HomeMy WebLinkAboutReso 2004-130
RESOLUTION NO. 2004-130
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A SECOND AMENDMENT TO
THE ACQUISITIONfFINANCING AGREEMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 06-1
WHEREAS, the City Council of the City of Chula Vista, California, pursuant to the
provisions of the Mello-Roos Community Facilities Act of 1982, has undertaken proceedings to
form and has formed a Community Facilities District for the purpose of financing the acquisition
of certain works of improvement, together with appurtenances, such special assessment district
known and designated as Community Facilities District No. 06-1 (Eastlake - Woods, Vistas and
Land Swap) (the "Community Facilities District"); and
WHEREAS, the City Council did previously approve the form of an
Acquisition/Financing Agreement (the "Acquisition Agreement" by and between the City of
Chula Vista and the Eastlake Company, LLC, (the "Developer") to establish the terms and
conditions upon which the improvements (as derIDed in the "Amended AcquisitionlFinancing
Agreement") would be acquired by the City; and
WHEREAS, the City Council also previously approved the First Amendment to
Acquisition Agreement (the "First Amendment") by and between the City and the Developer
provides that the landscaping associated with roadway improvements shall be designated as
separate improvements to enable the payment of the base increment of the roadway
improvements closer in time to the actual completion of the construction of such improvements;
WHEREAS, the Acquisition Agreement contemplates that the purchase price of an
improvement can be established at the time the payment of the base increment for an
improvement is made; and
WHEREAS, notwithstanding the provisions of the Acquisition Agreement, the Developer
has found that the purchase price of an improvement is frequently not known until the final
invoice related to the improvement is received and paid by the Developer resulting in substantial
delays in the payment of the base increment for such improvements; and
WHEREAS, the Developer has requested that the Acquisition Agreement be amended (a)
to establish the purchase price at the time the retained increment is paid and (b) to allow the base
increment to be based on 75% of the audited, eligible costs to the date of Developer's application
for payment of the base increment to avoid delays in the payment of the base Increment for an
improvement; and
WHEREAS, the Acquisition Agreement provides that sewer associated with a roadway
improvement is a component of such an improvement; and
WHEREAS, such sewer and appurtenances along Eastlake Parkway are eligible
components of an improvement; and
WHEREAS, the Developer has requested that the AcquisitionlFinancing Agreement be
amended (a) to establish the sewer along Eastlake Parkway as a separate improvement, (b) to
increase the estimated cost of the sewer along Eastlake Parkway based on design constraints, and
Resolution 2004-130
Page 2
(c) to enable the payment of the base increment of the sewer improvement closer in time to the
actual completion of the construction of such improvement; and
WHEREAS, in addition to the foregoing, traffic signals, collectively, are designated in
the Acquisition Agreement as an improvement; and
WHEREAS, individual traffic signals are frequently completed as individual
improvements or with a roadway improvement over an extended period of time resulting in
lengthy delays in the payment of the purchase price for the traffic signals from the time the initial
traffic signal is installed until the last traffic signal is installed; and
WHEREAS, the Developer has requested that the Acquisition Agreement be amended (a)
to establish each traffic signal as a separate improvement and (b) to enable the payment of the
base increment for each traffic signal closer in time to the actual completion of such
improvement; and
WHEREAS, the City is willing to agree to further amend the Acquisition Agreement to
avoid a financial hardship to the Developer by (I) unnecessarily delaying the payment of the
base increment for improvements based on the purchase price; (2) unnecessarily delaying
payment of the base increment for the sewer along Eastlake Parkway; and (3) unnecessarily
delaying the payment of the base increment for each individual traffic signal until all traffic
signals are substantially completed; and
WHEREAS, the City is willing to agree to such amendment of the Acquisition
Agreement for such purpose and to otherwise clarify the description of and cost estimate for the
improvements; and
WHEREAS, to accomplish the foregoing purposes there had been provided to the City
Council for its consideration the form of a Second Amendment to AcquisitionlFinancing
Agreement (the "Second Amendment").
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Second Amendment hereby is approved in the form submitted.
SECTION 3. The Mayor is hereby authorized to execute the second amendment on behalf of
the City.
Prepared by
Approved as to form by
JOC~?J¡
Gener rvicesDirector
~ rvLt'k~/
Ann oore
City Attorney
Resolution 2004-130
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 27th day of April, 2004, by the following vote:
AYES: Councilmembers:
NAYS: Councilmembers:
ABSENT: Councilmembers:
Davis, McCarm, Rindone, Salas and Padilla
None
None
ATTEST:
~~~~
Susan Bigelow, CMC, City lerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2004-130 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 27th day of April, 2004.
Executed this 27th day of April, 2004.
~.l ~~~
Susan Bigelow, CMC, City lerk