HomeMy WebLinkAboutAgenda Packet 2004/06/15
AGENDA
I declare under penalty of perjury that I am
employed by the City of Chula Vista in the
Office of the City Clerk and that I posted this
document on the bulletin board according to
Brown Act requirements.
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Dated Sig~~6 Y.M.
June 15, 2004
CALL TO ORDER
ROLL CALL:
Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla
PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE
SPECIAL ORDERS OF THE DAY
· PRESENTATION BY DAVID MCCLURG, PRESIDENT OF THE DOWNTOWN
BUSINESS ASSOCIATION, OF THE CAL-ED AWARD TO THE CITY COUNCIL
FOR THE DOWNTOWN MONUMENT SIGN
CONSENT CALENDAR
(Items 1 through 21)
The Council will enact the Consent Calendar staff recommendations by one
motion, without discussion, unless a Councilmember, a member of the public, or
City staff requests that an item be removed for discussion. If you wish to speak on
one of these items, please fill out a "Request to Speak" form (available in the
lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the
Consent Calendar will be discussed after Action Items.
1. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AMENDING THE CHULA VISTA MUNICIPAL CODE SECTION 13.14.140
RELATING TO THE SEWER SERVICE CHARGE VARIANCES BY ADDING AN
APPEAL PROCESS FOR RESIDENTIAL CUSTOMERS (SECOND READING)
On July 22, 2003, City Council approved an amendment to the Master Fee Schedule by
restructuring the sewer service rates and approving a four-year sewer service rate
schedule. Subsequently, on February 17,2004, to address some of the concerns raised by
citizens regarding the new structure, Council authorized staff to retain a new consultant,
Black & Veatch to update the Wastewater User and Rate Restructuring Study, which was
prepared by PBS&J. This ordinance was introduced on June 8, 2004. (Director of
General Services, City Engineer)
Staff recommendation: Council adopt the ordinance.
2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ACCEPTING BIDS AND AWARDING CONTRACT FOR ROHR PARK PARKING
LOT LIGHTING (PROJECT PR252) TO A.B. HASHMI, INC., IN THE AMOUNT OF
$114,995 AND AUTHORIZING THE MAYOR TO EXECUTE SAID CONTRACT
On May 25, 2004, sealed bids were received for this project. The work for the project
includes material and labor to install parking lot lights and walkway lights, replacement
of existing 200 AMP and service panel, provision and installation of new time clock per
contract specifications at Rohr Park. (Director of General Services)
Staff recommendation: Council adopt the resolution.
CITY COUNCIL AGENDA
June 15,2004 6:00 p.m.
Council Chambers
Public Services Building
276 Fourth Avenue, Chula Vista
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CllY OF
CHUlA VISTA
City Council
Patty Davis
John McCann
Jerry R. Rindone
Mary Salas
Stephen C. Padilla, Mayor
City Manager
David D. Rowlands, Jr.
City Attorney
Ann Moore
City Clerk
Susan Bigelow
**********
The City Council meets regularly on the first calendar Tuesday at 4:00 p.m.
and on the second, third and fourth calendar Tuesdays at 6:00 p.m.
Regular meetings may be viewed at 7:00 p.m. on Wednesdays on
Cox Cable Channel 24 or Chula Vista Cable Channel 68.
Agendas are available on the City's website at:
www.chulavistaca.gov
**********
AGENDA
June 15, 2004
6:00 P.M.
CALL TO ORDER
ROLL CALL:
Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla
PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE
SPECIAL ORDERS OF THE DAY
.
PRESENTATION BY DAVID MCCLURG, PRESIDENT OF THE DOWNTOWN
BUSINESS ASSOCIATION, OF THE CAL-ED AWARD TO THE CITY COUNCIL
FOR THE DOWNTOWN MONUMENT SIGN
CONSENT CALENDAR
(Items I through 21)
The Council will enact the Consent Calendar staff recommendations by one
motion, without discussion, unless a Councilmember, a member of the public, or
City staff requests that an item be removed for discussion. If you wish to speak on
one of these items, please fill out a "Request to Speak" form (available in the
lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the
Consent Calendar will be discussed after Action Items.
1.
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AMENDING THE CHULA VISTA MUNICIPAL CODE SECTION 13.14.140
RELATING TO THE SEWER SERVICE CHARGE VARIANCES BY ADDING AN
APPEAL PROCESS FOR RESIDENTIAL CUSTOMERS (SECOND READING)
On July 22, 2003, City Council approved an amendment to the Master Fee Schedule by
restructuring the sewer service rates and approving a four-year sewer service rate
schedule. Subsequently, on February 17,2004, to address some of the concerns raised by
citizens regarding the new structure, Council authorized staff to retain a new consultant,
Black & Veatch to update the Wastewater User and Rate Restructuring Study, which was
prepared by PBS&J. This ordinance was introduced on June 8, 2004. (Director of
General Services, City Engineer)
Staff recommendation: Council adopt the ordinance.
2.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ACCEPTING BIDS AND AWARDING CONTRACT FOR ROHR PARK PARKING
LOT LIGHTING (pROJECT PR252) TO A.B. HASHMI, INC., IN THE AMOUNT OF
$114,995 AND AUTHORIZING THE MAYOR TO EXECUTE SAID CONTRACT
~
On May 25, 2004, sealed bids were received for this project. The work for the project
includes material and labor to install parking lot lights and walkway lights, replacement
of existing 200 AMP and service panel, provision and installation of new time clock per
contract specifications at Rohr Park. (Director of General Services)
Staff recommendation: Council adopt the resolution.
3.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROPRIATING FUNDS FROM THE TRAFFIC SIGNAL FUND TO REIMBURSE
DEVELOPER FOR COSTS ASSOCIATED WITH TRAFFIC SIGNAL RELOCATION
AT FOURTH AVENUE AND C STREET (4/5THS VOTE REQUIRED)
As part of planned redevelopment at the southeast comer of Fourth Avenue and C Street,
the existing traffic signal has been relocated by the developer at a cost of $78,299.
Adoption of the resolution will appropriate funds to reimburse the developer for those
costs from available Traffic Signal funds. (Director of General Services, City Engineer)
Staff recommendation: Council adopt the resolution.
4.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING CHANGE ORDERS REQUESTED BY THE EASTLAKE COMPANY,
LLC, FOR OTAY LAKES ROAD AND OLYMPIC PARKWAY
Eastlake Company completed the construction of two projects to widen Otay Lakes Road
and one project to complete Olympic Parkway and submitted payment requests for
reimbursement from Community Facilities District No. 06-1. Each payment request
includes change orders that require City Council approval prior to reimbursement from
bond proceeds and receipt of Transportation Development Impact Fee (TDIF) credit.
(Director of General Services, City Engineer)
Staff recommendation: Council adopt the resolution.
5.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 2004/2005
SPREAD OF ASSESSMENTS FOR OPEN SPACE DISTRICTS I THROUGH 9, 15,
17, 18, 20, 23, 24, 26, 31 AND 33, BAY BOULEVARD AND TOWN CENTRE
MAINTENANCE DISTRICTS; DECLARING THE INTENTION TO LEVY AND
COLLECT ASSESSMENTS; AND SETTING A PUBLIC HEARING REGARDING
THESE ASSESSMENTS
The City administers and maintains twenty-four open space districts that have been
established over the last thirty years. The districts provide a financing mechanism to
maintain the public open space areas associated with each particular development. The
levy of an annual assessment for Fiscal Year 2004/2005 will enable the City to collect
sufficient funds to provide these ongoing services. (Director of General Services, City
Engineer)
Staff recommendation: Council adopt the resolution.
6.
RESOLUTION OF THE CITY COUNCIL-OF THE CITY OF CHULA VISTA
APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 2004/2005
SPREAD OF ASSESSMENTS FOR OPEN SPACE DISTRICT 10; DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THE ASSESSMENT
Page 2 - Council Agenda
June 15,2004
This is one of four companion agenda items to the primary open space assessments
agenda item, which provides all general background information and details regarding the
proposed open space districts assessments for Fiscal Year 2004/2005. This item includes
information specific to Open Space District 10. (Director of General Services, City
Engineer)
Staff recommendation: Council adopt the resolution.
7.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 2004/2005
SPREAD OF ASSESSMENTS FOR OPEN SPACE DISTRICT 11; DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THE ASSESSMENT
This is one of four companion agenda items to the primary open space assessments
agenda item, which provides all general background information and details regarding the
proposed open space districts assessments for Fiscal Year 2004/2005. This item includes
information specific to Open Space District 11. (Director of General Services, City
Engineer)
Staff recommendation: Council adopt the resolution.
8.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 2004/2005
SPREAD OF ASSESSMENTS FOR OPEN SPACE DISTRICT 14, DECLARING THE
INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THE ASSESSMENT
This is one of four companion agenda iterns to the primary open space assessments
agenda item, which provides all general background information and details regarding the
proposed open space districts assessments for Fiscal Year 2004/2005. This item includes
information specific to Open Space District 14. (Director of General Services, City
Engineer)
Staffrecommendation: Council adopt the resolution.
9.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 2004/2005
SPREAD OF ASSESSMENTS FOR EASTLAKE MAINTENANCE DISTRICT I,
DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS; AND
SETTING A PUBLIC HEARING REGARDING THE ASSESSMENT
This is one of four companion agenda items to the primary open space assessments
agenda item, which provides all general background information and detail on the
proposed open space district assessments for F.iscal Year 2004/2005. This item includes
information specific to Eastlake Maintenance District No I. (Director of General
Services, City Engineer)
Staff recommendation: Council adopt the resolution.
Page 3 - Council Agenda
June 15,2004
10.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE AFFORDABLE HOUSING REGULATORY AGREEMENT
RELATED TO ROLLING HILLS RANCH BETWEEN THE CITY AND SHEA
HOMES AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT
Adoption of the resolution approves an affordable housing regulatory agreement with
Shea Homes for the development of 32 for-sale units affordable to first-time, low-income
buyers. (Director of Community Development)
Staffrecommendation: Council adopt the resolution.
II A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE FINAL MAP OF CHULA VISTA TRACT NO. 92-02, ROLLING
HILLS RANCH NEIGHBORHOOD 4A - SEDONA; APPROVING THE
SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF
IMPROVEMENTS; AND APPROVING AN ASSOCIATED SUPPLEMENTAL
SUBDIVISION IMPROVEMENT AGREEMENT
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ORDERING THE SUMMARY VACATION OF THE IRREVOCABLE OFFER OF
DEDICATION OF PARCEL "3" FOR PUBLIC OPEN SPACE AND OTHER PUBLIC
PURPOSES PER PARCEL MAP NO. 18595
Adoption of the resolutions approves the final map for the Sedona project, the associated
improvement agreements for the project (Neighborhood 4A of Rolling HiJls Ranch), and
approves the summary vacation of the Irrevocable Offer of Dedication of Parcel "3" for
public open space and other public purposes. (Director of General Services, City
Engineer)
Staff recommendation: Council adopt the resolutions.
12.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE AFFORDABLE HOUSING REGULATORY AGREEMENT
RELATED TO SAN MIGUEL RANCH BETWEEN THE CITY AND TRIMARK
PACIFIC-MAR BRISA, LLC, AND AUTHORIZING THE MAYOR TO EXECUTE
THE AGREEMENT
Adoption of the resolution approves an affordable housing regulatory agreement with
Trimark Pacific-Mar Brisa, LLC, for the development of 70 for-sale units affordable to
first-time, low-income buyers and 45 for-sale units affordable to moderate-income
buyers. (Director of Community Development)
Staff recommendation: Council adopt the resolution.
Page 4 - Council Agenda
June 15,2004
13.
14.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROPRIATING $300,000 FROM THE AVAILABLE BALANCE OF THE
GENERAL FUND, ESTABLISHING A NEW CAPITAL IMPROVEMENT
PROGRAM PROJECT NO. GG-186 FOR THE REMOVAL OF THE
UNDERGROUND FUEL STORAGE TANKS AND CONTAMINATION
REMEDIATION AND RELATED WORK AT 707 F STREET, AWARDING A
CONTRACT FOR $26,000 TO JENAL ENGINEERING FOR TANK REMOVAL,
AND AWARDING A CONTRACT FOR $48,000 TO SUB-SURFACE WASTE
MANAGEMENT, INC., FOR THE PHASE II ENVIRONMENTAL ASSESSMENT
INVESTIGATION (4/5THS VOTE REQUIRED)
The fuel island and the two underground fuel tanks at 707 F Street do not meet state
regulations as defined in SB989 and must be removed. Adoption of the resolution creates
the capital improvement program project to accomplish this work and appropriates funds
to remove the fuel island and tanks and remediate contaminated soil. The City stopped
using this fuel island in January of this year. (Director of Public Works)
Staff recommendation: Council adopt the resolution.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROPRIATING $300,000 FROM THE AVAILABLE BALANCE OF THE
GENERAL FUND AND ESTABLISHING A NEW CAPITAL IMPROVEMENT
PROGRAM PROJECT NO. GG-187 FOR THE REPLACEMENT OF TWO
UNDERGROUND FUEL STORAGE TANKS AND THE REPLACEMENT OF
VARIOUS UNDERGROUND PIPING AT THE JOHN LIPPITT PUBLIC WORKS
CENTER (4/5THS VOTE REQUIRED)
One of underground fuel storage tanks located at the John Lippitt Public Works Center
does not meet state regulations as defined in SB989 and must be removed. A second tank
that was installed in 1988 by SDG&E will be replaced as well. After the Public Works
Center was constructed, state regulations regarding underground fuel tanks were revised,
and as a result, the underground piping must also be replaced. Adoption of the resolution
creates the capital improvement program project to accomplish this work and
appropriates the necessary funds. (Director of Public Works)
Staff recommendation: Council adopt the resolution.
15 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OF
INTENTION TO APPROVE AN AMENDMENT TO THE SAFETY AND
MISCELLANEOUS CONTRACTS BETWEEN THE BOARD OF ADMINISTRATION
OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY
COUNCIL OF THE CITY OF CHULA VISTA TO PROVIDE SECTION 20434, ANY
. OFFICERS OR EMPLOYEES OF A FIRE DEPARTMENT EMPLOYED TO
PERFORM DUTIES OF FIREFIGHTING, FIRE PREVENTION, FIRE TRAINING,
HAZARDOUS MATERIALS, EMERGENCY MEDICAL SERVICES, OR FIRE OR
ARSON INVESTIGATION SERVICES RECLASSIFIED AS "LOCAL FIRE
FIGHTERS," AND DIRECTING STAFF TO ADJUST THE 2004/2005 PROPOSED
BUDGET ACCORDINGLY
Page 5 - Council Agenda
June 15,2004
B. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE BOARD
OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE CITY COUNCIL OF THE CITY OF CHULA VISTA TO PROVIDE
SECTION 20434, ANY OFFICERS OR EMPLOYEES OF A FIRE DEPARTMENT
EMPLOYED TO PERFORM DUTIES OF FIREFIGHTING, FIRE PREVENTION,
FIRE TRAINING, HAZARDOUS MATERIALS, EMERGENCY MEDICAL
SERVICES, OR FIRE OR ARSON INVESTIGATION SERVICES RECLASSIFIED AS
"LOCAL FIRE FIGHTERS"
The City is amending both the Miscellaneous and Safety contracts between the Board of
Administration of the California Public Employees' Retirement Board and the City of
Chula Vista to expand the definition of "Local Fire Fighters" to include the employees of
the Fire Prevention Bureau who are involved in prevention and fire and arson
investigation services. (Director of Human Resources)
Staff recommendation: Council adopt the resolution and place the ordinance on first
reading.
16.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE THIRD AMENDMENT TO THE AGREEMENT BETWEEN THE
CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT FOR
POLICE, FIRE AND EMERGENCY MEDICAL SERVICES
Adoption of the resolution approves a three-year extension to the agreement between the
City of Chula Vista and the San Diego Unified Port District to provide police, fire and
emergency medical services to the San Diego Unified Port districts on Port District lands
adjacent to the City ofChula Vista. (Chief of Police)
Staffrecommendation: Council adopt the resolution.
17.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE MEMORANDUM OF UNDERSTANDING (MOD) BETWEEN
THE CITY OF CHULA VISTA AND THE CHULA VISTA ELEMENTARY SCHOOL
DISTRICT REGARDING JOINT OPERATION OF THE DYNAMIC AFTER SCHOOL
HOURS (DASH) AFTER SCHOOL RECREATIONAL PROGRAM, AND THE SAFE
TIME FOR RECREATION, ENRICHMENT, AND TUTORING FOR CHILDREN
(STRETCH) EXTENDED SCHOOL DAY EDUCATIONAL PROGRAM; AND
AUTHORIZING THE MAYOR TO EXECUTE THE MOU
The current MOU between the City and the Chula Vista Elementary School District, in
effect until June 30, 2004, authorizes the operation of two after school programs at
elementary school sites. The STRETCH Program, with its emphasis on literacy and arts
enrichment, is currently offered at seven district schools. The existing MOU also
authorizes the operation of a structured sports and recreation program called DASH
(Dynamic After School Hours), at 21 district schools. (Assistant City Manager Palmer)
Staff recommendation: Council adopt the resolution.
Page 6 - Council Agenda
June 15,2004
18.
19.
20.
21.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE CITY OF CHULA
VISTA FOR FISCAL YEAR 2004/2005
Article XIIIB of the California Constitution, approved by the voters in 1979, and
commonly referred to as the Gann Initiative, requires each local government to establish
an appropriations limit by resolution. The purpose of the limit is to restrict spending of
certain types of revenues to a level predicated using a base-year amount, and increased
annually by an inflation factor. (Director of Finance)
Staff recommendation: Council adopt the resolution.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING AN ADJUSTMENT OF THE MAYOR AND CITY COUNCIL
BENEFITS PACKAGES AND DIRECTING STAFF TO ADJUST THE FISCAL YEAR
2005 PROPOSED BUDGET ACCORDINGLY
The proposed resolution directs staff to adjust the car allowance for the Council by $450
per month. In addition, it directs staff to increase the expense account for the Mayor by
$400 per month and the Council by $200 per month, and increases the flexible benefit
amounts for the Council to be consistent with the Executive Flex Plan. Adoption of the
resolution approves these benefit adjustments. (Director of Human Resources)
Staff recommendation: Council adopt the resolution.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING A SALARY EQUITY ADJUSTMENT FOR THE CITY ATTORNEY,
CITY CLERK AND CITY MANAGER AND DIRECTING STAFF TO ADJUST THE
FISCAL YEAR 2005 PROPOSED BUDGET ACCORDINGLY
The City recently surveyed the current salaries of the City Attorney, City Clerk and City
Manager and found they have fallen below their peer agencies throughout the State and
should be adjusted at this time to bring them up to the recommended amount. Adoption
ofthe resolution approves the salary equity adjustments. (Director of Human Resources)
Staff recommendation: Council adopt the resolution.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
RATIFYING AND APPROVING A $50,000 "PROPOSITION 12" GRANT
APPLICATION SUBMITTED TO THE CALIFORNIA DEPARTMENT OF
FORESTRY AND FIRE PROTECTION TO FUND THE PLANTING OF 460 TREES
IN THE CITY
On April 30, City staff submitted a grant application to the California Department of
Forestry and Fire Protection (CDF) for $50,000 to fund a project to plant 460 trees in
City public "right-of-way" during calendar years 2005 and 2006. The goal of the project
is to reduce the impact of urban heat island effect on the City. Adoption of the resolution
approves the application for the grant. (Director of Environmental Services)
Staff recommendation: Council adopt the resolution.
Page 7 - Council Agenda
June 15,2004
ORAL COMMUNICATIONS
Persons speaking during Oral Communications may address the Council on any
subject matter within the Council's jurisdiction that is not listed as an item on the
agenda. State law generally prohibits the Council from taking action on any issue
not included on the agenda, but, if appropriate, the Council may schedule the
topic for future discussion or refer the matter to staff Comments are limited to
three minutes.
PUBLIC HEARINGS
The following items have been advertised as public hearings as required by law.
If you wish to speak on any item, please fill out a "Request to. Speak" form
(available in the lobby) and submit it to the City Clerk prior to the meeting.
22.
CONSIDERATION OF ADOPTION OF AN URGENCY ORDINANCE AMENDING
SECTION 19.48.020 OF THE CHULA VISTA MUNICIPAL CODE, ELIMINATING
THE REQUIREMENT FOR UNIFIED CONTROL OF PROPERTY WITHIN THE P-C
ZONE
This report addresses the deletion of a provision from the Municipal Code that currently
requires unified control of all land within a P-C Zone. It is offered as an urgency
measure due to matters of public health, safety and welfare associated with the timely
delivery of a needed public facility. (Director of Planning and Building)
Staff recommendation: Council conduct the public hearing and adopt the following
urgency ordinance:
URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING SECTION 19.48.020 OF THE CHULA VISTA
MUNICIPAL CODE, DELETING PARAGRAPH 'B' TO ELIMINATE THE
REQUIREMENT FOR UNIFIED CONTROL OF PROPERTY WITHIN THE P-
CZONE
ACTION ITEMS
The items listed in this section of the agenda will be considered individually by
the Council, and are expected to elicit discussion and deliberation. If you wish to
speak on any item, please fill out a "Request to Speak" form (available in the
lobby) and submit it to the City Clerk prior to the meeting.
23.
CONSIDERATION OF A REPORT REGARDING THE PROPOSED GROWTH
MANAGEMENT WORK PROGRAM
On May 27, 2004, the City's growth management consultant, Walter Kieser, from
Economic and Planning Systems, Inc., presented to Council a White Paper with options
regarding the City's growth management program. Based on Council's response, a
proposed work program has been prepared. (Director of Planning and Building)
Staff recommendation: Council accept the report and provide gnidance on the proposed
work program.
Page 8 - Council Agenda
June 15,2004
24.
CONSIDERATION OF ADOPTION OF AN ORDINANCE ESTABLISHING A
COMMUNITY CHOICE AGGREGATION PROGRAM
At the June 8, 2004 Council meeting, the City Council adopted staffs recommendation to
begin to implement a phased approach to the Municipal Energy Utility (MEU) business
models recommended by the MEU Feasibility Study, which included Community Choice
Aggregation. On June 8, 2004, Council also directed staff to return with an ordinance for
their review and consideration that would declare the Chula Vista MEU a Community
Choice Aggregator (CCA).
Staff recommendation: Council place the following ordinance on rust reading:
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
ESTABLISHING A COMMUNITY CHOICE AGGREGATION PROGRAM IN
ACCORDANCE WITH CALIFORNIA PUBLIC UTILITIES CODE SECTIONS
218.3, 331.1,366, 366.2, 381.1, 394, AND 394.25, ALLOWING THE CITY OF
CHULA VISTA, ACTING AS THE MUNICIPAL ENERGY UTILITY, TO
AGGREGATE THE ELECTRICAL LOAD OF ELECTRICITY CONSUMERS
WITHIN THE CITY
ITEMS PULLED FROM THE CONSENT CALENDAR
OTHER BUSINESS
25.
CITY MANAGER'S REPORTS
26.
MAYOR'S REPORTS
.
Ratification of appointment to the Human Relations Commission - Pemy Cosca-
Reese
27.
COUNCIL COMMENTS
CLOSED SESSION
Announcements of actions taken in Closed Session shall be made available by
noon on Wednesday following the Council Meeting at the City Attorney's office in
accordance with the Ralph M. Brown Act (Government Code 54957. 7).
28.
CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a)
.
Ray v. Tsunoda, et al., (USDC 03CV1884-DMS (POR)
29.
CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF
LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(c)
.
One case
Page 9 - Council Agenda
June 15,2004
30.
CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO
GOVERNMENT CODE SECTION 54956.8
Property: San Diego Gas & Electric - Gas and Electricity Franchise (pertaining to
public rights-of-way throughout the City of Chula Vista)
Agency negotiators: David Rowlands, Jr., Sid Morris, David Huard
Negotiating Parties: City of Chula Vista and San Diego Gas & Electric (various
representatives)
Under Negotiation:
Price and terms of franchise conveyance
31.
CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a)
.
Application of SDG&E for Authority to Update its Gas and Electric Revenue
Requirement and Base Rates (Doc. Nos. A-02-12-27, A-02-12-028, and I 03-03-
016)
ADJOURNMENT to an Adjourned Regular Meeting on June 23, 2004, at 6:00 p.m. at the
John Lippitt Public Works Center. (The June 22, 2004 City Council Meeting has been
cancelled.)
Page 10-Counci1Agenda
June 15,2004
COUNCIL AGENDA STATEMENT
Item 1)
Meeting Date ~ ~/'5Iotf
ITEM TITLE:
Interim Report on the 2004 Sewer Service Rate Update by Black and Veatch.
Ordinance Amending the Chula Vista Municipal Code Section
13 .14.130 relating to Sewer Service Charge Variances for residential
Customers.
SUBMITTED BY: Director of General Services/City Engineer4
REVIEWED BY:
City Manager (ç ~ ¡I
h
(4/5ths Vote: (Yes: - No:--X-J
BACKGROUND:
On July 22, 2003, City Council adopted Resolution No. 2003-321, amending the Master Fee
Schedule by restructuring the sewer service rates and approving a four-year sewer service rate
schedule. Subsequently, on February 17, 2004, to address some of the concerns raised by citizens
regarding the new structure, Council by Resolution No. 2004-051, authorized staff to retain a new
consultant, Black & Veatch to update the Wastewater User and Rate Restructuring Study, which
was prepared by PBS&J.
RECOMMENDATION:
That City Council:
3.
Accept an Interim Report on the Sewer Rate Update by Black and Veatch.
Adopt an ordinance amending the Chula Vista Municipal Code Section 13.14.130
relating to the Sewer Service Charge Variances.
Direct staff to finalize the subject report and present to Council specific
recommendations next fiscal year for FY 05/06 and beyond.
1.
2.
BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable.
DISCUSSION:
On June 3, 2003, Council accepted the "Wastewater User And Rate Restructuring Study" prepared
by PBS&J (Resolution No. 2003-240), and shortly afterwards on July 22, 2003, approved a new
sewer service rate structure based on the study's recommendations. The new rate structure was
primarily put in place to enhance equity between various ratepayers, encourage conservation and
make revenue collection consistent with Metro charges.
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Page 2, Item~J
Meeting Date .f.I.8f6:r-Ç:,/15/o'i
Following the implementation of this new structure, some residents questioned the accuracy of
consumption-based billing utilizing the winter-use average. Concurrently, Staff determined that the
rate structure could not meet the expectations of the recently adopted revenue plan for this fiscal
year. Based on these two developments, a report was presented to Council on February 17, 2004,
which addressed these issues. At that meeting, staff was authorized to retain a consultant (Black &
Veatch) to prepare an update to the PBS&J Study to address the concerns of the residents and to
bring recommendations to Council for the resolution of these issues.
Black & Veatch Studv
Re-evaluation of the PBS&J Studv
The first phase of the Black & Veatch Study, was the review of the PBS&J Study. Black & Veatch
determined that the model used in the study contained some errors and inconsistent assumptions.
These caused the following financial impacts:
I. The adopted rate structure resulted in a revenue shortfall of approximately $2.75 million.
2. However, the revenue shortfall was largely mitigated by the following unanticipated
changes:
a. An increase in the proj ected number of sewer accounts, due to new housing.
b. Higher than anticipated billable flow (based on winter consumption).
c. Reduction of the estimated (Metro) cost to treat the City's wastewater.
Rate Adjustment
Black & Veatch and City staff considered numerous scenarios to update the rates for FY04/05
through FY 07/08. Staff is recommending the following strategy:
a. For the upcoming Fiscal Year 04/05, the difference between the proposed Black & Veatch
rates under various scenarios and the adopted rates are minimal amounting to a rate increase
of only I %. However, the difference will be much wider in subsequent years from FY 05/06
through FY 07/08. The existing rate plan includes a 9% increase for the upcoming fiscal
year. This difference between the existing plan and the Black & Veatch study for next year
is within acceptable assumption limits and does not warrant an immediate change. Due to
the reduction in estimated Metro expenditures for FY 04/05, the adopted rates should
generate sufficient revenue for next year. Therefore, staff recommends that the City use the
adopted rates for FY 04/05.
~
1-2.
Page 3, Item 3' I
Meeting Date .6t8ffl'( f,þ5/0l/
b. For FY 05/06 and beyond, Staff recommends that the City Council refrain from adopting
new rates (based on the Black & Veatch study) until the latter part of FY 04/05 for the
following reasons:
i. To develop a strategy to acquire needed Metro Sewer Capacity.
ii. To adopt the General Plan Update including the Wastewater Master Plan Update and the
development of related Capital Improvement Projects.
iii. To complete the re-evaluation of the Storm Drain fee, which is collected with the sewer
bill. This fee is currently being reviewed as part of the Drainage Facilities Master Plan
Update.
iv. To complete the re-evaluation of the Sewer Replacement fee, which also gets col1ected
with the sewer bill. This fee is currently being reviewed as part of the Wastewater
Master Plan Update
v. To account for the [mancial impacts of imminent debt re-financing by the City of San
Diego's Metro Wastewater Department.
vi. To complete our first fiscal accounting cycle with the consumption based sewer bil1ing
in order to minimize assumptions.
Trunk Sewer Capital Reserve Fund Transfers
The Trunk Sewer Capital Reserve is funded through the collection of "capacity fees" from new
connections to the City's sewer collection system. The fee, currently set at $3,000/Equivalent
Dwelling Unit (EDU), is charged to new users to use the collection system and the Metro capacity
(a "buy-in fee").
As noted last year when the present rate structure was adopted, the Sewer Service Fund operates
with a structural deficit (see table below). To cover this deficit, Trunk Sewer Capital Reserve funds
are transferred to the Sewer Service Revenue Fund. This transfer is consistent with provisions of the
Municipal Code that allow funds to be used for the construction or enlargement of sewer facilities
to enhance or increase capacity. With the demands of population growth, sewer capacity
requirements continually increase and are being addressed by the City of San Diego's ongoing
expansion of the Metro system.
It appears the City now needs to re-formuIate its strategy to purchase additional capacity. The new
strategy may affect the extent and amount of annual support that can be allocated to ratepayers from
the Reserve Fund. The fol1owing table shows the annual amount of financial support, as adopted, in
the existing rate structure:
75
/-g
Page 4, Item--L'
Meeting Date .6I8IM '-/i5/t)If
Existing Rate Plan 2004 2005 2006 2007 2008
Chula Vista's Operation and Maintenance Cost $27.2 $28.3 $30.1 $31.1 $32.0
Chula Vista's estimated Metro payment $18.4 $19.0 $20.4 $21.0 $21.6
Planned transfers from Trunk Sewer Fund $6.6 $5.9 $5.5 $4.0 $4.0
Trunk Sewer Fund support to ratepayers as a 24% 21% 18% 13% 13%
Percentage of Total O&M
* Table info is based on the current adopted revenue plan
Later next fiscal year, Staff will be recommending a strategy for the acquisition of additional metro
treatment capacity rights. Since the trunk sewer capital reserve fund will be required to fund the
acquisition, it is crucial to minimize the expenditures from that fund to facilitate the early build-up
of the needed reserves.
Consumption-based billinl!
While acknowledging some of the limitations of consumption based billing, overall, there is an
acknowledgement, in both the industry and the community, that the consumption-based structure is
preferred by most users to the flat rate structure because of equity. Once users understand the
underlying basis of the methodology, they feel more empowered because it offers them something
that the flat rate does not, choice. The user understands that there is something they can do to
change the outcome of their bill. In a flat rate structure the customer feels powerless, and unable to
control the fee they get charged for that utility. Hence, the reason for the preference of this method.
Reversion to a flat rate structure would significantly impact over 20,000 users who would see their
sewer fees go up. Some of these users will be those who generate very minimal flows. Furthermore,
for some of these users instead of having their charges go from $8.00 to $9.19 per month next fiscal
year, they could see their charges go to a flat-rate of $26.10. Therefore, Staff is recommending that
the City continue the consumption-based billing.
Implementation of an Appeal Process
Staff recommends the immediate implementation of an appeal process for residential ratepayers
having special water consumption circumstances during the winter season. These circumstances
include special irrigation needs, small households with large backyards and exceptional water
consumption such as the filling of a swimming pool during the winter season.
Section 13.14.130 of the Municipal Code sets forth the procedure for establishing criteria for sewer
service variances among different user classifications. This proposed ordinance would amend that
section of the Municipal Code to clearly state the City's intention to establish a method by which
single-family residence owners, and/or occupants, may obtain a variance to their applicable Sewer
Service Charges through an appeal process. Subsequent approval would be given by the City
Manager or his designee. The City Manager or his designee will be authorized to approve each
M
I-if
Page 5, Item~
Meeting Date ß/.8fM"' 6!¡6/0lf
request upon provision of adequate documentation. A copy of a sample application is attached
(Attachment 3).
FISCAL IMPACT: By staying with the adopted rate schedule, the City will recover sufficient
revenues to meet projected sewer-related expenditures for fiscal year 2005, including
reimbursements to the General Fund of $7. 7 million in fiscal year 2005 for critical City staff support
services for the maintenance and operation of the City's sewer collection and treatment system.
Attachments: 1. Table I - Current Sewer Service Charge Rate Structure
2. "2004 Sewer Rate Update - Interim Report", by Black and Veatch
3. Application for Sewer Rate Variance
Last printed June 3, 2004
J: IEngineerlAGENDA IAI13 _-2004- Rate - Increase-revised.ac.doc
~
1-5"
~\;O'rí\O~
~~\;\~G ~~\;
ORDINANCE NO. - ß'€.CO~\;
AN ORDINANCE OF THE CITY OF CHULA VISTA,
CALIFORNIA AMENDING THE CHULA VISTA
MUNICJPAL CODE SECTION 13.14.140 RELATING
THE SEWER SERVICE CHARGE VARIANCES BY
ADDING AN APPEAL PROCESS FOR RESIDENTIAL
CUSTOMERS
WHEREAS, sewer service charges pay for the operation and maintenance of the
sewer system and other incidental related expenditures; and
WHEREAS, sewer service charges are consumption-based and calculated by
measuring winter water usage; and
WHEREAS, sometimes certain activities by property owners or occupants cause a
substantial discrepancy between the property owner or occupant's sewer service charge
and their sewer system usage; and
WHEREAS, an appeal process to deal with such discrepancies already exists for
nonresidential customers; and
WHEREAS, this ordinance will establish an appeal process for residential users
with a separate water meter, who feel their consumption is not reflective of their
discharges into the sewer system.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby
ordain:
SECTION I. That Section 13.14.130 of the Chula Vista Municipal Code is amended to
read as follows:
13.14.130
Sewer service charge variances permitted when - Application - Contents
-Fees.
A.
The city manager shall have the power to establish rules and regulations for the
granting of variances from the established sewer service charges; pro'¡ided, such
rules and regulations shaH be approved by resolutioR ofthe city co\il~ei1. The city
manager or hislher designee shall have the power to grant variances from
established sewer service charge billing categories upon receipt of a variance
application as hereinafter provided from the owner or occupant of any premises,
and one or more of the following situations exist:
/-6
~
Ordinance No.-
Page 2 of 2
Text Underlined is Added
Text Redlined is Deleted
B.
1.
Where a nomesidential user's wastewater contains a total suspended solids
concentration sufficiently low as to qualify for a different sewer service
charge strength category.
2.
Where a substantial portion of the premises of an industrial or commercial
establishment is used for industrial, commercial, recreational, horticultural
or agricultural purposes of such a nature that the water supplied to such
premises is not substantially discharged into the sewer system.
3.
Where a residential user (with a separate water meter) has sufficient
evidence to prove that his or her average winter consumption (usage from
November 1st through April 30th). which forms the basis of their monthlv
sewer service charge. does not substantiallv correlate to the amount of
sewage discharged into the sewer collection system.
The owner or occupant of any premises subject to the sewer service charge may
apply in writing to the city manager for a reclassification of such premises
("variance") under the provisions of subsections (A)(I) or !A}(2) or (A )(3) of this
section; provided, however, that no rebate upon such reclassification shall be
allowed for a period more than 90 days preceding the filing of such application.
The citY manager or hislher designee shall render a decision as soon as practical.
but not longer than sixty davs after receipt of the request for a variance. The
applicant shall bear the burden of proof and furnish substantial engineering and
factual data to support the applicant's contention. bv clear and convincing
evidence. that the premises should be reclassified as provided in this section.
C.
The owner or occupant of any premises requesting a variance from the sewer
service charges pursuant to the provisions of this section and the rules and
regulations apprøved by resebtion oft.fie eity eouneil shall pay the required fee(s)
to cover the cost of investigation of said request (if any); provided, however, that
no fee shall be charged for a request for total exemption from the sewer service
charge. In addition, a special handling charge to cover the cost of billing and
inspections to be paid per billing may be established in the resolution granting the
¥afÌaÐee by resolution of the city council.
SECTION ll. This Ordinance shall take effect and be in full force on the thirtieth day
from and after its adoption.
Presented by:
Approved as to form by:
.:Do- 7.. I+~
Alex Al-agha
City Engineer
Ann Moore
City Attorney
1-7
~
COUNCIL AGENDA STATEMENT
Item).
Meeting Date: June 15.2004
ITEM TITLE:
Resolution Accepting bids and awarding contract for the
"Rohr Park Parking Lot Lighting (CIP PR252)" Project to A.B.
Hashmi, Inc., in the amount of$114,995.
SUBMITTED BY: Director of General Services \.9J-.-
í' (j
REVIEWED BY: CityManager~9i.J (4/5thsVote: Yes_No...K..)
On May 25, 2004, at 2:00 p.m., the Director of General Services received sealed bids for
the project "Rohr Park Parking Lot Lighting (CIP PR252)". The work for the project
primarily includes material and labor to install parking lot lights and walkway lights,
replacement of existing 200 AMP and service panel, provision and installation of new
time clock per contract specifications at Rohr Park.
RECOMMENDATION:
That Council accept the bids and award the contract for the "Rohr Park Parking Lot
Lighting (CIP PR252)" Project to A.B. Hashmi, Inc., in the amount of $114,995 and
authorizing the Mayor to execute said contract.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
On May 7,2004 the City advertised for contractors to bid on the construction of the Rohr
Park Parking Lot Lighting (CIP PR252) Project and on May 18, 2004 staff conducted a
Mandatory Pre-Bid Meeting with the prospective bidding contractors. On May 25, 2004
bids were received and publicly opened. The two bid proposals were as follows:
1. A.B. Hashmi, Inc.
4347 Meadow Spring Way
Oceanside, CA 92057
2. ACE Electric, Inc.
PO Box 601071
San Diego, CA 92160
C-IO 835109
¿)-/
Item :2.
Meeting Date: June 15, 2004
Proiect Advertisement and Bid Results
A mandatory pre-bid meeting on site was held for the Project on May 18, 2004, to review
the requirements of the Project and to receive any questions or concerns regarding the
plans and specifications from the prospective contractors bidding on the project.
Attendance by said contractors at this meeting was required to be eligible to submit a bid
for the project. At the mandatory pre-bid meeting, several contractors raised concerns
about the Project. City staff subsequently addressed the concerns and notified all parties
involved via an Addendum.
Staff received and opened bids on May 25,2004 at 2:00 p.m. The lowest responsive bidder
for the project was based on the contractor who submitted all required documents detailed
in the contract documents and who submitted the lowest base bid for the project
construction. Bids from the contractors were received as follows (Bids sorted by bid
amount):
CONTRACTOR BASE BID
A.B. Hashmi, Inc. of Oceanside $114,995
ACE Electric, Inc. of San Diego $117,400
Staff received excellent bids for the project. The Project was estimated at $100,000 to
$125,000 and was based on average unit prices for similar types of work completed
recently.
The General Services Department Staff checked the references required by the project
specifications that the contractor submitted. All references checked were verified and their
work has been satisfactory. The contractor's License Number for A.B. Hashmi, Inc. is
798383 and is clear and current. Staff has reviewed the low bid and is recommending
awarding the contract to A.B. Hashmi, Inc. in the amount of$114,995.
Environmental Status
The Environmental Review Coordinator has reviewed the proposed project for compliance
with the California Environmental Quality Act and has determined that the project
qualifies for a Class 3 categorical exemption pursuant to Section 15303 of the State CEQA
Guidelines. Thus, no further environmental review is necessary.
Disclosure Statement
Attachment "B" is a copy of the contractor's Disclosure Statement.
d-;)..
h
Item d--
Meeting Date: June 15. 2004
Prevailinl!: Wal!:e Statement
The project is being fmanced with Park Acquisition Development funds. Based on the
current project funding guidelines, the contractors bidding this project are not required to
pay prevailing wages to persons employed by them for the work under this proj ect.
Fiscal Impact
The tables below detail the funds required and the funds available for the projects:
FUNDS REQUIRED FOR CONSTRUCTION
A. Contract Amount (A.B. Hashmi, Inc.) $114,995
B. Contingencies $11,000
C. City Oversight (Administration and Inspection) $9,005
TOTAL FUNDS REQUIRED FOR CONSTRUCTION $135,000
FUNDS AVAILABLE FOR CONSTRUCTION
A. Park Acquisition and Development Fund $135,000
TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $135,000
The above action of awarding the contract will authorize a total expenditure of $135,000
from the budgeted CIP project. Upon completion of the project, only routine City
maintenance will be required.
Attachment:
A - Disclosure Statement
J:IGeneral ServiceslGS AdministrationlCouncil AgendalRohr Park Parking Lot Lighting PR252\A113 PR252 RPPL.doc
;)-3
City ofChula 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 ofthe City, a statement of disclosure of
certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista
election must be filed. The following information must be disclosed:
I.
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.
Å.(?. ~\rM\ INl..
2.
If any person* identified pursuant to (1) above is a corporation or partnership, list the names of all
individuals with a $2000 investment in the business (corporation/partnership) entity.
"tt-""Ai)
9. ~MI .P^-~\hEN..
3.
If any person* identified pursuant to (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 \~ .
4.
Please identify every person, including any agents, employees, consullants, or independent
contractors you have assigned to represent you before the City in this matter.
N,, J~
5.
Has any person* associated with this contract had any financial dealings with an official** of the
City ofChula Vista as it relates to this contract within the past 12 months? Yes- No~
13
J:\GeneraI Services\ContractslPR252 Rohr Park Lot LightingIPR252 Contractdoc
;1-1
If Yes, briefly describe the nature of the fmancial interest the official" may have in tills contract.
6.
Have you made a contribution of more than $250 within the past twelve (12) months to a cWTent
member of the Chula Vista City Council? No~ Yes _If yes, which Council member?
7.
Have you provided more than $340 (or an item of equivalent value) toan official"" of the City
of Chula Vista 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?
Date:
5\1. (j el -
~~
Signature of Contractor/Applicant
Aff/llt/ltð B. tMJ.""",
Print or type name of Contractor/Applicant
,
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.
14
J:\General ServiceslContractslPR252 Robr Park Lot LightinglPR252 Contract.doc
~-s
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE
"ROHR PARK PARKING LOT LIGHTING (CIP PR252)" PROJECT
TO A.B. HASHMI, INC., IN THE AMOUNT OF $114,995
WHEREAS, on May 25, 2004, at 2:00 p.m., the Director of General Services received
sealed bids for the "Rohr Park Parking Lot Lighting (CIP PR252)" project; and
WHEREAS, two contractors submitted bids to perform the work as follows:
Contractor Base Bid
Amount
A.B. Hashrni, Inc. $114,995
ACE Electric, Inc. $117,400
WHEREAS, staff has reviewed the low bid and recommends awarding the contract to A.
B. Hashmi, Inc., in the amount of$114,995; and
WHEREAS, the General Services staff checked references required by the project
specifications that the contractor submitted. All references checked were verified and their work
has been satisfactory; and
WHEREAS, the Environmental Review Coordinator has reviewed the proposed project
for compliance with the California Environmental Quality Act and has determined that the
project qualifies for a Class 3 categorical exemption pursuant to Section 15303 of the State
CEQA Guidelines. Thus, no further environmental review is necessary.
NOW, THEREFORE, be it resolved the City Council of the City of Chula Vista does
hereby accept bids and award the contract for the "Rohr Park Parking Lot Lighting (CIP
PR252)" Project to A. B. Hashmi, Inc., in the amount of$114,995.
BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby
authorized and directed to execute said contracts on behalf ofthe City of Chula Vista.
Presented by
Approved as to form by
Jack Griffin
Director of General Services
)
J:\attomeylreso\bids Rohr Park
:;J.-i¡?
COUNCIL A.GENDA STATEMENT
Item l:3
Meeting Date 6/15//04
ITEM TITLE:
Resolution appropriating funds from the Traffic Signal Fund to
reimburse developer for costs associated with traffic signal relocation at
Fourth Avenue and C Street.
SUBMITTED BY:
Direct<'r of General Services / City Engineer ~
City ManagerCIV ......
ç rI 9\
(4/5ths Vote: Yes-X-No-->
REVIEWED BY:
As part of planned redevelopment at the southeast comer of Fourth Avenue and C Street, the
existing traffic signal has been relocated by the developer at a cost of $78,299. Adoption of the
resolution will reimburse the developer for those costs from available Traffic Signal funds.
RECOMMENDATION: That Council adopt the resolution.
BOARD/COMISSION RECOMMENDATION: Not applicable
DISCUSSION:
Recently, the owner of the property known as 10 Third Avenue extension (the southeast corner
of Fourth Avenue and C Street), submitted an application for a Precise Plan (PCM 02-05) to
construct a Save-On store ak,ng with another 1,200 square foot retail building on the site. As the
plans were processed through the Engineering Division, th,~ requirement to widen the adjacent
streets was imposed in accordance with the Municipal Code requirements.
Fourth Avenue is considered a four-lane major street in the General Plan, and the Third Avenue
extension (C Street) is a Class I collector. Each street curreatly has a half-width of 32 feet from
the centerline to the curb. Current Chula Vista Design St¡mdards for the intersection of these
streets call for half-widths of 50 feet on Fourth Avenue and 37 feet on the Third Avenue
extension (C Street).
The developer has agreed to wmplete the widening work, but asked the City to assist in the cost
of relocating the traffic signal and appurtenant facilities. This cost is higher than typical traffic
signal relocations because the City asked the developer to install modern camera activated
detection devices at all four traffic signals instead of the standard loop detectors. Thus, the
upgraded signal is being installed at the request of the City. The developer has paid his assessed
Traffic Signal Fee of $22,5.:19.52 as part of the building permit for on-site development. It is
staffs opinion that the City may now pay the relocation costs, including the upgraded camera
signal activation devices 011t of Traffic Signal Funds. Staff believes that this expenditure is
justified on the basis that th¡ s intersection is one of the busiest in the City and, while the signa]
relocation is essential for th:: provision of adequate circulation, its cost is considerably beyond
'S-I
Page 2, Item 3
Meeting Date 6/15/04
what staff has determined to I:>e the developer's proportional contribution to the traffic volume at
that intersection.
Council Policy No 478-01 establishes a policy on participation by private developers for the
financing and/or installation of traffic signals on public str~ets in the City of Chula Vista. A
copy of the policy is attaehed for reference (Attachment 2). The policy provides for
proportionate contribution b:! all private developments generating traffic toward the projected
traffic signal needs of the Ci :y. Paragraph 10 of the policy states: 'The City may require that a
developer whose project cre,ltes an immediate need for signalization.".undertake to install such
signalization subject to future reimbursement from the Traffic Signal Fund. Reimbursement of a
developer to the extent that ,:heir construction cost (including design) exceeds the traffic signal
charge shall have first call 011 the Traffic Signal Fund." There are funds available in the Traffic
Signal Fund to reimburse the developer and doing so is in ke~ping with this policy.
The developer has solicited bids from three contractors and will be letting a contract soon. Staff
will require the developer t,:¡ pay the normal Traffic Signal Fee on issuance of the building
permit, plus the cost of the dgnal relocation when the widening takes place. If Council adopts
the subject resolution, the Ci:y will reimburse the developer the full cost of the signal work after
the job is complete and the irlvoices are reviewed and approved by staff.
FISCAL IMPACT: There IS no impact to the General Fund. The expenditure of $78,299 will
be borne by available Tramc Signal funds, of which Traffic Signal fees will reimburse
$22,549.52 for a net total expenditure from the Traffic Signal Fund of $55,749.48.
Attachments: Council Polic'>, No. 478-02
File No. 0710-45-PC-1577
j,\EngincecIAGENDA\Follrth&Creil11b.se.( b.doc
S~ól
ATTACHMENT 1 :
SUBJECf:
COUNCIL J'OUCY
CITY OF CHUIA VISTA
POLICY
NUMBER
PAGE
PARTICIPATION BY PRIVATE
DEVELOPERS IN THE FINANCING
AND/OR INSTALLATION OF
TRAFFIC SIGNALS
ADOPTED BY: Re~¡olutionNo.13857 I DATED: 11-13-01
AMENDED BY: Council Action (02/17/01); Resolultion No.: 2001-385 (11/13/01)
EFFECTIVE
DATE
11-13-01
478-01
10F3
pURPOSE
To es1ablisb a policy f'Jr participation by private developers for the financing and/or installation of traffic
signals on public streets within the City of Chula Vista.
BACKGB-OUND
New developments, wbether residential, commercial, or industrial, generate additional traffic which result!
in increased congestiol1 or safety hazards at various stmet intersections throughout the City. Tbe installatiOl
of traffic signals is sometimes necessary in order to accommodate the safe and efficient flow of vehicu1al
traffic.
The City has in the past required developers to participate in the cost of signalization which directlj
impacted a major individual development. Lesser developments, however, were not required to participate.
The system was inher'~ntly inequitable.
This policy provides liJr proportionate contribution by all private developments generating significant traffit
toward the projected l:raffic signal needs of the City. 11 is the intent of the City Council in establishing \hi!
policy that all development, redevelopment, remodeling or other activity which will result in a long-tern
INCREASE in the number of vehicle trips upon the City's system of streets shall be subject to the traffi,
signal charge. That d1arge shall be based on upon the net INCREASE in number of trips generated by an)
specific site, and shall NOT include trips generated at such site under previous or current usage.
STATEMENT OF PO~çy
1.
All new priv!1te residential, commercial or industrial development as described below shall, as a
condition of building permit issuance (or approval of a rezoning action relative to creation of new
mobile home spaces), pay a traffic signal ch¡iTge for additional trips generated as authorized by
ordinance of tbe City Council, and in such amount per additional trip as stipulated by City CounciJ
resolution frotn time to time. The base charge is initially set at $23.00 per average weekday daily
trip. Trips generated by current property usage or verifiable prior usage shall be excluded in
determining the total charge, which shall be balled on additional tri¡JS generated at the site under the
new use. FOl the purposes of this policy, verifiable prior usage shall be the last known usage of the
property withIn five (5) years of the date of application for development approval if said property is
currently vac¡mt. In the event that the property has been vacant for more than five (5) years, no
exclusions wiLl be me made regardless of property usage more than five (5) years in the past.
2.
Remodeling (,,:nlarging, altering, repairing or improving and/or replacement) of existing residential
development is exempt from the traffic signal charge except where and to the extent additional
residential dw:~l1ing units are created.
3-3
SUBJECT:
COUNCIL POLICY
CITY OFCHUIA VISTA
POILICY
NUMBER
PAGE
20F3
PARTICIPATION BY PRIVATE
DEVELOPERS IN THE FINANCING
AND/OR INSTALLATION OF
TRAFFIC SIGNALS
EFFECTIVE
DATE
11-13-01
478-01
"
ADOPTED BY: Resolution No. 13857 I DATED: 11-13-01
AMENDED BY: Council Action (02/17/01); Resolution No.: 2001-385 (11113/01)
"
3.
Structural, occupancy, or u:;,e modificatioos to existing commercial or industrial developments which
are projected to increase tlie average daily traffic generated relative to the total development site by
2% or more shall be subject to payment of the traffic signd charge to the extent of the projected
increase in traffic. Traffic volume detenninations/projection:¡ for current and future traffic at the site
shall be made by the City Engioeer who shall be required as a condition of approval to any action
fonnally pennitting a strUf;tural, or occupaocy, or use modification to an existing commercial or
industrial/development.
4.
Notwithstanding any other provisions of this policy, no private development shall pay the traffic
signal charge more than mice for a given level of traffic gen'~ration. Where ADDITIONAL trips are
generated relative to a preYious1y developed property, the traffic signal charge will be applied only to
the ADDITIONAL units ar,d/or trips generated.
5.
Any private development which has been required to install a traffic signal shall get credit for the cost
of that installation in co:nputing traffic signal charges for subsequent development within the
boundaries of that private development.
6.
The traffic signal charge shlLll be based on the vehicular trip generation rate for the applicable land use
category as shown per tile latest "Brief Guide of Vehicular Traffic Generation Rates for the San
Diego Region", which is published by San Diego Association of Governments (SANDAG). Traffic
generation rates for land uses not addressed by the SANDAG gnide shall be detennined using the
latest ITE Trip Generation book or as approved by the City Engineer.
7.
No additional charge will I:le required of residential developments for on-site recreational or service
facilities (cabanas, clubhouses, swimming pools, meeting rooms, etc.) unless such facilities are open
to the public. Any such public facilities shall pay a charge based on the total acreage of the facility
including parking areas and a vehicular trip rate of 200 per acre.
8.
For all private developmerlts, the traffic signal charge shall be computed by multiplying the new
additional vehicle trip gemoration times the established base charge (in dollars per one-way trip per
day).
9.
The entire City, including !:.ubsequent annexations, shall be the same Benefit Area for Traffic Signals.
All traffic signal charges shall be placed in the Traffic Signal Fund. Use of funds from such account
shall be limited to desigr:, construction inspection and modification of traffic signals within the
Benefit Area for Traffic Silgnals. Traffic signal construction may include: traffic signal controller,
standards, signal heads, wiring, conduit, power supply, detectors, pedestrian push buttons,
nnint~rnmtihl~ now~r ."nnlv .v.t~m. .m1 incli"oto.... n.intin" of .tr~~t .trinin". int~rmnn~dion with
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COUNCIL POllCY
CITY OF CHULA VISTA
CIPATION BY PRIVATE POLICY EFFECI'IVE
ILQPERS IN THE FINANCING NUMBER DATE PAGE
:>R INSTALlATION OF 478-01 11-13-01 3 OF 3
FIC SIGNALS
:
SUBJECT:
11.
12.
13.
PARTI
DEVE
AND!'
TRAP
ADOPTED BY: Resolution No. 13857 I DATED: 11-13-01
AMENDED BY: Council Action (02/17/01); Resolution No.: 2001-385 (11/13/01)
signals under 1';laster controller, signal-related street widening and signal-related raised median island
construction.
10.
The City may J',equire that a developer whose project creates an immediate need for signalization (per
warrant system specified in C.V. Code Section 10.24.070) undertake to install such signalization
subject to futUte reimbursement from the Traffk Signal Fund. Reimbursemeut of a developer to the
extent that the.r construction cost (including design) exceeds his traffic signal charge shall have first
call on the TniÚIic Signal Fund. No interest shall accumulate on the amount to be reimbursed.
Reimbursemellrt for any given installation shall commence only when and if funds are available in the
Traffic Signal Fund and when all prior date reimbursement commitments have been satisfied iD full.
Any private development which installs a.traffil: signal that is not required by the City Or does not
meet traffic sienal warrants as specified in Chula Vista Code Section 10.24.070, may not be given any
credit for the (osts of the signal against their required traffic signal fee. The City reserves the right to
grant credits ì I' it concludes after performing an appropriate engineering analysis, the cost of such
analysis being borne by the developer, that the signal will provide significant benefit to the general
public. Such I:onsideration by the City will only be provided if the signal is installed on a public
street, or streets, and any credit will be prorated based on the affected approaches to the intersection
owned by thl: City. Example, an intersection with a private street on one approach and two
approaches owned by the City will be potentialI:y eligible for a credit not to exceed two-thirds of the
cost of the sigllals.
The City will not provide reimbursements for any costs incurred by a developer for a signal not
required by the City nor meeting traffic signal warrants.
The City may ildvance funds to the Traffic Signal Fund or provide funds for traffic signal installation
which funds shall be subject to reimbursement in the same manner as provided herein for a developer.
The above chslŒge at $23.00 per average weekly daily trip be adjusted, starting on October 1, 2002,
and on each October 1st thereafter, based on the one year change (from July to July) in the 20 City
Construction Cost Index as published monthly in the Engineering News Record. For reference
purposes, the .lu1y 2001, 20 City Construction Cost Index is 6404.03. Adjustments to the Traffic
Signal Participation Fee based upon the 20 City Construction Cost Index shall be automatic and shall
not require fullher action of the City Council.
H:\Council Policy Updates\478.0IFinal, Traffic signa! insla!lation by private clevelopers.doc
3-.5
RESOLUTION NO. 2004-_-
RESOLUTION OF THE CITY OF CHULA VISTA
APPROPRIATING FUNDS FROM THE TRAFFIC
SIGNAL FUND TO REIMBURSE DEVELOPER FOR
COSTS ASSOCIATED WITH TRAFFIC SIGNAL
RELOCATION AT FOURTH AVENUE AND C STREET
WHEREAS, the owner of property being redeveloped at the southeast corner of
Fourth Avenue and C Stfi:et submitted an application for a Precise Plan (PCM 02-05) to
construct a Sav-On drug store and 1,200 square foot retail building on the site; and
WHEREAS, the requirement to widen the adjacent streets was imposed in
accordance with the Mlmicipal Code requirements; and
WHEREAS, the developer has agreed to complete the widening work but asked
the City to assist in the cost of relocating the traffic signal and appurtenant facilities; and
WHEREAS, City Council Policy No. 478-01 states that the City can reimburse
developers for traffic sigtlals the City requires them to install if their project creates an
immediate need for signalization and the signalization project's construction costs exceed
the developer's traffic signal charge; and
WHEREAS, the developer will pay a traffic sigrlal fee of approximately $23,000
as part of the building permit for on-site development; and
WHEREAS, the cost for this project (estimated at $82.000) will be much higher
than typical traffic signal relocations because the City asked the developer to install
modern, camera-activated detection devices at all four traffic signals instead of the
standard loop detectors; md
WHEREAS, the extra expenditure is justified on the basis that this intersection is
one of the busiest in the City and the signal relocation is essential for the provision of
adequate circulation.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby authorize the expenditure of Traffic Signal Funds to reimburse
the developer of the southeast corner of Fourth Avenue and C Street for costs associated
with the traffic signal relocation project.
Presented by
Approved as to form by
"DcM-7o Ib-
Jack Griffin
Director of General Services
Ann Moore
City Attorney
JJattorney/rego/appropriation Traffic Signal Fund
3-tp
COUNCIL AGENDA STATEMENT
ItemA-
Meeting Date 6/15/04
Resolution approving change orders requested by The Eastlake
Company, LLC for Otay Lakes Road and Olympic Parkway.
SUBMITTED BY: Director of General Services/City Engineer ~
I.f
REVIEWED BY: City Managerç~ í)~ (4/5ths Vote: Yes_NoX)
Eastlake Company completed the construction of two projects to widen Otay Lakes Road and
one project to complete Olympic Parkway and submitted payment requests for reimbursement
from Community Facilities District No. 06-1. Each payment request includes change orders that
require City Council approval prior to reimbursement from bond proceeds and receipt ofTDIF
credit.
ITEM TITLE:
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
RECOMMENDATION: That Council adopt the resolution.
DISCUSSION:
Backl!round
CFD 061 was established in September 2002 to finance infrastructure related to several Eastlake
projects estimated to cost $48 million. Approximately $45 million will be made available to finance
the infrastructure projects via CFD 061. Eastlake has been reimbursed $9.4 million to date for
constructing portions of Olympic Parkway east of SR 125. Eastlake has completed additional
improvements and is requesting reimbursement from CFD 061 for eligible costs. Contained within
these requests were a series of change orders that require Council approval, prior to making payment,
based upon the guidelines of the AcquisitionlFinancing Agreement for CFD 06-1 and the City's
Directives and Procedures for TDIF Reimbursement/Credit (see Attachment I). Council previously
approved change orders in the amount of$I,946,500 for Olympiè Parkway in order to ensure the
timely opening of Olympic Parkway through the SR 125 corridor!).
As noted above, The Eastlake Company, LLC submitted payment requests for reimbursement from
CFD 06-1 for the construction of Otay Lakes RoadiEastlake Parkway Widening, Otay Lakes Road
east of Hunte, and Olympic Pkwy (between SR 125 and Hunte Pkwy). The majority ofthese three
payment requests are eligible for Transportation Development Impact Fee (TDIF) credit (see
Attachment 2). The payment requests include new change orders as generally described below.
1 Resolution No. 2002-163
1-)--1
Page 2, Item L
Meeting Date 6/1504
Change Orders related to the widening ofOtayLakes Road between Eastlake Parkway and SRl25
(and including Eastlake Parkway between Otay Lakes Road and Fenton Street)
The submittal includes nineteen (19) change orders totaling $196,285.54 for a total CFD project cost
of$I,243,000 of which $1,107,800 is TDIF eligible. All of the change orders have been audited for
eligibility for payment from the bond proceeds and for TDIF credit. The work has been substantially
completed but is not ready for final acceptance. Reimbursement from the CFD is limited to 75%
until final completion of the improvements to the City's satisfaction. See Attachment 3 for a detailed
summary.
Change Orders related to the widening of Otay Lakes Road between Hunte Parkway and Station
221+00
The submittal includes fifty-seven (57) change orders totaling $983,832.06 for a total CFD project
cost of$6,956,500 of which $6,260,800 is TDIF eligible. All of the change orders have been audited
for eligibility for payment from the bond proceeds and for TDIF credit. The work has been
completed and inspected to the City's satisfaction. (Landscape improvements are substantially
completed but not ready for final acceptance. Reimbursement from the CFD is limited to 75% until
final completion.) See Attachment 4 for a detailed summary.
Change Orders related to the construction of Olympic Parkwav between Hunte Parkway and SRI25
The submittal includes fifty (50) change orders totaling $1,305,705.01 for a total CFD project cost of
$16,715,100 of which $14,660,000 is TDIF eligible. All of the change orders have been audited for
eligibility for payment from the bond proceeds and for TDIF credit. The work has been completed
and inspected to the City's satisfaction. (Traffic signal and landscape improvements are substantially
completed but not ready for final acceptance. Reimbursement from the CFD is limited to 75% until
final completion.) See Attachment 5 for a detailed summary.
Staff finds these change orders reasonable and recommends that Council approve a total of
$2,485,800 in change orders associated with Otay Lakes Road/Eastlake Parkway Widening, Otay
Lakes Road (east of Hunte Parkway) and Olympic Parkway. Ofthese change orders, 40% (by cost)
are due to additional grading haul costs, changed pavement section and repair work based upon field
conditions, changed sewer cleanout requirements, and additional traffic control costs to keep these
roads open during construction. The sum of all change orders to date equals 18% of these projects'
costs.
Resolution
There is one Resolution for this item on today's agenda, which, if adopted, will accomplish the
following:
. Approve the nineteen (19) change orders for Otay Lakes Road between Eastlake
Parkway and SRI25 (and including Eastlake Parkway between Otay Lakes Road
and Fenton Street).
. Approve the fifty-seven (57) change orders for Otay Lakes Road between Hunte
Parkway and Station 221 +00.
If--cr
Page 3, ItemL
Meeting Date 6/1504
. Approve the fifty (50) change orders for West Olympic Parkway between Hunte
Parkway and SR125.
. Enable these change orders to be financed from CFD No. 06-1 and enable TDIF
credit to be awarded for the amount of the TDIF-eligible change orders.
According to the Municipal Code, the City Engineer determines the final TDIF-
eligible amount.
FISCAL IMPACT:
There is no impact to the General Fund. CFD 061 and the TDIF program fund costs associated with
processing this item.
Attachments:
I. CFD 06I/TDIF Change Order process (excerpt from AcquisitionlFinancing Agreement)
2. Summary of CFD 061 estimated costs and TDIF estimated costs compared to actual
3. Otay Lakes RoadlEastlake Pkwy Widening change order summary
4. Otay Lakes Road east of Hunte Pkwy change order summary
5. Olympic Pkwy between Hunte Pkwy and SR 125 change order summary
nEngineerlAGENDA\CFD 061 change orders 5-04.doc
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Change Orders
A.
No single change order for a TDIF Improvement shall be eligible for inclusion in
the Purchase Price for such Improvement that increases or decreases the original
contract amount for the construction of such Improvement by more than $50,000
without City Council approval.
B.
All change orders shall be fully documented and be in a format consistent and be
in a format consistent with the original bid items (i.e., show units" unit costs,
extensions and total costs). The City Engineer, in hislher sole discretion shall
determine the eligibility of each change order for inclusion in the Purchase Price
for an Improvement.
C.
The aggregate of all change orders for TDIF Improvements, including those for
differences between estimated and actual quantities shall not increase the contract
amount by more than the amount specified below without City Council approval:
Original Contract Range Maximum Aggregate Increase
Up to $100,000 10%
$100,001 to $1,000,000 $10,000 plus 7% of amount over $100,000
More than $1,000,000 $73,000 plus 5% of amount over $1,000,000
J
D.
E.
The aggregate of all change orders for any non- TDIF Improvement shall not
increase the Purchase Price thereof so as to caii5esüCh Purchase Price to exceed
the cost estimate for such Improvement as set forth in Exhibit A by more than
25% without City Council approval.
All change orders involving changes in scope of the project, or increases of
contract amounts greater than outlined in C. above shall be submitted to the City
Council for approval after the construction of the Improvement is completed, but
before the payment of any portion of the Purchase Price for such Improvement is
authorized by the City Engineer. Change orders that the Developer does not wish
to include in the Purchase Price for an Improvement do not need to go to City
Council for approval.
Negotiated set price change orders are acceptable where most of the items of work
in the change order have unit prices from the bids. Where change orders are for
work that does not have unit prices for a substantial portion of the work contained
within the bids, time and materials change orders are preferred. 4- -1
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Attachment 2
CFD Cost - CFD Cost- TDIF TDIF Cost -
Improvement: CFD Project No. Estimate' Actual _project No. 2002 Estimate
TDIF Cost -
Actual
Otay Lakes Road/Eastlake Pkwy
(includes landscaping)
10,35
1,174,000 1,243,000
5,922,143 5,507,400
1,531,072 1,449,100
14,047,992 13,657,200
3,297,106 3,057,900
25,972,313 24,914,600
30,31
1,458,918
1,107,800
Otay Lakes Rd e/o Hunte
Otay Lakes Rd e/o Hunte Landscape
8,32, 33
9
28 (portion) 3,123,720 4,811,700
807,436 1,449,100
22A, 228 10,273,206 11,747,600
2,871,995 2,912,400
18,535,275 22,028,600
Olympic Pkwy Hunte to SR 125
OIYl11pic Pk.."y Hunte to SR 125 Landscape
4,21,23-26,40
5
TOTALS:
1 Includes both TDIF and non-TDIF costs, includes soft costs, and excludes traffic signal fee eligible costs
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(Eastlake Parkway to SR125)
75% Base Increment for roadway improvements
CFD 06-1 Reimbursement/TDIF Credit
audit compieted by PMC on 4/5/04
Contract Change Total Developer Audit TDIF
Hard Cost Cateoorv Amount Orders Contract Reouest ApDroved Eliaible
radina $0.00 $21,744.00 $21,744.00 $21,744.00 $21,744.00 $21,744.00
sewer $18,300.00 $0.00 $18,300.00 $18,300.00 $18,300.00 $0.00
storm drain $11,130.00 $0.00 $11,130.00 $11,130.00 $11,130.00 $11,130.00
water. potable $68,113.50 $68,113.50 $68,113.50 $68,113.50 $0.00
water - reclaimed $7,855.00 $9,350.00 $17,205.00 $17,205.00 $17,205.00 $17,205.00
curt>, autter, sidewaik $134,682.40 $0.00 $134,682.40 $134,682.40 $134,682.40 $134,682.40
dry utilities (IRS 5% limit = $1.679M\ $44,239.80 $39,075.40 $83,315.20 $83,315.20 $83,315.20 $83,315.20
avement $128,675.60 $100,518.89 $229,194.49 $229,194.49 $229,194.49 $229,194.49
sionaoe & strioino $15,000.00 $2,750.00 $17,750.00 $17,750.00 $17,750.00 $17,750.00
erosion controi $15,000.00 $0.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00
traffic control $65,000.00 $0.00 $65,000.00 $134,682.40 $134,682.40 $134,682.40
landscape & irrigation $69,396.00 $12,847.25 $82,243.25 $82,243.25 $82,243.25 $82,243.25
sianal @ Otay lakes Rd./Eastlake Parkway (partial 100% TDIF $100,000.00 $0.00 $100,000.00 $100,000.00 $100,000.00 $100,000.00
sional @ commercial entrance on OlR (oartial 50% TDIF $115,150.00 $0.00 $115,150.00 $115,150.00 $115,150.00 $57,575.00
bonds $0.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00
Subtotal Hard Costs $792,542.30 $196,285.54 $988,827.84 $1,058,510.24 $1,058,510.24 $914,521.74
Other Misc. Hard Cost Items I-'"
dry utility relocation Schillina) IRS 5% limit - $1.679M $3,500.00 $3,500.00 $3,500.00
sianing & striping (city of Chula Vista) $9,910.09 $9,910.09 $9,910.09
construction water OWD) $850.00 $850.00 $850.00
dry utility relocation Crest Electric) IRS 5% limit = $1.679M $185.00 $185.00 $185.00
dry utility relocation SDG&E IRS 5% limit = $1.679M $9,317.00 $9,317.00 $9,317.00
dry utiilty relocation Cox Cabie) IRS 5% limit = $1.679M $6,912.26 $6,912.26 $6,912.26
Subtotal Misc. Hard Costs $30,674.35 $30,674.35 $30,674.35
Total Hard Costs $1,089,184.59 $1,089,184.59 $945,196.09
Total costs aaainst IRS 5% limit of $1.679M for CFD 06-1 $105,728.92
TDIF Developer Audit TDIF
Soft Cost Cat-orv Maximum Request Approved Eligible
Design engineering (max.@ 7.5% of imorovement cost $70,889.71 $74,330.45 $74,330.45 $70,889.71
Surveyina and stakina (max @ 2% of improvement cost $18,903.92 $5,681.00 $5,681.00 $5,681.00
Soils engineerino Imax @ 15% of oradina) $3,261.60 $10,985.50 $3,261.60 $3,261.60
Utility desian Imax @ 3% of dry utility cost $2,499.46 $14,503.84 $2,499.46 $2,499.46
landscaoe architecture max @ 10% of l & I cost $8,224.33 $8,224.33 $8,224.33 $8,224.33
Developer administration (max @ 1.75% of hard costs) $16,540.93 $0.00 $0.00 $0.00
Plan check and permit fees (actual) $26,619.56 $26,619.56 $26,619.56 $26,619.56
Total Soft Costs $146,939.50 $140,344.48 $120,616.39 $117,175.65
Total Costs $1,229,529.07 $1,209,800.98 $1,062,371.74
less costs eligible for Traffic Signal credit -$57,575.00
$1,152,225.98
U,IPMC Pmject,'Chula VI,taICFO 06-1 (Ea,"akeIIOtay Lake, Rd Widening (E.,tlake Pkwyto SR12S)\100% ,eimbu"ement dated 5-13-04.xl,
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ttachment 3: Otay Lakes Road Widening (CFD Improvement #1
(Eastlake Parkway to SR125)
75% Base Increment for roadway improvements
CFD 06-1 Reimbursement
(audit completed by PMC on 4/5/04)
ChanQe order summa:
CO1 - extra grading and haul earthwork) $2,017.00
CO2 - additional bonds miscellaneous $10,000.00
CO3 - remobilization I landscaplnQ) $1,320.00
C04 - extra grading and haul earthwork) $18,485.50
CO5 - air vaG relocation earthwork $5,500.00
C06 - blow off relocation wet utilities $3,850.00
CO7 - sleeve relocation dry utilities $759.00
CO8 - conduit relocation dry utilities $8,550.00
COO - phone trench I dry utilities $1,452.00
CO10 - fiber optic trench dry utilities $4,500.00
CO11 - extra Qradina and haul earthwork $1,241.50
CO12 - o¡xtra irriQation work landscapinQ) $11,527.25
CO13 - relocate utilities dry utilities) $23,814.40
CO14 - suborade repair earthwork $54,138.19
CO15 - add l' asphaltl ¡pavement $1,147.50
CO16 - deduct l' base ¡pavement ($2,932.50
CO17 - delete water line wet utilities
CO18-coldmillino I avement $48,165.70
CO19 - revisions to traffic olans siQninQ and stripinQ) $2 750.00
Change order total $196,285.54
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(Eastlake Parkway to SR125)
75% Base Increment for traffic signal improvements
CFD 06-1 Reimbursement
(audit completed bv PMC on 4/5/04)
Contract Change Total Developer Audit
Hard Cost CateoolV %TDIF Amount Orders Contract Request Approved
#35 Eastlake Parkwav/Fenton Street see note 1 25% $168,850.00 $0.00 $168,850.00 $168,850.00 $168,850.00
Subtotal Hard Costs $168,850.00 $0.00 $168,850.00 $168,850.00 $168,850.00
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Developer Audit
Soft Cost Cateno'" Request Approved
Desian enaineerina (max. @ 7.5% of improvement cost $12,663.75 $12,663.75
Total Soft Costs $12,663.75 $12,663.75
Subtotal Costs $181,513.75 $181,513.75
Notes:
1. Four intersection leos:
- Eastlake Pkwy north of Fenton: eliaible for traffic sianal credit @ 25%
- Eastlake Pkwy south of Fenton: eiigible for TDIF credit at 25%
- Fenton Street: ellaible for traffic sianal credit at 25%
- Commercial access: not eligible for TDIF or TS credit
U,IPMC ProjectslChu!a VistalCFD 06-1 (Eastlake)IOlay lakes Ad Widening (Eastlake Pkwy 10 SA125)1100% reimbursement dated 5-"-O4.xls
Attachment 4: Otay Lakes Road Widenina (CFD Improvement #8)
(Hunte to Lake Crest Dr/Station 221+00)
100% Base and Retained Increments for Roadway Improvements
CFD 06-1 Reimbursement/TDIF Credit
(audit comoleted bv PMC on 5/4/04\
Contract Change Total Developer Audit TDIF
Hard Costs Amount Orders Contract Request Approved Credit
QradinQ $899,622.45 $254,557.62 $1,154,180.07 $1,117,875.99 $1,117,875.99 $1,117,875.99
sewer $123,795.00 $66,880.51 $190,675.51 $182,900.51 $182,900.51
storm drain $469,516.00 $156,990.50 $626,506.50 $629,429.50 $629,429.50 $582,557.50
ootable water $676,213.00 $46,281.65 $722,494.65 $21,840.65 $21,840.65 $5,086.65
reclaimed water $184,487.00 $34,667.80 $219,154.80 $113,787.80 $113,787.80
curb-Qutter-sidewalk $261,269.00 $5,014.43 $266,283.43 $272,290.12 $266,283.43 $266,283.43
drv utilities IIRS 5% limit - $1.679M\ $257,842.75 $11,584.63 $269,427.38 $269,427.38 $269,427.38 $267,993.38
SDG&E utilitv work (IRS 5% limit - $1.679M\ $0.00 $0.00 $0.00 $324,205.21 $324,205.21
paving, fine oradino, traffic control $850,432.50 $254,054.41 $1,104,486.91 $1,108,591.62 $1,104,486.91 $1,104,486.91
streets, sioninQ and strioino $27,179.90 $7,494.50 $34,674.40 $183,424.92 $183,424.92 $183,424.92
irrigation work bv mime contractor $0.00 $54,885.50 $54,885.50 $54,885.50 $54,885.50 $54,885.50
ROW acQuisition $0.00 $0.00 $0.00 $200,631.52 $200,631.52 $200,631.52
bonds $0.00 $0.00 $0.00 $56,473.00 $49,980.00 $49,980.00
construction loaistics/constr. water $0.00 $0.00 $0.00 $30,131.70 $30,131.70 $30,131.70
erosion control $30 000.00 $0.00 $30,000.00 $37,133.35 $37,133.35 $37,133.35
-1' Total Hard Costs $3,780,357.60 $892,411.55 $4,672,769.15 $4,603,028.77 $4,586,424.37 $3,900,470.85
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TDIF Developer Audit TDIF
Soft Costs Maximum Request Approved Credit
Desian enoineerina (max.@ 7.5% of imorovement cosH $292,535.31 $200,813.14 $200,813.14 $200,813.14
Survey and construction stakina (max @ 2% of imnrovement cost) $78,009.42 $55,629.00 $55,629.00 $55,629.00
Soils enaineerino (max @ 15% of oradino\ T $167,681.40 $113,434.06 $113,434.06 $113,434.06
Drv utility enaineerina/coordination (max @ 3% of dry utility cost) $8,039.80 $67,122.05 $17,808.98 $8,039.80
Developer administration (max @ 1.75% of hard costs\ $68,258.24 $58,774.66 $58,774.66 $58,774.66
Plan check and permit fees (actual) $224,820.69 $225,411.31 $224,820.69 $224 820.69
Total Soft Costs $839,344.86 $721,184.22 $671 ,280.53 $661,511.35
Total Costs $5,324,212.99 $5,257,704.90 $4,561,982.20
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U:IPMC ProjectslChula VistalCFD 06-1 (Eastlake)IOtay Lakes Ad Widenin9 (Hunte to Sta 221+00)1100% reimbursement summary dated 5-13-04.xls
Attachment 4:
Otay Lakes Road Widening (Hunte Pkwy to Sta 221+00)
Roadway Contracts and change orders
Hazard Construction Company
:ontracts:
Traffic Landscaping &
Improvement Roadway Signals Irrigation Total
,rading $899,622.45
:torm Drain $469,516.00
;ewer $123,795.00
Vater $676,213.00
leclaimed Water $184,487.00
)ry Utilities $257,842.75
;urb/Gutter/Waik $261,269.00
\phalt Paving $850,432.50
;ignlStrlping $18,515.90
:treets $8,664.00
:rosion Control $30,000.00
'raffic Signal (Woods Dr) $157,500.00
'raffic Signal (Vistas Entry) $157,500.00
mdscape & irrigation $1,237,015.00
:ontract Total I $3,780,357.601 $315,000.00 $1,237,015.00 $5,332,372.60
:hange Order Summary: All Change Orders Roadway Only
;01 - haul export grading $108,000.00 $254,557.62
;02 . place fill not on plan grading $30,061.26
:03 - Box Culvert Stabilization Storm Drain $31,350.00 $156,990.50
;04 - slope cuts & haul grading $36,124.35
:05 - install median drains Storm Drain $20,817.50
:06 - install traffic signal feed dry utilities $4,345.00 $11,584.63
:07 - storm drain changes Storm Drain $23,947.00
;07 - sewer changes sewer $20,680.00 $66,880.51
:07 - water changes water $33,660.00 $46,281.65
:07 - irrigation changes irrigation $38,945.50 $54,885.50
;07 - reclaimed water reclaimed water $17,545.00 $34,667.80
:08 - change to v-ditch Storm Drain $15,213.00
:09 . woods Dr Signal traffic signal $30,745.00
:010 . 24" RCP WT Storm Drain $4,675.00
;011 - 24" Tee connection water $10,835.00
:012 - quantity changes Storm Drain $12,170.00
:012 - quantity changes water $900.00
;012 - quantity changes reclaimed water $15,684.00
:013 - stub to rec center dry utilities $4,785.00
:014 - sewer changes sewer $9,932.10
:015 - expedite sewer install sewer $9,064.00
:016 - compact dirt grading $20,000.00
:017 - clean mud Storm Drain $2,464.00
:018 - trenching & conduit dry utilities $1,980.00
;019 - pavement section paving $187,201.92 $254,054.41
:020 - change curb type curb/gutter/walk $16,796.90 $5,014.43
:021 - Temp Detour paving $11,159.00
:022 - sewer changes sewer $7,443.70
;023 - Plant premuims paving deleted
:024 - install conduit irrigation $4,620.00
:025 - sleeves under sidewalk irrigation $11,320.00
:026 - export to compact grading $10,000.00
:027 - replace backflow water 4--/0 $1,485.00
:028 . clear vegetation @ pump sewer $591.00
CO29 - move air vac & blowoff
CO30 - rem/repl manhole
CO32 - changes to sewer
CO33 - install dowells
CO34 - T&M
CO35 - access road
CO37 - Farmers Blowoff
CO38 - rep! 54" RCP
CO39 - roadwork T&M
CO40 - repl traffic loops
CO41 - xtra work
CO42 - T&M traffic control
CO42 - T&M traffic control
CO43 - various T&M
CO43 - various T&M
CO43 - various T&M
CO44 - add si9nalloops
CO45 - repair light pole
CO46 - add brow ditch
CO47 - CCV ped ramp stop
CO48 - grind & place cold mix
CO49 - remove cold mix
CO50 - install M9 barricade
CO51 - raise A4 clean out
CO52 - add conduit
CO53 - repair alrvac
CO54 - airvic enclosures
CO55 - add asphalt section
CO56 - contract reconciliation
CO56 - contract reconciliation
CO56 - contract reconciliation
CO56 - contract reconciliation
CO56 - contract reconciliation
CO56 - contract reconciliation
CO57 - add signage
Change Order Total
water
sewer
sewer
curb/gutter/walk
curb/gutter/walk
paving
water
Storm Drain
grading
paving
paving
paving
paving
Storm Drain
paving
sewer
sign/striping
traffic signal
grading
curb/gutter/walk
paving
paving
striping
Storm Drain
dry utilities
reclaimed water
reclaimed water
paving
grading
water
curb/gutter/walk
paving
sign/striping
paving
sign/striping
Total Roadway Cost
if-II
$3,260.65
$5,170.00
$10,485.71
$198.00
$1,746.13
$12,540.00
$341.00
$43,949.00
$3,759.56
$5,236.00
$8,663.24
$3,320.07
$2,163.45
$1,800.00
$1,443.70
$3,514.00
$1,122.00
$939.57
$14,539.80
$1,122.00
$8,758.13
$2,675.00
$825.00
$605.00
$474.63
$415.80
$1,023.00
$1,572.00
$32,072.65
-$4,200.00
-$14,848.60
$7,834.20
$1,120.00
$1,487.70
$4,427.50
$924,O96~
$4,704,453.721
$7,494.50
$892,411.551
$4,672,769.151
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Attachment 4: Otav Lakes Road Widening (CFD Improvement #9)
(Hunte to Lake Crest Dr/Station 221+00)
75% Base and Retained Increments for Landscape & Irrigation
CFD 06-1 ReimbursemenVTDIF Credit
(audit completed bv PMC on 5/4/04)
Contract Change Total Developer Audit TDIF
Hard Costs Amount Orders Contract Request Approved Credit
landscape & irriaation $1,237,015.00 $59,735.94 $1,296,750.94 $1,296,750.94 $1,296,750.94 $1,296,750.94
Total Hard Costs $1,237,015.00 $59,735.94 $1,296,750.94 $1,296,750.94 $1,296,750.94 $1,296,750.94
TDIF
Developer Maximum Audit TDIF
Soft Costs Request Allowed Approved Credit
Landscaoe architecture Imax @ 10% of L & I cost) $129,675.09 $129,675.09 $129,675.09 $129,675.09
Developer administration (max @ 1.75% of hard costs) $22,693.14 $22,693.14 $22,693.14 $22,693.14
Total Soft Costs $152,368.24 $152,368.24 $152,368.24 $152,368.24
Total Costs $1,449,119.18 $1,449,119.18
Itachment 4: Otay Lakes Road Widening (Hunte Pkwy to Sta 221 +0
Landscape and Irrigation Contracts and change orders
Valley Crest Landscape & Irrigation
Original Contract
$1,237,015.00
Change Order Summary:
CO1 - construction plan revision
CO2 - T&M & regulators, hydroseed
CO2 - Ext maintenance
Change Order Total
$31,955.94
$20,340.00
$7,440.00
$59,735.94
/
$59,740.00
Total allowed per CCV DP
Total Contract Cost
$1,296,750.94
4-/2
Attachment 4: Otay Lakes Road WideninQ (CFD Improvement #'s 32 & 33)
(Hunte to Lake Crest Dr/Station 221+00)
100% Base and Retained Increments for Traffic Signals
CFD 06-1 ReimbursemenUTDIF Credit
(audit completed bv PMC on 5/4/04)
Contract Change Total Developer Audit TDIF
Hard Costs "IoTDIF Amount Orders Contract Request Approved Credit
#32 Traffic sianal @ Woods Drive 67"10 $157,500.00 $31,684.57 $189,184.57 $189,184.57 $189,184.57 $126,753.66
#33 Traffic sional @ Vistas entry 67"10 $157,500.00 $157,500.00 $157,500.00 $157,500.00 $105,525.00
Total Hard Costs $315,000.00 $31,684.57 $346,684.57 $346,684.57 $346,684.57 $232,278.66
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Developer Audit TDiF
Soft Costs Request Approved Credit
Desian enaineerina (max.@ 7.5% of improvement cost) $26,001.34 $26,001.34 $17,420.90
Total Soft Costs $26,001.34 ~26,001.34 $17,420.90
Total Costs $372,685.91 $372,685.91 $249,699.56
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Attachment 4: Otay Lakes Road Widening (Hunte Pkwy to Sta 221 +00)
Traffic Signals Contract and Change Orders
Contract:
Improvement
Traffic Signai (Woods Dr)
Traffic Signai (Vistas Entry)
Contract Total
Traffic
Signals
$157,500.00
$157,500.00
$315,000.00
Change Order Summary:
CO9 - Woods Dr Signal
CO45 - repair light pole
Change Order Total
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$30,745.00
$939.57
$31,684.571
$346,684.571
Total Contract and Change Order Cost
1- /5
"'ua"'lIlIeIlL ", ne;:n ..,'Y'II""" ral ...nay \'IUI..e LV ...n I "'I
100% Submittal: Audit Recommendation for CFD 06-1 Payment and TDIF Credit
--- Grading, storm drain, water, sewer, and roadway (CFD Improvement #4)
(audit completed by PMC on 5-12-04)
I
Initial TDIF Credit Final Payment Audit 100% Non-TDIF TDIF
Developer on Initial Developer Change Developer on on
Hard Costs: Reauest Submittal Request Orders Request Final Audit Final 25%
Gradino CO #'s: 36, 39, 44) $2,713,869.55 $2,713,869.55 $47,653.08 $45,448.00 $2,761,522.63 $47,653.08
Curb/GutterlWalk (CO #'s: 27, 28, 34, 37, 44) $404,112.87 $404,112.87 $67,760.23 $46,169.73 $471,873.10 $67,760.23
SiQnil1wStripinQ (CO #'s: 23, 40, 13) $98,088.27 $98,088.27 $23,665.46 $15,746.17 $121,753.73 $766.17 $22,899.29
PavinQ (CO#'s:29,35,41,42,47,12,14,15) $2,425,402.67 $2,425,402.67 $780,140.72 $382,578.66 $3,205,543.39 $780,140.72
Drv Utilities ( CO #'s: 8, 9, 22, 43) $510,742.65 $61,881.55 $54,550.00 $572,624.20 $61,881.55
Storm Drain (CO #'s: 25, 27, 28) $1,338,260.94 $1,338,260.94 $44,347.68 $33,113.98 $1,382,608.62 $44,347.68
Sewer (CO #'s: 15, 16, 17, 18,24,26,27,28,32) $705,497.83 $182,939.48 $705,497.83 $705,497.83
Water (CO #'s: 27, 28, 35) $36,116.31 $20,807.34 $36,116.31 $36,116.31
Reclaimed Water $4,984.74 $4,984.74 $4,984.74
Pipeline Encasement (CO #: 45) $615,654.95 $615,654.95 $5,743.00 $5,743.00 $621,397.95 $5,743.00
SDG&E $254,369.00 $254,369.00
Traffic Control (CO#'s: 38, 41,48) $214,160.01 $214,160.01 $214,160,01,
Erosion Control (CO #: 30) $112,342.30 $112,342.30 $33,502.99 $664.00 $145,845.29 $33,502.99
Construction LoQistics (CO #: 35) $39,224.38 $2,564.00 $39,224.38 $39,224.38
Street liahts $116,736.30 $116,736.30 $116,736.30
Total Hard Costs $8,589,579.50 $7,824,467.85 $2,064,677.98 1- $1,004,484.35 $10,654,257.48 $809,246.60 $1,255,431.38
Soft Costs: TDIF/CFD Maximum % TDIF/CFD Max $
Bonds 100% $73,728.75 $73,728.75 $35,591.00 $35,591.00 $109,319.75 $35,591.00
Civil Enaineerina 7.5% of improv. Cost $596,783.95 $596,783.95 $27,854.93 $94,157.35 $624,638.88 $27,854.93
Soils EnQineerinQ 15% of QradinQ $267,288.25 $267,288.25 $76,040.23 $7,147.96 $343,328.48 $68,892.27 $7,147.96
Survey & StakinQ 2% of improv. Cost $175,673.76 $164,513.47 $28,186.96 $25,108.63 $203,860.72 $11,160.29 $17,026.67
Drv Utility Enaineerina 3% of dry utilities $18,824.37 $3,502.09 $2,797.84 $1,856.45 $21,622.21 $1,856.45
Environmental/ROW 100% $31,541.07 $31,541.07 $1,162.80 $1,162.80 $32,703.87 $1,162.80
City Insoection 100% $367,638.53 $367,638.53 $367,638.53
Project ManaQement 1.75% of hard cost $153,714.54 $143,949.29 $158,898.24 $153,714.54
Permits/Fees 100% $0.00 $50,766.65 $50,766.65 $50,766.65 $50,766.65
Total Soft Costs $1,685,193.22 $1,648,945.40 $222,400.41 $374,689.08 $1,907,593.63 $81,909.00 $139,550.01
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Total Hard & Soft Costs $10,274,772.72 $9,473,413.25 $2,287,078.39 $12,561,851.11 $891,155.60 $1,394,981,39't
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Attachment 5: West Olympic Parkway (Hunte to SR125)
Grading, storm drain, water, sewer, and roadway improvements
Change Order Summary
100% Submittal: Audit Recommendation for CFD 06-1
(CFD Improvement #4)
Non-TDIF TDIF Total
Change Order Change Order Change Order
Improvement Change Order #'s Summary Summary Summary
Grading 36, 39, 44 $45,448.00 $45,448.00
Curb/GutterlWalk 27,28,34,37,44 $46,169.73 $46,169.73
Sign/Striping 23,40,13 $15,746.17 $15,746.17
Paving 29,35,41,42,47,12,14,15 $382,578.66 $382,578.66
Dry Utilities 8,9,22,43 $54,550.00 $54,550.00
Storm Drain 25, 27, 28 $33,113.98 $33,113.98
Sewer 15,16,17,18,24,26,27,28,32 $182,939.48 $182,939.48
Water 27,28,35 $20,807.34 $20,807.34
Reclaimed Water $0.00
Pipeline Encasement 45 $5,743.00 $5,743.00
SDG&E $0.00
Traffic Control 38, 41, 48 $214,160.01 $214,160.01
Erosion Control 30 $664.00 $664.00
Construction Logistics 35 $2,564.00 $2,564.00
Traffic Signals $0.00
Street lights $0.00
Totals $258,296.81 $746,187.54 $1,004,484.35
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Attachment 5: West Olympic parkWay (Hunte to SR125)
75% Base Increment: Audit Recommendation for CFD 061 Payment and TDIF Credit
Landscaping and Irrigation (CFD Improvement #5)
(audit completed b PMC on 5-12-04)
Base Increment Non-TDIF TDIF
Contract Change Developer on on
Hard Costs: Amount Orders Request Base Increment Base Increment
Landscape (CO #'s: 1-14,31,33) $ 2,247,948.15 $301,220.66 $2,549,168.81 $132,266.50 $2,416,902.31
Irrioation $52,994.11 $52,994.11
Water Meters $319,071.00 $319,071.00
Total Hard Costs $ 2,247,948.15 $301,220.66 $2,921,233.92 $132,266.50 $2,788,967.42
....
Soft Costs: TDiF Max. % TDIF Max. $
Landscape Arch. 10%ofL&1 $278,896.74 $136,674.04 $13,226.65 $123,447.39
Total Soft Costs $278,896.74 $136,674.04 $13,226.65 $123,447.39
Total Hard & Soft Costs $3,057,907.96 $145,493.15 $2,912,414.81
Attachment 5: West Olympic Parkway (Hunte to SR125)
Landscaping & Irrigation (CFD Improvement #5)
Change Order Summary
75% Base Increment: Audit Recommendation for CFD 06-1
(audit completed by PMC on 5-12-04)
Improvement
Landscaping & irrigation (CO #'s: 1-14,31,33)
Totals
Non-TDIF TDIF
Change Order Change Order
Summary Summary
$18,390.00 $ 282,830.66
$18,390.00 $282,830.66
Total
Change Order
Summary
$301,220.66
$301,220.66
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Attachment 5: West Olympic Parkway (Hunte to SR125)
75% Base Increment for traffic signals (CFD Improvement #'s 21, 23-26, 40)
CFD 06-1 ReimbursementfTDIF Credit
(audit completed by PMC on 5/6/04)
100%
TDIF
Credit
$1ii5;244.00
"$205;'150:ÕÖ'
."..120;ïišo:.õö.
"OO:.ÕO"
'Úi:.öo
-+=-
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Notes: 1. Amount of traffic signal interconnect cost spread to each signal based on signal cost to total cost
2. % of signal cost that is TOIF-eligible depends on the number of legs at the intersection that are TOIF facilities
3. original contract ($185,244) was for Hunte Pkwy signal only. Change order #1 for additional four signals in the amount
of $775,100 was previously approved by Council.
4. amount of work completed per item on submitted invoices assigned to each item by Eastlake Company OS/20/03
5. soft costs equal to 7.5% of hard costs
6. Costs eligible for Traffic Signal credit are not eligible for CFO funding.
Attachment 5: WEST OLYMPIC PARKWAY (HUNTE TO SR125)
CHANGE ORDER SUMMARY
I CONTRACT
IMPROVEMENTS - SDG&E EASEMENT TO HUNTE PARKWAY (CIVCOM PORTION) SUMMARY
CONTRACT NO. 5724 - HANSON SJH CONSTRUCTION
ITEM DATE DESCRIPTION AMOUNT
Contract loriainal\ 01/16/2002 Oriainal scope of Improvements $ 2,911,004.26
Change Order #8 Dry Improvements - SDG&E to sta 256+65 (c/o 2)
- Dry Utility changes to approved Clan from bid set $ 38,036.40 $ 38,036.40
Change Order #9 Dry Improvements - SR125 to Sta 256+65 (c/o 1)
- Dry Utility chances to approved plan from bid set $ 11,182.60 $ 11,182.60
Chance Order #15 Sewer Improvements - Hunte to SDG&E
- revise force main cleanout specs per CCV $ 97,874.00 $ 97,874.00
Change Order #16 Sewer Improvements - SDG&E to Sta 256+65
- revise force main cleanout specs per CCV $ 23,694.00 $ 23,694.00
Change Order #17 Wet Utility Changes - SR125 to Sta 256+65
- revise sewer quantities $ (23,475.00 $ (23,475.00)
Change Order #18 Wet Utility Chances - SDG&E to Sta 256+65
- sewer revise quantities $ 24,516.00 $ 24,516.00
change order #22 Dry Utility Improvements - SR125 to Sta 256+65 (c/o 1)
- cut top section in 2 handhole boxes $ 1,134.00 $ 1,134.00
chanQe order #23 Sign & StripinQ Improvements - Hunte to SDG&E
- road sign required by CCV $ 3,640.00 $ 3,640.00
J' change order #24 Sewer Improvements - Hunte to SDG&E
- sewer air vac assembly per special design $ 15,815.00 $ 15,815.00
\ change order #25 Wet Improvements -
~ - storm Drain adj manholes, install median drain, raise f-box $ 22,375.50 $ 22,375.50
-.!... change order #26 Sewer Improvments - Hunte to SDG&E
- sewer force main connection to emergency pump connection $ 27,588.00 $ 27,588.00
change order #27 Improvements-SR125 to Sta. 256+65.62 (c/o 1)
- authorized OT curb/gutter, sewer, storm drain, water $ 12,114.20 $ 12,114.20
chance order #28 Improvements - Sta 256+65 to SDG&E (c/o 2)
- authorized OT curb/gutter, sewer, storm drain, water $ 30,839.70 $ 30,839.70
chance order #29 Asphall Pavina Improvement - Sta 256+65 to SDG&E (c/o 2)
- balance and haul excess dirt $ 265,277.00 $ 265,277.00
change order #30 Erosion Control - repair storm damage $ 664.00 $ 664.00
chanQer order #32 Sewer Improvments - Hunte to SDG&E
- vacuum sewer pump for connection required by CCV $ 6,189.00 $ 6,189.00
chanQe order #34 Curb/Gutter/Walk Improvements - Hunte to SDG&E
- reolace sidewalk due to realignment $ 30,225.50 $ 30,225.50
chance order #35 Improvement extras - Hunte to SR125
share/contractslpublic/wop/WOP 25% Change Order SUMMARY 5-18-04, CHANGE ORDER SUMMARY
Page 1 018
Revised: 06/01/2004,5:13 PM
Attachment 5: WEST OLYMPIC PARKWAY (HUNTE TO SR125)
CHANGE ORDER SUMMARY
CONTRACT
- asphalt pavin!! grind for finish cap & tie in areas $ 87,616.50 $ 87,616.50
- water - digouttie in areas $ 10,068.86 $ 10,068.86
- construction 1000istics clean all areas of job $ 2,564.00 $ 2,564.00
change order #36 Grading Improvements
- fine grade slopes and DG trail & sidewalk $ 19,992.00 $ 19,992.00
change order #37 Curb/gutter/walk Improvements - Hunte to SDG&E
- remove & replace for lateral installation $ 1,552.50 $ 1,552.50
change order #38 Traffic control for facility completions
- sewer/storm drain lane closures for manhole raises & other $ 83,166.61 $ 83,166.61
change order #39 Grading Improvements
- fine grading - DG trail $ 22,384.00 $ 22,384.00
change order #40 Sign & Striping Improvements - Hunte to SDG&E
- additional street name signs $ 11,340.00 $ 11,340.00
change order #41 Improvements - Hunte to SDG&E
- Paving - patching for water tie-ins $ 5,758.52 $ 5,758.52
- Traffic control for patching of tie-ins $ 24,511.00 $ 24,511.00
chan!!e order #42 Asphalt Pavin!! - raise appurtenances to finish street !!rade $ 8,183.00 $ 8,183.00
change order #43 Dry Utility ImDrovements - Hunte Pkwy to SDG&E
- signal pullbox repairs $ 4,197.00 $ 4,197.00
change order #44 Grading Improvements $ 3,072.00 $ 3,072.00
Curb/GutterlWalk ImDrovements - Hunte to SDG&E $ 3,653.25 $ 3,653.25
chan!!e order #45 Improvements - Hunte to SDG&E
- Swing Gates for County Water authority easement $ 5,743.00 $ 5,743.00
change order #47 Install 3 additional survey monuments $ 1,156.00 $ 1,156.00
change order #48 Traffic control for all contractors working on Olympic Pkwy $ 106,482.40 $ 106,482.40
Total Change Orders less landscapinQ & irrigation $ 989,130.54 $ 989,130.54
Total change order cost at 25% submittal $ 989,130.54
Total change order cost allowed per CCV D&P $ 93,220.00
TOTAL $ 4,889,265.34
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sharelcontracts/publiclwop/WOP 25% Change Order SUMMARY 5-18-04, CHANGE ORDER SUMMARY
Page2of8
Revised: 06/01/2004, 5:13 PM
Attachment 5: WEST OLYMPIC PARKWAY (HUNTE TO SR125)
CHANGE ORDER SUMMARY
I CONTRACT
I I
I I
IMPROVEMENT. STA. 256+65.62 TO SDG&E EASEMENT (HUNSAKER PORTION)
CONTRACT NO. 5741 . HAZARD CONSTRUCTION CO.
ITEM DATE DESCRIPTION AMOUNT
Contract Oriainal Oriainal ScoDe of ImDrovements $ 1,437,193.34
ChanQe Order #12 AsDhalt Paving for median relocation $ 3,482.84
Change Order #13 Slanina! Striping OT $ 766.17
Change Order #14 Asphalt PavinQ - cleaninQ for final cap of AC $ 1,666.60
Change Order #15 Asphalt Pavina - saw cut transition joints for final cap $ 9,438.20
$ 15,353.81
Total chance order cost at 25% submittal $ 15,353.81
Total chance order cost allowed per CCV D&P $ 63,743.88
TOTAL --. $ 1,004,484,35 $ 1,467,900.96
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share/contracts/publiclwop/WOP 25% Change Order SUMMARY 5-18-04, CHANGE ORDER SUMMARY
Page30f8
Revised: 06/01/2004, 5:13 PM
Attachment 5: WEST OLYMPIC PARKWAY (HUNTE TO SR125)
CHANGE ORDER SUMMARY
CONTRACT
.$
LANDSCAPE & IRRIGATION IMPROVEMENTS - HUNTE PKWY TO SR-125
CONTRACT NO. 5774 - VALLEY CREST LANDSCAPE DEVELOPMENT
ITEM DATE DESCRIPTION AMOUNT
Contract Oriainal Oriainal Scope of Improvements Non-TDIF $ 2,361,824.65
Change Order #1 Deduct & add irrigation heads per ccv $ 10,846.89
Change Order #2 Install driveable concrete across median $ 10,697.92
ChanQe Order #3 Deduct Controllers $ (6,302.00)
Change Order #4 Additional Median landscaping work $ 6,425.10
Chanae Order #5 Traffic Control costs in excess contract $ 18,540.00
Change Order #6 May '03Traffic Control costs in excess contract $ 31,290.00
Change Order #7 July '03 Traffic Control costs in excess contract $ 31,290.00
Change Order #8 Construction Plan revisions $ 48,089.75
Change Order #9 June '03 Traffic Control costs in excess contract $ 31,290.00
Change Order #10 Add boulders @ SDCWA easement gates $ 2,320.00
Change Order #11 Aug '03 Traffic Control costs in excess contract $ 31,290.00
Change Order #12 Sept '03 Traffic Control costs in excess contract $ 14,900.00
Change Order #13 T&M Greens slopes repair, irrigation sleeve & reaulator install, $ 18,390.00 $ 11,447.00
Change Order #14 Add controllers $ 29,137.00
t Total change order cost at 25% submittal $ 271,261.66
Total change order cost allowed per CCV D&P
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\J change order #31 Landscaping Improvements - 256+65.62 to SDG&E (c/o 2)
....r- - install 2" irrigation sleeves $ 2,472.00
change order #33 Landscaping Improvements - SR125 to sta 256+65 (c/o 1)
- install irrigation sleeves $ 9,097.00
Total Landscaping and Irrigation $ 18,390,00 $ 282,830,66
$ 2,904,347.97
.. $ 301,220.66
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share/conlraCls/public/wOp/WOP 25% Change Order SUMMARY 5- 18-04, CHANGE ORDER SUMMARY
Page4of8
Revised: 06/01/2004, 5:20 PM
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING CHANGE ORDERS REQUESTED BY THE
EASTLAKE COMPANY, LLC FOR OTAY LAKES ROAD AND
OLYMPIC PARKWAY
WHEREAS, CFD 061 was established in September 2002 to finance infrastructure related
to several Eastlake projects; and
WHEREAS, Eastlake has completed additional improvements and is requesting
reimbursement from CFD 061 for eligible costs. Contained within these requests were a series of
change orders that require Council approval, prior to making payment, based upon the guidelines
of the Acquisition/Financing Agreement for CFD 061 and the City's Directives and Procedures
for TDIF Reimbursement/Credit; and
WHEREAS, Council previously approved change orders in the amount of $1,946,500 for
Olympic Parkway in order to ensure the timely opening of Olympic Parkway through the SR 125
corridor; and
WHEREAS, staff recommends that Council approve an additional $2,485,800 in change
orders associated with Otay Lakes Road/Eastlake Parkway Widening, Otay Lakes Road (east of
Hunte Parkway) and Olympic Parkway. This will accomplish the following:
. Approve the nineteen (19) change orders for Otay Lakes Road between Eastlake
Parkway and SR125 (and including Eastlake Parkway between Otay Lakes Road
and Fenton Street).
. Approve the fifty-seven (57) change orders for Otay Lakes Road between Hunte
Parkway and Station 221 +00.
. Approve the fifty (50) change orders for West Olympic Parkway between Hunte
Parkway and SR125.
Enable these change orders to be financed from CFD No. 06-1 and enable TDIF
credit to be awarded for the amount of the TDIF-eligible change orders.
According to the Municipal Code, the City Engineer determines the final TDIF-
eligible amount.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby approve change orders requested by The Eastlake Company, LLC for Otay Lakes
Road and Olympic Parkway.
Jack Griffin
Director of General Services
Approved as to form by
/fJ Þ7-~ft:. )
Ann Moore
City Attorney
Presented by
J:\attomeylresolfinance\ change orders Otay Lakes Rd
if -:;¿.~
COUNCIL AGENDA STATEMENT
Item 5""
Meeting Date 6/15/04
ITEM TITLE:
Resolution approving the Engineer's Reports for the FY 2004/05
spread of assessments for Open Space Districts I through 9, 15, 17, 18,20,23,24,
26, 31 and 33, Bay Boulevard and Town Centre Maintenance Districts; declaring the
intention to levy and collect assessments; and setting a public hearing regarding these
assessments
SUBMITTED BY: Director of General Services / City Engineer g(
REVIEWED BY: City Manager ~ y ~
(4/5ths Vote: Yes_No-X)
The City administers and maintains twenty-four (24) Open Space Districts that have been established over
the last thirty years. The Districts provide a fmancing mechanism to maintain the public open space areas
associated with each particular development. The levy of an annual assessment for FY 2004/05 will enable
the City to collect sufficient funds to provide these ongoing services.
RECOMMENDATION: That Council adopt the resolution, and set the public hearing for July 20, 2004
at 6:00 p.m.
BOARDS/COMMISSIONS: N/A
DISCUSSION:
Open Space Districts (OSD's) were established in conjunction with each particular development to ensure
financing for the perpetual maintenance of common open space areas. OSD' s provide a mechanism for the
City to levy an annual assessment and collectible to cover the costs of maintenance associated with each
OSD. Once City Council approves the annual collectible amount, it is sent to the County for inclusion on
the tax bill.
Each year Council must take two actions before levying the annual assessment. First, Council approves the
Engineer's Report on Open Space Districts, declares its intention to levy the annual assessment, and sets the
date and time for a public hearing. The second action is to conduct the public hearing, take and consider
public testimony, and levy the annual assessment and set the amount to be collected against the assessment.
Tonight's action is the first step in this process.
Pursuant to state law and the Municipal Code, the City Engineer has prepared and filed annual reports for all
existing Open Space Districts which are included as Attachments I and 2 to this report. The annual reports
allow Council to review the history of the Open Space Districts. The report includes information regarding:
the proposed budgets
funds remaining in the account
the proposed assessment (based upon the prior year assessment plus an inflation factor)
the collectible (the amount needed from each property owner to provide sufficient funds for
the following fiscal year's maintenance)
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Page 2, Item ç
Meeting Date 6/15/04
Table I lists the names and locations of the Districts. Note that separate resolutions include action on OSD
10, 11, 14 and Eastlake Maintenance District No.1.
Table 1. Open Space Districts Within the City of Chula Vista
OSD# Name Location
1 El Rancho del Rev Units 1-4 Bet. East H Street & Tele~raoh Canvon Road, east of Pas eo Ranchero
2 Lark Haven South and east ofLoma Verde Park
3 Rancho Robinhood Units I & 2 South of Allen School Lane.
4 Bonita Ridge Camino Elevado north ofOtav Lakes Road
5 Southbav Villas North end of Crest Drive south orE Street
6 Hilltop Vista Camino Vista Real north of Telegraph Canyon Road
7 Zenith Units 2, 3, and 4 North & south of Palomar, east of 1-805
8 Rancho Robinhood Unit 3 Surrey Drive southwest ofOtay Lakes Road
9 El Rancho del Rev Paseo del Rev, north of Telegraoh Canvon Road
10 El Rancho del Rev 6, Casa del Rev West of Pas eo Ranchero - H & J Streets
11 Hidden Vista Village East H Street, east of 1-805
14 Bonita Long Canvon North of East H Street - Otay Lakes Road & Corral Canvon Road
15 Bonita Haciendas Canyon Drive, east ofOtav Lakes Road
17 Bel Air Ridge Northeast of Pas eo Ladera & East J Street
18 Rancho del Sur East end of East Naples Street
20 Rancho del Rev North of East H Street, west ofOtav Lakes Road
23 Otav Rio Business Park West of Heritage/Otav Vallev Road, south ofOtav Rio Road
24 Canyon View Homes Rutoers A venue, south of East H Street
26 Park Bonita West of the intersection orE Street & Bonita Road
31 Telegraph Canvon Estates North ofOtay Lakes Road, west ofSR-125
33 Broadwav Business Home Villa~e West side of Broadwav - J & K Streets
Eastlake Maintenance District No.1 Eastlake 1, Eastlake Greens, Salt Creek 1, OTC,
- Bav Boulevard Maintenance District Bav Boulevard - E & F Streets
- Town Centre Maintenance District Third Avenue - E & G Streets
Assessments & Collectibles
The City ofChula Vista Municipal Code makes the distinction between the assessment and the amount that
the City may collect against the assessment (i.e., the collectible). The assessments for FY 2004/05 are
proposed at FY 2003/04 amounts adjusted by the inflation factor of2.2% pursuant to the Municipal Code.
(The inflation factor is based upon the lower of two separate, published inflation factors.) 10 the mid 1990's
(and for all Open Space Districts established after that date), Council approved the assessments with an
inflation factor. Since that date, Council may annually increase the assessment by this inflation factor
without this increase being subject to a protest yote. The collectible, on the other hand, is the amount to be
actually collected from the property owner and is equal to or lower than the proposed assessment. As
detailed in Attachment 2, the collectible is based on the budget, the reserve requirement, savings and fund
balances, earned interest, and prior years' sayings.
6-;}...
Page 3, Item 5'"
Meeting Date 6/15/04
The proposed assessments and collectibles for FY 2004/05 are as follows:
Table 2. Historical and Proposed FY 2004/05 Assessments/Collectibles
Proposed Proposed
FY 02/03 FY 03/04 FY 03/04 FY 04/05 FY 04/05
OSD/Zone Assmnt! Collectible Assmnt! Assessment Collectible FY 04/05
EDU EDU EDU ner EDU (1) oer EDU Revenue
1 $99.70 $97.00 $101.20 $103.43 $72.00 $47,648
2 46.26 45.00 46.95 47.99 47.00 11,703
3 316.63 299.00 321.38 328.45 328.00 41,656
4 334.44 337.00 339.46 346.93 328.00 68,880
5 326.13 287.00 331.02 338.30 289.00 35,258
6 161.27 110.00 163.69 167.29 96.00 15,552
7 112.66 97.00 114.35 116.87 116.00 12,064
8 514.67 451.00 522.39 533.89 455.00 50,050
9 145.86 145.00 148.05 151.31 151.00 57,984
15 307.19 276.00 311.80 318.66 318.00 18,126
17 147.05 23.00 149.25 152.54 96.00 4,416
18 347.48 268.00 352.69 360.45 305.00 132,675
20 - - - - 1,016,123
Zone I - Desilting Basin 53.70 4.26 54.51 $55.71 $6.00 (2)
Zone 2 - Rice Canyon 4.08 4.14 4.14 4.23 4.20 (2)
Zone 3 - H Street 5.81 4.23 5.90 6.03 5.00 (2)
Zone 4 - Business Centre 21.63 21.81 21.95 22.43 22.00 (2)
ZoneS-SPA 1 326.29 302.18 331.18 338.47 338.00 (2)
Zone 6 - SPA 11 250.71 146.93 254.47 260.07 186.00 (2)
Zone 7 - SPA III 154.76 155.35 157.08 160.54 160.00 (2)
Zone 8 - North Desilting Basin 35.67 35.44 36.21 37.01 32.00 (2)
Zone 9 - Telegraph Canyon Channel 28.33 22.57 28.75 29.38 29.30 (2)
23 478.84 486.00 486.02 496.72 496.00 44,670
24 595.33 485.00 604.26 617.55 562.00 22,480
26 467.24 236.00 474.25 484.69 351.00 6,669
31 482.66 364.00 489.90 500.68 351.00 121,095
33 1,192.84 0.00 1,210.73 1237.36 0.00 0
Bay Boulevard v) 875.37 2.35 888.50 908.05 908.00 5,802
Town Centre ,4) $0.00 0.00 0.100168 .102372 0.00 0
1\1) Assessment may be set at or below this amount without being subject to a vote and majority protest.
(2) Revenue for all zones included in overall District 20 amount.
(])Bay Boulevard rates based on acres since FY 2001/02.
(4) Town Centre rates based on parcel square footage since FY 2001/02.
Budgets
In general, most expenditure budgets have increased due to projected water rate increases and adjustments to
city staff service costs as a result of cost of living increases and the addition of costs for Engineering staff
services.
5-3
Page 4, Item ~
Meeting Date 6/15/04
For several districts (OSD's 2,3,7,9,15,20,23, and Bay Boulevard) expenditures will exceed the amount
of revenue that can be generated by the proposed assessment. However, the availability of sufficient
reserves for most of these districts will ensure that the City will provide the required maintenance during FY
2004/05. For these districts, it is recommended that staff carefully monitor the budget process during the
next budget cycle to ensure Council is able to continue to collect sufficient funds for the proposed
maintenance. Eventually, budgeted expenditures for maintenance of these districts will need to be reduced
or the property owners will have to approve, by ballot, an increase in their assessments to cover
expenditures.
Reserves
While staff recommends using savings from prior years when necessary to supplement collections, it is
important to note that staff also strives to maintain at least a 50% reserve. The Municipal Code allows
reserves between 50%-100%. A minimum of 50% reserve is needed to provide the funds to pay for costs
during the first six months of the fiscal year before the collectibles have been paid via the first installment of
the tax bill. Reserves in excess of 50% are used, in part, to maintain as stable a collectible as practicable
while retaining sufficient funds to offset future anticipated increases. Reserves also allow the City to return
excess funds to property owners in the form of a lower collectible. Reserve rates below 50% are not
typically recommended; however, staff does recommend temporary reductions in the reserves for OSD 3 and
OSD 23.
Proposed Proposed
FY 02/03 FY 03/04 FY 03/04 FY 04/05 FY 04/05
OSD3 Assmot! Collectib1el Assmotl Assmot! Collectible! FY 04/05
EDU EDU EDU EDU EDU Revenoe
Rancho Robinhood Units 1 & 2 $316.63 $299.00 $321.38 $328.45 $328.00 $41,656
Staff recommends that the assessment remain the same as FY 2003/04 plus the inflation factor of2.2% and
that the full assessment (rounded to $328) be collected. This will provide revenue in the amount of$41 ,656.
However the revenue needed for the budget is $47,944. To make up the difference, staff recommends using
the reserve, thus lowering it to 34%. This approach is a temporary solution until such time as staff analyzes
possible expenditure reductions. These may include advertising for a new contractor and/or streamlining the
budget to more accurately reflect actual costs. If staff cannot accomplish a cost reduction, other alternatives
could include selected service reductions or approval by the property owners (approximately 127) of an
assessment increase based upon current needs.
Proposed Proposed
FY 02/03 FY 03/04 FY 03/04 FY 04/05 FY 04/05
OSD 23 Assmotl Collectiblel Assmot! Assmot! Collectible! FY 04/05
EDU EDU EDU EDU EDU Reveooe
Otay Rio Business Park $478.84 $433.00 $486.02 $496.72 $496.00 $44,670
Staff recommends that the assessment remain the same as FY 2003/04 plus the inflation factor of2.2% and
that the full assessment (rounded to $496) be collected. This will provide revenue in the amount of$44,670.
However the revenue needed for the budget is $48,442. To make up the difference, staff recommends using
the reserve, thus lowering it to 39%. Staff believes this is appropriate because the current budget includes a
5-tf
Page 5, Item :;-
Meeting Date 6/15/04
one-time cost of approximately $4,000 for professional services that is a carryover from prior budget years.
This one-time cost is for legal services associated with the changes made to the district in 2002. Legal
counsel has not billed for this service to date. If counsel does not bill for this services this year, there will be
sufficient savings resulting in a reserve of approximately 50%. It should be noted that once the payment for
these services has been made, then the expenditure budget should be reduced accordingly in subsequent
years.
Other District Issues
Three other districts of special note - Open Space Districts 20 and 33, and Town Centre - are discussed
below.
OSD 20: Established in 1989, Rancho del Rey is a phased development of three Sectional Planning
Areas (SPAs). The district was created to encompass all three areas with the understanding that the open
space improvements would be constructed in phases. Because this is a large district and not all of the items
to be maintained have a benefit to the entire district, OSD 20 is made up of several zones (see Table 2).
Every property within the district is in more than one zone.
OSD 20 Typical Combined Assessment (FY2004/05)
SPA 1 IZones 1 or8,2,3,&5) $350
SPAll(Zones 1 or8,2,3,&6) $200
SPA III (Zones 1 or9, 3, & 7) $170
Business Centre (Zones 1,2,3, & 4) ,
'Industrial (Der acre) $880
Staff recommends that the assessment remain the same as FY 2003/04 plus the inflation factor of2.2%. For
zone I and zones 3-9, staff recommends collecting an amount equal to or less than the assessment. Forthese
zones, the reserves range from 50% to 83%. For zone 2 (Rice Canyon Recreation area), collecting the full
assessment amount is not sufficient to cover the maintenance and there are not sufficient reserves to cover
the cost of next year's estimated maintenance. In the past, the budget needs for zone 2 have been met with
surplus funds; however, there are no longer sufficient funds to offset the entire shortfall. Therefore, staff
will need to reduce the budget, and possibly reduce services, during the next budget cycle. Alternatively,
property owners would need to approve an increase in their assessment by majority vote in order to cover the
proposed service costs. To cover the budget shortfall for this year, staff is exploring the feasibility of
borrowing funds from another zone (with interest) to cover the maintenance of Zone 2. This will be more
fully explored before the public hearing. The shortfall of funds is approximately $5,600 for FY 2004/05.
The proposed FY 2004/05 budget for Zone 2 is $37,623 and the maximum revenue generated from Zone 2
assessments is $16,700.
OSD 33: Open Space District 33, Broadway Business Homes, was formed several years ago in
anticipation of development of the parcel. The project has not progressed and consequently there is no
maintenance required. Each year staff recommends adjusting the assessment by the inflation factor and not
collecting money against that assessment. Should the project develop in the future, staff would recommend
collecting money for maintenance.
5-5
Page 6, Item 5'
Meeting Date 6/15/04
Town Center LMD: A Downtown Property and Business Improvement District (PBID) replaced
Town Centre Landscape Maintenance District (LMD) in 200 1. At that time, it was anticipated that the Town
Centre LMD would be dissolved. However, the City determined that there was some potential long-term
exposure for the City based on the remote possibility that the current PBID might not receive sufficient
support for re-approval in 2006 for its next flYe-year period. Should the PBID not be re-approved, and if the
Town Centre LMD is dissolved, there would no longer be a funding mechanism for downtown landscape
maintenance.
Based on this possibility, the Town Centre LMD is kept open as a "ghost" district. This means that the City
will set the maximum assessment amount for the District on an annual basis, even though property owners
will not be billed any sum on the tax roll. Should the PBID not be re-approved, the Town Centre LMD will
be in place and provide the necessary funding mechanism for downtown landscape maintenance. The
assessment amount for FY 2004/05 is $0.102372 per square foot (based on the last approved assessment of
$0.100168 per square foot of parcel area plus an inflation factor of2.2%).
Notice
The public hearing will be noticed pursuant to Government Code 6061, which requires that notice be
published in a newspaper of general circulation at least 10 days before the public hearing. Plans,
specifications, and assessment rolls are on file in the General Services office.
Resolution
The City Engineer has prepared and filed reports on assessments for all existing Open Space Districts. The
above resolution approves the reports and sets the date and time for a public hearing to consider the levy of
assessments and the collection of funds.
FISCAL IMP ACT: The total the General Fund reimbursement for City staff services from the above listed
OSD funds for FY 2004/05 is estimated to be $325,014 (excluding OSD 10, 11, 14 and Eastlake
Maintenance District I). The General Services Department, including Engineering, Public Works
Operations and Parks Open Space, the Finance Department, and MIS, all generate staff costs associated with
the Open Space program. Contractual and other maintenance costs totaling $2,031,768 are outlined in
Attachment 2. These costs are recovered through the OSD collectible and reserves, causing no net fiscal
impact.
Attachments:
I. District Maps
2. Cost Summary
J: IEngin..,IAGENDA 10SDisisA I FYl4-05.ds.cb.doc
File: 0725-30-0SDOO
5-6
ATTACHMENT 1
DISTRICT MAPS
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ATTACHMENT 2
COST SUMMARIES
5-;;;8
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 1 OF 7
~
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Open Space District # 1 2 3
EI Rancho del Rey Units 1-4 Lark Haven Rancho Robinhood Units 1 & 2
FISCAL YEAR 2004/2005 2003/2004 200212003 2004/2005 2003/2004 2002/2003 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges $ 716.00 $ 704.00 $ 643.00 $ 228.00 $ 224.00 $ 205.00 $ 835.00 $ 821.00 $ 750.00
Trash Coliection & Disposal Fees 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00 1,400.00
Water Charges 23,591.00 22,793.00 22,022.00 2,874.00 2,777.00 2,683.00 16,080.00 15,536.00 15,011.00
Services to maintain structures, grounds 770.00 770.00 770.00 1,110.00 1,110.00 1,110.00 490.00 490.00 490.00
City Staff Services 10,323.00 8,673.00 9,471.00 2,962.00 1,825.00 2,010.00 8,595.00 7,065.00 7,726.00
Contract Services 17,390.00 17,390.00 16,314.00 4,632.00 4,632.00 4,345.00 16,265.00 16,265.00 15,258.00
Landscape Supplies 980.00 980.00 980.00 337.00 337.00 337.00 207.00 207.00 207.00
Materials to maintain structures, grounds 1,040.00 1,040.00 1,040.00 380.00 380.00 380.00 800.00 800.00 800.00
Backflow Certification
Professionai Services 1,600.00 1,600.00 1,600.00 400.00 400.00 400.00 2,400.00 2,400.00 2,400.00
Supplementais 360.00 360.00 360.00 40.00 40.00 40.00 400.00 400.00 400.00
Other commodities
Advertising
Transfer: Corporate Yard Debt Service 580.00 576.00 1,223.00 122.00 121.00 258.00 472.00 469.00 971.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 58,750.00 $ 56,286.00 $ 55,823.00 $ 13,085.00 $ 11,846.00 $ 11,768.00 $ 47,944.00 $ 45,853.00 $ 45,413.00
Reserve Requirement (1) $ 49,938.00 $ 42,215.00 $ 30,703.00 $ 10,468.00 $ 9,477.00 $ 8,591.00 $ 16,205.00 $ 23,385.00 $ 26,340.00
Reserve Percent 85% 75% 55% 80% 80% 73% 34% 51% 58%
Additional Reserve -
Fund Balance (2) 60,923.00 34,185.00 22,402.00 11,844.00 10,136.00 8,897.00 22,496.00 31,213.00 33,757.00
NET ASSESSMENT (3) $ 47,765.00 $ 64,316.00 $ 64,124.00 $ 11,709.00 $ 11,187.00 $ 11,462.00 $ 41,653.00 $ 38,025.00 $ 37,996.00
Equivalent Dwelling Units (EDU's) 661.79 661.79 661.79 249.00 249.00 249.00 127.00 127.00 127.00
ColiectibielEDU $ 72.18 $ 97.18 $ 96.89 $ 47.02 $ 44.93 $ 46.03 $ 327.98 $ 299.41 $ 299.18
Percent change from prior years -26% 0% 1% 5% -2% -2% 10% 0% 3%
COLLECTIBLE - even $ amount $ 72.00 $ 97.00 $ 97.00 $ 47.00 $ 45.00 $ 46.00 $ 328.00 $ 299.00 $ 299.00
Revenue from even doliar payment $ 47,649.00 $ 64,194.00 $ 64.194.00 $ 11,703.00 $ 11,205.00 $ 11,454.00 $ 41,656.00 $ 37,973.00 $ 37,973.00
ASSESSMENT $ 103.43 $ 101.20 $ 99.70 $ 47.99 $ 46.95 $ 46.26 $ 328.45 $ 321.38 $ 316.63
Assessment with CPI (4) $ 103.43 $ 101.20 $ 47.99 $ 46.95 $ 328.45 $ 321.38
BudgeUEDU $ 88.77 $ 85.05 $ 84.35 $ 52.55 $ 47.57 $ 47.26 $ 377.51 $ 361.05 $ 357.58
Percent chanae from orior vears 4% 1% 4% 10% 1% -1% 5% 1% 3%
,^ ^...
Budget more than assmt?
YES
YES
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 2004/2005=2.2%
See Council Agenda Statement for further explanation.
Notes:
(1) Reserve Requirement=Estimated
Maintenance Cost/Reserve Percent
(2) Estimated fund balance as of June 30
of each year
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 2 OF 7
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Open Space District #/ 4 5 6
Bonita Ridge Southbay Vii/as Hii/top Vista
FISCAL YEAR 2004/2005 2003/2004 2002/2003 2004/2005 2003/2004 2002/2003 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges $ 1,621.00 $ 1,593.00 $ 1,455.00 $ 245.00 $ 241.00 $ 220.00 $ 313.00 $ 308.00 $ 281.00
Trash Collection & Disposal Fees 1,400.00 1,400.00 1,400.00 280.00 280.00 280.00 280.00 280.00 280.00
Water Charges 16,357.00 15,804.00 15,270.00 11,817.00 11,417.00 11,031.00 6,246.00 6,035.00 5,831.00
Services to maintain structures, grounds 210.00 210.00 210.00 860.00 860.00 860.00 240.00 240.00 240.00
City Staff Services 12,094.00 10,320.00 11,270.00 8,854.00 5,446.00 5,956.00 3,856.00 2,657.00 2,905.00
Contract Services 32,060.00 32,060.00 30,075.00 13,673.00 13,673.00 12,826.00 5,938.00 5,938.00 5,570.00
Landscape Supplies 1,103.00 1,103.00 1,103.00 947.00 947.00 947.00 311.00 311.00 311.00
Materials to maintain structures, grounds 800.00 800.00 800.00 800.00 800.00 800.00 780.00 780.00 780.00
Backfiow Certification
Professional Services 2,400.00 2,400.00 2,400.00 1,200.00 1,200.00 1,200.00 400.00 400.00 400.00
Supplementals 600.00 600.00 600.00 120.00 120.00 120.00 120.00 120.00 120.00
Other commodities
Advertising
rransfer: Corporate Yard Debt Service 690.00 685.00 1,411.00 364.00 362.00 752.00 178.00 176.00 367.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 69,335.00 $ 66,975.00 $ 65,994.00 $ 37,160.00 $ 35,346.00 $ 34,992.00 $ 18,662.00 $ 17,245.00 $ 17,085.00
Reserve Requirement (1) $ 48,535.00 $ 32,818.00 $ 32,997.00 $ 27,498.00 $ 22,268.00 $ 17,496.00 $ 14,370.00 $ 13,279.00 $ 11,447.00
Reserve Percent 70% 49% 50% 74% 63% 50% 77% 77% 67%
Additional Reserve
Fund Balance (2) 48,922.00 28,971.00 31,539.00 29,395.00 22,574.00 17,674.00 17,541.00 12,667.00 10,676.00
NET ASSESSMENT (3) $ 68,948.00 $ 70,822.00 $ 67,452.00 $ 35,263.00 $ 35,040.00 $ 34,814.00 $ 15,491.00 $ 17,857.00 $ 17,856.00
Equivalent Dwelling Units (EDU's) 210.00 210.00 210.00 122.00 122.00 122.00 162.00 162.00 162.00
Collectible/EDU $ 328.32 $ 337.25 $ 321.20 $ 289.04 $ 287.21 $ 285.36 $ 95.62 $ 110.23 $ 110.22
Percent change from prior years -3% 5% 6% 1% 1% 2% -13% 0% 0%
COLLECTIBLE - even $ amount $ 328.00 $ 337.00 $ 321.00 $ 289.00 $ 287.00 $ 285.00 $ 96.00 $ 110.00 $ 110.00
Revenue from even dollar payment $ 68,880.00 $ 70,770.00 $ 67,410.00 $ 35,258.00 $ 35,014.00 $ 34,770.00 $ 15,552.00 $ 17,820.00 $ 17,820.00
ASSESSMENT $ 346.93 $ 339.46 $ 334.44 $ 338.30 $ 331.02 $ 326.13 $ 167.29 $ 163.69 $ 161.27
Assessment with CPI (4) $ 346.93 $ 339.46 $ 338.30 $ 331.02 $ 167.29 $ 163.69
BudgetiEDU $ 330.17 $ 318.93 $ 314.26 $ 304.59 $ 289.72 $ 286.82 $ 115.20 $ 106.45 $ 105.46
Percent change from prior years 4% 1% 3% 5% 1% 3% 8% 1% 1%
"^'oo,.
Budget more than assmt?
Notes:
(1) Reserve Requirement=Estimated
Maintenance CostiReserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 2004/2005=2.2%
See Council Agenda Statement for further explanation.
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 3 OF 7
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Open Space District # 7 8 9
Zenith Units 2,3 and 4 Rancho Robinhood Unit 3 EI Rancho del Rey
FISCAL YEAR 2004/2005 200312004 2002/2003 2004/2005 2003/2004 2002/2003 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges $ 211.00 $ 207.00 $ 189.00 $ 404.00 $ 397.00 $ 363.00 $ 442.00 $ 434.00 $ 396.00
Trash Collection & Disposal Fees 280.00 280.00 280.00 2,520.00 2,520.00 2,520.00
Water Charges 4,394.00 4,245.00 4,101.00 15,520.00 14,995.00 14,488.00 24,095.00 23,280.00 22,493.00
Services to maintain structures, grounds 290.00 290.00 290.00 630.00 630.00 630.00 580.00 580.00 580.00
City Staff Services 2,849.00 1,720.00 1,881.00 9,313.00 7,733.00 8,421.00 11,988.00 10,221.00 11,184.00
Contract Services 3,390.00 3,390.00 3,180.00 23,747.00 23,747.00 22,277.00 23,392.00 23,392.00 21,944.00
Landscape Supplies 234.00 234.00 234.00 422.00 422.00 422.00 1,005.00 1,005.00 1,005.00
Materials to maintain structures, grounds 360.00 360.00 360.00 350.00 350.00 350.00 1,500.00 1,500.00 1,500.00
Backflow Certification
Professional Services 400.00 400.00 400.00 800.00 800.00 800.00 2,400.00 2,400.00 2,400.00
Supplementals 200.00 200.00 200.00 320.00 320.00 320.00 320.00 320.00 320.00
Other commodities
Advertising
Transfer: Corporate Yard Debt Service 115.00 114.00 243.00 517.00 513.00 1,079.00 683.00 678.00 1,441.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 12,443.00 $ 11,160.00 $ 11,078.00 $ 52,303.00 $ 50,187.00 $ 49,430.00 $ 68,925.00 $ 66,330.00 $ 65,783.00
Reserve Requirement (1) $ 9,332.00 $ 8,593.00 $ 7,865.00 $ 35,566.00 $ 25,094.00 $ 24,715.00 $ 34,807.00 $ 38,471.00 $ 39,470.00
Reserve Percent 75% 77% 71% 68% 50% 50% 51% 58% 60%
Additional Reserve -
Fund Balance (2) 9,738.00 9,661.00 8,829.00 37,838.00 25,710.00 25,346.00 45,763.00 49,238.00 50,371.00
NET ASSESSMENT (3) $ 12,037.00 $ 10,092.00 $ 10,114.00 $ 50,031.00 $ 49,571.00 $ 48,799.00 $ 57,969.00 $ 55,563.00 $ 54,882.00
Equivalent Dwelling Units (EDU's) 104.00 104.00 104.00 110.00 110.00 110.00 384.00 384.00 384.00
Collectible/EDU $ 115.74 $ 97.04 $ 97.25 $ 454.83 $ 450.65 $ 443.63 $ 150.96 $ 144.70 $ 142.92
Percent change from prior years 19% 0% 1% 1% 2% 7% 4% 1% -4%
COLLECTIBLE. even $ amount $ 116.00 $ 97.00 $ 97.00 $ 455.00 $ 451.00 $ 444.00 $ 151.00 $ 145.00 $ 143.00
Revenue from even dollar payment $ 12,064.00 $ 10,088.00 $ 10,088.00 $ 50,050.00 $ 49,610.00 $ 48,840.00 $ 57,984.00 $ 55,680.00 $ 54,912.00
ASSESSMENT $ 116.87 $ 114.35 $ 112.66 $ 533.89 $ 522.39 $ 514.67 $ 151.31 $ 148.05 $ 145.86
Assessment with CPI (4) $ 116.87 $ 114.35 $ 533.89 $ 522.39 $ 151.31 $ 148.05
BudgetiEDU $ 119.64 $ 107.31 $ 106.52 $ 475.48 $ 456.25 $ 449.36 $ 179.49 $ 172.73 $ 171.31
Percent change from nrior VAars 11% 1% -1% 4% 2% 3% 4% 1% 4%
"'.n 00+'
Budget more than assmt?
Notes:
YES
(1) Reserve Requirement=Estimated
Maintenance CosVReserve Percent
(2) Estimated fund balance as of June 30
of each year
YES
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requlrement+Additional Reserve-Fund Balance
(4) CPI change for FY 200412005=2.2%
See Council Agenda Statement for further explanation.
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 4 OF 7
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Open Space District # 15 17 18
Bonita Haciendas Be/ Air Ridge Rancho del Sur
FISCAL YEAR 2004/2005 2003/2004 2002/2003 2004/2005 2003/2004 200212003 2004/2005 2003/2004 200212003
Personal Services
Utility Charges $ 179.00 $ 176.00 $ 161.00 $ 996.00 $ 979.00 $ 894.00
Trash Collection & Disposal Fees 280.00 280.00 280.00 $ 560.00 $ 560.00 $ 560.00
Water Charges 6,745.00 6,517.00 6,297.00 40,359.00 38,994.00 37,675.00
Services to maintain structures, grounds 600.00 600.00 600.00 5,170.00 5,170.00 5,170.00
City Staff Services 3,886.00 2,685.00 2,931.00 1,141.00 596.00 665.00 22,365.00 19,874.00 17,320.00
Contract Services 5,483.00 5,483.00 5,143.00 2,020.00 2,020.00 1,895.00 58,775.00 58,775.00 55,136.00
Landscape Supplies 204.00 204.00 204.00 550.00 550.00 550.00 986.00 986.00 986.00
Materials to maintain structures, grounds 340.00 340.00 340.00 100.00 100.00 100.00 1,200.00 1,200.00 1,200.00
Backflow Certification
Professional Services 800.00 800.00 800.00 1,200.00 1,200.00 1,200.00
Supplementals 120.00 120.00 120.00 480.00 480.00 480.00
Other commodities
Advertising
Transfer: Corporate Yard Debt Service 179.00 178.00 377.00 40.00 40.00 85.00 1,328.00 1,319.00 2,779.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 18,816.00 $ 17,383.00 $ 17,253.00 $ 4,411.00 $ 3,866.00 $ 3,855.00 $ 132,859.00 $ 128,977.00 $ 122,840.00
Reserve Requirement (1) $ 17,593.00 $ 15,123.00 $ 12,595.00 $ 2,558.00 $ 3,866.00 $ 2,082.00 $ 93,001.00 $ 79,966.00 $ 84,760.00
Reserve Percenl 94% 87% 73% 58% 100% 54% 70% 62% 69%
Additional Reserve
Fund Balance (2) 18,278.00 16,755.00 14,104.00 2,557.00 5,693.00 3,488.00 93,315.00 92,433.00 92,029.00
NET ASSESSMENT (3) $ 18,131.00 $ 15,751.00 $ 15,744.00 $ 4,412.00 $ 2,039.00 $ 2,449.00 $ 132,545.00 $ 116,510.00 $ 115,571.00
Equivalent Dwelling Units (EDU's) 57.00 57.00 57.00 46.00 46.00 46.00 435.00 435.00 435.00
Collectible/EDU $318.09 $276.33 $276.21 $95.91 $44.33 $53.24 $304.70 $267.94 $265.68
Percenl change from prior years 15% 0% 0% 116% -17% 32% 14% 1% 0%
COLLECTIBLE - even $ amount $ 318.00 $ 276.00 $ 276.00 $96,00 $44,00 $ 53.00 $ 305.00 $ 268.00 $ 266.00
Revenue from even dollar payment $ 18,126.00 $ 15,732.00 $ 15,732.00 $ 4,416.00 $ 2,024.00 $ 2,438.00 $ 132,675.00 $ 116,580.00 $ 115,710.00
ASSESSMENT $ 318.66 $ 311.80 $ 307.19 $ 152.54 $ 149.25 $ 147.05 $ 360.45 $ 352.69 $ 347.48
Assessment with CPI (4) $ 318.66 $ 311.80 $ 152.54 $ 149.25 $ 360.45 $ 352.69
BudgeVEDU $ 330.11 $ 304.96 $ 302.68 $ 95.89 $ 84.04 $ 83.80 $ 305.42 $ 296.50 $ 282.39
Percent channe from nrior years 8% 1% 1% 14% 0% -12% 3% 5% 0%
--'u,.
Budget more than assmt?
Notes:
YES
(1) Reserve Requirement=Estimated
Maintenance CostlReserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 200412005=2.2%
See Council Agenda Statement for further explanation.
ESTIMATE OF MAINTENANCE COSTS FY 200412005
ATTACHMENT 2
PAGE 5 OF 7
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Open Space District # 20 23 24
Rancho del Rey Otay Rio Business Park Canyon View Homes
FISCAL YEAR 200412005 2003/2004 2002/2003 2004/2005 2003/2004 2002/2003 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges 11,893.00 $ 11,689.00 $ 10,673.00 $ 936.00 $ 920.00 $ 840.00 $ 136.00 $ 134.00 $ 122.00
Trash Collection & Disposal Fees 8,400.00 8,400.00 8,400.00 560.00 560.00 610.00 280.00 280.00 280.00
Water Charges 355,286.00 343,272.00 331,663.00 9,669.00 9,342.00 9,026.00 8,742.00 8,446.00 8,160.00
Services to maintain structures, 9rounds 40,211.00 40,011.00 40,211.00 440.00 440.00 440.00 610.00 610.00 610.00
City Staff Services 188,030.00 170,259.00 190,518.00 8,712.00 7,174.00 5,126.00 4,276.00 3,513.00 3,944.00
Contract Services 462,291.00 462,291.00 433,758.00 19,036.00 19,036.00 17,858.00 7,644.00 7,644.00 7,171.00
Landscape Supplies 16,730.00 16,730.00 16,730.00 660.00 660.00 660.00 400.00 400.00 400.00
Materials to maintain structures, 9rounds 15,950.00 16,150.00 15,950.00 900.00 900.00 900.00 1,530.00 1,530.00 1,530.00
Backflow Certification -
Professional Services 22,800.00 22,800.00 22,800.00 6,930.00 6,930.00 1,930.00 400.00 400.00 400.00
Supplementals 2,040.00 2,040.00 2,040.00 120.00 120.00 120.00 60.00 80.00 80.00
Other commodities -
Advertisin9
Transfer: Corporate Yard Debt Service 11,377.00 11,303.00 15,812.00 479.00 476.00 299.00 235.00 233.00 514.00
Storm maintenance 147,818.00
Special Maintenance Fund 604.00
ESTIMATED MAINTENANCE COST $ 1,282,826.00 $1,104,945.00 $ 1,088,555.00 $ 48,442.00 $ 46,558.00 $ 38,613.00 $ 24,333.00 $ 23,270.00 $ 23,211.00
Reserve Requirement (1) $ 18,747.00 $ 46,558.00 $ 19,307.00 $ 16,060.00 $ 15,358.00 $ 13,462.00
Reserve Percent 39% 100% 50% 66% 66% 58%
Additionai Reserve -
Fund Balance (2) 22,481.00 54,132.00 20,524.00 17,909.00 19,234.00 17,458.00
NET ASSESSMENT (3) $ 44,708.00 $ 38,984.00 $ 37,396.00 $ 22,484.00 $ 19,394.00 $ 19,215.00
Equivalent Dwellin9 Units (EDU's) 90.06 90.06 89.17 40.00 40.00 40.00
Collectible/EDU See attached worksheet for $ 496.42 $ 432.87 $ 419.38 $ 562.10 $ 484.85 $ 480.38
Percent change from prior years OSD 20 - Rancho del Rey 15% 3% 146% 16% 1% 2%
I COLLECTIBLE - even $ amount $ 496.00 $ 433,00 $ 419.00 562,00 $ 485,00 $ 480.00
Revenue from even dollar payment $ 44,670.00 $ 38,996.00 $ 37,362.00 $ 22,480.00 $ 19,400.00 $ 19,200.00
ASSESSMENT $ 498.72 $ 486.02 $ 478.84 6 7.55 $ 604.26 5 595.33
Assessment with CPI (4) $ 496.72 $ 486.02 $ 617.55 $ 604.26
BudgetlEDU $ 537.89 $ 516.97 $ 433.03 $ 608.33 $ 581.75 $ 580.28
Percent change from orior vears 4% 19% 183% 5% 0% 2%
"mOooO'
Budget more than assmt?
YES
Notes:
(1) Reserve Requirement=Estimated
Maintenance Cost/Reserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 200412005=2.2%
See Council Agenda Statement for further explanation.
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 6 OF 7
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'Z
Open Space District # 26 31 33
Park Bonita Telegraph Canyon Estates Broadway Business Home Village
FISCAL YEAR 2004/2005 2003/2004 2002/2003 200412005 2003/2004 200212003 2004/2005 2003/2004 200212003
Personal Services
Utility Charges $ 133.00 $ 131.00 $ 120.00 $ 714.00 $ 702.00 $ 641.00 $ $ - $
Trash Collection & Disposal Fees 1,960.00 1,960.00 1,960.00 0.00 0.00 0.00
Water Charges 1,826.00 1,764.00 1,704.00 38,851.00 37,537.00 36,268.00 0.00 0.00 0.00
Services to maintain structures, grounds 600.00 600.00 600.00 4,800.00 4,800.00 4,800.00 0.00 0.00 0.00
City Staff Services 1,626.00 1,047.00 1,155.00 20,532.00 18,169.00 19,932.00 0.00 0.00 0.00
Contract Services 2,376.00 2,376.00 2,229.00 40,199.00 40,199.00 37,710.00 0.00 0.00 0.00
Landscape Supplies 200.00 200.00 200.00 2,092.00 2,092.00 2,092.00 0.00 0.00 0.00
Materials to maintain structures, grounds 170.00 170.00 170.00 3,070.00 3,070.00 3,070.00 0.00 0.00 0.00
Backflow Certification
Professional Services 400.00 400.00 400.00 8,100.00 8,100.00 8,100.00 0.00 0.00 0.00
Supplementals 40.00 40.00 40.00 80.00 80.00 80.00
Other commodities
Advertising
Transfer: Corporate Yard Debt Service 70.00 70.00 147.00 1,214.00 1,206.00 2,382.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 7,441.00 $ 6,798.00 $ 6,765.00 $ 121,612.00 $ 117,915.00 $ 117,035.00 $ $ $
Reserve Requirement (1) $ 7,069.00 $ 6,798.00 $ 4,736.00 $ 99,722.00 $ 86,078.00 $ 58,518.00 $ $ $
Reserve Percent 95% 100% 70% 82% 73% 50% 100%
Additional Reserve 0.00 0.00 0.00
Fund Balance (2) 7,847.00 7,077.00 4,612.00 100,145.00 79,127.00 50,651.00
NET ASSESSMENT (3) $ 6,663.00 $ 6,519.00 $ 6,889.00 $ 121,189.00 $ 124,866.00 $ 124,902.00 $ $ $
Equivalent Dwelling Units (EOU's) 19.00 19.00 19.00 345.00 345.00 345.00 36.00 36.00 36.00
Collectible/EDU $ 350.68 $ 343.11 $ 362.58 $ 351.27 $ 361.93 $ 362.03 $ $ $
Percent change from prior years 2% -5% -1% -3% 0% 1%
COLLECTIBLE. even $ amount $ 351.00 $ 343.00 $ 363.00 $ 351.00 $ 362.00 $ 362.00 $ $ $
Revenue from even dollar payment $ 6,669.00 $ 6,517.00 $ 6,897.00 $ 121,095.00 $ 124,890.00 $ 124,890.00 $ $ $
ASSESSMENT $ 484.69 $ 474.25 $ 467.24 $ 500.68 $ 489.90 $ 482.66 $ 1,237.36 $ 1,210.73 $ 1,192.83
Assessment with CPI (4) $ 484.69 $ 474.25 $ 500.68 $ 489.90 $ 1,237.36 $ 1,210.73
BudgetiEDU $ 391.63 $ 357.79 $ 356.05 $ 352.50 $ 341.78 $ 339.23 $ $ $
Percenf change from orior years 9% 0% -5% 3% 1% 4% NA NA NA
",^toot.
Budget more than assmt?
Notes:
(1) Reserve Requirement=Estimated
Maintenance CostiReserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 2004/2005=2.2%
See Council Agenda Statement for further explanation.
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 7 OF 7
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Open Space District # Bay Boulevard Town Centre
Maintenance District Maintenance District
FISCAL YEAR 2004/2005 200312004 200212003 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges $ 1,092.00 $ 1,073.00 $ 980.00 $ $ $ 5,538.00
Trash Collection & Oisposal Fees 475.00 475.00 475.00
Water Charges 3,221.00 3,112.00 3,007.00 0.00 0.00 2,530.00
Services to maintain structures, grounds 600.00 600.00 600.00 0.00 0.00 120.00
City Staff Services 5,612.00 4,755.00 9,380.00 0.00 0.00 25,041.00
Contract Services 0.00 0.00 10,020.00
Landscape Supplies 850.00 850.00 850.00 0.00 0.00 600.00
Materials to maintain structures, grounds 230.00 230.00 230.00
Backfiow Certification
Protessional Services 0.00 0.00 3,700.00
Supplementals 80.00 80.00 80.00
Other commodities 0.00 0.00 1,250.00
Advertising 180.00 180.00 180.00 0.00 0.00 180.00
Transfer: Corporate Yard Oebt Service 81.00 81.00
Special Maintenance Fund
ESTIMATEO MAINTENANCE COST $ 12,421.00 $ 11,436.00 $ 15,782.00 $ $ $ 48,979.00
Reserve Requirement (1) $ 10,920.00 $ 5,947.00 $ 7,796.00 $ $ $ 30,857.00
Reserve Percent 88% 52% 49.4% 63%
Additional Reserve
Fund Balance (2) 17,539.00 11,769.00 17,990.00 $ $ 61,995.00
NET ASSESSMENT (3) $ 5,802.00 $ 5,614.00 $ 5,588.00 $ $ $ 17,841.00
Equivaient Dwelling Units (EOU's) 6.39 6.39 6.39 512,612 512,612 512,612
Coliectible/EOU $ 908.00 $ 878.56 $ 874.49 $ $ $ 0.034804
Percent change from prior years 3% 0% 0% 49%
COLLECrlBLE - even $ amount $ 908.00 $ 878.56 $ 878.40 $ $ $ 0.034804
Revenue from even dollar payment $ 5,802.00 $ 5,614.00 $ 5,613.00 $ $ $ 17,840.95
ASSESSMENT 908.05 $888.50 $ 875.37 $ 0.102372 $ 0.100168 $ 0.098688
Assessment with CPI (4) $ 908.05 $ 888.50 0.102372 $ 0.100168
BudgetiEDU $ 1,943.82 $ 1,789.67 $ 2,469.80 $0.00 $0.00 $ 0.10
Percent change from prior years 9% -28% 0% NA NA 0%
...m A<'
Budget more than assmt?
Notes:
YES
(1) Reserve Requirement=Estimated
Maintenance Cost/Reserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPt change for FY 2004/2005=2.2%
See Council Agenda Statement for further explanation.
ESTIMATE OF MAINTENANCE COSTS FY 2004/2005
ATTACHMENT 2
PAGE 1 OF 7
Open Space District # 20
Rancho del Rey
FISCAL YEAR 200412005 Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Zone 6 Zone 7 Zone 8 Zone 9
Personal Services
Utility Charges $ 5,648.00 $ 136.00 $ 409.00 $ 409.00 $ 3,314.00 $ 818.00 $ 1,159.00
Trash Collection & Disposal Fees 280.00 280.00 3,360.00 2,240.00 2,240.00
Water Charges 5,364.00 7,799.00 23,074.00 209,218.00 29,071.00 80,760.00
Services to maintain structures, 9rounds 200.00 400.00 1,769.00 11,602.00 9,690.00 16,550.00
City Staff Services 1,101.00 6,132.00 5,170.00 12,887.00 102,811.00 18,172.00 41,472.00 285.00
Contract Services 22,938.00 12,642.00 29,684.00 267,119.00 36,809.00 91,664.00 1,435.00
Landscape Supplies 460.00 2,260.00 860.00 7,700.00 1,700.00 3,750.00
Materials to maintain structures, 9rounds 500.00 2,000.00 1,000.00 7,500.00 1,800.00 3,150.00
Backflow Certification
Professional Services 1,200.00 800.00 2,300.00 8,900.00 4,000.00 5,600.00
Supplementals 40.00 40.00 120.00 800.00 240.00 800.00
Other commodities
Advertisin9
Transfer: Corporate Yard Debt Service 68.00 381.00 321.00 723.00 6,314.00 1,052.00 2,500.00 18.00
Storm maintenance 144,818.00 3,000.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 151,635.00 $ 37,631.00 $ 31,841.00 $ 73,106.00 $ 628,638.00 $ 105,592.00 $ 249,645.00 $ $ 4,738.00
Notes:
(1) Reserve Requirement=Estimated
Maintenance Cost/Reserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 2004/2005=2.2%
See Council Agenda Statement for further explanation.
U\
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Rancho del Rey OSO 20 - FY 2004/2005
5120/03
Final Fund Balance as of 6/30/03
1,799,535.00 .J
Estimated Fund Balance as of 6/30/04
1,673,467.00 .J
Estimated Interest
77,865.00
A IT ACHMENT 2
Plus Plus Less Less
FY 04/05 Reserve Budget FY 04105 FY 04/05 FY 03104 FY 04/05 Less FY 04/05
P&R Budget p"cent Reserve Req1 Amort Cost Total Cost Budget Res loan InUsavings Net Payment EDU's
Zone 1 - DB at H 6,817.00 50% 3,374.42 6,700.00 16,891.42 4,982.00 6,580.05 5,329.37 882.08
Zone 2 - Rice Cyn 36,591.00 0% 0.00 0.00 36,591.00 13,570.00 4,550.00 1,850.41 16,620.59 3,959.38
Zone3-EHSt 31,840.00 80% 25,408.32 0.00 57,248.32 24,S23.00 1,997.40 30,727.92 6,147.49
Zone 4 - Business Ctr 73,106.00 51% 37,210.95 4,002.00 114,318.95 50,582.00 6,482.31 57,254.65 2,602.50
Zone 5 - SPA 1 Res 628,638.00 74% 463,934.84 34,617.00 1,127,189.84 481,844.00 -4,550.00 43,729.70 606,166.15 1,795.00
Zone 6 - SPA 2 Res 105,592.00 83% 87,641.36 0.00 193,233.36 80,280.00 6,538.65 106,414.71 573.20
Zone 7 - SPA 3 Res 249,645.00 50% 125,920.94 0.00 375,565.94 172,403.00 14,881.95 188,280.99 1,176.79
Zone 8 - DB North 0.00 50% 0.00 4,431.00 4,431.00 0.00 639.25 3,791.75 118.82
Zone 9 - rc Channel 1,738.00 50% 870.65 300.00 2,908.65 1,147.00 224.29 1,537.36 52.46
Total 1,133,967.00 744,361.48 50,050.00 1,928,378.48 829,331.00 82,924.00 1,016,123.48
.J .J .J .J .J .J
Zone 11n addilion to the budget above, an additional $144,818 will be spent by PWfor maintenance of desilt and stab structures, money previously collected
Zone 2 In addition to the budgel above, an additional $1,041 will be spent from money previously collected.
Zone 9 In addilion to the budget above, an additional $3,000 will be spent by PW for maintenance of TC channel from money previously collect
Total budget ~ 1,133,967.00 148,859.00 1,282,826.00
Y'l .J .J .J .J .J .J .J
W Assessment Assessment Assessmenl Colleclible Collectible Cost Cost Cost EDU's EDU's Assmt>
'-.) FY 02/03 FY 03/04 FY 04/05 FY 03/04 FY 04/05 FY 02/03 FY 03/04 FY 04/05 FY 03/04 FY 04/05 Colleclible
Zone 1 - DB 53.70 54.51 55.71 4.26 6.00 21.89 753 15.32 882.56 882.08 Yes
Zone 2 - Rice Cyn 4.08 4.14 4.23 4.14 4.20 8.73 9.30 9.24 3,980.70 3,959.38 Yes
Zone3-EHSt 5.81 5.90 6.03 4.23 5.00 4.73 504 5.18 6,190.09 6,147.49 Yes
Zone 4 - Bus Ctr 21.63 21.95 22.43 21.81 22.00 26.27 2807 29.63 2,645.10 2,602.50 Yes
Zone 5 - SPA 1 Res 326.29 331.18 338.47 302.18 338.00 336.97 360.86 369.50 1,795.00 1,795.00 Yes
Zone 6 - SPA 2 Res 250.71 254.47 260.07 146.93 186.00 167.52 178.22 184.21 573.20 573.20 Yes
Zone 7 - SPA 3 Res 154.76 157.08 160.54 155.35 160.00 192.95 206.34 212.14 1,176.79 1,176.79 Yes
Zone 8 - DB North 35.67 36.21 37.01 3S.44 32.00 37.69 36.79 37.29 120.47 118.82 Yes
Zone 9 - TC Chan 28.33 28.75 29.38 22.57 29.30 32.42 32.75 38.85 52.46 52.46 Yes
AITACHMENr2
Rancho del Rey Open Space District No. 20
Amortized Costs
Amount Accumulatad fo, Amount to ba apant FY04-O.
Zona Oa""pt'on FY: 90-9' through 03-04 FY 04-06 Amount Wo,. daacription
1 Desilting Basin $134,818.00 $134,8i8.00 $0.00 Desilting basin maintenance (every 5 years)
at East H Street $33,500.00 $10,000.00 $6,700.00 Stabilization structu..s maintenance (every 5 years)
$3,649.00 Miscellaneous
2 Rice Canyon $0.00 Staging A..a - A.C. overlay and stdpe (every 5 years) at $813
Trail area $1,041.00 $1,041.00 Staging ..ea replacement (30 year pedod) at $228
3 East H Street $0.00 $0.00 None
4 SPA 1 Pbase 1 $56,028.00 $4,002.00 Monumentation replacement (30 year period)
(Business Center)
5 SPA 1 Phases 2-6 $500,678.00 $34,617.00 Theme wall and monument replacement (30 year)
Loan for Zone 2
6 SPA 2 $0.00 $0.00
7 SPA 3 $0.00 $0.00
8 Desilting Basin $13,403.70 $4,431.00 Access Road/gabion structure not yet accepted by City
at Glen Abbey
9 Telegraph Cyn Cbaru $3,392.00 $3,000.00 $300.00 $940.00 from amortized amount used for
(SPA 3 area) current maintenance in FY 200112002
Subtotal $746,509.70 $148,859.00 $50,050.00
TOTAL Remaining in account after FY 04/05 $647,701
Notes:
I. Zone 1 - $26,320 (5 yrs) & $6,700 (5 yrs) for desilting basin & stabilization structu..s not collected beyond 5 yrs per State code;
Zone 2 - $813 (5 yrs) for AC not collected.
2. SPA 2 & 3, Zones 6 & 7 - Amortized cost for walls not detetmined. Need to detetmine this during FY 05/06
3. Zones 6 & 7 - Theme walVmonumentation to be added.
4. Zone 8 - New gabion structure and access road are to be pedodically maintained. Reserves are to be accumulated prior to
anticipated acceptance in FY 200312004 or later. Canot collect beyond 5 ye..s for maintenance per State code
5. Zone 9 - See TC sp..adsheet for cost breakdown on channel. Typically $722/ye..)
6. Begin collecting for Zone 1 amortized costs for desilt basin and stabilization structures again beginning FY 05/06
7. Amount in ..serve at end ofFY 03/04 ~ $746,509
5-3<6
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER'S REPORTS
FOR THE FY 2004/05 SPREAD OF ASSESSMENTS FOR OPEN
SPACE DISTRICTS I THROUGH 9, 15, 17, 18,20,23,24,26,31
AND 33, BAY BOULEVARD AND TOWN CENTRE
MAINTENANCE DISTRICTS; DECLARING THE INTENTION
TO LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THESE ASSESSMENTS
WHEREAS, pursuant to Article 4, Chapter I, Part 2 of Division 15 of the
California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972"
and Chula Vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the
annual reports for all existing Open Space Maintenance Districts in the City; and
WHEREAS, these reports were prepared by the City Engineer or under his
direction and are presented to Council for approval in order to proceed with the public hearings
set for July 20,2004, in accordance with the Landscaping and Lighting Act of 1972. The report
covers Open Space Districts I through 9,15,17,18,20,23,24,26,31 and 33, Bay Boulevard
and Town Centre Maintenance Districts; and
WHEREAS, the proposed assessment for Fiscal Year 2004-2005 is as follows:
Historical and Proposed FY 2004/05 Assessments/Collectibles
Proposed Proposed
FY 02/03 FY 03/04 FY 03/04 FY 04/05 FY 04/05
OSD/Zone Assmnt/ Collectible Assmnt/ Assessment Collectible FY 04/05
EDU EDU EDU per EDU (1) per EDU Revenue
1 $99.70 $97.00 $101.20 $103.43 $72.00 $47,648
2 46.26 45.00 46.95 47.99 47.00 11,703
3 316.63 299.00 321.38 328.45 328.00 41,656
4 334.44 337.00 339.46 346.93 328.00 68,880
5 326.13 287.00 331.02 338.30 289.00 35,258
6 161.27 110.00 163.69 167.29 96.00 15,552
7 112.66 97.00 114.35 116.87 116.00 12,064
8 514.67 451.00 522.39 533.89 455.00 50,050
9 145.86 145.00 148.05 151.31 151.00 57,984
15 307.19 276.00 311.80 318.66 318.00 18,126
17 147.05 23.00 149.25 152.54 96.00 4,416
18 347.48 268.00 352.69 .360.45 305.00 132,675
20 - - - - - 1,017,126
Zone 1 - Desiltin~ Basin 53.70 4.26 54.51 $55.71 $6.00 (2)
Zone 2 - Rice Canyon 4.08 4.14 4.14 4.23 4.20 (2)
Zone 3 - H Street 5.81 4.23 5.90 6.03 5.00 (2)
Zone 4 - Business Centre 21.63 21.81 21.95 22.43 22.00 (2)
ZoneS-SPA 1 326.29 302.18 331.18 338.47 338.00 (2)
5- 3 '7
I Historical and Proposed FY 2004/05 Assessments/Collectibles I
Proposed Proposed
FY 02/03 FY 03/04 FY 03/04 FY 04/05 FY 04/05
OSD/Zone Assmntl Collectible Assmntl Assessment Collectible FY 04/05
EDU EDU EDU ner EDU (1) Der EDU Revenue
Zone6-SPAll 250.71 146.93 254.47 260.07 186.00 (2)
Zone 7 - SPA III 154.76 155.35 157.08 160.54 160.00 (2)
Zone 8 - North Desilting Basin 35.67 35.44 36.21 37.01 32.00 (2)
Zone 9 - Telegraph Canyon 28.33 22.57 28.75 29.38 29.30 (2)
Channel
23 478.84 486.00 486.02 496.72 496.00 44,670
24 595.33 485.00 604.26 617.55 562.00 22,480
26 467.24 236.00 474.25 484.69 351.00 6,669
31 482.66 364.00 489.90 500.68 351.00 121,095
33 1,192.84 0.00 1,210.73 1237.36 0.00 0
Bav Boulevard <', 875.37 2.35 888.50 908.05 908.00 5,802
Town Centre '0) $0.00 0.00 0.100168 .102372 0.00 0
, Assessment may be set at or below this amount without being subject to a vote and majority protest.
(2) Revenue for all zones included in overall District 20 amount.
(3) Bay Boulevard rates based on acres since FY 2001/02.
(4) Town Centre rates based on parcel square footage since FY 2001/02.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect
assessments for the FY 2004-2005 for the spread of assessments for City Open Space
Maintenance Districts I through 9,15,17,18,20,23,24,26,31 and 33, Bay Boulevard and
Town Centre Maintenance Districts, a copy of which is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council does hereby set July 20,
2004, at 6:00 p.m. in the City Council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula
Vista, California as the date and time for the public hearing on said assessment.
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish
said assessment pursuant to Government Code Section 6061.
Presented by
Approved as to form by
Jack Griffin
Director of General Services
-f!::dJ ;:JW- 5 ~
City Attorney
j,lEngineerlAGENDAIResoslOpen Space various.doc
5-~O
COUNCIL AGENDA STATEMENT
Item ..!!..-
Meeting Date 6/15/04
ITEM TITLE:
Resolution approving the Engineer's Report for the FY 2004/05
assessment for Open Space District 10; declaring the intention to levy and collect
assessments; and setting a public hearing regarding the assessment.
SUBMITTED BY: Director of General Services / City Engineer¥'
REVIEWED BY: CityManager~:oi" (4/5ths Vote: Yes_NolO
This is one of four companion agenda items to the primary Open Space assessments agenda item, which
provides all general background information and details regarding the proposed Open Space Districts
assessments for FY 2004/05. The present item includes information specific to Open Space District 10.
RECOMMENDATION: That Council adopt the resolution, and set a public hearing for July 20,2004 at
6:00 p.m.
BOARD/COMMISSIONS: N/A
DISCUSSION:
Open Space District 10 is located along East J Street west of Paseo Ranchero (Attachment I). General
information about this and all other open space districts is contained in the primary Open Space assessments
item, presented on tonight's Council Agenda. Table I, below, compares the current year's assessment to the
proposed assessment for FY 2004/05.
Table 1. Historical and Proposed FY 2004/05 Assessment/Collectible (per EDU)
FY 02/03 FY 03/04 Proposed FY 04/05
OSD10 Projected
Assessment Assessment Collectible Assessment Collectible Revenue
E! Rancho del Rey 6 & Casa del Rey $98.43 $99.91 $94.00 $102.10 $102.00 $67,154
Staff recommends for FY 2004/05 that the assessment remain the same as in FY 2003/04, plus an allowable
inflation factor of2.2% (please refer to tonight's primary Open Space agenda item for a discussion of the
inflation factor), bringing the proposed assessment to $102.10 per EDU.
Taking into account the estimated maintenance costs for FY 2004/05, and in order to maintain a reserve at or
above the 50% level, staff recommends a collectible of$102.00 per EDU. For this District, the budget will
exceed the amount of revenue that can be generated by the proposed assessment. However, due to available
excess funds in the reserve, there will be sufficient funds to provide the required open space maintenance
during FY 2004/05. It is recommended that staff carefully monitor the budget process during the next
budget cycle to ensure Council is able to continue to collect sufficient funds for the proposed maintenance.
~-I
I
Page 2, Item L
Meeting Date 6/15/04
Eventually, once excess funds are no longer available, the budgets and/or maintenance services will need to
be reduced, or the property owners will have to approve, by ballot, an increase in their assessment to cover
the maintenance costs.
Because this District was formed as a result of a 100% petition by the landowners and the assessment is not
being raised above the allowable inflation factor, as provided for in the Municipal Code, this District is
exempt from the provisions of Proposition 218.
FISCAL IMPACT:
The total General Fund reimbursement for City staff services from Open Space District 10 is estimated to be
$12,204. The General Services Department including Engineering, Public Works Operations and Parks
Open Space, the Finance Department and MIS, all generate staff costs associated with the Open Space
program. Contractual and other maintenance costs totaling $70,048 are listed in Attachment 2. These costs
are recovered through the OSD collectible and reserves, causing no net fiscal impact.
ATTACHMENTS:
I. District Map
2. Cost Summary
J: IEngineerlA G ENDA IOSDist / 0 _FYO4-05. ap. cb. doc
/p--?
ATTACHMENT 1 -
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Open Space District # 10
EI Rancho del Rey 6 & Case del Rey
FISCAL YEAR 200412005 200312004 200212003
Personal SØlVices
Utility Charges $ 383.00 $ 376.00 $ 343.00
Trash Collection & Disposal Fees 840.00 840.00 840.00
Water Charges 18,295.00 17,878.00 17,078.00
Services to maintain structures, grounds 550.00 550.00 550.00
City Staff SØlVices 12,204.00 10,422.00 11,375.00
Contract Services 32,961.00 32,961.00 30,920.00
Landscape Supplies 739.00 739.00 739.00
Matarials to maintain structures, grounds 380.00 380.00 380.00
Backflow Certification
Professional Services 2,800.00 2,800.00 2,800.00
Supplementals 200.00 200.00 200.00
Other commodities
Advertising
Transfer: Corporate Yard Debt SØlVice 696.00 692.00 1,454.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 70,048.00 $ 67,638.00 $ 66,679.00
Reserve Requirement (1) $ 49,034.00 $ 48,022.00 $ 46,009.00
Reserve Percent 70% 71% 89%
Additional Reserve
Fund Balance (2) 52,232.00 53,503.00 50,657.00
NET ASSESSMENT (3) $ 66,850.00 $ 82,155.00 $ 62,031.00
Equivalent Dwelling Units (EDU's) 658.37 658.37 658.37
ColiectiblelEDU $ 101.54 $ 94.41 $ 94.22
Percent chenge from prior yeatS 8% 0% 1%
COLLECTIBLE - even $ .mount $ lu~.uu. 84.00. 94.00
Revenue from even dollar payment $ 67,154.00 $ 81,887.00 $ 81,887.00
ASSESSMENT $ lU~.10. 99.91. 98.43
Assessment with CPI (4) $ 102.10 $ 99.91
BudgetlEDU $ 106.40 $ 102.73 $ 101.28
Percent chenge from prior yeatS 4% 1% 3%
"'mA"
~
\
-C::,
Notes:
YES
(1) Reserve Requirement=Estimated
Maintenance CosUReserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Addltional Reserve-Fund Balance
(4) CPI change for FY 20O4t2005=2.2%.
See Council Agenda Statement for further explanation.
~
-I
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:I:
s:
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-I
N
Budget more than assmt?
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER'S REPORTS
FOR THE FY 2004/05 SPREAD OF ASSESSMENTS FOR OPEN
SPACE DISTRICT 10; DECLARING THE INTENTION TO
LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THE ASSESSMENT
WHEREAS, pursuant to Article 4, Chapter I, Part 2 of Division 15 of the
California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972"
and Chula Vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the
annual reports for all existing Open Space Maintenance Districts in the City; and
WHEREAS, these reports were prepared by the City Engineer or under his
direction and are presented to Council for approval in order to proceed with the public hearings
set for July 20,2004, in accordance with the Landscaping and Lighting Act of 1972. The report
covers Open Space Districts 10; and
WHEREAS, the proposed assessment for Fiscal Year 2004-2005 is as follows:
Historical and Proposed FY 2004/05 Assessment/Collectible (per EDU)
FY 02/03 FY 03/04 Proposed FY 04/05
OSD 10 Projected
Assessment Assessment Collectible Assessment Collectible Revenue
E! Rancho del Rey 6 & Casa $98.43 $99.91 $94.00 $102.10 $102.00 $67, !54
del Rev
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect
assessments for the FY 2004-2005 for the spread of assessments for City Open Space
Maintenance District 10, a copy of which is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council does hereby set July 20,
2004, at 6:00 p.m. in the City Council Chambers, City ofChula Vista, 276 Fourth Avenue, Chula
Vista, California as the date and time for the public hearing on said assessment.
~-6
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish
said assessment pursuant to Government Code Section 6061.
Presented by
Approved as to form by
Ann ~;5ìJ1 o~
Jack Griffin
Director of General Services
City Attorney
J:\EngineerIAGENDA\ResosIOpen Space IO.doc
iR,(¡;
COUNCIL AGENDA STATEMENT
Item .1-
Meeting Date 6/15/04
ITEM TITLE:
Resolution approving the Engineer's Report for the FY 2004/05
assessment for Open Space District II; declaring the intention to levy and collect
assessments; and setting a public hearing regarding the assessment.
SUBMITTED BY: Director of General Services / City Engineer ~
REVIEWED BY: CityManager~l)C" (4/5thsVote: Yes_NoX)
This is one of four companion agenda items to the primary Open Space assessments agenda item, which
provides all general background information and details regarding the proposed Open Space Districts
assessments for FY 2004/05. The present item includes information specific to Open Space District 11.
RECOMMENDATION: That Council adopt the resolution, and set a public hearing for July 20,2004 at
6:00 p.m.
BOARD/COMMISSIONS: N/A
DISCUSSION:
Open Space District II is located along East H Street between I-80S and Del Rey Boulevard (Attachment I).
General information about this and most other open space districts is contained in the primary Open Space
assessments item, presented on tonight's Council Agenda. Table I, below, compares the current year's
assessment to the proposed assessment for FY 2004/05.
Table 1. Historical and Proposed FY 2004/05 Assessment/Collectible (per EDU)
FY 02103 FY 03/04 Proposed FY 04/05
OSD 11 Projected
Assessment Assessment Collectible Assessment Collectible Revenue
Hidden Vista Village $99.61 $101.10 $100.00 $103.32 $96.00 $126,819
Staff recommends for FY 2004/05 that the assessment remain the same as in FY 2003/04, plus an allowable
inflation factor of 2.2% (please refer to tonight's primary Open Space agenda item for a discussion of the
inflation factor), bringing the proposed assessment to $102.10 per EDU.
Taking into account the estimated maintenance costs for FY 2004/05, and in order to maintain a reserve at or
above the 50% level, staff recommends a collectible of$96.00 per EDU, with a reserve of95% (Attachment
2).
'7-1
Page 2, Item 1
Meeting Date 6/15/04
Because this District was formed as a result of a 100% petition by the landowners and the assessment is not
being raised above the allowable inflation factor, as provided for in the Municipal Code, this District is
exempt from the provisions of Proposition 218.
FISCAL IMPACT:
The total General Fund reimbursement for City staff services from Open Space District II is estimated to be
$22,637. The General Services Department including Engineering, Public Works Operations and Parks
Open Space, the Finance Department and MIS, all generate staff costs associated with the Open Space
program. Contractual and other maintenance costs totaling $134,413 are listed in Attachment 2. These
costs are recovered through the OSD collectible and reserves, causing no net fiscal impact.
ATTACHMENTS:
I. District Map
2. Cost Summary
J:\EngineerIAGENDA IOSDistll_FYO4-05.ap.cb.doc
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Open Space District # 11
H- VIsta Village
FISCAL YEAR 2004I20O5 2003I20O4 2002I20O3
Personal Services
Utility Charges $ 687.00 $ 675.00 $ 616.00
Trash Collaclion & Disposal Fees 4,480.00 4,480.00 4,480.00
Water Charges 37,216.00 35,957.00 34,741.00
Services to maintain structures, grounds 0,400.00 0,400.00 0,400.00
City Staff Services 22,637.00 20,127.00 22,161.00
Contract Services 47,257.00 47,257.00 44,331.00
Landscape Supplies 711.00 711.00 711.00
Materials to maintain structures, grounds 3,440.00 3,440.00 3,440.00
Backflow Certificetlon
Professional Services 6,800.00 6,800.00 6,800.00
Supplementals 440.00 440.00 440.00
Other commod~ies
Advertisino
Transtar: Corporate Yard Debt Service 1,345.00 1,336.00 2,850.00
Special Meintenence Fund
ESTIMATED MAINTENANCE COST $ 134,413.00 $ 130,623.00 $ 129,070.00
Reserve Requirement (1) $ 127,602.00 $ 96,681.00 $ 70,164.00
Reserve Percent 95% 74% 54%
Add~ional Reserve
Fund Balance (2) 135,560.00 94,720.00 69,067.00
NET ASSESSMENT (3) $ 126,545.00 $ 132,564.00 $ 131,067.00
Equivalent Dwelling Un~s (EDU's) 1,321.03 1,321.03 1,321.03
CoIlectiblelEDU $ 95.70 $ 100.35 $ GG.22
Percent change from prior yea'" -5% 1% -2%
COLLECTIBLE - even $ amount 1$ ....00, 100.00, 98.00
Revenue /rom even dollar payment $ 126,610.00 $ 132,103.00 $ 130,762.00
ASSESSMENT I' 103.32, 101.10' 89.61
Assessment with CPI (4) $ 103.32 $ 101.10
BudOetlEDU $ 101.75 $ 96.68 $ 96.39
Percent change from prior yeen¡ 3% 1% 4%
'^AA .
Budget more than assmt?
Notes:
(1 ) Reserve Requlrement=Estimated
Maintenance Cost/Reserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 2OO4t2005=2.2%.
See Council Agenda Statement for further explanation.
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RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER'S REPORTS
FOR THE FY 2004/05 SPREAD OF ASSESSMENTS FOR OPEN
SPACE DISTRICT 11; DECLARING THE INTENTION TO
LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THE ASSESSMENT
WHEREAS, pursuant to Article 4, Chapter I, Part 2 of Division IS of the
California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972"
and Chula Vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the
annual reports for all existing Open Space Maintenance Districts in the City; and
WHEREAS, these reports were prepared by the City Engineer or under his
direction and are presented to Council for approval in order to proceed with the public hearings
set for July 20,2004, in accordance with the Landscaping and Lighting Act of 1972. The report
covers Open Space Districts II; and
WHEREAS, the proposed assessment for Fiscal Year 2004-2005 is as follows:
Historical and Proposed FY 2004/05 Assessment/Collectible (per EDU)
FY 02/03 FY 03/04 Proposed FY 04/05
OSD 11 Projected
Assessment Assessment Collectible Assessment Collectible Revenue
Hidden Vista Village $99.61 $101.10 $100.00 $103.32 $96.00 $126,819
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect
assessments for the FY 2004-2005 for the spread of assessments for City Open Space
Maintenance District II, a copy of which is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council does hereby set July 20,
2004, at 6:00 p.m. in the City Council Chambers, City ofChula Vista, 276 Fourth Avenue, Chula
Vista, California as the date and time for the public hearing on said assessment.
7~5
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish
said assessment pursuant to Government Code Section 6061.
Presented by
Approved as to form by
Jack Griffin
Director of General Services
!~dYh- é~
City Attorney
nEngineeclAGENDA \Resos\Open Space II.doc
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Page 1, Item <¡
Meeting Date 6/15/04
COUNCIL AGENDA STATEMENT
ITEM TITLE:
Resolution approving the Engineer's Report for the FY 2004/05
assessment for Open Space District 14; declaring the intention to levy and collect
assessments; and setting a public hearing regarding the assessment.
SUBMITTED BY: Director of General Services / City Engineer ~
REVIEWED BY: City Manager C(¿: 9~
f~
This is one of four companion agenda items to the primary Open Space assessments agenda item, which
provides all general background information and details regarding the proposed Open Space Districts
assessments for FY 2004/05. The present item includes information specific to Open Space District 14.
(4/5ths Vote: Yes_NoX)
RECOMMENDATION: That Council adopt the resolution, and set a public hearing for July 20,2004 at
6:00 p.m.
BOARD/COMMISSIONS: N/A
DISCUSSION:
Open Space District 14 is located along the north and south of Country Vistas Lane (Attachment 1). General
information about this and most other open space districts is contained in the primary Open Space
assessments item, presented on tonight's Council Agenda. Table I, below, compares the current year's
assessment to the proposed assessment for FY 2004/05.
Table 1. Historical and Proposed FY 2004/05 Assessment/Collectible (per EDU)
FY 02/03 FY 03/04 Proposed FY 04/05
OSD 14 Projected
Assessment Assessment Collectible Assessment Collectible Revenue
Bonita Long Canyon $320.19 $324.99 $281.00 $332.14 $332.00 $289,951
Staffrecommends for FY 2004/05 that the assessment remain the same as in FY 2003/04, plus an allowable
inflation factor of2.2% (please refer to tonight's primary Open Space agenda item for a discussion of the
inflation factor), bringing the proposed assessment to $332.14 per EDU.
Taking into account the estimated maintenance costs for FY 2004/05, and in order to maintain a reserve at or
above the 50% level, staff recommends a collectible of $332.00 per EDU, with a reserve of 67%
(Attachment 2). For this District, the budget will exceed the amount of revenue that can be generated by the
proposed assessment. However, due to available excess funds in the reserve, there will be sufficient funds to
provide the required open space maintenance during FY 2004/05. It is recommended that staff carefully
monitor the budget process during the next budget cycle to ensure Council is able to continue to collect
f;,1
Page 2, Item
Meeting Date 6/15/04
sufficient funds for the proposed maintenance. Eventually, once excess funds are no longer available, the
budgets and/or maintenance services will need to be reduced, or the property owners will have to approve, by
ballot, an increase in their assessment to cover the maintenance costs.
Because this District was formed as a result of a 100% petition by the landowners and the assessment is not
being raised above the allowable inflation factor, as provided for in the Municipal Code, this District is
exempt from the provisions of Proposition 218.
FISCAL IMPACT:
The total General Fund reimbursement for City staff services from Open Space District 14 is estimated to be
$49,953. The General Services Department including Engineering, Public Works Operations and Parks
Open Space, the Finance Department and MIS, all generate staff costs associated with the Open Space
program. Contractual and other maintenance costs totaling $303,391 are listed in Attachment 2. These
costs are recovered through the OSD collectible and reserves, causing no net fiscal impact.
ATTACHMENTS:
I. District Map
2. Cost Summary
J: IEngineerlA GENDA IOSDist/4 _FYO4-05.ap.cb.doc
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Open Space District # 14
Bonita Long Canyon
FISCAL YEAR 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges $ 2,045.00 $ 2,010.00 $ 1,836.00
Trash Collection & Disposal Fees 5,600.00 5,600.00 5,600.00
Water Charges 100,205.00 96,816.00 93,542.00
Services to maintain structures, grounds 1,400.00 1,400.00 1,400.00
City Staff Services 49,953.00 45,538.00 49,685.00
Contract Services 122,729.00 122,729.00 115,130.00
Landscape Supplies 3,176.00 3,176.00 3,176.00
Materials to maintain structures, grounds 4,000.00 4,000.00 4,000.00
Backflow Certification
Professional Services 10,000.00 10,000.00 10,000.00
Supplementals 1,240.00 1,240.00 1,240.00
Other commodities
Advertising
Transfer: Corporate Yard Debt Service 3,043.00 3,023.00 6,382.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 303,391.00 $ 295,532.00 $ 291,991.00
Reserve Requirement (1) $ 201,755.00 $ 198,006.00 $ 192,714.00
Reserve Percent 67% 67% 66%
Additional Reserve
Fund Balance (2) 215,195.00 248,304.00 240,693.00
NET ASSESSMENT (3) $ 289,951.00 $ 245,234.00 $ 244,012.00
Equivalent Dwelling Units (EDU's) 873.36 873.36 873.36
Collectible/EDU $ 331.99 $ 280.79 $ 279.39
Percent change from prior years 18% 1% -1%
COLLECTIBLE - even $ amount $ 332.00 $ 281.00 $ 279.00
Revenue from even dollar payment $ 289,956.00 $ 245,414.00 $ 243,667.00
ASSESSMENT $ 332.14 $ 324.99 $ 320.19
Assessment with CPI (4) $ 332.14 $ 324.99
BudgellEDU $ 347.38 $ 338.39 $ 334.33
Percent chanae from Drior years 3% 1% 4%
__OMO.
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Budget more than assm!?
Notes:
YES
(1) Reserve Requirement=Estimated
Maintenance Cost/Reserve Percent
(2) Estimated fund balance as of June 30
of each year
(3) Net Assessment=Estimated Maintenance Cost+
Reserve Requirement+Additional Reserve-Fund Balance
(4) CPI change for FY 200412005=2.2%
See Council Agenda Statement for further explanation.
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RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER'S REPORTS
FOR THE FY 2004/05 SPREAD OF ASSESSMENTS FOR OPEN
SPACE DISTRICT 14; DECLARING THE INTENTION TO
LEVY AND COLLECT ASSESSMENTS; AND SETTING A
PUBLIC HEARING REGARDING THE ASSESSMENT
WHEREAS, pursuant to Article 4, Chapter I, Part 2 of Division 15 of the
California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972"
and Chula Vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the
annual reports for all existing Open Space Maintenance Districts in the City; and
WHEREAS, these reports were prepared by the City Engineer or under his
direction and are presented to Council for approval in order to proceed with the public hearings
set for July 20, 2004, in accordance with the Landscaping and Lighting Act of 1972. The report
covers Open Space District 14; and
WHEREAS, the proposed assessment for Fiscal Year 2004-2005 is as follows:
Historical and Proposed FY 2004/05 Assessment/Collectible (per EDU)
FY 02/03 FY 03/04 Proposed FY 04/05
OSD 14 Projected
Assessment Assessment Collectible Assessment Collectible Revenue
BOIuta Long Canyon $320.19 $324.99 $281.00 $332.14 $332.00 $289,951
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect
assessments for the FY 2004-2005 for the spread of assessments for City Open Space
Maintenance District 14, a copy of which is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council does hereby set July 20,
2004, at 6:00 p.m. in the City Council Chambers, City ofChula Vista, 276 Fourth Avenue, Chula
Vista, California as the date and time for the public hearing on said assessment.
f~.5
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish
said assessment pursuant to Government Code Section 6061.
Presented by
Approved as to form by
Jack Griffin
Director of General Services
~Jf1t c~
Ann e
City Attorney
rlEngineerlAGENOAIResoslOpen Space 14.doc
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COUNCIL AGENDA STATEMENT
Item 2-
Meeting Date 6/15/04
ITEM TITLE:
Resolution approving the Engineer's Report for the FY 2004/05 Open
Space assessment for Eastlake Maintenance District No.1; declaring the intention to
levy and collect assessments; and setting a public hearing regarding the assessment
SUBMITTED BY:
Director of General Services / City Engineer {)if
City Manager o/;or-
(4/5ths Vote: Yes_NoX)
REVIEWED BY:
This is one of four companion agenda items to the primary Open Space assessments agenda item, which
provides all general background information and detail on the proposed Open Space District assessments for
FY 2004/05. The present item includes information specific to Eastlake Maintenance District No 1.
RECOMMENDATION: That Council adopt the resolution, and set a public hearing for July 20,2004 at
6:00 p.m.
BOARDS/COMMISSIONS: N/A
DISCUSSION:
Eastlake Maintenance District No.1 is a large open space district consisting of Eastlake Hills, Shores and
Business Center I, Eastlake Greens, the Olympic Training Center, and Salt Creek I which was originallypart
ofEastlake's projects (see Attachment I). Because this is a large district of various developments and not all
of the items to be maintained have a benefit to the entire district, the district is made up of five (5) zones as
indicated in Table 1, below. Note that most open space within Eastlake 1 and Eastlake Greens is privately
maintained by homeowners' associations. On the other hand, all of the open space in Salt Creek I is
maintained by the Open Space District.
Staff recommends that the assessments for each zone remain the same as in FY 2003/04, plus an allowable
inflation factor of2.2% (please refer to tonight's primary Open Space agenda item for a discussion of the
inflation factor). The amount to be collected against the assessment (the "collectible") is either equal to or
less than the proposed assessment based on budgeted expenditures, the reserve requirement, savings and
fund balances, eamed interest, and prior years' savings. Table I outlines the assessment recommendation
and collectible for each of the five zones. The recommended reserve amount for each zone varies ITom 61 %
to 97%. Reserves of this size stabilize the collectible amounts and offset future cost increases.
q-/
Page 2, Item q
Meeting Date 6/15/04
Table 1. Historical and Proposed FY 2004/05 Assessment/Collectible, per EDU
Eastlake Maintenance FY 02/03 FY 03/04 Proposed FY 04/05
District #1 Assessment Collectible Assessment Assessment Collectible Projected
Revenue
Otay Lakes Road (1) - - (3)
Zone A -Eastlake 1 $11.05 $7.92 $11.22 $11.47 $11.00 (3)
Zone B - Eastlake Greens 18.07 11.36 18.34 18.74 14.00 (3)
Zone C - Olympic Training Center 149.65 4.12 151.89 155.23 5.00 (3)
Zone D - Salt Creek 1 199.59 163.83 202.58 207.04 207.00 (3)
Zone E - Telegraph Canyon Channel (2) 28.45 4.45 28.88 29.52 19.00 (3)
(1) Zones A-D share in the cost ofOtay Lakes Road medians and off-site parkways.
'" Portions of Eastlake 1 and Eastlake Greens are in this benefit area.
(J) Revenue for all zones combined is $248,194.
Salt Creek I
The expenditures for Zone D will exceed the amount of revenue that can be generated by the proposed
assessment. However, the availability of sufficient reserves for Zone D will ensure that the City will provide
the required maintenance during FY 2004/05. It is recommended that staff carefully monitor the budget
process during the next budget cycle to ensure Council is able to continue to collect sufficient funds for the
proposed maintenance. Eventually, budgeted expenditures for maintenance of this zone will need to be
reduced, or the property owners will have to approve, by ballot, an increase in their assessment to cover the
maintenance costs.
Olympic Training Center
It is important to note that the current assessment for Zone C of Eastlake Maintenance District No. I
(Olympic Training Center) is historically higher than needed. There are two primary reasons for the
disparity. The assessment initially included the maintenance ofWueste Road slopes and paths; however,
these areas are now maintained privately by the Olympic Training Center as outlined in an agreement with
the City (Resolution 18528). In addition, maintenance of an infiltration basin located at Wueste Road and
Olympic Parkway, although now included in Zone C, will ultimately be shared between two other benefiting
areas (portions of Eastlake Woods and Vistas). Currently, the basin is privately maintained by Eastlake.
FISCAL IMPACT: The total General Fund reimbursement for City staff services from Eastlake
Maintenance District No. I is estimated to be $48,021. The General Services Department including
Engineering, Public Works Operations and Parks Open Space, the Finance Department and MIS, all generate
staff costs associated with the Open Space program. Contractual and other maintenance costs totaling
$281,217 are listed in Attachment 2. These costs are recovered through the OSD collectible and reserves,
causing no net fiscal impact.
Attachments:
I. District Map
2. Cost Summary
J: IEngineerlA GENDA IOSDistELMD#l A 1 FYO4-05.ds.ch. doc
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Open Space District # East/ake Maintenance
District #1
FISCAL YEAR 2004/2005 2003/2004 2002/2003
Personal Services
Utility Charges $ 4,229.00 $ 4,157.00 $ 3,795.00
Trash Collection & Disposal Fees 560.00 560.00 560.00
Water Charges 94,439.00 91,245.00 88,159.00
Services to maintain structures, 9rounds 3,410.00 3,410.00 3,410.00
City Staff Services 48,021.00 41,879.00 45,986.00
Contract Services 106,939.00 106,939.00 100,692.00
Landscape Supplies 1,090.00 1,090.00 1,090.00
Materials to maintain structures, grounds 17,450.00 17,450.00 17,450.00
Backflow Certification
Professional Services 1,200.00 1,200.00 1,200.00
Supplementals 1,080.00 1,080.00 1,080.00
Other commodities
Advertising
Transfer: Corporate Yard Debt Service 2,799.00 2,780.00 5,184.00
Special Maintenance Fund
ESTIMATED MAINTENANCE COST $ 281,217.00 $ 271,790.00 $ 268,606.00
Reserve Requirement (1)
Reserve Percent
Additional Reserve
Fund Balance (2)
NET ASSESSMENT (3)
Equivalent Dwelling Units (EDU's)
Coliectible/EDU See attached worksheet for
Percent change from prior years Eastlake Maintenance District #1
COLLEcrlBLE - even $ amount
Revenue from even dollar payment
ASSESSMENr
Assessment with CPI (4)
BudgeUEDU
Percent change from prior years
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(1) Reserve Requirement=Estimated
Maintenance CosUReserve Percent
(2) Estimated fund balance as of June 30
of each year
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ATTACHMENT 2
Eastlake Maintenance District #1 FY 2004/2005
BUDGET WORKSHEET
Overall Zone A Zone B Zone C Zone D Zone E
OLR Eastlake I Greens OTC Salt Creek TC Channel TOTAL
Budget 35,000 86,682 42,664 1,573 107,937 7,360 281,216
Reserve Requirement 31,325 84,168 38,824 1,309 66,257 5,973 227,856
Reserve percent 90% 97% 91% 83% 61% 81%
Special Reserve 0 0 99 0 0 32,8681 32,967
Total Funds Required 66,326 170,851 81,588 2,883 174,195 46,2011 542,044
Less total amount in reserve 33.478 86,300 42.416 1,583 91,208 38,866 237,794
Net payment 32,848 84,551 39,172 1,300 82,987 7,336 248,194
Participating ADT's 137,045 98,286 33,759 5,000 4,234 386 278,710
FY 04/05 Net paymenUEDU 2.40 8.60 11.60 2.60 196.00 19.00
FY 03/04 Net paymenUEDU 1.72 6.20 9.64 2.40 155.91 4.45
FY 04/05 CosUEDU 2.55 8.82 12.64 3.15 254.93 19.06
FY 03/04 CosUEDU 2.55 8.45 12.03 3.04 246.38 18.84
FY04/05 PaymenUEDU w/OLR 11.00 14.00 5.00 198.40 19.00
FY 04/05 CosUEDU w/OLR \ 11.37 t5.19 5.70 257.48 19.06
FY04/05 assessmenUEDU w/OLR 11.47 18.74 155.23 20704 29.52
Zone NOLR
Zone B/OLR
Zone C/OLR
Zone D/OLR plus Zone A
Zone E
Assmnt Assmnt Assmnt Payment Payment Assmnt> Cost>
FY 02/03 FY 03/04 FY 04/05 FY 03/04 FY 04/05 Payment assessment
11.05 11.22 11.47 7.92 11.00 Yes No
18.07 18.34 18.74 11.36 14.00 Yes No
149.65 151.89 155.23 4.12 5.00 Yes No
199.59 202.58 207.04 163.83 207.00 Yes Yes
28.45 28.88 29.52 4.45 19.00 Yes No
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Notes:
1. OLR shown as part of Zone A, B, C & D.
2. Budget for OLR is for ELMD1 only.
3. Zone A budget includes OLR.
4. Estimated Fund Balance as of 6/30/04= $237,909.00
5. OLR, Zones A-D are based on 10 ADT/EDU
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j:\engineerlopen space districts\2004-2005 Eastlake Worksheet_Amy
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RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE ENGINEER'S REPORTS
FOR THE FY 2004/05 SPREAD OF ASSESSMENTS FOR
EASTLAKE MAINTENANCE DISTRICT NO.1; DECLARING
THE INTENTION TO LEVY AND COLLECT ASSESSMENTS;
AND SETTING A PUBLIC HEARING REGARDING THE
ASSESSMENT
WHEREAS, pursuant to Article 4, Chapter I, Part 2 of Division 15 of the
California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972"
and Chula Vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the
annual reports for all existing Open Space Maintenance Districts in the City; and
WHEREAS, these reports were prepared by the City Engineer or under his
direction and are presented to Council for approval in order to proceed with the public hearings
set for July 20, 2004, in accordance with the Landscaping and Lighting Act of 1972. The report
covers Eastlake Maintenance District No.1; and
WHEREAS, the proposed assessment for Fiscal Year 2004-2005 is as follows:
Historical and Proposed FY 2004/05 Assessment/Collectible, Der EDU
Eastlake Maintenance FY 02/03 FY 03/04 Proposed FY 04/05
District #1 Assessment Collectible Assessment Assessment Collectible Projected
Revenue
Olav Lakes Road (1) - - (3)
Zone A -Eastlake 1 $11.05 $7.92 $11.22 $11.47 $11.00 (3)
Zone B - Eastlake Greens 18.07 11.36 18.34 18.74 14.00 (3)
Zone C - Olympic Training 4.12 5.00
Center 149.65 151.89 155.23 (3)
Zone D - Salt Creek 1 199.59 163.83 202.58 207.04 207.00 (3)
Zone E - Telegraph Canyon 28.45 4.45 28.88 29.52 19.00
Channel (2) (3)
(1) Zones A-D share in the cost of Otay Lakes Road medians and off-site parkways.
(2) Portions of Eastlake 1 and Eastlake Greens are in this benefit area.
(3) Revenue for all zones combined is $248,194.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the Engineer's report to declare its intention to levy and collect
assessments for the FY 2004-2005 for the spread of assessments for City Eastlake Maintenance
Distirct No.1, a copy of which is on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council does hereby set July 20,
2004, at 6:00 p.m. in the City Council Chambers, City ofChula Vista, 276 Fourth Avenue, Chula
Vista, California as the date and time for the public hearing on said assessment.
q-/p
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish
said assessment pursuant to Government Code Section 6061.
Presented by
Approved as to form by
!~)~~~
City Attorney
Jack Griffin
Director of General Services
J o\Eng;neecIAG ENDA \Resos\ELMD# I.doc
C¡;1
CITY COUNCIL AGENDA STATEMENT
ITEM NO.:
MEETING DATE:
f{)
6/15/04
ITEM TITLE:
CONSIDERATION OF AN AFFORDABLE HOUSING REGULATORY
AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SHEA
HOMES FOR THE ROLLING HILLS RANCH COMMUNITY
RESOLUTION APPROVING THE AFFORDABLE HOUSING
REGULATORY AGREEMENT FOR THE DEVELOPMENT OF 32 UNITS
AFFORDABLE TO LOW INCOME BUYERS BETWEEN THE CITY OF
CHULA VISTA AND SHEA HOMES FOR THE ROLLING HILLS RANCH
COMMUNITY AND AUTHORIZING THE MAYOR TO EXECUTE THE
AGREEMENT
5UBMInED BY:
REVIEWED BY:
COMMUNITY DEVELOPMENT DIRECTOR
CITY MANAGER r \)C"
4/5TH5 YOTE: YES D NO 0
BACKGROUND
On June 17, 1997, the City of Chula Vista and Pacific Bay Properties, a California Corporation,
entered into an Affordable Housing Agreement for the real property in the City of Chula Visto, then
commonly known as the Salt Creek Ranch plonned development (the "Property"). The Solt Creek
Ranch area was later sold to McMillin Rolling Hills Ranch, LLC, a Delaware limited liobility company
("Developer").
As part of the Affordable Housing Agreements the City and Pacific Bay Properties executed two
project-specific affordoble housing ogreements. The first ogreement pertained to a 116-unit low-
income senior apartment complex, which has since been constructed ond occupied ond is now
known as Rolling Hills Garden. The Second Agreement pertained to a 168-unit apartment complex,
of which 32 units would be designated as affordable to low income households. The 168-unit
apartment complex was never constructed, and on October 21, 2003, the City Council approved
the Developer's request to amend and restate the Second Affordoble Housing Agreement to provide
the Developer with the flexibility of developing the site with 0 for-sale or rental development and
odjusting the timing requirements for the provision of these units.
In 2003, McMillin Rolling Hills Ranch and Sheo Homes ("Builder") finalized their agreement allowing
the Builder to purchase the affordable housing site. At this time, Builder desires to satisfy the
affordable housing obligotion through a for-sale project, the detoils of which are contained within
the Affordable Housing Regulotory Agreement ("Regulatory Agreement") contemplated herein.
;0-1
PAGE 2, ITEM NO.:
MEETING DATE:
{~
6/15/04
RECOMMENDATION
That Council adopt the resolution approving the Affordable Housing Regulatory Agreement
between the City and Shea Homes for Rolling Hills Ronch and authorizing the Mayor to execute
such Agreement on behalf of the City.
BOARDS/COMMISSIONS RECOMMENDATION
The Design Review Committee provided comments at one informal review of the Project
conducted on December 15, 2003. On January 26,2004, the DRC considered the application
to allow the construction of 167 units of for-sale housing and unonimously recommended
adoption of DRC-04-17.
DISCUSSION
Under the City's Bolanced Communities Policy of the Housing Element, the Developer has an
obligation to provide 10 percent of those new residential housing units within the Project as
affordable to low and moderate-income families (5% low and 5% moderote). Based on units
constructed, final maps and tentative maps for Rolling Hills Ranch to date, a total of 2,352
residential housing units are onticipated. The Developer hos on obligation to provide 118 units
affordable to low income households and 118 offordable to moderote income households within
the Project.
To date, the Developer has constructed 86 units affordable to low income households and 118
units offordable to moderote income households. Therefore, the remaining affordable housing
obligation is 32 units affordoble to low income households. Based upon the approved amended
and restated second Affordoble Housing Agreement, the Developer will be constructing the
remoinder of the affordable housing units within neighborhood 4A in Rolling Hills Ronch.
The development will include a total of 167 units, of which, 32 will be avoilable as low-income
units. The development will contain 0 mix of bedroom sizes. The 32 low-income units will
include 11 two bedroom units, 11 two bedroom plus 0 bonus room units and 10 three bedroom
units. The units will range in size from 1,410 to 1,560 square feet, each with its own 2-car
garage, two to three bedrooms and three to four baths. The development will have significant
community amenities including a pool, spa, and barbeque facilities with sundeck area, children's
tot lot, and access to the community's troil system. The residents will also hove access to the
amenities within the master planned community of Rolling Hills Ranch.
Affordable Housina Reaulatorv Aareement
The Agreement detoils the occord between the City and Builder regarding the development of the
proposed offordable for-sale units ond the satisfoction of the Developer's remaining offordable
housing obligation. The Agreement includes detailed information regarding the Builder's
){)-;J-
PAGE 3, ITEM NO.:
MEETING DATE:
ID
6/15/04
guidelines and requirements for the development of the project and employs the recently
approved Affordable For Sale Housing Policy as the basis for the Agreement.
The Affordable For Sale Housing Policy consists of a number of key principles thot govern oil such
developments. The two primary components of the development guidelines include the
establishment of a Second Trust Deed that is extended to the Homebuyer in favor of the City and
on equity shore system, implemented over a 45-yeor period, that is based upon the Homebuyer's
length of occupancy. The Policy also requires that all "affordable" units will be sold to buyers
meeting both the income-based and cost-bosed measures of affordability, and includes 0
number of underwriting criterio as well as Buyer Selection Criteria. In addition to the Buyer
Selection Criteria there will also be additional consideration given to larger families for the larger
units as described within the Affordable For Sale Housing Policy.
The primary prerequisite for low-income buyers is that they be income qualified, earning no more
than 80% of the Area Medion Income. Pleose refer to the chart below for maximum income
figures.
Annual Income
$38,350
$43,850
$49,300
$54,800
Although the Affordable For Sale Housing Policy is the foundation for this Agreement, there are
additional requirements outlined within the Regulatory Agreement that are specific to this
development including the condition that buyers must meet the federal definition of a First-time
homebuyer, defined as an individual who has not owned property within the lost three yeors.
This is consistent with the objective of developing affordable homeownership opportunities for
low-income buyers.
CEQA Compliance
The proposed Agreement for Rolling Hills Ranch has been reviewed for compliance with CEQA. The
proposed Agreement is a mechanism for implementation of affordable housing within the
prescribed densities and maximum unit count of the Rolling Hills Ranch General Development Plan
and SPA Plan. Approval and execution of the Agreement would not, therefore, result in the
construction of any housing beyond that anticipated in the GDP and SPA Plans and the
environmentol review documents previously certified for those plans. Therefore, no additional
CEQA action is necessary.
FISCAL IMPACT
The Developer has paid all costs associated with the processing of the Affordable Housing
Agreement and Affordable Housing Regulatory Agreement.
/¡J-~
PAGE 4, ITEM NO.:
MEETING DATE:
IC
6/15/04
Upon sale, transfer, refinance, or change in title of the affordoble unit, the Cify will receive
repayment of the silent second loan and any additionol equify share. Bosed on the formula
provided in the Cify's Affordable For-sole Housing Policy, the silent second loon amount is the
difference befween the market rote price and the affordable price, established at the time of sale
by the Builder. No expenditure or allocation of Cify funds is required; therefore, there is no fiscal
impact.
AnACHMENTS
1. Locator Map
2. Affordable Housing Regulatory Agreement for Rolling Hills Ranch
J:\COMMDE\IISI'AFF.REI'\O6-1!X!4\Shea Homes Aff Hsg Reg Agreementdoc [6/3/04; 8;37 AM]
/0-'1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE AFFORDABLE HOUSING REGULATORY AGREEMENT
RELATED TO ROLLING HILLS RANCH BETWEEN THE CITY AND SHEA
HOMES AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT
WHEREAS, on June 17, 1997, the City of Chula VISta and Pacific Bay Properties ("Pacific Bay")
executed an Affordable Housing Agreement as Document No. 1997-0400741 (the "1997 Affordable Housing
Agreemenr) as recorded by the San Diego County Recorder's Office for the real property then known as Salt
Creek Ranch for purposes of further implementing the Developer's affordable housing obligation under the City's
Balanced Communities Policy of the Housing Element of the General Plan. The Property is now commonly known
as Rolling Hills Ranch; and
WHEREAS, to satisfy the low income housing requirements of the 1997 Affordable Housing
Agreement, the City and Pacific Bay entered into two project specific affordable housing agreements. The first
agreement, recorded April 17, 2000 as File No. 2000-01~2 of Official Records ("First Agreement"),
pertained to a 116-unit low-income senior apartment complex, which has since been constructed and occupied
and is now known as Rolling Hills Garden. The second agreement, recorded June 13, 2001 as File No. 2001-
0397488 of Official Records pertained to a 168-unit apartment complex for Neighborhood 4A, of which 32 units
would be designated as affordable to low income households. The 168-unit apartment complex was not
constructed; and
WHEREAS, compliance with both the First and Second Agreement is necessary to satisfy the
low income housing obligations of the Project under the 1997 Affordable Housing Agreement; and
WHEREAS, Based on units constructed, final maps and tentative maps for Rolling Hills Ranch
to date, a total of 2,352 residential housing units are anticipated, and therefore, the Developer has an
obligation to provide 118 units affordable to low income households and 118 affordable to moderate income
households; and.
WHEREAS, to date, the Developer has constructed 86 units affordable to low income
households and 118 units affordable to moderate income households. Therefore, the remaining affordable
housing obligation is 32 units affordable to low income households; and
WHEREAS, on October 21,2003, the City Council approved the Developer's request to amend
and restate the Second Affordable Housing Agreement to provide the Developer with the flexibility of
developing the site with a for-sale or rental development and adjusting the timing requirements for the
provision ofthese units; and
WHEREAS, Shea Homes desires to satisfy the affordable housing obligation through a for-sale
project, the details of which are contained within the Affordable Housing Regulatory Agreement; and
WHEREAS, this Affordable Housing Regulatory Agreement implements affordable housing
requirements and impacts previously analyzed in the certified EIR for the Salt Creek Ranch GDP and SPA
Plan, therefore, no additional action is required under CEOA
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that this
City Council does hereby approve in the form presented the Affordable Housing Regulatory Agreement related
to Rolling Hills Ranch, a copy of which shall be kept on file in the Office of the City Clerk.
/P-~
BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to
execute said Affordable Housing Regulatory Agreement with Shea Homes for and on behalf of the City of
Chula Vista.
Presented by
Approved as to fonn by
ß~~~
City Attorney
Laurie Madigan
Community Development Director
[Do] J:ICOMMDEVlRESOS\6-1S-04\Shea Homes Aft Hag Reg Agreemenldoc
/0-1
2
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
~kJ ¡þd
Ann M~
City Attorney
Dated:
Affordable Housing Regulatory Agreement
For the development of 32 units affordable to low income buyers
Between the City ofChula Vista and Shea Homes for
The Rolling Hills Ranch Community
/0-8
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City of Chula Vista
276 Fourth Avenue
Chu1a Vista CA 91910
Attn: Planning & Housing Manager
No fee for recording pursuant to
Government Code Section 27383
(Space above for Recorder's Use)
AFFORDABLE HOUSING REGULATORY AGREEMENT
THIS AFFORDABLE HOUSING REGULATORY AGREEMENT (the "Agreement") is entered into as
of June --' 2004, between the CITY OF CHULA VISTA, a municipal corporation ("City"), and SHEA
HOMES, a California limited partnership ("Developer") and/or its successors or assignees.
ARTICLE 1- Recitals
1.1 Authoritv. City is a municipal corporation, organized and existing under the laws of the
State of California. City is authorized to enter into binding agreements for the purpose of protecting
public health, safety, and welfare.
1.2 Developer. Developer is the legal owner of the fee title to the real property which is
described in the attached Exhibit "A", which is hereby incorporated herein (the "Real Property"). The
Real Property will be a condominium project established pursuant to Section 1350, et seq. of the
California Civil Code. The Real Property is currently unimproved.
1.3 Project. Developer proposes to construct a multifamily housing project (the "Project")
with 167 townhome condominiums. Each condominium dwelling unit in the Project is refelTed to as a
"Unit" in this Agreement. The Project will consist of thirty-two (32) Units affordable to Low Income
Buyers, with the remaining one hundred thirty-five (135) Units unrestricted in any manner by this
Agreement. The one hundred thirty-five (135) unrestricted Units are referred to as the "Unrestricted
Units".
1.4 Implementation ofCitv Council Resolution 18703. This Agreement is intended to satisfy
the requirement of City Council Resolution 18703 which requires that, as a condition to issuance of
building permits, an Affordable Housing Agreement be entered into between City and Developer whereby
Developer agrees to provide a specified percentage of the Units as low income housing. The parties
intend that this Agreement constitute the agreement refelTed to in City Council Resolution 18703.
1.5 Implementation of Citv Council Policv No. 453-02. This Agreement is also intended to
implement City Council Policy No. 435-02 which became effective on December 9, 2003.
1.6 Binding On Successive Owners. Pursuant to California Government Code
Section 27281.5, the parties intend that this Agreement constitute an encumbrance against the Real
Property (other than the Unrestricted Units) which, during the Term of this Agreement, is binding on the
owners and successive owners of the Real Property for the benefit of the City.
NOW THEREFORE, THE CITY AND DEVELOPER HEREBY AGREE AS FOLLOWS:
City of Chola Vistaffrimark Pacific
Affordable Housing Agreement
24426-44/ ~~
/tJ-1
06/98~4
ARTICLE 2- Definitions
The following definitions apply for purposes of this Agreement:
2.1 "Area Median Income" means the latest median income :!Tom time to time determined
by the United States Department of Housing and Urban Development (pursuant to Section 8 of the United
States Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area, and as established
by regulation of the State of California pursuant to Health and Safety Code Section 50093.
2.2 "Buyer-Elected Options and Upgrades" means options and upgrades included in a Unit
that are not included within the plans and specifications for standard production Units and that are paid
for in cash by the buyer.
2.3 "Buyer-Qualified Interest Rate" means the interest rate a Low Income Buyer qualifies
for and obtains under a loan, the proceeds of which are used to purchase the Low Income Unit.
2.4 "Low lucome Buyers" means individuals or families with an income which does not
exceed eighty percent (80%) of the Area Median Income, as adjusted for household size; provided,
however, all income :!Tom members of the household who are under the age of twenty-three (23) years old
and are full-time students, upon submission to the City of sufficient verification thereof, shall be excluded
:!Tom the calculation of a Low Income Buyer's income.
2.5
"Low Income Affordable Sales Price" shall be determined pursuant to Section 4.3
below.
2.6 "Low Income Unit" means any of the thirty-two (32) Units which shall be sold by
Developer to a Low Income Buyer at the Low Income Affordable Sales Price and occupied by a Low
Income Buyer.
2.7 "Low Income Unit Marketing Period" means the period commencing on the fIrst day
the first Low Income Unit is marketed to Low Income Buyer in the public pursuant to all normal State of
California Department of Real Estate regulations and upon approval by the City and continuing for ninety
(90) days thereafter, during which period Developer shall market the two (2), three (3) and four (4)
bedroom Low Income Units pursuant to Sections 4.4, 4.5 and 4.6.
2.8
"Market Rate Price" shall be as described in Section 4,2 below.
2.9 "Monthly Housing Cost" means the sum of monthly payments for all of the following
with respect to a Low Income Unit:
2.9.1 Principal and interest, amortized over thirty (30) years, at the then current fixed
interest rate, on purchase price fIrst trust deed secured loan for a Unit;
2.9.2 Any special tax district assessments, Mello-Roos special taxes, prorated monthly,
which apply to the Unit;
2.9.3
The monthly homeowners association regular assessments which apply to the
Unit; and
Shea Homes/Rolling Hills Ranch
Affordable Housing Agreement
24426-44/~19611724
2
/()-/O
6/1)gQ2/04
2.9.4 A reasonable allowance for real estate taxes and insurance not included in the
above costs, prorated monthly.
2.10
applicable.
2.11
"Mortgage Amount" shall be as described in Section 4.3.1 or 4.3.2 whichever is
"Planning and Housing Manager" means the Planning and Housing Manager of the
City.
2.12 "Silent Second Note" means the promissory note made by a Low Income Buyer in favor
of the City which is equal to the difference between the Market Rate Price and the Low Income
Affordable Price of a Low Income. The fonD of the Silent Second Note shall be as set forth on Exhibit
"ß" attached hereto.
2.13 "Silent Second Trust Deed" means the deed of trust which secures a Silent Second
Note. The fonD of the Silent Second Trust Deed shall be as set forth on Exhibit "c" attached hereto.
ARTICLE 3- Development Standards
The pennitted uses of the Real Property, the density of use thereof, the maximum height and size
of buildings thereon, and provisions for reservations or dedication of land for public purposes and all
other standards of development of the Real Property will be governed by each of the following as
presently constituted ("the Development Standards"):
3.1
General Plan. Multi-family Residential (MF) designation in the City's General Plan.
3.2
Zone Rel!1l1ations. The regnlations for Planned Community.
3.3 Desi!!D Review. The Design Review Committee's approval of the project as referenced
in DRC-04-07 and any exhibits referred to therein at its meeting on January 26, 2004.
3.4 Parkin!!. Developer shall provide no less than 334 2-car garages and 65 guest parking
spaces for a total of 399 parking spaces as consistent with Section 19.62.050 (13) of the City of Chula
Vista Municipal Code.
3.5 ODen SDace. Developer shall provide 87,718 square feet of common useable open space,
including courtyards and landscaping, and one 10,457 square feet of common recreation area including
picnic/barbeque facilities, pool, spa, tot lot and a balcony or patio area for each Unit consistent with the
approved Design Review Committee application (DRC 04-07).
ARTICLE 4- Marketin!! of Low Income Units
4.1 Low Income Units. Of the one hundred sixty-seven (167) Units in the Project, Developer
shall sell thirty-two (32) Units only to Low Income Buyers. The sales price of each such Unit shall be the
Market Rate Price, with the Silent Second Note being in original principal amount equal to the difference
between the Market Rate Price and the Low Income Affordable Price of a Low Income Unit. A Silent
Second Note shall be secured by a Silent Second Trust Deed encumbering the Low Income Unit which is
sold to a Low Income Buyer. The Silent Second Deed of Trust shall be subordinate in priority to the
institutional trust deed loan ("First Trust Deed Loan") which Buyer obtains to purchase the property.
3
She. HomeslRolling Hills Ranch
Affordable Housing Agreement
24426-44/~~
/(J'//
6/G82WO4
4.2 Market Rate Price. The Market Rate Price for the Low Income Units shall initially be the
amounts set forth in the attached Schedule "I". Pursuant to the procedures set forth in this Section 4.2,
and subject to the City's prior written approval, which approval shall not be unreasonably withheld,
conditioned or delayed, the Market Rate Prices for the Low Income Units in an upcoming phase may be
revised at any time prior to the release of such phase. No less than ten (10) days prior to the scheduled
release date of a phase, Developer shall submit to the City Developer's proposed revisions, if any, to the
Market Rate Prices for the Low Income Units in such phase. Within such five (5) day period the City
shall approve or disapprove such proposed revisions. If the City disapproves and objects to Developer's
proposed revisions within such five (5) day period, Developer may re-submit further revisions to the
Market Rate Prices to address the City's grounds for objection, and the City shall thereafter have five (5)
days to approve or disapprove Developer's proposed revisions. If, however, the City fails to approve or
disapprove Developer's proposed revisions within the five (5) day period, Developer's proposed revisions
shall be deemed approved.
4.3 Calculation of Low Income Affordable Sales Price. The Low Income Affordable Sales
Price of a Unit shall be the sum of the Mortgage Amount, a down payment of 3% of the Low Income
Affordable Sale Price.
4.3.1 The Mortgage Amount - FHA Insured Loans. For FHA insured loans, the
Mortgage Amount for Low Income Buyers shall be a fIrst trust deed loan in that original principal amount
which requires equal monthly payments, amortized over thirty (30) years at the Buyer Qualified Interest
Rate, which when added to the other Monthly Housing Costs results in Monthly Housing Costs that equal
28.8% (that is 36 % times 80 %) of the Area Median Income, as adjusted for household size appropriate
to the Affordable Housing Unit as specified in Section 4.9.3 below. The Buyer Qualified Interest Rate
must remain fIXed for at least the first five (5) years of the term of the FHA insured loan.
4.3.2 The Mortgage Amount - Conventional Loans. For conventional loans, the
Mortgage Amount for Low Income Buyers shall be a fIrst trust deed loan in that amount which requires
equal monthly payments, amortized over thirty (30) years at the Buyer Qualified Interest Rate, which
when added to the other Monthly Housing Costs results in Monthly Housing Costs that equal 32% (that is
40 % times 80 %) of the Area Median Income, as adjusted for household size appropriate to the
Affordable Housing Unit as specified in Section 4.9.3 below. The Buyer Qualified Interest Rate must
remain fIXed for at least the fIrst five (5) years of the term of the conventional loan.
4.3.3 Minimum Low Income Affordable Sales Price. The calculation of the Low
Income Affordable Sales Price for a Low Income Unit pursuant to this Section 4.3 shall in no event be
less than the amount below for the corresponding type of Low Income Unit:
Unit Size
Minimum Low
Affordable Sales Price
Income
Two (2) Bedroom
Three (3) Bedroom
Four (4) Bedroom
$152,000
$182,000
$208,000
4.4 Marketing of 2 BR Low Income Units. During the fIrSt 90-days of marketing, each two
(2) bedroom Low Income Unit shall be marketed by Developer only to persons who qualify as Low
Income Buyers with households of three (3) persons or more.
4
Shea HomesIRolling Hills Ranch
Affordable Housing Agreement
24426-44/ ~~
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6/GSWO4
4.5 Marketim! of 3 BR Low Income Units. During the fIrst 90-days of marketing, each three
(3) bedroom Low Income Unit shall be marketed by Developer only to persons who qualify as Low
Income Buyers with households of five (5) persons or more.
4.6 Marketinll of 4 BR Low Income Units. During the fIrSt 90-days of marketing, each four
(4) bedroom Low Income Unit shall be marketed by Developer only to persons who qualify as Low
Income Buyers with households of six (6) persons or more.
4.7 After the Low Income Unit Marketinll Period. After the Low Income Unit Marketing
Period, Developer may market any remaining Low Income Units which are affordable to Low Income
Buyers with any household size. Developer shall deliver to the City written notice of the first day and the
last day of the Low Income Unit Marketing Period. The tennination of the Low Income Unit Marketing
Period will be evidenced by written notice to Developer from the City.
4.7.1 Unit Sizes and Appropriate Household Sizes. The following are the household
sizes appropriate to the Unit, for calculation of Mortgage Amount based upon 1.5 persons per bedroom
and consistent with the City of Chula Vista Policy for the Development of Affordable For Sale Housing
for Low Income Buyers:
Unit Size
Household Size
Two Bedroom
Three Bedroom
Four Bedroom
Three Persons
Four and a half Persons
Six Persons
4.8 Proof of Qualification. Developer will obtain from each person(s) to whom Developer
sells a Low Income Unit a "Supplemental Buyer Application" (the "Application") in the fonD of
Exhibit "D" attached hereto (or such other fonD as City may from time to time adopt and of which City
will notify Developer in writing). Developer shall use commercially reasonable efforts to verify
infonnation contained in the Application and the supporting documents thereto in detennining the
eligibility of such person(s) to buy such Low Income Unit. Developer will retain the Application and
supporting documents for a period of at least seven (7) years after the Buyer thereof closes escrow for
purchase of the unit.
4.9 Records. Audits. Developer will submit to the City monthly copies of all Supplemental
Buyer Applications and documents submitted containing infonnation with respect to each Low Income
Unit including (i) the monthly mortgage rate; (ii) the number of occupants for which the Low Income
Unit is sold; (iii) the income of such occupant(s); (iv) the Market Rate Price; and (v) the Low Income
Affordable Sales Price of the Low Income Unit. Such submission shall be in the form of Exhibit "D"
attached hereto (or sucli other form as City may from time to time adopt and of which City notifies
Developer in writing). If City reasonably believes that violations of the sales price, occupancy and/or
income requirements of this Agreement have occurred, and that an audit is necessary to verify submitted
Supplemental Buyer Applications and documentation, it will so notify Developer in writing thereof.
Within ten (10) days after delivery of said notice, Developer will deliver to City the names of three
certified public accountants doing business in the metropolitan San Diego area. City will promptly
deliver to Developer the formers approval of one or more of said names. The audit will be completed by
an approved certified public accountant, at Developer's cost, within 60 days after the delivery to
Developer of City's said approval. The certified public accountant will promptly deliver a copy of the
written audit to City. Developer shall regularly evaluate its compliance with the sales price, occupancy
and income requirement of this Agreement and exercise good faith efforts to avoid any violations thereof.
She. HomcslRoliing Hills Ranch
Affordable Housing Agreement
2442644/-!9éJ..I..+H~
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4.10 City ADDroval of Marketing Plan: Selection of Low Income Unit Buvers. The following
requirements shall apply with respect to Developers marketing of the Low Income Units:
4.10.1 Marketing Plan. Developer shall prepare a marketing plan in compliance with
Federal and State Fair Housing Laws and City shall review the marketing plan for compliance with City
requirements. Such marketing plan shall include a plan for publicizing the availability of the Units within
the City, such as notices in any City sponsored newsletter, newspaper advertising in local newspapers and
notices in City offices. The marketing plan shall require Developer to obtain from the City the names of
Low Income households who have been displaced by the City Redevelopment Agency redevelopment
projects, and to notify persons on such list of the availability of Units in the Project prior to undertaking
other fOnDS of marketing. The marketing plan shall provide that the persons on such list of displaced
persons be given not fewer than fifteen (15) days after receipt of such notice to respond by completing
application fonDS for purchase of Low Income Units, as applicable.
4.10.2 Income Requirements. All buyers of each Low Income Unit shall meet the
income requirements set forth in this Agreement. Selection of Low Income Buyers shall be made based
upon the Buyer Selection Criteria as established by the City's Policy for the Development of Affordable
For Sale Housing for Low Income Buyers within the following levels of priority. A point system has
been established so that applicants with a higher number of points will receive preference for units.
5 Doints Households which are displaced ITom their primary residence as a result of any
of the following: (i) expiration of affordable housing covenants applicable to such
residence; (ii) an action of City or the City's Redevelopment Agency; (iii) closure of a
mobile home or trailer park community in which the household's residence was located;
or (iv) a condominium conversion involving the household's residence. One member in
the household must have resided in such housing as the primary place of residence for at
least one year prior to such action or event.
3 Doints Households with at least one member who has worked within the City, as that
person's principal place of full-time employment, for at least one year prior to the date of
application for such housing.
2 Doints Households with at least one member who is a Public Safety employee (fIre and
police) or Credentialed Teacher.
1 Doint All other applicants who do not meet any of the above criteria.
In the situation where there are applicants with an equal number of points but not enough Low Income
Units are available, a lottery will be held at a place and time to be announced by the City and Developer.
4.11 City's Evaluation of Qualification of Low Income Buvers: Authority of City To Receive
Loan AD{Jlications. Developer shall reasonably assist the City in obtaining ITom each Low Income Buyer
(or prospective Low Income Buyer) a fonD signed by the Low Income Buyer authorizing the release to
the City of the prospective Buyer's 1003 (Mortgage Loan Application), Good Faith Estimate and
Underwriting Transmittal Summary (1008) or similar fonD from the applicable lender. The City shall
have the right to require each such lender to forward to the City the loan documentation for any loan to a
Low Income Buyer. The City will evaluate these fonDS and communicate its evaluation to Developer.
After the City's review and verification that a prospective buyer is qualified as a Low Income Buyer, the
City will send an Approval Notice to the lender and the Developer conflnDing the prospective Buyer's
eligibility.
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4.12 Oualification Criteria. The City will utilize the following criteria in evaluating an
application by a Low Income Buyer (or prospective Low Income Buyer):
4.12.1 Neither the Low Income Buyer nor such Low Income Buyer's spouse has owned
a home during the three (3) year period immediately preceding the purchase of the Low Income Unit.
4.12.2 The Low Income Buyer's down payment must not be less than three percent (3%)
of the Affordable Purchase Price.
4.12.3 The Low Income Buyer's liquid assets after down payment and the Low Income
Buyer's closing costs must not exceed $25,000.00.
4.12.4 Non-occupant co-borrowers are not allowed.
4.12.5 The maximum Monthly Housing Costs must not exceed 36% of monthly income
for FHA insured loans and 40% of monthly income for all other loans.
4.12.6 The maximum debt-to-income ratios must not exceed 41% for FHA loans and
45% for all other loans.
4.12.7 No cash out or debt consolidation financing will be allowed. Rate and term
refinancing will be allowed.
4.13 Information Packet. The Developer shall provide an informational packet to each Low
Income Buyer, summarizing the requirements of the City's Low Income for sale housing program
provided for in this Agreement. The City shall, at Developer's request, reasonably assist Developer with
the preparation or review of the informational packet.
4.14 Insurance. The City shall have the right to require the following of each Low Income
Buyer. Within ten (10) days after a Low Income Buyer's acquisition of a Low Income Unit, such Low
Income Buyer shall furnish to the City duplicate originals or appropriate certificates of insurance
coverage evidencing that such Low Income Buyer has obtained, or cause to be obtained, the insurance
coverage with respect to the Low Income Unit that is required under the terms and conditions of the Silent
Second Trust Deed.
ARTICLE 5- Term
The Term of this Agreement commences on the date of this Agreement. The Term ends on the
date the close of escrow occurs for the sale by Developer of the last Low Income Unit pursuant to the
requirements of this Agreement. Immediately following the close of escrow of the last Low Income Unit
pursuant hereto, the City shall record a termination of this Agreement in the Office of the County
Recorder of San Diego County, California.
Each Low Income Unit shall automatically be released from the encumbrance of this Agreement
at the close of the Low Income Buyer's escrow for the Low Income Unit for the purchase of the Low
Income Unit from Developer. Any portion of the Real Property that is conveyed by Developer to the
condominium homeowner's association established for the Real Property shall be automatically released
from the encumbrance of this Agreement upon such conveyance.
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ARTICLE 6- Subordination
Upon request, the City shall subordinate this Agreement to any flTst deed of trust which
Developer obtains for construction of the Project and the First Trust Deed Loans obtained by Low Income
Buyers to purchase their Low Income Units. However, any subordination agreement entered into by the
City shall contain written commitments which the City finds are reasonably designed to protect the City's
interests in the event of default, such as any of the following; (a) a right of the City to cure a default on
the loan prior to foreclosure, (b) a right of the City to negotiate with the lender after notice of default from
the lender and prior to foreclosure, (c) an agreement that if prior to foreclosure of the loan, the City takes
title to the property and cures the default on the loan, the lender will not exercise any right it may have to
accelerate the loan by reason of the transfer of title to the City, and (d) a right of the City to acquire
through foreclosure under the Silent Second Trust Deed the Low Income Unit from the buyer at any time
after a material default on the loan..
ARTICLE 7- Additional Provisions Re!!ardin!! The Real Property
7.1 Condition of the Real Property. The following provisions shall apply only during the
period of time that Developer is developing and marketing the Project.
7.1.1 Developer shall take all necessary precautions to prevent the release, by
Developer or its contracts, into the environment of any Hazardous Materials which may be located in, on
or under the Real Property. Such precautions shall include compliance with all Governmental
Requirements with respect to Hazardous Materials. In addition, Developer shall install and utilize such
equipment and implement and adhere to such procedures as are consistent with commercially reasonable
standards as respects the disclosure, storage, use, removal and disposal of Hazardous Materials.
7.1.2 Developer shall indemnify, defend and hold City hanDless from and against any
claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or
expense (including, without limitation, reasonable attorneys' fees), resulting from, arising out of, or based
upon Developer's or its contractor's (i) the release, use, generation, discharge, storage or disposal of any
Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or
from, the Real Property, no matter when such claim, action, suit or proceeding is flTst asserted or begun
and no matter how the Hazardous Materials came to be released, used, generated, discharged, stored or
disposed of on, under, in or about, to or from the Real Property, or by whom or how they are discovered,
or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, pennit,
judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation
of Hazardous Materials on, under, in or about, to or from, the Real Property. This indemnity shall
include, without limitation, any damage, liability, fine, penalty, parallel indemnity after closing, cost or
expense arising from or out of any claim, action, suit or proceeding, including injunctive, mandamus,
equity or action at law, for personal injury (including sickness, disease or death), tangible or intangible
property damage, compensation for lost wages, business income, profits or other economic loss, damage
to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse
effect on the environment. This indemnity shall survive the tennination of this Agreement.
7.1.3 For purposes of this Agreement, "Hazardous Materials" means any substance,
material, or waste which is or becomes regulated by any local governmental authority, San Diego County,
the State of California, regional governmental authority, or the United States Government, including, but
not limited to, any material or substance which is (i) derIDed as a "hazardous waste," "extremely
hazardous waste," or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed
pursuant to Section 25130 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous
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Waste Control Law», (ii) derIDed as a "hazardous substance" under Section 25316 of the California
Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance
Account Act), (Hi) derIDed as a "hazardous material," "hazardous substance," or "hazardous waste" under
Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials
Release Response Plans and Inventory), (iv) derIDed as a "hazardous substance" under Section 25281 of
the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous
Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated byphenyls, (viii) methyl tertiary
butyl ether, (ix) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to
Article II of Title 22 of the California Code of Regulations, Division 4, Chapter 20, (x) designated as
"hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. Section 1317), (xi)
derIDed as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act,
42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903) or (xii) derIDed as "hazardous substances"
pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, and Liability
Act, 42 U.S.C. Section 9601, et seq.
7.1.4 For purposes of this Agreement, "Governmental Requirements" means all laws,
ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State, the
County of San Diego, the City, or any other political subdivision in which the Property is located, and of
any other political subdivision or instrumentality exercising jurisdiction over the City, the Borrower or the
Property.
7.1.5 Taxes. Assessments. Encumbrances. and Liens. Developer shall pay prior to
delinquency all real estate taxes and assessments properly assessed and levied on portions of the Real
Property which are owned by Developer.
Nothing herein contained shall be deemed to prohibit Developer from contesting the validity or
amounts of any tax, assessment, encumbrance, or lien, nor to limit the remedies available to Developer in
respect thereto.
7.2 Hold Harmless. Developer agrees to indemnify, protect, defend and hold harmless City,
and their officers, agents, employees, representatives and successors, from and against any and all claims,
damages, actions, costs, demands, expenses or liability, including without limitation, reasonable attorneys'
fees and court costs, which may arise from the direct or indirect actions or inactions of the Developer or
those of its contractors, subcontractors, agents, employees or other persons acting on Developers' behalf
which relate to Developer's construction and marketing activities of the Real Property or Project. This
hold harmless agreement applies, without limitation, to all damages and claims for damages suffered or
alleged to have been suffered by reasons of the operations referred to in this Section 7.2, regardless of
whether or not the City prepared, supplied or approved plans or specifications, or both, for the Property or
Project. Notwithstanding anything to the contrary contained herein, this Indemnity shall not apply to any
claims, damages, actions, costs, demands, expenses or liability which arises out of either: (a) the
exclusive marketing requirements contained in Section 4.12.1, or (b) the use of the point system
contained in Section 4.12.2. This indemnity by Developer, and all other indemnities set forth herein,
shall survive any foreclosure of the real property by the City pursuant to the terms of the Silent Second
Trust Deed and the Term or earlier termination of this Agreement.
7.3 OblilZation to Refrain from Discrimination. There shall be no discrimination against, or
segregation of, any persons, or group of persons, on account of race, color, creed, religion, sex, marital
status, ancestry, or national origin in the enjoyment of the Real Property. Developer shall further comply
with all the requirements of the Americans with Disabilities Act and Americans with Disabilities Act
Accessibility Guidelines (collectively, the "ADA").
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7.4 Fonn of Nondiscrimination and Nonsegre!!ation Clauses. Developer shall retrain ftom
restricting the sale of any portion of the Real Property, or contracts relating to the Real Property, on the
basis of race, color, creed, religion, sex, marital status, ancestry, or national origin of any person and shall
comply with all the requirements for the ADA. All such deeds, leases or contracts, shall contain or be
subject to substantially the following nondiscrimination or nonsegregation clauses:
7.4.1 In deeds: "The grantee herein covenants by and for himself or herself, his or her
heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there
shall be no discrimination against or segregation of any person or group of persons on account of race,
color, creed, religion, sex, marital status, ancestry, or national origin in the sale, lease, sublease, transfer,
use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself, or any
persons claiming under or through him, establish or pennit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use, or occupancy of
tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed and further covenants that
all such individuals and entities shall comply with all requirements of the Americans with Disabilities Act
of 1990, as the same may be amended from time to time (42 U.S.C. Section 12101, et seq.) and the
Americans with Disabilities Act Accessibility Guidelines. The foregoing covenants shall run with the
land."
7.4.2 In leases: "The lessee herein covenants by and for himself or herself, his or her
heirs, executors, administrators, and assigns, and all persons claiming under or through him, and this lease
is made and accepted upon and subject to the following conditions: 'That there shall be no discrimination
against or segregation of any person or group of persons on account of race, color, creed, religion, sex,
marital status, ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure,
or enjoyment of the land herein leased, nor shall the lessee himself, or any person claiming under or
through him, establish or pennit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy of tenants, lessees, sub lessees, subtenants,
or vendees in the land herein lease and the lease shall be carried out in compliance with all requirements
of the Americans with Disabilities Act of 1990, as the same may be amended ftom time to time (42
U.S.C. Section 12101, et seq.) and the Americans with Disabilities Act Accessibility Guidelines.'
7.4.3 In contracts: "There shall be no discrimination against or segregation of any
persons or group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or
national origin in the sale, lease, transfer, use, occupancy, tenure, or enjoyment of land, nor shall the
transferee himself, or any person claiming under or through him, establish or pennit any such practice or
practices of discrimination or segregation with reference to the selection, location, number, use, or
occupancy of tenants, lessees, subtenants, sublessees, or vendees of land and all such activities shall be
conducted in compliance with all the requirements of the Americans with Disabilities Act of 1990, as the
same may be amended ftom time to time (42 U.S.C. Section 12101, et seq.) and the Americans with
Disabilities Act Accessibility Guidelines."
ARTICLE 8- Escrow Documentation
The City shall provide Developer with a revision it reasonably deems appropriate to the fonD
Silent Second Note or the Silent Second Trust Deed for the use in escrow for the sale of each Low Income
Unit. The Silent Second Trust Deed shall be recorded with the County Recorder of San Diego County at
close of escrow for the sale by Developer of each Low Income Unit and each Silent Second Trust Deed
shall legally describe the particular Low Income Unit it covers, using the same legal description as is used
in Developer's deed to its buyer. Each Silent Second Trust Deed shall be consistent with and implement
the tenus of this Agreement and Council Resolution 2001-258.
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ARTICLE 9- Breach
9.1 Breach bv City. If City breaches any of its covenants contained in this Agreement,
Developer will have available to it all legal and equitable remedies afforded by the laws of the State of
California.
9.2 Breach bv Developer of Sale Price Limit Reauirements. If, with respect to any Low
Income Unit, Developer breaches this Agreement by charging higher sales prices than that herein
permitted, Developer will, immediately upon City's demand, (i) reduce the sales price to that permitted
herein and (ii) refund to any buyers who theretofore paid such higher sales price the amount of the excess,
together with interest hereon at the rate of ten percent (10%) per annum, computed from the date(s) of
payment of the excess by said buyers to the date of said refund. The provisions of this Section 9.2
constitute a third-party beneficiary contract in favor of such buyers. Further, City is hereby granted the
power (but not the duty) to act as attorney-in-fact of such buyers in enforcing this Section 9.2.
9.3 Breach bv Developer of Sales Reauirements. If, with respect to any Low Income Unit,
Developer breaches this Agreement by selling to buyers who are not qualified by the City pursuant to
Section 4.13, Developer will, immediately upon City's written demand, and at Developer's sole cost, use
its reasonable best and lawful efforts to terminate such sale and/or to re-designate one of the Market Rate
Units as a Low Income Unit.
9.4 Breach bv Developer of Other Reauirements. If the Developer breaches any of its
covenants contained in this Agreement, the City shall have available to it all legal and equitable remedies
afforded by the laws of the State of California.
9.5 Remedies Not Exclusive. The remedies set forth in this Article 9 are not exclusive, but
are in addition to all legal or equitable remedies otherwise available to City and Developer.
ARTICLE 10- - Conflicts of Law
10.1 Conflict of City and State or Federal Laws. In the event that state or federal laws or
regulations enacted after this Agreement has been entered into prevent or preclude compliance with one
or more provisions of this Agreement, or require changes in plans, maps or permits approved by the City,
the parties will:
10.1.1 Notice and Copies: Provide the other party with written notice of such state or
federal restriction, provide a copy of such regulation or policy and statement of conflict with the
provisions of this Agreement.
10.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in
good faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or
regulation.
10.2 City Council Hearings. Thereafter, regardless of whether the parties reach an agreement
on the effect of such federal or state law or regulation upon this Agreement, the matter will be scheduled
for consideration by the governing board of the City Council. The City Council, at such meeting, will
determine the exact modification or suspension which shall be necessitated by such federal or state law or
regulation. Developer, at the meeting, will have the right to offer oral and written testimony. Any
modification or suspension will be taken by the affIrmative vote of not less than a majority of the
authorized voting members of the governing board of the City Council.
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10.3 Cooperation in Securing Pennits. The City shall cooperate with the Developer in the
securing of any pennits which may be required as a result of such modifications or suspensions.
ARTICLE 11- General Provisions
11.1 Severability. The parties hereto agree that the provisions are severable. If any provision
of this Agreement is held invalid, the remainder of this Agreement will be effective and will remain in
full force and effect unless amended or modified by mutual consent of the parties.
11.2 Entire Agreement. Waivers and Amendments. This Agreement, together with any other
written document referred to or contemplated herein, embody the entire Agreement and understanding
between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof
may be amended, modified, waived, or discharged except by an instrument in writing executed by the
party against which enforcement or such amendment, waiver, or discharge is sought.
11.3 Capacities of Parties. Each signatory and party hereto hereby warrants and represents to
the other party that it has legal authority and capacity and direction trom its principal to enter into this
Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this
Agreement.
11.4 Governing LawNenue. This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action arising under or relating to this
Agreement shall be brought only in the Federal or State courts located in San Diego County, State of
California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this
Agreement, and perfonnance hereunder, shall be the City ofChula Vista.
11.5 Assignment. Subject to the City's prior review and approval, which review and approval
shall not be unreasonably withheld, delayed or conditioned, the rights and obligations of Developer under
this Agreement may be transferred or assigned and Developer may be released trom such obligations
upon such transfer or assignment, provided such transfer or assignment is made as a part of the
conveyance of the fee of all or a portion of the Real Property, and the City. Any such transfer or
assignment will be subject to the provisions of this Agreement. During the tenn of this Agreement, any
such assignee or transferee will observe and perfonn all of the duties and obligations of Developer
contained in this Agreement as such duties and obligations pertain to the portion of the Real Property so
conveyed.
11.6 Amendment or Cancellation of Allreement. This Agreement may be amended trom time-
to-time or cancelled by the mutual consent of the parties hereto but only in the same manner as its
adoption. The tenn "this Agreement" includes any such amendment properly approved and executed.
11.7 Enforcement. Unless amended or cancelled as provided in Section 11.6, this Agreement
is enforceable by any party to it. Any change in the applicable general or specific plans, zoning,
subdivision or building regulations adopted by City which alter or amend the rules, regulations or policies
governing pennitted uses of the land, density and design are enforceable.
11.8 Binding Effect of Allreement. The burdens of this Agreement bind and the benefits of
the Agreement inure to the parties' successors or assignees in interest.
11.9 Relationship of Parties. It is understood that the contractual relationship between City
and Developer is such that Developer is an independent contractor and not an agent of City.
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11.10 Notices. All notices, demands or requests provided for or permitted to be given pursuant
to this Agreement must be in writing. All notices, demands or requests to be sent to any party shall be
deemed to have been properly given or served if personally served or deposited in the United States mail,
addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the
addresses identified herein as the places of business for each of the designated parties.
Çill::
City ofChula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Community Development Department
E-mail:
With a copv to:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Office of the City Attorney
E-mail:
Developer:
Shea Homes
10721 Treena Street, Suite 100
San Diego, CA 92131
Attn: Mr. Ryan Martin
E-mail: rvan.martin@sheahomes.com
With a copv to:
Luce, Forward, Hamilton & Scripps LLP
600 West Broadway, 26th Floor
San Diego, CA 92101
Attn: Melissa M. Trunnell, Esq.
E-mail: mtrunnell@luce.com
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JUN-09-2004 WED 04: 08 PM FROM: SHEA HOMES ACQ&COMM DEV
FAX: 8586355436
PAGE 2
A party may change its address by gíving notice in writing to the other party. Thereafter, notices,
demands and requests shall be addressed and tra.nsmitted to the new address.
IN WITNESS WHEREOF the parties hereto have caused this agreement to be executed as of
the day a.nd year first written above,
"CITY"
CITY OF CHULA VISTA, a municipal
corporation of the State of California
By:
Stephen Padilla. Its Mayor
A TIEST:
Susan Bigelow, City Clerk
APPROVED AS TO FORM:
Ann More, City Attorney
"DEVELOPER"
SHEA HOMES LIMITED PARTNERSHIP, a.
California limited partnership
By J,F, Shell. Co., Inc, a Nevada Corporation,
Its Genera! Partner J' ..-
By:
Its:
By:
Its:
14
Snea HomoslRoJlin¡ HUb Ranc!l
Affordabl, HouaÙ1g Agroomont
24426-44/1~61172.4
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6IO~1O4
JUN-09-2004 WED 04: 08 PM FROM: SHEA HOMES ACQ&COMM DEV
FAX: 8586355436
PAGE 3
State of California )
) S.S.
County of San Diego )
On June 9, 2004 before me, Debra E. Young, Notary Public, personally appeared
Ryan Martin and J obn B. Vance personally known to me to be the persons whose ,
names 8l"C subscribed to the witlrin instrument and acknowledged to me that they executed.
the same in their authorized capacities, and that by their signatures on the instrument the persons,
or the entity upon behalf of which the persons acted, executed the instrument. '
WITNESS my hand and official seal,
[iÞ DEBRA E, YOUNG' (
Comm,1I333S71
If) ~OTARY PU~L C'CALIFORN A (J
Sin 0"10 Coun1y ..
My Comm, "",.. OIC,S, 1005
~¿;N
/ () -;23
EXIllBIT A
LEGAL PROPERTY DESCRIPTION
All that certain real property situated in the City of Chula Vista, County of San Diego, State of California,
described as follows:
City of Chula Vistaffrimark Pacific
Affordable Housing Agreement
24426-44/~196Ii724
[To Be Attached]
EXHIBIT "A"
1 /0-;2'/
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City of Chota VistalTrimarl< Pacific
Affordable Housiog Agrecmeot
24426-44/~~
EXHIBIT B
FORM OF SILENT SECOND NOTE
EXHIBIT "B"
1 /0-:;5
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APN:_-__-
FTHB#-
NOTICE: THIS NOTE MAY REQUIRE PAYMENT OF PRINCIPAL, INTEREST AND EQUITY SUMS
UPON THE SALE OR TRANSFER OF THE PROPERTY OR UPON A PREPAYMENT. FURTHER,
THIS NOTE IS A SHARED APPRECIATION NOTE AS DEFINED IN SECTION 1917, ET SEQ. OF THE
CALIFORNIA CIVIL CODE.
PROMISSORY NOTE SECURED BY DEED OF TRUST
$-
Amount
Date
[Property Address]
1.
Borrower's Promise to Pav. For value received, the undersigned, - ("Borrower"),
promises to pay to the City of Chula Vista ("City"), or order, the sum of -
DOLLARS ($---> with interest accruing thereon as hereinafter provided, and
payable as set forth below. It is understood that the City may transfer this Note. The City or
anyone who takes this Note by transfer and who is entitled to receive payments under this Note
will be called the "Note Holder".
2.
No Interest. This Note will bear no interest unless Borrower defaults under the terms of this Note
or the Deed of Trust securing it. In the event of default, interest from the Date of this Note shall
be calculated at:
a)
The rate equal to the interest rate of the senior trust deed or, in the event of no
senior trust deed,
b)
The prevailing rate of the Prime Rate as published in the Wall Street Journal, on
the date of default.
3.
Pavments and Term. The sums evidenced by this Note, including all principal, interest (if any)
and the share of the Equity due and payable to the Note Holder shall become due and payable at
such time as Borrower sells, rents, refinances, transfers or changes the title to the property (the
"Property") which is encumbered by the second deed of trust ("Deed of Trust") which secures this
Note. "Equity" and the portion payable to the Note Holder are defined and described in the Deed
of Trust. As described in the Deed of Trust, the sale, rental, refinance, conveyance, transfer or
change in title of the Property prior to the forty-fifth (45th) anniversary date of the Deed of Trust
will result in the Note Holder's share of the Equity to be payable to the Note Holder. Principal
shall also become due and payable upon the forty-fifth (45th) anniversary date of the Deed of
Trust. No delay or omission on the part of the City shall operate as a waiver of such right of
repayment or of any other right of this Note. The principal amount of this Note, together with
interest (if any) accruing thereon from the date hereof as set forth in Section 3 and the Equity,
shall be due and payable on or before the date provided by the City in the Notice of Acceleration,
which shall not be less than ninety (90) days, if all or any part of the Property or any interest in it
is sold, rented, refinanced, conveyed, or transferred or if a beneficial interest in Borrower is sold,
rented, refinanced, conveyed, or transferred (each of which is called a "Transfer") without the
prior written consent of the City. The City shall not exercise this right of acceleration if prohibited
by federal law or if the Note Hoider has executed a separate written waiver of its right to do so.
The following shall not constitute a Transfer:
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Promissory Note
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a)
A transfer of the Property from a deceased Borrower to the surviving spouse of
Borrower if the surviving spouse is also named as a Borrower,
b)
A transfer of the Property by Borrower to his/her spouse pursuant to which the
spouse becomes a co-owner of the Property;
c)
A transfer of the Property resulting from a decree of dissolution of the marriage or
legal separation or from a property settlement agreement incidental to such a
decree which requires Borrower to continue to make payments on the Note and
by which a spouse who is already a Borrower becomes the sale owner of the
Property;
d)
A transfer of the Property by Borrower to an inter-vivos trust In which Borrower is
the sole beneficiary;
e)
A refinancing to which the beneficiary under the Deed of Trust is obligated to
subordinate the Deed of Trust.
A refinancing which does not result in cash excess paid to Borrower or which is
used for debt consolidation, equity line of credit or similar purposes.
All payments made under this Note shall be paid in lawful money of the United States to the City
of Chula Vista at 276 Fourth Avenue, Chula Vista, CA 91910, Attention: Community Development
Department, Housing Division.
f)
Prepavment. Borrower has the right to prepay the principal without incurring any penalty, apart
from any interest that may be due under default provisions above. In the event that Borrower
chooses to prepay the Note, Borrower must notify Note Holder in writing. Upon any such
prepayment, the City's share of the Equity shall become immediately due and payable to the Note
Holder
4.
No Interest If No Default: No EQuity SharinQ If After 45 Years If No Default. Provided that
Borrower is not in default under the terms of this Note or Loan Documents, no interest shall
accrue under the Note. The City shall not share any Equity unless the principal balance of this
Note becomes accelerated prior to expiration of the FORTY-FIFTH (45th) year after the date of
the execution of the Note. Nothing contained in this Section 5 shall be construed as a promise by
the City to forgive or relinquish the right to seek repayment of the principal of this Note.
5.
Default Under Deed of Trust. Notwithstanding any other provisions of the Note, if default occurs
in any of the covenants or agreements contained in the Deed of Trust securing this Note, this
Note, including all unpaid principal, interest and Equity sharing, shall immediately become due
and payable in full at the option of the City. In the event the City exercises such option, the
amounts due and payable shall be the principal balance remaining on the Note and other
amounts owing, together with accrued but unpaid interest as described above.
6.
7.
Attornevs' Fees. Should suit be commenced to collect on this Note, or any portion thereof, such
sum as the court may deem reasonable shall be added hereto as attorneys' fees.
8.
Time. Time is of the essence herein.
9.
Amendments. This Note may not be modified or amended except by an instrument in writing
expressing such intention and signed by an authorized representative of the City and Borrower.
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10.
Severability. If any term or provision hereof is illegal or invalid for any reason whatsoever, such
illegality or invalidity shall not affect the validity and binding effect of the remainder of this Note
upon the parties.
11.
Borrower's Waivers. Borrower waives any rights to require the City to perform certain acts.
Those acts are:
a)
To demand payment of amounts due (known as "presentmenf').
b)
To give notice that amounts due have not been paid (known as "notice of
dishonor").
c)
To obtain an official certification of non-payment (known as "protest").
12.
Givina of Notices. Any notice that must be given to Borrower under this Note will be given by
delivering it or by mailing it first class mail or by certified mail, return receipt requested, addressed
to Borrower at the address set forth above. A notice that must be given to the City under this
Note will be given by mailing it certified mail, return receipt request, to the City at the address
stated in Section 3 above. Any party may change its address by a notice given to the other party
in the manner set forth in this Section.
13.
Joint and Several Responsibility. If more than one person executes this Note, each is fully and
personally obligated to pay the full amount owed and to keep all promises in this Note.
NOTICE TO BORROWER
Do not sign this Note if it contains blank spaces.
All spaces should be completed before you sign.
Date:
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Promissory Note
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City of Chula Vistafrrimark Pacific
Affordable Housiog Agreement
24426-44/~19611724
EXHIBIT C
FORM OF SILENT SECOND TRUST DEED
EXHIBIT "c"
1
/0 -d- <1
6111822104
WHEN RECORDED PLEASE MAIL TO:
City of Chula Vista
Community Development Department
Housing Division
276 Fourth Avenue
Chula Vista, CA 91910
THIS SPACE FOR RECORDER'S USE ONLY
Apn: 000-000-00-00
FTHB #0000
NOTICE:
THIS DEED OF TRUST SECURES A SHARED APPRECIATION LOAN
WITHIN THE MEANING OF CIVIL CODE SECTION 1917, ET SEQ.
DEED OF TRUST
(SHARED APPRECIATION)
THIS DEED OF TRUST, is made this - day of
, 200_, among the Trustor(s) ,
(herein "Borrower"), and the City of Chula Vista (herein "Beneficiary':) a public body,
corporate and politic, whose address is 276 Fourth Avenue, Chula Vista, CA 91,910.
This Deed of Trust is second and subsequent in lien to a First Deed of Trust recording concurrentiy
herewith in favor of the first lien holder,
a in the amount of
and 00/100 Dollars (herein "First Trust Deed");
BORROWER, in consideration of the indebtedness herein recited and the trust herein created,
irrevocably grants and conveys to (herein "Trustee"),
in trust, with power of sale, the following described property located in the City of Chula Vista, County of
San Diego, State of California [which has the address of property address here (herein "Property
Address")]:
SEE EXHIBIT "An ATTACHED HERETO FOR LEGAL DESCRIPTION
TOGETHER with all the improvements now and hereafter erected on the Property, and all easements,
rights, appurtenances and rents (subject however to the rights and authorities given herein to Beneficiary
to collect and apply such rents), all of which shall be deemed to be and remain part of the property
covered by this Deed of Trust; and all of the foregoing, together with said property (or the leasehold
estate if this Deed of Trust is on a leasehold) are hereinafter referred to as the "Property";
TO SECURE to Beneficiary the repayment of the indebtedness evidenced by Borrower's promissory note,
dated , 200- and extensions and renewals thereof (herein "Note"), in the principal
sum 9f and 00/10 Dollars ($ ), with default interest thereon, if any,
and the Equity portion payable to Beneficiary as provided hereinafter, if not sooner paid, which shall
become immediately due and payable if all or any part of the Property or any interest in it is sold, rented,
refinanced, conveyed or transferred (or if a beneficial interest in Borrower is sold, rented, refinanced,
conveyed or transferred and Borrower is not a natural person), (each of which is called a "Transfer")
without the prior written consent of Beneficiary; the payment of all other sums, with default interest
thereon, if any, advanced in accordance herewith to protect the security of this Deed of Trust; and the
performance of the covenants and agreements of Borrower herein contained.
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Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to
grant and convey the Property, and that Borrower's subject property is unencumbered except for
encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the title
to the Property against all claims and demands, subject to encumbrances of record.
UNIFORM COVENANTS
Borrower and Beneficiary covenant and agree as follows:
1.
Payment of PrinciDal and Default Interest. Borrower shall promptly pay when due the principal
indebtedness and accrued default interest, if any, evidenced by the Note and the portion of the
Equity payable by Borrower as provided in Paragraph 15 of this Deed of Trust.
If payment of the indebtedness is required due to a sale of the Property where the purchase price
is equal to or less than the acquisition cost of the Property, assuming an open and competitive
sale, then repayment shall be made in the following order and amount:
(a)
(b)
Outstanding principal and interest balance of the primary lender's loan;
Borrower's initial down-payment investment and normal cost of sale;
(c)
Accrued default interest, if any, on the principal amount of Beneficiary's loan at
the interest rate contained in the Note;
(d)
(e)
The principal amount of Beneficiary's loan; and
Any remainder to Borrower.
Borrower has the right to prepay the principal secured by this Deed of Trust without incurring any
penalty, apart from any interest that may be due under default provisions contained in the Note.
In the event that Borrower chooses to prepay the Note, Borrower must notify Beneficiary in
writing. Upon any such prepayment, Beneficiary's share of the Equity shall become immediately
due and payable to the Beneficiary.
2.
Funds for Taxes and Insurance. To protect the security of this Deed of Trust, Borrower agrees
to pay, at least ten (10) days before delinquency, all taxes and assessments affecting said
property; when due, all encumbrances, charges and liens, with interest, on said property or any
part thereof, which appear to be prior or superior hereto; and all costs, fees and expenses of this
Deed of Trust.
Should Borrower fail to make any payment or to do any act as herein provided, then Beneficiary,
without obligation to do so and without notice to or demand upon Borrower and without releasing
Borrower from any obligation hereof, may make or do the same in such manner and to such
extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being
authorized to enter upon said property for such purposes; appear in and defend any action or
proceeding purporting to affect the security hereof or the rights powers of Beneficiary or Trustee;
pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of
either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary
expenses, employ counsel and pay his/her reasonable fees.
3.
ADDlication of Pavments. Unless applicable law provides otherwise, all payments received by
Beneficiary under section 1 and 2 shall be applied; first, to any prepayment charges due under
the Note; second, to amounts payable under section 2; third, to accrued default interest, if any,
due; fourth, to principal due; and last, to any late charges due under the Note.
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4.
Prior MortQaQes and Deeds of Trust: CharQes: Liens. Borrower shall perform all of
Borrower's obligations under any mortgage, deed of trust or other security agreement with a lien
which has priority over this Deed of Trust, including Borrower's covenants to make payments
when due. Borrower shall payor cause to be paid all taxes, assessments and other charges,
fines and impositions attributable to the Property which may attain a priority over this Deed of
Trust, and leasehold payments or ground rents, if any.
5.
Hazard Insurance. Borrower shall keep the improvement(s) now existing or hereinafter erected
on the Property insured against loss by fire, hazards included within the term "extended
coverage", and such other hazards as Beneficiary may require and in such amounts and for such
periods as Beneficiary may require.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by
Beneficiary; provided, that such approval will not be unreasonably withheld. All insurance policies
and renewals thereof shall be in a form acceptable to Beneficiary and shall include a standard
mortgage clause in favor of and in a form acceptable to Beneficiary. Beneficiary has the right to
hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or
other security agreement with a lien which has priority over this Deed of Trust.
In the event of Joss, Borrower shall give prompt notice to the insurance carrier and Beneficiary.
Beneficiary may make proof of ioss if not made promptly by Borrower.
If the Property is abandoned by Borrower, or if Borrower fails to respond to Beneficiary within 30
days from the date notice is mailed by Beneficiary to Borrower that the insurance carrier offers to
settle a claim for insurance benefits, Beneficiary is authorized to collect and apply the insurance
proceeds at Beneficiary's option either to restoration or repair of the Property or to the sums
secured by this Deed of Trust.
6.
Preservation and Maintenance of ProDertv. Condominium, CooDeratives. Planned Unit
DeveloDments. Borrower will keep the Property in good repair and shall not commit waste or
permit impairment or deterioration of the Property and shall maintain property including the
principle house, garage, and out buildings as well as lawn maintenance, and shall comply with
the provisions of any lease if this Deed of Trust is on a leasehoid. If this Deed of Trust is on a
unit in a condominium or a planned unit development (herein "PUD"), Borrower shall perform all
of Borrower's obligations under the declaration or covenants, conditions and restrictions, creating
or governing the condominium, PUD, the by-laws and regulations of the condominium or PUD,
and constituent documents.
7.
Protection of Beneficiary Securitv. If Borrower fails to perform the covenants and agreements
contained in this Deed of Trust, or if any action or proceeding is commenced which materially
affects Beneficiary's interest in the Property, then Beneficiary, at Beneficiary's option, upon notice
to Borrower, may make such appearances, disburse such sums including reasonable attorneys'
fees, and take such action as is necessary to protect Beneficiary's interest. If Beneficiary
required mortgage insurance as a condition of making the loan secured by this Deed of Trust,
Borrower shall pay the premiums required to maintain such insurance in effect until such time as
the requirement for such insurance terminates in accordance with Borrower's and Beneficiary's
written agreement or applicable law.
Any amounts disbursed by Beneficiary pursuant to this Paragraph, with interest thereon, at the
original Note rate, will become additional indebtedness of Borrower secured by this Deed of
Trust. Unless Borrower and Beneficiary agree to other terms of payment, such amounts will be
payable upon notice from Beneficiary to Borrower requesting payment thereof. Nothing
contained in this Paragraph will require Beneficiary to incur any expense or take any action
hereunder.
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8.
g.
Inspection. Beneficiary may make or cause to be made reasonable entries upon and
inspections of the Property, provided that Beneficiary will give Borrower notice prior to any such
inspection specifying reasonable cause therefor related to Beneficiary's interest in the Property.
Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
connection with any condemnation or other taking the Property, or part thereof, or for conveyance
in lieu of condemnation, are hereby assigned and shall be paid to Beneficiary subject to the terms
of any mortgage, deed of trust or other security agreement with a lien which has priority over this
Deed of Trust.
10.
Borrower Not Released: Forbearance bv Beneficiary Not a Waiver. Extension of the time for
payment or modification of payment of the sums secured by this Deed of Trust granted by
Beneficiary to any successor in interest of Borrower shall not operate to release, in any manner,
the liability of the original Borrower and Borrower's successors in interest. Beneficiary shall not
be required to commence proceedings against such successor or to extend time for payment or
otherwise modify payment of the sums secured by this Deed of Trust by reason of any demand
made by the original Borrower and Borrower's successors in interest. Any forbearance by
Beneficiary in exercising any right or remedy hereunder, or otherwise afforded by applicable law,
shall not be a waiver of or preclude the exercise of any such right or remedy.
11.
Successors and AssiQns Bound. Joint and Several Liabilitv: Co-siQners. The covenants
and agreements herein contained shall bind, and the rights hereunder shall inure to, the
respective successors and assigns of Beneficiary and Borrower, subject to the provisions of
Paragraph 15 hereof. All covenants and agreements of Borrower shall be joint and several. Any
Borrower who co-signs this Deed of Trust, but does not execute the Note:
(a)
(b)
(c)
Is co-signing this Deed of Trust only to grant and convey that Borrower's interest
in the Property to Trustee under the terms of this Deed of Trust,
Is not personally liable on the Note or under this Deed of Trust, and
Agrees that Beneficiary and any other Borrower hereunder may agree to extend,
modify, forbear, or make any other accommodations with regard to the terms of
this Deed of Trust or the Note, without that Borrower's consent and without
releasing that Borrower or modifying this Deed of Trust as to that Borrower's
interest in the Property.
Notice. Except for any notice required under applicable law to be given in another manner, any
notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by mailing
such notice by certified mail, addressed to Borrower at the Property address or such other
address as Borrower may designate by notice to Beneficiary as provided herein, and
12.
(a)
Any notice to Beneficiary will be given by certified mail, return receipt requested,
to Beneficiary address stated herein or to such other address as Beneficiary may
designate by notice to Borrower as provided herein.
(b)
Any Notice provided for in this Deed of Trust shall be deemed to have been given
to Borrower or Beneficiary when given in the manner designated herein.
GoverninQ Law. Severability. The state and local laws applicable to this Deed of Trust shall be
the laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit
the applicability of Federal law to this Deed of Trust. In the event that any provision or clause of
this Deed of Trust or the Note conflicts with applicable law, such conflict shall not affect other
provisions of this Deed of Trust or the Note which can be given effect without the conflicting
provision, and to this end the provisions of this Deed of Trust and the Note are declared to be
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Deed of Trus!
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severable. As used herein, "costs", "expenses" and "attorneys' fees" include all sums to the
extent not prohibited by applicable law or limited herein.
14.
Borrower's Copv. Borrower shall be furnished a conformed copy of the Note and this Deed of
Trust at the time of execution or after recordation hereof.
15.
Transfer of the Property or a Beneficial Interest in Borrower. In the event of a Transfer or the
prepayment of the entire Note balance, the "Equity", as hereafter defined, in the Property shall be
shared between Borrower and Beneficiary on the following basis:
Occupancy Period (years)
Before 1
1-5
6-10
11-15
16-20
21-25
26-30
31-35
36-45
After 45
Beneficiary Equity Share
100%
70%
60%
50%
40%
30%
20%
10%
5%
0%
Borrower Equity Share
0%
30%
40%
50%
60%
70%
80%
90%
95%
100%
If, for example, the Property is soid in the first year through the fifth year of the term of the Note
secured by this Deed of Trust, Borrower shall receive thirty percent (30%) of the Equity in the
Property and Beneficiary shall receive seventy percent (70%) of the Equity. "Equity" is defined as
the dollar amount that constitutes the difference between the sales price of the Property and the
sum of the following amounts:
(c)
(d)
(e)
(I)
(g)
(a)
The principal on the First Note and the First Trust Deed, along with any interest
and fees due thereof; and
(b)
The principal on the Note secured by this Deed of Trust to the City of Chula
Vista, along with any fees due thereof; and
All costs of sale, including costs of brokers' commissions, escrow fees, title costs
and fees, recording costs, etc.; and
Current year taxes, including all real estate taxes prorated to the date of sale;
and
The down payment paid by Borrower when he/she/they purchased the Property,
not including the loan from Beneficiary to Borrower; and
The costs of any improvements to the Property, provided such improvements
were approved by the City prior to construction and provided that such
improvements have been documented to the satisfaction of the City; and
The costs of any Borrower-elected options and upgrades included in the Property
that are not included in the plans and specifications of standard production units
for which Borrower paid cash at the time Borrower purchased the Property.
The amount of Borrower's share in the Equity of the Property shall increase by the percentages
set forth in the table above, measured on the anniversary date of this Deed of Trust.
Correspondingly, Beneficiary's share in the equity of the Property shall decrease by the
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percentages set forth in the table above. For the sake of example, if the Property is sold more
than five (5) but less than six (6) years after the date of this Deed of Trust, Beneficiary would
have a seventy percent (70%) share in the equity and Borrower would have a thirty percent (30%)
share in the Equity of the Property.
In the event of a Transfer, the entire unpaid principal of the Note together with accrued default
interest thereon, if any, shall become immediately due and payable. The Equity payable to
Beneficiary is in addition to such unpaid principal and interest. In the event that no Equity exists
at the time of transfer or sale, full amount of the principal of the Note secured hereby shall be
required to be repaid to Beneficiary (item 14b above) will still be due and payable. In the event
that a negative Equity situation exists, and the full amount of the principal of the Note secured
hereby shall be required to be repaid to Beneficiary.
(a)
The following shall not constitute a Transfer:
(b)
(c)
(d)
(e)
(f)
A transfer of the Property from a deceased Borrower to the surviving spouse of
Borrower if the surviving spouse is also named as a Borrower,
A transfer of the Property by Borrower to his/her spouse pursuant to which the
spouse becomes a co-owner of the Property;
A transfer of the Property resulting from a decree of dissolution of the marriage
or legal separation or from a property settlement agreement incidental to such a
decree which requires Borrower to continue to make payments on the Note and
by which a spouse who is already a Borrower becomes the sole owner of the
Property;
A transfer of the Property by Borrower to an inter-vivos trust in which Borrower
is the sole beneficiary and which is done for estate planning purposes only and
does not result in any change in possession of the Property;
A refinancing to which Beneficiary under this Deed of Trust is obligated to
subordinate this Deed of Trust; and
A refinancing which does not result in cash excess paid to Borrower or which is
used for debt consolidation, equity line of credit or similar purposes.
Provided that Borrower is not in default under the terms of the Note or this Deed of Trust, no
interest shall accrue under the Note. Beneficiary shall not share any Equity unless the principal
balance of the Note is prepaid or becomes accelerated prior to the forty-fifth (45th) year after the
date of the execution of the Note, as provided in Section 5 of the Note. Nothing contained in this
Paragraph or Section 5 of the Note shall be construed as a promise by Beneficiary to forgive or
relinquish the right to seek repayment of the principal of the Note.
NON-UNIFORM COVENANTS
Borrower and Beneficiary further covenant and agree as follows:
Acceleration. Remedies. Upon Borrower's breach of any covenant or agreement of Borrower in
this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of
Trust, Beneficiary, prior to acceleration, shall give notice to Borrower as provided in Paragraph 12
hereof specifying:
16.
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(a)
(b)
(c)
(d)
The breach;
The action required to cure such breach;
A date, not less than 10 days from the date the notice is mailed to Borrower, by
which such breach must be cured; and
That failure to cure such breach on or before the date specified in the notice may
result in acceleration of the sums secured by this Deed of Trust and sale of the
Property.
The notice shall further inform Borrower of the right to reinstate after acceleration and the right to
bring a court action to assert the nonexistence of a default or any other defense of Borrower to
acceleration of saie. If the breach is not cured on or before the date specified in the notice,
Beneficiary, at Beneficiary's option, may declare all of the sums secured by this Deed of Trust to
be immediately due and payable without further demand and may invoke the power of sale and
any other remedies permitted by applicable law. Beneficiary shall be entitled to collect all
reasonable costs and expenses incurred in pursuing the remedies provided in this Paragraph,
including, but not limited to, reasonable attorneys' fees.
If Beneficiary invokes power of sale, Beneficiary shall execute or cause Trustee to execute a
written notice of the occurrence of an event of default and of Beneficiary's election to cause the
Property to be sold and shall cause such notice to be recorded in each county in which the
Property or some part thereof is located. Beneficiary or Trustee shall mail copies of such notice
in the manner prescribed by applicable law. Trustee shall give public notice of sale to the
persons and in the manner prescribed by applicable law. After the lapse of such time as may be
required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public
auction to the highest bidder at the time and place and under the terms designated in the notice
of sale in one or more parcels and in such order as Trustee may determine. Trustee may
postpone sale of all or any parcel of the Property by public announcement at the time and place
of any previously scheduled sale. Beneficiary or Beneficiary's designee may purchase the
Property at any sale.
Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any
covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie
evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the
following order.
(a)
(b)
(c)
17.
To all reasonable costs and expenses of the sale, including, but not limited to,
reasonable Trustee's and attorneys' fees and costs of title evidence;
To all sums secured by this Deed of Trust; and
The excess, if any, to the person or persons legally entitled thereto.
Borrower's RiQht to Reinstate. Not withstanding Beneficiary's acceleration of the sums secured
by this Deed of Trust due to Borrower's breach, Borrower shall have the right to have any
proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to
five days before sale of the Property pursuant to the power of sale contained in this Deed of Trust
or at any time prior to entry of a judgment enforcing this Deed of Trust if:
(a)
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24426-00044/1971755.1
Borrower pays Beneficiary all sums, which would be then due under this Deed of
Trust, and the Note, had no acceleration occurred;
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18.
19.
20.
21.
22.
23.
24.
(b)
Borrower cures all breaches of any other covenants or agreements of Borrower
contained in this Deed of Trust;
(c)
Borrower pays all reasonable expenses incurred by Beneficiary and Trustee in
enforcing the covenants and agreements of Borrower contained in this Deed of
Trust, and in enforcing Beneficiary's and Trustee's rights as provided in
Paragraph 15 hereof, including, but not limited to, reasonable attorneys' fees;
and
(d)
Borrower takes such action as Beneficiary may reasonably require to assure that
the lien of this Deed of Trust, Beneficiary's interest in the Property and
Borrower's obligation to pay the sums secured by this Deed of Trust shall
continue unimpaired.
Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby
shall remain in full force and effect as if no acceleration had occurred.
Reconvevance. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall
request Trustee to reconvey the Property and will surrender this Deed of Trust and all Notes
evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the
Property without warranty and without charge to the person or persons legally entitled thereto.
Such person or persons shall pay all costs of recordation, if any.
Substitute Trustee. Beneficiary, or any successor in ownership of any indebtedness secured
hereby, may from time to time appoint a successor trustee to any Trustee appointed hereunder
by an instrument executed and acknowledged by Beneficiary and recorded in the office of the
Recorder of the county where the Property is located. The instrument shall contain the name of
the original Lender, Trustee and Borrower, the book and page where this Instrument is recorded
and the mime and address of the successor trustee. The successor trustee shall, without
conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee
herein and by applicable law. This procedure for substitution of trustee shall govern to the
exclusion of all other provisions for substitution.
ReQuest for Notices. Borrower requests that copies of the Notice of Default and Notice of Sale
be sent to Borrower's address, which is the Property Address. Beneficiary requests that copies of
notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be
sent to Beneficiary's address, as set forth on Page One of this Deed of Trust as provided by
Section 2924b of the Civil Code of Califomia.
Fee for ReQuested Statements. Beneficiary may charge a fee not to exceed Sixty Dollars
($60.00) for furnishing the statement of obligation as provided in Section 2943 of the Civil Code of
California.
Deed of Trust Rider. Borrower warrants to Beneficiary that Borrower is qualified to purchase the
Property pursuant to the criteria set forth in City Council Policy No. 435-02 (Affordable For Sale
Housing for Low Income Buyers), which became effective on December 9, 2003.
Warranties of Borrower. Borrower warrants to Beneficiary that Borrower is qualified to purchase
the Property pursuant to the criteria set forth in City Council Policy No. 435-02 (Development of
Affordable For Sale Housing for Low-Income Buyers), which became effective on December 9,
2003.
Subordination To First Deed of Trust. Beneficiary and Borrower acknowledge and agree that
this Deed of Trust is subject to and will subordinate in all respects to the liens, terms, covenants
and conditions of the First Trust Deed recorded prior to this Deed of Trust, which secures the
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institutional loan as evidenced by a promissory note (herein "First Note"), the proceeds of which
were used by Borrower to purchase the Property and to all advances heretofore made or which
may hereafter be made pursuant to the First Trust Deed including all sums advanced for the
purpose of:
(a)
Protecting or further securing the lien of the First Trust Deed, curing defaults by
Borrower under the First Trust Deed or for any other purpose expressly
permitted by the First Trust Deed, and
(b)
Constructing, renovating, repairing, furnishing, fixturing or equipping the
Property.
The terms and provisions of the First Trust Deed are paramount and controlling, and they
supersede any other terms and provisions hereof in conflict therewith. In the event of a
foreclosure of deed in lieu of foreclosure of the First Trust Deed, any provisions herein or any
provision in any other collateral agreement restricting the use of the Property to low or moderate
income households or otherwise restricting Borrower's abiiity to sell the Property shall have no
further force or effect on subsequent owners or purchasers of the Property. Any person,
including his/her successors or assigns (other than Borrower or a related entity of Borrower),
receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Trust
Deed shall receive title to the property free and clear from such restrictions.
Further, if the First Trust Deed Beneficiary acquires title to the Property pursuant to a deed in lieu
of foreclosure, the lien of this Deed of Trust shall automatically terminate upon the First Trust
Deed Beneficiary's acquisition of title, provided that:
(a)
Beneficiary has been given written notice of a default under the First Trust
Deed, and
(b)
Beneficiary shall not have cured the default under the First Trust Deed, or
diligently pursued curing the default as determined by the First Trust Deed
holder, within the 60-day period provided in such notice sent to Beneficiary.
Beneficiary and Borrower further acknowledge and agree that this Deed of Trust will only
subordinate for a rate and term refinance of the First Trust Deed at the discretion of Beneficiary
and shall not be subject to subordination for a cash out refinance, equity line of credit or any other
such form of refinance as deemed inappropriate by Beneficiary.
25.
Subordination To Refinancing First Trust Deed. Beneficiary agrees to subordinate this Deed
of Trust to a new first deed of trust, the proceeds of which are to refinance the First Trust Deed
loan, provided that the new loan is not in an amount in excess of the then existing First Trust
Deed loan plus costs of the refinancing; that is a refinancing which does not result in cash excess
or which is used for debt consolidation, equity line of credit or similar purposes. The new loan to
be subordinated to must be at a fixed interest rate and fully amortized over a term of not less than
thirty (30) years.
26.
Funds for Taxes and Insurance. Beneficiary will waive collection of impounds for taxes and
assessments (including condominium, PUD and planned residential development assessments, if
any). Borrower will make all payments for impounds to the First Trust Deed holder.
27.
Riders to this Deed of Trust. If one or more riders are executed by Borrower and recorded
together with this Deed of Trust, the covenants and agreements of each such rider shall be
Shea Homes/Rolling Hills
Deed ofTrust
24426-00044/1971755.1
9
/ ()-- 3 'g
06/07/04
incorporated into and shall amend and supplement the covenants and agreements of this Deed of
Trust as if the rider(s) were a part of this Deed of Trust. [Check applicable box(es)
0 Transfer Rider
0 1-4 Family Rider
0 Other(s) [specify]:
0 Condominium Rider
0 PUD Rider
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Deed
of Trust and in any rider(s) executed by Borrower and recorded with it.
Shea Homes/Rolling Hills
Deed of Trust
24426-00044/1971755.1
10
/1)--31
06107/04
ACKNOWLEDGMENT:
State of California
County of San Diego
On
before me,
, Notary, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose
name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed
the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature:
Shea Homes/Rolling Hills
Deed ofTrust
24426-00044/1971755.1
11
/0- '10
06107/04
DO NOT RECORD THIS PAGE
REQUEST FOR RECONVEYANCE
TO TRUSTEE:
The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes,
together with all other indebtedness secured by this Deed of Trust, have been paid in full. You are
hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to
reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or
persons legally entitled thereto.
Dated:
DO NOT LOSE OR DESTROY THIS DEED OF TRUST OR THE NOTE WHICH IT SECURES. BOTH
MUST BE DELIVERED TO THE TRUSTEE FOR CANCELLATION BEFORE RECONVEYANCE WILL
BE MADE.
Shea Homes/Rolling Hills
Deed ofTrust
24426-00044/1971755.1
12
/0-11
06107/04
A CONDOMINIUM COMPRISED OF:
Shea Homes/Rollin9 Hills
Deed of Trust
24426-00044/1971755.1
EXHIBIT "A"
LEGAL DESCRIPTION
13
If) -LJ?'
06/07/04
CONDOMINIUM RIDER
THIS CONDOMINIUM RIDER is made this - day of , 200_, and is incorporated into and
shall be deemed to amend and supplement the Deed of Trust (Shared Appreciation) ("Deed of Trusf')
and the Promissory Note ("Note") of the same date herewith given by the undersigned ("Borrower") to
secure Borrower's performance under the Note in favor of the City of Chula Vista, a municipal corporation
("City") and covering that certain real property described in the Deed of Trust ("Property") and located at:
(Property Address)
The Property includes a unit in, together with an undivided interest in the common elements of, a
condominium project known as:
(Name of Condominium Project)
("Condominium Project"). If the owners association or other entity which acts for the Condominium
Project ("Owners Association") holds title to property for the benefit or use of its members or
shareholders, the Property also includes Borrower's interest in the Owners Association and the uses,
proceeds and benefits of Borrower's interest therein.
CONDOMINIUM COVENANTS
In addition to the covenants and agreements made in the Deed of Trust, Borrower and City further
covenant and agree as follows:
1.
Condominium Obligations. Borrower shall perform all of Borrower's obligations under the
Condominium's Constituent Documents. The "Constituent Documents" are the (I) declaration of
covenants, conditions and restrictions; (ii) articles of incorporation, trust instrument or any
equivalent document which creates the Owners Association; and (Hi) any by-laws or other rules or
regulations of the Owners Association. Borrower shall promptly pay, when due, all dues and
assessments imposed pursuant to the Constituent Documents.
2.
ProDertv Insurance. So long as the Owners Association maintains, with a generally accepted
insurance carrier, a "master' or "blanket" policy insuring the Property which is satisfactory to City
and which provides insurance coverage in the amounts (including deductible levels) for the
periods, and against loss by fire, hazards included within the term "extended coverage," and any
other hazards, including but not limited to, earthquakes and floods, for which City requires
insurance, then: (i) City waives the provision for the periodic payment to City of the yearly
premium installments for property insurance on the Property; and (Ii) Borrower's obligation under
Paragraph 5 of the Deed of Trust to maintain property insurance coverage on the Property is
deemed satisfied to the extent that the required coverage is provided by the Owners Association
policy.
(a)
What City requires as a condition of this waiver can change during the term of
the loan.
(b)
Borrower shall give City prompt notice of any lapse in required property
insurance coverage provided by the master or blanket policy.
(c)
In the event of a distribution of property insurance proceeds in lieu of restoration
or repair following a loss to the Property, or to common areas and facilities of the
planned unit development ("PUD"), any proceeds payable to Borrower are
hereby assigned and shall be paid to City. City shall apply the proceeds to the
Shea Homes/Rolling Hills
Deed of Trust
24426-00044 /1 971755.1
14
/0-'13
06107/04
sums secured by the Deed of Trust, whether or not then due, with the excess, if
any, paid to Borrower.
3.
Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure
that the Owners Association maintains a public liability insurance policy acceptable in form,
amount, and extent of coverage to City.
4.
Condemnation. The proceeds of any award or claim for damages, direct or consequential,
payable to Borrower in connection with any condemnation or other taking of all or any part of the
Property or the common areas and facilities of the PUD, or for any conveyance in lieu of
condemnation, are hereby assigned and shall be paid to City. Such proceeds shall be applied by
City to the sums secured by the Deed of Trust as provided in Paragraph 9 of the Deed of Trust.
City's Prior Consent. Borrower shall not, except after notice to City and with City's prior written
consent, either partition or subdivide the Property or consent to: (i) the abandonment or
termination of the PUD, except for abandonment or termination required by law in the case of
substantial destruction by fire or other casualty or in the case of a taking by condemnation or
eminent domain; (ii) any amendment to any provision of the "Constituent Documents" if the
provision is for the express benefit of City; (iii) termination of professional management and
assumption of self-management of the Owners Association; or (iv) any action which would have
the effect of rendering the public liability insurance coverage maintained by the Owners
Association unacceptable to City.
5.
6.
Remedies. If Borrower does not pay PUD dues and assessments when due, then City may pay
them. Any amounts disbursed by City under this Paragraph 6 shall become additional debt of
Borrower secured by the Deed of Trust. Unless Borrower and City agree to other terms of
payment, these amounts shall bear interest from the date of disbursement at the Note default rate
and shall be payable, with such accrued interest, upon notice from City to Borrower requesting
payment.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this
Condominium Rider.
Date:
Date:
Shea HomesIRollin9 Hills
Oeed ofTrust
24426-00044/1971755.1
15
¡D,tlt!
06/07/04
EXHIBIT D
FORM OF SUPPLEMENTAL BUYER APPLICATION
EXHIBIT "D"
1
City of Chuia Vistaffrimark Pacific
Affordahle Housing Agreement
24426-44/~~
//J- 1/5
6/G8WO4
Dear Applicant:
Thank you for your application to the Shea Homes Sedona project. The successful
completion of the application process may result in your being qualified for an
Affordable Housing Unit. Therefore, it is very important that you take the time to
read and understand the Program Requirements and that you complete the
Application and attach all required documentation.
Sedona at Rolling Hills Ranch
Sedona offers terraced row homes from approximately 1,410 to 1,560 sq. ft.
Each unit has a 2- car garage, 2-3 bedrooms, and 3-4 baths. Community
amenities include barbeque areas, a child play area, pool, spa and access to a
public trail system.
Sedona will include 32 Affordable Units.
11-2 bedrooms (1,410 sq ft)
11-2 bedrooms + bonus room (1,458 sq ft)
10-3 bedrooms (1,560 sq ft)
The Affordable Housing Units will be sold at the market rate price. but the City will
provide a silent second loan for the difference between the market rate price and
the Affordable Housing Unit Price as determined by your household income.
APPLICATIONS WILL BE ACCEPTED UNTIL AUGUST 1. NO LATE OR
INCOMPLETE APPLICATIONS WILL BE CONSIDERED. NO EXCEPTIONS.
AFFORDABLE HOUSING UNITS
The City of Chula Vista has established an Affordable For Sale Housing Policy that
governs all affordable for sale housing units constructed within the City. In order
to qualify to purchase an Affordable Housing Unit, applicants must meet ALL of
the requirements outlined within this document. Please do NOT submit an
application if you do not meet ALL of the requirements.
Income restrictions apply. Please refer to the chart below for the MAXIMUM gross
income based upon household size, which is defined as the total number of people
residing within the household. Gross income is the total amount of income earned
by all persons, over the age of 18, within the household before all standard
withdrawals (including federal tax, state tax, social security, etc.)
Household 1 2 3 4 5 6 7
Size
Maximum $38,350 $43,850 $49,300 $54,800 $59,200 $63,500 $67,950
Gross
Income
/ ~ -"'~
AFFORDABLE HOUSING PROGRAM REQUIREMENTS
.
Buyer must be a First time Homebuyer, which is defined as a person who
has not had ownership interest in their primary residence within the last
three years
.
Have an annual gross income that does not exceed the program limits as
described earlier
.
Have sufficient funds available to contribute the required downpayment of
three percent (3%) of the Affordable Purchase Price plus closing costs.
These funds may be gifted, per standard mortgage loan regulations.
Downpayment assistance programs may NOT be used in conjunction with
this program.
.
Maximum liquid assets after down payment and closing cost contribution
must not exceed $25,000.
.
Property must be owner-occupied for the duration of ownership of the unit.
Buyers may not rent or lease out the property.
.
Must be able to qualify for the loan with the incomes of only the members
who will occupy the Affordable Unit. Non-occupant co-borrowers are NOT
allowed.
.
Maximum debt to income ratios will apply: Maximum total housing ratio of
36% for FHA loans and 40% for all other loans. Maximum debt-to-income
ratios of 41 % for FHA loans and 45% for all other loans
.
Be a citizen or other national of the United States or a qualified alien as
defined by the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA)
.
Attend a qualified "Home Training Program" or "First Time Home Buyer
Program" and provide evidence to the City and to the Lender of your
attendance.
.
Meet credit, income and loan requirements of the lender and the mortgage
insurer.
.
Be pre-qualified by Shea Mortgage Inc. in order to purchase an Affordable
Unit. Be advised that you may obtain a mortgage from any lender, but due
to the extensive requirements for this Affordable Housing Development
many lenders may have difficulty qualifying you.
Shea Homes Sedona Project
/0 -t/1
2
Page
AFFORDABLE HOUSING RESTRICTIONS
The purpose of this program is to provide affordable homeownership opportunities
for low-income households and to ensure that upon sale of the Affordable Housing
Unit the City of Chula Vista receives adequate funds to continue to promote
affordable homeownership programs throughout the City.
Therefore, if you purchase an Affordable Housing Unit a Second Trust Deed
restriction will be placed on the property for the silent second loan that you receive
from the City. This is the difference between the Market Rate Price of the Unit
and an established Affordable Housing Unit Price. When you sell the Affordable
Housing Unit you will have to repay the amount of the Second Trust Deed plus a
portion of the equity with the City of Chula Vista based upon the length of time
that you have occupied the Affordable Unit. The longer you live in the Affordable
Unit the less equity you have to share with the City. Regardless of when you sell
the Affordable Unit you are ALWAYS responsible for repayment of the Second
Trust Deed amount.
BACKGROUND INFORMATION FOR EXAMPLE
For purposes of understanding the calculation for the Affordable Sales Price the
assumptions utilized are indicated below in Table 1. All factors will be subject to
the normal costs and fees as associated with the purchase of the homeownership
property based upon the real estate market and negotiations between the City and
Shea Homes at the time of the development proposal. The criteria included that
will remain constant are the percentage of down payment, term of the loan and the
maximum total debt to income ratio.
Table 1
CRITERIA
Downpayment
Interest Rate
Term of Loan
Taxes & Insurance
HOA Fees and Mello Roos, if applicable
Closing Costs & Fees
Maximum Total Debt to Income Ratio
Shea Homes Sedan a Project
VARIABLES
3% of Purchase Price
6%
30 years
1 .5% of Purchase Price
$175/month
2.5% of Loan Amount
36% of monthly income
I
It} -'Ig
Page
3
Table 2 utilizes the assumptions indicated in Table 1 to determine what the
maximum Affordable Purchase Price is based upon household size. This calculation
is then incorporated into the formula that determines what the Second Trust Deed
amount will be.
Table 2
Monthly Funds Affordoble
Household Annuol Monthly Housing Texes, HOA, Availoble Max Loan Down Purchase
Size Income' Income Ccst@ Insurcnce Pcyment
36% for P&I Price
1 35,750 2,979 1,073 334 739 123,277 3,813 127,090
2 40,850 3,404 1,226 361 865 144,293 4,463 148,756
3 45,950 3,829 1,379 388 990 165,309 5,113 170,421
4 51,050 4,254 1,532 415 1,116 186,324 5,763 192,087
5 55,100 4,592 1,653 437 1,216 203,013 6,279 209,292
6 59,200 4,933 1,776 458 1,318 219,908 6,801 226,709
7 63,300 5,275 1,899 480 1,419 236,803 7,324 244,126
8 67,350 5,613 2,021 502 1,519 253,491 7,840 261,331
A Silent Second Loan will be recorded against the property in the form of a Second
Trust Deed in favor of the City. The purpose of this loan is to make the
homeownership unit affordable to the low-income buyer while maintaining the
market value of the property. The Silent Second Loan is defined as a loan that
does not require any payments but becomes due and payable upon sale, transfer,
refinance, rental or change in title of the property. As indicated in Table 3 based
upon the market value of the home, as established by the City and the Developer,
a Silent Second Loan amount will be calculated based upon the difference between
the Market Rate Price (MRP) and the Affordable Sales Price (ASP),
Silent Second Loan Amount = MRP-ASP
Table 3
Morkel Value of Home
McxAff Second Trust Oeed Amount
Household Size Purchase Price
(Tobie 2) $ 230,000 $ 240,000 $ 250,000 $ 260,000 $ 270,000
1 $ 127,090 $ 102,910 $ 112,910 $ 122,910 $ 132,910 $ 142,910
2 $ 148,756 $ 81,244 $ 91,244 $ 101,244 $ 111,244 $ 121,244
3 $ 170,421 $ 59,579 $ 69,579 $ 79,579 $ 89,579 $ 99,579
4 $ 192,087 $ 37,913 $ 47,913 $ 57,913 $ 67,913 $ 77,913
5 $ 209,292 $ 20,708 $ 30,708 $ 40,708 $ 50,708 $ 60,708
6 $ 226,709 $ 3,291 $ 13,291 $ 23,291 $ 33,291 $ 43,291
7 $ 244,126 N/A N/A $ 5,874 $ 15,874 $ 25,874
8 $ 261,331 N/A N/A N/A N/A $ 8,669
Shea Homes Sedan a Project
10 - 'Ie¡
Page
4
The equity share determines the amount of equity that both parties will receive
upon sale, transfer, refinance, rental or change of title on the property and is based
upon the length of time that the Homeowner has occupied the property. Based
upon Table 4 below, if the Homeowner sells, transfers, rents or reconveys the
property before one year of occupancy has passed, the City shall retain 100% of
the equity in the property.
Occupancy Period City Homeowner
(years) Equity Share Equity Share
1-5 70% 30%
6-10 60% 40%
11-15 50% 50%
16-20 40% 60%
21-25 30% 70%
26-30 20% 80%
31-35 10% 90%
36-45 5% 95%
EXAMPLE
A family of three purchases a two-bedroom unit for the market rate value of
$250,000. The household would qualify for the maximum allowable purchase
price of $170,421 (Table 2) and the Developer/Builder would provide a Silent
Second Loan in favor of the City for the difference between the market rate price
and the maximum allowable purchase price equaling $79,579 (Table 3).
Five years later, assuming a sales price of $350,000, the Homeowner decides to
sell the property. The Homeowner would receive their initial downpayment amount
of $5,112 plus $28,000 (8% of the sales price) as reimbursement for the costs
associated with the sale of the property plus their equity share amount of
$26,193, which is 30% of the remaining equity. The Homeowner would make full
payment to the City on the principal of the Silent Second Loan ($79,579) PLUS
70% of the remaining equity based upon the length of occupancy (Table 4).
Therefore, the total amount repaid to the City upon resale would be $140,695.
Current Sales Price (5 years later)
EXAMPLE TABLE
Equity
$
1st Loan $
2nd Loan $
Borrower's Investment (Initial DP= 3% of$170,421+Costs of Sale 8% of sales price) $
$
Times Equity Share Percentage
Equity Share (City)
epaymen 0 n oan qU¡y are
TOTAL EQUITY TO HOMEOWNER (Borrower's Initial Investment + Equity Share)
Shea Homes Sedona Project
/tì~S()
Page
$
$
$
350,000
(150,000)
(79,579)
(33,112)
87,309
70.0%
61,116.30
140,695
59,305
5
BUYER SELECTION CRITERIA
The Developer will use the following criteria in order to determine priority for
purchase of an Affordable Unit. A point system has been established so that
applicants with a higher number of points will receive preference for units.
5 points
3 points
2 points
1 point
Households which are displaced from their primary residence as a
result of any of the following: (i) expiration of affordable housing
covenants applicable to such residence; (ii) an action of City or
Agency; (iii) closure of a mobilehome or trailer park community in
which the household's residence was located; or (iv) a condominium
conversion involving the household's residence. One member in the
households must have resided in such housing as the primary place of
residence for at least one year prior to such action or event.
Households with at least one member who has worked within the City
of Chula Vista, as that person's principal place of full-time
employment, for at least one year prior to the date of application for
such housing.
Households with at least one member who is a Public Safety
employee (fire and police) or Credentialed Teacher.
All other applicants who do not meet any of the above criteria.
In the situation where there are applicants with an equal number of points but not
enough units available, a lottery will be held at a place and time to be announced
by the City and Shea Homes.
In addition to the established point system, consideration for units will be given to
larger families based upon the number of bedrooms per unit. Please be advised
that you will be required to verify each household member that you indicate will
occupy the unit.
.
.
.
MORTGAGE LENDER REQUIREMENTS
Buyers must have good credit history and good credit scores.
Buyers must have good job history and steady income.
Buyers must have enough stable and documented income for the proposed
housing payment in addition to any current monthly debt.
Shea Homes Sedona Project
I () ~51
Page
6
APPLICATION REVIEW PROCESS
.
Applicants will be contacted by Shea Homes sales staff via U.S. mail
acknowledging receipt of complete application and supporting
documentation.
.
Shea Homes and the City will review all applications to determine eligibility.
.
Eligible applications will be forwarded to Shea Mortgage, Inc. to be reviewed
for eligibility. Please be advised that your financial information will be
reviewed for two different purposes:
To determine that your household annual income does NOT exceed
the maximum allowed by the City of Chula Vista for the Affordable
Housing Purchase. ALL income will be considered for all persons
living in the home who are 18 years or older, even if the income is not
taxable income.
To determine if your income, employment history and credit rating are
sufficient to qualify for a mortgage. Only the income for those adults
who will occupy the home and be the recipients of the mortgage loan
is used in determining qualification for a mortgage
Before you submit your complete application and supporting documentation please
ask yourself the following questions. Do you:
.
Meet ALL the program requirements?
Have a good credit rating?
Have stable job time and income?
Have funds for the 3% down payment and closing costs?
.
.
.
If you have answered yes to ALL the above questions.........
Fill out the attached application and submit it plus ALL required documentation and
MAIL to:
Fast Track, P.O. Box 80246, San Diego, CA 92138-0246
Shea Homes Sedona Proiect
10 -5é7-
Page
7
",;.
i
. ..-...----------.----. SheåMQng~e .----. .'-.....--......
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'__1: lIWo ",JIIty"".1 01...1nform811on IIW. - _In"" ...,....,10 """ and ""'."'0"."" 0' '"" knowIodo..lIWa
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" ...., end ....... 0 Cons..... ~ - 10" -- In conn_"" ... 0""'- 01 ... ........n~
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NOTES,
/0 - 53
AFFORDABLE HOUSING UNIT SUPPLEMENTAL APPLICATION
(1) APPLICANT #1
First Name
Middle
Last Name
Social Security Number
Age
(2) APPLICANT
First Name
Middle
Last Name
Social Security Number
Age
HOUSEHOLD INFORMATION: List all household members that will reside in the Affordable Housing
Unit
Total # of persons in Household
Total yearly Household Income $
Age
M/F
Name
--
Name
--
Age
M/F
Age
M/F
Name
--
Age
M/F
Name
--
--
Age
M/F
--
Age M/F
Name
Name
Age
M/F
Name
--
Age
M/F
Name
--
BUYER SELECTION CRITERIA INFORMATION: If you respond YES to any of the questions
below, you MUST provide written evidence with your application or you will not receive
the appropriate amount of points necessary to qualify.
Did you have to leave your most recent PRIMARY residence due to either: 1) the expiration
of affordable housing covenants; 2) an action of the City of Chula Vista or its
Redevelopment Agency; 3) closure of the mobilehome park that you resided in; or 4) the
conversion from rental condominiums to for-sale condominiums. Please note that in order
for you to be eligible under this category at least one member of your household must
have resided in the unit for at least one year.
DYes
D
No
Do you have one member of your household whose principal place of full-time
employment is located within the City of Chula Vista?
DYes
D
No
Do you have any member of your household is a Public Safety employee (fire and
police) or credentialed teacher?
DYes
D
No
Shea Homes Sedona Project
/0. S"sj
Page
8
AFFORDABLE HOUSING UNIT CHECKLIST
This checklist contains a list of documents that you are REQUIRED to submit,
along with the completed Application as part of the application review process.
Please review the list carefully and include COPIES of all documents that you are
submitting. If there are any documents listed that you do not believe you are
required to submit please indicate N/A and state the reason why the information is
not attached. You must attach this signed checklist as part of your application
packet.
IJ Six months of most current and consecutive bank/investment/retirement
statements for ALL accounts (all pages)
IJ Most recent paycheck stubs covering a 30-day period for each borrower
IJ Most recent two (2) years W-2s and/or 1 099s for each borrower
IJ Most recent two (2) years Federal Tax Returns for each borrower (all
schedules)
IJ Complete divorce decree(s) with all attachments, if applicable
IJ Complete bankruptcy papers with all schedules and discharge papers for
bankruptcies within the last 7 years, if applicable
IJ Copy of Resident Alien card, front and back, if applicable or other
appropriate proof of legal U.S. residency
If self-employed, also provide the following:
0 Most recent two (2) years tax returns and copies of 1040s, W-2s, 1099s
and/or K-1 s for each borrower
0 Limited or General Partnership returns (if ownership interest is 25% or
greater)-copies of form 1065
0 Sub Chapter S Corporation returns (if ownership interest is 25% or greater)-
copies of form 11 20 S
0 U.S. Corporation returns (if ownership interest is 25% or greater)- copies of
form 11 20
0 YTD Profit and Loss Statement (in some cases this may need to be audited)
Shea Homes Sedona Project
Page
9
/()- SS
4.
5.
6.
7.
8.
9.
10.
11.
12.
AFFORDABLE HOUSING UNIT AFFIDAVIT
By signing below each applicant makes the following certifications:
I, the undersigned, as part of my application for an Affordable Housing Unit within
the Shea Homes Sedona development (the "Program"), and in connection with a
purchase of a single-family home (the "Residence") and an application for a
mortgage loan (the "Mortgage Loan") from a lender (the "Lender") of my choosing,
do hereby state that I have carefully reviewed this document. I understand and
agree with the answers on Pages One and Two, and do furthermore certify the
following:
1.
That those people who I expect to share occupancy of the Residence with
me are listed on Page One of the Application.
That my spouse, whether on title or not, is an Applicant for the Program and
must sign this Application.
That I am a first-time home buyer, who has not had an ownership interest in
a principal residence within the three years immediately preceding the date
of this application, and I do not and will not have an ownership interest in a
principal residence prior to the date of loan closing. (A principal residence
includes a single-family residence, a condominium, share in a housing
cooperative, any manufactured home or mobilehome, or occupancy in a
multifamily residence owned by me. An ownership interest means
ownership by any means, whether outright or partial, including property
subject to mortgage or other security interest; it also includes a fee simple
ownership interest, a joint ownership interest by joint tenancy in common, or
tenancy by the entirety or a life estate interest.)
That I will submit true and complete copies of all requested documentation.
That the Residence will be occupied and used as my principal place of
residence within 30 days of the date of Mortgage Loan closing.
That the Residence will not be used as an investment property, vacation
home or recreation home
That I will notify the Program in writing if the Residence ceases to be my
principal residence.
That the Mortgage Loan is a first mortgage, not a replacement mortgage.
That my income does not exceed the program income limits
That no person related to me has, or is expected to have, an interest as a
creditor in the Mortgage Loan being acquired for the Residence.
That the City Loan is issued on my behalf and may not be transferred.
That I may seek financing from any Lender of my choosing, and that I am in
no way prohibited from seeking financing from any potential Lender, so long
as the Lender executes and complies with the terms of the Program
Guidelines.
2.
3.
Shea Homes Sedona Project
lo-5~
Page
10
AFFORDABLE HOUSING UNIT CERTIFICATION
I acknowledge and understand that this Affidavit, as completed above, will be
relied on for determining my eligibility for An Affordable Housing Unit. I
acknowledge that a material misstatement negligently made by me in this Affidavit
or in any other connection with my Application for an Affordable Housing Unit will
constitute a violation punishable by a fine and possible criminal penalties imposed
by law, and will result in the cancellation or revocation of the Loan. I acknowledge
that any false statement or misrepresentation or the fraudulent use of any
instrument, facility, article, or other valuable thing or service pursuant to my
participation in the Program is punishable by fine.
BUYER
DATE
BUYER
DATE
BUYER
DATE
BUYER
DATE
Shea Homes Sedona Project
/0-51
Page
11
City of Chul. VistalTrimark Pacifie
Affordable Housing Agreement
24426-441~19611724
SCHEDULE 1
LIST OF MARKET RATE PRICES
SCHEDULE "I" TO EXHffiIT "D"
1
/tJ -56
6198~O4
COUNCIL AGENDA STATEMENT
Item --"-
Meeting Date 06/15/04
ITEM TITLE:
Resolution Approving the Final Map ofChula Vista Tract No.
92-02, Rolling Hills Ranch Neighborhood 4A - Sedona; Approving the
associated Subdivision Improvement Agreement for the completion of
improvements; and approving an Associated Supplemental Subdivision
Improvement Agreement
Resolution Ordering the Summary Vacation ofthe Irrevocable Offer
of Dedication of Parcel "3" for Public Open Space and other Public Purposes per
Parcel Map No. 18595.
SUBMITTED BY: Director of General Services / City Engineer (:)?<'
a I"
REVIEWED BY: City Manager {rJ 1)(" (4/5ths Vote: Yes_NoX)
On December 4, 2000, the City Engineer approved a Parcel Map for Chula Vista Tract 92-02, Rolling
Hills Ranch Neighborhood 4A, recorded as Parcel Map No. 18595. Council will consider the approval
of Condominium Map and associated Improvement Agreements for the Sedona project (Neighborhood
4A of Rolling hills Ranch). Council will also consider the summary vacation of the Irrevocable Offer of
Dedication ("IOD") of Parcel "3" of Parcel Map No. 18595 since anew rOD has been offered with the
newly configured open space lot.
RECOMMENDATION: That Council adopt the resolutions.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable
DISCUSSION:
The project is located at the southeast comer of Mount Miguel Road and Mackenzie Creek Road, within
the area of Rolling Hills Ranch designated as Neighborhood 4A. The condominium map consists of 1
numbered lot and I lettered open space lot with a total area of 14.064 acres and a maximum of 167
units. (see Attachment I). It is important to note that approval of this map is contingent upon the
approval of the affordable housing agreement for the project (under a separate agenda
statement),
The condominium map has been reviewed by the Engineering Division and found to be in substantial
conformance with the approved Tentative Map. The developer has executed a Supplemental
Subdivision Improvement Agreement, to complete certain unfulfilled tentative map conditions
associated with the project and executed a Subdivision Improvement Agreement to construct the on-
site infrastructure required to serve the project. The Developer has also secured its share of the
development portion of the Park Acquisition and Development (PAD) fees for Rolling Hills Ranch
neighborhood and community parks. There are no public improvements within the subdivision.
11-/
Page 2, Item .JL-
Meeting Date 06/15/04
Summary Vacation ofIrrevocable Offer of Dedication
There were minor adjustments to the property line between the project and the adjacent open space lot,
Parcel 3 of Parcel Map 18595. The map under consideration by Council tonight provides a new
irrevocable offer of dedication for the open space lot (Lot "A"). The previous irrevocable offer of
dedication has been superceeded and is no longer necessary. Tonight's action will summarily vacate the
previous irrevocable offer. The open space lot is owned and maintained by the Rolling Hills Ranch
Home Owner's Association and, as such, the Association has signed the Map with the new irrevocable
offer of dedication to the City.
FISCAL IMP ACT: None to the City. Developer has paid all costs associated with the proposed map
and agreements.
Attachment:
Attachment 1: Plat - Chula Vista Tract 92-02, Rolling Hills Ranch, Neighborhood 4A.
Attachment 2: Developer's Disclosure Statement
Exhibit A: Subdivision Improvement Agreement.
Exhibit B: Supplemental Subdivision Improvement Agreement.
TA File No. 0600-80- RH 243F
J:IEngineerlLANDDEVlProjectsIRol¡;ng Hills RanchlNeighborhood 4AlA11J RHR N4A - Final DraftJ.doc
I !~2
ATTACHMENT 1
CHULA VISTA TRACT NO, 92-02
ROLLING HILLS RANCH
NEIGHBORHOOD 4A
"SEDONA"
0 300 600
1""""'1...--
SCALE 1"=300'
900
I
MAP NO. 18440
~
~
PM 186B6
à
"
"-
,¡
LOT 1
peL 2
2
\':!
LOT "A"
-------
MAP No. 12278
PM 16480
. HUNSAKER
~ & ASSOCIATES
'" "" 0, 'H
PLINNING 10179 H"~,,""'" S...,
EN"N""NC S~ D_,,- C. on"
SURVEYING PH('58)S5&45O0' fX(8S8}SS>1414
R:\O489\ð<loIap\AX S£DONA CITY OVERLAY.OWG{ 127S)Jun-O2-2004:16:JI
11-3
JUlI
1004 WED 05: 16 PM FROM: SHEA HOMES ACQ&COMM DEV
FAX: 8586355436
ATTACHMENT 2
City ofChula Vista DIsclosure Statement
Pursuant to Council Policy 101-0 I, prior to any action upon matters that will require discrctionlUy action by the
Council, ;planning Commission and .a11 other official bodies of the City, a statement of disclosure of certain
ownership or financial interests, payments, or campaign contributions for e City of Chula Vista 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 su¡bject of the ,
application or the contract, e.g., owner, applicant, contractor, subcontractor, material supp~er.
f-)\.¡~ \i~e'!. bmi.\....J. ~?
2. ' Ji any pen, on* identified pursuant to (1) above is a colporation or partMrship, list the1WDes of illl, ..~
ìndividue.ls with a $2000 investment in the business (colporation/partnership) entity. ð)~j,ßO. ~~1
@3,.Ç S~ä(',,", i\~~' ' @~r)~~o.dUe... ~¡¡)Þt~\..f
@.:í, F. 6htA L¿'~ - @V,re'1lJr>.."'Rr;~ U~ .@~~"c,1~ir!6hel
@J"oL-, Ç. 6~~~ }rJXjt, @13fk( ~ 1)ri\lf; ¿tt.¡ 1rl.6~ No,1,. .
, ,
3.
Ji any person;' identified pursuant to (I) above is a non-profit organi,za.tion or trust, list the namès of my
person serving as director of the non-profit organization or as trustee or beneficiliry or trust~r of the trust.
~~~i)~ír~ ~L.. 'Ç, 6h.tA ~~jJ6.J.u... I
JCff~ ûJa,ìrf- 6~eA 1'nJôr Äh.1¡ T<~o{ L. !..a}q"1,'Tru..k'
4.
, .
Please identifY every person, includiug any agents, employees, consultants, o~ indepen~ con1ractors '
you have assigned to represent you befere the City in this matter, ¡ .
t1~ r--'"~U I~ ~ ~ ~..J , ~~1.~
-~ J~ ~ ~ ~ V:""-r~8I . H~-L
, , .
&1.0- &~ ~ ~ ~ ~-^= ~"e,,<-
, , ,
5.
Has anyperson* associated with this contract had any financial dealings with an official" ~fthe City of
Chula Vista as it relates to this .contract within the past 12 months. Yes- NO~ ¡
/ ! -If
J)I¡
2004 WED 05:16 PM FROM: SHEA HOMES ACQ&COMM DEV
FAX: 8586355436
PAGE 3
City of Chula Vista Disd.osure StatelDent
IiYes, briefly describe the nature of the fin¡mcial interest the officia!" l114y.have'in this cþntraot.
I
~Ia !
6.
,
i
. Have yoU made a contribution .ofmorethan $250 within the past twelve (12) months to a~tmember
of the Chula Vista City Council? No~ Yes - If yes, which Council member? . !
~~ '.
7.
,
Have you provided more than $340 (or an item of equivalent value) to an official"'. of the dityofChula
Vista in the past twelve (12) months? (This includes being a source of income; money to ~etire a legal
~~~~~_.XJ
If Yes, which official" and what was the nature of item provided?
, . ,
V) ,'ð .
Date;~~ ~ ~
I I' .
/'-
Si e of Contractor/ AppliC8.tlt ,
~ f"'1AØrÌtJ / ~, ~
Print or type name of Contt'actorl APPlicrt .
Person is defined as: any individual, rum, co-p'arIIler!lhip~joint venture, association, socÍ~ c~~.'Ùb, ftater¡!al
organization, coIporation,. estate, trust, ~ceiver, syndicate, my other county, city,lDunicipa1i~, district:. or
other political subdivision, -or any other group or combination acting 8$ a unit. . i .
. i
Official includes, bllt is not limited to: Mayor, Council member, Planning ColXU:Òissioner, rember of a
board, co=ission, or comInittee ofthc City, employee, or staffmem,bers. .'. ' ¡
. ¡
i
.,
..
....
¡:IAIIanJc>IfoO1llldllC¡"""¡' 1tIIIc..... 3"".Q3
i
/1-£
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY OF CHULA VISTA APPROVING THE FINAL MAP
OF CHULA VISTA TRACT NO. 92-02, ROLLING HILLS RANCH
NEIGHBORHOOD 4A SEDONA; APPROVING THE ASSOCIATED
SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF
IMPROVEMENTS; AND APPROVING AN ASSOCIATED SUPPLEMENTAL
SUBDIVISION IMPROVEMENT AGREEMENT
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby finds that that certain map survey entitled Chula Vista Tract No. 92-02, Rolling
Hills Ranch Neighborhood 4A - Sedona, particularly described as follows:
Being a subdivision of Parcel I and 3 of Parcel Map No. 18595 Chula Vista Tract
No. 92-02 Rolling Hills Ranch Neighborhood 4A in the City of Chula Vista,
County of San Diego, State of California, filed in the office of the County
Recorder of San Diego County, on December 7, 2000.
Area: 14.064 Acres
Numbered Lots: I
No. of Lots: 2
Lettered Lots: I
is made in the manner and form prescribed by law and conforms to the surrounding surveys; and
that said map and subdivision ofland shown thereon is hereby approved and accepted.
BE IT FURTHER RESOLVED that said Council hereby accepts on behalf of the City of
Chula Vista the general utility and access easements, all as shown on Rolling Hills Ranch
Neighborhood 4A within said subdivision.
BE IT FURTHER RESOLVED that the City Clerk of the City ofChula Vista is hereby
authorized and directed to endorse upon said map the action of said Council; that said Council
has approved said subdivision map, and that those certain easements as granted on Rolling Hills
Ranch Neighborhood 4A within said subdivision are accepted on behalf of the City of Chula
Vista as hereinabove stated.
BE IT FURTHER RESOLVED that that certain Subdivision Improvement Agreement for
the completion of improvements in said subdivision, a copy of which is on file in the Office of
the City Clerk is hereby approved.
BE IT FURTHER RESOLVED that that certain Supplemental Subdivision Improvement
Agreement for addressing on-going conditions of approval that will remain in effect and run with
the land for the map, a copy of which is on file in the Office of the City Clerk is hereby
approved.
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to transmit said
map to the Clerk of the Board of Supervisors of the County of San Diego.
/I -t:,
Resolution
Page 2
BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby
authorized and directed to execute said agreements for and on behalf of the City of Chula Vista.
Presented by
Approved as to form by
Jack Griffin
Director of General Services
!~~ /~
City Attorney
nEng;neeclLANDDEVIProjectslRolling H;lls RanchINe;ghbo,hood 4A IRESO N4A 05-28-04.doc
11- 7
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
tY ~o~
City Attorney
Dated: (, -Û -0 i
Approving the Associated Subdivision
Improvement Agreement for the completion of
Improvement for Rolling Hills Ranch
Neighborhood 4A - Sedona
//-g
Recording Requested by:
CITY CLERK
When Recorded, Mail to:
CITY OF CHULA VISTA
276 Fourth Avenue
Chula Vista, CA 91910
No transfer tax is due as this is a conveyance
to a public agency ofless than a fee interest
for which no cash consideration has been paid or
received.
Declarant
SUBDIVISION IMPROVEMENT AGREEMENT
THIS AGREEMENT, made and entered into this - day of , 2004, by and
between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City",
SHEA HOMES LIMITED PARTNERSHIP, a California limited partnership, 10650 Treena
Street, Suite 210, San Diego, CA, hereinafter called "Subdivider" with reference to the facts set
forth below, which Recitals constitute a part of this Agreement;
RECITALS:
WHEREAS, Subdivider is about to present to the City Council of the City of Chula Vista
for approval and recordation, a final subdivision map of a proposed subdivision, to be known as
ROLLING HILLS RANCH, NEIGHBORHOOD 4A - SEDONA (CVT 92-02) pursuant to the
provisions of the Subdivision Map Act of the State of California, and in compliance with the
provisions of Title 18 of the Chula Vista Municipal Code relating to the filing, approval and
recordation of subdivision map; and
WHEREAS, the Code provides that before said map is finally approved by the Council of
the City of Chula Vista, Subdivider must have either installed and completed all of the public
improvements and/or land development work required by the Code to be installed in
subdivisions before final maps of subdivisions are approved by the Council for purpose of
recording in the Office of the County Recorder of San Diego County, or, as an alternative
thereto, Subdivider shall enter into an agreernent with City, secured by an approved
improvement security to insure the performance of said work pursuant to the requirements of
Title 18 of the Chula Vista Municipal Code, agreeing to install and complete, free of liens at
Subdivider's own expense, all of the public improvements and/or land development work
required in said subdivision within a definite period of time prescribed by said Council; and
WHEREAS, Subdivider is willing in consideration of the approval and recordation of
said map by the Council, to enter into this agreement wherein it is provided that Subdivider will
-1-
11-1
install and complete, at Subdivider's own expense, all the public improvement work required by
City in connection with the proposed subdivision and will deliver to City improvement securities
as approved by the City Attorney; and
WHEREAS, a tentative map of said subdivision has heretofore been approved, subject to
certain requirements and conditions, as contained in Resolution No. 16834, approved on the 6th
day of October, 1992 ("Tentative Map Resolution"); and
WHEREAS, complete plans and specifications for the construction, installation and
completion of said public improvement work have been prepared and submitted to the City
Engineer, as shown on Drawing No. 04046 on file in the office of the City Engineer; and
WHEREAS, an estimate of the cost of constructing said public improvements according
to said plans and specifications has been submitted and approved by the City in the amount of
FIFTY FIVE THOUSAND DOLLARS AND NO CENTS ($55,000.00).
NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS
FOLLOWS:
I. Subdivider, for itself and his successors in interest, an obligation the burden of which
encumbers and runs with the land, agrees to comply with all of the terms, conditions and
requirernents of the Tentative Map Resolution; to do and perform or cause to be done and
performed, at its own expense, without cost to City, in a good and workmanlike manner, under
the direction and to the satisfaction and approval of the City Engineer, all of the public
improvement and/or land development work required to be done in and adjoining said
subdivision, including the improvements described in the above Recitals ("Improvement Work");
and win furnish the necessary materials therefore, all in strict conformity and in accordance with '
the plans and specifications, which documents have heretofore been filed in the Office of the
City Engineer and as described in the above Recitals this reference are incorporated herein and
made a part hereof.
2. It is expressly understood and agreed that all monuments have been or will be
installed within thirty (30) days after the completion and acceptance of the Improvement Work,
and that Subdivider has installed or will install temporary street name signs if permanent street
name signs have not been installed.
3. It is expressly understood and agreed that Subdivider will cause all necessary
materials to be furnished and all Improvement Work required under the provisions of this
contract to be done on or before the second anniversary date of Council approval of the
Subdivision Improvement Agreement.
4. It is understood and agreed that Subdivider will perform said Improvement Work as
set forth hereinabove, or that portion of said Improvement Work serving any buildings or
structures ready for occupancy in said subdivision, prior to the issuance of any certificate of
clearance for utility connections for said buildings or structures in said subdivision, and such
certificate shall not be issued until the City Engineer has certified in writing the completion of
said public improvements or the portion thereof serving said building or structures approved by
-2-
1/ -(0
the City; provided, however, that the improvement security shall not be required to cover the
provisions of this paragraph.
5. It is expressly understood and agreed to by Subdivider that, in the performance of said
Improvement Work, Subdivider will conform to and abide by all of the provisions of the
ordinances of the City of ChuIa Vista, and the laws of the State of California applicable to said
work.
6. Subdivider further agrees to furnish and deliver to the City of Chula Vista,
simultaneously with the execution of this agreement, an approved improvement security from a
sufficient surety, whose sufficiency has been approved by the City in the. sum of TWENTY
SEVEN THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($27,500.00) which
security shall guarantee the faithful performance of this contract by Subdivider and is attached
hereto, marked Exhibit "A" and made a part hereof.
7. Subdivider further agrees to furnish and deliver to the City of Chula Vista
simultaneously with the execution of this agreement, an approved improvement security from a
sufficient surety, whose sufficiency has been approved by the City in the sum of TWENTY
SEVEN THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($27,500.00) to secure
the payment of material and labor in connection with the installation of said public
improvernents, which security is attached hereto, marked Exhibit "B" and made a part hereof and
the bond amounts as contained in Exhibit "B", and made a part hereof.
8. Subdivider further agrees to furnish and deliver to the City of Chula Vista,
simultaneously with the execution of this agreement, an approved improvement security from a
sufficient surety, whose sufficiency has been approved by the City in the sum of NINE
THOUSAND THREE HUNDRED DOLLARS AND NO CENTS ($9,300.00) to secure the
installation of monuments, which security is attached hereto, marked Exhibit "c" and made a
part hereof.
9. It is further agreed that if the Improvement Work is not completed within the time
agreed herein, the sums provided by said improvernent securities may be used by City for the
completion of the Improvernent Work within said subdivision in accordance with such
specifications herein contained or referred, or at the option of the City, as are approved by the
City Council at the time of engaging the work to be performed. Upon certification of completion
by the City Engineer and acceptance of said work by City, and after certification by the Director
of Finance that all costs hereof are fully paid, the whole amount, or any part thereof not required
for payment thereof, may be released to Subdivider or its successors in interest, pursuant to the
terms of the improvement security. Subdivider agrees to pay to the City any difference between
the total costs incurred to perform the work, including design and administration of construction
(including a reasonable allocation of overhead), and any proceeds from the improvement'
security.
10. It is also expressly agreed and understood by the parties hereto that in no case will
the City of Chula Vista, or any department, board or officer thereof, be liable for any portion of
the costs and expenses of the work aforesaid, nor shall any officer, his sureties or bondsmen, be
-3-
1/ -/ /
liable for the payment of any sum or sums for said work or any materials furnished therefore,
except to the limits established by the approved improvement security in accordance with the
requirements of the State Subdivision Map Act and the provisions of Title 18 of the Chula Vista
Municipal Code.
II. It is further understood and agreed by Subdivider that any engineering costs
(including plan checking, inspeétion, materials furnished and other incidental expenses) incurred
by City in connection with the approval of the Improvement Work plans and installation of
Improvement Work hereinabove provided for, and the cost of street signs and street trees as
required by City and approved by the City Engineer shall be paid by Subdivider, and that
Subdivider shall deposit, prior to recordation of the Final Map, with City a sum of money
sufficient to cover said cost.
12. It is understood and agreed that until such time as all Improvement Work is ful1y
completed and accepted by City, Subdivider will be responsible for the care, maintenance of, and
any damage to, the streets, alleys, easements, water and sewer lines within the proposed
subdivision. It is further understood and agreed that Subdivider shall guarantee all public
improvements for a period of one year from date of final acceptance and correct any and all
defects or deficiencies arising during said period as a result of the acts or omission of Subdivider,
its agents or ernployees in the performance of this agreement, and that upon acceptance of the
work by City, Subdivider shall grant to City, by appropriate conveyance, the public
improvements constructed pursuant to this agreement; provided, however, that said acceptance
shall not constitute a waiver of defects by City as set forth hereinabove.
13. It is understood and agreed that City, as indenmitee, or any officer or employee
thereof, shall not be liable for any injury to person or property occasioned by reason of the acts
or omissions of Subdivider, its agents or employees, or indenmitee, related to this agreement.
Subdivider further agrees to protect and hold the City, its officers and employees, harmless from
any and all claims, demands, causes of action, liability or loss of any sort, because of or arising
out of acts or omissions of Subdivider, its agents or employees, or indenmitee, related to this
agreernent; provided, however, that the approved improvement security shall not be required to
cover the provisions of this paragraph. Such indenmification 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 the construction of said
subdivision and the public improvernents 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 the
construction and maintenance of drainage systerns. The approval of plans providing for any or
all of these conditions shall not constitute the assumption by City of any responsibility for such
damage or taking, nor shall City, by said approval, be an insurer or surety for the construction of
the subdivision pursuant to said approved improvement plans. The provisions of this paragraph
shall become effective upon the execution of this agreernent and shall rernain in full force and
effect for ten (10) years following the acceptance by'the City of the improvements.
14. Subdivider agrees to defend, indenmify, and hold harmless the City or its agents,
officers, and ernployees from any claim, action, or proceeding against the City or its agents,
-4-
If -/2
officers, or employees to attack, set aside, void, or annul, an approval of the City, advisory
agency, appeal board, or legislative body concerning a subdivision, which action is brought
within the time period provided for in Section 66499.37 of the Government Code of the State of
California.
15. Assignability. Upon request of the Subdivider, any or all on-site duties and
obligations set forth herein may be assigned to Subdivider's successor in interest if the City
Manager in his/her sole discretion determines that such an assignment will not adversely affect
the City's interest. The City Manager in his/her sole discretion may, if such assignment is
requested, permit a substitution of securities by the successor in interest in place and stead of the
original securities described herein so long as such substituted securities meet the criteria for
security as set forth elsewhere in this Agreement. Such assignment will be in a form approved
by the City Attorney.
-5-
/ I -/9
SIGNATURE PAGE ONE OF TWO
SUBDIVISION IMPROVEMENT AGREEMENT
ROLLING HILLS RANCH, NEIGHBORHOOD 4A - SEDONA
(CVT 92-02)
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
the day and year first hereinabove set forth.
THE CITY OF CHULA VISTA
Stephen C. Padilla
Mayor
ATTEST:
Susan Bigelow
City Clerk
Approved as to form by
Ann Moore
City Attorney
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SIGNATURE PAGE TWO OF TWO
SUBDIVISION IMPROVEMENT AGREEMENT
ROLLING HILLS RANCH, NEIGHBORHOOD 4A - SEDONA
(CVT 92-02)
SHEA HOMES LIMITED PARNTERSHIP, a California Limited Partnership
a Corporation, its General Partner
By:
Its: q.1iJhll f!:¡. Vtintl€...¡ A.ç,.ç,is-lw1f~t!.-(I'¿fz:t"'/
By: J¿J 9J.~ -
Its: 7ir; .9,¿J~kr/YllLl}) A~-r;¡6fz:¿'Îf-{PtY¿fz¿ry
(Attach Notary Acknowledgment)
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1/ -(5
LIST OF EXHIBITS
Exhibit "A"
Improvement Security - Faithful Performance
Form: Bond
Amount:
$27,500.00
Exhibit "B"
Improvement Security - Material and Labor:
Form: Bond
Amount:
$27,500.00
Exhibit "C"
Improvement Security - Monuments:
Form: Bond
Amount:
$9,300.00
Securities approved as to form and amount by
City Attorney
Improvement Completion Date: Two (2) years from date of City Council approval of the
Subdivision Improvement Agreement.
J:lEngineer\LANDDEV\ProjectslRolling Hills RanchINeighborhood 4AISIA RHR N4A Map - Final Draft.doc
-8-
/ / -/(,
State of California )
) S.S.
County of San Diego)
On June 1, 2004 before me, DebraE. Young, Notary Public, personally appeared
John B. Vance and Teri Shusterman personally known to me to be the persons whose
names are subscribed to the within instrument and acknowledged to me that they executed
the same in their authorized capacities, and that by their signatures on the instrument the persons,
or the entity upon behalf of which the persons acted, executed the instrument.
WITNESS my hand and official seal.
l ~ DEBRA E. YOUNG ~
- Comm. # 1333971
(/). . NOTARY PUBLIC-CALIFORNIA ( )
San 01'90 County -
MyComm.Expir"O".9,2DOS'"
~¿¡rg
/ / -I 7
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
(fl Ct/rt<~
~n Moore
City Attorney
Dated: {g - 8:-0 i
Approving the Supplemental Subdivision
Improvement Agreement for the completion of
Improvement for Rolling Hills Ranch
Neighborhood 4A - Sedona
1/-/'6
RECORDING REQUEST BY:
City Clerk
WHEN RECORDED MAIL TO:
CITY OF CHULA VISTA
276 Fourth Avenue
Chula Vista, CA 91910
No transfer tax is due as this is a
conveyance to a public agency of
less than a fee interest for which
no cash consideration has been paid
or received.
Developer
Above Space for Recorder's Use
SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT
FOR CHULA VISTA TRACT NO. 92-02,
ROLLING HILLS RANCH NEIGHBORHOOD 4A
(Conditions 2,3,4,27,35,43,54,55,58,59,66,85,89,120,123,124, 125,126,128 of
Resolution 16834 for Chula Vista Tract No. 92-02, Salt Creek Ranch)
This Supplemental Subdivision Improvement Agreement ("Agreement") is made this
_day of , 2004, by and between THE CITY OF CHULA VISTA,
California ("City" or "Grantee" for recording purposes only) and SHEA HOMES LIMITED
PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP ("Developer" or "Grantor"), with
reference to the facts set forth below, which recitals constitute a part of this Agreement:
RECITALS
A.
This Agreement concerns and affects certain real property located in Chula Vista,
California, more particularly described on Exhibit "A" attached hereto and
incorporated herein ("Property"). The Property is referred to as Rolling Hills Ranch
(formerly known as Salt Creek Ranch) Neighborhood 4A, Chula Vista Tract No. 92-
02. For purposes of this Agreement the term "Project" shall mean "Property".
B.
Developer is the owner of the Property.
C.
The City has adopted Resolution 16834 ("Resolution") pursuant to which it has
approved the Salt Creek Tentative Subdivision Map subject to certain conditions as
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more particularly described in the Resolution.
D.
City is willing, on the premises, security, terms and conditions herein contained to
approve the Final Map for which Developer has applied as being in substantial
conformance with the Tentative Subdivision Map described in this "B" map
Agreement.
E.
The Project has been reviewed for consistency with the following environmental
documents: FEIR-89-03; FSEIR-91-03 (hereinafter referred to as the Project EIRs).
The Project will be developed in accordance with these EIRs and all mitigation
measures set forth in the respective Mitigation Monitoring and Reporting Programs
(MMRPs).
NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein
contained, the parties agree as set forth below.
1. Agreement Applicable to Subsequent Owners.
1.1 Agreement Binding Upon Successors. This Agreement shall be binding
upon and inure to the benefit of the successors, assigns and interests of the parties
as to any or all of the Property as described in Exhibit "A" until released by the
mutual consent of the parties.
1.2 Agreement Runs with the Land. The burden of the covenants contained in
this Agreement ("Burden") is for the benefit of the Property and the City, its
successors and assigns and any successor in interest thereto. City is deemed the
beneficiary of such covenants for and in its own right and for the purposes of
protecting the interest of the community and other parties public or private, in whose
favor and for whose benefit of such covenants running with the land have been
provided without regard to whether City has been, remained or are owners of any
particular land or interest therein. If such covenants are breached, the City shall
have the right to exercise all rights and remedies and to maintain any actions or
suits at law or in equity or other proper proceedings to enforce the curing of such
reach to which it or any other beneficiaries of this agreement and the covenants
may be entitled.
a. Developer Release on Guest Builder Assignments. If Developer
assigns any portion of the Project to a Guest Builder, Developer may request to be
released from Developer's obligations under this Agreement, that are expressly
assumed by the Guest Builder, provided Developer obtains the prior written consent
of the City to such release. Such assignment to the Guest Builder shall, however, be
subject to this Agreement and the Burden of this Agreement shall remain a covenant
running with the land. The City shall not withhold its consent to any such request for a
release so long as the assignee acknowledges that the Burden ofthe Agreement runs
with the land, assumes the obligations of the Developer under this Agreement, and
demonstrates, to the satisfaction of the City, its ability to perform its obligations under
this Agreement as it relates to the portion of the Project which is being acquired by the
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Assignee.
b. Partial Release of Developer's Assignees. If Developer assigns any
portion of the Project subject to the Burden of this Agreement, upon request by the
Developer or its assignee, the City shall release the assignee of the Burden of this
Agreement as to such assigned portion if such portion has complied with the
requirements of this Agreement to the satisfaction of the City and such partial
release will not, in the opinion of the City, jeopardize the likelihood that the
remainder of the Burden will not be completed.
c. Release of Individual Lots, Upon the occurrence of any of the following
events, the Developer shall, upon receipt of the prior written consent of the City
Manager (or Manager's designee), have the right to release any lot(s) from
Developer's obligation under this Agreement:
i.
The execution of a purchase agreement for the sale of a
residential lot to a buyer of an individual housing unit;
The conveyance of a lot to a Homeowner's Association;
The conveyance of a school site as identified in the SPA
Plan to a school district;
ii.
Iii.
The City shall not withhold its consent to such release so long as the City finds in
good faith that such release will not jeopardize the City's assurance that the
obligations set forth in this Agreement will be performed. At the request of the
Developer, the City Manager (or Manager's designee) shall execute an
instrument drafted by Developer in a recordable form acceptable to the City
Manager (or Manager's designee), which confirms the release of such lot or
parcel from the encumbrance of this Agreement.
Notwithstanding the foregoing, at the close of an individual homeowner's escrow
on any lot or parcel encumbered by this Agreement, such lot or parcel shall be
automatically released from the encumbrance hereof.
2. Condition No.2 of Resolution 16834 (Public Facilities Financing Plan). In
satisfaction of Condition No.2 of Resolution 16834, the Developer agrees to install public
facilities in accordance with the Public Facilities Financing Plan as amended by Resolution
2000-190 on June 13, 2000 or as required by the City Engineer to meet threshold
standards adopted by the City are constructed shall correspond to any future East Chula
Vista Transportation Phasing Plan as may be amended in accordance with the financing
study adopted by the City. The Developer further acknowledges that the City Engineer and
the Planning Director may, at their discretion, modify the sequence of improvement
construction should conditions change to warrant such a revision.
3. Condition No.3 of Resolution 16834 as (Implement Mitigation Measures). In
satisfaction of Condition No.3 of Resolution 16834, the Developer shall diligently
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implement, or cause the implementation of all mitigation measures pertaining to the Project
identified in the Final Subsequent Environmental Impact Report, (SEIR #91-03). Developer
agrees that any such measures not satisfied by a specific condition or by the project design
shall be implemented to the satisfaction of the Director of Planning and Building.
Developer acknowledges that Mitigation Measures shall be monitored via the Mitigation
Monitoring Program approved in conjunction with the FEIR, SEIR, and MND and any
amendments thereto. Developer further acknowledges that modification of the sequence
of mitigation shall be at the discretion of the Director of Planning and Building should
changes in the circumstances warrant $uch revision.
4. Condition No.4 of Resolution 16834 (General Preliminary). In satisfaction of
Condition No.4 of Resolution 16834, unless otherwise conditioned, the Developer shall
comply with, remain in compliance with, and implement, the terms, conditions and
provisions of 1) the Salt Creek Ranch General Development Plan (GDP) approved by City
Council Resolution 15875 on September 25, 1990 and amended by City Council
Resolution 2003-198 on May 13, 2003; 2) Salt Creek Ranch Sectional Planning Area
(SPA) Plan approved by the City Council Resolution No. 16555 on March 24, 1992 and
amended by City Council Resolution 2003-386 on August 26, 2003; 3) the Rolling Hills
Ranch Planned Community District Regulations and Land Use Map approved by City
Council Ordinance No. 2499 on April 7, 1992 and amended by Ordinance No. 2932 on
September 16, 2003; 4) Public Facilities Financing Plan approved by City Council
Resolution 16555 on March 24,1992 and amended by Resolution 2000-190 on June 13,
2000; 5) Tentative Subdivision Map for Salt Creek Ranch, Chula Vista Tract 92-02
previously approved by City Council Resolution Number 16834 on October 6, 1992 and
amended by City Council Resolution 2003-199 on May 13, 2003; 6) Agreement for
Monitoring of Building Permits approved by City Council Resolution 2003-166 on April 15,
2003; 7) the Master Plan of Reclaimed Water; 8) Urban Runoff Report; 9) Habitat
Enhancement Plan; 10) Master Plan of Sewage; 11) Water Conservation Plan; 12) the Air
Quality Improvement Plan Design Guidelines; and 13) the Design Review Letter of
Approval for the Sedona project in Rolling Hills Ranch Neighborhood 4A approved on
January 26, 2004 (DRC 04-17) and accompanying Design Review Permit Revised Site
Plan dated March 12, 2004 as are applicable to the property which is the subject matter of
the Tentative Map, prior to approval of the Final Maps, or shall have entered into an
agreement with the City, providing the City with such security (including recordation of
covenants running with the land) and implementation procedures as the City may require,
assuring that, after approval of the Final Map, the Developer shall continue to comply with,
remain in compliance with, and implement such Plans. Developer hereby agrees to waive
any claim that the adoption of a final Water Conservation Plan or Air Quality Improvement
Plan constitutes an improper subsequent imposition of the condition.
5. Condition No. 27 of Resolution 16834 (Private Streets). In satisfaction of
Condition No. 27 of Resolution 16834, the Developer shall construct private streets in
accordance with the standards contained in the Subdivision Manual and street design
standards unless otherwise approved by the City Engineer. Private street cross-sections
shall conform to those shown on the tentative map for curb-to-curb width and right of way
width.
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11-22.
6. Condition No. 35 of Resolution 16834 (List of CutlFiIIlTransition Lots). In
satisfaction of Condition No. 35 of Resolution 16834, the Developer agrees to submit a list
of proposed lots indicating whether the structure will be located on fill, cut, or a transition
between the two situations prior to issuance of the first building permit in Neighborhood 4A.
7. Condition No. 43 of Resolution 16834 (Urban Runoff), In satisfaction of Condition
No. 43 of Resolution 16834, the Developer agrees to design the storm drains and other
drainage facilities to include BMP's to minimize non-point source pollution, satisfactory to
the City Engineer and the City of San Diego Water Utilities Director. Developer further
agrees that:
a.
The Development shall comply with all applicable regulations established by
the United States Environmental Protection Agency (USEPA), as set forth in
the National Pollutant Discharge Elimination System (NPDES), permit
requirements for urban runoff and storm water discharge, the Clean Water
Act, and any regulations adopted by the City of Chula Vista, pursuant to the
NPDES regulations or requirements. Further, the Developer shall file a
Notice of Intent with the State Water Resources Control Board to obtain
coverage under the NPDES General Permit for Storm Water Discharges
Associated with Construction Activity and shall implement a Storm Water
Pollution Prevention Plan (SWPPP) concurrent with the commencement of
grading activities. The SWPPP shall include both construction and post
construction pollution prevention and pollution control measures and shall
identify funding mechanisms for post construction control measures.
b.
The Developer shall comply with all the provisions of the NPDES Permit
during and after all phases of the development process, including, but not
limited to, mass grading, rough grading, construction of street and
landscaping improvements, and construction of dwelling units.
c.
Developer shall not protest the formation of a facilities benefit district or any
other funding mechanism approved by the City to finance the operation,
maintenance, inspection, and monitoring of NPDES facilities. This
agreement to not protest shall not be deemed a waiver of the right to
challenge the amount of any assessment, which may be imposed due to the
addition of these improvements and shall not interfere with the right of any
person to vote in a secret ballot election. The above noted agreement shall
run with the entire land contained within the Project.
d.
At such time as required by the City Engineer for the Project, the Developer
shall submit and obtain approval from the City Engineer of a maintenance
program for the proposed post-construction BMP's. The maintenance
program shall include, but not be limited to: 1) a manual describing the
maintenance activities of said facilities, 2) an estimate of the cost of such
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maintenance schedule and activities, and 3) a funding mechanism for
financing the maintenance program. In addition, the Developer shall enter
into a Maintenance Agreement with the City to ensure the maintenance and
operation of said facilities.
e.
Prior to approval of each grading, construction, and building permits for the
project, the Developer shall demonstrate to the satisfaction of the City
Engineer compliance with all of the applicable provisions of the municipal
code and the adopted City of Chula Vista's Storm Water Management
Standards Requirements Manual, which includes the Local SUSMP. The
Developer shall incorporate into the project planning and design effective
post-construction BMP's and provide all necessary studies and reports
demonstrating compliance with the applicable regulations and standards.
BMP's shall be identified and implemented that specifically prevent pollution
of storm drain systems to the Maximum Extent Practicable (MEP) from
certain project feature, land use, areas and activities.
f.
The Developer shall incorporate in the Project design, water quality and
watershed protection principles and all post construction Best Management
Practices (BMP's) selected for the Project, in compliance with the NPDES
Permit.
8. Condition No. 54 of Resolution 16834 (Park-and Ride Facility). In satisfaction of
Condition No. 54 of Resolution 16834 Developer agrees to enter into and execute an
agreement to fund the project's fair share of a park-and-ride facility to be located in the
vicinity of East H Street and the SR-125 interchange.
9. Condition No. 55 of Resolution 16834 (Threshold and Withholding of Building
Permits). In satisfaction of Condition No. 55 of Resolution 2003-199 Developer agrees to
the following
a.
That the City may withhold building permits for the subject subdivision if any
one of the following occur:
i. Regional development threshold limit set by the Chula Vista
Transportation Phasing Plan, as amended from time to time, have
been reached or in order to have the Project comply with the
Growth Management Program, as may be amended from time to
time.
ii. Traffic volumes, levels of service, public utilities and/or services
either exceed the adopted City threshold standards or fail to
comply with the then effective Growth Management Ordinance
and Growth Management Program and any amendments thereto.
Public utilities shall include, but not be limited to, air quality,
drainage, sewer and water.
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iii. The required public facilities, as identified in the PFFP or as
amended or otherwise conditioned have been completed or
constructed to the satisfaction of the City. The Developer may
propose changes in the timing and sequencing of development
and the construction of improvements affected. In such case, the
PFFP may be amended as approved by the City's Director of
Planning and building and the Public Works Director. Developer
agrees that the City may withhold building permits for any of the
phases of development identified in the Public Facilities Financing
Plan (PFFP) for the Project if the required public facilities, as
identified in the PFFP have not been completed.
b.
That the City may withhold the issuance of building permits for the Project,
should the Developer be determined by the City to be in breach of any of the
terms of the tentative Map Conditions or any Supplemental Agreement. The
City shall provide the Developer of notice of such determination and allow
the Developer reasonable time to cure said breach.
10. Condition No. 58 of Resolution 16834 (Indemnification). In satisfaction of
Condition No. 58 of Resolution 16834, the Developer agrees to defend, indemnify and hold
harmless the City and its agents, officers and employees, from any claim, action or
proceeding against the City, or its agents, officers or employees to attack, set aside, void or
annul any approval by the City, including approval by its Planning Commission, City
Council or any approval by its agents, officers, or employees with regard to this subdivision
provided the City promptly notifies the subdivider of any claim, action or proceeding and on
the further condition that the City fully cooperates in the defense.
11. Condition No. 59 of Resolution 16834 (Erosion), In satisfaction of Condition No.
59 of Resolution 16834, the Developer agrees to hold the City harmless from any liability
for erosion, siltation of increase flow of drainage resulting from this Project.
12. Condition No. 66 of Resolution 16834 (Cable Television Companies). In
satisfaction of Condition No. 66 of Resolution 16834, the Developer agrees to permit all
cable television companies franchised by the City of Chula Vista equal opportunity to place
conduit and provide cable television service for each lot or unit within the final map areas.
Developerfurtheragrees to grant, by license or easement, and forthe benefit of, and to be
enforceable by, the City of Chula Vista, conditional access to cable television conduit within
the properties situated within the final map only to those cable television companies
franchised by the City of Chula Vista, the condition of such grant being that: (a) such
access is coordinated with Developer's construction schedule so that it does not delay or
impede Developer's construction schedule and does not require the trenches to be
reopened to accommodate that placement of such conduits; and (b) any such cable
company is and remains in compliance with, and promises to remain in compliance with
the terms and conditions of the franchise and with all other rules, regulations, ordinances
and procedures regulating and affecting the operation of cable television companies as
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same may have been, or may from time to time be, issued by the City of Chula Vista.
Developer hereby conveys to the City of Chula Vista the authority to enforce said covenant
by such remedies as the City determines appropriate, including revocation of said grant
upon determination by the City of Chula Vista that they have violated the conditions of
grant.
13. Condition No. 85 of Resolution 16834 (Landscaping). In partial satisfaction of
Condition No. 85 of Resolution 16834, the Developer agrees to construct all improvements
shown on the landscape and irrigation plans as described in Exhibit "B" .
14. Condition No. 89 of Resolution 16834 (Fire Hydrants). In satisfaction of Condition
No. 89 of Resolution 16834, the Developer agrees to install fire hydrants every 500 ft. for
single family residential and every 300 ft. for multi-family dwellings and to Install and make
operable the hydrants prior to delivery of combustible building materials.
15. Condition No. 120 of Resolution 16834 (Bench Marks). In satisfaction of Condition
No. 120 of Resolution 16834, the Developer agrees to payoff all existing deficit accounts
associated with the processing of this application to the satisfaction of the Director of
Planning and to provide permanent City bench marks tied to the City System at the
following locations:
1. Mt. Miguel Road/Mackenzie Creek Road
2. East "H" StreeUBoth Subdivision Boundaries
3. East "H" StreeUHunte Parkway
4. Otay Lakes Road/Rutgers
16. Condition No. 120 of Resolution 16834 (Municipal Code, Map Act, Subdivision
Ordinance, and Subdivision Manual Compliance). In satisfaction of Condition No. 120
of Resolution 16834, the Developer agrees to comply with all applicable sections of the
Chula Vista Municipal Code. Preparation of the Final Map and all plans shall be in
accordance with the provisions of the Subdivision Map Act and the City of Chula Vista
Subdivision Ordinance and Subdivision Manual.
17. Condition No. 123 of Resolution 16834 (Fire Sprinklers). In satisfaction of
Condition No. 123 of Resolution 16834, the Developer agrees to provide some lots with
residential fire sprinkler systems due to access requirements as determined by the Fire
Marshal. Developer further agrees that in multi-family dwellings, if a sprinkler system is
required for one building, all buildings in the Project shall be sprinklered.
18. Condition No. 124 of Resolution 16834 (Planned Community District
Regulations). In satisfaction of Condition No. 124 of Resolution 16834, the Developer
agrees that all proposed development shall be consistent with the Salt Creek Ranch SPA
Planned Community District Regulations, subject to the approval of the Director of
Planning.
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19. Condition No, 125 of Resolution 16834 (Energy Conservation). In satisfaction of
Condition No. 125 of Resolution 16834, the Developer agrees to comply with Title 24 and
any other energy conservation ordinances and policies in effect at the time construction
occurs on the property in conformance with the Tentative Map.
20. Condition No. 126 of Resolution 16834 (Urban Runoff). In satisfaction of
Condition No. 126 of Resolution 16834, the Developer agrees to comply with all applicable
regulations established by the United States Environmental Protection Agency (USEPA) as
set forth in the National Pollutant Discharge Elimination System (N.P.D.E.S.) permit
requirements for urban runoff and storm water discharge and any regulations adopted by
the City of Chula Vista pursuant to the N.P.D.E.S. regulations or requirements.
21. Condition No. 128 of Resolution 16834 (Fees). In satisfaction of Condition No. 128
of Resolution 16834, the Developer agrees to pay all applicable fees in accordance with
the City Code and Council Policy, including, but not limited to, the following:
Prior to issuance of the first building permit:
1. The Transportation and Public Facilities Development Impact Fees.
2. Signal Participation Fees.
3. All applicable sewer fees, including but not limited to sewer
connection fees.
SR-125 impact fee (as applicable).
Salt Creek Sewer Basin Fee.
Sewer Pump Station DIF.
4.
5.
6.
22. Satisfaction of Conditions. City agrees that the execution of this Agreement
constitutes satisfaction or partial satisfaction of Developer's obligation for this Project of
Conditions 2,3,4,27,35,43,54,55,58,59,66,85,89,120,123,124, 125, 126, 128 of
Resolution 16834 for Chula Vista Tract No. 92-02, Salt Creek Ranch.
23. Unfulfilled Conditions. Developer hereby agrees, unless otherwise conditioned,
that Developer shall comply with all unfulfilled conditions of approval of the Salt Creek
Ranch, Chula Vista Tract No. 92-02 Tentative Map (adopted by Resolution 16834) and
shall remain in compliance with and implement the terms, conditions and provisions of the
Resolutions.
24. Previous Agreements. The Developer acknowledges that nothing in this Agreement
shall supersede, nullify or otherwise negatively impact the terms of Previous Agreements
as they apply to the Project including the Agreement for Monitoring of Building Permits as
approved by Resolution 2003-166.
25. Recording. This Agreement, or an abstract hereof prepared by either or both parties,
may be recorded by either party.
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26. Assignability. Upon request of the Developer, any or all on-site duties and
obligations set forth herein may be assigned to subdivider's successor in interest if the City
Manager in his/her sole discretion determines that such an assignment will not adversely
affect the City's interest. The City Manager in his/her sole discretion may, if such
assignment is requested, permit a substitution of securities by the successor in interest in
place and stead of the original securities described herein, so long as such substituted
securities meet the criteria for security as set forth elsewhere in this Agreement. Such
assignment will be in a form approved by the City Attorney.
27. Building Permits. Developer understands and agrees thatthe City may withhold the
issuance of building permits for the Project, should the Developer be determined by the
City to be in breach of any of the terms of this Agreement. The City shall provide the
Developer of notice of such determination and allow the Developer with reasonable time to
cure said breach.
28. Miscellaneous.
a.
Notices. Unless otherwise provided in this Agreement or by law, any and all
notices required or permitted by this Agreement or by law to be served on or
delivered to either party shall be in writing and shall be deemed duly served,
delivered, and received when personally delivered to the party to whom it is
directed, or in lieu thereof, when three (3) business days have elapsed
following deposit in the U.S. mail, certified or registered mail, return receipt
requested, first-class postage prepaid, addressed tothe address indicated in
this Agreement. A party may change such address for the purpose of this
paragraph by giving written notice of such change to the other party.
CITY OF CHULA VISTA
276 Fourth Avenue
Chula Vista, CA 91910
Attn: City Engineer
Developer:
Shea Homes
10650 Treena Street, Ste. 210
San Diego, California 92131
Attn: Ryan Martin
A party may change such address for the purpose of this paragraph by giving
written notice of such change to the other party in the manner provided in this
paragraph.
b.
Captions. Captions in this Agreement are inserted for convenience of
reference and do not define, describe or limit the scope or intent of this
Agreement or any of its terms.
10
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c.
Entire Agreement. This Agreement contains the entire agreement between
the parties regarding the subject matter hereof. Any prior oral or written
representations, agreements, understandings, and/or statements shall be of
no force and effect. This Agreement is not intended to supersede or amend
any other agreement between the parties unless expressly noted.
d.
Preparation of Agreement. No inference, assumption or presumption shall
be drawn from the fact that a party or his attorney prepared and/or drafted
this Agreement. It shall be conclusively presumed that both parties
participated equally in the preparation and/or drafting this Agreement.
e.
Recitals; Exhibits. Any recitals set forth above and exhibits referenced
herein are incorporated by reference into this Agreement.
f.
Attorneys' Fees. If either party commences litigation for the judicial
interpretation, reformation, enforcement or rescission hereof, the prevailing
party will be entitled to a judgment against the other for an amount equal to
reasonable attomey's fees and court costs incurred. The "prevailing party"
shall be deemed to be the party who is awarded substantially the relief
sought.
(NEXT PAGE IS SIGNATURE PAGE)
11
/1-2-1
SIGNATURE PAGE TO
SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT
SHEA HOMES LIMITED PARTNERSHIP
Neighborhood 4A
CHULA VISTA TRACT NO. 92-02
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed the day and year first hereinabove set forth.
THE CITY OF CHULA VISTA
Shea Homes Limited Partnership, A
CALIFORNIA LIMITED PARNERSHIP
By:
Stephen C. Padilla
Mayor of the City of Chula Vista
ATTEST
By J.F. Shea Co., Inc.,
, N."ds co<porn"'~
118+'.' f,
By: - J 1 -
Its: ~- . ..¿~~~ý
Ryan /v1áriit1 /
Susan Bigelow, City Clerk
By: J.u<'~
Its: -P&;;Y. <;;-~.
Ie r i Shl./S kr /"flaIl
Approved as to form by
Ann Moore
City Attorney
(Attach Notary Acknowledgment)
12
/ / ~30
List of Exhibits
Exhibit "A" - Legal Description of Rolling Hills Ranch Neighborhood 4A
Exhibit "B" - Bonding
13
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EXHIBIT "A"
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA,
COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS:
PARCEL - OF MAP CHULA VISTA TRACT NO. 92-02, ROLLING
HILLS RANCH NEIGHBORHOOD 4A IN THE CITY OF CHULA VISTA, COUNTY OF SAN
DIEGO, STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER
OF SAN DIEGO COUNTY ON AS INSTRUMENT NO.
14
/1-32.
EXHIBIT "B"
LANDSCAPE AND IRRIGATION BOND
Landscape and
Irrigation Bond
$903,960.00
08741796
Chula Vista
Drawing Nos.
04035-01 to
04035-42
J:IENGINEERILANDDEVlPRQJECTSIROLLING HILLS RANCHINEIG-IBORHOOD 4AISSIA RHR N4A MAP - FINAL ORAFT.DŒ
15
/1-33
State of California )
) S.S.
County of San Diego)
On May 27,2004 before me, Debra E. Young, Notary Public, personally appeared
Ryan Martin and Teri Shusterman personally known to me to be the persons whose
names are subscribed to the within instrument and acknowledged to me that they executed
the same in their authorized capacities, and that by their signatures on the instrument the persons,
or the entity upon behalf of which the persons acted, executed the instrument.
WITNESS my hand and official seal.
DEBRA E. YOUNG (
Comm.#1333971 ( )
. NOTARY PUBLIC-CALIFORNIA
5an Diego County -
MvComm. Expires Oec.9,2005'"
~£~
/ /-3Lf
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ORDERING THE SUMMARY VACATION OF
THE IRREVOCABLE OFFER OF DEDICATION OF PARCEL
"3" FOR PUBLIC OPEN SPACE AND OTHER PUBLIC
PURPOSES PER PARCEL MAP NO. 18595.
WHEREAS, an Irrevocable Offer of Dedication in Fee Interest of Parcel "3" was
acknowledged by the City of Chula Vista for open space and other public purposes as shown on
Map No. 18595, filed in the Office of the County Recorder of San Diego County on December
7,2000; and,
WHEREAS, the boundary of Parcel 3 of Map No. 18595 is reconfigured and named Lot
"A" on the Subdivision Map under consideration by Council tonight with a new Irrevocable
Offer of Dedication in Fee Interest offered to the City for Lot "A" of said map; and,
WHEREAS, the Irrevocable Offer of Dedication in Fee Interest offered to the City for
Parcel"3" on Map 18595 has been superceded and is no longer needed; and,
WHEREAS, in accordance with Chapter 4, Section 8335 of the California Streets and
Highways Code, the vacation of Parcel "3" may be performed summarily through adoption of a
resolution ordering said summary vacation; and
WHEREAS, in accordance with Section 7050 of the California Government Code, such
offer of dedication may be terminated and the right to accept such offer abandoned; and
WHEREAS, from and after the date this Resolution ordering summary vacation, the
Parcel "3" vacated as described herein, no longer constitute an open space or other public
purposes lot; and
WHEREAS, City Council hereby finds that the Irrevocable Offer of Dedication in Fee
Interest of Parcel "3" for open space and other public purposes, all as shown on Rolling Hills
Ranch Neighborhood 4A in the City of Chula Vista, State of California, according to map
thereof No. 18595 has been superceded by a subsequent Irrevocable Offer of Dedication and that
all public easements on said lots will remain in full force and effect.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby orders the summary vacation of the Irrevocable Offer of Dedication of Parcel "3",
according to map thereof No. 18595, attached hereto and incorporated herein by reference as if
set forth in full.
/ / -35
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to record this
resolution of vacation in the office of the San Diego County Recorder.
Presented by
Approved as to form by
!~~~ (~(J
City Attorney
Jack Griffin
Director of General Services
nEngineeclLANDOEVIProjectslRolling Hills RanchlNeighborhood 4AlRESO N4A rOD Vacation 05-28-O4.doc
11-31;;
Recording Requested by and
Please Return to:
City Clerk
City of Chula Vista
P.O. Box 1087
Chula Vista, CA 91912
This Instrument Benefits City Only.
No fee is re uired.
This Space for Recorder's Use Only
APN(s) 595-030-37,39
C,V, File No, RH-243F
IRREVOCABLE OFFER
OF DEDICATION OF FEE INTEREST
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
SHEA HOMES LIMITED PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP AND
ROLLING HILLS RANCH COMMUNITY ASSOCIATION, A CALIFORNIA NON-PROFIT
MUTUAL BENEFIT CORPORATION, AS OWNERS OF LOT "A".
represents that, as the owner(s) of herein-described real property, (in the case of multiple
owners, collectively referred to as "Grantor), Grantor hereby makes an Irrevocable Offer of
Dedication of fee interest, pursuant to Section 7050 of the Government Code of the State of
California, to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the hereinafter
described real property for the following public purpose:
OPEN SPACE AND OTHER PUBLIC PURPOSES
The real property referred to above is situated in the City of Chula Vista, County of San Diego,
State of California and is more particularly described as follows:
LOT "A" OF CHULA VISTA TRACT NO. 92-02, ROLLING HILLS RANCH, NEIGHBORHOOD
4A, "SEDONA" PER MAP NO. RECORDED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY.
(Contains 3.491 Acres, more or less)
This Offer of Dedication is made pursuant to Section 7050 of Government Code of the State of
California and may be accepted at any time by the City of Chula Vista.
This Offer of Dedication of fee interest shall be irrevocable and shall be binding on the Grantor,
its heirs, executors, administrators, successors and assigns.
/1-:::37
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.,61.'..
SIGNATURE PAGE
Signed this
day of
,20
Grantor Signatures:
SHEA HOMES LIMITED PARTNERSHIP, A CALIFORNIA PARTNERSHIP, as owner:
By: J.F. Shea Co., Inc., a Nevada Corporation, It's General Partner:
By:
Name:
Title:
By:
Name:
Title:
ROLLING HILLS RANCH COMMUNITY ASSOCIATION, A CALIFORNIA NON-PROFIT MUTUAL
BENEFIT CORPORATION, as owner:
By:
Name:
Title:
By:
Name:
Title:
/ / -3'iJ
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State of
County of
(Notary Acknowledgement Required for Each Signatory)
)
On
, before me,
, Notary Public, personally appeared
personally known to me or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/shelthey executed the same in his/her/their authorized capacity(ies), and that
by his/herltheir signatures on the instrument, the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature
State of
County of
(Notary Acknowledgement Required for Each Signatory)
)
, before me,
, Notary Public, personally appeared
personally known to me or proved to me on the basis of satisfactory evidence) to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that
by his/her/their signatures on the instrument, the person(s), or the entity upon behalf of
which the person(s) acted, executed the instrument.
On
WITNESS my hand and official seal.
Signature
/1-39
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~01~95
This is to certify that the interest in real property offered herein to the City of Chula Vista, a
governmental agency, is hereby acknowledged by the undersigned, City Clerk, on behalf of the
Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of the Chula
Vista City Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation
thereof by its duly authorized officer.
SUSAN BIGELOW
CITY CLERK
By:
Dated:
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CITY COUNCIL AGENDA STATEMENT
ITEM NO.:
MEETING DATE:
('2-
6/15/04
ITEM TITLE:
CONSIDERATION OF AN AFFORDABLE HOUSING REGULATORY
AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TRIMARK
PACIFIC-MAR BRISA, LLC FOR THE SAN MIGUEL RANCH
COMMUNITY
RESOLUTION APPROVING THE AFFORDABLE HOUSING
REGULATORY AGREEMENT BETWEEN THE CITY OF CHULA VISTA
AND TRIMARK PACIFIC-MAR BRISA, LLC FOR THE SAN MIGUEL
RANCH COMMUNITY AND AUTHORIZING THE MAYOR TO
EXECUTE THE AGREEMENT
COMMUNITY DEVELOPMENT DIRECTOR
SUBMITTED BY:
REVIEWED BY:
CITY MANAGER
~íJ
4/5T"S VOTE: YES D NO 0
BACKGROUND
On August 7,2001, the City and NNP-TriMark San Miguel Ranch, LLC ("Developer") executed an
Affordable Housing Agreement for San Miguel Ranch (the "Project"). The Affordable Housing
Agreement ("Agreement") stated that pursuant to the City of Chula Vista Housing Element and the
establishment of the City's "Affordable Housing Policy", the Developer is required to provide 10% of
each housing development of 50 or more units to be offordable to low and moderate income
households, with ot least one half of those units (5% of project totol units) being designoted for low
income households.
On October 21, 2003, the City Council accepted 0 report regarding the efforts of San Miguel Ranch
to satisfy their affordable housing requirements through the development of a 120-unit for-sale
project. At this time, TriMark Pocific-Mar Brisa, LLC ("Builder") desires to satisfy the affordoble
housing obligotion through a for-sale project, the details of which are contained within the
Affordoble Housing Regulotory Agreement ("Regulotory Agreement") contemplated herein.
RECOMMENDATION
That Council adopt the resolution approving the Affordable Housing Regulatory Agreement
between the City and TriMark Pacific-Mor Brisa, LLC for San Miguel Ranch and authorizing the
Mayor to execute such Agreement on behalf of the City.
/2-/
PAGE 2, ITEM NO.:
MEETING DATE:
/2-
6/15/04
BOARDS/COMMISSIONS RECOMMENDATION
The Design Review Committee provided comments ot one informal review of the Project
conducted on November 17, 2003. On January 12, 2004, the DRC considered the application
to allow the construction of 120 units of for-sole housing and unanimously recommended
adoption of DRC-04-07.
DISCUSSION
Under the City's Bolonced Communities Policy of the Housing Element, the Developer hos an
obligation to provide 10 percent of those new residential housing units within the Project as
affordable ta low ond moderate-income families (5% low and 5% moderate). Bosed on units
constructed, final maps ond tentotive maps for San Miguel Ranch to date, a total of 1,394
residential housing units ore onticipated. Therefore, the Developer has an obligation to provide
70 units affordoble to low income households and 70 offordoble to moderate income
households within the Project. The Developer has already provided 25 moderote-incame units
within the existing San Miguel Ronch community. In October 2002, the Developer confirmed that
Neighborhood "A" would be the site for the remaining offord able housing. The site ollaws for a
moximum of 129 units. The Builder is proposing 0 120 unit for sole project, which would provide
70 low-income offordoble units, 45 moderate-income units and 5 market rote units.
The development will include 70 low-income units, which will contoin 0 mix of bedroom sizes
including 30 two-bedroom units, 30 three-bedroom units and 10 four-bedroom units. The 45
moderate income units will include 10 two bedroom units, 10 three bedroom units and 25 four
bedroom units, and the remaining four bedroom units will be sold at market rate. The
development of four bedroom units wos based upon the stated needs within the Housing Element
and the City's desire to assist larger families. This will be the first affordable for-sale project that
includes four bedroom units.
Affordable HousinCl ReClulatorv AClreement
The Agreement detoils the occord between the City ond Builder regarding the development of the
proposed affordable for sale units ond the satisfaction of the Developer's remaining affordable
housing obligation. The Agreement includes detoiled informotion regarding the Builder's
guidelines and requirements for the development of the project and employs the recently
opproved Affordoble For Sale Housing Policy os the basis for the Agreement.
The Affordable For Sale Housing Policy consists of a number of key principles that govern all such
developments. The two primary components of the development guidelines include the
establishment of a Second Trust Deed that is extended to the Homebuyer in favor of the City and
an equity share system, implemented over a 45-yeor period, that is based upon the Homebuyer's
length of occupancy. The Policy olso requires thot 011 "affordable" units will be sold to buyers
meeting both the income-based ond cost-based measures of affordability, and includes a
number of underwriting criterio as well as Buyer Selection Criterio. In addition to the Buyer
/2""2-
PAGE 3, ITEM NO.:
MEETING DATE:
12-
6/15/04
Selection Criteria there will also be additional consideration given to larger families for the larger
units as described within the Affordable For Sale Housing Policy.
The primory prerequisite for low-income buyers is that they be income qualified, earning no more
than 80% of the Area Median Income. Please refer to the chart below for maximum income
figures.
Household Size
1 erson
2 eo Ie
3 eo Ie
4 eo Ie
Annual Income
$38,350
$43,850
$49,300
$54,800
Although the Affordable For Sale Housing Policy is the foundation for this Agreement, there are
additional requirements outlined within the Regulatory Agreement thot are specific to this
development including the condition thot buyers must meet the federal definition of a First-time
homebuyer, defined as an individual who has not owned property within the last three years.
This is consistent with the objective of developing affordable homeownership opportunities for
low-income buyers.
This project will also be the first affordable for-sale development that requires that all moderote-
income (up to 140% of AMI) buyers be income qualified. Please refer to maximum income chort
below.
Household Size
Annual Income at
140% of AMI
$62,150
$71,000
$79,900
$88,750
Previously, the sales price was based upon moderate-income levels but buyers could qualify at any
income level, including those who exceeded what is defined as moderate income. Generally, the
moderate-income requirement has been satisfied through market-rate units, but due to the elevated
reol estate market moderate-income level buyers have had a more difficult time in qualifying for
purchose of a home. Therefore, the Builder and stoff have agreed to income qualify both low-
income and moderate-income buyers.
CEQA Comøliance
The Affordoble Housing Agreement for San Miguel Ranch has been reviewed for compliance with
CEQA. The Agreement is 0 mechanism for implementation of affordable housing within the
prescribed densities ond maximum unit count of the San Miguel Ronch General Development Pion
and SPA plan.
12-3
PAGE 4, ITEM NO.:
MEETING DATE:
/2-
6/15/04
The construction of the 120-unit for-sale development would not result in the construction of ony
housing beyond that anticipoted in the GDP ond SPA plans and the environmental review
documents previously certified for those plans. Therefore, no additionol CEQA action is necessary.
FISCAL IMPACT
The Developer has paid 011 costs associated with the processing of the Affordable Housing
Agreement and Affordable Housing Regulatory Agreement.
Upon sole, transfer, refinance, or change in title of the offordable unit, the City will receive
repayment of the silent second loan and any additional equity share. Based on the formula
provided in the City's Affordable For-Sale Housing Policy, the silent second loan amount is the
difference between the morket rate price and the affordable price, estoblished at the time of sale
by the Builder. No expenditure or allocation of City funds is required; therefore, there is no fiscal
impact.
AnACHMENTS
1. Locator Mop .
2. Affordable Housing Regulatory Agreement for San Miguel Ranch
J:\COMMDEV'SI'AFF.RE!'IO6-1:H>4\TriMark Pacific All Hsg Reg Agreement.doc [6/3/04; 8:36 AM]
/ 2. ~.I.f
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE AFFORDABLE HOUSING REGULATORY AGREEMENT
RELATED TO SAN MIGUEL RANCH BETWEEN THE CITY AND TRIMARK
PACIFIC-MAR BRISA, LLC AND AUTHORIZING THE MAYOR TO EXECUTE THE
AGREEMENT
WHEREAS, on August 7, 2001, the City and NNP-Trimark San Miguel Ranch, LLC rDeveloper")
executed an Affordable Housing Agreement for San Miguel Ranch. The Affordable Housing Agreement stated that
pursuant to the City of Chula VISta Housing Element and the establishment of the City's "Affordable Housing Policy", the
Developer is required to provide 10% of each housing development of 50 or more unils to be affordable to low and
moderate income households, with at least one half of those units (5% of project total units) being designated for low
income households; and
WHEREAS, under the City's Balanced Communities Policy of the Housing Element, the Developer
has an obligation to provide 10 percent of those new residential housing units within the Project as affordable to low
and moderate-income families (5% low and 5% moderate); and
WHEREAS, based on units constructed, final maps and tentative maps for San Miguel Ranch to
date, a total of 1,394 residential housing units are anticipated. Therefore, the Developer has an obligation to provide
70 units affordable to low income households and 70 affordable to moderate income households within the Project;
and
WHEREAS, Developer has provided 25 moderate income units within the existing San Miguel
Ranch Community; and
WHEREAS, in October 2002, the Developer confinned that Neighborhood "A" would be the site for
the remaining affordable housing. The site allows for a maximum of 129 units. The Builder is proposing a 120 unit
for sale project, which would provide 70 low-income affordable unils, 45 moderate-income units and 5 market rate
units; and
WHEREAS, TriMark Pacific-Mar Brisa LLC desires to satisfy the affordable housing obligation through a
for sale project, the details of which are contained within the Affordable Housing Regulatory Agreement; and
WHEREAS, this Affordable Housing Regulatory Agreement implements affordable housing
requirements and impacts previouslý analyzed in the certified EIR for the San Miguel Ranch GDP and SPA Plan,
therefore, no additional action is required under CEQA.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chura Vista that this City
Council does hereby approve, in the fonn presented, the Affordable Housing Regulatory Agreement related to San
Miguel Ranch, a copy of which shall be kept on file in the Office of the City Clerk.
BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to
execute said Affordable Housing Regulatory Agreement with TriMark Pacific-Mar Brisa, LLC for and on behalf of the
City of Chula Vista.
Presented by
Approved as to fonn by
¥-+b
Laurie Madigan
Community Development Director
[Do] J:\HOMEICOMMDEVlRESOS\6-1 S-O4 AttachmentslCC TrtMark Pacific AIf Hag Reg Agreement
/2--t"
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
~~!k
City Attorney
Dated:
The Affordable Housing Regulatory Agreement
Between the City ofChula Vista and Trimark
Pacific-Mar Brisa, LLC for the San Miguel
Ranch Community
/2--7
RECORDING REQUESTED BY AND
WHEN RECORDED MAlL TO:
CityofChula Vista
276 Fourth Avenue
Chula Vista CA 91910
Attn: Planning & Housing Manager
No fee for recording pursuant to
Government Code Section 27383
(Space above for Recorders Use)
AFFORDABLE HOUSING REGULATORY AGREEMENT
TIllS AFFORDABLE HOUSING REGULATORY AGREEMENT (this "Agreement") is entered into
as of June -' 2004, between the CITY OF CHULA VISTA, a municipal corporation ("City"), and TR1MARK
PACIFIC - MAR BRlSA, LLC, a Califomia limited liability company ("Developer") and/or its successors or
assignees.
ARTICLE 1 - Recitals
1.1 Authoritv. The City is a municipal corporation, organized and existing under the laws of the
State of California. City is authorized to enter into binding agreements for the purpose of protecting public
health, safety, and welfare.
1.2 DevelolJer. Developer is the legal owner of the fee title to the real property which is described
in the attached Exhibit "A", which is hereby incorporated herein (the "Real Property"). The Real Property
will be a condominium project established pursuant to Section 1350, et seq. of the California Civil Code. The
Real Property is currently unimproved.
1.3 Project. Developer proposes to construct a multifamily housing project (the "Project") with
120 town home styled condominiums. Each condominium dwelling unit in the Project is referred to as a 'Unit"
in this Agreement. The Project will consist of seventy (70) Units affordable to Low Income Buyers, forty-five
(45) Units affordable to Moderate Income Buyers, with the remaining five (5) Units unrestricted in any manner
by this Agreement. The five (5) unrestricted Units are referred to as the "Unrestricted Units". Developer shall
not be bound by any of provisions contained hereafter with respect to the Unrestricted Units.
1.4 Implementation of City Council Resolution 2001-258. This Agreement is intended to satisfy
the requirement of City Council Resolution 2001-258 and the Affordable Housing Agreement previously
entered into between Developer and the City and recorded November I, 2001, as Document No.
2001-0798037, which require that, as a condition to issuance of building pennits, an Affordable Housing
Regulatory Agreement be entered into between the City and Developer whereby Developer agrees to provide a
specified percentage of the Units as low income housing. The parties intend that this Agreement constitute the
agreement referred to in City Council Resolution 2001-258 and the Affordable Housing Regulatory Agreement
described in this Section 1.4, and this Agreement satisfy the remainder of Developer's affordable housing
obligations thereunder.
"'550-0009 251465.7 "'"
/2- ~'Z
1.5 Imvlementation of City Council Policv No. 453-02. This Agreement is also intended to
implement City Council Policy No. 435-02, which became effective on December 9, 2003.
1.6 Bindin¡¡ On Successive Owners. Pursuantto California Government Code Section 27281.5,
the parties intend that this Agreement constitute an encumbrance against the Real Property (other than the
Unrestricted Units) which, during the Term of this Agreement, is binding on the owners and successive owners
of the Real Property (other than the Unrestricted Units) for the benefit of the City.
NOW THEREFORE, THE CITY AND DEVELOPER HEREBY AGREE AS FOLLOWS:
ARTICLE 2 - Definitions
The following defmitions apply for purposes of this Agreement:
2.1
"Affordable Unit" means a Low Income Unit or Moderate Income Unit.
2.2 "Area Median Income" means the latest median income from time to time determined by the
United States Department of Housing and Urban Development (pursuant to Section 8 of the United States
Housing Act of 1937) for the San Diego Standard Metropolitan Statistical Area, and as established by
regulation of the State of California pursuant to Health and Safety Code Section 50093.
2.3 "Buyer-Elected Options and Upgrades" means options and upgrades included in a Unit that
are not included within the plans and specifications for standard production Units and that are paid for in cash
by the buyer.
2.4 "Buyer-Qualified Interest Rate" means the interest rate a buyer qualifies for and obtains
under a loan, the proceeds of which are used to purchase the Affordable Unit.
2.5
"Low Income Affordable Sales Price" shall be determined pursuant to Section 4.3 below.
2.6 "Low Income Buyers" means individuals or families with an income which does not exceed
eighty percent (80 %) of the Area Median Income, as adjusted for household size; provided, however, all
income from members of the household who are under the age of twenty-three (23) years old and are full-time
students, upon submission to the City of sufficient verification thereof, shall be excluded from the calculation
of a Low Income Buyer's income.
2.7 "Low Income Unit" means any of the seventy (70) Units which shall be sold by Developer to
a Low Income Buyer at the Low Income Affordable Sales Price and initially occupied by a Low Income Buyer.
2.8 "Low Income Unit Marketing Period" means the period commencing on the fIrst day the
fIrst Low Income Unit is marketed to Low Income Buyers in the public pursuant to all normal State of
California Department of Real Estate regulations and upon approval by the City and continuing for ninety (90)
days thereafter, during which period Developer shall market the two (2), three (3) and four (4) bedroom Low
Income Units pursuant to Sections 4.4, 4,5 and 4.6.
2.9
"Market Rate Price(s)" shall be as described in Section 4.2 below.
2.10 "Moderate Income Affordable Sales Price" shall be a price at which Developer complies
with its obligation to sell Moderate Income Units to Moderate Income Buyers, as more particularly described in
Sections 4.8 and 4,9.
06",0.0009 251465.7do,
2
/2- -1
2.11 "Moderate Income Buyers" means individuals or families with an income which does not
exceed one hundred forty percent (140 %) of the Area Median Income, as adjusted for household size;
provided, however, all income from members of the household who are under the age of twenty-
three (23) years old and are full-time students, upon submission to the City of sufficient verification thereof,
shall be excluded from the calculation of a Moderate Income Buyer's income.
2.12 "Moderate Income Unit" means any of the forty-five (45) Units which shall be sold by
Developer to and initially occupied by a Moderate Income Buyer.
2.13 "Monthly Housing Cost" means the sum of monthly payments for all of the following with
respect to a Low Income Unit or Moderate Income Unit:
2.13.1 Principal and interest, amortized over thirty (30) years, at the then current fIXed
interest rate, payable under the First Trust Deed Loan (as defined below), which is then available to acquire an
Affordable Unit;
2.13.2 Any special tax district assessments, Mello-Roos special taxes, prorated monthly,
which apply to the Affordable Unit;
2.13.3 The monthly homeowners association regular assessments which apply to the
Affordable Unit; and
2.13.4 A reasonable allowance forreal estate taxes and insurance not included in the above
costs, prorated monthly.
2.14
"Mortgage Amount" shall be as described in Sections 4.3.1 or 4.3.2, whichever is applicable.
2.15 "Silent Second Note" shall refer to the promissory note made by a Low Income Buyer in favor
of the City which is equal to the difference between the Market Rate Price and the Low Income Affordable
Price ofaLow Income Unit. The form of the Silent Second Note shall be as set forth on Exhibit "B" attached
hereto.
2.16 "Silent Second Trust Deed" shall refer to a deed of trust which secures a Silent Second Note.
The form of the Silent Second Trust Deed shall be as set forth on Exhibit "cn attached hereto.
2.17
"Term" shall be described in ARTICLE 5 below.
ARTICLE 3 - Development Standards
The permitted uses of the Real Property, the density of use thereof, the maximum height and size of
buildings thereon, and provisions for reservations or dedication of land for public purposes and all other
standards of development of the Real Property will be governed by each of the following as presently
constituted:
3.1
San Miguel Ranch SPA Designation. Medium High Residential (11-18du/ac).
3.2
Zone Regulations. The regulations for Planned Community.
3.3 Design Review. The Design Review Committee's approval of the project as referenced in
DRC-04-07 and any exhibits referred to therein at its meeting on January 12, 2004.
""'0.0009 2>"".7"""
3
/2 -10
3.4 Parking. The requirements set forth in the City-approved site development plan for the
Project, which includes, among other things, the following: (a) 200 garage spaces, (b) 76 standard (10' x23')
spaces, (c) 12 parallel on-street spaces and (d) 2 disabled spaces, for a total of290 parking spaces.
3.5 Open Space. The requirements set forth in the City-approved site development plan for the
Project, which includes, among other things, the following: (a) 4,480 square feet of private deck area,
(b) 3,821 square feet of picnic/BBQ facilities, (c) 8,301 square feet of COmmon recreation area,
(d) 37,441 square feet of in-tract slopes and (e) 55,808 square feet of common useable open space area.
ARTICLE 4 - Marketinl!: of Affordable Units
4.1 Low Income Units. Of the one hundred twenty (120) Units in the Project, Developer shall sell
seventy (70) Units only to Low Income Buyers. The seventy (70) Low Income Units shall be comprised as
follows: (a) thirty (30) two (2) bedroom Units, (b) thirty (30) three (3) bedroom Units and
(c) ten (10) four (4) bedroom Units. The sales price of each such Low Income Unit shall be the Market Rate
Price, with the Silent Second Note being in original principal amount equal to the difference between the
Market Rate Price and the Low Income Affordable Price of a Low Income Unit. The Silent Second Note shall
be secured by the Silent Second Trust Deed encumbering the Low Income Unit which is sold to a Low Income
Buyer. The Silent Second Trust Deed shall be subordinate in priority to the institutional trust deed loan ("First
Trust Deed Loan") which the Low Income Buyer obtains to purchase the property.
4.2 Market Rate Price. The Market Rate Prices for the Affordable Units shall initially be the
amounts set forth in the attached Schedule "1". Pursuant to the procedures set forth in this Section 4.2 and
subject to the City's prior written approval, which approval shall not be unreasonably withheld, conditioned or
delayed, the Market Rate Prices for the Affordable Units in an upcoming phase may be revised at any time
prior to the release of such phase. No less than ten (10) days prior to the scheduled release date ofa phase,
Developer shall submit to the City Developer's proposed revisions, if any, to the Market Rate Prices for the
Affordable Units in such phase. Within five (5) days after such submission, the City shall approve or
disapprove such proposed revisions. If the City disapproves and objects to Developer's proposed revisions
within such five (5)-day period, Developer mayre-submitfurther revisions to the Market Rate Prices to address
the City's grounds for objection, and the City shall thereafter have five (5) days to approve or disapprove
Developer's proposed revisions. If, however, the City fails to approve or disapprove Developer's proposed
revisions within the initial five (5)-dayperiod (or the subsequent five (5)-dayperiod in caseofre-submission),
Developer's proposed revisions shall be deemed approved.
4.3 Calculation of Low Income Affordable Sales Price. The Low Income Affordable Sales Price
of a Low Income Unit shall be the sum of the Mortgage Amount and a down payment of3% of the Low
Income Affordable Sales Price.
4.3.1 The Mortgage Amount - FHA Insured Loans. For FHA insured loans, the Mortgage
Amount for Low Income Buyers shall be a First Trust Deed Loan in that original principal amount which
requires equal monthly payments, amortized over thirty (30) years at the Buyer-Qualified Interest Rate, which
when added to the other Monthly Housing Costs results in Monthly Housing Costs that equal 28.8% (that is
36% times 80%) of the Area Median Income, as adjusted for household size appropriate to the Low Income
Unit as specified in Section 4.9 below. The Buyer-Qualified Interest Rate must remain fIXed for at least the
fITSt five (5) years of the tenD of the FHA insured loan.
4.3.2 The Mortgage Amount- Conventional Loans. For conventional loans, the Mortgage
Amount for Low Income Buyers shall be a First Trust Deed Loan in that original principal amount which
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requires equal monthly payments, amortized over thirty (30) years at the Buyer-Qualified Interest Rate, which
when added to the other Monthly Housing Costs results in Monthly Housing Costs that equal 32% (that is 40%
times 80%) of the Area Median Income, as adjusted for household size appropriate to the Low Income Unit as
specified in Section 4.9 below. The Buyer-Qualified Interest Rate must remain fIXed for at least the fIrst five
(5) years of the tenD of the conventional loan.
4.3.3 Minimum Low Income Affordable Sales Price. The calculation of the Low Income
Affordable Sales Price for a Low Income Unit pursuant to this Section 4,3 shall in no event be less than the
amount below for the corresponding type of Low Income Unit:
Unit Size
Minimum Low Income
Affordable Sales Price
Two (2) Bedroom
Three (3) Bedroom
Four (4) Bedroom
$152,000
$182,000
$208,000
4.4 Marketing of2 BR Low Income Units. During the Low Income Unit Marketing Period, each
two (2) bedroom Low Income Unit shall be marketed by Developer only to persons who qualify as Low
Income Buyers with households of three (3) persons or more.
4.5 Marketing of) BRLow Income Units. During the Low Income Unit Marketing Period, each
three (3) bedroom Low Income Unit shall be marketed by Developer only to persons who qualify as Low
Income Buyers with households offive (5) persons or more.
4.6 Marketing of 4 BR Low Income Units. During the Low Income Unit Marketing Period, each
four (4) bedroom Low Income Unit shall be marketed by Developer only to persons who qualify as Low
Income Buyers with households of six (6) persons or more.
4.7 After the Low Income Unit Marketing Period. After the Low Income Unit Marketing Period,
Developer may market any remaining Low Income Units which are affordable to Low Income Buyers with any
household size. Developer shall deliver to the City written notice of the first day and the last day of the Low
Income Unit Marketing Period. The tennination of the Low Income Unit Marketing Period will be evidenced
by written notice to Developer ITom the City.
4.8 Moderate Income Units. Developer shall sell forty-five (45) of the Units to Moderate Income
Buyers. The forty-five (45) Moderate Income Units shall be comprised as follows: (a) ten (10) two (2)
bedroom Units, (b) ten (10) three (3) bedroom Units and (c) twenty-five (25) four (4) bedroom Units.
4.9 Unit Sizes and Aoorooriate Household Sizes. The following are the household sizes
appropriate to an Affordable Unit, for calculation of Mortgage Amount based upon 1.5 persons per bedroom
and consistent with the City of Chula Vista Policy for the Development of Affordable For Sale Housing for
Low Income Buyers:
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Unit Size
Household Size
Two (2) Bedroom
Three (3) Bedroom
Four (4) Bedroom
Three Persons
Four and a half Persons
Six Persons
Calculation of the Low Income Affordable Sales Price and Moderate Income Affordable Sales Price
shall be based upon the assumed household size specified for the Affordable Unit size as set forth in the
foregoing table notwithstanding the actual size of the household that purchases the Affordable Unit.
4.10 Proof of Qualification. Developer will obtain ftom each person( s) to whom Developer sells an
Affordable Unit a "Supplemental Buyer Application" (the "Application") in the fonD of Exhibit "D" attached
hereto (or such other fonD as the City may ftom time to time adopt and of which the City will notifY Developer
in writing). Developer will be entitled to rely on the Application and the supporting documents thereto in
determining the eligibility of such person(s) to buy such Affordable Unit. Developer will retain the
Application and supporting documents for a period of at least seven (7) years after the buyer thereof closes
escrow for the purchase of the Affordable Unit.
4.11 Records Audits. Developer will submit to the City monthly copies of all Applications,
available settlement or closing statements with respect to each Affordable Unit that has closed escrow, and
documents submitted containing information with respect to each Affordable Unit including (i) the monthly
amortized Mortgage Amount, (ii) the number of occupants for which the Affordable Unit is sold, (iii) the
income of such occupant(s), (iv) the Market Rate Price of the Affordable Unit and (v) the Low Income
Affordable Sales Price of the Low Income Unit or the Moderate Income Affordable Sales Price of the
Moderate Income Unit, whichever is applicable. Such submission shall be in the fonD of Exhibit "D"
attached hereto (or such other form as the City may from time to time adopt and of which the City notifies
Developer in writing). If the City reasonably believes that violations of the sales price, occupancy andlor
income requirements of this Agreement have occurred, and that an audit is necessary to verify submitted
Applications and documentation, it will so notify Developer in writing thereof. Within ten (10) days after
delivery of said notice, Developer will deliver to the City the names of three certified public accountants doing
business in the metropolitan San Diego area. The City will promptly deliver to Developer the former's
approval of one or more of said names. The audit will be completed by an approved certified public
accountant, at Developer's cost, within 60 days after the delivery to Developer of the City's said approval. The
certified public accountant will promptly deliver a copy of the written audit to the City. Developer shall
regularly evaluate its compliance with the sales price, occupancy and income requirements of this Agreement
and exercise good faith efforts to avoid any violations thereof.
4.12 City Approval of Marketing Plan: Selection of Low Income Unit Buvers. The following
requirements shall apply with respect to Developer's marketing of the Low Income Units:
4.12.1 Marketing Plan. Developer shall prepare a marketing plan in compliance with Federal
and State Fair Housing Laws, and the City shall review the same for compliance with City laws. Such
marketing plan shall include a plan for publicizing the availability of the Low Income Units within the City,
such as notices in any City sponsored newsletter, newspaper advertising in local newspapers and notices in
City offices. The marketing plan shall require Developer to obtain ftom the City the names of low income
households who have been displaced by the City Redevelopment Agency redevelopment projects, and to notifY
persons on such list of the availability of Low Income Units in the Project prior to undertaking other forms of
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marketing. The marketing plan shall provide that the persons on such list of displaced persons be given not
fewer than fifteen (15) days after receipt of such notice to respond by completing application forms for
purchase of Low Income Units, as applicable.
4.12.2 Income Requirements. All buyers of each Low Income Unit shall meet the income
requirements set forth in this Agreement. Selection of Low Income Buyers shall be made based upon the
Buyer Selection Criteria as established by the City's Policy for the Development of Affordable For Sale
Housing for Low Income Buyers within the following levels of priority. A point system has been established
so that applicants with a higher number of points will receive preference for Low Income Units.
5 points Households which are displaced from their primary residence as a result
of any of the following: (i) expiration of affordable housing covenants applicable to such residence;
(ii) an action of the City or the City Redevelopment Agency, (iii) closure of a mobile home or trailer
park community in which the household's residence was located; or (iv) a condominium conversion
involving the household's residence. One member in the household must have resided in such housing
as the primary place of residence for at least one year prior to such action or event.
3 points Households with at least one member who has worked within the City, as
that person's principal place of full-time employment, for at least one year prior to the date of
application for such housing.
2 points Households with at least one member who is a Public Safety employee
(fire and police) or Credentialed Teacher.
I point
All other applicants who do not meet any of the above criteria.
In the situation where there are applicants with an equal number of points but not enough Low Income Units
are available, a lottery will be held at a place and time to be announced by the City and Developer.
4.13 City's Evaluation ofOualification of Low Income Buyers: Authority of City To Receive Loan
Applications. Developer shall reasonably assist the City in obtaining from each Low Income Buyer (or
prospective Low Income Buyer) a fonD signed by the Low Income Buyer authorizing the release to the City of
the prospective buyer's 1003 (Mortgage Loan Application), Good Faith Estimate and Underwriting Transmittal
Summary (1 008) or similar form from the applicable lender. The City shall have the right to require each such
lender to forward to the City the loan documentation for any loan to a Low Income Buyer. The City will
evaluate these forms and communicate its evaluation to Developer. After the City's review and verification that
a prospective buyer is qualified as a Low Income Buyer, the City will send an Approval Notice to the lender
and Developer confirming the prospective buyer's eligibility.
4.14 Qualification Criteria. The City will utilize the following criteria in evaluating an application
by a Low Income Buyer (or prospective Low Income Buyer):
4.14.1 Neither the Low Income Buyer nor such Low Income Buyer's spouse has owned a
home during the three (3) - year period immediately preceding the purchase of the Low Income Unit.
4.14.2 The Low Income Buyer's down payment must not be less than three percent (3%) of
the Low Income Affordable Sales Price.
06"'°-0009 2:5"".1"",
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4.14.3 The Low Income Buyer's liquid assets after down payment, Low Income Buyer's
closing costs and Low Income Buyer's cash payments for Buyer-Elected Options and Upgrades must not
exceed $25,000.00.
4.14.4 Non-occupant co-borrowers are not allowed.
4.14.5 The maximum Monthly Housing Costs must not exceed 36% of monthly income for
FHA insured loans and 40% of monthly income for all other loans.
4.14.6 The maximum debt-to-income ratios must not exceed 41 % for FHA insured loans and
45% for all other loans.
4.14.7 No refinancing for cash-out or debt consolidation purposes will be allowed (but rate
and term refinancing is permitted).
4.15 Information Packet. Developer shall provide an informational packet to each Low Income
Buyer, summarizing the requirements of the City's affordable for sale housing for Low Income Buyers program
provided for in this Agreement. The City shall, at Developer's request, reasonably assist Developer with the
preparation or review of the informational packet.
4.16 Insurance. The City shall have the right to require the following of a each Low Income Buyer:
Within ten (10) days after a Low Income Buyer's acquisition of a Low Income Unit, such Low Income Buyer
shall furnish to the City duplicate originals or appropriate certificates of insurance coverage evidencing that
such Low Income Buyer has obtained, or cause to be obtained, the insurance coverage with respect to the Low
Income Unit that is required under the terms and conditions of the Silent Second Trust Deed.
ARTICLE 5 - Term
The Term of this Agreement commences on the date of this Agreement. The Term ends on the date
the close of escrow occurs for the sale by Developer of the last Affordable Unit pursuant to the requirements of
this Agreement. Immediately following the close of escrow of the last Affordable Unit pursuant hereto, the
City shall record a termination of this Agreement in the Office of the County Recorder of San Diego County,
California.
Each Affordable Unit shall automatically be released from the encumbrance of this Agreement at the
close of the buyer's escrow for the Affordable Unit for the purchase of the Affordable Unit from Developer.
Any portion of the Real Property that is conveyed by Developer to the condominium homeowner's association
established for the Real Property shall be automatically released from the encumbrance of this Agreement upon
such conveyance.
ARTICLE 6 - Subordination
Upon request, the City shall subordinate this Agreement to any first deed of trust which Developer
obtains for construction of the Project and the First Trust Deed Loans obtained by buyers to purchase their
Affordable Units. However, any subordination agreement entered into by the City shall contain written
commitments which the City frods are reasonably designed to protect the City's interests in the event of default,
such as any of the following: (a) aright of the City to cure a default on the loan prior to foreclosure, (b) aright
of the City to negotiate with the lender after notice of default from the lender and prior to foreclosure, (c) an
agreement that if prior to foreclosure of the loan, the City takes title to the property and cures the default on the
loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to
06"'0.0009 251465.7"'"
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the City, and (d) a right of the City to acquire through foreclosure under the Silent Second Trust Deed the
Affordable Unit ITom the buyer at any time after a material default on the loan.
ARTICLE 7 - Additional Provisions Rel!ardinl! The Real Property
7.1 Condition of the Real Property. The following provisions shall apply only during the period of
time that Developer is developing and marketing the Project.
7.1.1 Developer shall take all necessary precautions to prevent the release, by Developer or
its contracts, into the environment of any Hazardous Materials which may be located in, on or under the Real
Property. Such precautions shall include compliance with all Governmental Requirements with respect to
Hazardous Materials. In addition, Developer shall install and utilize such equipment and implement and adhere
to such procedures as are consistent with commercially reasonable. standards as respects the disclosure, storage,
use, removal and disposal of Hazardous Materials.
7.1.2 Developer shall indemnify, defend and hold the City harmless from and against any
claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fme, penalty, punitive damage, or
expense (including, without limitation, reasonable attorneys' fees), resulting from, arising out of, or based upon
Developer's or its contractor's (i) release, use, generation, discharge, storage or disposal of any Hazardous
Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Real
Property, no matter when such claim, action, suit or proceeding is fIrst asserted or begun and no matter how the
Hazardous Materials came to be released, used, generated, discharged, stored or disposed of on, under, in or
about, to or ITom the Real Property, or by whom or how they are discovered, or (ii) violation, or alleged
violation, of any statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use,
generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about,
to or ITom, the Real Property. This indemnity shall include, without limitation, any damage, liability, fme,
penalty, parallel indemnity after closing, cost or expense arising from or out of any claim, action, suit or
proceeding, including injunctive, mandamus, equity or action at law, for personal injury (including sickness,
disease or death), tangible or intangible property damage, compensation for lost wages, business income,
profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination,
leak, spill, release or other adverse effect on the environment. This indemnity shall survive the Term or earlier
termination of this Agreement.
7.1.3 For purposes of this Agreement, "Hazardous Materials" means any substance,
material, or waste which is or becomes regulated by any local governmental authority, San Diego County, the
State of California, regional governmental authority, or the United States Government, including, but not
limited to, any material or substance which is (i) defined as a "hazardous waste," "extremely hazardous waste,"
or "restricted hazardous waste" under Section 25115, 25117 or25122.7, or listed pursuantto Section 25130 of
the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) defined
as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20,
Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defmed as a "hazardous
material," "hazardous substance," or "hazardous waste" under Section 25501 of the California Health and
Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv)
defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division
20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii)
polychlorinated byphenyls, (viii) methyl tertiary butyl ether, (ix) listed under Article 9 or defined as
"hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Code of Regulations,
Division 4, Chapter 20, (x) designated as "hazardous substances" pursuant to Section 311 of the Clean Water
Act (33 U.S.C. Section 1317), (xi) defmed as a "hazardous waste" pursuant to Section 1004 of the Resource
°"550-0009 251465.7 do<
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Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903) or (xii) derIDed as
"hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation, and Liability Act, 42 U.S.c. Section 9601, et seq.
7.1.4 For purposes of this Agreement, "Governmental Requirements" means all laws,
ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State, the County of
San Diego, the City, or any other political subdivision in which the Property is located, and of any other
political subdivision or instrumentality exercising jurisdiction over the City, Developer or the Real Property.
7.1.5 Taxes. Assessments. Encumbrances. and Liens. Developer shall pay prior to
delinquency all real estate taxes and assessments properly assessed and levied on portions of the Real Property
which are owned by Developer.
Nothing herein contained shall be deemed to prohibit Developer from contesting the validity or
amounts of any tax, assessment, encumbrance, or lien, nor to limit the remedies available to Developer in
respect thereto.
7.2 Hold Hannless. Developer agrees to indemnify, protect, defend and hold hanDless the City,
and their officers, agents, employees, representatives and successors, from and against any and all claims,
damages, actions, costs, demands, expenses or liability, including without limitation, reasonable attorneys' fees
and court costs, which may arise from the direct or indirect actions or inactions of Developer or those of its
contractors, subcontractors, agents, employees or other persons acting on Developers' behalf which relate to
Developer's construction and marketing activities of the Real Property or Project. This hold hann1ess
agreement applies, without limitation, to all damages and claims for damages suffered or alleged to have been
suffered by reasons of the operations referred to in this Section 7.2, regardless of whether or not the City
prepared, supplied or approved plans or specifications, or both, for the Real Property or Project.
Notwithstanding anything to the contrary contained herein, this indemnity shall not apply to any claims,
damages, actions, costs, demands, expenses or liability which arises out of either: (a) the exclusive marketing
requirements contained in Section 4.12.1, or (b) the use of the point system contained in Section 4.12.2. This
indemnity by Developer, and all other indemnities set forth herein shall survive any foreclosure of the Real
Property by the City pursuant to the terms of the Silent Second Trust Deed and the Term or earlier termination
of this Agreement.
7.3 Obligation to Retrain from Discrimination. There shall be no discrimination against, or
segregation of, any persons, or group of persons, on account of race, color, creed, religion, sex, marital status,
ancestry, or national origin in the enjoyment of the Real Property. Developer shall further comply with all the
requirements of the Americans with Disabilities Act and the Americans with Disabilities Act Accessibility
Guidelines (collectively, "ADA").
7.4 Form of Nondiscrimination and Nonsegregation Clauses. Developer shall retrain from
restricting the sale of any portion of the Real Property, or contracts relating to the Real Property, on the basis of
race, color, creed, religion, sex, marital status, ancestry, or national origin of any person and shall comply with
all the requirements for the ADA. All such deeds, leases or contracts, shall contain or be subject to
substantially the following nondiscrimination or nonsegregation clauses:
7.4.1 In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs,
executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color, creed,
religioo, sex, marital status, ancestry, or national origin in the sale, lease, sublease, transfer, use, occupancy,
tenure, or enjoyment of the land herein conveyed, nor shall the grantee himself, or any persons claiming under
06",0-0009 """.7 '00
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or through him, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or
vendees in the land herein conveyed and further covenants that all such individuals and entities shall comply
with all requirements of the Americans with Disabilities Act of 1990, as the same maybe amended from time
to time (42 U.S.C. Section 12101, et seq.), and the Americans with Disabilities Accessibility Guidelines. The
foregoing covenants shall run with the land."
7.4.2 In leases: "The lessee herein covenants by and for himself or herself, his or her heirs,
executors, administrators, and assigns, and all persons claiming under or through him, and this lease is made
and accepted upon and subject to the following conditions: 'That there shall be no discrimination against or
segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status,
ancestry, or national origin in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the
land herein leased, nor shall the lessee himself, or any person claiming under or through him, establish or
permit any such practice or practices of discrimination or segregation with reference to the selection, location,
number, use, or occupancy of tenants, lessees, sub lessees, subtenants, or vendees in the land herein lease and
the lease shall be carried out in compliance with all requirements of the Americans with Disabilities Act of
1990, as the same maybe amended from time to time (42 U.S.C. Section 12101, et seq.), and the Americans
with Disabilities Accessibility Guidelines.'"
7.4.3 In contracts: "There shall be no discrimination against or segregation of any persons or
group of persons on account of race, color, creed, religion, sex, marital status, ancestry, or national origin in the
sale, lease, transfer, use, occupancy, tenure, or enjoyment of land, nor shall the transferee himself, or any
person claiming under or through him, establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants,
sub lessees, or vendees of land and all such activities shall be conducted in compliance with all the
requirements of the Americans with Disabilities Act of 1990, as the same maybe amended from time to time
(42 U.S.C. Section 12101, et seq.), and the Americans with Disabilities Accessibility Guidelines."
ARTICLE 8 - Escrow Documentation
The City shall provide Developer with any revision it reasonably deems appropriate to the form Silent
Second Note or the Silent Second Trust Deed for the use in escrow for the sale of each Low Income Unit. The
Silent Second Trust Deed shall be recorded with the County Recorder of San Diego County at close of escrow
for the sale by Developer of each Low Income Unit, and each Silent Second Trust Deed shall legally describe
the particular Low Income Unit it covers, using the same legal description as is used in Developer's deed to its
buyer. Each Silent Second Trust Deed shall be consistent with and implement the terms of this Agreement and
Council Resolution 2001-258.
ARTICLE 9 - Breach
9.1 Breach bv City. If the City breaches any of its covenants contained in this Agreement,
Developer will have available to it all legal and equitable remedies afforded by the laws of the State of
California.
9.2 Breach bv Developer of Sale Price Limit ReQuirements. If, with respect to any Affordable
Unit, Developer intentionally breaches this Agreement by charging higher sales prices than that herein
permitted, Developer will, immediately upon the City's demand, (i) reduce the sales price to that permitted
herein and (ii) refund to any buyers who theretofore paid such higher sales price the amount of the excess,
together with interest hereon at the rate often percent (I 0%) per annum or the maximum legal rate, whichever
is less, computed from the date(s) of payment of the excess by said buyers to the date of said refund. The
06",0-0009 "14".""',
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provisions of this Section 9.2 constitute a third-party beneficiary contract in favor of such buyers. Further, the
City is hereby granted the power (but not the duty) to act as attorney-in-fact of such buyers in enforcing this
Section 9.2.
9.3 Breach bv Developer of Sales Requirements. If, with respect to any Low Income Unit,
Developer intentionally breaches this Agreement by selling to buyers who are not qualified by the City
pursuant to Section 4.13, Developer will, immediately upon the City's written demand, and at Developer's sole
cost, use its reasonable best and lawful efforts to tenninate such sale or otherwise substitute a Moderate Income
Unit or Unrestricted Unit in such sale.
9.4 Breach bv Develooer of Other Requirements. If Developer breaches any of its covenants
contained in this Agreement, the City shall have available to it all legal and equitable remedies afforded by the
laws of the State of California.
9.5 Remedies Not Exclusive. The remedies set forth in this ARTICLE 9 are not exclusive, but are
in addition to all legal or equitable remedies otherwise available to the City and Developer.
ARTICLE 10 - Conflicts of Law
10.1 Conflict ofCitv and State or Federal Laws. In the event that state or federal laws or regulations
enacted after this Agreement has been entered into prevent or preclude compliance with one or more provisions
of this Agreement, or require changes in plans, maps or pennits approved by the City, the parties will:
10.1.1 Notice and Copies: Provide the other party with written notice of such state or federal
restriction, provide a copy of such regulation or policy and statement of conflict with the provisions of this
Agreement.
10.1.2 Modification Conferences: The parties will, within 30 days, meet and confer in good
faith in a reasonable attempt to modify this Agreement to comply with such federal or state law or regulation.
10.2 City Council Hearings. Thereafter, regardless of whether the parties reach an agreement on the
effect of such federal or state law or regulation upon this Agreement, the matter will be scheduled for
consideration by the governing board of the City Council. The City Council, at such meeting, will detennine
the exact modification or suspension which shall be necessitated by such federal or state law or regulation.
Developer, at the meeting, will have the right to offer oral and written testimony. Any modification or
suspension will betaken by the affumativevote of not less than a majority of the authorized voting members of
the governing board of the City Council.
10.3 Coooeration in SecuringPennits. The City shall cooperate with Developer in the securing of
any pennits which may be required as a result of such modifications or suspensions.
ARTICLE 11 - General Provisions
11.1 Severability. The parties hereto agree that the provisions are severable. If any provision of
this Agreement is held invalid, the remainder of this Agreement will be effective and will remain in full force
and effect unless amended or modified by mutual consent of the parties.
11.2 Entire Agreement. Waivers and Amendments. This Agreement, together with any other
written document referred to or contemplated herein, embody the entire Agreement and understanding between
the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be
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amended, modified, waived, cancelled or discharged except by an instrument in writing executed by the party
against which enforcement or such amendment, modification, waiver, cancellation or discharge is sought.
11.3 Capacities of Parties. Each signatory and party hereto hereby warrants and represents to the
other party that it has legal authority and capacity and direction from its principal to enter into this Agreement,
and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement.
11.4 Governin¡¡ LawNenue. 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 ifapplicable,
the City ofChula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder,
shall be the City of Chula Vista.
11.5 Assil!1llDent. Subject to the City's prior review and approval, which review and approval shall
not be unreasonably withheld, delayed or conditioned, the rights and obligations of Developer under this
Agreement may be transferred or assigned and Developer may be released from such obligations upon such
transfer or assignment, provided such transfer or assignment is made as a part of the conveyance of the fee of
all or a portion of the Real Property, and the City. Any such transfer or assignment will be subject to the
provisions of this Agreement. During the term of this Agreement, any such assignee or transferee will observe
and perform all of the duties and obligations of Developer contained in this Agreement as such duties and
obligations pertain to the portion of the Real Property so conveyed.
11.6 Enforcement. Unless amended or cancelled as provided in Section 11.2, this Agreement is
enforceable by any party to it despite a change in the applicable general or specific plans, zoning, subdivision
or building regulations adopted by the City which alter or amend the rules, regulations or policies governing
permitted uses of the land, density and design.
11.7 Bindin¡¡ Effect of A!!Teement. The burdens of this Agreement bind and the benefits of this
Agreement inure to the parties' successors or assignees in interest.
11.8 Relationship of Parties. It is understood that the contractual relationship between the City and
Developer is such that Developer is an independent contractor and not an agent of the City.
11.9 Notices. All notices, demands or requests provided for or permitted to be given pursuantto
this Agreement must be in writing. All notices, demands or requests to be sent to any party shall be deemed to
have been properly given or served if(i) personally served, (ii) deposited in the United States mail, addressed
to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified
herein as the places of business for each of the designated parties, or (iii) electronically transmitted with a
backup copy given or served pursuant to the methods set forth in (i) or (ii) above and addressed to such party at
the e-mail and places of business addresses identified herein for each of the designated parties.
Q!y:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Director, Community Development Department
E-mail:
,.,5So.<JOO<I m465.7<1o,
13
/2 -20
Developer:
Trimark Pacific - Mar Brisa
613 West Valley Parkway, Suite 200
Escondido, CA 92025
Attn: Mr. Paul Faye
E-mail: pfaye@trimarkpacific.com
With a cOPV to:
Trimark Pacific
85 Argonaut, Suite 205
Aliso Viejo, CA 92656
Attn: Mr. Stephen E. Hester
E-mail: shester@trimarkpacific.com
A party may change its address by giving notice in writing to the other party. Thereafter, notices, demands and
requests shall be addressed and transmitted to the new address.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the
day and year fIrSt written above.
"CITY"
CITY OF ClillLA VISTA, a municipal corporation of the
State of California
By:
Stephen C. Padilla, Mayor
ATTEST:
Susan Bigelow, City Clerk
APPROVED AS TO FORM:
Ann Moore, City Attorney
06"'0-0009 "'46'.7<10,
14
/2 -21
2:Ø'd ltilOl
Jun-Og-ZOO4 15:IZ
Fro.-
"DEVELQpER"
T-S~I
P.002/002 F-4U
TRlMAlu< PACIFIC - MAR BRISA, liC, a California
linrited liability COmpany
By
TPH, liC, a California lirnin,d liability company.
Its Member MalUlger
By:
]5
/,2 -22-
TriMarlc Ventures, hie.. a California cOIpOl'lltion,
Its Member
BY:~ ~~
Stcpb . Hester.
Its Executive Vice President
""""". "...,.~....
EXHIBIT A
LEGAL PROPERTY DESCRIPTION
All that certain real property situated in the City of Chula Vista, County of San Diego, State of California,
described as follows:
Lot 12 of CHULA VISTA TRACT NO. 99-04, San Miguel Ranch Phases I, ll, & IV, "A"
Map No.1, in the City ofChula Vista, County of San Diego, according tu Map thereof No.
14261 filed in the Office of the County Recorder of San Diego County, California.
EXHIBIT A
06SSSM009 2.5l46'.3 do,
12 -~23
EXHIBIT B
FORM OF SILENT SECOND NOTE
EXHIBIT B
'",,0-0009 251465.3 """
/2 -2'1
APN:___-
FTHB #
NOTICE: THIS NOTE MAY REQUIRE PAYMENT OF PRINCIPAL, INTEREST AND EQUITY
SUMS UPON THE SALE OR TRANSFER OF THE PROPERTY OR UPON A PREPAYMENT.
FURTHER, THIS NOTE IS A SHARED APPRECIATION NOTE AS DEFINED IN SECTION 1917,
ET SEQ. OF THE CALIFORNIA CIVil CODE.
PROMISSORY NOTE SECURED BY DEED OF TRUST
$-
Amount
Date
[Property Address]
1. Borrower's Promise to Pay. For value received, the undersigned, - ("Borrower"),
promises to pay to the City of Chula Vista ("City"), or order, the sum of -
DOLLARS ($ ) with interest accruing thereon as hereinafter provided, and
payable as set forth below. It is understood that the City may transfer this Note. The
City or anyone who takes this Note by transfer and who is entitled to receive payments
under this Note will be called the "Note Holder",
2. No Interest. This Note will bear no interest unless Borrower defaults under the terms of
this Note or the Deed of Trust securing it. In the event of default, interest from the
Date of this Note shall be calculated at:
a)
The rate equal to the interest rate of the senior trust deed or, in the
event of no senior trust deed,
b)
The prevailing rate of the Prime Rate as published in the Wall Street
Journal, on the date of default.
3. Payments and Term. The sums evidenced by this Note, including all principal, interest
(if any) and the share of the Equity due and payable to the Note Holder shall become
due and payable at such time as Borrower sells, rents, refinances, transfers or changes
the title to the property (the "Property") which is encumbered by the second deed of
trust ("Deed of Trust") which secures this Note. "Equity" and the portion payable to
the Note Holder are defined and described in the Deed of Trust. As described in the
Deed of Trust, the sale, rental, refinance, conveyance, transfer or change in title of the
Property prior to the forty-fifth (45th) anniversary date of the Deed of Trust will result in
the Note Holder's share of the Equity to be payable to the Note Holder. Principal shall
also become due and payable upon the forty-fifth (45th) anniversary date of the Deed of
Trust. No delay or omission on the part of the City shall operate as a waiver of such
right of repayment or of any other right of this Note. The principal amount of this Note,
together with interest (if any) accruing thereon from the date hereof as set forth in
Section 3 and the Equity, shall be due and payable on or before the date provided by the
City in the Notice of Acceleration, which shall not be less than ninety (90) days, if all or
!Ž -2'5
251478-4
any part of the Property or any interest in it is sold, rented, refinanced, conveyed, or
transferred or if a beneficial interest in Borrower is sold, rented, refinanced, conveyed,
or transferred (each of which is called a "Transfer") without the prior written consent
of the City. The City shall not exercise this right of acceleration if prohibited by federal
law or if the Note Holder has executed a separate written waiver of its right to do so.
The following shall not constitute a Transfer:
(e)
(f)
(a)
A transfer of the Property from a deceased Borrower to the surviving
spouse of Borrower if the surviving spouse is also named as a
Borrower;
(b)
A transfer of the Property by Borrower to his/her spouse pursuant to
which the spouse becomes a co-owner of the Property;
(c)
A transfer of the Property resulting from a decree of dissolution of
the marriage or legal separation or from a property settlement
agreement incidental to such a decree which requires Borrower to
continue to make payments on the Note and by which a spouse who
is already a Borrower becomes the sole owner of the Property;
(d)
A transfer of the Property by Borrower to an inter-vivos trust in
which Borrower is the sole beneficiary and which is done for estate
planning purposes only and does not result in any change in
possession of the Property;
A refinancing to which the beneficiary under the Deed of Trust is
obligated to subordinate the Deed of Trust.
A refinancing which does not result in cash excess paid to Borrower
or which is used for debt consolidation, equity line of credit or similar
purposes.
All payments made under this Note shall be paid in lawful money of the United States to
the City of Chula Vista at 276 Fourth Avenue, Chula Vista, CA 91910, Attention:
Community Development Department, Housing Division.
4. Prepayment. .Borrower has the right to prepay the principal without incurring any
penalty, apart from any interest that may be due under default provisions above. In the
event that Borrower chooses to prepay the Note, Borrower must notify Note Holder in
writing. Upon any such prepayment, the City's share of the Equity shall become
immediately due and payable to the Note Holder
5. No Interest If No Default; No Equity Sharing If After 45 Years If No Default. Provided
that Borrower is not in default under the terms of this Note or Loan Documents, no
interest shall accrue under the Note. The City shall not share any Equity unless the
principal balance of this Note becomes accelerated prior to expiration of the FORTY-
FIFTH (45th) year after the date of the execution of the Note. Nothing contained in this
Section 5 shall be construed as a promise by the City to forgive or relinquish the right to
seek repayment of the principal of this Note.
6. Default Under Deed of Trust. Notwithstanding any other provisions of the Note, if
default occurs in any of the covenants or agreements contained in the Deed of Trust
11 - 26
251478-4
securing this Note, this Note, including ail unpaid principal, interest and Equity sharing,
shail immediately become due and payable in fuil at the option of the City. In the event
the City exercises such option, the amounts due and payable shail be the principal
balance remaining on the Note and other amounts owing, together with accrued but
unpaid interest as described above.
7. Attorneys' Fees. Should suit be commenced to coilect on this Note, or any portion
thereof, such sum as the court may deem reasonable shail be added hereto as
attorneys' fees.
8. Time. Time is of the essence herein.
9. Amendments. This Note may not be modified or amended except by an instrument in
writing expressing such intention and signed by an authorized representative of the City
and Borrower.
10. Severability. If any term or provision hereof is iilegal or invalid for any reason
whatsoever, such illegality or invalidity shail not affect the validity and binding effect of
the remainder of this Note upon the parties.
11. Borrower's Waivers. Borrower waives any rights to require the City to perform certain
acts. Those acts are:
(a)
To demand payment of amounts due (known as "presentment").
Ib)
To give notice that amounts due have not been paid (known as
"notice of dishonor").
Ic)
To obtain an official certification of non-payment (known as
"protest").
12. Giving of Notices. Any notice that must be given to Borrower under this Note will be
given by delivering it or by mailing it first class mail or by certified mail, return receipt
requested, addressed to Borrower at the address set forth above. A notice that must be
given to the .City under this Note wiil be given by mailing it certified mail, return receipt
request, to the City at the address stated in Section 3 above. Any party may change its
address by a notice given to the other party in the manner set forth in this Section.
13. Joint and Several Responsibility. If more than one person executes this Note, each is
fuily and personaily obligated to pay the fuil amount owed and to keep ail promises in
this Note.
12- 27
251478-4
Date:
NOTICE TO BORROWER
Do not sign this Note if it contains blank spaces.
All spaces should be completed before you sign.
Borrower
Borrower
/2 - 2£
251478-4
EXHIBIT C
FORM OF SILENT SECOND TRUST DEED
EXHIBIT C
065"0-0009 251465.3 do<
/,2 - 7..1
WHEN RECORDED PLEASE MAIL TO:
City of Chula Vista
Community Development Department
Housing Division
276 Fourth Avenue
Chula Vista, CA 91910
THIS SPACE FOR RECORDER'S USE ONLY
APN: 000-000-00-00
FTHB #0000
NOTICE:
THIS DEED OF TRUST SECURES A SHARED APPRECIATION LOAN WITHIN
THE MEANING OF CIVIL CODE SECTION 1917, ET SEa.
DEED OF TRUST
(SHARED APPRECIATION)
THIS DEED OF TRUST, is made this - day of , 200_, among the Trustor(s) ,
(herein
"Borrower"), and the City of Chula Vista (herein "Beneficiary") a public body, corporate and politic,
whose address is 276 Fourth Avenue, Chula Vista, CA 91910.
This Deed of Trust is second and subsequent in lien to a First Deed of Trust recording concurrently
herewith in favor of the first lien holder, , a
in the amount of and
oohoo Dollars (herein "First Trust Deed");
BORROWER, in consideration of the indebtedness herein recited and the trust herein created,
irrevocably grants and conveys to (herein "Trustee"), in
trust, with power of sale, the following described property located in the City of Chula Vista, County
of San Diego, State of California [which has the address of property address here (herein "Property
Address")]:
SEE EXHIBIT HA" ATTACHED HERETO FOR LEGAL DESCRIPTION
TOGETHER with all the improvements now and hereafter erected on the Property, and all easements,
rights, appurtenances and rents (subject however to the rights and authorities given herein to
Beneficiary to collect and apply such rents), all of which shall be deemed to be and remain part of the
property covered by this Deed of Trust; and all of the foregoing, together with said property (or the
leasehold estate if this Deed of Trust is on a leasehold) are hereinafter referred to as the "Property";
TO SECURE to Beneficiary the repayment of the indebtedness evidenced by Borrower's promissory
note, dated ,200 and extensions and renewals thereof (herein "Note"), in the
principal sum of - and 00/'0 Dollars ($ ), with default interest thereon,
if any, and the Equity portion payable to Beneficiary as provided hereinafter, if not sooner paid, which
shall become immediately due and payable if all or any part of the Property or any interest in it is sold,
rented, refinanced, conveyed or transferred (or if a beneficial interest in Borrower is sold, rented,
1 251484-4
/2-30
refinanced, conveyed or transferred and Borrower is not a natural person), (each of which is called a
"Transfer") without the prior written consent of Beneficiary; the payment of all other sums, with
default interest thereon, if any, advanced in accordance herewith to protect the security of this Deed
of Trust; and the performance of the covenants and agreements of Borrower herein contained.
Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right
to grant and convey the Property, and that Borrower's subject property is unencumbered except for
encumbrances of record. Borrower covenants that Borrower warrants and will defend generally the
title to the Property against all claims and demands, subject to encumbrances of record.
UNIFORM COVENANTS
Borrower and Beneficiary covenant and agree as follows:
1. Payment of Principal and Default Interest. Borrower shall promptly pay when due the principal
indebtedness and accrued default interest, if any, evidenced by the Note and the portion of the
Equity payable by Borrower as provided in Paragraph 15 of this Deed of Trust.
If payment of the indebtedness is required due to a sale of the Property where the purchase price is
equal to or less than the acquisition cost of the Property, assuming an open and competitive sale,
then repayment shall be made in the following order and amount:
(a)
Outstanding principal and interest balance of the primary lender's loan;
(b)
Borrower's initial down-payment investment and normal cost of sale;
(c)
Accrued default interest, if any, on the principal amount of Beneficiary's loan at
the interest rate contained in the Note;
(d)
The principal amount of Beneficiary's loan; and
(e)
Any remainder to Borrower.
Borrower has the right to prepay the principal secured by this Deed of Trust without incurring any
penalty, apart from any interest that may be due under default provisions contained in the Note. In
the event that Borrower chooses to prepay the Note, Borrower must notify Beneficiary in writing.
Upon any such prepayment, Beneficiary's share of the Equity shall become immediately due and
payable to the Beneficiary.
2. Funds for Taxes and Insurance. To protect the security of this Deed of Trust, Borrower agrees to
pay, at least ten (10) days before delinquency, all taxes and assessments affecting said property;
when due, all encumbrances, charges and liens, with interest, on said property or any part thereof,
which appear to be prior or superior hereto; and all costs, fees and expenses of this Deed of Trust.
Should Borrower fail to make any payment or to do any act as herein provided, then Beneficiary,
without obligation to do so and without notice to or demand upon Borrower and without releasing
Borrower from any obligation hereof, may make or do the same in such manner and to such extent
as either may deem necessary to protect the security hereof, Beneficiary or Trustee being
authorized to enter upon said property for such purposes; appear in and defend any action or
proceeding purporting to affect the security hereof or the rights powers of Beneficiary or Trustee;
2
251484-4
/2 ~3 /
pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of
either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary
expenses, employ counsel and pay his/her reasonable fees.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by
Beneficiary under section 1 and 2 shall be applied; first, to any prepayment charges due under the
Note; second, to amounts payable under section 2; third, to accrued default interest, if any, due;
fourth, to principal due; and last, to any late charges due under the Note.
4. Prior Mortgages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrower's
obligations under any mortgage, deed of trust or other security agreement with a lien which has
priority over this Deed of Trust, including Borrower's covenants to make payments when due.
Borrower shall payor cause to be paid all taxes, assessments and other charges, fines and
impositions attributable to the Property which may attain a priority over this Deed of Trust, and
leasehold payments or ground rents, if any.
5. Hazard Insurance. Borrower shall keep the improvement(s} now existing or hereinafter erected on
the Property insured against loss by fire, hazards included within the term "extended coverage",
and such other hazards as Beneficiary may require and in such amounts and for such periods as
Beneficiary may require.
The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by
Beneficiary; provided, that such approval will not be unreasonably withheld. All insurance policies
and renewals thereof shall be in a form acceptable to Beneficiary and shall include a standard
mortgage clause in favor of and in a form acceptable to Beneficiary. Beneficiary has the right to
hold the policies and renewals thereof, subject to the terms of any mortgage, deed of trust or other
security agreement with a lien which has priority over this Deed of Trust.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Beneficiary.
Beneficiary may make proof of loss if not made promptly by Borrower.
If the Property is abandoned by Borrower, or if Borrower fails to respond to Beneficiary within
30 days from the date notice is mailed by Beneficiary to Borrower that the insurance carrier offers
to settle a claim for insurance benefits, Beneficiary is authorized to collect and apply the insurance
proceeds at Beneficiary's option either to restoration or repair of the Property or to the sums
secured by this Deed of Trust.
6. Preservation and Maintenance of Property, Condominium, Cooperatives, Planned Unit
Developments. Borrower will keep the Property in good repair and shall not commit waste or
permit impairment or deterioration of the Property and shall maintain property including the
principle house, garage, and out buildings as well as lawn maintenance, and shall comply with the
provisions of any lease if this Deed of Trust is on a leasehold. If this Deed of Trust is on a unit in a
condominium or a planned unit development (herein "PUD"), Borrower shall perform all of
Borrower's obligations under the declaration or covenants, conditions and restrictions, creating or
governing the condominium, PUD, the by-laws and regulations of the condominium or PUD, and
constituent documents.
7. Protection of Beneficiary Security. If Borrower fails to perform the covenants and agreements
contained in this Deed of Trust, or if any action or proceeding is commenced which materially
affects Beneficiary's interest in the Property, then Beneficiary, at Beneficiary's option, upon notice
to Borrower, may make such appearances, disburse such sums including reasonable attorneys'
3
251484-4
/ 2. ~..-3 2-
fees, and take such action as is necessary to protect Beneficiary's interest. If Beneficiary required
mortgage insurance as a condition of making the loan secured by this Deed of Trust, Borrower
shall pay the premiums required to maintain such insurance in effect until such time as the
requirement for such insurance terminates in accordance with Borrower's and Beneficiary's written
agreement or applicable law.
Any amounts disbursed by Beneficiary pursuant to this Paragraph, with interest thereon, at the
original Note rate, will become additional indebtedness of Borrower secured by this Deed of Trust.
Unless Borrower and Beneficiary agree to other terms of payment, such amounts will be payable
upon notice from Beneficiary to Borrower requesting payment thereof. Nothing contained in this
Paragraph will require Beneficiary to incur any expense or take any action hereunder.
8. Inspection. Beneficiary may make or cause to be made reasonable entries upon and inspections of
the Property, provided that Beneficiary will give Borrower notice prior to any such inspection
specifying reasonable cause therefor related to Beneficiary's interest in the Property.
9. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
connection with any condemnation or other taking the Property, or part thereof, or for conveyance
in lieu of condemnation, are hereby assigned and shall be paid to Beneficiary subject to the terms
of any mortgage, deed of trust or other security agreement with a lien which has priority over this
Deed of Trust.
10. Borrower Not Released; Forbearance by Beneficiary Not a Waiver. Extension of the time for
payment or modification of payment of the sums secured by this Deed of Trust granted by
Beneficiary to any successor in interest of Borrower shall not operate to release, in any manner,
the liability of the original Borrower and Borrower's successors in interest. Beneficiary shall not be
required to commence proceedings against such successor or to extend time for payment or
otherwise modify payment of the sums secured by this Deed of Trust by reason of any demand
made by the original Borrower and Borrower's successors in interest. Any forbearance by
Beneficiary in exercising any right or remedy hereunder, or otherwise afforded by applicable law,
shall not be a waiver of or preclude the exercise of any such right or remedy.
11. Successors and Assigns Bound, Joint and Several Liability; Co-signers. The covenants and
agreements herein contained shall bind, and the rights hereunder shall inure to, the respective
successors and assigns of Beneficiary and Borrower, subject to the provisions of Paragraph 15
hereof. All covenants and agreements of Borrower shall be joint and several. Any Borrower who
co-signs this Deed of Trust, but does not execute the Note:
(a)
Is co-signing this Deed of Trust only to grant and convey that Borrower's
interest in the Property to Trustee under the terms of this Deed of Trust,
(b)
Is not personally liable on the Note or under this Deed of Trust, and
(c)
Agrees that Beneficiary and any other Borrower hereunder may agree to
extend, modify, forbear, or make any other accommodations with regard to the
terms of this Deed of Trust or the Note, without that Borrower's consent and
without releasing that Borrower or modifying this Deed of Trust as to that
Borrower's interest in the Property.
12. Notice. Except for any notice required under applicable law to be given in another manner,
251~
/2 -33
any notice to Borrower provided for in this Deed of Trust shall be given by delivering it or by
mailing such notice by certified mail, addressed to Borrower at the Property address or such other
address as Borrower may designate by notice to Beneficiary as provided herein, and
(a)
Any notice to Beneficiary will be given by certified mail, return receipt
requested, to Beneficiary address stated herein or to such other address as
Beneficiary may designate by notice to Borrower as provided herein.
(b)
Any Notice provided for in this Deed of Trust shall be deemed to have been
given to Borrower or Beneficiary when given in the manner designated herein.
13. Governing Law. Severability. The state and local laws applicable to this Deed of Trust shall be the
laws of the jurisdiction in which the Property is located. The foregoing sentence shall not limit the
applicability of Federal law to this Deed of Trust. In the event that any provision or clause of this
Deed of Trust or the Note conflicts with applicable law. such conflict shall not affect other
provisions of this Deed of Trust or the Note which can be given effect without the conflicting
provision, and to this end the provisions of this Deed of Trust and the Note are declared to be
severable. As used herein, "costs", "expenses" and "attorneys' fees" include all sums to the
extent not prohibited by applicable law or limited herein.
14. Borrower's Copy. Borrower shall be furnished a conformed copy of the Note and this Deed of
Trust at the time of execution or after recordation hereof.
15. Transfer of the Property or a Beneficial Interest in Borrower. In the event of a Transfer or the
prepayment of the entire Note balance, the "Equity", as hereafter defined, in the Property shall be
shared between Borrower and Beneficiary on the following basis:
Occupancy Period (years) Beneficiary Equity Share Borrower Equity Share
Before 1 100% 0%
1-5 70% 30%
6-10 60% 40%
11-15 50% 50%
16-20 40% 60%
21-25 30% 70%
26-30 20% 80%
31-35 10% 90%
36-45 5% 95%
After 45 0% 100%
If, for example, the Property is sold in the first year through the fifth year of the term of the Note
secured by this Deed of Trust, Borrower shall receive thirty percent (30%) of the Equity in the
Property and Beneficiary shall receive seventy percent (70%) of the Equity. "Equity" is defined as
the dollar amount that constitutes the difference between the sales price of the Property and the
sum of the following amounts:
(a)
The principal on the First Note and the First Trust Deed, along with any interest
and fees due thereof; and
(b)
The principal on the Note secured by this Deed of Trust to the City of Chula
Vista, along with any fees due thereof; and
5 2514844
/2. --3¥
(c)
(d)
(e)
(f)
(g)
All costs of sale, including costs of brokers' commissions, escrow fees, title
costs and fees, recording costs, etc.; and
Current year taxes, including all real estate taxes prorated to the date of sale;
and
The down payment paid by Borrower when he/she/they purchased the
Property, not including the loan from Beneficiary to Borrower; and
The costs of any improvements to the Property, provided such improvements
were approved by the City of Chula Vista prior to construction and provided
that such improvements have been documented to the satisfaction of
Beneficiary; and
The costs of any Borrower-elected options and upgrades included in the
Property that are not included in the plans and specifications of standard
production units for which Borrower paid cash at the time Borrower purchased
the Property.
The amount of Borrower's share in the Equity of the Property shall increase by the percentages set
forth in the table above, measured on the anniversary date of this Deed of Trust. Correspondingly,
Beneficiary's share in the equity of the Property shall decrease by the percentages set forth in the
table above. For the sake of example, if the Property is sold more than five (5) but less than six
(6) years after the date of this Deed of Trust, Beneficiary would have a seventy percent (70%)
share in the equity and Borrower would have a thirty percent (30%) share in the Equity of the
Property.
In the event of a Transfer, the entire unpaid principal of the Note together with accrued default
interest thereon, if any, shall become immediately due and payable. The Equity payable to
Beneficiary is in addition to such unpaid principal and interest. In the event that no Equity exists at
the time of transfer or sale, full amount of the principal of the Note secured hereby shall be
required to be repaid to Beneficiary (item 14b above) will still be due and payable. In the event
that a negative Equity situation exists, and the full amount of the principal of the Note secured
hereby shall be required to be repaid to Beneficiary.
The following shall not constitute a Transfer:
(a)
A transfer of the Property from a deceased Borrower to the surviving spouse of
Borrower if the surviving spouse is also named as a Borrower;
(b)
A transfer of the Property by Borrower to his/her spouse pursuant to which the
spouse becomes a co-owner of the Property;
(c)
A transfer of the Property resulting from a decree of dissolution of the marriage
or legal separation or from a property settlement agreement incidental to such
a decree which requires Borrower to continue to make payments on the Note
and by which a spouse who is already a Borrower becomes the sole owner of
the Property;
2514844
12-35
(d)
A transfer of the Property by Borrower to an inter-vivos trust in which
Borrower is the sole beneficiary and which is done for estate planning purposes
only and does not result in any change in possession of the Property;
(e)
A refinancing to which Beneficiary under this Deed of Trust is obligated to
subordinate this Deed of Trust; and
(f)
A refinancing which does not result in cash excess paid to Borrower or which
is used for debt consolidation, equity line of credit or similar purposes.
Provided that Borrower is not in default under the terms of the Note or this Deed of Trust, no
interest shall accrue under the Note. Beneficiary shall not share any Equity unless the principal
balance of the Note is prepaid or becomes accelerated prior to the forty-fifth (45th) year after the
date of the execution of the Note, as provided in Section 5 of the Note. Nothing contained in this
Paragraph or Section 5 of the Note shall be construed as a promise by Beneficiary to forgive or
relinquish the right to seek repayment of the principal of the Note.
NON-UNIFORM COVENANTS
Borrower and Beneficiary further covenant and agree as follows:
16. Acceleration, Remedies. Upon Borrower's breach of any covenant or agreement of Borrower in
this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of
Trust, Beneficiary, prior to acceleration, shall give notice to Borrower as provided in Paragraph 12
hereof specifying:
(a)
(b)
(c)
(d)
The breach;
The action required to cure such breach;
A date, not less than 10 days from the date the notice is mailed to Borrower,
by which such breach must be cured; and
That failure to cure such breach on or before the date specified in the notice
may result in acceleration of the sums secured by this Deed of Trust and sale
of the Property.
The notice shall further inform Borrower of the right to reinstate after acceleration and the right to
bring a court action to assert the nonexistence of a default or any other defense of Borrower to
acceleration of sale. If the breach is not cured on or before the date specified in the notice,
Beneficiary, at Beneficiary's option, may declare all of the sums secured by this Deed of Trust to
be immediately due and payable without further demand and may invoke the power of sale and
any other remedies permitted by applicable law. Beneficiary shall be entitled to collect all
reasonable costs and expenses incurred in pursuing the remedies provided in this Paragraph,
including, but not limited to, reasonable attorneys' fees.
If Beneficiary invokes power of sale, Beneficiary shall execute or cause Trustee to execute a
written notice of the occurrence of an event of default and of Beneficiary's election to cause the
Property to be sold and shall cause such notice to be recorded in each county in which the
Property or some part thereof is located. Beneficiary or Trustee shall mail copies of such notice in
7
2514844
/2 -3'
the manner prescribed by applicable law. Trustee shall give public notice of sale to the persons
and in the manner prescribed by applicable law. After the iapse of such time as may be required
by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction
to the highest bidder at the time and place and under the terms designated in the notice of sale in
one or more parcels and in such order as Trustee may determine. Trustee may postpone sale of all
or any parcel of the Property by public announcement at the time and place of any previously
scheduled sale. Beneficiary or Beneficiary's designee may purchase the Property at any sale.
Trustee shall deliver to the purchaser Trustee's deed conveying the Property so sold without any
covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie
evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale
in the following order:
(a)
(b)
(c)
To all reasonable costs and expenses of the sale, including, but not limited to,
reasonable Trustee's and attorneys' fees and costs of title evidence;
To all sums secured by this Deed of Trust; and
The excess, if any, to the person or persons legally entitled thereto.
17. Borrower's Right to Reinstate. Not withstanding Beneficiary's acceleration of the sums secured by
this Deed of Trust due to Borrower's breach, Borrower shall have the right to have any
proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to
five days before sale of the Property pursuant to the power of sale contained in this Deed of Trust
or at any time prior to entry of a judgment enforcing this Deed of Trust if:
(a)
Borrower pays Beneficiary all sums, which would be then due under this Deed
of Trust, and the Note, had no acceleration occurred;
(b)
Borrower cures all breaches of any other covenants or agreements of Borrower
contained in this Deed of Trust;
(c)
Borrower pays all reasonable expenses incurred by Beneficiary and Trustee in
enforcing the covenants and agreements of Borrower contained in this Deed of
Trust, and in enforcing Beneficiary's and Trustee's rights as provided in
Paragraph 15 hereof, including, but not limited to, reasonable attorneys' fees;
and
(d)
Borrower takes such action as Beneficiary may reasonably require to assure
that the lien of this Deed of Trust, Beneficiary's interest in the Property and
Borrower's obligation to pay the sums secured by this Deed of Trust shall
continue unimpaired.
Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby
shall remain in full force and effect as if no acceleration had occurred.
18. Reconveyance. Upon payment of all sums secured by this Deed of Trust, Beneficiary shall request
Trustee to reconvey the Property and will surrender this Deed of Trust and all Notes evidencing
indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property
2&1484-4
/2 -37
without warranty and without charge to the person or persons legally entitled thereto.
person or persons shall pay all costs of recordation, if any.
Such
19. Substitute Trustee. Beneficiary, or any SUCcessor in ownership of any indebtedness secured
hereby, may from time to time appoint a successor trustee to any Trustee appointed hereunder by
an instrument executed and acknowledged by Beneficiary and recorded in the office of the
Recorder of the county where the Property is located. The instrument shall contain the name of
the original Lender, Trustee and Borrower, the book and page where this Instrument is recorded
and the name and address of the successor trustee. The successor trustee shall, without
conveyance of the Property, succeed to all the title, power and duties conferred upon the Trustee
herein and by applicable law. This procedure for substitution of trustee shall govern to the
exclusion of all other provisions for substitution.
20. Request for Notices. Borrower requests that copies of the Notice of Default and Notice of Sale be
sent to Borrower's address, which is the Property Address. Beneficiary requests that copies of
notices of foreclosure from the holder of any lien which has priority over this Deed of Trust be sent
to Beneficiary's address, as set forth on Page One of this Deed of Trust as provided by Section
2924b of the Civii Code of California.
21. Fee for Requested Statements. Beneficiary may charge a fee not to exceed Sixty Dollars ($60.00)
for furnishing the statement of obligation as provided in Section 2943 of the Civil Code of
California.
22. Deed of Trust Rider. The Deed of Trust Rider (if any) executed by Borrower is attached and made
part of this Deed of Trust.
23. Warranties of Borrower. Borrower warrants to Beneficiary that Borrower is qualified to purchase
the Property pursuant to the criteria set forth in City Councii Policy No. 435-02 (Development of
Affordable for Sale Housing for Low-Income Buyers), which became effective on December 9,
2003.
24. Subordination To First Deed of Trust. Beneficiary and Borrower acknowledge and agree that this
Deed of Trust is subject to and will subordinate in all respects to the liens, terms, covenants and
conditions of the First Trust Deed recorded prior to this Deed of Trust, which secures the
institutional loan as evidenced by a promissory note (herein "First Note"), the proceeds of which
were used by Borrower to purchase the Property and to all advances heretofore made or which
may hereafter be made pursuant to the First Trust Deed including all sums advanced for the
purpose of:
(a)
Protecting or further securing the lien of the First Trust Deed, curing defaults
by Borrower under the First Trust Deed or for any other purpose expressly
permitted by the First Trust Deed, and
(b)
Constructing, renovating, repairing, furnishing, fixturing or equipping the
Property.
The terms and provisions of the First Trust Deed are paramount and controlling, and they
supersede any other terms and provisions hereof in conflict therewith. In the event of a
foreclosure of deed in lieu of foreclosure of the First Trust Deed, any provisions herein or any
provision in any other collateral agreement restricting the use of the Property to low or moderate
9
251484-4
12 -37
his/her successors or assigns (other than Borrower or a related entity of Borrower), receiving title
to the Property through a foreclosure or deed in lieu of foreclosure of the First Trust Deed shall
receive title to the property free and clear from such restrictions.
Further, if the First Trust Deed Beneficiary acquires title to the Property pursuant to a deed in lieu
of foreclosure, the lien of this Deed of Trust shall automatically terminate upon the First Trust Deed
Beneficiary's acquisition of title, provided that:
(a)
Beneficiary has been given written notice of a default under the First Trust
Deed, and
(b)
Beneficiary shall not have cured the default under the First Trust Deed, or
diligently pursued curing the default as determined by the First Trust Deed
holder, within the 50-day period provided in such notice sent to Beneficiary.
Beneficiary and Borrower further acknowledge and agree that this Deed of Trust will only
subordinate for a rate and term refinance of the First Trust Deed at the discretion of Beneficiary
and shall not be subject to subordination for a cash out refinance, equity line of credit or any other
such form of refinance as deemed inappropriate by Beneficiary.
25. Subordination To Refinancing First Trust Deed. Beneficiary agrees to subordinate this Deed of
Trust to a new first deed of trust, the proceeds of which are to refinance the First Trust Deed loan,
provided that the new loan is not in an amount in excess of the then existing First Trust Deed loan
plus costs of the refinancing; that is a refinancing which does not result in cash excess or which is
used for debt consolidation, equity line of credit or similar purposes. The new loan to be
subordinated to must be at a fixed interest rate and fully amortized over a term of not less than
thirty (30) years.
25. Funds for Taxes and Insurance. Beneficiary will waive collection of impounds for taxes and
assessments (including condominium, PUD and planned residential development assessments, if
any). Borrower will make all payments for impounds to the First Trust Deed holder.
27. Riders to this Deed of Trust. If one or more riders are executed by Borrower and recorded together
with this Deed of Trust, the covenants and agreements of each such rider shall be incorporated
into and shall amend and supplement the covenants and agreements of this Deed of Trust as if the
rider(s) were a part of this Deed of Trust. [Check applicable box(es)]
0 Transfer Rider
0 1-4 Family Rider
0 Other(s) [specify]:
0 Condominium Rider
0 PUD Rider
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Deed
of Trust and in any rider(s) executed by Borrower and recorded with it.
10
251484-4
/2 -39
ACKNOWLEDGMENT:
State of California
County of San Diego
On
before me,
. Notary, personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/herltheir signature(s) on the
instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature:
11
251484-4
/2 -'10
DO NOT RECORD THIS PAGE
REQUEST FOR RECONVEYANCE
TO TRUSTEE:
The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes,
together with ail other indebtedness secured by this Deed of Trust, have been paid in full. You are
hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to
reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or
persons legally entitled thereto.
Dated:
DO NOT LOSE OR DESTROY THIS DEED OF TRUST OR THE NOTE WHICH IT SECURES. BOTH MUST
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION BEFORE RECONVEYANCE WILL BE MADE.
12
251484-4
I 2-~¿/ I
A CONDOMINIUM COMPRISED OF:
EXHIBIT "A"
LEGAL DESCRIPTION
13
251484-4
/2-'1-2-
CONDOMINIUM RIDER
THIS CONDOMINIUM RIDER is made this - day of , 200_, and is incorporated into and
shall be deemed to amend and supplement the Deed of Trust (Shared Appreciation) ("Deed of Trust")
and the Promissory Note ("Note") of the same date herewith given by the undersigned ("Borrower") to
secure Borrower's performance under the Note in favor of the City of Chula Vista, a municipal
corporation ("City") and covering that certain real property described in the Deed of Trust ("Property")
and located at:
(Property Address)
The Property includes a unit in, together with an undivided interest in the common elements of, a
condominium project known as:
(Name of Condominium Project)
("Condominium Project"). If the owners association or other entity which acts for the Condominium
Project ("Owners Association") holds title to property for the benefit or use of its members or
shareholders, the Property also includes Borrower's interest in the Owners Association and the uses,
proceeds and benefits of Borrower's interest therein.
CONDOMINIUM COVENANTS
In addition to the covenants and agreements made in the Deed of Trust, Borrower and City further
covenant and agree as follows:
1. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the
Condominium's Constituent Documents. The "Constituent Documents" are the (i) declaration of
covenants, conditions and restrictions; (Ii) articles of incorporation, trust instrument or any
equivalent document which creates the Owners Association; and (Iii) any by-laws or other rules or
regulations of the Owners Association. Borrower shall promptiy pay, when due, all dues and
assessments imposed pursuant to the Constituent Documents.
2. Property Insurance. So long as the Owners Association maintains, with a generally accepted
insurance carrier, a "master' or "blanket" policy insuring the Property which is satisfactory to City
and which provides insurance coverage in the amounts (Including deductible levels) for the periods,
and against loss by fire, hazards included within the term "extended coverage," and any other
hazards, including but not limited to, earthquakes and floods, for which City requires insurance,
then: (I) City waives the provision for the periodic payment to City of the yearly premium
installments for property insurance on the Property; and (ii) Borrower's obligation under
Paragraph 5 of the Deed of Trust to maintain property insurance coverage on the Property is
deemed satisfied to the extent that the required coverage is provided by the Owners Association
policy.
(a)
What City requires as a condition of this waiver can change during the term of
the loan.
14
Z51484-4
12--'-13
(b)
Borrower shall give City prompt notice of any lapse in required property
insurance coverage provided by the master or blanket policy.
(c)
In the event of a distribution of property insurance proceeds in lieu of
restoration or repair following a loss to the Property, or to common areas and
facilities of the planned unit development ("PUD"), any proceeds payable to
Borrower are hereby assigned and shall be paid to City. City shall apply the
proceeds to the sums secured by the Deed of Trust, whether or not then due,
with the excess, if any, paid to Borrower.
3. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the
Owners Association maintains a public liability insurance policy acceptable in form, amount, and
extent of coverage to City.
4. Condemnation. The proceeds of any award or ciaim for damages, direct or consequential, payable
to Borrower in connection with any condemnation or other taking of all or any part of the Property
or the common areas and facilities of the PUD, or for any conveyance in lieu of condemnation, are
hereby assigned and shall be paid to City. Such proceeds shall be applied by City to the sums
secured by the Deed of Trust as provided in Paragraph 9 of the Deed of Trust.
5. City's Prior Consent. Borrower shall not, except after notice to City and with City's prior written
consent, either partition or subdivide the Property or consent to: (I) the abandonment or termination
of the PUD, except for abandonment or termination required by law in the case of substantial
destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain;
(ii) any amendment to any provision of the "Constituent Documents" if the provision is for the
express benefit of City; (Iii) termination of professional management and assumption of self-
management of the Owners Association; or (iv) any action which would have the effect of
rendering the public liability insurance coverage maintained by the Owners Association
unacceptable to City.
6. Remedies. If Borrower does not pay PUD dues and assessments when due, then City may pay
them. Any amounts disbursed by City under this Paragraph 6 shall become additional debt of
Borrower secured by the Deed of Trust. Unless Borrower and City agree to other terms of
payment, these amounts shall bear interest from the date of disbursement at the Note default rate
and shall be payable, with such accrued interest, upon notice. from City to Borrower requesting
payment.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this
Condominium Rider.
Date:
Date:
15
251484-4
/¿2. -'ILf
EXHIBIT D
FORM OF SUPPLEMENTAL BUYER APPLICATION
EXHIBIT D
/ :2 -'15
..",0-0009 251465.3 do,
Dear Applicant:
Thank you for your application to the TriM ark Pacific Mar Brisa project. The
successful completion of the application process may result in your being qualified
for an Affordable Housing Unit. Therefore, it is very important that you take the
time to read and understand the Program Requirements and that you complete the
Application and attach all required documentation.
Mar Brisa at San Miguel Ranch
Mar Brisa offers row homes from approximately 1,303 to 1,912 sq. ft.
Each unit has a garage, 2-4 bedrooms, and 1.5-3 baths. Community amenities
include picnic/barbeque facilities and access to a public trail system.
Mar Brisa will include 70 Affordable Units.
2 bedrooms 1.5 bath (1,303 sq ft)
3 bedrooms 2-3 bath (1,790 sq ft)
4 bedrooms 2.5 bath (1,912 sq ft)
The Affordable Housing Units will be sold at the market rate price, but the City will
provide a silent second loan for the difference between the market rate price and
the Affordable Housing Unit Price as determined by your household income,
APPLICATIONS WILL BE ACCEPTED UNTIL AUGUST 1.
NO LATE OR INCOMPLETE APPLICATIONS WILL BE CONSIDERED,
AFFORDABLE HOUSING UNITS
The City of Chula Vista has established an Affordable For Sale Housing Policy that
governs all affordable for sale housing units constructed within the City. In order
to qualify to purchase an Affordable Housing Unit, applicants must meet ALL of
the requirements outlined within this document. Please do NOT submit an
application if you do not meet ALL of the requirements,
Income restrictions apply. Please refer to the chart below for the MAXIMUM gross
income based upon household size, which is defined as the total number of people
residing within the household. Gross income is the total amount of income earned
by all persons, over the age of 18, within the household before all standard
withdrawals (including federal tax, state tax, social security, etc.)
Household 1 2 3 4 5 6 7
Size
Maximum $38,350 $43,850 $49,300 $54,800 $59,200 $63,500 $67,950
Gross
Income
/2 --'-If:,
AFFORDABLE HOUSING PROGRAM REQUIREMENTS
.
Buyer must be a First time Homebuyer, which is defined as a person who
has not had ownership interest in their primary residence within the last
three years
.
Have an annual gross income that does not exceed the program limits as
described earlier
.
Have sufficient funds available to contribute the required down payment of
three percent (3%) of the Affordable Purchase Price plus closing costs
.
Maximum liquid assets after down payment and closing cost contribution
must not exceed $25,000.
.
Property must be owner-occupied for the duration of ownership.
may not rent or lease out the property.
Buyers
.
Must be able to qualify for the loan with the incomes of only the members
who will occupy the Affordable Unit. Non-occupant co-borrowers are NOT
allowed.
.
Be a citizen or other national of the United States or a qualified alien as
defined by the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (PRWORA)
.
Attend a qualified "Home Training Program" or "First Time Home Buyer
Program" and provide evidence to the City and to the lender of their
attendance.
.
Meet credit, income and loan requirements of the lender and the mortgage
insurer.
.
Be pre-qualified by Wells Fargo Mortgage in order to purchase an Affordable
Unit. Be advised that you may obtain a mortgage from any lender, but due
to the extensive requirements for this Affordable Housing Development
many lenders may have difficulty qualifying you.
TriMark Affordable Housing Units
Page
2
/1. - '17
BUYER SELECTION CRITERIA
The Developer will use the following criteria in order to determine priority for
purchase of an Affordable Unit. A point system has been established so that
applicants with a higher number of points will receive preference for units.
5 points
3 points
2 points
1 point
Households which are displaced from their primary residence as a
result of any of the following: (i) expiration of affordable housing
covenants applicable to such residence; Iii} an action of City or
Agency; (iii) closure of a mobilehome or trailer park community in
which the household's residence was located; or (iv) a condominium
conversion involving the household's residence. One member in the
households must have resided in such housing as the primary place of
residence for at least one year prior to such action or event.
Households with at least one member who has worked within the City
of Chula Vista, as that person's principal place of full-time
employment, for at least one year prior to the date of application for
such housing.
Households with at least one member who is a Public Safety
employee (fire and police) or Credentialed Teacher.
All other applicants who do not meet any of the above criteria.
In the situation where there are applicants with an equal number of points but not
enough units available, a lottery will be held at a place and time to be announced
by the City and TriMark Pacific.
In addition to the established point system, consideration for units will be given to
larger families based upon the number of bedrooms per unit. Please be advised
that you will be required to verify each household member that you indicate will
occupy the unit.
AFFORDABLE HOUSING RESTRICTIONS
The purpose of this program is to provide affordable homeownership opportunities
for low-income households and to ensure that upon sale of the "affordable" unit
the City of Chula Vista receives adequate funds to continue to promote affordable
homeownership programs throughout the City.
Therefore, if you purchase an Affordable Unit a Second Trust Deed restriction will
be placed on the property. When you sell the Affordable Unit you will have to
repay the amount of the Second Trust Deed plus a portion of the equity with the
City of Chula Vista based upon the length of time that you have occupied the
Affordable Unit. The longer you live in the Affordable Unit the less equity you
have to share with the City. Regardless of when you sell the Affordable Unit you
TriMark Affordable Housing Units Page 3
/'2 -Llf
are ALWAYS responsible for repayment of the Second Trust Deed amount. Please
refer to the chart below for equity share information.
Occupancy Period City Homeowner
(years) Equity Share Equity Share
1-5 70% 30%
6-10 60% 40%
11-15 50% 50%
16-20 40% 60%
21-25 30% 70%
26-30 20% 80%
31-35 10% 90%
36-45 5% 95%
EXAMPLE
Assuming that a family of three purchases a two-bedroom unit for the market rate
value of $250,000. The household would qualify for the maximum allowable
purchase price of $170,421 (Table 2) and the Developer/Builder would provide a
Silent Second Loan in favor of the City for the difference between the market rate
price and the maximum allowable purchase price equaling $79,579 (Table 3).
Five years later, assuming a sales price of $350,000, the Homeowner decides to
sell the property. The Homeowner would receive their initial downpayment amount
of $5,112 plus $28,000 (8% of the sales price) as reimbursement for the costs
associated with the sale of the property plus their equity share amount of
$26,193, which is 30% of the remaining equity. The Homeowner would make full
payment to the City on the principal of the Silent Second Loan ($79,579) PLUS
70% of the remaining equity based upon the length of occupancy (Table 4).
Therefore, the total amount repaid to the City upon resale would be $140,695.
EXAMPLE TABLE
Current Sales Price (5 years later)
Equity
$
1st Loan $
2nd Loan $
Borrower's Investment (Initial DP= 3% of $170,421 +Costs of Sale 8% of sales price) $
$
Times Equity Share Percentage
Equity Share (City)
TriMark Affordable Housing Units
1'2 ~. L/4
, . f
$
S
S
350,000
(150,000)
(79,579)
(33,112)
87,309
70.0%
61,116.30
140,695
59,305
Page
4
MORTGAGE LENDER REQUIREMENTS
.
Buyers must have good credit history and good credit scores.
Buyers must have good job history and steady income,
.
.
Buyers must have enough stable and documented income for the proposed
housing payment in addition to any current monthly debt.
APPLICATION REVIEW PROCESS
.
Applicants will be contacted by TriM ark Pacific sales staff via U.S. mail
acknowledging receipt of complete application and supporting
documentation. TriMark Pacific and the City will review all applications to
determine eligibility.
.
Eligible applications will be forwarded to Wells Fargo Mortgage, Inc. to be
reviewed for eligibility. Please be advised that your financial information will
be reviewed for two different purposes:
To determine that your household annual income does NOT exceed
the maximum allowed by the City of Chula Vista for the Affordable
Housing Purchase. ALL income will be considered for all persons
living in the home who are 18 years or older, even if the income is not
taxable income.
To determine if your income, employment history and credit rating are
sufficient to qualify for a mortgage. Only the income for those adults
who will occupy the home and be the recipients of the mortgage loan
is used in determining qualification for a mortgage
Before you submit your complete application and supporting documentation please
ask yourself the following questions. Do you:
Meet ALL the program requirements?
Have a good credit rating?
Have stable job time and income?
Have funds for the 3% down payment and closing costs?
.
.
.
.
If you have answered yes to ALL the above questions.........
Fill out the attached application and submit it plus ALL required documentation and
MAIL to:
TriMark Pacific
ATTN: Mar Brisa Development
85 Argonaut, Suite 205
Aliso Viejo, CA 92656
TriMark Affordable Housing Units
Page
5
;.., SO
AFFORDABLE HOUSING UNIT APPLICATION
APPLICANT #1
First Name
Middle
Last Name
Social Security Number
Age
(2) APPLICANT
First Name
Middle
Last Name
Social Security Number
Age
HOUSEHOLD INFORMATION: List all household members that will reside in the Affordable Housing
Unit
Total # of persons in Household
Total yearly Household Income $
M/F
--
--
Name
Age
Name
Age
M/F
M/F
--
--
Name
Age
Name
Age
M/F
M/F
--
--
Name
Age
Name
Age
M/F
Name
M/F
--
--
Age
Name
Age
M/F
BUYER SELECTION CRITERIA INFORMATION: If you respond YES to any of the questions
below, you MUST provide written evidence with your application or you will not receive
the appropriate amount of points necessary to qualify.
1 )
Did you have to leave your most recent PRIMARY residence due to either: 1) the
expiration of affordable housing covenants; 2) an action of the City of Chula Vista or
its Redevelopment Agency; 3) closure of the mobilehome park that you resided in; or
4) the conversion from rental condominiums to for-sale condominiums. Please note
that in order for you to be eligible under this category at least one member of your
household must have resided in the unit for at least one year.
0 Yes
0
No
2)
Do you have one member of your household whose principal place of full-time
employment is located within the City of Chula Vista?
0 Yes
0
No
3)
Do you have any member of your household is a Public Safety employee (fire and
police) or credentialed teacher?
0 Yes 0 No
TriMark Affordable Housing Units
Page
6
I:..> :;;
AFFORDABLE HOUSING UNIT CHECKLIST
This checklist contains a list of documents that you are REQUIRED to submit,
along with the completed Application as part of the application review process.
Please review the list carefully and include COPIES of all documents that you are
submitting. If there are any documents listed that you do not believe you are
required to submit please indicate N/A and state the reason why the information is
not attached. You must attach this signed checklist as part of your application
packet.
0 Six months of most current and consecutive bank/investment/retirement
statements for ALL accounts (all pages)
0 Most recent paycheck stubs covering a 30-day period for each borrower
0 Most recent two (2) years W-2s and/or 1 099s for each borrower
0 Most recent two (2) years Federal Tax Returns for each borrower (all
schedules)
0 Complete divorce decree(s) with all attachments, if applicable
0 Complete bankruptcy papers with all schedules and discharge papers for
bankruptcies within the last 7 years, if applicable
0 Name and phone number of Real Estate Agent, if applicable
0 Copy of Green Card, front and back, if applicable or other appropriate proof
of legal U,S. residency
If self-employed, also provide the following:
0 Most recent two (2) years tax returns and copies of 1040s, W-2s, 1099s
and/or K-1 s for each borrower
0 Limited or General Partnership returns (if ownership interest is 25% or
greater)-copies of form 1065
0 Sub Chapter S Corporation returns (if ownership interest is 25% or greater)-
copies of form 1120 S
0 U.S. Corporation returns (if ownership interest is 25% or greater)- copies of
form 1120
0 YTD Profit and Loss Statement (in some cases this may need to be audited)
TriMark Affordable Housing Units
Page
7
/2 -5'2-
AFFORDABLE HOUSING UNIT AFFIDAVIT
By signing below each applicant makes the following certifications:
I, the undersigned, as part of my application for an Affordable Housing Unit within
the TriM ark Pacific Mar Brisa development (the "Program"), and in connection with
a purchase of a single-family home (the "Residence") and an application for a
mortgage loan (the "Mortgage loan") from a lender (the "lender") of my choosing,
do hereby state that I have carefully reviewed this document. I understand and
agree with the answers on Pages One and Two, and do furthermore certify the
following:
1.
2.
3.
4.
5.
6.
That those people who I expect to share occupancy of the Residence with
me are listed on Page One of the Application.
That my spouse, whether on title or not, is an Applicant for the Program and
must sign this Application.
That I am a first-time home buyer, who has not had an ownership interest in
a principal residence within the three years immediately preceding the date
of this application, and I do not and will not have an ownership interest in a
principal residence prior to the date of loan closing. (A principal residence
includes a single-family residence, a condominium, share in a housing
cooperative, any manufactured home or mobilehome, or occupancy in a
multifamily residence owned by me. An ownership interest means
ownership by any means, whether outright or partial, including property
subject to mortgage or other security interest; it also includes a fee simple
ownership interest, a joint ownership interest by joint tenancy in common, or
tenancy by the entirety or a life estate interest.)
That I will submit true and complete copies of all requested documentation.
That the Residence will be occupied and used as my principal place of
residence within 30 days of the date of Mortgage loan closing.
That the Residence will not be used as an investment property, vacation
home or recreation home
That I will notify the Program in writing if the Residence ceases to be my
principal residence.
That the Mortgage loan is a first mortgage, not a replacement mortgage.
That my income does not exceed the program income limits
That no person related to me has, or is expected to have, an interest as a
creditor in the Mortgage loan being acquired for the Residence.
That the City loan is issued on my behalf and may not be transferred.
That I may seek financing from any lender of my choosing, and that I am in
no way prohibited from seeking financing from any potential lender, so long
as the lender executes and complies with the terms of the Program
Guidelines.
7.
8.
9.
10.
11.
12.
TriMark Affordable Housing Units
Page
8
12--53
AFFORDABLE HOUSING UNIT CERTIFICATION
I acknowledge and understand that this Affidavit, as completed above, will be
relied on for determining my eligibility for An Affordable Housing Unit. I
acknowledge that a material misstatement negligently made by me in this Affidavit
or in any other connection with my Application for an Affordable Housing Unit will
constitute a violation punishable by a fine and possible criminal penalties imposed
by law, and will result in the cancellation or revocation of the Loan. I acknowledge
that any false statement or misrepresentation or the fraudulent use of any
instrument, facility, article, or other valuable thing or service pursuant to my
participation in the Program is punishable by fine.
BUYER
DATE
BUYER
DATE
BUYER
DATE
BUYER
DATE
TriMark Affordable Housing Units
Page
9
/2-5'-1
SCHEDULE 1
LIST OF MARKET RATE PRICES
SCHEDULE 1
""'0-0009 251465.3 do<
/2--5t;;
COUNCaAGENDASTATEMENT
Item~
Meeting Date: 6/15/2004
ITEM TITLE:
Resolution Appropriating $300,000 from the available balance of
the General Fund and establishing new Capital Improvement Project No.
GG186 for the removal of the underground fuel storage tanks and
contamination remediation and related work at 707 F Street, and awarding
a contract for $26,000 to Jenal Engineering for tank removal and awarding
a contract for $48,000 to Sub-Surface Waste Management, Inc. for the
Phase II environmental assessment investigation
SUBMITTED BY: Director of Public Works Operations ~~.II
Director of Community DeVelOpmeW~ .f,t I
REVIEWED BY: CityManage6pv(Y' (4/5thsVote: Yes-Ã-No_)
The fuel island and the two underground fuel tanks at 707 F Street do not meet state regulations
as defined in state law SB989 and must be removed. This resolution will create the CIP to
accomplish this work and appropriate funds to remove the fuel island and tanks and remediate
contaminated soil. The City ceased utilizing this fuel island in January of this year.
RECOMMENDATION: That the City Council appropriate $300,000 from the available
balance of the General Fund and establish a new Capital Improvement Project No. GG 186 for
the removal of the underground fuel storage tanks and contamination remediation and related
work at 707 F Street, awarding a contract for $26,000 to Jenal Engineering for tank removal and
awarding a contract for $48,000 to Sub-Surface Waste Management, Inc. for the Phase II
environmental assessment investigation.
BOARD/COMMISSION RECOMMENDATION: Not Applicable
DISCUSSION:
The property at 707 F Street was the City's Corporation Yard from 1963 until the opening of the
John Lippitt Public Works Center in April of 2002. The property lies within a redevelopment
district, and its best re-use is currently being evaluated. The existing fuel tanks date to 1978, and
it is possible that there may be some soil contamination in the area near the tanks. City fueling
operations stopped at this site in January of 2004. The San Diego County Department of Health,
Hazardous Material Division, has directed that the City of Chula Vista remove the fuel island
and tanks.
City staff has already conducted Phase I of the environmental assessment in preparation for the
eventual sale of this site. As a result of this Council action, funds would be appropriated to
prepare a Phase II investigation. Upon completion of the Phase II investigation, staff will return
13-1
Item~
Meeting Date: 6/15/2004
to Council to appropriate additional funds for the demolition of the remaining portions of the
former corporation yard facilities. This resolution will not preclude Council from proceeding
with the redevelopment plans for this property.
Informal bids were requested from three companies for the removal of the underground fuel
storage tanks and for the Phase II investigation of the environmental assessment. Jena!
Engineering, a company that has done extensive fuel island work for the city, was the apparent
low bidder for the tank removal. Sub-Surface Waste Management, the company that performed
the Phase I environmental assessment, was the apparent low bidder for the Phase II investigation.
FISCAL IMPACT:
Sufficient funds are available in the available balance of the General Fund for this appropriation.
Should the City eventually sell the property to another entity, the General Fund win be
reimbursed for all costs associated with this work and the future demolition efforts.
Attachment: .
Estimate of Repair Costs for Tank Removal and Repair at 707 F Street
H,lPublic Works OperationslAl13's 2004IAl13 707 fuel island 04 revisions.doc
/3- ?-
Estimate of Repair Costs for Tank Removal and Repair at 707 F Street
Item Estimate Description Comments
1 $26,000 Remove 10,000 gallon This does not include
unleaded tank, remove 12,000 any cost associated
gallon diesel tank, remove fuel with contamination.
island and tank slabs, backfill
the excavation, and cover with
asphalt.
2 $48,000 Phase II environmental Phase II is an
assessment investigation. extensive
investigation to
determine the
possibility of other
sites of contamination.
3 $26,000 Four to five additional ground The ground water is
water monitoring wells. contaminated with
MBTE, and these
wells are required to
delineate the pollution.
4 $100,000 Soil contamination around the This is an estimate of
fuel tanks that will be removed the cost to remove the
contaminated soil,
stockpile it , and
remediate the soil or
transport it to a
certified facility that
will accept it.
5 $75,000 Remediation of contaminated This will be a lengthy
ground water. process of monitoring
the ground water after
the source of the
contamination is
removed. The
suspected source is
the unleaded tank
excavation and fuel
runoff from the fuel
island.
6 $25,000 Contingencies The fuel island dates
to the 1960's, and
there will be
unknowns.
H:IPublic Works Operations\A113's 2004\Estimate of Repair 707 (attachment).doc
J3~3
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROPRIATING $300,000 FROM THE
AVAILABLE BALANCE OF THE GENERAL FUND AND
ESTABLISHING NEW CAPITAL IMPROVEMENT PROJECT
NO. GGI86 FOR THE REMOVAL OF THE UNDERGROUND
FUEL STORAGE TANKS AND CONTAMINATION
REMEDIATION AND RELATED WORK AT 707 F STREET,
AND AWARDING A CONTRACT FOR $26,000 TO JENAL
ENGINEERING FOR TANK REMOVAL AND AWARDING A
CONTRACT FOR $48,000 TO SUB-SURFACE WASTE
MANAGEMENT INC. FOR THE PHASE II ENVIRONMENTAL
ASSESSMENT INVESTIGATION
WHEREAS, the property at 707 F Street was the City's Corporation Yard from
1963 until the opening of the John Lippitt Public Works Center in April of2002; and
WHEREAS, the fuel island and the two underground fuel tanks at 707 F Street
should be removed pursuant to regulations as a defined in state law SB989; and
WHEREAS, the City ceased utilizing the fuel island in January of this year; and
WHEREAS, this resolution will create a CIP to accomplish this work and
appropriate funds to remove the fuel island and tanks, and remediate contaminated soil.
WHEREAS, informal bids were received for removal of the underground fuel
storage tanks and for the Phase II environmental assessment; and
WHEREAS, Jenal Engineering was the apparent low bidder for the tank removal
and Sub-Surface Waste Management was the apparent low bidder for the Phase II investigation.
NOW, THEREFORE, BE IT RESOLVED that the City Council of City of Chula
Vista does hereby appropriate $300,000 from the available balance of the General Fund and
establishing new Capital Improvement Project No. GG 186 for the removal of the underground fuel
storage tanks and contamination remediation and related work at 707 F Street, and awarding a
contract for $26,000 to Jenal Engineering for tank removal and awarding a contract for $48,000 to
Sub-Surface Waste Management, Inc., for the Phase II environmental assessment investigation.
Presented by
Approved as to form by
/3al ¥~~
Ann Moore
City Attorney
Dave Byers
Director of Public Works Operations
J:/attomeyhesoJ707 F Street
/3-tf
COUNCIL AGENDA STATEMENT
Item--1L
Meeting Date: 6/15/2004
ITEM TITLE:
Resolution Appropriating $300,000 from the available balance
of the General Fund and establishing new Capital Improvement Project
No. GG 187 for the replacement of two underground fuel storage tanks and
the replacement of various underground piping at the John Lippitt Public
Works Center
SUBMITTED BY: Director OfPUb~~ Works Operations/!
REVIEWED BY: City Manager~~ ~ïr' (4/5ths Vote: Yes--X- No -)
One of underground fuel storage tanks located at the John Lippitt Public Works Center did not
pass the test as defined in state law SB989 and now must be removed. A second tank that was
installed in 1988 by SDG&E will be replaced as well. After the Public Works Center was
constructed, state regulations regarding underground fuel tanks were revised and as a result, the
underground piping must also be replaced. This resolution will create the CIP to accomplish this
work and appropriate the necessary funds.
RECOMMENDATION: That the City Council appropriate $300,000 from the available
balance of the General Fund, and establish new Capital Improvement Project No. GGl87 for the
replacement of two underground fuel storage tanks and the replacement of various underground
piping at the John Lippitt Public Works Center
BOARD/COMMISSION RECOMMENDATION: Not Applicable
DISCUSSION:
During the construction of the John Lippitt Public Works Center, a new 10,000-gallon
underground storage tank (UST) was installed, and two USTs that were installed in 1988 were
reused. SB989 is the state senate bill that requires the secondary interstitial space (the space
between the inner and outer walls of a two-wall tank) to be tested for leaks. All of the tanks
passed the SB989 test during construction of the Public Works Center. However, the 20,000-
gallon UST failed during the required six-month retest. The tank was emptied and placed in
temporary closure status with the San Diego County Department of Health. Subsequent
investigation has revealed that there is a breach in the secondary wall (the outer wall) at the
bottom of the tank near the south end. It was the opinion of the excavation contractor that the
breach in the secondary was not caused by the recent construction, and that the problem could
have existed since the original installation in 1988. The tank cannot be repaired without
removing it out of the ground.
Even if the City decided not to repair the tank and use alternate fueling sources, the San Diego
County Department of Health still requires that the tank be removed. The tank is approximately
/'1-/
Item~
Meeting Date: 6/15/2004
ten feet in diameter and 38 feet long, and its removal will require that the entire tank slab (the
concrete over all the tanks) be removed. In addition, most of the gravel backfill in the tank
excavation will have to be removed to prevent cave-ins. The other tank that was installed in
1988, which lays adjacent to the tank being removed, will be mostly uncovered during this
operation.
New regulations anticipated to go into effect in 2006, require that the two tanks that were
installed in 1988 either be extensively modified or replaced. The modifications, at the very least,
would be costly and would require demolition of most of the tank slab to expose the tops of the
tanks to make the modifications. The failure of the one UST brought this problem to the
forefront now, rather than have it pending until 2006.
The creation of a CIP to replace two USTs (the 10,000 and the 20,000 gal1on tanks) is based on
the realization that there will be a substantial cost of approximately $80,000 associated solely
with removing the one tank, and that the two old tanks may have had to be replaced as early as
2006. A new 20,000-gallon UST will cost approximately $20,000, and a new 10,000-gallon UST
will cost about $12,000. The cost to remove the second tank will be significantly reduced
because it will be almost completely exposed.
Staff believes it is in the City's best interest to install two new USTs during the tank removal,
replacing the tank that failed and the other tank dating to 1988. Also, modifications to meet 2006
standards to the tank installed during construction will also be done while its top is exposed.
This will provide the City with three USTs at this location that will meet all known regulations.
The regulations for underground fuel piping have changed since the construction of the John
Lippitt Public Works Center and various single-wal1 pipes will be replaced with double-wall
pipe.
FISCAL IMPACT:
The net impact to the General Fund is $300,000. Sufficient funds are available in the available
balance of the General Fund for this appropriation.
Attachment:
Estimate of Repair Costs for Tank Removal and Repair at 1800 Maxwel1 Road
H:lPublic Works OperationslAl13's 20041A113 1800 Maxwellb USTs.doc
1'1- - -;;-
Estimate of Repair Costs for Tank Removal and Repair at 1800 Maxwell Road
Item Estimate Description Comments
1 $80,000 Remove tank slab, excavate The 20,000 UST must
the tank pit, remove 20,000 be removed. The
gallon UST, repour slab removal requires that
the tank slab be
removed along with
most of the backfill in
the tank excavation.
2 $70,000 Replace vapor return lines to This is mandated by
the fuel island with double-wall new regulations and
pipe. Replace the tank vent will require concrete
lines with double-wall pipe cutting into the fuel
island to reach the
unleaded dispensers.
This will also require
cutting to the Stores
Building to replace the
tank vent pipes.
3 $20,000 New 20,000 gallon UST Replace tank that
failed the SB989 test.
4 $12,000 New 10,000 gallon UST Replace tank to meet
2006 standards.
5 $15,000 Well in tank excavation to This will keep the tank
remove surface water and excavation dry, and
pump it to the truck wash the water discharged
will reduce the amount
of makeup water
needed in the truck
wash. This water will
pass through the
clarifier before
discharç¡e to sewer.
6 $103,000 Contingencies The two 1988 tanks
are on concrete slabs.
It is not known if the
slabs must be
removed, or if they
can be modified to fit
the new tanks.
/ Lf-3
RESOLUTION NO. 2004-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROPRIATING $300,000 FROM THE AVAILABLE
BALANCE OF THE GENERAL FUND AND ESTABLISHING NEW
CAPITAL IMPROVEMENT PROJECT NO. GGI87 FOR THE
REPLACEMENT OF TWO UNDERGROUND FUEL STORAGE
TANKS AND THE REPLACEMENT OF VARIOUS UNDERGROUND
PIPING AT THE JOHN LIPPITT PUBLIC WORKS CENTER
WHEREAS, one of the underground fuel storage tanks located at the John Lippitt
Public Works Center should be removed as defined in state law SB989; and
WHEREAS, a second tank that was installed by SDG&E will be replaced as well;
and
WHEREAS, state regulations regarding underground fuel tanks were revised and
as a result, the underground piping should also be replaced and
WHEREAS, new regulations anticipated to go into effect in 2006, require that the
two tanks that were installed in 1988 either be extensively modified or replaced; and
WHEREAS, the creation of CIP to replace two underground storage tanks (the
10,000 and the 20,000 gallon tanks) is based on the realization that there will be a
substantial cost of approximately $80,000 associated solely with removing the one tank,
and that the two tanks may have had to be replaced as early as 2006; and
WHEREAS, staff believes that it is in the City's best interest to install two new
underground storage tanks during the tank removal.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby appropriate $300,000 from the available balance of the General
Fund and establishing new Capital Improvement Project No. GGI87 for the replacement
of two underground fuel storage tanks and the replacement of various underground piping
at the John Lippitt Public Works Center.
Presented by
Approved as to form by
ðvJ ~~)
Ann Moore
City Attorney
Dave Byers
Director of Public Works Operations
Jhttorney/cesolappropriationl John Lipp;tt PWC
/'-1-1
COUNCIL AGENDA STATEMENT
ItefT]. IS'
Meeting Dare June 15, 2004
ITEM TITLE:
a) Resolution Intention to Approve an Amendment to the
Safety and Miscellaneous Contracts between the Board of
Administration of the Public Employees' Retirement System and
the City Council of the City of Chula Vista to provide Section
20434, Any Officers or Employees of a Fire Department employed
to perform duties of Firefighting, Fire Prevention, Fire Training,
Hazardous Materials, Emergency Medical Services, or Fire or
Arson Investigation Services reclassified as "Local Fire Fighters"
and directing staff to adjust the 2004/05 proposed budget
accordingly
b) Ordinance Authorizing an amendment to the contract
between the Board of Administration of the Public Employees'
Retirement System and the City Council of the City of Chula
Vista to provide Sections 20434, Any Officers or Employees of a
Fire Department employed to perform duties of Firefighting, Fire
Prevention, Fire Training, Hazardous Materials, Emergency
Medical Services, or Fire or Arson Investigation Services
reclassified as "Local Fire Fighters" /7 d
SUBMITTED BY: Director of Human Resourcesf}'¡. (~
&lL-
REVIEWED BY: City Manager"'!)~ (4/5ths Vote: Yes_No~J
The City is amending both the Miscellaneous and Safety contracts between the Board of
Administration of the California Public Employees' Retirement Board and the City of
Chula Vista to expand the definition of "Local Fire Fighters" to include the employees of
the Fire Prevention Bureau who are involved in prevention and fire and arson
investigation services.
RECOMMENDATION: That Council adopt the subject Resolution of Intention, and
place on first reading the Ordinance, which will amend both the Miscellaneous and
Safety contracts between the Board of Administration of the California Public
Employees' Retirement Board and the City of Chula Vista to expand the definition of
"Local Fire Fighters" to include the employees of the Fire Prevention Bureau who are
involved in prevention and fire and arson investigation services.
BACKGROUND:
In 1989, Assembly Bill 839 amended the Government Code that changed the definition
¡5-1
Item IS
Meeting Date June 15, 2004
Page 2
of Local Fire Fighter for purposes of retirement benefits. This legislation also made it
optional for public agencies to include in their contract definition of Fire Fighter those
positions whose principle duties fell within the scope of fire prevention, fire training,
hazardous materials, emergency medical services, fire or arson investigation service.
Employees who were performing these duties through October 1, 1989 were
automatically placed in the Safety category. In order to include any employees hired
into these duties after October 1, 1989, agencies needed to amend their contracts to
expand the definition Local Fire Fighter for their agency.
Unfortunately, when the Fire Marshal retired all those who might have known that in
order to provide safety retirement benefits to subsequent Fire Marshals that the City's
contract with CalPERS would need to be amended, were no longer around or had long
forgotten. Consequently the subsequent Fire Marshal (Doug Perry) was hired as a
Safety employee although the contract had never been amended. Since Chief Perry,
was promoted out of the Fire Marshal position it has remained vacant while an
evaluation as to whether the position should be sworn or civilian was conducted. It has
been determined by the City that the position of Fire Marshal and its duties warranted
safety status. When requesting and evaluation from CalPERS as to whether the duties
of our Fire Marshal position met the definition of Local Fire Fighter for their purposes we
also learned that we can not reclassify a single classification performing these duties but
that any position within the agency who performs those duties must be classified the
same for CalPERS purposes, and that their status as safety employees must be
retroactive to the date they commenced performing those duties.
All Fire Prevention Bureau job specifications were forwarded to CalPERS for evaluation.
CalPERS has determined that the duties of positions of Fire Marshal and Fire
Prevention Specialist fall within the Local Fire Fighter Duties. The position of Public
Education Specialist did not.
In order to affect this change the Miscellaneous Contract needs to be amended to
exclude those performing duties defined as "local firefighting" and the Safety Contract
be amended to include those performing duties defined as "local firefighting".
There are currently five employees who will be affected by this change. Their retirement
benefits will go from the 3% @ 60 Miscellaneous Plan to the 3% @ 50 Safety Plan. The
employee contribution although currently paid in full by the City will go from 8% to 9%.
Because of the change in benefit and contribution levels those employees who will be
affected by this change are given an opportunity to vote on the proposed amendment.
A simple majority vote is required.
Statement of Future Annual Costs
Government Code Section 7507 requires that the future annual costs of the proposed
contract amendments be made public at a public meeting at least two weeks prior to the
adoption of the final Ordinance. The following are the costs, as identified in the actuarial
valuation, for this contract amendment:
/5- ;)-
Item ; ej
Meeting Date June 15,2004
Page 3
Miscellaneous Plan
1) Change in the Present Value of Benefits
2) Decrease in Actuarial Value of Assets
3) Change in the Unfunded Accrued Liability
4) Change in the Total Employer Rate
$(189,492)
$(29,190)
$(3,688)
0.031%
Safety Plan
1) Change in the Present Value of Benefits
2) Increase in Actuarial Value of Assets
3) Change in the Unfunded Accrued Liability
4) Change in the Total Employer Rate
Contract Amendment Process
$537,035
$29,189
$30,447
(0.019%)
The process set out by CalPERS for contract amendments is very specific. This item is
being presented as an announcement of the City's intention to amend our contract and
to present the first reading of the required Ordinance. Pursuant to Govemment Code
Section 20471, CalPERS requires that there be a 20-day period between the adoption of
the resolution of intention and the adoption of the final Ordinance. There are no
exceptions to this law. The second reading and final adoption of the contract
amendment will be July 20, 2004.
Fiscal Impact: Implementation of this contract amendment has a negligible impact on
the employer contribution for either the Safety or Miscellaneous plans. It will however
result in a prospective increase in the City paid employee contribution rate from 8% to
9% of salary for the affected classifications. The 2004/05 cost of this is $54,516. Also
required are retroactive employer and employee contributions to the affected
incumbents' dates of hire. This is a one-time cost of $43,324. The total for 2004/05 that
will need to be added to the budget is $97,840. The on-going annual cost is estimated
to be $60,000.
Attachments: CalPERS Contracts
/5,3
Â
CalPERS
EXHIBIT
California
Public Employees' Retirement System
..
AMENDMENT TO
CONTRACT
California
Between the
Board of Administration
Public Employees' Retirement
and the
City Council
City of Chula Vista
System
..
The Board of Administration, California Public Employees' Retirement System,
hereinafter referred to as Board, and the governing body of the above public agency,
hereinafter referred to as Public Agency, having entered into a contract effective
October 1, 1948, and witnessed August 31, 1948, and as amended effective October 1,
1951, November 1, 1955, January 1, 1960, January 1, 1961, September 1, 1967,
September 28, 1973, October 4, 1973, October 8, 1976, April 16, 1981, January 8,
1982, September 28, 1984, July 3, 1987, October 13, 1989, September 27, 1990,
November 16,1990, January 4,1991, September 6,1991, October 7,1994, June 28,
1995, May 29, 1998, April 7, 2000, July 1, 2002, December 27,2002 and June 27, 2003
which provides for participation of Public Agency in said System, Board and Public
Agency hereby agree as follows:
A.
Paragraphs 1 through 15 are hereby stricken from said contract as executed
effective June 27, 2003, and hereby replaced by the following paragraphs
numbered 1 through 15 inclusive:
1.
All words and terms used herein which are defined in the Public
Employees' Retirement Law shall have the meaning as defined therein
unless otherwise specifically provided. "Normal retirement age" shall
mean age 60 for local miscellaneous members and age 50 for local safety
members.
/5-'-/
2.
PLEASE DO NOT SIGN
'- ,.
Public Agency shall participate in the Public Employees' Retirement
System from and after October 1, 1948 making its employees as
hereinafter provided, members of said System subject to all provisions of
the Public Employees' Retirement Law except such as apply only on
election of a contracting agency and are not provided for herein and to all
amendments to said Law hereafter enacted except those, which by
express provisions thereof, apply only on the election of a contracting
agency.
3.
Employees of Public Agency in the following classes shall become
members of said Retirement System except such in each such class as
are excluded by law or this agreement:
a.
Local Fire Fighters (herein referred to as local safety members);
b.
Local Police Officers (herein referred to as local safety members);
c.
Employees other than local safety members (herein referred to as
local miscellaneous members).
4.
In addition to the classes of employees excluded from membership by
said Retirement Law, the following classes of employees shall not become
members of said Retirement System:
NO ADDITIONAL EXCLUSIONS
5.
Effective October 4, 1993 and prior to January 1, 1975, those members
who were hired by Public Agency on a temporary and/or seasonal basis
not to exceed 6 months were excluded from PERS membership by
contract. Government Code Section 20336 superseded this contract
provision by providing that any such temporary and/or seasonal
employees are excluded from PERS membership subsequent to January
1, 1975. Legislation repealed and replaced said Section with Government
Code Section 20305 effective July 1, 1994.
6.
This contract shall be a continuation of the contract of the Montgomery
Fire Protection District, hereinafter referred to as "Former Agency". The
accumulated contributions, assets and liability for prior and current service
under the Former Agency's contract shall be merged pursuant to Section
20508 of the Government Code. Such merger occurred January 1, 1986.
a.
All benefits provided under this contract shall apply to all past
service for former employees of the Montgomery Fire Protection
District.
/5-5
7.
8.
9.
PLEASE DO NOT SIGN "EXH!3!T
The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment before and not on or after December 27, 2002 shall be
determined in accordance with Section 21354 of said Retirement Law
(2% at age 55 Full).
The percentage of final compensation to be provided for each year of
credited prior and current service as a local miscellaneous member in
employment on or after December 27, 2002 shall be determined in
accordance with Section 21354.3 of said Retirement Law (3% at age 60
Full).
The percentage of final compensation to be provided for each year of
credited prior and current service as a local safety member shall be
determined in accordance with Section 21362.2 of said Retirement Law
(3% at age 50 Full).
10.
Public Agency elected and elects to be subject to the following optional
provisions:
a.
Section 20965 (Credit for Unused Sick Leave).
b.
Section 20425 ("Local Police Officer" shall include employees of a
police department who were employed to perform identification or
communication duties on August 4, 1972 and who elected to be
local safety members on or before September 28, 1973).
c.
Section 21325 (One-Time 3% to 15% Increase For Local
Miscellaneous Members Who Retired or Died Prior to January 1,
1974). Legislation repealed said Section effective January 1,2002.
d.
Sections 21624 and 21626 (Post-Retirement Survivor Allowance)
for local safety members only.
e.
Section 20516 (Employees Sharing Cost of Additional Benefits):
Section 21362 2% @ 50 Full formula
From and after September 28, 1984 to July 1, 1985 the safety
employees of Public Agency shall be assessed an additional
0.341 % of their compensation for a total contribution rate of 9.341 %
pursuant to Government Code Section 20516.
f.
Section 21574 (Fourth Level of 1959 Survivor Benefits).
g.
Section 20042 (One-Year Final Compensation).
/5-(p
11.
12.
13.
PLEASE DO NOT SiGN
h.
Section 20426 ("Local Police Officer" shall include any officer or
employee of a police department employed to perform
communication duties and who elected to become a local safety
member on August 25, 1973).
i.
Section 21024 (Military Service Credit as Public Service), Statutes
of 1976.
j.
k.
Section 21623.5 ($5,000 Retired Death Benefit).
Sections 21624, 21626 and 21628 (Post-Retirement Survivor
Allowance) for local miscellaneous members only.
I.
Section 20434 ("Local Fire Fighter" shall include any officer or
employee of a fire department employed to perform firefighting, fire
prevention, fire training, hazardous materials, emergency medical
services, or fire or arson investigation services as described in
Government Code Section 20434).
Public Agency, in accordance with Government Code Section 20790,
ceased to be an "employer" for purposes of Section 20834 effective on
October 8, 1976. Accumulated contributions of Public Agency shall be
fixed and determined as provided in Government Code Section 20834,
and accumulated contributions thereafter shall be held by the Board as
provided in Government Code Section 20834.
Public Agency shall contribute to said Retirement System the contributions
determined by actuarial valuations of prior and future service liability with
respect to local miscellaneous members and local safety members of said
Retirement System.
Public Agency shall also contribute to said Retirement System as follows:
a.
Contributions required per covered member on account of the 1959
Survivor Benefits provided under Section 21574 of said Retirement
Law. (Subject to annual change.) In addition, all assets and
liabilities of Public Agency and its employees shall be pooled in a
single account, based on term insurance rates, for survivors of all
local miscellaneous members and local safety members.
b.
A reasonable amount, as fixed by the Board, payable in one
installment within 60 days of date of contract to cover the costs of
administering said System as it affects the employees of Public
Agency, not including the costs of special valuations or of the
periodic investigation and valuations required by law.
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14.
15.
B.
c.
A reasonable amount, as fixed by the Board, payable in one
installment as the occasions arise, to cover the costs of special
valuations on account of employees of Public Agency, and costs of
the periodic investigation and valuations required by law.
Contributions required of Public Agency and its employees shall be
subject to adjustment by Board on account of amendments to the Public
Employees' Retirement law, and on account of the experience under the
Retirement System as determined by the periodic investigation and
valuation required by said Retirement law.
Contributions required of Public Agency and its employees shall be paid
by Public Agency to the Retirement System within fifteen days after the
end of the period to which said contributions refer or as may be prescribed
by Board regulation. If more or less than the correct amount of
contributions is paid for any period, proper adjustment shall be made in
connection with subsequent remittances. Adjustments on account of
errors in contributions required of any employee may be made by direct
payments between the employee and the Board.
This amendment shall be effective on the - day of
'-'
BOARD OF ADMINISTRATION <\,-", CITY COUNCil
PUBLIC EMPLOYEES' RETIRI;M.Ë-NT SYSTEM CITY OF CHULA VISTA
" . ""I')V
,.ç~:~~ ,~.:>
BY ,;<,\";f BY \'\,\J"
KENNETH W" .I\(1':ARZfON, CHIEF PRESIDING OFFICE~:-.'\~~'
ACTUARIAL, ,&'--eÌli'lPlOYER SERVICES DIVISION~~'vf"
PUBLIC Efì(1Pt'OYEES' RETIREMENT SYSTEM ~{J.\
/ \\~,\
fJ \~'J
WitnJ~~ate
~~
",' ~
'Attest:
Clerk
AMENDMENT ER# 0195
PERS-CON-702A (Rev. 8\02)
/5-~
RESOLUTION OF INTENTION
TO APPROVE AN AMENDMENT TO THE
SAFETY AND MISCELLANEOUS CONTRACTS
BETWEEN THE
BOARD OF ADMINISTRATION
CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
AND THE
CITY COUNCIL
CITY OF CHULA VISTA
WHEREAS,
the Public Employees' Retirement Law permits the participation of public
agencies and their employees in the Public Employees' Retirement System
by the execution of a contract, and sets forth the procedure by which said
public agencies may elect to subject themselves and their employees to
amendments to said Law; and
WHEREAS, one ofthe steps in the procedures to amend this contract is the adoption by
the governing body of the public agency of a resolution giving notice of its
intention to approve an amendment to said contract, which resolution shall
contain a summary of the change proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 20434 (Any Officers or employees of a Fire
Department employed to perform duties ofFirefighting, Fire
Prevention, Fire Training, Hazardous Materials, Emergency
Medical Services, or Fire or Arson Investigation Services
reclassified as "Local Fire Fighters").
NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency
does hereby give notice of intention to approve an amendment to the contract
between said public agency and the Board of Administration of the California
Public Employees' Retirement System, and direct staff to adjust the 2004/05
proposed budget accordingly, a copy of said amendment being attached hereto, as
an "Exhibit" and by this reference made a part hereof.
Presented by
Approved as to form by
Marcia Raskin
Director of Human Resources
~kx CN\ k\ ~þ (~\\
Ann Moore
City Attorney
J:AttorneylResolBenefitslCalPERS Fire Dept
/:5 -Cf
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING AN AMENDMENT TO THE
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF
THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE
CITY COUNCIL OF THE CITY OF CHULA VISTA TO PROVIDE
SECTION 20434, ANY OFFICERS OR EMPLOYEES OF A FIRE
DEPARTMENT EMPLOYED TO PERFORM DUTIES OF
FIRE FIGHTING, FIRE PREVENTION, FIRE TRAINING,
HAZARDOUS MATERIALS, EMERGENCY MEDICAL
SERVICES, OR FIRE OR ARSON INVESTIGATION SERVICES
RECLASSIFIED AS "LOCAL FIRE FIGHTERS"
The City Council of the City of Chula Vista does ordain as follows:
Section 1.
That an amendment to the contract between the Board of Administration, California
Public Employees' Retirement System and the City Council of the City of Chula Vista is
hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit", and by
such reference made a part hereof as though herein set out in full.
Section 2.
The Mayor of the City of Chula Vista is hereby authorized, empowered, and directed
to execute said amendment for and on behalf of said Agency.
Section 3.
This Ordinance shall take effect thirty (30) days after the date of its adoption, and
prior to the expiration of fifteen (15) days from the passage thereof shall be published at least
once in the Chula Vista Star News, a newspaper of general circulation, published and
circulated in the City of Chula Vista and thence forth and thereafter the same shall be in full
force and effect.
Presented by:
Approved as to form by:
Marcia Raskin
Director of Human Resources
'1\~,,{~ \,\r~\l-
Ann Moore
City Attorney
¡:/attomey/ord/fire dept
/5 -/0
COUNCIL AGENDA STATEMENT
Meeting Date
Item 1(..
06/15/2004
ITEM TITLE: Resolution Approving the third amendment to the Agreement
between between the City ofChula Vista and the San Diego Unified Port District for police, fire and
emergency medical services. 0-
SUBMITTED BY: Chief of Police r
G'v
REVIEWED BY: City Manager f,,¡<:)ç.I
(4/5th Vote: Yes - No..x.J
Approving a three year extension to the Agreement between the City of Chula Vista and the San
Diego Unified Port District to provide police, fire and emergency medical services to the San Diego
Unified Port districts on Port District lands ajacent to the City of Chula Vista.
RECOMMENDATION: Council adopts the resolution approving the third amendment to the
Agreement between between the City of Chula Vista and the San Diego Unified Port District for
police, fire and emergency medical services.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION: The City of Chula Vista has been providing police, fire and emergency medical
services to the San Diego Unified Port District since 1994. This contract covers reimbursement of
the cost of providing the police, fire protection and emergency medical services to the Port Districts
filled tidelands and property with the City's limits, which do not generate ad valorem tax revenues.
Those properties include non-dedicated streets, parks and other open space; unleased developed
properties; leased properties wherein the lessee is not subject to ad valorem taxes; and unleased land.
The City and the Port District reached consensus on the cost calculation methodology, which in
effect sets a rate for the upcoming fiscal year and makes adjustments to the contracted rate at the end
of the fiscal year based upon actual costs incurred by the City to provide the contracted services. So
although the contract indicates specific dollar amounts for each fiscal year, this number may increase
or decrease based upon actual costs throughout the fiscal year. In fiscal year 2003, the City budgeted
$366,355 for contract services with the Port and the actual costs were $494,843 which were fully
reimbursed to the City.
This amendment is effective July I, 2003 and expires June 30, 2006.
FISCAL IMPACT: Adopting this resolution will set the preliminary reimbursement amount owed
by the Port District to the City for the provision of police, fire and emergency medical services to the
non-tax paying properties on the tidelands during fiscal years 2004, 2005 and 2006 at $1,664,586,
This number is subject to change due to the actual costs of services performed.
/ (p-I
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA APPROVING THE THIRD AMENDMENT TO THE AGREEMENT
BETWEEN BETWEEN THE CITY OF CHULA VISTA AND THE SAN
DIEGO UNIFIED PORT DISTRICT FOR POLICE, FIRE AND
EMERGENCY MEDICAL SERVICES,
WHEREAS, the City of Chula Vista and the San Diego Unified Port District
desire to execute an Agreement for police, fire and emergency services on non-
ad valorem tideland trust property located in the City; and,
WHEREAS, the City has the capacity to provide police, fire and
emergency medical services to said District property; and
WHEREAS, the Port District will reimburse the City for all expenses
occurred in fulfilling this contract;
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula
Vista does hereby approve the third amendment to the Agreement between
between the City of Chula Vista and the San Diego Unified Port District for police,
fire and emergency medical services.
Presented by:
Approved as to form by:
~~~
Ann Moore
City Attorney
/~-;)-
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
f'1 G\4-An~ ~:
City Attorney
Dated:~ ~ I 7" OD~
Approving e ThIrd Amendment to the
Agreement between the City of Chula Vista and
The San Diego Unified Port District for
Police, Fire and Emergency Medical Services
/&-3
~~
~
Unified Port
of San Die~o
3165 Pacific Highway, San Diego, CA 92101
PO. Box 12O4BB, San Diego, CA 92112-0488
619.686.6200 . www.portofsandiego.org
May 14, 2004
Nadine Mandery
Treasury Manager
City of Chula Vista
276 4th Ave.
Chula Vista, California 91910
Dear Ms. Mandery
Enclosed are three (3) originals of the Three-Year Agreement for Police, Fire and
Emergency Medical Services between the City of Chula Vista and the San Diego
Unified Port District. Please have the appropriate parties sign all three (3)
originals and return them to my attention at the address above. If you have any
questions, please contact Robert Monson at (619) 686-6477.
Sin~~
Je~~ ~.~Entee
CFOfTreasureer
JBM:lp
Docs #78552
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San Diego Unified Port District
AGREEMENT FOR POLICE. FIRE AND EMERGENCY MEDICAL SERVICES
BETWEEN THE CITY OF CHULA VISTA AND
THE SAN DIEGO UNIFIED PORT DISTRICT
The parties to this Agreement are the SAN DIEGO UNIFIED PORT DISTRICT, a public corporation,
herein called "DISTRICT" and the CITY OF CHULA VISTA, a municipal corporation, herein called
"CITY."
RECITALS:
WHEREAS, the DISTRICT and the CITY desire to execute an Agreement for police, fire and
emergency medical services on non-ad valorem tideland trust property located in the CITY, and;
WHEREAS, the CITY has the capacity to provide police, fire and emergency medical services to said
DISTRICT property, and;
WHEREAS, the DISTRICT has an obligation to adhere to a principle of reimbursement for services
provided to non-ad valorem tideland trust property, wherein the cost bears a relationship to the
services provided, the reimbursement is substantiated by an auditable record, and for which the
reimbursement is reasonable and falls within the trust purposes of the DISTRICT, and;
WHEREAS, the DISTRICT may authorize the disbursement of money for specified and approved
categories of reimbursement to the CITY providing such services are based upon records kept in the
normal course of CITY business; .
WHEREAS, said Agreement provides for the extension and amendment of this Agreement when
mutually consented to by the parties, and
NOW, THEREFORE, it is mutually understood and agreed by and between the parties as follows:
1.
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SERVICES TO BE PROVIDED
A.
This Agreement covers reimbursement of the cost of police, fire protection and
emergency medical services to be provided by the CITY upon the DISTRICT's filled
tidelands and property within the CITY's limits, which do not generate ad valorem tax
revenues. Those properties include, but are not limited to, non-dedicated streets, parks
and other open space; unleased developed properties; leased properties wherein the
lessee is not subject to ad valorem taxes (with the exception of properties leased to the
CITY); and unleased vacant land. Nothing herein contained shall give the CITY the
right to use or occupy any DISTRICT real or personal property, or to otherwise use the
services of the DISTRICT or its employees.
B.
CITY shall provide police, fire and emergency medical services as contained in the
Statement of Reimbursable Expenses of this Agreement, attached hereto as Exhibit A
and incorporated by reference as though fully set forth herein. Only expenditures
authorized herein shall be eligible for reimbursement, unless approved in writing by the
DISTRICT.
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C.
D.
2.
3.
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For Police Services, the CITY shall provide services to the same extent and in the same
manner as such member city actually provides or may be required by law to provide to
an ad valorem tax-generating property. DISTRICT and CITY shall, to the extent
practicable, meet and confer as needed to discuss deployment of resources
cooperatively in an effort to avoid duplication of services.
For Fire and Emerqencv Medical Services, the CITY shall provide, to same extent and
in the same manner as such member city actually provides or may be required by law to
provide to an ad valorem tax-generating property, responses to all calls for fire
suppression services by the fire department; and responses to all calls for emergency
medical services, to such extent as the county, state, or federal government requires
the CITY to provide. The parties agree that emergency medical services shall be
limited to first responder services.
E.
The activities and services authorized for reimbursement shall only be those which have
occurred, and been rendered on or after July 1, 2003, and which are in furtherance of
the San Diego Bay tideland trust for the accommodation of commerce, navigation,
fisheries, and recreation on said trust tidelands for the benefit of all of the people of the
State of California.
PERIOD
This Agreement shall cover services rendered for the three-year period from July 1, 2003 to
June 30, 2006; provided, however, either party may terminate this Agreement, without cause,
at the end of a fiscal year provided written notice is given at least six (6) months prior to the
end of the fiscal year. This Agreement may be extended for three (3) additional one-year
periods on a year- to-year basis as mutually agreed by the parties hereto.
CONSIDERATION
A.
In consideration of the foregoing performance of services by the CITY, the DISTRICT
shall pay to the CITY Five Hundred Twenty-Eight Thousand Twenty-One Dollars
($528,021) for fiscal year 2004, Five Hundred Fifty-Four Thousand Four Hundred
Twenty-Two ($554,422) for fiscal year 2005, Five Hundred Eighty-Two Thousand
One Hundred Forty-Three ($582,143) for fiscal year 2006 as listed in Exhibit A,
incorporated by reference as though fully set forth here for a maximum amount under
this agreement not to exceed One Million Six Hundred Sixty-Four Thousand Five
Hundred Eighty-Six Dollars ($1,664,586). The estimates in consideration for fiscal
year 2004 through 2006 are recognized as the approximate cost of police fire and
emergency services with the City. If during the term of this Agreement the CITY's
actual costs for services change significantly more or less than the estimated amount,
CITY shall give DISTRICT written notice and furnish documentation satisfactory to
DISTRICT to substantiate the changes no later than December of each year. The
resulting increase or decrease in actual costs will be taken into consideration when
arriving at the final consideration for each year. If actual costs increase, the District
shall pay the increase no later than 90 days after receipt of a properly prepared and
supported invoice. If costs decrease, CITY shall refund the overpayment to the District.
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B.
C.
D.
Quarterly payments shall initially be based on prior year actuals. No later than
December of each year, the CITY shall provide the DISTRICT actual costs for the prior
fiscal year to be used as the basis for calculating the annual consideration in the next
fiscal year.
If both parties desire to renew the Agreement and cost for the subsequent years is not
finalized before the current Agreement expires, the current Agreement may be extended
for one year at an annual consideration equal to the most recent year's cost. During
this period, the District agrees to continue making quarterly payments until which time
negotiations are completed. The Agreement amount will then be adjusted based on the
final negotiated cost.
The CITY shall submit invoices on a quarterly basis no sooner than thirty (30) days prior
to the end of the quarter. District agrees to reimburse the CITY within thirty (30) days of
receipt of a properly prepared request for reimbursement.
4.
TYPES OF REIMBURSABLE EXPENSES
A.
For Police Services, reimbursement shall be based on services provided, such as,
responses to calls for service from persons other than CITY's sworn officers; calls for
back-up service; preventive patrol, which may include taking appropriate action on
routine incidents encountered where no arrest occurred and/or no report was made (for
example, routine vehicle impounds and traffic stops); opening and closure of parks and
security patrol as requested in writing by the DISTRICT; calls by Harbor Police for CITY
police assistance; reimbursement for consumption of supplies; storing evidence; actual
expenditures in terms of time, material and overhead in the case of calamities; activities
of support staff, for example, investigating, supervising, and dispatching; a reasonable
allocation of overhead as determined for each category of work; and other activities or
events which call for the deployment of public safety officers. All costs reimbursed shall
be based on services rendered for which the cost is reasonable and substantiated by
data that is auditable to support that level of service.
B. . For Fire and Emeraencv Medical Services, reimbursement shall be seven percent (7%)
of the direct costs and overhead, representing a reasonable pro-rata portion of the cost,
to operate one of the fire companies in the CITY's Fire Station No.1, the primary
responder to tideland emergencies.
5.
STATEMENTS OF EXPENSES
Beginning with December 2005 and every third year thereafter, CITY shall provide DISTRICT
with a statement of actual costs estimating DISTRICT reimbursements due for services to be
provided to the DISTRICT during the next three fiscal years for purposes of reaching mutual
agreement on a new contract, if applicable. Said statement shall be based on the costs
incurred in providing police, fire, and emergency medical services during the previous fiscal
year. The estimate for police services shall include, but not be limited to, the number of calls
for service, investigations, reports, arrests, or other particulars on police actions performed.
Where applicable, the estimate for fire and emergency medical services shall include the
number of calls for service. The estimates for police, fire and emergency medical services
shall include, but not be limited to, direct labor and other operating costs, details of allocations
of actual support staff costs or departmental overhead, and general CITY overhead costs
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6,
7,
8.
based upon reasonableness and generally accepted accounting principles. The CITY shall
ensure that all data used in said estimates is supported by an audit trail that readily traces to
underlying authoritative source documents.
DISTRICT POLICE SERVICES
The DISTRICT shall maintain its current level of police services within the CITY tideland area,
and reserves the right to augment those services in the following fiscal year provided written
notice is given at least six (6) months prior to the end of a fiscal year. Said augmentation may
result in a reduction in the future CITY services that otherwise might have been reimbursable
under this Agreement.
RECORDS
A.
At the request of the DISTRICT, and upon reasonable notice, the CITY shall make
available documentation supporting the request for reimbursement. Such
documentation, if reasonably available, may include, but is not limited to, time cards,
contracts, receipts, original invoices, canceled checks, payroll documentation, calls for
service records, dispatch records, police and fire budget data, other budget data used to
calculate citywide overhead factors, the CITY's police staffing model, and other periodic
logs maintained by police and fire staff. The DISTRICT shall have the right to review
and make copies of documents, insofar as confidentiality requirements can be
reasonably maintained. Proof of both incurrence and payment shall be kept on file by
the CITY for review by the DISTRICT for a period of three (3) years after the last day of
the fiscal year,
B.
No less often than monthly, CITY agrees to maintain for DISTRICT review copies of any
periodic logs, calls for police, or other police, fire, or medical emergency incident reports
describing incidents occurring on non-ad valorem tideland properties covered by this
Agreement. Where available, exact street addresses should be listed in the logs and
calls for service to assure that only actions on non-ad valorem properties are included.
Quarterly statistical reports detailing the number and types of incidents on non-ad
valorem tideland properties may be substituted.
ASSIGNMENT
CITY shall not assign this Agreement or any right or interest hereunder without express prior
written consent of DISTRICT, nor shall DISTRICT assign this Agreement or any right or
interest hereunder without express prior written consent of CITY.
9.
TERMINATION FOR CAUSE
DISTRICT may terminate its entire obligation upon reasonable notice to CITY if the CITY
violates any of the terms of the Agreement. CITY may terminate its entire obligation upon
reasonable notice to the DISTRICT if the DISTRICT violates any of the terms of the
Agreement.
Prior to termination, said parties shall meet to attempt to resolve the issue(s) and/or shall
utilize the dispute resolution process described in Paragraph 14 below, "Dispute Resolution,"
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10.
ENTIRE AGREEMENT
11.
It is' expressly understood and agreed that this Agreement constitutes the entire Agreement
between the City and the DISTRICT and in no event shall the CITY be entitled to any
compensation, benefits, reimbursement or ancillary services other than as expressly provided
in this Agreement. There are no other written or oral understandings between the parties. No
modification or amendment to this Agreement shall be valid unless in writing and signed by the
parties hereto.
HOLD HARMLESS
A.
12.
A.
Docs #37066
CITY agrees to indemnify and hold the DISTRICT harmless against and from any and
all damages to property or injuries to or death of any person or persons, including
employees or agents of the DISTRICT, and shall defend, indemnify and hold harmless
the DISTRICT, its officers, agents and employees, from any and all claims, demands,
suits, actions or proceedings of any kind or nature, of or by anyone whomsoever, in any
way resulting from or arising out of the negligent or intentional acts, errors or omissions
of the CITY or any of its officers, agents or employees, except where claims or
damages arise from the sole negligence or intentional acts, errors, or omissions of
DISTRICT, its officers, agents or employees.
B.
DISTRICT agrees to indemnify and hold the CITY harmless against and from any and
all damages to property or injuries to or death of any person or persons, including
employees or agents of the CITY and, shall defend, indemnify and hold harmless the
CITY, its officers, agents and employees, from any and all claims, demands, suits,
actions or proceedings of any kind or nature, of or by anyone, whomsoever, in any way
resulting from or arising out of the negligent or intentional acts, errors or omissions of
the DISTRICT or any of its officers, agents or employees, except where claims or
damages arise from the sole negligence or intentional acts, errors or omissions of CITY,
its officers, agents or employees.
INSURANCE REQUIREMENTS
CITY shall, throughout the duration of this Agreement, maintain commercial general
liability and property damage insurance or a self-insured program covering all
operations hereunder of CITY, its agents and employees including, but not limited to,
premises and automobile, with minimum coverage of ten million dollars ($10,000,000)
combined single limits. Evidence of such coverage, in the form of a Certificate of
Insurance and Policy Endorsement which names the DISTRICT as Additional Insured to
the full limit of the CITY's insurance policies, shall be submitted to the San Diego
Unified Port District, Jeffrey McEntee, CFOfTreasurer, P.O. Box 120488, San Diego, CA
92112-0488.
Said policy or policies shall be primary and non-contributory for all purposes and shall
include the DISTRICT, its agents, officers and employees as an Additional Insured by
Endorsement.
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13.
A.
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B.
CITY shall maintain workers' compensation insurance in the amounts required by
California State law, and Employer's Liability insurance of not less than one million
dollars ($1,000,000). This policy shall be endorsed to include a waiver of subrogation
endorsement.
C.
CITY shall provide Medical Malpractice Liability Insurance in an amount of not less than
one million dollars ($1,000,000) per claim for any and all certified medical personnel
providing service under this Agreement.
D.
DISTRICT retains the right to make reasonable amendments to the insurance
requirements to the extent the risk of exposure has changed.
E.
The policies described in Item A above shall be endorsed to include the DISTRICT, its
agents, officers and employees as additional insureds. All coverages under this section
shall be effective as of the effective date of this Agreement or provide for a retroactive
date of placement that coincides with the effective date of this Agreement.
F.
CITY shall furnish to DISTRICT certificates of insurance or proof of a self-funded
program for all policies described above upon execution of this Agreement, and upon
renewal of any of these policies. A Certificate of Insurance, in the form acceptable to
DISTRICT, and the Additional Insurance Endorsement, shall be kept on file with
DISTRICT. Except in the event of cancellation for non-payment of premium, in which
case notice shall be ten (10) days, all such certificates shall indicate that the insurer
must notify DISTRICT in writing at least thirty (30) days in advance of any change in, or
cancellation of, coverage. Contractor shall also provide written notice to DISTRICT prior
to cancellation of, or any change in, the stated coverage of such insurance. The
Certificate of Insurance must delineate the name of the insurance company affording
coverage and the policy number(s) specifically referenced to each type of insurance,
either on the face of the certificate or on an attachment thereto. If an addendum setting
forth multiple insurance companies or underwriters is attached to the certificate of
insurance, the addendum shall indicate the insurance carrier or underwriter who is the
lead carrier and the applicable policy number for the CGL coverage.
DISPUTED REIMBURSEMENTS
If the DISTRICT or the CITY discovers, independent of an audit, that the annual
reimbursement amount made under this contract is greater than or
less than the agreed upon amount, the parties shall meet to attempt to resolve the
issues prior to the end of the fiscal year in which the reimbursement is being disputed.
The CITY shall refund such overpayment and the DISTRICT shall remit such
underpayment only if both parties mutually agree that an error was made and agree
upon the disputed reimbursement amount.
B.
If the DISTRICT conducts an audit of the CITY records for the affected fiscal years, and
if the DISTRICT or the CITY discovers that the annual reimbursements appear to be
overpaid or underpaid, the parties shall meet to attempt to resolve the issues. The
CITY shall reimburse the DISTRICT for an overpayment and the DISTRICT shall
reimburse the CITY for an underpayment only if both parties mutually agree that an
error was made and agree with the disputed amount.
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If such disputes arise, the parties agree to utilize the dispute resolution process
described in Section 14 of this Agreement.
14.
DISPUTE RESOLUTION
If a dispute arises out of or related to this Agreement, or either party alleges a breach thereof,
and if said dispute cannot be settled through negotiation, the parties agree first to try in good
faith to settle the dispute by mediation under the Commercial Mediation Rules of the American
Arbitration Association, before resorting to arbitration, litigation, or some other dispute
resolution procedure.
15.
ATTORNEY'S FEES
In the event any suit is commenced to enforce, protect or establish any right or remedy of any
of the terms and conditions hereof, the prevailing party shall be entitled to have and recover
from the losing party reasonable attorney's fees and costs of suit.
16.
NO THIRD PARTY BENEFICIARIES
This Agreement is made and entered into for the benefit of DISTRICT and CITY only, and it is
not intended for the benefit of any third party or any other person, and no such third party or
any other person shall be a third party beneficiary to this Agreement or otherwise have the
right to enforce any provisions of this Agreement.
17.
CONTRACT ADMINISTRATOR FOR THE DISTRICT
The Business and Financial Services Division of the DISTRICT is designated as the
DISTRICT's contract administrator of this Agreement and shall receive and process all reports
and requests for payment. All correspondence shall be sent to the following address:
Jeffrey B. McEntee
CFOrrreasurer
San Diego Unified Port District
P.O. Box 120488
San Diego, CA 92112-0488 Phone:
(619) 686-6423
The effective date of this Agreement is July 1, 2003.
CITY OF CHULA VISTA
City ~'1~~J+,~
SAN DIEGO UNIFIED PORT DISTRICT
CFOlTreasurer
Attest:
Approved as to Form:
City Clerk
Port Attorney
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Docs #37066
CITY OF CHULA VISTA
Statement of Reimbursable Expenses
For Non-Tax Paying Properties on Tidelands
For Fiscal Year 2004 Through Fiscal Year 2006
~ FY 2005 FY 2006
Police Services
Calls for Service (number) ~
Handling time (hours) 312
Average back-up time 54
Ave. report time 173
Average prisoner transport time -----R
Total CFS time (hrs) 561 hrs
Proactive Cost:
20 minlpatrol shift. 3 shilts = 60 min/day 365
25 minlpatrol shift' 3 shlts = 75 minlday
Directed Patrol Assignment (park closure)
25 min/day '365 days = 9125 minl60 152.1
Reserve capacity factor ~
Total Police Hours ~
Available officer hours ~
No of officers required
[Total police hrs/avaiiable officer hrs) ~
Annual cost per beat officer ~a
Total cost per required officer (1.68 x $96,123) $161,487
Support staff:
Ratio of support staff/officer ---Ll b
Support stoff per officer (1.1 x 1.88) ~
Annual Cost per support staff ~ c
Total support staff cost (1.848 x $94,421) ~
Total OfficerlSupport Staff Cost $335,078
City Overhead ($335,978 '15.18%) ~
Cost of Police Services $ 386,080
Fire Services
Fire Personnel Cost $ 1,114,505 d
Fire Non-personnel cost 157,000 d
Fire Support Staff cost ~d
Total Fire company cost ~
7% Negotiated Factor $ 100,622
Overhead cost - City overhead 15.18% ~
Cost of Fire Services $115,807
$ 502,877 e
~
$ 528,021 $ 554,422 f ~f
Police and Fire Costs
5% Allowance for Potential Cost Adjustments to Actuals
Contract Amount
a-
b-
c-
d-
e-
f-
See exhibit B for details.
See Exhibit C for details.
See Exhibit 0 for details.
See Exhibit E for details.
Represents actual costs for FY 2003.
Reflects 0 5% allowance for potential cost adjustments.
IIP- I d-
Exhibit A
CITY OF CHULA VISTA
Estimated Value of Police and Fire/Medical Services
For Non-Tax Paying Properties on Tidelands
For Fiscal Year 2004 Through Fiscal Year 2006
Costs Per Officer:
Salaries
Benefits
Bilingual Pay
Officer Uniforms (Cleaning)
Overtime
Education Pay
Worker's Compensation
Canine Support
Subtotal
FY 2003
(Actuals)
$ 57,505
18.498
486
300
5,648
1.443
4,774
119
$ 88,773
Training
Vehicies
Ammunition
Miscellaneous Supplies
Capital
$ 1,018
5,758 a
252
321
Subtotal
$ 7,350
Total Cost Per Beat Officer
$ 96,123
a - Audited vehicle replacement costs per officer:
$ 25,725 Current cost of vehicle (no accessories).
3,850 Current cost of accessories (lights, etc.).
$ 29,575
3,378 Current cost of communications
$ 32,953 Total Vehicle Cost
$ 9,858 ($29,575/3 yrs)
375 ($3,378/9yrs)
$ 10,233 Annual Replacement Cost
7,040 Annual Maintenance Cost
$ 17,273 Total ReplacemenLand Maintenance Costs
$ 5,758 ($17,273/3 shifts)
/fp-/3
Exhibit B
----
.1'ART ìI:
SUPPORT STAFF ~"'EEDKD
Tne ~989-90 ratio of peace officers to support staff (includes
ot~er sworn and non-sworn staff, e.g. investigators, dispatchers,'
ete) was 'equal to ~.9 support staff to ~ beat officer~3 A
negotiated factor of ~.1 sùpport staff per beat officer was used
in FY 92~93 calculations and is 'being recommended for this
contractA.period. However, the ratio ha$,increased to,l.82.
Thus, for','the 2.25 peace officers needed,,1.82 supp-ort staff are
needed.
"
"'-"
RATIOS US,ED TO CJtLCULATE SGPPORT STAFF NEEDED
'SUPPORT STAFF NEEDED
position
Ratio per Patrol Off jeer
Lieuten~~ts/Sergeants/Agents
Community service Officers
Dispatchers (Comm Operators)
Auxiliary Services' '
Support ~ervices'
Investigations'
TOTAL
75/79 = .95
U/79 = .13
23/79 = .29
** 4/79 = .05
lB.5/79 = .24
l2/79 =------l.6.
2.82
Negotiated Support Staff Ratio
l.l
. The'numbers are less than the budgeted positions for that
division to avoid double counting of èertain postions previously
counted, such as Agent, Dispatcher and Lieutenant.
'D..O. hued on Obo 1"0 Hughu/Hei.. ¿o"euli:~o .oud.y "bid, u.....d. Folic. r.lao.d.'
oxp..nð.10..r.. ...eocho.d ,,1:11 oh. oo,y R.=cb d.v"¡opma"O. '
---- -'-"6'" /&'-1'-/ EXHIBIT.~
CITY OF CHULA VISTA
Estimated Value of Pollee and Fire/Medical Services
For Non-Tax Paying Properties on Tidelands
For Fiscal Year 2004 Through Fiscal Year 2006
FY 2003
1. Number of Beat Officers
2. Annual Cost Per Beat Officer
3. Total Beat Officer Cost (1. X 2.)
4. Number of Canine Officers
5. Additional Cost Per Canine Officer
6. Total Canine Officer Cost (2. X 4. + 5. X 4.)
(Audited) Fiscal Year Actual Support Staff Costs (PD Actual - 3. - 6.)
(Actuals)
$27,940,731
95
$ 88,773
$8.433.466
5
$1,844
$452,087
$19,055,178
342.00
95
5
242.00
$78,740
$4,529,827
$
95
$698,266
5
$38,751
$3,794,810
342.00
95
5
242.00
$15,681
SUDDort Staff Direct Costs
(Audited) Fiscal Year Pollee Department (PD) Actual - Employee Services
1. Total Actual Positions
2. Number of Beat Officers
3. Number of Canine Officers
Number of Support Staff (1. - 2. - 3.)
(Audited) Support Staff Direct Costs (Actual Staff Costs / Number of Support Staff)
SUDoort Staff Non-Personnel Costs
(Audited) Fiscal Year PD Actual for Supplies and Services
1. Average Non-Personnel Officer Cost
2. Number of Beat Officers
3. Total Beat Officer Cost (1. X2.)
4. Number of Canine Officers
5. Total Canine Officer Cost (1. X4.)
(Audited) Fiscal Year Actual Support Staff Supplies/Services (PD Actual - 3. - 5.)
1. Total Actual Positions
2. Number of Beat Officers
3. Number of Canine Officers
Number of Support Staff (1. - 2.)
(Audited) Support Staff Non-Personnel Costs
(Actual Support Staff Supplies/Services I Number of Support Staff)
Annual SUDDort Staff Cost
Support Staff Direct Costs + Non-Personnel Costs
$94,421
/ (p- /5
Exhibit D
FIR~SJJ(>£RESStQN DIVISION
STATION STAFFING
STATION 1
CAPTAINS
ENGINEERS
FIREFIGHTERS
TOTAL POSITIONS (lAF
POSITIONS'
-~
2
3
TOTAL
AVG. COST!
SALARY øOFPOS. POS. TorAL
CAPTAINS 6 $ . 68,769 $ 412,615
ENGINEERS 6 $ 58,467 $ 350,799
FIREFIGHTERS 9 $ 49870 $ 448,833
TOTAL $ 1,212,247
AVG. COST!
HEALTH PLAN ø OF POS. pas. TOTAL
CAPrAINS 6 $ 4,647 $ 27,882
ENGINEERS 6 $ 4,647 $ 27.882
FIREFIGHTERS 9 $ 4,647 $ 41,823
$ 97,587
AVG. COST
MEDICARE ø OF POS. POS. TOTAL
CAPTAINS 6 $ 997 $ 5,983
ENGINEERS 6 $ 848 $ 5,087
FIREFIGHTERS 9 $ 723, $ 6,508
TOTAL $ 17,578
AVG. COST!
POS. TOTAL
1.200 $ 5,256
1.200 $ 14,172
$ 19,428
UNIFORMs
ø OF POS IMOU COST/POS:-IT,Ö,TAL,
21 $ 200 $ ,,1,200
RETIREMENr
STATION 1 SALARY
$ J....212,247
OVERTIME
TOTAL
$ 470,662
rOTAL
$ 160,S98
WORKER'S COMPo
TOTAL PERSONNEL COSTS (2 COMPANIES)
2,229,011
PERSONNEL COST (1 COMPANY)
1,114,505
SERViCEs &SUÞPLlES - I COSTI
BUDGET ø COMPANIES COMPANY
$ 1,105,36.!J- 71 $ 157,909
6
6
9
21
SUPPORT SALARIESIBENEFrrs
øOF TOrAL
POSITION POS. SALARIES RETIREMENT HEALTH MEDICARE
Deputy Fire Chief 2 245,054 49,770 17,980 3,553
Admlnlslnltlve Secretary 1 47,441 4,125 6,490 688
Fire Chief 1 147,032 29,862 10,390 2,132
Admin Services Manager 1 68,287 5,937 8,990 990
Ballalion Chief 4 352,493 71,591 31,960 5,111
Secretarv 1 35,388 3,077 6,490 513
rOTAL 10 895695 164,362 82300 12988
SUPPORT COSTS
TOTAL PERSONNEL:
PER COMPANY (7)
1.155,345
165,049
PERSONNEL COSTS FIRE SUPPRESSION: $ 1,114,505
SVCS, & SUPPLIES ALLOCATION $ 157,909
SUPPORT PERSONNEL ALLOCATION 165,049
SECTION TOTALS $ 1.437,463
ALLOCATION TO TIDELANDS FACTOR:
FIRE SVCS. SUBTOTAL
0,07
100,622
CITY-WIOE OVERHEAD FAcrOR
CITY-WIDE OVERHEAO AMOUNr
0,1518
15,274
TOTAL FIRE SERVICES
$ 115,897
¡,¡
+'
'"
.0
."
.r::
><
¡,¡
~
\
~
..........
COUNCIL AGENDA STATEMENT
Item:~
Meeting Date: 6/15/2004
ITEM TITLE:
Resolution approving the Memorandum of
Understanding between the City of Chula Vista and the ChuJa
Vista Elementary School District regarding joint operation of the
Dynamic After School Hours (DASH) after school recreational
program, and the Safe Time for Recreation, Enrichment, and
Tutoring for Children (STRETCH) extended school day
educational program; and authorizing the Mayor to execute the
MOU. ~
SUBMITTED BY: Assistant City Manager Palmer'1:7 0 v
REVIEWED BY: CitYManager~ví!/ (4/5ths Vote: Yes_No.lO
The current MOU between the City and the Chula Vista Elementary School District, in
effect until June 30, 2004, authorizes the operation of two after school programs at
elementary school sites. The STRETCH Program, with its emphasis on literacy and arts
enrichment, is currently offered at seven district schools. The existing MOU also
authorizes the operation of a structured sports and recreation program called DASH
(Dynamic After School Hours), at 21 district schools.
The intent of this report is to present an updated MOU between the City and the Chula
Vista Elementary School District for FY 2004-05, which includes expansion of the
DASH Program to three new sites. The Chula Vista Elementary School District Board
will be voting on the FY 2004-05 MOU at their June 15th, 2004 meeting.
STAFF RECOMMENDATION: That Council approve the Memorandum of
Understanding between the City of Chula Vista and the Chula Vista Elementary School
District regarding joint operation of the DASH (Dynamic After School Hours) after
school recreational program, and the STRETCH (Safe Time for Recreation, Enrichment,
and Tutoring for CHildren) extended school day educational program; and authorize the
Mayor to execute the MOU.
BOARDS/COMMISSIONS RECOMMENDATIONS: n/a
DISCUSSION:
The STRETCH and DASH programs continue to be a success, popular not only with
parents and school-age children, but with the City's partner, the Chula Vista Elementary
School District.
The City and the District are now ready to enter into a new Memorandum of
Understanding for FY 2004-05 (Attachment A). The new MOU authorizes:
/7 - I
Item: ~ Page 2
Meeting Date: 6/15/2004
. Expansion of DASH from 21 to 24 elementary school sites. These sites include:
Allen, Arroyo Vista, Casillas, Chula Vista Hills, Clear View, Cook, Discovery,
EastLake, Halecrest, Hedenkamp (new FY 05), Heritage, Hilltop, Kellogg,
Liberty (new FY 05) Thurgood Marshall, McMillin, Olympic View, Palomar,
Parkview, Rogers, Rosebank, Salt Creek (new FY 05),Tiffany, and VaJle Lindo
Elementary Schools.
. The addition of one fuJI-time DASH Supervisor.
.
Continuation of the STRETCH program at seven elementary school sites,
including Harborside, Lauderbach, Lorna Verde, Montgomery, Mueller, Otay, and
Rice Elementary Schools. (Additional state grant funding in FY 05 allows for an
increase in service from 60 children per day to 80 children per day at Lauderbach
Elementary. Harborside, Montgomery and Otay also serve 80 children per day; all
other sites serve 60.)
As in previous MOUs, the City will recruit, hire, train and supervise staff to conduct both
STRETCH and DASH. The District will actively promote communication, cooperation
and coordination among and between school personnel and city personnel.
FISCAL IMPACT:
The proposed FY2004-05 budget for STRETCH and DASH is $1,652,192. The City will
provide $599,012 (plus in-kind expenses), the Elementary School District will provide
$593,180 and the State will provide (via the District) $460,000. These funds will be
appropriated as part of the FY2004-05 budget.
17-2
RESOLUTION NO. 2004--
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA
AND THE CHULA VISTA ELEMENTARY SCHOOL DISTRICT
REGARDING JOINT OPERATION OF THE DASH (DYNAMIC
AFTER SCHOOL HOURS) AFTER SCHOOL RECREATIONAL
PROGRAM, AND THE STRETCH (SAFE TIME FOR
RECREATION, ENRICHMENT, AND TUTORING FOR
CHILDREN) EXTENDED SCHOOL DAY EDUCATIONAL
PROGRAM, AND AUTHORIZING THE MAYOR TO EXECUTE
THE MEMORANDUM OF UNDERSTANDING
WHEREAS, in FY 1998-1999 the City established a unique partnership with the Chula Vista
Elementary School District to examine the City's existing after school program offerings and, with
District input, to revamp them based on individual school needs and priorities; and
WHEREAS, the current Memorandum of Understanding (MOU) between the City and the
Chula Vista Elementary School District, in effect until June 30th, 2004, authorizes the operation of
the STRETCH Program with its emphasis on literacy, and arts enrichment, at seven district schools;
and the DASH Program, a structured sports and recreation program at 24 district schools; and
WHEREAS, the City and the District are prepared to enter into a new Memorandum of
Understanding for FY 2004-05, authorizing the continuation of DASH at twenty-one (24) elementary
school sites, and the STRETCH program at seven (7) elementary school sites; and
WHEREAS, an updated MOU between the City and the Chula Vista Elementary School
District for FY 2004-05 has been presented for approval.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City ofChula Vista does
hereby approve the Memorandum of Understanding between the City ofChula Vista and the Chula
Vista Elementary School District regarding joint operation of the DASH after school recreational
program and the STRETCH extended school day educational program, a copy of which shall be kept
on file in the office of the City Clerk.
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute said
Memorandum of Understanding.
Presented by
Approved as to form by
Do-- "7 . H--
David Palmer
Assistant City Manager
Ann Moore
City Attorney
j..lallorneylresolMOUISTRETCH and DASH 04-05
'-i -3
THE ATTACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORM BY THE CITY
ATTORNEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
Do.-? I+~
Ann Moore
City Attorney
Dated: June 9, 2004
MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF
CHULA VISTA AND THE CHULA VISTA ELEMENTARY SCHOOL
DISTRICT REGARDING JOINT OPERATION OF THE DASH AFTER
SCHOOL RECREATIONAL PROGRAM AND THE STRETCH EXTENDED
SCHOOL DAY EDUCATIONAL PROGRAM
I-) L I
I ! -" 1
Attachment "A"
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE CITY OF CHULA VISTA
AND
CHULA VISTA ELEMENTARY SCHOOL DISTRICT
This MOU is entered into by the City of Chula Vista and the Chula Vista Elementary
School District.
This is an agreement to operate an after school recreational program ("DASH" -
Dynamic After School Hours), and an extended school day educational program
(STRETCH - Safe Time for Recreation, Enrichment and Tutoring for CHildren) in Chula
Vista Elementary School District schools in FY 2004-2005.
The parties agree that the Chula Vista Elementary School District's shall:
0 Facilitate communication of the DASH and STRETCH Programs' missions, goals
and objectives to all participating school sites, in particular to principals, PTAs and
School Site Councils.
0 Actively promote cooperation and coordination among and between school sites and
all personnel involved in DASH and STRETCH activities.
0 Participate in the development and actualization of a plan to evaluate the DASH and
STRETCH programs.
0 Provide a staff liaison with the City as a key contact.
0 Coordinate the daily delivery of snacks for participating children through Child
Nutrition Services.
0 Provide the City of ChuJa Vista $1,053,180 in FY 2004-2005 towards the cost of
operating the DASH and STRETCH Programs, payable within 30 days of receipt of
four quarterly City of Chula Vista invoices of $263,295 each, on 7/15/04, 10/15/04,
1/15/05, and 4/15/05.
The parties agree that the City ofChula Vista's shall:
0 Provide a Library Department Manager to oversee and coordinate the DASH and
STRETCH Programs' activities, in cooperation with District staff.
0 Facilitate communication of the DASH and STRETCH Programs' missions, goals
and objectives to all participating staff.
0 Actively promote cooperation and coordination among and between school sites and
all personnel involved in DASH and STRETCH activities.
0 Participate in the development and actualization of a plan to evaluate the DASH and
STRETCH programs.
0 Operate the DASH Program at the following 24 District Schools: Allen, Arroyo
Vista, Casillas, Chula Vista Hills, Clear View, Cook, Discovery Charter, EastLake,
7-.5
Halecrest, Hedenkamp (new FY 04/05), Heritage, Hilltop, Kellogg, Libery (new FY
04/05), Thurgood Marshall, McMillin, Olympic View, Palomar, Parkview, Rogers,
Rosebank, Salt Creek (new FY 04/05), Tiffany, and Valle Lindo Elementary Schools.
0 Recruit, hire, and train 52 part-time DASH Leaders, under the supervision of 3 full-
time DASH Supervisors.
0 Operate the STRETCH Program at the following 7 District Schools: Harborside,
Lauderbach, Lorna Verde, Montgomery, Mueller, Otay, and Rice Elementary
Schools.
0 Recruit, hire, and train 7 part-time, benefited STRETCH School Site Coordinators,
and 30 part-time Youth Leaders, under the supervision of a full time STRETCH
Supervisor
0 Provide individual participating schools with detailed terms of agreement regarding
specific program hours, staffing, programming, shared use of facilities, etc.
0 Contribute the following:
$599,012 in STRETCH/DASH budgeted general funds; City wide overhead (human
resources, payroll, finance, MIS, purchasing, and other City Departments) - in kind.
0 Act as fiscal agent for the combined District and City funds the duties of which
include but are not limited to budgeting, appropriating, expending, tracking, and
reporting funds.
The parties agree that a joint decision-making panel shall continue to govern the DASH
and STRETCH Programs. The panel is comprised of the following District and City
employees:
Chula Vista Elementarv School District:
Assistant Superintendent for Community and Government Services
District Director of Early Intervention
City ofChula Vista
Assistant City Manager/Chula Vista Public Library Director
Educational Services Manager
The parties further agree to hold each other harmless each other against any and all
claims asserted or liability established for damages or injuries, including death, to any
person or property, including an officer, agent or employee of one of the parties, which
arise from or are connected with or are caused or claimed to be caused by the negligent
acts or omissions of the District or the City in carrying out the terms of this agreement;
provided, however, that no duty to hold harmless the other party shall arise or exist
regarding the established sole negligence or willful misconduct of that party.
CHULA VISTA ELEMENTARY
SCHOOL DISTRICT
CITY OF CHULA VISTA
By:
By:
Date:
Date:
/7-Þ
COUNCIL AGENDA STATEMENT
Item
Meeting Date
/8
6/15/04
ITEM TITLE:
Resolution Establishing the Appropriations Limit for
the City of Chula Vista for Fiscal Year 2004-05
Director of Financerrreasurer~
City Manage7; y ìY' (4/5ths Vote: Yes _No--1L)
SUBMITTED BY:
REVIEWED BY:
Article XI liB of the California Constitution approved by the voters in 1979 and commonly
referred to as the Gann Initiative, requires each local government to establish an
Appropriations Limit by resolution each year at a regularly scheduled meeting or noticed
special meeting. The purpose of the 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.
RECOMMENDATION: That the City Council adopt a resolution establishing an
appropriations limit of $406,875,338 for the 2004-05 fiscal year.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Article XIIiB of the California Constitution, approved by the voters in 1979, imposed the
concept of spending limits on local governments. This Constitutional provision and related
implementing legislation specifies that annual increases in appropriations financed from
"Proceeds ofTaxes" 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. By definition, "Proceeds of Taxes" includes such revenues as property
taxes, sales and use taxes, utility users 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.
This calculation has always been perfunctory for the City of Chula Vista, since the
proceeds of taxes for the City are far less than the statutory appropriation limit.
/1'-1
Page 2, Item If>
Meeting Date 6/15/04
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
appropriation limit. According to these sources, for purposes of the fiscal year 2004-05
calculation, the population increased 4.24% and California per capita personal income
increased by 3.28%. New non-residential construction increased 1.3% and was not used
in the formula to compute the limit since this increase was lower than the increase in
California per capita personal income.
The fiscal year 2004-05 Appropriation Limit has been calculated as follows:
Fiscal Year 2003-04 Appropriation Limit
$377,929,449
Increased by an inflation factor composed
of the increases in population and California
per capita personal income
X 1.0766
Fiscal Year 2004-05 Appropriations Limit
$406.875.338
The "Proceeds of Taxes" as included in the fiscal year 2004-05 Proposed Budget that are
subject to the appropriations limit are estimated to be $67,463,884 (see attachment).
Therefore the City has what is referred to as an appropriation "gap" of $342,059,864
($406,875,338 - $67,463,884). Simply stated, this means that the City could collect and
spend up to $339,411 ,454 more in taxes during fiscal year 2004-05 without exceeding the
Constitutional limit.
FISCAL IMPACT: This action will enable the City to appropriate and spend tax revenues
estimated at $67,463,884 included in the proposed budget for fiscal year 2004-05.
If 2...
ATTACHMENT
APPROPRIATION (GANN) LIMIT GAP CALCULATION
FOR FISCAL YEAR 2004 - 05
Proceeds of Taxes
Property Taxes
Sales and Use Taxes
Transient Occupancy Taxes
Utility Taxes
Other Local Taxes
Real Property Transfer Tax
Business License
State Motor Vehicle Licenses
State Homeowners Property Taxes
Total Proceeds of Taxes
Appropriation Limit
GAP (Under Limit)
FY 2004-05 Proposed Budget
$19,158,422
23,723,617
2,328,307
5,367,651
1,587,416
1,076,400
14,022,071
200,000
67,463,884
406,875,338
($339,411,454)
/1,3
RESOLUTION NO. 2004--
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ESTABLISHING THE
APPROPRIATIONS LIMIT FOR THE CITY OF CHULA
VISTA FOR FISCAL YEAR 2004-05
WHEREAS, Article XIIIB of the California Constitution approved by the voters in 1979 and
commonly referred to as the Gann Initiative, requires each local government to establish an
Appropriations Limit by resolution each year at a regularly scheduled meeting or noticed special
meeting; and
WHEREAS, the purpose of the 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.
NOW, THEREFORE, BE IT RESOLVED that the City Council ofthe City of Chula Vista
does hereby establish an appropriations limit of$406,875,338 for the 2004-05 fiscal year.
Presented by
Approved as to form by
Maria Kachadoorian
Director of Finance
~l;r~~f{
w.
t/J{
City Attorney.
J:lAttomeylRESOlAppropriation Limit for FY 2004-05.doc
/f~r
COUNCIL AGENDA STATEMENT
/0,
ITEM
MEETING DATE: June 15.2004
ITEM TITLE:
Resolution of the City Council of the City of Chula Vista approving an
adjustment of the Mayor and City Council benefits packages and
directing staff to adjust the Fiscal Year 2005 proposed budget
accordingly.
SUBMITTED BY: Director of Human Resourceslh ' ~
The resolution will direct staff to adjust the car allowance for the Council by $450 per
month. In addition, it directs staff to increase the expense account for the Mayor by $400
per month and the Council by $200 per month, and increases the flexible benefit amounts
for the Council to be consistent with the Executive Flex Plan. Adoption of the resolution
approves these benefit adjustments. (Director of Human Resources)
REVIEWED BY: City Manager» (4/5th Vote: Yes - NolL)
SUMMARY:
RECOMMENDATION:
Adopting the resolution approving an adjustment of the Mayor and City Council benefits
packages and directing staff to adjust the Fiscal Year 2005 proposed budget accordingly.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION:
The above recommended adjustments recognize the additional policy involvement and
expanded regional participation that Council members have taken on as the City's
importance in the region has grown. It also recognizes the expanded leadership role the
Mayor is assuming in regional and statewide issue that affect the city. Additionally, most
jurisdictions tie the benefits packages of their Mayor and Council members to their
Executive or Managerial level benefit package.
The following actions are recommended:
1.
That Councilmembers' Flex Plans be consistent with the Executive Level, which
will be an increase of $3,698, from $7,394 to $11,092 per year. The Mayor is
already at this level.
2.
That Councilmembers' car allowances be consistent with the Executive Level,
which will be an increase of $450 per month, from $100 per month to $550 per
month.
3.
Thatthe monthly Expense Accountforthe Mayor be increased $400 per month,
from $600 per month to $1,000 per month, and that the monthly Expense
Account for Councilmembers be increased $200 per rpg,nth, from $300 per
month to $500 per month. / q -I \)
ITEM
ICf
MEETING DATE: June 15.2004
FISCAL IMPACT:
The total cost of the Mayor and Council benefits package adjustments is $53,792. This
amount is included in the proposed FY05 budget, which will be presented to Council at the
joint meeting of the City Council and the Redevelopment Agency, June 15, 2004
2
/q--f)-
RESOLUTION NO. 2004--
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN ADmSTMENT OF THE
MAYOR AND CITY COUNCIL BENEFITS PACKAGES AND
DIRECTING STAFF TO ADmST THE FISCAL YEAR 2005
PROPOSED BUDGET ACCORDINGLY
WHEREAS, the resolution directs staff to adjust the car allowance for the Council by
$450.00 per month; and
WHEREAS, the resolution further directs staff to increase the expense account for the
Mayor by $400.00 per month and the Council by $200.00 per month; and
WHEREAS, the resolution increases the flexible benefit amounts for the Council to be
consistent with the Executive Flex Plan; and
WHEREAS, the above adjustments are in recognition of the additional policy
involvement and expanded regional participation of Councilmembers, and the expanded
leadership role the Mayor is assuming in the region and the State; and
WHEREAS, it is also in recognition that in most jurisdictions, the Councilmembers'
benefit packages are tied to the Executive Level.
WHEREAS, staff recommends the following:
1.
That Councilmembers' Flex Plans be consistent with the Executive Level, which will
be an increase of $3,698, from $7,394 to $11,092 per year.
2.
That Councilmembers' car allowances be consistent with the Executive Level, which
will be an increase of $350 per month, from $100 per month to $450 per month.
3.
That the monthly Expense Account for the Mayor be increased $400 per month, ITom
$600 per month to $1,000 per month, and that the monthly Expense Account for
Councilmembers be increased $200 per month, from $300 per month to $500 per
month.
4.
That if the Council approves an increase of $250 per month in car allowance for the
City Manager, from $750 per month to $1;000 per month, the Mayor will receive a
similar adjustment. Presently, the Mayor's car allowance is consistent with the City
Manager's.
WHEREAS, the total amount of the Mayor and Council compensation package adjustments
is $53,792 and is included in the proposed FY05 budget.
/1,,3
NOW, THEREFORE, BE IT RESOLVED that the City Council of City of Chula Vista
does hereby adopt the resolution approving an adjustment of the Mayor and City Council benefits
packages and directs staff to adjust the Fiscal Year 2005 proposed budget accordingly.
Presented by:
Approved as to form by:
Marcia Raskin
Director of Human Resources
(p~~
Ann Moore
City Attorney
lAttomey/Reso/Benefits Mayor and City Council Adjustments
/q-f
COUNCIL AGENDA STATEMENT
::;0
ITEM
MEETING DATE June 15.2004
ITEM TITLE:
Resolution of the City Council of the City of Chula Vista approving a
salary equity adjustment for the City Attorney, City Clerk and City
Manager and directing staff to adjust the Fiscal Year 2005 proposed
budget accordingly
SUBMITTED BY: Director of Human Resources 1Vl. ~
The City recently surveyed the current salaries of the City Attorney, City Clerk and City
Manager and found they have fallen below their peer agencies throughout the State and
should be adjusted at this time to bring them up to the recommended amount. Adoption of
the resolution approves the equity salary adjustments (Director of Human Resources)
REVIEWED BY: City Manage~ (4/5th Vote: Yes - No..x>
SUMMARY:
RECOMMENDATION:
Adopting the resolution approving a salary equity adjustment for the City Attorney, City
Clerk and City Manager and directing staff to adjust the Fiscal Year 2005 proposed budget
accordingly.
BOARD/COMMISSION RECOMMENDATION: N/A
DISCUSSION: Based upon the above-mentioned survey, the following salary equity
adjustments are approved:
Official
City Attorney
City Clerk
City Manager
% Increase From
15.6% $173,149
10.3% $113,299
12.0% $191,923
To
$200,000
$125,000
$215,000
In addition, the City Manager's car allowance was increased by $250, from $750 to
$1000 per month.
FISCAL IMPACT:
The total amount of the equity adjustments and associated benefits is $84,592 and will be
included in the proposed budget for FY2005 which will be presented to Council at the joint
meeting of the City Council and the Redevelopment Agency, June 15, 2004.
..:2.0 -I
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING A SALARY
EQUITY ADJUSTMENT FOR THE CITY ATTORNEY,
CITY CLERK AND CITY MANAGER AND DIRECTING
STAFF TO ADJUST THE FISCAL YEAR 2005 PROPOSED
BUDGET ACCORDINGLY
WHEREAS, the City recently surveyed the current salaries of the City Attorney,
City Clerk and City Manager and found they have fallen below their peer agencies
throughout the State and should be adjusted at this time to bring them up to the
recommended amount; and
WHEREAS, the following salary equity adjustments are approved:
Official
City Attorney
City Clerk
City Manager
% Increase
15.6%
10.3%
12.0%
From
$173,149
$113,299
$191,923
To
$200,000
$125,000
$215,000
WHEREAS, in addition, the City Manager's car allowance was increased by
$250, from $750 to $1000 per month.
THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby approve a salary equity adjustment for the City Attorney, City Clerk and
City Manager and directing staff to adjust the fiscal year 2005 proposed budget
accordingly.
Presented by
Approved as to form by
Marcia Raskin
Director of Human Resources
~IV
Moore ~
City Attorney
j'Attomey/Reso/Benefits/Salary Equity Adjustments
~ -.,.L
~,~
~--
Council Agenda Statement
mY OF
(HUlA VISTA
ITEM TITLE:
Item: ,;;LI
Meeting Date: June 15. 2004
Resolution Ratifying and Approving a $50,000
"Proposition 12" Grant Application Submitted to the California
Department of Forestry and Fire Protection to Fund the Planting of
460 Trees in the City.
Director, Conservation and Environmental Services ~
Environmental Resource Manager W
City ManagerCß.- v g
/1 f)l (4/5ths Vote Yes - No~)
SUBMITTED BY:
REVIEWED BY:
On April 30, City staff submitted a grant application to the California Department of
Forestry and Fire Protection ("CDF") for $50,000 to fund a project to plant 460 trees in
City public "right-of-way" during calendar years 2005 and 2006. The goal of the project
is to reduce the impact of urban heat island effect on the City. This goal supports the
City's CO2 Reduction Plan ("CO2 Plan") adopted in November 2000 and supports the
Department of Conservation and Environmental Services (CES) mission to promote
resource conservation. The grant requires a resolution from Council approving the
application before a grant can be awarded.
On warm summer days, the air in urban areas can be 6-8°F hotter than its surrounding
areas. Scientists call these cities "urban heat islands." The higher temperature in urban
heat islands increases use of air conditioning, which in turn raises pollution levels by
increasing demand on power plants. The "heat island effect" is caused by dark
surfaces such as streets and rooftops that absorb more heat from the sun. Planting
more trees will provide shade, help to cool the air and reduce overall citywide energy
use.
If the grant is awarded, CES will provide $12,500 in matching funds to assist residents
and schools plant trees in front of their property, in the public right-of-way. The
Environmental Resource Manager, in the CES Department, will administer the project
and coordinate the participation of outside agencies and other City departments. CES
will partner with People for Trees (PFT), a not-for-profit organization established in
1989. In 2003, CES partnered with PFT to assist 150 residences plant approximately
650 trees in Chula Vista on private residential properties. PFT will assist the
Environmental Resource Manager with this project by coordinating tree planting events
and providing all required supplies, including trees, for planting, to residents and
schools. The City Arborist, in the Public Works Operations Department, will support the
~/-/
Page 2 of 6
Meeting: June 15. 2004
project by assisting with tree selection and preparing site-planting locations for tree
planting, in accordance with CDF and the City's tree planting guidelines. .
CDF requires that the grant applications include a resolution authorizing submittal of the
grant application.
RECOMMENDA nON:
Council adopt the resolution to ratify and approve a $50,000 "Proposition 12" grant
application submitted to the California Department of Forestry and Fire Protection to
fund the planting of 460 trees in the City.
BOARD AND COMMISION RECOMMENDATION:
Not Applicable
DISCUSSION:
ProDosition 12
Under Proposition 12, the Watershed, Wildlife and Parks Improvement Bond Act of
2000, an allocation of $10,000,000 was given to the CDF, Urban Forestry Program to
implement tree planting in urban settings. The purpose of the Urban and Community
Forestry Program is:
. To create sustainable urban forests,
. To help improve the quality of life in urban environments,
. To promote increased awareness in the proper planting and care needed to foster
healthy community forests, and
. To incorporate community involvement, participation, education and stewardship of
urban forests.
Through competitive grant application, Proposition 12 allocates $1,175,000 for cities,
counties, districts and not-for-profits in calendar years 2005 and 2006. The City filed
an application on April 30, 2004 for $50,000. The deadline to file an application was
May 3, 2004. Grant awards will be announced on July 1, 2004. Grant activities must be
completed by March 1, 2007.
To ensure that the City preserved its opportunity to compete for these funds, the
Conservation and Environmental Services Department partnered with the Public Works
Operations Department and PFT to develop and file the grant application without a
resolution. The grant requires a resolution from Council approving the application
before it can be awarded.
02/- 1-
Page30f6
Meeting: June 15, 2004
Chula Vista Urban Heat Island Mitiaation Project
The City of Chula Vista's CO2 Plan was developed in 1996 as a tool to reduce the
effects of Carbon Dioxide on the environment. The Environmental Resource Manager
is responsible for implementing transportation and energy related measures of the CO2
Plan. The City Council adopted the CO2 Plan in November 2000. Development of the
Plan included citizen participation through a task force representing the development
and business community, local and state government and City staff. The CO2 Plan
consists of twenty action measures intended to promote clean fuel vehicles, alternatives
to driving, transportation efficient land use planning, and energy efficient building
construction. Measure 14 - Energy Efficient Landscaping promotes the "strategic
planting," of shade trees for new single-family residences as part of a citywide tree
planting effort.
Volunteer based tree planting projects, in older neighborhoods, are a cost effective way
to provide public education and community support to achieve the following benefits:
. Improves watershed management,
. Improves property values,
. Improves air quality from reduced smog formation,
. Improves aesthetics of City streets,
. Enhances recreational areas,
. Increases energy conservation,
. Provides traffic calming benefits for streets,
. Provides new wildlife habitat,
. Reduces ambient temperatures
. Reduces energy use,
. Reduces CO2 concentrations through photosynthesis, and
. Reduces noise.
The goal of the "Chula Vista Urban Heat Island Mitigation Project" will be to present a
project where the Conservation and Environmental Services Department, Public Works
Department, PFT, residents, and volunteers will work together to plant trees in the right
places and provide long-term maintenance that will ensure long-term benefits.
The Environmental Resource Manager, with assistance from PFT and the City Arborist,
will integrate volunteer tree-planting efforts with the Public Works Operations
Department's "Urban Reforestation Program" to plant trees in City public right-of-way, to
educate the public. facilitate community involvement, and inspire support for tree
maintenance in urban residential areas. The City Arborist, in the Public Works
Operations Department, will assist residents and schools with tree selection and
excavation of tree planting locations, in accordance with the City's tree planting
guidelines.
.:21.,3
Page 4 of 6
Meeting: June 15. 2004
City Grant Commitments
The grant application requires the City to provide $12,500 or 25% of the total $50,000
grant request in matching funds or in in-kind services. Staff proposes to facilitate public
participation in the tree planting by providing $12,500 in matching funds, from
unexpended Conservation and Environmental Services funds, to assist residents and
schools with site preparation and excavation for trees.
The grant also requires the City to commit to providing long-term care of the trees for at
least three years after planting. In the grant application, the City's Public Works
Operations Director, Dave Byers, certified that the City will take responsibility for long-
term maintenance of the trees.
City Partnership With PFT
In 2003, PFT and the City formed an informal partnership to assist residents in planting
free trees on their property through a Public Goods Fund program, previously funded by
the California Public Utilities Commission and managed by the San Diego Regional
Energy Office in Chula Vista. One hundred fifty City residents planted approximately
650 trees on private property in Chula Vista. The majority of the trees were planted in
the Castle Park and western area of Chula Vista.
The grant proposal proposes to plant up to 460 additional trees on public right-of-way to
help mitigate the impact of urban heat island effect on the community. PFT will support
the project by assisting with advertising, recruiting participants, coordinating tree
planting events, providing all required supplies including trees, and filing all required
grant reports to the CDF. PFT's support will be funded by grant funds and the City's
matching funds.
Summary Of Project Work Plan. Timeline And Budaet
Workclan Summary
The Environmental Resource Manager will notify the City Council once the grant has
been awarded and will direct implementation of the project, with support from the Public
Works Operations Department and PFT staff. The target area for this program will be
west of 1-805, from C Street to the north and Main Street to the South. These
boundaries include some of Chula Vista's oldest neighborhoods, which have a limited
number of parkways and street trees. The City Arborist, in the Public Works
Department, and PFT will work together to identify sites that will accommodate large
canopy trees to provide maximum environmental benefits. The sites will include
schools, parks, and street parkways in residential areas and spaces around public
buildings.
The Environmental Resource Manager will promote the community tree plantings
project by sending correspondence to community planning groups, placing notices in
;(/-i
Page50f6
Meeting: June 15. 2004
community newspapers, and holding public meetings announcing the tree planting
opportunity.
Tree Selection
The City Arborist will oversee tree selection and siting. Chula Vista's list of approved
trees is the guide for appropriate tree selection in both the public building areas and in
the street right-of-ways - see Table 1 below. A City and PFT Arborist will ensure the
trees will not interfere with utilities.
Table 1: List of ADDroved Trees
Evergreen VOC- Low,
Species Height Moderate,
Deciduous Hiqh
Aoonis fiexuosa (Peppermint Willow) 35 E H
Albizia iulibrissin (Mimosa/Silk Floss) 25 D M
Bauhinia DUrDUrea (PurDie Orchid) 50 D M
Cassia leptophvlla (Gold Medallion) 30 D Not Known
ChitalDa taskentensis (ChitaIDa) 30 D Not Known
Cinnamomum camDhora (Camphor) 65 E L
Eriobotrva defiexa (Bronze Loauat) 25 E L
EucaivDtus Dolvanthemos (Silver Dollar Gum) 75 E H
HvmenosDorum fiavum (Sweetshade) 35 E L
Jacaranda mimosifolia (Jacaranda) 40 D L
Koelreuteria biDinnata (Chinese Flame) 35 D H
Liouidamber stvracifiua (American Sweet Gum) 60 D H
Maonolia orandifiora (Southern Maanolia) 65 D M
Metrosideros excelsus (New Zealand Christmas tree) 35 E H
Pistacia chinensis (Chinese Pistache) 50-65 D M
Pinus canariensis (Canarv Island Pine) 80 E M
Pinus elderica (Afahan Pine) 80 E Not Known
Platanus x acerifolia (London Plane "Bloodnood" 65 D H
PodocarDUS aracilior (Fern Pine) 65 E L
Pvrus callervana Bradford Pear) 30 D L
Sapium sebiferum (Chinese Tallow) 35 D Not Known
Tristania conferta(Brisbane Box) 50 E H
Ulmus Darvifolia (Chinese Elm) 50 D L
Maintenance Plan
Property owners who receive a tree in front of their property will be required to complete
and sign a maintenance form agreeing to provide water and care for the tree for up to
three years. The Public Works Operations Department will commit to provide long-term
care for the trees three years after planting.
dJ/ .. S-
Page 6 of 6
Meeting: June 15, 2004
Itemized Project Budaet
This itemized project budget includes an estimate of costs required to carry out the
proposed project based on quotes received from nurseries and product suppliers.
Estimates are as specific as possible and include eligible expenses, as set forth in the
grant application guidelines.
Description of Expense:
State
Local
Tree stock:
. Trees, 15-gallon (incl. Tax)
460 @ $55
Planting materials:
Stakes, Ties, Mulch & Materials
460 @ $20
25,300.00
9,200.00
Labor:
PFT Staff Expense
460 hours @ $30 Per Hour
City of Chula Vista Public Works
Staff Expenses- 460 Excavations
PFT Volunteer Hours
720 @ $17.19 Per Hour
13,800.00
12,500.00
12,376.80
(In-Kind not included in
state/local funds)
Educational materials:
Educational Materials/Printing
Prop 12 Signage
1,000.00
700.00
Total Grant Request:
$50,000.00
(State funds)
$12,500.00
(Local funds)
$12,376.80
(Volunteer
Services)
The total value of the project is $74,876.80. This includes $50,000 from the state grant,
$12,500 in local matching funds and $12,376.30 in in-kind volunteer services from PFT.
As stated above, approval of this resolution will allow staff to implement the project, if
the grant is awarded.
FISCAL IMPACT:
Approval of this resolution will not result in a fiscal impact to the general fund. If the
grant is approved, CES will return to Council for approval to accept the grant and
request appropriations of funds. The required expenditures will result in $62,500 of
expenditures in FY 2005/2006. These expenditures will be offset by $50,000 in state
grant revenues and $12,500 of unexpended Conservation and Environmental Se~ices
funds encumbered in FY 2003/2004.
) /
0<.1 " ip
RESOLUTION NO. 2004--
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA RATIFYING AND APPROVING A $50,000
"PROPOSITION 12" GRANT APPLICATION SUBMITTED TO
THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE
PROTECTION TO FUND THE PLANTING OF 460 TREES IN
THE CITY
WHEREAS, the Governor of the State of California in cooperation with the California
State Legislature has enacted Proposition 12, which provides funds to the State of California and
its political subdivisions for urban forestry programs; and
WHEREAS, the State Department of Forestry and Fire Protection has been delegated the
responsibility for the administration of the program within the State, setting up necessary
procedures governing application by local agencies and non-profit organizations under the
program, and
WHEREAS, said procedures established by the State Department of Forestry and Fire
Protection require the City to certify by resolution the approval of application before submission
of said application to the State; and
WHEREAS, the City submitted a grant application on April 30, 2004 and will enter into
an agreement with the State of California to carry out a tree planting project; and
WHEREAS, the planting of 460 trees will mitigate the impact of urban heat island effect
caused by dark surfaces such as streets and rooftops that absorb more heat from the sun.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby:
1.
Approve the filing of an application for "PROPOSITION 12" tree planting grant program
funds; and
2.
Certifies that said applicant has or will have sufficient funds to operate and maintain the
project; and,
3.
Certifies that funds under the jurisdiction of City of Chula Vista are available to begin the
project.
4.
Certifies that said applicant will expend grant funds prior to March 1,2007.
5.
Appoints the City Manager as agent of the City of Chula Vista to conduct all
negotiations, execute and submit all documents including, but not limited to applications,
~/-7
agreements, amendments, payment requests and so on, which may be necessary for the
completion of the aforementioned project.
Presented by
Approved as to form by
Do..v:.... l. \-+~
Michael Meacham
Director, Conservation &
Environmental Services
Ann Moore
City Attorney
.),
~/~P
COUNCIL AGENDA STATEMENT
Item No.: :-~
Meeting Date: .6L.l..iLO.4
ITEM TITLE:
Urgency Ordinance of the City Council of the City of Chula Vista
Amending Section 19.48.020 of the Chula Vista Municipal Code, Deleting
Paragraph 'B' to Eliminate the requirement for Unified Control of
Property within the P-C Zone.
Oirectoc of P""'""g ~d Bw1,""< ~
G~
City Manager fi)~ (4/5ths Vote: Yes ~o ----J-
SUBMITTED BY:
REVIEWED BY:
This report addresses the deletion of a provision from the Municipal Code that currently requires
unified control of all land withing a P-C Zone. It is offered as an urgency measure due to matters
of public health, safety and welfare associated with the timely delivery of a needed public
facility.
RECOMMENDATION:
Staff recommends that, in order to protect the public's health, safety and welfare, the City
Council adopt the attached urgency ordinance that would delete Paragraph B of Section
19.48.020 of 1he Chula Vista Municipal Code, and make other such changes elsewhere in the
Code, if necessary, for consistency with that deletion.
BOARDS/COMMISSIONS RECOMMENDATION:
On March 24, 2004, the Planning Commission conducted a public hearing on the proposed
amendment, together with an amendment to the Otay Ranch General Development Plan. The
Planning Commission adopted a resolution recommending that the City Council approve both
actions, by vote of 7-0. As part of the motion, the Planning Commission clarified that additional
revisions should be allowed for the purpose of making other changes elsewhere in the Municipal
Code for consistency with that deletion.
On May 18, 2004, the City Council adopted the permanent revision to the Municipal Code together
with an urgency version of the same ordinance. The urgency ordinance forwarded with this item is
identical, except that it incorporates reference to this earlier action.
f)é)-I
Page 2, Item: :¿~
Meeting Date: -6Ll5LQ4
ENVIRONMENTAL REVIEW:
The Environmental Review Coordinator has determined that the proposed activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines and, therefore, pursuant
to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
DISCUSSION:
Description of the Existing Zoning Provisions
Chula Vista Municipal Code Section 19.48.020 requires that, for a development application to be
filed within the P-C zone, the subject property must be under the unified control of the applicant-
owner. The reason for this is that the City does not entertain development applications without
the consent of the property owner to which those applications directly apply. However,
paragraph 'B' of the Section goes further, and requires that the establishment of a P-C Zone must
meet a 'unified control' test of either,
I. Being owned outright by the applicant; or
2. Through unanimous written consent, since, "the written consent or agreement of all owners in
a P-C zone to the proposed general development plan and general development schedule shall
be deemed to indicate unified control" (Municipal Code Section 19.48.020.B).
The P-C zone associated with the ORGDP has hundereds of property owners, the majority being
homeowners of the many subdivisions approved since the adoption of the plan, which argueably
would require their 100% written consent to any action related to a P-C Zone, including a GDP
amendment.
Municipal Code Amendment
On May 18, 2004 the City Council approved both an Ordinance and an Urgency Ordinance to
delete Municipal Code Section 19.48.020 B., which required unified control of villages within
the City. The purpose of the Urgency Ordinance, which expires in 30 days, is to allow the
Municipal Code deletion to take immediate effect until the Ordinance is in full force and effect.
Urgency Ordinance
An Urgency Ordinance version of the same Municipal Code Amendment has been noticed and is
recommended for approval, since the Urgency Ordinance as approved on May 18, 2004 will
expire on its own terms. It is forwarded for the same purposes and reasons as discussed above.
This Urgency Ordinance is intended to allow for the proposed amendment to the Municipal Code to
take effect immediately, and requires a 4/5ths vote of the City Council. The Urgency Ordinance
2
f)é}-d-
Page 3, Item:~
Meeting Date: -6LJ..5LO4
contains findings related to public health, safety and welfare associated with the timely delivery of a
needed public facility. In this instance the amendment is needed so that changes in the Otay Ranch
General Development Plan necessary to implement a high school within Village 7 of Otay Ranch
take place on a schedule necessary to meet the needs of the Sweetwater Union High School District
and families within the City. Urgency ordinances have a limited time in which they apply and
staff will, if need be, return to Council with another urgency ordinance to cover the time before
the permanent ordinance takes effect.
FISCAL IMPACT:
Preparation of this amendment was completed as part of the ongoing work on Otay Ranch
Sectional Planning Area plan for Village 7, which is funded by a developer deposit account. To
the extent that the amendment relieves the City of the obligation to participate and verify the
consent of many property owners to each amendment, the change would represent a potential
cost saving.
RIPLANNING\JimH\UrgencyExtend\CC- STFRPT SegMCO61504AReview.doc
3
~;).-3
ORDINANCE NO. -----
URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING SECTION 19.48.020 OF THE CHULA VISTA
MUNICIPAL CODE, DELETING PARAGRAPH '8' TO ELIMINATE THE
REQUIREMENT FOR UNIFIED CONTROL OF PROPERTY WITHIN THE
P-C ZONE
WHEREAS, Chula Vista Municipal Code Section 19.48.020 establishes ownership and
minimum acreage restrictions regarding the establishment and modification of the P-C zone and
implementing general development plans and general development schedules; and
WHEREAS, Chula Vista Municipal Code Section 19.48.020.B, states, in its entirety, that,
"All land in each P-C zone, or approved section thereof, shall be held in one ownership or under
unified control unless otherwise authorized by the planning commission, except as provided for
in CVMC 19.48.060. For the purposes of this chapter, the written consent or agreement of all
owners in a P-C zone to the proposed general development plan and general development
schedule shall be deemed to indicate unified contro1."; and
WHEREAS, as properties within a given P-C zone district are subsequently planned,
subdivided and disposed, the number of property owners within such district makes unified
control, as defined, a practical impossibility as a requirement for applications for modification of
the P-C zone and implementing general development plans and general development schedules;
and
WHEREAS, there is urgent need for the construction of certain school facilities identified
by the Sweetwater Union High School District, namely the District's High School #13, for which
project alternatives rely in part on infrastructure extensions associated with entitlment
applications currently being sought by private developers with the timely delivery of a needed
public facility, and thus the amendment is needed so that changes in the Otay Ranch General
Development Plan necessary to implement a high school within Village 7 of Otay Ranch may take
place on a schedule necessary to meet the needs of the Sweetwater Union High School District; and
WHEREAS, urgency ordinances must be adopted by a four-fifths vote; and
WHEREAS, the Environmental Review Coordinator has determined that the proposed
activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines and,
therefore, pursuant to Section l5060(c)(3) of the State CEQA Guidelines the activity is not
subject to CEQA; and
WHEREAS, the Planning Commission held a duly noticed public hearing on March 24,
2004 and has forwarded a recommendation to the City Council to adopt the proposed Zoning
Ordinance amendments and additions.
WHEREAS, On May 18, 2004, the City Council adopted the permanent revision to the
Municipal Code, together with an urgency version of the same ordinance.
dd-if
Page 2
NOW, THEREFORE, the City Council of the City ofChula Vista does hereby ordain:
SECTION I. That the City Council of the City of Chula Vista finds that it is necessary to adopt
this change to the Municipal Code and for this change to go into effect immediately in order that
current entitlement processing within Otay Ranch not be delayed to the detriment of the wlfare
of students within the City. The City Council finds that there is urgent need for the construction
of certain school facilities identified by the Sweetwater Union High School District, namely the
District's High School #13, for which project alternatives rely in part on infrastructure extensions
associated with entitlement applications currently being sought by privated developers. The
prospect of potential delay in entitlements related to the current Municiapal Code provision
constitutes a current immediate threat to the public health, welfare and safety justifying the
immediate adoption of this amendment.
SECTION II. That Section 19.48.020 of the Chula Vista Municipal Code is amended as follows:
19.48.020 Regulations generally - Minimum acreage - Ownership restrietions.
A-. P-C zones may be established on parcels of land which are suitable for, and of
sufficient size to be planned and developed in a manner consistent with, the purpose of
this chapter and the objectives of this title. No P-C zone shall include less than 50 acres
of contiguous lands.
B. ;\ll hmd iR eaeh P C ZORe, or approved seetioR thereof, shall Be held iR ORe o...mersffip or
lffider uffified eeRtrol ¡¡RIess otherwise Iffitaorized BY the plamJ.iRg eommissioR, exeapt ao
pro'Úded for iR CVMC 19.~8.léO. For the puFj3oses of tills eaapter, the ',vritteR eORseRt er
agreemeftt ef all o...{fteFS ¡R a P C zeRO to the proposed geReral develepffieftt plilH aRd gefleral
develepmeRt sehedllle shall Be deemed te iadieate ¡¡RiRed eÐatro1.
SECTION III. That other amendments elswhere in the Municipal Code shall be made as may be
necessary to achieve consistency with the foregoing action.
SECTION IV. This ordinance shall be of no further force and effect 30 days after its adoption.
SECTION V. This Ordinance shall become effective immediately upon four-fifths vote.
Submitted by
Approved as to form by
James D. Sandoval, AICP
Planning and Building Director
ff~~frtc~
Ann et7
City Attorney
dd-5
CITY COUNCIL AGENDA STATEMENT
Item: 2.3
Meeting Date 06/15/04
ITEM TITLE:
Report: Proposed Growth Management Work Program
SUBMITTED BY: Director of Planning and BUildin~
REVIEWED BY:
r;i"
City Manager 1,1 Q~
(4/5ths Vote: Yes _NoXj
On May 27,2004 the City's growth management consultant, Walter Kieser from Economic and
Planning Systems, Inc., presented to Council a White Paper with options regarding the City's growth
management program. Based on Council's response, a proposed work program has been prepared.
RECOMMENDATION:
That Council provides guidance on the proposed work program.
BOARDS/COMMISSIONS RECOMMENDATION:
In it's 2002 Annual Report, presented on June 12, 2003, the Growth Management Oversight
Commission supported the Council's call for the "top to bottom" review of the growth management
program.
DISCUSSION:
A proposed narrative work program (Attachment I) has been prepared by the consultant in
collaboration with City staff. The Work Program provides information on the proposed content to
follow-up on Council's direction to:
Investigate revising threshold standards recognizing emerging policy objectives within
Western Chula Vista versus the suburban new development focus of the existing threshold
standards. These revised thresholds will reflect the emerging urban character of the Urban
Core and possibly other redeveloping portions of western Chula Vista.
Develop amended threshold standards based upon an assessment of the current threshold's
utility, to reflect new service delivery methods and measurement techniques.
Prepare proposed techniques that allow control of development activity beyond current
methods that will provide the Council with flexibility of response. While an annual city-
wide growth "cap" that sets a specific upward limit upon the number of residential units that
2?-1
Page 2, Item No, ~
Meeting Date: 06/15/04
are issued building permits for the purposes of controlling the rate of growth is not
contemplated by this work program, the ability to establish short term controls to address or
avoid a threshold violation is suggested to be analyzed as a tool. This could result in
establishing a program such as the current "Permit Monitoring Program" as an example.
Investigate improved regional and intergovernmental cooperation efforts for threshold
compliance not within the City's jurisdiction.
With the initial Council direction received on May 27, 2004, and further comments this evening,
each of the 4 components will proceed on interrelated parallel tracks in revising the growth
managernent element of the general plan. The Growth Management Oversight Commission and the
General Plan Update Steering Committee will be solicited for their comments and recommendations
on various aspects of the growth management program. For example, the General Plan Steering
Committee as well as the GMOC win review proposed revisions to the General Plan Growth
Management Element. The GMOC will also be involved in potential changes to the current GMOC
process. In addition, staff from affected City departments and external agencies will be involved as
essential participants in the review process. Ultimately, revisions to the growth management
program will be comprised of a new Growth Management Element of the General Plan and a new
Growth Management Ordinance for Council action.
The new Growth Management Element will be drafted by mid July 2004. The updated growth
management ordinance will be in the drafting process concurrent to the element but will not be in
final draft from until late summer. The Growth Management Program will be the subject of a
separate process that follows both the Growth Management Element and ordinance, and is expected
to be drafted during the fall of2004.
FISCAL IMPACT:
None at this time. This work is part of the contract for services entered into with Economic and
Planning Systems, Inc.
Attachments
Attachment 1: Growth Maoagement Program Wark Program
2.3-2
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Planning Systems
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MEMORANDUM
To:
Dan Forster, Growth Management Coordinator
Walter Kieser
From:
Subject:
Refinement Contract Scope of Work, Chula Vista Growth Management
Program; EPS #14022
June 9, 2004
Date:
This Memorandum outlines a proposed direction for subsequent consultant work effort
in Task 2 of our Scope of Work. Task 2 contemplated technical assistance with the
redrafting the Growth Management Ordinance. The research conducted as a part of
preparing the White Paper, the City staff interaction, and the guidance from the City
Council received at the May 27th meeting, all provide a basis for the technical effort
required prior to amending the Growth Management Ordinance. I have considered
each of these in formulating a proposed focus for the Task 2 effort, as outlined below.
Following City review we can finalize this direction and proceed with the work effort.
THRESHOLD STANDARDS FOR URBAN DENSITY AREAS
The key changes to the Growth Management Ordinance related to the Urban Density
Area (e.g. the Urban Core Area) relate to the traffic threshold, although each of the
threshold standards should be considered for there applicability to urban density areas.
Regarding the transportation threshold, there appears to be general agreement that a
revised urban standard is needed to complement the desired level of urban
intensification and development in these areas. The work required here is collaboration
with City Department of Engineering staff and their transportation consultants to
develop the technical and policy components of the new threshold.
.
The technical efforts include modification of the traffic modeling efforts to reflect
differential trip generation from urban mixed use areas, including demographic
differences in households, the greater propensity of "internal trips", and the greater
use of alternative modes of transportation including transit. It is presumed that
these modifications will be applied to the results of the ongoing traffic modeling
efforts. There will also be the need to develop corridor improvement programs for
key urban corridors such as H Street.
BERKELEY
2501 Nioth St., Sui" 200
""k,lay. CA 94710-25!5
www,'psys.'om
Phan" 510-B41-9190
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SACRAMENTO OENVER
Phon" 916-649-BOI0 Phon" 303-623-3557
Fa" 916-649-2070 Fa" 303-623-9049
23-3
Memorandum
Dan Forster
June 8, 2004
Page 2
.
The policy effort, ultimately reflected in the Growth Management Ordinance, will
involve creation of a new street classification "urban arterial", adding to the three
already existing in the Ordinance. The other policy will be selecting the "LOS" to
apply to the designated urban arterials, for example, the LOS could be set at "E", or
specific road segments exempted altogether from the standards.
Another example of a revised or reapplied standard is for community and neighborhood
parks. While the three acres per thousand population standard currently applied in
Eastern Chula Vista is impossible to achieve in Western Chula Vista due to the lack of
available park sites, a facility-based standard linked to a Western Chula Vista Parks
Master Plan could be included so that opportunities to improve and expand parks in
Western Chula Vista are pursued.
The Consultant will assist staff with the technical and policy aspects of the new
transportation and other thresholds for urban density areas.
UPDATED CITYWIDE THRESHOLD STANDARDS
The White Paper identified potential modifications to several threshold standards that
will be further explored, including:
Converting library and parks and fire standards to facility concurrency based
thresholds rather that a level of service as is currently applied. This change is
recommended since the facilities required to achieve the desired thresholds in each
of these cases have been identified in respective facility master plans; the change will
simplify administration of the thresholds.
Refining threshold standards for traffic, police, and fiscal analysis. These thresholds
would benefit from technical improvements that better reflect current conditions and
measurement methods.
Altering threshold standards not directly enforceable by the City. These thresholds
need a clearer statement of the City's limited ability to enforce any violation.
Stronger intergovernmental and regional efforts are encouraged.
The Consultant will assist staff with crafting the new threshold standards, including
meetings with department staff members, additional research, and drafting language.
The area requiring the greatest effort may involve the Police Department; Department
staff members are presently working on this matter and are expected to provide their
recommendations in the near future.
GMm<mO6-09-04.d"
2 =3 -tJ
Memorandum
Dan Forster
June 8,2004
Page 3
ENHANCED GROWTH CONTROLS
The White Paper described a set of options for imposing annual city-wide growth caps
on development in Chula Vista given concerns that the rate of growth, in certain
circumstances, make achieving individual thresholds difficult and affect overall quality
of life in the City. The City Council directed that no further research be conducted on
the matter. Given the thoughtful discussion on the matter it is proposed that policy
language be included in the General Plan Growth Management Element that specifies
and allows the City Council, subject to specific findings such as a forecasted threshold
failure, to impose a short term (Le. a period of one to three years) growth limitation or
metering similar to what was done when creating the 3 years "Permit Monitoring"
program. Under this proposal similar language would be included in the Growth
Management Ordinance.
Another possible approach for controlling growth, during periods of very rapid
development, would be to institute sequential map and permit processing. Sequential
processing helps to insures a standard level of quality.
The Consultant will assist staff in drafting the policy and ordinance language, including
delineating the necessary findings for taking such an actions.
INTERGOVERNMENTAL AND REGIONAL COOPERA nON
The White Paper described several areas where intergovernmental and regional
cooperation could be improved to enhance the quality of life in Chula Vista. While these
efforts lie beyond the purview of the Growth Management Ordinance, they were
endorsed by the City Council, especially the proposed effort to improve cooperation
with the school districts. While State statute restricts the ability of the City to condition
new development related to school capacity, cooperative efforts, such as those outlined
in the Chula Vista City/Schools Community Task Force Report (March 2003), have the
potential for improving schools and their performance in the City.
The Consultant will assist staff in exploring the potential "next steps" to implementing
Task Force recommendations and other proposal that may have more recently been
developed.
2.3-6
GM"'<mO6-09-iJ4.d"
CITY COUNCIL MEETING
AGENDA STATEMENT
ITEM:
..24-
MEETING DATE:
06/15/04
ITEM TITLE:
Ordinance Of The Chula Vista City Council Establishing a
Community Choice Aggregation Program in Accordance with California
Public Utilities Code Sections 218.3, 331.1, 366, 366.2, 381.1, 394, and
394.25, Allowing the City of Chula Vista, Acting as the Municipal Energy
Utility, to Aggregate the Electrical Load of Electricity Consumers within
the City.
SUBMITTED BY: Assistant City Manager~ ~
Director of Conservation E vironmental Services ~
REVIEWED BY: City Mana~ ~( '--?' (4/5ths Vote: Yes- No--1Ll
At the June 8, 2004 Council meeting the bJ,. Council adopted staff's recommendation to begin
to implement a phased approach to the Municipal Energy Utility (MEU) business models
recommended by the MEU Feasibility Study, which included Community Choice Aggregation.
On June 8, 2004, Council also directed staff to return with an ordinance for their review and
consideration that would declare the Chula Vista MEU a Community Choice Aggregator (CCA).
RECOMMENDATION: That Council adopt the ordinance establishing a Community Choice
Aggregation Program in accordance with California Public Utilities Code Sections 218.3, 331.1,
366, 366.2, 381.1, 394, and 394.25, allowing the City of Chula Vista, acting as the Municipal
Energy Utility, to aggregate the electrical load of electricity consumers within the City.
BOARDS/COMMISSIONS RECOMMENDATION:
Not applicable.
BACKGROUND: On June 5, 2001 Council passed Ordinance No. 2835 establishing the City's
status as a Municipal Utility. At the June 8, 2004 Council meeting the City Council directed
staff to:
Pursue a franchise agreement with SDG&E for existing electricity utility service within
the City and all existing and new natural gas service,
. Actively participate at CPUC in matters that may impact the City MEU Plans and
Ratepayer Advocacy Issues,
Prepare and circulate requests for proposals for Greenfield Development (GD) and CCA
service providers,
. Prepare and submit a CCA Implementation Plan to the California Public Utilities
Commission (CPUC),
. Prepare an ordinance declaring the City MEU a CCA,
. Appropriate $500,000 from the Available Fund Balance of the General Fund to the
Administration Department to support the development of a CCA Implementation Plan
and participate fully in the CCA rulemaking before the CPUC. and
. Direct Staff to Return to Council With a Staffing Plan to implement one or more
;;)Lf~i
Meeting Date: 6/15/04
Page: 2 of 4
municipal energy business models selected by Council.
Tonight's action by the City Council, acting as the Municipal Energy Utility, declares the City's
Municipal Energy Utility a CCA as described in the California Public Utilities Code §
366.2c.10.A, Chapter 838 of 2002, formerly AB117:
(10)(A) A city, county, or city and county that elects to implement a community choice
aggregation program within its jurisdiction pursuant to this chapter shall do so
by ordinance.
Over the past two years, staff has actively participated in workshops and proceedings before the
California Public Utilities Commission (CPUC) through cooperation with other cities, counties
and agencies, including the County of Los Angeles, San Francisco and the Local Government
Commission (representing 22 jurisdictions), to jointly promote "just and reasonable"
implementation rules and exit fees pertaining to CCA. At these workshops and hearings, the
City of Chula Vista has strongly stated to the PUG, as well as to representatives of SDG&E, that
the City is pursuing CCA, and reserves its right to implement CCA. Following the MEU's action
to declare itself a CCA, staff will notify the CPUC and SDG&E that the Chula Vista MEU is
officially beginning the process of preparing a CCA Implementation Plan for submittal to the
CPUC, and that the Chula Vista MEU is seeking the full cooperation of the CPUC and SDG&E,
the local "electrical corporation," as directed under Public Utilities Code section § 366.2.c:
(9) All electrical corporations shall cooperate fully with any community choice
aggregators that investigate, pursue, or implement community choice aggregation
programs. Cooperation shall include providing the entities with appropriate billing
and electrical load data, including, but not limited to, data detailing electricity needs
and patterns of usage, as determined by the commission, and in accordance with
procedures established by the commission.
DISCUSSION:
The Duncan/Navigant team, Peer Review consultants and Staff recommend using a phased
approach to implementing a Chula Vista Municipal Energy Utility to ensure that each phased
step can be evaluated, debated and understood before escalating the City's level of
commitment, and to provide Council with incremental decision points prior to making that
commitment. The Duncan/Navigant and Peer Review reports also indicate that this gradual,
step-by-step growth will provide the City with valuable experience in the MEU business before
fully committing to operating a full Municipal Energy Utility business.
The proposed CCA process is consistent with Navigant's recommendations. The proposed
action takes an important step to initiate the development of the CCA Implementation Plan, as
required by the Public Utilities Code. However, tonight's action is not irreversible:
0 Council will have another discretionary decision point when the completed Plan is
presented to the Council for their review and approval, following a public hearing.
0 Council will also have a go-no-go option when the CPUC "certifies" the Plan and
presents its "findings" to the City. Those findings must outline the final terms and
conditions of implementation and the full costs or "exit fees" that the CPUC has
determined.
0 Finally, Council will have a decision point prior to signing contracts for energy and
;Jtf;~
Meeting Date: 6/15/04
Page: 3 of 4
providing SDG&E with 30 days notice that Community Choice service will commence.
The MEU Report, the Peer Review and the Ratepayer Advocate Reviews clearly indicate that
Community Choice Aggregation is one of the municipal utility business models that will be very
financially beneficial over the eighteen-year study period. However, the reports identify
additional benefits that staff believes are equally important to the Council's decision regarding
the go-no-go decision for Community Choice Aggregation. The additional benefits to Chula
Vista from a phased MEU approach that begins with the implementation of Community Choice
Aggregation include better control of the City's energy future and the opportunity to implement
many if not all of the following objectives:
.
Establish a local Municipal Utility structure that's only focus is on service and delivering
value to the community, not profit to shareholders.
Establish a local Municipal Utility that is accountable to local ratepayers, not
shareholders, state and federal regulators.
Establish reliable electricity, and under certain circumstances, natural gas supply that
reduces or eliminates scheduled brown outs and maintains the highest level of customer
service.
Stabilize consumer rates.
Establish land use guidelines for power lines and utility boxes that put local quality of life
issues first.
Enhanced Control of Local Public Goods Funds to:
0 Ensure an environmental advantage for City residents and businesses,
0 Invest the $3,000,000 already collected from Chula Vista ratepayers each year to
produce real savings for current rate payers,
0 Establish better incentives for existing residents and businesses to invest in
conservation and clean generation options, and
0 Invest in a more environmentally sustainable energy future based on renewable
sources that do not use fossil fuels.
Invest in medium and long-term energy procurement and power generation strategies
that reflect the City's commitment to a sustainable environment and cleaner air including:
0 CO2 reduction,
0 The prevention of global warming, and
0 Particulate reduction.
Investment in energy procurement and generation, infrastructure and operational
services that maintain existing jobs and create new quality jobs for local residents.
Enable the utilization of the MEU as an economic development tool to retain and attract
businesses,
0 Establish better incentives that encourage developers to reduce costs through
increased investment in conservation, energy efficiency and clean generation.
Generate new city revenues at no increased cost to ratepayers.
0 Equitably invest new revenues generated from an MEU business throughout the
City in the form of enhanced existing services and/or new services.
Enhance Chula Vista's vision to continue as a vibrant community in the region and a
leader in environmental stewardship.
Consistent with the existing energy policy and previously articulated Council support for quality
jobs and the increased use of renewable energy, energy conservation and efficiency, the
recommended and proposed CCA/Greenfield MEU business model provides the Council with
the greatest opportunity to develop and incorporate economically viable and local renewable
resources in the City's energy portfolio.
;;. '1-.3
Meeting Date: 6/15/04
Page: 4 of 4
The action before Council tonight, declaring the City Municipal Energy Utility a Community
Choice Aggregator, is the next carefully studied and measured step in a phased process that
provides Chula Vista with the opportunity to playa role in its energy future.
Staff will return to Council with a staffing plan on July 13, 2004 that reflects City Council's
direction to begin a phased approach to the implementation of the Community Choice
Aggregation and Greenfield Development business models.
FISCAL IMPACTS:
The City Council's approval of the recommendation and adoption of the Ordinance before
Council will not impact the general fund. The estimated costs for developing and submitting the
CCA Implementation Plan are included in the budget appropriation previously adopted by
Council. The phased approach to implementation provides Council with a series of decision
points prior to committing to any further expenditures.
Mtm: cca-ord-cas-6-15-04b
;). 1.1 - 'f
ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING A
COMMUNITY CHOICE AGGREGATION PROGRAM IN
ACCORDANCE WITH CALIFORNIA PUBLIC UTILITIES CODE
SECTIONS 218.3, 331.1, 366, 366.2, 381.1, 394, AND
394.25,ALLOWING CHULA VISTA TO AGGREGATE THE
ELECTRICAL LOAD OF ELECTRICITY CONSUMERS WITHIN THE
CITY OF CHULA VISTA
WHEREAS, at Council's direction, staff began implementing the City's Energy
Strategy and Action Plan, adopted in May, 2001; and
WHEREAS, a significant component of the strategy required an analysis of the
costs, benefits and risks associated with forming and operating a municipal energy utility,
(MEU); and
WHEREAS, on September 24,2002, the Governor signed into law Chapter 838
which authorizes any California city, county, or city and county, whose governing board
so elects, to combine the electricity loads of its residents and businesses in a community-
wide electricity buyers' program known as Community Choice Aggregation; and
WHEREAS, at the May 19, 2004 MEU Workshop and Council Meeting, the City
Council listened to approximately five and one half hours of expert testimony and public
input regarding the potential development of a Chula Vista public utility; and
WHEREAS, at the June 8, 2004 workshop, the City Council directed staff to
return to the June 15,2004 City Council meeting with an ordinance declaring the Chula
Vista MEU (established on June 5, 2001, by Ordinance No. 2835) a Community Choice
Aggregator, and to further consider the MEU Feasibility Study Consultants'
recommendations to implement selected MEU business models; and
WHEREAS, as a Community Choice Aggregator, the City could have a
significant additional means of increasing the scale and cost-effectiveness of
conservation, energy efficiency and renewable energy in Chula Vista.
WHEREAS, the existing energy policy and previously articulated Council support
for quality jobs and the increased use of renewable energy, energy conservation and
efficiency, the recommended and proposed CCA MEU business model provides the
Council with an opportunity to develop and incorporate economically viable and local
renewable resources in the City's energy portfolio.
WHEREAS, Community Choice Aggregation provides a means of exercising
local control over electricity rates and future increases, resources, quality of service, and
designing local energy systems to protect against future blackouts.
d- 4-..5
WHEREAS, it is important that the City of Chula Vista act expeditiously to
implement a Community Choice Aggregation regime in order to properly engage the
CPUC in rulemaking related to Community Choice Aggregation; and
WHEREAS, under California Law (Public Utilities Code §366.2 and other
sections of Chapter 838 of2002, formerly ABI17), for Chula Vista to implement
Community Choice Aggregation so that it may find a new electric service provider for
the residents and businesses within its jurisdiction, the City Council must proceed via a
series of ordinances. The Public Utilities Code further provides the following:
A. The California Public Utilities Commission (CPUC) must establish rules by
which any entity can seek to provide electricity aggregation service, now
being undertaken in Rulemakings 03-10-003 and 01-08-028;
B. All electrical corporations must cooperate with entities investigating, pursuing
or implementing Community Choice Aggregation, and provide them with
billing and electrical load data, subject to rules established by CPUC;
C. A Community Choice Aggregator may apply to become the administrator for
cost-effective energy efficiency and conservation programs for its retail
electric customers;
D. A Community Choice Aggregator must develop an implementation Plan
detailing the process and consequences of aggregation, which must be adopted
by the Board of Supervisors at a duly noticed public hearing by ordinance;
E. Potential Community Choice Aggregation customers must be fully informed
of the program and be given ample opportunity to opt out pursuant to Section
366.2(c)(II) of the Public Utilities Code.
The City Council ofthe City of Chula Vista ordains as follows:
Section I. COMMUNITY CHOICE AGGREGATION IMPLEMENTATION PLAN
The City shall develop a Draft Implementation for a Community Choice Aggregation
(CCA) program for Chula Vista for consideration by the City Council consistent with
Section 366.2(c)(1I) of the Public Utilities Code, and other sections of Chapter 838 of
2002 - formerly AB117.
Section II: This ordinance shall take effect and be in full force on the thirtieth day from
and after its second reading and adoption.
Presented by
Approved as to form by
~~~~
Ann Moore
City Attorney
:)if-ftJ
CITY OF CHULA VISTA
MA VOR/COUNCIL
Melllo
To: Lottaine B=ett, Deputy City Cletk
From: Anne L Hattison, Constituent Services Manager
Date: 6/8/2004
Re:
Appointment to the Human Relations Commission
S dilla uk! lik . ~~t C .
Mayor tephen Pa wo e to appoint osca-Reese to the Human Relatlons
Commission. This is to fill the vacancy. of Mr. Joseph Süns, and the tenn expires June 30 2006.
Please place this on the June 15 2004 Council agenda for ratification. If you have any questions,
please contact me at x5812. Thank you for your assistance.
~ L, V(~/iL
Anne L Hattison
Constituent Services Manager
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