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HomeMy WebLinkAboutAgenda Packet 1999/05/25 '" declare IIndar 'è~~~ perjury thet , em May 25, 1999 employed by the City of Chula Vist!! in the Offi~e of the City Clerk and that I posted 6:00 p.m. this Agenda/Notice on the Bulletin Board at CALL TO ORDER the Public ~rv~ Building aAII T}~ DATED. r~ :1'7'SIGNED 8- .. I. ROLL CALL: CouncilmemDers Davis, Moot, Padilla, Salas, and Mayor Horton. 2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE 3. APPROVAL OF MINUTES of May II, 1999 and May 18, 1999 (Regular Meeting of the City Council) and May 18, 1999 (Joint Meeting of the Redevelopment Agency, City Council and the Housing Authority). 4. SPECIAL ORDERS OF THE DAY - None submitted. CONSENT CALENDAR (Items 5 through 14) The staf[ recommendations regarding the following items listed under the Consent Calendar will he enacted hy the Council hy one motion, without discussion, unless a Councilmemher, a memher (i[ the puhlic, or City staf[ requesls Ihallhe ilem he removedfor discussio/l, I[ you wish 10 ,Ipeak on one (if Ihese ilems, please fill oul a "Requesllo Speak"form (availahle inlhe lobby) and suhmil illo Ihe Cily Clerk prior 10 Ihe meeling Jlemspulledfrom Ihe Consenl Calendar will he discussed q[ler Aclionllems. lIems pulled hy Ihe lJ1/hlic will he Ihe.firsl items o[ husiness. 5. WRITTEN COMMUNICATIONS A. Letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on May 18, 1999, there were no actions taken which are required under the Brown Act to be reported. Staff recommendation: The letter be received and filed. B. Letter of resignation from the Human Relations Commission - Rafael 1. Aguilar. Staff recommendation: The resignation be accepted with regret and the City Clerk be directed to post immediately according to the Maddy Act in the Clerk's Office and the Public Library. 6.A ORDINANCE 2780-A, AMENDING CHAPTER 15.08 OF THE MUNICIPAL CODE ADOPTING THE CALlFORN1ABUILDlNG ST ANDARDS CODE, 1998 EDITION AND THE UNIFORM BUILDING CODE, 1997 EDITION (URGENCY) B. ORD1NANCE 2780-B, AMENDING CHAPTER 15.08 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA BUILDING ST ANDARDS CODE, 1998 EDITION AND THE UNIFORM BUILDING CODE, 1997 EDITION (FIRST READING) Agenda 2 May 25, 1999 C. ORDINANCE 278 I-A, ADOPTING A NEW CHAPTER 15.10 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA REFERENCED STANDARDS CODE, 1998 EDITION (URGENCY) D. ORDINANCE 2781-B, ADOPTING A NEW CHAPTER 15.10 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA REFERENCED STANDARDS CODE, 1998 EDITION (FIRST READING) E. ORDINANCE 2782-A, AMENDING CHAPTER 15.16 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA MECHANICAL CODE, 1998 EDITION AND THE UNIFORM MECHANICAL CODE, 1997 EDITION (URGENCY) F. ORDINANCE 2782-B, AMENDING CHAPTER 15.16 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA MECHANICAL CODE, 1998 EDITION AND UNIFORM MECHANICAL CODE, 1997 EDITION (FIRST READING) G. ORDINANCE 2783-A, AMENDING CHAPTER 15.18 OF THE MUNICIPAL CODE ADOPTING THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, 1997 EDITION (URGENCY) H. ORDINANCE 2783-B, AMENDING CHAPTER 15.18 OF THE MUNICIPAL CODE ADOPTING THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, 1997 EDITION (FIRST READING) L ORDINANCE 2784-A, AMENDING CHAPTER 15.20 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA HOUSING CODE, 1998 EDITION AND THE UNIFORM HOUSING CODE, 1997 EDITION (URGENCY) 1. ORDINANCE 2784-B, AMENDING CHAPTER 15.20 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA HOUSING CODE, 1998 EDITION AND THE UNIFORM HOUSING CODE, 1997 EDITION (FIRST READING) K. ORDINANCE 2785-A, AMENDING CHAPTER 15.24 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA ELECTRICAL CODE, 1998 EDITION AND THE NATIONAL ELECTRICAL CODE, 1996 EDITION (URGENCY) L: ORDINANCE 2785-B, AMENDING CHAPTER 15.24 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA ELECTRICAL CODE, 1998 EDITION AND THE NATIONAL ELECTRICAL CODE, 1996 EDITION (FIRST READING) M. ORDINANCE 2786-A, ADOPTING A NEW CHAPTER 15.26 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA ENERGY CODE, 1998 EDITION (URGENCY) N. ORDINANCE 2786-B, ADOPTING A NEW CHAPTER 15.26 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA ENERGY CODE, 1998 EDITION (FIRST READING) o ORDINANCE 2787-A, AMENDING CHAPTER 15.28 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA PLUMBING CODE, 1998 EDITION AND THE UNIFORM PLUMBING CODE, 1997 EDITION (URGENCY) Agenda 3 May 25, 1999 P ORDINANCE 2787-B, AMENDING CHAPTER 15.28 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA PLUMBING CODE, 1998 EDITION AND THE UNIFORM PLUMBING CODE, 1997 EDITION (FIRST READING) Q. ORDINANCE 2788-A, AMENDING CHAPTER 15.36 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA FIRE CODE, 1998 EDITION AND THE UNIFORM FIRE CODE, 1997 EDITION (URGENCY) R. ORDINANCE 2788-B, AMENDING CHAPTER 15.36 OF THE MUNICIPAL CODE ADOPTING THE CALIFORNIA FIRE CODE, 1998 EDITION AND THE UNIFORM FIRE CODE, 1997 EDITION (FIRST READING) S. ORDINANCE 2789-A, AMENDING CHAPTER 15.38 OF THE MUNlCIPAL CODE ADOPTING THE URBAN-WILDLAND INTERFACE CODE, 1997 EDITION (URGENCY) T. ORDINANCE 2789-B, AMENDING CHAPTER 15.38 OF THE MUNICIPAL CODE ADOPTING THE URBAN-WILDLAND INTERFACE CODE, 1997 EDITION (FIRST READING) Adoption of the various 1997 Editions, Uniform Codes and the various 1998 Editions, California Codes is a routine action undertaken by the Planning and Building Department every three years in response to newly published Codes. The adoption of these Codes is in conformance with Council Policy 500-04 as adopted by Resolution 5656 which endorses the establishment and maintenance of Uniform Building Regulations within the jurisdictions of the County of San Diego. Staff recommendation: Council adopt the urgency ordinances and place the remaining ordinances on first reading. (Director of Planning and Building) 7. ORDINANCE 2790, AMENDING V ARIOUS SECTIONS OF THE MUNICIPAL CODE RELATING TO TITLE DESIGNATIONS DUE TO DEPARTMENTAL REORGANIZATIONS (FIRST READING) In July, 1998, the Department of Planning and the Department of Building and Housing were reorganized. The reorganization' removed the titles of Planning Director and Director of Building and Housing and replaced it with Director of Planning and Building. As a result, several Municipal Code sections must be changed to reflect the title changes. Staff recommendation: Council place the ordinance on first reading. (Director of Planning and Building) 8. RESOLUTION 19470, AMENDING THE FISCAL YEAR 1998/99 INSURANCE BUDGET AND APPROPRIATING FUNDS THEREFOR (4/5TH'S VOTE REQUIRED) This action will appropriate funding for payment of previously authorized claim settlements and expenditures. Staff recommendation: Council adopt the resolution. (Risk Manager and City Attorney) --- --'.--'.-- .... Agenda 4 May 25, 1999 9,A RESOLUTION 19280, APPROVING AN AMENDMENT TO COUNCIL POLICY NUMBER 505-02 REGARDING THE USE OF EARLY LIENING PROCEDURE (CONTINUED FROM JANUARY 19,1999.) B. RESOLUTION 19281, APPROVING THE FORM OF THE SECOND AMENDED ACQUISITIONIFINANCING AGREEMENT FOR ASSESSMENT DISTRICT NUMBER 97-2 (OT A Y RANCH, VILLAGE ONE) C. RESOLUTION 19282, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED OBLIGATION IMPROVEMENT BONDS FOR ASSESSMENT DISTRICT NUMBER 97-2 (OT A Y RANCH VILLAGE ONE), APPROVING THE FORM OF BOND INDENTURE, BOND PURCHASE AGREEMENT AND OTHER DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH Assessment District 97-2 will provide public funding for the acquisition of public improvements within Otay Ranch, Village One. The district was formed under the Municipal Improvement Act of 1913. Current Council Policy Number 505-2 requires that a project be fully completed and accepted by the City prior to acquisition. The amended policy is incorporated in the proposed amendment to the Acquisition/Financing Agreement which establishes the procedure for acquiring the improvements from the developer. Staff recommendation: Council adopt the resolutions (Director of Public Works and Director of Finance) 10. RESOLUTION 19471, APPROVING AGREEMENTS WITH W1LLDAN ASSOCIATES FOR ACQUISITION SERVICES ASSOCIATED WITH COMMUNITY FACILITIES DISTRICT NUMBER 97-3 AND ASSESSMENT DISTRICT NUMBER 97-2, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS At the request of the developers, Council approved the formation of Community Facilities District Number 97-3 and Assessment District Number 97-2 to finance the acquisition of public infrastructure serving Otay Ranch SPA One properties. Council is now being asked to consider the approval of two agreements with Willdan Associates to perform auditing services associated with the acquisition of public improvements financed by said districts, Staff recommendation: Council adopt the resolution. (Director of Public Works) 11. RESOLUTION 19472, AWARDING A ONE-YEAR CONTRACT, WITH A TWO-YEAR EXTENSION AT CITY'S OPTION, TO SPECIAL DISTRICT FINANCING & ADMINISTRATION, LLC FOR PERFORMANCE OF SPECIAL DISTRICT ADMINISTRATIVE SERVICES FOR COMMUNITY FACILITIES DISTRICT, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT During the Fiscal Year 1998/1999, the City established six new Community Facilities Districts in the Otay Ranch and Sunbow developments for the construction of public facilities or for the maintenance of open space areas. The City requires the services of a consultant to perform Agenda 5 May 25, 1999 services necessary to administer the districts, including calculating charges to be levied on each parcel and delivering a magnetic tape with this information to the County prior to the August 10 deadline Staffrecommenda!Ìon: Council adopt the resolution. (Director of Public Works) 12. RESOLUTION 19473, APPROVING A THREE-YEAR AGREEMENT WITH THE SAN DIEGO UNIFIED PORT DISTRICT FOR TIDELAND MAINTENANCE SERVICES IN THE AREA OF BA YSIDE PARK, CHULA VISTA BA YFRONT P ARK, MARINA VIEW PARK AND ADJACENT MEDIANS OF SAN DIEGO UNIFIED PORT DISTRICT PROPERTY The City and San Diego Unified Port District staff have negotiated a new three-year maintenance agreement for Port District property at the Bayfront Park, Marina View Park, Bayside Park and landscaped medians on Tidelands Avenue between Sandpiper Way and West "I" Street. The Agreement amount is not to exceed $399,120 per fiscal year unless a written request and documentation is submitted to the Port District for approval. Staff recommendation: Council adopt the resolution. (Director of Public Works) 13A RESOLUTION 19474, APPROVING A DEFERRAL AGREEMENT WITH SHEA HOMES AND OT A Y PROJECT LLC CONCERNING THE DEVELOPMENT OF CERTAIN LOTS IN NEIGHBORHOODS R-7 AND R-I 0 OF OT A Y RANCH SP A ONE, VILLAGE ONE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION 19475, APPROVING FINAL MAPS OF TRACT NUMBER 96-04, OT A Y RANCH, VILLAGE ONE, NEIGHBORHOODS R-7 AND R-IO, ACCEPTING ON BEHALF OF THE CITY, GENERAL UTILITY AND ACCESS EASEMENTS, AND WALL EASEMENTS GRANTED ON SAID MAPS WITHIN SAID SUBDIVISIONS, ACKNOWLEDGING THE IRREVOCABLE OFFER OF DEDIC A TION OF FEE INTEREST FOR OPEN SPACE AND OTHER PUBLIC PURPOSES, APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MA YOR TO EXECUTE SAID AGREEMENT C RESOLUTION 19476, APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR THE FINAL "B" MAPS OF NEIGHBORHOODS R-7 AND R-I 0 IN VILLAGE ONE, SPA ONE OF THE OT A Y RANCH PROJECT The agreement provides that Shea Homes will defer construction of84 homes in R-7 and 71 homes in R-IO, in order to obtain final map approval for both neighborhoods at this time. The total number of non-deferred units is 99, which is within the threshold limits for SPA One set by the Olympic Parkway Agreement Staff recommendation: Council adopt the resolutions (Director of Public Works) -.-."". ---.....-'- Agenda 6 May 25, 1999 14. REPORT ON THE FISCAL STATUS AS OF THE END OF THE THIRD QUARTER OF FISCAL YEAR 1998/99 In accordance with Charter Section 504(t), the fiscal status report as of March 31, 1999, is now before Council. Staff recommendation: Council accept the report. (Director of Finance) ORAL COMMUNICA nONS ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 15. CITY MANAGER'S REPORTS A. Scheduling of meetings. B. Fiscal Year 1999/2000 Budget Overview. 16. MAYOR'S REPORTS 17. COUNCIL COMMENTS ADJOURNMENT to a Closed Session and thence to the Regular Meeting of June 8, 1999, at 6:00 p.m. in the Council Chambers. (The meeting of June 1, 1999 has been canceled.) ***An Adjourned Meeting of the Redevelopment Agency will be held immediately following the City Council Meeting*** _"___m..'_. -- - ------. May 19,1999 TO: Th. "oo".bl. M.y" ood City C'""''' ~ FROM: David D. Rowlands, Jr., City Manage~"cr '-;? SUBJECT: City Council Meeting of May 25, 1999 This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, May 25, 1999. Comments regarding the Written Communications are as follows: 5a. This is a letter from the City Attorney stating that to the best of his knowledge from observances of actions taken in Closed Session on May 18, 1999, there were no actions taken which are required under the Brown Act to be reported. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. 5b. IT IS RECOMMENDED THAT RAFAEL J. AGUILAR'S RESIGNATION FROM THE HUMAN RELATIONS COMMISSION + BE ACCEPTED WITH REGRET AND THE CITY CLERK'S OFFICE BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE CLERK'S OFFICE AND THE PUBLIC LIBRARY. DDR:dt ~-- --- ~ ~ ft.. ~:-: ~<~~ ~~~- CIW OF CHUIA VISTA OFFICE OF THE CITY A TIORNEY Date: May 19, 1999 To: The Honorable Mayor and City Council From: John M, Kaheny, city Attorneyælf7(r.,) Re: Report Regarding Actions Taken in Closed Session for the Meeting of 5/18/99 The City Council met in Closed Session on 5/18/99 to discuss: CONFERENCE WITH LEGAL COUNSEL REGARDING: . Existing litigation pursuant to Government Code Section 54956,9 (a) : Fritsch v, City of Chula vista CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54957,8: Property: Approximately 7 acres located on Bonita Road adjacent to the Chula vista Municipal Golf Course Negotiating City of Chula Vista (Chris Salomone) and Parties: Diamond Development Company Under Purchase price/lease rate and other terms and Negotiation: conditions for possible disposition of City- owned property, The City Attorney hereby reports to the best of his knowledge from observance of actions taken in the Closed Session in which the City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported. JMK: 19k H:\home\lorraine\lt\clossess.no M~/ 276 FOURTH AVENUE' CHULA VISTA· CALIFORNIA 91910 . (619) 691,5037 . FAX (619) 409-5823 '* PœI-C<:rvTøAeo:,dedP..,- _._."----~--_.__.__.__._..__. .---- F\Œ@Œn~O , I MAY 12, 1999 III MICf , 2 1(1(V) " !J! TO: THE CITY OF CHULA VISTA --; ;"lfJrIL OfT HONORABLE MAYOR AND CITY COUNCIL ·,VI(' It is with regret that I resign my position as a member of the Chula Vista Human Relations Commission effective immediately. Thank you for your confidence in letting me sit on the commission. It was an extraordinary experience. ~. ~) RAFAE J. AGUI AR I 330 ROOSEVELT STREET #10 CHULA VISTA, CA 91910 E29 :g -f-l -<-< ::XJ 00 ~ r'1 r--n ("") me-> :::0= - ¡T1 "':C= N < tnr- 0» -0 ¡T1 -no< ,þ, 0 -n- _V'> n~¡ - m:z;:,.. Q (J) WRITT·EN COMMUNICA TIO~ . /A 5/~S;'1J Cc: ~~ :1 .b1J / / . '.. ......_~".-._--- _m____________ ._---,----------~ ".-- -"~.,..-.~.--- - ---,--- COUNCIL AGENDA STATEMENT Item No.: ~ Meeting Date: 5/25199 ;. 78"(;1·,4 ITEM TITLE: A. Urgency Ordinance :tZ::;A Adopting the California Building Code, 1998 Edition and Uniform Building Code, 1997 Edition with Amendments B. Ordinanct ?~Á~ting the California Building Code, 1998 Edition and Uniform Building Code, 1997 Edition with Amendments C. Urgency Ordinance ~7q Ádtpting the California Referenced Standards Code, 1998 Edition .2.7fï-/f D. Ordinance --=ª Adopting the California Referenced Standards Code, 1998 Edition .2. 7Y:l ~"'l E. Urgency Ordinance ---1::, Adopting the California Mechanical Code, 1998 Edition and Uniform Mechanical Code, 1997 Edition with Amendments F. Ordinance .2 ?l,¿;æg the California Mechanical Code, 1998 Edition and Uniform Mechanical Code, 1997 Edition with Amendments .2 79":J·,4 G. Urgency Ordinance ---1::, Adopting the Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition with Amendments ,;. '} 8"3-ß H. Ordinance --=ª Adopting the Uniform Code for Ihe Abatement of Dangerous Buildings, 1997 Edition with Amendments I. Urgency Ordinance ':¡'1{1::d~ing the Uniform Housing Code, 1997 Edition with Amendments J. Ordinance .z~{~/pf¡ng the Uniform Housing Code, 1997 Edition with Amendments K. Urgency Ordinance :l. ~f¡fd-~ing the California Electrical Code, 1998 Edition and National Electrical Code, 1996 Edition with Amendments .278'..5·15 L. Ordinance --=ª Adopting the California Electrical Code, 1998 Edition and National Electrical Code, 1996 Edition with Amendments 1 ¿;, .. / Council Agenda Statement Item No.: Uniform Codes Meeting Date:5/25/99 ,2.?!l¿~4 M. Urgency Ordinance ~ Adopting the California Energy Code, 1998 Edition ,2. 73"'v-ß N. Ordinance ---=ª Adopting the California Energy Code, 1998 Edition O. Urgency Ordinance .2~f¡do1ting the California Plumbing Code, 1998 Edition and Uniform Plumbing Code, 1997 Edition with Amendments P. Ordinance .2~ITdo$ng the Adopting the California Plumbing Code, 1998 Edition and Uniform Plumbing Code, 1997 Edition with Amendments )'7ff~4 Q. Urgency Ordinance ~ Adopting the California Fire Code, 1998 Edition and Uniform Fire Code, 1997 Edition ).') :?l'~tJ R Ordinance ---=ª Adopting the California Fire Code, 1998 Edition and Uniform Fire Code, 1997 Edition S. Urgency Ordinance). 7~ÁdtPtin9 the Urban-Wildland Interface Code, 1997 Edition with Amendments T. .). 7 S--Z--O Ordinance ---=ª dopting the Urban-Wildland Interface Code, 1997 Edition with Amendments SUBMITTED BY: Director of Plan~ and Buildi &. Fire Chief ~t REVIEWED BY: City Manager~ ~ (4/5ths Vote: Yes _ No JU ".--4 Adoption of the various 1997 Editions, Uniform Codes and the various 1998 Editions, California Codes is a routine action undertaken by the Planning and Building Department every three years in response to newly published Codes. The adoption of these Codes is in conformance with City Council Policy 500-04 as adopted by Resolution 5656 which endorses the establishment and maintenance of Uniform Building Regulations within the jurisdictions of the County of San Diego. RECOMMENDATION: THAT THE CITY COUNCIL ADOPT THE URGENCY ORDINANCES OF THE VARIOUS 1997 EDITIONS, UNIFORM CODES AND THE VARIOUS 1998 EDITIONS, CALIFORNIA CODES AND PLACE THE OTHER ORDINANCES ON FIRST READING. 2 t -2 Council Agenda Statement Item No,: Uniform Codes Meeting Date:5/25/99 BOARD/COMMISSION RECOMMENDATION: The Board of Appeals and Advisors at their Monday, April 12, 1999 meeting unanimously approved the recommended adoption of the various 1997 Editions, Uniform Codes and the various 1998 Editions, California Codes. Members of the architectural, engineering and conslruction communily were invited for their applicable comments. No objections were received during the Public Hearing regarding the adoption of the codes. DISCUSSION: As mandated by the Building Standards Commission, State of California, each jurisdiction within the State shall adopt the various 1997 Editions, Uniform Codes by no later than July 1, 1999. They are: Califomia Building Code, 1998 Edition and Uniform Building Code, 1997 Edition with Amendments Califomia Referenced Standards Code, 1998 Edition California Mechanical Code, 1998 Edition and Uniform Mechanical Code, 1997 Edition with Amendments Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition with Amendments Uniform Housing Code, 1997 Edition with Amendments California Electrical Code, 1998 Edition and National Electrical Code, 1996 Edition with Amendments California Energy Code, 1998 Edition California Plumbing Code, 1998 Edition and Uniform Plumbing Code, 1997 Edition with Amendments Califomia Fire Code, 1998 Edition and Uniform Fire Code, 1997 Edition Urban-Wildland Interface Code, 1997 Edition with Amendments Jurisdictions within San Diego County have met collectively to discuss suggested modifications to the codes with members of the architectural and engineering community during monthly meetings of the San Diego Area Chapter of the International Conference of Building Officials. As such, this process recognizes and promotes code uniformity throughout the jurisdictions within the County creating a positive professional environment among all code users. This ordinance is considered to be an urgency ordinance because the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform Codes no later than July 1, 1999. Due to canceled City Council meeting on June 1, 1999, the second reading of the ordinance would not take place until June 8, 1999, and the ordinance would not become effective on July 8, 1999. Therefore it is recommended that Council adopt the ordinance as an urgency ordinance and that it become effective on July ¿3 3 Council Agenda Statemenl Item No.: Uniform Codes Meeting Date: 5/25/99 1, 1999. In order to avoid any possible challenges to the urgency ordinance, it is recommended that the Council also adopt the ordinance in the normal course. FISCAL IMPACT: None. There are no increases in fees proposed in this adoption. There will be some incidental costs to train staff on new code requirements. The cost for purchase of new code books was absorbed in the current year's budget. Attachments: A-1) California Building Code, 1998 Edition and Uniform Building Code, 1997 Edition with Amendments - Urgency A-2) California Building Code, 1998 Edition and Uniform Building Code, 1997 Edition with Amendments B-1) California Referenced Standards Code, 1998 Edition - Urgency B-2) California Referenced Standards Code, 1998 Edition C-1) Califomia Mechanical Code, 1998 Edition and Uniform Mechanical Code, 1997 Edition with Amendments - Urgency C-2) California Mechanical Code, 1998 Edition and Uniform Mechanical Code, 1997 Edition with Amendments 0-1) Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition with Amendments - Urgency 0-2) Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition with Amendments E-1) Uniform Housing Code, 1997 Edition with Amendments - Urgency E-2) Uniform Housing Code, 1997 Edition with Amendments F-1) California Electrical Code, 1998 Edition and National Electrical Code, 1996 Edition with Amendments - Urgency F-2) Califomia Electrical Code, 1998 Edition and National Electrical Code, 1996 Edition with Amendments G-1) California Energy Code, 1998 Edition - Urgency G-2) California Energy Code, 1998 Edition H-1) California Plumbing Code, 1998 Edition and Uniform Plumbing Code, 1997 Edition with Amendments - Urgency H-2) California Plumbing Code, 1998 Edition and Uniform Plumbing Code, 1997 Edition with Amendments 1-1) Califomia Fire Code, 1998 Edition and Uniform Fire Code, 1997 Edition - Urgency 1-2) California Fire Code, 1998 Edition and Uniform Fire Code, 1997 Edition J-1) Urban-Wildland Interface Code, 1997 Edition with Amendments - Urgency J-2) Urban-Wildland Interface Code, 1997 Edition with Amendments t-r 4 ~ -- --:.) - ORDINANCE NO. ;27ð"¿J-4 AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.08 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA BUILDING STANDARDS CODE, 1998 EDITION AND THE UNIFORM BUILDING CODE, 1997 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.08 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.08 BUILDING CODE Sections: 15.08.010 California Buildin~ Code. 1998 Edition and Uniform Building Code, 1994 1997 edition, adopted by reference. 15.08.020 General-Section 104.2.1 amended to designate building official. 15.08.030 Board of Appeals and Advisors-Section 105.1 is amended. Limitations of Authority- Section 105.2 is added. 15.08.040 Exempted Work-Section 106.2 is amended. 15.08.050 Section 107 is amended by adding subsection 107.8 exempting government entities from fee payments to reference the City's Master Fee Schedule, and to charge for fees not contained in the UBC. 15.08.060 Subsection 108.1.1 added to Section 108.1 to authorize compliance survey inspections. 15.08.070 Section 709.4.1 amended to add an exception to the requirement for parapets. 15.08.080 Paragraph 6 added to subsection 904.2.2 to reqnire installation of automatic fire- extinguishing system in buildings greater than certain height. 15.08.090 Section 1503 amended to provide for more restrictive roof coverings. 15.08.100 Subsections 1511.5 and 1511.6 added to Section 1511 to require equipment enclosures on roofs and removal of obsolete roof equipment. 16.98.119 J.ppeBdh¡ Tahle 29 l. ameRded 18 speeif) æiaimulH ftuæev øf puhlie restY88IH Iaeilities :fer moter 1"ekide fileliRg stati8RS Ð.REI mereaRtile aeeapaaeies witk fuel dispensiRg BfJeratioRs. 16.98.129 f4JpeRdix Table 29 }. ameaEled. f8 sfleeify miaimuIH Humber Be pHlJlie restrosIH faeilities {ay IRotor y:ekiele fueling stati8RS aDd mereaRtile BffHp8HeÏes ·,ritll fHel disp£RSiRg aperatiBRs required. at time af remodel, ø.lterRtiBR ay repair. 15.08.010 Uniform Building Code, 1994 Edition, adopted by reference. There is hereby adopted by reference the California Buildin~ Code, known as the California Code of Regulations, Title 24 part 2 and Uniform Building Code, ("UBC") -l994 1997 Edition, and Appendix Chapter 3, Division II; Appendix Chapter IS; Appendix Table A-29-A; Appendix Chapter 31, Division II and Division III of that certain document as copyrighted by the International Conference of Building Officials. Chapter II, Accessibility is hereby exempted. Said document is hereby adopted as the Building Code of the City ofChula Vista for regulating the erection, construction, enlargement, alteration, repair, moving, demolition, conversion, occupancy, use, height, and area of all buildings and structures in the City. Providing for the issuance of permits and collection of fees therefor and each and all such regulations, provisions, penalties, conditions and terms of the Uniform Building Code, -l994 1997 Edition, and Appendix Chapter 3, Division II; Appendix Chapter IS; Appendix Table A-29-A; Appendix Chapter 31, Division II and Division III are hereby referred &/1--/ I _._..__......-~-_._.- to, adopted, and made a part hereof as though fully set forth herein, excepting such portions as are hereinafter deleted, modified, or amended. 15,08.020 General-Section 104.2.1 amended to designate Assistant Director of Plannim! and Buildim! BøihliRg Direet8F as "building official". Section 104.2,1 of the UBC, as it applies in the City of Chula Vista, is hereby amended to read as follows: Section 104.2.1 General. The building official is hereby authorized and directed to enforce all the provisions of this code. For such pUlposes the building official shall have the powers of a law enforcement officer. The building official shall have the power to render interpretations of this code and to adopt and enforce rules and regulations supplemental to this code as may be deemed necessary in order to clarify the application of the provisions of this code. Such interpretations, rules and regulations shall be in confonnity with the intent and purpose of this code. The building official shall be the assistant director of olanning and buildin2: àireeter anmilàiÐ.g sad RSllSiHg. 15.08.030 Board of Appeals and Advisors-Section 105.1 amended to confer "suitability of alternate materials" jurisdiction on Board of Appeals. Limitations of Authority-Section 105.2 is added, Section 105,1 of the UBC, as it applies in the City of Chula Vista, is hereby amended to read as follows: Section 105.1 Board of Appeals and Advisors. To determine the suitability of alternate materials, methods of construction and to provide for reasonable interpretation of the provisions of this code, there shall be and is hereby created a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction. The àifestor sfB"ilàiBg aHd h.",iHg building official shall be an ex-officio member who shall not be entitled to vote and who shall act as Secretary to the Board. The Board of Appeals and Advisors shall be appointed by the Mayor and confirmed by the City Council. The Board shall render all decisions and fmdings in writing to the building official ¡¡westsr sf l"filàiBg IIB¡¡ h.tlsiHg with a duplicate copy to the appellant The decision of the Board is fmal. The Board of Appeals and Advisors shall recommend to the City Council such new legislation deemed necessary to govern construction in the City of Chula Vista. Section 105.2 Limitations of Authority. The board of appeals shall have no authority relative to interpretation of the administrative provisions of this code nor shall the board be empowered to waive requirements of the code. 15.08.040 Exempted Work-Section 106.2 is amended to delete exemptions for certain types of construction from the requirement to obtain a building permit. Standards of Quality- Section 1701.4 is added. Section 106.2 of the Uniform Building Code as it applies in Chula Vista shall read as follows: Section 106.2 EXEMPTED WORK. No person, firm, or corporation shall erect, construct, enlarge, alter, repair, move, improve, remove, convert, or demolish any building or structure in the city of Chula Vista or cause the same to be done without first obtaining a separate building pennit for each such building or structure from the building official except as follows: ¿, /9 r ..2. 2 A. Fences up to seventy-two inches and lÌee standing masonry walls up to forty-eight inches in height above the highest adjacent grade. B. Detached patio covers, not exceeding twelve feet in height, with a projected roof area not to exceed one-hundred forty-four square feet and at least six feet lÌom any building or structure on the same property, C. One-story detached accessory buildings, not exceeding twelve feet in height used as tool and storage sheds, playhouses and similar uses, provided the ".ajeetcà r""ffloor area does not exceed one-hundred forty-four square feet and are located so as to comply with the provisions of Chula Vista Municipal Code, Section 19.58.020. D. Oil derricks. E. Movable cases, counters, and partitions not over five feet, nine inches in height. F. Retaining walls which are not over three feet in height measured lÌom the top of the footing to the top of the wall, unless supporting a surcharge or impounding flammable liquids. G. Television and radio antelU1as less than thirty-five feet in height. H. Awnings projecting not more than fifty-four inches and attached to, and supported by, the exterior walls of buildings of Group R-3, Division 3 orU Occupancy. 1. Platforms, walks and driveways not more than thirty inches above grade and not over any basement or story below. J. Temporary motion picture, television and theater stage sets and scenery, K. Prefabricated swimming pools accessory to a Group R, Division 3 Occupancy in which the pool walls are entirely above the adjacent grade and if the capacity does not exceed five-thousand gallons. L. Fish ponds, reflective pools or other decorative water containers with a wet surface area of one-hundred square feet or less and a maximum depth of eighteen inches to the flood rim. M, Repairs which involve only the replacement of component parts of existing work with similar materials for the pmpose of maintenance, and which do not aggregate over $500.00 in valuation in any twelve- month period, and do not affect any electrical, plumbing or mechanical installations. Repairs exempt from permit requirements shall not include any addition, change, or modification in construction, exit facilities, or permanent fixtures or equipment. Specifically exempted lÌom pennit requirements without limit to valuation are: L Painting, papering, decorating and similar work. 2. Installation of floor covering. 3. Cabinet work. 4. Outside paving of R-3 and U Occupancies parking surfaces. (CCR Title 24 Disabled Access Required,) 5. Re-roofmg buildings of Group Rand U Occupancies ofless than five-hundred square feet or less than fifty percent of roof covering replacement. 3 ¿,~ -- J -....-..-.----.-.- This section shall not be construed to require separate building permits for dwelling and accessory buildings or structures on the same property which are described in the building pennit application, plot plan and other drawings. Exemption from the pennit requirements of this code shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of the City of Chula Vista, 15.08.050 Section 107 amended by adding subsection 107.8 Exceptions, waiving fees for government entities. Section 107,7 Exceptions. The United States Government, State of California, school districts, counties, cities and other public agencies shall not be required to pay any fees for filing an application for a building pennit pursuant to this code. Section 107.8 Retention of Plans. The retention of plans, specifications and pennits are for the life of the building. Therefore, the applicant shall be charged a fee to cover the actual cost of rnicrofilming such documents as specified in the master fee schedule. 15.08.060 Subsection 108.1.1 added to Section 108.1 to authorize compliance survey inspections. Subsection 108.1.1 is hereby added to Section 108.1 of the Unifonn Building Code, as it applies in Chula Vista, and said subsection (h) shall read as follows: Section 108.1.1 Compliance Survey Inspection. Upon receipt of a written request for a compliance survey from the owner and payment of the fee specified in the master fee schedule, the building official may inspect an existing structure to ascertain its compliance with the provisions of this code and other applicable laws and ordinances, and report [mdings in writing to the owner. 15.08.070 Subsection 709.4.1 amended to add an exception to the requirement for parapets. EXCEPTION 6 is hereby added to subsection 6 of Subsection 709.4.1 of the Unifonn Building Code, as it applies in Chula Vista, which EXCEPTION 6 shall read as follows: Exception 6. Conversion of existing Group R occupancies to offices. 15.08.080 Subsection 904.2.1 amended to require installation of automatic fire-extinguishing system In buildings greater tban certain heigbt. Subsection 904.2.1 of the Unifonn Building Code is hereby amended, as it applies in Chula Vista, by the addition of the following: In every building regardless of occupancy, group or type of construction, when such building is more than forty feet or four stories or more in height. 15.08.090 Section 1503 amended to provide for more restrictive roof coverings, Section 1503 of the Unifonn Building Code as it applied in Chula Vista is amended as follows: 4 tf>/9 ~r Section 1503. The roof covering on any structure regulated by this code shall be as specified in Table No. 15-A and as classified in Section 1504. Wood shingles and wood shakes shall have a minimum Class "C" fIre-resistive rating. 15.08.100 Subsections 1511.5 and 1511.6 added to Section 1511 to require equipment enclosures on roofs and removal of obsolete roof equipment. Subsection 151 L5 is hereby added to Section 1511 of the Uniform Building Code, as it applies in Chula Vista, which subsection 1511.5 shall read as follows: Section 1511.5 Equipment Enclosure, Operating equipment, including piping and ducts located on the roof of a building, shall be shielded from view from public thoroughfares, private and public parking lots. Equipment enclosures shall not be constructed so as to trap flanunable or combustible vapors. Exception: Solar collectors. Does not include structural supporting members. 15.9S.119 l4'l'eRdbJ: Table 29 fa ameBded to speeify miRilHuHl Rumher sf puldie restroom faeilities fer HIatal ¡:ekiele fueliBg staÐ.ORS and mere8Rtile aeeøpaaeies ',yitk fuel dispensiRg ofleratioRs. TaI3le þltimber I. 29 A Þ.4inÎ1RlHR PIH1RBmg finR1i"8S l.de Feemote NIilllBer 7. :r.iater . skiele æeling statiSRG, meæsi. e sf æereamile eee1:1paneies ";:ith fuel dispeRsing 8penHieRG, shall prø':iàe p1:1èlie F8Sk8SH15 a. aileàle t8 eastsmsrs àl:i.f..ng Reæ:s sf lHisiHess epsfRtieas. 1~ minim"ttHi sf eRe per sen, 8ElHi¡3peà ., iäl eRe ..ater sleset 8flà eRe la-":atsry fler r8strseffi shall 8e }3ra-:iàeà. ResÊfeem faeilities shall ea"fHl31y -::ith disabled aseeSB staeàaràs. IS.OS.l20 AppeRElix Tahle 29 J. afHeBEled ta speeify fHiRifHafH BaRthel' Bf pahlie f'estf'BBfH faeilities fer fHatar vekiele faeliBg statiaB5 BREI RtereBRtile aeeapBBeies with fuel ElispeBsiBg aperBtiaBS f'eE:J.aired at tifHe ae remadel, altef'a1iBB aF repair. 1'$le Þ~WRèer A 2Ç' }~ Þ.fiBiœ\U'H PltiFHèÏftg PÈlæres }~dà Fee1:f1ete ÞTLiffiBer 8. }.ay singular BRsite sr stRietliFa! rem.ade!, alteraâsR ar repair in 6neess sf $29,999 prejeet ¡:altiaâeB, ar a esl1ee1:Ï.e .altiettieB ef ÏIRprevemeæ:s -.vitJIiB eBe year Hem. dINe ef isStianee sf a }3efR'1it fer Feæeàel, altsFBtisR a£ re}3air t8 an enistæg matar -;smele fasling s1atiaB af an emisting æefeanâle eee~ane) .~;ith fuel dispeRsing B}36FaåsBB, shall eaffi}3ly -;;ith pFay¡isieBS eeBtaæeà æ this CHQI3ter far Be-;; eaBskHetiaa. SECTION 11. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Building Standards Code, 1998 Edition and the Uniform Building Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. 5 t~:5 SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the Uniform Building Code no later than July 1, 1999 The enactment of this ordinance by July 1, 1999 will ensure compliance with State mandates, SECTION IV. EFFECTIVE DATE. Pursuant to the provisions of Charter Section 311(d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affmnative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are, Presented by Approved as to form by ~ ~ Brad Remp, C.B.O Assistant Director of PIa . g and BuildinglBuilding Official 6 ¿/J/? · - - ORDINANCE NO. ..2. 7~Þ.-{] AN ORDINANCE OF TIŒ CITY OF CHULA VISTA AMENDING CHAPTER 15.08 OF TIŒ CHULA VISTA MUNIClPAL CODE ADOPTING TIŒ CALIFORNIA BUILDING STANDARDS CODE, 1998 EDmON AND TIŒ UNIFORM BUILDING CODE, 1997 EDmON TIŒ CITY COUNCIL OF TIŒ CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15,08 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.08 BUILDING CODE Sections: 15.08.010 California Buildinp Codt"_ 1998 Edition and Uniform Building Code, 1994 l221 edition, adopted by reference. 15.08.020 General-Section 104.2.1 amended to designate building official 15.08.030 Board of Appeals and Advisors-Section 105.1 is amended. Limitations of Authority- Section 105.2 is added. 15.08.040 Exempted Work-Section 106.2 is amended. 15.08.050 Section 107 is amended by adding subsection 107.8 exempting government entities from fee payments to reference the City's Master Fee Schedule, and to charge for fees not contained in the UBC. 15.08.060 Subsection 108.1.1 added to Section 108.1 to authorize compliance survey inspections. 15.08.070 Section 709.4.1 amended to add an exception to the requirement for parapets. 15.08.080 Paragraph 6 added to suhsection 904.2.2 to require installation of automatic fire- extinguishing system in buildings greater than certain height. 15.08.090 Section 1503 amended to provide for more restrictive roof coverings. 15.08.100 Suhsections 1511.5 and 1511.6 added to Section 1511 to require equipment enclosures on roofs and removal of ohsolete roof equipment. IS.08,110 f.ppeDdix TalJle 29 f. &!BeDded to specify mioi.....m Dumber of public restreom facilities far motor ....hiele fHeliDg statioBs IIBd m.rellBtil. o....PllBeies with fHeI dispeøsiag 8j1eFftti8Bs. IS.08.nO f.ppeBdÌJt TalJle 29 .'1. &!BeDded ta speeif3' mioi.....m ember af publie rest. Dam faeilities fOF metoF i:eh:iele faeliBg staReRs IIBd meFe8Btile eeeapOBt!ies with fael dispeD!lÌBg aperatioBs re'lHiA!d at time of remodel, alteratiOR or repaiF. 15.08.010 Uniform Building Code, 1994 Edition, adopted by ref.rence. There is hereby adopted by reference the ('"lifemia Buildine: Code known as the ('"lifonña Code of Retmlations Title 24 Dart 2 and Unifonn Building Code, ("UBC") -l994 ~ Edition, and Appendix Chapter 3, Division II; Appendix Chapter 15; Appendix Table A-29-A:, Appendix Chapter 31, Division II and Division III of that certain document as copyrighted by the International Conference of Building Officials. Chapter 11, Accessibility is hereby exempted Said document is hereby adopted as the Building Code of the City of Chula Vista for regulating the erection, construction, enlargement, alteration, repair, moving, demolition, conversion, occupancy, use, height, and area of all buildings and structures in the City, Providing for the issuance of pennits and collection of fees therefor and each and all such regulations, provisions, penalties, conditions and tenns of the Unifonn Building Code, -l994 1997 Edition, and Appendix Chapter 3, Division II; Appendix Chapter 15; Appendix Table A-29-A; Appendix Chapter 31, Division IT and Division III are hereby referred ;J:--5? ¿ß-// to, adopted, and made a part hereof as though fuJJy set forth herein, excepting such portions as are hereinafter deleted, modified, or amended 15.08.020 General-Section 104.2.1 amended to designate A~~ia:ant DirP.ctor of Planninp" and Bnildinp Buildiag »ired8F as "building official". Section 104.2,1 of the UBC. as it applies in the City of Chula VIsta, is hereby amended to read as follows: Section 104.2.1 General, The building official is hereby authorized and directed to enforce all the provisions of this code. For such purposes the building official shall have the powers of a law enforcement officer. The building official shall have the power to render inteIpretations of this code and to adopt and enforce rules and regulations supplemental to this code as may be deemed necessary in order to clarify the application of the provisions of this code. Such interpretations, rules and regulations shall be in confonnity with the intent and purpose of this code, The building official shall be the assistant director of n1anninl! and buildinl! !!Heeler ofOOüàiftg aad hBÐ5iÐg. 15.08.030 Board of Appeals and Advisors-Section 105.1 amended to confer" suitability of alternate materials" jurisdiction on Board of Appeals. Limitations of Anthority-Section 105.2 is added. Section 105,1 of the UBC, as it applies in the City of Chula VIsta, is hereby amended to read as follows: Section 105.1 Board of Appeals and Advisors. To determine the suitability of alternate materials, methods of construction and to provide for reasonable interpretation of the provisions of this code, there shall be and is hereby created a BœnI of Appeals and Advisors consisting of seven members who are qualified by experience and trnining to pass upon matters pertaining to building construction. The àireetar of builàiftg ani! IIoosiftg buildinl! official shall be an ex-{)fficio member who shall not be entitled to vote and who shall act as Secretary to the Board TIle Board of Appeals and Advisors sha1l be appointed by the Mayor and confirmed by the City Council. The Board shall render all decisions and findings in writing to the buildinl! official directer ef ¡...¡¡ding ani! heesiag with a duplicate copy to the appellant The decision of the BœnI is fina1, The Board of Appeals and Advisors shall recommend to the City Council such new legislation deemed necessary to govern construction in the City of Chula VIsta, Section 105.2 Limitations of Authority. The board of appeals shall have no authority relative to interpretation of the administrative provisions of this code nor shall the board be empowered to waive requirements of the code, 15.08.040 Exempted Worl<-Section 106.2 is amended to delete exemptions for certain types of construction from the requirement to obtain a building permit. Standards of Qnality- Section 1701.4 is added. Section 106.2 of the Uniform Building Code as it applies in Chula VISta shall read as follows: Section 106.2 EXEMPIED WORK. No person, linn, or corporation shall erect, construct, enlarge, alter, repair, move, improve, remove, convert, or demolish any building or structure in the city of Chula Vista or cause the same to be done without first obtaining a separate building pennit for each such building or structure from the building official except as follows; ~ ¿1l-;2. A, Fences up to seventy-two inches and free standing masonry walls up to forty-eight inches in height above the highest adjacent grade. B. Detached patio covers, not exceeding twelve feet in height, with a projected roof area not to exceed one-hundred forty-four square feet and at least six feet ftom any building or structure on the same property. C. One-story detached accessory buildings, not exceeding twelve feet in height used as tool and storage sheds, playhouses and simiIar uses, provided the projected roof area does not exceed one-hundred fourry-four square feet and are located so as to comply with the provisions of Chula Vista Municipal Code, Section 19.58.020, D. Oil derricks, E, Movable cases, counters, and partitions not over five feet, nine inches in height. F. Retaining walls which are not over three feet in height measured ftom the top of the footing to the top of the wall, unless supporting a surcharge or impounding flammable liquids, G, Television and radio antennas less than thirty-five feet in height H. Awnings projecting not more than fifty-four inches and attached to, and supported by, the exterior walls of buildings of Group R-3, Division 3 or U Occupancy. 1. Platfonns, walks and driveways not more than thirty inches above grade and not over any basement or story below, J. Temporary motion picture, television and theater stage sets and scenery, K. Prefabricated swimming pools accessory to a Group R, Division 3 Occupancy in which the pool walls are entirely above the adjacent grade and if the capacity does not exceed five-thousand gallons, L. Fish ponds, reflective pools or other decorative water containers with a wet swface area of one-hundred square feet or less and a maximum depth of eighteen inches to the flood rim. M. Repairs which involve only the replacement of component parts of existing work with simiIar materials for the pwpose of maintenance, and which do not aggregate OVer $500.00 in valuation in any twelve- month period, and do not affect any electrical, plumbing or mechanical installations. Repairs exempt ftom permit requirements sha1l not include any addition, change, or modification in construction, exit facilities, or permanent fixtures or equipment Specifically exempted ftom pennit requirements without limit to valuation are: 1. Painting, papering, decorating and similar work 2. Installation of floor covering. 3, Cabinet work 4, Outside paving of R-3 and U Occupancies parking surfaces. (CCR Title 24 Disabled Access Required. ) 5. Re-roofmg buildings of Group R and U Occupancies of less than five-1umdred square feet or less than fifty percent of roof covering replacement. ~ '-8 -J 1bis section sbalI not be construed to require separate building penuits for dwelling and accessory buildings or structures on the same property wruch are described in the building pennit application, plot plan and other drawings, Exemption from the pernùt requirements of this code shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of the City of Chula Vista. 15.08.050 Section 107 amended by adding subsection 107.8 Exceptions, waiving fees for government entities. Section 107.7 Exceptions, The Uuited States Goverrunent., State of California, school districts, counties, cities and other public agencies sbalI not be required to pay any fees for :filing an application for a building penuit pursuant to this code, Section 107,8 Retention ofPIans, The retention ofpIans, specifications and permits are for the life of the building, Therefore, the applicant sbalI be charged a fee to cover the actual cost of microfilming such documents as specified in the master fee schedule. 15.08.060 Subsection 108.1.1 added to Section 108.1 to authorize compliance survey inspections. Subsection 108. L 1 is hereby added to Section 108.1 of the Unifonn Building Code, as it applies in Chula Vista, and said subsection (h) sbalI read as follows: Section 108. Ll Compliance Survey Inspection Upon receipt of a written request for a compliance survey from the OMler and payment of the fee specified in the master fee schedule, the building official may inspect an existing stntcture to ascertain its compliance with the provisions of this code and other applicable laws and ordinances, and report findings in writing to the OMler. 15.08.070 Subsection 709.4.1 amended to add an exception to the requirement for parapets. EXCEPTION 6 is hereby added to subsection 6 of Subsection 709.4,1 of the Uniform Building Code, as it applies in Chula Vista, which EXCEPTION 6 shall read as follows; Exception 6, Conversion of existing Group R occupancies to offices, 15.08.080 Subsection 904.2.1 amended to require installation of automatic fire-extinguishing system in buildings greater than certain height Subsection 904.2,1 of the Uniform Building Code is hereby amended, as it applies in Chula Vista, by the addition of the following: In every building regardless of occupancy, group or type of construction, when such building is more than forty feet or four stories or more in height 15.08.090 Section 1503 amended to provide for more restrictive roof coverings. Section 1503 of the Uniform Building Code as it applied in Chula Vista is amended as follows: þJì- ¿'ß~r Section 1503. The roof covering on any structure regulated by this code shall be as specified in Table No. 15-A and as classified in Section 1504. Wood shingles and wood shakes shall have a minimum Class "C" fire-resistive rating. 15.08.100 Subsections 1511.5 and 1511.6 added to Section 1511 to require equipment enclosures on roofs and removal of obsolete roof equipment. Subsection 1511.5 is hereby added to Section 1511 of the Unifonn Building Code, as it applies in Chula Vista, which subsection 151 L5 shall read as follows: Section 151 L5 Equipment Enclosure, Operating equipment, including piping and ducts located on the roof of a building, shall be shielded ftom view ftom public thorough1àres, private and public parl<ing lots. Equipment enclosures shall not be constructed so as to trap flanunab1e or combustible vapors, Exception: Solar collectors, Does not include structural supporting members, IS.08.110 !.pp..dH: Tallie 29 !. _..lied to speeif" miDiIBHIB n.....ller of pHillie reslFeolB fneilities for lRotar velüele fueliøg statioBs and meFeaBtile aeeapaøeies 'WÌtII fuel dispeøsiog apeFtltioB&. Table NHrnber A 29 .\ Mj,úmøœ. PlwRbiBg FiJæureG ¡'odd Fa8lBete NHlRber 7, Meter '¡elUGle fueliBg staliens, iaelH5Ï\<e af meroantile eeõ\l lÐBeÏes '\\~th fuel EfupeesiÐg opetlltions, shall pf!! .-ide pHblie _ooms avaiJable to euslOIBe5 dør'.ng hOlHs efbH5ÌBoss epemtieHS. !. HlÌBirnum ef eae per Ge,,, e¡¡wpped ·::ith eRe -.vater eleset 8ftà eRe Ia-;ate¡:y per restFeem ~\._11 be lu:w:iàeel R~SÊfeam faeüities shaH 6e~ly ,-.4th ~~"""bleè. assess sænàarås. IS.08.nO !",peøm Tallie 29 f. _eødcd to speeÏfy miDiIBHIB _lIer af pHillie reslFOOIB faeilities for motor vehiele {Belial; stati8B9 ell mereautile oeeapaøeies witIt fuel dispensing aperatioBs FellUired at ÛlBe 9f relB8del, alter.tieR BF repair. Table Number ¿A~ 29 .A. :Þ.tiÐimam PtimtèiBg Hutures Add FootBete Number ß. !.IFf siagular oDSite aT stmetural :remadel, akemtiaø aT repair ÎB eneess Bf S29,QQO prejeet 9;abs1:iea, aF a eeReeœ:e ·¡aluatisa ef irnpfe'lelBeats wiIIIia oae year frelB date of issuaooe af 0 pemUt for _ode!, alterntion er F8 IIIÏr to DB e<isliag meter ·¡eBisle ftH!l:ing statiaB aT an æåsâ&g æefSBBt:ile 8eeupaaay ·;tith fuel åispeesiÐg epemtiem, shall 681BfJ1y .,,'itk preyisÎ.9BS e8Ræineå ÎR this Clæpter fer ReW eenstrueâen. SECTION II, FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Building Standards Code, 1998 Edition and the Unifonn Building Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. $ ..At" ?O'-f SECTION Ill. EFFECTIVE DATE. TIùs ordinance will take effect and be in force on July 1, 1999, Presented by Approved as to form by Robert Leiter Director of Planning an -6'» k8 - t _-0·"____". ORDINANCE NO. ;¿??/---/l AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA, ADOPTING A NEW CHAPTER 15.10 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA REFERENCED STANDARDS CODE, 1998 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That a new Chapter 15.10 of the Chula Vista Municipal Code is hereby added to read: Chapter 15.10 REFERENCED STANDARDS CODE Sections: 15.10,010 California Referenced Standards Code, 1998 Edition, adopted by reference. 15.10.020 Subsection 12.1.105.1 of Section 12.1.105 amended to Designate Board of Appeals and Advisors as Board of Appeals. 15.10.010 California Referenced Standards Code, 1998 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the California Referenced Standards Code, know as California Code of Regulations Title 24, Part 12, 1998 Edition as copyrighted by the International Conference of Building Officials. Said document is hereby adopted as the California Referenced Standards Code of the City of Chula Vista, California for the purpose of providing minimum standards to safeguard life or limb, health, property and public welfare by regulating and controlling the design, constrnction, quality of materials, use and occupancy, location and maintenance of all buildings and strnctures within this jurisdiction and certain equipment specifically regulated herein. 15.10.020 Subsection 12.1.105.1 of Section 12.1.105 amended to Designate Board of Appeals and Advisors as the Board of Appeals. Subsection 12.1.105.1 of Section 12.1.105 of the California Referenced Standards Code, 1998 Edition, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors. Section 12.1.105.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the building official or fire chief relative to the application and interpretations of this code, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy. The assistant director of planning and building and the fire marshal shall be ex- officio members who shall not be entitled to vote. The assistant director of planning and building shall act as secretary to the Board, The Board of Appeals and Advisors shall be appointed by the mayor and confirmed by the city council. The Board shall render all decisions and fmdings in writing to the assistant director ofJ'lanning and building with a duplicate copy to the appellant. Appeals to the Board shall be processed in accordance with the provisions contained in Chapter 5 of this code or in accordance with such procedures as may be prescribed by the City Attorney of the City of Chula Vista. The decision of the Board is fmal. The Board of Appeals and Advisors shall recommend to the city ~C-/ .tr council such new legislation deemed necessary to govern construction, use and occupancy of structures, in the City of Chula Vista. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declaxes that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Referenced Standaxds Code, 1998 Edition which axe noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency axe as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Unifonn codes, including the California Referenced Standards Code no later than July I, 1999 The enactment of this ordinance by July 1, 1999 will ensure compliance with State mandates. SECTION N. EFFECTIVE DATE. Pursuant to the provisions of Charter Section 3 11 (d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affumative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to fonn by '~~r~L, Robert Leiter Director of Planning and Budding ~ ~C-~ ORDINANCE NO. ;;. ?Y/~ß AN ORDINANCE OF THE CITY OF CHULA VISTA., ADOPTING A NEW CHAPTER 15.10 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA REFERENCED STANDARDS CODE, 1998 EDITION THE CITY COUNCIL OF THE CITY OF.CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That a new Chapter 15.10 of the Chula Vista Municipal Code is hereby added to read: Chapter 15.10 REFERENCED STANDARDS CODE Sections: 15.10.010 California Referenced Standards Code, 1998 Edition, adopted by reference. 15.10.020 Subsection 12.1.105.1 of Section 12.1.105 amended to Designate Board of Appeals and Advisors as Board of Appeals. 15.10.010 California Referenced Staudards Code, 1998 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the California Referenced Standards Code, know as California Code of Regulations Title 24, Part 12, 1998 Edition as copyrighted by the International Conference of Building Officials. Said document is hereby adopted as the California Referenced Standards Code of the City of Chula Vista, California for the purpose of providing minimum standards to safeguard life or limb, health, property and public welfare by regulating and controlling the design, construction, quality of materials, use and occupancy, location and maintenance of all buildings and structures within this jurisdiction and certain equipment specifically regulated herein. 15.10.020 Subsection 12.1.105.1 of Section 12.1.105 amended to Designate Board of Appeals and Advisors as the Board of Appeals. Subsection 12.1.105.1 of Section 12.1.105 of the California Referenced Standards Code, 1998 Edition, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors. Section 12.1.105.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the building official or fire chief relative to the application and interpretations of this code, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy, The assistant director of planning and building and the fire marshal shall be ex- officio members who shall not be entitled to vote. The assistant director of planning and building shall act as secretary to the Board. The Board of Appeals and Advisors shall be appointed by the mayor and confirmed by the city council. The Board shall render all decisions and findings in writing to the assistant director o(planning and building with a duplicate copy to the appellant. Appeals to the Board shall be processed in accordance with the provisions contained in Chapter 5 of this code or in accordance with such procedures as may be prescribed by the City Attorney of the City of Chula Vista. The decision of the Board is final. The Board of Appeals and Advisors shall recommend to the city fE-I council such new legislation deemed necessary to govern construction, use and occupancy of structures, in the City of Chula Vista. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Referenced Standards Code, 1998 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. EFFECTIVE DATE. This ordinance will take effect and be in force on Jilly 1, 1999. Presented by Approved as to form by .A-'f'" ~j)~..< .. - ORDINANCE NO. :< 70',1-4 AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.16 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA MECHANICAL CODE, 1998 EDITION AND THE UNIFORM MECHANICAL CODE, 1997 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.16 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.16 MECHANICAL CODE AND REGULATIONS Sections: 15,16,01 0 California Mechanical Code. 1998 Edition and Uniform Mechanical Code, !99! 1997 Edition, adopted by reference. 15.16,020 Section 108.1 amended to designate building official. 15.16.040 Section 115 amended to specify local fee structure. 15.16.010 California Mechanical Code. 1998 Edition and Uniform Mechanical Code, WI)4 1997 Edition, adopted by reference. There is hereby adopted by reference, that certain document known and designated as the California Mechanical Code, 1998 Edition . known as the California Code of Rerulations, Title 24 Dart 4, and Uniform Mechanical Code, +994 1997 Edition and Appendix A, Chapter 13 of Appendix B, And Appendix C thereof as copyrighted by the International Conference of Building Officials ("UMC"). Said document is hereby adopted as the Mechanical Code of the City, providing for and regulating the complete installation and maintenance of heating, ventilation, cooling and refrigeration systems, and providing for the issuance of permits therefore, and each and all such regulations, provisions, penalties, conditions and terms of the California Mechanical Code 1998 Edition and Uniform Mechanical Code, WI)4 1997 Edition and Appendix A, Cllal'tor 13 of "^4'l"eHdiJl B and Appendix C thereto are hereby referred to, adopted and made a part hereof as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended. 15.16.020 Section 108.1 amended to designate building official. Section 108.1 of the UMC as it applies in Chula Vista shall read as follows: Section 108.1 General. The building official is hereby authorized and directed to enforce all the provisions of this code. For such purposes the building official shall have the powers of a law enforcement officer. The building official shall have the power to render interpretations of this code and to adopt and enforce rules and regulations supplemental to this code as may be deemed necessary in order to clarily the application of the provisions of this code. Such interpretations, rules and regulations shall be in conformity with the intent and purpose of this code, The building official, herein referenced, shall be the assistant director ofDlanninQ and buildin12 èireeter afstiilèing and RBRSing. 15.16.030 Section 110.1 amended to confer "suitability of alternate materials" jurisdiction of Board of Appeals. ;r 15£--/ Section 110.1 of the UMC as it applies in Chula Vista shall read as follows: Section 11 0.1 Board of Appeals and Advisors. To determine the suitability of alternate materials, methods of construction and to provide for reasonable interpretation of the provisions of this code, there shall be and is hereby created a board of appeals and advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to mechanical design, construction and maintenance and the public health aspects of mechanical systems and who are not employees of the jurisdiction. The building official æreeter sf 1niilàæg aaà heHSIDg shall be an ex-officio member who shall not be entitled to vote and who shall act as secretary to the board, The board shall be appointed by the mayor and contìrmed by the city council. The board shall render all decisions and fmdings in writing to the building official àirecter ef ¡",¡¡ding and kausmg with a duplicate copy to the appellant. The decision of the board is fmal. 15.16.040 Subsection 115.1 amended to specify local fee structure. Subsection 115.1 of Section 115 of the UMC as it applies in Chula Vista shall read as follows: Fees. Subsection 115.1 General. Fees shall be assessed in accordance with the master fee schedule of the city of Chula Vista. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Mechanical Code, 1998 Edition and the Uniform Mechanical Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare, The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the Uniform Mechanical Code no later than July I, 1999 The enactment of this ordinance by July I, 1999 will ensure compliance with State mandates. SECTION IV. EFFECTNE DATE, Pursuant to the provisions of Charter Section 311(d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affirmative votes of the City Council as an urgency measure. The regular ordinances wi1l also be included as they presently are. Presented by Approved as to form by ~+,¿z£¿. ~~~ Director of Planning and Building City Attorney )fY ¿.£ -;2. g and BuildinglBuilding Official ¿£-J % · - - ORDINANCE NO. :< 7Y:;"'8 AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15,16 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA MECHANICAL CODE, 1998 EDmON AND THE UNIFORM MECHANICAL CODE, 1997 EDmON TIIE CITY COUNCIL OF TIIE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That Chapter 15,16 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.16 MECHANICAL CODE AND REGULATIONS Sections: 15.16.010 California M...,h.ni~al Codp_ 1998 Edition and Unüonn Mechanical Code, t99}, 1m Edition, adopted by reference. 15.16.020 Section 108.1 amended to designate building official 15.16.040 Section 115 amended to specñy local fee structure. 15.16.010 California M...,h.ni~.1 Codp_ 1998 Edition and Unüonn Mechanical Code, t994 1m Edition. adopted by reference. There is hereby adopted by reference, that certain document known and designated as the r"lifornia Mechanic:a1 Code 1998 Edition known as the (,~lifomia Code ofReø'nl~tions. Title 24 nart 4 and Uniform Mechanical Code, -W94l221 Edition and Appendix A, Chapter 13 of Appendix B, And Appendix C thereof as copyrighted by the International Conference of Building Officials ("UMC"), Said document is hereby adopted as the Mechanical Code of the City, providing for and regulating the complete installation and maintenance of heating, ventilation, cooling and refrigeration systems, and providing for the issuance of pennits therefore, and each and all such regulations, provisions, penalties, conditions and tenns of the r,,'ifornia Mechanical Code. 1998 Edition and Unifonn Mechanical Code, -W94 1997 Edition and Appendix A, CiIapter 13 ef i'4Jpenåi¡¡ Ii and Appendix C thereto are hereby refened to, adopted and made a part hereof as though fully set forth herein, excepting such po11ions as are hereinafter deleted, modified or amended. 15.16.020 Section 108.1 amended to designate building official Section 108.1 of the UMC as it applies in Chula Vista shall read as follows: Section 108.1 General The building official is hereby authorized and directed to enforce all the provisions of this code, For such pwposes the building official shall have the powers of a law enforcement officer, The building official shall have the power to render interpretations of this code and to adopt and enforce roles and regulations supplemental to this code as may be deemed necessary in order to clarifY the application of the provisions of this code, Such inteIpretations, roles and regulations sha1l be in conformity with the intent and pwpose of this code, The building official, herein referenced, shall be the assistant director of nlannin~ and buildin2 ~etar ef13uilàiDg anà lieusiRg. 15.16.030 Section 110.1 amended to confer "suitability of alternate materials" jurisdiction of Board of Appeals. .A'S tf-; Section 110.1 of the UMC as it applies in Chula Vista shall read as follows: Section 110.1 Board of Appeals and Advisors. To detennine the suitability of alternate materials, methods of constIUction and to provide for reasonable interpretation of the provisions of this code, there shall be and is hereby created a board of appeals and advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to mechanical design, constIUction and maintenance and the public health aspects of mechanical systems and who are not employees of the jurisdiction. The buildin~ official Elirester sf lmilàiÐg ami hSllsing shall be an ex-{)fficio member who shall not be entitled to vote and who shall act as secretary to the board The board shall be appointed by the mayor and confinned by the city coWlcil, The board shall render all decisions and findings in Miling to the buildin~ official Elireeter sf bui!åHlg and heHSing with a duplicate copy to the appellant The decision of the board is final, 15.16.040 Subsection 115.1 amended to specify local fee structure. Subsection 115,1 of Section 115 of the UMC as it applies in Chu1a Vista shall read as follows: Fees. Subsection 115,1 General, Fees shall be assessed in accordance with the master fee schedule of the city of Chula Vista SECTION II, FINDINGS AND DECLARATION The City COWlcil of the City of Chula Vista specifica1ly and expressly finds and declares that the nature and uniqueness of the climate, tenain, and location does necessitate and demand specific amendments to the CalifomiaMechanical Code, 1998 Edition and the Unifonn Mechanical Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION ill. EFFECTIVE DATE. This ordinance will take effect and be in force on July I, 1999, Presented by Approved as to fonn by Robert Leiter fdþ~~ Director of Planning an City Attorney K t¡::,.;< ORDINANCE NO. c:< 7 ð"J/1 AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.18 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS, 1997 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.18 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.18 ABATEMENT OF DANGEROUS BUILDINGS CODE Sections: 15.18.010 Uniform Code for the Abatement of Dangerous Buildings, ~ 1997 Edition, adopted by reference. 15.18.020 Subsection (a) of Section 201.1 amended to Designate Assistant Director of Plannin~ and Buildin~ Direetor ofBllihliHg 8Hd HOlIsiHg as "Building Official". 15.18,030 Subsection (a) of Section 205.1 amended to Designate Board of Appeals and Advisors as Board of Appeals, 15.18.010 Uniform Code for the Abatement of Dangerous Buildings, ~ 1997 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the Unifonn Code for the Abatement of Dangerous Buildings, W94- 1997 Edition as copyrighted by the International Conference of Building Officials. Said document is hereby adopted as the Dangerous Buildings Code of the City of Chula Vista, California providing for a just, equitable and practicable method, to be cumulative with and in addition to any other remedy provided by the Building code, Housing Code or otherwise available by law, whereby buildings or structures which !Tom any cause endanger the life limb, health, morals, property, safety or welfare of the general public or their occupants may be required to be repaired, vacated or demolished and the regulations, provisions, penalties, conditions and tenns of said Dangerous Building Code, ~ 1997 Edition, are hereby referred to, adopted, and made a part hereof, as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended, 15.18.020 Subsection (a) of Section 201.1 amended to Designate Assistant Director of Plannin~ and Buildin~ Direetar of BllildiHg 8Hd lIollsiHg as "Building Official". Section 201.1 of the Unifonn Code for the Abatement of Dangerous Buildings, as it applies in Chula Vista, shall read as follows: Section 201.1 Administration. The building official is hereby authorized and directed to enforce all the provisions of this code. The building official shall have the power to render interpretations of this code and to adopt and enforce rules and supplemental regulations in order to clarify the application of its provisions. Such interpretations, rules and regulations shall be in conformity with the intent and purpose of this code. y£tG -! The building official shall be the assistant director of Dlannin~ and buildin~ èifeetor sf Imilàing and aeusing. 15.18.030 Subsection (a) of Section 205.1 amended to Designate Board of Appeals and Advisors as the Board of Appeals. Subsection (a) of Section 205.1 of the Uniform Code for the Abatement of Dangerous Buildings, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors. Section 205.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the building official relative to the application and interpretations of this code, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy. The assistant director of nlannim! and buildinl! àÎfeeteI sf Btiilàæg aHa. ft6tiSæg shall be an ex-officio member who shall not be entitled to vote and who shall act as secretary to the Board. The Board of Appeals and Advisors shall be appointed by the mayor and confIrmed by the city council. The Board shall render all decisions and fmdings in writing to the assistant director of olannine and buildine èifeetor sfB,'¡ldiHg B1Ià Re~oæg with a duplicate copy to the appellant. Appeals to the Board shall be processed in accordance with the provisions contained in Chapter 5 of this code or in accordance with such procedures as may be prescribed by the City Attorney of the City of Chula Vista. The decision of the Board is fmal. The Board of Appeals and Advisors shall recommeod to the city council such new legislation deemed necessary to govern construction, use and occupancy of structures, in the City of Chula Vista. SECTION 11. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECT! ON Ill. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the Uniform Code for the Abatement of Dangerous Buildings no later than July I, 1999 The enactment of this ordinance by July I, 1999 will ensure compliance with State mandates. SECTION IV. EFFECTNE DATE. Pursuant to the provisions of Charter Section 311(d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affIrmative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to form by % ¿G ~,{ --....--..--.-... hA---/~r ~~.? Robert Leiter , Director of Planning and Bm ding ~~ Brad Remp, C.B.O Assistant Director of anning and Building/Building Official tG-Y )k" ORDINANCE NO. d. ?%';J'(J AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15,18 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE UNIFORM CODE FOR THE ABA 1EMENT OF DANGEROUS BUILDINGS, 1997 EDmON THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That Chapter 15,18 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.18 ABATEMENT OF DANGEROUS BUILDINGS CODE Sections: 15.18.010 Uniform Code for the Abatement of Dangerous Buildings, ±994 1997 Edition, adopted by reference. 15,18.020 Subsection (a) of Section 201.1 amended to Designate A..iotant Director of Plannin.. and Buildin.. DireetOF of JluildÎBg aød Housiag as "Building Official". 15.18.030 Subsection (a) of Section 205.1 amended to Designate Board of Appeals and Advisors as Board of Appeals. 15.18.010 Uniform Code for the Abatement of Dangerous Buildings, W94 1221 Edition, adopted by reference. There is hereby adopted by reference that certain docmnent known and designated as the Uniform Code for the Abatement of Dangerous Buildings, ~ l221 Edition as copyrighted by the International Conference of Building Officials. Said document is hereby adopted as the Dangerous Buildings Code of the City of Chula Vista, California providing for a just, equitable and pmcticable method, to be cumulative with and in addition to any other remedy provided by the Building code, Housing Code or otherwise available by law, whereby buildings or structures which from any cause endanger the life limb, health, morals, property, safety or welfare of the general public or their occupants may be required to be repaired, vacated or demolished and the regulations, provisions, penalties, conditions and tenns of said Dangerous Building Code, -W94 l221 Edition, are hereby referred to, adopted, and made a part hereof, as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended 15.18.020 Subsection (a) of Section 201.1 amended to Designate A..iotant Director of Plannin.. and Buildin.. DireetoF ofJluildiBg aød H9IIsiøg as "Building Official". Section 201.1 of the Uniform Code for the Abatement of Dangerous Buildings, as it applies in Chula Vista, shall read as follows: Section 20 Ll AdministratiOlt The building official is hereby authorized and directed to enforce all the provisions of this code. The building official shall have the power to render interpretations of this code and to adopt and enforce rules and supplemental regulations in order to clarify the application of its provisions. Such interpretations, rules and regulations shall be in confonnity with the intent and purpose of this code. ø ¿JI .; J The building official shaI1 be the assistant director of olannin2 and buildin2 àiæator of builllHtg aDd haesiBg, 15.18.030 Subsection (a) of Section 205.1 amended to Designate Board of Appeals and Advisors as tbe Board of Appeals. Subsection (a) of Section 205,1 of the Unifonn Code for the Abatement of Dangerous Buildings, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors, Section 205,1 GeneraL in order to hear and decide appeals of orders, decisions or determinations made by the building official relative to the application and inteIpretations of this code, there is hereby establisbed a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaitùng to building construction, use and occupancy, The assistant director of 01annin2 and buildin2 åifcelor of buildiBg aDd BCII§ÎBg shaI1 be an ex-officio member who shaI1 not be entitled to vote and who shall act as secretary to the Board. The Board of Appeals and Advisors shaI1 be appointed by the mayor and confirmed by the ci1y council, The Board sbal1 render all decisions and findings in writing to the assistant director of olannin2 and buildinl! àÌfeatBr Bf building 8IIå ilellSÎng with a duplicate copy to the appellant Appeals to the Board shaI1 be processed in accordance with the provisions contained in Chapter 5 of this code or in accordance with such procedures as may be prescribed by the Ci1y Attorney of the Ci1y of Chula Vista. The decision of the Board is finaL The Board of Appeals and Advisors shaI1 recommend to the ci1y council such new 1egis1ation deemed necessary to govern construction, use and occupancy of structures, in the Ci1y of Chula Vista. SECTION 11 FINDINGS AND DECLARATION The Ci1y Council of the Ci1y of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the Unifonn Code for the Abatement of Dangerous Buildings, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance, SECTIONIIL EFFECTIVE DATE. This ordinance will take effect and be in force on July 1, 1999, Presented by Approved as to fonn by Robert Leiter Director ofP1anning and Buil g and BuildingIBuilding Official ~ ¿)I--;l. .. - ORDINANCE NO. 02. ? ff'l-4 AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.20 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA HOUSING CODE, 1998 EDITION AND THE UNIFORM HOUSING CODE, 1997 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.20 of the Chula Vista Municipal Code is hereby amended to read as follows: CHAPTER 15.20 HOUSING CODES Sections: 15.20.010 California Housine Code, 1998 Edition and Uniform Housing Code, ~ 1997 Edition, adopted by reference. 15,20.020 Section 201.1 amended to Designate Assistant Director of Plannine and Buildine Direttor af Building IlDd II8HsiRg as "Building Official". 15.20.030 Section 203.1 amended to Designate Board of Appeals as "housing advisory and appeals hoard", 15.20.040 Section 304 added to Require Annual Housing Permit. 15.20.050 Section 305 added to Require Housing Permit Fees to he Set by City's Master Fee Schedule. 15.20.060 Section 306 added to Require Suspension or Revocation of Annual Housing Permit Where Operation is Non-Conforming. 15,20.010 California Housine Code. 1998 Edition and Uniform Housing Code, ~ 1997 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the California Housin" Code, 1998 Edition and Uniform Housing Code, ~ 1997 Edition as copyriglited by the International Conference of Building Officials. Said document is liereby adopted as the Housing Code of the City of Chula Vista, California providing for the issuance of liousing permits and providing the minimum requirements for the protection of life, limb, health, property, safety and welfare of the general public and the owners and occupants of residential buildings in the City of Chula Vista, and the regulations, provisions, penalties, conditions and terms of said California Housin" Code. 1998 Edition and Uniform Housing Code, ~ 1997 Edition, are liereby referred to, adopted, and made a part liereof, as thougli fully set forth lierein, excepting such portions as are liereinafter deleted, modified or amended. 15.20.020 Sectiou 201.1 ameuded to Designate Assistant Director of Plannine and Buildine Direetor of BHihliRg aall HOHsiag as "Building Official". Section 201.1 of the Uniform Housing Code, as it applies in Chula Vista, sliall read as follows: Section 20 l.l Authority. The building official is liereby authorized and directed to enforce all the provisions of this code. For sucli purpose, the building official sliall liave the powers of a law enforcement officer. ~ ~p~/ The building official shall have the power to render interpretations of this code and to adopt and enforce rules and regulations supplemental to this code as may be deemed necessary in order to clarify the application of the provision of this code. Such interpretations, rules and regulations shall be in conformity with the intent and purpose of this code. The building official shall be the assistant director ofnlanning and building direetBr eflmildiflg and hBUSiflg. 15.20.030 Section 203.1 amended to Designate Board of Appeals and Advisors as "housing advisory and appeals board". Section 203,1 of the Uniform Housing Code, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors, Section 203.1 General. In order to provide for reasonable interpretation of the provisions of this code, to mitigate specific provisions of the code which create practical difficulties in their enforcement and to hear appeals provided for hereunder, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy of residential structures. The assistant director of olalUling and building dirBctBr Bf ¡,.,ilàiflg ""d hBRSing shall be an ex-officio member who shall not be entitled to vote and who shall act as Secretary to the Board. The Board of Appeals and Advisors shall be appointed by the Mayor and confmned by the City Council. The Board shall render all decisions and fmdings in writing to the assistant director of olanning and building direetar Bf ".¡¡ding oed helloiBg with a duplicate copy to the appellant. Appeals to the Board shall be processed in accordance with the provisions contained in Section 120 I of this code or in accordance with such procedures as may be prescribed by the City Attorney of the City of Cliula Vista, The decision of the Board is fmaL The Board of Appeals and Advisors shall recommend to the City Council such new legislation deemed necessary to govern construction, use and occupancy of residential structures, in the City of Chula Vista. 15.20.040 Section 304 added to require Annual Housing Permit. Section 304, and the title precedent thereto, is added to the Uniform Housing Code, as it applies in Chula Vista, which Section shall read as follows: AlUlual Housing Permit. Section 304,1 It shall be UlÙawful for any person, fmn, partnership, or corporation, either for himself or itself, or for any other person, flITI1, partnership, or corporation to own or operate an apartment house, lodging house or hotel without first obtaining a housing permit therefor. Section 304.2 The Annual Housing Permit provided for in this code shall be due and payable to the City of Chula Vista on the frrst day of January of each year in advance. The housing permit fee shall be paid concurrently with the business license fee, Section 304.3 If any person, fmn, partnership or corporation commences the operation of an apartment house or hotel during the calendar year, the housing permit shall be prorated on a quarterly prorata basis for the calendar year. Section 304.4 A permit to operate and maintain an apartment house or hotel is not transferable. ~ 6 f-:L 15.20.050 Section 305 added to require Housing Permit Fees to be Set by City's Master Fee Schedule. Section 305, and the title precedent thereto, is added to the Uniform Housing Code, as it applies in Chula Vista, which Section shall read as follows: Housing Permit Fees - Apartment Houses, Lodging Houses, Hotels and Motels, Section 305,1 The fee for a Housing Permit required by Section 304 of this ordinance shall be as presently designated, or as it may hereafter be amended as set forth in the Master Fee Schedule of the City of Chula Vista. For the purpose of this section, a lIunitn shall mean each apartment in an apartment house, each sleeping room in a hotel, motel, and lodging house, and each apartment and each hotel, motel sleeping room in a building containing both apartments and hotel/motel sleeping rooms. Separate apartment house building and separate hotel/motel building, or combination thereof, located upon a single parcel ofland or contiguous parcels ofland, under the same ownership, shall be treated as one apartment house, or hotel for the purpose of computing the fee prescribed by this section. Section 305.2 Penalty for Delinquent Payment. If the housing permit is not paid on or before the thirtieth (30th) day of the month following the date when it became due, then a penalty in an amount equal to twenty-five percent (25%) of the permit fee due and payable shall be added thereto, and no such permit shall be issued until such penalty has been paid. Section 305.3 The assistant director of planning and building àifcetor sf builàiHg anà hSRSing shall cause to be made such inspections, at such intervals, as shall be deemed necessary to insure compliance with the provisions of this code. 15.20.060 Section 306 added to reqnire Suspension or Revocation of Annual Housing Permit Where Operation is Non-Conforming. Section 306, and the title precedent thereto, is added to the Uniform Housing Code, as it applies in Chula Vista, which Section shall read as follows: Suspension and Revocation of Housing Permit. Section 306 Whenever it is found that any apartment house, lodging house, hotel or motel is not being conducted in conformity with this code, the annual housing permit to operate shall be subject to revocation or suspension by the building official. SECTION II. FINDINGS AND DECLARA nON The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Housing Code, 1998 Edition and the Uniform Housing Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. ~ ~f"'3 .^..- SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the Uniform Housing Code no later than July 1, 1999 The enactment of this ordinance by July 1, 1999 will ensure compliance with State mandates. SECTION IV. EFFECTIVE DATE. Pursuant to the provisions of Charter Section 311(d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July 1, 1999 if passed by at least four (4) afflIll1Stive votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to form by k Robert Leiter Director of Planning . g and BuildinglBuilding Official ~ ~f-'I I .. - ORDINANCE NO. .2 ??,J/,¿] AN ORDINANCE OF TIŒ CITY OF CHULA VISTA AMENDING CHAPTER 15,20 OF TIŒ CHULA VISTA MUNICIPAL CODE ADOPTING TIŒ CALIFORNIA HOUSING CODE, 1998 EDmON AND THE UNIFORM HOUSING CODE, 1997 EDmaN THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION L That Chapter 15.20 of the Chula Vista Municipal Code is hereby amended to read as follows: CHAPTER 15.20 HOUSING CODES Sections: 15.20.010 California Rm..in.. Codr_ 1998 Edition and Uniform Housing Code, t994 1221 Edition, adopted by reference. 15.20.020 Section 201.1 amended to Designate ÂIIl4¡Îdant Dirf"t"tnr of Planninu and Buildinu DÍFe£tOF efBBildiag: aø.d R9t:lsiag as "Building Official". 15.20.030 Section 203.1 amended to Designate Board of Appeals as "housing advisory and appeals board". 15.20.040 Section 304 added to Require Annual Housing Permit. 15.20.050 Section 305 added to Require Housing Permit Fees to be Set by City's Master Fee Schedule. 15.20.060 Section 306 added to Require Suspension or Revocation of Annual Housing Permit Where Operation is Non-Conforming. 15.20.010 California ROII.in.. Code. 1998 Edition and Uniform Housing Code, t994 1997 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the (',,¡¡fornia Housinl! ('me 1998 Edition and Unifonn Housing Code, ~ J.22Z Edition as copyrighted by the International Conference of Building Officials, Said document is hereby adopted as the Housing Code of the City of Cbula VISta, California providing for the issuance of housing pennits and providing the minimum requirements for the protection oflife, limb, health, property, safety and welfare of the general public and the owners and occupants of residential buildings in the aty of Chula Vista, and the regulations, provisions, penalties, conditions and tenus of said (',,¡¡fornia Housinl! Code 1998 Edition and Unifonn Housing Code, ~ 1221 Edition, are hereby referred to, adopted, and made a part hereof, as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended. 15.20.020 Section 201.1 amended to Designate A,..iotant Di.....,tor of Plannin.. and BuiJdin.. Director of Buildiøg ed Beu!IÍBg as "Building Official". Section 201.1 of the Unifonn Housing Code, as it applies in Chula Vista, shall read as follows: Section 20Ll Authority, The building official is hereby authorized and directed to enforce all the provisions of this code. For such purpose, the building official shall have the powers of a law enforcement officer, )1 ¡,f-/ u_...._...._._.... The building official shall have the power to render inteIpretations of this code and to adopt and enforce rules and regulations supplemental to this code as may be deemed necessary in order to c1ariJy the application of the provision of this code. Such interpretations, rules and regulations shall be in confonuity with the intent and pwpose of this code, The building official shall be the assistant director of nlarmin2: and huildim!: direeter ef1nHleIiBg and heusiBg. 15.20.030 Section 203.1 amended to Designate Board of Appeals and Advisors as "housing advisory and appeals board". Section 203.1 of the Unifonu Housing Code, and the title precedent thereto, as it applies in Chu1a Vista, is hereby amended to read as follows: Board of Appeals and Advisors, Section 203,1 Genernt In order to provide for reasonable interpretation of the provisions of this code, to mitigate specific provisions of the code which create prnctical diffictùties in their enforcement and to hear appeals provided for hereunder, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy of residential structures, The assistant director of olannin!! and buildin!! åire6ler ef In>ilàiBg BBEllieusing shall be an ex-officio member who shall not be entitled to vote and who shall act as Secretary to the Board The Board of Appeals and Advisors shall be appointed by the Mayor and confirmed by the City Council. The Board shall render all decisions and findings in writing to the assistant director of olannin!! and buildin!! åireetor ef InwàiBg end OOllSiBg with a duplicate copy to the appellant Appeals to the Board shall be processed in accordance with the provisions contained in Section 1201 of this code or in accordance with such procedures as may be prescribed by the City Attorney of the City of Chu1a Vista, The decision of the Board is finaL The Board of Appeals and Advisors shall recommend to the City Council such new legislation deemed necessary to govern construction, use and occupancy of residential structures, in the City of Chula Vista 15.20.040 Section 304 added to require Annual Housing Permit. Section 304, and the title precedent thereto, is added to the Uniform Housing Code, as it applies in Chula Vista, which Section shall read as follows: Annual Housing Pennit Section 304.1 It shall be unlawful for any person, firm, partnership, or corporation, either for himself or itself, or for any other person, firm, partnership. or corporation to own or operate an apartment house, lodging house or hotel without first obtaining a housing penlÚt therefor, Section 304,2 The Annual Housing Pennit provided for in this code shall be clue and payable to the City of Chu1a Vista on the first day of January of each year in advance, The housing penlÚt fee shall be paid concmrently with the business license fee, Section 304.3 If any person, firm, partnership or corporntion commences the operntion of an apartment house or hotel during the calendar year, the housing penuit shall be prornted on a quarterly prorata basis for the calendar year, Section 304.4 A penuit to operate and maintain an apartment house or hotel is not ttansferable, ~ , f-.2. 15.20.050 Section 305 added to require Housing Permit Fees to be Set by City's Master Fee Schedule. Section 305, and the title precedent thereto, is added to the Uniform Housing Code, as it applies in Chula Vista, which Section shall read as follows: Housing Pennit Fees - Apartment Houses, Lodging Houses, Hotels and Motels. Section 305.1 The fee for a Housing Pennit required by Section 304 of this ordinance shall be as presently designated, or as it may hereafter be amended as set forth in the Master Fee Schedule of the City of Clru1a Vista. For the purpose of this section, a "unit" shall mean each apartment in an apartment house, each sleeping room in a hotel, motel, and lodging house, and each apartment and each hotel, motel sleeping room in a building containing both apartments and hotel/motel sleeping rooms. Separate apartment house building and separate hotellmote1 building, or combination thereof, located upon a single parcel of land or contiguous parcels of land, under the same ownership, shall be treated as one apartment house, or hotel for the purpose of computing the fee prescribed by this sectiOIl Section 305.2 Penalty for Delinquent Payment If the housing permit is not paid on or before the thirtieth (30th) day of the month following the date when it became due, then a penalty in an amount equal to twenty-five percent (25%) of the permit fee due and payable shall be added thereto, and no such permit shall be issued until such penalty has been paid Section 305.3 The assistant director of Dlannin~ and buildin~ Eliœelor of builæ..g and heuGiBg shall cause to be made such inspections, at such intervals, as shall be deemed necessary to insure compliance with the provisions of this code, 15.20.060 Section 306 added to require Suspension or Revocation of Annual Housing Permit Where Operation is Non-Conforming. Section 306, and the title precedent thereto, is added to the Uniform Housing Code, as it applies in Clru1a Vista, which Section shall read as follows: Suspension and Revocation of Housing Pennit Section 306 Whenever it is found that any apartment house, lodging house, hotel or motel is not being conducted in confonnity with this code, the annna1 housing pennit to operate shall be subject to revocation or suspension by the building official, SECTION II, FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Housing Code, 1998 Edition and the Uniform Housing Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance, ~ ¿ ;)"-;1 SECTION III EFFECITVE DATE, This ordinance will take effect and be in force on July I, 1999. Presented by Approved as to fonn by ~ ¿,f-tf -- -......-....------.- ORDINANCE NO. 02 7!f5/9 AN URGENCY ORDINANCE OF TIlE CITY OF CHULA VISTA AMENDING CHAPTER 15.24 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING TIlE CALIFORNIA ELECTRICAL CODE, 1998 EDITION AND TIlE NATIONAL ELECTRICAL CODE, 1996 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.24 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.24 ELECTRICAL CODE AND REGULATIONS Sections: 15.24.010 California Electrical Code. 1998 Edition and National Electrical Code-l993 1996 Edition and Uniform Administrative Code Provisions for the National Electrical Code, ~ 1996 Edition, adopted by reference. 15.24.015 Advisory and Appeals Board. 15,24.020 Enforcement Authority - Powers and Duties of the Buildin~ Official I>'.eeto. .f Huilding aad IIsHsiRg 15.24.025 Section 304(a) of the Uniform Administrative Code Provisions for the National Electrical Code, Permit Fees Amended to Reference the Master Fee Schedule. 15.24.030 Section 304(b) of the Uniform Administrative Code Provisions for the National Electrical Code, Plan Review Fees, Amended to Reference the Master Fee Schedule. 15.24.035 Previously Used Materials. 15.24.040 Fees for Permits and Inspections. 15.24,045 Distribution Panels - Separate Required When. 15,24.050 Circuit Cards to be Posted When. 15.24.055 Electric Fences - Defined - Prohibited. 15,24.060 Phase Arrangement - Amended. 15.24.010 California Electrical Code, 1998 Edition, known as the California Code of Regulations, Title 24, part 3 and National Electrical Code, ~ 1996 Edition, Adopted by Reference. There is hereby adopted by reference that certain document known and designated as the California Electrical Code, 1998 Edition and National Electrical Code, ~ 1996 Edition, as published by the National Fire Protection Association, and including the Uniform Administrative Code Provisions for the National Electrical Code, ~ 1996 Edition, as published by the International Conference of Building Officials. Said documents are hereby adopted as the Electrical Code of the City of Chula Vista, California regulating the installation, repair, operation and maintenance of all electrical wiring and electrical apparatus of any nature whatsoever, whether inside or outside of any building, and issuance of permits and providing for the inspection thereof 15.24,015 Board of Appeals and Advisors. Subsection (a) of Section 203 of the Uniform Administrative Code Provisions for the National Electrical Code amended to designate Board of Appeals and Advisors as the Board of Appeals. In order to hear and decide appeals of orders, decisions or determinations made by the Building Official relative to the application and interpretations of this code, there shall be and is hereby created a Board of ø tl) -- / Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to electrical aspects of construction. The buildin. official <lireetsr sf" ~ilàiBg a"d lio"oiHg shall be an ex-officio member who shall not be entitled to vote and who shall act as secretary to the Board. The Board of Appeals and Advisors shall be appointed by the city council from the qualified electors of the City in accordance with the provisions of Section 600 et seq. of the Charter. The Board shall render all decisions and fmdings in writing to the buildin. official direoter efbuilding ""d lie~Giflg with a duplicate copy to the appellant. The decision of the Board is fmaL The Board of Appeals and Advisors shall recommend to the city council such new legislation deemed necessary to govern electrical aspects of construction in the City of Chula Vista, 15.24.020 Enforcement Authority - Powers and Duties of the buildin. official Direetor of Bllildiag 8ad HOllsiag . Subsection (a) of Section 201 of the Uniform Administrative Code Provisions for the National Electrical Code amended as it applies in Chula Vista shall read as follows: Section 201(a) GeneraL It shall be the duty of the buildin. official Difoetor efB"i/diflg and Heuoiflg to enforce the provisions of this code. The buildin. official shall be the Assistant Director of Planuin. and Buildin.. For such purposes, the Building Official shall have the powers of a law enforcement officer. 15.24.025 Section 304(a) of the Uniform Administrative Code Provisions for the National Electrical Code amended to have permit fees reference City's Master Fee Schedule, Subsection 304(a) of Section 304 "Fees" of the Uniform Administrative Code Provisions for the National Electrical Code as it applies in Chula Vista shall read as follows: Section 304(a) Permit Fees, The fee for each permit shall be set forth in the Master Fee Schedule of the City of Chula Vista. 15.24.030 Subsection 304(b) of the Uniform Administrative Code Provisions for the National Electrical Code amended to have plan review fees reference City's Master Fee Schedule. Subsection 304(b) of Section 304 "Fees" of the Uniform Administrative Code Provisions for the National Electrical Code as it applies in Chula Vista shall read as follows: Subsection 304(b) Plan Review Fees, When submittal documents are required by subsection (b) of Section 302, a plan review fee shall be paid at the time of submitting the submittal documents for plan review. The plan review fees for electrical work shall be equal to 25 percent of the total permit fee as set forth in the Master Fee Schedule of the City ofChula Vista. 15.24.035 Previously Used Materials. Previously used materials shall not be reused in any work without approval by the buildin. official <lireo!er efb"ilàiBg ""d he"oing or an authorized deputy. 15.24.040 Fees for Permits and Inspections. Fees for processing and inspecting electrical permits shall be specified in the master fee schedule. ),RJ ~K-2 --_._~_._-~,- Note: Ampere rate shall apply to the secondary side of the transfonner or transfonners, 15.24.045 Distribntion Panels - Separate Required When. Each store in a store building, each flat in a flat building, and each building used as a dwelling shall be so wired that each store, apartment, flat or dwelling shall have separate lighting and/or power distribution panels. Such panels shall not serve other portions of the building. Hotels, motels, hotel apartments and similar types of buildings may be wired rrom one or more distribution panels. 15.24.050 Circuit Cards to be Posted When. When requested by the buildinQ official directsr sf lm,làiHg 8f!à hSHSiBg, a complete schedule of circuits showing the number, kind and capacity of each outlet on each circuit shall be posted on each job prior to rough inspection. 15,24.055 Electric Fences - Defined - Prohibited. A. As used herein, the tenn electric fence includes all fences which in any way use electrical energy as an additional deterrent or have wires charged with electricity which are not covered with adequate insulation to protect persons and animals coming in contact therewith. B. No electric fence may be constructed, maintained or operated within the city. 15.24.060 Phase Arrangement - Amended. Section 384-3(1) of the 1993 National Electrical Code is hereby amended to read: Phase Arrangement. The phase arrangement on three-phase buses shall be A, B, C from rront to back, top to bottom, or left to right, as viewed rrom the rront of the switchboard or panelboard, The C phase shall be that phase having the higher voltage ground on three-phase, four-wire delta-connected systems. Other busbar arrangements may be permitted for additions to existing installations and shall be marked. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the National Electrical Code, 1996 Edition and Unifonn Administrative Code Provisions for the National Electrical Code, 1996 Edition, which are noted in the Chula Vista Municipal Code and restated in this Ordinance, ;d'" ~/<- :5 SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as follows: the State of Califomia has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the National Electrical Code no later than July I, 1999 The enactment of this ordinance by July I, 1999 will ensure compliance with State mandates. SECTION IV. EFFECTIVE DATE. Pursuant to the provisions of Charter Section 311 (d) and 312( d)( 4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affIrmative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to form by ,~c4<%y¡Á~¿' obert Leiter Director of Planning and Building ing and Building/Building OffIcial J?C ¿,J.(-- 1/ ORDINANCE NO. :l.?%5-ß AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15,24 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALlFORNIA ELECIRICAL CODE, 1998 EDmON AND THE NATIONAL ELECIRICAL CODE, 1996 EDmON THE CITY COUNClL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That Chapter 15,24 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.24 ELECfRICAL CODE AND REGULATIONS Sections: 15.24.010 California F.I"ctrkal Cod,,_ 19911 Edition and National Electrical Cod~ .122íi Edition and Uniform Administrative Code Provisions for the National Electrical Code, ~ 12.26 Edition, adopted by reference. 15.24.015 Advisory and Appeals Board. 15.24.020 Enforcement Authority - Powen and Duties of the Buildin" Official DWeetOF of BuildiBg &Rd HB89iø.g 15.24.025 Section 304(a) of the Uniform Administrative Code Provisions for the National Electrical Code, Permit Fees Amended to Reference the Master Fee Schedule. 15.24.030 Section 304(b) of the Uniform Administrative Code Provisions for the National Electrical Code, Plan Review Fees, Amended to Reference the Master Fee Schedule. 15.24.035 Previously Used Materials. 15.24.040 Fees for Permits and Inspections. 15.24.045 Distribution Panels - Separate Required When. 15.24.050 Circuit Cards to be Posted When. 15.24.055 Electric Fences - Defined - Prohibited. 15.24.060 Phase Arrangement - Amended. 15.24.01 0 California Electrical Code, 1998 Edition, known as the California Code of Regulations, Title 24, part 3 and National Electrical Code, t99a .122íi Edition, Adopted by Reference. There is hereby adopted by reference thai certain document known and designated as the rjllifomia Electrical Code 1998 Edition and National Electrical Code, ~ 1996 Edition, as published by the National Fire Protection Association, and including the Unifonn Administrative Code Provisions for the National Electrical Code, ~ ~ Edition, as published by the International Conference of Building Officials, Said documents are hereby adopted as the Electrical Code of the City of Chula Vista, California regulating the installation, repair, operation and maintenance of all electrical wiring and electrical apparatus of any nature whatsoever, whether inside or outside of any building, and issuance of pennits and providing for the inspection thereof. 15.24.015 Board of Appeals and Advisors, Subsection (a) of Section 203 of the Unifonn Administrative Code Provisions for the National Electrical Code amended to designate Boatd of Appeals and Advisors as the Boatd of Appeals, In order to hear and decide appeals of orders, decisions or detenninations made by the Building Official relative to the application and interpretations of this code, there shall be and is hereby created a Boatd of þð kL~/ - ---.--- -----...-----...--- Appeals and Advisors consisting of seven members who are qualified by e'¡perience and training to pass upon matters pertaining to electrical aspects of construction. The buildinll official àireelor sf ¡",;¡tIiHg lIBEl DOOSÌflg shall be an ex-officio member who shall not be entitled to vote and who shall act as secretaIy to the Board The Board of Appeals and Advisors shall be appointed by the city council from the qualified electors of the City in accordance with the provisions of Section 600 et seq, of the Charter. The Board shall render all decisions and findings in writing to the buildine: official tlireeter af1!lli!àiBg IIfId ReHGÏÐg with a duplicate copy to the appellant The decision of the Board is final, The Board of Appeals and Advisors shall recommend to the city council such new legislation deemed necessary to govern electrical aspects of constmction in the City of Chula Vista. 15.24.020 Enforcement Authority - Powers and Duties of the hllildim. nfficial DiPeeter ef B..íllliøg lIBEl H9IIMng . Subsection (a) of Section 201 of the Uniform Administrative Code Provisions for the National Electrical Code amended as it applies in Chula Vista shall read as follows: Section 201 (a) GeneraL It shall be the duty of the buildine: official DiÆelar ef BuilàiBg anà Ho1JSiHg to enforce the provisions of tIùs code, The buildine: official shall be the Assistant Director of P1armine: and Buildiue: For such purposes, the Building Official shall have the powers of a law enforcement officer, 15.24.025 Section 304(a) of the Uniform Administrative Code Provisions for the National Electrical Code amended to have permit fees reference City's Master Fee Schedule. Subsection 304(a) of Section 304 ''Fees'' of the Uniform Administrative Code Provisions for the National Electrical Code as it applies in Chula Vista shall read as follows: Section 304(a) Permit Fees, The fee for each pennit shall be set forth in the Master Fee Schedule of the City of Chula Vista. 15.24.030 Subsection 304(b) of the Uniform Administrative Code Provisions for the National Electrical Code amended to have plan review fees reference City's Master Fee Schedule. Subsection 304(b) of Section 304 "Fees" of the Uniform Administrative Code Provisions for the National Electrical Code as it applies in Chula Vista shall read as follows: Subsection 304(b) Plan Review Fees, When submittal documents are required by subsection (b) of Section 302, a plan review fee shall be paid at the time of submitting the submittal documents for plan review, The plan review fees for electrical work shall be equal to 25 percent of the total pennit fee as set forth in the Master Fee Schedule of the City of Chula Vista. 15.24.035 Previously Used Materials. Previously used materials shall not be reused in any work without approval by the buildine: official àireelor efbuildiBg enEl heHSiftg or an authorized deputy. 15.24.040 Fees for Permits and Inspections. Fees for processing and inspecting electrical pennits shall be specified in the master fee schedule. ?¥ ¿L-:l, "--. - Note: Ampere mte shall apply to the secondaIy side of the transfonner or transfonners, 15.24.045 Distribution Panels - Separate Required When. Each store in a store building, each flat in a flat building, and each building used as a dwelling shall be so wired that each store, apartment, flat or dwelling shall have separate lighting and/or power distribution panels. Such panels shall not serve other portions of the building, Hotels, motels, hotel apartments and similar types of buildings may be wired from one or more distribution panels, 15.24.050 Circuit Cards to be Posted When. When requested by the buildin!! official åireetor sf èuiJàing aOO hoosiag, a complete schedule of circuits showing the number, kind and capacity of each outlet on each circuit shall be posted on each job prior to rough inspection. 15.24.055 Electric Fences - Defined - Prohibited. A. As used herein, the tenn electric fence includes all fences which in any way use electrical energy as an additional deterrent or have wires charged with electricity which are not covered with adequate insulation to protect persons and animals coming in contact therewith, B. No electric fence may be constructed, maintained or operated within the city. 15.24.060 Phase Arrangement - Amended. Section 384-3(t) of the 1993 National Electrical Code is hereby amended to read: Phase Anangement The phase arrangement on three-phase buses shall be A, B, C from front to back, top to bottom, or left to right, as viewed from the front of the switchboard or panelboard, The C phase shall be that phase having the higher voltage ground on three-phase, four-wire de1ta-connected systems. Other busbar arrangements may be permitted for additions to existing installations and shall be marlced. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the National Electrical Code, 19% Edition and Unifonn Administrative Code Provisions for the National Electrical Code, 19% Edition, which are noted in the Chula Vista Municipal Code and restated in this Ordinance, J8 ¿)..~ .3 SECTION ill. EFFECTIVE DATE. This ordinance will take effect and be in force on July 1, 1999, Presented by Approved as to fonn by !>f6' ¿, L~ tf .. - ORDINANCE NO. :2. 7tr¿-4 AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA, ADOPTING A NEW CHAPTER 15.26 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA ENERGY CODE, 1998 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION L That a new Chapter 15.26 of the Chula Vista Municipal Code is hereby added to read: Chapter 15.26 ENERGY CODE Sections: 15.26.01 0 California Energy Code, 1998 Edition, adopted by reference. 15.26.010 California Energy Code, 1998 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the California Energy Code, know as California Code of Regulations Title 24, Part 6, 1998 Edition as copyrighted by the International Conference of Building Officials. Said document is hereby adopted as the Energy Code of the City of Chula Vista, California for the purpose of regulating building design and construction standards to increase efficiency in the use of energy for new residential and nomesidential buildings, SECTION II, FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Referenced Standards Code, 1998 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION IlL URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the California Energy Code no later than July 1, 1999 The enactment of this ordinance by July 1, 1999 will ensure compliance with State mandates. SECTION IV, EFFECTIVE DATE. Pursuant to the provisions of Charter Section 311(d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July 1,1999 if passed by at least four (4) affirmative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are, ;£ f¿,ì! ~ / Presented by Approved as to fonn by ing and Building/Building Official ;A- ¿/'1-- ,2 · - - ORDINANCE NO. 02 ?rtt-ß AN ORDINANCE OF THE CITY OF CHULA VISTA, ADOPTING A NEW CHAPTER 15.26 OF THE CHULA VISTA MUN1CIP AL CODE ADOPTING THE CALIFORNIA ENERGY CODE, 1998 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That a new Chapter 15.26 of the Chula Vista Municipal Code is hereby added to read: Chapter 15.26 ENERGY CODE Sections: 15.26.010 California Energy Code, 1998 Edition, adopted by reference. 15.26.010 California Energy Code, 1998 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the Califonùa Energy Code, know as Califonùa Code of Regulations Title 24, Part 6, 1998 Edition as copyrighted by the International Conference of Building Officials. Said document is hereby adopted as the Energy Code of the City of Chula Vista, Califonùa for the purpose of regulating building design and construction standards to increase efficiency in the use of energy for new residential and nonresidential buildings. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, tCITain, and location does necessitate and demand specific amendments to the California Referenced Standards Code, 1998 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. EFFECTIVE DATE. This ordinance will take effect and be in force on July 1, 1999. Presented by Approved as to form by ~~L.£.!. Robert Leiter tf/ Director of Planning and Building ~~ Brad Remp, C.B.O Assistant Director ofPlanm g and BUlldmgIBUlldmg Official ,ø1 t.;v'''"j .-.--_..-.-~...-----.----.- --- ORDINANCE NO, :< ??'?~-4 AN URGENCY ORDINANCE OF WE CITY OF CHULA VISTA AMENDING CHAPTER 15.28 OF WE CHULA VISTA MUNICIPAL CODE ADOPTING WE CALIFORNIA PLUMBING CODE, 1998 EDITION AND THE UNIFORM PLUMBING CODE, 1997 EDITION THE CITY COUNCIL OF WE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.28 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.28 PLUMBING CODE AND REGULATIONS Sections: 15.28.010 California Plumbill!! Code. 1998 Edition and Uniform Plumbing Code, 1994 1997 Edition, adopted by reference. 15.28.020 Section 102.1 amended to designate building official. 15.28.030 Section 103.4.1 amended to have fees reference city's Master Fee Schedule. 15.28.040 Section 103.4.4 amended to exempt imposition of investigation fees for emergency work. 15.28,050 Section 103.5.6 amended to reference the city's Master Fee Schedule. 15.28.010 California Plumbinl! Code. 1998 Edition, known as the California Code of Rel!ulations. Title 24. Dart 5, aDd Uniform Plumbing Code, 19941997 Edition, adopted by reference. There is hereby adopted by reference the California Plumbinl! Code, 1998 Edition, known as the California Code of Regulations, Title 24 Dart 5, and Uniform Plumbing Code, -l994 1997 Edition, and Appendices A, B, C, D and H document as copyrighted by the International Association of Plumbing and Mechanical Officials ("UPC"). Said document is hereby adopted as the Plumbing Code of the City of Cbula Vista for regulating the complete installation, maintenance and repair of plumbing, drainage systems, water systems, gas systems, private sewage disposal systems on all properties and within all buildings and structures in the City. Providing for the issuance of pennits and collection of fees therefor and each and all such regulations, provisions, penalties, conditions and terms of the California Plumbing Code, 1998 Edition, and Uniform Plumbing Code, -l994 1997 Edition, and Appendices A, B, D and H are hereby referred to, adopted, and made a part thereof as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended. 15.28.020 Section 102.1 amended to designate building official. Section 102.1 of the UPC as it applies in Chula Vista shall read as follows: Administrative Authority. Section 102.1 The Administrative Authority shall be the assistant director of olanning and buildimz Difeeter efBtiHàiftg ftRà IIeasiftg -the Authority duly appointed to enforce this code. %' !øO-/ 15.28.030 Section 103.4.1 amended to have fees reference cily's Master Fee Schedule. Subsection 103.4.1 of Section 103.4 "Fees" of the UPC as it applies in Chula Vista shall read as follows: 103.4.1 Permit Fees. The fee for each permit shall be set forth in the Master Fee Schedule of the City ofChula Vista. 15.28.040 Section 103.4.4 amended to exempt imposition of investigation fees for emergency work. Subsection 103.4.4 of Section 103.4 "Fees" of the UPC as it applies in Chula Vista shall read as follows: Section 103.4.4 Investigation Fees. Subsection 103.4.4.1 Whenever any work for which a permit is required by this code has been commenced without fIrst obtaining said permit, a special investigation shall be made before a permit may be issued for such work. Subsection 103.4.4.2 An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be equal to the amount of the permit fee that would be required by this code if a permit were to be issued. The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this code, nor from any penalty prescribed by law. Subsection 103.4.4.3 This provision shall not apply to emergency work when it shall be proven to the satisfaction of the Administrative Authority that such work was urgently necessary and that it was not practical to obtain a permit before commencement of the work. In all such cases, a permit must be obtained as soon as it is practical to do so, and if there be an unreasonable delay in obtaining such permit, the investigation fee as herein provided for shall be charged, 15.28.050 Section 103.5.6 amended to reference the city's Master Fee Schedule. Section 103.5.6 of the UPC as it applies in Chula Vista shall read as follows: Section 103.5,6 Reinspections. A reinspection fee may be assessed for each inspection or reinspection when such portion of work for which inspection is called is not completed or when required corrections have not been made. This provision is not to be interpreted as requiring reinspection fees the fIrst time a job is rejected for failure to comply with the requirements of this code, but as controlling the practice of calling for inspections before the job is ready for inspection or reinspection. Reinspection fees may be assessed when the approved plans are not readily available to the inspector, for failure to provide access on the date for which the inspection is required, or for deviating from plans requiring the approval of the Administrative Authority. To obtain a re-inspection, the applicant shall me an application in writing upon the form furnished for that purpose and pay the re-inspection fee in accordance with the Master Fee Schedule of the City of Chula Vista. In instances where reinspection fees have been assessed, no additional inspection of the work will be performed until the required fees have been paid, J;6 &,¿J -2 SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Plumbing Code, 1998 Edition and the Unifonn Plumbing Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. URGENCY FINDINGS, The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Unifonn codes, including the Unifonn Plumbing Code no later than July I, 1999 The enactment of this ordinance by July I, 1999 will ensure compliance with State mandates. SECTION IV. EFFECTIVE DATE. Pursuant to the provisions of Charter Section 3 II (d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affinnative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to fonn by ~~ Assistant Director of PI ann g and Bmldmg/Bmldmg OfficIal p 'tc7--J - - ORDINANCE NO. ..2. 78"7- ß AN ORDINANCE OF TIlE CITY OF CHULA VISTA AMENDING CHAPTER 15,28 OF TIlE CHULA VISTA MUNICIPAL CODE ADOPTING TIlE CALIFORNIA PLUMBING CODE, 1998 EDmON AND TIlE UNIFORM PLUMBING CODE, 1997 EDmON TIlE CITY COUNCIL OF TIlE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That Chapter 15.28 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.28 PLUMBING CODE AND REGULATIONS Sections: 15.28.010 California Plumhinp' C;odp_ 1998 Ellitinn and Uniform Plumbing Code, t994 1221 Edition, adopted by reference. 15.28.020 Section 102.1 amended to designate building official 15.28.030 Section 103.4.1 amended to have fees reference city's Master Fee Schedule. 15.28.040 Section 103.4.4 amended to exempt imposition of investigation fees for emergency work. 15.28.050 Section 103.5.6 amended to reference the city's Master Fee Schedule. 15.28.010 California Plumhinp' Codf'_ 19911 Edition known a~ the California Code of RPØ1I1otinnL Title 24. Dart 5 and Uniform Plumbing Code, ~ l221 Edition, adopted by reference. There is hereby adopted by reference the r..lifornia Plumbin2 Code 1998 Edition. known as the r..lifomia Code of Rel!ll!ations Title 24, Dart 5 and Uniform Plumbing Code, ~ 1997 Edition, and Appendices A, B, C, D and H docmnent as copyrighted by the International Association of Plumbing and Mechanical Officials ("UPC"), Said docmnent is hereby adopted as the Plumbing Code of the City of Chula Vista for regulating the complete installation, maintenance and repair of plumbing, drainage systems, water systems, gas systems, private sewage disposal systems on all properties and within all buildings and Structures in the City. Providing for the issuance of pennits and collection of fees therefor and each and all such regulations, provisions, penalties, conditions and tenns of the r..lifomia PlumbiD2 Code 1998 EditiOlL and Unifonn Plumbing Code, ~ !22Z Edition, and Appendices A, B, D and H are hereby referred to, adopted, and made a part thereof as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended 15.28.020 Section 102.1 amended to designate building official Section 102,1 of the UPC as it applies in Chula Vista shall read as follows: Administrative Authority, Section 102.1 The Administrative Authority shall be the assistant director of D1annin2 and buildin2 Difeetor of Builàiag lIRE! HoHSing the Authority duly appointed to enforce this code, Æ (,¡?- / .,..- _._~- "-- __,,_ - .. - - ___" _n' _. _" ~._ _n _ _ _"__,' __ ,__ _,,'n ____ ¿L_ L'_____ ~ .-.----" 15.28.030 Section 103.4.1 amended to have fees reference city's Master Fee Schedule. Subsection 103,4,1 of Section 103.4 "Fees" of the UPC as it applies in Chula Vista shall read as follows: 103.4.1 Permit Fees. The fee for each pennit shall be set forth in the Master Fee Schedule of the City of Chula Vista. 15.28.040 Section 103.4.4 amended to exempt imposition of investigation fees for emergency work. Subsection 103.4.4 of Section 103.4 "Fees" of the UPC as it applies in Chula Vista shall read as follows: Section 103.4.4 Investigation Fees, Subsection 103.4.4.1 Whenever any work for which a pemùt is required by this code has been commenced without first obtaining said pemùt, a special investigation shall be made before a pennit may be issued for such work Subsectiou 103,4.4.2 An investigation fee, in addition to the pennit fee, shall be collected whether or not a permit is then or subsequently issued The investigation fee shall be equal to the amount of the permit fee that would be required by this code if a permit were to be issued The payment of such investigation fee shall not exempt any person from compliance with all other provisions of this code, nor from any penalty prescribed by law, Subsection 103.4.43 This provision shall not apply to emergency work when it shall be proven to the satisfaction of the Administrative Authority that such wOIk was urgently necessaxy and that it was not practical to obtain a pennit before commencement of the work In all such cases, a pennit must be obtained as soon as it is practical to do so, and if there be an unreasonable delay in obtaining such permit, the investigation fee as herein provided for shall be charged 15.28.050 Section 103.5.6 amended to reference the city's Master Fee Schedule. Section 103.5,6 of the UPC as it applies in Chula Vista shall read as follows: Section 103.5,6 Reinspections, A reinspection fee may be assessed for each inspection or reinspection when such portion of worlc for which inspection is called is not completed or when required corrections have not been made. This provision is not to be interpreted as requiring reinspection fees the first time a job is rejected for failure to comply with the requirements of this code, but as controlling the practice of calling for inspections before the job is ready for inspection or reinspection, Reinspection fees may be assessed when the approved plans are not readily available to the inspector, for failure to provide access on the date for which the inspection is required, or for deviating from plans requiring the approval of the Administrative Authority, To obtain a re-inspectiOIl, the applicant shall file an application in writing upon the fonn furnished for that purpose and pay the re-inspection fee in accordance with the Master Fee Schedule of the City of Chula Vista. In instances where reinspection fees have been assessed, no additional inspection of the worlc will be perfonned until the required fees have been paid. gr ~p-~ ~_...~.H SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly finds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Plumbing Code, 1998 Edition and the Uniform Plumbing Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION m EFFECTIVE DATE. TI1is ordinance will take effect and be in force on July 1, 1999. Presented by Approved as to form by ç~ John Kaheny City Attorney , g and BuildingIBuilding Official j.(J ~?- J - - ORDINANCE NO. J ?~--/J AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.36 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA FIRE CODE, 1998 EDITION AND THE UNIFORM FIRE CODE, 1997 EDITION THE CITY COUNCIL OF TIlE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That Chapter 15.36 of the Chula Vista Municipal Code is hereby amended to read as follows: Chapter 15.36 FIRE CODES Sections: 15.36.010 California Fire Code. 1998 Edition and Uniform Fire Code, -W94 1997 Edition, Adopted by reference. 15.36.020 Fire Department !.eeeos anll Water Supply Seelion 902.2.1 amenllell. 15.36.030 'JVater 8ufJplies BRd Fire HytlfllBts Seetion 903.1.2 amenllell. 15.36.010 Portable Fire Eo:tinguishers 8eetioR 1992.1 am.eaded.. 15.3fí.959 Fire ExtiBgaiskiBg Systems 8eetioR 1903.1.1 Bæeaded. 15.36.060 Fire Extinguiohing Syotems Seetion 1003.2.2 ameRllell. 15.36.070 Fire ExtiRguiohing Syatems Seetion 1003.2.8 Croup Rl amenllell. lë.3fí.989 Fire ExtiRguiohing Syatems l\IBHitoFing aRd A:larms Seetion 1003.3 ameRdell. 15.36.090 Fire ExtiHguiskiag 8ystems 8taRdpipe ReElUiremeRts TallIe 1991 A ømeaded. 15.36.100 Fire Alarm 8ystems 8eetioR 1997 ameaded to add 8eetioR 1007.1.18 PlaRs anll SpeeiliealioRs. 15.36.110 Fire ÅJaræ 8ysteRlS ~eeli8n 1007.2.9.1.1 Syatem Requirements ameRdell. 15.36.120 Fire jJarRl. Systems 8eetisR ¡097.3.3.{j.l1U8Ritariag is ameRded. 15.36.130 CeRera] 8afety Pf'eeauti8RS Iaeiaerat8Fs, OpeR :HUFHiRg aRd 2ammereial Barheeue Pits Dise8RtiRuBRfe Seetion 1102.2.5 is ameRllell. 15.36.110 TeRts, CRR8pies aRtI TeIBp8Fary ~i£lBlIFaRe StFHdHFes Table n05 !. LoeatioR, aeeess aRd parlHRg fer teRts, eaR8pies aRd teæp8Fary lBeællraRe strHetHFes is RlBeRded. 18.3(j.l§O DiapeR,ing Abo"egrouRII Tanl,. Seetion 5202.1.1 amenllell 15.36.160 YIRlBlBallle & e8IBltHstillle LiqHids Spill Control, DFaiRage CORtFO¡ aRII ~ee8nll.ry Containment Section 7901.8.2 Spill C8Rtral is ameRdell. 15.36.170 HailRFd8HS ~lateFial5 IlIeAtilioa!ioR SigRs SeetioR 8001.7 amended. 1§.3(j.lS0 High Pilell eombustible Storage Pallet Storage Seeti8R 810S Rdded. 15.36.010 Uniform Fire Code, 1994 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the California Fire Code. 1998 Edition and UnifoIm Fire Code, and all Appendices, -W94 1997 Edition, as compiled and published by the International Fire Code Institute in cooperation with the International Conference of Building Officials and the Western Fire Chiefs Association, three (3) copies of which are on file in the office of the City Clerk. Subject to such amendments as are herein contained, said document is hereby adopted prescribing regulations governing conditions hazardous to life and property fiom fIre or explosion, and each and all such regulations, provisions, penalties, conditions and tenus of said Uniform Fire Code are hereby referred to, µ,~tf--/ adopted and made a part hereof as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended as set forth in this Chapter. 16.36.020 Fire BepBFtæeRt }aeeess Roads BHd \Nater gøpply ScetioB 902 ameBllell. The fust full13Bfsgraj3R sf Seet3.sR 992.2.1 (RetlliÎfeå }~eeess) sf ¿'\-rtiele 9, PaR III sf Fhs UFe as it Ø;f)fllies iR the Cit) sf Clitila Vista, is heresy am.eaeleel t6 reBel as falle ,(8, all ether parts sf said seetieR t6 remam the same as in the UFC: Fife }43fJlHfttHs aeeess reads &Rei at the BfJtisR sf the Pire Chief, [}fa ¡&Res shall èe IUS, ¡lieel Îfl. aeeerdanee ..ith 8eetisB 991 and. 992.2 fer a.sF) faailit)', IniÏlàiag Sf flameR sf a Btiilàing eereafter eSHsŒusteel ~r fRaved Ïftte af "::ithiR tRe jæisàietiBB .. Rea &BY f'SFâeB sf the faeility aT 8B) fisHieR sf a+1 emteRef 7/all sf tHe f]fst stSFÿ sf the Building is laeated. mere duæ 159 feet (15729 mæ) Hem fire aj3f1lHftftls aBBess as fftBBStKeà èy &B &fI13fe"¡eà reme aŒl:I.ftà the emteFier ef the l:ni41ài:ag af faeilif). (gee als8 8eet4aR 992.3 fer f16Fsa:nnel aesess te Buildings). lë,~6.0~0 "iVater SHp]dies BRtt Fire HydrBRts 8eeü8R 993 BmeRded. SeeåeR 993.1.2 (ReEtHired ÌnstallatieRs) sf }~rtiele 9 Part III, ef the DYC as it ~lies te the City ef Càt!1a '.'ista, is heres) ameøded ta add as f-ella.. s after the [FSt pangFBph: Far fire safety dl:lIÎHg 8eRsfi:1aeåeR, alteratiaR ef deRiBliâeR efa lnti.làing, see Arâele 8'7." (a) PHe k) àn.nts, ....tJ.ere reEtliHed in all st1bài. isiaRs, ",,_HI eemplenes, 6affiffiereial de .elapæeats, ete., sRall Be æstalled æ aft ape:æèle eaRditiaR priar tB aRY 8emà1:1stH91e seR3a:aetiBft æateFiMs being plaeeà ea die site. EÐ) \VB.eB.e~/er ilß) eBRiBHstible material is plased 8ft the site ar my '::erlr is beæg daRe eeærar/ t8 the pra. isiens ef this eeàe, tke Cffief R1a) enter the said material JeHle. eà Hem the site ef the ..ar.!: stepped BY R0tiee ifl .:fÎtæg seF.:ed eR the e ..lief ar ageftt, aad 8.Il) ßlieR persBRs shall feFtB... ith eampl) with said RBtiee UHtil amfteFÏøed b:,' tÀ.e Chief t8 preeeed. 1§.3fí.919 Portahle Fire ExtiRgHiskers 8eeti8R 1992 ameRded. The falls':/iBg aeftteaee Bftallse aààeà te 'efte eRd efSeeåeR 1992.1(GeReFal) ef AHiele 19 afilie UPC, as it Bpfllies Hi the City sf Cluila Vista. The 1TIifHnmm. fated fli'e enångtiisher aeeeptaèle 1a Ø1e City sf Cffitla '-'ista is 2}~1 9Ee. n 16.~6.060 Fire ExtiRgHiskiRg Systems Seeti8R 1993 ameøtted The feIl8·.·.ing seateRee shall Be added ta the ead ef Seaåea 1003.1.1 (CeReIal) ef ~\rtiele 19 ef the liFC, as it ap13lies iB. the Cif) sf CRaIa Vista. Þ.R fire eì~tingui8RiBg s)'3tems shall Be installed by a state lieeased eefttraetar. JZnse13âeR: V,q¡ea ""rre-¡eà B) the Fife Chief, RJ aee1:lpaneiea HrtS:) Be eJlc"'!'tcà frem this rSftHHemeæ. ft ¿CP-2 lé.3é.OéO Fire ExtiBgaiskiRg Systems Seeti8R 1003.2.2 ameaEled gooneft 1003 2 ~ E'¡¡ ÈI~'IlElà' HI ",' ~ & e66Hpafl.eies en ~ g , , mg e felleì-.1Hg seBteaee 1e tR e~, fStifJ R, D:t\'lSieB 3 afl.è. GrS1:1 T e ead sf ~ Jtlele 1 9 ef1ke T TPC ' . p U (Oeettpafleies) amsaà à ~ , es .t "1'1'110 . th G' 0 6. 1ft .-,-of) h'IB' SIR 0 >ly efClHila "iota è 1" I H1g rogarBloos ef . . 11.1 àing IS Riere thaFl 19 f-eet sr f¡ s"eel:i~afl.ey elassit1eafÎ.sFl Sf ~'l3 f 8Hi' steRes er ffiare iH heigfR. e s eensHustisR, ·;.'Rea sHeR 16.36.070 Fire Extiagaiskiag Systems Seetiea 1003.2.8 Cr8ap R1 a £eotieft I 903,2.8 (Coe. R 'H" Iftoftllsll. sf CR1l1a Vista, is hereby flIRe:às~ Dl.lSlBft 1 eselipaasies) ef ¿\rtiele 19 ef ' te Teaà as fe11ews: the fe11e ing Hi,e twC, as It Bp}3lies in 1È.e C't)' " " pafBgt'Bf'h !S aBBoà th ! ,,'heft aft "I'pre"eB fife . ¡ I at 0 OftB ef 100328' è lB' . OpTlf"Or S,SI' . .. . .! IRgs oeftslrtietoB after lttl eIR 15 re! !iffeB BY the pro-.-io;efto f' . EÞ,;ollH1g ....its, shall be proYiB.i ,,1;~9n, eft tho saIRe propofly, regardl:, th~ Seel18ft, OOY ""B all .. an Bp}3fe . aà fife s}3rinlcler Bj"St .5 8 helgRt af IHilRBer sf eRi. 16.36.080 Fire E][tiagaiskiag Systems l\luaiteriBg aREI /IJarms See' g.slie.. 1993.3 I ("'Ii R . Iioft 1003.3 alftsftllsll. h Ð . .. ere eéltU:faà~ fA' ere y aæeftEleà te reaà as falle &. e ~ Jtiele 1 G Bf the UPC as it a I' . ,,5. pp lea tB the Crt)' ef Or I U" . " oa .!ota,lS ,.tHere refttiireà A 11 .. I" . u a ss eefttf U" fie"!; s';;itehes eft aU ' . ~ I 8 mg the ",-;ater 5lif'}3ly ref ~ . """ spFID [ or systoms shall B. olo.trlOall ' "" a_tl. spri.:lldor sj'stOft1B IIftB -- at j Riemtered ì.~¡£ere the Rt:iæàa f ,.. sr f e sprmklSFS 1. T"'.R!y . n er ffieFS ill Cre1lf' I D·..· . 2. ORe æmàfed af mere Î:H aR' e~ .lamRS 1.1 ~d 1.2 OeBtiflaneies. er eeeHj38Beles. "alue ,. . , ~aætBrmg and ';¡ster fIe'" al a1:1tematieaR,y 1Faß.sætteà te .. &nR anà 1re1.ible aigaals shall se è" . " .tatio.. as ".fmo" BY U F C ~ "l'p,e';od eeRlfal sta!;eft '0...8t. ta wOOod) B.fferoÐt and shall B. ee ' . . . taReitlrd 19 ~ It' S !tOft er p,epR.Ia· .. "O""".fto. .f tit. .Bier sIt.1I d er, y; .ft "I'pr.yeB B) tho B ld' f). Ift.æt.nng leea!!..., Ifttt(; ft.t o"eood 199 ..... 11ft a"d"'le ,igot.l at a eo"olant! m æg em.lal '-"ilk tlte Iftoft;tering e.Maet, initiat." aft:l~ HOIR tho eit) limils .f the C;ty :f ~o~de~}eoatiOft. Those a ept!o.. ef tit!. .OB.. 0 a . wta aftB "1'1'1)' 10 £XC:J2PTIOÞT' TTftà p1.iblie HkI' . . ~ er-gr81:mà key er hub '¡aI es Îfl ~ Resà Rst Be ffieB.itereà. ,feaà" sy Bs~œs }3reviàeà è . 1È. .". )- e B1tiB.IslJ'ahty er 16.36.090 Fire ExtiRgaiskiag 8ystems St8ftllpipsR ' eElalremeats TalJle 1001 ... Tho e"'ogof)" ef Grm. 2 ,. 8lftsftded. theLWCaSita}3}3lieGtBthe¿ty's~~lath~Ti:~~:~èe;.eà o:e1:1paney, sf TaèIe 1991 f~ sf AHi I 19 2 ' aIRoft OB te road as fello',,;o: ' . eo, ef . Oee1l:f1ane18S 2 stefÎes sr mere But less tftafl. 159 ¡; t" . ae ill helgftt, eneept Gre1:1fl Po D···· " ., 1.lSlea 3. xr ¿c:ý-3 1§.2á.199 Fire MartH 8) stems, Plalls Blld 8peeifieati8Rs SeetioB 1907.1.1a ameRded. , 8.eefi6a lQQ7.1.1a Plaߧ anà 8f!eeif..ieaåa A' ~~~e~ ~ .!be ?~ .~f CftuIa Vista is aeFoè)' ""'eBde;t:~dt~o~efa~~ ,~F.ife f.!RffiI S) stülm) af 1I1e UFC, aD it .. ~4'IfJlea 111:). ~ ø.,mgBe';:seetlØB100711aaft 8 ' . . er eeaBa Camplete plllll' ønd 'peeilieøtiaRB far [He ala' ¡07:;~::?:; :::·e~~I::::'~Wl:f ø:l~l:~Ii~::~:~~: ~~l~:e~ ~::~~: ~:~~i:~: ~:~:';::~~:I !11l~atmg aBd a¡_ 'igœliRg de':ises, "¡aFRI eaB:e saftlrOsteF,. .¡¡aer )'11llI, laeoliaB af 011 alW'RI' fa ..or eel1BeetieR, BalleF}' ealeulatians n'iriRg t")'e I :Rd lI'a"'la ,¡gRolmg a",,;¡'mBll!, a",urneiatiaR ISImg RlllFlBor af all e<jli;¡'meRt, devie:, '~d m.¡'eria::re:~ ~~;d medel ORd Stota Fire MOf."-ai 1!,3á.l10 F4re Marm 8ystem5 System & ' 109'.2.9.1.1 ameRded. eqHIFemeRts, Cr8Hp ß Di·isi8R 1 g -,' eeHpaReies 8 f , se 18R 8eetisB 1907.2.9.1.1 Csaeæl (Craa R g.... . . ~~I~Z,?~9 ~~~:: Miele 19 ef the UFC, a. k o~)'¡i~:I=~~ ~~;:7~~~Í' ,:a: fH.~ fHll)'arogr"l'''- af SeslieR " , ef pre ?lSISRS ts remaiR the same: Q , 18 a 18 ereèy aœeRàeà te reaà a8 GrSHf' R eeel:ipaBeies sliall Be pre :iàeà n.it:k fi 1 . GfeH ~ g' . . " Œe Q 8FfH sysfeæs àa: 13 -, l":ll3leø 1 eeeapaneies shaUBs previàeà'" k æ asser Bse ',11.th 8eeâsR 199'7.2S'. 8f)Elftæeøt lis1:ises thfee ar me!€! steries iB liei ., Hi. ~ ffißftt:itH &Rà attteælHÎs fire al8ffB s steæ it er ma"" slaRo' ill eeigilt ar eemarning 20 a;':.:: eaftt.H1mg 16 ar maFa d" ellillg \ffiits, Hi "a:e1' liI<e: ma.a ,teFlo, iR "-oight ar "0. iftg on eeet!]'ORt lead :l;;ot roams ORd H1 eaRgFog.ta Fe.id"".e" liI<ee ar IS reElHHeà èy tke "fe. ¡sieRS sf 1:flis seetisa BRB Sf ~~re. '.V:lisø an &f3fJrs':eà [He alaFffi s 'stem s~e pre)'eFly, FegOfàle'" afsi£e ar heigilt "=1 B '1I,~:¡]~' eaR,welad aftor JIfi) 1, 1992 ¿R the . ,a SeaaeR 190? 212 ,a )'Fa.1 a ',v¡tJ¡ OR "I')'re"ad fHe 01_ t .. . ' sys em.. See lS.3á.129 FiFe L\larm Systems Se.tiaR 1007.3.3.6.1 MaBitoriR!: i. .meRde". 8eetisR 199:;.3.3.6.1 CeaefBl sf }~rtiele 19 eftlie ... ameHàeàtefsaàasfellen,s' UPC,aslt8f'pheam1fleCif) erCk 1 ". . .. .' Li a . lata IS kereB)' 'N"OR r.<jIiired B ' "- G . , ) tl e Bier, fire al&Fffi systems shaH è ' a£ Femete stakeR asr. ise sr a 1esa1 tH81JR n'm R ...e ffism:tsreà B:,' an apfJreveà eeBHal prSf3rieta¡ . ~~eRded laeatioR. These ¡aeøtisR" IRftJ' Rat ~;lOa:d ~~;' a;¡o'¡oble ønd vi,ual 'igRftis ot ~ eeROlaR:' . lata anà 8fJpl) te RismtefÏßg se:tHFaets iBitiateà it à H1i .es Ram ,the sHy 1ifnits sf the City ef Cha1a a Sf a BpasR efthls eeàe. lS.2á.129 CeA~ral Safety Pre.oBliaR' IReiBeratars 0 ' 8eeH.8R ¡¡OJ.2.S DiseoRtiRuaRee is aRl.e~ds:~R HHFRIRg aad C8RlHlereial Bar13eeas Pits , SeetisR 1192.2.5 CeBeml Safety Preeaøtisøs S . , ~::~~:::' ~eR ~HFRiRg oR<i Cemmereial BoffieaBe P::~~RA~~~~;/af~!S;;;~iRHlllIee) af SeetioR 1192, , ere) aæeRàeà ts reaà as fslle'l/s: e ~ , as It 9:fIphes ill tRe Cify sf ~e eliief is autßaFÎ2Jeà ts feEl'.iÏfe æeinerater e"lOf dele....inas thot ,...ake amisoiaR' ore affe=~Y ~~:Ioee "'0 10 Be immodiataly di,.aminHed if the ef 1àe æeæeIEH:af ar fHeplaee is àeteFfHÎneà Bj' th . li' f 8eelif'aB~8 sf Blifi'8LiFlàing fJrsfle~ sr if flie tiSS a e 10 ta "aROIIMa 0 a.Lorda". eeRditieR. -'*'X ¿¿¡-i 16.36.l19 :¡: , eft 15, CRR81ues Bad. Tempera' pø.rlHRg: far teRts, eRR8pies 8ft;; ~iefRt3F8Re Struetufes Tahle 229S ... L . eæpørspY æeæhFRRe strudufe' . & oeatioR, øeeess sad The Þ r . 5 .. 8moR1l01I' . . IBHB"'" FHe aaeaso r du, ' . . ~ ~eeess MLà PadEillg fer Teats eR. .. &j "::làfRS as SRS1-.'R iB *6 tlÜr ""plieo Hi Ifte Cil; efC¡"'la ,,;¡;;,,,,,;;t:::à Tem~eF!!f) Membrane £~e~~ ~f.Taèle 3295 A ("LeeslieR, e ) amsaàeà 18 reaet as fell' e ~ .rtlele 32 af the UPC . 2 aus. ,as!t 9 feet 29 feet 29 feet 16.36.169 !.bo·/ograuBII:¡:8 I S R ~ eeti8R 5]92 11 . . RæeRded. Seetis8 5292 1 1 af Ami £tatiafla) efllia UfG' . . ~ e e 52 (Flammaèla and Ca 10' . the fella n Hig e¡¡ee!'tia: 11 applies Hi 1ft. City ef C".la "'ia:i'u~::~ LI'l.iidà Heter Ve"iele Foel DiBf'eRaiRg . ) an:t.ea ail. t8 read as fells 'S anà àà' .. a mg Claa, I anà II li'llRà' 10 S ill a. e"6 g . à frem.. aèsvsgrmißà tanks e~~~e rBUR ærHŒ shall Rat Be àÏSfJ8RSeà æte £aetlÐR 5292.36 ""à meet llie ~Iï ~.R t!tnIæ ..e ",atalleà maide s!'aaialllie r;wllltfÙ<af a mator ".hiel. e.. æg 6neeptlsa. See alea }.¡:II:lemàin II ~fte eSHf6S ill aeesFet&flee 7:ith BXCBPTI9I>¡' ""Ift 1ft . . ...1 e appf8?al sfth· . aut!nde ef blfildHigo in a eeiaU e Fife Clucf, Claoa I ""d II liquids ma ' Iflea'l'erateà iRla their àeo~R ,..J h àemgReà, ""pFo...eà ""à lioted eamaH ) B...otaF.à aèe\'e graunà IgmllaR sellfe.a anà meehæ!io';¡':" _agate eeBeems for ."pao,..e ta heat B.Fa .. hwh Iia\. features llielf liotmg, anà !,ra...isieRs mast IRIlge. Cama",eFa muot 10. inolalled 8R (R, a hatH [lfe reawla1>ee), oIte ,holl Ret e¡¡eeeà 559 II Be maàe fer laak and spill eeRlair.me à .wed. ill aeearElaRee ',:iIk àis""!'ra.... the inslallatiaB :: a::~ far Class I ar 1199 galleR' for C:;s £I~e~..: StlO" tanlœ aR "") !,ro!,eFly. ¡" "a eaaa ah ' eaRlaRlefa wh... Hi hio/her air' . !'la! a. The Chief R1!! ' otftietHfe. ' all stleh starage Be !'e_;;toà 'l:ilftHi 1 E() ~aR, thelf ~ae !,reaellts a Fisk ta life :r .et af 1lR)" Fe d . I 51 600B. a£ Îns#tatisft8.1 lš.3(j.HíQ FIa ~atJle aRd C8IHhastiåle Li u' . . . CaRtalRmeBt SectiaB 7991.8.2 S;1l1::Btr:r:~18~::t::~. D.8;Bage CaBt.al 8BII ScooRlla.," . ~rtIele 79 Flt1ß1fflaèle and Cams' .. SeesHålH) CeRtaÌrJReBt) 8f A fit 1:isHble LUjtuås SeetisR :~g 1 8 2 € City af C¡"'la Vista, is "OFeB~' ~~:.i;à (;I~able ...d Co"'¡'..ati¡'¡.' Ú'lU~:~~1 ~a~~~~Draif¡age CaRlfol anà 8 me tide a last seateBse t8 read as felle"'8' C, as It BfI}3lies in the t. 29 gallaR mrn_ a . . "" , f..laBlft1ftèle Hq1:Üà tanlæ ,ersfnH àe";lee is r6Et1:Üreà 88 all Class I 8£ II à . liB er-graanà a£ aÐ8Ve g£s1:illà 16,36.179 H azartl8Hs ~IateFials IdentiJieatio8 SigHs SeetioR gOOI 7 t.Fliela 89 H... à . 8meRllell. ",,!,lie, in llie City efa:l:~;i:1atoria¡' £eotiaR g()91.7 Id."¡¡HeslieR £i n .. a..à ,ectiaR ta remaiR llie aa¡' Ia!a ftercb)' """'Rdoà to reaà aa falla'''s' g "'¡¡,"f . .F!lele. 8() af llie DFC a, it m. as ill llie UfC: .. , a a er !,ranaleR' aRà e"e""ti~ns af >'~ ¿cp-s- '.risièle kaøtHà iàemifisaåsB signa as spesæed in tHe UnifeFffi Fire Cede 8tandtHd Ns. '79 3 BRan se plaeeà at e:atmBees ts lseati-eas ",'here hazaràsus materials are stsreà, eiispeHseà sr heHàleei. SigHS s1:tall Be pre. ided at Sf'eeiíis BBfnmees àesignateà èy tHe Chief. IàeBti-fis9tÏeB sigas sRall eeMeFffi te NFPA 791. 16.36.189 lIi~h Piled Cemllt1stible Sterage Pallet 8t8fage 8eeti88 819§ REhled. }~ as'." seeEÏeB t8 se fH:HHSSFsà aBà titled "SesåsR &195. SteIage efEffiptj' "reedeR ef Plaaåe Palletal1 ia Rereb) aàdeà te f.Fliel. 81 ("lIigli Pileà Combustible Steflige") efth. UFC, as it e~pli", iB the City efChula Vista, \'d1ieR SeetieB shall reas. as felle.. a: Seeåea &195 Steflig. ef£mpt;' WeedeR er Plastie Pallets, (aj 01:itdasr StsFage PaHets skallBe steres. eutsiàe efa Èniilàiftg sr in a aetashss. Btiilaæg ..Rsas.er pessible. Pallets shall Het Be staeli.:ed sleaer thaR 5 fest fram fhs l:l\i.ilàing. (b) IHaeer SteFage PaHet5 ~.~.1:ieR stered iÐ.àeefs shall B6 pretested ·;:ith [He sprinklers in asserdB.ftse 7lith þJPP A StæàtHà 231, 'FaBle 1 1.1.1 anless Beth 8fthe f811e7:æg BSHàiEÏaRs Me met: 1. PaHets tHe stared He RigRer thaB 6 feet. 2. £aek pallot pil. ef lie lIIore thllR 1 slselæ ohall Be sepllfliteà frem other pallet piles BY at least & feet sf 818M spaee af 25 feet ef eeB1ffisà#¡·. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nalllre and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Fire Code, 1998 Edition and the Unifonn Fire Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare. The reasons for such urgency are as foUows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Unifonn codes, including the Uniform Fire Code no later than July I, 1999 The enactment of this ordinance by July I, 1999 will ensure compliance with State mandates. SECTION IV. EFFECTIVE DATE, Pursuant to the provisions of Charter Section 311 (d) and 312( d)( 4), this ordinance shaU take effect and be in fuU force and effect on July I, 1999 if passed by at least four (4) affumative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to fonn by .k ?'5 ¿q-b .k- /. /f-f & J irn Hardiman Fire Chief .:rX &¿p-? I - - ORDINANCE NO. c2. ?8"3'~!1 AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 15.36 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE CALIFORNIA FIRE CODE, 1998 EDmON AND THE UNIFORM FIRE CODE, 1997 EDmON THE CITY COUNCn.. OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION L That Chapter 15.36 of the Chula Vista Municipal Code is hereby amended to read as follows; Chapter 15.36 FIRE CODES Sections: 15.36.010 C.alifornia Fire C.ode. 1998 Edition and Uniform Fire Code, ~ 1997 Edition, Adopted by reference. 1s.3B.020 Fift DepartmeBt } eeeos ell V.r.ateF Supply Seeti08 9912.1 amended. lS.3'-OJO W &teF SlIJIplies ed Fife Hydrtmts SeeBOR 9113. ~.2 _ded. lS.3'.0~0 PaFtallIe Fire EØiø.gaishers SeetioR 190'2.1 ameø.ded. 1S.3i-.9S9 Fife EItiBguishiø.g S)'stems Seeti8B 1993.1.1 ameø.deEL 1s.3B.080 Fife E:rtiøguishiBg Systems Seeti98 lQQa.2.2 ameødeå. 1s.3B.070 Fife EHiBgui-",.,g Systems SeetiOR 1003.111 Croup R1 lUlleøded. IS.3'-080 Fire E~-guishiø.g Sj'stems l\fOBÎt8FÎBg ell .Y8FlBS SeeBOR 1003.3 ameødeå. lë.36.009 Fife EúiBguiø"':-g S)"stems SåHld".! ReéfU:Í:l¿meBtI Tallie 1991 .\ ameBded. lUUOO Fire ..\l8AB 8)'ste8l9 Seeti.8B 1907 ..tailed tø add SeeâS8 1997.1.18 PlBBS ell Speeifieaâsø. lS.3U10 Fire .r\lanø. 8ystems SeedOR 1091.19.1.1 S~·steæ Refllliremeøts A-raded. lS.3B.120 Fire ...\larm &,stems 8eeti8B UUJ1.J.3.'.1l\loBÍt8RØg is 8:IBeøded. 1s.3U30 Ceaerøl S~· Pi æaøâ8Bs lBeiBePøt8~ O,eø BuFDiBg Mil e8BHBeFeÌØI. B8Fbeeue Pitt DiøeeBÛlHuæee Seeti8B 11911.! is 8:lBeBded. IS.3'.HO Te_ CM8J1ies ed 'T:eIBJloP8l'y l\Iem.IIF8Be StFuetuRS Tallie 3JOS f. LeeaûOR, ae1!rn _d ,artiÌBg: fer ~ eaB8,ies aøl! temJJ8F8l3' meaHIFftBe ....etures is amealleå. IS.3USO DispeBSÌRg !'Æ8'regFOUBd TøølES SeeBeB !]9].1.1 ameø.ded lUB.IBO Flammallle &. tembustilde liquids Spill CeBtF~ DF8ÍBage CeMF81 ed Seeo8dary CeBtaiBlBeBt Seetio8 7991.8.] SpiD Ce8kel is ameadef. lS.3U70 'D' ~-lØ"deB9 Materials IdeRtifieatie8 Sigøs 8&98 S991. "'! 8:lBeø.def. 15.3'-1110 High Piled eOlBbllstilJle Storage Pallet Storage SeetiOR 1I1OS added. 15.36.010 Uniform Fire Code, 1994 Edition, adopted by reference. There is hereby adopted by reference that cerIain document known and designated as the r"lifornia Fire ('.ode 1998 Edition and Unifonn Fire Code, and all Appendices,' -1-994 l221 Edition, as compiled and published by the International Fire Code Institute in cooperation with the International Conference of Building Officials and the Western Fire Chiefs Association, three (3) copies of which are on file in the office of the City Cletk Subject to such amendments as are herein contained, said document is hereby adopted prescribing regulations governing conditions hazardous to life and property from fire or explosion, and each and all such regulations, provisions, penalties, conditions and tenns of said Unifonn Fire Code are hereby referred to, ~t;f-/ adopted and made a part hereof as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended as set forth in this Chapter. lS.ð&.020 fiR DepaRBleøt} t!t!t!95 Reads Mul 'Vater Supply SeetiOB 99'2 ameBEled.. The first full I8IIIgfIII'iI ef SootieR 002,2,1 (ReE¡Hirod l.aaeGs) af !.1åe1e 9, PaIt HI af 1IIe UFC as it Bpplies iB èe City ef Chula Vista, is hereby BIB1Y"duå ta read as felle~-;s, all atker parts sf said. seweR t8 nr--¡- the S81B.e as in the UFC: Fire l.p¡!II"atn aaaeSG rra~s IIIIEi at 1IIe e ItÎoR af tile Fire CIHef, lire laneG shall be pra rideè iR aeeerf---9 wHIi 8eeliea 001 aøà 992.2 fer evefy foeüit:j·, bui:tàing ar pætieB af a huiktiRg hereafter eeBSt:Faeteå ar B1EP:eEl æts af -;.ithin the jwisåietiSR -;rkeø 8BY pameR ef the faailit~,' ar any pameR af 8R enteRBl -.1'811 aftke fifst stSFY efQ¡e hBÜàing is leæteEl mare tÐaB 1St;} feet (1572-G mm~ Ham fire apparatus assess as measmeà by 8B Bp¡Jf6¡eå Feuls areURà the enterier eftke 1niÏlåiRg or faeility. (See else Saetioo 002.3 fer perseRBei aeeess to builàißgs), lS.ð(¡.030 'NateF Supplies eEl Fire HydF8lds Seeti08 9QJ ameøded.. Seslioo 9\)3, U (ReE Hired ir-_11·"OasJ of !.male 9, PaIt HI, af tile UF(: as it applies te tile City af C.....1- Vi. is H._èy ameRåeel. t9 aEIå as feRe-.VB after the iiFSt ~h: For fire safety Eiur'.ng e_slioR, aIteo.at:oo. or demolitioo of a beiltIiRg, see l.rtiole X':'." (B) Fire hyEimRts, where reE¡uired iR all S1Jbdh~sians, ~~ esmpleues, SBHlfBereial àev-elepmeats, ete., shaH ee installed in an eperaele eeRàitiaB pFier te BB)" eeæeust:æle eenslflletÎBII materials beiBg plaead Ð:B the site. ¡è) Vllienever 8BY eembustible ~-"::-;æ is plaseå aR tke site af any -.-;ark is beiBg daRe sen1fB.ry ts tile pfs":isiaas ef tBis Bede, the C.mef may MEier the --~..I æateJiøl remaveEl freæ the site er the walk stewed by Batiee iB \vritiBg 5eJVed aR the aVl.!fier er agent, aBå aøy suæ perseB5 shall ferth,,;1k SSH1fJly V\'Ìdi said BeBee ..-':1 But:fteFRUel~' the ClH.efts presnEl. ls..a&.Q19 PeFtalJle Fife E:riBguisheFS Seeti9R 1992 &lBeBdell. 'The fellewiRg senteooe sIIaIl be added to tile end af SeslioR I\)Q2,I(CBIIeRI!¡ af l.rtiele 19 eftile UFC, as it applies iR tile Cit)' af Cftu1a YISta The IIIÌBÎIIlIIIII mted fire e"tingui.sher aoeeptable to 1IIe CÎ!j' af Chu1a Vista is 2AIQl3C." IS.3'.9§Q fiFe EDiBguishiøg Systems SeeâaR lOOa am...ded The fallo-.-Aøg seateRee sh.aR he addeå t8 the eREI sf Se6tÏsR 1993.1.1 (Ceneml) of ...~"1.iele 19 ef the UFC, 85 it applies iR t:àe City sf Chula Vista. .\11 lire e"tiRgui.!JIIiRg systems sI1aII be installed by a state liaeÐSeEi eoo_or. E"eoptioR: '.''ilea appre"1eEI 0,' tile Fire Chi~ R 3 8e6U JlIBeieG ma)' be e"_pted Ham !hio rßE UÎ.relBeRt ¡.¥ t"f.-2 18.3'-1160 Fire EÐiBgui!lhiB¡; S"IÆeIBS Sectioe 1003.1.2 8B1ended ~eeâeR 1003.2.2 (~'\R ee~lJìí)Beies ens. GFe R D'·' . by aåel:iøg tile feI1Ð~::4Bg seBtæee t9 the ead of ¿\melei9 fthlYl~ 3 ~ ~. U (OSSØfJBB6ies) 8IBeRded. e e , as It applies 1ß the City ef C1iæa "I.qsta. 6,. ,lR ~.~' !JuilEIiBg regaRIIess ef eeeupaB , slassifi ' bWlàiB.g IS HlBFe than 1Q feet af feftl' stefÎes aF m~Æ iB ke:SB af type af esnstfuetien, -.vhen snell 18.38.070 Fife EúiøguishiRg S~'*æs SeeBBR lOOa.2.8 Croup R1 &lBeødeEl. Seetiea 1003.2.8 (Greup R, Dbisieø 1 B66U ') f. A . ee CR. \G.sta, is hefe9y ameaàeà ta read as feYe,"~e~ : .: ~ele 19 ef tft,e LWC, as it applies in the City u ,. e e.m¡gpeœgæphlsoddedattheendeflW3,2.8: ..~ 8B ap¡3re led fire spriBkler system is Ie aireEI ~. th . . builEIiBgs seRSlmeted after July 1 1992: e ¡¡fm'Slens ef this seetien, !!!!ï aBd all åwelHng HBits, _~~1t 1:!e pre ièeè ..é ' 9a . : same ~repeFty, regaRIIess sf height aF RWRBer sf . .. 8B BfJfJfB. e :ii.Æ spriBlder system. 18.36.080 Fife EmøguishiBg Systems ~19RÎt8FÍRg ud ¿\lIlARS SemoB H¡OJ.J a-'C'8ded. Seeliea 1W3.3,1 (Where R<!quired) ef 'Ftiele ~O fth ~G' . hereBY œnæàeå t8 reaEI as feIl9\-,'s: . - a e as It applies ta the City sf Ch. Vi~ is uZhef . eEt A .. e æ¡¡ær ¿ æ "';ak'es esøH'elliBg t:Re h'8te s ¡ . f; .. flew !ñ-.4tefteS eD all sprinkler systems shaII~' t H?J3) ef a~eæaae S)3FHJ.làer systems ami water are;- e e eem~' ffi8mtsræ -;.~er=e the DHIIl13er sf spriBklers 1, Tweøty ef mere iB CF6Up I, rn"'isisBS 1 1 8ftà 1 2 0 . 2, Q¡¡ II IIIreà ' , . , cS1lpOÐ6Ies. e Hß aF mere m all ether Be-~n~sies. VaP/e m9f1iteriRg 8Bå wvater Rew aIamt aaå' . . . Rl:ltemaBeaIJy t:æ:Ð5H1itteà te 8R a Fm'Så tFe~ble SI~ shall Be ~säRetly åHfefeÐ.t and shall Be statieø as åefiReå 05' V.F.C. 8~ 19 e;R r ~a~ ~ate ~BR ar.J!~epFietmy meBiteång seR~ee ef the shief, sbaR seUfH! an n'Td~e'te11:ea appæveå 93 t£e BuiJdt-g ejReial. YMR the laeaksß5 may Rat sussed lOO miles H=e t£ '. ~ at a ee~ attæu1ml leeahan. These maBitafing eeBtlBets iBitiated after adepâe~ ef ~ ~ed:W Bf 1:he City Bf ChøIa '-'ism BBd RPfJly te BXCBPTIOÞI: UndergreHflEi l(e3' er Iæb "aI'" " , , pl:lBlie utility Beed Rat be meHitered. . .'es lR rœå\Æ5 !lanes pr6vuleà BY t:lie mUBisipal:Hy ar 18.3'.090 Fire EÐiBguiskiB¡; S,'stelB Sœnd' . S JUlie RetfUlFelBeBt5 Table 1001 ¿A_ ftlBended. The :megœy ef Cfeø¡¡ 2, liBŠer the cohlßl1I lab leEI gg .¡;¡ theUFCaslt8llPliestetheCityefClmIa'1ist ' h e, s6llpllBSj, efTable W01 f. ef f.rtiele 19 ef . ra; IS eÆ93 amended t8 FeaEI as fðYe-;:s: ' 2. OeOOpaBSies 3 steRes er more !Jilt less IIum 150 feet iB height, e¡¡sept Cfeli R, Di>.>isiea 3, ø ~ -f'-.3 .. 15.]'.11111 Fi . Fe ~Yanø. S,·stelR s, PløRs ud S . , ~eslieB 1QQ7,11 peelfie&lioBs 8eelioR 1 :'tMæ!'" ".",..:.. .':""". ,,- .. .".... -.... 7,1.1 ..ppüeoeilifj' ,1Sta1511eFeè;'8I"'erd d of ..male II) (Fire \I . e 10 aàà !he fellew'B . am¡ EyGIems) ef!h ""-.... .,. - -.. "'" II · "'" · · . ........ .'-' . ....-- "_.......... - Ielepllooe and' laliea. PIaIIs and . ~ ~ "~"" II . æi"""'1g and ¡¡eense _ear ef' spaeifisaliens "~_11' I e sal!HHtteEI fer ' aImm ' ",--"'- Ii 11I6 øde II RM81''S eBd ,_ __ ,OW..".........· ..... -' ':.~,.........- ~- -'" ---.:'.. - - ;;;:. '::"" .. -"''';:;;' - ,.....;. ~ '::"' eE UlpmeBt, deviaes and mat:æ~ :~. malOE! eBd æ~åi:.æ~ ~lIBeieti:' mug listmg. tale FHa Marshal 1!.Ji.l1 g Fire \ .. arm Syste 11101.1.9.1.1 amen:" System Requirement S, Croup R D' . . E:eGli ~ "'lSIOR 1 g ,.,.,.,.,.,.,."',!,,.2.9.11 ........ . . ......- ...... følle'l:s, all e!h~ .male I I) ef!h. UFe:; 1lj! R, DWisisB 1 ae6U ! . pre Asions ta _",_ ¡¡:,s It lI !!!ües in !he City ~esj, The fust fall same' a Chula ,~. !II1IIgfO Jh f S . -. . . *._. .- C ......--, . ,.-..- -..-.. ....--, . 1lj!ßHmeBt houses ae6Uf"-,;aS shall be :~ aIamt systems if¡ er _Fe slaÄes H ~ ar mare slaÄas ÎB h p,flMdaå ,,'ith a IIIIIBIIIII aeaenlfIBea with gaalia __...::......_.. ......._" ..._...... ..,.,2' . -"'. ' .. .,.......~ . -.... - ::.-.--_:': -. -.... . ..~._".... ,....."...- q "-"" -- ... ...:",;.,~".....":::':''''''''.:o.:-. -....."::: - .. ,. , bo pre :iåaå with enstrneleå after Mr I 1:2 systeæ lIB appre ¡eå fire aim' 00 the ....,... r ~..- '" . IFe ..\lanø. S . j stems SeedeR 1907 J SeslioR IQQ, ' .J.'.ll11oBÍtoÄR . amemleå te reel! J.3,é.l COIIemI af A ' g HI amedell-. asfellews: .lfI!ale II) aftheUFC ' n ' as It epplies iB lite Gi ' ,fheUeE¡uHeå 1Ij' tb ' fj ef S.ßuIa VISt ' " .... -' .....".. ...- "..- ntea s . HB system sh ~:OBdeå leeatielt ;;:e·1 ar ~ leeal aImm \1~ ~,ee lBaBÍtereå By lIB . eta eBd I sa eealíÐIIS IB' . e g>veG 1I"'ftiIaè1 epprEn'eå epll"Y Ie æalliteriBg 111) ,Bet e¡¡eeed 100 æiÌ e lIBEl ·.isual si ~ p¡a !ÅeI8Iy aoB!lBol5 IBltiateEl after edaptå. es fwm ,!he eiIy limi;:f ~ at ~ sÐII5IeBtIy ,....... . . "... ...... . "'" "..... eBeF8I Safet3· Seeti P£eeØä8&S lB' 88 1191.2.S »0 . etBeF8t8~ 0 lseeBBBHøøee . peR BumiB ". ..... BOO" "_...... .dC_..... . --'" .. -"', -... Chula Vista, is IIOB BumHtg and C9ItIIII':a ]>¡ooeautiaBS Saetioo III) ereby amended la reel! as ~ :wte6lle Pile af :\d'tie¡-~3 (DÎGeanl;,r'---e) f g . .... '" . . _, . "..""'.. . ."0. '''' ...,,;: . ........ . ..' . . ......... "'" ~ E81HØn!åa! lIIfe mei ef the iBeiRe I8G SIB.l<a emissians .aemlar ar, fireplaee use ' flltar ar fireplaee is å~ a:~ve ~e ae~ a~·=~d'ete1Y EliseantifllleEl . e eiuefle aeBStiMa a ~"~~ prapeRj' ar if!hif the ..Ia1lS eenditi e use en. y ¿'/(-¥' lU'.UO Ti!Rt8, (; . . BROP'" BRd T-empeFeFy Uemh pmaøg feF teDt~ eaBepies Mil te' FHe gtFuetu:res Tele 329! .. I. . Blp8~' memhFØØ.e sm en . ~- 8eaä8~ aeeess ød 'The Mini_ f" H HPeS IS ameRded: A. 6 è Ire ossess fEUid\1;~' -- . ..I..\.. .. eess an ParlEiBg far Teats .' ,,1 f as ske",'R in 1:ke thiI applies ÌB the City af CbuIIl \;~:tes : TempeR!!Y MembflHle ~a:.e~ ef ¡able 3205 .\ ("Lesaliea, eN ameRàeà t9 Fe8å as faRsVl . Hfes at.. mele 32 oCtile UFC as't 20 feet .'s,' I 20 feet 29 feet IS.3'-1S0 }'.h9'regFeHBd 'T:&BIi!I SeetiOB §]92.1.1 ameaded:. , Seœea S:W2. 1.1 ef hti ¡ StntIeas) ef!be UFC . -. a e. S2 EFlammah1e aruI Cemb' ., !be fellew'.ng B1¡aBfJ¿e~ It 8 lplies m the City ef C!two Vista is ':"~,LUlllld Mater Vehiale Fuel I1i5 !eÐ . . Fe ameøded ! E! I5IBg e Fea as {aRonlS aBŠ d..l' . II a'~ Class I and II .ds ÌB oblWB fre~ ObEWegFBHlIII tøalrs a,,' gFa~ tanks sBaII Bet be œ5 !enseå ia Se6!iea 5192,3' aæmeet tlleecr ;hc.a tanks ~ installed iasièe spe: the :e1 !IIB1t, ef 0 moler .,.càiale a ewmg ensepä&fl. See alse .. pp é ea esm:es ill aeeeJÙaBee 'with E u B11 ¡Ill' ' XŒP':rJOÞ!' "'i!ft!b . ,.. Ie 8 I Irm'81 fthe ' ?H!side sf bHilA'_gf' ia speekùl,e , FIre Ç' ¡jef, ClosG I IlBà II Ii aids ' ffiaerpefllled we ,.."'_ de. J h èerJIgflf!å, a ! 'lre led ØBè lisled fit . ~ be slered ablWB grBHllll . __ ..,-e __ ae--'- ' 19mÞ.~soH<6es and meehaaie~ A__~e aea,aefBS fer e'l IeSllre tn bee -, ..,-lIieII have rer"",s th8ll' IiœBg, aæ previsißBS _ ge, CentamBfS IBHSt be ÎlISIalled ! Em e heur fire resislBAse), ~~e sBaII Bet B1¡eeed SSO gall bef¡ made fer leak and spill aOF'-'-- ! ~ IISed, m aeeerèaaae wi!It "' ! 'Ire Ie the iar'-II-"ea ef sue: a:r ~Iass I er llQII gaIIeas fer ~s ~emga,1B sueII !IIB1ES ea aay prepBf!y, Ia Be ease shall h lI!øIBers whea m hi5IIter epifliea,!b' liE \lids. The Cl1isf æay stfu6!ure, , sua slemge be penai!:ted ',villlia lQII Ii _1ISe pre_IS a IÎ5k te life er eat sf aay resiàeatial er iasti!uûeaal lU'.l'O FI am.able BBd CeIBh..mlJle li . . ' CORt8ÏBlBe&t SeeBeR 1901.8.1 S:I=&t~~ ~Oe=¡ DFaiRllge Ce&tl'el BRd SeeoRE!ary . .mola 79 "'----ble ' SeeaaEku:)' C8BtftinmeBt ,,~ CemlnlSkèle l.H¡uiàs Seetiaø. 7 . City efChHla YIsta, is ~::~~;d ~~;;\e ODd CO~I;t;~~~ ~e:~~~ Ce~~1 and . II e a last seateøee te Æ8à as fell' , , as It R I IIies IB the 29 gall .. OM, .. eallllllHll1HllB'l'e iIIE!' , iIammahIe .d taaks, ,f5 I EMao IS rBE¡Hired ea all CIasG I er II HBà efgf9tH1El er BB£we gFsHBEI lS.J€.1;9 Øøz&Fdous ~kteFials Ideøtifieati88 SigHS SeeR 8( . f!i 1 OR 01. 7 ameaded-. . ¿ ~ e e &9 ll~_n~e\:JS ~iateri . ap?lie9 m the City of Chøla "is! ' ials SeetJeB 8Q11 L 7 lE!eatifiaati· , SIll!! seetiea Ie remaia !be . 18 ~ he.."y amended te Æ8à as f¡ 11 ~a SIgns ef ...malo 89 ef tile UFC . SBIBe as m !be UFC' e e.. s, all ether pre .si -1d ' as It . . Bm; Ð:I eneeptieB:S ef y ~,f - þ '.'isièle ha:zarà iàeetif.isatieR signs as Sfleeif.ieà in the URifeFR1 Fire Ceàe Staæ.àard Ne. '7~ 3 5&a.ll Be plaeeà at sat:FaBees te leeaâef15 ,,¡ftere ha:í:!aràeLi5 æateriala are stereà, àispef1ssà sr È.laf1àleà. Signs shall Be J3fB':iàeà at 6f3eeifie effinmees àesigRateà 13)" the Ckief. IàeHti:f.ieatisR sigas sliall seF1Ísffit te ÞWPA 791. 16.36.180 Higk Piled CBaHJHsti~le 8tarage Pallet Storage SeetioR 8106 added, A Re~": seefieR te Be ffiUHBereEl and fitled I1SeeâÐR 8105. Steæge ef EffiFI~Y 'ÀT eeEleR ef Plasâe Pallets II is her..) .dEled te .'d'âele 8 I ("IIi!;h Piled Cembuo¡¡¡'¡e Eter.!;e") ef the UFC, "' it "f'l'lies iB the City ef ChHl. Vista, '\.hieli SeetisR skallreaà a3 felle",ys: SeeâeR 8195 SteFBge ef Em!"ty WeedeR er Plastie p.lIets. (0) OH.tàs Sf Stefage p.llets sh.ll Be stered eutsiEle ef. B"ildiBg er iB . deta.hed Building vilieReyer 19sssièle. Pallets shall Het Be s1ael:eà slaser than 5 feet Prem the Bailài:Rg. (B) Iaàser Stef8.ge PaYets "::RSH stereà Înàeers shall Be pretesteà ,":Hh fife s}3FÎiÙ:leFs in aeeeràanee y;#ß ÞWP}. Sttl+làarà 231, Taàle ~ ~.1.1 UBless beth €If the felle ..ing esaèiâaBs are met: 1. Pallets are stereà He higher than !§ feet. 2. l2aek }3allet pile sf He mere than ~ staeks saaH Be s~&fateà HBm ether pallet piles BY at least 8 feet ef dear s}3ase Bf 25 Ïset sf esmmeàit')'. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the California Fire Code, 1998 Edition and the Unifonn Fire Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION ill. EFFECTIVE DATE, This ordinance will take effect and be in force on July I, 1999. Presented by Approved as to fonn by &:nn: ;K Fire Chief ftID ~/f-? ORDINANCE NO. ,) 7?r~/J AN URGENCY ORDINANCE OF THE CITY OF CHULA VISTA, ADOPTING A NEW CHAPTER 15.38 OF THE CHULA VISTA MUNICIPAL CODE ADOPTING THE URBAN-WILDLAND INTERFACE CODE, 1997 EDITION THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION I. That a new Chapter 15.38 of the Chula Vista Municipal Code is hereby added to read: Chapter 15.38 URBAN-WILDLAND INTERFACE CODE Sections: 15.38.010 Urban-Wildland Interface Code, 1997 Edition, adopted by reference. 15.38.030 Subsection <aj of Section 104.1 amended to Designate Board of Appeals and Advisors as Board of Appeals. 15.38.01 0 Urban-Wildland Interface Code, 1997 Edition, adopted by reference. There is hereby adopted by reference that certain document known and designated as the Urban- Wildland Interface Code, 1997 Edition as copyrighted by the International Fire Code Institute. Said document is hereby adopted as the Urban-Wildland Interface Code of the City of Chula Vista, California for the purpose of prescribing regulations mitigating the hazard to life and property from intrusion of frre from wildland frre exposures, frre exposures from adjacent structures and prevention of structure frres from spreading to wildland fuels, that certain code known as the Urban-Wildland Interface Code, 1997 Edition, are hereby referred to, adopted, and made a part hereof, as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended. 15.38.030 Subsection <aj of Section 104.1 amended to Designate Board of Appeals and Advisors as the Board of Appeals. Subsection (a) of Section 104,1 of the Urban-Wildland Interface Code, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors. Section 104.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the building official relative to the application and interpretations of this code, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy. The assistant director of planning and building and the frre marshal shall be ex-officio members who shall not be entitled to vote. The assistant director of planning and building shall act as secretary to the Board. The Board of Appeals and Advisors shall be appointed by the mayor and confirmed by the city council. The Board shall render all decisions and fmdings in writing to the assistant director of planning and building with a duplicate copy to the appellant. Appeals to the Board shall be processed in accordance with the provisions contained in Chapter 5 of this code or in accordance with such X &,$- / procedures as may be prescribed by the City Attorney of the City of Chula Vista, The decision of the Board is fmal. The Board of Appeals and Advisors shall recommend to the city council such new legislation deemed necessary to govern construction, use and occupancy of structures, in the City of Chula Vista. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the Urban-Wildland Interface Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. URGENCY FINDINGS. The City Council does hereby declare that this ordinance is necessary as an emergency measure in order to preserve the public peace, health, safety, and general welfare, The reasons for such urgency are as follows: the State of California has mandated that each jurisdiction within the State adopt the various 1997 Editions, Uniform codes, including the Urban-Wildland Interface Code no later than Iuly I, 1999 The enactment of this ordinance by Iuly I, 1999 will ensure compliance with State mandates. SECTION N, EFFECTIVE DATE. Pursuant to the provisions of Charter Section 3 II (d) and 312(d)(4), this ordinance shall take effect and be in full force and effect on July I, 1999 if passed by at least four (4) affrrmative votes of the City Council as an urgency measure. The regular ordinances will also be included as they presently are. Presented by Approved as to form by ~¡<, ~? fm Hardiman Fire Chief ~ tS-.2.. · - - ORDINANCE NO. J. ? 8'9--8 AN ORDINANCE OF TIIE CITY OF CHULA VISTA, ADOPTING A NEW CHAPTER 1538 OF TIIE CHULA VISTA MUNICIPAL CODE ADOPTING THE URBAN-WILDLAND lNTERF ACE CODE, 1997 EDmON TIIE CITY COUNCIL OF TIIE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. That a new Chapter 1538 of the Chula Vista Municipal Code is hereby added to read: Chapter 15.38 URBAN-WILDLAND INTERFACE CODE Sections: 15.38.010 Urban-Wildland Interlace Code, 1997 Edmon, adopted by reference. 15.38.030 Subsection (a) of Section 104.1 amended to Designate Board of Appeals and Advisors as Board of Appeals. 15.38.010 Urban-Wildland Interlace Code, 1997 Edmon, adopted by reference. There is hereby adopted by reference that certain document known and designated as the Urban- Wildland Interface Code, 1997 Edition as copyrighted by the International Fire Code Institute. Said document is hereby adopted as the Urban-Wildland Interface Code of the City of Chula Vista, California for the purpose of prescribing regulations mitigating the hazard to life and property from intrusion of fire from wildland fire exposures, fire exposures from adjacent structures and prevention of structure fires from spreading to wildland fuels, that certain code known as the Urban-Wildland Interface Code, 1997 Edition, are hereby referred to, adopted, and made a part hereçt; as though fully set forth herein, excepting such portions as are hereinafter deleted, modified or amended 15.38.030 Subsection (a) of Section 104.1 amended to Designate Board of Appeals and Advisors as the Board of Appeals. Subsection (a) of Section 104.l of the Urban-Wildland Interface Code, and the title precedent thereto, as it applies in Chula Vista, is hereby amended to read as follows: Board of Appeals and Advisors, Section 104,1 General. In order to hear and decide appeals of orders, decisions or detenninations made by the building official relative to the application and interpretations of this code, there is hereby established a Board of Appeals and Advisors consisting of seven members who are qualified by experience and training to pass upon matters pertaining to building construction, use and occupancy. The assistant director of platming and building and the fire marshal shall be ex-officio members who shall not be entitled to vote, The assistant director of p1amùng and building shall act as secretary to the Board. The Board of Appeals and Advisors shall be appointed by the mayor and confirmed by the city council. The Board shall render all decisions and findings in Writing to the assistant director of platming and building with a duplicate copy to the appellant Appeals to the Board shall be processed in accordance with the provisions contained in Chapter 5 of this code or in accordance with such "vr &7..../ -----.-----."----. -- procedures as may be prescribed by the City Attorney of the City of Chula Vista, The decision of the Board is fmaL The Board of Appeals and Advisors shall recommend to the city council such new legislation deemed necessary to govern construction, use and occupancy of structures, in the City of Chula Vista. SECTION II. FINDINGS AND DECLARATION The City Council of the City of Chula Vista specifically and expressly fmds and declares that the nature and uniqueness of the climate, terrain, and location does necessitate and demand specific amendments to the Urban-Wildland Interface Code, 1997 Edition which are noted in the Chula Vista Municipal Code and restated in this Ordinance. SECTION III. EFFECTIVE DATE- This ordinance will take effect and be in force on July I, 1999. Presented by Approved as to form by ~,,/ - Jim H¡¡(diman Fire Chief ~ ~;r--..< - · COUNCIL AGENDA STATEMENT Item No. 7 Meeting Date: 5/25/99 ITEM TITLE: Ordinance ). ?f~nding various Chapters of the Chula Vista Municipal Code relating to changes in due to ~ta1 reorganization, SUBMITTED BY, Di,",'" ofPI~"i"g mill ~ REVIEWED BY: City Manage~ ~ ./' (4/5ths Vote: Yes _ NO---L) In July 1998, the Department of Planning and the Department of Building & Housing were reorganized, The reorganization removed the titles of Planning Director and Director of Building and Housing and replaced it with Director of Planning and Building, As a result, several Municipal Code sections must be changed to reflect the title changes. RECOMMENDATION: That the City Council approve the various amendments to the Chula Vista Municipal Code relating to changes in title designation due to departmental reorganization. BOARD/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: In July, 1998, the Department of Planning and the Department of Building and Housing were consolidated to form the Department of Planning and Building, Many sections of the Municipal Code refer to either the Planning Director, the Director of Building and Housing, or the Assistant Director of Building and Housing, three positions which were renamed due to the reorganization, Therefore, it is necessary to amend those sections of the Municipal Code containing such references to accurately reflect the positions of Director of Planning and Building, Assistant Director of Planning and Building, and the designated building official. FISCAL IMPACT: None h: \shared\attomey\agenda.rev 7--/ THIS PAGE BLwK 7--,2 ORDINANCE NO. J. ? 9¿J AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF THE CHULA VISTA MUNICIPAL CODE RELATING TO TITLE DESIGNATIONS DUE TO DEPARTMENTAL REORGANIZATION The City Council of the City of Chula Vista does hereby ordain as follows: That the following sections of the Chula Vista Municipal Code are hereby amended to read: 1. 04.010 Definitions and rules of construction. In the construction of this code and of all ordinances of the city, the following rules shall be observed, unless such construction would be inconsistent with the manifest intent of the city council or the context clearly requires otherwise: tlAbatement" means an act or combination of actions designed to correct a nuisance. Abatement includes, but is not limited to: removal, demolition or repair of structures; removal of weeds f rubbish and debris; reconstruction of structures to code; restoration of drainage ways or courses, grading or regrading and filling of illegally graded or developed land; revegetation; vacating of illegal or non-conforming structures; removing barriers improperly blocking off public access; removal of encroaching structures onto public property¡ and other action which is reasonable related to the correction or mitigation of nuisances under this code or state law¡ nCityl1 or "this city" means and shall be construed as if followed by the words "of Chula Vista¡1I "City Manager" means an officer appointed by the city council as the city manager, and includes those officers and employees he or she designates to perform certain functions. The term "city manager II includes a director, as defined herein, except in those proceedings where an appeal to the city manager is taken from the order of a director¡ "Code" or I1this code" means the municipal code of the City of Chula Vista, California¡ II Code Enforcement Officer" means a person, other than a police officer, designated by the city manager or a director, to enforce violations of the municipal code. A code enforcement officer is authorized to issue notices of violation and administrative citations pursuant to Chapter 1.41. A code enforcement officer is authorized to issue misdemeanor citations or to arrest a person without a warrant for a misdemeanor committed in his or her presence which is a violation of state law or an ordinance which the code enforcement officer has a duty to enforce. A code enforcement officer may exercise all powers of arrest pursuant to California Penal Code §836,S, A code enforcement officer is not a peace officer within the definition of Penal Code Sections 830 through 832.8; "Computation of time." The time in which any act provided by law is to be I ?-;J done is computed by excluding the first day and including the last, unless the last day is a legal holiday and then it is also excluded; I1Council!l whenever used in this code means the city council of the city; l1Countyrr or l1this county!! means the county of San Diego; II Dayl1 means the period of time between any midnight and the midnight following; IIDaytime" and "nighttime. II 11 Day time " means the period of time between sunrise and sunset. "Nighttime" means the period of time between sunset and sunrise; IIDirector" means the chief of police, fire chief, city engineer, j3laR>ÜR!j' àirceter, à.iL'êetsr sf Bl:lilàÜ'i§ aFlEÌ Ì:iel:lsiFl§ director of clannina and buildina, director of finance, director of parks and recreation, director of public works, director of community development and the employees designated by them, or assigned by job function to perform code enforcement functions and duties, It also includes the county health officer or director of public health for public health and sanitation; "Gender." The masculine gender includes the feminine and neuter; !I In the cityrr means and includes all territory over which the city now has, or shall hereafter acquire jurisdiction for the exercise of its police powers or other regulatory powers; I1Joint authority. II All words giving a joint authority to three or more persons or officers shall be construed as giving such authority to a majority of such persons or officers; IIMonth" means a calendar month; "Notice" means a written document which informs a person of the time, date and place for a hearing, the nature of a penalty or corrective action required of that person, and the Municipal Code section (s) applicable to the proceeding. service of notice is covered in Section 1.40.030; "Nuisance II is as defined under California civil Code §3480, and includes a condition upon or use of real property within Chula Vista that violates the municipal code or state law. It may also include dilapidation or disrepair of structures; the maintenance of a structure in which illegal drug, gambling or prostitution activity occurs; or, a structure on private property which encroaches into public property; "Number. II The singular number includes the plural and the plural the singular; "Oath" means and includes an affirmation; "Officers, departments, etc. " Officers, departments, boards, commissions and employees referred to in this code shall mean officers, departments, boards, commissions and employees of the city, unless the context clearly indicates otherwise; "Official time." Whenever certain hours are named in this code, they ,2- 7-{ shall mean Pacific Standard Time or Daylight Saving Time, as may be in current use in the city; nOr, I! !land. II nOr" may be read !land," and "and" may be read "or, II if the sense requires it; !lOwner/1I applied to a building or land, means and includes any part owner, joint owner, tenant in common, tenant in partnership, joint tenant or tenant by the entirety of the whole or of a part of such building or land; "Person" means and includes any person, firm, association, organization, partnership, business trust, corporation or company; IIpersonal property" means and includes every species of property, except real property, as defined in this section; "precedingrr and "following. It The words IIprecedingl1 and IIfollowing" mean next before and next after, respectivelYi "Process" means and includes a writ or summons issued in the course of judicial proceedings of either a civil or criminal nature; l1Property" means and includes real and personal property; "Real property" means and includes land, improvements and structures on landl tenements and hereditaments; l1Responsible Party!! means individually and collectively: the owner{s) of real property upon which a violation of this code or state law exists; or, a tenant or occupant in possession, licensee or any other person who has caused, created I or continues to allow a condition to occur or exist upon real property constituting a violation of this code or state law. A l1Responsible Party!! can be a natural person or a corporation; "Shall" and "may. 11 II Shall II is mandatory and "may" is permissive¡ "Signature or subscription by mark. II l1Signaturel1 or "subscription" includes a mark when the signer or subscriber cannot write, such signerts or subscriberts name being written near the mark by a witness who writes his own name near the signer's or subscriber's name¡ but a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto; "State" or "this state" shall be construed to mean the state of California¡ l1Tenant or occupant," applied to a building or landl includes any person holding a written or an oral lease of, or who occupies the whole or a part of, such building or land, either alone or with others; I1Tenses.tt The present tense includes the past and future tenses, and the future includes the present; "Week. II A week consists of seven consecutive days; I1Writing" means and includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, statement or record is required or authorized by this codel it shall be made in writing in the English language, unless it is expressly provided otherwise; 7~ß 2S "Yearn means a calendar year, except where otherwise provided. (Ord 2718 §1 (part), 1998; prior code §1.2), 2.05.010 Unclassified positions established. In addition to those unclassified positions specifically delineated in Section 500 of the charter of the city, there are established the unclassified positions entitled deputy city manager, assistant to the city manager, deputy city clerk, assistant fire chief, assistant chief of police, assistaBt àirc8tor sf plaBBiR~, assistant director of finance, assistant director of human resources, assistant àireetsr sf e~ilàiB~ aBà ke~8iR~, director of Dlannina and buildina, city engineer, director of management services and information services, redevelopment coordinator, housing coordinator, transit coordinator, assistant director of community development, deputy director of public works/city engineer, public information coordinator, traffic engineer, deputy director of public works/operations, budget manager, revenue manager, assistant director of management services and information services, assistant library director, police captain, special planning projects manager, assistant to the mayor and council, border environmental business cluster manager and administrative assistant/office manager and California border alliance group executive director, California border alliance group analyst and California border alliance group secretary. (Ord 2721 §1, 1998, Ord 2699 §2, 1997, Ord 2685 §1, 1996, Ord 2640 §1, 1995; Ord 2637 §1, 1995, Ord 2619 §2, 1994, Ord 2540 §1, 1993; Ord 2497 §1, 1992; Ord 2480 §1, 1991, Ord 2450 §1, 1991; Ord 2272 §1, 1988, Ord 2236 §1, 1987; Ord 2121, 1985; Ord 1907 §1, 1980, Ord 1719 §1, 1976, Ord 1636 §1, 1975), 2.26.020 Purpose and Intent. It is the purpose and intent of the city council in establishing the Board of Appeals and Advisors to create an advisory body which would serve as a resource to advise and make recommendations to the city council, the city manager, the àireeter 6f euilàiR~ aaà k8usiR~ buildina official and the fire chief on matters relating to building construction. Another purpose of the Board is to act as administrative appellate review of decisions of such officers to abate public nuisances arising out of application of Uniform Codes, (Ord 2439 §2 (part), 1991; Ord 1465 §1, 1973, Ord 1235 §1 (part), 1969, Ord 1002 §1 (part), 1966, prior code §2.91(a)), 2.26.030 Functions and Duties. The function and duties of the Board of Appeals and Advisors shall be as follows: A. Create a forum for city-wide discussions, research, and analysis of critical issues of building construction, including plumbing, mechanical and electrical installations. B, Where authorized by a Uniform Code adopted by the city to do so, investigate and advise as to the suitability of alternate materials, types of construction, and interpretation of said adopted Uniform Code. C. Conduct public hearings and recommend to the city council, the passage of new legislation pertaining to the design and construction of buildings. D. Act as an alternative administrative appellate body, at the option of the ci ty manager, to hear appeals relating to determinations by the city K /,t- manager, code enforcement officer, fire chief or àirEetaE af B~ilàiR~ aRà ka~8iR§ buildinq official, pursuant to city-adopted Uniform Codes, that conditions or circumstances are public nuisances and should be abated, Such codes include, but are not limited to the Uniform Building, Uniform Mechanical, Uniform Fire, Uniform Housing, uniform Plumbing and National Electrical Codes as adopted from time to time by the city council. Hearings of the Board shall be conducted in accordance with the procedures set forth in such Uniform Codes and particularly the Uniform Code for the Abatement of Dangerous buildings or the provisions of Chapters 1. 30 and 1.40, the decision of the Board shall be final, (Ord 2718 §1 (part) , 1998; Ord 2439 §2 (part) , 1991; Ord 1235 §1 (part) , 1969; Ord 1002 §1 (part) , 1966; prior code §2, 91 (b) ) . 2.27.020 Definition. The following terms shall be interpreted and construed as set forth herein: A, IIDisabled" shall be as defined in the 1990 Americans with Disabilities Act. B. IIBuilding Official" shall be the àirEetsE af Bl:iilàiR§ aRà heusiE.~ assistant director of Dlannina and buildina. (Ord 2605 §1 (part) , 1994) , 5.36.130 License or permit-Issuance prerequisites-Appeal of denial- Transferability. A, Any applicant for a permit pursuant to these provisions shall present to the police department the application containing the aforementioned and described information. The chief of police shall have a reasonable time in which to investigate the application and the background of the applicant, Based on such investigation, the chief of police, or his representative I shall render a recommendation as to the approval or denial of the permit to the city manager or his designee. B, The àe~ar~ffieRt af el:iilàiR~ aRà keusiR~ deDartment of Dlannina and buildina, the fire department and the county health officer shall inspect the premises proposed to be devoted to the massage establishment and shall make separate recommendations to the city manager or designee concerning compliance with the foregoing provisions. C. The city manager, or his designee, after receiving the aforementioned and described recommendations I shall grant a permit to the establishment if all requirements for a massage establishment described herein are met I and shall issue a permit to all persons who have applied to perform massage services unless it appears that any such person has deliberately falsified the application or unless it appears that the record of any such person reveals a conviction of a felony or a crime of moral turpitude. The city manager or designee may recommend to the city council that an individual business establishment shall be subject to a public hearing and council approval, when in his judgment any such business establishment has an effect upon the public health, safety or welfare of the community. D, Any person denied a permit by the city manager or his designee pursuant to these provisions shall be notified pursuant to Chapter 1.40 regarding an appeal why the permit should be granted, The decision pursuant to Chapter 1,40 shall be final upon the applicant, Also, the city council may elect on its own motion to review any determination of the city manager granting .& ?...-? or denying a permit, in which case, that decision shall then constitute the exhaustion of administrative remedy. E, All permits issued hereunder are nontransferable; provided however, a change of location of a massage establishment may be permitted pursuant to the provisions herein. (Ord 2718 §1 (part) 1998; Ord 1312 §2 (part) , 1970; prior code §9,42), 6.08.080 Kennels, catteries and pet shops-Pe~it prerequisites. No health permit for the activities included in this chapter shall be valid unless it shall have been certified by the ~laRRiR§ àir~e~er director of Dlannina and buildina as not being in conflict with ordinances and local regulations concerning planning and zoning. (Ord 774 §1 (part) , 1961; prior code §4,8 (G)) , 9.40.030 Application for conversion or discontinuance of mobilehame or trailer park. A, Application for Conversion or Discontinuance. Prior to the approval of any rezoning, subdivision map, or the issuance of any permit including a building permit, which would allow the use of any properties presently or hereinafter utilized for mobilehome or trailer parks to be used for any purpose other than a mobilehome or trailer park, or prior to the cessation of use of all or any part of a mobilehome or trailer park I an application to convert from such use or to discontinue must be filed with the community development department. The requirements of this section shall be applicable whether or not the mobilehome or trailer park is: L Located within an exclusive mobilehome park zone; 2, Located within a zone subject to conditional use permit; or 3, Is entitled to be used as a mobilehome or trailer park based on nonconforming rights. B, Application Requirements. The following information or documentation shall constitute application for conversion or discontinuance of an existing mobilehome or trailer park, L A relocation plan which shall make adequate provision for the relocation of the mobilehome or trailer owner/occupant who will be displaced by the discontinuance of the use of the property for a mobilehome or trailer park; 2, A profile of the existing park, including: a. Number of spaces, b. Names and addresses of all mobilehome or trailer owner/occupants, c, Date of manufacture of each home, ¡# 7--;;/ d, Replacement value of each home e. Estimated cost of relocation of each home L Length of tenancy of each mobilehome or trailer owner/occupant I g, Estimated income and age of each mobilehome or trailer owner/occupant; 3, A timetable for vacating the existing park; 4- Evidence satisfactory to the community development director that agreements satisfying the relocation assistance requirements of this chapter have been offered to eligible mobilehome or trailer owner/occupants. Such evidence may include, but is not limited to the following: a, Written agreements to relocate mobilehomes or trailers owned by low and moderate income mobilehome or trailer owner/occupants, b, Assistance for low and moderate income mobilehome or trailer owner/occupants in the form of payment by the park owner of seventy-five percent, up to a maximum of $3,000, of the cost of relocating the mobilehome or trailer to another mobilehome or trailer park within one hundred miles; 5, Evidence that the park owner has informed all mobilehome or trailer owner/occupants in writing of alternative sites available to them; 6, Evidence that the park owner has agreed to purchase those homes of low and moderate income mobilehome or trailer owner/occupants which are determined to be not relocatable due to age and/or condition. Such purchases shall be based on standard insurance replacement criteria; 7, Evidence that the displaced residents have been provided right of first refusal to purchase, lease or rent any dwelling units or mobilehome or trailer spaces which may be built on the subject property; B, A narrative summary of planned new use of property to be converted or reason for nonuse; 9, As an alternative to subsection B4b of this section, evidence that the park owner has given the mobilehome or trailer owner/occupants a three-year notice to vacate, said notice being pursuant to Section 79B,56(f) of the Civil Code, If such a three-year notice is given, the applicant must assist all low and moderate income displaced mobilehome or trailer owner/occupants in accordance with the following schedule, If Mobi1ehome or Trailer Owner/Occupant Portion of Up to a Vacates Before Expenses Paid MaJd= End Of bv Owner of First year 75% $3,000 Second year 50% $2,000 Third year 25% $1,000 ;r ?~7 C, Submittal to and Decision of the Community Development Director, All of the above application information shall be submitted to the community development director. The community development director shall make his decision in the following manner: 1, If the community development director determines that the application is complete and conforms with all regulations, policies and guidelines, and that the relocation plan or other commitments by the park owner mitigate the impact of conversion or discontinuance on the health, safety and general welfare of persons residing in the mobilehome or trailer park, he shall grant the application for conversion. 2. If the community development director determines that the application is not complete or it does not conform with all regulations, policies and guidelines, or that the relocation plan or other commitments by the park owner do not mitigate the impact of conversion or discontinuance on the health, safety or general welfare of persons residing in the mobilehome or trailer park I he shall deny the application for conversion. 3. The community development director may establish the date on which the resolution of conversion or discontinuance will become effective, Such date shall not be more than three years from the date of decision of the community development director, or such earlier date as the applicant has complied with the provisions of an approved relocation plan and submitted evidence thereof to the community development director. 4. In granting or denying the application for conversion or discontinuance of the mobilehome or trailer park, the community development director shall make a written finding in rendering the decision and shall fully set forth wherein the facts and circumstances fulfill or fail to fulfill the requirements set forth herein. 5. A copy of this written finding of facts shall be filed with the city clerk, t.he I'laF.l.RiR~ :Ði:n:eter and the àirE::.E!tsr sf D\:iilàil"l~ aF.l.à IIs\:1E1iR§f director of Plannina and Buildina, and shall be mailed to the applicant and to the mobilehome or trailer owner/occupants of the mobilehome or trailer park. 6. The decision of the community development director shall be final on the fifteenth day following the mailing of the decision to the applicant and the mobilehome or trailer owner/occupants required in Section C. 51 except when appeal is taken to the city council as provided in subsection D of this section. D. Appeal from the Decision from the Community Development Director. 1. An appeal from the decision of the community development director on an application for conversion or discontinuance of a mobilehome or trailer park may be taken to the city council within fifteen days following the decision of the community development director. The appeal may be taken by the applicant I any governmental body or agency I any owner of real property located within the city or any resident of the city. The appeal shall be in writing on a prescribed form and filed with the city clerk, The appeal shall specify wherein there was an error in the decision of the community development director. If an appeal is filed within the time specified, it shall automatically stay proceedings in the matter until a determination is made by the city council. 7-/0 ,K ___~..'__~'M___. 2. Upon the filing of the appeal, the community development director shall set the matter for public hearing before the city council at the earliest practicable date. The public hearing shall be noticed and held in accordance with the provisions of this code. Notice of time and place and purpose of such hearing shall be given as follows: a. By at least one publication in the official newspaper of the city, not less than ten days prior to the date of the hearing; b, By mailing notices at least ten days prior to the date of such hearing to the mobilehome or trailer park owner and to all mobilehome or trailer owner/occupants of the mobilehome or trailer park. 3, Upon the hearing of the appeal, the city council may by resolution affirm, reverse or modify in whole or in part any determination of the community development director, subject to the same limitations as are placed upon the community development director by law and the provisions of this code. The resolution must contain a finding of fact showing wherein the proposed development meets or fails to meet the requirements herein. 4, The decision of the city council shall be final unless appealed to a court of competent jurisdiction. E. Waiver. The community development director may recommend to the city council the acceptance of other mitigating actions by the park owner in lieu of the specific provisions herein if extreme economic hardship would result for the park owner, or if other proposed mitigating actions have recommending benefit. F. Notification Requirements. In addition to any notification requirements under the California Civil Code, the following notification requirements shall apply to any application for conversion or discontinuance of mobilehome or trailer park use: 1. A minimum of ten calendar days prior to an applicant filing an application for conversion or discontinuance of the mobilehome or trailer park I the applicant shall give written notice to each mobilehome or trailer owner/occupant of the mobilehome or trailer park of the proposed change, Such notice shall be subject to the prior approval of the community development director. 2. No public hearing required hereunder to consider an application for conversion or discontinuance of a mobilehome or trailer park use shall be held unless and until the applicant submits to the community development director an affidavit approved as to form by the city attorney declaring that the applicant has given the notice required by this provision. G, Penalty, Violation of any provision of this chapter by the owners of mobilehome or trailer parks shall be deemed to be a misdemeanor subject to the penalties as established by state law for misdemeanors. In addition thereto, any mobilehome or trailer owner/occupant in a mobilehome or trailer park where conversion to other uses or discontinuance has been sought or accomplished, and in which violations of the terms and provisions of this fr ?---/j chapter have occurred, may seek civil remedies for damages in accordance with the relocation provisions contained herein no later than one year from the date of lease cancellation or eviction from the mobilehome or trailer park. (Ord 2368 §2, 1990; Ord 2299 §1, 1989), 10.84.035 Citetion authority. The e~ildiR~ aRà heusifl§ àiree~sE Dlannina and buildina director, code enforcement officers and other employees designated by the e~ilàiR§ aad hetlsifl~ àiIeetsE Dlannina and buildina director shall have the authority to enforce Chapters 10,52, 10,84 and 19,62 of the Chula Vista Municipal Code by issuing written notice of the violation, (Ord 2670 §1, 1996; Ord 2176 §4 (part), 1986), 12.48.040 Exiting buildings-Occupant duty to obtain number. It shall be the duty of the lessee, occupant, or owner of any existing building to obtain the proper building number from the àiIeetsE sf e~ildia§ aaà floasiR§ director of Dlannina and buildina iR6~ÐetieR and to place this number on said building within thirty days from July 18, 1969, (Ord 1205 §2 (part), 1969; prior code §27,106(A) (1», 12.48.050 New buildings-Occupant to place number on building when. It shall be the duty of the lessee, occupant or owner of any new building to place the number assigned by the direSESY sf èuilàiR§ aaà hStlsifl§ director of Dlannina and buildina iaspeseisR on said building on or before the day final inspection is made by the building inspector, (Ord 1205 §2 (part), 1969; prior code §27,l06(A) (2», 12.48.060 Enforcement-Notice required-Occupant compliance required. A. If the ài~estsL sf e~ilàiR§ aaà k8~8iR§ director of Dlannina and buildina iaspeetisR finds any building upon which the proper number has not been properly placed as required by this chapter, he may order the applicant, lessee, occupant or owner to obtain and properly place such number within ten days, B. The posting of a notice upon the entrance door of such building shall meet the requirements of this section for legal service of such notice or order. C. It shall be the duty of the lessee, occupant and/or owner of said building to comply with said order. (Ord 1205 §2 (part), 1969; prior code §27,106(B»), 13.04.010 Definition. Unless otherwise defined herein, terms relating to water and wastewater shall be as adopted in the latest edition of Standard Methods for the Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works A~sociation and the Water Pollution Control Federation. The meaning of other various terms as used in this ordinance shall be as follows: A. rrAgent" shall mean any person duly authorized by the city to perform JfY 7" / :2.. specific work upon sewerage facilities under permit or under contract. B. "Applicant II shall mean a person, partnership, entity, firm, association, corporation, or public agency applying for connection to a public sewer, approval of plans to construct or to modify wastewater facilities, or for a permit for industrial wastewater discharge. C. "Building" shall mean a structure containing one or more fixtures and separated from any other structure. D. "Building sewer" shall mean a privately maintained sewer which extends across private property from a building to a sewer lateral, public sewer, or private sewer. E. "City manager" shall mean the city manager of the City of Chula Vista. F. "Director" shall mean the director of public works or designee. G. "Dischargerl1 shall mean any person who discharges or causes a discharge of wastewater directly or indirectly into the cityrs wastewater system or facilities. H. l1Domestic wastewater" shall mean the liquid and waterborne wastes derived from the ordinary living processes in a dwelling unit, said wastes being of such character as to permit satisfactory disposal, without special treatment, into a public sewer. I. 11 Fixture " shall mean any plumbing or wastewater outlet requiring a trap or vent. J. "Food establishment" shall mean a food establishment as defined in Health and Safety Code section 27520, as it may be amended from time to time. K. "Grease pretreatment device" shall mean a device conforming to the Uniform Plumbing Code requirements for grease interceptors and/or grease traps approved by the director and the àirceter ef e~ilàiR§ aaà fle~sifl§ director of Dlannina and buildina and designed to remove grease from wastewater before it enters the building sewer. L. HIndustrial wastewaterll shall mean all wastewater, including all wastewater from any producing, manufacturing, processing, institutional, commercial, service, agricultural, or other operation, including food establishments, which are required to be controlled by federal, State of California or local regulations or which interfere with the operation and maintenance of the wastewater system or facilities. These exclude domestic wastewater, but may also include wastes of human origin similar to domestic wastewater. M. IIMass emission rate II shall mean the weight of a specific material discharged to the public sewer during a given time interval. N. "parcell1 shall mean a piece of land as described or shown upon current records of the county recorder of San Diego County. O. "Person" shall mean any individual, partnership, entity, firm, association, corporation or public agency including the State of California and the united States of America. P. "Public sewer" shall mean a sewer owned and operated by the city which is tributary to treatment or reclamation facilities operated or utilized by the City of Chula vista, Q. I1private sewer" shall mean a privately maintained sewer constructed from ;-r 7---/5 its connection with a public sewer across public and/or private property to provide sewer service to two or more individual parcels of record, and for which a written agreement pursuant to Section 13.08.090 has been filed with the director. R. I1Sewagett shall have the same meaning as "wastewaterH. s. "Sewer connection" shall mean the physical facilities involved and/or the act of construction of a viable juncture between a building sewer or private sewer, and sewer lateral or the public sewer system. T. "Sewer lateral" shall mean a four or six inch diameter privately maintained sewer constructed from its connection with a public sewer across public property to the boundary of such public property so as to provide sewer service to buildings or structures situated upon an individual parcel of record. u. "Sewer servicetr shall mean the service and benefits derived through utilization of the public sewer system. v. I1Standard methods" shall mean procedures described in the current edition of Standard Methods for the Examination of Water and Wastewater, as published by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation. W. nSuspended solids" shall mean any insoluble material contained as a component of wastewater and capable of separation from the liquid portion of said wastewater by laboratory filtration as determined by the appropriate testing procedure and standard methods, x. trTreatment facilities II shall mean facilities owned or utilized by the city in the treatment of wastewater or for the reclamation of wastewater. Y. I1Waste" shall mean any and all waste substances, liquid, solid, gaseous, or radioactive, associated with human habitation, or of human or animal origin, or from any producing, manufacturing, processing, institutional, commercial, service, agricultural, food preparation or other operation. z. nWastewaterl1 shall mean waste and water, whether treated or untreated, discharged directly or indirectly into or permitted to enter a public sewer. "Wastewater" includes both domestic and industrial wastewater. AA. "Wastewater constituents and characteristicsl1 shall mean the individual chemical, physical, bacteriological or radiological parameters, including volume, flow rate and such other parameters that define, classify or measure the quality and quantity of wastewater. BB. l1Wastewater system or facilities 11 shall mean any and all public facilities used by the city for collecting, conveying, pumping, treating, disposing and reclaiming wastewater. (Ord 2466 §7 (part), 1991), 13.08.110 Occupancy of Premises with Unapproved Sewer Lateral. It is unlawful for any person to use or occupy any building until the sewer lateral and building sewer serving such building has been inspected and approved by the director and the ài:n::et8:E' sf 1s~ilàiR§ aaà fl0usifl§ buildina official, or their duly authorized representatives, and a certificate of occupancy or final inspection approval has been issued. (Ord 2466 §7 (part), 1991) , ~ /,/vj 14.20.030 Definitions. When used in this chapter, the following terms shall have the meanings ascribed to them in this section: A. "Basin Plan" shall mean the "Comprehensive Water Quality Control Plan for the San Diego Basin!! adopted by the Regional Water Quality Control Board, San Diego Region (July 1975) and approved by the State Water Resources Control Board, together with subsequent amendments. B, IIBest Management Practices (BMPs) " shall mean schedules of activities, prohibitions of practices, general good housekeeping practices, pollution prevention and educational practices, maintenance procedures, and other management practices to prevent or reduce to the maximum extent practicable, the discharge of pollutants directly or indirectly to waters of the United States, BMPs also include treatment requirements, operating procedures I and practices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw materials storage. C, "Building Permit" shall mean a permit issued by the àiEee~er sf Ð~ilàifl§ aaà ae~sia~ buildinq official pursuant to Chapter 15,20, D, rrCalifornia Ocean Planrr shall mean the rrCalifornia Ocean Plan, Water Quality Control Plan for Ocean Waters of Californian adopted by the State Water Resources Control Board in September 1991, and any subsequent amendments. E, nClean Water Actrr shall mean the Federal Water Pollution Control Act enacted by Public Law 92 -500, as amended by Public Laws 95-217, 95-576, 96-483, and 95-117 (33 USCA Section 1251 et seq,) , and any subsequent amendments. F, rrCounty Health Officer" shall mean the health officer of the County of San Diego Department of Public Health or designee, G, IIDevelopmentll shall mean: L The placement or erection of any solid material or structure on land I in water, or under water; 2, The discharge or disposal of any dredged material or of any gaseous, liquid, solid, or thermal waste; 3, The grading, removing, dredging, miningl or extraction of any materials; 4. A change in the density or intensity of the use of land, including, but not limited to, a subdivision pursuant to the Subdivision Map Act (Government Code Section 66410, et seq,) and any other division of land, except where the division of land is brought about in connection with the purchase of such land by a public agency for public recreational use; 5, A change in the intensity of the use of water, or of access thereto; 6, The construction, reconstruction, demolition, or alteration of the size of any structure, including any facility of any private, public, or municipal entity; and, 7, The removal or harvesting of major vegetation other than for agricultural purposes. As used in this definition, II structure 11 includes, but is not limited to, / Jlf' 7,/> .-----_. - any building, road, pipe, flume, conduit, siphon, aqueduct, telephone line, and electrical power transmission and distribution line. (Source: Government Code Section 65927) . H. "Employee Training programl1 shall mean a documented employee training program for all persons responsible for implementing a storm water pollution prevention plan. The employee training program shall include, but is not limited to, the following topics: 1. Laws, regulations, and local ordinances associated with storm water pollution prevention, and an overview of the potential impacts of polluted storm water on the receiving waters of the San Diego region. 2. Proper handling of all materials and wastes to prevent spillage. 3. Mitigation of spills including spill response, containment and cleanup procedures, 4. Visual monitoring of all effluent streams to ensure that no illegal discharges enter the storm water conveyance system. 5. Discussion of the differences between the storm water conveyance system and the sanitary sewer system. 6. Identification of all on-site connections to the storm water conveyance system. 7. Preventive maintenance and good housekeeping procedures. B. Material management practices employed by the facility to reduce or eliminate pollutant contact with storm water discharge. r. "Enforcement Agency" shall mean the city of Chula Vista or its authorized agents charged with ensuring compliance with this chapter. J. "Enforcement Official" shall mean the director of public works or his or her designee, K. "Hazardous Materials" shall mean any substance or mixture of substances which is toxic, corrosive, flammable, an irritant, a strong sensitizer, or generates pressure through decomposition, heat or other means, if such a substance or mixture of substances may cause substantial injury, serious illness or harm to humans, domestic livestock, or wildlife. L. IIIllicit Connection" shall mean any un-permitted or undocumented physical connection to the storm water conveyance system which has not been approved by the city of Chula Vista, or which drains illegal discharges either directly or indirectly into the storm water conveyance system. M. IIIllegal Dischargel1 shall mean any non-permitted or non-exempt discharge to the storm water conveyance system that is not composed entirely of storm water, or is expressly prohibited by federal, state, or local regulations, laws, codes, or ordinances, or degrades the quality of receiving waters in violation of basin plan or California ocean plan standards. N. l1Land Development Permit" shall mean a permit issued by the director of public works pursuant to Chapter 15,04 of the Chula Vista Municipal Code, O. "Maximum Extent practicablel1 shall mean, with respect to Best Management Practices (BMPs), an individual BMP or group of BMPs which address a pollutant of concern, which have a cost of implementation reasonably J* ?-/~ related to the pollution control benefits achieved, and which are technologically feasible. P. "National Pollution Discharge Elimination System (NPDES) Permit!! shall mean a permit issued by the Regional Water Quality Control Board or the State Water Resources Control Board pursuant to Chapter 5,5, Division 7 of the California Water Code, to control discharges from point sources to waters of the United States, including, but not limited to: 1. California Regional Water Quality Control Board, San Diego Region, Order No, 90-42 (NPDES No, CA 0108758) NPDES Municipal Permit -- Waste Discharge Requirements for Storm Water and Urban Runoff from the County of San Diego, the incorporated cities of San Diego County, and the San Diego Unified Port District; 2. NPDES general permit for storm water discharges associated with industrial activities; 3. NPDES general permit for storm water discharges associated with construction activity; and 4. California Regional Water Quality Control Board, San Diego Region, general de-watering permits (Order Numbers 91-10 and 90-31) , Q. "NPDES general permit]] shall mean a permit issued by the State Water Resources Control Board, including, but not limited to: 1. NPDES general permit for storm water discharges associated with industrial activities; and 2. NPDES general permit for storm water discharges associated with construction activity. R. IINon-Storm Waterl1 shall mean any water conveyed to the storm water conveyance system that is not entirely composed of storm water (also see definition of "Storm Waterl1) . S, "Order Number 90 -42", dated July 16, 1990, shall mean San Diego Regional Water Quality Control Board Order Number 90-42, which constitutes NPDES Permit Number CA0108758, together with all amendments, and which is on file in the office of the city clerk as Document Number C090-287, T. !!parking Lot" shall mean an open area, other than a street or other public way, used for the parking of motorized vehicles, whether for a fee or free, to accommodate clients or customers or to accommodate residents of multi-family dwellings (i.e., apartments, condominiums, townhomes, mobile homes, dormitories, group quarters, etc.). U. "Person" shall mean any individual, organization, business trust, company, partnership, entity, firm, association, corporation, or public agency, including the State of California and the United States of America, V. "Pollutant" may include but is not limited to solid waste, sewage, garbage, medical waste, wrecked or discarded equipment, radioactive materials, dredged soil, rock, sand, sediment, industrial waste, and any organic or inorganic contaminant whose presence degrades the quality of the receiving waters in violation of Basin Plan or California Ocean Plan standards. "Pollutant" includes, but is not limited to, fecal coliform, fecal streptococcus, enterococcus, volatile organic carbon (VOC), surfactants, oil and grease, petroleum hydrocarbons, total organic carbon (TOC), lead, copper, chromium, cadmium, silver, nickel, zinc, cyanides, phenols, and biocides. % 7--/7 A "pollutantn also includes any substance defined as a pollutant under 40 CFR Section 122.2 and any contaminant which degrades the quality of the recei ving waters in violation of basin plan or California ocean plan standards by altering any of the following parameters: pH, total suspended and settleable solids, biochemical oxygen demand (BOD), chemical oxygen demand (COD), nutrients, and temperature. W. lIPremisesn shall mean any building, lot, parcel, real estate, land, or portion of land whether improved or unimproved, X. "Recei ving Waters II shall mean surface bodies of water, as described in Order Number 90-42, which serve as discharge points for the storm water conveyance system, including creeks, rivers, reservoirs, lakes, lagoons, estuaries, harbors, bays, and the Pacific Ocean. Y. nSignificant Quantities" shall mean the volume, concentrations, or mass of a pollutant in a discharge that can cause or threaten to cause pollution, contamination, or nuisance; or adversely impact human health or the environment; or, cause or contribute to a violation of any water quality standards applicable to the receiving water. Z. "Storm Water" shall mean surface runoff and drainage associated with storm events and snow melt prior to contact with urban areas, agricultural areas, and/or other areas in which the natural environment has been significantly disturbed or altered, either directly or indirectly, as a result of human activity (also see definition for "Non-Storm Watern) . For the purposes of this chapter, storm water runoff and drainage from areas that are in a natural state, have not been significantly disturbed or altered, either directly or indirectly, as a result of human activity, and the character and type of pollutants naturally appearing in the runoff have not been significantly altered, either directly or indirectly, as a result of human activity, shall be considered 1Tunpollutedl! and shall satisfy the definition of "storm waterl1 in this chapter. AA. l1Storm Water Conveyance System!! includes I but is not limited to, those municipal facilities within the city of Chula Vista by which storm water may be conveyed to waters of the United States I including any roads with drainage systems, municipal streets, catch basins, and watercourses. BB. "Storm Water Pollution Prevention Plan!! shall mean a document which describes the on-site program activities to utilize BMPs by the owner or operator of a business to eliminate or reduce pollutant discharges to the storm water conveyance system to the maximum extent practicable. A storm water pollution prevention plan prepared and implemented pursuant to any NPDES permit shall meet the definition of a storm water pollution prevention plan for the purposes of this chapter, CC. rrWatercourserr shall mean any natural or artificial stream, river, creek, ditch, channel, canal, conduit, culvert, drain, waterway, gully, ravine, arroyo or wash, in which waters flow in a definite direction or course, either continuously or intermittently, and which has a definite channel and a bed or banks. A channel is not limited to land covered by minimal or ordinary flow but also includes land covered during times of high water. l1Watercoursell does not include any surface drainage prior to its collection in a stream, river, creek, ditch, channel, canal, conduit, culvert, drain, waterway, gully, ravine, arroyo or wash. DD. "Watercourse permitl1 shall mean a permit issued by the director of public works pursuant to Chapter 14.08 of the Chula Vista Municipal Code. )J.o- '? - I cT' EE. l1Wetlands" shall mean areas that are inundated or saturated by surface or ground waters at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. (Ord 2597 §11 (part), 1994), 18.12.140 Expiration of tentative map and extension of time for filing final map--Application required--public hearing. A, The approved or conditionally approved tentative map shall expire in thirty-six months in accordance with the total authorized period of the present or as amended requirements of Section 66452.6 of the Subdivision Map Act unless it is extended in accordance with the provisions of this section. Within such time period or the period of any extension thereof, the subdivider may cause a final map to be prepared and submitted to the city council for approval or disapproval in accordance with the tentative map as approved or conditionally approved and in accordance with the Subdivision Map Act and the provisions of this title, B. The subdivider may request an extension of the approved or conditionally approved tentative map by written application to the director of planning. Such application shall be filed at least thirty and not more than ninety days before the approval or conditional approval is due to expire. The application shall state the reasons for the requested extension and at any time within ninety days of the expiration of the map. The FJlaFlRiR~ àirceter director of Dlanninq and buildinq shall determine whether a public hearing is required based on changing conditions in the area. After conducting a public hearing or reviewing the requested extension, the planning commission may approve or deny the requested extension. An extension shall not exceed thirty-six months as provided in Section 66452,6 of the Subdivision Map Act, In the event the planning commission denies a subdivider's application for extension or refuses to extend the tentative map for the full period as authorized by the subdivision Map Act, the subdivider may within fifteen days appeal to the city council. Following the meeting or the hearing on an appeal from the decision of the planning commission, the city council shall grant or deny the extension. (Ord 2100 §1 (part), 1985; Ord 2008 §1, 1982; Ord 1369 (part), 1971; prior code §28,208) , Chapter 18.54 FLOODPLAIN REGULATIONS Sections: 18.54.010 Purpose and intent. 18.54.015 Lands to which this chapter applies. 18.54.020 Basis for establishing the areas of special flood hazards. 18.54.030 Definitions. 18.54.040 Floodplain development--Permits required. 18.54.050 Floodplain development--Review by city engineer. 18.54.060 Floodplain development--Review by di"eeee" e. ¡'dldi"g a"d Be~siRg director of Ðlannina and buildina. 18.54.070 Floodplain development--City engineer action. 18.54.080 New water and sewage systems. yr 7-/1 18.54.090 Alteration or relocation of watercourses. 18.54.100 Exceptions granted by board of appeals. 18.54.110 Ordinance supersedes any conflicting statutes. 18.54.010 Purpose and Intent. In order to allow the city to participate in the Federal Flood Insurance Program (National Flood Disaster Protection Act of 1973), it is required that the city adopt regulations controlling the development of property within identified floodplains pursuant to the direction of said Act. The city council, therefore, assigns to the àireetsE af B~ilàiH§ aRà k8~6iR~ director of Dlanninq and buildina and to the city engineer certain added responsibilities¡ and they are authorized and directed to enforce all the provisions of this chapter and all other ordinances of the city now in force or hereafter adopted, relating to zoning, subdivision, or building codes, (Ord 2100 §1 (part) , 1985; Ord 1842 §1 (part) , 1978) . 18.54.040 Floodplain development--Per.mits required. A, No person, firm or corporation shall erect, construct, enlarge or improve any building or structure wi thin areas of flood hazard in the city or cause the samet including the placement of manufactured homes, to be done without first obtaining a building permit for each such action. B, To obtain such a building permit, the applicant shall first file an application therefor in writing with the àirceter af eailàiH~ aaà a8~BiR~ buildino official on a form furnished for that purpose, Every such application shall: 1- Identify and describe the work to be covered by the permit for which application is made; 2, Describe the land on which the proposed work is to be done by lot, block, tract and house and street address, or similar description that will readily identify and definitely locate the proposed building of work; 3, Indicate the use or occupancy for which the proposed work is . intended; 4, Be accompanied by necessary plans and specifications for the proposed construction; 5, Be signed by the permittee or his authorized agent who may be required to submit evidence to indicate such authority. 6, Be accompanied by elevations (in relation to sea level) of the lowest floor (including basement) or in the case of floodproofed (as defined in this chapter) nonresidential structures, the elevation to which it has been floodproofed, Documentation or certification of such elevations will be maintained by the àiree~8r 8f sl:lilài:a§J aRà fl8l:isiR§J buildinq official. 7, Be accompanied by a certification, submitted by a licensed civil engineer, structural engineer, or architect, that the plans and specifications for the proposed building or structure comply with the floodproofing requirements of the National Flood Insurance Program as revised. Said licensed civil engineer, structural engineer or architect, subsequent to construction of the proposed building or structure but prior to final approval for use or occupancy thereof, shall certify that such building or structure has ft 7- e2,e; been so floodproofed. He shall also specify the elevation to which such floodproofing is effective. This provision is not applicable to manufactured homes. S. Electrical, heating, ventilation, plumbing, and air-conditioning equipment and other service facilities shall be designed and/or located as to prevent water from entering or accumulating within the components during conditions of flooding. 9. Give such other information as reasonably may be required by the àireetor of builàia§ aaà a6usia§ buildinq official, c. In the coastal zone, development in floodplains shall also be required to obtain a coastal development permit consistent with the applicable provisions of the certified Local Coastal Program, (Ord 2248 §2, 1988, Ord 2197 §1 (part), 1987; Ord 2100 §1 (part), 1985; Ord 1842 § (part), 1978). 18.54.060 Floodplain development--Review by àireeEer ef eailàiBg aBà keasiBg bui1dina official. The àireetsE 6f B~ilàiB~ aRà B8~8iR~, director of Dlannina and buildina in reviewing all applications for new construction, substantial improvements, prefabricated buildings, placement of manufactured homes and other developments (as defined in this chapter) shall obtain, review and reasonably utilize any base flood elevation and floodway data available from a federal, state or other source, as criteria for requiring that new construction, substantial improvements, or other development in Zone A on the official map meet the following standards: A. Residential structures and substantial improvements of residential structures shall meet the following standards: The lowest floor elevation (to include basement) of new residential structures shall be elevated to a minimum of one foot above the regulatory flood elevation¡ except that in zone AO the lowest floor (including basement) shall be as high as the depth number in feet above the highest adjacent grade or two feet if no depth number is specified. B. Standards for manufactured homes: 1. All manufactured homes that are placed on or substantially improved within a special flood hazard area as identified on the cityls flood insurance rate map and which are: a. Outside of a manufactured home park or subdivision¡ or b. In a new manufactured home park or subdivision, or c. In an expansion to an existing manufactured home park or subdivision, or d. In an existing manufactured home park or subdivision within which a manufactured home has incurred "substantial damage" as the result of a flood shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is at least one foot above the base flood elevation and be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement. 2, All manufactured homes to be placed or substantially improved on sites in an existing manufactured home park or subdivision within a special flood hazard area and not subj ect to the provisions of rl' 7~2.J Section 18.54,060.B,l shall be elevated so that either: a, The lowest floor of the manufactured home is at least one foot above the base flood elevation, or b, The manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than 36 inches in height above grade and be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement. C, Nonresidential structures shall meet the following standards: L The lowest floor elevation (to include basement) of nonresidential structures be elevated or floodproofed to a minimum of one foot above the regulatory flood elevation; except that in zone AD the lowest floor (including basement) shall be as high as the depth number in feet above the highest adjacent grade or two feet if no depth number is specified; or together with attendant utility and sanitary facilities be completely floodproofed to or above that level so that any space below that level is watertight with walls substantially impermeable to the passage of water and with structural components having the capability of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; 2, Require the use of construction materials and utility equipment that are resistant to floodwater damage; 3, Require the use of construction methods and practices that will minimize flood damage; 4, Be designed or anchored to prevent the flotation, collapse or lateral movement of the structure or portions of the structure due to flooding; 5. Assure that in regard to manufactured homes, specific anchoring requirements include: a, Over-the-top ties be provided at each of the four corners of the manufactured home with two additional ties per side at the intermediate locations. Manufactured homes less than fifty feet long require only one additional tie per side. b, Frame ties be provided at each corner of the home with five additional ties per side at intermediate points. Manufactured homes less than fifty feet long require only four additional ties per side. c, Each required tie of the anchoring system shall be capable of carrying a force of four thousand eight hundred pounds. d. Any additions to mobile homes shall be similarly anchored; 6, All manufactured homes to be placed or substantially improved within zones AI-3D, AR, and AE shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is at or above the base flood elevation and be securely anchored to an adequately anchored foundation system in accordance with the provisions of this Chapter. D. For all new construction and substantial improvements, fully enclosed areas below the lowest floor that are subject to flooding subject to flooding shall be designed to automatically equalize hydrostatic flood forces on J<6 7---22 exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must either be certified by a registered professional engineer or architect or must meet or exceed the following minimum criteria: A minimum of two openings have a total net area of not less than one square inch for every square foot of enclosed area subject to flooding shall be provided, The bottom of all openings shall be no higher than one foot above grade. Openings may be equipped with screens, louvers, or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. (Ord 2386 §4, 1990; Ord 2248 §3, 1988; Ord 2197 §1 (part) , 1987; Ord 2100 §1 (part) , 1985; Ord 2039 §1 (part) , 1983; Ord 1842 §1 (part) , 1978) , 19.09.050 Requirement for Public Faci1itiee Finance Plans, Air Quality Improvement Plans, and Water Conservation Plans. A, Public Facilities Financing Plans. No application for a SPA plan, or, if a SPA plan is not required, no application for a Tentative Map, shall be deemed complete or accepted for review unless: 1. It is accompanied by an PFFP which has been approved by the city; or 2, An PFFP which includes the project has already been initiated; or 3. The applicant initiates the preparation of an PFFP. The PFFP may be waived by the city council upon a showing that there are no public service, facility or phasing needs warranting the preparation of an PFFP, B, Air Quality Improvement Plans. No application for an SPA plan, or, if an SPA plan is not required, no application for a Tentative Map, shall be deemed complete or accepted for review unless: 1. It is accompanied by an Air Quality Improvement Plan which has been approved by the city; or 2. An Air Quality Improvement Plan which includes the project has already been initiated; or 3, The applicant initiates the preparation of an Air Quality Improvement Plan in such form and/or containing such information including maps, drawings, diagrams, etc. , as the city !3laBBiR~ ài:n:et.er director of clannina and buildina shall require. C, Water Conservation Plans. No application for an SPA plan, or, if an SPA plan is not required, no application for a Tentative Map, shall be deemed complete or accepted for review unless: 1. It is accompanied by a Water Conservation Plan which has been approved by the city; or 2, A Water Conservation Plan which includes the project has already been initiated; or 3. The applicant initiates the preparation of a Water Conservation Plan in such ;¡::f 7" ..2 ;¡ form and/or containing such information including maps, drawings, diagrams, etc., as the city ~laaaia~ àir~eter director of Dlanninq and buildinq shall require. D. No SPA plan, nor any tentative subdivision map shall be approved or deemed approved, without an approved PFFP, an approved Air Quality Improvement Plan and a Water Conservation Plan, To provide consistency and implementation of said Plans, the city council may impose any condition to the approval of a SPA plan or tentative subdivision map necessary to implement the PFFP, the Air Quality Improvement Plan, the Water Conservation Plan, the Growth Management Program, or the Master Facility Plans. E, No final map shall be approved until all the conditions of the PFFP, the Water Conservation Plan and the Air Quality Plan have been met, or the project applicant has provided adequate security to the city that said plans will be implemented, F, No other discretionary planning approvals shall be granted unless the city council finds that the Project is consistent with an approved PFFP, an Air Quality Improvement Plan, and a Water Conservation Plan. G, No building permit shall be issued unless the permit is consistent with any applicable PFFP, the Air Quality Improvement Plan and the Water Conservation Plan and all applicable fees, including but not limited to, development impact fees, traffic impact fees, drainage fees, school fees, park fees, sewer fees, water fees, or other development fees adopted by the city council have first been paid or provision for their payment has been made to the satisfaction of the city council. H. No development shall occur in a PFFP area if the demand for any public facilities and services exceeds capacity and it is not feasible to increase capacity prior to completion of development unless means, schedule and financing for increasing the capacity is established through the execution of a binding Agreement providing for installation and maintenance of such facilities or improvements in advance of city's phasing schedule. (Ord 2448 ?2 (part), 1991). 19.09.060 Public Facilities Finance Plan Contents. A, A PFFP shall contain a complete description of the proposed development project and a complete description of all public facilities included within the boundaries of the plan as defined by the director of planning. The plan shall contain a description of the individual and cumulative impacts of the proposed development on the community as it relates to the Growth Management Program, the specific facility master plans and the Threshold Standards, B. The PFFP shall consist of maps, graphs, tables, and narrative text and shall be based upon the General Plan and zoning applicable within the area of impact. The PFFP shall be consistent with the Growth Management Program and Threshold Standards and shall implement the Growth Management Program within the area. C, The boundaries of the PFFP shall be established by the city at the time a SPA Plan or Tentative Map is submitted by the applicant, The boundaries shall be based upon the impact created by the Project on existing and future need for facilities. The project boundaries will correlate the proposed development project with existing and future development proposed for the area of impact to provide for the economically efficient and timely installation of both onsite and offsite facilities and improvements required by the development, In establishing the boundaries for the PFFP, the city shall be guided by the following considerations, ,n. 7--,21 1. Service areas or drainage or sewer basins which serve the project; 2. Extent to which facilities or improvements are in place or available¡ 3, Ownership of property; 4. Project impact on public facilities relationships, especially the impact on the city's planned major circulation network; 5. Special district service territories; 6. Approved fire, drainage, sewer, or other facilities or improvement master plans, D, The boundaries shall be established by resolution after a public hearing notice of which is given pursuant to Section 19.12.070. E, The PFFP shall show how and when the facilities and services necessary to accommodate development within the area will be installed or financed: 1, Police 2, Fire/EMS 3. Schools 4. Libraries 5. Parks and Recreation 6, Water 7. Sewer 8. Drainage 9, Traffic 10, Civic Facilities 11- Corporation Yard F, The PFFP shall include the following information with regard to each facility and service listed in subsection E: 1. List of Facilities and Services A list or schedule of facilities and service requirements correlated to individual development projects within the area. 2. Inventory An inventory of present and future requirements for each facility and service based upon the Threshold Standards. The inventory shall include Life Cycle Cost ("Lccrr) projections for each element in 19,09,060(E) above as they pertain to city fiscal responsibility, The LCC projections shall be for estimated life cycle for each element analyzed. The model used shall (R 12t91) ? );).3 .' be able to identify and estimate initial and recurring life cycle costs for the above elements. Because requirements for certain facilities and services may overlap plan boundaries, the plan shall address the need for coordination and shall propose a coordination plan for facilities and services extending from one proj ect boundary area to another. Cost estimates for funding public facilities and services directly related to the impact created by the project as well as for proposals for funding existing deficiencies required by the project prior to the phasing schedule set forth in the Growth Management Program shall be included. It must be shown that development in the area will not reduce the existing facilities or services capabilities within the Project boundaries or create facilities or improvements shortages in other areas or reduce capability in any area below the Threshold Standard which is established pursuant to Section 19,09,040, The growth inducing impact of the out of area improvements shall be assessed and mitigation provided, if appropriate, to the satisfaction of the city council. 3, Phas ing Schedule A phasing schedule, which complies with the adopted development phasing policy as set forth in the Growth Management Program and the Threshold Standards which establishes the timing for installation or provision for facilities and services required by the project, The phasing schedule shall ensure that development of one area will not utilize more than the areals prorata share of facility or service capacity within the projected service area of a facility unless sufficient capacity is ensured for other areas at the time of development. The phasing schedule shall include a schedule of development within the area and a cash flow analysis for financing of facilities and services for the PFFP area. The phasing schedule shall identify periods where the demand for facilities and improvements may exceed the capacity and provide a plan for eliminating the shortfall, If a project cannot demonstrate consistency with the phasing schedule, the PFFP must demonstrate to the cityrs satisfaction, how facilities required for the project in advance of the phasing schedule as set forth in the Master Plan will be provided, If no facility master plan or Threshold Standards exists for a particular facility, the PFFP for the project must demonstrate, how that facility will be provided and financed in a phased and timely manner. 4. Financing Plan A financing plan establishing specific methods of funding each facility and service identified in the PFFP which allocates the cost to the various properties within the plan area. The plan shall identify those facilities and services which would otherwise be provided as a requirement of processing a development project (i.e. requirements imposed as a condition of a development permit) or provided by the developer in order to establish consistency with the General Plan, Growth Management Program, facility master plans or this section, and those facilities and improvements for which new funding methods which shall be sufficient to ensure that funds are available to construct or provide facilities or services when required by the phasing schedule for the project. Where facilities or services are required for property within the PFFP area, other than the project, the phasing plan shall identify those other properties and the PFFP for each property shall be coordinated. Coordination, however, shall not require identical funding methods, G. The PFFP shall establish the proportionate share of the cost of facilities (R 12/91) }K ? -- .2? and services identified in the Growth Management Program and the Master Facilities Plans attributable to the development of each property in the PFFP area. H. In the event that an applicant provides private financing for public facilities or services to service a project in advance of the normal time frame for constructing such facilities, the approval of credits against any city fees for such advanced private financing may be postponed until the estimated time of such construction as specified in the specific facility master plan or the cityls capital improvement program budget. In lieu of a facility master plan phasing schedule, such determination shall be made by the city council after reviewing information from the þlaRRiR~ àiEeet6E director of olannina and buildina, city engineer, finance director I and Deputy city manager. In no event shall a developer receive interest on funds for providing public facilities or services in advance of the cityrs schedule. The developer shall also become responsible for the maintenance and operation costs associated with the early construction of said facility. No repayment will be made to the developer for the funds provided for maintenance and operational costs. All repayments will be considered in accordance with the cityls projected construction dates for said facilities. I, Assessment districts requested by the developer shall not be given credit for facility fees when a facility is constructed above the standards established by the respective facility master plan or standards imposed as conditions on the approval of the project by the city council, J. A fiscal analysis/economic impact report shall be provided identifying capital budget impacts on the city as well as maintenance and operation costs for each proposed phase of development, The report shall include an analysis of the Project impact on school districts and water agencies as well as the life cycle analysis set forth in Section F.2. Each year during the development of the Project, the director of planning may require the applicant to provide the city with an updated fiscal impact report reflecting the actual revenue and expenditure impacts based upon the development of the Project. The project shall be conditioned to provide funding for periods where expenditures exceed projected revenues. K. Developer contributions shall not be required as a source of funding for that proportion of the cost of any facility or service that is needed to reach Threshold Standards due to the demands created by existing development. (Ord 2448 ?2 (part), 1991), 19.09.70 Public Facilities Finance Plan Preparation. A. An PFFP, an Air Quality Improvement Plan, and a Water Conservation Plan may be processed concurrently with the SPA plan or tentative map. B. A PFFP may be initiated by filing an application with the ~laRRiR§ àiyeeE8Y director of olannina and buildina. The applicant shall pay a deposit at the time any application for a PFFP is accepted. C. A PFFP for a project shall be prepared by the city, or a consultant selected by the city, according to the procedures established by this section. D, The cost of PFFP preparation shall be advanced to the city by the applicant (R 12/91) ~ 7~;¿ ? and any participating owner or owners prior to PFFP preparation. (Ord 2448 72 (part), 1991), 19.09.080 Public Facilities Finance Plan Review. A. PFFP's shall be reviewed according to the following procedure: 1, A completed PFFP complying with this chapter, and accompanied by a processing fee in an amount established by city council resolution, may be submitted to the þlaBBiB§ àiEeeE6r director of olanninq and buildinq for processing. If the ]?laBFliB§ àireeteE director of Dlanninq and buildinG determines that the plan complies with the provisions of this chapter, the director shall accept the PFFP for review, Once the PFFP has been reviewed and complies with the provisions of this chapter, it shall be set for public hearing before the planning commission together with the accompanying development plan. 2, The hearing shall be noticed according to the provisions of Section 19.12.070. A staff report containing recommendation on the PFFP shall be prepared and furnished to the public, the applicant, and the planning commission prior to the hearing. 3. The planning commission shall hear and consider the application and shall by resolution prepare recommendations and findings for the city council. The action of the Commission shall be filed with the city clerk, and a copy shall be mailed to the applicant, 4. When the planning commission action is filed with the city clerk, the Clerk shall set the matter for public hearing before the city council. The hearing shall be noticed according to the provisions of Section 19.12.070. 5, The city council shall hear the matter, and after considering the findings and recommendations of the planning commission, may approve, conditionally approve, or deny the plans. The city council may include in the resolution adopting the PFFP any fees or facilities improvement requirements provided for in city ordinances in order to implement the Growth Management Program, the Master Facility Plans and the PFFP. 6. A PFFP may be amended following the same procedures for the original adoption. (Ord 2448 72 (part), 1991), 19.14.090 Conditional use permit-Public hearing procedure-Finding of facts. The planning commission or the zoning administrator shall make a written finding which shall specify acts relied upon in rendering said decision and attaching such conditions and safeguards as deemed necessary and desirable not more than ten days following the decision of the commission or the zoning administrator, and shall fully set forth wherein the facts and circumstances fulfill or fail to fulfill the requirements of this section and Section 19,14,080, A copy of this written finding of facts shall be filed with the city clerk, with the àireete:r sf El:lilài:a§ a:aà aSl:lsiR§, director of Dlanninq and buildinq and mailed to the applicant. The decision of the planning commission (R 12/91) X 7 -;¿.lJ or zoning administrator shall be final on the eleventh day following its filing in the office of the city clerk, except where appeal is taken as provided herein. (Ord 2374 ?2 (part), 1990; Ord 1212 ?1 (part), 1969; prior code ?33,1305(B)), 19.14.020 Zoning administrator-Creation of position. In order to relieve the planning commission of certain routine functions necessary to the proper administration of this chapter, a zoning administrator is created who shall be the ~laBRiR~ àireeter director of Dlanninq and buildinq or his authorized deputy, with such authority as is granted to him by this chapter, (Ord 1212 ?1 (part), 1969; prior code ?33 ,1302 (A) , 19.14.190 Variance-Prerequisites for granting. The zoning administrator shall grant a variance only when the following facts are found: A, That a hardship peculiar to the property and not created by any act of the owner exists, Said hardship may include practical difficulties in developing the property for the needs of the owner consistent with the regulations of the zone; but in this context, personal, family or financial difficulties, loss of prospective profits, and neighboring violations are not hardships justifying a variance. Further, a previous variance can never have set a precedent, for each case must be considered only on its individual merits; B. That such variance is necessary for the preservation and enjoyment of substantial property rights possessed by other properties in the same zoning district and in the same vicinity, and that a variance, if granted, would not constitute a special privilege of the recipient not enj oyed by his neighbors; C. That the authorizing of such variance will not be of substantial detriment to adjacent property, and will not materially impair the purposes of this chapter or the public interest; D, That the authorizing of such variance will not adversely affect the General Plan of the city or the adopted plan of any governmental agency. E. In the coastal zone, granting of variances is consistent with and implements the certified Local Coastal Program, and that the granting of such variances does not reduce or in any way adversely affect the requirements to protect coastal resources as specified in the zones included in this chapter, and that the variance implements the purposes of the zones adopted in implementation of the local coastal program. The ~laRRiR§ àiEêeEsE director of Dlanninq and buildinq or planning commission may grant a variance to a regulation prescribed by this chapter only with respect to fences, walls, hedges, screening, or landscaping¡ site area, width, frontage or depth; front, rear, or side yards¡ basic floor area¡ height of structures; or distances between structures, courts or usable open space as the variance was applied for, or in modified form, if, on the basis of the application and the evidence submitted, the director of planning makes findings of fact that establish that the circumstances prescribed in subsections (a) through (c) of this subsection apply: 1. Because of special circumstances applicable to the property, including size, shape, topography, location, or surroundings, the strict application of the (R 12/91) :;;r 7---21 ordinance deprives such property of privileges enjoyed by other property owners in the same land use classification in the coastal zone. 2. That the strict application of the specified provision would deprive the applicant of privileges enjoyed by the owners of other property classified in the same use classification in the coastal zone; and 3. That the granting of the variance will not constitute a grant of special privilege inconsistent with the limitations on other properties in the same use classification in the coastal zone. (Res, 11903, 1985; Ord 1212 ?1 (part), 1969; prior code ?33,1308(E)), 19.14.270 Procedures for enforcing conditional use pe~its and variances. A. The plaRaiR~ àireeter director of Dlannino and buildino shall investigate evidence presented to him or her to determine whether probable cause exists that any of the following has occurred or is substantially likely to occur regarding any variance or conditional use permit: 1. Fraud: That the variance or conditional use permit approval was obtained by fraud; 2. Non-Use: That the uses and privileges authorized by the variance or conditional use permit have not been initiated in the manner and within the twelve months specified in Section 19.14.260, and no extension of time has been granted; 3, Abandonment: That the property or any structure thereon subject to the variance or conditional use permit has been abandoned or the use authorized has ceased for a period exceeding twelve months; 4. Violation of Conditions: That the variance or conditional use permit is being or has been exercised contrary to the conditions of said permit, or in violation of any applicable licenses, permits, regulations or laws; S. Violation of Use: That the variance or conditional use permit is being or has been exercised in excess of the use right granted. 6, Public Health, Safety and Welfare: That the use for which the variance or conditional use permit was obtained is being or has been exercised so as to be detrimental to the public health, safety, or general welfare or so as to constitute a public nuisance. If the ~laRRiR§ àiEeetsy director of clannino and buildina has probable cause to believe that any of the foregoing has occurred or is substantially likely to occur, he/she shall issue a recommendation as to what action should be taken. The recommendation shall be submitted to the individual or body which issued the conditional use permit or variance (hereinafter referred to as "permitting authority") . B, The permitting authority shall hold a public hearing to consider the ~laRRia§J àires-esE' 6 director of clannino and buildino's recommendation regarding the conditional use permit or variance. C. Notice of any public hearing to consider violations of variances and (R 12/91) 7' 7-J¿J ..--.-....------.-- conditional use permits shall be given consistent with the procedures set forth in Section 19.12.070. The notice shall contain the following information: 1. The date, time, and place of the public hearing; 2. The identity of the permitting authority; 3. A general explanation of the matter to be considered including the nature of the ]?laRRiR§ àiYEetsE r 8 director of Dlannina and buildinq's recommendation; 4. A general description, either in text or by diagram, of the location of the property, D. Procedures for public hearing: The following procedures shall be followed for public hearings provided for in this section: 1. Recommendation and reports: The ~laRRiR~ àiEeeËsE's director of Dlannina and buildinq's recommendation and any accompanying staff reports, if any, shall be made available to the public prior to commencement of the public hearing provided for herein. 2. Recordation: The public hearing may, at the written request of an interested party, be recorded by either a recording device or stenographer. 3, Testimony: Any witness offering evidence or testimony may be placed under oath and subject to cross-examination at the request of the permitting authority or any party interested in the matter which is the subject of the hearing, 4. Relevancy: Evidence or testimony must be relevant or material to the fact or facts at issue. Any relevant evidence may be admitted if it is the sort of evidence upon which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rule which would otherwise make improper the admission of such evidence in civil actions. All irrelevant and unduly repetitious evidence may be excluded. 5, Hearsay: Hearsay evidence shall be admissible, but the fact that evidence is hearsay may affect the weight given to the evidence in reaching any determination of any question of fact. Hearsay evidence may be used for the purpose of supplementing or explaining other evidence, but may not be sufficient by itself to support a decision unless it would be admissible over objection in civil actions. 6. Privileges: The rules regarding privileges shall be effective to the extent they are raised and otherwise required by law to be recognized at the hearing. 7. Procedural Compliance: The hearing need not be conducted under rules relating to evidence. Failure of the permitting authority to strictly enforce rules of evidence and reject certain matters which may be irrelevant or immaterial shall not be sufficient to constitute reversible error on the part of the permitting authority if basic procedural due process is granted to all affected parties and a fair hearing has been conducted. Errors which do not affect substantial rights will be disregarded and no presumption of prejudicial error is raised by the failure to strictly adhere to procedural (R 12/91) ? 7.; Y / requirement E, The permitting authority, after public hearing, shall make a finding or findings whether any or all of the factors articulated in Subsection A apply to a conditional use permit or variance. F, Based on its findings, the permit authority may do anyone or a combination of the following: 1. Maintain the existing variance or conditional use permit without modification; 2. Modify or delete any provision or condition of the variance or conditional use permit; 3. Establish any new condition or provision; 4. Revoke the variance or conditional use permit; 5, Establish any fine or charge which may be paid in lieu of revocation, modification, or imposition of a condition. G, Written Decision: The permitting authority must issue a written decision explaining the factual basis for its decision. Notice of the permitting authority's written decision and action shall be mailed to the affected party and any interested party requesting such notice consistent with Section 19,12,070, Said notice shall be filed with the city clerk, H, Right of Appeal: Within ten days after the notice of the written decision is filed, unless the date is waived by the appellate body upon a showing of good cause, any interested party who participated in the public hearing or the þlaFll~.iR§ àiYC8tsr director of Dlannina and buildinq may appeal the written decision to the appropriate appellate body as follows: LIf the permitting authority is the zoning administrator, appeal shall be filed with the planning commission; 2, If the permitting authority is the planning commission, appeal shall be filed with the city council; 3, If the permitting authority is the city council no further appeal is available, The appeal shall include a statement of the reasons supporting the appeal, including a demonstration that any issues being raised were raised during the public hearing, 1. After an appeal is filed and accepted, the appellate body shall hold a public hearing consistent with the provisions set forth in this section. The appellate body may, in its discretion, consider additional evidence not presented at the public hearing, J, The appellate body may reverse, uphold, or modify in any manner a written decision or take any action consistent with this section, after public hearing, upon a written appellate decision. Notice of the written appellate decision shall be mailed to the affected party and any interested party requesting such notice consistent with Section 19.12.070. Said notice shall be filed with the city clerk, (R 12/91) )8' /";12 L. Appeal to city council: If the appellate body is not the city council, an appeal may be filed by any interested party who participated in the appeal or by the ~laFlFliFl§ àiEEet.er director of Dlanninq and buildinq who may request an appeal to the city council within ten days after the notice of the written appellate decision is filed, unless waived by the city council upon a showing of good cause, The appeal shall include a statement of the reasons supporting the appeal, including a demonstration that any issues being raised were raised during the public hearing. The appeal shall include a statement of the reasons supporting the appeal, including a demonstration that any issues being raised were raised during the public hearing, M, Any written decision regarding an appeal shall be final on the eleventh day after its filing, unless an appeal is timely filed, if such an appeal is available to an issuing body or a waiver is obtained. All written decisions issued by the city council shall become final when notice of such written decision is filed. N. After the written decision becomes final, it shall be filed with the àireetsr sf plaFlFliFl~, àireetsr sf È~ilàiB~ aFlà fl6~BiB§ director of Dlannina and buildina, and a copy may be filed with the County Recorder of San Diego County. Uses and structures must be brought into compliance with the final decision or otherwise brought into compliance with the underlying zone. Where a variance or conditional use permit is revoked, it shall become void. (Ord 2520 ?1, 1992), 19.14.480 Site plan and architectural approval-Zoning permit issuance prerequisite-Building inspector authority-Appeals. A. Following site plan and architectural approval by the zoning administrator as provided in this chapter, and provided all other applicable requirements of this chapter have been met, the GRief B~ilàiFl§ Offiecr buildina official shall issue a zoning permit, as provided in Sections 19.14.500 through 19.14.550, and shall ensure that development is undertaken and completed in conformity to the approved plans, A copy of the decision resolution of the zoning administrator shall be filed with the ~laBBiR~ àireetsr director of Dlannina and buildina and mailed to the applicant. Appeals from determinations by the zoning administrator shall be to the planning commission, upon written request for a hearing before the Commission. In the absence of such request being filed within seven days after determination by the Administrator, the determination shall be final. B. The appeal shall be filed with the plaaaiR! àiEestsr director of Dlannina and buildina in the form required by the plaBBiR! àireet.sI director of Dlannina and buildina, and be accompanied by the non-refundable Required Fee therefor, The appeal shall include a statement of the reasons supporting the appeal, including a demonstration that any issues being raised were raised before the zoning administrator. Upon the proper filing of the appeal, the director of planning and buildinq shall cause the matter to be set for public hearing, giving the same notice as required in Sections 19,12,070 and 19,12,080, C. Upon the hearing of an appeal, the planning commission may by resolution, affirm, reverse or modify, in whole or in any part, any determination of the (R 12/91) y- 7-J;f zoning administrator. The resolution shall contain findings of facts showing wherein the project meets or fails to meet any applicable site plan and architectural principles in Section 19.14.470, the provisions of the Design Manual or any Design Standards required for the project, or other non-conformity with the requirements of this Chapter. A copy of the decision resolution of the planning commission shall be filed with the city clerk and mailed to the applicant. The decision of the planning commission shall be final on the eleventh day after its filing, except where further appeal is taken as provided herein. D. The applicant or other interested person may appeal the decision of the planning commission granting or denying site plan and architectural approval to the city council within ten days after said decision is filed with the city clerk. Said appeal shall be filed with the city clerk in writing upon forms provided by the ~laRRiR§ àirester director of Dlannina and buildina and be accompanied by the non-refundable Required Fee therefore, The appeal shall include a statement of the reasons supporting the appeal, including a demonstration that any issues being raised were raised during the public hearing. If a proper appeal is filed within the time limits specified, it automatically stays proceedings in the matter until a determination is made by the city council on the appeal, E. Upon the filing of the appeal, the city clerk shall set the matter for public hearing, giving the same notice as required in Sections 19.12.070 and 19,12,080, The city clerk shall send the ~laHniH~ ~ireeter director of plannino and buildino a duplicate copy of the appeal and who shall transmit to the city council the minutes of the hearing before the planning commission and/or zoning administrator (if any), and all other evidence, maps, papers and exhibits upon which the planning commission made its decision. F. After hearing the appeal, the city council may, by resolution, affirm, reverse or modify, in whole or in any part, any determination of the zoning administrator or the planning commission. The Council resolution by which the appeal is decided shall contain findings of facts showing wherein the project meets or fails to meet the applicable site plan and architectural principles in Section 19.14.470, the provisions of the Design Manual, any Design Standards required for the project, or other non-conformity with the requirements of this Chapter, A copy of the decision resolution of the city council shall be filed with the city clerk and mailed to the applicant, (Ord 2587 ?1, 1994; Ord 1212 ?1 (part), 1969; prior code ?33 ,1313 (A) (6)), 19.52.040 Procedures following planning commission decision-Appeals. A. After decision by the planning commission, copies thereof shall be mailed to the applicant and to any party filing a written notice therefor with the secretary of the commission or the ~laRRiR§ àir~6teI director of Dlannina and buildina, and the application and any supporting documents, together with the written decision of the planning commission shall be forwarded to the city clerk, who shall cause same to be placed upon the agenda of a regular meeting of the city council within fifteen days after receipt thereof. B. If the applicant or any other interested party is dissatisfied with the decision of the planning commission, such person may file a notice of appeal within ten days from the date such notification of the planning commission's (R 12/91) .3J-' 7-- 3'/ decision was mailed to the applicant. Such notice of appeal shall be filed with the city clerk. Such appeal shall be in writing and shall state wherein the appellant feels the planning commission's decision was in error, and his reasons therefor. (Ord 1281 §2 (part) , 1970; Ord 1212 §1 (part) , 1969; prior code §33,530(C)}, 19.58.042 Carnivals and Circuses. Carnivals and circuses shall be subject to the following development standards: A, Carnivals shall be restricted to locations where the ingress and egress from the site shall be designed so as to minimize traffic congestion and hazards and provide adequate parking; B, Adequate controls or measures shall be taken to prevent offensive noise, vibration, dust and glare from any indoor or outdoor activity onto adjacent property or uses¡ C, The time of operation and the duration shall be limited by consideration of the impacts on the surrounding uses or the community as a whole, The frequency of operation at a particular location shall be a consideration in determining whether or not to grant the permit. Carnivals and circuses shall have adequate insurance, pursuant to city council Policy, to indemnify the city from liability, A business license shall be required. D, The site shall be cleared of weeds and obstructions. Fire regulations shall be met as established by the Fire Marshal including inspection prior to opening. Security guards as required by the Police Department shall be provided, Uniformed parking attendants to be determined by the Traffic Engineer. The number of sanitary facilities shall be as determined by the De}!3art.ffiE:Rt. sf D1:lilàiR§ aFlà IIs1:lsiH§ DeDartment of Planninq and Buildinq. All electrical installations shall be inspected and approved by the DepartmeRt sf Bt:lilàiR§ aRà IISllSiR§ DeDartment of Planninq and Buildinq. E, The zoning administrator has the right to impose additional standards or waive any of the above standards on the finding that said standards are or are not necessary to protect the public health, safety and general welfare, F, A bond shall be posted to cover any work and compliance with conditions to be done once the carnival is over. Any violation of the above regulations which has been substantial shall be sufficient grounds for the zoning administrator to revoke the conditional use permit and require removal of the circus or carnival from the property. (Ord 2074 §4, 1984) . 19.58.090 Club, country-Golf course. Country club and golf course regulations are as follows: A, No building shall be located within twenty feet of any property line, B, Facilities, such as restaurants and bars, may be permitted when conducted and entered from within the building. (R 12/94) ;a-- 7"35 c. Swimming pools, tennis courts, and the like shall be located not less than twenty-five feet from any property line, and, when adjoining property in an R or C zone, shall be effectively landscaped, subject to the approval of the ~laBRiB! àiEee~eF director of Dlannino and buildino. (Ord 1356 §1 (part), 1971; Ord 1212 §1 (part), 1969; prior code §33, 901 (B) (8) ) , 19.58.320 Tract office, temporary. Within the boundaries of a subdivision where lots are offered for sale to the public for the first time, buildings and structures erected in compliance with the provisions of the prevailing zone may be used as follows: A. One building for a temporary real estate sales office, and not more than six dwellings for temporary demonstration or model home purposes may be provided. In addition, a subdivision containing more than sixty lots may use up to ten such lots for model home purposes. Such temporary uses shall be made only in conjunction with the sale or rental of land or buildings within such subdivisions and such use or uses shall terminate two years after the filing in the office of the county recorder of the final subdivision map thereon, or sixty days after the sale of the last house, whichever comes first. After the time limit has expired all commercial activity shall cease and the temporary office building, if any, shall be converted to a conforming use or removed at the owner's expense. At the termination of such office use, all necessary alterations to convert the temporary office to residential use or removal of said building shall be made. B. If alterations are needed in the initial conversion from a house to a temporary office, the following shall be done: A two hundred and fifty dollar penal bond shall be filed with the city clerk to assure said work will be completed. Upon a recommendation from the àiIeeter af E~ilàiB§ aaà hSl:1.siFl§ director of Dlanninq and buildinq iFls~EetieR or his authorized deputy, he shall approve or reject the final alteration work. C. The zoning administrator shall determine the need for off-street parking, based on the location of model homes in relationship to adjoining subdivisions; the size of the subdivision; character of the street; and the expected duration of model home area use. (Ord 1356 §1 (part), 1971; Ord 1212 §1 (part), 1969; prior code §33,901(B) (32», 19.58.330 Trailers. (See Definitions, Section 19,04,298), A. It is unlawful to use a camping trailer, motor home, camper, or travel trailer for living or sleeping purposes except when parked within a licensed recreation vehicle park or mobile home park, as provided elsewhere in this title, or when used on a temporary basis not to exceed a period of seven days by guests or visitors of residents of the city and said vehicle is parked upon the property of the resident, B. It is unlawful to use a trailer, excluding commercial coach units, as a (R 12/94) X 7,-3? business office in any zone, except that a general contractor and/or property owner or lessee may obtain a temporary permit for the parking of one or more mobile homes, motor homes, campers or travel trailers for watchmen, supervisory or other special personnel, or for use as a temporary office at or immediately adjoining a major construction site upon commencement of such construction. Any such permit shall be issued only by the àixeetsy sf s~ilàiR§ aaà a8~8iR~ director of Dlannina and buildina of the city after an application, in writing, is submitted by the general contractor specifying: 1. The number and type of such vehicles; 2. The reasons their presence is necessary at the site at times other than normal work hours; 3. The period for which the permit is sought; 4. The vehicles for which a permit was issued shall be removed from the premises ten days after final inspection. c. Commercial coach units may be utilized for a maximum of twenty-five percent of the total industrial and/or commercial floor area available to a particular use; provided, that if visible from a public street or from adjoining properties, the coach units shall be made architecturally compatible with and complementary to the balance of the structures on the same and adjacent sites. D. Commercial coach units may be utilized as temporary building space in conjunction with public or quasi-public uses located in residential zones, and in conjunction with public, quasi-public, and private uses, such as banks, insurance offices, savings and loan institutions, public utility offices, and similar public-service-based uses in commercial and industrial zones, provided that a conditional use permit is procured for each commercial coach so utilized. All conditional use permits granted for the utilization of commercial coaches as temporary building space shall be limited to a period of not more than two years; provided, however, that the permittee may apply to the planning commission for an extension of time, which the commission may grant for a maximum of one additional year. E. A mobile home, certified under the National Mobile Home Construction and Safety Standards Act of 1974 (U,S.C, Section 5401 et seq,), may be placed on a permanent foundation on a private lot in the A and R-l zones and on lots designated for single-family detached dwelling units in the P-C zone; provided, that: 1. It may be occupied only as a residential use; 2. All development standards of the underlying zone pertaining to conventional single-family development are complied with; and 3, The foundation is in compliance with all applicable building regulations. (Ord 1941 §1 (part), 1981; Ord 1711 §2, 1976; Ord 1518 §1, 1974; Ord 1356 §1 (part), 1971; Ord 1212 §1 (part), 1969; prior code §33,901(B) (33)), (R 12/94) )IJ" 7--.3 ? 19.58.400 Recreational vehicle storage yards. An application to establish a recreational vehicle (RV) storage yard (storage area for motor homes / camping trailers I boats and other recreation equipment) shall address the following issues: (1) height limit for stored items, (2) screening (landscaping and fencing) , (3) surfacing, (4) access to the site, (5) office facilities¡ (6) customer parking, (7) lighting, (8) hours of operation, (9) security, (10) signingl (11) surrounding land uses and structures. The application shall also be accompanied by a comprehensive list of items which would be eligible for storage. Any subsequent additions to the list shall be subject to the approval of the !31aRRiR~ àireet.ar director of clanninq and buildinq, The approval of an RV storage yard judged by the commission to represent an interim use of land based upon zoning, development patterns, and/or pending plans in the area shall be subject to a review and report filed each year by the owner with the city zoning administrator. Failure to file the report or abide by the conditions of approval shall cause the matter to be set for a rehearing before the commission to consider revocation of the permit or other appropriate corrective action. Permits for interim RV storage yards shall be granted for a maximum period of five years with extensions subject to rehearing before the commission. (Ord 2169 §2, 1986) , 19.60.041 Signs-Prohibited on public rights of way, No person shall paint, mark or write on or post or otherwise affix any sign within the public right of way, which includes but is not limited to, the following: sidewalk, crosswalk, curb, curbstone, street, lamp post, hydrant, tree, shrub, tree stake or guard, railroad trestle, electric light or pole or telephone or telegraph or trolley wire or pole or wire apparatus thereof or upon any fixture or upon any lighting system, street sign or traffic sign. If a sign is posted in violation of this section, the àiyeeEsy sf Euilàifl~ aaà às~siR~ director of Dlannina and buildina may cause removal of the sign and assess a charge for the cost of removal to the person or entity responsible for placement of the sign, or on his behalf the sign was placed, A sign removed pursuant to this section is subject to immediate removal and destruction and is not subject to the storage requirements of Section 19.60.080, or to the notice requirements of Section 19,60,580, (Ord 2389 §1, 1990) , 19.60.580 Political signs-Removal authorized when. The procedure for the removal of political signs is as follows: A, With the exception of signs posted in the public right-of-way, which may be removed without notice, the àirceter sf l3l:iilàia~ aaà heu8iFl~ director of Dlannina and buildina or his or her designee is hereby authorized, after giving twenty-four hours notice to the owner of the sign, to remove any political signs that do not conform to the standards herein provided. The notice shall specify the provision of (R 12/94) ~ '}~3JY the sign ordinance being violated, and shall inform the owner that removal charges will be assessed. The owner may, within twenty-four hours, request a hearing before the àiLee~eI sf B~ilàiR§ aRà fts~6iR§ director clanninq and buildinq to appeal the decision to remove the sign, If the owner so requests, the sign shall not be removed until the hearing has been held and a final decision rendered, B. If the owner cannot be located after reasonable effort to do so, the sign may be treated as abandoned property and removed. (Ord 2389 §4, 1990; Ord 2228 §2, 1987; Ord 1575 §1 (part), 1974; Ord 1414 §1 (part), 1972; Ord 1356 §1 (part), 1971; Ord 1212 §1 (part), 1969; prior code §33,950(I) (2) (d)), 19.62.200 Enforcement of this chapter. The B\1.ilàiR§ anà hS\1.siR§ ài:n~.eEer clanninq and buildinq director, code enforcement officers and other employees designated by the BuilàiH~ aHà fleu8iH~ àiEeeter clanninq and buildinq director shall have the authority to enforce this chapter in accordance with the procedures as set forth in Chapters 1.40 and 1.41. Any violation of this chapter shall constitute an infraction, and the administrative citation provisions contained in Chapter 1.41 of this code shall be applicable, (Ord 2718 §1 (part), 1998; Ord 2176 §7 (part), 1986), 19.64.150 Non-residential structures -Replacement restrictions. Any non-residential nonconforming building damaged more than sixty percent of it value, as established by the ài~eeteE sf È~ilàiR§ aRà R8\1.siR§ director of clanninq and buildinq, at the time of damage by fire, flood, explosion, wind, earthquake, war, riot, or other calamity or act of God, shall not be restored or reconstructed and used as before such happening; but if less than sixty percent damaged, it may be restored, reconstructed or used as before, provided that such be initiated within six months and be substantially completed within twelve months of such beginning, (Ord 2708, 1997; Ord 2599 §2, 1994; Ord 1356 §1 (part), 1971; Ord 1212 §1 (part), 1969; prior code §33.1102(D) (6)), 19.68.030 Exterior noise limits. A. Maximum permissible sound levels by receiving land use. 1. The noise standards for the various categories of land use as presented in Table III and set forth in terms defined in the city land use code set forth in Chapter 19.04, shall, unless otherwise specifically indicated, apply to each property or portion of property substantially used for a particular type of land use reasonably similar to the land use types shown in Table III. Where two or more dissimilar land uses occur on a single property, the more restrictive noise limits shall apply, 2. Additional land use classifications may be added by action of the city council to reflect both lower and higher existing ambient levels than those shown, (R 12/94) .1.J.H'" A 7-.31 3, Where doubt exists when making identification of receiving land use, the þlaF.l.BiR~ àiyeet.er director of Dlannina and buildinq may make an interpretation. 4, No person shall operate or cause to be operated, any source of sound at any location within the city or allow the creation of any noise on property owned, leased, occupied or otherwise controlled by such person, which causes the noise level to exceed the environmental and/or nuisance interpretation of the applicable limits given in Table III, 5, a.Environmental noise shall be measured by the equivalent sound level (Leq) for any hour. b.Nuisance noise shall be measured as a sound level not to be exceeded at any time. c.Sound levels by receiving land use shall be measured at the boundary or at any point within the boundary of the property affected, d,Fixed location public utility distribution or fixed transmission facilities, located on or adjacent to a property line shall be subject to noise level limits of this section measured at or beyond six feet from the boundary of the easement upon which the equipment is located, B, Corrections to exterior noise level limits. l- If the noise is continuous, the Leq for any hour will be represented by any lesser time period within that hour. Noise measurements of a few minutes only will thus suffice to define the noise level. 2, If the noise is intermittent, the Leq for any hour may be represented by a time period typical of the operating cycle. Measurement should be made of a representative number of noisy/quiet periods. A measurement period of not less than fifteen minutes is, however, strongly recommended when dealing with intermittent noise. 3, In the event the alleged offensive noise, as judged by the enforcement officer, contains a steady, audible sound such as a whine, screech or hum, or contains a repetitive impulsive noise such as hammering or riveting, the standard limits set forth in Table III shall be reduced by 5 dB, 4. If the measured ambient level exceeds that permissible in Table III, the allowable noise exposure standard shall be the ambient noise level. The ambient level shall be measured when the alleged noise violations source is not operating. (Ord 2101 §3 (part) , 1985) , 19.68.070 Exceptions. A, The city council is authorized to grant exceptions for any environmental (R 12/94) ~ 7-~ noise provision of this title, subject to limitations as to area, noise levels, time limits, and other terms and conditions as the city council determines are appropriate to protect the public health, safety, and welfare from the noise emanating therefrom. This section shall in no way affect the duty to obtain any permit or license required by law for such activities, nor shall it apply to nuisance noises, B. Any person seeking exceptions pursuant to this section shall file an application with the plaRRiR~ àirceter director of clanninq and buildinq. The application shall be submitted and processed in the same manner as conditional use permits. The application shall contain information which demonstrates that bringing the source of sound or activity for which the exception is sought into compliance with this title would constitute, an unreasonable hardship on the applicant, on the community, or on other persons. (Ord 2101 §3 (part), 1985), 19.68.078 Enforcement. A. Violations and penalties. 1. It is a violation for any property owner(s) and/or person(s) in control of property to permit, or cause, a noise disturbance to be produced upon property owned by them or under their control. 2. It is a violation for any person or persons to create or allow the making of noise disturbance as provided by this title at any location in the city, 3. The violation of this title by making or allowing an environmental noise disturbance shall be an infraction. Enforcement of environmental noise violations shall follow the procedures set forth in the land use code for zoning violations. 4. The violation of this title by making or allowing a nuisance noise disturbance shall be an infraction. Subsection d. provides for the method of enforcement wherein noise may be in violation of both the environmental and nuisance noise disturbance provisions. B. Environmental noise. 1. Classification of environmental noise. The enforcement officer shall determine that any given obtrusive noise condition that falls within the definition of environmental noise disturbance, pursuant to Section 19.66.072 is an environmental noise. The enforcement officer may use Appendix A, attached to ordinance codified in this title, as an aid in making such determinations. The ~laRRiR3 àiyeeEsE director of clannina and buildinq may make I1determinations" classifying noise sources not specifically mentioned in Appendix A, 2. Responsibility. The E~ilàiR3 aRà R8~8iR3 àirceter clannina and buildinq director shall be responsible for investigation and enforcement of environmental noise disturbances. (R 12/94) ~ ~ 7--(1 3. Guidelines. The ÈH:1ilàiR§ aRà fl6tlsiR§ àireetsl: Dlannina and buildina director may, from time to time, promulgate guidelines for administration and enforcement of the provisions of this title pertaining to noise violations. 4. Abatement shall terminate enforcement action. No complaint or further action shall be taken in the event that the cause of the violation has been removed, the condition abated or fully corrected within the time period specified in a notice of violation issued by the enforcement officer. C. Nuisance noise. 1. Classification of Nuisance Noise. The chief of police shall determine that any given obtrusive noise condition that falls within the definition of nuisance noise disturbance, pursuant to Section 19.66.072 is a nuisance noise. The chief of police may use Appendix A, hereto, as an aid in making such determinations. At the request of the chief of police, the ~laRRiR§ àiEeeter director of Dlannina and buildina may make 1Tdeterminationsll for classifying nuisance noise sources not specifically mentioned in Appendix A. 2, Responsibility, The chief of police shall be responsible for investigation and enforcement of nuisance noise disturbances. 3. Guidelines. The chief of police may, from time to time, promulgate guidelines for administration and enforcement of the provisions of this title pertaining to nuisance noise violations. 4. Abatement Order. The officer responsible for enforcement of any provisions of this section may issue an order requiring abatement of a sound source alleged to be in violation within a reasonable time period and according to guidelines which the chief of police may prescribe. Such orders of abatement may be verbally administered. Failure to comply may be held as a violation of this title. D. Enforcement of noise disturbances that are both environmental and nuisance. 1. Where investigation reveals that offending noise violates both the environmental noise regulations and the nuisance noise regulations, the offense shall be enforced as a nuisance noise violation unless the chief of police makes a specific finding that the environmental noise regulations more nearly apply, in which case the environmental noise regulations shall apply, 2. Nothing contained in this provision shall limit the city's ability to prosecute noise violations as both environmental and nuisance noise. E. Violations: Additional remedies--Injunctions. As an additional remedy, the operation or maintenance of any device, instrument, vehicle or machinery in violation of any provision of this chapter which operation or maintenance causes or creates sound levels or vibration exceeding the allowable limits as specified in this chapter is declared to be a public nuisance, and may be subject to abatement summarily by a restraining order or injunction issued by a court of competent jurisdiction. Additionally, no provision of this title shall be construed to impair any common law or statutory cause (R 12/91) .;ó ? ___.1/ .1. of action, or legal remedy therefrom, of any person or injury or damage arising from any violation of this title or from any other law. (Ord 2101 §3 (part), 1985), 19.83.005 De MinimuB Development. The director of planning and buildinG may issue a written waiver from the coastal development permit requirements of this article for any development that is de minimis. A proposed development is de minimis if the director of planning and buildinq determines, based on a review of an application for a coastal development permit, that the development involves no potential for any adverse effect, either individually or cumulatively, on coastal resources and that it will be consistent with all applicable objectives, policies, and standards of the certified Local Coastal Program. The determination shall be made in writing and based upon factual evidence. 1. De minimis waivers shall be permitted only in the non-appealable area of the city's coastal development permitting jurisdiction when no local public hearing is required. 2. The director of planning and buildinq will consider the following types of projects for possible permit waivers: a. Projects which would have been placed on the consent calendar without special conditions; b, Projects fully consistent with the certified Local Coastal Program (LCP) and for which all applicable policies of the LCP are objective in nature, such that staff does not have to exercise its judgment as to satisfaction of subjective criteria; c. Projects located in areas where similar projects have been approved as a routine matter without conditions or opposition. 3. The following projects will not be considered for possible waivers: a. Projects which involve questions as to conformity with the certified LCP, or which may result in potential impacts on coastal resources and public access; b. Projects with known opposition or probable public controversy; c. Projects which involve divisions of land including condominiums. 4. If, upon review of the coastal development permit application, the director of planning and buildinq determines that the development is de minimis, the applicant, shall post public notice of the de minimis waiver on the property for at least seven calendar days prior to the final decision granting the waiver. Notice of intent to issue a de minimis waiver shall also be made to the Coastal Commission and to persons known to be interested in the proposed development in the following manner: (R 12/94) .J,3.l-'7- f(' 7-- Ý3 Within ten (10) calendar days of accepting an application for a de minimis waiver or at least seven (7) calendar days prior to the decision on the application, the Director of Planning shall provide notice, by first class mail, of pending waiver of permit requirements. This notice shall be provided to all persons who have requested to be on the mailing list for that development project or site or for coastal decisions within the local jurisdiction, to all property owners and residents within 100 feet of the perimeters of the parcel on which the development is proposed, and to the coastal commission. 5. The notice shall contain the following information: a. A description of the proposed project and location; b, A statement that the development is within the coastal zone; c, The date of filing of the application and the name of the applicant; d. The number assigned to the application; e, The date of the hearing at which the waiver may become effective; f. The general procedure concerning the submission of public comments either in writing or orally prior to the decision; g. A statement that a public comment period of sufficient time to allow for the submission of comments by mail will be held prior to the decision. The director of planning and buildinq shall report to the city council at its next available public meeting those projects for which waivers are proposed, with sufficient description to give notice of the proposed development to the city council. A list of waivers issued by the director of planning and buildinq shall be available for public inspection at the public counter of the community development department and at the city council meeting during which any waivers are reported. A waiver shall not take effect until after the p¡laRRiR§ à.ircstsr director 'of olanninq and buildinq makes his/her report to the city council, If one-third of the city council (two members) so request, such issuance shall not be effective and, instead, the application for a coastal development permit shall be processed in accordance with the provisions of this article. (Ord 2532, 1992; Res, 13957, 1989; Res, 11903, 1985), 19.85.008 Parking Requirements. 1. General Requirements: The provisions of Chapter 19.62 of the Chula Vista Zoning Ordinance, Title 19 of the Chula Vista Municipal Code, shall be applicable to off-street parking and loading areas in the Bayfront area. These provisions generally control construction and development and design standards of off-street parking areas. The number of spaces required for designated uses shall be that designated below. In the event that there is no precise correspondence in the use classifications with the common names used in this section, the (R 12/91) Y 7/11' rlanniR§ ÐiEeeEer Director of Plannino and Buildino shall have the authority to designate the requirements and the common names for proposed uses shall generally be deemed to control. 2, Vehicle Parking Standards: Business and professional offices: 1 space per 300 square feet of floor area; minimum of 4 spaces; Dance, assembly, or exhibition halls without fixed seats: 1 space per 50 square feet of floor area used for dancing or assembly; Dwellings, multiple: 1.5 spaces per studio or 1 bedroom unit; 2 spaces per two bedroom ; 2.5 spaces per three bedroom or larger unit ( includes 0,3 space per unit guest parking); Hotels, motels: 1 space for each living or sleeping unit, plus 1 space for every 25 rooms or portion thereof; Manufacturing plants, research & testing laboratories: 1 space per 1.5 persons employed at anyone time in the normal operation of the plant or 1 space per 800 square feet of floor area, whichever is greater; Medical and dental offices, clinics: 1 space per 200 square feet of floor area; minimum of 5 spaces; Public park/open space: 1 parking place for every 10,000 square feet of park or accessible open space; Restaurants, barsl and night clubs: 1 space per 2,5 permanent seats, excluding and dance floor or assembly area without fixed seats which shall be calculated separately at 1 space per SO square feet of floor area; Restaurants - drive-inl snack stands or fast food: 15 spaces minimuml or 1 space per 2.5 permanent seats, whichever is greater; Retail stores: 1 space per 200 square feet of floor area; Sports arenas I auditoriums, theaters: 1 space per 3,5 seats of maximum seating capacity; Wholesale establishmentsl warehouses, service and maintenance centers: 1 space per 1,5 persons employed at anyone time in the normal operation of the plant or 1 space per 1000 square feet of floor area, whichever is great- er; Uses not listed: as required by Chula Vista Zoning Ordinance 3. Bicycle Parking Standards Bicycle parking spaces shall be provided for developed uses according the following schedule. Only those uses listed below are required to provide bicycle parking, Bicycle parking facilities shall be fixed storage racks or devices designed to secure the frame and wheel of the bicycle, Business and professional offices (over 20,000 square feet of gross floor area) : 5 spaces; (R 12/91) ¥ /'" 7~rÞ Shopping center (over 50,000 square feet of gross floor area): 1 space per 33 automobile spaces required¡ Fast food restaurant, coffee shop, or delicatessen: 5 spaces; Other eating and drinking establishments: 2 spaces¡ Commercial recreation: 1 space per 33 automobile spaces required. 4, Shared Parking Where uses have predictable time cycle parking demands and where supported by appropriate traffic/parking studies, shared parking may be utilized as a means to reduce total parking lot area. The criteria and standards provided in Shared Parking published by the Urban Land Institute (ULI) should be utilized to assess parking needs and formulate shared parking agreements. Any use which intends to meet its parking requirements using shared parking shall be subject to the approval of a Conditional Use Permit as provided for in Chapter 19.14 of the Chula Vista Zoning Ordinance, Title 19 of the Chula Vista Municipal Code, and shall be further guaranteed through the execution of a deed restriction and a long-term, binding agreement. The approval of the Conditional Use Permit may, among other requirements, require a use, business, or activity to only operate within restricted hours. 5. Concealed Parking Within the Central Resort District and the Residential High District of the Midbayfront Subarea 75% of the required parking shall be provided in subterranean or concealed parking structures. Concealed parking is when the parked vehicles can not be seen by the public using public streets, bike lanes and paths, pedestrian walkways, public parks, and public access open spaces. 6, Landscaped parking in SDG&E Right-of-way Any landscaped parking in the SDG&E ROW north of Lagoon Drive shall be available on weekends and evenings for use by coastal visitors. The parking needed for visitors to the Nature Interpretive Center or for any park or public open space areas shall be provided in areas signed and exclusively reserved for such visitors. This restriction must be enforced during the operating hours of the Nature Interpretive Center and public parks, Public parks shall be open from dawn until 11 p,m, daily unless the operating hours are revised through the local coastal program amendment process. Parking for park and public open space use shall be provided at the rate of one space per each 10,000 square feet of park or open space area, excluding the National Wildlife Refuge, (Ord 2546, 1993; Ord 2532, 1992; Ord 2168 §1 (part) , 1986; Res, 11903, 1985) , 29.91.9)9 Sela:E' 1.ate:E' keater 'I'rs'l'l'1:!lèiB§. ~"'~ll He.. :E"eaiàential I:lFlits shall iRelaàe ~lumBiR§ 8~eeifieall) elesi§RE:à te aIls.. 'ERe lat.er iRstallatieR sf a 6) 6 tem ..hicR l:itilisea 6slar eRE::J:§) a6 the (R 12/91) ~ ? ..- r"V- ]?rimar) ffiE:aRS ef keatiR!! àsmestie ]?etaele '.:ater. :He suilàiR!! permit Elaall se iss~eà ~aless ËRe ]?l~iH!! re~ireà ]?tlrstiaat te tRis seetisn is iaàieateà ea the Bl:lilàia§ {31aas. r:l:e131u1T1l3in§ shall E:J(teRà tRESI:l§ÈL tÈLe Eesf ..REa tflE sle}?E ef 'tRe reef is less than f01:lr il"lE!fleS aFlà t..el,e iaeRes aRà ..aeE the raef s6yeriR§ is of ala) sr e6Rsrete tile. rrepluffiBiR§ piJ?êS feE àemêstiE! selaE het ..atEE Reatia~ sHall Be iRs~lateà. Tkis seeËisR sHall aþpl) eRl) te theBe residential ei\:E:lliR§ tiRita fer '.:BiaB a Ð"ilàiR!J !'a!'flÜt ·.:aa "!,!,liaà fer aftar tBB affaeti'¡a ..ate ef tBe eràiRaRaa aàe!'tiR!J tBia aBa!'tar, E](E!eI?tisa. The pre. iBisES af this eha}?tcr eaR BE FfIedifieà eE ..ai.ed ..kea i't eaR Be satiafaeterily àemsEstrateà te tflE Bl:lilàil"l§ effieial 'that Eke asIa£' J?EeJ?I~mi9iR§ is i1'Rf3:1:aetieal àtia te sRaàiR§, sailàiR§ erieR'tatisR, es:astrl:lE!tisa eSFlBtrail"lts sr eel"lfi§~rati8:a ef the parecl. (Orà 197) § 1 (J?art) , 1982. ) Presented by Approved as to form by ~ . . Robert Leite , Director of Planning and Building h:\shared\attorney\pln&bld,ord (R 12/91) jØ' 7~f'? COUNCIL AGENDA STATEMENT ITEM ð MEETING DATE May 25.1999 ITEM TITLE: RESOLUTION /f'l7t? Amending the FY 1998-99 Insurance Budget and appropriating funds therefor SUBMITTED BY: Risk Manager~ C;ty Attom,yq·"'r", M REVIEWED BY: CITY MANAGE~~ ...--7 (4/5th Vote: YesX No_> This action will appropriate funding for payment of previously authorized claim settlements and expenditures, RECOMMENDATION: Approve the resolution, BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: During Fiscal Year 1998-99, the City Attorney's Office and Risk Management have been involved in defense of an unusually large number of lawsuits against the City, several of which have proceeded to trial. The volume of litigation has not only been heavier than normal it has also involved highly complex issues, (Le" employment litigation, construction delay cases, etc), By nature, these lawsuits require expenditures to defend the City through the use of outside counsel and highly specialized expert services beyond "normally" expected litigation costs. It is now necessary to appropriate additional funding of $225,000 to cover the expenses and settlements previously authorized, and to continue normal operations through the end of the fiscal year. In addition to the above appropriation, $47,700 needs to be appropriated for settlement of a suit brought against the City by San Diego Gas & Electric in connection with the February 6, 1998, sink hole on Malta Avenue, In order to be reimbursed the Federal Emergency Management Association (FEMA); this settlement needs to be made from the Storm Drain Revenue Fund (versus the General Fund), FISCAL IMPACT: Upon Council authorization, a total of $272,700 will be appropriated; $225,000 from the unappropriated General Fund balance to the Insurance Budget (Account 100-0700-5442), and the sum of $47,700 will be appropriated from the available fund balance of the Storm Drain Revenue Fund (Fund 227) to Account 227-2272-5441 for payment of the San Diego Gas & Electric settlement JSIMC-A:\Appropriating Funds to Ins Budget May 25.doc - 8'~/ RESOLUTION NO, /9'/70 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 1998-99 INSURANCE BUDGET AND APPROPRIATING FUNDS THEREFOR WHEREAS, during fiscal year 1998-99, the city Attorney's Office and Risk Management have been involved in the defense of an unusually large number of lawsuits against the city, several of which have proceeded to trial; and WHEREAS, the volume of litigation has not only been heavier than normal, it has also involved highly complex issues; and WHEREAS, these lawsuits require expenditures to defend the city through the use of outside counsel and highly specialized expert services beyond "normally" expected litigation costs; and WHEREAS, it is now necessary to appropriate additional funding of $225,000 to cover the expenses and settlements previously authorized, and to continue normal operations through the end of the fiscal year; and WHEREAS, an additional $47,700 needs to be appropriated for settlement of a suit brought by SDG&E in connection with the February 6, 1998 sink hole on Malta Avenue; and WHEREAS, in order to be reimbursed by the Federal Emergency Management Association (FEMA) , the settlement needs to be made from the Storm Drain Revenue Fund, NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby amend the FY 1998-99 Insurance Budget by appropriating $225,000 from the unappropriated General Fund balance to the Insurance Budget (Account 100-0700-5442) , BE IT FURTHER RESOLVED that the sum of $47,700 will be appropriated from the available fund balance of the Storm Drain Revenue Fund (Fund 227) to Account 227-2272-5441 for payment of the San Diego Gas & Electric settlement, Presented by Approved as to form by Teri Enos, Risk Manager H:\home\lorraine\ra\approp.ins g--;L COUNCIL AGENDA STATEMENT Item 9 - Meeting Date 5/25/99 ITEM TITLE: 11. Resolution / 1..z.~t;l Approving an amendment to Council Policy No. 505-02 regarding the use of early liening procedure ß. Resolution / 9.2.8"'/ Approving the form of the Second Amended Acquisition/Financing Agreement for Assessment District No. 97-2 (Otay Ranch, Village One) C. Resolution / 9 2. 8".2- Authorizing and providing for the issuance of limited obligation improvement bonds for Assessment District No. 97-2 (Otay Ranch, Village One), approving the form of Bond Indenture, Bond Purchase Agreement and other documents and authorizing certain actions in connection therewith ~ SUBMITTED BY: Director of Public Works.@> i Director of Finance ~ REVIEWED BY: City Manager ~ ~ ./? (4/5ths Vote: YecNoX) Assessment District 97-2 (AD 97-2) will provide public funding for the acquisition of public improvements within Otay Ranch Village One. The district was formed under the Municipal Improvement Act of 1913 (1913 Act), Current Council Policy No. 505-2 requires that a project be fully completed and accepted by the City prior to acquisition. The amended policy will allow for the acquisition of complete discrete components of a project Said amended policy is incorporated in the proposed amendment to the AcquisitionlFinancing Agreement which establishes the procedure for acquiring the improvements from the developer. Tonight, Council will also be considering authorizing the issuance of bonds and approving certain related documents for AD 97-2. RECOMMENDATION: That Council: · Approve the amended Council Policy 505-02 "Early liening assessment procedure and origination charge policy" · Approve the Second Amended Acquisition /Financing Agreement for Assessment District No. 97-2 (Otay Ranch, Village One) · Adopt the resolution authorizing the issuance of Bonds, approving the form of the Bond Indenture, Bond Purchase Contract and other documents for Assessment District No, 97-2 and authorizing certain actions in connection therewith. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: The Acquisition / Financing Agreement for AD 97-2 was originally approved by Council on June 17, 1997. On February 3, 1998 Council held a public hearing and established Assessment District No. 97-2 (AD 97-2). Later, on February 10, 1998 Council approved the amended Acquisition / Financing 9~1 Page 2, Item_ Meeting Date 5/25/99 Agreement which provided for the inclusion of a right turn lane in Telegraph Canyon Road as an eligible district improvement, Recently, on October 6, 1998, Council approved a Change and Modifications to AD 97-2, which modified the district boundary to conform to a proposed land swap between the Otay Ranch Company and McMillin Otay Ranch. The 1913 Act is a financing mechanism which allows the financing of the acquisition or construction of public infrastructure improvements from the proceeds of assessment districts bonds which are repaid from annual assessment installments collected from the property owners with their property taxes. There is no direct cost to the City, AD 97-2 is an acquisition district wherein the developer constructs the public improvements and the City acquires them upon completion with funds derived solely from the sale of bonds. Area of Benefit The current boundary of AD 97-2 encompasses all parcels of Village One located east of Paseo Ranchero, excepting those parcels owned by McMillin Otay Ranch (see Exhibit A), Improvements In accordance with City Policy, only backbone improvements providing full service to the Otay Ranch Village One are authorized to be acquired from the bond proceeds in AD 97-2, The developer will privately finance the construction of the additional facilities required to serve the subdivision, The public improvements proposed to be financed through this acquisition proceeding include: 1. Paseo Ranchero (four of six lanes) from Telegraph Canyon Road to East Palomar Street 2, East Palomar Street from Paseo Ranchero to the Eastern Boundary of AD 97-2, 3, Monarche Drive around Park P-l 4, Right turn lane at the intersection of Telegraph Canyon Road and Paseo Ranchero, Confirmed Assessments The total amount assessed to the district is $13,778,405, The confirmed assessments for AD 97-2 are as follows: TOTAL Single Family ($/OU) $ 6,325 Multifamily ( $/OU) $ 4,429 Commercial ($/acre) $ 111,000 Community Purpose Facility $ 36,643 (CPF) ($/acre) Citv's Financial Criteria Value to Lien Ratio: City policy establishes that the value of the property, as determined by an independent appraiser retained by the City, shall be a minimum of 3 times the total lien placed on said property, An appraisal (dated March 15, 1999) was conducted on the property by Robert Backer. The lien ratio analysis (see Exhibit B) shows that all parcels would meet this criteria, 9~,2 Page 3, Item_ Meeting Date 5/25/99 Maximum Tax: A preliminary calculation (see Exhibit C), using estimated house prices, indicates that the parcels wi!bin the district would meet the maximum 2% aggregate tax, A final test will be performed at escrow closing using the actual sale price of the house, The AcquisitionlFinancing agreement requires that at or prior to each closing of escrow, the escrow company shall apply a "calculation formula" previously approved by the City Engineer to determine the aggregate of regular County taxes, Mello- Roos taxes, and assessment installments. If!be 2% limit is exceeded, the developer would be required to provide cash to buy down the assessment to an amount sufficient to meet the 2% tax ceiling, Compliance with this procedure would ensure !bat the aggregate tax to be paid by the purchaser of the house meets the City's criteria. Escrow Account The Olympic Parkway Agreement imposes certain limitations on the development phasing of the properties within Otay Ranch SPA One (see Exhibit D). The agreement requires that the obligations for Stages 3a and 3b shall be met before additional EDUs beyond 1,094 EDUs are approved for the Otay Ranch Company Villages 1 and 5. Said obligations are: I) Issuance of environmental permits by the Resource Agencies 2) Approval of grading plans and bonding for the following facilities: * Olympic Parkway - Brandywine to SR-125 * La Media - East Palomar to Olympic Parkway * Paseo Ranchero - East Palomar to Olympic Parkway * East Palomar - Santa Rosa to Olympic Parkway 3) Approval of the Poggi Canyon maintenance agreements Compliance with Stages 3a and 3b obligations is essential for constructing those portions of Olympic Parkway that are needed to fully develop the AD 97-2 properties, At this point, it is uncertain if environmental clearance can be obtained by early June, 1999, as anticipated. On the other hand, the developer has requested the City to expedite the bond sale and purchasing of improvements. The Underwriters (Stone & Youngberg) have recommended proceeding with the bond sale in the full amount of$12,240,000, but to escrow a portion of !be bond proceeds equal to the aggregate amount ($7,015,000) of the assessment liens on those properties which can not develop until the requirements of Stages 3a and 3b are met. The remaining $5,225,000 may be used for acquiring improvements, funding the Reserve Fund, paying the Underwriter's discount and consultant's fees, and providing for a Bond Redemption premium of $210,450 (which is needed if the escrow bonds need to be called), The developer concurs with the Underwriter's proposal. Staff considers this a reasonable solution and recommends Council approval. The Bond Indenture, which is also before Council tonight, requires !bat $7,015,000 of the bond proceeds be deposited in an escrow account. Said document also authorizes !be Director of Finance to release said escrow funds upon receipt of a written certificate of the City Manager, or his designee, stating that the obligations for Stages 3a and 3b have been met. Resolutions By approving the proposed resolutions, Council will be accomplishing the following: The "Resolution approvinl! the amended Council Policv 505-02 (Early lieninl! assessment procedure and oril!ination chafl!e policv)" will allow for the acquisition of complete discrete components of a Project. 9-3 Page 4, Item_ Meeting Date 5/25/99 Current Policy (see Exhibit E) requires that a "project" be fully completed and accepted by the City prior to acquisition, Said Policy defines "project" as all the improvements within a particular street or easement including water, drainage, sewer, drainage, and utilities. The amended policy establishes that Council may, at its sole discretion, approve a waiver or deviation from the policy in its consideration of approval of an AcquisitionlFinancing Agreement to authorize the acquisition of discrete components of a "project", Under the amended policy, portions of a road that can stand alone (grading & drainage, Paving I Utilities, Landscaping) may be acquired separately. The amended policy also states that Council may condition the acquisition of said discrete components as the City Council deems necessary to insure the financial integrity of the assessment district. The developer contends that a reimbursement schedule based on discrete components would greatly improve their construction cash flow. Staff considers that the proposed policy would provide enough flexibility by I) leaving the final decision to Council on a case-by-case basis, and 2) allowing to impose conditions on the acquisition of discrete components. Council approval of the "acquisition by discrete components" and applicable conditions would be memorialized in the corresponding Acquisi- tion/Financing Agreement. The "Resolution Authorin<I the Issuance of Bonds and AD1Jroving the Fonn of Certain Related Documents" authorizes the issuance oflimited obligation bonds, pursuant to the Improvement Bond Act of 1915 in a principal amount of $12,240,000. In addition, the resolution approves the fonn of the following documents: * The Bond Indenture between the City and the Fiscal Agent, US Bank Trust National Association, that sets forth the tenns and conditions relating to the issuance and sale of the bonds. The Indenture also establishes the Escrow Account and the conditions to be met for releasing the funds deposited in said Escrow Account. * The Bond Purchase Contract. On October 7, 1997, Council approved Resolution No, 18787 appointing Stone & Youngberg and Merrill Lynch as the underwriting team for marketing the bonds of AD 97-2, This Bond Purchase Contract authorizes the sale of bonds to Stone & Youngberg LC acting as lead underwriter on behalf of itself and Merrill Lynch. The underwriter's discount for this negotiated sale is not to exceed 2% of the total bond amount which translates into a fee not to exceed $244,800. * The Preliminary Official Statement describing the Assessment District and type of bonds, including tenns and conditions thereof, for the bond holders. * Continuing Disclosure Agreement between the City and U.S, Bank Trust National Association, as dissemination agent, pursuant to which the City is required to disclose certain financial infonnation on an annual basis regarding the Assessment District and the Bonds including but not limited to: · Payment delinquencies · Bond Calls · Rating changes · Other events reflecting financial difficulties of AD 97-2 Appendix D ofthe Preliminary Official Statement contains the Continuing Disclosure Agreement. c¡~r Page 5, Item_ Meeting Date 5/25/99 It should be noted that Council would only be approving the form of the aforementioned documents. The proposed resolution authorizes the Director of Finance to approve the final form and to execute such documents on behalf of the City following review by and consultation with the City Attorney and Bond Counsel. No additions or changes in the documents are permitted which would result in the annual interest rate on the bonds to exceed 7% or in the purchase price for such bonds to exceed 98% (excluding original issue discount, if any). The "Resolution ADDroving: the Second Amended Acquisition / Financinl! Ag:reement" will amend the current agreement to reflect the aforementioned policy change allowing for acquisition of complete discrete components of a "project". The developer proposes (see Exhibit F) that the City reimburse 75% of the total cost of the drainage, paving, utilities, and landscaping improvements upon the determination by the City Engineer that those improvements have been installed per approved plans with required City inspections. Those facilities may not be functional, at that time, and certain activities (i.e" testing, completion of punch list, preparation of as-built drawings) may still be pending. The 25% final payment will be made once all items of the project are fully completed and accepted by the City (grading is the exception where I 00% rather than 75% is reimbursed at the time the City Engineer determines the grading and drainage has been installed per plans). The agreement also conditions the purchase of said discrete components to developer's compliance with all the applicable conditions and obligations imposed on the property within AD 97-2 pursuant to the land use entitlements approved by the City, including but not limited to, payment of all applicable fees, dedication of rights-of-way or other property (i.e., parks, open space, etc.), payment of assessment installments or special taxes, and construction of all applicable public improvements, Staff has reviewed the proposed agreement and believes that 1) the 25% payment retention, and 2) the condition requiring compliance with approved land use entitlements will provide enough security to guarantee completion of the improvements while insuring the financial health of the district. The agreement is also being modified to impose the 2% maximum tax requirement and the associated buy down of the assessment when required to the builder of the home, Home builders and not the developer would be obligated to keep the annual debt of each home below 2% of the home's value at the close of escrow. The City retained the firm of Brown, Diven, Hessel & Brewer as Bond Counsel for AD 97-2, They already reviewed and approved the form of the proposed agreement. FISCAL IMPACT: Otay Ranch Company will pay all costs associated with the formation of the district and will be reimbursed once bonds have been sold, The City will receive the benefit of full cos t recovery for staff time spent for the formation of the district. Exhibits: A- Boundary Map B, Value to Lien Ratio C- 2% Maximum Tax D- EDUs Allocation E- Council Policy No.505,02 F- Reimbursement Schedule May 20, 1999 (9:33am) H:\HOMEIENGINEER\AGENDA \97,2BSIO. 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""" ¡;;¡¡....... - ... - .- - .... =.0 ãj =e ãj =.0 ..Q~ ~\Ó ~ '"'~. >$> '"'~ >- I'.J~ =.cao~ 6 = O·¡: = 0 = :': 0 r.fj 00 ¡.,.",¡ :> =-= è5..:s =-= 5.>-. =-= .,.=to;..:: ca~ UJ -- U c.- - -- tf)........._ Q - .;: 5 Q.) .-::.-:::::::" .- tf) ::: = (11 E Q ~, _tf) ~~ _u...~ -Q.)-'-_ z c....-c- < ~ ~ .~ ~ E =:J I ::: Q) ~ C .- f5 ~ ~ ¡.., U Q.) ~ w >-...w ;>~E5E f ~ OZ~ 2..... N Z .. ~ '-- t'-- c.. Q) ::: c.. ( ) "'!I: w "." ~ ........ - .... .... 0 .... en 0\ ¡¡j - . 9~ï -'-u~" ..- ::.. :E ~ r":: ~ .= -= : ~ ~ ~ --..-. r- ~;; ""'"" - N t""') ~ .. - --------- * ..... = Exhibit E Council Policy No. 505-02 COUNCIL POLICY CITY OF CHULA VISTA SUBJEcr: EARLY LIENING ASSESSMENT PROCEDURE POLICY EFFEcrlVE MID ORIGINATION CHARGE POLICY NUMBER DA1E PAGE 505-02 18-88-91 1 OF 3 ADOPTED BY: Resolution No, 16367 I DA1ED: 199891 . BACKGROUND The City Council adopted Ordinance No. 2397 ("Chula Vista Version of the 1913 Act") which modified the State version of the 1913 Act to penn it the City to lien assessments against subject property prior to the complerion of the infrastructure improvements ("Early Liening Procedure"). On October 9, 1990, the City Council, at a public hearing, authorized the imposition of a 1% Origination Charge imposed on all assessment district proceedings in which the City engages. PURPOSE It is necessary to establish a policy to guide staff in implementing said Ordinance No. 2397, and the use of the Early Liening Procedure permitted therein, It is necessary to establish a policy to guide staff in imposing said Origination Charge recognizing that the origination charge is an acknowledgment of the City allowing the Use of its bonding capability, POLICY RE: Use of Chula Vista Version of the 1913 Act. 1. Assessment districts financing should only be used to finance the cost of "backbone" infrastructure, "Backbone" infrastructure, shall, for the purposes of this policy, mean infrastructure improvements that are of a general, overall benefit to the entire properties which are, or will be, the subject matter of the entire district. By way of example, such items shall include: A Arterial and collector streets B. Transmission-type utility facilities It shall not include local property access roads within residential subdivisions, and shaU not include distribution utility facilities such as water and seWer laterals and local distribution mains. 2, Deposit to cover estimate of staff costs. In any developer-initiated assessment district proceeding, the developer shall deposit with the City a sum of money ("Processing Deposit") which the Director of Public Works shalJ reasonably detennine represents the approximate cost to which the City will be put, including all Staff time, out-of-pocket expenses, overhead, consultant expenses, in processing the developer's application for special assessment district financing. 9-/ .z COUNCIL POLICY CiTY OF CHUlA VISTA - f--.. SUBJECf: EARLY UENING ASSESSMENT PROCEDURE POLICY EFFECfIVE AND ORlGINATION CHARGE POLICY NUMBER DATE PAGE 505-02 1t1-tlH-íiJ 2 OF 3 ADOPTED BY: Resolution No, 16367 DATED: 1898 9I RE: Use of the Earlv Lieninlt Procedure. 1- When Early Liening Procedure is to be Used. Special Assessment District financing shall permit the use of the Early Liening Procedure in those cases where the backbone infrastructure would not othetwise be completed without such procedure prior to the time that the houses will be initially marketed. The purpose of this policy is to give full disclosure of all financing costs to the initial home-buyer prior to purchase of the property, 2. Contingency Permitted to be Financed. Since the assessments to benefitted land would be levied prior to the completion of construction, a contingency amount, not to exceed ten percent (10%) of the estimated costs of the un constructed improvements may be allowed to be financed and made a part of the assessed amount. 3. Developer Agreement to Absord Excess Costs. The developer must enter into an agreement which provides that, if the costs of the subject .)I~ infrastructure improvements exceed the amount of the financing made available by the sale of bonds (including such contingency as may be permitted by this Policy), the Developer shall be responsible for, and shall, absord the excess costs. 4. Assessments to be Adjusted to Reflect Cost Savings. If the final project costs are less than the estimated cost plus contingency, the assessments shall be adjusted downward. The costs associated with adjusting assessments shall be borne by the Developer, and he shall enter into an agreement to this effect. 5, Payment for Improvements. dless of the use of the Early Liening Procedure, payment for improvements unde cquisition and Fina Agreement shall not be made until all improvements for rticular project, as determined by 'rector of Public Works, are completed and ted by the City, and the assessment engineer has ce .. d the final cost thereof. A project shall be defined as all improveme in a particular street or easement including street improvements, sewer, drainage, and s, If more one project is being financed by one district, as defined and approved by ¡rector of Public Works, t rital relaease of funds can occur, as each project is com Any deviation of project definition sha roved by the Director of Public Wor or example, payment for a sewer in a future road right.oÎ-Way, which road is not fina the subject district, would probably be approved by the Director. ..1 9-/J I COUNCIL POLICY I CITY OF CHULA VISTA SUBJECT: EARLY LIENING ASSESSMENT POLICY EFFECTIVE PROCEDURE AND ORIGINATION CHARGE NUMBER DATE PAGE POLICY 505-02 ADOPTED BY: I DATED: 5, Regardless of the use of the Early Liening Procedure and exceDt as Drovided for below, the Davment of the Durchase Drice for the aCQuisition of anv imorovement Dursuant to ]'!!!j'ffient fðr ilDpf6vements limlef an Acquisition and Financing Agreement shall not be made until the construction of all improvements for a particular Proiect (as defmed in the followin!!: Dara!!:raDh) pf6jeet, 83 determined by the Direetar af Pt1ßlie '.Vark3, are has been completed and accepted by the City for the Duroose of Davin!!: the Durchase Drice for such imDrovements and the Director of Public Works , aHd tile assessffient eHgiHeef has certified or caused the certification of the final costs of such imDrovements thereðf. A ")Yroject;: shall be defined to mean as- all improvements which are located within a particular street or easement including but not limited to street improvements, sewer, water. drainage~!Iftà- utilities and !!:radin!!: and which are authorized to be aCQuired bv the Citv Dursuant to the ACQuisition and Financin!!: A!!:reement. If imDrovements within more than one !:project are authorized to be aCQuired throu!!:h an assessment district. then the imDrovements within each Proiect mav be aCQuired seDaratelv as all imDrovements within the Proiect are comDleted and acceDted bv the Citv and the final costs certified is BeiHg f:iHtlHeeà BY 6He àistriet, as àef:il'leà !Il'là !I ']'!r8veà BY tile Difeetðf 6f PuBlie Wðrks, theH ]'!!tftial fekase 6f filMS eaH ðeetlf, as eat:h ]'!f8jeet is c81Dpleteà, Minor Any deviation§, from the definition of a Proiect mav 6f ]'!wjeet àefiHitiGH shall be approved administrativelv by the Director of Public Works, For example, the Director of Public Works mav aDDrove the Davment of the Durchase Drice for the aCQuisition of payment ref a sewer line located in a future street read right-of-way the aCQuisition of which street is not authorized to be financed throu!!:h the assessment district , ',yhieh r8aà is oot f:i11tlHeeà BY tile slibjeet àistriet, ,,8t1là ]'!r8bably be !l 'pf8yeà BY the Direetðf, '1-/( I COUNCIL POLICY I CITY OF CHULA VISTA SUBJECT: EARLY LIENING ASSESSMENT POLICY EFFECTIVE PROCEDURE AND ORIGINATION CHARGE NUMBER DATE PAGE POLICY 505-02 ADOPTED BY: I DATED: The Citv Council mav, in its sole discretion, elect to deviate from or waive the foregoing policv in its consideration of the approval of an Acauisition and Financin!! A!!reement for an assessment district to authorize the pavment of the purchase price for each discrete component of a Proiect. i.e,. an individual improvement within a Proiect such as a sewer line within a Proiect which also includes street. water and draina!!e improvements, In electin!! to deviate from or waive the fore!!oin!! po1icv. the Citv Council may condition the pavment of the purchase price for discrete components as the Citv Council deems necessarv to insure the financial inte!!ritv of the assessment district financin!!, " 9 -/.5 Exhibit F Reimbursement Schedule .... - t;j f') '=1 I ;¡.i ~ '";>~ ~~ I ~- - - C'" :: == .....- Qtp-n fon~O ~.~~ ~ ~ t"" > c.....,J""':' tI.> 0 ~ O· .... 0 I» n - ... ~o... . =::1 e t:I 0 .. ~ ¡¡;....tot:: ~a,a .., c. "d ª co. ... "%j :: .", !!i 5' ... ;;¡ 0 ~'.. ~ - " " ' - .. . .. ¡¡; g '" .. II; - '" ... ~, r[ Q - e - õ .. ... - -, !!, - .... .. .., 3 ..... ... :: ... .. t:I 0 ~ Iiii ~ := t; " ... =c.a- ~ = '" - ... "" c. ë3 C'. ... - - ;'~. ñ. ~ ..... .. .... ~ S" 5° ~ -, tot:: t:I" ~ :.. " n '" .. .. = - foil e &Ii S "15 '" ~ ~ g 5 ... .., .. . i'¡¡: ~ l"!! ;:> i:¡ 8 [9: g ! n ="0I:l \0 ell .. - CIa - -.; ....c. = _. 0 .. ... .- = ~'W~' '::gq 2: ;¡,,= ~ n ~. .., o .. :0 := "'II ~ g-~ - rD 2: - .. ë" ~ 5'~ ;¡. Õ'Š' C" 2: 6 ¡;= c. - .... .... .... - = :: ~ 0 \.II '" '" 0 ... ~ - .."c.¡¡¡ 0 0 ... .. Z "" '" -. tII I;'J == n ;:s ! ;:I ... 0 gl»= !II ,~ :1 a :1 ; ~ i .. ¡;¡ ::. ~~ S' 5" "tI'J 0 ~ F"C 3 ~ :1 ~ë ... ¡ II> -"= !!to ~¡¡¡ - 6b ¡: ~ ;:¡ - :r..r¡ ~ _: .. . ~~ S' .... ¡¡, C'. II; ~ ~ ¡¡; ~. ~ a. g 0 - _n ;:I 8 œ .. ... =-a ¡; .. 0 '< ,8 8 - 5' ~ 11II .... *ëi!-= ., 8 r[ ~ - - ,-$ò. n~ :1 8 ¡; - :E ;.;¡: =. '" ñ ~ ~ Iõ .g E '" "" e: "'- ~ ... n a. ., =: " 15 ñ =-n_ ~ ¡; !~'g- -5'~ n r 5' ..... nO ~ CI' III _. ~. ~ .. "0 a ~ .. III Q.nO" .... gi i R !.¡ f s¡ g 1 .. [ .,... Q. I» 1:1 ,., "" ."! "'- III- IIfo ¡:¡¡. = -' 11II ::20 _. 0' ~ ;:; s:¡ ¡¡;>= t"" t"" t: ë¡; CI E. ." 8 -. -. = E¡:š .. CD 8 ;:I ;:I gQ œ -... :r :r ã' 2 (II ã' ~. ¡: i~ (II CD (II i OnJ '< 1:1 II; IS ;"I ... 9-/? RESOLUTION NO. /9J.f5cJ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, APPROVING AN AMENDMENT TO COUNCIL POLICY NUMBER 505- 02 REGARDING THE USE OF EARLY LIENING PROCEDURE WHEREAS, the City Council previously adopted Council Policy Number 505-02 (the "Policy") regarding the use of early liening procedure related to the establishment of assessment districts to finance public improvements required to serve new deveIopment within the City of ChuIa Vista; and, WHEREAS, the City Council desires to amend the Policy to permit the City Council to approve a deviation or waiver to the Policy requirement regulating the payment for the acquisition of public improvements so as to permit the payment for a discrete improvement within a project when considering the approval of an acquisition and financing agreement for the assessment district. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. The above recitals are all true and correct. SECTION 2. Paragraph 5 of City Council Policy Number 505-02 is amended to read as set forth in Exhibit A hereto which is incorporated herein by this reference. A copy of this amendment to the Policy shall be kept on file in the Office of the City Clerk. SECTION 3. This resolution shall become effective upon its adoption. Presented by Approved as to form by 0--1lA~~ John P. Lippitt John Kaheny Public Works Director City Attorney 9//-/ _._..__..._._.__._~~" EXHmIT A PARAGRAPH 5 OF COUNCIL POLICY NUMBER 505-02 AS AMENDED Regardless of the use of the Early Liening Procedure and except as provided for below, the payment of the purchase price for the acquisition of any improvement pursuant to an Acquisition and Financing Agreement shall not be made until the construction of all improvements for a particular Project (as defined in the following paragraph) has been completed and accepted by the City for the purpose of paying the purchase price for such improvements and the Director of Public Works has certified or caused the certification of the final costs of such improvements. A "Project" shall be defined to mean all improvements which are located within a particular street or easement including but not limited to street improvements, sewer, water, drainage, utilities and grading and which are authorized to be acquired by the City pursuant to the Acquisition and Financing Agreement. If improvements within more than one Project are authorized to be acquired through an assessment district, then the improvements within each Project may be acquired separately as all improvements within such Project are completed and accepted by the City and the finals costs certified. Minor deviations from the definition of a Project may be approved administratively by the Director of Public Works. For example, the Director of Public Works may approve the payment of the purchase price for the acquisition of a sewer line located in a future street right-of-way the acquisition of which street is not authorized to be financed through the assessment district. The City Council may, in its sole discretion, elect to deviate from or waive the foregoing policy in its consideration of the approval of an Acquisition and Financing Agreement for an assessment district to authorize the payment of the purchase price for each discrete component of a Project, i.e., an individual improvement within a Project such as a sewer line within a Project which also includes street, water and drainage improvements. In electing to deviate from or waive the foregoing policy, the City Council may condition the payment of the purchase price for discrete components as the City Council deems necessary to insure the financial integrity of the assessment district financing. 9,4~2 ----_._---,----_......__._.~ .. RESOLUTION NO, /9øZ~/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, APPROVING THE FORM OF THE SECOND AMENDED ACQillSITION/FINANCING AGREEMENT FOR ASSESSMENT DISTRICT NO. 97-2 (OT A Y RANCH, VILLAGE ONE) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CAUFORNIA, has, pursuant to the provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, by adoption of its Resolution of Intention, has undertaken proceedings to form and has formed a special assessment district for the purpose of financing the acquisition of certain works of improvement, together with appurtenances, such special assessment district known and designated as ASSESSMENT DISTRICT NO. 97-2 (OT A Y RANCH, VILLAGE ONE) (the" Assessment District"); and, WHEREAS, the City Council did previously approve the form of an Amended Acquisition/Financing Agreement (the" Amended Acquisition/Financing Agreement") by and between the City of Chula Vista and Village Development LLC (the "Developer") to establish the terms and conditions upon which the Improvements (as defined in the Amended Acquisition/Financing Agreement) would be acquired by the City; and WHEREAS, the City and the Developer desire to amend the Amended Acquisition/Financing Agreement by entering into the Second Amended Acquisition/Financing Agreement, the form of which has been presented to the City Council (the "Second Amended Agreement"). NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION L The above recitals are all true and correct. SECTION 2. The form of the Second Amended Agreement, herewith submitted, is approved substantially in the form submitted. The Mayor is hereby authorized to execute the final form of such agreement on behalf of the City. The City Manager, subject to the review of the City Attorney and Bond Counsel, is authorized to approve changes in such agreement deemed to be in the best interests of the City, approval of such changes to be evidenced by the execution of such agreement. PREPARED BY: APPROVED AS TO FORM BY: ~ ~~~O ~ John P. Lippitt John Kaheny Director of Public Works City Attorney 9lf-/ -,,~--"--_...._-_.._- 5/U/99 SECOND AMENDED ACQUlSITJONIFINANCL"IG AGREEME!'\, THIS SECOND AMENDED ACQUISITIONlFINANCING AGREEMENT (the "Second Amended Agreement") is made and entered into this _ day of 1999, by and between the CITY OF CHULA VISTA, a charter city duly organized and validJy existing under the ConstiulIion and laws of the State of California, (hereinafter referred to. as "City"), and OTA Y PROJECT, lLC, a California limited liability company, as successor to VILLAGE DEVELOPMENT lLC (hereinafter referred to as "Developer"), WHEREAS, the Developer has petitioned !he City to consider !he formation of a special assessment district under !he tenns and conditions of the "Municipal Improvement Act of 1913", being Division 12 of !he Streets and Highways Code of the State of California (the" 1913 Acn, for the acquisition of certain public improvements, together with appurtenan= and appurtenant work ,,~thin the jurisdictional limits of said City, said special assessment district known and designated as ASSESSMENT DISTRICT NO, 97-2 (OTAY RANCH, VILLAGE ONE) (hereinafter referred to as the "Assessment District"); and, WHEREAS, the City Council of the City (the "City Council") did undertake proceedings pursuant to the 1913 Act, l".!'ticle XIIID of the Constitution of the Staœ of California (",.l'J'!icle XIIID") and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) to consider the formation of and did fottI1 the Assessment DiStrict; and WHEREAS, Developer, in order to proceed in a timely way ,,~th the development of the property within the Assessment District (the "Project"), desires to construct certain public works of improvement that are to be owned, operated and maintained by the City (the "City Improvements"), by the Otay Water District (the "OWD Improvements" and "OWD" respectively) and by various public utilities (the "Utility Improvements" and "Utility Companies" respectively) and that are proposed to be included wi!h the works of improvement for the Assessment District, name]y, the improvements as set forth and described in the attached, referenced and incorporated Exhibit "A" (collectively, the "Improvements"); and, WHEREAS, the City and Developer are in a."oreement that the Improvements may be acquired by the City through the Assessment District financing at the times and at the prices deœrmined pursuant to the provisions of this Agreement; and, WHEREAS, the Developer inœnds to construct the Improvements in three (3) phases as shown on Exhibit "A" hereto and Developer, in the original Acquisition !Financing Agreement and the Amended Acquisition/Financing Agreement, had requested and such agreements had provided that the Improvements be acquired by the City in phases; and WHEREAS, in such prior agreements Developer had requested the oppornmity to subsequently negotiate an amendment to such agreements to provide for the acquisition by the City of Improvements in discreœ components to be defined by such amendment; and WHEREAS, in such prior agreements, the City expressed its willingness to provide for such future negotiations contingent upon the closing of escrow or escrows for the sale of the property within the Assessment DiStrict identified as R-I, R-2, R-3, R-4 and R-5 on Tentative Map No. ~ to one or more merchant builders and the closing of the restructuring of the Developer's debt on the property within the Assessment District and the remainder of the Otay Ranch; and 19ß ''< 5112/99 \\'HEREAS, such conditions precedent to such negotiations having been satisfied, the City and the Developer did negotiate a modification of the provisions of the prior agreements pertailÚng to the a~quisition of the Improvements; and WHEREAS, the City and the Developer desire 10 enter inlO this Second Amended Ac:quisitionlFinancing Agreement 10 incorporate herein such modifications 10 the terms and conåitions pertaining 10 the acquisition of the Improvements as well as certain other amendments; and WHEREAS, it is the intent of this Second Amended Agreement that Developer shall, upon the sale of bonds for the Assessment District and satisfaction of all other conditions precedent contained herein 10 payment for the Improvements, be entitled pursuant 10 the provisions of this Second Amended Agreement 10 be paid for the Improvements which are integral and a part of the Assessment District, at the prices a, detennined by the City pursuant 10 this Second Amended Agreement; and, WHEREAS, the City is willing 10 acquire the Improvements from said Developer subject 10 the requirements of the 1913 Act, Article XlIID and the applicable policies of the City incluàing Council Poky Number 505-02 and the Assessment Guidelines for the City of Chula Vista printed March::]. 1995 (the . Assessment Guid,,!ines"), except as otherwise provided for herein, and D"ve1oper is d"sirous that the City purchase said Improvem"nts, and at this time any of said Improvements curTently existing are o....'I1ed hy Developer; WHEREAS, the City and Developer intend that this S"cond Amended Acquisition/Financing Agreement shall supercede and replace any existing agreement between the parties or th"ir pœd"cessors pertaining 10 the matters included h"rein, NOW, THEREFORE, IT IS MUTUALLY AGREED between the respective parties as follows: SECTION L Recitals, The above recitals are all true and correct. . SECTION 2. P1ans and Specifications, All plans, specifications and bid documents for th" Improvem"nts shall be prepared by the Developer at the Developer's initial expense, subject 10 City, OWD and/or the Utility CompalÚes approval, as the case may be (the ·Plans and Specifications"), The costs of acquisition of such Improvements shall include costs for said plans, specifications, bid documents and all related documentation: provided, however, such costs shall, except as otherwise provided for herein, be subject 10 the limitations and requirements of the Assessment Guidelines, Developer shall rot award bids for construction, commence construction or cause commencement of construction of any Improvements until the Plans and Specifications for such improvements have been approved by the City, OWD and/or the Utility Companies, as the case may be, SECTION 3, OWD Agreement and Utility Agreements. Developer, OWD and the Utility Companies have entered, or intend 10 enter, into agreements pertailÚng 10 the design, bidding, bonding, construction, inspection and acceptance of the OWD Improvements (the ·OWD Agreement") and !he Utility Improvements (collectively, the ·Utility Agreements"), City and Developer agree that 10 !he extent that !he 0\\'0 Agreement and !he Utility Agreements do rot conflict wi!h the requirements of !he 1913 Act pertailÚng 10 the acquisition and financing of the OWD Improvements and Utility Improvements, the OWD Agreement and the Utility Agreements shall establish the terms and conditions governing the preparation of Plans and Specifications for and !he inspection and construction of the OWD Improvements and Utility improvements, but that !his Second 79ß---;J 5/U/99 A.Iruonded Agreement shall control the Purchase Price and any increment thereof to be paid for any such O\\'D Improvements and Utility Improvements. A condition subsequent to this Second Amended Agreement but precedent to the payment of the Purchase Price or any increment thereof for the applic.ab1e Improvements shall be the execution by OWD, the Utility Companies, Developer and City of agreements pursuant to Streets and Highways Code Section lOll 0 satisfactory to Ù1e parties thereto related to the OWD Improvements and Ù1e Utility Improvements, SECTION 4, Construction of Improvements, Developer represents, covenants and agrees that all Improvements have been or shaII be constructed by, or WIder the direction of, Developer and have b'-...en or shaIl be constructed (a) in substantial compliance with !be approved Plans and Specific.ations (as defined herein) for such Improvements (b) in a good and workmanlike manner by well-trained adequately supervised workers, (c) in strict compliance with all govenunenlaI aød quasi-governmenlal rules, regulations, laws, building codes and all requirements of Developer's insurers and lenders, (d) free of any design flaws and defects and (e) in compliance with the requirements of Section 10010 of !be California Streets and Highways Code, \\i1ich statute requires that any of the Improvements to be acquired by the City \\i1ich are completed after adoption of the resolution of intention for the acquisition of such Improvements must be constructed as if such Improvement had b'-...en constructed under the direction and supervision, or under the authority, of City as to those Improvements to be owned by the City and under the direction and supervision, or under the auÙ1ority, of OWD as to the OWD Improvements" After approval of the Plans and Specific.ations for the Improvements pursuant to Section 2, Developer shall solicit at least three (3) bids, or, as to Improvements subject to (e) in the preceding paragraph, shall publicly advertise for bids for such Improvements and shaIl provide City with a list of all bids received for the contract. Subject to City's prior written approval, \\i1ich approval shaII not to be unreasonably withheld or delayed, Developer shaII award the contracts for such Improvements to the lowest responsible bidder. City, in its sole but reasonable discretion stating the reasons therefore, may require Developer to reject all bids and require the work for such Improvements to be rebid, In order to include the cost of any change order as an eligible cost for purposes of determining the Purchase Price for an Improvement pursuant to Section 8 of this Agreement, Developer shall obtain the written approval of City prior to execution of the work, \\i1ich approval shall not be unreasonably withheld or delayed, SECTION 5. Inspection and Acceptance of the Improvements. The construction activities relating to the Improvements shall be subject at all reasonable times to inspection by authorized representatives of City, the Utility Companies or OWD, as appropriate, Once an entire Improvement to be acquired by City is completed in accordance with the approved Plans and Specific.ations for such Improvement (including any change orders reasonably approved by City, the Utility Companies or OWD, as appropriate), then such Improvement shall be eligible for acceptance by the City for purposes of paying the Purchase Price (as defined in Section 8 below) for such Improvement Prior to acceptance of any Improvement by City for purposes of paying the Base Increment (as defined in Section 8 below) of the Purchase Price, the Developer shall provide to City Engineer the documentation set forth in Section 8( c)( I) below, SECTION 6, Warranty of Improvements. The Developer shaII be obligated for a period of twelve (12) months after the date City accepts an Improvement to repair or replace any defects or failures resulting from the work of Developer, its contractors or agents, Upon the expiration of such twelve (12) month period, Developer shall assign to City, OWD or Utility Companies, as applic.able, its rights in and 10 any warranties, 7'18 ---( 5/U/99 guarantees or otrer evidence of contingent obligations of third persons with respect to such Improvement. At tre time City accepts an Improvement and as a condition precedent to the payment to the Developer by the City of the Retained Increment (as defined in Section 8 below) of the Purchase Price, Developer shall post a maintenance bond in a form reasonably approved by the City, cause a maintenance bond to be posted, or assign Developer's rights under such a bond naming City, OWD or Utility Companies, as applicable, as beneficiary in an amount equal to fifteen percent (15 %) of the construction costs of tre Improvement in order to secure Developer's obligations pursuant to this Section. SECTION 7, Notice of Completioo and Lien Releases. Developer shall notify tre City Engineer of the City (!he ~City Engineer") in writing upon completion of each of the Improvements to be acquired hereunder, Developer shall prepare and execute a Notice of Completion for such Improvement or portion thereof in the form prescribed by Section 3093 of the California Civil Code and shall record such notice in the official Records of the County. Developer shall cause its contractors to provide unconditional lien releases for sucb Improvements or portion thereof in accordance with Section 3262 of the Civil Code. Notwithstanding the foregoing, City may waive !he requirement for a Notice of Completion and lien releases if City determines that as of !he date of payment of !he Base Increment of the Purchase Price for an Improvement, title to such Improvement or portion !hereof satisfies the requirements for Acceptable Title (as hereinafter defined), SECTION 8. Payment of Purchase Price, (a) Amount of Purchase Price, The amount to be paid by City for the Improvements to be acquired from Developer (the "Purchase Price") as to.each such Improvement shall (i) be detennined by City in accordance wi!h the provisions of this Section 8, (Ii) equa1!he lesser of the cost or !he vaJue thereof, (ill) include the reasonable cost or value of eligible appurtenant public facilities, (iv) include !he costs of the title insurance policy described in Section 10 (a)"and (v) include all o!her costs of construction reasonably determined by City to be eligible under the 1913 Act as a part of the cost of !he Improvements, such as fees and costs incurred in obtaining pennits and licenses, !he costs of change orders, and engineering and inspection fees. and the costs of such other items as are specifically referred to on Exhibit B hereto; provided, however, in no event shall the cost or value of the Improvements be deemed to exceed the contract prices set forth in the contracts and change orders approved by City and; provided, further, that such Purchase Price is subject to adjustment pursuant to the following paragraph if necessary to ensure that the assessments levied within the Assessment District comply wi!b !be requirements of Article XIlID. Developer acknowledges that (i) !be provisions of Article XIlID provide that (A) no assessment shall be imposed on any parcel whicb exceeds !be reasonable cost of the proportional special benefit conferred on such parcel, (B) only special benefits are assessable and (C) publicly owned parcels which receive a special benefit are to be assessed and (Ii) as material consideration for the City to enter into this Agreement, the City has required that the Developer make a contribution towards !be Assessment District by agreeing to reduce the Purchase Price for any Improvement by such amount as !be Assessment Engineer to the City may apportion as general benefit derived from such Improvement or as special benefit received by any publicly owned parcels or parcels designated on Tentative Map No, 96-04 for public ownership or use from such Improvement. Consequently, notwithstanding any o!ber provision of this Agreement to !be contrary, the Purchase Price for any Improvement may not exceed !be aggregate amount of the assessments reflecting special benefit conferred by such Improvement upon privately owned parcels not designated on Tentative Map No, 96-04 for public ownership or use within !be Assessment District as detennined by !be Assessment Engineer to the City and as confirmed by !be City Council less any amount of such assessments j(" 1 ß'--S" 5/U!99 allocated to costs not included in the definition of Purchase Price in the preceding paragraph, e,g" costs of issuance, assessment engineering, etc, (b) Incremental Pavment of Purchase Price, The Purchase Price for an hnprovement shall be payable in not to exceed three increments: the ~Base Increment" which shall be an amount not to exceed the lesser of (i) 75 % of the Purchase Price for such hnprovement determined pursuant to the provisions of (a) above or rú) 75% of ~ budgeted cost of such hnprovement set forth in Exhibit B hereto (the ~Budgeted Purchase Price"); the ~Retained Increment" which shall be an amount not to exceed the lesser of (i) 25 % of the Purchase Price for such hnprovement or (ii) 25 % of the Budgeted Purchase Price of such hnprovement; and the ~Supp1ementa1 Increment" which shall be that portion of the Purchase Price for such hnprovement payable pursuant to (d) below. . (c) Reauisition for Incremental Payment of Purchase Price. (1) Base Increment, The Developer may submit a written request to the City Engineer for the payment of the Base Increment for an Improvement upon the completion of the construction of such hnprovement in accordance with the approved Plans aud Specifications. Such payment request must conform to the requirements of (d) below and must be accompanied by (i) a certificate of the Developer, supplemented by information reasonably satisfactory to City Engineer, that an hnprovement subject to the provisions of (e) of the first paragraph of Section 4 to be acquired has been constructed as if it had been constructed under the direction and supervision, or under the authority of City or OWD, as appropriate, rû) a certificate of Developer stating that no mechanics liens or other encumbrances have attached, or to the best knowledge of Developer, after due inquiry, will attach to the hnprovement to be acquired, (ill) unconditional lien releases in a form satisfactory to the City Attorney as to such hnprovement as required pursuant to Section 7 hereinabove (unless the requirement for such lien releases has been waived by the City pursuant to such Section 7,) and (iv) evidence of the satisfaction of the requirements of Section 10. hereinbelow directly related to such hnprovement, (2) Retained Increment The Developer may submit a written request to the City Engineer for the payment of the Retained Increment for an Improvement upon the completion of all of the hnprovements in accordance with the approved Plans and Specifications. Such payment request form must conform to the requirements of (d) below and, unless previously provided to the City, must be accompanied by (i) as-built drawings or other equivalent plans and specifications for such Improvement in a form reasonably acceptable to the City, OWD or the Utility Companies, as applicable and (ii) evidence that the Developer has posted a maintenance bond for such Improvement as required by Section 6 hereinabove, (3) SunDlemental Increment The Developer may submit a written request to the City Engineer for the payment of the Supplemental Increment, if any, to which the Developer may be entitled for an Improvement upon (i) the completion of all of the Improvements in accordance with the approved Plans and Specifications and (ii) the payment of the Base Increment and the Retained Increment for all hnprovements, Such payment request must conform to the requirements of (d) below, y ~ß/t 51U/99 (d) Documentation, AIiy paymern request submitted by Developer shall be properly executed and shall include or be accompanied by all supporting documents refelTed 10 in the paymern request or required by (c) above (e) Review of Payment Reauest The City Engineer shaD review eaeb writteD payment request received from 1he Developer. If the City Engineer finds that any sueb paymeDt request is incomplete, improper or otherwise not suitable for, approval, the City Engineer shaD inform Developer iD writing within twenty (20) working days after receipt thereof, the reasons for his finding. Developer shaD have the right to respond to this finding by submitting further documentation and/or to resubmit the payment request within thirty (30) days after receipt of 1he denial. A resubmissioD shaD be deemed a new payment request for purposes of this Section, The City Engineer shall review any resubmitted payment request and infonn Developer' of his approval or denial of it in accordance with this Section within teD (10) working days after receipt of the resubmission, Costs incurred under a construction contract entered pursuant to the requirements of this Agreement and pursuant to change orders approved by City shall be deemed to be reasonable, The City Engineer shaD, after the sale of Bonds (defined in Section 19 below) pursuarn to Section 19 and the receipt of the proceeds of sueb Bonds whieb are intended to be used to acquire the Improvements and after his or her approval of a payment request; immediately forward sueb payment request to the Finance Director of the City notifying the Finance Director of his or her approval of the payment request and requesting that such payment be made to the appropriate payee, The Finance Director shall process any sueb request of the City Engineer pursuant to the applicable procedures of the Fmance Department and shaD make or authorize such payment pursuant to such procedures, (f) Surn1us Proceeds. Upon completion of construction of all Improvements, the payment of the Purchase Price for all Improvements up to the amount budgeted for eaeb such Improvement in Exhibit B and the determination by the City that there are excess proceeds of the Bonds available for the payment of the Purchase Price for any Improvements ("Surplus Proceeds"), the City shaD pay to Developer that portion of the Surplus Proceeds equal to the amount, if any, of the positive difference between the amount budgeted for the Improvement as set forth in Exhibit B and the portion of the Purchase Price paid pursuant to Section 8(a); provided, however, that Developer has documented any applicable cost overruns related to the construction of the Improvements cOlTesponding to such amount to City's reasonable satisfaction, (g) Pavrnent, The increment of the Purchase Price for each Improvement shall be paid to Developer within thirty (30) days after the date of the City Engineer's approval of the payment request for any sueb increment; provided, however; no Base Increment may be paid earlier thaD thirty-five (35) days after the recording of a Notice of Completion for the Improvement. The Purchase Price shall be distributed pursuant to written instructions by all persons having an interest in the property as of the date of this Agreement. For purposes of this Section 8, "persons having an interest in the property" sha1l consist of the Developer and any mortgagee or beneficiary of any mortgage or deed of trust, as applicable, securing any loan the proceeds or any portion of whieb were used to finance the construction of the Improvements or any portiOD thereof. No cash distribution shall be made until all parties have executed the appropriate written instructions, Notwithstanding the foregoing, the Purchase Price or any increment thereof shaD be payable to the Developer solely from and to the extent of available funds derived from those proceeds of the /f'9ß..-? 5/U/99 sale of Bonds which are on deposit in the Project Account of the Improvement Fund estahlished pursuant to terms and provisions of the Bond Indenture by and between the City and !he fiscaJ agent therefor approved by the City Council on May 25, 1999 (the "Bond Indenture") and which are authorized pursuant to 1he terms of 1he Bond Indenture to be used to pay such Purchase Price or any increment thereof , after all costs of formation of the Assessment District and aU costs of issuance of such Bonds have been paid and deposits of accrued and capitalized interest to !he redemption fund and the initial deposit to the reserve fund have been made, Beyond the amount of such available proceeds, the City shall have no obligation to pay for 1he Improvements contemplated hereby, In addition to the foregoing, the City shall have !he right to withhold payment of !he Purchase Price or any increment thereof of any Improvement if (a) the Developer is delinquent in 1he payment of any assessment installments or speGial taxes levied by the City or a community facilities district established by the City on properties !hen owned by the Developer within the District or (b) the City Engineer reasonably determines that the Developer is not then in substantial compliance with all applicable conditions and obligations imposed upon !he Project pursuant to !he land use entitlements approved by !he City for the Project, including but not limited to, payment of aU applicable fees, dedication of all applicable rights-of-way or o!her property and construction of all applicable public improvements. The City Engineer shall provide written notice to the Developer of the decision to withhold any such payment and shall specify !he reason for such decision. If !he payment is witltheld as a result of the delinquency in !he payment of assessment installments or special taxes, the notice shall identify the delinquent parcels and the amount of such delinquency. If the payment is witltheld as a result of substantial nOD-compliance with a condition or obligation, the notice shall specify such condition or obligation and what action will be necessary by the Developer to substantially comply with such condition or obligation. Upon receipt by the City Engineer of evidence reasonably satisfactory to the City Engineer of the payment of the delinquent special taxes or assessments or upon the determination by the City Engineer that the Developer has substantially complied wi!h the subject condition or obligation, the City shall forthwith make any payment which has been withheld pursuant to the provisions of this paragraph. SECTION 9. Audit. The authorized representatives of City shall have the right, upon two (2) days prior written DOtice to Developer and during normal business hours, to review all books and records of Developer pertaining to costs and expenses incurred by Developer in construction of the Improvements, SECTION 10. Ownership and Transfer of Improvements, The conveyance of the Improvements by Developer to City shall be in accordance with the following procedures: (a) Imnrovements Constructed on Land not Owned bv City, OWD or Utility Comnanies, As a condition to the payment of any increment of the Purchase Price, Developer shall cause an irrevocable offer of dedication to be made to City, OWD or Utility Companies or an ounight grant of a fee interest or easement interest as appropriate, in the sole discretion of the City, OWD or the Utility Companies, as appropriate, of the appropriate right, title and interest in and to the portion of such property related to such Improvement, including any temporary construction or access easements, Dedication to !he City of street right-of-way complying with the provisions of this Section 100a) shall satisfy the foregoing condition as to any OWD Improvements or Utility Improvements to be located within such right-of-way dedication, Developer, whether or not it is the entity constructing the Improvements, agrees to execute and deliver to the appropriate entity the documents required to complete the transfer of Acceptable Title to such portion of the Property, For purposes of this Agreement, the term . Acceptable Title· shall mean title to the portion of the property to be conveyed free and clear of all ;Y ~ß~g/ 5/U/99 taxes, liens, encumbrances, assessments, easements, leases, whether any such item is recorded or unrecorded, except those IIOmnonetary encumbrances and easements whieb are reasonably determined by the appropriate entity not to interfere with the intended use of the portion of the property, As a further condition to the payment of any increment of the Purchase Price for any City Improvement, Developer at its sole cost and expense, subj~ to reimbursement pursuant to Section 8" shall cause to be issued a policy of title insurance for sueb portion of 1he property in an amount not to exceed the Purchase Price and in 1he form normally required by City in connection wi1h the dedication of land for subdivision improvements and containing sueb title endorsements as may be reasonably requested by City, City's final acceptance of1he portion of1he property and the City Improvements constructed 1hereon sha1I not be unreasonably withheld or delayed. (b) Imnrovements Constructed on Land Owned bv City, OWD or the Utility Comnanies, If Developer is authorized to construct an Improvement on land owned in fee by City, OWD or the Utility Companies, as appropriate, or on land over whieb sueb applicable entity owns an easement Developer shall obtain 1he necessary encroachment permits to enter sueb land for purposes of constructing such Improvement. City sha1I cooperate wi1h Developer in issuing such encroachment permits, Improvements sha1I be inspected by City on an ongoing basis, SECTION 11. Grading and Subdivision Improvement Bonds. Prior to the sale of the Bonds or any portion 1hereof, Developer sha1I be required to post bonds or other security acceptable to the City to guarantee completion of1he Improvements, The amount of1he security shall be 110% times a construction cost estimate approved by the City Engineer if improvement plans have been approved by the City; 150% times the approved cost estimate if improvement plans are being processed by the City or 200 % times the construction cost estimate approved by the City Engineer if improvement plans have not been submitted for City review, A lesser percentage may be required if it is demonstrated to the satisfaction of the City Engineer that sufficient data or other information is available to warrant sueb reduction. Bonds for specific Improvements shall not be required or may be released it (1) sueb Improvements constitute a portion of 1he required subdivision improvements, (2) Bond proceeds whieb are then authorized to be utilized to acquire sueb Improvements are on deposit in the Proj~ Account of the Improvement Fund prior to recordation of the final subdivision or parcel map, and (3) the Improvements are to be constructed entirely with the proceeds of the Bonds, In addition, any security to guaranty the construction of East Palomar Street submitted in compliance with and to satisfy condition ofapproval No, 109 of Tentative Map No, ~ sha1I be counted towards meeting the bonding requirements of this Section 11. Provided that conditions (1) and (2) are satisfied, if an Improvement is to be constructed or acquired only in part with the proceeds of the Bonds, subdivision improvement bonds or security bonds shall not be required for that portion of the Improvements to be so constructed or acquired except with respect to the portion that will not be acquired or constructed with Bond proceeds, City will cooperate with Developer in the termination or exoneration of any subdivision improvement bonds or security bonds assuring completion of Improvements for which bonds have been sold, SECTION 12, Indemnification by Developer, Developer shall defend, indemnify and hold harmless City, its officers, directors, employees and agents, from and against any and all claims, losses, liabilities, damages, including court costs and reasonable attorneys, fees by reason of, or resulting from, or arising out of the design, engineering and construction of the improvements; provided that any claims which relate to the Improvements shall be limited to those arising out of personal injury or property damage caused by actions or omissions by Developer or Developer's employees, agents, independent contractors or representatives which occurred during the period prior to Ú1e transfer of title to the Improvements by City, whether or not a ~9ß"1 5/U/99 claim is filed prior to !he date of acceptance of the Improvements, No1hing in this Section 12 shall limit in any manner City's rights against any of the architects, eIleoineers, contractors or o!her consultants employed by the Developer which has performed worl:: in connection with construction or financing of the Improvements, Except as set forth in this Section 12, no provision of this Agreement shall in any way limit the extent of the responsibility of Developer for payment of damages resulting from the operations of !he Developer, its agents, employees or contractors. SECTION 13. Obligation of aty. The ,City has 00 legal or financial obligation to construct or finance the actual construction of the Improvements. All costs incurred for acwal construction of !he Improvements, including all incidentals thereto, shall be borne by Developer, The City's obligations are limited to the acquisition of the Improvements pursuant to the-provisions of this Agreement. SECTION 14. Faùure by Deveioper to Construct Improvements. At any time that !he construction of the Improvements is oot progressing within a reasonable time or !he Developer fails to demonstrate a continuing ability to complete !he construction of the Improvements, the City may give written notice of such failure of performance to the Developer. Developer shall have sixty (60) days from the date of receipt of such notice to cure such failure of performance by demonstrating to the satisfaction of the City during such cure period reasonable progress in the construction of the Improvements and a continuing ability to complete the construction of the Improvements. Should Developer fail to satisfactorily demonstrate such reasonable progress or such continuing ability, this contract may be terminated by the City by providing ten (10) days written notice to the Developer. Upon termination, !he City may in its sole discretion !hen proceed to advertise and bid the balance of the Improvements, and there will be no further obligation for payment due pursuant to this Agreement, In the event that the City chooses not to advertise and bid the balance of !he Improvements following such a termination, any monies remaining in the improvement fund for the Assessment District and not appropriated or subject to appropriation for eligible expenses of the Assessment District previously incurred shall be transferred to the redemption fund for the Assessment District and used to call outstanding Bonds and/or to give a cash refund to property owners who have previously prepaid their assessment obligation, SECTION 15. Agreement Contingent. As a precondition to the obligations of the City hereunder and at the time the City Council shall, after public hearing and tabulation of the assessment ballots submitted pursuant to Article XIIID of the Constitution of the State of California, confirm the Engineer's Report on the cost of Improvements and proposed spread of assessments, Developer shall pay ("Origination Payment") in cash to City an origination charge of 1.0%, or such o!her percentage as may be established by !he City Council and be in effect at the time of such public hearing, of the Engineer's estimate of the total costs of !he acquisition of the Improvements, all incidental costs, costs of issuance of the Bonds and any other financing charges as estimated in the Engineer's Report confirmed by the City Council. Said Origination Payment shall be at Developer's own expense and not recoverable from the proceeds of the ~s.<'"s<:n'\ent or from the proceeds from the sale of the Bonds, In the event that the Bonds are, for any reason, not sold, the amount of the Origination Payment shall be rewrned to the Developer, less any costs to the City; provided, however, the amount of the origination Payment shall not otherwise be adjusted by differences between !he actual and estimated costs of the Improvements and financing charges. TIús Agreement is contingent upon the confirmation of assessments and successful sale of Bonds, and it shall be null and void if said Bonds are not sold within a three (3) year period following the date of this Agreement, or any mutually agreed extension; however, this time can be extended by request of the Developer and concurrence of the legislative body, .7 9ß.../tJ 5fUf99 The City may, at its option, suspend the performance of its obligations under this Agreement if, during the 30-day statute of limitations period following the formation of the Assessment District, any legal challenge is filed relating to the validity or enforceability of this Agreement, the Assessment District proceedings or the issuance of the Bonds. The obligations of the City bereunder shall be reiIlS1ated upon the entry of a final judgment in any such proceedings upholding the validity and enforceability of the Agreement, the Assessment District proc""'¡;,,1:" and the issuance of the Bonds, In the event that a final judgment is entered invalidating or declaring une\IÍorceable this Agreement, the Assessment District proceedings or the issuance of the Bonds, the City may, at its option, terminate this Agreement , SECTION 16, Notice of Assessment. Developer, or the successor or assigns of the Developer, shall provide wriuen notice to all potential purchasers of lots in a form satisfactory to City so advising the potential owner of the fact of the proposed or confirmed Assessment District, with said document being executed by the potential purchaser. Such notice shall be provided to the potential purchaser a reasonable time before the potential purchaser becomes conttaC1llally committed to purchase the lot so that the potential purchaser may knowingly consider the impact of the ~...."-="'nt in the decision to purchase the lot, A copy of all such notices executed by actual purchasers shall be sent to the City Engineer. SECTION 17. Limitation of Aggregate Taxes and Assessments. Developer, its successors or assigns (other than residential homeowners) shall include in any future agreement to sell all or any portion of the property to any person or entity (a "Builder") for the purpose of constructing and marketing owner-occupied residential dwelling units (a "Bui1derfDeveloper Agreement") provisions requiring the inclusion of the following "escrow instructions" in all sales by such Builder to residential home owners: (a) At or prior to the closes of each such escrow. the Escrow Company shall apply a "calculation formula" previously approved by the City Engineer of the City and deposited with the Escrow Company by the Builder to determine the aggregate of all annual ad valorem property taxes, all special taxes and all assessment installments (the "Total Annual Taxes and Assessments") applicable to the parcel subject to such escrow (the" Applicable Parcel"), (b) If the Total Annual Taxes and Assessments exceeds 2 % of the sales price of the Applicable Parcel, the Escrow Company will make immediate wriuen demand upon the Builder for deposit into the escrow of the funds necessary to prepay the assessment for the Assessment District SO that the Total Annual taxes and Assessments will thereafter be equal to or less than 2 % of the sales price of the Applicable Parcel. Any such prepayment shall conform to and be in the amount calculated pursuant to Streets and Highways Code Section 8766.5. Such funds must be received by the Escrow Company prior to the close of escrow of the sale of the Applicable Parcel. Upon closing of sucb escrow the amount so deposited by the Builder pursuant to this escrow instruction shall be sent by the Escrow Company to the Fmance Director of the City, together with wriuen instructions, that such amount is to be used to partially prepay the assessment of the Applicable Parcel for the Assessment District, The foregoing provisions applying to a Builder shall also apply to the Developer as to any residential dwelling unit or units which the Developer may construct and market to residential homeowners, In addition to any other remedy provided for by law or in equity, the City may enforce the provisions of this Section 17 by an action for specific performance or injunctive relief or both, SECTION 18, Relationship to Public Works, This Agreement is for the construction and acquisition of certain Improvements by City and the sale of the Bonds for the payment of construction and acquisition costs )JY9!l-// 5/12/99 for such Improvements and such other amounts as are herein provided, and is not intended to be a public works conttact. In performing its obligations under this Agreement, Developer is an independent contractor and not the agent of City, City shall have no responsibility for payment to any contractor or supplier of Developer. Notwithstanding the foregoing, Developer may be subject to cer1ain public conttact requirements as provided in Section 10010 of the California Streets and Highways Code and Section 4 of tlûs Agreement. SECTION 19. Sale of Bonds. If aI¥l when the .ASsP~.ment District is successfully formed, acquisition of the Improvements ordered aod ......<ments confirmed, the City shall proceed with the issuance and sale of improvement bonds to represetú unpaid ~ments within the A.....<metú District (the "Bonds") to be issued pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California. The proceeds of the Bonds shall be used in the following priority to (i) fund a reserve fund for the paymetú of principal aod interest with r~ct to the Bonds; (ii) fund capitalized interest on the Bonds in an amount DOt to exceed the amount provided for in the FInal Engiœer' s Report for the Assessment District; (ill) pay for costs of issuance of the Bonds including, without limitation, underwriter's discount, bond counsel fees, printing, and paying agent fees; (iv) pay for the costs of forming the Assessment District; and (v) the acquisition of the Improvements pursuant to the provisions of this Agreement. The timing of the issuance and sale of the Bonds, the tenDS and conditions upon which the Bonds shall be issued and sold, the method of sale of the Bonds and the pricing of the Bonds shall be determined solely by the City and shall conform to all applicable policies of the City. The sale of the Bonds shall be subject to receipt by the City of a public bid or bond purchase agreement which is acceptable to the City, Notwi1hstanding 1he foregoing, the aggregate principal amount of the Bonds shall not exceed one-third (113) of the value of the property within 1he Assessment District suhject to assessment as determined hy an independent appraisal undertaken for the City utilizing the appraisal assumptions approved by the City, Developer agrees to provide all information regarding the development of the property within the Assessment District, including the financing plan for such development, which the City and/or 1he initial purchaser of 1he Bonds or its counsel deems necessary to ensure that 1he official statement for such Bonds complies with the requirements of Rule 1502-12 of the Securities and Exchange Commission (the "Rule") and all o1her applicable federal and state securities laws, Additionally, Developer agrees to enter into a continuing disclosure agreement to provide such continuing disclosure pertaining to the Assessment District, the development thereof and 1he Developer as the initial purchaser of the Bonds or its counsel deems necessary to ensure ongoing compliance wi1h the continuing disclosure requirements of the Rule, SECTION 20. Conflict with Other Agreements. Nothing contaired herein shall be constructed as releasing Developer from any condition of development or requirement imposed hy any other agreement with City. In the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing hy City. SECTION 21. General Standard of Reasonableness, Any provision of 1his Agreement which requires the consent, approval, discretion or acceptance of any party hereto or any of their respective employees, officers or agents shall be deemed to require that such consent, approval or acceptance not be unreasonably witlùteld or delayed, unless such provision expressly incorporates a different standard, SECTION 22, Entire Agreement; Amendment. This Agreement and the agreements expressly referred to herein contains all of 1he agreements of the parties hereto with respect to the matters contained herein and no prior or contemporaneous agreement or understandings, oral or written, per1aining to any such matters shall )or" 9ß..-/:2. 51UI99 he effective for any purpose, No provision of this Agreement may he modified, waiver, amended or added 10 except by a writing signed by the party against which the enforcement of such modification, waiver, amendment or addition is or may be sought. SECTION 23, Notices, AJ1y notice, payment or instrument required or pennitted by this Agreement 10 he given or delivered 10 either party shall be deemed 10 have been received when personally delivered or seventy- two (72) hours following deposit of \he same in any United States Post Office in California, registered or certified, postage prepaid, addressed as follows: Developer: Otay Project, U.C 11975 El Camino Real, #104 San Diego, CA 92150 Attn: Kent Aden City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Manager Each party may change its address for delivery of notice by delivering wrinen notice of such change of address 10 the other party, SECTION 24. Severability. If any provision of this Agreement is held 10 be ilIegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect 10 the fullest extent reasonably possible, SECTION 25. Successors and Assigns, This Agreement shall be binding upon and inure 10 the benefit of the successors and assigns of the parties herelO, Developer may not assign its rights or obligations hereunder except upon written notice 10 City within ten (10) days of the date of such assignment indicating 1he name and address of the assignee, Upon such notice and the assumption by the assignee of the rights, duties and obligations of the Developer arising under or from this Agreement, Developer shall be released by City from all future duties or obligations rising under or from this Agreement. Notwithstanding the preceding sentence, Developer may assign its rights and obligations hereunder as security to lenders for the purpose of obtaining loans 10 finance development within the Assessment District, but no such assignment shall release Developer from its obligations hereunder 10 City, SECTION 26. Governing Law, This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California, Additionally, this Agreement and the construction of 1he Improvements shall be subject 10 all City ordinances and regulations relating 10 the requirement of improvement agreements, land division, improvement security or o1her applicable development requirements, SECTION 27, Waiver. Failure by a party 10 insist upon the strict performance of any of the provisions of this Agreement by any o1her party, or the failure by a party 10 exercise its rights under the default of any other party, shall not constitute a waiver of such party's right 10 insist and demand strict compliance by any other party with the terms of this Agreement thereafter. ?" 9ß//J 51UI99 SECTION 28, Singular and Plural; Gender, N; used herein, the singular of any work includes the plural, and terms in the masculine gender shall include the feminine, SECTION 29. Counterparts, This Agreement may be executed in counterparts, each of which shall be deemed an original. SECTION 30. Coostrudion or ~greement. This Agreement has been reviewed by legal counsel for both the City and the Developer and shal1 be deemed for all purposes to have been jointly drafted by the City and the Developer. No presumption or rule ~t ambiguities shall be construed against the drafting party shall apply to the interpretation or enforcement of this Agreement. The language in all parts of this Agreement, in all cases, shal1 be construed as a whole and in accordance with its fair meaning and not strictly for or against any party and consistent with the provisions hereof, jn order to achieve the objectives of the parties hereunder, The captions of the sections and subsections of this Agreement are for convenience only and shall not be considered or referred to in resolving questions of construction, SECTION 31. No Obligation to Form Assessment District. Developer acknowledges that the decision of the City Council of the City to form the Assessment District is a legislative action and the City may not enter into an agreement to obligate the City Council to exercise its legislative discretion in a particular manner or for a particular result. This Agreement does not, therefore, in any ",-ay create a contractual, legal or equitable obligation of or committnent by the City to approve the formation of the Assessment District, [End of page, Next page is signature page,] ß'" 9ß..-)tj 5/U/99 Signature Page to Second Amended AcquisitionlFinancing Agreement by and between the City of Chula Vista and Village Development LLC EXECUTED by and between the parties hereto on the day and year first hereinabove written, "CITY" OTY OF CHULA VISTA . MAYOR CITY OF CHULA VISTA STATE OF CALIFORNIA ATTEST: APPROVED AS TO FORM: CITY CLERK JOHN KAHENY, CITY AITORNEY CITY OF CHULA VISTA CITY OF CHULA VISTA STATE OF CALIFORNIA STATE OF CALIFORNIA "DEVELOPER" OTAY PROJECT, LLC, a CaliforIÚa limited liability company, By: OTAY RANCH DEVELOPMENT, LLC, a Delaware limited liability company, managing member By: Title: Executive Vice President )<' 9!J ;J~ 1lI24/98 EXHIBIT "A" DESCRIPTION OF IMPROVEMEJI.'TS ~ 9ß-/¡/ 11124/98 EXHIBIT "B" BUDGETED COST OF IMPROVEMENTS . Y 90--/7 EXHlBIT A \ Description of Work , Assessment District 97-2 Tn: gem:ral description of work to be funded by ."'-ssessment District 97-2 consists of the . follov.i.ng: . L S1reet improvements consisting of grading, base, paving, curb, gutter, sidewalk, street lightning, landscaping, potable 'Water facilities, storm drain facilities, sewer iacilities, reclaimed water facilities, electric facilities, telephone facilities, and gas facilities as appropriate by applicable state and federal statutes 'Within the following rights-of-way: PHASE 1 A) Paseo Ram:hero Segment "A~ - :from Telegraph Canyon Road to Ezst Palomar. B) East Palomar S1reet Segment "A ~ - north halffTom Paseo Ranchero to P-ll R-2L C) Monarche Drive Segment."A~ - :from west terminus to Santa Ynez (some utilities to West Paseo. PHASE 2 D) East Palomar Segment "Bn - south half from Paseo Ranchero to P-l I R-2L E) Monarch: Dñve Segment uB~ - from Santa Ynez to east terminus. PR~SE 3 . F) East Palomar S1reet Segment "C" - north half 'Width improvements from P-ll R-21 to east boundary. G) East Palomar Street Segment "D" - south halffTom P-ll R-21 to east property line, 2. DIF funded street improvements consisting of grading, storm drain, base, paving, curb, gutter, sidewalk, medians, sre:tlighting, landscaping, and street monumentation within the following rights-of-way: A) Pas eo Ranchero Segment "A ~ - from Telegraph Canyon Road to Ezst Palomar. 'fß/Iff' c~......Mt I ( , -- --- , ~ , i ;'; . \ - " ~f: \ =='§ c:.§: E_:¡ ~ E-:.. E ~ .. '- E 0_ ~ 0 0 , ':: æë-: 5S . " ~;::; = -= = -">- ~'" 1~; - 0 '" 0 . ~É . . "'¡¡c: -~ ~ . g,¡::.., : j~ ~ ª ¡¡ I: = uõ.= -" '=':;;E ª~ - ~:; i: ~~ 1 -..= '; ..= ¡¡ s ¡:: . z ~~~ =;-;; . - :;;;;; ~þ §.7,g 0;,: '-' -=<. :ë - " , [~ ~;~ =~ ! ; ~ . ~ " " ~~ f.~ :0 i.r 'EE . . ~ " . ~.;; \ ~ ~ .. 01:.:- ~ ~ :: ¿;:;.::. 0- .....;:: Õ Õ -=c_ ~~ ~~~ :;:~ =..~ ~ ~ ;; o ~ ~ ... ': 0 "..,£ ;.:.;¡.:.¡ E~:¿ ~, :1:-:-5 -\--=S- ~\E'Z <1:1- ~¡<- E! ~! I \ ~. , / ¡:; ¡.: '" , ¡;: \ ::>~-Þ-: ) ~ 0 -J íl \ , 4Í ~J\ i :: ~\ , ~ ~ I ~ WI \ \ , -$3 / e I ! ) ) '¡ J , I ) NC\-\ERO I -. - I ,/ ?A I , , ,~- /------ - 1 / - \. - - - . -- - :;: /'1 i I - , .~ '''/..,.' ^^ " --;-¡ ..--'" EXHIBIT "B" 11/5/98 BVDGETED COST OF IMPROYEME\ì'S CONSïRUCTON COSTS R:a:iway 5,490,040 SewerlWaterlRe--..iaimed Water 1,591,025 Dry Utilities 1,012,644 T;øffi: Signal 147,672 Sub ï otaf Construction Costs 9,241,581 . CONSULTANT & SOFT COST Design Enginæring 2,5% 231,040 Soils ::nginæring 12,0% of grading cost 151,980 Lan::s::ape Ar::hiie=tuT9 5,0% of lands::a¡>e & irrigati:m ::::1st í 34,535 Surveying & Staking 1,5% 138,524 Utiiiiy ::ngineering 3,0% of dry utiliiy cost 30,379 PerrnitslFeeslBonds 5,0% 452,079 Construction Administration 1,0% 92,415 ConSülJ::t:ion Su¡>ervision 0,75% 59,312 Construction Contingencies 10,0% 924,158 Sub ïotal Consultant & Soft Cost 2,234,522 ï otal Construction Costs 11,476,103 Cost Summary S~~ Exhibit "C" aTIached heref ([ ;~~akdOWD of the major items of work. Cost Estimate EXHIBIT C 11/6/98 Paseo Ranchero Segment "A" GRADING AND SITE PREPARATION Site PreDaration Clear And Grub 14,8 AC 300 4,425 Mobilization (% of Mass Ex,) 34% LS 130,000 44,577 Unclassified Excavation /27 Mass Excavation 796,706 CY 0,91 725,002 Deduct for Compaction 790,6~1 CY (025) (197,656) OVer Ex. P, Ranchero & E Palomar 39,705 CY 0,91 36,132 Import Sand Base 29,295 CY 1,19 34,861 AlluviumfTop Soil R&R 30,965 CY 0,77 23,643 BlIttrP.s.~ & Slooe ~bili7ation [1J Stabilization Fill 113,743 CY 1,05 119,430 Back Drain Panels 8,500 SF 0,70 5,950 Back Drain Pipe 4" 930 LF 10,00 9,300 Outlet Pipe 6" 1,500 LF 6,00 9,000 Finish 642,510 SF 0,070 44,976 Canyon Subdrain 8" 600 LF 16,00 12,600 Construction Water 102,550 CY 0,060 6,153 Water Meter (% of Mass Ex,) 34% LS 15,000 5,144 Brow Ditch 1,850 LF 9,00 16,650 TOTAL GRADING AND SITE PREPARATION.................................................... 900,585 [1] Buttress & Slope Stabilization quantities are for wester1y slope only [2] Unclassified Excavation quantities are from easter1y ROW to wester1y slope along Paseo Ranchero The total grading quantity from slope to slope is 1,101,050 CY The total grading quantity from ROW to ROW is 469,079 CY SANITARY SEWERS MAIN LlN~S 10" PVC 2,037 LF 25.30 51,536 APPlJRTENANCFS Manholes (4' x 3') 5 EA 2,160 10,900 Remove And Replace Pavement 1 SF 1,760 1,760 Traffic Control 1 LS 1,000 1,000 5-9 Concrete Cadies 2 EA 250 500 TOTAL SANITARY SEWERS........m.....m.......................m..........m...........m.. 65,696 Paseo Ranchero-New ZfÆ/:< / Cost Estimate EXHIBIT C 11/6/98 Paseo Ranchero Segment "A" STORM DRAINAGE [1] ElEE 18" RCP T&G Joints 199 LF 38 7,660 18" RCP W,T, Joints 24 LF 48 1,154 24" RCP T&G Joints 151 LF 47 7,052 42" RCP T&G Joints 1,157 LF 97 112,403 42" RCP WT Joints . 84 LF 127 10,694 54" RCP T&G Joints 524 LF 133 69,849 IN! 8'S DIm FTS Clean Out (Type A-5) 3 EA 3,100 9,300 Clean Out (Type A-6) 1 EA 3,250 3,250 Clean Out (Type A-7) 1 EA 3,500 3,500 Curb Inlet (Type B-1) 2 EA 3,950 7,900 Curb Inlet (Type B-2) 2 EA 2,750 5,500 Excavate & Install 8" Drains (Median) 1 LS 1,447 1,447 Type "F" Catch Basin 1 EA 1,800 1,800 TOTAL STORM DRAINAGE..._........._................_._............._·····................ 241 ,508 [1] Storm Drain required if AD Roads were constructed and no other development was planned, Paseo Ranchero-New Page 4 9!J---,.2,2 Cost Estimate EXHIBIT C 11/6/98 Paseo Ranchero Segment "A" ROADWAY IMPROVEMENTS CURB AND GUTTER 6" Type "H" Curt And Gutter 3,842 LF 7.40 28,431 6" Type B-1 Curt 3,561 LF 4.87 17,342 AC Curt 152 SF 10,00 1,520 SUB TOTAL CURB & GUTTER 47,293 . FL A TWORK Sidewalk 30,122 SF 1,78 53,617 AC Sidewalk 1,300 SF 120 1,560 Pedestrian Ramp 4 EA 83 332 SUB TOTAL SIDEWALK 55,509 PAVEMENT AND PARKWAYS 5" AC on 11" AS 178,281 SF 1,86 331,603 Median Paving 3,000 SF 3,52 10,560 Export Excess Street Subbase 7,620 CY 3.00 22,860 OTHFR STRFFT IMPROVFMFNTS Street Name Sign Post 1 LS 1,600 1,600 Other Sign Post 1 LS 5,104 5,104 Traffic Signal 1 LS 47,122 47,122 Traffic Signal Modification (TC Road) 1 LS 57,910 57,910 Removal of Existing Improvements (IC) 1 LS 19,000 19,000 Survey Monuments 4 EA 275 1,100 Barricade 310 LF 20 6,200 striping 1 LS 9,308 9,308 SUB TOTAL PAVEMENT AND PARKWAYS 512,366 TOTAL ROADWA Y IMPROVEMENTS................................................................ 615,168 Paseo Ranchero-New Page 5 98"'.2';3 ~._-- Cost Estimate EXHIBIT C 11t6/98 Paseo Ranchero Segment "A" UNDERGROUND UTILITIES TRENCHING Regrade Parkway & Haul Dry Utility 6D HRS 223,15 13,389 Trench Spoil SUB TOTAL TRENCHING 13,389 STRFFT LIGHTS . Street Lights 44 EA 2,710 119,240 Pedestrian Lights 31 EA 2,950 91,450 SUB TOTAL STREET LIGHT 210,690 UT/LITYFEES Electric Service 1 lS 175,000 175,000 Electric Stub Conduit to Pump Station 1 lS 9,633,90 9,634 Retaining Walls for SDGE Transformers 1 LS 15,308 15,308 Irrigation Electric Meters 1 LS 21,060 21,060 Irrigation Electric Meters 3 EA 1,700 5,100 Gas Service 1 LS 7,500 7,500 Telephone Service 1 LS 86,000 86,000 SUB TOTAL UTILITY FEES 319,602 TOTAl UNDERGROUND .UTILITY.............._............_.__.mm......._..._.._.. 543,681 LANDSCAPE AND SPECIAL CONSTRUCTION LANDSCAPE (All romDlete & in Dlace) Supply & Install Planting 1 LS 933,823 933,823 Supply & Install Irrigation 1 LS 382,434 382,434 Supply & Install Decomposed Granite Trail 18,000 SF 1.45 26,100 Supply & Install Median Drains 1 LS 78,475 78,475 Payment & Performance Bond 1 LS 42,625 42,625 Worker's Comp Waiver of Subrogation 1 LS 7,105 7,105 Slope Landscape West Side Paseo Ranchero 514,676 SUB TOTAL LANDSCAPE 1,985,238 TOTAL LANDSCAPE AND SPECIAL CONSTRUCTION.............................................. 1,985,238 Paseo Ranchero-New Page 6 9ß /.,2 { Cost Estimate EXHIBIT C 11/5/98 East Palomar Street Segment "A and B" PROJECT East Palomar AREA: Village 1 PHASE: S~pment" A & B" . TOTAL IMPROVEMENTS ,,,,uu,,,. u,,,, ___ u"u n, n, ___ n' n, n, n, n, n, n'''' n, n.,n n'"'''' ___"", 1,336,319 NOTE: East Palomar Street From Pa5~o Ranch~ro To P-1/ R-21 Palomar Segment A and B-New Page 1 1[]'-- -2Š Cost Estimate EXHIBIT C 11/5/98 East Palomar Street Segment "A and B" GRADING & SITE PREPARATIONnm,,,,nnn,,nn,u,,.uun,,n 166,967 STORM DRAINAGEunmnnmuuuuuu:u"u u,'u'u u, u' u, u, ,uun 197,144 WATER DISTRIBUTlONm,n n, ,nn,U' n, n' n, n, n,n, n"nmnmU 176,194 RECLAIMED WATER DISTRIBUTIONunnm"u_nmmu"'" n, n, 130,986 ROADWAY IMPROVEMENTSmnu'unumnm"'u'''' m m,nn. 665,028 UTlLmESnn.mnn'nnuhhuu"'muumunu"".'n'" ", u, ". m ",hU. - LANDSCAPE & SPECIAL CONSTRUCTIONun___"huu"" n'''' - TOTAL: 1 ,336,319 Palomar Segment A and B-New Page 2 9(J/02.? Cost Estimate EXHIBIT C 11/5/98 East Palomar Street Segment "A and B" GRADING AND SITE PREPARATION Site Preoarafion Clear And Grub 11,1 AC 300 3,327 Mobif¡zation (% of Mass Ex) 5,81 % LS 130,000 7,553 Unclassified Exc:avation Mass Exc:avation 135,017 CY 0,91 122,865 AlluviumlTop Soil R&R . 21,582 CY 0,77 16,618 Finish 483,080 SF 0,070 33,816 Compaction Deduct (export) 72,335 CY (0250) (18,084) Over Ex. P. Ranchero & E. Palomar' 39,705 CY - - Import Sand Base' 29,295 CY - - Construction Water - CY 0,060 - Water Meter (% of Mass Ex,) 5,81 % LS 15,000 872 TOTAL GRADING AND SITE PREPARATION.................................................... 166,967 [1] See Paseo Ranc:hero budget for over exc:avation and import sand base, STORM DRAINAGE [2] E1EE 18" RCP T & G Joints 226 LF 38 8,699 1 B" RCP W,T, Joints 117 LF 4B 5,627 24" RCP T & G Joints 1,978 LF 47 92,373 24" RCP W,T, Joints 4B LF 53 2,558 24" CMP Riser 1 EA 1,750 1,750 42" RCP T & G Joints 256 LF 97 24,870 42" RCP WT Joints 36 LF 155 5,597 INt FTS OUTLFTS Clean Out (Type A-4) B EA 2,850 22,800 Clean Out (Type A-5) 2 EA 3,100 6,200 Connect to Existing A-4 1 EA 750 750 Upgrade Subdrain Sta, 38+00 1 LS 3,025 3,025 Subdrain Trenc:h Sta, 38+00 1 LS 3,995 3,995 Exc:avate & Install 8" Drains (Median)3 1 LS - - Curb Inlet (Type B-1) 4 EA 3,350 13,400 Curb Inlet (Type B-2) 2 EA 2,750 5,500 TOTAL STORM DRAINAGE............................................................................ 197,144 [2] Storm Drøin required if AD Roads were c:onstructed and no other development was planned [3] Costs inc:luded in Paseo Ranc:hero Storm Drain Cost Estimate, If g ... ..2 ? Palomar Segment A and B-New Page 3 Cost Estimate EXHIBIT C 11/5/98 East Palomar Street Segment "A and B" WATER DISTRIBUTION ElEE. S" Class 150 472 LF 27,85 13,145.20 10" Class 150 102 LF . 32.50 3,315 12" Class 150 1,748 LF 36,30 63,452 12" Class 200 1,401 LF 41,05 57,511 . VALV¡:-S 8" 2 EA 860 1,720 10" 3 EA 1,150 3,450 12" 8 EA 1,350 10,800 A PPURTFNANCES Fire Hydrant 3 EA 2,500 7,500 2" Blowoff 5 EA 1,230 6,150 Air And Vacuum Release Valve 2" 5 EA 1,830 9,150 TOTAL WA TER DISTRIBUTlON..........._...................._...................-............. 176,194 RECLAIMED WATER DISTRIBUTION ElEE. 6" Class 150 25,67 LF 37 950 8" Class 150 33 LF 3,130 101,755 VALVES 6" 690 EA 5 3,450 8" 850 EA 8 6,880 APPURTENANCES Air And Vacuum Release Valve 1" 1,250 EA 5 5,250 2" Blowoff 1,150 EA 5 5,750 2" Irrigation Service 850 EA 7 5,950 TOTAL RECLAIMED WATER DiSTRIBUTION................................................ 130,986 Palomar Segment A and B-New Page 4 98---,2.3" Cost Estimate EXHIBIT C 11/5/98 East Palomar Street Segment "A and B" ROADWAY IMPROVEMENTS CURB AND GUTTER 6" Curb Type "H" Curb and Gutter 5,863 LF 7,40 43,386 6" Type B-1 Curb 5,675 LF 4,87 27,637 AC Curb 410 SF 6.00 2,460 SUB TOTAL CURB & GU1TER 73,483 . Fl ATWORK Sidewalk/Cart Path 57,781 SF 2,Qô 119,029 AC Sidewalk 3,684 SF 1,20 4,421 Pedestrian Ramp 28 EA 83 2,324 Concrete Apron at Bus Tum Out 3,780 LF 4,82 18,220 SUB TOTAL SIDEWALK 143,993 PAVEMEMT AND PARKWAYS 4" AC on 11" AB 183,836 SF 1.69 310,683 Median Paving 5,250 SF 3,52 18,480 Enhanced Pavement at Pedestrian Light 760 SF 4,80 3,648 Export Excess Street Subbase 3,588 CY 3,00 10,764 Enhanced Paving with Concrete Band 2,400 SF 4,78 11,472 OTHER STRFFT IMPROVEMEMTS street Name Sign Post 1 LS 1,600 1,600 Other Sign Posts 1 LS 3,349 3,349 Traffic Signal Interconnect 1 LS 20,3Qô 20,306 Traffic Signal Conduit . 1 LS 15,708 15,708 Traffic Signal - Pedestrian 1 LS 42,839,50 42,840 Survey Monuments 4 EA 275 1,100 Barricade 110 LF 20 2,200 Striping 1 LS 5,402 5,402 SUBTOTAL PAVEMENT AND PARKWAYS 447,551 TOTAL ROADWA Y IMPROVEMENTS................................................................ 665,028 Palomar Segment A and B-New Page 5 9ß -;¿ C; Cost Estimate EXHIBIT C 11/5/98 East Palomar Street Segment "A and Bn UNDERGROUND U11LmES TRENCHING Regrade Parkway & Haul Dry Utility 60 HRS - - Trench Spoil SUB TOTAL TRENCHING - STR:=~ LIGHTS . Street Lights 44 EA - - Pedestrian Lights 31 EA - - SUB TOTAL STREET LIGHT - UTILiTY FEES Electric Service 1 LS - - Electric Stub Conduit to Pump Station 1 LS - - Retaining Walls for SDGE Transformers 1 LS - - Irrigation Electric Meters 1 LS - - Irrigation Electric Meters 3 EA - - Gas Service 1 LS - - Telephone Service 1 LS - - SUB TOTAL UTILITY FEES - - TOTAL UNDERGROUND .UTlLITY..........._..........._._....___........._....._.·..··· - (Note - Budget reflects Schilling Corporation contract for Paseo Ranchero, East Palomar & Monarche Drive, Contract detail is shown on Paseo Ranchero cost estimate,) LANDSCAPE AND SPECIAL CONSTRUCTION lANDSCAPE fAIl comnlete & in nIece) Supply & Install Planting 1 LS - - Supply & Install Irrigation 1 LS - - Supply & Install Decomposed Granite Trail 18,000 SF - - Supply & Install Median Drains 1 LS - - Payment & Performance Bond 1 LS - - Worker's Comp Waiver of Subrogation 1 LS - - SUB TOTAL LANDSCAPE - TOTAL LANDSCAPE AND SPECIAL CONSTRUCTION..................................................... - (Note - Budget reflects Arid West Landscape contract for Paseo Ranchero, E Palomar & Monarche Drive. Contract detail shown on Paseo Ranchero cost estimate,) Palomar Segment A and B-New Page 6 9/]--30 ----.-" Cost Estimate EXHIBIT C 11/219B East Palomar Street Segment "C D" PROJECT East Palomar AREA: Villaç¡e 1 PHASE: Segment nc & en . , TOTAL IMPROVEMENTS uumuu' u, u, u' u,u,u"um u,,,,mu, ."u,,,,'u m m m u,,,, ".uuum 3,103,572 NOTE: East Palomar Street from P-11 R-21 to East Boundry , . New Palomar Segment C & D,xls Page 1 9ß-3 f Cost Estimate EXHIBIT C 11/2198 East Palomar Street Segment "C D" GRADING & SITE PREPARATIONuu,uuuu,uu,u.u,u"uu,u. 174,618 STORM DRAINAGE..u,,,,,,,uu:uu,,,,huu,u h' u, u, m u, U' u, uu'u 158,219 SEWERu u,'u u, u, u, u' u, u. U' m ,:, u, u, u' ,uuuu m u,,,, u' u, u. 21,800 WATER DlSTRIBUTIONum,u, u,'uu. u.u, ,uu,u. u, u, u, "'uu,,, 1 83,750 RECLAIMED WATER DlSTRIBUTION",huuu,,,,uuu'm u u' u, m 130,040 ROPúJWAY IMPROVEMENTS,hu",u",u,,,,'u u,'u u, u' u, u. u' 746,042 UTlLmESuuuu,uu,u,u",uu,u",u",uu,__, u u' u, u' u'"., u ", , U u", 468,963 LANDSCAPE & SPECIAL CONSTRUCTlONu'u",___u U, u" u m 1.220,140 TOTAL: 3,103,572 New Palomar Segment C & D,xls Page 2 98/3:2. Cost Estimate EXHIBIT C 11/2198 East Palomar Street Segment "C D" GRADING AND SITE PREPARATION Site PreDaration Clear And Grub 13.0 AC 300 3,900 Mobilization 0,03 CY 138,000 4,140 Unclassified ~xcavation Mass Excavation 138,000 CY 0,85 117,300 . Finish 443,480 SF 0,08 35,478 Construction Water 138,000 CY 0,100 13,800 , TOTAL GRADING AND SITE PREPARATION........................................... 174,618 STORM DRAINAGE E1EE 18" RCP 1,192 LF 38 45,393 24" RCP 508 LF 44 22,301 36" RCP 363 LF 96 34,725 INt ETS OUTLETS Clean Out (Type A-4) 8 EA 2,600 20,800 Curb Iniet (Type B-2) 1 EA 2,750 2,750 Curb Inlet (Type B-1) 7EA 3,057 21,400 Curb Inlet (Type B) 2 EA 2,300 4,600 Raise Clean Outs To Grade 8 EA 250 2,000 24" CMP Riser 1 EA 1,750 1,750 Headwall 1 EA 2,500 2,500 TOTAL STORM DRAINAGE......................................................·................. 158,219 SANITARY SEWERS MAIN LIN~S 8"PVC 800 LF 21 16,800 APPURTENANCES Manholes 2 EA 2,500 5,000 TOTAL SANITARY SEWERS....................................................................... 21,800 New Palomar Segment C & D,xls Page 3 9/J-'J;J Cost Estimate EXHIBIT C 11/2198 East Palomar Street Segment "C D" WATER DISTRIBUTION eœE. 1 0" Class 150 700 LF 33 23,100 12" Class 150 3,650 LF 36 131,400 VALVES 10" 2 EA 1,150 2,300 12" . 5 EA 1,350 6,750 APPURTENANCES Fire Hydrant 5 EA 2,400 12,000 Air And Vacuum Release Valve 1" 2 EA 1,750 3,500 Air And Vacuum Release Valve 2" 2 EA 2,350 4,700 TOTAL WATER DISTRIBUTION..................................................................... 183,750 RECLAIMED WATER DISTRIBUTION eœE. 6" Class 150 200 LF 27 5,400 8" Class 150 3,650 LF 32 116,800 VALVES 6" 3 EA 690 2,070 8" 2 EA 860 1,720 APPURTENANCES 2" Irrigation Service 2 EA 850 1,700 Air And Vacuum Release Valve 2" 1 EA 2,350 2,350 TOTAL RECLAIMED WATER DISTRIBUTION.............................................. 130,040 New Palomar Segment C & D,xls Page 4 IJß---:J,/ Cost Estimate EXHIBIT C 11/2198 East Palomar Street Segment "C D" ROADWAY IMPROVEMENTS CURB AND GUITER 6" Curb And Gutter 7,000 LF 6.19 43,330 6" Curb Only 7,000 LF 4,67 34,090 Sub Grade Prep 14,000 SF 0.10 1,400 SUB TOTAL CURB & GUTTER 78,820 . FLA 7WORK Sidewalk 70,000 SF 1.76 124,600 Pedestrian Ramp 18 EA 75 1,350 Sub Grade Prep 70,000 SF 0,10 7,000 SUB TOTAL SIDEWALK 132,950 PA VFMENT AND PARKWA YS 5" AC/11" AS 250,000 SF 1,86 465,000 Sub Grade Prep, +/- ,5 250,000 SF 0,06 20,000 OTHER STREET IMPROVEMENTS Street Name Signs 4 EA 220 860 Other Signs 10 EA 220 2,200 Traffic Signal Interconnect 3,500 LF 10,50 36,750 Survey Monuments 14 EA 315 4,410 Barricade 146 LF 20 2,920 Striping 7,040 LF 0,30 2,112 SUB TOTAL PAVEMENT AND PARKWAYS 534,272 TOTAL ROADWA Y IMPROVEMENTS............................................................... 746,042 New Palomar Segment C & D,xls Page 5 9ßr3.5' Cost Estimate EXHIBIT C 11/2198 East Palomar Street Segment "C D" UNDERGROUND UTILmES TRENCHING Joint Trench 3,500 LF 60 210,000 Trench Only 800 LF 5.00 4,000 SUB TOTAL TRENCHING 214,000 STR;=ET LIGHTS . Pole And Double Luminaria 16 EA 2,278 36,448 SUB TOTAL STREET LIGHT 36,448 UTILITY FFFS SDG&E Line extention fee 1 LS 218,515 218,515 SUB TOTAL UTILITY FEES 218,515 TOTAL UNDERGROUND UTlLITY.....-.......................................................... 468,963 LANDSCAPE AND SPECIAL CONSTRUCTION LANDSCAPE Slope Landscape 40,000 SF 1.50 60,000 Parkway Landscape ( within ROW) 78,000 SF 3.50 273,000 Parkway Landscape (in public open space lot) 26,000 SF 1,14 29,640 Median Landscape 145,000 SF 2,50 362,500 Palm Trees (5 every 40LF) 440 EA 525 231,000 Parkway Trees (5 every 40 LF) 440 EA 600 264,000 SUBTOTAL LANDSCAPE 1,220,140 TOTAL LANDSCAPE AND SPECIAL CONSTRUCTlON................-.................. 1,220,140 New Palomar Segment C & D,xls ~ 1ß;,.J~ Cost Estimate EXHIBIT C 11/5/98 Monarche Drive Segment "A and B" PROJECT Monarche Drive AREA: Villalj/e 1 PHASE: Sepment "A and B" . TOTAL IMPROVEMENTS __,____ m"''''''''n n' n'___ n' U, n, n' n' n, n' U, n, n, ___ u' n' m m "uun__ 449,814 NOTE: Monarche Drive From East Terminus to West Terminus, Monarche A and B-New ~ 93-- J? Cost Estimate EXHIBIT C 11t5/98 Monarche Drive Segment "A and B" GRADING & SITE PREPARATION________,,,,_____.,.,____.,__.,,,__,, 24,327 STORM DRAINAGE"______,hhh:,.___",,___,, m'h h' h' __"",__ __. ,,_____ 101,080 RECLAIMED WATER DISTRIBUTION"___"___,,,,,,,,__,,,,,,,,,,,,,___ 73,992 WATER DiSTRIBUTION",,,, ___ ""h h'h'.,'''''''___h' ''''''m .". 110,616 ROPJ:JWA Y IMPROVEMENTS______",,,,,,,,,,, h'.,'''''', ___ ". h'''' 139,799 UTILlTIES___""___""___,_________",,,,,,________.,,,,,,,'u'u,,,,,,,,,,,, "__",, - LANDSCAPE & SPECIAL CONSTRUCTION"___",,___..,,__,____,, - TOTAL: 449,814 MDnarche A and B-New Page 2 1{!~J~ Cost Estimate EXHIBIT C 11/5/98 Monarche Drive Segment "A and B" GRADING AND SITE PREPARATION Site PreDaration Clear And Grub 2.4 AC 300 720 Mobilization (% of Mass Ex) 0,97% LS 130,000 1,261 Unclassified Excavation Mass Excavation 22,496 CY 0.83 18,672 AlluviumfTop Soil R&R 923 CY 0,77 711 Finish .104,544 SF 0.070 7,318 Compaction Deduct (export) 17,998 CY (0250) (4,500) Water Meter (% of Mass Ex,) 0,97% LS 15,000 146 TOTAL GRADING AND SITE PREPARA TION.___.__....................._.......... 24,327 STORM DRAINAGE E1EE 18" RCP T&G Joints 846 LF 38 32,563 24" RCP T&G Joints 554 LF 47 30,542 24" RCP WT Joints 144 LF 53 7,675 30" CMP Riser 1 LF 1,850 1,850 INLETS OUT! ETS Clean Out (Type A-4) 6 EA 2,850 17,100 Curb Inlet (Type B) 2 EA 1,550 3,100 Curb Inlet (Type B-1) 3 EA 2,750 8250 TOTAL STORM DRAINAGE............................................................................ 101,080 Monarche A and B-New Page 3 ~g- 3r Cost Estimate EXHIBIT C 11/5/98 Monarche Drive Segment "A and B" ROADWAY IMPROVEMENTS CURB AND GUTTER 6" Type "G" Curt And Gutter 3,826 LF 6.19 23,683 AC Curt 67 LF 10 670 SUB TOTAL CURB & GUTTER 24,353 FLATWORK Sidewalk 19,809 SF 1,78 35,260 Pedestrian Ramp 9 EA 83 747 SUB TOTAL SIDEWALK 36,007 . PA VEMErvT AND PARKWA YS 3" AC on 7" AS 56,604 SF 1.30 73,585 Import Select Subbase Material 1,000 CY 3 3,000 OTHER STREET IMPROVEMENTS Street Name Sign Posts 1 LS 319 319 Other Sign Posts 1 LS 1,600 1,600 Survey Monuments 2 EA 275 550 Striping 1 LS 385 385 SUB TOTAL PAVEMENT AND PARKWAYS 79,439 TOTAL ROADWAY IMPROVEMENTS..............................._.............................. 139,799 UNDERGROUND UTILITIES TRENCHING Regrade Parkway & Haul Dry Utility 60 HRS - - Trench Spoil SUB TOTAL TRENCHING - STREET LIGHTS Street Lights 44 EA - - Pedestrian Lights 31 EA - - SUB TOTAL STREET LIGHT - UTILITY FEES Eiectric Service 1 LS - - Electric Stub Conduit to Pump Station 1 LS - . Retaining Walls for SDGE Transformers 1 LS - - Irrigation Electric Meters 1 LS - - Irrigation Electric Meters 3 EA - - Gas Service 1 LS - - Telephone Service 1 LS - - SUB TOTAL UTILITY FEES - TOTAL UNDERGROUND UTILITY................................................................. . (Note - Budget reflects Schilling Corporation contract for Paseo Ranchero, East Palomar & Monarche Drive. Contract detail is shown on Paseo Ranchero cost estimate,) 1 ß ".. ;/ ¿7 Monarche A and B-New Page 4 Cost Estimate EXHIBIT C 11t5/98 Monarche Drive Segment "A and 8" RECLAIMED WATER DISTRIBUTION ElEE 6" Class 150 2,235 LF 27 61,172 VALV¡:S 6" 3 EA 690 2,070 . APPURTF=NANCES Air And Vacuum Release Valve 1" 2 EA 1,250 2,500 2" Blowoff 2 EA 1,150 2,300 2" Irrigation Service 7 EA 850 5,950 TOTAL RECLAIMED WATER DiSTRIBUTION................................................ 73,992 WATER DISTRIBUTION ElEE 8" Class 150 273 LF 29.45 8,039,85 10" Class 150 1,926 LF 36,95 71,166 VAL VES 8" 2 EA 860 1,720 10" 7 EA 1,150 8,050 APPURTENANCES Fire Hydrant 4 EA 2,450 9,BOO 2" Blowoff 4 EA 1,180 4,720 Air And Vacuum Release Valve 2" 4 EA 1,780 7,120 TOTAL WA TER DiSTRIBUTION......................:............................................... 110,616 Monarche A and B-New Page 5 98--(/ Cost Estimate EXHIBIT C 11/5/98 Monarche Drive Segment "A and B" LANDSCAPE AND SPECIAL CONSTRUCTION I ANDSCAPF (All comD/ate & in Dlac:e! Supply & Instal/ Planting 1 LS - - Supply & Instal/Irrigation 1 LS - - Supply & Install Decomposed Granite 18,000 SF - - Supply & Instal/ Median Drains 1 LS - - Payment & Performance Bond 1 LS - - . Worker's Comp Waiver of Subrogation 1 LS - - SUB TOTAL LANDSCAPE - TOTAL LANDSCAPE AND SPECIAL CONSTRUCTION............................... - (Note - Budget reflecls Arid West Landscape contract for Paseo Ranchero, E Palomar & Monarche Drive, Contract detail shown on Paseo Ranëhero cost estimate,) Monarche A and B-New Page 6 9g--;¡,¿ ,. ""- -"---- -~-_._._-_.__._-- RESOLUTION NO. /9:<(5). RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CAUFORNIA, AUTIlORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED OBLIGATION IMPROVEMENT BONDS FOR ASSESSMENT DISTRICT NO. 97-2 (OTAY RANCH VILLAGE ONE), APPROVING THE FORM OF BOND INDENTURE, BOND PURCHASE AGREEMENT AND OTHER DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH. WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA is conducting proceedings for the acquisition of certain public improvements in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 97-2 (OTAY RANCH VILLAGE ONE) (the" Assessment District"); and, WHEREAS, this City Council has previously declared its intention to issue bonds to finance the acquisition of such improvements, such bonds to issue pursuant to the terms and provisions of the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California (the "Bond Act"); and, WHEREAS, at this time this City Council desires to,set forth the general terms and conditions reIating to the authorization, issuance and administration of such bonds; and, WHEREAS, there have been presented to and considered and ready for approval by this City Council the forms of the following documents: A. Bond Indenture by and between the City and U.S. Bank Trust National Association, as fiscal agent (the "Fiscal Agent") setting forth the terms and conditions relating to the issuance and sale of bonds (the "Bond Indenture"); B. Bond Purchase Agreement authorizing the sale of bonds to Stone & Youngberg LLC, acting as lead underwriter on behalf of itself and Merrill Lynch, the designated underwriters (the "Bond Purchase Agreement"); C. Preliminary Official Statement containing information including but not limited to the Assessment District and the type of bonds, including terms and conditions thereof (the "Preliminary Official Statement"); and D. Continuing Disclosure Agreement by and between the City and U.S. Bank Trust National Association, as dissemination agent (the "Dissemination Agent"), pursuant to which the City will be obligated to provide annual disclosure relating 1 fC-j - --- to the Assessment District and the Bonds (the "Continuing Disclosure Agreement"); and WHEREAS, this City Council, with the aid of City staff, has reviewed and considered the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement and the Preliminary Official Statement and finds those documents suitable for approval, subject to the conditions set forth in this resoIution; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of the bonds and the levy of the assessments as contempIated by this resolution and the documents referred to herein exist, have happened and have been performed or have been ordered to have been preformed in due time, form and manner as required by the laws of the State of California, including the Bond Act and the applicable policies and regulations of the City. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. Recitals, The above recitals are true and correct. SECTION 2. Bonds Authorized. Pursuant to the Bond Act, this Resolution and the Bond Indenture, limited obligation improvement bonds of the City for the Assessment District designated as "City of Chula Vista Assessment District No. 97-2 (Otay Ranch Village One) Limited Obligation Improvement Bonds" (the "Bonds") in an aggregate principal amount not to exceed the unpaid assessments within the Assessment District are hereby authorized to be issued. The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms, covenants and conditions of the Bonds shall be as provided in the Bond Indenture as finally executed. SECTION 3, Authorization and Conditions. The Director of Finance or such other official of the City as may be designated by this City Council (an "Authorized Officer") is hereby authorized and directed to execute and deliver the various documents and instruments described in this Resolution, in substantially the form approved hereby, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve as being in the best interests of the City and the Assessment District, upon consultation with and review by the City Attorney or his specified designee and Brown Diven Hessell & Brewer LLP, the City's bond counsel. No additions or changes shall, however, authorize the aggregate principal amount of Bonds to exceed the amount of the unpaid assessments, the annual interest rate on the Bonds to exceed seven percent (7. ()() %) per year and the purchase price for the Bonds to be less than ninety eight percent (98 %) of the par amount of the Bonds (excluding original issue discount, if any). The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of such documents or instruments by the Authorized Officer. 2 9C-;¿ __ __ _______ _____ __ _M..___"_ _____ SECTION 4. Bond Indenture. The proposed form of Bond Indenture by and between the City and the Fiscal Agent, with respect to the Bonds as presented to this City Council and on me with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to cause the same to be completed and executed on behalf of the City, subject to the provisions of Section 3 above. SECTION 5. Official Statement and Continuin~ Disclosure A~ment. The City Council hereby approves the form of the Preliminary Official Statement as presented to this City Council and on file with the City Clerk, together with any changes therein or additions thereto deemed advisable by an Authorized Officer. Pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule") an Authorized Officer is authorized to determine when Preliminary Official Statement is deemed final, and an Authorized Official is hereby authorized and directed to provide written certification thereof. The execution of the final Official Statement, which shalI include such changes and additions thereto deemed advisabIe by an Authorized Officer pursuant to the Rule, shall be conclusive evidence of the approval of the final Official Statement by the City. The City Council hereby authorizes the distribution of the final Official Statement by the Underwriters (as defined below) as the initial purchasers of the Bonds. The form of Continuing Disclosure Agreement by and between the City and the Dissemination Agent as presented to this City Council and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to cause the same to be completed and executed on behalf of the City, subject to Section 3 above. SECTION 6. Sale of Bonds. This City Council hereby authorizes and approves the sale of the Bonds by negotiation to Stone & Youngberg LLC and Merrill Lynch (the "Underwriters"). The form of the Bond Purchase Agreement is hereby approved and an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement on behalf of the City upon the execution thereof by Stone & Youngberg LLC on behalf of the the Underwriters, subject to Section 3 above. SECTION 7. Bonds Pre,pared and Delivered. Upon the execution of the Bond Purchase Agreement, the Bonds shall be prepared, authenticated and delivered, alI in accordance with the applicable terms of the Bond Act and the Bond Indenture, and any Authorized Officer and other responsible City officials are hereby authorized and directed to take such actions as are required under the Bond Purchase Agreement and the Bond Indenture to complete alI actions required to evidence the delivery of the Bonds upon the receipt of the purchase price thereof from the Underwriter. SECTION 8; Annual Assessment Installments. A copy of the resoIution confirming the assessments, which assessments shalI constitute the security for the Bonds, shall be delivered to the City Treasurer, and the City Treasurer shall keep or cause to be kept the record showing the several installments of principal and interest on the assessments which are to be collected each year during the term of the Bonds. An annual portion of each assessment, together with annual 3 9c-3 "-- .-.--.....-.-.-.---...-- --~._--- -- -_.._._~._..__...----~.._--_._-- interest on said assessment, shall be payable in the same manner and at the same time and in the same installment as the general property taxes of the County of San Diego and shall be payable and become delinquent at the same time and in the same proportionate amount. Each year the annual installments shall be submitted to the County Auditor for purposes of collection. SECTION 9. Actions. AIl actions heretofore taken by the officers and agents of the City with respect to the establishment of the Assessment District and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and the proper officers of the City are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements, contracts, and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with the Bond Act, this Resolution, the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and any certificate, agreement, contract, and other document described in the documents herein approved, SECTION 10. Effective Date. This resolution shall take effect from and after its adoption. Presented by Approved as to form by Üv--1'Vt~,,-o ~ John P. Lippitt John Kaheny Public Works Director City Attorney 4 9C-f ,.---..,-...... ..----~-- -- -- ------.---...---------------------..-----------..- .. $ CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 (OT A Y RANCH, VILLAGE ONE) LIMITED OBLIGATION IMPROVEMENT BONDS BOND PURCHASE AGREEMENT . 1999 Honorable Mayor and Members of the City Council City of Chu1a Vista Chu1a Vista, California Dear Mayor and Council Members: Stone & Youngberg LLC, acting as lead underwriter on behalf of itself and Merrill Lynch (the "Underwriter"), acting not as a fiduciary or agent for the City of Chula Vista (the "City"), but on behalf of itself, offers to enter into this Bond Purchase Agreement with the City which, upon acceptance by the City, will be binding upon the City and upon the Underwriter, This offer is made subject to the City's acceptance by the execution of this Bond Purchase Agreement and its delivery to the Underwriter at or before 11 :59 p,m., local time, on the date set forth hereinabove, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the City at any time prior to the acceptance hereof by the City, Capitalized terms which are not otherwise defined herein shall have the respective meanings ascribed to them in the Bond Resolution adopted by the City Council on , 1999, together with the Bond Indenture, dated as of , 1999 by and between U,S, Bank Trust National Association (the "Fiscal Agent") and the City (collectively, the "Resolution"), L Purchase, Sale and Delivery of the Bonds, (a) Subject to the terms and conditions and in reliance upon the representations, warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the City, and the City hereby agrees to sell to the Underwriter, all (but not less than all) of the City of Chu1a Vista, California Assessment District No, 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds (the "Bonds"), in the aggregate principal amount set forth above, The Bonds are to be dated the Closing Date (as hereinafter defined), bear interest from said date (payable on March 2 and September 2 in each year commencing on March 2, 2000) at the rates per annum, and mature on the dates and in the amounts, set forth in Exhibit A attached hereto and incorporated in full herein by this reference, The purchase price for the Bonds shall be the percentage of the principal amount thereof which is set forth in Exhibit A, The Bonds shall be substantially in the form described in, shall be issued and secured under the provisions of, and shall be payable and be subject to redemption as provided in, the Resolution and the Improvement Bond Act of 1915 (the "Bond Act"), 606957.2\22245.0079 (b) By official action of its City Council, the City has approved the Preliminary Official Statement relating to the Bonds dated , 1999 (the "Preliminary Official Statement") and has deemed the Preliminary Official Statement to be final as of the date thereof for purposes of the Securities and Exchange Commission's Rule 15c2-12 ("Rule 15c2-12"), except for the infonnation permitted to be omitted therefrom pursuant to Rule 15c2-12; and the City hereby approves the Official Statement, consisting of the Preliminary Official Statement with such changes as are noted thereon and as may be made thereto, with the approval of the City's Bond Counsel and the Underwriter, from time to time prior to the Closing Date, A condition of the offer of the Underwriter made hereby is that the City deliver to the Underwriter within seven business days of the date hereof a sufficient quantity of copies of the Official Statement to enable the Underwriter to comply with the Underwriter's obligations under Rule 15c2-12 (such quantity to be specified by the Underwriter as promptly as practicable after the City's execution of this Bond Purchase Agreement), The City hereby ratifies any prior use and authorizes the future use by the Underwriter, in connection with the offering and sale of the Bonds, of the Preliminary Official Statement, the Official Statement, the Resolution, the Continuing Disclosure Agreement dated as of , 1999 by and among the City, U.S. Bank Trust National Association (the "Disclosure Agent") and the Fiscal Agent (the "Continuing Disclosure Agreement"), this Bond Purchase Agreement and all information contained herein, and all other documents, certificates and statements furnished by the City to the Underwriter in connection with the transactions contemplated by this Bond Purchase Agreement (c) Except as the City and the Underwriter may otherwise agree, the City will deliver to the Underwriter, at 9:00 a,m, local time, on , 1999 or such later date as may be acceptable to the Underwriter (the "Closing Date"): (I) at the offices of The Depository Trust Company in New York, New York, or at such other location as may be designated by the Underwriter, the Bonds, in definitive form duly executed by the City in the manner provided for in the Resolution and the Bond Act; and (2) at the offices of Brown, Diven & Hentschke ("Bond Counsel"), or at such other location as may be designated by the Underwriter, the documents hereinafter mentioned; and the Underwriter will accept such delivery and pay the purchase price of the Bonds in immediately available funds (such delivery and payment being herein referred to as the "Closing"). The Bonds shall be in fully registered form and shall be registered in the name of Cede & Co, and delivered to the offices of The Depository Trust Company not later than 24 hours prior to the Closing, 2, Representation, Warranties and Agreements of the City, The City represents and warrants to and agrees with the Underwriter that: (a) The City is a municipal corporation duly organized and validly existing under the California Constitution and the laws of the State of California and has, and at the Closing Date will have, full legal right, power and authority (I) to enter into this Bond Purchase Agreement, (2) to issue, sell and deliver the Bonds to the Underwriter as provided herein, and (3) to carry out, give effect to and consummate the transactions contemplated by this Bond Purchase Agreement, the Resolution, the Continuing Disclosure Agreement, the Official Statement and any agreements referred to therein. (b) The City has complied with, and will at the Closing Date be in compliance in all respects with, the applicable provisions of the Municipal Improvement Act of 1913 (the "1913 Act"), the Bond Act and all other applicable laws and agreements, 606957.2\22245.0079 2 (c) The City has, or prior to the Closing Date, will have, duly and validly: (1) formed Assessment District No, 97-2 (the "Assessment District"), confirmed the assessments described in the Official Statement, taken all actions necessary to cause said assessments to constitute liens on the respective parcels with respect to which they were confirmed, and adopted the Resolution, (2) approved and authorized the execution and delivery of the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement, the Official Statement and any other applicable agreements; and (3) authorized and approved the performance by the City of its obligations contained in, and the taking of any and all action as may be necessary to carry out, give effect to and consummate the transactions contemplated by, each of said documents, At the Closing Date (assuming due authorization, execution and delivery by the other parties thereto, where necessary) the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement, and any other applicable agreements will constitute the valid, legal and binding obligations of the City, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency and other laws affecting the enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought (d) The City is not, and as of the Closing Date will not be, in breach of or default under any law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, or any applicable court or administrative decree or order or any loan agreement, note, Resolution, contract, agreement or other instrument to which the City is party or is otherwise subject or bound, which breach or default would have a material adverse effect on the City's ability to perform its obligations under the Bond Act, the Bonds, the Resolution, the Continuing Disclosure Agreement, and this Bond Purchase Agreement; and the execution and delivery of the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement, any other applicable agreements and the other instruments contemplated by any of such documents to which the City is a party, and compliance with the provisions of each thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, or any applicable court or administrative decree or order or any loan agreement, note, Resolution, contract, agreement or other instrument to which the City is a party or is otherwise subject or bound in any manner that would materially adversely affect the City's ability to perform its obligations under the Bond Act, the Bonds, the Resolution, the Continuing Disclosure Agreement, and this Bond Purchase Agreement, (e) All approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the City of its obligations hereunder and under the Bond Act, the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement, and any other applicable agreements have been or will be obtained and are or will be in full force and effect (f) The Bonds, the Resolution, the Continuing Disclosure Agreement, and other applicable agreements conform as to form and tenor to the descriptions thereof contained in the Official Statement; and the Bonds, when delivered to and paid for by the Underwriter on the Closing Date as provided herein, will be validly issued and outstanding and entitled to all the benefits and security of the Bond Act and the Resolution. 606957.2\12245.0079 3 (g) The assessments described in the Official Statement have been duly and lawfully levied under and pursuant to the provisions of Article XIII D of the California Constitution and the 1913 Act; and each such assessment constitutes a valid and legally binding lien on the parcel of land in the Assessment District on which such assessment was levied, Notwithstanding the provisions of Article XIII C of the California Constitution, the assessments are not subject to repeal or reduction by action of the City Council or through an initiative measure if the effect thereof would interfere with the timely payment of the principal of and interest on the Bonds, Except as disclosed in the Official Statement, there are no outstanding liens for general (ad valorem) taxes or special taxes or assessment liens against the land in the Assessment District which are senior to the assessment liens referred to in this paragraph. (h) The Official Statement is and will be, as of the Closing Date, true, correct and complete in all material respects; and the Official Statement does not and will not, as of the Closing Date, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, (i) During the period commencing on the date hereof and ending on the date 25 days after the end of the "underwriting period" (as defined in Rule 15c2-12), if any event shall occur as a result of which it may be necessary to supplement the Official Statement in order to make the statements therein, in light of the circumstances existing at such time, not misleading, the City shall forthwith notify the Underwriter of any such event of which the City has knowledge and, if such event requires an amendment or supplement to the Official Statement, the City will at its expense amend or supplement the Official Statement in a form and manner jointly approved by the City and the Underwriter, (j) The City has taken all actions required to be taken by it so that the assessments in the Assessment District and the funds and accounts established pursuant to or referred to in the Resolution and the Bond Act (except the Rebate Fund) are and will be pledged to the payment of the principal of and redemption premium and interest on the Bonds, subject in all cases to the provisions of the Resolution and the Bond Act permitting the application thereof for the purposes and on the terms and conditions set forth therein, (k) No action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, or public board or body is pending, or to the knowledge of the City, threatened, in any way affecting the existence of the City or the titles of its officers to their respective offices or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Resolution, the Bond Act, or the collection or application of assessments pledged or to be pledged to pay the principal of and interest on the Bonds, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bonds, the Resolution, the Continuing Disclosure Agreement, any other applicable agreements, this Bond Purchase Agreement, or any action of the City contemplated by any of said documents, or in any way contesting the completeness or accuracy of the Official Statement or the powers of the City or its authority with respect to the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement or any action of the City contemplated by any of said documents, or in any way seeking to enjoin or restrain the City from approving the development of any of the property within the Assessment District, or which would 606957.2\22245.0079 4 adversely affect the exclusion from gross income for purposes of federal income taxation of interest paid on the Bonds; nor to the knowledge of the City, is there any basis therefor. (I) The City will furnish such information, execute such instruments and take such other action in cooperation with the Underwriter as the Underwriter may reasonably request to qualify the Bonds for offer and sale under the "Blue Sky" or other securities laws and regulations of such states and other jurisdictions of the United States as the Underwriter may designate, provided that the City shall not be required to consent to service of process in any jurisdiction and provided further that no such action shall be at the expense of the City. The City is not responsible for the Underwriter's compliance with or the consequences of failure to comply with applicable "Blue Sky" laws, (m) Any certificate signed by any official of the City authorized to do so shall be deemed a representation and warranty by the City to the Underwriter as to the statements made therein, (n) The City will apply the proceeds of the Bonds in accordance with the Bond Act, the Resolution and all other applicable documents and as described in the Official Statement (0) The City will take any and all actions reasonably necessary to assure the continued exclusion from gross income for purposes of federal income taxation of the interest on the Bonds and will not take any action, or permit any action to be taken with respect to which the City may exercise control, which would result in the loss of that exclusion, 3, Conditions to the Obligations of the Underwriter, The obligations of the Underwriter to accept delivery of and pay for the Bonds on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the City contained herein as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City, as well as of the other individuals referred to herein, made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the City of its obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions: (a) At the Closing Date, the Resolution, the Resolution, the Continuing Disclosure Agreement, and any other applicable agreements shall be in full force and effect, and shall not have been amended, modified or supplemented, except as may have been agreed to in writing by the Underwriter; and there shall have been taken in connection with the issuance of the Bonds and with the transactions contemplated thereby and by this Bond Purchase Agreement, all such actions as, in the opinion of Bond Counsel shall be necessary and appropriate, (b) At the Closing date, the Official Statement shall be in form and substance satisfactory to the Underwriter, (c) At the Closing Date, except as disclosed in the Official Statement no taxes or assessments shall be delinquent on any property within the Assessment District, (d) Between the date hereof and the Closing Date, the market price or marketability of the Bonds shall not have been materially adversely affected, in the judgment of the 606957.2\22245.0079 5 Underwriter, after consultation with the City, its City Attorney, Bond Counsel and the City financial advisor, by reason of any of the following: (I) legislation introduced in or enacted by the Congress or recommended to the Congress by the President of the United States, the Department of the Treasury, the Internal Revenue Service, or any member of Congress, or favorably reported for passage to either House of Congress by any committee of such House to which such legislation has been referred for consideration, or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department of the United States of America or the Internal Revenue Service, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon such interest as would be received by any holders of the Bonds; (2) legislation introduced in or enacted by the Congress or an order, decree or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Resolution is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds, including any or all underlying arrangements, as contemplated hereby or by the Official Statement or otherwise would be in violation of the federal securities laws as amended and then in effect; (3) a general suspension of trading in securities on the New York Stock Exchange, or a general banking moratorium declared by federal or State of California officials authorized to do so, or a war or other national calamity; (4) the withdrawal or downgrading of any rating of any securities of the City by a national rating agency; (5) any amendment to the United States Constitution or the California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting its property, income, securities (or interest thereon), the validity, priority or enforceability of the assessments as contemplated by the Resolution and the Official Statement; or (6) any event occurring, or information becoming known which, in the judgment of the Underwriter after consultation with the City, makes untrue in any material respect any statement or information contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, 606957.2\22245.0079 6 (e) At or prior to the Closing Date, the Underwriter shall have received two counterpart originals or certified copies of the following documents, in each case satisfactory in form and substance to the Underwriter: (I) The Official Statement, executed on behalf of the City by an official of the City reasonably acceptable to the Underwriter; (2) The Resolution and the Continuing Disclosure Agreement, each substantially in the form duly approved by the City and each of which shall not have been further amended or modified (except as may have been agreed to by the Underwriter) and shall be in full force and effect as of the Closing Date; (3) An unqualified opinion of Bond Counsel, dated the Closing Date and addressed to the City, to the effect that the Bonds are the valid, legal, binding obligations of the City and that the interest thereon is excluded from gross income for purposes of federal income taxes and is not a specific preference item for purposes of federal individual and corporate alternative minimum taxes, all as provided in the Official Statement, together with a letter from Bond Counsel, dated the Closing Date and addressed to the Underwriter, to the effect that such opinion may be relied upon by the Underwriter to the same extent as if such opinion were addressed to the Underwriter; (4) An opinion, dated the Closing Date and addressed to the Underwriter, of Bond Counsel to the effect that a) this Bond Purchase Agreement has been duly authorized, executed and delivered by the City, and, assuming due authorization, execution and delivery by the Underwriter, constitutes a legal, valid and binding agreement of the City, enforceable in accordance with its terms, subject to bankruptcy, insolvency, and other laws affecting the enforcement of creditors' rights in general and except as such enforceability may be limited by the application of equitable principles if equitable remedies are sought; b) the Bonds are exempt from the registration requirements of the Securities Act of 1933, as amended; c) the Resolution is exempt from qualification under the Trust Indenture Act of 1939, as amended; d) the statements on the cover of the Official Statement and under the captions "INTRODUCTION," "THE BONDS," "SECURITY FOR THE BONDS" (except the portion thereof entitled "Property Values"), "THE ASSESSMENT DISTRICT," "SPECIAL RISK FACTORS - Proposition 218," "CONTINUING DISCLOSURE," and "LEGAL MATTERS" (except the portion thereof entitled "Absence of Litigation") and in Exhibit B thereto, insofar as such statements sununarize the Bonds, the assessments as security for the Bonds, The Right to Vote on Taxes Act, the Continuing Disclosure Agreement, the opinion of Bond Counsel, and certain provisions of the Resolution, are accurate in all material respects; and e) the assessments in the Assessment District have been duly and lawfully levied under and pursuant to the provisions of Article XIII D of the California Constitution and the 1913 Act and such special assessments, including each installment thereof, are secured by a assessment lien upon the respective parcels assessed, (5) An opinion, dated the Closing Date and addressed to the Underwriter, of Stradling Yocca Carlson & Rauth, a Professional Corporation, to the effect that a) the Bonds are exempt from the registration requirements of the Securities Act of 1933, as amended, b) the Resolution is exempt from qualification under the Trust Indenture 606957.2\22245.0079 7 Act of 1939, as amended, and c) without having undertaken to determine independently the accuracy or completeness of the statements contained in the Official Statement, but on the basis of their participation in conferences with representatives of the City, Bond Counsel, the owners of property within the Assessment District, the Underwriter and others, and their examination of certain documents, nothing has come to their attention which would lead them to believe that the Official Statement as of its date and as of the Closing Date, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (except that no opinion or belief need to be expressed as to any appendices and any other financial and statistical data contained in the Official Statement); (6) Such memoranda of Stradling Y occa Carlson & Rauth, a Professional Corporation as to "Blue Sky" matters as the Underwriter may reasonably require; (7) A certificate, dated the Closing Date and signed by the City Manager of the City or his designee, to the effect that a) the representations and warranties of the City contained herein are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; b) to the best knowledge of said officer, no event has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purpose for which the Official Statement is to be used or which it is necessary to disclose therein in order to make the statements and information therein not misleading in any material respect; and c) the City has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied under this Bond Purchase Agreement, the Bond Act, and the Resolution at and prior to the Closing Date; (8) An opinion, dated the Closing Date and addressed to the Underwriter, of the City Attorney, to the effect that a) no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body, is pending or, to his knowledge, threatened in any way affecting the existence of the City or the titles of its officers to their respective offices, or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Resolution, or the collection or application of the assessments and the interest thereon to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement, or any other applicable agreements or any action of the City contemplated by any of said documents, or in any way contesting the completeness or accuracy of the Official Statement or the powers of the City or its authority with respect to the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement, or any other applicable agreement, or any action on the part of the City contemplated by any of said documents, or in any way seeking to enjoin or restrain the City from approving the development of the property within the Assessment District, or which challenges the exclusion of interest paid on the Bonds from gross income for purposes of federal income taxation, nor to his knowledge is there any basis therefor; b) the City is duly organized and validly existing as a municipality and a political subdivision of the State of California, with full legal right, power and 606957.2\22245.0079 8 authority to issue the Bonds and to perform all of its obligations under the Bonds, the Resolution, the Continuing Disclosure Agreement, and this Bond Purchase Agreement; c) the City has adopted the Resolution and it is in full force and effect; d) the City has duly authorized the execution and delivery of the Official Statement; e) the City has duly and validly approved, executed and delivered the Resolution, the Continuing Disclosure Agreement, and this Bond Purchase Agreement and, assuming due authorization, execution and delivery by the other parties thereto, said documents constitute legal, valid and binding agreements of the City enforceable in accordance with their terms, subject to bankruptcy, insolvency and other laws affecting the enforcement of creditors' rights in general and to the application of equitable principles if equitable remedies are sought; f) the City is not in breach of or in default under any law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, or any applicable court or administrative decree or order or any loan agreement, note, Resolution, contract, agreement or other instrument to which the City is party or is otherwise subject or bound which breach or default would have a material adverse affect on the City's abilities to perform its obligations under the Bond Act, the Bonds, the Resolution, the Continuing Disclosure Agreement, and this Bond Purchase Agreement; g) the execution and delivery of the Bonds, the Resolution, this Bond Purchase Agreement, the Continuing Disclosure Agreement, any other applicable agreements and the other instruments contemplated by any of such documents to which the City is a party, and compliance with the provisions of each thereof, will not conflict with or constitute a breach of or default under any applicable law or administrative rule or regulation of the State of California or the United States of America, or of any department, division, agency or instrumentality of either thereof, or any applicable court or administrative decree or order or any loan agreement, note, Resolution, contract, agreement or other instrument to which the City is a party or is otherwise subject or bound in any manner that would materially adversely affect the City's ability to perform its obligations under the Bond Act, the Bonds, the Resolution, the Continuing Disclosure Agreement, and this Bond Purchase Agreement; h) all approvals, consents, authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to, or the absence of which would materially adversely affect, the performance by the City of its obligations hereunder and under the Bond Act, the Bonds, the Resolution, the Continuing Disclosure Agreement, this Bond Purchase Agreement and any other applicable agreements have been or will be obtained and are or will be in full force and effect; and based upon the information made available to him in the course of his participation in the preparation of the Official Statement and without having undertaken to determine independently or assuming any responsibility for the accuracy, completeness or fairness of the statements contained in the Official Statement, nothing has come to his attention which would lead him to believe that the Official Statement, as of its date and as of the Closing Date, contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any other financial and statistical data contained in the Official Statement); (9) An opinion, dated the Closing Date and addressed to the Underwriter, of counsel to the Fiscal Agent, to the effect that: a) the Fiscal Agent is duly organized and validly existing in good standing as a banking association under the laws of 606957.2\22245.0079 9 the United States with trust powers and full corporate power to undertake the duties of the Fiscal Agent under the Resolution and the Continuing Disclosure Agreement; b) the Fiscal Agent has duly authorized, executed and delivered the Resolution and the Continuing Disclosure Agreement and by all proper corporate action has authorized the acceptance of the duties and obligations of the Fiscal Agent under the Resolution and the Continuing Disclosure Agreement; c) assuming due authorization, execution and delivery by the respective other parties, the Resolution and the Continuing Disclosure Agreement are the valid, legal and binding agreements of the Fiscal Agent, enforceable in accordance with their terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights in general and by general equity principles; d) exclusive of federal or state securities laws and regulations, to the best of his knowledge after reasonable inquiry and investigation, other than routine filings required to be made with governmental agencies in order to preserve the Fiscal Agent's authority to perform a trust business, (all such routine filings he believes, after reasonable inquiry and investigation, to have been made), no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Fiscal Agent is or will be required for the execution and delivery by the Fiscal Agent of the Resolution and the Continuing Disclosure Agreement; and e) to the best of his knowledge, the Fiscal Agent's action in executing and delivering the Resolution and the Continuing Disclosure Agreement does not conflict with or constitute a breach of or default under any applicable law or governmental regulation and, to the best of his knowledge, after reasonable inquiry with respect thereto, does not conflict with or violate any contract to which the Fiscal Agent is a party or any administrative or judicial decision by which the Fiscal Agent is bound; (10) A certificate of an authorized officer of the Fiscal Agent to the effect that a) the Fiscal Agent is a national banking association duly organized and in good standing under the laws of the United States, is authorized to carry out corporate trust powers as Fiscal Agent and has all necessary power and authority to enter into and perform its duties under the Resolution and the Continuing Disclosure Agreement; b) the Fiscal Agent is duly authorized to enter into the Resolution and the Continuing Disclosure Agreement and to authenticate and deliver the Bonds to the Underwriter pursuant to the terms of the Resolution, and the Fiscal Agent has duly executed and delivered the Resolution and the Continuing Disclosure Agreement, and assuming due authorization, execution and delivery by the respective other parties, the Resolution and the Continuing Disclosure Agreement constitute the legally valid and binding obligations of the Fiscal Agent, enforceable in accordance with their terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors' rights generally; c) the Fiscal Agent has duly authenticated and delivered the Bonds to the Underwriter under the Resolution; d) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the banking or trust powers of the Fiscal Agent that has not been obtained is or will be required for the authentication and delivery of the Bonds or the consummation by the Fiscal Agent of its obligations under the Resolution and the Continuing Disclosure Agreement; e) the execution and delivery by the Fiscal Agent of the Resolution and the Continuing Disclosure Agreement and compliance with the provisions thereof has been duly authorized by all necessary corporate action on the part of the Fiscal Agent and, to the best knowledge of the Fiscal Agent, will not conflict with or constitute a breach of or default 606957.2\22245.0079 10 under any law, administrative regulation, court decree, resolution, charter, by-laws or any agreement to which the Fiscal Agent is subject or by which the Fiscal Agent is bound; and f) to the best knowledge of the Fiscal Agent, no litigation is pending or threatened (either in state or federal courts) (i) to restrain or enjoin the execution or delivery of any of the Bonds or (ii) in any way contesting or affecting any authority for the issuance or delivery of the Bonds or the validity or enforceability of the Bonds, the Resolution or the Continuing Disclosure Agreement; (11) A certificate of an authorized officer of the Disclosure Agent to the effect that a) the Disclosure Agent is a national banking association duly organized and in good standing under the laws of the United States and has all necessary power and authority to enter into and perform its duties under the Continuing Disclosure Agreement; b) the Disclosure Agent is duly authorized to enter into the Continuing Disclosure Agreement, the Disclosure Agent has duly executed and delivered the Continuing Disclosure Agreement, and assuming due authorization, execution and delivery by the City and the Fiscal Agent, the Continuing Disclosure Agreement constitutes the legally valid and binding obligation of the Disclosure Agent, enforceable in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors' rights generally; c) the execution and delivery by the Disclosure Agent of the Continuing Disclosure Agreement and compliance with the provisions thereof has been duly authorized by all necessary corporate action on the part of the Disclosure Agent and, to the best knowledge of the Disclosure Agent, will not conflict with or constitute a breach of or default under any law, administrative regulation, court decree, resolution, charter, by-laws or any agreement to which the Disclosure Agent is subject or by which it is bound; and d) to the best knowledge of the Disclosure Agent, no litigation is pending or threatened (either in state or federal courts) in any way contesting or affecting the validity or enforceability of the Bonds or the Continuing Disclosure Agreement; (12) A certificate, dated the Closing Date, of a duly authorized officer of Kadie-Jensen, Johnson & Bodnar (the "Financial Advisor") to the effect that a) the information contained in the Official Statement in the first paragraph under the heading "SECURITY FOR THE BONDS -- Property Values," under the heading "THE ASSESSMENT DISTRICT -- Property Ownership " and in Appendix C is based on data compiled by the Financial Advisor from the records of the County of San Diego, the Appraisal and the Engineer's Report; and b) based upon the information made available to the Financial Advisor in the course of the compilation of such data, and without having undertaken to determine independently or assuming any responsibility for the accuracy, completeness or fairness of such information, nothing has come to the attention of the Financial Advisor which would lead the Financial Advisor to believe that said portions of the Official Statement, as of the date of the Official Statement and as of the Closing Date, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to the appropriateness of the assessed value of any parcel, the Appraiser's opinion of the value of any parcel or the assessment applicable to any parcel); 606957.2\22245.0079 II (13) A certificate, dated the Closing Date, of a duly authorized officer of Berryman & Henigar to the effect that the material contained in the Official Statement under the heading "THE ASSESSMENT DISTRICT, " to the extent that such material pertains to the assessments and the Project, does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (14) A certificate, dated the Closing Date, of a duly authorized officer of Roberts & Roberts and Robert Backer & Associates (collectively, the "Appraiser") to the effect that a) the summary of its appraisal appended to the Official Statement has been so appended with its permission, b) no events have come to the attention of the Appraiser that would materially adversely change the opinion of value set forth in the Appraisal, and c) neither the aforesaid summary of the Appraisal nor the material contained in the Official Statement under the heading "SECURITY FOR THE BONDS - Property Values" contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; (15) a certificate dated the Closing Date and addressed to the Underwriter and the City from Otay Project LLC and Otay Project L.P. (collectively, the "Developer") in substantially the form attached hereto as Exhibit B; (16) an opinion dated the Closing Date and addressed to the Underwriter, and the City, by counsel to the Developer, substantially in the form attached hereto as Exhibit C; (17) A transcript of all proceedings relating to the authorization, issuance, sale and delivery of the Bonds; and (18) Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter or Bond Counsel may reasonably request, All the opinions, letters, certificates, instruments and other documents mentioned in this section or elsewhere in this Bond Purchase Agreement shall be deemed to be in compliance with the terms hereof if, and only if, they are in form and substance satisfactory to the Underwriter, If any of the conditions to the obligations of the Underwriter contained in this section or elsewhere in this Bond Purchase Agreement shall not have been satisfied when and as required herein, all obligations of the Underwriter hereunder may be terminated, at, or at any time prior to, the Closing Date by written notice to the City, except that the respective obligations of the Underwriter and the City set forth in Section 4 hereof shall continue in full force and effect. 4, Expenses, (a) Whether or not the Underwriter accepts delivery of and pays for the Bonds as set forth herein, the Underwriter shall be under no obligation to pay, and the City shall payor cause to be paid out of any legally available funds of the City all expenses incident to the performance of the City's obligations hereunder, including but not limited to: the cost of printing, engraving and delivering the Bonds to the Underwriter; the cost of printing, distribution and 606957.2\22245.0079 12 delivery of the Preliminary Official Statement and the Official Statement in such reasonable quantities as may be requested by the Underwriter; the fees and disbursements of the Fiscal Agent, the Escrow Agent, the Disclosure Agent and Bond Counsel, and any accountants, engineers, appraisers, financial advisors or other experts or consultants the City has retained in connection with or the Bonds; and any other expenses not specifically enumerated in paragraph (b) of this section incurred in connection with the issuance of the Bonds, (b) Whether or not the Bonds are delivered to the Underwriter as set forth herein, the City shall be under no obligation to pay, and the Underwriter shall pay the cost or preparation of any "Blue Sky" or legal investment memoranda; expenses to qualify the Bonds for sale under any "Blue Sky" or other state securities laws; and all other expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically emunerated in paragraph (a) of this section), including the fees and disbursements of its counsel and any advertising expenses. 5, Notices. Any notice or other communication to be given to the City under this Bond Purchase Agreement may be given by delivering the same in writing to the City Manager of the City at 276 Fourth Avenue, Chula Vista, California 92010; and any notice or other communication to be given to the Underwriter under this Bond Purchase Agreement may be given by delivering the same in writing to Stone & Youngberg LLC, 4350 La Jolla Village Drive, Suite 140, San Diego, California 92122, Attention: L. William Huck, 6, Parties in Interest. This Bond Purchase Agreement is made solely for the benefit of the City and the Underwriter (including successors or assignees of any Underwriter) and no other person, including but not limited to any owner of land within the Assessment District, shall acquire or have any right hereunder or by virtue hereof. 7, Survival of Representations and Warranties, The representations and warranties of the City set forth in or made pursuant to this Bond Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Bond Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and statements of the City and regardless of delivery of and the payment for the Bonds, 606957.2\22245.0079 13 8, Effective, This Bond Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the City and shall be valid and enforceable as of the time of such acceptance, Very truly yours, STONE & YOUNGBERG LLC By: Authorized Representative Accepted: CITY OF CHULA VISTA, CALIFORNIA By: Approved as to Form: By: City Attorney 606957.2\22245.0079 14 EXHIBIT A MATURITY SCHEDULE Maturity (September 2) Amount Interest Rate The purchase price of the Bonds shall be $ an amount equal to approximately % of the principal amount thereof. 606957.2\22245.0079 A-I EXIllBIT B CERTIFICATE OF DEVELOPER OF LAND WITHIN THE DISTRICT [CLOSING DATE] Stone & Youngberg LLC 4350 La Jolla Village Drive, Suite 140 San Diego, CA 92122 City of Chu1a Vista 276 Fourth Avenue Chu1a Vista, CA 92010 Re: $ City of Chula Vista Assessment District No. 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds Ladies and Gentlemen: The undersigned authorized representatives of Otay Project LLC, a California Limited Liability Company, and Otay Project LP" a California Limited Partnership (collectively, the "Developer"), hereby certifies that: L The Developer is the owner of a substantial portion of the land within Assessment District No, 97-2 (Otay Ranch, Village One) of the City of Chula Vista (the "District"), as described in the Preliminary Official Statement of the City of Chula Vista dated ,1999 relating to the above-captioned Bonds and the final Official Statement related thereto dated , 1999 (the "Official Statement"). The Developer is proceeding with all reasonable speed to develop the land it owns in the District for sale to other builders or to the general public, 2, The Developer covenants that, while the Bonds are outstanding, the Developer will not bring any action, suit, proceeding, inquiry or investigation at law or in equity, before any court, regulatory agency, public board or body which in any way seeks to challenge or overturn the District, the levy of the Assessment in accordance with the revised assessment contained in Resolution No, previously adopted by the City (the" Assessment") or the validity of the Bonds, or the proceedings leading up to their issuance. The foregoing covenant shall not prevent the Developer from bringing an action or suit contending that the Assessment has not been levied in accordance with its terms, 3, Any and all information submitted by the Developer to the City and the Underwriter in connection with the preparation of the Preliminary Official Statement dated , 1999 and the Official Statement, and any and all information submitted by the Developer to the 606957.2\22245.0079 B-1 Assessment Engineer and the Appraiser, was, to the best of the Developer's knowledge, true and correct when given and remains true and correct as of the date hereof, 4, The statements relating to the Developer, its proposed development in the District, its property ownership and its contractual arrangements contained in the Official Statement do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, 5, No proceedings are pending or, to the best of the Developer's knowledge, threatened in which the Developer or any of its members may be adjudicated as bankrupt or discharged from any or all of their debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts, 6. Except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body, is pending or, to the best of the Developer's knowledge, threatened, in any way seeking to restrain or enjoin the development of the Developer's property within the District or in any way seeking to invalidate or set aside any final or vesting tentative maps on land it owns in the District, 7, Except as disclosed in the Official Statement, to the best of the Developer's knowledge, no other public debt secured by a tax or assessment on the land in the District is in the process of being authorized and no assessment districts or community facilities districts have been or are in the process of being formed which include any portion of the land within the District. 8, Except as disclosed in writing to the Underwriter and the City, to the best of the Developer's knowledge, based upon due inquiry, there are no events of monetary default or events which with the passage of time would constitute a monetary default under any loan or similar credit arrangement to which the Developer or any of its members is a party or to which any of its properties are subject. 9, The Developer has duly authorized and executed the Continuing Disclosure Undertaking, and such Continuing Disclosure Undertaking is the valid obligation of the Developer, enforceable against the Developer in accordance with its terms, and none of the documents which govern the Developer would cause such Continuing Disclosure Undertaking to be invalid or unenforceable against the Developer in accordance with its terms; and no event has occurred which, with the passage of time, would constitute a default by the Developer of any of its obligations under the Continuing Disclosure Undertaking, 10, All capitalized terms not otherwise defined herein shall have the meaning set forth in the Bond Purchase Contract dated , 1999, , a By: Its: 606957.2\22245.0079 B-2 606957.2\22245.0079 B-3 EXIllBIT C OPINION OF DEVELOPER COUNSEL [CLOSING DATE] Stone & Youngberg LLC 4350 La Jolla Village Drive, Suite 140 San Diego, CA 92122 City of Chu1a Vista 276 Fourth Avenue Chula Vista, CA 92010 Re: $ City of Chula Vista Assessment District No. 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds Ladies and Gentlemen: We have acted as special counsel for Otay Project LLC, a California Limited Liability Company, and Otay Project LP" a California Limited Partnership (collectively, the "Developer"), in connection with its participation in a development (the "Development"), located in the incorporated area of the City of Chu1a Vista (the "City"), and in connection with the above- referenced bonds (the "Bonds") being issued by the City for Assessment District No. 97-2 (Otay Ranch, Village One) of the City (the "District"). The Bonds are being sold to Stone & Youngberg LLC and Merrill Lynch (collectively, the "Underwriter") as the underwriter (the "Underwriter"), All capitalized terms used but not otherwise defined in this opinion have the respective meanings ascribed to those terms in the Resolution (as hereinafter defined), In rendering the opinions hereinafter expressed, we have reviewed and examined the following documents: L The Bond Purchase Contract, dated as of , 1999, between the Underwriter and the City (the "Bond Purchase Contract"); 2, all documents constituting the Proceedings, as defined in the Bond Purchase Contract; 3, the Official Statement, dated , 1999, relating to the Bonds (the "Official Statement"); 4, the Certificate of Developer, dated , 1999, executed by the Developer pursuant to the Bond Purchase Contract; 606957.2\22245.0079 C-l 5, the Continuing Disclosure Undertaking referenced in the Certificate of Developer described in (4) above (the "Developer Documents"); 6. the certificates of the Developer (a copy of which is attached hereto), of public officials, and of other persons (collectively, the "Certificates") and such other agreements and documents as we deemed necessary in order to render the opinions set forth below, In conducting our examination, we have assumed, without investigation: (i) the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies, and the authenticity of the originals from which such copies were made; and (ii) that there are no oral or written terms or conditions agreed to by the City and the Developer which would expand or modify the respective rights and obligations of the City or the Developer with respect to the District and the Bonds as described in the Official Statement or which would have an effect on the opinions rendered herein. We have made such examination of California law and the law of the United States of America as we deem relevant for the purposes of this opinion, We have not considered the effect, if any, of the laws of any other jurisdiction upon the matters covered by this opinion, Based on and subject to the foregoing, and based on our examination of such questions of law as we have deemed appropriate under the circumstances, we are of the opinion that: (i) the Developer is a duly formed and validly existing limited partnership under the laws of the State of California, is duly qualified to transact business in the State of California, and is possessed of full power and City to conduct its business as presently conducted and as contemplated to be conducted by the Official Statement and to own its properties (including, without limitation, the Development); (ii) the Developer has full power and City to execute, deliver and perform the Developer Documents (the "Developer Documents"), and the Developer Documents have been duly authorized, executed and delivered on behalf of the Developer, and when executed by the other parties thereto will be the legally valid and binding obligations of the Developer enforceable in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws, or by legal or equitable principles relating to or limiting creditors' rights generally; (iii) the execution and delivery of the Developer Documents and compliance with the provisions thereof by the Developer will not result in a violation of, a breach of, or a default under any indenture, mortgage, deed of trust, note, lease, commitment, agreement or other instrument to which the Developer is a party, or, to our knowledge, any order, rule or regulation of any court or other govennnental body having jurisdiction over the Developer, the breach of which might have a materially adverse effect on the ability of the Developer to perform its obligations under the Developer Documents; (iv) to our knowledge, there is no action, suit, proceeding, inquiry or investigation by or before any court, governmental agency, public board or body, pending or threatened, against the Developer (A) which affects or seeks to prohibit, restrain or enjoin the development by the 606957.2\22245.0079 C-2 Developer of the Development, or (B) in which the Developer or any of its members may be adjudicated as bankrupt or discharged from any or all of its debts or obligations or granted an extension of time to pay its debts or a reorganization or readjustment of its debts; and (v) to our knowledge, the statements contained in the Official Statement relating to the Development and the Developer (excluding therefrom the financial and statistical data included therein) do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except as to financial information contained therein, as to which no view is expressed). Although some members of the firm are licensed to practice law in other jurisdictions, we do not purport to be experts in, or to express any opinion herein concerning, any law other than the law of the State of California and the federa11aw of the United States of America, This opinion is limited to the matters expressly set forth herein, and no opinion is implied or may be inferred beyond the matters expressly stated herein, This opinion is as of the date shown above, We have not undertaken, and hereby disclaim any obligation, to advise the addressees of any change in any matter stated in this opinion, This opinion is furnished solely for the benefit of addressees and may not be relied upon by any other person nor may this opinion or any copy hereof be distributed to any other person, without our prior written consent, which consent will not be unreasonably withheld or delayed, Respectfully submitted, 606957.2\22245.0079 C-3 PRELIMINARY OFFICIAL STATEMENT DATED .1999 NEW ISSUE - BOOK-ENTRY ONLY NOT RATED In the opinion of Brown, Diven Hessel/ & Brewer LIP, Bond Counsel, based on an analysis of existing laws, regulations, rulings and court decisions, and assumin!f:ì, oman" other matters, compliance with certain covenants, interest on the Bonds is excludedfrom gross income for federal income tax purposes un er See Ion 103 afthe Internal Revenue Code ff 1986 and is exemfitfrom State oiCalifornj~rsonal income taxes. In the further opinion of Bond Counsel, interest on the Bonds is not a speci IC preference item or purposes oJ federal in Ividual or corporate alternate minimum taxes, although Bond Counsel observes that such ¡meres is included in adjusted current earnings in calculating federal corpprate alternative minimum taxable income. Bond Counsel expresses no o~inion riardin~any other/ideral or state income tax consequences relating to the ownership or disposition oj, or the accrual or receipt of interes on, the onds. ee "LEG L MA1TERS -- Tax Exemption" herein. $12,240,000* CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 (OT A Y RANCH, VILLAGE ONE) LIMITED OBLIGATION IMPROVEMENT BONDS Dated: Date ofInitial Delivery Due: September 2, as shown below The City of Chula Vista Assessment District No. 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds (the "Bonds") are being issued pursuant to the provisions of the Improvement Bond Act of 1915 (the "Act"), a resolution of the City Council of the City ofChula Vista, California (the "City") and a bond indenture dated as of . 1999 (the "Bond Indenture"). The City has previously fanned its Assessment District No. 97-2 (Otay Ranch, Village One) (the "Assessment District"), confirmed assessments on the properties located therein and determined to issue bonds to finance the cost of constructing and acquiring certain public improvements benefiting such properties. Under the provisions of the Act, installments of the assessments and interest thereon in an amount equal to annual debt service on the Bonds are to be included on the regular County of San Diego tax bills sent to owners of property against which there are unpaid assessments. These annual installments and interest thereon are to be paid into a Redemption Fund established for the Bonds to be held pursuant to the Bond Indenture by U.S. Bank Trust National Association as fiscal agent for the Bonds (the "Fiscal Agent") and used to pay debt service on the Bonds as it becomes due. The Bonds are to be delivered in fully registered form and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). Individual purchases may be made in principal amounts of $5,000 and integral multiples thereof and will be in book-entry form only. Purchasers of Bonds will not receive certificates representing their beneficial ownership of the Bonds but will receive credit balances on the books of their respective nominees. The Bonds will not be transferable or exchangeable except for transfer to another nominee of DTC or as otherwise described herein. Interest on the Bonds will be payable semiannually on each March 2 and September 2, commencing March 2, 2000. Principal of and interest on the Bonds will be paid by the Fiscal Agent to DTC for subsequent disbursement to DTC Participants, and such DTC Participants are to remit such payments to the beneficial owners of the Bonds. The Bonds are subject to redemption prior to maturity, all as further described under the heading ~'THE BONDS - Redemption of Bonds." Initially, $ of the Bond proceeds will be deposited to the Escrow Account of the Improvement Fund, and such amount will be applied to redeem Bonds, without premium, on March 2, 2002, unless certain events occur permitting the release of amounts from the Escrow Account. See "SECURITY FOR THE BONDS - Escrow Account." To provide funds for payment of the Bonds and the interest thereon in the event of a delinquency in the payment of assessment installments, the City will establish a Reserve Fund for the Bonds and will deposit therein an amount equal to [10%] of the original principal amount of the Bonds not deposited to the Escrow Account. Upon the occurrence of a delinquency, the City has a duty to direct the Fiscal Agent to transfer the amount of the delinquency from the Reserve Fund into the Redemption Fund. There is no assurance that funds will be available for this purpose; and if, during the period of delinquency there are insufficient moneys in the Reserve Fund, a delay may occur in payments to the owners of the Bonds. No funds of the City other than the Reserve Fund will be available to cure any deficiency which may occur in the Redemption Fund. The City has determined not to advance available funds from the City treasury to cure any such deficiency. However, the City has covenanted under certain circumstances to order and cause to be commenced judicial foreclosure proceedings in the year in which delinquencies occur. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS OR THE INTEREST THEREON, AND NO OWNER OF THE BONDS MAY COMPEL THE EXERCISE OF THE TAXING POWER BY THE CITY OR THE FORFEITURE OF ANY OF ITS PROPERTY. THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS ARE NOT A DEBT OF THE CITY NOR A LEGAL OR EQUITABLE PLEDGE, CHARGE, LIEN OR ENCUMBRANCE UPON ANY OF ITS PROPERTY OR UPON ANY OF ITS INCOME, RECEIPTS OR REVENUES OTHER THAN THE ASSESSMENTS. The purchase of the Bonds involves significant risks, and the Bonds are not appropriate investments for all investors. See the section of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of certain risk factors that should be considered. in addition to the matters set forth herein, in evaluating the investment quality of the Bonds. MATURITY SCHEDULE (See Inside Cover Page) This cover cage contains certain infonnation for rgneral reference only. It is not a summ~ of this financing. Prospective investors must read the entire Official Sta ement to obtain information essential the making ofan infonned investment decision. The Bonds are offered when, as and if issued and accepted by lhe Underwriters, subject to the approval as to their legality by Brown, Diven, Hessel! & Brewer LLP, Solana Beach, California, Bond Counsel, and certain other conditions. Certain legal matters will be passed onfor the Underwriters by their counsel, Stradling Yocca Carlson & Rauth, a Professional Corporalion, Newport Beach, California and for the City by the City Attorney. It is anticipated that the Bonds in book-entry form will be available for delivery to DTC in New York, New York on or about .1999. Stone & Youngberg LLC Merrill Lynch Capital Markets Dated: ,1999 II 598187.12\22245.0079 MATURITY SCHEDULE' Due Principal Interest Due Principal Interest (September 2) Amount Rate Yield (September 2) Amount Rate Yield ... Preliminary, subject to change. 598187.12\22245.0079 ___"_____" __m___"" No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations other than as contained in this Official Statement, and if given or made, such other information or representations must not be relied upon as having been authorized by the City, This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale, This Official Statement is not to be construed as a contract with the purchasers of the Bonds, Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact The information set forth herein has been obtained from sources which are believed to be reliable, but such information is neither guaranteed as to accuracy or completeness, nor to be construed as a representation of such by the City or the Underwriters, The information and expressions of opinion stated herein are subject to change without notice, The delivery of this Official Statement shall not, under any circumstances, create any implication that there has been no change in the affairs of the City or the major property owners in the Assessment District or in the condition of the property in the Assessment District since the date hereof. All summaries of the Bonds, the resolution authorizing their issuance and the other documents discussed herein are made subject to the provisions of such documents and do not purport to be complete statements of any or all of the provisions thereof. Reference is hereby made to the Bonds, said resolution and such documents on file with the City Clerk for further information, This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET, SUCH STABILIZING, IF COMMENCED, MAYBE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES SET FORTH ON THE FRONT COVER HEREOF AND SAID PUBLIC OFFERING PRICES MAYBE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS. 598187.12\22245.0079 TABLE OF CONTENTS Page INTRODUCTION,,,........m..m.,....................,.,,,.......m............,"""""..m.mmmm..mmm....'........................'.'""",,1 PURPOSE OF THE BONDS......",........,............................ ........,........................... ..... ......,........................... ....,............... 1 THE ASSESSMENT DiSTRICT.......... ..............,....................... ......,....,............................................... .................... ..",,,, I SOURCES OF PAYMENT OF THE BONDS ........",,,,.................... ..,,,,.................................................. ......,............. .........2 DESCRIPTION OF THE BONDs................... ......,,,,....................... ..",....",..................................... ...................... ...........3 TAX EXEMPTION .............................................................................",,,,,....,...................,....,,,,,,,..................",...........3 PROFESSIONALS INVOLVED IN THE OFFERING.. ..",,,,................... ......",,,,..,.................... .............,................ ,.............4 CONTINUING DISCLOSURE.................................. ....,....................... .................. ..,.. ...... ,..............................................4 BOND OWNERS' RiSKS....................................... ..,........................... ..",.......... ..... ..,..............,.................. ..,...............4 OTHER INFORMATION ........................................ ..,....",.................... ..,,,,,................ ................,..................................4 THE BONDS .......................................m......"'............................................................mmm....""..".,..........................5 AUTHORITY FOR ISSUANCE ....",..,............................. ..,..,......................... ....,....",................,.................. ......,............5 GENERAL DESCRIPTION ,...... ...........",........................ ........,............................ ....,......",......................... ....................5 REDEMPTION OR PURCHASE OF BONDS ,....",.................. ......",.......................... ....,,,,........................... .....................,6 BOOK-ENTRY SySTEM,.................... ...........,..................... .",____........................................................... ",...................7 DISCONTINUATION OF BOOK-ENTRY-ONLY SYSTEM; PAYMENTS TO OWNERS ........................................,................8 INVESTMENTS....,................................................,...........................,...........................................................................8 ESTIMATED SOURCES AND USES OF FUNDS.....................................m...................................................mm..8 SECURITY FOR THE BONDS m......................................m"""",.........................................mm"""",....................9 ASSESSMENTS............... ,,,,....................................... ............................... ............,......................................................9 RESERVE FUND.......... ..'....",m.................................... .................................... ....,........,........................... ..,...............9 THE ESCROW ACCOUNT .............,..",........................................................................................................................1 0 FORECLOSURE PROCEEDINGS ..,........................................ ..,.................................................................................... ,11 PROPERTY V ALUES ..,,,,..,.....................,,,,....,..........................,,,.....................................................",...................... 12 THE ASSESSMENT DISTRICT .'""."...........................'."""'m.............................m..........m...............................,,15 GENERAL DESCRIPTION .............................. ....m..'...................... ..,,,,.................................. ,....",..,.......................... 15 PROPERTY OWNERSIllP .................................. ..,,,,,,,....................... ....,..",..",................... ........................... ....,........ 1 7 SOLD PROPERTY,............ ......",............................. ...",,,,...................... ..............",......,......,...................................... 19 OWNED BY DEVELOPER OR AFFILIATE........................",...............................................,..,.......................,...............20 PERMITTED LAND USE ......... ..",......,............................. ....",................................................................ ,...................21 TAX DELINQUENCIES .....................", ..........,...................... ......,............................................................................... 21 ESTIMATED DIRECT AND OVERLAPPING INDEBTEDNESS........ ..",..................................................... ....,.............. ,,,,,22 THE OTA Y RANCH PROJECT .........'""",.............................'m......................................m..................................24 GENERAL DESCRIPTION OF THE OTA Y RANCH PROJECT ..................",....""........................",,,,......,........................25 THE DEVELOPER....... ......,......",............................... ..,........................... ......................,,,,,...................................... .25 PROPOSED DEVELOPMENT AND DEVELOPER'S PRO-FORMA,..................................................................,.................26 MARKET ABSORPTION STUDy.................. ............................. ..,..,..................................................... ....",............. ,,,,29 CURRENT STATUS OF DEVELOPMENT.............. ............................ ............................................... ........,............. ........30 CONSTRUCTION ST ATUS...........................................",............................""....................................................,........31 CERTAIN LIMITATIONS ON DEVELOPMENT PHASING.... ..,..,..,.......................... ...."" ............................... ..................33 SPECIAL RISK F ACTORS .............'".......................'""",......................m.'......................m.............................m..38 LIMITED OBLIGATIONS; FAILURE TO PAY ASSESSMENT INSTALLMENTS ......................,..",..",................................38 DELINQUENCY RESULTING IN ULTIMATE OR TEMPORARY LOSS ON BONDS ",..........,..............,...............................39 NON-CASH PAYMENTS OF ASSESSMENTS ................. ..,............................... ..",....,,,,,,,..............................,,,............40 DIRECT AND OVERLAPPING INDEBTEDNESS.................... ........,........................................................... ....,................40 PROPERTY V AWES ...................... ...,..........",..................... ........,.......................................................",................ ...40 BANKRUPTCY AND FORECLOSURE DELAYS ....,....................... ...................................................... ,....",............. ...... 41 598187.12\22245.0079 -i- TABLE OF CONTENTS (continued) Page F A[LURE TO DEVELOP LAND; GROWTH AND ENTITLEMENT RESTRICTIONS.............................................",.............42 FuTuRE LAND USE REGULATIONS AND GROWfH CONTROL INITIATIVES ................",..",.......................,................42 ENDANGERED SPECIES ........,..............,...................... ........,........................... ..................,..................... ..",..............43 GEOLOGIC, TOPOGRAPHIC AND CLIMATIC CONDITIONS ....uu............................ ..,......,......................... ...................44 HAzARDOUS SUBSTANCES........... ........",..,........................ ..,,,,............................................................ ....,...............44 No ACCELERATION PROVISION............ ........,...................... ..,..,....................................................... ................... ..,.. 44 BALLOT INITIATIVES................................ .......",.................. ..,....",.....................................................",.............. ....44 PROPOSITION 218....................................... ...........,.................. ................................................... ..,....,.............. ..,,,,.45 YEAR 2000 COMPLIANCE............................. .....",..................... ....,............................................... ................... ........ 45 Loss OF TAX EXEMPTION............................... ........,................. .....,,,,,,,.................................. ......,................. ..,......46 LIM[TED SECONDARY MARKET.......................... ...,,,,...................... ........,..,....................... ",,,,..,..,.................,........46 NO RA TINGS .....".'"..........................................".'........................................................................................."""",,47 CONTINUING DISCLOSURE.....................................................""""""""",........................................................47 LEGAL MATTERS..........."..........................................""......,..... ,.........................................'..',..........."""""........48 TAX EXEMPTION..................... ............,,,,,......................... ....",........................................................ .................. ...... 48 ABSENCE OF LITIGATION.................. ..........",........................ .....",................................................",................ ........ 49 LEGAL OPINION.. ..",,,,...................... ........",..",..................... ..",,,,,..,............................................ ..,..,.............. ....,..49 UNDERWRITING........"....................................................................................,..."""..........................................,.,50 PROFESSIONAL FEES .................................................",..................................................................................,.,.,50 MISCELLANEOUS ..........................""",..............................'""",.................................................."""".................50 APPENDIX A: INFORMATION REGARDING THE CITY OF CHULA VISTA, CALIFORNIA",..",... A-I APPENDIX B: PROPOSED FORM OF OPINION OF BOND COUNSEL ,,,,..,,,......,..,..,....,....,..,..,,,..,,,.., B-1 APPENDIX C: ASSESSMENT LIENS AND VALUES ....,......,..,..,......,..,..,..'",..,..",,,,,,,,,,......................., C-I APPENDIX D: APPRAISAL .............,..........................,.................................................,..,..........,....,....,...... D-1 APPENDIX E: SUMMARY OF MARKET ABSORPTION STUDy..,..,,,,...........,.............................,,,.... E-I APPENDIX F: INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY,..",..,.........,F-I APPENDIX G: CITY'S CONTINUING DISCLOSURE CERTIFICATE .............",,,,,,,..,.......................... G-I APPENDIX H: DEVELOPER'S CONTINUING DISCLOSURE UNDERTAKING..",..",..,....,..,....,......., H-I 598[87. [2122245.0079 -Îi- CITY OF CHULA VISTA, CALIFORNIA CITY COUNCIL Shirley Horton, Mayor Patty Davis, Councilmember Steve Padilla, Councilmember Mary Salas, Councilmemher John Moot, Councilmemher CITY STAFF Dave Rowlands, City Manager Sid Morris, Assistant City Manager George Krempl, Deputy City Manager Beverly Authelet, City Clerk John Kaheny, City Attorney Robert Powell, Director of Finance BOND COUNSEL Brown, Diven, Hessell & Brewer LLP Solana Beach, California FINANCIAL ADVISOR Kadie-Jensen, Johnson & Bodnar San Diego, California ASSESSMENT ENGINEER Berryman & Henigar San Diego, California MARKET ABSORPTION ANALYST The Meyers Group Solana Beach, California APPRAISER Robert Backer & Associates San Diego, California FISCAL AGENT U.S, Bank Trust National Association Los Angeles, California 598187.12\22245.0079 $12,240,000' CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 (OTAY RANCH, VILLAGE ONE) LIMITED OBLIGATION IMPROVEMENT BONDS INTRODUCTION The purpose of this Official Statement, which includes the cover page, the table of contents and the attached appendices (collectively, the "Official Statement"), is to provide certain infonnation concerning the issuance of the City of Chula Vista Assessment District No, 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds (the "Bonds"), This Introduction is not a summary of the Official Slatemenl. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the remainder of the Official Statement and the documents summarized or described herein. The offering of the Bonds 10 potential investors is made only by means of the entire Official Statement, and potential investors should thoroughly review it prior to purchasing Bonds. Purpose of the Bonds The Bonds are being issued pursuant to the Improvement Bond Act of 1915 (the "Act"), a resolution of the City Council of the City of Chula Vista, California (the "City) adopted on November 24, 1998 and a Bond Indenture dated as of , 1999 (the "Bond Indenture") entered into by and between the City and U's, Bank Trust National Association (the "Fiscal Agent"), The Bonds are being issued to finance certain public infrastructure improvements benefiting the assessed parcels, See "ESTIMATED SOURCES AND USES OF FUNDS" herein, The Assessment District Assessment District No. 97-2 of the City (the "Assessment District") is located in the eastern portion of the City, approximately five miles east of the San Diego Freeway (1-5) and two miles east of the Inland Freeway (I-805) on Telegraph Canyon Road. As of April 30, 1999, the Assessment District consisted of 14 currently vacant parcels, partially improved parcels and approximately 25 completed single family units with unpaid assessments totaling $13,740,452.51. Under current land use entitlements, the 533,7 acres within the Assessment District are proposed to be improved with approximately 1,567 single-family residences, 1,170 multifamily residences and 8.1 acres of commercial development The remaining acreage in the Assessment District will be used for parks, schools, open space, roads and community purpose facilities, such as churches and day care operations. The master developer of the property in the Assessment District is Otay Project, LLC, a California Limited Liability Company, and its 99.9% owned affiliate Otay Project L.P" a California Limited Partnership (collectively, the "Developer"). For certain infonnation concerning the Developer, see "THE OTA Y RANCH PROJECT - The Developer." The Assessment District is a small portion of a 23,000-acre area of the City known as the "Otay Mesa:' The Otay Mesa is being developed by the Developer and other landowners. The Developer owns approximately 5,000 acres of the Otay Mesa knows as the "Otay Ranch." The land use entitlements for the Otay Ranch pennit development of the 5,000 acres in sub-areas known as "villages:' The Assessment District is located within Village One. The Developer plans to develop the remaining acres that it owns in Otay Ranch over a period of 15 to 20 years. The Developer also is currently developing portions of the Otay Ranch known · Preliminary, subject to change, 598187.12\22245.0079 I as "Village One West" and "Village Five," which are adjacent to the Assessment District See "THE OT A Y RANCH PROJECT." The Developer has sold 256 of its 349,6 total developable acres in the Assessment District to six builders, Approximately 93.2 developable acres remain under the ownership of the Developer. South Bay Project LLC, one of the members of the Developer, owns an additional 6,6-acre multifamily site in the Assessment District, A list of all parcels in the Assessment District and the respective assessments applicable to them, together with certain infonnation on the value of the parcels, is set forth in Appendix C - "ASSESSMENT LIENS AND VALUES." The aggregate assessed value of the parcels with unpaid assessments, as shown on the assessment roll for fiscal year 1998-1999, is approximately $18,341,000, Because of the method by which assessed values are computed under California law, assessed values do not necessarily reflect current market values, See "SECURITY FOR THE BONDS - Property Values," In order to provide additional infonnation on the value of all developable parcels within the Assessment District (collectively, the "Appraised Properties"), the City has obtained an appraisal (the "Appraisal") rrom the finn of Robert Backer & Associates, San Diego, California (the "Appraiser"), The Appraisal sets forth, among other things, the Appraiser's estimate of the market value of the Appraised Properties as of March 1, 1999, Based upon the assumptions and subject to the qualifications and limitations set forth in the Appraisal, the Appraiser has estimated the market value of the Appraised Properties to be $108,775,000, See Appendix E - "APPRAISAL REPORT", The Appraised Value is approximately _ times the total unpaid assessment liens applicable to the properties within the Assessment District; however, the ratio of the assessed value or appraised value of a parcel to the assessment applicable thereto varies considerably Ihroughoutlhe Assessment District, and some of the ratios are lower; additionally, certain other overlapping debt encumbers the Appraised Properties. See "SECURITY FOR THE BONDS - Property Values," "THE ASSESSMENT DISTRICT - Property Ownership" and "- Estimated Direct and Overlapping Indebtedness" and Appendix C - "ASSESSMENT LIENS AND VALUES." Sources of Payment of the Bonds The Bonds are secured by the unpaid assessments applicable to all properties within the Assessment District, and the unpaid assessments, together with interest thereon, constitute a trust fund for the redemption and payment of the principal of and interest on the Bonds, The unpaid assessments represent liens on such properties. They do not, however, constitute a personal indebtedness of the respective owners of such properties. In addition, all the Bonds are secured by the moneys in the Redemption Fund and the Reserve Fund created pursuant to the Bond Indenture and are payable exclusively out of the Redemption Fund, Under the provisions of the Act, installments of the assessments and interest thereon sufficient to pay annual debt service on the Bonds are to be included on the regular property tax bills prepared by the County of San Diego and sent to owners of properties against which there are unpaid assessments. These annual installments and interest thereon are to be paid into the Redemption Fund held by the Fiscal Agent and used to pay principal of and interest on the Bonds, To provide funds for payment of the Bonds and the interest thereon in the event of any delinquent assessment installments, the City will establish the Reserve Fund under the Bond Indenture initially funded in an amount equal to $ representing the initial Reserve Requirement In the event that Bond proceeds are released from the Escrow Account of the Improvement Fund as described herein, additional amounts will be deposited in the Reserve Fund to maintain the balance therein at the Reserve Requirement 598187.12\22245.0079 -2- See "SECURITY FOR THE BONDS - Reserve Fund", The City has covenanted under certain circumstances to commence judicial foreclosure proceedings against parcels which are delinquent in the payment of assessment installments. See "SECURITY FOR THE BONDS--Foreclosure Proceedings," Notwithstanding the foregoing, delinquencies may result in a default in payment of debt service on the Bonds. See "SPECIAL RISK FACTORS - Delinquency Resulting in Ultimate or Temporary Loss on the Bonds," If there are insufficient funds in the Redemption Fund to make scheduled payments of principal of or interest on the Bonds, the City has the duty to direct the Fiscal Agent to transfer the amount of the delinquency from the Reserve Fund to the Redemption Fund, There is no assurance that funds will be available for this purpose and if, during the period of delinquency, there are insufficient funds on deposit in the Reserve Fund, a default may occur in payments to the owners of the Bonds, If there are additional delinquencies after the exhaustion of funds in the Reserve Fund, the City will have no direct or contingent liability to transfer into the Redemption Fund the amount of the delinquency out of any other available moneys of the City, See "SECURITY FOR THE BONDS" herein, NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO THE PAYMENT OF THE BONDS OR THE INTEREST THEREON, AND NO OWNER OF THE BONDS MAY COMPEL THE EXERCISE OF THE TAXING POWER BY THE CITY OR THE FORFEITURE OF ANY OF ITS PROPERTY, THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON THE BONDS ARE NOT A DEBT OF THE CITY NOR A LEGAL OR EQUITABLE PLEDGE, CHARGE, LIEN OR ENCUMBRANCE UPON ANY OF ITS PROPERTY OR UPON ANY OF ITS INCOME, RECEIPTS OR REVENUES OTHER THAN THE ASSESSMENTS, Description of the Bonds The Bonds will be issued and delivered as fully registered Bonds, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New Yark, New York ("DTC"). They will be available to actual purchasers of the Bonds (the "Beneficial Owners") in denominations of $5,000 or any integral multiple thereof only through brokers and dealers which are, or which act through, DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical delivery of the Bonds. In the event that the book-entry-only system described herein is no longer used with respect to the Bonds, the Bonds will be registered and transferred in accordance with the Bond Indenture, See "THE BONDS--Book-Entry System" herein and Appendix F - "INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY," Principal of, premium, if any, and interest on the Bonds is payable by the Fiscal Agent, acting as the paying agent for the Bonds, to DTc. Disbursement of such payments to DTC Participants is the responsibility of DTC, and disbursement of such payments to the Beneficial Owners is the responsibility of DTC Participants, In the event that the book-entry-only system is no longer used with respect to the Bonds, the Beneficial Owners will become the registered owners of the Bonds and will be paid principal and interest by the Fiscal Agent, all as described herein, The Bonds are subject to optional redemption in whole or in part on any March 2 or September 2 at the redemption prices as described herein and to mandatory redemption under certain circumstances. See "THE BONDS - Redemption:' For more complete descriptions of the Bonds and the basic documentation pursuant to which they are being sold and delivered, see "THE BONDS" herein, Tax Exemption In the opinion of Bond Counsel, based on an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the Bonds is 598187.12122245.0079 -3- excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 and is exempt from State of California personal income taxes, In the further opinion of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of federal individual or corporate alternate minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings in calculating federal corporate alternative minimum taxable income, Bond Counsel expresses no opinion regarding any other federal or state income tax consequences relating to the ownership or disposition of, or the accrual or receipt of interest on, the Bonds, See "LEGAL MATTERS-- Tax Exemption" herein. Professionals Involved in the Offering Kadie-Jensen, Johnson & Bodnar, San Diego, California is the City's financial advisor with respect to the Bonds. All proceedings in connection with the issuance and delivery of the Bonds are subject to the approval of Brown, Diven, Hessell & Brewer LLP, Solana Beach, California, Bond Counsel, and subject to certain other conditions, Certain legal matters will be passed on for the City by the City Attorney, and for the Underwriters by Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, California, Certain properties within the Assessment District have been appraised by Robert Backer & Associates, San Diego, California, The Meyers Group, Solana Beach, California, has prepared a market absorption study for the Assessment District. Berryman & Henigar, San Diego, California acted as the Assessment Engineer for the City. For information concerning respects in which certain of the above-mentioned professionals, advisors, counsel and agents may have a financial or other interest in the offering of the Bonds, See "PROFESSIONAL FEES" herein. Continuing Disclosnre The City and the Developer have agreed to provide, or cause to be provided, to each nationally recognized municipal securities information repository and any public or private repository or entity designated by the State of California (the "State") as a state repository for purposes of Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission (each, a "Repository") certain annual financial information and operating data and, in a timely manner, notice of certain material events, These covenants have been made in order to assist the Underwriters in complying with SEC Rule 15c2-12(b)(5). See Appendix D - "CITY'S CONTINUING DISCLOSURE CERTIFICATE" for a description of the specific nature of the annual report and notices of material events and Appendix H - "DEVELOPER'S CONTINUING DISCLOSURE UNDERTAKING." Bond Owners' Risks Certain events could affect the availability of funds sufficient to pay the principal of and interest on the Bonds when due, See the section of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of certain factors which should be considered, in addition to other matters set forth herein, in evaluating an investment in the Bonds. The Bonds are not rated by any nationally recognized rating agency, The purchase of the Bonds involves significant risks, and the Bonds are not appropriate investments for investors who are nol able to bear those risks. Other Information This Official Statement speaks only as of its date, and the information contained herein is subject to change, 598187.12\22245.0079 -4- Brief descriptions of the Bonds and the Bond Indenture are included in this Official Statement. Such descriptions and information do not purport to be comprehensive or definitive. All references herein to the Bond Indenture, the Bonds and the Constitution and laws of the State as well as the proceedings of the City are qualified in their entirety by reference to such documents, laws and proceedings, Capitalized terms not otherwise defined herein shall have the meanings set forth in the Bond Indenture. Copies of the documents referred to herein are available from the City Clerk. THE BONDS Authority for Issuauce In forming the Assessment District, the City Council of the City directed Berryman & Henigar, San Diego, California (the "Assessment Engineer") to prepare and file with the City Clerk a report (the "Engineer's Report") containing certain information with respect to the proposed assessments, On February 3, 1998, following a public meeting with respect to the Engineer's Report and the proposed assessments, the City Council adopted resolutions approving the Engineer's Report, confirming the assessments and forming the Assessment District. The Engineer's Report was subsequently amended on , 1998, A copy of the Engineer's Report, as amended, is on file and available for inspection at the office of the City Clerk. Geuera1 Descriptiou The Bonds will be issued under the Bond Indenture, will be dated the date of their initial delivery and will be issued only as fully registered Bonds, without coupons, in the denomination of $5,000 each or any integral multiple thereof. Principal of and premium, if any, on the Bonds is payable annually on September 2 of each year commencing September 2, 2000 at the office of the Fiscal Agent. Interest on the Bonds will be payable commencing on March 2, 2000, and semiannually thereafter on March 2 and September 2 of each year (each such date, an "Interest Payment Date"), Interest on the Bonds will be calculated on the basis of a 360-day year composed of twelve 30-day months, The Bonds mature in the amounts and on the dates and bear interest at the rates shown on the cover page of this Official Statement. Each Bond will bear interest ¡¡-om the Interest Payment Date next preceding the date on which it is authenticated, unless said Bond is authenticated as of an Interest Payment Date, in which case it shall bear interest ¡¡-om said Interest Payment Date, or unless said Bond is authenticated after the close of business on the fifteenth day of the month next preceding an Interest Payment Date (a "Record Date") but prior to the immediately succeeding Interest Payment Date, in which case it shall bear interest from that Interest Payment Date, or unless the date of authentication is prior to the close of business on the first Record Date, in which case interest shall be payable ¡¡-om the date of the Bonds; provided, however, that if at the time of authentication of any Bond, interest is in default, interest on that Bond shall be payable from the last day on which interest was paid in full or from the date of issuance of the Bonds if no interest has been paid or made available for payment. The Bonds will be registered in the name of Cede & Co" as nominee for DTC. Beneficial ownership interests in the Bonds may be purchased by individual owners under the DTC system, The principal of and interest on the Bonds will be paid by the Fiscal Agent directly to DTC as the registered owner thereof. Disbursement of such payments to the DTC Participants is the responsibility of DTC, and disbursements of such payments to the beneficial owners is the responsibility of DTC Participants and the Indirect Participants, as more fully described herein. Any beneficial owner of a Bond must maintain an account with a broker or dealer which is, or which acts through, a DTC Participant to receive payment of the principal of and interest on such Bond, Transfers of ownership will be made in the records of DTC for the beneficial owners of the Bonds. While Bonds are in the book-entry only system of DTC, DTC is the legal owner of all of the Bonds, 598187.12\22245.0079 -5- and there will be one Bond for each maturity in the total principal amount of such maturity, See "THE BONDs-Book-Entry System." Redemption or Purchase of Bonds Optional Redemption. Any Bond, or portion thereof in an integral multiple of $5,000, may be called for redemption and payment in advance of maturity on any Interest Payment Date, from any source of funds, at the redemption prices (expressed as a percentage of the principal amount to be redeemed) set forth below, together with accrued interest to the date of redemption: Redemption Date Redemption Price March 2, 2000 through September 2, 2009 103% March 2, 20 I 0 and September 2, 2010 102% March 2, 20 II and September 2, 2011 101% March 2, 2012 and thereafter 100% Funds for an optional redemption may come from any source, including, but not limited to, voluntary prepayments of assessments by property owners or the proceeds of refunding bonds, Pursuant to the Act, the City may issue refunding bonds for the purpose of redeeming all or part of the Bonds prior to their respective maturity dates, The issuance of such refunding bonds and the prepayment of all or part of any assessment or the accumulation of investment income in the Redemption Fund would result in the optional redemption of Bonds, Mandatory Sinking Fund Redemption. The Bonds maturing on September 2, 20_ are subject to mandatory sinking fund redemption, in part, by lot, on September 2 in each year commencing September 2, 20-, at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued and unpaid interest thereon to the date fixed for redemption, without premium, in the aggregate principal amounts and in the years shown on the following redemption schedule. Redemption Date Principal Redemption Date Principal (September 2) Amount (September 2) Amount Mandatory Redemptionfrom Escrow Account. The Bonds are subject to mandatory redemption prior to maturity, in whole or in part, on March 2 or September 2 in any year commencing March 2, 2002, from amounts transferred from the Escrow Account of the Improvement Fund, to the Prepayment Account of the Redemption Fund pursuant to the Indenture, upon mailed notice as provided in the Indenture, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest thereon to the date of redemption, together with a premium of 3%. See "SECURITY FOR THE BONDS - The Escrow Account." 598187.12\22245.0079 -6- Purchase of Bonds, In lieu of payment at maturity or redemption as described above, monies in the Redemption Fund (other than monies representing prepaid assessments) may be used and withdrawn by the Fiscal Agent for purchase of outstanding Bonds which mature (or with respect to which a sinking fund payment is due) on the next principal payment date, upon the filing with the Fiscal Agent prior to the selection of Bonds for redemption of a written request from the City requesting such purchase, at public or private sale as and when, and at such prices (including brokerage and other charges) as such request may provide, but in no event may Bonds be purchased at a price in excess of the principal amount thereof, the premium, if any, plus interest accrued to the date of maturity or redemption that would otherwise be payable. Selection of Bonds for Redemption, If less than aH of the outstanding Bonds or portions thereof are to be redeemed other than pursuant to a mandatory sinking fund redemption, the Fiscal Agent shaH select the Bonds to be redeemed in authorized denominations in such a way that the ratio of outstanding Bonds to issued Bonds shaH be approximately the same for each annual maturity insofar as possible. Notice of Redemption. When the Fiscal Agent shaH receive notice from the City of its election to redeem Bonds at least sixty (60) days prior to the applicable redemption date, or when Bonds are otherwise to be redeemed as described above, the Fiscal Agent shaH give notice, in the name and at the expense of the City, of the redemption of such Bonds, Such notice of redemption shaH (a) specify the numbers of the Bonds selected for redemption, except that where aH the Bonds are subject to redemption or aH the Bonds of a maturity date are subject to redemption, the numbers thereof need not be specified; (b) state the date fixed for redemption; (c) state the redemption price; (d) state the place or places where the Bonds are to be redeemed; (e) in the case of Bonds to be redeemed only in part, state the portion of the Bond which is to be redeemed; and (f) the CUSIP numbers of the Bonds to be redeemed. Such notice shaH further state that on the date fixed for redemption there shaH become due and payable on each Bond, or portion thereof caHed for redemption, the principal thereof, together with any premium, and interest accrued to the redemption date, and that from and after such date, interest thereon shaH cease to accrue and be payable, At least 30 days but no more than 45 days prior to the redemption date, the Fiscal Agent shaH mail by first-class mail, postage prepaid, a copy of such notice, to the respective owners of the Bonds to be redeemed at their addresses appearing on the bond register. Effect of Redemption Notice. If notice of redemption has been duly given as provided in the Bond Indenture and the amount necessary for the redemption has been made available for that purpose on the date fixed for such redemption, then from and after the redemption date, the Bonds or portions thereof so designated for redemption shaH be deemed to be no longer outstanding and such Bonds or portions thereof shall cease to bear further interest. From and after the date fixed for redemption, no owner of any of the Bonds or portion thereof so designated for redemption shaH be entitled to any of the benefits of the Bond Indenture, or to any other rights, except with respect to payment of the redemption price and interest accrued to the redemption date from the amounts so made available, Book-Entry System DTC will act as securities depository for the Bonds, and the Bonds will be registered in the name of Cede & Co, (DTC's nominee), One fully-registered Bond certificate will be issued for each maturity of the Bonds in the aggregate principal amount of such maturity and will be deposited with DTC So long as Cede & Co, is the registered owner of the Bonds, references herein to the Owners of the Bonds shall mean Cede & Co, and shaH not mean the Beneficial Owners, The City cannot and does not give any assurances that DTC participants or others will distribute payments with respect to the Bonds received by DTC or ils nominee as the registered Owner, or any redemption or other notices, to the Beneficial Owners, or that they will do so on a timely basis, or that DTC will act in the manner described in this Official Stalemenl. 598187.12\22245.0079 -7- See Appendix F for a further description of DTC and its book-entry system. The information presented therein is based solely on information provided by DTC Discontinuation of Book-Entry-Only System; Payments to Owners In the event that a book-entry system is no longer used with respect to the Bonds, the principal of the Bonds will be payable upon surrender thereof at the office of the Fiscal Agent Interest on the Bonds will be payable on each Interest Payment Date to the registered owner thereof as of the close of business on (he Record Date immediately preceding each Interest Payment Date, such interest to be paid by check of the Fiscal Agent, mailed by first-class mail to the registered owner at such owner's address as it appears on the bond register (or at such other address as is furnished to the Fiscal Agent in writing by the registered owner). The principal of and interest on the Bonds shaH be payable in lawful money of the United States of America, Investments Amounts held in any fund or account held pursuant to the Bond Indenture may be invested in any investment that is lawfuHy available for such amounts, subject to the conditions provided in the Bond Indenture. AH money on deposit in the Reserve Fund is to be invested by the Fiscal Agent in lawful investments of City funds maturing not later than five years from the date of purchase, provided that moneys in the Reserve Fund may be invested in a repurchase agreement or an investment agreement without such five year limitation so long as the agreement provides for withdrawals at par on any Interest Payment Date, Investment income on moneys in each Fund or Account will be retained therein, Monies in the Escrow Account of the Improvement Fund are required to be invested in a guaranteed investment contract with a provider whose long-term debt is rated not less than "AA" by Standard & Poor's Corporation and not less than "A a" by Moody's Investors Service, 1nc, ESTIMATED SOURCES AND USES OF FUNDS Upon the sale of the Bonds, the proceeds from such sale are to be applied as foHows: Sources of Funds: Principal Amount of Bonds $ Less: Original Issue Discount Total Sources of Funds $ Uses of Funds: Project Account of the Improvement Fund $ Escrow Account of the Improvement Fund Costs oflssuance Fund Reserve Fund Underwriter's Discount Total Uses of Funds $ Proceeds of the Bonds will be used to acquire certain public facilities as described in the Engineer's Report or completed components of such facilities pursuant to the Acquisition Agreement between the City and the Developer. See "THE ASSESSMENT DISTRICT." 598187.12\22245.0079 -8- SECURITY FOR THE BONDS The Bonds are not secured by Ihe general taxing power of the City or the State of California or any political subdivision of the State; and neither the City nor the State nor any political subdivision of the State has pledged its fùll faith and credit for the payment thereof Assessments The Bonds are secured by the unpaid assessments levied on the properties in the Assessment District, together with interest thereon; and such unpaid assessments together with interest thereon constitute a trust fund for the redemption and payment of the principal of and interest on the Bonds, Although the unpaid assessments constitute liens on the parcels assessed, they do not constitute a personal indebtedness of the respective owners of said parcels, There is no assurance that such owners will be financially able to pay the assessment installments or that they will pay such installments even though financially able to do so, The unpaid assessments are to be collected in annual installments, together with interest on the declining balances, on the tax roll of the County of San Diego (the "County"), The assessment installments are payable and become delinquent at the same time and in the same proportionate amounts and bear the same penalties and interest after delinquency as do said general ad valorem property taxes; and the properties upon which the assessments are levied are subject to the same provisions for sale and redemption as are properties for nonpayment of general ad valorem property taxes, These annual installments are to be paid into the Redemption Fund and used to pay the principal of and interest on the Bonds as the same become due. The amount billed against each property is generally based on the percentage which the unpaid assessment applicable thereto bears to the total of unpaid assessments in the Assessment District The failure of a property owner to pay an annual assessment installment will not result in an increase in assessment installments applicable to other properties within the Assessment District The lien of the assessment continues until the assessments are paid. The lien is subordinate to all fixed special assessment liens previously imposed upon property, but it has a priority over all private liens and over all fixed special assessment liens which may thereafter be created against such property. The lien is co-equal to and independent of the lien for general ad valorem property taxes and community facilities district special taxes, None of the properties within the Assessment District are subject to any prior assessments; however, all of such parcels lie within boundaries of Community Facilities District ("CFD") No.6 of the Chula Vista Elementary School District, Community Facilities District No, 6 of the Sweetwater Union High School District and Community Facilities District Nos, 97-1 and 97-2 of the City. In addition, the Developer and the City expect to include substantially all of the property in the District in a community facilities district to be formed by the City to finance additional public improvements, See "THE ASSESSMENT DISTRICT-Estimated Direct and Overlapping Indebtedness," and "SPECIAL RISK FACTORS--Direct and Overlapping Indebtedness:' The Bonds are secured by the moneys in the Redemption Fund and the Reserve Fund. Principal of and interest on the Bonds are payable exclusively out of the Redemption Fund, Reserve Fnnd The Bond Indenture establishes the Reserve Fund and provides that it shall be held by the Fiscal Agent The Reserve Fund shall equal the lesser of (i) 10% of the proceeds of the Bonds not on deposit in the Escrow Account, or (ii) the maximum annual debt service of the Bonds not on deposit in the Escrow Account (the "Reserve Requirement"), In the event that amounts are released from the Escrow Account of the Improvement Fund, a portion of the amount released will be deposited to the Reserve Fund to increase the balance therein to the Reserve Requirement 598187.12\22245.0079 -9- Amounts in the Reserve Fund are to be transferred to the Redemption Fund if, as a result of delinquencies in the payment of assessments, there are insufficient moneys in the Redemption Fund to pay principal of and interest on the Bonds when due, Amounts so transferred shall be repaid to the Reserve Fund from delinquent assessments paid by an owner or from the proceeds received at a foreclosure sale of the delinquent property, On or before July 15 of each year, the Fiscal Agent is to review the amount of money on deposit in the Reserve Fund, If the Fiscal Agent detennines that the amount on deposit in the Reserve Fund exceeds the Reserve Requirement, such excess is to be transferred to the Redemption Fund (except to the extent that any portion thereof is required to be rebated to the federal government). Whenever moneys in the Reserve Fund are sufficient to retire all of the Bonds outstanding, such moneys shall be transferred to the Redemption Fund and collection of the remaining unpaid assessments shall cease, In the event an assessment is paid in cash in advance of its final due date, the Fiscal Agent is to transfer to the Redemption Fund from the Reserve Fund an amount equal to the ratio of the amount then contained in the Reserve Fund to the total amount originally assessed in the Assessment District multiplied by the reduction in said assessment; and the amount of the Reserve Requirement shall be reduced accordingly. The Escrow Account On the Delivery Date, $ of Bond proceeds will be deposited in the Escrow Account of the Improvement Fund pursuant to the Bond Indenture, Such funds shall be held in the Escrow Account until transferred pursuant to the provisions of the Bond Indenture to (a) under the circumstances described below, the Project Account to pay Project Costs and to the Reserve Fund to fund a portion of the Reserve Requirement, or (b) the Prepayment Account of the Redemption Fund and applied to the mandatory redemption of Bonds, See "THE BONDS - Redemption or Purchase of Bonds - Mandatory Redemption from Escrow Account" above, Release Conditions On or before March 2, 2002 (or such later date up to March 2, 2004 as is approved under the Indenture), the amount on deposit in the Escrow Fund shall be transferred to the Project Account and the Reserve Fund upon the receipt by the Fiscal Agent of a written certification from the Director certifYing that all of the Stage 3A and 3B Obligations (defined below) have been met and that the City Council of the City is not prevented by the provisions of that certain Agreement for Financing and Construction of Olympic Parkway and Related Roadway Improvements (the "Roadway Improvements Agreement") or the Public Facilities Finance Plan from approving final maps for up to 1,352 equivalent dwelling units for the Developer's property within the Otay Ranch, "Stage 3A and 3B Obligations" shall mean those improvements and other requirements which are a part of Stage 3A and 3B as set forth in Exhibit J to the Olympic Parkway Agreement. "PFFP" shall have the meaning given such tenn in the Olympic Parkway Agreement, as amended by the PFFP Amendment (as such tenn is defined in the Olympic Parkway Agreement). See "THE OT A Y RANCH PROJECT - Certain Limitations on Development Phasing" and Table 8 therein for a discussion of the conditions required to be satisfied to have units released under the agreement. Credit Against Assessments In the event that the funds on deposit in the Escrow Account are transferred to the Prepayment Account of the Redemption Fund pursuant to the provisions of the Indenture above and used to redeem Bonds prior to the maturity thereof, the City shall credit and apply such redemption pro rata to the prepayment of the unpaid assessment liens on the properties within the Assessment District which are subject to the prohibition on the recordation of final maps until the Stage 3A and 3B Obligations are satisfied. 598187.12\22245.0079 -10- Foreclosure Proceedings Covenant to Commence Superior Court Foreclosure. The Act provides that as a cumulative remedy, upon default in the payment of any assessment installment, an action may be brought in the superior court to foreclose the lien of the assessment In such an action, the real property subject to the assessment lien may be sold at a judicial foreclosure sale, Such judicial foreclosure proceedings are not mandatory. In the Bond Indenture, the City has covenanted that not later than July I of each year it will determine the amount of assessment installments collected in the prior Fiscal Year; and with respect to individual delinquencies, if the City determines that any single parcel is delinquent in the payment of assessment installments in the aggregate of $2,500 or more, then the City will send or cause to be sent a notice of delinquency (and a demand for immediate payment) to the property owner within 45 days of such determination, and (if the delinquency remains uncured) the City will cause judicial foreclosure proceedings to be filed in the Superior Court not later than October I of such year, and will prosecute diligently such foreclosure proceedings to judgment and judicial foreclosure sale. Upon the redemption or sale of the real property responsible for any delinquent assessment installment, the City will apply the net proceeds: (a) to deposit to the Reserve Fund the amount of any delinquency advanced from the Reserve Fund to the Redemption Fund for payment of interest on or principal of the Bonds, and (b) as to any balance, as set forth in the judgment of foreclosure or as required by law, Judicial Foreclosure Proceedings. The Act provides that the court in a foreclosure proceeding has the power to order property securing delinquent assessment installments to be sold for an amount not less than all assessment installments, interest, penalties, costs, fees, and other charges that are delinquent at the time the foreclosure action is ordered, and certain other fees and amounts as provided therein (the "Minimum Price"). The court may also include subsequent delinquent assessment installments and all other delinquent amounts. Under current law, a property owner whose property is being foreclosed upon has at least 140 days from the date of service of the notice of levy in which to redeem the property to be sold, except where the property being sold is other than a residential dwelling for not more than four families, in which case, the sale may occur as soon as 30 days after the service of the notice of levy. If the judgment debtor fails to redeem, and the property is sold, the judgment debtor's only remedy is an action to set aside the sale, which must be brought within 90 days of the date of sale, If, as a result of such an action, a foreclosure sale is set aside, the judgment is revived, the judgment creditor is entitled to interest on the revived judgment, and any liens extinguished by the sale are revived as ifthe sale had not been made, The City may, at its discretion, but is not required to, become the purchaser of any property sold in a foreclosure proceeding under the Act The City may become the purchaser either by paying cash or by giving a written receipt to the official conducting the sale credit bidding up to the amount required to satisfy the judgment If the City becomes the purchaser, it has up to 24 months to pay into the Redemption Fund an amount necessary to satisfy the judgment, less any advances by the City to cover delinquent assessment installments plus simple interest on such net amount, at the interest rates borne by the Bonds, from the dates of delinquency, Unless such property is subsequently resold, the City must transfer to the Redemption Fund any future assessment installments pending redemption. The City may thereupon be reimbursed for any amount advanced trom the City to the Redemption Fund to cover such future assessment installments with respect to the property so sold trom the proceeds of such sale. If the property is sold to a purchaser other than the City, the City shall deposit the proceeds from the sale of the property into the Redemption Fund. From such amount, the City shall reimburse the Reserve Fund for any funds advanced from the Reserve Fund to the Redemption Fund to cover delinquent assessment installments with respect to the property which is sold. After reimbursement of the Reserve Fund, the City may be reimbursed for advances it made to the Redemption Fund to cover the delinquent assessment 598187.12\22245.0079 -11- installments and interest Any funds in excess of the amount necessary to reimburse the City may be applied by the City to pay interest and penalties, costs, fees and other charges, to the extent they were included in the sales proceeds. If the property to be sold fails to sell for the amount of the judgment (the "Minimum Price"), the City may petition the court to modifY the judgment so that the property may be sold at a lesser price or without a Minimum Price, Notice of the hearing on such petition must be given to all Bond owners. In certain circumstances, the court may modifY the judgment after the hearing to permit the sale of the property at a price lower than the Minimum Price if the court makes certain determinations, including determinations that the sale at less than the Minimum Price will not result in an ultimate loss to Bond owners or that Bond owners of at least seventy-five percent (75%) of the principal amount of Bonds outstanding have consented to the petition and certain other circumstances described in the statute exist. Neither the property owner nor any holder of a security interest in the property nor any defendant in the foreclosure action may purchase the property at the foreclosure sale for less than the Minimum Price, There may be a default in payments to Bond owners pending prosecution of the foreclosure proceedings and receipt by the City of the proceeds of the foreclosure sale; it is also possible that no bid would be received for the purchase of a property at the foreclosure sale. See the section herein entitled "SPECIAL RISK F ACTORS---Bankruptcy and Foreclosure Delays," Property Values The extent to which the unpaid assessments provide security for the Bonds is, at least in part, a function of the value of the parcels that are subject to the unpaid assessments. The aggregate assessed value of the parcels within the Assessment District, as shown on the assessment roll for fiscal year 1998-1999, is approximately $18,341,000, See Appendix C - "ASSESSMENT LIENS AND VALUES," However, because of the method by which assessed values are computed under California law, assessed values do not necessarily reflect current market values, The Appraisal was conducted to obtain estimates of the market value of the developable property in the Assessment District In the opinion of the Appraiser, on the basis of the assumptions and limiting conditions contained in the Appraisal, the market value of the Appraised Properties as of March 1, 1999 was $108,775,000, As of March 1, 1999, the Developer had sold land upon which 1,184 single family lots are to be located to five different homebuilders including Centex Homes, Standard Pacific Homes, UDC (now Shea) Homes, Presley Homes and Trimark Homes and two multifamily parcels to Prowswood Development In addition, South Bay Project, LLC, a member of the Developer, had retained a multi-family parcel for future development In all, 1,184 single family lots and land for 372 multifamily units have been sold to the six builders noted above. The Developer owns the remainder of the property within the Assessment District which remains subject to the unpaid assessments, The Appraised Properties in the Assessment District owned by the Developer were valued by the Appraiser on a discounted cash flow basis as described below. The Appraiser's discounted cash flow analysis is summarized in an attachment to Appendix E - APPRAISAL REPORT, The Appraiser's opinion of the value of the Appraised Properties is based on the existing land use plans including the approved General Plan and Specific Plan governing development in the District Among other factors, the Appraiser's opinion of value is based on a projection of the capital and other expenditures required to develop and market the Appraised Properties and a projection of the revenues which may be received from selling such property under the assumption that it will be developed and marketed in accordance with the presently approved land use plans. 598187.12\22245.0079 -12- The Appraiser incorporated certain cost estimates provided by the Developer to complete each portion of the property within the Assessment District to the "finished lot" or "blue top" condition. The Appraiser assumed that these costs are accurate, In arriving at its estimate of value, the Appraiser also assumed that the public improvements to be financed with the proceeds of the Bonds are in place, The Appraised Properties are valued as a fee simple title, free and clear of all liens and encumbrances except easements, and rights of way of record, but "subject to" the liens imposed by the Assessment District as well as four overlapping community facilities districts, Community Facilities Districts 97-1 and 97-2 of the City of Chula Vista (collectively, the "City Maintenance CFD") were formed to maintain open space and preserved lands within the Otay Ranch and the Chula Vista Elementary School District CFD No. 6 and Sweetwater High School District CFD No.6 (collectively, the "School District CFDs") were formed to finance school facilities needed within the Otay Ranch area, The Appraisal also considers the impact of a proposed community facilities district ("CFD No, 99-1") to be formed by the City over substantially all of the land within the Assessment District for the purpose of financing a portion of the cost of Olympic Parkway, a major regional roadway, and concludes that the value of the Appraised Properties owned by the Developer would increase as a result of the formation ofCFD No. 99-1, which will shift a portion of the cost of Olympic Parkway to property outside of the Assessment District The Appraised Properties also are assumed to be under responsible ownership and competent management The Appraiser has received an opinion letter from Mr. Carl Kadie of Kadie-Jensen, Johnson and Bodnar (financial advisors to the City and the School District CFDs), wherein Mr. Kadie advises that the School District CFDs should not be considered in the undeveloped land discounted cash flow as the school districts will time the issuance of bonds of the School District CFDs to correspond with actual demand created by developed properties, and therefore it is not reasonably probable that a tax would be levied against undeveloped land, The obligations funded by the City Maintenance CFD will be required regardless of the pace of land development The undeveloped land tax potentially assessable by the City Maintenance CFD has been considered in the discounted cash flow described in the Appraisal. The Appraiser has reviewed geotechnical reports by Geotechnics Incorporated dated July I, 1997 and December 31, 1997, These reports concluded that no soil or geologic conditions exist which would preclude development of the site in accordance with the existing plan of development providing that certain recommendations for grading, soils compaction and foundation construction were followed, The Appraiser assumed no responsibility for toxic waste, soil conditions, or structural hazards not disclosed to the Appraiser nor apparent to a reasonable visual inspection of the surfaces of the premises. The existence of hazardous material, which mayor may not be present on the property, was not observed by the Appraiser. The total amount of the assessments confirmed in connection with the Assessment District proceedings is $13,740,452,51, and the market value of the Appraised Properties is $108,775,000, This results in an overall appraised value-to-lien ratio of7,92 to L In addition to the unpaid assessments, the parcels in the District are subject to the special tax liens of the School District CFDs and the City Maintenance CFDs, The foregoing value-to-lien ratio does not reflect the liens associated with the School District CFDs, the City Maintenance CFDs or CFD No, 99-1, which is tentatively projected to be formed and issue debt in the fall of 1999, Ifformed as currently proposed, CFD No. 99-1 could issue up to approximately $27 million of bonded indebtedness allocable to the Assessment District, which could result in appraised value-to-lien ratios which are lower than those set forth in this Official Statement See "THE ASSESSMENT DISTRICT - Property Ownership" and ". Estimated Direct and Overlapping Indebtedness." The ratio of the assessed value or appraised value of a parcel 10 its assessment varies considerably throughout the Assessment District, and some of the ratios are lower than the average. For example, the 598187.12\22245.0079 -13· Appraised Value of the property owned by the Developer is currently approximately 4.48 times the unpaid assessment liens applicable to such property, as compared to the Districtwide average of 7,92 times the unpaid assessment liens. See "THE ASSESSMENT DISTRICT - Property Ownership" and Appendix C - "ASSESSMENT LIENS AND VALUES:' Set forth below under the caption "THE ASSESSMENT DISTRICT - Property Ownership" are tables which summarize the estimated appraised value-to-lien ratios and the estimated assessed value-to-lien ratios for parcels within the District. For purposes of providing annual continuing disclosure, the City will update these tables only with the assessed value-to-lien ratios, DEBT SERVICE SCHEDULE The table below sets forth the principal and the interest payments due on the Bonds, Year Ending September 2 Principal Interest Total Debt Service 1999 $ $ $ 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total $ $ $ 598187.12\22245.0079 -14- THE ASSESSMENT DISTRICT General Description The Assessment District is a part of the 23,000-acre area of the City known as the "Otay Mesa," which covers approximately 36 square miles, See "THE OTA Y RANCH PROJECT," The Assessment District is located in Village One of the Otay Ranch project. Village One, most of which is included in the Assessment District, is in the westernmost portion of Otay Ranch and is located about 14 miles southeast of the City of San Diego central business district and about 3 y, miles east of the downtown area of the City, The location is about 5 miles inland from the Pacific Ocean. Current freeway access is via Telegraph Canyon Road to Interstate 805 which is about 2 miles west. As demand requires, two other major roads are proposed to improve access to Otay Ranch, State Route 125 is currently planned to be a toll road connecting SR 94 to Interstate 905. 1-905 is planned to be the major commercial route to Mexico and funding for this important link has been included in the 1998 Federal "highway bill." Olympic Parkway (formerly East Orange Avenue) forms the southerly boundary of Village One, Ultimately, this road is proposed to connect I-80S to the west with SR 125 and the Olympic Training Center to the east. Once Assessment District residents access the regional freeway system, there is relatively good access to all areas of the County, Plaza Bonita is the nearest subregional mall and is located about 2 miles north of the Telegraph Canyon Road interchange (i.e. 4 miles from the subject property) at the Bonita Road interchange to the north, The major employment centers of the San Diego CBD, Mission Valley, Kearny Mesa and the Harbor are easily accessible, In addition, there is increasing employment in the Otay Mesa area and Mexico which both have excellent access from the Assessment District. The Assessment District includes approximately 533.7 acres, Approximately 21.7 acres within the Assessment District boundaries will consist of parks and 117,1 acres will be comprised of natural open space, Roads and circulation occupy approximately 59.4 acres. The balance of the area is designated for single or multi-family residential development, commercial development, or "Community Purpose Facilities." The shape of the property is irregular but roughly rectangular. The Assessment District has relatively gentle topography. It consists of a large rolling mesa bounded on the north and south by two canyons, Land use on the Assessment District is governed by a number of jurisdictional approvals including, without limitation, the Otay Ranch General Development Plan, Sectional Planning Area One (SPA One) and the Planned Community District Regulations for SPA One, the City's Public Facilities Finance Plan, the Conditions of Approval for Tentative Map 96-04, and the City's Growth Management Ordinance, as well as subsequent substantial conformance approvals, See "Permitted Land Use" below. It is anticipated that the direct and overlapping indebtedness will result in a total tax burden close to or at the 2% maximum. According to City policy and that certain Second Amended Acquisition and Financing Agreement by and between the Developer and the City, the additional tax burden created by the Assessment District and any other overlapping financing district may not create a total burden exceeding 2% of assessed valuation of developed residential property. According to the Appraisal, most of the newer communities in the area have infrastructure financed by similar mechanisms so the tax burden within the Assessment District is intended to be competitive with other projects in the area, 598187.12\22245.0079 -15- Nearby Land Uses Most of the development in the area surrounding the Assessment District has occurred in the past 15 years and has primarily been in master-planned communities, Immediately to the west and south of the subject property is vacant land which is also a part of Otay Ranch. The Eastlake master planned community is located further to the east and the Rancho Del Rey master-planned community is located to the north. The Sunbow master-planned community is located west of the subject property and south of Telegraph Canyon Road. Each of these master-planned communities have neighborhood commercial elements as well as some business center areas, Southwest College, a community college, is located north of the Assessment District The Acquisition Agreement The Assessment District was fonned to provide a mechanism to finance certain public improvements necessary to develop Village One of the Otay Ranch. The Assessment District will finance the construction of the major roadways that will provide access to the community, including Paseo Ranchero (4 lanes) south off of Telegraph Canyon Road and East Palomar Street (4 lanes) which traverses Village One in an east/west alignment There is an additional "loop street," Monarche Drive (2 lanes), financed by the Assessment District This street separates the major village park from other land uses. The proposed school site also has considerable tTontage on Monarche Drive, Underground utilities and stonn drains installed within these streets are financed by the Assessment District In addition, certain landscape improvements will be financed by the Assessment District The City and Otay Project LLC have entered into an agreement entitled Second Amended AcquisitionlFinancing Agreement dated as of 1998 (the "Acquisition Agreement") to establish the tenns and conditions pursuant to which the improvements described above to financed through the Assessment District (collectively, the "Improvements") will be constructed and financed, Pursuant to the Acquisition Agreement, Otay Project LLC is responsible for the preparation of the plans and specifications for all of the Improvements. Upon approval of such plans and specifications by the City or the other public agency which will own the Improvements, Otay Project LLC is responsible for the construction of the Improvements, All costs incurred for the preparation of the plans and specifications and the construction of the Improvements, including all incidental expenses, shall be initially borne by Otay Project LLC. The City is obligated to acquire the completed Improvements from Otay Project LLC pursuant to the provisions of the Acquisition Agreement from the proceeds of the Bonds, A list of the Improvements which will be funded, in part, from the Bond proceeds and their estimated cost is set forth in the Table I below: I " 598187.12\22245.0079 -16- TABLE 1 CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 IMPROVEMENTS TO BE FINANCED Improvement Estimated Cost Paseo Ranchero $ 3,770,000 East Palomar Road 5,508,000 Monarche Drive 574,000 Project Management and Engineering 2.4 77,000( 1) $12,329,000 (I) Approximately $578,138 of this total will be funded directly by the Developer, with the balance to be funded with Bond proceeds, Property Ownership Table 2 below lists the largest property owners in the Assessment District by the amount of unpaid assessments attributable to each owner of property. 59S 187 .12\22245.0079 -17- .., ~ ~ :ë ~ a c ~ " ~ " ~ ~ "0 ~ 6: c .~ ~:o ~ -5-~ Q ... 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C _ '1) '- ._ '" 0 .~ E-< t.= o~ 0 -5 .- !:l. ~ ~ B OC:O~ "'0 e è- VI p.. -£ E-<8~Qi~~o ro ~ ~ § ~ :::f ~ a ~ ~ U .S 8 ¡:::Q 0:: ~ ~ ~ .~ ..2.D Cj .5 ~ ~u>' ~ ] ~ o....¡g ~ ~ 0 ~ ~ CI'J....:J 0 __ t!- CI'J * ~ Permitted Land Use Table 4 below describes the currently approved land uses within the Assessment District TABLE 4 LAND USE SUMMARY ASSESSMENT DISTRICT 97-2 Dwelling Use Acres Units Single-family Residential 294.8 1,567 Multi-Family Residential 41.1 1,170 Commercial 8.1 0 Parks 21.8 0 Community Purpose Facilities 6.0 0 School lOA 0 Open Space and Roads 15L5 --º Total 533,7 2,737 For a discussion of the planned development within the Assessment District and the conditions to development, see "THE OT A Y RANCH PROJECT" herein, Tax Delinquencies There are no parcels in the Assessment District that are currently delinquent in the payment of ad valorem tax installments, However, historical delinquencies of the prior owner, an affiliate of which is a member of Otay Project LLC, occurred in the payment of ad valorem taxes with respect to the property now located within the boundaries of the Assessment District In the Village One area, $472,096 of such delinquent taxes were brought current in August of 1997; $446,912 of delinquencies with respect to the territory located in Village 13 are being paid by the Developer on an installment plan; and the balance of the ütay Ranch property was responsible for $1,339,333 delinquent ad valorem taxes which were brought current in August of 1997. Otay Ranch Development LLC, one of the entities constituting the Developer, is owned by the family interests of James and Alfred Baldwin, Entities that are or were controlled by James and Alfred Baldwin and their families, including Baldwin Builders, Inc., Baldwin Building Contractors, Ltd., Tiger Two Development, Cannel Valley Partners, Calabasas, LLC and Marlin Development (formerly Village Development, formerly Village Properties) have been responsible for significant delinquencies in the payment of Mello-Roos community facilities district special taxes and ad valorem taxes with respect to property in various developments in California, as discussed below. Marlin Development ("Marlin") is a California general partnership, which was formed in 1974 under the name "Village Properties:' Village Properties changed its name in June, 1995 to "Village Development" and subsequently changed its name again in November, 1996 to "Marlin Development" The general partners of Marlin are James P. Baldwin and Alfred E. Baldwin, Marlin has been in the development business for over 24 years. Marlin Development was delinquent in the payment ofMello-Roos special taxes on property located 598187.12\22245.0079 21 in San Marcos and Portola Hills, California; however, all delinquent special taxes with respect to those properties have now been paid, Calabasas, LLC currently owns property in Calabasas, California and is delinquent in the payment of Mello-Roos special taxes and ad valorem taxes on this property, On November 18, 1998, the County of Los Angeles was granted a Judgment of Foreclosure against Calabasas, LLC for the delinquent taxes, and has moved to enforce the judgment by filing Notices of Levy against the property. Calabasas, LLC has filed an appeal of this judgment. In July 1995, Baldwin Builders, Inc, a corporation owned by James and Alfred Baldwin, and Baldwin Building Contractors, Ltd., a partnership owned 97% by Baldwin Builders, Inc. (the "Baldwin Company") filed for reorganization under Chapter II of the Bankruptcy Code, In February 1996, in order to obtain new financing for the Baldwin Company, James and Alfred Baldwin personally contributed land they owned with an estimated value of over $30 million and agreed to transfer control of the Baldwin Company to a trustee selected by the new lenders, Pursuant to an agreement approved by the bankruptcy court, James and Alfred Baldwin and their affiliates exchanged mutual full releases of all claims with the Baldwin Company. The Baldwin Company has since had a plan of reorganization approved and has emerged from bankruptcy under the name "New Millennium Homes." James and Alfred Baldwin are not involved in the management of New Millennium Homes and have a de minimis ownership interest in that company. James and Alfred Baldwin and certain of their affiliated entities, not including any entities involved with the Developer (collectively, the "Baldwins"), are plaintiffs and defendants in various lawsuits with New Millennium relating to alleged purchase options and related matters for two parcels ofland owned by the Baldwins, On April 28, 1999, a judge in one of these lawsuits ruled against the Baldwins and awarded approximately $5,000,000 to New Millennium, The Baldwins intend to appeal the ruling, Negotiations to settle all litigation between the parties is ongoing. New Millennium Homes was delinquent in the payment of special and ad valorem taxes on all of its properties, including special taxes on properties located in Calabasas (Los Angeles, CFD No, 4), Anaheim Hills (City of Anaheim, CFD No, 88-1, and Orange Unified School District CFD No, 89-2), and Portola Hills (Santa Ana Mountains Water District CFD No.2 and County of Orange CFD No. 87-2), As part of its plan of reorganization, New Millennium Homes has either paid or entered into payment plans with respect to all of its delinquent special and ad valorem taxes, Estimated Direct and Overlapping Indebtedness Within the Assessment District's boundaries are numerous overlapping local agencies providing public services. Some of these local agencies have outstanding bonds which are secured by taxes and assessments on the parcels within the Assessment District. The approximate amount of the direct and overlapping debt secured by such taxes and assessment on the parcels within the District for fiscal year 1998-99 is shown in Table 5 below (the "Debt Report"). Self-supporting revenue bonds, tax allocation bonds and all capital lease obligations (whether or not bonded) are excluded from the Debt Report, The Debt Report has been derived from data assembled and reported to the City by California Municipal Statistics, Inc. The Debt Report is included for general information purposes only; and the City makes no representations as to its completeness or accuracy. 598187.12\22245.0079 22 TABLE 5 CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT STATEMENT 1998-99 Assessed Valuation: $18,341,000 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 6/1/99 Metropolitan Water District 0,002% $11,561 San Diego County Water Authority 0,013 981 Chula Vista City School District 0224 56,000 City of Chula Vista Assessment District No, 97-2 JOO, ---= (I) TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $68,542 OVERLAPPING GENERAL FUND OBLIGATION DEBT: San Diego County General Fund Obligations 0.012% $ 62,914 San Diego County Pension Obligations 0.012 44,786 San Diego County Superintendent of Schools Obligations 0.012 272 Otay Municipal Water District Certificates of Participation 0.262 74,094 Sweetwater Union High School District Certificates of Participation 0.155 16,085 Chula Vista City School District Certificates of Participation 0.224 55,384 City of Chula Vista Certificates of Participation 0275 39,573 City of Chula Vista Pension Obligations 0275 42,794 TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT $335,902 Less: Otay Municipal Water District Certificates of Participation 74,094 TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT $261,808 GROSS COMBINED TOTAL DEBT $404,444 (2) NET COMBINED TOTAL DEBT $330,350 (I) Excludes 1915 Act bonds to be sold, (2) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non- bonded capital lease obligations, Ratios to 1998-99 Assessed Valuation: Direct Debt.,,,,.,,.,.,,.,,,,.,,.,,.,,.,,.,,.,,..,..,,.,,.,,.,,..,..,,.,,..,,.,,..,..,,.,,..,..,,.,,. - % Total Direct and Overlapping Tax and Assessment Debt """,,,,,.,,,,,,. 037% Gross Combined Total Debt"__,__"",,,,,,,m,,,,,,,,,,,,,,,,,__,,,,,,,,,,,,,,,,,,,.,,,, 221 % Net Combined Total Debt 'mm"",.,__'m"""'m"""''''""",,,__,,,,,,,,,,,,,,,, 1,80% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/98: $0 Source: California Municipal Statistics, Inc. 598187.12\22245.0079 23 ._.____ '_H___~___._ Table 5 above does not reflect the overlapping debt that may be incurred by the School CFDs or proposed CFD No, 99-1, or the special taxes that may be levied by the City CFDs, The City CFDs aud the School CFDs are summarized in Table 6 below: TABLE 6 SUMMARY OF OVERLAPPING CITY CFDS AND SCHOOL CFDS Undeveloped Final Developed Non- Land Special Map Residential Residential Authorized Outsta District Purpose Tax Per Acre Property Special Tax Special Debt De Special Tax Per Tax Per Acre Acre City CFD No, Maintenance $2,870 $0,1977 psf $2,538 $0 97-1(1) City CFO No. Maintenance 132 209 0,0127 209 97-2(1 ) Chula Vista Elementary 1,301 0.2306 Elementary CFO No. Schools 6 Sweetwater High High Schools 1,602 0.2841 School District CFD No, 6 Proposed CFD No, 0.26 99-1 I) On July I of each year, the maximum special tax rates shall be increased or decreased by a factor which shall be the lesser of the annual percentage change in the January to January San Diego , Metropolitan Area All Urban Consumer Price Index (All Items) or the annual percentage change in the estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published every January. THE OTAY RANCH PROJECT The information provided in this section "OTAY RANCH PROJECT" has heen included hecause it may be considered relevant to an informed evaluation and analysis of the Bonds and the Assessment District. No assurance can he given that the proposed development will occur as descrihed below. As the proposed land development progresses and parcels are sold, it is expected that the ownership of the land within the Assessment District will become more diversified. Although planning for the development of Otay Ranch is at an advanced stage, actual construction of improvements are as described below under the caption "Current Status of Development." No assurance can be given that development of the land within the Assessment District will occur, or that it will occur in a timely manner or in the configuration or intensity described herein, or that any landowner described herein or the Developer will obtain or retain ownership of any of the land within the District. The Bonds and Assessments are not personal obligations of any landowners or the Developer. As a result, other than as provided herein, no financial statements or information is, or will he, provided about the Developer. 598187.12\22245.0079 24 The Bonds are secured solely by the Assessments and other amounts pledged under the Indenture. See "SECURITY FOR THE BONDS" and "SPECIAL RISK FACTORS." Information contained in this section under the captions "The Developer," "Proposed Development and Developer's Pro-Forma" and "Construction Status" have been provided by the Developer, and the City makes no representations as to the accuracy of such information. General Description of The Otay Ranch Project The District lies within the 23,000 acre Otay Ranch planning area. The Otay Ranch comprises a majority of the 37,600 acre Eastern Territories Planning Area of the City, The Eastern Territories Planning Area is bounded by Interstate 805 on the west, San Miguel Mountain and State Route 54 on the north, the Otay Reservoirs and the Jamul foothills on the east, and the Otay River Val1ey on the south. The Otay Ranch is currently planned to include eleven urban villages, a resort village and golf course community, two industrial areas, two rural estate planning areas and approximately 13,000 acres of open space, The Developer The Developer consists of two entities, Otay Project, LLC and Otay Project LP, Otay Project, LLC was formed August 15, 1997 by South Bay Project, LLC and Otay Ranch Development, LLC, Otay Project LP. was formed on January 20, 1999 by Otay Project, LLC, South Bay Project, LLC, its limited partners, and Otay Ranch Development, LLC. The organizational structure of the forming members of the Developer is depicted in the chart below: South Bay David Green Hal Beral James Baldwin Alfred Baldwin Investors Family Family I I I I I South Bay Project, LLC Otay Ranch Development, LLC I I Otay Project, LLC Otay Project LP, 598187.12\22245.0079 25 The primary business of the Developer is to own, develop and sell the approximately 5,000 acres that it acquired in Otay Ranch. The Otay Ranch property was purchased by South Bay Project LLC on August 26, 1997 and immediately contributed to the Developer at its net fair market value, South Bay Project, LLC has delegated day-to-day management decisions of the Developer to Otay Ranch Development LLC, with major management decisions remaining subject to the approval of South Bay Project, LLC, Otay Ranch Development, LLC is under the control of James and Alfred Baldwin, James and Alfred Baldwin and their affiliated companies are land developers and homebuilders in Southern California primarily engaged in the development of master-planned communities in well-located coastal areas in Orange, San Diego, Ventura and Los Angeles Counties. Their companies have operated in the Southern California market for 40 years and have built over 15,000 homes and developed over 20,000 lots in the region. Certain entities owned and controlled by James and Alfred Baldwin have previously filed for bankruptcy and have been and in certain cases remain delinquent in the payment of property taxes and assessments and are subject to outstanding judgments in connection with these delinquencies, See "THE ASSESSMENT DISTRICT - Tax Delinquencies:' South Bay Project LLC was formed by several individuals and entities for the sole purpose of acquiring the Property and participating in its development. South Bay Project, LLC is managed by Golden State Developers, based in Irvine, California. The management of Golden State Developers has been involved in all phases of real estate development since 1981. The scope of activity of this management team has included the securing of entitlements for undeveloped land, construction and sale of single family and multifamily residential units, the management of multifamily residential units, the development of industrial parks and a resort community, Residential developments of the Golden State management team include developments in many California communities, including Thousand Oaks, San Ramon, Danville, Vallejo, San Clemente, Dixon and Vacaville, The Assessment District is 533 of the 619 gross acres in Village One. Current development plans with tentative map approval for property within the Assessment District include 2,737 residential units, 8.1 acres of commercial development, 6,0 acres of community purpose facilities, 21.8 acres of parks, a lOA-acre school site and 151,5 acres of open space and roads. The Developer has sold or transferred title to 25604 acres of land within the Assessment District approved for the development of 1,556 housing units. The Developer anticipates transferring ownership of the land for the balance of the residential units, the commercial development and community purpose facilities, Proposed Development and Developer's Pro-forma The Developer presently owns approximately 93 acres of developable property in the Assessment District. In addition, one parcel (Assessment Parcel 6) of 6,6 acres is presently owned by South Bay Project LLC, a member of the Developer, and is planned for 160 multifamily units. In addition to its remaining property in the Assessment District, the Developer owns an additional approximately 4,500 acres in the Otay Ranch, Certain of this property is being planned and improved as part of the Developer's longer range strategy to develop the Otay Ranch, Other Otay Ranch parcels with a near term development horizon are 287 acres in Village One West and 265 acres in Village Five. Village One West is located immediately west of the Assessment District and Village Five is approximately one-half mile to the east. The Developer is planning and developing Village One, Village One West and Village Five as part of a common business plan, and plans to use certain land sale revenues ¡¡-om Village One West and Village Five to finance a portion of the development costs in the Assessment District. Property outside of the District, including Village One West and Village Five, whether owned by the Developer or another party, does not secure the assessments or the Bonds. Based on current economic and market conditions, the Developer 598187.12\22245.0079 26 expects to continue to develop Village One, Village One West and Village Five concurrently over the next several years. The Developer's development expectations could change, however, due to economic and market conditions, or other factors. The Developer proposes to develop Village One West with approximately 740 units of single family residential development, and to develop Village Five with approximately 1,098 residential units, including 916 single family units and 182 multifamily units, The Developer anticipates that 236 of the units currently proposed for Village Five will be transferred to Otay Ranch V, LLC, an entity owned by the Alffed Baldwin family, with such transfer generating no revenues to the Developer. To date, 118 of these 236 units have been transferred, The development of these 236 units will be contingent upon payment of a significant amount of infrastructure costs by Otay Ranch V, LLC No assurances can be given that these costs will be paid, Constituent members of the Developer are under no obligation to contribute capital for development of any of Village One, Village One West or Village Five; therefore, sufficient revenues may not be available to develop these areas. The full development of the Assessment District property requires the expenditure of substantial amounts both directly related to the Assessment District property and for other infrastructure improvements for properties outside the Assessment District Table 7 below has been provided by the Developer to indicate its present projection of the sources and uses associated with the development of both the Assessment District, Village One West and Village Five. The Developer's projection of sources and uses associated with the development of the Assessment District, Village One West and Village Five is based on current land use approvals, 598187.12\22245.0079 27 TABLE 7 DEVELOPER'S PROJECTED SOURCES AND USES OF FUNDS ASSESSMENT DISTRICT NO. 97-2 AND OTHER DEVELOPABLE PROPERTY UNDER CURRENT LAND USE STATUS 4/1/99 to 12/31/99 Year 2000 2000/Bevond Sonrces of Funds Assessment District No. 97-2 Net Land Sale Proceeds $40,137,010 $ 1,800,000 $ 1,523,500 Net Bond Proceeds 10,806,000 - Miscellaneous 1,872,089 2,679,483 Other SPA One Developable Property(l) Net Land Sales Proceeds 27,337,677 58,242,427 36,40 I ,932 Net Bond Proceeds 5,118,430 9,439,976 9,422,992 CFD No, 99-1 Contribution(3) - - 5,311,820 Miscellaneous 2,1 00,000 - - Total Sources $87,371,206 $72,161,885 $52,660,244 Uses of Funds Assessment District No. 97-2 Public Facilities $ 5,126,117 $ - $ 643,249 Other Capital Improvements 11 ,364,598 7,772,172 2,573,489 Subtotal AD No, 97-2 Property 16,490,715 7,772,172 3,216,738 Other SPA One Developable Property Public Facilities 6,631,242 13,386,723 29,146,226 Other Capital Improvements 5.358,789 21,834,887 34,957,928 Subtotal SPA One Developable Properties 11,990.041 35,221,610 64,1 04,1 54 Operating Costs 3,619,931 2.554,1 07 1.206,392 Total Uses $32.100.687 $45.547.889 $ 68.527 .284 Sources in Excess of Uses $55.270.519 $26.613.997 $(15.867.039) Cumulative Cash $60.488.944 $87 .1 02.941 $ 71.235.901 ,<) Includes Developer's property in Village One West and Village Five. '" Expected bond proceeds from ßJ Amounts to be contributed by adjacent property owners fOf Olympic Parkway construction. Source: The Developer. 598187.12\22245.0079 28 As of March 31,1999, the Developer has expended over $25,000,000 developing the land within the Assessment District, including over $6,500,000 for improvements being financed by the Assessment District The Developer expects to expend an additional approximately $27,500,000 to complete development of the land within the Assessment District, including approximately $5,700,000 for improvements being financed by the Assessment District No bank loans or other debt exists as an encumbrance on the property owned by the Developer within the Assessment District Other than proceeds of the Bonds, there can be no assurance that projected sources of revenue will, in fact, be available as projected by the Developer. Although the Developer anticipates that Village One West and Village Five will be developed and marketed concurrently with property within the District, the Developer does not currently have any contracts with prospective builders or appraisals which might assist in detennining the actual value of such property, The projected sources and uses of funds in Table 7 has been prepared based upon assumptions of future sales revenues, development costs, operating costs, property taxes, public facilities financing and other items, The Developer does not currently have any contracts with prospective buyers or appraisals which might assist in detennining the sales revenues amounts or timing, The Developer has previously closed sales of land to buyers prior to commencement of grading, and the projections assume a continuation of this practice. The Developer may decide or may be required by the marketplace to postpone the closings of sales until after commencement or possibly completion of grading. Therefore, there can be no assurance that the projected revenues will not be less than projected or occur later than projected by the Developer. Development plans have not yet been approved nor construction bids received nor the work undertaken, Therefore, there can be no assurance that the projected development costs will not be greater than projected or occur sooner than projected by the Developer, The Developer has made and will make in the future cash distributions to its members, The amounts and timing of any distribution will reduce the cash available to the Developer for construction of improvements and operations. Furthennore, neither member of the Developer has an obligation to contribute funds. There can be no assurance that any of the other assumptions made by the Developer will occur in the amounts and at the time projected or that other matters not considered in the projections will occur that have an adverse impact on cash available to the Developer for construction of improvements, Other than proceeds of the Bonds, there can be no assurance that any funds will be available as projected by the Developer. To the extent that actual revenues are less than projected above or received more slowly than projected above, other needed financing mechanisms are not put into place, other property owners do not contribute funds as projected, or actual expenses are greater than or occur earlier than projected above, there could be a shortfall in the cash required to complete the development as projected above, In particular, significant land use restrictions must be satisfied prior to land sales and/or development of Village One West and Village Five, including, without limitation, compliance with various environmental laws and regulations and the construction of portions of Olympic Parkway, which will be, in part, the obligation of participants other than the Developer. No assurances can be given that these significant costs will be paid as needed for the projected development, or at all. Market Absorption Study According to the Market Absorption Study prepared by the Meyers Group with respect to the Property located in the Assessment District, the approved development plan for the land within the Assessment District includes 2,739 multifamily and single family detached residential units in a variety of location settings, Of these, 1,569 units are assumed to be for-sale units, The remainder of the units are 1,170 multi-family units (rental) at densities ranging from approximately 24 to approximately 40 units per acre, Detached for-sale lot sizes range from approximately 3,000 to approximately 6,600 square feet The Market Absorption Study assumes five more single family units than the currently expected total of 1,564, The Meyers Group has 598187.12\22245.0079 29 concluded that this minor change in the number of units is not material and will not affect the conclusions reached in the Market Absorption Study, All 1,184 for-sale units in the Phase 2B, 1 B and 4 areas of Otay Ranch, Village One have been committed to merchant builders and development ofresidential units is underway, One project started selling in the Fourth Quarter of 1998 (Silverado by Centex Homes) and four others are projected to come on-line in early 1999, Additional products are projected to be introduced starting in mid-1999 and the first rental units are projected to start leasing in late 1999. The merchant builders in the initial stage of development in the Assessment District are major public homebuilders or well-established regional homebuilders, including Shea Homes, Centex Homes, Standard Pacific, Presley Homes, and Trimark Development, Two of these builders, Shea and Centex Homes, are presently building homes in the South Bay area of San Diego County, The Market Absorption Study concludes, given the foregoing proposed product and pricing parameters, that all of the for-sale residential units at Otay Ranch, Village One should be fully built-out by the end of 2003, at an average annual absorption rate of +/-194 for-sale units per year, A year-by-year projection of absorption potential (assuming continued development with no stops due to unanticipated market or business factors) is shown in Appendix G. As projected, for-sale residential unit absorption should range up to 554 units in the first full year of sales (1999), the peak year with the widest array of detached projects selling (nine active projects selling concurrently), This sales projection assumes that the Developer and merchant builders maximize the market potential to bring residential product into an accelerated market and requires strict product differentiation, appropriate pricing with other competitive products and a smooth schedule of approvals processing, home construction and infrastructure completion (no delays due to weather, construction worker or materials shortages or delays in processing final maps, reviewing plans or approving any product plans), See Appendix G - "SUMMARY OF MARKET ABSORPTION STUDY' for additional detail regarding the Study. Current Status of Development The Village One infrastructure consists of four major construction categories, Each of these is discussed below. Maior Backbone Infrastruclure The major backbone infrastructure consists of the six-lane arterial Paseo Ranchero (between Telegraph Canyon Road and Palomar), the four-lane collector Palomar Street (between Paseo Ranchero and the easterly property boundary) and the two-lane collector Monarche Drive. These roads provide access from existing City improvements to residential and commercial areas, These roads (with the exception of two lanes on Paseo Ranchero) will be entirely funded by the Assessment District and will be constructed in two phases. Paseo Ranchero, Palomar (between Paseo Ranchero and Monarche) and Monarche will be constructed in the first phase, These first phase roads are currently paved with all storm drain, sewer, water and dry utilities completed, Street-related landscaping is approximately 90% complete, The second phase consists of the balance of Palomar Street from the phase one improvements to the easterly property boundary, Improvements plans are approved by the City Engineering Department, performance bonds are in place and this second phase portion of the Palomar is expected to begin construction in May 1999, It is anticipated that all improvements within this infrastructure category will be completed by September 1999. Minor Backbone Infrastructure These two-lane collector roads complete the onsite improvements being installed by the Developer to provide access from the major backbone roads to the merchant builder sites. These roads are planned to be installed in four phases over the next 12 months, The first phase (Santa Inez) which provides access to the 598187.12\22245.0079 30 initial five merchant builder sites is paved with all stonn drain, sewer, water and dry utilities and landscape completed, The second phase access road (Santa Lucia) is graded with stonn drain in place, improvement plans are approved by the City Engineering Department and perfonnance bonds are in place. The remaining future phases of collector roads and associated utilities will be coordinated with the requirements of the merchant builders and are projected to be funded by the Developer. Intract Infrastructure These roads and improvements occur within the merchant builder tracts and are designed to provide direct access to residential units, Each merchant builder is responsible for the timing and construction of these facilities to accommodate its sales and construction schedules, The first phase builders (408 single-family homes) have approved and bonded intract improvement plans and recorded final maps. Ref!ional Infrastructure Development within the City of Chula Vista is restricted by, among other things, the City's Public Facilities Finance Plan (the "PFFP") and Growth Management Ordinance, The PFFP applicable to the Assessment District establishes thresholds for regional facilities including schools, parks and offsite roadways, In particular, construction of Olympic Parkway is required for the development of the land within the Assessment District and surrounding properties, See "Certain Limitations on Development Phasing" below. The City is entitled under its various land use programs and Growth Management Ordinance to withhold or significantly delay issuance of final maps for future projected development if regional infrastructure is found to be inadequate, See "Certain Limitations on Development Phasing" below, The Developer is participating in the City of Chula Vista Transportation Development Impact Fee (TDlF) program and the merchant builders will be participating in the City's Public Facilities Development Impact Fee Program (PFDlF) to provide a portion of the funds for the required regional infrastructure, Construction Status The entire first phase (shown as Areas R-1 to R-5 in the following table), which is planned for 408 single family units, 160 multifamily units and an II-acre park, is 100% graded and paved roads and utilities are in place to all parcels, Centex Homes (Area R-3) has completed construction of model homes and its first phase of production homes as well as intract improvements for its entire parcel of 75 homes. Centex has also commenced construction on its second and third phases of production homes, Centex had closed escrow on 25 homes as of the end of April 1999. Standard Pacific has completed construction of its model homes and intract improvements for Areas R-2 and R-5 and it has commenced construction on its first phases of production homes as well. Shea Homes has commenced construction on its two model complexes, intract improvements and first phases of production homes, All builders in the first phase have approved Final Maps and subdivision improvement plans, The entire second phase (Areas R-6 to R-IO in the following table), which is planned for 466 single family units, 165 multifamily units and a 10-acre elementary school site, is 100% graded. Paved roads and utilities are in place to all single-family parcels, the multifamily site and the elementary school site, Presley Homes, Trimark Homes and Centex Homes have commenced construction on intract improvements and model homes, and Centex (R-8) has also commenced construction on its first phase of production. The third phase (Areas R-12 to R-14 in the following table), which is planned for 310 single family lots, is 100% graded and construction of paved roads and utilities has commenced, 598187.12\22245.0079 31 SUMMARY OF DEVELOPMENT BASED ON EXISTING LOT SALES Area Builder No. Lots Pad Size Approx. Home Price R-1 UDC/Shea Homes 86 60 x 110 $ 300,000 R-2 Standard Pacific 81 50 x 85 205,000 R-3 Centex 75 46 x 75 182,000 R-4 UDC/Shea Homes 94 55 x 105 265,000 R-5 Standard Pacific 72 50 x 100 250,000 R-6 Trimark 77 50 x 100 207,000 R-7 UDC/Shea Homes 131 60 x 110 300,000 R-8 Centex 61 50 x 85 211,000 R-9 Presley 74 50 x 100 240,000 R-1O UDC/Shea Homes 123 55 x 105 265,000 R-12 Centex 83 50 x 85 211,000 R-B Centex 88 46 x 75 182,000 R-14 Presley 139 34 x 85 N/A R-19 R-21 TOTAL SINGLE F AMIL Y L184 R-19 Prowswood 204 Multifamily N/A R-21 Prowswood 168 Multifamily N/A TOTAL MUL nF AMIL Y 462 It is the responsibility of the Developer to grade the lot pads to "blue top" condition and to undercut for the streets. In addition, it is the responsibility of the Developer to build the two-lane collector roads that provide access to the individual subdivision parcels from East Palomar Street or Monarche Drive, The Developer's responsibility includes installing utilities and landscape associated with those streets as well as the "attended entries." These Developer's responsibilities are categorized as "infrastructure." The merchant builders identified above, and future merchant builders are responsible for building the streets within each tract including the sanitary and storm sewers, water distribution system, dry utilities and landscaping (including fences and walls), These merchant builder construction responsibilities are categorized as "intracts." In addition, the merchant builders are responsible for paying all of the fees due at building permit issuance except for Transportation Development Impact Fees, Park Acquisition and Development Fees and water capacity charges, which remain obligations of the Developer. Shea Homes currently owns property in the Assessment District which is responsible for approximately _% of the total unpaid assessments, Shea Homes is one of the largest residential homebuilders in San Diego, as well as the nation, The JF Shea Company privately owns Shea Homes, Inc. and has more than 100 years of experience in the construction industry, Shea Homes proposes to offer two distinct neighborhoods. The first, Fairfield, includes parcels R-1 and R-4 totaling 180 homesites, Homes within Fairfield are expected to range from 2,500 to 3,500 square feet 598187.12\22245.0079 32 on a minimum 6,600 square foot lot, priced in the mid $300,000s. The other community to be developed by Shea Homes, Summerfield, includes Areas R-7 and R-IOO, totaling 254 lots, Summerfield's homes are expected to range from 2,300 to 2,800 square feet on a minimum 5,500 square foot lot and be priced in the high $200,000s, Currently there are approximately $5,000,000 of improvements to be completed by Shea Homes prior to model construction, Shea Homes' estimated buildout for both neighborhoods is the year 2001. Completion of such infrastructure, intracts and the identified developments is speculative and subject to various risks and delays, See "Special Risk Factors - Failure to Develop Land," - Future Land Use and Growth Control Initiatives." Certain Limitations on Development Phasing Further development within Village One, Village One West and Village Five is restricted by certain significant tentative map conditions, the Otay Ranch General Development Plan, Sectional Planning Area One (SPA One) and the Planned Community District Regulations for SPA One, the City's Public Facilities Finance Plan (the "PFFP") and the City's Growth Management Ordinance. The most significant restriction to the issuance of building permits for the development of the property in the Assessment District, as well as the development of "other developable property" as identified in Table 7 under the caption "THE OT A Y RANCH PROJECT - Proposed Development of Village One and Project Pro-forma", are the requirements for the construction of schools, parks and regional roads, including a part of Olympic Parkway, a major east-west 6- lane regional roadway. Pursuant to the foregoing City requirements, building permits will be released incrementally as certain thresholds are met The foregoing documents are available for review in the office of the City's Planning Department Tentative Map Conditions, Set forth below are certain selected excerpts from the City's Tentative Map Conditions of Approval for Otay Ranch Villages One and Phase I-A and a portion of Phase 2-A in Village Five (excluding 288 acres located in a portion of Villages One and Five,) The sections below are not an exhaustive list, but merely the broadest of the City's potential powers to restrict development . If any of the terms, covenants or conditions contained in the Tentative Map shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shall have the right to revoke or modify all approvals granted including issuance of building permits, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation, . The City may withhold building permits for the subject subdivision if anyone of the following occur: 1. Regional development threshold limits set by the adopted East Chula Vista Transportation Phasing Plan have been reached, 2, Traffic volumes, levels of service, public utilities and/or services exceed the threshold standards in the then effective Growth Management Ordinance, 3. The applicant does not comply with the terms of the Reserve Fund Program, which requires the payment of a $75 fee per building permit to the City. 598187.12\22245.0079 33 · The City may withhold building pennits for any of the phases of development identified in the Public Facilities Financing Plan ("PFFP") for Otay Ranch SPA One if the required facilities, as identified in the PFFP or as amended by the Annual Monitoring Program, have not been completed, · The PFFP or reVISIons thereto shall be adhered to for the SPA and tentative map with improvements installed in accordance with said plan or as required to meet threshold standards adopted by the City, The PFFP identifies a facility phasing plan based upon a set of assumptions concerning the location and rate of development within and outside of the project area, Throughout the build-out of SPA One, actual development may differ from the assumptions contained in the PFFP (i.e., the development of EastLake III). Neither the PFFP nor any other SPA One document grant the property owners within SPA One an entitlement to develop as assumed in the PFFP, or limit the SPA One's facility improvement requirements to those identified in the PFFP, Compliance with the City's threshold standards, based on actual development patterns and updated forecasts in reliance on changing entitlements and market conditions, shall govern SPA One development pattems and the facility improvement requirements to serve such development In addition, the sequence in which improvements are constructed shall correspond to any future Eastern Chula Vista Transportation Phasing Plan or amendment to the Growth Management Program and Ordinance adopted by the City. The City Engineer may modify the sequence of improvement construction should conditions change to warrant such a revision. · The Applicant shall comply with Chapter 19,09 of the Chula Vista Municipal Code (Growth Management) as may be amended from time to time by the City. Said chapter includes but is not limited to: threshold standards (19,09.04), public facilities finance plan implementation (19,09,090), and public facilities finance plan amendment procedures (19,09.100), · The City is presently in the process of amending its Growth Management Ordinance to add a proposed Section 19,09,105, to establish provisions necessary to ensure compliance with adopted threshold standards (particularly traffic) prior to construction of State Route 125. Said provisions will require the demonstration, to the satisfaction of the City Engineer, of sufficient street system capacity to accommodate a proposed development as a prerequisite to final map approval for that development The foregoing conditions are without limitation, other than as specifically recited above, and may be implemented by the City at any time, Investors should note that, in particular, the City is amending its Growth Management Ordinance and no assurance can be given that its tenns will not be more restrictive on development than those currently in effect Roadwav ImDrovements Agreement To implement certain provisions of the PFFP, the City, the Developer and McMillin Otay Ranch LLC, a Delaware limited liability company ("McMillin"), have entered into an Agreement for Financing and Construction of Olympic Parkway and Related Roadway Improvements (the "Roadway Improvements Agreement"), McMillin is the master developer of approximately _ acres adjacent to and immediately east of the Assessment District which is within SPA One, The purpose of the Roadway Improvements Agreement is to establish a system for the financing and construction of Olympic Parkway and related transportation improvements required by the PFFP. Perfonnance under the Roadway Improvements Agreement will allow the approval and recording of additional final maps for the land within Village One, Village One West and Village Five to proceed by stages. The Roadway Improvements Agreement requires the Developer to guide and construct Phases One, Two and Three of Olympic Parkway (other than a portion of Phase One which is to be graded by McMillin) and two additional roadways knows as "Paseo Ranchero" and "East Palomar Road" and requires McMillin to 598187.12\22245.0079 34 grade a portion of Olympic Parkway located primarily on its property within SPA One and to construct La Media Road from Olympic Parkway to East Palomar Road, The total cost of these improvements is approximately $62,000,000, A failure of the Developer or McMillin to perfonn their obligations under the Roadway Improvements Agreement related to the construction of the roadways will prevent the Developer and McMillin from receiving final maps in accordance with the schedule set forth in the Roadway Improvements Agreement, The Roadway Improvements Agreement assigns 25% (approximately $13,000,000) to McMillin. The remaining 75% of the cost of Olympic Parkway (approximately $38,500,000) and all of the cost of East Palomar Road and Paseo Ranchero Road (approximately $10,500,000) are obligations of the Developer, The Developer expects to fund approximately $19,000,000 of its share of Olympic Parkway with the proceeds of CFD No, 99-1, which the Developer has requested the City to fonn. The balance of the Olympic Parkway cost of approximately $19,500,000 is to be provided by the Developer, The Roadway Improvements Agreement requires the Developer to provide the City with a cash payment or various payment and perfonnance bonds and/or bond proceeds of proposed CFD No. 99-1 of $17,200,000 on or before January I, 2000. The Developer does not have the required cash nor has it made arrangements to obtain the various payment and perfonnance bonds, To secure this obligation, the Developer has given the City a deed of trust on certain property which the Developer owns in SPA One outside of the Assessment District, which the Developer has represented to the City has a value of at least $17,000,000, The Developer is having the property subject to the deed of trust appraised and, if the value of the property is less than $17,000,000, the Developer must pledge additional property. A failure of the Developer to provide the appraisal or to pledge additional property as required by the Roadway Improvements Agreement will prevent the Developer and its merchant builders from receiving final maps for the SPA One property. The Developer and McMillin have agreed to an allocation of the final map equivalent dwelling units available under the Roadway Improvements Agreement As of the date hereof, the Developer has 1,094 equivalent dwelling units ("EDUs") available, The Developer receives an allocation of additional EDUs as Improvement Stages 3 through 7 under the Roadway Improvements Agreement are satisfied, Improvement Stages 3 and 4 require McMillin to post grading bonds for its portions of Olympic Parkway and for La Media Road and to deliver $4.7 million to the City in cash or community facilities district bond proceeds for Olympic Parkway. Unless and until McMillin's obligations have been satisfied, the Developer may not receive an additional allocation of final map EDUs, Should McMillin not perfonn, the Developer does have the right to cure McMillin's breach under the Roadway Improvements Agreement A default under the Roadway Improvements Agreement by the Developer or McMillin gives the City the right to revoke all previously allocated EDUs for which a final map has not been recorded. As of May 15, 1999, final maps for _ units have been recorded within the Assessment District As of May 15, 1999, the Developer had sold property within the Assessment District upon which 1,407 EDUs are to be located, but under the Roadway Improvements Agreement has authority to record final maps for only 1,094 EDUs, It is not until Stage 5 under the Roadway Improvements Agreement that the Developer will have been allocated EDUs sufficient to pennit final maps to record for all of the property previously sold by the Developer, and Stage 6 must be satisfied before final maps can record for all of the projected units within the Assessment District 598187.12\22245.0079 35 Table 8 below summarizes the Improvement Stages under the Roadway Improvements Agreement. TABLE 8 ROADWAY IMPROVEMENTS AGREEMENT PHASING PLAN Threshold by Phase Maximum Improvement EDU Otay Stage Improvements and Other Requirements Limits· McMillin Ranch IA Approval of the Olympic Parkway and Related 591 100 Roadway Financing and Construction Agreement by City Council, execution of Agreement by McMillin 1B Approval of the Olympic Parkway and Related - 49] Roadway Financing and Construction Agreement by City Council, execution of Agreement by Otay Ranch Co. & Trust Deed Both Stage 1A and 1B obligations shall be met 1,800(1) 901 899 before additional EDUs shall be approved beyond 1,213 EDUs. Upon completion of ALL Stage 1 (lA and 1B) requirements, City Conneil can approve final maps with EDU(s) not exceeding: 2 4(d) take allocation approved by the County, including 195 0 195 the coastal sage deficit, or MSCP approval Concurrence by the Resource Agencies of the adequacy of the existing biological studies for roadway and borrow sites, or MSCP approval Upon completion of Stage 2 requirements, City 1,995(1) 901 1,094 Council can approve final maps with EDU(s) not exceeding: 3A and 3B Issuance of 404, 40 I and 1601 permits and concurrence 531 - 258 with issuance of the 4( d) permit by applicable local, state and federal agencies for Olympic Parkway from Interstate 805 to the eastern ütay Ranch boundary and borrow sites, Approval of full grading plans and full bonding of grading for Paseo Ranchero, La Media, Olympic Parkway and East Palomar, · These maximum EDU limits do not supersede other requirements contained in the PFFP, approved Tentative Map and Final Map agreements. 598187.12\22245.0079 36 -----....--- Appropriate detention basin agreements approved by City for Poggi Canyon, Both stage 3A and 3B obligations shall be met 2,526(1 1,174 1,352 before additional EDUs shall be approved beyond ) 1995 EDU. Upon completion of ALL stage 3 (3A and 3B) requirements, City Council can approve final maps with EDU(s) not exceeding: 4 Bond proceeds from Community Facilities District No, 164 164 0 97-3, or a cash equivalent, have been delivered to the City and certified by the Finance Director, Upon completion of stage 4 requirements, City 2,690(1 1,338 1,352 Council can approve final maps with EDU(s) not ) exceeding: 5 Improvement plans for Paseo Ranchero and Olympic 436 0 436 Parkway from Interstate 805 to Paseo Ranchero are approved and security received by the City in the form of cash for Olympic Parkway. Upon completion of stage 5 requirements, City 3,126(1 1,338 1,788 Council can approve final maps with EDU(s) not ) exceeding: 6 Improvement Plans for La Media, East Palomar and 2,303 0 2,303 Olympic Parkway from Paseo Ranchero to East Palomar are approved and security received in the form of cash payment by the City, Upon completion of stage 6 requirements, City 5,429(1 1,338 4,091 Council can approve final maps with EDU(s) not ),(3) exceeding: 7 Improvement Plans for Olympic Parkway to eastern Otay Ranch boundary are approved and security received by the City. Upon completion of stage 7 requirements, City Full Full Full Council can approve final maps with EDU(s) not buildout of Buildout Build exceeding: SPA One out (1) Improvements shall be fully secured or all requirements must be satisfied before the maximum EDU limits are reached, (2) The Agreement for Financing and Construction of Olympic Parkway and Related Roadway Improvements implements this Table 8. (3) Commercial units are counted toward the maximum EDU when a building permit is issued for commercial development, or starting at Improvement Stage 6, whichever occurs first. 598187.12\22245.0079 37 There are significant environmental issues relating to the construction of Olympic Parkway that could substantially delay the Developer's and the City's anticipated construction schedule set forth in the Roadway Improvements Agreement. In the event that the City is unable to obtain the environmental permits required to construct Olympic Parkway, the time for performance by McMillin and the Developer under the Roadway Improvements Agreement is extended, Further, various rights of way over property not owned by the Developer need to be obtained. SPECIAL RISK FACTORS The following information supplements other sections of this Official Statement in order to highlight certain risks associated with the Bonds, The order in which the risks are presented is not intended to reflect either the likelihood that a particular event will occur or the relative significance of such an event. Moreover, there may well be other risks associated with an investment in the Bonds in addition to those set forth herein. Limited Obligations; Failure to Pay Assessment Installments The Bonds are not general obligations of the City, but are limited obligations payable solely from assessment installments and other amounts held pursuant to the Bond Indenture (other than as necessary to be rebated to the United States of America pursuant to section 148(f) of the Code and any applicable regulations promulgated pursuant thereto). Funds for the payment of the principal of and interest on the Bonds are derived from annual assessment installments and the interest thereon, the sum of which is equal to the annual debt service on the Bonds. The amount of annual assessment installments that are collected could be insufficient to pay principal of and interest on the Bonds due to non-payment of the annual installments levied or due to insufficient proceeds received from a foreclosure sale of a delinquent parcel within the Assessment District. The City's legal obligations in the event of a delinquency are limited to making transfers from the Reserve Fund to the Redemption Fund and instituting judicial foreclosure proceedings, If there are additional delinquencies after exhaustion of the Reserve Fund, the City has no liability to transfer into the Redemption Fund any other available moneys of the City. Additionally, there can be no assurance that the City will be able to avoid depletion of the Reserve Fund and delays in payment of debt service on the Bonds while foreclosure is pursued. The Bonds cannot be accelerated in the event of a default, The Act provides that a property is to be sold for the Minimum Price and that under certain circumstances property may be sold upon foreclosure at a lesser Minimum Price or without a Minimum Price. The court may authorize a sale at less than the Minimum Price if the court determines that sale at less than the Minimum Price will not result in an ultimate loss to the owners of the Bonds or, under certain circumstances, if the holders of 75% or more of the outstanding Bonds consent to such sale. In the event the court modifies the judgment and permits a foreclosure sale at a lesser Minimum Price or without a Minimum Price, and the property is then sold at a lesser price than the Minimum Price originally established, the assessment lien on the property shall be reduced by the difference between the Minimum Price originally established and the price at which the property is sold, Such a reduction would mean that the Bond owners may suffer an ultimate loss equal to the reduction in the amount of the assessment lien, See "-Bankruptcy and Foreclosure Delays" below, Failure by owners of the parcels to pay installments of assessments when due, depletion of the Reserve Fund, delay in foreclosure proceedings, or the inability of the City to sell delinquent parcels at foreclosure for amounts sufficient to cover the delinquent assessment installments may preclude full or punctual payment of debt service on the Bonds, Unpaid assessment installments do not constitute a personal indebtedness of the current or subsequent owners of the parcels included in the Assessment District. There is no assurance that any owner of a parcel of land included in the Assessment District will be able to pay the 598187.12\22245.0079 38 assessment installments or that it will pay such installments even though financially able to do so, See "THE ASSESSMENT DISTRICT - Tax Delinquencies" for a discussion of historical delinquencies of entities related to the Developer, Delinquency Resulting in Ultimate or Temporary Loss on Bonds If a temporary deficiency occurs in the Redemption Fund with which to pay Bonds that have then matured, past due interest or the principal and interest on Bonds coming due during the current year, but it does not appear to the Fiscal Agent that there will be an ultimate loss to the Bond owners, the Fiscal Agent shall pay the principal of Bonds which have matured as presented and make interest payments on the Bonds when due, as long as there are available funds in the Redemption Fund, in the following order of priority: (I) All matured interest payments shall be made before the principal of any Bonds is paid, (2) Interest on Bonds of earlier maturity shall be paid before interest on Bonds of later maturity, (3) Within a single maturity, interest on lower-numbered Bonds shall be paid before interest on higher-numbered Bonds. (4) The principal of Bonds shall be paid in the order in which the Bonds are presented for payment. Any Bond which is presented but not paid shall be assigned a serial number according to the order of presentment and shall be returned to the Bond owner. When funds become available for the payment of any Bond which was not paid upon presentment, the Fiscal Agent shall notify the registered owner of such Bond by registered mail to present the Bond for payment. If the Bond is not presented for payment within ten days after the mailing of the notice, interest shall cease to run on the Bond. If it appears to the City Treasurer that there is a danger of an ultimate loss accruing to the Bond owners for any reason, he or she is required pursuant to the Act to withhold payment on all matured Bonds and interest on all Bonds and report the facts to the City Council so that the City Council may take proper action to equitably protect all Bond owners, Upon the receipt of such notification from the City Treasurer, the City Council is required to fix a date for a hearing upon such notice, At the hearing the City Council must determine whether in its judgment there will ultimately be insufficient money in the Redemption Fund to pay the principal of the unpaid Bonds and interest thereon. If the City Council determines that in its judgment there will ultimately be such a shortage (an "Ultimate Loss"), the City Council shall direct the Fiscal Agent to pay to the owners of all outstanding and unpaid Bonds such proportionate amount thereof as the amount of funds on hand in the Redemption Fund bears to the total amount of the unpaid principal of the Bonds and interest which has accrued or will accrue thereon. Similar proportionate payments shall thereafter be made periodically as moneys come into the Redemption Fund, Upon the determination by the City Council that an Ultimate Loss will occur, the Fiscal Agent shall notify all Bond owners to surrender their Bonds to the Fiscal Agent for cancellation. Upon cancellation of the Bonds, the Bond owner shall be credited with the principal amount of the Bond so canceled. The Fiscal Agent shall then pay by warrant the proportionate amount of principal and accrued interest due on the Bonds of each Bond owner as may be available from time to time out of the money in the Redemption Fund, Interest shall cease on principal payments made from the date of such payment, but interest shall continue to accrue on the 598187.12\22245.0079 39 unpaid principal at the rate specified on the Bonds until payment thereof is made, No premiums shall be paid on payments of principal on Bonds made in advance of the maturity date thereon. If a Bond is not surrendered for registration and payment, the Fiscal Agent shall give notice to the Bond owner by registered mail, at the Bond owner's last address as shown on the registration books, of the amount available for payment, Interest on such amount shall cease as of ten days from the date of mailing of such notice. If the City Council determines that in its judgment there will not be an Ultimate Loss, it shall direct the Fiscal Agent to pay matured Bonds and interest as long as there is available money in the Redemption Fund, The priority of payments will be as set forth in the first paragraph of this subsection, Non-Cash Payments of Assessments The Act permits the owner of a parcel that is subject to an unpaid assessment to tender any bond secured by such assessment in payment or partial payment of any installment of the assessment or interest or penalties thereon which may be due or payable, A bond so tendered is to be accepted at the par amount thereof and credit is to be given for any interest thereon accrued to the date of the tender, Thus, if Bonds can be purchased at a discount, it may be to the advantage of a property owner to pay amounts due with respect to a assessment by tendering a Bond, Such a practice would decrease the cash flow available to the City to make payments with respect to other Bonds then outstanding, Direct and Overlapping Indebtedness The ability of an owner of land within the Assessment District to pay the assessment installments could be affected by the existence of other taxes and assessments imposed upon taxable parcels, Parcels in the District are located within the School District CFDs and the City Maintenance CFDs. See "THE ASSESSMENT DISTRICT-Estimated Direct and Overlapping Indebtedness" herein, The Developer expects to request the City to form a community facilities district on the land that it owns within the Assessment District and on other land owned by the Developer in the Otay Ranch to fund the Developer's share of the costs of Olympic Parkway, In addition, the City and other public agencies whose boundaries overlap those of the Assessment District could impose additional taxes or assessment liens on the property within the Assessment District. The lien created on the property within the Assessment District through the levy of such additional taxes would be on a parity with the lien of the assessments, The imposition of additional liens on the land within the Assessment District may reduce the ability or willingness of the landowners to pay the assessment installments and increase the possibility that foreclosure proceeds will not be adequate to pay delinquent assessment installments, Property Values The value of the land within the Assessment District is a critical factor in determining the investment quality of the Bonds, Ifa property owner is delinquent in the payment of an assessment installment, the City's only remedy is to commence foreclosure proceedings in an attempt to obtain funds to pay the assessment. Reductions in property values due to a downturn in the economy, physical events such as earthquakes or floods, stricter land use regulations or other events will adversely impact the security underlying the assessments. The estimated value-to-lien ratio on individual parcels varies greatly. See "SECURITY FOR THE BONDS--Property Values." No assurance can be given that, should a parcel with delinquent assessment 598187.12\22245.0079 40 payments be foreclosed upon and sold for the amount of the delinquency, any bid will be received for such property or, if a bid is received, that such bid will be sufficient to pay all delinquent assessments. Bankruptcy and Foreclosure Delays The payment of assessment installments and the ability of the City to foreclose the lien of delinquent unpaid assessment installments may be limited by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure, In addition, the prosecution of a foreclosure action could be delayed due to crowded local court calendars or legal delaying tactics, See "THE ASSESSMENT DISTRICT - Tax Delinquencies" for a discussion of current and past delinquencies and the previous bankruptcy of entities related to the Developer, The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified, as to the enforceability of the various legal instruments, by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally, Although bankruptcy proceedings should not cause the lien of the assessments to become extinguished, bankruptcy of a property owner could result in a delay in prosecuting superior court foreclosure proceedings and could result in the possibility of delinquent assessment installments not being paid in fulL Such a delay would increase the likelihood of a delay or default in payment of the principal of and interest on the Bonds, The payment of assessment installments and the ability of the City to foreclose the lien of a delinquent assessment installment could be substantially curtailed by bankruptcy, insolvency, or other laws generally affecting creditors' rights or by the laws of the State relating to judicial foreclosure. The ability of the City to foreclose the lien of a delinquent unpaid assessment payment may be limited with regard to properties in which the Federal Deposit Insurance Corporation ("FDIC") has an interest. In the event that any financial institution making any loan which is secured by real property within the Assessment District is taken over by the FDIC and prior thereto or thereafter, the assessment installments become delinquent, the ability of the City to collect interest and penalties specified by state law and to foreclose the lien of a delinquent unpaid assessment may be limited. The FDIC's policy statement regarding the payment of state and local real property taxes (the "Policy Statement") provides that the FDIC intends to pay valid real property taxes, interest and penalties, in accordance with state law, on property which at the time of the tax levy is owned by institutions in an FDIC receivership, unless abandonment of the FDIC interest is determined to be appropriate, However, the Policy Statement is unclear as to whether the FDIC considers assessments such as those levied by the City to be "real property taxes" which it intends to pay. Moreover, the Policy Statement provides that, with respect to parcels on which the FDIC holds a mortgage lien, it will not permit its lien to be foreclosed out by a taxing authority without its specific consent, nor will it payor recognize liens for any penalties, fines, or similar claims imposed for the nonpayment of taxes, The City is unable to predict what effect the application of the Policy Statement would have in the event of a delinquency on a parcel within the Assessment District in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be foreclosed out at a judicial foreclosure sale could reduce or eliminate the number of persons willing to purchase a parcel at a foreclosure sale. Such an outcome could cause a draw on the Reserve Fund and perhaps, ultimately, a default in payment on the Bonds. The City may also be limited in its ability to prosecute foreclosure proceedings against parcels in which other federal agencies (such as the Internal Revenue Service or the Drug Enforcement Agency) assert an interest. 598187.12\22245.0079 41 Failure to Develop Land; Growth and Entitlement Restrictions Substantially all of the parcels in the Assessment District are currently vacant. The development potential of those parcels is based, in part, on the assumption that discretionary approvals to build a residential or commercial structure, or in some cases, to subdivide land and build multiple structures can be obtained from the appropriate governmental agencies, The future development of the vacant land within the Assessment District may be adversely affected by existing or future governmental policies, or both, restricting or controlling the development of vacant land in the Assessment District. See "THE ASSESSMENT DISTRICT - Zoning" for a discussion of certain significant limitations on the ability of the Developer and merchant builders to complete the projected development of Village One, Village One West and Five, as well as the remaining Otay Ranch Project. Specifically, investors should consider the broad power of the City to halt or delay "B" map approval under its Growth Management Ordinance and the Roadway Improvements Agreement. There can be no assurance that the owners of the vacant land in the Assessment District will be able to secure the necessary discretionary approvals if they choose to develop their properties, See also "--Future Land Use Regulations and Growth Control Initiatives" below, In addition to reducing the ability and/or willingness of the owners of the vacant land in the Assessment District to make assessment installment payments when due, a reduction of the development potential of the vacant land would likely result in lower land values and reduce the proceeds which could be collected at a foreclosure sale in the event that assessment installments are not paid when due, Future Land Use Regnlations and Growth Control Initiatives It is possible that future growth control initiatives could be enacted by the voters or future local, state or federal land use regulations could be adopted by governmental agencies and be made applicable to the development of the vacant land within the Assessment District with the effect of negatively impacting the ability of the owners of such land to complete the development of such land if they should desire to develop it. Development could also be delayed or prohibited under the City's existing Growth Management Ordinance, In the event essential intTastructure such as the proposed Olympic Parkway is not timely completed to serve the growing population of the area, See "THE ASSESSMENT DISTRICT - Zoning" and "THE OTA Y RANCH PROJECT - Regional IntTastructure" for a discussion of some of the risks to the timely completion of needed infrastructure to serve the Assessment District and surrounding properties. See also "-Endangered Species" below, This possibility presents a risk to prospective purchasers of the Bonds in that an inability to complete desired development increases the risk that the Bonds will not be repaid when due, The owners of the Bonds should assume that any reduction in the permitted density, significant increase in the cost of development of the vacant land or substantial delay in development caused by growth and building permit restrictions or more restrictive land use regulations would cause the values of such vacant land within the Assessment District to decrease. A reduction in land values increases the likelihood that in the event of a delinquency in payment of assessment installments a foreclosure action will result in inadequate funds to repay the Bonds when due, Completion of construction of any proposed structures on the vacant land within the Assessment District is subject to the receipt of approvals from a number of public agencies concerning the layout and design of such structures, land use, health and safety requirements and other matters, The failure to obtain any such approval could adversely affect the planned development of such land. Under current State law, it is generally accepted that proposed development is not exempt tTom future land use regulations until building permits have been issued and substantial work has been performed and substantial liabilities have been incurred in good faith reliance on the permits, Because future development of vacant property in the Assessment District could occur over many years, if at all, the application of future land use regulations to the development of the vacant land could cause significant delays and cost increases not 598187.12\22245.0079 42 currently anticipated, thereby reducing the development potential of the vacant property and the ability or willingness of owners of such land to pay the assessment installments when due or causing land values of such land within the Assessment District to decrease substantially from those in the Appraisal. Endangered Species In recent years there has been an increase in activity at the State and federal levels related to the possible listing of certain plant and animal species found in the southern San Diego County area as endangered species, An increase in the number of endangered species could curtail development in the southern San Diego County area, Any action by the State or federal governments to protect species located on or adjacent to the property within the Assessment District could negatively impact the ability of the owners of that land to develop it. This, in turn, could reduce the likelihood of timely payment of the assessment installments levied against such that land and would likely reduce the value of such land and the potential revenues available at the foreclosure sale for delinquent assessment installments. See "-Failure to Develop Land" above, Currently, the property in Village One West, Village Five and all of Phase 7 in Village One of the Otay Ranch Project is proposed for inclusion in the [City's] Multiple Species Conservation Plan ("MSCP"), and is also subject to a separate [City/County] habitat protection plan which requires the dedication of Ll8 acres for each acre of sensitive habitat land proposed to be disturbed by development. The City has not yet approved the MSCP, but it has been approved by San Diego County and the City is expected to consider adoption of the MSCP later in , 1999. The Developer expects that the Otay Ranch Project will be subject to the MSCP; nevertheless, no assurances can be given that the development will not be subject to other mitigation measures and approvals or development restrictions due to the presence on the Otay Ranch property of endangered species, A portion of the property within the Assessment District contains federally listed threatened or endangered species; specifically, the Califomia Gnatcatcher and tarplant. The Developer and the City are processing the permits necessary to disturb this habitat. The City has the authority to issue a 4( d) interim loss permit to take the species subject to the concurrence of the [resource agencies - list agencies here] after no more than a 30-day public notice, The primary condition of the 4( d) permit is the dedication ofreplacement habitats sufficient to mitigate the impact of the disturbance, Such dedication has already been offered by the Developer and accepted by the City and County of San Diego. As an alternative to the 4(d) process, the State of California and the Federal Government established the National Communities Conservation Program ("NCCP"), locally implemented as the Multiple Species Conservation Plan ("MSCP"), as a means to receive permission to disturb the Gnatcatcher and tarplant, plus over 80 additional species. The City is in the process of preparing a MSCP Plan scheduled for adoption by the City in September of 1999. The Developer is not aware of any other endangered species on the Assessment District Property, Additionally, approximately 477 square feet in Village One West located south of the Developer's property has been identified as a potential vernal pool. If it is determined that the area is in fact a vernal pool, a 404 permit from the Army Corps of Engineers would be required to disturb the area or, in the alternative, the Developer could elect to develop around this area without materially altering its development plans. The Olympic Parkway right of way contains about 6,9 acres of wetlands. Disturbance of wetlands requires the issuance of a 404 permit from the Anny Corps of Engineers, The City is processing a 404 permit application for Olympic Parkway, The City has proposed creation of a 9.28 acres wetland within the project site as mitigation, Negotiations regarding mitigation and the issuance of the 404 pennit are ongoing. 598187.12\22245.0079 43 The Quino Checkerspot Butterfly was recently listed as an endangered species, The butterfly has been spotted on the Otay Ranch property, The Developer's property was surveyed for this butterfly during the spring of 1999 and none were found, Geologic, Topographic and Climatic Conditions The market value of the land and improvements within the Assessment District can be adversely affected by a variety of factors, particularly those which may affect infrastructure and other public improvements and private improvements of the parcels and the continued habitability and enjoyment of such public and private improvements, Such additional factors include, without limitation, geologic conditions (such as earthquakes), topographic conditions (such as earth movements) and climatic conditions (such as droughts, fire hazard and floods), Hazardous Substances While government taxes, assessments and charges are a common claim against the value of a parcel, other less common claims may also be relevant One of the most serious in terms of the potential reduction in the value of a parcel is a claim with regard to a hazardous substance. In general, the owners and operators of a parcel may be required by law to remedy conditions relating to releases or threatened releases of hazardous substances, The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as "CERCLA" or the "Super Fund Act", is the most well known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar in effect Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of a parcel whether or not the owner (or operator) had anything to do with creating or handling the hazardous substance. The effect, therefore, should any of the parcels within the Assessment District be affected by a hazardous substance, is to reduce the marketability and value by the costs of remedying the condition because the prospective purchaser of such a parcel will, upon becoming the owner of such parcel, become obligated to remedy the condition, The Appraisal does not take into account the possible liability of the owner (or operator) for the remedy of any hazardous substance affecting any such parcel. The City is not aware that the owner (or operator) of any parcel within the Assessment District has a current liability for hazardous materials, However, it is possible that such liabilities do currently exist and that the City is not aware of such liabilities, It is possible that hazardous substance liabilities may arise in the future with respect to any of the parcels within the Assessment District resulting from the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified, Additionally, such liabilities may arise not simply from the existence of a hazardous substance but from the method of handling such substance, All of these possibilities could have the effect of significantly reducing the value of a parcel. No Acceleration Provision The Bonds do not contain a provision allowing for the acceleration of the Bonds in the event of a payment default or other default under the terms of the Bonds or the Bond Indenture. Ballot Initiatives Articles XIII A, XIII B, XIII C, and XIII D of the California Constitution were adopted pursuant to measures qualified for the ballot pursuant to the State's constitutional initiative process, From time to time, 598187.12\22245.0079 44 other initiative measures could be adopted by California voters, The adoption of any such initiative might place limitations on the ability of the State, the City, or other local agencies to increase revenues or to increase appropriations or on the ability of the landowners to complete the development of the vacant land within the Assessment District See "-Failure to Develop Land" above, Proposition 218 An initiative measure entitled "The Right to Vote on Taxes Act" ("Proposition 218") was approved by the voters at the November 5,1996 statewide general election, Among other things, Proposition 218 added a new Article XIII D to the California Constitution. Certain provisions of Article XIII D altered the procedure previously applicable to the imposition of assessments by adding requirements and limitations thereto, In response to those provisions, an act entitled the "Proposition 218 Omnibus Implementation Act" (Statutes of 1997, Chapter 38) was approved by the California legislature and signed by the Governor. The City believes that the proceedings taken by it in connection with the confirmation of the assessments comply with all applicable legal requirements, In this context, Bond Counsel is of the opinion that all procedural requirements that must be satisfied under the Constitution and laws of California prior to the approval and confirmation of the assessments, including those contained in Proposition 218, have been satisfied, Proposition 218 also added a new Article XIII C to the California Constitution which, among other things, states that ". , , the initiative power shall not be prohibited or otherwise limited in matters of reducing or repealing any local tax, assessment, fee or charge:' Article XIII C does not define the term "assessment" The Act imposes on the person performing the duties of the County Auditor a mandatory duty to post installments on account of the assessments to the property tax roll of the County each fiscal year in amounts equal to the principal of and interest on the Bonds coming due in the succeeding fiscal year. The Proposition 218 Omnibus Implementation Act added Section 5854 to the California Government Code which states: Section 3 of Article XIII C of the California Constitution, as adopted at the November 5, 1996, general election, shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after that date, assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights protected by Section 10 of Article I of the United States Constitution, Accordingly, while Proposition 218 has not yet been interpreted by the courts and the matter is not completely free ÍÌ'om doubt, it is not likely that Proposition 218 has conferred on the voters the power to effect a repeal or reduction of the assessments or to otherwise interfere with the mandatory duty of the person performing the duties of the County Auditor in levying the annual assessment installments if the result thereof would be to impair the security of the Bonds, The interpretation and application of Proposition 218 with respect to the matters described above will be ultimately determined by the courts and cannot currently be predicted with certainty, Year 2000 Compliance The inability of many computer programs to distinguish between the years 2000 and 1900 (the "Year 2000 Problem") could disrupt the ability of the City and others to provide public services in general and services pertaining to the assessments and the Bonds in particular and/or could increase the cost of such services. For example, the Year 2000 Problem could impede or make more costly (i) the City's collection of assessment installments, calculation of assessment prepayments, administration of the funds and accounts held by the Fiscal Agent under the Bond Indenture, compliance with on-going disclosure requirements and 598187.12\22245.0079 45 compliance with restrictions applicable to investment yield and rebate and (ii) DTC's (and its Direct Participants' and Indirect Participants') distributions to the Beneficial Owners of the Bonds their respective shares of the principal of and interest on the Bonds. [The City believes that the computers and software responsible for the City services described above will be Year 2000-Ready by the end of 1999 and that it will be able to provide the services described above for which it is responsible without interruption after 1999.] Prospective purchasers of the Bonds should contact the DTC Participants through which they would purchase Bonds in order to detennine whether such DTC Participants and DTC itself would be able to successfully address the Year 2000 problem in a timely and efficient manner. DTC management is aware that some computer applications, systems and the like for processing data ("Systems") that are dependent upon calendar dates, including dates before, on, and after January 1,2000, may encounter "Year 2000 problems." DTC has infonned its Participants and other members of the financial community (the "Industry") that it has developed and is implementing a program that its Systems, as the same relate to the timely payment of distributions (including principal and income payments) to securityholders, book-entry deliveries and settlement of trades within DTC ("DTC Services"), continue to function appropriately, This program includes a technical assessment and a remediation plan, each of which is complete, Additionally, DTC's plan includes a testing phase, which is expected to be completed within appropriate time frames, However, DTC's ability to perfonn properly DTC Services is also dependent upon other parties, including but not limited to issuers and their agents, as well as third party vendors from whom DTC licenses software and hardware, and third party vendors on whom DTC relies for infonnation or the provision of services, including telecommunications and electrical utility service providers, among others, DTC has infonned the Industry that it is contacting (and will continue to contact) third party vendors from whom DTC acquires services to: (i) impress upon them the importance of such services being Year 2000 compliant; and (ii) detennine the extent of their efforts for Year 2000 remediation (and, as appropriate, testing) of their services. In addition, DTC is in the process of developing such contingency plans as it deems appropriate, According to DTC, the foregoing infonnation with respect to DTC has been provided tò the Industry for infonnational purposes only and is not intended to serve as a representation, warranty, or contract modification of any kind, Loss of Tax Exemption As discussed in this Official Statement under the caption "LEGAL MATTERS--Tax Exemption" interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date the Bonds were issued as a result of future acts or omissions of the City in violation of its covenants in the Bond Indenture, Should such an event of taxability occur, the Bonds are not subject to a special redemption and will remain outstanding until maturity or until redeemed under the redemption provisions contained in the Bond Indenture, Limited Secondary Market There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price, Although the City has committed to provide certain statutorily-required financial and operating infonnation, there can be no assurance that such infonnation will be available to Bond owners on a timely basis, The failure to provide the required annual financial infonnation does not give rise to monetary damages but merely an action for specific perfonnance, Occasionally, because of general market conditions, lack of current infonnation, the absence of a credit rating for the Bonds or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection with a particular issue are suspended or tenninated, Additionally, 598187.12\22245.0079 46 prices of issues for which a market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from the original purchase price. NO RATINGS The City has not made and does not contemplate making application to any rating agency for the assignment of a rating to the Bonds, CONTINUING DISCLOSURE In the Bond Indenture the City has covenanted for the benefit of the Owners and beneficial owners of the Bonds to comply with the Continuing Disclosure Certificate. The Continuing Disclosure Certificate requires the City to provide certain financial information and operating data relating to the Assessment District within seven months after the end of the City's fiscal year (the "Annual Report") and to provide notices of the occurrence of certain enumerated events (the "Listed Events"), The Annual Reports are required to be filed with each Nationally Recognized Municipal Securities Information Repository, Notices of Listed Events are required to be filed with the Municipal Securities Rulemaking Board. The specific nature of the information to be included in the Annual Reports and the Listed Events are set forth in the form of the Continuing Disclosure Certificate attached hereto as Appendix D. These obligations have been undertaken by the City in order to assist the Underwriters in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the "Rule"). The City is required to file its financial statements with its Annual Report, This requirement has been included in the City's Continuing Disclosure Certificate solely to satisfy the provisions of the Rule. The inclusion of this information does not mean that the Bonds are secured by any resources or property of the City other than the assessment installments and other funds pledged under the Indenture, The Listed Events which the City has agreed to report includes three items which have no application to the Bonds. There is no credit enhancement applicable to the Bonds, there are no credit or liquidity providers with respect to the Bonds, and the Bonds have not been assigned a rating. These items have been included in the list with respect to the Bonds solely to satisfy the requirements of the Rule, The failure of the City to comply with the Continuing Disclosure Certificate will not be considered an event of default under the Bond Indenture; however, any Owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under the Continuing Disclosure Certificate. The City has never failed to comply in all material respects with any previous undertaking with regard to the Rule to provide annual reports or notices of material events, To assist the Underwriter in complying with Rule 15c2-12(b)(5), the Developer will enter into a Continuing Disclosure Undertaking (the "Developer Disclosure Undertaking") covenanting to provide an Annual Report not later than April 1 of each year beginning April!, 2000. The Annual Report provided by the Developer is to contain the unaudited consolidated financial statements, if any, of the Developer and the additional financial and operating data outlined in Section 4 of the Developer Disclosure Undertaking attached in Appendix H. In addition to the information expressly required to be provided pursuant to the Developer Disclosure Undertaking, the Developer is also required to provide such further information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading, 598187.12\12245.0079 47 -- The Developer's obligations under the Developer Disclosure Undertaking will terminate upon the earliest to occur of: (a) the legal defeasance, prior redemption or payment in full of all the Bonds; (b) the date on which both the Developer and all affiliates of the Developer are no longer responsible for the payment of more than 20 percent of the annual Special Tax levy and all Developer Improvements (as defined in Appendix H) are complete; or (c) the date on which the Developer delivers to the City an opinion of nationally-recognized bond counsel to the effect that the continuing disclosure is no longer required under the Rule, The Developer has also agreed that if it sells or transfers ownership interest to any property in the District which will result in the transferee becoming responsible for the payment of 20 percent of the annual Special Tax levy in the fiscal year following such transfer, the Developer will cause any such transferee to enter into a disclosure agreement with terms and obligations substantially similar to the terms of the Developer Disclosure Undertaking, subject to early termination upon the circumstances described in Section 12 of the Developer Disclosure Undertaking attached hereto in Appendix H. LEGAL MATTERS Tax Exemption In the opinion of Brown, Diven, Hessell & Brewer LLP ("Bond Counsel"), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the "Code") and is exempt from State of California personal income taxes. Bond Counsel is of the further opinion that interest on the Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating federal corporate alternative minimum taxable income, A complete copy of the proposed form of opinion of Bond Counsel is set forth in Appendix B hereto, The difference (if any) between the issue price of any maturity of the Bonds and the amount to be paid at maturity of such Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Bonds) constitutes "original issue discount," the accrual of which, to the extent properly allocable to each owner thereof, is treated as interest on the Bonds which is excluded from gross income for federal income tax purposes and State of California personal income taxes, For this purpose, the issue price of a particular maturity of the Bonds is the first price at which a substantial amount of such maturity of the Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers), The original issue discount with respect to any maturity of the Bonds accrues daily over the term to maturity of such Bonds on the basis of a constant interest rate compounded semiannually (with straight-line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such Bonds to determine taxable gains or loss upon disposition (including sale, redemption, or payment on maturity) of such Bonds. Owners of the Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase such Bonds in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public. The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Bonds. The City has covenanted to comply with certain restrictions designed to insure that interest on the Bonds will not be included in federal gross income, Failure to comply with these covenants may result in interest on the Bonds being included in federal gross income, possibly from the date of original issuance of the Bonds, The opinion of Bond Counsel assumes compliance with these covenants, Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring (or not occurring) after the date of issuance of the Bonds may adversely affect the value of, or the tax status of interest on, the Bonds, 598187.12\22245.0079 48 -~_.._..~-_...- Further, no assurance can be given that pending or future legislation or amendments to the Code, if enacted into law, or any proposed legislation or amendments to the Code, will not adversely affect the value of, or the tax status of interest on, the Bonds, Prospective Bondholders are urged to consult their own tax advisors with respect to proposals to restructure the federal income tax. Certain requirements and procedures contained or referred to in the Bond Indenture, the Tax Certificate, and other relevant documents may be changed and certain actions (including, without limitation, defeasance of the Bonds) may be taken or omitted under the circumstances and subject to the tenns and conditions set forth in such documents, Bond Counsel expresses no opinion as to any Bond or the interest thereon if any such change occurs or action is taken or omitted upon the advice or approval of Bond Counsel other than itself, Although Bond Counsel is of the opinion that interest on the Bonds is excluded ¡¡-om gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may otherwise affect a bondholder's federal or state tax liability, The nature and extent of these other tax consequences will depend upon the particular tax status of the bondholder or the bondholder's other items of income or deduction, and Bond Counsel expresses no opinion regarding any such other tax consequences. Absence of Litigation At the time of delivery of and payment for the Bonds, the City will certify that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or regulatory agency, public board or body pending or threatened against the City affecting its existence, or the titles of its officers, or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Bond Indenture, or the collection or application of the assessments and interest thereon to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, the Bond Indenture, the agreement entered into between the City and the Underwriters for the sale of the Bonds (the "Bond Purchase Agreement"), or any other applicable agreements or any action of the City contemplated by any of said documents, or in any way contesting the completeness or accuracy of this Official Statement or any amendment or supplement hereto, or contesting the powers of the City or its authority with respect to the Bonds or any action of the City contemplated by any of said documents, nor, to the knowledge of the City, is there any basis therefor. Legal Opinion Certain legal matters incident to the issuance of the Bonds are subject to the approving legal opinion of Brown, Diven, Hessell & Brewer LLP, Solana Beach, California ("Bond Counsel"), A copy of the proposed fonn of opinion of Bond Counsel is set forth in Appendix B hereto. The opinion of Bond Counsel will be qualified as to the enforceability of certain of the proceedings by limitations imposed by bankruptcy, insolvency, moratoria and other similar laws affecting creditors' rights, heretofore or hereafter enacted, and by the exercise of judicial discretion in accordance with general principles of equity. Bond Counsel has reviewed the cover page of this Official Statement and the portions hereof under the captions "INTRODUCTION", "THE BONDS," "SECURITY FOR THE BONDS" (except the portion thereof entitled "Property Values"), LEGAL MATTERS-Tax Exemption" and in Appendix B, insofar as such portions purport to summarize certain provisions of the Bonds, the Bond Indenture, the legal procedures required for the authorization of the Bonds, and the opinion of Bond Counsel concerning the exclusion of interest on the Bonds from gross income, but Bond Counsel has not assisted in the preparation of or reviewed the remainder of this Official Statement, and accordingly Bond Counsel expresses no opinion as to the accuracy or sufficiency of any statements, material or financial infonnation contained herein, 598187.12\22245.0079 49 Certain legal matters will be passed upon for the City by the City Attorney and for the Underwriters by its counsel, Stradling Y occa Carlson & Rauth, a Professional Corporation, Newport Beach, California ("Stradling"). Although it serves as counsel to the Underwriters in connection with the issuance and sale of the Bonds, Stradling represents the City in connection with other financings, UNDERWRITING The Bonds are being purchased by Stone & Youngberg LLC and Merrill Lynch Capital Markets (collectively, the "Underwriters"). The Underwriters have agreed to purchase the Bonds at a purchase price of $ (being the principal amount of the Bonds, less original issue discount of $ and less an Underwriters' discount of $ ), The initial public offering prices of the Bonds may be changed from time to time by the Underwriters. The Bond Purchase Agreement between the City and the Underwriters provides that the Underwriters will purchase all the Bonds if any are purchased, and that the obligation to make such purchase is subject to certain terms and conditions set forth in the Bond Purchase Agreement, including, among others, the approval of certain legal matters by counsel. PROFESSIONAL FEES In connection with the issuance of the Bonds, compensation payable to the Financial Advisor, the Underwriters, Bond Counsel, and counsel to the Underwriters is in whole or in part contingent upon the issuance of the Bonds, MISCELLANEOUS All of the preceding summaries of the Bond Indenture, other applicable legislation, agreements and other documents are made subject to the provisions of such documents respectively, and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such documents on file with the City for further information in connection therewith, This Official Statement does not constitute a contract with the purchasers of the Bonds, Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized, Included herein are brief summaries of certain documents and reports; these summaries do not purport to be complete or definitive; and reference is made to such documents and reports for full and complete statements of the contents thereof. Copies of such documents and reports are available for inspection at the office of the Director of Finance, City of Chula Vista, The execution and delivery of the Official Statement by the City have been duly authorized by the City Council of the City of Chula Vista on behalf of the Assessment District CITY OF CHULA VISTA By: City Manager 598187.12\22245.0079 50 APPENDIX A INFORMATION CONCERNING THE CITY OF CHULA VISTA This appendix sets forth general information about the City including information with respect to its finances. This information is included only for general background purposes. It is not intended to suggest that the Bonds are payable from any source other than the assessments and certain funds and accounls created by the Bond Indenture. General Description The City of Chula Vista ("Chula Vista") is located on San Diego Bay in Southern California, 8 miles south of San Diego and 7 miles north of the Mexico border, in the area generally known as "South Bay", City limits cover approximately 50 square miles. Chula Vista was incorporated March 17, 1911, and became a chartered city in 1949, Chula Vista operates under a Council-Manager form of government and provides the following services: public safety, community services, engineering services, planning services, public works, general administrative services and capital improvements, With a January 1998 estimated population of 162,000, Chula Vista is the second largest city in San Diego County. Population The historic population ofChula Vista, San Diego County and the State is shown below, City of Chula Vista, County of San Diego and State of California Population Estimates Year City of Chula Vista County of San Diego State of California 1994 146,500 2,638,500 31,661,000 1995 149,800 2,658,600 31,910,000 1996 153,200 2,690,300 32,231,000 1997 156,401 2,729,054 32,670,019 1998 162,047 2,794,785 33,251,809 Source: California State Department of Finance Building Activity During calendar year 1997, of the total value of building permits issued, approximately 79% was attributed to new residential construction, 11 % to new industrial/commercial construction, 1 % to additions/alterations/conversions and 9% to other construction, Building activity for the past five calendar years for Chula Vista is shown in the following table, 598187.12\22245.0079 A-I City of Ch ula Vista Total Building Permit and Valuations Calendar Year Building Permits Issued Valuation 1993 2,941 $114,473,213 1994 3,452 212,784,343 1995 3,011 144,713,014 1996 948 153,086,000 1997 1050 163,390,000 Source: Economic Sciences Corporation, California Building Permit Activity Employment San Diego Metropolitan Statistical Area ("MSA"), which includes Chuta Vista, civilian labor force and wage and salary employment figures for calendar years 1993 through 1997 are shown in the following table. These figures are county-wide statistics and may not necessarily accurately reflect employment trends in Chula Vista, San Diego MSA Civilian Labor Force, Employment and Unemployment Annual Averages, March 1997 Benchmark 1993 1994 1995 1996 1997 Civilian Labor Force(l) 1,226,300 1,235,100 1,226,200 1,245,700 1,281,600 Employment 1,131,600 1,148,200 1,147,800 1,180,100 1,227,200 Unemployment 94,700 86,900 78,400 65,600 54,400 Unemployment Rate 7.7% 7.0% 6.4% 5.3% 4.2% Wage & Salary Employment(2) Total, All Industries 957,900 965,800 989,300 1,017,200 ] ,060,100 Agricultural, Forestry, and 10,700 10,600 10,700 11,000 10,800 Fisheries Non-Agricultural 947,200 955,300 978,600 1,006,200 1,049,300 Mining 400 400 300 400 400 Construction 39,500 40,600 43,600 45,500 52,500 Manufacturing 117,500 114,100 114,900 117,500 122,100 Transportation and public 35,700 36,400 37,400 38,300 41,100 utilities Wholesale trade 39,700 42,000 42,900 42,700 44,500 Retail trade 185,800 185,100 186,600 193,200 196,600 Finance, insurance and real 62,200 59,100 55,800 57,400 60,900 estate Services 287,300 296,100 310,900 321,200 338,800 Government 179,100 181,500 186,100 190,100 192,500 ,n Based on place of residence. '" Based on place of work. Source: California Employment Development Department. 598187.12\22245.0079 A-2 Largest Employers City of Chula Vista Major Private Sector Employers - 1997 The ten largest private sector employers in Chula Vista as of 1997, along with the number of employees, are shown below, Name Number of Emplovees BF Goodrich Aerospace 2,344 Sharp Chula Vista Medical Center 883 Scripp's Memorial Hospital 660 American Fashion Inc, 388 Wal-Mart 349 Costco 336 United Parcel Service 311 Sears Roebuck & Company 300 Target 244 Lucky Stores 226 Source: City ofChula Vista Labor Relations Chula Vista currently employs 785 full-time and 240 to 360 part-time employees. 677 of such employees are represented by four formal labor organizations as shown below. Chula Vista has 127 executive, managerial and confidential employees who are not represented by any formal bargaining unit Chula Vista participates in joint powers agreements through the San Diego County Risk Management Authority and San Diego Cities Liability Management Authority to provide worker's compensation and general liability insurance to employees. CITY OF CHULA VISTA Labor Relations Labor OrlZanization Number of Emplovees Contract Expiration Date Western Council of Engineers 25 6/30/01 Police Officers Association 181 6/30/03 International Assoc, of Fire Fighters 84 6/30/03 Chula Vista Employees Association 387 6/30/01 Source: City ofChuJa Vista Retirement Programs Chula Vista contracts with the Public Employees Retirement System (PERS) of the State of California, The retirement plan provides simultaneous coverage of eligible employees with PERS. The plan provides for basic retirement benefits for service which are based on the years of service, age and the average monthly qualifYing wages during the last 12 month period of employment The plan also provides for cost-of-living adjustments after retirement 598187.12\22245.0079 A-3 The system is funded by a combination of employer and employee contributions, Chula Vista pays employer and employee costs for all full time employees. $6.5 million has been budgeted for Chula Vista's 1998-99 contribution to the retirement plan, Sales Taxes The following table shows taxable transactions in Chula Vista by type of business during calendar years 1994 through July 1997. As indicated below, total retail sales for Chula Vista in 1996 increased by approximately 63% over the 1995 level and in 1997 increased by approximately 5.6% over the 1996 level. A summary of historic taxable transactions for Chula Vista is shown in the following table, CITY OF CHULA VISTA Taxable Transactions (Dollars in thousands) Retail Stores Total Outlets Calendar Year Permits on Julv 1 Taxable Transactions Permits on Julv I Taxable Transactions 1994 1,454 974,901 3,236 1,102,748 1995 1,553 928,341 3,364 1,063,911 1996 1,594 987,211 3,401 1,133,092 1997 1,643 1,042,195 3,507 1,213,423 Source: State Board of Equalization Property Taxes The following table summarizes a five year history of assessed valuations for Chula Vista, CITY OF CHULA VISTA Assessed Valuations Fiscal Years 1993-94 through 1997-98 Year Secured Unsecured Total 1994-95 5,926,917,796 212,443,544 6,139,361,340 1995-96 6,137,907,854 440,896,677 6,578,804,531 1996-97 6,447,133,021 236,496,503 6,683,629,524 1997-98 6,449,700,069 413,899,982 6,863,600,051 1998-99 7,009,461,703 245,602,993 7,255,064,696 Source: City ofChula Vista Counties levy and collect all ad valorem property taxes for property falling within the county's taxing boundaries, and apportion by statutory formula the tax revenue collected to all taxing entities therein as they are due. Largest Taxpayers The following tables list the largest taxpayers within Chula Vista's boundaries in terms of their 1998- 99 secured assessed valuations, 598187.12\22245.0079 A-4 CITY OF CHULA VISTA Largest Taxpayers Fiscal Year 1998-99 ] 998-99 %of Prooertv Owner Land Use Assessed Valuation Total (] ) ROHR Corporation Manufacturing $177,841,261 2.45% HO Retail Properties Shopping Mall 57,243,502 .78 Scripps Health Medical 44,217,361 .60 The Price Co, Retail 43,023,686 .59 Otay Project LLC Undeveloped 35,956,000 .49 R&B Executive Investments Apartments 28,019,]86 38 Granite Bonita Glen Apartments 25,557,663 35 BRE Properties ]nc, Apartments 25,330,984 34 Eucalyptus Grove Holdings Apartments 22,928,503 31 Pacific Bay Homes Undeveloped 20,280,351 ,27 UDC Homes Undeveloped 20,165,166 .27 Total $500,563,663 6.89% Source: City of Chula Vista Education Public educational instruction from Kindergarten through high school is provided by the Chula Vista Elementary School District and Sweetwater Union High School District. These districts administer twenty-six elementary schools, nine junior high schools and eight senior high schools, Southwestern College, a two year Community College, has an enrollment of more than 15,000. There are also four adult education schools and twelve private schools, There are seven universities or colleges within 30 minutes commuting distance from Chula Vista in the San Diego Metropolitan Area. The City has proposed a University of California campus in Chula Vista, to be located on a 400 acre site adjoining the Olympic Training Center. Community Facilities There are two acute-care hospitals, two psychiatric hospitals and three convalescent hospitals, and more than 400 medical doctors and allied professionals in Chula Vista. There are two daily, one weekly and one semi-weekly newspapers published and circulated in the City, The City has one main public library and two branch libraries, Recreational facilities within or near the City include twenty-four parks, four community centers, six "tot lots," two ballfields, twenty-eight tennis courts, three golf courses, four municipal swimming pools, two gymnasiums and boat launching facilities. The City bayfront area contains a marina which houses 552 boats and miles of public beaches. The City also provides many trails for bicycling, hiking and jogging. The City is also the home of the United States Olympic Training Center. This is the third such training center in the nation and the only year round training facility, The center is located on a 150-acre site donated by Eastlake Development Company adjacent to the Otay Lake reservoir, The City has more than sixty churches and nearly 100 service, fraternal and civic organizations. 598187.12\22245.0079 A-5 Transportation U.S, Highways 5 (along the coast) and 805 (inland) provide full freeway access from the City north to San Diego and south to the Mexican boarder. Commuter rail service is provided by the San Diego Trolley, a light rail system started in 1981 and eleven bus routes coving the City, Daily bus connections serve the City, and Southern Pacific Railway and San Diego's Lindbergh International Airport are fifteen minutes to the north of the City, Utilities Electric power and natural gas are provided by San Diego Gas and Electric Company. Pacific Bell Telephone Company serves the area. Otay Water District and Sweetwater Water District provide water service and the City provides sewer service, 598187.12\22245.0079 A-6 APPENDIX B CITY OF CHULA VISTA ASSESSMENT DISTRICT NO, 97-2 (OTA Y RANCH SPA ONE) LIMITED OBLIGA nON IMPROVEMENT BONDS (the "Bonds") In our capacity as bond counsel to the CITY OF CHULA VISTA, CALIFORNIA (the "City"), we have examined the record of the proceedings of the City Council of the City for the levy of special assessments and authorization and issuance of the Bonds in the aggregate principal amount of $ upon unpaid assessments in what is known and designated as ASSESSMENT DISTRICT NO, 97-2 (OT A Y RANCH SPA ONE), The proceedings were taken pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 of the Streets and Highways Code of the State of California, with the Bonds issued pursuant to the provisions of the Improvement Bond Act of 1915, being Division 10 of said Code. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation, We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds (except to the extent, if any, stated in the Official Statement) and we express no opinion relating thereto (excepting only the matters set forth in our opinion in the Official Statement), From our examination, we are of the opinion that the proceedings have been taken in accordance with the laws, court decisions and Constitution of the State of California, and in compliance with the provisions of the Municipal1mprovement Act of 1913, that the Bonds are legal, valid and binding limited obligations of the City, enforceable in accordance with their tenns, and that the payment of each of the Bonds is secured by valid assessment liens upon certain lands as described in said proceedings. The rights of the owners of the Bonds and the enforceability thereof may be subject to bankruptcy, insolvency, reorganization and other similar laws affecting creditors' rights, to equitable principles relating to or limiting creditors' rights and to limitations on remedies applicable to governmental entities. In our opinion, the interest on the Bonds is excluded ¡¡-om gross income for federal income tax purposes, is exempt from personal income taxation by the State of California, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed upon individuals and corporations; it should be noted, however, that for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in detennining adjusted current earnings, This opinion presumes that the City complies with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal or state income tax purposes, The City has covenanted to comply with each such requirement Failure to comply with such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal or state tax consequences pertaining to the Bonds. Respectfully submitted, BROWN DIVEN HESSELL & BREWER LLP 598187.4\22245,0079 B-1 598187.12\22245.0079 u U ...J ...J ...J ...J 0 0 ~ ~ ~ ~ 01) 01) 0 0 È't :¡; :¡; õ õ u ~ 0 :I: :I: ...J "-~ ...J ~o '" '" § § Uu uuuuuu ~ ~ ....J ~ .~...J ...J...J...J...J...J"';¡ ._ ._ 2...J ...J...J...J....J...J....J ::::~ ~~ø...t) üüt)t)õõ ~~ ~o...>-o 0001,)00 « ""d <: -0 Æ '8' '2' '8' '2' '2' '8' '8' --a~-...a o...o<o...o...o...o...Q..ø.. ~"OoO::¡"'O..r::: 0 ~ã5~ã:;ÈfiÈÈÈÈÈÈ oõõuOõõ,}50uOOOOOO 0 ~ ~ 0 o'<tI.OO\r---o '" r- N - '" Ir') "'It 0\ r<"'¡ N €'I r- 0 '" Ñ N o .~ -.:to'lONI.O...... 0"'''' 0 Ò~ "'ItV)I.O--o::r _ N r- N '" MOo\M-1.Ó or--i.,.; ~ ,..: ~ .......... ............ õ3 > 00 ~ '" MI.OO-O'IO r- ... 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I I I I I I , , I I I I I ~ NNNNNNNNNNNN-N ~ " o::t'o:t"lto::to::to::to::to::t'o:t'o::to::to::to::to::t ,0 < :a \0\0\0\0\0\0\01.0\0\0\0\01.01.0 S 0- ~ Z õ' E3 ~ C- OO ~ 01) N ;:¡ < 0 " -NMo::tV)~r.hOOr--Ñ-O .... .~ ~ 0 oo ~~~~~~O~~~~r.h~ :§ ~ '" ~ ö: s 0 J; > 0 ,0 0 ,,; 0 ~ .. oo f-- N N !OJ S t N ~_,o _NM";-V')\Ot"-OOO'l~:::~ '" ~ 0 S ~ ~ ~ ;::s ~ < z '" ~ APPENDIX D CITY'S CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of Chula Vista (the "City") in connection with the issuance of its City of Chula Vista, Assessment District No. 97-2 Limited Obligation Improvement Bonds in the aggregate principal amount of $ (the "Bonds"), The Bonds are being issued pursuant to a resolution of the City Council of the City adopted on , 1999 and that certain Bond Indenture dated as of , 1999 (the "Bond Indenture"), The City covenants and agrees as follows: SECTION L Purpose of the Disclosure Certificate, This Disclosure Certificate is being executed and delivered by the City for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with Rule 15c2-12(b )(5) of the Securities Exchange Commission, SECTION 2, Definitions, In addition to the definitions set forth in the Bond Indenture or parenthetically defined herein, which apply to any capitalized tenns used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate, "Dissemination Agent" shall mean the or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation, "Listed Events" shall mean any of the events listed in Section 5 of this Disclosure Certificate, "National Repository" shall mean any Nationally Recognized Municipal Securities Infonnation Repository for purposes of the Rule, Currently, the following are National Repositories: Bloomberg Municipal Repository Bloomberg Business Park P.O, Box 840 Princeton, N,J, 08542 -0840 Phone: (609) 279-3225 Fax: (609) 279-5962 E-mail: Munis@Bloomberg,com Kenny Information Services, Inc. 65 Broadway - 16th Floor New York, NY 10006 Attn: Kenny Repository Service Phone: (212) 770-4595 Fax: (212) 797-7994 598187.12\22245.0079 0-1 Moody's NRMSIR Public Finance Information Center 99 Church Street New York, NY 10007-2796 (800) 339-6306 FAX (212) 553-1460 Contact: Claudette Stephenson (212) 553-0345 DPCData Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107 E-mail: nrmsir@dpcdata,com Thomson NRMSIR Attn: Municipal Disclosure 395 Hudson Street, 3d Floor New York, NY 10014 Phone: (212) 807-5001 OR (800) 689-8466 Fax: (212) 989-2078 E-mail: Disc1osure@Muller.com "Participating Underwriters" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with an offering of the Bonds, "Repository" shall mean each National Repository and each State Repository, "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time, "State Repository" shall mean any public or private repository or entity designated by the State of California as a state information depository for the purpose of the Rule, As of the date of this Disclosure Certificate, there is no State Repository, 598187.12\22245.0079 0-2 SECTION 3, Provision of Annual Reports. The City shall, or shall cause the Dissemination Agent to, not later than April 1 following the end of each of the City's fiscal years, commencing April I, 2000, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than five (5) business days prior to said date, the City shall provide the Annual Report to the Dissemination Agent (if other than the City), The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the City may be submitted separately from the balance of the Annual Report. If the City is unable to provide to the Repositories an Annual Report by the date specified in the preceding paragraph, the City shall send a notice to the Municipal Securities Rulemaking Board ("MSRB") and to the State Repository, if any, in substantially the form attached as Exhibit "A," The Dissemination Agent shall: (a) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and each State Repository, if any; and (b) (if the Dissemination Agent is other than the City) file a report with the City certifYing the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Reports, The City's Annual Report shall contain or incorporate by reference the following: (a) A copy of its annual financial statements prepared in accordance with generally accepted accounting principles audited by a firm of certified public accountants (If audited annual financial statements are not available by the time specified in the first paragraph of Section 3 above, unaudited financial statements will be provided as part of the Annual Report and audited financial statements will be provided when and if available,); and (b) An update of the information identified in Exhibit "Boo hereto. Any or all of the items listed above may be incorporated by reference ITom other documents, including official statements of debt issues of the City or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission, If the document incorporated by reference is a final official statement, it must be available from the MSRB, The City shall clearly identify each such document incorporated by reference. SECTION 5, Reporting of Significant Events. The City shall provide or cause to be provided, in a timely manner, to the MSRB and the State Repository, if any, notice of any of the following events with respect to the Bonds, if such event is material: (a) Principal and interest payment delinquencies; (b) Non-payment related defaults; (c) Unscheduled draws on debt service reserves reflecting financial difficulties; 598187.12\22245.0079 D-3 (d) Unscheduled draws on credit enhancements reflecting financial difficulties; (e) Substitution of credit or liquidity providers, or their failure to perfonn; (f) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (g) Modifications to rights of bondholders; (h) Bond calls; (i) Defeasances; OJ Release, substitution or sale of property securing repayment of the Bonds; or (k) Rating changes. SECTION 6. Tennination of Reporting Obligation, The City's obligations under this Disclosure Certificate shall tenninate upon the earliest of: (i) the date oflegal defeasance, prior redemption or payment in full of all of the Bonds; (ii) the date that the City shall no longer constitute an "obligated person" within the meaning of the Rule; or (iii) the date on which those portions of the Rule which require this written undertaking are held to be invalid by a court of competent jurisdiction in a non-appealable action, have been repealed retroactively or otherwise do not apply to the Bonds, SECTION 7. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist the City in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. SECTION 8. Amendment: Waiver, Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure certificate may be waived, without the consent of the holders of the Bonds, if such amendment or waiver does not, in and of itself, cause the undertakings herein (or action of any Participating Underwriters in reliance on the undertakings herein) to violate the Rule, but taking into account any subsequent change in or official interpretation of the Rule, The City will provide notice of such amendment or waiver to the Repository. SECTION 9. Additional Infonnation. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other infonnation, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other infonnation in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any infonnation in any Annual Report or notice of a Listed Event in addition to what which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such infonnation or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION lO. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific perfonnance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default under the Bond Indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel perfonnance, 598187.12\22245.0079 D-4 SECTION 11. Beneficiaries, This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Participating Underwriters, the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. DATE: ,1999 CITY OF CHULA VISTA By: 598187.12\22245.0079 0-5 EXHIBIT "A" NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of City: City of Chula Vista Name of Bond Issue: City ofChula Vista, Assessment District No, 97-2 Limited Obligation Improvement Bonds in the aggregate principal amount of $ Date ofIssuance: ,1999 NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the above- named Bonds as required the Continuing Disclosure Certificate executed on ,1999 by the City. The City anticipates that the Annual Report will be filed by Dated: CITY OF CHULA VISTA By: Its: 598187.12\22245.0079 D-6 EXHIBIT "B" 1. The principal amount of Bonds Outstanding as of the September 30 next preceding the Annual Report Date, the aggregate assessed value (as shown on the assessment roll of the County Assessor last equalized prior to such September 30) of the property within the Assessment District with unpaid assessments and for such parcel with an unpaid assessment: the Assessor's Parcel Number, the name of the owner, the land value, the building value and the total value (all as shown on the aforesaid assessment roll). 2. The amount on deposit in the Reserve Fund and a statement of the Reserve Requirement, as of the September 30 next preceding the Annual Report Date, 3. The percentage of the amount of the assessment installments levied within the Assessment District for the preceding fiscal year that remains unpaid as of the September 30 next preceding the Annual Report Date, the number of parcels within the Assessment District delinquent in payment of assessment installments as of such September 30, the amount of each delinquency, the length of time delinquent and the date on which foreclosure was commenced, or similar infonnation pertaining to delinquencies deemed appropriate by the City; provided, however, that parcels with delinquencies of $2,500 or less may be grouped together, 4, The status of all foreclosure proceedings pending as of the September 30 next preceding the Annual Report Date and a summary of the results of any foreclosure sales occurring in the one-year period ending on such September 30. 5, A land ownership summary listing property owners whose properties are responsible for more than 5% of the unpaid assessments within the Assessment District, as shown on the assessment roll of the County Assessor last equalized prior to the September 30 next preceding the Annual Report Date, a summary of the assessments levied on the property within the Assessment District owned by such property owners, the assessed value of such property, as shown on such assessment roll, and a statement of assessed value to lien ratios therefor, 6, A statement of direct and overlapping debt for the Assessment District, substantially similar to that provided in the table on page _ of the Official Statement; provided that such statement shall not be required if the "value-to-lien ratio" of the property within the Assessment District with unpaid assessments is not less than 20:1. "Value-to-lien ratio" means a fraction (i) the numerator of which is the aggregate assessed value (as shown on the assessment roll of the County Assessor last equalized prior to the September 30 next preceding the Annual Report Date) of the property within the Assessment District with unpaid assessments, and (ii) the denominator of which is the total principal amount of Bonds Outstanding as of such September 30, which fraction is (iii) reduced so that the denominator is I and (iv) expressed as the numerator "to" the denominator, 598187.12\22245.0079 0-7 APPENDIX E APPRAISAL REPORT 598187.12\22245.0079 E-I APPENDIX F INFORMATION CONCERNING THE DEPOSITORY TRUST COMPANY The information concerning DTC set forth herein has been supplied by The Depository Trust Company ("DTC"), and the City assumes no responsibility for the accuracy thereof. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. "Direct Participants" include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations, DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc" and the National Association of Securities Dealers, Inc, Access to the DTC system is also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"), The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of Bonds under the DTC system must be made by or though Direct Participants, which will receive credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond (a "Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners, Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued, To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name ofDTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership, DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which mayor may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers, Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to Cede & Co. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed, 598187.12\22245.0079 F-I Neither DTC nor Cede & Co. will consent or vote with respect to Bonds, Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy), Principal and interest payments on the Bonds will be made to DTC. DTC's practice is to credit Direct Participants' accounts on the payment date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on a payment date, Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not ofDTC, the Fiscal Agent, or the City, subject to any statutory or regulatory requirements as may be in effect ITom time to time. Payment of principal and interest to DTC is the responsibility of the Fiscal Agent, disbursement of such payments to Direct Participants shaH be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shaH be the responsibility of Direct and Indirect Participants, DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving notice to the City or the Fiscal Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bonds are required to be printed and delivered, 598187.12\22245.0079 F-2 APPENDIX G SUMMARY OF MARKET ABSORPTION STUDY 598187.12\22245.0079 0-1 APPENDIX H $12,240,000· CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 (OTAY RANCH, VILLAGE ONE) LIMITED OBLIGATION IMPROVEMENT BONDS CONTINUING DISCLOSURE UNDERTAKING This Continuing Disclosure Undertaking (the "Disclosure Undertaking") dated as of , 1999 is executed and delivered by Otay Project, LLC, a California Limited Liability Company, and Otay Project LP" a California Limited Partnership (collectively, the "Developer"), in connection with the execution and delivery by the City of Chula Vista (the "City") of $12,240,000' aggregate principal amount of its Assessment District No. 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds (the "Bonds"), The Bonds are being executed and delivered pursuant to a Bond Indenture dated as of , 1999 by and between the City and u.s. Bank Trust National Association, as Fiscal Agent (the "Bond Indenture"). The Developer covenants and agrees as follows: SECTION L PUrPose ofthe Disclosure Undertaking, This Disclosure Undertaking is being executed and delivered by the Developer for the benefit of the Bondowners and Beneficial Owners and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2-12(b )(5), Pursuant to this Disclosure Undertaking, the Developer agrees to provide the infonnation required to be provided by the Developer under the Rule at the time and in the manner required by the Rule, This Disclosure Undertaking does not address additional undertakings, if any, by or with respect to persons other than the Developer who may be considered obligated persons or purposes of the Rule, which additional undertakings, if any, may be required for the Participating Underwriter to comply with the Rule. SECTION 2. Definitions. In addition to the definitions set forth in the Bond Indenture, which apply to any capitalized tenn used in this Disclosure Undertaking unless otherwise defined in this Section, the following capitalized tenns shall have the following meanings: "Affiliate" shall mean, with respect to any Person, (a) each Person that, directly or indirectly, owns or controls, whether beneficially or as a Fiscal Agent, guardian or other fiduciary, twenty-five percent (25%) or more of any class of Equity Securities of such Person, (b) each Person that controls, is controlled by or is under common control with such Person or any Affiliate of such Person or (c) each of such Person's executive officers, directors, joint venturers and general partners; provided, however, that in no case shall the City be deemed to be an Affiliate of the Developer for purposes of this Undertaking, For the purpose of this definition, "control" of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract or otherwise. "Annual Report" shall mean any Annual Report provided by the Developer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Undertaking. "Beneficial Owner" shall mean any person which has or shares the power, directly or indirectly, to make investment decisions concerning ownership of the Bonds (including persons holding Bonds through nominees, depositories or other intennediaries). 598187.12\22245.0079 "Disclosure Representative" shall mean the President of one of the General Partners of the Developer's Managing Member or his or her designee acting on behalf of the Developer, or such other officer or employee as the Developer shall designate in writing to the Dissemination Agent from time to time. "Dissemination Agent" shall mean U.S, Bank Trust National Association, acting in its capacity as Dissemination Agent hereunder, or any successor Dissemination Agent designated in writing by the Developer and which has filed with the Developer and the City a written acceptance of such designation, "District" shall mean Assessment District No, 97-2 (Otay Ranch, Village One) of the City of Chula Vista, "Equity Securities" of any Person shall mean (a) all common stock, preferred stock, participations, shares, general partnership interests or other equity interests in and of such person (regardless of how designated and whether or not voting or non-voting) and (b) all warrants, options and other rights to acquire any of the foregoing, "Fiscal Year" shall mean the period beginning on July I of each year and ending on the next succeeding June 30. "Government Authority" shall mean any national, state or local government, any political subdivision thereof, any department, agency, authority or bureau of any of the foregoing, or any other Person exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Undertaking, "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule, The National Repositories currently approved by the Securities Exchange Commission are set forth in Exhibit B. "Official Statement" shall mean the Official Statement, dated September 19,1997, relating to the Bonds, "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with the offering of the Bonds, "Person" shall mean any natural person, corporation, partnership, firm, association, Government Authority or any other Person whether acting in an individual fiduciary, or other capacity. "Repository" shall mean each National Repository and the State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of California. "State Repository" shall mean any public or private repository or entity designed by the State as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission, As of the date of this Disclosure Undertaking, there is no State Repository. 598187.12\22245.0079 SECTION 3, Provision of Annual Reoorts, (a) The Developer shaH, or shaH cause the Dissemination Agent to, not later than February I of each year, commencing February 1,2000, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Undertaking, The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Undertaking provided that the audited financial statements, if any, of the Developer may be submitted separately from the balance of the Annual Report and later than the date required for the filing of the Annual Report if they are not available by that date, The Developer undertakes to determine whether the City's fiscal year has changed in any year, (b) Not later than fifteen (15) Business Days prior to the date specified in subsection (a) for providing the Annual Report to Repositories, the Developer shaH provide the Annual Report to the Dissemination Agent or shaH provide notification to the Dissemination Agent that the Developer is preparing, or causing to be prepared, the Annual Report and the date which the Annual Report is expected to be available, Ifby such date, the Dissemination Agent has not received a copy of the Annual Report or notification as described in the preceding sentence, the Dissemination Agent shaH contact the Developer to determine if the Developer is in compliance with the first sentence of this subsection (b). (c) If the Dissemination Agent is unable to provide an Annual Report to Repositories by the date required in subsection (a) or to verify that an Annual Report has been provided to Repositories by the date required in subsection (a), the Dissemination Agent shaH send a notice to each Repository in substantially the form attached as Exhibit A. (d) The Developer shaH, or shaH cause the Dissemination Agent to: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and the State Repository, if any; and (ii) file a report with the Developer and the City certifying that the Annual Report has been provided pursuant to this Disclosure Undertaking, stating the date it was provided and listing aH the Repositories to which it was provided, SECTION 4, Content of Annual Reoort. The Developer's Annual Report shaH contain or include by reference the foHowing information with respect to the fiscal year immediately preceding the filing of the Annual Report: a, An update to the sections in the Official Statement entitled "THE OTA Y RANCH PROJECT," other than under the captions "Estimated Direct and Overlapping Indebtedness," including an update of the tables therein and a discussion of the sources of funds to finance the development and whether any material defaults exist under any loan arrangement related to the financing of the development b, A summary of development activity within the District for the preceding Fiscal Year of the District including the number of parcels for which building permits or certificates of occupancy have been issued, the number of parcels for which sales have closed, and land or lot sales including the amount of land or lots sold, the sales 598187.12\22245.0079 ---- price and the name of the purchaser, as well as the number of units sold and the number of escrows closed in the District. c, Status of any major governmentally-imposed preconditions for commencement or continuation of development of the parcels owned by the Developer or its Affiliates within the District. d, Status of completion of the development and any major legislative, administrative and judicial challenges known to the Developer to or affecting the construction of the development or the time for construction of any public or private improvements to be made by the Developer or any Affiliate within the District other than the public improvements described in (e) below (the "Developer Improvements"), e, Status of completion of the development and any major legislative, administrative and judicial challenges known to the Developer to or affecting the construction of the public improvements to be constructed with proceeds of the Bonds (the "District Improvements"). f, Any significant amendments to land use entitlements with respect to parcels owned by the Developer or its Affiliates that are known to the Developer, including an update of the total acres subject to the levy of Assessments if the amendment affects the total number of acres subject to the levy of the Assessments, g, Until such time as the Developer and its Affiliates own land within the District which is responsible for less than 20% of the annual Special Tax levy and all Developer Improvements are complete, unaudited financial statements of the Developer and, if prepared, audited financial statements of each of such entities for its most recently completed fiscal year (which currently ends on each December 31), prepared in accordance with generally accepted accounting principles as promulgated to apply to private entities from time to time by the Financial Accounting Standards Board, If the Developer has audited financial statements prepared and the audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements for the preceding year, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available, The Developer has not in the past prepared audited financial statements and does not expect to have audited financial statements prepared in the future. The Developer is not by this Disclosure Undertaking agreeing to cause audited financial statements to be prepared in the future. In the event that as a result of subsequent amendment of the Rule, interpretive releases, no- action letters or other official guidance from the Securities and Exchange Commission or its staff, the information required to satisfy the Rule shall differ from the information described above, the Developer shall provide to the Dissemination Agent such other information as is available to the Developer and not otherwise readily available to the City, Any and all of the items listed above may be included by specific reference to other documents, including official statements of debt issues which have been submitted to each of the Repositories or the Securities and Exchange Commission, If the document included by reference is a final official 598187.12\22245.0079 statement, it must be available from the Municipal Securities Rulemaking Board, The Developer shall clearly identify each such other document so included by reference. SECTION 5, Reporting of Significant Events, (a) Pursuant to the provisions of this Section 5, the Developer shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material under clauses (b) and (c): L Failure to pay any real property taxes, special taxes or assessments (including any assessment installment) levied within the District on a parcel owned by the Developer or any Affiliate; 2, Damage to or destruction of any of the Developer Improvements or the District Improvements which has a material adverse effect on the value of the parcels owned by the Developer or any Affiliate; 3. Material default by a member under the limited liability agreement of the Developer; 4, Material default by the Developer or any Affiliate on any loan with respect to the construction or permanent financing of the Developer Improvements; 5, Material default by the Developer or any Affiliate on any loan secured by property within the District owned by the Developer or any Affiliate; 6, Payment default by the Developer or any Affiliate on any loan of the Developer or any Affiliate (whether or not such loan is secured by property within the District); 7, The filing of any proceedings with respect to the Developer or any Affiliate, in which the Developer or any Affiliate, may be adjudicated as bankrupt or discharged from any or all of their respective debts or obligations or granted an extension of time to pay debts or a reorganization or readjustment of debts; and 8, The filing of any lawsuit with claim for damages in excess of $250,000 against the Developer which may adversely affect the completion of the District Improvements, the Developer Improvements or the development of parcels owned by the Developer or its Affiliates within the District or litigation which would materially adversely affect the financial condition of the Developer. (b) Whenever the Developer obtains knowledge of the occurrence of a Listed Event, the Developer shall as soon as possible determine if such event would be material under applicable federal securities laws. (c) If the Developer determines that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the Developer shall promptly file a notice of such occurrence with the Dissemination Agent which shall then distribute such notice to the Municipal Securities Rulemaking Board and each State Repository, with a copy to the City, 598187.12\22245.0079 SECTION 6, Termination of Reporting Obligation, The Developer's obligations under this Disclosure Undertaking shall terminate upon the following events: (a) the legal defeasance, prior redemption or payment in full of all of the Bonds, (b) if as of the date for filing the Annual Report the Developer and its Affiliates are responsible for less than twenty percent (20%) of the Assessments levied in the Fiscal Year for which the Annual Report is being prepared and the Developer has completed all Developer Improvements; or (c) upon the delivery by the Developer to the City of an opinion of nationally recognized bond counsel to the effect that the information required by this Disclosure Undertaking is no longer required, Such opinion shall be based on information publicly provided by the Securities and Exchange Commission or a private letter ruling obtained by the Developer or a private letter ruling obtained by a similar entity to the Developer, If such termination occurs prior to the final maturity of the Bonds, the Developer shall give notice of such termination in the same manner as for an Annual Report hereunder. SECTION 7. Dissemination Agent The Developer may ¡¡-om time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent If the Dissemination Agent is not the Developer, the Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the Developer pursuant to this Disclosure Undertaking, The Developer has initially appointed First Trust of California, National Association as the Dissemination Agent hereunder, SECTION 8. Amendment: Waiver, Notwithstanding any other provision of this Disclosure Undertaking, the Developer may amend this Disclosure Undertaking, and any provision of this Disclosure Undertaking may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5, it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the Bonds, or the type of business conducted; (b) This Disclosure Undertaking, as amended or taking into account such waiver, would, in the opinion of nationally recognized bond counsel addressed to the City, the Fiscal Agent and the Participating Underwriter, have complied with the requirements of the Rule at the time of the original issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; (c) The amendment or waiver either (i) is approved by the Bondowners in the same manner as provided in the Bond Indenture for amendments to the Bond Indenture with the consent of Bondowners, or (ii) does not, in the opinion of nationally recognized bond counsel addressed to the City and the Fiscal Agent, materially impair the interests of the Bondowners or Beneficial Owners of the Bonds; and (d) The Developer, or the Dissemination Agent, shall have delivered copies of the amendment and any opinions delivered under (b) and (c) above, 598187.12\22245.0079 In the event of any amendment or waiver of a provision of this Disclosure Undertaking, the Developer shall describe such amendment in the next Annual Report, and shall include, as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or, in the case of a change of accounting principles, on the presentation) of financial infonnation or operating data being presented by the Developer, In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements, (i) notice of such change shall be given to the Municipal Securities Rulemaking Board, the State Repository, if any, and the Repositories, and (ii) the Annual Report for the year in which the change is made should present a comparison (in narrative fonn and also, if feasible, in quantitative fonn) between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the fonner accounting principles. The comparison of financial data described in clause (ii) of the preceding sentence shall be provided at the time financial statements, if any, are filed under Section 4(g) hereof. SECTION 9, Additional Infonnation. Nothing in this Disclosure Undertaking shall be deemed to prevent the Developer from disseminating any other infonnation, using the means of dissemination set forth in this Disclosure Undertaking or any other means of communication, or including any other infonnation in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Undertaking. If the Developer chooses to include any infonnation in any Annual Report or notice of OCCurrence of a Listed Event in addition to that which is specifically required by this Disclosure Undertaking, the Developer shall have no obligation under this Disclosure Undertaking to update such infonnation or include it in any future Annual Report or notice of occurrence of a Listed Event The Developer acknowledges and understands that other state and federal laws, including but not limited to the Securities Act of 1933 and Rule IOb-5 promulgated under the Securities Exchange Act of 1934, may apply to the Developer, and that under some circumstances compliance with this Disclosure Undertaking, without additional disclosures or other action, may not fully discharge all duties and obligations of the Developer under such laws, SECTION 10, Default In the event of a failure of the Developer to comply with any provision of this Disclosure Undertaking, any Participating Underwriter or any Bondowner or Beneficial Owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific perfonnance by court order, to cause the Developer or the Dissemination Agent to comply with its obligations under this Disclosure Undertaking. A default under this Disclosure Undertaking shall not be deemed an Event of Default under the Bond Indenture, and the sole remedy under this Disclosure Undertaking in the event of any failure of the Developer to comply with this Disclosure Undertaking shall be an action to compel perfonnance, SECTION 11, Duties, Immunities and Liabilities of Dissemination Agent The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Undertaking and the Developer agrees to indemnify and save the Dissemination Agent, its officers, directors, employees and agents, hannless against any loss, expense and liabilities which they may incur arising out of or in the exercise or perfonnance of theirs powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct The Dissemination Agent shall not be deemed to be acting in any fiduciary capacity for the Developer, the Participating Underwriter, Bondowners or Beneficial Owners or any other party, The Dissemination Agent may rely and shall be protected in acting or refraining from acting upon a direction from the Developer or an opinion of nationally recognized bond counsel. The obligations of the Developer under this Section shall survive resignation or removal of the Dissemination Agent and payment of the Bonds, No person shall have any right to commence any action against the Dissemination Agent seeking any remedy other than to compel specific perfonnance of this Disclosure Undertaking. 598187.12\22245.0079 The Dissemination Agent will not, without the Developer's prior written consent, settle, compromise or consent to the entry of any judgment in any pending or threatened claim, action or proceeding in respect of which indemnification may be sought hereunder unless such settlement, compromise or consent includes an unconditional release of the Developer and its controlling persons from all liability arising out of such claim, action or proceedings, If a claim, action or proceeding is settled with the consent of the Developer or ifthere is a final judgment (other than a stipulated final judgment without the approval of the Developer) for the plaintiff in any such claim, action or proceeding, with or without the consent of the Developer, the Developer agrees to indemnify and hold harmless the Dissemination Agent to the extent described herein. SECTION 12. Reoorting Obligation of Develooer's Transferees: Covenant Running With Land, The Developer shall, in connection with any sale or transfer of ownership of land within the District which will result in the transferee (which tenn shall include any successors and assigns of the Developer) becoming responsible (i) for the payment of more than 20 percent of the Assessments levied on property within the District in the Fiscal Year following such transfer or (ii) for the construction and/or installation of some or all of the infrastructure needed to bring such sold or transferred land to finished lot condition, cause such transferee to enter into a disclosure agreement with tenns substantially similar to the tenns of this Disclosure Undertaking, whereby such transferee agrees to be bound by the obligations of the Developer under this Disclosure Undertaking as an additional obligated party. Additionally, the Developer shall, in connection with any sale or transfer of ownership of land within the District which will result in the transferee becoming responsible for the payment of more than 20 percent of the Assessments levied on property within the District in the Fiscal Year following such transfer, which sale or transfer occurs before such sold or transferred land is in finished lot condition, and the transferee is not responsible for the construction or installation of some or all of the infrastructure needed to bring such land to finished lot condition, cause such transferee to enter into a disclosure agreement with tenns substantially similar to the tenns of this Disclosure Undertaking, whereby such transferee agrees to be bound by the obligations of the Developer under this Disclosure Undertaking as an additional obligated party, provided that such transferee's obligations under such disclosure agreement shall tenninate upon the sold or transferred land reaching finished lot condition, The Developer agrees that its obligations pursuant to this Disclosure Undertaking shall be a covenant running with the land owned by the Developer within the District such that its obligations pursuant to this Disclosure Undertaking shall be binding upon all such transferees described above as though the obligations of the Developer and such transferees were expressly set forth in the grant deeds whereby such transferees obtain title to or an estate in such land from the Developer as provided in Sections 1460 through 1470 of the Civil Code of the State of California, A memorandum regarding the Developer's obligations under this Disclosure Undertaking and of the covenant running with the land created hereby shall be recorded in the Official Records in the office of the County Recorder of the County of San Diego, California, SECTION 13. Develooer is Indeoendent Contractor, In perfonning under this Disclosure Undertaking, it is understood that the Developer is an independent contractor and not an agent of the City. 598187.12\22245.0079 ._~--_. .--- ..----- SECTION 14, Beneficiaries. This Disclosure Undertaking shall inure solely to the benefit of the Developer, the City, the Dissemination Agent, the Participating Underwriter and Bondowners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity, OT A Y PROJECT, LLC, a California Limited Liability Company By: , Managing Member By: OT A Y PROJECT loP" a California Limited Partnership By: General Partner 598187.12\22245.0079 EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of the Issuer: City of Chula Vista Name of Bond Issue: Assessment District No, 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds Date ofIssuance: , 1999 NOTICE IS HEREBY GIVEN that Otay Project, LLC, a California limited liability company has not provided an Annual Report with respect to the above-named Bonds as required by the Continuing Disclosure Undertaking. [The Developer anticipates that such Annual Report wil1 be filed not later than , ,] Dated: [DISSEMINATION AGENT] By: cc: City of Chula Vista, California 598187.12\22245.0079 ANNUAL REPORT OF OTA Y PROJECT, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND OT A Y PROJECT L.P., A CALIFORNIA LIMITED PARTNERSHIP, RELATING TO $12,240,000 CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 (OTAY RANCH, VILLAGE ONE) LIMITED OBLIGATION IMPROVEMENT BONDS The following infonnation is being provided by Otay Project, LLC, a California limited liability company (the "Developer") pursuant to Section 4 of the Continuing Disclosure Undertaking, dated as of , 1999 (the "Disclosure Undertaking"), by the Developer, relating to the $12,240,000 City of Chula Vista Assessment District No, 97-2 (Otay Ranch, Village One) Limited Obligation Improvement Bonds (the "Bonds"), [ATTACH UNAUDITED, OR IF PREPARED AUDITED, FINANCIAL STATEMENTS AS REFERENCED IN SECTION 4(g) OF CONTINUING DISCLOSURE UNDERTAKING] 598187.12\22245.0079 ANY SUBSEQUENT STATEMENTS REGARDING THE BONDS OTHER THAN A STATEMENT MADE BY THE DEVELOPER IN AN OFFICIAL RELEASE OR SUBSEQUENT NOTICE OR ANNUAL REPORT, PUBLISHED IN A FINANCIAL NEWSPAPER OR GENERAL CIRCULATION AND/OR FILED WITH THE MSRB AND A NRMSIR, ARE NOT AUTHORIZED BY THE DEVELOPER. THE DEVELOPER SHALL NOT BE RESPONSIBLE FOR THE ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENT. THIS REPORT IS BEING FILI;D PURSUANT TO THE CONTINUING DISCLOSURE UNDERTAKING AND DOES NOT PURPOSE TO CONTAIN ALL MATERIAL INFORMATION WITH RESPECT TO THE BONDS OR THE FINANCIAL CONDITION OF THE DEVELOPER, THE DEVELOPER HAS NO OBLIGATION TO UPDATE THIS REPORT OTHER THAN AS EXPRESSLY PROVIDED IN THE CONTINUING DISCLOSURE UNDERTAKING, DATED: '-' OTA Y PROJECT, LLC, a California Limited Liability Company By: , Managing Member By: OT A Y PROJECT LP" a California Limited Partnership By: General Partner 598187.12\22245.0079 NOTICE OF SIGNIFICANT EVENT RELATING TO $12,240,000· CITY OF CHULA VISTA ASSESSMENT DISTRICT NO. 97-2 (OTA Y RANCH, VILLAGE ONE) LIMITED OBLIGATION IMPROVEMENT BONDS NOTICE IS HEREBY GIVEN pursuant to that certain Continuing Disclosure Undertaking, dated as of , 1999 (the "Continuing Disclosure Undertaking"), by the Otay Project, LLC, a California limited liability company, and Otay Project LP" a California Limited Partnership (collectively, the "Developer"), that the following significant event with respect to the above-captioned bonds (the "Bonds") has occurred: [Describe significant event here] ANY SUBSEQUENT STATEMENTS REGARDING THIS EVENT OR THE BONDS OTHER THAN STATEMENTS MADE BY THE DEVELOPER IN AN OFFICIAL RELEASE OR SUBSEQUENT NOTICE OR ANNUAL REPORT PUBLISHED IN A FINANCIAL NEWSPAPER OF GENERAL CIRCULATION AND/OR FILED WITH THE MSRB AND A NRMSIR ARE NOT AUTHORIZED BY THE DEVELOPER, THE DEVELOPER SHALL NOT BE RESPONSIBLE FOR THE ACCURACY, COMPLETENESS OR FAIRNESS OF ANY SUCH UNAUTHORIZED STATEMENT, THIS NOTICE IS BEING GIVEN PURSUANT TO THE CONTINUING DISCLOSURE UNDERTAKING AND DOES NOT PURPORT TO CONTAIN ALL MATERIAL INFORMATION WITH RESPECT TO THE BONDS OR THE FINANCIAL CONDITION OF THE DEVELOPER. THE DEVELOPER HAS NO OBLIGATION TO UPDATE THIS NOTICE OTHER THAN AS EXPRESSLY PROVIDED IN THE CONTINUING DISCLOSURE UNDERTAKING, Dated: OTA Y PROJECT, LLC, a California Limited Liability Company By: , Managing Member By: OTA Y PROJECT, LP" a California Limited Partnership By: General Partner 598187.12\22245.0079 -- -----" ------.----. EXHIBIT B Nationally Recognized Municipal Securities Infonnation Repositories approved by the Securities and Exchange Commission as of ,1999: Bloomberg Municipal Repository Bloomberg Business Park P,O. Box 840 Princeton, N,J, 08542 -0840 Phone: (609) 279-3225 Fax: (609) 279-5962 E-mail: Munis@Bloomberg,com Kenny Information Services, Inc. 65 Broadway - 16th Floor New York, NY 10006 Attn: Kenny Repository Service Phone: (212) 770-4595 Fax: (212) 797-7994 Moody's NRMSIR Public Finance Infonnation Center 99 Church Street New York, NY 10007-2796 (800) 339-6306 FAX (212) 553-1460 Contact: Claudette Stephenson (212) 553-0345 DPCData Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107 E-mail: nrmsir@dpcdata,com Thomson NRMSIR Attn: Municipal Disclosure 395 Hudson Street, 3d Floor New York, NY 10014 Phone: (212) 807-5001 OR (800) 689-8466 Fax: (212) 989-2078 E-mail: Disclosure@Muller,com 598187.12\22245.0079 COUNCIL AGENDA STATEMENT Item.ß Meeting Date 5/25/99 ITEM TITLE: Resolution I '1 t/ 7/ Approving agreements with Willdan Associates for acquisition services associated with Community Facilities District No, 97-3 and Assessment District No, 97-2 and authorize the mayor to execute the agreement. SUBMITTED BY: Director of Public Works REVIEWED BY: City ManageiJ12.-~ (4/5ths Vote: Yes_No-X) -- At the request of the developers, City Council approved the formation of Community Facilities District No, 97-3 and Assessment District No, 97-2 to finance the acquisition of public infrastructure serving Otay Ranch SPA One properties. Tonight, Council will consider the approval of two agreements with Willdan Associates to perfonn auditing services associated with the acquisition of public improvements financed by said districts, The consultant is proposing a fee of $31,727 for AD 97-2 and $26,497 for CFD 97-3, RECOMMENDATION: That Council approve the agreements with Willdan Associates and authorize the mayor to execute said agreements, BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: On February 10, 1998 City Council fonned Assessment District 97-2 within Village 1 of the Otay Ranch (see Exhibit A), Similarly, on November 24, 1998 City Council fonned Community Facilities District 97-3 (see Exhibit B) within the McMillin Otay Ranch project. These districts will use the City's capacity to sell bonds, secured by the land within the districts, to finance the acquisition of public infrastructure, Tonight, Council is also considering the authorization to sell bonds for AD 97-2, The bond sale for CFD 97-3 is anticipated for late June 1999, Willdan will be responsible for 1) auditing the expenditures of the developers, 2) detennining the eligibility and acquisition cost of the facilities, and 3) recommending the amount of the Transportation Development Impact Fee ("TDIF") credit for the TDIF projects included in the districts, Consultant Selection Process Staff reviewed the methods of accomplishing the work, including perfonning the activities in- house and using a consultant. Currently, the Engineering Division does not have the staff to perfonn the audit in the time frames required by the developers, Staff is working at capacity in perfonning standard land development duties (i.e" plan checking, formation of public financing districts) and these duties would be delayed if the audit is perfonned in house, Additional staff is not seen as cost-effective given the temporary nature of the work, Staff considers that hiring a consultant would, therefore, be more practical and cost-effective, liP--/ ----.----.-....-.-.-.--..,. Page 2, Item_ Meeting Date 5/25/99 Staff followed Section 2.56,110 of the Municipal Code in the consultant selection process, A three member selection committee was appointed by the City Manager, This committee included Civil Engineer Lombardo Detrinidad, Assistant Engineer Tom Adler, and Technician II Bob Beamon (Civil Engineer Elizabeth Chopp sat in on the interview process while Lombardo was on Jury Duty), A Request for Proposal (RFP) was prepared and sent to firms with expertise in this area, Additionally, a notice was published in the Chula Vista Star News, Seven firms responded to the request and submitted proposals, The firms were short listed base on the following criteria: · Similar Project Experience · Firm's capacity to perform work · Project Team Collective Rating · Firm's understanding of the project needs · Firm's justification of the cost proposal · Sub-consultant rating · Firm's budget, cost & schedule control The top five of the seven respondents firms were interviewed: Rankine Consultant Cost Proposal 1 Willdan Associates $ 50,967 2 Berryman & Henigar 74,990 3 Dick Jacobs & Associates 36,000 4 PDC 141,238 5 McGill, Martin, Self 123,760 6 Harris & Associates 264,701 7 Paul A, Moote and Associates 84,000 The interviewed firms were ranked in accordance with the following criteria: 1, Similar Project Experience (20 points) 2, Resources available to perform tasks on time and within budget (10 points) 3. Firm's justification of the cost proposal (20 points) 4, Project Team's collective rating (20 points) 5, Firm's understanding of project needs (10 points) 6. Sub-consultant's ranking (10 points) 7, Quality of presentation (20 points) 8, Response to interview questions (10 Points) 9. Firm's understanding of TDIF eligible improvements (10 points) 10, Reference Check (15 points) It),. 2 Page 3, Item_ Meeting Date 5/25/99 The committee selected Willdan Associates based on: 1) Greater relevant experience in auditing districts, 2) Price - second lowest fIrm, 3) Good presentation in the interview and correct responses to TDIF related questioning, 4) Strong project team, and 5) Excellent references. The third ranked firm, Dick Jacobs Associates, proposed a lower fee ($36,000) than Willdan, The Committee was concerned that its small size (a two-person company) may result in qualifIed personnel not being available as needed for processing the acquisition payments to the developers, It would be easier for Willdan, being a much larger company, to assign additional persons, if needed, to meet the tight acquisition time1ines, Both developers agree with staff recommendation, During negotiations with Willdan, the original (RFP) scope of work was modifIed to include audit services for "grading and storm drainage improvements" of AD 97-2, These improvements were not included in the original Willdan proposaL The consultant proposed an additional fee of $7,257 for auditing these improvements, This amount is included in the total fee of $31,727 for AD 97-2. The fInal form of the contract was also negotiated to be a phase fIxed fee to simplify the billing process and tie the compensation for the auditing services to the percentage of improvements acquired by the City, Proposed Contracts Since the consultant will be working on two distinct districts (with different developer and timeline for acquisition), staff recommends a separate contract for each district to keep the billing and funding sources apart, The contracts are substantially in the form of the City's standard two-party agreement They have been reviewed and approved as to form by the City Attorney, The contract for AD 97-2 includes auditing the following facilities with an estimated construction cost of approximately $9,5 million: · Paseo Ranchero - Telegraph Canyon Road to East Palomar Street · Telegraph Canyon Road - Right turn lane into Paseo Ranchero · East Palomar Street - Paseo Ranchero to eastern Boundary of Village One · Monarch Drive The contract for CFD 97-3 includes auditing the following facilities with an estimated construction cost of $ 6.5 million: · La Media Road - Telegraph Canyon Road to East Palomar Road · La Media crossing of Telegraph Canyon Channel · East Palomar Street - within the Otay Ranch McMillin Project · Master Utilities Loop · Santa Cora Avenue The proposed contracts contain provisions for breaking the acquisition up by road and construction phase to mirror the respective Acquisition/Financing agreement and to better accommodate the phased construction of the projects, However, CFD 97-3 has the potential to construct a number of facilities that are not covered by this audit due to the distant time1ine for these projects (La /tJ;;J ---.----------- Page 4, Item_ Meeting Date 5/25/99 these projects (La Media Road, Santa Cora South of East Palomar Road, Olympic Parkway, and the pedestrian bridge crossing of La Media Road). The audit for the Olympic Parkway improvements will be performed in conjunction with the audit for the proposed CFD 99- I. FISCAL IMPACT: None to the General Fund, The developers (McMillin and the Otay Ranch Company) have already deposited with the City the full amount of the consultant fee ($26,497 for CFD 97-3 and $31,727 for AD 97-2), The fee is eligible for reimbursement from bond proceeds, Attachments A, AD 97-2 Plat B. CFD 97-3 Plat h: \home\engineer\agenda \audit3 File# 0725-IO-CFD 97-3 I AD 97-2 /0-'1 -.-_.._--~_...- - -'--.--- /. I Ii .. ¡ F.3)<.HI8 (I ì ì ~~ I õ " ¡ : , ~ ~ ê¡ ~.:: J ~ I - : ~:~ - 'f103" . '~~~~- n < , , I . ~::;:&- 1\\ ~ ! 0, ., ~_..;-..,. ~ ! , -!!~ . ~-~--------~ ~'\ ~ "I : ~~ ~ ¡:;:; ! . <IÞ i -._.....~ -< " .. --.. \..'..; ~ " ~ } w% %~ ~ I ~"¡ 00 N~ .. 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',I..;-'f;j 5S~ ~ii «:2I-L...... t:::;: >- !§a; ~ (f)So ::'" :::::; â :...: '-' ~~ ",,::;: u:...:~ ~,<O;t::::;~::::< - !:~~ 7"O-çtJ ~I ~ ,.- '-¡¡ (.f) Ë "":s. 0~~~~~~~ - :::: Q - ;~!~;~ - eO. w u ;::OJ) ~ jtJr.J( :!o\ii (f) :;-;:;;; :¡:':::J1~ :::~:¿ ~i ~ , ~~~~~IÔ~~ .¡j (f) "'I- « - , <:::...:....:",...::;:-- E:9 I I --.---- -,'--.,- McMillin I Otay Ranch EXHIBIT " B' CFD No. 97-3 PLANNING AREA MAP \P-6,1 , " . iI ¡ , ~ ;;; ~,; , " ~ ~ t:~S;~\~~:~~T:~?~.,: - - - - I¿J '" ~ .. - . - - -- - ~_. '.- .- ,~ .,. ... RESOLUTION NO, /9'17/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENTS WITH WILLDAN ASSOCIATES FOR ACQUISITION SERVICES ASSOCIATED WITH COMMUNITY FACILITIES DISTRICT NO. 97-3 AND ASSESSMENT DISTRICT NO, 97-2, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS WHEREAS, the City Council approved the formation of Communities Facilities District No, 97-3 and Assessment District No, 97-2 to finance the acquisition of public infrastructure serving Otay Ranch SPA One properties; and WHEREAS, in accordance with Section 2,56.110 of the Municipal Code, staff followed the consultant selection process and performed a comprehensive review of the seven proposed vendors responding to the Request for Proposals to perform such services for the City; and WHEREAS, Willdan Associates was selected based on their experience, price, strong project team and excellent references, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve Agreements with willdan Associates and the City of Chula Vista for acquisition services associated with Community Facilities District No. 97-3 and Assessment District No, 97-2, a copy of which shall be kept on file on the Office of the City Clerk, 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 John P, Lippitt , Director of ~~ Public Works Attorney H:\Home\Lorraine\rs\willdan /&~1 -.-...-...-- Parties and Recital Page(s) Agreement between City of Chula Vista and Willdan Associates for Auditing Services for Community Facilities District 97-3 . This agreement ("Agreement"), dated May 25,1999 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph I is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, on November 24, 1998 the City Council of the City of Chula Vista approved Resolution I9276 forming Community Facilities District 97-3 ("CFD 97-3") for the purpose of acquisition of certain Public Facilities through the issuance of bonds secured by special taxes; and, Whereas the City is desirous of retaining a firm to certify the eligibility of costs associated with CFD 97-3; and, Whereas the City publicly noticed the Request for proposals, seven consulting firms responded to the request and Consu1tant was selected by the interview panel; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consu1tant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals, Next Page starts Obligatory Provisions,) 2pty1 Lwp Standard Form Two Party Agreement (Sixth Revision) July I, 1997 Page 1 /¿j-~ Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: L Consultant's Duties A. General Duties Consultant shall perfonn all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, . B. Scope of Work and Schedule In the process of perfonning and delivering said "General Duties", Consultant shall also perfonn all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time rrames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time rrames set forth therein, time being of the essence of this agreement, The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services", Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to tenninate this Agreement C. Reductions in Scope of Work City may independently, or upon request rrom Consultant, ITom time to time reduce the Defined Services to be perfonned by the Consultant under this Agreement Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D, Additional Services In addition to perfonning the Defined Services herein set forth, City may require Consultant to perfonn additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perfonn same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon, All compensation for Additional Services shall be paid monthly as billed, E. Standard of Care 2pty1 Lwp Standard Fonn Two Party Agreement (Sixth Revision) July 1, 1997 Page 2 )tJ -- r Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, F, Insurance Consultant represents that it and, its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk ofloss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away :!Tom premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross~liability Coverage"), Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy, G. Proof ofInsurance Coverage. (1) Certificates ofInsurance, Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indièating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured, (2) Policy Endorsements Required, In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance 2ptyl Lwp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 3 /~--/t) Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance, (1) Performance Bond, In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated þY a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated Î1I the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney, L Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Murricipal Code, 2, Duties of the City A. Consultation and Cooperation 2pty1 Lwp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 4 /¿J""jl City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shaH constitute a basis for the justifiable delay in the Consultant's performance of this agreement B. Compensation . Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checlanark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12, All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3, Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement 4, Term, This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5, Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14, 2ptyl Lwp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 5 JtJ~/;¿ It is acknowledged by both parties that time is of the essence in the completion ofthis Agreement It is difficult to estimate the amount of damages resulting from delay in per- formance, The parties have used their judgment to arrive at a reasonable amount to compensate for delay, Failure to complete the Defmed Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have, withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph I4 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time, Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6, Financial Interests of Consultant A Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph IS, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney, B. Decline to Participate, Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement C. Search to Determine Economic Interests, Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's 2pty11.wp Standard Form Two Party Agreement (Sixth Revision) July I, 1997 Page 6 )¿J-;Y knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D, Promise Not to Acquire Conflicting Interests, Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests, . Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder, F, Specific Warranties Against Econorrllc Interests, Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter, Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration ofthis Agreement, except with the written permission of City, Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City, 2ptyI Lwp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 7 /dJ-'l( -_._.__..~- . 7, Hold Harmless Consultant shall defend, indemnifY, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduèt of the City, its officers, or employees, Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employe~s in defending against such claims, whether the same proceed to judgment or not, Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action breught against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant, 8, Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to tenninate this Agreement by giving written notice to Consultant of such tennination and specifYing the effective date thereof at least five (5) days before the effective date of such tennination, In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice ofTennination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach, 9, Errors and Omissions In the event that the City Administrator detennines that the Consultants' negligence, errors, or omissions in the perfonnance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City, Nothing herein is intended to limit City's rights under other provisions of this agreement. 10, Tennination of Agreement for Convenience of City City may tenninate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such tennination and specifYing the effective date thereof, at least 2ptyl Lwp Standard Fonn Two Party Agreement (Sixth Revision) July 1, 1997 Page 8 /~..-/5' thirty (30) days before the effective date of such termination, In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property, If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination, Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein, 11, Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of:City, City hereby consents to the assignment of the portions of the Defmed Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material Ail reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City, No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City, City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement, 13, Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement City maintains the right only to reject or accept Consultant's work products, Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto, I4, Administrative Claims Requirements and Procedures 2ptyl Lwp Standard Form Two Party Agreement (Sixth Revision) July I, 1997 Page 9 /tJ-/? . ------- No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over tlÌe tenns of this Agreement 15, Attorney's Fees . Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees, 16, Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in perfonning the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B, Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons, C. Notices 2pty1 Lwp Standard Fonn Two Party Agreement (Sixth Revision) July I, 1997 Page 10 /¿) "'/7 All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing, All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties, D, Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F, 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 ChuIa Vista, or as close thereto as possible, Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page, next page is signature page,] 2ptyl I.wp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page II ItJ--/'if Signature Page to Agreement between City of Chula Vista and WiIldan Associates for Auditing Services for Mello-Roos District 97-3 IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its tenns: . Dated: ,19_ City of Chula Vista by: Shirley Horton, Mayor Attest: Susan Bigelow City Clerk Approved as to fonn: J~~~y Dated: 5- (9 -9q By, D 1 , Anderson Vice PresidentlRegional Manag Exhibit List to Agreement (X) Exhibit A (X) Exhibit B (X ) Exhibit C 2pty1 Lwp Standard Fonn Two Party Agreement (Sixth Revision) July I, 1997 Page 12 It) ~I/ Exhibit A to Agreement between City of Chula Vista and WilJdan Associates L Effective Date of Agreement: Måy 25, 1999 2, City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: , a 3, Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4, Consultant: Willdan Associates 5, Business F onn of Consultant: ( ) Sole Proprietorship ( ) Partnership (x) Corporation 6, Place of Business, Telephone and Fax Number of Consultant: 6363 Greenwich Drive, Suite 255 San Diego, California 92122 Voice Phone (619)457-1199 Fax Phone (619) 452-6680 2pty1 Lwp Standard Fonn Two Party Agreement (Sixth Revision) July I, 1997 Page 13 / ð'" .20 7. General Duties: Consultant will be responsible for providing auditing services for CFD 97-3, These services include but are not limited to: reviewing the developer's requests for each phased payment for confonnity with the current Acquisition / Financing agreement, the City's adopted policies and applicable laws, as amended, such as the Mello-Roos Act of 1980 and the 1915 Bond Act The consultant will also be required to certify that all costs are eligible and have indeed been paid to the appropriate contractor so that thè City's acquired improvements are lien free, 8, Scope of Work and Schedule: A Detailed Scope of Work: . ACTMTY 1 Review all relevant contract documents for CFD 97-3 Consultant will obtain and review all relevant construction contract documents, the special tax report, the current acquisition / financing agreement, all change orders, the as-built drawings, the resolution of intention, the resolution of formation, the City's current and proposed Transportation Development Impact Fee (TDIF) program and all other pertinent documents, Deliverables for this activity will include a working schedule for each of the districts with major milestones identified for each phase of reimbursement ACTMTY 2 Meet with the developer's and City's accounting staff for CFD 97-3 Consultant will meet with the developer's and City's accounting staff to identify and confirm the accounting documents that will be required by the consultant Such documents shall include but not be limited to copies of invoices, canceled checks, change orders, unconditional lien releases, and other documents reflecting the items constructed and their cost Improvement costs will be summarized by the consultant as TDIF eligible or non-eligible, Deliverables for this activity will be the minutes from the meeting with the developers, 2pty1 Lwp Standard Form Two Party Agreement (Sixth Revision) July 1,1997 Page 14 /?J --02/ ACTMTY 3 Perform audit for CFD 97-3 The consultant will review each payment request submitted to the City for reimbursement from the improvement fund. The consultant will request additional documentation from the developer when needed. Deliverables for this work activity will include: · A summary of costs to be reimbursed by the improvement fund for each phase broken down by type of improvement and the associated street as follows: Phase" StreetJ Improvement Improvement Type I La Media, Telegraph Canyon Grading, Sewer, Storm Drain, Surface Road to E, Palomar Rd Improvements, Landscaping, Utilities I La Media Crossing of Channel Crossing Telegraph Cyn, Channel 1,2 E, Palomar S1, ST A 27+55 to Grading, Sewer, Storm Drain, Surface STA35+96 Improvements, Landscaping, Utilities 1 Master Utility Loop Sewer, Storm Drain, Utilities 1 Santa Cora, North ofE. Grading, Sewer, Storm Drain, Surface Palomar Improvements, Landscaping, Utilities All All soft Cost Design Engineering, soils Engineering, Construction administration, Surveying and other soft costs · A side by side analysis comparing the original estimate with the actual cost for each phase · A submittal Letter of Audited Cost · An executive summary and audit format · Improvement location map · Notice of Completion for all items of work being reimbursed · A summary listing of hard and soft cost prorated into TDIF eligible and non-TDIF eligible · A contract summary outlining the original price, change orders (if any) and final contract price · Invoices, canceled checks and unconditional lien releases · A certification by the Consultant that the costs are eligible for reimbursement 2pty1 Lwp Standard Form Two Party Agreement (Sixth Revision) July I, 1997 Page 15 /¡jJ-,2;¿' ACTIVITY 4 Project Coordination for CFD 97-3 Throughout the process the Consultant will assume the lead in coordinating meetings with the City of Chula Vista and developers, including preparing and distributing minutes meetings to the participants for approval. The City has approved the project team of Tom Bandy, Ron Watson, Bob Quaid, and Thorn Davis, Any modification to the project team must be approved in writing by the City, B, Date for Commencement of Consultant Services: (x) Same as Effective))ate of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable for Activity No.1: Within two weeks of the effective date of this agreement Deliverable for Activity No, 2: Within two weeks of the effective date of this agreement Deliverable for Activity No, 3: Consultant will complete each audit within 10 working days from the date of the developer's submittal of the audit package to the City, D, Date for completion of all Consultant services: Provided consultant has completed all duties to the satisfaction of the City's Director of Public works, the date for completion will be within two weeks of the developer's final submittal for reimbursement 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance () Employer's Liability Insurance coverage: $1,000,000, (X) Commercial General Liability Insurance: $1,000,000, () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage), (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage), 10, Materials Required to be Supplied by City to Consultant: 2pty1 Lwp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 16 I ðl--)..3 All documents specified in Activity I of section g,A of Exhibit A of this agreement. 11, Compensation: A () Single Fixed Fee Arrangement For perfonnance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed ,fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: . Milestone or Event or Deliverable Amount or Percent of Fixed Fee ( ) I, Interim Monthly Advances, The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed, If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase, The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been perfonned by the Contractor, The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment, 2pty1 Lwp Standard Fonn Two Party Agreement (Sixth Revision) July I, 1997 Page 17 I~ ~ø2.ý B, (x) Phased Fixed Fee Arrangement For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth , Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase, Phase Fee for Said Phase L (See Exhibit B & C) Total contract shall not exceed $26,497 . 2, $ 3, $ ( ) 1, Interim Monthly Advances, The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase on1y the compensation for that phase has been paid, Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed, If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase, The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase, Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but on1y upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment, C. ( ) Hourly Rate Arrangement For performance of the Defmed Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the 2pty1 Lwp Standard Form Two Party Agreement (Sixth Revision) July 1,1997 Page 18 /tP-,2..Ç performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement . At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City, Nothing herein shall preclude Consultant nom providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate _(see Exhibit B) ( ) Hourly rates may increase by 6% for services rendered after [month], 19 ,if delay in providing services is caused by City, 12, Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs, 2pty1l.wp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 19 /t1 -- ,2 &, Cost or Rate () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiàble Direct Costs: , not to exceed $ , not tQ exceed $ 13. Contract Administrators: City: Sohaib Al-Agha, Senior Civil Engineer Consultant: Tom Bandy 14, Liquidated Damages Rate: ( ) $_per day, ( ) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable, Not an FPPC Filer, ( ) FPPC Filer ( ) Category No, 1, Investments and sources of income, ( ) Category No, 2, Interests in real property, ( ) Category No, 3, Investments, interest in real property and sources of income subject to the regulatory, pennit or licensing authority of the department ( ) Category No, 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property, 2ptyl Lwp Standard Fonn Two party Agreement (Sixth Revision) July 1, 1997 Page 20 It?--;¿ ? ( ) Category No,S, Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City ofChula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment ( ) Category No, 6, Investments in business entities and sources of income of the type·which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment ( ) Category No, '7, Business positions, ( ) List "Consultant AssociatlôS" interests in real property within 2 radial miles of Project Property, if any: 16, ( ) Consultant is Real Estate Broker and/or Salesman 17, Pennitted Subconsultants: 18, Bill Processing: A Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly ( x ) Other: See attached Exhibit C B Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( X) Other: See attached Exhibit C C City's Account Number: 408-4080-DE _ 19, Security for Perfonnance 2pty1 Lwp Standard Fonn Two Party Agreement (Sixth Revision) July 1, 1997 Page 21 /¡:J ......2!J --.----.... ( ) Performance Bond, ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ (X) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: _% (x) Retention /l.mount: $12,553 See Exhibit C Retention Release Event: ( ) Completion of AIl Consultant Services (x) Other: See Exhibit C \\$NDS\.CITYWIDE_SYS.CHULAVISTA\HOME\ENGlNEER\ASMTDIST\97-3\WILL9733.DOC 2ptyl Lwp Standard Form Two Party Agreement (Sixth Revision) July 1, 1997 Page 22 / t?".,.2; o to 'r-"- I.l)'("') CD', LO'......:,....,C"') CD ,.10 ..... ,''''' ,("'),(() " 't--. lOIN, ,......- LO,M M'm' co~... "Q" M (D I"'- ......'«)..- N'O'COtD r- 'N O;CO'tO~,.... I'- N,Q c() 0 N..... 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"I"'" N C"') en fþ ca t; I 0 tD I» as Q; ~ en I» ca t;, ;:; en t;, en G) t; · '0 '0 0'· - ~~,~as_..U_1 __..u_ o_..u_ ::J-- co_.._ ~ ."1""':10 , ,- - ... . -, .. - ... . - ... - - . ~ - Co' - - ... - -... Z' E , : "CI-I'II -! -1'0 - ....-1'0' ~- "CI-CO- ......... :..:!:': ___I»"CI't:"CIe, o.."CI't:"Ce ,g"CI't:"ge G)"CIE' 1»"CI't:E -'..J..J :..JU)-"CI ~ ~,~ ,::::!: f! :I ¡ ° I - f! ::I ; ° f! :::J ft 0 ë;; f! 0' :E f! :::J ° ~ C[..::( or,(:w.5:::J ~~t-.'C)cn..J'u :C)U),..Jo ;-C)cn..Jlu cuC)U .C)U)'U t- t-t-! t-t-::::!:..::( OOO.J W U) :IE.J 0 00 00" <<(or,( ..::( Þ-I- t-ZNC"':Þ /¿?...:J¿? Exhibit C Bill Processing CFD 97-3 L Consultant shall submit a invoice upon audit completion for Activity 3 duties in the following not to exceed amouu.ts (if the audit is phased, the invoice shall be in proportion to the completed improvements): a, Grading and Storm Drain Improvements $5,281 b. Surface improvements 6,074 c, Landscaping 2.589 Total 13,944 Upon completion and acceptance of the [mal audit by City of all the improvements presented in Exhibit B, Consultant will be paid the remaining balance ("Retention") of the contract equal to 12.553 Not to exceed Total 26,497 2, In the event that the City determines that Consultant did not receive all invoices, checks and other necessary audit materials from the developer for the final audit within four months from the notice to proceed by the City, Consultant may invoice and the City will pay Consultant up to 50% of the Retention of the work completed. jÞ/.1/ COUNCIL AGENDA STATEMENT Item /1 Meeting Date 5/25/99 ITEM TITLE: Resolution ) 9'1?..2.A warding a one-year contract, with a two-year extension at City's option, to Special District Financing and Administration, LLC for performance of Special District administrative services for Community Facilities District and authorize the Mayor to execute the agreement ~ SUBMITTED BY: Director of Public Works Director of Finance REVIEWED BY: City Manager (4/5ths Vote: Yes_NoXJ During Fiscal Year I998-99, the City established six new Community Facilities Districts in the Otay Ranch and Sunbow developments for the construction of public facilities or for the maintenance of open space areas. The City requires the services of a consultant to perform services necessary to administer the districts, including calculating charges to be levied on each parcel and delivering a magnetic tape with this information to the County prior to the August 10 deadline, RECOMMENDATION: That Council approve this resolution awarding a one-year contract, with a two-year extension at the City's option, for a maximum amount of $65,000 to Special District Financing and Administration, LLC for the performance of Special District administrative services and authorize the Mayor to execute the agreement BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: The City established six new Community Facilities Districts during Fiscal Year I998-99 in accordance with the Community Facilities Act of 1982 and Proposition 218. These Districts are known as follows: 1. CFD 97-1: Open Space Maintenance District (Otay Ranch - SPA One, Villages 1&5) 2. CFD 97-2: Preserve Maintenance District (Otay Ranch) 3. CFD 97-3: (Otay Ranch McMillan SPA 1) 4. CFD 98-1: Interim Open Space Maintenance District (Otay Project, LLC-OVP, Villages I West, 2, 2 West, 6, 7 & Planning Area 12) 5. CFD 98-2: Interim Open Space Maintenance District (McMillan - D,A, America, Otay - SPA Two, Villages 6 & 7) 6. CFD 98-3: Open Space Maintenance District No. 35 (Sunbow II) jl--J ~-_.._..._..__..._--_._~- Page 2, Item_ Meeting Date 5/25/99 All of these Districts provide funds for the maintenance of open space and preserve areas, with the exception of CFD 97-3. CFD 97-3 is an Acquisition District which provides funds for the construction of public facilities such as streets, utilities and landscaping. It is anticipated that bonds will be issued for this District within the upcoming month, Community Facilities Districts offer more flexibility in the methodology for assessing fees than Landscape Maintenance or Municipal Improvement Districts, which have been previously established by the City. Separate rates have been established for developed and undeveloped properties. Single family residences in Otay Ranch are assessed based on square footage of the residence, in order to keep the rate of assessment roughly proportional to the value. All parcels in these six Districts will be billed for the first time for Fiscal Year 1999-2000, In order to establish the annual rate for each District and to include each parcel on the tax roll prior to August 10, several steps are necessary, The budget and reserve requirements for these districts will need to be established. All building permits for single family residences in Otay Ranch will need to be reviewed in order to determine the square footage, Final Maps and Site Development Plans will need to be reviewed in order to determine acreage for Exempt Areas and rates for commercial! multiple family properties. Delinquency information will need to be obtained and spread to undeveloped parcels in CFDs 97-1 and 97-2, In order to reflect changes in density and land use, an "Extraordinary Special Tax" must be calculated for CFD 97-3. Additionally, CFD 97-3 involves other tasks, such as performance ofbond call spreads, the early redemption of outstanding bonds, releasing liens associated with early payoffs, and arbitrage calculations. The Backup Special Tax must be recalculated upon permit issuance in order to reflect changes in proposed density and land use. Consultant Selection Process Staff reviewed the methods of accomplishing the work, including performing the activities in- house and using a consultant. Currently staff does not have the expertise in administering Community Facility Districts, Also, existing staff is busy during this time of year working on the existing open space districts, Additional staff would need to be hired and trained in order to do the work in-house. This would not be practical due to time constraints (the August 10 deadline) and the fact that most of the work involved in this contract needs to be done during a four-month period. Hiring a consultant would therefore be more practical and cost-effective, Public Works - Engineering staff followed Section 2.56,110 of the Municipal Code in the consultant selection process. A three - member selection committee was appointed by the City Manager, which included Civil Engineer Elizabeth Chopp, Civil Engineer Frank Rivera and Engineering Technician II Bob Beamon, A Request for Proposal (RFP) was prepared and sent to twelve firms with expertise in this area, Additionally, a notice was published in the Chula Vista Star News, Seven firms responded to the request and submitted proposals, II; :2- Page 3, Item_ Meeting Date 5/25/99 Since all seven firms were considered competent to perform the work, all of the firms were interviewed by the selection committee, The firms included, in order of rank, were as follows: 1. Special District Financing and Administration (375 points) 2. Berryman & Henigar (353 points) 3, MuniFinancia1 Services (343 points) 4, Willdan Associates (326 points) 5, NBS Government Finance Group (319 points) 6, David Taussig & Associates (309 points) 7, McGill Martin Self, Inc, (289 points) These firms were ranked in accordance with the following criteria: 1. Qualifications of personnel (20 points) 2, Resources available to perform tasks on time and within budget (20 points) 3, Firm experience directly related to contract (20 points) 4, Quality of presentation (IS points) 5, Response to interview questions (25 points) 6, Total cost and justification (30 points) The committee members selected Special District Financing and Administration based on: 1) Lowest cost - the first year cost is estimated at $I5, 000 vs. over $20,000 for the other firms; 2) Most relevant experience in managing local Community Facilities Districts; 3) Good presentation in the interview; 4) Strong project team; and 5) Excellent references. Contract Issues Since expenses associated with CFD administration will be recovered from the billing to parcels within each CFD, each finn responding to the RFP was asked to break down costs for each CFD separately. Additionally, because the amount of work involved varies with the number of parcel s or the number of building permits issued in each District, the firms applying had the option of including a variable cost factor in the contract. The number of parcels included on the tax roll for each CFD for Fiscal Year 1999-2000 will not be known until shortly before the County's August IO deadline, since it will depend on the parcels split by the County as of the deadline. Therefore, the maximum anticipated cost for Fiscal Year 1999-2000 is estimated at $15,000 as follows: Fixed costs: $11,200 Additional meeting attendance $ 300 Total cost per parcel assuming 1400 parcels $ 3.500 TOTAL $15,000 The agreement includes a provision for a two year extension at option of the Public Works Director. It also includes the option to add additional Community Facilities Districts using costs negotiated for current districts, CFD 99-I, which will cover maintenance costs associated with /J" 3 Page 4, Item_ Meeting Date 5/25/99 Olympic Parkway, is currently in process, and it is anticipated that it will be implemented during Fiscal Year 2000-01. It is also anticipated that CFD 98-1 will be amended to include both developed and undeveloped properties within the next fiscal year. Due to this additional work, it is anticipated that the cost for Fiscal Year 2000-01 and 2001-02 will increase to $22,500 per year. This will bring the three-year contract amount to $60,000, However, since it is possible that development could occur more quickly than anticipated, a maximum authorization amount of $65,000 is requested, FISCAL IMPACT: As previously discussed, the total maximum contract amount for all three years is $65,000, The administration costs will be fmanced out of the revenue obtained from the individual districts for each year. The maximum contractual amount is estimated to be $15,000 for Fiscal Year 1999- 2000, H:IHOME\ENGINEERIAGENDA ICFDADMIN ,EMC File# 0725-IO-CFDOO /;--1 RESOLUTION NO, I r '17,2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AWARDING A ONE-YEAR CONTRACT, WITH A TWO-YEAR EXTENSION AT CITY'S OPTION, TO SPECIAL DISTRICT FINANCING & ADMINISTRATION, LLC FOR PERFORMANCE OF SPECIAL DISTRICT ADMINISTRATIVE SERVICES FOR COMMUNITY FACILITIES DISTRICT, AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, during fiscal year 1998-99, the City established six new Community Facilities Districts in the Otay Ranch and Sunbow developments for the construction of public facilities or for the maintenance of open space areas; and WHEREAS, the city requires the services of a consultant to perform services necessary to administer the districts, including calculating charges to be levied on each parcel and delivering a magnetic tape with this information to the County prior to the August 10 deadline; and WHEREAS, in accordance with the Consultant Selection Policy and provisions of the Municipal Code, the Selection Committee members selected Special District Financing & Administration, LLC based on a multitude of factors including low cost and relevant experience, NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby award a one-year contract, with a two-year extension at City's option, for a maximum amount of $65,000 to Special District Financing & Administration, LLC for performance of Special District administrative services for Community Facilities District, 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 and directed to execute said agreement on behalf of the city of Chula Vista, Presented by Approved as to form by ~<rM ~~ John P. Lippitt, Director of 'Jo. Kah~ny, cit Attorney Public Works H:\home\attorney\reso\special.agr //-"3 Panies and Recital Page(s) Agreement between City of Chula Vista and SpeciaJ Disu-ict Financing & Adminisu-ation, LLC for Special District Arlmini~tration Services This agreement ("Agreement"), dated for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals \Vhereas, the City recently formed six Community Facilities (MeIlo-Roos) Distticts to provide funding for the construction of infrastructure or for the maintenance of open space areas in accordance with the Community Facilities Act of 1982; and, Whereas, the City requires a consultant for the performance of administrative services which shall include, but not be Iimited to, caJculation of the maximum and annuaJ speciaJ tax rates for developed and undeveloped properties, submittal of all special tax levies per parcel to the County via magnetic tape, preparation of an annual report for all districts, and performance of bond services (where appIicable); and, Whereas, the Request for Proposals was prepared and advertised, proposals were received and reviewed, and [¡nns were interviewed and ranked in accordance with City policies; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals, Next Page stans Obligatory Provisions,) 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page I Jj--¿ .~...- Obligatory Pro\'isions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: L Consultant's Duties A, General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B, Scope of Work and Schedule In the process of performing and deIivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled " Scope of Work: and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deIiver to City such Deliverab1es as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement, The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defmed Services", Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement, Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction, D. Additional Services In addition to performing the Defmed Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon, All compensation for Additional Services shall be paid monthly as billed, 2pty12, wp Standard Form Two Party Agreement (Twelfth Revision) January 20, I999 Page 2 //"1 E, Standard of Care Consultant, in performing any Services under this agreement, whether Defmed Services or Additional Services, shaIl perfonn in a manner consistent with that level of care and ski]] ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the foIlowing insurance coverages, in the foIl owing categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9, Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and AppIicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which tteats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy, G, Proof of Insurance Coverage, (1) Certificates of Insurance, Consultant shall demonsttate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonsttating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured, (2) Policy Endorsements Required, 2pty12, wp Standard Fonn Two Party Agreement (Twelfth Revision) January 20, 1999 Page 3 )/; ð In order to demonstrate the Additional Insured Coverage. Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager, H, Securi(y for Performance, (1) Perfonnance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Perfonnance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a perfonnance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A, (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement, The Ietter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A, (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney, L Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code, 2, Duties of the City 2pty12,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 4 ///7 A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defmed Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shalI constitute a basis for the justifiable delay in the Consultant's performance of this agreement B, Compensation Upon receipt of a properly prepared billing from Consultant submined to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12, AIl billings submined by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specificaIIy contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment 3, Administration of Contract Each party designates the individuals (" Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract acimini<trator who is authorized by said party to represent them in the routine administration of this agreement 4, Term, This Agreement shall terminate when the Parties have complied with all executory provisions hereof 5, Liquidated Damages 2pty12,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 5 /I--It:? The provisions of this section appJy if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement, It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defmed Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"), Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time, Extensions oftime, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work, 6, Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer, If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney, B, Decline to Participate, Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a [mancial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests, Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 6 //~/ / economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests, Regardless of whether Consultant is designated as an FPPC Piler, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Pair Political Practices Act. E. Duty to Advise of Conflicting Interests, Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Pair PoIitical Practices Act, and regulations promulgated thereunder, F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defmed Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement, Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City , 2ptyl2,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 7 )/,,/.).. ~m__ _ _ __..__._.__._ Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibiliries under this Agreement, except with the written permission of City , 7. Hold Harmless Consultant shaH defend, indemnify, protect and hoId harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees, Consultant's indemnification shaIl include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not, Further, Consultant at its own expense shaIl, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees, Consultants' indemnificarion of City shall not be limited by any prior or subsequent declaration by the Consultant. 8, Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shaIl vioIate any of the covenants, agreements or stipulations of this Agreement, City shaIl have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shaH, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach, 9, Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City, Nothing herein is intended to limit City's rights under other provisions of this agreement. 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 8 II" 13 10. Termination of Agreement for Convenience of City City may tenninate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such tennination and specifying the effective date thereof, at least thirty (30) days before the effective date of such tennination. In that event, all fInished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is tenninated by City as provided in this paragraph, ConsuItant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such tennination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein, 11, Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assigmnent or novation), without prior written consent of City, City hereby consents to the assigmnent of the ponions of the Defmed Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsu1tants" . 12, Ownership, Publication, Reproduction and Use of Material All repons, studies, information, dara, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City, No such materials or properties produced in whoIe or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such repons, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13, Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products, Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefIts to which City employees are entitled including but not limited to, ovenime, retirement benefits, worker's 2ptyl2,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 9 J/~)i compensation beœfits, injury leave or other leave benefits, Therefore, Ciry will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto, 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same, Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement, 15, Attorney's Fees Should a dispute arising out of this Agreement result in Iitigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred. The "prevailing party" shall be deemed to be the party who is awarded substantially the reIief sought. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defmed Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17, Miscellaneous A, Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever, B, Consultant is Real Estate Broker and/or Salesman 2ptyl2, wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 10 //-'/.5 _.~..-- If the box on Exhibit A, Paragraph 16 is marked, the Consultant andlor their principals isl are licensed with the State of California or some other state as a licensed real estate broker or salesperson, Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons, C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing, All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties, D, Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F, Governing LawlVenue 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, shaIl be the City of Chula Vista, [end of page, next page is signature page,] 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 11 11/ I ¿, ----.--" SignaIUre Page to Agreement between City of Chula Vista and Special District Financing & Administration, LLC for Special District Administration Services IN WITNESS ì"''HEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: , 19 City of Chula Vista - by: Shirley Horton, Mayor Anest: Susan Bigelow. City Clerk Approved as to form: i~m ~û-.fd-"ð John., aheny, City Anorney Dated: Special District Financing & Administration, LLC BY:~~ Barbara a1e- arter, . clpal 2pty12,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 12 //~ ) 7 Exhibit List to Agreement (X) Exhibit A, 2ptyI2,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 13 j/-'jt' Exhibit A to Agreemem between City of Chula Vista and Special District Financing and Adm;n;<tratÏon, LLC 1, Effective Date of Agreement: Date of a,pprova1 by City Council 2, City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chu1a Vista, a () Other: , a [insert business fonn] ("City") 3, PIace of Business for City: City of ChuIa Vista, 276 Fourth Avenue, Chu1a Vista, CA 91910 4. Consultant: Special District Financing & Administration, LLC (SDFA) 5, Business Fonn of Consultant: ( ) Sole Proprietorship (X ) Partnership ( ) Corporation 6, Place of Business, Telephone and Fax Number of Consultant: 333 South Juniper Street 2pty12,wp Standard Form Two Party Agreemem (Twelfth Revision) January 20, 1999 Page 14 J/~/I Escondido. California 92025 Voice Phone (760) 233-2630 Fax Phone (760) 233-2631 7. General Duties: The consultant shall provide special district administration services relating to the billing of property owners for six Mello-Roos Community Facilities Districts (CFDs), including CFD 97-1, CFD 97-2, CFD 97-3, CFD 98-1, CFD 98-2 and CFD 98-3. This work shall commence with the 1999-2000 tax year (commencing on date of City approval of contract through March 31,2000) and can be extended to include the 2000-01 and 2001-02 tax year (through March 31,2002) at the City's option by written request of the Director of Public Works to May 1, 2000, 8, Scope of Work and Schedule: A, Detailed Scope of Work: ACTIVITY 1 Review all relevant documents City will provide Consultant with a list of all building permits issued during the periods specified in the Methods of Apportionment within Otay Ranch and Otay Ranch McMillan planning areas, Consultant will obtain and review building permit information, final maps and site development plans for all CFDs as well as all relevant information on file, Note that building permits may refer to Lot numbers rather than parcel numbers or addresses, Current Assessor Parcel listings shall be obtained, ACTIVITY 2 Update parcel database! spreadsheets Based on information provided by the County and the City on currently valid parcels, update the database for each CFD no later than June 30, Separate databases used for fee calculation must be prepared where there is more than one billing area (such as Area A and Area Bin CFD 97-1 and 97-2), Updating databases shall include changes in billing category (from "Undeveloped" to "Developed") and subtraction of acreage for developed and exempt areas from the undeveloped acreage, ACTIVITY 3 Determine charge on each parceI As part of updating the parcel database, calculate the maximum Special Tax rates by adjusting the previous year's rates by the lesser of the increase in the San Diego Consumer Price Index or the California Founh Quarter Per Capita Income, Based on information provided by the City regarding budget requirements for the following fiscal year, fund balances and reserve requirements, the actual Special Tax rates for each billing category shall be determined and the 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 15 / / .; 2-(7 costs distributed in accordance with the Rate and Method of Apponionment included in the Engineer's Repon for each CFD, The Extraordinary Special Tax for CFD 97-3 must be calculated separately, with a list of parcels and amounts owed provided to the City, ACTIVITY 4 Provide disk for property owner mailing Within 30 days of the City's request, the consultant must provide to the City a disk or other mutually agreed upon format which will include the CFD number, site address, property owner name and address, parcel number and maximum Special Tax charge on each parceI in a format which will be acceptable to the City's printer. ACTIVITY 5 Prepare and submit tape Compile and transmit a complete list of the actual special tax levies for each assessor's parcel in each CFD to the County via magnetic tape prior to July 31. Note that since there will be a separate fund for each CFD, the list for each CFD must be kept separately, The consultant shall make any corrections to the infonnation on the tape requested by the County prior to the County's fInal deadline of August 10, ACTIVITY 6 Prepare and submit annual Special Tax Report to City Deliver a draft annual report to the City on or prior to June 30, and the finaI annual report to the City on or prior to August 15. Both fInal and draft reports shall include infonnation and assumptions used to derive the maxilnum and annual rates; a report on the Extraordinary Special taxes owed, with parcel numbers and amounts given (CFD 98-3); and the amount of deIinquent taxes in CFDs 97-1 and 97-2 to be spread over the undeveIoped parceIs; and a list of all parcels in each CFD with the following infonnation: acreage, residential square footage, rate category, area (where applicable), maxilnum allowable charge and actual charge. Such fInal report shall meet the satisfaction of the City Engineer, ACTIVITY 7 Prepare delinquency report (for CFDs 97-1 and 97-2) Based on infonnation obtained from the County, prepare an annual written delinquency repon in order to determine the amount of delinquent taxes which will need to be spread to the undeveloped parcels. Such report shall be delivered to the City on or before June 30 and shall meet the satisfaction of the City Engineer. ACTIVITY 8 Perform bond services for CFD 97-3 Perform all required bond call spreads upon the need therefore and coordinate the early redemption of outstanding bonds, Each year after the sale of any bonds, prepare an annual 2pty12, wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 16 / /".2 / . -----".- report to be submined no later than October 30 to the California Debt and Investment Advisory Commission as required by Section 53359.5(b) of the California Government Code as amended. ACTIVITY 9 Perform services regarding individual special tax liens for CFD 97-3 Calculate written prepayment quotes for individual special tax liens upon request therefore, For parcels prepaying the special tax, prepare the documents required to release the Iiens to the satisfaction of the City . ACTIVITY 10 Prepare a spreadsheet for calculation of the Backup Special Tax for CFD 97-3 Prepare a spreadsheet(s), using Microsoft Excel, which will allow the City to collect Backup Special Tax Payments at building permit issuance to accommodate changes in density or building square footage, The City shall be provided with the disk containing the file for this spreadsheet. This is a one time only task to be completed on or before June 30, 1999, ACTIVITY 11 Meetings with City staff The consultant's staff shall anend an initial kickoff meeting and a meeting upon completion of the draft Special Tax Report with the City's staff. These meetings shall be scheduled by the City. ACTMTY 12 Attendance at City Council meetings (at the City's option) At the City's request, the consultant shall attend City Council meeting( s) at which the assessment for the above mentioned Community Facilities Districts are to be discussed. ACTIVITY 13 Perform Annual Arbitrage Calculations for CFD 97-3 (at the City's option) If City so requests, schedules to be prepared include: L Determination of yield on bond issues utilizing the present value of debt service payments 2, Computation of investment earnings subject to arbitrage rebate for each applicable fund utilizing the future value of nonpurpose investments 3, Table of assumptions and computational information 4, Sunnnary letter indicating the results of Consultant's [mdings with respect to any required arbitrage rebate Iiabi1ity Such schedules shall be delivered within 60 days of City's request. 2pty12,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 17 //"',2~ --- ------------------ -----~.. B, Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No, 1: On or before June 30 of every year, commencing in 1999, draft Special Tax Report and delinquency report for CFD 97-1 and 97-2, DeIiverable No, 2: On or before June 30, 1999, the computer disk containing the fIles for the spreadsheet for calculation of the Backup Special Tax for CFD 97-3. Deliverable No, 3: On or before July 31 of every year, commencing in 1999, electronic tape with parcel numbers and billable amounts for each Community Facilities District submitted to the County of San Diego Deliverable No, 4: On or before August 10 of every year, commencing in 1999. fInal corrections to the tax roll submitted to the County Deliverable No.5: On or before August 16 of every year, commencing in 1999, submittal of Final Special Tax Report with corrected printouts to the City D. Date for completion of all Consultant services: March 31, 2000, unless extended pursuant to Paragraph 7 above, 9, Insurance Requirements: (X) Statutory Worker's Compensation Insurance () Employer's Liability Insurance coverage: $1,000,000, (X) Commercial General Liability Insurance: $1,000,000, () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage), (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage), 10, Materials Required to be SuppIied by City to Consultant: A, Copy of the Final Engineer's Report for all Community Facilities Districts 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 18 ) /--- 23 -"-- ~._--_.__.~_._._--------_.- B, Copy of the Final Official Statement, bond indenture, arbitrage cenificare and other documents as required for Commurriry Facilities Districts involving a bond issue (CFD 97-3) C. Access to the City's computerized permit tracking system D, For CFD 98-3, copies of site development pIans (for commercial and multiple family properties) and Final Maps which have been approved prior to March 1 of the previous fiscal year E. (After first fiscal year) Copies of tax reapportionment forms completed by Ciry for parcels which have been segregated by the County during the previous fiscal year . 1 L Compensation: A. () Single Fixed Fee Arrangement. For performance of all of the Defmed Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: Milestone or Event or Deliverab1e Amount or Percent of Fixed Fee ( ) 1. Interim Monthly Advances, The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed, If the Phase is satisfactorily comp1eted, the City shall receive credit against the compensation due for that phase, The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase, Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the 2pty12,wp Standard Fonn Two Party Agreement (Twelfth Revision) January 20, I999 Page 19 1/---;1-'( Contractor. The practice of making interim monthly advances shall nO! convert this agreement to a time and materials basis of paymem, B: ( ) Phased Fixed Fee Arrangement. . For the performance of each phase or portion of the Defined Services by Consultant as are separately idenûfied below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase L $ ~ $ , $ ", ( ) 1, Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid, AIly payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed, If the Phase is satisfactorily completed, the City shalI receive credit against the compensation due for that phase, The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor, The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment, 2pty12, wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 20 /1" :2-5' c. () Hourly Rate Arrangement For performance of the Defmed Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1) () Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum CompenSation amount, Consultant agrees that Consultant will perfonn all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"), (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City, Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense, (3) (X) Additional Services Upon Request At any time during the tenn of this agreement the City Engineer may request the Consultant to perfonn additional services. The Consultant shall perfonn the same on a time and material basis at the rates listed below, in an amount not to exceed $5,000 per year, Rate Schedule Category of Employee Hourly of Consultant Name Rate Principal Jeffery Hamill $110,00 Principal Barbara Hale-Carter SIlO. 00 Pro2:rammer $95,00 2pty12.wp Standard Fonn Two Party Agreement (Twelfth Revision) January 20, 1999 Page 21 )1" ;¿t Associate $60,00 Data Entry / Secretary $45,00 ( ) Hourly rates may increase by 6% for services rendered after [month], 19 , if delay in providing services is caused by City. D, (X) Other Work shall be paid on the foIlowing basis per Community Facilities District, with all costs, materials, expenses and labor included in said costs, Costs are per year unless otherwise indicated, (1) CFD 97-] a, Fixed fee for Activities 1 through 7: $1,850; and b, $2.50 per parcel when such parcel is fIrst included in the CFD (2) CFD 97-2 a, Fixed fee for Activities] through 7: $1,850; and b, $2,50 per parcel when such parcel is fIrst included in the CFD (3) CFD 97-3 a. Fixed fee for Activities 1 through 6: $1,800; and b, $2.50 per parceI when such parcel is first included in the CFD c, Activity 8; $850 per year during any year in which bond services are required and in which this agreement is in force d, Activity 9: No charge for prepayment quotes; $250 per prepayment request to requesting party to prepare all documents necessary to release the lien e, Activity 10: No charge to City f. Activity 13 (optional): Arbitrage calculations - $500 for initial set- up for the schedules, $1250 per year for annual calculations up to an 18-month period, $1500 for transaction periods exceeding 18 months (4) CFD 98-1 a, Fixed fee for Activities 1 through 6: $1600 Should this interim district be converted ,to a permanent district, it shall be renegotiated at City's option per Section liD, (8) below, 2ptyl2.wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 22 )/';2 7 (5) CFD 98-2 a, Fixed fee for Activities 1 through 6: $1600 Should this interim district be convened to a permanent district, it shall be renegotiated at City's option per Section 110,(8) below, (6) CPO 98-3 a. Fixed fee for Activities 1 through 6: $1650; and b, $2.50 per parcel when such parcel is first included in the CFD (7) Overall EJI;penses a, Activity 11: No charge for ftrst two meetings; $100 per meeting over two meetings, Meetings held prior to eJl;ecution of this contract are excluded, b, Activity 12 (optional): $100 total per attendance at a Council meeting (8) New CFDs: The number of districts included in this contract may be increased after the 1999-2000 taJI; year billing at the City's option, Fixed fees for Activities 2 and 5 will be negotiated for these new districts. Fixed fees will be as foIJows for these new districts: Activity I: $I50 per year Activity 3: $500 per year Activity 4: No charge Activity 6: $350 per year Activity 7 (if required): $150 per year Activity 8 (if a bond issue is invoIved): $850 per year during any year in which bond services are required Activity 9 (if a bond issue is involved): No charge for prepayment quotes; $250 per prepayment request to requesting party to prepare aIJ documents necessary to release the lien Activity 10 (if required): No charge to City Activity 13 (optional, if a bond issue is involved): Arbitrage calculations - $500 for initial set-up for the schedules, $1250 per year for annual calculations up to an 18-month period, $1500 for transaction periods exceeding 18 months 12, Materials Reimbursement Arrangement For the cost of out of pocket eJl;penses incurred by Consultant in the performance of services herein required, City shaIJ pay Consultant at the rates or amounts set forth below: 2pty12, wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 23 ) /~)..~ ex) None. the compensation includes all costs. Cost or Rate () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 13. Contract Administrators: City: Elizabeth Chopp, Civil Engineer, City of Chula Vista, 276 Fourth Ave" Chula Vista CA 91910, (619) 691-5258 Consultant: Barbara Hale-Caner, Special District Financing and Administration (SDFA), 333 South Juniper Street, Suite 208, Escondido CA 92025, (760) 233-2630 14. Liquidated Damages Rate: ( ) $_per day, ( ) Other: 15, Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ex ) Not Applicable, Not an FPPC Filer. ( ) FPPC Filer ( ) Category No, L Investments and sources of income, ( ) Category No. :2, Interests in real property, 2pty12, wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 24 / /--.2 ~ ( ) Category No, 3, Invesnnems, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category No.4, Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property, ( ) Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment, ( ) Category No, 6, Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, suppIies, materials, machinery or equipment. ( ) Category No, 7, Business positions, ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16, ( ) Consultant is Real Estate Broker and/or Salesman I 7, Permitted Subconsultants: 18, Bill Processing: A, Consultant's Billing to be submitted for the following period of time: ( ) Monthly 2pty12,wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 25 /1,30 ( ) Quarterly ex ) Other: Upon cornp1etion of all duties within Deliverables 1 throucrb ~ Quarterlv thereafter B, Day of the Period for submission of Consultant's Billing: ( ) Firs! of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: 19, Security for Perfonnance ( ) Perfonnance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: ,tunount: $ ( ) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: % ( ) Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: 2pty12. wp Standard Form Two Party Agreement (Twelfth Revision) January 20, 1999 Page 26 //"3/ COUNCIL AGENDA STATEMENT Item: /,),. - Meeting Date: 05125!99 ITEM TITLE: Resolution / '117 '¡pproving a Three-Year Agreement between the City of Chula Vista and the San Diego Unified Port District for Tideland Maintenance Services in the area of Bayside Park, Chula Vista Bayfront Park, Marina View Park and adjacent medians of San Diego Unified Po istrict Property. SUBMITTED BY: Director of Public W orksþ REVIEWED BY: City Manage~~ :.---? (4/5ths Vote: Yes _ No.xJ The City of Chu1a Vista and the San Diego Unified Port District staff have negotiated a new three-year maintenance agreement for Port District property at the Chula Vista Bayfront Park, Marina View Park, Bayside Park and landscaped medians on Tidelands Avenue between Sandpiper Way and West "J" Street. The Agreement amount not to exceed $ 339,120 per fiscal year unless a written request and documentation is submitted to the Port District for approvaL STAFF RECOMMENDATION: That Council adopt the Resolution to approve the Agreement, and authorize the Mayor to execute said Agreement. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On January 7, 1997, the San Diego Unified Port District Approved Resolution No. 97-04 which authorizes a three -year Agreement between the City of Chula Vista and the San Diego Unified Port District for grounds and comfort station maintenance at the "J" Street Marina, Bayside Park, and the landscape medians on Tidelands Avenue, The resolution approved an Agreement amount not to exceed $314,628. The Port District and Public WorkslParks staff had discussions over a period of two months to prepare a new maintenance agreement. The following are changes from the previous agreement: Section 2, Duties, Definitions and Exceptions A, It is understood and agreed that the cost for routine cleaning, landscaping, minor maintenance and revlacement of vehicles and eauivment used in maintenance of District tidelands", C. DISTRICl' a¡zrees to fund the eauivment revlacement fund for vehicles verforminl! work under this Al!reement as included in the CITYS YEARLY BUDGET FOR MAINTENANCE WORK. The maximum fundinl! for this account will not exceed the sum of Five Thousand. Eil!ht Hundred. FortY Dollars ($5.840) ver fiscal year, [NETWORK-mc-AI13-Marina.AI3-May 18, 1999] 1,2 -j Item: Meeting Date: 5/25/99 Section 3. Consideration A, In consideration fore the foref!oinf! verformance bv the CITY. DISTRICT shall vav CITY an amount not to exceed Three Hundred Thirtv nine Thousand One Hundred Twentv Dollars ($ 339.120) Der fiscal vear. Section 3,8. has language that enables the City to increase the "Consideration" due by providing satisfactory documentation to the District to substantiate the increase, This has been a normal practice over the years for increases due to salaries, increased levels of maintenance or special projects, In the event a dispute arises over an adjustment to the agreement and a resolution cannot be attained, either party has the right to terminate the agreement with a 90-day notice. There are minor changes included in this year's budget. First, the Department included the salary adjustments given to the Park Supervisor and Senior Gardener (as included and approved in the CVEA MOD), the Equipment Replacement Account ($5,840) was restored to reflect equipment amortization and finally, funds ($1,250) were added for mandated safety training, The Three-year Agreement provides the same level of maintenance, The base budget Park is $258.260. In addition, there is an administrative overhead charge (Full Cost Recovery) of $ 80,860, The total contract is $339,120, Attachment "A"is a comparison of the FY 98/99 budget and the proposed FY 99/00 budget. FISCAL IMPACT: The funds received from the Port District from this Agreement will fully reimburse the City's operating expenditures of $258,260 and administrative overhead of $80,860 budgeted for FY 1999/00. Attachments: Maintenance Budget [NETWORK-mc-AI13-Marina.At3-May 18, 1999] /2 ~;2 .".--.--_..-- ATTACHMENT ....d.. 't.O .~ I 1446 PK MAINT/J ST MARINA I EXPENDITURE SUMMARY: FY97 FY98 FY99 ACTUAL BUDGET TOTAL 05101 SALARIES & WAGES 0 133,739 143,955 05102 DIFFERENTIAL 0 0 480 05103 OVERTIME W/O PERS 0 3,048 3,208 05105 HOURLY WAGES 0 11,084 12,132 05141 RETIREMENT CONTRIBUTION-CITY 0 17,325 18,711 05142 EMPLOYEE BENEFIT PLAN 0 22,961 23,352 05143 MEDICARE CONTRIBUTION - CITY 0 1,654 1,625 05144 WORKERS' COMPENSATION 0 420 450 05145 PARS CONTRIBUTION-CITY 0 416 455 PERSONNEL SERVICES 0 190,647 204,368 05224 TRAINING - CITY PERSONNEL 0 0 1,250 05252 TELEPHONE 0 438 500 05253 TRASH COLLECTION & DISPOSAL 0 7,306 7,306 05254 WATER 0 0 0 05268 SERV TO MAIN-OTHER EQUIP 0 370 370 05269 EQUIP MAINT-CITY FORCES 0 13,163 '13,821 05270 EQUIPMENT REPLACEMENT CHARGES 0 0 5,840 05281 LAUNDRY & CLEANING SERVICES - CVEA 0 656 695 05298 OTHER CONTRACTUAL SERVICES 0 5,280 5,280 05302 JANITORIAL SUPPLIES 0 3,000 3,500 05304 WEARING APPAREL 0 1,110 1,110 05341 SMALL TOOLS 0 .210 210 05351 LANDSCAPE SUPPLIES 0 7,740 7,740 05362 MATLS TO MAIN-BLDGS. STRUC & GRDS 0 6.270 6.27a SUPPLIES & SERVICES 0 45,543 53,892 OPERATING CAPITAL 0 0 0 DEBT SERVICES/TRANSFERS OUT 0 0 0 TOTALS : 0 236,190 258,260 Administrative Overhead 80,860 (.56171 x [5101]) GRAND TOTAL $339,120 /2-3 FY99-00 Proposed Budget/DEPT/DIV Summary 14001446 I RESOLUTION NO, /lJ1?J RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THREE-YEAR AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT FOR TIDELAND MAINTENANCE SERVICES IN THE AREA OF BAYS IDE PARK, CHULA VISTA BAYFRONT PARK, MARINA VIEW PARK AND ADJACENT MEDIANS OF SAN DIEGO UNIFIED PORT DISTRICT PROPERTY WHEREAS, on January 7, 1997, the San Diego Unified Port district approved Resolution No, 97-04 which authorized a three- year Agreement between the City of Chula vista and the San Diego Unified Port District for grounds and comfort station maintenance at the "J" Street Marina, Bayside Park, and the landscape medians on Tidelands Avenue for the period July 1, 1996 through June 30, 1999; and WHEREAS, the City of Chula vista and San Diego Unified Port District representatives have negotiated a new three-year maintenance agreement for Port District property at the Chula vista Bayfront Park, Marina View Park, Bayside park and landscaped medians on Tidelands Avenue between Sandpiper Way and West "JII Street; and WHEREAS, the amount of the Agreement is not to exceed $339,120 per fiscal year, NOW, THEREFORE, BE IT RESOLVED that the City Council of the city of Chula vista does hereby approve in the form presented a Three-Year Agreement between the City of Chula vista and the San Diego Unified Port District for Tideland maintenance services in the area of Bayside Park, Chula vista Bayfront Park, Marina View Park and adjacent medians in San Diego Unified Port District Property, a copy of which shall be kept on file in the office of the city Clerk, BE IT FURTHER RESOLVED that Mayor of the city of Chula vista is hereby authorized and directed to execute said Agreement for an on behalf of the City of Chula vista, Presented by Approved as to form by John P, Lippitt , Director of Public Works H:\home\attorney\reso\port.jst /).;'/ - .-------- .._~.~~_.....- AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO UNIFIED PORT DISTRICT FOR TIDELANDS MAINTENANCE SERVICES IN THE AREA OF BAYSIDE PARK, CHULA VISTA BAYFRONT PARK, MARINA VIEW PARK AND ADJACENT MEDIANS ON SAN DIEGO UNIFIED PORT DISTRICT PROPERTY. THIS AGREEMENT ("Agreement"), made and entered into this day of , 1999 by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "CITY", and THE SAN DIEGO UNIFIED PORT DISTRICT, a public corporation of the Sate of California, hereinafter called "DISTRICï, is for Tidelands Maintenance Services on DISTRICT property located in the" J" Street Marina area as more fully described below: NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED by and between the parties as follows: 1. SERVICES TO BE PROVIDED A, CITY shall provide personnel, supervision, equipment, and materials as necessary to provide cleaning, landscape maintenance, and minor facilities maintenance of DISTRICT tidelands as specified in attached Exhibit A and incorporated herein, Specified DISTRICT tidelands are located in the area of "J" Street Marina, at Bayside Park, Chula Vista Bayfront Park, Marina View Park, and other landscaped areas, medians, floats, parking lots, piers, ramps, riprap, and a marine pump out station in Bayfront Park, B. CITY agrees to comply with the scope of work and maintenance specifications attached as Exhibit B and incorporated herein, C, Labor, equipment and materials funded by the DISTRICT in support of this Agreement shall be used solely for maintenance of DISTRICT tidelands specified in Exhibit A D, CITY shall provide DISTRICT with access to all DISTRICT property reasonably necessary to the performance of this Agreement, including but not limited to the areas specified in Exhibit A. 2, DUTIES, DEFINITIONS and EXCEPTIONS A It is understood and agreed that the cost for routine cleaning, landscaping, minor maintenance and replacement of vehicles and equipment used in the maintenance of DISTRICT tideland areas specified in Exhibits A and Bare included in this Agreement It is also understood that this Agreement does not cover materials, or labor for major maintenance repairs to DISTRICT tideland structures, buildings, or landscaping nor for maintenance and repair of DISTRICT tenant leased areas and DISTRICT controlled areas, For the purpose of this 1 J,2~5' Agreement, major maintenance costs shall be defined as anyone-time cost (including materials and labor) amounting to more than one Thousand Dollars ($1,000.00), CITY shall identify and refer all major maintenance projects to DISTRICT Maintenance Department. CITY shall not undertake a major maintenance project without DISTRICT approval. CITY shall bill DISTRICT for actual costs of material and labor involved in such approved major maintenance projects, S. CITY shall have no responsibility or liability for pruning of trees on the properties which are the subject of this Agreement, except as to minor tree trimming as specified in Exhibit B hereto, . C, DISTRICT agrees to fund the equipment replacement fund for vehicles performing work under this Agreement as included in the CITY's yearly budget for the maintenance work. The maximum funding for this account will not exceed the sum of Five Thousand Eight Hundred Forty Dollars ($5,840,00) per fiscal year. 3, CONSIDERATION A. In consideration for the foregoing performance by the CITY, DISTRICT shall pay CITY an amount not to exceed Three Hundred Thirty Nine Thousand One Hundred Twenty Dollars ($339,120,00) per fiscal year. S. If during the term of this Agreement CITY foresees a need to change salaries and benefits, CITY shall give DISTRICT ninety (90) days written notice of such changes and provide documentation satisfactory to DISTRICT to substantiate the change, Such changes shall be recognized as a basis for increasing or decreasing the remaining consideration due after such changes are approved by CITY, and, if approved by DISTRICT's Board of Port Commissioners in their sole discretion, shall be reflected in the next quarterly payment to CITY. C. If during the term of this Agreement CITY foresees a need to change maintenance specifications or staffing levels, CITY shall give DISTRICT a written proposal recommending such changes and provide documentation satisfactory to DISTRICT to substantiate the recommendation. Such changes shall be recognized as a basis for increasing or decreasing the remaining consideration due after such recommended changes are approved by DISTRICT's Board of Port Commissioners in their sole discretion, and shall be reflected in the next quarterly payment to CITY. D, Payment for the fiscal year shall be paid in quarterly installments upon the CITY's written request to DISTRICT anytime after the first day of each calendar quarter of the term of the Agreement DISTRICT agrees to reimburse CITY within thirty days of receipt of a properly prepared request for reimbursement The request for reimbursement shall document labor hours, and cost of / /:¿'? materials, supplies, and outside services paid for the quarter for which payment is requested. 4, TERM AND TERMINATION This Agreement covers services rendered for the three (3) year period from July 1, 1999 to and including June 30, 2002 provided, however, either party may terminate this Agreement' at any time by giving the other party notice in writing ninety (90) days prior to the requested date of termination, It is further provided that said Agreement may be renewed subject to mutual Agreement between parties as to annual consideration to be paid by DISTRICT for said services for said fiscal year. . 5, STATEMENTS OF ACTUAL COSTS INCURRED A By September 30 of each year of this Agreement following the close of DISTRICT fiscal year on June 3D, CITY shall provide DISTRICT with a final accounting in the form of a Statement of Actual Costs Incurred in providing subject services for the prior year. Such accounting shall include, but is not limited to, job titles and actual numbers of full-time-equivalent staff hours actually worked based on adjusted budget schedules, the total wages and benefits expense, the cost of materials, supplies and outside services paid, and overhead calculation method and amount B. Any underage or overage resulting from the difference between the total payments subject to this Agreement and the Statement of Actual Costs Incurred as described in paragraph 5A above shall be adjusted in the following quarterly payment If the Agreement is no longer in force, CITY and DISTRICT agree to remit the difference to the other party within thirty (30) calendar days, 6, HOLD HARMLESS A, DISTRICT agrees to indemnify and hold harmless the CITY against and from any and all damages to property or injuries 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 as it relates to this Agreement B. CITY agrees to indemnify and hold harmless the DISTRICT against and from any and all damages to property or injuries 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 ß /;L..; l 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 as it relates to this Agreement 7, INSURANCE A (1) DISTRICT shall, throughout the duration of this Agreement maintain comprehensive general liability insurance covering all operations hereunder of DISTRICT, its agents and employees including, but not limited to, premises and automobile with minimurT} coverage of One Million Dollars ($1,000,000) combined single limits, Evidence of such coverage, in the form of a letter indicating self insurance shall be submitted to the CITY Clerk at 276 Fourth Avenue, Chula Vista, California 91910, (2) Said policy or policies shall provide thirty (30)-day notice to the City Clerk of CITY of cancellation or material change, B. (1 ) CITY shall, throughout the duration of this Agreement maintain comprehensive general liability insurance covering all operations hereunder of CITY, its agents and employees including, but not limited to, premises and automobile with minimum coverage of one Million Dollars ($1,000,000) combined single limits, Evidence of such coverage, in the form of a Certificate of Insurance and Policy Endorsement which names DISTERICT as Additional Inured to the full limit of the CITY's policies, shall be submitted to DISTRICT at 3165 Pacific Highway, San Diego, California 92101. (2) Said policy or policies shall provide thirty (30)-day notice to the DISTRICT of cancellation or material change, C. CITY shall also carry Worker's Compensation insurance in the statutory amount and Employer's Liability coverage in the amount of Five Hundred Thousand Dollars ($500,000), Evidence of this coverage is to be furnished DISTRICT in the form of a Certificate of Insurance, This insurance shall be endorsed to name DISTRICT as a secondary employer as to work performed under this Agreement 8. ATTORNEY FEES In the event of any dispute between the parties, the prevailing party shall recover its attorney fees, and any costs and expenses incurred by reason of such dispute, y / ¡), -- g/ 9, AUDITABLE SERVICES A. All costs reimbursed shall be based on actual services rendered for which the cost is reasonable and substantiated by data that is auditable to support that level of service, B. CITY shall, at all times'during the term of this Agreement, keep or cause to be kept accurate and complete financial and other records supported by source documents which substantiate that payment for services provided under this Agreement as described in paragraph 1, and attachments thereto, are only for services performed on DISTRIC1 tidelands, Said records shall be established and maintained so as to conform to generally accepted accounting principles and shall be open for inspection by DISTRICT or its designee at all times during regular business hour upon reasonable prior notice. DISTRICT shall have the right to require CITY to institute and maintain additional record keeping methods and systems as DISTRICT deems necessary, provided the written request is made in advance of the fiscal year and DISTRICT agrees to pay for the cost of record-keeping in excess of normal accounting practices for similar local agencies, All such records shall be kept by CITY for at least the years after termination of this Agreement DISTRICT shall be required to pay CITY only for services which are substantiated by such records as being performed on DISTRICT tidelands, IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written, CITY OF CHULA VISTA SAN DIEGO UNIFIED PORT DISTRICT Deputy Executive Director ATTEST: City Clerk Approved in form by: Approved in form by: City Attorney Port Attorney ¡f' /;2-1 .. EXHIBIT A , , , Bayside Park Chula Vista Bayfront Park Marina View Park ,. j;¿-"/tJ ~~1 __ r ~/. ,- 0 f-o (l) , 1-,. a: I m ~ I êi) a. ~" -- ......, . '-0. . "- 0. ~:. :.~ m I' ..... >. (J) _ (l) -!~ ~·I:~ ,/ ~ i!. ro - ~ 0/' D- r. ,-0 '-'- . C ~ ,'", \ "- I' I (l) (J) ']0 ~ . m m . '0.' (J) f I Cf). .\ ! . . c . . ¡- ~ ' \ ¡ I I, 0 . - '! !/ -- \ r'" a: ' ¡ : . , , r--lL -1':::, \ j lid ~ c '. . p õ" '1 I': , , ':'! ~ j"I: '- . /' 0 /'/ ' õ~ "0 , , ", . :, I j E~ ' / - . ¡ eo --~''---~ j / ~ I /. :: , ~I - ~. I i !l!L: o..U . . ,-". (C. _,', I -'. '. ;,¡,j , I~ I I Im!II, I, ¡ . '. -, " '., "'.J, I , . . y ) /~ r'--i >-. ~ '--'~;I .' . CJa .".... .~t:..¥. ~'" ~v.9:.~. ,f;.",,~J:'~ ,.:i- 0 ~ , I , .:0 :~~.-;~~ . 0... ""::. . .-'0'0- .:~:o~f - . .. -. ~- ° ~: :>:= O~ .."{! """"" . ...." :":' .. ..J. ~ - 00 - . .' ,. '. 1; -e . c . :~ 0: 3 -- '..~ c ;;: I!I 1 c -: o~ :; . '" .c . : .,' () .. '. ..... ..c: ....00 .' ..... 0 -. J:.. '" ~ ::.-:"J 0 :J ._E- ,Z _':.'o~ -...:.. ~O , ,- . J " ~ ¡... l '" -æ <D "'0 .- c. en It! » ¿ co . >- m ~ c: \ 0 > I- Z 0 a: r-tL ~ Ü'" ~~ at/) > '" c"" c-' c::> co: o..ü j Š ¡aal¡S 8 ~i )).-),2 I < ~ ' " ,-,;;-, ,.,.C\I 0 ¡ - <>--- ~ c X c -¡; ;;: £ c :; -+-' .r; ::¡ 0 0 . . ,00 ! ~ . . Q, I I ~ c c i- . . ~D eu :> I~ '" 1"'0 I-- I(/) ,» c. leu a:J :: IOJ >- - C l- X (J 0 > a: ...u. ~ üm ;~ c- o» c< ë-' c:> c:r; 0:0 Á8M){l8d a¡:JiS.Á1?8 /2-/3 - . rrm :Ill Jill Jill Ill! +-' IIIJl C illJI 0 11ßJ '- !IDl '+- !IDl >. ill]] ro ill]] ill :rrn :mJ ro III +-' IID (J) > ~ :::--.:::: . ~ :?::::: ~ ~ 0 :?::::: =« :?::::: cnt- -cnt- :::--:::::: O-Z 0»0 c«u: C-'lL C:J>- !!!:I:<C o..Om d ~o! I ~ :I /.2-/1 , , ~ .. ~ a:: N, ~ . ~-- , , , .. : , ~ .... (\J ~ 3: <D -- > (\J c: -- ... (\J 2 0 .:::« .!!!I- 0(1)1- m>Z c«o C-la: C;:)LL <O:¡:>- - « ,,-om ë , '" r ' à )J.-/S o '" ~o .S! 0.[ '" c ____._.._.'. f!: , ! I I I . EXHIBIT B Maintenance Specification j:J-1f MAINTENANCE SPECIFICATION Scope of Work CITY shall provide personnel, supervision, equipment, and material as necessary to provide cleaning, landscaping, and minor facilities maintenance on DISTRICT tidelands as specified below, 1, Turf Areas . A Maintain turf areas a=rding to acceptable green industry standards as determined by DISTRICT representatives, B. Minimum requirements: (1) Mow turf with a reel mower to Yo inch, April through September - once per week, October through March - as required to maintain a proper appearance, (2) Verticut two times per year. (3) Aerify two times per year. (4) Overseed, top dress, or resod worn or bare areas as needed, (5) At least annually treat turf for control of disease, weeds, and insects, (6) Fertilize twice per year. (7) Irrigate turf areas to maintain adequate moisture for proper growth and appearance, 2, Landscape Areas A. Maintain shrubs, ground cover, and low hanging tree branches in a manner to promote proper healthy growth and aesthetic pleasing appearance, B. Minimum requirements: (1) Prune and trim shrubbery quarterly, ;r I;¿-// Maintenance Specification Exhibit B Page 2 of 4 (2) Fertilize shrubs, ground cover, and trees twice per year. (3) Remove trash and debris from shrubbery and ground cover at least weekly, (4) Remove and replant dead shrubs, ground cover and trees as needed with like material. . (5) Trim low hanging and broken tree branches as needed. (6) Treat shrubs, grown cover, and trees for control of disease, weeds, and insects at least annually, (7) Irrigate shrubbery, ground cover, and trees to maintain adequate moisture for proper growth and appearance, C, DISTRICT shall contract for tree trimming services, 3, IrriQation Svstem A Inspect and perform periodic maintenance on the irrigation system including controllers, valves, valve boxes, sprinkler heads, laterals main lines, and water pressure regulators, 8. Minimum requirements: (1) Monitor irrigation system performance; make spray pattern adjustments, repair clogging, breakage, or damage to sprinklers; and, remove obstacles at least weekly. (2) Repair all leaking and defective irrigation valves and sprinkler heads within twenty-four hours of notification, (3) Test and adjust or repair/replace irrigation water pressure at least monthly to maintain a service pressure of 60 to 80 pounds per square inch, C, DISTRICT shall test, certify and maintain all backflow preventors, 7' /2-/Y Maintenance Specification Exhibit B Page 3 of 4 4, General Areas A, Perform general cleaning of specified District tideland parks, walkways, streets, parking lots, playgrounds, piers, floats, ramps, riprap, beach area and rest room facilities, . B. Minimum requirements: (1) Sweep, edge, and remove debris from walkways, May through October - once per week, November through April - as needed (2) Sweep parking lots and streets, June through September - twice per week, October through May - once per week, (3) Clean and restock public rest rooms, Twice per day, seven days per week, (4) Empty trash receptacles and replace liners, April through September - daily, October through April - as needed but at least twice per week, (5) Litter control of parks, medians, parking lots, riprap, and beach areas, Remove litter and debris by hand, April through September - daily, October through March - as needed, Promptly notify DISTRICT of debris requiring removal by mechanical means or vessel. (6) At least weekly, remove collected litter and trash from tideland properties, (7) Wash and scrub of walkways, streets, piers, parking lot and float At least, twice per year; except, wash fishing pier weekly, (8) Monitor area for excessive wild life populations and report problems to DISTRICT - weekly, C, DISTRICT shall contract for vector control services. /' 1.,2---/; Maintenance Specification Exhibit B Page 4 of 4 5, Facilities , A Perform inspections, preventive maintenance, and minor maintenance repairs to specified District tidelands properties, . B. Minimum requirements: (1) plumbing repair. (2) electrical fixtures repair/replacement and relighting. (3) general building painting and minor repair (4) graffiti removal (5) playground/sports equipment repair. (6) curb painting, street stripping, and street legends, (7) park bench and table repair. (8) drain and gutter clean out. (9) marine pump-out facility: (a) flush with salt water - weekly (b) inspect for proper operation - weekly (c) promptly notify DISTRICT of any problems (10) install, replace, repair DISTRICT supplied park signs, C, DISTRICT shall test, certify and maintain backflow preventors. ,k /:;......,2ð · EXHIBIT C FY 99/00 City of Chula Vista Budget /2-,;2/ I 1446 PK MAINT/J ST MARINA I EXPENDITDRE SUMMARY: FY97 FY98 FY99 ACTUAL BUDGET TOTAL 05101 SALARIES & WAGES 0 133 ~ 739 143,955 05102 DIFFERENTIAL 0 0 480 05103 OVERTIME W/O PERS 0 3,048 3,208 05105 HOURLY WAGES . 0 11,084 12,132 05141 RETIREMENT CONTRIBUTION-CITY 0 17,325 18,711 05142 EMPLOYEE BENEFIT PLAN 0 22,961 23,352 05143 MEDICARE CONTRIBUTION - CITY 0 1,654 1,625 05144 WORKERS' COMPENSATION 0 420 450 05145 PARS CONTRIBUTION-CITY 0 416 455 PERSONNEL SERVICES 0 190,647 204,368 05224 TRAINING - CITY PERSONNEL 0 0 1,250 05252 TELEPHONE 0 438 500 05253 TRASH COLLECTION & DISPOSAL 0 7,306 7,306 05254 WATER 0 0 0 05268 SERV TO MAIN-OTHER EQUIP 0 370 370 05269 EQUIP MAINT-CITY FORCES 0 13,163 13,821 05270 EQUIPMENT REPLACEMENT CHARGES 0 0 "5,840 05281 LAUNDRY & CLEANING SERVICES - CVEA 0 656 695 05298 OTHER CONTRACTUAL SERVICES 0 5,280 5,280 05302 JANITORIAL SUPPLIES 0 3,000 3,500 05304 WEARING APPAREL 0 1,110 1,11.0 05341 SMALL TOOLS 0 .210 210 05351 LANDSCAPE SUPPLIES 0 7,740 7,740 05362 MATLS TO MAIN-BLDGS, STRUC & GRDS 0 6,270 6,270 SUPPLIES & SERVICES 0 45,543 53,892 OPERATING CAPITAL 0 0 0 DEBT SERVICES/TRANSFERS OUT 0 0 0 TOTALS : 0 236,190 258,260 Administrative Overhead 80,860 (.56171 x [5101]) GRAND TOTAL $339,120 FY99-00 Proposed Budget/DEPT/DIV Summary 14001446 )).;-;2.2- Item /3 Meeting Date 5/25/99 COUNCIL AGENDA STATEMENT ITEM TITLE: A) Resolution /9'17{ Approving a Deferral Agreement with Shea Homes Concerning the Development of Certain Lots in Neighborhoods R-7 and R-1 0 of Otay Ranch SPA One, Village One and Authorizing the Mayor to Execute Said Agreement. B) Resolution 19'1 ?..š Approving Final Maps of Chu1a Vista Tract No,96-04, Otay Ranch, Village One, for Neighborhoods R-7 and R-IO, Accepting on Behalf of the City of Chula Vista General Utility and Access Easements, and Wall Easements Granted on said maps within said Subdivisions and approving the Subdivision Improvement Agreements for the completion of improvements required by said subdivisions, and authorizing the Mayor to Execute Said Agreements, C) Resolution ! 97"7 ¡, Approving the Supplemental Subdivision Improvement Agreements for Tract No, 96-04, Otay Ranch Village One, Neighborhoods R-7 and R-I 0, requiring Developer to comply with certain unfulfilled conditions of Resolution Number 18398 and authorizing the Mayor to Execute Said Agreeme t SUBMITTED BY: Director of Public Works REVIEWED BY: City Manag~'o() (4/5ths Vote: Yes_NoX) 4 The Council is requested to consider the approval of an agreement for deferring the development of certain lots within Neighborhoods R-7 and R-10 of Otay Ranch SPA One, Village One. The agreement provides that Shea Homes will defer construction of 90 homes in R - 7 and 7 I homes in R-lO, in order to obtain final map approval for both Neighborhoods at this time, The total number of non-deferred units is 93, which is within the threshold limits for SPA One set by the Olympic Parkway Agreement. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, RECOMMENDATION: That Council approve the Resolutions: A) approving the deferral agreement concerning certain lots in Neighborhoods R-7 and R-I 0; B) approving the Final "B" Map and the "B" Map Subdivision Improvement Agreements; and B) the Supplemental Subdivision Improvement Agreement associated with these Final "B" Maps for Village One of the Otay Ranch Project. DISCUSSION: On November 19, 1996, by Resolution No, 18398, the City Council approved a portion of the Tentative Subdivision Map for Chula Vista Tract 96-04, Otay Ranch SPA One including all of Otay Ranch Village One, On June 16, 1998, the City Council approved the Otay Ranch Village One "A" Map by Resolution 19043 and the Supplemental Subdivision Improvement Agreement for that map /3--/ Item Meeting Date 5/25/99 by Resolution 19044 ("A" Map Agreement), The Final "A" Map created "superblock" lots 9,13,14 and 15 corresponding to Tentative Map Neighborhoods R-7 and R-IO, These neighborhoods are located north of East Palomar Street between the Village One pedestrian paseo and the McMillin Lomas Verdes project The owner/builder, Shea Homes, is requesting the City Council approve a deferral agreement applied to 161 lots within the two [mal maps, The deferral is required for the Otay Ranch Project to remain within the improvement phasing requirements of the Public Facilities Finance Plan (PFFP), The recently approved Olympic Parkway Construction and Financing Agreement further defined the PFFP improvements phasing plan by establishing final map approval thresholds for each of the two ownerships within SPA One based upon completion of the Olympic Parkway Agreement improvement stages, The Stage One threshold set a maximum of 899 final map equivalent dwelling units (EDUs) within the Otay Ranch Company ownership, There have been 737 final map EDUs approved to date within the Otay Ranch ownership leaving 162 EDUs to be allocated between Village One and Village Five, Otay Ranch has reserved 47 EDUs for Units I, 2 & 4 in Village Five, That leaves 115 EDUs available for all other subdivisions, including R-7 and R-IO, within Otay Ranch ownership that may be approved prior to completion of the Stage Two improvements which would add 195 more EDUs, bringing the total Otay Ranch Company threshold to 1094. Shea Homes has executed Subdivision Improvement Agreements and have provided bonds to guarantee the construction of the public improvements within these neighborhoods, A Supplemental Subdivision Improvement Agreement has been executed by Shea Homes and Otay Project, LLC., the Master Developer of Otay Ranch, Village One, The supplemental agreement addresses off-site improvements within the adjacent public streets and those public improvements identified in the Public Facility Finance Plan that are triggered by the approval of these final maps, The final maps for these subdivisions have been reviewed by the Public Works and Planning Departments and found to be in substantial conformance with the approved Tentative Map, Approval of the maps and associated agreements constitutes acceptance by the City of all assignable and irrevocable general access and utility easements and wall easements granted thereon and acknowledgement of open space dedication, The Developer has secured its share of the development portion of the Park Acquisition and Development (PAD) fees for SPA One neighborhood and community parks, The Developer has previously submitted an Irrevocable Offer of Dedication of Fee Interest for its portion of the land acquisition obligation for community parks with the approval of the first final "B" Map in Village One (Neighborhood R-3, approved 10/6/98, Resolution No. I9210), The Telegraph Canyon Drainage Basin DIF in the amount of $293,202,53 has been paid, The Developer has bonded for and agrees to complete all on and off-site street improvements required for the approval of these "B" Maps within two years following map approval, or sooner if construction permits for the required improvements have been issued. All other applicable tentative map conditions have been met The conditions of approval of Resolution No, 18398 (Tentative Subdivision Tract No, 96-04) that are satisfied by the Supplemental Subdivision Improvement Agreements (SSIA) are as follows: Nos, /3"2 . ...-. Item Meeting Date 5/25/99 1,3,4,5,8,9,10,11,21,22,27 and 99, The complete list of conditions of approval are included as Schedule 1 of the SSIAs which is included as an attachment to the SSIA Resolution. None of the provisions of the SSIAs included therein are considered to be substantive changes from the tentative map conditions, FISCAL IMPACT: None to the City, Developer and/or builder has paid all costs associated with the proposed "B" Maps and all Agreements associated therewith, Attachment!1: LMinutes of 11119/96 (Resolution No. 18398) 2,Plats-Chula Vista Tract 96-04, Otay Ranch SPA One, Village I, Neighborhood R-7 and R-IO H:\HOMEIENGINEERIAGENDA \OR-7& I 0 _BMAP.DOC (W) DRS/drs File No. 0600,80-0R139F,140F /J--) Minutes November 19, 1996 ATTACHMENT 1 Page 4 This being the time and place as advertised, the public hearing was declared open. . Rod Davis, 233 Fourth Avenue, Chula Vista, CA, representing the Chula Vista Chamber of Commerce, supported the abatement, The Chamber asks that Council and staff look into this issue next year in terms of competitiveness, because it is sometimes not enough to maintain the rate if everybody else lowers theirs. There is a risk of losing businesses because it suddenly becomes cheaper to move next door. Councilmember Rindone stated whether the business license is maintained, raised or lowered, the current scenario limits the Council in realistic options, He requested bringing back the master fee schedule for 1998 to reflect the proposed rates of 1992, which is the first year it was abated. He requested staff not OIùy consider the abatement next year. but to consider revamping so if there is an adjustment and a significant business up-turn, there is an option for Council to reflect it in a modest rate adjustment RESOLUTION 18501 OFFERED BY COUNCILMEMBER RINDONE, reading of the text was waived, title read, passed and approved unanimously. (11/19/96) 10, PUBLIC HEARING ZA V-96-12; APPEAL FROM HHHHH PLANNING COMMISSION DENIAL OF A REQUEST FOR A VARIANCE TO INCREASE THE HEIGHT OF A ROOFTOP SIGN FROM 35 FEET TO 42 FEET FOR THE COMMERCIAL BUILDING LOCATED AT 396 "E" STREET IN THE CoT TIlOROUGHFARE COMMERCIAL ZONE - MARTIN ALTBAUM - This is an appeal from the Planning Commission's denial of a request for a variance to allow the construction of a rooftop sign to 42 feet in height for the commercial building located at 396 "E" Street, within the C-T Thoroughfare Commercial zone. The C-T zone limits the height of rooftop signs to 35 feet above grade, At the renuest of the 90olicant. staff recommends that the DubUc hearinl! be continued to the meetin~ of 12/10/96. (Director of Planning) (11/19/96) MSC (Horton/Alevy) to continue to the meeting of 12/10t96, approved 4-0-0-1 with Rindone abstaining. (11119/96) I LA, RESOLUTION 18416 APPROVING A RESOURCE HHHHH CONVEYANCE AGREEMENT FOR THE OTAY RANCH SPA ONE, TRACT 96-04 - (This is a related item. but doe. not rennire a DubUc bearine) (11/19/96) B. RESOI,UTION 18417 APPROVING AN INDEMNIFICATION HHHHH AGREEMENT WfTII VILLAGE DEVELOPMENT FOR TRACT 96-04 - ffhis is a related item. but does not renuire a DubUc hearim!) (11119/96) -+- c. PUBLIC HEARING PCS 96-04: CONSIDERATION OF A HHHHH REVISED TENTATIVE SUBDIVISÍON MAP FOR THE OTAY RANCH SPA ONE, TRACT 96-04 GENERALLY LOCATED SOUTH OF TELEGRAPH CANYON ROAD BETWEEN PASEO RANCHERO AND THE FUTURE SR-125 ALIGNMENT AND EXCLUDING 288 ACRES IN ASSESSOR PARCEL NUMBER (APN) 642-060-11 AND A PORTION OF APN 642-080-11 - Adopt a Second Addendum to FEIR 95-01 and recertify FEIR 95-01 and the First Addendum for the Otay Ranch SPA One and Tentative Subdivision Map for Village One and Phase I-A of Village Five of the Otay Ranch SPA One, Chula Vista Tract 96-04, in accordance with the findings and subject to the conditions contained in the draft resolution. Staff recommends approval of the resolutions, (Otay Ranch Manager) Continued from the meeting of 11/12/96. (11/19/96) D, RESOUITION 18398 ADOYfING THE SECOND /3 ,'/ -- ----"--- Minutes November 19, 1996 Page 5 ##### ADDENDUM TO AND CERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT FEIR 95-01 (SCH #95021012) AND FIRST ADDENDUM READOPTING TIlE STATEMENT OF OVERRIDING CONSIDERATIONS AND TIlE MITIGATION MONITORING AND REPORTING PROGRAM FOR TIlE FEIR AND APPROVING A REVISED TENTATIVE SUBDIVISION MAP FOR PORTIONS OF TIlE OTAY RANCH SPA ONE, CHULA VISTA TRACT 96-04, AND MAKING TIlE NECESSARY FINDINGS AND CONTINUING ALTERNATIVE TENTATIVE MAP PROPOSALS (11119/96) Jerry Jamriska, Otay Ranch Special Projects Manager, gave a presentation regarding the Otay Ranch development. Councilmember Rindone asked why was Section 7,1 of the agreement changed to reflect the B Map level, as it was not recommended for any other developer, Ann Moore, Acting City Attorney, said that condition of the development agreement was tied to the conditions of the tentative map approval, such as Condition 108, which works hand in hand with one another. Bonding is required when the improvements are triggered by the PFFP, Mr, J amriska stated the improvement phasing schedule required to be submitted will identify all of the backbone facilities, and before the City Engineer approves the first fmal B map, that condition will identify all the required backbone facilities, as well as a plan for the financing, The backbone facilities would not be triggered by the conveyance of those lots to a different property owner, The trigger points for the backbone facilities occur when the fmal B map is requested, John Lippitt, Director of Public Works, gave an example of EastLake Greens, that they came in with an overall A map for the backbone streets and some of the backbone facilities. They were required to bond for those streets within their facilities and were required to provide some off-site improvements, The City would have the right to withhold building permits if they weren't done, and it was to conform with our level of service ordinance and the growth management ordinance, Those wouldn't have to be bonded until such time as they were approaching those thresholds. Mayor Horton didn't believe there was ever an effort to have the primary land owners or developers sell at a particular stage, and as to what is currently being proposed, there was never a movement to do that with Eastlake or Rancho del Rey, so it may not apply in this situation. She stated the concern was addressed in the report when it talked about the different stages; however, it is her understanding that staff incorporated the protections that the facilities will be built. Ms, Moore said Section 7,1 shifts the bond requirement to the master builder, that they will be responsible for all the backbone facilities regardless of the merchant builder, There would be a number of issues and concerns if we were to require merchant builders coming in with small projects to build or construct major backbone facilities, Section 7,1 puts it back to the master builder for their responsibility, and it is her understanding that bonding for the backbone facilities has occurred at the A map stage, In this case, it's being done at the B map stage, except for two improvements that are listed in Condition 108, Councilmember Moot asked if the merchant builders would provide the bonding or would Village Development obtain the bonding before the City allows a sale to the merchant builders, Mr, J amriska said there were four basic items that needed to be bonded prior to the first phase of the backbone facilities, and it is anticipated it will be the requirement of the master builders. All subsequent backbone facilities will probably fall upon the burden of either the master builder andlor the merchant builders, Councilmember Padilla didn't think there was a distinction there and as far as breaking down what the obligation level would be at the guest builder level. You either have a complete obligation to guarantee 100 percent of the backbone facilities at the A map stage or you have 100 percent transfer or relief of that obligation to the successors in interest. 1:;-5 . ---...- --._"-_._--_._._._--~.- Minutes November 19, 1996 Page 6 Ms, Moore said the bonding is the safest guarantee the City can have, and having the bonding at the A map stage is a more secure position for the City than doing it at later stages. Mr. Lippitt said it was staff's opinion as long as there was a condition in there, they can't do any B maps or any developments because this has to be resolved. It is a shift in time, but not a shift in development staging between Maps A and B. Councilmember Rindone said if we change the time sequence of this and there is some question of responsibility that when a merchant builders comes in and cannot afford that, the master builder doesn't have the responsibility, He did not hear the assurance that the City increased its protection, because the merchant builders will not have the resources the master builders would have, Mayor Horton said it was her understanding from the staff report that it is the sole responsibility of Otay Ranch LId" or its successors in interest, to provide or fInance the cost of the backbone facilities required in any fmal map. including both A and B maps. Ms, Moore said it was correct and what staff could do to clarify it would be to insert specifIc language in Section 7.1 that states they shall provide the bonding, Councilmember Padilla asked what were some of the potential issues if the City allowed the bonding to be at the B map stage, as opposed to the A map stage, Ms. Moore said if you require the bonding at the A map stage, you have the bonding up front. If something were to happen to the master builder, we would have the bonding to go after in order to construct the improvements, If we wait until later stages, even though there is that provision in the agreement that deals with its successors in interest, there is always the potential that we might not be able to get the master builder to actually construct the backbone facilities, and we won't have bonding at that point because it was done at a later stage in development. We would then try to go to the merchant builder, which would be diffIcult to have the merchant builder actually construct major backbone facilities, Councilmember Alevy said in reading the minutes of the Planning Commission, Councilmember-elect Mary Salas expressed the specifIc concerns that the master builder is forever obligated to do the backbone infrastructure should they not survive lienholders to become obligated to the backbone infrastructure, etc, and the timing is the issue we're talking about, but the reality is that the master builder is required to be able to bond to do that. Councilmember Rindone said the requirements of funding the backbone facilities is a greater risk. In order to try to compensate that risk, we've put other safeguards in the agreement. Council has the responsibility to ensure that the backbone facilities are built. He did not see why the old rules were changed, because they worked well and provided adequate safeguards, He said the bottom line is that with the size of the Otay Ranch and the projected buildout, we don't have the assurance from the very front that the backbone infrastructures are in place, and it will set the wrong tone for this development. If we had required the bonding at the very beginning as done in the past, we wouldn't have to come up with all of these conditions, Ms. Moore said according to the development agreement, if language is added to specifIcally deal with bonding, it would require Village Development, and its successors in interest, to provide the bonding. There is also a provision in the agreement that talks about subordination so it requires the lenders to subordinate to the development agreement. It is not the same as having the bonding up front, but there is a provision that holds Village Development to provide the facility and the bond, Councilmember Padilla said this issue presented itself at the request of Village Development. There is a reason economically why they want to be able to sell off parcels without making the guarantees up front on this size of a SPA or at the A Map stage, but the question is whether that is what Council wants, The question here is this was changed at the request of the applicant, there are reasons for that and the question for Council is whether or not when we get /:J-t, Minutes November 19, 1996 Page 7 to the development agreement and we look at the tentative maps, whether we will be satisfied, and we have enough comfort with this level of a guarantee. There is no question that the manner in which staff is recommending is less security to the City than if we required the bonds at the A map stage. · Kim Kilkenny, 11975 El Camino Real, San Diego, CA, representing Village Developments, stated that City staff and Village Development staff put a lot of time to ensure the problems that occurred in St Claire are not experienced in Otay Ranch. Village Development is seeking to provide security consistent with the PFFP, and that is when a phase of development requires an improvement in order to serve that phase, then adequate security has to be provided, The development agreement states that Village Development is the entity responsible, As a general rule when you have a tentative map approved, and that's what Village Development is seeking in this hearing, there is not an obligation in State law or Council policy that an applicant follow-up a tentative map approval with an A map. What is different about this project is through the development agreement came a proposal from staff that Village Development be required to do an A map on the whole of the SPA, village by village. If you look at the conditions of approval, they have to be bonded at the twice their estimate, which is $160 million, If Council were to pursue the common practice of allowing Village Developments to do A maps on a lesser area, Village Developments would be willing to provide the security on the improvements associated with that lesser area, If they do an A map on the whole of the vi11age or an A map on the whole of the SPA, then the bonding security requirements becomes burdensome because the tentative map is so large, If you look at the whole of development agreement in conjunction with the tentative map requirements, the City is assured that facilities will be built in a timely manner, the St Claire experience will not re-occur, and the cost of the facilities will be equitably shared amongst all benefiting properties in the project Councilmember Rindone asked if staff considered Mr, Kilkenny's suggestion of the A map for a small portion of the project to ensure the backbone facilities were part of the A map, Councilmember Moot stated staff's proposal was a better guarantee for the City, Mr. Lippitt replied it was correct Staff tried to come up with a mechanism that would meet the developer's needs and also assure the City's compliances, Richard Rosaler, Seuior Planner, continued staff's presentation regarding the Otay Ranch project This being the time and place as advertised, the public hearing was declared open, · William Lieberman, 852 Blackwood Road, Chula Vista, CA, Director of Planning and Operations with the Metropolitan Transit Development Board, supported the project He expressed concerns relating to guarded entries and densities in the villages, · Rick Williams, 3130 Bouita Road, Chula Vista, with Point Builders, spoke on behalf of West Coast Land Fund, owner of the 288-acre parcel spanning Villages 1 and 5. West Coast supports staff's recommendation, although they would like to perhaps build the concept to defer any approvals in Village 5 until the City, West Coast, and Village Development have an opportunity to meet and explore issues, · Kim Kilkenny, representing Village Development, supported staff's recommendation with the exception of modifying a portion of the tentative map in Village 5 to encompass all of their ownership in Village 5, with the exception of two specific parcels. . . . Councilmember Padilla left the dais at 11:11 p.m. · · · · Kent Dayden, 11975 El Camino Real, San Diego, CA, representing Village Developments, gave a presentation regarding Otay Ranch and referred to the report by Village Development Mr, Kilkenny concluded with the issue of the scope of the tentative map, He indicated Village Development supports staff recommendation with the single modification that the scope of the tentative map should include Village /3;? Minutes November 19, 1996 Page 8 Developments ownership in Village 5, except for two parcels that immediately abut West Coast property which is Parcel R - 29 and Parcel P- 3, West Coast has previously indicated they would like to flip a school or park onto our ownership, The portion of the property in R-29 and P-3 which should be excluded from the map is approximately 10 to 15 acres, an ample size to flip those kinds of uses, not that they are accepting or advocating that, but at least it provides the possibility, There being no further speakers, the public hearing was closed. Councilmember Moot expressed concern of the practical effects of delaying the bonding until the B map level. He asked what assurances were in place that the backbone infrastructures would be constructed. Mr, Kilkenny answered that the development agreement contains a statement that until released by the City Council, Village Development is obligated to provide for the backbone infrastructure, The development agreement also requires the provision of a subordination agreement by the lender on the property in the event they take title to the property, they are bound by the provisions of the development agreement, including the backbone provision. There are a couple of levels of assurances in this project. The City of Chula Vista has a very aggressive development impact fee program and each building permit that goes through the process has to pay for those development impact fees for a whole array of facilities, and the City will constantly have the flow of revenue to make sure each individual parcel pays for its fair share of the facilities, What both the development agreement and tentative map have are requirements that security be in place through bonding, but there are other mechanisms to ensure completion of the facility in a timely manner, Councilmember Alevy asked why the project did not include speed bumps, because it was different from the policy Council enacted in recent months, Mr. J amriska explained the speed bumps were not provided in response to requests by the Fire Chief and Chief of Police who felt any impediment to the traffic flow would hinder their quick response. Councilmember Alevy asked staff to address the impact of MSCP on a County-wide basis on this particular project, and what are the impacts of Proposition 218 on this project. Mr, Lippitt said one impact would be if we had the open space district to maintain the open space around the village, If there are gated communities, everything private within the gated community would be maintained by the homeowners' association, and it would not be regulated at all by Proposition 218. For the portion probably along the slopes of Telegraph Canyon Road and Orange A venue with issues such as drainage, those could be and probably would fall under the provisions of Proposition 218 which means the initial hearing would be set up before people moved in. If the people had already moved into the project before the assessments, there would have to be a vote, Councilmember Moot expressed concern about guarded communities. He did not favor staff's recommendation and doesn't see the big difference whether it has a gate or guard, because the concept is still the same, He could not see valid reasons to restrict any citizen in the City of Chula Vista from driving in and around this particular area, Councilmember Rindone was concerned that guarded or gated communities sends the inappropriate message of what this project was originally conceived to be. When you have artificial barriers and even the insinuation of those barriers, even if they are guards that are not there during the day, it creates a difference sense of ambiance, We want to have the presence this is a good community and all parts have good protection and safety, not just those who can afford to be in the single-family or higher residential facility, He did not favor guarded communities in any form. Mayor Horton indicated that gated communities were common, and there were two areas in Rancho del Rey which Council did not oppose, There are mobile home parks behind gates, because it is the lifestyle the particular mobile home parks wanted, She doesn't think it is exclusive; it is a choice and marketing tool for this project. / ']--g/ Minutes November 19, 1996 Page 9 Councilmember Alevy referred to an article "The Next Eden," from California Lawver magazine that talked about the benefits of having gated communities, Earlier this evening Council spoke at length regarding section 7,1 of the development agreement and the backbone infrastructures, and it was clear that Council did not want to create a situation in this development that was not required of other developments, He indicated we need to turn that around with respect to gates, because we have allowed gates in other parts of the City. We have private single-family residence developments with gates in both Eastlake and Rancho Del Rey, and he stated Council should be consistent. If we are going to hold Rancho del Rey and Eastlake to the same requirements on other issues as Village Development, then we should be consistent and do the same with giving them the opportunity from a marketing standpoint to allow guarded portions of their development. MSC (Horton/Alevy) to aUow gate closures from dusk to dawn, failed 2-2-1 with Moot and Rindone opposed and Padilla absent. (11/19/96) MSC (AIevylHorton) to allow some facilities guarded from dusk to dawn, approved 3-1-1, with Rindone opposed and Padilla absent. (11119/96) RESOLUTIONS 18416, 18417 AND 18398 OFFERED BY COUNCILMEMBER RINDONE, with the exception of taking the issue of the bonding separate which is Item 12, approved 4-0-1 with Padilla absent. (11119/96) 12. PUBUC HEARING ADOPTING OTAY RANCH ##### PRE-ANNEXATlON DEVEWPMENT AGREEMENT WITII VILLAGE DEVELOPMENT - An amendment to the development agreement to further guarantee infrastructure improvements where the developer wants to create parcels for sale prior to fmalizing the final subdivision map. The amendment also addresses future problems with regard to any debt payment that might be levied to make public improvements or should development be only partially completed on any particular project due to any stoppage of work especially dne to a bankruptcy action, Staff recommends Council place the ordinance on first reading, (Deputy City Manager, Planning Director, and Otay Ranch Manager) Continued from the meeting of 1l/12/96. (11/19/96) ORDINANCE 2691 AMENDING OTAY RANCH PRE-ANNEXATION ##### DEVELOPMENT AGREEMENT BETWEEN OTAY RANCH, L.P., A CALIFORNIA LIMITED PARTNERSHIP, VILLAGE DEVELOPMENT, A CALIFORNIA GENERAL PARTNERSHIP, AND TIlE CITY OF CIllJLA VISTA (find readine\ (11/19/96) ORDINANCE 2691 OFFERED BY COUNCILMEMBER MOOT, including adding the bonding language to section 7.1, approved 3-1-1 with Rindone opposed and Padilla absent. (11/19/96) ORAl" COMMUNICATIONS ##### . Bill Brasher, 1755 Old Gillette Avenue, Irvine, CA, representing Baldwin Builders, gave an update with the St. Claire Crossing development. (11/19/96) BOARD AND COMMISSION RECOMMENDATIONS None submitted, ACTION ITEMS 13, RESOLUTION 18494 DISSOLVING TIlE COUNCIL ##### APPOINTED INTERIM BECA BOARD - On 8/22195, Council approved an Interim BECA Advisory Board represented by 1 t organizations/individuals, These organizations/individuals were recommended by staff to provide a mix of public and private entities who are stakeholders in the regioual BECA alliance, The Board's contributions /3,9 ~I~ ~~ ~I 6~ ~- II) §c ~ ~ ~ .... tS r::: .... ~ .s:: ~ ~ Q) r::: 0 Q) ~ ~ .... .... i .... .. ~ ~ F Q) 0 ~ ~S ~ ~ <C (¡j ~ ~ ~ ~ ~ ;>: m 0 .. ~ w a: / .3.-- It; ~ H! ~I~ ~~ ~I 6~ t.. I ~ 'tS 0 0 of 0 ~ .~ a:I ~ N ... Q) c 8 CI) E Q) .c ~ u ns - ... ~ - ;: .... F Þ. , (t~ , 2 .s , I~_-,-- :!1 , II, ~ " - . , , , , . (jj ~ ~ r.ri ~ d ~ '" >,: tc I :J -II ~ ~ æ ------ ~I¡¡ ~~ ~¡ 6~ C ""1 I D::; 'tS 0 0 of 0 .Q .s::: 0) .... ~ Q) c:: u 0 N Q) .. ~ C ~ "- E ~:;:: .c F~ U ca ~ .. ë (ts ~ (fj ~ cri ~ ~ d ~ '" ~ 0 /] '12 ~ ~ B: RESOLUTION NO. ) 9'1 ? f RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEFERRAL AGREEMENT WITH SHEA HOMES AND OTAY PROJECT LLC CONCERNING THE DEVELOPMENT OF CERTAIN LOTS IN NEIGHBORHOODS R-7 AND R-10 OF OTAY RANCH SPA ONE, VILLAGE ONE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Shea Homes and Otay Project LLC are requesting the city Council to approve a deferral agreement applied to 155 lots within the two final maps; and WHEREAS, the deferral is required for the Otay Ranch Project to remain within the improvement phasing requirements of the Public Facilities Finance Plan, NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve a Deferral Agreement with Shea Homes and Otay proj ect LLC concerning the development of certain lots in Neighborhoods R-7 and R-10 of Otay Ranch SPA One, village One, 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 and directed to execute said Agreement for and on behalf of the city of Chula vista, Presented by Approved as to form by Cc-~~ John P, Lippitt, Director of John M, Kaheny, City Attorney Public Works H:\home\attorney\reso\deferral.710 /3/9 / / Re22=d~ng Reques:ed By C:~v of Chula Vista When Recorded Return to ) I The City of Chula Vista I 276 Fourth Avenue I Chula Vista, CA 91910 I Att:r.: City Attorney I DEFERRAL AGREEMENT AND DECLARATION OF COVENANTS RUNNING WITH THE LAND THIS DEFERRAL AGREEMENT AND DECLARATION OF COVENANTS RUNNING WITH THE LAND ("Deferral Agreement") is made and entered into as of this day of May, 1999, by and between Shea Homes Limited Partnership, a California limited partnership, ( "Builder" ) , Otay Project,LLC a Delaware limited liability company ("Developer" ) and the City of Chula Vista, a municipal corporation ("City") , with respect to the following facts: RECITALS A, Builder is owner of real properties within the Otay Ranch, Village One Spa I commonly known as Otay Neighborhoods R-7 and R- IO. B, Builder wishes to develop certain portions of real property within Otay Neighborhood R-7 and R-I0 ("Property" ) while maintaining deferral on certain other portions of Neighborhood R-7 and R-I0 as more particularly described in Exhibits "A-I" and "A-2" respectively, attached hereto, Co property constitutes a portion of that certain real property commonly known as Otay Ranch, SPA I located within the City of Chula Vista, California, as shown on Exhibit "B" attached hereto and incorporated herein, D, The PFFP contains provisions which require the Developer and Builder to construct certain streets and related improvements in conjunction with development of the property in order to ensure adequate local and regional traffic circulation system capacity, These streets and related improvements include a portion of Olympic Parkway from I-80S to State Route 125, E, The Public Facility Financing Plan ("PFFP") , was amended by the City on October 6 , 1998, which required property owners within SPA I to agree to construct and secure the construction of roadway improvements, including portions of the Olympic Parkway Improvement, prior to approval of the final map that triggers such improvements, More particularly, Table 11 of the PFFP indicates that certain phases of the Olympic Parkway Improvement and other related roadway improvements must be secured prior to approval of ~ /3//---;2. final maps containing a certain number of cumulative Eq~ivalen~ Dwelling Units ("EDUs") as the term "EDU" is defineå in the PFFP. F, In order for Developer to continue to comply with the PFFP requirements and to receive final map approval for the benefit of all existing property owners within SPA I, Developer consenteå to the City's amendment of the PFFP, dated April 20,1999, ("PFFP Amendment") that now allows for final map entitlements to be approved containing certain increments of Equivalent Dwelling Units as allocated to each Improvement Stage of the PFFP Amendment, once all of the requirements of the applicable Improvement Stage have been satisfied, For example, once all of the requirements of Improvement Stage 2 of the PFFP Amendment ("Improvement Stage 2") have been satisfied, final maps containing a total number of 1995 Equivalent Dwelling Units may be approved by the City, In addition, the PFFP Amendment also assigns to the Developer a portion of the maximum Equivalent Dwelling Units in SPA I at each Improvement Stage, as set forth in Table II-A, a copy of which is attached hereto as Exhibit "B". G, Developer, the City and other third parties wanted tc assure the financing and construction of the Olympic Parkway Improvement and related roadway improvements, comply with the requirements of the PFFP Amendment, and continue the orderly development of real property within SPA I, To that end, the City, Developer and others entered into an agreement by Resolution No, 19410 to establish a system for the financing and construction of the Olympic Parkway Roadway Improvement and other related transportation improvements to allow the approval and recording of additional final maps for real property within SPA I, The execution and performance of the Olympic Parkway Agreement allows the approval and recording of additional final maps within SPA I to proceed, by "Improvement Stages" as set forth in the PFFP Amendment, . H, Builder wishes to defer construction of homes on lots 1- 44, 51-78, 108-120, 124-127 and 131 within Otay Ranch, Village One Neighborhood R-7 and lots 1-3, 53-55, and 59-123 within Otay Ranch, Village One Neighborhood R-10 ("Deferral property") in order to be in compliance with the PFFP Amendment and obtain final map approval for both of Otay Ranch, Village One Neighborhoods R-7 and R-10 and to construct residential developments within Otay Ranch, Village One Neighborhood R-7 and R-10 on the remaining non-deferral property, NOW, THEREFORE, in consideration of the covenants, terms and conditions herein contained, and in reliance thereon, the parties agree as follows: 1, Covenant to Withhold Development, Builder agrees to withhold development upon, and to defer a request for any building permit with respect to any structures as to the Deferral Property, 2 / ;1193 described on Exhibit "A-I" and "A-2", unless and until Developer or other third parties satisfy all of the requirements of the Improvement Stages of the PFFP Amendment as indicated below and as set forth in Table ll-A, , Builder and Developer understand and agree that the City shall not issue any building permits for the Deferral Property until and unless said deferral has been released as set forth in paragraph 2 below, 2, Termination and Release of Deferral, a, Once the requirements of Improvement Stage 2 have been satisfied, as determined by the City in its sole discretion, the City shall release from this Deferral Agreement 68 equivalent number of EDUs within the Deferral Property, The 68 Equivalent Dwelling Units released by the City within the Deferral Property shall be counted as a part of Developer's share of the total number of EDUs allocated within Improvement Stage 2, This Deferral Agreement shall remain in full force and effect for the balance of the Deferral Property, until the City determines in its sole discretion, that the requirements of Improvement Stage 3 of the PFFP Amendment (Table ll-A) have been satisfied and the remaining portion of the Deferral Property is released as set forth below, b, Once the requirements of Improvement Stage 3 have been satisfied, as determined by the City in its sole discretion, the City shall release from this Deferral Agreement 93 equivalent number of EDUs within the Deferral Property, The 93 Equivalent Dwelling Units released by the City within the Deferral Property shall be counted as a part of Developer's share of the total number of EDUs allocated within Improvement Stage 3, c, When the Deferral Property is eligible for release as provided for herein, Developer, Builder or their assignees or successors in interest, may request that the City release specific lots from this Deferral Agreement, such requests shall be subject to the approval of the City Engineer, which approval shall not be unreasonably withheld, d, Upon any release as provided herein, the parties agree to execute all documents and take all other actions reasonably necessary to remove the effect of this Deferral Agreement over the applicable property. e, Developer acknowledges that said release of this Deferral Agreement may prevent or impact Developer's ability to obtain other final maps as may be provided by Improvement Stage 2 and 3, In addition, Developer and Builder acknowledge and agree that the Property is subject to the provisions of the PFFP Amendment, including Table II-A, and that Developer and Builder shall comply with said PFFP Amendment, including Table II-A, 3 , Covenant Runninq with Land, It is the intention of the 3 1:14--,/ parties that this Deferral Agreement shall run with the Property and be binding upon the successors and assigns to the Property, The parties agree that the provisions of this Deferral Agreement touch and concern the Property, All of the provisions, agreements, rights, powers, covenants, conditions, restrictions and obligations contained in this Deferral Agreement shall be for the term set forth herein, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, executors, administrators, successors, grantees, assigns, devisees, representatives, lessees and all other persons acquiring the Property. 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, remains or are owners of any particular land or interest therein, It is expressly agreed that each covenant to do or refrain from doing the acts specified herein on the Property is for the benefit of the City and the Property and is a burden upon the Property, (ii) runs with the Property and (iii) shall benefit or be binding upon each successive owner during its ownership of the Property, or any portion thereof, and each owner having an interest therein derived in any manner through any owner of any Property or any portion thereof, 4. Indemnification, Developer and Builder further understand and agree that City, (as "Indemnitee") or any officer or employee thereof, shall not be liable for any damages, including loss of value of the Builder's property due to this Deferral Agreement. Developer and Builder further agree to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, costs and expense (including, without limitation, reasonable attorney's fees) or loss because of or arising out of this Deferral Agreement, Builder hereby releases, agrees to indemnify and hold harmless the city and Developer, and each of their officers (including elected officials), employees, agents and members (" Indemnitees") from and against any and all claims, suits, actions, or other proceedings to which the Indemnitees are exposed and from and against any and all losses, expenses, expenditures, costs, judgments, decrees, and orders (including orders for the payment of attorney's fees and costs) to which the Indemnitees are exposed or which the Indemnitees have incurred relating to, caused by, or resulting from the Indemnitees' preparations, review, approval or implementation of this Deferral Agreement, 5, Recordation, This Deferral Agreement shall become effective and binding upon the parties and their respective successors-in-interest in accordance with the provisions contained herein upon recordation of this Deferral Agreement in the Office of the County Recorder of the County of San Diego, California, 4 J:J/J~.5 6, Miscellaneous, This Deferral Agreement may be executed in counterparts, each of which, taken together, shall be deemed to be one fully executed original, All prior and contemporaneous representations, negotiations and understandings of the parties hereto, are hereby superseded, This Deferral Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. 7. Governinq Law, This Deferral Agreement shall be governed and construed in accordance with the laws of the state of California, 8, Notices, Unless otherwise provided in this Deferral Agreement or by law, any and all notices required or permitted by this Deferral 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 United States mail certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Deferral Agreement, A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party, If to Citv: City of Chula vista Department of Public Works/Engineering Division 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Engineer If to Otay proiect: Otay Project,LLC 350 West Ash Street, Suite 730 San Diego, CA, 92101 Attn.: Kim John Kilkenny Fax: (619) 234-4088 If to Shea Homes: Shea Homes Limited Partnership 10721 Treena Street, Suite 200 San Diego, CA 92131 Attn: Richard Gustafson Fax: (619) 549-0112 9, Captions, Captions in this Deferral Agreement are 5 / J~ /¡, inserted for convenience of reference and do not define, describe or limit the scope or intent of this Deferral Agreement or any of its terms, 10, Recitals; Exhibits, Any recitals set forth above and any attached exhibits are incorporated by reference into this Deferral Agreement, 11, Authority of Siqnatories, 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 Deferral Agreement, and that all resolutions and/or other actions have been taken so as to enable said signatory to enter into this Deferral Agreement, 12, Modification, This Deferral Agreement may not be modified, terminated or rescinded, in whole or in part, except by written instrument duly executed and acknowledged by the parties hereto, their successors or assigns, and duly recorded in the Official Records of the San Diego County Recorder's Office, 13. Preparation of Deferral Aqreement, No inference, assumption or presumption shall be drawn from the fact that a party or its attorney prepared and/or drafted this Deferral Agreement, It shall be conclusively presumed that all parties participated equally in the preparation and/or drafting of this Deferral Agreement. (NEXT PAGE IS SIGNATURE PAGE) 6 / J4---? [PAGE ONE OF TWO SIGNATURE PAGES TO DEFERRAL AGREEMENT AND DECLARATION OF COVENANTS RUNNING WITH THE LAND] IN WITNESS WHEREOF, the parties hereto have executed this Deferral Agreement as of the date first set forth above, CITY OF CHULA VISTA Mayor Attest: Susan Bigelow, City Clerk Approved as to Form: -£:~ ~f;J John , Kaheny, cit~orney (NEXT PAGE IS PAGE TWO OF SIGNATURE PAGES) 7 I J/1/7 --~-".- 0512O~~t. 2~j¡J9Jl:a. 8':~2AM.9 8lT~E__OT}Y RANCH CQuu VISTA ENGI~EERING NO. 2335 P. 10 -' [P.IlGI1 TWO 01' DO S:ICDATVd PAGWS TO DBFBRKAL ACildER_t AJIJ) DBCIoUA'r:IOll 01' COVEIDBTS Rvn:DIG .:I'I'H TlIB LAJItI] DEVELOPER: OTAY PROJECT,LLC, a California Limited Liability Company Ranch Development, LLC, Limiced LiabilitY Company, member By: Date: ~cr'l Its: y((~.... ~#9..tC»~ BUILDER: By: SHEA HOMES LIMIT2D ~ARTNERSHIP a California Limited partnership, By. J.P. SHEA CO" INC. , a Nevada corporation, its general partner By: Date: Its: By: Date: Its: DAT2D ; , 1999 - (ATTACH NOTARY ACUOWLZDGJOBTS) 8 ) 3~..-/t) -.-....- ._<--- - - ----- PHONE NO. : 619 225 8681 Ma~. 19 1999 05:01PM P2 FROM: Rich Gustafson \.,nuJ.,..1. "l"lA 2¡~~I,¡oU'UlHl"b IdIUU9 1,1"" "III IIlII "J.;ü) .Lo), ,"<.I J.'.n.A UJ." LIlli.! "'.I. t.L [PAGE TWO OJ' '1'WO S:E(;J 'ATU1UI: PAIiiBS '1'0 ¡¡..URAL AGJlII::&:D1III'l' A:Im J:lBCI.AJtA'r:IOB OJ!' COVUAJl'r.5 allll1lIJlG W:ED ~ LAHÞ IJiVi1LOE'ER: OTAY PROJJlCT.LLC, a California Limited úia~ili~y company By: Otay Ranch ~.velopme~t, ~C. a Pelawi~e Limited Liability Company, member By: D.te, It.; BUILDER: By: SHSA HOMES LIMITED PARTNERSHIP a C&lifornia Limited Partnership, BY: J.F. SHEA CO., INC, , a N~.d. Co~o~ation, its genéral partner -0phr ":: 7"~ Date, :By; ~ __--. '. !ts: ~Lr-::;;;_",-';:r..." . " lily, Date: tl:;.., - DATED' , 1999 (A1'TAOI 1rOTARY ACJCI01f.LBDQIIDI'lS) . 1:1~/// List of Exhibits Exhibit A-I Legal Description of Deferral Property Exhibit A-2 Exhibit B Table II-A H:\Home\Anorney\shea710.ag! 9 /3d .../,,2. ------------ EXHIBIT "A-I" DESCRIPTION OF DEFERRAL PROPERTY FOR NEIGHBORHOOD R-7 LOTS 1-44,51-78,108-120, 124-I27 AND 131 OF LOTS 9 AND 13 OF OTAY RANCH, VILLAGE I "A" MAP, CHULA VISTA TRACT NO, 96-04, ACCORDING TO MAP THEREOF NO, 13592 FILED IN THE OFFICE OF THE COUNTY RECORDER JUNE 24,1998 IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA 134-/3 05,'03:99 11: 43 '5"619 549 0112 SHEA HOMES ~~~ CHVL~ nSTA ENGI fQJ 003 EXHIBIT A-1 I , I I I ! I ~ ¡ 1'1 ~ ~ I ! . I DEFERRAL PROPERTY , I I D DEVELOPMENT PROPERTY FILE NO. OR-139F DATE: TITLE: 04/30/99 OTAY RANCH VILLAGE 1 DRAWN BY: NEIGHBORHOOD R-7 GARY G. / 3~ ,¡. EXHIBIT "A-2" DESCRIPTION OF DEFERRAL PROPERTY FOR NEIGHBORHOOD R-10 LOTS 1-3,53-55 AND 59-123 OF LOTS 14 AND 15 OF OTA Y RANCH, VILLAGE 1 "A" MAP, CHULA VISTA TRACT NO, 96-04, ACCORDING TO MAP THEREOF NO. 13592 FILED IN TIlE OFFICE OF TIlE COUNTY RECORDER JUNE 24, 1998 IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA TOGETIlER WITH LOT "L" OF VILLAGE 1 NEIGHBORHOOD R-6 OF CHULA VISTA TRACT NO, 96-04, ACCORDING TO MAP THEREOF NO, FILED IN THE OFFICE OF TIlE COUNTY RECORDER IN TIlE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA /3/1 --/,.Ç ---.-----,,- 05/03/99 11: 44 'Zt619 549 0112 SHEA HOMES ~~~ CHULA VISTA ENGI I4J 004 EXHIBIT A-2 . DEFERRAL PROPERTY D DEVELOPMENT PROPERTY I ! iI I ~ .:::j I I FILE NO. 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RESOLUTION NO, J9'1?~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAPS OF CHULA VISTA TRACT NO. 96 - 04, OTAY RANCH, VILLAGE ONE, NEIGHBORHOODS R-7 AND R-10, ACCEPTING ON BEHALF OF THE CITY OF CHULA VISTA, GENERAL UTILITY AND ACCESS EASEMENTS, AND WALL EASEMENTS GRANTED ON SAID MAPS WITHIN SAID SUBDIVISIONS, ACKNOWLEDGING THE IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST FOR OPEN SPACE AND OTHER PUBLIC PURPOSES, APPROVING THE SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISION, AND AUTHORIZING THE MAYOR TO EXECUTE SAID 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 96-04 OTAY RANCH, VILLAGE ONE, SPA ONE, NEIGHBORHOODS R-7, and more particularly described as follows: Lots 9 and 13 of Otay Ranch, Village One nAil Map, Chula Vista Tract No, 96-04 according to the map thereof No, 13592 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 June 24, 1998, Area: 31.167 Acres No, of Lots: 142 Numbered Lots: 131 Lettered Lots: 11 Open Space Lots: 0.894 Acres is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted, BE IT FURTHER RESOLVED, said Council hereby accepts on behalf of the city of Chula vista sixty-two (62) foot wide general utility and access easements within Lots "All and liB" for installation of public utilities, noting that use of said general utility and general access easements by others is subject to written permission and issuance of an Encroachment Permit from the City of Chula vista, all as shown on this map within this subdivision, subj ect to the conditions set forth thereon, BE IT FURTHER RESOLVED that the city Clerk of the City of Chula 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 with the right of 1 }Jß"/ -.---.-.-....--,.. - ingress and egress for general utility, and general access, as granted thereon and shown on said map within said subdivision, are accepted on behalf of the City of Chula vista as herein above stated. BE IT FURTHER RESOLVED that City Clerk is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego, BE IT FURTHER RESOLVED that certain Subdivision Improvement Agreement dated the 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 the Mayor of the City of Chula vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula vista, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista hereby finds that certain map survey entitled Chula vista Tract 96-04 OTAY RANCH , VILLAGE ONE SPA ONE NEIGHBORHOOD R-10, and more particularly described as follows: Lots 14 and 15 of Otay Ranch, Village One "An Map, Chula Vista Tract No. 96-04, according to Map thereof No. 13592 filed in the Office of the County Recorder June 24, 1998 in the city of Chula vista, County of San Diego, State of California together with Lot \\LII of Neighborhood R-6 of Village One of Chula vista Tract No, 96-04, According to Map thereof No, filed in the Office of the County Recorder on May , 1999 in the city of Chula vista, County of San Diego, State of California, Area: 32,865 Acres No, of Lots: 140 Numbered Lots: 123 Lettered Lots: 17 Open Space Lots: 0.937 Acres is made in the manner and form prescribed by law and conforms to the surrounding surveys; and that said map and subdivision of land shown thereon is hereby approved and accepted. BE IT FURTHER RESOLVED, said Council hereby accepts on behalf of the City of Chula vista the sixty-two (62) foot wide general utility and access easement within Lots "A" and liB" for installation of public utilities, the thirty (30) foot wide general utility and access easement within Lot "P" , and the two (2) foot wall easement, noting that use of said general utility and general access easements by others is subject to written permission and issuance of an Encroachment Permit from the City of Chula vista, all as shown on this map within this subdivision, subject to the conditions set forth thereon. 2 /3 ß/;2 BE IT FURTHER RESOLVED, said Council hereby acknowledges on behalf of the City of Chula Vista the irrevocable offer of dedication in fee interest of Lot "Q" for Open Space and other Public Purposes, as shown on this map within this subdivision, BE IT FURTHER RESOLVED that the city Clerk of the City of Chula 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 with the right of ingress and egress for general utility, and general access, as granted thereon and shown on said map within said subdivision, are accepted on behalf of the City of Chula vista as hereinabove stated, BE IT FURTHER RESOLVED that City Clerk is hereby directed to transmit said map to the Clerk of the Board of Supervisors of the County of San Diego. BE IT FURTHER RESOLVED that certain Subdivision Improvement Agreement dated the 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 the Mayor of the city of Chula vista is hereby authorized and directed to execute said Agreement for and on behalf of the city of Chula vista, Presented by Approved as to form by John P, Lippitt ~~~ <~ Joh . Kaheny . Director of Public Works City Attorney H:\Home\Attorney\ReSO\RES07&10FM 3 J J ßr ;> ---~_._--- "-"'-_.. 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 of leSs 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 , 199 -, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "Cityn, and SHEA LAND HOLDINGS, LLC, 10721 Treena Street, suite 200, San Diego, CA 92131, 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 OTAY RANCH, VILLAGE 1, NEIGHBORHOOD R-7 (CVT 96-04) 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 agreement 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 1 J3ß-'!-' 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 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. 1B39B, approved on the 19th day of November, 1996 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 99-2B through 99-3B, 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 Eight Hundred Ten Thousand Six Hundred Twenty Dollars and No Cents ($B10,620,OO), NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS, 1, 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 requirements 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 will furnish the necessary materials therefor, 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 2 /3ß --3 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 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 Chula 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 Four Hundred Five Thousand Three Hundred Ten Dollars and No Cents ($405,310.00) which security shall guarantee the faithful performance of this contract by Subdivider and is attached hereto, marked Exhibit "An 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 Four Hundred Five Thousand Three Hundred Ten Dollars and No Cents ($405,310.00) to secure the payment of material and labor in connection with the installation of said public improvements, 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 Twenty Seven Thousand Dollars and No Cents ($27,000,00) 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 improvement securities may be used by City for the completion of 3 /3ß-¿' --~- --.' '-"-'~'-'------- - --.-....-..-..-- the Improvement 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 intèrest, 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 liable for the payment of any sum or sums for said work or any materials furnished therefor, 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, 11. It is further understood and agreed by Subdivider that any engineering costs ( incl uding plan checking, inspection, 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 fully completed and accepted by city, Subdivider will be responsible for the carel 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 employees 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, 4 I:Jß" 7 13 . It is understood and agreed that City, as indemnitee, 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 indemnitee, 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 indemniteè, related to this agreement; provided, however, that the approved improvement security shall not be required to cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of the construction of said subdivision and the public improvements 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 systems. 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 agreement and shall remain in full force and effect for ten (10) years following the acceptance by the city of the improvements. 14. Subdivider agrees to defend, indemnify, and hold harmless the City or 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, 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. (NEXT PAGE IS SIGNATURE PAGE) 5 JJß"Y SIGNATIJREPAGE TO SUBDIVISION IMPROVEMENT AGREEMENT OT A Y RANCH VILLAGE ONE, NEIGHBORHOOD R-7 (CVT 96-04) 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 Partnership By: J,F. Shea Co., Inc, a Nevada corporation, General Partner . Mayor of the City ofChula Vista Ric ecretary ATTEST City Clerk Approved as to fonn by: 6fæ(%v(~ Ci mey ~ (Attach Notary Acknowledgment) . /38// 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 of less 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 , 199 -' by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City" I and SHEA LAND HOLDINGS, LLC, 10721 Treena Street, suite 200, San Diego, CA 92131, 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 Otay Ranch, Village 1, Neighborhood R-I0 (CVT 96 - 04) 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 agreement 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 1 /3 {J -' /t? .--...." . -_._-_.._....._--"_.~"_..-._-_._.- 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 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', 18398, approved on the 19th day of November, 1996 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the city Engineer, as shown on Drawings Nos. 99-39 through 99-50, 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 Eight Hundred Five Thousand Eight Hundred Seventy Dollars and No Cents ($805,870.00) , NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS: 1, 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 requirements 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 will furnish the necessary materials therefor, 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 2 /3 ß--// 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 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 Chula 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 Four Hundred Two Thousand Nine Hundred Thirty Five Dollars and No Cents ($402,935.00) 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 Four Hundred Two Thousand Nine Hundred Thirty Five Dollars and No Cents ($402,935.00) to secure the payment of material and labor in connection with the installation of said public improvements, 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 Twenty Thousand Nine Hundred Dollars and No Cents ($20,900,00) 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 3 J3ß~/2 improvement securities may be used by City for the completion of the Improvement 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 liable for the payment of any sum or sums for said work or any materials furnished therefor, 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, 11. It is further understood and agreed by Subdivider that any engineering costs (including plan checking, inspection, 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 fully 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 employees 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, 4 J3(J"/3 13 , It is understood and agreed that City, as indemnitee, 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 indemnitee, 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 indemnitee, related to this agreement; provided, however, that the approved improvement security shall not be required to cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such a~jacent or downstream properties as a result of the construction of said subdivision and the public improvements 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 systems. 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 agreement and shall remain in full force and effect for ten (10) years following the acceptance by the City of the improvements, 14. Subdivider agrees to defend, indemnify, and hold harmless the city or 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, 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. (NEXT PAGE IS SIGNATURE PAGE) 5 J;3ß---¡¥ SIGNATURE PAGE TO SUBDIVISION IMPROVEMENT AGREEMENT OTA Y RANCH VILLAGE ONE, NEIGHBORHOOD R-10 (CVT 96-04) 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 Lirnited Partnership By: J.F, Shea Co" Inc, a Nevada corporation, General Partner . Mayor of the City ofChula Vista ATTEST City Clerk Approved as to form by: ~~Co-t City 0 ey '^7- (Attach Notary Acknowledgment) ../ J:]ß/I.!J -- -.-_.~--_..._._-_.._-----_.. ----- RESOLUTION NO, /9~?~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR THE FINAL liB" MAPS OF NEIGHBORHOODS R-7 AND R-10 IN VILLAGE ONE, SPA ONE OF THE OTAY RANCH PROJECT WHEREAS, the developers of Neighborhoods R-7 and R-10 in Village One, Spa One of the Otay Ranch Project have executed a Supplemental Subdivision Improvement Agreement (SSIA) in order to satisfy Conditions of Resolution No, 18398 for Chula vista Tract No, 96-04, NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the Supplemental Subdivision Improvement Agreement for Chula vista Tract No. 96-04, Otay Ranch Project, Village One, Spa One, Neighborhoods R-7 and R- 10, a copy of which is 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 and directed to execute said Agreement for and on behalf of the city of Chula vista, Presented by Approved as to form by John P. Lippitt ~%,~ Job: , Kaheny Director of Public Works city Attorney H: \Home\Attorney\Reso\R7-10. Sup ) 3C;---- I ~..._--_....~...~_._-~.. 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 i~ 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 SUBDMSION IMPROVEMENT AGREEMENT FOR THE FINAL "B" MAPS OF NEIGHBORHOODS R-7 AND R-IO IN VILLAGE ONE, SPA ONE OF THE OT A Y RANCH PROJECT, (Conditions: I, 3, 4,5,8,9,10,11,21,22,27, and 99 of Resolution No. 18398) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this_day of May, 1999, by and between THE CITY OF CHULA VISTA, California ("City" or "Grantee" for recording purposes only) and the signatories of this Agreement, ("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 ce$in real property located in Chula Vista, California, more particularly described on Exhibit "A" attached hereto and incorporated herein ("Property"), The Property is part of the Otay Ranch, Village One SPA One, a master planned development For purposes of this Agreement the term "project" shaH also mean "Property", Developer has applied for final maps for the Property, more specifically known as Neighborhoods R-7 and R-I 0 B. Otay Ranch LP, conveyed title of the Project area to South Bay Project, LLC, a Delaware limited liability company on August 26,1997, which in turn conveyed the Property, except for SPA One Planning Area R-20, to Otay Project LLC, a California limited liability company ("Otay Project"), a venture jointly owned by South Bay Project, LLC, a Delaware limited liability company 1 / 3¿,:2- ----,- and Otay Ranch Development, LLC, a Delaware limited liability company; and Otay Project sold SPA One Planning Area R-1 to UDC Homes, DMEI AEW Land Holdings Two LLC, which merged with Shea Homes Limited Partnership (Shea Homes); and Otay Project sold SPA One Planning Area R-2 to Standard Pacific Corp" a Delaware corporation on January 2, 1998; and Otay Project sold SPA One PI~g Area R-3 to Centex Homes, a Nevada general partnership on January 2,1998; and Otay Project sold SPA One Planning :Area R-4 to DMB/AEW Land Holdings Two LLC, which merged with Shea Homes Limited Partnership (Shea Homes); and Otay Project sold SPA One Planning Area R-S to Standard Pacific Corp., a Delaware corporation on January 2, 1998; and Otay Project sold SPA One Planning Area R-8 to Centex Homes, a Nevada general partnership on April 7, 1998; and Otay Project sold SPA One Planning Area R-6 to Trimark Pacific-LXX, LLC, a California limited liability company on July 9, 1998; and Otay Project sold SPA One Planning Area R-7 which conveyed to Shea Homes Limited Partnership (Shea Homes); and Otay Project sold SPA One Planning Area R-9 to PHI Otay Ranch Associates LLC, a Delaware limited liability company on June 26, 1998; and Otay Project sold SPA One Planning Area R-14 to PHI Otay Ranch Associates LLC, a Delaware limited liability company on June 26, 1998; and Otay Project sold SPA One Planning Area R-10 to DMB/AEW Land Holding Two LLC, which merged with Shea Homes Limited Partnership (Shea Homes); and Otay Project sold SPA One Planning Area R-I2 to Centex Homes, a Nevada general partnership on July 1, 1998; and Otay Project sold SPA One Planning Area R-13 to Centex Homes, a Nevada general partnership in July 1, 1998, C. Whereas Otay Project, LLC. is the master developer who has obligated itself to construct 2 / 3C-- j public improvements under the tenns of the Tentative Subdivision Map and the Re-stated and Amended Pre-Annexation Development Agreement, (Ordinance No, 2695) D. Developer and/or Developer's predecessor in interest has applied for and the City has approved a Tentative Subdivision Map commonly referred to as Chula Vista Tract 96-04 ("Tentative Subdivision Map") by Resolution No, 18398 ("Resolution") for the subdivision of the Property subject to certain conditions as more,particularly described in the Resolutions. The conditions are attached hereto as Schedule "1 ". E. City is wÌlling, on the premises, ~ecurity, terms and conditions herein contained to approve final map of the property known as Neighborhoods R-7 and R-IO, as being in substantial conformance with the Tentative Subdivision Map described in this Agreement. Developer understands that subsequent final maps may be subject to the same security, terms and conditions contained herein, F. The following defined terms shall have the meaning set forth herein, unless otherwise specifically indicated: a, For purposes of this Agreement, "Final Map" means each of the final maps for Neighborhoods R-7 and R-1 0 of Otay Ranch Village One, SPA One. b, "commencing construction" means when a construction permit or other such approval has been obtained from the City or a construction contract has been awarded for the improvement, whichever occurs first. c. "complete construction" means when construction on said improvement has been completed and the City accepts the improvement. d. "Developer" means Otay Project, LLC. and any and all owners of real property within the boundaries of the Property, and all signatories to this Agreement including: i.) Otay Project, LLC. ii.) Shea Homes Limited Partnership e, "guest builder" means those entities obtaining any interest in the Property or a portion of the Property, after the Final Map has been recorded. f, "PFFP" means the SPA One Public Facilities Finance Plan adopted by Resolution No, 18286 as may be amended from time to time, g. "RMP 2" means the Otay Ranch Resource Management Plan, Phase 2, approved by the City Council on June 4,1996, as may be amended from time to time, 3 / .JC--{ ______..____u______.._,_._ h, '" A' Map Agreement" means the Supplemental Subdivision Improvement Agreement for the Village One "A" Map adopted by Resolution No. 19044. 1. "First Final 'B' Map Agreement" means the Supplemental Subdivision Improvement Agreement for the Village One Neighborhood R-3 Map adopted by Resolution No. 19211. J. "Second Final 'B~ Map Agreement" means the Supplemental Subdivision Improvement Agreement for the Village One Neighborhoods R-l, R-2, R-4 and R-5 Maps adopted by Resolution No. 19235, . k. "Third Final 'B' Map Agreement" means each of the Supplemental Subdivision Improvement Agreements for the Village One Neighborhoods R-6, R-9 and R-14 Maps adopted by Resolution No, 19436 and Neighborhood R-8 Map adopted by Resolution No. and 19434, L "Co=unity Association" means the Otay Ranch Village One Co=unity Association as defined in the Declaration of Covenants, Conditions and Restrictions of Otay Ranch Village One (C,C&R's) recorded on January 2, 1998 as Document No. 1998-0000749 and all Supplementary Declarations thereto, m. "Co=unity Co=on Area" means real property, and improvements situated thereon, owned in fee or Ieased by the Co=unity Association for the co=on use and enjoyment of the Owners as further defined in said C,C&R's, NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as set forth below. 1. Performance Obligation. Otay Project, LLC, signator to this Agreement, represents to the City that it is acting as the master developer for this Project and expressly assumes performance of the obIigations set forth in paragraphs 3b, 7, 8, and 10 of this Agreement Notwithstanding the foregoing, all parties to this agreement acknowledge and agree that all such obligations remain a covenant running with the land as set forth more particularly in paragraph 2 below. The City in its discretion will make a good faith effort to execute on bonds securing the obligations contained herein to the extent necessary to complete any unfulfilled obligations of the master developer. 2. Agreement Applicable to Subsequent Owners. a. 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 4 IJ¿-,5 Property until released by the mutual consent of the parties, b. 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 co=unity 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 breach to which it or any other beneficiaries of this Agreement and the covenants may be entitled. . c. 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. Developer must obtain the 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 withhoId its consent to any such request for a release so long as the assignee acknowledges that the Burden of the 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 Assignee, d. 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, e. Release of Individual Lots. Upon the occurrence of any of the following events, 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; ii. The conveyance of a lot to a Homeowner's Association, 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 5 / :]C-t 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, i) at the close of an individual homeowner's escrow, or ii) conveyance to a homeowner's association of any lot or parcel encumbered by this Agreement, such lot or parcel shall be automatically rèleased from the encumbrance hereof. 3. Condition No.1 - (General Preliminary). In satisfaction of Condition No. t of the Resolution, Developer hereby agrees, to: . a. Comply with the requirements and guidelines of the Parks, Recreation, Open Space and Trails Plan, Public Facilities Finance Plan ("PFFP"), Ranch Wide Affordable Housing Plan, SPA One Affordable Housing Plan, and the Non-Renewable Energy Conservation Plan, as may be amended from time to time, and shall remain in compliance with and implement the terms, conditions and provisions of said documents. b. Construct the Pedestrian Paseo improvements between Monarche Drive and Morgan Hill Drive as shown on the Tentative Subdivision Map, according to plans that shall be approved by the Director of PIanning and Building. The Developer agrees to complete the construction of the Pedestrian Paseo improvements concurrently with the completion of the first neighborhood park in SPA One identified on the Tentative Subdivision Map as Park P-I, which shall be completed according to the schedule set forth in paragraph ISb of the First Final "B" Map Agreement, or as modified by subsequent agreement with the City. 4. Condition No.3 - (General Preliminary). In satisfaction of Condition No, 3 of the Resolution, Developer agrees that if any of the terms, covenants or conditions contained within the Resolution shall fail to occur or if they are, by their terms, to be implemented and maintained over time, if any of such conditions fail to be so implemented and maintained according to their terms, the City shal1 have the right to deny the issuance of building permits for the Project, deny, or further condition the subsequent approvals that are derived from the approvals herein granted, institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation, The applicant shall be notified ten (10) days in advance prior to any of the above actions being taken by the City and shall be given the opportunity to remedy any deficiencies identified by the City within a reasonable period of time. 5. Condition No.4 - (General Preliminary) In satisfaction of Condition No, 4 of the Resolution, a,) Otay Project, LLC agrees to indemnify, protect, defend and hold the City harmless iÌ'Om and against any and all claims, liabilities and costs, including attorney's fees, arising from challenges to the Environmental Impact Report for the Project; and b,) Developer agrees to indemnify, protect, defend and hold the City harmless iÌ'Om and against any and all claims, liabilities 6 ) JC-- ? and costs, including attorney's fees, arising from challenges to any and all entitlements and approvals issued by the City in connection with the Project. 6. Condition No.5 - (General Preliminary). In satisfaction of Condition No. S of the Resolution, Developer hereby agrees, that Developer shall comply with all the applicable SPA conditions of approval. 7. Condition Nos. 8, 9, 10 and 11 - (Conveyance Obligation). In partial satisfaction of Condition Nos. 8, 9,10, apd 11, the Developer agrees as follows: a. The Developer provided the City with Irrevocable Grants of Fee Title, of266.6 acres ofreal property in accordance with the RMP 2, a portion of which (76,07 acres) is intended to satisfy the particular acreage conveyance obligation of the Final Map at a rate of 1,188 acres of conveyance per acre of area within the Final Map, as of the date of this Agreement. But such obligation may be subject to change in accordance with paragraph "7,c". Any remaining amount shall be credited towards any future map obligations. A summary of the conveyance and a copy of the Irrevocable Grants of Fee Title are attached as Exhibit "B" of this agreement. b. That such dedicated property shall be granted in fee title to the City and County of San Diego as joint tenants and subject to the approval of the Preserve OwnerlManager. Should the Preserve OwnerlManager not approve this conveyance, Developer agrees to convey equivalent real property that complies with this provision. c. That Developer shall convey additional real property if necessary in order to comply with the conveyance formula described in RMP 2, as may be amended by City. Developer acknowledges that the amended RMP 2 may contain a conveyance formula greater than 1,188 acres per developable acre. d. That all land to be conveyed as described above shall be free and clear ofliens and encumbrances except for easements for existing public infrastructure and other easements approved by the City or for planned public infrastructure as permitted in the RMP, Phase 2. Developer further agrees to pay all taxes and assessments as they came due as to the land to be conveyed until title has legally transferred to the City and County of San Diego. e. Developer acknowledges that property within the boundaries of the "A" Map which will be the subject of future final maps may have conveyance obligations to fulfill for all development areas, including applicable streets, open space lots, paseos, pedestrian parks and slope areas shown on the "A" Map. 8. Condition No. 21 and 22 - Street and Public Improvements. In partial satisfaction of Condition Nos. 21 and 22 of the Resolution, the Developer agrees as follows: 7 J3C....g/ 8.a Improvement Work. Developer agrees to construct the street improvements and land development work in and adjoining said subdivision and as shown on the Drawings set forth on Exhibits "C" ("Street and Public Improvements"), at its own expense, without any cost to the City, in a good and wor1<mHnlilce manner, under the direction and to the satisfaction and approval of the City Engineer. Developer further agrees to furnish the necessary materials therefore, all in strict confonnity and in accordance with the plans and specifications, which documents have heretofore been filed in the Office of the City Engineer and by this reference are incorporated herein and made a part hereof. Developer shall complete construction of the Street Improvements on or before the earlier of the second anniversary date of Çouncil approval of this Agreement or, if prior to Council approval of this agreement, a construction pennit was issued for any portion of said Street Improvement, then construction on that portion for which a permit was issued shall be completed on or before the second anniversary date of is!WUlce of said pennit, It is expressly understood and agreed to by Developer that, in the performance of construction of said Street Improvements, Developer shall confonn to and abide by all of the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. 8.b. Bonding. , Developer agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this Agreement, and to thereafter maintain until City acceptance of the work referenced herein, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sums as set forth on Exhibit "C", which security shall guarantee the faithful perfonnance in connection with the installation of the Street Improvements as shown on Exhibit "C". ii. Developer agrees to furnish and deIiver to the City of Chula Vista simultaneously with the execution of this Agreement, and to thereafter maintain until City acceptance of the work referenced herein, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sums as set forth on Exhibit "c" to secure the payment of material and labor in connection with the installation of said Street Improvements, which security is shown on Exhibit "C", iii. Developer acknowledges and agrees that if the Street Improvements are not completed within the time agreed herein, the sUms provided by said improvement securities may be used by City for the completion of the Street Improvements in accordance with those approved plans and specifications contained on Exhibit "C", or at the option of the City, for those improvements shown on Exhibit "c" that are less than, but not greater to, the sums provided by said improvement securities, 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 the Developer or its successors in interest, pursuant to the terms of the improvement security. Developer agrees to pay to the City any difference between the total costs incurred to perfonn the work, 8 ) 3C-r including limited and reasonable design and administration of construction in substantial confor- mance with the approved plans (including a reasonable allocation of overhead), and any proceeds from the improvement security, 8.c. Developer's Costs and Expenses. 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 the City or the City's officer, sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor,. 8.d. Plan Check fees and Additional Costs. It is further understood and agreed by Developer that any engineering costs (including plan checking, inspection, materials furnished and other incidental expenses) incurred by City in connection with the approval of the Street Improvements plans and installation of Street Improvements described above, as required by City and approved by the City Engineer shall be paid by Developer, and that Developer shall deposit, prior to recordation of the Final Map, with City a sum of money sufficient to cover said cost. 8.e. Maintenance Costs. Developer understands and agrees that until such time as all of the Street Improvements as covered by any particular bond are fully completed and accepted by City, Developer shall be responsible for the care, maintenance of, and any ciRmRge to, such streets and any alleys, easements, water and sewer lines. It is further understood and agreed that Developer shall guarantee all of the Street 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 Developer, its agents or employees in the performance of this Agreement, and that upon acceptance of the work by City, Developer 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. S.f. Indemnification Developer further understands and agrees that City, (as "Indemnitee") and any officer or employee thereof, shall not be liable for any bodily injury, death, or property damage, including thereto hazardous materials and property takings claims occasioned by reason of the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee (which are not the result of Indemnitee's sole negligence or willful misconduct), reIated to the construction of the Street Improvements. Developer further agrees to defend, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, costs and expense (including, without limitation, reasonable attorneys fees) or loss for bodily injury, death or property ciamRges, including thereto hazardous materials and property takings claims, because of or arising out of Developer's construction of the Street Improvements or the acts or omissions of Developer, its subcontractors or suppliers, its agents or employees, or Indemnitee, related thereto; provided, however, that Developer shall have no obligation to indemnify, defend, or hold harmless from any such losses, claims, demands, causes of action, liability, damages, costs or expenses which arise out of the sole 9 J]C-/C negligence or willful misconduct of the Indemnitee or any employees or officers thereof. Developer further agrees to, indemnify, protect and hold the Indemnitee, its officers and employees, harmless from any and all claims, demands, causes of action, liability, cost and expense (including without limitation, reasonable attorneys fees) made or incurred by third parties pursuant to contracts entered into by such third parties with or on behalf of Developer or its successors, assigns or agents concerning construction of the Street Improvements; provided, however, that Developer shall have no obligation to indemnify, defend or hold Indemnitee harmless from any such losses, claims, demands, d"mages, causes of action, 'liability, costs and expenses to the extent that they have arisen due to the sole negligence or willful ~nduct of Indemnitee or any employees or officers thereof. The improvement secmities referred to above shall not cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to d"m"ges to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of construction of the Street Improvements 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 construction of the Street Improvements. The approval of plans for the Street Improvements shall not constitute the assumption by City of any responsibility for such d"m"£e or taking, nor shall City, by said approval, be an insurer or surety for said work and related improvements. The provisions of this paragraph shall become effective upon the execution of this Agreement and shall remain in full force and effect for ten (IO) years following the acceptance by the City of the Street Improvements, 9 Condition No. 27 - (Street Trees). In partial satisfaction of Condition N027 of the Resolution: a. DeveIoper shall obtain approval from the Director of Planning and Building and the City Engineer of a separate street tree improvement plan which includes the final selection of trees, the location of trees within the parkway, and in relation to water laterals, sewer laterals, dry utilities, driveways, inlets and pedestrian ramps, within thirty (30) days of the approval of the Final Map. Developer understands that the City may withhold the issuance of building permits within the Final Map if the street tree improvement plan is not approved within said thirty (30) day period, b. Developer, upon request of the Director ofPIanning and Building, shall plant within all street parkways, trees which have been selected from the revised Iist of appropriate tree species described in the Village Design Plan which shall be approved by the Directors of Planning and Building and PubIic Works. The applicant shall provide root control methods per the requirements of the Director of Planning and Building and a deep watering irrigation system for the trees, An irrigation system shall be provided from each individual lot to the adjacent parkway, 10. Condition No. 99 - (Easements). In partial satisfaction of Condition No, 99 of the Resolution, the Developer shall, within sixty (60) days of the approval of the Final Map, submit for approval by the Fire Marshal, the City Engineer and the Director of Planning and Building an 10 ¡JC---¡I improvement plan for the emergency access easement granted to the City of Chula Vista on said Final Map within Lot "P" between Lots 82 and 117 in the subdivision, The emergency access improvements shall include: (IL) a gate controlled by an Opticom or other approved automatic control system and a 20 foot-wide improved surface along the length of the access easement and, both the gate and access surface shall be to the satisfaction of the Fire Marshal; (b.) pedestrian access through or around the automatic gate; and (c,) landscaping of the remainder of Lot "P" ("appurtenant facilities"). Pedestrian access and landscaping shall be to the satisfaction of the Director of Planning and Building. Prior to the issuance of the 6200 building permit for residential units within R-l 0, the Developer, at the Developer's sole cost, ,shall complete the construction of the emergency access improvements according to the approved plans. The emergency access and its appurtenant facilities shall thereafter be maintained by the Community Association as a Common Maintenance Area to the satisfaction of the City ofChula Vista in accordance with the C,C&R's at the sole cost to the Community Association, 11. Satisfaction of Conditions. City agrees that the execution of this Agreement constitutes satisfaction of Developer's obligation of Conditions: 1,2,3,4 and 5 of the Resolution and partial satisfaction of Condition Nos. 8, 9, 10, 11, 21, 22, 27, and 99. Developer further understands and agrees that some of the provisions herein may be required to be perfonned or accompIished prior to the approval of other final maps for the Project, as may be appropriate. 12. Unfulfilled Conditions. Developer hereby agrees, unless otherwise conditioned, that Developer shall comply with all unfulfilled conditions of approval of the Tentative Map, established by the Resolution and shall remain in compliance with and implement the terms, conditions and provisions therein, 13. Previous Agreements, The Developer acknowledges that nothing in this Agreement shall supersede, nullify or otherwise negatively impact the terms of the "A" Map Agreement or the First, Second or Third Final "B" Map Agreements, unless specifically noted herein. This Agreement affirms and reflects the tenns, conditions and provisions of the "A" Map Agreement, the First, Second and Third Final "B" Map Agreements, and of the Tentative Map 96-04 conditions applicable specifically to the Final Map for the Property. 14. Recording, This Agreement, or an abstract hereof shall be recorded simultaneously with the recordation of the Final Map. 15. Building Permits. Developer understands and agrees that the City may withhold the issuance of building permits and all other permits for the entire SPA One project area, 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 reasonable time to cure said breach. Developer further acknowledges and agrees that the City may withhold building permits within the Final Map as defined herein if the required public facilities for SPA One, as defined in the PFFP or as amended by the Annual Monitoring Program or otherwise conditioned, 11 /3L//2 have not been completed or constructed to the satisfaction of the City. 16. Miscellaneous. a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by tIris Agreement or by law to be served on or delivered to either party shall be in writing and shall be dee,med 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. II1fIÌI, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the 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: Director of Public Works Otay Project, LLC 350 West Ash Street, Suite 730 San Diego, CA 92101 Attn: Kim John Kilkenny Fax (619) 234-4088 South Bay Project, LLC I91 West Wilbur Road, Suite 102 Thousand Oaks, CA 91360 Attn: David Green Fax (805) 379-4472 Shea Homes Limited Partnership 10721 Treena Street, Suite 200 San Diego, CA 92131 Attn: Richard Gustafson Fax: (619) 549-0112 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. 12 ) J¿---IJ 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 partìes participated equally in the preparation and/or drafting this Agreement. e. Recitals; Exhibits, Any recitals and exhibits set forth above are incorporated by reference into this Agreement. . f. Attorneys' Fees, If any party co=ences 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 attorney'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 PAGE ONE OF SIGNATURE PAGESl H:\horne\engineer\landdev\otayranch\ssia 7 & 1 O.AR 13 /3 c;-J'/ . ._._...__._~-_._--- ----- -. ~ PAGE ONE OF TWO SIGNATURE PAGES TO SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT NEIGHBORHOODS R-7 AND R-IO OF THE OTAY RANCH, VILLAGE ONE SPA ONE] CITY OF CHULA VISTA Mayor of the City of Chula Vista . Attest: Susan Bigelow City Clerk Approved as to Form: ~è_Crl~ Jo M. Kaheny City Attorney DATED: , 1999 [NEXT PAGE IS PAGE TWO OF SIGNATURE PAGES] 14 /:1 {;/ /5 ...........-.........--- [pAGE TWO OF TWO SIGNATURE PAGES TO SUPPLEMENTAL SUBDMSION IMPROVEMENT AGREEMENT NEIGHBORHOOD R-7 AND R-IO OF THE OTAY RANCH, VILLAGE ONE SPA ONE] DEVELOPER: OTA Y PROJECT,LLC, a California Limited Liability Company By: Otay Ranch Development, LLC, a Delaw ' d Liabili Company, member By: D:te: ~/t\/I1'1 Its: By: SHEA HOMES LIMITED PAR1NERSHIP a California Limited Partnership, By: ],F, SHEA CO., a Nevada Corporation, its general partner ^ By: ~-"""<- \ Date: 5-12-99 ~chard Gustafson Its: Assistant Secretary By: Date: 5-12-99 DATED: May 12 ,1999 (ATTACH NOTARY ACKNOWLEDGMENTS) 15 13C-/¿, STATE OF CALIFORNIA ) ) ss, COU1\'TY OF SAN DIEGO ) On May 12, 1999, before me, Rhonda M, Angel, Notary Public, personally appeared Richard Gustafson and Cynthia Roush, 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, //1?1 ' L-_ a . \ ,l'\1.A....£u !)). .L0;.vt Rhonda M. Angel, Nota~liC SEAL: @ Mond. M. Ang" _ CCMU 1132603 !! ~ NO'rNn' Pl.8UC-CALIFORNIA .:.. ." SAN DIEGO COUNTY MY ~ EXP. APRIl 21 , 2C01 /]c-/? List of Exhibits Exhibit A Legal Description of Property Exhibit B Preserve conveyance summary Exhibit C , Street and PubIjc Improvements . 16 /:J C "'/<ð' .~-_.- EXHIBIT "A" DESCRIPTIONS OF PROPERTY OF FINAL MAPS FOR NEIGHBORHOOD R-7 AND R-I0, RESPECTIVELY LOTS 9 AND 13 OF OTAY RANCH, VILLAGE 1 "A" MAP, CHULA VISTA TRACT NO. 96-04, ACCORDING TO MAP THEREOF NO, 13592 FILED IN THE OFFICE OF THE COUNTY RECORDER JUNE 24, 1998 IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, LOTS 14 AND 15 OF OTAYRANCH, VILLAGE 1 "A" MAP, CHULA VISTA TRACT NO. 96-04, ACCORDING TO MAP THEREOF NO, 13592 FILED IN THE OFFICE OF THE COUNTY RECORDER JUNE 24, 1998 IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. TOGETIIER WITH LOT "L" OF VILLAGE 1 NEIGHBORHOOD R-6 OF CHULA VISTA TRACT NO, 96-04, ACCORDING TO MAP THEREOF NO, FILED IN THE OFFICE OF THE COUNTY RECORDER IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA /3C-/1 EXHIBIT "B" Preserve Conveyance R-7 31.167 37,0264 R-10 32,865 39,0436 Total ·64,032 76,070 /:3 C---,.2.0 EXHIBIT "c" STREET and PUBLIC IMPROVEMENTS CHULA VISTA TRACT NO. 96-04 ~LAGE ONE, SPA ONE -- ~~--~----- - " -- - ---- - --- ~ ~ - .' , ." " , ~ ,. . . .. , .. , , , . ' 'n' Phase IB and 4 Grading and $4,550,000 3SM913 1115/99 98-809 Drainage 78600 to 98-852 Phase 1B and 4 Landscape and $2,459,690 3SN9166 1/15/99 98-1212 Irrigation 2300 to 98-1273 East Palomar S1.: $1,754,637 3SM915 3/4/99 98-686 Street Improvements 7900 to 98-699 East Palomar S1.: $1,665,532 3SM917 Pending 98-904 Landscape Improvements 05300 to 98- 914G Santa Alicia A venue: Backbone $384,564 3SM917 4/5/99 98-1291 Improvements 17900 to 98-1296 Santa Lucia/Santa Madera $665,205 3SM916 1/21/99 98-660 Avenue: 41600 to B~kbone Improvements 98-666 /3C---.2j COUNCIL AGENDA STATEMENT Item /'1 Meeting Date May 25. 1999 ITEM TITLE: Fiscal Status Report as of the end of the Third Quarter of Fiscal Year 1998-99 SUBMITTED BY: Director of Financ~ ~ REVIEWED BY: City Manager (4/5ths Vote: Yes _NoLI In accordance with Charter Section 504(f), attached for your consideration is the fiscal status report as of March 31, 1999. RECOMMENDATION: That Council accept the report as submitted. DISCUSSION: Section 504(f) of the City Charter requires quarterly and annual fiscal status reports to be filed by the Director of Finance through the City Manager. Attached for your consideration is a report covering the period through March 31, 1999 for fiscal year 1998-99. The report concludes that as of the end of the third quarter of this fiscal year, the aggregate sources of funds (revenues and transfers in) are expected to exceed the aggregate uses of funds (Expenditures and Transfers out) by approximately $750,000, thereby increasing reserves by that amount. Actual revenues are projected to exceed budget estimates by approximately $378,000, while actual expenditure levels are projected to be $2,452,000 million less than budget authorizations. The projected operating surplus of $2,830,000 ($378,000 + 2,452,000) is offset by the $2.1 million in reserved-funded mid-year budget amendments, resulting in the projected $752,000 increase to the reserve level. The two most significant amendments related to labor contracts and claim settlements. Actual revenues in most categories are projected to exceed budget estimates. Two exceptions are Revenues from Other Agencies (Grants), which is projected to be under-realized by some $700,000, and Other Revenues, primarily various types of reimbursements, which is projected to be under-realized by approximately $1 million. The specific accounts projected to fall short of budget estimates within both categories are generally developer reimbursements or grant reimbursements. These shortfalls are generally expected to be offset by expenditure savings, since they are ¡if-/ . ~--_. Page 2, Item Meeting Date May 25.1999 due to delays in hiring staff or other expenditure delays, With the exception of the City Clerk, all departments are projecting to be able to manage within their allotted budget. The departments of Police, Public Works, Planning & Building, and Library & Recreation are projecting significant savings primarily due to staff vacancies. Council will be requested to transfer savings from another department to the City Clerk prior to any over-expenditure occurring. FISCAL IMPACT: There is no fiscal impact relative to accepting or rejecting the report, since it is for information purposes only. The City General Fund began Fiscal Year 1998-99 with an Available Fund Balance of $6.67 million. Based on the information available at this point in the fiscal year, it appears that this amount could increase by at least $750,000, /1- ;L - .--~