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HomeMy WebLinkAboutAgenda Packet 1999/03/16 "I ~ec'are IInder penelty of perjury that I am emnto ~ " ,- ~i j'c., of Chu'O) Vista in the 0.; :e,( ,. ~:j fy;~ f p0z~ed tUs t:,..:t~. (:hke '\ 'LA~' aJlieUn Board at Tuesday, March 16, 1999 ~I'e ?U:'~JK)'ces BuLin: ~:! u:~. a Ion.. . Council Cha~b~rs 6:00 p.m. -,AT ED, ..3 '/ z:z..... SIGNED ~'----'-:::::Eubhc Services BUlldmg (immediately following the City Counci Meeting) Tuesday, March 16, 1999 CHULA VISTA CITY COUNCIL CLOSED SESSION AGENDA Effective April 1, 1994, there have been new amendments to the Brown Act. Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will discuss and deliberate On the following items of business which are permitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protect the interests of the City. The Council is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Council's return from closed session, reports of final action taken, and adjournment will not be videotaped Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the City Clerk's Omce. 1. CONFERENCE WITH LEGAL COUNSEL REGARDING: Existing litigation pursuant to Government Code Section 54956.9(a) I. Update On status of City ofChula Vista vs. Federal Home Loans Corp. Case Number SB 632. . Significant exposnre to litigation pursuant to Government Code Section 54956.9(b) 1. Claim Numbers 98-14-007 & 98-14-008 - Malta Ave. 2. REPORT OF ACTIONS TAKEN IN CLOSED SESSION March 16, 1999 '" declare un~er ncna'ty of perjury that I am em""i) 'C ' " for (:nu!a Vista in the ();-j :(;09 (' A >l:Nni'~ ! posted t:' 1:3 /.. J 1.Q _ ~.!lIe~n Board at ~7T~~' :~l1/~b~~~,~t~/~. 6:00 p.m. CALL TO ORDER L ROLL CALL: Councilmembers Davis, Moot, Padilla, Salas, and Mayor Horton. 2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE 3. APPROV AL OF MINUTES of March 2, 1999. 4. SPECIAL ORDERS OF THE DAY A. Oath of Office: Barbara Worth - Mobilehome Rent Review Commission; and Samuel G. Avalos - Human Relations Commission. CONSENT CALENDAR (Items 5 through 13) The staff recommendations regarding the fiJI/owing items listed under the Consent Calendar will be enacted by the Council by one motion, withow discussion, unlcss a Councilmember, a member olthc puhlic, or City stafl requests thatthc itcm be removed for discussion. If you wish to speak on one of these items, pleasefil/ out a "Rcqucstto Speak "form (available in the lob b)) and suhmit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed a/ier Action Items. Items pulled by the public will be theftrst items olhusiness. 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 March 2, 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 from Thomas Mooney requesting that the first twenty feet of Manzanita Street curbing be painted red to prohibit parking. Staff recommendation: The letter be received and filed. Agenda 2 March 16, 1999 CONSENT CALENDAR (Continued) C. Letter from F. Ben Eberle requesting Business License fees be waived for the "Taste of the Arts" festival scheduled for April 10, 1999. Staff recommendation: The business license fee be waived for this one-day event. D. Letter of resignation from the Cultural Arts Commission - Brent A. Curd. 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. ORDINANCE 2776, ESTABLISHING CHAPTER 2.02 OF THE MUNICIPAL CODE RELATING TO CONFLICT OF INTEREST (FIRST READING) It is requested that Council adopt the proposed ordinance implementing a conflict of interest code for the City as required by the Political Reform Act (Government Code section 87000 et seq.). Staff recommendation: Council place the ordinance on first reading. (City Attorney) 7. RESOLUTION 19385, ADOPTING PROPOSED COUNCIL POLICY ON USE OF CITY OF CHULA VISTA DISCLOSURE FORM Council recently voted to amend Municipal Code Section 2.52.040, redefining the term "contribution." During that discussion reference was made to the "City ofChula Vista Disclosure Statement" form. This is a form the applicant or contractor for a project completes prior to any discretionary action being taken on their project. The Attorney's Office was requested to review the form and return to Council with a revised form incorporating the recent changes to the City's definition of campaign contribution. Staff recommendation: Council adopt the resolution. (City Attorney) 8A RESOLUTION 19386, AMENDING THE FISCAL YEAR 1998/99 BUDGET ADDING 2.5 POSITIONS AND $111 ,915 TO THE HUMAN RESOURCES DEP ARTMENT AND $12,350 TO THE CITY ATTORNEY'S DEPARTMENT, BASED ON UNANTICIPATED REIMBURSEMENT REVENUE FROM THE TRANSIT, REDEVELOPMENT AGENCY, AND STORM DRAIN FUNDS (4/5TH'S VOTE REQUIRED) B. RESOLUTION 19387, AMENDING THE FISCAL YEAR 1998/99 PUBLIC F ACILlTIES DEVELOPMENT IMPACT FEE BUDGET-CIVIC CENTER COMPONENTTO ADD $18,800 FOR EQUIPMENT AND FURNISHINGS FOR THE NEW STAFF (4/5TH'S VOTE REQUIRED) Agenda 3 March 16, 1999 CONSENT CALENDAR (Continued) The City's Risk Management Division handles liability, safety, workers' compensation and employee benefit issues. As discussed in this report, the division has been understaffed over an extended period of time. At current staffing levels, the division is unable to provide the level of staff review necessary to minimize the City's risk exposure on a myriad of liability, insurance and safety issues, or to provide adequate customer service on workers' compensation and benefit issues. It is important to note that all of the proposed budget increases for the current year (and for future years) are expected to be offset by projected revenue enhancements, increased General Fund reimbursements, and budget adjustments. Staff recommendation: Council adopt the resolutions. (Special Projects Manager and Director of Human Resources) 9. RESOLUTION 19388, WAIVING THE CONSULTANT SELECTiON PROCESS AS IMPRACTiCAL AND APPROVING AGREEMENTS WITH THE BOND COUNSEL FIRM OF BROWN, DIVEN, HESSELL & BREWER LLP, THE INVESTMENT BANKING FIRM OF STONE & YOUNGBERG LLC, AND THE FINANCIAL ADVISORY FIRM OF FIELDMAN, ROLAPP & ASSOCIATES TO CONTINUE TO PROVIDE SPECIALIZED PROFESSIONAL SERVICES RELATED TO INFRASTRUCTURE FINANCING DISTRICTS WITHIN THE OTAY RANCH TERRITORY, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS A primary source of financing for development related infrastructure, such as roads, sidewalks, drainage, etc., has been borrowing through the use of various types of financing districts. The complicated legal requirements and financial strategies for the formation of such districts and completion of the long term borrowing through bond issuance have necessitated the use ofa team of consultants, including as a core, Bond Counsel, Underwriters, and Financial Advisory firms. Staff recommendation: Council adopt the resolution. (Director of Finance and Director of Public Works) 10. RESOLUTION 19389, GRANTING AUTHORITY FOR SETTLEMENT OF CLAIMS ARISING OUT OF THE FEBRUARY 6, 1998 SINK HOLE ON MALTA AVENUE AND APPROPRIATING FUNDS THEREFOR (4/STH'S VOTE REQUIRED) This action will increase the settlement authorization previously granted for property damage claims arising out of the February 6, 1998, sink hole on Malta Avenue and will appropriate funds for their resolution. Staff recommendation: Council adopt the resolution. (Director of Human Resources) II. RESOLUTION 19390, APPROVING THE RECLASSIFICATION OF ONE FIRE ENGINEER POSITION TO A FIRE CAPTAIN TO AUGMENT THE TRAINING DIVISION AND PROVIDE SUPPORT TO THE COMMUNICATIONS CENTER Agenda 4 March 16, 1999 CONSENT CALENDAR (Continued) Human Resources staff has evaluated the Fire Department's Training Division resulting in the aforementioned recommendation. The impetus for the recommendation is a combination of a variety of factors: Computer Aided Dispatch, Mobile Data Computers, 800 Mhz radio communications, increased workload in the Training Division, and reassignment of the Principal Management Assistant to the Nature Center. Staff recommendation: Council adopt the resolution. (Director of Human Resources) 12..A. RESOLUTION 19391, APPROVING FINAL MAPS OF TRACT NUMBER 92-02, SALT CREEK RANCH, NEIGHBORHOOD 2, UNITS 6 THROUGH 10, ACCEPTING ON BEHALF OF THE CITY PUBLIC STREETS AND EASEMENTS GRANTED ON SAID MAPS WITHIN SAID SUBDIVISIONS, ACKNOWLEDGING ON BEHALF OF THE CITY ALL OPEN SPACE LOTS OFFERED ON SAID MAPS WITHIN SAID SUBDNISIONS, AND APPROVING SUBDNISION IMPROVEMENT AGREEMENTS FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISIONS, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS B. RESOLUTION 19392, APPROVING SUPPLEMENTAL SUBDNISION IMPROVEMENT AGREEMENT FOR TRACT NUMBER 92-02, SALT CREEK RANCH, NEIGHBORHOOD 2, UNITS 6 THROUGH 10, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT On October 6, 1992, Council approved the Tentative Subdivision Map for Tract 92-02, Salt Creek Ranch. On that tentative map, neighborhood boundaries were delineated. The Final Maps, Subdivision Improvement Agreements, and Supplemental Subdivision Improvement Agreement for Neighborhood 2, Units 6 through 10, are now before Council for consideration and approval. Staff recommendation: Council adopt the resolutions. (Director of Public Works) 13 A RESOLUTION 19393, APPROVING RESTATEMENT OF SUBDNISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY EASTLAKE SOUTH GREENS, UNIT 16 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT B. RESOLUTION 19394, APPROVlNG RESTATEMENT OF SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY EASTLAKE SOUTH GREENS, UNIT 10 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT C. RESOLUTION 19395, APPROVING REST A TEMENT OF SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY BALDWIN COMPANIES, NEIGHBORHOOD 3, UNIT 7 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT Agenda 5 March 16, 1999 CONSENT CALENDAR (Continued) Kaufman and Broad Coastal, Inc. is the Guest Builder of the following subdivision neighborhoods and is requesting a restatement of the following Subdivision Improvement Agreements in order to substitute their bonds for those of the original owners: EastLake South Greens, Unit 16; EastLake South Greens, Unit 10; and Baldwin Companies, Neighborhood 3, Unit 7. Staff recommendation: Council adopt the resolutions. (Director of Public Works) ORAL COMMUNICATIONS PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 14. PUBLIC HEARING PCC-99-26 REQUEST TO CONSTRUCT, OPERATE AND MAINTAIN FIVE 75 FOOT HIGH MONOPOLE TYPE AM TRANSMISSION ANTENNA ON PROPERTY OWNED BY THE OT A Y W A TERDISTRICT ADJACENT TO VILLAGE FIVE OF THE OTAY RANCH - APPLICANT PACIFIC SPANISH NETWORK, INC, A.K.A. KURS 1040 AM, SAN DIEGO The Applicant is proposing to construct, operate and maintain five 75 foot high monopole type AM transmission antennas on 6.34 acres of a larger II acre site which is owned by the Otay Water District. The site is located approximately 2,600 feet south of Otay Lakes Road and 2, I 00 feet southwest of East Lake High SchooL The site is surrounded by Village Five in the Otay Ranch on the north, south and west. Rather than constructing the traditional lattice tower normally associated with AM radio transmission, the Applicant will be utilizing a newer technology that uses large monopole/whip type antenna. Staff recommendation The public hearing be continued to March 23, 1999. (Director of Planning and Building) 15. PUBLIC HEARING PCM 95-01B AMENDING THE OTAY RANCH SPA ONE PUBLIC FACILITIES FINANCING PLAN TO EXPEDITE OLYMPIC PARKW A Y CONSTRUCTION (CONTINUED FROM MARCH 2, 1999) This is a proposal to amend the Otay Ranch SPA One Public Facilities Financing Plan, changing the implementation threshold for Paseo Ranchero and Olympic Parkway. Staff recommendation: The public hearing be continued to March 23, 1999. (Director of Planning and Building) ITEMS PULLED FROM THE CONSENT CALENDAR Agenda 6 March 16, 1999 OTHER BUSINESS 16. CITY MANAGER'S REPORTS A. Scheduling of meetings. 17. MAYOR'S REPORTS A. Ratification of appointment to the Board of Appeals and Advisors - James 1. Monaghan (to fill vacancy created by Commissioner Gingerich, whose term expired June 30, 1998). 18. COUNCIL COMMENTS ADJOURNMENT to a Closed Session and thence to the Regular Meeting of March 23, 1999, at 6:00 p.m. in the Council Chambers. ***Ajoint meeting of the City COllncil/Redel'elojJment Agency will be held immediately following the City COllncil meeting. *** March 11, 1999 TO: FROM: The Honorable Mayor and City Council David D. Rowlands, Jr., City Manager~ SUBJECT: City Council Meeting of March 16,1999 This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, March 16, 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 observance of actions taken in Closed Session on 3/2/99, there were no actions taken which are required under the Brown Act to be reported. IT IS RECOMMENDED THAT THIS LETTER BE RECENED AND FILED. 5b. This is a letter from Thomas Mooney of 524 Manzanita Street requesting that the first twenty feet of curb on Manzanita Street at the corner of Oleander Avenue be painted red. Mr. Mooney indicates that cars parked too close to the corner have caused several "close calls" for cars turning the corner onto Manzanita Street. Chula Vista Municipal Code Section 10.52.070 prohibits parking within twenty feet of a crosswalk at an intersection and the area requested to be painted coincides with that regulation. Upon receipt of the letter, staff investigated the situation, found that the request had merit and painted the curb red during the week of March 1,1999. IT IS RECOMMENDED THAT THIS LETTER BE RECENED AND FILED. 5c. This is a request from F. Ben Eberle requesting that Business License Fees be waived for the "Taste of the Arts" festival scheduled for April 10, 1999. IT IS RECOMMENDED THAT THE BUSINESS LICENSE FEE BE WANED FOR THIS ONE-DAY EVENT. 5d. IT IS RECOMMENDED THAT BRENT CURD'S RESIGNATION FROM THE CULTURAL ARTS COMMISSION BE ACCEPTED WITH REGRET AND THAT THE CITY CLERK BE DIRECTED TO POST IMMEDIATELY ACCORDING TO THE MADDY ACT IN THE CLERK'S OFFICE AND THE PUBLIC LIBRARY. DDR:mab Date: ~V?- :-~~ ~~~~ ~~~~ - - -- CllY OF CHUlA VISTA OFFICE OF THE CITY ATTORNEY March 8, 1999 The Honorable Mayor and city council John M. Kaheny, City Attorney ~1C:- Report Regarding Actions Taken in Closed Session for the Meetings of 3/2/99 To: From: Re: The city council of the city of Chula Vista met in Closed Session on 3/2/99 to discuss: Conference with Leqal Counsel - Existing Litigation pursuant to Government Code Section 54956.9(a): Workers Compensation Claim Numbers 1090123; CH930090, CH950009; CH950140. The Redevelopment Agency of the City of Chula Vista met in Closed Session on 3/2/99 to discuss: Conference with Real Prooertv Neqotiator - Pursuant to Government Code section 54956.8: Property: Negotiating Parties: Under Negotiation: Property: Negotiating Parties: Under Negotiation: Property: Negotiating Parties: Under Negotiation: Assessor Parcel Nos. 565-310-09; 565-310- 25 (approximately 6.35 acres located at the northwest corner of 1-5 and E street) Redevelopment Agency (Chris Salomone) and city of San Diego Purchase and terms for disposition Approximately 4 acres at the southeast corner of 1-5 and SR-54 City and Redevelopment Agency of Chula vista (Chris Salomone) and CalTrans Purchase and terms for disposition/ acquisition Assessor Parcel No. 562-310-45 (approximately 14.56 acres at the southeast corner of National City Blvd. and C Street) City and Redevelopment Agency of Chula vista (Chris Salomone) and Wayne Ansley Purchase and terms for disposition/ acquisition ~-)/) - / 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) I 409-5823 "7;; ~-C.lrsmlrIls.)dedP48 The Honorable Mayor and City Council March 8, 1999 Page Two Conference with Leqal Counsel reqardinq Anticipated Litiqation - Pursuant to Government Code Section 54956.9(b). Contemplated use of eminent domain by the City of San Diego (Metropolitan Waste Water Department or its affiliates) to acquire Agency owned property. Conference with Real Propertv Neqotiator - Pursuant to Government Code section 54956.8. Property: 340-368 Bay Boulevard (5 parcels totaling 3.65 acres) 567-022-35 340 Bay Blvd. 1. 02 acres 567-022-17 350 Bay Blvd. 0.65 acres 567-022-31 360 Bay Blvd. 0.73 acres 567-022-33 364 Bay Blvd. 0.63 acres 567-022-28 368 Bay Blvd. 0.62 acres Negotiating Parties: Under Negotiations: City/Redevelopment Agency Salomone) ; San Diego Unified District; B. F. Goodrich Purchase/lease terms and conditions. (Chris Port 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.oo s/)/~ CITY OF CHULA VISTA Thomas R. Mooney 524 Manzanita St Chula Vista, 91911-2507 ..----- I' 1-' U', 1,10 RECEIVEP'-- FEB 7 '99 FEB 25 P3:47 , -~l 1 I" 'cl ..--"'-~- City ofChula Vista The Honorable Mayor and Council 276 4th Avenue Chula Vista, CA 91910 CITY OF CHULA-VIST I, CITY CLERK'S OFFICI:. February 23, 1999 Subject: Unsafe parking on Manzanita Street Dear Honorable Mayor and Council, Request: Paint the first twenty feet of Manzanita Street curbing red to prohibit parking. Rationale: Many residents living in the apartments/condominiums on Telegraph Canyon Rd at the north end of Oleander St park their extra vehicles on Manzanita S1. I do not object to this legal use of public parking space but am concerned that people often park on the corner, or so close to the comer that it creates a significant safety hazard for cars coming up the hill and turning right onto Manzanita St. I have personally experienced several "close calls" because of cars parked on or close to the comer. I have confirmed with the Chula Vista Police Department that the current regulation requires one to park at least twenty feet from a comer. Please paint our curb red and prohibit parking within twenty feet of the comer of Manzanita St before we experience a significant accident. Thank you for your consideration. ~~~r 619-656-6312 (voice & fax) CC' ~~~T VfRmEN COMMU'-A-P~~1 0{:; ??hJ 5'0--/ -.'.-------] r;::::;--, (;) p, n nn , ' r-, I !lol IS ~ ,?, U \~ 1- II Inl---- ...- ,I ),\...' i, , I r i MAR - L! IOOa Kettle Kernels Popcorn 9648 Paseo Montril San Diego, CA 92129 March 2, 1999 L______ --- ,: - I _ I C;~'~." ",::'~r.. ','i\ _I City of Chula Vista Office of the Mayor & City Council 276 4th Avenue Chula Vista, Ca 91910 Dear Mayor and Council Members, C")n ===i=i -<-< no r- .., m" ~~ J, 0)> -0 ,,< - :;:. V) C,;--i \.u I have applied to participate as a food vendor in this years' Chula Vista "taste ofV1 the Arts" festival scheduled for AprillO, 1999. Ric Todd of the Chula Vista Office of Cultural Arts coordinates the event. ~ ;I ~ ITI (") ITI < ITI o The application materials mention that food vendors are responsible to obtain a Chula Vista Business License from the Finance Dept. prior to the event. My understanding is that on occasion, the Council may waive this license fee for some City events. This letter is to specifically request the Council to waive any Business License fees for my booth as well as others participating in this event. In support of my request, I am enclosing copies of two information pages that were included with vendor participant mailings. They mention objectives that should be considered when making your decision. Thank you for your consideration of my request. Sincerely, ~ F. Ben Eberle CC: Ric Todd wlo enclosures Enclosures WRITTE~~ r'::;.' ?,,~,t'J~ QJN meA TIONS ~L- :1/Jt)1'1' u~ . r:/~ Y' f~ \ r':/' J 'L):'" /I;'~ ~ L - c. c.: Counc., I c<,. Zif !if>') "TASTE OF THE ARTS, by the Bay" ELEMENTS OF ruE FESTIVAL: 1. Artist and Craftspeople 2. Children's Interactive Art Festival 3. Performing Art Stages: Community, Schools, Professional 4. Food Vendors 5. Salsa Making Contest: Commercial E< Non- Commercial Judging Qualifications: a. "The Hottest" b. "Sweetest with a Bite" c. "Most Unusual Usage" 6. Silent Art Auction, fund raiser for local arts organizations. GOALS: "*1. Promotion of Cultural Tourism for the city and an increased economic impact for artist and the community. 2. Using the arts as a venue to bridge understanding of divergent groups of participants and audiences. 3. Increase the financial resources and business backing needed to develop and organize said event. OBJECTIVES: 1. Develop a one day event that provides community involvement and opportunities at all levels to support, participate and learn. "* 2. Produce and annual event that becomes an economic impact and marketing tool for the City of Chula Vista, artist and sponsors through regional, state and national promotional efforts. 3. Provide the community and its visitors with affordable and creative entertainment. Sc - d--- CHULA VISTA "TASTE OF THE ARTS" FACf SHEET ---? 0T ASTE OF THE ARTS," showcases the arts, cultural heritage and diversity in a celebration of LCommunity spirit and pride. With all people sharing a commitment to "Life long learning" through the arts, cultures and humanities at the center of the days activities, this art festival seeks to provide a multifaceted gathering of education, discovery and fun. "TASTE OF THE ARTS," will provide an avenue for the community and regions to showcase and express the excellence that continues and moves us towards the twenty-first century. This event will feature three performing stages offering continuous entertainment, fine arts and upscale craft vendors, ethnic foods, children's interactive art fair, salsa blends for judging, visual art and dance demonstrations and much more. WHEN: Saturday, April 10,1999 9:00 - 5:00 p.m. WHERE: Marina View Park, Chula Vista West end of "J" Street next to 1-5 COST: FREE WHO: Over 56,000 people have attended the previous festivals, from San Diego County, South Bay regions, Southern California and the Tijuana, Mexico border region. Families, school children, teens, seniors tourist, people of all ages, culture and ethnic backgrounds. SPONSORS: "TASTE OF THE ARTS," is sponsored by the City of Chula Vista, Department of Library and Recreation, Office of Cultural Arts; San Diego Unified Port District; Pacific Waste Services; San Diego National Bank; San Diego UnionJTribune; Pacific Bell; Cubic Corporation and the Hewlett-Packard Foundation. In-kind donations are solicited from local businesses and your generous contribution will help to make this community event grow. This Festival is accessible by bike, trolley, bus, and car. Parking near the park is available with free shuttle setvice. Handicapped parking is also available. For general information about "Taste Of The Arts, 99" : Contact Ric Todd, Cultural Arts Coordinator and Chairperson at (619) 585-5627 or FAX (619) 585-5612 THERES SOMETHING IN IT FOR YOU THE ARTSII " '/ 5L~J ., ,'11K:. March 2, 1999 Her Honor the Mayor City Hall 276 Fourth Avenue Chula Vista, California 91910 ~" ~ r; ~ ~ ~a Ie 1'-" ".. -_.-.:;::. I MAR - 5 1000 I L " orricES I :STA" ~ Dear Madam, Because of your demonstrated disregard for the findings and recommendations of duly appointed Commissioners. I find it counterproductive to remain as a Commissioner on the Cultural Arts Commission. Effective March 8,1999 I resign as Commissioner, Cultural Arts Commission. Sincerely yours, ~~~ 33 Montebello St. Chula Vista, Ca. 91910 cc: Councilman, John S. Moot Stephen C. Padilla Patty Davis Mary Salas C;+y Qle/lL Al Gore Chairman, Cultural Arts Commission C'">C'"> ~ .~~ ::0 -<-< c")o I fT1 ,'"Tl () rTlC") fTl ::O:x: J, ~c: < '" ' 0'P " !TI ..,-,<:: - Cl .~V: .:;, C')~' "T.' VI CITY COUNCIL AGENDA STATEMENT Item: 6 -- Meeting Date:. 3/16/99 ITEM TITLE: Ordinance }.. 7 ? 6 Establishing Chapter 2.02 of the Chula Vista Municipal Code relating to the City of Chula Vista conflict of interest code and list of designated employees who are required to file statements of economic interest SUBMITTED BY: City Attorney p-L (4/5ths Vote: Yes No--X) RECOMMENDATION: That the City Council adopt the proposed ordinance implementing a conflict of interest code for the City of Chula Vista as required by the Political Reform Act (Govt Code section 87000 et seq.). BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: Currently, the Chula Vista conflict of interest code is adopted by resolution. This resolution must be amended every time the Fair Political Practices Commission (FPPC) makes an applicable change to the regulations implementing the provisions of the Political Reform Act Government Code section 87300 requires cities to adopt a conflict of interest code. The attached ordinance includes all necessary changes to bring the City into compliance with state law and the FPPC regulations. The ordinance incorporates a number of changes including updating the designated employee list, adding the requirement for filing an initial, annual, and leaving office statement, and adding provisions stating when disqualification is required. One major change involves modifying the reporting requirements for consultants hired by the City. The current resolution includes language relating to consultants that the FPPC has suggested is insufficient The proposed ordinance incorporates language recommended by the FPPC requiring the City Manager to determine, on a case by case basis, when a consultant must file and what disclosure categories are applicable to the contract To accomplish these changes, the proposed ordinance adopts the model ordinance drafted by the FPPC (Attachment 1). By adopting the model ordinance, the City's ordinance will not need to be amended each time the FPPC modifies the regulations. The City's ordinance incorporates by reference any changes enacted by the FPPC. b-/ The ordinance must include a list of designated employees, by job title, who are required to file an Annual Statement of Economic Interest. Attached is a proposed list of designated employees (Attachment 2). An employee is required to file an annual Statement of Economic Interest if the employee "makes or participates in the making of governmental decisions." (2 Cal. Code of Regs. Section 18700) "Making a governmental decision" includes: (I) voting on a matter; (2) appointing a person; (3) obligating or committing the agency to any course of action; or (4) entering into any contractual agreement on behalf of the agency. "Participating in the making of a decision" means the person: (I) negotiates, without significant substantive review, with a governmental entity or private person regarding the decision; or (2) advises or makes recommendations to the decision maker, by conducting research or an investigation, preparing or presenting a report, analysis or opinion which requires the exercise of judgement on the part on the employee and the employee is attempting to influence the decision. The designated employee list also contains those boards and commissions whose members make governmental decisions. Section 2.02.040 of the proposed ordinance excludes certain boards and commissions from the filing requirement. These boards and commissions have been determined to be advisory only. The members of these boards and commissions do not make or participate in the making of governmental decisions as defined above and, consequently, are not required to file an annual Statement of Economic Interest. The advisory boards and commissions are listed in section 2.02.040(c). Absent from the list of designated employees are those positions specifically required to file an annual statement of economic interest pursuant to Government Code section 87200. This section requires the Mayor, Council members, City Manager, City Attorney, City Treasurer and Planning Commission members to file statements annually. FPPC regulations indicate these positions should not be included on the list of designated employees. FISCAL IMP ACT: None to the City. Attachment: 1. FPPC Model Ordinance 2. List of Designated Employees t -;2 ORDINANCE NO. J 7 ?l AN ORDINANCE OF THE CITY OF CHULA VISTA EST ABLISHlNG CHAPTER 2.02 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO CONFLICT OF INTEREST The City Council of the City of ChuIa Vista does ordain as follows: SECTION 1: That Chapter 2.02 be added to the ChuIa Vista Municipal Code to read as follows: Sec. 2.02.010 Purpose and Intent. The City Council intends to implement Government Code Sections 87300 through 87313 pertaining to conflict of interest codes for local agencies. The City Council also intends to implement all appropriate penalties for persons required to file under this ordinance who fail to do so in a timely fashion. Sec. 2.02.020 The City Council as Code Reviewing Body for Conflict ofInterest. The City Council shall serve as the Code Reviewing Body under Government Code Section 87303 for review and adoption of the conflict of interest codes for all persons associated with the City Chula Vista and required to file a statement of economic interest with the Fair Political Practices Commission. All Statements of Economic Interest shall be filed with the City Clerk who shall be responsible for filing with the Fair Political Practices Commission. Sec. 2.02.030 Conflict ofInterest Code of the City ofChula Vista. (a) The Political Reform Act, Government Code Sections 81000, et seq., requires local government agencies to adopt and promulgate Conflict ofInterest Codes. The Fair Political Practices Commission has adopted a regulation, 2 Cal. Code of Regs. Section 18730, which contains the terms of a standard model Conflict ofInterest Code, which is incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings. Therefore, the terms of 2 Cal. Code of Regs. Section 18730 and any amendments to it, except Section 9.5, duly adopted by the Fair Political Practices Commission, along with the attached Appendix in which officials and employees are designated and disclosure categories are set forth, are hereby incorporated by reference and constitute the Conflict ofInterest Code of the City ofChula Vista. (b) Designated employees shall file statements of economic interests based on the below listed disclosure categories with the Fair Political Practices Commission which will make the statements available for public inspection and reproduction pursuant to Government Code Section 81008. t~;J (c) Disclosure Categories are: 1. Investments in real property. 2. Interests in real property. 3. Investments, interests in real property and sources of income subject to the regulatory, permit or licensing authority of the department. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City ofChula Vista or Redevelopment Agency to provide services, supplies, materials, machinery or equipment. 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. 7. Business positions. Sec. 2.02.040 Exception for Solely Advisory Boards and Commissions. (a) The City Council finds that certain of the City's boards and commissions, as listed in subsection (c), are "solely advisory" within the meaning of Government Code Section 87100, and are therefore, not required by law to have conflict of interest codes. (b) For those boards and commissions not required by law to have conflict of interest codes, the City Council declares that citizens serving as volunteers on those boards and commissions shall not be required to complete and submit economic disclosure forms and shall not be required to disqualify themselves from deliberations or decision making for economic reasons (c) Advisory Boards and Commissions (1) Child Care Commission (2) Commission on Aging Members (3) Cultural Arts Commission (4) Housing Advisory Commission (5) Human Relations Commission Members (6) International Friendship Commission Members (7) Parks and Recreation Commission Members (8) Resource Conservation Commission Members (9) Safety Commission Members (10) United Nations Day Committee (11) Veterans Advisory Committee (12) Youth Commission &:_1/ (c) Disclosure Categories are: 1. Investments in real property. 2. Interests in real property. 3. Investments, interests in real property and sources of income subject to the regulatory, permit or licensing authority of the department. 4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City ofChula Vista or Redevelopment Agency to provide services, supplies, materials, machinery or equipment. 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. 7. Business positions. Sec. 2.02.040 Exception for Solely Advisory Boards and Commissions. (a) The City Council finds that certain of the City's boards and commissions, as listed in subsection (c), are "solely advisory" within the meaning of Government Code Section 87100, and are therefore, not required by law to have conflict of interest codes. (b) For those boards and commissions not required by law to have conflict of interest codes, the City Council declares that citizens serving as volunteers on those boards and commissions shall not be required to complete and submit economic disclosure forms and shall not be required to disqualify themselves from deliberations or decision making for economic reasons (c) Advisory Boards and Commissions (1) Child Care Commission (2) Commission on Aging Members (3) Cultural Arts Commission (4) Housing Advisory Commission (5) Human Relations Commission Members (6) International Friendship Commission Members (7) Parks and Recreation Commission Members (8) Resource Conservation Commission Members (9) Safety Commission Members (10) United Nations Day Committee (11) Veterans Advisory Committee (12) Youth Commission &:_1/ SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented and Approved as to form by *~. ,J ome\attomey\conf1ict of interest.doc &-~ DESIGNATED EMPLOYEES -h- Mayor/CololReilmemberc/Cfiairrmm/ Members oftbe Redevelopment ,'\geney 2. City Maflager 3. City,^.ttomey 4. finlHlee Direelor 5. ,^.sst. fiRaRee Direetor 6. Members ofPlarJling Commissiclfl 7. 8. 9. 10. II. 12. Director of Community Development City Clerk Deputy City Clerk Assistant City Attorneys Deputy City Attorney All other Dept. Heads, Asst. and Deputy City Managers and Assistant and Deputy Dept. Heads 13. ,'\Rimal CORtrol Maflager 14. ,'\Gsistant 10 Mayor aRd COaReil 15. 16. 17. +& 19. 20. Battalion Chief BEBC Manager BECA Board of Directors BECA Contract Manager BECA Director Building and Housing Inspectors (Senior, II and 1) and Code Enforcement Officers 6~b DISCLOSURE CATEGORY 1,2,7 1,2,7 1,2,7 1,2,7 1,2,7 1,2,7 3,6 1,2,7 1,2,7 1,2,7 1,2,7 3, 7 21. Building and Services Superintendent 3, 5, 6 22. Budget Manager 23. Business Office Manager 5 24. Buyer I, 7 25. Chief Plans Examiner 3 26. Civil Engineer 3,4,5 27. Collections Supervisor 2,4,7 28. Conservation Coordinator 3, 4, 6, 7 29. Cultural Arts Coordinator 3,4,6,7 30. Development Projects Manager 3,4,6,7 31. Educational Services Coordinator 3,4,6,7 32. Economic Development Coordinator 3,4,6,7 33. Environmental Resource Manager 3,4,6,7 34. Environmental Review Coordinator 3,4,6,7 35. Fleet Manager 5,6 36. Fire Marshall 3,6 37. Geographic Information Systems Mana~er 3,4,6,7 38. Housing Coordinator 3,4,7 39. Open Space Coordinator 4,6 40. Open Space Inspector 4,6 4l. Landscape Architect 2,4,7 42. LilmH)' Automation Maflager t -7 43. Permit Engineer 44. Plans Examiner 1,2,7 45. Police Captain 1,2,7 46. Principal Community Development Specialist 3,4,6,7 47. Principal Librarian 6 48. Principal Management Analyst 5, 7 49. Principal Management Ass!. 5, 7 50. Principal Planner 1,2,7 51. Principal Revenue Analyst 1,2,7 52. Public Information Coordinator 4, 5 53. Public Works Inspector (Senior, I and Il) 3,4 54. Public Works Maintenance Superintendent 1,2,7 55. Purchasing Agent I, 7 56. Redevelopment Coordinator 3,4,6,7 57. Revenue and Recovery Manager 1,2,7 58. Risk Manager I, 7 59. Senior Accountant 3 60. Senior Civil Engineer 3,4,5 61. Senior Economic Development Specialist 3,4,6,7 62. Senior Librarian 5,6,7 63. Senior Parks Supervisor 3,6 64. Senior Personnel Analyst 3,4,6,7 65. Senior Planner 2,4,7 t -6 66. 67. 68. 69. 70. 71. 72. 73. 74. Senior Recreation Supervisor 1,2,7 Traininl: and Development Coordinator Transit Coordinator Traffic Engineer Board of Appeals and Advisors Members Board of Ethics Members Board of Library Trustee Members Charter Review Commission Members 3,4,6,7 5, 7 3,4,5 2,5 1,2,7 2,6,7 1,2,7 3 Civil Service Commission Members 75. CormnissioR OR f.giRg Members 76. 77. 78. Design Review Committee Members Economic Development Commission Members Growth Management Oversight Committee Members 2,4,7 1,2,7 2,4,7 79. HBffian RelatioRs Commission Members 80. Iatematioflal Frieadshi]3 CommissioR Members 8l. 82. 83. Mobile Home Rent Review Committee Otay Valley Road Project Committee Members Parks and RecreatioR CemmissioR Members 1,2,7 3, 7 2,4,7 84. ReSOHrce CoaservatioR CommissioR Members 85. Safety CommissioR Members 86. SElHthwest Prej ost ,"'rea Committee Members 87. Town Centre Project Area Committee Members 3, 7 88. Consultants* t~~ (* Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code.) &-/0 http://www.fppc.ca.gov/legal/regs/18730.htm (Regulations of the Fair Political Practices Commission, Title 2, Division 6 of the California Code of Regulations.) 18730. Provisions of Conflict of Interest Codes (a) Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation ofa conflict of interest code within the meaning of Government Code Section 87300 or the amendment of a conflict of interest code within the meaning of Government Code Section 87306 if the terms of this regulation are substituted for terms ofa conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest. (b) The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows: (1) Section 1. Definitions. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code. (2) Section 2. Designated Employees. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. (3) Section 3. Disclosure Categories. This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interests pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq. In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies.ill Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee's disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. ~~// 10f9 2/22/99 10:42 AM http://www.fppc.ca.gov/legal/regs/]8730.htm (4) Section 4. Statements of Economic Interests: Place of Filing. The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code.m (5) Section 5. Statements of Economic Interests: Time of Filing. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April I. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: (I) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. (6) Section 6. Contents of and Period Covered by Statements of Economic Interests. (A) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the ] 2 months prior to the effective date of the code. (B) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively. t -1c2 20f9 2/22/99 ] 0:42 AM http://www.fppc.ca.gov/legallregs/18730.htm (C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later. (D) Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date ofJeaving office. (7) Section 7. Manner of Reporting. Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure. When an investment or an interest in real propertyill is required to be reported,ill the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investment or interest in real property exceeds one thousand dollars ($1,000), exceeds ten thousand dollars ($10,000), or exceeds one hundred thousand dollars ($100,000). (B) Personal Income Disclosure. When personal income is required to be reported,ill the statement shall contain: I. The name and address of each source of income aggregating two hundred fifty dollars ($250) or more in value or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), or greater than ten thousand dollars ($10,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; 5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan. (C) Business Entity Income Disclosure. When income ofa business entity, including income ofa sole proprietorship, is required to be reported,W the statement shall contain: t -j) 3of9 2/22/99 10:42 AM http://www.fppc.ca.gov/legallregs/18730.htm 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. (8) Section 8. Prohibition on Receipt of Honoraria. (A) No member of a state board or commission, and no designated employee of a state or local govermnent agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506. (8.1) Section 8.1 Prohibition on Receipt of Gifts in Excess of $290. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $290 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (e), (t), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section. (8.2) Section 8.2. Loans to Public Officials. (A) No elected officer ofa state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local govermnent agency in which the elected officer holds office or over which the elected officer's agency has direction and control. (B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (t), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local govermnent agency in which the public official holds office or over which the public official's agency has direction and control. ~~/Ll 40f9 2/22/9910:42 AM http://www.fppc.ca.gov/legal/regs/18730.htm This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of his_or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (t), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in theJender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed two hundred fifty dollars ($250) at any given time. 4. Loans made, or offered in writing, before January I, 1998. (8.3) Section 8.3. Loan Terms. (A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for t-/S- 5of9 2/22/9910:42 AM http://www.fppc.ca.gov/legallregs/18730.htm any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January I, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. (8.4) Section 8.4. Personal Loans. (A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances: I. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. (B) This section shall not apply to the following types ofloans: I. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. (C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. (9) Section 9. Disqualification. No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: ~-/~ 6of9 2/22/99 10:42 AM http://www.fppc.ca.gov/legal/regs/18730.htm (A) Any business entity in which the designated employee has a direct or indirect investment worth one thousand dollars ($1,000) or more; (B) Any real property in which the designated employee has a direct or indirect interest worth one thousand dollars ($1,000) or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hundred fifty dollars ($250) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $290 or more provided to; received by, or promised to the designated employee within 12 months prior to the time when the decision is made. (9.3) Section 9.3. Legally Required Participation. No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. (9.5) Section 9.5. Disqualification of State Officers and Employees. In addition to the general disqualification provisions of Section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more. (10) Section 10. Manner of Disqualification. When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act must be accompanied by disclosure of the disqualifying interest. In the case of a voting body, this determination and disclosure shall be made part of the agency's official record; in the case ofa designated employee who is the head of an agency, this determination and disclosure shall be made in writing to his or her appointing authority; and in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employee's supervisor. (11) Section II. Assistance of the Commission and Counsel. Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. (12) Section 12. Violations. This code has the force and effect oflaw. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the t ~ /7 70f9 2/22/99 10:42 AM http://www.fppc.ca.gov/legal/regs/18730.htm Political Reform Act, Government Code Sections 81000 - 91015. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. Note: Authority: Section 83112, Gov. Code Reference: Sections 87103(e), 87300-87302, 89501, 89502, and 89503, Gov. Code Historv (I) New section filed 4-2-80 as an emergency; effective upon filing. Certificate of Compliance included. (2) Editorial correction. (3) Amendment of subsection (b) filed 1-9-81; effective thirtieth day thereafter. (4) Amendment of subsection (b)(7)(B)1. filed 1-26-83; effective thirtieth day thereafter. (5) Amendment of subsection (b)(7)(A) filed 11-10-83; effective thirtieth day thereafter. (6) Amendment filed 4-13-87; effective thirtieth day thereafter. (7) Amendment of subsection (b) filed 10-21-88; effective thirtieth day thereafter. (8) Amendment filed 8-28-90; effective thirtieth day thereafter. (9) Amendment filed 8-7-92; effective thirtieth day thereafter. (10) Amendment filed 2-5-93; effective upon filing. (II) Amendment filed 3-14-95; effective upon filing. (12) Amendment filed 10-23-96; effective upon filing. (13) Amendment filed 4-9-97; effective upon filing. (14) Amendment filed 8-24-98; effective upon filing. I. Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as ifit were an original. See Government Code Section 81004. 2. See Government Code Section 810 I 0 and 2 Cal. Code of Regs. Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 3. For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. ~ -/6 80r9 2/22/9910:42 AM http://www.fppc.ca.gov/legallregs/18730.htm 4. Investments and interests in real property which have a fair market value of less than $1,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5. A designated employee's income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal govermnentagency. 6. Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. t ~/c; 90f9 2/22/99 10:42 AM CITY COUNCIL AGENDA STATEMENT Item:-2 Meeting Date: 3/16 / 9 9 ITEM TITLE: /' Resolution )9 J'iJ':.> Adopting Council Policy requiring the disclosure of certain ownership or financial interests, payments, or campaign contributions prior to discretionary action by the City Council, Planning Commission and all other official bodies of the City SUBMITTED BY: City AttorneyrV (4/5ths Vote: Yes No-X) City Council recently voted to amend Chula Vista Municipal Code section 2.52.040, redefining the term "contribution." During that discussion reference was made to the "City of Chula Vista Disclosure Statement" form. This is a form the applicant or contractor for a project completes prior to any discretionary action being taken on their project. This office was requested to review the form and return to Council with a revised form incorporating the recent changes to the City's definition of campaign contribution. RECOMMENDATION: That the City Council adopt the proposed policy requiring use of the revised "City ofChula Vista Disclosure Statement." BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: For approximately the past 7-8 years the City has required the filing of a disclosure statement by applicants and contractors prior to any discretionary action being taken by the Council, Planning Commission, boards and commissions of the City. At the January] 2, 1999, meeting, the Council approved an amendment to the campaign contribution ordinance allowing a Councilmember to raise funds to retire a legal debt incurred pursuing an action to enforce a perceived right or interest guaranteed under either the Election Code or the Municipal Code. During the discussion prior to adoption of that amendment, Council raised the issue of reporting requirements and disclosure as it would relate to the additional funds raised. Council requested this office revise the disclosure form currently in use to include a provision to require disclosure of funds raised pursuant to this amendment. 7~/ While reviewing the disclosure form it was determined additional changes were necessary to ensure it reflected the current state of the law. Those changes have also been incorporated into the revised form. It was also determined that there was no legislative authority under which this policy was being implemented. In an effort to address that, the attached Council policy is presented for consideration. The proposed policy provides authority and guidelines for the use of this disclosure form. FISCAL IMPACT: None to the City. Attachment: 1. Council Policy 2. Revised City ofChula Vista Disclosure Statement 7-;L SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented and Approved as to form by *~. ,J ome\attomey\conf1ict of interest.doc &-~ DESIGNATED EMPLOYEES -h- Mayor/CololReilmemberc/Cfiairrmm/ Members oftbe Redevelopment ,'\geney 2. City Maflager 3. City,^.ttomey 4. finlHlee Direelor 5. ,^.sst. fiRaRee Direetor 6. Members ofPlarJling Commissiclfl 7. 8. 9. 10. II. 12. Director of Community Development City Clerk Deputy City Clerk Assistant City Attorneys Deputy City Attorney All other Dept. Heads, Asst. and Deputy City Managers and Assistant and Deputy Dept. Heads 13. ,'\Rimal CORtrol Maflager 14. ,'\Gsistant 10 Mayor aRd COaReil 15. 16. 17. +& 19. 20. Battalion Chief BEBC Manager BECA Board of Directors BECA Contract Manager BECA Director Building and Housing Inspectors (Senior, II and 1) and Code Enforcement Officers 6~b DISCLOSURE CATEGORY 1,2,7 1,2,7 1,2,7 1,2,7 1,2,7 1,2,7 3,6 1,2,7 1,2,7 1,2,7 1,2,7 3, 7 21. Building and Services Superintendent 3, 5, 6 22. Budget Manager 23. Business Office Manager 5 24. Buyer I, 7 25. Chief Plans Examiner 3 26. Civil Engineer 3,4,5 27. Collections Supervisor 2,4,7 28. Conservation Coordinator 3, 4, 6, 7 29. Cultural Arts Coordinator 3,4,6,7 30. Development Projects Manager 3,4,6,7 31. Educational Services Coordinator 3,4,6,7 32. Economic Development Coordinator 3,4,6,7 33. Environmental Resource Manager 3,4,6,7 34. Environmental Review Coordinator 3,4,6,7 35. Fleet Manager 5,6 36. Fire Marshall 3,6 37. Geographic Information Systems Mana~er 3,4,6,7 38. Housing Coordinator 3,4,7 39. Open Space Coordinator 4,6 40. Open Space Inspector 4,6 4l. Landscape Architect 2,4,7 42. LilmH)' Automation Maflager t -7 43. Permit Engineer 44. Plans Examiner 1,2,7 45. Police Captain 1,2,7 46. Principal Community Development Specialist 3,4,6,7 47. Principal Librarian 6 48. Principal Management Analyst 5, 7 49. Principal Management Ass!. 5, 7 50. Principal Planner 1,2,7 51. Principal Revenue Analyst 1,2,7 52. Public Information Coordinator 4, 5 53. Public Works Inspector (Senior, I and Il) 3,4 54. Public Works Maintenance Superintendent 1,2,7 55. Purchasing Agent I, 7 56. Redevelopment Coordinator 3,4,6,7 57. Revenue and Recovery Manager 1,2,7 58. Risk Manager I, 7 59. Senior Accountant 3 60. Senior Civil Engineer 3,4,5 61. Senior Economic Development Specialist 3,4,6,7 62. Senior Librarian 5,6,7 63. Senior Parks Supervisor 3,6 64. Senior Personnel Analyst 3,4,6,7 65. Senior Planner 2,4,7 t -6 66. 67. 68. 69. 70. 71. 72. 73. 74. Senior Recreation Supervisor 1,2,7 Traininl: and Development Coordinator Transit Coordinator Traffic Engineer Board of Appeals and Advisors Members Board of Ethics Members Board of Library Trustee Members Charter Review Commission Members 3,4,6,7 5, 7 3,4,5 2,5 1,2,7 2,6,7 1,2,7 3 Civil Service Commission Members 75. CormnissioR OR f.giRg Members 76. 77. 78. Design Review Committee Members Economic Development Commission Members Growth Management Oversight Committee Members 2,4,7 1,2,7 2,4,7 79. HBffian RelatioRs Commission Members 80. Iatematioflal Frieadshi]3 CommissioR Members 8l. 82. 83. Mobile Home Rent Review Committee Otay Valley Road Project Committee Members Parks and RecreatioR CemmissioR Members 1,2,7 3, 7 2,4,7 84. ReSOHrce CoaservatioR CommissioR Members 85. Safety CommissioR Members 86. SElHthwest Prej ost ,"'rea Committee Members 87. Town Centre Project Area Committee Members 3, 7 88. Consultants* t~~ (* Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest disclosure category in the code subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this conflict of interest code.) &-/0 http://www.fppc.ca.gov/legal/regs/18730.htm (Regulations of the Fair Political Practices Commission, Title 2, Division 6 of the California Code of Regulations.) 18730. Provisions of Conflict of Interest Codes (a) Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation ofa conflict of interest code within the meaning of Government Code Section 87300 or the amendment of a conflict of interest code within the meaning of Government Code Section 87306 if the terms of this regulation are substituted for terms ofa conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest. (b) The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows: (1) Section 1. Definitions. The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code. (2) Section 2. Designated Employees. The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on financial interests. (3) Section 3. Disclosure Categories. This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their financial interests pursuant to Article 2 of Chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq. In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply: (A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency; (B) The disclosure assigned in the code of the other agency is the same as that required under Article 2 of Chapter 7 of the Political Reform Act, Government Code Section 87200; and (C) The filing officer is the same for both agencies.ill Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of financial interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those financial interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the financial interests set forth in a designated employee's disclosure categories are the kinds of financial interests which he or she foreseeably can affect materially through the conduct of his or her office. ~~// 10f9 2/22/99 10:42 AM http://www.fppc.ca.gov/legal/regs/]8730.htm (4) Section 4. Statements of Economic Interests: Place of Filing. The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency's conflict of interest code.m (5) Section 5. Statements of Economic Interests: Time of Filing. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment. (B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed. (C) Annual Statements. All designated employees shall file statements no later than April I. (D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office. (5.5) Section 5.5. Statements for Persons Who Resign Prior to Assuming Office. Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement. (A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following: (I) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position. (6) Section 6. Contents of and Period Covered by Statements of Economic Interests. (A) Contents of Initial Statements. Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the ] 2 months prior to the effective date of the code. (B) Contents of Assuming Office Statements. Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively. t -1c2 20f9 2/22/99 ] 0:42 AM http://www.fppc.ca.gov/legallregs/18730.htm (C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee's first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later. (D) Contents of Leaving Office Statements. Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date ofJeaving office. (7) Section 7. Manner of Reporting. Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information: (A) Investments and Real Property Disclosure. When an investment or an interest in real propertyill is required to be reported,ill the statement shall contain the following: 1. A statement of the nature of the investment or interest; 2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged; 3. The address or other precise location of the real property; 4. A statement whether the fair market value of the investment or interest in real property exceeds one thousand dollars ($1,000), exceeds ten thousand dollars ($10,000), or exceeds one hundred thousand dollars ($100,000). (B) Personal Income Disclosure. When personal income is required to be reported,ill the statement shall contain: I. The name and address of each source of income aggregating two hundred fifty dollars ($250) or more in value or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source; 2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), or greater than ten thousand dollars ($10,000); 3. A description of the consideration, if any, for which the income was received; 4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received; 5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan. (C) Business Entity Income Disclosure. When income ofa business entity, including income ofa sole proprietorship, is required to be reported,W the statement shall contain: t -j) 3of9 2/22/99 10:42 AM http://www.fppc.ca.gov/legallregs/18730.htm 1. The name, address, and a general description of the business activity of the business entity; 2. The name of every person from whom the business entity received payments if the filer's pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee's position with the business entity. (E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal. (8) Section 8. Prohibition on Receipt of Honoraria. (A) No member of a state board or commission, and no designated employee of a state or local govermnent agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section. This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506. (8.1) Section 8.1 Prohibition on Receipt of Gifts in Excess of $290. (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $290 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part-time member of the governing board of any public institution of higher education, unless the member is also an elected official. Subdivisions (e), (t), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section. (8.2) Section 8.2. Loans to Public Officials. (A) No elected officer ofa state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local govermnent agency in which the elected officer holds office or over which the elected officer's agency has direction and control. (B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (t), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local govermnent agency in which the public official holds office or over which the public official's agency has direction and control. ~~/Ll 40f9 2/22/9910:42 AM http://www.fppc.ca.gov/legal/regs/18730.htm This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of his_or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender's regular course of business on terms available to members of the public without regard to the elected officer's official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (t), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer's agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in theJender's regular course of business on terms available to members of the public without regard to the elected officer's official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (E) This section shall not apply to the following: 1. Loans made to the campaign committee of an elected officer or candidate for elective office. 2. Loans made by a public official's spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section. 3. Loans from a person which, in the aggregate, do not exceed two hundred fifty dollars ($250) at any given time. 4. Loans made, or offered in writing, before January I, 1998. (8.3) Section 8.3. Loan Terms. (A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans: 1. Loans made to the campaign committee of the elected officer. 2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for t-/S- 5of9 2/22/9910:42 AM http://www.fppc.ca.gov/legallregs/18730.htm any person not otherwise exempted under this section. 3. Loans made, or offered in writing, before January I, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code. (8.4) Section 8.4. Personal Loans. (A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances: I. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired. 2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following: a. The date the loan was made. b. The date the last payment of one hundred dollars ($100) or more was made on the loan. c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months. (B) This section shall not apply to the following types ofloans: I. A loan made to the campaign committee of an elected officer or a candidate for elective office. 2. A loan that would otherwise not be a gift as defined in this title. 3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due. 4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations. 5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy. (C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code. (9) Section 9. Disqualification. No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on: ~-/~ 6of9 2/22/99 10:42 AM http://www.fppc.ca.gov/legal/regs/18730.htm (A) Any business entity in which the designated employee has a direct or indirect investment worth one thousand dollars ($1,000) or more; (B) Any real property in which the designated employee has a direct or indirect interest worth one thousand dollars ($1,000) or more; (C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating two hundred fifty dollars ($250) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made; (D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $290 or more provided to; received by, or promised to the designated employee within 12 months prior to the time when the decision is made. (9.3) Section 9.3. Legally Required Participation. No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made. The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section. (9.5) Section 9.5. Disqualification of State Officers and Employees. In addition to the general disqualification provisions of Section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken: (A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more. (10) Section 10. Manner of Disqualification. When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act must be accompanied by disclosure of the disqualifying interest. In the case of a voting body, this determination and disclosure shall be made part of the agency's official record; in the case ofa designated employee who is the head of an agency, this determination and disclosure shall be made in writing to his or her appointing authority; and in the case of other designated employees, this determination and disclosure shall be made in writing to the designated employee's supervisor. (11) Section II. Assistance of the Commission and Counsel. Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion. (12) Section 12. Violations. This code has the force and effect oflaw. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the t ~ /7 70f9 2/22/99 10:42 AM http://www.fppc.ca.gov/legal/regs/18730.htm Political Reform Act, Government Code Sections 81000 - 91015. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003. Note: Authority: Section 83112, Gov. Code Reference: Sections 87103(e), 87300-87302, 89501, 89502, and 89503, Gov. Code Historv (I) New section filed 4-2-80 as an emergency; effective upon filing. Certificate of Compliance included. (2) Editorial correction. (3) Amendment of subsection (b) filed 1-9-81; effective thirtieth day thereafter. (4) Amendment of subsection (b)(7)(B)1. filed 1-26-83; effective thirtieth day thereafter. (5) Amendment of subsection (b)(7)(A) filed 11-10-83; effective thirtieth day thereafter. (6) Amendment filed 4-13-87; effective thirtieth day thereafter. (7) Amendment of subsection (b) filed 10-21-88; effective thirtieth day thereafter. (8) Amendment filed 8-28-90; effective thirtieth day thereafter. (9) Amendment filed 8-7-92; effective thirtieth day thereafter. (10) Amendment filed 2-5-93; effective upon filing. (II) Amendment filed 3-14-95; effective upon filing. (12) Amendment filed 10-23-96; effective upon filing. (13) Amendment filed 4-9-97; effective upon filing. (14) Amendment filed 8-24-98; effective upon filing. I. Designated employees who are required to file statements of economic interests under any other agency's conflict of interest code, or under Article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original is signed and verified by the designated employee as ifit were an original. See Government Code Section 81004. 2. See Government Code Section 810 I 0 and 2 Cal. Code of Regs. Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer. 3. For the purpose of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer. ~ -/6 80r9 2/22/9910:42 AM http://www.fppc.ca.gov/legallregs/18730.htm 4. Investments and interests in real property which have a fair market value of less than $1,000 are not investments and interests in real property within the meaning of the Political Reform Act. However, investments or interests in real property of an individual include those held by the individual's spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5. A designated employee's income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal govermnentagency. 6. Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer's spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer. t ~/c; 90f9 2/22/99 10:42 AM CITY COUNCIL AGENDA STATEMENT Item:-2 Meeting Date: 3/16 / 9 9 ITEM TITLE: /' Resolution )9 J'iJ':.> Adopting Council Policy requiring the disclosure of certain ownership or financial interests, payments, or campaign contributions prior to discretionary action by the City Council, Planning Commission and all other official bodies of the City SUBMITTED BY: City AttorneyrV (4/5ths Vote: Yes No-X) City Council recently voted to amend Chula Vista Municipal Code section 2.52.040, redefining the term "contribution." During that discussion reference was made to the "City of Chula Vista Disclosure Statement" form. This is a form the applicant or contractor for a project completes prior to any discretionary action being taken on their project. This office was requested to review the form and return to Council with a revised form incorporating the recent changes to the City's definition of campaign contribution. RECOMMENDATION: That the City Council adopt the proposed policy requiring use of the revised "City ofChula Vista Disclosure Statement." BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: For approximately the past 7-8 years the City has required the filing of a disclosure statement by applicants and contractors prior to any discretionary action being taken by the Council, Planning Commission, boards and commissions of the City. At the January] 2, 1999, meeting, the Council approved an amendment to the campaign contribution ordinance allowing a Councilmember to raise funds to retire a legal debt incurred pursuing an action to enforce a perceived right or interest guaranteed under either the Election Code or the Municipal Code. During the discussion prior to adoption of that amendment, Council raised the issue of reporting requirements and disclosure as it would relate to the additional funds raised. Council requested this office revise the disclosure form currently in use to include a provision to require disclosure of funds raised pursuant to this amendment. 7~/ While reviewing the disclosure form it was determined additional changes were necessary to ensure it reflected the current state of the law. Those changes have also been incorporated into the revised form. It was also determined that there was no legislative authority under which this policy was being implemented. In an effort to address that, the attached Council policy is presented for consideration. The proposed policy provides authority and guidelines for the use of this disclosure form. FISCAL IMPACT: None to the City. Attachment: 1. Council Policy 2. Revised City ofChula Vista Disclosure Statement 7-;L RESOLUTION NO. /9.J?S RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APODTING PROPOSED COUNCIL POLICY ON USE OF CITY OF CHULA VISTA DISCLOSURE FORM WHEREAS, at the January 12, 1999, Council meeting, Council requested the Disclosure Form currently used be reevaluated and amended based on recent changes to the definition of contribution in Municipal Code section 2.52.040; and WHEREAS, during review of the disclosure form it was determined there was no Council policy adopting its use; and WHEREAS, the City Council desires to institute a policy requiring the completion of the Chula Vista Disclosure Statement form prior to the taking of any discretionary action by the Council, Planning Commission, or other official body of the City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby adopt the proposed Council policy, as set forth in Attachment I, and the Disclosure Form, as set forth in Attachment 2, attached hereto and incorporated herein by reference. Presented Approved as to form by H: \home\attomey\disclosurc.rcso 7~} COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: DISCLOSURE STATEMENT POLICY NUMBER EFFECTIVE DATE PAGE ADOPTED BY: Resolution No. 101-01 3/9/99 I DATED: 3/9/99 1 OF 2 BACKGROUND The City takes many discretionary actions that impact the applicants or contractors and the citizens of Chula Vista as a whole. Due to the political nature of many decisions, it is important to avoid both the appearance of and any actual impropriety in the approval or denial of these discretionary actions. One area of concern is the failure to disclose ownership or financial interests, payments or campaign contributions accepted by members of the City staff, board or commission member, or elected officials who may be involved in the decision making process. PURPOSE The purpose of this policy is to establish a standard approach to determine if there is an appearance of or an actual impropriety presented by the involvement of an elected or appointed official of the City with the applicant or contractor on a particular project pending before the City. This policy will provide the applicant or contractor the opportunity to disclose their activities that may create a conflict for the City official. POLICY Prior to any action upon matters which will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments or campaign contributions must be filed by the applicant or contractor on the project. The Council is primarily concerned that all potential conflicts for all projects coming before the City for discretionary approval are discovered. To accomplish this goal, this policy is being implemented. IMPLEMENTING PROCEDURES The City Manager will implement an administrative procedure ensuring that all departments provide the attached "City of Chula Vista Disclosure Form" to all project applicants/contractors who have projects pending before the City which will require a discretionary action by the City Council, Planning Commission, or other official body of the City. 7-'1 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: DISCLOSURE STATEMENT POLICY NUMBER EFFECTIVE DATE PAGE 2 OF 2 ADOPTED BY: Resolution No. 101-01 3/9/99 I DATED: 3/9/99 The City Manager will work with the department heads to provided the Council, Planning Commission or other official body of the City with the completed disclosure form with sufficient time for the decision-maker to determine if a conflict exists. Council shall be notified if a contractor or applicant fails or refuse to complete the Disclosure Statement form. Failure to complete the disclosure form may result in a delay in processing the project/application. The City Manager will work with the City Attorney to review and update the Chula Vista Disclosure Statement form annually and see that all departments are using the most current version of the form. Failure to complete the disclosure form may result in a delay in processing the project/application. The City Manager will work with the City Attorney to review and update the Chula Vista Disclosure Statement form annually and see that all departments are using the most current version of the form. '/ C' /~ J City of Chula Vista Disclosure Statement Pursuant to Council Policy , prior to any action upon matters which will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. 2. If any person' identified pursuant to (I) above is a corporation or partnership, list the names of all individuals with a $1000 investment in the business (corporation/partnership) entity. 3. If any person* identified pursuant to (1) above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. 4. Have you conducted more than $250 worth of non-City related business with any member of the city staff, boards, commissions, committees, or Council with the past twelve months? Yes _ No _ If yes, please indicate person(s): 5. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter? 6. Have you and/or your officers or agents, provided a Councilmember $250 or more within the past twelve months (campaign contribution, assistance with retiring a legal debt, loan, income, gift, etc.)? Yes No _ [fyes, state which Councilmember(s): Date: Signature of Contractor/Applicant Print or type name of Contractor/Applicant * Person is defined as: any individual, firm, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, this any other county, city, municipality, district, or other political subdivision, or any other group or combination acting as a unit. Created 2/99 7~~ COUNCIL AGENDA STATEMENT Item ~ Meeting Date 3/16/99 /'U?'6 ITEM TITLE: /7- Resolution: Amending the FY 1998/99 Budget Adding 2.5 Positions and $111,915 to the Human Resources Department and $12,350 to the City Attorney's Department, Based on Unanticipated Reimbursement Revenue From the Transit, Redevelopment Agency, and Storm Drain Funds. f}. Resolution: /~frlng the FY 1998/99 Public Facilities Development Impact Fee Budget-Civic Center Component to Add $18,800 for Equipment and Furnishings for the New Staff. SUBMITTED BY: Special Projects Manager M'J./ Human Resources Direct~ REVIEWED BY: City Manage~,.. ~ (4/5ths Vote: Yes-X..No-> The City's Risk Management Division handles liability, safety, workers' compensation and employee benefit issues. As discussed in this report, the division has been understaffed over an extended period oftime. At current staffing levels, the division is unable to provide the level of staff review necessary to minimize the City's risk exposure on a myriad ofliability, insurance and safety issues or to provide adequate customer service on workers' compensation and benefit issues. It is important to note that all of the proposed budget increases for the current year (and for future years) are expected to be offset by projected revenue enhancements, increased General Fund reimbursements, and budget adjustments. RECOMMENDATIONS: It is recommended that Council: A. Appropriate $111,915 to the Human Resources Department's Risk Management Division's FY 1998/99 budget and $12,350 to the City Attorney's Litigation Unit FY 1998/99 budget. These funds will be appropriated from unanticipated reimbursement revenue for work done by the Risk Management Division and the Litigation Unit on behalf of the Transit Fund ($94,300), the Redevelopment Agency-Otay Valley Road Project Area Fund ($37,960) and the Storm Drain Fund ($19,530). These unanticipated reimbursements total $151,790. The proposed budget increases include: . the reclassification of two Risk Analysts to Senior Risk Analyst in the Risk Management Division, to better reflect the level of responsibility assigned to the positions; (5- / Page _, Item_ Meeting Date 3/16/99 . the addition of a Risk Analyst to the Liability Section in the Risk Management Division; . the temporary addition of hourly wages and the temporary expansion of consultant contracts to enable the Risk Management Division's Safety Section to reduce its backlog of high priority issues; . the addition of $30,000 to the Risk Management Division's Safety Section's supplies budget to correct immediate safety concerns; . the addition of a Senior Risk Analyst to the Risk Management Division's Benefits Section; . the addition of a half-time AOA-III to better handle the Risk Management Division's clerical needs; and . the addition of$12,350 to the City Attorney's Litigation Unit for additional supplies and services. B. Appropriate $18,800 from the Civic Center Expansion Component of the Public Facilities Development Fee Budget for start-up office furnishings and equipment for the new staff. The recommendations represent an increase of$124,265 for the current budget year (excluding $18,800 from the Public Facilities Development Impact Fee Fund). As discussed in detail in this report, the unanticipated reimbursement revenue projected for FY 1998/99 totals $151,790.' An additional $165,610 in unbudgeted reimbursements to the General Fund from the Redevelopment Agency have been identified. These potential reimbursements are for work performed on behalf of the Redevelopment Agency by Risk Management and Litigation Unit staff. These potential reimbursements will NOT be counted until it is determined that sufficient funds exist in the appropriate project area accounts or that it is desirable to book a loan. 2 For a full budget year, the net impact of the proposed changes on the General Fund will be $232,750. For FY 1999/00 additional General Fund reimbursements/revenue are projected to total $242,485. C. For Transit, Sewer and Storm Drain activities, establish a 5% minimum share in the cost for the citywide liability insurance. I The report also projects that Sewer Service fund reimbursements may have been overstated by $18,450. This would reduce the net increase in unanticipated reimbursement revenue to $133,340. 2 The $37,960 in Redevelopment Agency reimbursements which are counted are against the Otay Valley Road Project Area, which does have sufficient fund balances to repay the General Fund. Y'~~ 2 Page _, Item_ Meeting Date 3/16/99 Currently, special funds such as Transit, Sewer or Storm Drain reimburse the General Fund for a portion of the citywide liability insurance premium on the basis of their proportionate share of claims. If in a given year a non-General Fund activity has no claims, they pay no portion of the insurance premium. This logic implies that insurance has a value only if a claim arises (an interesting notion if applied to life or automobile insurance). Clearly, insurance has a value independent of claim activity. The proposed 5% minimum share is based on an analysis of3-years of claim activity. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable DISCUSSION: Backe:round. Ten years ago, the City's Risk Management Division had four staff members: . Risk Manager . Risk Analyst (Public Liability and Damage Recovery) . Administrative Office Specialist (HealthlWelfare) . Benefits Technician (Workers' Compensation and Health/Welfare). Figure 1. Current Organization Chart 1.0 Secretary 1.0 Risk Manager Safety Section Liability Section Benefits Section . 1.0 Risk Analyst . 1.0 Risk Analyst . 1.0AOA . 1.0 Benefits Tech Over this period the workload of the division increased, as did the scope and complexity of its work. However, the resources ofthe division were reduced during most of this period, to help offset citywide revenue losses. In October 1993 the City's Risk Manager resigned to take an out-of-state position. A new Risk Manager was hired in January 1994. Overwhelmed by the responsibilities assigned to the division and the limited staff resources, the new Risk Manager resigned seven months later (August 1994). Given the City's revenue constraints, the Risk Manager position remained vacant for one year. During this period, the Assistant Director of Human Resources, with the part-time assistance of a staff member from the City Manager's Office, assumed responsibility for the division. In September 1995 the current Risk Manager was appointed. :1'--5 3 Page _' Item_ Meeting Date 3/16/99 In 1997 the AOA-III (Benefits Technician) transferred to the Public Works Department. In another budgetary move, the vacated position was frozen. During the freeze period, the Risk Analyst-Liability assumed much ofthe benefit technician's workload. Correspondingly, various responsibilities of the liability section, such as recovery for damages to City property, suffered from a decrease in the available staff time. The Benefits Technician position was not filled until December 1998. In October 1998 the position of Risk Analyst-Safety was permanently added and the Division's Safety Section was officially formed. Until this time, the City had operated with only a cursory safety program, resulting in the current backlog of high-priority safety issues and programs needing to be implemented. Since the late 1980s, the division has operated in a proverbial Alice in Wonderland milieu, running faster to stop falling further behind. Survey of Comnarison Cities To help assess the division's current staffing levels, a telephone survey was conducted of the 8 California cities with populations between 150,000 and 200,000. Inter-city comparisons have significant limitations--the most significant being that there is generally no measure of how well the comparison jurisdictions are performing the surveyed functions. These types of comparisons can, however, indicate gross staffing anomalies. As will be subsequently discussed, the majority of the comparison cities did not assign the responsibility for employee benefit programs (excluding workers compensation) to their risk management division. Thus, the survey comparison initially focused on liability, safety and workers compensation activities. In these areas, staffing among the comparison cities differed widely, ranging from .33 non-clerical staff per 100 full-time employees to .86 staff/per 100 employees? Chula Vista's current ratio is .47. The recommended changes will increase the City's ratio to .60. In general, the staffing variations among the comparison cities reflect: . whether the city contracts for the administration of programs such as workers' compensation or administers these programs in-house; 5 of the 8 surveyed cities administer workers' compensation in-house; Chula Vista contracts with a third party administrator 3 This measure is related to workload in the areas of safety, workers' compensation (and benefits). It is only indirectly related to public liability workload issues. 2r ~ "I 4 Page _, Item_ Meeting Date 3/16/99 . the content of the various risk management programs; Under the City of Fremont's safety program, for example, individual departments are responsible for providing safety training; comparatively, Chula Vista's Risk Management Division conducts training itself. As such, Fremont's Risk Management Division staffing understates the actual staff resources being devoted in this area. and, . where program responsibility is located organizationally. In Glendale and San Bernadino, the responsibility for recovering damages to city property is assigned to the Finance department; in Chula Vista, the responsibility is assigned to the Risk Management's Liability Section. It is important to emphasize that prior to the addition of the Risk Analyst -Safety in 1998, and accounting for frozen positions between 1993 and 1998, the City's actual staffing ratio over the last five years has ranged from .25 to .38 per 100 employees. This low ratio helped to create the crisis-to-crisis atmosphere under which the Division has operated and the Division's current work backlog. *************** The following sections of the report detail the recommended budget adjustments and the corresponding revenue enhancements: For RISK MANAGEMENT: . Liability Section . Safety Section . Benefits Section . Clerical Section For CITY ATTORNEY: . Litigation Unit f5 ~ 5'" 5 Page _, Item_ Meeting Date 3/16/99 Risk Management Liability Section This section is principally responsible for overseeing liability claims and insurance; assuring that City contractors have and maintain required insurance coverage; and recovering damages to City property. RECOMMENDATIONS: A. STAFFING FY 98/99 FY99/00 "E" SteD AI. Reclassify the current Risk Analyst position to Senior Risk Analyst. (1/29/99 Effective Date) $ 2,090 $ 6,280 $ 8,030 The Senior Risk Analyst would be equivalent in pay to the Senior Personnel Analyst; the upgrade would better reflect the level of responsibility assigned to the position. A2. Add a Risk Analyst position $ 6,270 $ 51,810 $ 59,790 (mid-May start date) It is critical that additional staff time be dedicated to such activities as reviewing and monitoring contractor insurance. The additional staff time will also enable the Section to increase revenue collections (+$35,000) and to likely reduce external contracting for claims investigation ($-10,000). The addition of this position will increase the City's ratio of non-clerical staff per 100 employees to .60. (The comparison cities ranged from .33 to .86). The Risk Analyst position should be reclassified from Mid-Management to Unclassified. B. OTHER OPERATING BUDGET CHANGES BI. Start-up furnishings and equipment $ 7,400 $ o $ o These costs will be borne by the Public Facilities Development Impact Fee (PFDIF) program-Civic Center Expansion Component. The projection includes office furnishings and equipment, and an additional printer to be shared by Division staff. B2. Reduce the budgeted amount for contract claims investigation $ o ($ 10,000) ($10,000) It's foreseen that the additional staff will enable a decrease in contract costs. ............................................................................. c. NET IMPACT (STAFFING + OTHER) $ 15,760 $48,090 $57,820 For FY 1998/99, the net General Fund impact is $8,360; the remaining $7,400 will be covered by PFDIF funds. fj~? 6 Page _, Item_ Meeting Date 3/16/99 Liability Section (Continued) D. COST OFFSETS FY 98/99 FY99/00 Dl. Increased collections $ 0 $ 35,000 It's projected that the additional staff resources will increase annual collections by $20,000 for recovering damages to City property and $15,000 for recovering losses arising from injuries to City staff caused by third parties. For example, there is a gap between City losses established by Workers Compensation guidelines and the actual losses suffered by the City. The additional staff will enable the City to press claims for full restitution. D2. Establish minimum insurance premium shares for non-General Fund activities $ 12,020 $12,020 At year's end, activities such as Sewer and Transit reimburse the General Fund for a portion of the citywide insurance premium. The reimbursement is based upon their proportionate share of claims. For example, in 1998/99 Transit represented 14% of liability claims and hence reimbursed 14% of the premium; in FY 1995/96, however, Transit claims only represented 1.8% of total claims and hence their share ofthe premium was only 1.8%. This methodology implies that the insurance has no value unless a claim arises. (Under the same logic, homeowners would only pay their fire insurance premium if they had a fire during the year!) Clearly, insurance has a value regardless of claim activity. It is suggested that all special funds be charged a minimum premium share of5% to reflect this value. For FY 1998/99, the Storm Drain Fund's share ofthe insurance premium would be projected at the minimum, corresponding to $12,020. During the coming year, it is recommended that Risk Management staff review alternative methodologies for charging minimum premium shares for the City's liability insurance, such as relative risk exposure. It's also suggested that staff review the desirability of establishing minimum premium shares for other City insurance premiums. D3. Reimbursements to the General Fund for work performed by the City Attorney's Litigation Unit $120,540 $ 90,405 These include claims related to Transit ($ 75,070), Storm Drain/Sewer ($ 7,510) and Redevelopment ($37,960). The totals represent costs incurred through January 1998. It's expected that General Fund reimbursements from the Litigation Section would fluctuate significantly from year to year. Since this represents the first data year, future reimbursements have been projected at 75% of the year to date FY 1998/99 levels. ~// 7 Page _, Item_ Meeting Date 3/16/99 Liability Section (Continued) D. COST OFFSETS (Continued) levels. It's important to note that an additional $61,330 in RDA reimbursements have been identified but are NOT counted, pending a year-end assessment of fund availability. FY 98/99 FY99/00 D4. Include projections for Transit and RDA reimbursements for premiums, claim expenses & Risk Management staff time in the annual revenue forecasts. $ 780 $105,060 Reimbursements should be projected using a rolling, 3-year average. For the FY 1998/99 budget no reimbursement revenues were established for Transit (3-year average = $15,140 in premiums and $4,090 in staff costs = $19,230). Similarly, no estimates were established for RDA (3-year average = $14,420 in premiums, $73,880 in claims expenses and $15,980 in staff costs = $104,280). Although the RDA reimbursements have been booked in the past, they have not been counted in this study, pending a year-end assessment of fund availability. The projected increase in transit reimbursements (+$19,230) will possibly be offset by a projected decrease in reimbursements from the Sewer Services Fund (-$18,450), based on Sewer's 3-year average.4 Thus, the net increase in FY 1998/99 reimbursements is projected to be $780, excluding the $104,380 in potential RDA reimbursements. D. COST OFFSETS D5. Reimburse the General Fund for staff time associated with damage recovery benefiting Open Space and other Special Districts. $ ? $Unknown Staff charges should be subtracted from the recovered amount, prior to the transfer of funds to the Special District. Staff charges cannot be greater than the amount recovered. To facilitate reimbursements to the General Fund, the Liability Section's computer network should be tied-into the citywide GIS, so that RDAs and other special districts are easily identified. The City's MIS department needs to work with the Senior Risk Analyst to ensure that this is accomplished in the near future. 4 It appears that budgeted Sewer reimbursements were based on FY 1997/98 experience, which exceeded the 3- year average by $18,450. 6r~ 8 Page _, Item_ Meeting Date 3/16/99 Liability Section (Continued) FY 98/99 FY99/00 D6. Additional reimbursements generated by new Risk Management staff $ o $Unknown The current formula for charging-back the Division's staff expenses to non-General Fund activities is based on the average number of hours per type of claim. These averages should be re-examined after the new risk analyst is carrying a full workload. INCREASE IN PROJECTED GF REIMBURSEMENTS: $133,340 $242,485 *************** Risk Management Safety Section Prior to 1998, the City had only a bare bones safety program. As such, when the Risk Analyst-Safety position was permanently created, there was (and remains) a backlog of high priority projects dealing with policy development, training, hazard and ergonomic assessment. Backlogged project areas include: . Workplace security and violence in the workplace . Contractor safety . Ergonomic evaluations In a recent survey, City departments listed ergonomic assessment/training as their highest risk management priority . Respirator protection . Electrical safety . Site specific hazardous materials plans The following staffing recommendations are made with the goal of completing the high priority safety projects expeditiously, while balancing the need for cost effectiveness. g-~ r 9 Page _, Item_ Meeting Date 3/16/99 Safety Section (Continued) RECOMMENDATIONS A. STAFFING FY 98/99 FY99/00 "E" Steo AI. Increase the contractor budget for policy development training and hazard assessment. $ 38,925 $ 0 $ The use of contractors will enable priority work to get underway immediately. The funds will provide for approximately 15 training classes, 7 hazard assessments and the development of3-5 safety policies through the remainder ofFY 1998/99. A2. Add hourly wages on a temporary basis (mid-May start date) @ the level of Risk Analyst (Unclassified) $ 6,270 $ 51,810 N/A It is estimated that the backlog of high orioritv safety-related projects can be completed within 24 months. As such, it's suggested that temporary hourly wages (Risk Analyst level) be planned through December 2000. There will, of course, be additional safety programs to develop and implement after that date--safety is an area which can always be improved. However, after the Section's backlog of projects is reduced, there may be other, higher priority uses for these funds elsewhere in the City. Beginning in January 2001 it is reasonable to anticipate that the Section would be able to handle its normal workload without the need for the temporary position. The addition of a paid intern should be considered at that time. This is believed to be the most cost-effective option for reducing the backlog of high priority projects. Over the 18-month period July I, 1999 through December, 2000, costs for the temporary position would approximate $66,465 (net of related budget reductions detailed in Part B below). Comparatively, contractor costs for FY 1999/00 (12 months) are projected @ $80,775. Most importantly, it's believed that more work would be accomplished by adding the temporary position. HOWEVER, this option would not necessarily be more cost effective if the need for the temporary position was not seriously reviewed after eighteen months. A4. Reclassify the current Risk Analyst position to Senior Risk Analyst. (1129/99 Effective Date) $ 1,900 $ 6,580 $ 8,030 The upgrade would better reflect the level of responsibility assigned to the position. g~JtJ 10 Page _, Item_ Meeting Date 3/16/99 Safety Section (Continued) FY 98/99 FY99/00 "E" Step B. OTHER OPERATING BUDGET CHANGES HI. Start-up equipment (for the temporary position /Intern) $ 5,700 $ 0 These costs will be borne by the Public Facilities Development Impact Fee (PFDIF) program-Civic Center Expansion Component. The costs include office furnishings and equipment (a printer to be shared by Division staffis included in the Liability Section equipment). B2. Add funds for ergonomic/safety upgrades $ 25,000 $ 25,000 $ TBD These funds are needed to correct problems discovered in ergonomic/safety assessments conducted during the fiscal year. The specific equipment upgrades are detailed below. It is anticipated that annual needs will decline as more assessments are completed over time. Ergonomic/Safety Equipment Needs FY 98/99 Ergonomic Equipment! Police: 2 Chairs Police: Work Station Upgrade Parks: 6 Chairs Fire: 6 Chairs HR: 4 Chairs HR: Work Station Upgrade Stores: 2 Chairs Projected ergonomics needs thru 6/30/99: Safety Equipment PWO Safety Jackets (93 @ $75/each) Projected safety needs thru 6/30/99: TOTAL: $ 1,000 $ 500 $ 3,000 $ 3,000 $ 2,000 $ 500 $ 1,000 $ 5,000 $ 6,795 $ 2.025 $25,000 FY 99/00 $ 2,000 $ 5,000 $ 2,000 $ 1,000 $15.000 $25,000 Personal Protective Equipment Safety Equipment (e.g. tools) Safety Training Software Safety Training Supplies Ergonomic Equipment TOTAL: NOTE: Equipment/furnishings for positions added in various departments since 1989 may be charged to the PFDIF, if certain conditions are met. The Senior Risk Analyst should work with the Senior Accountant-PFDIF to determine if any of the current needs qualify. !)~)! II Page _, Item_ Meeting Date 3/16/99 Safety Section (Continued) FY 98/99 FY99/00 "E" Step B3. Add funds for the Safety Committee $ 5,000 $ 5,000 These funds will enable the citywide Safety Committee to solve specific safety problems during the year. B4. Temporary Budget Adjustments $ 0($ 7,500) During the period when the temporary risk analyst position is available, it is projected that $5,000 can be cut from the Section's budget for specialized services (5202) and $2,500 from training (5224). ............................................................................. C. NET IMPACT (STAFFING + OTHER) $ 82,795 $80,890 $ TBD For FY 1998/99, the net General Fund impact is projected to be $77,095; the remaining $5,700 (plus any appropriate equipment upgrades) will be covered by PFDIF funds. D. COST OFFSETS Clearly, one ofthe long-term goals of any safety program is to reduce injuries. While it is anticipated that the City's ergonomics program and other safety training programs will reduce days away from work and injury claims (50% of workers' compensation claims are attributable to ergonomics and repetitive motion injuries), these are long term goals and, as such, no immediate cost offsets are projected. *************** Risk Management Benefits Section Day-to-day responsibilities ofthis section include processing flex plan and enrichment reimbursements, processing employee health and welfare program enrollments, and maintaining workers compensation records. The section is also responsible for developing and implementing policies dealing with modified/light duty work programs, COBRA, FMLA, L TD, as well as for providing citywide training regarding all benefits and workers compensation issues. In the initial survey of comparison cities, the cited staffing ratios did not include staff responsible for employee benefits. Only one of the eight surveyed cities assigned the responsibility for administering health/welfare benefits to the Risk Management Division, as is currently done in Chula Vista. In most instances benefit-related issues were generally 6"/~ 12 Page _, Item_ Meeting Date 3/16/99 Benefits Section (Continued) assigned to another division within the Human Resources department. In the comparison cities, the average ratio of non-clerical, benefit staff per 100 employees ranged from .13 to .41; Chula Vista's current ratio is .15. Significantly, the two cities with ratios similar to Chula Vista did NOT administer a flex plan. The majority of cities did have a separate managerial position assigned to their benefits section. The proposed staffing change will increase the City's ratio to .28. RECOMMENDATIONS A. STAFFING FY 98/99 FY99/00 "E" Step At. Add a Senior Risk Analyst position (Mid-May) $ 7,280 $ 60,230 $ 69,400 The mid-manager position would be responsible for policy and program development, citywide training and customer service issues. As has been discussed, it is difficult to emphasize the importance of customer service to City employees when, in the past, the City has not been staffed to provide quality service to them as customers. The addition would bring the City's staffing ratio to .28, at the low end of cities with flex plans. A programmatic goal for the coming budget year should be a review of the City's current workers' compensation program administrator, in conjunction with the employee associations. B. OTHER OPERATING BUDGET CHANGES Bt. Start-up equipment $ 5,700 $ o These costs will be borne by the Public Facilities Development Impact Fee (PFDIF) program---Civic Center Expansion Component. The costs include office furnishings and equipment (a printer to be shared by Division staff is included in the Liability Section equipment). ......................................................................1 C. NET IMPACT (STAFFING + OTHER) $ 12,980 $ 60,230 $ 69,400 For FY 1998/99, the net General Fund impact is projected to be $7,280; the remaining $5,700 will be covered by PFDIF funds. %--/3 13 Page _, Item_ Meeting Date 3/16/99 Risk Management Clerical Assistance Although risk management is a paper intensive function, the division did not have a permanent secretarial position assigned (part time) until 1994. Currently, it is difficult to assess the Division's long-term clerical support needs. As such, the following recommendations are considered short-term solutions. RECOMMENDATIONS A. STAFFING FY 98/99 FY99/00 "E" Step AI. Add a 50% AOA-II position $ 19,180 $ 31,190 $TBD The Human Resources department currently has a 50% AOA-II position assigned. Upgrading this position to full time (with benefits) will provide needed confidential, clerical support. Note: The FY 98/99 sum represents the amount needed to cover full- time hours for this year. The new City Clerk is expected to undertake a records management study of the Risk Management Division during the current year. This study will provide the basis for a longer-term assessment of the Division's clerical support needs. It's not anticipated that the City Clerk study will affect the need for the additional half-time support. B. OTHER OPERATING BUDGET CHANGES B1. Start-up equipment $ o The current AOA-II position has a furnished workspace. Longer-term furnishing/ equipment costs would be borne by the Public Facilities Development Impact Fee (PFDIF) program-Civic Center Expansion Component and/or the Records Management System Component. ....................................................................... (5/ )1' 14 City Attorney Litigation Unit Page , Item - - Meeting Date 3/16/99 As detailed in the Liability Section, the Litigation Unit will produce a significant level of General Fund reimbursements this year. These reimbursements have not been included in the City's revenue projection for FY 1998/99. A meeting with staff from the City Manager's Office, City Attorney's Office and Risk Management Division will be held in the near future to establish a process for ensuring that the aforementioned reimbursements are made to the General Fund. RECOMMENDATIONS B. OPERATING BUDGET CHANGES BI. Increase the Unit's budget for supplies/services FY 98/99 FY 99/00 $ 12,350 $ 12,350 This is the Unit's first full year of operation. The Unit's supplies and services budget has been strained by the needs of current cases, particularly those that have produced the General Fund reimbursements. The table below breaks down the needed funds by budget category. Table. Increased Funds Needed bv Litigation Unit 5101 - Hourly Wages --Temporary for 40 hours month @ $25/hour 5102 - Overtime 5201 - Professional Services -- Messenger Services ($500) -- WESTLA W Research ($500) 5212 - Printing and Binding -- Contract copier service ($750) -- Internal copier costs ($2,000) 5225 - Transportation Allowance -- Parking fees for court 5301 - Office Supplies 5252 - Telephone ************************** fjr)~ $ 5,000 $ 1,000 $ 1,000 $ 2,750 $ 300 $ 1,800 $ 500 $12,350 15 Page _, Item_ Meeting Date 3/16/99 Summary The proposed organization chart for Risk Management is shown in Figure 2. Figure 2. Proposed Organization Chart 1.0 Secretary .5 ADA-II 1.0 Risk Manager Safety Section Liability Section Benefits Section . 1.0 Sr Risk . 1.0 Sr Risk . 1.0 Sr Risk Analyst Analyst Analyst . 1.0 Risk Analyst . 1.0 Risk Analyst . 1.0 ADA (Temp )/Intem 1 . 1.0 Benefits Tech 1 Temporary position projected through December, 2000; paid full-time mtem starting January, 2001 anticipated. Performance Measures Later this fiscal year, staff from the Special Project's Manager section will be working with the Risk Management Division to develop various performance measures. These measures will correspond, in type, to the measures developed by the lCMA's Center for Performance Measurement for other city-related services. FISCAL IMP ACT The total FY 1998/99 cost of the proposed changes, including additional funds recommended for the City Attorney Litigation Unit, is $143,065. Of this total, a minimum of$18,800 would be allocated from the PFDIF-Civic Center Component. The unanticipated reimbursement revenue projected for FY 1998/99 is $151,790. (This does not include an additional $265,550 in potential, unanticipated RDA reimbursements to the General Fund.) FOr FY 1999/00 total costs are projected at $232,750. Enhanced General Fund reimbursements/revenue are projected to be $243,015. Cost in the third year, FY 2000/01, are expected to decrease as a result of (1) the projected replacement of the temporary position in the Safety Section with a paid intern and (2) reduced equipment upgrade costs as ergonomic/safety assessments are completed citywide. b'/fr 16 RESOLUTION NO. /9J'tt RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 1998/99 BUDGET ADDING 2.5 POSITIONS AND $111,915 TO THE HUMAN RESOURCES DEPARTMENT AND $12,350 TO THE CITY ATTORNEY'S DEPARTMENT, BASED ON UNANTICIPATED REIMBURSEMENT REVENUE FROM THE TRANSIT, REDEVELOPMENT AGENCY, AND STORM DRAIN FUNDS WHEREAS, liability, safety, issues; and the city's Risk Management workers' compensation and Division employee handles benefit WHEREAS, the division has been understaffed over an extended period of time and at current staffing levels, the division in unable to provide the level of staff review necessary to minimize the City's risk exposure on a myriad of liability, insurance and safety issues or to provide adequate customer service on workers' compensation and benefit issues; and WHEREAS, this is the first full year of operation for the Litigation unit of the City Attorney's office and the supplies and services budget has been strained by the needs of current cases, particularly those that have produced the General Fund reimbursements; and WHEREAS, all of the proposed budget increases for the current year (and for future years) are expected to be offset by projected revenue enhancements, increased General Fund reimbursements, and budget adjustments. City of Resources NOW, THEREFORE, BE IT RESOLVED the city Chula Vista does hereby amend the FY Department budget to include: Council of the 1998/99 Human . the reclassification of two Risk Analysts to Senior Risk Analyst, to better reflect the level of responsibility assigned to the positions; . the addition of a Risk Analyst to the Liability Section in the Risk Management Division; . the temporarv addition of hourly wages and the temporary expansion of consultant contracts to enable the Safety section to reduce its backlog of high priority issues; . the addition of supplies budget concerns; $30,000 to the Safety section's to correct immediate safety 1 6;J~/ . the addition of a Senior Risk Analyst to the Risk Management Division's Benefits Section; . the addition of a half-time AOA-III to better handle the division's clerical needs; and BE IT FURTHER RESOLVED that the city Council does hereby appropriate $111,915 to the Human Resources Department's Risk Management Division's FY 1998/99 budget and $12,350 to the City Attorney's Litigation unit FY 1998/99 budget for additional supplies and services. These funds will be appropriated from unanticipated reimbursement revenue for work done by the Risk Management Division and the Litigation unit on behalf of the Transit Fund ($94,300), the Redevelopment Agency-Otay Valley Road Project Area Fund ($37,960) and the Storm Drain Fund ($19,530). Presented by Approved as to form by city y Marty Chase, Special Projects Manager H:\home\attorney\reso\reclass.rsk 2 [5j}/J RESOLUTION NO. )9J~? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 1998/99 PUBLIC FACILITIES DEVELOPMENT IMPACT FEE BUDGET-CIVIC CENTER COMPONENT TO ADD $18,800 FOR EQUIPMENT AND FURNISHINGS FOR THE NEW STAFF WHEREAS, the civic Center Expansion Component of the Public Facilities Development Impact Fee Program is responsible for the furnishing and equipment needs of new staff; and WHEREAS, additional staff is being added to the Human Resources Department; and WHEREAS, it is recommended that funds in the amount of $18,800 be appropriated from the Civic Center Expansion Component of the Public Facilities Development Impact Fee Budget for start-up office furnishings and equipment. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby amend the FY 1998/99 Public Facilities Development Impact Fee Budget-Civic Component to add $18,800 for equipment and furnishings for new staff in the Human Resources Department. Presented by Approved as to form by Marty Chase, Special Projects Manager /~~' JOhl M. Kaheny, c~ttorney / 613--/ COUNCIL AGENDA STATEMENT Item Meeting Date 3/16/99 '1 ITEM TITLE: Resolution If J(f~ Waiving the consultant selection process as impractical and Approving agreements with the bond counsel firm of Brown. Diven. Hessell & Brewer LLP. the investment banking firm of Stone & Youngberg LLC. and the financial advisory firm of Fieldman. Rolapp & Associates to continue to provide specialized professional services related to infrastructure financing districts within the Otay Ranch territory. and authorizing the Mayor to execute said agreements SUBMITTED BY: Director of Finance v{J..L / Director of Public Works r!f.. C;'y M.".ge'"Dl?-~ ~ REVIEWED BY: (4/5ths Vote: Yes _No-----X-l SUMMARY: A primary source of financing for development related infrastructure. such as roads. sidewalks, drainage, etc., has been borrowing through the use of various types of financing districts. The complicated legal requirements and financial strategies for the formation of such districts and completion of the long term borrowing through bond issuance have necessitated the use of a team of consultants, including as a core, Bond Counsel, Underwriters, and Financial Advisory firms. Staff is confident based on the previous selection process and experience in working with these firms on two districts currently underway that the current team of consultants is as good or better than any others that may be available. In order to take advantage of the knowledge of the development plans throughout the Otay Ranch territory that these individuals have accumulated while working on the two recently established districts. and to avoid the staff time and expense involved with multiple selection processes, staff is recommending that the City contract with them for all future financing districts within the Otay Ranch territory. RECOMMENDATION: That Council adopt the Resolution waiving the consultant selection process as impractical, approving agreements with the bond counsel firm of Brown, Diven, Hessell & Brewer LLP. the investment banking firm of Stone & Youngberg LLC, and the financial advisory firm of Fieldman, Rolapp & Associates to continue to provide specialized professional services related to infrastructure financing districts within the Otay Ranch territory, and authorizing the Mayor to execute said agreements. c;/ / Page 2, Item Meeting Date 3/1 6/99 DISCUSSION: General The rapid development in the eastern portion of the City will require vast amounts of infrastructure in the form of roads, sidewalks, drainage, etc., costing hundreds of millions of dollars. A primary source of funding for these infrastructure needs has been financing districts, both traditional assessment districts, and more recently, Mello Roos districts. The complicated legal requirements and financial strategies for the formation of such districts and completion of the long term borrowing through bond issuance have necessitated the use of a team of consultants. The core of that team has included Bond Counsel, Underwriters, and Financial Advisory firms. In preparation for the two districts currently in process, staff undertook comprehensive selection processes within the last year to select both the underwriting and the financial advisory firms. The City has utilized the services of the bond counsel firm of Brown, Diven, Hessell & Brewer LLP for most, if not all, of the City's infrastructure financing districts spanning a period of many years. Staff is confident that repeating the selection processes would only result in the same conclusion and recommendation to contract with the same firms. In addition, extensive knowledge of the development and financing plans of the entire Otay Ranch Territory has been gained by the existing team of consultants while working on two districts currently in process. These consultants have also established a significant knowledge base regarding the major developers in the eastern portion of the City and at the same time have earned their confidence. For these reasons, staff is asking Council to waive the normal selection process as impractical. Bond Counsel As mentioned previously, the City has utilized the services of the bond counsel firm of Brown, Diven, Hessell & Brewer LLP for most, if not all, of the City's infrastructure financing districts spanning a period of many years. This firm is a San Diego based firm and one of the most highly regarded legal firms in the State specializing in land based financing. Their fee structure for the work on these districts is very competitive and is fully funded from the proceeds of the bond issues. During their work with the City, they have been instrumental in drafting the City's infrastructure financing policies. Because of their in depth knowledge of the City, the City's policies, and the City's developers, and their excellent working relationship with City staff built up over many years of service, approval of this contract establishing a long term relationship is strongly recommended. Underwriter The function of the underwriter is to generally to assist in developing an overall financing plan, structuring the debt issue in order to minimize interest cost, to 1/2 Page 3. Item Meeting Date 3/16/99 purchase the debt from the District and market the bonds to the investment community. Stone & Youngberg has underwritten more California assessment district bonds than all other firms combined, including a number of the outstanding City of Chula Vista issues such as the Auto Park and Eastlake Greens, Phases I and II. They are currently serving as the senior managing underwriter on Assessment District 97-2 and as the sole underwriter on Community Facility Financing District 97-3. Unlike most underwriting firms, Stone & Youngberg maintains an office in San Diego, making the lead bankers very accessible during the course of the transaction. Since they were appointed as the lead underwriter on Assessment District 97-2 and Community Facilities District 97-3, Stone & Youngberg has gained very valuable insight to all planned future development in Otay Ranch. In order to successfully market the bonds at the lowest interest rates possible, it is important that i.nvestors are comfortable with the overall development plans for the entire area. Because of the value of this current in depth knowledge, staff feels it would be impractical to conduct the normal consultant selection process and is recommending it be waived in favor of appointing Stone & Youngberg based on the prior consultant selection process conducted for Assessment District 97-2. Staff feels that although Stone & Youngberg proposed as a team with Merrill Lynch on Assessment District 97-2, it has been Stone & Youngberg that has been involved in the day to day decisions, and is recommending that only one underwriter be appointed. Financial Advisor The financial advisor's role is to assist in analyzing the financial feasibility of the project in order to insure that all City policy criteria are met, assist in structuring the debt issue, assist in negotiating a fair price for the bonds in order to minimize interest costs, and generally to coordinate the activities of the entire financing team. Fieldman, Rolapp & Associates was selected as the financial advisor for the City's first Community Facilities District (CFD 97-3) in June. 1998. Just as the other members of the financing team, over the last several months, they have gained valuable knowledge of the current and future development issues in the Otay Ranch territory. Fieldman, Rolapp & Associates is one of the most respected financial advisory firms in the State, especially in the area of land-based financing, and based on their current performance in CFD 97-3, will be a valuable part of the financing team for all future financing districts in the Otay Ranch territory. Contracts The contracts are presented as long-term arrangements with no termination dates, but terminating upon 30 days notice by either the City or the contractor. This is preferable since the City may go for periods of up to two or three years without the need for services. The contracts are substantially in the form of the City's standard two-party Agreement. The cost for the services will vary with the size of the debt c;~) Page 4, Item Meeting Date 3/16/99 issue. If all goes according to plans, and bonds are sold, all costs will be paid from the debt proceeds and eventually by property owners in the respective districts. In the unlikely event that for whatever reason bonds are not sold, all costs for services performed by bond counsel and the financial advisor will be paid for by the developer. FISCAL IMPACT: The fiscal impact upon debt issues of future infrastructure financing districts will vary depending on the size of the issue. Assuming an average bond issue size of $15 million, the approximate costs for these services would be: Bond Counsel...............................$ 45,000 Underwriter................................. $277,500 Financial Advisor..........................$ 45,000 These costs are comparable to the costs incurred on existing financing districts in the City and will have no direct impact on the General Fund or the City, but will be funded by developers and/or future property owners based on the relative benefits derived from the infrastructure being financed. 7~r RESOLUTION NO. ) 73Ft;,/' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL AND APPROVING AGREEMENTS WITH THE BOND COUNSEL FIRM OF BROWN, DIVEN, HESSELL & BREWER LLP, THE INVESTMENT BANKING FIRM OF STONE & YOUNGBERG LLC, AND THE FINANCIAL ADVISORY FIRM OF FIELDMAN, ROLAPP & ASSOCIATES TO CONTINUE TO PROVIDE SPECIALIZED PROFESSIONAL SERVICES RELATED TO INFRASTRUCTURE FINANCING DISTRICTS WITHIN THE OTAY RANCH TERRITORY, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS WHEREAS, a primary source of financing for development related infrastructure, such as roads, sidewalks, drainage, etc., has been borrowing through the use of various types of financing districts; and WHEREAS, the complicated legal requirements and financial strategies for the formation of such districts and completion of the long term borrowing through bond issuance have necessitated the use of a team of consultants, including as a core, Bond Counsel, Underwriters, and Financial Advisory firms; and WHEREAS, based on the previous selection process and experience in working with these firms on two districts currently underway, staff believes that the current team of consultants is as good or better than any others that may be available; and WHEREAS, in order to take advantage of the knowledge of the development plans throughout the Otay Ranch territory that these individuals have accumulated while working on the two recently established districts, and to avoid the staff time and expense involved with multiple selection processes which staff believes would result in the same conclusion and recommendation to contract with the same firms, staff is recommending that the city contract with them for all future financing districts within the Otay Ranch territory. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby waive the consultant process as impractical and approve the agreements with the bond counsel firm of Brown, Diven, Hessell & Brewer LLP, the investment banking firm of Stone & Youngberg LLC and the financial advisory form of Fieldman, Rolapp & Associates to continue to provide specialized professional services related to infrastructure financing districts within the Otay Ranch territory, copies of which shall be kept in the office of the City Clerk. 9/5 BE authorized to Chula vista. IT FURTHER RESOLVED that the Mayor is hereby execute said agreements on behalf of the City of Presented by Approved as to form by ~ SJ)J1CU J~aheny, Ci~rney Robert Powell, Director of Finance h,\home\attorney\reso\bond.csl 2 ~/~ COUNCIL AGENDA STATEMENT ITEM /ZJ MEETING DATE 3/16/99 ITEM TITLE: RESOLUTION /'13 S'j Granting authority for settlement of claims arising out of the February 6, 1998, Sink Hole on Malta Avenue and appropriating funds therefor SUBMITTED BY: Director of Human Reso~rr^sQJJ REVIEWED BY: City Manager~~~\ (4/5th Vote: Yes]l No_l City Attorney ~{ This action will increase the settlement authorization previously granted for property damage claims arising out of the February 6, 1998, sink hole on Malta Avenue and will appropriate funds for their resolution. RECOMMENDATION: That Council approve the resolution. BOARD/COMMISSION RECOMMENDATION: N/A DISCUSSION: Subsequent to obtaining initial claims settlement authority in September 1998, the need for additional funding to cover expenses and issues related to the losses have been identified. This action will authorize settlement and will appropriate the funds needed for known settlement costs. FISCAL IMPACT: $2,500 will be appropriated from the available balance of the Storm Drain Revenue Fund (Fund 227 to account 227-2271-5441) to pay these claims. A 113 Disk - Additional Funds for Malta Ave A 113 ~ Word - March 9, 19994:07 PM 1!J --/ RESOLUTION NO. /93'tJ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING AUTHORITY FOR SETTLEMENT OF CLAIMS ARISING OUT OF THE FEBRUARY 6, 1998 SINK HOLE ON MALTA AVENUE AND APPROPRIATING FUNDS THEREFOR WHEREAS, liability claims are normally paid directly from the Insurance budget; and WHEREAS, because a property damage claim arose out of the February 6, 1998 sink hole on Malta Avenue due to a failure of a city storm drain, it has been deemed appropriate that funds from the Storm Drain Revenue Fund be used to finance the claim payments; and WHEREAS, utilization of these funds will also facilitate tracking of expenditures, which may be reimbursable from FEMA. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby grant authority for settlement of claims arising out of the February 6, 1998 sink hole on Malta Avenue by appropriating $2,500 from the available balance of the Storm Drain Revenue Fund (Fund 227 to Account 227-2271-5441) to pay these claims. Presented by Approved as to form by -C Candy Emerson, Director of Human Resources Cit~ A torney C/ H:\home\attorney\reso\malta.app //J./ ~ COUNCIL AGENDA STATEMENT Item: / J Meeting Date: 3/16/99 ITEM TITLE: Resolution Approving the reclassification of one Fire Engineer position to a Fire Captain to augment the Training Division and provide support to the Communications Center. SUBMITTED BY: DIRECTOR OF HUMAN RESOURCEs(YJ REVIEWED BY' CITY MANAGE~ ""t\ ~ (415ths Vote: Yes _No!J RECOMMENDATION: Adopt Resolution approving reclassification of a Fire Engineer position to Fire Captain. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable DISCUSSION: Human Resources staff has evaluated the Rre Department's Training Division resulting in the aforementioned recommendation. The impetus for the recommendation is a combination of a variety of factors: Computer Aided Dispatch (CAD), Mobile Data Computers (MTC's), 800 Mhz radio communications, increased workload in the Training Division, and reassignment of the Principal Management Assistant to the Nature Center. The recent citywide restructuring along with the introduction of new technology, has resulted in an increased workload for the Fire Department's Training Division. An area of responSibility assigned to this division is the oversight of Fire and Emergency Medical Dispatching which has become an increasingly sophisticated and specialized assignment. In order to better serve the community it is proposed that a Fire Engineer position in the Rre Prevention Bureau be reclassified to Fire Captain and be reassigned to the Training Division. The incumbent would have functional responsibility for Communication Center issues relating to the Fire Department. This would benefit the Police and Fire Departments by facilitating resolution of overlapping issues, the community and the City as a whole by assigning an additional resource to an area where attention is needed. //- / Initial primary duties of this position would include: ./ Identify, clarify and participate in resolving Fire and Medical dispatching issues. ,r Improve training and standardization of Fire and Medical dispatching procedures. ,r Work with Police Department staff to coordinate Police, Fire and Medical dispatching. ,r Communicate with all Fire Officers regarding dispatching issues. ,r Assist in troubleshooting system problems. ,r Meet regularly with Lead Communications Operators. ,r Function as liaison between ambulance companies and dispatch. Within time, it is anticipated that other duties will be added. These include: ,r Assist in training activities. ,r Represent the Fire Department on the Citywide Safety Committee ,r Work with Risk Management on safety training issues. ./ Assist in the development of training standards. ,r Assist in the Class B certification and general driver training program. ,r Develop an Apprentice Program for the Fire Department. ./ Serve as Drill Master at the Training Tower. ,r Oversee and become the subject-matter expert for the automated staffing software to be implemented this fiscal year. ,r Provide instruction at the Regional In-Service Training Program. FISCAL IMPACT: There will be no net increase in cost for this reclassification. Savings due to the civilian replacement in Rre Prevention will offset salary increase and vehicle costs. //~2 RESOLUTION NO. /93JtJ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE RECLASSIFICATION OF ONE FIRE ENGINEER POSITION TO A FIRE CAPTAIN TO AUGMENT THE TRAINING DIVISION AND PROVIDE SUPPORT TO THE COMMUNICATIONS CENTER WHEREAS, Human Resources staff has evaluated the Fire Department's Training Division resulting in a recommendation to reclassify a Fire Engineer position to Fire Captain; and WHEREAS, the impetus for the recommendation is a combination of a variety of factors: Computer Aided Dispatch (CAD), Mobile Data Computers (MTC's), 800 Mhz radio communications, increased workload in the Training Division, and reassignment of the Principal Management Assistant to the Nature Center; and WHEREAS, the recent citywide restructuring along with the introduction of new technology has resulted in an increased workload for the Fire Department's Training Division and the assignment of the oversight of Fire and Emergency Medical Dispatching to this division has made it an increasingly sophisticated and specialized assignment; and WHEREAS, in order to better serve the community, it is proposed that a Fire Engineer position in the Fire Prevention Bureau be reclassified to Fire Captain and be assigned to the Training Division. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby approve the reclassification of one Fire Engineer position to a Fire Captain to augment the Training Division and provide support to the Communications Center. Presented by Approved as to form by Candy Emerson, Director of Human Resources ./YL.~ . - City ttorney H: \home\attorney\reso\reclass. fir ///3 COUNCIL AGENDA STATEMENT ITEM TITLE: A) ,. ') Item I; t7-- Meeting Date 3/9/99 Resolution ) 9 J 9 / Approving Final Maps of Chula Vista Tract No. 92-02, Salt Creek Ranch, Neighborhood 2, Units 6 through 10, Accepting on Behalf of the City of Chula Vista, Public Streets and Easements Granted on Said Maps within Said Subdivisions, Rejecting on Behalf of the City of Chula Vista, All Open Space Lots Granted on Said Maps within Said Subdivisions, and Approving Subdivision Improvement Agreements for the Completion of Improvements Required by Said Subdivisions, and Authorizing the Mayor to Execute Said Agreements B) Resolution /9.J 9 J- Approving Supplemental Subdivision Improvement Agreement for Chula Vista Tract 92-02, Salt Creek Ranch, Neighborhood 2, Units 6 through 10, and Authorizing the Mayor to Execute Said Agreements SUBMITTED BY: Director of Public Works REVIEWED BY: City Manag~ ~ (4/Sths Vote: Yes_NoX) On October 6, 1992, by Resolution No. 16834, City Council approved the Tentative Subdivision Map for Chula Vista Tract 92-02, Salt Creek Ranch (see Attachment 1). On that tentative map, neighborhood boundaries were delineated. The Final Maps, Subdivision Improvement Agreements, and Supplemental Subdivision Improvement Agreement for Neighborhood 2, Units 6 through 10, are now before Council for consideration and approval. RECOMMENDATION: That Council approve the resolutions approving: (A) the Final Maps and Subdivision Improvement Agreements; and (B) the Supplemental Subdivision Improvement Agreement. BOARDS/COMMISSIONS RECOMMENDATION: None. leJ--/ Page 2, Item Meeting Date 3/9/99 DISCUSSION: Final Maps and Associated Imorovement Agreements Neighborhood 2 is generally located north of Proctor Valley Road and west of Hunte Parkway along the northern boundary of Salt Creek Ranch. The final maps for each unit consist of the following: No. of Number of Lots for Open Space, Total Final Map Single Public Utilities / Other Public Uses Acreage Family Units Neighborhood 2, Unit 6 17 2 7.787 Neighborhood 2, Unit 7 20 1 7.646 Neighborhood 2, Unit 8 20 0 5.000 Neighborhood 2, Unit 9 20 1 5 .097 Neighborhood 2, Unit 10 15 1 3 .736 I TOTALS I 92 I 5 I 29.266 II The plat for Neighborhood 2 is attached as Attachments 2. The final maps for the five subdivisions have been reviewed by the Departtnent of Public Works and found to be in substantial conformance with the approved Tentative Map. Approval of the maps constitutes acceptance by the City of all drainage, sewer, tree planting, general utility, and general access easements within each of the corresponding subdivisions. Approval of the maps also constitutes acceptance, on behalf of the public, of the following streets: /;2 - d--. Page 3, Item Meeting Date 3/9/99 Salt Creek Ranch Subdivision Name Dedicated Streets Neighborhood 2, Unit 6 Portions of Hunte Parkway, and portions of Los Altos Drive and Montecito Road Neighborhood 2, Unit 7 Portions of Hunte Parkway, and Santa Theresa Court Neighborhood 2, Unit 8 Portions of Los Altos Drive Neighborhood 2, Unit 9 Portions of Los Altos Drive and portions of El Portal Drive Neighborhood 2, Unit 10 Portions of El Portal Drive and Santa Angela Court Approval of the maps also constitutes acceptance of ten foot-wide general utility easements within Open Space Lots for the installation and maintenance of public utilities, and 5 1f2' tree planting and maintenance easements along interior streets, noting that use of said easements by others is subject to written permission and issuance of an Encroachment Permit from the City of Chula Vista. Since the five open space lots will be maintained by the Rolling Hills Ranch Homeowners' Association (HOA), the City is rejecting the dedication of all open space lots on all Final Maps. Approval of the maps, therefore, does not constitute acceptance of the Open Space lots. However, Section 7050 of the Government Code of the State of California provides that an offer of dedication shall remain open and subject to future acceptance by the City. The City is receiving an Irrevocable Offer of Grant of Fee Interest in the Open Space lots as part of the Subdivision approval documents. Phasing of the completion of the local parks for this project has been re fined. The neighborhood park implementation has been initiated before the community park as a result of existing constituent expression to the City of a need for local park facilities sooner than was feasible for the community park design and implementation. The decision to implement the neighborhood park before the community park was previously agreed upon by the former Director of Parks and Recreation, City Administration and the Developer, as well as by the City Council in connection with approval of Salt Creek Ranch, Neighborhoods 3 and 4 in 1998. The developer has executed one Supplemental Subdivision Improvement Agreement for all five maps in order to satisfy remaining Tentative Map conditions of approval of CVT 92-02. The Tentative Map conditions of approval are presented in Attachment 1 per Resolution 16834. /2- 3> Page 4, Item Meeting Date 3/9/99 Developer has agreed, unless otherwise conditioned, to comply with all unfulfilled conditions of approval of the Salt Creek Ranch Tentative Map, Tract 92-02 established by Resolution No. 16834 approved by Council on October 6, 1992. The developer has also executed Subdivision Improvement Agreements for each of the five maps and has provided bonds to guarantee construction of the required public improvements and to guarantee the subdivision monumentation and benchmarks. The developer has paid all applicable fees. The Subdivision Improvement Agreements and bonds are on file in the office of the City Clerk. The Developer has further agreed to provide improvement securities to guarantee labor, mater ial and faithful performance for the following: Labor & Faithful Public Improvements Materials Performance Monumentation Salt Creek Ranch $ 333,625.00 $ 333,625.00 $ 3,300.00 Neighborhood 2, Unit 6 Salt Creek Ranch $ 202,375.00 $ 202,375.00 $ 3,740.00 Neighborhood 2, Unit 7 Salt Creek Ranch $ 115,000.00 $ 115,000.00 $ 3,850.00 Neighborhood 2, Unit 8 Salt Creek Ranch $ 105,475.00 $ 105,475.00 $ 3,740.00 Neighborhood 2, Unit 9 Salt Creek Ranch $ 88,450.00 $ 88,450.00 $ 2,970.00 Neighborhood 2, Unit 10 FISCAL IMPACT: None. All staff costs associated with processing of improvement plans and final map will be reimbursed from developer deposits. Attachment 1: Attachment 2: Chula Vista Tract 92-02, Resolution 16834 Plat - Salt Creek Ranch Neighborhood 2 Units 6 through 10 [FILE NO. 0600-80-RH-002.J,4,5,6 FJ [H,IHOMEIENGINEERILANDDEVICASSCRlb.DEK] February 26, 1999 (1:57pm) )~~f RESOLUTION NO. ) '1. J 9/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING FINAL MAPS OF CHULA VISTA TRACT NO. 92-02, SALT CREEK RANCH, NEIGHBORHOOD 2, UNITS 6 THROUGH 10, ACCEPTING ON BEHALF OF THE CITY PUBLIC STREETS AND EASEMENTS GRANTED ON SAID MAPS WITHIN SAID SUBDIVISIONS, ACKNOWLEDGING ON BEHALF OF THE CITY OF CHULA VISTA ALL OPEN SPACE LOTS OFFERED ON SAID MAPS WITHIN SAID SUBDIVISIONS, AND APPROVING SUBDIVISION IMPROVEMENT AGREEMENTS FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY SAID SUBDIVISIONS, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS 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 92-02 SALT CREEK RANCH NEIGHBORHOOD 2, UNIT 6, and more particularly described as follows: Being a subdivision of a portion of the North Half of the Southwest Quarter and a portion of the South Half of the Northwest Quarter of section 26, Township 17 South, Range 1 West, San Bernardino Meridian, in the County of San Diego, State of California, according to United States Government Survey thereof. Area: 7.787 Acres Numbered Lots: 17 Open Space Lots: 1.863 No. of Lots: 19 Lettered Lots: 2 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 portions of Hunte Parkway and Los Altos Drive and Montecito Road; 5-1/2 foot easements with the right of ingress and egress for the construction and maintenance of tree planting along dedicated streets, and ten foot general utility and access easements within Lots "Au and "B" for installation of public utilities, noting that use of said general utility and tree planting 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. 1 /0217 - / BE IT FURTHER RESOLVED, said Council hereby acknowledges on behalf of the City of Chula Vista, the Irrevocable Offer of Grant of Fee Interest in Lots "A" and "B" for Open space and Other Public Purposes as shown on this map within this subdivision, noting that section 7050 of the Government Code of the State of California provides that such offers of dedication may be accepted at any future time by the city Council. BE IT FURTHER RESOLVED that the city Clerk of the city of Chula Vista be and 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 said public streets are dedicated for public use, and that those certain easements with the right of ingress and egress for the construction and maintenance of street tree planting, general utility and 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 be and she 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 that certain Subdivision Improvement Agreement, a copy of which shall be kept on file in the office of the City Clerk for the completion of improvements in said subdivision, is hereby approved. BE IT FURTHER RESOLVED that the City Council of the City of Chula vista hereby finds that certain map survey entitled Chula Vista Tract 92-02 SALT CREEK RANCH NEIGHBORHOOD 2, UNIT 7, and more particularly described as follows: Being a subdivision of a portion of the South Half of the Northwest Quarter of Section 26, Township. 17 South, Range 1 west, San Bernardino Meridian, in the County of San Diego, State of California, according to unites States Government Survey thereof. Area: 7.647 Acres Numbered Lots: 20 Open Space Lots: 1.137 No. of Lots: 21 Lettered Lots: 1 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 a portion of Hunte Parkway and Santa Theresa Place; and 5-1/2 foot easements with the right of ingress and egress for the construction and maintenance of tree planting along dedicated streets, and ten foot general utility and 2 /:2/1 -;L access easements within Lot "A" for installation of public utilities, noting that use of said general utility and tree planting easement by others is subject to written permission and issuance of an Encroachment Permit from the City of Chula Vista as shown on this map within this subdivision, subject to the conditions set forth thereon. BE IT FURTHER RESOLVED, said Council hereby acknowledges on behalf of the City of Chula Vista, the Irrevocable Offer of Grant of Fee Interest in Lot "A" for Open space and Other Public Purposes as shown on this map within this sUbdivision, noting that Section 7050 of the Government Code of the State of California provides that such offers of dedication may be accepted at any future time by the city Council. BE IT FURTHER RESOLVED that the city Clerk of the city of Chula vista be and she 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 said public streets are dedicated for public use, and that those certain easements with the right of ingress and egress for the construction and maintenance of street tree planting, general utility and 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 be and she 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 that certain Subdivision Improvement Agreement, a copy of which shall be kept on file in the office of the City Clerk, for the completion of improvements in said subdivision, is hereby approved. BE IT RESOLVED that the City Council of the City of Chula Vista hereby finds that certain map survey entitled Chula vista Tract 92 - 02 SALT CREEK RANCH NEIGHBORHOOD 2, UNIT 8, and more particularly described as follows: Being a subdivision of a portion of the South Half of the Northwest Quarter of Section 26, Township 17 South, Range 1 West, San Bernardino Meridian, in the County of San Diego, State of California, according to United States Government Survey thereof. Area: 5.000 Acres Numbered Lots: 20 No. of Lots: 20 Lettered Lots: 0 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. 3 );</J -) BE IT FURTHER RESOLVED, said Council hereby accepts on behalf of the City of Chula Vista a portion of Los Altos Drive; 5-1/2 foot easements with the right of ingress and egress for the construction and maintenance of tree planting along dedicated streets, noting that use of tree planting 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. BE IT FURTHER RESOLVED that the City Clerk of the city of Chula Vista be and she 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 said public streets are dedicated for public use, and that those certain easements with the right of ingress and egress for the construction and maintenance of street tree planting, 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 be and she 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 that certain Subdivision Improvement Agreement, a copy of which shall be kept on file in the office of the City Clerk, for the completion of improvements in said subdivision, is hereby approved. BE IT RESOLVED that the City Council of the City of Chula vista hereby finds that certain map survey entitled Chula Vista Tract 92 - 02 SALT CREEK RANCH NEIGHBORHOOD 2, UNIT 9, and more particularly described as follows: Being a subdivision of a portion of the South Half of the Northwest Quarter of Section 26, Township 17 South, Range 1 West, San Bernardino Meridian, in the County of San Diego, State of California, according to United States Government Survey thereof. Area: 5.097 Acres Numbered Lots: 20 Open Space Lots: 0.473 No. of Lots: 21 Lettered Lots: 1 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 portions of Los Altos Drive and El Portal Drive; 5-1/2 foot easements with the right of ingress and 4 /c28 - Y egress for the construction and maintenance of tree planting along dedicated streets, and a ten foot general utility and access easement within Lot "Au for installation of public utilities, noting that use of said general utility and tree planting easement 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. BE IT FURTHER RESOLVED, said Council hereby acknowledges on behalf of the City of Chula Vista, the Irrevocable Offer of Grant of Fee Interest in Lot "A" for Open Space and Other Public Purposes as shown on this map within this subdivision, noting that section 7050 of the Government Code of the State of California provides that such offers of dedication may be accepted at any future time by the City Council. BE IT FURTHER RESOLVED that the City Clerk of the City of Chula vista be and 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 said public streets are dedicated for public use, and that those certain easements with the right of ingress and egress for the construction and maintenance of street tree planting, general utility and 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 be and she 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 that certain Subdivision Improvement Agreement, a copy of which shall be kept on file in the office of the City Clerk, for the completion of improvements in said subdivision, is hereby approved. 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 92-02 SALT CREEK RANCH NEIGHBORHOOD 2, UNIT 10, and more particularly described as follows: Being a subdivision of a Portion of the South Half of the Northwest Quarter of Section 26, Township 17 South, Range 1 west, San Bernardino Meridian, in the County of San Diego, State of California, according to United States Government Survey thereof. Area: 3.736 Acres Numbered Lots: 15 Open Space Lot: 0.431 No. of Lots: 16 Lettered Lots: 1 Acres 5 ) :2A~~ 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 a portion of El Portal Drive and Santa Angela Court; 5-1/2 foot easements with the right of ingress and egress for the construction and maintenance of tree planting along dedicated streets, and ten foot general utility and access easements within Lot "An for installation of public utilities, noting that use of said street tree planting and general utility and 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. BE IT FURTHER RESOLVED, said Council hereby acknowledges on behalf of the City of Chula Vista, the Irrevocable Offers of Grant of Fee Interest in Lot "An for Open Space and Other Public Purposes, as shown on this map within this subdivision, noting that Section 7050 of the Government Code of the State of California provides that such offers of dedication may be accepted at any future time by the City Council. BE IT FURTHER RESOLVED that the city Clerk of the City of Chula vista be and 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 said public streets are dedicated for public use, and that those certain easements with the right of ingress and egress for the construction and maintenance of street tree planting, general utility and 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 be and she 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 that certain Subdivision Improvement Agreement, a copy of which shall be kept on file in the office of the city Clerk, for the completion of improvements in said subdivision, is hereby approved. Presented by Approved as to form by ~~:~ney John P. Lippitt, Director of Public Works H:\home\attorney\reSO\SCRN2.610 6 )~/9 - ~ 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 CZ~~ay of V'tAJl..-l<...-.\ ,1999, by and between THE CITY OF CHULA VISTA, a municipal cbrporation, hereinafter called "city", and PACIFIC BAY PROPERTIES, 2300 Boswell Road, Suite 209, Chula vista, Ca. 91914, 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 SALT CREEK RANCH, NEIGHBORHOOD 2, UNIT 6, 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 WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into -1- /)/} / :; 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. 16834, approved on the 6th day of October, 1992 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 99-04 through 99-16, 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 $667,250.00. 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 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 -2- /)/J - f5 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 Three Hundred Thirty Three Thousand, six Hundred Twenty Five Dollars ($333,625.00), 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 Three Hundred Thirty Three Thousand, Six Hundred Twenty Five Dollars ($333,625.00) 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 Three Thousand, Three Hundred Dollars ($3,300.00) (per private engineer's estimate) 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 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 -3-/J/J -1 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. 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 -4- /;2/j-/tJ 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 adj acent 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. IN WITNESS agreement to be forth. WHEREOF, the parties hereto have caused this executed the day and year first hereinabove set THE CITY OF CHULA VISTA SUBDIVIDER: PACIFIC BAY PROPERTIES Mayor of the City of Chula Vista C?(t4-- 0 (~ 0-:(. ATTEST City Clerk Approved as to form by if/--zrrfl~ '. ~ Clty ney (Attach Notary Acknowledgment) -5- J..2/J~// CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ~-C-'- -,-~- ~ ~ ~ > " ~ " ~ ;: " ~ 9, ~ ~ ? g ~ ~ ~ g g ~ g g ~ ~ ~ g ~ ~ ~ g g g g g ~ g ~ ~ ~ g g P; ~ g ~ :)'- Reorde~ Call Toll-Free 1-800-876-6827 State of California County of Qf p,. V\ Q e.....- On ~<2.. St1~,ibefore me, \ Date ___ } ss, \0 personally appeared Name{s) a/Signer(s) ~ personally known to me ~ ~rQ\/99 t8 ",(.. 6" tA8 g3~iE: sf satisfaetory ev;J.....,cc to be the person~ whose name~ isf!lllf<. subscribed to the within instrument and acknowledged to me that I\(>fsheft~ executed the same in ~fherft~ authorized capacity(~, and that by I)(!;/her/t'rtjilr signaturel'i} on the instrument the personOO, or the entity upon behalf of which the person(j(l acted, executed the instrument. WITNESS my hand and official seal. a ~ Place Notary Seal Above OPTIONAL " , Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual o Corporate Officer - Title(s}: o Partner - 0 Limited 0 General o Attorney in Fact o Trustee C Guardian or Conservator o Other: Top of thumb here Signer Is Representing: .;<J- @1997NationaINotaryAssociation.9350De$010Ave., P.O. Box 2402' Chalsworth, CA 91313.2402 Prod. No. 5907 /,)/J ~);2 LIST OF EXHIBITS Exhibit "A" Improvement Security - Faithful Performance Form: Bond Amount: $333,625.00 Exhibit "B" Improvement Security - Material and Labor: Form: Bond Amount: $333,625.00 Exhibit "C" Improvement Security - Monuments: Form: Bond Amount: $3,300.00 securities approved as to form and amount by (f~~~. City Attorney Improvement Completion Date: Two (2) years from date of Council approval of the Subdivision Improvement Agreement H:\home\attorney\sia\SCRN2U6 -6- );28~JJ 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 TH AGREEMENT, made and entered into this~~~ay of , 1999, by and between THE CITY OF CHULA VISTA, a municipal co oration, hereinafter called "city", and PACIFIC BAY PROPERTIES, 2300 Boswell Road, Suite 209, Chula vista, Ca. 91914, 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 SALT CREEK RANCH, NEIGHBORHOOD 2, UNIT 7, 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 WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into -1- J02/J ~/f 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. 16834, approved on the 6th day of October, 1992 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 99-04 through 99-16, 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 $404,750.00. 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 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 -2 - ,--- /2// -/~ 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 Two Hundred Two Thousand, Three Hundred Seventy Five Dollars ($202,375.00), 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 simultaneo'usly 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 Two Hundred Two Thousand, Three Hundred Seventy Five Dollars ($202,375.00)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 Three Thousand, Seven Hundred Forty Dollars ($3,740.00) (per private engineer's estimate) 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 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 -3- )J/J~/~ 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. 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 -4 - J J./J -r) 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 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. 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 SUBDIVIDER: PACIFIC BAY PROPERTIES ~~~~ V.r. Mayor of the City of Chula Vista ATTEST City Clerk Approved as to form by ~ ~(jj1(r~~ City Jdrney (Attach Notary Acknowledgment) -5- J)/J-/~ CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ,,- it ~ ~ ~ ~ 0, g g ~ g ~ ~ g ~ g ~ g ~ g g g g I g ~ rt ~ I'. '.' I g ~ ~ ~ ~ g :' ' Signer Is Representing: ~ g , . . ..... . ... . . . .. .. . . . ..... .. . ..... g ~~~~~'9;.~'g,;.~~~~~~~~'g;,.~~~'Q<..-'g..'<"<(..~'9..,'9..~~'9..'9..'9..,"'="V~'g;.'g,,.'9.;.~~'9..~~'9..,~'9..~'Q'~ @ 1997 National Notary Association' 9350 De Solo Ave., P.O. Box 2402 . Chatsworth. CA 91313-2402 Prod. No, 5907 Reorder: Call Toll-Free 1_800_876_6827 '" State of California County of Qr p.- V\ Q e-- $!11,/before me, On G Dale personally appeared Name(s) ofSigner(s) fi:l personally known to me ~ I3f6vea lu lilt:: 011 t1ge BGI~ii gf EatisFactapj ..e.iek",Ge to be the person~ whose name~ is/~ subscribed to the within instrument and acknowledged to me that ~/she/t~ executed the same in ~/her/t~ authorized capacity(~, and that by I)(S/her/t~r signaturel'i,} on the instrument the personOO, or the entity upon behalf of which the person()(l acted, executed the instrument WITNESS my hand and official seal. ~ ~ Place Notary Seal Above Signa r of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons retying on the document and could prevent fraudulent removar and reattachment of this (ann to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual D Corporate Officer - Title(s): D Partner - D Limited 0 General D Attorney in Fact o Trustee D Guardian or Conservator o Other: . Top of thumb here J.2/l -/9 LIST OF EXHIBITS Exhibit "A" Improvement Security - Faithful Performance Form: Bond Amount: $202,375.00 Exhibit "B" Improvement Security - Material and Labor: Form: Bond Amount: $202,375.00 Exhibit "C" Improvement Security - Monuments: Form: Bond Amount: $3,740.00 Securities approved as to form and amount by ,@~~l~ J1 City At4ney Improvement Completion Date: Two (2) years from date of Council approval of the Subdivision Improvement Agreement H:\home\attorney\sia\SCRN2U7 -6- JcJ/J r 20 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 d- ~\-\- ~~ T~IS AGREEMENT, made and entered into this ~ day of r\t~\,L ,1999, by and between THE CITY OF CHULA VISTA, a municipal corporation, hereinafter called "City", and PACIFIC BAY PROPERTIES, 2300 Boswell Road, Suite 209, Chula Vista, Ca. 91914, 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 SALT CREEK RANCH, NEIGHBORHOOD 2, UNIT 8, 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 al ternat i ve 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 WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into -1- /2/) /.2/ 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. 16834, approved on the 6th day of October, 1992 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 99-04 through 99-16, 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 $230,000.00. 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 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 -2- / c2ll- ~ .2 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 One Hundred Fifteen Thousand Dollars ($115,000.00), 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 One Hundred Fifteen Thousand Dollars ($115,000.00)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 Three Thousand, Eight Hundred Fifty Dollars ($3,850.00) (per private engineer's estimate) 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 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 -3- j)/j ~ 23 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. 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, -4- /2 /} /;z L-j however, that the approved improvement security shall not b required to cover the provisions of this paragraph. Suc indemnification and agreement to hold harmless shall extend t damages to adjacent or downstream properties or the taking 0 property from owners of such adjacent or downstream properties a, a result of the construction of said sUbdivision and the publi( improvements as provided herein. It shall also extend to damagei resulting from diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, 01 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 suet 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. IN WITNESS agreement to be forth. WHEREOF, the part ies hereto have caused this executed the day and year first hereinabove set THE CITY OF CHULA VISTA SUBDIVIDER: PACIFIC BAY PROPERTIES Mayor of the City of Chula Vista d{P- J ~ u? ATTEST City Clerk Approved as to form by eM 3YYl /;H CitY~rney ~ (Attach Notary Acknowledgment) -5- --- J.1;:J~tl!? CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT ~ On D," $!11,ibefore me~ ~ IG ~ personally appeared g Name(s)ofSigner(s) ~ g ~ ~ g B I i ~ j...... ..... .... ... ..... ..... .... A ... ... ..... ... ... ... _~.. ....:.:... UNDAJ.SMITH E <z '.'" :t., COMM.#10593BO z ~ CII.... .- Z Z . .~... ... ,..;. NotoryPubllc - California ~ J ..' OAANGE COUN= .. ..", My Comm. expires MA V 21.1999 ... .... ... ~ ..... ~ .... ~ ~ -~ ~ personally known to me [J tJl uv....a te rTIC SA tt:lg g:a~i~ gf ~3titfaetory (.w;cJ['Ae~ to be the person~ whose name~ is/~ subscribed to the within instrument and acknowledged to me that rw/she/t~ executed the same in i\iIl./her/t~ authorized capacity(~. and that by Il(!;/her/thjllr signaturel'i.) on the instrument the personOO. or the entity upon behalf of which the person(J(l acted. executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above OPTIONAL Though the information below is not required by law, it may prove vafuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: D Individual D Corporate Officer - Title(s): [J Partner - D Limited 0 Genera! C Attorney in Fact D Trustee o Guardian or Conservator D Other: . Top of thumb here ~ ~ ~ ~ Signer Is Representing: g ~ ,^,'<;;<<.,.~~~~~~~'g;.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.)'J @ 1997 National Notary Association' 9350 De Soto Ave.. P.O. Box 2402. Chatsworth, CA 91313-2402 Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827 ) J../J r 02 ? ~ ~ .& . however, that the approved ~ml?rovement security shall not be required to cover the prov~s~ons 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. 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 SUBDIVIDER: PACIFIC BAY PROPERTIES Mayor of the City of Chula vista J "7. ATTEST City Clerk Approved as to form by e5!4~~~ city orney (Attach Notary Acknowledgment) -5- );2/}r;27 LIST OF EXHIBITS Exhibit "An Improvement Security - Faithful Performance Form: Bond Amount: $115,000.00 Exhibit "B" Improvement Security - Material and Labor: Form: Bond Amount: $115,000.00 Exhibit "C" Improvement Security - Monuments: Form: Bond Amount: $3,850.00 Securities approved as to form and amount by & r;:-CIYlr ut; ~ city~ney Improvement Completion Date: Two (2) years from date of Council approval of the Subdivision Improvement Agreement H:\home\attorney\sia\SCRN2UB -6- ).,2/9--;L ?5 Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chu1a 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 AGREEMENT, made and entered into thi~~ay of , 1999, by and between THE CITY OF CHULA VISTA, a rporation, hereinafter called "City", and PACIFIC BAY 2300 Boswell Road, Suite 209, Chu1a Vista, Ca. 91914, 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 Chu1a Vista for approval and recordation, a final subdivision map of a proposed subdivision, to be known as SALT CREEK RANCH, NEIGHBORHOOD 2, UNIT 9, 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 Chu1a 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 WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into -1- /1/7 ~ ~a; 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. 16834, approved on the 6th day of October, 1992 ("Tentative Map Resolution"); and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the city Engineer, as shown on Drawings Nos. 99-04 through 99-16, 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 $210,950.00. 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 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 -2- /J./J~3o 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 One Hundred Five Thousand, Four Hundred Seventy Five Dollars ($105,475.00), which security shall guarantee the faithful performance of this contract by Subdivider and is attached hereto, marked Exhibit "A" and made a part hereof. 7. Subdivider further agrees to furnish and deliver to the City of Chula vista simultaneously with the execution of this agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of One Hundred Five Thousand, Four Hundred Seventy Five Dollars ($l05,475.00)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 Three Thousand, Seven Hundred Forty Dollars ($3,740.00) (per private engineer's estimate) 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 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 -3- ) 1/J - 3 I 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 ~n 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. 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 -4- /J/J~J2 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 adj acent 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. 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 SUBDIVIDER: PACIFIC BAY PROPERTIES Mayor of the City of Chula Vista ~hA~ u? ATTEST City Clerk Approved as to form by ~~lC-UL~ City rney U (Attach Notary Acknowledgment) -5- /02/9-J] CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT ~- State of California County of Of p.. V\ Q e..... $t1'J,/before me, On G Date personally appeared Name(s) otSigner(s) ~ personally known to me C plovGa lv lilt:: VII Ule l.Ja";,, vr ~dli;:>rcll...lvly El'/iElsAse 1 I' ~..... . - - - - .... . ..... ... & - - .... .I ' . .:.. ". UNDAJ.SMIlH f ~ t_:.:..~:~ COMM. #1059380 z z : .~..... .':;> Notary Public - California ~ J .c;" OIlANG. COUN= ., " ..,,' MvComm. Explres MAY 21.1999 : "'--""'",Iii~~...J~ to be the person~ whose name~ is/~ subscribed to the within instrument and acknowledged to me that ~/she/t~ executed the same in ~her/t~ authorized capacity(~, and that by ~/her/thj(ir signature~ on the instrument the personOO, or the entity upon behalf of which the persontlQ acted, executed the instrument. WITNESS my hand and official seal. , Place Notary Seal Above OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Limited 0 General o Attorney in Fact o Trustee D Guardian or Conservator o Other: TOp of thumb here ~ ~ I ~ - ~~ Reorder Call Toll-Free 1-800-876~6827 Signer Is Representing: ~- @ 1997 National Notary Association' 9350 De Solo Ave P.O. Box 2402 . Chatsworth. CA 91313-2402 Prod. No. 5907 )l/J~31 -~- ,I ~ ~ ~ ~ ~ ~ ~ ~.~' 'I 1 " g ] 'I LIST OF EXHIBITS Exhibit II A" Improvement Security - Faithful Performance Form: Bond Amount: $105,475.00 Exhibit "B" Improvement Security - Material and Labor: Form: Bond Amount: $105,475.00 Exhibit "C" Improvement Security - Monuments: Form: Bond Amount: $3,740.00 securities approved as to form and amount by rf~J)1LC~uy- City Attorney Improvement Completion Date: Two (2) years from date of Council approval of the Subdivision Improvement Agreement H:\home\attorney\sia\SCRN2U9 -6- J)/-J~J~ Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chu1a 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 I:~ T~S AGREEMENT, made and entered into this~~ay of ILA~ ,1999, by and between THE CITY OF CHU A VISTA, a municipal co poration, hereinafter called "City", and PACIFIC BAY PROPERTIES, 2300 Boswell Road, Suite 209, Chula Vista, Ca. 91914, 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 SALT CREEK RANCH, NEIGHBORHOOD 2, UNIT 10, 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 WHEREAS, Subdivider is willing in consideration of the approval and recordation of said map by the Council, to enter into -1- J;L/} ~3k 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. 16834, approved on the 6th day of October, 1992 ("Tentative Map Resolution"]; and WHEREAS, complete plans and specifications for the construction, installation and completion of said public improve- ment work have been prepared and submitted to the city Engineer, as shown on Drawings Nos. 99-04 through 99-16, 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 $176,900.00. 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 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 -2- Jc2/9~3 ? 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 Eighty Eight Thousand, Four Hundred Fifty Dollars ($88,450.00), 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 Eighty Eight Thousand, Four Hundred Fifty Dollars ($88,450.00) 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 Two Thousand, Nine Hundred Seventy Dollars ($2,970.00) (per private engineer's estimate) 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 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 -3- J :2 /-1 -3(5' 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. 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, -4 - /.J.A /3'} however, that the approved ~mI?rovement security shall not be required to cover the prov~s~ons of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adj acent 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. 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 SUBDIVIDER: PACIFIC BAY PROPERTIES Mayor of the City of Chula Vista vi) (/A,?t- J {O ()7. ~ ATTEST city Clerk Approved as to form by ~ . c . J:~~l~~ c~ty ney (Attach Notary Acknowledgment) -S-J-2/J ~ tfC CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT y; - " State of California County of Of p,. '{\ a e.....- On $'1~17before me, Dale G personally appeared Name(s}of Signer(s) 5?i personally known to me n pre':ed to Ill" OR tile; Lau;.! of satisfsetory 'i\lid~r1<;:'li' - - - ------~--.. UNDA J. SMITH t COMM. #1059300 Z to be the person(';b whose name~ is/~ subscribed to the within instrument and acknowledged to me that ~/she/t~ executed the same in ~her/t~ authorized capacity(~, and that by I)(.S/her/thJ4r signaturel'i) on the instrument the personOO, or the entity upon behalf of which the person~ acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above ,- , I- OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. " , 1 Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: o Individual o Corporate Officer - Title(s): o Partner - 0 Limited 0 General o Attorney in Fact o Trustee D Guardian or Conservator o Other: Top of thumb here ~ ~ .", Reorder: Call Toll-Free 1-800-876-6827 Signer Is Representing: ,l(,;- @1997NationaINolaryAssociation'9350DeSotoAve. P.O. Box 2402' Chalsworth, CA 91313.2402 Prod. No. 5907 J~/J ~ il ex' @ ~ ~I... ., - ., ~ ~ ~ ~ ~ g ~ g " I LIST OF EXHIBITS Exhibit "A" Improvement Security - Faithful Performance Form: Bond Amount: $88,450.00 Improvement Security - Material and Labor: Form: Bond Amount: $88,450.00 Exhibit "B" Exhibit "c" Improvement Security - Monuments: Form: Bond Amount: $2,970.00 Securities approved as to form and amount by I~ . :f/7l (-~~ v ~ City Attorney Improvement Completion Date: Two (2) years from date of Council approval of the Subdivision Improvement Agreement H;\home\attorney\sia\SCRN2U10 -6- J;2A~'lJ RESOLUTION NO. ) '93 9,), RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR CHULA VISTA TRACT NO. 92-02, SALT CREEK RANCH, NEIGHBORHOOD 2, UNITS 6 THROUGH 10, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the developer has executed a Supplemental Subdivision Improvement Agreement in order to satisfy remaining Tentative Map conditions of approval of CVT 92-02; and WHEREAS, developer has agreed, unless otherwise conditioned, to comply with all unfulfilled conditions of approval of the Salt Creek Ranch Tentative Map, Tract 92-02 established by Resolution No. 16834 approved by Council on October 6, 1992. 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. 92-02, Salt Creek Ranch, Neighborhood 2, Units 6 through 10, 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 CY-w6)1l <l:'--t Joh . Kaheny, ~ttorney John P. Lippitt, Director of Public Works H,\home\attorney\reSO\SCRN2.610 /c2/J- / RECORDING REQUESTED BY, Ci ty Clerk WHEN RECORDED MAIL TO, CITY OF CHULA VISTA 276 Fourth Avenue Chu1a Vista, CA 91910 No transfer tax is due as this is a conveyance to a public agency of less than a fee interest for which no cash consideration has been paid or received. Developer Above Space for Recorder's Use SUPPLEMENTAL SUBDIVISION IMPROVEMENT AGREEMENT FOR SALT CREEK RANCH, CHULA VISTA TRACT 92-02, NEIGHBORHOOD 2, UNITS 6 THROUGH 10 (Conditions 2, 4, 58, 59, 68, 69, 70, 73, 80, 121, 123, 124, 125, and 126 of Resolution No. 16834) This Supplemental Subdivision Improvement Agreement ("Agreement") is made this &I$-Hr-day of E-e..b{'\J.kR.-4 , 1999, by and between THE CITY OF CHULA VISTA, California ("Ciey" or "Grantee" for recording purposes only) and PACIFIC BAY PROPERTIES, a California Corporation, formerly known as PACIFIC BAY HOMES, a California Corporation successor by merger to FN DEVELOPMENT COMPANY, ALPHA, a California Corporation successor by merger to FN Development Company, BRAVO, a California Corporation, as owner ("Developer" or "Grantor"), with reference to the facts set forth below, which recitals constitute a part of this Agreement: RECITALS A. This Agreement concerns and affects certain real property located in Chula vista, California, more particularly described on Exhibit "A" attached hereto and incorporated herein ("Property"). The Property is part of a proj ect commonly known as SALT CREEK RANCH, CHULA VISTA TRACT 92-02 SALT CREEK RANCH. For purposes of this Agreement the term "Project" shall mean "Property". B. Developer is the owner of the Property. 1 J;)/J-c1 C. Developer has applied for and the city has approved a Tentative Subdivision Map commonly referred to as Salt Creek Ranch, Chula Vista Tract No. 92-02, ("Tentative Subdivision Map") for the subdivision of a large parcel of property including the subject Property. D. The City has adopted Resolution No. 16834 ("Resolution") pursuant to which it has approved the Tentative Subdivision Map subject to certain conditions as more particularly described in the Resolution. The description of the conditions in this recital section of this Agreement is intended only to summarize and paraphrase such conditions in the Resolution, and is not intended herein to modify or explain them, and is not intended as a basis for interpreting them. E. City is willing, on the premises, security, terms and conditions herein contained to approve the final map for which Developer has applied as being in substantial conformance with the Tentative Subdivision Map described in this Agreement. NOW, THEREFORE, in exchange for the mutual covenants, terms and conditions herein contained, the parties agree as set forth below. 1. Agreement Applicable to Subsequent Owners. 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 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 community and other parties public or private, in whose favor and for whose benefit 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, Developer may have the right to obtain a release of any of Developer's obligations under this Agreement, provided Developer obtains the prior written consent of the city to such release. Such assignment shall, 2 /2!J r- } however, be subj ect to this Agreement and the Burden of this Agreement shall remain a covenant running with the land. The City shall not withhold its consent to any such request for a release so long as the assignee acknowledges that the Burden of the Agreement runs with the land, assumes the obligations of the Developer under this Agreement, and demonstrates, to the reasonable 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 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. 2. Condition No.2 - (Public Facilities Financing Plan). In satisfaction of Condition No. 2 of Resolution 16834, Developer shall install public facilities in accordance with the Public Facilities Financing Plan adopted by Resolution No. 16555 and as may be amended from time to time ("PFFP") or as required by the City Engineer to meet threshold standards adopted by the City of Chula Vista. In addition, the sequence that improvements are constructed shall correspond to any future East Chula Vista Transportation Phasing Plan as may be amended in accordance with the final HNTB SR-125 Financing Study adopted by the City. The City Engineer and Director of Planning and Building may, at their discretion, modify the sequence of improvement construction should conditions change to warrant such a revision. 3. Condition No.4 - (General Preliminary). In satisfaction of Condition No. 4 unless otherwise conditioned, the Developer shall comply with, remain in compliance with, and implement, the terms, conditions and provisions of the Salt Creek General Development Plan, Sectional Planning Area Plan, and such Master Plan of Reclaimed Water, Urban Runoff Report, Habitat Enhancement Plan, Master Plan of Sewage, Water Conservation Plan, the Air Quality Improvement Plan Design Guidelines and the PFFP approved by the Council ("Plans") as are applicable to the property which is the subject matter of the Tentative Map, prior to approval of the Final Maps, or shall have entered into an agreement with the City, providing the City with such security (including recordation of covenants running with the land) and implementation procedures as the city may require, assuring that, after approval of the Final Map, the Developer shall continue to comply with, remain in compliance with, and implement such Plans. Developer hereby agrees to waive any claim that the adoption of a final Water Conservation Plan or Air Quality Improvement Plan constitutes an improper subsequent imposition of the condition. 3 J:l8~1 4. Condition No. 58 - (Indemnification). In satisfaction of Condition No. 58 of Resolution 16834, Developer hereby agrees to defend, indemnify and hold harmless the City and its agents, officers and employees, from any claim, action or proceeding against the City, or its agents, officers or employees to attack, set aside, void or annul any approval by the city, including approval by its Planning commission, City Councilor any approval by its agents, officers, or employees with regard to this subdivision provided the City promptly notifies the subdivider of any claim, action or proceeding and on the further condition that the City fully cooperates in the defense. 5. Condition No. 59 - (Hold Harmless). In satisfaction of Condition No. 59 of Resolution 16834, Developer hereby agrees to hold the City harmless from any liability for erosion, siltation or increase flow of drainage resulting from this project. 6. Condition No. 68 - (Open Space, Parks, Recreation Master Plan). In satisfaction of Condition No. 68 of Resolution 16834, Developer shall prepare, submit and obtain Director of Planning and Building's approval of a comprehensive Master Plan for the open space system, recreation trails and parks which shall include, but not be limited to, phasing of the installation of facilities in accordance with the recreation needs analysis. The Master Plan shall reflect: a. More precise location, parks, recreation and equestrian trails on the Tentative Map. size and configuration of and fencing than indicated b. the community Creek. A multi-use bridged trail crossing of Salt Creek to park in Phase 1 to create an east/west link over Salt c. The extension of equestrian and recreation trail systems to the eastern property boundary on the south side of Proctor Valley Road. d. Pedestrian walkways from cul-de-sac ends on Streets DD, FF, and GG designed with open ends along Proctor Valley Road west of Hunte Parkway to the walk system adjacent to Proctor Valley Road. e. All open space access points shall have a minimum of 10 ft. clear vehicular surface, with an additional 2 ft. clear on either side of any vertical obstructions. f. Determination of the proposed open space district parcel boundaries and maintenance responsibilities. 4 );lE~5 g. An equestrian-style fence adjacent to the 10 foot recreation trail along the north side of the Community Park, adjacent to Proctor Valley Road, and continuing along the trail at the east side of the park to the point where the trail enters the park. h. Extension of the recreation trail within lots K and L adj acent to EastLake, along the southerly property line of Neighborhood 4, along the westerly property line of said Neighborhood (future San Miguel Road), and the westerly edges of the Neighborhood Park and the Fire Station site. This trail shall be a minimum of 10 feet in width and provide maintenance vehicle access to each adjacent open-ended residential cul-de-sac. i. All aspects of work in the open space network and the park sites shall, when completed, comply with all approved landscape and irrigation standards. j. The design, installation and improvement of the parks/open spaces shall, when completed, be in accordance with the standards set forth in the City Landscape Manual as may be amended from time to time. k. The above Master Plan for Phase One as identified in the PFFP shall be completed by the Developer on or before June 30, 1999. I. The above Master Plan for Phase Two and Phase Three as identified in the PFFP shall be completed by the Developer on or before January 31, 2000. 7. Condition No. 69. (Park Phasing). In satisfaction of Condition No. 69 of Resolution 16834, Developer hereby agrees to the following: a. Developer agrees to construct, at its sole expense, the portions of Proctor Valley Road and Duncan Ranch Road identified by the city Engineer as necessary to access the parking lot driveway of the community Park, in accordance with the provisions herein. Developer shall commence construction of said street improvements on or before March 31, 2001 and shall complete construction of the streets on or before March 31, 2002. All construction work shall be completed in a good and workmanlike manner, under the direction and to the satisfaction of the City Engineer. Developer understands and agrees that in the performance of construction of said street improvements, Developer shall conform to and abide by all city standards, the provisions of the ordinances of the City of Chula Vista, and the laws of the State of California applicable to said work. Prior to commencing construction of said street improvements, Developer agrees to furnish and deliver to the city, and to thereafter maintain until City acceptance of said work, an improvement security as required 5 /:lg~? by City ordinance, from a sufficient surety, whose sufficiency has been approved by the City. b. On or before March 31, 2001, Developer agrees to provide the city with fee title, in a form approved by the City attorney and free and clear of all encumbrances, to that real property, identified as the Community Park. The site of said Community Park shall be subject to the approval of the Director of Planning and Building and shall equal a total of 22 gross acres. Developer further agrees to commence construction of the Community Park no later than March 31, 2001. Developer may extend commencement of construction of the Community Park for a period of time approved by the city, if such postponement is caused in the opinion of the Director of Planning and Building by the City's delay in approving park plans for the Community Park or for some other reason approved by the City. The level of amenities required to be constructed by Developer for the Community Park shall be determined by the Director of Planning and Building in conjunction with the Park Master Plan. The Developer shall complete construction of the Community Park on or before March 31, 2002. c. On or before April 2, 1999, Developer agrees to provide the City with fee title, in a form approved by the City attorney and free and clear of all encumbrances, to that real property, identified as the Neighborhood Park. The site of said Neighborhood Park shall be subject to the approval of the Director of Planning and Building and shall equal a total of 5.71 net usable acres and 7.1 gross acres. Developer further agrees to commence construction of the Neighborhood Park no later than April 2, 1999. Developer may extend commencement of construction of said park for a period of time approved by the city, if such postponement is caused in the opinion of the Director of Planning and Building by the City's delay in approving park plans for the park or for some other reason approved by the City. The level of amenities required to be constructed by Developer for the Neighborhood Park shall be as set forth in the Rolling Hills Ranch Neighborhood Park Master Plan, as approved by the City Council, and may be modified and approved by the Director of Planning and Building. The Developer shall complete construction of the Neighborhood Park within one year of commencing construction of said park. d. Developer understands and agrees, that if the Community Park or Neighborhood Park are not completed within the time agreed herein and/or in accordance with the appropriate park master plans,approved by the city, the sums provided by Developer in accordance with the Letter Agreement with Pacific Bay Homes and the City of Chula vista, dated October 1, 1997, may be used by City for the completion of said improvements. e. For purposes of this paragraph 7, the term completion of construction of the parks shall mean that construction of the parks have been completed and accepted by the Director of Planning 6 /c2!J-,) and Building, but prior to the City's established maintenance period. 8. Condition No. 70 - (Neighborhood Park). In satisfaction of Condition No. 70 of Resolution 16834, Developer shall dedicate all required parkland (22 gross acres, Community Park, 7 gross acres, Neighborhood Park) and construct park improvements in accordance with the Master Plan and construction documents prepared pursuant to Condition 73 as "turn-key" projects. The Director of Planning and Building shall have the right of final approval in the selection process of the general contractor for both of the park sites. 9. Condition No. 73 - (Park Design). In satisfaction of Condition No. 73 of Resolution 16834, Developer shall enter into a Chula Vista standard three party agreement with the City of Chula Vista and a design consultant, for the design of all aspects of the neighborhood and community parks in accordance with the Master Plan whereby the Director of Planning and Building selects the design consultant. The agreement shall include, but not be limited to, the design development phase, the construction document phase and the construction supervision phase for the park sites. The construction documents shall reflect the then current requirements of the City's Code/Manual requirements. 10. Condition No. 80 - (Greenbelt Access). In satisfaction of Condition No. 80 of Resolution 16834, Developer shall provide a 10 feet wide access path for maintenance vehicles in the greenbelt open space area (lots D-8 through 8-8) bisecting Neighborhoods 1 & 2. Final landscape materials and design for this area shall be consistent with open space criteria, subject to approval of the Director of Planning and Building and the Director of Public Works prior to approval of the final subdivision map for Subarea 1 (Phase 1 of the PFFP) . 11. Condition No. 121 - (Chula Vista Municipal Code). In satisfaction of Condition No. 121 of Resolution 16834, Developer shall comply with all applicable sections of the Chula Vista Municipal Code. Preparation of the Final Map and all plans shall be in accordance with the provisions of the Subdivision Map Act and the City of Chula Vista Subdivision Ordinance an subdivision Manual. 12. Condition No. 123 - (Fire Sprinkler Requirements). In satisfaction of Condition No. 123 of Resolution 16834, Developer shall provide some lots with residential fire sprinkler systems due to access requirements as determined by the Fire Marshal. In multi-family dwellings, if a sprinkler system is required for one building, all buildings in the project shall be sprinklered. 13. Condition No. 124 satisfaction of Condition No. (Salt 124 of Creek Ranch SPA). In Resolution No. 16834, 7 /J-8-r Developer shall make all proposed development consistent with the Salt Creek Ranch SPA Planned Community District Regulations, subject to the approval of the Director of Planning and Building. 14. Condition No. 125 - (Energy Conservation Ordinances). In satisfaction of Condition No. 125 of Resolution No. 16834, Developer shall comply with Title 24 and any other energy conservation ordinances and policies in effect at the time construction occurs on the Property in conformance with this Tentative Map. 15. Condition No. 126 - (Federal, State, Local Regulations) . In satisfaction of Condition No. 126 of Resolution No. 16834, Developer shall Comply with all relevant Federal, State and Local regulations, including the Clean Water Act. The Developer shall be responsible for providing all required testing and documentation to demonstrate said compliance as required by the city Engineer. 16. satisfaction of Conditions. City agrees that the execution and strict compliance with all requirements of this Agreement constitutes satisfaction of Developer's obligation of Conditions 2, 4, 58, 59, 68, 69, 70, 80, 121, 123, 124, 125, and 126 of Resolution No. 16834. 17. Building Permits. Developer understands and agrees that the city may withhold the issuance of building permits for the Property, should the Developer be determined by the City to be in breach of any of the terms of this Agreement. The City shall provide the Developer of notice of such determination and allow the Developer with reasonable time to cure said breach. 18. Unfulfilled Conditions. Developer hereby agrees, unless otherwise conditioned, that Developer shall comply with all unfulfilled conditions of approval of the Salt Creek Ranch Tentative Map, Tract 92-02 established by Resolution No. 16834 approved by Council on October 6, 1992. 19. prepared party. Recording. This Agreement, or an abstract hereof by either or both parties, may be recorded by either 20. Miscellaneous. a. Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.S. mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in this Agreement. A party may 8 /c2B ~/ 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 Developer: PACIFIC BAY PROPERTIES 2300 Boswell Road Suite 209 Chula Vista, CA 91914 Attn: Liz Jackson Division Manager 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. c. Entire Agreement. This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. This Agreement is not intended to supersede or amend any other agreement between the parties unless expressly noted. d. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. e. Recitals7 Exhibits. Any recitals set forth above and exhibits attached hereto are incorporated by reference into this Agreement. f. Attorneys' Fees. If either party commences litigation for the judicial interpretation, reformation, enforcement or rescission hereof, the prevailing party will be entitled to a judgment against the other for an amount equal to reasonable 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 SIGNATURE PAGE] 9 )2!J- /0 -- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first herein above set forth. CITY OF CHULA VISTA DEVELOPER: PACIFIC BAY PROPERTIES Attest: Mayor [Title] Beverly Authelet, City Clerk By: Approved as to Form: .~~ V ( John . aheny, city torney [Name] [Title] (Attach Notary Acknowledgment) H,\Hom,,\Attomry\SSIA\SUppsc.a 10 ))J]~)/ Exhibit "AU [TO BE ATTACHED] 11 J 2!]~ /2 EXHIBIT 'A' .-"\ , , J SALT CREEK RANC~ LEG~~ DESCRIPTION ?J.3CEL 1.: T--; NORT2 ?~~F OF T.~E SOUTrtw~ST QU~RTER OF SECTION 25, TOh~S?-IP 17 SO~JC~, ~BGE 1 WEST, SAN BE?B~~~INO MERIDI~~, IN T~E CO~JCf OF S~~ I:'::~GO, STJ._'E OF Cl-..LI?O?..NIA, ~_CCO?.DING TO UNITED STF.TE:S GOV~?~=:hl S"C?_-v~Y TE~~OF_ ~XCE?TING ~~FROM T~.AT PORTION DESCRIBED IN DEED TO E~t(Y G. F~~?ON, RECO?~ED AUGUST 31, 1938 IN BOOK 810, PAGE 380 OF OFFICI~~ P3CO?~S. -'-C-- 2 ::'~..='.. =...L : l:-; SOUT.-0:2..!.5T QU~_~TER OF SECTION 25, TOWNSEIP 1 7 SOUT.~, ~~GE 1 lEST, SJ..N 3ERNA?~"'0 B~..5E ~_~l) MERIDIA..~, IN Th~ COUNTY OF S~B DIEGO, ST~.TE OF G,T,IFO?Jifl.l'_, J'-.CCORDING TO UNITED STJ>.TES GOVERNMENT SURVEY, ~~PROVED _I.....??..I~ l 7, 1533. t~ =M-20:~~;~NN-~'~::~~C-?O-~;~N~~~T3yPODR~;DOND;~~VD~~M'~~ ~09 TEl-~89S50~N"~-3-ffiONOKG2!~53IFO~GI~ ',-e,;' . Ul'___.L. "_~.l~., .'___'" ' ~~ _~.~ 0__ _ , -'-. , ..~.~ 100 OF DEEDS, DESC~I3ED ;:'..5 FOLLOWS: crn~NCING ~T A POIh~ LOCJ>~ED NORTH 34030' WEST 2,575 FEET FROM Th~ SODT:~E.:!l..5T CO?JifER OF SAID SECTION 25, T.-ffiNCE TRUE NORT3 57.20 FEET (?3CO?~ NOR=~ 57.00 FEET); TEENCE TRUE w~ST 300 FEET; TEENCE TRu~ sou~~ 145.2 ~=:T; ~~~NC~ T~u~ ~~ST 300 F=:=:T; T~3NCE TRU3 NOR~3 78.2 FEET TO POIle OF CO~~ENCE!~NT. ?;.-'~~c:=:!., 3: TEE SOUTh~.5T QU~_~TER OF TEE NORT?-E.:!l..5T QU?_~TER, THE E.!..5T ?~~F OF TEE SOul?-E.~ST QTIpRTER ~~~ T?-E SOUTHWEST QU~RTER OF THE SO~~EAST QU~RTER, J.~L IN SECTION 27, TOh~SEIP 17 SOUTE, RPBGE 1 WEST, S~B BE~~~~INO Bp..5E ~~l) MERIDI?_~, IN TF3 COUNTY OF SA..~ DIEGO, STATE OF CJ>~IFORNIA, ~.CCO?~ING TO mETED S'T.!.TES GOVE!L><MENT SURVEY, )l.PPROv~D )l.PRIL 17, 18 S 3. EXCE?'TING T~;REFROM 'T~~T PORTION OF SAID ~~l) LYING WIT-~IN ?p_~CEL VL~? NO. 15480, ::N TEE CIn OF cqu~z.. VISTA, COUNTY OF S~_~ DIEGO, STATE 0= C~~IFO?~~IA, FILED IN T2E OFFICS OF T2E COU~Y RECORDER OF S~_~ DIEGO COU1\TY, D~C~w2~R 2, 1958 ~~ FILE NO. 88-619593 OF O:=ICI~~ RSCO?~S. C'I '<cJ /2fJ--)J "'1 ?;'-?C::::L 4:: T~~ EAST F~~F OF THE SOUTHEAST QUARTER OF SECTION 23 ~~D THE NORT~ F~~F OF THE SOUTHWEST QUARTER OF SECTION 24, ALL IN TOWNSHIP 17 smrr:-i:, ~~GE 1 WEST, SAN BERNARDINO BASE AND MERIDI~~, IN THE COUNTY OF S~~ DIEGO, STATE OF C~.LIFORNIA, ACCORDING TO UNITED ST~.TES GOVERNMENT Su""RVEY THEREOF. P.~~CEL 5: T:':~ NORT:::S-Z,..5T QUARTER OF THE NORTHEAST QU~.RTER ~_lID TIE SOUTHS-Z\ST QU~.RTER OF T.~~ NORTdEAST QUARTER OF SECTION 26, TOWNSHIP 17 SOUTH, R~~GE 1 WEST, SAN BERNARDINO MERIDIAN, CODrITY OF SAN DIEGO, STATE OF ~.LIFORNIA, ACCORDING TO UNITED STATES GOVER~NT SURVEY THEREOF. PJo3CEL 6: T:':E SOUTH ~~.LF OFT.-i:E NORTHWEST QUARTER OF THE SOUT.-i:WEST QU~.RTER OF T~3 NORTHE~..5T QUARTER OF SECTION 25, TOWNSHIP 17 SOUT.-i:, R~~GE 1 WEST, Sl'_N" BERN.~-?-DINO MERIDIAN, IN Ti-:~ COUNTY OF SAN DIEGO, STATE OF Cl'~IFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY T:::EREOF. CD FJo_'<.cEL 7: TF3 WEST T::""REE QU~.RTERS OF THE SOUTIrWEST QU~.RTER OF THE SOUTi-:""WEST QUJo_'l.TER 0: SECTION 24, THE WEST THREE QUJl.RTERS OF TH:::: NORTHWEST QUJl.RTER OF T:::E NORTtiWEST QUARTER OF SECTION 25, TOWNSHIP 17 SOUTH, RZ,~G~ 1 WEST, SA-N" BERNARDINO M~RIDIJl~, COurITY OF SA-N" DIEGO, STATE OF CALI FORN"IA, ACCORDING TO UNITED STATES GOVERN"MENT SU""RV~Y T:::~REOF. ?~-=:C:::L B: 1::=. SOUTHS-Z,..5T QUARTER OF THE SOUTH""WEST QUJl.RTER Jl.ND T:':E EAST QUARTE" OF "'".- SOUTH",,=:ST QU~.RTER OF THE SOUTHWEST QUl'_'<.TER OF SECTION 24. T::::::: NORTF~Z,..5T QUARTER OF THE NORTHWEST QUARTER, THE S-~..5T QUARTER OF T~~ NORTrtwEST QU~RTER OF THE NORTHWEST QU~_~TER ~_~ T2E SOUTH E~~F 0: T:::E NORTHWEST QUl'.RTER OF SECTION 25, ALL BEING IN TOWNSHIP 17 SOUT:::, RZ,~GE 1 WEST, SAN BERNARDINO MERIDI~.N, 1'.CCORDING TO UNITED STATES GO'~?~ENT SLJ""RVEY, APPROVED APRIL 17, 1883. .) " ....J /28~/i . , ,~ ?:'.?.C=:L 9: T-~!'T PORTION OF T?."E SOUTH Hl'.LF OF THE SOUTHWEST QUARTER OF SECTION 25, TOWNSHIP 17 SOUTH, ?~GE 1 WEST, SAN BERNARDINO MERIDI~~, COu~TY OF SJ._~ DIEGO, STATE OF CALIFORNL?;, ACCORDING TO UNITED ST~.TES GOVERNMENT Su~VEY APEROVED APRIL 17, 1883, DESCRIBED AS FOLLOWS: BEGINNING ;t.T A POINT ON THE NORTH LINE OF SAID SOUTH H.!;LF OF THE SOUTHWEST QU~~TER OF SAID SECTION 25, DISTANT THEREON SOLJ;rd 88053'30" =:'~.5T 1136. 70 FEET FROM THE NORTHWEST CORNER THEREOF; THENCE SOUTH 42.048'30" EJ..5T 1817 FEET, MORE OR LESS, TO A POINT ON THE SOUTH LINE OF SAID SECTION 25, SAID SOU1:~ LINE BEING ~.LSO THE NORTH BOUND~_~Y LINE OF ?~!;NCHO J~~AL; T:~:;NCE ~~ONG SAID BOUNDARY LINE SOtnLd 88049' E~.5T TO T?3 EAST LlbI"E OF SAID SOUTH HALF OF SOUTHWEST QUARTER OF' SAID SECTION 25; THENCE ALONG SAID EAST LINE NORTH 0012' EAST 1332.13 FEET TO A FOUR - INCH CONCRETE FILLED PIPE SET IN STONE MOUND FOR NORTHEAST CO?~R OF SJ..ID SOU1:~ F.ALF OF SOUTHWEST QUARTER, AND AS SHOWN ON RECORD OF SURVEY V~~ NO. 663 ON FILE IN THE OFFICE OF THE COUNTY RECOP~ER OF S;t.ID SAN DEGO COUNTY; TIreNCE .Z\LONG THE NORTH LINE OF SAID SOU1:~ F.Jl.LF OF SOUTrrvEST QUARTER NORTH 88053'30" WEST 1578.87 FEET TO THE POINT OF BEGINNING. EXCEPTING Tr-"EREFROM TdAT PORTION DESCRIBED IN DEED TO THE SOUTHE?~ CJ..LIFORNIA MOUNTAIN WATER COMP~~, RECORDED MAY 4, 1905 IN BOOK 363, :01 PAGE 154 OF DEEDS. ,..y ?J._:KEL 10: T-.-:E SOU'THW=.ST QU~~T::3. OF THE NORTHEAST QUARTER OF SECTION 26, TOWNSHIP 17 SOUTH, ?.Jl.NGE 1 WEST, SAN 3ERN~.RDINO MERIDIA.l>i', IN THE COUNTY OF S~~ DIEGO, STJ..TE OF CJ..LI FORNIJ.., ACCORDING TO UNITED STATES GOV=.?.lII"MENT ST.:?..VEY TE:=:?..:=:/_;F. ??-_~C=:L 11: THE SOUTH H.~.LF OF THE NORTHWEST QUARTER OF SECTION 26, TOWNSHIP 17 SOulH, RJ.~GE 1 WEST, SA.l>i' BE~l>i'J.~DINO MERIDIAN, IN THE COUNTY OF SJ.~ DIEGO, STATE OF CJ..LIFOP~IA, ACCORDING TO UNITED STJ..TES GOVER.1'WJENT Su?,VEY THE?,EOF. ?!._?C:=:L 12: THE SOUTH F.Jl.LF OF THE SOUTHWEST QUARTER OF SECTION 26, TOWNSHIP 17 SOUlE, ?.Jl~GE 1 WEST, SA.l>i' BERN~.RDINO MERIDIAN, IN THE COUNTY OF SA.l>i' DIEGO, STATE OF C.~.LIFO~l>i'IJ.., ACCORDING TO UNITED STATES GOVER.1'WJENT SG?v"EY THE?.EOF. 'd /:28- /~ ~ .\ A <y ;,~ ?Z:...RC=:L 13: T~];.T PORTION OF THE NORTH HALF OF THE SOUTHwEST QUARTER OF SECTION 26, TOw"NSHIP 17 SOUTH, PJillGE 1 WEST, Sl>.N BERNARDINO VlERIDI l>.N , IN TrlE COUNTY OF Sl>.N DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SUrt.VEY THEREOF, LYING NORTHERLY OF PROCTOR Vl'..LLEY ROl'.D_ ?_Z:.-RC:2L 14: EF.T PORTION OF THE NORTH HF..LF OF TrlE SOUTHwEST QUl>.RTER OF SECTION 26, TOWNSHIP 17 SOUTH, ?_ZlNGE 1 WEST, Sl'.N BERNARDINO MERIDIl>.N, IN THE COUNTY OF Sl'.N DIEGO, STATE OF Cl'..LIFORNIA, ACCORDING TO UNITED STATES GOVER.l\lMENT SURVEY THEREOF , LYING SOUTHERLY OF PROCTOR VALLEY ROl'.D. ?!:.3C2L 1 5 : T:""Y.T PORTION OF THE SOUTHEAST QUARTER OF SECTION 26, TOWNSHIP 17 SOUT:~, R.~~GE 1 w~ST, SAN BERNARDINO BASE F_~ MERIDIF_~, IN THE COUNTY OF SA-~ DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SUrt.VEY, APPROVED l>~RIL 17, 1883, DESCRIBED l>~ FOLLOWS: COMMENCING l'oT A POINT LOCATED NORTH 34"030' WEST 2,575 FEET FROM THE SOUT:'EAST COP.NER 0= Sl'.ID SECTION 26, THENCE TRUE NORTH 67.20 =EET (RECORD NORT:o{ 67.00 FEET); THENCE TRUE w~ST 300 FEET; THENCE TRUE SOUT:q 145.2 FEET; THENCE TRUE El>~T 300 FEET; THENCE TRuL NORTH 78.2 FEET TO POlh~ OF CO~~ENCEMENT. jc2!5r- J;? COUNCIL AGENDA STATEMENT ITEM TITLE: A) Item /.3 Meeting Date 3/16/99 Resolution ) 'J .3 93 Approving Restatement of Subdivision Improvement Agreement for the Completion of Improvements Required by Eastlake South Greens, Unit 16 and Authorizing the Mayor to Execute Said Agreement B) Resolution / 'j .5 <( l' Approving Restatement of Subdivision Improvement Agreement for the Completion of Improvements Required by Eastlake South Greens, Unit 10 and Authorizing the Mayor to Execute Said Agreement / --- C) Resolution) 9 3 '7 ~ Approving Restatement of Subdivision Improvement Agreement for the Completion of Improvements Required by Baldwin Companies, Neighborhood 3, Unit 7 and Authorizing the Mayor to Execute Said Agreement SUBMITTED BY: Director of Public Works.~ REVIEWED BY: City Manage~~~\ (4/5ths Vote: Yes_NoX) Kaufman and Broad Coastal, Inc. is the Guest Builder of the following subdivision neighborhoods: . Eastlake Greens Unit 16 . Eastlake Greens Unit 10 . Telegraph Canyon Estates, Neighborhood 3Unit 7 and is requesting a restatement of the original Subdivision Improvement Agreements in order to substitute their bonds for those of the original owners. As provided for in a Subdivision Improvement Agreement, a guest builder can be assigned specific portions of the obligations identified by the agreement. RECOMMENDATION: That Council adopt the resolutions approving restatement of the original Subdivision Improvement Agreements for Eastlake South Greens, Unit 16 and Unit 10 in addition to Telegraph Canyon Estates, Neighborhood 3, Unit 7. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: Kaufman and Broad Coastal, Inc. ,as assignee, is requesting to assume responsibility for all in-tract public improvements. The Eastlake Company and Baldwin Builders request to be released from any and all further obligations as to the property, and Kaufman and Broad desires to assume all of the duties as to the Property under the three original agreements, and to provide replacement bonds. Kaufman and Broad intends to assume all interior subdivision improvement /3 - / COUNCIL AGENDA STATEMENT Item Meeting Date 3/16/99 ITEM TITLE: A) Resolution Approving Restatement of Subdivision Improvement Agreement for the Completion of Improvements Required by EastIake South Greens, Unit 16 and Authorizing the Mayor to Execute Said Agreement B) Resolution Approving Restatement of Subdivision Improvement Agreement for the Completion of Improvements Required by EastIake South Greens, Unit 10 and Authorizing the Mayor to Execute Said Agreement C) Resolution Approving Restatement of Subdivision Improvement Agreement for the Completion of Improvements Required by Baldwin Companies, Neighborhood 3, Unit 7 and Authorizing the Mayor to Execute Said Agreement SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager (4/5ths Vote: Yes_No.x) Kaufman and Broad Coastal, Inc. is the Guest Builder of the following subdivision neighborhoods: · EastIake Greens Unit 16 · EastIake Greens Unit 10 · Telegraph Canyon Estates, Neighborhood 3Unit 7 and is requesting a restatement of the original Subdivision Improvement Agreements in order to substitute their bonds for those of the original owners. As provided for in a Subdivision Improvement Agreement, a guest builder can be assigned specific portions of the obligations identified by the agreement. RECOMMENDATION: That Council adopt the resolutions approving restatement of the original Subdivision Improvement Agreements for EastIake South Greens, Unit 16 and Unit 10 in addition to Telegraph Canyon Estates, Neighborhood 3, Unit 7. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: Kaufman and Broad Coastal, Inc. ,as assignee, is requesting to assume responsibility for ail in-tract public improvements. The EastIake Company and Baldwin Builders request to be released from any and all further obligations as to the property, and Kaufman and Broad desires to assume all of the duties as to the Property under the three original agreements, and to provide replacement bonds. Kaufman and Broad intends to assume all interior subdivision improvement )3~2... Page 2 Item Meeting Date 3/16/99 responsibilities under the three original agreements except as to Eastlake's monumentation and grading obligations which shall remain the responsibility of the Eastlake Company. The restatements of the original Subdivision Improvement Agreement are intended to amend and restate the Agreements and assume the same recording priority as the agreement. Kaufman and Broad Coastal, Inc. agrees to furnish and deliver to the City of Chula Vista simultaneously with the execution of the restatement of the original Subdivision Improvement Agreement for Unit 16 and Unit 10, Faithful Performance/ Material and Labor Bonds in the amount of $374,000.00 and $1,326,100.00, respectively. City agrees that immediately following execution of the restatement agreement by the Mayor, City will release to the Eastlake Company, those Faithful Performance/ Material and Labor Bonds posted by the Eastlake Company in connection with the original Subdivision Improvement Agreement. The same procedure will be executed for the Monumentation Bonds and Faithful Performance/ Material and Labor Bonds posted by the Baldwin Builders, all as shown on the table below. 1. EASTLAKE SOUTH GREENS. UNIT 16 On July 18, 1989, by Resolution 15200, the City Council approved the Tentative Subdivision Map for Chula Vista Tract 88-03, Eastlake South Greens. On February 10, 1998, by Resolution 18887, (Attachment 1) City Council approved the Tentative Subdivision Map for Chula Vista Tract 98-02 for Eastlake South Greens, Unit 16. On May 26, 1998, the City entered into the following agreement with The Eastlake Company, the original Developer of the property: a. A Subdivision Improvement Agreement (SIA), (Attachment 2) adopted pursuant to Resolution No. 19009 and recorded in the County Recorder's Office as Document No. 98- 0718843, by which Eastlake bonded for and agreed to make certain infrastructure improvements to all the property known as Eastlake South Greens, Unit No. 16. 4. EASTLAKE SOUTH GREENS. UNIT 10 On February 10, 1998, by Resolution 18888, (Attachment 3) City Council approved the Tentative Subdivision Map for Chula Vista Tract 98-03 for Eastlake South Greens, Unit 10. On May 26, 1998, the City entered into the following agreement with The Eastlake Company, the original Developer of the property: a. A Subdivision Improvement Agreement (SIA), (Attachment 4) adopted pursuant to Resolution No. 19011 and recorded in the County Recorder's Office as Document No. 98- 0718843, by which Eastlake bonded for and agreed to make certain infrastructure improvements to all the property known as Eastlake South Greens, Unit No. 10. 5. TELEGRAPH CANYON ESTATES. NEIGHBORHOOD 3. UNIT 7 On January 19, 1993, by Resolution 16960 (Attachment 5), the City Council approved the Tentative Subdivision Map for Chula Vista Tract 93-03, Telegraph Canyon Estates. On October /3- } Page 3 Item Meeting Date 3/16/99 19, 1993 by Resolution 17278, (Attachment 6), the City Council amended certain conditions of the previously approved Tentative Map. a. A Subdivision Improvement Agreement (SIA), (Attachment 7) adopted pursuant to Resolution No. 18000 and recorded in the County Recorder's Office as Document No. 1995-0378779, by which Baldwin Builders, a California Corporation bonded for and agreed to make certain infrastructure improvements to all the property known as Telegraph Canyon Estates, Neighborhood 3, Unit 7. The restatements of the original Subdivision Improvement Agreements for Eastlake South Greens, Unit 16, Eastlake South Greens Unit 10 and Telegraph Canyon Estates, Neighborhood 3, Unit 7 are now before Council for consideration and approval. The expiration date for the restatement SIA for Eastlake South Greens, Unit 16, and Eastlake South Greens Unit 10 shall be the expiration date as stated on the original SIA. The expiration date for the restatement SIA for Telegraph Canyon Estates, Neighborhood 3, Unit 7 shall be one year from Council approval of restatement since the intervening bankruptcy case of Baldwin Builders and related entities tolled performance under the original SIA time frame and work commenced on interior improvements in early 1998. BOND REPLACEMENT SUBDMSION BOND AMOUNT/TYPE. ORIGINAL NEW OWNER OWNER Eastlake Greens Unit 16 $374,000.00/ F.P. Eastlake Kaufman and Broad, $374,000.00/ M & L Company Coastal, Inc. Eastlake Greens Unit 10 $1,326,100.00,/ F.P Eastlake Kaufman and Broad, $1,326,100.00,1 M & L Company Coastal, Inc. Telegraph Canyon Estates, $79,576.00/F.P. Baldwin Builders Kaufman and Broad, Neighborhood 3, Unit 7 $79,576.00/M & L Coastal, Inc. $2,500.00 Monuments .Notes: F.P. = Faithful Performance Bond / M & L=Material and Labor Bond All conditions specified in all of the original Subdivision Improvement Agreements shall remain in effect. Additionally, Kaufman and Broad are indemnifying the City as to all approvals connected to the subdivision, including approval of the Restatement. FISCAL IMPACT: All staff costs associated with processing of Restatements of Subdivision Improvement Agreements for the Completion of Public Improvements will be reimbursed from developer deposits. )3-1 Attachments: Attachment I: Resolution 18887, February 10, 1998. Attachment 2: Subdivision Improvement Agreement for Eastlake South Greens Unit 16, dated 26 May, 1998 Attachment 3: Resolution 18888, February 10, 1998 Attachment 4: Subdivision Improvement Agreement for Eastlake South Greens Unit 10, dated 26 May, 1998 Attachment 5: Resolution 16960, January 19, 1993 Attachment 6: Resolution 17278, October 19, 1993 Attachment 7: Subdivision Improvement Agreement for Telegraph Canyon Estates, Neighborhood 3, Unit 7, dated 15 May, 1995 ll\HOMEIENGINEERILANDDEVICAS1016.DEK March 8, 1999 (5:20PM) /3-~ RESOLUTION NO. J 9 J 1] RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING RESTATEMENT OF SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY EASTLAKE SOUTH GREENS, UNIT 16 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Kaufman and Broad Coastal, Inc. is the Guest Builder for Eastlake Greens unit 16 and is requesting a restatement of the original Subdivision Improvement Agreement in order to substitute their bonds for those of the original owners; and WHEREAS, as provided for in a Subdivision Improvement Agreement, a guest builder can be assigned specific portions of the obligations identified by the Agreement. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby approve the Restatement of Subdivision Improvement Agreement for the completion of Improvements required by Eastlake South Greens, Unit 16, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt, Director of Public Works ~~?-~~ Jo . Kaheny, ci y Attorney H:\home\attorney\reso\restate.sia JJ/J') Recording Requested by: CITY CLERK When Recorded, Mail to: CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 [Xl This document benefits Permittee. Recording fee required. Restatement of Subdivision Improvement Agreement For EastLake South Greens, Unit 16 This Agreement made this , 199 for the purposes of reference only, and effective as of the date last executed, is between the city of Chula Vista ("City"), a chartered municipal corporation of the State of California, and The EastLake Company, LLC ("EastLake"), a California limited liability company, and Kaufman and Broad Coastal, Inc., ("Kaufman Broad"), a California corporation, and is made with reference to the following facts: I. Recitals A. The property which is the subject matter of this agreement is legally described as that property in the State of California, County of San Diego, as set forth at Map No. 13579 recorded in the San Diego County Recorder's Office on June 5, 1998, and consisting of approximately 11 acres ("Property") and as more particularly described on Exhibit A hereto; and B. On May 26, 1998, City entered into an agreement with EastLake entitled: "Subdivision Improvement Agreement", dated May 26, 1998 adopted pursuant to Resolution No. 19009, and recorded in the County Recorder's Office as Document No. 98-0718843 (" Agreement") , by which EastLake agreed to make certain infrastructure improvements to all the property known as EastLake South Greens, unit No. 16, consisting of approximately 11 acres, including the Property "Agreement"; and C. The Agreement was recorded against title to all of EastLake South Greens unit 16; and D. EastLake desires to sell Property to Kaufman Broad and to assign most of EastLake' s duties as to the Property under the Agreement to Kaufman Broad, to be released from any further obligation thereunder as to the Property, and Kaufman Broad desires to assume all of EastLake's duties as to the Property under the Agreement, except as to EastLake's monumentation obligations as 1 /]/}-:2.. set forth herein and to provide replacement bonds as to the duties that Kaufman Broad assumes under the Agreement; and E. Kaufman Broad is willing to enter into this Restatement of the Agreement ("Restatement") wherein it is provided that Kaufman Broad will install and complete, at Kaufman Broad's own expense, all the remaining public improvement work within the Property boundaries required by City in connection with the subdivision and will deliver to city improvement securities as approved by the City Attorney; and F. As to the Property, this Restatement is intended to amend and restate for Kaufman Broad the Agreement, and assume the same recording priority as the Agreement; and G. A tentative map of said subdivision has heretofore been approved, subject to certain requirements and conditions, as contained in Resolution No. 15200, approved on the 18th day of July, 1989 and Resolution No. 18887, approved on the lOth day of February, 1998 ("Tentative Map Resolutions"); and H. Complete plans and spe.cifications for the construction, installation and completion of said public improvement work have been prepared and submitted to the City Engineer, as shown on Drawings Nos. 97-657 through 97-653 inclusive, on file in the office of the City Engineer; and I. Kaufman Broad is willing to complete all public improvements shown on said drawings; and J. An estimate of the cost of constructing said public improvements according to said plans and specifications was submitted and approved by the City in the amount of seven hundred forty-eight thousand dollars and no cents ($748,000). NOW, THEREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED AS FOLLOWS: 1. Improvement Work. Kaufman Broad, for itself and its 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 Agreement except as set forth in paragraph 2 below; to do and perform or cause to be done and performed, as 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 said subdivision ("Improvement WOTk"); 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 by this reference are incorporated herein and made a part hereof. 2 J)/J '3 2. Monuments. EastLake expressly understands and agrees that all monuments have been or will be installed by EastLake within thirty (30) days after the completion and acceptance of the Improvement Work, and that EastLake has installed or will install temporary street name signs if permanent street name signs have not been installed. 3. Time for Performance. Except as set forth in paragraph 2 above, it is expressly understood and agreed that Kaufman Broad will cause all necessary materials to be furnished and all Improvement Work required under the provisions of this Restatement to be done or before the second anniversary date of Council approval of the Agreement. 4. Certificate of Clearance. It is understood and agreed that Kaufman Broad in place and stead of EastLake, except as set forth in paragraph 2 above, will perform said Improvement Work as set forth in the Agreement, 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. 5. Obey All Laws. It is expressly understood and agreed by Kaufman Broad and EastLake that, in the performance of said Improvement Work and monumentation, Kaufman Broad and EastLake 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. Faithful Performance Security. Kaufman Broad 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 three hundred seventy four thousand dollars and no cents ($374,000) which security shall guarantee the faithful performance of this Restatement by Kaufman Broad and is attached hereto, marked Exhibit "B" and made a part hereof. 7. Labor and Materials Securitv. Kaufman Broad 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 three hundred seventy four thousand dollars and no cents ($374,000) to secure the payment of material and labor in connection with the installation of said public improvements, which security is attached hereto, marked Exhibit "CO and made a part hereof. 3 J3A~i 8. Release of EastLake. City agrees that immediately following execution of this Agreement by the Mayor of the City of Chula Vista, city will release those faithful performance and material and labor securities posted by EastLake in connection with the Agreement. 9. Release Upon Completion of Work. 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 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 Kaufman Broad as to Improvement Work and EastLake as to the monumentation described in paragraph 2 or their successors in interest, pursuant to the terms of the improvement security. Should Kaufman Broad fail to perform its obligation and the City completes work, Kaufman Broad agrees to pay to the City any difference between the total costs incurred by the City to perform the Improvement Work, including design and administration of construction (including a reasonable allocation of overhead), and any proceeds from the improvement security. EastLake agrees to pay to the City any difference between the total costs incurred to perform the installation of monumentation, including design and administration of construction (including a reasonable allocation of overhead), and any proceeds from the improvement security should City be required to complete such work. 10. No Cost to city. 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 officers, their 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. Deposit of Costs. It is further understood and agreed by Kaufman Broad 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 Kaufman Broad, and that Kaufman Broad shall deposit, prior to 4 /)/) ~S- recordation of the Final Map, with City a sum of money sufficient to cover said cost. 12. Maintenance Responsibilitv. It is understood and agreed that until such time as all Improvement Work is fully completed and accepted by City, Kaufman Broad 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 Kaufman Broad shall guarantee all public improvements within the Property 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 Kaufman Broad, their agents or employees in the performance of this Restatement, and the Agreement, and that upon acceptance of the work by City, Kaufman Broad shall grant to City, by appropriate conveyance, the public improvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove. 13. Hold Harmless. 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 EastLake or Kaufman Broad, their agents or employees, or indemnitee, related to this agreement. Kaufman Broad 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 Kaufman Broad, their agents or employees, or indemnitee, related to this agreement or the Original Agreements; 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 adj acent 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. Indemnification. Kaufman Broad agrees to defend, indemnify, and hold harmless the City or its agents, officers, and 5 /]A~~ 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 including this Restatement, which action is brought within the time period provided for in Section 66499.37 of the Government Code of the State of California. 15. Oriqinal Aqreement. Additionally, Kaufman specifically agrees to comply with all terms contained Agreement except as set forth in paragraph 2 above. Broad in the 16. Aqreement Bindinq Upon Successors. be binding upon and inure to the benefit assigns, and interest of the parties as to Property until released by the mutual consent This agreement shall of the successors, any or all of the of the parties. 17. Aqreement Runs With The Land. The burden of the covenants contained in this agreement ("burden") is for the benefit of the land owned by the City adjacent to the Property. The burden touches and concerns the Property. It is the intent of the parties, and the parties agree, that this covenant shall be binding upon, and run with, the ownership of the land which it burdens. 18 . Subdivision Map Indemni tV. Kaufman Broad agrees that, on the condition that Chula vista shall promptly notify Kaufman Broad of any claim, action, or proceeding and on the further condition that Chula Vista cooperates in the defense, Kaufman Broad shall defend, indemnify, and hold harmless Chula Vista, and its agents, officers, and employees, from any claim, action, or proceeding against Chula vista, or its agents, officers, or employees, to attack, set aside, void or annul any approval by Chula vista, including approvals by its Planning Commission, city Council, or any approval by its agents, officers, or employees with regard to this subdivision. 19. Notices. Unless otherwise provided in this agreement or by law, any and all notices required or permitted by this agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, which three (3) business days have elapsed following deposit in the U.S. Mail, certified or registered mail, return receipt requested, first-class postage prepaid, addressed 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: Engineering Department 6 ) j/J --? The EastLake Company, LLC 900 Lane Avenue, Suite 100 Chu1a vista, CA 91914 Kaufman and Broad Coastal, Inc. 12235 El Camino Real, Suite 100 San Diego, CA 92130 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. 20. 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. 21. Entire Aqreement. This agreement contains the entire agreement between the parties regarding the subject matter hereof, any prior oral or written presentations, agreements, understanding, and/or statement shall be of no force and effect. 22. Preparation of Aqreement. No inference, presumption shall be drawn from the fact that a attorney prepared and/or drafted this agreement. conclusively presumed that both parties participated preparation and/or drafting this agreement. assumption or party or his It shall be equally in the 23. Recitals: Exhibits. Any recitals set forth above and exhibits attached hereto are incorporated by reference into this agreement. (NEXT PAGE IS SIGNATURE PAGE) 7 /3/J /6 Restatement of Subdivision Improvement Agreement For EastLake South Greens, unit 16 IN WITNESS agreement to be forth. WHEREOF, the parties hereto have caused this executed the day and year first hereinabove set THE CITY OF CHULA VISTA THE EASTLAKE COMPANY, LLC, a California limited liability company Mayor By:* Please see attached New signature page Its: Attest: KAUFMAN AND BROAD COASTAL, INC., a California corporation By: City Clerk Its: Approved as to form ./? . 0)1/L c ~~_ c~~rney (ATTACH NOTARY ACKNOWLEDGEMENT) H:\Home\Attorney\Agree\EastLake.l 8 /3// -] New EastLake Signature Block TIfE EASTLAKE COMPANY, LLC By: By: J3~-/O CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 State of County of California San Diego On March 3, 1999 DATE before me, Silvana C. Brazell, notary public NAME, TITl.E OF OFFICER - E.G.. ~ JANE DOE. NOTARY PUBUC" personally appeared A. James Moxham and William T. Ostrem NAME(S) OF SIGNER(S) [] personally known to me - OR - 0 'I*6veel-to-me~A-the-basis-ef-satisfaetety-evideflee to be the person(s) whose name(s) -is/are subscribed to the within instrument and ac- knowledged to me that-RefsI:Ie/they executed the same in 4l-isIfl€r/their authorized capacity(ies), and that by 4l-i6I-he-Fltheir signature(s) on the instrument the person(s). or the entity upon behalf of which the person(s) acted, executed the instrument. 1@.:SILVANAC'1lRAZEl.I. I u I _COMM.jJ1169721 n en 6 ....TARl'~ln U SAN DIEGO COUNTY g J . My Coo,.,...... ExP.. ( - FEBRUARY 12, 2002 WITNESS my hand and official seal. kua~ C, /27acF-L SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document end could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER o INDIVIDUAL o CORPORATE OFFICER DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT 1TTlE(S) o PARTNER(S) o L1MrrED o GENERAL NUMBER OF PAGES o ATTORNEY-IN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTI1Y(1ES) SIGNER(S) OTHER THAN NAMED ABOVE C1993 NATIONAL NOTARY ASSOCIATION. 8236 Remmet Ave., P.O. Box 7184. Canoga Par\(. CA 91309-7184 O/J . / / CALIFORNIA ALL.PURPOSE ACKNOWLEDGMENT _ '.-=' _',:/'~: ::'''-::('''::-';.:~r,: .-:~).:;{:.~A:~-cf:...,.c-:'::c:-_';:;;:~'X~~"::3C,rt ~,,"::c.~e-.::-::',,:,": -C".t::-c,{: -c.{':C'.~-C<:"'<< c~.:' .:",~ :c: ,::",:~>:c.-:::,:_.::~" ': _ Slale of t;;./rll7Itl ~ t '7- , xiI 7 (,",;;1 ,:; /7 /q1 DollC ot Ol1lcer le g., Jane Doe. NOlary PublIC) County of before me, On Name and rl1 ( personalty appeared ) Nama(s} or Slgner(s) "personally known to me - OR - = proved to me on the basis of satisfactory eVidence to be the person(s) ('" whose name(s) is/;ue subscribed to the within instrument and acknowledged to me that fleIshe/lIley executed the same in.flis/her/ll1eir authorized capacity(ies), and that by -Ris/her/tAllir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ) EI^ JUDY B. ^COLE ' () . Comm.#1147838 i: CJ.. : NOTARY PUBLIC. CAUFORNIAG)) 5 SAN DIEGO COUNTY l -j .. , Comm. Exp.July21. 2001 """ ~y-......------....._.....,..........."" WITNESS my hand and official seal. 7&; C\V~~ . }g"'~11rel Notary ubllC OPTIONAL Though the information below is not required by Jaw, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document, Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: Individual - Corporate Officer Title(s): Partner - .:: Limited l::: General [j Attorney-In-Fact ,. Trustee ., Guardian or Conservator [J Other: Top at thumb here Individual lJ Corporate Officer Title(s): Partner - ,:.: Limited ':.: General o Attorney-in-Fact " Trustee :::J Guardian or Conservator i' Other: Top at thumb here Signer Is Representing: Signer Is Representing: , . - - - , - " -- ~.- '-'.' - .'- - . - . . . - - . - ,'- v'-'-, '-v"-,/- -,'._-, '-'/- ~ '-y'- - - - - - - -.- . . - ,.- - - ' .-.--..... '-v --" '-v ,_,/~,/~,~ ~~'v '-v "--v'-"... '-v '_,_'_ '''- '_'. '-~~ L-v '---/- '_ " "" ""'00.1 "o"~ A"oc""oo. 8236 R.mm.' A,.. PO Bo. "". C,oog' PO". CA "iJ'd} ..2 PrO(]. No 5907 Reor~er: Call Toll-Free 1.800,676.6827 " ,-; , ~ <'). :~: ;~ ) ? 3 l), .~ 0, " <) t, , " / ,~ '~, , ,r .^ ., " " " ~ " ;> <') -; /', , -~, -'./ EXHIBIT 'f.' Propert). Description THE LAND REFERRED TO HEREIN IS SIThA TED IN THE STATE OF CALlFORNIIA. COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: LOT 4 OF CHULA VISTA TRACT NO. 88-3A EASTLAKE SOIUTH GREENS, PHASE 2 & 3. IN THE DlTY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO 13292, FILED IN THE OFFICE OF THE COUNTY RECORDER OFF SAN DIEGO COUNTY, JANUARY 25, 1996. ) J/J --- J) - .-:2 '\ ,I exHibiT A RESOLUTION NO. ) 9 J 9 'I RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING RESTATEMENT OF SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY EASTLAKE SOUTH GREENS, UNIT 10 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Kaufman and Broad Coastal, Inc. is the Guest Builder for Eastlake Greens unit 10 and is requesting a restatement of the original Subdivision Improvement Agreement in order to substitute their bonds for those of the original owners; and WHEREAS, as provided for in a Subdivision Improvement Agreement, a guest builder can be assigned specific portions of the obligations identified by the Agreement. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby approve the Restatement of Subdivision Improvement Agreement for the completion of Improvements required by Eastlake South Greens, unit 10, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized to execute said Agreement on behalf of the City of Chula vista. Presented by Approved as to form by John P. Lippitt, Director of Public Works I~C~~ Jo . Kaheny, City Attorney H:\home\attorney\reso\restate.sia J 3!3 ~ / - - . ~ !"'_~:::-:1:..n; ?-E::rJestea --~. '--__" CLERK W~== Reco=~=j, Mail ~~. c=~" OF ChLl~_ VISTA 2~= ?ourth Avenue Ct~:a Vista, CA 91910 [Z: This doc~ment benefits Permit~ee. Reco=ding fee !:"eqt.:.:..=ed. P..escaternen:: of Subdivision Improvemen~ Aq!:"eernent For East.Lake South Greens, Unit ~c This Ag~eement made this ,ac ~o~ ~~e pu~oses c:: ::-ererence only, and erfec'Cive as of :~e date ~a5:: exe::uted, is between ::he City of Chula Vista ('TCity'!) I a cha=te!:"e~ muriciual co=uoration or the State of Califoy~ia, and The EastL~ke Company, LLC ("EastLakel!), a California limited liability compa::y, an~ Kaufman and 3!:"oad Coastal, Inc., ("Kaufman 3roadl1) I _ Ca::..fornia c~rporatio~1 and is made ~it.h reference to :he =ollo~i~~ 1:a:::s: I. Recitals A. The property which is the subject matter of ~his agreement is legally described as that property in the State o~ California, County of San Diego, as set forth at Map No. 13580 recorded in the San Diego County Recorder's Office on June 9, 1998, and consisting of approximately 34.28 acres (.Prope~~y.1 and as mo~e particularly desc~ibed on Ey~ibit A here~c; and B. On May 26, 1998, City entered into an agreement Tv.":'''::: Eas=~ake entitled: lISubdivision Improvement Agreemen:", cia-:ed Mav 26, 1998 adopted ~ursuant to Resolution No. 19011, and ~eco~6ed in- ~he Coun~y - Reco-rder' s Office as Document No. 98-07188~~ ( .. As::.-eemen:: II} , by which EastLake agreed to make cer!:a:..:: inf~astruc~u~e improvements ~o all the prope~ty known as EastLake Sou~h Greens, Unit No. 10, consisting of approximately 34.28 acres, ; n-' 'udl' ng -ho D~Opo~T"" ana' ~.,-_ 1.-..._ __ _'-_~::; C. :'~e .!igreement 'v-las recorded agains: title :.,:) all Eas:~ake Sou:h Greens Unit. 10; and D. ~as::~ake desi::.-es to sell Propert}r to Kaufman B::-oad and assign most or: EastLake' s duties as to the P=oper:~,l t:.nder =~e Ag::.-eement. ::0 Kaufman 3road, ::0 be released from ar..y furcher ob~':gatio~ thereunder as to the Property, and Kaufman 3road desi::.-es to assume all of East.Lake's duties. as to the Propercy un6e!:" /JD<'c2 ::-.e !.qrepmc"""- C.).Co......- -s"'r- -,-So-T-}..c'.... mOTI"mc,..,..--.:on,......... .--;:J~""",-'C' .--__ ~ _..__, _. _:;:'_ =. \,..-.,.)':"'c:. I...-.l:::'"-_::> ..... ........_:<.l....L. '-"____-:;:......____..____ sc.- =or~h he~=in and :0 p~ovide yeplacement ~8nds as :8 ~~e dut~~s t~~: Kaufma~ 3road ~5surnes under the Agreement; and E. Kaufman B=oad is willing :0 enter into this ResLateme~: 0:: :.he Agreement. ': "Restat.ement ") wherei.n ..; ~ is p::-ovided :.::.a: Ka;;.::man Br:oae will =-:1stall and comDlete, at Kaufman 3r:oad's 0',::: expense I al:' t.he ::emaining public" improvement wor}: v.'i ::r_i:1 :::e Property bO~ldaries ~egui=ed by City in connectio:J. with :~e st:..::Jdivision and Wl.L..:. deliver ':.0 city impro-\'~ement sect:.:::-i::.es __ approved by :~e City Attorney; and F. hs :0 the ?roperty, this Rest.atemen: an~ rest.ate for Kaufman Broad the Acrreement, :ce::::ording p:c=-ority as the Agreement;- and ~s intende~ ~c amen~ and assume ~he same G. A ~entative map of said subdivision has heretsfc~e ~ee~ ap~=oved, subject :'0 certain :.-eguirements and COnQl~l8~S, ~s co~-:ained ':":J. Eesolu:ion No. 15200, approved on the l8th ciav ~- Ju~v, 1989 a:1d Resolut:ion N:o. 18888, approved 0:1 the :O::h :lav -- Fet<:-uary, 1998 (lITentat.ive Map Resolutions"); and H. Com~lete Dlans and sDecificat:ions ::or the const::cuct:=-on, =-:1s::allatio:1 ~nd comDletion of said nublic imnrovement: work ~ave been prepared and sUbmitted to the - City Engineer, as shown :on Drawings Nos. 98-28 through 98-15 inclusive, on file in the off=-ce of =he City Engineer; and I. Kaufman Broad is willing to improvements shown on said drawings; and complete all pubHc J. An estimate of the cost of constructing sa=-d pubL.c improvements according t:o said plans and specificat:ions was s~mitted and approved by the City in the amoun: of Two Million six Hu~~=ed Fif~y-Two T~ousand ~wo Hundred ~ollars and No Cen:s ($2,652,200.00) . NOW, TF-EREFORE, IT IS MUTUALLY UNDERSTOOD AND AGREED ::.S FOLLOWS: 1. Im~rovement: Work. Kaufman Broad, ::or i tsel:: and i::s suc:essors in interes~, an oblicration the burden of wn~cn encumbers ane :cuns with the land, agree; to comply with all of =he ::erms, con~itions and requi=ements of the Agreement except as set forth i~ na:::.-aoranh 2 below; :0 do and nerform 0:'- cause to })e d.one and ;e~:;rmed, as its own exoense, "lthout cost to City, in a oood and ~o::-}:manlike manner, undei:- the di:::-ection a:1d to -che ~atisfaction a.nd app::-aval of :'~e City Engineer, all of the public improvement and/e::- land development work required to be done in said subdivision (11 :mprovemen:: Work "); and will furnish the :lecessar-y materia2.s the=efo=, all in strict conformi-ev and in acccrdance wiL.h :.he Dlans and specifications, which documents have here:.ofore been filed i:l 2 /3/J ~} -..... ::ffics: -he. \......~- ~ ~ ~-_y. ........ "'ice.""" ___ =d;=-~____ and ~y ::-~is :::-e:erence ~=-~ ~~=~~?ora~e~ ~erein ~~j made 2 part hereof. 2. MDnuments. EastLake expressly understands and agrees tLa: al: monumen:s have been or ~:ll be installed by EastLake wit;':::! tr.:r:v (30) days after the sompletion and acceptanse of t:;e Im?=ovement work, and that EastLake has installed or will inst~:~ temporary st=eet name signs if permanent street name signs have n~: bee::! installed. 3. Time for Pe~=ormance. Except as set :orth in paragraph 2 abc-:e I it is express2-::." unders:'Dod and agreed that Kaufman Broad ~~-- =ause all necessary mate~ials to be furnished and _~~ Im~r~vement Work reauired under :he Drovisions of this RestatemeTI: to :':>e done on Dr before the second anniversary date of CDunc:..~ ap~r~val of the Agreement. 4. Certificate of Clearance. It is understoDd and agreed tha: Kaufman Broad iTI Dlace and stead of EastLake, exceDt as set forth in paragraph 2 above, will perform said Improvement Work as set forth in the Agreement, Dr that portion of said ImprovemeTIt Work serving any buildings Dr strustures ready for oscupancy in sai:. subdivision, prior to the issuance of any sertificate -- clearanse for utility connections for said buildings or structures in said subdivision, and such certificate shall not be issued until the City Engineer has sertified in writing the completion of said public improvements Dr the portion thereof serving said building Dr structures approved by the City. 5. Obey All Laws. It is expressly understood and agreed by Kaufman Broad and EastLake that, in the performance of said Improvement Work and monumentation, Kaufman Broad and EastLake will corrform to and abide bv all of the Drovisions of the ordinances of the City of Chula Vis~a, and :he laws of the State of Califorrria app:icable t~ said wo~k. 6. Fai:.hful Performance Securitv. Kaufman Broad furthe= 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 One Million Three Hunc.red Twenty-Six Thousand One Hundred Dollars and No Cents 1$1,326,100.00) which securitv shall guarantee the faithful performance of this Restatemen~ by Kaufman Broad and is attached he=e:o, marked Exhibi: "3" and made a part hereof. 7. ~abor and rt.aterials Secu~itv. Kaufman Broad further agrees to furnish and deliver :~ the City of Chula Vista sim~ltaneously with the execution of this agreement, an approved imD~ovement security from a sufficient surety, whose sufficiencv ha~ been aDDyoyed by the Citv in the sum o-f One Million Three HUTI:.red Twenty-Six -Thousand One Hundred Dollars and No Cents 3 )3J]~1( (,. '26 '-r --I ~o c"'~"rc ~he ~-ym"''''' - '-. ::._,..: I J...'J...... ..n) ..... -'______ l..... ,:-'0. _h.... or rr,ate:rlal '::'::10. ":"a..nc!" co~~estion w~=h the ~~s=allation of said public improvements, W2~=~ se=~~ity is attached hereto, marked Exhibit "C" and made a pa== he:::-eoI. 8. Release of EastLake. city agrees that immediate::"; ::o__owing execution of this Agreement by the Mayor of the City o~ Ch\.'.la Vista, City will release those faithful performance 0.:1::' material and labor securities posted by EastLake in cor~~ection W~t:. the: Agreemen:.. 9. ReJ..ease UDDD Comnletion of Work. It is furthey ag:.-ee= tho.:: - - the :::mDrovement Work is not comDleted within the c:..me agreed herein, the sums provided by said improvement securities may be used by City for the completion of the Improvement Work with:..n said subdivision in accordance with such sDecifications herei::. cO:J.:.ained or referred, or at the option o+-f the City, as a::-e approved by the City Council at the time of engaging the work to be pe=fo=med. 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 Kaufman Broad as to Improvement Work and EastLake as to the monumentation described in paragraph 2 or their successors in interest, pursuant to the terms of the improvement security. Should Kaufman Broad fail to perform its obligation and the City' completes work, Kaufman Broad agrees to pay to the City any difference between the total costs incurred by the City to perform the Improvement Work, including design and administration of construction (including a reasonable allocation of overhead), and any proceeds from the improvement security. EastLake agrees to pay to the City any difference between the total costs incurred to perform the installation of monumentation, including design a:1d adrr2:1istration of construction (including a reasonable allocation of =~erhead) I and any proceeds from the improvement security shou~= City be required to complete such work. 10. No Cost to Citv. 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 anv officers, their sureties or bondsmen, be liable for the payment' of any sum or sums for said work or any materials fu=~ished therefor, except to the limits established by the app~~ved improvement security in accordance with the =equi~eme~=s of =he Sta~e Subdivision Map Act and the p~ovisions of Title 18 8= ~he Chula Vista Municipal Code. - 11. Denosit of Costs. It is further understood and aGreed ~v Kaufman Broad that any engineering costs (including plan checkinq~ insnection, materials furnished and other incidental exnenses) inc~rred by Ci~y in connection with the approval of the Improveme~t 4 J3!3~S- i,J::-}: plans 2.nd :ns:c..llatior: ~: :::mproverner:: Work 2e:!."'e:iri..a1Jo-Je ::~::-\tided f::::-, and the cost of st.::-ee:. sions and s~::-ee:. ':::-ees c.;:; :.h.-......"..;,..-ed n' y ........:.....y -no- -PD~D"~d n- ~,. 7he.. '-''':-:-y -;:ng'n~~~ suo -~"": n- ~ pa'a- -~-. --............-- .....-... etA 0. .... \I...... "'......... \........... ....... .... ___ .Lco,_.... ...... ........Jv Kaufman BrDad, and that Kaufman BrDad shall depDsit, prior t; re~DrdatiDn of the Final Map, with City a sum Df mDney sufficient to 20ver said cost. 12_ Maintenance ResPDnsibilitv, It is understDDd and agreed that until such time as all ImprDvement WDrk is fully ~Dmpleted and a~cepted by City, Kaufman BrDad will be respDnsible for the care, maintenance ~=, and any damage to, che streets, alleysl easements, water and sewer lines within the DrDPDsed subdi visiDn, It is f~rther understDDd and agreed that Kaufman Broad shall guarantee all Dublic imDrovements within the Proper:v for a period of Dne year-from date of final accep:ance and correct any and all defects or deficiencies arising during said period as a result of the acts Dr omission of Kaufman Broad, their agents Dr employees in the performance Df this Restatement, and the Agreement, and that upon acceptance of the work by City, Kaufman Broad shall grant to City, by appropriate conveyance, the public imprDvements constructed pursuant to this agreement; provided, however, that said acceptance shall not constitute a waiver of defects by City as set forth hereinabove, 13. Hold Harmless. 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 EastLake or Kaufman Broad, their agents or employees, or indemnitee, related to this agreement. Kaufman Broad further agrees to protect and hold the City, its officers and emplDyees, harmless from any and all claims, demands, causes of action, liability or loss Df any sDrt, because of or arising out of acts or omissions of Kaufman Broad, their agents or employees, or indemnitee, related to this agreement or the Original Agreements; provided, however, that the approved improvement securitv shall not be required to cover the prDvis ions - Df this paragra"ph. Such indemnificatiDn and agreement to hold harmless shall extend to damages to adj acent or downstream properties Dr the taking 0: property frDm owners Df such adjacent or downstream properties as a result Df the construction of said subdivision and the public improvements as provided herein. It shall also extend to damaaes 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 Df discharge as the result of the cDnstructiDn and maintenance of drainage systems. The apprDval 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 apprDval, be an insurer Dr surety for the construction of the subdivision pursuant to said approved improvement plans. The provisions Df this paragraph shall become effective upon the execution of this agreement and shall /315---t ~=~al~ ~n -.. , rOI2= ~~~ e!:~ct :0: ten (:0) years :cllowing :~~ a::eptance :::~~ :.he C':"-::V. :JI ::he improvements. 14. Indemnifi~2~ion. Kaufman Broad agrees ~o defen6, i~6emnify, and hold ha=mless :.he City or its agents, officers, a~d employees f~om any ~laim, action, or proceeding against the City o~ i~s agents, officers, or employees to attack, set aside, void, or ar~,ul, an approval of the City, advisory agency, appeal board, or legislative body ~oncerning a subdivision including this Res~atement, which a~tion is brought within the time period p::-:)vided fer in SeC:::":):rl 66499.37 of the Government: Code of the S~a=e of California. 15. Orioinal spe~ifically agrees Agreement except as Aoreement. Additionally, Kaufman ~o comply with all terms contained set forth in paragraph 2 above. Broad in t::J.e 16. Aqreement Bindino UDon Successors. be binding upon and inure to the benefit assigns, and interest of the Darties as to Property until released by the mutual consent This agreement shall of the successors, any or all of the of the parties. 17. Aqreement Runs With The Land. The burden of ~he covenants contained in this agreement ("burden") is for the benefi~ of the land owned by the City adjacent to the Property. The burden touches and concerns the Property. It is the intent of the parties, and the parties agree, that this covenant shall be binding upon, and run with, the ownership of the land which it burdens. 18. Subdivision MaD Indemnitv. Kaufman Broad agrees that, on the condition that Chula Vista shall promptly notify Kaufman Broad of any claim, action, or proceeding and on the further condition that Chula Vista COODerates in the defense, Kaufman Broad shall defend, indemnify, and hold harmless Chula Vista, and its agents, offi:::ers, and employees, from any claim, action, or proceeding against Chula Vista, or its agents, officers, or employees, to attack, set aside, void or annul any approval by Chula Vista, in:::luding approvals by its Planning Commission, City Council, or any approval by its agents, officers, or employees with regard to this subdivision. 19. Notices. Unless otherwise provided in this agreement or by law, any and all notices required or permitted by this agreemen~ or by law to be served on or delivered to either party shall be in wri~ing and shall be deemed duly served, delivered, and receive6 when persona::y delivered to th; parry to whom it is directed, or in lieu thereof, which three (3) business days have elapsed following deposit in the U.S. Mail, certified or registered mail, re~urn 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. 6 JJ!J~ ? C.:.t.\~ ~: Ch:.:.:"a -\.i::..sta 276 Fou~=h ~~enue Chul~ Vis~~, CA 91510 Att~: Engineering DeparLmen: East-Lake 900 Lane Avenue, Suite 100 Chula Vista, CA 91914 Kaufman and Broad Coastal, =nc. 12235 El Camino Real, Suite :00 San ~iego, CA 92130 A parc:y may change such address for c:he purpose of this pa:::agraph by giving written notice of such change "Co the other pa~=y in ~he manner provided in this paragraph. 20. CaD"Cions. Captions in this agreement are inserted for co~venience of reference and do not define, describe or limit the scope or in"Cent of this ag:::eement or any of its terms. 21. Entire Aoreement. This agreement contains the enti:::e ag:::eement bec:ween the parties regarding the subject matter hereof, any prior oral or written presentations, agreements, understanding, and/or statement shall be of no force and effect. 22. Prenaration of Aoreement. No inference, presumption shall be drawn from the fact that a attorney prepared and/or drafted this agreement. conclusively presumed that both parties participated preparation and/or drafting this agreement. assumption or party or his It shall be equally in the 23. Recitals: Exhibits. A11Y recitals set forth above and eYL~bits at~ached hereto are ~ncorporaLed by ~eference into this agreement. (NEXT PAGE =S SIGNATURE PAGE) 8 J3D-~ ?~es:c..:emen: :,: Su~divis~~~ Improvemen~ h~=eemen~ :8r EastL~~= Sou=h Greens, Unit ~o IN WITh""ESS agreement to be fc::-:.h. WHE?.EOF, the parties hereto have caused ttis executed the day and year first hereinabove se: TEE CITY OF CHULA VISTA THE EASTLF~ COMP~~, LLC, a California limited liability company By: * Please see attached New Signature Pag. Mayor Its: At"cest: K.liUFM.l\N AND BROAD COASTAL, INC., a California rporation Ci:y Clerk By: Its: Approved as to form & ~flC~ C~ o=ey (~_TTACH NOTARY ACKNOWLEDGEMENT) u ,:;::;::-,~ ,A::::o:-:ley ,A:,::=ee \i::" :c 9 /3/J-; New EastLake Signature Block THE EASTLAKE COMPANY, LLC By: ~L By: oxham, Vice President , William T. Ostrem, Nice President /31]-/0 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT NO. 5907 State of County of California San Diego On March 3, 1999 DATE before me, Silvana C. Brazell, notarv public NAME. TITLE OF OFFICER - E.G., "JANE DOE. NOTARY PUBLIC" personally appeared A. James Moxham and William T. Ostrem NAME(S) OF SIGNEA(5) [] personally known to me - OR - 0 J3f6ve8-l&ffl8~A-#le--basis~f-5atisfaetefy-eviGeflee to be the person(s) whose name(s) -is/are subscribed to the within instrument and ac- knowledged to me that-RefsHe/they executed the same in -ft~r/their authorized capacity(ies), and that by -R-H;ffie.Fltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I @ .......1lRA2EU. I "u ..,goMM. .1169721 n _.Mr~tIl fl SAN DIEGO COUNTY ~ . Commission Expin>s I. ~BRUARY 12. 2002 I WITNESS my hand and official seal. ..0/ d(/tLMN C~ t31a~ SIGNATURE OF NOTAR OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER o INDIVIDUAL o CORPORATE OFFICER DESCRIPTlDN OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT TITLE(S) o PARTNER(S) o LIMITED o GENERAL NUMBER OF PAGES o ATTORNEY-iN-FACT o TRUSTEE(S) o GUARDIAN/CONSERVATOR o OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PEASONtS) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTA?1'ij;;....; /236 Aemmet Ave., P.O. Box 7184. Canoga Park. CA 91309.7184 CALiFORNIA ALL.PURPOSE ACKNOWLEDGMENT - ':' '~':;<"~'>:~:::"'-=~.:D';:C....:::...,:~':c:'::,:-;~~~::~~'::~>:~.:~::':(;-::',,~:':..:~,:::;..:~~,::_'>:;' _ ~,:_^~:,;:~:~';:7..,,:<.::' .: .:~,:,:,:':.-.:" -- State of /". . . /l/fJ7//l (".' -) - )/JyJ / // (kV / hi/II I)' a j,jame ana IllIelel unicef leg.JJlle Doe. t~olarv r'Ul.lIlC I ) County of On :? b h9 ~.JIC In/hi before me. . //(/i personally appeared NamelS) ot Slgner(s) ;i personally known to me - OR - ~ proved to me on the basis of satisfactory eVidence to be the person(s) whose name(s) is/a.e subscribed to the within instrument and acknowledged to me that Ae/she/thgy executed the same inhis/her/lI1eir authorized capacity(ies). and that by llis/her/lI1eir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted. executed the instrument. l...... ~ "'" "'- ..... ....... -^ ...... .... ...... - - ~ ~. JUDY B. COLE r () . Comm. #1 147838 !: C) .. NOTARY PUBLIC. CAlII=ORNI...G) ~ SAN DIEGO COUNTY lJ J '" W' Comm. EXP,JuJy21.2001 ..... ..... ~..,. ~............. ~ - ...,....,...., - .........{ WITNESS my hand and official seal. ;;.;; - -, c' /.. I "..1, /') _ f sl7re Of Notary Public OPTIONAL Though the information below is not required by law. it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: Ind1vidual Corporate Officer Title(s): - Partner - = Limited :=: General -.J Attorney-in-Fact - Trustee Guardian or Conservator - Other: Top at lhumD here .. Individual .~ Corporate Officer Title(s): Partner -'= Limited ..= General o Attorney-in-Fact , . Trustee ~ Guardian or Conservator :I Other: Top 01 IhumD here Signer Is Representing: Signer Is Representing: . . . . , - ,-'-~....- - - - . - . --.,-~ .,'-,~._,~'-v'-,--~~'--....'- .'~ _"-'~'--~''-----'''-'--- . ,~'-,'-'~-~--. --.~ ":. 1995 Nahonal Notary "'550<:Ial,on . 8236 Remmel A\le. PO 80. 7184' Canoga ParK. CA 91309-7184/38 _ ,f 2roo, No 5907 ReorOer- Call Toll.Free 1-800-876.6827 , \ \!, <) t) , ',' \ S 8 " " ~ '), ?, , ~ .>! '~. o :3 .. .' .' EXHIBIT "1," Property Description TIlE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFOR.NIIA. COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 2 OF PARCEL MAPNO. 17644, IN TIlE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN TIlE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO. JANUARY 26.1996 AS FILE NO. 1996-0041318 OF OFFICIAL RECORDS. J}!l-lj / .' E:xHlf?:./1 A ,,/ RESOLUTION NO. / 939-.5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING RESTATEMENT OF SUBDIVISION IMPROVEMENT AGREEMENT FOR THE COMPLETION OF IMPROVEMENTS REQUIRED BY BALDWIN COMPANIES, NEIGHBORHOOD 3, UNIT 7 AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, Kaufman and Broad Coastal, Inc. is the Guest Builder for Telegraph Canyon Estates, Neighborhood 3, Unit 7 and is requesting a restatement of the original Subdivision Improvement Agreement in order to substitute their bonds for those of the original owners; and WHEREAS, as provided for in a Subdivision Improvement Agreement, a guest builder can be assigned specific portions of the obligations identified by the Agreement. NOW, THEREFORE, BE IT RESOLVED the city Council of the city of Chula vista does hereby approve the Restatement of Subdivision Improvement Agreement for the completion of Improvements required by Telegraph Canyon Estates, Neighborhood 3, unit 7, a copy of which shall be kept on file in the office of the city Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized to execute said Agreement on behalf of the City of Chula vista. Presented by Approved as to form by tk~51r\:::w~~ Joh. '. Kaheny, city ttorney John P. Lippitt, Director of Public Works H:\home\attorney\reso\restate.sia )}L~/ " ;;c.............~~nc :'c.-'-CS+-~":; .....-~. ..,__...._......... ....I ,l.._~..L'- 1.,.......... -,'-. c: -::-: CLERK W~=~ ~eco~o=~, Mai~ -~. r~-~ OF CHU~_ VISTh 27S ?ourth F~enue Ch~:a Vista, CA 91910 [x: chis do~~ment benefits ?ermi~te=. Rec8~~ing :ee rea:.:.:.::-ed. Resratemenr. of Subdivision Improvement h3reeme~~ For Telegraph Canyon Estates, Neighborhood 3, Unit 7 y'r ,j /i q :'his ]...~=eement made this 'lai-.>1--- A 1.99......L for =he ;:n.:.=;>:;ses a:: :.-eference only, and effective as of the date last exe::'J.:.ed, lS ~etween :.he Citv of Chula Vista ("CitvI1) I a chartered. rn~~~=ipal c8=poratio~ of the.State of California, and l~ Homes One, ':'J.~~. I a :)e:'aware ::o::-poration (11NM:.-:") I and Kau::ma:: and Braa::. CO=..5:"2..1, In::. I a Ca2.:.fornia co:.-pora:ion (I! Kaufman B::-::.ad II) and :"5 ffia~~ ~it~ :.-e::erence :.:; the following facts: I. Recita:2.s A. The prope~=y which is the subject mat~er or th~s as~eement ~s ~egally described as that property In the State a: Ca~~=ornia, :ounty 0: San Diego, as set rorth at Map No. 13242 ::-e::::::.-ded :"::1 the San Diego County Recorder I s Office CD. September 20, 1998, and cons~st~ng of approximately 5,041 acres (" ?~operty") and more pa~ticularly described on Exhib~t A hereto; ane. 3. Or. August 15, 1995, City entered into an agreement with Ba:"::'v:i:l Blli:ders en~i :.led: 11 Subdivision Impr.-ovement Ag::-eement. I' / dated Aug~st :5, 1995 adopted pursuant to Resolution No, 18000, and recc~ded in t2e Countv Recorder's Office as Document No. 95-0378779 ("Agreement"), by we-ich 3aldw~n' Builders agreed to make certain in:rastruct~~e improvements to all the property known as Telegraph Ca::Y:Jn Estates, NeighboYhood 3, unit 7, consisting or approximately 5.C~: acres, ~ncludin9 the Property; and ':'e::",=;::.-aph ""--,=. Agreement Ca::.yon Es~a::es, was ::.-ecorded agains~ title Neighborhood 3, Unit 7; and to all v_ :'. St.:bsequent:.o execution and delivery of the Agreemen':, Ba:::~~n 3~il6ers commenced a Chapter 11 reorganization case in the u~~:.ej Sta:.es Bank~ptcy Cour:: for the Central District 0: Ca~~:o~nia. Pursuant to the Fourth Amended Joint Plan 0: Eeo::-ganizat.ion of Baldll.,iin Building Contractors (the IlJoint PlanlT) , 1 ) 3c - cA a::'::' ::;: the assets 0: Baldwin Builde:::s we:::e t:::ansferrej to 3a::'::,::..~. B~~:~ing CG~tracto~s, a Califoynia limited partne~ship, w~:~~ th,=:::-=:upon m=::-ged v.''::'':'n and into New Millennium Homes, LLC, _ D::"~ware limited liability company. Upon conformation of the Js~~s Pla~, New Millennium Homes, LLC, in its capacity as the Reorgan:::::] De~:or under the Joint Plan, assumed various executory contrac:s, including the Agreement, pursuant to section 365 of the Bankru~::~' Cod:. Following consummation of the Joint Plan, New Millenni~~ Horn:s, LLC delegated its rights, duties and obligations under :~e Agreement to its wholly-owned subsidiary, NM Homes One, Inc.. ~ D=:"a.w~are corporation, which acquired the Property Vu Se~:ernber 4, 1997. As a result of such assignment and delegaL::n, NY. ::omes One, Inc., lS presently obligated as the "Subdi vi:i:r" un~=r Lhe Agreement. ~. NMB has sold the Property to Kaufman Broad and wish:s :: ass:gn NM::8' s duties as to the Property under the AgreemeI!: Ka~=man Broad, to be released from any further Dbliga~~~~ thereunder as to the Property, and Kaufman Broad desires to ass~me all of NMH's duties as to the Property under the Agreement, an: :: pr:>-,ide replacement bonds as to the duties that Kaufman 3r::,,,::] ass~rnes under the Agreement; and ~ . Kaufman Broad is willing to enter in~o this Restatem==~ 0: -:he Agreement ('!Restatement II) wherein it is provided _u__ Ka~fman Broad will install and complete, at Kaufman Broad's o,~ expense, all the remaining public improvement work and monumen:s wiLhin the Property boundaries required by City in connection ~::~ the subdivision and will deliver to City improvement securi~ies ~s appr:>ved by the City Attorney; and G. As to the Property, this Restatement is intended to am:~: and restate for Kaufman Broad the Agreement, and assume the s~~~ ree:>~ding p~iority as the Agreement; and H. A tentative map of said subdivision has heretofore bee~ approved, subject to certain requirements and conditions, "S con::ained in Resolution No. 16960, approved on the 19th day -- January, 1993 ("Tentative Map Resolution"); and I. Complete plans and specifications for the constructio~, ins::allation and completion of said public improvement fer Neighborhood 3, Unit 7 work have been prepared and submitted to :je Ci::y Engineer, as shown amongst other improvements not ~elated :0 Neighborhood ~, Unit 7 on Drawings Nos. 94-20 th~ough 9~-C~ inc:usive, on file in the office of the City Engineer; and J. Kaufman Broad is willing to complete all out::c impr:>vemenLs shown on said drawings; and K. An imp::-ovements estimate of the cost of according to said plans constructing said PUD.:.:'C and specifications w~s 2 /3C-j suj~itted a~~ approved by the City ~~ the amount of one hund~e~ fif":y-nine -:~8usand o~e hundred fi:::.y-two dollars and no cen~s ($159,152.00; . NOW, T?EREFORE, IT IS MUTuALLY UNDERSTOOD AND AGREED J-.S FOLLOWS: 1. Improvement Work. Kaufman Broad, for itself and i:s successors in interest, an obligation the burden of which encumbers and runs wi:h the land, agrees to comply with all of the terms, conditions and requirements of the Agreement including as set for:h in paragraph 2 below; to do and perform or cause to be done and performed, as its o~~ expense, without cost to City, in a good and workmanlike manner, under the direction and to the satisfaction and approval of :he City Engineer, all of the public improvement and/or land development work required to be done in said subdivision as well as the monument at ion described in paragraph 2 below (" Improvement Work"); and will fu=ish 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 by this reference are incorporated herein and made a part hereof. 2. Monuments. Kaufman Broad expressly understands and agrees tha: all monuments have been or will be installed by Kaufman Broad within thirty (30) days after the completion and acceptance of the Improvement Work, and that Kaufman Broad has installed or will install temporary street name signs if permanent street name signs have not been installed. 3. Time for Performance. It is expressly understood and agreed that Kaufman Broad will cause all necessary materials to be fu=ished and all Improvement Work required under the provisions of this Restatement to be done or before the first anniversary date of Council approval of this Restatement. 4. Certificate of Clearance. It is understood and agreed that Kaufman Broad in place and stead of Baldwin Builders, will perform said Improvement Work as set forth in the Agreement, 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. 5. Obev All Laws. It is ex~ressly understood and agreed by Kaufman Broad that, in the performance of said Improvement Work and monument at ion , Kaufman Broad will conform to and abide by all of 3 JJc-i the provls1o~S of the ordinances of the City of Chula Vista, anJ th~ laws of ~h~ Stat~ of California applicabl~ to said work. 6. Fait.hful Pe=formance Securitv. Kaufman Byoad furth-:::::- agrees to furnish and deliver to the City of Chula Vista, simultaneously with the execution of this agreement, an approv~d improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of seventy-nine thousand five hundred seventy-six dollars and no cents ($79,576.00) which security shall guarantee the faithful performance of this Restatement by Kaufman Broad and is attached hereto, marked Exhibi~ "B" and made a part he::-eof. 7. La;::,or and Materials Securitv. Kaufman Broad further agrees to furnish and deliver to the City of Chula vis~a 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 seventy-nine thousand five hundred seventy-six dollars and no cents ($79,576.00) to secure the payment of material and labor in connection with ~he installation of said public improvements, which security ~s attached here::o, marked Exhibit "C" and made a part hereof. 8. Monument Bond. Kaufman Broad further agrees to furnish and deliver ~o the ci::y of Chula Vista, simultaneously with ::he execution of ~his agreement, an approved improvement security from a sufficient surety, whose sufficiency has been approved by the City in the sum of Two Thousand Five Hundred Dollars and No Cents ($2,500.00) ::0 secure the installation of monuments, which security is attached hereto, marked Exhibit "D" and made a part hereof. 9. Release of Sure tv Bonds. City agrees that immediat~ly following execution of this Agreement by the Mayor of the City of Chula Vista, City will release those faithful performance and material and labor securities posted by Baldwin Builders in connection with the Agreement. 10. Release Upon Completion of Work. 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 the Improvement Work within said subdivision in accordance with such specifications herein com:ained 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 Kaufman Broad or its successors in interest, pursuant to the terms of the improvement security. Kaufman Broad agrees to pay to the City any difference between the total costs incurred to perform the Improvement Work, including design and 4 /]c'-.s- ad~:r.istratiJn of construction (including a reasonaD~e allocaticr. 0: overhead), and any proceeds from the improvement sec~rity sho~~~ Ka~:man Broad fail to meet its obligations under this Restatement. 11. No Cost to City. It is also expressly agreed an:i understood by the parties hereto that in no case will the City 0: Chula Vista, or any department, board or officer thereof, be liatle for any portion of the costs and expenses of the work aforesaid, nor shall any officers, their sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materia~s 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 0: Title 18 0: the Chula Vista Municipal Code. 12. DeDosit of Costs. It is further understood and agreed by Kaufman Broad that any engineering costs (including plan checking, insDection, 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 re~~ired by City and approved by the City Engineer shall be paid by Ka~:man Broad, and that Kaufman Broad shall deposit, prior t:o re:o:ordation 0: the Final Map, with city a sum of money sufficient to cover said cost. 13. Maintenance Responsibility. It is understood and agreed that until such time as all Improvement Work is fully completed and accepted by City, Kaufman Broad 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:.s further understood and agreed that Kaufman Broad shall guarantee all public improvements within the Property for a period of one year from date of final acceptance and correct any and all defects or :ieficiencies arising during said period as a result of the acts or omission of Kaufman Broad, their agents or employees in the performance of this Restatement, and the Agreement, and that upon acceptance of the work by City, Kaufman Broad 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. 14. Hold Harmless. It is understood and agreed that City, as indemnitee, or any officer or employee thereof, shall not be liab:e for any injury to person or property occasioned by reason of the acts or omissions of Kaufman Broad, their agents or employees, or indemni tee, related to this agreement. Kaufman Broad 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 Kaufman Broad, their agents or employees, or 5 J3~ -t inde~~itee, related :~ this agreement or the Jriginal Agreements; pr07ided, however, tha: the approved improvemen: security shall no: be zeguired ~o coveT the pro-visions of this paragraph. Sush indemnification and agreement to hold harmless shall extend :0 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 main:enance of drainage systems. The approval of plans providing for any or all of these conditions shall no: 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. 15. Indemnification. Kaufman Broad 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 including this Restatement, which action is brought within the time period provided for in Section 66499.37 of the Government Code of the State of California. 16. Orioinal specifically agrees Agreement. Aoreement. Additionally, Kaufman to comply with all terms contained Broad . ~. lD L..ne 17. Aoreement Bindino Uoon Successors. be binding upon and inure to the benefit assigns, and interest of the parties as to Property until released by the mutual consent This agreement shall of the successors, any or all of the of the parties. 18. Aoreement Runs with The Land. The burden of the covenants contained in this agreement ("burden") is for the benefit of the land owned by the City adjacent to the Property. The burden touches and concerns the Property. It is the intent of the parties, and the parties agree, that this covenant shall be binding upon, and run with, the ownership of the land which it burdens. 19. Subdivision MaD Indemnity. Kaufman Broad agrees that, on the condition that Chula Vista shall promptly notify Kaufman Broad of any claim, action, or proceeding and on the further condition that Chula Vista coooerates in the defense, Kaufman Broad shall defend, indemnify, and hold harmless Chula Vista, and its agents, 6 ) 3c - ') o::~sers, a:l:1 emp18ytes, rr8m any claim, astian, 0::- p::-oceedinj a9~inst Chu2.a Vista, or its agents, officers, or employees, ~G at:.ack, set aside, 7Did or annul any approval by Chula Vis:.a, including approvals by its Planning Commission, City Council, Dr any approval by its agents, officers, or employees with regard to this subdivision. 20. Notices. Unless otherwise provided in this agreement or by law, any and all notices required or permitted by this agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received whe~ personally delivered to the party to whom it is directed, or in lieu thereof, wt.ich three (3) business days have elapsed fo:lowing deposit in the U.S. Mail, 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: Engineering Department NM Homes One, Inc. c/o New Millennium Homes, LLC 2823 McGaw Irvine, CA 92614 Kaufman and Broad Coastal, Inc. 12235 El Camino Real, Suite 100 San Diego, CA 92130 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. 21. CaDtions. 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. 22. Entire Aqreement. This agreement contains the entire agreement between the parties regarding the subject matter hereof, any prior 0:::-2.2. or v...ritten presentations, agreements, understanding, and/or statement shall be of no force and effect. 23. PreDaration of Aqreement. No inference, DresumDtion shall be drawn from the fact that a ;'ttorney prepared and/or drafted this agreement. conclusively presumed that both parties participated preparation and/or drafting this agreement. assumption or party or his It shall be equally in the 7 /3c-r 24. ?~:itals: Exhibits. Any ~ecitals set fo~~h above and e)~i~its at=ached hereto are incorpoyated by reference into th~s as=eement. (NEXT PAGE IS SIGNATURE PAGE) 8 )jC-i Restatemen: or Subdivision Imp=ovement Agreement For Telegraph Canyon Estates, Neighborhood 3, Unit 7 IN WITNESS WrlEP.EOF, the parties hereto have caused this ag~eement to be executed the day and year first hereinabove set fo~~h. TH~ CITY OF CHULA VISTA NM HOMES ONE, INC., a Delawa~e Corporation By /iP!1~- , Its: -f\("c...~~-? \J\C-Z.. ~r~r0~t Maya= At~est: Ci:y Clerk K.l\.UFM..ZlN AND BR~TAL, INC., a California ~orpor~tion i :~". ;:;,",~( ~:~"'i App~oved as to form ~~c~/ Ci~. torney E \E8::'.e .;,,:. :.o=-ney\h?::'ee ',':'=Es':ate 9 /3c-JO CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of Cali fomi a ) ) SS: ) County of Orange On JWzul A ! '111 ,before me, (~{J,;,L,u. /Jr:~ tl~tak''-/, Date Name and Titw-ofOfficer (e.g~ "Jane Doe, Notary Public")/ personally appeared ~2"1 7? T~l~<~- /i.:%,i;,,;J' ?::(e~ Narne(s) <1Signer(s) J I/? ,(-,! / _~ ':;C-L--4:.{-A'- ~ 00' personally known to me; or , o proved to me on the basis of satisfactory evidence to be the person}sJ whose name,(.s) istare- subscribed to the within instrument and acknowledged to me that he/fh~""'ey executed the same in hisl.her'tileir authorized capacity{}es1, and that by his~iF signatures on the instrument, the persons(s3, or the entity upon behalf of which the persons($) acted, executed the instrument. j ! ~ .' CAROLYN L. LOOS :!i. o co"''''. . 1180399 ~ ~ - .. Notary Public - California 0 =i: ORANGE COUm"Y - ~ My Co~m. Expires APRIL 19, 20021 PLACE NOTARY SEAL ABOVE WITNESS my hand and official seal. /1 ;: . c i ~ (~L~vf7j ~ :~~ / Signature of Notary Public /JC-// /: ;> \ <;, ; ~ r "- <;, <;, ~ ~, r- " / \ r " <;, r " ~ ,- i " /- c " <;, ~ ~ I 2 I ~ ~ l'. ,~ 3 '.< / ;: ~ <;, (> f " <;, (> ~ r i :, (' "- r ", ~ / ^, ,. ~ / \. C'ALlFORNIA ALL.PURPOSE ACKNOWLEDGMENT ,/"'/-'<"~~r<'.('":I""(':/:.t:-('",,""<,r:<'~~^-:<'~J::-:<',,_...,-:.~,,-/:'<:;--:--:-~~-CS:,,f":('):'":('-o-^d~';:/,,--~~:::"':C::.~~~D{:.,:,-::::""~---:-~-'>~::{::..-:{:.Q:>'-:-::::-~~":>::-L-:"::-:~O:{:',c" State of CedI 'bf f..:J i~ OJe\jo ~1\ on~o-q9 wate County of before me, -th.n..- N~~~D" N,,",,!P"'Io,') personally appeared (YInJ\h", L,~h. i&r1'v\'L Name(s) 01 SlgnerjS) ~onally known to me - OR - = proved to me on the basis of satisfactory evidence to be the person(s) whose name(s~re subscribed to the within instrument and aCk~ledged to me that~e/they executed the same in~er/their authorized capacity(ies), and that by ~ner/tlie>r signature(s) on the instrument the person(s), 'orl'he entity upon behalf of which the person(s) acted, executed the instrument ", !~' " ROBIN L FENNEll 1 to," , NOTCOMM. '1100412 n en,.... AW",~G1 c,,/; ~~~ g ,J.- '. JUNEa,2IlCIO j \~ Signature ot Notary Pubtlc WITNESS my hand and officiai seal. ~~L " OPTIONAL Though the information below is not required by Jaw. it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document TItle or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: Individual Corporate Officer TItle(s): Partner - = Limited = General Attorney-in-Fact Trustee Guardian or Conservator Other: Individual Corporate Officer TItle(s): Partner - = Limited = General Attorney-in-Fact Trustee Guardian or Conservator ~ Other: Too ot tnumo nere ~ I TO:J ot tnumo nere I I , I Signer Is Representing: Signer Is Representing: '.: --.:--,~::::.:::::::-.-:..':,:;;==-:,~~-c::>,: ~..': --~:,-- -:.. ", ::- '': :-.: -,~~:: - ,:r-,-,,: --:-:-. :.-. ':.~- -':-':"--: -~,-/,:,,-_-.~,::- -": .'-: '::- :-~_': ~:-~-:--::'::.::''::-::'-~0~~: .-::.::'~ --:-'7=~C'~: _- .:: -..;;:::_~ =- -- -=-:--'-:'_:"_ ::-~.: . ',.:1S l\;alJ;;nal NOlarvA~soclalI0n'6236 Remmel Ave po 60' 71i"~ 'Cano:Ja f--a'~ CA913-J/"'3 L _ I ~ Proo ~,o 590"7' ( .) < / / r " 0, ~ / ( ( < S f S (' " \, r s. ~ o g g ~ ~ ~ ~ 9, 0, r / , ~,,' /, ~ , r [; 1 <' " ~ > " r " r ( " Reoroer Call Toll-F'ee 1.800-676.6827 EXHIBIY"r Property Description THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIIA, COUNTY OF SAN DIEGO. AND IS DESCRIBED AS FOLLOWS: BEING A SUBDIVISION OF A PORTION OF THE SOUTHWEST QUARTER OF SECTION 34, TOWNSHIP J7 SOUTH, RANGE] WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA H '\HOME\ENGINEER ILANDDEVIEXHIBIT 16.DEh.do, J]~-J3 .,.... 1\ e=:: ><1" Sf T ^ COUNCIL AGENDA STATEMENT Item: Meeting Date: 03/16/99 /1 ITEM TITLE: Public Hearing: PCC-99-26 - Request to construct, operate and maintain five 75 foot high monopole type AM transmission antenna on property owned by the Otay Water District adjacent to Village Five of the Otay Ranch - Applicant: Pacific Spanish Network, Inc. a.k.a. KURS 1040 AM, San Diego Resolution No. _ A Resolution of the City Council of the City of Chula Vista approving Conditional Use Permit PCC-99-26, a request to construct, operate and maintain five monopole-type AM transmission towers on property owned by the Otay Water District in the vicinity of the Otay Ranch, and making the necessary findings SUBMITTED BY: Director of Planning and Building REVIEWED BY: City ManagerG'Yll 1.~'-\fiJ ';v)7 ~ (4/5ths Vote: Yes_NolO Staff is following-up on issues concerning the proposed AM transmission facility with the Federal Communications Commission and is unable to resolve them prior to March 16, 1999. RECOMMENDATION: That the City Council continue this item to the March 23, 1999 meeting. /L/--j COUNCIL AGENDA STATEMENT Item: Meeting Date: 3/16/99 IS' ITEM TITLE: Public Hearing: PCM-95-01B - An application to amend the Otay Ranch SPA One Public Facilities Financing Plan to expedite Olympic Parkway construction. Resolution of the City of Chula Vista amending the Otay Ranch Sectional Planning Area One Public Facilities Finance Plan to change implementation thresholds for Paseo Ranchero and Olympic Parkway. SUBMITTED BY: Director of Planning and BUildi:~ ~ REVIEWED BY: City Managefl)'(2., ~ ~ (4/Sths Vote: Yes_ No--X..J On June 4, 1996, the Otay Ranch SPA One Public Facilities Finance Plan (PFFP) was adopted by the City Council, along with the SPA One Plan and other documents required for implementation of the Otay Ranch General Development Plan. The SPA One PFFP established thresholds for public improvements serving Villages One and Five, where Olympic Parkway is located. In order to expedite the improvements of Olympic Parkway, a financing plan and security for construction, along with modifications to the Equivalent Dwelling Unit (EDU) thresholds that affect Olympic Parkway, are being proposed by the City, the Otay Ranch Company and the McMillin Company (the SPA One developers). RECOMMENDATION: That the City Council continue this project to the March 23, 1999 City Council hearing. H:\HOME\PLANNING\KIM\REPORTS\prrp.CC3 /5'// -, ,- ~!~ "-.- '-~--.;:: -- ) ~RD!COMMISSION!COMMIITE \PPLICA TION RECEIVED (Please i"dicme your imerest by checki"g the appropriate line(s) (lfyou check more than OM line, please prioritize your interest) mY Of CHULA VISTA "99 JAH 15 A8 :10 Ethics (Board of) GrowTh Mgmt Oversight Housi"g Advisory Huma" Rdario"s Plannillg Commissiotl Resour~' Cot~\'ervUlio" Safety Commissio" Southwest PAC Town Cemre PAC Unile4NlIlionsDay Commiuee Veterans Advisory Commission Youth Commission l1u '/ Friendship '~ Library Board 'of Truslees , CuuuraJ Am ' '~ Design Review Mobilehome Rem Review Otay Val/~ Road PAC ~ '----:"';" EcolJOmic D~velopmelll :;,:;;l;:#i~{t:: ,',',r,,' ,', .-,- ::--:._~::-.;'.;}<':~-:.::;;. Parks &: Recrearion OlliER '.- . Name: rJAbHA-N A (Ie- City: {A(/t./I IhsrA Zip: 9/9/0 -Z90t , Home address: Mes 377 4LP/Ne j PLEASE PRlNT CLEARLY" , .' ,~,' ~~'J.I.'" g S/3 ,:'>.Res l'~o,\e, 0.9:,'. ~. Bus phone no: t~~.'~_:~'_ _~~:.~~~~1;';::.'_; , ,'~/~"' '-', ' ,,' " Do you 'I~ve Within the City limits of Chula Vista? ~ Registered voter in Chula Vista:-L5Jes , ,_no ~ ~.: , " '. " . y ves no - How long? 2 ~ y t2~ For YoU/h' Commission applicants only: School attending Grade: Colleges attended & degrees held: - '""~- " .-....-":... '.'" .... . ,~ " , .,.', :....-, ',Present employer: .Ei:€JI(_ Grc. Pc>Je~ON Position: ~~'J:7INC. 1:JJF't1:;~ . pJ4Jer11~"- , What,are your principal areas of interest in our city government and what experience(s) or special knowledge can you bring to those :>,t~? is l.cWt.'1'-1P, 6rJ J ~ltJN IfHfdt. lA)JrH- ~~'~ll/~Ct1-JON/ ~,\"".J),~ C/~/~Jeot..(1~Ic..~ ~ ~-~~ ~~'br SfflV/O;L.. c.. ' ~ C Or'- ();fnF J,.., C/(r&i?(JNj C <::YCnMf:IC) ~ ::t..G69 "It:fnJEr,4rZ(;'YtS cA'-.~ 13 ILtJ/NG1 ''t.-Ur-rt$1 4/., elK. '::~~.~~~.~'y'oubope to accomplish by your participation? ~/Jr ;17fI1.r B-ukt:lJJoI? :~~:.:'2"..':,~,'..;;. "':~:- >:'- [1/&' 6Z.~G:1iJ- ~t9PlW'r.N , . " ...""" e Board/Commission/Committee on which I wish to ,",IVe, ~ '; f/;/99t' ", ignature ) ?/J ~ J Date / . . . Please see tht rtverse sidt of Ihis Application fir .vtry lmoonant Leval infonnation . . . I ';1, .