capital Projects received seven (7) sealed bids for the
“Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25” (STM0411, STM0414, and STM0404)
project. After review of the bids, staff recommends awarding a public works contract to the lowest responsive
and responsible bidder, Pavement Coatings Co. Adoption of the resolution would: (1) accept bids and award
the public works contract to Pavement Coatings Co. in the amount of $9,899,577; (2) amend the fiscal year
2025-26 CIP Budget by transferring $980,850 from the available fund balance of “Pavement Major
Rehabilitation FY26” (STM0416) project to CIP project STM0411.
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ENVIRONMENTAL REVIEW
The Project was reviewed for compliance with the California Environmental Quality Act (CEQA), and it was
determined the Project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section
15301 Class 1 (Existing Facilities), which consists of the operation, repair, maintenance, permitting, leasing,
licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or
topographical features, involving negligible or no expansion of existing or former use; Section 15302 Class 2
(Replacement or Reconstruction), which consists of replacement or reconstruction of existing structures and
facilities where the new structure will be located on the same site as the structure replaced and will have
substantially the same purpose and capacity as the structure replaced; and where the exceptions listed in
State CEQA Guidelines Section 15300.2 would not apply in that no cumulative impacts were identified, no
significant effects on the environment were identified, the project is not adjacent to a scenic highway, no
historical resources would be affected by the action, and the project was not identified on a list of hazardous
waste sites pursuant to Section 65962.5 of the Government Code. Thus, no further environmental review is
required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25” (STM0411, STM0414, and STM0404)
project will primarily consist of the following improvements:
Roadway rehabilitation at various locations; and
Pavement striping and markings; and
Curb and gutter improvements at various locations; and
Curb ramp improvements at various locations.
Bidding Process
On April 17, 2026, Engineering and Capital Projects Department advertised and solicited bids for the project.
Seven (7) sealed bids were received on May 8, 2026. The submitted base bid totals from the prime
contractors were as follows:
Ranking Contractor Submitted Base Bid
The low bid of $9,899,577.00 by Pavement Coatings Co. is approximately 21% below the Engineer’s estimate
of $12,623,500.00. Staff has included an Additional Street List to the contract to complete more street
locations, at the City’s option, with this contract if there are remaining funds within the project budget.
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Pavement Coatings Co. is currently an active licensed contractor (License No. 303609) with the following
classification: A-General Engineering.
Staff recommends accepting bids and awarding the public works contract for the “Pavement Major
Rehabilitation FY22/23, FY23/24 and FY24/25” (STM0411 / STM0414 / STM0404)” project to the lowest
responsive and responsible bidder, Pavement Coatings Co., and transferring $980,850.00 in Transportation
Sales Tax funds from the available fund balance of “Pavement Major Rehabilitation FY26” (STM0416) to CIP
project STM0411 to cover the projected construction costs as shown in more detail in the Current-Year Fiscal
Impact section below.
Disclosure Statement
Attachment 1 is a copy of the Contractor’s Disclosure Statement.
Wage Statement
The Contractor that is awarded the contract and its subcontractors are required to pay prevailing wages to
persons employed by them for work under the proposed contract. The prevailing wage scales are those
determined by the Director of Industrial Relations, State of California.
This project is also subject to the City’s Project Labor Agreement (PLA). The Contractor and all
subcontractors shall comply with all applicable terms and conditions of the PLA.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found that Mayor John McCann
has property holdings within 1,000 feet of the boundaries of the property which is the subject of this action.
However, the decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer,
storm drainage or similar facilities, and the member’s property will not be affected disproportionately to
other properties receiving the same services. Consequently, pursuant to California Code of Regulations Title
2, sections 18700 and 18702.2(d)(1)), this item does not present a real property-related conflict of interest
under the Political Reform Act (Cal. Gov't Code § 87100, et seq.)
CURRENT-YEAR FISCAL IMPACT
Adoption of the resolution amends the fiscal year 2025-26 CIP budget by transferring $980,850.00 in
Transportation Sales Tax funds from the available balance of the “Pavement Major Rehabilitation FY26”
(STM0416) to CIP project STM0411 for the completion of the project. STM0416 remains within the planning
and allocation phase of the pavement program, and there is currently no construction contract or activity
that will be impacted as a result of this action.
A summary of expected project costs and available funding for STM0411 is as follows.
FUNDS REQUIRED FOR CONSTRUCTION
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F. Survey $6,210
Total Funds Required to Complete Project $
FUNDS AVAILABLE FOR CONSTRUCTION
–
–
–
–
TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $15,361,860.00
ONGOING FISCAL IMPACT
The proposed award and funds transfer will have no ongoing fiscal impact. All costs associated with the
completion of CIP project STM0411 will be covered within the project budget, with no additional funding
required. Upon completion of the project, the improvements will require routine roadway maintenance.
These expenses will be considered as part of the annual budget development process in future years.
ATTACHMENTS
1. Disclosure Statement
2. Bid Proposal
Staff Contact: Luis Schaar, PE, City Engineer / Director of Engineering & Capital Projects
Rosina Constanza, PE, Assistant Director of Engineering
Nolan Huelsman, PE, Principal Civil Engineer
José Serrato, PE, Senior Civil Engineer
Kyra Wright, Associate Engineer
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Form Rev 3/6/2023
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) ACCEPTING BIDS AND AWARDING A
PUBLIC WORKS CONTRACT FOR THE “PAVEMENT MAJOR
REHABILITATION FY22/23, FY23/24 AND FY24/25”
(STM0411 / STM0414 / STM0404) PROJECT TO PAVEMENT
COATINGS CO., AND (2) AMENDING THE FY 2025-26 CIP
BUDGET BY TRANSFERRING FUNDS FROM THE
“PAVEMENT MAJOR REHABILITATION FY26” PROJECT
(STM0416) TO THE “PAVEMENT MAJOR REHABILITATION
FY22/23” PROJECT (STM0411)
WHEREAS, on April 17, 2026, the Department of Engineering and Capital Projects
solicited bids for the “Pavement Major Rehabilitation FY22/23, FY23/24 and FY24/25”
(STM0411 / STM0414 / STM0404) project (“Project”) in accordance with Chula Vista Municipal
Code section 2.56.160(A); and
WHEREAS, on May 8, 2026, the Director of Engineering and Capital Projects received
seven (7) sealed bids for the Project; and
WHEREAS, the low bid for the Project was submitted by Pavement Coatings Co. in the
amount of $9,899,577.00 which is lower than the Engineer’s estimate of $12,623,500.00 by
$2,723,923.00 (or approximately 21%); and
WHEREAS, staff have determined that the bid submitted by Pavement Coatings Co. is
responsive in all material respects to the bid specifications and requirements, and that Pavement
Coatings Co. is the lowest responsive and responsible bidder; and
WHEREAS, staff recommends awarding the public works contract for the Project to
Pavement Coatings Co. in the amount of $9,899,577.00.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it:
1. Accepts bids and awards the public works contract for “Pavement Major Rehabilitation
FY22/23, FY23/24 and FY24/25” (STM0411 / STM0414 / STM0404) project to
Pavement Coatings Co. 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 in the amount of $9,899,577.00.
2. Amends the FY 2025-26 CIP Program Budget by transferring $980,850.00 from the
available Transportation Sales Tax Fund (Fund 227) balance from CIP STM0416 to
CIP STM0411.
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Resolution No.
Page 2
Presented by Approved as to form by
Luis Schaar Marco A. Verdugo
Director of Engineering and City Attorney
Capital Projects/City Engineer
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CITY OF CHULA VISTA DISCLOSURE STATEMENT
Pursuant to Council Policy 101-01, prior to any action upon matters that will require discretionary action
by the Council, Planning Commission and all other official bodies of the City of Chula Vista (the "City"),
a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions
for a City election must be filed. The following 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, material supplier.
Tim Schmid - President
James Wu - Vice President Secretary
Rick Yauney - Treasurer/CFO
2. If any person* identified pursuant to item one (1) above is a corporation or partnership, list the
names of all individuals with a two thousand dollars ($2,000) investment in the business
corporation/partnership) entity.
N/A N/A
3. If any person* identified pursuant to item one (1) above is a non-profit organization or trust, list
the names of any person serving as director of the non-profit organization or as trustee or
beneficiary or trustor of the trust.
N/A N/A
4. Please identify every person, including any agents, employees, consultants, or independent
contractors you have assigned to represent you before the City in this matter.
Tim Schmid - President
James Wu - Vice President/Secretary
Rick Yauney - Treasurer/CFO
5. Has any person* associated with this contract had any financial dealings with an official** of the
City as it relates to this contract within the past twelve (12) months? Yes No X
N/A N/A
If Yes, briefly describe the nature of the financial interest the official** may have in this contract.
Re'. 1110712025
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Have you made a contribution of more than two hundred fifty dollars ($250) within the past twelve
12) months to a current member of the Chula Vista City Council? No _ Yes — If yes, which
Council member?
NIA
7. Have you provided more than three hundred forty dollars ($340), or an item of equivalent value, to
an official** of the City in the past twelve (12) months? (This includes being a source of income,
money to retire a legal debt, gift, loan, etc.) Yes _ No
If Yes, which official** and what was the nature of item provided?
h!A
Date: Is[g12 i
Applicant
Pavement Coatings Co. Jtaf t Wu
rNameofCompany. Firm or Entity Priptr type name of Contractor/Applicant
Vice President/Secretary
Title
Person is defined as: any individual, firm, co -partnership, joint venture, association, social club,
fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city,
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.
Rev.1110712025
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June 2, 2026
ITEM TITLE
Gann Limit: Establish Appropriations Limit for Fiscal Year 2026-27
Report Number: 26-0059
Location: No specific geographic location
Department: Finance
G.C. § 84308 Regulations Apply: No
Environmental Notice: This activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3) no environmental review is required.
Recommended Action
Adopt a resolution establishing the appropriations limit (“Gann Limit”) for the City of Chula Vista (“City”) for
Fiscal Year 2026-27.
SUMMARY
Article XIIIB of the California Constitution requires each local government to establish a Gann Limit for the
General Fund by resolution each year at a regularly scheduled meeting or noticed special meeting. The
purpose of the Gann Limit is to restrict spending of certain types of revenues to a level predicated on a base
year amount increased annually by an inflation factor.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with CEQA, and it has been determined that the
activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the proposed
activity consists of a governmental fiscal/administrative activity which does not result in a physical change
in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is
not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
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P a g e | 2
DISCUSSION
Article XIIIB of the California Constitution imposes the concept of spending limits on local governments. This
Constitutional provision and related implementing legislation specifies that annual increases in general fund
appropriations financed from Proceeds of Taxes are limited to a base year amount increased annually by an
inflation factor. By definition, “Proceeds of Taxes” includes such revenues as property taxes, sales and use
taxes, utility user taxes, transient occupancy taxes, and state subventions. Revenues from other sources like
fees, charges, and federal grants are considered “Non-Proceeds of Taxes” and are not subject to the annual
spending limit. The proceeds of taxes for City have historically been less than the statutory Gann Limit.
Under current guidelines, local jurisdictions may choose among measures of population growth and inflation
to compute the annual inflation factor. These measures of growth are provided by the State Department of
Finance and the San Diego Assessor’s Office. According to these sources, the City’s population increased 0.41
percent. California per capita personal income increased by 4.95 percent and the City’s local assessment roll
increased by 6.00 percent from the addition of local, nonresidential new construction.
The City of Chula Vista’s annual population growth (0.41%) and the annual change in new non-residential
construction (6.00%) were selected to calculate the fiscal year 2026-27 Gann Limit.
The fiscal year 2026-27 Gann Limit has been calculated as follows:
The Proceeds of Taxes included in the fiscal year 2026-27 budget that are subject to the Gann Limit are
estimated to be $240,503,192 (see Attachment 1). The City has what is referred to as an appropriation “gap”
of $1,305,752,403 ($1,546,255,595 - $240,503,192). As a result, the City may collect and spend up to
$1,305,752,403 more in taxes during fiscal year 2026-27 without exceeding the Constitutional limit.
DECISION-MAKER CONFLICT
Staff have reviewed the decision contemplated by this action and have determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff are not independently aware, and have not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact as a result of this action.
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P a g e | 3
ONGOING FISCAL IMPACT
This action will enable the City to appropriate and spend tax revenues estimated at $240,503,192 included
in the fiscal year 2026-27 budget.
ATTACHMENTS
1. Fiscal Year 2026-27 Gann Limit
Staff Contact: Adrian Del Rio, Director of Finance/Treasurer
Page 210 of 761
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Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS
LIMIT (GANN LIMIT) FOR THE CITY OF CHULA VISTA FOR
FISCAL YEAR 2026-27
WHEREAS, Article XIIIB of the California Constitution, approved by the voters in 1979,
imposed the concept of spending limits on local governments; and
WHEREAS, this Constitutional provision and related implementing legislation specifies
that annual increases in appropriations financed from "Proceeds of Taxes" are limited to a base
year (1978-79) amount increased annually by an inflation factor comprised of the change in
population of the City combined with the greater of the change in new non-residential construction
or the change in the California per capita personal income; and
WHEREAS, by definition, "Proceeds of Taxes" includes such revenues as property taxes,
sales and use taxes, utility users taxes, transient occupancy taxes, and state subventions; and
WHEREAS, revenues from other sources like fees/charges and federal grants are
considered "Non-Proceeds of Taxes" and are not subject to the annual spending limit; and
WHEREAS, this calculation has always been perfunctory for the City of Chula Vista
(“City”), since the proceeds of taxes for City are far less than the statutory appropriation limit; and
WHEREAS, the State Department of Finance and the San Diego County Assessor's Office
are charged with providing the data necessary for local jurisdictions to establish their Gann Limit;
and
WHEREAS, according to these sources, for purposes of the fiscal year 2026-27 calculation,
the population increased 0.41 percent; and
WHEREAS, California per capita personal income increased by 4.95 percent and new non-
residential construction increased by 6.00 percent. Consequently, new non-residential construction
change was used in the formula to compute the Gann Limit as this increase is the greater of the
two amounts; and
WHEREAS, the fiscal year 2026-27 Gann Limit has been calculated to be $1,546,255,595;
and
WHEREAS, the "Proceeds of Taxes" as included in the fiscal year 2026-27 Proposed
Budget that are subject to the appropriations limit are estimated to be $240,503,192; and
Page 211 of 761
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Resolution No.
Page 2
WHEREAS, the City has what is referred to as an appropriation “gap” of $1,305,752,403
($1,546,255,595 - $240,503,192) (“Appropriation Gap”); and
WHEREAS, as a result of this Appropriation Gap the City may collect and spend up to
$1,305,752,403 more in taxes during fiscal year 2026-27 without exceeding the Constitutional
limit.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby establish a Gann Limit of $1,546,255,595 for fiscal year 2026-27 pursuant to
the requirements of Article XIIIB of the California Constitution and California Government
Code section 7910.
Presented by Approved as to form by
Adrian Del Rio Marco A. Verdugo
Director of Finance/Treasurer City Attorney
Page 212 of 761
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Attachment 1
FY 2026-27
Proceeds of Taxes Proposed Budget
Property Taxes 58,653,484
Property Tax in Lieu of VLF 36,098,746
Sales and Use Taxes 116,040,762
Transient Ocupancy Taxes 19,188,252
Utility Taxes 3,712,619
Other Local Taxes
Real Property Transfer Tax 1,475,278
Cannabis Excise Tax 2,771,800
Business License 1,244,862
Cardroom Fees/Business License 1,091,214
State Homeowners Property Taxes 226,175
Total Proceeds of Taxes 240,503,192
Appropriation Limit 1,546,255,595
GAP (Under Limit) (1,305,752,403)
Appropriation (Gann) Limit Gap Calculation
For Fiscal Year 2026-27
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
1,800,000,000
FY 22-23 FY 23-24 FY24-25 FY25-26 FY26-27
Mi
l
l
i
o
n
s
Proceeds of Taxes Compared to Legal Spending Limit
Proceeds of Taxes Appropriation Limit
Page 213 of 761
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v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
Contract Amendment: Approve the First Amendment of the Project Implementation Agreement Related to
the Financing and Development of the Bayfront Resort and Convention Center
Report Number: 26-0204
Location: Parcel H-3 of the Chula Vista Bayfront Master Plan Area
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice: The Project is adequately covered in a previously certified Final Environmental
Impact Report (“FEIR”) for the Bayfront Master Plan and Port Mast Plan Amendment (UPD #83356-EIR-658;
SCH No. 2005081077; certified by City Council Resolution No. 2010-113 on May 18, 2010).
Recommended Action
Adopt resolutions A) Approving the first amendment to the Project Implementation Agreement between the
City of Chula Vista, the Bayfront Project Special Task Financing District, the San Diego Unified Port District,
the Chula Vista Bayfront Facilities Financing Authority, and RIDA Chula Vista, LLC., and B) Acting as the
legislative body of the Bayfront Project Special Tax Financing District, approving the first amendment to the
Project Implementation Agreement between the City of Chula Vista, the Bayfront Project Special Task
Financing District, the San Diego Unified Port District, the Chula Vista Bayfront Facilities Financing Authority,
and RIDA Chula Vista, LLC.
SUMMARY
In June of 2021, the City Council approved the principal financing and implementation documents for the
Gaylord Pacific Resort and Convention Center project (“RHCC Project”). This approval included the Project
Implementation Agreement (PIA), which obligated RIDA Chula Vista, LLC (“RIDA”) to cause the development
and construction of the Convention Center and extensive public infrastructure improvements.
Staff is recommending a first amendment to the PIA. This amendment would update the timing of releasing
Chula Vista Bayfront Facilities Financing Authority (“Authority”) trustee funds to the Authority for
application in accordance with the Fourth Amended and Restated Revenue Sharing Agreement (“Revenue
Sharing Agreement”) between the City and the San Diego Unified Port District.
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The proposed revisions maintain sufficient reserves for any remaining Developer-related obligations while
providing flexibility for the City and Port District to access reimbursements that were incorporated into each
agency’s financial planning and budgets.
ENVIRONMENTAL REVIEW
The Project has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it
has been determined that the Project was adequately covered in the previously certified Final Environmental
Impact Report (“FEIR”) for the Bayfront Master Plan and Port Mast Plan Amendment (UPD #83356-EIR-658;
SCH No. 2005081077; certified by City Council Resolution No. 2010-113 on May 18, 2010). Therefore, no
further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
This amendment to the Project Implementation Agreement will be presented to the Chula Vista Bayfront
Facilities Financing Authority on June 17, 2026.
DISCUSSION
The Chula Vista Bayfront Master Plan (CVBMP) represents a long-term collaborative effort between the City
of Chula Vista (“City”) and the San Diego Unified Port District (“Port District”) to transform approximately
535 acres of underutilized bayfront property into a regional waterfront destination featuring visitor-serving
uses, parks, habitat restoration, infrastructure improvements, and economic development opportunities.
Phase 1 implementation of the CVBMP includes the development of the Gaylord Pacific Resort and
Convention Center project (“RHCC Project”), associated public infrastructure improvements, parks, and
related amenities.
In 2018, the City and Port District approved a Disposition and Development Agreement and an initial
Revenue Sharing Agreement establishing the framework for public participation in the financing and
implementation of the RHCC Project. Subsequent actions refined the financing structure, public agency
contributions, and implementation responsibilities associated with the project.
On June 15, 2021, the City Council approved the principal financing and implementation documents
necessary to advance the RHCC Project including the Project Implementation Agreement (“PIA”).
On May 10, 2022, the City Council approved additional financing-related actions associated with increased
project construction costs and modifications to the financing structure resulting from market volatility,
inflationary pressures, and construction cost escalation. These actions included approval of additional public
contributions, amendments to financing agreements, and revisions to the Revenue Sharing Agreement
intended to preserve the financial feasibility of the RHCC Project while maintaining the overall financing
framework previously approved by the City and Port District.
Under the approved financing structure, the City and Port District committed to financing a public
contribution toward construction of the convention center and certain Phase 1A infrastructure
improvements through Authority-issued debt and other pledged revenue sources. RIDA Chula Vista, LLC
(“RIDA”) was obligated to construct the resort hotel, convention center, parking structure, and developer-
related infrastructure improvements.
The PIA is between the City, the Bayfront Project Special Tax Financing District, the Port District, The Chula
Vista Bayfront Facilities Financing Authority (“Authority”), and RIDA. The PIA obligated RIDA to develop and
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P a g e | 3
construct the Convention Center and certain Phase 1A Infrastructure Improvements. The Gaylord Pacific
Resort and Convention Center opened on May 15, 2025 and the City, Port District and RIDA have been
working together to finalize the remaining details.
As part of the financing structure, for Bonds issued by the Authority on May 26, 2022, an Authority Surplus
Fund was established to hold certain residual project revenues. Staff recommend amending two sections of
the PIA to clarify how the Authority Surplus Fund may be used.
Both the City and the Port District anticipated the availability of these reimbursements for Bayfront-related
expenditures and incorporated the projected reimbursements into their respective budgets.
Proposed Amendment to the PIA
The proposed amendment to the PIA revises Section 9.2.1.5(c) and Section 9.5.1 to allow the Authority to
transfer a portion of the funds held in the Authority Surplus Fund for use in accordance with the Revenue
Sharing Agreement, as long as the balance remaining in the Authority Surplus Fund is at least $3,000,000 (or
a lesser amount with the consent of the Developer).
This amendment preserves the original intent of maintaining sufficient funds to satisfy any remaining
Developer-related obligations, while establishing a minimum balance requirement that is consistent with
other reserve provisions within the PIA. It also clarifies that, so long as the minimum reserve balance is
maintained, the Authority may direct transfers from the Authority Surplus Fund for any lawful purpose
permitted under the Indenture and Revenue Sharing Agreement.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings
within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item
does not present a disqualifying real property-related financial conflict of interest under California Code of
Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code
§87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of this resolution will allow the Authority to reimburse the City’s General Fund per the Revenue
Sharing Agreement for 73.6% of the Bayfront Fire Station operating costs. This reimbursement was included
in the fiscal year 2025-26 budget.
ONGOING FISCAL IMPACT
This amendment will allow the Authority to make annual distributions to reimburse the City’s General Fund
consistent with the Revenue Sharing Agreement for 73.6% of the Bayfront Fire Station operating costs. The
revenue is estimated to be $3,099,702 in the fiscal year 2026-27 budget and will continue to be incorporated
into the annual budget process.
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P a g e | 4
ATTACHMENTS
1. First Amendment to Project Implementation Agreement
2. Project Implementation Agreement
Staff Contact: Sarah Schoen, Deputy City Manager
Page 217 of 761
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June 2, 2026 Post City Council/Housing Authority Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING FIRST AMENDMENT TO THE
PROJECT IMPLEMENTATION AGREEMENT BETWEEN THE
CITY, BAYFRONT PROJECT SPECIAL TAX FINANCING
DISTRICT, THE SAN DIEGO UNIFIED PORT DISTRICT, THE
CHULA VISTA BAYFRONT FACILITIES FINANCING
AUTHORITY, AND RIDA CHULA VISTA, LLC
WHEREAS, the Chula Vista Bayfront Master Plan represents a long-term collaborative
effort between the City and the San Diego Unified Port District (the “Port District”) to transform
approximately 535 acres of underutilized bayfront property into a regional waterfront destination
featuring visitor-serving uses, parks, habitat restoration, infrastructure improvements, and
economic development opportunities; and
WHEREAS, Phase 1 implementation of the Chula Vista Bayfront Master Plan includes the
development of the Gaylord Pacific Resort and Convention Center project (the “RHCC Project”),
associated public infrastructure improvements, parks, and related amenities; and
WHEREAS, in 2018, the City and Port District approved a Disposition and Development
Agreement and an initial Revenue Sharing Agreement establishing the framework for public
participation in the financing and implementation of the RHCC Project; and
WHEREAS, on June 15, 2021, the City Council approved the principal financing and
implementation documents necessary to advance the RHCC Project, including the Project
Implementation Agreement (the “PIA”); and
WHEREAS, on May 10, 2022, the City Council approved additional financing-related
actions associated with increased project construction costs and modifications to the financing
structure, including approval of additional public contributions, amendments to financing
agreements, and revisions to the Fourth Amended and Restated Revenue Sharing Agreement (the
“Revenue Sharing Agreement”); and
WHEREAS, the PIA executed by the City, the Bayfront Project Special Tax Financing
District, the Port District, the Chula Vista Bayfront Facilities Financing Authority (the
“Authority”), and RIDA Chula Vista, LLC (“RIDA”), and obligated RIDA to cause the
development and construction of the convention center and certain Phase 1A infrastructure
improvements; and
WHEREAS, the Gaylord Pacific Resort and Convention Center opened on May 15, 2025,
and the City, Port District, and RIDA continue to collaborate to finalize post-completion
administrative and financial close-out items; and
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Resolution No.
Page 2
WHEREAS, as part of the financing framework for the bonds issued by the Authority on
May 26, 2022, the Authority Indenture of Trust established an Authority Surplus Fund to hold
certain residual project revenues; and
WHEREAS, the Authority Indenture of Trust provisions restrict the Authority’s ability to
access surplus funds for reimbursement purposes contemplated under the Revenue Sharing
Agreement between the City and the Port District; and
WHEREAS, the City and Port District anticipated the availability of these reimbursements
for Bayfront-related expenditures and incorporated the projected reimbursements into their
respective financial planning and budgets; and
WHEREAS, the proposed First Amendment to the PIA revises Sections 9.2.1.5(c) and
9.5.1 to allow the Authority to transfer a portion of the funds held in the Authority Surplus Fund
for use in accordance with the Revenue Sharing Agreement, provided that the balance remaining
in the Authority Surplus Fund is at least $3,000,000, or a lesser amount with the consent of the
Developer; and
WHEREAS, the proposed First Amendment preserves the original intent of maintaining
sufficient funds to satisfy any remaining Developer-related obligations while allowing transfers
from the Authority Surplus Fund for lawful purposes permitted under the Authority Indenture of
Trust and Fourth Amended and Restated Revenue Sharing Agreement; and
WHEREAS, approval of the First Amendment will allow distributions from the Authority
Surplus Fund that may reimburse the City’s General Fund consistent with the Revenue Sharing
Agreement, including reimbursement for an amount equivalent to 73.6% of the cost of Bayfront
Fire Station operations; and
WHEREAS, the Project has been reviewed for compliance with the California
Environmental Quality Act (“CEQA”), and it has been determined that the Project was adequately
covered in the previously certified Final Environmental Impact Report (“FEIR”) for the Bayfront
Master Plan and Port Mast Plan Amendment (UPD #83356-EIR-658; SCH No. 2005081077;
certified by City Council Resolution No. 2010-113 on May 18, 2010).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the First Amendment to Project Implementation Agreement, between the City,
Bayfront Project Special Tax Financing District, The San Diego Unified Port District, The Chula
Vista Bayfront Facilities Financing Authority, and RIDA Chula Vista, 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.
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Resolution No.
Page 3
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Deputy City Manager City Attorney
Page 220 of 761
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June 2, 2026 Post City Council/Housing Authority Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, ACTING AS THE LEGISLATIVE BODY OF
THE BAYFRONT PROJECT SPECIAL TAX FINANCING
DISTRICT APPROVING FIRST AMENDMENT TO THE
PROJECT IMPLEMENTATION AGREEMENT BETWEEN THE
CITY, BAYFRONT PROJECT SPECIAL TAX FINANCING
DISTRICT, THE SAN DIEGO UNIFIED PORT DISTRICT, THE
CHULA VISTA BAYFRONT FACILITIES FINANCING
AUTHORITY, AND RIDA CHULA VISTA, LLC
WHEREAS, the City of Chula Vista (the “City”) is a municipal corporation and charter
city duly organized and existing under a charter pursuant to which the City has the right and power
to make and enforce all laws and regulations with respect to municipal affairs and certain other
matters in accordance with and as more particularly provided in Sections 3, 5, and 7 of Article XI
of the Constitution of the State of California and the Charter of the City; and
WHEREAS, the City and the San Diego Unified Port District (the “Port District”), are
undertaking a collaborative planning process with the community to develop a comprehensive
Chula Vista Bayfront Master Plan (the “CVBMP”) for the Chula Vista Bayfront Project; and
WHEREAS, Chapter 3.61 of the Chula Vista Municipal Code (“Chapter 3.61”) was
enacted for the purpose of establishing a procedure for financing certain public and private
improvements and maintenance and services to serve the Chula Vista Bayfront Project through the
establishment of a financing district, the levy and collection of special taxes within such district
and the issuance of bonds of such district secured by such special taxes for the purpose of financing
a Convention Center Facility (as defined in Chapter 3.61), and certain other public and/or private
improvements; and
WHEREAS, the City Council of the City, has previously initiated proceedings, held a
public hearing, formed the Bayfront Project Special Tax Financing District (the “District”),
conducted an election and received a favorable vote from the qualified electors of the District,
authorizing the levy of special taxes in the District, a bonded indebtedness of the District in an
amount not to exceed $175,000,000 and an appropriations limit for the District, all as authorized
pursuant to Chapter 3.61; and
WHEREAS, the Chula Vista Bayfront Master Plan represents a long-term collaborative
effort between the City and the San Diego Unified Port District (the “Port District”) to transform
approximately 535 acres of underutilized bayfront property into a regional waterfront destination
featuring visitor-serving uses, parks, habitat restoration, infrastructure improvements, and
economic development opportunities; and
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Resolution No.
Page 2
WHEREAS, Phase 1 implementation of the Chula Vista Bayfront Master Plan includes the
development of the Gaylord Pacific Resort and Convention Center project (the “RHCC Project”),
associated public infrastructure improvements, parks, and related amenities; and
WHEREAS, in 2018, the City and Port District approved a Disposition and Development
Agreement and an initial Revenue Sharing Agreement establishing the framework for public
participation in the financing and implementation of the RHCC Project; and
WHEREAS, on June 15, 2021, the City Council, acting as the legislative body of the
District approved the principal financing and implementation documents necessary to advance the
RHCC Project, including the Project Implementation Agreement (the “PIA”); and
WHEREAS, on May 10, 2022, the City Council approved additional financing-related
actions associated with increased project construction costs and modifications to the financing
structure, including approval of additional public contributions, amendments to financing
agreements, and revisions to the Fourth Amended and Restated Revenue Sharing Agreement (the
“Revenue Sharing Agreement”); and
WHEREAS, the PIA was entered into by the City, the Bayfront Project Special Tax
Financing District, the Port District, the Chula Vista Bayfront Facilities Financing Authority (the
“Authority”), and RIDA Chula Vista, LLC (“RIDA”), and obligated RIDA to cause the
development and construction of the convention center and certain Phase 1A infrastructure
improvements; and
WHEREAS, the Gaylord Pacific Resort and Convention Center opened on May 15, 2025,
and the City, Port District, and RIDA continue to collaborate to finalize post-completion
administrative and financial close-out items; and
WHEREAS, as part of the financing framework for the bonds issued by the Authority on
May 26, 2022, the Authority Indenture of Trust established an Authority Surplus Fund to hold
certain residual project revenues; and
WHEREAS, the Authority Indenture of Trust provisions restrict the Authority’s ability to
access surplus funds for reimbursement purposes contemplated under the Revenue Sharing
Agreement between the City and the Port District; and
WHEREAS, the City and Port District anticipated the availability of these reimbursements
for Bayfront-related expenditures and incorporated the projected reimbursements into their
respective financial planning and budgets; and
WHEREAS, the proposed First Amendment to the PIA revises Sections 9.2.1.5(c) and
9.5.1 to allow the Authority to transfer a portion of the funds held in the Authority Surplus Fund
for use in accordance with the Revenue Sharing Agreement, provided that the balance remaining
in the Authority Surplus Fund is at least $3,000,000, or a lesser amount with the consent of the
Developer; and
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Resolution No.
Page 3
WHEREAS, the proposed First Amendment preserves the original intent of maintaining
sufficient funds to satisfy any remaining Developer-related obligations while allowing transfers
from the Authority Surplus Fund for lawful purposes permitted under the Authority Indenture of
Trust and Fourth Amended and Restated Revenue Sharing Agreement; and
WHEREAS, approval of the First Amendment will allow distributions from the Authority
Surplus Fund that may reimburse the City’s General Fund consistent with the Revenue Sharing
Agreement, including reimbursement for an amount equivalent to 73.6% of the cost of Bayfront
Fire Station operations; and
WHEREAS, the Project has been reviewed for compliance with the California
Environmental Quality Act (“CEQA”), and it has been determined that the Project was adequately
covered in the previously certified Final Environmental Impact Report (“FEIR”) for the Bayfront
Master Plan and Port Mast Plan Amendment (UPD #83356-EIR-658; SCH No. 2005081077;
certified by City Council Resolution No. 2010-113 on May 18, 2010).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
acting as the legislative body of the Bayfront Project Special Tax Financing District, that it
approves the First Amendment to Project Implementation Agreement, between the City, Bayfront
Project Special Tax Financing District, The San Diego Unified Port District, The Chula Vista
Bayfront Facilities Financing Authority, and RIDA Chula Vista, 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 Authorized
Officers and other officers, employees and agents of the City, acting for and in the name and on
behalf of the District to execute same.
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
Deputy City Manager City Attorney
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4934-9930-6630/024036-0079
US-DOCS\170582605.1
FIRST AMENDMENT TO PROJECT IMPLEMENTATION AGREEMENT
by and among
THE CITY OF CHULA VISTA,
a California charter city and municipal corporation,
THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT,
a financing district,
THE SAN DIEGO UNIFIED PORT DISTRICT,
a public corporation,
THE CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY,
a joint exercise of powers entity,
and
RIDA CHULA VISTA, LLC,
a Delaware limited liability company
dated as of ___________, 2026
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4934-9930-6630/024036-0079
US-DOCS\170582605.1
THIS FIRST AMENDMENT TO PROJECT IMPLEMENTATION AGREEMENT
(“Amendment No. 1”), is entered into as of ___________, 2026 (the “Date of Agreement”) by and
among the City of Chula Vista, a chartered municipal corporation (“City”), the Bayfront Project Special
Tax Financing District, a financing district established and existing pursuant to Chula Vista Municipal
Code Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance (the
“Financing District”), the San Diego Unified Port District, a public corporation (the “Port District”),
the Chula Vista Bayfront Facilities Financing Authority, a joint exercise of powers entity created by
the City and the Port District pursuant to the Joint Exercise of Powers Act (the “Authority”), and RIDA
Chula Vista, LLC, a Delaware limited liability company (the “Developer”) (collectively, the “Parties”
and, individually, a “Party”).
This Amendment No. 1 amends that certain Project Implementation Agreement, dated as of
May 26, 2022 (the “Project Implementation Agreement”), by and among the City, the Financing
District, the Port District, the Authority, and the Developer. Capitalized terms used in this Amendment
No. 1 and not otherwise defined herein have the meanings given such terms in the Project
Implementation Agreement, including the Definitions Addendum thereto.
RECITALS:
WHEREAS, the Parties entered into the Project Implementation Agreement in order to provide
for the development of certain public capital improvements referred to therein as the Convention
Center, the Developer’s Phase 1A Infrastructure Improvements, and the Remaining Phase 1A
Infrastructure Improvements.
WHEREAS, on May 26, 2022, the Authority issued its Authority Taxable Bonds and its
Authority Tax-Exempt Bonds pursuant to the Authority Indenture.
WHEREAS, pursuant to the Authority Indenture, certain moneys are on deposit, and additional
moneys are to be deposited from time to time, in funds and accounts maintained under the Authority
Indenture, including the Authority Existing Revenues Account and the Authority Surplus Fund (as such
terms are defined in the Authority Indenture).
WHEREAS, Sections 9.5 and 9.5.1 of the Project Implementation Agreement provide that,
prior to Full Payment, the Authority shall not direct the Trustee to transfer moneys out of the Authority
Surplus Fund.
WHEREAS, on or about March 4, 2026, RIDA provided notice to the Port District, the City,
the Financing District and the Authority (collectively, the “Public Entities”) stating that RIDA had
determined that the conditions for Acceptance of Developer’s Phase 1A Infrastructure Improvements
have been satisfied (other than the condition set forth in Section 10.1.2 of the Project Implementation
Agreement, which the City, the Port District and the Authority confirmed was satisfied in a letter dated
March 18, 2026) and requesting confirmation of the foregoing from the applicable Public Entities.
WHEREAS, in a letter dated March 18, 2026, the Authority confirmed that the Convention
Center is Complete and acknowledged its Acceptance of the Convention Center in accordance with
Section 10.2 of the Project Implementation Agreement.
WHEREAS, the Parties now desire to amend the Project Implementation Agreement to permit
the Authority to withdraw moneys from the Authority Surplus Fund, subject to certain limitations
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described herein, and the Parties further wish to confirm the City and the Port District’s Acceptance of
Developer’s Phase 1A Infrastructure Improvements in accordance with Section 10.1.2 of the Project
Implementation Agreement.
AGREEMENT:
In consideration of the mutual promises and covenants set forth herein, and for other
consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree that the
foregoing recitals are true and correct and further make the agreements set forth below.
Section 1. Amendment to Section 9.2.1.5(c) of the Project Implementation Agreement to
allow transfers from Authority Surplus Fund prior to Full Payment. The Project Implementation
Agreement is hereby amended by amending, replacing, and superseding subsection (c) of Section
9.2.1.5 in its entirety with the following:
“c. Until Full Payment or, with respect to the Authority Surplus Fund, except as
provided in Section 9.5.1, the Authority shall (a) neither direct nor authorize the Trustee to
transfer amounts out of the 2022A Construction Account or the Authority Surplus Fund for any
purpose other than to Developer for payment of the Convention Center Contract Sum pursuant
to Section 9.2 of this Agreement, interest due to Developer pursuant to Sections 9.2.3 and
9.2.4.2(b) of this Agreement, and amounts to be paid to Developer pursuant to Section 5.1.3,
and (b) direct or authorize the Trustee to transfer amounts out of the 2022A Construction
Account or the Authority Surplus Fund only to the account or accounts designated by
Developer in writing.”
Section 2. Amendment to Section 9.5.1 of the Project Implementation Agreement to
allow transfers from Authority Surplus Fund prior to Full Payment . The Project Implementation
Agreement is hereby amended by amending, replacing, and superseding Section 9.5.1 in its entirety
with the following:
“9.5.1. The Authority shall not deliver a Request described in the last sentence
of Section 4.4 of the Indenture for transfers out of the Authority Surplus Fund for
purposes other than payments to Developer pursuant to Sections 5.1.3 and 9.2 unless
immediately following such transfer the balance in the Authority Surplus Fund is at
least $3,000,000 (or a lesser amount with the consent of the Developer). For the
avoidance of doubt, so long as at least $3,000,000 will be on deposit in the Authority
Surplus Fund immediately following a transfer, the Authority may deliver a Request to
the Trustee directing the Trustee to transfer moneys out of the Authority Surplus Fund
at any time and from time to time, to any fund or account directed by the Authority,
and for any purpose.”
Section 3. Acceptance of Developer’s Phase 1A Infrastructure. The City and the Port
District hereby confirm Acceptance of Developer’s Phase 1A Infrastructure Improvements in
accordance with Section 10.1.2 of the Project Implementation Agreement.
Section 4. Administrative Agent Consent. The prior written consent of the Administrative
Agent to this Amendment No. 1 has been obtained and is attached hereto as required by Sections 5.14
and 6.06 of the Bond Purchase Agreement.
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Section 5. Counterparts. This Amendment No. 1 may be executed in counterparts, each
of which shall be deemed an original.
Section 6. Interpretation of Agreement. Captions used in this Amendment No. 1 are for
convenience of reference only and shall not affect the interpretation or meaning of this Amendment
No. 1 or the Acquisition Agreement.
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IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 as of the day and
year first-above written.
CITY OF CHULA VISTA, a California charter
city and municipal corporation
By:
Tiffany Allen, City Manager
APPROVED AS TO FORM:
By:
Marco A. Verdugo, City Attorney
SAN DIEGO UNIFIED PORT DISTRICT,
a public corporation
By:
Scott Chadwick,
President & Chief Executive Officer
APPROVED AS TO FORM AND LEGALITY:
By:
Thomas A. Russell, General Counsel
[Signatures continue on following page]
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[Signatures continued from previous page]
BAYFRONT PROJECT SPECIAL TAX
FINANCING DISTRICT
By:
Tiffany Allen, City Manager
APPROVED AS TO FORM:
By:
Marco A. Verdugo, City Attorney
CHULA VISTA BAYFRONT FACILITIES
FINANCING AUTHORITY, a joint exercise of
powers authority
By:
Scott Chadwick, Executive Director
APPROVED AS TO FORM AND LEGALITY:
By:
Co-Counsel, Thomas A. Russell, General
Counsel of the San Diego Unified Port
District
By:
Co-Counsel, Marco A. Verdugo, City
Attorney of the City of Chula Vista
[Signatures continue on following page]
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[Signatures continue from previous page]
DEVELOPER
RIDA CHULA VISTA, LLC,
a Delaware limited liability company
By:*
Ira Mitzner
President
California Contractor License Number: 1039979
* Signatories to provide signature authority for signatory
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ADMINISTRATIVE AGENT CONSENT TO FIRST AMENDMENT
TO PROJECT IMPLEMENTATION AGREEMENT
Pursuant to Sections 5.14 and 6.06 of that certain Bond Purchase and Continuing Covenant
Agreement dated May 26, 2022 (the “BPCCA”), by and among the Chula Vista Bayfront Facilities
Financing Authority (the “Authority”), the Purchasers (defined therein), a nd JPMorgan Chase Bank,
National Association, as Administrative Agent (the “Administrative Agent”), the prior written consent
of the Administrative Agent is required for material amendments to the Project Implementation
Agreement (defined in the BPCCA).
The Authority has requested the Administrative Agent to consent to the foregoing First
Amendment to Project Implementation Agreement dated as of _________, 2026. In connection with
such request, the undersigned hereby represents and warrants to the Authority, the City, the Financing
District, the Port District, and the Developer as follows:
1. He(she) is a duly authorized officer of the Administrative Agent, qualified to execute
this Administrative Agent Consent to First Amendment to Project Implementation Agreement (this
“Consent”) on behalf of the Administrative Agent and is knowledgeable as to the matters set forth
herein.
2. The Administrative Agent hereby consents to the execution and delivery of the First
Amendment to Project Implementation Agreement in substantially the form to which this Consent is
attached.
JPMORGAN CHASE BANK, National Association,
as Administrative Agent,
By: ____________________________________
Name: ______________________________
Title: _______________________________
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PROJECT IMPLEMENTATION AGREEMENT
by and among
THE CITY OF CHULA VISTA,
a California charter city and municipal corporation,
THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT,
a financing district,
THE SAN DIEGO UNIFIED PORT DISTRICT,
a public corporation,
THE CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY
a joint exercise of powers entity,
and
RIDA CHULA VISTA, LLC
a Delaware limited liability company
Dated as of May 26, 2022
Relating to
372,562,201
CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY
REVENUE BONDS
CHULA VISTA BAYFRONT CONVENTION CENTER)
SERIES 2022A (FEDERALLY TAXABLE)
10,000,000
CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY
REVENUE BONDS
CHULA VISTA BAYFRONT PHASE 1A INFRASTRUCTURE IMPROVEMENTS)
SERIES 2022B (TAX-EXEMPT)
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LIST OF EXHIBITS
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ARTICLE I
DEFINITIONS
1.1. Definitions Addendum .............................................................................................................. 5
ARTICLE II
SUBJECT OF THE AGREEMENT GENERALLY
2.1. Developer’s Phase 1A Infrastructure Improvements................................................................. 5
2.2. Convention Center ..................................................................................................................... 9
2.3. Sweetwater Park ........................................................................................................................ 9
ARTICLE III
DURATION OF AGREEMENT
3.1. Term of Agreement ................................................................................................................. 14
ARTICLE IV
PROJECT COSTS
4.1. Phase 1A Infrastructure Improvements ................................................................................... 14
4.2. Convention Center ................................................................................................................... 15
4.3. Cost Reporting ......................................................................................................................... 15
ARTICLE V
CONSTRUCTION OF THE PROJECT AND THE REMAINING
PHASE 1A INFRASTRUCTURE IMPROVEMENTS
5.1. Construction of the Project ...................................................................................................... 16
5.2. Reserved .................................................................................................................................. 22
5.3. Reserved .................................................................................................................................. 22
5.4. Project Schedule and Schedule Updates .................................................................................. 22
5.5. Unavoidable Delay .................................................................................................................. 22
5.6. Completion Guaranty .............................................................................................................. 25
5.7. Entitlements ............................................................................................................................. 25
5.8. Energy Requirements .............................................................................................................. 27
ARTICLE VI
PROCUREMENT REQUIREMENTS AND EQUAL OPPORTUNITY
6.1. Award of Sole Source Prime Contract .................................................................................... 27
6.2. Subcontractor Bid and Award Process for the Developer’s Phase 1A Infrastructure
Improvements .......................................................................................................................... 27
6.3. Bid and Award Process for the Remaining Phase 1A Infrastructure Improvements .............. 28
6.4. The Convention Center as a Special Purpose Project.............................................................. 28
6.5. Procurement of Alterations ...................................................................................................... 28
6.6. Bid Opening and Award .......................................................................................................... 29
6.7. Authority Procurement Policy Acknowledgement .................................................................. 29
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ARTICLE VII
DESIGN AND CONSTRUCTION STANDARDS
7.1. Standard of Care ...................................................................................................................... 29
7.2. Compliance with Laws ............................................................................................................ 30
7.3. Compliance with Design and Construction Standards; Chula Vista Building Code ............... 32
7.4. Construction Period ................................................................................................................. 34
7.5. Authority Approval Not a Waiver of Obligations ................................................................... 34
ARTICLE VIII
CONSTRUCTION
8.1. Site Safety, Security ................................................................................................................ 34
8.2. Public Right-of-Way ............................................................................................................... 35
8.3. Traffic Control ......................................................................................................................... 35
8.4. Maintenance ............................................................................................................................ 35
8.5. Construction Cooperation ........................................................................................................ 36
ARTICLE IX
PAYMENT OF PROJECT COSTS
9.1. Developer’s Phase 1A Infrastructure Improvements Costs ..................................................... 36
9.2. Convention Center Costs ......................................................................................................... 44
9.3. Investment of Amounts in the Construction Fund .................................................................. 53
9.4. Calculation of Specified Default Rate ..................................................................................... 53
9.5. Redemption of Authority Bonds and Certain Amendments Prior to Full Payment ................ 53
9.6. Survival ................................................................................................................................... 55
ARTICLE X
ACCEPTANCE OF IMPROVEMENTS
10.1. Developer’s Phase 1A Infrastructure Improvements............................................................... 55
10.2. Convention Center ................................................................................................................... 56
10.3. Sweetwater Park ...................................................................................................................... 56
ARTICLE XI
WARRANTIES
11.1. Enforcement of Warranties ...................................................................................................... 57
11.2. Term of Warranties.................................................................................................................. 57
11.3. Additional Warranties ............................................................................................................. 58
ARTICLE XII
DEFECTIVE WORK
12.1. Correction, Removal, or Replacement .................................................................................... 58
12.2. Extension of Warranty ............................................................................................................. 58
12.3. Right of Authority to Correct .................................................................................................. 58
12.4. No Limitation on Other Remedies .......................................................................................... 58
12.5. Disputes ................................................................................................................................... 59
12.6. Applicability ............................................................................................................................ 59
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ARTICLE XIII
SECURITY FOR CONSTRUCTION
13.1. Bonds ....................................................................................................................................... 59
13.2. Insolvency or Bankruptcy ........................................................................................................ 60
13.3. Calling a Bond ......................................................................................................................... 60
ARTICLE XIV
INDEMNITY AND DUTY TO DEFEND
14.1. General Indemnity ................................................................................................................... 61
14.2. Damage to Other Properties .................................................................................................... 62
14.3. Hazardous Materials Indemnity .............................................................................................. 62
14.4. Illegal Discharge to Storm Drains ........................................................................................... 64
14.5. Implementation of Authority Resolution 2020-002 ................................................................ 64
14.6. Costs of Defense and Award ................................................................................................... 64
14.7. Insurance Proceeds .................................................................................................................. 65
14.8. Declarations ............................................................................................................................. 65
14.9. Survival ................................................................................................................................... 65
ARTICLE XV
INSURANCE REQUIREMENTS
15.1. Insurance Requirements .......................................................................................................... 65
15.2. Forms and Amounts of Coverage ............................................................................................ 66
15.3. General Requirements ............................................................................................................. 68
15.4. Waiver of Subrogation ............................................................................................................ 69
15.5. Authority Obligation to Maintain Insurance ........................................................................... 69
ARTICLE XVI
RECORDS AND AUDITS
16.1. Retention of Project Records ................................................................................................... 70
16.2. Audit of Records...................................................................................................................... 70
ARTICLE XVII
TITLE TO ALTERATIONS AND IMPROVEMENTS
17.1. Title to Project ......................................................................................................................... 71
17.2. Survival ................................................................................................................................... 71
ARTICLE XVIII
LIENS
18.1. No Right to Bind Port District ................................................................................................. 71
18.2. Notice of Non-Responsibility .................................................................................................. 71
18.3. Mechanics’ Liens..................................................................................................................... 72
18.4. Contest of Lien ........................................................................................................................ 72
18.5. Port District’s Right to Pay...................................................................................................... 72
18.6. Notice of Liens ........................................................................................................................ 72
18.7. Right of Entry .......................................................................................................................... 73
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ARTICLE XIX
TAXES
19.1. Reporting ................................................................................................................................. 73
19.2. Tax Claims .............................................................................................................................. 74
19.3. Property Expenses ................................................................................................................... 75
19.4. Property Tax Contest Cooperation .......................................................................................... 76
ARTICLE XX
EQUAL EMPLOYMENT OPPORTUNITY/NONDISCRIMINATION AND OFAC
20.1. Nondiscrimination ................................................................................................................... 77
20.2. Compliance with Employment and Labor Requirements........................................................ 77
20.3. OFAC Compliance .................................................................................................................. 77
ARTICLE XXI
EVENTS OF DEFAULT AND REMEDIES
21.1. Events of Default ..................................................................................................................... 78
21.2. Remedies for Events of Default .............................................................................................. 79
21.3. Sweetwater Park ...................................................................................................................... 81
21.4. Reserved .................................................................................................................................. 81
21.5. Authority Events of Default .................................................................................................... 81
21.6. Remedies for Authority Events of Default (Rent Offset) ........................................................ 82
21.7. Payment Sources for Convention Center ................................................................................ 82
ARTICLE XXII
ASSIGNMENT PARTICIPATION FEE
22.1. Assignment Participation Fee .................................................................................................. 83
22.2. Assignment and Collateral Assignment .................................................................................. 84
22.3. Non-Disturbance Agreement ................................................................................................... 85
ARTICLE XXIII
NONDISTURBANCE
23.1. Port District Nondisturbance of Lessee and Sublessee Rights under the Convention
Center Leases........................................................................................................................... 86
23.2. Authority Nondisturbance of Lessee and Sublessee Rights under the Convention Center
Leases ...................................................................................................................................... 86
ARTICLE XXIV
Operation of the Site and the Convention Center
24.1. Approved Agreements ............................................................................................................. 87
24.2. Reservations ............................................................................................................................ 87
24.3. Cooperation in connection with Condemnation ...................................................................... 89
ARTICLE XXV
AS-IS” LEASE AND WAIVERS
25.1. Developer’s Acknowledgment ................................................................................................ 89
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25.2. Only Express Written Agreements Binding ............................................................................ 90
25.3. As-Is ........................................................................................................................................ 90
25.4. Waivers, Disclaimers and Indemnity ...................................................................................... 90
25.5. Survival ................................................................................................................................... 92
ARTICLE XXVI
MISCELLANEOUS PROVISIONS
26.1. Notices ..................................................................................................................................... 92
26.2. Captions ................................................................................................................................... 94
26.3. No Merger ............................................................................................................................... 94
26.4. Recording ................................................................................................................................ 94
26.5. Port District Transfer ............................................................................................................... 94
26.6. Time of Essence ...................................................................................................................... 95
26.7. Partial Invalidity ...................................................................................................................... 95
26.8. Entire Agreement..................................................................................................................... 95
26.9. Joint and Several...................................................................................................................... 95
26.10. Developer’s Authority ............................................................................................................. 95
26.11. Interaction with Sewer Agreement .......................................................................................... 95
26.12. Resolution of Specified Disputes ............................................................................................ 96
26.13. Attorneys’ Fees ........................................................................................................................ 99
26.14. Transaction Costs .................................................................................................................... 99
26.15. Provisions Regarding Authority Operations ......................................................................... 100
26.16. Replacement Trustees ............................................................................................................ 100
26.17. Effect of Section 365(h)(1) Election ..................................................................................... 100
26.18. Financial Information Regarding Continuous Operations..................................................... 100
26.19. Governing Law ...................................................................................................................... 101
26.20. Modification .......................................................................................................................... 101
26.21. Counterparts; Electronic Signatures ...................................................................................... 102
26.22. Drafting Presumption; Review Standard ............................................................................... 102
26.23. Administrative Claims ........................................................................................................... 102
26.24. Non-liability of Public Entity Officials and Employees ........................................................ 102
26.25. Authority Executive Director; Authority Approvals and Actions ......................................... 103
26.26. Further Assurances ................................................................................................................ 103
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LIST OF EXHIBITS
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EXHIBIT A-1 LEGAL DESCRIPTION OF THE SITE ........................................................ A-1-1
EXHIBIT A-2 LEGAL DESCRIPTION OF THE GROUND LEASE PROPERTY ............ A-2-1
EXHIBIT A-3 LEGAL DESCRIPTION OF THE DEVELOPER’S PHASE 1A
INFRASTRUCTURE IMPROVEMENTS SITE ........................................... A-3-1
EXHIBIT B-1 DEPICTION OF THE SITE ............................................................................ B-1-1
EXHIBIT B-2 DEPICTION OF THE GROUND LEASE PROPERTY ................................ B-2-1
EXHIBIT B-3 DEPICTION OF THE DEVELOPER’S PHASE 1A
INFRASTRUCTURE IMPROVEMENTS SITE ............................................ B-3-1
EXHIBIT C-1 DEVELOPER’S PHASE 1A INFRASTRUCTURE IMPROVEMENTS ......... C-1
EXHIBIT C-2 SOURCES FOR DEVELOPER’S PHASE 1A INFRASTRUCTURE
IMPROVEMENTS COST.................................................................................. C-2
EXHIBIT C-3 DEVELOPER’S PHASE 1A INFRASTRUCTURE IMPROVEMENTS
BUDGET ............................................................................................................ C-3
EXHIBIT D-1-A REMAINING PHASE 1A INFRASTRUCTURE IMPROVEMENTS
SWEETWATER PARK) .............................................................................. D-1-A
EXHIBIT D-1-B SOURCES FOR REMAINING PHASE 1A INFRASTRUCTURE
IMPROVEMENTS (SWEETWATER PARK) .............................................. D-1-B
EXHIBIT D-1-C ENGINEERING BUDGET FOR SWEETWATER PARK ........................... D-1-C
EXHIBIT E CONSTRUCTION REQUIREMENTS .............................................................. E-1
EXHIBIT F CONVENTION CENTER PLANS .................................................................... F-1
EXHIBIT G-1 APPROVED SUBCONTRACTOR BID AND AWARD PROCESS ........... G-1-1
EXHIBIT G-2 SUBCONTRACTOR BIDS AWARDED PRIOR TO EFFECTIVE
DATE .............................................................................................................. G-2-1
EXHIBIT G-3 APPROVED CONSTRUCTION CONTRACTS ............................................... G-3
EXHIBIT H FORM OF COMPLETION GUARANTY ......................................................... H-1
EXHIBIT I REAL ESTATE AGREEMENTS ....................................................................... I-1
EXHIBIT J TOTAL CONVENTION CENTER DEVELOPMENT FEE .............................. J-1
EXHIBIT K-1 DEVELOPER’S PHASE 1A PAYMENT REQUEST ................................... K-1-1
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EXHIBIT K-2 FORM OF CONVENTION CENTER PAYMENT REQUEST .................... K-2-1
EXHIBIT L SOLE SOURCE SUBCONTRACT AWARD APPROVAL
DEVELOPER’S PHASE 1A INFRASTRUCTURE IMPROVEMENTS) ...... L-1
EXHIBIT M BEST QUALIFIED CONTRACTOR SUBCONTRACT AWARD
APPROVAL (DEVELOPER’S PHASE 1A INFRASTRUCTURE
IMPROVEMENTS) .......................................................................................... M-1
EXHIBIT N-1 LIST OF APPROVED ARBITRATORS ....................................................... N-1-1
EXHIBIT N-2 LIST OF APPROVED MEDIATORS ........................................................... N-2-1
EXHIBIT O ENERGY REQUIREMENTS ............................................................................ O-1
EXHIBIT P FORM OF DEVELOPER’S CONVENTION CENTER BUDGET .................. P-1
EXHIBIT Q PORT DISTRICT TRANSFER DOCUMENTS ................................................ Q-1
EXHIBIT R FORM OF MEMORANDUM OF AGREEMENT ............................................ R-1
EXHIBIT S APPROVED AGREEMENTS ........................................................................... S-1
EXHIBIT T DISTRICT DOCUMENTS ................................................................................ T-1
EXHIBIT U PRIOR AGREEMENTS ..................................................................................... U-1
EXHIBIT V-1 APPROVED DRAWINGS AND SPECIFICATIONS FOR
DEVELOPER’S PHASE 1A INFRASTRUCTURE IMPROVEMENTS ..... V-1-1
EXHIBIT V-2 APPROVED DRAWINGS AND SPECIFICATIONS FOR REMAINING
PHASE 1A INFRASTRUCTURE IMPROVEMENTS ................................. V-2-1
EXHIBIT W FORM OF EQUAL EMPLOYMENT OPPORTUNITY
CERTIFICATION ............................................................................................. W-1
EXHIBIT X-1 FORM OF EARLY WORK AGREEMENT ................................................. X-1-1
EXHIBIT X-2 REIMBURSEMENT AGREEMENT ............................................................ X-2-1
EXHIBIT X-3 SEWER AGREEMENT ................................................................................ X-3-1
EXHIBIT Y HOTEL OPERATOR NON-DISTURBANCE AGREEMENT ......................... Y-1
EXHIBIT Z CONSTRUCTION STANDARDS FLYER ....................................................... Z-1
EXHIBIT AA IN-BALANCE CERTIFICATE ...................................................................... AA-1
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PROJECT IMPLEMENTATION AGREEMENT
BY AND AMONG
THE CITY OF CHULA VISTA, THE BAYFRONT PROJECT SPECIAL TAX FINANCING
DISTRICT, THE SAN DIEGO UNIFIED PORT DISTRICT, THE CHULA VISTA
BAYFRONT FACILITIES FINANCING AUTHORITY, AND RIDA CHULA VISTA, LLC
This PROJECT IMPLEMENTATION AGREEMENT (“Agreement”) is entered into as of
May 26, 2022 (the “Date of Agreement”) by and among the City of Chula Vista, a chartered
municipal corporation (“City”), the Bayfront Project Special Tax Financing District, a financing
district established and existing pursuant to Chula Vista Municipal Code Chapter 3.61 Bayfront
Project Special Tax Financing District Procedural Ordinance (the “Financing District”), the San
Diego Unified Port District, a public corporation (the “Port District”), the Chula Vista Bayfront
Facilities Financing Authority (the “Authority”; and, collectively with the City, the Financing
District, and the Port District, the “Public Entities” or each separately, a “Public Entity”), a joint
exercise of powers entity created by the City and the Port District pursuant to the Joint Exercise of
Powers Act (defined herein below), and RIDA Chula Vista, LLC, a Delaware limited liability
company (together with its permitted successors and assigns, including without limitation any
Foreclosure Purchaser, the “Developer”) (collectively, the “Parties” and, individually, a “Party”),
with reference to the following Recitals:
RECITALS
A. The City and the Port District are parties to that certain Amended and Restated Joint
Exercise of Powers Agreement, dated and effective July 25, 2019 (the “JEPA Agreement”), which
amended and restated that certain Joint Exercise of Powers Agreement, dated as of May 1, 2014, by
and between the City and the Port District. The JEPA Agreement forms the Authority for the
purpose of assisting in the financing and refinancing of capital improvement projects of the City and
the Port District as permitted under the Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 of
the California Government Code (the “Joint Exercise of Powers Act”) relating to the Chula Vista
Bayfront.
B. Pursuant to a “Site Lease” dated as of the Date of Agreement (as amended, amended
and restated, supplemented, or otherwise modified from time to time, the “Site Lease”), the Port
District has leased to the Authority and the Authority has leased from Port District certain real
property described in Exhibit A-1 and depicted in Exhibit B-1 attached hereto (the “Site”), upon
which an approximately 275,000 net usable square foot convention center (the “Convention Center”
and, together with the Site, the “Facility”) will be constructed by Developer pursuant to this
Agreement and operated by Developer pursuant to the Sublease, as described in more detail below.
C. Pursuant to a “Facility Lease” dated as of the Date of Agreement (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Facility Lease”),
the Authority has in turn subleased the Site and leased the Convention Center to the City.
D. Pursuant to a “Sublease Agreement” dated as of the Date of Agreement (as
amended, amended and restated, supplemented or otherwise modified from time to time, together
with any New Sublease (as defined in the Sublease), the “Sublease”), the City has in turn subleased
the Facility to Developer. The Site Lease, Facility Lease, and Sublease are referred to collectively
herein as the “Convention Center Leases.”
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E. Port District and Developer have entered into a ground lease dated as of the Date of
Agreement (as amended, amended and restated, supplemented or otherwise modified from time to
time, the “Ground Lease”), pursuant to which the Port District has leased to Developer
approximately 19.281 acres of land located in the City of Chula Vista, California, described in
Exhibit A-2 and depicted in Exhibit B-2 attached hereto (the “Ground Lease Property”), together
with all improvements currently located on the Ground Lease Property. Pursuant to the Ground
Lease, the Developer is obligated to construct, operate and maintain (or cause to be constructed,
operated and maintained) the Resort Hotel (defined herein) and Parking Improvements (defined
herein) on the Ground Lease Property.
F. The City, the Port District, the Authority and the County of San Diego (the
County”) entered into that certain Chula Vista Bayfront Project Funding Agreement dated as of
December 13, 2019, (the “County Funding Agreement”) pursuant to which the County will assist
the City, the Port District and the Authority in financing the construction of the Phase 1A
Infrastructure Improvements by contributing the County Funds (defined in the Definitions
Addendum) as provided for in the County Funding Agreement.
G. To create a vehicle to generate special tax revenues initially equal to 5.5% of the
transient occupancy revenues collected within the CVBMP (defined below), to pay or reimburse the
cost of the Phase 1A Infrastructure Improvements (defined below) and/or to support payments with
respect to the Revenue Bonds (defined below), the City Council of the City (the “City Council”),
took certain actions under and pursuant to the powers reserved to the City under Sections 3, 5, and 7
of the Constitution and the Charter of the City, and enacted Chapter 3.61 of the Chula Vista
Municipal Code (“Chapter 3.61”) for the purpose of establishing a procedure for financing certain
public and private improvements and maintenance and services to serve development within the
boundaries of the Financing District through the establishment of the Financing District, the levy and
collection of special taxes (the “Special Tax Revenues”) therein by the Financing District and the
issuance of bonds or other indebtedness of such Financing District secured by such special taxes for
the purpose of financing the Convention Center and certain other public improvements, including the
Phase 1A Infrastructure Improvements, as described below.
H. On September 10, 2019, the City Council initiated proceedings pursuant to
Chapter 3.61 to establish the Financing District, to authorize the Financing District to finance the
purchase, construction, expansion, improvement, and rehabilitation of the Convention Center and
certain other public improvements and certain maintenance and services, to authorize the levy of a
special tax pursuant to the amended and restated rate and method of apportionment thereof to pay for
such improvements and services and to declare the necessity of the Financing District to incur an
indebtedness to contribute to the financing of such improvements.
I. On February 16, 2021, the City Council adopted a resolution declaring its intention
and initiating proceedings to make changes to the rate and method of apportionment of the Financing
District to increase the special tax rates to be levied initially on taxable property in the Financing
District, to extend the term of the special tax to June 30, 2086 and to give the City Council the ability
to lower the special tax rates in future fiscal years.
J. The City and the Port District entered into an Amended and Restated Joint
Community Facilities Agreement (Chula Vista Bayfront Project Special Tax Financing District)
effective as of February 24, 2020 (as amended, the “JCFA”) to set forth some of the essential terms
for the development, operation, maintenance, and servicing of various improvements within the
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Chula Vista Bayfront Master Plan Area (the “CVBMP”) or outside the CVBMP as further described
in the JCFA. Such essential terms included the priorities for the allocation of the Special Tax
Revenues, as such term is defined in the JCFA, and to provide that the Special Tax Revenues
dedicated to the Convention Center and the Developer’s Phase 1A Infrastructure Improvements shall
be disbursed pursuant to an agreement between the Port District, the City and/or the Authority, on the
one hand, and the Developer, the Project lenders and/or the Developer’s contractors, on the other
hand.
K. On May 20, 2020, the Authority Board adopted its Resolution 2020-007 ratifying the
final form of a procurement policy for developer-performed public improvements for the Authority
attached as Exhibit A to such resolution (the “Authority Procurement Policy”) and ratifying the
final form of Authority Resolution 2020-002 in the form presented and attached as Exhibit B to
Resolution 2020-007 (the “Authority Resolution 2020-002”) applying the Authority Procurement
Policy to the construction of developer-performed public works for the Project.
L. Pursuant to Authority Resolution 2020-002 and in accordance with Procurement
Policy Section 2.a., the Authority Board authorized the Developer to proceed with the development
and construction of the Developer’s Phase 1A Infrastructure Improvements and the Convention
Center subject to the terms, conditions, and obligations of the Authority Procurement Policy,
Authority Resolution 2020-002, all applicable Project agreements, including this Agreement, and all
applicable federal, state, and local laws and regulations.
M. The Authority, the Port District and the City have determined it to be beneficial to
have the Financing District finance certain of the Phase 1A Infrastructure Improvements in
connection with the construction of the Resort Hotel, Parking Improvements and the Convention
Center. To assist in the financing of the Convention Center and the Phase 1A Infrastructure
Improvements, the Authority has determined to issue its “Authority Taxable Bonds” and its
Authority Tax-Exempt Bonds” (together with bond or other indebtedness incurred to refinance the
Authority Taxable Bonds and/or the Authority Tax-Exempt Bonds, collectively referred to herein as
the “Authority Bonds”) pursuant to the terms of the “Authority Indenture,” as defined herein. The
Authority Bonds will be secured in part and be repaid from loan payments made by the Financing
District on the “Loan,” as defined herein, and any loan payable on a parity with the Loan, made
under the “Loan Agreement,” as defined herein, “Lease Payments,” as defined herein, payable by
the City pursuant to the Facility Lease and payments to be made by the Port District pursuant to the
Port Support Agreement. JPMorgan Chase Bank, National Association, a banking association
organized and existing under the laws of the United States, will serve as administrative agent (in
such capacity referred to herein as the “Administrative Agent”) for the purchasers of the first series
of Authority Bonds, which will be issued on the Effective Date under the Bond Purchase Agreement
defined herein).
N. Pursuant to the Sublease and this Agreement, the Developer is required to cause the
development and construction of the “Project” which consists of the Developer’s Phase 1A
Infrastructure Improvements and the Convention Center (as such terms are defined herein).
O. Certain Laws may require that certain of the Phase 1A Infrastructure Improvements
as defined herein) be constructed in connection with the construction of the Convention Center, the
Resort Hotel, and the Parking Improvements.
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P. Developer and the Public Entities desire that Developer construct the Convention
Center, and in connection with the construction of the Convention Center, the Resort Hotel, and the
Parking Improvements, construct the Developer’s Phase 1A Infrastructure Improvements on certain
real property described in Exhibit A-3 and depicted in Exhibit B-3 attached hereto (the “Developer’s
Phase 1A Infrastructure Improvements Site”, together with the Site, the “Project Site”), as set
forth in this Agreement.
Q. City, Authority and Developer have entered into that certain Chula Vista Bayfront
Project Phase 1A Early Work Implementation and Right of Entry License Agreement, dated as of
September 1, 2021 and filed in the Office of the District Clerk as Document No. 73207 (the “Early
Work Agreement”), a copy of which is attached hereto as Exhibit X-1. The Early Work Agreement
provides for the reimbursement of certain costs described therein by the Authority to the Developer.
However, City, Authority and Developer intend that such costs be reimbursed as part of the
Developer’s Phase 1A Infrastructure Improvements Costs payable hereunder to the extent such
amounts are not reimbursed under the Early Work Agreement.
R. City and Developer have entered into (i) that certain City of Chula Vista
Reimbursement Agreement to Design Specified Bayfront Infrastructure Improvements, dated as of
September 15, 2020 (the “Reimbursement Agreement”), a copy of which is attached hereto as
Exhibit X-2, and (ii) that certain City of Chula Vista Reimbursement Agreement to Construct
Specified Bayfront Sewer Improvements, dated as of September 15, 2020 (the “Sewer Agreement”),
a copy of which is attached hereto as Exhibit X-3. Each of the Reimbursement Agreement and the
Sewer Agreement provide for the reimbursement of certain costs described therein by City to
Developer, and therefore such costs are excluded from the Developer’s Phase 1A Infrastructure
Improvements Costs payable hereunder to avoid double counting.
S. The Parties desire to enter into, and Authority has required that Developer enter into,
this Agreement to establish the terms and conditions in compliance with the applicable provisions of
the Authority Procurement Policy and Authority Resolution 2020-002 pursuant to which the
Developer may develop and construct the Project and obtain payment for all of the eligible costs of
developing and constructing the Developer’s Phase 1A Infrastructure Improvements from proceeds
of the Authority Tax-Exempt Bonds and the County Funds, reimbursements pursuant to the Sewer
Agreement, and credits to the Developer pursuant to the BFDIF Program, which is on file in the
office of the City Clerk, and a portion of the overall costs of developing and constructing the
Convention Center from the proceeds of the Authority Taxable Bonds and certain amounts to be
provided by the City and Port District, all as further described herein.
T. The Parties desire to provide for the development and construction of the
Remaining Phase 1A Infrastructure Improvements” (as defined herein) by the Port District,
pursuant to the procurement rules of the Port District.
U. The Parties further desire to set forth certain provisions relating to nondisturbance,
indemnification, and other continuing covenants of the Parties relating to the Resort Hotel, Parking
Improvements, and Convention Center Project and the Phase IA Infrastructure Improvements which
shall remain in effect for the Term hereof.
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AGREEMENT
NOW THEREFORE, in consideration of the above Recitals, the covenants contained herein,
and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby
acknowledge, the Authority, the Port District, the City, the Financing District and the Developer
agree as follows:
ARTICLE I
DEFINITIONS
1.1. Definitions Addendum. Defined terms used in this Agreement and not specifically
defined herein shall have the meanings set forth in the Definitions Addendum attached hereto, which
is incorporated herein by this reference. Any reference in this Agreement to this Agreement or any
other agreement is a reference to such agreement as the same may be amended or amended and
restated from time to time.
ARTICLE II
SUBJECT OF THE AGREEMENT GENERALLY
All Exhibits attached to this Agreement are incorporated into this Agreement by this
reference.
2.1. Developer’s Phase 1A Infrastructure Improvements.
2.1.1. Access to the Developer’s Phase 1A Infrastructure Improvements Site. The
Developer Parties shall have the non-exclusive right to enter upon the Developer’s Phase 1A
Infrastructure Improvements Site in connection with the construction and development of the
Developer’s Phase 1A Infrastructure Improvements commencing on the Commencement Date and
ending on the earlier of the following dates: (x) as to each portion of the Developer’s Phase 1A
Infrastructure Improvements Site, the date on which the Developer’s Phase 1A Infrastructure
Improvements corresponding to such portion of the Developer’s Phase 1A Infrastructure
Improvements Site is Accepted, (y) the date on which this Agreement is terminated, and (z) the date
on which this Agreement expires.
2.1.2. Construction of Developer’s Phase 1A Infrastructure Improvements.
Except as expressly provided in this Agreement, Developer shall cause the development of the
Developer’s Phase 1A Infrastructure Improvements on the Developer’s Phase 1A Infrastructure
Improvements Site substantially in accordance in all material respects with the Approved Drawings
and Specifications for the development of the Developer’s Phase 1A Infrastructure Improvements
within the timeframe described in Section 5.1, in each case, in accordance with all the terms and
conditions of this Agreement. For the avoidance of doubt, Harbor Park is not included as part of the
Developer’s Phase 1A Infrastructure Improvements.
2.1.3. Complete and Functional Improvements. Developer shall provide complete
and functional Developer’s Phase 1A Infrastructure Improvements substantially in accordance in all
material respects with the Approved Drawings and Specifications. Neither recommendation of any
progress payment, nor any payment by the Authority to Developer under this Agreement, nor any use
or occupancy of the Project or any part thereof by the Authority, the City, or the Port District, nor
any failure to act, nor any review of a shop drawing or sample submittal, will constitute an approval
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by any of the Public Entities of work which is not completed by Developer substantially in
accordance with the Approved Drawings and Specifications. The foregoing shall not limit claims
pursuant to Articles XI or XII.
2.1.4. Payment of Developer’s Phase 1A Contract Sum, Reimbursements under
Sewer Agreement, Credits under BFDIF Program, and Developer’s Phase 1A Project Administration
Fee. In consideration for the Developer’s development and delivery of the Developer’s Phase 1A
Infrastructure Improvements as required by this Agreement, (a) the Authority shall pay the
Developer’s Phase 1A Contract Sum to Developer, (b) the City shall provide to Developer a credit
towards the amount payable by Developer pursuant to the BFDIF Program, as a condition of
developing the Resort Hotel, Parking Improvements, and Convention Center (as applicable), (c) the
City shall pay to Developer amounts required to be reimbursed to Developer pursuant to the Sewer
Agreement, and (d) the City shall provide payment to or credit for Developer, as applicable, in the
amount of the Developer’s Phase 1A Project Administration Fee. The Authority acknowledges and
agrees that, without limitation, all of the Public Entity’s Estimated Developer’s Phase 1A
Infrastructure Improvements Costs identified in Exhibit C-3 are Developer’s Phase 1A Infrastructure
Improvements Costs, except as noted in Exhibit C-3. The Parties acknowledge that concurrent with
requesting payment of Developer’s Phase 1A Contract Sum, Developer will identify amounts to be
paid pursuant to the Sewer Agreement and City will issue payment for same consistent with the
terms of the Sewer Reimbursement Agreement. Further, Developer will identify BFDIF credit
amounts requested with each payment request. City shall incrementally accrue BFDIF credits toward
Developer’s ultimate BFDIF obligation, subject to true-up and final calculation of credits earned and
BFDIF amounts to be paid to City. City shall pay (pursuant to the Sewer Agreement) or credit
pursuant to the BFDIF Program), as applicable, to Developer a fee (the “Developer’s Phase 1A
Project Administration Fee”) in the amount of $737,109, which shall accrue in three equal
installments of $245,703 as of the sixth, eighteenth and thirtieth months following the
Commencement Date, and shall be reflected on the Developer’s Phase 1A Payment Requests
submitted during or after the month in which such amounts have accrued; provided, that if all
Developer’s Phase 1A Infrastructure Improvements Costs have been paid to Developer prior to the
thirtieth month, then the final installment of the Developer’s Phase 1A Project Administration Fee
shall accrue on the date on which Developer submits to the Authority the final Developer’s Phase 1A
Payment Request. Each installment of the Developer’s Phase 1A Project Administration Fee shall be
paid to Developer as follows: 78% of each installment of the Developer’s Phase 1A Project
Administration Fee shall be applied as an additional credit to the Developer under the BFDIF
program and 22% of each installment of the Developer’s Phase 1A Project Administration Fee shall
be paid as an additional reimbursement to Developer under the Sewer Reimbursement Agreement.
2.1.5. Sources of Funding for Developer’s Phase 1A Infrastructure Improvements
Cost. The Parties anticipate that the sources of funding for the payment of the Developer’s Phase 1A
Infrastructure Improvements Cost are as set forth on Exhibit C-2.
2.1.6. Changes to Developer’s Phase 1A Infrastructure Improvements.
2.1.6.1. Changes Requested by Developer.
a. In accordance with the Authority Procurement Policy, any
change to the Contract Documents or the Approved Drawings and Specifications with respect to the
Developer’s Phase 1A Infrastructure Improvements shall be subject to Authority’s prior written
approval, except for changes or change orders that result in none of the following (as determined in
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Authority’s reasonable discretion): (i) any additional payment by Authority in excess of the
contingency set forth in the Developer’s Phase 1A Infrastructure Improvements Budget; (ii) any
additional maintenance or overhead costs to the Authority; (iii) any material delay to the date on
which Completion of the Developer’s Phase 1A Infrastructure Improvements occurs; (iv) any
material modifications to the design or construction of the Developer’s Phase 1A Infrastructure
Improvements nor (v) any adverse effect with respect to the Developer’s Phase 1A Infrastructure
Improvements’ compliance with Law. Authority shall provide written approval or a reasonable basis
for denial of such changes (a “Change Order Response”) within ten (10) Business Days after
Authority receives written notice thereof from Developer. If Authority does not provide a Change
Order Response within such ten (10) Business Day period, then Developer may provide written
notice thereof to Authority. If Authority does not provide a Change Order Response within two (2)
additional Business Days after receipt of such notice from Developer, then Developer shall be
entitled to an Expedited Review Process as described below. Without limitation of the foregoing,
Authority shall consider reasonably and in good faith any change to the Contract Documents or the
Approved Drawings and Specifications with respect to the Developer’s Phase 1A Infrastructure
Improvements that is proposed by Developer to address conditions affecting the Project Site that are
unknown to Developer as of the Effective Date.
b. Developer shall also be entitled to an Expedited Review
Process for any change to the Contract Documents or the Approved Drawings and Specifications
whether such change results in a change order that is subject to approval by the Authority or not) if
Developer determines in good faith that such changes or change orders may be required to Complete
the Resort Hotel, Parking Improvements, and Convention Center on or before the completion date set
forth in the then-current CPM schedule for the Resort Hotel, Parking Improvements, and Project, a
copy of which shall be provided by the Developer to the Authority.
c. Each “Expedited Review Process” shall proceed as
follows: Developer shall initiate each Expedited Review Process by sending notice to the Authority
by electronic mail to the Authority Email Addresses. Such email shall have the subject line “RHCC
Project Expedited Review Process Request” notice shall include all information necessary to enable
the Authority to make a determination of whether to approve or deny the change, change order, or
other request that is the subject of the Expedited Review Process. Within 24 Business Hours of
receipt of such emailed notice, the applicable Expedited Review Individual shall provide either an
approval, a denial, or a request for clarification and/or documentation. The response from the
Expedited Review Individual shall be provided to the Developer via email. Should the Expedited
Review Individual fail to respond within 24 Business Hours from the time the email initiating the
Expedited Review Process is sent by the Developer, the change shall be deemed disapproved.
d. In the event of a deemed disapproval under Section
2.1.6.1c, Developer may proceed in accordance with the Contract Documents and Approved
Drawings and Specifications then in existence, without the requested change, or may request
approval of an alternative change through an Expedited Review Process as described in this Section.
e. If Authority disapproves a requested change or change
order and Authority’s Change Order Response indicates that the sole reason for such disapproval is
the increased cost of the proposed change pursuant to Section 2.1.6.1(a)(i), then Developer may elect
to require Authority to approve the change; provided that the increased cost of such change will not
constitute a Developer’s Phase 1A Infrastructure Improvements Cost and Authority shall have no
obligation to pay or reimburse Developer for the cost of such change; provided, however, that if upon
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Acceptance of the Developer’s Phase 1A Infrastructure Improvements and payment of all
Developer’s Phase 1A Infrastructure Improvements Cost, the total Developer’s Phase 1A
Infrastructure Improvements Cost was less than the total original Developer’s Phase 1A
Infrastructure Improvements Budget (as revised from time to time to reflect any change order
requested by a Public Entity), the Authority shall reimburse Developer for the increased costs
associated with such change orders actually paid by Developer pursuant to this Section, without
interest, up to the amount by which the original Developer’s Phase 1A Infrastructure Improvements
Budget (as revised from time to time to reflect any change order requested by a Public Entity)
exceeds the actual final amount of the Developer’s Phase 1A Infrastructure Improvements Cost paid
to Developer. Developer shall provide written notice to Authority of its election to proceed with a
change without Authority approval pursuant to this Section 2.1.6.1e.
f. All changes and change orders requested pursuant to this
Section 2.1.6.1 shall be requested by Developer by email delivered to the Authority Email Addresses
with a subject line indicating a “Developer’s Phase 1A Infrastructure Improvements Change” is
being requested.
2.1.6.2. Changes Requested by Authority. Developer shall meet and
confer in good faith with Authority regarding, and will reasonably consider in good faith, any
changes that Authority desires to make to the Approved Drawings and Specifications with respect to
the Developer’s Phase 1A Infrastructure Improvements, and Developer shall use commercially
reasonable efforts to implement any such changes, to the extent Developer reasonably determines
that such changes result in none of the following: (i) any delay to the date on which Completion of
the Developer’s Phase 1A Infrastructure Improvements occurs; (ii) any adverse effect with respect to
the Developer’s Phase 1A Infrastructure Improvements’ compliance with Law nor (iii) any adverse
effect on the development, maintenance or operation of (including any adverse effect on the
compliance with Law by) the Convention Center or the Private Improvements (as defined in the
Ground Lease). Subject only to the following sentence, if and to the extent changes requested by the
Authority and approved by the Developer under this Section result in a net increase in the
Developer’s Phase 1A Infrastructure Improvements Costs, then the net increase in Developer’s Phase
1A Infrastructure Improvements Costs resulting from such change shall be paid as follows: (A) by
the City, if the City requested the change; (B) by the Port District, if the Port District requested the
change; and (C) by the City and Port District, equally, or in such other proportion as may be agreed
to by the City and Port District; provided that the Developer shall not be required to implement the
requested change until the Authority has confirmed to the Developer in writing which Public Entity
will be responsible for payment of such increased cost and such amounts are deposited into the
appropriate subaccounts under the Indenture pursuant to Section 2.1.6.3 below. Changes required to
comply with this Agreement, Contemporaneous Agreements, permits, the CDP, or Laws shall not be
considered requested by the Authority, the Port District, or the City under this Section 2.1.6.2.
2.1.6.3. If the City is required to contribute money to pay all or a portion
of the increased Developer’s Phase 1A Infrastructure Improvements Costs relating to a change
approved pursuant to Section 2.1.6.2, then the City shall deposit the required amount into the Phase
1A Infrastructure Improvements Subaccount of the 2022B Construction Account. If the Port District
is required to contribute money to pay all or a portion of the increased Developer’s Phase 1A
Infrastructure Improvements Costs relating to a change pursuant to Section 2.1.6.2, then the Port
District shall deposit the required amount into the Phase 1A Infrastructure Improvements Subaccount
of the 2022B Construction Account.
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2.1.6.4. Nothing in this Agreement amends or waives the regulatory
process for amending permits or plans approved by the City or the Port District, which shall be
governed by the City’s and Port District’s established entitlement and permitting processes and
applicable Laws.
2.2. Convention Center. Developer shall cause the development of the Convention Center
substantially in accordance in all material respects with the Convention Center Plans, within the
timeframe described in Section 5.1 and in accordance with all the terms and conditions of this
Agreement.
2.2.1. Complete and Functional Improvements. Developer shall provide a
complete and functional Convention Center substantially in accordance in all material respects with
the Convention Center Plans and the Convention Center Costs incurred shall not be less than the
Project Public Investment Amount.
2.2.2. Payment of Convention Center Costs. In consideration for the work
performed or caused to be performed by Developer pursuant to this Section 2.2, the Authority shall
pay the Convention Center Contract Sum to Developer pursuant to the procedures set forth in
Section 9.2.
2.3. Sweetwater Park. Port District shall Sufficiently Complete development of
Sweetwater Park. “Sufficient Completion” or “Sufficiently Complete” means that the Port District,
in its sole and good faith discretion, determines that Sweetwater Park, as developed, satisfies the
following criteria: (1) the Sweetwater Park on parcel S2 shall be open to the public and include
improvements such as landscaping, public parking lots and restrooms, which may be temporary in
nature and (2) the development within the Transition Buffer Areas and Limited Use zones of parcel
SP-1 and the fencing of the No Touch Buffer Area of parcel SP-1 shall be completed. The Transition
Buffer Areas and Limited Use zones of parcel SP-1 and the No Touch Buffer Area of parcel SP-1 are
described in the certified PMP. Port District may, in its sole and absolute discretion, further develop
Sweetwater Park following achievement of Sufficient Completion, including but not limited to the
development of additional features, elements and/or landscaping, without any obligation to the
Developer and without requiring Developer’s approval or consent.
2.3.1. Sweetwater Park Updates. Until such time as Developer exercises a
Sweetwater Park Option, Port District shall provide, not less frequently than monthly, written
updates to the Developer of the progress of the development of Sweetwater Park and shall provide
written notice to Developer when Port District determines that Sweetwater Park is Sufficiently
Complete.
2.3.2. First Sweetwater Park Option. Port District shall provide written notice to
Developer at least thirty (30) days before Port District advertises for bids for the construction of
Sweetwater Park and shall provide Developer with all Sweetwater Park Materials to the extent
available at such time. On or before 5:00 p.m. (Pacific Time) on the last day of such thirty (30) day
period (such date, the “First Sweetwater Park End Date”), Developer may, but shall not be
obligated to, exercise the option to Sufficiently Complete Sweetwater Park (the “First Sweetwater
Park Option”). If Developer exercises the First Sweetwater Park Option, then: (a) Sweetwater Park
shall thereafter be considered part of Developer’s Phase 1A Infrastructure Improvements for
purposes of this Agreement (except as otherwise set forth herein), and Developer shall expeditiously
Sufficiently Complete Sweetwater Park, and (b) subject to section 2.3.2.1, Developer’s costs to
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Sufficiently Complete Sweetwater Park shall be considered Developer’s Phase 1A Infrastructure
Improvements Costs and shall thereafter be payable in the same manner as other Developer’s
Phase 1A Infrastructure Improvements Costs.
2.3.2.1. Developer may exercise the First Sweetwater Park Option only by
giving written notice to the Port District and the Authority (which notice must be acknowledged by
the Permitted Lenders), with a copy to the Administrative Agent (“First Developer Completion
Notice”) prior to the First Sweetwater Park End Date. If Developer does not deliver the First
Developer Completion Notice prior to the First Sweetwater Park End Date, then (a) the First
Sweetwater Park Option shall terminate, and (b) the Port District shall expeditiously continue
development of the Sweetwater Park until Sufficiently Complete. Notwithstanding delivery of the
First Developer Completion Notice, Developer shall not commence any development work for
Sweetwater Park at the Remaining Phase 1A Infrastructure Improvements Site until the Developer
has the right to enter upon the Remaining Phase 1A Infrastructure Improvements Site in accordance
with Section 2.3.2.4 below. Notwithstanding the foregoing, Developer may commence any other
work for the performance of the Sweetwater Park that does not require access to the Remaining
Phase 1A Infrastructure Improvements commencing on the first calendar day after Developer
exercises the First Sweetwater Park Option. The Authority will not issue payment to Developer for
work performed on Sweetwater Park if Developer does not exercise any of the First Sweetwater Park
Option or the Second Sweetwater Park Option (as defined below). If Developer exercises the First
Sweetwater Park Option, then with respect to Sweetwater Park, Developer shall be entitled to
reimbursement only of costs incurred by Developer from and after the date the First Developer
Completion Notice is delivered to Port District.
2.3.2.2. If Developer timely delivers the First Developer Completion
Notice, then (a) Developer shall Sufficiently Complete Sweetwater Park in accordance with
Sweetwater Park Materials on or before the Outside Construction Completion Date, and (b)within
five (5) Business Days after Port District’s timely receipt of the First Developer Completion Notice,
Port District shall deliver to Developer the Sweetwater Park Materials that have not previously been
delivered to Developer. After Developer has delivered the First Developer Completion Notice, the
Port District shall reasonably cooperate with Developer, at no cost or expense to Developer, in
seeking any consent to Developer’s use of such Sweetwater Park Materials reasonably requested by
Developer from the preparer or issuer of any Sweetwater Park Materials.
2.3.2.3. [Reserved].
2.3.2.4. If Developer exercises the First Sweetwater Park Option, the
Developer Parties shall have the non-exclusive right to enter upon the Remaining Phase 1A
Infrastructure Improvements Site in connection with the construction and development of
Sweetwater Park commencing on the First Sweetwater Park End Date and ending on the earlier of
the following dates: (x) the date on which Sweetwater Park is Accepted; and (y) the date on which
this Agreement is terminated.
2.3.2.5. If Developer exercises the First Sweetwater Park Option,
Developer’s failure to Sufficiently Complete Sweetwater Park by the Original Outside Construction
Completion Date shall in no event relieve Developer of the obligation to pay Construction Late
Charges.
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2.3.3. Second Sweetwater Park Option. If Developer does not exercise the First
Sweetwater Park Option and the development of Sweetwater Park is not Sufficiently Complete on or
before the Second Sweetwater Park End Date, then Developer may, but shall not be obligated to,
exercise the option to Sufficiently Complete Sweetwater Park (the “Second Sweetwater Park
Option”; and, together with the First Sweetwater Park Option, the “Sweetwater Park Option”). If
Developer exercises the Second Sweetwater Park Option, then: (a) Sweetwater Park shall thereafter
be considered part of Developer’s Phase 1A Infrastructure Improvements for purposes of this
Agreement (except as otherwise set forth herein), and Developer shall expeditiously Sufficiently
Complete Sweetwater Park and (b) subject to Section 2.3.3.1, Developer’s costs to Sufficiently
Complete Sweetwater Park shall be considered Developer’s Phase 1A Infrastructure Improvements
Costs and shall thereafter be payable in the same manner as other Developer’s Phase 1A
Infrastructure Improvements Costs. The Second Sweetwater Park Option shall terminate upon Port
District irrevocably notifying Developer that Sweetwater Park is Sufficiently Complete.
2.3.3.1. Developer may exercise the Second Sweetwater Park Option only
by giving written notice to the Port District and the Authority (which notice must be acknowledged
by the Permitted Lenders), with a copy to the Administrative Agent (“Second Developer
Completion Notice”) within ten (10) Business Days after the Second Sweetwater Park End Date, but
not sooner than ten (10) days prior to the Second Sweetwater Park End Date. If Developer does not
deliver the Second Developer Completion Notice within the time stated in this Section 2.3.3.1, then
a) the Second Sweetwater Park Option shall terminate at 5:00 p.m. (Pacific Time) on the date that is
ten (10) Business Days after the Second Sweetwater Park End Date and Developer shall have no
further remedy against Port District with respect to the development of Sweetwater Park, and (b) the
Port District shall expeditiously continue development of Sweetwater Park until Sufficiently
Complete. Notwithstanding delivery of the Second Developer Completion Notice, Developer shall
not commence any development work for Sweetwater Park at the Remaining Phase 1A Infrastructure
Improvements Site until the Developer has the right to enter upon the Remaining Phase 1A
Infrastructure Improvements Site in accordance with Section 2.3.3.4 below. Notwithstanding the
foregoing, Developer may commence any work for the performance of the Sweetwater Park that does
not require access to the Remaining Phase 1A Infrastructure Improvements commencing on the first
calendar day after the Second Sweetwater Park End Date. The Authority will not issue payment to
Developer for work performed on Sweetwater Park if the Port District Sufficiently Completes
Sweetwater Park by the Second Sweetwater Park End Date or if Developer does not exercise any of
the Second Sweetwater Park Option or the First Sweetwater Park Option. If Developer exercises the
Second Sweetwater Park Option, then with respect to Sweetwater Park, Developer shall be entitled to
reimbursement only of costs incurred by Developer from and after Developer’s exercise of the
Second Sweetwater Park Option. Developer shall not request reimbursement for such costs until
after the Second Sweetwater Park End Date.
2.3.3.2. If Developer timely delivers the Second Developer Completion
Notice, then (a) Developer shall Sufficiently Complete Sweetwater Park in accordance with the
Sweetwater Park Materials on or before the Outside Construction Completion Date, and (b) within
five (5) Business Days after Port District’s timely receipt of the Second Developer Completion
Notice, Port District shall (i) issue a notice of termination under any outstanding Sweetwater Park
Construction Contracts and (ii) deliver to Developer the Sweetwater Park Materials that have not
previously been delivered to Developer. After the Developer has delivered the Second Developer
Completion Notice, the Port District shall reasonably cooperate with Developer, at no cost or
expense to the Developer, in seeking any consent from the preparer or issuer of any Sweetwater Park
Materials. If Port District fails to issue a notice of termination under any outstanding Sweetwater
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Park Construction Contract within five (5) Business Days after Port District’s timely receipt of the
Second Developer Completion Notice as set forth above, then Developer shall have the right to issue
such notice of termination on behalf of Port District and on Developer’s own behalf pursuant to
Section 2.3.4.2.
2.3.3.3. Prior to delivery of the Second Developer Completion Notice, but
not sooner than six (6) months prior to the Second Sweetwater Park End Date, Developer may
request, and Port District shall from time-to-time provide, within ten (10) Business Days after
Developer’s request therefor, (i) copies of the Sweetwater Park Materials, all outstanding
construction, development and design documents related to Sweetwater Park (including, without
limitation, construction contracts, pay applications and architect certifications), at Developer’s sole
cost and expense, and (ii)a written description of the work that remains uncompleted in order to
cause Sweetwater Park to be Sufficiently Complete.
2.3.3.4. If Developer exercises the Second Sweetwater Park Option, the
Developer Parties shall have the non-exclusive right to enter upon the Remaining Phase 1A
Infrastructure Improvements Site in connection with the construction and development of
Sweetwater Park commencing on the date that is the later of (a) ten (10) days after Developer
exercises the Second Sweetwater Park Option or (b) the day after the Second Sweetwater Park End
Date and ending on the earlier of the following dates: (x) the date on which Sweetwater Park is
Accepted; and (y) the date on which this Agreement is terminated.
2.3.3.5. If Developer exercises the Sweetwater Park Option, Developer’s
failure to Sufficiently Complete Sweetwater Park by the Original Outside Construction Completion
Date shall in no event relieve Developer of the obligation to pay Construction Late Charges.
2.3.3.6. Each Sweetwater Park Design Contract is hereby assigned by Port
District to Developer; provided, that such assignment shall be effective only upon Developer’s
exercise of the Second Sweetwater Park Option and only for those Sweetwater Park Contracts that
Developer accepts by notifying Port District and the counterparty to such Sweetwater Park Contract
in writing. When the Developer accepts the assignment of a Sweetwater Park Design Contract,
Developer assumes Port District’s rights and obligations under such Sweetwater Park Design
Contract, but in the case of obligations, only to the extent such obligations are to be performed after
the date Developer accepts the assignment. Port District shall not assign any Sweetwater Park
Design Contract to, or grant a security interest in any Sweetwater Park Design Contract in favor of,
any person or entity other than Developer. Port District hereby grants to Developer a security
interest in the Sweetwater Park Design Contracts to secure Port District’s obligations under the
preceding sentence of this Section 2.3.3.6, and Port District shall take such steps as may be
reasonably requested by Developer to evidence and perfect such security interest (including, without
limitation, by authorizing Developer to file a UCC-1 financing statement with respect to the
Sweetwater Park Design Contracts). Developer shall not assign its security interest in any
Sweetwater Park Design Contract, except that it may assign or collaterally assign such security
interest to a permitted assignee, or permitted collateral assignee, of this Agreement.
2.3.4. Sweetwater Park Contracts.
2.3.4.1. Port District shall include in each Sweetwater Park Design
Contract (or, to the extent that any Sweetwater Park Design Contract exists as of the Effective Date,
amend such Sweetwater Park Design Contract to include): (a) a provision that permits Port District
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or its successors or assignees) or Developer to terminate such Sweetwater Park Design Contract for
convenience upon not more than ten (10) days’ prior written notice, (b) to the extent applicable, a
provision that Developer is entitled to use any drawings, plans or specifications prepared under such
Sweetwater Park Design Contract in connection the construction or development of Sweetwater Park,
and (c) the following provision with appropriate conforming modifications: “[Contractor] consents
to the assignment of [Port District’s] rights and obligations in this [Sweetwater Park Design
Contract] by [Port District] to RIDA Chula Vista, LLC, its assigns and/or its lenders and their
respective assigns (“Developer Parties”), and agrees that the warranties and obligations hereunder
shall inure to the benefit of Developer Parties, all as if Developer Parties were a party of this
Sweetwater Park Design Contract]. Such assignment will be effective when a Developer Party
delivers to [Contractor] and [Port District] a notice accepting such assignment and assuming Port
District’s obligations under this [Sweetwater Park Design Contract] from and after the date of such
notice. From and after Contractor’s receipt of such notice, [Contractor] will treat such Developer
Party as the [Port District] under this [Sweetwater Park Design Contract].” To the extent that
Developer assumes Port District’s obligations under any Sweetwater Park Design Contract,
Developer may pay any amounts that are owing to the counterparty under such Sweetwater Park
Design Contract which result from a breach by Port District under such Sweetwater Park Design
Contract, and such payments shall constitute Developer’s Phase 1A Infrastructure Improvements
Costs. Unless Developer does not exercise the First Sweetwater Park Option prior to the First
Sweetwater Park End Date and does not exercise the Second Sweetwater Park Option prior to the
Second Sweetwater Park End Date, Port District shall neither assign nor terminate any Sweetwater
Park Design Contract without Developer’s prior written consent, which shall not be unreasonably
withheld or delayed.
2.3.4.2. Port District shall include in each Sweetwater Park Construction
Contract (or, to the extent that any Sweetwater Park Construction Contract exists as of the Effective
Date, amend such Sweetwater Park Construction Contract to include): (a) a provision that permits
Port District (or its successors or assignees) or Developer to terminate such Sweetwater Park
Construction Contract for convenience upon not more than ten (10) days’ prior written notice, and
b) the following provision with appropriate conforming modifications: “[Contractor] agrees that
RIDA Chula Vista, LLC, its assigns and/or its lenders and their respective assigns (“Developer
Parties”) shall have the right to terminate this [Sweetwater Park Construction Contract] pursuant to
cross-reference termination for convenience provision] of this Sweetwater Park Construction
Contract as if Developer Parties were a party of this [Sweetwater Park Construction Contract]. Such
termination will be effective when a Developer Party delivers to [Contractor] and [Port District] a
notice of termination pursuant to such Section. Notwithstanding anything to the contrary in this
Sweetwater Park Construction Contract], no Developer Party shall have any obligations under this
Sweetwater Park Construction Contract].”
2.3.4.3. Developer shall have no right to accept assignment of a
Sweetwater Park Design Contract or to terminate for convenience a Sweetwater Park Design
Contract or Sweetwater Park Construction Contract, unless and until Developer exercises the First
Sweetwater Park Option or the Second Sweetwater Park Option, as applicable. Developer shall
provide any notice of its acceptance of assignment or notice of termination for convenience
excluding any notice of termination for convenience after Developer’s acceptance of assignment of
the applicable contract) to the Port District and the counterparty of the respective contract within
thirty (30) days following delivery of the First Developer Completion Notice or the Second
Developer Completion Notice, as applicable.
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2.3.5. Sweetwater Park Materials. Port District shall use commercially reasonable
efforts to deliver the Sweetwater Park Materials to Developer pursuant to Section 2.3.3.3 or as soon
as practicable after Developer exercises the First Sweetwater Park Option or the Second Sweetwater
Park Option. After Developer exercise the First Sweetwater Park Option or the Second Sweetwater
Park Option, Developer shall have the right to use any and all plans, drawings and specifications that
constitute Sweetwater Park Materials for construction and development of Sweetwater Park. The
Sweetwater Park Materials (other than the Sweetwater Park Design Contracts that are assumed by
Developer) shall remain the property of the Port District, and Developer shall return or deliver all
such Sweetwater Park Materials to the Port District upon Acceptance of Sweetwater Park.
2.3.6. The Port and the Authority represent that based on a 60% Cost Estimate
prepared by KTU+A dated January 25, 2022 for the Remaining Phase 1A Improvements, which
includes a scope of work adequate for Sufficient Completion, attached hereto as Exhibit D-1-C
Engineering Budget”), as of the Date of Agreement, the Authority has identified funds as shown
on Exhibit D-1-B that cover the cost of the Engineering Budget provided as Exhibit D-1-C.
ARTICLE III
DURATION OF AGREEMENT
3.1. Term of Agreement. This Agreement shall become effective on the Effective Date,
and the term of this Agreement (the “Term”) shall extend until the earlier of (a) the termination of
this Agreement by the Public Entities according to the termination provisions herein, (b) the
termination of the Sublease according to Sections 5.1 or 5.2 of the Sublease (unless Authority
provides written notice to Developer within ten (10) Business Days after the termination of this
Agreement directing Developer to complete the Developer’s Phase 1A Infrastructure Improvements,
in which case (i) except with respect to obligations that expressly survive the termination of this
Agreement, Developer shall have no further obligations hereunder with respect to the Convention
Center and (ii) the Term shall end upon Acceptance of all Developer’s Phase 1A Infrastructure
Improvements and (if Developer has exercised a Sweetwater Park Option) the Acceptance of
Sweetwater Park, or (c) the later of (i) the termination or expiration of the Sublease and (ii) the
occurrence of the Expansion Date under and as defined in the Ground Lease. Notwithstanding the
foregoing, but subject to the next sentence of this Section 3.1, if the Sublease terminates according to
Sections 5.1 or 5.2 of the Sublease, but the Ground Lease remains in effect, then (x) Developer shall
have no further obligations hereunder with respect to the Convention Center, but this Agreement
shall otherwise remain in effect (including with respect to Developer’s Phase 1A Infrastructure
Improvements and Sweetwater Park (including with respect to the payment for each of the
foregoing)) and (y) the Term shall end upon Acceptance of all Developer’s Phase 1A Infrastructure
Improvements and (if Developer has exercised a Sweetwater Park Option) the Acceptance of
Sweetwater Park. Notwithstanding anything to the contrary herein, the Term shall not extend beyond
sixty-six (66) years from the Effective Date.
ARTICLE IV
PROJECT COSTS
4.1. Phase 1A Infrastructure Improvements. The provisions of Section 4.1.1 and each
subsection thereof shall apply only to the Developer’s Phase 1A Infrastructure Improvements.
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4.1.1. Public Entity’s Estimated Developer’s Phase 1A Infrastructure
Improvements Cost.
4.1.1.1. The aggregate Public Entity’s Estimated Developer’s Phase 1A
Infrastructure Improvements Cost is $42,301,555.00 (including contingency), as shown in
Exhibit C-3 attached hereto. Developer’s Phase 1A Infrastructure Improvements Budget as of the
Effective Date is attached as Exhibit C-3 hereto. Developer may modify from time to time the
Developer’s Phase 1A Infrastructure Improvements Budget reasonably and in good faith and shall
provide written notice of any such modification to the Public Entities. The Developer’s Phase 1A
Infrastructure Improvements Budget shall indicate the Guaranteed Maximum Price for the General
Contractor’s services, which shall not be increased unless (a) the General Contractor is entitled to an
increase under the General Contract or (b) as otherwise expressly agreed by the Authority in writing,
in the Authority’s sole and absolute discretion.
4.1.1.2. If, at any time, Developer definitively establishes that the amount
expended on the Developer’s Phase 1A Infrastructure Improvements will exceed the amount set forth
in the Developer’s Phase 1A Infrastructure Improvements Budget (including contingency amounts),
Developer shall promptly, and in any case not more than ten (10) Business Days after the Developer
definitively establishes the amount of the increase, notify the Executive Director thereof in writing.
This written notification shall include an itemized cost estimate and, to the extent feasible, a list of
recommended revisions (e.g., deductive changes) which Developer believes will bring the cost to
within the amount set forth in the Developer’s Phase 1A Infrastructure Improvements Budget. The
Authority may either: (i) approve an increase in the Developer’s Phase 1A Infrastructure
Improvements Budget (which approval shall not be unreasonably withheld, conditioned, or delayed)
or (ii) reasonably value engineer, delete or replace subcomponents of a component of the
Developer’s Phase 1A Infrastructure Improvements so that the Developer’s Phase 1A Infrastructure
Improvements can be constructed for the amount set forth in the Developer’s Phase 1A Infrastructure
Improvements Budget, but only if such modification neither has a material and adverse effect on the
design, development, or construction of the Resort Hotel, the Parking Improvements, or the Project
nor delays the Completion of the Resort Hotel, the Parking Improvements or the Project.
4.1.2. Approved Drawings and Specifications for the Developer’s Phase 1A
Infrastructure Improvements. As of the Effective Date, each of the Port District and the City has
reviewed and approved the Approved Drawings and Specifications for the Developer’s Phase 1A
Infrastructure Improvements.
4.2. Convention Center. The provisions of Section 4.2 and each subsection thereof shall
apply only to the Convention Center.
4.2.1. Estimated Convention Center Cost. The aggregate Estimated Convention
Center Cost is $366,155,925.00. The Convention Center Budget as of the Effective Date is attached
as Exhibit P hereto. Developer may modify from time to time the Convention Center Budget
reasonably and in good faith and shall provide written notice of any such modification to the Public
Entities.
4.3. Cost Reporting. Developer shall, during the Term and, with respect to each record,
for a period of seven (7) years after the date such record is created (or such longer period as
Developer may decide in its sole discretion), use commercially reasonable efforts to maintain
customary records of construction costs incurred by Developer in connection with the Project. Such
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records shall include, but are not limited to, a general ledger, vendor invoices, cancelled checks,
agreements with third-party contractors and contractor progress payment billings. Such records may
be in electronic format. Developer shall furnish to Authority an itemized statement of the
construction costs incurred and paid by Developer in connection with the Improvements, as
applicable, within thirty (30) days after Developer receives Authority’s request therefor (which
request shall not be provided to Developer until the respective Improvements have been Completed).
The statement shall be sworn to and signed, under penalty of perjury, by Developer as fairly
representing, to the best of Developer’s knowledge, the construction costs incurred and paid by
Developer. Should Developer perform any construction with its own personnel, Developer shall
during the Term and, with respect to each record, for a period of seven (7) years after the date of such
record (or such longer period as Developer may decide in its sole discretion), maintain the following
records with respect to the actual work performed by its own personnel: a payroll journal, copies of
cancelled payroll checks, and timecards or other payroll documents which show dates worked, hours
worked, and pay rates. Books and records herein required shall be maintained and made available
either at the Project Site, the Convention Center, or at such other location in San Diego County,
California as is reasonably acceptable to Authority. Authority shall have the right with 48 hours’
advanced notice and at reasonable times to examine and audit said books and records without
restriction for the purpose of determining the accuracy thereof, and the accuracy of the aforesaid
statement. In the event Developer does not make available the original books and records at the
Project Site, the Convention Center, or at such other location in San Diego County, California, then
Developer agrees to pay all expenses incurred by the Authority Parties, as applicable, in conducting
an audit at the location where said books and records are maintained. After the seven (7) year period
has expired for any record subject to this Section 4.3, Developer shall deliver the original or an
electronic copy of such record to Authority at the address set forth in Section 26.1 or such other
location designated by Authority in writing, which may include the main offices of the City;
provided, however, that Developer may elect to deliver all of the records subject to this Section 4.3
that expire in a given year at one time, in one delivery, within twelve (12) months after the end of the
applicable year.
ARTICLE V
CONSTRUCTION OF THE PROJECT AND THE REMAINING
PHASE 1A INFRASTRUCTURE IMPROVEMENTS
5.1. Construction of the Project.
5.1.1. Commencement and Completion of the Project.
5.1.1.1. Following the Commencement Date, but not later than the
Outside Construction Commencement Date, Developer shall commence the construction of the
Project. Developer shall be deemed to have commenced the construction of the Project when
Developer delivers a notice to proceed with respect to the construction of the Project to Developer’s
contractor. Thereafter, Developer shall, subject to the terms of Section 5.5, diligently proceed with
the construction of the Project to Completion, and Complete the Project by the Outside Construction
Completion Date. Without limiting the generality of the foregoing, Developer acknowledges and
agrees that the cessation of construction of the Project for more than thirty (30) consecutive days
shall, unless caused by a Force Majeure Event, be deemed a failure by Developer to diligently
proceed with the construction of the Project to Completion and shall constitute an Event of Default
under this Agreement without further notice or cure right by Developer if Developer does not resume
construction of the Project within ten (10) days after Developer receives notice thereof from
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Authority which notice shall include the following language: “FAILURE BY DEVELOPER TO
RESUME CONSTRUCTION OF THE PROJECT (AS SUCH TERM IS DEFINED IN THE
PROJECT IMPLEMENTATION AGREEMENT) WITHIN TEN (10) DAYS AFTER THE
DATE DEVELOPER RECEIVES, OR IS DEEMED TO HAVE RECEIVED, THIS NOTICE
SHALL CONSTITUTE AN EVENT OF DEFAULT UNDER THE PROJECT
IMPLEMENTATION AGREEMENT”.
5.1.1.2. The Convention Center Plans have been previously approved in
writing by Port District, Authority and City. Changes to the Convention Center Plans must be
approved by the Authority in writing, in Authority’s sole and absolute discretion, and, once
approved, shall be considered a part of the “Convention Center Plans”; provided, however,
Authority’s approval of any change in the Convention Center Plans shall not be required if: (a) such
change does not result in a use that is not a Permitted Use, (b) such change does not require
modifications to the Convention Center Plans for the structural portions of the Convention Center,
c) such change does not change the design principles of the exterior appearance of the Convention
Center (if any), as set forth in the CDP, (d) such change is in compliance with the Chula Vista
Building Code, (e) such change is in compliance with, and does not violate the provisions of, the
PMP, CDP, the EIR, CVBMP Documents and any other Laws, (f) such change does not trigger any
storm water construction BMP permit or permanent structural BMP permit or alterations to existing
permanent structural BMPs, and (g) such change does not pave any area greater than twenty-five (25)
square feet unless Developer has previously secured the approval to perform such work from all
applicable Governmental Authorities, including the Authority. Within thirty (30) days of the
Authority’s notice to Developer, Developer shall provide to Authority a reasonably detailed
explanation of all changes that Developer has made to the Convention Center Plans without the
Authority’s approval pursuant to this Section 5.1.1, including, without limitation, an explanation of
why such change did not require approval from the Authority, and copies of the revised Convention
Center Plans showing the changes, and Authority shall have thirty (30) days from the receipt of such
information to object to the changes to the Convention Center Plans as requiring the Authority’s
approval as provided in this Section 5.1.1.2. The Convention Center Plans are by this reference
made a part hereof. In the event of any inconsistency between the Convention Center Plans and the
terms and conditions of this Agreement, the terms and conditions of this Agreement shall prevail.
5.1.1.3. In constructing the Project, Developer shall comply with all
Construction Requirements set forth in Exhibit E attached hereto and all Laws, including, without
limitation, the PMP requirements, mitigation measures or conditions of approval under the terms of
any of the approvals by any Governmental Authority for the Project, including any CDPs applicable
to the Project Site or the use or development thereof and any conditions of approval or mitigation
measures or Project changes pursuant to any environmental review under CEQA.
5.1.2. Initial Public Financing Payments; Construction Late Charge. Developer
hereby acknowledges that if the Resort Hotel, Parking Improvements, and Convention Center are not
Complete by the Original Outside Construction Completion Date, Authority Parties, Port District
Parties, Financing District Parties, and City Parties will incur costs not contemplated by this
Agreement, the Ground Lease and the Convention Center Leases. Accordingly, in the event
Developer does not Complete the Resort Hotel, Parking Improvements, and Convention Center by
the Original Outside Construction Completion Date, then, beginning with the first month following
the Original Outside Construction Completion Date, and monthly thereafter until the Resort Hotel,
Parking Improvements, and Convention Center are Complete, the Developer shall, on or before the
first day of each such month, pay to the Trustee, as assignee of Authority under the Authority
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Indenture, the payments (collectively referred to as the “DPFP”) based on the formula set forth
below (collectively, “Construction Late Charges”). The Parties further agree that the Construction
Late Charges apply whether or not Developer receives notice of its failure to Complete the
Convention Center, Resort Hotel, or Parking Improvements, and that said Construction Late Charges
are appropriate to compensate the City, Port District, Financing District, and Authority, and are the
sole compensation and remedy of the Public Entities, for the Developer’s failure to construct the
Resort Hotel, Convention Center, Developer’s Phase 1A Infrastructure Improvements, or the Parking
Improvements by the Original Outside Construction Completion Date, including any loss resulting
from the loss of revenues that the Authority Parties, the Port District Parties, the Financing District
Parties and the City Parties would have received if the Resort Hotel, Convention Center, Parking
Improvements, and Developer’s Phase 1A Infrastructure Improvements had been Completed by the
Original Outside Construction Completion Date. Notwithstanding the preceding sentence, Developer
acknowledges and agrees that, as and to the extent provided in the next sentence, there will be an
Event of Default for the failure to Complete the Convention Center if (a) Developer fails to Complete
the Convention Center by the date that is three hundred sixty-five (365) days after the Outside
Construction Completion Date (the “Extended Construction Period Deadline”) (as extended as a
result of a Force Majeure Event or Municipal Breach) (“Late Completion”) and (b) either (i) without
limiting Section 21.1.1, Developer does not pay the Construction Late Charges each month until
Completion of the Convention Center (a “Construction Late Charge Failure”) or (ii) if Developer
can reasonably Complete the Convention Center within thirty (30) days of the Extended Construction
Period Deadline, Developer does not Complete the Convention Center within such thirty (30) days,
and if the nature of the Completion of the Convention Center is such that Developer cannot
reasonably Complete the Convention Center within such thirty (30) days, Developer does not
diligently commence such cure within such thirty (30) days or thereafter fails to diligently proceed to
rectify and cure such failure (a “Completion Cure Failure”, and any Completion Cure Failure or
any Construction Late Charge Failure, a “Post-Late Completion Failure”). Developer
acknowledges and agrees that if Late Completion occurs and any Post-Late Completion Failure
occurs, then the Public Entities may declare an Event of Default for failure to Complete the
Convention Center, and such Event of Default shall constitute a cross-default under the Ground
Lease and the Sublease, if Developer does not cure its Post-Late Completion Failure within thirty
30) days of receipt of notice from the Authority, and Developer shall not be entitled to any
additional cure periods under Article XXI herein. Developer acknowledges and agrees that the
payment of Construction Late Charges does not constitute an exclusive remedy for any Event of
Default under this Agreement for failure to construct the Convention Center or the Developer’s
Phase 1A Infrastructure Improvements, Event of Default under the Sublease for failure to Complete
the Convention Center, or Event of Default under the Ground Lease for failure to Complete the
Resort Hotel and Parking Improvements. Each of the Public Entities acknowledges and agrees that if
Developer fails to Complete the Convention Center, the Resort Hotel and Parking Improvements,
Developer shall only be required to pay one set of Construction Late Charges monthly and such
Construction Late Charges shall not be doubled. Without limiting the generality of the foregoing,
Developer acknowledges and agrees that the cessation of construction of the Convention Center for
more than thirty (30) consecutive days shall, unless caused by a Force Majeure Event or Municipal
Breach, be deemed a failure by Developer to diligently proceed with the construction of the
Convention Center to Completion and shall constitute an Event of Default under this Agreement
without further notice or cure right by Developer if Developer does not resume construction of the
Convention Center within ten (10) days after Developer receives notice thereof from the Public
Entities which notice shall include the following language: “FAILURE BY DEVELOPER TO
RESUME CONSTRUCTION OF THE CONVENTION CENTER (AS SUCH TERM IS
DEFINED IN THE PROJECT IMPLEMENTATION AGREEMENT) WITHIN TEN (10)
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DAYS AFTER THE DATE DEVELOPER RECEIVES, OR IS DEEMED TO HAVE
RECEIVED, THIS NOTICE SHALL CONSTITUTE AN EVENT OF DEFAULT UNDER
THE PROJECT IMPLEMENTATION AGREEMENT”.
Calculation of DPFP Formula:
DPFP =
Example of Calculation of DPFP:
Assuming the following annual amounts:
Annual PDSO: $18,000,000
Annual EF: $4,000,000
Annual DSP: $4,000,000
DPFP =
DPFP =
DPFP = $833,333.33
For purposes of this Section 5.1.2:
District Support Payment” or “DSP” means, with respect to any Fiscal Year, the Annual
Support Payments under and as defined in the Port Support Agreement as of the Effective Date that
are due and payable during such Fiscal Year.
Existing Funds” or “EF” means, collectively, with respect to any Fiscal Year, moneys in an
amount equivalent to each of the following sources of funds described in (i), (ii), and (iii), actually
received by the Port District or the City, during such Fiscal Year:
i) the Real Estate Revenues (defined below) received by the Port District during the
preceding Fiscal Year, which Real Estate Revenues shall be subject to adjustment pursuant to Section
5.1.3 below;
ii) the TOT attributable to the RV Park Lease; and
iii) an amount equal to $986,625.00, increasing 3% on July 1 of each year, commencing
July 1, 2017, which amount is based on the payment made by the Port District to the City in Fiscal
Year 2016 pursuant to that certain Municipal Services Agreement No. 88-2012 between the Port
District and the City for the provision of Police, Fire and Emergency Medical Services.
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Real Estate Revenues” means all funds actually received by the Port District from the
following items on a yearly basis:
a) the funds actually received by the Port District from the premises that are the
subject of the real estate agreements as of the date hereof (each, the “Original Premises”) set forth
in Exhibit I (each, a “Real Estate Agreement” and collectively, the “Real Estate Agreements”);
provided, however, if any of the Real Estate Agreements are renewed, replaced, assigned, or
amended after the Effective Date but before the date on which the Support Agreement terminates in
accordance with its terms, then on and after such renewal, replacement, assignment, or amendment,
as applicable, the following shall apply:
1) if the Original Premises for such Real Estate Agreement remains the
same, then the contribution of the Port District shall be the funds actually received by the Port
District from such Real Estate Agreement regardless of whether such amounts are the same as, less,
or more than previously contributed by the Port District under such Real Estate Agreement;
2) if the Original Premises for such Real Estate Agreement are decreased
either in size or configuration, then the contribution of the Port District shall be the funds actually
received by the Port District from such Real Estate Agreement regardless of whether such amounts
are the same as, less, or more than previously contributed by the Port District under such Real Estate
Agreement; provided, that if the portion of the Original Premises excluded from the aforementioned
agreement (“Remainder Parcel”) becomes the subject of a future Real Estate Agreement, then the
contribution of the Port District shall be the funds actually received by the Port District and allocable
to such Remainder Parcel pursuant to the Support Agreement;
3) if the Original Premises for such Real Estate Agreement are increased
either in size or configuration to include additional premises outside of the Original Premises
boundaries of such Real Estate Agreement and such additional premises are immediately adjoining
the original premises or are located in the City of Chula Vista (each a “Modified Boundary
Agreement”), then the contribution of the Port District shall be the funds actually received by the
Port District and allocable to the Original Premises for such Real Estate Agreement based on a
formula calculated by multiplying the total amount of the funds actually received from the Port
District for such Real Estate Agreement in the immediately prior year by a fraction, the numerator of
which shall be an amount equal to the Modified Boundary Agreement premises still within the
original premises boundary, and the denominator of which shall be the total premises area of the
Modified Boundary Agreement as modified. For example, if the Original Premises of a Real Estate
Agreement encompasses 5.0 acres, and the Modified Boundary Agreement includes 4.0 acres of the
Original Premises, and adds 6.0 acres of premises outside the original premises, then forty percent
40%) of the funds actually received by the Port District under the Modified Boundary Agreement
shall be contributed by the Port District for purposes of this Section; the City and the Port District
acknowledge and agree that any modification of the RV Park Lease (listed on and as defined in
Exhibit I) to include some or all of parcel S-3 shall not constitute a “Modified Boundary Agreement”
for purposes of this Section; and for any of the scenarios (1)-(3) above, if the new Real Estate
Agreement is a revenue generating agreement then the Port District may deduct from its contribution
under scenarios (1)-(3) any related out-pocket operating costs paid by the Port District to the third
parties to operate the premises.
4) Subject to paragraph (a)(3), above, and paragraph (b), below, of this
definition of “Real Estate Revenues,” for the avoidance of doubt, it is the intent of the Port District to
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contribute funds from the Original Premises derived from a Real Estate Agreement that the Port
District actually receives under such Real Estate Agreement from such Original Premises during the
term of the Support Agreement.
b) less $3,283,970, which is the actual amount of the buyout payment paid solely by the
Port District to Chula Vista Marina, LP, dba Chula Vista Marina (“RV Park Lessee”) to terminate
the lease between the RV Park Lessee and the Port District (“Net RV Park Buyout Credit”), such
amount to be amortized over a period of eight years commencing on July 1, 2018 pursuant to the Net
RV Park Buyout Credit Schedule (defined below), as such Net RV Park Buyout Credit Schedule and
its contents may be administratively modified from time to time with the mutual consent of the City
Manager of the City and the Executive Director of the Port District, without further approval of the
BPC or City Council.
Net RV Park Buyout Credit Schedule” means the following schedule:
Fiscal Year (FY) RV Park Buyout Credit Cumulative Credit
Public Debt Service Obligation” or “PDSO” means, for any year, the actual amount
payable by the Authority during such year for principal and interest (including default interest, if
applicable) on the Authority Bonds; provided that the principal component of the PDSO for any one
year shall not include more than one thirty-fifth (1/35) of the total original principal amount of the
Authority Bonds issued on the Effective Date.
TOT” means the transient occupancy taxes levied pursuant to Chula Vista Municipal Code
Chapter 3.40, attributable to the RV Park Lease.
The amount of the DPFP will be reduced to the extent the DPFP would otherwise be
increased solely because Port District or the City fails to use commercially reasonable efforts to
ensure the receipt of amounts that, if received by the City or the Port District, would be Existing
Revenues and are due and payable to the City or the Port District.
5.1.3. True-Up Payments. Because the actual amounts of the DPFP may not be
known when Developer is required to pay Construction Late Charges (since some of the amounts
used in the calculation of DPFP will not be known), the Authority shall promptly, after any request
by Developer, notify Developer of the reasonably expected amount of the applicable DPFP and
Developer shall initially pay Construction Late Charges based on such estimated amounts. Within
sixty (60) days after the end of each Fiscal Year with respect to which Developer was required to pay
Construction Late Charges pursuant to this Section 5.1, the Port District shall reasonably determine
the actual Real Estate Revenues it received during such Fiscal Year and present such amount,
together with reasonable supporting documentation, to Developer for Developer’s review and
approval. If the amount of such actual Real Estate Revenues received by the Port District exceeds
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the Real Estate Revenues as calculated based on the preceding Fiscal Year, then the Authority shall
make a true-up payment to Developer for the difference within twenty (20) Business Days from the
Revenue Fund maintained under the Authority Indenture. If the amount of such Real Estate
Revenues calculated by the Port District based on the preceding Fiscal Year exceeds the amount of
such actual Real Estate Revenues received by the Port District, then Developer shall make a true-up
payment to the Trustee as assignee of the Authority for deposit into the Revenue Fund under the
Authority Indenture for the difference within twenty (20) Business Days of a notice of deficiency.
5.2. Reserved.
5.3. Reserved.
5.4. Project Schedule and Schedule Updates.
5.4.1. Planned Completion Date. For the Developer’s Phase 1A Infrastructure
Improvements, the Project schedule shall indicate a planned completion date following the
Commencement Date that is not later than the Outside Construction Completion Date (the “Planned
Completion Date”). The Planned Completion Date may be extended in the event of a delay,
provided that Developer duly requests a time extension in accordance with this Section 5.4 and such
extension is authorized under this Article V. Any such schedule is for information purposes only.
5.4.2. Critical Path Method Schedules. Developer shall require that MMJV
maintain a detailed, computer-generated, logic-driven, precedence style critical path method
CPM”) schedule that is prepared with Primavera or other software used by MMJV and that
includes all of MMJV’s work related to the Project. Developer shall submit to the Authority a
courtesy copy of all schedules and schedule updates that Developer receives from MMJV. If
requested by the Authority, Developer shall deliver digital copies of any schedules in native
computer file format.
5.4.3. Schedule Updates. Developer shall provide to Authority regular schedule
updates not less than monthly, which shall include: actual start dates; actual completion dates; and
remaining duration of activities in progress. Developer shall promptly notify the Authority of any
changes to the schedule.
5.5. Unavoidable Delay. Each of the Developer and the Port District shall be entitled to
an extension of the date of the performance of any obligation required of such Party under this
Agreement upon the occurrence of a Force Majeure Event as and to the extent set forth in this
Section 5.5. For the avoidance of doubt, the Hotel Ground Lease shall control as to a Force Majeure
Event with respect to the Resort Hotel and Parking Improvements.
a) Definition. The term “Force Majeure Event” means the occurrence of any
of the following events (and the actual collateral effects of such event), individually or in any
combination, to the extent that (x) such event is beyond the reasonable control of the Developer, the
Port District, the City, the Financing District, or the Authority, as applicable, that is asserting that a
Force Majeure Event has occurred (the “Force Majeure Party”) and (y) such event and/or such
actual collateral effect prevents such Force Majeure Party from the performance of its obligations
under this Agreement and is approved by the Authority pursuant to Section 5.5(e) below:
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i) A strike, or similar labor disturbances causing a work stoppage,
excluding any such strike or work stoppage that could have been avoided had the Force Majeure
Party (or Hotel Operator or a Developer Party, in the case of the Project), complied with Laws or
labor agreements with respect to the Project, if any.
ii) Hurricanes, typhoons, tornadoes, cyclones, other severe storms,
lightning or floods.
iii) Days of precipitation or high winds in any month in excess of ten (10)
year average for the area within City’s jurisdiction.
iv) An earthquake, volcanic eruptions, explosions, disease, epidemics or
other natural disaster.
v) Fires (including wildfires).
vi) Inability to procure labor, utilities, equipment, materials, or supplies
in the open market due to lack of availability (but, in each case, not attributable to a mere increase in
price or the Force Majeure Party’s (or Hotel Operator or a Developer Party, in the case of the Project)
acts or failure to act).
vii) Acts of war or armed conflict, insurrections, riots, and acts of
terrorism (including hijacking, chemical or biological events, nuclear events, disease related events,
arson or bombing) or, with respect to any of the foregoing, any threat thereof.
viii) Extraordinary delays in the issuance of any approvals or
authorizations from any Governmental Authority (excluding any non-regulatory approvals provided
under the terms of this Agreement by the Port District, the Authority or the City) that is necessary to
proceed with development or operation of the Convention Center, Developer’s Phase 1A
Infrastructure Improvements or the Remaining Phase 1A Infrastructure Improvements, as applicable
provided that Developer has timely and properly filed all applications, submitted all required
documents and fees and taken all other reasonable actions that are necessary to obtain such approvals
or authorizations and that the Force Majeure Party (or Hotel Operator or a Developer Party) is not
responsible for the delay in the issuance of such approvals or authorizations by such party’s own
actions or inactions). For purposes of this paragraph, (A) “extraordinary delays” with respect to City
regulatory approvals or authorizations that are subject to the Staffing and Processing Agreement shall
mean delays in City processing actions or approvals that exceed 150% of the time periods for City
actions under the terms of the Staffing and Processing Agreement, excluding any such delays caused
by Developer’s own actions or inactions thereunder, and (B) “extraordinary delays” with respect to
any other approval or authorization from any Governmental Authority shall mean delays beyond the
reasonably expected time period for such approval or authorization which reasonably expected time
period shall include customary or reasonably foreseeable delays in obtaining such approvals.
ix) An act of God.
x) Embargoes or blockades.
xi) Pre-Existing Hazardous Material (that is not the result of Material
Exacerbation).
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xii) Closures or work stoppages ordered by any Governmental Authority
that do not arise from a breach of this Agreement or the Sublease or misconduct by Force Majeure
Party (or Hotel Operator or a Developer Party, in the case of the Project).
b) Calculation of Delay. Actual delays resulting from the occurrence of one or
more Force Majeure Events occurring concurrently shall be calculated concurrently and not
consecutively.
c) Exclusions. For purposes of this Section 5.5, a Force Majeure Event shall not
include adverse general economic or market conditions not caused by any of the events described in
5.5(a)(i) through (xii) above.
d) Payment Obligations. In no event will a Force Majeure Event excuse the
payment of Project Costs due under this Agreement.
e) Notice and Acceptance Requirement. After the Force Majeure Party learns of
any Force Majeure Event, such Force Majeure Party shall endeavor to provide prompt (under the
circumstances) informal written notice to the Executive Director and Authority staff working in the
field that a Force Majeure Event has commenced, with a formal written notice to follow as described
below. The Force Majeure Party shall notify the Authority, the Administrative Agent, and the other
Parties in writing within ten (10) Business Days after the Force Majeure Party learns of, and in no
event later than thirty (30) days after commencement of a Force Majeure Event. Such notice (the
Initial Force Majeure Notice”) must be made in good faith and describe the Force Majeure Event
creating delay, why such delay is occurring, the estimated expected duration of such delay, and the
commercially reasonable efforts that the Force Majeure Party is taking to minimize the period of
delay. Commencing on the date that is thirty (30) days after the date of the Initial Force Majeure
Notice and for so long as the Force Majeure Event or the actual collateral effects of such Force
Majeure Event exist (whichever is later), the Force Majeure Party shall provide to the Authority, the
Administrative Agent, and the other Parties monthly written updates on the estimated expected
duration of such delay and the commercially reasonable efforts that the Force Majeure Party is taking
to minimize the period of delay. Within thirty (30) days after the Force Majeure Event or the actual
collateral effects of such Force Majeure Event cease to exist (whichever is later), the Force Majeure
Party shall notify the Authority, the Administrative Agent, and the other Parties in writing that the
Force Majeure Event and the actual collateral effects of such Force Majeure Event, as applicable,
have ceased to exist and of the number of days by which Force Majeure Event (including the actual
collateral effects of such Force Majeure Event) has delayed the Force Majeure Party’s construction
of the Project (or, with respect to the Port District, the Remaining Phase 1A Infrastructure
Improvements) or Completion (the “Force Majeure Notice”). Within thirty (30) days after
Authority’s receipt of the Force Majeure Notice, the Authority shall provide notice to the Force
Majeure Party and the other Parties (“Force Majeure Response”) that either the Authority
a) requires additional information to make a determination regarding the Force Majeure Party’s
assertion of the existence of a Force Majeure Event or the duration of the delay caused by the Force
Majeure Event or the actual collateral effects of such Force Majeure Event, (b) approves the Force
Majeure Notice, or (c) denies some or all of the Force Majeure Notice. The Authority’s approval or
denial of the Force Majeure Notice shall be in the Authority’s reasonable discretion. If the Authority
denies some or all of the Force Majeure Notice, the Authority and the Force Majeure Party will meet
and confer in good faith within ten (10) days after the Authority’s delivery of the Force Majeure
Response to attempt to reach a mutually acceptable modification to the Force Majeure Notice that
will result in the Authority approving the Force Majeure Notice as modified (“Meet & Confer
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Period”). If the Authority and the Force Majeure Party do not agree on a modification to the Force
Majeure Notice during the Meet & Confer Period, the Force Majeure Party may elect to withdraw the
Force Majeure Notice and if the Force Majeure Party does not withdraw the Force Majeure Notice,
the Authority shall present the Force Majeure Notice to the Authority Board for its consideration to
either approve or deny the Force Majeure Notice at a regularly scheduled meeting that shall take
place within sixty (60) days after the expiration of the Meet & Confer Period. If the Authority Board
denies the Force Majeure Notice, then the dispute shall be resolved by a court of competent
jurisdiction. If a court of competent jurisdiction determines in a final and non-appealable decision
that the putative Force Majeure Event that was described in such Force Majeure Notice did not
constitute a Force Majeure Event, the duration of such delay in the construction of the Project (or,
with respect to the Port District, the Remaining Phase 1A Infrastructure Improvements) or
Completion specified therein was not reasonable, or the efforts that the Force Majeure Party took to
minimize the period of delay were not commercially reasonable, then, at the Authority’s sole and
exclusive remedy for the Force Majeure Party’s failure to perform any obligation under this
Agreement from which the Force Majeure Party claimed to be excused as a result of such Force
Majeure Event, but was not excused, the Force Majeure Party shall make the Authority whole for any
loss that the Authority suffered as a result of such failure.
5.6. Completion Guaranty. On or before the Effective Date, Developer shall cause each
Completion Guarantor (as defined in each Completion Guaranty) to execute and deliver to Authority,
and maintain in effect in accordance with its terms, a Completion Guaranty substantially in the form
attached hereto as Exhibit H and incorporated herein by reference (“Completion Guaranty”), with
any deviations from such form being reasonably acceptable to Authority, City, Port District, the
Administrative Agent, and Developer.
5.7. Entitlements.
5.7.1. Entitlement Costs. If any discretionary approval, permit or entitlement,
including, without limitation, environmental analysis under CEQA or the National Environmental
Policy Act, the PMP, a Port Master Plan Amendment (“PMPA”), stormwater permits, a CDP and/or
a Coastal Act exclusion (collectively, “Discretionary Entitlement”), are necessary, in Port District’s
sole and absolute determination, in connection with any Improvements or Alterations, demolition
work, remediation work or other projects undertaken by Developer on or at the Project Site or the
Improvements (each of the foregoing for which a Discretionary Entitlement is required, the
Discretionary Project”), then Developer shall enter into agreements, consistent with the Port
District’s applicable standard practices at that time (if any), with third-party experts, professionals
and consultants to prepare reports and other materials (“Consultant Services”) that are required to
process the Discretionary Project and for the Port District or any other relevant Governmental
Authority to consider the Discretionary Entitlement or Discretionary Project. Developer shall be
directly responsible for the costs of the Consultant Services. Developer shall reimburse Port District
pursuant to the Reimbursement Procedure for all reasonable costs and expenses incurred by Port
District in connection with preparing, processing, considering and approving any Discretionary
Project, any Discretionary Entitlement or any appeal of any CDP or Coastal Act exclusion to the
CCC. If Developer fails to reimburse Port District for such costs or expenses pursuant to the
Reimbursement Procedure, then, in addition to any other remedies that Port District may have,
following three (3) Business Days’ prior written notice to Developer, Port District may, at its
reasonable discretion, discontinue the preparing, processing, considering or approving of such
Discretionary Project, Discretionary Entitlement or such appeal of a CDP or Coastal Act exclusion to
the CCC, as applicable, until Developer reimburses Port District, and Developer shall be responsible
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for any costs and expenses incurred by Port District related to such discontinuance and if such failure
continues for seven (7) additional Business Days after written notice from Port District to Developer,
then such failure shall be an Event of Default. Nothing herein shall obligate Port District to seek,
process or obtain any Discretionary Entitlement or any other third-party Governmental Authority
approval for a Discretionary Project for the benefit of Developer, and Port District makes no
warranty or representation to Developer that Developer will obtain any Discretionary Entitlement or
ministerial approval. Port District shall not be required to pay any Governmental Authority fees or
costs and expenses for any Consultant Services associated with any Discretionary Entitlement or any
other third-party Governmental Authority approval for a Discretionary Project. If Developer requests
Port District’s assistance in obtaining from any third-party Governmental Authority any licenses,
approvals, notifications, registrations or permits in connection with development, use and operation
of the Project Site and the Improvements, including the construction of the Initial Project
Improvements, Port District will consider Developer’s request and inform Developer within thirty
30) days whether it will agree to reasonably assist Developer.
5.7.2. Entitlements Indemnity. Without limitation of Developer’s other
obligations under this Agreement, Developer agrees, at its sole cost and expense, and with counsel
reasonably selected by the Public Entities and reasonably acceptable to Developer, to indemnify,
defend and hold harmless the Port District Parties, Authority Parties, Financing District Parties, and
the City Parties from any third-party claims, demands, actions, causes of action, suits and Related
Costs, arising out of Port District’s approval of any Discretionary Project, Discretionary Entitlement
or appeal of a CDP or Coastal Act exclusion to the CCC. Port District may, in its sole and absolute
discretion, participate in the defense of any claims, demands, actions and causes of action and suits,
and Developer shall reimburse Port District for all reasonable costs that are incurred by Port District
in connection therewith, including, without limitation, reimbursement for attorneys’ fees, experts’
fees and other costs. Port District’s participation in such defense shall not relieve Developer of any of
its obligations under this Section 5.7.2. The foregoing indemnity obligations of Developer are in
addition to, and not in limitation of, any other indemnity obligations of Developer contained in this
Agreement, the Ground Lease, and the Sublease, and this Section 5.7.2 shall survive the expiration or
earlier termination of this Agreement and the Sublease.
5.7.3. Reservation of Discretion. Developer acknowledges and agrees that,
notwithstanding the terms and conditions of this Agreement, and the Sublease, Port District reserves
its discretion to condition, approve or disapprove any Discretionary Entitlements or Discretionary
Project, including, without limitation, adoption of any and all feasible mitigation measures,
alternatives to a Discretionary Project, including a no project alternative, and a statement of
overriding consideration, if applicable, and that nothing in this Agreement or the Sublease will be
construed as circumventing or limiting Port District’s discretion with respect to any Discretionary
Entitlement, or any Discretionary Project, including, without limitation, the exercise of eminent
domain, code enforcement and the making of findings and determinations required by Laws.
Developer acknowledges and agrees that any and all Discretionary Entitlements may be conditioned,
approved or denied by Port District, in its sole and absolute determination, and Developer accepts the
risk that Port District may deny any and all Discretionary Entitlements, and hereby waives any
claims, demands, actions, causes of action, suits against Port District for such conditions or denial.
5.7.4. Ministerial Action by Authority. At Developer’s request, the Authority will
take any reasonable and lawful ministerial action that is reasonably necessary in connection with
Discretionary Entitlement or any other third-party Governmental Authority approval for a
Discretionary Project (including, without limitation, signing any application for a Discretionary
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Entitlement in its capacity as the owner of the Convention Center, tenant under the Site Lease or
sublandlord under the Facility Lease).
5.8. Energy Requirements. Notwithstanding any other provision of this Agreement to the
contrary, the only obligations of Developer with respect to Section 15 and Exhibit 3 of the Settlement
Agreement and any indemnification obligations with respect thereto are set forth in Exhibit O
attached hereto and incorporated herein by reference and in the Ground Lease.
ARTICLE VI
PROCUREMENT REQUIREMENTS AND EQUAL OPPORTUNITY
6.1. Award of Sole Source Prime Contract. Pursuant to the findings of the Authority
Board found in Authority Resolution 2020-002, the Developer may award one or more single sole
source prime contracts to MMJV for the partial design and construction of the Project subject to the
terms and conditions of Authority Resolution 2020-002 and this Article VI of this Agreement. The
Authority has approved the final, executable construction contracts for the Convention Center and
the Developer’s Phase 1A Infrastructure Improvements listed on Exhibit G-3.
6.2. Subcontractor Bid and Award Process for the Developer’s Phase 1A Infrastructure
Improvements. The provisions of this Section 6.2 shall apply only to the Phase 1A Infrastructure
Improvements that Developer performs. Developer shall award subcontracts in compliance with the
Authority Procurement Policy and Authority Resolution 2020-002 and as implemented (with
modifications) and further delineated in the bid and award process that is attached as Exhibit G-1
hereto and as further set out in this Section 6.2. Developer represents and warrants that the
subcontracts listed in Exhibit G-2 hereto were awarded in accordance with the bid and award process
set forth in Exhibit G-1 hereto, subject to such waivers as have been approved by the Authority under
the Authority Procurement Policy and Authority Resolution 2020-002. Developer may utilize
subcontracts awarded prior to the Effective Date of this Agreement, provided such subcontracts were
procured in accordance with this Section 6.2. Nothing herein is intended to limit the Executive
Director’s authority to implement the Authority Procurement Policy and Authority Resolution 2020-
002 and approve waivers as set forth therein.
6.2.1. Sole Source Subcontract Award. If so intended by Developer, Developer
shall provide notice of its intention to award a sole source contract to Authority and Authority shall
evidence its approval of the Developer’s proposed sole source subcontract award (which approval
shall not be unreasonably withheld) by delivering a signed Sole Source Subcontract Award Approval
in the form set forth in Exhibit L (with respect to Developer’s Phase 1A Infrastructure
Improvements) and Authority shall evidence its approval of such sole source subcontract award by
counter-signing such Sole Source Subcontract Award Approval. Authority shall counter-sign a Sole
Source Subcontract Award Approval or provide written notice of Authority’s reasons for withholding
approval within five (5) Business Days after receiving written notice from the Developer. If
Authority fails to respond to a written request for Sole Source Subcontract Award Approval within
five (5) Business Days, Developer shall notify Authority that such deadline has passed and Authority
shall respond in writing within two (2) Business Days after receiving written notice from the
Developer. If Authority fails to respond within such additional two (2) Business Day period, then
Authority shall be deemed to have approved such Sole Source Subcontract Award Approval.
6.2.2. Best Qualified Contractor Subcontract Award. If so intended by Developer,
Developer shall provide notice of its intention to award a subcontract on the best qualified contractor
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who is not the lowest bidder) to Authority and Authority shall evidence its approval of the
Developer’s proposed best qualified subcontract award (which approval shall not be unreasonably
withheld) by delivering a signed Best Qualified Contractor Subcontract Award Approval in the form
set forth in Exhibit M (with respect to Developer’s Phase 1A Infrastructure Improvements) and
Authority shall evidence its approval of such best qualified contractor award by counter-signing such
Best Qualified Contractor Subcontract Award Approval. Authority shall counter-sign a Best
Qualified Contractor Subcontract Award Approval or provide written notice of Authority’s reasons
for withholding approval within five (5) Business Days after receiving written notice from the
Developer. If Authority fails to respond to a written request for Best Qualified Contractor
Subcontract Award Approval within five (5) Business Days, Developer shall notify Authority that
such deadline has passed and Authority shall respond in writing within two (2) Business Days after
receiving written notice from the Developer. If Authority fails to respond within such additional two
2) Business Day period, then Authority shall be deemed to have approved such Best Qualified
Contractor Subcontract Award Approval.
6.2.3. Applicability of Authority Procurement Policy. Notwithstanding anything
to the contrary set forth in the Authority Procurement Policy or Authority Resolution 2020-002, to
the extent that Developer procures work to construct all or a portion of the Remaining Phase 1A
Infrastructure Improvements pursuant to Section 2.3 and to the extent Developer procures work with
respect to Remaining Phase 1A Infrastructure Improvements (or, with the reasonable approval of the
Executive Director, Developer’s Phase 1A Infrastructure Improvements) as a result of a casualty or
condemnation event, Developer may procure such work without regard to the bidding requirements
set forth in Sections 1 and 2 of the Authority Procurement Policy. Except with respect to Sections 1
and 2 of the Authority Procurement Policy, the requirements of the Authority Procurement Policy
and Authority Resolution 2020-002, as modified by this Agreement, shall remain in effect and apply
to the Remaining Phase 1A Infrastructure Improvements constructed by Developer and any work
with respect to Remaining Phase 1A Infrastructure Improvements (or, with the reasonable approval
of the Executive Director, Developer’s Phase 1A Infrastructure Improvements) procured by
Developer as a result of a casualty or condemnation event. The modifications described above are
intended to be modifications by agreement approved by the Authority Board, as expressly authorized
in the Authority Procurement Policy.
6.3. Bid and Award Process for the Remaining Phase 1A Infrastructure Improvements. If
the Port District constructs or causes the construction of the Remaining Phase 1A Infrastructure
Improvements, the Port District shall use its procurement policies, then in effect.
6.4. The Convention Center as a Special Purpose Project. Pursuant to Authority
Resolution 2020-002, the Convention Center constitutes a “special purpose project” as defined in
Section 6 of the Authority Procurement Policy, and the requirements of Sections 1.b.ii, 1.b.iii, 2 and
3(b) of the Authority Procurement Policy shall not apply to the provisions of this Agreement
pertaining to development and construction of the Convention Center or work for the Convention
Center procured by Developer as a result of a casualty or condemnation event pursuant to Article V
of the Sublease.
6.5. Procurement of Alterations. Procurement of work for Alterations is governed by the
Sublease and not this Agreement, and the requirements of the Authority Procurement Policy shall not
apply to Alterations. The modifications described above are intended to be modifications by
agreement approved by the Authority Board, as expressly authorized in the Authority Procurement
Policy.
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6.6. Bid Opening and Award. In the case of any Competitive Bid or Solicitation Process
for the Developer’s Phase 1A Infrastructure Improvements, Developer shall provide the Authority
with a copy of the tabulation of competitive bid results with respect to each contract and subcontract,
as applicable. Developer shall provide the Authority with copies of all executed contracts awarded in
accordance with this Section 6.6 and Developer shall certify in writing to the Authority that such
contracts were awarded in accordance with the process described in Exhibit G-1 hereto, subject to
such waivers as have been approved by the Authority in accordance with the Authority Procurement
Policy and Authority Resolution 2020-002. A list of the subcontracts awarded for the Developer’s
Phase 1A Infrastructure Improvements prior to the Effective Date is set forth in Exhibit G-2.
Developer hereby certifies to the Public Entities that the subcontracts listed in Exhibit G-2 were bid
and awarded in accordance with the process described in Exhibit G-1 hereto, subject to such waivers
as have been approved by the Authority under the Authority Procurement Policy and Authority
Resolution 2020-002.
6.7. Authority Procurement Policy Acknowledgement. In the event Developer exercises
the Second Sweetwater Park Option and only for purposes of Developer’s procurement of General
Contracts for Sweetwater Park, Authority waives the bidding requirement of the Authority
Procurement Policy (including, without limitation, set forth in Sections 1 and 2 of the Authority
Procurement Policy). All other requirements of the Authority Procurement Policy and Authority
Resolution 2020-002, as modified by this Agreement, shall apply to Developer’s procurement of
contracts for Sweetwater Park. Authority acknowledges that in compliance with the applicable
provisions of the Authority Procurement Policy and Authority Resolution 2020-002, Authority has
required Developer to enter into this Agreement to establish the terms and conditions pursuant to
which the Developer may develop and construct the Project and obtain payment for a portion of the
eligible costs of developing and constructing the Developer’s Phase 1A Infrastructure Improvements
and the Convention Center from the proceeds of the Authority Bonds and the County Funds, and that
to the extent requirements set forth in this Agreement differ from the requirements set forth in
Authority Procurement Policy and Authority Resolution 2020-002, the requirements set forth in this
Agreement will govern the procurement, development and funding of the Project, including the
Remaining Phase 1A Infrastructure Improvements if Developer has exercised the Second Sweetwater
Park Option (to the extent permitted by Authority Procurement Policy and Authority Resolution
2020-002). Notwithstanding anything to the contrary in this Agreement, Sections 6.2 through 6.2.2
shall not apply to the Remaining Phase 1A Infrastructure Improvements.
ARTICLE VII
DESIGN AND CONSTRUCTION STANDARDS
7.1. Standard of Care. Developer will use commercially reasonable efforts to furnish
efficient business administration and supervision and manage the performance of the work with
respect to the Project in an expeditious and economical manner consistent with Authority’s interests.
Developer shall endeavor to cause the General Contractor and all Subcontractors to construct the
Project in a workmanlike manner. Developer’s professional consultants shall be skilled in the
profession necessary to perform their respective services and Developer shall cause them to perform
their services related to the Project in a skillful and competent manner, consistent with the standards
generally recognized as being employed by professionals qualified to perform the services in the
same discipline in the State of California.
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7.2. Compliance with Laws.
7.2.1. Port District Compliance with Laws. Port District shall in its construction
of the Remaining Phase 1A Infrastructure Improvements abide by and comply with, and cause any of
its General Contractor, Subcontractors, employees, and agents, to abide by and comply with all
Laws.
7.2.2. Developer’s Compliance with Laws. Developer shall in all activities on or
in connection with the Project Site and the Project, and in all uses thereof, including without
limitation the Permitted Use and any construction of the Project, abide by and comply with, and
cause the Developer Parties (other than Developer) and Hotel Operator to abide by and comply with,
all Laws at Developer’s sole cost and expense, and Authority shall not have any obligations or
responsibilities to comply with any Laws as to the Project Site and the Improvements or any use
thereby by Developer Parties or Hotel Operator. In particular and without limitation, Developer shall
have the sole and exclusive obligation and responsibility, at Developer’s sole cost and expense, to
comply with the requirements of the following, to the extent applicable: (i) the San Diego Unified
Port District Code, including without limitation, Article 10 (Stormwater Management and Discharge
Control), (ii) the ADA, including but not limited to regulations promulgated thereunder,
iii) applicable federal, state and local laws and regulations regarding employment and labor
practices, including, without limitation, the provisions of Section 7.2.3 and Article XX of this
Agreement, (iv) any Coastal Development Permit (“CDP”) (including any conditions of approval or
mitigation measures or project changes pursuant to the environmental review under the California
Environmental Quality Act (“CEQA”)) or any other California Coastal Commission (“CCC”)
regulations or local, state or federal requirements now or hereafter affecting the Project Site or the
Improvements, including the use or development thereof, (v) the Port Master Plan (“PMP”), (vi) the
Chula Vista Municipal Code, (vii) any other development permits or approvals accepted by
Developer, and (viii) the policies adopted by the BPC. Until the earlier of such time as all
components of the Developer’s Phase 1A Infrastructure Improvements are Accepted or the Term of
this Agreement terminates or expires, neither the BPC nor the City Council shall adopt any Law that
only applies to the Developer’s Phase 1A Infrastructure Improvements, unless the Law is determined
by the BPC, in its sole and absolute discretion, or the City Council, in its sole and absolute discretion
as applicable), but in either case, in a manner that is neither arbitrary nor capricious, to be necessary
for health and safety reasons, to protect the welfare of the people, or to exercise the Port District’s
police powers under the Port Act or the City Council’s police powers under applicable Laws,
including the CVMC. The foregoing limitation shall not apply to the adoption of any ordinance or
resolution that authorizes an amendment to this Agreement or any Contemporaneous Agreement, or
is adopted to authorize the enforcement of Port District’s or City’s rights or the performance of Port
District’s or City’s obligations under this Agreement or any Contemporaneous Agreement, including
without limitation, any ordinances or resolutions adopted by the BPC or City Council as part of any
discretionary approval. In the event of any conflict between the terms of a policy adopted by the BPC
or City Council and this Agreement, Developer shall deliver notice to Port District or City, as
applicable, of such a conflict and the Parties shall meet and confer within ten (10) days of Port
District’s or City’s, as applicable, receipt of the notice to discuss the conflict and attempt to resolve
the conflict in good faith prior to commencing mediation pursuant to Section 26.12.10. If the conflict
is not resolved pursuant to Section 26.12.10, then the terms of this Agreement shall control and
Developer shall be excused from complying with the terms of such policy adopted by the BPC or
City Council, to the extent of such conflict only.
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7.2.3. Prevailing Wage.
7.2.3.1. This Section 7.2.3.1 applies only to the Project and does not apply
to the Remaining Phase 1A Infrastructure Improvements unless and until Developer exercises a
Sweetwater Park Option. Developer acknowledges and agrees that:
a. Any construction, alteration, demolition, installation, or
repair work, in each case for the Project, required or performed under this Agreement constitutes
public work” under California Prevailing Wage Law, including Labor Code §§ 1720 through 1861,
et seq. (“PWL”), and obligates Developer to cause such work to be performed as “public work,”
including, but not limited to, the payment of applicable prevailing wages to all Persons subject to the
PWL.
b. Developer shall cause all Persons performing “public
work” for the Project under this Agreement to comply with all applicable provisions of the PWL and
other applicable wage Laws.
c. Developer’s violations of the PWL shall constitute a
breach (subject to cure pursuant to Section 21.1.2) under this Agreement.
d. Authority hereby notifies Developer, and Developer
hereby acknowledges, that the PWL includes, without limitation, Labor Code § 1771.1(b) that
provides that the following requirements described in Labor Code § 1771.1(a) shall be included in all
bid invitations and “public work” contracts: “A contractor or subcontractor shall not be qualified to
bid on, be listed in a bid proposal, subject to the requirements of § 4104 of the Public Contract Code,
or engage in the performance of any contract for “public work,” as defined in this chapter, unless it is
currently registered and qualified to perform “public work” pursuant to Section 1725.5. It is not a
violation of this Section for an unregistered contractor to submit a bid that is authorized by Section
7029.1 of the Business and Professions Code or by Sections 10164 or 20103.5 of the Public Contract
Code, provided the contractor is registered to perform “public work” pursuant to Section 1725.5 at
the time the contract is awarded.”
e. Developer acknowledges that its obligations under the
PWL with respect to the Project include, without limitation, ensuring that:
i. pursuant to Labor Code § 1771.1(b), a bid shall not
be accepted nor any contract or subcontract entered into without proof of the contractor or
subcontractor’s current registration to perform “public work” pursuant to § 1725.5;
ii. pursuant to Labor Code § 1771.4(a)(1), the call for
bids and contract documents shall specify that the project is subject to compliance monitoring and
enforcement by the California Department of Industrial Relations (“DIR”);
iii. pursuant to Labor Code § 1771.4(a)(2), it posts or
requires the prime contractor to post job site notices, as prescribed by regulation; and
iv. pursuant to Labor Code § 1773.3(a)(1), it provides
notice to the DIR of any “public works” contract subject to the requirements of the PWL, within
thirty (30) days of the award, but in no event later than the first day in which a contractor has workers
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employed upon the public work. Pursuant to Labor Code § 1773.3(a)(2), the notice shall be
transmitted electronically in a format specified by the DIR and shall include the name and
registration number issued by the DIR pursuant to §1725.5 of the contractor, the name and
registration number issued by the DIR pursuant to §1725.5 of any subcontractor listed on the
successful bid, the bid and contract award dates, the contract amount, the estimated start and
completion dates, job site location, and any additional information that the DIR specifies that aids in
the administration and enforcement of the PWL. PWC-100 is the name of the form currently used by
the DIR for providing the notice, but Developer shall determine and use whatever form the DIR
requires.
f. None of the Authority, Port District, City, or Financing
District shall be responsible for Developer’s failure to comply with any applicable provisions of the
PWL.
g. Notwithstanding anything in this Agreement to the
contrary, Developer shall not be responsible for any Person’s failure to comply with any applicable
provisions of the PWL with respect to any work performed by, or on behalf of, any Public Entity
Party (other than by a Developer Party or Hotel Operator, or on behalf of a Developer Party or Hotel
Operator, or by any Person acting directly or indirectly under a contract with a Developer Party or
Hotel Operator).
7.3. Compliance with Design and Construction Standards; Chula Vista Building Code.
7.3.1. Design and Construction Standards.
7.3.1.1. Developer shall comply, and require compliance by any of its
General Contractor, Subcontractors, employees, and agents, or other Developer Parties, with the
applicable Design and Construction Standards in connection with the design and construction of
Developer’s Phase 1A Infrastructure Improvements. Developer shall not be required to exceed the
Design and Construction Standards or to comply with any other City of Chula Vista design and
construction standards in connection with the design and construction of Developer’s Phase 1A
Infrastructure Improvements except to the extent set forth in the approved Contract Documents or the
Approved Drawings and Specifications.
7.3.1.2. Developer shall be entitled to an Expedited Review Process in the
event that a Public Entity Development Party requests, requires, instructs or demands (for purposes
of this Section 7.3.1, a “Phase 1A Requirement”) that any Developer Party satisfy or implement any
design or construction standard in connection with Developer’s Phase 1A Infrastructure
Improvements that Developer reasonably and in good faith determines to be in excess of the
requirements of the Design and Construction Standards; provided that prior to initiating the
Expedited Review Process, Developer shall have submitted a written request (which shall be by
email to the Authority Email Addresses) to the applicable Public Entity Development Party that the
Phase 1A Requirement be rescinded, including the reasons for Developer’s objection to the Phase 1A
Requirement. Should the Expedited Review Individual fail to respond within 24 Business Hours
from the time the email initiating the Expedited Review Process is sent by the Developer, the
Developer’s request to rescind the Phase 1A Requirement shall be deemed disapproved.
7.3.1.3. In the event that any requirement set forth in the Design and
Construction Standards may be satisfied in more than one manner consistent with the Design and
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Construction Standards, Developer may elect to satisfy such requirement in the manner consistent
with such requirements selected by Developer.
7.3.2. Chula Vista Building Code.
7.3.2.1. Developer shall comply, and require compliance by any of its
General Contractor, Subcontractors, employees, and agents, or other Developer Parties, with the
applicable provisions of the Chula Vista Building Code, in connection with the design and
construction of Convention Center, Resort Hotel, and Parking Improvements. Developer shall not be
required to exceed the requirements of the Chula Vista Building Code or to comply with any other
City of Chula Vista design and construction standards in connection with the design and construction
of the Convention Center, Resort Hotel, and Parking Improvements except to the extent set forth in
the approved Convention Center Plans, Resort Hotel Plans (defined in the Ground Lease),
Preliminary Parking Improvement Plans (defined in the Ground Lease), and Parking Improvement
Plans (defined in the Ground Lease).
7.3.2.2. Developer shall be entitled to an Expedited Review Process in the
event that any Public Entity Development Party requests, requires, instructs or demands (for purposes
of this Section 7.3.2, a “Requirement”) that any Developer Party satisfy or implement any design or
construction standard in connection with the Convention Center that Developer reasonably and in
good faith determines to exceed the requirements of the Chula Vista Building Code; provided that
prior to initiating the Expedited Review Process, Developer shall have submitted a written request to
the applicable Public Entity Development Party that the Requirement be rescinded, including the
reasons for Developer’s objection to the Requirement. Should the Expedited Review Individual fail
to respond within 24 Business Hours from the time the email initiating the Expedited Review Process
is sent by the Developer, the Developer’s request to rescind the Requirement shall be deemed
disapproved.
7.3.2.3. In the event that any standard or requirement set forth in the
Chula Vista Building Code may be satisfied in more than one manner consistent with the Chula Vista
Building Code, Developer may elect to satisfy such standard or requirement in the manner consistent
with the Chula Vista Building Code selected by Developer.
7.3.3. Standard Specifications. In connection with any modification of the
Approved Drawings and Specifications for the Developer’s Phase 1A Infrastructure Improvements,
Developer shall comply, and require compliance by any of its General Contractor, Subcontractors,
employees, and agents, with the editions of the following reference specifications that were in effect
on the Plan Submission Date: the Standard Specifications and the Chula Vista Standard Special
Provisions.
7.3.4. Summary of Construction Standards. In order to clarify the design and
construction standards applicable Developer’s Phase 1A Infrastructure Improvements and the
Convention Center, Developer may, in Developer’s discretion, provide a flier substantially in the
form attached hereto as Exhibit Z to any Person entering the Project Site.
7.3.5. Expedited Review Process Inapplicable to Other Public Agencies. The
provisions of Sections 7.3.1 and 7.3.2 permitting an Expedited Review Process with respect to
Design and Construction Standards and the Chula Vista Building Code apply only to Requirements
imposed by the City or Port District and are inapplicable to any requirements that may be imposed by
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other public agencies. At the request of the Developer, the City and Port District will use reasonable
efforts to meet with other public agencies and the Developer to address requests, requirements,
instructions, or demands imposed by such other public agencies that the Developer reasonably and in
good faith determines to exceed applicable legal requirements.
7.4. Construction Period. With respect to Convention Center and any portion of the
Developer’s Phase 1A Infrastructure Improvements, the provisions of Sections 7.1, 7.2 and 7.3 shall
apply until Acceptance of the Convention Center or such portion of Developer’s Phase 1A
Infrastructure Improvement, as applicable.
7.5. Authority Approval Not a Waiver of Obligations. Where approval by the Authority,
the Executive Director, or other representatives of the Authority is required, it is understood to be
general approval only and does not relieve Developer of responsibility for complying with all
applicable Laws or other requirements of this Agreement, except in the case of the Authority’s
express waiver of the requirement to comply with (a) any Authority requirement, to the extent such
requirement is waivable, or (b) any other requirement of this Agreement waivable by the Authority.
For purposes of this Agreement, in the event of Authority’s express waiver provided pursuant to
clauses (a) or (b) above, Developer shall be deemed in compliance with such Authority requirements
or other requirement of this Agreement as a result of such waiver, in each case, only to the extent of
such waiver. No such waiver shall constitute an assumption of liability by the Authority, nor shall
the Authority, through approval, become an insurer or surety of work associated with the approvals.
ARTICLE VIII
CONSTRUCTION
8.1. Site Safety, Security. Developer shall be responsible for Project Site safety and
security, with respect to Developer’s construction of the Project.
8.1.1. Persons. As between the Developer, on one hand, and the City, Port
District, and the Authority, on the other hand, and without expanding the Developer’s contractual
obligations or duties to any Person other than the City, Port District, and Authority, the Developer
shall be solely responsible for the safety and security of its officers, agents, and employees
authorized by Developer to access the Project Site.
8.1.2. Other. Developer is responsible for each portion of the Developer’s
Phase 1A Infrastructure Improvements Site and all other materials, equipment, and other incidentals
on such portion of the Developer’s Phase 1A Infrastructure Improvements Site until such portion of
the completed Developer’s Phase 1A Infrastructure Improvements have been Accepted by the City or
Port District, as applicable. Developer is responsible for the Site, materials, equipment, and all other
incidentals on the Site until the completed Convention Center has been Accepted by the Authority.
From and after Acceptance, any responsibility of the Developer for the Convention Center shall be
pursuant to the Sublease.
8.1.3. Environment. In the construction and development of the Project,
Developer shall comply with all environmental laws and regulations, including the Clean Air Act of
1970, the Clean Water Act, Executive Order number 11738, and the Stormwater Management and
Discharge Control Ordinance No. 0-17988 and any and all Best Management Practice (“BMP”)
guidelines and pollution elimination requirements as may be established by an enforcement official.
Furthermore, Developer shall prepare and incorporate into the drawings and specifications a
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Stormwater Pollution Prevention Plan (“SWPPP”) to be implemented by Developer during Project
construction and, until Acceptance of the Convention Center or the applicable Developer’s Phase 1A
Infrastructure Improvements. Where applicable, the SWPPP shall comply with both the California
Regional Water Quality Control Board Statewide General Construction Storm Water permit and
National Pollution Discharge Elimination System permit requirements and shall be in conformance
with the City of Chula Vista BMP Design Manual and CVMC Chapter 14.20 (Storm Water
Management and Discharge Control).
8.1.4. Access to Project Site. During the Construction Period, the Public Entity
Parties shall have the right, but not the obligation, to enter upon and inspect the portions of the
Project Site where the construction of the Project is ongoing, during normal business hours and upon
a two (2) Business Days’ prior notice to Developer (except for or in connection with inspections
undertaken by any Public Entity in its regulatory capacity and except in the case of an emergency in
which case no prior notice shall be required but each of such Public Entity Parties that enter the
Project Site shall notify Developer and Developer’s Risk Construction Manager thereof by phone
prior to entering the Project Site), and each Public Entity that enters the Project Site shall, and shall
cause each of its respective Public Entity Parties that enter the Project Site, as applicable, to:
a) comply with all applicable security and safety procedures of Developer of which Developer
informs such Public Entity in writing and with which such Public Entity Party can reasonably
comply, and (b) not interfere with Developer’s construction of the Project. Notwithstanding the
foregoing, nothing herein shall limit the Port District’s or City’s right to enter the Project Site at any
time to exercise their respective police powers.
8.2. Public Right-of-Way. All work, including materials testing, special testing, and
surveying to be conducted in the public right-of-way shall be coordinated with the Authority.
Developer agrees to follow all Laws and regulations, and all written and publicly available standards
and regulations of the Authority, as applicable, while working in the public right-of-way, including,
but not limited to, utilizing proper traffic control and obtaining necessary permits.
8.3. Traffic Control. In connection with the Project, Developer shall be responsible for
traffic management, including traffic control implementation, maintenance, and preparing detailed
traffic control plans to be submitted to the jurisdiction for approval.
8.4. Maintenance. Developer shall maintain and be responsible for each portion of the
Developer’s Phase 1A Infrastructure Improvements until Acceptance of such portion, including
ongoing erosion prevention measures. Upon Acceptance, the City, the Port District and/or the
Authority, as applicable, shall be responsible for maintenance of such portion of the Developer’s
Phase 1A Infrastructure Improvements, as determined through one or more separate agreements
among two or more of the City, the Port District, and the Authority. All costs incurred by Developer
in maintaining the Developer’s Phase 1A Infrastructure Improvements shall be Developer’s
Phase 1A Infrastructure Improvements Costs. To the extent such costs are incurred after Completion
but before Acceptance of the Developer’s Phase 1A Infrastructure Improvements and are not paid to
Developer pursuant to Section 9.1 (including pursuant to the Final Accounting under Section 9.1.6),
Authority shall reimburse Developer for such costs within thirty (30) days after Developer provides
Authority with a request for reimbursement, together with supporting documentation evidencing such
costs. For the avoidance of doubt, Developer shall have no further obligations pursuant to this
Section 8.4 with respect to any portion of the Developer’s Phase 1A Infrastructure Improvements
after Acceptance of such portion of the Developer’s Phase 1A Infrastructure Improvements.
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8.5. Construction Cooperation.
8.5.1. Within thirty (30) calendar days after the Effective Date, the Parties shall
schedule a meeting at the Site regarding the construction and development of the Project, the Resort
Hotel and the Parking Improvements and other matters related thereto. Developer and the Public
Entities, as applicable, shall cause executive and project level personnel of Developer and the Public
Entities (including such Public Entity Development Parties whose presence may be reasonably
requested by Developer) to attend such meeting.
8.5.2. On the last Wednesday of each month, at the Site, or such other time and
place as the Parties may reasonably agree, Developer and the Public Entities, as applicable, shall
cause appropriate personnel of Developer and the Public Entities (including such Public Entity
Development Parties whose presence may be reasonably requested by Developer) to attend a meeting
regarding the construction and development of the Project, the Resort Hotel and the Parking
Improvements and other matters related thereto. Other meetings relating to the Project or the Work
shall be held (in person, by telephone, or by virtual meeting room, as agreed by the Parties) at times
and at such frequency as reasonably requested by the Developer or any Public Entity. Such additional
meetings shall occur within seventy-two Business Hours of a written request submitted by email to
the other Parties. Such meetings shall be attended by appropriate representatives of Developer and
the Public Entities, including such Public Entity Development Parties whose presence may be
reasonably requested by Developer and such representatives of the Developer whose presence may
be reasonably requested by a Public Entity. Any request for attendance of specified individuals or
representatives of Developer or any Public Entity Development Parties shall be made by written
notice to the applicable Party by email not fewer than 24 Business Hours prior to the applicable
meeting and upon receipt of such written request, the applicable Party shall take all reasonably
available actions to ensure the attendance of the requested individual or representative or another
individual authorized to make determinations on the requested Person’s behalf. All notices and
requests to the Public Entities under this Section shall be submitted to the Authority Email
Addresses.
ARTICLE IX
PAYMENT OF PROJECT COSTS
9.1. Developer’s Phase 1A Infrastructure Improvements Costs. The provisions of this
Section 9.1 and each subsection of this Section 9.1 shall apply solely to the Developer’s Phase 1A
Infrastructure Improvements.
9.1.1. Payment of Costs Associated with the Developer’s Phase 1A Infrastructure
Improvements. Based upon Developer’s Phase 1A Payment Requests submitted to the Authority by
the Developer, the Authority shall make progress payments on account of the Developer’s Phase 1A
Contract Sum to the Developer in accordance with the provisions of this Section 9.1. The amount of
each progress payment shall be computed as follows:
9.1.1.1. The amount of each progress payment shall first include:
a. The Developer’s Phase 1A Infrastructure Improvements
Costs incurred or to be incurred by Developer and for which Developer has made or intends to make
actual payment prior to the next Developer’s Phase 1A Payment Request; and
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b. The Stipulated Developer’s Phase 1A Infrastructure
Improvements Overhead Amount that has accrued as of the date of such Developer’s Phase 1A
Payment Request.
9.1.1.2. The amount of each progress payment shall then be reduced by,
without duplication:
a. The aggregate of any amounts previously paid by the
Authority in respect of the Developer’s Phase 1A Contract Sum;
b. The amount by which the Architect, pursuant to the
Architect’s Certificate that is attached to such Developer’s Phase 1A Payment Request, reduces the
amount to be paid with respect to such Developer’s Phase 1A Payment Request. The Architect may
reduce such amount to the extent the work performed by Developer for which payment is requested
has not been performed substantially in accordance in all material respects with the Approved
Drawings and Specifications for the Developer’s Phase 1A Infrastructure Improvements, in which
case the amount to be disbursed under the applicable Developer’s Phase 1A Payment Request shall
be reduced to reflect the cost of causing such construction to be performed substantially in
accordance in all material respects with such Approved Drawings and Specifications (without
duplication of any similar reduction that is made by Developer). In the event of any such reduction,
Developer may seek payment for the amounts so reduced in any subsequent Developer’s Phase 1A
Payment Request; and
c. Any amount for which the Developer does not intend to
pay General Contractor or any Subcontractor, unless the work has been performed by others the
Developer intends to pay.
9.1.1.3. Funds for Payment of Costs/Expenses.
a. On the Effective Date, Authority shall cause the Trustee
to deposit, from the proceeds of the Authority Tax-Exempt Bonds, (i) an amount equal to
6,700,292.00 into the 2022B Bond Proceeds Subaccount and (ii) an amount equal to $3,299,708.00
into the 2022B Bayfront Infrastructure Improvements Account of the Construction Fund. The Parties
acknowledge that the County Funding Agreement provides for the County to pay County Funds to
the Authority in multiple payments, from time to time as described in the County Funding
Agreement, and that such payments are expected to occur after the Effective Date. Within five (5)
Business Days of the Authority’s receipt of any County Funds, the Authority shall transfer such
County Funds as follows: (x) the Authority shall transfer the first $6,900,292.00 of the County
Funds that the Authority receives (the “County Sweetwater Park Funds”) to the Port District; (y) the
Authority shall transfer the next $14,800,000.00 of the County Funds that the Authority receives to
the Trustee for deposit into the County Funded Developer’s Phase 1A Subaccount; and (z) the
Authority shall transfer the remainder of the County Funds that the Authority receives (expected to
cumulatively equal $3,299,708.00) to the County Funded Bayfront Infrastructure Improvements
Account of the Construction Fund. The Authority shall cause the Trustee to make the deposits
described in clauses (y) and (z), above.
b. The Authority shall take all actions necessary to cause the
Trustee to disburse moneys from: (i) first, the 2022B Bond Proceeds Subaccount, (ii) second, the
County Funded Developer’s Phase 1A Subaccount, (iii) third, the Phase 1A Infrastructure
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Improvements Subaccount; and (iv) fourth, the Authority Existing Revenues Account (in that order)
for payments required to be made to the Developer for Developer’s Phase 1A Infrastructure
Improvements Costs, as and when required under this Section 9.1. Each Public Entity shall not
interfere with any lawfully made disbursement request delivered to the Trustee.
c. Until the County Funds Release Date, (A) Authority shall
not permit any funds in the 2022B Bond Proceeds Subaccount, the County Funded Developer’s
Phase 1A Subaccount or the Phase 1A Infrastructure Improvements Subaccount of the 2022B
Construction Account to be used for any purpose other than making payments to Developer in
accordance with this Section 9.1 without the prior written consent of the Developer, which consent
shall be granted or withheld in Developer’s sole discretion, and (B) Authority shall direct or
authorize the Trustee to transfer funds out of the 2022B Bond Proceeds Subaccount, the County
Funded Developer’s Phase 1A Subaccount and the Phase 1A Infrastructure Improvements
Subaccount of the 2022B Construction Account only to the account or accounts designated by
Developer in writing (or as otherwise consented to in Developer’s sole discretion). Until the County
Funds Release Date, amounts in the 2022B Bond Proceeds Subaccount shall not be applied to any
redemption of the Authority Bonds, except for the mandatory redemption of the Authority Bonds on
or after June 1, 2027 if and to the extent required by the Authority Indenture.
d. Until the County Funds Release Date, (A) Authority shall
not permit any funds in the Authority Existing Revenues Account of the Revenue Fund to be used for
any purpose other than (i) making payments to Developer in accordance with this Section 9.1 without
the prior written consent of the Developer, which consent shall be granted or withheld in Developer’s
sole discretion, or (ii) transfers to any fund or account established under the Authority Indenture or
disbursements to the Authority, the City or the Port District to pay any cost incurred by the
Authority, the City or the Port District with respect to the Resort Hotel, Convention Center, Parking
Improvements, or Developer’s Phase 1A Infrastructure Improvements or otherwise relating to the
transactions contemplated by the Convention Center Leases, the Authority Indenture, and this
Agreement (collectively, the “Additional Authority Uses”), which during the first eighteen (18)
months following the Commencement Date shall not to exceed $1,000,000 in the aggregate (the
Additional Authority Uses Cap”), and (B) Authority shall direct or authorize the Trustee to transfer
funds out of the Authority Existing Revenues Account of the Revenue Fund only to the account or
accounts designated by Developer in writing (or as otherwise consented to in Developer’s sole
discretion) or, subject to the Additional Authority Uses Cap, to any other account or payee for the
payment of Additional Authority Uses. After the date that is eighteen (18) months after the
Commencement Date, the Authority may permit funds in the Authority Existing Revenues Account
of the Revenue Fund to be used to pay Additional Authority Uses in excess of the Additional
Authority Uses Cap so long as, immediately after giving effect to such payment, the remaining
balance in in the Authority Existing Revenues Account of the Revenue Fund is at least $3,000,000
or a lesser amount with the reasonable consent of Developer).
e. Until the County Funds Release Date, the Port District
shall use the County Sweetwater Park Funds only for Remaining Phase 1A Infrastructure
Improvements Costs. Notwithstanding the foregoing, not later than five (5) Business Days after the
Developer exercises a Sweetwater Park Option, the Port District shall promptly transfer all remaining
County Sweetwater Park Funds to the Trustee for deposit into the County Funded Developer’s
Phase 1A Subaccount.
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f. Until Acceptance of the Developer’s Phase 1A
Infrastructure Improvements and payment of all Developer’s Phase 1A Infrastructure Improvements
Costs: (1) the City, Financing District, and Port District shall use commercially reasonable efforts to
ensure the receipt of amounts that, if received by the City, the Financing District, or the Port District,
would be Pre-Completion Lease Payments (as defined in the Facility Lease), Special Taxes (as
defined in the Loan Agreement), or Real Estate Revenues (as defined in the Support Agreement),
respectively, and are due and payable to the City, the Financing District, or the Port District, as
applicable; (2) pursuant to and subject to the terms of the Support Agreement, the Port District shall
transfer or cause all Real Estate Revenues that constitute Existing Revenues (as defined in the
Indenture) to be transferred to the Trustee for deposit into the Authority Existing Revenues Account
in accordance with the Authority Indenture; (3) pursuant to and subject to Section 4.12 of the Facility
Lease, the City shall transfer or cause to be transferred to the Trustee the Pre-Completion Lease
Payments for deposit into the Authority Existing Revenues Account in accordance with the Authority
Indenture; (4) pursuant to and subject to the terms of the Loan Agreement, the Financing District
shall transfer or cause all Special Taxes that constitute Existing Revenues (as defined in the
Indenture) to be transferred to the Trustee for deposit into the Authority Existing Revenues Account
in accordance with the Authority Indenture.
g. Not later than five (5) Business Days after the Sufficient
Completion Date, and provided that the Developer has not previously exercised a Sweetwater Park
Option, the Port District shall transfer any remaining County Sweetwater Park Funds held by the Port
District directly to the Trustee for deposit in the County Funded Developer’s Phase 1A Subaccount.
h. Until the Sufficient Completion Date, the Authority shall
direct the Trustee to disburse amounts on deposit in the 2022B Bayfront Infrastructure Improvements
Account of the Construction Fund only for Remaining Phase 1A Infrastructure Improvements Costs.
If the Developer exercises a Sweetwater Park Option, the Authority shall cause the Trustee to
disburse moneys from the 2022B Bayfront Infrastructure Improvements Account for Remaining
Phase 1A Infrastructure Improvements Costs incurred by Developer pursuant to approved
Developer’s Phase 1A Infrastructure Improvements Payment Requests in accordance with this
Section 9.1. Upon and after the Sufficient Completion Date the Authority shall have the right and
authority under the Indenture to requisition amounts from the 2022B Bayfront Infrastructure
Improvements Account for any purpose permitted under the Authority Indenture from time to time,
without the Developer’s approval or consent.
i. On and after the County Funds Release Date, all amounts
in the County Funded Developer’s Phase 1A Subaccount shall be available for withdrawal and use by
the Authority for any purpose as may be agreed to by the City and the Port District from time to time
without any obligation to confer with or obtain consent from the Developer.
j. At all times, all amounts in the County Funded Bayfront
Infrastructure Improvements Account shall be available for withdrawal and use by the Authority for
CVBMP Infrastructure Improvements Costs as agreed to by the City and the Port District from time
to time without any obligation to confer with or obtain consent from the Developer.
9.1.2. Prerequisites to Payment.
9.1.2.1. Developer’s Phase 1A Payment Request. Prior to the
disbursement of any amounts to pay the Developer’s Phase 1A Contract Sum, Developer shall
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provide the Executive Director with a Developer’s Phase 1A Payment Request, together with all of
the items described therein. Each Developer’s Phase 1A Payment Request shall show (i) the
Developer’s Phase 1A Infrastructure Improvements Costs incurred or to be incurred by Developer
and for which Developer has made or intends to make actual payment prior to the next Developer’s
Phase 1A Payment Request and (ii) the Stipulated Developer’s Phase 1A Infrastructure
Improvements Overhead Amount with respect to such Developer’s Phase 1A Infrastructure
Improvements. The form of Developer’s Phase 1A Payment Request attached hereto as Exhibit K-1
may be modified or replaced by Developer, subject to the consent of Authority provided or withheld
in Authority’s sole discretion.
Each Developer’s Phase 1A Payment Request shall be delivered in the
following manner (or by such other means as is reasonably agreed to by the Developer and the
Authority): Developer shall send by electronic mail to the Authority Email Addresses a notice that
the Developer’s Phase 1A Payment Request and supporting documentation have been uploaded to an
internet website, the link to which shall be included in such email notice. Authority shall send
confirmation to the Developer by electronic mail once Authority has successfully accessed the
Developer’s Phase 1A Payment Request.
The Authority shall not have an obligation to make payment to Developer
unless and until Developer provides the Executive Director with a Developer’s Phase 1A Payment
Request, together with all of the items described therein (including the Architect’s Certificate), and
such Developer’s Phase 1A Payment Request is approved by the Executive Director as provided
below.
9.1.2.2. Inspection. The Developer’s Phase 1A Infrastructure
Improvements shall be subject to City inspection, as applicable, as provided in section 2-11 of the
Greenbook. Developer shall ensure that all persons and entities providing work or services for the
Developer’s Phase 1A Infrastructure Improvements comply with the inspection requirements
provided in section 2-11 of the Greenbook.
9.1.2.3. Prevailing Wage Compliance. Developer shall ensure that all
persons and entities providing work or services for the Developer’s Phase 1A Infrastructure
Improvements comply with prevailing wage requirements, as and to the extent described in
Section 7.2.3.1.
9.1.2.4. Public Entity Approval. The Executive Director shall review each
Developer’s Phase 1A Payment Request and the supporting documentation. If the Executive
Director finds in his/her reasonable discretion that any such Developer’s Phase 1A Payment Request
is incomplete (except to a de minimis extent) or contains material errors or misstatements on its face,
then the Executive Director shall so inform Developer in writing within ten (10) Business Days after
Developer provides such Developer’s Phase 1A Payment Request to Authority of the reasons for
his/her finding. Developer shall have the right to respond to such finding by submitting further
documentation requested in such finding after receipt of said finding. The Executive Director shall
review any further documentation received from Developer in support of the Developer’s Phase 1A
Payment Request and inform Developer of his/her approval or denial of the Developer’s Phase 1A
Payment Request within five (5) Business Days after Developer provides such further documentation
to Authority. If the Executive Director does not find that any such Developer’s Phase 1A Payment
Request is incomplete (except to a de minimis extent) or contains material errors or misstatements on
its face, then the Executive Director shall so inform Developer in writing within ten (10) Business
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Days after Developer provides such Developer’s Phase 1A Payment Request to Authority and within
that time period approve the Developer’s Phase 1A Payment Request. If the Executive Director
determines that the Developer’s Phase 1A Payment Request is incomplete (except to a de minimis
extent) or contains material errors or misstatements on its face, but that sufficient and complete
information exists with respect to a portion of the Phase 1A Payment Request, then the Executive
Director shall approve the Developer’s Phase 1A Payment Request with respect to such portion of
the Developer’s Phase 1A Payment Request and so notify Developer within ten (10) Business Days
after Developer provides such Developer’s Phase 1A Payment Request to Authority. The Authority
shall cause the Executive Director to carry out his or her duties under this Section 9.1.2.4 in a
reasonable and good faith manner. Notwithstanding anything to the contrary set forth in this
Agreement, (a) the Authority may make payment to Developer under protest and commence dispute
resolution proceedings pursuant to Section 26.12 and (b) if Authority has made a payment to
Developer and later determines that the payment was made in error, whether due to an incomplete or
inaccurate payment request or due to missing documentation or otherwise, Authority may commence
dispute resolution proceedings pursuant to Section 26.12 to challenge such previous payment. A
certificate or request that Developer delivers under this Agreement will be deemed to contain
material errors or misstatements on its face if such material error or omission is apparent from the
four corners of such certificate or request without the use of extrinsic evidence.
9.1.3. Time of Payment. If the Executive Director provides approval pursuant to
Section 9.1.2 with respect to all or any portion of any Developer’s Phase 1A Payment Request, then
the Authority shall cause payment to be made to Developer for the approved costs/expenses
associated with such Developer’s Phase 1A Payment Request by the Payment Date (excluding any
Developer’s Phase 1A Contested Charges). If the Payment Date falls on a weekend or holiday, the
Payment Date shall be extended to the next Business Day. Except for Developer Phase 1A Contested
Charges, all costs/expenses associated with each Developer Phase 1A Payment Request shall accrue
interest at the Specified Default Rate from the Payment Date until paid. At the request of the
Authority, the Developer will waive the interest accrued during the first ten (10) Business Days
following the applicable Payment Date up to a total of four (4) times in each calendar year for
payments made after the required Payment Date under this Section 9.1.3 and Sections 9.1.4.3(b),
9.2.3 and 9.2.4.2(b). Any payment or portion thereof made to Developer in accordance with a
Developer’s Phase 1A Payment Request and later determined by the Authority and Developer or by
an arbitrator after dispute resolution pursuant to Section 26.12 to have been incorrectly made shall
accrue interest at the Specified Default Rate from the date the Authority made the incorrect payment
until the date the Developer returns such amount to the Authority with interest. Developer shall pay
the amount of the incorrect payment or portion thereof plus such accrued interest to Authority within
ten (10) Business Days following the determination that such payment was incorrectly made to
Developer, or, with the written approval of the Executive Director, such amounts shall be deducted
from the following Developer’s Phase 1A Payment Request(s) submitted by the Developer. Subject
to Section 21.7 and Section 21.8, additional Developer’s Phase 1A Infrastructure Improvements
Costs incurred by the Developer that result from the failure to make payments when required by this
Agreement will be the obligation of the Authority.
9.1.3.1. Additional Costs. Any costs that may accrue, such as interest on
late payments to the General Contractor, Subcontractors, suppliers, or consultants as a result of the
Developer’s failure to make a payment to such parties shall not be the obligation of the Authority if
the Authority has timely made all required payments to Developer or Developer has failed to provide
the corresponding complete Developer’s Phase 1A Payment Request to Authority. Such additional
costs shall be the obligation of the Developer and not eligible for reimbursement.
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9.1.4. Withholding and Contested Charges.
9.1.4.1. Withholding. Except to the extent required by law, Developer
shall comply with and enforce the provisions relating to retainage and withholding set forth in the
General Contract. Any deviations from such provisions of the General Contract shall be subject to
the Authority’s approval, which shall be provided in the sole and absolute discretion of the Authority.
Without limiting the foregoing, Developer may release retainage or withholding amounts to a
General Contractor, subject to Authority’s reasonable approval, if it would reduce the overall cost of
the applicable General Contract. Amounts required to be withheld or retained pursuant to this
Agreement shall be excluded from amounts requested for payment pursuant to Developer Phase 1A
Payment Requests until such amounts will be actually paid to the applicable General Contractor.
9.1.4.2. Payment and Invoicing for Withholding. Where a stop payment
notice or mechanic’s lien has been filed following the recordation of the Notice of Completion,
Developer shall, to the extent in compliance with Law, withhold the amount in controversy until a
fully executed release of stop payment notice or mechanic’s lien or a bond releasing the stop
payment notice or mechanic’s lien has been filed and a conformed copy delivered to the Authority, as
applicable. Notwithstanding anything in this Agreement to the contrary, Developer shall not be
required to withhold any funds from the General Contractor or any Subcontractor to the extent doing
so would violate any applicable law.
9.1.4.3. Developer’s Phase 1A Contested Charges. In the event the
Authority contests whether any amount that is included in any Developer’s Phase 1A Payment
Request is properly included in the Developer’s Phase 1A Contract Sum (“Developer’s Phase 1A
Contested Charges”), the Authority shall provide Developer a written statement of the Developer’s
Phase 1A Contested Charges, the reason why the costs/expenses are contested, and a proposed
resolution.
a. Appeal to the Executive Director. Developer may appeal
the determination by the Authority of any Developer’s Phase 1A Contested Charges. The appeal
must be received within thirty (30) days after the Authority notifies the Developer of such
Developer’s Phase 1A Contested Charge. During the appeal period, and as long as any Developer’s
Phase 1A Contested Charge remains disputed, Developer shall proceed with the development of the
Project, and the Authority shall compensate Developer for all amounts requested under Developer’s
Phase 1A Payment Request at issue other than the Developer’s Phase 1A Contested Charges. If,
following the appeal, the Executive Director determines that any Developer’s Phase 1A Contested
Charges are eligible for reimbursement or payment to Developer, such amounts shall be included in
the next payment to Developer. If the Parties involved in the dispute regarding Developer’s
Phase 1A Contested Charges are unable to agree and settle such dispute within ten (10) Business
Days after the commencement of the appeal period, then the Parties shall resolve the conflict
pursuant to Section 26.12.
b. Interest. All Developer’s Phase 1A Contested Charges
shall accrue interest at the Specified Default Rate from the Payment Date that would have been
applicable to such Developer’s Phase 1A Contested Charges if such Developer’s Phase 1A Contested
Charges were approved for payment until the date on which such Developer’s Phase 1A Contested
Charges are paid to Developer; provided, that no interest shall be paid to Developer with respect to
any Developer’s Phase 1A Contested Charges that are finally determined to be ineligible for
reimbursement or payment to Developer. At the request of the Authority, the Developer will waive
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the interest accrued during the first ten (10) Business Days following the applicable Payment Date up
to a total of four (4) times in each calendar year for payments made after the required Payment Date
under this Section 9.1.4.3(b) and Sections 9.1.3, 9.2.3 and 9.2.4.2(b).
9.1.5. Cutoff for Submission of Invoices. Developer shall submit its final
Developer’s Phase 1A Payment Request not later than the Cutoff Date. Any Developer’s Phase 1A
Payment Requests submitted after the Cutoff Date shall not be reviewed or included as a Developer’s
Phase 1A Infrastructure Improvements Cost or Stipulated Developer’s Phase 1A Infrastructure
Improvements Overhead Amount. The final payment by the Authority for the Developer’s Phase 1A
Infrastructure Improvements will be made only after Developer has submitted all documentation
reasonably necessary to substantiate the cost of construction and completing the Developer’s
Phase 1A Infrastructure Improvements associated with that phase, mechanic’s lien free, stop payment
notice free, substantially in accordance with the Approved Drawings and Specifications for the
Developer’s Phase 1A Infrastructure Improvements in all material respects. Final inspection and
sign-off by the inspectors of the Authority with associated mechanic’s lien and stop payment notice
releases (or bonds releasing contested mechanic’s liens or stop payment notices) shall be sufficient
evidence of the mechanic’s lien or stop payment notice free completion of the Developer’s Phase 1A
Infrastructure Improvements.
9.1.6. Final Accounting. Following Completion of the Developer’s Phase 1A
Infrastructure Improvements, Developer shall submit a Final Accounting to the Authority in order to
determine the actual amount of the Developer’s Phase 1A Infrastructure Improvements Costs, the
Stipulated Developer’s Phase 1A Infrastructure Improvements Overhead Amount and Developer’s
Phase 1A Contract Sum. Developer shall also submit all supporting information reasonably
necessary (to the extent not otherwise previously submitted in conjunction with a Developer’s
Phase 1A Payment Request) to document the Developer’s Phase 1A Infrastructure Improvements
Costs, including specific details on the costs and work attributable to the Developer’s Phase 1A
Infrastructure Improvements, including, as applicable, third-party invoices, billings, and receipts for
construction surveying, soil testing, blue printing, actual construction costs, and similar expenses.
Developer shall also submit final lien releases and stop payment notice waivers and releases for all
Developer’s Phase 1A Infrastructure Improvements. Any dispute regarding the Final Accounting
shall be resolved in accordance with Section 26.12.
9.1.6.1. True-up Payments. Within thirty (30) Business Days following a
Final Accounting, the Authority shall determine whether the actual payments made with respect to
the Developer’s Phase 1A Infrastructure Improvements equal the audited approved costs and
expenses and provide the Authority’s report thereon (the “Authority’s Phase 1A Final Review”) to
Developer for Developer’s review and approval. Any dispute regarding the Authority’s Final
Review shall be resolved in accordance with Section 26.12. In the event that the amount of the
Developer’s Phase 1A Contract Sum as determined in the approved Authority’s Final Review (the
Developer’s Phase 1A Final Amount”) exceeds the amount of the actual payments, then the
Authority shall make a true-up payment to Developer for the difference within twenty (20) Business
Days. If the amount of actual payments to Developer exceeds the Developer’s Phase 1A Final
Amount, then Developer shall remit or cause the remittance of the difference to the Authority within
twenty (20) Business Days of a notice of deficiency.
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9.2. Convention Center Costs. The provisions of this Section 9.2 and each subsection of
this Section 9.2 shall apply solely to the Convention Center.
9.2.1. Payment of Costs Associated with the Convention Center. On the Effective
Date, Authority shall pay the Initial Development Fee Payment to Developer. Based upon the
Convention Center Payment Requests submitted to the Authority by the Developer, the Authority
shall make progress payments on account of the Convention Center Contract Sum to the Developer
in accordance with the provisions of this Section 9.2. The amount of each progress payment shall be
computed as follows:
9.2.1.1. The amount of each progress payment shall first include:
a. The Convention Center Costs incurred or to be incurred
by Developer and for which Developer has made or intends to make actual payment prior to the next
Convention Center Payment Request;
b. The Total Convention Center Development Fee that has
accrued as of the date of such Convention Center Payment Request; and
c. The Stipulated Convention Center Overhead Amount that
has accrued as of the date of such Convention Center Payment Request.
9.2.1.2. The amount of each progress payment shall then be reduced by,
without duplication:
a. The aggregate of any amounts previously paid by the
Authority in respect of the Convention Center Contract Sum;
b. The amount by which the Architect, pursuant to the
Architect’s Certificate that is attached to such Convention Center Payment Request, reduces the
amount to be paid with respect to such Convention Center Payment Request. The Architect may
reduce such amount to the extent the work performed by Developer for which payment is requested
has not been performed substantially in accordance in all material respects with the Convention
Center Plans, in which case the amount to be disbursed under the applicable Convention Center
Payment Request shall be reduced to reflect the cost of causing such construction to be performed
substantially in accordance in all material respects with the Convention Center Plans (without
duplication of any similar reduction that is made by Developer). In the event of any such reduction,
Developer may seek payment for the amounts so reduced in any subsequent Convention Center
Payment Request; and
c. Any amount for which the Developer does not intend to
pay General Contractor or any Subcontractor, unless the work has been performed by others the
Developer intends to pay.
9.2.1.3. Maximum Convention Center Amount. The maximum amount
disbursed hereunder for the Convention Center Contract Sum shall not exceed the Maximum
Convention Center Amount. Neither Developer nor its General Contractor nor any Subcontractor,
nor any combination thereof, shall be entitled to payment in respect of the Convention Center
Contract Sum in excess of the Maximum Convention Center Amount. For the avoidance of doubt,
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Repair/Restoration Costs are not included in the Convention Center Contract Sum and shall not be
limited to the Maximum Convention Center Amount, rather such amounts will also be funded from
Net Proceeds transferred to the 2022A Construction Account and other amounts available to the
Developer for Repair/Restoration Costs pursuant to the terms of the Sublease, Facility Lease and
Authority Indenture. Once transferred to the 2022A Construction Account pursuant to the terms of
the Authority Indenture, such Net Proceeds will be disbursed pursuant to the procedures set forth in
Section 9.2.1.
9.2.1.4. Allocation of Common Costs. Common costs shall be reasonably
and equitably allocated between the Developer’s Phase 1A Infrastructure Improvements and the
Convention Center, generally consistently with the allocation of such common costs set forth in the
Form of Convention Center Budget attached hereto as Exhibit P, and such allocations shall be subject
to review and approval by the Port District and City (in their reasonable discretion). All such
common costs shall be tracked and allocated so as to properly distinguish common cost allocations
between the Developer’s Phase 1A Infrastructure Improvements and the Convention Center for
purposes of complying with provisions applicable to the Authority Tax-Exempt Bonds.
9.2.1.5. Funds for Payment of Costs/Expenses.
a. Subject to Section 9.2.1.5(b) and Section 21.7, (i) the
source of funds for the payment of costs and expenses for the Convention Center shall be limited to
A) eligible proceeds of the Taxable Authority Bonds actually on deposit in the 2022A Bond
Proceeds Subaccount, (B) amounts deposited in the Public Entity Contribution Subaccount, and
C) any Net Proceeds authorized to be used for such payments (in an amount not to exceed the
Project Public Investment Amount plus any Net Proceeds or other amounts available therefor
pursuant to the Authority Indenture, the Facility Lease and the Sublease), (D) Advance Rent (to the
extent received by any Public Entity and not paid to Developer pursuant to this Agreement),
E) amounts on deposit or that are required to be on deposit in the Authority Surplus Fund (solely to
the extent provided in Section 21.7), (F) other amounts to the extent provided in Section 21.7, and
G) other amounts deposited by the Developer with the Authority to pay Convention Center Costs
and (ii) no other funds of the City, the Financing District, the Port District, the Authority, or the
County, or monies held by, owed to, or in trust for, the City, the Financing District, the Port District,
the Authority or the County, shall be used by the Authority or sought to be collected by any
Developer Party for the payment of costs and expenses for the Convention Center other than those
identified in this Section. Notwithstanding anything to the contrary set forth in this Agreement, the
failure of the Authority to make payments with respect to the Convention Center Contract Sum in
accordance with the provisions of this Section 9.2 shall not constitute a default or Event of Default of
any Public Entity under this Agreement (or require the payment of default interest by the Authority
to the Developer under this Agreement), only if, and for so long as, such default or Event of Default
occurs because the Authority is unable to disburse such funds, or is unable to cause such funds to be
disbursed, solely because insufficient funds are available in the 2022A Bond Proceeds Subaccount
because (i) a Defaulting Purchaser (as defined in the Bond Purchase Agreement) failed to make any
Advance that (A) is with respect to the 2022A Bonds and (B) the Bond Purchase Agreement required
any Defaulting Purchaser to make, or (ii) Purchasers (as defined in the Bond Purchase Agreement)
are not then required to make additional Advances because the aggregate amount of all Advances (as
defined in the Bond Purchase Agreement) then made is equal to or greater than the corresponding
cumulative amount set forth for the appropriate time period on the Advance Funding Schedule (as
defined in the Bond Purchase Agreement), or (iii) Purchasers are not then required to make
additional Advances because a condition precedent to such Advance is not satisfied pursuant to
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x) Section 4.02(b)(ii) of the Bond Purchase Agreement as a result of an Event of Default described
in any of the following clauses of Section 7.01 of the Bond Purchase Agreement; (e), (f) (but only
with respect to a default or event of default by a Developer Party or the Completion Guarantor), (h),
j) (other than as a result of an Authority Event of Default or a default of any Public Entity under a
Related Document” (as defined in the Bond Purchase Agreement)), (k) (but only if the void,
voidable, unenforceable or illegal provision relates to an obligation of a Developer Party or the
Completion Guarantor and such provision is not rendered void, voidable, unenforceable or illegal
because of any act, circumstance or condition caused by any of the Public Entities), (l) (but only
terminations by Developer or the Completion Guarantor), (n) (but only with respect to insurance
required to be maintained by a Developer Party or the Completion Guarantor), or (o) (but only with
respect to material Governmental Approvals (defined in the Bond Purchase Agreement) required to
be obtained by a Developer Party or the Completion Guarantor pursuant to this Agreement, Ground
Lease, or Sublease, in each case, unless arising from any failure of a Public Entity to perform its
obligations under any Related Document) or (y) Section 4.02(b)(v) of the Bond Purchase Agreement
but only if and to the extent the Authority is unable to make the certification described in
Section 4.02(b)(v) of the Bond Purchase Agreement with respect to Governmental Approvals
required to be obtained by a Developer Party or the Completion Guarantor pursuant to this
Agreement, the Ground Lease, or the Sublease, in each case, unless arising from any failure of a
Public Entity to perform its obligations under any Related Document). For the avoidance of doubt:
a) the absence of sufficient funds in any subaccount of the 2022B Construction Account or the
Authority Existing Revenues Subaccount shall not waive the Authority’s obligation to make
payments to the Developer that are due and payable in accordance with Section 9.1 hereunder, and
b) except as set forth in the preceding sentence and unless and until the full Project Public
Investment Amount (including any interest to the extent payable under Section 9.2) has been
disbursed to Developer pursuant to Section 9.2 (excluding amounts with respect to Advance Rent),
the absence of sufficient funds in any subaccount of the 2022A Construction Account or the Public
Entity Contribution Subaccount shall not waive the Authority’s obligation to make payments to the
Developer that are due and payable in accordance with Section 9.2 hereunder. The Authority shall
not consent to or permit any modification to the Advance Funding Schedule (defined in the Bond
Purchase Agreement) without the consent of the Developer, which shall not be unreasonably
withheld, conditioned, or delayed. This Section 9.2.1.5(a) shall not limit the Developer’s application
of proceeds of Advance Rent to pay for the costs and expenses of the Convention Center.
b. On the Effective Date, Authority shall cause the Trustee
to deposit a portion of the Project Public Investment Amount into the 2022A Construction Account,
as follows: (i) the Authority shall deposit the Initial Advance (as defined in the Indenture) of
Taxable Authority Bonds into the 2022A Bond Proceeds Subaccount, (ii) the City shall transfer to
the Trustee and instruct the Trustee to deposit $9,500,000 into the Public Entity Contribution
Subaccount, and (iii) the Port District shall transfer to the Trustee and instruct the Trustee to deposit
9,500,000 into the Public Entity Contribution Subaccount. Pursuant to the terms of the Authority
Indenture, the Authority shall cause the Trustee to transfer (x) any proceeds of an Advance received
under the Bond Purchase Agreement into such accounts as provided in the Authority Indenture and
y) any Net Proceeds deposited into the Insurance and Condemnation Fund that are available to be
used for repair, rebuilding, restoration or reconstruction of the Convention Center to the 2022A
Construction Account if required pursuant to the terms of the Authority Indenture, the Sublease and
the Facility Lease. The Authority shall take all actions necessary to cause the Trustee to disburse
moneys from the 2022A Construction Account (except as provided in Section 9.2.1.7 below, first
from the 2022A Bond Proceeds Subaccount, until the 2022A Bond Proceeds Subaccount is depleted,
and then from the Public Entity Contribution Subaccount) (a) for payments required to be made to
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the Developer as and when required under this Agreement, the Sublease, the Facility Lease and the
Authority Indenture, including for any repair, rebuilding, restoration or reconstruction of the
Convention Center and (b) until Full Payment, only to Developer. No Public Entity shall interfere
with any lawfully made disbursement request delivered to the Trustee. Amounts in the 2022A Bond
Proceeds Subaccount shall not be applied to redemption of the Authority Bonds, except for the
mandatory redemption of the Authority Bonds on or after June 1, 2027 if and to the extent required
by the Authority Indenture.
c. Until Full Payment, the Authority shall (a) neither direct
nor authorize the Trustee to transfer amounts out of the 2022A Construction Account or the
Authority Surplus Fund for any purpose other than to Developer for payment of the Convention
Center Contract Sum pursuant to Section 9.2 of this Agreement, interest due to Developer pursuant to
Sections 9.2.3 and 9.2.4.2(b) of this Agreement, and amounts to be paid to Developer pursuant to
Section 5.1.3, and (b) direct or authorize the Trustee to transfer amounts out of the 2022A
Construction Account or the Authority Surplus Fund only to the account or accounts designated by
Developer in writing.
d. Until Full Payment, the Authority shall use reasonable
efforts to cause the Trustee to deliver to the Developer and the Authority on a monthly basis
statements for the 2022A Account and the 2022B Account (but not the 2022B Bayfront
Infrastructure Improvements Account or the County Funded Bayfront Infrastructure Improvements
Account) of the Construction Fund showing the account balance and deposits and withdrawals for
the month covered by the statement. If Developer exercises a Sweetwater Park Option, Authority
shall also cause the Trustee to deliver monthly statements for the 2022B Bayfront Infrastructure
Improvements Account of the Construction Fund to Developer showing the account balance and
deposits and withdrawals for the month covered by the statement.
9.2.1.6. Application of Funds. Payments to the Developer made pursuant
to this Section 9.2 shall be made:
a. First, from eligible proceeds of the Taxable Authority
Bonds authorized to be used for such payments, subject to availability of amounts in the 2022A Bond
Proceeds Subaccount; and
b. Second, except as otherwise provided in Section 9.2.1.7
below, upon the exhaustion of the proceeds described in clause a. or if, for any reason, under the
Indenture or the Bond Purchase Agreement, such proceeds are not available to be disbursed, or are
not to be disbursed, at such time, from amounts transferred to the Trustee by the City and Port
District for deposit in the Public Entity Contribution Subaccount (which shall be equal to
19,000,000) and any amounts transferred to replenish the Public Entity Contribution Subaccount;
and
c. Third, upon the exhaustion of the proceeds described in
clause a. and clause b., or sooner if and to the extent elected by the Developer in its sole discretion in
a written notice delivered to the Authority, from the proceeds of Advance Rent received by the
Authority pursuant to the Facility Lease;
d. Solely to the extent provided in Section 21.7, from
amounts on deposit in the Authority Surplus Fund; and
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e. If and as needed in accordance with the terms of the
Sublease, Facility Lease and Authority Indenture, from the Net Proceeds available for use for
Repair/Restoration Costs.
9.2.1.7. Use of Amounts in Public Entity Contribution Subaccount.
Notwithstanding Section 9.2.1.6, Developer may submit a Convention Center Payment Request
which requests disbursement of moneys from the Public Entity Contribution Subaccount prior to
depletion of all proceeds of the Taxable Authority Bonds if insufficient Taxable Authority Bond
proceeds are available in the 2022A Bond Proceeds Subaccount to make a payment of the
Convention Center Contract Sum as required under this Section 9.2. Notwithstanding the provisions
of Section 9.2.2.1 to the contrary, disbursements of moneys from the Public Entity Contribution
Subaccount shall not be conditioned on delivery of an In-Balance Certificate by the Administrative
Agent. Further, if the Executive Director does not respond to a Convention Center Payment Request
which requests disbursement of moneys from the Public Entity Contribution Subaccount prior to
depletion of all proceeds of the Taxable Authority Bonds within ten (10) Business Days after
Developer provides such Convention Center Payment Request to Authority, then such Convention
Center Payment Request shall be deemed to have been approved under protest by the Executive
Director. Concurrently with the delivery of a Convention Center Payment Request which requests
disbursement of moneys from the Public Entity Contribution Subaccount, Developer shall deliver a
RIDA Requisition in the form attached as Exhibit F to the Authority Indenture to the Trustee and the
Authority stating the amount of such Convention Center Payment Request that the Developer is
requesting be paid from the Public Entity Contribution Subaccount. Authority shall provide the
Trustee with a copy of any approval, denial, or request for additional documentation provided to
Developer pursuant to Section 9.2.2.3 in response to such Convention Center Payment Request.
Authority and Developer acknowledge that the Trustee is instructed in the Authority Indenture to
provide written notice to Authority if the Trustee has not received an approval or denial within seven
7) Business Days of receipt of the Developer’s Public Entity Contribution Subaccount Requisition
and to disburse the requested payment to Developer on the tenth (10th) Business Day following
receipt of the RIDA Requisition if Trustee has not received a written denial of the Convention Center
Payment Request on or before the ninth (9th) Business Day following the Trustee’s receipt of the
RIDA Requisition. In the event the amount on deposit in the Public Entity Contribution Subaccount
is less than $19,000,000, future advances of Taxable Authority Bond proceeds made pursuant to the
Bond Purchase Agreement shall be deposited into the Public Entity Contribution Subaccount until
the balance therein equals $19,000,000 and thereafter into the 2022A Bond Proceeds Subaccount.
All other provisions of this Section 9.2 shall apply to all disbursements of moneys from the Public
Entity Contribution Subaccount. All notices provided to Authority under this Section shall be
submitted by email to the Authority Email Addresses with the subject line “Developer Requisition
for Convention Center Costs – Response Deadline [insert response date]” (and Developer shall insert
the date on which the ninth (9th) Business Day following the submittal of the Convention Center
Payment Request in the subject line of the email).
9.2.2. Prerequisites to Payment.
9.2.2.1. Convention Center Payment Request. Prior to the disbursement
or reimbursement of any amounts to pay the Convention Center Contract Sum or Repair/Restoration
Costs, Developer shall provide the Executive Director and the Administrative Agent with a
Convention Center Payment Request, together with all of the items described therein. Each
Convention Center Payment Request shall show (i) the Convention Center Costs or
Repair/Restoration Costs, as applicable, incurred or to be incurred by Developer and for which
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Developer has made or intends to make actual payment prior to the next Convention Center Payment
Request, (ii) the Remaining Convention Center Development Fee computed upon such Convention
Center Costs and (iii) the Stipulated Convention Center Overhead Costs with respect to such
Convention Center Costs and as applicable. The form of Convention Center Payment Request
attached hereto as Exhibit K-2 may be modified or replaced by Developer, subject to the consent of
Authority and Administrative Agent, provided or withheld in the sole discretion of each of the
Authority and the Administrative Agent.
Each Convention Center Payment Request shall be delivered in the following
manner (or by such other means as is reasonably agreed to by the Developer and the Authority):
Developer shall send by electronic mail to the Authority Email Addresses and the Administrative
Agent Email Address a notice that the Convention Center Payment Request and supporting
documentation has been uploaded to an internet website, the link to which shall be included in the
email notice. Authority shall send confirmation to the Developer by electronic mail once Authority
has successfully accessed the Convention Center Payment Request.
The Authority shall not have an obligation to make payment to Developer
unless and until (a) Developer provides the Executive Director with a Convention Center Payment
Request, together with all of the items described therein (including the Architect’s Certificate), and
such Convention Center Payment Request is approved by the Executive Director as provided below
and (b) Administrative Agent delivers to Authority an In-Balance Certificate in the form attached as
Exhibit AA; provided that the Administrative Agent shall be deemed to have submitted such In-
Balance Certificate if the Administrative Agent has not delivered notice to the Authority and
Developer stating that the Project (as defined in the Bond Purchase Agreement) is not In-Balance (as
defined in the Bond Purchase Agreement) on or before six (6) Business Days following the later to
occur of the date on which the Developer delivers (i) the Convention Center Payment Request to the
Authority with a copy to the Administrative Agent and (ii) the Other Requisite Information (defined
in the Bond Purchase Agreement) with respect to such Convention Center Payment Request to the
Administrative Agent.
9.2.2.2. Prevailing Wage Compliance. Developer shall ensure that all
persons and entities providing work or services for the Improvements comply with Prevailing Wage
requirements, as and to the extent described in Section 7.2.3.1.
9.2.2.3. Public Entity Approval. The Executive Director shall review each
Convention Center Payment Request and the supporting documentation. If the Executive Director
finds in his/her reasonable discretion that any such Convention Center Payment Request is
incomplete (except to a de minimis extent) or contains material errors or misstatements on its face,
then the Executive Director shall so inform Developer in writing within ten (10) Business Days after
Developer provides such Convention Center Payment Request to Authority, of the reasons for his/her
finding. Developer shall have the right to respond to such finding by submitting further
documentation requested in such finding after receipt of said finding. The Executive Director shall
review any further documentation received from Developer in support of the Convention Center
Payment Request and inform Developer of his/her approval or denial of the Convention Center
Payment Request within five (5) Business Days after Developer provides such further documentation
to Authority. If the Executive Director does not find that any such Convention Center Payment
Request is incomplete (except to a de minimis extent) or contains material errors or misstatements on
its face, then the Executive Director shall so inform Developer in writing within ten (10) Business
Days after Developer provides such Convention Center Payment Request to Authority and within
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that time period approve the Convention Center Payment Request. If the Executive Director
determines that the Convention Center Payment Request is incomplete (except to a de minimis
extent) or contains material errors or misstatements on its face, but that sufficient and complete
information exists with respect to a portion of the Construction Costs Payment Request, then the
Executive Director shall approve the Convention Center Payment Request with respect to such
portion of the Convention Center Payment Request and so notify Developer within ten (10) Business
Days after Developer provides such Convention Center Payment Request to Authority. The
Authority shall cause the Executive Director to carry out his or her duties under this Section 9.2.2.3
in a reasonable and good faith manner. Notwithstanding anything to the contrary set forth in this
Agreement, (a) the Authority may make payment to Developer under protest and commence dispute
resolution proceedings pursuant to Section 26.12 and (b) if Authority has made a payment to
Developer and later determines that the payment was made in error, whether due to an incomplete or
inaccurate payment request or due to missing documentation or otherwise, Authority may commence
dispute resolution proceedings pursuant to Section 26.12 to challenge such previous payment. A
certificate or request that Developer delivers under this Agreement will be deemed to contain
material errors or misstatements on its face if such material error or omission is apparent from the
four corners of such certificate or request without the use of extrinsic evidence.
9.2.3. Time of Payment. If the Executive Director provides approval pursuant to
Section 9.2.2 with respect to all or any portion of any Convention Center Payment Request, then the
Authority shall cause payment to be made to Developer for the approved costs/expenses associated
with such Convention Center Payment Request to be paid by the Payment Date (excluding any
Convention Center Contested Charges). If the Payment Date falls on a weekend or holiday, the
Payment Date shall be extended to the next Business Day. Except for Convention Center Contested
Charges, all costs/expenses associated with each Convention Center Payment Request shall accrue
interest at the Specified Default Rate from the Payment Date until paid. At the request of the
Authority, the Developer will waive the interest accrued during the first ten (10) Business Days
following the applicable Payment Date up to a total of four (4) times in each calendar year for
payments made after the required Payment Date under this Section 9.2.3 and Sections 9.1.3,
9.1.4.3(b) and 9.2.4.2(b). Any payment or portion thereof made to Developer in accordance with a
Convention Center Payment Request and later determined by the Authority and Developer or by an
arbitrator after dispute resolution pursuant to Section 26.12 to have been incorrectly made shall
accrue interest at the Specified Default Rate from the date the Authority made the payment until the
date the Developer returns such payment together with such interest thereon to the Authority.
Developer shall pay the amount of the incorrect payment or portion thereof plus such accrued interest
to Authority within ten (10) Business Days following the determination that such payment was
incorrectly made to Developer, or, with the written approval of the Executive Director, such amounts
shall be deducted from the following Convention Center Payment Request(s) submitted by the
Developer. Subject to Section 21.7, additional costs incurred by the Developer in excess of the
amount of interest paid to Developer pursuant to Sections 9.2.3 and 9.2.4.2(b) (calculated as if
interest at the Specified Default Rate had accrued during the ten (10) Business Day cure periods
described in such Sections 9.2.3 and 9.2.4.2(b) and was not waived by Developer) that, in each case,
result from the failure to make payments when required by this Agreement will be the obligation of
the Authority.
9.2.3.1. Advance Rent Notices. In the event that the payment required
pursuant to Section 9.2.3 will be made, in whole or in part, from the proceeds of Advance Rent
received by the Authority under the Facility Lease, then the Authority shall, no later than two (2)
days after submitting the applicable approval described in Section 9.2.2, provide a Facility Lease
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Advance Rent Notice to the City for the amount of Advance Rent required to make such payment.
Except as set forth in this Section 9.2.3.1 or in Section 9.2.6.1, (a) the Authority shall not, without the
Developer’s prior written consent, provide a Facility Lease Advance Rent Notice to the City and
b) the City shall not, without the Developer’s prior written consent, provide a Sublease Advance
Rent Notice to the Developer unless the City shall have received a corresponding Facility Lease
Advance Rent Notice from the Authority. As provided in the Sublease, if Developer receives a
notice from the City confirming that the City assigned to the Authority its right to receive the
payment of Advance Rent under the Sublease, then, from and after the date of the receipt of such
notice, Developer shall pay Advance Rent to the Authority as the City’s assignee. The Parties
acknowledge that additional procedures regarding the payment of Advance Rent are set forth in the
Payment Direction Agreement.
9.2.3.2. Additional Costs. Any costs that may accrue, such as interest on
late payments to the General Contractor, Subcontractors, suppliers, or consultants as a result of the
Developer’s failure to make a payment to such parties shall not be the obligation of the Authority if
the Authority has timely made all required payments to Developer or Developer has failed to provide
the corresponding complete Convention Center Payment Request to Authority. Such additional costs
shall be the obligation of the Developer and not eligible for reimbursement.
9.2.4. Withholding and Contested Charges.
9.2.4.1. Payment and Invoicing for Withholding. Where a stop payment
notice or mechanic’s lien has been filed following the recordation of the Notice of Completion,
Developer shall, to the extent in compliance with Law, withhold the amount in controversy until a
fully executed release of stop payment notice or mechanic’s lien or a bond releasing the stop
payment notice or mechanic’s lien has been filed and a conformed copy delivered to the Authority, as
applicable. Notwithstanding anything in this Agreement to the contrary, Developer shall not be
required to withhold any funds from the General Contractor or any Subcontractor to the extent doing
so would violate any applicable law.
9.2.4.2. Convention Center Contested Charges. In the event the Authority
contests whether any amount that is included in any Convention Center Payment Request is properly
included in the Convention Center Contract Sum or as a Repair/Restoration Cost (“Convention
Center Contested Charges”), the Authority shall provide Developer a written statement of the
Convention Center Contested Charges, the reason why the costs/expenses are contested, and a
proposed resolution.
a. Appeal to the Executive Director. Developer may appeal
the determination by the Authority of any Convention Center Contested Charges. The appeal must
be received within thirty (30) days after the Authority notifies the Developer of such Convention
Center Contested Charge. During the appeal period, and as long as any Convention Center Contested
Charge remains disputed, Developer shall proceed with the development of the Project (or repair and
restoration of the Convention Center, as applicable), and the Authority shall compensate Developer
for all amounts requested under the Convention Center Payment Request at issue other than the
Convention Center Contested Charges. If, following the appeal, the Executive Director determines
that any Convention Center Contested Charges are eligible for reimbursement, such amounts shall be
included in the next payment to Developer. If the Parties involved in the dispute regarding
Convention Center Contested Charges are unable to agree and settle such dispute within ten (10)
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Business Days after the commencement of the appeal period, then the Parties shall resolve the
conflict pursuant to Section 26.12.
b. Interest. All Convention Center Contested Charges shall
accrue interest at the Specified Default Rate from the Payment Date that would have been applicable
to such Convention Center Contested Charges if such Convention Center Contested Charges were
approved for payment until the date on which such Convention Center Contested Charges are paid to
Developer; provided, that no interest shall be paid to Developer with respect to any Convention
Center Contested Charges that are finally determined to be ineligible for reimbursement or payment
to Developer. At the request of the Authority, the Developer will waive the interest accrued during
the first ten (10) Business Days following the applicable Payment Date up to a total of four (4) times
in each calendar year for payments made after the required Payment Date under this Section
9.2.4.2(b) and Sections 9.1.3, 9.1.4.3(b) and 9.2.3.
9.2.5. Cutoff for Submission of Invoices. Except with respect to any Convention
Center Payment Request for Repair/Restoration Costs, Developer shall submit its final Construction
Costs Payment Request not later than the Cutoff Date. Any Construction Costs Payment Requests
other than those for Repair/Restoration Costs) submitted after the Cutoff Date shall not be reviewed
or included in the Project Costs for the Convention Center. The final payment by the Authority, for
the Project or for Repair/Restoration Costs, as applicable, will be made only after Developer has
submitted all documentation reasonably necessary to substantiate the cost of construction and
completing or restoring/repairing, as applicable, the Convention Center associated with that phase,
mechanic’s lien free, stop payment notice free, substantially in accordance with the Convention
Center Plans in all material respects. Final inspection and sign-off by the inspectors of the Authority
with associated mechanic’s lien and stop payment notice releases (or bonds releasing contested
mechanic’s liens or stop payment notices) shall be sufficient evidence of the mechanic’s lien or stop
payment notice free completion of the Convention Center.
9.2.6. Final Accounting. Following Completion of the Convention Center,
Developer shall submit a Final Accounting to the Authority in order to determine the actual amount
of the Convention Center Costs and Convention Center Contract Sum. Developer shall also submit
all supporting information reasonably necessary (to the extent not otherwise previously submitted in
conjunction with a Convention Center Payment Request) to document the Convention Center Costs,
including specific details on the costs and work attributable to the Convention Center, including, as
applicable, third-party invoices, billings, and receipts for construction surveying, soil testing, blue
printing, actual construction costs, and similar expenses. Developer shall also submit final lien
releases and stop payment notice waivers and releases for the Convention Center. Any dispute
regarding the Final Accounting shall be resolved in accordance with Section 26.12.
9.2.6.1. True-up Payments. Within thirty (30) Business Days following a
Final Accounting, the Authority shall determine whether the actual payments made with respect to
the Convention Center equal the audited approved costs and expenses and provide the Authority’s
report thereon (the “Authority’s Convention Center Final Review”) to Developer for Developer’s
review and approval. Any dispute regarding the Authority’s Convention Center Final Review shall
be resolved in accordance with Section 26.12. In the event that the amount of the Convention Center
Contract Sum as determined in the Authority’s Final Review (the “Convention Center Final
Amount”) exceeds the amount of the actual payments, then: (a) the Authority shall make a true-up
payment to Developer for the difference within twenty (20) Business Days and (b) in the event that
the payment required pursuant to clause (a) will be made, in whole or in part, from the proceeds of
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Advance Rent received by the Authority under the Facility Lease, then the Authority shall, no later
than two (2) Business Days after the final determination of the Convention Center Final Amount,
provide an Advance Rent Notice to the City under the Facility Lease for the amount of Advance Rent
required to make such payment. If the amount of actual payments to Developer exceeds the
Convention Center Final Amount, then Developer shall remit or cause the remittance of the
difference to the Trustee as assignee of the Authority for deposit in the Revenue Fund under the
Authority Indenture within twenty (20) Business Days of a notice of deficiency.
9.2.6.2. Final Accounting and True-up for Repair/Replacement Costs. If
requested by either the Authority or Developer not later than one (1) year following payment to
Developer of the final Repair/Replacement Costs incurred as a result of any Condemnation as
provided in Section 5.1 of the Sublease, the Developer shall submit a Final Accounting which shall
be processed to resolution in a similar manner to the Final Accounting described in Sections 9.2.6
and 9.2.6.1 for Convention Center Costs. There will be no Final Accounting with respect to a
casualty event pursuant to Section 5.2 of the Sublease.
9.2.7. Casualty and Condemnation. While the disbursement provisions of this
Section 9.2 have been drafted primarily to address the disbursement of funds for the development of
the Convention Center, the Parties intend that the provisions of this Section 9.2 (with the exception
of Subsections 9.2.5 which will not be applicable in such context) will also govern the disbursement
of funds for the reconstruction or modification of the Convention Center following any event of
damage to or destruction of, or condemnation or eminent domain with respect to, any portion of the
Convention Center. As such, when the provisions of this Section 9.2 (with the exception of
Subsections 9.2.5) are given effect in connection with such reconstruction or modification, such
provision will be construed with the intent that Developer be able to access funds for such purposes,
and the provisions of this Section 9.2 (with the exception of Subsections 9.2.5) will be deemed
modified as reasonably necessary to give effect to such intent. Net Proceeds not disbursed pursuant
to this Section 9.2 shall be disbursed pursuant to Article V of the Sublease and Section 6.1(a) of the
Facility Lease.
9.3. Investment of Amounts in the Construction Fund. The Parties acknowledge that
proceeds of the Authority Bonds and Net Proceeds on deposit from time to time in the Construction
Fund and the Insurance and Condemnation Fund will be invested in Permitted Investments pursuant
to, and as defined in, the Authority Indenture. The Authority agrees to provide the Developer an
opportunity to provide recommendations regarding the Permitted Investments in which amounts on
deposit in the Construction Fund and the Insurance and Condemnation Fund will be invested by
providing the Developer with ten (10) days’ notice prior to directing the Trustee to change the
investment of such funds.
9.4. Calculation of Specified Default Rate. All interest at the Specified Default Rate shall
compound on a monthly basis on the first day of each full calendar month in which such interest is
payable.
9.5. Redemption of Authority Bonds and Certain Amendments Prior to Full Payment.
Prior to Full Payment, and provided that no Event of Default by Developer has occurred and is
continuing:
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9.5.1. The Authority shall not deliver a Request described in the last sentence of
Section 4.4 of the Indenture for transfers out of the Authority Surplus Fund for purposes other than
payments to Developer pursuant to Sections 5.1.3 and 9.2 hereof.
9.5.2. The Authority shall not redeem the Authority Bonds in whole or in part,
unless:
9.5.2.1. Except for the mandatory redemption of the 2022 Bonds pursuant
to Section 2.2(c) of the Authority Indenture, no Advances remain to be disbursed to Authority under
the Bond Purchase Agreement; and
9.5.2.2. Except for the mandatory redemption of the 2022 Bonds pursuant
to Section 2.2(c) of the Authority Indenture, immediately following such redemption, all amounts on
deposit in the 2022A Account and 2022B Account of the Construction Fund and the Authority
Existing Revenues Account (in the case of the Authority Existing Revenues Account, in an amount
up to $3,000,000) immediately prior to such redemption shall remain on deposit in the 2022A
Account and 2022B Account of the Construction Fund and the Authority Existing Revenues
Account, respectively, under the Authority Indenture, or shall be held in an escrow with an escrow
holder that meets the financial standards for a replacement trustee under the Authority Indenture and
pursuant to a commercially reasonable escrow agreement providing substantially the same
requirements for disbursement of, such moneys; and
9.5.2.3. the interest rate on any Additional Bonds issued to redeem
Authority Bonds shall not exceed the Default Rate (as such term is defined in the Bond Purchase
Agreement) and the principal payments on such Additional Bonds shall not exceed, in any one fiscal
year, one thirty-fifth (1/35) of the total original principal amount of the Authority Bonds issued on
the Effective Date; provided that the restriction set forth in this Section 9.5.2.3 shall not apply if the
Resort Hotel, Parking Improvements, and Convention Center are Complete.
9.5.3. The Authority shall not, without Developer’s prior written consent, which
consent shall not be unreasonably withheld, conditioned or delayed, terminate the Bond Purchase
Agreement, Indenture, Support Agreement or Loan Agreement or amend or modify the Bond
Purchase Agreement, Indenture, Support Agreement or Loan Agreement in any manner that results in
a material adverse effect on the Developer (“Material Adverse Effect”). For purposes of this
Section 9.5.3, a Material Adverse Effect shall only include (a) unless and until the Resort Hotel,
Parking Improvements, and Convention Center are Complete, amendments to the Bond Purchase
Agreement or Indenture that impose an interest rate or default rate on the Authority Bonds or
Additional Bonds that exceeds the Default Rate (as such term is defined in the Bond Purchase
Agreement) or that provide for principal payments on the Authority Bonds or Additional Bonds that
exceed, in any fiscal year, one thirty-fifth (1/35) of the total original principal amount of the
Authority Bonds issued on the Effective Date; and (b) amendments to the Bond Purchase Agreement,
Indenture, Support Agreement or Loan Agreement that reasonably could be expected to (i) reduce the
amount of Revenues or bond proceeds then on deposit or that will be deposited into any of the funds
and accounts maintained under the Indenture from which Developer is to receive payment of
Developer’s Phase 1A Infrastructure Improvements Costs pursuant to Section 9.1 hereof or
Convention Center Costs pursuant to Section 9.2 hereof or (ii) directly or indirectly place any
additional or more onerous restrictions on the disbursement of moneys, or materially increase the risk
that moneys will not be disbursed in a timely manner, to the Developer from the funds and accounts
maintained under the Indenture.
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9.6. Survival. With respect to any amounts that constitute part of Developer’s Phase 1A
Contract Sum or the Convention Center Contract Sum that have been incurred by Developer but have
not been paid or reimbursed to Developer pursuant to this Article IX, this Article IX and Section 21.7
shall survive the prior expiration and/or termination of this Agreement.
ARTICLE X
ACCEPTANCE OF IMPROVEMENTS
10.1. Developer’s Phase 1A Infrastructure Improvements. If Developer’s Phase 1A
Infrastructure Improvements are Completed by Developer substantially in accordance in all material
respects with the Approved Drawings and Specifications, if they comply with all Laws and
Construction Requirements, and if Developer has satisfied all conditions of Acceptance set forth in
Section 10.1.1, the City and the Port District shall Accept their respective Developer’s Phase 1A
Infrastructure Improvements. Section 10.3, not this Section 10.1, governs Acceptance of the
Remaining Phase 1A Infrastructure Improvements.
10.1.1. Conditions of Acceptance. Prior to Acceptance of any portion of
Developer’s Phase 1A Infrastructure Improvements, Developer shall, as applicable:
10.1.1.1. Complete all punch-list items from the City’s inspection of
Developer’s Phase 1A Infrastructure Improvements.
10.1.1.2. Record a Notice of Completion (NOC) with the County Recorder
of San Diego County at least thirty-five (35) days prior to Acceptance of such portion of Developer’s
Phase 1A Infrastructure Improvements.
10.1.1.3. Submit to Port District and to the City, as applicable, the
following with respect to such portion of Developer’s Phase 1A Infrastructure Improvements, as
applicable:
a. Record drawings or “as-builts” in the form of final as-
built CAD files; and
b. Copies of the signed as-built mylars that are submitted to
the City (a copy of which shall be provided to the Port District).
c. With respect to City, evidence that adequate funds are
available in City’s deposit account to cover City’s project close out costs with respect to permitting;
d. With respect to City, record drawings or “as-builts” in the
form of signed as-built mylars, and with respect to Port District, copies of such signed “as-builts”;
e. One set of final soils reports (“as-graded” Geotech
report);
f. Completed City Form 5519 Certification;
g. Completed City Form 5522 Statement of Substantial
Conformance;
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h. Operations and maintenance manuals; and
i. Warranty documentation.
10.1.1.4. Submit to Port District or City, as applicable, documentation and
information reasonably necessary for Port District or City, as applicable, to provide the following
items to Developer with respect to such portion of Developer’s Phase 1A Infrastructure
Improvements, as applicable:
a. Approval from Port District’s or City’s Land Surveyor, as
applicable, confirming survey monuments are set and verified (as applicable);
b. Confirmation that street lights are fully functional; and
c. Written approval from Port District’s or City’s NPDES
section, as applicable, confirming stormwater requirements have been satisfied.
Subject to Section 2.1.6.4, upon receipt of the documentation and information set forth in this
Section 10.1.1.4, City and Port District, as applicable, shall take all actions reasonably required to
provide the foregoing items to Developer.
10.1.2. Acceptance Notice and Confirmation of Acceptance. When Developer
reasonably determines that the conditions for Acceptance of any component of Developer’s Phase 1A
Infrastructure Improvements have been satisfied, Developer will provide written notice thereof to
Authority, with a copy to the Administrative Agent (an “Acceptance Notice”). Each of the City and
the Port District, as applicable, shall either confirm its Acceptance (in its reasonable discretion) of
such component of Developer’s Phase 1A Infrastructure Improvements or set forth the reasons for
denying its Acceptance within ten (10) Business Days after Authority’s receipt of such Acceptance
Notice. If the City or the Port deny Acceptance, then Developer shall take such steps as may be
reasonably necessary to address the City’s reasons or the Port District’s reasons (as applicable) for
denying its Acceptance and submit a new Acceptance Notice to Authority and the foregoing process
shall continue on an iterative basis (and City and the Port District, as applicable, shall have ten (10)
Business Days to respond to each Acceptance Notice) until the City or the Port District, as
applicable, have confirmed that Acceptance of such component has occurred.
10.2. Convention Center. When Developer determines that the Convention Center is
Complete, Developer will provide a copy of its certificate of occupancy or temporary certificate of
occupancy to Authority, with a copy to the Administrative Agent, and the Authority shall confirm its
Acceptance of the Convention Center within five (5) Business Days after Authority’s receipt of such
copy of such certificate of occupancy or temporary certificate of occupancy.
10.3. Sweetwater Park. This Section applies only if Developer exercises a Sweetwater
Park Option.
10.3.1. When Developer reasonably determines that the conditions for Sweetwater
Park to be Sufficiently Complete have been satisfied, Developer will provide written notice thereof to
Port District (a “Sufficient Completion Notice”). Port District shall either confirm Sufficient
Completion (in its sole and good faith discretion) of Sweetwater Park or set forth the reasons for
denying that Sweetwater Park is Sufficiently Complete within ten (10) Business Days after Port
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District’s receipt of such Sufficient Completion Notice. If Port District denies that Sweetwater Park
is Sufficiently Complete, then Developer shall take such steps as may be reasonably necessary to
address the Port District’s reasons for such denial and submit a new Sufficient Completion Notice to
Port District and the foregoing process shall continue on an iterative basis (and Port District shall
have ten (10) Business Days to respond to each Sufficient Completion Notice) until the Port District
has confirmed that Sufficient Completion of Sweetwater Park has occurred.
10.3.2. Following Sufficient Completion and prior to Acceptance, Developer shall
complete any remaining punch-list items, record a notice of completion with the County Recorder of
San Diego County, and deliver to the Port District (i) “as-built” or record drawings, (ii) final soils
report (“as-graded” Geotech report), (iii) operations and maintenance manuals (if applicable), and
iv) all applicable warranty documentation. When Developer reasonably determines that Sweetwater
Park has been Sufficiently Completed and the conditions to Acceptance described above in this
Section have been satisfied, Developer will provide written notice thereof to the Port District (an
Acceptance Notice”). Port District shall either confirm its Acceptance (in its reasonable discretion)
of Sweetwater Park or set forth the reasons for denying its Acceptance within ten (10) Business Days
after Port District’s receipt of such Acceptance Notice. If Port District denies Acceptance, then
Developer shall take such steps as may be reasonably necessary to address the Port District’s reasons
for denying its Acceptance and submit a new Acceptance Notice to Port District and the foregoing
process shall continue on an iterative basis (and Port District shall have ten (10) Business Days to
respond to each Acceptance Notice) until the Port District has confirmed that Acceptance of such
component has occurred. Developer may provide an Acceptance Notice in addition or in lieu of
providing a Sufficient Completion Notice pursuant to Section 10.3.1.
ARTICLE XI
WARRANTIES
11.1. Enforcement of Warranties. Upon Acceptance of each applicable Developer’s
Phase 1A Infrastructure Improvement, Developer shall assign any manufacturer’s warranties to the
Public Entity accepting ownership of such applicable Developer’s Phase 1A Infrastructure
Improvements. Until such improvements are assigned to the applicable Public Entity, Developer
shall enforce for the Authority’s benefit all warranties provided in the Contract Documents with
respect to such improvements and any other explicit warranties with respect to such improvements.
11.1.1. Materials and Workmanship. Developer shall require its General
Contractor and Subcontractor(s) to warrant all work on the Project against Defective Work for a
period of one (1) year following the date of Completion.
11.1.2. New Materials and Equipment. Developer shall require its General
Contractor and Subcontractor(s) to warrant and guarantee to Authority that all materials and
equipment incorporated into the Project are new unless otherwise specified.
11.1.3. Documentation. Developer shall furnish, or cause its General Contractor to
furnish, the Public Entities with all warranty and guarantee documents prior to Acceptance.
11.2. Term of Warranties. Unless otherwise specified or provided by Law, warranties shall
extend for a term of one (1) year following the date of Completion, except that, with respect to the
Convention Center, the warranties shall extend for one year after the Convention Center is
substantially complete in accordance with the Contract Documents (excluding, for the avoidance of
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doubt, punch list items, so that the Convention Center can be occupied or utilized for its intended use
the “Warranty Period”).
11.3. Additional Warranties. In addition to the warranties set forth in this Article,
following Acceptance, Developer or its General Contractor shall assign to the Public Entities any and
all other manufacturer’s or installer’s warranties for equipment or materials not manufactured by the
General Contractor provided as part of the work related to the Developer’s Phase 1A Infrastructure
Improvements, to the extent that such third-party warranties are assignable and extend beyond the
Warranty Period. Developer shall furnish, or cause its General Contractor to furnish, the Public
Entities with all warranty and guarantee documents with respect to Developer’s Phase 1A
Infrastructure Improvements prior to Acceptance.
ARTICLE XII
DEFECTIVE WORK
12.1. Correction, Removal, or Replacement. The Developer shall require that if, within the
Warranty Period, the Authority determines the Developer’s Phase 1A Infrastructure Improvements
contain Defective Work and provides written notice thereof to the Developer, the Developer’s
General Contractor or applicable Subcontractor, as applicable, shall promptly correct, repair, or both
remove and replace the Defective Work as determined by Developer in its sole discretion.
12.2. Extension of Warranty. With respect to the Developer’s Phase 1A Infrastructure
Improvements (excluding plant materials), when Defective Work, or damage therefrom, has been
corrected, repaired, replaced or removed, as applicable, during the initial Warranty Period, the
Warranty Period for such Defective Work will be extended for an additional time period equal to that
of the initial Warranty Period, after the date of the satisfactory completion of the correction, repair,
replacement or removal, as applicable, but, in no event, beyond the earlier to occur of (a) one (1) year
after the date of the expiration of the initial Warranty Period or (b) two (2) years after Acceptance of
the applicable Improvement.
12.3. Right of Authority to Correct. In the event of the Developer’s failure, its General
Contractor’s failure, or such Subcontractor’s failure, as applicable, to adhere to Section 12.1 within
thirty (30) days after Developer receives notice of such Defective Work from the Authority (provided
that, if the nature of such Defective Work is such that the same cannot reasonably be corrected,
repaired or replaced within such thirty (30) day period, and Developer diligently commences to
perform such work within such thirty (30) day period and thereafter diligently proceeds with such
work, then such thirty (30) day period shall be extended for as long as reasonably necessary to
complete such work) or in the event of an emergency or immediate threat to public safety, Developer
shall as promptly as practicable correct, remove, or replace the Defective Work or, if Developer does
not do so, the Authority may, in its sole and absolute discretion, notify Developer in writing and then
the Authority may correct, remove, or replace the Defective Work. In such circumstances, the costs
payable to the Developer shall be reduced by the actual cost incurred by the Authority to correct,
remove or replace the Defective Work.
12.4. No Limitation on Other Remedies. Exercise of the remedies for Defective Work
pursuant to this Article XII shall not limit the remedies the Authority may pursue under this
Agreement or at law or equity.
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12.5. Disputes. If Developer and Authority are unable to reach agreement on disputed
work, the Authority may direct Developer to proceed with the work and compensate Developer for
undisputed amounts. Payment of disputed amounts shall be as later determined in accordance with
Section 26.12. Developer shall maintain and keep all records relating to disputed work for a period
of three (3) years in accordance with Article XVI.
12.6. Applicability. This Article XII shall not apply with respect to the Convention Center.
ARTICLE XIII
SECURITY FOR CONSTRUCTION
13.1. Bonds. The Contract Documents for the Developer’s Phase 1A Infrastructure
Improvements shall require each General Contractor to provide a performance bond on a form
reasonably acceptable to the Authority for the construction of the Developer’s Phase 1A
Infrastructure Improvements and the aggregate amount of such bond will be no less than the amount
payable pursuant to the General Contracts with respect to Developer’s Phase 1A Infrastructure
Improvements. Developer shall cause each of the Authority, the Trustee, the Senior Permitted
Mortgage Lender, and the Senior Permitted Mezzanine Lender to be named as a co-obligees of such
performance bond. Developer shall provide a payment bond on a form reasonably acceptable to
Authority for the construction of the Developer’s Phase 1A Infrastructure Improvements in the total
amount set forth on the Developer’s Phase 1A Infrastructure Improvements Budget. Developer shall
deliver copies of the payment bond and performance bond to the Authority and each other co-obligee
prior to commencement of construction for the Developer’s Phase 1A Infrastructure Improvements.
With respect to any portion of the Developer’s Phase 1A Infrastructure Improvements, Developer
shall ensure that (a) the payment bond is maintained though the period of time required by California
Civil Code Section 9558 and (b) the performance bond is maintained for at least one (1) year
following Acceptance of such portion of the Developer’s Phase 1A Infrastructure Improvements,
provided however that Developer may replace a performance bond with a warranty bond which shall
remain in effect for the initial Warranty Period, subject to reasonable approval of the form of such
warranty bond by the Public Entity accepting such Developer Phase 1A Infrastructure Improvements.
The Contract Documents for the Convention Center shall require each General Contractor to
provide a performance bond on a form reasonably acceptable to the Authority for the construction of
the Convention Center and the aggregate amount of such bonds will be no less than the amount
payable pursuant to the General Contracts with respect to the Convention Center. Developer shall
cause each of the Authority, the Trustee, the Senior Permitted Mortgage Lender, and the Senior
Permitted Mezzanine Lender to be named as a co-obligees of such performance bond. Developer
shall provide a payment bond on a form reasonably acceptable to Authority for the construction of
the Convention Center in the total amount set forth on the Convention Center Budget. Developer
shall deliver copies of the payment bond and performance bond to the Authority and each other co-
obligee prior to commencement of construction for the Convention Center. Developer shall ensure
the payment bond is maintained though the period of time required by California Civil Code Section
9558. Developer shall ensure the performance bond is maintained until such time as the Convention
Center is Complete.
If the estimated amount payable to a General Contractor pursuant to its General Contract is
increased, the Developer shall advise such General Contractor and the surety of the increased amount
and the payment bond shall be increased accordingly. Under no circumstances shall the payment
bond surety be released from liability to those for whose benefit such bond has been given, by reason
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of any breach of contract between the Developer and such General Contractor or on the part of any
obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person
described in Civil Code Section 9100, and has not been paid the full amount of such person’s claim.
13.2. Insolvency or Bankruptcy. If the surety on any of the above-mentioned bonds
pertaining to Developer’s Phase 1A Infrastructure Improvements is declared bankrupt, becomes
insolvent (as defined in Insurance Code Section 985), or its right to do business is terminated in the
State of California, Developer shall, within fifteen (15) Business Days after Developer’s actual
knowledge or receipt of notice from the Authority, substitute or require the substitution of another
bond and surety, reasonably acceptable to the Authority, to the extent a replacement bond is
commercially available.
If the surety on any of the above-mentioned bonds pertaining to the Convention Center is
declared bankrupt, becomes insolvent (as defined in Insurance Code Section 985), or its right to do
business is terminated in the State of California, Developer shall within fifteen (15) Business Days
after Developer’s actual knowledge or receipt of notice from the Authority substitute or require the
substitution of another bond and surety, reasonably acceptable to the Authority, to the extent (i) a
replacement bond is commercially available and (ii) the cost of such replacement bond does not
exceed one hundred ten percent (110%) of the portion of the cost of the original bond that is fairly
allocable to the portion of the Convention Center that has not then been completed. The Parties
acknowledge that the bonds required by Section 13.1 must be in place throughout the period of time
required by Section 13.1 and, to that end, in the event replacement bonds are needed for the reasons
described in the immediately preceding sentence but the thresholds set forth in clauses (i) and (ii) of
the immediately preceding sentence are not met, the Parties shall meet and confer to determine how
the Parties can replace the subject bonds or potentially obtain an alternative form of security;
provided that Developer shall not be required to obtain any such replacement bond or alternative
security unless the Parties mutually agree, and in no event shall the cost to the Developer of any
replacement bond or alternative security exceed the cost threshold set forth in clause (ii) of the
immediately preceding sentence.
13.3. Calling a Bond.
13.3.1. Developer acknowledges and agrees that if Developer’s construction of
Developer’s Phase 1A Infrastructure Improvements has not been performed in accordance with
Section 5.1 or if the Developer has failed to cure any Defective Work within a commercially
reasonable time after Developer’s receipt of notice pursuant to Section 12.1 (subject to the notice and
cure periods set forth in Section 12.3), and, in each case, such failure constitutes a breach by the
General Contractor under the applicable Contract Documents, the Authority may use the
performance bond referenced in Section 13.1 above to complete Developer’s Phase 1A Infrastructure
Improvements. This remedy is not a limitation on remedies of the Authority, as applicable. and is in
addition to any other remedy that the Authority may have at law or in equity.
13.3.2. Developer acknowledges and agrees that if Developer’s construction of the
Convention Center has not been completed in accordance with Section 5.1 or if the Developer has
failed to cure any Defective Work within a commercially reasonable time after Developer’s receipt
of notice pursuant to Section 12.1 (subject to the notice and cure periods set forth in Section 12.3),
and, in each case, such failure constitutes a breach by the General Contractor under the applicable
Contract Documents, the Authority may use the performance bond referenced in Section 13.1 above
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to complete the Convention Center. This remedy is not a limitation on remedies of the Authority and
is in addition to any other remedy that the Authority may have at law or in equity.
ARTICLE XIV
INDEMNITY AND DUTY TO DEFEND
14.1. General Indemnity. To the maximum extent allowed by law, Developer hereby
indemnifies and shall defend the Authority, the Port District Parties and the City Parties, at
Developer’s sole cost and expense and with counsel reasonably selected by the Public Entities and
reasonably approved by Developer, and hold the Authority, the Port District Parties, and the City
Parties harmless from any and all claims (including claims under negligence and strict liability),
demands, liability, losses, causes of actions and suits of any kind, administrative or judicial
proceedings, orders, judgments, and all Related Costs arising directly or indirectly out of (i) the
performance by Developer of its obligations under this Agreement, (ii) the construction of any
Improvements and (until Acceptance) the Developer’s Phase 1A Infrastructure Improvements,
iii) any breach by Developer of its obligations under this Agreement, (iv) any accident, injury or
damage whatsoever caused to any Person or the property of any Person on or about the Project Site
or at the Improvements or (until Acceptance) the Developer’s Phase 1A Infrastructure
Improvements; or (v) the use, occupancy, possession or operation of the Project Site and the
Improvements and (until Acceptance) the Developer’s Phase 1A Infrastructure Improvements by any
Developer Party or Hotel Operator, or any acts or omissions of any Developer Party or Hotel
Operator, in each case, except for claims or litigation arising through the sole gross negligence or
willful misconduct of the Authority, any Authority Party, any Port District Party (including, without
limitation, with respect to the Remaining Phase 1A Infrastructure Improvements) or City Party (but
subject to Section 15.4); provided, that the sole gross negligence or willful misconduct of one Public
Entity Party with respect to any Public Entity shall not be attributed to or affect the rights of any
Public Entity Party with respect to any other Public Entity under this Section 14.1. The foregoing
indemnity, defense and hold harmless obligations of Developer shall not include any claims
including claims under negligence and strict liability), demands, liability, losses, causes of actions
and suits of any kind, administrative or judicial proceedings, orders, judgments, and all Related Costs
arising directly or indirectly out of (w) the Project’s failure or alleged failure to comply with
Section 15 and Exhibit 3 of the Settlement Agreement or any other document implementing or
duplicating Section 15 and Exhibit 3 of the Settlement Agreement, provided that Developer has
satisfied its obligations under Section 5.8, Exhibit O, and any other agreement entered into between
the Port District and/or City with Developer regarding the subject of this subsection (w), (x) any
Person’s failure to comply with any applicable provisions of the PWL with respect to any work
performed by, or on behalf of, any Port District Party (other than by a Developer Party or Hotel
Operator, or on behalf of a Developer Party or Hotel Operator, or by any Person acting directly or
indirectly under a contract with a Developer Party or Hotel Operator), (y) the Remaining Phase 1A
Infrastructure Improvements or any development, construction or use thereof or activity thereon
other than by Developer or a Developer Party or (z) any use, development or construction of any
portion of the Developer’s Phase 1A Infrastructure Improvements after Acceptance thereof,
excluding (1) claims pursuant to Articles XI and XII and (2) claims that arise directly or indirectly
out of any act or omission of a Developer Party or Hotel Operator. If a Public Entity determines in its
reasonable discretion that there is a conflict of interest with Developer’s counsel representing such
Public Entity and Developer, or that there is a conflict of interest with counsel representing such
Public Entity and the other Public Entities, then such Public Entity, at its election, may conduct its
own defense with its own counsel that is reasonably selected by the Public Entity, reasonably
approved by Developer, and independent from Developer’s counsel (and in that event Developer will
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select its own counsel) and the reasonable costs incurred by the applicable Public Entity in such
defense shall be covered by the foregoing indemnification, hold harmless and defense obligations
and be subject to reimbursement pursuant to the Reimbursement Procedure. The terms of this Section
14.1 shall survive the expiration or earlier termination of this Agreement. The foregoing indemnity
obligations of Developer are in addition to, and not in limitation of, any other indemnity obligations
of Developer contained in this Agreement or any other agreement between any of the Public Entities
and Developer. Notwithstanding the foregoing, Section 19.2.3, and not this Section 14.1, shall apply
to the reimbursement of any fees or expenses incurred by Public Entities in connection with a Tax
Claim. Notwithstanding anything to the contrary in this Section, Developer shall have no obligation
to pay or reimburse any Public Entity for costs incurred by such Public Entity that such Public Entity
would have been obligated to pay without any express right to reimbursement by Developer, or for
which such Public Entity would have been obligated to reimburse Developer, pursuant to this
Agreement or the Sublease.
14.2. Damage to Other Properties. The indemnification and agreement to hold harmless set
forth in Section 14.1 shall extend to damages, including without limitation monetary claims based on
allegations of takings or inverse condemnation, resulting from diversion of waters, change in the
volume of flow, modification of the velocity of the water, erosion or siltation, or the modification of
the point of discharge as the result of, and to the extent of and proportion caused by, the negligence
by Developer, its officials, officers, the General Contractor, Subcontractor(s), agents, or employees
in the construction of the Project. The foregoing indemnification obligations of Developer shall not
include any claims (including claims under negligence and strict liability), demands, liability, losses,
causes of actions and suits of any kind, administrative or judicial proceedings, orders, judgments, and
all Related Costs arising directly or indirectly out of (x) the sole gross negligence or willful
misconduct of any Public Entity Party (except that the sole gross negligence or willful misconduct of
one Public Entity Party with respect to any Public Entity shall not be attributed to or affect the rights
of any Public Entity Party with respect to any other Public Entity under this Section 14.2), (y) Public
Entity conduct in connection with construction, maintenance, or operation of the Remaining
Phase 1A Infrastructure Improvements or any development, construction or use thereof or activity
thereon other than by Developer or a Developer Party, or (z) any use of the Developer’s Phase 1A
Infrastructure Improvements after Acceptance thereof, excluding any claims pursuant to Articles XI
or XII.
14.3. Hazardous Materials Indemnity.
14.3.1. Developer hereby assumes for itself and shall indemnify, defend the
Authority, the Port District Parties, and the City Parties, and hold the Authority, the Port District
Parties, and the City Parties harmless from any and all claims, demands, liability, losses, causes of
actions and suits of any kind, administrative or judicial proceedings, orders (judicial or
administrative), judgments, and all Related Costs (whether or not based upon personal injury,
negligence, strict liability, property damage, or contamination of, or adverse effects upon, the
environment, waters or natural resources, including any loss of or damage to any Public Entity’s real
or personal property), which occur or arise during or after the Term relating to, or resulting from, any
Hazardous Materials Activity, any Tenant Hazardous Material, any Material Exacerbation of Pre-
Existing Hazardous Material by a Developer Party or Hotel Operator, or any breach by Developer of
its obligations under this Section 14.3, at Developer’s sole cost and expense and with counsel and
experts selected by the Public Entities in their reasonable discretion, and reasonably approved by
Developer, and who act according to the Public Entities’ reasonable direction, with reasonable input
and cooperation from Developer. Developer’s obligations under Section 6.20 of the Sublease (and
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the indemnification of the Authority, the Port District Parties, and the City Parties by Developer
under this Section 14.2) include, without limitation, any Environmental Cleanup required by this
Agreement, costs incurred in connection with any investigation of site conditions or any cleanup,
treatment, remedial, removal, or restoration work required by this Agreement or any federal, state or
local government agency because of Hazardous Materials present in the air, soil or ground water
above, on, or under the Site or Improvements or (until Acceptance of the applicable Developer’s
Phase 1A Infrastructure Improvements) the Developer’s Phase 1A Infrastructure Improvements and
the Developer’s Phase 1A Infrastructure Improvements Site. The Public Entities shall have a direct
right of action against Developer even if no third party has asserted a claim. If a Public Entity
determine in its reasonable discretion that there is a conflict of interest with Developer’s counsel
representing such Public Entity and Developer, or that there is a conflict of interest with counsel
representing such Public Entity and the other Public Entities, then such Public Entity, at its election,
may conduct its own defense with its own counsel that is reasonably selected by the Public Entities,
reasonably approved by Developer and independent from Developer’s counsel (and in that event
Developer will select its own counsel) and the reasonable costs incurred by the applicable Public
Entity in such defense shall be covered by the foregoing indemnification, hold harmless and defense
obligations and be subject to reimbursement pursuant to the Reimbursement Procedure. The
indemnification and Environmental Cleanup requirements under Section 6.20 of the Sublease and
this Section 14.3 include, but, are not necessarily limited to:
14.3.1.1. Losses attributable to diminution in the value of the Site,
Improvements or (with respect to occurrences or conditions existing prior to Acceptance of the
applicable Developer’s Phase 1A Infrastructure Improvements) the Developer’s Phase 1A
Infrastructure Improvements Site;
14.3.1.2. Losses of rental or other income from the Site, Improvements or
with respect to occurrences or conditions existing prior to Acceptance of the applicable Developer’s
Phase 1A Infrastructure Improvements) the Developer’s Phase 1A Infrastructure Improvements Site;
14.3.1.3. Loss of or damage to natural resources regarding which Port
District is the lawfully designated trustee;
14.3.1.4. Loss or restriction of use of rentable space(s) in the Site,
Improvements or (with respect to occurrences or conditions existing prior to Acceptance of the
applicable Developer’s Phase 1A Infrastructure Improvements) the Developer’s Phase 1A
Infrastructure Improvements Site;
14.3.1.5. Adverse effect on the marketing of any space(s) in the Site,
Improvements or (with respect to occurrences or conditions existing prior to Acceptance of the
applicable Developer’s Phase 1A Infrastructure Improvements) the Developer’s Phase 1A
Infrastructure Improvements Site; and
14.3.1.6. All other liabilities, obligations, penalties, fines, claims, actions
including remedial or enforcement actions of any kind and administrative or judicial proceedings,
orders, or judgments), damages (including consequential and punitive damages), and costs (including
reasonable attorney, consultant, and expert fees and expenses).
Notwithstanding anything to the contrary in this Section, Developer shall have no obligation to pay
or reimburse any Public Entity for costs incurred by such Public Entity that such Public Entity would
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have been obligated to pay without express right to reimbursement by Developer, or for which such
Public Entity would have been obligated to reimburse Developer, pursuant to this Agreement.
Further, notwithstanding anything to the contrary in this Section, Developer shall have no indemnity
obligation to the Authority, the Port District Parties, and the City Parties resulting from Pre-Existing
Hazardous Material other than a Material Exacerbation of Pre-Existing Hazardous Material by a
Developer Party or Hotel Operator.
14.4. Illegal Discharge to Storm Drains. Developer shall defend, indemnify, protect, and
hold harmless each of the Public Entity Parties from and against all claims asserted, or liability
established for damages or injuries to any person or property resulting from a discharge to public
storm drains in violation of applicable laws to the extent arising out of the construction of the Project
an “Illegal Discharge”) caused by any action or failure of Developer, its officials, officers, the
General Contractor, Subcontractor(s), agents, or employees to take reasonable measures to prevent an
Illegal Discharge or any Illegal Discharge by any such persons or entities. Developer shall also be
responsible for payment of any fines or penalties assessed against any Public Entity for an Illegal
Discharge. Developer’s duty to indemnify and hold harmless shall not include any claims (including
claims under negligence and strict liability), demands, liability, losses, causes of actions and suits of
any kind, administrative or judicial proceedings, orders, judgments, and all Related Costs arising
directly or indirectly out of (x) the sole negligence or willful misconduct of any Public Entity Party,
y) Public Entity conduct in connection with construction, maintenance or operation of the
Remaining Phase 1A Infrastructure Improvements or any development, construction or use thereof or
activity thereon other than by the Developer or a Developer Party, or (z) any use of the Developer’s
Phase 1A Infrastructure Improvements after Acceptance thereof, excluding any claims pursuant to
Articles XI or XII.
14.5. Implementation of Authority Resolution 2020-002. Without limitation of the
Developer’s other obligations under this Agreement, the Developer agrees, at its sole cost and
expense, and with counsel reasonably selected by the Public Entity Parties, each in its reasonable
discretion, and reasonably approved by Developer, to indemnify, defend and hold harmless each of
the Public Entity Parties, and their officers, directors, employees, partners, affiliates, agents,
contractors, successors and assigns from any Claims, Related Costs, and amounts paid in settlement
of any claims or actions brought by any third party and related to the subject matter of the Related
Costs (as determined by the Developer and the Public Entity Parties), arising out of any action taken
by the Authority, the Port District, or the City, as applicable, in implementation of Authority
Resolution 2020-002; provided, however, such indemnity, defense and hold harmless obligations of
the Developer under this Section 14.5 shall not include any Claims and Related Costs arising solely
out of (a) the sole or collective negligence, or willful misconduct of the Authority, the Port District
and/or the City, as applicable, (b) the failure of the Authority Board to follow the procedures of the
Authority in adopting Authority Resolution 2020-002, or (c) the lack of authority of the Authority
Board to adopt Authority Resolution 2020-002, but shall include Claims and Related Costs arising
from the Developer’s delivery of incorrect, misleading, or inaccurate information to the City, the Port
District, or Authority, officers of the City, the Port District or the Authority, or the Authority Board,
which any of the aforementioned parties relied upon to adopt, or recommend the adoption of,
Authority Resolution 2020-002. The indemnification, defense, and hold harmless obligations of the
Developer under this Section 14.5 shall exist so long as a challenge or claim can be made against the
Authority, the Port District of the City.
14.6. Costs of Defense and Award. Developer shall immediately accept all tenders and
defend, at Developer’s own cost, expense and risk, any and all claims, demands, suits, actions, or
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other legal or administrative proceedings that may be brought or instituted against each Public Entity,
its officials, officers, employees and/or agents and that appear to be covered by the defense
obligation defined in Sections 14.1, 14.2, 14.3, 14.4 and 14.5. Developer acknowledges and agrees
that its obligation to accept tender and defend each Public Entity, its officials, officers, employees,
and/or agents as provided in this Section 14.6 is absolute and not subject to any limitations in
Sections 14.1, 14.2, 14.3, 14.4, and 14.5 of this Agreement, or elsewhere. Developer shall pay and
satisfy any judgement, award, or decree that may be rendered against any Public Entity or its
officials, officers, employees and/or agents, for any and all related legal expense and costs incurred
by each of them subject to the limitations in Sections 14.1 through 14.5 and only to the extent
Section 14.1 through 14.5 requires Developer to do so. If a court of competent jurisdiction
determines by a final judgment that any Public Entity was not entitled to indemnification or defense
by Developer pursuant to this Article XIV, then such Public Entity shall pay to Developer the cost
incurred by Developer in providing such indemnification or defense (including, without limitation,
the reasonable costs of Developer’s internal legal counsel). Where outside counsel has been retained,
reasonable costs of Developer’s internal legal counsel shall be limited to (x) supervising such outside
counsel and (y) such other customary work performed by in-house counsel in connection with
proceedings of this type where outside counsel is engaged; provided that Developer shall use
reasonable efforts to avoid duplicating work performed by its outside counsel and its internal legal
team. For the avoidance of doubt, “supervising such outside counsel” shall include, without
limitation, review and revision of any documents prepared by outside counsel, preparation of
memoranda or other similar correspondence to be provided to Developer, correspondence with
regarding status of matter, review of billing matters, negotiation of contracts with outside counsel,
and any other activities that would be reasonably performed by in house counsel in connection with
such supervision.
14.7. Insurance Proceeds. Developer’s obligation to indemnify shall not be restricted to
insurance proceeds, if any, it receives.
14.8. Declarations. Developer’s obligations under Article XIV shall not be limited by any
prior or subsequent declaration by Developer.
14.9. Survival. Developer’s obligations under Article XIV shall survive the expiration
and/or termination of this Agreement.
ARTICLE XV
INSURANCE REQUIREMENTS
15.1. Insurance Requirements. During the Construction Period, and with respect to any
portion of the Developer’s Phase 1A Infrastructure Improvements (including Sweetwater Park if the
Developer exercises the Sweetwater Park Option), until Acceptance of the applicable Developer’s
Phase 1A Infrastructure Improvements, Developer shall maintain the policies of insurance described
in Sections 15.2 and 15.3 in full force and effect. Insurance requirements applicable to Alterations
are set forth in the Sublease; however, if any Alterations are constructed during the Construction
Period, the Developer shall comply with the insurance requirements set forth in this Article XV with
respect to such Alterations.
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15.2. Forms and Amounts of Coverage. The policies for said insurance shall, as a
minimum, provide the following:
15.2.1. Commercial General Liability. “Occurrence” form Commercial General
Liability covering the Project Site, the Improvements, and Developer’s Phase 1A Infrastructure
Improvements, operations and contractual liability assumed by Developer in this Agreement and the
Sublease in the amount of not less than as set forth in Section 15.2.1.1. Developer’s indemnification
obligations under this Agreement and the Sublease shall in no event be limited by the terms or
qualifications to the contractual liability coverage under such insurance.
15.2.1.1. Commercial General Liability Policy Amount: Not less than
Twenty Million Dollars ($20,000,000) per occurrence limit for bodily injury and property damage.
The general aggregate limit shall be not less than Forty Million Dollars ($40,000,000) unless a
Twenty Million Dollars ($20,000,000) per location aggregate limit is provided by separate
endorsement. All such limits may, at Developer’s option, be satisfied by limits set forth in primary
policies and excess policies.
15.2.2. Builder’s Risk Property Coverage.
15.2.2.1. During the Construction Period, builder’s risk completed value
form insurance covering the perils insured under the ISO special causes of loss form, including
collapse, water damage and transit, covering the total value of work performed and equipment,
supplies and materials furnished (with an appropriate limit for soft costs in the case of construction)
and covering the full insurable value (exclusive of the cost of noninsurable items) of all equipment,
supplies and materials at any off-site storage location used with respect to the Project or in transit.
Specific limits of insurance for flood shall be determined at the joint discretion of Developer and
Authority. Earthquake limits shall, at a minimum, cover 250 year maximum probable loss or such
other limits as are agreed to by Developer and the Authority. The damage coverage shall be
endorsed with a Loss Payee endorsement in favor of the Trustee. Notwithstanding anything to the
contrary herein, the builder’s risk insurance required by this Agreement may not be terminated until
property insurance policies required by the Sublease are in effect. Net Proceeds shall be assigned by
the Authority to the Trustee pursuant to the Indenture.
Developer shall if commercially available cause its builder’s risk policy to
define “soft costs” to include the costs of issuance of the Authority Bonds and capitalized interest on
the Authority Bonds and interest expense related thereto (“Expanded Soft Cost Coverage”). The
Developer shall request proposals for builder’s risk policies including Expanded Soft Cost Coverage,
and shall present such proposals to the Public Entities for their consideration. If and as needed,
Developer and the Public Entities shall meet and confer regarding such proposals. Notwithstanding
the foregoing provisions of this paragraph, if the Public Entities, in their reasonable discretion, select
a proposal for the procurement of such builder’s risk policy, and Developer (A) determines that
procuring such Expanded Soft Cost Coverage will neither adversely affect Developer’s procurement
of builders’ risk insurance nor adversely affect the coverage of such builder’s risk insurance or
B) determines in its reasonable discretion to procure such Expanded Soft Cost Coverage, then
Developer shall procure such builder’s risk policy for the applicable policy period with Expanded
Soft Cost Coverage (assuming that such builder’s risk policy remains commercially available to
Developer, and provided, that if there is more than one proposal and Developer determines that the
proposal selected by the Public Entities would adversely affect Developer’s procurement of builder’s
risk insurance or the coverage of such builder’s risk insurance, then Developer may, in Developer’s
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sole discretion, select any proposal that would not adversely affect, or would have lesser adverse
effect on, Developer’s procurement of builder’s risk insurance or the coverage of such builder’s risk
insurance), and the Authority shall promptly reimburse Developer for the amount by which (x) the
aggregate amount expended by Developer in connection with obtaining and maintaining the builder’s
risk policy with Expanded Soft Cost Coverage exceeds (y) the amount that Developer would have
expended in connection with maintaining a builder’s risk policy without Expanded Soft Cost
Coverage. Promptly after any Public Entity so requests, Developer shall provide documentation to
the Public Entities that reasonably evidences the amount of such excess.
The Public Entities shall be named as additional insureds under any builder’s
risk policy procured by the Developer pursuant to this Agreement.
15.2.2.2. Any Casualty Proceeds shall be paid to the Trustee as “loss
payee” under the property insurance policies that are required to be maintained pursuant to this
Agreement or the Sublease and shall be deposited into the Insurance and Condemnation Fund
pursuant to Section 4.5 of the Authority Indenture and Section 6.1(a) of the Facility Lease. Such
Casualty Proceeds shall be held in trust by the Trustee in the Insurance and Condemnation Fund
pursuant to the terms of the Indenture and shall be paid and be applied as provided in Section 9.2
hereof, Section 5.2 of the Sublease, and Section 6.1(a) of the Facility Lease. If there is no Trustee or
if there is but the Trustee declines to act as a trustee for the disbursement of funds as provided in
Section 5.2 of the Sublease, then any Casualty Proceeds shall be paid and disbursed as provided in
Section 5.2 of the Sublease and Section 6.1(a) of the Facility Lease.
15.2.3. Worker’s Compensation. Workers’ compensation insurance covering all
persons employed by Developer at the Project Site, Improvements and Developer’s Phase 1A
Infrastructure Improvements and with respect to whom death or bodily injury claims could be
asserted against Developer, any Public Entity, the Project Site, the Improvements, or the Developer’s
Phase 1A Infrastructure Improvements, with statutorily required limits, and employer’s liability
insurance with minimum limits of not less than One Million Dollars ($1,000,000) for each
accident/employee/disease. Workers’ compensation insurance shall include a waiver of subrogation
in favor of Public Entity Parties.
15.2.4. Automobile Liability. If Developer owns or leases vehicles, business
automobile liability insurance covering liability arising out of vehicles used on or about the Project
Site, Improvements and Developer’s Phase 1A Infrastructure Improvements by Developer or its
employees insuring against liability for bodily injury, death and property damage in an amount not
less than One Million Dollars ($1,000,000) each accident limit.
15.2.5. Contractor’s Pollution Liability Coverage. If either the City or the Port
District determines, in its sole and absolute discretion, that Developer performs or contracts for any
work which involves a Hazardous Materials Activity or which has the potential to disturb or result in
the release of any Hazardous Material, for which there is potential exposure to pollution or
Hazardous Materials to Persons or the environment, Developer shall obtain or cause its contractor to
obtain Contractor’s Pollution Liability, Pollution Legal Liability and/or Asbestos Pollution Liability
and/or Errors & Omissions applicable to the work being performed or the potential release of any
Hazardous Material, with limits of $5,000,000 per claim or occurrence and $10,000,000 aggregate
per policy period of one year or the limits maintained by or available to the contractor, whichever is
higher. The Public Entities shall also be named as additional insureds on any such policy. During the
Construction Period, immediately upon learning of or reasonably suspecting that a release of
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Hazardous Materials has occurred on, in, under or about the Project Site, Developer shall provide
notice of the same to each of the Public Entities.
15.2.6. UST Coverage. To the extent the foregoing coverages do not cover any
underground storage tanks (USTs) located on the Site during the Construction Period, Developer
shall procure such insurance in amounts and with limits reasonably acceptable to Developer and the
Public Entities.
15.3. General Requirements.
15.3.1. Certificates and Other Requirements. The cost of all required insurance
shall be borne by Developer. During the Construction Period, Developer shall provide the Public
Entities with insurance certificates, in the form customary in the insurance industry, issued by the
insurer evidencing the existence of the necessary insurance policies and certified endorsements
effecting coverage required by this Article XV (“Certificates”). The Certificates and endorsements
for each insurance policy are to be signed by a person authorized by that insurer to bind insurance on
its behalf. Notwithstanding the foregoing, Developer shall request copies of each insurance policy
required under this Article XV and make available to the Public Entities for inspection at the Project
Site or the Improvements any insurance policy it receives.
15.3.2. Additional Insureds and Other Requirements. All liability insurance
policies shall name, or be endorsed to name the Public Entities as additional insureds and protect the
Public Entities against any legal costs in defending claims. All liability policies shall provide cross-
liability coverage. If Developer receives notice of any cancellation, modification such that the
requirements of this Agreement are no longer satisfied, suspension or voiding of an insurance policy
required under this Article XV from the applicable insurance carrier, then Developer shall provide to
the Public Entities written notice thereof within five (5) Business Days after receipt of such notice.
To the extent the policy is blanket endorsed or is specifically endorsed to provide the same, all
insurance policies shall also provide that the subject policy shall not be cancelled without thirty (30)
days’ prior written notice to the Public Entities. All insurance policies shall be endorsed to state that
Developer’s insurance is primary and not excess or contributory to any insurance issued in the name
of the Public Entities. Further, all insurance companies must have an S&P or AM Best rating of not
less than “A-”.
15.3.3. Deductibles. Any deductibles or self-insured retentions must be declared to
each of the Developer and the Public Entities and be consistent with customary deductibles and self-
insured retentions, as applicable, for a convention center or conference center operating in the United
States of America that is comparable with the Convention Center; provided, however, if the
deductible or self-insured retention is in excess of Two Hundred Fifty Thousand Dollars ($250,000),
Developer shall provide the Public Entities with reasonably satisfactory evidence of its ability to
meet the deductible or self-insured retention. The evidence to be provided to the Public Entities must
include separate, unconsolidated, audited financial statements to be provided annually or upon any
Public Entities’ written request to Developer. If Developer does not provide reasonably satisfactory
evidence of its ability to meet the deductible or self-insured retention, then Developer shall have the
option to either: (i) reduce or eliminate such deductible or self-insured retention as respects the
Public Entity Parties; (ii) procure a bond guaranteeing payment of losses and related investigations,
claim administration, and defense expenses; or (iii) agree to self-insure the risk with form of
collateral or written agreement acceptable to the Public Entities.
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15.3.4. Updates. If any Public Entity reasonably determines that the insurance
provisions in this Agreement do not constitute Adequate Insurance, then such Public Entity shall
notify Developer thereof and of the changes to the insurance requirements of this Agreement that any
Public Entity reasonably believes are necessary to cause such requirements to constitute Adequate
Insurance. The Parties agree that the insurance provisions will be modified to increase Developer’s
insurance obligations to the smallest extent that is consistent with such modified insurance provisions
providing for Adequate Insurance. The Parties shall, in the first instance, attempt to agree on any
revisions to such insurance provisions so that they provide for Adequate Insurance by entering into
good faith negotiations and, if, within seven (7) days from the commencement of such negotiations,
the Parties do not reach agreement, then, until the dispute is finally resolved by a final judgment
rendered by a court of competent jurisdiction, the then-existing insurance requirements of this
Agreement shall continue to govern Developer’s obligations. After the Parties agree on a new
insurance program that constitutes Adequate Insurance or such final judgment of a court of
competent jurisdiction establishes a new insurance program, such new insurance program shall bind
the Parties. Developer shall deposit new Certificates incorporating such changes within thirty (30)
days of the Parties agreeing on such new insurance program. Failure by Developer to maintain
insurance or deposit insurance Certificates as required in this Article XV, where such failure is not
cured by Developer within ten (10) days following written notice thereof to Developer, shall
constitute an Event of Default. Without limitation of the foregoing, Developer agrees that if
Developer does not take out and maintain such insurance or furnish the Public Entities with
Certificates in a timely manner, the Public Entities may, but shall not be required to, procure said
insurance on Developer’s behalf and charge Developer the cost thereof, which amount shall be
payable by Developer to the Public Entities pursuant to the Reimbursement Procedure.
15.3.5. No Limit on Liability. The procuring of such required policies of insurance
shall not be construed to limit Developer’s liability hereunder, nor to fulfill the indemnification
provisions and requirements of this Agreement.
15.3.6. Compliance with Insurance Requirements. Developer agrees not to keep on
the Project Site or permit to be kept, used, or sold thereon, anything prohibited by any fire or other
insurance policy covering the Project Site. Developer shall, at its sole expense, comply with all
reasonable requirements for maintaining fire and other insurance coverage on the Project Site and
represents to the Public Entities that Developer will confirm that it is in compliance with such
requirements at all times.
15.4. Waiver of Subrogation. Developer hereby releases the Public Entities from any and
all liability or responsibility to Developer or anyone claiming through or under Developer by way of
subrogation or otherwise for any loss or damage to the Project Site, any Improvements, and
Developer’s Phase 1A Infrastructure Improvements, or any of Developer’s personal property or
business caused by or arising from a fire or any other event that is covered by the insurance required
to be carried pursuant to this Agreement or is actually carried, even if such fire or other event shall
have been caused by the fault or negligence of any of the Public Entities.
15.5. Authority Obligation to Maintain Insurance. Until the earlier of (a) Full Payment or
b) the earlier termination of the Sublease and this Agreement, the Authority shall maintain crime
insurance, or its equivalent, with respect to conduct by officers and staff of the Authority and
employees of the City and Port District relating to the transfer and requisition of Authority Bond
proceeds and County Funds and processing of Developer’s Phase 1A Payment Requests and
Convention Center Payment Requests, in the minimum coverage amount of $5 million (“Crime
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Insurance”). In the event of the occurrence of any insurable event under such Crime Insurance,
Authority shall pursue recovery under such Crime Insurance. The Crime Insurance shall name, or be
endorsed to name the Developer as an additional insured or loss payee, as reasonably and
commercially appropriate and available. If Authority receives notice of any cancellation,
modification such that the requirements of this Section 15.5 are no longer satisfied or suspension or
voiding of an insurance policy required under this Section 15.5 from the applicable insurance carrier,
then Authority shall provide to the Developer written notice thereof within five (5) Business Days
after receipt of such notice.
ARTICLE XVI
RECORDS AND AUDITS
16.1. Retention of Project Records. Developer shall use commercially reasonable efforts to
maintain the Project Records (defined below) for a period of not less than seven (7) years after the
date such record is created (or such longer period as Developer may decide in its sole discretion).
Developer shall make available to the Public Entities any of the Project Records upon request of any
of the Public Entities. “Project Records” means the following documents and materials, but only if
such documents and materials are related to the Project: Contract Documents, plans and
specifications, inspection reports, invoices related to Project Costs, and documents that evidence
payment of Project Costs or the basis for such payments. Project Records also means such other
documents that (a) are reasonably necessary to evaluate (i) whether the Project has been or is being
constructed in accordance with the requirements of this Agreement; (ii) whether the certifications
that have been made in any Developer Phase 1A Payment Request or Convention Center Payment
Request are true and correct; (iii) whether Developer is in compliance with Article XIII; (iv) the
existence of any Force Majeure Event that Developer asserts exists and the duration of any delay in
connection therewith; or (vi) the amount of Project Costs that have been or will be incurred; and
b) are reasonably requested by the Public Entities; provided, however, that “Project Records” with
respect only to such other documents under clauses (a) and (b) above shall not include any of the
following: proprietary documents and information, documents and information that are subject to
confidentiality agreements which do not permit their disclosure to the Public Entities, documents and
information that are subject to the attorney client privilege, tax advisor privilege, internal
communications among Developer, its Affiliates or any of their respective officers, employees or
agents (including, without limitation, attorneys and tax advisors and consultants), communications
among Developer, Marriott, any lender, any direct or indirect owner of Developer or any of their
respective officers, employees or agents. Developer may redact from documents provided under
clauses (a) and (b) above any information that is not reasonably necessary for the purposes of such
clauses.
16.2. Audit of Records. At any time during normal business hours, with 48 hours’
advanced notice and as often as the Public Entities reasonably deem necessary, Developer shall make
available, or shall cause its General Contractor or any Subcontractor to make available, to the Public
Entities for examination at the Project Site, the Convention Center, or at such other location in San
Diego County, California as is reasonably acceptable to the Public Entities all of the Project Records.
Developer, the General Contractor and Subcontractors will permit the Public Entities to make audits
of the Project Records. If any Project Records are not made available at the Project Site, the
Convention Center, or at such other location in San Diego County, California as is reasonably
acceptable to Authority, then Developer shall pay all the travel related costs of the Authority to audit
such Project Records at the location where the records are maintained. Such costs will not be Project
Costs.
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16.2.1. Costs. Developer and Developer’s agents shall allow the Public Entities to
audit and examine the Project Records and any and all accounting procedures and practices that the
Public Entities reasonably determine are necessary to discover and verify all costs of whatever
nature, which are claimed to have been incurred, anticipated to be incurred, or for which a claim for
additional compensation or for extra work have been submitted under this Agreement.
ARTICLE XVII
TITLE TO ALTERATIONS AND IMPROVEMENTS
17.1. Title to Project. The Improvements constituting the Project which may be installed,
constructed or placed in, on, over or under the Project Site, from time to time by Developer in
accordance with this Agreement, the Sublease, and other agreements, (a) shall, subject to
Developer’s obligations under Section 6.6 of the Sublease or such other agreements, as applicable, be
so installed, constructed or placed at the Authority’s, the City’s or Port District’s, as applicable, sole
cost and expense, and (b) shall remain the Authority’s, the City’s or Port District’s, as applicable,
property during the Term; provided that Developer’s trade fixtures (that is fixtures relating uniquely
to Developer and which are removable without non-repairable damage to the other Improvements),
furnishings, moveable equipment and other personal property of Developer shall remain the property
of Developer. Notwithstanding the foregoing, at least ninety (90) days before the last day of the
Sublease Term or, in the case of earlier termination of the Sublease, within ten (10) days after such
termination, unless the City expressly elects within the same time periods to require Developer to
remove the same, any artworks that constitute personal property and that were provided to comply
with Developer Art Investment but which are not governed by a separate agreement between
Developer and the artist relating to the removal of such artworks at the end of the Sublease Term,
shall not be removed and shall remain located on the Site or the Convention Center, as applicable.
Prior to the Expansion Date, any and all expenditures made by Developer with respect to the Project
shall be treated as supplemental Rent for all purposes under the Sublease; provided that, for the
avoidance of doubt, such expenditures shall not modify, reduce, substitute or credit any of
Developer’s other Rent obligations under the Sublease.
17.2. Survival. The terms of this Article XVII shall survive the expiration or earlier
termination of this Agreement and the Sublease.
ARTICLE XVIII
LIENS
18.1. No Right to Bind Port District. Neither Developer, any Developer Party, nor the
Hotel Operator shall have any power or authority to do any act or thing, or to make any contract or
agreement which shall bind Port District in any way whatsoever, and Port District shall have no
responsibility to Developer, Developer Party, the Hotel Operator, or other Person who performs,
causes to perform, engages in or participates in any construction of any Developer’s Phase 1A
Infrastructure Improvements, Improvements, Alterations or any other work on the Project Site at the
request of Developer, Developer Party, Hotel Operator, or other Persons. Port District shall not be
required to take any action to satisfy any such contract or agreement or to remove or satisfy any lien
resulting therefrom.
18.2. Notice of Non-Responsibility. Developer shall give written notice to all contractors,
subcontractors and materialmen of Port District’s non-responsibility in connection with any
construction of the Developer’s Phase 1A Infrastructure Improvements, Convention Center,
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Alterations or any other construction work on the Project Site, and shall immediately provide Port
District with true copies of such notices not less than ten (10) days prior to the commencement of any
work on the Project Site. The Port District Parties shall have the right to post and keep posted thereon
notices of non-responsibility, or such other notices which Port District may deem to be proper for the
protection of Port District’s interest in the Project Site. Developer shall provide Port District with any
information required by Port District to complete the notice of non-responsibility.
18.3. Mechanics’ Liens. Developer shall pay or cause to be paid all costs for work, labor,
services or materials supplied to or performed on the Project Site that might result in any mechanics’
lien or similar lien as and when Developer is required to do so under Developer’s agreement with the
respective provider thereof. If Developer receives notice that any mechanics’ lien or any similar lien
is recorded against the Project Site and Developer is not contesting such lien in accordance herewith,
then Developer shall cause such lien to be released and removed of record within thirty (30) days
after Developer receives notice of the recordation of the mechanics’ lien or similar lien. Developer
shall indemnify, defend, release and save Port District free and harmless from and against any and all
claims of lien of laborers or materialmen or others for work performed or caused to be performed or
for materials or supplies furnished for or at the Project Site, the Improvements or the Developer’s
Phase 1A Infrastructure Improvements by or for any Developer Party and the Hotel Operator and all
Related Costs.
18.4. Contest of Lien. If Developer in good faith wishes to contest the amount or validity
of any lien (other than any lien with respect to taxes), then Developer shall have the right to do so;
provided that (a) Developer shall first provide Port District with at least ten (10) Business Days’
written notice prior to any such contest, (b) Developer shall first record a surety bond sufficient to
release such lien; and (c) Developer shall cause the following conditions to remain satisfied during
such contest:
18.4.1. such contest shall not place the fee estate of the Project Site in material
danger of being forfeited or lost;
18.4.2. such contest shall be without cost, liability, or expense to Port District;
18.4.3. Developer shall prosecute such contest with reasonable diligence and in
good faith; and
18.4.4. no Event of Default shall exist under this Agreement at the time of or
during such contest.
18.5. Port District’s Right to Pay. If Developer shall be in default in paying any charge for
which a lien claim has been filed, and if Developer has not contested such lien in accordance with
Section 18.4, then Port District may, but shall not be so obliged to, pay said lien claim and any costs
incurred in connection therewith, and the amount so paid, together with reasonable attorneys’ fees
incurred in connection therewith, shall be immediately due and owing from Developer to Port
District, and Developer shall pay the same to Port District pursuant to the Reimbursement Procedure,
together with interest on the full amount thereof at the Default Rate from the date of Port District’s
payments until paid.
18.6. Notice of Liens. Should any claims of lien be filed against the Project Site or any
Improvement or any action affecting the title to the Project Site, the Improvements or the
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Developer’s Phase 1A Infrastructure Improvements be commenced, the Party receiving notice of
such lien or action shall give the other Party written notice thereof within five (5) Business Days of
receipt.
18.7. Right of Entry. Nothing herein shall imply any consent on the part of Port District to
subject Port District’s estate to liability under any mechanics’ lien or other lien. Without limiting
Developer’s obligations under Section 18.2 above, the Port District Parties shall have the right, but
not the obligation, to enter upon and inspect the portions of the Developer’s Phase 1A Infrastructure
Improvements, Alterations, and Convention Center that are generally accessible to the general public
or the portions of the Project Site where the operation of the Developer’s Phase 1A Infrastructure
Improvements, Alterations, and Convention Center is ongoing, during normal business hours and
upon a three (3) Business Days’ prior notice to Developer (except in the case of an emergency in
which case no prior notice shall be required but each of such Port District Parties shall notify
Developer and, prior to the Completion of the Resort Hotel and the Parking Improvements,
Developer’s Risk Construction Manager thereof by phone prior to entering the Project Site) and Port
District shall, and shall cause each of such Port District Parties to: (a) comply with all applicable
security and safety procedures of Developer of which Developer informs Port District in writing and
with which such Port District Party can reasonably comply, and (b) use commercially reasonable
efforts to minimize any interference with Developer’s operation and use of the Project Site, the
Improvements, the Ground Lease Property, the Resort Hotel and the Parking Improvements, while on
the Project Site and at the Improvements. Notwithstanding the foregoing, nothing herein shall limit
the Port District’s right to enter the Project Site, the Improvements or the Developer’s Phase 1A
Infrastructure Improvements at any time to exercise its police powers.
ARTICLE XIX
TAXES
19.1. Reporting.
19.1.1. The Public Entities and Developer acknowledge and agree that they have
delivered the Ground Lease and the Convention Center Leases with the understanding that (i) during
the Ground Lease Term, the Resort Hotel and Parking Improvements are owned by Developer, (ii)
during the Term, the Convention Center is owned by the Authority, (iii) from and after the Expansion
Date, the Convention Center is owned by Port District, (iv) Developer has only the right to the
possession and use of the Convention Center during the Term upon the terms and conditions of the
Sublease, and from and after the Expansion Date upon the terms and conditions of the Ground Lease,
v) each of the Ground Lease and the Sublease is a “true lease” for all applicable legal and federal
state and local tax purposes and is not a financing lease, capital lease, mortgage, equitable mortgage,
deed of trust, trust agreement, security agreement or other financing or trust arrangement, and the
economic realities of the Ground Lease and the Sublease are those of a true lease, (vi) all amounts
paid by Developer pursuant to Article 5 of the Ground Lease, and with respect to the Convention
Center pursuant to Article 7 and Article 15 of the Ground Lease, are Rent (as defined in the Ground
Lease) for all applicable tax purposes, subject to Section 5.9 of the Ground Lease, (vii) all amounts
paid by Developer pursuant to Article III of the Sublease and with respect to the Facility, are Rent for
all applicable tax purposes, subject to Section 3.6 of the Sublease, (viii) the Ground Lease and the
Convention Center Leases have been entered into by each of Port District, City, Authority, and
Developer in reliance upon the mutual covenants, conditions and agreements contained therein; and
ix) none of the covenants, conditions or agreements contained herein or therein is intended, nor shall
the same be deemed or construed, to create a partnership between or among the Port District, City,
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Authority, and Developer, to make them joint venturers, or to make Developer an agent, legal
representative, partner, subsidiary or employee of Port District, the City, or the Authority.
19.1.2. The Public Entities and Developer agree not to (i) file or submit any tax
return or other document with any Governmental Authority; (ii) enter into any contract with any
Person; or (iii) release any financial statements, in each case, that takes a position other than that
x) both the Ground Lease and the Sublease are “true leases” for federal, state and local tax purposes,
y) the Authority is the owner of the Convention Center during the Sublease Term, and (z) Port
District is the owner of the Convention Center from and after the Expansion Date, in each case,
unless otherwise required by a final “determination” within the meaning of Section 1313 of the Code.
The Parties agree that the foregoing includes their agreement that (x) Developer will not claim
depreciation deductions under Sections 167 or 168 of the Code with respect to the Convention Center
and (y) Developer will report all payments described in Sections 19.1.1(vi) and (vii) as rent expense
under Section 162 of the Code, subject to Section 5.9 of the Ground Lease or Section 3.6 of the
Sublease, as applicable.
19.1.3. The terms of this Section 19.1 shall survive the expiration or earlier
termination of this Agreement.
19.2. Tax Claims. Each Party agrees to (A) promptly notify the other Parties of any audit,
examination or other proceeding with respect to any tax, tax return (including any schedule attached
thereto) or information reporting related to the Ground Lease or the Sublease, the Improvements, the
Resort Hotel, the Parking Improvements, or the Project, including without limitation, the agreed
positions described in Sections 19.1.1 and 19.1.2 (collectively, the “Tax Claims”, and individually, a
Tax Claim”) and (B) reasonably cooperate with the other Parties in connection with any Tax Claim.
In the event that any Tax Claim is asserted against a Public Entity Party, Developer agrees to
indemnify and defend such Public Entity Party, at Developer’s sole cost and expense, and hold such
Public Entity Party harmless from any and all Tax Expenses and documented Related Costs arising in
connection with such Tax Claim; provided, that the Related Costs with respect to such Tax Claim
shall be determined in accordance with the following principles:
19.2.1. Related Costs arising from the work of an employee of a Public Entity
during a particular calendar year shall not exceed the product of (x) the salary of such employee and
y) the percentage of such employee’s time in such year which such employee was solely engaged on
the Tax Claim (to be substantiated by time records in form and substance reasonably acceptable to
Developer), plus, for the avoidance of doubt, any reasonable, out-of-pocket expenses incurred by
such employee with respect to the Tax Claim in such calendar year. For example, if an employee of
City earns $160,000, spends 25% of her time in the calendar year on the Tax Claim and incurs $100
of reasonable, out-of-pocket expenses, City would be entitled to no more than $40,100 of Related
Costs with respect to the work of such employee during such calendar year.
19.2.2. A Public Entity shall not engage any outside counsel with respect to the Tax
Claim without the prior written consent of Developer (not to be unreasonably withheld, conditioned
or delayed; provided, that Port District, Authority and Developer acknowledge and agree that consent
from Developer shall not be required if the counsel selected by Port District or the Authority is
Orrick Herrington & Sutcliffe LLP; provided, further, that the City and Developer acknowledge and
agree that consent from Developer shall not be required if the counsel selected by the City is
Stradling Yocca Carlson & Rauth, P.C.). For the avoidance of doubt, there shall be no cap on the
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Related Costs incurred by outside counsel approved or deemed approved by Developer and such
Related Costs shall include all legal fees and out of pocket expenses; and
19.2.3. in the event that a Public Entity engages outside counsel, then,
notwithstanding Section 19.2.1 above, such Public Entity shall not be entitled to recovery of Related
Costs with respect to the work performed by employees of the Public Entity except to the extent such
work is limited to (x) supervising such outside counsel and (y) such other customary work performed
by in-house counsel in connection with audits, examinations or other proceedings of this type where
outside counsel is engaged; provided that such Public Entity shall use reasonable efforts to avoid
duplicating work performed by its outside counsel. For the avoidance of doubt, “supervising such
outside counsel” shall include without limitation, review and revision of any documents prepared by
outside counsel, preparation of memoranda or other similar correspondence to be provided to the
governing board or other executives of the relevant Public Entity, correspondence with the general
counsel or other executive members of the relevant Public Entity regarding status of matter, review
of billing matters, negotiation of contract with outside counsel, and any other activities that would be
reasonably performed by the office of the general counsel in fulfillment of its fiduciary duties to the
relevant Public Entity.
This Section 19.2 shall survive the early termination or expiration of this Agreement.
Notwithstanding anything to the contrary herein, (i) this Section 19.2 shall not apply to, and
Developer shall have no responsibility with respect to, any taxes payable based on income or profits
of the Public Entity Parties (for the avoidance of doubt, such exclusion shall not apply to the extent
such Tax Claim relates to withholding or information reporting with respect to the taxable income of
the Developer), and (ii) Section 19.4 and either Section 4.6 of the Ground Lease or Section 6.19(b) of
the Sublease, as applicable, and not this Section 19.2, shall govern all Tax Claims with respect to
Property Tax Expenses.
19.3. Property Expenses. Without limitation of Developer’s other obligations under this
Agreement and the Sublease, Developer agrees to pay, on or before the date due, all Property
Expenses. As used herein, “Property Expenses” shall include, without limitation, all costs and
expenses of any nature incurred or payable, or arising in connection with, the ownership,
management, maintenance, construction, repair, replacement, restoration or operation of the Site
and/or the Improvements, including, without limitation, any amounts paid for: (i) the cost of
supplying any utilities, the cost of operating, maintaining, repairing, renovating and managing any
utility systems, mechanical systems, communications systems, sanitary and storm drainage systems,
and the cost of supplies and equipment and maintenance and service contracts in connection
therewith; (ii) the cost of licenses, certificates, permits and inspections; (iii) the cost of any insurance
carried or required to be carried by Developer pursuant to this Agreement, the Sublease, the Ground
Lease, and the Hotel Management Agreement with respect to the Site and/or the Improvements
including without limitation any premiums and deductibles except the cost of any Facility Lease Lost
Rental Insurance (as defined in the Sublease) and the incremental cost of any Expanded Soft Cost
Coverage; (iv) the cost of landscaping, supplies, tools, equipment and materials, and all fees, charges
and other costs incurred in connection with the management, operation, repair and maintenance of
the Site and/or the Improvements; (v) payments under any easement, license, permit, operating
agreement, declaration, or covenant or instrument pertaining to the Site that exist as of the
Commencement Date or that are created or consented to by Developer; and (vi) the cost of any
Improvements, capital repairs, capital alterations, or capital equipment, required by Laws, the Hotel
Management Agreement or otherwise required under this Agreement, the Sublease, or the Ground
Lease. Notwithstanding anything to the contrary in this Agreement or the Sublease, Property
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Expenses shall not include (a) Property Tax Expenses, (b) any amounts that constitute Advance Rent,
or (c) any other amount that a Public Entity has expressly agreed to pay without reimbursement from
Developer under this Agreement or any Contemporaneous Agreement or that this Agreement or any
Contemporaneous Agreement expressly provides that the Developer is not required to pay.
19.4. Property Tax Contest Cooperation. Subject to its consent under the Ground Lease or
Sublease, as applicable, and subject to any conditions which it has imposed thereunder, a Public
Entity shall join in a Property Tax Contest if such Property Tax Contest is legally required to be
initiated or prosecuted in such Public Entity’s name. In such case, such Public Entity shall cooperate,
as Developer reasonably requests, and at Developer’s sole cost and expense, to permit the Property
Tax Contest to be prosecuted in such Public Entity name. The Public Entities shall give Developer
any publicly available documents requested by Developer in writing that are in their control and
Developer determines are reasonably necessary for Developer to prosecute its Property Tax Contest
except where (i) the document is subject to an exemption or exception under the California Public
Records Act (California Government Code Sections 6250 et seq.); (ii) the document is confidential
pursuant to another agreement between the relevant Public Entity and another Person; (iii) the
document is protected by the attorney-client privilege or work-product protections; (iv) the disclosure
or release of such document would result in a breach of an agreement to which the relevant Public
Entity is a party; or (v) the disclosure or release of the document would result in a violation of Laws.
Developer shall pay all costs and expenses, including any legal costs, of any Property Tax Contest,
including, without limitation, any costs and expenses resulting from the withdrawal of a Property Tax
Contest. If Developer requests that a Public Entity assist Developer with any Property Tax Contest in
accordance with the Ground Lease or the Sublease, and such assistance is consistent with the
requirements of Section 4.6 of the Ground Lease or Section 6.19 of the Sublease, as applicable, and
this Section 19.4, then the Public Entity shall, within fifteen (15) days after receipt of such request,
notify Developer of the total amount of Anticipated Assistance Costs. Developer may, but shall have
no obligation to, fund the Anticipated Assistance Costs (“Developer Funding”). If Developer does
not notify the Public Entity that Developer will provide Developer Funding to the Public Entity, then
the Public Entity shall have no obligation to assist Developer with such Property Tax Contest. If
Developer notifies the Public Entity that Developer will provide Developer Funding to the Public
Entity and Developer pays to the Public Entity an amount that is equal to or greater than the
Anticipated Assistance Costs, then the Public Entity shall reasonably assist Developer with such
Property Tax Contest as Developer reasonably requires. If the actual amount of Assistance Costs in
connection with such assistance is at any time greater than the Developer Funding provided before
and at such time, then the Public Entity shall promptly notify Developer thereof and the Parties shall
follow the process set forth in the preceding three sentences. Port District shall have no obligation to
reimburse Developer for Developer Funding up to the amount of Assistance Costs. A Public Entity
shall have no liability to Developer if the Public Entity does not assist, or continue to assist, with any
Property Tax Contest if Developer refuses to provide Developer Funding or the amount Developer
has advanced is not sufficient to cover the Assistance Costs or the Property Tax Contest is not in
compliance with this Section 19.5.2 and Section 4.6 of the Ground Lease or Section 6.19 of the
Sublease, as applicable. A Public Entity shall return to Developer any portion of Developer Funding
that the Public Entity receives from Developer and does not use for the Property Tax Contest within
thirty (30) days after the Public Entity receives notice from Developer that the Property Tax Contest
is concluded or Developer is withdrawing the Property Tax Contest.
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ARTICLE XX
EQUAL EMPLOYMENT OPPORTUNITY/NONDISCRIMINATION AND OFAC
20.1. Nondiscrimination. Developer shall comply with Title VII of the Civil Rights Act of
1964, as amended; the Civil Rights Act of 1991; the California Constitution; the California Fair
Employment and Housing Act; the ADA; and any other applicable Laws now existing or hereinafter
enacted, requiring equal employment opportunities or prohibiting discrimination. This shall include,
without limitation, Laws prohibiting discrimination because of race, color, religion, sex, national
origin, ancestry, physical or mental disability, veteran status, medical condition, marital status, age,
sexual orientation, pregnancy, or other non-job related criteria. In complying with all such Laws,
including, without limitation the ADA, Developer shall be solely responsible for such compliance
and required programs, and there shall be no allocation of any such responsibility between Port
District and Developer. Developer shall contractually require the General Contractor, all
Subcontractors, and Developer’s consultants, subconsultants, and contractors to comply with the
requirements of this Article XX.
20.1.1. Equal Employment Opportunity Certification. Developer shall require all
bidders to submit signed equal employment opportunity certifications, in substantially the form
attached as Exhibit W, with their bid packages.
20.1.2. Equal Opportunity Contracting Nondiscrimination. Developer shall not
discriminate on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age,
or disability in the solicitation, selection, hiring, or treatment of bidders, the General Contractor,
Subcontractors, vendors, or suppliers. Developer shall provide equal opportunity for bidders,
contractors, the General Contractor, and Subcontractors to participate in contracting and
subcontracting opportunities. Developer understands and agrees that violation of this Section 20.1.2
shall be considered a material breach of this Agreement and may result in termination of this
Agreement or other sanctions. The language in this Section 20.1.2 shall be inserted in contracts
between Developer, the General Contractor, any Subcontractors, vendors, and suppliers awarded in
accordance with Section 6.6.
20.2. Compliance with Employment and Labor Requirements. Developer shall comply
with the Federal Fair Labor Standards Act of 1938; the Federal Labor-Management Reporting and
Disclosure Act of 1959; the Occupational Safety and Health Act of 1970; the California Constitution;
and any other Laws now existing or hereinafter enacted, regarding employment and labor practices.
Developer shall also comply with the National Labor Relations Act, including the provisions with
respect to the rights of employees to organize.
20.3. OFAC Compliance. Developer represents and warrants as of the Effective Date that
i) Developer and, to the best of Developer’s knowledge, the Persons that directly or indirectly hold
an interest in Developer (collectively, “Developer’s Members”, each a “Developer Member”)
other than any such Person that owns an interest in Developer through publicly traded securities) is
not now a Person with whom Port District or any citizen of the United States is restricted from doing
business with under the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, H.R. 3162, Public Law 107-56
commonly known as the “USA Patriot Act”) and regulations promulgated pursuant thereto, or
under any successor statutes or regulations, including, without limitation, persons and entities
Prohibited Persons”) named on the Specially Designated Nationals and Blocked Persons List
maintained by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) or a
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Person (also, a “Prohibited Person”) with whom a citizen of the United States is prohibited to
engage in transactions by any trade embargo, economic sanction, or other prohibition of United
States law, regulation, or Executive Order of the President of the United States, (ii) to the best of
Developer’s knowledge, none of the funds or other assets of Developer constitute property of, or are
beneficially owned, directly or indirectly, by any Prohibited Persons (iii) to the best of Developer’s
knowledge, no Prohibited Person directly or indirectly Controls Developer, or any of Developer’s
Members, either individually or in the aggregate and (iv) to the best of Developer’s knowledge, none
of the funds of Developer have been derived from any unlawful activity with the result that the
investment in Developer is prohibited by Laws or that the Agreement is in violation of Laws.
Developer covenants and agrees that at no time during the Term shall a Developer Member with a
twenty percent (20%) or more direct or indirect interest in Developer be a Prohibited Person.
Developer shall reimburse Port District for all reasonable costs, including, without limitation,
attorneys’ fees, resulting from Developer’s failure to comply with this Section 20.3. If Developer
receives written notice that any of Developer’s Members (other than any such Person that holds an
interest in Developer through publicly traded securities) is a Prohibited Person, then Developer shall
promptly use Developer’s best and commercially reasonable efforts to cause such Person to divest
such Person’s interests in Developer. Notwithstanding any limits set forth in this Section 20.3, any
Person who is blocked under the USA Patriot Act shall be blocked to the full extent required under
the USA Patriot Act and any regulations promulgated thereunder.
ARTICLE XXI
EVENTS OF DEFAULT AND REMEDIES
21.1. Events of Default. The occurrence of any one (1) or more of the following events
shall constitute an event of default by Developer hereunder (each, an “Event of Default”):
21.1.1. Failure to Pay. Failure by Developer to pay, when due, any payment,
and/or charge that Developer is required to pay hereunder, where such failure continues for a period
of five (5) days after written notice thereof from another Party to this Agreement.
21.1.2. Failure to Perform. Failure by Developer to perform any express or implied
covenants or conditions in this Agreement (other than as provided in the other subsections of this
Section 21.1), where such failure continues for thirty (30) days after written notice thereof from
another Party to this Agreement; provided that, if the nature of such failure is such that the same
cannot reasonably be cured within such thirty (30) day period, and Developer diligently commences
such cure within such thirty (30) day period and thereafter diligently proceeds to rectify and cure
such failure, then such failure shall not constitute an Event of Default; and provided, further, that if
such failure is due to a Force Majeure Event in accordance with Section 5.5, then such failure shall
not constitute an Event of Default for so long as the Force Majeure Event or the actual collateral
effects of such Force Majeure Event exists.
21.1.3. Bankruptcy Event. The occurrence of a Bankruptcy Event.
21.1.4. Cross-Defaults During the Term. The occurrence or existence of an Event
of Default as defined in and in accordance with the Sublease or an Event of Default as defined in and
in accordance with the Ground Lease, in each case, at any time during the Term; provided that in the
event an Event of Default under the Sublease is cured pursuant to the terms of the Sublease, such
Event of Default shall be deemed cured hereunder and in the event an Event of Default under the
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Ground Lease is cured pursuant to the terms of the Ground Lease, such Event of Default shall be
deemed cured hereunder.
21.1.5. Breach of a Representation or Warranty.
21.1.5.1. Any representation or warranty by Developer under this
Agreement or the Exhibits attached hereto, including any representation or warranty made in any
payment request or certification provided or delivered by Developer pursuant to this Agreement, is
not true, correct or complete in any material respect and Developer does not cure such deficiency
within ten (10) Business Days after it actually knows about such deficiency, or within ten (10)
Business Days after Developer receives written notice thereof; provided that, if the nature of such
breach is such that the same cannot reasonably be cured within such ten (10) Business Day period,
and Developer diligently commences such cure within such ten (10) Business Day period and
thereafter diligently proceeds to rectify and cure such breach, then such failure shall not constitute an
Event of Default.
21.1.5.2. Any representation or warranty by the Completion Guarantor
under the Completion Guaranty is not true, correct or complete in any material respect and Developer
does not, or does not cause the Completion Guarantor to (as the case may be), cure such deficiency
within ten (10) Business Days after it actually knows about such deficiency, or within ten (10)
Business Days after Developer receives written notice thereof; provided that, if the nature of such
breach is such that the same cannot reasonably be cured within such ten (10) Business Day period,
and Completion Guarantor diligently commences such cure within such ten (10) Business Day period
and thereafter diligently proceeds to rectify and cure such failure, then such breach shall not
constitute an Event of Default; provided that without limiting the Public Entities’ rights and remedies
with respect to the original undersigned Developer under this Agreement or the Completion
Guarantor, during the effectiveness of any New Agreement or the while any Foreclosure Purchaser
has assumed and is holding Developer’s interest under this Agreement or is holding the controlling
interest in Developer, no failure or breach by the Completion Guarantor under the Completion
Guaranty shall constitute a breach, default or Event of Default under this Agreement.
21.1.6. Specified Defaults. The occurrence of any event expressly stated to
constitute an Event of Default under this Agreement.
21.2. Remedies for Events of Default. Upon any Event of Default but subject to
Section 21.2.4, the Public Entities may, in addition to all other rights and remedies afforded to the
Public Entities hereunder or by law or in equity, take any one or more of the following actions:
21.2.1. Termination of Agreement. Terminate this Agreement by giving Developer
written notice thereof. Failure by the Public Entities to enforce one or more of the remedies herein
provided upon an Event of Default shall not be deemed or construed to constitute a waiver of such
Event of Default.
21.2.2. Perform Acts on Behalf of Developer. Perform any act that Developer is
obligated to perform under this Agreement (and enter upon the Site (and, until Acceptance of the
applicable Developer’s Phase 1A Infrastructure Improvements, the Developer’s Phase 1A
Infrastructure Improvements Site) in connection therewith if necessary) in Developer’s name and on
Developer’s behalf, without being liable for any claim for damages therefor, and Developer shall
reimburse each Public Entity on demand for any expenses which such Public Entity may incur in
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thus effecting compliance with Developer’s obligations under this Agreement (including, but not
limited to, collection costs and legal expenses), plus interest thereon at the Default Rate.
21.2.3. Assignment of Plans and Other Matters. Require Developer to, in which
case Developer shall, (i) at Developer’s sole cost and expense, assign and transfer to the Authority all
of Developer’s right, title and interest in and to all plans, drawings, specifications, permits,
approvals, warranties, entitlements, and other similar property and instruments relating to the Site,
free and clear of liens and claims by third parties, in connection with and (ii) execute and deliver to
the Authority, within five (5) Business Days of the Authority’s request, in a form provided by and
acceptable to the Authority, an instrument confirming the Assignment and transfer of such property
and interests to the Authority and, within such five (5) Business Day period, to deliver the originals
of such plans, drawings, specifications, permits, approvals, warranties, entitlements, and other similar
property and instruments relating to the Site to the Authority. Developer agrees to reasonably
cooperate with the Authority at no cost or expense to the Authority in seeking any consent from the
preparer of any plans, drawings, specifications, permits, approvals, warranties, entitlements, and
other similar property and instruments relating to the Site, which may be required for the Authority to
rely on such plans, drawings, specifications, permits, approvals, warranties, entitlements, and other
similar property and instruments relating to the Site.
21.2.4. Certain Limitations. The Public Entities shall not have the right to
terminate this Agreement as a result of any Event of Default arising solely under Section 21.1.2 or
Section 21.1.4 of the Agreement that is susceptible to cure (but will retain all other remedies) if the
following conditions apply: (i) (A) the Developer has, in good faith, by written notice served on the
Public Entities within thirty (30) days of receipt of any notice from any Public Entity of such Event
of Default, contested that (x) Developer has failed to perform any covenant or condition required to
be performed by it under this Agreement or (y) an Event of Default as defined in the Sublease or an
Event of Default as defined in the Ground Lease has occurred or is continuing, as applicable, and (B)
there has been no final determination by a court with jurisdiction that (x) the Developer has in fact
failed to perform any covenant or condition required to be performed by it under this Agreement and
that such failure has had a material adverse effect on one or more of the Public Entities or the Project
or (y) an Event of Default as defined in the Sublease or an Event of Default as defined in the Ground
Lease has occurred or is continuing, and that such Event of Default has had a material adverse effect
on one or more of the Public Entities or the Project, as applicable; or (ii) after any final determination
by a court with jurisdiction that (x) the Developer has in fact failed to perform any covenant or
condition required to be performed by it under this Agreement and that such failure has had a
material adverse effect on one or more of the Public Entities or the Project or (y) an Event of Default
as defined in the Sublease or an Event of Default as defined in the Ground Lease has occurred or is
continuing, and that such Event of Default has had a material adverse effect on one or more of the
Public Entities or the Project, as applicable, Developer promptly (and in all events, within thirty (30)
days of such final determination), cures such failure, such Event of Default as defined in the Sublease
or such Event of Default as defined in the Ground Lease, as applicable. Without limiting the
foregoing, the Public Entities shall not have the right to terminate this Agreement as a result of any
Event of Default arising solely under Section 21.1.4 unless the Sublease or the Ground Lease, as
applicable, has been terminated in accordance with its terms. For purposes of this Section 21.2.4, a
final determination by a court with jurisdiction” shall mean the entry of a final judgment by the trial
court or equivalent tribunal in any such proceeding. For clarification, the thirty day cure period
following such “final determination” within which Developer’s failure to perform must be cured in
order to avoid the Public Entities’ right to terminate pursuant to this Section shall commence
immediately upon entry of such judgment by the trial court and shall not be stayed, delayed or
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otherwise postponed during any appeal periods or other post-judgment proceedings (e.g., Motion for
New Trial or JNOV) that Developer might pursue following entry of such judgment.
For purpose of this Section 21.2.4, “material adverse effect on one or more of the Public
Entities or the Project” shall mean, but shall expressly not be limited to, (i) a failure to comply with
any provision of the Port Act, including but not limited to Port Act provisions limiting use of the
Project Site or the Improvements, (ii) a material failure to comply with any CDP (as may be amended
from time to time) applicable to the Project Site and Improvements, (iii) a material failure to comply
with the Port Master Plan, or any amendment thereto, (iv) a material failure to comply with any
provision of this Agreement related to Hazardous Materials, (v) [reserved], (vi) a failure to comply
with any provision of this Agreement relating to PWL requirements, (vii) a failure to comply with
any provision of this Agreement that results or could reasonably be expected to result in a public
health or safety issue, (viii) a failure to comply with any provision of this Agreement the effect of
which may be that any Public Entity Party has incurred or could reasonably be expected to incur
criminal liability, (ix) a failure by Developer to comply with any provision of this Agreement that
could reasonably be expected to result in a default by the Authority with respect to payment of debt
service on the Authority Bonds or under the Indenture, a default by the City under the Facility Lease,
a default by the Port District under the Support Agreement, or a default by the Financing District
under the Loan Agreement, or (x) a failure to comply with any provision of this Agreement that
could reasonably be expected to result in significant irreparable harm or injury to any Public Entity.
Nothing in this Section 21.2.4 shall prejudice Developer’s ability to appeal any decision of any court,
provided, that, Developer’s appeal shall not limit the Public Entities’ ability to pursue any remedies
available to the Public Entities under this Agreement.
21.3. Sweetwater Park. Port District shall not be deemed in default or breach for failure to
Sufficiently Complete Sweetwater Park on or prior to the Sweetwater Park End Date. Developer’s
exercise of either the First Sweetwater Park Option or the Second Sweetwater Park Option shall be
Developer’s sole and exclusive remedy for any failure of Port District or Developer to Sufficiently
Complete Sweetwater Park. Developer, Authority, Special Tax District, and City acknowledge and
agree that the Port District shall not be liable to Developer, Authority, Special Tax District, or City or
any other Person for monetary damages (including but not limited to contract damages,
consequential, incidental or punitive damages, lost profits, lost business opportunity, or any other
type of monetary damage regardless of form) for Port District’s failure to Sufficiently Complete
Sweetwater Park. This Section 21.3 is not intended to limit (i) Developer’s ability to recover its costs
from Authority that are Developer’s Phase 1A Infrastructure Improvements Costs (including, for the
avoidance of doubt, costs incurred by Developer to Sufficiently Complete Sweetwater Park or
otherwise construct Sweetwater Park in accordance with the Sweetwater Park Materials) or
ii) Developer’s right to the remedy of specific performance of the Port District’s obligations under
Section 2.3.2.2 and 2.3.3.2.
21.4. Reserved.
21.5. Authority Events of Default. The occurrence of any one (1) or more of the following
events shall constitute an event of default by Authority hereunder (each, an “Authority Event of
Default”):
21.5.1. Failure to Pay. Failure by Authority to pay, when due, any payment, and/or
charge that Authority is required to pay hereunder, where such failure continues for a period of five
5) days after written notice thereof from Developer.
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21.5.2. Failure to Perform. Failure by Authority to perform any express or implied
covenants or conditions in this Agreement (other than as provided in the other subsections of this
Section 21.5), where such failure continues for thirty (30) days after written notice thereof from
Developer; provided that, if the nature of such failure is such that the same cannot reasonably be
cured within such thirty (30) day period, and Authority diligently commences such cure within such
thirty (30) day period and thereafter diligently proceeds to rectify and cure such failure, then such
failure shall not constitute an Event of Default.
21.6. Remedies for Authority Events of Default (Rent Offset). Upon any Authority Event
of Default, Developer may, in addition to all other rights and remedies afforded to Developer
hereunder or by law or in equity, offset against Rent (excluding Advance Rent under the Sublease)
under the Sublease any amount that Authority has failed to pay when due hereunder and that has not
been paid by the Port District or the City under Section 21.7.
21.7. Payment Sources for Convention Center. In the event Authority fails to pay any
Convention Center Contract Sum to Developer pursuant to Section 9.2 of this Agreement or any
interest due to Developer pursuant to Sections 9.2.3 and 9.2.4.2(b) of this Agreement (collectively,
the “Specified Obligations”), then such Convention Center Contract Sum or interest, as applicable,
will be payable (a) from any amounts remaining on deposit in the 2022A Construction Account,
including the 2022A Bond Proceeds Subaccount and the Public Entity Contribution Subaccount
maintained therein (collectively, the “Indenture Funds”); (b) in the event such failure to pay is a
result of the misappropriation of Indenture Funds that are in the possession or control of the City or
that have been directed for City purposes by affirmative action of the City Council, then to the extent
of such misappropriated Indenture Funds, from any source of funds legally available to the City,
including general fund monies, to make such payments; (c) in the event such failure to pay is a result
of the misappropriation of Indenture Funds that are in the possession or control of the Port District or
that have been directed for Port District purposes by affirmative action of the BPC, then to the extent
of such misappropriated Indenture Funds, from any source of funds legally available to the Port
District to make such payments; (d) with respect to the Authority, the City or the Port District,
respectively from amounts received thereby or otherwise available to the applicable Public Entity, if
any, from the proceeds of a fidelity bond or crime insurance policy covering acts by their respective
officers or employees that cause a misappropriation from the 2022A Construction Account or
subaccounts therein, or amounts recovered from the Person that misappropriated such moneys; and
e) from amounts on deposit in the Authority Surplus Fund, if and when available from time to time.
The City shall promptly pay to the Developer the amounts set forth in the foregoing clauses (b) and
d), if any, to the extent such amounts relate to the City. The Port District shall promptly pay to the
Developer the amounts set forth in the foregoing clauses (c) and (d) if any, to the extent such
amounts relate to the Port District. The Authority shall promptly pay to the Developer the amounts
set forth in the foregoing clause (d), if any, to the extent such amounts relate to the Authority. The
Parties intend that the Port District and the City be deemed principal obligors (and not guarantor)
with respect to any payment obligations they may have pursuant to the terms of this Section and
without limiting the express obligations of the Port District and the City under this Agreement) the
Parties agree not to assert that the Port District or City are guarantors or sureties of the Authority’s
obligation hereunder under applicable law; provided, however, in an abundance of caution, in case,
contrary to such intention, it is determined that the Port District and City are guarantors with respect
to the foregoing payment obligations, each of Port District and City hereby waive (i) until Full
Payment, any rights of subrogation, reimbursement, indemnification, and contribution with respect to
the Authority and (ii) any other rights and defenses that are or may become available to Port District
or City, as applicable, by reason of California Civil Code §§ 2808, 2809, 2810, 2819, 2832, 2839
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but only to the extent of a mere offer of performance in full by Authority without the capacity to
perform or actual tender of performance, or where Developer has rejected an Authority offer to
perform as inadequate), 2845 and 2855 (but only with respect to Specified Disputes). Port District
and City expressly reserve the right to assert, each on their own behalf, any defense(s) Authority may
have under the terms of this Agreement to excuse or reduce any Authority obligation to pay
Indenture Funds to Developer. The Authority shall use commercially reasonable efforts to pursue
recovery from (a) individuals responsible for misappropriation of Indenture Funds and (b) any crime
insurance maintained by the Authority in connection with misappropriation of Indenture Funds. Port
District shall use commercially reasonable efforts to pursue recovery from (a) individuals employed
by the Port District who are responsible for misappropriation of Indenture Funds and (b) any crime
insurance maintained by the Port District in connection with misappropriation of Indenture Funds.
City shall use commercially reasonable efforts to pursue recovery from (a) individuals employed by
the City who are responsible for misappropriation of Indenture Funds and (b) any crime insurance
maintained by the City in connection with misappropriation of Indenture Funds. The City and the
Port District’s only obligation to pay the Specified Obligations is set forth in this Section 21.7.
ARTICLE XXII
ASSIGNMENT PARTICIPATION FEE
22.1. Assignment Participation Fee. Upon each (a) Assignment of the Sublease pursuant to
Section 10.7 of the Sublease, (b) a change in the composition of the direct or indirect ownership of
Developer, and (c) a sublease under the Sublease of all or Substantially All of the Facility (defined in
the Sublease), Developer shall pay to the Port District, as the owner of the Site, a fee (the
Assignment Participation Fee”) in an amount equal to one percent (1%) of the Assignment
Proceeds of such transaction; provided, however, that Developer shall not pay the Assignment
Participation Fee (i) if one or more of the members of Developer (as of the date of Completion of the
Convention Center and the City’s issuance of the final certificate of occupancy for the Convention
Center) which shall include, as applicable (A) each sibling of such Person, the spouse of such Person,
and each parent, child, grandchild or great-grandchild of such Person (including relatives by
marriage); (B) any trust for the benefit of such Person or any of the foregoing members of his or her
family; (C) where such Person is a trust, any beneficiary of the trust of any of the foregoing family
members of a beneficiary of the trust, or any other trust established for the benefit of any of the
foregoing; and (D) each Person that Controls, is Controlled by, or in under common Control of, such
Person or any of the foregoing Persons (each, an “Original Member”), collectively, directly or
indirectly, owns at least a ten percent (10%) ownership interest in the Initial Project Improvements
including through direct or indirect ownership in Developer), (ii) in the case of any Transfer in
connection with any foreclosure on the Permitted Encumbrance or any action in lieu of foreclosure
by a Permitted Lender or to a Foreclosure Purchaser, which is a Permitted Lender or an SPE Lender
Affiliate or the immediately subsequent Transfer by such Foreclosure Purchaser that is a Permitted
Lender or an SPE Lender Affiliate to any other Person permitted by the terms of Article IX of the
Sublease and this Agreement, (iii) in the case of a change in the composition of the direct or indirect
ownership of Developer as a result of an Equity Collateral Enforcement Action by a Permitted
Mezzanine Lender or (iv) in the case of a change in the composition of the direct or indirect
ownership of Developer resulting from a transfer of ownership interests traded on a recognized
public exchange. Prior to any Public Entity’s consent to any transaction subject to an Assignment
Participation Fee, Developer shall deliver to the Port District a written statement showing the
calculation of the Assignment Participation Fee owed to the Port District from Developer based on
the terms of the transaction and an organizational chart showing all Persons holding at least a twenty
percent (20%) direct or indirect ownership interest in the Initial Project Improvements prior to such
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transaction and after such transaction. The statement of the calculation of the Assignment
Participation Fee shall contain such detail as may be reasonably requested by the Port District to
verify the calculation of the Assignment Participation Fee. Developer shall pay in full to the Port
District the Assignment Participation Fee that is due to the Port District concurrent with the
completion of the transaction. The obligation to pay the Assignment Participation Fee shall be a joint
and several obligation of the transferee and transferor.
For the purposes of this Section 22.1, the term “Assignment Proceeds” shall mean the
purchase price or other consideration that is: (a) paid (either in cash or by an assumption of debt or
other consideration and, if paid over time, the present value of the total consideration using the
discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent
1%)) to the Developer and/or holders of direct or indirect interests in Developer and (b) fairly
attributable to Developer’s interest in the Sublease and the Initial Project Improvements in
connection with the subject transaction less the sum of (x) any reasonable prorations, closing costs or
other customary deductions to the purchase price for which the seller is responsible, (y) the certified
cost of designing, developing and constructing the Initial Project Improvements as of the time of the
Completion of the Initial Project Improvements and (z) one hundred (100) times the amount of any
Assignment Proceeds that have been previously paid to the Port District, which sum shall be prorated
in the case of an assignment of a portion of the Initial Project Improvements, which sum shall be
prorated in the case of an assignment of a portion of the Initial Project Improvements.
Notwithstanding the foregoing, if at any time an Assignment Participation Fee is payable pursuant to
this Agreement and an Assignment Participation Fee (as defined in the Ground Lease) is payable
pursuant to the Ground Lease, then Developer shall, in its reasonable discretion, determine the
allocation of the assignment proceeds between the Assignment Proceeds with respect to this
Agreement and the Assignment Proceeds (as defined in the Ground Lease) with respect to the
Ground Lease.
Upon the request of the Port District from time to time (which request shall not be made
more frequently than once per year), except in the case of Completion of the Convention Center, in
which case Developer shall deliver to the Port District such schedule, and such evidence, without
request from the Port District, within five (5) days of Completion of the Convention Center,
Developer shall provide the Port District with a schedule listing the name and mailing address of
each Person holding at least twenty percent (20%) of the direct or indirect ownership interests in
Developer or the Initial Project Improvements and, if then true, evidence that one or more Original
Members collectively holds at least ten percent (10%) of the direct or indirect ownership interest in
Developer or the Initial Project Improvements. In the event that such Person is a trust, Developer
shall include in such schedule the name and mailing address of each trustee of said trust, together
with the name and mailing address of each beneficiary of said trust.
22.2. Assignment and Collateral Assignment. No Party shall assign its interest in this
Agreement except to a permitted assignee to which such Party has assigned all of its interests in the
Convention Center Leases entered into by such Party. No Party shall assign its interest in any of the
Convention Center Leases unless the assignee assumes all of such Party’s obligations under this
Agreement arising from and after the date of such assignment pursuant to an assignment and
assumption agreement reasonably acceptable to the other Parties. Notwithstanding anything to the
contrary in this Section 22.2, the Developer may assign all or a part of its entire rights, interests and
obligations hereunder, or create a security interest over its rights and interests hereunder, to the
Permitted Lenders to whom Developer has assigned or collaterally assigned, or granted a lien or
leasehold deed of trust in, the Sublease and the Ground Lease for the purpose of securing financing
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for the Convention Center, Parking Improvements, and the Resort Hotel. The Public Entities hereby
consent to the granting by the Developer to such Permitted Lenders of security interests in this
Agreement. Each Public Entity acknowledges that a Permitted Lender may require that each Public
Entity execute a consent to collateral assignment of this Agreement in connection with the Public
Entity’s consent or deemed consent to a Permitted Financing Encumbrance. As part of such
collateral assignment, each Public Entity shall agree, in a manner materially and substantially
consistent with the rights afforded to Permitted Lenders under Article IX of the Sublease and Article
X of the Ground Lease, (i) to provide such Permitted Lenders notice of and opportunity to cure the
Developer’s defaults hereunder, (ii) to allow such Foreclosure Purchaser, including a Permitted
Lenders or SPE Lender Affiliates or any successful bidder that is not a Permitted Lenders or SPE
Lender, to assign and reassign all of the Developer’s rights hereunder, (iii) to provide for the Public
Entities and the Foreclosure Purchaser to enter into a new agreement on the terms and conditions set
forth in this Agreement in connection with a New Lease pursuant to Section 10.3.2 of the Ground
Lease or a New Sublease pursuant to Section 9.3(b) of the Sublease; and (iv) to provide for other
customary lender protection provisions that are not in violation of applicable laws or regulations.
Each Public Entity shall, upon reasonable request of the Developer, shall execute such consents to or
acknowledgements of such assignments by the Developer and other customary documents as
Developer or its Permitted Lenders reasonably require in connection with this Agreement and the
financing of the Convention Center, Parking Improvements, and the Resort Hotel provided they are
materially and substantially consistent with the provisions of Article X of the Ground Lease and
Article IX of the Sublease and do not conflict with, modify, or amend any of the terms of this
Agreement, the Sublease, or the Ground Lease. As a condition to acquiring title in connection with a
foreclosure proceeding (or assignment in lieu thereof) or any assignment following a foreclosure of
the tenant’s interest under the Ground Lease, sub-sublessee’s interest in the Sublease, or Developer’s
interest in the Project Implementation Agreement, Permitted Lender, SPE Lender Affiliate or
Foreclosure Purchaser, as and if applicable, shall assume in writing the Ground Lease, Sublease, and
this Agreement, and such Ground Lease, Sublease, and this Agreement, shall continue in full force
and effect, in each case, subject to the terms thereof (including, without limitation, Section 10.6.2 of
the Ground Lease). Without limiting the forgoing provisions of this Section 22, a foreclosure (or
assignment in lieu thereof) of the tenant’s interest in the Ground Lease, sub-subtenant’s interest in
the Sublease, or Developer’s interest in this Agreement by the Permitted Lender must be
accompanied by a foreclosure (or assignment in lieu thereof) of all such interests, and following such
foreclosure (or assignment in lieu thereof), tenant’s interest in the Ground Lease, sub-subtenant’s
interest in the Sublease, or Developer’s interest in this Agreement may only be assigned to the same
Person. Following a foreclosure of Developer’s interest in the Site, Developer’s interest in this
Agreement may only be assigned to a permitted assignee that has acquired Developer’s interest in the
Sublease and who expressly assumes the Developer’s obligations under the Sublease and this
Agreement in an assumption agreement reasonable acceptable to the City and the Port District.
22.3. Non-Disturbance Agreement. With regard to the Hotel Management Agreement with
Marriott International, Inc., a Delaware corporation, that has been consented to by the Port District
and consented to or deemed to be consented to by the City, on the Commencement Date, and prior to
or concurrently with the execution of any other Hotel Management Agreement consented to by the
Port District and consented to or deemed to be consented to by the City, the Port District, the City
and the Authority shall enter into a non-disturbance agreement with the Hotel Operator substantially
in the form attached hereto as Exhibit Y and, if the Hotel Operator is not Marriott, based on terms
reasonably acceptable to the Port District, the City, the Authority and Hotel Operator at that time.
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ARTICLE XXIII
NONDISTURBANCE
23.1. Port District Nondisturbance of Lessee and Sublessee Rights under the Convention
Center Leases. In the event the Site Lease terminates, is rejected in any Bankruptcy Case or
otherwise ceases to exist, in each such case, prior to the expiration of the Sublease Term (and the
Sublease has not terminated in accordance with its terms as a result of an Event of Default by the
Developer thereunder), the Port District shall recognize the Facility Lease as, and the Facility Lease
shall be deemed to be, a direct lease between the Port District, as lessor, and the City, as lessee, and
the Port District shall not disturb the City’s leasehold interest or possession of the Site (as defined in
the Facility Lease) or the Convention Center under, and on the terms and conditions set forth in, the
Facility Lease, and the Port District shall continue to recognize and treat the Sublease as a sublease
between the City, as sublessor, and the Developer, as sublessee, and the City shall attorn to and
recognize the Port District as the City’s lessor under, and on the terms and conditions set forth in, the
Facility Lease. In the event the Facility Lease terminates, is rejected in any Bankruptcy Case or
otherwise ceases to exist, in each such case, prior to the expiration of the Sublease Term (and the
Sublease has not terminated in accordance with its terms as a result of an Event of Default by the
Developer thereunder), the Port District shall recognize the Sublease as, and the Sublease shall be
deemed to be, a direct lease between the Authority, as lessor, and the Developer, as lessee, and the
Developer shall attorn to and recognize the Authority as the Developer’s lessor under, and on the
terms and conditions set forth in, the Sublease. In the event both the Site Lease and the Facility
Lease terminate, are rejected in any Bankruptcy Case and/or otherwise cease to exist, in each such
case, prior to the expiration of the Sublease Term (and the Sublease has not terminated in accordance
with its terms as a result of an Event of Default by the Developer thereunder), (i) the Port District
shall recognize the Sublease as, and the Sublease shall be deemed to be, a direct lease between the
Port District, as lessor, and the Developer, as lessee, and the Port District shall not disturb the
Developer’s leasehold interest or possession of the Site (as defined in the Sublease) or the
Convention Center under, and on the terms and conditions set forth in, the Sublease, and the
Developer shall attorn to and recognize the Port District as the Developer’s lessor under, and on the
terms and conditions set forth in, the Sublease. Each Permitted Lender is an express third party
beneficiary of this Section 23.1 and is entitled to enforce this Section 23.1.
23.2. Authority Nondisturbance of Lessee and Sublessee Rights under the Convention
Center Leases. In the event the Facility Lease terminates, is rejected in any Bankruptcy Case or
otherwise ceases to exist, in each such case, prior to the expiration of the Sublease Term (and the
Sublease has not terminated in accordance with its terms as a result of an Event of Default by the
Developer thereunder), the Authority shall recognize the Sublease as, and the Sublease shall be
deemed to be, a direct lease between the Authority, as lessor, and the Developer, as lessee, and the
Authority shall not disturb the Developer’s leasehold interest or possession of the Site (as defined in
the Sublease) or the Convention Center under, and on the terms and conditions set forth in, the
Sublease, and the Developer shall attorn to and recognize the Authority as the Developer’s lessor
under, and on the terms and conditions set forth in, the Sublease. Each Permitted Lender is an
express third party beneficiary of this Section 23.2 and is entitled to enforce this Section 23.2.
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ARTICLE XXIV
OPERATION OF THE SITE AND THE CONVENTION CENTER
24.1. Approved Agreements. Pursuant to the Sublease, Developer shall take possession of
the Site subject to the agreements, licenses, right of entry agreements, and other documents set forth
in Exhibit S attached hereto and incorporated herein by reference (“Approved Agreements”).
24.2. Reservations. The Port District Parties and any third party requested by Port District
shall have the right to enter the Site and the Improvements for the purpose of constructing, installing,
maintaining, repairing, replacing or removing monitoring wells during normal business hours and
upon a three (3) Business Days’ prior notice to Developer (except in the case of an emergency in
which case no prior notice shall be required but each of such Port District Parties and each of such
third parties shall notify Developer and, prior to the Completion of the Resort Hotel and Parking
Improvements, Developer’s Risk Construction Manager thereof by phone prior to entering the Site)
and Port District shall, and shall cause each of such Port District Parties and each of such third parties
to: (a) comply with all applicable security and safety procedures of Developer of which Developer
informs Port District in writing and with which such Port District Party and such third party can
reasonably comply, and (b) use commercially reasonable efforts to minimize any interference with
Developer’s operation and use of the Site, the Improvements, the Resort Hotel, the Parking
Improvements, and the Ground Lease Property, while on the Site and at the Improvements, and, so
long as such Port District Parties and such third parties comply with such requirements and do not
cause damage to the Site or any Improvements, separate and apart from the construction, installation,
maintenance, repairing, replacing, and removal of the monitoring well in or from the Site, Developer
shall not be entitled to any monetary payment or other remuneration for incidental costs imposed on
Developer resulting from, any such access to the Site or the Improvements by such Port District
Parties or such third parties. The Port District Parties shall not cause any damage to the Site or any
Improvements in connection with the construction, installation, maintenance, repairing, replacing and
removal of any monitoring wells in or from the Site that adversely affects the use, operation or
appearance of the Site or any of the Improvements. Port District shall reasonably cooperate with
Developer in determining the location of any new monitoring well that is required by an order of the
SDRWQCB. Except in the case of an emergency, Port District shall consult with Developer to ensure
that the interference with Developer’s operation and use of the Site, the Improvements, the Resort
Hotel, the Parking Improvements, and the Ground Lease Property is minimized to the extent
commercially reasonable efforts permit.
Port District and Developer shall independently have the right to grant on reasonable terms
and notice to the other, a license or easement or other access agreement to Rohr, Inc., a United
Technologies Aerospace Systems Company (together with its successors and assigns, “Rohr”) for
Rohr and its authorized contractors and agents to access the Site upon reasonable prior notice to
Developer for sampling, operation, maintenance, relocation, replacement, removal and closure of
groundwater monitoring, soil vapor or extraction wells or other Remediation Facilities (as defined in
the Relocation Agreement); provided, however, that if Port District grants a license or easement or
other access agreement to Rohr, it shall first consult with Developer to attempt reasonably and in
good faith, and shall use reasonable efforts, to avoid interference with Developer’s day-to-day
operations on the Site which interference is (a) unreasonable or (b) both material and reasonably
avoidable. Developer shall have the right to coordinate with Rohr to install, relocate, and/or remove
any Remediation Facilities (as defined in the Relocation Agreement), subject to (a) Rohr securing
any necessary approvals from the SDRWQCB and (b) Developer providing advance notice to Port
District that describes the proposed installation, relocation and/or removal of the Remediation
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Facilities and requests Port District’s approval thereof (“Remediation Facilities Notice”) and
receiving Port District’s written approval thereof (which approval shall not be unreasonably
withheld, conditioned or delayed); provided, however, that, within twenty (20) days after Developer
provides any Remediation Facilities Notice to Port District, Port District shall provide notice to
Developer (“Remediation Facilities Response”) that (i) approves the activities described in such
Remediation Facilities Notice or (ii) denies Port District’s approval of some or all of the activities
described in such Remediation Facilities Notice and describes in reasonable detail the reasonable
basis for such denial; and provided, further, that if Port District fails to provide a Remediation
Facilities Response to Developer within such twenty- (20-) day period, then Developer may re-
deliver its Remediation Facilities Notice to Port District and, if Port District fails to provide a
Remediation Facilities Response thereto within ten (10) days after Developer provides such re-
delivered Remediation Facilities Notice to Port District, then Port District’s approval of such
Remediation Facilities Notice shall be deemed granted. Developer and Port District acknowledge
and agree that neither Developer nor Port District shall be responsible to the other for any incidental
costs or expenses (e.g., security, overtime, inspection, or management-related expenses) incurred by
the other Party arising from or related to providing Site access to Rohr and its authorized contractors
and agents for the sampling, operation, maintenance, relocation, replacement, removal and closure of
the groundwater monitoring, soil vapor or extraction wells or other Remediation Facilities (as
defined in the Relocation Agreement).
Port District shall present to the BPC for its reasonable consideration any reasonable request
by Developer in writing for an easement on, over, under or across the Site to others, including,
without limitation, any Governmental Authority, for the purpose of constructing, installing,
maintaining, repairing, replacing and removing utility systems in connection with the development,
construction, use or operation of the Site and the Improvements; provided, however, that, in each
case, (A) the term of such easement shall not exceed the Term; (B) Port District shall not be
responsible for any cost or expense relating to such easement, including without limitation,
maintenance thereof; (C) Port District shall have the right to terminate such easement at no cost or
expense to Port District in the event of an early termination of this Agreement; (D) Port District shall
have the right to relocate such easement, at any time, in Port District’s sole and absolute discretion, at
the grantee’s sole cost and expense with respect to the first relocation of such easement and at Port
District’s sole cost and expense with respect to any subsequent relocation of such easement, unless
agreed to otherwise by Port District and the grantee (provided that Port District shall not consider
whether the prospective grantee has agreed to bear such costs for any relocation of such easement
after the first relocation in determining whether to grant such an easement); (E) Port District shall
have the right to approve the location and dimensions of the easement in Port District’s reasonable
discretion; and (F) at Port District’s election, the grantee shall (at the grantee’s own cost and
expense) remove any utility system constructed or installed pursuant to such easement at the
expiration or earlier termination of the Ground Lease. The City and the Authority hereby consent to
any such easement granted by the Port District.
No Public Entity shall, without the prior written consent of Developer and, while any
Permitted Financing Encumbrance remains outstanding or during any New Lease Period, each
Permitted Lender, which consent shall not be unreasonably withheld, conditioned or delayed,
encumber the Site or the Improvements during the Term or during any New Lease Period, except for
i) any documents effectuating public financing by the Port District, the City, and the Authority,
including any refinancing thereof, of the Site or the Developer’s Phase 1A Infrastructure
Improvements that Developer has agreed to prior to the Commencement Date, or the Convention
Center that Developer has agreed to prior to the Expansion Date, or that Developer agrees to, in
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Developer’s reasonable discretion, during the Term, except for any such document that may impose
any new obligation, limitation or prohibition on Developer, the Site, the Improvements, the
Convention Center prior to the Expansion Date, the Developer’s Phase 1A Infrastructure
Improvements, this Agreement or any Contemporaneous Agreement, in which case Developer’s
consent shall be in Developer’s sole discretion, (ii) the Special Tax District and any modifications
thereto that Developer agrees to, in Developer’s reasonable discretion, (iii) as permitted under this
Section 24.2, or (iv) with respect to Port District only, as required by Laws (provided, that, any such
encumbrance under this subsection (iv) shall not result in an encumbrance that is senior in right of
priority to that of any Convention Center Lease).
The Port District and Developer agree to use commercially reasonable efforts to finalize and
record that certain “Easement for Utility Purposes” between the San Diego Gas & Electric Company,
a California corporation (“SDG&E”) and the Port District (“SDG&E Easement”) consistent with the
direction given to Port District staff by the Board of Port Commissioners (Board) at the May 10,
2022 meeting of the BPC. The Port District, the City, the Developer, and the Authority hereby
consent to the SDG&E Easement and agree to subordinate their leasehold interests in this Agreement
and the Convention Center Leases to the SDG&E Easement.
24.3. Cooperation in connection with Condemnation. Each Party shall cooperate in good
faith to ensure an award of fair market value is obtained in the event of any taking by eminent
domain or condemnation with respect to the Convention Center. Each Party shall use commercially
reasonable efforts to perform its respective obligations under the Convention Center Leases related to
condemnation and casualty proceeds.
ARTICLE XXV
AS-IS” LEASE AND WAIVERS
25.1. Developer’s Acknowledgment. Developer acknowledges that prior to entering into
this Agreement and the Sublease, Port District has given Developer sufficient opportunity to
consider, inspect and review, to Developer’s complete satisfaction: (1) any and all rights,
appurtenances, entitlements, obligations, and liabilities concerning the Site, including without
limitation any Existing Improvements; (2) the physical condition of the Site, including, without
limitation, the condition and value of any Existing Improvements and the soils, subsoil media, and
ground waters at or under the Site; (3) the risk of climate change and the possible adverse
consequences thereof, including, without limitation, rises in sea level and possible damage to and
destruction of the Site; (4) the development potential of the Site including, without limitation, as may
be affected by the preceding clause (3); (5) the effect of all Laws, including, without limitation, those
concerning land use, environmental quality and maintenance, endangered species, and traffic
regulation; (6) the financial prospects of the Site and local market conditions; (7) Developer’s
determination of the feasibility of Developer’s intended use and enjoyment of the Site; (8) the
presence of any Pre-Existing Hazardous Material and any other contamination of the Site, including
any Existing Improvements, soils, groundwater, water adjacent to San Diego Bay and sediment
adjacent to San Diego Bay; and (9) all other facts, circumstances, and conditions affecting,
concerning or relating to the Site. The land use; the environmental, biological, physical and legal
condition of the Site; the risks associated with possible climate change; the feasibility of Developer’s
intended use and enjoyment of the Site; and such other facts, circumstances and conditions being
collectively referred to herein as the “Condition of the Site”; and, without limitation on any other
provision of this Agreement or the Sublease, Developer expressly assumes the risk that adverse
conditions affecting the Site have not been revealed by Developer’s investigations.
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25.2. Only Express Written Agreements Binding. Each Party acknowledges and agrees
that no Person acting on behalf of a Party is authorized to make, and that except as expressly set forth
in this Agreement and the Contemporaneous Agreements to which such Party is a party, none of the
Public Entity Parties, the Developer Parties nor anyone acting for or on behalf of a Party has made,
any representation, warranty, agreement, statement, guaranty or promise to any other Party, or to
anyone acting for or on behalf of any other Party, concerning the Condition of the Site or any other
aspect of the Site. Each Party further acknowledges and agrees that no representation, warranty,
agreement, statement, guaranty or promise, if any, made by any Person for or acting on behalf of a
Party which is not expressly set forth in this Agreement and the Contemporaneous Agreements as of
the Commencement Date will be valid or binding on such Party.
25.3. As-Is. Developer further acknowledges and agrees that Developer’s execution of this
Agreement shall constitute Developer’s representation, warranty and agreement that as of the
Commencement Date the Condition of the Site has been independently verified by Developer to its
full satisfaction, and that, except to the extent of the express covenants of the City set forth in the
Sublease, Developer will be developing the Site and subleasing the Site based solely upon and in
reliance on its own inspections, evaluations, analyses and conclusions, or those of Developer’s
representatives; and that DEVELOPER IS DEVELOPING THE SITE AND SUBLEASING THE
SITE IN ITS “AS-IS, WITH ALL FAULTS” CONDITION AND STATE OF REPAIR INCLUSIVE
OF ALL FAULTS AND DEFECTS, WHETHER KNOWN OR UNKNOWN, AS MAY EXIST AS
OF THE DEVELOPER’S EXECUTION OF THIS AGREEMENT AND THE SUBLEASE,
INCLUDING ANY EXISTING IMPROVEMENTS. Without limiting the scope or generality of the
foregoing, Developer expressly assumes the risk that the Site does not or will not comply with any
Laws now or hereafter in effect.
25.4. Waivers, Disclaimers and Indemnity.
25.4.1. Waiver and Disclaimer. Developer hereby fully and forever waives, and
Port District hereby fully and forever disclaims, all warranties of whatever type or kind with respect
to the Site, whether expressed, implied or otherwise including, without limitation, those of fitness for
a particular purpose, tenantability, habitability or use.
25.4.2. Port District’s Materials. Developer acknowledges that any information
and reports, including, without limitation, any engineering reports, architectural reports, feasibility
reports, marketing reports, soils reports, environmental reports, analyses or data, or other similar
reports, analyses, data or information of whatever type or kind which Developer has received or may
hereafter receive from Port District Parties (collectively, the “Port District’s Materials”) have been
furnished without warranty of any kind (other than that Port District has delivered true and correct
copies of each of the items set forth on Exhibit T attached hereto as filed in the Office of the Port
District Clerk (“District Documents”)) and on the express condition that Developer will make its
own independent verification of the accuracy, reliability and completeness of such Port District’s
Materials and that Developer will not rely thereon. Accordingly, subject to terms of Section 25.4.3
below, Developer agrees that under no circumstances will it make any claim against, bring any
action, cause of action or proceeding against, or assert any liability upon, Port District Parties or any
of the Persons that prepared or furnished any of the Port District’s Materials as a result of the
inaccuracy, unreliability or incompleteness of, or any defect or mistake in, any such Port District’s
Materials, and Developer hereby fully and forever releases, acquits and discharges Port District
Parties and each Person furnishing such Port District’s Materials of and from, any such claims,
actions, causes of action, proceedings or liability, whether known or unknown (other than in
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connection with Port District’s breach of its representation and warranty set forth in this
Section 25.4.2 that Port District has delivered to Developer true and correct copies of each of the
District Documents.
25.4.3. Release and Waiver.
25.4.3.1. Release. Except to the extent of Claims (as defined below)
against Port District arising from any breach by Port District of its covenants and obligations
expressly provided in this Agreement or the Site Lease, or Port District’s representation and warranty
set forth in Section 22.4.2 of the Ground Lease or Section 18(d)(ii) of the Site Lease, Developer, on
behalf of Developer, its successors and assigns, hereby fully and forever releases, acquits and
discharges Port District of and from, and hereby fully, and forever waives and agrees not to assert
any and all claims, actions, causes of action, suits, proceedings, demands, rights, damages, Related
Costs, losses, judgments, provisional relief, fines, penalties, and fees, including, without limitation,
any and all claims for compensation, reimbursement, or contribution whatsoever (individually and
collectively, “Claims”), whether known or unknown, direct or indirect, foreseeable or unforeseeable,
absolute or contingent, that any Developer Party, Hotel Operator or any of Developer’s successors or
assigns now has or may have or which may arise or be asserted in the future arising out of, directly or
indirectly, or in any way connected with: (i) any act or omission of Port District (or any Person acting
for or on behalf of Port District or for whose conduct Port District may be liable), whether or not
such act be the active, passive or sole negligence of Port District (or any Person acting for or on
behalf of Port District or for whose conduct Port District may be liable), in connection with prior
ownership, maintenance, operation or use of the Site; (ii) any condition of environmental
contamination or pollution at the Site (including, without limitation, any Pre-Existing Hazardous
Material or other contamination or pollution of any soils, subsoil media, surface waters or ground
waters at the Site and any clean-up or abatement order effecting the Site); (iii) to the extent not
already included in clause (ii) above, the prior, present or future existence, release or discharge, or
threatened release, of any Hazardous Materials at the Site (including, without limitation, the release
or discharge, or threatened release, of any Hazardous Materials into the air at the Site or into any
soils, subsoils, surface waters or ground waters at the Site); (iv) the violation of, or noncompliance
with, any Environmental Law or other applicable Law now or hereafter in effect, however and
whenever occurring; (v) the condition of the soil and groundwater at the Site; (vi) the Condition of
the Site, including, without limitation, the condition of any improvements located on the Site
including, without limitation, the structural integrity and seismic compliance of such improvements;
vii) any matters which would be shown on an accurate ALTA land survey of the Site (including,
without limitation, all existing easements and encroachments, if any); (viii) all applicable Laws now
or hereafter in effect; (ix) matters which would be apparent from a visual inspection of the Site; or
x) to the extent not already covered by any of the foregoing clauses (i) through (ix) above, the use,
maintenance, development, construction, ownership or operation of the Site by Port District (or any
Person acting for or on behalf of Port District or for whose conduct Port District may be liable) or
any predecessor(s)-in-interest in the Site of Port District.
25.4.3.2. Waiver of Civil Code Section 1542. With respect to all releases
made by Developer under or pursuant to Section 6.12 of the Sublease and this Article XXV,
Developer hereby waives the application and benefits of California Civil Code § 1542 and hereby
verifies that it has read and understands the following provision of California Civil Code § 1542:
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To the Trustee: Wilmington Trust, National Association
650 Town Center Drive, Suite 800,
Costa Mesa, California 92626
Attention: Corporate Trust Services
Fax No.: (714) 384-4151
To the Administrative Agent: JPMorgan Chase Bank, National Association
Attention: James G. Millard
383 Madison Avenue, 3rd Floor (NY1-M165)
New York, NY 10179
Telephone: 212-270-2198
E-mail: james.g.millard@jpmorgan.com
With a copy to: James Millard at james.g.millard@jpmchase.com and
Shawn Laljit at shawn.laljit@jpmchase.com
To the Port District: Executive Director
San Diego Unified Port District
Post Office Box 120488
San Diego, CA 92112-0488
With a copy to: Director, Real Estate Department
San Diego Unified Port District
Post Office Box 120488
San Diego, CA 92112-0488
Port Attorney
San Diego Unified Port District
Post Office Box 120488
San Diego, CA 92112-0488
To the Financing District: City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
Attention: City Manager
To Developer: RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Ira Mitzner
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With copy to: RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Luke Charlton
and
Latham & Watkins
12670 High Bluff Drive
San Diego, CA 92130
Attention: Steven Levine
Notices to the Trustee shall be given initially either telephonically or by written
telecommunication or electronic mail and shall then be confirmed in writing delivered by first class
mail, postage prepaid. The Authority, the City, the Port District, the Financing District, the
Developer, and the Trustee, by notice given hereunder, may designate different addresses to which
subsequent notices, certificates or other communications will be sent.
26.2. Captions. Captions in this Agreement are inserted for convenience of reference.
They do not define, describe or limit any term of this Agreement.
26.3. No Merger. At any time during the Term, if any of Port District’s, Authority’s,
City’s, or Developer’s estates in the Site become vested in the same owner, none of the Site Lease,
the Facility Lease, or the Sublease shall be terminated by application of the doctrine of merger except
at the express consent of all remaining parties to the Convention Center Leases and with the consent
of any Permitted Mortgage Lender.
26.4. Recording. Unless the Parties agree otherwise in writing in advance, on or before the
Commencement Date, the Parties shall execute a Memorandum of Agreement substantially in the
form of Exhibit R attached hereto (the “Memorandum of Agreement”). Any Party may cause the
Memorandum of Agreement to be recorded at such Party’s sole cost and such Party shall be solely
responsible for any transfer taxes or fees required to be paid in connection with the recording of the
Memorandum of Agreement.
26.5. Port District Transfer. The Authority, the City, and the Developer each
acknowledges that, subject to the Port Act and the oversight of the California State Lands
Commission, Port District may be required by applicable law to transfer all or any portion of its
interest in the Site and in the Site Lease, and the Authority, the City, and the Developer each agrees
that in the event of any such transfer and the express assumption of Port District’s obligations
hereunder and under each of the documents set forth on Exhibit Q attached hereto (a “Port District
Transfer”) by the transferee, Port District shall automatically be released from all liability under the
Site Lease and this Agreement for periods after the date of such Port District Transfer, and the
Authority, the City, and the Developer each agrees to look solely to such transferee for the
performance of Port District’s obligations hereunder that arise after the date of such Port District
Transfer. Each Person constituting the Lessor under the Site Lease or the Port District under this
Agreement shall be liable only for those obligations arising during its period of ownership of the Site
and shall be released from further obligations after it completes a Port District Transfer.
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26.6. Time of Essence. Time is of the essence with respect to this Agreement and each of
its provisions.
26.7. Partial Invalidity. If any term, provision, covenant or condition contained in this
Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the
application of such term, provision, covenant or condition to persons or circumstances other than
those with respect to which it is invalid or unenforceable, shall not be affected thereby, and each and
every other term, provision, covenant or condition of this Agreement shall be valid and enforceable
to the fullest extent possible permitted by Law.
26.8. Entire Agreement. It is understood and acknowledged that there are no oral
agreements between the Parties affecting this Agreement and this Agreement supersedes and cancels
any and all previous negotiations, arrangements, agreements and understandings, if any, between the
Parties with respect to the subject matter hereof, except for the Prior Agreements, the
Contemporaneous Agreements and the Approved Agreements. This Agreement contains all of the
terms, covenants, conditions, warranties and agreements of the Parties relating in any manner to the
construction of the Convention Center, the Developer’s Phase 1A Infrastructure Improvements, and
as between the Port District and the Developer) the Remaining Phase 1A Infrastructure
Improvements and shall be considered to be the only agreement between the Parties and their
representatives and agents, except for the applicable Prior Agreements, the applicable
Contemporaneous Agreements and the applicable Approved Agreements; and none of the terms,
covenants, conditions or provisions of this Agreement can be modified, deleted or added to except in
writing signed by the Parties. All negotiations and oral agreements acceptable to the Parties have
been merged into and are included herein. There are no other representations or warranties between
the Parties, and all reliance with respect to representations is based totally upon the representations
and agreements contained in this Agreement. However, Developer acknowledges and agrees that
other documents may restrict Developer’s use of the Project Site and the Improvements or impose
other obligations not specifically referenced in this Agreement, including, but not limited to,
conditions of approval of a CDP or mitigation measures under CEQA.
26.9. Joint and Several. If there is more than one Person constituting Developer (i) the
obligations imposed upon such persons or entities under this Agreement shall be joint and several
and (ii) the act or signature of, or notice from or to, any one or more of them with respect to this
Agreement shall be binding upon each and all of such persons and entities with the same force and
effect as if each and all of them had so acted or signed, or given or received such notice.
26.10. Developer’s Authority. Developer hereby represents and warrants as of the Effective
Date that Developer is a duly formed and existing entity qualified to do business in the state in which
the Project Site is located and that Developer has full right and authority to execute and deliver this
Agreement and that each Person signing on behalf of Developer is authorized to do so.
26.11. Interaction with Sewer Agreement. The Parties agree that with respect to the sewer
improvements specifically described in the Sewer Agreement (“City Sewer Improvements”) only,
because such City Sewer Improvements are being paid for solely out of City funds, they will be
constructed by Developer within City rights of way, and will be accepted, owned, and maintained by
the City, the Sewer Agreement shall govern the terms for the construction and reimbursement of such
City Sewer Improvements. Notwithstanding the foregoing, Developer acknowledges and agrees that
a) Developer’s obligations under Section 3.1 (Term – as it relates to the Developer’s Phase 1A
Infrastructure Improvements Site), Section 5.1.1.1 (Construction of Project), Section 5.7
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Entitlements), Section 7.2 (Compliance with Laws (except Section 7.2.1)), Section 8.1.2 (Other),
Section 8.1.3 (Environment), Section 8.1.4 (Access to Project Site), Section 8.2 (Public Right-of-
Way), Article XIV (as to Port District and Authority only), Article XV (as to Port District and
Authority only), Article XVIII (as to the Port District and Authority only), Article XX (as to Port
District and Authority only), and Article XXI (as to Port District and Authority only), shall govern
and control as to the Port District and Authority with respect to the City Sewer Improvements and
any portion of the Project Site upon which the City Sewer Improvements shall be constructed and the
Port District and Authority shall have all of its rights to enforce such rights herein; (2) the
Completion of the City Sewer Improvements shall not be considered in the definition of Developer’s
Phase 1A Infrastructure Improvements for purposes of determining the Outside Construction
Completion Date for purposes of assessing Construction Late Charges; (3) with respect to the City
Sewer Improvements only, Developer shall comply with the applicable requirements of the Sewer
Agreement to provide payment bonds, performance bonds, and/or warranty bonds; and (4) this
provision shall not restrict, modify, or amend, any rights of the Port District pursuant to any easement
with the City for any public right of way in which any of the City Sewer Improvements shall be
constructed.
26.12. Resolution of Specified Disputes.
26.12.1. Specified Disputes. This Section (other than Section 26.12.10) shall apply
only to, and shall be the Parties’ exclusive method of dispute resolution for, the following specified
disputes (“Specified Disputes”), defined as:
26.12.1.1. (a) Disputes over amounts that Developer included in a
Developer’s Phase 1A Payment Request pursuant to Section 9.1.2.1 that Authority (i) did not
approve per Section 9.1.2.4, (ii) contested pursuant to Section 9.1.4.3 to the extent the Developer or
Authority are unable to agree or settle such dispute within the time period set forth in
Section 9.1.4.3(a) or (iii) did not pay within the time set forth in Section 9.1.3, or (b) disputes
regarding the Final Accounting or the Authority’s Phase 1A Final Review pursuant to Section 9.1.6
and 9.1.6.1.
26.12.1.2. Disputes over the amount of any reduction in the costs payable to
Developer as a result of Authority’s correction, removal or replacement of Defective Work pursuant
to Section 12.2.1 or Section 12.2.2.
26.12.1.3. (a) Disputes over amounts that Developer included in a
Convention Center Payment Request pursuant to Section 9.2.1 that Authority (a) did not approve per
Section 9.2.2.3, (b) contested pursuant to Section 9.2.4.2 to the extent the Developer or Authority are
unable to agree or settle such dispute within the time period set forth in Section 9.2.4.2(a) or (c) did
not pay within the time set forth in Section 9.2.3 or (b) disputes regarding the Final Accounting or
the Authority’s Convention Center Final Review pursuant to Section 9.2.6 and 9.2.6.1.
26.12.1.4. Disputes over any amounts that Authority has paid to Developer
that Authority alleges were not properly paid to Developer, except that this Section does not preclude
Authority or any other Public Entity from bringing an action in court under the False Claims Act, or
for fraud, or for similar actions.
26.12.1.5. Disputes pursuant to Section 26.12.4 as to whether a Demand is
subject to arbitration.
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26.12.2. Notice. Developer and Authority shall endeavor to reasonably inform the
other Party of any Specified Disputes that they respectively believe may be the subject of formal
dispute resolution proceedings.
26.12.3. Initiation of Dispute Resolution. Developer or Authority may initiate the
dispute resolution process by providing notice and making a written demand to the other Party to
initiate formal dispute resolution (“Demand”). The Demand shall include documentation supporting
the claimed right to payment, or if the documentation has already been provided, a specific reference
to the documents and their location. Upon the filing of a Demand, Developer and Authority shall
engage in good faith in executive-level negotiations to attempt to resolve the Specified Dispute.
Negotiation shall commence within (a) with respect to disputes under Sections 26.12.1.1(b) or
26.12.1.3(b), five (5) Business Days from Developer’s or Authority’s Demand, and (b) otherwise
three (3) Business Days from Developer’s or Authority’s Demand. Developer and Authority may
mutually agree to mediation of the Demand in lieu of or in addition to negotiation of a Specified
Dispute. The reasonable costs of mediation will be shared evenly between Developer and Authority.
26.12.4. Binding Arbitration. Specified Disputes that remain unresolved within six
6) Business Days after the Demand (the “Negotiation Deadline”) shall be submitted to binding
arbitration. The arbitration shall be inclusive of all Specified Disputes that have been initiated
pursuant to Section 26.12.3 at the time Developer or Authority initiates arbitration, unless the
Developer and Authority stipulate otherwise. The complaint in arbitration shall identify all Specified
Disputes that are part of the arbitration as well as the amount in controversy. To the extent that the
Developer and Authority do not agree in good faith whether a Demand is a Specified Dispute subject
to arbitration, the question of whether a Demand is subject to arbitration shall be resolved by the
arbitrator. Developer or Authority shall initiate arbitration of a Demand no later than six (6) months
after the Cutoff Date.
26.12.5. Selection of Arbitrator. The Parties have approved each of the arbitrators
the “Approved Arbitrators”) listed on Exhibit N-1 (the “Approved Arbitrator List”). After the
Negotiation Deadline, Developer or Authority may contact the Approved Arbitrator that is highest on
the Approved Arbitrator List to determine whether he/she is available to serve as the arbitrator. If
such Approved Arbitrator responds that he/she is unavailable or does not indicate that he/she is
available to serve as the arbitrator within three (3) Business Days after the date on which contacted,
then such Approved Arbitrator shall be deemed unavailable. Developer or Authority may then
contact the Approved Arbitrator that is next on the Approved Arbitrator List, and such process shall
continue on an iterative basis until an Approved Arbitrator has confirmed their availability or until all
of Approved Arbitrators on the Approved Arbitrator List are deemed unavailable. If none of the
Approved Arbitrators is available, then Developer and Authority shall, within two (2) Business Days
after Developer or Authority determines that none of the Approved Arbitrators is available, exchange
a list of five preferred arbitrators, each of whom must be experienced in construction law and
resolving construction claims, and each of whom shall be a retired judge or an attorney, located in
Southern California. The Developer and Authority shall mutually agree on an arbitrator. In the
event that an agreement cannot be reached within two (2) Business Days after receipt of such lists,
each side shall strike one of the other parties’ arbitrators until only four names remain. Any of the
remaining four who are unable to take on the Specified Dispute shall be stricken. If an agreement still
cannot be reached, the arbitrator shall be selected by lot from the remaining names.
26.12.6. Selection of Arbitration Rules. The arbitration shall proceed in accordance
with the JAMS Expedited Construction Arbitration Rules (the “JAMS Rules”). The JAMS Rules
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shall apply except to the extent inconsistent with this Section 26.12, and even though the amount of
the dispute may be greater than $100,000. Any arbitration pursuant to this Section 26.12 shall be
completed (whether by settlement or the issuance of an award by the arbitrator) within twenty (20)
Business Days after the arbitrator is selected.
26.12.7. Arbitrator’s Jurisdiction. The arbitrator’s jurisdiction shall be limited to
determining whether a Demand is subject to arbitration as well as the amount due from one Party to
other under this Agreement and ordering the payment of such amounts due from one Party to the
other Party by a date certain.
26.12.7.1. For a Specified Dispute arising from a Demand involving a
Developer’s Phase 1A Payment Request, the arbitrator shall only have jurisdiction to determine
whether any amount is owed to Developer in accordance with this Agreement and to order payment
to Developer of the amount owed.
26.12.7.2. For a Specified Dispute arising from a Demand involving
Defective Work, the arbitrator shall only have jurisdiction to determine the amount of the reduction,
if any, in costs payable to Developer and to order payment to allocate such costs.
26.12.7.3. For a Specified Dispute arising from a Demand involving a
Convention Center Payment Request, (a) the arbitrator shall only have jurisdiction to determine
whether any amount is owed to Developer in accordance with this Agreement and to order payment
to Developer of the amount owed, and (b) the arbitrator shall have no power to order the Authority or
any other Public Entity to pay any amount to Developer in excess of the sum of the Project Public
Investment Amount (not paid to Developer pursuant to this Agreement (other than default interest in
accordance with this Agreement)) and the proceeds of Advance Rent (to the extent received by any
Public Entity and not paid to Developer pursuant to this Agreement), to order any adjustment to the
Project Public Investment Amount, or to order any payment of the Project Public Investment Amount
before it is due and payable under this Agreement.
26.12.7.4. For a Specified Dispute arising from a Demand involving an
overpayment by Authority, the arbitrator shall only have jurisdiction to determine whether any
amount is owed to Authority in accordance with this Agreement and to order payment to Authority
of the amount owed.
26.12.7.5. For all Specified Disputes, the costs necessary to retain and
commence arbitration shall be shared evenly between Developer and Authority, but the arbitrator
may order the non-prevailing party to pay the reasonable attorney’s fees and costs of the prevailing
party as part of an award.
26.12.7.6. For all Specified Disputes, the arbitrator shall have no authority or
power to do any of the following: (i) award payment of any amount that is not consistent with this
Agreement or expressly authorized within the terms of this Agreement; (ii) award any consequential,
incidental or punitive damages or any amounts relating to lost profits, lost business opportunity or
similar damages; (iii) commit errors of law; (iv) decide any matter related to this Agreement that is
not specifically identified as a Specified Dispute arising from a Demand; (v) except with respect to
disputes under Section 26.12.1.5, order injunctive relief or (vi) order any Public Entity to perform
any discretionary act.
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26.12.7.7. For the resolution of Demands arising under all Specified
Disputes, the arbitrator shall issue a written determination containing the arbitrator’s findings and the
basis of the award.
26.12.8. Judgment. Judgment on any award rendered by an arbitrator may be
entered in any court having jurisdiction thereof.
26.12.9. Interpretation. This procedure for resolution of Specified Disputes shall not
limit the rights of the Public Entities to initiate a claim against Developer or any other person:
a) arising from latent and/or patent deficiencies in workmanship, equipment or materials; (b) arising
from guarantees to repair or warranty obligations; (c) for defense and indemnity pursuant to
Article XIV of this Agreement (d) under any security for Developer’s performance, including calling
a bond per Article XIII of this Agreement or enforcing the Completion Guaranty per Section 5.6; or
e) for any remedy under any other agreement between Developer and any of the Public Entities.
26.12.10. Resolution of Other Disputes. Any dispute, controversy or claim arising
out of or relating to this Agreement or any Convention Center Lease, or the breach hereof or thereof,
shall be subject to a non-binding mandatory mediation, other than (i) a Specified Dispute; (ii) any
action of a Party to seek emergency, immediate, or preliminary relief; (iii) any action of a Public
Entity in its governmental or regulatory capacity; or (iv) any action involving fraud, false claims or
similar actions. The mediator shall be a qualified mediator mutually acceptable to the Parties
involved in the dispute. The Parties have approved each of the mediators (the “Approved
Mediators”) listed on Exhibit N-2 (the “Approved Mediator List”). The Port District and
Developer may elect to use the Approved Mediator List for any non-binding mediation elected or
required under the Ground Lease. The Parties involved in the dispute shall each pay an equal share
of the cost of the mediation and each such Party shall pay its own costs and expenses, including any
attorneys’ fees, related to the mediation.
26.13. Attorneys’ Fees. Should any suit or action be commenced to enforce, protect, or
establish any right or remedy of any of the terms and conditions hereof or under the Convention
Center Subleases to which a Party hereto is a party or a third party beneficiary, including without
limitation a summary action commenced by the Parties under the laws of the state of California
relating to the unlawful detention of property, the prevailing party shall be entitled to have and
recover from the losing party reasonable attorneys’ fees and costs of suit, including, without
limitation, any and all costs incurred in enforcing, perfecting and executing such judgment.
26.14. Transaction Costs. To the extent Developer requests any approval, consent or other
action by Port District, Authority, or the City under this Agreement, or Port District, Authority, or
City, need to approve, consent, or perform another action for any of the Port District, Authority, or
City, to process an approval, consent, or other action for Developer, Developer shall pay or
reimburse Port District, Authority, or City, as applicable, upon written demand therefor, all of Port
District’s, Authority’s, or City’s, as applicable, reasonable attorneys’ fees and other third party costs
incurred by Port District, Authority, or City in connection therewith, together with Port District’s,
Authority’s, and City’s, then current processing or cost recovery fee for, Port, Authority, or City
similar transactions consistent with any schedule of such fees then utilized by Port District,
Authority, or City. Port District, Authority, or City, as applicable, shall provide Developer with a
copy of any such fee schedule following written request therefor from Developer. Such costs and
fees shall be payable to Port District, Authority, or City, as applicable, whether or not Port District,
Authority, or City, as applicable, grants such approval or consent, or undertakes the action requested
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by Developer or performed by Port District, Authority, or City, to approve, consent, or perform
another action for any of the Port District, Authority, or City, to process such approval, consent, or
action for Developer. Notwithstanding anything to the contrary in this Section, (i) Section 19.2 and
not this Section 26.14 shall apply to any Tax Claim, (ii) Developer shall have the right to seek
reimbursement of any amount paid under this Section 26.14 that qualifies as a Developer’s Phase 1A
Infrastructure Improvements Costs and the Authority shall process such request in the same manner
as any other payment request under Section 9.1, and (iii) Developer shall have no obligation to pay
Port District, Authority, or City for any cost that the Port District, Authority, or City has expressly
agreed to pay in this Agreement or Contemporaneous Agreement.
26.15. Provisions Regarding Authority Operations. Until the earlier of (a) Full Payment or
b) the earlier termination of the Sublease and this Agreement, the Authority agrees to comply with
the following:
26.15.1. The Authority will not engage in any transactions or operations other than
i) issuing the Authority Bonds, and (ii) engaging in the transactions described in this Agreement, the
Convention Center Leases and the Indenture.
26.15.2. The Authority will neither incur nor guaranty any indebtedness other than
the Authority Bonds (including additional Authority Bonds issued to refinance outstanding Authority
Bonds).
26.15.3. The Authority will have a mailing address separate from the Public Entities.
26.15.4. The Authority will maintain financial books and records separate from
those of any other Person.
26.16. Replacement Trustees. Until Full Payment or the earlier termination of this
Agreement, Authority shall not approve or effect the replacement of the Trustee under the Authority
Indenture unless the Developer first provides its written consent, which consent shall not
unreasonably withheld, conditioned or delayed, and such approval shall not be required if US Bank
National Association or The Bank of New York Mellon Trust Company, N.A., will be the
replacement Trustee. Authority will provide Developer with written notice of any proposed
replacement of the Trustee under the Authority Indenture promptly after Authority learns of such
proposed replacement.
26.17. Effect of Section 365(h)(1) Election. If Port District becomes a debtor in a
Bankruptcy Case and rejects the Site Lease under Section 365 of the Bankruptcy Code, then the
Authority shall exercise its right under Section 365(h)(1) of the Bankruptcy Code to remain in
possession of the Site under and as defined in the Site Lease. If the Authority becomes a debtor in a
Bankruptcy Case and rejects the Facility Lease under Section 365 of the Bankruptcy Code, then the
Port or the City, as then applicable, shall exercise its right under Section 365(h)(1) of the Bankruptcy
Code to remain in possession of the Site and the Improvements, in each case under and as defined in
the Facility Lease.
26.18. Financial Information Regarding Continuous Operations. To assist Developer in
making any determination described in 6.1(c)of the Sublease, the Authority, the other Public Entities
and the Financing District shall deliver to Developer, within fifteen (15) Business Days after
Developer’s reasonable request therefor, (i) a written and reasonably detailed forecast of the sources
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and amounts of Revenues (as defined in the Indenture) that will accrue during the next twelve (12)
month period, (ii) a description of all funds and accounts established pursuant to the Indenture
including the amounts deposited therein) and (iii) such other financial information as Developer
shall reasonably request regarding revenues held, paid or to be paid by any Public Entity or the
Financing District to the Authority or the Trustee pursuant to the terms of this Agreement, the
Convention Center Leases and the Indenture, as applicable. If the Public Entities or Financing
District do not provide information reasonably requested by Developer within such fifteen (15)
Business Day period, the Developer will provide written notice to the Public Entity or Financing
District, as applicable, describing the information that was not provided and the applicable Public
Entity or Financing District shall provide such information to Developer within five (5) Business
Days from the date such notice was received (or, with respect to information reasonably requested by
Developer under clause (iii) in the immediately preceding sentence, such additional time as may
reasonably be required by the Public Entities or Financing District to compile and provide such
information).
26.19. Governing Law. Venue for any legal proceeding shall be in San Diego County,
California. This Agreement shall be construed and enforced in accordance with the Laws of the State
of California.
26.20. Modification. This Agreement may not be amended, modified, terminated or
rescinded, in whole or in part, except by written instrument duly executed and acknowledged by the
Parties hereto, their successors or assigns. Neither the Facility Lease nor the Site Lease shall be
terminated or rescinded, or amended or otherwise modified in any manner that could reasonably be
expected to have an adverse effect on Developer or any Permitted Lender, without Developer’s prior
written consent and the consent of each Senior Permitted Lender. Each of the Developer, the Senior
Permitted Mortgage Lender, and the Senior Permitted Mezzanine Lender (each an “Amendment
Consent Party”) shall not withhold its consent to any amendment of the Facility Lease or the Site
Lease that (a) is necessary to refinance bonds that have been issued by the Authority and (b) could
not reasonably be expected to have an adverse effect on Developer or any Permitted Lender (such an
amendment, a “Proposed Amendment”). If the Authority desires that the Amendment Consent
Parties consent to a Proposed Amendment, then the Authority shall provide written notice to each
Amendment Consent Party that attaches the final draft of such Proposed Amendment to such notice,
requests that such Amendment Consent Party consent to such Proposed Amendment within ten (10)
Business Days after such Amendment Consent Party receives such notice and states in 14 point type
UNDER SECTION 26.20 OF THE PROJECT IMPLEMENTATION AGREEMENT DATED
MAY 26, 2022, FAILURE TO RESPOND TO THIS NOTICE WITHIN 10 BUSINESS DAYS
MAY RESULT IN DEEMED CONSENT.” If any Amendment Consent Party does not respond in
writing to such written notice within ten (10) Business Days after such Amendment Consent Party
receives such notice, either (i) consenting to the Proposed Amendment or (ii) briefly describing the
nature of the adverse effect that the Developer or Senior Permitted Lender anticipates that the
Proposed Amendment reasonably could be expected to have on the Developer or a Permitted Lender
provided that the content of such brief descriptions shall not impair any Amendment Consent
Party’s right to withhold its consent under this Section), then the Authority may provide a second
written notice to such Amendment Consent Party stating in 14 point type that “[SUCH
AMENDMENT CONSENT PARTY] HAS FAILED TO RESPOND TO A REQUEST FOR
CONSENT TO AN AMENDMENT OF THE FACILITY LEASE OR THE SITE LEASE UNDER
SECTION 26.20 OF THE PROJECT IMPLEMENTATION AGREEMENT DATED MAY 26,
2022, WITHIN TEN (10) BUSINESS DAYS, AND SUCH CONSENT WILL BE DEEMED
GIVEN UNDER SECTION 26.20 OF THE PROJECT IMPLEMENTATION AGREEMENT
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DATED MAY 26, 2022, UNLESS [SUCH AMENDMENT CONSENT PARTY] RESPONDS TO
THIS NOTICE WITHIN FIVE (5) BUSINESS DAYS” and to which second notice will be attached
a copy of the first notice, including a copy of the Proposed Amendment. If such Amendment
Consent Party fails to object to such Proposed Amendment by written notice to the Authority as
described above within five (5) Business Days after receiving such additional notice, then such
Amendment Consent Party shall be deemed to have approved the Proposed Amendment.
26.21. Counterparts; Electronic Signatures. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of which taken together
shall constitute one and the same agreement. The words “execution”, “execute”, “signed”,
signature”, and words of like import in or related to any document signed or to be signed in
connection with this Agreement and the transaction contemplated hereby shall be deemed to include
electronic signatures, contract formations on electronic platforms approved by the Parties, or the
keeping of such electronic signatures and electronic contracts in electronic form, each of which shall
be of the same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the California Uniform Electronic Transaction Act, or any other similar state laws based on the
Uniform Electronic Transactions Act.
26.22. Drafting Presumption; Review Standard. The parties acknowledge that this
Agreement has been agreed to by each of the Parties, that each of the Parties have consulted with
attorneys with respect to the terms of this Agreement and that no presumption shall be created
against the drafting Party. Any deletion of language from this Agreement prior to its execution by the
Parties shall not be construed to raise any presumption, canon of construction or implication,
including, without limitation, any implication that the parties intended thereby to state the converse
of the deleted language. Unless otherwise specified in this Agreement, any approval or consent to be
given by Port District, BPC, City, or the City Council, may be given or withheld in Port District’s,
BPC’s, City’s, or the City Council’s, sole and absolute discretion.
26.23. Administrative Claims. No suit or arbitration (other than arbitration pursuant to
Section 26.12) shall be brought arising out of this Agreement against the Authority or the Port
District unless a claim has first been presented in writing and filed with the Authority or the Port
District, as applicable, and acted upon by the Authority or the Port District, as applicable, in
accordance with the procedures set forth in Section 910, et seq., of the California Government Code,
as same may from time to time be amended (the provisions of which are incorporated by this
reference as if fully set forth herein), and such policies and procedures used by the Authority or the
Port District, as applicable, in the implementation of same. No suit or arbitration (other than
arbitration pursuant to Section 26.12) shall be brought arising out of this Agreement against the City
unless a claim has first been presented in writing and filed with the City and acted upon by the City
in accordance with the procedures set forth in Chapter 1.34 of the CVMC, as same may from time to
time be amended (the provisions of which are incorporated by this reference as if fully set forth
herein), and such policies and procedures used by the City in the implementation of same. For the
avoidance of doubt, this Section 26.22 shall not apply to prevent or delay the initiation of mediation
or arbitration as permitted by Section 26.12.
26.24. Non-liability of Public Entity Officials and Employees. No officer, director, member,
official, employee, consultant, or member of the governing board of any Public Entity shall be
personally liable to Developer in the event of any default or breach by such Public Entity, or for any
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amount which may become due to Developer, or on any obligations under the terms of this
Agreement.
26.25. Authority Executive Director; Authority Approvals and Actions. Authority shall
maintain authority of this Agreement and the authority to implement this Agreement on behalf of
Authority through Authority’s Executive Director (or his/her duly authorized representative). The
Executive Director and his/her duly authorized representative(s) shall have the authority to make
approvals, issue interpretations, waive provisions, request issuance of warrants and make payments
authorized hereunder, make and execute further agreements and/or enter into amendments of this
Agreement on behalf of Authority so long as such actions do not materially or substantially change
or modify the uses or development permitted on the Project Site, or materially or substantially add to
the costs, responsibilities, or liabilities incurred or to be incurred by Authority as specified herein,
and such interpretations, waivers and/or amendments may include extensions of time to perform. All
material and/or substantive interpretations, waivers, or amendments shall require the consideration,
action and written consent of the Authority Board. Further, the Executive Director shall maintain the
right to submit to the Authority Board for consideration and action any non-material or non-
substantive interpretation, waiver or amendment, if in his/her reasonable judgment he/she desires to
do so.
26.26. Further Assurances. From time to time upon the request of a Party, the other Parties
shall, at the requesting Party’s expense, promptly execute, acknowledge and deliver such further
documentation and do such other acts and things as the requesting Party may reasonably request in
order to effect fully the purposes of this Agreement in such a manner that is consistent with and does
not contradict, modify, or amend this Agreement.
CONTRACTOR’S LICENSE NOTICE. CONTRACTORS ARE REQUIRED BY LAW TO
BE LICENSED AND REGULATED BY THE CONTRACTORS STATE LICENSE BOARD,
WHICH HAS JURISDICTION TO INVESTIGATE COMPLAINTS AGAINST
CONTRACTORS IF A COMPLAINT REGARDING A PATENT ACT OR OMISSION IS
FILED WITHIN 4 YEARS OF THE DATE OF THE ALLEGED VIOLATION. A
COMPLAINT REGARDING A LATENT ACT OR OMISSION PERTAINING TO
STRUCTURAL DEFECTS MUST BE FILED WITHIN 10 YEARS OF THE DATE OF THE
ALLEGED VIOLATION. ANY QUESTIONS CONCERNING A CONTRACTOR MAY BE
REFERRED TO THE REGISTRAR, CONTRACTORS STATE LICENSE BOARD,
P.O. BOX 26000, SACRAMENTO, CA 95826.
End of page. Signature pages follow this page.]
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Definitions Addendum
This Definitions Addendum constitutes a part of that certain Project Implementation
Agreement (the “Agreement”) entered into as of the Date of Agreement by and among the City, acting
on its behalf and for and on behalf the Financing District, the Port District, the Authority, and
Developer and by reference to the same in the Agreement, the following definitions are incorporated
into and constitute a part of the Agreement.
DEFINITIONS ADDENDUM
California Code of Regulations in effect as of May 4, 2010.
SUBACCOUNT:
Authority Indenture.
ACCOUNT: pursuant to the Authority Indenture.
SUBACCOUNT:
Authority Indenture.
ACCOUNT: pursuant to the Authority Indenture.
STANDARD:
Settlement Agreement) area achieve, in the aggregate, a fifty percent
50%) reduction in annual energy compared to that allowed under 2010
Title 24.
ACCEPTED: or any component thereof, acceptance of the Developer’s Phase 1A
Infrastructure Improvements or such component by the City and the
Port District, as applicable, which shall occur pursuant to Section 10.1
of the Agreement.
With respect to the Convention Center, acceptance of the Convention
Center by the Authority, which shall occur pursuant to Section 10.2 of
the Agreement and shall be evidenced by a certificate of the Authority
confirming the Authority’s Acceptance of the Convention Center.
With respect to Sweetwater Park, acceptance of Sweetwater Park by the
Port District shall occur pursuant to Section 10.3 of the Agreement.
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regulations promulgated thereunder, as the same may be amended from
time to time.
SAVINGS MEASURES: 50% Energy Standard. Such Additional Energy Savings Measures may
include, without limitation, Developer’s participation in renewable or
time of use”
identified in Section 15.2 of the Settlement Agreement.
INSURANCE: provides adequate protection for the Site and Improvements (other than
Existing Improvement
operation or occupancy of the Site and Improvements (other than the
Existing Improvements) by Developer Parties and Hotel Operator.
AGENT: administrative agent for the Purchasers under and as defined in the
Bond Purchase Agreement.
AGENT EMAIL
ADDRESS:
james.g.millard@jpmchase.com shawn.laljit@jpmchase.com
substituted by Administrative Agent from time to time by written notice
to Developer and Authority.
to the extent the right to such payment has been assigned by the City to
the Authority under the Facility Lease.
with, such Person.
City, the Financing District, the Port District and the Developer. The
term “Agreement”
properly approved and executed pursuant to the terms of the
Agreement.
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Improvements following the Completion of the Convention Center,
including the addition, installation or removal of any fixtures (other
replacement or refreshing of any furniture, trade fixtures or equipment.
ASSISTANCE COSTS: provide to
assistance.
AGREEMENTS:
AND SPECIFICATIONS: means the drawings and specifications for the Developer’s Phase 1A
Infrastructure Improvements attached as Exhibit X-
otherwise modified from time to time in accordance with Section 2.1.6
of the Agreement; and (b) with respect to the Remaining Phase 1A
Infrastructure Improvements means the drawings and specifications for
the Remaining Phase 1A Infrastructure Improvements
Exhibit X-2, as revised by the Port District from time to time before
Developer exercises a Sweetwater Park Option.
to be unreasonably withheld, conditioned or delayed).
CERTIFICATE: attached as Exhibit 1 to the Developer Phase 1A Payment Request or
the Convention Center Payment Request, as applicable.
transfer of all or any portion of Developer’s interest in the Sublease
created thereby, the Site or the Improvements, whether by operation of
law or otherwise, but, for the avoidance of doubt, excluding any Sub-
sublease (as defined in the Sublease).
PARTICIPATION FEE:
PROCEEDS:
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incurred or to be incurred by Port District in providing such assistance.
Authority.
adopted by the Authority Board on July 25, 2019.
counsel to the Authority.
ADDRESSES: addresses as shall be provided or substituted by Authority from time to
time by written notice to Developer.
payments@cvbayfront.org – to be used for payment requests
construction@cvbayfront.org – to be used for change orders, requests
for information, and other communications relating to issues arising in
the field
notices@cvbayfront.org – to be used for legal notices required by the
Agreements
DEFAULT:
REVENUES ACCOUNT Revenue Fund and maintained by the Trustee pursuant to the Authority
Indenture.
INDENTURE: between the Authority and Wilmington Trust, National Association, as
trustee.
Board
and assigns of the Authority, City employees an
District employees and agents, in each case, when acting only in the
capacity of an Authority Party.
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PROCUREMENT
POLICY:
Policy for Developer-Performed Public Works”
Authority Board by the adoption of Authority Resolution 2020-002.
RESOLUTION 2020-002: 2020-007.
FUND:
BONDS:
2022A (Federally Taxable) issued to finance a portion of the Project
Costs.
EXEMPT BONDS: Revenue Bonds (Phase 1A Infrastructure Improvements) Series 2022B
Tax-Exempt) issued to finance a portion of the Developer’s Phase 1A
Infra
Phase 1A Infrastructure Improvements.
CONVENTION CENTER
FINAL REVIEW:
PHASE 1A FINAL
REVIEW:
amended, and any successor statute.
or any other Person liable for Developer’
including without limitation any member or manager of Developer) of
any of the following: (a) appointment of a receiver or custodian for any
property of such Person, or the institution of a foreclosure or attachment
action upon any property of such Person; (b) filing by such Person of a
c) an involuntary petition under the provisions of the Bankruptcy Code
shall be filed and (i) Developer shall have consented to such involuntary
petition or failed to contest in a timely and appropriate manner or (ii)
such involuntary petition continues undismissed for a period of 60 days
or an order for relief shall have been entered; or (d) such Person making
composition of creditors.
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INFRASTRUCTURE
IMPROVEMENTS
ACCOUNT:
Construction Fund maintained by the Trustee pursuant to the Authority
Indenture.
PROGRAM: authorized by Chula Vista Municipal Code Chapter 3.54.
AGREEMENT: as of the Date of Agreement,
District, the City and the Administrative Agent.
County, California are open for ordinary banking business.
BUILDING CODE: Municipal Code), as amended, and any successor statute.
STANDARD SPECIAL
PROVISIONS
Vista Standard Special Provisions.
Unless specifically provided otherwise, whenever the Agreement
requires an action or approval by City, that action or approval shall be
performed by the City representative designated by the Agreement.
set forth in Schedule 1 of the Authority Bylaws.
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assigns of the City, in each case, when acting only in the capacity of a
City Party.
DATE:
COMPLETION:
temporary certificate of occupancy for the Convention Center from the
City,
b) with respect to the Developer’s Phase
Improvements, means that the Developer’s Phase
Improvements
Contract Documents (excluding, for the avoidance of doubt, punch list
items) so that the Developer’s Phase 1A Infrastructure Improvements
can be utilized for their intended use,
c) with respect to the Remaining Phase
Improvements, means that the Remaining Phase
Improvements
Contract Documents (excluding, for the avoidance of doubt, punch list
items) so that the Remaining Phase 1A Infrastructure Improvements
can be utilized for their intended use; and
d) with respect to the Resort Hotel, as defined in the Ground Lease.
GUARANTOR(S):
GUARANTY:
CONDEMNED:
SITE:
CHARGES:
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PERIOD: Project is Complete.
REQUIREMENTS:
Improvements (except the Existing Improvements) and Alterations as
described in Exhibit “E” attached to the Agreement.
SERVICES:
AGREEMENTS: Date by the Parties with respect to the Development, including, but not
limited to the Agreement, the Convention Center Leases, the Ground
Lease, the Completion Guaranty
Easements
Protection Agreements, the Hotel Operator Non-Disturbance
Agreements, the Payment Direction Agreement, and the Fee Deferral
Agreement.
DOCUMENTS:
exhibits and addenda, subcontrac
addenda, and any of the following: notice inviting bids, instructions to
bidders, bid (including documentation accompanying bid and any post-
bid documentation submitted prior to notice of award), the bonds, the
general co
plans, standard plans, standard specifications and reference
specifications that are incorporated into such prime contract(s
subcontract(s)
modifications issued after the execution of the subcontract(s), in each
case, in connection with the Project or the Remaining Phase 1A
Infrastructure Improvements, as applicable.
CONTROLLED AND
CONTROLLING:
ownership of more than fifty percent (50%) of the stock, membership
interests
beneficial interests in such Person, or (ii)
Person, whether through voting interests or by way of agreement.
BUDGET: contingency reserve, broken down by line item, as amended from time
to time.
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CONTESTED CHARGES:
CONTRACT SUM: Convention Center Development Fee, plus (iii)
Convention Center Overhead Amount.
COSTS: respect to the development, design, construction, maintenance and
permitting of the Convention Center; provided, that Convention Center
Costs shall not include Non-Project Costs.
FINAL AMOUNT:
LEASES:
PAYMENT REQUEST: Exhibit K-2.
PLANS:
accordance with Section 5.1 of the Agreement.
DEVELOPER’S
PHASE 1A
SUBACCOUNT:
within the 2022B Construction Account and maintained by the Trustee
pursuant to the Authority Indenture.
BAYFRONT
IMPROVEMENTS
ACCOUNT:
within the Construction Fund and maintained by the Trustee pursuant
to the Authority Indenture.
AGREEMENT:
County Funding Agreement.
RELEASE DATE: with respect to Developer’s Phase
Costs have been finally resolved; and (iii) the date on which all amounts
that are owing to Developer in respect of the Developer’s Phase 1A
Infrastructure Improvements Costs have been paid to Developer.
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PARK FUNDS:
Improvements, two (2) years from the date of Completion, and with
respect to the Convention Center, two (2) years
Completion.
Vista Bayfront Development Policies (District Clerk No. 59407);
iii) Chula Vista Bayfront Master Plan Natural Resources Management
Plan (District Clerk No. 65065), approved by the BPC on May 10,
2016, by Resolution No. 2016-79, and the City Council on June 14,
2016, by Resolution No. 2016-119; (iv) Chula Vista Bayfront Master
Plan Public Access Program (District Clerk No. 59408); (v) Chula
Vista Bayfront Design Guidelines (District Clerk No. 67959);
vi) Integrated Planning Vision (District Clerk No. 63989); (vii) Chula
Vista Bayfront Master Plan & Port Master Plan Amendment (District
Clerk Nos. 59406); (viii) Mitigation Monitoring and Reporting
No. 56555) and (ix)
Center and the Parking Improvements.
INFRASTRUCTURE
IMPROVEMENTS COSTS:
in the CVBMP, which may include but is not limited Developer’s Phase
Infrastructure Improvements.
Office of the District Clerk as Document No. 74083.
RECIPROCAL
EASEMENTS:
Commencement Date, by and among the Port District, the Authority,
the City and the Developer.
rate cited in the Federal Reserv
District and Developer shall reasonably agree upon if such rate ceases
to be published), plus four (4) percentage points, and (ii) the highest
rate permitted by applicable Law.
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the Contract Documents.
CONSTRUCTION
STANDARDS:
City for
Drawings and Specifications are approved by the City for purposes of
the bids and which is available in the City’s Department of Engineering
and Capital Projects, acting on behalf of the Authority,
City’s website.
INVESTMENT:
DEVELOPER MEMBERS:
concessionaires, Affiliates and successors and assigns of Developer,
and Subtenants, and the agents, employees, representatives,
each of such Subtenants, in each case, when acting only in the capacity
of a Developer Party.
1A CONTESTED
CHARGES:
PHASE 1A CONTRACT
SUM:
Costs, plus (ii) Developer’s Phase 1A Project Administration Fee, plus
iii) the Stipulated Developer’s Phase 1A Infrastructure Improvements
under the Sewer Agreement or credited to Developer under the BFDIF
Program are excluded from the Developer’s Phase 1A Contract Sum.
PHASE 1A FINAL
AMOUNT
1A INFRASTRUCTURE
IMPROVEMENTS:
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1A INFRASTRUCTURE
IMPROVEMENTS
BUDGET:
Improvements Costs, including a contingency reserve, broken down by
line item, as amended or otherwise modified from time to time.
1A INFRASTRUCTURE
IMPROVEMENTS COSTS:
with respect to the development, design, construction, maintenance and
permitting of Developer’s Phase 1A Infrastructure Improvements and
b) the Early Work Costs; provided, that Developer’s Phase 1A
Infrastructure Improvements Costs shall include neither Non-Project
Costs nor Excluded Costs.
1A INFRASTRUCTURE
IMPROVEMENTS SITE:
for purposes of pre-construction services and construction.
1A PAYMENT REQUEST: Exhibit K-1.
PHASE 1A PROJECT
ADMINISTRATION FEE:
the Resort Hotel, the Convention Center and Developer’s Phase 1A
Infrastructure Improvements.
ENTITLEMENT:
PROJECT:
PAYMENT / DSP:
AGREEMENT:
Agreement).
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and Port Master Plan Amendment Final
Report,” (UPD# #83356-EIR-
56562), including, but not limited to, the “Mitigation Monitoring and
Reporting Program”
Environmental Impact Report, Resolution No. 2010-79, adopted by the
BPC on May 18, 2010.
CLEANUP: with all Environmental Laws and in a manner and to the satisfaction of
applicable regulatory authority.
LAWS: Hazardous Materials or otherwise relate to public health and safety or
the protection of the environment.
ENFORCEMENT
ACTION:
CONVENTION CENTER
COSTS:
construction of the Convention Center, as shown in Section 4.2.1.
architectural work, and engineering work for the Developer’s Phase 1A
reimbursed by the City pursuant to the Reimbursement Agreement and
b) costs incurred by the Developer in connection with the construction
of specified sewer improvements included in the Developer’s Phase 1A
reimbursed, or is eligible to be reimbursed, by the City pursuant to the
Sewer Agreement.
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LIEN WAIVERS: are or would be from any contractor, mechanic, subcontractor,
materialman or other Person if: (a) if the expected aggregate amount
to be paid to such Person in connection with the Project is less than
200,000 individually; (b)
security that is reasonably satisfactory to the Authority with respect to
c) because of the nature of work, services, materials or supplies to be
provided by such Person in connection with the Project, such Person is
not, under California law, entitled to record a mechanics lien or deliver
a stop payment notice in connection with the Project.
Executive Director, or his or her designees, may delegate the authority
granted in Authority Resolution 2020-002 to two or more members of
the staff of the Authority, provided that such delegation is made to a
contingent comprised of an equal number of City and Port District staff
Director or his or her designees, shall provide notice of such delegation
to the Parties hereto pursuant to Section 26.1 hereto.
IMPROVEMENTS: located upon the land (and water, if applicable) that are in existence and
located on, in, over or under the Site as of the Commencement Date,
whether constructed by Port District
party.
COVERAGE:
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INDIVIDUAL: the Expedited Review Individual
indivi
approvals and denials under this Agreement
including any Deputy City Manager, and (b) when the Public Entity
pr
Review Authority shall be the Port District Executive Director, or an
individual expressly authorized by the Port District Executive Director
to provide approvals and denials under this Agreement, who shall be a
senior person with knowledge and authority with respect to the Project,
including the Vice President of Business Operations.
The Expedited Review Individual for all matters relating to stormwater
regulation compliance shall be a representative of the Port District. The
Expedited Review Individual
Improvements (except stormwater regulations)
construction of the Convention Center shall be a representative of the
City.
PROCESS: described in Section 2.1.6.1 of the Agreement.
CONSTRUCTION
PERIOD DEADLINE:
amended from time to time.
ADVANCE RENT
NOTICE:
AGREEMENT: Capacity Fees [Bayfront Resort and Convention Center] dated as of the
Date of Agreement, by and between the City and the Developer.
Improvements,
with Section 9.1.6, and (b) with respect to the Convention Center the
final accounting of costs prepared in accordance with Section 9.2.6.
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TRANSACTION:
COMPLETION NOTICE:
PARK END DATE:
PARK OPTION:
EVENT:
NOTICE:
PARTY:
RESPONSE:
PURCHASER:
satisfied: (a)
confirmed in writing to Developer that the Completion Guaranty has
terminated and (b) Developer shall have confirmed
Authority that Developer has received payment of (i) the Project Public
Investment Amount, (ii) the Developer’s Phase 1A Contract Sum, and
iii) and all interest due to Developer pursuant to Sections 9.2.3 and
9.2.4.2(b) of the Agreement
occurrence of “Full Payment” does not require completion of the Final
Accounting with respect to the Convention Center or the Developer’s
Phase 1A Infrastructure Improvements.
General Contractor for the Developer’s Phase
Improvements and the construction contract between the Developer and
the General Contractor for the Convention Center.
CONTRACTOR: Developer to perform the work or provide supplies for the Developer’s
Phase 1A Infrastructure Improvements and/or the Convention Center.
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AUTHORITY: quasi-
claiming jurisdiction over the Site (or any activity the Sublease allows),
including without limitation, the Port and the City, United States federal
government, the State and County governments and their subdivisions
governmental authorities, and subdivisions thereof.
Construction.
PROPERTY:
MAXIMUM PRICE:
MATERIAL:
and petroleum products, which is a “Hazardous Material” or
Hazardous Substance”
including, but not limited to, hazardous substances as defined by Cal.
Health & Safety Code §
contamination or pollution as defined by Cal. Water Code § 13050),
subst
waste, that is regulated by, or may form the basis of liability under, any
Environmental Laws.
MATERIALS ACTIVITY:
hazardous substance as a component by any Developer Party.
holidays. If the holiday should fall on a Sunday, then the Sunday and
the following Monday are both legal holidays):
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New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
Caesar Chavez Day March 31
Independence Day July 4
Labor Day First Monday in September
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Thanksgiving Day Friday Friday after Thanksgiving
Christmas Day December 25
AGREEMENT: the Parking Improvements between Developer and the Hotel Operator.
Ground Lease.
DISTURBANCE
AGREEMENTS: Delaware corporation, dated as of the Date of Agreement
certain Convention Center Agreement, by and among the Developer,
Inc., a Delaware corporation, dated as of the Date of Agreement.
utilities and other underground improvements) now or hereafter located
on, in, over or under the Site.
FEE PAYMENT:
MAJEURE NOTICE:
IMPROVEMENTS: developed by Developer and described by the Convention Center Plans
referred to in Exhibit F to the Agreement.
CONDEMNATION
PROCEEDS FUND:
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Phase 1A Infrastructure Improvements, the Convention Center, or any
activity under the Agreement, (ii)
iii)
Authority: present and future state of California, federal and local laws,
executive orders, including, without limitation, the ADA, and any law
respect thereto, including without lim
relating to Hazardous Materials, environmental matters (including, but
Compensation and Liability Act (“CERCLA”
Conservation and Recovery Act (“RCRA”), the Cl
Clean Water Act, Oil Pollution Act, the Toxic Substances Control Act
Coastal Act, CEQA, the Public Trust Doctrine, public health and safety
matters and landmarks protection, as any of the same now exist or may
hereafter be adopted or amended. Said Laws shall include, but are not
limited to, the Laws enacted by the San Diego Unified Port District Act,
such as Article
PMP; the policies of the BPC; the Chula Vista Municipal Code and any
applicable ordinances of the City, including the building code thereof,
and any permits and approvals by any Governmental Authority and the
Port District, including, without limitation, any Calif
Park or the use or development thereof.
Lease.
terms of the Loan Agreement.
entered into by the Financing District and the Authority, as amended
from time to time.
Affiliates.
EXACERBATION: remediation action required.
CONVENTION CENTER
AMOUNT:
Advance Rent paid or deemed to be paid, plus
Developer pursuant to Sections 9.2.3 and 9.2.4.2(b) of the Agreement.
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PERIOD:
PROTECTION
AGREEMENTS:
Estoppel Certificate (Ground Lease), by and among the Developer, the
corporation, and Marriott International, Inc., a Delaware corporation,
dated as of the Date of Agreement, that certain Mezzanine Protection
Delaware corporation, and Marriott Inter
corporation, dated as of the Date of Agreement
District, the City, the Authority,
Marriott International, Inc., a Delaware corporation, dated as of the
Date of Agreement.
EFFICIENCY DESIGN
STANDARD: standards: (i) fifteen percent (15%) less than the amount of energy that
each building would otherwise be permitted t
Title 24; or (ii) the minimum energy efficiency performance standard
submitted for each building.
of M.A. Mortenson Company and McCarthy Building Companies, Inc.
PROTECTION
AGREEMENT:
Certificate (Ground Lease), by and among the Developer, Port District
and Wells Fargo Bank, National Association, as administrative agent,
dated as of the Date of Agreement, that certain Mortgagee Protection
administrative agent, dated as of the Date of Agreement
Project Implementation Agreement), by and among the Developer, the
Port District, the City, the Authority, the Financing District, and Wells
Fargo Bank, National Association, as administrative agent, dated as of
the Date of Agreement.
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the Agreement (except for a breach of the Port District’s obligations
that are set forth in Section 2.3, which is governed by Section 21.3), a
breach by City under the Sublease, a breach by the City or the Authority
under the Site Lease, or a brea
Lease.
DEADLINE:
District, the Port District, and the Administrative Agent, dated as of the
Date of Agreement, relating to the Agreement.
payment as part of the Project Costs under this Agreement: (i) salaries
and other compensation of the Developer’s personnel; (ii) bonuses,
payments, paid to General Contractor or any Subcontractor or vendor,
unless the Authority has provided prior approval; (iii)
general expenses; (iv) Developer’s cost of capital, including interest on
the Developer’s capital employed for the Project (provided, that for the
avoidance of doubt, this clause (iv) shall not restrict payment of interest
to the Developer at the Specified Default Rate as and when required by
the Agreement); (v)
misconduct by, the Developer, its General Cont
Subcontractors,
suppliers, equipment providers, employees, or agents and (vi) any costs
incurred by Developer, the General Contractor, Subcontractors or their
respective agents to remedy Defective Work, unless the Contract
Documents require the Developer to reimburse for such costs (except
to the extent such costs have been recovered from an alternate source
e.g. insurance or bond)).
COMPLETION:
practices of the City as adopted by the Authority.
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CONSTRUCTION
COMPLETION DATE:
Commencement Date, as such date may be extended by one day for
each day that (x) a Force Majeure Event delays (i) Completion of the
Project pursuant to the terms of the Agreement or (ii)
Completion of the Remaining Phase 1A Infrastructure Improvements
pursuant to the terms of the Agreement (if Developer exercises a
Sweetwater Park Option) or (y) a Municipal Breach delays Completion
of the Project pursuant to the terms of the Agreement, (b) the Sufficient
Completion of the Remaining Phase 1A Infrastructure Improvements
pursuant to the terms of the Agreement (if Developer does not exercise
a Sweetwater Park Option) only if Developer has already Completed
t
and Developer’s Phase 1A Infrastructure Improvements, or (c) the
Completion Date (as defined in the Ground Lease) as such date may be
extended by one day for each day that a Force Majeure Event or
Municipal Breach (as defined in the Ground Lease) delays Completion
as defined in the Ground Lease) of the Resort Hotel and/or the Parking
Improvements.
LEASES:
CONSTRUCTION
COMMENCEMENT
DATE:
CONSTRUCTION
COMPLETION DATE:
Commencement Date, as such date may be extended by one day for
each day that (x) a Force Majeure Event delays (i) Completion of the
Project pursuant to the terms of the Agreement or (ii)
Completion of the Remaining Phase 1A Infrastructure Improvements
pursuant to the terms of the Agreement (if Developer exercises a
Sweetwater Park Option) or (y) a Municipal Breach delays Completion
of the Project pursuant to the terms of the Agreement, (b) the Sufficient
Completion of the Remaining Phase 1A Infrastructure Improvements
pursuant to the terms of the Agreement (if Developer does not exercise
a Sweetwater Park Option) only if Developer has already Completed
and Developer’s Phase 1A Infrastructure Improvements, (c)
Section 9.3 of the Sublease, the New Outside Completion Date (as such
date is defined in the Ground Lease), if any,
extended by one day for each day that a Force Majeure Event or
Municipal Breach (each as defined in the Sublease) delays Completion
as defined in the Sublease) of the Project, (d)
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each as defined in the Ground Lease) delays Completion (as defined
Improvements, or (e) if a Foreclosure Purchaser acquires the leasehold
interest under Section 10.3.2 of the Ground Lease, the New Outside
Completion Date (as defined in the Ground Lease), if any, as such date
may be extended by one day for each day that a Force Majeure Event
or Municipal Breach (each
Completion (as defined in the Ground Lease) of the Resort Hotel and/or
the Parking Improvements.
IMPROVEMENTS:
on which Developer submits a Developer’s Phase 1A Payment Request
or a Construction Costs Payment Request to the Authority; provided,
that if the Executive Director
accordance with Section
applicable, within ten (10) Business Days after Developer submits such
Payment Request, then the Payment Date shall be the later of (a) fifteen
15) Business Days following the date the applicable Payment Request
was delivered to the Authority or (b) ten (10) Business Days following
the date the Developer submitted such additional documentation.
AGREEMENT: by and among the Developer, the City, and the Authority.
ENCUMBRANCE:
ENCUMBRANCE:
MEZZANINE LENDER: Section
agreement or similar instrument or agreement that creates any security
interest in the Mezzanine Interests securing Developer’s payment and
b) from and after the date that is the later of (i) the date when the Resort
Hotel is Complete and (ii) the date when the Parking Improvements are
Complete, any Person that holds an interest in a loan that is secured by
any security interest in the Mezzanine Interests in circumstances where
a permitted syndication has occurred and such security interest is held
by, and the administration of such loan is done by, an agent that is
approved by Port District.
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LENDER:
corporation, limited liability company, government agency or any other
form of business entity.
INFRASTRUCTURE
IMPROVEMENTS:
Remaining Phase 1A Infrastructure Improvements.
INFRASTRUCTURE
IMPROVEMENTS
SUBACCOUNT:
within the 2022B Construction Account and maintained by the Trustee
pursuant to the Authority Indenture.
DATE:
DATE:
California Harbors and Navigation Code APPENDIX I, Section 1
et
otherwise, whenever the Agreement requires an action or approval by
the Port District, that action or approval shall be performed by the Port
District representative designated by the Agreement.
GENERAL COUNSEL: authorized deputy set forth in Schedule 1 of the Authority Bylaws.
PARTIES: employees, partners, affiliates, agents, contractors, architects,
successors and assigns of Port District, in each case, when acting only
in the capacity of a Port District Party.
TRANSFER:
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MATERIALS:
HAZARDOUS
MATERIAL:
Effective Date, whether known or unknown, or any Hazardous Material
located outside the Project Site (including any premises owned by the
City and/or the Port District) prior to the Effective Date that migrates
to the Project Site thereafter.
AGREEMENT: dated as of the Date of Agreement, as amended from time to time.
PROHIBITED PERSONS:
Convention Center.
Infrastructure Improvements Costs.
INVESTMENT AMOUNT:
construction.
CONTEST:
EXPENSES: Project Improvements (including, without limitation, real estate taxes,
possessory interest taxes, general and special taxes and assessments,
leasehold taxes or taxes based upon Developer’
excluding all taxes imposed upon net income or gain).
ENTITIES: Authority, the City and the Port District.
CONTRIBUTION
SUBACCOUNT:
2022A Construction Account and maintained by the Trustee pursuant
to the Authority Indenture.
DEVELOPMENT PARTY: (including any inspector retained by a Public Entity).
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PARTIES: Parties
ESTIMATED
DEVELOPER’S PHASE
1A INFRASTRUCTURE
IMPROVEMENTS COST:
Phase 1A Infrastructure Improvements, as shown in Exhibit C-3
attached to the Agreement.
OBLIGATION / PDSO:
AGREEMENT:
PROCEDURE: Lease.
in value and loss
reasonable attorneys’, consultants’ and experts’
penalties and court costs related to the subject matter of the Related
Costs and amounts paid in settlement of any claims or actions related
to the subject matter of the Related Costs. For the avoidance of doubt,
Related Costs shall not include any Tax Expenses or items expressly
excluded from the definition of Tax Expenses.
AGREEMENT: among the City, Redevelopment Agency of the City of Chula Vista,
Port District, and Rohr, as amended by the Amendment to Relocation
Agreement, dated as of November 1, 1999, the Second Amendment to
Relocation Agreement, dated as of February
Amendment to Relocation Agreement, dated as of September 10, 2013.
INFRASTRUCTURE
IMPROVEMENTS:
INFRASTRUCTURE
IMPROVEMENTS COSTS:
respect to the development, design, construction and permitting of the
Remaining Phase 1A Infrastructure Improvements.
INFRASTRUCTURE
IMPROVEMENTS SITE:
for purposes of pre-construction services and construction.
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COSTS: restoration, reconstruction or redevelopment of the Convention Center
or any portion thereof in connection with a casualty or condemnation
event pursuant to Article V of the Sublease.
Exhibit “B-1” attached hereto, with an Acceptable Brand.
to the Authority Indenture.
COMPLETION NOTICE:
PARK END DATE: Commencement Date
Outside Construction Completion Date.
PARK OPTION:
AGREEMENT: 2010, among the Bayfront Coalition Member Organizations identified
therein, Port, the City of Chula Vista and the Redevelopment Agency
of the City of Chula Vista (District Clerk No. 56523).
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RATE:
Center and Developer’s Phase 1A Infrastructure Improvements, an
annual rate equal to ten percent (10%) per annum and (b) commencing
upon Completion (defined in the Ground Lease) of the Resort Hotel and
Parking Improvements and Completion of the Convention Center and
Developer’s Phase
equal to fifteen percent (15%) per annum.
PROCESSING
AGREEMENT:
Agreement between City and Developer dated effective June 3, 2020.
SPECIFICATIONS: the Approved Drawings and Specifications, in each case, as in effect on
the Plan Submission Date
approved by the Developer, the City, the District and the Authority.
CONVENTION CENTER
OVERHEAD AMOUNT:
accrue on the last day of each month beginning with the month in which
month until $3,500,000 has accrued.
STIPULATED
DEVELOPER’S PHASE
1A INFRASTRUCTURE
IMPROVEMENTS
OVERHEAD AMOUNT:
Improvements Overhead Amount will accrue on the last day of each
month beginning with the month in which the Commencement Date
accrued
perform the work or provide supplies for the Developer’s Phase 1A
applicable.
RENT NOTICE:
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franchisee, licensee, or concessionaire under any Sub-Sublease;
provided, however, that “Subtenant” shall exclude the Hotel Operator.
COMPLETION /
SUFFICIENTLY
COMPLETE:
COMPLETION DATE: 1A Infrastructure Improvemen
Phase 1A Infrastructure Improvements Costs to Sufficiently Complete
the Remaining Phase 1A Infrastructure Improvements (or such earlier
determines tha
District to Sufficiently Complete Sweetwater Park).
Agreement.
CONTRACTS: Park Construction Contracts.
CONSTRUCTION
CONTRACT:
Port District is a party, as amended, restated, supplemented, modified
or replaced from time to time.
DESIGN CONTRACT:
modified or replaced from time to time; provided, however,
Sweetwater Park Design Contract” shall apply to each such design
services agreement if more than one but shall exclude the Sweetwater
Park Construction Contract.
MATERIALS:
Remaining Phase 1A Infrastructure Improvements that are reasonably
necessary for the Developer to Sufficiently Complete Sweetwater Park.
OPTION: Option.
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municipal taxes, fees,
possessory interest taxes, use taxes, general and special assessments,
leasehold taxe
including gross receipts or sales taxes applicable to Developer’s receipt
of rent, personal property taxes imposed upon the fixtures, machinery,
equipment, apparatus, systems and equipment, appurtenances, furniture
and other personal property used by Developer in connection with the
connection with the Project Site and the Improvements. Tax Expenses
also shall include, without limitation:
i) Any tax on a Public Entity’s receipt of Rent (as defined herein or
under the Ground Lease), right to Rent (as defined herein or under the
Ground Lease) or other revenue from the Project
Improvements other than any tax on the income of a Public Entity;
ii)
charge previously included within the definition of real property tax,
assessments, taxes, fees, levies and charges that may be imposed by a
sidewalk and roa
owners or occupants. It is the intention of the Parties that all such new
similar assessments, taxes, fees, levies and charges be included within
the definition of Tax Expenses; and
iii)
assessed based upon the area of the Project Site or the Improvements or
the Rent p
Developer of the Project Site, the Improvements, or any portion thereof.
Agencies, the direct or indirect owners of Developer, Hotel Operator or
the Affiliates of Hotel Operator, whether bas
income generated by Developer, the Public Agencies, Hotel Operator
or otherwise.
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MATERIAL: Improvements during the Term by any Person or (ii) brought onto the
Site, Improvements or any other property by Developer, Developer
Party, or Hotel Operator or generated by any of the same.
CENTER DEVELOPMENT
FEE:
as and when set forth on Exhibit J.
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Exhibit A-1
Legal Description of the Site
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CHULA VISTA,
IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS
FOLLOWS:
ALL THAT CERTAIN PORTION OF LAND CONVEYED TO THE SAN DIEGO UNIFIED
PORT DISTRICT BY THAT CERTAIN ACT OF LEGISLATURE OF THE STATE OF
CALIFORNIA PURSUANT TO CHAPTER 67, STATUTES OF 1962, 1ST EXTRAORDINARY
SESSION, AS AMENDED AND DELINEATED ON THAT CERTAIN MISCELLANEOUS MAP
NO. 564, FILED IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON MAY 28,
1976, FILE NO. 76-164686, IN THE CITY OF SAN DIEGO, COUNTY OF SAN DIEGO AND
THAT PORTION OF “G” STREET, AS SAID “G” STREET WAS DEDICATED AND
ESTABLISHED AS AND FOR A PUBLIC STREET BY THE CITY OF CHULA VISTA
COUNSEL RESOLUTION NO. 4205, DATED 4TH OF OCTOBER 1966, (SAN DIEGO UNIFIED
PORT DISTRICT DOCUMENT NO. 2249, DATED 14TH OF OCTOBER 1966) AND THAT
PORTION OF TIDELANDS AVENUE, SUBSEQUENTLY RENAMED MARINA PARKWAY
BY THE CITY OF CHULA VISTA COUNCIL RESOLUTION NO. 12338, WAS ALSO
ESTABLISHED AS AND FOR A PUBLIC STREET BY THE SAID DOCUMENTS OF
CONVEYANCE, TOGETHER WITH THAT PORTION OF PROPERTY DESCRIBED IN THE
FINAL ORDER OF CONDEMNATION RECORDED JUNE 26, 2018 AS INSTRUMENT NO.
2018-0259561, OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
BEGINNING AT STATION NO. 107 ON THE MEAN HIGH TIDE LINE OF THE BAY OF SAN
DIEGO, AS SAID MEAN HIGH TIDE LINE IS SHOWN ON MISCELLANEOUS MAP NO. 217,
FILED IN THE RECORDER'S OFFICE OF THE COUNTY OF SAN DIEGO; THENCE ALONG
SAID MEAN HIGH TIDE LINE SOUTH 58°27'22" EAST (RECORD SOUTH 58°28'01" EAST),
105.95 FEET TO THE INTERSECTION WITH THE RIGHT-OF-WAY OF MARINA PARKWAY,
FORMERLY TIDELANDS AVENUE AS DEDICATED PER DOCUMENT RECORDED
OCTOBER 10,1966 AS FILE NO. 163052 AND THE BEGINNING OF A NON TANGENT 20.00
FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY, A RADIAL LINE TO SAID CURVE
BEARS NORTH 33°15'14" WEST; THENCE ALONG THE ARC OF SAID CURVE THROUGH
A CENTRAL ANGLE OF 49° 04' 34" A DISTANCE OF 17.13 FEET TO THE TRUE POINT OF
BEGINNING. THENCE CONTINUING SOUTHERLY ALONG SAID CURVE AND RIGHT-OF-
WAY OF MARINA PARKWAY THROUGH A CENTRAL ANGLE OF 22°02'58" A DISTANCE
OF 7.70 FEET; THENCE CONTINUING ALONG SAID RIGHT OF WAY THE FOLLOWING
THREE COURSES: 1) SOUTH 14°22'45" EAST, 269.73 FEET TO THE BEGINNING OF A
TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 4,740.00 FEET; 2)
THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 03°32'06"
A DISTANCE OF 292.44 FEET; 3) THENCE SOUTH 17°54'50" EAST, 705.69 FEET; THENCE
LEAVING SAID RIGHT-OF-WAY SOUTH 72°12'12" WEST, 14.67 FEET;
THENCE SOUTH 67°45'00" WEST, 64.39 FEET;
THENCE SOUTH 72°12'12" WEST, 72.20 FEET;
THENCE NORTH 88°19'10" WEST, 23.16 FEET;
THENCE NORTH 78°16'38" WEST, 13.37 FEET;
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THENCE NORTH 74°05'34" WEST, 21.14 FEET;
THENCE NORTH 79°25'36" WEST, 27.73 FEET;
THENCE NORTH 87°11'55" WEST, 23.86 FEET;
THENCE NORTH 03°28'36" EAST, 8.00 FEET;
THENCE NORTH 87°00'15" WEST, 23.79 FEET;
THENCE NORTH 88O14'32" WEST, 31.74 FEET;
THENCE NORTH 89°22'43" WEST, 32.40 FEET;
THENCE SOUTH 89°25'59" WEST, 24.07 FEET;
THENCE SOUTH 88°15'34" WEST, 32.25 FEET;
THENCE NORTH 37°33'31" WEST, 5.60 FEET;
THENCE NORTH 56°17'05" WEST, 8.85 FEET;
THENCE NORTH 76°31'40" WEST, 12.98 FEET;
THENCE NORTH 86°10'39" WEST, 16.09 FEET;
THENCE NORTH 86°35'34" WEST, 18.27 FEET;
THENCE NORTH 80°35'22" WEST, 17.55 FEET;
THENCE NORTH 72°42'50" WEST, 19.41 FEET;
THENCE NORTH 62°34'06" WEST, 24.53 FEET;
THENCE NORTH 63°24'30" WEST, 68.58 FEET;
THENCE NORTH 70°4r58" WEST, 17.06 FEET;
THENCE NORTH 84O56'52" WEST, 14.79 FEET;
THENCE SOUTH 85°45'23" WEST, 11.10 FEET;
THENCE SOUTH 74°10'06" WEST, 9.39 FEET;
THENCE NORTH 17°34'06" WEST, 22.65 FEET;
THENCE NORTH 72°52'32" EAST, 14.25 FEET;
THENCE NORTH 17°34'06" WEST, 346.24 FEET;
THENCE SOUTH 72°45'10" WEST, 45.60 FEET;
THENCE NORTH 62°34'06" WEST, 33.81 FEET;
THENCE NORTH 17°47'38" WEST, 193.43 FEET;
THENCE SOUTH 72°26'06" WEST, 121.66 FEET;
THENCE NORTH 17°34'06" WEST, 1.81 FEET;
THENCE SOUTH 72°25'54" WEST, 118.07 FEET;
THENCE NORTH 17°34'06" WEST, 100.27 FEET;
THENCE NORTH 72°25'54" EAST, 84.95 FEET;
THENCE NORTH 17°47'46" WEST, 372.75 FEET;
THENCE NORTH 63°11'58" EAST, 366.02 FEET;
THENCE SOUTH 26°48'02" EAST, 11.00 FEET TO THE BEGINNING OF A NON-TANGENT
CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 83.00 FEET, A RADIAL LINE TO
SAID CURVE BEARS NORTH 26°48'02" WEST; THENCE ALONG THE ARC OF SAID
CURVE THROUGH A CENTRAL ANGLE OF 39°43'43" A DISTANCE OF 57.55 FEET TO THE
BEGINNING OF A REVERSE CURVE CONCAVE NORTHERLY HAVING A RADIUS OF
77.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 12°55'41" WEST; THENCE
ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 25°46'25" A
DISTANCE OF 34.64 FEET; THENCE SOUTH 17°34'06" EAST, 279.27 FEET; THENCE
NORTH 72°25'54" EAST, 305.50 FEET; THENCE NORTH 17°34'06" WEST, 237.50 FEET;
THENCE NORTH 72°19'26" EAST, 54.89 FEET TO THE TRUE POINT OF BEGINNING.
EXCEPTING THEREFROM ALL DEPOSITS OF MINERALS, INCLUDING OIL AND GAS, IN
SAID LAND, TOGETHER WITH THE RIGHT TO PROSPECT FOR, MINE AND REMOVE
SUCH DEPOSITS FROM SAID LANDS, AS RESERVED BY THE STATE OF CALIFORNIA IN
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STATUTES 1962 FIRST EXTRAORDINARY SESSION, CHAPTER 67, SECTION 87;
STATUTES OF 1963 REGULAR SESSION, CHAPTER 673, SECTION 40.
ALSO EXCEPTING THEREFROM TO THE STATE OF CALIFORNIA, IN ALL THE LAND
DESCRIBED HEREIN, ALL MINERAL AND MINERAL DEPOSITS, INCLUDING BUT NOT
LIMITED TO, OIL AND GAS, OTHER GASES, INCLUDING, BUT NOT LIMITED TO
NONHYDROCARBON AND GEOTHERMAL GASES, OIL SHALE, COAL, PHOSPHATE,
ALUMINA, SILICA, FOSSILS OF ALL GEOLOGICAL AGES, SODIUM, GOLD, SILVER,
METALS AND THEIR COMPOUNDS, ALKALI, ALKALI EARTH, SAND, CLAY, GRAVEL,
SALTS AND MINERAL WATERS, URANIUM, TRONA, AND GEOTHERMAL RESOURCES,
TOGETHER WITH THE RIGHT OF THE STATE OR PERSONS AUTHORIZED BY THE
STATE TO PROSPECT FOR, DRILL FOR, EXTRACT, MINE AND REMOVE SUCH DEPOSITS
OR RESOURCES, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF THE
LANDS AS MAY BE NECESSARY THEREFORE AS RESERVED IN THAT CERTAIN GRANT
DEED RECORDED DECEMBER 30, 1999 AS INSTRUMENT NO. 1999-0845740 OF OFFICIAL
RECORDS.
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Exhibit A-2
Legal Description of the Ground Lease Property
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CHULA VISTA,
IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS
FOLLOWS:
ALL THAT CERTAIN PORTION OF LAND CONVEYED TO THE SAN DIEGO UNIFIED
PORT DISTRICT BY THAT CERTAIN ACT OF LEGISLATURE OF THE STATE OF
CALIFORNIA PURSUANT TO CHAPTER 67, STATUTES OF 1962, 1ST EXTRAORDINARY
SESSION, AS AMENDED AND DELINEATED ON THAT CERTAIN MISCELLANEOUS MAP
NO. 564, FILED IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER ON MAY 28,
1976, FILE NO. 76-164686, IN THE CITY OF SAN DIEGO, COUNTY OF SAN DIEGO AND
THAT PORTION OF “G” STREET, AS SAID “G” STREET WAS DEDICATED AND
ESTABLISHED AS AND FOR A PUBLIC STREET BY THE CITY OF CHULA VISTA
COUNSEL RESOLUTION NO. 4205, DATED 4TH OF OCTOBER 1966, (SAN DIEGO UNIFIED
PORT DISTRICT DOCUMENT NO. 2249, DATED 14TH OF OCTOBER 1966) AND THAT
PORTION OF TIDELANDS AVENUE, SUBSEQUENTLY RENAMED MARINA PARKWAY
BY THE CITY OF CHULA VISTA COUNCIL RESOLUTION NO. 12338, WAS ALSO
ESTABLISHED AS AND FOR A PUBLIC STREET BY THE SAID DOCUMENTS OF
CONVEYANCE, TOGETHER WITH THAT PORTION OF PROPERTY DESCRIBED IN THE
FINAL ORDER OF CONDEMNATION RECORDED JUNE 26, 2018 AS INSTRUMENT NO.
2018-0259561, OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
PARCEL 'A'
BEGINNING AT STATION NO. 107 ON THE MEAN HIGH TIDE LINE OF THE BAY OF SAN
DIEGO, AS SAID MEAN HIGH TIDE LINE IS SHOWN ON MISCELLANEOUS MAP NO. 217,
FILED IN THE RECORDER'S OFFICE OF THE COUNTY OF SAN DIEGO; THENCE ALONG
SAID MEAN HIGH TIDE LINE SOUTH 58°27'22" EAST (RECORD SOUTH 58°28'01" EAST),
105.95 FEET TO THE INTERSECTION WITH THE RIGHT-OF-WAY OF MARINA PARKWAY,
FORMERLY TIDELANDS AVENUE AS DEDICATED PER DOCUMENT RECORDED
OCTOBER 10, 1966 AS FILE NO. 163052 AND THE BEGINNING OF A NON TANGENT 20.00
FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY, A RADIAL LINE TO SAID CURVE
BEARS NORTH 33°15'14" WEST; THENCE ALONG SAID RIGHT OF WAY AND THE ARC
OF SAID CURVE THROUGH A CENTRAL ANGLE OF 49° 04' 33" A DISTANCE OF 17.13
FEET TO A POINT HEREINAFTER KNOWN AS POINT 'A'; THENCE CONTINUING ALONG
SAID RIGHT OF WAY AND THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF
22° 02' 58" A DISTANCE OF 7.70 FEET; THENCE CONTINUING ALONG SAID RIGHT OF
WAY THE FOLLOWING THREE COURSES: 1) SOUTH 14°22'45" EAST, 269.73 FEET TO THE
BEGINNING OF A TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF
4,740.00 FEET; 2) THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL
ANGLE OF 03°32'06" A DISTANCE OF 292.44 FEET; 3) THENCE SOUTH 17°54'50" EAST,
705.69 FEET;
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THENCE LEAVING SAID RIGHT-OF-WAY SOUTH 72°12'12" WEST, 14.67 FEET;
THENCE SOUTH 67°45'00" WEST, 64.39 FEET;
THENCE SOUTH 72°12'12" WEST, 72.20 FEET TO THE TRUE POINT OF BEGINNING;
THENCE SOUTH 72°12'12" WEST, 76.74 FEET;
THENCE SOUTH 65°55'34" WEST, 100.60 FEET;
THENCE SOUTH 72°12'12" WEST, 421.30 FEET;
THENCE SOUTH 68°48'31" WEST, 50.66 FEET;
THENCE SOUTH 72°12'12" WEST, 353.50 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 69.00 FEET;
THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 71°44'52"
A DISTANCE OF 86.40 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE
NORTHEASTERLY HAVING A RADIUS OF 94.00 FEET, A RADIAL LINE TO SAID CURVE
BEARS SOUTH 53°57'04" WEST; THENCE ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 18°00'01" A DISTANCE OF 29.53 FEET TO THE BEGINNING OF A
TANGENT REVERSE CURVE CONCAVE WESTERLY HAVING A RADIUS OF 506.00 FEET;
THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 04°20'39"
A DISTANCE OF 38.36 FEET;
THENCE NORTH 22°23'34" WEST, 59.77 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE EASTERLY HAVING A RADIUS OF 494.00 FEET;
THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 04°35'46"
A DISTANCE OF 39.63 FEET; THENCE NORTH 17°47'48" WEST, 460.08 FEET TO THE
BEGINNING OF A TANGENT CURVE
CONCAVE EASTERLY HAVING A RADIUS OF 4,994.00 FEET; THENCE ALONG THE ARC
OF SAID CURVE THROUGH A CENTRAL ANGLE OF 02°25'18" A DISTANCE OF 211.08
FEET; THENCE NORTH 15°22'30" WEST, 136.86 FEET TO THE BEGINNING OF TANGENT
CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 272.00 FEET; THENCE
ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 78°34'28" A
DISTANCE OF 373.02 FEET;
THENCE NORTH 63°11'58" EAST, 207.99 FEET;
THENCE SOUTH 17°47'46" EAST, 372.75 FEET;
THENCE SOUTH 72°25'54" WEST, 84.95 FEET;
THENCE SOUTH 17°34'06" EAST, 100.27 FEET;
THENCE NORTH 72°25'54" EAST, 118.07 FEET;
THENCE SOUTH 17°34'06" EAST, 1.81 FEET;
THENCE NORTH 72°26'06" EAST, 121.66 FEET;
THENCE SOUTH 17°47'38" EAST, 193.43 FEET;
THENCE SOUTH 62°34'06" EAST, 33.81 FEET;
THENCE NORTH 72°45'10" EAST, 45.60 FEET;
THENCE SOUTH 17°34'06" EAST, 346.24 FEET;
THENCE SOUTH 72°52'32" WEST, 14.25 FEET;
THENCE SOUTH 17°34'06" EAST, 22.65 FEET;
THENCE NORTH 74°10'06" EAST, 9.39 FEET;
THENCE NORTH 85°45'23" EAST, 11.10 FEET;
THENCE SOUTH 84°56'52" EAST, 14.79 FEET;
THENCE SOUTH 70°41'58" EAST, 17.06 FEET;
THENCE SOUTH 63°24'30" EAST, 68.58 FEET;
THENCE SOUTH 62°34'06" EAST, 24.53 FEET;
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THENCE SOUTH 72°42'50" EAST, 19.41 FEET;
THENCE SOUTH 80°35'22" EAST, 17.55 FEET;
THENCE SOUTH 86°35'34" EAST, 18.27 FEET;
THENCE SOUTH 86°10'39" EAST, 16.09 FEET;
THENCE SOUTH 76°31'40" EAST, 12.98 FEET;
THENCE SOUTH 56°17'05" EAST, 8.85 FEET;
THENCE SOUTH 37°33'31" EAST, 5.60 FEET;
THENCE NORTH 88°15'34" EAST, 32.25 FEET;
THENCE NORTH 89°25'59" EAST, 24.07 FEET;
THENCE SOUTH 89°22'43" EAST, 32.40 FEET;
THENCE SOUTH 88°14'32" EAST, 31.74 FEET;
THENCE SOUTH 87°00'15" EAST, 23.79 FEET;
THENCE SOUTH 03°28'36" WEST, 8.00 FEET;
THENCE SOUTH 87°11'55" EAST, 23.86 FEET;
THENCE SOUTH 79°25'36" EAST, 27.73 FEET;
THENCE SOUTH 74°05'34" EAST, 21.14 FEET;
THENCE SOUTH 78°16'38" EAST, 13.37 FEET;
THENCE SOUTH 88°19'10" EAST, 23.16 FEET TO THE TRUE POINT OF BEGINNING.
EXCEPTING THEREFROM ALL DEPOSITS OF MINERALS, INCLUDING OIL AND GAS, IN
SAID LAND, TOGETHER WITH THE RIGHT TO PROSPECT FOR, MINE AND REMOVE
SUCH DEPOSITS FROM SAID LANDS, AS RESERVED BY THE STATE OF CALIFORNIA IN
STATUTES 1962 FIRST EXTRAORDINARY SESSION, CHAPTER 67, SECTION 87;
STATUTES OF 1963 REGULAR SESSION, CHAPTER 673, SECTION 40.
ALSO EXCEPTING THEREFROM TO THE STATE OF CALIFORNIA, IN ALL THE LAND
DESCRIBED HEREIN, ALL MINERAL AND MINERAL DEPOSITS, INCLUDING BUT NOT
LIMITED TO, OIL AND GAS, OTHER GASES, INCLUDING, BUT NOT LIMITED TO
NONHYDROCARBON AND GEOTHERMAL GASES, OIL SHALE, COAL, PHOSPHATE,
ALUMINA, SILICA, FOSSILS OF ALL GEOLOGICAL AGES, SODIUM, GOLD, SILVER,
METALS AND THEIR COMPOUNDS, ALKALI, ALKALI EARTH, SAND, CLAY, GRAVEL,
SALTS AND MINERAL WATERS, URANIUM, TRONA, AND GEOTHERMAL RESOURCES,
TOGETHER WITH THE RIGHT OF THE STATE OR PERSONS AUTHORIZED BY THE
STATE TO PROSPECT FOR, DRILL FOR, EXTRACT, MINE AND REMOVE SUCH DEPOSITS
OR RESOURCES, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF THE
LANDS AS MAY BE NECESSARY THEREFORE AS RESERVED IN THAT CERTAIN GRANT
DEED RECORDED DECEMBER 30, 1999 AS INSTRUMENT NO. 1999-0845740 OF OFFICIAL
RECORDS.
TOGETHER WITH
PARCEL 'B'
BEGINNING AT THE AFOREMENTIONED POINT 'A'; THENCE SOUTH 72°19'26"WEST,
54.89 FEET TO THE TRUE POINT OF BEGINNING OF PARCEL 'B'; THENCE SOUTH
17°34'06" EAST, 237.50 FEET; THENCE SOUTH 72°25'54" WEST, 305.50 FEET; THENCE
NORTH 17°34'06" WEST, 279.27 FEET TO THE BEGINNING OF A NON-TANGENT CURVE
CONCAVE NORTHERLY HAVING A RADIUS OF 77.00 FEET, A RADIAL LINE TO SAID
CURVE BEARS SOUTH 12°50'44" EAST; THENCE ALONG THE ARC OF SAID CURVE
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THROUGH A CENTRAL ANGLE OF 20°30'53" A DISTANCE OF 27.57 FEET TO THE
BEGINNING OF A TANGENT REVERSE CURVE CONCAVE SOUTHERLY HAVING A
RADIUS OF 130.00 FEET; THENCE ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 38°58'15" A DISTANCE OF 88.42 FEET TO THE BEGINNING OF A
TANGENT REVERSE CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 481.00
FEET; THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF
23°17'12" A DISTANCE OF 195.49 FEET; THENCE NORTH 72°19'26" EAST, 1.43 FEET TO
THE TRUE POINT OF BEGINNING OF PARCEL 'B'.
EXCEPTING THEREFROM ALL DEPOSITS OF MINERALS, INCLUDING OIL AND GAS, IN
SAID LAND, TOGETHER WITH THE RIGHT TO PROSPECT FOR, MINE AND REMOVE
SUCH DEPOSITS FROM SAID LANDS, AS RESERVED BY THE STATE OF CALIFORNIA IN
STATUTES 1962 FIRST EXTRAORDINARY SESSION, CHAPTER 67, SECTION 87;
STATUTES OF 1963 REGULAR SESSION, CHAPTER 673, SECTION 40.
ALSO EXCEPTING THEREFROM TO THE STATE OF CALIFORNIA, IN ALL THE LAND
DESCRIBED HEREIN, ALL MINERAL AND MINERAL DEPOSITS, INCLUDING BUT NOT
LIMITED TO, OIL AND GAS, OTHER GASES, INCLUDING, BUT NOT LIMITED TO
NONHYDROCARBON AND GEOTHERMAL GASES, OIL SHALE, COAL, PHOSPHATE,
ALUMINA, SILICA, FOSSILS OF ALL GEOLOGICAL AGES, SODIUM, GOLD, SILVER,
METALS AND THEIR COMPOUNDS, ALKALI, ALKALI EARTH, SAND, CLAY, GRAVEL,
SALTS AND MINERAL WATERS, URANIUM, TRONA, AND GEOTHERMAL RESOURCES,
TOGETHER WITH THE RIGHT OF THE STATE OR PERSONS AUTHORIZED BY THE
STATE TO PROSPECT FOR, DRILL FOR, EXTRACT, MINE AND REMOVE SUCH DEPOSITS
OR RESOURCES, AND TO OCCUPY AND USE SO MUCH OF THE SURFACE OF THE
LANDS AS MAY BE NECESSARY THEREFORE AS RESERVED IN THAT CERTAIN GRANT
DEED RECORDED DECEMBER 30, 1999 AS INSTRUMENT NO. 1999-0845740 OF OFFICIAL
RECORDS.
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Exhibit A-3
Legal Description of Developer’s Phase 1A Site
STREET DEDICATION
BEGINNING AT STATION NO. 107 ON THE MEAN HIGH TIDE LINE OF THE BAY OF SAN
DIEGO, AS SAID MEAN HIGH TIDE LINE IS SHOWN ON MISCELLANEOUS MAP NO. 217,
FILED IN THE RECORDER'S OFFICE OF THE COUNTY OF SAN DIEGO SEPTEMBER 25,
1950 AS FILE NO. 110422; THENCE ALONG SAID MEAN HIGH TIDE LINE SOUTH
58°27'22" EAST (RECORD PER M.M. 217 SOUTH 58°28'01" EAST), 105.95 FEET TO THE
INTERSECTION WITH THE NORTHERLY RIGHT OF WAY LINE OF MARINA PARKWAY
FORMERLY TIDELANDS AVENUE) AS DEDICATED PER DOCUMENT RECORDED
OCTOBER 10, 1966 AS FILE NO. 163052 O.R. AND SHOWN ON SAN DIEGO UNIFIED PORT
DISTRICT DRAWING NO. 484-MB, ALSO BEING A POINT ON A NON-TANGENT CURVE,
CONCAVE EASTERLY, HAVING A RADIUS OF 20.00 FEET, A RADIAL TO WHICH BEARS
NORTH 33°15'14" WEST, BEING THE TRUE POINT OF BEGINNING;
THENCE SOUTHERLY ALONG SAID RIGHT OF WAY AND SAID 20.00 FOOT RADIUS
CURVE THROUGH A CENTRAL ANGLE OF 49° 04' 33" A DISTANCE OF 17.13 FEET;
THENCE LEAVING SAID RIGHT OF WAY SOUTH 72°19'26" WEST, 56.32 FEET TO THE
BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF
481.00 FEET; THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE
OF 23° 17' 12", A DISTANCE OF 195.49 FEET TO THE BEGINNING OF A TANGENT
REVERSE CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 130.00 FEET; THENCE
WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 38° 58' 15" A
DISTANCE OF 88.42 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE
NORTHERLY HAVING A RADIUS OF 77.00 FEET, A RADIAL LINE TO SAID POINT BEARS
SOUTH 33°21'37" EAST; THENCE ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 46°17'18" A DISTANCE OF 62.21 FEET TO THE BEGINNING OF A
REVERSE CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 83.00 FEET, A RADIAL
LINE TO SAID POINT BEARS NORTH 12°55'41" EAST; THENCE ALONG THE ARC OF SAID
CURVE THROUGH A CENTRAL ANGLE OF 39°43'43" A DISTANCE OF 57.55 FEET;
THENCE NORTH 26°48'02" WEST, 11.00 FEET;
THENCE SOUTH 63°11'58" WEST, 574.01 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 272.00 FEET; THENCE
ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 78°34'28" A
DISTANCE OF 373.02 FEET;
THENCE SOUTH 15°22'30" EAST, 136.86 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE EASTERLY HAVING A RADIUS OF 4,994.00 FEET; THENCE ALONG
THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 02°25'18" A DISTANCE OF
211.08 FEET;
THENCE SOUTH 17°47'48" EAST, 460.08 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE EASTERLY HAVING A RADIUS OF 494.00 FEET; THENCE ALONG THE
ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 04°35'46" A DISTANCE OF 39.63
FEET;
THENCE SOUTH 22°23'34" EAST, 59.77 FEET TO THE BEGINNING OF A TANGENT CURVE
CONCAVE WESTERLY HAVING A RADIUS OF 506.00 FEET; THENCE ALONG THE ARC
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OF SAID CURVE THROUGH A CENTRAL ANGLE OF 04°20'39" A DISTANCE OF 38.36
FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE NORTHEASTERLY
HAVING A RADIUS OF 94.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH
71°57'05" WEST; THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL
ANGLE OF 18'00'01" A DISTANCE OF 29.53 FEET TO THE BEGINNING OF A COMPOUND
CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 69.00 FEET, A RADIAL LINE TO
SAID POINT BEARS SOUTH 53°57'04" WEST; THENCE ALONG THE ARC OF SAID CURVE
THROUGH A CENTRAL ANGLE OF 71°44'52" A DISTANCE OF 86.40 FEET;
THENCE NORTH 72°12'12" EAST, 353.50 FEET;
THENCE NORTH 68°48'31" EAST, 50.66 FEET;
THENCE NORTH 72°12'12" EAST, 421.30 FEET;
THENCE NORTH 65°55'34" EAST, 100.60 FEET;
THENCE NORTH 72°12'12" EAST, 107.82 FEET TO THE WESTERLY RIGHT OF WAY LINE
OF SAID MARINA PARKWAY (FORMERLY TIDELANDS AVENUE);
THENCE ALONG SAID RIGHT OF WAY SOUTH 17°54'50" EAST, 84.00 FEET;
THENCE LEAVING SAID RIGHT OF WAY SOUTH 72°12'12" WEST, 72.38 FEET;
THENCE SOUTH 48°21'08" WEST, 27.20 FEET;
THENCE SOUTH 72°12'12" WEST, 497.74 FEET;
THENCE NORTH 17°47'48" WEST, 3.00 FEET;
THENCE SOUTH 72°12'12" WEST, 468.85 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 25.00 FEET; THENCE
ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 41°37'40" A
DISTANCE OF 18.16 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE
NORTHEASTERLY HAVING A RADIUS OF 74.00 FEET, A RADIAL LINE TO SAID POINT
BEARS SOUTH 59°25'28" EAST; THENCE ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 177°46'16" A DISTANCE OF 229.60 FEET TO THE BEGINNING OF A
REVERSE CURVE CONCAVE WESTERLY HAVING A RADIUS OF 66.00 FEET, A RADIAL
LINE TO SAID POINT BEARS SOUTH 61°39'12" EAST; THENCE ALONG THE ARC OF SAID
CURVE THROUGH A CENTRAL ANGLE OF 44°48'44" A DISTANCE OF 51.62 FEET TO THE
BEGINNING OF A COMPOUND CURVE CONCAVE SOUTHWESTERLY HAVING A
RADIUS OF 5.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 73°32'04" EAST;
THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 82°11'46"
A DISTANCE OF 7.17 FEET TO THE BEGINNING OF A NON-TANGENT CURVE CONCAVE
NORTHEASTERLY HAVING A RADIUS OF 14.09 FEET, A RADIAL LINE TO SAID POINT
BEARS SOUTH 08°24'24" EAST; THENCE ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 77°42'50" A DISTANCE OF 19.12 FEET;
THENCE NORTH 17°47'48" WEST, 901.20 FEET;
THENCE NORTH 27°12'12" EAST, 38.28 FEET TO THE BEGINNING OF A NON-TANGENT
CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 320.03 FEET, A RADIAL
LINE TO SAID POINT BEARS SOUTH 73°24'20" WEST; THENCE ALONG THE ARC OF
SAID CURVE THROUGH A CENTRAL ANGLE OF 79°47'38" A DISTANCE OF 445.69 FEET;
THENCE NORTH 63°11'58" EAST, 527.07 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 194.00 FEET; THENCE
ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 33°43'27" A
DISTANCE OF 114.19 FEET TO THE BEGINNING OF A COMPOUND CURVE CONCAVE
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WESTERLY HAVING A RADIUS OF 84.00 FEET, A RADIAL LINE TO SAID POINT BEARS
SOUTH 60°31'29" EAST; THENCE ALONG THE ARC OF SAID CURVE THROUGH A
CENTRAL ANGLE OF 37°26'04" A DISTANCE OF 54.88 FEET TO THE BEGINNING OF A
COMPOUND CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 175.00 FEET,
A RADIAL LINE TO SAID POINT BEARS NORTH 82°02'27" EAST; THENCE ALONG THE
ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 43°17'27" A DISTANCE OF
132.22 FEET;
THENCE NORTH 38°45'00" EAST, 50.00 FEET TO THE BEGINNING OF A NON-TANGENT
CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 225.00 FEET, A RADIAL
LINE TO SAID POINT BEARS NORTH 38°45'00" EAST; THENCE ALONG THE ARC OF SAID
CURVE THROUGH A CENTRAL ANGLE OF 33°21'13" A DISTANCE OF 130.98 FEET TO
THE BEGINNING OF A REVERSE CURVE CONCAVE NORTHEASTERLY HAVING A
RADIUS OF 143.00 FEET, A RADIAL LINE TO SAID POINT BEARS SOUTH 72°06'13" WEST;
THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 28°50'01"
A DISTANCE OF 71.96 FEET;
THENCE SOUTH 46°43'48" EAST, 29.05 FEET TO THE BEGINNING OF A TANGENT CURVE
CONCAVE NORTHEASTERLY HAVING A RADIUS OF 90.00 FEET; THENCE ALONG THE
ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 37°42'36" A DISTANCE OF 59.23
FEET; THENCE SOUTH 84°26'24" EAST, 30.34 FEET TO THE BEGINNING OF A TANGENT
CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 419.00 FEET; THENCE ALONG
THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 14°01'34" A DISTANCE OF
102.57 FEET TO SAID NORTHERLY RIGHT OF WAY LINE OF MARINA PARKWAY AND
THE BEGINNING OF A NON-TANGENT CURVE CONCAVE WESTERLY HAVING A
RADIUS OF 20.00 FEET, A RADIAL TO SAID POINT BEARS SOUTH 60°30'13" EAST;
THENCE ALONG SAID RIGHT OF WAY THE FOLLOWING FIVE COURSES: NORTHERLY
ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 43°53'06" A DISTANCE OF 15.32
FEET; THENCE NORTH 75°36'41" EAST, 60.00 FEET; THENCE SOUTH 14°23'19" EAST, 1.46
FEET; THENCE NORTH 75°36'41" EAST, 14.28 FEET TO SAID MEAN HIGH TIDE LINE;
THENCE ALONG SAID MEAN HIGH TIDE LINE SOUTH 58°27'22" WEST, 85.18 FEET TO
THE TRUE POINT OF BEGINNING.
AREA = 264,248 S.F. OR 6.066 ACRES, MORE OR LESS.
Page 386 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-1-1
4825-3218-1203/024036-0079
Exhibit B-1
Depiction of the Site
Page 387 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-1-2
4825-3218-1203/024036-0079
Page 388 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-1-3
4825-3218-1203/024036-0079
Page 389 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-1-4
4825-3218-1203/024036-0079
Page 390 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-1-5
4825-3218-1203/024036-0079
Page 391 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-1-6
4825-3218-1203/024036-0079
Page 392 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2-1
4825-3218-1203/024036-0079
Exhibit B-2
Depiction of the Ground Lease Property
Page 393 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2-2
4825-3218-1203/024036-0079
Page 394 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2-3
4825-3218-1203/024036-0079
Page 395 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2-4
4825-3218-1203/024036-0079
Page 396 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2-5
4825-3218-1203/024036-0079
Page 397 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2-6
4825-3218-1203/024036-0079
Page 398 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-3-1
4825-3218-1203/024036-0079
Exhibit B-3
Depiction of the Developer’s Phase 1A Infrastructure Improvements Site
Page 399 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-3-2
4825-3218-1203/024036-0079
Page 400 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-3-3
4825-3218-1203/024036-0079
Page 401 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-3-4
4825-3218-1203/024036-0079
Page 402 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-3-5
4825-3218-1203/024036-0079
Page 403 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
C-1-1
4825-3218-1203/024036-0079
Exhibit C-1
Developer’s Phase 1A Infrastructure Improvements
Developer’s Phase 1A infrastructure Improvements include the following improvements, as
described in Attachment D to the DCPA:
E Street (G Street to H Street)
G Street Connection
H Street (Bay Blvd to Street A)
H Street (Marina Pkwy to E Street )
H-3 Utility Corridor
H-3 Site Prep
Page 404 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
C-2-1
4825-3218-1203/024036-0079
Exhibit C-2
Sources for Developer’s Phase 1A Infrastructure Improvements Cost
Source Amount
Agreement
Total
NOTE: Harbor Park is not included in Developer’s Phase 1A Infrastructure Improvements.
NOTE: Amounts available to be reimbursed to Developer under the Sewer Agreement or credited to
Developer under the BFDIF Program are excluded from the Developer’s Phase 1A Contract Sum.
Page 405 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
C-3-1
4825-3218-1203/024036-0079
Exhibit C-3
Developer’s Phase 1A Infrastructure Improvements Budget
Gaylord Pacific - RIDA Chula Vista, LLC - Phase 1A Infrastructure - 05.12.2022 / Final
Item Description Project Goal
A
B
C GENERAL ADMINISTRATION AND SUPERVISION
E BUILDERS RISK, GL AND WC INSURANCE
F
Sweetwater Authority costs, Stormwater Outfall - Waterboard Fee, Army Corps of Engineers, etc.
G IMPACT FEES $0 / CONNECTION FEES $0
H CONTINGENCY
I PAYMENT BONDS
J LEGAL & OTHER PROFESSIONAL FEES
K PROPOSED GATEWAY SIGN
L EARLY WORK - revised as of 3/28/2022
M PROJECT ADMINISTRATION FEE 5%
TOTAL PHASE 1A PROJECT COST EXCLUDING HARBOR
NOTE: Harbor Park is not included in Developer’s Phase 1A Infrastructure Improvements.
NOTE: Amounts available to be reimbursed to Developer under the Sewer Agreement or
credited to Developer under the BFDIF Program are excluded from the Developer’s Phase 1A
Contract Sum.
Page 406 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
D-1-A
4825-3218-1203/024036-0079
Exhibit D-1-A
Remaining Phase 1A Infrastructure Improvements
Sweetwater Park)
Sweetwater Park
A 21-acre signature park on Parcel S-2 (defined in the PMP) with passive use, meadow-type open
space with amenities such as: landscaping, lighting, restrooms, drinking fountains, bicycle racks,
children play areas, picnic areas, benches, trash receptacles, interpretive signage, landscaped berms,
public art, decomposed granite paving, and parking. The park is to be passive in nature, be low-
impact and contain minimal structures. Allowed structures include restrooms, equipment shed, picnic
tables, shade structures and overlooks, and are limited to single-story heights. No athletic field
amenities or unattended food vending will be allowed. The park will utilize low water-use ground
cover alternatives where possible and trails will not be paved. Due to the immediate adjacency to
sensitive habitat areas, amplified sound equipment and issuance of park use permits for group events
will be prohibited. Development of the park also includes the development within the Transition
Buffer Areas and Limited Use zones of parcel SP-1 and the fencing of the No Touch Buffer Area of
parcel SP-1, all as described in the certified PMP.
Page 407 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
D-1-B
4825-3218-1203/024036-0079
Exhibit D-1-B
Sources for Remaining Phase 1A Infrastructure Improvements Cost
Source Amount
Total
A portion of the Other Port District Funds has been spent for costs of the Remaining Phase 1A
Infrastructure Improvements incurred prior to the Date of Agreement.
Page 408 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
D-1-C
4825-3218-1203/024036-0079
Exhibit D-1-C
Engineering Budget for Sweetwater Park
Attached on following pages.)
Page 409 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Port of San Diego
CVB Sweetwater Park
Chula Vista, CA
KTU+A
60% CONSTRUCTION DOCUMENT COST ESTIMATE
OCMI JOB #: 19041.001
25 January 2022
Page 410 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
S1.01 thru S6.09 (23 sheets )
P1-001 thru P1-501 (05 sheets)
EC1.0 thru E5.2 (27 sheets)
Specifications and Reports
COST ESTIMATE
INTRODUCTORY NOTES
This estimate is based on verbal direction from KTU+A and the following items, received through 08 November 2021:
General
Civil
Landscape
Architectural
Structural
Plumbing
Electrical
TS-1.0 thru TS-4.0 (04 sheets)
G-1 thru C-31 (36 sheet)
LC-1.0 thru LP-32.0 (142 sheets)
A0-100 thru AD 800 (20 sheets)
Construction start date of September 2022
The following items are excluded from this estimate:
Inspections and tests.
Construction change order contingency.
The midpoint of construction of March 2023 is based on:
Under the direction of the Port, the escalation reflected is to Start of Construction based on:
We strongly advise the client to review this estimate in detail. If any interpretations in this estimate appear to
differ from those intended by the design documents, they should be addressed immediately.
Estimated construction duration of 12 months
This estimate is based on a Design-Bid-Build delivery method.
This estimate is based on prevailing wage labor rates.
This estimate is based on a detailed measurement of quantities. We have made allowances for items that were
not clearly defined in the drawings. The client should verify these allowances.
This estimate is based on a minimum of four competitive bids and a stable bidding market.
This estimate should be updated if more definitive information becomes available, or if there is any change in
scope.
Page 411 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01. GENERAL REQUIREMENTS TOTAL $184,970
Direct construction cost $140,450
Markups $44,520
02. SITE PREPARATION / DEMOLITION TOTAL $383,102
Direct construction cost $290,894
Markups $92,208
03. GRADING TOTAL $1,191,868
Direct construction cost $905,000
Markups $286,868
04. UTILITIES TOTAL $475,487
Direct construction cost $361,043
Markups $114,444
05. ELECTRICAL / LIGHTING TOTAL $211,548
Direct construction cost $160,631
Markups $50,917
06. RESTROOM TOTAL $445,871
Direct construction cost $338,555
Markups $107,316
07. GROWING GROUND MAINTENANCE SHED TOTAL $255,621
Direct construction cost $194,096
Markups $61,525
08. PARKING LOT IMPROVEMENTS TOTAL $1,204,839
Direct construction cost $914,849
Markups $289,990
09. HARDSCAPE / PAVING/ PATHS TOTAL $1,899,812
Direct construction cost $1,442,550
Markups $457,262
10. INTERPRETIVE / SIGNS / SITE FURNISHINGS TOTAL $1,404,592
Direct construction cost $1,066,524
Markups $338,068
11. PLAYGROUND AREAS TOTAL $779,635
Direct construction cost $591,986
Markups $187,649
DETAILED PROJECT SUMMARY
Prepared by: OCMI Sheet 1 of 76
Page 412 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
12. LANDSCAPE IRRIGATION TOTAL $1,682,364
Direct construction cost $1,277,439
Markups $404,925
13. LANDSCAPE PLANTING TOTAL $3,145,027
Direct construction cost $2,388,057
Markups $756,970
14. DESIGN AND PERMIT FEES TOTAL $1,093,403
Design Fees $955,000
Permit Fees $10,000
Water Capacity Fees
Domestic water service $34,008
Irrigation water service $677,138
TOTAL PARK CONSTRUCTION COST $14,358,139
ELEMENT BREAKOUTS TOTAL COST
01. MAIN PARKING LOT ($838,268)
Cost with markups ($1,103,984)
02. DG LOTS ($268,851)
Cost with markups ($354,072)
03. KUMEYAAY TOOL MAKING PLAZA ($24,759)
Cost with markups ($32,607)
04. GROWING GROUNDS ($237,859)
Cost with markups ($313,256)
05. GROUP EDUCATION RING ($12,546)
Cost with markups ($16,523)
06. MEADOW ARRIVAL ENTRY PLAZA ($221,986)
Cost with markups ($292,351)
07. TIMELINE PLAZA ($205,743)
Cost with markups ($270,960)
08. SOLAR CALENDAR PLAZA ($77,904)
Cost with markups ($102,598)
09. MAP PLAZA AND OVERLOOK ($43,302)
Cost with markups ($57,028)
10. NATURE PLAYGROUND ($782,475)
Cost with markups ($1,030,505)
11. ADVENTURE PLAYGROUND ($249,519)
Cost with markups ($328,612)
Prepared by: OCMI Sheet 2 of 76
Page 413 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
12. WILDLIFE BLINDS ($81,807)
Cost with markups ($107,738)
13. BOARDWALK ($119,336)
Cost with markups ($157,163)
14. SPECIALTY GARDENS ($92,419)
Cost with markups ($121,714)
15. CHANNEL OVERLOOK ($48,162)
Cost with markups ($63,428)
ELEMENT BREAKOUTS SUBTOTAL ($4,352,540)
ADJUSTED TOTAL PARK CONSTRUCTION COST $10,005,599
Prepared by: OCMI Sheet 3 of 76
Page 414 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GENERAL REQUIREMENTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS $140,450
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT SITE COST $140,450
DESIGN CONTINGENCY 2.50%$3,511
SUBTOTAL $143,961
ESCALATION TO START 09/2022 4.31%$6,205
SUBTOTAL $150,166
GENERAL CONDITIONS/REQUIREMENTS 5.00%$7,508
SUBTOTAL $157,674
CONTRACTOR OVERHEAD AND PROFIT 15.00%$23,651
SUBTOTAL $181,325
INSURANCE 1.00%$1,813
SUBTOTAL $183,139
BONDS: CONTRACTOR 1.00%$1,831
TOTAL SITE COST $184,970
SITE SUMMARY
Prepared by: OCMI Sheet 4 of 76
Page 415 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GENERAL REQUIREMENTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
01 GENERAL REQUIREMENTS
Mobilization 1 LS 10,000.00 $10,000
Traffic Control 1 LS 5,000.00 $5,000
Construction BMPs / Erosion Control 1 LS 30,000.00 $30,000
BMP Monitoring & Reporting 1 LS 15,000.00 $15,000
Construction Fencing 12,990 LF 5.00 $64,950
Surveying For Construction Staking 1 LS 15,500.00 $15,500
TOTAL - 01 GENERAL REQUIREMENTS $140,450
Prepared by: OCMI Sheet 5 of 76
Page 416 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
SITE PREPARATION / DEMOLITION
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS $50,370
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK $240,524
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT SITE COST $290,894
DESIGN CONTINGENCY 2.50%$7,272
SUBTOTAL $298,166
ESCALATION TO START 09/2022 4.31%$12,851
SUBTOTAL $311,017
GENERAL CONDITIONS/REQUIREMENTS 5.00%$15,551
SUBTOTAL $326,568
CONTRACTOR OVERHEAD AND PROFIT 15.00%$48,985
SUBTOTAL $375,553
INSURANCE 1.00%$3,756
SUBTOTAL $379,309
BONDS: CONTRACTOR 1.00%$3,793
TOTAL SITE COST $383,102
SITE SUMMARY
Prepared by: OCMI Sheet 6 of 76
Page 417 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
SITE PREPARATION / DEMOLITION
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
02 EXISTING CONDITIONS
Demolition
Existing Signs 30 EA 100.00 $3,000
Permeable concrete 900 SF 1.15 $1,035
Existing Asphalt Driveway & Concrete Apron 4,740 SF 1.15 $5,451
Existing Road (Asphalt & Hardened Earth)5,185 SF 1.15 $5,963
Existing DG Areas with 0" curb 1,700 SF 1.00 $1,700
K rail 170 LF 5.00 $850
Existing Chainlink Fencing 1,850 LF 6.12 $11,329
Promenade Chainlink Fencing 2,010 LF 6.12 $12,309
Recycle and Re-use chainlink fence fabric)
Wood fence 75 LF 3.03 $227
Existing Bollard 3 EA 125.00 $375
Existing Water Main Removal 330 LF 14.01 $4,624
Existing Water Main Abandonment 220 LF 8.00 $1,760
slurry fill pipe under improvements)
Existing fire hydrant removal 2 EA 500.00 $1,000
Concrete curb and gutter removal 75 LF 5.68 $426
Existing Asphalt Curb removal 70 LF 4.59 $321
TOTAL - 02 EXISTING CONDITIONS $50,370
31 EARTHWORK
Clearing and grubbing
Clearing and grubbing 1,116,690 SF 0.20 $223,338
Clearing and grubbing in disturbed habitat areas 39,500 SF 0.20 $7,900
Protect in place native vegetation & mitigation 98,000 SF 0.05 $4,900
Remove tree, medium 6 EA 731.02 $4,386
TOTAL - 31 EARTHWORK $240,524
Prepared by: OCMI Sheet 7 of 76
Page 418 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GRADING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK $905,000
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT SITE COST $905,000
DESIGN CONTINGENCY 2.50%$22,625
SUBTOTAL $927,625
ESCALATION TO START 09/2022 4.31%$39,981
SUBTOTAL $967,606
GENERAL CONDITIONS/REQUIREMENTS 5.00%$48,380
SUBTOTAL $1,015,986
CONTRACTOR OVERHEAD AND PROFIT 15.00%$152,398
SUBTOTAL $1,168,384
INSURANCE 1.00%$11,684
SUBTOTAL $1,180,068
BONDS: CONTRACTOR 1.00%$11,801
TOTAL SITE COST $1,191,868
SITE SUMMARY
Prepared by: OCMI Sheet 8 of 76
Page 419 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GRADING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
31 EARTHWORK
Earth work
Site cut 16,500 CY 20.00 $330,000
Import 25,000 CY 15.00 $375,000
Grading
Fine grading 200,000 SF 1.00 $200,000
TOTAL - 31 EARTHWORK $905,000
Prepared by: OCMI Sheet 9 of 76
Page 420 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
UTILITIES
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS
33 UTILITIES $361,043
NET DIRECT SITE COST $361,043
DESIGN CONTINGENCY 2.50%$9,026
SUBTOTAL $370,069
ESCALATION TO START 09/2022 4.31%$15,950
SUBTOTAL $386,019
GENERAL CONDITIONS/REQUIREMENTS 5.00%$19,301
SUBTOTAL $405,320
CONTRACTOR OVERHEAD AND PROFIT 15.00%$60,798
SUBTOTAL $466,118
INSURANCE 1.00%$4,661
SUBTOTAL $470,779
BONDS: CONTRACTOR 1.00%$4,708
TOTAL SITE COST $475,487
SITE SUMMARY
Prepared by: OCMI Sheet 10 of 76
Page 421 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
UTILITIES
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
33 UTILITIES
Electrical service
Conduit and conductor from meter to restroom
Ductbank
Conduits, PVC
1) 1-1/4"486 LF 28.68 $13,938
Conductors
1 1,458 LF 3.25 $4,739
8 486 LF 1.17 $569
Conduit and conductor for sewer lift station
Ductbank
Conduits, PVC 3/4"150 LF 20.87 $3,131
Conductors , # 12 600 LF 0.83 $498
Additional circuit breaker to meter pedestal 1 EA 500.00 $500
Storm Drain Infrastructure
12" PVC Storm Drain 1,220 LF 80.07 $97,685
Catch basin with grate 18"x18"15 EA 1,820.00 $27,300
Biofiltration Media 318 CY 80.00 $25,440
Drainage Rock 318 CY 100.00 $31,800
Impermeable Liner 5,730 SF 3.00 $17,190
Tybe B Curb Inlet 1 EA 3,230.00 $3,230
Swale 24,270 SF 1.50 $36,405
Perforated drain, bedding and filter fabric 380 LF 34.64 $13,162
Culvert, 8" PVC 50 LF 38.84 $1,942
Culvert, 12" RCP 28 LF 43.94 $1,230
Culvert, 24" RCP 26 LF 96.53 $2,510
Domestic water service
Connect To Existing Water 1 LS 1,000.00 $1,000
Reduced Pressure Backflow Preventer 1 EA 950.00 $950
Water Meter 1 EA 490.00 $490
Pipe and fittings, PVC C900, including
trench and backfill, 2"470 LF 37.81 $17,771
Thrust blocks 2 EA 170.22 $340
Valves 2 EA 561.67 $1,123
Water meter - water capacity fee, 1.5", refer to design and NIC
permit fees on summary sheet
Sanitary Waste Service
Pump Station - ReliaSource 6x6 Above ground Station 1 LS 6,470.00 $6,470
Wet Well - 4' diameter, t-lock lined 1 LS 1,000.00 $1,000
Connect To Existing Sewer 1 LS 1,000.00 $1,000
Manhole 4 EA 5,620.00 $22,480
Pipe and fittings, PVC SDR-35, including
trench and backfill
4" 480 LF 27.77 $13,330
Sewer Cleanout 5 EA 2,400.00 $12,000
Prepared by: OCMI Sheet 11 of 76
Page 422 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
UTILITIES
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Irrigation Water Service
Connect To Existing Stubouts 2"1 EA 650.00 $650
Water Meter, 2"1 EA 1,170.00 $1,170
Water meter - water capacity fee, 2", refer to design and NIC
permit fees on summary sheet
TOTAL - 33 UTILITIES $361,043
Prepared by: OCMI Sheet 12 of 76
Page 423 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
ELECTRICAL / LIGHTING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL $160,631
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT SITE COST $160,631
DESIGN CONTINGENCY 2.50%$4,016
SUBTOTAL $164,647
ESCALATION TO START 09/2022 4.31%$7,096
SUBTOTAL $171,743
GENERAL CONDITIONS/REQUIREMENTS 5.00%$8,587
SUBTOTAL $180,330
CONTRACTOR OVERHEAD AND PROFIT 15.00%$27,050
SUBTOTAL $207,380
INSURANCE 1.00%$2,074
SUBTOTAL $209,454
BONDS: CONTRACTOR 1.00%$2,095
TOTAL SITE COST $211,548
SITE SUMMARY
Prepared by: OCMI Sheet 13 of 76
Page 424 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
ELECTRICAL / LIGHTING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
26 ELECTRICAL
Lighting
Lighting Fixtures, exterior LED, pole mounted
Ouro Arm Mount (Double)3 EA 2,850.00 $8,550
Ouro Arm Mount (Single)6 EA 2,660.00 $15,960
Ouro Post Top 3 EA 2,996.00 $8,988
Conduit & Wire 3,585 LF 16.00 $57,360
Pull Boxes 4 EA 1,663.20 $6,653
Future EV charging station
Equipment, by others NIC
Electrical utility trench, including excavation,550 LF 75.00 $41,250
backfill and patch back
Ductbank
Conduits, PVC 1"1,000 LF 21.87 $21,870
TOTAL - 26 ELECTRICAL $160,631
Prepared by: OCMI Sheet 14 of 76
Page 425 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
RESTROOM
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST $/SF AREA
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE $86,872 $286.71
04 MASONRY
05 METALS $119,300 $393.73
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION $13,675 $45.13
08 OPENINGS $13,982 $46.15
09 FINISHES $11,942 $39.41
10 SPECIALTIES $10,255 $33.84
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING $58,637 $193.52
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL $23,892 $78.85
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT BUILDING COST $338,555 $1,117.34
DESIGN CONTINGENCY 2.50%$8,464 $27.93
SUBTOTAL $347,019 $1,145.28
ESCALATION TO START 09/2022 4.31%$14,957 $49.36
SUBTOTAL $361,975 $1,194.64
GENERAL CONDITIONS/REQUIREMENTS 5.00%$18,099 $59.73
SUBTOTAL $380,074 $1,254.37
CONTRACTOR OVERHEAD AND PROFIT 15.00%$57,011 $188.16
SUBTOTAL $437,085 $1,442.53
INSURANCE 1.00%$4,371 $14.43
SUBTOTAL $441,456 $1,456.95
BONDS: CONTRACTOR 1.00%$4,415 $14.57
TOTAL BUILDING COST $445,871 $1,471.52
GROSS FLOOR AREA:303 SF
BUILDING SUMMARY
Prepared by: OCMI Sheet 15 of 76
Page 426 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
RESTROOM
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
03 CONCRETE
Pier footing, assembly 7 CY 629.96 $4,410
Matt footing, assembly 28 CY 638.55 $17,879
Slab on grade NIC
Cast in place concrete wall
8" Concrete retaining wall, reinforced 1,233 SF 50.90 $62,759
CIP Concrete bench 6 LF 303.92 $1,824
Miscellaneous
Sealer, see divion 09 NIC
TOTAL - 03 CONCRETE $86,872
05 METALS
Structural steel 9 TON 5,148.04 $46,332
Galvanized premium, Allowance 9 TON 868.66 $7,818
Roof
Metal deck
Verco, shallow vercor deck 945 SF 3.26 $3,077
Exterior rated steel, premium 945 SF 2.49 $2,356
Parasoleil 4x8 screen panel system 12 EA 4,500.00 $54,000
Metal perforated screen 155 SF 36.89 $5,717
TOTAL - 05 METALS $119,300
07 THERMAL AND MOISTURE PROTECTION
Roofing
Solid membrane roof 945 SF 7.78 $7,352
Rigid insulation 945 SF 4.89 $4,622
Flashing and sheet metal accessories 945 SF 1.80 $1,701
TOTAL - 07 THERMAL AND MOISTURE PROTECTION $13,675
08 OPENINGS
Exterior doors
Hollow metal including frame and hardware
Single , FRP 2 EA 1,593.15 $3,186
Single stall door 4"undercut , FRP 4 EA 1,493.15 $5,973
Miscellaneous
Prepared by: OCMI Sheet 16 of 76
Page 427 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
RESTROOM
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Closer 6 EA 389.95 $2,340
Interior doors
Hollow metal including frame and hardware
Single 1 EA 2,093.15 $2,093
Miscellaneous
Closer 1 EA 389.95 $390
TOTAL - 08 OPENINGS $13,982
09 FINISHES
Wall
Concrete, sealer 4,988 SF 1.58 $7,894
Floor
Concrete, sealer 2,558 SF 1.58 $4,048
TOTAL - 09 FINISHES $11,942
10 SPECIALTIES
Restroom accessories
Grab bar set 1 EA 251.68 $252
Paper towel dispenser and waste receptacle 1 EA 911.66 $912
Soap dispenser 1 EA 105.09 $105
Feminine napkin dispenser, 1 coin 1 EA 993.59 $994
Feminine napkin disposal 3 EA 174.78 $524
Toilet seat cover dispenser 5 EA 138.34 $692
Single 5 EA 67.05 $335
Robe hook 5 EA 30.49 $152
Mirror, metal frame 1 EA 91.01 $91
Diaper changing station 1 EA 380.45 $380
Hand dryer, electric sensor 1 EA 959.79 $960
Mop and broom rack 1 EA 258.18 $258
Miscellaneous
Signage 1 LS 600.00 $600
Interpretative element at oculus, Allowance 1 LS 4,000.00 $4,000
TOTAL - 10 SPECIALTIES $10,255
22 PLUMBING
Equipment NIC
Fixtures including rough-in
Water closet 4 EA 2,558.00 $10,232
Prepared by: OCMI Sheet 17 of 76
Page 428 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
RESTROOM
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Water closet (ADA) 1 EA 2,905.00 $2,905
Lavatory, vanity mounted 2 EA 2,526.00 $5,052
Service sink 1 EA 2,086.00 $2,086
Drinking fountain, high-low 1 EA 3,968.00 $3,968
Floor drain with P- trap and strainer 6 EA 369.00 $2,214
Hose bibb 2 EA 215.80 $432
EEW 1 EA 350.00 $350
Domestic water system
Building entrance 2"
Main shut-off valve 1 EA 292.29 $292
Backflow preventer 1 EA 2,375.41 $2,375
Pressure regulator 1 EA 620.00 $620
Trap primer with access panel 2 EA 154.00 $308
Water hammer arrester with access panel 2 EA 208.86 $418
Pipe with fittings and supports
Below grade (type "K" copper)
1/2"28 LF 19.51 $546
2"6 LF 57.70 $346
Trench, backfill, and remove excess spoil 2 CY 96.38 $193
Above grade, cold water (type "L" copper)
1/2"100 LF 16.98 $1,698
3/4"34 LF 18.57 $631
1"58 LF 20.20 $1,172
1-1/4"13 LF 32.32 $420
1-1/2"15 LF 28.07 $421
2"32 LF 39.06 $1,250
Hot water piping NIC
Valves 1 LS 1,000.00 $1,000
Sanitary waste system
Pipe with fittings, below grade, Cast iron
2"55 LF 38.70 $2,129
3"5 LF 43.47 $217
4"74 LF 50.66 $3,749
Trench, backfill, and remove excess spoil 13 CY 96.38 $1,253
Floor clean-out 1 EA 503.00 $503
Two way clean-out 1 EA 1,156.00 $1,156
Sanitary vent system, includes vent through roofs
Pipe with fittings and supports, above grade, Cast iron
1-1/2" 59 LF 40.25 $2,375
2" 171 LF 43.47 $7,433
4" 11 LF 55.67 $612
Vent through roof
3"- 4"1 EA 199.00 $199
Miscellaneous including seismic control, system test,
Prepared by: OCMI Sheet 18 of 76
Page 429 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
RESTROOM
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
flush and chlorinate, identification and fire stop 215 SF 0.38 $82
TOTAL - 22 PLUMBING $58,637
23 HEATING, VENTILATING, AND AIR CONDITIONING
Assume building is naturally ventilated NIC
TOTAL - 23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
Service and distribution
Normal power
Main switch gear, assumed in site NIC
Meter Pedestal 2 EA 250.00 $500
Panel board 1 EA 3,400.00 $3,400
Building feeder 1 LS 500.00 $500
Building grounding system 1 LS 650.00 $650
Equipment connection including disconnect switch 1 LS 600.00 $600
and junction box
Lighting system
Lighting control 1 LS 500.00 $500
Fixtures
L04 - 6'long led tape light 6 EA 550.00 $3,300
L01- Surface mounted half round led 3 EA 650.00 $1,950
L02- Surface mounted vandal resistant led 5 EA 550.00 $2,750
L03- Surface mounted industrial strip 4' long 3 EA 450.00 $1,350
L05 Recessed direct view led 15 LF 100.00 $1,500
Junction box 2 EA 46.17 $92
Light switch, Toggle, 1-3 gang 1 EA 79.37 $79
Occupancy sensor 10 EA 197.22 $1,972
Conduit and wire 333 LF 9.61 $3,200
Convenience power
Receptacles
Duplex 3 EA 103.87 $312
Junction box 1 EA 46.17 $46
Conduit and wire 105 LF 9.61 $1,009
Miscellaneous including seismic bracing,
identification and fire stop 303 SF 0.60 $182
TOTAL - 26 ELECTRICAL $23,892
Prepared by: OCMI Sheet 19 of 76
Page 430 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUND MAINTENANCE SHED
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST $/SF AREA
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE $68,121 $108.13
04 MASONRY
05 METALS $64,465 $102.33
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION $27,725 $44.01
08 OPENINGS $12,840 $20.38
09 FINISHES $4,210 $6.68
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL $16,735 $26.56
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT BUILDING COST $194,096 $308.09
DESIGN CONTINGENCY 2.50%$4,852 $7.70
SUBTOTAL $198,948 $315.79
ESCALATION TO START 09/2022 4.31%$8,575 $13.61
SUBTOTAL $207,523 $329.40
GENERAL CONDITIONS/REQUIREMENTS 5.00%$10,376 $16.47
SUBTOTAL $217,899 $345.87
CONTRACTOR OVERHEAD AND PROFIT 15.00%$32,685 $51.88
SUBTOTAL $250,584 $397.75
INSURANCE 1.00%$2,506 $3.98
SUBTOTAL $253,090 $401.73
BONDS: CONTRACTOR 1.00%$2,531 $4.02
TOTAL BUILDING COST $255,621 $405.75
GROSS FLOOR AREA:630 SF
BUILDING SUMMARY
Prepared by: OCMI Sheet 20 of 76
Page 431 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUND MAINTENANCE SHED
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
03 CONCRETE
Steel post pier footing 4 CY 629.96 $2,520
Matt footing, assembly 26 CY 638.55 $16,602
Slab on grade
Reinforced concrete slab, 4" thick 534 SF 10.43 $5,571
Sand base course 3 CY 63.65 $191
Concrete retaining wall, reinforced 853 SF 50.69 $43,237
TOTAL - 03 CONCRETE $68,121
05 METALS
Structural steel 2 TON 5,206.18 $10,412
Galvanized premium, Allowance 1 TON 895.58 $896
Exposed steel finish, premium 1 TON 488.77 $489
Roof
Metal deck
1-1/2"630 SF 3.33 $2,097
Woven wiremesh panels 228 SF 68.29 $15,571
Parasoleil screen panel system 250 SF 140.00 $35,000
TOTAL - 05 METALS $64,465
07 THERMAL AND MOISTURE PROTECTION
Roofing
Corrugated metal steel 630 SF 11.10 $6,991
Fascia 150 LF 14.33 $2,149
Growing Grounds Shade Shelter 413 SF 45.00 $18,585
TOTAL - 07 THERMAL AND MOISTURE PROTECTION $27,725
08 OPENINGS
Exterior doors
Hollow metal including frame and hardware
Single 2 EA 2,091.13 $4,182
Roll-up door
10' 0" x 8' 0" high 2 EA 3,061.32 $6,123
Miscellaneous
Prepared by: OCMI Sheet 21 of 76
Page 432 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUND MAINTENANCE SHED
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Closer 2 EA 389.20 $778
Panic hardware 2 EA 878.68 $1,757
TOTAL - 08 OPENINGS $12,840
09 FINISHES
Wall
Concrete, sealer 1,706 SF 1.58 $2,700
Floor
Concrete, sealer 540 SF 1.58 $855
Ceiling
Paint 540 SF 1.21 $655
TOTAL - 09 FINISHES $4,210
26 ELECTRICAL
Service and distribution, Growing Ground Maintenance Equipment shade
Normal power
Panel board 1 EA 3,400.00 $3,400
Building feeder 1 LS 500.00 $500
Building grounding system 1 LS 500.00 $500
Lighting system
Lighting control 1 LS 500.00 $500
Fixtures, LED Industrial strip 3 EA 550.00 $1,650
Junction box 1 EA 46.17 $46
Light switch, Three way 2 EA 92.61 $185
Occupancy sensor 1 EA 197.22 $197
Conduit and wire 315 LF 9.61 $3,027
Convenience power
Receptacles
Duplex 3 EA 103.87 $312
Special receptacle 5 EA 337.39 $1,687
Junction box 1 EA 46.17 $46
Conduit and wire 450 LF 9.61 $4,325
Miscellaneous including seismic bracing,
identification and fire stop 600 SF 0.60 $360
TOTAL - 26 ELECTRICAL $16,735
Prepared by: OCMI Sheet 22 of 76
Page 433 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
PARKING LOT IMPROVEMENTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS $914,849
33 UTILITIES
NET DIRECT SITE COST $914,849
DESIGN CONTINGENCY 2.50%$22,871
SUBTOTAL $937,720
ESCALATION TO START 09/2022 4.31%$40,416
SUBTOTAL $978,136
GENERAL CONDITIONS/REQUIREMENTS 5.00%$48,907
SUBTOTAL $1,027,043
CONTRACTOR OVERHEAD AND PROFIT 15.00%$154,056
SUBTOTAL $1,181,099
INSURANCE 1.00%$11,811
SUBTOTAL $1,192,910
BONDS: CONTRACTOR 1.00%$11,929
TOTAL SITE COST $1,204,839
SITE SUMMARY
Prepared by: OCMI Sheet 23 of 76
Page 434 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
PARKING LOT IMPROVEMENTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Sweetwater Park Parking Lot
Hardscape
Pedestrian Concrete paving, 4" nat gray 979 SF 6.10 $5,972
Scarify & Compact Top 6"979 SF 0.73 $715
Vehicular Concrete paving, 7.5" nat gray 775 SF 9.03 $7,000
Scarify & Compact Top 6"775 SF 0.73 $566
Dune Concrete paving, 7.5" vehicular, int. color 131 SF 22.03 $2,886
Scarify & Compact Top 6"131 SF 0.73 $96
Construction joints 398 LF 1.04 $414
Expansion joints 130 LF 0.81 $105
Asphaltic concrete paving, 3"20,258 SF 2.22 $44,973
Base, 8.5"20,258 SF 3.66 $74,144
Scarify & Compact Top 6"20,258 SF 0.73 $14,788
Asphaltic concrete paving, 4" heavy duty 18,259 SF 5.00 $91,295
Recycled base 13.5"18,259 SF 5.02 $91,660
Scarify & Compact Top 6"18,259 SF 0.73 $13,329
Curb 2,956 LF 16.36 $48,366
Curb ramp concrete 390 SF 12.25 $4,779
Cross gutter 75 LF 29.47 $2,210
Curb, 12"132 LF 16.36 $2,160
Driveway Apron 180 SF 8.10 $1,458
Paving specialties
Striped parking stall 76 EA 18.73 $1,424
ADA symbol, painted 8 EA 100.48 $804
Pole mounted sign 8 EA 312.74 $2,502
Cross hatching 373 SF 1.21 $451
Truncated dome, plastic 176 SF 29.49 $5,190
Wheel Stops, concrete 8 EA 85.65 $685
Miscellaneous
Stabilized Decomposed Granite, 6"32,151 SF 5.42 $174,387
over aggregate base, 9-1/2"
Scarify & compact soil base top 12", 95% compacted 32,151 SF 0.73 $23,470
Trash enclosure
Concrete paving slab top cast finish 7.5"thick 562 SF 12.94 $7,270
Sub-base course 4"2 CY 85.84 $184
Scarify & Compact Top 6"562 SF 0.73 $410
Concrete curb 25 LF 17.87 $447
Thickened edge 1 CY 279.50 $280
Structural steel 1 TON 5,206.18 $5,206
Metal gate, double 18'wide 1 PR 3,003.52 $3,004
CMU, split faced filled and reinforced 8"249 SF 74.61 $18,579
Continuous footings 5 CY 778.90 $3,895
Spread footing, assembly 1 CY 638.55 $639
Corrugated metal roof 183 SF 17.07 $3,124
Concrete filled, steel bollard 2 EA 785.18 $1,570
Prepared by: OCMI Sheet 24 of 76
Page 435 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
PARKING LOT IMPROVEMENTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Ancillary Decomposed Granite Parking Lots (2)
Hardscape
Pedestrian Concrete paving, 4" nat gray 1,760 SF 6.10 $10,737
Scarify & Compact Top 6"1,760 SF 0.73 $1,285
Vehicular Concrete paving, 7.5" nat gray 843 SF 9.03 $7,614
Scarify & Compact Top 6"843 SF 0.73 $615
Construction joints 306 LF 1.04 $318
Expansion joints 97 LF 0.81 $79
Asphaltic concrete paving, 4" heavy duty 555 SF 5.00 $2,775
Recycled base 13.5"555 SF 5.02 $2,786
Scarify & Compact Top 12"555 SF 0.73 $405
Curb 967 LF 16.36 $15,822
Concrete mow strip 72 LF 9.20 $662
Ramp, premium 450 SF 12.25 $5,514
Paving specialties
Stop/Yield Sign 1 EA 322.74 $323
Striped parking stall 4 EA 18.73 $75
ADA symbol, painted 4 EA 100.48 $402
Pole mounted sign, ADA parking 4 EA 312.74 $1,251
Cross hatching 178 SF 1.21 $215
Truncated dome, plastic 54 SF 29.49 $1,592
Miscellaneous
Stabilized Decomposed Granite, 6"28,059 SF 5.42 $152,080
over aggregate base, 9-1/2"
Scarify & compact soil base top 12", 95% compacted 28,059 SF 0.73 $20,483
Stabilized Decomposed Granite, 4"5,596 SF 4.52 $25,294
Scarify & compact soil base top 12", 5,596 SF 0.73 $4,085
moisture-conditioned 90%
TOTAL - 32 EXTERIOR IMPROVEMENTS $914,849
Prepared by: OCMI Sheet 25 of 76
Page 436 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
HARDSCAPE / PAVING/ PATHS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS $1,442,550
33 UTILITIES
NET DIRECT SITE COST $1,442,550
DESIGN CONTINGENCY 2.50%$36,064
SUBTOTAL $1,478,614
ESCALATION TO START 09/2022 4.31%$63,728
SUBTOTAL $1,542,342
GENERAL CONDITIONS/REQUIREMENTS 5.00%$77,117
SUBTOTAL $1,619,459
CONTRACTOR OVERHEAD AND PROFIT 15.00%$242,919
SUBTOTAL $1,862,378
INSURANCE 1.00%$18,624
SUBTOTAL $1,881,002
BONDS: CONTRACTOR 1.00%$18,810
TOTAL SITE COST $1,899,812
SITE SUMMARY
Prepared by: OCMI Sheet 26 of 76
Page 437 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
HARDSCAPE / PAVING/ PATHS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Pedestrian Concrete paving, 4" nat gray 14,944 SF 6.10 $91,167
Scarify & Compact Top 6"14,944 SF 0.73 $10,909
Vehicular Concrete paving, 7.5" nat gray 3,129 SF 9.03 $28,261
Scarify & Compact Top 6"3,129 SF 0.73 $2,284
Pedestrian concrete paving, 4" pedestrian, integral color 5,021 SF 10.10 $50,721
Scarify & Compact Top 6"5,021 SF 0.73 $3,665
Pedestrian concrete paving, 4",pedes., int. color, Dune as 2,091 SF 20.10 $42,030
lithocrete
Scarify & Compact Top 6"2,091 SF 0.73 $1,526
Vehicular concrete paving, 7.5" integral color, Dune 1,903 SF 22.03 $41,927
Scarify & Compact Top 6"1,903 SF 0.73 $1,389
Pedestrian concrete paving, 4", integral color Kailua 1,505 SF 18.10 $27,241
Scarify & Compact Top 6"1,505 SF 0.73 $1,099
Pedestrian concrete paving, 4", integral color Kailua as 484 SF 18.10 $8,761
lithocrete
Scarify & Compact Top 6"484 SF 0.73 $353
Pedestrian concrete paving, 4", seeded aggregate 980 SF 9.62 $9,426
Scarify & Compact Top 6"980 SF 0.73 $715
Construction joints 4,228 LF 1.04 $4,397
Expansion joints 2,277 LF 0.81 $1,844
Truncated dome, plastic 251 SF 29.49 $7,401
Ramp, premium 924 SF 12.25 $11,322
Curb 6"5,133 LF 16.36 $83,985
Mow Curb 12"449 LF 19.20 $8,621
Concrete Curb at Playground 12"641 LF 30.87 $19,788
Porous Concrete Path Shoulder 337 SF 25.00 $8,425
Base, 8.5" washed crushed rock 337 SF 3.66 $1,233
Scarify & Compact Top 12"337 SF 0.73 $246
Concrete thickened edge at Playground 4 CY 279.50 $1,118
Asphaltic concrete paving, 3"2,085 SF 2.22 $4,629
Base, 8.5"2,085 SF 3.66 $7,631
Scarify & Compact Top 12"2,085 SF 0.73 $1,522
Miscellaneous
Metal banding in concrete at Restroom 263 LF 9.76 $2,567
4" tall etched lettering in concrete 208 EA 50.00 $10,400
Map plaza lithochrome chemstain graphic 300 SF 6.00 $1,800
Map Plaza - bronze lettering 97 EA 75.00 $7,275
Medaliion etched logo 10.6 SF 125.00 $1,325
Stabilized Decomposed Granite, 4"65,164 SF 4.52 $294,541
Scarify & compact soil base top 12", 65,164 SF 0.73 $47,570
moisture-conditioned 90%
Sand Surfacing (playground) 4" depth 12.8 CY 136.53 $1,748
Sand Surfacing (playground) 12" depth 137.2 CY 136.53 $18,732
95% Compacted subgrade 12"4,745 SF 0.73 $3,464
Filter fabric 4,745 SF 1.00 $4,745
Prepared by: OCMI Sheet 27 of 76
Page 438 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
HARDSCAPE / PAVING/ PATHS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Perforated drain, bedding and filter fabric 126 LF 34.64 $4,364
Dune Sand (on dunes) 12" depth 686.3 CY 136.53 $93,701
PIP Rubberized Surfacing with aliphatic binder 13,348 SF 13.02 $173,791
Over pedestrian thickness natural gray concrete 13,348 SF 6.18 $82,523
Scarify & Compact Top 6"13,348 SF 0.73 $9,744
Area Drains beneath PIP, slope PIP concrete 1 LS 6,000.00 $6,000
PIP Rubberized Surfacing Taper 144 LF 10.00 $1,440
Boardwalk 1,631 SF 70.00 $114,170
Footing, assembly 8.2 CY 629.96 $5,166
Overlook Platform
Overlook Platform - Guardrail 46 LF 297.65 $13,692
CIP concrete seat wall 27 LF 225.00 $6,075
Continuous footings, Allowance 2.19 CY 759.84 $1,664
CIP Concrete wall 8"305 SF 52.23 $15,931
Continuous footings, Allowance 7 CY 759.84 $5,319
Pedestrian Bridge
Pedestrain bridge - Guardrail 48 LF 297.65 $14,287
CIP Concrete wall 8"296 SF 52.23 $15,461
Turn down edge 1.76 CY 278.33 $490
Concrete pan 59 SF 13.37 $782
Aggregate for turn down edge 59 SF 2.51 $147
TOTAL - 32 EXTERIOR IMPROVEMENTS $1,442,550
Prepared by: OCMI Sheet 28 of 76
Page 439 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
INTERPRETIVE / SIGNS / SITE FURNISHINGS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS $1,066,524
33 UTILITIES
NET DIRECT SITE COST $1,066,524
DESIGN CONTINGENCY 2.50%$26,663
SUBTOTAL $1,093,187
ESCALATION TO START 09/2022 4.31%$47,116
SUBTOTAL $1,140,303
GENERAL CONDITIONS/REQUIREMENTS 5.00%$57,015
SUBTOTAL $1,197,319
CONTRACTOR OVERHEAD AND PROFIT 15.00%$179,598
SUBTOTAL $1,376,916
INSURANCE 1.00%$13,769
SUBTOTAL $1,390,686
BONDS: CONTRACTOR 1.00%$13,907
TOTAL SITE COST $1,404,592
SITE SUMMARY
Prepared by: OCMI Sheet 29 of 76
Page 440 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
INTERPRETIVE / SIGNS / SITE FURNISHINGS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Interpretive Signs & Elements 13 EA 4,020.00 $52,260
Sign Footing, assembly 5.6 CY 639.96 $3,584
Entry Monument Sign 1
Dry stack rubble stone masonary wall 362 SF 18.00 $6,516
Concrete wall 10"114 SF 67.23 $7,664
Continuous footings 6.9 CY 778.90 $5,374
Compacted subgrade 265 SF 0.73 $193
2'4"Steel lettering 3/8"thk.4 EA 2,250.00 $9,000
2'0"Steel lettering 3/8"thk.24 EA 2,000.00 $48,000
Lettering tube pipe support, Allowance 1 LS 2,000.00 $2,000
Entry Monument Sign 2
Dry stack rubble stone masonary wall 124 SF 18.00 $2,223
Concrete wall 12"20 SF 77.23 $1,545
Continuous footings 1.7 CY 778.90 $1,324
Column Footing, assembly 0.6 CY 629.96 $378
Compacted subgrade 110 SF 0.73 $80
14"Steel lettering 3/8"thk.2 EA 1,250.00 $2,500
12"Steel lettering 3/8"thk.12 EA 1,000.00 $12,000
Lettering tube pipe support, Allowance 1 LS 3,000.00 $3,000
Fragment wall at Timeline plaza
Dry stack rubble stone masonary wall 584 SF 18.00 $10,512
Column Footing, assembly 4 CY 629.96 $2,457
Compacted subgrade 219 SF 0.73 $160
12"Steel lettering 3/8"thk.70 EA 1,000.00 $70,000
Lettering tube pipe support, Allowance 1 LS 10,000.00 $10,000
Park Safety, Regulatory & Directional Signs 45 EA 680.00 $30,600
Bench (With Back & Center Armrest)2 EA 1,500.00 $3,000
Composite Bench 4 EA 2,500.00 $10,000
Swing Bench (At Shuttle Stop Overlook Mound)1 EA 3,000.00 $3,000
Swing Bench footing, assembly 0.14 CY 629.96 $88
Picnic Tables including ADA 10 EA 2,800.00 $28,000
Litter Receptacles 14 EA 2,000.00 $28,000
Bike Racks 11 EA 500.00 $5,500
Dog Waste Bag Stations 3 EA 750.00 $2,250
Seatwalls & Freestanding Walls
Seat wall 18" special 27 LF 200.00 $5,400
Continuous footings 2.70 CY 778.90 $2,103
Seat wall 18" with one side graphic standard 134 LF 210.00 $28,140
Continuous footings 16 CY 778.90 $12,462
Seat wall 24" with one side graphic 73 LF 250.00 $18,250
Continuous footings 9 CY 778.90 $7,010
Boulder seating 32 LF 250.00 $8,000
Wildlife Blind 408 SF 65.00 $26,520
Approximately 6'x35' laser cut galvanized steel screen)
Continuous footings 9 CY 778.90 $7,010
Prepared by: OCMI Sheet 30 of 76
Page 441 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
INTERPRETIVE / SIGNS / SITE FURNISHINGS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Fences and gates
Growing ground fencing, with windscreen 195 LF 85.00 $16,575
Fence Footing, assembly 2.1 CY 629.96 $1,323
Growing ground gate, double 6'wide 1 EA 1,221.28 $1,221
Environmental Buffer fencing 2,318 LF 87.40 $202,593
Fence Footing, assembly 20 CY 629.96 $12,599
Environmental Fence 3' Gate with vinyl coating 3 EA 937.50 $2,812
Mitigation Area fencing, 4x4 square pressure treated posts 5,895 LF 15.41 $90,842
Wood Posts At 6' O.C. With Stainless Steel Cable)
Playground planting fencing, 4x4 squ. Press. treated posts 1,056 LF 15.00 $15,840
rope and post )
Meadow Arrival Plaza Shade Shelters 775 SF 160.00 $124,000
Footing, assembly 17 CY 629.96 $10,709
Picnic Shade Shelters 2 EA 40,000.00 $80,000
Footing, assembly 11.6 CY 629.96 $7,308
Safety Bollard 3 EA 685.56 $2,057
Interpretive Sign Bollard - 6x6 wood post with
5"x5" colored signage on (4) sides 10 EA 785.18 $7,852
Solar plinth 4 EA 3,200.00 $12,800
Solar plinth footings 3 CY 629.96 $1,890
TOTAL - 32 EXTERIOR IMPROVEMENTS $1,066,524
Prepared by: OCMI Sheet 31 of 76
Page 442 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
PLAYGROUND AREAS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT $591,986
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS
33 UTILITIES
NET DIRECT SITE COST $591,986
DESIGN CONTINGENCY 2.50%$14,800
SUBTOTAL $606,786
ESCALATION TO START 09/2022 4.31%$26,152
SUBTOTAL $632,938
GENERAL CONDITIONS/REQUIREMENTS 5.00%$31,647
SUBTOTAL $664,585
CONTRACTOR OVERHEAD AND PROFIT 15.00%$99,688
SUBTOTAL $764,273
INSURANCE 1.00%$7,643
SUBTOTAL $771,915
BONDS: CONTRACTOR 1.00%$7,719
TOTAL SITE COST $779,635
SITE SUMMARY
Prepared by: OCMI Sheet 32 of 76
Page 443 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
PLAYGROUND AREAS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
11 EQUIPMENT
Nature Playground
Playbooster 2-5 yrs
Ramp Deck Extension DB, 16"Dk 2 EA 805.00 $1,610
Mushroom Stepper 40"Deck 1 EA 5,490.00 $5,490
w/2 Recycled Wood-Grain Handholds
Kick Plate 8"Rise 1 EA 130.00 $130
Square Deck Extension 1 EA 1,085.00 $1,085
Square Tenderdeck 1 EA 1,135.00 $1,135
Tree Stump Transfer Module, 2-5yrs 48"Dk (DB Only)1 EA 8,115.00 $8,115
Triangular Tenderdeck 1 EA 875.00 $875
DigiFuse Barrier Panel, Above Dec 1 EA 1,435.00 $1,435
Marble Panel Above Deck 1 EA 2,590.00 $2,590
Recycled Wood-Grain Lumber Panel 1 EA 1,365.00 $1,365
Storefront Panel 1 EA 690.00 $690
116"Alum Post DB 3 EA 340.00 $1,020
124"Alum Post DB 3 EA 395.00 $1,185
233"Steel Post,For CoolTopper Single Post Pyramid Roof 1 EA 1,015.00 $1,015
84"Alum Post DB 4 EA 300.00 $1,200
CoolToppers Single Post Pyramid Roof DB Only 1 EA 3,650.00 $3,650
Double Slide 40"Dk DB 2 EA 2,280.00 $4,560
Rollerslide 56"Dk DB 1 EA 10,495.00 $10,495
Single Slide 48"Dk DB 1 EA 1,730.00 $1,730
Freestanding play 2-5 yrs
Set of 30 TRI-HANDHOLD HANDGRIPS 1 EA 1,900.00 $1,900
Upcharge CUSTOM DIGIFUSE® PANEL 1 EA 615.00 $615
OmniSpin Spinner Surface Mount1 1 EA 9,040.00 $9,040
We-saw DB Only1 1 EA 11,730.00 $11,730
Cozy Dome DB 1 EA 4,895.00 $4,895
Log Crawl Tunnel DB Only1 1 EA 7,020.00 $7,020
Welcome Sign (LSI Provided) Ages 2-5 years Direct Bury NIC
Playbooster 5-12 yrs
Clatterbridge 123 w/Barriers 1 EA 7,450.00 $7,450
SwiggleKnots Bridge, w/o Deck Connections DB Only 1 EA 6,775.00 $6,775
The Ascent Rock1 1 EA 6,740.00 $6,740
The Bend Rock1 1 EA 8,840.00 $8,840
The Den Rock1 1 EA 8,840.00 $8,840
GeoPlex Climber 72"Dk 1 EA 1,795.00 $1,795
GeoPlex Ground-To-Deck Double Climber 72"Dk Alum DB 1 EA 4,435.00 $4,435
Deck Link w/Barriers Steel end panels 2 Steps 2 EA 4,530.00 $9,060
DTR PB 7-Post Netplex w/RPL Wood-Grain Accent Panels 1 EA 15,125.00 $15,125
Hexagon Tenderdeck 1 EA 3,245.00 $3,245
Square Tenderdeck 2 EA 1,135.00 $2,270
Tree Stump Transfer Module 48"Dk (DB Only)1 EA 8,115.00 $8,115
Triangular Tenderdeck 1 EA 875.00 $875
DigiFuse Barrier Panel w/Medallions Above Deck 1 EA 2,115.00 $2,115
Animal Tracks Medallion Set
Prepared by: OCMI Sheet 33 of 76
Page 444 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
PLAYGROUND AREAS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
DigiFuse Barrier Panel Above Deck 1 EA 1,435.00 $1,435
Custom Artwork/Requires CP
Disc Net Climber for 7-Post Mainstructure 1 EA 24,800.00 $24,800
Blender Spinner DB1 1 EA 2,760.00 $2,760
E-Pod Seat 1 EA 340.00 $340
132"Alum Post DB 5 EA 410.00 $2,050
148"Alum Post DB 4 EA 435.00 $1,740
148"Steel Post DB 7 EA 395.00 $2,765
265"Steel Post ,For CoolTopper Single Post Pyramid Roof 2 EA 1,090.00 $2,180
CoolToppers Single Post Pyramid Roof DB Only1 2 EA 3,650.00 $7,300
Alpine Slide 72" Deck DB1 1 EA 4,260.00 $4,260
Freestanding play 5-12 yrs
Log Stepper 8"Height DB Only 1 EA 785.00 $785
DTR IND Recycled Board Oak Leaf Wobble Pod DB 1 EA 3,685.00 $3,685
Upcharge CUSTOM DIGIFUSE® PANEL ART 1 EA 615.00 $615
Welcome Sign (LSI Provided) Ages 5-12 years Direct Bury NIC
Oodle Swing DB Only1 1 EA 6,055.00 $6,055
Boulders
Playground Boulder 1'9 EA 85.00 $765
Playground Boulder 2'9 EA 100.00 $900
Adventure Playground (Logs, boulders, ropes and nets)
Log pile 4.1 1 EA 20,150.00 $20,150
Log pile 3.2 1 EA 22,100.00 $22,100
Fossil dig 3 EA 3,369.00 $10,107
Robinia sand desk 1 EA 5,170.00 $5,170
Log stepper
150 - 6" tall 10 EA 1,400.00 $14,000
300 - 12" tall 14 EA 1,550.00 $21,700
450 - 18" tall 13 EA 1,700.00 $22,100
600 - 24" tall 3 EA 1,900.00 $5,700
Boulders
Playground Boulder 4'1 EA 325.00 $325
Playground Boulder 3'6 EA 200.00 $1,200
Playground Boulder 2'8 EA 100.00 $800
Standard swing set 1 EA 7,750.00 $7,750
Shell seat swing 1 EA 6,340.00 $6,340
Supernova 1 EA 7,827.82 $7,828
Zip line (sloped)1 EA 16,696.68 $16,697
Shipping 1 LS 59,198.55 $59,199
Installation 1 LS 138,129.95 $138,130
TOTAL - 11 EQUIPMENT $591,986
Prepared by: OCMI Sheet 34 of 76
Page 445 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
LANDSCAPE IRRIGATION
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS $1,277,439
33 UTILITIES
NET DIRECT SITE COST $1,277,439
DESIGN CONTINGENCY 2.50%$31,936
SUBTOTAL $1,309,375
ESCALATION TO START 09/2022 4.31%$56,434
SUBTOTAL $1,365,809
GENERAL CONDITIONS/REQUIREMENTS 5.00%$68,290
SUBTOTAL $1,434,099
CONTRACTOR OVERHEAD AND PROFIT 15.00%$215,115
SUBTOTAL $1,649,214
INSURANCE 1.00%$16,492
SUBTOTAL $1,665,707
BONDS: CONTRACTOR 1.00%$16,657
TOTAL SITE COST $1,682,364
SITE SUMMARY
Prepared by: OCMI Sheet 35 of 76
Page 446 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
LANDSCAPE IRRIGATION
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Irrigation
Mainline Pipe and fittings, PVC C900, including
3"2,917 LF 31.42 $91,642
2-1/2"3,321 LF 28.27 $93,897
2"935 LF 20.62 $19,279
1-1/2"1,026 LF 18.83 $19,320
Irrigation Wiring 12,000 LF 0.80 $9,600
Irrigation Sleeving 381 LF 2.00 $762
Irrigation Conduit 12,000 LF 9.35 $112,200
Remote Control Valves 185 EA 30.00 $5,550
Drip Remote Control Valves 6 EA 30.00 $180
Quick Couplers 59 EA 35.00 $2,065
POC Equipment
2" Reduced Pressure Backflow Preventer 1 EA 2,040.00 $2,040
2" Master Valve 1 EA 561.67 $562
2" Flow Meter 1 EA 920.00 $920
Isolation Valves At Manifolds 65 EA 85.00 $5,525
Isolation Valves At Mainline Branches 21 EA 195.00 $4,095
Relocate existing controller & pedestal assembly 1 EA 11,000.00 $11,000
add Controller within the pedestal
New Controller 1 EA 12,000.00 $12,000
Permanent Irrigation 208,505 SF 1.00 $208,505
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream Head)
Permanent Irrigation 176,970 SF 0.85 $150,425
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream pop up)
Landscape Mitigation Area Irrigation 323,165 SF 0.75 $242,374
Above Grade UV Resistant Pipe & Gear Driven Rotor Heads)
Landscape Mitigation Area Irrigation 35,688 SF 0.75 $26,766
Above Grade UV Resistant Pipe & Rotar pop Heads)
Landscape Mitigation Area Irrigation 76,800 SF 0.60 $46,080
Above Grade UV Resistant Pipe & Rotory stream Heads on fix riser)
Landscape Mitigation Area Irrigation 19,645 SF 0.75 $14,734
Above Grade UV Resistant Pipe & Rotory stream Heads )
Sub-Surface Drip Irrigation 17,306 SF 3.00 $51,918
Sub-Surface In-Line Drip Emitter Tubing)
Tree Irrigation (2 Bubblers Per Tree)584 EA 250.00 $146,000
TOTAL - 32 EXTERIOR IMPROVEMENTS $1,277,439
Prepared by: OCMI Sheet 36 of 76
Page 447 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
LANDSCAPE PLANTING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS $2,388,057
33 UTILITIES
NET DIRECT SITE COST $2,388,057
DESIGN CONTINGENCY 2.50%$59,701
SUBTOTAL $2,447,758
ESCALATION TO START 09/2022 4.31%$105,498
SUBTOTAL $2,553,257
GENERAL CONDITIONS/REQUIREMENTS 5.00%$127,663
SUBTOTAL $2,680,920
CONTRACTOR OVERHEAD AND PROFIT 15.00%$402,138
SUBTOTAL $3,083,058
INSURANCE 1.00%$30,831
SUBTOTAL $3,113,888
BONDS: CONTRACTOR 1.00%$31,139
TOTAL SITE COST $3,145,027
SITE SUMMARY
Prepared by: OCMI Sheet 37 of 76
Page 448 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
LANDSCAPE PLANTING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Softscape
Trees
15 Gal 106 EA 160.00 $16,960
24" box 186 EA 600.00 $111,600
Shrubs
Diegan Coastal Sage Scrub - Non-Compensatory, 1 Gal 9,136 EA 12.00 $109,632
Diegan Coastal Sage Scrub - Non-Compensatory, 5 Gal 158 EA 29.00 $4,582
Diegan Coastal Sage Scrub - Mitigation Area, 1 Gal 11,015 EA 12.00 $132,180
Diegan Coastal Sage Scrub - Mitigation Area, 5 Gal 190 EA 29.00 $5,510
Disturbed Diegan Coastal Sage Scrub, 1 Gal 4,578 EA 12.00 $54,936
Disturbed Diegan Coastal Sage Scrub, 5 Gal 79 EA 29.00 $2,291
Dune Landscape, 4"pot 108 EA 7.00 $756
Dune Landscape, 1 Gal 1,479 EA 12.00 $17,748
Maritime Succulent Scrub, 1 Gal 47,825 EA 12.00 $573,900
Maritime Succulent Scrub - Non-Compensatory, 1 Gal 13,628 EA 10.00 $136,280
Native Meadow, 6" Pot 9,141 EA 10.00 $91,410
Native Meadow, 1 Gal 4,039 EA 12.00 $48,468
Native Grassland, 6" Pot 9,055 EA 10.00 $90,550
Native Grassland, 1 Gal 1,974 EA 12.00 $23,688
Basin & Swale Landscape, 6" Pot 589 EA 10.00 $5,890
Basin & Swale Landscape, 1 Gal 1,937 EA 12.00 $23,244
Riparian Landscape, 6"Pot 1,660 EA 10.00 $16,600
Riparian Landscape, 1 Gal 4,364 EA 12.00 $52,368
Riperian Landscape, 15 Gal 10 EA 160.00 $1,600
Mule Fat Scrub, 1 Gal 2,340 EA 12.00 $28,080
Specialty Gardens & Ornamental Park Landscape, 6" Pot 2,186 EA 10.00 $21,860
Specialty Gardens & Ornamental Park Landscape, 1 Gal 17,291 EA 12.00 $207,492
Specialty Gardens & Ornamental Park Landscape, 5 Gal 92 EA 29.00 $2,668
Mulches
Gravel bed, 3" pea gravel over weed blocking fabric 164 CY 102.26 $16,770
Bark Mulch 3" depth 571 CY 85.50 $48,821
Cobble 3" depth, 1"-3" Mexican Beach Pebble,at solar calender plaza
over weed blocking fabric 0.50 CY 95.00 $48
Decorative Cobble 3" depth, 6"-9" Mexican Beach Pebble,
over weed blocking fabric 8.80 CY 105.00 $924
Landscape Cobble 3" depth, mix: 20% 6"-9",40% 1"-3",
40% 3/4"-1" Mexican Beach Pebble over weed blocking fabric
6-9" Cobble 35 CY 105.00 $3,675
1-3" Cobble 69 CY 95.00 $6,555
3/4"-1" Cobble 69 CY 75.00 $5,175
Boulders
4'x4'x4' Landscape Boulder 15 EA 325.00 $4,875
3'x3'x3' Landscape Boulder 196 EA 200.00 $39,200
2'x2'x2' Landscape Boulder 172 EA 100.00 $17,200
1'x1'x1' Landscape Boulder 28 EA 85.00 $2,380
Prepared by: OCMI Sheet 38 of 76
Page 449 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
LANDSCAPE PLANTING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Miscellaneous
Root Barrier - 24" UB 24-2 by DeepRoot 2,573 LF 6.00 $15,438
Maintenance of landscape 180 days
Specialty and ornamental Landscape 103,366 SF 0.15 $15,505
Non-Mitigation Park Landscape 416,520 SF 0.15 $62,478
Park Mitigation Areas 376,934 SF 0.15 $56,540
5-Year Maintenance & Establishment Period
Mitigation Areas 376,934 SF 0.30 $113,080
Soil tilling 250,000 SF 0.48 $119,100
Soil Leaching (to reduce soil salinity)250,000 SF 0.16 $40,000
Grow-Kill Cycles 250,000 SF 0.16 $40,000
3 Cycles of irrigation and subsequent weed-kill/removal)
TOTAL - 32 EXTERIOR IMPROVEMENTS $2,388,057
Prepared by: OCMI Sheet 39 of 76
Page 450 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MAIN PARKING LOT
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($734,779)
33 UTILITIES ($103,489)
NET DIRECT SITE COST ($838,268)
DESIGN CONTINGENCY 2.50%($20,957)
SUBTOTAL ($859,225)
ESCALATION TO START 09/2022 4.31%($37,033)
SUBTOTAL ($896,257)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($44,813)
SUBTOTAL ($941,070)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($141,161)
SUBTOTAL ($1,082,231)
INSURANCE 1.00%($10,822)
SUBTOTAL ($1,093,053)
BONDS: CONTRACTOR 1.00%($10,931)
TOTAL SITE COST ($1,103,984)
SITE SUMMARY
Prepared by: OCMI Sheet 40 of 76
Page 451 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MAIN PARKING LOT
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Pedestrian Concrete paving, 4" nat gray (803)SF 6.10 ($4,899)
Scarify & Compact Top 6"(803)SF 0.73 ($586)
Vehicular Concrete paving, 7.5" nat gray (775)SF 9.03 ($7,000)
Scarify & Compact Top 6"(775)SF 0.73 ($566)
Dune Concrete paving, 7.5" vehicular, light blue (131)SF 22.03 ($2,886)
Scarify & Compact Top 6"(131)SF 0.73 ($96)
Construction joints (398)LF 1.04 ($414)
Expansion joints (130)LF 0.81 ($105)
Asphaltic concrete paving, 3" heavy duty (20,258)SF 2.22 ($44,973)
Base, 8.5"(20,258)SF 3.66 ($74,144)
Scarify & Compact Top 12"(20,258)SF 0.73 ($14,788)
Asphaltic concrete paving, 4" heavy duty (18,259)SF 5.00 ($91,295)
Recycled base 13.5"(18,259)SF 5.02 ($91,660)
Scarify & Compact Top 12"(18,259)SF 0.73 ($13,329)
Curb (2,956)LF 16.36 ($48,366)
Curb ramp concrete (390)SF 12.25 ($4,779)
Cross gutter (75)LF 29.47 ($2,210)
Concrete mow strip (132)LF 9.20 ($1,214)
Driveway Apron (180)SF 8.10 ($1,458)
Paving specialties
Striped parking stall (76)EA 18.73 ($1,424)
ADA symbol, painted (8)EA 100.48 ($804)
Pole mounted sign (8)EA 312.74 ($2,502)
Cross hatching (373)SF 1.21 ($451)
Truncated dome, plastic (176)SF 29.49 ($5,190)
Wheel Stops, concrete (8)EA 85.65 ($685)
Miscellaneous
Stabilized Decomposed Granite, 6"(32,151)SF 5.42 ($174,258)
over aggregate base, 9-1/2"
Scarify & compact soil base top 12", 95% compacted (32,151)SF 0.73 ($23,470)
Trash enclosure
Concrete paving slab top cast finish 7.5"thick (116)SF 12.94 ($1,500)
Sub-base course 4"(2)CY 85.84 ($184)
Scarify & Compact Top 6"(116)SF 0.73 ($85)
Concrete curb (25)LF 17.87 ($447)
Thickened edge (1)CY 279.50 ($280)
Structural steel (1)TON 5,206.18 ($5,206)
Metal gate, double 18'wide (1)PR 3,003.52 ($3,004)
CMU, split faced filled and reinforced 8"(249)SF 74.61 ($18,579)
Continuous footings (5)CY 778.90 ($3,895)
Spread footing, assembly (1)CY 638.55 ($639)
Corrugated metal roof (183)SF 17.07 ($3,124)
Concrete filled, steel bollard (low)(2)EA 785.18 ($1,570)
Prepared by: OCMI Sheet 41 of 76
Page 452 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MAIN PARKING LOT
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Softscape
Trees
24" box (31)EA 600.00 ($18,600)
Specialty Gardens & Ornamental Park Landscape, 6" Pot (143)EA 10.00 ($1,430)
Specialty Gardens & Ornamental Park Landscape, 1 Gal (319)EA 12.00 ($3,828)
Miscellaneous
Gravel bed, 3" pea gravel over weed blocking fabric (69)CY 102.26 ($7,056)
Root Barrier - 24" UB 24-2 by DeepRoot (1,295)LF 6.00 ($7,770)
Irrigation
Sub-Surface Drip Irrigation (7,407)SF 3.00 ($22,221)
Sub-Surface In-Line Drip Emitter Tubing)
Tree Irrigation (2 Bubblers Per Tree)(62)EA 250.00 ($15,500)
Furnishings
Safety Bollard (2)EA 685.56 ($1,371)
Litter Receptacles (2)EA 2,000.00 ($4,000)
Parking rules and regulation Pole mounted sign (3)EA 312.74 ($938)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($734,779)
33 UTILITIES
Lighting
Lighting Fixtures, exterior LED, pole mounted
Ouro Arm Mount (Double)(3)EA 2,850.00 ($8,550)
Ouro Arm Mount (Single)(6)EA 2,660.00 ($15,960)
Ouro Post Top (1)EA 2,996.00 ($2,996)
Conduit & Wire (700)LF 16.00 ($11,200)
Pull Boxes (1)EA 1,663.20 ($1,663)
Future EV charging station
Equipment, by others NIC
Electrical utility trench, including excavation,(550)LF 75.00 ($41,250)
backfill and patch back
Ductbank
Conduits, PVC 1"(1,000)LF 21.87 ($21,870)
TOTAL - 33 UTILITIES ($103,489)
Prepared by: OCMI Sheet 42 of 76
Page 453 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
DG LOTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($251,596)
33 UTILITIES ($17,255)
NET DIRECT SITE COST ($268,851)
DESIGN CONTINGENCY 2.50%($6,721)
SUBTOTAL ($275,572)
ESCALATION TO START 09/2022 4.31%($11,877)
SUBTOTAL ($287,449)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($14,372)
SUBTOTAL ($301,822)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($45,273)
SUBTOTAL ($347,095)
INSURANCE 1.00%($3,471)
SUBTOTAL ($350,566)
BONDS: CONTRACTOR 1.00%($3,506)
TOTAL SITE COST ($354,072)
SITE SUMMARY
Prepared by: OCMI Sheet 43 of 76
Page 454 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
DG LOTS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Ancillary Decomposed Granite Parking Lots (2)
Hardscape
Pedestrian Concrete paving, 4" nat gray (1,365)SF 6.10 ($8,327)
Base, 6"(1,365)SF 2.51 ($3,426)
Scarify & Compact Top 6"(1,365)SF 0.73 ($996)
Ramp, premium (450)SF 12.25 ($5,514)
Vehicular Concrete paving, 7.5" nat gray (843)SF 9.03 ($7,614)
Base,8.5"(843)SF 3.66 ($3,085)
Scarify & Compact Top 6"(843)SF 0.73 ($615)
Curb (967)LF 16.36 ($15,822)
Construction joints (306)LF 1.04 ($318)
Expansion joints (97)LF 0.81 ($79)
Paving specialties
Stop/Yield Sign (1)EA 322.74 ($323)
Striped parking stall (4)EA 18.73 ($75)
ADA symbol, painted (4)EA 100.48 ($402)
Pole mounted sign (4)EA 312.74 ($1,251)
Cross hatching (178)SF 1.21 ($215)
Truncated dome, plastic (54)SF 29.49 ($1,592)
Miscellaneous
Stabilized Decomposed Granite, 6"(28,059)SF 5.42 ($152,080)
over aggregate base, 9-1/2"
Scarify & compact soil base top 12", 95% compacted (28,059)SF 0.73 ($20,483)
Stabilized Decomposed Granite, 4"(5,596)SF 4.52 ($25,294)
Scarify & compact soil base top 12", (5,596)SF 0.73 ($4,085)
moisture-conditioned 90%
TOTAL - 32 EXTERIOR IMPROVEMENTS ($251,596)
33 UTILITIES
Lighting
Lighting Fixtures, exterior LED, pole mounted
Ouro Post Top (2)EA 2,996.00 ($5,992)
Conduit & Wire (600)LF 16.00 ($9,600)
Pull Boxes (1)EA 1,663.20 ($1,663)
TOTAL - 33 UTILITIES ($17,255)
Prepared by: OCMI Sheet 44 of 76
Page 455 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
KUMEYAAY TOOL MAKING PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($24,759)
33 UTILITIES
NET DIRECT SITE COST ($24,759)
DESIGN CONTINGENCY 2.50%($619)
SUBTOTAL ($25,378)
ESCALATION TO START 09/2022 4.31%($1,094)
SUBTOTAL ($26,472)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($1,324)
SUBTOTAL ($27,795)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($4,169)
SUBTOTAL ($31,965)
INSURANCE 1.00%($320)
SUBTOTAL ($32,284)
BONDS: CONTRACTOR 1.00%($323)
TOTAL SITE COST ($32,607)
SITE SUMMARY
Prepared by: OCMI Sheet 45 of 76
Page 456 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
KUMEYAAY TOOL MAKING PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Pedestrian Concrete paving, 4" nat gray (1,165)SF 6.10 ($7,107)
Scarify & Compact Top 6"(1,165)SF 0.73 ($850)
Construction joints (235)LF 1.04 ($244)
Expansion joints (111)LF 0.81 ($90)
Seat walls & Freestanding Walls
Seat wall 18" with one side graphic standard (25)LF 210.00 ($5,250)
Continuous footings (3)CY 778.90 ($2,415)
Interpretive Signs & Elements (1)EA 4,020.00 ($4,020)
Sign Footing, assembly (0.42)CY 639.96 ($269)
Softscape
Trees
15 Gal (1)EA 160.00 ($160)
Shrubs
Ornamental Park Landscape, 1 Gal (24)EA 12.00 ($288)
Permanent Irrigation (219)SF 0.85 ($186)
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream pop up)
Tree Irrigation (2 Bubblers Per Tree)(2)EA 250.00 ($500)
Boulders
3'x3'x3' Landscape Boulder (9)EA 200.00 ($1,800)
2'x2'x2' Landscape Boulder (9)EA 100.00 ($900)
1'x1'x1' Landscape Boulder (8)EA 85.00 ($680)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($24,759)
Prepared by: OCMI Sheet 46 of 76
Page 457 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUNDS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE ($68,121)
04 MASONRY
05 METALS ($64,465)
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION ($27,725)
08 OPENINGS ($12,840)
09 FINISHES ($4,210)
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL ($16,735)
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($43,763)
33 UTILITIES
NET DIRECT BUILDING COST ($237,859)
DESIGN CONTINGENCY 2.50%($5,946)
SUBTOTAL ($243,805)
ESCALATION TO START 09/2022 4.31%($10,508)
SUBTOTAL ($254,313)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($12,716)
SUBTOTAL ($267,029)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($40,054)
SUBTOTAL ($307,084)
INSURANCE 1.00%($3,071)
SUBTOTAL ($310,154)
BONDS: CONTRACTOR 1.00%($3,102)
TOTAL BUILDING COST ($313,256)
BUILDING SUMMARY
Prepared by: OCMI Sheet 47 of 76
Page 458 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUNDS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
03 CONCRETE
Steel post pier footing (4)CY 629.96 ($2,520)
Matt footing, assembly (26)CY 638.55 ($16,602)
Slab on grade
Reinforced concrete slab, 4" thick (534)SF 10.43 ($5,571)
Sand base course (3)CY 63.65 ($191)
Concrete retaining wall, reinforced (853)SF 50.69 ($43,237)
TOTAL - 03 CONCRETE ($68,121)
05 METALS
Structural steel (2)TON 5,206.18 ($10,412)
Galvanized premium, Allowance (1)TON 895.58 ($896)
Exposed steel finish, premium (1)TON 488.77 ($489)
Roof
Metal deck
1-1/2"(630)SF 3.33 ($2,097)
Woven wiremesh panels (228)SF 68.29 ($15,571)
Parasoleil screen panel system (250)SF 140.00 ($35,000)
TOTAL - 05 METALS ($64,465)
07 THERMAL AND MOISTURE PROTECTION
Roofing
Corrugated metal steel (630)SF 11.10 ($6,991)
Fascia (150)LF 14.33 ($2,149)
Growing Grounds Shade Shelter (413)SF 45.00 ($18,585)
TOTAL - 07 THERMAL AND MOISTURE PROTECTION ($27,725)
08 OPENINGS
Exterior doors
Hollow metal including frame and hardware
Single (2)EA 2,091.13 ($4,182)
Roll-up door
10' 0" x 8' 0" high (2)EA 3,061.32 ($6,123)
Miscellaneous
Closer (2)EA 389.20 ($778)
Prepared by: OCMI Sheet 48 of 76
Page 459 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUNDS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Panic hardware (2)EA 878.68 ($1,757)
TOTAL - 08 OPENINGS ($12,840)
09 FINISHES
Wall
Concrete, sealer (1,706)SF 1.58 ($2,700)
Floor
Concrete, sealer (540)SF 1.58 ($855)
Ceiling
Paint (540)SF 1.21 ($655)
TOTAL - 09 FINISHES ($4,210)
26 ELECTRICAL
Service and distribution, Growing Ground Maintenance Equipment shade
Normal power
Panel board (1)EA 3,400.00 ($3,400)
Building feeder (1)LS 500.00 ($500)
Building grounding system (1)LS 500.00 ($500)
Lighting system
Lighting control (1)LS 500.00 ($500)
Fixtures, LED Industrial strip (3)EA 550.00 ($1,650)
Junction box (1)EA 46.17 ($46)
Light switch, Three way (2)EA 92.61 ($185)
Occupancy sensor (1)EA 197.22 ($197)
Conduit and wire (315)LF 9.61 ($3,027)
Convenience power
Receptacles
Duplex (3)EA 103.87 ($312)
Special receptacle (5)EA 337.39 ($1,687)
Junction box (1)EA 46.17 ($46)
Conduit and wire (450)LF 9.61 ($4,325)
Miscellaneous including seismic bracing,
identification and fire stop (600)SF 0.60 ($360)
TOTAL - 26 ELECTRICAL ($16,735)
32 EXTERIOR IMPROVEMENTS
Prepared by: OCMI Sheet 49 of 76
Page 460 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROWING GROUNDS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Hardscape
Vehicular Concrete paving, 7.5" nat gray (636)SF 9.03 ($5,744)
Scarify & Compact Top 6"(636)SF 0.73 ($464)
Construction joints (86)LF 1.04 ($89)
Expansion joints (43)LF 0.81 ($35)
Stabilized Decomposed Granite, 4"(3,488)SF 4.52 ($15,766)
Scarify & compact soil base top 12", (3,488)SF 0.73 ($2,546)
Fences and gates
Growing ground fencing, with windscreen (195)LF 85.00 ($16,575)
Fence Footing, assembly (2.1)CY 629.96 ($1,323)
Growing ground gate, double (1)EA 1,221.28 ($1,221)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($43,763)
Prepared by: OCMI Sheet 50 of 76
Page 461 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROUP EDUCATION RING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($4,750)
33 UTILITIES ($7,796)
NET DIRECT SITE COST ($12,546)
DESIGN CONTINGENCY 2.50%($314)
SUBTOTAL ($12,860)
ESCALATION TO START 09/2022 4.31%($554)
SUBTOTAL ($13,414)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($671)
SUBTOTAL ($14,085)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($2,113)
SUBTOTAL ($16,197)
INSURANCE 1.00%($162)
SUBTOTAL ($16,359)
BONDS: CONTRACTOR 1.00%($164)
TOTAL SITE COST ($16,523)
SITE SUMMARY
Prepared by: OCMI Sheet 51 of 76
Page 462 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROUP EDUCATION RING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Dune Concrete paving, 4" pedestrian, integral color (1,706)SF 10.10 $50,721
Scarify & Compact Top 6"(1,706)SF 0.73 $3,665
Dune Concrete paving, 7.5" vehicular (273)SF 22.03 ($6,015)
Scarify & Compact Top 6"(273)SF 0.73 ($199)
Construction joints (284)LF 1.04 ($295)
Expansion joints (153)LF 0.81 ($124)
Miscellaneous
Stabilized Decomposed Granite, 4"(491)SF 4.52 ($2,219)
Scarify & compact soil base top 12", (491)SF 0.73 ($358)
moisture-conditioned 90%
Interpretive Signs & Elements (2)EA 4,020.00 ($8,040)
Sign Footing, assembly (0.83)CY 639.96 ($531)
Snake Warning Sign (1)EA 150.00 ($150)
Boulder seating (32)LF 250.00 ($8,000)
Boulders
3'x3'x3' Landscape Boulder (18)EA 200.00 ($3,600)
2'x2'x2' Landscape Boulder (15)EA 100.00 ($1,500)
1'x1'x1' Landscape Boulder (4)EA 85.00 ($340)
Stepping stone, P-38/LC18 (9)EA 700.00 ($6,300)
Softscape
Trees
24" box (2)EA 600.00 ($1,200)
15 Gal (7)EA 160.00 ($1,120)
Shrubs
Specialty Gardens & Ornamental Park Landscape, 1 Gal (480)EA 12.00 ($5,760)
Permanent Irrigation (1,640)SF 0.85 ($1,394)
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream pop up)
Sub-Surface Drip Irrigation (340)SF 3.00 ($1,020)
Sub-Surface In-Line Drip Emitter Tubing)
Tree Irrigation (2 Bubblers Per Tree)(18)EA 250.00 ($4,500)
Bark Mulch 3" depth (18)CY 85.50 ($1,539)
Root Barrier - 24" UB 24-2 by DeepRoot (82)LF 6.00 ($492)
Boulders
3'x3'x3' Landscape Boulder (18)EA 200.00 ($3,600)
2'x2'x2' Landscape Boulder (5)EA 100.00 ($500)
1'x1'x1' Landscape Boulder (4)EA 85.00 ($340)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($4,750)
33 UTILITIES
Lighting
Prepared by: OCMI Sheet 52 of 76
Page 463 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
GROUP EDUCATION RING
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Lighting Fixtures, exterior LED, pole mounted
Ouro Post Top (1)EA 2,996.00 ($2,996)
Conduit & Wire (300)LF 16.00 ($4,800)
TOTAL - 33 UTILITIES ($7,796)
Prepared by: OCMI Sheet 53 of 76
Page 464 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MEADOW ARRIVAL ENTRY PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($221,986)
33 UTILITIES
NET DIRECT SITE COST ($221,986)
DESIGN CONTINGENCY 2.50%($5,550)
SUBTOTAL ($227,536)
ESCALATION TO START 09/2022 4.31%($9,807)
SUBTOTAL ($237,342)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($11,867)
SUBTOTAL ($249,210)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($37,381)
SUBTOTAL ($286,591)
INSURANCE 1.00%($2,866)
SUBTOTAL ($289,457)
BONDS: CONTRACTOR 1.00%($2,895)
TOTAL SITE COST ($292,351)
SITE SUMMARY
Prepared by: OCMI Sheet 54 of 76
Page 465 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MEADOW ARRIVAL ENTRY PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Dune Concrete paving, 4" pedestrian, integral color (940)SF 10.10 ($9,496)
Scarify & Compact Top 6"(940)SF 0.73 ($686)
Kailua Concrete paving, 4", integral color (823)SF 18.10 ($14,897)
Scarify & Compact Top 6"(823)SF 0.73 ($601)
Concrete paving, 4", seeded aggregate (362)SF 9.62 ($3,482)
Scarify & Compact Top 6"(362)SF 0.73 ($264)
Construction joints (629)LF 1.04 ($654)
Expansion joints (429)LF 0.81 ($347)
Stabilized Decomposed Granite, 4"(95)SF 4.52 ($429)
Scarify & compact soil base top 12", (95)SF 0.73 ($69)
moisture-conditioned 90%
Seat walls & Freestanding Walls
Seat wall 24" with one side graphic (73)LF 250.00 ($18,250)
Continuous footings (9)CY 778.90 ($7,010)
Meadow Arrival Plaza Shade Shelters (775)SF 160.00 ($124,000)
Footing, assembly (17)CY 629.96 ($10,709)
Boulders
3'x3'x3' Landscape Boulder (22)EA 200.00 ($4,400)
2'x2'x2' Landscape Boulder (24)EA 100.00 ($2,400)
1'x1'x1' Landscape Boulder (2)EA 85.00 ($170)
Primary regulatory sign (1)EA 312.74 ($313)
Interpretive Signs & Elements (1)EA 4,020.00 ($4,020)
Sign Footing, assembly (0.42)CY 639.96 ($269)
Litter Receptacles (2)EA 2,000.00 ($4,000)
Softscape
Trees
15 Gal (2)EA 160.00 ($320)
24" box (2)EA 600.00 ($1,200)
Shrubs
Specialty Gardens & Ornamental Park Landscape, 1 Gal (190)EA 12.00 ($2,280)
Sub-Surface Drip Irrigation (416)SF 3.00 ($1,248)
Sub-Surface In-Line Drip Emitter Tubing)
Tree Irrigation (2 Bubblers Per Tree)(8)EA 250.00 ($2,000)
Miscellaneous
Bark Mulch 3" depth (4)CY 85.50 ($342)
Root Barrier - 24" UB 24-2 by DeepRoot (160)LF 6.00 ($960)
Boulders
3'x3'x3' Landscape Boulder (23)EA 200.00 ($4,600)
2'x2'x2' Landscape Boulder (24)EA 100.00 ($2,400)
1'x1'x1' Landscape Boulder (2)EA 85.00 ($170)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($221,986)
Prepared by: OCMI Sheet 55 of 76
Page 466 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
TIMELINE PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($205,743)
33 UTILITIES
NET DIRECT SITE COST ($205,743)
DESIGN CONTINGENCY 2.50%($5,144)
SUBTOTAL ($210,887)
ESCALATION TO START 09/2022 4.31%($9,089)
SUBTOTAL ($219,976)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($10,999)
SUBTOTAL ($230,975)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($34,646)
SUBTOTAL ($265,621)
INSURANCE 1.00%($2,656)
SUBTOTAL ($268,277)
BONDS: CONTRACTOR 1.00%($2,683)
TOTAL SITE COST ($270,960)
SITE SUMMARY
Prepared by: OCMI Sheet 56 of 76
Page 467 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
TIMELINE PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Kailua Concrete paving, 4", integral color (682)SF 18.10 ($12,345)
Scarify & Compact Top 6"(682)SF 0.73 ($498)
Dune Concrete paving, 4" pedestrian, integral color (1,246)SF 10.10 ($12,587)
Scarify & Compact Top 6"(1,246)SF 0.73 ($910)
Concrete paving, 4", seeded aggregate (619)SF 9.62 ($5,954)
Scarify & Compact Top 6"(619)SF 0.73 ($452)
Construction joints (479)LF 1.04 ($498)
Expansion joints (256)LF 0.81 ($207)
Medallion etched logo (10.6)SF 125.00 ($1,325)
Interpretive Signs & Elements (1)EA 4,020.00 ($4,020)
Sign Footing, assembly (0.60)CY 639.96 ($384)
P10 Park Trail Map Sign (1)EA 312.74 ($313)
R6 Bayshore Bikeway Loop Sign (1)EA 312.74 ($313)
Fragment wall at Timeline plaza
Dry stack rubble stone masonry wall (584)SF 18.00 ($10,512)
Column Footing, assembly (4)CY 629.96 ($2,520)
Compacted subgrade (219)SF 0.73 ($160)
12"Steel lettering 3/8"thk.(70)EA 1,000.00 ($70,000)
Lettering tube pipe support, Allowance (1)LS 10,000.00 ($10,000)
Softscape
Specialty Gardens & Ornamental Park Landscape, 6" Pot (5,641)EA 10.00 ($56,410)
Specialty Gardens & Ornamental Park Landscape, 1 Gal (189)EA 12.00 ($2,268)
Sub-Surface Drip Irrigation (4,689)SF 3.00 ($14,067)
Sub-Surface In-Line Drip Emitter Tubing)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($205,743)
Prepared by: OCMI Sheet 57 of 76
Page 468 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
SOLAR CALENDAR PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($77,904)
33 UTILITIES
NET DIRECT SITE COST ($77,904)
DESIGN CONTINGENCY 2.50%($1,948)
SUBTOTAL ($79,852)
ESCALATION TO START 09/2022 4.31%($3,442)
SUBTOTAL ($83,293)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($4,165)
SUBTOTAL ($87,458)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($13,119)
SUBTOTAL ($100,577)
INSURANCE 1.00%($1,006)
SUBTOTAL ($101,582)
BONDS: CONTRACTOR 1.00%($1,016)
TOTAL SITE COST ($102,598)
SITE SUMMARY
Prepared by: OCMI Sheet 58 of 76
Page 469 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
SOLAR CALENDAR PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Dune Concrete paving, 4",pedes., int. color as lithocrete (2,091)SF 20.10 ($42,030)
Scarify & Compact Top 6"(2,091)SF 0.73 ($1,526)
Kailua Concrete paving, 4", integral color as lithocrete (484)SF 18.10 ($8,761)
Scarify & Compact Top 6"(484)SF 0.73 ($353)
Construction joints (568)LF 1.04 ($591)
Expansion joints (154)LF 0.81 ($125)
Metal banding in concrete at Restroom (263)LF 9.76 ($2,567)
4" tall etched lettering in concrete (208)EA 50.00 ($10,400)
Seat walls & Freestanding Walls
Seat wall 18" special (27)LF 200.00 ($5,400)
Continuous footings (2.70)CY 778.90 ($2,103)
Miscellaneous
Cobble 3" depth, 1"-3" Mexican Beach Pebble,at solar calender plaza
over weed blocking fabric (0.50)CY 95.00 ($48)
Litter Receptacles (2)EA 2,000.00 ($4,000)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($77,904)
Prepared by: OCMI Sheet 59 of 76
Page 470 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MAP PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($43,302)
33 UTILITIES
NET DIRECT SITE COST ($43,302)
DESIGN CONTINGENCY 2.50%($1,083)
SUBTOTAL ($44,385)
ESCALATION TO START 09/2022 4.31%($1,913)
SUBTOTAL ($46,298)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($2,315)
SUBTOTAL ($48,612)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($7,292)
SUBTOTAL ($55,904)
INSURANCE 1.00%($559)
SUBTOTAL ($56,463)
BONDS: CONTRACTOR 1.00%($565)
TOTAL SITE COST ($57,028)
SITE SUMMARY
Prepared by: OCMI Sheet 60 of 76
Page 471 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
MAP PLAZA
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Dune Concrete paving, 4" pedestrian, integral color (707)SF 10.10 ($7,142)
Scarify & Compact Top 6"(707)SF 0.73 ($516)
Construction joints (238)LF 1.04 ($248)
Expansion joints (83)LF 0.81 ($67)
Bench (With Back & Center Armrest)(2)EA 1,500.00 ($3,000)
Map plaza lithochromatic chemstain (300)SF 6.00 ($1,800)
Map Plaza - bronze lettering (97)EA 75.00 ($7,275)
Solar plinth (4)EA 3,200.00 ($12,800)
Solar plinth footings (3)CY 629.96 ($1,890)
Interpretive Signs & Elements (1)EA 4,020.00 ($4,020)
Sign Footing, assembly (0.42)CY 639.96 ($269)
Boulders
4'x4'x4' Landscape Boulder (7)EA 325.00 ($2,275)
3'x3'x3' Landscape Boulder (10)EA 200.00 ($2,000)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($43,302)
Prepared by: OCMI Sheet 61 of 76
Page 472 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
NATURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($782,475)
33 UTILITIES
NET DIRECT SITE COST ($782,475)
DESIGN CONTINGENCY 2.50%($19,562)
SUBTOTAL ($802,037)
ESCALATION TO START 09/2022 4.31%($34,568)
SUBTOTAL ($836,605)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($41,830)
SUBTOTAL ($878,435)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($131,765)
SUBTOTAL ($1,010,200)
INSURANCE 1.00%($10,102)
SUBTOTAL ($1,020,302)
BONDS: CONTRACTOR 1.00%($10,203)
TOTAL SITE COST ($1,030,505)
SITE SUMMARY
Prepared by: OCMI Sheet 62 of 76
Page 473 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
NATURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Pedestrian Concrete paving, 4" nat gray (870)SF 6.10 ($5,307)
Scarify & Compact Top 6"(870)SF 0.73 ($635)
Construction joints (122)LF 1.04 ($127)
Expansion joints (52)LF 0.81 ($42)
Concrete Curb at Playground 12"(641)LF 30.87 ($19,788)
PIP Rubberized Surfacing with aliphatic binder (12,818)SF 13.02 ($166,890)
Over pedestrian thickness natural gray concrete (12,818)SF 6.18 ($79,246)
Base, 6"(12,818)SF 2.51 ($32,173)
Area Drains beneath PIP, slope PIP concrete (1)LS 6,000.00 ($6,000)
Thickened edge (3.33)CY 279.50 ($931)
Seat walls & Freestanding Walls
Seat wall 18" with one side graphic (70)LF 210.00 ($14,700)
Continuous footings (8.2)CY 778.90 ($6,387)
Interpretive Signs & Elements (1)EA 4,020.00 ($4,020)
Sign Footing, assembly (0.42)CY 639.96 ($269)
Playground Rules Sign (1)EA 312.74 ($313)
Fences and gates
Playground planting fencing (rope and post )(839)LF 15.00 ($12,585)
Softscape
Trees
24" box (6)EA 600.00 ($3,600)
15 Gal (3)EA 160.00 ($480)
Shrubs
Specialty Gardens & Ornamental Park Landscape, 6" Pot (162)EA 10.00 ($1,620)
Specialty Gardens & Ornamental Park Landscape, 1 Gal (159)EA 12.00 ($1,908)
Irrigation
Permanent Irrigation (1,119)SF 0.85 ($951)
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream pop up)
Sub-Surface Drip Irrigation (1,172)SF 3.00 ($3,516)
Sub-Surface In-Line Drip Emitter Tubing)
Tree Irrigation (2 Bubblers Per Tree)(18)EA 250.00 ($4,500)
Miscellaneous
Root Barrier - 24" UB 24-2 by DeepRoot (338)LF 6.00 ($2,028)
Nature Playground equipment
Playbooster 2-5 yrs
Ramp Deck Extension DB, 16"Dk (2)EA 805.00 ($1,610)
Mushroom Stepper 40"Deck (1)EA 5,490.00 ($5,490)
w/2 Recycled Wood-Grain Handholds
Kick Plate 8"Rise (1)EA 130.00 ($130)
Square Deck Extension (1)EA 1,085.00 ($1,085)
Square Tenderdeck (1)EA 1,135.00 ($1,135)
Prepared by: OCMI Sheet 63 of 76
Page 474 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
NATURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Tree Stump Transfer Module, 2-5yrs 48"Dk (DB Only)(1)EA 8,115.00 ($8,115)
Triangular Tenderdeck (1)EA 875.00 ($875)
DigiFuse Barrier Panel, Above Dec (1)EA 1,435.00 ($1,435)
Marble Panel Above Deck (1)EA 2,590.00 ($2,590)
Recycled Wood-Grain Lumber Panel (1)EA 1,365.00 ($1,365)
Storefront Panel (1)EA 690.00 ($690)
116"Alum Post DB (3)EA 340.00 ($1,020)
124"Alum Post DB (3)EA 395.00 ($1,185)
233"Steel Post,For CoolTopper Single Post Pyramid Roof (1)EA 1,015.00 ($1,015)
84"Alum Post DB (4)EA 300.00 ($1,200)
CoolToppers Single Post Pyramid Roof DB Only (1)EA 3,650.00 ($3,650)
Double Slide 40"Dk DB (2)EA 2,280.00 ($4,560)
Rollerslide 56"Dk DB (1)EA 10,495.00 ($10,495)
Single Slide 48"Dk DB (1)EA 1,730.00 ($1,730)
Freestanding play 2-5 yrs
Set of 30 TRI-HANDHOLD HANDGRIPS (1)EA 1,900.00 ($1,900)
Upcharge CUSTOM DIGIFUSE® PANEL (1)EA 615.00 ($615)
OmniSpin Spinner Surface Mount1 (1)EA 9,040.00 ($9,040)
We-saw DB Only1 (1)EA 11,730.00 ($11,730)
Cozy Dome DB (1)EA 4,895.00 ($4,895)
Log Crawl Tunnel DB Only1 (1)EA 7,020.00 ($7,020)
Welcome Sign (LSI Provided) Ages 2-5 years Direct Bury NIC
Playbooster 5-12 yrs
Clatterbridge 123 w/Barriers (1)EA 7,450.00 ($7,450)
SwiggleKnots Bridge, w/o Deck Connections DB Only (1)EA 6,775.00 ($6,775)
The Ascent Rock1 (1)EA 6,740.00 ($6,740)
The Bend Rock1 (1)EA 8,840.00 ($8,840)
The Den Rock1 (1)EA 8,840.00 ($8,840)
GeoPlex Climber 72"Dk (1)EA 1,795.00 ($1,795)
GeoPlex Ground-To-Deck Double Climber 72"Dk Alum DB (1)EA 4,435.00 ($4,435)
Deck Link w/Barriers Steel end panels 2 Steps (2)EA 4,530.00 ($9,060)
DTR PB 7-Post Netplex w/RPL Wood-Grain Accent Panels (1)EA 15,125.00 ($15,125)
Hexagon Tenderdeck (1)EA 3,245.00 ($3,245)
Square Tenderdeck (2)EA 1,135.00 ($2,270)
Tree Stump Transfer Module 48"Dk (DB Only)(1)EA 8,115.00 ($8,115)
Triangular Tenderdeck (1)EA 875.00 ($875)
DigiFuse Barrier Panel w/Medallions Above Deck (1)EA 2,115.00 ($2,115)
Animal Tracks Medallion Set
DigiFuse Barrier Panel Above Deck (1)EA 1,435.00 ($1,435)
Custom Artwork/Requires CP
Disc Net Climber for 7-Post Mainstructure (1)EA 24,800.00 ($24,800)
Blender Spinner DB1 (1)EA 2,760.00 ($2,760)
E-Pod Seat (1)EA 340.00 ($340)
132"Alum Post DB (5)EA 410.00 ($2,050)
148"Alum Post DB (4)EA 435.00 ($1,740)
148"Steel Post DB (7)EA 395.00 ($2,765)
265"Steel Post ,For CoolTopper Single Post Pyramid Roof (2)EA 1,090.00 ($2,180)
Prepared by: OCMI Sheet 64 of 76
Page 475 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
NATURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
CoolToppers Single Post Pyramid Roof DB Only1 (2)EA 3,650.00 ($7,300)
Alpine Slide 72" Deck DB1 (1)EA 4,260.00 ($4,260)
Freestanding play 5-12 yrs
Log Stepper 8"Height DB Only (1)EA 785.00 ($785)
DTR IND Recycled Board Oak Leaf Wobble Pod DB (1)EA 3,685.00 ($3,685)
Upcharge CUSTOM DIGIFUSE® PANEL ART (1)EA 615.00 ($615)
Welcome Sign (LSI Provided) Ages 5-12 years Direct Bury NIC
Oodle Swing DB Only1 (1)EA 6,055.00 ($6,055)
Boulders
Playground Boulder 1'(9)EA 85.00 ($765)
Playground Boulder 2'(9)EA 100.00 ($900)
Standard swing set (1)EA 7,750.00 ($7,750)
Shell seat swing (1)EA 6,340.00 ($6,340)
Supernova (1)EA 7,827.82 ($7,828)
Zip line (sloped)(1)EA 16,696.68 ($16,697)
Shipping (1)LS 42,946.20 ($42,946)
Installation (1)LS 100,207.80 ($100,208)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($782,475)
Prepared by: OCMI Sheet 65 of 76
Page 476 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
ADVENTURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($249,519)
33 UTILITIES
NET DIRECT SITE COST ($249,519)
DESIGN CONTINGENCY 2.50%($6,238)
SUBTOTAL ($255,757)
ESCALATION TO START 09/2022 4.31%($11,023)
SUBTOTAL ($266,780)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($13,339)
SUBTOTAL ($280,119)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($42,018)
SUBTOTAL ($322,137)
INSURANCE 1.00%($3,221)
SUBTOTAL ($325,358)
BONDS: CONTRACTOR 1.00%($3,254)
TOTAL SITE COST ($328,612)
SITE SUMMARY
Prepared by: OCMI Sheet 66 of 76
Page 477 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
ADVENTURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Seat walls & Freestanding Walls
Seat wall 18" with one side graphic (15)LF 210.00 ($3,150)
Continuous footings (1.75)CY 778.90 ($1,363)
PIP Rubberized Surfacing with aliphatic binder (530)SF 13.02 ($6,901)
Over pedestrian thickness natural gray concrete (530)SF 6.18 ($3,277)
Scarify & Compact Top 12"(530)SF 0.73 ($387)
Area Drains beneath PIP, slope PIP concrete (1)LS 4,000.00 ($4,000)
PIP Rubberized Surfacing Taper (82)LF 10.00 ($820)
Concrete thickened edge at Playground (0.88)CY 279.50 ($246)
Fences and gates
Playground planting fencing (rope and post )(217)LF 15.00 ($3,255)
Miscellaneous
Sand Surfacing (playground) 4" depth (11.5)CY 136.53 ($1,570)
Sand Surfacing (playground) 12" depth (137.2)CY 136.53 ($18,732)
95% Compacted subgrade 12"(4,636)SF 0.73 ($3,384)
Filter fabric (4,636)SF 1.00 ($4,636)
Perforated drain, bedding and filter fabric (126)LF 34.64 ($4,364)
Adventure Playground (Logs, boulders, ropes and nets)
Fossil dig (3)EA 3,369.00 ($10,107)
Log pile 3.2 (1)EA 22,100.00 ($22,100)
Log pile 4.1 (1)EA 20,150.00 ($20,150)
Log stepper
150 - 6" tall (10)EA 1,400.00 ($14,000)
300 - 12" tall (14)EA 1,550.00 ($21,700)
450 - 18" tall (13)EA 1,700.00 ($22,100)
600 - 24" tall (3)EA 1,900.00 ($5,700)
Robinia sand desk (1)EA 5,170.00 ($5,170)
Playground Boulder 4'(1)EA 325.00 ($325)
Playground Boulder 3'(6)EA 200.00 ($1,200)
Playground Boulder 2'(8)EA 100.00 ($800)
Shipping (1)LS 18,502.80 ($18,503)
Installation (1)LS 43,173.20 ($43,173)
Softscape
Trees
24" box (3)EA 600.00 ($1,800)
Shrubs
Specialty Gardens & Ornamental Park Landscape, 1 Gal (205)EA 12.00 ($2,460)
Sub-Surface Drip Irrigation (722)SF 3.00 ($2,166)
Sub-Surface In-Line Drip Emitter Tubing)
Tree Irrigation (2 Bubblers Per Tree)(6)EA 250.00 ($1,500)
Prepared by: OCMI Sheet 67 of 76
Page 478 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
ADVENTURE PLAYGROUND
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
Root Barrier - 24" UB 24-2 by DeepRoot (80)LF 6.00 ($480)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($249,519)
Prepared by: OCMI Sheet 68 of 76
Page 479 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
WILDLIFE BLINDS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($81,807)
33 UTILITIES
NET DIRECT SITE COST ($81,807)
DESIGN CONTINGENCY 2.50%($2,045)
SUBTOTAL ($83,852)
ESCALATION TO START 09/2022 4.31%($3,614)
SUBTOTAL ($87,466)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($4,373)
SUBTOTAL ($91,840)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($13,776)
SUBTOTAL ($105,615)
INSURANCE 1.00%($1,056)
SUBTOTAL ($106,672)
BONDS: CONTRACTOR 1.00%($1,067)
TOTAL SITE COST ($107,738)
SITE SUMMARY
Prepared by: OCMI Sheet 69 of 76
Page 480 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
WILDLIFE BLINDS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Stabilized Decomposed Granite, 4"(3,271)SF 4.52 ($14,785)
Scarify & compact soil base top 12", (3,271)SF 0.73 ($2,388)
moisture-conditioned 90%
Wildlife Blind (408)SF 65.00 ($26,520)
Approximately 6'x35' laser cut galvanized steel screen)
Continuous footings (9)CY 778.90 ($7,010)
Composite Bench (2)EA 2,500.00 ($5,000)
Fences and gates
Mitigation Area fencing, 4x4 square pressure treated posts (690)LF 15.41 ($10,633)
Wood Posts At 6' O.C. With Stainless Steel Cable)
Interpretive Signs & Elements (2)EA 4,020.00 ($8,040)
Sign Footing, assembly (0.83)CY 639.96 ($531)
Softscape
Trees
15 Gal (10)EA 160.00 ($1,600)
Tree Irrigation (2 Bubblers Per Tree)(20)EA 250.00 ($5,000)
Boulders
3'x3'x3' Landscape Boulder (1)EA 200.00 ($200)
2'x2'x2' Landscape Boulder (1)EA 100.00 ($100)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($81,807)
Prepared by: OCMI Sheet 70 of 76
Page 481 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
BOARDWALK
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($119,336)
33 UTILITIES
NET DIRECT SITE COST ($119,336)
DESIGN CONTINGENCY 2.50%($2,983)
SUBTOTAL ($122,319)
ESCALATION TO START 09/2022 4.31%($5,272)
SUBTOTAL ($127,591)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($6,380)
SUBTOTAL ($133,971)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($20,096)
SUBTOTAL ($154,067)
INSURANCE 1.00%($1,541)
SUBTOTAL ($155,607)
BONDS: CONTRACTOR 1.00%($1,556)
TOTAL SITE COST ($157,163)
SITE SUMMARY
Prepared by: OCMI Sheet 71 of 76
Page 482 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
BOARDWALK
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Boardwalk (1,631)SF 70.00 ($114,170)
Footing, assembly (8.20)CY 629.96 ($5,166)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($119,336)
Prepared by: OCMI Sheet 72 of 76
Page 483 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
SPECIALTY GARDENS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($92,419)
33 UTILITIES
NET DIRECT SITE COST ($92,419)
DESIGN CONTINGENCY 2.50%($2,310)
SUBTOTAL ($94,729)
ESCALATION TO START 09/2022 4.31%($4,083)
SUBTOTAL ($98,812)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($4,941)
SUBTOTAL ($103,753)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($15,563)
SUBTOTAL ($119,316)
INSURANCE 1.00%($1,193)
SUBTOTAL ($120,509)
BONDS: CONTRACTOR 1.00%($1,205)
TOTAL SITE COST ($121,714)
SITE SUMMARY
Prepared by: OCMI Sheet 73 of 76
Page 484 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
SPECIALTY GARDENS
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Miscellaneous
Decorative Cobble 3" depth, 6"-9" Mexican Beach Pebble,
over weed blocking fabric (9)CY 105.00 ($945)
Stabilized Decomposed Granite, 4"(2,494)SF 4.52 ($11,273)
Scarify & compact soil base top 12", (2,494)SF 0.73 ($1,821)
moisture-conditioned 90%
Interpretive Signs & Elements (2)EA 4,020.00 ($8,040)
Sign Footing, assembly (0.83)CY 639.96 ($531)
Boulders
4'x4'x4' Landscape Boulder (2)EA 325.00 ($650)
3'x3'x3' Landscape Boulder (12)EA 200.00 ($2,400)
2'x2'x2' Landscape Boulder (12)EA 100.00 ($1,200)
1'x1'x1' Landscape Boulder (1)EA 85.00 ($85)
Softscape
Trees
24" box (6)EA 600.00 ($3,600)
15 Gal (2)EA 160.00 ($320)
Shrubs
Specialty Gardens & Ornamental Park Landscape, 1 Gal (2,254)EA 12.00 ($27,048)
Specialty Gardens & Ornamental Park Landscape, 5 Gal (61)EA 29.00 ($1,769)
Maritime Succulent Scrub, 1 Gal (1,258)EA 12.00 ($15,096)
Irrigation
Permanent Irrigation (0)SF 1.00
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream Head)
Permanent Irrigation (16,048)SF 0.85 ($13,641)
Below Grade Pipe & High Efficiency Rotary Nozzle Heads )( Below Grade Pipe, 12" Pop-up Rotating Stream pop up)
Tree Irrigation (2 Bubblers Per Tree)(16)EA 250.00 ($4,000)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($92,419)
Prepared by: OCMI Sheet 74 of 76
Page 485 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
CHANNEL OVERLOOK
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
ELEMENT TOTAL COST
01 GENERAL REQUIREMENTS
02 EXISTING CONDITIONS
03 CONCRETE
04 MASONRY
05 METALS
06 WOOD, PLASTICS, AND COMPOSITES
07 THERMAL AND MOISTURE PROTECTION
08 OPENINGS
09 FINISHES
10 SPECIALTIES
11 EQUIPMENT
12 FURNISHINGS
13 SPECIAL CONSTRUCTION
14 CONVEYING EQUIPMENT
21 FIRE SUPPRESSION
22 PLUMBING
23 HEATING, VENTILATING, AND AIR CONDITIONING
26 ELECTRICAL
27 COMMUNICATIONS
28 ELECTRONIC SAFETY AND SECURITY
31 EARTHWORK
32 EXTERIOR IMPROVEMENTS ($48,162)
33 UTILITIES
NET DIRECT SITE COST ($48,162)
DESIGN CONTINGENCY 2.50%($1,204)
SUBTOTAL ($49,366)
ESCALATION TO START 09/2022 4.31%($2,128)
SUBTOTAL ($51,494)
GENERAL CONDITIONS/REQUIREMENTS 5.00%($2,575)
SUBTOTAL ($54,068)
CONTRACTOR OVERHEAD AND PROFIT 15.00%($8,110)
SUBTOTAL ($62,179)
INSURANCE 1.00%($622)
SUBTOTAL ($62,800)
BONDS: CONTRACTOR 1.00%($628)
TOTAL SITE COST ($63,428)
SITE SUMMARY
Prepared by: OCMI Sheet 75 of 76
Page 486 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
CVB Sweetwater Park
CHANNEL OVERLOOK
Chula Vista, CA
60% CONSTRUCTION DOCUMENT COST ESTIMATE OCMI JOB #: 19041.001 | 25 January 2022
DESCRIPTION QUANTITY UNIT UNIT RATE ESTIMATED COST
32 EXTERIOR IMPROVEMENTS
Hardscape
Stabilized Decomposed Granite, 4"(227)SF 4.52 ($1,026)
Scarify & compact soil base top 12", (227)SF 0.73 ($166)
moisture-conditioned 90%
Overlook Platform
Overlook Platform - Guardrail (46)LF 297.65 ($13,692)
CIP concrete seat wall (27)LF 225.00 ($6,075)
Continuous footings, Allowance (2.19)CY 759.84 ($1,664)
CIP Concrete wall 8"(305)SF 52.23 ($15,931)
Continuous footings, Allowance (7)CY 759.84 ($5,319)
Interpretive Signs & Elements (1)EA 4,020.00 ($4,020)
Sign Footing, assembly (0.42)CY 639.96 ($269)
TOTAL - 32 EXTERIOR IMPROVEMENTS ($48,162)
Prepared by: OCMI Sheet 76 of 76
Page 487 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
E-1
4825-3218-1203/024036-0079
Exhibit E
Construction Requirements
1. GENERALLY. DEVELOPER SHALL COMPLY WITH THE PROVISIONS OF THIS
EXHIBIT E AS FOR THE CONVENTION CENTER AND DEVELOPER’S PHASE 1A
INFRASTRUCTURE IMPROVEMENTS (AS APPLICABLE), THAT CERTAIN DISTRICT
CONDITIONAL PROJECT APPROVAL DATED MAY 3, 2022 FILED IN THE OFFICE OF THE
DISTRICT CLERK AS DOCUMENT NO. 74083 (“DCPA”), AND THE PROVISIONS OF THE
PROJECT IMPLEMENTATION AGREEMENT IN CONNECTION WITH ALL
CONSTRUCTION OR DEMOLITION WORK FOR THE CONVENTION CENTER AND
DEVELOPER’S PHASE 1A INFRASTRUCTURE IMPROVEMENTS (AS APPLICABLE)
CONSTRUCTION WORK”).
2. Contractors. Authority shall have the right to approve the general contractor for Construction
Work, in its reasonable discretion. All contractors and subcontractors performing any Construction
Work must be licensed in the State of California.
3. Architects and Engineers. All architects and engineers must have an active license to practice
in the State of California.
4. Reserved.
5. Construction Barricades. Developer shall install a construction barricade around the area of
Construction Work, and erect such other protective measures as may be reasonably required by
Authority.
6. Dust and Trash Control. Developer shall take commercially reasonable steps to minimize
dust resulting from any Construction Work, and shall promptly dispose of all trash generated from
the Construction Work.
7. Performance Bond and Payment Bond. Article XIII of the Agreement shall govern
requirements relating to Performance and Payment Bonds for the Convention Center and
Developer’s Phase 1A Infrastructure Improvements.
8. Financial Assurances. At least ten (10) days prior to commencing any Construction Work,
Developer shall deliver to Authority evidence reasonably demonstrating to Authority that Developer
has obtained or retains financial resources and capabilities in an amount sufficient to complete the
Construction Work.
9. Construction Schedule. The Agreement governs provisions relating to the schedule for the
Construction Work.
10. Contractor Insurance. Developer shall ensure that all contractors and subcontractors
performing Construction Work shall obtain and thereafter maintain so long as such Construction
Work is occurring, at least the minimum insurance coverages set forth below, which insurance
coverages may be modified by Authority from time to time in its reasonable discretion:
i) Workers’ compensation and employer’s liability insurance:
Page 488 of 761
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E-2
4825-3218-1203/024036-0079
a) Workers’ compensation insurance as required by any applicable law or
regulation.
b) Employer’s liability insurance in the amount of $1,000,000 each
accident/employee/disease.
ii) General liability insurance: Commercial General Liability insurance covering all
operations by or on behalf of the contractor, which shall include the following minimum limits of
liability and coverages:
a) Required coverages:
1) Premises and Operation;
2) Products and Completed Operations;
3) Contractual Liability;
4) Broad Form Property Damage (including Completed Operations);
5) Explosion, Collapse and Underground Hazards; and
6) Personal Injury Liability.
b) Minimum limits of liability:
1) $2,000,000 each occurrence (for bodily injury and property damage);
2) $2,000,000 for Personal Injury Liability;
3) $2,000,000 aggregate for Products and Completed Operations (which
shall be maintained for a three (3) year period following final completion of the
Work); and
4) $2,000,000 general aggregate applying separately to this Project.
iii) Automobile Liability Insurance: Automobile liability insurance including coverage
for owned, leased, rented, hired, and/or non-owned automobiles. The limits of liability shall not be
less than $1,000,000 for each accident limit for bodily injury, death and property damage.
iv) Umbrella/Excess Liability Insurance: The General Contractor shall also carry
umbrella/excess liability insurance in the amount of $5,000,000. If there is no per project aggregate
under the Commercial General Liability policy, the limit shall be $10,000,000.
v) Contractor’s Pollution Liability Coverage: If either the City or the Port District
determines, in its sole and reasonable discretion, that Developer performs or contracts for any work
which involves a Hazardous Materials Activity or which has the potential to disturb or result in the
release of any Hazardous Material, for which there is potential exposure to pollution or Hazardous
Materials to Persons or the environment, Developer shall obtain or cause its contractor to obtain
Contractor’s Pollution Liability, Pollution Legal Liability and/or Asbestos Pollution Liability and/or
Page 489 of 761
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E-3
4825-3218-1203/024036-0079
Errors & Omissions applicable to the work being performed or the potential release of any Hazardous
Material, with limits of $5,000,000 per claim or occurrence and $10,000,000 aggregate per policy
period of one year.
Any and all of the insurance described above may be obtained and maintained by Developer through
an owner-controlled insurance program instead of by a contractor and/or a subcontractor. Public
Entity Parties shall be named as an additional insured on the forgoing insurance, and such insurance
shall provide that the same shall not be canceled, or reduced in amount or coverage below the
requirements of this Agreement, nor shall it be allowed to expire, without at least thirty (30) days
prior written notice to Authority. The foregoing insurance shall include a waiver of subrogation in
favor of Public Entity Parties.
11. Notice of Completion. Within ten (10) days after Completion of any Construction Work,
Developer shall record a Notice of Completion in the office of the San Diego County Recorder and
furnish a copy thereof to Authority upon such recordation.
12. Copy of Record Set of Plans and Certificate of Completion. Following the conclusion of any
Construction Work, deliver to Authority (i) with respect to the Convention Center, a set of “as-built
drawings” and (ii) a copy of the certificate of completion issued by the applicable government
agency, if any such certificate of completion must be issued.
13. Conflict. In the event of conflict between the terms of these Construction Requirements and
terms of the Agreement, the terms of the Agreement shall control.
Page 490 of 761
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F-1
4825-3218-1203/024036-0079
Exhibit F
Convention Center Plans
Attachment C and Attachment F to the DCPA (to the extent applicable to the Convention
Center).
Page 491 of 761
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G-1-1
4825-3218-1203/024036-0079
Exhibit G-1
Approved Subcontractor Bid and Award Process
I. GENERAL CONTRACTOR
Developer has selected as the general contractor for the construction of the Developer’s
Phase 1A Infrastructure Improvements a joint venture (“MMJV”) comprising M.A Mortenson
Company (“Mortenson”) and McCarthy Building Companies, Inc. (“McCarthy”). Mortenson, a
leader in the industry with a wealth of experience in similar large scale projects, was a natural fit for
the construction of Gaylord Rockies Resort and Convention Center (the “Rockies Project”), a project
developed by Developer’s affiliate (“RIDA Rockies”). Throughout the construction of the Gaylord
Rockies Project, RIDA Rockies gained extensive experience with Mortenson. When possible,
Developer’s development process involves bringing forward the general contractor who constructed
a prior similar project (with the experience gained), and teaming them up with a general contractor
that has a strong local presence. McCarthy’s presence is strong locally, as well as within the sub-
contractor community. In addition to McCarthy’s local presence and positive reputation, McCarthy’s
resume of large scale developments make MMJV an ideal partner for the Project.
II. SUBCONTRACTORS
A brief description of the process to be followed for the selection of subcontractors follows:
Initial Invitation to Propose
MMJV conducts research on potentially qualified subcontractors. This includes review of
both Mortenson and McCarthy relationships and databases for local and regional
subcontractors. For larger packages this may include major national subcontractors.
Consultants that are retained by Developer and/or MMJV to assist in the preparation of bids
or contract documents (including, without limitation, preliminary / concept designs), or to
assist in the solicitation, may submit a bid for or be awarded a subcontract, subject to the
satisfaction of the other criteria set forth in this Exhibit G-1.
Developer may designate specific persons or entities from whom MMJV will obtain bids or
competitive proposals, subject to those persons or entities entering into written subcontracts
acceptable to MMJV and Developer.
Direct contact is made with identified potential subcontractors to gauge their interest and
brief them on the opportunity. In many cases this is a continuation of on-going discussions
related to subcontractor input for budget estimates based on earlier design packages.
RFQ Stage
Identified potential subcontractors (typically minimum of five for each package) are invited
to submit qualifications data. This includes information regarding past relevant / similar
project experience, customer feedback from those projects, current backlog, available trades
personnel resources, proposed supervisory / management personnel, financial capability, and
design capabilities (for design-build subcontracts).
MMJV and Developer review RFQ responses to identify those subs to be invited to RFP
stage.
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G-1-2
4825-3218-1203/024036-0079
RFP Stage
Where practical, MMJV will obtain a minimum of three bids/competitive proposals from all
subcontractors and from suppliers of materials or equipment directly to MMJV, for
subcontracts or purchase orders in excess of $75,000, and a minimum of two bids from the
subcontractors, and from suppliers of materials or equipment (but only materials and
equipment which will be incorporated into the work) for the work, for such subcontracts or
purchase orders having a value less than $75,000.00, and will deliver such bids to Developer.
Subcontractors deemed qualified are invited to submit detailed proposals including –
o Qualitative factors
Supervisory personnel commitments and organization chart
Schedule management plan
Quality management plan
Plan for providing adequate qualified trades personnel
Pre-construction / design phase services approach and staffing (for “early-
engagement” subs)
o Quantitative factors
Pricing for the detailed subcontract package scope of work description as
provided by MMJV. This includes further breakdown as directed by MMJV
to allow for detailed pricing evaluation.
Estimated trades work-hours
Schedule detail and projected trades crew size graphs
Proposed rates for labor, equipment, insurance etc. (for use in future change
order negotiations, or for billing purposes in the case of cost-plus/GMP
subcontracts)
o Contract terms – Subcontractors are required to identify any exceptions to the
subcontract documents and project manual provided by MMJV, as well as any
clarifications or exceptions to the scope of work definition provided.
Proposals are evaluated jointly by MMJV and Developer. In general, quantitative factors are
given the most weight, but significant differences in evaluation of qualitative factors could
overcome a difference in pricing. MMJV and Developer may also consider other factors
such as the maintenance of labor peace.
The highest rated proposers (typically target three each) are invited for in-depth interviews.
Interview & BAFO Stage
In-depth interviews are conducted with the short-listed subcontractors. The interviews are
focused on proposed supervisory personnel qualifications, the subcontractors’ project plan,
and insuring there is a complete understanding of the required scope and schedule for the
subject package as well as regulatory requirements (i.e. prevailing wage, DDA and Coastal
Development Permit constraints, etc.).
Following interviews, subcontractors are provided with a list of MMJV and Developer
comments or questions to be addressed, feedback on any proposed exceptions to the contract
documents, and are invited to provide a “best and final offer” price proposal.
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G-1-3
4825-3218-1203/024036-0079
Final Selection & Award Process
MMJV and Developer jointly review updated, final proposals and make tentative selection
for award based on their determination of the overall value for the Project.
Selected subcontractor is informed of their status, and any additional conditions for award by
MMJV, in consultation with Developer.
After confirmation of the selected subcontractor’s acceptance of any additional conditions,
unsuccessful subcontractors are notified and provided a debrief regarding evaluation of their
proposal.
No subcontract will be awarded if either MMJV (in its reasonable determination) or
Developer objects thereto.
MMJV will provide to Developer, prior to commencement of the work and updated as
changes may occur, a listing of all subcontractors and suppliers who MMJV has retained to
complete the work.
From time to time after any subcontracts have been awarded, Developer will deliver a notice
to the Authority with a list of such subcontracts and a confirmation that the subcontractors
have been selected in accordance with the procedure set forth in this Exhibit G-1. If any
subcontractor is not expected to be selected in accordance with the procedure set forth in this
Exhibit G-1, then, prior to awarding the relevant subcontract, Developer will deliver a request
to the Authority for the Authority to waive the relevant provisions of the Authority
Procurement Policy with respect to the selection of such subcontractor in accordance with the
waiver process set forth in the Authority Procurement Policy.
Clarifications and Exceptions to the Subcontractor Selection Process:
The portions of the work that will be identified on an exhibit to the construction contract and
the contract amount for which will not, in the aggregate, exceed $12 million, will not be
required to be bid to others.
MMJV will not be required to obtain bids for work that contractors customarily self-perform
which is traditionally referred to as “General Conditions”, “General Requirements” or “Site
Support Service” work), such as management, quality assurance, scheduling, security, traffic
control, safety, supervision and accounting, etc.
Except for subcontracts and work that are covered by another exception, if bids are received
from Mortenson, McCarthy or any company affiliated with any of them, all bids for the
portion of the work involved, including bids from Mortenson, McCarthy or such affiliated
company, will be sealed bids which are to be opened in the presence of Developer.
Whenever with Developer’s prior written consent MMJV plans to self-perform any aspect of
the work without using the sealed bid procedure stated in the preceding sentence, including a
sealed bid from Mortenson, McCarthy or an affiliated company, then MMJV, as a condition
precedent, will provide Developer a detailed cost and fee estimate for such planned self-
performed work together with two bids from subcontractors, or an independent estimate from
a third-party cost estimating firm as selected by Developer. In advance of any such self-
performed work, and within sufficient time so as not to create schedule delays, MMJV will
review all such pricing with Developer and obtain Developer’s informed written consent for
such self-performed work.
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MMJV may self-perform minor or incidental portions of the work without bidding such work
to other subcontractors so long as MMJV only charges MMJV’s cost of such work and no
additional fee, overhead or general conditions for such self-performed work.
Other work self-performed by MMJV will be treated as lump sum subcontracted work under
the contract documents for the purposes of bidding, award and payment except as mutually
agreed by MMJV and Developer. If the parties agree that such self-performed work is to be
completed on a “cost plus a fee” basis, the applicable fee percentage will be 15%.
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Exhibit G-2
Subcontractor Bids Awarded Prior To Effective Date
1. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and Sierra
Pacific West, Inc.
2. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and Hazard
Construction Engr LLC
3. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and QSB
Construction, Inc.
4. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and Castle
Contracting, LLC
5. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and
Brightview Landscape Development, Inc.
6. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and Summit
Enterprises, Inc.
7. Subcontract Agreement between Mortenson/McCarthy Chula Vista Resort and SB&O,
Inc.
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Exhibit G-3
Approved Construction Contracts
1. AIA A133 – Standard Form of Agreement between Owner and MMJV as Construction
Manager as Constructor – Cost of the Work Plus a Fee with Guaranteed Maximum Price
Convention Center) and AIA A201 – General Conditions of the Contract for
Construction.
2. AIA A133 – Standard Form of Agreement between Owner and MMJV as Construction
Manager as Constructor – Cost of the Work Plus a Fee with Guaranteed Maximum Price
Phase 1A Infrastructure) and AIA A201 – General Conditions of the Contract for
Construction.
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Exhibit H
Form of Completion Guaranty
THIS COMPLETION GUARANTY (“Guaranty”), is made as of _______________, by
MFO Holding Company, LLC (“Guarantor”) to and for the benefit of the San Diego Unified Port
District, a public corporation (“Port District”), the Chula Vista Bayfront Facilities Financing
Authority, a joint exercise of powers authority (“Authority”), the City of Chula Vista, a chartered
municipal corporation (the “City,” and, together with the Port District and the Authority, the “Public
Entities”), and JPMorgan Chase Bank, National Association, a banking association organized and
existing under the laws of the United States, as Administrative Agent under and as defined in the
Bond Purchase Agreement (as defined below) (in such capacity, the “Administrative Agent”).
RECITALS
A. RIDA Chula Vista, LLC, a Delaware limited liability company (together with any
successors and assigns, “RIDA”), is party to that certain ground lease, dated as of the date hereof, by
and between Port District and RIDA (as amended, amended and restated, supplemented or otherwise
modified from time to time, the “Hotel Ground Lease”).
B. The Hotel Ground Lease requires RIDA to develop and construct the “Resort Hotel”
as defined in the Hotel Ground Lease) and the “Parking Improvements” (as defined in the Hotel
Ground Lease) in accordance with the Hotel Ground Lease.
C. RIDA is a party to that certain Sublease Agreement (Chula Vista Bayfront
Convention Center), dated as of the date hereof, by and between the City and RIDA (as amended,
amended and restated, supplemented or otherwise modified from time to time, the “Convention
Center Sublease”).
D. RIDA is a party to that certain Project Implementation Agreement, dated as of the
date hereof, by and among Authority, City, Port District, the Bayfront Project Special Tax Financing
District, and RIDA (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “PIA” and, collectively with the Hotel Ground Lease and the Convention Center
Sublease, the “Project Documents” and each, a “Project Document”).
E. The PIA requires RIDA to develop and construct (i) the “Convention Center” (as
defined in the PIA) in accordance with the PIA and (ii) “Developer’s Phase 1A Infrastructure
Improvements” (as defined in the PIA, and collectively with the Resort Hotel, the Parking
Improvements and the Convention Center, the “Project”) in accordance with the PIA, for the benefit
of the Public Entities.
F. The Authority is a party to that certain Bond Purchase and Continuing Covenant
Agreement, dated as of the date hereof, by and among the Authority, the Administrative Agent and
the Purchasers (as defined therein) from time to time party thereto (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Bond Purchase Agreement”),
which is being entered into to induce the Purchasers to purchase the Bonds (as defined in the Bond
Purchase Agreement), the proceeds of which shall be used for, among other things, the payment of
the Developer’s Phase 1A Contract Sum and the Convention Center Contract Sum (each as defined
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in the PIA) in accordance with the terms of the Indenture (as defined in the Bond Purchase
Agreement).
G. It is a condition precedent to the obligations of the Purchasers to purchase Bonds that
Guarantor execute and deliver this Guaranty.
H. Guarantor is an affiliate of RIDA and thus will benefit from the development of the
Project in accordance with the terms of the Project Documents and from the purchase of the Bonds.
I. Each Public Entity has relied on the statements and agreements contained herein in
agreeing to enter into the Project Documents to which it is a party.
GUARANTY
NOW, THEREFORE, intending to be legally bound, Guarantor in consideration of the
matters described in the foregoing Recitals, which Recitals are incorporated herein and made a part
hereof, hereby covenants and agrees for the benefit of the Public Entities and the Administrative
Agent, together with their respective successors and assigns as follows:
1.1 Guaranty. Guarantor hereby warrants and guarantees to the Public Entities
and the Administrative Agent (collectively, the “Obligees” and, collectively with RIDA, the
Parties” and each, a “Party”) RIDA’s obligation to:
a) Complete (as defined in the Hotel Ground Lease) the Resort Hotel
and the Parking Improvements, and procure and install furniture, fixtures and equipment and
operating supplies and equipment that is generally necessary to open the Resort Hotel and the
Parking Improvements for business (i) within the corresponding time allowed by the Hotel Ground
Lease, including any time extensions authorized thereunder; (ii) in accordance with the terms and
conditions of the Hotel Ground Lease that are applicable to the construction of the Resort Hotel and
the Parking Improvements, including without limitation the procurement of a certificate of
occupancy for the Resort Hotel and the Parking Improvements and delivery and acceptance by the
Port District; (iii) substantially in accordance, in all material respects, with the Plans (as defined in
and revised in accordance with the Hotel Ground Lease) with respect to the Resort Hotel and the
Parking Improvement Plans (as defined in and revised in accordance with the Hotel Ground Lease);
and (iv) free of any mechanics’ liens and materialmen’s’ liens with respect to the Resort Hotel and
the Parking Improvements;
b) Complete (as defined in the PIA) the Convention Center and procure
and install furniture, fixtures and equipment and operating supplies and equipment that is generally
necessary to open the Convention Center for business (i) within the corresponding time allowed by
the PIA, including any time extensions authorized thereunder; (ii) in accordance with the terms and
conditions of the PIA that are applicable to the construction of the Convention Center, including
without limitation the procurement of a certificate of occupancy for the Convention Center and
delivery and acceptance by the applicable Public Entities; (iii) substantially in accordance, in all
material respects, with the Convention Center Plans (as defined in and revised in accordance with the
PIA); and (iv) free of any mechanics’ liens and materialmen’s’ liens with respect to the Convention
Center;
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c) Complete (as defined in the PIA) the Developer’s Phase 1A
Infrastructure Improvements and procure acceptance of the Developer’s Phase 1A Infrastructure
Improvements by the applicable Public Entity (i) within the corresponding time allowed by the PIA,
including any time extensions authorized thereunder; (ii) in accordance with the terms and conditions
of the PIA that are applicable to the construction of the Developer’s Phase 1A Infrastructure
Improvements, including without limitation delivery and acceptance by the applicable Public
Entities; (iii) substantially in accordance, in all material respects, with the Contract Documents (as
defined in and revised in accordance with the PIA); and (iv) free of any mechanics’ liens and
materialmen’s’ liens with respect to Developer’s Phase 1A Infrastructure Improvements;
d) Pay any amounts owed by RIDA in connection with its “Election to
Terminate” pursuant to the terms set forth in Sections 5.1(d) and 5.2(b) of the Convention Center
Sublease; and
e) Pay to the Trustee (as defined in the Bond Purchase Agreement), as
assignee of the Authority, any amounts due and payable by RIDA under Section 5.1.2 of the PIA
collectively, the “Guaranteed Obligations”).
RIDA’s satisfaction of Section 1.1(a) – (e) shall constitute “Completion of the
Project”.
1.2 Consideration. Guarantor acknowledges that it has made this Guaranty to
induce (i) each Public Entity to enter into the Project Documents to which it is a party and contribute
to the Project, either directly or indirectly through one of the other Public Entities, a portion of the
development costs of the Convention Center and Developer’s Phase 1A Infrastructure Improvements
as set forth in the PIA (the “Project Public Investment”) and (ii) each Purchaser to commit to
purchase the Bonds pursuant to the Bond Purchase Agreement, and each Public Entity is entering
into such Project Documents and contributing directly or indirectly to the Project Public Investment
and each Purchaser is committing to purchase the Bonds under the Bond Purchase Agreement in
reliance upon this Guaranty, and the Public Entities would not have agreed to enter into such Project
Documents and would not have agreed to contribute the Project Public Investment, and the
Purchasers would not have committed to purchase the Bonds, in each case without the Guarantor’s
execution and delivery of this Guaranty.
1.3 Obligations of Guarantor Upon Default. In the event RIDA fails to
perform any part of the Guaranteed Obligations when due, after any and all cure periods applicable to
RIDA and any and all Permitted Lenders (as defined in the Hotel Ground Lease), as applicable, have
expired, or the Foreclosure Purchaser that assumes the Project Documents fails or elects not to
complete the Resort Hotel, Parking Improvements, Convention Center, or Phase 1A Infrastructure
Improvements in accordance with the applicable Project Documents, Guarantor shall, upon demand
of the Port District, as it relates to the Resort Hotel and the Parking Improvements, and the Authority,
as it relates to the Convention Center and Developer’s Phase 1A Infrastructure Improvements, and
the City and Port District as it relates to the proposed ownership of each in Developer’s Phase 1A
Infrastructure Improvements: (i) promptly cure such failure to perform the applicable part of the
Guaranteed Obligations by performing or causing the performance of such obligation; and (ii) pay to
the Public Entities all reasonable costs and expenses, including reasonable attorneys’ fees and
expenses, they incur in enforcing the performance of the Guaranteed Obligations. In the event RIDA
defaults in the performance of its obligations under any Project Document, provided Guarantor
undertakes to cure such defaults, each Public Entity agrees to accept the performance by Guarantor
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of such obligations under such Project Document, and accord Guarantor all of the rights and benefits
due to RIDA under such Project Document to the extent necessary for the Guarantor to fully satisfy
its obligations hereunder.
1.4 RIDA Acknowledgment. RIDA hereby acknowledges that any payment
made by any Public Entity to Guarantor of any amount that such Public Entity owes to RIDA shall
satisfy such Public Entity’s obligation to pay such amount to RIDA.
2. CHARACTER OF GUARANTY.
2.1 Guarantee of Performance. This Guaranty is not a guarantee of collection,
but rather of performance. Guarantor hereby covenants and agrees that Guarantor is liable for the
Guaranteed Obligations as primary obligor. Any Guaranteed Obligation may be enforced by any
Obligee that is entitled to enforce such Guaranteed Obligation separately without enforcing
compliance with any other Guaranteed Obligation to which such Obligee is entitled to enforce and
without waiving its right or the right of any other of the Obligees to subsequently enforce or
concurrently enforce any other Guaranteed Obligation hereunder.
2.2 Other Guaranties; Joint and Several Obligations. For purposes of this
Guaranty, “Net Worth” shall mean, with respect to any Person, such Person’s total assets less the
amount of such Person’s total liabilities, determined in accordance with the Guarantor’s standard
accounting principles, as presented in the form attached hereto as Exhibit A. For purposes of this
Guaranty, “Liquidity” shall mean, with respect to any Person, such Person’s (a) assets that are
specified in clauses (1) through (10) of the definition of Permitted Investments set forth in the
Indenture of Trust dated as the date hereof (the “Indenture”), between the Authority and
Wilmington Trust, National Association, as trustee, without giving effect to the introductory clause
of such definition and (b) without duplication of (a), publicly traded securities. The Guarantor and
each of the Public Entities acknowledge and agree that a guaranty of the Guaranteed Obligations (an
Other Guaranty”) may be provided to the Public Entities by any other guarantor (“Other
Guarantors”) in accordance with the terms of this Guaranty. If at any time the Guarantor (which
may include an Other Guarantor) has a Net Worth (“Guarantor Net Worth”), when taken together
with the Net Worth of each Other Guarantor at such time (collectively, “Other Guarantor Net
Worth”), of less than $200,000,000 or the Guarantor has a Liquidity (“Guarantor Liquidity”),
when taken together with the Liquidity of each Other Guarantor at such time (collectively, “Other
Guarantor Liquidity”), of less than $40,000,000, then the Guarantor shall promptly notify the
Public Entities thereof and shall do one or more of the following to achieve a Minimum Net Worth
and Minimum Liquidity for the Guarantor, no later than 60 days, or 10 Business Days if there is an
ongoing Event of Default (under and as defined in the Hotel Ground Lease or the PIA, as applicable),
after the date that the Guarantor notifies the Public Entities thereof, (a) (i) increase the Guarantor Net
Worth so that the increased Guarantor Net Worth, when taken together with the Other Guarantor Net
Worth at such time, shall be equal to or be greater than $200,000,000 (the “Minimum Net Worth”)
and/or (ii) increase the Guarantor Liquidity so that the increased Guarantor Liquidity, when taken
together with the Other Guarantor Liquidity at such time, shall be equal to or be greater than
40,000,000 (the “Minimum Liquidity”), or (b) cause a Qualified Guarantor to execute an Other
Guaranty substantially and materially in the form of this Guaranty; provided, however, that there
shall be no more than three Other Guaranties outstanding at any time. Should any Other Guaranty be
provided to the Public Entities by any Other Guarantor, Guarantor and the Other Guarantors agree
that the liability of the Guarantor and Other Guarantors hereunder shall be joint and several and that
each provision hereof shall apply to the Guarantor and each Other Guarantor individually and to
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Guarantor and all Other Guarantors collectively, and the Public Entities may seek to enforce this
Guaranty against Guarantor or the Other Guarantors (and less than all of the Guarantor and Other
Guarantors) without impairing the rights of the Public Entities against Guarantor or any of the Other
Guarantors.
2.3 Continuing Guaranty. This is a continuing guaranty, and shall apply to all
of the Guaranteed Obligations and all renewals and extensions thereof, and the fact that at any time,
and from time to time, such Guaranteed Obligations may be performed in full or RIDA shall no
longer be party to one or more of the Project Documents, shall not affect the obligations of the
Guarantor hereunder which arise thereafter. In the event that RIDA is no longer a party to one or
more of the Project Documents, either as a result of foreclosure by the Permitted Lender or a
transfer-in-lieu thereof, or otherwise, the term “RIDA” herein shall be automatically interpreted to
mean the person or entity that has succeeded RIDA under such Project Document(s), or if RIDA is
still a party to one or more of the Project Documents, the term “RIDA” herein shall mean RIDA and
the new entity that has succeeded RIDA under the Project Documents, without any further action of
the Public Entities or Guarantor.
2.4 Independent Obligation. The obligations of Guarantor hereunder are
independent of the obligations of RIDA, and Other Guarantor(s) or any other Person (as hereinafter
defined), and each of the Obligees may enforce any of their rights hereunder independently of any
other right or remedy that such Obligee may at any time hold with respect to the Guaranteed
Obligations, independently or collectively with the other Obligees.
2.5 Unsecured Obligation. Except as otherwise provided in this Guaranty, this
Guaranty is not secured.
3. RELATIONSHIP OF PARTIES. Guarantor hereby represents and warrants as of
the date hereof that: (a) this Guaranty is executed at the request of the Obligees; (b) Guarantor has
reviewed all the terms and provisions of the Plans (as defined in the Hotel Ground Lease) for the
Resort Hotel, the Preliminary Parking Improvement Plans (as defined in the Hotel Ground Lease) for
the Parking Improvements, the Convention Center Plans (as defined in the PIA) for the Convention
Center, and the Contract Documents (as defined in the PIA) for Developer’s Phase 1A Infrastructure
Improvements, in each case as revised in accordance with the applicable Project Document
collectively, the “Project Plans”), and the Project Documents; (c) the Public Entities have made no
representations to Guarantor with regard to the Project Plans or the Project Documents; and
d) Guarantor has established adequate means of obtaining from RIDA and from other sources, on a
continuing basis, financial and other information pertaining to RIDA’s financial condition, the
progress of construction of the Project and the status of RIDA’s performance of its obligations under
the Project Documents. Guarantor hereby covenants for the term of this Guaranty that: (i) Guarantor
is and shall continue to be a Person which is not a Prohibited Person (as defined below), which, in the
aggregate with the Other Guarantor Net Worth, has a Guarantor Net Worth of at least the Minimum
Net Worth and which, in the aggregate with the Other Guarantor Liquidity, has a Guarantor Liquidity
of at least the Minimum Liquidity (“Qualified Guarantor”); and (ii) Guarantor has not and will not,
without the prior written consent of all of the Public Entities in each of their sole and absolute
discretion, sell, lease, assign, encumber, hypothecate, transfer or otherwise dispose of any of
Guarantor’s assets, whether in one transaction or a series of transactions, which will result in
Guarantor having a Guarantor Net Worth, together with the Other Guarantor Net Worth, of less than
the Minimum Net Worth or Guarantor having a Guarantor Liquidity, together with the Other
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Guarantor Liquidity, of less than the Minimum Liquidity. For purposes of this Guaranty,
Prohibited Person” shall have the same meaning as the Hotel Ground Lease.
4. CERTAIN AGREEMENTS AND WAIVERS BY GUARANTOR.
4.1 Subject to Section 4.2 and Section 4.9, Guarantor agrees that neither the
rights or remedies of the Obligees nor any of Guarantor’s obligations under the terms of this
Guaranty, including without limitation, the Guaranteed Obligations, shall be released, diminished,
impaired, reduced or affected by any one or more of the following events, actions, facts, or
circumstances; Guarantor waives any rights, claims or defenses arising from any such events,
actions, facts, or circumstances; and the liability of Guarantor under this Guaranty shall be absolute,
unconditional and irrevocable irrespective of:
a) any limitation on the liability of, or recourse against, any other person
or entity (collectively, “Person”) under the Project Documents or arising under any Laws (as defined
in the Hotel Ground Lease), except that Guarantor will be entitled to the limitations on liability set
forth in Section 5.1.2 of the PIA as it applies to delay damages only; provided, that the limitations in
Section 5.1.2 shall not apply to any amounts payable under Section 1.1(e) above;
b) any claim or defense that this Guaranty was made without
consideration or is not supported by adequate consideration or that the obligations of Guarantor
hereunder exceed or are more burdensome than those of RIDA under the Project Documents;
c) the release or taking or accepting of any other security or guaranty
for, or right of recourse with respect to, any or all of the Guaranteed Obligations;
d) the operation of any statutes of limitations (unless each of the
Obligees had written notice of a claim and failed to pursue their remedies in the legally prescribed
time periods) or other Laws regarding the limitation of actions, all of which are hereby waived as a
defense to any action or proceeding brought by any of the Obligees against Guarantor, to the fullest
extent permitted by Laws;
e) any homestead exemption or any other exemption under any Laws;
f) any release, surrender, abandonment, exchange, alteration, sale or
other disposition, subordination, deterioration, waste, failure to protect or preserve, impairment, or
loss of, or any failure to create or perfect any lien or security interest with respect to, or any other
dealings with, any collateral or security at any time existing or purported, believed or expected to
exist in connection with any or all of the Guaranteed Obligations, or any impairment of Guarantor’s
recourse against any Person or collateral;
g) whether express or by operation of Laws, any partial release of the
liability of Guarantor hereunder (except to the extent expressly so released) or any complete or
partial release of RIDA or any other Person liable, directly or indirectly, for the performance of any
or all of the Guaranteed Obligations;
h) the death, insolvency, bankruptcy, disability, incapacity, dissolution,
liquidation, termination, receivership, reorganization, merger, consolidation, change of form,
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structure or ownership, sale of all assets, or lack of corporate, partnership or other power of RIDA or
any other Person at any time liable for the performance of any or all of the Guaranteed Obligations;
i) either with or without notice to or consent of Guarantor, any renewal,
extension, modification, supplement, subordination or rearrangement of the terms of any or all of the
Guaranteed Obligations and/or the Project Documents, including material alterations of the terms of
payment or performance (including changes with respect to the construction of the Project) or any
other terms thereof, or any waiver, termination, or release of, or consent to departure from any of the
Project Documents or any other guaranty of any or all of the Guaranteed Obligations, or any
adjustment, indulgence, forbearance, or compromise that may be granted from time to time by any of
the Obligees to RIDA or any other Person at any time liable for the performance of any or all of the
Guaranteed Obligations;
j) any neglect, lack of diligence, delay, omission, failure, or refusal of
any of the Obligees to take or prosecute (or in taking or prosecuting) any action for the collection or
enforcement of any of the Guaranteed Obligations, or to exercise (or in exercising) any other right or
power with respect to any security therefor, or to take or prosecute (or in taking or prosecuting) any
action in connection with the Project Documents, or any failure to sell or otherwise dispose of in a
commercially reasonable manner any collateral securing any or all of the Guaranteed Obligations;
k) any failure of any of the Obligees to notify Guarantor of any creation,
renewal, extension, rearrangement, modification, supplement, subordination, or assignment of the
Guaranteed Obligations or any part thereof, or of any Project Document, or of any release of or
change in any security, or of the occurrence or existence of any default or event of default under any
Project Document (each, an “Event of Default”), or of any other action taken or refrained from
being taken by any of the Obligees against RIDA or any security or other recourse, or of any new
agreement between any of the Obligees and RIDA, it being understood that none of the Obligees
shall be required to give Guarantor any notice of any kind under any circumstances with respect to or
in connection with the Guaranteed Obligations, any and all rights to notice Guarantor may have
otherwise had being hereby waived by Guarantor, and Guarantor shall be responsible for obtaining
for itself information regarding RIDA and any collateral, including any changes in the business or
financial condition of RIDA or any collateral, and Guarantor acknowledges and agrees that the
Obligees shall have no duty to notify Guarantor of any information which the Obligees may have
concerning RIDA, the Project, the Project Documents, or any collateral;
l) the existence of any claim, counterclaim, setoff or other right that
Guarantor may at any time have against RIDA, any of the Obligees, or any other Person, whether or
not arising in connection with this Guaranty or any Project Document;
m) any order, ruling or plan of reorganization emanating from
proceedings under Title 11 of the United States Code with respect to RIDA or any other Person,
including any extension, reduction, composition, or other alteration of the Guaranteed Obligations,
whether or not consented to by any of the Obligees, or any action taken or omitted by any of the
Obligees in any such proceedings, including any election to have any of the Obligees’ claim allowed
as being secured, partially secured or unsecured, any extension of credit by any of the Obligees in
any such proceedings or the taking and holding by any of the Obligees of any security for any such
extension of credit;
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n) any other condition, event, omission, action or inaction that would in
the absence of this Section 4.1(n) result in the release or discharge of Guarantor from the
performance or observance of any obligation, covenant or agreement contained in this Guaranty or
any other agreement;
o) any exercise of remedies, including, but not limited to, foreclosure (or
transfer-in-lieu thereof) or the appointment of receiver, by any Permitted Lender; or
p) enforcement or forbearance by any of the Obligees from enforcement
of the Guaranteed Obligations on a net or gross basis.
4.2 Notwithstanding anything to the contrary in this Guaranty, with respect to the
Public Entities’ obligations to Guarantor under Section 1.3 hereof under the Project Documents:
a) To the extent any of the Public Entities fails to perform any of their respective
obligations under any of the Project Documents and such failure to perform materially and adversely
interferes with or prevents Guarantor’s performance of any of the Guaranteed Obligations (a
Material Failure to Perform”), then Guarantor’s time to perform with respect to the impacted
Guaranteed Obligation(s) shall be extended by one day for each day that such Material Failure to
Perform delays Guarantor’s performance of such Guaranteed Obligation(s), if notice of such Material
Failure to Perform is provided by RIDA or Guarantor to the Public Entities within sixty (60) days of
such Material Failure to Perform. For purposes of this Section 4.2, a Material Failure to Perform
shall include any failure by the Public Entities (x) under Section 1.3 to make payments to Guarantor
of amounts owed under the Project Documents or (y) to make payments to RIDA of amounts owed
under the Project Documents. The Parties agree upon the written request of any Party to submit any
dispute regarding whether or not a Material Failure to Perform exists permitting a Guarantor delay
under this Section 4.2(a) to mediation administered by the American Arbitration Association under
its Commercial Mediation Procedures before resorting to arbitration, litigation, or some other dispute
resolution procedure. Such mediation shall be held within San Diego County within thirty (30) days
after delivery of written notice requesting same. Each Party shall bear its own costs in such
mediation and shall split 50/50 the costs of the mediator.
b) If a court of competent jurisdiction determines that a Material Failure to
Perform occurred and that such Material Failure to Perform was not the result of the breach of a
Tenant Party or the Guarantor under the Project Documents or any material and adverse interference
by the Hotel Operator (a “Material Failure to Perform Determination”), and the underlying
Material Failure to Perform continues for at least ninety (90) days from the date of the applicable
Material Failure to Perform Determination (the “Cure Period”), then, from and after the date that the
applicable Cure Period expires unless (i) any Public Entity files an action to appeal the Material
Failure to Perform Determination no later than forty five (45) days from the date of the applicable
Material Failure to Perform Determination and diligently prosecutes such action, in which case, from
and after the date that is the later of (x) the date that the applicable Cure Period expires and (y) thirty
30) days after the date that the applicable appellate court of competent jurisdiction awards such
Public Entity(ies) relief); or (ii) the Material Failure to Perform is reasonably capable of cure and the
Public Entities have either (x) cured the Material Failure to Perform, or (y) if the Material Failure to
Perform is not capable of cure within the Cure Period, have commenced taking appropriate steps to
cure such failure and are diligently prosecuting same to completion, then the liability of the
Guarantor in respect of the Guaranteed Obligation(s) with respect to which such Material Failure to
Perform Determination was made shall automatically terminate, the Guarantor shall be automatically
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released from its obligations under this Guaranty with respect to such Guaranteed Obligation(s),
except for any obligations that have accrued and have not been discharged prior to such date, and this
Guaranty shall automatically terminate.
c) If the Hotel Ground Lease terminates due to a Condemnation (as defined in
the Hotel Ground Lease) or any damage to or destruction of the Resort Hotel or any part thereof, as
permitted in the Hotel Ground Lease and in accordance with the terms thereof (the “Hotel Ground
Lease Termination”), then, from and after the date that the Hotel Ground Lease Termination occurs
the “Hotel Ground Lease Termination Date”), the liability of the Guarantor in respect of the
Guaranteed Obligations with respect to the Resort Hotel shall automatically terminate and the
Guarantor shall be automatically released from its obligations under this Guaranty with respect to the
Resort Hotel, except for any obligations that have accrued and have not been discharged prior to the
Hotel Ground Lease Termination Date. If the Convention Center Sublease terminates due to a
Condemnation (as defined in the Convention Center Sublease) or any damage to or destruction of the
Convention Center or any part thereof, in each case, as permitted in the Convention Center Sublease
and in accordance with the terms thereof (the “Convention Center Sublease Termination”), then,
from and after the date that the Convention Center Sublease Termination occurs (the “Convention
Center Sublease Termination Date”), the liability of the Guarantor in respect of the Guaranteed
Obligations with respect to the Convention Center shall automatically terminate and the Guarantor
shall be automatically released from its obligations under this Guaranty with respect to the
Convention Center, except for any obligations that have accrued and have not been discharged prior
to the Convention Center Sublease Termination Date. If the Hotel Ground Lease Termination
occurs, and the Convention Center Sublease Termination occurs, and Guarantor does not have any
amounts owing to the Public Entities under this Guaranty (“Outstanding Payments”), then, from
and after the date that is the later of (x) the Hotel Ground Lease Termination Date, (y) the
Convention Center Sublease Termination Date and (z) the payment to the Public Entities of any
Outstanding Payments, the liability of the Guarantor in respect of the Guaranteed Obligations shall
automatically terminate, the Guarantor shall be automatically released from its obligations under this
Guaranty, except for any obligations that have accrued and have not been discharged prior to the
Hotel Ground Lease Termination Date or the Convention Center Sublease Termination Date,
whichever is later, and this Guaranty shall automatically terminate.
4.3 In the event any payment by RIDA or any other Person to any of the Obligees
that is made to satisfy any of the Guaranteed Obligations is held to constitute a preference, fraudulent
transfer or other voidable payment under any bankruptcy, insolvency or similar Law, or if for any
other reason any of the Obligees are required to refund such payment or pay the amount thereof to
any other party, such payment by RIDA or any other party to the Obligees shall not constitute a
release of Guarantor from any liability hereunder, and this Guaranty shall continue to be effective or
shall be reinstated (notwithstanding any prior release, surrender or discharge by the Obligees of this
Guaranty or of Guarantor), as the case may be, with respect to, and this Guaranty shall apply to, any
and all amounts that were so paid by RIDA or any other Person to satisfy any of the Guaranteed
Obligations and so refunded by the Obligees or paid by the Obligees to another Person (which
amounts shall constitute part of the Guaranteed Obligations), and any interest paid by the Obligees
and any attorneys’ fees, costs and expenses paid or incurred by the Obligees in connection with any
such event.
4.4 It is the intent of Guarantor and the Public Entities that the obligations and
liabilities of Guarantor hereunder are absolute, irrevocable and unconditional under any and all
circumstances and that until the Guaranteed Obligations are fully and finally paid and performed, and
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not subject to refund or disgorgement, but except as set forth in Section 4.10, the obligations and
liabilities of Guarantor hereunder shall not be discharged or released in whole or in part, by any act
or occurrence that might, but for the provisions of this Guaranty, be deemed a legal or equitable
discharge or release of a guarantor.
4.5 [Reserved.]
4.6 Guarantor waives notice of acceptance of this Guaranty, any rights, defenses
and benefits that may be derived from Sections 2787 to 2855, inclusive, of the California Civil Code
or comparable provisions of the Laws of any other jurisdiction, and all other suretyship defenses
Guarantor would otherwise have under the Laws of California or any other jurisdiction.
4.7 No provision or waiver in this Guaranty shall be construed as limiting the
generality of any other provision or waiver contained in this Guaranty. All of the waivers contained
herein are irrevocable and unconditional and are intentionally and freely made by Guarantor.
4.8 This Guaranty may be replaced by a guaranty that is substantially and
materially in the same form as this Guaranty, covers all of the same terms and Guaranteed
Obligations as this Guaranty whether arising prior to, on or after the date it becomes effective, does
not affect the public financing of the Convention Center and Developer’s Phase 1A Infrastructure
Improvements, and is executed by a Person (such Person, a “Replacement Guarantor”) that
a) holds, directly or indirectly, not less than ten percent (10%) of the membership interests in RIDA,
b) when taken together with (i) each Other Guarantor under an Other Guaranty that is not being
replaced and (ii) each new Other Guarantor under a new Other Guaranty, has a Guarantor Net Worth
of at least the Minimum Net Worth, (c) when taken together with (i) each Other Guarantor under an
Other Guaranty that is not being replaced and (ii) each new Other Guarantor under a new Other
Guaranty, has a Guarantor Liquidity of at least the Minimum Liquidity, (d) is not a Prohibited
Person, (e) assumes any liabilities that exist or may exist under the Guaranty (including without
limitation those arising under Sections 1.3 and 6, unless such liabilities are discharged prior to the
effectiveness of the Replacement Guaranty), and (f) is acceptable to each of the Public Entities in
their reasonable discretion (collectively, the “Replacement Guaranty”). If (x) all of the conditions
and requirements set forth in this Section 4.8, including without limitation, clauses (a) through (f)
above are satisfied to the reasonable satisfaction of each of the Public Entities, and (y) the proposed
replacement Guarantor is reputable (which shall mean the absence of reputations for dishonesty,
criminal conduct or association with criminal elements – “reputable” shall not mean “prestigious”,
nor shall the determination of whether one is reputable involve considerations of personal taste or
preference), and has no reputation for, either discriminatory employment practices which violate any
Laws or non-compliance with applicable Environmental Laws (as defined in the Hotel Ground
Lease), then each of the Public Entities shall administratively grant consent to any such proposed
Replacement Guarantor. If Guarantor requests in writing that the Public Entities consent to a
Replacement Guarantor, and after receipt of all information set forth in this Section 4.8, all of the
Public Entities do not within forty-five (45) days after such request provide a response consenting to
the request, then such consent will be deemed rejected and upon request, the Public Entities shall
provide a reasonably detailed explanation of the reason for rejecting such request. Guarantor’s
request to the Public Entities to consent to a Replacement Guaranty shall include financial statements
with respect to such prospective Replacement Guarantor and a certification by such prospective
Replacement Guarantor (with any supporting documentation reasonably requested by the Public
Entities) that: (1) such proposed Replacement Guarantor holds, directly or indirectly, not less than
ten percent (10%) of the membership interests in RIDA, (2) such proposed Replacement Guarantor,
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when taken together with (i) each Other Guarantor under an Other Guaranty, if any, that is not being
replaced and (ii) each new Other Guarantor, if any, under a new Other Guaranty, has a Guarantor Net
Worth of at least the Minimum Net Worth, (3) such proposed Replacement Guarantor, when taken
together with (i) each Other Guarantor under an Other Guaranty, if any, that is not being replaced and
ii) each new Other Guarantor, if any, under a new Other Guaranty, has a Guarantor Liquidity of at
least the Minimum Liquidity and (4) such proposed Replacement Guarantor is not a Prohibited
Person.
4.9 (a) Notwithstanding anything in this Guaranty to the contrary, if any
Permitted Lender has completed any foreclosure with respect to any Permitted Financing
Encumbrance (as defined in the Hotel Ground Lease; for purposes of this Section 4.9, each
capitalized term used in this Section 4.9 and not defined in this Section 4.9 shall have the meaning
assigned thereto in the Hotel Ground Lease) as permitted under the Hotel Ground Lease, then, upon
the earlier to occur of (i) the date when any Project Document terminates for any reason in
accordance with its terms or (ii) the date when any Obligee or any Foreclosure Purchaser delivers
notice of its intent to terminate any Project Document in accordance with its terms (such date, a
Trigger Date”), the Obligees shall promptly and, in no event later than five (5) Business Days after
the Trigger Date, notify (such notice, a “Project Document Termination Notice”) Guarantor of
such termination or delivery of such notice, as the case may be. Guarantor shall have the right to, no
later than thirty (30) days after receipt of a Project Document Termination Notice (such period, the
Response Period”), deliver notice to each Obligee of Guarantor’s undertaking to continue to
perform Guarantor’s obligations under Section 1.1(d) and Section 1.1(e) and Guarantor’s intention to
meet and confer to renegotiate in good faith each Project Document in accordance with this Section
4.9 (such notice, a “Meet and Confer Notice”). If Guarantor does not deliver a Meet and Confer
Notice prior to the end of the Response Period, then Guarantor’s obligations hereunder shall continue
unchanged.
b) If Guarantor (i) delivers a Meet and Confer Notice prior to the end of the
Response Period and (ii) promptly commences and continues to perform its obligations under Section
1.1(d) and Section 1.1(e), then the Parties shall promptly and, in no event later than fifteen (15) days
after delivery of the Meet and Confer Notice, commence to meet and confer to renegotiate in good
faith each Project Document in accordance with this Section 4.9 (the “Meet and Confer Process”)
such renegotiated Project Document, a “Replacement Project Document”). Within five (5) days
after Guarantor delivers the Meet and Confer Notice, Guarantor shall use commercially reasonable
efforts to (x) in the case of the Hotel Ground Lease, secure the Premises and Improvements (as both
are defined in the Hotel Ground Lease) (collectively, the “Hotel Site”) and (y) in the case of the
Sublease and Project Implementation Agreement, secure the Facility and the Developer’s Phase 1A
Improvements (as both are defined in the Project Implementation Agreement) (collectively, the “PIA
Sublease Site”). In each case, to “secure” either the Hotel Site or PIA & Sublease Site, shall
mean such measures that a commercially reasonable developer would implement to protect a
construction site from damage or destruction and entrance by other parties. If Guarantor fails to
secure the Hotel Site or PIA & Sublease Site as provided in the aforementioned sentence, the Port
District shall have the right to secure the Hotel Site and the Port District, the City, and the Authority
shall have the right to secure the PIA & Sublease Site. The Meet and Confer Process shall continue
for an initial period of ninety (90) days (the “Initial Meet and Confer Period”). If the Parties do not
agree on Replacement Project Documents prior to the end of the Initial Meet and Confer Period and
each Party determines in its reasonable discretion that the Parties may reach an agreement on
Replacement Project Documents during an additional ninety- (90-) day period, then the Initial Meet
and Confer Period shall be extended for additional ninety (90) days (the “Extended Meet and
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Confer Period”, and the Initial Meet and Confer Period, together with (if applicable) the Extended
Meet and Confer Period, the “Meet and Confer Period”). Commencing on the Trigger Date and
ending on the earlier of (x) the end of the Meet and Confer Period or (y) if Guarantor does not timely
deliver a Meet and Confer Notice, the end of the Response Period, Guarantor’s obligations under
Section 1.1 (other than Section 1.1(d) and Section 1.1(e)) and Section 1.3 shall be suspended, no
Obligee shall enter into, or permit entering into, any agreement in replacement of any Project
Document other than any Replacement Project Document, the applicable Obligee(-s) shall not grant
any real property interest in the Premises (as defined in any Project Document), and the ownership of
the Improvements (as defined in any Project Document) shall not vest in any Obligee or any third
party (other than pursuant to any Permitted Financing Encumbrance).
c) During the Meet and Confer Period, the Parties shall use commercially
reasonable efforts renegotiate the Project Documents in good faith so that, to the extent practicable,
each Replacement Project Document is on substantially the same terms as the applicable Project
Document being replaced except that the Replacement Project Documents will reflect modifications
as agreed among the Parties to (i) reflect adjustments to the timetable for Completion of the Project
as defined in the PIA) and Completion of Tenant’s Initial Project Improvements and the Convention
Center Improvements (as defined in the Hotel Ground Lease), (ii) reflect adjustments to the term of
such Project Document and/or rent payments thereunder in order to compensate the applicable
Obligee(-s) for (x) unreimbursed costs incurred by such Obligee(-s) as a result of RIDA’s failure to
perform its obligations under such Project Document and/or (y) lost profits and opportunity costs
incurred by such Obligee(-s) in connection with any delay in Completion of the Project (as defined in
the PIA) or Completion of Tenant’s Initial Project Improvements and the Convention Center
Improvements (as defined in the Hotel Ground Lease), (iii) provide each Party with reasonably
forecasted economic returns that are not worse than the economic returns forecasted for such Party as
of the date hereof and (iv) include any other terms to which the Parties may agree. The terms of this
Guaranty may also be renegotiated during the Meet and Confer Period in order to conform to, and
provide adequate security for, the replacement developer’s performance of its obligations under the
Replacement Project Documents.
d) Each Party may terminate the Meet and Confer Process in its sole discretion if
i) (A) the Parties do not agree on Replacement Project Documents prior to the end of the Initial
Meet and Confer Period and such Party determines in its reasonable discretion that the Parties will
not reach an agreement on Replacement Project Documents during the Extended Meet and Confer
Period or (B) the Parties do not reach an agreement on Replacement Project Documents prior to the
end of the Extended Meet and Confer Period and (ii) such Party has negotiated Replacement Project
Documents in good faith. If the Meet and Confer Process is terminated pursuant to this clause (d),
then Guarantor’s obligations hereunder shall be reinstated and this Guaranty shall continue in full
force and effect. If the Parties reach agreement on Replacement Project Documents during the Meet
and Confer Period, then the applicable Parties shall promptly enter into such Replacement Project
Documents and, subject to the terms of the Replacement Project Documents, Guarantor’s obligations
hereunder, as may be modified during Meet and Confer period, shall be reinstated and this Guaranty,
as modified, shall continue in full force and effect.
e) The Parties agree upon the written request of any Party to submit any dispute
regarding the Meet and Confer Process to mediation administered by the American Arbitration
Association under its Commercial Mediation Procedures before resorting to litigation or some other
dispute resolution procedure. Such mediation shall be held within San Diego County within thirty
30) days after delivery of written notice requesting same. Each Party shall bear its own costs in such
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mediation. RIDA and the Obligees will each pay fifty percent (50%) of the costs of the mediator. No
Party shall be entitled to any monetary damages in connection with any dispute with respect to its
obligations to negotiate in good faith during the Meet and Confer Period, or its decision not to enter
into Replacement Project Documents. During such mediation or another dispute resolution
procedure, Guarantor shall continue to perform its obligations under Section 1.1(d) and Section
1.1(e).
4.10 Provided that there are no Outstanding Payments and without limiting Section
4.2(b), the liability of Guarantor in respect of the Guaranteed Obligations shall automatically
terminate and Guarantor shall be automatically released from its obligations under this Guaranty and
this Guaranty shall automatically terminate upon the earliest of the following dates: (i) the date that is
six (6) months after the Completion of the Project (as defined in Section 1.1), (ii) the effective date of
a Replacement Guaranty pursuant to and in accordance with Section 4.8 hereof where the
Replacement Guarantor has replaced the Guarantor and assumed all of Guaranteed Obligations, and
iii) the date on which all of the following has occurred: (x) Hotel Ground Lease Termination Date
and (y) the Convention Center Sublease Termination Date. Provided that the necessary conditions
under this Section 4.10 have been satisfied, each Public Entity shall execute an acknowledgement
that this Guaranty has terminated promptly after the receipt by the Public Entities of a written request
therefore from Guarantor.
5. REPRESENTATIONS AND WARRANTIES. Guarantor represents and warrants
to the Public Entities that:
5.1 Authority; Execution, Delivery and Performance of Guaranty. Guarantor
has all requisite power and authority to execute, deliver and perform all of its obligations under this
Guaranty. The execution, delivery and performance by Guarantor of all of the obligations under this
Guaranty has been duly authorized by all necessary action and do not and will not:
a) result in or require the creation or imposition of any lien, right of
others, or other encumbrance of any nature (other than under this Guaranty) upon or with respect to
any property now owned or leased or hereafter acquired by the Guarantor; or
b) violate any provision of any Laws; or
c) result in a breach of, constitute a default under, or cause or permit the
acceleration of any obligation owed under any agreement or instrument to which Guarantor is a party
or by which Guarantor or any of its property is bound or affected; or
d) require any consent or approval not heretofore obtained; or
e) violate any provision of, or require any consent under, any operating
agreement, certificate of formation, partnership agreement, articles of incorporation, by-laws or any
other governing document or charter applicable to Guarantor.
5.3 Enforceability. This Guaranty, when executed and delivered, shall constitute
the valid and binding obligation of Guarantor, enforceable in accordance with its terms, subject to
bankruptcy laws and other Laws and equitable principles affecting creditors rights generally if
applicable to Guarantor.
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5.4 Financial Information. The statement of financial condition made available
to the Public Entities for review with respect to the Guarantor in connection with the Project
Documents and this Guaranty, and to demonstrate that Guarantor is a Qualified Guarantor to the
Public Entities, is a true, complete, and correct copy of such statement, such statement has been
prepared in accordance with the Guarantor’s standard accounting principles, and fairly and accurately
represents the financial condition of the Guarantor in accordance with such accounting principles, as
of the date it was delivered to the Public Entities. As of the date hereof, there has been no material
adverse change in the financial condition of Guarantor since the date of such statement of financial
condition and Guarantor remains in compliance with the Guarantor Net Worth and Guarantor
Liquidity requirements set forth in Section 2.2 hereof.
5.5 No Default. To the best of Guarantor’s knowledge, there is no condition,
event, act or omission that exists which, with the giving of notice or the passage of time, or both,
would be an Event of Default under the Project Documents.
6. REMEDIES. If Guarantor shall fail to perform or satisfactorily commence
performance of its obligations hereunder within fourteen (14) days of a demand by any of the Public
Entities for performance thereof, the Public Entities shall have the following remedies, in addition to
and cumulative of any other remedies it may have hereunder, under the Project Documents or at law
or in equity:
a) [reserved;]
b) at its option and without any obligation to do so, complete all or any portion
of the Project either before or after the termination of the Project Documents or before or after
exercising any other remedy against RIDA or Guarantor, with such changes or modifications in the
Project Plans as are necessary for completion of the Project. The amount of any and all expenditures
made by the Public Entities for the foregoing purposes shall be immediately due and payable to the
Public Entities by Guarantor; and
c) from time to time and without first requiring performance on the part of
RIDA and without being required to exhaust any or all security held by the Public Entities, to look to
and require performance by Guarantor of any obligation on the part of Guarantor to be performed
pursuant to the terms of this Guaranty by action at law or in equity, or both.
7. NOTICE OF CERTAIN EVENTS. Guarantor shall give written notice to each of
the Public Entities promptly (and in any event within five (5) days) after Guarantor learns of any of
the following:
a) the institution of any litigation or legal or administrative proceeding or
investigation which has a reasonable probability of being adjudicated adversely to RIDA, Guarantor,
the Project or any of RIDA’s or Guarantor’s properties and which would reasonably be expected, if
so adjudicated, to materially and adversely affect RIDA, Guarantor or the Project, or cause Guarantor
to no longer be a Qualified Guarantor; and
b) the occurrence of any Event of Default or event or condition which, with the
giving of notice or the passage of time, or both, would be an Event of Default under the Project
Documents.
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8. REASONABLENESS AND EFFECT OF WAIVERS. Guarantor warrants and
agrees that each of the waivers set forth in this Guaranty is made with full knowledge of its
significance and consequences and that, under the circumstances, the waivers are reasonable and not
contrary to public policy or Laws. If any of such waivers are determined to be contrary to any
applicable Laws or public policy, such waivers shall be effective only to the maximum extent
permitted by Laws.
9. MISCELLANEOUS PROVISIONS.
9.1 Costs of Enforcement. The prevailing party in any legal proceedings
concerning the enforcement of this Guaranty shall be entitled to recovery of its costs and attorneys’
fees from the party that did not prevail.
9.2 Binding Effect. This Guaranty and all the terms, provisions and conditions
hereof shall be binding upon the Guarantor and its heirs, legal representatives, successors and
assigns, and this Guaranty shall inure to the benefit of the Public Entities and their successors and
assigns and all subsequent holders of the Guaranteed Obligations.
9.3 Financial Information. Guarantor shall deliver to the Public Entities, as
soon as available, but in no event later than one hundred twenty (120) days after the end of
Guarantor’s fiscal year-end, a copy of Guarantor’s statement of financial condition, in the form
attached hereto as Exhibit A, as of the end of such calendar year, together with a certification that
such statement (1) is complete and correct to the best of Guarantor’s knowledge, (2) presents the
financial condition of the entity, (3) presents all liabilities that are required to be reflected, and those
liabilities are presented at historical cost, and (4) is prepared in accordance with the Guarantor’s
standard accounting principles. Additionally, Guarantor shall make available for inspection (but not
copying) by any of the Public Entities such other information regarding Guarantor’s assets, liabilities
and financial condition generally as (a) the Public Entities may from time to time reasonably request
so that the Public Entities can verify the veracity of the certifications set forth in the preceding
sentence and (b) exists (unless generation of such financial information will not result in any material
additional expense to the Guarantor, in which case the Guarantor will request that such financial
information be generated and provided to the Public Entities), at the Project, RIDA’s main business
office, any of Hotel Operator’s (as defined in the Hotel Ground Lease) business offices in San Diego
County, California or at such other location in San Diego County, California as is reasonably
acceptable to the Public Entities, upon such Public Entity’s written notice, which shall specify in
reasonable detail the financial information the Public Entities are requesting be made available for
inspection and the date when such inspection will take place, which date shall not be less than ten
business days after the date of such notice. Notwithstanding the foregoing, if any of the Public
Entities are required to include any of the financial information shared by Guarantor in connection
with its respective board or council meetings, Guarantor agrees to provide the Public Entities with a
redacted version of such financial information at no cost to the Public Entities and a certification that,
except for such redactions, such redacted version of financial information is a true, correct, and
complete copy of the unredacted version of the financial information reviewed by the Public Entities.
9.4 Governing Law. This Guaranty shall be governed by, and construed in
accordance with, the laws of the State of California.
9.5 Notices. All notices demands, approvals and other communications provided
for herein shall be in writing and shall be delivered by overnight air courier, personal delivery or
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registered or certified U.S. mail with return receipt requested, postage prepaid, to the appropriate
Party at its address as follows:
If to Port District:
Executive Director
San Diego Unified Port District
Administration Building
3165 Pacific Highway
San Diego, California 92101-1128
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
With copy to:
Director, Real Estate
San Diego Unified Port District
Administration Building
3165 Pacific Highway
San Diego, California 92101-1128
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
With a copy to:
Port Attorney
San Diego Unified Port District
3165 Pacific Highway
San Diego, California 92101-1128
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
If to City:
City of Chula Vista
Attention: City Manager
276 Fourth Avenue
Chula Vista, California 91910
With a copy to:
City Attorney
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
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If to the Authority:
Chula Vista Bayfront Facilities Financing Authority
PO Box 5296
Chula Vista, CA 91912
Attention: Executive Director
With copy to:
City of Chula Vista
Attention: City Manager
276 Fourth Avenue
Chula Vista, California 91910
With a copy to:
City Attorney
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
With copy to:
Executive Director
San Diego Unified Port District
Administration Building
3165 Pacific Highway
San Diego, California 92101-1128
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
With copy to:
Director, Real Estate
San Diego Unified Port District
Administration Building
3165 Pacific Highway
San Diego, California 92101-1128
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
With a copy to:
Port Attorney
San Diego Unified Port District
3165 Pacific Highway
San Diego, California 92101-1128
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
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If to Guarantor:
RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Ira Mitzner
With copy to:
RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Luke Charlton
and
Latham & Watkins
12670 High Bluff Drive
San Diego, CA 92130
Attention: Steven Levine
If to Administrative Agent:
JPMorgan Chase Bank, National Association
Attention: James G. Millard
383 Madison Avenue, 3rd Floor (NY1-M165)
New York, NY 10179
Telephone: 212-270-2198
E-mail: james.g.millard@jpmorgan.com
With copy to:
Shawn Laljit at shawn.laljit@jpmchase.com
Addresses for notice may be changed from time to time by written notice to all other Parties. Any
communication given by mail will be effective upon the earlier of (a) three (3) business days
following deposit in a post office or other official depository under the care and custody of the
United States Postal Service or (b) actual receipt, as indicated by the return receipt; if given by
telephonic facsimile, when sent; and if given by personal delivery or by overnight air courier, when
delivered to the appropriate address set forth above.
9.6 No Waiver. Any failure by the Public Entities to insist, or any election by
the Public Entities not to insist, upon strict performance by Guarantor of any of the terms, provisions
or conditions of this Guaranty shall not be deemed to be a waiver of the same or of any other terms,
provisions or conditions thereof.
9.7 Severability. If any provision of this Guaranty or the application thereof to
any Person or circumstance shall be invalid or unenforceable, then, neither the remainder of this
instrument nor the application of such provision to other persons or circumstances shall be affected
thereby, but rather shall be enforced to the greatest extent permitted by Laws.
Page 515 of 761
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9.8 Entire Agreement and Modification. This Guaranty contains the entire
agreement between the Guarantor and the Public Entities relating to the subject matter hereof, except
for the Project Plans and the Project Documents. This Guaranty may not be amended, revised,
waived, discharged, released or terminated orally, but only by a written amendment, revision, waiver,
discharge, release or termination. Any alleged amendment, revision, waiver, discharge, release or
termination which is not so documented shall not be effective as to any Party to this Guaranty.
9.9 Further Assurances. Each Party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other Party may reasonably request in
order to carry out the intent and accomplish the purposes of this Guaranty and the consummation of
the transactions contemplated hereby.
9.9 Electronic Signature. The words “execution”, “execute”, “signed”,
signature”, and words of like import in this Guaranty or in or related to any document signed or to
be signed in connection with this Guaranty and the transaction contemplated hereby shall be deemed
to include electronic signatures, contract formations on electronic platforms approved by the parties
hereto, or the keeping of such electronic signatures and electronic contracts in electronic form, each
of which shall be of the same legal effect, validity or enforceability as a manually executed signature
or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided
for in any applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the California Uniform Electronic Transaction Act, or any other similar state laws
based on the Uniform Electronic Transactions Act.
Signature Page Follows.]
Page 516 of 761
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IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first written
above.
GUARANTOR
Print Name:
Print Title:
Page 517 of 761
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Accepted and agreed by:
SAN DIEGO UNIFIED PORT DISTRICT APPROVED AS TO FORM AND LEGALITY:
Print Name: Thomas A. Russell, General Counsel
Print Title:
CHULA VISTA BAYFRONT FACILITIES APPROVED AS TO FORM AND LEGALITY:
FINANCING AUTHORITY
Print Name: Thomas A. Russell, Co-Counsel, General Counsel
Print Title: San Diego Unified Port District
Glen R. Googins, Co-Counsel, City Attorney
City of Chula Vista
CITY OF CHULA VISTA
Print Name:
Print Title:
RIDA CHULA VISTA, LLC
Print Name:
Print Title:
California Contractor License Number: 1039979
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
Print Name:
Print Title:
Page 518 of 761
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EXHIBIT A
FORM OF STATEMENT OF FINANCIAL CONDITION
MFO Holding Company, LLC
As of __________ ___, 2022
Prepared: ___________ ___, 2022
Guarantor hereby certifies that the accompanying Statement of Financial Condition:
1. Is complete and correct to the best of my knowledge;
2. Presents the financial condition of the entity;
3. Presents all liabilities that are required to be reflected, and those liabilities are presented at
historical cost;
4. Is prepared in accordance with the Guarantor’s accounting principles, as reviewed and
approved by the Public Entities.
MFO Holding Company, LLC, sole
member, Ira M. Mitzner
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STATEMENT OF FINANCIAL CONDITION
MFO Holding Company, LLC
As of ____________ ___, 2022
ASSETS ____________ ___, 2022
CASH, STOCKS AND TRADEABLE MARKET CASH EQUIVALENTS,
representing MFO Holding Company’s ownership interest
OPERATING / MONEY MARKET / INVESTMENT ACCOUNTS
List of CASH ACCOUNTS
TOTAL CASH, TRADEABLE STOCKS AND CASH EQUIVALENTS $
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Statement of Financial Condition
Page 2
REAL ESTATE, representing the estimated fair value of MFO Holding Company’s equity interest _________ __, 2022
Real Estate Entity/Property
TOTAL REAL ESTATE $
TOTAL ASSETS $
LIABILITIES
Bank Loans Outstanding
TOTAL LIABILITIES $
NET ASSETS $
Page 521 of 761
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I-1
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Exhibit I
Listing of Real Estate Agreements
1. Amended, Restated and Combined Lease between the San Diego Unified Port
District (the “District”) and Marine Group Boat Works, LLC for property at the North Side of G
Street at the terminus of both Quay Avenues and Sandpiper Way in Chula Vista, which lease is on
file in the Office of the District Clerk as Document No. 54509, as amended, restated, and modified as
of the Effective Date. Lease expires on January 31, 2030, with an eleven year option to extend to
January 31, 2041.
2. Lease between the District and Chula Vista Marina, LP, dba Chula Vista Marina, for
property located at 550 Marina Parkway in Chula Vista which lease is on file in the Office of the
District Clerk as Document No. 14244, as amended, restated, and modified as of the Effective Date.
Lease expires on November 30, 2030.
3. Lease between the District and SHM South Bay, LLC, for property located at 640
Marina Parkway in Chula Vista which lease is on file in the Office of the District Clerk as Document
No. 73446, as amended, restated, and modified as of the Effective Date and expiring on June 30,
2032.
4. Lease between the District and Sun Chula Vista Bayfront RV LLC for property
located at 825 E Street in Chula Vista (Costa Vista RV Park) which lease is on file in the Office of
the District Clerk as Document No. 70407 (“RV Park Lease”), as amended, restated, and modified as
of the Effective Date and expiring on September 16, 2085.
Page 522 of 761
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Exhibit J
Total Convention Center Development Fee
Effective Date: $2,520,000 (the “Initial Development Fee Payment”)
On the first day of each full calendar month after the Effective Date for a total of thirty-six (36)
months: $175,000
Completion of the Convention Center: $1,260,000
Twelve months after Completion of the Convention Center: $2,520,000*
2,520,000 final payment to come from the General Contingency line item for the Hotel and
Parking Improvements budget if remaining funds are available twelve months following the
Completion of the Convention Center.
Page 523 of 761
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K-1-1
4825-3218-1203/024036-0079
Exhibit K-1
Form of Developer’s Phase 1A Payment Request
202[_]
Chula Vista Bayfront Facilities Financing Authority
PO Box 5296
Chula Vista, CA 91912
Attention: [Executive Director]
Re: Developer’s Phase 1A Payment Request No. [___] under Project Implementation Agreement
the “Agreement”), dated as of May 26, 2022, by and among the City of Chula Vista, a
chartered municipal corporation (“City”), the Bayfront Project Special Tax Financing
District, a financing district established and existing pursuant to Chula Vista Municipal Code
Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance (the
Financing District”), the San Diego Unified Port District, a public corporation (the “Port
District”), the Chula Vista Bayfront Facilities Financing Authority (the “Authority”), a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise
of Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited
liability company (“Developer”).
Payment Request of $[_________]
Requested Payment Date: [_________], 20[__]1
Ladies and Gentlemen:
The Developer submits this Developer’s Phase 1A Payment Request No. [___] (the
Payment Request”) pursuant to Section 9.1.2 of the Agreement with respect to the Developer’s
Phase 1A Infrastructure Improvements. Capitalized terms used herein without definition shall have
the meanings assigned in the Agreement.
The Developer hereby requests that the Authority, on the requested payment date set forth
above (the “Requested Payment Date”), direct the Trustee to transfer $ [_____] (the “Requested
Payment Amount”) from the [Account] to the [Account]. The Requested Payment Amount is
calculated as set forth on Schedule 1.
In connection with the requested payment, the Developer hereby represents, warrants and
certifies as of the date hereof as follows:
a) Schedule 1 accurately reflects for each line item in the Developer’s Phase 1A
Infrastructure Improvements Budget, (i) the current budget amount, (ii) amounts previously funded
by the Authority, (iii) the Requested Payment Amount, (iv) hard costs incurred, including retainage
and (v) retainage withheld.
1 To be not less than 10 business days after the date of the Developer’s Phase 1A Payment Request.
Page 524 of 761
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b) Schedule 2 accurately lists, for the Requested Payment Amount, each Person to
whom any of the Developer’s Phase 1A Infrastructure Improvements Costs have been or will be paid
and, for each line item in such schedule and for each such Person, the following: (i) the name of the
payee paid or to be paid, (ii) the invoice date, invoice number and amount that Developer has paid to
such Person or intends to pay to such Person during the next 30 days, (iii) a description of the
purpose of such payment, specifying the line item relating to each such payment.
c) Schedule 3 accurately lists, since inception of Developer’s Phase 1A Infrastructure
Improvements work, each Person to whom any of the Developer’s Phase 1A Infrastructure
Improvements Costs have been or will be paid and, for each line item in such schedule and for each
such Person, the following: (i) the name of the payee paid or to be paid, (ii) the invoice date, invoice
number and amount that Developer has paid to such Person or intends to pay to such Person during
the next 30 days, (iii) a description of the purpose of such payment, specifying the line item relating
to each such payment, (iv) amounts eligible for reimbursement under the Sewer Agreement,
v) amounts eligible for credit under the BFDIF Program, (vi) amounts to be funded from other
sources and (vii) the amounts that have been expended and applied to pay Developer’s Phase 1A
Infrastructure Improvements Costs in accordance with Contract Documents and the Agreement (or,
with respect to the Early Work Costs, in accordance with the Early Work Agreement), except for
and amounts paid in respect of the Stipulated Developer’s Phase 1A Infrastructure
Improvements Overhead Amount. The amounts listed in Schedule 3 do not include any Non-Project
Costs or Excluded Costs. The information set forth in Schedule 3 as noted above is true, correct and
complete in all material respects.
d) The Developer has delivered or caused to be delivered to the Authority:
i) copies of true and complete invoices that have been tendered for all
Developer’s Phase 1A Infrastructure Improvements Costs pursuant to any Payment Request, and
ii) statutory lien/stop payment notice conditional waivers and releases associated
with all work performed, or supplies provided, for the Developer’s Phase 1A Infrastructure
Improvements and for which payment is requested in the appropriate statutory form, other than
Excluded Mechanics Lien Waivers, and
iii) copies of all change orders executed prior to the date of this Payment
Request.
e) To Developer’s actual knowledge, after inquiring with Developer’s architect or
engineer who has a representative at the Project Site, the construction performed for the Developer’s
Phase 1A Infrastructure Improvements as of the date hereof has been performed substantially in
accordance in all material respects with the Approved Drawings and Specifications with respect to
the Developer’s Phase 1A Infrastructure Improvements, or to the extent any such construction has
not been performed substantially in accordance in all material respects with the Approved Drawings
and Specifications, the amount to be disbursed under this payment request has been reduced by
pursuant to the Architect’s Certificate (as defined below) to reflect the reasonably estimated
cost of causing such construction to be performed substantially in accordance in all material respects
with the Approved Drawings and Specifications with respect to the Developer’s Phase 1A
Infrastructure Improvements.
Page 525 of 761
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f) To the actual knowledge of Developer (after enquiring with Developer’s General
Contractor), except as described in (e) above, no work or component of work has been rejected or
disapproved by an inspector or other authorized representative of the City’s building or public works
departments or a stormwater inspector representing the Port District.
g) The amount of the Payment Request reflects a reduction of $[_____], being the
amount for which the Developer does not intend to pay any General Contractor or any Subcontractor.
h) The Developer’s Phase 1A Infrastructure Improvements Budget presently in effect is
dated [__________] [and has not been amended] [and includes all amendments through Developer’s
Phase 1A Infrastructure Improvements Budget Amendment No. [___]]. Said budget (i) is based on
reasonable assumptions as to all legal and factual matters material to the estimates set forth therein,
ii) has been prepared in good faith and with due care, (iii) accurately sets forth, for each line item in
the Developer’s Phase 1A Infrastructure Improvements Budget, the total costs anticipated to be
incurred to achieve Completion, and (iv) fairly represents in all material respects the Developer’s
reasonable expectation as to the matters covered thereby as of its date.
i) As of the date hereof, no Event of Default exists.
j) As of the date hereof, Developer has complied with all applicable provisions of
Section 7.2.3.1 of the Agreement.
k) [__] months have passed since the Commencement Date, and as such the amount of
the Developer’s Phase 1A Project Administration Fee that has accrued as of the date hereof $[___].
Attached to this Payment Request as Exhibit 1 is a certificate from the Architect (the
Architect’s Certificate”).
SIGNATURE PAGE FOLLOWS]
Page 526 of 761
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K-1-4
4825-3218-1203/024036-0079
IN WITNESS WHEREOF, the undersigned has executed this Developer’s Phase 1A
Payment Request as of this [___] day of [_________], 202[_].
DEVELOPER
limited liability company
By: *
Page 527 of 761
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K-1-5
4825-3218-1203/024036-0079
Schedule 1 to Developer’s Phase 1A Payment Request
Line Description Amount
1 The Developer’s Phase 1A Infrastructure Improvements
Costs incurred or to be incurred by Developer and for
which Developer has made or intends to make actual
payment prior to the next Developer’s Phase 1A
Payment Request:
2 The Stipulated Developer’s Phase 1A Infrastructure
Improvements Overhead Amount that has accrued as of
the date of the Developer’s Phase 1A Payment Request:
3 Total of Lines 1 and 2: $
Certificate:
the Developer’s Phase 1A Contract Sum:
Contractor or any Subcontractor (except to the extent the
applicable work has been performed by others the
7 Total of Lines 4, 5 and 6: $
Page 528 of 761
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K-1-6
4825-3218-1203/024036-0079
Schedule 2 to Developer’s Phase 1A Payment Request
See attached]
Page 529 of 761
City of Chula Vista - City Council
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RIDA Chula Vista, LLC - Phase 1A Infrastructure Schedule 2A
DRAW - SUMMARY
Item Description Original Budget Previous Adjustments Current Adjustments Note Revised Budget Previous Payments This Period Costs Total Paid To Date
Hard Costs Including
Retainage
Total
Complete Balance to Finish Retainage
A-1 HARD CONSTRUCTION COSTS 28,075,263.00$ -$ 28,075,263.00$ -$ -$ -$ -$ 0.00% 28,075,263.00$ -$
A-2 Welded Steel Pipe Option 1,214,189.00$ -$ 1,214,189.00$ -$ -$ -$ -$ 0.00% 1,214,189.00$
A-3 Construction Contingency 799,822.00$ -$ 799,822.00$ -$ -$ -$ -$ 0.00% 799,822.00$ -$
B ARCHITECTURE, ENGINEERING FEES 931,562.00$ -$ 931,562.00$ -$ -$ -$ 0.00% 931,562.00$
C STIPULATED DEVELOPER'S OVERHEAD AMOUNT/G&A 3,000,000.00$ -$ 3,000,000.00$ -$ -$ -$ 0.00% 3,000,000.00$
D SDG&E DRY UTILITIES 399,917.00$ -$ 399,917.00$ -$ -$ -$ 0.00% 399,917.00$
E BUILDERS RISK, GL AND WC INSURANCE 435,000.00$ -$ 435,000.00$ -$ -$ -$ 0.00% 435,000.00$
F PERMIT FEES & PLAN CHECK FEES & INSPECTION FEES 1,207,877.00$ -$ 1,207,877.00$ -$ -$ -$ 0.00% 1,207,877.00$
G IMPACT FEES / CONNECTION FEES -$ -$ -$ -$ -$ -$ 0.00% -$
H CONTINGENCY 4,395,088.00$ -$ 4,395,088.00$ -$ -$ -$ 0.00% 4,395,088.00$
I PAYMENT BONDS 136,384.00$ -$ 136,384.00$ -$ -$ -$ 0.00% 136,384.00$
J LEGAL & OTHER PROFESSIONAL FEES -$ -$ -$ -$ -$ -$ 0.00% -$
K PROPOSED GATEWAY SIGN 110,000.00$ -$ 110,000.00$ -$ -$ -$ 0.00% 110,000.00$
L EARLY WORK 859,344.00$ -$ 859,344.00$ -$ -$ -$ 0.00% 859,344.00$
M PROJECT ADMINISTRATION FEE 737,109.00$ -$ 737,109.00$ -$ -$ -$ 0.00% 737,109.00$
TOTAL PHASE 1A PROJECT COST:42,301,555.00$ -$ -$ 42,301,555.00$ -$ -$ -$ -$ 0.00% 42,301,555.00$
BUDGET DRAFT s NOT FINAL) PAYMENTS SUMMARY
Page 1 of 1Page 530 of 761
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Schedule 2B
Code Kind of Work Invoice Date Invoice # Vendor Description Amount Total Dt Pd Ck# Amounts Unpaid
A-1 HARD CONSTRUCTION COSTS -$
A-1-1 -$
A-1-2 -$
A-1-3 -$
A-2 Welded Steel Pipe Option -$
A-2-1 -$
A-2-2 -$
A-2-3 -$
A-3 Construction Contingency -$
A-3-1 -$
A-3-2 -$
A-3-3 -$
B ARCHITECTURE, ENGINEERING FEES -$
B-46 -$
B-47 -$
B-48 -$
B-49 -$
B-50 -$
C STIPULATED DEVELOPER'S OVERHEAD AMOUNT/G&A -$
C-1 -$
C-2 -$
C-3 -$
D SDG&E DRY UTILITIES -$
D-1 -$
D-2 -$
D-3 -$
E BUILDERS RISK, GL AND WC INSURANCE -$
E-1 -$
E-2 -$
E-3 -$
F PERMIT FEES & PLAN CHECK FEES & INSPECTION FEES -$
F-4 -$
F-5 -$
F-6 -$
G IMPACT FEES / CONNECTION FEES -$
G-1 -$
G-2 -$
G-3 -$
H CONTINGENCY
H-1
I PAYMENT BONDS -$
I-1 -$
I-2 -$
I-3 -$
J LEGAL & OTHER PROFESSIONAL FEES -$
J-1 -$
J-2 -$
J-3 -$
K PROPOSED GATEWAY SIGN -$
K-1 -$
RIDA Chula Vista, LLC - Phase 1A Infrastructur
Detail Invoice Costs Incurred, Draw 8
Page 1 of 2Page 531 of 761
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Schedule 2B
Code Kind of Work Invoice Date Invoice # Vendor Description Amount Total Dt Pd Ck# Amounts Unpaid
RIDA Chula Vista, LLC - Phase 1A Infrastructur
Detail Invoice Costs Incurred, Draw 8
K-2 -$
K-3 -$
L EARLY WORK -$
L-1 -$
L-2 -$
L-3 -$
M PROJECT ADMINISTRATION FEE -$
M-1 -$
M-2 -$
M-3 -$
TOTAL PHASE 1A PROJECT COST: -$ -$
Page 2 of 2Page 532 of 761
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K-1-7
4825-3218-1203/024036-0079
Schedule 3 to Developer’s Phase 1A Payment Request
See attached]
Page 533 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Schedule 3
ALL Invoice Costs Incurred
Draw Code Kind of Work Invoice Date Invoice # Vendor Description Amount BFDIF Sewer Other/Bond Proceeds Total Dt Pd Ck# Amounts Un aid
HARD CONSTRUCTION COSTS 0% 0% 0%
ARCHITECTURE, ENGINEERING FEES 0% 0% 0%
STIPULATED DEVELOPER'S OVERHEAD AMOUNT/G&A 0% 0% 0%
SDG&E DRY UTILITIES 0% 0% 0%
BUILDERS RISK, GL AND WC INSURANCE 0% 0% 0%
PERMIT FEES & PLAN CHECK FEES & INSPECTION FEES 0% 0% 0%
IMPACT FEES / CONNECTION FEES 0% 0% 0%
CONTINGENCY 0% 0% 0%
PAYMENT BONDS 0% 0% 0%
LEGAL & OTHER PROFESSIONAL FEES 0% 0% 0%
PROPOSED GATEWAY SIGN 0% 0% 0%
EARLY WORK 0% 0% 0%
PROJECT ADMINISTRATION FEE 0% 0% 0%
DRAW TOTAL -$ -$ -$ -$ -$
CUMULATIVE TOTAL -$ -$ -$ -$ -$
RIDA Chula Vista, LLC - Phase 1A Infrastructur
FUND SOURCES
Page 534 of 761
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K-1-8
4825-3218-1203/024036-0079
EXHIBIT 1
Certificate of Architect
20[__]
Chula Vista Bayfront Facilities Financing Authority
PO Box 5296
Chula Vista, CA 91912
Attention: [Executive Director]
RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Ira Mitzner; Luke Charlton
Re: Developer’s Phase 1A Payment Request No. [___] under Project Implementation Agreement
the “Agreement”), dated as of May 26, 2022, by and among the City of Chula Vista, a
chartered municipal corporation (“City”), the Bayfront Project Special Tax Financing
District, a financing district established and existing pursuant to Chula Vista Municipal Code
Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance (the
Financing District”), the San Diego Unified Port District, a public corporation (the “Port
District”), the Chula Vista Bayfront Facilities Financing Authority (the “Authority”), a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise
of Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited
liability company (“Developer”).
Payment Request of $[_________]
Requested Payment Date: [_________], 20[__]
Ladies and Gentlemen:
Capitalized terms used herein without definition shall have the meanings assigned to them in
the Agreement.
the “Architect”) hereby certifies as follows:
a) The Architect has reviewed the above referenced Developer’s Phase 1A Payment
Request No. [___] (the “Payment Request”) and the Agreement, to the extent necessary to
understand the defined terms contained herein and in the Payment Request that are incorporated by
reference from the Agreement and to provide the certification contained herein.
b) The Architect hereby certifies and confirms that, pursuant to the observation of the
work as required by the [describe Architect Agreement] and in accordance with applicable
professional standards, the construction performed for the Developer’s Phase 1A Infrastructure
Improvements as of the date hereof has been performed substantially in accordance in all material
respects with the Approved Drawings and Specifications with respect to the Developer’s Phase 1A
Infrastructure Improvements, or to the extent any such construction has not been performed
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substantially in accordance in all material respects with the Approved Drawings and Specifications
with respect to the Developer’s Phase 1A Infrastructure Improvements, the amount to be disbursed
under this payment request has been reduced by $[_____] to reflect the reasonably estimated cost of
causing such construction to be performed substantially in accordance in all material respects with
Approved Drawings and Specifications with respect to the Developer’s Phase 1A Infrastructure
Improvements. The foregoing certification is subject to an evaluation of the Developer’s Phase 1A
Infrastructure Improvements for conformance with the Approved Drawings and Specifications with
respect to the Developer’s Phase 1A Infrastructure Improvements upon Completion, to results of
subsequent tests and inspections, and to correction of minor deviations from the Approved Drawings
and Specifications with respect to the Developer’s Phase 1A Infrastructure Improvements prior to
Completion. This certificate is not a representation that the Architect has (1) made exhaustive or
continuous on-site inspections to check the quality or quantity of the work, (2) reviewed construction
means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received
from Subcontractors and material suppliers, or (4) made examination to ascertain how or for what
purpose the Developer has used money previously paid on account of the Developer’s Phase 1A
Contract Sum.
c) Except as described in (b) above, no work or component of work has been rejected or
disapproved by an inspector or other authorized representative of the City’s building or public works
departments or a stormwater inspector representing the Port District.
d) Any representations or certifications by the Architect herein shall mean an expression
of the Architect’s professional opinion to the best of its information, knowledge and belief, and does
not constitute a warranty or guarantee by the Architect.
The Authority is entitled to rely on the foregoing representations, warranties and
certifications in authorizing and making the disbursement requested in the Payment Request.
SIGNATURE PAGE FOLLOWS]
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K-2-1
4825-3218-1203/024036-0079
Exhibit K-2
Form of Convention Center Payment Request
202[_]
Chula Vista Bayfront Facilities Financing Authority
PO Box 5296
Chula Vista, CA 91912
Attention: [Executive Director]
Re: Convention Center Payment Request No. [___] under Project Implementation Agreement
the “Agreement”), dated as of May 26, 2022, by and among the City of Chula Vista, a
chartered municipal corporation (“City”), the Bayfront Project Special Tax Financing
District, a financing district established and existing pursuant to Chula Vista Municipal Code
Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance (the
Financing District”), the San Diego Unified Port District, a public corporation (the “Port
District”), the Chula Vista Bayfront Facilities Financing Authority (the “Authority”), a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise
of Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited
liability company (“Developer”).
Payment Request of $[_________]
Requested Payment Date: [_________], 20[__]2
Ladies and Gentlemen:
The Developer submits this Convention Center Payment Request (the “Payment Request”)
pursuant to Section 9.2.2 of the Agreement with respect to the Convention Center. Capitalized terms
used herein without definition shall have the meanings assigned in the Agreement.
The Developer hereby requests that the Authority, on the requested payment date set forth
above (the “Requested Payment Date”), direct the Trustee to transfer $ [_____] (the “Requested
Payment Amount”) from the [Account] to the [Account]. The Requested Payment Amount is
calculated as set forth on Schedule 1.
In connection with the requested payment, the Developer hereby represents, warrants and
certifies as of the date hereof as follows:
a) Schedule 1 accurately reflects for each line item in the Convention Center Budget, (i)
the current budget amount, (ii) amounts previously funded by the Authority, (iii) the Requested
Payment Amount, (iv) hard costs incurred, including retainage and (v) retainage withheld.
2 NTD: To be not less than 10 business days after the date of the Convention Center Payment Request.
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b) Schedule 2 accurately lists, for the Requested Payment Amount, each Person to
whom any of the Convention Center Costs have been or will be paid and, for each line item in such
schedule and for each such Person, the following: (i) the name of the payee paid or to be paid, (ii) the
invoice date, invoice number and amount that Developer has paid to such Person or intends to pay to
such Person during the next 30 days, (iii) a description of the purpose of such payment, specifying
the line item relating to each such payment.
c) Schedule 3 accurately lists, since inception of the Convention Center work, each
Person to whom any of the Convention Center Costs have been or will be paid and, for each line item
in such schedule and for each such Person, the following: (i) the name of the payee paid or to be
paid, and, (ii) amount that Developer has paid to such Person, (iii) the invoice date, invoice number
and amount that Developer intends to pay to such Person during the next 30 days, (iv) a description
of the purpose of such payment, specifying the line item relating to each such payment, and (v) the
amounts that have been expended and have been applied to pay Convention Center Costs in
accordance with Contract Documents and the Agreement, except for $[_____] and amounts paid in
respect of the Development Fees and Stipulated Convention Center Overhead Amount. The amounts
listed on Schedule 3 do not include any Non-Project Costs. The information set forth in Schedule 3
as noted above is true, correct and complete in all material respects.
d) The Developer has delivered or caused to be delivered to the Authority:
i) copies of true and complete invoices that have been tendered for all
Convention Center Costs pursuant to any Payment Request, and
ii) statutory lien/stop payment notice conditional waivers and releases associated
with all work performed, or supplies provided, for the Convention Center and for which payment is
requested in the appropriate statutory form, other than Excluded Mechanics Lien Waivers, and
iii) copies of all change orders executed prior to the date of the Payment Request.
e) To Developer’s actual knowledge, after inquiring with Developer’s architect or
engineer who has a representative at the Project Site, the construction performed for the Convention
Center as of the date hereof has been performed substantially in accordance in all material respects
with the Convention Center Plans, or to the extent any such construction has not been performed
substantially in accordance in all material respects with the Approved Drawings and Specifications,
the amount to be disbursed under this payment request has been reduced by $[_____] pursuant to the
Architect’s Certificate (as defined below) to reflect the reasonably estimated cost of causing such
construction to be performed substantially in accordance in all material respects with the Convention
Center Plans.
f) [Reserved].
g) The amount of the Payment Request reflects a reduction of $[_____], being the
amount for which the Developer does not intend to pay General Contractor or any Subcontractor
except to the extent the applicable work has been performed by others the Developer intends to pay).
h) The Convention Center Budget presently in effect is dated [__________] [and has not
been amended] [and includes all amendments through Convention Center Budget Amendment No.
Said budget (i) is based on reasonable assumptions as to all legal and factual matters material
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to the estimates set forth therein, (ii) has been prepared in good faith and with due care,
iii) accurately sets forth, for each line item in the Convention Center Budget, the total costs
anticipated to be incurred to achieve Completion, and (iv) fairly represents in all material respects the
Developer’s reasonable expectation as to the matters covered thereby as of its date.
i) As of the date hereof, no Event of Default exists.
j) As of the date hereof, Developer has complied with all applicable provisions of
Section 7.2.3.1 of the Agreement.
Attached to this Payment Request as Exhibit 1 is a certificate from the Architect (the
Architect’s Certificate”).
SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the undersigned has executed this Convention Center Payment
Request as of this [___] day of [_________], 202[_].
DEVELOPER
limited liability company
By: *
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Schedule 1 to Convention Center Payment Request
Line # Description Amount
1 The Convention Center Costs incurred or to be incurred
by Developer and for which Developer has made or
intends to make actual payment prior to the next
Convention Center Payment Request:
has accrued as of the date of the Convention Center
Payment Request:
3
that has accrued as of the date of the Convention
Center Payment Request:
4 Total of Lines 1, 2 and 3: $
Certificate:
Center Contract Sum:
General Contractor or any Subcontractor (except to the
extent the applicable work has been performed by
others the Developer intends to pay):
8 Total of Lines 5, 6 and 7: $
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Schedule 2 to Convention Center Payment Request
See attached]
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GAYLORD PACIFIC - RIDA Chula Vista LLC - Convention Center Schedule 2A
DRAW - SUMMARY
Item Description Original Budget
Previous
Adjustments
Current
Adjustments Note Revised Budget Previous Payments This Period Costs Total Paid to Date
Total Combined Paid To
Date
Total
Complete Balance to Finish Retainage
A1 HARD CONSTRUCTION COSTS - GMP Convention Center 308,364,640$ 308,364,640$ -$ -$ -$ -$ 0.00% 308,364,640.00$ -$
B ARCHITECTURE, ENGINEERING AND TESTING FEES 7,000,000$ 7,000,000$ -$ -$ -$ -$ 0.00% 7,000,000.00$ -$
C FF&E / OS&E / RELATED EXPENSES -$ -$ -$ -$ -$ -$ 0.00% -$ -$
D PRE-OPENING EXPENSES / SALES CENTER BUILD OUT / OPENING CASH 8,750,000$ 8,750,000$ -$ -$ -$ -$ 0.00% 8,750,000.00$ -$
E GENERAL ADMINISTRATION AND SUPERVISION (including predevelopment) 3,500,000$ 3,500,000$ -$ -$ -$ -$ 0.00% 3,500,000.00$
F DEVELOPMENT FEE 10,080,000$ 10,080,000$ -$ -$ -$ -$ 0.00% 10,080,000.00$
G LEGAL AND OTHER PROFESSIONAL FEES 5,250,000$ 5,250,000$ -$ -$ -$ -$ 0.00% 5,250,000.00$
H TITLE INSURANCE, RECORDING FEES AND OTHER COSTS 462,000$ 462,000$ -$ -$ -$ -$ 0.00% 462,000.00$
I INSURANCE 5,810,000$ 5,810,000$ -$ -$ -$ -$ 0.00% 5,810,000.00$
J 7,538,276$ 7,538,276$ -$ -$ -$ -$ 0.00% 7,538,276.00$
K PROPERTY TAXES 4,214,023$ 4,214,023$ -$ -$ -$ -$ 0.00% 4,214,023.00$
L UTILITIES / MISC. PERMITS / FEES / COSTS 1,750,000$ 1,750,000$ -$ -$ -$ -$ 0.00% 1,750,000.00$
TOTAL PROJECT COST: 362,718,939$ -$ -$ 362,718,939$ -$ -$ -$ -$ 0.00% 362,718,939.00$
BUDGET PAYMENTS SUMMARY
IMPACT FEES / CONNECTION FEES / PLAN FEES / PERMIT FEES / PAYMENT
BOND FEE
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Schedule 2B
Code Kind of Work Invoice Date Invoice # Vendor Description Amount Total Dt Pd Ck# Amounts Un a
A HARD CONSTRUCTION COSTS - GMP Convention Center -$
A-1 -$
A-2 -$
A-3 -$
B ARCHITECTURE, ENGINEERING AND TESTING FEES -$
B-1 -$
B-2 -$
B-3 -$
C FF&E / OS&E / RELATED EXPENSES -$
C-1 -$
C-2 -$
C-3 -$
D OPENING CASH -$
D-1 -$
D-2 -$
D-3 -$
E
GENERAL ADMINISTRATION AND SUPERVISION
including predevelopment)-$
E-1 -$
E-2 -$
E-3 -$
F DEVELOPMENT FEE -$
F-1 -$
F-2 -$
F-3 -$
G LEGAL AND OTHER PROFESSIONAL FEES -$
G-1 -$
G-2 -$
G-3 -$
H TITLE INSURANCE, RECORDING FEES AND OTHER COSTS -$
H-1 -$
H-2 -$
H-3 -$
I INSURANCE -$
I-1 -$
I-2 -$
I-3 -$
J -$
J-1 -$
J-2 -$
J-3 -$
K PROPERTY TAXES -$
K-1 -$
K-2 -$
K-3 -$
L UTILITIES / MISC. PERMITS / FEES / COSTS -$
L-1 -$
L-2 -$
L-3 -$
TOTAL CONVENTION CENTER COST -$ -$
RIDA Chula Vista, LLC - Convention Cente
Detail Invoice Costs Incurred, Draw
IMPACT FEES / CONNECTION FEES / PLAN FEES /
PERMIT FEES / PAYMENT BOND FEE
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Schedule 3 to Convention Center Payment Request
See attached]
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Schedule 3
Draw Code Invoice Date Invoice # Vendor Description Amount Total Dt Pd Ck# Amounts Unpaid
Total Project -$
RIDA Chula Vista, LLC - Convention Cente
ALL Invoice Costs Incurred
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EXHIBIT 1
Certificate of Architect
20[__]
Chula Vista Bayfront Facilities Financing Authority
PO Box 5296
Chula Vista, CA 91912
Attention: [Executive Director]
RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Ira Mitzner; Luke Charlton
Re: Convention Center Payment Request No. [___] under Project Implementation Agreement
the “Agreement”), dated as of May 26, 2022, by and among the City of Chula Vista, a
chartered municipal corporation (“City”), the Bayfront Project Special Tax Financing
District, a financing district established and existing pursuant to Chula Vista Municipal Code
Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance (the
Financing District”), the San Diego Unified Port District, a public corporation (the “Port
District”), the Chula Vista Bayfront Facilities Financing Authority (the “Authority”), a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise
of Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited
liability company (“Developer”).
Payment Request of $[_________]
Requested Payment Date: [_________], 20[__]
Ladies and Gentlemen:
Capitalized terms used herein without definition shall have the meanings assigned to them in
the Agreement.
the “Architect”) hereby certifies as follows:
a) The Architect has reviewed the above referenced Convention Center Payment
Request No. [___] (the “Payment Request”) and the Agreement, to the extent necessary to
understand the defined terms contained herein and in the Payment Request that are incorporated by
reference from the Agreement and to provide the certification contained herein.
b) The Architect hereby certifies and confirms that, pursuant to the observation of the
work as required by the [describe Architect Agreement] and in accordance with applicable
professional standards, the construction performed for the Convention Center as of the date hereof
has been performed substantially in accordance in all material respects with the Convention Center
Plans, or to the extent any such construction has not been performed substantially in accordance in all
material respects with Convention Center Plans, the amount to be disbursed under this payment
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request has been reduced by $[_____] to reflect the reasonably estimated cost of causing such
construction to be performed substantially in accordance in all material respects with Convention
Center Plans. The foregoing certification is subject to an evaluation of the Convention Center for
conformance with the Convention Center Plans upon Completion, to results of subsequent tests and
inspections, and to correction of minor deviations from the Convention Center Plans prior to
Completion. This certificate is not a representation that the Architect has (1) made exhaustive or
continuous on-site inspections to check the quality or quantity of the work, (2) reviewed construction
means, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received
from Subcontractors and material suppliers, or (4) made examination to ascertain how or for what
purpose the Developer has used money previously paid on account of the Convention Center
Contract Sum.
c) [Reserved]
d) Any representations or certifications by the Architect herein shall mean an expression
of the Architect’s professional opinion to the best of its information, knowledge and belief, and does
not constitute a warranty or guarantee by the Architect.
The Authority is entitled to rely on the foregoing representations, warranties and
certifications in authorizing and making the disbursement requested in the Payment Request.
SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the undersigned has executed this Certificate of Architect as of
this [___] day of [_________], 201[__].
By: _____________________________________
Name:
Title:
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Exhibit L
Sole Source Subcontract Award Approval
Developer’s Phase 1A Infrastructure Improvements)
Request No.
Reference is made to that certain Project Implementation Agreement (the “Agreement”), dated as of
May 26, 2022, by and among the City of Chula Vista, a chartered municipal corporation (“City”), the
Bayfront Project Special Tax Financing District, a financing district established and existing pursuant
to Chula Vista Municipal Code Chapter 3.61 Bayfront Project Special Tax Financing District
Procedural Ordinance (the “Financing District”), the San Diego Unified Port District, a public
corporation (the “Port District”), the Chula Vista Bayfront Facilities Financing Authority, a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise of
Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited liability
company (“Developer”). Capitalized terms used herein without definition shall have the meanings
assigned in the Agreement.
The Developer hereby provides notice of intent to award a sole-source subcontract to [insert dba] for
Developer’s Phase 1A Infrastructure Improvements. A draft of such subcontract is attached as
Exhibit 1 hereto. In connection with this Sole Source Subcontract Award Approval Request, the
undersigned hereby certifies, represents and warrants to the Authority, in each case, solely in his or
her capacity as [insert title] of Developer and not in his or her individual capacity, as follows:
A. He (she) is a duly authorized representative or signatory of Developer, qualified to execute
this Sole Source Subcontract Award Approval Request on behalf of Developer and is knowledgeable
as to the matters set forth herein.
B. The proposed subcontractor is as follows:
a. [Corporate Name]
b. [dba]
c. [Mailing Address]
d. [Contact Phone Number]
e. [Contact Email]
f. [California Contractor License Number]
g. [City of Chula Vista Business License Number]
C. The proposed subcontract includes the following scope of work: [insert scope]
D. The proposed sole source subcontract is in the amount of $ .
E. The Developer recommends a sole source contract.
F. The proposed sole source subcontract has been awarded in accordance with the Agreement,
including Exhibit G-1, and the Authority Procurement Policy.
G. The subject commodity or service is reasonably available in a manner consistent with the
timely completion of the Developer’s Phase 1A Infrastructure Improvements in accordance with the
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Agreement from only one known source as the result of unique performance capabilities,
manufacturing processes, compatibility requirements or market conditions.
By the Authority’s execution of this Sole Source Subcontract Award Approval Request, the
Authority hereby waives the provisions of the Authority Procurement Policy to the extent necessary
to enable the sole source subcontract described in this Sole Source Subcontract Award Approval
Request by Developer’s General Contractor.
Signature Pages Follow]
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I hereby declare, solely in my capacity set forth below and not in my individual capacity, that
the above representations are true and correct.
DEVELOPER:
RIDA CHULA VISTA, LLC, a Delaware limited liability company
California Contractor License Number:
1039979
By:
Name], [Title]
Dated:
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By the Authority’s execution of this Sole Source Subcontract Award Approval Request, and
in reliance upon the Developer’s representations and certifications set forth in the above request for
approval of Sole Source Subcontract Award, the Authority hereby approves such award.
APPROVED:
AUTHORITY:
CHULA VISTA BAYFRONT FACILITIES
FINANCING AUTHORITY,
a joint exercise of powers authority
By:
Name], [Title]
Dated:
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Exhibit 1
Draft Subcontract
See attached]
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Exhibit M
Best Qualified Contractor Subcontract Award Approval
Developer’s Phase 1A Infrastructure Improvements)
Request No.
Reference is made to that certain Project Implementation Agreement (the “Agreement”), dated as of
May 26, 2022, by and among the City of Chula Vista, a chartered municipal corporation (“City”), the
Bayfront Project Special Tax Financing District, a financing district established and existing pursuant
to Chula Vista Municipal Code Chapter 3.61 Bayfront Project Special Tax Financing District
Procedural Ordinance (the “Financing District”), the San Diego Unified Port District, a public
corporation (the “Port District”), the Chula Vista Bayfront Facilities Financing Authority, a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise of
Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited liability
company (“Developer”). Capitalized terms used herein without definition shall have the meanings
assigned in the Agreement.
The Developer hereby provides notice of intent to award a subcontract to [insert dba] as a “best
qualified” contractor (as described in the Authority Procurement Policy). A draft of such subcontract
is attached as Exhibit 1 hereto. In connection with this Best Qualified Contractor Subcontract Award
Approval Request, the undersigned hereby certifies, represents and warrants to the Authority, in each
case, solely in his or her capacity as [insert title] of Developer and not in his or her individual
capacity, as follows:
A. He (she) is a duly authorized representative or signatory of Developer, qualified to execute
this Subcontract Award Approval Request on behalf of Developer and is knowledgeable as to the
matters set forth herein.
B. The proposed subcontractor is as follows:
a. [Corporate Name]
b. [dba]
c. [Mailing Address]
d. [Contact Phone Number]
e. [Contact Email]
f. [California Contractor License Number]
g. [City of Chula Vista Business License Number]
C. The proposed subcontract includes the following scope of work: [insert scope]
D. The proposed subcontract is in the amount of $ .
E. The Developer or its General Contractor conducted a qualification process that considered,
among other things, any or all of the following: past relevant/similar project experience, construction
experience and capability, labor relations, customer feedback from those projects, current backlog,
available trades personnel resources, proposed supervisory/management personnel, financial
capability, and design capabilities (for design-build subcontracts).
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F. (select 1 option, delete the other options)
For work estimated to be equal to or in excess of $75,000, [the Developer or its General Contractor
solicited three competitive proposals from the pre-qualified list of subcontractors] OR [the Developer
determined that soliciting proposals for such work was not practical under the circumstances].
OR
For work estimated to be less than $75,000, [the Developer or its General Contractor solicited two
competitive proposals from the pre-qualified list of subcontractors] OR [the Developer determined
that soliciting proposals for such work was not practical under the circumstances].
G. The Developer or its General Contractor considered, among other things, any or all of the
following: qualitative factors (i.e. personnel, schedule management, construction experience and
capability, labor relations, experience, expertise and business practices and policies that increase the
likelihood that the Project will be completed without disruption, and quality management) and
quantitative factors (i.e. price, schedule details, and rate for labor, equipment, and insurance).
H. The Developer conducted a pre-selection in-depth interview with potential “best qualified”
subcontractors.
I. [The Developer offered a pre-selection process for potential subcontractors to present a “best
and final offer”.] [Insert if applicable]
J. The Developer determined that the proposed subcontractor provided the best value for the
Project.
K. The proposed subcontract has been awarded in accordance with the Agreement, including
Exhibit G-1, and the Authority Procurement Policy.
The Developer hereby requests a waiver pursuant to Section 2(d)(ii) of the Authority Procurement
Policy with respect to the proposed subcontractor, and by the Authority’s execution of this Best
Qualified Contractor Subcontract Award Approval Request, the Authority hereby grants such
waiver.] [NTD: Include if the proposed subcontractor is not the lowest responsive and responsible
bidder for a unit of work and the proposed subcontractor’s bid exceeds the engineer’s estimate or
other approved estimate for the work by more than ten percent.]
Signature Pages Follow]
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I hereby declare, solely in my capacity set forth below and not in my individual capacity, that
the above representations are true and correct.
DEVELOPER:
RIDA CHULA VISTA, LLC, a Delaware limited liability company
California Contractor License Number:
1039979
By:
Name], [Title]
Dated:
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By the Authority’s execution of this Best Qualified Contractor Subcontract Award Approval
Request, and in reliance upon the Developer’s representations and certifications set forth in the above
request for approval of Best Qualified Contractor Subcontract Award, the Authority hereby approves
such award.
APPROVED:
AUTHORITY:
CHULA VISTA BAYFRONT FACILITIES
FINANCING AUTHORITY,
a joint exercise of powers authority
By:
Name], [Title]
Dated:
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Exhibit 1
Draft Subcontract
See attached]
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Exhibit N-1
List of Approved Arbitrators
Hon. Jeffrey Barton, Ret.
Hon. Frederick Aguirre, Ret.
Hon. Victor Bianchini, Ret.
Hon. Herbert Hoffman, Ret.
Hon. Thomas Nugent, Ret.
Hon. Robert Polis, Ret.
Hon. Clay Smith, Ret.
Hon. David Velasquez, Ret.
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Exhibit N-2
List of Approved Mediators
Hon. Jeffrey Barton, Ret.
Hon. Frederick Aguirre, Ret.
Hon. Victor Bianchini, Ret.
Hon. Herbert Hoffman, Ret.
Hon. Leo Papas, Ret.
Hon. Robert Polis, Ret.
Hon. Clay Smith, Ret.
Hon. David Velasquez, Ret.
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Exhibit O
Energy Requirements
The Parties acknowledge that Section 15 of the Settlement Agreement requires that all
Developments” within the Proposed Project (as defined in the Settlement Agreement) area achieve,
in the aggregate, a fifty percent (50%) reduction in annual energy use (the “50% Energy Standard”)
compared to that allowed under the Building Energy Efficiency Standards, Title 24, Part 6, of the
California Code of Regulations in effect as of May 4, 2010 (“2010 Title 24”). To implement
Section 15 of the Settlement Agreement with respect to the Project, the Parties agree as follows:
a) Developer represents and warrants that it has prepared the Plans (as defined
in the Ground Lease) and the Convention Center Plans (collectively, the “Energy Requirement
Plans”) in such a manner that each building will operate at an energy consumption level equal to or
better than the more stringent of the following two standards, which shall be referred to herein as, the
Minimum Energy Efficiency Design Standard”: (i) fifteen percent (15%) less than the amount of
energy that each building would otherwise be permitted to consume under 2010 Title 24; or (ii) the
minimum energy efficiency performance standard adopted by the City at the time a building permit
application is submitted for each building.
b) No later than thirty (30) days prior to the date when the first building in the
Project is open for business, Developer shall deliver to Authority for Authority’s approval, a
measurement and verification plan for energy efficiency for the Project based on the Energy
Requirement Plans (as approved by Authority in accordance with this Agreement or the Port District
in accordance with the Ground Lease, as applicable) (the “M&V Plan”). Developer shall also
provide a courtesy copy of the M&V Plan to the City and Port District concurrently with its delivery
to Authority.
c) Developer shall implement and maintain the M&V Plan throughout the Term.
d) Developer shall cause the performance of, and deliver to Port District and
City, an energy consumption audit for each of the buildings in the Project no less frequently than
every three (3) years after the Completion of the Resort Hotel and the Completion of the Parking
Improvements, as applicable, as more particularly set forth in Section 15.2.2.4 of the Settlement
Agreement (the “Required Energy Audits”).
e) If the City and Port District ultimately determine that the Energy Requirement
Plans do not achieve the 50% Energy Standard as applied to the Project (as defined in the Ground
Lease), Developer, the City and Port District shall work together to identify additional energy
savings measures, programs or credits (collectively, “Additional Energy Savings Measures”)
available to achieve the 50% Energy Standard. Such Additional Energy Savings Measures may
include, without limitation, Developer’s participation in renewable or “time of use” energy purchase
programs, and/or other measures identified in Section 15.2 of the Settlement Agreement. Developer
agrees to participate in and/or implement the Additional Energy Savings Measures so identified at
Developer’s cost, to the extent “commercially reasonable” (as defined below), in order to maximize
energy use reduction at the Project (as defined in the Ground Lease), in the aggregate, up to the 50%
Energy Standard. If, despite Developer’s efforts, Developer cannot reduce the energy use standard at
the Project (as defined in the Ground Lease) to achieve the 50% Energy Standard, either because it is
Page 562 of 761
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4825-3218-1203/024036-0079
not commercially reasonable to do so, or Developer’s participation in and/or implementation of the
Additional Energy Savings Measures identified by the City and Port District do not result in the 50%
Energy Standard, the City and Port District agree to identify additional energy savings measures or
credits that the City and Port District could implement (at a cost to be shared equally by the City and
Port District) or cause third parties to implement (without a public subsidy or rent reduction),
throughout the Proposed Project (as defined in the Settlement Agreement) area, to achieve the 50%
Energy Standard for the Project (as defined in the Ground Lease). For purposes of this Exhibit O,
commercially reasonable” Additional Energy Savings Measures are the Additional Energy
Savings Measures that Developer reasonably determines can be implemented practicably and cost-
effectively at the Project (as defined in the Ground Lease) and that the implementation of which will
not interfere with the operation of any portion of the Project. Developer shall cooperate with the City
and Port District in good faith to identify locations for the commercially reasonable Additional
Energy Savings Measures on the Premises and shall enter into any agreements with Port District
and/or the City, as reasonably required, to effectuate the construction of such commercially
reasonable Additional Energy Savings Measures on the Premises.
f) Developer shall indemnify and defend the Authority, the City, and the Port
District, at Developer’s sole cost and expense and with counsel reasonably selected by the Public
Entities and reasonably approved by Developer, and hold harmless the Authority, the City, and the
Port District for any and all claims (including claims under negligence and strict liability), demands,
liability, losses, causes of actions and suits of any kind, administrative or judicial proceedings,
orders, judgments, and all Related Costs arising directly or indirectly out of any breach by Developer
of its obligations under this Exhibit O, except for claims or litigation arising through the sole gross
negligence or willful misconduct of any Public Entity Party (but subject to Section 15.4 of this
Agreement); provided, that the sole gross negligence or willful misconduct of one Public Entity Party
with respect to any Public Entity shall not be attributed to or affect the rights of any Public Entity
Party with respect to any other Public Entity under this clause (f). If a Public Entity determines in its
reasonable discretion that there is a conflict of interest with Developer’s counsel representing such
Public Entity and Developer, or that there is a conflict of interest with counsel representing such
Public Entity and the other Public Entities, then such Public Entity, at its election, may conduct its
own defense with its own counsel that is reasonably selected by the Public Entity, reasonably
approved by Developer, and independent from Developer’s counsel (and in that event Developer will
select its own counsel) and the reasonable costs incurred by the applicable Public Entity in such
defense shall be covered by the foregoing indemnification, hold harmless and defense obligations
and be subject to reimbursement pursuant to the Reimbursement Procedure. The terms of this clause
f) shall survive the expiration or earlier termination of this Agreement. Nothing in this Exhibit O
shall limit Developer’s obligations to indemnify Port District and the City with regard to the
Convention Center Plans, the Improvements, or other Developer’s Phase 1A Infrastructure
Improvements if and to the extent required under this Agreement.
g) For purposes of the Settlement Agreement, Developer’s obligations to
comply with Section 15 of the Settlement Agreement are limited to the requirements set forth herein.
So long as Developer has complied with its obligations under this Exhibit O, Section 4.10 of the
Ground Lease, and Section 5.8 of this Agreement, Developer will not be in default and will not be in
breach under the Ground Lease, this Agreement or the Settlement Agreement based upon any alleged
failure to comply with the terms of Section 15 of the Settlement Agreement in the design of the
Project.
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h) For purposes of this Exhibit O, “Project” shall mean Project as defined in the
Ground Lease.
Page 564 of 761
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Exhibit P
Form of Developer’s Convention Center Budget
CONVENTION CENTER (DRAFT)
A HARD CONSTRUCTION COSTS - GMP $ 308,364,640.00
B ARCHITECTURE, ENGINEERING AND TESTING FEES 7,000,000.00
C FF & E / OS & E / RELATED EXPENSES -
D PRE-OPENING EXPENSES / SALES CENTER BUILD OUT /
OPENING CASH
8,750,000.00
E GENERAL ADMINISTRATION AND SUPERVISION
including predevelopment)
3,500,000.00
F DEVELOPMENT FEE 10,080,000.00*
G LEGAL & OTHER PROFESSIONAL FEES 5,250,000.00
H TITLE INSURANCE, RECORDING FEES AND OTHER
COSTS
462,000.00
I INSURANCE 5,810,000.00
J IMPACT FEES / CONNECTION FEES / PLAN FEES /
PERMIT FEES / PAYMENT BOND FEE
11,516,342.00
K PROPERTY TAXES 4,214,023.00
L UTILITIES / MISC. PERMITS / FEES / COSTS 1,208,920.00
TOTAL PROJECT COST:366,155,925.00
Up to an additional $2,520,000 may be reallocated from the General Contingency line item in
the Hotel and Parking Improvements budget to the Convention Center Development Fee
twelve months after Completion of the Convention Center, increasing the Development Fee
with respect to the Convention Center from $10,080,000 to $12,600,000.
Page 565 of 761
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Exhibit Q
Port District Transfer Documents
Ground Lease
Site Lease
Project Implementation Agreement
Support Agreement
Chula Vista Bayfront Master Plan Settlement Agreement filed on May 20, 2010 with the Office of
the District Clerk as Document No. 56523
District Conditional Project Approval dated May 3, 2022, filed on May 5, 2022 in the Office of the
District Clerk as Document No. 74083
Coastal Development Permit (CDP) issued by the Board of Port Commissioners on June 18, 2019;
CDP No. 2019-03, Resolution No. 2019-080, issued on July 11, 2019, Document No. 70152, filed in
the Office of the District Clerk on July 29, 2019
Page 566 of 761
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Exhibit R
Form of Memorandum Agreement and Non-Disturbance Agreement
RECORDING REQUESTED BY AND
AND WHEN RECORDED RETURN TO:
RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Ira Mitzner
Above Space for Recorder’s Use Only)
MEMORANDUM OF AGREEMENT AND NON-DISTURBANCE AGREEMENT
This Memorandum of Agreement and Non-Disturbance Agreement, hereinafter
Memorandum,” is dated May 26, 2022, among the City of Chula Vista, a chartered municipal
corporation (“City”), the Bayfront Project Special Tax Financing District, a financing district
established and existing pursuant to Chula Vista Municipal Code Chapter 3.61 Bayfront Project
Special Tax Financing District Procedural Ordinance (the “Financing District”), the San Diego
Unified Port District, a public corporation (the “Port District”), the Chula Vista Bayfront Facilities
Financing Authority (the “Authority”), a joint exercise of powers entity created by the City and the
Port District pursuant to the Joint Exercise of Powers Act (defined herein below), and RIDA Chula
Vista, LLC, a Delaware limited liability company (“Developer”) (collectively, together with their
successors and assigns, the “Parties” and, individually, a “Party”), concerning that certain real
property described in Exhibits “A-1”, “A-2” and “A-3” and depicted in Exhibits “B-1”, “B-2” and
B-3”, attached hereto and by this reference made a part hereof.
The Parties have entered into that certain Project Implementation Agreement of even date
herewith (the “Agreement”), which contains various covenants, obligations and rights of the Parties,
all as more specifically set forth in said Agreement (including, without limitation, the provisions set
forth in Annex I attached hereto and by this reference made a part hereof). The Agreement is
incorporated in this Memorandum by this reference.
The term of the Agreement begins May 26, 2022 and ends May 26, 2088 or sooner, as set
forth in Section 3.1 of the Agreement. In no event shall the Term extend beyond sixty-six (66) years
from the Effective Date.
In amplification of the foregoing, Article XXIII (Nondisturbance) of the Agreement is hereby
incorporated by reference as if fully set forth herein and each of the parties hereto acknowledges and
reaffirms (i) its respective obligations and agreements under such Article XXIII (Nondisturbance) of
the Agreement with respect to the Site Lease, the Facility Lease and the Sublease, each as applicable,
and (ii) that each Permitted Lender is an express third party beneficiary hereof and thereof.
This Memorandum is not a complete summary of the Agreement. Provisions in this
Memorandum shall not be used in interpreting the Agreement provisions. In the event of conflict
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between the terms of this Memorandum and terms of the Agreement, the terms of the Agreement
shall control.
Signature Pages Follow]
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IN WITNESS WHEREOF, the Parties have executed this Memorandum of Agreement as of
the date first set forth above.
CITY
city and municipal corporation
By:
Maria V. Kachadoorian, City Manager
APPROVED AS TO FORM:
By:
Glen R. Googins, City Attorney
DEVELOPER
limited liability company
By: *
Page 569 of 761
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PORT DISTRICT AUTHORITY
SAN DIEGO UNIFIED PORT DISTRICT,
a public corporation
CHULA VISTA BAYFRONT FACILITIES
FINANCING AUTHORITY, a joint exercise of
powers authority
By: By:
APPROVED AS TO FORM AND LEGALITY: APPROVED AS TO FORM AND LEGALITY:
By:
Thomas A. Russell, General Counsel
By:
Co-Counsel, Thomas A. Russell, General
Counsel of the San Diego Unified Port
District
By:
Co-Counsel, Glen R. Googins, City
Attorney of the City of Chula Vista
FINANCING DISTRICT
BAYFRONT PROJECT SPECIAL TAX
FINANCING DISTRICT
By:
Maria V. Kachadoorian, City Manager
Signatories to provide signature authority for signatory
Page 570 of 761
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EXHIBIT A-1 TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
LEGAL DESCRIPTION OF SITE
to be attached prior to execution.)
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EXHIBIT A-2 TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
LEGAL DESCRIPTION OF GROUND LEASE PROPERTY
to be attached prior to execution.)
Page 572 of 761
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EXHIBIT A-3 TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
LEGAL DESCRIPTION OF DEVELOPER’S PHASE 1A
INFRASTRUCTURE IMPROVEMENTS SITE
to be attached prior to execution.)
Page 573 of 761
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EXHIBIT B-1 TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
DEPICTION OF SITE
to be attached prior to execution.)
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EXHIBIT B-2 TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
DEPICTION OF GROUND LEASE PROPERTY
to be attached prior to execution.)
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EXHIBIT B-3 TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
DEPICTION OF DEVELOPER’S PHASE 1A
INFRASTRUCTURE IMPROVEMENTS SITE
to be attached prior to execution.)
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ANNEX I TO MEMORANDUM OF AGREEMENT
AND NON-DISTURBANCE AGREEMENT
NONDISTURBANCE PROVISIONS
1. Port District Nondisturbance of Lessee and Sublessee Rights under the Convention
Center Leases. In the event the Site Lease terminates, is rejected in any Bankruptcy Case or
otherwise ceases to exist, in each such case, prior to the expiration of the Sublease Term (and the
Sublease has not terminated in accordance with its terms as a result of an Event of Default by the
Developer thereunder), the Port District shall recognize the Facility Lease as, and the Facility Lease
shall be deemed to be, a direct lease between the Port District, as lessor, and the City, as lessee, and
the Port District shall not disturb the City’s leasehold interest or possession of the Site (as defined in
the Facility Lease) or the Convention Center under, and on the terms and conditions set forth in, the
Facility Lease, and the Port District shall continue to recognize and treat the Sublease as a sublease
between the City, as sublessor, and the Developer, as sublessee, and the City shall attorn to and
recognize the Port District as the City’s lessor under, and on the terms and conditions set forth in, the
Facility Lease. In the event the Facility Lease terminates, is rejected in any Bankruptcy Case or
otherwise ceases to exist, in each such case, prior to the expiration of the Sublease Term (and the
Sublease has not terminated in accordance with its terms as a result of an Event of Default by the
Developer thereunder), the Port District shall recognize the Sublease as, and the Sublease shall be
deemed to be, a direct lease between the Authority, as lessor, and the Developer, as lessee, and the
Developer shall attorn to and recognize the Authority as the Developer’s lessor under, and on the
terms and conditions set forth in, the Sublease. In the event both the Site Lease and the Facility
Lease terminate, are rejected in any Bankruptcy Case and/or otherwise cease to exist, in each such
case, prior to the expiration of the Sublease Term (and the Sublease has not terminated in accordance
with its terms as a result of an Event of Default by the Developer thereunder), (i) the Port District
shall recognize the Sublease as, and the Sublease shall be deemed to be, a direct lease between the
Port District, as lessor, and the Developer, as lessee, and the Port District shall not disturb the
Developer’s leasehold interest or possession of the Site (as defined in the Sublease) or the
Convention Center under, and on the terms and conditions set forth in, the Sublease, and the
Developer shall attorn to and recognize the Port District as the Developer’s lessor under, and on the
terms and conditions set forth in, the Sublease. Each Permitted Lender is an express third party
beneficiary of this Section 1 and is entitled to enforce this Section 1.
2. Authority Nondisturbance of Lessee and Sublessee Rights under the Convention
Center Leases. In the event the Facility Lease terminates, is rejected in any Bankruptcy Case or
otherwise ceases to exist, in each such case, prior to the expiration of the Sublease Term (and the
Sublease has not terminated in accordance with its terms as a result of an Event of Default by the
Developer thereunder), the Authority shall recognize the Sublease as, and the Sublease shall be
deemed to be, a direct lease between the Authority, as lessor, and the Developer, as lessee, and the
Authority shall not disturb the Developer’s leasehold interest or possession of the Site (as defined in
the Sublease) or the Convention Center under, and on the terms and conditions set forth in, the
Sublease, and the Developer shall attorn to and recognize the Authority as the Developer’s lessor
under, and on the terms and conditions set forth in, the Sublease. Each Permitted Lender is an
express third party beneficiary of this Section 2 and is entitled to enforce this Section 2.
3. Defined Terms. Capitalized terms used but not defined in this Annex I shall have the
meanings set forth in the Agreement.
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who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or
On ___________________ before me, ____________________________________, Notary Public,
personally appeared
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.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal
SIGNATURE OF NOTARY PUBLIC
Page 578 of 761
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S-1
4825-3218-1203/024036-0079
Exhibit S
Approved Agreements
CVBMP Documents
The agreements, licenses, right of entry agreements, and other documents included as “Exceptions
from Coverage” in that certain Owner’s Policy of Title Insurance issued by Chicago Title Insurance
Company to RIDA Chula Vista, LLC on the date of this Lease for File No. 84417C-993-SD2-CFU
Agreements set forth in Exhibit T (District Documents)
Contemporaneous Agreements
Prior Agreements
Convention Center Plans
Plans and Preliminary Parking Improvement Plans
Reimbursement Agreement
Sewer Agreement
Page 579 of 761
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Exhibit T
District Documents
Chicago Title Company Third Amended Preliminary Report dated May 6, 2022 at 7:30 a.m. (Order
No. 84417C-993-SD2-CFU) (Title Report)
Exception
No.*
Title Report Description Office of the District Clerk
Recording Info
Bayfront Financing Authority Document No. 61905 in the
Bayfront Master Financing Agreement Document No. 67068 in the
Convention Center Project Port and Rida Document No. 67071 in the
Page 580 of 761
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U-1
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Exhibit U
Prior Agreements
Disposition and Development Agreement (Sections 4.1(f), 4.7(c), 4.7(d), 4.17, 8.2, and 8.3)
Chula Vista Bayfront Project Phase 1A Early Work Implementation and Right of Entry License
Agreement (District Clerk No. 73207)
Sewer Agreement
Reimbursement Agreement
Page 581 of 761
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V-1-1
4825-3218-1203/024036-0079
Exhibit V-1
Approved Drawings and Specifications for
Developer’s Phase 1A Infrastructure Improvements
Attachment D to the DCPA.
Page 582 of 761
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V-2-1
4825-3218-1203/024036-0079
Exhibit V-2
Approved Drawings and Specifications for
Remaining Phase 1A Infrastructure Improvements
Attached on following page.)
Page 583 of 761
City of Chula Vista - City Council
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05
L002
ILLUSTRATIVE PLAN
RECORD DRAWING
MS/CL/SN
SN/JG
CHULA VISTA, CALIFORNIA
CV BAYFRONT PARKS - SWEETWATER PARK
03/25/2020
87
MS/CL
10
0
S
C
H
E
M
A
T
I
C
D
E
S
I
G
N
S
U
B
M
I
T
T
A
L
NOT FOR REGULATORY
APPROVAL, PERMITTING,
OR CONSTRUCTION
05/31/201950% SD SUBMITTAL
02/28/2020100% SD SUBMITTAL (DRAFT)
N S
E
WSCALE: 1"=100'
0 50 100 200
SWEETWATER
PARK LOT
LIVING COAST
DISCOVERY
CENTER LOT
GROWING
GROUNDS
TIMELINE
PLAZA
RESTROOM
MEADOW
GRASSLAND
ON MOUNDS
NATURE
PLAYGROUND
PICNIC
AREA
PICNIC
AREA
OVERLOOK
OVERLOOK
INTERPRETIVE
GARDEN
MAP PLAZA
OVERLOOK
VEGETATED
BASIN
OVERLOOK
HILL
SHUTTLE
STOP
ADVENTURE
PLAY
INTERPRETIVE
OVERLOOK
SWEETWATER
PROMENADE
N.I.C.)
GROUP
EDUCATION
RING
DUNES
SWEETWATER
PROMENADE
N.I.C.)
SWEETWATER
PROMENADE
N.I.C.)
INTERPRETIVE
GARDEN
PROMENADE
EXTENSION TO
HARBOR PARK
N.I.C.)
RV
RESORT
SEASONAL
WETLAND
AREA
F & G
STREET
MARSH
WILDLIFE
BLIND
WILDLIFE
BLIND
ENVIRONMENTAL
FENCING
ENVIRONMENTAL
FENCING
OUTER BUFFER
FUTURE PHASE
N.I.C.
FUTURE TIDAL
CHANNEL
OUTER BUFFER
FUTURE PHASE
N.I.C.
MARINE GROUP
BOATWORKS
SAN DIEGO
BAY
SAN DIEGO BAY
NATIONAL
WILDLIFE REFUGE
BASIN
BASIN
BASIN
TEMPORARY
DRIVE & PARKING
TEMPORARY
DRIVE & PARKING
PROMENADE
MITIGATION
AREA
HARBOR
PARK
1
2
3
8
4
5
7
6
9
13
10
12
11
H
E
F
G
X
X
RENDERING / PHOTOSIM LOCATION
DETAIL SECTION LOCATION
SWEETWATER PARK
LIMIT OF WORK LINE
SP-1
SP-2
SP-3
S-2
HP-1
PARCEL PREVIOUSLY DEVELOPED ACRES PROPOSED ACRES OF DEVELOPMENT IN THISPROJECTTOTALPARCELACRES
41.14
14.64
2.53
21.21
2.41
15.4 (SWEETWATER PROMENADE & RV RESORT)
5.47 (SWEETWATER PROMENADE & RV RESORT)
1.52 (RV RESORT)
5.23 (SWEETWATER PROMENADE)
1.32 (SWEETWATER PROMENADE)
10.77
0
1.01
15.98
77
REMAINING ACRES TO BE DEVELOPED
14.97
9.17
0
0
32
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W-1
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Exhibit W
Form of Equal Opportunity Employment Certification
EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION
The bidder ____________________________________________________, proposed
subcontractor ________________________________________, hereby certifies that he has ___, has
not ___, participated in a previous contract or subcontract subject to the equal opportunity clauses, as
required by Executive Orders 10925, 11114, or 11246, and that, where required, he has filed with the
Joint Reporting Committee, the Director of the Office of Federal Contract Compliance, a Federal
Government contracting or administering agency, or the former President’s Committee on Equal
Employment Opportunity, all reports due under the applicable filling requirements.
Note: The above certification is required by the Equal Employment Opportunity Regulations of the
Secretary of Labor (41 CFR 60-1.7(b) (1)), and must be submitted by bidders and proposed
subcontractors only in connection with contracts and subcontracts which are subject to the
equal opportunity clause. Contracts and subcontracts which are exempt from the equal
opportunity clause are set forth in 41 CFR 60-1.5. (Generally only contracts or subcontracts
of $10,000 or under are exempt.)
Currently, Standard Form 100 (EEO-1) is the only report required by the Executive Orders or
their implementing regulations.
Proposed prime contractors and subcontractors who have participated in a previous contract
or subcontract subject to the Executive Orders and have not filed the required reports should
note that 41 CFR 60-1.7(b) (1) prevents the award of contracts and subcontracts unless such
contractor submits a report covering the delinquent period or such other period specified by
the Federal Highway Administration or by the Director, Office of Federal Contract
Compliance, U.S. Department of Labor.
By: [BIDDER / CONTRACTOR]
Its:
Printed Name:
Page 585 of 761
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X-1-1
4825-3218-1203/024036-0079
Exhibit X-1
Early Work Agreement
To be attached prior to execution.]
Page 586 of 761
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CHULA VISTA BAYFRONT PROJECT
PHASE 1A EARLY WORK IMPLEMENTATION AND RIGHT OF ENTRY LICENSE
AGREEMENT
This Phase 1A Early Work Implementation and Right of Entry License Agreement,
hereinafter "Agreement", is entered into as of September 1, 2021 (the “Effective Date”),
by and among the San Diego Unified Port District, a public corporation ("District"), the
City of Chula Vista, a chartered municipal corporation (“City”), the Chula Vista Bayfront
Facilities Financing Authority, a California joint exercise of powers authority (“Authority”),
and RIDA Chula Vista, LLC, a Delaware limited liability company (“Developer”). District,
City, and Authority may be referred to collectively herein as the “Public Entities”. The
Public Entities and Developer may each be individually referred to herein as a "Party", or
collectively herein as the "Parties”.
RECITALS
a.On or about May 7, 2018, the District, City, and Developer entered into a
Disposition and Development Agreement (“DDA”) to construct, among other
things, a convention center, resort hotel and public infrastructure improvements,
which includes Developer’s Phase 1A Infrastructure Improvements (as defined in
the DDA). Pursuant to the DDA, at the Close of Escrow (as defined in the DDA),
the District and Developer will enter into a ground lease for the construction of the
resort hotel. The Board of Port Commissioners approved the ground lease on June
15, 2021 (the “Ground Lease”).
b.At the Close of Escrow, the District, the City, the Authority, the Bayfront Project
Special Tax Financing District and the Developer will enter into a project
implementation agreement (as amended, amended and restated, supplemented
or otherwise modified from time to time, the "Project Implementation Agreement"),
pursuant to which, among other things, the Authority will pay the Developer's
Phase 1A Contract Sum (as defined therein) to the Developer in connection with
the development and construction of the Developer's Phase 1A Infrastructure
Improvements (as defined in the DDA). The Board of Port Commissioners
approved the Project Implementation Agreement on June 15, 2021, the City
Council of the City of Chula Vista approved the Project Implementation Agreement
on June 15, 2021, and the governing board of the Authority approved the Project
Implementation Agreement on June 28, 2021.
c.The District owns certain real property located in Chula Vista, California, more
particularly described on Exhibit “A-1” and delineated on Exhibit "A-2", which is
attached hereto and incorporated herein by this reference (the "Premises").
d.The Developer’s Phase 1A Infrastructure Improvements (as defined in the DDA)
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
38)73207
10/07/21
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include the work that is more particularly described on Exhibit “B”, which is
attached hereto and incorporated herein by this reference (the “Work”), and more
particularly described in the work plan attached as Exhibit “B-1” (“Work Plan”).
e.As described in the Work Plan, the Work generally consists of construction and
backfill of a trench with installation of electrical facilities across the Premises, which
will provide electrical power to adjoining tenants during Developer’s construction
of the Developer’s Phase 1A Infrastructure Improvements, convention center, and
resort hotel. As described in the Work Plan, some of the electrical facilities are
intended to serve temporarily during construction of the Developer’s Phase 1A
Infrastructure Improvements, convention center, and resort hotel, and to be
removed by Developer upon completion of the construction of the Developer’s
Phase 1A Infrastructure Improvements, resort hotel, and convention center.
f.The DDA contemplates that the Developer will develop Developer’s Phase 1A
Infrastructure Improvements, including the Work, after the Close of Escrow (as
defined in the DDA).
g.Developer has now requested early access to the Premises – i.e., prior to the Close
of Escrow – in order to perform the Work, which Developer contends will allow for
greater efficiency in the construction of the Developer’s Phase 1A Infrastructure
Improvements post-Close of Escrow and shorten Developer’s construction
schedule.
h.The Public Entities are willing to permit Developer to perform the Work subject to
the terms and conditions set forth herein.
i.Under the DDA, the Developer is to be reimbursed for the Phase 1A Infrastructure
Costs (as defined in the DDA) if certain requirements are met, including but not
limited to, the issuance of bonds by the Authority at the Close of Escrow.
j.On January 8, 2020, the Board of Directors of the Authority (“Authority Board”)
adopted Resolution 2020-001 initially establishing a Procurement Policy for
developer-performed public works, which the Authority Board further ratified
through Resolution 2020-007 (“Procurement Policy”).
k.Pursuant to Section 5 of the Procurement Policy, the Authority may require a
developer to enter into an agreement to clarify the procurement procedures for a
particular project.
l.The Parties therefore intend to enter into this Agreement in order to
comprehensively address each Party’s respective obligations with respect to the
Work, and in particular: (1) the terms and conditions upon which the District will
grant Developer a license for the right to enter the Premises prior to Close of
Escrow, (2) the terms and conditions upon which the Developer may perform the
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Work, (3) the terms and conditions upon which the Developer will be paid for the
Work, and (4) the process that the Developer will follow to procure the Work.
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto mutually agree as follows:
1
REFERENCES
1.1. Effective Date. This Agreement shall become effective upon the completion of the
following two conditions precedent: (1) each of the Parties duly approves this
Agreement through its respective Board of Directors, Board of Port
Commissioners, City Council, principals or members, as the case may be, and the
authorized representative of each Party executes this Agreement, and (2) the
Authority adopts a Resolution making findings on the procurement process set
forth in this Agreement.
1.2. Right of Entry License. Article 7 of this Agreement contains the terms and
conditions upon which the District grants a license to Developer and its authorized
agents and contractors to enter the Premises to perform the Work. (Article 7 will
be referred to as the “Right of Entry License.”)
1.3. DDA. The Parties acknowledge and agree that the District, City, and Developer
are all parties to the DDA, and this Agreement is not intended to be a limitation of
any rights or obligations contained in the DDA, unless expressly stated herein. In
the event of a conflict between the DDA and this Agreement, the terms of this
Agreement shall control.
1.4. Representatives. Each Party to this Agreement shall have a designated
representative to serve as the primary contact person with regard to various
aspects of the implementation of this Agreement (each, a ”Representative”).
The Representatives of the Parties shall be:
Developer: Luke Charlton, Chief Operating Officer
District: Adam Meyer, Assistant Director of Real Estate and Stephanie Shook,
Department Manager, Real Estate
City: Tiffany Allen, Director of Development Services and Kimberly Elliott, Facilities
Financing Manager
Authority: For the District, Adam Meyer, Assistant Director of Real Estate and
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Stephanie Shook, Department Manager, Real Estate; for the City, Tiffany Allen,
Director of Development Services and Kimberly Elliott, Facilities Financing
Manager.
The Representatives for each Party may be changed from time to time upon written
notice to the other Parties. The roles and obligations of the Representatives shall
be limited to those set forth in this Agreement.
2
WORK TO BE PERFORMED AT DEVELOPER’S RISK
2.1. Limitations. Developer agrees to perform the Work at Developer’s own cost and
expense subject to Developer’s right to reimbursement as set forth in Sections 2.2
and 2.3 of this Agreement. Except as set forth in this Agreement, Developer shall
have no recourse against the Public Entities for any costs or expenses incurred by
Developer related to this Agreement or the Work. Notwithstanding anything to the
contrary herein, nothing in this Agreement shall amend, modify, limit or supersede
Developer's right to reimbursement or payment for any work other than the Work
from any of the Public Entities under any other agreement between Developer and
such Public Entity.
a. No Consequential Damages. No Public Entity shall, in any event, be liable
to Developer or any other person, either in contract, tort or otherwise, for
any consequential, incidental, indirect, special or punitive damages,
including loss of future revenue, income or profits, diminution of value or
loss of business reputation or opportunity relating to the breach or alleged
breach hereof, whether or not the possibility of such damages has been
disclosed to the other Party in advance or could have been reasonably
foreseen by such other Party. The foregoing shall not preclude the
Developer from enforcing its right to receive reimbursement as set forth in
Section 2.2 or 2.3 of this Agreement.
2.2. Reimbursement from Authority if the Close of Escrow Occurs. Provided that the
Close of Escrow has occurred and the Project Implementation Agreement has
been executed by the parties thereto in connection with the Close of Escrow, then
the costs and expenses actually incurred by Developer in performing the Work
hereunder, and not already paid or reimbursed by the Public Entities and in an
amount not to exceed the Budget (defined below), shall be deemed to be part of
Developer's Phase 1A Contract Sum (as defined in the Project Implementation
Agreement), and the Developer shall be entitled to reimbursement of such part of
Developer's Phase 1A Contract Sum under and in accordance with the Project
Implementation Agreement and this Section 2.2.
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a. Budget. Attached hereto as Exhibit “E” is the line item budget for the Work,
which has been approved by the Public Entities (such budget and any
amendments, supplements or other modifications thereto, in each case, as
approved by the Public Entities from time to time in accordance with this
Agreement, the “Budget”).
b. Budget Increases. The appropriate line item on the Budget will increase by
the amount of incremental costs that Developer actually incurs in
connection with the Work (including, without limitation, as a result of any
Cost Increase Event (as defined below) (less the amount of insurance
proceeds that Developer receives for such Cost Increase Event)), and such
incremental costs shall be part of the Budget if and to the extent permitted
by this Agreement. Developer shall use reasonable efforts to prosecute
each and every insurance claim with respect to any Cost Increase Event
that is covered by the insurance policies procured in accordance with this
Agreement. During the Work, Developer shall promptly notify the Public
Entities of any additional costs for the Work that are not included in the
Budget, including, without limitation, as a result of any Cost Increase Event,
and if applicable, request that such additional costs be included in the
Budget. Developer shall not request the inclusion of additional costs in the
Budget to the extent resulting from Developer’s or Developer Affiliates’ (as
defined below) negligence or willful misconduct, and such additional costs
shall not constitute a “Cost Increase Event”.
Cost Increase Event” shall include any of the following events individually
or in any combination, to the extent that (x) such event is not caused by the
negligence or willful misconduct of Developer or Developer Affiliates and (y)
such event increases the cost of performing the Work:
i) a strike, or similar labor disturbances causing a work stoppage,
excluding any such strike or work stoppage that could have been
avoided had Developer or Developer Affiliates complied with
applicable laws or labor agreements with respect to the Work, if any;
ii) hurricanes, typhoons, tornadoes, cyclones, other severe storms,
lightning or floods;
iii) days of precipitation or high winds in any month in excess of ten (10)
year average for the area within the District’s jurisdiction;
iv) an earthquake, volcanic eruptions, explosions, disease, epidemics
or other natural disaster;
v) fires (including wildfires);
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vi)inability to procure labor, utilities, equipment, materials, or supplies
in the open market due to lack of availability (but, in each case, not
attributable to a mere increase in price or Developer’s or Developer
Affiliates’ acts or failure to act);
vii) acts of war or armed conflict, insurrections, riots, and acts of
terrorism (including hijacking, chemical or biological events, nuclear
events, disease related events, arson or bombing) or, with respect to
any of the foregoing, any threat thereof;
viii) delays in the issuance of any approvals or authorizations from any
governmental authority (excluding any of the Public Entities) that is
necessary to proceed with the performance of the Work (provided
that Developer or Developer Affiliates have timely and properly filed
all applications, submitted all required documents and fees and
taken all other reasonable actions that are necessary to obtain such
approvals or authorizations and that Developer or Developer
Affiliates are not responsible for the delay in the issuance of such
approvals or authorizations);
ix) an act of God;
x) embargoes or blockades;
xi) Pre-Existing Hazardous Material (as defined in the Ground Lease)
that is not the result of Material Exacerbation (as defined in the
Ground Lease); or
xii) closures ordered by any Governmental Authority that do not arise
from a breach of this Agreement or misconduct by Developer or
Developer Affiliates;
xiii) any change in applicable law that is first effective after the Effective
Date;
xiv) any breach or interference with performance of the Work by the
governmental entities, including any Public Entity;
xv) any changes to the Work required by any public utility entity or any
governmental entity, including any Public Entity; or
xvi) any other event or circumstance (including, without limitation, bids
for the Work, and expenses described in Section 7.12, that exceed
the Budget) resulting in an unforeseen cost or cost increase not
otherwise contained in the Budget and that does not result from the
negligence or willful misconduct of Developer or any Developer
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Affiliate.
If any Cost Increase Event shall occur, Developer shall, promptly but in no
event later than ten (10) days after Developer learns of the occurrence of
such Cost Increase Event, notify the Public Entities thereof, which notice
must be made in good faith and describe the Cost Increase Event, why such
cost increase is occurring, the estimated expected amount of the cost
increase, and the commercially reasonable efforts that the Developer is
taking to minimize the cost increase. The Public Entities shall, promptly but
in no event later than ten (10) days after receipt of such notice, notify
Developer whether (x) Developer shall continue with performing the Work,
in which case the appropriate line item on the Budget shall increase by the
amount of incremental costs that Developer reasonably and actually incurs
as a result of any Cost Increase Event in accordance with this Agreement,
or (y) Developer shall stop performing the Work, in which case Developer
shall immediately stop all Work except any Work required to secure the
Work, Work area and the Premises to the satisfaction of the District, and
the Parties shall proceed under Section 2.3.
c. Increase in Payment Bonds. Any adjustment to the Budget in accordance
with Section 2.2(b) shall include a proportional increase in the penal sums
of the Payments Bonds (as defined below). Authority’s reimbursement of
such bond cost increases shall not exceed the actual cost of increasing the
penal sum of such bonds.
d. Work Reimbursement Costs. During each month after the commencement
of the Work, Developer shall submit to the Public Entities a record of costs
that have been incurred with respect to the Work during the immediately
preceding month (a “Record of Costs”). No later than thirty (30) Business
Days after the Public Entities receive a Record of Costs, the Public Entities
shall review such Record of Costs and shall, in their reasonable discretion,
determine whether the costs set forth in such Record of Costs have been
incurred by Developer in performance of the Work and do not cause the
aggregate amount of such costs to exceed the Budget, and shall provide a
notice of their determination to Developer. Any costs so determined by the
Public Entities to have been incurred by Developer in performance of the
Work up to the amount of the Budget shall hereinafter be referred to as
Work Reimbursement Costs”. After the Close of Escrow, the Authority
shall reimburse Developer for all Work Reimbursement Costs.
2.3. Reimbursement from Public Entities if the Close of Escrow Does Not Occur. In the
event that the Close of Escrow does not occur due to a termination of the DDA by
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any of the Parties, and such termination was not the result of a breach of
Developer’s obligations under the DDA, this Agreement, or any other agreement
setting forth Developer’s obligations to the Public Entities prior to the Close of
Escrow, Developer shall be entitled to reimbursement for the Work
Reimbursement Costs incurred as of the date of the termination, with each of the
District and the City being responsible for payment to Developer of fifty percent
50%) of the Work Reimbursement Costs incurred by Developer as of the date of
the termination. Provided that such termination occurs prior to the Contribution
Date (as defined in the RSA (as defined below)), the Authority, the District, and the
City acknowledge and agree that the Work Reimbursement Costs may be paid by
the District and the City from Existing Funds (as defined in the RSA) pursuant to
Section 3.2(D) of the RSA (defined below) and each of the City and the District
agree to approve any accounting submitted to one another pursuant to Section
3.2(F) of the RSA that reasonably details the payment of such Work
Reimbursement Costs to Developer that does not exceed such party’s share of the
Work Reimbursement Costs.
a.This Agreement is not intended to amend, modify, limit or supersede any
separate agreement or understanding of the Public Entities as to the
allocation of costs between City, District, and Authority related to the
Developer’s Phase 1A Infrastructure Improvements, including but not
limited to the Project Implementation Agreement and that certain Third
Amended and Restated Revenue Sharing Agreement, dated June 28, 2021,
by and among the City, the District and the Authority (as amended,
amended and restated, supplemented or otherwise modified from time to
time, the “RSA”).
3
DEVELOPER’S RESPONSIBILITIES
3.1. Conditions. Prior to and as a condition of performing any Work and entering onto
the Premises pursuant to the Right of Entry License:
a.Insurance. Developer shall purchase and maintain insurance that will
protect District, City, and Authority from claims which may result from the
undertakings of the Developer and Developer’s Affiliates, under this
Agreement, including without limitation the performance of the Work and
use of the Premises, in the applicable limits set forth in Section 4.11 of the
DDA and in the manner set forth in Sections 4.10 and 4.12-4.13 of the DDA,
if and to the extent applicable to the Work, with the exception that (x)
Worker’s Compensation may be carried by the prime contractor (including
Developer to the extent Developer is serving as prime contractor) or
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applicable subcontractors for their own workers and (y) General Liability
limits are amended to read $1,000,000 per occurrence and $2,000,000 in
the aggregate; provided, that at all times such insurance shall cover the
Work, the Premises, and any person or entity performing Work or on the
Premises pursuant to this Agreement or the Right of Entry License. The
insurance certificates shall be in the form attached as Exhibit “D”.
b. Bonds. Developer shall furnish to the District, City, and Authority a Payment
Bond and Performance Bond (each as defined in the DDA), which shall be
procured in the same manner and to the same extent as required for
Developer’s Phase 1A Infrastructure Improvements as provided in Section
4.14 of the DDA. Each Bond shall be in an amount equal to 100% of the
Budget.
c. Prevailing Wages. The Work is “Public Work” pursuant to the PWL (as
defined in Section 4.16 of the DDA) and Developer and Developer’s
Affiliates shall comply with all requirements of section 4.16 of the DDA in
their performance and completion of the Work.
d. Indemnity. Without limitation of the Developer’s other obligations under this
Agreement, the Developer agrees, at its sole cost and expense, and with
counsel selected by the applicable Public Entities, each in its reasonable
discretion, and approved by Developer in its reasonable discretion, to
indemnify, defend and hold harmless the District, the City and the Authority,
and their respective officers, directors, commissioners, employees,
partners, affiliates, agents, contractors, successors and assigns (“Public
Entities Parties”) from any claims, demands, actions, causes of action, suits
collectively, “Claims”) and any costs, damages (of all kinds including
punitive damage, diminution in value and loss of use), claims, liabilities,
expenses (including reasonable attorneys’, consultants’ and experts’ fees),
losses, fines, penalties and court costs related to the subject matter of such
costs (collectively, the “Related Costs”) and amounts paid in settlement of
any claims or actions related to the subject matter of the Related Costs (as
determined by the District, City and/or Authority, as applicable), arising out
of:
a) the obligations undertaken by the Developer and its officers, directors,
employees, partners, affiliates, agents, contractors, consultants,
invitees, successors and assigns (each a “Developer Affiliate”, and
collectively, the “Developer Affiliates”) in connection with this
Agreement, including the Right of Entry License;
b) the possession, use, occupancy, operation or development of the
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Premises by the Developer or the Developer Affiliates;
c) the approval of this Agreement or the approval of permits or approvals
granted to the Developer or a Developer Affiliate related to the Work or
the Premises, including, but not limited to, approvals or permits for the
development of any structures, buildings, installations, and
improvements on the Premises, or use of the Premises (collectively,
Related Approvals”);
d) any third party challenges to the approval of the Work and the Related
Approvals;
e) the granting or failure to grant any approvals set forth in this Agreement
collectively, “Discretionary Approvals”);
f) environmental documents, mitigation and/or monitoring plans, or
determinations conducted and adopted pursuant to CEQA or the
National Environmental Policy Act for this Agreement, Related
Approvals or Discretionary Approvals; and
g) the Developer’s obligation to comply with the PWL with respect to the
Work.
If any Public Entity determines in its reasonable discretion that there is a
conflict of interest with the Developer's counsel representing an applicable
Public Entity and the Developer, then such Public Entity, at the election of
the relevant Public Entity, may conduct such defense with its own counsel
independent from the Developer’s counsel that is selected by such Public
Entity in its reasonable discretion and is approved by the Developer in its
reasonable discretion (and in that event the Developer will select its own
counsel) and the reasonable costs incurred by such Public Entity in such
defense shall be covered by the foregoing indemnification, hold harmless
and defense obligations. If any Public Entity determines in its reasonable
discretion that there is a conflict of interest with counsel representing such
Public Entity and the other Public Entity Parties, then such Public Entity, at
its election, may conduct its own defense with its own counsel independent
from the other Public Entity Parties’ counsel which such Public Entity’s
counsel is approved by the Developer in its reasonable discretion (and in
that event such Public Entity will select its own counsel) and the reasonable
costs incurred by such Public Entity in such defense shall be covered by the
foregoing indemnification, hold harmless and defense obligations.
e. Survival. This Article 3 shall survive the expiration or earlier termination of
this Agreement.
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4
PROCUREMENT OF THE WORK
4.1. Procurement Rules. Developer acknowledges that, as a condition for Authority to
reimburse the Work, the procurement of the Work must be done in accordance
with Authority’s Procurement Policy. Except where provisions of the Procurement
Policy are duly and expressly waived in this Agreement, by resolution of the
Authority Board or by the Executive Director of the Authority, as applicable,
Developer shall comply with, and cause its contractor(s) for the Work to comply
with, the terms of the Procurement Policy.
4.2. Agreement as to Procurement Process. Pursuant to Section 5 of the Procurement
Policy, the Authority may require developers to enter into an agreement to clarify
the procurement procedures for developer-performed public work. This Agreement
shall serve to clarify the procurement procedures for the Work.
4.3. Developer as Prime Contractor. Pursuant to Section 1.c of the Procurement
Policy, a developer may serve as a prime contractor, provided that the Authority
finds, in accordance with the Procurement Policy, that the developer is qualified
and competent to complete the work. Developer has informed the Public Entities
that it intends to serve as the prime contractor for the Work, and Developer agrees
to: (1) competitively bid the subcontracts for the Work in the manner set forth in
Section 4.6 of this Agreement, and (2) not seek reimbursement from Authority for
any contractor fee Developer pays itself for serving as prime contractor.
4.4. Public Entities’ Approval. Prior to the commencement of the Work, the Public
Entities shall approve the plans and specifications with respect to the Work;
provided that in the case of the City only, such plans and specifications shall be
deemed approved if and when the City issues a building permit with respect to the
Work. For this particular Work, Developer shall not be required to contribute toward
the District’s Art Program as set forth in the District’s Tenant Percent For Art
Program (BPC Policy No. 608) as provided in Section 4.1(c) of the DDA, but by
excluding the Work from the requirements of BPC Policy No. 608, the District does
not waive any of its rights to require Developer’s participation as it relates to other
work to be performed by Developer pursuant to the DDA.
4.5. Authority Approval of Bid and Contract Documents. Pursuant to Section 2.b of the
Procurement Policy, Developer shall submit bid and contract documents to the
Authority for approval prior to commencement of the Work. Developer’s submittal
shall include any applicable governmental approvals, including any applicable City
permits. Bid and contract documents for the Work shall comply with this
Agreement. Developer shall not advertise for bids until Authority has approved the
bid and contract documents. Approval by any of the Public Entities of Developer’s
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bid and contract documents, including plans and specifications, shall not relieve
Developer of liability for any improper design or construction of the Work.
4.6. Process for Subcontractor Bids. Developer will conduct the subcontractor bidding
process and shall take responsibility for its implementation in accordance with the
Procurement Policy and this Agreement. Nothing shall preclude Developer from
proceeding with a bidding process that Developer performed prior to the Effective
Date, provided that the bidding process satisfies the requirements of the
Procurement Policy and this Agreement. The bidding process shall be as follows:
a. Budget. The line items within the Budget shall be the engineer’s estimate
referenced in the Procurement Policy.
b. Advertisement. Developer will post a formal advertisement for bids (the
Advertisement for Bids”) at least twenty-one (21) business days prior to the
deadline for receiving bids (the “Bid Receipt Deadline”). The Advertisement
for Bids will be in the publications selected by Developer. The
Advertisement for Bids will generally describe the scope of the work and
process to be used.
c. Pre-Bid Meeting. No sooner than 5 business days, and no later than 10
business days, following the posting of the Advertisement for Bids,
Developer or its authorized representative will hold an electronic pre-bid
meeting in order to answer any questions that prospective bidders may
have.
d. Bidder Qualifications. All bidders shall be licensed for such bidder’s
respective scope of work in the State of California, shall be registered with
the Department of Industrial Relations to perform public works prior to
submitting their respective bids, and shall not be debarred from performing
work by any federal or state agency or by the City or District.
e. Sealed Bids. All bids shall be sealed and opened concurrently at a public
bid opening.
f. Bid Awards. Developer shall consider all sealed responsive bids that are
submitted on or before the Bid Receipt Deadline. Developer shall award
subcontracts to the lowest responsive and responsible bidder, or the bidder
that is determined by Developer to be the “best qualified contractor” (as
defined in Section 2.d. of the Procurement Policy), subject to Authority’s
reasonable approval. Developer may, at its option, waive any defect in any
bid. Developer shall not award any bid that is more than 10% above the
Budget for the Work, in the case where the bid is for the entire Work, or the
line item in the Budget where the bid is only for a portion of the Work, unless
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the Developer receives the Authority’s written consent (in the Authority’s
sole discretion). This Section 4.6(f) shall not limit Developer's right to seek
an adjustment to the Budget for any cost or expense actually incurred by
Developer in performing the Work hereunder and that exceeds such 10%
threshold, pursuant to Section 2.2(b) for a Cost Increase Event. Developer
shall provide copies of the bids to the Public Entities prior to making an
award or rejecting a bid. Developer may, in its sole and absolute discretion,
reject any and all bids and repeat the bidding process. Developer may
require the bidder receiving the award to furnish security in addition to that
required of Developer under this Agreement.
g. Developer shall defend, indemnify and hold harmless the Public Entities
Parties from any Claims related to Developer’s procurement of
subcontractors in accordance with Section 3.1(d).
5
PERFORMANCE OF THE WORK
5.1. Project Updates. Developer shall provide the Public Entities with regular updates
regarding the performance and progress of the Work.
5.2. Standard of Performance. Developer and its agents, contractors, and
subcontractors, if any, shall perform all Work in a skillful and workmanlike manner,
and, with respect to the provisions of engineering services only, consistent with the
standards generally recognized as being employed by professionals in the same
discipline in the State of California. Developer represents and warrants that all of
its employees, agents, contractors, and subcontractors shall have all licenses,
permits, qualifications and approvals of whatever nature that are legally required
for them to perform the Work or a portion thereof, as applicable, and that such
licenses, permits, qualifications and approvals shall be maintained throughout the
term of this Agreement.
5.3. Liens and Claims. Developer agrees to cause all liens and security interests filed
in connection with the Work to be discharged in the same manner and to the same
extent as provided in Section 4.18 of the DDA for Developer’s Improvements (as
defined in the DDA).
5.4. Change Orders. Developer may request that the Public Entities approve a change
in the scope of the Work and/or a change to the approved plans and specifications
relating to the Work (a “Change Order”), in accordance with Section 3.b of the
Procurement Policy. All Change Orders shall be subject to the prior written
approval of the Public Entities (such approval not to be unreasonably withheld,
conditioned or delayed), unless exempt from prior approval pursuant to Section
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3.b of the Procurement Policy. Any Change Orders with respect to the approved
plans and specifications shall also be subject to District’s BPC Policy No. 357, and
Developer shall obtain District’s approval in accordance with such BPC Policy No.
357. A Change Order shall not result in an automatic increase to the Budget, but
this Section 5.4 shall not limit Developer’s right to seek an adjustment to the Budget
for any Change Order pursuant to the applicable provisions of Section 2.2(b) for a
Cost Increase Event.
5.5. Completion. Upon completing the Work, Developer shall notify the Public Entities
that the Work is complete (such notification, "Developer's Completion Notice"). The
Public Entities shall have thirty (30) days after receipt of Developer’s Completion
Notice to inspect the Work and determine in their reasonable discretion if there are
any defects in the Work, any incomplete Work, any Work that does not conform to
the approved plans or specifications for the Work, or any damage to the Work or
the Premises (collectively, “Outstanding Work”), and either notify the Developer of
such Outstanding Work (such notification, "Public Entities' Outstanding Work
Notice") or notify Developer that the Work is complete (such notification, "Public
Entities' Completion Notice"), as applicable. Developer shall complete to the
reasonable satisfaction of the Public Entities any Outstanding Work within thirty
30) days after Developer receives Public Entities' Outstanding Work Notice. If the
Public Entities deliver Public Entities' Outstanding Work Notice to Developer, then
the process set forth in this Section 5.5 shall be repeated until the Public Entities
deliver to the Developer Public Entities' Completion Notice. Developer
acknowledges and agrees that the inspection by the Public Entities shall not void,
alter, or modify any warranties for the Work.
a.As-Builts. Within thirty (30) days of Public Entities' Completion Notice,
Developer shall provide one (1) set of “as-built” or record drawings or plans
to the District and City. The drawings shall be certified and shall reflect the
condition of the Work as constructed, with all changes incorporated therein.
b.Notice of Completion. Developer shall record a notice of completion within
the statutory time for recording such notice and shall provide a conformed
copy of same to the Public Entities. Upon recording of such notice of
completion and, if applicable, acceptance of the improvement by any
applicable public utility receiving the improvement (provided that, in
absence of receiving a written notice of such acceptance from a public
utility, any use of the applicable improvement by such public entity shall
constitute deemed approval of such improvement by such public utility for
purposes of this Agreement), (i) neither Developer nor any Developer
Affiliate shall have care, custody, or control of any improvement that is
subject to such notice of completion, and (ii) neither Developer, nor any
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Developer Affiliate, nor any Public Entity shall have the risk of loss with
respect to any improvement that is subject to such notice of completion
where "risk of loss" means any risk of loss in connection with any casualty
event with respect to such improvement that occurs after such time and
that results in the loss of use of such improvement).
c. Removal of Liens and Security Interests. Pursuant to Section 5.3 above
and Section 4.18 of the DDA, within thirty (30) days after Developer receives
notice of filing of any lien or security interest with respect to the Work, it shall
cause such lien or security interest, as applicable, to be discharged of
record by payment, deposit, bond, order of court of competent jurisdiction
or otherwise. Notwithstanding the foregoing, Developer shall not be
required to discharge of record any such lien or security interest, as
applicable, if Developer is in good faith, and consistent with applicable law,
at its own expense, currently and diligently contesting the same; provided
that Developer first records a surety bond sufficient to release such lien or
such security interest, as applicable. Developer shall certify to the Public
Entity accepting the improvement that it has complied with the requirements
of this Section 5.5(c).
d. Utility Easement. Parties hereto acknowledge and agree that San Diego
Gas & Electric (“SDG&E”) is scheduled to commence certain work on the
Premises on or around November 1, 2021 and, as a prerequisite for SDG&E
to commence such work, District shall grant a utility easement to SDG&E,
on terms satisfactory to the District and SDG&E. For avoidance of doubt,
neither the Public Entities nor Developer shall be responsible for any actions
or omissions by SDG&E. Once the Developer has completed the necessary
work to allow SDG&E to install the cabling work for the Sandpiper SDG&E
Re-Feed Work (as described in the Work Plan), Developer shall notify
SDG&E and the Public Entities. If SDG&E is unable to install the cabling
work due to defects in Developer’s work, Developer shall repair or correct
the defects promptly.
e. Post-Completion/Restoration. The acceptance of any portion of the Work
shall not create any obligation upon any Public Entity to Developer to repair
or correct any defects in the Work.
i) If the Close of Escrow occurs, Developer shall, at its sole cost and
expense, permanently remove the Sandpiper SDG&E Re-Feed
Work constructed pursuant to the Work Plan, and restore to its pre-
Work condition the portion of the Premises that is affected by such
removal, prior to Completion (as defined in the Ground Lease) of the
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resort hotel.
ii) If the Close of Escrow does not occur, Developer shall have no
obligation to remove the Work or restore the Premises except as
provided in this Agreement.
f. Survival. This Article 5 shall survive the earlier termination or expiration of
this Agreement.
6
TERMINATION AND DEFAULT
6.1. Term and Termination. This Agreement shall remain in effect from the Effective
Date until the earlier of: (1) Developer completes the Work and all Work is accepted
by the appropriate Public Entity(ies), or (2) one (1) year, unless extended or
terminated earlier as provided herein (the “Termination Date”).
a. Extension. The Public Entities may, in each of their sole and absolute
discretion, agree in writing to extend the Termination Date; provided, that,
if Developer has performed substantial work on the Work (more than 60%),
is diligently pursuing completion of the Work, the DDA has not expired or
terminated, and Developer is not otherwise in breach of this Agreement,
then the Public Entities shall not unreasonably refuse to grant an extension.
b. Event of Default. If Developer neglects, refuses, or fails to fulfill or timely
complete any obligation, term, or condition of this Agreement, or abandons
the Work, or if the Public Entities determine there is a violation of any
federal, state, or local law, ordinance, policy, regulation, code, standard, or
other requirement, Developer shall be in default of this Agreement, upon
which the Public Entities shall make written demand upon Developer to
immediately remedy the default in accordance with this Agreement
Notice”). Developer shall substantially commence the work required to
remedy the default within fifteen (15) business days of receipt of the Notice.
If the default constitutes an immediate threat to the public health, safety, or
welfare, District’s Representative may provide the Notice verbally, and
Developer shall substantially commence to remedy the default within
twenty-four (24) hours thereof. Immediately upon issuance of the Notice,
Developer and its surety shall be liable to the Public Entities for all costs of
the Work and all other administrative costs and expenses as provided for in
this Section 6.1.
i) Nothing herein prevents the Public Entities from notifying
Developer’s surety of any default or demand to remedy a default;
provided, however, failure to give or receive notice to the surety shall
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not exonerate the surety of any obligations under the Performance
Bond.
c. Remedies for Event of Default. If Developer does not cure the default as
provided in Section 6.1(b), the Public Entities may elect to terminate this
Agreement. If the Public Entities elect to terminate this Agreement, the
District may elect that the Developer and the surety either (i) restore the
Premises to the same condition as the Premises existed prior to the
commencement of the Work; or (ii) complete and convey any particular
portion of the Work to the District in lieu of restoration of some or all of the
Premises under (i), and Developer shall proceed with such restoration or
completion of the Work at no cost to the District. If the Developer fails to
comply with any of its obligations contained herein, Developer and its surety
shall be jointly and severally liable to the Public Entities for all administrative
expenses, fees, and costs, including reasonable attorneys' fees and costs,
incurred by the Public Entities in obtaining Developer’s compliance with this
Agreement or in processing any legal action or for any other remedies
permitted by law or equity.
d. Survival. This Article 6 shall survive the expiration or earlier termination of
this Agreement.
7
RIGHT OF ENTRY LICENSE
7.1. Right-of-Entry: District hereby grants Developer, and its authorized agent(s) and
contractor(s), the right to enter upon the Premises to perform and complete the
Work, subject to the terms and conditions in this Article 7 (“Right-of-Entry
License”).
7.2. Use of Premises. The use of the Premises by the Developer and Developer’s
Affiliates for the Right of Entry License, shall be limited to the following activities:
a. Performance and completion of the Work;
b. Ingress and egress for purposes of Paragraph 7.2(a) above through roads
owned by the District and located adjacent to the Premises as shown in
Exhibit “A-2” (collectively, "Approved Routes"); and
c. Inspections, commissioning, and maintenance of the Work.
Developer’s “authorized agents and contractors” shall include the employees,
contractors, subcontractors, and agents of public utilities that Developer authorizes
to enter the Premises to perform, complete, inspect, commission, maintain or
otherwise participate in the Work.
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7.3. [INTENTIONALLY OMITTED.]
7.4. Term. This Right-of-Entry License shall commence on the Effective Date and
terminate on the Termination Date.
7.5. No Additional Rights or Interests. District's grant of the Right-of Entry License does
not: (i) confer any right or interest on Developer other than those rights or interests
expressly granted to Developer in this Right-of Entry License, as such rights or
interests are limited and qualified herein; or (ii) create or impose any obligations
on District other than those obligations expressly set forth in this Right-of Entry
License.
7.6. Consideration for Access. Developer shall pay to the District the Cost Recovery
Fees pursuant to Board of Port Commissioners Policy No. 106 in the total amount
of Five Hundred and Fifty Dollars ($550.00) payable concurrently with Developer's
execution of this Agreement.
7.7. Indemnification of District. Except for claims or litigation arising through the sole
negligence or willful misconduct of any lndemnitee or lndemnitees, Developer shall
defend, indemnify, and hold harmless District and its officers, directors, members
of the Board of Port Commissioners, employees, contractors, agents, affiliates and
successors and assigns (collectively with the District, the "lndemnitees") for any
and all causes of action, liability, claims, judgments, or demands, plus expenses
in connection therewith, arising out of or as the result of: (i) this Right-of Entry
License; (ii) Developer’s and/or its authorized agents', employees', invitees’ or
contractors' activities undertaken pursuant to this Right-of Entry License, including
without limitation, the performance of the Work; (iii) any accident or occurrence in
connection with the Work or the operation, use, condition, or possession of the
Premises, Approved Routes, or any portion thereof during the term of this Right-of
Entry License; (iv) PWL (defined above); or (v) the District's approval or issuance
of this Right-of Entry License, including but not limited to the District's review and
approval under the California Environmental Quality Act and the California Coastal
Act (collectively, an "Indemnified Claim"). Said expenses shall include without
limitation costs of investigation and remediation of environmental conditions,
counsel, consultant and/or expert fees and expenses, and penalties and interest
as incurred, regardless of the cause thereof or the cause of action, liability, claim,
judgment, or demand, no matter when made or filed. Developer’s obligation to
indemnify Indemnitees pursuant to this Section 7.7 shall apply regardless of the
extent, if any, to which such Indemnified Claim is based, in whole or in part, on
preexisting conditions at the Premises, including without limitation Environmental
Conditions, as defined in the Acknowledgment and Disclosure Regarding
Environmental Conditions, attached hereto as Exhibit "C", and incorporated by
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reference herein. Notwithstanding the foregoing, Developer shall have no
obligation to indemnify, defend or hold harmless any lndemnitee for any
Indemnified Claim that arises out of any preexisting hazardous material condition
that is not known to Developer, unless such Indemnified Claim arises out of the
negligence of, or breach of this Agreement by, Developer or one or more of the
contractors, agents, employees or invitees. For purposes of this Section 7.7, a
preexisting hazardous material condition shall be deemed to be known to
Developer if (1) Developer has actual knowledge of the condition through its
employees, consultants, agents or anyone hired by Developer to investigate the
conditions of the Premises, or (2) should have reasonably been anticipated by
Developer through review of the District files, Developer’s files, other public files,
readily available information or information described in Exhibit “C”, an ALTA
survey, walk through, and any other reasonable pre-construction investigation or
assessment of the Premises.
7.8. [Intentionally Omitted.]
7.9. Modifications. District and Developer may only modify the Right-of-Entry License
in writing, and a written modification shall not require the consent of the City or
Authority to be effective. Developer shall give prompt notice to City of any
modification to the Right-of-Entry License that materially impact Developer’s
performance of, or ability to complete, the Work.
7.10. Work Product Related to Condition of Premises. At the request of District,
Developer shall provide the District with complete copies of any information, data,
studies, analyses, sampling results, and results, in each case, to the extent they
are prepared for or result from the Work, including without limitation any
investigation and/or remediation activities and any reports and/or work plans
related thereto which Developer prepares or obtains, or contracts with third parties
to prepare or obtain, regarding the condition of the Premises. Developer shall
provide a copy to City and Authority of anything provided to District pursuant to this
Section 7.10.
7.11. Additional Work and Documentation. Developer shall provide the District with any
additional information and documentation, that is reasonably requested by the
District and that developers performing work similar to the Work customarily
provide to their respective right of entry licensors, relating to the Work, the activities
of Developer and its authorized agents and contractors on or in connection with
the Premises and the Work that is necessary to coordinate access to the Premises
and the performance of the Work. Developer shall pay any costs and expenses
related to the relocation of any construction equipment, debris, asphalt, soil, or
improvements necessary to perform the Work and to access the Premises.
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Developer may seek reimbursement of such costs and expenses only if subject to
reimbursement pursuant to Section 2.2 or Section 2.3, as applicable. Developer
shall pay any costs and expenses related to the Work and access to the Premises
by Developer and its authorized agent(s) and contractors. Developer may seek
reimbursement of such costs and expenses only if subject to reimbursement
pursuant to Section 2.2 or Section 2.3, as applicable.
7.12. Permits. Developer shall acquire all permits required by applicable law, including
without limitation, the ordinances and policies of the Public Entities. Developer
shall perform and complete the Work in strict accordance with this Agreement, all
permits for the Work, and all applicable District construction and design standards.
Developer shall obtain all permits and authority from governmental entities and
agencies that are necessary for the performance of the Work and access to the
Premises. Except as set forth herein, the District shall not incur any cost or
expense as a result of this Agreement. Developer agrees that any costs (including
but not limited to plan checking, inspection, materials furnished and other
incidental expenses) incurred by the District in connection with the inspection,
approval or the installation of the Work, will be paid by Developer. Such costs and
expenses in connection with permitting and the inspection, approval or the
installation of the Work shall be included in the Budget and subject to
reimbursement.
7.13. Conformance with Laws. Developer agrees that, in all activities on or in connection
with the Premises, and in all uses thereof, including without limitation the Work and
access to the Premises, it shall abide by and conform to all laws and regulations.
Said laws and regulations shall include, but are not limited to those prescribed by
the San Diego Unified Port District Act; any applicable ordinances of the City,
including the Building Code thereof; any ordinances and general rules of District,
including tariffs and policies; and any applicable laws of the state of California and
federal government, as any of the same now exist or may hereafter be adopted or
amended. In particular and without limitation, Developer shall have the sole and
exclusive responsibility to comply with the requirements of: (i) Article 10 of District
Code entitled "Stormwater Management and Discharge Control", and (ii) the
Americans With Disabilities Act of 1990, including but not limited to regulations
promulgated thereunder. At no time shall Developer or its authorized agents or
contractors park vehicles on the Approved Routes, place or store any materials or
equipment on the Approved Routes, or limit, block or impede the ability of any
person to use any of the Approved Routes.
7.14. Utilities. Developer shall determine the location of all utilities in, on, under, and
over the Premises and take necessary precautions to prevent interruption of any
utility service. However, should any interruption of any utility service occur as a
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result of the Work, Developer shall bear the sole expense and cost regarding said
interruption.
7.15. Engineering and Inspection. Developer must at all times maintain proper facilities
and safe access for inspection of the Work by District and City inspectors.
7.16. Outside Agency Inspections. Developer shall make available for District inspection
all final outside agency inspection approvals (including but not limited to City
inspection approvals) when the Work is completed.
7.17. Hazardous Materials. Developer is alerted that Work in this Agreement involves
working environments that may be hazardous, contaminated, or non-hazardous to
activities associated with the excavation, handling, transportation, and disposal of
all excavated materials and other wastes in the project area with emphasis to
hazardous and contaminated materials. Such hazardous, contaminated, and non-
hazardous environments include, and are not limited to hazardous and non-
hazardous materials, soils, groundwater, heavy metals, petroleum hydrocarbons,
polynuclear aromatic hydrocarbons, organic compounds, serpentine rock and
ultramafic material (which may contain natural occurring asbestos - NOA), lead-
based paint materials, sewage, sludge, debris, grit, sewer gases,
bacterial/biological contamination, railroad ties, oxygen deficiency, and confined
spaces. In the performance of the Work, Developer shall implement a Health and
Safety Plan (HSP), provide full-time environmental oversite during drilling, and
utilize a Photoionization detector (PID) and visual observation to evaluate if spoils
are impacted with chemicals of potential concern (COPCs).
Developer shall legally dispose of off tidelands all hazardous waste, hereinafter
Waste", extracted or removed by Developer in connection with this Agreement
and the Work on the Premises. Developer shall be responsible for managing and
disposing of said Waste in accordance with all applicable laws and regulations. All
Waste, including but not limited to hazardous and non-hazardous Waste, shall only
be disposed at permitted California landfills (22 CCR 66262), equivalent out-of-
state landfills (40 CFR 262), and permitted recycling facilities. In addition,
Developer or its contractor shall list itself as the generator of said Waste on the
disposal facility's waste manifest and any waste disposal profile. In any event,
Developer shall not store such Waste on the Premises for any period of time.
Notwithstanding the foregoing, Developer shall be permitted to store all spoils on
the Premises for such period of time as is reasonably necessary to classify such
spoils as hazardous or non-hazardous and to await transportation of the hazardous
spoils in conformance with all applicable laws and regulations.
7.18. Assumption of Risk. Developer assumes all responsibility and risk for any damage
and/or consequence resulting from Developer's activities, including without
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limitation access to the Premises, the Work and all costs associated therewith.
Developer shall repair any damage to the Premises, including without limitation,
any damage to the improvements of the District, arising out of or resulting from
Developer's activities, including without limitation, the Work and access to the
Premises, and at the election of the District, restore the Premises, to the
reasonable satisfaction of the District. Developer shall repair any damage to the
Premises including without limitation, any damage to the improvements of the
District, prior to the expiration of this Agreement. Developer agrees to perform the
Work in accordance with the plans and specifications approved by the District.
7.19. Securing Premises. Prior to commencement of construction of the Work, where
applicable, Developer shall secure the Premises where Work is being performed
with temporary fencing which shall remain until such time as that Work is complete.
7.20. RV Park Excluded. Notwithstanding anything in this Agreement to the contrary,
the Right-of-Entry License shall not include the right to enter any portion of the
Premises set forth on Exhibit “A-2” as “Encumbered,” which is currently occupied
by Sun Chula Vista Existing Park RV LLC, a Michigan limited liability company
operating as the Chula Vista RV Resort pursuant to Tideland Use and Occupancy
Permit dated February 28, 2019 between the District and Sun Chula Vista filed in
the Office of the District Clerk as Document No. 69412.
8
MISCELLANEOUS PROVISIONS
8.1. Drafting Party. The District, City, Authority, and Developer acknowledge and agree
that this Agreement has been agreed to by the District, City, Authority, and
Developer, that the District, City, Authority, and Developer have consulted with
attorneys with respect to the terms of this Agreement and that no presumption shall
be created against the drafting party. Any deletion of language from this
Agreement prior to its execution by District, City, Authority, or Developer shall not
be construed to raise any presumption, canon of construction or implication,
including, without limitation, any implication that the District, City, Authority, or
Developer intended thereby to state the converse of the deleted language. Unless
otherwise specified in this Agreement, any approval or consent to be given by
District, City, Authority, or Developer may be given or withheld in the sole and
absolute discretion of District, City, Authority, or Developer, respectively.
8.2. Incorporation of Recitals. All recitals above are incorporated into this Agreement
and are made a part hereof.
8.3. Venue. Venue for any legal proceeding shall be in San Diego County, California.
This Agreement shall be construed and enforced in accordance with the laws of
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the State of California.
8.4. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which shall constitute one Agreement after
each Party has signed such a counterpart.
8.5. Electronic Signatures. The words “execution”, “execute”, “signed”, “signature”,
and words of like import in or related to any document signed or to be signed in
connection with this Agreement and the transactions contemplated hereby shall
be deemed to include electronic signatures and contract formations on electronic
platforms approved by the Parties, or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the California Uniform Electronic Transaction Act, or any other similar state laws
based on the Uniform Electronic Transactions Act.
8.6. Dispute Resolution. The Parties shall, before the filing of any lawsuit or court
action against any other Party relating to this Agreement or the Work, attempt in
good faith to settle the dispute through non-binding third party mediation.
8.7. Administrative Claims Requirements and Procedures. No suit shall be brought
arising out of this Agreement against City unless a claim has first been presented
in writing and filed with City and acted upon by City in accordance with the
procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same
may be amended, the provisions of which, including such policies and procedures
used by City in the implementation of same, are incorporated herein by this
reference. No suit shall be brought arising out of this Agreement against District or
Authority unless a claim has first been presented in writing and filed with District or
Authority, respectively, and acted upon by District or Authority, respectively, in
accordance with the procedures set forth in the Government Claims Act
Government Code sections 900 et seq.)
8.8. CONTRACTOR’S LICENSE NOTICE. CONTRACTORS ARE REQUIRED BY
LAW TO BE LICENSED AND REGULATED BY THE CONTRACTORS STATE
LICENSE BOARD, WHICH HAS JURISDICTION TO INVESTIGATE
COMPLAINTS AGAINST CONTRACTORS IF A COMPLAINT REGARDING A
PATENT ACT OR OMISSION IS FILED WITHIN 4 YEARS OF THE DATE OF THE
ALLEGED VIOLATION. A COMPLAINT REGARDING A LATENT ACT OR
OMISSION PERTAINING TO STRUCTURAL DEFECTS MUST BE FILED
WITHIN 10 YEARS OF THE DATE OF THE ALLEGED VIOLATION. ANY
QUESTIONS CONCERNING A CONTRACTOR MAY BE REFERRED TO
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THE REGISTRAR, CONTRACTORS STATE LICENSE BOARD, P.O. BOX
26000, SACRAMENTO, CA 95826.
Remainder of page intentionally left blank.]
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By: _____________________
Glen R. Googins
City Attorney
CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY ,
a California joint exercise of powers authority
By: __________________________
Joe Stuyvesant, Executive Director
Approved as to form and legality:
COUNSEL
By:__________________________
Thomas A. Russell, General Counsel, San Diego Unified Port District
Co-Counsel
By: _____________________
Glen Googins, City Attorney, City of Chula Vista
Co-Counsel
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A-1 Exhibit A
EXHIBIT “A-1”
PROPERTY DESCRIPTION
Those areas generally shown as the “Premises” in the attached Exhibit “A-2” (Map Identifying the Premises) which include
portions of Parcel H-3, Parcel H-8, Parcel HP-1(N), Parcel HP-1S, Parcel HP-3B, Parcel HP-11, and Parcel H-9 of the Chula
Vista Bayfront Master Plan and surrounding areas, but specifically excluding that portion marked as “Encumbered”. Such
Premises” shall not include any areas outside the premises boundary of the Coastal Development Permit filed in the Office
of the District Clerk as Document No. 70152.
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A-2 Exhibit A
EXHIBIT “A-2”
MAP IDENTIFYING THE PREMISES
See attached)
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B-1 Exhibit B
EXHIBIT “B”
DESCRIPTION OF EARLY PHASE 1A INFRASTRUCTURE WORK
1. Sandpiper SDG&E Re-feed
Trench, backfill, and install conduits and cabling on Marina Parkway from approximately 100’
southerly of Sandpiper, northerly along Marina Parkway, then westerly along Sandpiper to an
existing SDGE service point at the corner of N-S and E-W Sandpiper. Includes the installation of
SDGE Infrastructure. Upon completion of connections, remove all SDG&E cabling in N-S section
of Sandpiper to G Street.
Sandpiper SDG&E Re-feed is temporary. The Phase 1A infrastructure includes services that will
feed this service from H Street (when constructed).
Easements required: E-W Sandpiper is a Port Street, an easement for SDGE is required.
Expected duration of easement necessity is 2 years after which time the easement could be
terminated and new permanent easement and service from H Street is provided.
Trenching, backfill, and conduit work will be performed by RIDA Chula Vista, LLC, Subcontractor
yet to be selected. Cabling work will be performed by SDG&E.
2. Sandpiper AT&T Re-feed
Trench and install conduits and cabling on Marina Parkway from G Street southerly along Marina
Parkway, then westerly along Sandpiper to an existing AT&T service point adjacent to the existing
RV Park. Includes the installation of AT&T Infrastructure. Upon completion of connections,
remove all AT&T cabling in N-S section of Sandpiper to G Street.
That portion of the Sandpiper AT&T on Marina Parkway and Utility Corridor is Permanent. That
portion of the Sandpiper AT&T Re-feed on E-W Sandpiper is temporary and will be replaced with
a service from H Street (when constructed).
Easements required: AT&T has no existing easements in the H-3 project area. Marina Parkway
is currently a City of CV Street. No temporary easements to AT&T are currently proposed. A
permanent easement in the Utility Corridor will be provided prior to Hotel Occupancy.
Conduit work will be performed by RIDA Chula Vista, LLC, Subcontractor yet to be selected.
Cabling work will be performed by AT&T.
3. G Street and Sandpiper Gas removal/abandonment
Cap existing gas main at G Street/Marina Parkway. Excavate and remove existing gas main on
G Street from Marina Parkway to Sandpiper. Abandon existing gas main in Sandpiper from G
Street south.
Work is permanent. No easements are required.
All work will be performed by SDG&E.
4. Rohr Gas RFS
Cap existing Rohr Gas main in Marina Parkway at the Sandpiper Intersection. Excavate and
remove existing Rohr Gas main in Marina Parkway from Sandpiper, northerly to existing service
at Rohr. All work is performed by SDG&E.
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 29Page 615 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
B-2 Exhibit B
Work is permanent. Marina Parkway is currently a City of CV street. No temporary easements
are required. H Street (Marina Parkway to Bay) must be dedicated as a public street or permanent
easement prior to Hotel Occupancy.
All work will be performed by SDG&E.
5. G Street Overhead Interim Relocation
Install interim overhead utility poles and SDG&E and AT&T cabling from Marina Parkway/G Street
Intersection, westerly at the edge of the limits of work of the Gaylord Pacific Project (northerly of
existing and proposed G Street) to the Sandpiper/G Street Intersection. Trench and install
conductors to the existing underground SDGE and AT&T infrastructure in G Street. Remove
existing overhead utility poles and cabling on G Street from Marina Parkway westerly.
G Street OH Interim relocation is temporary. The Phase 1A infrastructure includes services that
will feed this service in G Street (when constructed).
Easements required: An easement for the alignment is required and combined with the temporary
construction site power. Expected duration of easement necessity is 3 years.
Underground excavation, trenching, conduit, and pavement repair will be performed by RIDA. All
overhead pole and wiring installations and removals will be performed by SDG&E and AT&T.
6. Sandpiper Water and Sewer Caps
Cap existing sewer at G Street/Sandpiper intersection. Cap existing water mains at G
Street/Sandpiper, the Southwest Sandpiper turn, westerly end of Bayside Parkway, and north end
of Quay Avenue all to remove water service from the North-South section of Sandpiper Way
Work is permanent. No easements are required.
All work will be performed by RIDA Chula Vista, LLC, Subcontractor yet to be selected.
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 30Page 616 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
C-1 Exhibit C
EXHIBIT “C”
ACKNOWLEDGMENT AND DISCLOSURE
REGARDING ENVIRONMENTAL CONDITIONS
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 31Page 617 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
C-2 Exhibit C
ACKNOWLEDGMENT AND DISCLOSURE REGARDING ENVIRONMENTAL
CONDITIONS
IT IS HEREBY ACKNOWLEDGED BY RIDA Chula Vista, LLC, a Delaware limited liability
company, a "Right of Entry Developer", hereinafter "Developer", and the San Diego
Unified Port District, a public corporation, hereinafter "District", that:
1.Certain Environmental Conditions may: (a) exist at, under, on, or near: (i) the Premises,
as defined in the Chula Vista Bayfront Project Phase 1A Early Work Implementation and
Right of Entry License Agreement by and among the District, Developer, City of Chula
Vista, a chartered municipal corporation (“City”), and the Chula Vista Bayfront Facilities
Financing Authority, a California joint exercise of powers authority (“Authority”) dated
September 1, 2021, hereinafter "Agreement"; (ii) the Approved Routes, as defined in the
Agreement; and (iii) property which is contiguous, upgradient, or otherwise in the vicinity
of the Premises and Approved Routes, hereinafter "Surrounding Property''; and (b) be
encountered during activity undertaken pursuant to the Agreement, including without
limitation the Work, as defined therein.
For purposes of this Acknowledgment and Disclosure, the term "Environmental
Conditions" means: (a) any environmental conditions, circumstances, or other matters of
fact pertaining to, relating to, or otherwise affecting the environment, including without
limitation: (i) any natural resources (including flora and fauna), soil, surface water,
groundwater, any present or potential drinking water supply, subsurface strata, or the
ambient air; and (ii) the presence, use, handling, storage, treatment, recycling,
generation, transportation, release, spilling, leaking, pumping, pouring, emptying,
discharging, injecting, escaping, leaching, dumping, or disposal (including without
limitation the abandonment or discarding of barrels, containers, and other closed
receptacles and fill materials containing any hazardous materials, hazardous wastes, or
toxic substances); and (iii) the threatened release of hazardous materials, hazardous
wastes, or toxic substances; and (b) the exposure of any persons (including without
limitation lessees, licensees, permittees, or other users of the Premises, Approved
Routes and/or Surrounding Property) to hazardous materials, hazardous wastes, or toxic
substances; and (c) the exposure of other natural persons within or outside the
boundaries of the Premises, Approved Routes, and/or the Surrounding Property to
hazardous materials, hazardous wastes, or toxic substances related to or otherwise
arising from operations, acts, omissions, or other conduct at the Premises, Approved
Routes, and/or Surrounding Property (as the case may be).
2.Information relating to Environmental Conditions at, under, on, or near the Premises,
Approved Routes, and/or Surrounding Property developed as a result of sampling,
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 32Page 618 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
C-3 Exhibit C
testing, and analysis undertaken from time to time by District, District tenants, third-party
contractors and/or others, may be contained in certain District files, hereinafter "District
Files". Subject to reasonable confidentiality assurances from Developer, District will make
District Files available to Developer for review. District has not undertaken to conduct,
and District Files do not represent a comprehensive analysis of Environmental Conditions
at, under, on, or near the Premises, Approved Routes, and/or Surrounding Property.
3.Information relating to Environmental Conditions at, under, on, or near the Premises,
Approved Routes, and/or Surrounding Property may be contained in Developer's files,
hereinafter "Developer's Files".
4.Information relating to Environmental Conditions at, under, on, or near the Premises,
Approved Routes, and/or Surrounding Property may be contained in the files of other
governmental entities or agencies, including without limitation the San Diego Regional
Water Quality Control Board, San Diego Department of Health Services, San Diego Air
Pollution Control District, Chula Vista Fire Department, City of Chula Vista, California
Department of Toxic Substances Control, California Environmental Protection Agency,
and Region IX of the United States Environmental Protection Agency, hereinafter
Agency Files". Said Agency Files are readily available to Developer.
District's knowledge and files regarding Environmental Conditions at, under, on, or near
the Premises, Approved Routes, and/or Surrounding Property are not complete. District
has encouraged Developer to review all readily available information relating to such
Environmental Conditions, including the: (a) EIR/RAP/RIFS, etc., if available; (b) District
Files; (c) Developer's Files: and (d) Agency Files, hereinafter collectively "Readily
Available Information", to ascertain to the fullest extent possible the nature and existence
of Environmental Conditions at, under, on, or near the Premises, Approved Routes,
and/or Surrounding Property. Developer hereby assumes responsibility for ascertaining
any information contained in the Readily Available Information.
5.Neither District nor Developer makes any representation or warranty, express or implied,
in this Acknowledgment and Disclosure, the Agreement or otherwise, regarding the: (a)
presence, extent, impact, or consequences, whether foreseeable or unforeseeable, of
any Environmental Conditions at, under, on, or near the Premises, Approved Routes,
and/or Surrounding Property, or (b) suitability of the Premises in any respect for any
purpose intended by Developer under the Agreement.
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 33Page 619 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
ocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 34Page 620 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
D-1 Exhibit D
EXHIBIT "D"
CERTIFICATE OF INSURANCE
See attached)
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 35Page 621 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
D-2 Exhibit D
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 36Page 622 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
D-3 Exhibit D
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 37Page 623 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
E-1 Exhibit E
EXHIBIT "E"
BUDGET
DocuSign Envelope ID: 4331686C-AB25-47B2-8343-18D07558D784
73207 38Page 624 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
ertificate Of Completion
Envelope Id: 4331686CAB2547B2834318D07558D784 Status: Completed
Subject: Please DocuSign: RIDA Early Work Implementation Agreement and ROE_Sep2021.pdf
Source Envelope:
Document Pages: 38 Signatures: 9 Envelope Originator:
Certificate Pages: 5 Initials: 0 Gabby Livingston
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
3165 Pacific Highway
San Diego, CA 92101
glivingston@portofsandiego.org
IP Address: 207.215.153.162
Record Tracking
Status: Original
9/15/2021 2:07:24 PM
Holder: Gabby Livingston
glivingston@portofsandiego.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: San Diego Unified Port District Location: DocuSign
Signer Events Signature Timestamp
Thomas A. Russell
trussell@portofsandiego.org
General Counsel
San Diego Unified Port District
Security Level: Email, Account Authentication
None)
Signature Adoption: Drawn on Device
Using IP Address: 68.96.65.125
Signed using mobile
Sent: 9/15/2021 2:14:32 PM
Viewed: 9/16/2021 9:01:55 AM
Signed: 9/16/2021 9:02:48 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Anthony Gordon
agordon@portofsandiego.org
Director
Port
Security Level: Email, Account Authentication
None)
Signature Adoption: Drawn on Device
Using IP Address: 207.215.153.162
Sent: 9/16/2021 9:02:50 AM
Resent: 9/22/2021 9:33:22 AM
Viewed: 9/29/2021 4:59:25 PM
Signed: 9/29/2021 5:05:32 PM
Electronic Record and Signature Disclosure:
Accepted: 5/3/2021 3:49:21 PM
ID: 823f8640-56d5-4576-9287-be2bab34fb9b
Company Name: San Diego Unified Port District
Glen Googins
GGoogins@chulavistaca.gov
City Attorney
City of Chula Vista
Security Level: Email, Account Authentication
None)
Signature Adoption: Uploaded Signature Image
Using IP Address: 209.242.148.130
Sent: 9/29/2021 5:05:34 PM
Viewed: 9/30/2021 8:06:40 AM
Signed: 9/30/2021 8:07:12 AM
Electronic Record and Signature Disclosure:
Accepted: 7/1/2021 4:10:53 PM
ID: 186a48a0-3d96-40ed-8040-6e72df254e14
Company Name: San Diego Unified Port District
Maria Kachadoorian
mkachadoorian@chulavistaca.gov
City Manager
City of Chula Vista
Security Level: Email, Account Authentication
None)
Signature Adoption: Pre-selected Style
Using IP Address: 209.242.148.130
Sent: 9/30/2021 8:07:15 AM
Viewed: 9/30/2021 10:17:23 AM
Signed: 9/30/2021 11:15:43 AM
Electronic Record and Signature Disclosure:
Reference Copy
73207(5)
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City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
igner Events Signature Timestamp
Accepted: 9/9/2021 11:09:18 AM
ID: 8b777dba-cb89-4990-a8f3-fd1c2f6d9455
Company Name: San Diego Unified Port District
Joe Stuyvesant
jstuyvesant@portofsandiego.org
PRESIDENT/CEO
Security Level: Email, Account Authentication
None)Signature Adoption: Pre-selected Style
Using IP Address: 207.215.153.162
Sent: 9/30/2021 11:15:46 AM
Viewed: 9/30/2021 12:51:20 PM
Signed: 9/30/2021 12:51:48 PM
Electronic Record and Signature Disclosure:
Accepted: 9/30/2021 12:51:20 PM
ID: 0b2083a9-6f2f-409c-8f22-bc9fa5d0f3cb
Company Name: San Diego Unified Port District
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Sally Raney
sraney@portofsandiego.org
Security Level: Email, Account Authentication
None)
Sent: 9/30/2021 12:51:51 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/15/2021 2:14:32 PM
Certified Delivered Security Checked 9/30/2021 12:51:20 PM
Signing Complete Security Checked 9/30/2021 12:51:48 PM
Completed Security Checked 9/30/2021 12:51:51 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
Page 626 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, San Diego Unified Port District (we, us or Company) may be required by law
to provide to you certain written notices or disclosures. Described below are the terms and
conditions for providing to you such notices and disclosures electronically through the DocuSign
system. Please read the information below carefully and thoroughly, and if you can access this
information electronically to your satisfaction and agree to this Electronic Record and Signature
Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to
use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign
system.
Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available
electronically to you by us. You will have the ability to download and print documents we send
to you through the DocuSign system during and immediately after the signing session and, if you
elect to create a DocuSign account, you may access the documents for a limited period of time
usually 30 days) after such documents are first sent to you. After such time, if you wish for us to
send you paper copies of any such documents from our office to you, you will be charged a
0.00 per-page fee. You may request delivery of such paper copies from us by following the
procedure described below.
Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time
change your mind and tell us that thereafter you want to receive required notices and disclosures
only in paper format. How you must inform us of your decision to receive future notices and
disclosure in paper format and withdraw your consent to receive notices and disclosures
electronically is described below.
Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the
speed at which we can complete certain steps in transactions with you and delivering services to
you because we will need first to send the required notices or disclosures to you in paper format,
and then wait until we receive back from you your acknowledgment of your receipt of such
paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to
receive required notices and consents electronically from us or to sign electronically documents
from us.
All notices and disclosures will be sent to you electronically
Electronic Record and Signature Disclosure created on: 4/29/2021 8:53:11 AM
Parties agreed to: Anthony Gordon, Glen Googins, Maria Kachadoorian, Joe Stuyvesant
Page 627 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Unless you tell us otherwise in accordance with the procedures described herein, we will provide
electronically to you through the DocuSign system all required notices, disclosures,
authorizations, acknowledgements, and other documents that are required to be provided or made
available to you during the course of our relationship with you. To reduce the chance of you
inadvertently not receiving any notice or disclosure, we prefer to provide all of the required
notices and disclosures to you by the same method and to the same address that you have given
us. Thus, you can receive all the disclosures and notices electronically or in paper format through
the paper mail delivery system. If you do not agree with this process, please let us know as
described below. Please also see the paragraph immediately above that describes the
consequences of your electing not to receive delivery of the notices and disclosures
electronically from us.
How to contact San Diego Unified Port District:
You may contact us to let us know of your changes as to how we may contact you electronically,
to request paper copies of certain information from us, and to withdraw your prior consent to
receive notices and disclosures electronically as follows:
To contact us by email send messages to: rsanagus@portofsandiego.org
To advise San Diego Unified Port District of your new email address
To let us know of a change in your email address where we should send notices and disclosures
electronically to you, you must send an email message to us at rsanagus@portofsandiego.org and
in the body of such request you must state: your previous email address, your new email
address. We do not require any other information from you to change your email address.
If you created a DocuSign account, you may update it with your new email address through your
account preferences.
To request paper copies from San Diego Unified Port District
To request delivery from us of paper copies of the notices and disclosures previously provided
by us to you electronically, you must send us an email to rsanagus@portofsandiego.org and in
the body of such request you must state your email address, full name, mailing address, and
telephone number. We will bill you for any fees at that time, if any.
To withdraw your consent with San Diego Unified Port District
To inform us that you no longer wish to receive future notices and disclosures in electronic
format you may:
Page 628 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
i. decline to sign a document from within your signing session, and on the subsequent page,
select the check-box indicating you wish to withdraw your consent, or you may;
ii. send us an email to rsanagus@portofsandiego.org and in the body of such request you must
state your email, full name, mailing address, and telephone number. We do not need any other
information from you to withdraw consent.. The consequences of your withdrawing consent for
online documents will be that transactions may take a longer time to process..
Required hardware and software
The minimum system requirements for using the DocuSign system may change over time. The
current system requirements are found here: https://support.docusign.com/guides/signer-guide-
signing-system-requirements.
Acknowledging your access and consent to receive and sign documents electronically
To confirm to us that you can access this information electronically, which will be similar to
other electronic notices and disclosures that we will provide to you, please confirm that you have
read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for
your future reference and access; or (ii) that you are able to email this ERSD to an email address
where you will be able to print on paper or save it for your future reference and access. Further,
if you consent to receiving notices and disclosures exclusively in electronic format as described
herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before
clicking ‘CONTINUE’ within the DocuSign system.
By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm
that:
You can access and read this Electronic Record and Signature Disclosure; and
You can print on paper this Electronic Record and Signature Disclosure, or save or send
this Electronic Record and Disclosure to a location where you can print it, for future
reference and access; and
Until or unless you notify San Diego Unified Port District as described above, you
consent to receive exclusively through electronic means all notices, disclosures,
authorizations, acknowledgements, and other documents that are required to be provided
or made available to you by San Diego Unified Port District during the course of your
relationship with San Diego Unified Port District.
Page 629 of 761
City of Chula Vista - City Council
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X-2-1
4825-3218-1203/024036-0079
Exhibit X-2
Reimbursement Agreement
To be attached prior to execution.]
Page 630 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
1 City of Chula Vista Agreement No.: 2019-097
RIDA CHULA VISTA, LLC
CITY OF CHULA VISTA
REIMBURSEMENT AGREEMENT
WITH RIDA CHULA VISTA, LLC
TO DESIGN SPECIFIED BAYFRONT INFRASTRUCTURE IMPROVEMENTS
This REIMBURSEMENT AGREEMENT (“Agreement”) is entered into as of this 15th
day of September, 2020 (the “Execution Date”) by and among the City of Chula Vista, a chartered
municipal corporation (“City”) and RIDA Chula Vista, LLC, a Delaware limited liability company
Developer”) (collectively, the “Parties” and, individually, a “Party”). with reference to the
following Recitals:
RECITALS
A. WHEREAS, City, Developer, and the San Diego Unified Port District (“District”)
entered into a Disposition and Development Agreement for the Resort Hotel Convention Center
Project (Chula Vista Bayfront Master Plan Parcel H-3), effective May 7, 2018 (the “DDA”); and
B. WHEREAS, the scope of development attached to the DDA (the “Scope of
Development”) provides that the Developer shall construct certain infrastructure improvements,
consisting of: E Street (from G Street to H Street), the G Street Connection, H Street (Bay
Boulevard to Street A), H Street (Marina Parkway to E Street), Harbor Park (Initial), H -3 Site
Prep, and the H-3 Utility Corridor (the “Developer’s Phase 1A Infrastructure Improvements”) in
connection with the development of the Developer’s Private Improvements (as defined in the
DDA); and
C. WHEREAS, Section 4.7(c) of the DDA provides that the District and the City shall
reimburse the Developer in cash for any and all funds expended prior to the DDA Close of Escrow
by the Developer in connection with design, architectural work, and engineering work for the
Developer’s Phase 1A Infrastructure Improvements as set forth in the Scope of Development, other
than the amounts that have been paid to Developer pursuant to Section 4.8(e) of the DDA, from
the first disbursement of the Public Fund Contribution pursuant to the construction loan account
instructions; and
D. WHEREAS, the Scope of Development attached to the DDA provides that the in -
road sewer facilities included in the Developer’s Phase 1A Infrastructure Improvements (the
Developer’s Sewer Improvements”) shall be funded by the City’s Sewer Facility Contribution;
and
E. WHEREAS, the Developer and the City have negotiated and anticipate executing
the City of Chula Vista Reimbursement Agreement with RIDA Chula Vista, LLC to Construct
Specified Bayfront Sewer Improvements (the “Sewer Reimbursement Agreement”) for this
purpose; and
DocuSign Envelope ID: 73AA68A0-8A6C-46AE-97A8-DFA944D7CB78
R2020-171
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2 City of Chula Vista Agreement No.: 2019-097
RIDA CHULA VISTA, LLC
F. WHEREAS, the Sewer Reimbursement Agreement provides a mechanism for the
City to reimburse the Developer in cash for any and all funds expended prior to the DDA Close of
Escrow by the Developer in connection with design, architectural work, and engineering work for
the Developer’s Sewer Improvements; and
G. WHEREAS, the scope of this Agreement is therefore limited to the Developer’s
Phase 1A Infrastructure Improvements, excluding the Developer’s Sewer Improvements (the
Project”); and
H. WHEREAS, the City has identified and set aside funds generated by the Bayfront
project sufficient for this purpose; and
I. WHEREAS, Developer desires to enter into this Agreement with the City, so that
it may obtain reimbursement for the eligible costs of designing Developer’s Phase 1A
Infrastructure Improvements incurred prior to DDA Close of Escrow.
AGREEMENT
NOW THEREFORE, in consideration of the above Recitals, the covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties
hereby acknowledge, City and Developer agree as follows:
ARTICLE I. DEFINITIONS
In this Agreement, unless the context otherwise requires, the following terms and phrases shall
have the following meanings:
1.1. Agreement. “Agreement” means this Reimbursement Agreement between the City and the
Developer. The term “Agreement” shall include any amendment to the Agreement properly
approved and executed pursuant to the terms of this Agreement.
1.2. City. “City” means the City of Chula Vista. Unless specifically provided otherwise,
whenever this Agreement requires an action or approval by City, that action or approval
shall be performed by the City representative designated by the Agreement.
1.3. City Council. “City Council” means the governing body of the City.
1.4. City Manager. “City Manager” means the City Manager of City or his or her designee.
1.5. Cutoff Date. “Cutoff Date” means ninety (90) days from the DDA Close of Escrow.
1.6. CVMC. “CVMC” has the meaning given to such term in the Recitals.
1.7. DDA. “DDA” has the meaning given to such term in the Recitals.
DocuSign Envelope ID: 73AA68A0-8A6C-46AE-97A8-DFA944D7CB78
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3 City of Chula Vista Agreement No.: 2019-097
RIDA CHULA VISTA, LLC
1.8. DDA Close of Escrow. “DDA Close of Escrow” means Close of Escrow as such term is
defined in the DDA.
1.9. Design Professional(s). “Design Professional(s)” means persons or entities providing
design, architecture, landscape architecture, survey, or engineering work or services for the
Developer’s Phase 1A Infrastructure Improvements.
1.10. Developer. “Developer” has the meaning given to such term in the preamble.
1.11. Developer’s Phase 1A Infrastructure Improvements. “Developer’s Phase 1A Infrastructure
Improvements” has the meaning given to such term in the Recitals.
1.12. Developer’s Sewer Improvements. “Developer’s Sewer Improvements” has the meaning
given to such term in the Recitals.
1.13. Director of Development Services. “Director of Development Services” means the
Director of Development Services of City or his or her designee.
1.14. District. “District” has the meaning given to such term in the Recitals.
1.15. Eligible Expenses. “Eligible Expenses” means costs that the City shall reimburse
Developer for the Project, not to exceed the Estimated Cost.
1.16. Estimated Cost. “Estimated Cost” means the design cost of the Project to be incurred prior
to DDA Close of Escrow, estimated to total $715,000, as shown in Exhibit A, attached
hereto. As the Estimated Cost is not initially the result of contracts for the actual design,
it is subject to change during the contract negotiation process as well as during the design
phase, subject to approval of the Parties.
1.17. Execution Date. “Execution Date” has the meaning given to such term in the preamble.
1.18. Holiday. “Holiday” means the City-observed holidays listed below (if any holiday listed
falls on a Saturday, then the Saturday and the preceding Friday are both legal holidays. If
the holiday should fall on a Sunday, then the Sunday and the following Monday are both
legal holidays):
Holiday Observed On
New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
Caesar Chavez Day March 31
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veteran’s Day November 11
DocuSign Envelope ID: 73AA68A0-8A6C-46AE-97A8-DFA944D7CB78
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4 City of Chula Vista Agreement No.: 2019-097
RIDA CHULA VISTA, LLC
Thanksgiving Day Fourth Thursday in November
Thanksgiving Day Friday Friday after Thanksgiving
Christmas Day December 25
1.19. Maximum Reimbursement Amount. “Maximum Reimbursement Amount” means the
lesser of the Estimated Cost, as may be amended from time to time, or the amount of
Reimbursable Costs that is calculated during the Final Accounting (as defined below).
1.20. Non-Reimbursable Costs. “Non-Reimbursable Costs” means the following costs that shall
not be eligible for reimbursement under this Agreement: Costs Incurred Due to Negligence
or Unapproved Costs, each as further defined in Section 6.1.4.1.
1.21. Party. “Party” has the meaning given to such term in the preamble.
1.22. Payment Date. “Payment Date” means twenty (20) days following the date on which
Developer submits a complete Reimbursement Request (as reasonably determined by the
Director of Development Services) or a Reimbursement Request that is complete with
respect to a portion of the requested reimbursement (as reasonably determined by the
Director of Development Services).
1.23. Project. “Project” has the meaning given to such term in the Recitals.
1.24. Project Improvements. “Project Improvements” or “Improvements” means the
Developer’s Phase 1A Infrastructure Improvements, excluding Developer’s Sewer
Improvements.
1.25. Public Fund Contribution. “Public Fund Contribution” has the meaning given to such term
in the DDA.
1.26. Reimbursable Costs. “Reimbursable Costs” means costs of the design of the Developer’s
Phase 1A Infrastructure Improvements that have been expended by Developer and
approved by the City through approval procedures described in the Agreement.
1.27. Reimbursement Request. “Reimbursement Request” means a reimbursement request
package submitted to the City containing the items listed in Section 6.1.2.1.
1.28. Scope of Development. “Scope of Development” has the meaning given to such term in
the Recitals.
1.29. Sewer Facility Contribution. “Sewer Facility Contribution” means the contribution by the
City to fund specific sewer facility improvements comprising part of the RHCC Public
Improvements as may be more specifically described in the Plan of Finance (as defined in
the DDA).
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1.30. Sewer Reimbursement Agreement. “Sewer Reimbursement Agreement” has the meaning
given to such term in the Recitals.
1.31. Working Day(s). “Working Day(s)” means Monday through Friday, excluding Holidays.
ARTICLE II. SUBJECT OF THE AGREEMENT - GENERALLY
The above-listed Recitals are true and correct and are hereby incorporated by this reference. All
attachments to this Agreement as Exhibits are incorporated into this Agreement by this reference.
2.1. Developer’s Design of Phase 1A Infrastructure Improvements. Except as expressly
provided in this Agreement, Developer shall cause the design of the Phase 1A
Infrastructure Improvements, in accordance with all the terms and conditions of this
Agreement and for no more than Maximum Reimbursement Amount.
2.2. City Payment. City shall reimburse Developer, subject to the terms and conditions herein,
for the Eligible Expenses of design and engineering of Developer’s Phase 1A Infrastructure
Improvements.
ARTICLE III. DURATION OF AGREEMENT
3.1. Term of Agreement. This Agreement shall become effective on the Execution Date
following City Council’s approval, and the term of this Agreement shall extend until the
earlier of (i) such time as all executory terms have been completed and (ii) earlier
termination of this Agreement.
ARTICLE IV. PROJECT COSTS
4.1. Estimated Cost. The Estimated Cost of the Project is seven hundred and fifteen thousand
dollars ($715,000), as shown in Exhibit A, attached hereto.
4.2. Adjustment to Estimated Cost. The Estimated Cost is subject to change by the methods
identified in this Agreement.
4.3. Notification of Increased Costs. If, at any time, Developer definitively establishes that the
amount to be expended on the Project will exceed the Estimated Cost, Developer shall
promptly, and in any case not more than ten (10) Working Days after the Developer
definitively establishes the amount of the increase, notify the City thereof in writing. This
written notification shall include an itemized cost estimate and a list of recommended
revisions (e.g., deductive changes) which Developer believes will bring the design cost to
within the Estimated Cost. The City may either: (i) approve an increase in Estimated Cost
which approval shall not be unreasonably withheld, conditioned, or delayed); or (ii)
reasonably delineate a project which may be designed for the Estimated Cost; provided
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that such delineation does not have a material and adverse effect on the design,
development, or construction of the Developer’s Private Improvements (as defined in the
DDA) or the Convention Center (as defined in the DDA); or (iii) any combination of (i)
and (ii).
ARTICLE V. DESIGN STANDARDS
5.1. Standard of Care. Developer agrees that it will require that the services provided as part
of this Agreement be performed in accordance with the standards customarily adhered to
by experienced and competent professional architectural, engineering, and landscape
architecture firms (as applicable) using the degree of care and skill ordinarily exercised by
reputable professionals practicing in the same field of service in the State of California.
5.1.1. Compliance with all Laws. Developer shall comply, and require compliance by
any and all of its Design Professionals, employees, and agents with all laws,
including but not limited to all local, City, San Diego County, State of California,
and federal laws, codes and regulations, ordinances and written publicly available
policies, including, but not limited to, Development Services Department permits,
state and local Building Codes, stormwater regulations, etc.
5.2. City Approval Not a Waiver of Obligations. Where approval by the City, the City
Manager, or other representative of City is required, it is understood to be general approval
only and does not relieve Developer of responsibility for complying with all applicable
laws, codes, and good consulting, design, and construction practices and is not an
assumption of liability by the City, except in the case of City’s express waiver of the
requirement to comply with (a) any City requirement, to the extent such requirement is
waivable, or (b) any good consulting, design, or construction practice. Nor shall City,
through approval, become an insurer or surety of work associated with the approvals.
ARTICLE VI. REIMBURSEMENT/PAYMENT OF COSTS AND EXPENSES
6.1. Payment of Costs Associated with Project
6.1.1. Maximum Reimbursement Amount. The maximum amount of reimbursement for
Project shall not exceed the Maximum Reimbursement Amount. Developer shall
not be entitled to payment in excess of the Maximum Reimbursement Amount.
6.1.2. Prerequisites to Payment.
6.1.2.1. Reimbursement Request. Prior to reimbursement of any costs or expenses
for the Project, Developer shall provide the City with a Reimbursement
Request containing the following:
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a. Invoices. Developer shall provide the Director of Development
Services all invoices for Reimbursable Costs associated with
Project, not previously paid by the City, within 30 days after receipt
thereof.
b. Proof of Payment. Developer shall provide the Director of
Development Services with proof of payment of all invoices for
Reimbursable Costs submitted within 30 days after such payment.
c. Certification of Payment. Developer shall provide the Director of
Development Services with a written certification that all costs for
which Developer is seeking reimbursement have been paid.
d. Acknowledgement of Subcontractors. Developer shall provide the
Director of Development Services with a letter from each firm (e.g.
civil, survey, and geotechnical) acknowledging that eligible soft
costs included in the relevant invoices have been paid.
e. Other Documents. Developer shall provide the Director of
Development Services with any other documents that reasonably
may be needed to evaluate the eligibility of the cost/expense as
Reimbursable Costs as determined necessary by the Director of
Development Services in his/her sole discretion.
City shall not have an obligation to make payment to Developer unless
and until Developer provides the Director of Development Services with
a Reimbursement Request containing all of the applicable items listed
above and such Reimbursement Request is approved by the Director of
Development Services as provided below.
6.1.2.2. City Approval. The Director of Development Services shall review each
Reimbursement Request and the supporting documentation. If the
Director of Development Services finds that any such Reimbursement
Request is incomplete, improper, or otherwise not suitable for
reimbursement, then the Director of Development Services shall so
inform Developer in writing within fifteen (15) Working Days after
receipt thereof of the reasons for his/her finding. If the Director of
Development does not find that any such Reimbursement Request is
incomplete, improper, or otherwise not suitable for reimbursement, then
the Director of Development Services shall so inform Developer in
writing within fifteen (15) Working Days after receipt thereof and within
that time period approve the Reimbursement Request. Developer shall
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have the right to respond to such finding by submitting further
documentation requested in such finding after receipt of said finding. The
Director of Development Services shall review any further documentation
received from Developer in support of the Reimbursement Request and
inform Developer of his/her approval or denial of the Reimbursement
Request, in whole or in part, within ten (10) Working Days after receipt
of such further documentation. If the Director of Development Services
determines that the Reimbursement Request is incomplete, but that
sufficient and complete information exists with respect to a portion of the
Reimbursement Request, then the Director of Development Services may
but is not obligated to approve the Reimbursement Request with respect
to such portion of the Reimbursement Request. The City shall cause the
Director of Development Services to carry out its duties under this Section
6.1.2.2 in a reasonable and good faith manner.
6.1.3. Time of Payment. After Developer has obtained City’s approval, in whole or in
part, of a Reimbursement Request pursuant to 6.1.2, City shall reimburse Developer
for the approved costs/expenses associated with each Reimbursement Request by
the Payment Date. If the Payment Date falls on a weekend or holiday, the Payment
Date shall be extended to the next Working Day.
6.1.3.1. Additional Costs. Any costs that may accrue, such as interest on late
payments to Developer’s Design Professionals as a result of the
Developer’s failure to provide a complete Reimbursement Request, shall
not be the obligation of the City if the City has not received a complete
Reimbursement Request. Such additional costs shall be the obligation of
the Developer and not eligible for reimbursement.
6.1.4. Reimbursement Amount per Reimbursement Request. The City shall pay Developer
approved amounts in the Reimbursement Request, less any Non-Reimbursable
Costs and Contested Charges (as defined below), in accordance with Section 6.1.3.
6.1.4.1. Non-Reimbursable Costs. The following costs/expenses shall not be
eligible for reimbursement under this Agreement.
a. Costs Incurred Due to Negligence. Developer shall not be entitled
to payment for any incremental cost or expense incurred due to
negligent acts, negligent omissions, or willful misconduct of
Developer or Developer’s Design Professionals, or any of their
respective contractors, subcontractors, employees, or agents.
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b. Unapproved Costs. Developer shall not be entitled to
reimbursement for any cost or expense that has not been approved
by the City to the extent provided in Section 6.1.2.2.
c. Additional Costs. Developer shall not be entitled to reimbursement
for additional costs to the extent provided in Section 6.1.3.1.
d. Requests After Cutoff Date. Developer shall not be entitled to
reimbursement for costs included in Reimbursement Requests
submitted after the Cutoff Date to the extent provided in Section
6.1.5.
6.1.4.2. Contested Charges. In the event that the City contests any cost/expense
on an invoice received (“Contested Charge”), the City shall provide
Developer a written statement of the Contested Charges, the reason why
the costs/expenses are contested, and a proposed resolution.
a. Appeal to City Manager. Developer may appeal the City’s
determination of any Contested Charges. The appeal must be
received by the City within 30 days after the City notifies the
Developer of such Contested Charge. During the appeal period, and
as long as any Contested Charges remain disputed, Developer shall
proceed with the Project, and the City shall compensate Developer
for the undisputed amounts. If, following the appeal, the City
Manager determines that any Contested Charges are eligible for
reimbursement, such amounts shall be included in the next payment
to Developer.
6.1.5. Cutoff for Submission of Invoices. Developer shall submit its final Reimbursement
Request not later than the Cutoff Date. Any Reimbursement Requests submitted
after the Cutoff Date shall not be reviewed or included in Reimbursable Cost. The
final payment by the City for the Project will be made only after Developer has
submitted all documentation reasonably necessary to substantiate the cost of the
Project.
6.1.6. Final Accounting. Following completion of the Project, Developer shall submit a
final accounting (“Final Accounting”) to the City in order to determine the cost of
the Project. Developer shall also submit all supporting information reasonably
necessary to document costs/expenses for the Project, including specific details on
the costs and work attributable to the Project, including as applicable, third-party
invoices, billings, and receipts.
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6.1.6.1. True-up Payments. Within 30 Working Days following a Final
Accounting, the City shall determine whether the actual payments made
to the Developer equal the audited approved costs and expenses. In the
event that the amount of the approved costs and expenses exceeds the
amount of the actual payments, the City shall make a true-up payment to
Developer for the difference; however, in no event, shall the true-up
payment cause the total amount paid to exceed the Maximum
Reimbursement Amount. If the Final Accounting shows that the amount
of actual payments to Developer exceeds the amount of the approved costs
and expenses, Developer shall remit or cause the remittance of the
difference to the City within twenty (20) Working Days of a notice of
deficiency.
ARTICLE VII. INDEMNITY AND DUTY TO DEFEND
7.1. Defense, Indemnity, and Hold Harmless.
7.1.1. General Requirement. Developer shall defend, indemnify, protect, and hold
harmless (collectively, “Indemnify”) the City, its elected and appointed officers,
agents and employees (collectively, the “Indemnified Parties”), from and against
any and all claims, demands, causes of action, costs, expenses, liabilities, loss,
damages, and injuries (collectively, “Loss”), in law or equity, to property, including
takings claims, or persons, including wrongful death, to the extent and proportion
directly or indirectly caused by any negligent acts or negligent omissions, or
negligence or willful misconduct of Developer, its officials, officers, contractors,
Design Professional(s), agents, or employees arising out of or in connection with
the performance of the Project or this Agreement; provided, however, from and
after the tenth (10th) anniversary of the date of the DDA Close of Escrow, Developer
shall have no obligation to Indemnify the Indemnified Parties for any Loss that
arises out of any design or other defect in connection with the Project.
This indemnity provision does not include any claims, damages, liability, costs and
expenses (including without limitations, attorneys’ fees) arising from the sole
negligence, active negligence or willful misconduct of the City, its officials,
officers, agents, or employees. Also covered by this provision is liability arising
from, connected with, caused by, or claimed to be caused by the active or passive
negligent acts or negligent omissions of the City, its agents, officers, officials or
employees which may be in combination with, and to the extent and proportion
caused by, the active or passive negligent acts or negligent omissions of Developer,
its officials, officers, contractors, Design Professional(s), agents, or employees.
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7.1.2. Costs of Defense and Award. Developer shall immediately accept all tenders and
defend, at Developer’s own cost, expense and risk, any and all claims, demands,
suits, actions, or other legal or administrative proceedings that may be brought or
instituted against the City, its officials, officers, employees, and/or agents and that
appear to be covered by the defense obligation defined in Section 7.1.1. Developer
acknowledges and agrees that its obligation to accept tender and defend the City,
its officials, officers, employees, and/or agents as provided in this Section 7.1.2 is
absolute and not subject to any limitations in Section 7.1.1 of this Agreement, or
elsewhere. Developer shall pay and satisfy any judgement, award, or decree that
may be rendered against City or its officials, officers, employees, and/or agents, for
any and all related legal expense and costs incurred by each of them to the extent
of Developer’s actual determined negligence, subject to the limitations in Section
7.1.1. The City may, in its reasonable discretion, participate in the defense of any
and all suits, actions, or other legal proceedings that may be brought or instituted
against the City, its officials, officers, employees, and/or agents, and the Developer
shall have the obligation to reimburse the City for any costs of defense incurred by
the City, including, without limitation, reimbursement for attorneys’ fees, experts’
fees and other costs. Prior to incurring any defense costs, the City agrees to notify
the Developer and offer to meet-and-confer with the Developer to discuss
practicable measures to manage total defense costs. The City’s participation shall
not relieve the Developer of any of its obligations under this Article VII.
7.1.3. Insurance Proceeds. Developer’s obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the City, its officials, officers, employees,
and/or agents.
7.1.4. Declarations. Developer’s obligations under Article VII shall not be limited by
any prior or subsequent declaration by Developer.
7.1.5. Enforcement of Costs. Developer agrees to pay any and all costs, including
attorneys’ fees that the City incurs enforcing the indemnity and defense provisions
set forth in Article VII.
7.1.6. Survival. Developer’s obligations under Article VII shall survive the expiration
and/or termination of this Agreement.
ARTICLE VIII. INSURANCE REQUIREMENTS
8.1. Insurance Requirements. Developer shall, and shall require its architects, engineers,
contractors, subcontractors, and other persons and entities providing services for or
performing work on the Project to purchase and maintain insurance in the same manner
and to the same extent as required by Section 4.10 of the DDA.
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ARTICLE IX. RECORDS AND AUDITS
9.1. Retention of Records. Developer shall maintain data and records related to this Agreement
for a period of not less than three (3) years following receipt of final payment under this
Agreement.
9.2. Audit of Records. At any time during normal business hours and as often as the City deems
necessary, Developer and any or all of Developer’s Design Professionals shall make
available to the City for examination at reasonable locations within the City/County of San
Diego all of the data and records with respect to all matters covered by this Agreement.
Developer and Developer’s Design Professionals will permit the City to make audits of all
invoices, materials, payrolls, records of personnel, and other data and media relating to all
matters covered by this Agreement. If records are not made available within the
City/County of San Diego, then Developer shall pay all the City's travel related costs to
audit the records associated with this Agreement at the location where the records are
maintained. Such costs will not be Reimbursable Costs.
9.2.1. Costs. Developer and Developer’s agents shall allow City to audit and examine
books, records, documents, and any and all evidence and accounting procedures
and practices that City reasonably determines are necessary to discover and verify
all costs of whatever nature, which are claimed to have been incurred, anticipated
to be incurred, or for which a claim for additional compensation have been
submitted under this Agreement.
ARTICLE X. MISCELLANEOUS PROVISIONS
10.1. Notices. All notices and demands given pursuant to this Agreement shall be written. They
shall be deemed served (i) immediately, upon personal delivery; (ii) the next Working Day,
if sent prepaid by recognized overnight service such as FedEx for delivery the next
Working Day; or (iii) three (3) Working Days after deposit in the United States mail,
certified or registered mail, return receipt requested, first-class postage prepaid. Until
notice of a change of address is properly given, notice shall be given:
If to City: City of Chula Vista
Attn: City Manager
276 Fourth Avenue
Chula Vista, California 91910
With a copy to: Office of the City Attorney
Attn: City Attorney
276 Fourth Avenue
Chula Vista, California 91910
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If to Developer: RIDA Chula Vista, LLC
Attention: Legal Department
1777 Walker Street, Suite 501
Houston, Texas 77010
With a copy to: Latham & Watkins
Attn: Steven Levine
12670 High Bluff Drive
San Diego, CA 92130
10.2. Captions. Captions in this Agreement are inserted for convenience of reference. They do
not define, describe or limit any term of this Agreement.
10.3. Entire Agreement. This Agreement embodies the entire agreement and understanding
between the Parties regarding the subject matter hereof. No prior or contemporaneous oral
or written representations, agreements, understandings and/or statements regarding its
subject matter shall have any force or effect. This Agreement is not intended to supersede
or amend any other agreement between the Parties unless expressly noted. However, all
previous written agreements, remain in full force and effect except to the extent they
conflict with this Agreement.
10.4. Severability. If any provision of this Agreement or its particular application is held invalid
or unenforceable, the remaining provisions of this Agreement, and their application, shall
remain in full force and effect, unless a Party's consideration materially fails as a result.
10.5. Recordation. The City may record this Agreement in the Office of the County Recorder of
San Diego County, California.
10.6. Preparation of Agreement. No inference, assumption or presumption shall be drawn from
the fact that a Party or its attorney drafted this Agreement. It shall be conclusively
presumed that all Parties participated equally in drafting this Agreement.
10.7. Authority. Each Party warrants and represents that it has legal authority and capacity to
enter into this Agreement, and that it has taken all necessary action to authorize its entry
into this Agreement.
10.8. Modification. This Agreement may not be modified, terminated or rescinded, in whole or
in part, except by written instrument duly executed and acknowledged by the Parties hereto,
their successors or assigns.
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10.9. Governing Law and 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 shall be the City of San Diego.
10.10. Administrative Claims. No suit or arbitration shall be brought arising out of this Agreement
against the City unless a claim has first been presented in writing and filed with the City
and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of
the CVMC, as same may from time to time be amended (the provisions of which are
incorporated by this reference as if fully set forth herein), and such policies and procedures
used by City in the implementation of same.
10.11. Non-liability of City Officials and Employees. No member, official, employee or
consultant of the City shall be personally liable to Developer in the event of any default or
breach by City, or for any amount which may become due to Developer, or on any
obligations under the terms of this Agreement.
10.12. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be the original and all of which shall constitute one and the same document.
10.13. Electronic Signatures. The words “execution”, “execute”, “signed”, “signature”, and
words of like import in or related to any document signed or to be signed in connection
with this Agreement and the transactions contemplated hereby shall be deemed to include
electronic signatures, the electronic matching of assignment terms and contract formations
on electronic platforms approved by the Parties, or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as the case
may be, to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the California Uniform
Electronic Transaction Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.
End of page. Signature page follows this page.]
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IN WITNESS WHEREOF, this Reimbursement Agreement is executed as of the day and
year first set forth above.
CITY
CITY OF CHULA VISTA, a California
charter city and municipal corporation
By:
Maria Kachadoorian, City Manager
ATTEST:
By:
Kerry Bigelow, City Clerk
APPROVED AS TO FORM:
By:
Glen R. Googins, City Attorney
DEVELOPER
RIDA CHULA VISTA, LLC, a Delaware
limited liability company
California Contractor License Number:
1039979
By: *
Ira M. Mitzner, Manager
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EXHIBIT A
ESTIMATED COST
Improvement Description Design Cost Estimate1
E Street (G Street to H Street) 315,000
G Street Connection 35,000
H Street (Bay Blvd to Street A) 20,000
H Street (Marina Pkwy to E Street) 270,000
H-3 Utility Corridor 75,000
Total $715,000
1 Cost Estimates are in 2019 dollars
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X-3-1
4825-3218-1203/024036-0079
Exhibit X-3
Sewer Agreement
To be attached prior to execution.]
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RIDA CHULA VISTA, LLC
CITY OF CHULA VISTA
REIMBURSEMENT AGREEMENT
WITH RIDA CHULA VISTA, LLC
TO CONSTRUCT SPECIFIED BAYFRONT SEWER IMPROVEMENTS
This REIMBURSEMENT AGREEMENT (“Agreement”) is entered into as of this 15th
day of September, 2020 (the “Execution Date”) by and among the City of Chula Vista, a chartered
municipal corporation (“City”) and RIDA Chula Vista, LLC, a Delaware limited liability company
Developer”) (collectively, the “Parties” and, individually, a “Party”), with reference to the
following Recitals:
RECITALS
A. WHEREAS, City, Developer, and the San Diego Unified Port District (“District”)
entered into a Disposition and Development Agreement for the Resort Hotel Convention Center
Project (Chula Vista Bayfront Master Plan Parcel H-3), effective May 7, 2018 (the “DDA”); and
B. WHEREAS, the Scope of Development attached to the DDA provides that the
Developer shall in connection with the development of Developer’s Private Improvements (as
defined in the DDA) construct certain in-road sewer improvements, consisting of E Street (from
G Street to H Street), the G Street Connection, and the H-3 Utility Corridor (collectively, the
Developer’s Sewer Improvements” or “Project”), to be funded by the City’s Sewer Facility
Contribution; and
C. WHEREAS, pursuant to Chula Vista Municipal Code (“CVMC”) Section
13.14.030(B) (Connection to Public Sewer – Fee), any person desiring to connect, directly or
indirectly, any parcel or any building thereon to any public sewer which has been constructed at
no cost to the parcel to be connected shall pay the one-time required fee for sewer connection to
the City, with all revenue derived from such fees to be deposited into the Sewer Income Fund; and
D. WHEREAS, pursuant to CVMC Chapter 3.16 (Sewer Income Fund), all revenues
collected under CVMC Section 13.14.030(B) shall be deposited into the “Sewer Income Fund”
and may be used, in the discretion of the City Council (as defined below) and pursuant to a written
contract, to reimburse any person who has constructed sewer facilities to the extent, as determined
by the City Council, that such sewer facilities have benefited other properties; and
E. WHEREAS, the Developer’s Sewer Improvements are eligible for reimbursement
from the Sewer Income Fund; and
F. WHEREAS, the City has sufficient funds in the Sewer Income Fund to reimburse
Developer for the design, development and construction of the Developer’s Sewer Improvements;
and
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G. WHEREAS, Developer desires to enter into this Agreement with the City, so that
it may obtain reimbursement for the eligible costs of designing, developing and constructing
Developer’s Sewer Improvements.
AGREEMENT
NOW THEREFORE, in consideration of the above Recitals, the covenants contained
herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties
hereby acknowledge, City and Developer agree as follows:
ARTICLE I. DEFINITIONS
In this Agreement, unless the context otherwise requires, the following terms and phrases shall
have the following meanings:
1.1. Acceptance. “Acceptance” means Project acceptance pursuant to standard and customary
City practices immediately following Substantial Completion of the Project.
1.2. Agreement. “Agreement” means this Reimbursement Agreement between the City and the
Developer. The term “Agreement” shall include any amendment to the Agreement
properly approved and executed pursuant to the terms of this Agreement.
1.3. Approved Drawings and Specifications. “Approved Drawings and Specifications” means
the drawings and specifications for the Developer’s Sewer Improvements as approved and
permitted by the City.
1.4. BMP. “BMP” has the meaning given to such term in Section 8.1.3.
1.5. Chula Vista Standard Special Provisions. “Chula Vista Special Standard Provisions”
means Section 1-2 of Part 1, Part 2, Part 3, and Part 4 of the City of Chula Vista Standard
Special Provisions.
1.6. City. “City” means the City of Chula Vista. Unless specifically provided otherwise,
whenever this Agreement requires an action or approval by City, that action or approval
shall be performed by the City representative designated by the Agreement.
1.7. City Attorney. “City Attorney” means that position established pursuant to and in
accordance with CVMC Chapter 2.11.
1.8. City Council. “City Council” means the governing body of the City.
1.9. City Engineer. “City Engineer” means that position established pursuant to and in
accordance with CVMC Chapter 2.06.
1.10. City Manager. “City Manager” means the City Manager of City or his or her designee.
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1.11. Competitive Bid or Solicitation Process. “Competitive Bid or Solicitation Process” has the
meaning given to such term in Section 6.1.
1.12. Contested Charge. “Contested Charge” has the meaning given to such term in Section
9.1.5.3.
1.13. Contract Documents. “Contract Documents” includes, but is not limited to: the prime
construction contract(s), prime construction contract(s) exhibits and addenda,
subcontract(s), subcontract(s) exhibits and addenda, and any of the following: notice
inviting bids, instructions to bidders, bid (including documentation accompanying bid and
any post-bid documentation submitted prior to notice of award), the bonds, the general
conditions, permits from City or other agencies, the special provisions, the plans, standard
plans, standard specifications, reference specifications, the Approved Drawings and
Specifications, and all modifications issued after the execution of the subcontract(s), in
each case, in connection with the Project.
1.14. Cutoff Date. “Cutoff Date” means one (1) year from the date of Acceptance of the Project.
1.15. CVMC. “CVMC” has the meaning given to such term in the Recitals.
1.16. DDA. “DDA” has the meaning given to such term in the Recitals.
1.17. DDA Close of Escrow. “DDA Close of Escrow” means Close of Escrow as such term is
defined in the DDA.
1.18. Defective Work. “Defective Work” means all work, material, or equipment that is
unsatisfactory, faulty, incomplete, or does not substantially conform to the Contract
Documents.
1.19. Design and Construction Standards. “Design and Construction Standards” means the
edition of the City-adopted Design and Construction Standards for public works projects
that is in effect when the Approved Drawings and Specifications are approved by the City
for purposes of the bids and which is available in the City’s Department of Engineering
and Capital Projects and on the City’s website.
1.20. Developer. “Developer” has the meaning given to such term in the preamble.
1.21. Developer’s Sewer Improvements. “Developer’s Sewer Improvements” has the meaning
given to such term in the Recitals.
1.22. Director of Development Services. “Director of Development Services” means the
Director of Development Services of City or his or her designee.
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1.23. District. “District” has the meaning given to such term in the Recitals.
1.24. Estimated Cost. “Estimated Cost” means the total cost of the design, development and
construction of the Developer’s Sewer Improvements, as estimated by preliminary
engineering studies to total $1,195,000, as shown in Exhibit A attached hereto. As
Estimated Cost is not initially the result of competitive bids for the actual design,
development and construction, it is subject to change during the competitive bid process as
well as during the design and construction phases, subject to approval of the Parties.
1.25. Execution Date. “Execution Date” has the meaning given to such term in the preamble.
1.26. Final Accounting. “Final Accounting” has the meaning given to such term in Section 9.1.7.
1.27. General Contractor. “General Contractor” means a party or parties under any contract with
the Developer to perform the work or provide supplies for the Developer’s Sewer
Improvements.
1.28. Greenbook. “Greenbook” means sections 1-1 through 1-5 of Part 1, section 2-11 of Part
1, Part 2, Part 3, Part 4, and Part 5 of the 2012 edition of the Standard Specifications for
Public Works Construction.
1.29. Ground Lease. “Ground Lease” means that certain San Diego Unified Port District Lease
to RIDA Chula Vista, LLC of Property Located at Chula Vista, California to be executed
by the Developer and the District pursuant to the DDA.
1.30. Hazardous Materials. “Hazardous Materials” means hazardous waste or hazardous
substances as defined in any federal, state, or local statue, ordinance, rule, or regulation
applicable to the Property, including, without limitation the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended (Title 42) United States
Code sections 9601-9675), the Resource Conservation and Recovery Act (Title 42 united
States Code sections 6901-6992k), the Carpenter Presley-Tanner Hazardous Substance
Account Act (Health and Safety Code sections 25300-25395.15), and the Hazardous Waste
Control Law (Health and Safety Code sections 25100-25250.25). “Hazardous Materials”
shall also include asbestos or asbestos containing materials, radon gas, and petroleum or
petroleum fractions, whether or not defined as hazardous waste or hazardous substance in
any such statute, ordinance, rule, or regulation.
1.31. Holiday. “Holiday” means the City-observed holidays listed below (if any holiday listed
falls on a Saturday, then the Saturday and the preceding Friday are both legal holidays. If
the holiday should fall on a Sunday, then the Sunday and the following Monday are both
legal holidays):
Holiday Observed On
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New Year’s Day January 1
Martin Luther King, Jr. Day Third Monday in January
Caesar Chavez Day March 31
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Thanksgiving Day Friday Friday after Thanksgiving
Christmas Day December 25
1.32. Illegal Discharge. “Illegal Discharge” has the meaning given to such term in Section
14.1.3.
1.33. Maximum Reimbursement Amount. “Maximum Reimbursement Amount” means the
lesser of the Estimated Cost, as may be amended from time to time, or the amount of
Reimbursable Costs that is calculated during the Final Accounting (as defined below).
1.34. Non-Reimbursable Costs. “Non-Reimbursable Costs” means the following costs that shall
not be eligible for reimbursement under this Agreement: Costs Incurred Due to
Negligence, Unapproved Costs, Excess Costs, Non-Project Shared Costs, and Defective
Work Costs each as further defined in Section 9.1.5.2.
1.35. Notice of Completion. “Notice of Completion” means the standard document recorded by
the City upon completion of a public works project in accordance with City’s standard and
customary practices.
1.36. Party. “Party” has the meaning given to such term in the preamble.
1.37. Payment Date. “Payment Date” means twenty (20) days following the date on which
Developer submits a complete Reimbursement Request (as reasonably determined by the
Director of Development Services) or a Reimbursement Request that is complete with
respect to a portion of the requested reimbursement (as reasonably determined by the
Director of Development Services).
1.38. Pre-Existing Hazardous Material: “Pre-Existing Hazardous Material” means any
Hazardous Material located on or under the Project Site prior to the Execution Date,
whether known or unknown, or any Hazardous Material located outside the Project site
including any premises owned by the City) prior to the Execution Date that migrates to
the Project site thereafter.
1.39. Project. “Project” has the meaning given to such term in the Recitals.
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1.40. Project Improvements. “Project Improvements” or “Improvements” means the
Developer’s Sewer Improvements.
1.41. Project Site. “Project Site” means the location of the Project for purposes of pre-
construction services and construction.
1.42. Reimbursable Costs. “Reimbursable Costs” means costs of the design, development and
construction (including (i) the premium cost of builder’s risk insurance, (ii) the premium
cost of liability insurance, (iii) all other approved premium insurance costs, and (iv)
builder’s risk insurance deductible, liability insurance deductible, and self-insured
retention (SIR) costs not-to-exceed $25,000 per occurrence and with an aggregate cap in
an amount approved by the City) of the Developer’s Sewer Improvements that have been
expended by Developer and approved by the City through approval procedures described
in the Agreement.
1.43. Reimbursement Request. “Reimbursement Request” means a reimbursement request
package submitted to the City containing the items listed in Section 9.1.3.1.
1.44. Sewer Facility Contribution. “Sewer Facility Contribution” means the contribution by the
City to fund specific sewer facility improvements comprising part of the RHCC Public
Improvements described in Exhibit A attached hereto and as may be more specifically
described in the Plan of Finance (as defined in the DDA).
1.45. Sewer Income Fund. “Sewer Income Fund” means the fund designated as the “sewer
income fund” with respect to the Developer’s Sewer Improvements pursuant to and in
accordance with CVMC Section 3.16.010.
1.46. Sewer Income Fund Eligible Expenses. “Sewer Income Fund Eligible Expenses” means
costs for which the City shall reimburse Developer from the Sewer Income Fund (or an
alternative source of funds identified by the City) for the design, development and
construction (including the cost of builder’s risk insurance and all other insurance costs) of
the Developer’s Sewer Improvements, not to exceed the Estimated Costs.
1.47. Sole Source Process. “Sole Source Process” has the meaning given to such term in Section
6.1.
1.48. Standard Specifications. “Standard Specifications” means the Greenbook, the local
standard special provisions referenced in the Approved Drawings and Specifications, and
any amendments thereto that are approved by the City.
1.49. Subcontractor. “Subcontractor” means a party or parties under any subcontract with the
General Contractor to perform the work or provide supplies for the Developer’s Sewer
Improvements.
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1.50. Substantial Completion. “Substantial Completion” means the stage in the progress of the
Project when the Project is sufficiently complete, in accordance with this Agreement, so
that the City can occupy or utilize the Project for its intended use.
1.51. SWPPP. “SWPPP” has the meaning given to such term in Section 8.1.3.
1.52. Working Day(s). “Working Day(s)” means Monday through Friday, excluding Holidays.
ARTICLE II. SUBJECT OF THE AGREEMENT - GENERALLY
The above-listed Recitals are true and correct and are incorporated by this reference. All
attachments to this Agreement as Exhibits are incorporated into this Agreement by this reference.
2.1. Developer’s Sewer Improvements. Except as expressly provided in this Agreement,
Developer shall cause the design and development of the Project Improvements in
accordance with the Schematic Plans (as defined in the DDA) for the development of Phase
1A Infrastructure Improvements (as defined in the DDA) that the District shall submit to
Developer pursuant to Section 4.4(b) of the DDA, and Developer shall cause the Project
Improvements to be constructed so that the Project Improvements are in accordance with
the applicable Contract Documents within the timeframe described in Section 5.1, in each
case, in accordance with all the terms and conditions of this Agreement and for the
Maximum Reimbursement Amount; provided, however, that the Developer shall have no
obligation to develop or construct any of the Project Improvements unless and until DDA
Close of Escrow occurs in accordance with the DDA.
2.2. Complete and Functional Improvements. Developer shall provide complete and functional
Developer’s Sewer Improvements that meet the Contract Documents and all other
applicable standards identified herein.
2.3. Maintain Until Acceptance. Following the completion of the Project Improvements,
Developer shall maintain the Project Improvements until the Acceptance.
2.4. City Payment. City shall reimburse Developer, in an amount not to exceed the Maximum
Reimbursement Amount and subject to the terms and conditions herein, for the Sewer
Income Fund Eligible Expenses of design, development, and construction of Developer’s
Sewer Improvements. City acknowledges and agrees that all of the Estimated Costs
identified in Exhibit A are Sewer Income Fund Eligible Expenses. The City represents and
warrants to Developer that, as of the Execution Date, the aggregate amount of funds on
deposit in the Sewer Income Fund is equal to or greater than the Maximum Reimbursement
Amount and that the City will use its reasonable efforts to manage the Sewer Income Fund
in a manner so that the aggregate amount of funds on deposit in the Sewer Income Fund
during the term of this Agreement is sufficient to pay all Reimbursable Costs in accordance
with this Agreement. To the extent that the amount of funds in the Sewer Income Fund are
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insufficient to pay all Reimbursable Costs, City shall identify alternative funds from which
to pay City’s Sewer Facility Contribution obligation pursuant to the DDA.
ARTICLE III. DURATION OF AGREEMENT
3.1. Term of Agreement. This Agreement shall become effective on the Execution Date, and
the term of this Agreement shall extend until the earlier of (i) such time as all executory
terms have been completed or (ii) earlier termination of this Agreement according to the
termination provisions herein.
ARTICLE IV. PROJECT COSTS
4.1. Estimated Cost. The Estimated Cost is one million dollars ($1,195,000), as shown in
Exhibit A attached hereto.
4.2. Adjustment to Estimated Cost. Estimated Cost is subject to change by the methods
identified below and those established elsewhere in this Agreement.
4.2.1. Revisions to the Estimated Cost. The City Manager or his/her designee shall review
complete sets of the drawings and specifications for the Developer’s Sewer
Improvements promptly after Developer provides them to the City. In the event
that the City Manager or designee reviews the drawings and specifications for the
Developer’s Sewer Improvements and determines that the cost of design,
development, and construction will exceed the then current Estimated Cost, the
Estimated Cost shall be increased to reflect the revised estimate in accordance with
subsection 4.2.2.
4.2.2. Adjustments Based on Other Cost Increases. The Estimated Cost may be increased
due to: (i) acts of God, acts of any governmental authority, the elements, war,
litigation, shortages of material, labor strikes, inflation, later commonly accepted
or adopted higher standards and specifications of construction, concealed or
unknown conditions encountered in the completion of Developer’s Sewer
Improvements, or other cause beyond Developer’s control; (ii) actual bids received
being greater than estimated; (iii) other factors not the result of unreasonable
conduct by Developer; or (iv) the presence of any Hazardous Material on the
Project Site (as defined in the DDA). Subject to t he prior written approval by the
City Manager or his/her designee, which approval shall not be unreasonably
withheld, conditioned, or delayed, the Estimated Cost shall be increased by the
amount of the increase in the cost of the design, development, and construction of
the Developer’s Sewer Improvements that are determined by the City Manager or
his/her designee (in such person’s reasonable, good faith discretion) to be caused
by such events or circumstances.
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4.2.3. Failure to Obtain Approval of Increase. In any case where City Manager’s
approval is required for an increase in the Estimated Cost and such approval is not
obtained, Developer shall have no obligation to incur costs in excess of the
Estimated Cost. City Manager shall not unreasonably withhold, condition or delay
its approval of any deductive change to the Project Improvements such that the
Project Improvements, as revised, can be completed for the Estimated Cost.
4.3. Notification of Increased Costs. If, at any time, Developer definitively establishes that the
amount expended on the Project Improvements will exceed the Estimated Cost, Developer
shall promptly, and in any case not more than ten (10) Working Days after the Developer
definitively establishes the amount of the increase, notify the City thereo f in writing. This
written notification shall include an itemized cost estimate and a list of recommended
revisions (e.g., deductive changes) which Developer believes will bring the cost to within
the Estimated Costs. The City may either: (i) approve an increase in Estimated Cost (which
approval shall not be unreasonably withheld, conditioned, or delayed) or (ii) reasonably
delineate a project which may be constructed for the Estimated Cost; provided that such
delineation does not have a material and adverse effect on the design, development, or
construction of the Developer’s Private Improvements (as defined in the DDA) or the
Convention Center (as defined in the DDA); or (iii) any combination of (i) and (ii).
ARTICLE V. PROJECT SCHEDULE
5.1. Project Schedule. Developer shall complete the Project Improvements by sixty (60)
months and ten (10) days after the commencement date of the Ground Lease (such
deadline to be extended by one day for each day the applicable deadline is extended
pursuant to and in accordance with the Ground Lease, including pursuant to any
amendment to the Ground Lease). No delay in the completion of the Project
Improvements shall excuse any failure by Developer to timely complete the Resort Hotel
and the Convention Center (as each such term is defined in the Ground Lease) in
accordance with the Ground Lease, except as set forth in the Ground Lease.
5.2. Unavoidable Delay. Each Party shall be entitled to an extension of the date of the
performance of any obligation required of such Party under this Agreement in the same
manner and to the same extent as provided in the Ground Lease.
ARTICLE VI. COMPETITIVE BIDDING AND EQUAL OPPORTUNITY
6.1. Compliance. Developer shall bid and award contracts and subcontracts to complete Project
in accordance with all applicable public contract laws, rules, and regulations, including but
not limited to those set forth in the City of Chula Vista Charter and Municipal Code,
including CVMC §2.56.160(H) (Developer-Performed Public Works). Notwithstanding
anything to the contrary herein, the Parties agree that the Developer may (a) subject to
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CVMC §2.56.160(H)(1)(b) (Developer-Performed Public Works), award the prime
contract for the Project to the General Contractor on a sole source basis pursuant to and in
accordance with CVMC §2.56.160(H)(1)(b) (“Sole Source Process”) or, (b) subject to
CVMC §2.56.160(H) (Developer-Performed Public Works), award the prime contract for
the Project to the General Contractor by competitive bid or solicitation in accordance with
CVMC §2.56.160(H)(2)(d) (Developer-Performed Public Works) (“Competitive Bid or
Solicitation Process”). The Parties further agree that, in the case of the Sole Source
Process, the General Contractor for the Project shall award subcontracts for the P roject to
Subcontractors by competitive bid or solicitation in accordance with CVMC
2.56.160(H)(2)(d) (Developer-Performed Public Works) (“Competitive Bid or
Solicitation Process”).
6.1.1. Proof of Advertising. In the case of any Competitive Bid or Solicitation Process,
Developer shall provide the City with proof that the Developer or the General
Contractor, as applicable, solicited competitive bids from the General Contractor
and/or Subcontractors, as applicable, in accordance with CVMC
2.56.160(H)(2)(c) (Developer-Performed Public Works).
6.1.2. Prevailing Wage. Developer shall advertise the Project as requiring the payment
of prevailing wage and include all provisions in the advertisement and Contract
Documents as required by the California Department of Industrial Relations.
6.2. Bid Opening and Award. In the case of any Competitive Bid or Solicitation Process,
Developer shall provide City with a copy of the tabulation of competitive bid results with
respect to each contract and subcontract, as applicable. In the event that the best qualified
General Contractor’s bid or Subcontractor’s bid, as applicable, combined with a reasonable
amount for contingencies, exceeds the Estimated Cost, the increase in the costs may be
approved by the City Manager pursuant to Section 4.2.2 prior to awarding the prime
contract or the subcontract, as applicable. In the event the City Manager does not approve
the increased cost, this Agreement, at the City’s option but subject to the next sentence,
may be terminated upon prior written notice thereof to Developer of not less than twenty
20) days and the Project may be rebid and/or redesigned. If the City notifies Developer
that it intends to exercise the termination option, then Developer shall have the right to pay
the amount in excess of the Estimated Cost (“Excess Cost”), in which case the City shall
no longer have the right to terminate this Agreement. Developer acknowledges and agrees
that payment of any Excess Cost shall not be a Reimbursable Cost under this Agreement.
In the event that the Agreement is terminated pursuant to this Section 6.2, the Developer’s
design, development, and/or construction costs will be reimbursed to Developer from the
Sewer Income Fund for the actual Reimbursable Costs expended by Developer prior to
termination of this Agreement. Developer shall provide City with copies of all executed
contracts awarded in accordance with this Section 6.2.
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6.3. Equal Employment Opportunities and Equal Opportunity Contracting.
6.3.1. Equal Employment Opportunity Nondiscrimination. Developer shall not
discriminate against any employee or applicant for employment on any basis
prohibited by law. Developer shall provide equal opportunity in all employment
practices. Developer shall instruct its consultants, subconsultants, General
Contractor, and Subcontractors, to comply with this provision. Nothing in this
subsection 6.3.1 shall be interpreted to hold Developer liable for any discriminatory
practice of its General Contractor, Subcontractors or any other party.
6.3.2. Equal Employment Opportunity Certification. Developer shall require all bidders
to submit signed equal employment opportunity certifications, on forms approved
by the City, with their bid packages.
6.3.3. Equal Opportunity Contracting Nondiscrimination. Developer shall not
discriminate on the basis of race, gender, religion, national origin, ethnicity, sexual
orientation, age, or disability in the solicitation, selection, hiring, or treatment of
bidders, the General Contractor, Subcontractors, vendors, or suppliers. Developer
shall provide equal opportunity for bidders, contractors, the General Contractor,
and Subcontractors to participate in contracting and subcontracting opportunities.
Developer understands and agrees that violation of this subsection 6.3.3 shall be
considered a material breach of this Agreement and may result in termination of
this Agreement, debarment, or other sanctions. The language in this subsection
6.3.3 shall be inserted in contracts between Developer, the General Contractor, any
Subcontractors, vendors, and suppliers awarded in accordance with Section 6.2.
ARTICLE VII. DESIGN AND CONSTRUCTION STANDARDS
7.1. Standard of Care. Developer agrees that it will require that the services provided as part
of this Agreement be performed in accordance with the standards customarily adhered to
by experienced and competent professional architectural, engineering, landscape
architecture, and construction firms (as applicable) using the degree of care and skill
ordinarily exercised by reputable professionals practicing in the same field of service in the
State of California.
7.1.1. Compliance with all Laws. Developer shall comply, and require compliance by
any of its General Contractor, Subcontractors, employees, and agents, with all laws,
including but not limited to all local, City, San Diego County, State of California,
and federal laws, codes and regulations, ordinances and written publicly available
policies, including, but not limited to, Development Services Department permits,
hazardous material permits, site safety, state and local building codes, stormwater
regulations, etc.
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7.2. Compliance with Design and Construction Standards. Developer shall comply, and require
compliance by any of its General Contractor, Subcontractors, employees, and agents, with
the Design and Construction Standards.
7.2.1. Standard Specifications. Developer shall comply, and require compliance by any
of its General Contractor, Subcontractors, employees, and agents, with the editions
of the following reference specifications that are in effect as of the date of the
approval of the Approved Drawings and Specifications for purposes of the bids
when designing, developing, and constructing the Project: the Greenbook and the
regional and any local supplement amendments and the Chula Vista Standard
Special Provisions.
7.2.2. City Standards. Developer’s professional services shall be provided in
conformance with the professional standards of practice established by City. This
includes amendments and revisions of these standards as adopted by City. The
professional standards of practice established by City include the Standard
Specifications and the Approved Drawings and Specifications.
7.2.3. City Engineer Inspection. Inspections and approvals by the City Engineer in
accordance with the Standard Specifications shall not be unreasonably conditioned,
withheld or delayed.
7.3. Changes to Standards. Developer shall not be required to comply, nor to cause any of its
General Contractor, Subcontractors, employees, and agents to comply, with any design
standard or any construction standard or any amendment, update, supplement or other
modification to the Design and Construction Standards after the date of the approval of
the Approved Drawings and Specifications for purposes of the bids.
7.4. City Approval Not a Waiver of Obligations. Where approval by the City, the City
Manager, or other representatives of City is required, it is understood to be general approval
only and does not relieve Developer of responsibility for complying with all applicable
laws, codes, and good consulting, design, or construction practices and is not an assumption
of liability by the City, except in the case of City’s express waiver of the requirement to
comply with (a) any City requirement, to the extent such requirement is waivable, or (b)
any good consulting, design, or construction practice. Nor shall City, through approval,
become an insurer or surety of work associated with the approvals.
ARTICLE VIII. CONSTRUCTION
8.1. Site Safety, Security, and Compliance. Developer shall be responsible for Project Site
safety, security, and compliance with all related laws and regulations.
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8.1.1. Persons. As between the Developer and the City, and without expanding the
Developer’s contractual obligations or duties to any person other than the City, the
Developer shall be fully responsible for the safety and security of its officers,
agents, and employees authorized by Developer to access the Project Site.
8.1.2. Other. Developer is responsible for Project Site, materials, equipment, and all other
incidentals on the Project Site until the completed Project has been accepted by the
City pursuant to Article X.
8.1.3. Environment. Developer shall comply with all environmental laws and regulations,
including the Clean Air Act of 1970, the Clean Water Act, Executive Order number
11738, and the Stormwater Management and Discharge Control Ordinance No. 0-
17988 and any and all Best Management Practice (“BMP”) guidelines and pollution
elimination requirements as may be established by an enforcement official.
Furthermore, Developer shall prepare and incorporate into the drawings and
specifications a Stormwater Pollution Prevention Plan (“SWPPP”) to be
implemented by Developer during Project construction and, until Acceptance,
maintenance. Where applicable, the SWPPP shall comply with both the California
Regional Water Quality Control Board Statewide General Construction Storm
Water permit and National Pollution Discharge Elimination System permit
requirements and shall be in conformance with the City of Chula Vista BMP Design
Manual and CVMC Chapter 14.20 (Storm Water Management and Discharge
Control).
8.1.4. Access to Project Site. City officers, agents, and employees that have Project-
related business shall have the right to enter the Project Site at any time for Project
related purposes; provided that such person complies with all written applicable
security and safety procedures provided by Developer to City, written instructions
given by Developer to City and oral instructions given by Developer or the General
Contractor to such person on the Project Site, and uses commercially reasonable
efforts to minimize any interference with Developer’s operation and use of the
Project Site while on the Project Site.
8.2. Public Right-of-Way. All work, including materials testing, special testing, and surveying
to be conducted in the public right-of-way shall be coordinated with the City.
8.2.1. Follow all Laws, Rules, and Regulations. Developer agrees to follow all Federal
and State laws and regulations, and all written and publicly available City standards
and regulations while working in the public right-of-way, including, but not limited
to, utilizing proper traffic control and obtaining necessary permits.
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8.3. Traffic Control. Developer shall comply with all written traffic control requirements for
Project, including, if applicable, all traffic control plans and/or notes.
8.4. Maintenance. Developer shall maintain and be responsible for the Project and the Project
Site until Acceptance, including ongoing erosion prevention measures. Upon Acceptance,
City shall be responsible for maintenance of the Project.
ARTICLE IX. REIMBURSEMENT/PAYMENT OF COSTS AND EXPENSES
9.1. Payment of Costs Associated with Project
9.1.1. Maximum Reimbursement Amount. The maximum amount of reimbursement for
Project shall not exceed the Maximum Reimbursement Amount. Neither
Developer nor the General Contractor nor any Subcontractor, nor any combination
thereof, shall be entitled to payment in excess of the Maximum Reimbursement
Amount.
9.1.2. Funds for Payment of Costs/Expenses. The source of funds for the payment of
costs/expenses associated with Project shall be limited to that listed below. No
other City funds, or monies held by, owed to, or in trust for, the City, shall be used
by the City or sought to be collected by Developer, its employees, age nts, the
General Contractor, or Subcontractors other than those identified in Section 9.1.2.1.
9.1.2.1. Funds for Project. Funds for payment of costs/expenses for Project shall
be limited to the City’s Sewer Facility Contribution.
9.1.3. Prerequisites to Payment.
9.1.3.1. Reimbursement Request. Prior to reimbursement of any costs or expenses
for the Project, Developer shall provide the City with a Reimbursement
Request containing the following:
a. Invoices. Developer shall provide the Director of Development
Services all invoices for Reimbursable Costs associated with
Project, not previously paid by the City, within 30 days after receipt
thereof.
b. Proof of Payment. Developer shall provide the Director of
Development Services with proof of payment of all invoices for
Reimbursable Costs submitted within 30 days after such payment.
c. Lien Releases/Stop Payment Notices. Developer shall provide the
Director of Development Services with statutory lien/stop payment
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notice releases associated with all work performed or supplies
provided in a form satisfactory to the City Attorney.
d. Certification of Payment. Developer shall provide the Director of
Development Services with a written certification that all trade and
soft costs for which Developer is seeking reimbursement have been
paid.
e. Certification of Prevailing Wage Compliance. Developer shall
provide the Director of Development Services with a written
certification of compliance with all applicable Prevailing Wage laws
and regulations.
f. Acknowledgement of General Contractor and Subcontractors.
Developer shall provide the Director of Development Services with
a letter from each firm (e.g. civil, survey, and geotechnical)
acknowledging that eligible soft costs included in the relevant
invoices have been paid.
g. Time sheets. Developer shall provide the Director of Development
Services with time sheets from Developer’s construction manager
to justify the Project management costs.
h. Graphics. Developer shall provide the Director of Development
Services with a graphic depicting the areas within the Project for
which the Reimbursement Request is being submitted.
i. Other Documents. Developer shall provide the Director of
Development Services with any other documents that reasonably
may be needed to evaluate the eligibility of the cost/expense as
Reimbursable Costs as determined necessary by the Director of
Development Services in his/her sole discretion.
City shall not have an obligation to make payment to Developer unless
and until Developer provides the Director of Development Services with
a Reimbursement Request containing all of the applicable items listed
above and such Reimbursement Request is approved by the Director of
Development Services as provided below.
9.1.3.2. Inspection. The Project shall be subject to City inspection as provided in
section 2-11 of the Greenbook. Developer shall ensure that all persons
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and entities providing work or services for the Project comply with the
inspection requirements provided in section 2-11 of the Greenbook.
9.1.3.3. Prevailing Wage Compliance. Developer shall ensure that all persons and
entities providing work or services for the Project comply with Prevailing
Wage requirements, as established by the California Department of
Industrial Relations, as applicable, in accordance with applicable law.
9.1.3.4. City Approval. The Director of Development Services shall review each
Reimbursement Request and the supporting documentation. If the
Director of Development Services finds that any such Reimbursement
Request is incomplete, improper, or otherwise not suitable for
reimbursement, then the Director of Development Services shall so
inform Developer in writing within fifteen (15) Working Days after
receipt thereof, of the reasons for his/her finding. If the Director of
Development does not find that any such Reimbursement Request is
incomplete, improper, or otherwise not suitable for reimbursement, then
the Director of Development Services shall so inform Developer in
writing within fifteen (15) Working Days after receipt thereof and within
that time period approve the Reimbursement Request. Developer shall
have the right to respond to such finding by submitting further
documentation requested in such finding after receipt of said finding. The
Director of Development Services shall review any further documentation
received from Developer in support of the Reimbursement Request and
inform Developer of his/her approval or denial of the Reimbursement
Request within ten (10) Working Days after receipt of such further
documentation. If the Director of Development Services determines that
the Reimbursement Request is incomplete, but that sufficient and
complete information exists with respect to a portion of the
Reimbursement Request, then the Director of Development Services may
but is not obligated to approve the Reimbursement Request with respect
to such portion of the Reimbursement Request. The City shall cause the
Director of Development Services to carry out its duties under this Section
9.1.3.3 in a reasonable and good faith manner.
9.1.4. Time of Payment. After Developer has obtained City’s approval pursuant to 9.1.3,
City shall reimburse Developer for the approved costs/expenses associated with
each Reimbursement Request by the Payment Date. If the Payment Date falls on a
weekend or holiday, the Payment Date shall be extended to the next Working Day.
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9.1.4.1. Additional Costs. Any costs that may accrue, such as interest on late
payments to Developer’s General Contractors, Subcontractors, or
suppliers as a result of the Developer’s failure to provide a complete
Reimbursement Request, shall not be the obligation of the City if the City
has not received a complete Reimbursement Request. Such additional
costs shall be the obligation of the Developer and not eligible for
reimbursement.
9.1.5. Reimbursement Amount per Reimbursement Request. The City shall pay Developer
approved amounts in the Reimbursement Request, less any Non-Reimbursable
Costs and Contested Charges (as defined below) on or before the Payment Date. If
the Payment Date falls on a weekend or holiday, the Payment Date shall be
extended to the next Working Day. Additional costs that result from the City’s
failure to make payments when required by this Agreement will be the obligation
of the City.
9.1.5.1. Withholding. The prime contract and subcontracts for the Project may
provide for withholding from each payment to the General Contractor or
the Subcontractor, as applicable, until Acceptance. Except as otherwise
provided in this Agreement or at law, the City shall not withhold any
additional amounts from the Reimbursement Requests submitted by
Developer, beyond the actual General Contractor or Subcontractor
withholding amount.
a. Payment and Invoicing for Withholding. Developer shall not pay
the General Contractor and the Subcontractors the amounts withheld
until (1) forty-five (45) calendar days from recordation of the Notice
of Completion and (2) confirmation has been submitted to the
Director of Development Services by Developer that no stop
payment notices or mechanic’s liens have been filed and not
released with respect to the Project and the following work has been
completed:
i. All Project improvements have been installed.
ii. As-builts have been submitted to the City.
iii. Form PWE106 is completed.
iv. The final punch list is complete.
Where a stop payment notice or mechanic’s lien has been filed following
the recordation of the Notice of Completion, Developer shall continue to
withhold the amount in controversy until a fully executed release of stop
payment notice or mechanic’s lien or a bond releasing the stop payment
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notice or mechanic’s lien has been filed and a conformed copy delivered
to the City. Notwithstanding anything in this Agreement to the contrary,
Developer shall not be required to withhold any funds from the General
Contractor or any Subcontractor to the extent doing so would violate any
applicable law.
9.1.5.2. Non-Reimbursable Costs. The following costs/expenses shall not be
eligible for reimbursement under this Agreement.
a. Costs Incurred Due to Negligence. Developer shall not be entitled
to payment for any incremental cost or expense incurred due to
negligent acts, negligent omissions, or willful misconduct of
Developer, the General Contractor, or Subcontractors, or any of
their respective subcontractors, material suppliers, equipment
providers, employees, or agents.
b. Unapproved Costs. Developer shall not be entitled to
reimbursement for any cost or expense that has not been approved
by the City pursuant to Section 9.1.3.3.
c. Excess Costs. Developer acknowledges and agrees that any Excess
Cost (as defined in section 6.2 of this Agreement) shall not be a
Reimbursable Cost.
d. Non-Project Shared Costs. The parties acknowledge that Developer
may share certain costs (e.g. mobilization, traffic control) for the
Project with other projects contemplated under the DDA. Developer
acknowledges and agrees that any shared project costs that are not
directly attributable to or reasonably apportioned to the Project, as
reasonably determined by the City, shall not be a Reimbursable
Cost.
e. Defective Work Costs. Developer acknowledges and agrees that
defective work costs as provided in Section 12.3 of this Agreement
shall not be a Reimbursable Cost.
9.1.5.3. Contested Charges. In the event that the City contests any costs/expenses
on an invoice received (“Contested Charge”), the City shall provide
Developer a written statement of the Contested Charges, the reason why
the costs/expenses are contested, and a proposed resolution.
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a. Appeal to City Manager. Developer may appeal the City’s
determination of any Contested Charges. The appeal must be
received within 30 days after the City notifies the Developer of such
Contested Charge. During the appeal period, and as long as any
Contested Charge remains disputed, Developer shall proceed with
the Project, and the City shall compensate Developer for the
undisputed amounts. If, following the appeal, the City Manager
determines that any Contested Charges are eligible for
reimbursement, such amounts shall be included in the next payment
to Developer.
9.1.6. Cutoff for Submission of Invoices. Developer shall submit its final Reimbursement
Request not later than the Cutoff Date. Any Reimbursement Requests submitted
after the Cutoff Date shall not be reviewed or included in Reimbursable Cost. The
final payment by the City for the Project will be made only after Developer has
submitted all documentation reasonably necessary to substantiate the cost of
construction and completing the Improvements associated with that phase,
mechanic’s lien free, stop payment notice free, in accordance with the Contract
Documents. Final inspection and sign-off by the City’s inspectors with associated
mechanic’s lien and stop payment notice releases (or bonds releasing contested
mechanic’s liens or stop payment notices) shall be sufficient evidence of the
mechanic’s lien or stop payment notice free completion of the Improvements.
9.1.7. Final Accounting. Following completion of the Project, Developer shall submit a
final accounting (“Final Accounting”) to the City in order to determine the cost of
design, development, construction, and related work thereto to complete the
Improvements. Developer shall also submit all supporting information reasonably
necessary to document costs/expenses for the Improvements, including specific
details on the costs and work attributable to the Improvements, including, as
applicable, third-party invoices, billings, and receipts for construction surveying,
soil testing, blue printing, actual construction costs, and similar expenses.
9.1.7.1. True-up Payments. Within 30 Working Days following a Final
Accounting, the City shall determine whether the actual payments made
to Developer equal the audited approved costs and expenses. In the event
that the amount of the approved costs and expenses exceeds the amount
of the actual payments, the City shall make a true-up payment to
Developer for the difference; however, in no event, shall the true-up
payment cause the total amount paid to exceed the Maximum
Reimbursement Amount. If the Final Accounting shows that the amount
of actual payments to Developer exceeds the amount of the approved costs
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and expenses, Developer shall remit or cause the remittance of the
difference to the City within twenty (20) Working Days of a notice of
deficiency.
ARTICLE X. PROJECT ACCEPTANCE AND FINAL COMPLETION
10.1. No Waiver. Developer shall cause the work to be performed and completed in accordance
with the Contract Documents, as reasonably determined by the City Engineer and the
Director of Development Services. Neither recommendation of any progress payment or
acceptance of work, nor any payment by City to Developer under this Agreement, nor any
use or occupancy of the Improvements or any part thereof by the City, nor any act of
acceptance by the City, nor any failure to act, nor any review of a shop drawing or sample
submittal, will constitute an acceptance of work, which is not substantially in accordance
with the Contract Documents.
ARTICLE XI. WARRANTIES
11.1. Enforcement of Warranties. Developer shall enforce for the City's benefit all warranties
provided in the Contract Documents and any other implicit or explicit warranties or
guarantees required or implied by law.
11.1.1. Materials and Workmanship. Developer shall require the General Contractor and
Subcontractor(s) to guarantee all work on the Project against Defective Work for a
period of one (1) year from the date of Acceptance.
11.1.2. New Materials and Equipment. Developer shall require the General Contractor and
Subcontractor(s) to warrant and guarantee to City that all materials and equipment
incorporated into the Project are new unless otherwise specified.
11.1.3. Design, Construction, and Other Defects. Developer shall require the General
Contractor and Subcontractor(s) to warrant and guarantee to City that all work is in
accordance with the Contract Documents and is not Defective Work in any way in
design, construction, or otherwise.
11.2. Term of Warranties. Unless otherwise specified or provided by law, warranties shall
extend for a term of one (1) year from the date of Acceptance.
ARTICLE XII. DEFECTIVE WORK
12.1. Correction, Removal, or Replacement. The Developer shall require that if, within the
designated warranty period, or such additional period as may be required by law or
regulation, the City determines the Project contains Defective Work, the General
Contractor or applicable Subcontractor, as applicable, shall promptly and in accordance
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with the City’s written instructions and within the reasonable time limits stated therein,
either correct, repair, or both remove and replace the Defective Work.
12.2. City’s Right to Correct. If circumstances warrant, including but not limited to an
emergency or the Developer’s failure, the General Contractor’s failure, or such
Subcontractor’s failure, as applicable, to adhere to Section 12.1, City may correct, remove,
or replace the Defective Work. In such circumstances, the Developer, the General
Contractor, and such Subcontractor(s), as applicable, shall not recover costs associated
with the Defective Work.
12.3. Non-Reimbursable Costs. Any costs incurred by Developer, the General Contractor,
Subcontractors or its agents to remedy defects are Non-Reimbursable Costs, unless the
Contract Documents require the Developer to reimburse for such costs. Notwithstanding
the foregoing, for the avoidance of doubt, the parties acknowledge and agree that the
following shall constitute Non-Reimbursable Costs: (i) costs to remedy defects due to the
negligence of the General Contractor, Subcontractors, or their agents; (ii) costs to remedy
defects due to the failure of General Contractor, Subcontractors, or their agents to comply
with the Contract Documents to the extent such costs exceed the guaranteed maximum
price contained in the Contract Documents, or (iii) costs to remedy defects where such
costs have been recovered from an alternate source (e.g. insurance or bond). If the City
has already reimbursed Developer, the General Contractor, Subcontractors or its agents, as
applicable, for the Defective Work, City is entitled to an appropriate decrease in
Reimbursable Costs, to withhold a setoff against the amount, or to make a claim against
Developer’s bond, if Developer, the General Contractor, Subcontractors or agents, as
applicable, have been paid in full, until the Defective Work is remedied unless the Contract
Documents require the Developer to reimburse for such costs.
12.4. Extension of Warranty. When Defective Work, or damage therefrom, has been corrected,
repaired, replaced or removed, as applicable, during the warranty period, the one (1) year
or another relevant warranty period, as applicable, will be extended for an additional time
period equal to that of the initial warranty period, from the date of the satisfactory
completion of the correction, repair, replacement or removal, as applicable, but, in no
event, beyond one (1) year from the date of the expiration of the initial warranty period.
12.5. No Limitation on Other Remedies. Exercise of the remedies for Defective Work pursuant
to this Article XII shall not limit the remedies City may pursue under this Agreement or at
law.
12.6. Disputes. If Developer and City are unable to reach agreement on disputed work, City may
direct Developer to proceed with the work and compensate Developer for undisputed
amounts. Payment of disputed amounts shall be as later determined in accordance with
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9.1.5.3. Developer shall maintain and keep all records relating to disputed work for a
period of three (3) years in accordance with Article XIV.
ARTICLE XIII. SECURITY FOR CONSTRUCTION
13.1. Bond. The Contract Documents shall require the General Contractor or Subcontractors to
provide a payment bond and a performance bond, on forms acceptable to the City, for the
construction of the Project in an amount of no less than the Estimated Cost. Developer
shall cause the City to be named as a co -obligee of the payment bond and performance
bond. Developer shall deliver copies of the payment bond and performance bond to City
prior to commencement of construction for the Project. Developer shall ensure the
payment bond and performance bond are maintained until such time as the Project is
complete and Accepted by the City.
13.2. Insolvency or Bankruptcy. If the surety on any of the above-mentioned bonds is declared
bankrupt or becomes insolvent or its right to do business is terminated in any state where
any part of the Project is located, Developer shall within five (5) Working Days after the
City notifies the Developer thereof substitute or require the substitution of another bond
and surety, reasonably acceptable to the City.
13.3. Calling the Bond. Developer acknowledges and agrees that if Developer’s construction of
the Improvements has not been completed in accordance with Section 5.1, has not been
performed in accordance with the Contract Documents, or if the Developer has failed to
cure any Defective Work within the commercially reasonable time specified in a written
notice of defect, the City may use the security referenced in Section 13.1 above to complete
the Improvements. This remedy is not a limitation on remedies of the City and is in
addition to any other remedy that the City may have at law or in equity.
ARTICLE XIV. INDEMNITY AND DUTY TO DEFEND
14.1. Defense, Indemnity, and Hold Harmless.
14.1.1. General Requirement. (a) Developer shall defend, indemnify, protect, and hold
harmless (collectively, “Indemnify”) the City, its elected and appointed officers,
agents and employees (collectively, the “Indemnified Parties”), from and against any
and all claims, demands, causes of action, costs, expenses, liabilities, loss, damages,
and injuries (collectively, “Loss”), in law or equity, to property, including takings
claims, or persons, including wrongful death, to the extent and proportion directly or
indirectly caused by any negligent acts or negligent omissions, or negligence or
willful misconduct of Developer, its officials, officers, the General Contractor,
Subcontractor(s), agents, or employees arising out of or in connection with the
performance of the Project or this Agreement; provided, however, from and after the
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tenth (10th) anniversary of the date of Acceptance, Developer shall have no obligation
to Indemnify the Indemnified Parties for any Loss that arises out of any design or
other defect in connection with the Project.
b) This indemnity provision does not include any claims, damages, liability, costs
and expenses (including without limitations, attorneys’ fees) arising from the sole
negligence, active negligence or willful misconduct of the City, its officials,
officers, agents or employees.
c) Also covered by this provision is liability arising from, connected with, caused
by, or claimed to be caused by the active or passive negligent acts or negligent
omissions of the City, its agents, officers, officials or employees which may be in
combination with, and to the extent and proportion caused by, the active or passive
negligent acts or negligent omissions of Developer or its officials, officers, the
General Contractor, Subcontractor(s), agents, or employees.
14.1.1.1. Damage to Downstream or Adjacent Properties. Such indemnification
and agreement to hold harmless shall extend to damages to adjacent or
downstream properties or the taking of property from owners of such
adjacent or downstream properties as a result of and to the extent of and
proportion caused by the negligence by Developer, its officials, officers,
the General Contractor, Subcontractor(s), agents, or employees in the
construction of the Improvements in accordance with the Contract
Documents as provided herein. It shall also extend to damages resulting
from diversion of waters, change in the volume of flow, modification of
the velocity of the water, erosion or siltation, or the modification of the
point of discharge as the result of and to the extent of and proportion
caused by the negligence by Developer, its officials, officers, the General
Contractor, Subcontractor(s), agents, or employees in the construction of
the Improvements in accordance with the Contract Documents.
14.1.2. Hazardous Materials. (a) Developer agrees to defend, indemnify, and hold
harmless, the City, its agents, officers and employees from and against any and all
costs, damages, claims, and liabilities, including reasonable attorney fees,
foreseeable or unforeseeable, directly or indirectly, arising from or related to the
release of Hazardous Materials by Developer, its officials, officers, the General
Contractor, Subcontractor(s), contractors, agents, or employees in association with
the construction, maintenance, or repair of the Project, or any act taken or omission
under the Agreement.
b) Notwithstanding the foregoing, Developer shall have no obligation to
Indemnify any Indemnified Party for any Loss related to any Pre-Existing
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Hazardous Material except to the extent Developer, any of its officials, officers, the
General Contractor, Subcontractor(s), contractors, agents, or employees, or any
combination thereof, is negligent in releasing, allowing a release, or causing a
release of such Pre-Existing Hazardous Material. Developer expressly preserves
its rights against other parties and does not release or waive its rights to contribution
against any other party.
14.1.3. Illegal Discharge to Storm Drains. Developer shall defend, indemnify, protect, and
hold harmless City, its agents, officers, and employees, from and against all claims
asserted, or liability established for damages or injuries to any person or property
resulting from a discharge to public storm drains in violation of applicable laws to
the extent arising out of the construction of the Improvements (an “Illegal
Discharge”) caused by any action or failure of Developer, its officials, officers, the
General Contractor, Subcontractor(s), agents, or employees to take reasonable
measures to prevent an Illegal Discharge or any Illegal Discharge by any such
persons or entities. Developer shall also be responsible for payment of any fines or
penalties assessed against City for an Illegal Discharge. Developer’s duty to
indemnify and hold harmless shall not include any claims or liability arising from
the established sole negligence or willful misconduct of City, its officials, officers,
agents or employees.
14.1.4. Costs of Defense and Award. Developer shall immediately accept all tenders and
defend, at Developer’s own cost, expense and risk, any and all claims, demands,
suits, actions, or other legal or administrative proceedings that may be brought or
instituted against the City, its officials, officers, employees and/or agents and that
appear to be covered by the defense obligation defined in Section 14.1.1(a),
14.1.1(c), 14.1.1.1, 14.1.2(a), or 14.1.3. Developer acknowledges and agrees that
its obligation to accept tender and defend the City, its officials, officers, employees,
and/or agents as provided in this Section 14.1.4 is absolute and not subject to any
limitations in Sections 14.1.1(b) and 14.1.2(b) of this Agreement, or elsewhere.
Developer shall pay and satisfy any judgement, award, or decree that may be
rendered against City or its officials, officers, employees and/or agents, for any and
all related legal expense and costs incurred by each of them to the extent of
Developer’s actual determined negligence, subject to the limitations in Sections
14.1.1 and 14.1.2 and only to the extent Section 14.1.1 or 14.1.2 requires Developer
to do so. The City may, in its reasonable discretion, participate in the defense of
any and all suits, actions, or other legal proceedings that may be brought or
instituted against the City, its officials, officers, employees and/or agents, and the
Developer shall have the obligation to reimburse the City for any costs of defense
incurred by the City, including, without limitation, reimbursement for attorneys’
fees, experts’ fees and other costs. Prior to incurring any defense costs, City agrees
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RIDA CHULA VISTA, LLC
to notify Developer and offer to meet-and-confer with Developer to discuss
practicable measures to manage total defense costs. The City’s participation shall
not relieve the Developer of any of its obligations under this Article XIV.
14.1.5. Insurance Proceeds. Developer’s obligation to indemnify shall not be restricted to
insurance proceeds, if any, received by the City, its officials, officers, employees
and/or agents.
14.1.6. No Use of Security. The security identified in Article XIII shall not be used to
satisfy the obligations of Developer under this Article XIV.
14.1.7. Declarations. Developer’s obligations under Article XIV shall not be limited by
any prior or subsequent declaration by Developer.
14.1.8. Enforcement of Costs. Developer agrees to pay any and all costs, including
attorneys’ fees, that the City incurs enforcing the indemnity and defense provisions
set forth in Article XIV.
14.1.9. Survival. Developer’s obligations under Article XIV shall survive the expiration
and/or termination of this Agreement.
ARTICLE XV. INSURANCE REQUIREMENTS
15.1. Insurance Requirements. Developer shall, and shall require its architects, engineers,
contractors, subcontractors, and other persons and entities providing services for or
performing work on the Project to purchase and maintain insurance in the same manner
and to the same extent as required by Section 4.10 of the DDA. The parties agree to meet-
and-confer to try to identify insurance coverage to cover losses to Project supplies,
materials, and equipment prior to Acceptance.
ARTICLE XVI. RECORDS AND AUDITS
16.1. Retention of Records. Developer shall maintain data and records related to this Agreement
for a period of not less than three (3) years following receipt of final payment under this
Agreement.
16.2. Audit of Records. At any time during normal business hours and as often as the City deems
necessary, Developer, the General Contractor and any or all of Subcontractors shall make
available to the City for examination at reasonable locations within the City/County of San
Diego all of the data and records with respect to all matters covered by this Agreement.
Developer, the General Contractor and Subcontractors will permit the City to make audits
of all invoices, materials, payrolls, records of personnel, and other data and media relating
to all matters covered by this Agreement. If records are not made available within the
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City/County of San Diego, then Developer shall pay all the City's travel related costs to
audit the records associated with this Agreement at the location where the records are
maintained. Such costs will not be Reimbursable Costs.
16.1.1. Costs. Developer and Developer’s agents shall allow City to audit and examine
books, records, documents, and any and all evidence and accounting procedures
and practices that City reasonably determines are necessary to discover and verify
all costs of whatever nature, which are claimed to have been incurred, anticipated
to be incurred, or for which a claim for additional compensation or for extra work
have been submitted under this Agreement.
ARTICLE XVII. MISCELLANEOUS PROVISIONS
17.1. Notices. All notices and demands given pursuant to this Agreement shall be written. They
shall be deemed served (i) immediately, upon personal delivery; (ii) the next Working Day,
if sent prepaid by recognized overnight service such as FedEx for delivery the next
Working Day; or (iii) three (3) Working Days after deposit in the United States mail,
certified or registered mail, return receipt requested, first-class postage prepaid. Until
notice of a change of address is properly given, notice shall be given:
If to City: City of Chula Vista
Attn: City Manager
276 Fourth Avenue
Chula Vista, California 91910
With a copy to: Office of the City Attorney
Attn: City Attorney
276 Fourth Avenue
Chula Vista, California 91910
If to Developer: RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Legal Department
With a copy to: Latham & Watkins
12670 High Bluff Drive
San Diego, CA 92130
Attention: Steven Levine
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17.2. Captions. Captions in this Agreement are inserted for convenience of reference. They do
not define, describe or limit any term of this Agreement.
17.3. Entire Agreement. This Agreement embodies the entire agreement and understanding
between the Parties regarding the subject matter hereof. No prior or contemporaneous oral
or written representations, agreements, understandings and/or statements regarding its
subject matter shall have any force or effect. This Agreement is not intended to supersede
or amend any other agreement between the Parties unless expressly noted. However, all
previous written agreements, remain in full force and effect except to the extent they
conflict with this Agreement.
17.4. Severability. If any provision of this Agreement or its particular application is held invalid
or unenforceable, the remaining provisions of this Agreement, and their application, shall
remain in full force and effect, unless a Party's consideration materially fails as a result.
17.5. Recordation. The City may record this Agreement in the Office of the County Recorder of
San Diego County, California.
17.6. Preparation of Agreement. No inference, assumption or presumption shall be drawn from
the fact that a Party or its attorney drafted this Agreement. It shall be conclusively
presumed that all Parties participated equally in drafting this Agreement.
17.7. Authority. Each Party warrants and represents that it has legal authority and capacity to
enter into this Agreement, and that it has taken all necessary action to authorize its entry
into this Agreement.
17.8. Modification. This Agreement may not be modified, terminated or rescinded, in whole or
in part, except by written instrument duly executed and acknowledged by the Parties hereto,
their successors or assigns.
17.9. Governing Law and 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 shall be the City of San Diego.
17.10. Administrative Claims. No suit or arbitration shall be brought arising out of this
Agreement against the City unless a claim has first been presented in writing and filed with
the City and acted upon by the City in accordance with the procedures set forth in Chapter
1.34 of the CVMC, as same may from time to time be amended (the provisions of which
are incorporated by this reference as if fully set forth herein), and such policies and
procedures used by City in the implementation of same.
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17.11. Non-liability of City Officials and Employees. No member, official, employee or
consultant of the City shall be personally liable to Developer in the event of any default or
breach by City, or for any amount which may become due to Developer, or on any
obligations under the terms of this Agreement.
17.12. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be the original and all of which shall constitute one and the same document.
17.13. Electronic Signatures. The words “execution”, “execute”, “signed”, “signature”, and
words of like import in or related to any document signed or to be signed in connection
with this Agreement and the transactions contemplated hereby shall be deemed to in clude
electronic signatures, the electronic matching of assignment terms and contract formations
on electronic platforms approved by the Parties, or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as the case
may be, to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the California Uniform
Electronic Transaction Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.
End of page. Signature page follows this page.]
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RIDA CHULA VISTA, LLC
IN WITNESS WHEREOF, this Reimbursement Agreement is executed as of the day and
year first set forth above.
CITY
CITY OF CHULA VISTA, a California
charter city and municipal corporation
By:
Maria Kachadoorian, City Manager
ATTEST:
By:
Kerry Bigelow, City Clerk
APPROVED AS TO FORM:
By:
Glen R. Googins, City Attorney
DEVELOPER
RIDA CHULA VISTA, LLC, a Delaware
limited liability company
California Contractor License Number:
1039979
By:
Ira M. Mitzner, Manager
DocuSign Envelope ID: 63A2F5F6-1483-4190-960F-D42128A6C289
For
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RIDA CHULA VISTA, LLC
Exhibit A
Estimated Cost
Improvement Description
Sewer
Improvement Cost
Estimate
E Street (G Street to H Street) 730,000
G Street Connection 85,000
H-3 Utility Corridor 380,000
Total 1,195,000
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Exhibit Y
Hotel Operator Non-Disturbance Agreement
WHEN RECORDED PLEASE MAIL TO:
Attn: Phil Brandt
Marriott International, Inc.
10400 Fernwood Road
Dept. 52/923
Bethesda, MD 20817
SPACE ABOVE THIS LINE FOR RECORDER’S USE
CONVENTION CENTER AGREEMENT
THIS CONVENTION CENTER AGREEMENT (this “Agreement”) is executed as of
May ___, 2022 by: (i) SAN DIEGO UNIFIED PORT DISTRICT (together with its successors
and permitted assignees, the “Port “), a public corporation; (ii) THE CITY OF CHULA VISTA (the
City”), (iii) CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY (the
Authority”), a joint exercise of powers authority whose members are the City and the Port,
iv) MARRIOTT INTERNATIONAL, INC. (“Manager”), a Delaware corporation, and relates to
certain land subleased, and improvements sub-subleased by, RIDA CHULA VISTA, LLC
Developer”), a Delaware limited liability company.
R E C I T A L S
A. The Port is the trustee of certain state tidelands owned by the State of California (the
Site”) as more particularly described on Exhibit A, upon which a 275,000 net usable square foot
convention center shall be constructed (the “Convention Center”, together with the Site, the
Facility”). The Convention Center will be constructed on the Site.
B. The Port leased the Site to the Authority pursuant to the Site Lease. The Authority
will own the Convention Center, which is to be constructed by Developer pursuant to, among other
agreements, the Project Implementation Agreement and operated by Developer pursuant to the
Sublease.
C. The Authority subleased the Site, and leased the Convention Center, collectively, the
Facility, to the City pursuant to the Facility Lease.
D. The City sub-subleased the Site, and subleased the Convention Center, to Developer
pursuant to the Sublease.
E. Manager and Developer entered into the Management Agreement under which
Manager will operate the Convention Center.
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NOW, THEREFORE, in consideration of the promises in this Agreement and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Port,
the City, the Authority, and Manager agree as follows:
1. Definitions. Capitalized terms used but not defined in this Agreement have the
meanings in the Management Agreement. The following terms used in this Agreement have the
meanings given below:
Convention Center” is defined in Recital A.
Ground Lease” means, collectively, (i) that certain Lease to Developer of Property located
in Chula Vista, California dated as of the date hereof, a memorandum of which was recorded on
2022, in the Official Records of the San Diego County Recorder’s Office as
document #____________________ (as the same may be amended or modified) and (ii) any New
Lease (as defined in the Ground Lease) entered into within the timeframes prescribed in the Ground
Lease.
Facility” is defined in Recital A.
Facility Lease” means that certain Facility Lease (Chula Vista Bayfront Convention Center)
dated as of the date hereof by and between the Authority, as lessor, and the City, as lessee, a
memorandum of which was recorded on ____________, 2022, in the Official Records of the San
Diego County Recorder’s Office as document #____________________ (as the same may be
amended or modified), and pursuant to which the Authority will sublease the Site and lease the
Convention Center to the City.
Management Agreement” means that certain management agreement, dated December 17,
2018, between Developer, as “Owner” and Manager under which Manager will operate the Hotel, as
may be amended.
Marriott Guarantor” shall mean Marriott International, Inc., and its successors and/or
assigns under the Marriott Guaranty Documents.
Marriott Guaranty” shall mean the guaranty evidenced by that certain Guaranty Agreement
entered into on the date of this Amendment by Marriott Guarantor in favor of Wells Fargo Bank,
National Association.
Marriott Guaranty Documents” shall mean the Marriott Guaranty and the documents
identified in the Marriott Guaranty Reimbursement Agreement from time to time as the
Reimbursement Loan Documents,” as assigned, amended, restated or supplemented from time to
time.
Marriott Guaranty Reimbursement Agreement” shall mean that certain Reimbursement
Agreement entered into on the date of this Agreement between Marriott Guarantor, and its successors
and/or assigns, and GPR Member, LLC, a Delaware limited liability company, as assigned, amended,
restated or supplemented from time to time.
Marriott Mezzanine Loan Documents” shall refer to those certain mezzanine loan
documents entered into on or about the date hereof, with GPR Mezz, LLC, a Delaware limited
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liability company, as mezzanine borrower, and MARRIOTT INTERNATIONAL CAPITAL
CORPORATION, a Delaware corporation, as the mezzanine lender.
Project Implementation Agreement” means that certain Project Implementation Agreement
by and among the City, The Bayfront Project Special Tax Financing District, the Port, the Authority,
and Developer, dated as of the date hereof, a memorandum of which was recorded on
2022, in the Official Records of the San Diego County Recorder’s Office as
document #____________________ (as the same may be amended or modified).
Site” is defined in Recital A.
Site Lease” means that certain Site Lease (Chula Vista Bayfront Convention Center) dated
as of the date hereof by and between the Port, as lessor, and the Authority, as lessee, a memorandum
of which was recorded on ____________, 2022, in the Official Records of the San Diego County
Recorder’s Office as document #____________________ (as the same may be amended or
modified), pursuant to which the Port will lease the Site to the Authority.
Sublease” means (i) that certain Sublease Agreement (Chula Vista Bayfront Convention
Center) dated May__, 2022 by and between the City, as lessor, and Developer, as lessee, which was
recorded on ____________, 2022, in the Official Records of the San Diego County Recorder’s
Office as document #____________________ (as the same may be amended or modified, the
Sublease”), pursuant to which the City will sub-sublease the Site and sublease the Convention
Center to Developer, and (ii) any New Sublease (as defined in the Sublease) entered into within the
timeframes prescribed in the Sublease.
2. Notices of Default. If Developer defaults under the Sublease, and the City notifies
Developer of the default, then the City, will also give Manager a copy of such notice concurrently
with the delivery of such notice to Developer. In addition, if Developer defaults under the
Management Agreement and Manager notifies Developer of the default, then Manager will also give
the Authority, the City, and the Port a copy of such notice concurrently with Manager’s delivery of
such notice to Developer.
3. Effect of Termination of the Site Lease, Facility Lease, and/or the Sublease.
A. The Designated Owner’s Rights under Management Agreement. If the Management
Agreement is in effect, then, for purposes of the Convention Center only, upon any termination of (i)
the Site Lease, Manager will recognize the Port as “Owner” under the Management Agreement, (ii)
the Facility Lease (but the Site Lease remains in effect), Manager will recognize the Authority as
Owner” under the Management Agreement, (iii) the Sublease (but the Site Lease and Facility Lease
remain in effect), Manager will recognize the City as “Owner” under the Management Agreement,
and, in each case, Manager will remain bound by all of the terms of the Management Agreement;
except that Manager will have no such obligation to recognize the Port, Authority or City (whichever
is required to be recognized as “Owner”, hereinafter referred to as the “Designated Owner”; provided
that should Manager no longer be required to recognize Developer or a Designated Owner as an
Owner” under the Management Agreement due to the termination of the Sublease, Facility Lease, or
Site Lease, then Developer or such Designated Owner may be referred to herein as a “Predecessor
Owner”) if such Designated Owner does not qualify as a permitted transferee under Section 10.02.A
of the Management Agreement, or, if, within 20 days after the termination date of the Site Lease,
Facility Lease or Sublease (as the case may be), the Designated Owner fails to cure all outstanding
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Defaults on behalf of “Owner” under the Management Agreement that: (i) are of a continuing nature;
ii) exist as of the termination date of the Site Lease, Facility Lease or Sublease (as the case may be);
iii) are not personal to a Predecessor Owner; and (iv) are reasonably susceptible to cure by the
Designated Owner; provided, however, the foregoing shall not apply when: (1) pursuant to Section
23.1 of the Project Implementation Agreement, the Port is required, notwithstanding any such
termination, to recognize (or to continue to recognize) the Sublease as a direct lease between (a)
Developer and (b) the Port, the Authority or the City or (2) the Premises (as defined under the
Ground Lease) includes the Site and the Improvements (as each such term is defined under the
Sublease). By way of example and without limitation, the following financial obligations accruing
before the date of termination of the Site Lease, Facility Lease or Sublease (as applicable) are
personal” to a Predecessor Owner and will not be obligations of the Designated Owner: unpaid
management fees, funds advanced by Manager in order to fund a pre-termination deficiency under
the Management Agreement, any transfer fee due in connection with a Permitted Transfer by a
Predecessor Owner, damages (including attorney’s fees) awarded to Manager by a court or arbitral
body for claims against a Predecessor Owner, costs of any pre-termination environmental
remediation, and any obligations under the Marriott Mezzanine Loan Documents, the Marriott
Guaranty Documents, and/or with respect to a Mortgage. The obligations of Manager to recognize a
Designated Owner may occur more than once; e.g., if the Sublease is terminated (but the Site Lease
and Facility Lease are not), then Manager will be compelled to recognize the City as “Owner”
subject to the terms and conditions above). If subsequent to that, the Site Lease is terminated, then
Manager will be compelled to recognize the Port as “Owner” (subject to the terms and conditions
above). Notwithstanding the foregoing, the Manager will no longer be obligated to recognize a
Designated Owner in circumstances where the Sublease, Site Lease or Facility Lease is terminated
but a “New Lease” is given in replacement of such lease to a financing lender and within 75 days of
termination of the Sublease, Site Lease or Facility Lease, as the case may be. In that circumstance,
Manager may recognize the financing lender or its nominee, and this Agreement will remain in full
force and effect treating the “New Lease” as the Sublease, Site Lease or Facility Lease, as the case
may be.
B. Limitations on Designated Owner Obligations. Notwithstanding anything to the
contrary stated in this Agreement, the Designated Owner will not be:
1. liable for any act, omission, default, misrepresentation or breach of warranty
of a Predecessor Owner or any obligations accruing prior to the termination of the Site Lease,
Facility Lease, or Sublease, as applicable (except for defaults under the Management Agreement
cured by the Designated Owner under Section 3.A);
2. subject to any offset, defense, claim or counterclaim which Manager might
be entitled to assert against a Predecessor Owner;
3. unless paid over to the Designated Owner, bound by any payment made by
Manager to a Predecessor Owner;
4. unless disclosed to the Designated Owner in a notice delivered to the
Designated Owner by a Predecessor Owner or Manager, bound by any waiver or forbearance by a
Predecessor Owner or any amendment or modification of the Management Agreement, or waiver of
the terms thereof, hereafter made, or consent or acquiescence by a Predecessor Owner; further
provided that the Designated Owner will not be bound by any waiver, forbearance, amendment or
other modification to the Management Agreement that has the effect of materially increasing a
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Predecessor Owner’s obligations or materially reducing a Predecessor Owner’s rights, or materially
increasing Manager’s rights or materially reducing Manager’s obligations, unless the Designated
Owner expressly consents to the same in writing (such consent not to be unreasonably withheld,
conditioned or delayed);
5. bound by any warranties or indemnities given or required to be given by a
Predecessor Owner under the terms of the Management Agreement;
6. liable for constructing or causing the construction of any improvements on
the Site or for funding any obligation of a Predecessor Owner to Manager for payment or
reimbursement of any expense incurred by Manager in connection the construction of such
improvements;
7. liable for any deposit, reserve fund, capital, advance or other monies that
Manager may have given to a Predecessor Owner, or paid on behalf of a Predecessor Owner, unless
such deposit, reserve fund, capital, advance or other monies are paid over to the Designated Owner;
8. liable under the Management Agreement if Manager is not obligated to
recognize such Designated Owner because of a “New Lease” granted to a financing lender or its
nominee; or
9. liable for any obligations under the Marriott Mezzanine Loan Documents
and/or the Marriott Guaranty Documents.
Without affecting the provisions of Section 3.A, nothing contained in this Section 3.B will prevent
the Designated Owner from being required to cure any prior state of events which continues after
the termination date of the Site Lease, Facility Lease or Sublease, as the case may be, to the extent
that such state of events would have imposed liability on the Designated Owner, as “Owner” under
the Management Agreement, had it occurred on or after the termination date of the Site Lease,
Facility Lease or Sublease (as applicable).
By way of example, Working Capital, Inventories, Fixed Asset Supplies and the FF&E
Reserve must be maintained at the levels required under the Management Agreement even if any
shortfall in such amounts began prior to the termination date of the Site Lease, Facility Lease or
Sublease (as applicable). Additionally, the Designated Owner would be obligated to repair physical
damage to the Convention Center in accordance with the provisions of the Management Agreement
notwithstanding that such damage may have occurred prior to the termination date of the Site Lease,
Facility Lease or Sublease (as applicable).
C. Manager’s Rights under Management Agreement. If the Management Agreement is
in effect and Manager is not in default thereunder beyond any applicable notice and cure periods,
then (i) a default under the Facility Lease, Site Lease or Sublease will not result in a termination of
the Management Agreement; (ii) the termination of the Facility Lease, Site Lease or Sublease will
not result in the termination of the Management Agreement, and except as may be required by law,
the Designated Owner will not name Manager in any action or proceeding to terminate the Facility
Lease, Site Lease or Sublease; and (iii) upon any early termination of the Facility Lease, Site Lease
or Sublease, the Designated Owner will recognize the Management Agreement and Manager’s rights
thereunder and will assume all obligations of “Owner” under the Management Agreement that
continue or arise after the termination date of the Sublease subject to the terms and conditions of
Section 3.B.
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D. Additional Assurances. The provisions of this Section 3 will be self-operative and
effective without the necessity of execution of any new management agreement or other document
on the part of any party hereto or the respective heirs, legal representatives, successors or assigns of
any such party. Each Designated Owner and Manager agrees, however, to execute and deliver upon
the request of the other, any instrument or certificate which in the reasonable judgment of the
requesting party, as applicable, may be necessary or appropriate to evidence such attornment,
including a new management agreement on the same terms and conditions as the Management
Agreement for the unexpired term of the Management Agreement.
4. Performance by Manager and Payment Defaults.
A. Performance by Manager. The City will accept performance by Manager of
Developer’s obligations under the Sublease as if the same were performed by Developer in
accordance with the terms of the Sublease.
B. Payment Defaults. If there is a payment default by Developer under the Sublease
after all notices have been given and cure periods have expired as provided for in the Sublease, with
respect to which the City gives notice to Manager under Section 2, and if Manager elects to cure the
payment default under the terms of the Sublease, then unless Developer is contesting the payment
default alleged by the City, Developer authorizes Manager to make such payment directly to the City
from funds otherwise to be distributed to Developer under the Management Agreement.
5. Termination. If a casualty or condemnation occurs that affords Developer the right,
in its discretion, to terminate the Sublease pursuant to Sections 5.1(d) or 5.2(b) of the Sublease, then
Developer agrees, in addition to the conditions to such termination specified in Sections 5.1(d) and
5.2(b) of the Sublease, the following condition must also be satisfied in order for any termination to
be effective: (a) the Management Agreement shall have terminated or (b) Manager shall have
consented to the termination of the Management Agreement and the Sublease, or an amendment of
the Management Agreement to remove the Facility from the scope of the Management Agreement,
together with the termination of the Sublease, which amendment would become effective
concurrently with the termination of the Sublease.
6. Performance by Designated Owner and Payment Defaults.
A. Performance by Designated Owner. Manager will accept performance by the
Designated Owner of its Predecessor Owner’s obligations under the Management Agreement as if
the same were performed by the applicable Predecessor Owner in accordance with the terms of the
Management Agreement.
B. Payment Defaults. If there is a payment default by Developer or a Designated Owner
under the Management Agreement after all notices have been given and cure periods have expired as
provided for in the Management Agreement, with respect to which Manager gives notice to the City
in the event the Sublease is still in effect, the Authority in the event the Facility Lease, but not the
Sublease, is still in effect, or the Port in the event the Site Lease, but not the Facility Lease or the
Sublease, is still in effect, under Section 2, and if the City, the Authority, or the Port District, as
applicable, elects to cure the payment default under the terms of the Management Agreement, then
unless Developer or the applicable Designated Owner is contesting the payment default alleged by
Manager, Developer and each Designated Owner authorizes the City, the Authority, or Port District,
as applicable, to make such payment directly to Manager and such payments will immediately
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become due and payable by Developer or the relevant Designated Owner as a rental obligation under
the Sublease, Facility Lease, or Site Lease, as applicable.
7. Bankruptcy. In the event of Developer’s bankruptcy, and notwithstanding a
rejection by or on behalf of Developer of the Sublease or the Management Agreement, each of the
Port, the Authority, and the City agrees that the terms of this Agreement will remain in full force and
effect between the Port, the Authority, the City, and Manager. This provision constitutes an
independent agreement between the Port, the Authority, the City and Manager and is intended by the
parties to survive any rejection of the Sublease or the Management Agreement in bankruptcy.
8. Initial Construction. Manager acknowledges that Port, the Authority, and the City
have no obligation with respect to initial construction of the Convention Center (other than the
obligation to request Facility Lease Advance Rent or Sublease Advance Rent, the obligation to keep
and record a Sublease Advance Rent Register, and the obligation to pay over to any Subleases
Advance Rent paid to the City to the Authority) and, for so long as each of the Site Lease, Facility
Lease, and Sublease remain in effect, the maintenance and repair of the Convention Center. Manager
hereby agrees to fully and forever release the Port, the Authority, and the City from any liability
arising from the initial construction, maintenance and repair of the Convention Center and expressly
waives the provisions of Section 1542 of the California Civil Code which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE
CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS
OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.”
Initials of Manager Signatory
9. Limitation on the Designated Owner’s Liability. Without impacting the effect of
the liability limitations set forth in the Management Agreement, the Designated Owner shall have no
obligation, nor shall it incur any liability, beyond the Designated Owner’s interest in the Facility
whether fee interest, leasehold interest, or otherwise), and Manager shall look exclusively to such
interest of the Designated Owner as a limit for the payment and discharge of any obligations imposed
upon the Designated Owner hereunder or under the Management Agreement or for recovery of any
judgment from the Designated Owner, and in no event shall the Designated Owner or any of their
respective officers, directors, shareholders, agents, administrators, representatives, servants,
employees or partners ever be personally liable for such judgment. For sake of clarity, if the
Sublease, Facility Lease or Site Lease is terminated, the Management Agreement remains in effect,
and the applicable Designated Owner is recognized as “Owner” pursuant to this Agreement, then
such Designated Owner’s assets (other than its interest in the Facility) will not be subject to, or,
unless the Designated Owner so chooses (in its sole discretion), a source of payment of, any liability
or obligation that may be owed by the Designated Owner to Manager pursuant to the Management
Agreement (as modified by this Agreement). It is the intent of this provision to create the same result
as would apply if Designated Owner were a single purpose limited liability company whose sole
assets were the Facility and the proceeds thereof. Under no circumstances would the general fund of
the Port, the Authority, or the City be subject to a claim or liability under the Management
Agreement (as modified by this Agreement) except to the extent (and solely to the extent) that any
proceeds from the sale or assignment of the Port, Authority, or City’s interest in the Site Lease,
Facility Lease, or the Sublease, respectively, in the Facility are received by the Port, the Authority, or
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the City, as applicable, after the relevant party is recognized as the “Designated Owner” and added to
the such party’s general fund.
10. Notices. Notices and other communications under this Agreement must be (i) in
writing; (ii) delivered by hand against receipt, by certified or registered mail, postage prepaid, return
receipt requested or by a nationally recognized overnight delivery service; and (iii) sent to the
address below or another address designated by the party. Any notice will be deemed received when
delivery is received or refused at the address below or the other address designated by the party.
To the Port: San Diego Unified Port District
Post Office Box 120488
San Diego, CA 92112-0488
Attn: Executive Director
Phone: (619) 686-6200
with copy to: San Diego Unified Port District
Post Office Box 120488
San Diego, CA 92112-0488
Attn: Port Attorney
Phone: (619) 686-6200
To the Authority: To the City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
Attn: City Manager
With a copy to:
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
Attn: City Attorney
To the Port District:
San Diego Unified Port District
3165 Pacific Highway
San Diego, California 92101-1128
Attn: Executive Director
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
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With a copy to:
San Diego Unified Port District
3165 Pacific Highway
San Diego, California 92101-1128
Attn: Port Attorney
Mailing Address: P.O. Box 120488
San Diego, California 92112-0488)
To the City: City of Chula Vista
276 Fourth Avenue
Attn: City Manager
with copy to: City of Chula Vista
276 Fourth Avenue
Attn: City Attorney
To Manager: Marriott International Capital Corporation
c/o Marriott International, Inc.
10400 Fernwood Road
Bethesda, Maryland 20817
Attention: Treasurer, Dept. No. 52/924.11
With a copy to:
c/o Marriott International, Inc.
10400 Fernwood Road
Bethesda, Maryland 20817
Attention: Associate General Counsel – Corporate
Transactions, Dept. No. 52/923.23
Effective as of September 1, 2022:
c/o Marriott International, Inc.
7750 Wisconsin Ave
Bethesda, MD 20814
Attention: Treasurer, Dept. No. 52/924.11
With a copy to:
c/o Marriott International, Inc.
7750 Wisconsin Ave
Bethesda, MD 20814
Attention: Associate General Counsel – Corporate
Transactions, Dept. No. 52/923.23
11. Miscellaneous.
A. Counterparts. This Agreement may be executed in any number of counterparts, each
of which will be deemed to be an original and all of which constitute one and the same instrument.
The submission of an unsigned copy of this Agreement to either party is not an offer or acceptance.
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B. Recordation of Agreement. The terms of this Agreement run with the Site and will
benefit and bind the respective successors, heirs, legal representatives and assigns of the parties that
are recognized and qualify as a Designated Owner. Any party to this Agreement may at any time
require or cause this Agreement to be recorded in the jurisdiction where the Convention Center is
located, provided that upon request following termination of the Management Agreement, each party
agrees to execute and consents to the recording of an instrument sufficient to remove this Agreement
from title to the Site.
C. Interpretation of Agreement. The Port, the Authority, the City, and Manager intend
that this Agreement excludes all implied terms to the maximum extent permitted by law. Headings
of, Sections and subsections are only for convenience and are in no way to be used to interpret the
Sections or subsections to which they refer. Any Recitals, Sections, Exhibits and Schedules to this
Agreement are incorporated by reference and are part of this Agreement. Words indicating the
singular include the plural and vice versa as the context may require. References to days, months and
years are to calendar days, calendar months and calendar years, unless otherwise specifically
provided. References that a person “will” do something mean that the person has an obligation to do
that thing. References that a person “may” do something mean that the person has the right, but not
the obligation, to do that thing. References that a person “will not” or “may not” do something mean
that the person is prohibited from doing that thing. Examples used in this Agreement and references
to “includes” and “including” are illustrative and not exhaustive.
D. Amendment of Site Lease, Facility Lease, Sublease, or Management Agreement. If
any of the Site Lease, Facility Lease, or Sublease (as the case may be), or Management Agreement is
amended, modified or supplemented, the Site Lease, Facility Lease, or Sublease (as the case may be),
or Management Agreement, as so amended, modified or supplemented will continue to be subject to
the provisions of this Agreement without the necessity of any further act by (i) with respect to the
Site Lease, the Port, (ii) with respect to the Facility Lease, the Authority, (iii) with respect to the
Sublease, the City, and Manager. Nothing in this Section 11.D will in any way expand any of the
Port’s, the Authority’s, or the City’s obligations hereunder with specific reference to Section 3.A(iv)
hereof.
E. Entire Agreement; Amendment of this Agreement; Severability. This Agreement may
only be changed by a document manually executed with a non-electronic signature of the authorized
representative of the Port, the Authority, the City, and Manager and, so long as the Sublease remains
in effect, consented to by Developer. If any term, covenant or condition of this Agreement or the
application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable,
then (i) the remainder of this Agreement, or the application of such term, covenant or condition to
persons or circumstances other than those to which it is held invalid or enforceable, shall not be
affected thereby and each term, covenant or condition of this Agreement shall be valid and
enforceable to the fullest extent permitted by law; and (ii) the Port, the Authority, the City, and
Manager will negotiate in good faith to modify this Agreement to implement their original intent as
closely as possible in a mutually acceptable manner.
F. Applicable Law. This Agreement will be construed under and governed by the laws
of the State of California.
G. Waiver. The failure or delay of either party to insist on strict performance of any of
the terms of this Agreement, or to exercise any right or remedy, will not be a waiver for the future.
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Any waiver must be manually executed with a non-electronic signature by the party giving the
waiver.
H. Non-Exclusive Remedies & Rights. Each remedy and right in this Agreement is in
addition to and not in substitution for any other remedy or right in this Agreement or under
applicable law or in equity.
I. Attorney’s Fees. In the event of any legal action or proceeding between the parties
hereto being initiated as a result of this Agreement, then the prevailing party in such action or
proceeding will be entitled to recover its reasonable attorneys’ fees and expenses arising from any
such action or proceeding from the non-prevailing party.
J. Permitted Transferee. Manager agrees that as of the date of this Agreement, each of
the Port, the Authority, and the City qualifies as a permitted transferee under Section 10.02.A of the
Management Agreement. Each of the Port, the Authority, and the City will continue to qualify as a
permitted transferee so long as no change occurs in the Port’s, the Authority’s, or the City’s
ownership or status, respectively, that would cause any of the Port, the Authority, or the City,
respectively, to be, be controlled by, or be an Affiliate of (i) a Competitor; (ii) a Specially Designated
National or Blocked Person; or (iii) a convicted felon or Person otherwise known in the community
as being of bad moral character.
K. Priority. The parties acknowledge that the memorandum of the Site Lease, the
memorandum of the Facility Lease, and the Sublease were recorded prior to the Memorandum of
Management Agreement and each of the Port, the Authority, and the City reserves all rights afforded
to it under the laws of the State of California due to such priority under its respective agreement to
which it is a party. Nothing in this Agreement will alter the relative priority of the Site Lease, Facility
Lease, or Sublease (as the case may be), and the Management Agreement. Furthermore, Manager
agrees that Manager’s rights under the Management Agreement will be subordinate to the terms of
any amendment or other modification to the Site Lease, Facility Lease, or Sublease (as the case may
be) approved in writing by Manager (such approval not to be unreasonably withheld, conditioned or
delayed).
SIGNATURES FOLLOW ON NEXT PAGE]
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IN WITNESS WHEREOF, the Port, the Authority, the City, and Manager have caused this
Agreement to be executed under seal as of the day and year first written above.
THE PORT:
SAN DIEGO UNIFIED PORT DISTRICT,
a public corporation
By:
Joseph Stuyvesant, Executive Director
By:
Thomas A. Russell, General Counsel
STATE OF CALIFORNIA )
ss:
COUNTY OF SAN DIEGO )
I hereby certify that on this ____ day of ___________, 202__, before me, the undersigned
officer, personally appeared __________________________________________, who acknowledged
herself/himself to be the ___________________ of the San Diego Unified Port District, and that
she/he, in such capacity, being authorized to do so, executed the foregoing instrument for the
purposes therein contained, by signing the name of ____________________, as
of the San Diego Unified Port District.
IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.
Notary Public
My Commission expires: ________________________
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CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY:
CHULA VISTA BAYFRONT FACILITIES
FINANCING AUTHORITY, a joint exercise of
powers authority
By:
Joseph Stuyvesant, Executive Director
By:
Co-Counsel, Thomas A. Russell, General
Counsel of the San Diego Unified Port
District
By:
Co-Counsel, Glen R. Googins, City
Attorney of the City of Chula Vista
STATE OF CALIFORNIA )
ss:
COUNTY OF SAN DIEGO )
I hereby certify that on this ____ day of ___________, 202__, before me, the undersigned
officer, personally appeared __________________________________________, who acknowledged
herself/himself to be the ___________________ of the Chula Vista Bayfront Facilities, and that
she/he, in such capacity, being authorized to do so, executed the foregoing instrument for the
purposes therein contained, by signing the name of ____________________, as
of the Chula Vista Bayfront Financing Authority.
IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.
Notary Public
My Commission expires: ________________________
Page 690 of 761
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CITY OF CHULA VISTA
CITY OF CHULA VISTA, a California charter
city and municipal corporation
By:
Maria V. Kachadoorian, City Manager
APPROVED AS TO FORM:
By:
Glen R. Googins, City Attorney
NOTARY ACKNOWLEDGMENTS FOLLOW ON NEXT PAGE]
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STATE OF CALIFORNIA )
ss:
COUNTY OF SAN DIEGO )
I hereby certify that on this ____ day of ___________, 202__, before me, the undersigned
officer, personally appeared __________________________________________, who acknowledged
herself/himself to be the ___________________ of the City of Chula Vista, and that she/he, in such
capacity, being authorized to do so, executed the foregoing instrument for the purposes therein
contained, by signing the name of ____________________, as ____________________ of the City
of Chula Vista.
IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.
Notary Public
My Commission expires: ________________________
STATE OF CALIFORNIA )
ss:
COUNTY OF SAN DIEGO )
I hereby certify that on this ____ day of ___________, 202__, before me, the undersigned
officer, personally appeared __________________________________________, who acknowledged
herself/himself to be the ___________________ of the City of Chula Vista, and that she/he, in such
capacity, being authorized to do so, executed the foregoing instrument for the purposes therein
contained, by signing the name of ____________________, as ____________________ of the City
of Chula Vista.
IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.
Notary Public
My Commission expires: ________________________
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MANAGER:
MARRIOTT INTERNATIONAL, INC.,
a Delaware corporation
By:
Name: Richard Jacobs
Title: Authorized Signatory
STATE OF MARYLAND )
ss:
COUNTY OF MONTGOMERY )
I hereby certify that on this ___ day of _____________, 202___, before me, the undersigned
officer, personally appeared ____________, who acknowledged herself/himself to be the
of Marriott International, Inc., and that he, in such capacity, being authorized to
do so, executed the foregoing instrument for the purposes therein contained, by signing the name of
the corporation by him or herself as ________________ of Marriott International, Inc.
IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.
Notary Public
My Commission expires: ________________________
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EXHIBIT A
SITE
See Attached]
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DEVELOPER’S AGREEMENT
In exchange for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in connection with the execution and delivery of that certain Convention
Center Agreement dated as of ___________ __, 2022 (the “Convention Center Agreement”) by and
between the San Diego Unified Port District, as the “Port”, the City of Chula Vista, as the “City”,
and the Chula Vista Bayfront Facilities Financing Authority (the “Authority”), a joint exercise of
powers authority whose members are the City and the Port, and Marriott International, Inc., as
Manager”, from which the undersigned (“Developer”) is receiving material benefit, Developer
i) agrees that the performance by the City under the Convention Center Agreement in accordance
with the terms thereof will not be deemed a breach of any of its obligations to Developer under the
Sublease; (ii) agrees that the performance by Manager under the Convention Center Agreement in
accordance with the terms thereof will not be deemed a breach of any of its obligations to Developer
under the Management Agreement; (iii) agrees that any payments by Manager to the City referenced
in Section 4.B of the Convention Center Agreement which are made in accordance with the terms
thereof satisfies Manager’s obligations under the Management Agreement to distribute such funds to
Developer; (iv) releases Manager from any and all obligations relating to such payments referenced
in Section 4.B of the Convention Center Agreement which are made in accordance with the terms
thereof; and (v) releases the City from any and all obligations relating to such payments referenced
in Section 6.B of the Convention Center Agreement which are made in accordance with the terms
thereof, and such payments will be added to Developer’s payment obligations under the Sublease
that are then due and owing. Subject to the terms of the previous sentence, this agreement by
Developer is irrevocable until the Sublease or Management Agreement terminate. Developer, as
Owner” under the Management Agreement and sub-sublessee of the Site, and sublessee of the
Convention Center, under the Sublease, and the City and Manager by accepting this Developer’s
Agreement, acknowledge and agree for themselves and their respective heirs, representatives,
successors and assigns, that: (a) the Convention Center Agreement does not constitute a waiver by
the City or Developer of any of their respective rights under the Sublease, nor does the Convention
Center Agreement in any way release the City or Developer from their respective obligations to
comply with the terms, provisions, conditions, covenants, agreements and clauses of the Sublease;
and (b) the provisions of the Sublease remain in full force and effect and must be complied with by
Developer and the City.
Date: __________________, 2022
DEVELOPER:
RIDA CHULA VISTA, LLC,
a Delaware limited liability company
By:
Name: Ira Mitzner
Title: President
NOTARY ACKNOWLEDGMENT FOLLOWS ON NEXT PAGE]
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STATE OF _______________________ )
ss:
CITY/COUNTY OF _______________ )
I hereby certify that on this __________ day of 202__, before me, the undersigned officer,
personally appeared _________________________________________, who acknowledged
herself/himself to be the ___________________ of RIDA Chula Vista, LLC, and that she/he, in such
capacity, being authorized to do so, executed the foregoing instrument for the purposes therein
contained, by signing the name of ____________________, as ____________________ of RIDA
Chula Vista, LLC.
IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.
Notary Public
My Commission expires: ________________________
Page 696 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
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Exhibit Z
Construction Standards
RIDA Chula Vista, LLC and its contractors, subcontractors,
employees and agents are required to comply with the following
City of Chula Vista design and construction standards:
For work related to the Developer’s Phase 1A Infrastructure
Improvements, the Design and Construction Standards
adopted by the City of Chula Vista for public works projects at
the time the City approved the drawings and specifications for
the project.
For work related to the Convention Center, the Resort Hotel
and the Parking Improvements, the Chula Vista Building
Code.
RIDA is NOT required to comply with any other City of Chula
Vista design and construction standards or exceed such City of
Chula Vista design and construction standards.
Other public agency standards and regulations may apply.
If any requirement set forth in the applicable City of Chula Vista
design and construction standards may be satisfied in more than one
manner, RIDA may elect to satisfy such requirement in any such
manner.
Please contact [_________________] with any questions.
Approved By:
Maria Kachadoorian, City Manager
City of Chula Vista
Page 697 of 761
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Exhibit AA
In-Balance Certificate
20[__]
Chula Vista Bayfront Facilities Financing Authority
PO Box 5296
Chula Vista, CA 91912
Attention: Executive Director
RIDA Chula Vista, LLC
1777 Walker Street, Suite 501
Houston, Texas 77010
Attention: Ira Mitzner; Luke Charlton
Re: Convention Center Payment Request No. [___] under Project Implementation Agreement
the “Agreement”), dated as of May 26, 2022, by and among the City of Chula Vista, a
chartered municipal corporation (“City”), the Bayfront Project Special Tax Financing
District, a financing district established and existing pursuant to Chula Vista Municipal Code
Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance (the
Financing District”), the San Diego Unified Port District, a public corporation (the “Port
District”), the Chula Vista Bayfront Facilities Financing Authority (the “Authority”), a joint
exercise of powers entity created by the City and the Port District pursuant to Joint Exercise
of Powers Act (defined in the Agreement), and RIDA Chula Vista, LLC, a Delaware limited
liability company (“Developer”).
Payment Request of $[_________]
Requested Payment Date: [_________], 20[__]
Ladies and Gentlemen:
Capitalized terms used herein without definition shall have the meanings assigned to them in
the Agreement.
JPMorgan Chase Bank, N.A., (the “Administrative Agent”) acting as Administrative Agent
under that certain Bond Purchase and Continuing Covenant Agreement dated as of May 26, 2022, by
and among the Authority, the Port District, the City and the Administrative Agent (the “Bond
Purchase Agreement”) hereby certifies to the Authority and Developer that the Project is In-
Balance within the meaning of Section 8.08 of the Bond Purchase Agreement.
The Authority is entitled to rely on the foregoing certification in authorizing and making the
disbursement requested in the Payment Request.
SIGNATURE PAGE FOLLOWS]
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AA-2
4825-3218-1203/024036-0079
IN WITNESS WHEREOF, the undersigned has executed this In-Balance Certificate as of
this [___] day of [_________], 20[__].
Administrative Agent:
JPMorgan Chase Bank, N.A.
By: _____________________________________
Name:
Title:
Page 699 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Every politician is responsible for what is published in their
campaign material
Once a politician exposed to lying it can NEVER BE TRUSTED
Micheal Inzunza at a Veterans Event claimed to be amilitary Family member
Michel Inzunza Lied
•However, you are closer to the
•Slum Lord
•and
•Stripper Gate
Family
Tamayo claimed to be endorsed By Senator Steve Padilla
Senator Steve Padilla Did Not Endorse Tamyo
What else did Tamyo Lied about?
Does Tamayo Lies like
Michael Inzunza?
Written Communications - PC
Acosta - Received 5/29/2026
Page 700 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Written Communications - PC
Acosta - Received 5/29/2026
Page 701 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Written Communications - PC
Acosta - Received 5/29/2026
Page 702 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
ISLAMIC CENTER SHOOTING
Muslim leaders call for action
after Islamic Center of San Diego
shooting by: Isabella Paoletto Posted: May 25, 2026 / 09:25 PM PDT Updated: May 25, 2026 / 09:25 PM PDT
Written Communications - PC
Acosta - Received 6/1/2026
Page 703 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
To Michael Inzunza’s team members,
cronies, and puppets:
•You have seen my post about MichaelInzunza,
•Why are you still ignoring the issue?.
•Are you afraid of him?
•Based on published reports and
•my own experience, Michael Inzunza’sbehavior is unprofessionalunbecoming of a Chula Vistarepresentative.
•If concerns me that
•Michael Inzunza’s mentalunpredictability continues to be ignored while been paid with my taxpayer money, that is unacceptable.
•It concerns me that Michael Inzunza’smental behavior continues to be ignoredby his team, crones and or puppets
•I question Micheal Inzunzabehavior while not in public
•If you ignored Inzunza posing for apicture while someone displaying
•an antisemitic gesture,
•You are part of the problem, not thesolution.
•This must stop now.
•Are you waiting for a tragedy,
•knowing that one of the Islamic Center
•Shooter lived in East Chula Vista?
Written Communications - PC
Acosta - Received 6/1/2026
Page 704 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
•After Micheal Inzunza
•racist incident against A little Black Kid at Mater Dei Catholic High School in
Chula Vista
•Resulted for Inzunza to be suspended, placed on leave and NEVER REHIRE
•Should not be Welcome or allowed to attend or participate in any Community
Event
•Below is a Link to the Legal Document
•
•https://1drv.ms/b/c/8dcf48c141ff159a/IQBNmNjLN_IuRqHlwUfZ6hc
AARWPSObp-zRnYYW2vDuIIo0
Written Communications - PC
Acosta - Received 6/1/2026
Page 705 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
NATIONAL SECURITY
The 'OK' Hand Gesture Is Now Listed As A Symbol Of
Hate and White Supremacy
SEPTEMBER 26, 20194:27 PM ET
Michel Inzunza, You suspended an African American Kid
and called him a PUNK because of his hair.
Then you pose for picture with Students
displaying a White Supremacy sign
is that what you permit and teach the young minds?
Let me remind you, “you are Mexican American”
Written Communications - PC
Acosta - Received 6/1/2026
Page 706 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Written Communications - PC
Acosta - Received 6/1/2026
Page 707 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Written Communications - PC
Acosta - Received 6/1/2026
Page 708 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Joseph A Raso
C HUL A VISTA , CA 91910
Telephone
Honorable Mayor and City Council Members, June 2, 2026
I am appearing before you this evening to bring attention to a
significant and growing liability facing the City of Chula Vista
regarding the safety of our Downtown pedestrian crosswalks.
As the City continues to invest in and promote the revitalization of
Downtown Third Avenue, increased pedestrian activity has created a
corresponding need for enhanced safety measures. City officials and
staff are aware that the combination of increased foot traffic and
excessive vehicle speeds has resulted in a concerning pattern of
vehicle-related incidents within the Downtown district.
Since 2022, there have been 16 reported collisions involving
vehicles striking either pedestrians or fixed objects in the Downtown
area. Most alarming is the recent incident in which a young boy was
struck while using a Downtown crosswalk and suffered serious
injuries requiring hospitalization. This incident serves as a stark
reminder that the risks associated with these uncontrolled crossings
are not theoretical—they are real, foreseeable, and potentially life-
altering.
City Staff possesses clear knowledge of an ongoing public safety
concern. With each additional incident, the City's exposure to legal
liability and financial damages increases. Courts have consistently
recognized that when a public agency becomes aware of a
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Written Communicatioins - PCRaso - Received 06/01/2026
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dangerous condition and fails to take reasonable corrective action,
that agency may face substantial liability when injuries occur.
Fortunately, a practical and cost-effective solution already exists. In
other areas of Chula Vista, the installation of stop signs has
successfully reduced vehicle speeds and improved safety. Attached
are photographs of locations where stop signs have proven effective,
as well as seven heavily utilized uncontrolled crosswalks along
Third Avenue where similar traffic-control measures could
significantly reduce the risk of future vehicle-versus-pedestrian
collisions.
The question before the City is not whether another serious accident
will occur, but whether reasonable preventative action will be taken
before it does. Every day that these hazardous conditions remain
unaddressed increases the risk of additional injuries and further
exposes the City to avoidable legal and financial consequences.
For these reasons, I respectfully urge the City Council to place this
matter on a future agenda as soon as possible and direct staff to
evaluate and implement appropriate traffic-calming measures,
including the installation of stop signs at identified Downtown
crosswalk locations.
The safety of our residents, visitors, and businesses and the City's
responsibility to protect them requires prompt action.
Thank you for your consideration.
Respectfully Submitted,
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Written Communicatioins - PCRaso - Received 06/01/2026
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elow: Stop signs on “J” Street east of Interstate 5
Primary function: Slow traffic off freeway
Below: Stop signs on Nacion Ave south of “L” St
Primary function: Slow traffic around blind corner
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Written Communicatioins - PCRaso - Received 06/01/2026
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City of Chula Vista - City Council
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Below: Uncontrolled Third Ave Crosswalk South of “E”
Below: Uncontrolled Third Ave Crosswalk South of Davidson
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Written Communicatioins - PCRaso - Received 06/01/2026
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Below: Uncontrolled Third Ave Crosswalk at Center Street
Below: Uncontrolled Third Ave Crosswalk at Madonna
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Written Communicatioins - PCRaso - Received 06/01/2026
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City of Chula Vista - City Council
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Below: Uncontrolled Third Ave Crosswalk at Parkway
Below: Uncontrolled Third Ave Crosswalk at Roosevelt
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Written Communicatioins - PCRaso - Received 06/01/2026
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Below: Uncontrolled Third Ave Crosswalk at Alvarado
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Written Communicatioins - PCRaso - Received 06/01/2026
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v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
Regional Transportation Improvement Program: Adopt the TransNet Local Street Improvement Program of
Projects for Fiscal Years 2026-27 through 2030-31
Report Number: 26-0157
Location: No specific geographic location
Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California
Environmental Quality Act (“CEQA”) State Guidelines. Therefore, pursuant to State Guidelines Section
15060(c)(3), no environmental review is required.
Recommended Action
Conduct the public hearing and adopt a resolution approving the proposed Transnet Local Street
Improvement Program of Projects for fiscal years 2026-27 through 2030-31.
SUMMARY
SANDAG, acting as the Regional Transportation Commission, approves on a biennial basis a multi -year
program of projects submitted by local jurisdictions identifying all transportation projects eligible to use
transportation sales tax (TransNet) funds. All of the projects that the City of Chula Vista proposes to fund
with TransNet funds must be included in the Regional Transportation Improvement Program (RTIP), as well
as projects that are funded with Federal or State transportation funds. The list of projects that are part of this
action reflect the City’s fiscal year 2026-27 Capital Improvement Program (CIP), which was adopted by the
City Council on May 19, 2026. Staff recommends adopting the TransNet Local Street Improvement Program
of Projects for fiscal years 2026-27 through 2030-31 for inclusion in the RTIP.
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ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act
(CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the
State CEQA Guidelines because the proposed activity consists of a governmental fiscal/administrative
activity which does not result in a physical change in the environment. Therefore, pursuant to Section
15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Each of the projects identified in the TransNet Local Street Improvement Program of Projects for fiscal years
2026-27 through 2030-31, has been or is in the process of being reviewed or will require review under CEQA
at a future time in accordance with the State CEQA Guidelines and the City’s Municipal Code. This
determination is predicated on State CEQA Guidelines Section 15004, which provides direction to lead
agencies on the appropriate timing for environmental review.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The voters of San Diego County approved the TransNet Program as Proposition A in November 1987. This
proposition enacted a half-cent increase in the countywide sales tax through 2008 to fund specified
transportation programs and projects. One third of the revenues generated by the tax were allocated by
SANDAG to the local agencies for local street and road purposes.
In November 2004, 67 percent of County voters supported Proposition A, which extends TransNet from 2008
to 2048. The TransNet Extension Ordinance states that at least 70 percent of the funds allocated to local
agencies for local road projects should be used to fund Congestion Relief (CR) projects. CR projects include
the construction of new or expanded facilities, rehabilitation and reconstruction of roadways, traffic
signalization, transportation infrastructure to support smart growth, capital improvements for transit
facilities, and operating support for local shuttle and circulator transit routes. No more than 30 percent of
TransNet funds allocated to local agencies for local road projects are expected to be used for local street and
road maintenance.
On January 5, 2026, SANDAG provided the member agencies with an updated TransNet Revenue Forecast -
Local Street Improvement Program for fiscal years 2026-27 through 2030-31 (Attachment 1), which are
conservative estimates for planning purposes. The fiscal year 2026-27 projected revenue is currently
estimated to be $9,856,000 with an approximate $250,000 increase in revenue for each following year.
A summary of the 5-Year TransNet Allocation and the City projects currently programmed for TransNet
funding are shown on Attachment 2. There are no new TransNet funded projects categories proposed for
addition in the 2027 RTIP Program of Projects. Appropriations of funds are not requested at this time –
appropriation of the funds for these projects were part of the approval process for the Fiscal Year 2026-27
Capital Improvement Program (CIP), which was adopted by the City Council on May 19, 2026. Amounts
shown for future fiscal years are estimated and will be revised in the future as revenues and specific projects
are identified for those respective years.
The following are the major projects that will be included for TransNet funding in fiscal year 2026-27.
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Congestion Relief Projects
CHV39: Traffic Signal System Optimization (RAMS, TRF0357, TRF0423, TRF0447)
Provision of consultant services and/or equipment such as traffic signal timing coordination projects and
adaptive traffic control systems, to optimize the performance of existing traffic signal systems for improved
traffic circulation, reduced intersection delays, and reduced congestion throughout the City.
CHV44: I-805, SR54 and Otay Mesa Transportation System Improvements (TRF0445)
Preliminary analysis of the I-805/ SR54 interchange to include other on/off ramps on SR54 to I-5, the Bonita
Road and Main Street on/off ramps to I-805 and the impact of traffic in Otay Mesa on La Media Road and
other major streets in City, in order to reduce congestion.
CHV48: Major Pavement Rehabilitation (STM0420)
Annual pavement rehabilitation and reconstruction projects requiring thick overlays (1-inch or greater)
and/or major street reconstruction.
CHV60: Traffic Signal Updates (TRF0454)
Modifications at these intersections will allow motorists to safely maneuver left turns into the intersection
with a protected phase and improve signal visibility by installing signal standards with mast arms. This will
enhance traffic safety, reduce broadside accidents, potentially decrease delays and improve air quality.
CHV89: Olympic Parkway Safety Enhancements (TRF0452)
Striping modifications and improvements to signage and traffic signals that were identified in the Olympic
Parkway Road Safety Assessment at Town Center Drive and Eastlake Parkway. Includes the installation of
radar speed feedback signs between Brandywine Avenue and La Media Road.
Maintenance Projects
CHV06: Pavement Management System/Minor Pavement Rehabilitation Program (CTY0219,
STL0463)
Pavement maintenance treatments (less than 1.0-inch thickness) and other pavement repairs as well as
managing and maintaining the City's Pavement Management System (PMS).
CHV22: Advance Planning Studies (CTY0202, CTY0232)
Manages asset inventories, master plans, special studies to identify current and future infrastructure needs
and manages available funding sources.
CHV34: Neighborhood Traffic and Pedestrian Safety Program (TRF0446, TRF0453)
Provide community outreach and education regarding traffic/safety hazards, preparation of plans and
construction of traffic calming, pedestrian safety measures and ADA improvements.
CHV35: Traffic Signing. Studies and Signal Upgrade (STM0369, TRF0448, TRF0449, TRF0450,
TRF0451)
Upgrading and maintenance of traffic signal and street light systems in the City. Work includes, but is not
limited to interconnect cables and conduit, vehicle and bike detection systems, emergency vehicle
preemption systems, traffic signal controllers, and new street light fixtures.
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CHV99: Anita St and Industrial Blvd Bicycle and Pedestrian Improvements (STL0482)
Project Approval & Environmental Document (PA&ED) and Plans, Specifications & Estimate (PS&E) funds
for the design of curb, gutter, sidewalk, and curb ramps, signage, striping, landscaping, and replacing and/or
improving existing pavement.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The proposed program reflects revenue projections and projects for fiscal years 2026-27 through 2030-31
and results in no current-year fiscal impact.
ONGOING FISCAL IMPACT
The fiscal impact and appropriation for these projects were considered as part of the fiscal year 2026-27
Capital Improvement Program (CIP), which was adopted by the City Council on May 19, 2026. Amounts
shown for future fiscal years are estimated and will be revised in the future as revenues and specific projects
are identified for those respective years.
Completed projects will require routine maintenance, which will be incorporated into the Public Works
routine maintenance program and funded annually through the department’s operating budget.
ATTACHMENTS
1. TransNet Revenue Forecast dated January 5, 2026
2. 5-Year TransNet Allocation FY27-FY31
Staff Contact: Luis Schaar, Director of Engineering/City Engineer
Eddie Flores, Assistant Director of Engineering/City Traffic Engineer
Patrick Moneda, Principal Civil Engineer
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City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ADOPTING THE TRANSNET LOCAL STREET
IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL
YEAR 2026-27 THROUGH 2030-31 FOR INCLUSION IN THE
REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM
WHEREAS, on November 4, 2004, the voters of San Diego County approved the San
Diego Transportation Improvement Program Ordinance and Expenditure Plan (TransNet
Extension Ordinance), which has been amended from time to time in accordance with
the applicable amendment requirements; and
WHEREAS, the TransNet Extension Ordinance provides that SANDAG, acting as
the Regional Transportation Commission, shall approve on a biennial basis a multi-year
program of projects submitted by local jurisdictions identifying those transportation projects
eligible to use transportation sales tax (TransNet) funds; and
WHEREAS, the City of Chula Vista was provided with an estimate of annual TransNet
local street improvement revenues for fiscal years 2027 through 2031; and
WHEREAS, staff recommends adopting the TransNet Local Street Improvement
Program of Projects for fiscal years 2026-27 through 2030-31 for inclusion in the Regional
Transportation Improvement Program (RTIP), as shown on the attached table (Exhibit 1); and
WHEREAS, the City of Chula Vista has held a noticed public hearing with an agenda
item that clearly identified the proposed list of projects prior to approval of the projects by its
authorized legislative body in accordance with Section 5(A) of the TransNet Extension
Ordinance and Rule 7 of SANDAG Board Policy No. 31.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
1. The City of Chula Vista adopts the TransNet Local Street Improvement Program of
Projects for fiscal years 2026-27 through 2030-31, as provided in Exhibit 1, which is
attached hereto and incorporated herein by this reference, for inclusion in the Regional
Transportation Improvement Program (RTIP).
2. Pursuant to Section 2(C)(1) of the TransNet Extension Ordinance, the City of Chula Vista
certifies that no more than 30 percent of its cumulative revenues shall be spent on local
street and road maintenance-related projects, or that its expenditures are consistent with the
most recent TransNet Extension Ordinance requirements adopted by SANDAG.
3. Pursuant to Section 4(E)(3) of the TransNet Extension Ordinance, the City of Chula Vista
certifies that all new projects, or major reconstruction projects, funded by TransNet
revenues shall accommodate travel by pedestrians and bicyclists, and that any exception to
this requirement permitted under the Ordinance and proposed shall be clearly noticed as
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Resolution No.
Page 2
part of the City of Chula Vista’s public hearing process.
4. Pursuant to Section 8 of the TransNet Extension Ordinance, the City of Chula Vista
certifies that the required minimum annual level of local discretionary funds to be expended
for street and road purposes will be met throughout the 5-year period consistent with the
most recent Maintenance of Effort Requirements adopted by SANDAG.
5. Pursuant to Section 9A of the TransNet Extension Ordinance, the City of Chula Vista
certifies that it will exact $3,109.88 plus all applicable annual increases, from the private
sector for each newly constructed residential housing unit in that jurisdiction (unless
exempted under the TransNet Extension Ordinance,) and shall contribute such exactions to
the Regional Transportation Congestion Improvement Program (RTCIP).
6. Pursuant to Section 13 of the TransNet Extension Ordinance, the City of Chula Vista
certifies that it has established a separate Transportation Improvement Account for
TransNet revenues with interest earned expended only for those purposes for which the
funds were allocated.
7. Pursuant to Section 18 of the TransNet Extension Ordinance, the City of Chula Vista
certifies that each project of $250,000 or more will be clearly designated during
construction with TransNet project funding identification signs.
8. The City of Chula Vista does hereby certify that all other applicable provisions of the
TransNet Extension Ordinance and SANDAG Board Policy No. 31 have been met.
9. The City of Chula Vista agrees to indemnify, hold harmless, and defend SANDAG, the
San Diego County Regional Transportation Commission, and all officers and employees
thereof against all causes of action or claims related to City of Chula Vista’s TransNet
funded projects.
10. The Mayor, or designee, is authorized to submit to SANDAG the Fiscal Year 2026-27 through
2030-31 TransNet Program of Projects, as shown in Exhibit 1, as requested or required by
SANDAG.
Presented by Approved as to form by
Luis Schaar Marco A. Verdugo
Director of Engineering & Capital Projects/ City Attorney
City Engineer
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June 2, 2026 Post City Council/Housing Authority Agenda
1/5/2026 DRAFT
Jurisdiction Population3 Miles3 FY 2026*
Carlsbad 116,368 430.35 $5,023 $5,130 $5,270 $5,407 $5,546 $5,687
Chula Vista 281,401 557.28 $9,649 $9,856 $10,127 $10,391 $10,658 $10,931
Coronado 22,610 45.76 $826 $843 $865 $886 $908 $930
4
El Cajon 104,932 195.91 $3,570 $3,645 $3,745 $3,842 $3,940 $4,040
Encinitas 61,956 174.88 $2,425 $2,476 $2,543 $2,609 $2,675 $2,743
Escondido 150,425 321.81 $5,301 $5,414 $5,563 $5,707 $5,853 $6,003
4
La Mesa 60,908 151.76 $2,284 $2,332 $2,395 $2,457 $2,519 $2,582
Lemon Grove 28,163 61.63 $1,040 $1,061 $1,089 $1,117 $1,144 $1,172
National City 58,965 103.88 $1,997 $2,039 $2,094 $2,147 $2,201 $2,257
Oceanside 174,340 430.61 $6,425 $6,563 $6,743 $6,918 $7,096 $7,277
Poway 50,379 174.89 $2,146 $2,191 $2,250 $2,308 $2,366 $2,425
San Diego 1,408,937 2,780.29 $48,062 $49,095 $50,450 $51,773 $53,110 $54,473
4
4
4
Vista 101,599 176.15 $3,390 $3,462 $3,556 $3,648 $3,741 $3,836
Subtotal Street & Road***3,330,139 8,019.9 $118,034 $120,740 $124,136 $127,451 $130,923 $134,709
Local EMP5
Local Smart Growth
*Estimate updated in January 2026
**Revenue estimates for planning purposes only. Payments will be based on actual sales tax monthly receipts from the State Board of Equalization.
*** Totals may not add up due to rounding
4. Revenues are net of estimated commercial paper and/or bond debt service payments
5. EMP to be distributed on a project by project basis; Smart Growth to be allocated based on Call for Projects process.
TransNet Revenue Forecast - Local Street Improvement Program1
Revised FY 2026 and Estimates for FY 2027 to FY 2031 (in $000s)**
1.Projection of revenues are based on estimate of growth rate on taxable sales as forecasted by SANDAG and excludes interest and prior year excess funds.
2. Distribution of revenue estimates are based on the 2004 Proposition A Extension: San Diego Transportation Improvement Program and Expenditure Plan and
apportioned as follows: (a) $50,000 annual base per agency ; (b) balance distributed on a formula of 2/3 population and 1/3 maintained miles.
3. Population numbers are based on the Department of Finance January 2025 population; Maintained miles figures are based on Caltrans 2024 California Public Road
DRA
F
T
Attachment 1
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City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
MPO ID
Traffic Signal System Optimization (RAMS,
TRF0357, TRF0423, TRF0447)CHV39 $1,015,500 $600,000 $600,000 $600,000 $600,000
I-805, SR54 and Otay Mesa Transportation
System Improvements (TRF0445)CHV44 $100,000 ----
Pavement Major Rehabilitation Program
(Overlays/ Reconstruct) (STM0420)CHV48 $4,878,910 $5,087,000 $7,201,000 $7,468,000 $7,741,000
New Sidewalk Improvements (TRF0414) CHV58 -$2,200,000 $300,000 $300,000 $300,000
Traffic Signal Upgrades (TRF0454)CHV60 $299,000 $200,000 $200,000 $200,000 $200,000
Olympic Parkway Safety Enhancements
(TRF0452)CHV89 $255,590 ----
$6,549,000 66.4%$8,087,000 79.9%$8,301,000 79.9%$8,568,000 80.4%$8,841,000 80.9%
$6,899,200 70.0% $7,088,900 70.0% $7,273,700 70.0% $7,460,600 70.0% $7,651,700 70.0%
Pavement Rehabilitation Program
(CTY0219,STL0463) CHV06 $350,000 $600,000 $600,000 $600,000 $600,000
Advanced Planning Studies
(CTY0202,CTY0232)CHV22 $110,000 $150,000 $200,000 $200,000 $200,000
School Zone Traffic Calming Program
(TRF0345)CHV33 -$100,000 $100,000 $100,000 $100,000
(TRF0446, TRF0453)CHV34 $1,055,000 $250,000 $250,000 $250,000 $250,000
Traffic Signing, Studies and Signal Upgrade
(STM0369, TRF0448, TRF0449, TRF0450,
TRF0451)CHV35 $1,407,000 $550,000 $550,000 $550,000 $550,000
Traffic Monitoring Program (TRF0274,
TRF0321)CHV45 -$40,000 $40,000 $40,000 $40,000
Storm Drain and Bridge Culvert Repair
(DRN0217)CHV50
-----
ADA Curb Ramps Program
(STL0454,STL0475,STL0479)CHV75 -$350,000 $350,000 $350,000 $350,000
Anita St and Industrial Blvd Bicycle and
Pedestrian Improvements (STL0482)CHV99 $385,000 ----
$3,307,000 33.6%$2,040,000 20.1%$2,090,000 20.1%$2,090,000 19.6%$2,090,000 19.1%
FY 2030-31
$10,931,000
$10,931,000
FY 2029-30
$10,658,000
$10,658,000
CIP PROGRAM TOTAL
*Estimated Annual TransNet Revenue
$9,856,000
$9,856,000
Attachment 2 and Exhibit 1 to Resolution
PROJECT
MA
I
N
T
E
N
A
N
C
E
Minimum Required Congestion Relief
CO
N
G
E
S
T
I
O
N
R
E
L
I
E
F
FY 2026-27
*TransNet Revenue Forecast - Local Street Improvement Program (Estimates for FY2027 to FY2031) dated 1/05/2026
ESTIMATED TRANSNET ALLOCATION - FY 2026-27 THROUGH FY 2030-31
$10,127,000
$10,127,000
FY 2027-28 FY 2028-29
$10,391,000
$10,391,000
(Congestion Relief) SUBTOTAL
(Maintenance) SUBTOTAL
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City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Item 7.1:
2027 Regional Transportation
Improvement Program
TRANSNET LOCAL STREET
IMPROVEMENT PROGRAM2027 RTIP
FY 2027-2031
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June 2, 2026 Post City Council/Housing Authority Agenda
2027 RTIP
FY 2027-2031
What is the Local Street Improvement Program?
Transportation Projects for the
San Diego Region
(5-Year Plan)
-Local Street Improvement Program
-Includes TransNet programming for all
Local Agencies (Program of Projects)
TransNet Programming
by Public Agency
-Approved by City Council on
May 19, 2026
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Local Street Improvement Program
•FY 2027 Regional Local Street Improvement Program:
$120,740,000 in TransNet Funding
•Chula Vista’s FY 2027 TransNet Revenue Forecast: $9,856,000
(dated 1/5/2026)
•Chula Vista receives approximately 8% of Regional Program
Budget
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June 2, 2026 Post City Council/Housing Authority Agenda
Chula Vista’s Program of Projects (POP)
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City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Recommended Action
•Conduct a public hearing and adopt a resolution approving the
proposed TransNet Local Street Improvement Program of Projects for
Fiscal Years 2026-27 through 2030-31.
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v . 0 0 5 P a g e | 1
June 2, 2026
ITEM TITLE
Housing Authority & City Housing Funding: Approve a Funding Commitment of up to $4,000,000 for the
Park Hill UMC Development
Report Number: 26-0217
Location: 545 East Naples Street
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: Yes
Environmental Notice: The funding action has been determined to be exempt from the California
Environmental Quality Act (CEQA) pursuant to State CEQA Guidelines Section 15061(b)(3). The Project itself
meets all requirements set forth in California Government Code Section 65913.16(c). No further review
under CEQA is required.
This item was continued from the May 19, 2026 meeting.
Recommended Action
Adopt the following resolutions:
A. Chula Vista Housing Authority resolution authorizing a commitment of up to $3,000,000 in Low- and
Moderate-Income Housing Asset Fund funds for the construction of an affordable housing
development to be located at 545 East Naples Street; and
B. City of Chula Vista resolution authorizing a commitment of up to $1,000,000, less $25,000 for City
staff administrative costs, in Local Housing Trust Fund funds for the construction of an affordable
housing development to be located at 545 East Naples Street. (4/5 Vote Required)
SUMMARY
The City of Chula Vista (“City”) and Chula Vista Housing Authority (“Housing Authority”) issued a Notice of
Funding Availability for new construction of affordable housing, with a combined available total of
$4,000,000 (less $25,000 for administrative costs). After interviews with applicants and a thorough review
of submitted materials, City staff recommend that the funds be awarded to the Project, a proposed 68-unit
development to be developed by Wakeland Housing and Development Corporation.
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On May 19, 2026 the City Council continued this item, requesting staff further address community feedback
related to the Project design to adequately mitigate soil and drainage concerns, privacy concerns, and
concerns regarding the site’s parking configuration. The draft Resolutions have been updated to include a
condition to address these concerns.
ENVIRONMENTAL REVIEW
The funding action has been reviewed for compliance with the California Environmental Quality Act (CEQA),
and it has been determined that it is exempt pursuant to State CEQA Guidelines Section 15061(b)(3), in that
under the general rule, CEQA applies only to projects which have the potential for causing a significant effect
on the environment. The Project that would receive these funds has been determined to meet all the
requirements California Government Code Section 65913.16(c), and, therefore, is a ministerial project
pursuant to State CEQA Guidelines Section 15268. Therefore, no further review under CEQA is required.
COMMUNITY ENGAGEMENT
On Thursday, May 14, 2026, Wakeland Housing and Development Corporation (Wakeland) walked door-to-
door within 500 feet of the Project site. They met with neighbors and provided a one-page overview of the
Project, reference Attachment 1, and notified them of the funding request being considered by the Housing
Authority and City Council. They also provided contact information for residents to follow up with any
questions or concerns. The focus of the effort was primarily informational in nature, although they welcomed
feedback and input from neighbors. This method has been deployed with other Wakeland projects to
establish early relationships with residents, particularly when a project will not go through other
discretionary actions.
On May 19, 2026, City Council considered the approval of funding under Item 8.2. Staff provided a
presentation which provided a conceptual rendering and site plan, reference Attachment 2, and further
described that the Project is eligible for streamlined ministerial approvals under Senate Bill 4 (SB4),
Affordable Housing on Faith Lands Act, therefore the loan approvals would be the only discretionary item
related to the Project, and without the loan approval the Project may still move forward ministerially.
Several residents were in attendance that evening, and three households voiced concerns about soil and
drainage, privacy, and parking configuration on the preliminary site design. In addition, written
communication, Attachment 3 was provided.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
On March 25, 2026, the Housing and Homeless Advisory Commission voted 3-0 to recommend that City
Council adopt the proposed funding action.
DISCUSSION
Notice of Funding Availability (NOFA)
The City and Housing Authority have a cumulative total of $4,000,000, less $25,000 for administrative
expenses, available to issue to a project, of which $3,000,000 belongs to the Authority’s Low- and Moderate-
Income Housing Asset (“Low-Mod”) fund, which is a legacy of the redevelopment era in Chula Vista. Low-
Mod funds accumulate from repayments of existing loans made to affordable projects. Under state
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redevelopment law, when the Low-Mod fund balance exceeds a certain amount, a portion of it must be
recommitted to new housing developments. The $3,000,000 must be committed by the end of the current
fiscal year (June 30, 2026).
The remaining $1,000,000 comes from the City’s Local Housing Trust Fund (LHTF), a fund established in
2024 to take advantage of a state matching grant program of the same name. The City deposited $500,000 to
the LHTF from its inclusionary housing fund. On August 27, 2025, the City was awarded a matching grant of
$500,000 by the California Department of Housing and Community Development (HCD). The $500,000
includes $25,000 that the City can spend on staff time and other eligible expenses associated with
administering the funds.
The City and Housing Authority NOFA opened on November 7, 2025. Submittals were due January 15, 2026,
giving applicants over two (2) months to identify sites and prepare materials. Two (2) submittals were
received: one (1) from Wakeland for a 68-unit project at 545 E. Naples Street (the “Project”), which is being
recommended for funding, and one (1) from Eden Housing, Inc. (Eden) for a 101-unit affordable project to
be located at 750 E Street. In-person presentations and interviews with the applicants were held on February
5, 2026. A panel comprised of staff members from the City’s Housing and Homeless Services and Finance
Departments reviewed the submittals and presentations.
To be considered valid, submittals had to meet a set of threshold criteria for consideration. These criteria
included basic requirements, such as that the applications be complete, meet minimum affordability
requirements, and that the applicants owned or were under contract to acquire the proposed location.
Projects that met the threshold criteria were then scored according to various metrics, which broadly
encompassed the following factors:
Number of affordable units and depth of affordability;
Locational factors (school quality, distance to grocery stores and other amenities, etc.);
Readiness for development, including the level of approvals needed for planning entitlements and
competitiveness for other funding sources to complete project financing; and
Developer experience and overall submittal quality.
The Project
The Project is located on a site owned by the Park Hill Methodist Church, currently being used as a baseball
field. It is directly across the street from Greg Rogers Elementary School and Greg Rogers Park, and less than
a half mile to Sunbow Park, as depicted in Figure 1. It is located in Council District 4 (it should be noted, the
Project also borders Districts 2 and 3) between the I-805 freeway and Telegraph Canyon Road. It is one block
away from a bus stop, Route 704, whose route travels from the Sharp Hospital and medical offices in Sunbow
through downtown Chula Vista to the E Street Trolley Station.
The proposed project is 68 units, with 67 restricted affordable units and one (1) exempt manager’s unit.
There will be a range of unit sizes, from studios to 1, 2, and 3-bedrooms. All units will serve low-income
families, with no special needs’ populations currently designated. The preliminary design concept shows 73
parking spaces (one space per household, plus additional spaces for staff, guests, and ADA stalls).
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Because the property is owned by a faith-based institution, it qualifies for streamlined approvals under a
state law known as SB4 (California Government Code Section 65913.16). It would also qualify for a density
bonus under State Density Bonus Law, which allows for modification of certain development standards.
The proposed unit mix, subject to change, is provided in Table 1.
Table 1: Proposed Affordability of Unit Mix
Bedroom Type Number of Units Income Category (% of Area
Median Income, or AMI)
Studio 3 30%
Studio 1 50%
Studio 9 60%
1 Bedroom 6 30%
1 Bedroom 2 50%
1 Bedroom 8 60%
2 Bedrooms 6 30%
2 Bedrooms 2 50%
2 Bedrooms 11 60%
3 Bedrooms 6 30%
Figure 1: Location Map
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Bedroom Type Number of Units Income Category (% of Area
Median Income, or AMI)
3 Bedrooms 2 50%
3 Bedrooms 11 60%
2 Bedroom 1 (Manager’s unit)
Total 68
Strengths of this proposal include the following:
The project is located in a well-resourced neighborhood that does not already have a concentration
of affordable housing. It would be a highly desirable location for working families with children, on a
site that under its current zoning would likely otherwise only be able to accommodate a much smaller
cluster of single-family homes.
The low-profile design is appropriate for the location, with care taken to provide buffers between
itself and the adjacent single-family neighborhood, (reference an initial conceptual elevation in
Figure 2, below). The building’s preliminary design orients the bulk of its massing towards Greg
Rogers Elementary School, away from adjacent homes.
The Project can obtain land use approvals by right, without need for design review or discretionary
hearings.
The Project is being designed with sustainable and energy-efficient design principles in in mind,
including all-electric design, solar panels, and drought-tolerant landscaping, in order to both promote
sustainability and reduce ongoing operating costs.
The City has worked with Wakeland on a number of previous developments and has a strong working
relationship with the organization. Despite Eden being a larger organization statewide, Wakeland
demonstrated a firmer understanding of the local land use requirements and overall regulatory and
financial context for its proposal, and staff has confidence in Wakeland’s local network of contractors
to deliver high-quality projects.
The City/Authority’s financial contribution would cover a little more than seven percent (7%) of the Project’s
estimated total development cost of $53,795,340. The Project will likely face challenges in assembling its
remaining financing, as both Low Income Housing Tax Credits, administered by the California Tax Credit
Allocation Committee (CTCAC), and other funding programs administered by the California Department of
Housing and Community Development (HCD) are expected to be highly competitive amidst a reduced state
budget in the coming years. The City/Authority funding commitment would include a deadline of two (2)
years, plus a one-year extension at the City Manager’s discretion, to secure all its funding and be prepared to
start construction; if the Project has not reached this milestone by the deadline, City Council and the
Authority would need to authorize additional extensions, or choose to reprogram the funds to another
project.
The Project’s attributes are still preliminary in nature and subject to revision. While staff will seek City
Council and Authority approval for major changes to the Project’s design, unit affordability mix, or other
features, the proposal will continue to be adjusted and refined as it moves forward.
Wakeland has received the feedback from neighbors regarding the Project, and has committed to working
closely with its architect to design the Project so as to address or mitigate their concerns. With regards to
drainage, the Project will require a grading permit, which will be reviewed and approved by civil engineers
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with the Land Development division of the City’s Development Services Department. The grading and
improvement work will comply with the City’s stormwater regulations and should resolve any current issues
at the site with regards to stormwater runoff or drainage. With regards to concerns about parking and
privacy, Wakeland is exploring a range of potential interventions to minimize light pollution, noise, parking
safety, and visual impacts of the development. These interventions may include the following:
trees, bushes, and other landscaping;
fences or other screening to promote privacy;
strategic window placement to minimize line-of-sight intrusion;
wheelstops and other barriers to prevent movement of vehicles outside the property lines;
parking configurations that minimize the noise and light impacts of moving cars.
Because the Project is still in the preliminary stages, Wakeland is still exploring all possible solutions with
its design team. City staff will engage with Wakeland on an ongoing basis to evaluate proposed mitigation
plans. Disbursement of the loan funds shall be made contingent upon the City Manager / Housing Authority
Director’s final approval of the Project’s design with regard to the aforementioned concerns.
Figure 2: Conceptual Elevation
Conclusion
Based upon community feedback and Council direction on May 19, 2026, an additional condition on the
disbursement of funds has been added to the approving Resolutions that the Housing Authority and City shall
not disburse loan funds until Wakeland has demonstrated to the satisfaction of the Housing Authority
Director/City Manager that the Project has satisfactorily mitigated privacy, parking, and drainage concerns
for properties abutting the Project.
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Since the meeting on May 19, 2026, Wakeland has been reviewing options to address these concerns such as
additional landscape, adjustments in window placement, and other ways to address community design
concerns.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council / Housing Authority members and has found no
property holdings within 1,000 feet of the boundaries of the property which is the subject of this action.
Consequently, this item does not present a disqualifying real property-related financial conflict of interest
under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political
Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been informed by any Housing Authority/City Council member,
of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no fiscal impact to the General Fund.
Chula Vista Housing Authority
The Authority’s Low-Mod funds for this action were appropriated via Housing Authority Resolution No.
2025-005, adopted on June 10, 2025.
City of Chula Vista
Acceptance of the $500,000 grant portion will come from HCD and will completely offset project costs. The
$500,000 local match was previously appropriated from the Housing Inclusionary fund on May 21, 2024, via
Resolution No. 2024-102.
ONGOING FISCAL IMPACT
Loan repayments will be deposited into their respective accounts and redeployed into new affordable
housing projects and programs. There are no other long-term fiscal impacts.
ATTACHMENTS
1. Park Hill UMC Fact Sheet – Preliminary Information
2. Park Hill UMC Conceptual Site Plan
3. Written Communication from 5/19/26 Council Meeting
Staff Contact: Brian Warwick, Housing Manager
Stacey Kurz, Director of Housing & Homeless Services
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Form Rev 9/30/2025
HA RESOLUTION NO. __________
RESOLUTION OF THE CHULA VISTA HOUSING
AUTHORITY APPROVING A LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATED ENTITY, TO ASSIST IN THE CONSTRUCTION
OF A 68-UNIT AFFORDABLE HOUSING DEVELOPMENT TO
BE LOCATED AT 545 EAST NAPLES STREET, AND
AUTHORIZING THE DIRECTOR TO NEGOTIATE AND
EXECUTE ALL DOCUMENTS RELATED TO THE LOAN IN A
FORM APPROVED BY LEGAL COUNSEL
WHEREAS, California Health and Safety Code (HSC) Sections 33334.2, 33334.6, and
34176.1 authorize and direct the Chula Vista Housing Authority (“Housing Authority”), in its
capacity as the Housing Successor as defined in HSC 34176, to expend funds from its Low and
Moderate Income Housing Asset Fund (“Housing Fund”) for the purposes of increasing,
improving; and preserving the community’s supply of low and moderate income housing available
at an affordable rent to persons and families of low or moderate income; and
WHEREAS, the Housing Fund as accumulated an Excess Surplus, or high unencumbered
Housing Fund balance, as defined and set forth in HSC 33334.12, and must commit approximately
$3.0 million in Excess Surplus funds to eligible projects or activities by the end of the 2025 -26
fiscal year; and
WHEREAS, on June 10, 2025, the Housing Authority adopted HA Resolution No. 2025-
005 appropriating $3.0 million for the production of affordable housing, with projects to be
selected through a competitive Notice of Funding Availability (NOFA); and
WHEREAS, the NOFA was issued on November 7, 2025, with a deadline of January 15,
2026, and two proposals were submitted for consideration; and
WHEREAS, a selection committee of City staff determined that a submittal by Wakeland
Housing and Development Corporation (Wakeland) for a 68-unit affordable project to be located
at 545 East Naples Street (the Project) scored highest on a range of factors including project
readiness, developer experience, and overall quality; and
WHEREAS, the Housing and Homeless Advisory Commission provided an advisory
recommendation that the Housing Authority approve the loan by a vote of 3-0 at its special meeting
on March 25, 2026; and
WHEREAS, Wakeland has conducted outreach to the neighboring community regarding
the Project, and has received feedback requesting that the Project be designed to adequately
mitigate drainage and stormwater runoff concerns, privacy and lighting concerns, and concerns
regarding the site’s parking configuration.
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Resolution No.
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Chula Vista Housing Authority, that it
does hereby authorize a loan from its Housing Fund to Wakeland, or an affiliated entity, in an
amount not to exceed three million dollars ($3,000,000) for the construction of the Project, to be
secured against the property and repaid from cash surplus in annual installments subject to the
conditions in this Resolution.
BE IT FURTHER RESOLVED by the Chula Vista Housing Authority, that it authorizes
the Director to negotiate and execute a loan agreement, regulatory agreement, and all associated
loan documents, and to carry out all other actions necessary for the development of the Project,
consistent with the Housing Authority’s standard documents, in the form approved by the City
Attorney in his capacity as the Housing Authority’s Legal Counsel, and at minimum, subject to
the following terms and conditions:
1. Prior to grading and building permit issuance, the Director of Development Services,
in consultation with the Building Official and the Civil Engineer supervising the Land
Development Division, shall advise the Housing Authority Director of the efforts to
mitigate privacy, parking, lighting, line of sight, drainage, and stormwater runoff
concerns for residential properties abutting the Project. The Housing Authority
Director’s written confirmation that the mitigation is satisfactory shall be required prior
to the disbursement of loan funds.
2. The Housing Authority shall not disburse loan funds until Wakeland has secured all
other necessary financing for the construction of the Project and taken all other steps
necessary to carry out the close of financing.
3. The funding commitment shall be valid for a period of two years from the date of this
resolution, with one optional extension period of one year at the sole discretion of the
Director (the Commitment Term). The commitment shall expire if the Project has not
secured all other necessary financing and taken all other steps necessary to commence
construction by the end of the Commitment Term, unless further extended with the
approval of the City Council.
4. The loan shall be evidenced by a promissory note in favor of the Housing Authority,
secured by a deed of trust recorded against the property.
5. The term of the loan and regulatory agreement shall be fifty-five (55) years.
6. Wakeland, or its affiliate or approved successors in interest, shall operate the Project
consistent with a regulatory agreement to be recorded against the Project and running
with the land, along with any other covenants imposed by other Project lenders.
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Resolution No.
Page 3
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services Legal Counsel
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Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A LOAN TO WAKELAND
HOUSING AND DEVELOPMENT CORPORATION, OR AN
AFFILIATED ENTITY, TO ASSIST IN THE CONSTRUCTION
OF A 68-UNIT AFFORDABLE HOUSING DEVELOPMENT TO
BE LOCATED AT 545 EAST NAPLES STREET,
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE ALL DOCUMENTS RELATED TO THE LOAN IN A
FORM APPROVED BY CITY ATTORNEY, AND
APPROPRIATING FUNDS THEREFOR
WHEREAS, in 2024, the City of Chula Vista (“City”) established a Local Housing Trust
Fund (LHTF) to assist with the construction, rehabilitation, and preservation of affordable housing,
and deposited $500,000 into the LHTF pursuant to Resolution No. 2024-102; and
WHEREAS, the City applied for a LHTF matching grant from the California Department
of Housing and Community Development (HCD) pursuant to Resolution No. 2024-163, adopted
on August 6, 2024, and was subsequently awarded a matching grant of $500,000 from HCD; and
WHEREAS, the combined LHTF local contribution and state match must be spent on the
production of affordable housing, less $25,000 for administrative costs; and
WHEREAS, the Chula Vista Housing Authority (“Housing Authority”) also had
$3,000,000 available for the production of affordable housing; and
WHEREAS, the City and the Housing Authority issued a combined Notice of Funding
Availability (NOFA) for the new construction of affordable housing; and
WHEREAS, the NOFA was issued on November 7, 2025, with a deadline of January 15,
2026, and two (2) proposals were submitted for consideration; and
WHEREAS, a selection committee of City staff determined that a submittal by Wakeland
Housing and Development Corporation (“Wakeland”) for a 68-unit affordable project to be located
at 545 East Naples Street (“Project”) scored highest on a range of factors including project
readiness, developer experience, and overall quality; and
WHEREAS, the Housing and Homeless Advisory Commission provided an advisory
recommendation that the Housing Authority approve the loan by a vote of 3-0 at its special meeting
on March 25, 2026; and
WHEREAS, Wakeland has conducted outreach to the neighboring community regarding
the Project, and has received feedback requesting that the Project be designed to adequately
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Resolution No.
Page 2
mitigate drainage and stormwater runoff concerns, privacy and lighting concerns, and concerns
regarding the site’s parking configuration.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it does hereby authorize a loan from its Housing Fund to Wakeland, or an affiliated entity, in
an amount not to exceed one million dollars ($1,000,000), less $25,000 for administrative costs,
for the construction of the Project, to be secured against the property and repaid from cash surplus
in annual installments.
BE IT FURTHER RESOLVED by the City Council of the Ci ty of Chula Vista, that it
amends the fiscal year 2025-26 budget by appropriating $475,000 to the other expenses category
and $25,000 to the supplies and services category of the Local Housing Trust Fund, Fund 313.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
authorizes the City Manager to negotiate and execute a loan agreement, regulatory agreement, and
all associated loan documents, and to carry out all other actions necessary for the development of
the Project, consistent with the City’s standard documents, in a form approved by the City
Attorney, and at minimum, subject to the following terms and conditions:
1. Prior to grading and building permit issuance, the Director of Development Services,
in consultation with the Building Official and the Civil Engineer supervising the Land
Development Division, shall advise the City Manager of the efforts to mitigate privacy,
parking, lighting, line of sight, drainage, and stormwater runoff concerns for residential
properties abutting the Project. The City Manager’s written confirmation that the
mitigation is satisfactory shall be required prior to the disbursement of loan funds.
2. The City shall not disburse loan funds until Wakeland has secured all necessary
financing for the construction of the Project and taken all other steps necessary to carry
out the close of financing.
3. The funding commitment shall be valid for a period of two (2) years from the date of
this resolution, with one optional extension of one year at the sole discretion of the City
Manager (the Commitment Term). The commitment shall expire if the Project has not
secured all other necessary financing and taken all other steps necessary to commence
construction by the end of the Commitment Term, unless further extended with the
approval of Council.
4. The loan shall be evidenced by a promissory note in favor of the City, secured by a
deed of trust recorded against the property.
5. The term of the loan and regulatory agreement shall be fifty-five (55) years.
6. Wakeland, or its affiliate or approved successors in interest, shall operate the Project
consistent with a regulatory agreement to be recorded against the Project and running
with the land, along with any other covenants imposed by other Project lenders.
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Resolution No.
Page 3
Presented by Approved as to form by
Stacey Kurz Marco A. Verdugo
Director of Housing and Homeless Services City Attorney
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FUTURE AFFORDABLE HOUSING COMMUNITY
Park Hill
545 E. Naples Street
Chula Vista, CA 91911
DEVELOPMENT TEAM
• Developer: Wakeland Housing
• Partner: Park Hill United Methodist
Church
• Architect: Studio E Architects
• Property Management: ConAm
Background
Park Hill will create 68 much-needed affordable homes beautifully-designed
to fi t seamlessly into the surrounding neighborhood. The development will be
built on the grounds of Park Hill United Methodist Church in partnership with
Wakeland Housing, a local nonprofi t with a strong record of creating successful
housing communities in Chula Vista.
Housing That Creates Stability for Working Families
• Optimizes unused Church land to create a safe, accessible, and welcoming
residential community where families can thrive.
• 68 apartments designed for low- income households earning 30% to 60% of the
Area Median Income (between $36,750 to $131,040 per year).
• Provides a mix of studios, one-, two-, and three-bedroom apartments to
accommodate working families of varying sizes, located close to jobs,
schools, transit, and everyday services.
Design & Amenities
• Building designed with graduated heights, generous setbacks, and landscaped
buffers to blend into the surrounding area and protect neighboring privacy.
• Onsite amenities for residents include a community room, kitchen, computer lab,
landscaped outdoor gathering areas, and a walking path for exercise.
Learn More
Stay informed by going to wakelandhdc.com/park-hill. You’ll fi nd more information
about the development, project updates, and upcoming milestones.
Architect’s Concept Rendering
Subject to Change
Project contact:Wakeland President Rebecca Louie / rlouie@wakelandhdc.com
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This document is wri en to display how the site plan for the new Park Hill Housing Community
as of 05/15/26 lacks considera on for the safety and privacy of exis ng proper es due to
placement of parking spaces and lack of privacy barriers.
Image 1
Image 1 shows the current site plan places parking facing directly towards the adjacent
proper es. 16 total trees are planned to provide privacy from 42 parking spaces facing exis ng
homes with no other means of mi ga ng light and noise. Proper es to the north of the parking
lot are also situated ~15 feet below the parking eleva on. This means that any light from those
parking spaces will point down, over the fences and into the yards and windows of these
homes.
Homes are recessed
~15’ below planned
parking eleva on
~35’ between
property line to the
north and parking
Written Communications - O'Steen
Item 8.2 - Rcvd. 5/19/2026
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Image 2
Image 2 is a picture taken from the backyard of one of the proper es bordering the north side
of the planned community. The red line indicates the es mated placement of the parking spots
based on the planned site map. This photo demonstrates that cars parked in these spots as
designed will emit light into the back yards of these homes. The current site plan has 5 small to
medium trees placed to provide privacy for the 14 parking spaces facing north. However, this
picture demonstrates that this does not adequately mi gate light from headlights.
Another concern for the safety of the residents at bo om of the structure is that the site plan
does not account for any cars that may roll beyond the parking space. If a vehicle were to drive
through the parking space, it would accelerate down this slope and into the exis ng homes.
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Image 3
Image 3 offers another perspec ve from the back yard of one of the proper es adjacent to the
north side of the proposed Park Hill housing community. The red line indicates the es mated
loca on of headlights based on the current site plan. Another con cern for homes to the north
of the property is that any overhead ligh ng planned for the parking lot will spill over into the
neighboring homes.
Addi onally, even with a setback of 89’, a 3-story apartment building will clearly have visibility
into the backyards and bedrooms of the exis ng homes to the north.
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Item 8.2 – Written Communications
Flores – Received 6/2/2026
June 2, 2026
Chula Vista City Council & Mayor
City Hall
276 Fourth Avenue
Chula Vista, CA
RE: Park Hill affordable housing funding – Please Approve!
Dear Mayor and City Councilmembers,
My name is Claudia Flores and I am resident of Los Vecinos an affordable
community here in Chula Vista that is owned and operated by Wakeland Housing.
I’m writing to share how affordable housing has made a difference in my life and
urge you to approve funding for the Park Hill affordable housing development that
Wakeland Housing proposes to build at 545 East Naples Street.
The problem we faced prior to moving to Los Vecinos was very expensive rents and
sacrificing time with my family to have one more job for extra income.
Since we have lived here, It has been a change for the better, because the lower cost
helps us in this economy and so I can pay for a course at school to prepare for a
better future while still being able to work and spend time with my family.
It also helps that we have resident services on site to help me with medical
applications, help for programs that benefit my family and provides us with services
such as backpacks in school season.
We like that there are different things to help us like the painting classes, the walk
that helps me when I'm stressed, plus the motivation that Isabel gives me is always
helpful.
It’s important to have affordable housing because there are many families that use
this help, so that they do not sacrifice so much time being away from their families
and be able like me, to get an education and provide a better future for our children.
We are very grateful to have this kind of aid.
From my experience with Wakeland, I believe the Park Hill affordable housing
development will be a welcome addition to the City of Chula Vista because it will
benefit both residents who live there and the wider community.
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Item 8.2 – Written Communications
Flores – Received 6/2/2026
First, it will improve the neighborhood by turning extra land owned by the Church into
an affordable housing community that will create stability and pathways to success
for working families like mine.
Second, it ensures this location will continue to serve members of our community
who may otherwise not be able to afford to live in this city that they love.
For these reasons, I urge you to approve funding for the Park Hill affordable housing
community.
Sincerely,
Claudia Flores
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May 30, 2026
Chula Vista City Council & Mayor
City Hall
276 Fourth Avenue
Chula Vista, CA
RE: Park Hill affordable housing funding – Please Approve!
Dear Mayor and City Councilmembers,
My name is Gabriela Sanchez and I am a resident of Lofts on Landis, an affordable community here in Chula
Vista that is owned and operated by Wakeland Housing.
I’m writing to share how affordable housing has made a difference in my life and urge you to approve funding for
the Park Hill affordable housing development that Wakeland Housing proposes to build at 545 East Naples Street.
Affordable housing was a relief and a lot of help in my life. I am a single mother working hard to pay bills, but rent
was taking my whole income. I was living in a one bathroom apartment that was full of mold. It was extremely
bad that we had to sleep in the living room because my son had asthma. The owners did not want to repair it but
I couldn’t move because the rent was higher in other places.
When I received the letter from the affordable housing, I was so thankful and happy because I knew that it was
going to be easier for me to pay rent. I got, 3 bedroom 2 bathroom apartment. My kids and I were so happy that
we visited the construction site almost every day until it was finished.
Since the day we moved to Landis everything was easier and happier. I could spend more time with my kids.
Each of us has our own room. It was like a dream come true.
I know that building more affordable housing is very important for our community. Rent in California is very
expensive and I am sure that like me, a lot of people are struggling with high rent. The rent takes a lot of your
income and living in affordable communities gives you the opportunity to accomplish more in your life. Whether it
be school, work or spending more time with your family, affordable housing is a blessing for a lot of families.
Thank you for the opportunity to have less stress and more time with my children.
From my experience with Wakeland, I believe the Park Hill affordable housing development will be a welcome
addition to the City of Chula Vista because it will benefit both residents who live there and the wider community.
First, it will improve the neighborhood by turning extra land owned by the Church into an affordable housing
community that will create stability and pathways to success for working families like mine.
Second, it ensures this location will continue to serve members of our community who may otherwise not be able
to afford to live in this city that they love.
For these reasons, I urge you to approve funding for the Park Hill affordable housing community.
Sincerely,
Gabriela Sanchez
Chula Vista, CA 91910
Item 8.2 - Written Communications
Sanchez - Received 6/2/2026
Page 749 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Item 8.2 – Written Communications
Calvario – Received 6/2/2026
June 2, 2026
Chula Vista City Council & Mayor
City Hall
276 Fourth Avenue
Chula Vista, CA
RE: Park Hill affordable housing funding – Please Approve!
Dear Mayor and City Councilmembers,
My name is Susana Calvario and I am resident of Lofts on Landis , an affordable
community here in Chula Vista that is owned and operated by Wakeland Housing.
I’m writing to share how affordable housing has made a difference in my life and
urge you to approve funding for the Park Hill affordable housing development that
Wakeland Housing proposes to build at 545 East Naples Street.
Desperation—the fear that I was going to end up homeless because rents were
so expensive and I couldn't afford to pay them.
The peace of mind that comes from having a roof over my head—and being able
to afford it—and being able to enjoy my children more.
I am able to enjoy the amenities of the apartments and the very beautiful
surrounding area.
My children were able to enjoy a safe and lovely environment, including the
schools and parks.
I really love this community; I enjoy taking advantage of the Resident Services—I
do arts and crafts, and they bring in classes for us. The positive atmosphere
helps me relax and feel at peace.
I am grateful for the well-being of other families who are going through the same
things I went through back then—difficult times and extremely high rents.
From my experience with Wakeland, I believe the Park Hill affordable housing
development will be a welcome addition to the City of Chula Vista because it will
benefit both residents who live there and the wider community.
First, it will improve the neighborhood by turning extra land owned by the Church into
an affordable housing community that will create stability and pathways to success
for working families like mine.
Second, it ensures this location will continue to serve members of our community
who may otherwise not be able to afford to live in this city that they love.
Page 750 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Item 8.2 – Written Communications
Calvario – Received 6/2/2026
For these reasons, I urge you to approve funding for the Park Hill affordable housing
community.
Sincerely,
Susana Calvario
Chula vista Ca.91910
Page 751 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Page 752 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Page 753 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Empower individuals & families ●Build community resilience ●Promote housing opportunities ●Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 8.2
Funding Recommendation: Park Hill UMC
Page 754 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Notice of Funding Availability (NOFA)
•$3M in Low-Mod Funds
•$1M Local Housing Trust Funds
(less $25,000 for staff admin costs)
•1975 notified through Planet Bids
•73 downloaded bid package
Page 755 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Park Hill UMC
•67 units, plus one manager’s unit
•30%-60% of Area Median Income
•1, 2, and 3-bedroom units
Page 756 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Park Hill UMC Location
Page 757 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Community Outreach
•Drainage – Grading Permit, Stormwater Regulations
•Parking – Design choices, physical barriers
•Privacy – Landscaping, line of sight consideration
Page 758 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Addressing Council 5/19 Comments
Prior to grading and building permit issuance, the Director of
Development Services, in consultation with the Building Official
and the Civil Engineer supervising the Land Development Division,
shall advise the Housing Authority Director/City Manager of the
efforts to mitigate privacy, parking, lighting, line of sight, drainage,
and stormwater runoff concerns for residential properties abutting
the Project.
The Housing Authority Director/City Manager’s written
confirmation that the mitigation is satisfactory shall be required
prior to the disbursement of loan funds.
Page 759 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Review Process
City Manager /
Housing
Authority
Director
Director of
Development
Services
Building Official
Civil Engineer
(Land
Development)
Page 760 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda
Recommendation
City Council & Housing Authority approve a funding
commitment of up to $4,000,000 to the Park Hill UMC
affordable housing project
Page 761 of 761
City of Chula Vista - City Council
June 2, 2026 Post City Council/Housing Authority Agenda