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HomeMy WebLinkAboutAgenda Packet 1996/08/20 Tuesday, August 20, 1996 6:00 p.m. "I declare ynder penalty of perjury that 1 am employed by the Cit.y of Chu!a Vista in the Office of the City Ci3r': an':i t:'~,i ! P)s:~:I th',s Agen'-'~""I"o"I"^ en .:-''"~ P"I!"" '1 1':-""'1 ".j .-,_1\- ..!ir.' ~'II ~ \,.,..., dh.. "".... h;.-d. ~""'_<" ~.,\,: the Public ' rvic 5 Su:~JinJ rmd ut City Ha~; 011 DATED.' /6, 'l. SIGNED ~~~ !' Regular Meetm~ f the City of Chula ista Ci y Conncil Council Chamhers Puhlic Services Building REVISED CALL TO ORDER 1. ROLL CALL: Councilmemhers Alevy _, Moot _, Padilla _' Rindone _' and Mayor Horton _< 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: June 25. 1996 (Special Joint Meeting of the City Council/Redevelopment Agency), June 25, 1996 (Adjourned Regular Joint Meeting of the City Council/Redevelopment Agency), and June 25, 1996 (Joint Meeting of the City Council/Planning Commission) 4. SPECIAL ORDERS OF THE DAY: a. Overview of the 1996 Summer School Program By lIector Ornelas, Chula Vista Jr. High School Principal, and Reco~nition of the Environmental En~ineerin~ Student", - Kareen Burger, Angelina Parker, Thomas Shoots, Amanda Linn, David Cooper, Kristine Kyle, Ollin Lopez-Navarro, Karine Velasquez, Julie Burger, Salvauor Cano, Jesus AI~iandre, Rommyna Magno. b. Oath of Office: John Cochran, term to expire June 30, 1999 - Parks and Recreation Commission; Diana Rude, term to expire June 30, 2000 - Parks amI Recreation Commission; and Loren Tarantino, term to expire June 30, 2000 - Growth Management Oversight Committee. * * * * *' Effective ,4pril1, 1994, there have been new amendmenls to Ihe Brown Acl. The City Council must now reconvene into open session to report any final actions taken in closed session and to adjourn the meeting. Because of Ihe cost involved, there will be no I'ideolaping of Ihe recom'ened porlioa of Ihe meeling. Howel'cr, final actions reporled will be recorded in Ihe minllles H'hich will be /II'ailable inlhe City Clerk's Office. ***** CONSENT CALENDAR (!rems 5 rhrollgh 8) The slaff recommendations regarding Ihe following ilems lisled IInder Ihe ConsCf/1 Calendar will be enacled by the Council by one motion wilhoul discllssion IInless a Councilmelllber, a lIIember of Ihe public or Cily slaff requests that the item be pulled for disCllssion, If YOII wish 10 speak on one of Ihese ilems, please fill oul a "Request to Speak Foml" /II'ai/able in Ihe lobby and slIbmil it 10 Ihe Ci(v Clerk prior 10 Ihe meeling. (Complete the green fonn to speak in fm.or of the staff recommendation; complete the pink foml to speak in opposition to the slaff recommendalion.) Ilems Plllled frolll Ihe Conselll Calelldar will be discussed afler Board and Commission Recommendalions and Action /Iellls. Ilellls plllled by Ihe public will be Ihe first ilems of business. 5. WRITTEN COMMUNICATIONS: a. Letter from the Acting City Attorney staling that the City Council did not meet in Closed Session on 8/13/96. It is recommended thai the ktter be received aod tiled. ( Agenda -2- August 20, 1996 6, RESOLUTION 18412 APPROVING A ME~IORANDUM OF UNDERSTAND WITH THE SAN DIEGO UNIFIED PORT DISTRICT AND THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO SIGN SAME - The Port District is proposing to enter into a MOU with the I11cmher cities as a furtherance of their I:ommitment to al10cate $9 million annually from fiscal year 1994/95 through fiscal year 2001/02 to fund the tiddands pf(~iects approved as part of the Port District's Capital Improvements Program. Staff recommends approval of the resolution. (Director of Community Development) 7, RESOLUTION 18413 AUTHORIZING EXECUTION OF AGREEMENT BETWEEN CITY OF CHULA VISTA AND PACIFIC SOUTHWEST BIOLOGICAL SERVICES FOR CREATION OF WETLAND HABITAT - Pacific Southwest Biological Services designed a grading plan for a I Q-acre site to he vegetated in accordance with a Mitigation Plan for hiological impacts associated with construction of Phase I Road improvements to Gtay Valley Road. The grading plan has resulted in undesirahle hahitat comlitions. The agrel:'ment adJresses corrective action to he taken hy Pacific Southwest Biological Services. Staff recommends approval of the resolution. (Community Development) 8. RESOLUTION 18414 ACCEPTING $30,000 IN GRANT FUNDS FROM THE STATE OF CALIFORNIA DEPARTMENT OF HEALTH SERVICES, TOBACCO CONTROL SECTION AND AMENDING THE FY 1996/97 BUDGET TO APPROPRIATE $30,000 TO THE COMMUNITY TOBACCO EDUCATION GRANT BUDGET - On 1/17/95, Council approved a twenty- four month grant from the California Department of Health Services, Tohacco Control Se.ction for $120,000. The intent of this report is to discuss the progress of the grant program and request acceptance hy the City of the $30,000 in grant funds for the final six months of the pro.iect. (Director of Parks & Recreation) * * * EN!) OF CO,'\'.%'Nf CAI./:'N/JMl * * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been adl'ertised and/or posted as public hearings as required by law, If you wish to speak to any item, please fill out the "Request to Speak Fonll" OI'ai/able in the lobby alld submit it to the City Clerk prior /0 the meeting, (Complete the greell fonll to 'peak ;11 fOl'or of the staff recommendation; complere the pink fonn to speak in opposition to the staff recommendation.) Comments are limited to J;..e minutes per individual, PUBLIC HEARING ZAV-96-12; APPEAL OF PLANNING COM~1ISSION DENIAL OF A REQUEST FOR A VARIANCE TO INCREASE THE HEIGHT OF A ROOFTOP SIGN FROM 35 FEET TO 42 FEET FOR THE COMMERCIAL BUILDING LOCATED AT 396 "E" STREET IN THE C-T THOROUGHFARE COMMERCIAL ZONE - MARTIN AL TBAUM - ThIS is an appeal from the Planning Commission's denial of a request for a variance to al10w the construction of a rooftop sign to 42 feet in height for the commercial building 10cakd at 396 "E" Stred, within the C-T Thoroughfare Commercial zone. The C-T zone. limits the he:ight of rooftop signs to 35 fed ahove grade. Staff recommends item be continued to 9/17/96. (Director of Planning) Continued I'rom the meeting or 7/9/96, 9. ,_J Agenda 10. PUBLIC HEARING 11. PUBLIC HEARING -3- August 20, 1996 PCA-96-06: CONSIDERATION OF AMENDMENTS TO TilE MUNICIPAL CODE TO PROVIDE A PROCESS FOR DETERMINATION OF PUBLIC CONVENIENCE AND NECESSITY FOR ALCOHOLIC BEVERAGE LICENSING - In 1995, the City Council arrroved a Resolution delegating temporary authority to the Chief of Police to make determinations as to whether ct"rtain types of akoholic ht'verage lict"nses should he granted, in situations where there is already an over concentration of licenses hased on specitied criteria. This report provides for the pemlanent processing of such applications. Staff recommends item he continued to 9/10/96. (Director of Planning) CONSIDERING THE VACATION OF A PORTION OF RIGHT-OF-WAY FORMERL Y KNOWN AS INDUSTRIAL BOULEV ARD - The owner of the property adjacent to a 0.61 acre parcel of land formerly known as Industrial Boulevard, abo formerly used as a Park ami Ride Lot hy Caltrans, has requested that the City va\..'ate the parcel. In order to process the vacation, Coum:il must fIrst conduct a puhllc heanng in accon.lance with the California Streets anu Highways Code. Staff reL'ommends approval of the resolution. (Director of Puolic Works) RESOLUTION 18415 ORDERING TilE VACATION OF RIGHT-OF-WAY FORMERLY KNOWN AS INDUSTRIAL BOULE V ARD NORTII OF "L" STREET TO CERTAIN CONDITIONS 12. PUBLIC HEARING 13. PUBLIC HEARING A. ORDINANCE 2680 B. ORDINANCE 2687 CONSIDERING TilE OTA Y RANCII REORGANIZATION NUMBER I CONSISTING OF ANNEXING PORTIONS OF TilE OT A Y RANCH TO TilE CITY, DETACIIING THE OTA Y LANDFILL FROM TilE CITY AND DETACIIING TERRITORY FROM TIlE RURAL FlRE PROTECTION DISTRICT - In August 1995, Council authoTlzed the tilll1g of a reorganization application with LAFCO for the Otay Ranch Reorganization Numher 1. The propose.d reorganization would annex the majority of the Otay Valley Parcel, tht: Mary Patrick Birch Est.ite Ranch House and the Inverted "L" area to the City. The reorganization was filed with LAFCO on 4/8/96. On 7/1/96, LAFCO approved the reorganization, designated the City as the comlucting authority and authorized Council to conduct the proceeding to complete the reorganization procc:ss. Staff recommends item he continued to 9/10/96. (Special Planning Projects Manager, Ot<1Y Ranch) Item t'Cmtinued ['rom the meetin~ 0['8/13/96. ADOPTING OTA Y RANCII PRE-ANNEXATION DEVELOPMENT AGREEMENTS - Staff recommends Council place the onJinances on first reading. (Deputy City Manager Krempl) Continued from the meetin~ of 8/13/96. ADOPTING TilE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CIIULA VISTA AND SN~1B, LTD" JEWELS OF CHARITY, AND STEVEN AND MARY BIRCH FOUNDATION (second readin~ and adontion) - Staff recommends that Council not adopt the ordinance. (Deputy City Manager Krempl) Related item: not a Dart of the Duhlic hearin1!. ADOPTING THE PRE-ANNEXATIOI'\ DEVELOPMENT AGREEMENT BETWEEN TIlE CITY OF CIIIILA VISTA AND JEWELS OF CHARITY (tlrst readin~) (Deruty City Manager Krel11rl) 3 Agenda -4- August 20, 1996 C. ORDINANCE 2688 ADOPTING TilE PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SNMB, LTD. (tirst readinl') D. ORDINANCE 2689 ADOPTING THE PRE-ANNEXATION DEVELOP~fENT AGREEMENT BETWEEN THE CITY OF CIlliLA VISTA AND STEPHEN AND MARY BIRCH FOUNDATION (tirst readine) 14. PUBLIC HEARING ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT WITI! BALDWIN BUILDERS - The purpose of this item is to present a development agreement with Baldwin Builders. On 6/25/96. the Planning Commission and Counl~il considered a series of development agreements with Village Properties, United Enterprises, Greg Smith. and the Foundation. (The Foundation agreement was suhsequently split into three separate agreements). The remaining party who is a property owner of a portion of the Gtay Ranch property is Baldwin BuilJers, which is the truske for the hankruptcy. Staff n:'coll1mends Council place the Ordinance on first reading. (Deputy City Man"ger) A. ORDINANCE 2690 ADOPTING OTA Y RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND TIlE BALDWIN BUILDERS (first readine) IS.A. RESOLUTION ]8416 APPROVING THE RESOURCE CONVEYANCE PLAN FOR THE OTA Y RANCII SPA I - (This is a related item. hut does not reo..ire a Duhlic hearin1!.) B. RESOLUTION 18417 APPROVING TIlE INDE~INrFlCAT10N AGREEMENT BETWEEN VILLAGE DEVELOPMENT AND TIlE CITY OF CHULA VISTA - (This is a related item. hut does not re{lUire a Duhlic hearin1!l. C. PUBLIC HEARING PCS-96-04; CONSIDERATION OF TENTATIVE SUBDIVISION MAP FOR TIlE OTAY RANCH SPA ONE, CHULA VISTA TRACT 96-04, GENERALLY LOCATED SOUTH OF TELEGRAPH CANYON ROAD BETWEEN PASEO RANCHERO AND THE FUTURE SR-125 ALlGN~fENT - Recertitication of FEIR 95-01 and Addendum and reapproval of the Stakl11cnt of OVt'rriuing Consideration and Mitigation Monitoring Program. Arprov~ the Tt'.ntative Map for Otay Ranch SPA One, Chula Vista Tract 96~04, in acconJanl.:e with the Findings of Fact and suhject to the Conditions of Approval. Staff recommends aprroval of the resolution. (Otay Ranch Spl'ocial Planning Projects Manager) Continued from the meetinJ: of 8/6/96. D. RESOLUTION ]8398 APPROVING A REVISED TENTAT]VE SUBDIVISION MAP FOR PORTIONS OF OTA Y RANCII SPA ONE, CIruLA VISTA TRACT 96-04, AND ~1AKING TilE NECESSARY FINDINGS, ADOPTING TIlE SECOND ADDENDUM TO AND RECERTIFYING FINAL ENVIRONMENTAL I~IPACT REPORT FEIR 95-0] (SOl #95021012) AND READOPTING TilE STATEMENT OF OVERRIDING CONSIDERATIONS AND TIlE MITIGATION MONITORING AND REPORTING PROGRAM FOR TilE FEIR, AND DENYING APPROVAL OF ALTERNATIVE TENTATIVE SUBDIVISION MAP PROPOSALS I) Agenda -5- August 20. 1996 ORAL COM~llINICATlONS This is an opportunity for the general public to address the City Council on any subject matter within the Council's jurisdiction that is not an item on this agenda for public disCl/ssion. (State law, however, generally prohibits the City Council from taking action on any issues not included all the posted agenda.) /fyou wish to address the Council on such a subject, please complele the yellow IIRequesf /0 Speak Under OraL Communications Form" available in the labby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up actioll. Your time is limited to three minutes per speaker. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which ital'C been forwarded to them for consideration by one of the City's Boards, Commissiolls and/or Commiltees. None suhmitted. ACTION ITEMS The items listed in this sectioll of the agenda are expected to elicit substantial disCl/ssions and deliberations by the Council, staff, or members of the general public. 77le items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternatil'e. 77lOse who wish to speak, please fill out a "Request to Speak" fonn m'ai/able in the lobby aud submil il to Ihe City Clerk prior to the meeting. Public comments are limited to fi>-e minutes. 16. RESOLUTION 18418 ADOPTING MUNICIPAL POLLUTION PREVENTION POLICY, RECOMMENDATIONS AND BEST MANAGEMENT PRACTICES TO REDUCE TilE USE OF TOXIC ~IATERIALS IN TilE CITY'S OPERATIONS AS IDENTIFIED IN TillS POLICY - The Environmental Health Coalition (EHC) and the City worked jointly on a multi-year Municipal Pollution Prevention project. The rn~ject was funded by a $30,000 grant to EHC from the Jesse Smith Nuyes FoundatIOn. The goals of the rn~ject were to: (I) audit the use of toxic produl'ts ]n th~ City's puhlic places and work areas; (2) reduce the ust' of toxic m:-\terials used in City operations; and (3) create a Illodd for other ('iti~s to follow. Staff recommends approval of the resolution. (Environmental Rt'soun:e Manager). 17.A. RESOLUTION 18419 ACCEPTING PROPOSALS AND AWARDING CONTRACTS FOR POLICE INITIATED TOWING AND STORAGE SERVICES TO ANTIIONY'S TOWING, SOUTH BAY TOWING, PAXTON'S TOWING, AZ ~IETRO TOWING, AND J. C. TOWING - On 317195, Council authorized Police Dt'partment statf to design a competitive process to select providers of P{)li~'e initiated TowIng anti Impound Services. Proposals were accepted on 6/30/95. with twelve providc'Ts responding, The process useu was designed to improve the tow se.rvil..'es provided to consumers and the City while enhancing Geno;:':ral Fund revenUes through the implementation of a referral fee paid hy tow companies under contract with the City. Staff recolllmends approval of the resolutions, (Chief of Police) B. RESOLUTION 18420 AMENDING TilE POLICE INITIATED TOWING SERVICE RATE SCHEDULE AND IMPLEMENTING A REFERRAL FEE. I, Agenda -6- August 20, 1996 18. REPORT REGARDING PROPOSED MULTIPLE FAMILY RESIDENTIAL DEVELOPMENT PROJECT AT THE MTDB "H" STREET TROLLEY STATION - On 7/1/96, the Planning Department received a request from Edward F. Wagner leJr a letter of support for a proposed live story, lOS-unit multiple family residential devdopment rrc~ject planneu to he constmcted ahove the existing parking lot at the Metropolitan Transit Development Board's (MTDB) "H" Street Trolley Station. The requested letter of surport is intended to be included with Mr. Wagner's lonnal project proposal to MTDB. Staff recommends Council authorize the Director of Planning to forward a letter to Mr. Wagner and MTDB providing comments regarding the development proposal. (Director of Planning) ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the City Council will discuss items which have been removed from the Consent Calendar, Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers, Public comments are limited to five minutes per individual. OTHER BlISINESS 19. CITY MANAGER'S REPORT(S) a. Scheduling of meetings. b. Report on additional Assistant City Manager position, c. Report on California Population Change 1/1/96. d. ClP Expenditures in Western Chula Vista. 20. MAYOR'S REPORTIS) a. Ratification of appointments: Walter L. Fisher, Otay Valley Road Project Area Committee; Dr. Barry Russell, Cultural Arts Commission; Leo Kelly. Commission on Aging; and Fred Dufresne, Housing Advisory Commission. b. RESOLUTION 18423 TAKING A POSITION TO OPPOSE AB 956, WHICH IS NOT ADDRESSED IN THE LEGISLATIVE PROGRAM AND THEREFORE REQUIRES DIRECT COUNCIL ACTION - The City's 1995/96 Legislative Program was amended by Council on 12/12/95. Although this program was int~nc1ed to provide comprehensive direction to the Legislative Committee on City's legislative priorities, there are <..:ertain issues which are reserved for direct action hy Council. The Legislative Committee recommends approval of the resolution, 21. COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to (a closed session uml them:e to) the Regular City Council Meeting on Septemher 10, 1996 at 6:00 p.m. A joint meeting of the City Council/Redevelopment Agency will he held immediately following the City Council meeting, in the City Council Chamhers. i,--' Agenda -7- August 20, 1996 ***** CLOSED SESSION Unless the City AI/arney, the City Manager or Ihe City COllncil slales otherwise atlhis lime, Ihe Council will discuss and deliberate on the following items of bllsilless which are pennilled by law 10 be Ihe sllbject of a closed session discussion, and which the Council is ad..ised shollld be discllssed in closed session 10 best proleclthe interests of the City. The Council is reqllired by 1011' 10 relllrn 10 open sessioll, isslle any reporls of final action taken in closed session, and the voles laken. /lolI'fI'er, dlle 10 Ihe Iypicallenglh of time taken lip by closed sessions, the videotaping will be tenninaled at this poinl in order 10 sal'e cosls so Ihallhe COllncil's relllrn from closed session, reports of final action taken, and a(ljollTf/menl willnol be videolaped. NfI'erlheless, the report of final action taken will be recorded in Ihe minllles which wi/l be aI'ailable in Ihe City Clerk's Office. 22. CONFERENCE WITH LEGAL COUNSEL REGARDING: a. Existing litigation pursuant to Government Code Section 54956.9 . Christopher YS. the City of Chula Vista. b. Anticipated litigation pursuant to Government Code Sedinn 54956.9, . Metro sewer issues. PUBLIC EMPLOYEE RELEASE - PlII'su:ml to Gon'rnnwnt Code Sedion 54957 CONFERENCE WITH LABOR NEGOTIATOR. Pursuant to Government Code Sedion 54957.6 . Agency negotiator: John Goss or designe,t;' for CYEA. WCE, POA. IAFF, Executive Management. MicJ-Managt'l11t'nt, and Unrepresented. Employee organization: Chula Vista Employee;.; A",sociatio!l (CVEA) and Western Council of Engineers (WCE), Police Officers Association (POA) and International Assm:iation of Fire Fighters (lAFF). Unrepresented employee: Executive Management. Mid-Management. and Unrepresented. 23. REPORT OF' ACTIONS TAKEN IN CLOSED SESSION ***** v, / ~~~ ~~ ~~~~ -:....-~...... ClW Of CHUlA VISTA OFFICE OF THE CITY A TIORNEY Date: August 14, 1996 To: The Honorable Mayor and City council~, Ann Y. Moore, Acting City Attorney 0 From: Re: Report Regarding Actions Taken in Closed Session for the Meeting of 8/13/96 The Acting City Attorney hereby reports that the city Council did not meet in Closed Session on August 13, 1996. AYM: 19k C:\lt\clossess.no 6"~ "I 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 r)i....IUI~~P<pJI COUNCil AGENDA STATEMENT Item Meeting Date 08/20/96 t ITEM TITLE: Resolution J 11''11;'" Approving a Memorandum of Understanding Between the San Diego Unified Port District and the City of Chula Vista and Authorizing the Mayor to Sign Same Community Development Director U}-tfl ~ SUBMITTED 8Y: REVIEWED BY: City Manager (f ' , /" / \ v ~/ ,J (4/5ths Vote: Yes_ No_J BACKGROUND: The Port District entered into a Memorandum of Understanding (MOU) with the City of San Diego concerning funding for the expansion of the San Diego Convention Center. At the same time, the Port District recognized and committed to the expenditure of approximately $63 million for tidelands capital improvement projects to be completed over seven years in the member cities of National City, Imperial Beach, Coronado and Chula Vista. The Port District is proposing to enter into a MOU with the member cities as a furtherance of their commitment to allocate $9 million annually from FY 94-95 through FY 2001-02 to fund the tidelands projects approved as part of the Port District's Capital Improvements Program (CIP). RECOMMENDATION: That the Council adopt the resolution approving a MOU with the Unified Port District. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The Port District has agreed to contribute, on an annual basis, $4.5 million for a period of twenty years to the City of San Diego to help finance the expansion of the San Diego Convention Center. The Port District also agreed to reimburse the City of San Diego for certain consulting costs up to $4.5 million per year. However, these payments will be reimbursed from proceeds from proposed sale of bonds, or deducted from future annual payments. Concurrently, the Port District wishes to enter into MOUs with the other member cities concerning their commitment to fund tidelands capital improvement projects. The Port District is committing $9 million annually for seven years (a total of $63 million) to fund these projects in the cities of National City, Imperial Beach, Coronado and Chula Vista as approved in the Port District's CIP, originally dated April 26, 1994, and later amended. The other member cities have been requested to execute similar agreements. The Port District's CIP in the City of Chula Vista includes the following projects: Nautical Activity Center Nature Interpretive Center Seawater System Realign Access Channel Marian Parkway Realignment Extension of H Street Property Acquisition ~"I Page 2, Item _ Meeting Date 08/20/96 The City may, in the future, request changes to any projects or their time schedule, or may propose a different project than those shown. Any changes will not affect the level of reserves set aside for CIP projects or the $9 million annual set aside for the seven (7) fiscal years. In the event the Port District determines to change or in any way increase its obligations to the City of San Diego beyond the present $4.5 million annual contribution, including the Port District's present right of reimbursement, the written documents between the Port District and the City of San Diego or any other party, shall expressly provide that prior to any obligation or increase in any annual contribution becoming legally effective or due and payable, the Board shall first set aside the annual $9 million for the projects as provided pursuant to Paragraph 2 of the MOU with the City of Chula Vista. Then, at its absolute discretion, the Port District may determine the amount, if any, of available funds to pay any such increase. FISCAL IMPACT: A complete listing of projects and funding appears on Attachment A. Funding for the City over the seven year period totals $16.44 million. This represents 26% of the total $63 million in Port District funding for the four member cities (other than San Diego). Funding for Chula Vista in FY 95-96 will total $3.6 million, primarily in property acquisition expense for the Bayfront properties. Although the Port is committing $9 million annually for the member cities, the CIP is subject to review and revision as may be required by changing schedules and priorities, as well as the annual availability of revenues. There is no guarantee that all of the funds will be disbursed in any given year or carried over if not disbursed. (FK) M:\HOME\CQMMDEV\STAFF.REP\08-20-96\PORTMDU.113 [August 15, 1996 (3:08pm)] t..;J. RESOLUTION NO. 1'-'11.2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN DIEGO UNIFIED PORT DISTRICT AND THE CITY OF CHULA VISTA AND AUTHORIZING THE MAYOR TO SIGN SAME WHEREAS, the Port District entered into a Memorandum of Understanding (MOU) with the City of San Diego concerning funding for the expansion of the San Diego Convention center; and . WHEREAS, at the same time, the Port District recognized and committed to the expenditure of approximately $63 million for tidelands capital improvement projects to be completed over seven years in the member cities of National city, Imperial Beach, Coronado and Chula Vista; and WHEREAS, the Port District is proposing to enter into a MOU with the member cities as a furtherance of their commitment to allocate $9 million annually from FY 94-95 through FY 2001-02 to fund the tidelands projects approved as part of the Port District's Capital Improvements Program (CIP). NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby approve a Memorandum of Understanding between San Diego Unified Port District and the City of Chula Vista, a copy of which is on file in the office of the City Clerk as Document No. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said Memorandum of Understanding for and on behalf of the City of Chula vista. Presented by Approved as to form by chris Salomone, Director of Community Development c~ ~1 h"L&~ Ann Y. Moore, Acting city Attorney C:\rs\port..ou t" J I 00 w I- ;n en U en a: Lt) w III >- 0 2 :; 0 ., N W 0 2 c: I '0 (9 >- " '" ~ ~ <C 0 III en en a: I I I- :;; I- ~ " CD 0 >- " 0) 00 u 0) 0 0 ~ ~ 00 z a: ~ ~ I- w U >- a: -' I- ~ 00 U 0 00 L.L. W I I- ~ Z ~ w a: w (9 :s: 0 I- a: w c... 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CI C ." ~ ~ c OJ ::> .. .. ~ u ~ " .c: Z oo ." ~ C ;; "> c "<:; ~ -I-' ~ 0 0 .. 0 .. x :@@M <1: UMHHk Q. u 0: ,= U u u. UJ .3 (/) IIIIII > u u u c:> u c:> u CJ. -0 C 0 c:> '" c:> co OJ 0 II 0 - - '" -I-' "'" ..,. '" '" 0 '" c. u U '" - ..,. - 0 Q) - u > -0 oo Z co Z IIJ U <I: ~ - . MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN DIEGO UNIFIED PORT DISTRICT AND THE CITY OF CHULA VISTA RECITALS: A. The San Diego Unified Port District (Port District) and The City of San Diego entered into a Memorandum of Understanding concerning the expansion of the San Diego Convention Center. B. The Port District has agreed to contribute on an annual basis 4.5 Million Dollars for a period of Twenty (20) Years or for the life of the debt obligations created to finance that expansion, whichever is the shorter period. C. The Port District has also agreed to reimburse The City of San Diego for certain consultant and associated planning and design contract costs associated with the expansion at a rate not to exceed 4.5 Million Dollars per year, however, the Port District will be reimbursed for those costs either out of proceeds of the proposed sale of bonds or will deduct those costs from the amount the Port District is to contribute as provided in Recital B, above. D. At the time the decision was made to contribute the 4.5 Million Dollars in annual payments, the Board of Port Commissioners (Board) recognized and committed to the expenditure of approximately 63 Million Dollars for tidelands capital improvement program projects scheduled to be completed over the next Seven (7) Years (9 Million Dollars per year) and located within the City limits of the Port t--? 1 District member Cities of National City, Chula Vista, Imperial Beach and Coronado. This Memorandum of Understanding is in furtherance of that commitment to encumber annually 9 Million Dollars for Seven (7) consecutive fiscal year periods for construction of said projects as shown in the San Diego Unified Port District Tidelands Capital Improvement Program adopted by the Board on April 26, 1994. E. The Capital Improvement Program Ad Hoc Committee of the Board reported to the Board and recommended adoption of a Tidelands Capital Improvement Program, including setting aside 9 Million Dollars annually for the projects referred to in Recital D, above, and an annual contribution for expansion of the San Diego Convention Center which under no circumstances shall exceed 4.5 Million Dollars annually. F. The Board approved the Ad Hoc Committee's report and recommendations on April 26, 1994, and later authorized the Memorandum of Understanding with The City of San Diego dated June 21, 1994, concerning expansion of the San Diego Convention Center. NOW, THEREFORE, Port District and the City of Chula Vista (City) agree: 1. The Port District shall annually set aside as restrictive reserves 9 Million Dollars for a period of Seven (7) consecutive Fiscal Years commencing with the Fiscal Year 1995, which begins July 1, 1994, and concludes June 30, 1995. The parties acknowledge that 9 Million Dollars has been so set aside and encumbered for the Fiscal Year 1995. ~.,r 2 2. The 9 Million Dollars set aside annually shall be expended for Port District projects to be completed in the Port District members cities of National City, Chula Vista, Imperial Beach and Coronado, as shown in the Tidelands Capital Improvement Program (CIP) adopted by the Board on April 26, 1994, and as may be revised or replaced by any subsequently adopted CIP from time to time, for the Fiscal Years of 1995 thorough 2001. A summary of the present proposed CIP expenditures is attached hereto as Exhibit A and by this reference made a part hereof. 3. City may in the future, for projects shown in the CIP which are located in the limits of City, request changes to any such projects or their time schedule or may propose a different project than those so shown, and no such change or different project shall affect the level of reserves set aside for CIP projects or the 9 Million Dollar annual set aside for the said Seven (7) Fiscal Years. 4. In the event the Port District determines to change or in any way increase its obligations to The City of San Diego beyond the present 4.5 Million Dollar annual contribution as particularly provided in the Memorandum of Understanding between those parties, including the Port District's present right of reimbursement, the written documents between the Port District and The City of San Diego or any other party, shall expressly 3 ~~, I / provide that prior to any such obligation or increase in any annual contribution becoming legally effective or due and payable, the Board shall first set aside the annual 9 Million Dollars for the projects as provided for and in accordance with Paragraph 2, above, and then at its absolute discretion determine in accordance with Port District policy and practices the amount, if any, of available funds to pay any such increase and the amount so determined shall be used and shall be payment in full of such mcrease. 5. Notwithstanding any other provision in this MOU, the 9 Million Dollar annual set-aside may be changed or otherwise expended from time to time if the Board makes a finding that because of an emergency or fiscal crisis there is a need for all or part of these funds to be expended for the repair, operation, maintenance or development of Port District infrastructures critical and paramount to the operation of the Port District. 6. This Memorandum of Understanding is made for the benefit of the Port District and City only and not for the benefit of any third party. There are no other parties to this Memorandum of Understanding, express or 4 ~'l~ implied, direct, indirect or ostensible. The Port District and City agree and state that it is not their intent to create any third party beneficiaries to this Memorandum of Understanding for any purpose. DATED: , 1995. JOSEPH D. PATELLO PORT ATTORNEY SAN DIEGO UNIFIED PORT DISTRICT By Port Director CITY ATTORNEY THE CITY OF CHULA VISTA By By City Manger ~'II 5 jU:~ 2 2 1994 01'-15-'1t\t <C',;['\"I.\',',rtI""i.l/il//00/ o:"''':',~',i', <t Q : I 0 C , \ '" I_~....Q-!:! ~b '.... \0 "'OR'" \) Port of San Diego <lnd Lindhergh Field Air TerminCl! 161 YI 686-62110 . P.O. Box 488. San Diego, California 42112 0488 21 June 1995 Mr. John D. Goss City Manager City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 ;J;i ~ Dear Mr. ~: Re: Memorandum of Understanding At its meeting of June 20, 1995, the Board of Port Commissioners authorized the District to enter into a Memorandum of Understanding (MOU) with each of the South Bay Cities. Enclosed are two bound copies of the MOU, together with an extra copy. After authorization by the City Council, please have the two bound copies executed on behalf of your City and return both copies to me. After they have been executed on behalf of the District and documented, a fully executed original will be returned for your files. Please let me know if you have any questions. Sincerely, ~-D. PATELLa PORT ATTORNEY JDP:sw enclosure t.../~ . ,..- COUNCIL AGENDA STATEMENT 11''11:1 RESOLUTION Authorizing Execution of Agreement Between City of Chula Vista and Pacific Southwest Biological Services for Creation of Wetland Habitat Community Development Director ~-+n t S I JII~ / \. REVIEWED BY: City Manager U kJ )v" (4/5ths Vote: Yes_ No.X..! BACKGROUND: The City and Pacific Southwest Biological Services (PSBS) had an agreement for PSBS to design a grading, planting and irrigation plan for an approximately 1 Q-acre City-owned property for the purposes of satisfying wetland mitigation requirements for streambed impacts incurred as a part of the Otay Valley Road Phase I improvements project. The grading plan designed by PSBS resulted in excess surface expressions of groundwater, rendering the site unsuitable for the desired habitat. PSBS has agreed to correct the conditions on the site by regrading, reinstalling irrigation and replanting the site in conformance with the original plan. The subject agreement sets forth responsibilities of PSBS in completion of this work. The City, in exchange would pay outstanding invoices to PSBS for their work. Item Meeting Date 08/20/96 ? ITEM TITLE: SUBMITTED BY: RECOMMENDATION: That the Council approve the resolution authorizing the execution of an agreement between the City of Chula Vista and Pacific Southwest Biological Services for creation of wetland habitat. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Wetland impacts resulting from Otay Valley Road Phase J road improvements required the City to enter into a Streambed Alteration Agreement with the California Department of Fish and Game. That Agreement relied upon a mitigation plan prepared by PSBS, which included a grading plan for a parcel of land purchased by the City specifically to mitigate the road construction impacts. That grading plan called for topographic contours that were below the water table. The City included the grading plan in the construction specifications for the road improvements_ The contractor graded the site in conformance with the grading plan and the resulting condition was ground surface elevations over a majority of the site that are below groundwater levels, rendering the site unsuitable for creation of the specific type of habitat required by the Fish and Game agreement. Because of the defects in the grading plan that have hindered the City's ability to deliver a completed mitigation site to the Department of Fish and Game, payment of monies due to PSBS for other work related to Otay Valley Road improvements, in an amount of $36,924, has been withheld. PSBS has indicated their willingness to correct the problem by regrading the site, reinstalling the irrigation system and replanting the site, all at their own cost. Because the remediation of the grading condition requires import of soil and because the validity of the Fish and Game agreement requires conformance to a specific planting plan, staff has prepared an Agreement which sets forth 7-/ -J I Page 2. Item _ Meeting Date 08/20/96 responsibilities of PSBS in preparing the site in a manner which will satisfy the requirements of the Department of Fish and Game. The Agreement will also facilitate PSBS's ability to remove excess soil and debris on Parcel 1 of the Auto Park for use at the mitigation site. The City obligations outlined in the agreement include payment of outstanding fees incurred by PSBS. The actual design fees for the Phase I improvements have already been paid to PSBS. The fees which are currently being withheld are related to emergency services performed at the authorization of staff to avoid delays, and subsequent potential delay damages claimed by the contractor. in the Phase I improvements related to habitat permit issues. This work was authorized outside of the original contract because delays and costs associated with amending the contract would have been impractical in light of the need to complete the road improvements and not delay the opening of the Auto Park any further. The specific work performed by PSBS beyond their original scope of services included monitoring of construction activities to ensure that the contractor's work complied with all conditions of the streambed alteration agreement, and six other environmental permits through the California Department of Fish and Game, the U.S. Fish and Wildlife Service and the U.S. Army Corps of Engineers. The need for these services was immediate and critical to maintaining the validity of the permits and keeping the road construction schedule on target with the opening of the Auto Park. The funds for these services were included in subsequent appropriations for the street widening project and are currently available for this purpose. FISCAL IMPACT: Approval of the Agreement will allow PSBS to satisfy the conditions under which the City would pay $36,924 in outstanding fees; funds for which are available in the Otay Valley Road Street Widening account. (JM) M:\HOME\COMMDEV\STAFF.REP\08-20-96\ovr-psbs [August 14, 1996 (5:02pm)] 7--1. ~ RESOLUTION /8''1/:3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING EXECUTION OF AGREEMENT BETWEEN CITY OF CHULA VISTA AND PACIFIC SOUTHWEST BIOLOGICAL SERVICES FOR CREATION OF WETLAND HABITAT WHEREAS, the City of Chula vista and Pacific Southwest Biological Services (PSBS) had an agreement for PSBS to design a grading, irrigation and planting plan for an approximately 10-acre site to be used as mitigation for wetland impacts associated with Phase 1 Otay Valley Road improvements; and WHEREAS, the grading plan designed by PSBS was not effective iri achieving the appropriate topography to support the desired habitat; and WHEREAS, PSBS has agreed to remediate the grading and replace the irrigation and vegetation of the site in conformance with the original plans; and WHEREAS, in exchange, the City has agreed to pay PSBS $36,924 of previously appropriated funds subject to the terms of an Agreement for Creation of Wetland Habitat. NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby find, determine, resolve and order as follows: 1. The city Council hereby approves an Agreement for Creation of Wetland Habitat ("Agreement"), in accordance with the terms and conditions presented, in a final form to be approved by the City Attorney. 2. The City Manager, or his designee, is authorized to execute the Agreement and take all necessary measures to implement same. 3. A copy of the Agreement shall be kept on file with the City Clerk as Document No. PRESENTED BY: APPROVED AS TO FORM BY: Chris Salomone community Development Director M:\shared\COMMDEV\OVR-PSBS. RES 7~ ~(? AGREEMENT FOR CREATION OF WETLAND HABITAT This AGREEMENT FOR CREATION OF WETLAND HABITAT ("Agreement") is entered into effective as of August 20, 1996 ("Effective Date") by and between the CITY OF CHULA VISTA, a chartered municipal co.rporation ( "City") and PACIFIC SOUTHWEST BIOLOGICAL SERVICES, a California corporation ("PSBS") with reference to the following facts: A. On or about June 25, 1992 City and the California Department of Fish and Game ("Fish and Game") entered into that certain Streambed Alteration Agreement executed March 3, 1993; the agreement was amended on December 20, 1993, November 16, 1994 and December 13, 1995. The Streambed Alteration Agreement was required by Fish and Game pursuant to California Fish and Game Code section 1601 in order to compensate for the loss of wetland habitat resulting from the City's widening of Otay Valley Road. A copy of the Streambed Alteration Agreement, as amended, is attached hereto as Exhibit A. B. Pursuant to the Streambed Alteration Agreement, the City is obligated to acquire, improve as a wetland habitat, and dedicate a conservation easement in certain real property comprised of approximately ten undeveloped acres located south of Otay Valley Road in the City of Chula vista (the "Wetland Mitigation Parcel") . The Wetland Mitigation Parcel is more particularly described on Exhibit B attached hereto. C. On or about the effective date of the Streambed Alteration Agreement, City and PSBS entered into an agreement pursuant to which PSBS was obligated to design a grading, planting and irrigation plan ("Wetland Habitat Design Work") for the development of a sustainable wetland habitat on the Wetland Mitigation Parcel in accordance with the requirements of the Streambed Alteration Agreement. D. PSBS's Wetland Habitat Design Work was defective in that it resulted in grading contours lower than groundwater elevations. This resulted in the creation of a habitat which was unsuitable for purposes of satisfying City's obligations under the Streambed Alteration Agreement. E. PSBS is legally obligated to correct the problems caused by the defect in its Wetland Habitat Design Work and has agreed to do so on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the above recitals, the mutual covenants contained herein, and other good and valuable consideration, the parties hereby agree as follows: 1. Scope of Work. PSBS, or City approved subcontractors thereof, shall perform all work ("Work") necessary to improve the 1 Wetland Mitigation Parcel to a graded, irrigated, and planted condition consistent with the requirements set forth in the Streambed Alteration Agreement. The design and specifications for the Work are more particularly described on Exhibit C attached hereto. In the event of any conflict between the requirements for the Work contained in the Streambed Alteration Agreement and those set forth in Exhibit C, the requirements in the Streambed Alteration Agreement shall govern. subject to City's payment obligations hereunder, all Work shall be done at PSBS's sole cost and expense. 2. Compliance with Standard Specifications for Public Works Construction. All Work shall be conducted in compliance with the Standard Specifications for Public Works Construction (1991), commonly referred to as the "Green Book", as amended by the San Diego Regional Supplemental Amendments, 1992 supplements, Chula vista Standard Special Provisions, 1992 Regional Standard Drawings (1992) and the Chula vista Construction Standards (1992). Copies of these documents are available at the city for review by PSBS or its designee. PSBS acknowledges and agrees that it is familiar with these requirements. In the event of any conflict between the requirements for the Work contained in section 1 of this Agreement and those set forth in this Section, the requirements in section 1 of this Agreement shall govern. 3. Commencement and Completion of Work. The Work shall be commenced no later than September 20, 1996 and shall be completed by no later than December 20, 1996. 4. Obliqation to obtain Clean Fill. In addition to its other obligations hereunder, PSBS will be solely responsible for insuring that any fill installed at the site shall be free of any and all hazardous materials in violation of any and all hazardous materials laws. 5. Indemnity. PSBS shall indemnify, protect, defend and hold harmless the city, its councilmembers, officers, employees, agents and representatives from and against any and all liabilities, losses, damages, claims and costs (including attorneys' fees and court costs) arising from the performance of its work hereunder, including, without limitation, any such claims arising from the installation of fill at the site which is contaminated with hazardous materials. 6. Pavment. a. city shall pay PSBS one installment of $10,000 upon (a) timely completion of all required fill and grading work, (b) City's acceptance of such work, and (c) City's receipt and approval of mechanic's lien releases related to such work. 2 b. City shall PSBS a second installment of $10,000 upon (a) timely completion of all required irrigation and planting work, (b) city's acceptance of such work, and (c) City's receipt and approval of mechanic's lien releases related to such work. c. city shall pay PSBS a final installment of $16,894 upon (a) timely completion of all remaining work comprising the Work, if any, (b) city's acceptance of such work, (c) City's receipt and approval of mechanic's lien releases related to such work, and Cd) the final acceptance by Fish and Game, or its designee of the improved wetland Mitigation Parcel in satisfaction of city's corresponding obligations under the Fish and Game Agreement. 7. prevailinq Waqe. Due to the fact that the Work to be performed by PSBS hereunder is in satisfaction of PSBS's obligations under its non-Prevailing wage Wetland Habitat Design Work contract, the city did not solicit bids for the Work, and is not requiring that prevailing wages be paid in accordance with California Labor Code section 1773; however, PSBS acknowledges and agrees that PSBS is solely responsible for complying with any and all applicable prevailing wage laws. 8. General Provisions. a. Attornevs Fees. In the event of a dispute between the parties with respect to this Agreement, unless otherwise agreed by the parties in writing, the prevailing party in any arbitration, mediation or legal proceeding shall be entitled to recover from the other such prevailing party's reasonable attorneys' fees and costs. b. Authoritv: Bindinq Aqreement. Each individual executing this Agreement on behalf of PSBS represents and warrants that he/she is duly authorized to execute and deliver, and has the power to execute and deliver, this Agreement on behalf of PSBS, that the transaction contemplated hereby has been duly authorized by all requisite actions on the part of PSBS, that no other consents of any party shall be necessary to the consummation hereof, that this Agreement does not violate any existing law or any existing or pending agreement to which PSBS is subject, and that all the provisions of this Agreement shall be valid, legally binding obligations of and enforceable against the PSBS in accordance with their terms. c. Entire Aqreement. This Agreement, together with all exhibits attached hereto'and other agreements expressly referred to herein, constitutes the entire agreement between the parties with respect to the subject matter hereof. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 3 d. Survival of Indemnities and Warranties. All indemnities, warranties and representations provided by PSBS hereunder shall survive PSBS's completion of the Work hereunder or the earlier termination hereof. e. Further Assurances. PSBS and city hereby covenant that each will, at any time and from time to time upon request by the other party hereto execute and deliver such further documents and do such further acts as may be reasonably requested to fully effectuate the purpose of this Agreement. f. Time is of the Essence. Time is of the essence of each provision of this Agreement. g. Exhibi ts. Any exhibits referred to herein are attached hereto and hereby incorporated herein by this reference. IN WITNESS WHEREOF, the parties hereby enter into this Agreement effective as of the date first written above. CITY OF CHULA VISTA PACIFIC SOUTHWEST BIOLOGICAL SERVICES By: S~irley Horton, Mayor Its: [Print Name and Title] ATTEST city Clerk Approved as to form by Acting City Attorney 4 EXHIBIT A Streambed Alteration Aqreement CALIFORNIA DEPARTMENT OF FISH AND GAME 330 Gcdden Shore, Suit.e 50 Long Beach, California 90802 NQ~iflcatioD No.5-416-92 Page J of -2- AGREEMENT REGARDING PROPOSED STREAM OR LAKE ALTERATION THIS AGREHIENT, ent.ered int.o between t.he St.at.e e,f Calife,rnia, Department of Fish and Game, hereinafter called the Department, and John Goss of City of Chula Vist,a , 8t,at.e: of California, hereinaft.er called the OI=~r.at.or, is a8 follows: WHEREAS,pursuant to Section 1600 of California Fish and Game Code, the 01=~rator, on t.he Z5t.ll day of June, 1992., notified the Depart.ment. t.hat. they intend t(> divert or obstruct the natural flQ'w' of, or change the bed, channel, or 'bank c)f, or u~;e mat.er-ial froIn t.he ~;t.ream1::~d< 5} of I t.he fcd lC'\rJln9 \rJat.er-{ 5}: Otay River- San Diego County, CalifoI~ni3_1 Sectlcm 24 ToW'nship ~ Range l!L.- WHEREAS, the Department., (represented by Terri Dickerson has made an inspect,ion of ~;ubjec;t, area on t,he 14t,h day of Julv , 1992, and) ha~; det.ermined t,hat, :3uch opero.tione: may substantially adver5ely affect existing fish and ""ildlife r-eSCfur-c:e:s including: least. Bell '5 vir-eo. yJillo'W flvcat,cher'. velltf\r,1-breEl::;t.ed -chat. other sonabirds. raotors. earets. \rIaterfol.tll. lizards. t",o-5trioed aarter snake. t.reefr-oc~~,-.....:!;:9acb.: and all i:wuat,ic: r'e::,Cfurc:e5 and 'Wildlife ln t.he area. THEREFORE, the Depal'tment hereby propose~ ,measures to protect fish and \r.Iild!ife r'esour-ces dur-ing t.he Oper-at.orls \r.Iork. The O}:~rat.or her'e-by agrees t,o accept the follo",ing measures/conditions 0.5 part of the proposed ",ark. If t,he Operat.or j S 'Wclrk changes from t.hat. st.at,ed in t,he not,i ficat,ion a,peei fied above, this Agreement is no longer valid and a new notification shall be su'bmit.ted t.o t.he De;par.t.ment. of Fish and GaIl1e. Failure t.o comply 'Wit.h t.he provisions of this Agreement and lJith other per'tinent code sect,ions, including but, not. liII1it.ed to Fish and Game CClde Sect,ions 5Ei50, 5652, 5937, and 5948, Hiay result in prosecution. Nothing in this Agreement authorizes the Operator to trespass on any land or pr-clpert.y, nor does 1 t, roe! ieve t,he Oper'ot.or of responsibi 1 i t,y for corupl i ance \,lith applicable federal, state, or local lalJs or ordinances. A consl...lffimated Agreement. does nc!t, const.it,ute De}:1CIrt.ment. clf Fi::;h and Game endor.t;:;eHJent, of t,rJe proposed operat.ion, or assure the Department. I '3 concurrence 1# i th permi t,s r'eqe>ired frow c,t.her' agencies. b T is A reement becomes effective 15 1993 I#ith the De. rtment's si nat.ure and t.erminat.es 15 1994 for' ro -ec:t, cone,t.r'-lct.ion on! Thi:=; Actreement shall remain in effect for that time necessary to e;atisfv the t.erms/condit.ions of t,his- Aareement.. . Page L of L STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-416-92 1. The fed lowing pr-c,visic,ns c:on~;t.it.l1t.e tor-Ie limit. of activities El9reed t.o and resolved by this Agreement. Tr~ signing of this Agreement does not imply that the Operat,c1r' is precluded fr'cllfI doing crt.her act,ivit.ies at. t.}-!e:" sit.e. HO\\l'ever, act,ivit.ies not specifically agreed t.o and resolved by this: Agreement :shall be subject to separate not,i fleat.ion pursuant t:CI Fish and Game Code Sect,ions 1600 et, seq. I"~ ">'lop.<<!- v~",i.r~ -fAvm 3 +0 'to .J-u:f) ~ , w-{Y'ot-1rt'- U 2. (The Operator proposes to alter the stream to wIden Otay Valley Road to)12S'feet, ph.1s~a 20-fc'clt. \I.Iide con~;t.r1x;t.ion corTidc,r, :permanent.ly inJ1=lBc:t.ing 3.0 ac:r-es of ~ streambed and temporarily impacting an additional 1.1 acres of stream, in Chula Vi:>t,a. 3. The agreed work includes activities associated with No.2 above. The project area IS locat.ed in the Ot8Y River in ~n Die<;Jo Ccn.mt.y. Specific 'Wor.k areas and mi tigation measures are described on/ in the plams: and documents submi tted by the O}:erat.or., including "Ot.ay Valley Rc,od Widening Concept.ual Rest.orat.ion PlanH, prepared by Pacific Sout.h'West. Biological Services, Inc., dated February 8, 1990, and shall 1:~ implement.ed a~; pro}:lOsed unless dir.ect.ed different.ly by t.his agreement.. 4. The Qperat.or shall mit.igate t.he 1.1 acres of tjemporary impacts and the 3.0 acres clf }:~rmanent. impact.e; by c;reat.ing 1.1 acre::; c1n-sit.e and 6.0 acre~; off-sit.e of riparian habitat. 5. The off-sit.e mitigation shall be installed concurrent ",ith or preceding the roaq'Way 'Widenlng project, const.ruct.iOfJ. 6. The Operat,or shall have a qualified biologist onsit.e daily during flagging of const,rt1ct.iclrJ area, and dur.ing any impacts t.o veget.at.ion 'eg. clearing and grubbing) to ensure no impact,s occur to the adjacent vireo habi t,at.. I. 8i 1 t. set.t.l ing basins shall 1:~ loc:at.ed 8'Way,., fr'om t.he ~;tr-eaUJ clr lake' t.o }:JT.event. di5colored, silt-bearing water from reaching the stream during any flo~ regime. 6. The Operat.c'r 5hall have a qualified biologist.-on sit.e t.'Wice weekly froDJ ~1arch 1 to September 1 to survey for least Bellts vireo and ",illo", flycatcher. If an active nest. is 'Wit.hin 60 Db ,nclise t.hreshold) at.. any t.ime, no 'Wor'y, shall clcc:ur unt.il t.he young are fledged. 9. The Operator shall not, remove veget.at.ion ~it.hln the st.ream from t1arch 15 to July 15 t.o avoid impact.s t.o ot.her nest,ing blT"cb. 10. Disturbatlce or removal of vegetat.lon shall not. exceed t.he limit.s described in t.he in t.his a~lT"eement.. The di::;t,urbed ,pc)r.t.iclns of any st,r'eam c:hannel 'Wit,hln t,he high IIldter mark of t.he stream or lake shall be rest.ored to t.heir Ql~iginal condition. 11. Rest.orat.ion shall lnclude t.he reveget.at.ic,n of st.r-ipped or exposed area::,,; \I.Iit.h vegetation native to the area. 12. Structures/associated materials not designed to withstand high seasonal flows shall be remclved t.o 8r-eBS above t,he rJi9h \I.Iat,er mark before flows occur. Page 3 of ~ STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-416-92 13. Equipment. shall not. be operat.ed In \I1et,t~ed area~; \ including but. not, limit.ed t.o p)nded, flo~ing, or ~etland areas). When ,,",ork in a flo,,",ing st.ream i~ unavclida:ble, t.he ent.ir'e st,ream flo,,", shall be diverted around the ~ork area by a barrier, temporary culvert, ne~ channel, or other means approved by the Depart.ment.. Locat.ion of the upst.r'eam and do'Wnstream diversion points shall be approved by t.he Department. Corv3truction of the barrier, and/or the ne,,", channel shall noruJally 'begin it"! t.re do,,",nst.ream ar-ea and continue in an up8t.r'eam direction, and the flo~ shall be diverted only ~hen construction of the diversion is completed. Channel 'bank or barrier cClnst,ruct.ion shed 1 'be adequat.e to prevent. seepage into or from the ",ark area.. Channel bank5. or ba.rrien:.~ sh.a11 not be made of eart,h or ot.her' substances subject, to erosion unless first. enclosed by sheet pilin9, rOCK riprap, or other protective material. The enclosure and the supportive mater'ial shall l::~ removed when t.he ""clrk i5 cCllIJple.t.e.d and removal 5haIl nClr'mally proceed from dOlJlnstream in an upstream direction. 811 t. set,t.1 in<;1 1:::iBsin~; shed 1 l:e locat.ed o'Way from t.he st,r-eam or laJ.\e too prevent. discolored, silt-bearing water from reaching the st,ream or lake dlJ.ring any flo.... re91IlI~. If silt. cat,chment basin/s is/are used, t.he basin/s shall be construc:::ted across the st.ream iIflUJediat.ely dOwTJst.reaw clf t.he pr-ojec:t, slt.e. Cat,CrlIfJent, basins ~J-Iall l::~ construc:ted of materials ....hich are free from mud and silt. Upon-' completion of the proje.ct., all 1:::iBsin mat.erials alon9 'Wit.h tor'le tor-ap,r::ed sediment.s: shall be renjClved fr-om t.h~ stream in such a manner that said removal 5ha11 not introduced sediment to the st.r"eam . 14. Preparation shall be made so that runoff from steep, erodible surfaces ....ill be di vert.ed int,o st,able ar'eas wi t.h 1 i t.t,le er'oslon }')c)t.ent.lal. Fr-equent, wat.er- checKs shall be placed on dirt roads, cat tracks, or' "<9ther ....ork trails t.o control ero:=:lon. 15. Wat.er cont.ainin9 mud, silt, clr ot.her pollut,ant.~; frcmJ aggregat.e washing or ot.her activities shall not. be allowed to enter a lake or flo\tling st.t~eam or placed in locat,ions t.hat. may be subjec:t.ed t,o hi9h ~t.C1rm f10'Ws, 16. The Operator $hall use tem~~rary construction fencing/flagging to identify the agreed limit.~; of dist.urbance 'Wit-hin t.he st.reamr 17. In order to determine if the revegetat,ion techniques used have been successful any plant, 5f:~cie5 r-equir-ed t.ha.t. are list.ed l:~lcl'W shall achieve t.he minimum gro'Wth at. the end of three and five years. I f the minim1.Jffi growth is not achieved then the Of-~rat.or' ~;hall be re5pC1n~;ible for t,aKln9 t,he appropriat,e c:or-rec:t.ive measures a~; determined by Department. representative5. The Operator shall be 1~espon5ible f01- any co~;t. occurred dur i ng t.he reveget.a t, i on or in subsequent. correct. i ve mea ~.ure5 . Plant.ing cent.ers shall 'be: between 6 to 10 feet. for l,oi'il10....s; r.;et'.lleen 20 to 25 feet, for sycaIfjore~;. 10. t,he All planting shall be done 'Wint.er rainy season, or' t,he rJet~een October 1 and April 30 to Oper-at.or shall irr i9at.e t.o ensure take advantage of 5l~rvival. . .. Page ~ of 5 STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-416-92 19. All plant.ing shall have a minimulII clf 80% :=:;urvival t.he first. year and 100% survival thereafter and/or shall attain 75% cover after 3 years and 90% cover after 5 year-e; for t.he 1 i fe of t.he project. I f the 8\..U"'V i va 1 and ce,ver' requi r'ement.s have not been met, the Operator is responsible for replacement planting to achieve these requirement.s. Replacement. plant.s shall be mC1nit.ctred 'With t.r.e same survival and gro~th requirements for 5 years after planting. 20. An annual report. shall 'be submit.t,ed t.o t.he Depart.ment. by Jan. 1 clf each year- for 5 years after planting. This report shall include the survival, % cover, and height, of bot.h t,ree and shrub species. The muuber by species of plant,s replaced, an overview c)f the revegetation effort., and the met.hod 1.l5ed t.o assess these paramet.ers shall 81$0 'be inc:l'udecl. P)-JOt.os fr'clm designat,ed phot.o stat.ic'os shall be inc:luded. 21. Ra~ cement/concrete or ~ashing" the,-eof, asphal t, paint 0" other coating mat.erial, oi lor' ot.her }:t€:t.role\'UfJ prc,duc:t.e., Clr any ot.her e.ubst.anc:es vhich could 1:~ hazardm..\$: t.o aquatic life, resulting fl~Om. project rela.ted activitie6, shall be prevent.ed frciUl c:ont.Elminat.ing t.he ::.oi I and/or ent,ering t.he vat.ers clf t.he st,at.e. Any of these materials, placed within or where they may enter a stream or lake, by Oper'at.or or Bny par-t.y 'Working under c:ont.raet., or \o.Ii.t.h t.he :permi::.sic,n clf t,he Operator, $hall be remov~d immediately. 22. Staging/st.orage areas fC'T equipment. and mater'ial::: shall 1:::te loc:at.ed clut.side ()f the st'I~eaff1. 23. The Operator shall submit copies of the bonds for ,the amount of complete r'estorat,ion t.o t.he Depar.t.nrent. pric'T" t.o init,iat.icln clf cClnstruction act.ivit,ies. 24. A lNildlife conservation easement shall be recorded on the property to protect exi::.t.ing fish and 'Wildlife r'esourc:es in per}:~tuit.y. The ea::.eUJent. shall 1:~ in favor of the Department or it,s designated agent and ..shall be recorded lNithiri one year of signing t.hie; agreement.. An clffer' of dedic:at.ion shall be made 'Wit,hin 90 day~; of signing t,his agreement.. The form and content of the easement shall be approved by t.he Depart,ment.'s legal advisor::. pr'ior t.o it,::; execut.ion. The legal advisor'5 can tiC: contacted at (916, 654-3821. 25. No debris, soil, silt, sand, bark, slash, saW'dust, rubbish, cement or concret.e or 'WB5hing::- t,hereof, cli 1 or I:~t.role\.~UI produc:t.3 or ot,her' clrganic: or eart.hen mat.erial from any logging, construction, or aS50ciated activity of ",hatever natlJre shall be allo'Wed t.o ent.er int.cl or' plac:ed \o.Iher'e it. may 'be 'WElshed by rainfall or r'unoff int.o, !Jaters of the Stat,e. When opero'ations are completed, 03.ny excess mat.erials or debris ~3hall be removed from t,he \o.Iork area. No rubc.Il::.h Bhall (~ depc'51t.ed 'Wit.hin 1:10 feet. of the high ",ater mark of any stream or lake. 26. The Ol:~r'at.or' shall comply 'Wlt.h all lit.t.er and pollut.ion 10.\0.15. All c:ont.ract.or!::'1 subcontractors and employeee;: shall also obey these laws and it shall r-Je the r'et:,pone.ibilit.y of t.he operat.oT' t,o en::.ure compliance. 27. No equipment maint,enance shall be done lNit,hin or near any stream channel or lake marglrt 'INhere pet.rclletIDJ pr'ciC~\.~c:t,5 or ot.h~r :poll ut,;:mt,::. froIIl t.he equipment. may ent.er t.hese al'eas under any floW'. ".' Page ~ of ~ STREAMBED ALTERATION CONDITIONS FOR NOTIFICATION NUMBER: 5-416-92 28.. The O}:terat.or shall provide 8 copy of this Agreement, to all contractor-s, subcontractors, and project supervisors. Copies of the Agreement shall be readily available at work sit.es ~t ell times during periods of act.ive ,",ork crnd JlJU~t. 'be presented to any Department personnel, or personnel from another agency upon demand. 29, The Oper-at,or shall JK1t,ify t.rse: Depart.ment., in wr'it.ing, at least. Jive (5) days prior to initiation of construction (project) activities and at least five (5) days prior to completion of construction (project) activit.ies. Not.ificat.ion shall be sent to the Department at 330 Golden Shore, Ste 50, Long Beach, CA 90802, Attn: ES. 30. The Depart.ment. reser-ve8 t.he r-ight. t.o s\.1spend andlclf"" revoke t.hi s Agr'eement. if the Department determines that the circumstances warrant. The circumstance5 that could r"equir-e a reevaluat,lc'n include, but. ar'e not limit.ed t.o, the fClllowing: 6. Failure to comply ~ith the terms/conditions of this Agreement. b. The informat.ion provided by t.he OJ:~rat,c'r in support. of t.J-Je Notification is determined by the Department to be incomplete, or inaccurate. c:. When ne'W inforroatic)n l:~cclffJee. avai lable t.o t.he De}:lCIrt.JIJent. represent.ative{s) that ....,as not kno\tln ....,hen pI~eparing the original t,errus/condit.ioTle. of t.his Agreement.. d. The project as described in the Not.ification/Agreement has changed, or' condit.ions affect,ing fi~:h and \IIlldllfe r'eE;OUrce~; change. CONCURRENCE {Operatorls name) California Dept. ?f Fish and Game ~. , U >>;j;(~ :J--JJ-i3 {si;r ture) {dat.e) i~~~E!~~~~___~1~L'B_ {5ignat.ure) (date) Department of Fish and Game 330 Golden Shore Ste. 50 Long Beach, Calif. 90802 THE RESOURCES AGENCY Attn: Joe Monaco John Goss City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 ,~3T . ib'J- 'if @",rr; ,~ '" 'V 'Z' ~ , ff DEe 1993 ; ':"I "- Receiv d ... ; N WJ"lInunity D e Q:) , - De evel"Pnlfnt <0 " '" PirtJnent ,.. 10.... I:) ~!!:\ ~ 0<, 1." .!?.r / r'l. -- ....19LS~'t1\.u December 20, 1993 Dear Mr. Goss: We have reviewed your request to amend and extend our Agreement 5-416-92 for the Otav River, in San Dieao, County. Pursuant to Fish and Game Code Section 1600 et seq. this letter, when countersigned by you, amends our agreement as follows. a. Phase 1 and Phase 2, with 1.1 acres of temporary impacts to the stream and 3.0 acres of permanent impacts to the stream are addressed in the original .,y~ Agreement. Phase 3 shall also be included under this amendment. Phase 1, 2 ,~~L-rv and 3b are for Otay Valley Road widening and upgrades and are to be completed(' I ~1') by the City of Chula Vista. Phase 3a is for the Otay Valley Road Bridge ~ zB ~~ )[ 6e'~ replacement and is to be completed by the County of San Diego. b. Phase 3 impacts an additional 0.31 acres of stream temporarily and 0.39 acres of stream permanently. An additional approximate 0.2 acres of stream is the location of the destroyed bridge and future replacement bridge. c. Specific work areas and mitigation measures are described on/in the plans and documents submitted by the Operator, including '''Biological Assessment for Endangered Species on the Otay Valley Road Widening Project", prepared by Pacific Southwest Biological Services, Inc., dated September 27, 1993, and shall be implemented as proposed unless directed differently by this Agreement. d. The City of Chula Vista shall replace all temporary impacts with 1.41 acres high-quality habitat on-site. e. The City of Chula Vista shall mitigate the permanent impacts of 3.39 acres (3.09 acres vireo habitat and 0.3 acres marsh) by the creation, restoration and enhancement of 12.36 acres of vireo-quality habitat and 0.3 acres of marsh, on a site along the Otay River, in general proximity to the impact area, on parcels owned by, and being acquired by, the City of Chula Vista. The site is currently degraded upland habitat. f. All mitigation shall be installed by April 30, 1995. g. The wetland creation, restoration and enhancement shall be implemented as described in the Federal Biological Opinion Least Bell's Vireo Mitigation Measures, dated November 4, 1993. h. All terms and conditions under the Federal Biological Opinion by the Fish and Wildlife Service, dated November 4, 1993, shall be enforceable by the Department under this Agreement. However, the conditions of the Federal Biological Opinion shall not supersede this Agreement and amendment. i. The City of Chula Vista accepts all responsibilities and liabilities for all Phases of this project - 1, 2, 3a and 3b, including: all mitigation; compliance with all the conditions of Agreement 5-416-92; and compliance with all the conditions of this amendment. Page 1 of 3 j. The County of San Diego, who is constructing Phase 3a for the City of Chula Vista, shall be provided a copy of this Agreement and amendment. The City shall ensure that the County complies with all terms and conditions of this Agreement and ~endment. copies of the Agreement and amendment shall be readily available at work sites at all times during periods of active work and must be presented to any Department personnel, or personnel from another agency upon demand. k. All project engineers, project inspectors, and contractors and sub- contractors shall be provided with a copy of this Agreement and amendment, and shall abide by the terms and conditions of this Agreement and amendment. 1. If the Operator or any of the individuals mentioned above violatp. any of the terms or conditions of this Agreement and amendment, all work shall terminate immediately and shall not proceed until the Department has taken all of its legal actions. m. It is understood that Phase 3a (the County's bridge) may commence prior to the issuance of the Endangered Species Management Take Permit, since no take of vireos/vireo habitat shall occur with this Phase of the project. No other Phases shall begin until the Endangered Species Management Take Permit has been issued. It is also understood that Phase 1 (the City's road widening and upgrades from the 80S freeway to the transition just past Nirvana Road) is in progress under Agreement 5-416-92, and may continue, provided The Operator complies with all conditions of the Agreement and this amendment. n. No construction activity (except for fine grading with a D4 grader, backhoe, and/or skiploader; utilities placement; roadway surfacing; placement of drain boxes; curbs and gutters; fencing; guardrails; striping; lighting; landscaping; and irrigation) shall occur within 750 feet of an occupied least Bell's vireo nest. Those excepted activities listed above, or other activities approved in writinq by the Department, may occur within proximity to occupied habitats provided they are limited to daylight working hours after 11:00 AM. o. Monitoring by a qualified biologist approved by the Department shall be done during the construction period to ensure compliance with the above conditions. Regular monitoring of vireos shall be conducted as a part of the work. Should behavioral patterns of identified vireo pairs (monitored a minimum of three times per week) exhibit stress or reactions to the project's work, work believed to be causing behavioral changes shall cease immediately and further timing restrictions and/or work restrictions shall be coordinated with the Department prior to resuming work. p. The mitigation site of 12.66 acres (both restoration and enhancement areas) shall be protected for fish and wildlife use in perpetuity. A wildlife conservation easement shall be recorded on the property, as described in 5- 416-92. Any actions contrary to the purpose of the site shall be subject to DFG approval. q. No native vegetation shall be cleared, grubbed, or otherwise impacted from February 1 to September 1. Any non-native vegetation to be cleared, grubbed, or otherwise impacted from February 1 to September 1 shall be surveyed prior to impacts by a qualified biologist for nesting birds. The biologist shall submit all field notes to the Department prior to impacts. If any nesting birds are found, no work shall occur. r. A cowbird trapping program shall be conducted within the subject reach of the river valley for a period of 5 years as a part of the on-going mitigation site establishment maintenance. The trapping program shall run from April through July and shall include the maintenance and use of no fewer than eight traps. Page 2 of 3 . s. The Operator may remove silt and debris from the culverts once annually for maintenance between September 15 and October 15. No impacts to the on- site mitigation areas shall occur. t. Permanent fencing shall be placed along the roadway (in the road buffer zone which is to be seeded with native species, but that is not considered part of the mitigation site, and outside all mitigation areas) after construction is completed, in order to protect the roadside habitat from future impacts from foot traffic, vehicular traffic and trash dumping. u. NO weed abatement, road maintenance or other activities shall take place within the stream and/or within native habitat, unless such an activity is first approved by the Department. v. The Department requires notification equivalent to that provided to the USFWS, including timely notice of noncompliance, take, and other periodic reports. The Department contact person shall be Mr. Curt Taucher, Environmental Services Supervisor, Department of Fish and Game, 330 Golden Shore, Ste 50, Long Beach, California 90802. w. A performance bond for project implementation (eg. habitat enhancement, revegetation, maintenance and monitoring) that specifically references this agreement, shall be submitted to the Department for approval prior to initiation of construction activities for Phases 2 and 3b. The performance bond surety shall be an "admitted" carrier and all transactions shall be governed by the Bond and Undertaking Law (CCP SS995.010 -996.510). The performance bond shall stipulate that in the event of a default, the Department shall be entitled to relief in the form of cash only. Should any legal action be necessary to enforce or interpret the terms of the performance bond, the Department, as a prevailing party, shall be entitled to collect reasonable attorney's fees from the losing party. The performance bond may be subject to partial reduction upon completion and acceptance of certain work by the Department. This amount shall be based on a cost estimate which shall be submitted to the Department for approval within 30 days of signing this amendment. This letter also extends the period during authorized by the agreement may continue. agreement is Anril 30. 1995. Be advised that all terms of Agreement 5-416-92 remain in force throughout the new term of the agreement. A copy of said agreement AND THIS AMENDMENT AND EXTENSION LETTER must be kept on site and be shown upon request to Department personnel during all periods of work. which activities otherwise The new termination date of the Two copies of this letter are being sent to you. PLEASE RETURN ONE SIGNED ORIGINAL to the Department of Fish and Game, at 330 Golden Shore, Suite 50, Long Beach, CA 90802. If you have further questions, please contact me at (714) 363-7538. CONCURRENCE: ;(=y~ Terri Dickerson ,? Environmental Specialist III i ,:~f)J- " I ~~D. Goss, City Manager (2-21-)J DATE. Page 3 of 3 Department of Fish and Game 330 Golden Shore Ste. 50 Long Beach, Calif. 90802 THE RESOURCES AGENCY Attn: Joe Monaco John Goss City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 November 16, 1994 Dear Mr. GOBS: We have reviewed your request to amend and extend our Agreement 5-416-92 for the Otav River, in San Dieqo, County. Pursuant to Fish and Game Code Section 1600 et seq. this letter, when countersigned by you, amends our Agreement, executed March 3, 1993 and an amendment to the Agreement, executed December 21, 1993 as follows. a. Phase 1 and Phase 2, with 1.1 acres of temporary impacts to the stream and 3.0 acres of permanent impacts to the stream are addressed in the original Agreement. Phase 3 shall also be included under this amendment. Phase 1, 2 and 3b are for Otay Valley Road widening and upgrades and are to be completed by the City of Chula Vista. Phase 3a is for the Otay Valley Road Bridge (28' x 82') replacement and is to be completed by the ~ounty of San Diego. b. Phase 3 impacts an additional 0.31 acres of stream temporarily and 0.39 acres of stream permanently. An additional approximate 0.2 acres of stream is the location of the destroyed bridge and future replacement bridge. c. Specific work areas and mitigation measures are d~scribed on/in the plans and documents submitted by the Operator, including "Biological Assessment for Endangered Species on the Otay Valley Road Widening Project", prepared by Pacific Southwest Biological Services, Inc., dated September 27, 1993, and shall be implemented as proposed unless directed differently by this Agreement. d. The City of Chula Vista shall replace all temporary impacts with 1.41 acres high-quality habitat on-site. ----- e. The City of Chula Vista shall mitigate the permanent impacts of 3.39 acres (3.09 acres vireo habitat and 0.3 acres marsh) by the creation, restoration and enhancement of 12.36 acres of vireo-quality habitat and 0.3 acres of marsh, on a site along the Otay River, in general proximity to the impact area, on parcels owned by, and being acquired by, the City of Chula Vista. The site is currently degraded upland habitat. f. All mitigation shall be installed no later than November 30, 1995. g. The wetland creation, restoration and enhancement shall be implemented as described in the Federal Biological Opinion Least Bell's Vireo Mitigation Measures, dated November 4, 1993. h. All terms and conditions under the Federal Biological Opinion by the Fish and Wildlife Service, dated November 4, 1993, shall be enforceable by the Department under this Agreement. However, the conditions of the Federal Biological Opinion shall not supersede this Agreement and amendment. i. The City of Chula Vista accepts all responsibilities and liabilities for all Phases of this yroject - 1, 2, 3a and 3b, including: all mitigation; compliance with all the conditions of Agreement 5-416-92; and compliance with all the conditions of this amendment. Page 1 of 3 .- j. The County of San Diego, who is constructing Phase 3a for the City of Chula Vista, shall be provided a copy of this Agreement and amendment. The City shall ensure that the County complies with all terms and conditions of this Agreement and amendment. Copies of the Agreement and amendment shall be readily available at work sites at all times during periods of active work and must be presented to any Department personnel, or personnel from another agency upon demand. k. All project engineers, project inspectors, and contractors and sub-contractors shall be provided with a copy of this Agreement and amendment, and shall abide by the terms and conditions of this Agreement and amendment. 1. If the Operator or any of the individuals mentioned above violate any of the terms or conditions of this Agreement and amendment, all work shall terminate immediately and shall not proceed until the Department has taken all of its legal actions. m. It is understood that Phase 3a (the County's bridge) may commence prior to the issuance of the Endangered Species Management Take Permit, since no take of vireos/vireo habitat shall occur with this Phase of the project. No other Phases shall begin until the Endangered Species Management Take Permit has been issued. It is also understood that Phase 1 (the City's road widening and upgrades from the 805 freeway to the transition just past Nirvana Road) is in progress under Agreement 5-416-92, and may continue, provided The Operator complies with all conditions of the Agreement and this amendment. n. No construction activity (except for fine grading with a D4 grader, backhoe, and/or skiploader; utilities placement; roadway surfacing; placement of drain boxes; curbs and gutters; fencing; guardrails; striping; lighting; landscaping; and irrigation) shall occur within 750 feet of an occupied least Bell's vireo nest. Those excepted activities listed above, or other activities approved in writinq by the Department, may occur within proximity to occupied habitats provided they are limited to daylight working hours after 11:00 AM. o. Monitoring by a qualified biologist approved by the Department shall be done during the construction period to ensure compliance with the above conditions. Regular monitoring of vireos shall be conducted as a part of the work. Should behavioral patterns of identified vireo pairs (monitored a minimum of three times per week) exhibit stress or reactions to the project's work, work believed to be causing behavioral changes shall cease immediately and further timing restrictions and/or work restrictions shall be coordinated with the Department pr~or to resuming work. p. The mitigation site of 12.66 acres (both restoration and enhancement areas) shall be protected for fish and wildlife use in perpetuity. A wildlife conservation easement shall be recorded on the property, as described in 5-416-92. Any actions contrary to the purpose of the site shall be subject to DFG approval. q. No native vegetation shall be cleared, grubbed, or otherwise impacted from February 1 to September 1. Any non-native vegetation to be cleared, grubbed, or otherwise impacted from February 1 to September 1 shall be surveyed prior to impacts by a qualified biologist for nesting birds. The biologist shall submit all field notes to the Department prior to impacts. If any nesting birds are found, no work shall occur. r. A cowbird trapping program shall be conducted within the subject reach of the river valley for a period of 5 years as a part of the on-going mitigation site establishment maintenance. The trapping program shall run from April through July and shall include the maintenance and use of no fewer than eight traps. s. The Operator may remove silt and debris from the culverts once annually for maintenance between September 15 and October 15. No impacts to the on-site mitigation areas shall occur. Page 2 of 3 . . . t. Permanent fencing shall be placed along the roadway (in the road buffer zone which is to be seeded with native species, but that is not considered part of the mitigation site, and outside all mitigation areas) after construction is completed, in order to protect the roadside habitat from future impacts from foot traffic, vehicular traffic and trash dumping. U. No weed abatement, road maintenance or other activities shall take place within the stream and/or within native habitat, unless such an activity is first approved by the Department. v. The Department requires notification equivalent to that provided to the USFWS, including timely notice of noncompliance, take, and other periodic reports. The Department contact person shall be Mr. Curt Taucher, Environmental Services Supervisor, Department of Fish and Game, 330 Golden Shore, Ste 50, Long Beach, California 90802. w. A performance bond or letter of credit for project implementation (eg. habitat enhancement, revegetation, maintenance and monitoring) that specifically references this agreement and provided as part of the CESA MOU, shall be submitted to the Department for approval prior to initiation of construction activities for Phases 2 and 3b. The performance bond surety shall be an "admitted" carrier and all transactions shall be governed by the Bond and Undertaking Law (CCP ~~995.010 _ 996.510). The performance bond shall stipulate that in the event of a default, the Department shall be entitled to relief in the form of cash only. Should any legal action be necessary to enforce or interpret the terms of the performance bond, the Department, as a prevailing party, shall be entitled to collect reasonable attorney's fees from the losing party. The performance bond may be subject to partial reduction upon completion and acceptance of certain work by the Department. This amount shall be based on a cost estimate which shall be submitted to the Department for approval within 30 days of signing this amendment. x. A wildlife conservation easement shall be recorded on the property to protect existing fish and wildlife resources in perpetuity. The easement shall be in favor of the Department or its designated agent and shall be recorded within one year of signing this agreement. An offer of dedication shall. be made no later than November 30, 1995. The form and content of the easement shall be approved by the Department's Environmental Services Headquarters prior to its execution. They can be contacted at (916) 653-4875. This letter also extends the the agreement may continue. 30. 1995. period during which activities otherwis~ authorized by The new termination date of the agreement is November Be advised that all terms of Agreement 5-416-92 remain in force throughout the new term of the agreement. A copy of said agreement AND THIS AMENDMENT AND EXTENSION LETTER must be kept on site and be shown upon request to Department personnel during all periods of work. Two copies of this letter are being sent to you. PLEASE RETURN ONE SIGNED ORIGINAL to the Department of Fish and Game, at 330 Golden Shore, Suite 50, Long Beach, CA 90802. If you have further questions, please contact me at (714) 363-7538. CONCURRENCE: ~=~ Terri Dickerson Environmental Specialist III ~ DATE)(. 2. 1- ~'lr Page 3 of 3 --...- II- ." Department of Fish and Game 330 Golden Shore Ste. 50 Long Beach, Calif. 90802 THE RESOURCES AGENCY Attn: Joe Monaco John Goss City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 COMMUNITY DEVElOPMENT DEPARTMENT DEC I 5 f995 December 13, 1995 Dear Mr. Goss: We have reviewed your request to amend and extend our Agreement 5-416-92 for the Otav River, in San Dieqo, County. This amendment and extension is not valid until the fee of $595.50 is received by the Department. As previously described: Phase 1 and Phase 2, with 1.1 acres of temporary impacts to the stream and 3.0 acres of permanent impacts to the stream are addressed in the original Agreement. Phase 3 was included under a previous amendment. Phase 1, 2 and 3b are for Otay Valley Road widening and upgrades and are to be completed by the City of Chula Vista. Phase 3a is for the Otay Valley Road Bridge (28' x 82') replacement and is to be completed by the County of San Diego. Phase 3 impacts an additional 0.31 acres of stream temporarily and 0.39 acres of stream permanently. An additional approximate 0.2 acres of stream is the location of the destroyed bridge and future replacement bridge. The City of Chula Vista shall replace all temporary impacts with 1.41 acres high- quality habitat on-site. Pursuant to Fish and Game Code Section 1600 et seq. this letter, when countersigned by you, amends our Agreement, executed March 3, 1993 and an amendment to the Agreement, executed December 21, 1993, and an amendment executed November 16, 1994, as follows. c. Specific work areas and mitigation measures are described on/in the plans and documents submitted by the Operator, including IIBiological Assessment for Endangered Species on the Otay Valley Road Widening Project", prepared by Pacific Southwest Biological Services, Inc., dated September 27, 1993, and shall be implemented as proposed unless directed differently by this Agreement. It is possible that one portion of the proposed mitigation, a 6.46 acre site, will be relocated to another site. Any such revisions to the mitigation plan shall be submitted for Department review and approval no later than May 31, 1996. e. The City of Chula Vista shall mitigate the permanent impacts of 3.39 acres (3.09 acres vireo habitat and 0.3 acres marsh) by the creation, restoration and enhancement of 12.36 acres of vireo-quality habitat and 0.3 acres of marsh, on a site{s) along the Otay River, in general proximity to the impact area, on parcels owned by, and being acquired by, the City of Chula Vista. The site{s) are currently degraded wetland and upland habitats. f. All mitigation shall be installed no later than February 28, 1997. Page I of 2 ,-- " . . x. A wildlife conservation easement shall be recorded on the property to protect existing fish and wildlife resources in perpetuity. The easement shall be in favor of the Department or its designated agent and shall be recorded within one year of signing this agreement. An offer of dedication shall be made no later than November 30, 1996. The form and content of the easement shall be approved by the Department's Environmental Services Headquarters prior to its execution. They can be contacted at (916) 653-4875. y. The Operator may remove three mounds of soil blocking three culverts to cut a trench and improve drainage, impacting an additional: 250 ft2 of stream (mulefat scrub); 150 ft' baccharis scrub; and another 150 ft' of unvegetated stream (roadway). The contours shall be gently sloping (approximately 3':1) and it shall be designed so as not to create future erosion problems. The Operator shall not remove any vegetation from February 1 to September 1. The Operator shall mitigate as described in the letter from Sweetwater Environmental Biologists, Inc., dated November 22, 1995, and shall revegetate the first two locations with the wetland hydroseed mix described. As stated previously: i. The City of Chula Vista accepts all responsibilities and liabilities for all Phases of this project - I, 2, 3a and 3b, including: all mitigation; compliance with all the conditions of Agreement 5-416-92; and compliance with all the conditions of this amendment. j. The County of San Diego, who is constructing Phase 3a for the City of Chula Vista, shall be provided a copy of this Agreement and amendment. The City shall ensure that the County complies with all te~s and conditions of this Agreement and amendment. Copies of the Agreement and amendment shall be readily available at work sites at all times during periods of active work and must be presented to any Department personnel, or personnel from another agency upon demand. k. All project engineers, project inspectors, and contractors and sub-contractors shall be provided with a copy of this Agreement and amendment, and shall abide by the terms and conditions of this Agreement and amendment. p. The mitigation site of 12.66 acres (both restoration and enhancement areas) shall be protected for fish and wildlife use in perpetuity. A wildlife conservation easement shall be recorded on the property, as described in 5-41~-92. Any actions contrary to the purpose of the site shall be subject to DFG approval. This letter also extends the the agreement may continue. 30, 1996. period during which activities otherwise authorized by The new termination date of the agreement is November Be advised that all terms of Agreement 5-416-92, and all terms of previous amendments, remain in force throughout the new term of the agreement. A copy of said agreement AND THIS AMENDMENT AND EXTENSION LETTER must be kept on site and be shown upon request to Department personnel during all periods of work. TwO copies of this letter are being sent to you. PLEASE RETURN ONE SIGNED ORIGINAL to the Department of Fish and Game, at 330 Golden Shore, Suite 50, Long Beach, CA 90802. If you have further questions, please contact me at (714) 363-7538. CONCURRENCE: )Sin:~, . ,/1;A,'v.-, U'-<:~ Terri Dickerson Environmental Specialist III " DATE:J/3/q6 , , Page 2 of 2 EXHIBIT B Wetland Mitiqation Parcel ORDER NO. 1048023-7 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THAT PORTION OF LOT 2 OF SECTION 19, TOWNSHIP 18 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE SOUTH LINE OF LOT 2, 165 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT; THENCE WEST ALONG THE SOUTH LINE OF SAID LOT, 660 FEET; THENCE AT RIGHT ANGLES NORTH 660 FEET; THENCE AT RIGHT ANGLES EAST 660 FEET TO A POINT 165 FEET WEST OF THE EAST LINE OF LOT 2; THENCE SOUTH 660 FEET TO THE POINT OF BEGINNING, CONTAINING 10 ACRES. PARCEL 2: AN EASEMENT AND RIGHT OF WAY FOR ROAD PURPOSES OVER, UNDER, ALONG AND ACROSS" THAT PORTION OF LOT 2 IN SECTION 19, TOWNSHIP 18 SOUTH, RANGE 1 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AND BEING DESCRIBED AS FOLLOWS: BEGINNING AT "THE NORTHEAST CORNER OF ABOVE DESCRIBED 10 ACRE TRACT; THENCE NORTH ON A LINE PARALLEL WITH AND 165 FEET WEST OF THE EAST LINE OF SAID LOT 2 TO THE NORTH LINE OF SAID LOT; THENCE WEST ALONG THE NORTH LINE OF SAID LOT 2, 10 FEET; THENCE AT RIGHT ANGLES SOUTH AND PARALLEL WITH THE EAST LINE OF SAID LOT 2, TO THE NORTH LINE OF SAID 10 ACRE TRACT; THENCE EAST ALONG THE NORTH LINE OF SAID 10 ACRE TRACT, 10 FEET TO THE POINT OF BEGINNING. PAGE 5 " s. '0\ -A. -:Y ~ 'A c=' '. . ii i;i ~ ~ ~. . ~. : ~~ ~~ ~ .: ~~ ~ ~ a~ ~ j1!iIi ~ i ~~: ; ~u ;;; Q~ ~ ~ ;~ I ~ ! '~f;\.'-:::~'~::'4,Tt~~ ~,'~' ~--------------------------------i ' \ I \ I Z . ,___, , I ' , I , I L_--l I , ' , I ~~ I I ,i ! 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H II: ui ihi h Ih ! f .... ~-... lHE = {HiE = I!E JE !PHE fHE If!E ~'iIE = f1ur ~ IE liE ~ lIE IE !U~ ~ li~E !ll~ ~ 'r ~ ~ fiE U~ ~ IE !I.~] j I ~ i ,i I If. i ~ I I .i .& t h.;;1. I~ . tH 11 i~UU ! !i '11,. t':t ~iI -I~ 'I IJf!111 I ii I~ i Uti 1ft hh Ii ~ 1~1 IIi 1 \"-'!! . t't h't!1 I ft I rl i'i I lul I I i} "I t!h :i! lU~ i; IJt jl: ~ .I"'~ .'i& .J! fS I II il ill J. is- Islitl I i I~ II. III {,Ii' ...1 i~ h ~I.. ~ ~ ! i '"Iii II j1 r n} &f[ i i]l I Ii i I ~It ..I I.. Ii . II .1 .. q I . Ii; l{ii . r' ! If IJ II'. 1"1. iai !iiil _ h Sl I ill ~iL .iU i~ gi I i i..H !.~n JI I II s I J. hi .fh 111.1 & d I I Id 1u.~I,"'n if h i ~ 11111 ii .. :.. hi r COUNCIL AGENDA STATEMENT Item: B Meeting Date: 08/20/96 ITEM TITLE: Resolution I ~' II/AccePting $30,000 in Grant Funds from the State of California Department of Health Services, Tobacco Control Section and Amending the FY ] 996/97 Budget to appropriate $30,000 to the Community Tobacco Education Grant Budget SUBMITTED BY: Director of Parks and Recreation>;tU !1f ( City Manager \) ,-/\~. o ' 1// (4/5ths Vote: Yes..x No_) REVIEWED BY: On January] 7, ]995, Council approved a $]20,000 24-month grant from the California Department of Health Services, Tobacco Control Section. $30,000 was appropriated for the first six months of the program (January - June 1995). Authorization was also given by the Council to execute Service Provider Sub-Contracts with a provision for extensions through the life of the grant based on satisfactory performance and funding availability. The State of California authorized the second installment of the grant, in the amount of $60,000, for FY 1995-]996 and now has authorized the third installment, in the amount of $30,000, for FY 1996- 1997. The intent of this report is to discuss the progress of the grant program and request the acceptance by the City of the $30,000 in grant funds for the final six months of the project. RECOMMENDATION: That the City Council adopt the resolution amending the FY ]996/97 budget and appropriating 30,000 to the Community Tobacco Education Grant budget. DISCUSSION: Background: ]n November 1988, California voters approved the Tobacco Tax and Health Protection Act of 1988 (Proposition 99), which added a 25 cent tax to each pack of cigarettes sold in the state. These additional tobacco taxes are earmarked for tobacco-related research, health education and promotion, and health care. Enabling legislation for Proposition 99 during the past five years has provided legislative authority for programs administered by the Tobacco Control Section (TCS) of the California Department of Health Services to: I. Conduct health education interventions and behavior change programs at the state level, in the community, and other non-school settings; 2. Apply the most current research and findings; and 3. Give priority to programs that demonstrate an understanding of the role community norm change has in influencing behavioral change regarding tobacco use. [M:\home\parksrec\al13 - TobgmtJ,AI3] 1 8-1 Item: Meeting Date: 08/20/96 In early September 1994, the Parks and Recreation Department received a Request for Proposal (RFP) entitled "Community Tobacco Education Interventions" ITom TCS. It was anticipated that approximately $6 million in grants ($3 million ITom each fiscal year [1994/95 and 1995/96]) would be awarded to 30-40 agencies and organizations that specifically addressed one or more of TCS's three priority program areas: environmental tobacco smoke, youth access to tobacco, and/or countering pro- tobacco influences in the community. In its efforts to continue strengthening and expanding services to youth in Chula Vista, the Parks and Recreation Department and the Chula Vista Youth Coalition developed a grant proposal in response to this RFP. During the September 22, 1994 Youth Coalition meeting, seven agencies expressed an interest in being included in the grant proposal as project partners. All interested agencies were asked to submit one-page summaries highlighting how a tobacco education component would be implemented based on the TCS criteria, and the amount of funding needed to operate the program. The grant proposal submitted requested funds for the following components: 1. Augmentation of funding for the youth newspaper project sponsored by the City and South Bay Community Services' KidzBiz Program (the City's first-year California Healthy Cities Project activity approved by the City Council on September 20, 1994). 2. Augmentation of funding for South Bay Community Services' gang prevention program. The program targets at-risk ethnic youth between the ages of 10 and 18 who are involved, associated, or at-risk of being involved in gang activities. Tobacco education would be incorporated into the current program to increase participants' knowledge and awareness of the dangers of tobacco use, and reduce youth access to tobacco products, by changing attitudes and behaviors of this high risk group. Funding would be used to add a part-time counselor to make presentations and coordinate follow-up activities at 20 local school sites. These presentations and activities are not part of the Chula Vista Elementary School and Sweetwater Union High School Districts' current curriculum. 3. Adaptation of tobacco education curriculum developed by the San Diego County Office of Education to train older youth to be mentors and positive role models for younger children in a variety of recreational settings (e.g., afterschool playground sites; WizKidz Program offered at Lorna Verde and Lauderbach Community Centers; and programs offered by other youth- serving agencies such as the South Bay Family YMCA, Boys & Girls Club, etc.). 4. Incorporation of tobacco education into components of the City's Youth ACTION Program, particularly Junior High Outreach, High School Happenings, and Late Night Teen Programs. ACTION stands for "Activities Coordinated Through Interagency Organizational Networks." The program is intended to improve access and availability of services and programs to youth 13-18 years of age. [M:\home\parksrec\aI13 - Tobgmt3.A131 2 8-~ Item: Meeting Date: 08/20/96 5. Provision of start-up funding for the Boys & Girls Club of Chula Vista's "Smart Moves" program. This program was developed by the Boys & Girls Club of America and targets teens, adults, and the community at-large in efforts to prevent smoking. The local Boys & Girls Club currently does not offer this program to its participants because of the lack of funding to implement the curriculum. Based on similar concepts as the "Teens as Teachers" program, "Smart Moves" will bring to participants in the Club's two educational programs (serving more than 100 children and youth each year) opportunities for older youth to teach and mentor younger children on the dangers of tobacco use. 6. Sponsorship of a variety of special events and activities promoting tobacco-tree living for Chula Vista youth, including but not limited to dances, talent shows, annual art competitions, and an annual Youth Health Fair. 7. The hiring of a part-time Project Coordinator (.50 FTE Recreation Specialist) and a part-time Recreation Aide (.25 FTE) in the Parks and Recreation Department to support the tobacco education program. A total of ISO proposals were submitted to TCS. Of this total, 42 were funded, including the City of Chula Vista. Of the 42 programs selected for funding, 38 had a primary focus on youth. Selection for funding by the State offers the Parks and Recreation Department and the Youth Coalition several opportunities to increase Chula Vista's visibility as a model program offering creative responses to the changing needs of youth. As a funded program, the Parks and Recreation Department and the Youth Coalition will also be active participants in the County's Tobacco Control Coalition. The other agency partners with the City of Chula Vista are South Bay Community Services, South Bay Family YMCA, and the Boys & Girls Club of Chula Vista. Tobacco Education Graut Proe:ress ReDort In the first six months of the program all the sub-contracting agencies proceeded with the implementation of their portion of the program in addition to participating in the City-wide activities. The .50 FTE and the .25 FTE Tobacco Education grant staff have been involved in numerous start up activities such as negotiating the "Scope of Work" with the State, implementing agreements with the sub-contractors, hiring and training staff, setting up Youth Advisory Boards, and preparation for the "Teens As Teachers" training. In February and March of 1995, Chula Vista's youth participated in "Operation Storetront," a program which seeks to change policies regarding tobacco advertising and promotion targeting youth. Chula Vista teens surveyed local stores to document the amount of tobacco ads and promotions in stores close to schools. The results of the survey were included in the San Diego County information forwarded to the State of California. The State is publicizing the survey results to raise community awareness about this problem. [M:\home\parksrec\all3 . TobgmtJ.A13] 3 8-3 Item: Meeting Date: 08/20/96 Beginning in September 1995 and ending in May 1996, the Tobacco Education Program completed two separate trainings for youth who were trained as "Teens As Teachers." Following their training, the youth made 205 presentations at area playground sites, YMCA PRYDE sites, and the Boys & Girls Club, reaching 1,137 youth under 13 years of age. As part of these presentations, the playground youth were invited to participate in an Art Contest which would show the negative aspects of tobacco use. There were 250 Art Contest entries, with the best 25 receiving awards which were distributed at the City-wide Health Fair in April 1996. At the end of the "Teens As Teachers" portion of the program, two events were held to recognize and reward the teens for their many contributions to the program, to the Parks and Recreation Department, and to the residents of Chula Vista. Another of the comprehensive goals for this program was the completion of a City-Wide Health Fair focusing on tobacco use. The Health Fair, held as part of the Chula Vista Expo '96, had twenty-seven different booths which served/educated several thousand Chula Vista residents on the consequences of use of tobacco products. The $30,000 received for the final six months of the program will be dedicated to encouraging the youth of the community to work with City leaders in an effort to strengthen the existing tobacco Vending Machine Ordinance, or to work towards implementing a tougher Ordinance which would provide sanctions for those in business who sell tobacco products to the youth of the community. FISCAL IMPACT: The City will receive $30,000 for use through December 31, 1996. These funds are appropriated to the Community Tobacco Education Grant budget (290-2900) for use by the City and the sub-contractors. These funds are part of the award of a 24-month grant in the amount of $120,000 by the California Department of Health Services, Tobacco Control Section, for a tobacco education program. All General Funds appropriated for expenditure in this program will be fully reimbursed by the grant. Grant Award Date Amount 111195 $30,000 711/95 $60,000 711/96 $30,000 TOTAL $120,000 Attachments: "A" - Award Letter "B" - Budget for Grant Funds [M:\home\parksrec\aI13 . Tobgmt3.AI3) 4 B-1 ,~ jM :TOB~CCO CONTROL SECTION 916.3222189 1996.07-31 09:50 .880 P.02/02 STAn: Of CAU'ORNIA-MfALP1 AND WEl1.u.E AGBicY ATTACHMENT A PETE WItsON'. <;...".., DEPARTMENT OF HEALTH SERVICES 71~/1U. , SDHT p.o. .oJ,: ...m:z SACJl.AMENTO. CA 9.-2~7320 . July 31, J996 Ms. Rosemary Brodbeck Project Director Chula Vista Parks and Recreation Department 276 Founh Avenue Chula Vista, CA 91910 Grant No: 94-20954 Dear Ms. Brodbeck: This is to foHow up on your request regarding the availability of funds for the remainder of this calendar year A5 you lenow, your agency has a multi-year grant funded :!Tom two fiscal years, $60,000 for FY 1994-95 and 560,000 for 1995-96. The FY 1995-96 funds were appropriated by the legislature last year when the Govemor signed the FY 1995-96 Budget Act. Your agency has approval to access the monies until the tobacco grant terminates on December 31, 1996. If you nave any questions, please contact Elyse Lang, your assigned contract analyst at (916) 323 -0684 Sincerely, ~p~!~ Administrative & Contract support Unit Tobacco control Section 8 -,5 ATTACHMENTB CHULA VISTA TOBACCO EDUCATION PROJECT PARKS AND RECREATION DEPARTMENT FISCAL YEAR 1996-97 290-2900 -- Community Tobacco Education Grant LINE ITEM LINE ITEM LINE ITEM DESCRIPTION TOTALS 5105 - Wages $6,508 .50 FTE Recreation Specialist, $8.66 - $9.52/hour, .25 FTE Recreation Aide, $6.61 - $7.01/hour. 5143 - Medicare $94 5145 - PARS $244 5202 - Contractual $15,500 South Bay Community Services - Youth Serrvices Newspaper, $2,500, Gang Prevention, $2,500; Boys & Girls Club ofChula Vista - Late Night Teen Program, $1,167, "Smart Moves/Friendly Persuasion" Program, $6,333; South Bay Family YMCA - PRYDE/Junior High Outreach Program, $3,000. 5212 - Printing and $1,325 Binding 5218 - Postage 50 5225 - Transportation 600 Allowances 5224 - Training 250 5252 - Telephone 535 5291 -City Staff Services $4,125 5301 - Office Supplies 40 5371 - Recreation $727 Supplies TOTAL $30,000 Ob:TG2budget.076] e-~ RESOLUTION NO. I r-y/.y RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $30,000 IN GRANT FUNDS FROM THE STATE OF CALIFORNIA DEPARTMENT OF HEALTH SERVICES, TOBACCO CONTROL SECTION AND AMENDING THE FY 1996/97 BUDGET TO APPROPRIATE $30,000 TO THE COMMUNITY TOBACCO EDUCATION GRANT BUDGET WHEREAS, on January 17, 1995, Council approved a $120,000 24-month grant from the California Department of Health Services, Tobacco Control Section; and WHEREAS, $30,000 was appropriated for the first six months of the program (January - June 1995); and WHEREAS, authorization was also given by the Council to execute Service Provider Sub-Contracts with a provision for extensions through the life of the grant based on satisfactory performance and funding availability; and WHEREAS, the State of california authorized the second installment of the grant, in the amount of $60,000, for FY 1995-96 and now has authorized the third installment, in the amount of $30,000, for FY 1996-97; and WHEREAS, staff requests Council acceptance of the $30,000 in grant funds. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby accept $30,000 in grant funds from the Department of Health services, Tobacco Control section and amend the FY 1996/97 budget to appropriate the $30,000 to the community Tobacco Education Grant budget (290-2900) for use by the City and the sub-contractors. Presented by Approved as to form by Jess Valenzuela, Director of Parks and Recreation C (,-- l J IVlO-t '^'- I'-- Ann Y. Moore, Acting city Attorney c: \ rs\ tobgrant 3"7 --: COUNCIL AGENDA STATEMENT Item 9 Meeting Date 8/20/96 ITEM TITLE: Public Hearing: ZA V-96-12; Appeal from Planning Commission denial of a request for a variance to increase the height of a rooftop sign from 35 ft. to 42 ft. for the commercial building located at 396 E Street in the C-T Thoroughfare Commercial zone - Martin Altbaum SUBMITTED BY: Resolution Denying the appeal and thereby upholding the decision of the Planning Commission to deny the request for a variance to increase the height of a rooftop sign from 35 ft. to 42 ft. for the commercial building located at 396 E Street in the C- T Thoroughfare Commercial zone Director of Pla~ning JlfIt City Manager C{~ (4/5ths Vote: Yes_No..xl () REVIEWED BY: This is an appeal from the Planning Commission's denial of a request for a variance to allow the construction of a rooftop sign to 42 ft. in height for the commercial building located at 396 E Street, within the C- T Thoroughfare Commercial zone. The C- T zone limits the height of rooftop signs to 35 ft. above grade. At the applicant's request (please see attached), staff recommends that this item be continued to the September 17, 1996 meeting. RECOMMENDATION: That Council adopt a motion continuing ZA V-96-12 until the September 17, 1996 meeting. tf-I I> . ~ \ ....~ . ,...-- RECEIVED COIN MART JEWELIJtY .u. 31 P4:32 i:,. _ . .U TO: FROM: DATE: RE: PUr \ . lit" fW et/ULA VISH '. tRY IlMt{.S 'FF~6$Jt1ut. ChaI4~ 0I.!J1!Jl0, G1!J/421.-1W Carla Griffin City Clerk's Office City ofChula Vi.ta 278 Fourth Avenue Chwa Vista, CA 91910 fax: 585-5612 Marty Altbaum Coin Mart Jewe1r)' July 31, 1996 Council agenda item: Coin Mart Jewelry sip I would like to request that the City Council agenda item regarding a roof-top sign on property currentJy occupied b.r Coin Mart Jewelry be postponed until Sept.....,.,....l7. 1996. I have submitted initial plans for .ignage to the City's Planning Department_ Thank you tor your assistance. md ce.' ~(J ~~ . ?f~: J?k- J/~ /~t-On I~ ~(~~/~ 0,h~ 9-:J. ? COUNCIL AGENDA STATEMENT Item ) tJ Meeting Date 8/20/96 ITEM TITLE: Public Hearing: PCA-96-06; Consideration of amendments to the Municipal Code to provide a process for determination of public convenience and necessity for alcoholic beverage licensing. Ordinance Creating and adding Chapter 5.09 to the Municipal Code for the purpose of providing a permanent, local process for determination of public convenience and necessity for alcoholic beverage licensing. SUBMITTED BY: Resolution Amending the Master Fee Schedule to establish a fee to cover processing costs for a determination of public convenience n , ,and necessity for alcoholic beverage licensing. Chief of policet~ Director of Planning DI!! City Manager(/~'\G 1;'" REVIEWED BY: Staff has been working on a permanent process for the review of determinations of public convenience and necessity when required for certain alcoholic beverage licenses. In order to obtain additional input from business interests, staff recommends that the City Council continue this item. RECOMMENDATION: That the City Council adopt a motion continuing PCA-96-06 to the meeting of September 10, 1996. ItJ -I -:- COUNCIL AGENDA STATEMENT Item-.1L Meeting Date 8/20/96 ITEM TITLE: Public hearing to consider the vacation of a portion of right-of-way formerly known as Industrial Boulevard Resolution 181/ l.5"ordering the vacation of right-of-way formerly known as Industrial Boulevard north of "L" Street subject to certain conditions. SUBMITTED BY: Director of Public workf' ~ REVIEWED BY: City Manager(;l'-\l, (4/5ths Vote: Yes _ NoX) t,' The owner of the property adjacent to a 0.61 acre parcel of land formerly known as Industrial Boulevard, also formerly used as a Park and Ride Lot by Cal Trans, has requested that the City vacate the parcel (see Exhibit A). In order to process the vacation, Council must first conduct a public hearing, in accordance with the California Streets and Highways Code. During the public hearing, Council may determine that there is no existing or future City interest in the property and that it may be vacated. The resolution will include the condition that the vacation will not take place until the City has been compensated for the interest it may have in the property by the applicant. The compensation for the value of the City's interests in the property will be determined using an appraisal staff will be authorized to obtain as the basis of negotiations with the applicant. RECOMMENDATION: Council conduct the public hearing and adopt the resolution to vacate with the condition that the resolution is not to be recorded until the City is adequately compensated for its interest in the property and that the City Manager and City Attorney, or their designees, be authorized to negotiate the value of the City's interest. BOARDS/COMMISSIONS RECOMMENDATION: No Board or Commission action is required for this matter. DISCUSSION: Backeround: The City entered into a Freeway Agreement with the State of California to allow the construction of Montgomery Freeway (old Highway 101) in 1948, connecting San Diego with the International Border. As part of that agreement, the State was allowed to utilize portions of the City's surface streets to make the interchanges workable and closing other streets at their intersections with the freeway. One of those streets was Industrial Boulevard, then known as Bay Boulevard, East. , I-I Page 2, Item Meeting Date 8/20/96 Around 1955, a grade separation was constructed at the "L" Street interchange. A bridge was built over the rreeway a few hundred feet north of"L" Street (see aerial Exhibit B). In order to reach "L" Street, motorists had to cross the bridge in an easterly direction, then turn south onto Industrial Boulevard. The portion of Industrial Boulevard right-of-way between "K" and "L" Streets was relinquished to the City by the State Highway Commission on April 23, 1952 and was accepted for maintenance by the City in June 1955. When the fteeway was reconstructed to its current state (c. 1974), the old bridge was replaced by a new one to the south, aligned with "L" Street (see aerial Exhibit C). Industrial Boulevard between "K" and "L" Streets was abandoned and all pavement was removed. The right-of-way remained, but was not used. Baker Enterprises, owner of the property immediately west of the Industrial Boulevard right-of-way applied for the vacation of all that abandoned portion. Much research was done to determine if the City could vacate this right-of-way. In January of 1977, a public hearing was held to consider the matter. The vacation issue was filed by Council, pending the outcome of an inquiry to the Metropolitan Transit Development Board (MTDB) for any interest it may have had in the property, since MTDB owned the property to the east ofIndustrial Boulevard. In February of 1979, MTDB responded by saying the land was not needed. The vacation request was renewed by Baker Enterprises in early 1980. Another public hearing was set in March of 1980 to consider the vacation issue. The matter was again filed, because Cal Trans expressed an interest in using it for a Park and Ride Lot. In July of 1980, a 10-year lease agreement was executed between the City and Cal Trans to use the entire stretch of Industrial Boulevard between "K" and "L" Streets as a Park and Ride Lot. The ensuing two years saw court action brought about by Baker Enterprises against the City and the State asserting Inverse Condemnation, contending that the entire street right-of-way was not needed for parking space. In 1982, a settlement was reached and the City vacated the northerly portion, deemed unneeded by Cal Trans for the Park and Ride Lot. Baker Enterprises acquired all but the southerly 450 feet ofthe street, compensating the City in the amount of $60,000 for any rights the City may have had in the northerly section. Title reports issued at the time indicated that it was not clear who owned the underlying fee title. Both the City and Baker Enterprises were listed as possibly owning the underlying fee title and that an actual determination would have to be judicially determined. The southerly 450' x 59' (0.61 ac.) portion was retained for the Park and Ride Lot, with the stipulation that Cal Trans allow free access to Baker Enterprises' property through the Lot. In August of 1989, just prior to the State's lease date of expiration on January 1, 1990, Baker Enterprises again applied to the City to vacate the remaining portion of Industrial Boulevard, submitting a study indicating that the Park and Ride Lot was severely under-utilized and a letter suggesting that the City would benefit more by vacating it and getting the land on the tax rolls. 11- ~ ~ Page 3, Item Meeting Date 8/20/96 Again, Cal Trans was contacted to inquire of its interest in the property. The response was that the City of Coronado was looking into a plan to use Coronado Bridge toll funds to develop a commuter bus line trom the South Bay to the North Island Naval Air Station. It was indicated that this parking lot could playa key role in that plan and CaI Trans would like to extend the lease. However, Coronado did not pursue the shuttle service proposal, and the lease was never extended. Subsequent to 1990, the signs for the Park and Ride Lot were removed trom the treeway and the lot abandoned. MTDB was also contacted in 1989 to determine its interest in using the property. The response was that use of the property was no longer needed by that agency. On June 21 of this year, the firm of Lounsbery, Ferguson, Alton and Peak, acting as agent for Baker Enterprises, submitted an application to vacate the remaining 59' x 450' portion of the old Industrial Boulevard that was used as a Park and Ride Lot. Again, letters of inquiry were sent to CaI Trans and MTDB. Both responses were that the parcel was not needed for their purposes. Findings: After contacting agencies which have expressed interest in the property in the past, staff has determined there is no current or future need for it. It is now an unused, paved parcel and not being maintained (including sweeping) by any agency. There is no lighting in the area, save for street lights at the intersection of"L" Street and Industrial Boulevard. It would be appropriate in this case for the City to release its interest in this parcel for three reasons: 1) Minimize City liability, should any damages occur on the property due to its non-maintained state and/or lack oflighting 2) Relieve the City of maintenance costs which could occur 3) Place the parcel on the Tax Rolls The City possesses an interest in the property which a title company could not define with particularity. While a judicial determination could clarify the precise title, it is staft's recommendation that Council hold a public hearing on the matter as prescribed in the Streets and Highways Code. If, after hearing testimony for and against the matter, it is considered unnecessary for public use, Council may vacate it and release the interest the City has, conditioning that vacation with the requirement offair value compensation for quitclaiming the City's interest. Determination ofthe City's interest could require negotiations between the applicant and the City. The appraisal would be used as the basis of those negotiations. The quitclaim deed will pass whatever interest the City has to the purchaser. The City Attorney's office has reviewed this recommendation and concurs with it. 11- 3 Page 4, Item Meeting Date 8/20/96 With regard to the environmental issues, in September of last year, a Negative Declaration was adopted in conjunction with an initial study involving a General Plan Amendment to bring this area into compliance with the General Plan. The vacation of this parcel is in substantial conformance with that Negative Declaration adopted by Council. If, after the public hearing, Council decides to vacate, appropriate easements will be retained for all utilities lying within the parcel, including the public sewer. Staff also recommends that authorization be granted the City Manager and City Attorney, or their designees, to negotiate the value of the City's interest in the land with the applicant using the appraisal as a basis for the negotiations. FISCAL IMP ACT: The applicant is required to deposit appropriate monies to cover the City's cost for processing the vacation request under its Full Cost Recovery System. An appraisal must be performed by a state-registered appraiser at a cost of approximately $2,000. After that appraisal is done, the vacation may be conditioned to include payment to the City equal to the value of the City's interest in property which will go to the General Fund. Therefore, the fiscal impact would depend on the following scenarios: 1) No Council action, no fiscal impact, since processing costs are covered. 2) If Council adopts the resolution and an appraisal is prepared and the City and applicant cannot agree on a fair amount, the General fund will be lowered by the amount we pay for the appraisal. 3) Vacate property with condition of paying fair market price, which is yet to be determined, plus one-half the appraisal cost (approximately $2,000). Attachments: Exhibit A - Locator map Exhibit B - Aerial view of area 1968 NOT SCANNED Exhibit C - Aerial view of area 1990 . Engineering File No. 0740-70.PV-040 [M:\HOME\ENGINEER\AGENDA\PH PV040.JWH] )1- J-/ "., - ."\. r~ ... 5"-~ -- ~: t~ .~ PAIlK ~ ! 01 R/~;~~ I j 1 c::JC> o ____./ fl 1 f IF[- . II I I I ~- EXHIBIT f:1" )/-5/11-7 I J~ 11- M ~ ~ ~ .~ t?NlIU" BAKER J I 6"~~IlPR/$ES r 1_7 ",. I ~ , ...., "., ;n C/) ~ ...., "., .' , DWN BY: J H DATE: 9/'J'" -- - - ~ II K' 59" ~ \ \~ ~ ~ ~ :-I ~ t) ~ ~ ~ iii ~ !! : ,. ;~ Ii !~ ?\I In: ~ lq , I n 0'( o I~ o o o ~ ~ .-,;: " ~ 51EHRAI --- ~_.- 1- I~ I~ I;;; . . . ilL' "' j I ~_~ ~~ LEGENO W~ - POIlT/ON 70 BE VACATED -. I - -' I - 'FILE No.PV.040 "Jt. ,--WI _-"t; ....;..'fr .....J III ,L- - .;.:. , ~t..;' '/-1' ..... "~: }.T: ~!4 '.~. ~'" ". ; ...;. .- ~. ~ .~;: , .. -' . ~I:'. -- .. .. .. .. .. .. . I Ex . I -- ...._--._.~ ~ ~ ..;::........-- :,L.':-~_:':._ ..~- .'. :-i/.~~:: :. . .., :-"0 ~_."il'" 1.:.. RESOLUTION NO. J 8.1./ L5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE VACATION OF RIGHT-OF -WAY FORMERLY KNOWN AS INDUSTRIAL BOULEVARD NORTH OF "L" STREET SUBJECT TO CERTAIN CONDITIONS WHEREAS, the city Council, at its meeting of August 6, 1996, adopted Resolution No. 18396 declaring its intention to vacate a portion of right-of-way formerly known as Industrial Boulevard north of "L" Street and setting August 20, 1996 as the date for a public hearing thereon; and WHEREAS, in accordance with the California Streets and Highways Code, the Council must hold a public hearing to take testimony for or against the proposed vacation; and WHEREAS, a Negative Declaration was adopted in conjunction with an initial study involving a General Plan Amendment to bring this area into compliance with the General Plan and the vacation of this parcel is in substantial conformance with that Negative Declaration adopted by Council; and WHEREAS, notices required by Streets and Highways Code ~8323 have been posted; and WHEREAS, Tuesday, the 20th day of August, 1996 at 6:00 p.m. in the Council Chambers of the City of Chula vista was fixed as the time and place for hearing any objections to such vacation, and the Council having heard all interested persons; and WHEREAS, from all the Council found that the parcel to present or prospective public use. evidence submitted, the city be vacated is unnecessary for NOW, THEREFORE, the city Council of the City of Chula vista does hereby find, order, determine and resolve as follows: section 1. That city Council does hereby order the vacation of a portion of right-of-way formerly known as Industrial Boulevard north of "L" Street subject to the following conditions: 1. That the vacation occurs only after the City is adequately compensated for its interest in the property. 2. The City Manager and city Attorney, or their designees, are authorized to negotiate with the applicant the value of the City's interest. 1 1/-8 3. Appropriate easements will be retained by the City for all utilities lying within the parcel, including the public sewer. section 2. That the city Clerk is hereby directed to record a certified copy of this resolution with the office of the San Diego County Recorder when the above conditions have been met. Presented by Approved as to form by John P. Lippitt, Director of Public Works ~J/11~-.r:~ a:~% Ann . Moore, cfing ci y Attorney C:\rs\vacation 2 )1- c; COUNCIL AGENDA STATEMENT Item 1.2.. Meeting Date: 8-20-96 ITEM TITLE: Public Hearing: Continue to the September 10, 1996 City Council meeting the consideration of the Otay Ranch Reorganization No. 1 consisting of annexing portions of the Otay Ranch to the City, detaching the Otay Landfill from the City and detaching territory from the Rural Fire Protection Dist . ct. SUBMITTED BY: Special Planning Projects Manager, Otay Ranch Proj REVIEWED BY: City Manager {)L <l (4I5ths Vote: Yes_ No X) Xii I Staff is requesting the hearing on the Otay Ranch Reorganization No. 1 be continued to the September 10, 1996 City Council meeting because a LAFCO required condition of the reorganization has not been met. RECOMMENDATION: That the City Council continue the hearing to September 10, 1996. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In August of 1995, the City Council authorized the filing of a reorganization application with the Local Agency Formation Commission (LAFCO) for the Otay Ranch Reorganization No. 1. The proposed reorganization would annex the majority of the Otay Valley Parcel, the Mary Patrick Birch Estate Ranch House and the Inverted "L" area to the City of Chula Vista. On July 1, 1996, LAFCO approved the reorganization, designated the City as the conducting authority and authorized the City Council to conduct the proceeding to complete the reorganization process. Those proceedings require the Council to hold a noticed hearing on the reorganization. The Council is authorized by LAFCO to approve the change in organization subject to the LAFCO conditions for maintaining fire service to the Otay Landfill (completed July 30, 1996) and County of San Diego receiving the landfill nuisance easements from Village Development and SNMB, Ltd. The continuance is necessary because the County has not yet received the easements from SNMB, Ltd. in a form satisfactory to them. The County Board of Supervisors has to accept the easement before the City Council holds the final reorganization hearing. There is a possibility the September 10 hearing may need to be continued as welL All parties are trying to resolve the issues as soon as possible. We will keep the Council appraised of the situation. FISCAL IMPACT: None. a113anx3.doc 1.2. - / Item No. r)_~..... Council Meeting 8/20/96 TO: The Honorable Mayor and City Council VIA: John D. Goss, city Manager I It/ Managert,' FROM: George Krempl, Deputy City SUBJECT: Outstanding Issues regarding the Pre-Annexation Development Agreement between the city and ~B" LTD. On August 13, 1996, this item was continued to August 20, 1996. Council requested a status report on the outstanding issues. There were two issues discussed with the Planning Commission on August 6, 1996. The issues were the dedication requirement for the SR-125 right-of-way and the issue of whether or not monetary damages are available to either party if there is a breach of the agreement. The Commission supported the staff recommendation 5-0 (i.e., the language contained in the SNMB, LTD. draft development agreement) . Subsequent to August 6, 1996, the applicant and staff were able to agree on compromise language for the SR-125 dedication (see Attachment 1). One objection to the monetary damage exclusion language was that it did not apply to the other development agreements. The exclusion is contained in the EastLake and Rancho del Rey Agreements. In addition, a letter was received from Village Development saying they were willing to be subject to the new provision (see Attachment 2). This is apparently acceptable to the applicant to resolve this equity issue. The second issue is the actual language of the monetary damage provision. Attachment 3 is the staff proposal. Attachment 4 is language the applicant would like added. The language was received late on August 12, 1996 and raised a number of issues for the city Attorney's Office which require additional research. Staff will be meeting with SNMB, LTD. representatives prior to August 20, 1996 in an attempt to reach agreement on the language of the default provision and a monetary damage exclusion. GK:mab J3C-/ -,' Attachment 1 7.2.1 Dedication of Land for SR-125. Developer agrees to dedicate land for right-of-way purposes and property owned by the Developer that is reasonably necessary for the SR-125 configuration selected by CALTRANS and depicted: (1) generally in the GDP or (2) that alignment identified as the Brown Field Modified Alignment which is generally depicted in the SR-125 draft Environmental Impact Report/statement and as revised in the Final Environmental Impact Report/statement to respond to engineering, design, environmental and similar constraints. Notwithstanding the foregoing, should CALTRANS not select alignment (1) or (2) above, the Developer shall dedicate land for any such alternate SR-125 configuration only on the condition that the city agree to relocate any land uses displaced by such alternate Freeway alignment. city agrees that in the event city shall negotiate with California Transportation Ventures (CTV) or other toll road builder any participation or advantages to City that city shall share such rights with subsequent owner/resident of the property. J 3C- :l R..X; 13 '96 11: 42R'1 1.ESTB'1,( a:F'ITR..: P.2/3 Village DEVBLOPMENT Attachment 2 Q..liIJI _ ,.,.,..,,_...11/IoI riMa lY74 August 12. 1996 Sat..;..~k (61') SUo$61Z .. u.s. JltIU Mr. John Go,.. City ~"'~IV" City ofChuIa VIIta 276 4th Avenue C1ula Vi... CaIifomI& 91910 Dar Jolin: I UIIderItInd that in connection with the City', neaotlatiOlll with SNMB CODOIII'IIiDs their Dtve10pment Aaroomont. iliuM have booAl'IiJod QOJIC6j aiDs the iaterpretation of 1110 clamasos lOCtIon Or the Development Aarecm= lnvo1vlq VIIIap ])eveIuyIlll'Dt. SpcdfiOl11y, the City be1ieYeI tho current clamaaet 1mauaae CODt,,;IW! in all of the Otay Raneh reIatod DtveIopmeDt /aafeOIIIOI1tI pormit illllIIICtive re1iet; but doeI DOt provide for moDctary damaaoI except tor JltilPtlnn com and attorII8y',!MI. I agree with SNMB that the current ~ II IIIIbJauous and UDdmtand the City desire to .1Hnift.... Ill'J ambisuitY. I fUrther recopizo that c\r-torioa to other Otay Ranch DoveIopmont Ap-em. lOOk I "1m! playiq field." To usilt in your efforts to dPnIncto any amblsuitY. UId to tIIIIUre that all Development ApemeotB are tnatod equally, VIIJaae DeveIopmont would be wiIIiDa to ~ the ezIatIng ~ to cIariiY the damases IKtioDl. Specifically. If the SNMB Development Agreement oontai". IUd1 1a"8'1ege. we would be wU1iaa 10 moditY Soc:tion 11.2.4 to read u t'ollowa: 11.2.4 AI other remecJiel at law or in equity which are COIIP,.ent with tho proviJiODl of'tbia Aareemart are aVlllable to City UId Owucr to punue In the eYeIIt there Is a bJwagh ..-..IdcoI h_. lIelthel' Dam ,!tall h_ thl nmedY of moneta... d...... ....htlt the 8th.-.. ac:eDt for an awar4 of IltlntIGli Mitt ADd attorn"'. 'MI. :;. ."'" :1..~~:. 1197511 CIaIao acN..... 1"." Diap, C\ fZISO 1\>1. 619.Up..a9U..... 6UMS9-+t64 ". " .~..#\ ..... "....,....,. .~,., ~., ..'~' \U )' ,'", 4" .,' I' . I~' ,.. l., .... I I ".<t' , ., {;/,..... \::~:;.i . , . :~:. "'~:~: ,~..t.;... .~~I .....\ ....J.. ." '1-' ............,.'f/.. "';. ~ ... -....~:. -.... '.A ....., I I .,...,~. ., ...,..,..... + .., ,.:~:;~:;::'I...t.::~:>. . .' . 1"5C. - 3 r:u; 13 '96 11:42R'\ !.ESTER'( CWITI'L Mr. 10hn Goo August 12, 1996 Page 2 Should you have any queItIona or concsnl. pleuc do DOt beIitatc to give me & call. SUx.eIy, IOKIjem OQ: George Krempl 1erry lunriska AIm Moore L"tim\1fH\hr :~lJI'12.4oc1 13C - 'i P.3/3 Attachment 3 staff has been unable to reach an agreement with SNMB, LTD. regarding the following provision of the SNMB Development Agreement (the disputed phrase is underlined): 11.2.4 All other remedies at law or in equity which are consistent with the provisions of this Agreement are available to city and Owner to pursue in the event there is a breach provided. however. neither party shall have the remedy of monetary damaqes aqainst the other. except for an award of litiqation costs and attorney's fees. 13 ~ - 5 Ub-1L-~b U4:JirM ~KUM ~ou&K JU IJUUL4b:Jb:J:JlJ J L rUULI UUL . . Attachment 4 ADD TO 11.2.4 TO SNMB [AND OTHER] AGREEMENTS: The parties acknowledge and a,ree that. in light of the removal of the monetarY damages .",medy, either party's remedies at law shall be conclusively presumed to be inadequate, and iJ\junction, specific perfo~nce, mandate, or any other equitable remedy, shall be available. In the event that [SNMB] claims a breach of this Agreement in cormcction with an action in wbicb the City bas discretion, but must act reasonably, [SNMB] may bring an action for breach of contract, and sba11 not be limited to the remedy of Code of Civil Procedure section 1094.S, nor the evidentiary limitations of said section. -1- 13(! -(, .j;!~ THIS PRE-ANNEXATION DEVELOPMENT AGREEMENT ("Agreement") is , .3 made effective on the date hereinafter set forth below by and among the CITY OF CHULA VISTA ("City") and JEWELS OF CHARITY ("Jewels"), who agree as follows: PRE-ANNEXATION DEVELOPMENT AGREEMENT 1. RECITALS. following facts: This Agreement is made with respect to the 1.1 Owner. The owners of the properties subject to this Agreement (hereinafter collectively referred to as "Owner" or as "Developer") are as follows: 1.1.1 Jewels is the owner of approximately 475 acres of undeveloped real property ("the Jewels Property") in the unincorporated area of the county, described in Exhibits "A" and "C", attached hereto and incorporated herein by this reference. Portions of Jewels ProDerty are located in Villaaes 9 and 10 of the otay Ranch ProDerty. 1.1.2 Jewels (the "property") larger area commonly known, and referred to Otay Valley Parcel of Otay Ranch." 1. 2 ci tv. The city of Chula vista is a municipal corporation with Charter city Dowers afla afl incorporated ~ within the County. is part of a herein, as "the 1.3 Code Authorization and Acknowledaments. 1.3.1 City is authorized pursuant to its charter. self-rule Dowers and California Government Code sections 65864 through 65869.5 to enter into development agreements for the purpose of establishing certainty for both City and owners of real property in the development process. 1.3.2 Government Code section 65865 expressly authorizes a city to enter into a development agreement with any person having a legal or equitable interest in real property in unincorporated territory within that city's sphere of influence for the development of property as provided in the Development Agreement Law i provided that the agreement shall not become operative unless annexation proceedings annexing the property to the city are completed within the time specified by the agreement. 1.3.3 city enters into this Agreement pursuant to the provisions of the California Government Code, its home- rule powers, and applicable City ordinances, rules, regula- tions and policies. 1.3.4 City and Owner intend to enter into this aareement for the followinq DurDoses: ac]cfle\Jlea~e I 1.3.4.1 To This A~rcemeflt assures adequate public facilities at the time of development. -1- 1.3.4.2 12 TRie AEjreeJl\eflt. assures development in accordance with city's capital improvement plans. 1.3.4.3 This A~FeemeRt eeRstitatea a earreRt cxereise af Gi~y's peliee ~e~:ers ~ ~o provide certainty to Owner in the development approval process by vesting the permitted use(s), density, intensity of use, and the timing and phasing of development as described in the Development Plan, which is defined in Paragraph 2.4 of this Agreement, in exchange for Owner's entering into this Agreement and for its commitment to support the Annexation described below. 1.3.4.4 This AEjreemefit. ..1ill achievement of City growth management goals tives. 12 permit and obj ec- 1.3.4.5 TRie ^Ej~eemefl~ will 12 allow city to realize significant economic, recreational, park, open space, social, and public facilities benefits for the city, some of which are of regional significance. 1.3.4.6 assure that the City in the property tax development, sewer, TRie ^Ej~eell\ef\t. ",Iill 12 provide and receive sales tax revenues, increase base, residential housing and other water and street facilities. 1,3.4.7 TRis AEjreemeflt ~ 12 provide and assure that the city receives public facilities in excess of project generated impacts and such facilities shall be of supplemental size, number capacity or length, which shall be provided earlier than could be provided either by funds from the city or than would strictly be necessary to mitigate project related impacts at any development phase. 1.3.4.8 TRie p.Ejreemeflt. ',lill 12 provide the city the developer's support to secure annexation of the lands depicted in Exhibit "B". 1. 3.4.9 TRie p.Ej~eemeflt. ',:ill 12 enable the city to secure title to the land within the boundaries of the Property necessary to complete the Chula vista greenbelt system as defined in the Chula vista General Plan. 1.3.4.10 TRie AEj~ee1l\en~ '.Jill 12 assure the city that the Developer will dedicate rights-of-way to the city for SR-125, a route which, when constructed, will sUbstantially alleviate congestion on 1-805 and 1-5, and also will facilitate the economic development of Chula vista. 1.3.4.11 Because of the complexities of the financing of the infrastructure, park, open space, and other dedications, and regional and community facilities, and the significant nature of such facilities, certainty in the development process is an absolute necessity. The -2- phasing, timing, and development of public infrastructure necessitate a significant commitment of resources, planning, and effort by Owner for the public facilities financing, construction, and dedication to be success- fully completed. In return for Owner's participation and commitment to these significant contributions of private resources for public purposes and for Owner's consent to the Annexation described below, city is willing to exercise its authority to enter into this Agreement and to make a commitment of certainty for the development process for the Property. 1.3.4.12 In consideration of Owner's agreement to provide the significant benefits and for Owner's consent to the Annexation described below, city hereby grants Owner assurances that it can proceed with develop- ment of the Property in accordance with city's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement subiect to section 5.2.1 below. Owner would not enter into this Agreement or agree to provide the public benefits and improvements described in this Agreement if it were not for the commitment of city that the Property subject to this Agreement can be developed in accordance with City's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement subiect to section 5.2.1 below. 1.4 The Annexation. The city has applied to the Local Agency Formation commission ("LAFCO") for annexation of Sphere of Influence planning Area 1 liThe otay parcel", Planning Area 2 "Inverted L" and the Mary Patrick Estate Parcel (see Attachment "B") . 1.5 Sphere of Influence. A city application is pending before LAFCO to have the otay Valley Parcel included within City's sphere of influence. On February 5, 1996 the Local Agency Formation Commission approved the inclusion of approximately 7,600 acres into the city Sphere of Influence (Sphere of Influence Planning Area 2 and the northern two thirds of planning Area 1), and designated the otay River Valley an Village 3 as special study areas. 1.6 planninq Documents. On October 28, 1993, City and county adopted the otay Ranch General Development Plan/Subregional Plan (lithe GDP") which includes the otay Ranch village phasing Plan, Facility Implementation Plan, Resource Management Plan and service Revenue Plan, for approximately 23,000 acres of the otay Ranch, including the otay Valley Parcel and the Jewels property. 1. 7 Owner Consent. City desires to have the cooperation and consent of Owner to include the Property in the Annexation in order to better plan, finance, construct and maintain the infra- structure for the otay Valley Parcel; and Jewels desires to give their cooperation and consent, provided that they obtain certain assurances, as set forth in this Agreement. -3- 1.8 city Ordinance. Auqust . 1996 is the date of adoption by the City Council of Ordinance No. 2679 approving this Agreement. The ordinance shall take effect and be in full force on the effec~ive date of Annexation. 2. DEFINITIONS. otherwise requires: In this Agreement, unless the context 2.1 "Annexation" means the proposed annexation of that portion of the otay Ranch into the City as depicted on Exhibit "i.B" . 2.2 "city" means the City of Chula Vista, in the County of San Diego, state of California. 2.3 "county" means the County of San Diego, State of California. 2.4 "Development Plan" means the GDP. 2.5 "GDP" means the General Development Plan/ Subregional Plan for the otay Ranch, described in Paragraph 1.6, above. 2.6 "Owner" or "Developer" means the person, persons, or entity having a legal and equitable interest in the Property, or parts thereof, and includes Owner's successors-in-interest. 2.7 "Project" means the physical development of the private and public improvements on the Property as provided for in the Existing Project Approvals and as may be authorized by the City in Future Discretionary Approvals. 2.8 "Property" means the real property described in Paragraph 1.1.1. 2.9 The "Term" of this Agreement means the period defined in Paragraph 3, below. 2.10 "Builder" means developer to whom Developer has sold or conveyed property within the Property for purposes of its improvement for residential, commercial, industrial or other use. 2.11 "CEQA" means the California Environmental Quality Act, California Public Resources Code section 21000, et seq. 2.12 "City council" means the City of Chula vista City council. 2.13 "commit" or "committed" means all of the following requirements have been met with respect to any public facility: 2.13.1 For a public facility within the city's jurisdictional boundaries and a responsibility of the develop- er. 2.13.1.1 All discretionary permits required of the Developer have been obtained for construction of the public facility; -4- 2.13.1.2 Plans for the construction of the public facility have all the necessary governmental approvals; and 2.13.1.3 Adequate funds (i.e., letters of credit, cash deposits, performance bonds or land secured public financing, including facility benefit assessments, Mello-Roos assessment districts of similar assessment mechanism) are available such that the City can construct the public facility if construction has not commenced within thirty (30) days of issuance of a notice to proceed by the Director of Public Works, or construction is not progressing towards completion in a reasonable manner as reasonably deemed by the Director of Public Works. 2.13.2 For a public facility ,within the City's jurisdictional boundaries, but to be provided by other than Developer. 2.13.2.1 Developer's proportionate share of the cost of such public facility as defined in the existing Project Approvals and Future Discretionary Approvals has been provided or assured by Developer through the payment or impositions of development impact fee or other similar exaction mechanism. 2.13.3 For public facility not within city's jurisdictional boundaries: the cost existing Approvals Developer of Public 2.13.3.1 Developer's proportionate share of of such public facility as defined in the Project Approvals and Future Discretionary has been provided for or otherwise assured by to the reasonable satisfaction of the Director Works. 2.14 "Development Impact Fee (DIF)" means fees imposed upon new development pursuant to the City of Chula vista Development Impact Fee Program, for example, including but not limited to the Transportation Development Impact Fee Program, the Interim SR-125 Development Impact Fee Program, the Salt Creek Sewer DIF and the Public Facilities DIF. 2.15 "Existing Project Approvals" means all discretionary approvals affecting the Project which have been approved or established in conjunction with, or preceding, the effective date consisting of, but not limited to the GDP, the Chula vista General Plan, the otay Ranch Reserve Fund Program adopted pursuant to Resolution 18288, and the Phase I and II Resource Management Plan (RMP) , as may be amended from time to time consistent with this agreement. 2.16 "Final Map(s)" means any final subdivision map for all or any portion of the Property other than the Superblock Final Map ("A" Maps). -5- 2.17 "Future Discretionary Approvals" means all permits and approvals by the city granted after the effective date and excluding existing Project Approvals, including, but not limited to: (i) grading permits; (ii) site plan reviews; (iii) design guidelines and reviews; (iv) precise plan reviews; (v) sUbdivisions of the property or re-subdivisions of the Property previously subdivided pursuant to the Subdivision Map Act; (vi) conditional use permits; (vii) variances; (viii) encroachment permits; (ix) sectional Planning Area plans; (x) Preserve Conveyance Plan and (xi) all other reviews, permits, and approvals of any type which may be required from time to time to authorize public or private on- or off-site facilities which are a part of the Project. 2.18 "planning commission" means the Planning commission of the city of Chula Vista. 2.19 "Preserve Conveyance Plan" means a plan that will. when adoDted. sets forth policies and identify the schedule for laRa te ~e transfer~ of land and/or fees to be paid to insure the orderly conveyance of the otay Ranch land to the Preserve Owner Manager. The purpose of the plan is to fulfill the obligations to convey resource sensitive land, per the criteria contained in the phase I and II Resource Management Plans and to mitigate environ- mental impacts of the otay Ranch Project. 2.20 "public Facility" public facilities described Implementation Plan. or "public Facilities" means those in the otay Ranch Facility 2.21 "subdivision Map Act" means the California SUbdivision Map Act, Government Code section 66410, et seq., and its amendments as may from time to time be adopted. 2.22 "substantial Compliance" means that the party charged with the performance of a covenant herein has sufficiently followed the terms of this Agreement so as to carry out the intent of the parties in entering into this Agreement. 2.23 "Threshold" means the facility thresholds set forth in the city's Municipal code section 19.19.040. 3. nE,M. This Agreement shall become effective as a development agreement upon the effective date of the Annexation ("the Effective Date"); provided, however, that if the Annexation does not occur on or before January 1, 1997, this Agreement shall be null and void. Any of the foregoing to the contrary notwith- standing, from the date of first reading of the ordinance approving this Agreement, and unless or until this Agreement becomes null and void, Owner shall be bound by the terms of Paragraph 4. The Term of this Agreement for purposes other than paragraph 4 shall begin upon the Effective Date, and shall continue for a period of twenty (20) years ("the Term"). The term shall also be extended for any period of time during which issuance of building permits to Developer is suspended for any reason other than the default of Developer, and for a period of time equal to the period of time during which any action by the city or court action limits the processing of future discretionary -6- approvals, issuance of building permits or any other development of the property consistent with this Agreement. 4. OWNER CONSENT TO ANNEXATION. Owner hereby consents to and shall cooperate with the applications of city to declare that the otay valley Parcel is within city's sphere of influence and to annex the otay Valley Parcel to the city; provided, however, that Owner may withdraw such consent and withhold further cooperation if the city, prior to the Effective Date, adopts rules, regulations, ordinances, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments or fees applicable to and governing development of the Property which are inconsistent with, or render impractical development of the property according to, the Development Plan or the additional commitments of city set forth in paragraphs 5.1.1 through 5.1.5 5.1.8, below. owner also aarees not to challenae the annexation of the otav Valley Parcel into the city. 5. VESTED RIGHTS. Notwithstanding any future action or inaction of the city during the term of this Agreement, whether such action is by ordinance, resolution or policy of the city, Owner and Developer shall have a vested right, except as may be otherwise provided in this section 5, to construct the Project in accordance with: 5.1 Existing project Approvals, subject to the following reauests for modifications. if approved bv the city: 5.~.1 cit.y SR~ll reasel'1aelj' ee~sia~ ~:" i:: :~::~::~e: :1'1~ ',lith p;e;er ~ virel'1R\e~;al ~~e~l, : r~::e:t. :: ~:e~~~s~ = r~;~~nst.ial d'~lsi t.y. ef :~!.~~g<:~ :' ~! ~:: 8, :~ 1.1: r i.dcnt!: un1 ts ~reYl.aaa l.fl '."l.llage J 19,. the Ce~R~Y' aaep~ea CDr. S.1. 2 eit.y sRall rea5eRa131y ee~::i~er ~R, ~t.: :;;:~:;i:: ~: :rae;ss ;Ii t.R preper ':,n.~~~n;.~~ :~~;c~: : ~e-;::: ~~ ~;;t~i ~c ~i~aFY la.:~ ~se ~:::::;~: fer Y;I~:~: :er~~:, ~:~=:~e:tde;:r:r:::l, i !':~~~;:~~;' t.R:%~::::~ :~E~r~~~:, ~:: ::::: =:~:~;:~~i i~e ~~{~~~:~1~1 ~1'1~:;~~;~!;L in a ~eReFal pIa" ameRsmeflt. 5.1.35.1.1 If the interchange improvements at otay Valley Road and 1-805 are needed to serve the project, the city will hold appropriate hearings to consider an amendment to amens its Transportation phasing plan (TPP) and Development Impact Fee (DIF) Program to include said improve- ments as may be deemed appropriate bv the city to accommodate the project phasing. The city agrees to reasonably cooperate and work with CALTRANS to complete plans for said ~ inter- change improvement plal'19. 5.1.i5.1.2 city shall initiate contact and diligently pursue discussions with the county of San Diego and the city of San Diego to determine the number, scheduling and financing of the otay River road and bridge crossings. -7- S.1.S5.1.3 city shall allow the owner for purposes of processing entitlements to proceed with planning of the property on a first come first served basis, with other prop~rties in the area of the Annexation. In addition, if necessary the City shall, with proper environmental review, consider in its discretion an amendment to the village phasing Plan to facilitate the planning and development of the properties covered by this Agreement. 5.1.65.1.4 To the extent any of the foregoing commitments of city are embodied in changes to the Development Plan or the rules, regulations, ordinances, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments, and fees applicable to and governing development of the Property, whether adopted before or after the Effective Date, such changes shall be deemed applicable to the property without change to this Agreement. S. 1. 75.1. 5 city shall diligently process any amendments, applications, maps, or other development applications. may make such modifications or amendments to the xistin o'ect A rova s Future isc et'o a ADDrovals, as may be ordered bv a court of comDetent ;urisdiction, in an action in which teh DeveloDer is a Dartv or has had an ortun't to a ear or has been rovided noti e of suc action bv the citv. ;,1.8 eity sRal1 reasenaaly eensiaer ana a~l~: ~~~i;~e:re2~e;:, a ,re:::s: ti~ e~::n~ve~~e !.~::~;:I>::~r::::~t:i ::::!;:,;::i~~e t~t areas e~ee een~ia~~~~ :~~~~;;;;;~:!~~ 1. 11 19e. ~:ele~ee1. i..:1t.fisat. S1E)Rl.f1eaf\t., \inml.'tJ.f:Jaele cft~ireftmeRt.al impaetc. 5.2 DeveloDment of ProDertv. The development of the Property will be governed by this Agreement and Existing Project Approvals and such development shall comply and be governed by all rules, regulations, policies, resolutions, ordinances, and standards in effect as of the Effective Date subject to the provisions of section 5.2.1 below. The city shall retain its discretionary authority as to Future Discretionary Approvals, provided however, such Future Discretionary Approvals shall be regulated by the Existing Project Approvals, this Agreement, and city rules, regulations, standards, ordinances, resolutions and policies in effect on the Effective Date of this Agreement and subject to section 5.2.1. Notwithstanding the foregoing, the city may make such changes to the city's Growth Management Ordinance applicable to the Project as are reasonable and consistent with the purpose and intent of the existing Growth Management Ordinance and which are generally applicable to all private projects citywide or east of 1-805 or within a specific benefit, fee or reimbursement district created pursuant to the California Government Code. -8- 5.2.1 New or Amended Rules. Requlations. policies. standards. Ordinances and Resolutions. The city may apply to the Project, including Future Discretionary Approv- als, new or amended rules, laws, regulations, policies, ordinances, resolutions and standards generally applicable to all private projects east of 1-805 or within a specific benefit fee or reimbursement district created pursuant to the California Government Code. The application of such new rules, or amended laws, regulations, resolutions, policies, ordinances and standards will not unreasonably prevent or delay development of the property to the uses, densities or intensities of development specified herein or as authorized by the Existing Project Approvals. The city may also apply changes in city laws, regulations, ordinances, standards or policies specifically mandated by changes in state or federal law in compliance with section 13.3 herein. 5.2.2 Developer may elect with city's consent, to have applied to the project any rules, regulations, policies, ordinances or standards enacted after the date of this Agreement. Such an election has to be made in a manner consistent with section 5.2 of this Agreement. 5.2.3 Modifications to Existinq Pro;ect At>t>rovals. It is contemplated by the parties to this Agreement that the city and Developer may mutually seek and agree to modifications to the Existing Project Approvals. Such modifications are contemplated as within the scope of this Agreement, and shall, upon written acceptance by all parties, constitute for all purposes an Existing Project Approval. The parties agree that any such modifications may not constitute an amendment to this Agreement nor require an amendment to the Agreement. 5.2.4 Future Discretionarv At>t>rovals. It is contemplated by the parties to this Agreement that the city and Developer may agree to Future Discretionary Approvals. The parties agree that any such Future Approvals may not consti- tute an amendment to this Agreement nor require an amendment to the Agreement. 5.3 Dedication and Reservation of Land for ub ic Purt>oses. Except as expressly required by this Agreement or the Existing project Approvals and Future Discretionary Approvals (excepting dedications required within the boundaries of any parcel created by the subsequent subdivision of the property as required by the SUbdivision Map Act), no dedication or reservation of real property within or outside the property shall be required by city or Developer in conjunction with the project. Any dedications and reservations of land imposed shall be in accordance with section 7.2 and Section 7.8 herein. 5.4 Time for construction and Comt>letion of pro;ect. Because the California supreme Court held in Pardee construction Comt>anv v. citv of Camarillo (1984) 27 Cal.3d 465, that the failure of the parties to provide for the timing of development resulted in a later-adopted initiative restricting the timing of development to prevail over such parties' Agreement, it is the intention of the -9- parties to this Agreement to cure that deficiency by specifically acknowledging that timing and phasing of development is completely and exclusively governed by the Existing Project Approvals, including the Chula vista Growth Management Ordinance. The purpose of the Chula vista Growth Management Ordinance is to "control the timing and location of development by tying the pace of development to the provision of public facilities and improvements to conform to the city's threshold standards. " (Municipal Code section 19.09.010A.7) The findings in support of the Growth Management Ordinance conclude that the ordinance "does not affect the number of houses which may be built." (Municipal Code Section 19.09.010B.3) Therefore, the parties acknowledge that the Chula vista Growth Management Ordinance completely occupies the topic of development timing and phasing and expressly precludes the adoption of housing caps, urban reserves or any other means by which the rate of development may be controlled or regulated. The City agrees that the Developer shall be entitled to, apply for and receive all permits necessary for the development of property, consistent with the Growth Management Ordinance, Existing Project Approvals, Future Discretionary Approvals and this Agreement. 5.5 Benefit of Vestinq. Nothing in this Agreement will be construed as limiting or impairing Developer's vested right, if any, to proceed with the development and use of the Property pursuant to the Federal and State constitutions, and pursuant to statutory and decisional law. 5.6 Vestinq of Entitlements. All rights conferred by this Agreement vest with the Effective Date hereof. The approval of Future Discretionary approvals shall not be deemed to limit Developer's rights authorized by this Agreement, and. once such approvals are obtained they shall be vested to the same extent as the Existing Project Approvals. 6. DEVELOPMENT PROGRAM. 6.1 processinq of Future Discretionarv Approvals. city will accept and diligently process development applications and requests for Future Discretionary Approvals, or other entitlements with respect to the development and use of the Property, provided said applications and requests are in accordance with this Agreement. city costs for processing work related to the Project, including hiring of additional City personnel and/or the retaining of professional consultants, will be reimbursed to city by Developer. 6.2 Lenqth of Validitv of Tentative Subdivision Maps. Government Code section 66452.6 provides that tentative subdivision map(s) may remain valid for a length up to the term of a Develop- ment Agreement. The city agrees that tentative subdivision map(s) for the property shall be for a term of six (6) years and may be extended by the City council for a period of time not to exceed a total of twenty (20) years and in no event beyond the term of this Agreement. 6.3 Pre-Final Map Development. If Developer desires to do certain work on the Property after approval of a tentative map (for example, grading) prior to the recordation of a final map, it -10- may do so by obtaining a grading and/or other required approvals from the city which are authorized by the city prior to recordation of a final map. Such permit shall be issued to Developer, or its contractor, upon Developer's application, approval, and provided Developer posts a bond or other reasonably adequate security required by city in an amount to assure the rehabilitation of the land if the applicable final map does not record. 6.4 Final Maps. 6.4.1 "A" Maps and "B" Maps. If Developer so elects, the city shall accept and process a master subdivision or parcel map ("A" Map) showing "super Block" lots and backbone street dedications. "Super Block" lots shall be consistent with the GDP and subsequent Sectional Plan Area plans, and shall not subdivide land into individual single- family lots. All "super Blocks" created shall have access to dedicated public streets. The City shall not require improve- ment plans in order to record a final map for any "A" Map lots, but the city shall require bonding for the completion of backbone facilities prior to recording in an amount to be determined by the City. Following the approval by City of any final map for an "A" Map lot and its recordation, Developer may convey the "super Block" lot. The buyer of a "Super Block" lot shall then process final improvement plans and grading plans and a final map ("B" Map) for each "Super Block" lot which the city shall process. The "B" Maps shall be in substantial conformance with the related approved "A" Map. In the instance of the multi-family dwelling unit areas, a separate tentative subdivision map may be submitted to the city and the "B" Map(s) for these areas may be submitted to the city after the City Planning commission approves said tentative subdivision map. 6.4.2 Recordation of Final Subdivision Map in Name of Builder or Third Partv. Developer may, if it so elects, convey to a Builder or third party any "super block" lot(s) shown on the recorded Superblock Final Map. In such case, the Builder or third party will (i) process any neces- sary final improvement and grading plans and a final map for each such "super block" lot, which map city shall accept and process as subsequent phases in a multi-phase project, (ii) enter into a subdivision improvement agreement with city with respect to the subdivision improvements which are required for such super block lot, and (iii) provide security and insurance satisfactory to city for the completion of the subdivision improvements. 6.4.3 Recordation of Final Subdivision Map in Developer's Name: Transfer of Obliqations Under SUbdivision Improvement Aqreementls). If Developer so elects, it may defer the conveyance of any super block lot to a Builder or third party until after the final map of such super block lot has been recorded. If Developer elects to proceed in this manner, it will enter into city's standard subdivision improvement agreement(s) with city for the improvements required as a condition to the approval of such map(s). Upon sale to a Builder or third party, if such Builder or third -11- party assumes Developer's obligations under the improvement agreement and provides its own security and insurance for the completion of the subdivision improvements as approved by the city, Developer shall be released from liability under the subdivision improvement agreement(s) and Developer's security shall be released. 6.4.4 Transfer of Riqhts and Obliqations of Development. Whenever Developer conveys a portion of the Property, the rights and obligations of this Agreement shall transfer in accordance with section 15 herein. 7. DEVELOPER'S OBLIGATIONS. 7.1 condition to Developer's Obliqations to Dedicate. Fund or Construct Public Facilities. Developer agrees to develop or provide the public improvements, facilities, dedications, or reservations of land and satisfy other exactions conditioning the development of the Property which are set forth hereinbelow. The obligations of the Developer pursuant to this Agreement are conditioned upon: (i) the City not being in default of its obliga- tions under this agreement; and (ii) the city not preventing or unreasonably delaying the development of the property; and (iii) the Agreement having not been suspended in response to changes in state or federal law; and (iv) the city's obligations having not been suspended pursuant to Section 13.2. 7.2 Dedications and Reservations of Land for public Purposes. The policies by which property will be required to be reserved, dedicated or improved for public purposes are identified in the Existing Project Approvals. A more precise delineation of the property to be preserved, dedicated or improved for public purposes shall occur as part of Future Discretionary Approvals, consistent with the Existing Project Approvals. 7.2.1 Dea~eati6R af LaRa feF ER 125. DcvclepcF a~Yecs te dcElieate laRa fer FieJRt af tJay fJ\;lY19sscs aRa pre1gert.y e..lI~cel 13y the DEveleper that is l'eas8Raely f\ceessary fer t.he ER 125 eeRfi~HratieR ~ha~ is ~cRerally acpietca in thc ~R 12S draft ERvirsRmcRtal Im19aet RC19srtjctatcmeRt aRa as l'e~i6Ca iR the FiRel EnvirsRmeRtal Im19aet. RepeFt/ ~tat.e1flCRt t.e reapeRs te Cf\~iftECrifl!, aeei!R, eRvirsRmeRt.al aRB similar eSRstraiRt,e. The dedieat.ieR5 shall Be t.e the city SF BY an alternate methea aeeeptasle te t.he Gity at. Bash time as rc~ue5tea BY the eity. ci t:y afJreea 'that iR thc e-,e:Rt ei ty shall ReEjstiate -_-i tft califerRia Trafl.aper~a'tieR VeRt:~ree CCTV) aF ather t:ell reas h~ilder aft} par~ieipa'tien SF aBV8R'taEjea ~S Ci~y ~l=1at: eity Bhall saare Baeh rights -.titft e\iBae~U&:Rt a-.1Rcr/re:siaefrE af 'Ehe prs13erty. 7.2.2 PrcservE. GeRVE.";aACC PlaR. 'rhe G1 t.y aRB 'the Dcveleper aRall m1it\:ilall}~ a~rce \ipS!; a Prcaerve C8flveyaRee rlaR. The City shall iR ~eea faith eensiaer fer aaapt.isR s\ish a plaR aRa the Devcleper chall eeR~ey prepcrty aRaler fees in lieu af lana as set fert.h in aaeh rlaR. -12- 7.3 Growth Manaqement ordinance.. Developer shall commit the public facilities and city shall issue building permits as provided in this section. The City shall have the right to withhold the issuance of building permits any time after the City reasonably determines a Threshold has been exceeded, unless and until the Developer has mitigated the deficiency in accordance with the city's Growth Management Ordinance. Developer agrees that building permits may be withheld where the public facilities described in the Existing Project Approvals/- Future Discretionary Approvals required for a particular Threshold have not been committed. In the event a Threshold is not met and future building permit issuance may be withheld, the notice provisions and procedures contained in section 19.09 .100C of the Municipal Code will be followed. In the event the issuance of building permits is suspended pursuant to the provisions herein, such suspension shall not constitute a breach of the terms of this Agreement by Developer or citv. Furthermore, any such suspension which is not caused by the actions or omissions of the Developer, shall toll the term of this Agreement as provided for in section 16.12 of this Agreement, and suspend the Developer's obligations pursuant to this Agreement. 7.3.1 Required Condemnation. The City and Developer recognize that certain of the public facilities identified in the Existing Project Approvals/Future Discretionary Approvals and required to comply with a threshold are located on properties which neither the Developer nor the city has, or will have, title to or control of. The City shall identify such property or properties and at the time of filing of the final map commence timely negotiations or, where the property is within the city's jurisdiction, commence timely proceedings pursuant to Title 7 (commencing with S 1230.010) of Part 3 of the Code of Civil Procedure to acquire an interest in the property or properties. Developer's share of the cost involved in any such acquisition shall be based on its proportionate share of the public facility as defined in the Existing Project Approvals/Future Discretionary Approvals. Nothing in this Agreement shall be deemed to preclude the City from requiring the Developer to pay the cost of acquiring such off-site land. For that portion of the cost beyond the Developer's fair share responsibility, the city shall take all reasonable steps to establish a procedure whereby the develop- er is reimbursed for such costs beyond its fair share. 7.3.2 Information Reqardinq Thresholds. Upon Developer's written requests of the City Manager, the City will provide Developer with information regarding the current status of a Threshold. Developer shall be responsible for any staff costs incurred in providing said written response. 7.4 Improvements Required bv a Subdivision Map. Asmay be required pursuant to the terms of a subdivision map, it shall be the responsibility of Developer to construct the improvements required by a subdivision map. Where Developer is required to -13- construct a public improvement which has been identified as the responsibility of another party or to provide public improvements of suppl~mental size, capacity, number or length benefiting property not within the subdivision, city shall process a reim- bursement agreement to the Developer in accordance with Article 6 of Chapter 4 of the Subdivision Map Act, commencing with Government Code section 66485, and section 7.5, below. 7.5 Facilities Which Are the Obliaations of Another Partv. or Are of Excessive Size. CaDacitv. Lenath or Number. Developer may offer to advance monies and/or construct public improvements which are the responsibility of another land owner, or outside the city's jurisdictional boundaries, or which are of supplemental size, capacity, number or length for the benefit of land not within the Property. city, where requesting such funding or construction of oversized public improvements, shall consider after a public hearing, contemporaneous with the imposition of the obligation, the formation of a reimbursement district, assessment district, facility benefit assessment, or reimbursement agreement or other reimbursement mechanism. 7.6 Pioneerina of Facilities. To the extent Developer itself constructs (Le., "pioneers") any public facilities or public improvements which are covered by a DIF Program, Developer shall be given a credit against DIFs otherwise payable, subject to the city's Director of Public Works reasonable determination that such costs are allowable under the applicable DIF Program. It is specifically intended that Developer be given DIF credit for the DIF Program improvements it makes. The fact that such improvements may be financed by an assessment district or other financing mechanism, shall not prevent DIF credit from being given to the extent that such costs are allowed under the applicable DIF Program 7.7 Insurance. insured for all insurance Project as pertains to the the Project. Developer shall name city as additional policies obtained by Developer for the Developer's activities and operation on 7.8 other Land Owners. Developer hereby agrees to dedicate adequate rights-of-way within the boundaries of the Property for other land owners to "Pioneer" public facilities on the Property; provided, however, as follows: (i) dedications shall be restricted to those reasonably necessary for the construction of facilities identified in the city's adopted public facility plans; (ii) this provision shall not be binding on the successors-in- interest or assignees of Developer following recordation of the final "Super Block" or "A" Map; and (iii) the city shall use its reasonable best efforts to obtain agreements similar to this subsection from other developers and to obtain equitable reimburse- ment for Developer for any excess dedications. 8. DEVELOPMENT IMPACT FEES. 8.1 Existina DeveloDment ImDact Fee Proaram Pavments. Developer shall pay to the City a DIF, or construct improvements in lieu of payment, for improvements which are conditions of a tentative sUbdivision map upon the issuance of building permits (s) , or at a later time as specified by City ordinance, the Subdivision -14- Map Act, or Public Facility Financing Plan (PFFP). in the amount in effect at the time payment is made increased pursuant to Section 8.6 herein. The DIF will be and may only be 8.2 Other Undeveloped Properties. The City will use its reasonable best efforts to impose and collect, or cause the imposition and collection of, the same DIF program on all the undeveloped real properties which benefit from the provision of the public facility through the DIF program, or provided as a condition of Project Approvals. 8.3 Use of Development Impact Fee Proqram. The DIF amounts paid to the city by Developer and others with respect to the Area of Benefit shall be placed by the City in a capital facility fund account established pursuant to California Government Code sections 66000-66009. The city shall expend such funds only for the projects described in the adopted fee program as may be modified from time to time. The City will use its reasonable best efforts to cause such Projects to be completed as soon as practica- ble; however, the city shall not be obligated to use its general funds for such Projects. 8.4 Withholdinq of Permits. Developer agrees that city shall have the right to withhold issuance of the building permit for any structure or improvement on the Property unless and until the DIF is paid for such structure or improvement. 8.5 Development Impact Fee Credit. Upon the completion and acceptance by the city of any public facility, the city shall immediately credit Developer with the appropriate amount of cash credits (IIEDUs") as determined by Developer and city. However, if the improvements are paid for through an Assessment District, the city shall credit the Developer with the appropriate number of Equivalent Dwelling unit Credits (EDU'S). Developer shall be entitled to apply any and all credits accrued pursuant to this subsection toward the required payment of future DIF for any phase, stage or increment of development of the Project. 8.6 Modification of Development Impact Fees. The parties recognize that from time to time during the duration of the Agreement it will be necessary for the City to update and modify its DIF fees. Such reasonable modifications are contemplated by the City and the Developer and shall not constitute a modification to the Agreement so long as: (i) the modification incorporates the reasonable costs of providing facilities identified in the Existing Project Approvals; (ii) are based upon methodologies in substantial compliance with the methodology contained in the existing DIF programs; or other methodology approved by the city council following a public hearing; (iii) complies with the provisions of Government Code sections 66000-66009. 8.7 Standards for Financinq Obliqations of Owner. In connection with the development of the Property, the following standards regarding the financing of public improvements shall apply: 8.7.1 Owner shall pay its fair share for the interchanges described in Paragraph 5.1.1 5.1.3, based upon -15- the number of dwelling units or equivalent dwellings of development allowed on the Property as compared to the total dwelling units or equivalent dwelling units allowed on properties served by such interchanges. 8.7.2 Owner shall participate in the DIF Program for the otay Valley Parcel with other owners in proportion to the total dwelling units or equivalent dwelling units allowed on the Property as compared with the total of such units allowed on properties in that particular DIF or by some other equitable methodology decided by the city Council. 8.7.3 The city shall diligently pursue the requirements that the Eastern Territories' DIF requires offsite third parties and adjacent jurisdictions to bear their fair share of all otay River Valley crossings. 9. CITY OBLIGATIONS. 9.1 Urban Infrastructure. To the extent it is within the authority of the City to provide, city shall accommodate urban infrastructure to the project, consistent with Existing Project Approvals. Where it is necessary to utilize city property to provide urban infrastructure consistent with the Existing Project Approvals, the city agrees to make such land available for such uses, provided that the city if it so chooses is compensated at fair market value for the property. To the extent that the provision of urban infrastructure is within the authority of another public or quasi-public agency or utility, the city agrees to fully cooperate with such agency or agencies to accommodate the urban infrastructure, consistent with Existing Project Approvals. Urban infrastructure shall include, but not be limited to gas, electricity, telephone, cable and facilities identified in the otay Ranch Facility Implementation Plan. 9.2 Sewer CaDaci tv. The City agrees to provide adequate sewer capacity for the project, upon the payment of ordinary and necessary sewer connection, capacity and/or service fees. 10. ANNUAL REVIEW. 10.1 citv and Owner ResDonsibilities. City will, at least every twelve (12) months during the Term of this Agreement, pursuant to California Government Code S65865.1, review the extent of good faith substantial compliance by Owner with the terms of this Agreement. Pursuant to California Government Code section 65865.1, as amended, Owner shall have the duty to demonstrate by substantial evidence its good faith compliance with the terms of this Agreement at the periodic review. Either city or Owner may address any requirement of the Agreement during the review. 10.2 Evidence. The parties recognize that this Agreement and the documents incorporated herein could be deemed to contain hundreds of requirements and that evidence of each and every requirement would be a wasteful exercise of the parties' resources. Accordingly, Developer shall be deemed to have satisfied its good faith compliance when it presents evidence of substantial com- pliance with the major provisions of this Agreement. Generalized -16- evidence or statements shall be accepted in the absence of any evidence that such evidence is untrue. 10.3 Review Letter. If Owner is found to be in com- pliance with this Agreement after the annual review, city shall, within forty-five (45) days after Owner's written request, issue a review letter in recordable form to Owner ("Letter") stating that based upon information known or made known to the council, the City Planning Commission and/or the city Planning Director, this Agreement remains in effect and Owner is not in default. Owner may record the Letter in the Official Records of the County of San Diego. 10.4 Failure of Periodic Review. city's failure to review at least annually Owner's compliance with the terms and conditions of this Agreement shall not constitute, or be asserted by city or OWner as, a breach of the Agreement. 11. DEFAULT. 11.1 Events of Default. A default under this Agreement shall be deemed to have occurred upon the happening of one or more of the following events or conditions: 11.1.1 A warranty,' representation or statement made or furnished by Owner to city is false or proves to have been false in any material respect when it was made. 11.1.2 A finding and determination by City made following a periodic review under the procedure provided for in California Government Code section 65865.1 that upon the basis of substantial evidence Owner has not complied in good faith with one or more of the terms or conditions of this Agreement. consider submitted 11.1.3 City does not accept, requested development permits in accordance with the provisions timely review, or or entitlements of this Agreement. 11.1. 4 Any other act or omission by city or Owner which materially interferes with the terms of this Agreement. 11.2 Procedure Upon Default. 11.2.1 Upon the occurrence of default by the other party, City or Owner may terminate this Agreement after providing the other party thirty (30) days written notice specifying the nature of the alleged default and, when appropriate, the manner in which said default may be satis- factorily cured. After proper notice and expiration of said thirty (30) day cure period without cure, this Agreement may be terminated. In the event that city's or Owner's default is not subject to cure within the thirty (30) day period, city or Owner shall be deemed not to remain in default in the event that City or Owner commences to cure within such thirty (30) day period and diligently prosecutes such cure to completion. Failure or delay in giving notice of any default shall not constitute a waiver of any default, nor shall it change the -17- time of default. Notwithstanding any other provision of this Agreement, City reserves the right to formulate and propose to Owner options for curing any defaults under this Agreement for which a cure is not specified in this Agreement. 11. 2.2 City does not waive any claim of defect in performance by Owner if, on periodic review, City does not propose to modify or terminate this Agreement. 11.2.3 subject to Paragraph 16.12 of this Agreement, the failure of a third person shall not excuse a party's nonperformance under this agreement. 11.2.4 All other remedies at law or in equity which are consistent with the provisions of this Agreement are available to city and Owner to pursue in the event there is a breach Drovided however. neither Dartv shall have the remedY of monetarY damaaes aaainst the other. exceDt for an award of litiaation costs and attorney's fees. 12. ENCUMBRANCES AND RELEASES ON PROPERTY. 12.1 Discretion to Encumber. This Agreement shall not prevent or limit Owner in any manner at Owner's sole discretion, from encumbering the Property, or any portion of the Property, or any improvement on the Property, by any mortgage, deed of trust, or other security device securing financing with respect to the Property or its improvement. 12.2 Mortaaaee Riahts and Obliaations. The mortgagee of a mortgage or beneficiary of a deed of trust encumbering the Property, or any part thereof, and their successors and assigns shall, upon written request to City, be entitled to receive from city written notification of any default by Owner of the performance of Owner's obligations under the Agreement which has not been cured within thirty (30) days following the date of default. 12.3 Releases. city agrees that upon written request of Owner and payment of all fees and performance of the require- ments and conditions required of Owner by this Agreement with respect to the Property, or any portion thereof, City may execute and deliver to Owner appropriate release(s) of further obligations imposed by this Agreement in form and substance acceptable to the San Diego County Recorder and title insurance company, if any, or as may otherwise be necessary to effect the release. City Manager shall not unreasonably withhold approval of such release(s). 12.4 Obliaation to Modifv. City acknowledges that the lenders providing financing for the Project may require certain modifications to this Agreement and City agrees, upon request from time to time, to meet with Owner and/or representatives of such lenders to negotiate in good faith any such requirement for modification. city will not unreasonably withhold its consent to any such requested modification. 13. MODIFICATION OR SUSPENSION. -18- 13.1 Modification to Aqreement bv Mutual Consent. This Agreement may be modified, from time to time, by the mutual consent of the' parties only in the same manner as its adoption by an ordinance as set forth in California Government Code sections 65867, 65867.5 and 65868. The term, "this Agreement" as used in this Agreement, will include any such modification properly approved and executed. 13.2 Unforeseen Health or Safetv circumstances. If, as a result of facts, events, or circumstances presently unknown, unforeseeable, and which could not have been known to the parties prior to the commencement of this Agreement, city finds that failure to suspend this Agreement would place the residents of city in a severe and immediate emergency to their health or safety. 13.2.1 Notification of Unforeseen Circumstances. Notify Developer of (i) city's determination; and (ii) the reasons for city's determination, and all facts upon which such reasons are based; 13.2.2 Notice of Hearinq. Notify Developer in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Developer a minimum of ten (10) days prior to the hearings described in section 13.2.3, all documents related to such determination and reasons therefor; and 13.2.3 Hearinq. Hold a hearing on the deter- mination, at which hearing Developer will have the right to address the city council. At the conclusion of said hearing, city may take action to suspend this Agreement as provided herein. The City may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the parties, the City finds failure to suspend would place the residents of the city in a severe and immediate emergency to their health or safety. 13.3 Chanqe in state or Federal Law or Requlations. If any state or federal law or regulation enacted during the Term of this Agreement, or the action or inaction of any other affected governmental jurisdiction, precludes compliance with one or more provisions of this Agreement, or requires changes in plans, maps, or permits approved by city, the parties will act pursuant to Sections 13.3.1 and 13.3.2, below. 13.3.1 Notice: Meetinq. The party first becoming aware of such enactment or action or inaction will provide the other party(ies) with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of this Agreement. The parties will promptly meet and confer in a good faith and reasonable attempt to modify or suspend this Agreement to comply with such federal or state law or regula- tion. 13.3.2 Hearinq. If an agreed upon modification or suspension would not require an amendment to this Agree- ment, no hearing shall be held. otherwise, the matter of such -19- federal or state law or regulation will be scheduled for hearing before the city. Fifteen (15) days' written notice of such hearing shall be provided to Developer, and the city, at such hearing, will determine and issue findings on the modification or suspension which is required by such federal or state law or regulation. Developer, at the hearing, shall have the right to offer testimony and other evidence. If the parties fail to agree after said hearing, the matter may be submitted to mediation pursuant to subsection 13.3.3, below. Any modification or suspension shall be taken by the affirma- tive vote of not less than a majority of the authorized voting members of the city. Any suspension or modification may be subject to judicial review in conformance with subsection 16.19 of this Agreement. 13.3.3 Mediation of DisDutes. In the event the dispute between the parties with respect to the provisions of this paragraph has not been resolved to the satisfaction of both parties following the City hearing required by subsection 13.3.2, the matter shall be submitted to mediation prior to the filing of any legal action by any party. The mediation will be conducted by the San Diego Mediation Center; if San Diego Mediation Center is unable to conduct the mediation, the parties shall submit the dispute for mediation to the Judicial Arbitration and Mediation Service or similar organization and make a good faith effort to resolve the dispute. The cost of any such mediation shall be divided equally between the Developer and city. 13.4 Natural Communities conservation Act (NCCP). The parties recognize that Developer and the city are individually negotiating agreements with the united States Fish and wildlife Service ("USF&W") and' the California Department of Fish and Game pursuant to the ongoing regional effort to implement the Natural communities Conservation Act ("NCCP"), locally proposed to be implemented through the MUlti-Species Conservation Program ("MSCP"). The parties further recognize that implementation of the agreements may necessitate modification to the Existing Project Approvals. The parties agree to utilize their best efforts to implement these agreements, once executed, through the timely processing of modifications to the Existing Project Approvals as they relate to the Property. The Developer agrees to pay the reasonable city cost for processing work related to the modifica- tions. Once such modifications are obtained they shall be vested to the same extent as Existing Project Approvals. 14. DISTRICTS. PUBLIC FINANCING MECHANISMS. This Agreement and the Existing Project Approvals recognize that assessment districts, community facility districts, or other public financing mechanisms, may be necessary to finance the cost of public improvements borne by this Project. If Developer, pursuant to the Existing Project Approvals/Future Discretionary Approvals, is required to install improvements through the use of assessment districts, community facility districts, or other public financing mechanisms, the city shall initiate and conclude appropriate proceedings for the formation of such financing -20- district or funding mechanism, under applicable laws or ordinances. Developer may request that the City utilize any other financing methods which may become available under city laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be paid by Developer sUbject to reimbursement, as may be legally authorized out of the proceeds of any financing district or funding mechanism. 15. ASSIGNMENT AND DELEGATION. 15.1 Assiqnment. Owner shall have the right to transfer or assign its interest in the Property, in whole or in part, to any persons, partnership, joint venture, firm, or corpora- tion at any time during the Term of this Agreement without the consent of city. Owner also shall have the right to assign or transfer all or any portion of its interest or rights under this Agreement to third parties acquiring an interest or estate in the Property at any time during the Term of this Agreement without the consent of city. 15.2 Deleqation. In addition, Owner shall have the right to delegate or transfer its obligations under this Agreement to third parties acquiring an interest or estate in the Property after receiving the prior written consent of the City Manager, which consent shall not be unreasonably with- held, delayed, or conditioned. Once the city Manager has consented to a transfer, delivery to and acceptance by the City Manager of an unqualified written assumption of Owner's obligations under this Agreement by such transferee shall relieve Owner of the obligations under this Agreement to the extent the obligations have been expressly assumed by the transferee. Such transferee shall not be entitled to amend this Agreement without the written consent of the entity that, as of the Effective Date, is Owner, which consent shall not be unreasonably withheld, delayed, or conditioned. The entity that is Owner as of the Effective Date, however, shall be entitled to amend this Agreement without the written consent of such transferee. 16. MISCELLANEOUS PROVISIONS. 16.1 Bindinq Effect of Aqreement. Except to the extent otherwise provided in this Agreement, the burdens of this Agreement bind, and the benefits of this Agreement inure, to City's and Owner's successors-in-interest and shall run with the land. 16.2 RelationshiD of citv and Owner. The contractual relationship between City and Owner arising out of this Agreement is one of independent contractor and not agency. This Agreement does not create any third-party beneficiary rights. 16.3 Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person, or mailed by first-class or certified mail, postage prepaid, addressed as follows: If to City, to: City of Chula. vista 276 Fourth Avenue -21- Chu1a vista, CA 91910 Attention: City Manager .If to Owner, to: Jewels of Charity, Inc. 705 Severn Road, suite 1040 Wilmington, DE 19803 Attention: Patrick Patek STEPHENSON, WORLEY, GARRATT SCHWARTZ, HEIDEL & PRAIRIE 101 West Broadway, suite 1300 San Diego, CA 92101 Attention: Donald R. Worley, Esq. City or Owner may change its address by giving notice in writing to the other. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given upon personal delivery, or, if mailed, two (2) business days following deposit in the united States mail. with a Copy to: 16.4 Rules of construction. In this Agreement, the use of the singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory; "may" is permissive. 16.5 Entire Aqreement. Waivers. and Recorded Statement. This Agreement constitutes the entire understanding and agreement of city and Owner with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between City and Owner respecting this Agreement. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of city and Owner. Upon the completion of performance of this Agreement, or its revocation or termination, a statement evidencing completion, revocation, or termination signed by the appropriate agents of City shall be recorded in the Official Records of San Diego County, California. 16.6 Pro;ect as a Private Undertakinq. It is specifically understood by city and Owner that (i) the Project is a private development; (ii) City has no interest in or responsibilities for or duty to third parties concerning any improvements to the Property until city accepts the improvements pursuant to the provisions of the Agreement or in connection with subdivision map approvals; and (iii) Owner shall have the full power and exclusive control of the Property subject to the obligations of Owner set forth in this Agreement. 16.7 Incorooration of Recitals. The recitals set forth in Paragraph 1 of this Agreement are part of this Agreement. 16.8 Caotions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement. 16.9 Consent. Where the consent or approval of city or Owner is required or necessary under this Agreement, the consent or -22- approval shall not be unreasonably withheld, delayed, or con- ditioned. 16.10 Covenant of CooDeration. cooperate and deal with each other in good other in the performance of the provisions City and Owner shall faith, and assist each of this Agreement. 16.11 Recordina. The city Clerk shall cause a copy of this Agreement to be recorded with the Office of the County Recorder of San Diego county, California, within ten (10) days following the Effective Date. 16.12 Delav. Extension of Time for Performance. In addition to any specific provision of this Agreement, performance by either City or Owner of its obligations hereunder shall be excused, and the Term of this Agreement and the Development Plan extended, during any period of delay caused at any time by reason of any event beyond the control of city or Owner which prevents or delays and impacts City's or Owner's ability to perform obligations under this Agreement, including, but not limited to, acts of God, enactment of new conflicting federal or state laws or regulations (example: listing of a species as threatened or endangered), judicial actions such as the issuance of restraining orders and injunctions, riots, strikes, or damage to work in process by reason of fire, floods, earthquake, or other such casualties. If City or Owner seeks excuse from performance, it shall provide written notice of such delay to the other within thirty (30) days of the commencement of such delay. If the delay or default is beyond the control of city or Owner, and is excused, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. 16.13 Covenant of Good Faith and Fair Dealinas. No party shall do anything which shall have the effect of harming or injuring the right of the other parties to receive the benefits of this Agreement; each party shall refrain from doing anything which would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates that such party shall do in order to accomplish the objectives and purposes of this Agreement. 16.14 ODeratina Memorandum. The parties acknowledge that the provisions of this Agreement require a close degree of cooperation between city and Developer, and that the refinements and further development of the Project may demonstrate that minor changes are appropriate with respect to the details of performance of the parties. The parties, therefore, retain a certain degree of flexibility with respect to those items covered in general under this Agreement. When and if the parties mutually find that minor changes or adjustments are necessary or appropriate, they may effectuate changes or adjustments through operating memoranda approved by the parties. For purposes of this section 16.14, the City Manager, or his designee, shall have the authority to approve the operating memoranda on behalf of city. No operating memoranda shall require notice or hearing or constitute an amendment to this Agreement. -23- 16.15 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 16.16 Amendment or Cancellation of Aareement. This Agreement may be amended from time to time or canceled by the mutual consent of City and Owner only in the same manner as its adoption, by an ordinance as set forth in California Government Code section 65868, and shall be in a form suitable for recording in the Official Records of San Diego county, California. The term "Agreement" shall include any such amendment properly approved and executed. city and Owner acknowledge that the provisions of this Agreement require a close degree of cooperation between them, and that minor or insubstantial changes to the Project and the Development Plan may be required from time to time to accommodate design changes, engineering changes, and other refinements. Accordingly, changes to the Project and the Development Plan that do not result in a change in use, an increase in density or intensity of use, cause new or increased environmental impacts, or violate any applicable health and safety regulations, may be considered minor or insubstantial by the City Manager and made without amending this Agreement. 16.17 Estoppel Certificate. within 30 calendar days following a written request by any of the parties, the other parties to this Agreement shall execute and deliver to the requesting party a statement certifying that (i) this Agreement is unmodified and in full force and effect, or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications; (ii) there are no known current uncured defaults under this Agreement, or specifying the dates and nature of any such default; and (iii) any other reasonable information requested. The failure to deliver such a statement within such time shall constitute a conclusive presumption against the party which fails to deliver such statement that this Agreement is in full force and effect without modification, except as may be represented by the requesting party, and that there are no uncured defaults in the performance of the requesting party, except as may be represented by the requesting party. 16.18 Severabilitv. If any material provision of this Agreement is held invalid, this Agreement will be automatically terminated with neither partv bearina anv liabilitv hereunder. Notwithstandina the toreaoina, 1:IRless within 15 days after such provision is held invalid, if the party holding rights under the invalidated provision affirms the balance of this Agreement in writing this Aareement shall not be terminated. This provision will not affect the right of the parties to modify or suspend this Agreement by mutual consent pursuant to Paragraph 12.4. 16.19 Institution of Leaal Proceedina. In addition to any other rights or remedies, any party may institute legal action to cure, correct, or remedy any default, to enforce any covenants or agreements herein, or to enjoin any threatened or attempted violation thereof; to recover damages for any default as allowed bv this Aareement or to obtain any remedies consistent with the purpose of -24- this Agreement. Such legal actions must be instituted in the Superior Court of the County of San Diego, State of California. 16.20 Attornevs' Fees and Costs. If any party commences litigation or other proceedings (including, without limitation, arbitration) for the interpretation, reformation, enforcement, or rescission of this Agreement, the prevailing party, as determined by the court, will be entitled to its reasonable attorneys' fees and costs. 16.21 Hold Harmless. Developer agrees to and shall hold city, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operations of Developer or those of its contractors, subcontractors, agents, employees or other persons acting on Developer's behalf which relate to the Project. Developer agrees to and shall defend city and its officers, agents, employees and representatives from actions for damage caused or alleged to have been caused by reason of Developer's activities in connection with the Project. Developer agrees to indemnify, hold harmless, pay all costs and provide a defense for city in any legal action filed in a court of competent jurisdiction by a third party challenging the validity of this Agreement. The provisions of this section 16.21 shall not apply to the extent such damage, liability or claim is caused by the intentional or negligent act or omission of city, its officers, agents, employees or representatives. -25- SIGNATURE PAGE TO PRE-ANNEXATION DEVELOPMENT AGREEMENT. Dated this day of , 1996. "CITY" CITY OF CHULA VISTA By: SHIRLEY HORTON, MAYOR "OWNER" JEWELS OF CHARITY By: PATRICK PATEK, PRESIDENT I hereby approve the form and legality of the foregoing Pre- Annexation Development Agreement this day of , 1996. Ann Moore, Interim City Attorney city of Chula vista By: -26- '_E~HIBIT A ~I~ ~t- ~ ~ - JEWELS OF CHARITY 01Y OF CHULA VISTA PLANNING DEPARTMENT 6/19/96 CI Z W o W -1 . o Z t: ra 0 ..... .- U)..... .- ra EO > .~ ra t: ... - - .- .-ot \\1 .c"'C') .-.s::::: L- ~UO W,+-Q) 00::: ~J:: .- (,) U t: ra 0::: >- ra ..... r'\ >- .... '" "'"C V; c: .- :J > 0 .!:ECC :J >- .t=.~ UU "C QJ "C C:C "'0 E:;:: '" Ex", 0<:'>", uCc.> <l>c:.... c.::~~ '" -..... .~ 0 CJ >CJ~ "'....<1> -"':J :J..c:_ ..c: Co..... UU).5 - c: "c'" <l>E "'..c: Ou Co",,,, 0- <:.> ....<1>.... Q.O~ ;;: ra "C QJ C .... "'-~ -1,~ >. >.u"C ",c.>:J _c...;:; oU)U) " ... .. ~ .. ,. Z< .. z: 0 ~, ~!! 15> ;: 0< ::r '" ~l j ~:5 0 , .. ! o U:.:> ~ , ~ :r: ;;: u 0< '" <.: 0 ... c.:: I .,.......':;,.:-;,:<-:-". ~m I --I I I L_, ....J I l, .,. I ,I -) , \--J J I ('or ~ '" .~ ::i: N- ~I c EXHIBIT .C' Pre-annexatipn Development Agreement Planning Area Assessor Ownership Acreage Parcel Numbers Otay Valley Parcel 644-080-10 Jewels of Charity 315.17 Otay Valley Parcel 644-090-03 Jewels of Charity 160.00 475.17 Total f~ PRE-ANNEXATION DEVELOPMENT AGREEMENT THIS PRE-ANNEXATION DEVELOPMENT AGREEMENT ("Agreement") is made effective on the date hereinafter set forth below by and among the CITY OF CHULA VISTA ("city") and STEPHEN AND MARY BIRCH FOUNDATION ("Foundation'), who agree as follows: 1. RECITALS. following facts: This Agreement is made with respect to the 1. 1 Owner. The owners of the properties subj ect to this Agreement (hereinafter collectively referred to as "Owner" or as "Developer") are as follows: 1.1.1 Foundation is the owner of approximately 168 acres of undeveloped real property ("the Foundation Property") in the unincorporated area of the county, described in Exhibits "A" and "C", attached hereto and incorporated herein by this reference. 1.1.2 The Foundation property ("Property") is part of a larger area commonly known, and referred to herein, as "the otay Valley Parcel of otay Ranch." 1. 2 citv. The city of Chula vista is a municipal corporation with Charter city 1)owers aHe!. aH incorporated e*y within the County. 1.3 Code Authorization and Acknowledqments. 1.3.1 city is authorized pursuant to its charter. self-rule 1)owers and California Government Code sections 65864 through 65869.5 to enter into development agreements for the purpose of establishing certainty for both City and owners of real property in the development process. 1.3.2 Government Code section 65865 expressly authorizes a city to enter into a development agreement with any person having a legal or equitable interest in real property in unincorporated territory within that city's sphere of influence for the development of property as provided in the Development Agreement Law; provided that the agreement shall not become operative unless annexation proceedings annexing the property to the city are completed within the time specified by the agreement. 1.3.3 city enters into this Agreement pursuant to the provisions of the California Government Code, its home- rule powers, and applicable city ordinances, rules, regula- tions and policies. 1.3.4 city and Owner intend to enter into this aqreement for the followinq purposes: ae](He'.:lee!.'!Je I -1- 1.3.4.1 %2 This AgreemeR~ assures adequate public facilities at the time of development. 1.3.4.2 12 Thia AIJFeemel'lt assures development in accordance with City's capital improvement plans. 1.3.4.3 This AgreemeRt eeRB~itatEs a e~rreRt E!Kereise sf sity' s psliee Jls'.Jers t %0 provide certainty to Owner in the development approval process by vesting the permitted use(s), density, intensity of use, and the timing and phasing of development as described in the Development Plan, which is defined in Paragraph 2.4 of this Agreement, in exchange for Owner's entering into this Agreement and for its commitment to support the Annexation described below. 1.3.4.4 TRis 1.!:reeme"t -...-ill ~ achievement of City growth management goals and tives. permit objec- 1.3.4.5 This J.greemel'lt ,:ill 12 allow City to realize significant economic, recreational, park, open space, social, and public facilities benefits for the City, some of which are of regional significance. 1.3.4.6 This 1.greemeRt ,Jill 12 provide and assure that the City receive sales tax revenues, increase in the property tax base, residential housing and other development, sewer, water and street facilities. 1.3.4.7 This Agreement ~ 12 provide and assure that the City receives public facilities in excess of project generated impacts and such facilities shall be of supplemental size, number capacity or length, which shall be provided earlier than could be provided either by funds from the City or than would strictly be necessary to mitigate project related impacts at any development phase. 1.3.4.8 This AlJreemel'lt ~ill 12 provide the City the developer's support to secure annexation of the lands depicted in Exhibit "B". 1. 3.4.9 This J.lJreemeRt will 12 enable the city to secure title to the land within the boundaries of the Property necessary to complete the Chula vista greenbelt system as defined in the Chula vista General Plan. 1. 3.4.10 This AgreemeRt ',1111 12 assure the city that the Developer will dedicate rights-of-way to the city for SR-125, a route which, when constructed, will substantially alleviate congestion on 1-805 and 1-5, and also will facilitate the economic development of Chula vista. -2- 1.3.4.11 Because of the complexities of the financing of the infrastructure, park, open space, and other dedications, and regional and community facilities, and the significant nature of such facilities, certainty in the development process is an absolute necessity. The phasing, timing, and development of public infrastructure necessitate a significant commitment of resources, planning, and effort by Owner for the public facilities financing, construction, and dedication to be success- fully completed. In return for Owner's participation and commitment to these significant contributions of private resources for public purposes and for Owner's consent to the Annexation described below, City is willing to exercise its authority to enter into this Agreement and to make a commitment of certainty for the development process for the property. 1.3.4.12 In consideration of Owner's agreement to provide the significant benefits and for Owner's consent to the Annexation described below, City hereby grants Owner assurances that it can proceed with develop- ment of the Property in accordance with City's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement sub;ect to Section 5.2.1 below. Owner would not enter into this Agreement or agree to provide the public benefits and improvements described in this Agreement if it were not for the commitment of city that the Property subject to this Agreement can be developed in accordance with city's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement sub;ect to section 5.2.1 below. 1.4 The Annexation. The city has applied to the Local Agency Formation commission ("LAFCO") for annexation of Sphere of Influence Planning Area 1 "The Otay Parcel", Planning Area 2 "Inverted L" and the Mary Patrick Estate Parcel (see Attachment "B") . 1.5 Sphere of Influence. A City application is pending before LAFCO to have the otay Valley Parcel included within city's sphere of influence. On February 5, 1996 the Local Agency Formation commission approved the inclusion of approximately 7,600 acres into the City Sphere of Influence (Sphere of Influence Planning Area 2 and the northern two thirds of Planning Area 1), and designated the Otay River Valley an village 3 as special study areas. 1.6 Plannina Documents. On October 28, 1993, City and County adopted the otay Ranch General Development Plan/Subregional Plan ("the GDP") which includes the otay Ranch Village Phasing Plan, Facility Implementation Plan, Resource Management Plan and service Revenue Plan, for approximately 23,000 acres of the Otay -3- Ranch, including the otay Valley Parcel and the Foundation property. 1. 7 Owner Consent. city desires to have the cooperation and consent of Owner to include the Property in the Annexation in order to better plan, finance, construct and maintain the infra- structure for the otay valley parcel; and the Foundation desires to give their cooperation and consent, provided that they obtain certain assurances, as set forth in this Agreement. 1.8 citv Ordinance. Auaust ,July 9, 1996 is the date of adoption by the city Council of Ordinance No. 2679 approving this Agreement. The ordinance shall take effect and be in full force on the effective date of Annexation. 2. DEFINITIONS. otherwise requires: In this Agreement, unless the context 2.1 "Annexation" means the proposed annexation of that portion of the otay Ranch into the city as depicted on Exhibit "D". 2.2 "City" means the city of Chula Vista, in the County of San Diego, State of California. 2.3 "county" means the County of San Diego, state of California. 2.4 "Development Plan" means the GDP. 2.5 "GDP" means the General Development Plan/Subregional Plan for the otay Ranch, described in Paragraph 1.6, above. 2.6 "Owner" or "Developer" means the person, persons, or entity having a legal and equitable interest in the Property, or parts thereof, and includes Owner's successors-in-interest. 2.7 "Project" means the physical development of the private and public improvements on the property as provided for in the Existing Project Approvals and as may be authorized by the City in Future Discretionary Approvals. 2.8 "Property" means the real property described in paragraph 1.1.1. 2.9 The "Term" of this Agreement means the period defined in Paragraph 3, below. 2.10 "Builder" means developer to whom Developer has sold or conveyed property within the Property for purposes of its improvement for residential, commercial, industrial or other use. 2.11 "CEQA" means the California Environmental Quality Act, California public Resources Code section 21000, et seq. -4- 2.12 "city council" means the city of Chula Vista city council. 2.13 "Commit" or "committed" means all of the following requirements have been met with respect to any public facility: 2.13.1 For a public facility within the city's jurisdictional boundaries and a responsibility of the develop- er. 2.13.1.1 All discretionary permits required of the Developer have been obtained for construction of the public facility; 2.13.1.2 Plans for the construction of the public facility have all the necessary governmental approvals; and 2.13.1.3 Adequate funds (i.e., letters of credit, cash deposits, performance bonds or land secured public financing, including facility benefit assessments, Mello-Roos assessment districts of similar assessment mechanism) are available such that the city can construct the public facility if construction has not commenced within thirty (30) days of issuance of a notice to proceed by the Director of Public Works, or construction is not progressing towards completion in a reasonable manner as reasonably deemed by the Director of Public Works. 2.13.2 For a public facility within the City's jurisdictional boundaries, but to be provided by other than Developer. 2.13.2.1 Developer's proportionate share of the cost of such public facility as defined in the existing Project Approvals and Future Discretionary Approvals has been provided or assured by Developer through the payment or impositions of development impact fee or other similar exaction mechanism. 2.13.3 For public facility not within city's jurisdictional boundaries: the cost existing Approvals Developer of Public 2.13.3.1 Developer's proportionate share of of such public facility as defined in the Project Approvals and Future Discretionary has been provided for or otherwise assured by to the reasonable satisfaction of the Director Works. 2.14 "Development Impact Fee (DIF)" means fees imposed upon new development pursuant to the City of Chula vista Development Impact Fee Program, for example, including but not limited to the Transportation Development Impact Fee Program, the -5- Interim SR-125 Development Impact Fee Program, the Salt Creek Sewer DIF and the Public Facilities DIF. 2.15 "Existing Project Approvals" means all discretionary approvals affecting the Project which have been approved or established in conjunction with, or preceding, the effective date consisting of, but not limited to the GDP, the Chula vista General Plan, the Otay Ranch Reserve Fund Program adopted pursuant to Resolution 18288, and the Phase I and II Resource Management Plan (RMP) , as may be amended from time to time consistent with this agreement. 2.16 "Final Map(s)" means any final subdivision map for all or any portion of the Property other than the Superblock Final Map ("A" Maps). 2.17 "Future Discretionary Approvals" means all permits and approvals by the city granted after the effective date and excluding existing Project Approvals, including, but not limited to: (i) grading permits; (ii) site plan reviews; (iii) design guidelines and reviews; (i v) precise plan reviews; (v) subdivisions of the Property or re-subdivisions. of the Property previously subdivided pursuant to the Subdivision Map Act; (vi) conditional use permits; (vii) variances; (viii) encroachment permits; (ix) sectional Planning Area plans; (x) Preserve conveyance Plan and (xi) all other reviews, permits, and approvals of any type which may be required from time to time to authorize public or private on- or off-site facilities which are a part of the Project. 2.18 "Planning commission" means the Planning commission of the City of Chula Vista. 2.19 "Preserve Conveyance Plan" means a plan that will. when adoDted. set forth policies and identify the schedule for ~ ~e se transferped of land and/or fees to be paid to insure the orderly conveyance of the Otay Ranch land to the Preserve Owner Manager. The purpose of the plan is to fulfill the obligations to convey resource sensitive land, per the criteria contained in the phase I and II Resource Management Plans and to mitigate environ- mental impacts of the otay Ranch Project. 2.20 "Public Facility" public facilities described Implementation Plan. 2.21 "Subdivision Map Act" means the California Subdivision Map Act, Government Code section 66410, et seq., and its amendments as may from time to time be adopted. or "Public Facilities" means those in the Otay Ranch Facility 2.22 "Substantial Compliance" means that the party charged with the performance of a covenant herein has sufficiently followed the terms of this Agreement so as to carry out the intent of the parties in entering into this Agreement. -6- 2.23 "Threshold" means the facility thresholds set forth in the City's Municipal Code section 19.19.040. 3. TERM. This Agreement shall become effective as a development agreement upon the effective date of the Annexation ("the Effective Date"); provided, however, that if the Annexation does not occur on or before January I, 1997, this Agreement shall be null and void. Any of the foregoing to the contrary notwith- standing, from the date of first reading of the ordinance approving this Agreement, and unless or until this Agreement becomes null and void, Owner shall be bound by the terms of Paragraph 4. The Term of this Agreement for purposes other than Paragraph 4 shall begin upon the Effective Date, and shall continue for a period of twenty (20) years ("the Term"). The term shall also be extended for any period of time during which issuance of building permits to Developer is suspended for any reason other than the default of Developer, and for a period of time equal to the period of time during which any action by the city or court action limits the processing of future discretionary approvals, issuance of building permits or any other development of the property consistent with this Agreement. 4. OWNER CONSENT TO ANNEXATION. Owner hereby consents to and shall cooperate with the applications of city to declare that the otay Valley Parcel is within City's sphere of influence and to annex the otay Valley Parcel to the city; provided, however, that Owner may withdraw such consent and withhold further cooperation if the City, prior to the Effective Date, adopts rules, regulations, ordinances, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments or fees applicable to and governing development of the Property which are inconsistent with, or render impractical development of the Property according to, the Development Plan or the additional commitments of city set forth in Paragraphs 5.1.1 through 5.1.5 5.1.8, below. Owner also aqrees not to cha11enqe the annexation of the otay Valley Parcel into the city. 5. VESTED RIGHTS. Notwi thstanding any future action or inaction of the city during the term of this Agreement, whether such action is by ordinance, resolution or policy of the City, Owner and Developer shall have a vested right, except as may be otherwise provided in this section 5, to construct the Project in accordance with: 5.1 Existing Project Approvals, subject to the following requests for modifications if approved bv the city: 5.1.1 Cit.y a1=J.all rcaE1efiabl~i cst=iciEicr iR it.s diaert:tiefi aRe .u.i t.h 13rafJer E:f1";irenmcntal rc.....ic\: I a rCEJuE.st. t.o iRort:asE ~he residential aCFicity sf Villa~ea 2, 4, aRa 8, ~p te the RumBcr af resiacRtial uRita pre~iaca iR villa~c J BY the CeuRty' aaeptea CBr. -7- . S ..1.. 2 cit.y shall re:ae6Fiaely eefuJifie:r iFi ita aiserc't.isH aHa preeCS5 \Ji ~h prepeF eHvirsHHleFltal Fevia".: a re~ue:5t te eRaR~c the pFim3FY laRa use aSai!RatieR fer Village J fram IAaastrial te eemmereial, rcereatieRal, ~isiter B~r~iA~, aRB same: reaidcRtial aseo iR assitieR ta ~hc IRa~D ~rial \ioe.. TRe ellBs't aereBEJca af 'the FesiElefit.ial, i}ui\iB~Fial, eammereial, SF ether \isee, ahall se a~reea \ipaFi aRa eet. ferth iR a ~eReral plaR am~RameRt.. 5.1.35.1.1 If the interchange improvements at otay Valley Road and 1-805 are needed to serve the Project, the City will hold appropriate hearings to consider an amendment to ameRB its Transportation Phasing Plan (TPP) and Development Impact Fee (DIF) Program to include said improve- ments as may be deemed aoorooriate bv the city to accommodate the project phasing. The City agrees to reasonably cooperate and work with CALTRANS to complete olans for said ~ inter- change improvement plaRD. 5.1.15.1.2 City shall initiate contact and diligently pursue discussions with the County of San Diego and the city of San Diego to determine the number, scheduling and financing of the otay River road and bridge crossings. 5.1.55.1.3 city shall allow the owner for purposes of processing entitlements to proceed with planning of the Property on a first corne first served basis, with other properties in the area of the Annexation. In addition, if necessary the City shall, with proper environmental review, consider in its discretion an amendment to the village Phasing Plan to facilitate the planning and development of the properties covered by this Agreement. 5.1.65.1.4 To the extent any of the foregoing commitments of city are embodied in changes to the Development Plan- or the rules, regulations, ordinances, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments, and fees applicable to and governing development of the Property, whether adopted before or after the Effective Date, such changes shall be deemed applicable to the Property without change to this Agreement. 5.1.75.1.5 City shall diligently process any amendments, applications, maps, or other development applications. 5.1.6. city may make such modifications or amendments to the Existina proiect Approvals/Future Discretionarv Approvals. as maY be ordered bv a court of competent iurisdiction in an action in which the Developer is a party or has had an opportunity to appear or has been provided notice of such action bv the city. -8- 5.1.8 City ohall r~aoon~Ely eenoia~F and dili ~eR1:.1y prasaoa a raqucc'E 'Ee CHpilRd 'ERe Eicvcla~JReRt. arcas af TlillaEJes 2, J, .( ana 8 in the. e":c.nt f1:1t.1:1re. cH9T-iranJRental staaics iRsioatc that areao aROO C0Roidcrca cn~ireRmcRtally CORstraiRca oaR be e1cT+Tclepca T.lithout oigRific.:lnt, uRmiti~aBlc cnVireHmeRtal impaoto. 5.2 Development of Propertv. The development of the Property will be governed by this Agreement and Existing Project Approvals and such development shall comply and be governed by all rules, regulations, policies, resolutions, ordinances, and standards in effect as of the Effective Date subject to the provisions of Section 5.2.1 below. The City shall retain its discretionary authority as to Future Discretionary Approvals, provided however, such Future Discretionary Approvals shall be regulated by the Existing Project Approvals, this Agreement, and City rules, regulations, standards, ordinances, resolutions and policies in effect on the Effective Date of this Agreement and subject to section 5.2.1. Notwithstanding the foregoing, the city may make such changes to the City's Growth Management Ordinance applicable to the Project as are reasonable and consistent with the purpose and intent of the existing Growth Management Ordinance and which are generally applicable to all private projects citywide or east of 1-805 or within a specific benefit, fee or reimbursement district created pursuant to the california Government Code. 5.2.1 New or Amended Rules. Requlations. Policies. Standards. Ordinances and Resolutions. The city may apply to the Project, including Future Discretionary Approv- als, new or amended rules, laws, regulations, policies, ordinances, resolutions and standards generally applicable to all private projects east of 1-805 or within a specific benefit fee or reimbursement district created pursuant to the California Government Code. The application of such new rules, or amended laws, regulations, resolutions, policies, ordinances and standards will not unreasonably prevent or delay development of the Property to the uses, densities or intensities of development specified herein or as authorized by the Existing Project Approvals. The City may also apply changes in city laws, regulations, ordinances, standards or policies specifically mandated by changes in state or federal law in compliance with section 13.3 herein. 5.2.2 Developer may elect with City's consent, to have applied to the project any rules, regulations, policies, ordinances or standards enacted after the date of this Agreement. Such an election has to be made in a manner consistent with Section 5.2 of this Agreement. 5.2.3 Modifications to Existinq proiect Approvals. It is contemplated by. the parties to this Agreement that the city and Developer may mutually seek and agree to modifications to the Existing Project Approvals. -9- Such modifications are contemplated as within the scope of this Agreement, and shall, upon written acceptance by all parties, constitute for all purposes an Existing Project Approval. The parties agree that any such modifications may not constitute an amendment to this Agreement nor require an amendment to the Agreement. 5.2.4 Future Discretionarv Approvals. It is contemplated by the parties to this Agreement that the city and Developer may agree to Future Discretionary Approvals. The parties agree that any such Future Approvals may not consti- tute an amendment to this Agreement nor require an amendment to the Agreement. 5.3 Dedication and Reservation of Land for Public Purposes. Except as expressly required by this Agreement or the Existing Project Approvals and Future Discretionary Approvals (excepting dedications required within the boundaries of any parcel created by the subsequent subdivision of the Property as required by the Subdivision Map Act), no dedication or reservation of real property within or outside the Property shall be required by City or Developer in conjunction with the Project. Any dedications and reservations of land imposed shall be in accordance with section 7.2 and section 7.8 herein. 5.4 Time for Construction and Completion of Proiect. Because the california Supreme Court held in Pardee construction Companv v. citv of Camarillo (1984) 27 Cal.3d 465, that the failure of the parties to provide for the timing of development resulted in a later-adopted initiative restricting the timing of development to prevail over such parties' Agreement, it is the intention of the parties to this Agreement to cure that deficiency by specifically acknowledging that timing and phasing of development is completely and exclusively governed by the Existing project Approvals, including the Chula vista Growth Management Ordinance. The purpose of the Chula vista Growth Management Ordinance is to "control the timing and location of development by tying the pace of development to the provision of public facilities and improvements to conform to the city's threshold standards. " (Municipal Code section 19.09.010A.7) The findings in support of the Growth Management Ordinance conclude that the ordinance "does not affect the number of houses which may be built." (Municipal Code section 19.09.010B.3) Therefore, the parties acknowledge that the Chula vista Growth Management Ordinance completely occupies the topic of development timing and phasing and expressly precludes the adoption of housing caps, urban reserves or any other means by which the rate of development may be controlled or regulated. The city agrees that the Developer shall be entitled to, apply for and receive all permits necessary for the development of property, consistent with the Growth Management Ordinance, Existing Project Approvals, Future Discretionary Approvals and this Agreement. 5.5 Benefit of Vestinq. Nothing in this Agreement will be construed as limiting or impairing Developer's vested right, if any, to proceed with the development and use of the Property -10- pursuant to the Federal and state constitutions, and pursuant to statutory and decisional law. 5.6 vestinq of Entitlements. All rights conferred by this Agreement vest with the Effective Date hereof. The approval of Future Discretionary approvals shall not be deemed to limit Developer's rights authorized by this Agreement, and once such approvals are obtained they shall be vested to the same extent as the Existing Project Approvals. 6. DEVELOPMENT PROGRAM. 6.1 processinq of Future Discretionarv ADDrovals. city will accept and diligently process development applications and requests for Future Discretionary Approvals, or other entitlements with respect to the development and use of the property, provided said applications and requests are in accordance with this Agreement. city costs for processing work related to the Project, including hiring of additional city personnel and/or the retaining of professional consultants, will be reimbursed to city by Developer. 6.2 Lenqth of Validitv of Tentative Subdivision MaDS. Government Code section 66452.6 provides that tentative subdivision map(s) may remain valid for a length up to the term of a Develop- ment Agreement. The city agrees that tentative subdivision map(s) for the property shall be for a term of six (6) years and may be extended by the city council for a period of time not to exceed a total of twenty (20) years and in no event beyond the term of this Agreement. 6.3 Pre-Final MaD DeveloDment. If Developer desires to do certain work on the Property after approval of a tentative map (for example, grading) prior to the recordation of a final map, it may do so by obtaining a grading and/or other required approvals from the city which are authorized by the city prior to recordation of a final map. Such permit shall be issued to Developer, or its contractor, upon Developer's application, approval, and provided Developer posts a bond or other reasonably adequate security required by city in an amount to assure the rehabilitation of the land if the applicable final map does not record. 6.4 Final MaDS. 6.4.1 "A" MaDs and "B" MaDS. If Developer so elects, the city shall accept and process a master sUbdivision or parcel map ("A" Map) showing "Super Block" lots and backbone street dedications. "Super Block" lots shall be consistent with the GDP and subsequent sectional Plan Area plans, and shall not subdivide land into individual single- family lots. All "Super Blocks" created shall have access to dedicated public streets. The city shall not require improve- ment plans in order to record a final map for any "A" Map lots, but the city shall require bonding for the completion of backbone facilities prior to recording in an amount to be -11- determined by the city. Following the approval by city of any final map for an "A" Map lot and its recordation, Developer may convey the "super Block" lot. The buyer of a "super Block" lot shall then process final improvement plans and grading plans and a final map ("B" Map) for each "Super Block" lot which the city shall process. The "B" Maps shall be in substantial conformance with the related approved "A" Map. In the instance of the multi-family dwelling unit areas, a separate tentative subdivision map may be submitted to the city and the "B" Map(s) for these areas may be submitted to the City after the city planning commission approves said tentative subdivision map. 6.4.2 Recordation of Final Subdivision Map in Name of Builder or Third Partv. Developer may, if it so elects, convey to a Builder or third party any "super block" lot(s) shown on the recorded Superblock Final Map. In such case, the Builder or third party will (i) process any neces- sary final improvement and grading plans and a final map for each such "super block" lot, which map city shall accept and process as subsequent phases in a multi-phase project, (ii) enter into a subdivision improvement agreement with city with respect to the subdivision improvements which are required for such super block lot, and (iii) provide security and insurance satisfactory to city for the completion of the subdivision improvements. 6.4.3 Recordation of Final Subdivision Map in Developer's Name: Transfer of Obliqations Under Subdivision Improvement Aqreement (s) . If Developer so elects, it may defer the conveyance of any super block lot to a Builder or third party until after the final map of such super block lot has been recorded. If Developer elects to proceed in this manner, it will enter into city's standard subdivision improvement agreement(s) with city for the improvements required as a condition to the approval of such map(s). Upon sale to a Builder or third party, if such Builder or third party assumes Developer's obligations under the improvement agreement and provides its own security and insurance for the completion of the subdivision improvements as approved by the City, Developer shall be released from liability under the subdivision improvement agreement(s) and Developer's security shall be released. 6.4.4 Transfer of Riqhts and Obliqations of Development. Whenever Developer conveys a portion of the Property, the rights and obligations of this Agreement shall transfer in accordance with Section 15 herein. 7. DEVELOPER'S OBLIGATIONS. 7.1 Condition to Developer's Obliqations to Dedicate. Fund or Construct Public Facilities. Developer agrees to develop or provide the public improvements, facilities, dedications, or reservations of land and satisfy other exactions conditioning the -12- development of the Property which are set forth hereinbelow. The obligations of the Developer pursuant to this Agreement are conditioned upon: (i) the city not being in default of its obliga- tions under this agreement; and (ii) the city not preventing or unreasonably delaying the development of the property; and (iii) the Agreement having not been suspended in response to changes in state or federal law; and (iv) the City's obligations having not been suspended pursuant to Section 13.2. 7.2 Dedications and Reservations of Land for Public Purposes. The policies by which property will be required to be reserved, dedicated or improved for public purposes are identified in the Existing Project Approvals. A more precise delineation of the property to be preserved, dedicated or improved for public purposes shall occur as part of Future Discretionary Approvals, consistent with the Existing Project Approvals. 7.2.1 Dca~eatien af Lafla fer cn 125. De~cleper a~reea ~e eieaieatc laRd for E'i~ht of T".9ay purp0oco aFla 13reperty e~;Rea Si" t.he Dc.;cleper t.hat ie rcasoRably Rccezoary fer the ER 125 eeRfi~uratieR that ia ~cRerally dC13ietcel iF! the cn 125 araft ER~ireRmeft~al Im~aet Re~art/EtatemeRt aRa ao re~iBea iR the Fiflal Eft91irenmefital IJR13aet. Repsrt/ctatcmeRt. to reapeRS. te ~~~i;eeriR~, aesi~R, eRvireRmeRtal aRa similar eeRstr~~~~~. e eaieatieRS chall se te the city er ey an alterRat.e method aeec]?table te the city at SUCR time ac requested sy the city. City a~rees that iR the CO/CRt city shall Re~etiate:. o.J~:~ c;iiferRia TraRcpertatieR ~eRturco (CTV) sr ether tell re~d Builder allY part.ieipatieR or ae1~:aRtaEJes te city that. city shall share SHea riE!ht-s ~.:i tR su130cqucnt e~.JFlCr jrCfJiEicRt ef t.ho pre13ert}' , 7.2.2 PrCDCL'''.,:€: CenYCVaI;CC rlaI;. The City aRa t.ho Dc":'cleper ohall mut\:ially aE!Ycc upen a Pyc.Eioy":e ceR":c.y~~c~ rlall. The city cRall ill EJeea faith eSllciaer far aaeptieR sueh a ~laR aRa the Dc~elepcr chall eeR~€:y prepert.y aRa/er fees in liEa af laRa as set fert-a iR sueR rlan. 7.3 Growth Manaqement Ordinance. Developer shall commit the public facilities and City shall issue building permits as provided in this section. The city shall have the right to withhold the issuance of building permits any time after the city reasonably determines a Threshold has been exceeded, unless and until the Developer has mitigated the deficiency in accordance with the City's Growth Management Ordinance. Developer agrees that building permits may be withheld where the public facilities described in the Existing Project Approvals/- Future Discretionary Approvals required for a particular Threshold have not been committed. -13- In the event a Threshold is not met and future building permit issuance may be withheld, the notice provisions and procedures contained in section 19.09 .100C of the Municipal Code will be followed. In the event the issuance of building permits is suspended pursuant to the provisions herein, such suspension shall not constitute a breach of the terms of this Agreement by Developer or citv. Furthermore, any such suspension which is not caused by the actions or omissions of the Developer, shall toll the term of this Agreement as provided for in section 16.12 of this Agreement, and suspend the Developer's obligations pursuant to this Agreement. 7.3.1 Required Condemnation. The city and Developer recognize that certain of the public facilities identified in the Existing Project Approvals/Future Discretionary Approvals and required to comply with a threshold are located on properties which neither the Developer nor the city has, or will have, title to or control of. The city shall identify such property or properties and at the time of filing of the final map commence timely negotiations or, where the property is within the city's jurisdiction, commence timely proceedings pursuant to Title 7 (commencing with S 1230.010) of Part 3 of the Code of civil Procedure to acquire an interest in the property or properties. Developer's share of the cost involved in any such acquisition shall be based on its proportionate share of the public facility as defined in the Existing Project Approvals/Future Discretionary Approvals. Nothing in this Agreement shall be deemed to preclude the city from requiring the Developer to pay the cost of acquiring such off-site land. For that portion of the cost beyond the Developer's fair share responsibility, the City shall take all reasonable steps to establish a procedure whereby the develop- er is reimbursed for such costs beyond its fair share. 7.3.2 Information Reaardina Thresholds. Upon Developer's written requests of the city Manager, the city will provide Developer with information regarding the current status of a Threshold. Developer shall be responsible for any staff costs incurred in providing said written response. 7.4 Imorovements Required bv a Subdivision Mao. Asmay be required pursuant to the terms of a subdivision map, it shall be the responsibility of Developer to construct the improvements required by a sUbdivision map. Where Developer is required to construct a public improvement which has been identified as the responsibility of another party or to provide public improvements of supplemental size, capacity, number or length benefiting property not within the subdivision, city shall process a reim- bursement agreement to the Developer in accordance with Article 6 of Chapter 4 of the Subdivision Map Act, commencing with Government Code section 66485, and Section 7.5, below. 7.5 Partv. or Are Developer may Facilities Which Are the Obliqations of Another of Excessive Size. caoacitv. Lenqth or Number. offer to advance monies and/or construct public -14- improvements which are the responsibility of another land owner, or outside the city's jurisdictional boundaries, or which are of supplemental size, capacity, number or length for the benefit of land not within the Property. city, where requesting such funding or construction of oversized public improvements, shall consider after a public hearing, contemporaneous with the imposition of the obligation, the formation of a reimbursement district, assessment district, facility benefit assessment, or reimbursement agreement or other reimbursement mechanism. 7.6 Pioneerinq of Facilities. To the extent Developer itself constructs (Le., "pioneers") any public facilities or public improvements which are covered by a DIF Program, Developer shall be given a credit against DIFs otherwise payable, subject to the city's Director of Public Works reasonable determination that such costs are allowable under the applicable DIF Program. It is specifically intended that Developer be given DIF credit for the DIF Program improvements it makes. The fact that such improvements may be financed by an assessment district or other financing mechanism, shall not prevent DIF credit from being given to the extent that such costs are allowed under the applicable DIF Program 7.7 Insurance. insured for all insurance Project as pertains to the the project. Developer shall name city as additional policies obtained by Developer for the Developer's activities and operation on 7.8 Other Land Owners. Developer hereby agrees to dedicate adequate rights-Of-way within the boundaries of the Property for other land owners to "Pioneer" public facilities on the Property; provided, however, as follows: (i) dedications shall be restricted to those reasonably necessary for the construction of facilities identified in the City's adopted public facility plans; (ii) this provision shall not be binding on the successors-in- interest or assignees of Developer following recordation of the final "Super Block" or "A" Map; and (iii) the City shall use its reasonable best efforts to obtain agreements similar to this subsection from other developers and to obtain equitable reimburse- ment for Developer for any excess dedications. 8. DEVELOPMENT IMPACT FEES. 8.1 Existinq Development Impact Fee Proqram Pavments. Developer shall pay to the city a DIF, or construct improvements in lieu of payment, for improvements which are conditions of a tentative sUbdivision map upon the issuance of building permits (s) , or at a later time as specified by City ordinance, the Subdivision Map Act, or Public Facility Financing Plan (PFFP). The DIF will be in the amount in effect at the time payment is made and may only be increased pursuant to section 8.6 herein. 8.2 other Undeveloped Properties. The city will use its reasonable best efforts to impose and collect, or cause the imposi tion and collection of, the same DIF program on all the undeveloped real properties which benefit from the provision of the -15- public facility through the DIF program, or provided as a condition of Project Approvals. 8.3 Use of Development Impact Fee Proqram. The DIF amounts paid to the City by Developer and others with respect to the Area of Benefit shall be placed by the city in a capital facility fund account established pursuant to California Government Code sections 66000-66009. The city shall expend such funds only for the Projects described in the adopted fee program as may be modified from time to time. The city will use its reasonable best efforts to cause such Projects to be completed as soon as practica- ble; however, the city shall not be obligated to use its general funds for such Projects. 8.4 withholdinq of Permits. Developer agrees that city shall have the right to withhold issuance of the building permit for any structure or improvement on the Property unless and until the DIF is paid for such structure or improvement. 8.5 Development Impact Fee Credit. upon the completion and acceptance by the city of any public facility, the city shall immediately credit Developer with the appropriate amount of cash credits ("EDUs") as determined by Developer and city. However, if the improvements are paid for through an Assessment District, the city shall credit the Developer with the appropriate number of Equivalent Dwelling unit Credits (EDU's). Developer shall be entitled to apply any and all credits accrued pursuant to this subsection toward the required payment of future DIF for any phase, stage or increment of development of the project. 8.6 Modification of Development Impact Fees. The parties recognize that from time to time during the duration of the Agreement it will be necessary for the city to update and modify its DIF fees. Such reasonable modifications are contemplated by the city and the Developer and shall not constitute a modification to the Agreement so long as: (i) the modification incorporates the reasonable costs of providing facilities identified in the Existing Project Approvals; (ii) are based upon methodologies in substantial compliance with the methodology contained in the existing DIF programs; or other methodology approved by the city Council following a public hearing; (iii) complies with the provisions of Government Code sections 66000-66009. 8.7 Standards for Financinq Obliqations of Owner. In connection with the development of the Property, the following standards regarding the financing of public improvements shall apply: 8.7. I Owner shall pay its fair share for the interchanges described in Paragraph 5.1.1 5.1.3, based upon the number of dwelling units or equivalent dwellings of development allowed on the Property as compared to the total dwelling units or equivalent dwelling units allowed on properties served by such interchanges. -16- 8.7.2 Owner shall participate in the DIF Program for the Otay Valley Parcel with other owners in proportion to the total dwelling units or equivalent dwelling units allowed on the Property as compared with the total of such units allowed on properties in that particular DIF or by some other equitable methodology decided by the city council. 8.7.3 The City shall diligently pursue the requirements that the Eastern Territories' DIF requires offsite third parties and adjacent jurisdictions to bear their fair share of all otay River valley crossings. 9. CITY OBLIGATIONS. 9.1 Urban Infrastructure. To the extent it is within the authority of the city to provide, city shall accommodate urban infrastructure to the project, consistent with Existing Project Approvals. Where it is necessary to utilize city property to provide urban infrastructure consistent with the Existing Project Approvals, the city agrees to make such land available for such uses, provided that the city if it so chooses is compensated at fair market value for the property. To the extent that the provision of urban infrastructure is within the authority of another public or quasi-public agency or utility, the City agrees to fully cooperate with such agency or agencies to accommodate the urban infrastructure, consistent with Existing Project Approvals. Urban infrastructure shall include, but not be limited to gas, electricity, telephone, cable and facilities identified in the Otay Ranch Facility Implementation Plan. 9.2 Sewer capacity. The city agrees to provide adequate sewer capacity for the project, upon the payment of ordinary and necessary sewer connection, capacity and/or service fees. 10. ANNUAL REVIEW. 10.1 citv and Owner Responsibilities. city will, at least every twelve (12) months during the Term of this Agreement, pursuant to California Government Code 565865.1, review the extent of good faith substantial compliance by Owner with the terms of this Agreement. Pursuant to California Government Code section 65865.1, as amended, Owner shall have the duty to demonstrate by substantial evidence its good faith compliance with the terms of this Agreement at the periodic review. Either City or Owner may address any requirement of the Agreement during the review. 10.2 Evidence. The parties recognize that this Agreement and the documents incorporated herein could be deemed to contain hundreds of requirements and that evidence of each and every requirement would be a wasteful exercise of the parties' resources. Accordingly, Developer shall be deemed to have satisfied its good faith compliance when it presents evidence of substantial com- pliance with the major provisions of this Agreement. Generalized evidence or statements shall be accepted in the absence of any evidence that such evidence is untrue. -17- 10.3 Review Letter. If Owner is found to be in com- pliance with this Agreement after the annual review, city shall, within forty-five (45) days after Owner's written request, issue a review letter in recordable form to Owner ("Letter") stating that based upon information known or made known to the Council, the city Planning commission and/or the city Planning Director, this Agreement remains in effect and Owner is not in default. Owner may record the Letter in the Official Records of the County of San Diego. 10.4 Failure of Periodic Review. City's failure to review at least annually Owner's compliance with the terms and conditions of this Agreement shall not constitute, or be asserted by City or Owner as, a breach of the Agreement. 11. DEFAULT. 11.1 Events of Default. A default under this Agreement shall be deemed to have occurred upon the happening of one or more of the following events or conditions: 11.1.1 A warranty, representation or statement made or furnished by Owner to city is false or proves to have been false in any material respect when it was made. 11.1.2 A finding and determination by City made following a periodic review under the procedure provided for in California Government Code section 65865.1 that upon the basis of substantial evidence Owner has not complied in good faith with one or more of the terms or conditions of this Agreement. consider submitted 11.1.3 City does not accept, requested development permits in accordance with the provisions timely review, or or entitlements of this Agreement. 11.1.4 Any other act or omission by city or Owner which materially interferes with the terms of this Agreement. 11.2 Procedure Upon Default. 11.2.1 Upon the occurrence of default by the other party, city or Owner may terminate this Agreement after providing the other party thirty (30) days written notice specifying the nature of the alleged default and, when appropriate, the manner in which said default may be satis- factorily cured. After proper notice and expiration of said thirty (30) day cure period without cure, this Agreement may be terminated. In the event that City's or Owner's default is not subject to cure within the thirty (30) day period, city or Owner shall be deemed not to remain in default in the event that city or Owner commences to cure within such thirty (30) day period and diligently prosecutes such cure to completion. Failure or delay in giving notice of any default shall not constitute a waiver of any default, nor shall it change the -18- time of default. Notwithstanding any other provision of this Agreement, city reserves the right to formulate and propose to Owner options for curing any defaults under this Agreement for which a cure is not specified in this Agreement. 11. 2.2 city does not waive any claim of defect in performance by Owner if, on periodic review, city does not propose to modify or terminate this Agreement. 11.2.3 subject to Paragraph 16.12 of this Agreement, the failure of a third person shall not excuse a party's nonperformance under this agreement. 11.2.4 All other remedies at law or in equity which are consistent with the provisions of this Agreement are available to City and Owner to pursue in the event there is a breach provided however. neither partv shall have the remedY of monetary damaqes aqainst the other. except for an award of 1itiqation costs and attorney's fees. . 12. ENCUMBRANCES AND RELEASES ON PROPERTY. 12.1 Discretion to Encumber. This Agreement shall not prevent or limit Owner in any manner at Owner's sole discretion, from encumbering the Property, or any portion of the Property, or any improvement on the Property, by any mortgage, deed of trust, or other security device securing financing with respect to the Property or its improvement. 12.2 Mortqaqee Riqhts and Obliqations. The mortgagee of a mortgage or beneficiary of a deed of trust encumbering the property, or any part thereof, and their successors and assigns shall, upon written request to city, be entitled to receive from city written notification of any default by Owner of the performance of Owner's obligations under the Agreement which has not been cured within thirty (30) days following the date of default. 12.3 Releases. City agrees that upon written request of Owner and payment of all fees and performance of the require- ments and conditions required of Owner by this Agreement with respect to the Property, or any portion thereof, City may execute and deliver to Owner appropriate release(s) of further obligations imposed by this Agreement in form and substance acceptable to the San Diego county Recorder and title insurance company, if any, or as may otherwise be necessary to effect the release. city Manager shall not unreasonably withhold approval of such release(s). 12.4 Obliqation to Modifv. city acknowledges that the lenders providing financing for the Project may require certain modifications to this Agreement and city agrees, upon request from time to time, to meet with Owner and/or representatives of such lenders to negotiate in good faith any such requirement for -19- modificat~on. city will not unreasonably withhold its consent to any such requested modification. 13. MODIFICATION OR SUSPENSION. 13.1 Modification to Aqreement bv Mutual Consent. This Agreement may be modified, from time to time, by the mutual consent of the parties only in the same manner as its adoption by an ordinance as set forth in California Government Code -sections 65867, 65867.5 and 65868. The term, "this Agreement" as used in this Agreement, will include any such modification properly approved and executed. 13.2 Unforeseen Health or Safetv Circumstances. If, as a result of facts, events, or circumstances presently unknown, unforeseeable, and which could not have been known to the parties prior to the commencement of this Agreement, city finds that failure to suspend this Agreement would place the residents of City in a severe and immediate emergency to their health or safety. 13.2.1 Notification of Unforeseen Circumstances. Notify Developer of (i) city's determination; and (ii) the reasons for City's determination, and all facts upon which such reasons are based; 13.2.2 Notice of Hearinq. Notify Developer in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Developer a minimum of ten (10) days prior to the hearings described in section 13.2.3, all documents related to such determination and reasons therefor; and 13.2.3 Hearinq. Hold a hearing on the deter- mination, at which hearing Developer will have the right to address the city Council. At the conclusion of said hearing, City may take action to suspend this Agreement as provided herein. The City may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the parties, the City finds failure to suspend would place the residents of the City in a severe and immediate emergency to their health or safety. 13.3 Chanqe in State or Federal Law or Requlations. If any state or federal law or regulation enacted during the Term of this Agreement, or the action or inaction of any other affected governmental jurisdiction, precludes compliance with one or more provisions of this Agreement, or requires changes in plans, maps, or permits approved by city, the parties will act pursuant to Sections 13.3.1 and 13.3.2, below. 13.3.1 Notice: Meetinq. The party first becoming aware of such enactment or action or inaction will provide the other party(ies) with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of -20- this Agreement. The parties will promptly meet and confer in a good faith and reasonable attempt to modify or suspend this Agreement to comply with such federal or state law or regula- tion. 13.3.2 Hearina. If an agreed upon modification or suspension would not require an amendment to this Agree- ment, no hearing shall be held. Otherwise, the matter of such federal or state law or regulation will be scheduled for hearing before the city. Fifteen (15) days' written notice of such hearing shall be provided to Developer, and the city, at such hearing, will determine and issue findings on the modification or suspension which is required by such federal or state law or regulation. Developer, at the hearing, shall have the right to offer testimony and other evidence. If the parties fail to agree after said hearing, the matter may be submitted to mediation pursuant to subsection 13.3.3, below. Any modification or suspension shall be taken by the affirma- tive vote of not less than a majority of the authorized voting members of the city. Any suspension or modification may be subject to judicial review in conformance with subsection 16.19 of this Agreement. 13.3.3 Mediation of Disputes. In the event the dispute between the parties with respect to the provisions of this paragraph has not been resolved to the satisfaction of both parties fOllowing the city hearing required by subsection 13.3.2, the matter shall be submitted to mediation prior to the filing of any legal action by any party. The mediation will be conducted by the San Diego Mediation Center; if San Diego Mediation Center is unable to conduct the mediation, the parties shall submit the dispute for mediation to the Judicial Arbitration and Mediation Service or similar organization and make a good faith effort to resolve the dispute. The cost of any such mediation shall be divided equally between the Developer and city. 13.4 Natural Communities Conservation Act (NCCP). The parties recognize that Developer. and the city are individually negotiating agreements with the united States Fish and wildlife Service ("USF&W") and the California Department of Fish and Game pursuant to the ongoing regional effort to implement the Natural communities Conservation Act ("NCCP"), locally proposed to be implemented through the Multi-Species Conservation Program ("MSCP"). The parties further recognize that implementation of the agreements may necessitate modification to the Existing Project Approvals. The parties agree to utilize their best efforts to implement these agreements, once executed, through the timely processing of modifications to the Existing Project Approvals as they relate to the Property. The Developer agrees to pay the reasonable city cost for processing work related to the modifica- tions. Once such modifications are obtained they shall be vested to the same extent as Existing Project Approvals. -21- 14. DISTRICTS. PUBLIC FINANCING MECHANISMS. This Agreement and the Existing Project Approvals recognize that assessment districts, community facility districts, or other public financing mechanisms, may be necessary to finance the cost of public improvements borne by this Project. If Developer, pursuant to the Existing project Approvals/Future Discretionary Approvals, is required to install improvements through the use of assessment districts, community facility districts, or other public financing mechanisms, the city shall initiate and conclude appropriate proceedings for the formation of such financing district or funding mechanism, under applicable laws or ordinances. Developer may request that the city utilize any other financing methods which may become available under City laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be paid by Developer subject to reimbursement, as may be legally authorized out of the proceeds of any financing district or funding mechanism. 15. ASSIGNMENT AND DELEGATION. 15.1 Assiqnment. Owner shall have the right to transfer or assign its interest in the Property, in whole or in part, to any persons, partnership, joint venture, firm, or corpora- tion at any time during the Term of this Agreement without the consent of city. Owner also shall have the right to assign or transfer all or any portion of its interest or rights under this Agreement to third parties acquiring an interest or estate in the Property at any time during the Term of this Agreement without the consent of city. 15.2 Deleqation. In addition, Owner shall have the right to delegate or transfer its obligations under this Agreement to third parties acquiring an interest or estate in the Property after receiving the prior written consent of the City Manager, which consent shall not be unreasonably with- held, delayed, or conditioned. Once the city Manager has consented to a transfer, delivery to and acceptance by the City Manager of an unqualified written assumption of Owner's obligations under this Agreement by such transferee shall relieve Owner of the obligations under this Agreement to the extent the obligations have been expressly assumed by the transferee. Such transferee shall not be entitled to amend this Agreement without the written consent of the entity that, as of the Effective Date, is Owner, which consent shall not be unreasonably withheld, delayed, or conditioned. The entity that is Owner as of the Effective Date, however, shall be entitled to amend this Agreement without the written consent of such transferee. 16. MISCELLANEOUS PROVISIONS. 16.1 Bindinq Effect of Aqreement. Except to the extent otherwise provided in this Agreement, the burdens of this Agreement -22- bind, and the benefits of this Agreement inure, to city's and Owner's successors-in-interest and shall run with the land. 16.2 Relationship of city and Owner. The contractual relationship between city and Owner arising out of this Agreement is one of independent contractor and not agency. This Agreement does not create any third-party beneficiary rights. 16.3 Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person, or mailed by first-class or certified mail, postage prepaid, addressed as follows: If to city, to: City of Chula vista 276 Fourth Avenue Chula vista, CA 91910 Attention: City Manager If to Owner, to: stephen and Mary Birch Foundation 705 Severn Road suite 1048 Wilmington, DE 19803 Attention: Patrick Patek with a copy to: STEPHENSON, WORLEY, GARRATT SCHWARTZ, HEIDEL & PRAIRIE 101 west Broadway, Suite 1300 San Diego, CA 92101 Attention: Donald R. Worley, Esq. City or Owner may change its address by giving notice in writing to the other. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given upon personal delivery, or, if mailed, two (2) business days following deposit in the United States mail. 16.4 Rules of Construction. In this Agreement, the use of the singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory; "may" is permissive. 16.5 Entire Aqreement. Waivers. and Recorded Statement. This Agreement constitutes the entire understanding and agreement of city and Owner with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between city and Owner respecting this Agreement. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of city and Owner. Upon the completion of performance of this Agreement, or its revocation or termination, a statement evidencing completion, revocation, or termination signed by the appropriate agents of city shall be recorded in the Official Records of San Diego County, California. 16.6 proiect as a Private Undertakinq. It is specifically understood by City and Owner that (i) the Project is -23- a private development; (ii) City has no interest in or responsibilities for or duty to third parties concerning any improvements to the Property until City accepts the improvements pursuant to the provisions of the Agreement or in connection with subdivision map approvals; and (iii) Owner shall have the full power and exclusive control of the Property subject to the obligations of Owner set forth in this Agreement. 16.7 Incorporation of Recitals. The recitals set forth in Paragraph 1 of this Agreement are part of this Agreement. 16.8 captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement. 16.9 Consent. Where the consent or approval of City or Owner is required or necessary under this Agreement, the consent or approval shall not be unreasonably withheld, delayed, or con- ditioned. 16.10 Covenant of cooperation. cooperate and deal with each other in good other in the performance of the provisions City and Owner shall faith, and assist each of this Agreement. 16.11 ReCordinq. The City Clerk shall cause a copy of this Agreement to be recorded with the Office of the County Recorder of San Diego county, California, within ten (10) days following the Effective Date. 16.12 Delav. Extension of Time for Performance. In addition to any specific provision of this Agreement, performance by either city or Owner of its obligations hereunder shall be excused, and the Term of this Agreement and the Development Plan extended, during any period of delay caused at any time by reason of any event beyond the control of city or Owner which prevents or delays and impacts city's or Owner's ability to perform obligations under this Agreement, including, but not limited to, acts of God, enactment of new conflicting federal or state laws or regulations (example: listing of a species as threatened or endangered), judicial actions such as the issuance of restraining orders and injunctions, riots, strikes, or damage to work in process by reason of fire, floods, earthquake, or other such casualties. If city or Owner seeks excuse from performance, it shall provide written notice of such delay to the other within thirty (30) days of the commencement of such delay. If the delay or default is beyond the control of City or Owner, and is excused, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. 16.13 Covenant of Good Faith and Fair Dealinqs. No party shall do anything which shall have the effect of harming or injuring the right of the other parties to receive the benefits of this Agreement; each party shall refrain from doing anything which -24- would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates that such party shall do in order to accomplish the objectives and purposes of this Agreement. 16.14 ODeratinq Memorandum. The parties acknowledge that the provisions of this Agreement require a close degree of cooperation between City and Developer, and that the refinements and further development of the Project may demonstrate that minor changes are appropriate with respect to the details of performance of the parties. The parties, therefore, retain a certain degree of flexibility with respect to those items covered in general under this Agreement. When and if the parties mutually find that minor changes or adjustments are necessary or appropriate, they may effectuate changes or adjustments through operating memoranda approved by the parties. For purposes of this Section 16.14, the City Manager, or his designee, shall have the authority to approve the operating memoranda on behalf of City. No operating memoranda shall require notice or hearing or constitute an amendment to this Agreement. 16.15 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 16.16 Amendment or Cancellation of Aqreement. This Agreement may be amended from time to time or canceled by the mutual consent of City and Owner only in the same manner as its adoption, by an ordinance as set forth in California Government Code section 65868, and shall be in a form suitable for recording in the Official Records of San Diego County, California. The term "Agreement" shall include any such amendment properly approved and executed. City and Owner acknowledge that the provisions of this Agreement require a close degree of cooperation between them, and that minor or insubstantial changes to the Project and the Development Plan may be required from time to time to accommodate design changes, engineering changes, and other refinements. Accordingly, changes to the Project and the Development Plan that do not result in a change in use, an increase in density or intensity of use, cause new or increased environmental impacts, or violate any applicable health and safety regulations, may be considered minor or insubstantial by the city Manager and made without amending this Agreement. 16.17 EstotJDel Certificate. Within 30 calendar days following a written request by any of the parties, the other parties to this Agreement shall execute and deliver to the requesting party a statement certifying that (i) this Agreement is unmodified and in full force and effect, or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications; (ii) there are no known current uncured defaults under this Agreement, or specifying the dates and nature of any such default; and (iii) any other reasonable information requested. The failure to deliver such a statement within such time shall -25- constitut~ a conclusive presumption against the party which fails to deliver such statement that this Agreement is in full force and effect without modification, except as may be represented by the requesting party, and that there are no uncured defaults in the performance of the requesting party, except as may be represented by the requesting party. 16.18 Severabilitv. If any material provision of this Agreement is held invalid, this Agreement will be automatically terminated with neither partv bearinq anv liabilitv hereunder. Notwithstandinq the foreqoinq. lil'lless within 15 days after such provision is held invalid, iL-the party holding rights under the invalidated provision affirms the balance of this Agreement in writing. this Aqreement shall not be terminated. This provision will not affect the right of the parties to modify or suspend this Agreement by mutual consent pursuant to paragraph 12.4. 16.19 Institution of Leqal Proceedinq. In addition to any other rights or remedies, any party may institute legal action to cure, correct, or remedy any default, to enforce any covenants or agreements herein, or to enjoin any threatened or attempted violation thereof; to recover damages for any default as allowed bv this Aareement or to obtain any remedies consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the county of San Diego, State of California. 16.20 Attornevs' Fees and Costs. If any party commences litigation or other proceedings (including, without limitation, arbitration) for the interpretation, reformation, enforcement, or rescission of this Agreement, the prevailing party, as determined by the court, will be entitled to its reasonable attorneys' fees and costs. 16.21 Hold Harmless. Developer agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from the direct or indirect operations of Developer or those of its contractors, subcontractors, agents, employees or other persons acting on Developer's behalf which relate to the Project. Developer agrees to and shall defend city and its officers, agents, employees and representatives from actions for damage caused or alleged to have been caused by reason of Developer's activities in connection with the Project. Developer agrees to indemnify, hold harmless, pay all costs and provide a defense for city in any legal action filed in a court of competent jurisdiction by a third party challenging the validity of this Agreement. The provisions of this Section 16.21 shall not apply to the extent such damage, liability or claim is caused by the intentional or negligent act or omission of city, its officers, agents, employees or representatives. -26- SIGNATURE PAGE TO PRE-ANNEXATION DEVELOPMENT AGREEMENT. Dated this ____ day of , 1996. "CITY" CITY OF CHULA VISTA By: SHIRLEY HORTON, MAYOR "OWNER" STEVEN AND MARY BIRCH FOUNDATION By: PATRICK PATEK, PRESIDENT I hereby approve the form and legality of the foregoing Pre- Annexation Development Agreement this day of , 1996. Ann Moore, Interim City Attorney City of Chula vista By: -27- EXHIBIT A , \-- "-. i ~(f? -.- ..~- ---- -=...::.:;: - CllY OF CHULA VISTA PLANNING DEPARTMENT STEPHEN AND MARY BIRCH FOUNDATION 7/3/96 o z W t? W ..J >- .... '" "'''0 V; C .- :J > 0 !;!DJ :J >- ~~ uu '" - <I).... .- 0 '" > !-' "'c "'....'" -"'~ :J.c..::: .c 0..... uv>E "0 '" "0 cc "'0 E" '" E><U) 0"'", uc:", "'c:.... D::c:(c:( I T"" . o Z t: ctI 0 ..... .- (I)..... ._ ctI tC >.~ ctI t: ... - - :Q::I5> .- J:: I- ~UO WI+-Q) 00:: ~"5 .- t: U ctI 0:: >- ctI ..... o - c: "0'" ...E U).c 0(.) 0.",,,, 0-'" ........... a.Clc:( z< " ~ ~ ~ ~ ~ ~~ ~~! O~ I ';;('\ U ~:s ~ ~'( U U~ ~ U ~ o ~ <,; ;.;: ra "0 ... C .... ",-c:( ..J.~ >- >-u"O ","':J _0..;:; OU)U) ~m '" .E :!E N- ~I o I _dJ I I I \.!:;, , EXHIBIT .C. I I Pre-annexation Development Agreement Planning Area Assessor Ownership Acreage Parcel Numbers Ranch House 595.{)90.{)5 Stephen & Mary Birch 71.56 Ranch House 595.{)90.{)6 Steohen & Mary Birch 0.22 Ranch House 595.{)90.{)8 Steohen & Mary Birch 96.25 168.03 Total -=1/0 PRE-ANNEXATION DEVELOPMENT AGREEMENT THIS PRE-ANNEXATION DEVELOPMENT AGREEMENT ("Agreement") is made effective on the date hereinafter set forth below by and among the CITY OF CHULA VISTA ("City") and SNMB, LTD. ("SNMB"), who agree as follows: 1. RECITALS. following facts: This Agreement is made with respect to the 1. 1 Owner. The owners of the properties subj ect to this Agreement (hereinafter collectively referred to as "Owner" or as "Developer") are as follows: 1.1.1 SNMB is the owner of approximately 1,827 acres of undeveloped real property ("the SNMB Property") in the unincorporated area of the County of San Diego ("County"), described in Exhibits "A" and "E, attached hereto and incorpo- rated herein by this reference. 1.1. 2 The SNMB Property (the "Property") is part of a larger area commonly known, and referred to herein, as "the Otay Valley Parcel of Otay Ranch." Portions of SNMB ProDertv are located in Villaqes 2. 3. 4. 7. 8. 9 and Planninq Areas 12 and 18B of the Otav Ranch ProDertv. 1. 2 ci tv. The City of Chula vista is a municipal corporation with Charter city Dowers aHa aH incorporated ~ within the County. 1.3 Code Authorization and Acknowledqments. 1.3.1 city is authorized pursuant to its charter. self-rule Dowers and California Government Code sections 65864 through 65869.5 to enter into development agreements for the purpose of establishing certainty for both city and owners of real property in the development process. 1.3.2 Government Code section 65865 expressly authorizes a city to enter into a development agreement with any person having a legal or equitable interest in real property in unincorporated territory within that city's sphere of influence for the development of property as provided in the Development Agreement Law; provided that the agreement shall not become operative unless annexation proceedings annexing the property to the city are completed within the time specified by the agreement. 1.3.3 City enters into this Agreement pursuant to the provisions of the California Government Code, its home- rule powers, and applicable City ordinances, rules, regula- tions and policies. -1- 1.3.4 city and Owner intend to enter into this aareement for the followina DurDoses: aelll'la,llea-:Jc 1 1.3.4.1 To Tais A~rcemeRt assures adequate public facilities at the time of development. 1.3.4.2 lQ Tl'lis h-:JreemcRt assures development in accordance with city's capital improvement plans. 1.3.4.3 This ~~recmcAt eeRstitates a earreAt exereise af city's paliee pe,:eFs t to provide certainty to Owner in the development approval process by vesting the permitted use(s), density, intensity of use, and the timing and phasing of development as described in the Development Plan, which is defined in Paragraph 2.4 of this Agreement, in exchange for Owner's entering into this Agreement and for its commitment to support the Annexation described below. 1.3.4.4 TaiG A~ree"'eRt ,:ill To permit achievement of City growth management goals and objec- tives. 1.3.4.5 Tais }'.~reeH\ef\t '.:ill To allow City to realize significant economic, recreational, park, open space, social, and public facilities benefits for the city, some of which are of regional significance. 1.3.4.6 Tais A~reelllef\t ~ill To provide and assure that the City receive sales tax revenues, increase in the property tax base, residential housing and other development, sewer, water and street facilities. 1.3.4.7 Tl'lis A~FeemCf\t ~ To provide and assure that the City receives public facilities in excess of project generated impacts and such facilities shall be of supplemental size, number capacity or length, which shall be provided earlier than could be provided either by funds from the City or than would strictly be necessary to mitigate project related impacts at any development phase. 1. 3.4.8 TRis A~rcel'flef\t o.:ill To provide the city the developer's support to secure annexation of the lands depicted in Exhibit "B". 1.3.4.9 TRis A~Feel'flef\t o.:ill To enable the city to secure title to the land within the boundaries of the Property necessary to complete the Chula vista greenbelt system as defined in the Chula vista General Plan. 1. 3.4.10 TRis A~reeH\cf\t ',:ill To assure the City that the Developer will dedicate rights-of-way to the city for SR-125, a route which, when constructed, -2- will substantially alleviate congestion on I-80S and 1-5, and also will facilitate the economic development of Chula vista. 1.3.4.11 Because of the complexities of the financing of the infrastructure, park, open space, and other dedications, and regional and community facilities, and the significant nature of such facilities, certainty in the development process is an absolute necessity. The phasing, timing, and development of public infrastructure necessitate a significant commitment of resources, planning, and effort by Owner for the public facilities financing, construction, and dedication to be success- fully completed. In return for Owner's participation and commitment to these significant contributions of private resources for public purposes and for Owner's consent to the Annexation described below, city is willing to exercise its authority to enter into this Agreement and to make a commitment of certainty for the development process for the Property. 1.3.4.12 In consideration of Owner's agreement to provide the significant benefits and for Owner's consent to the Annexation described below, City hereby grants Owner assurances that it can proceed with develop- ment of the Property in accordance with City's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement sub;ect to section 5.2.1 below. Owner would not enter into this Agreement or agree to provide the public benefits and improvements described in this Agreement if it were not for the commitment of City that the Property subject to this Agreement can be developed in accordance with city's ordinances, rules, regulations, and policies existing as of the effective date of this Agreement sub;ect to section 5.2.1 below. 1.4 The Annexation. The city has applied to the Local Agency Formation Commission ("LAFCO") for annexation of Sphere of Influence Planning Area 1 liThe Otay Parcel ", Planning Area 2 "Inverted L" and the Mary Patrick Estate Parcel (see Attachment "B") . 1.5 Sphere of Influence. A city application is pending before LAFCO to have the Otay Valley Parcel included within city's sphere of influence. On February 5, 1996 the Local Agency Formation commission approved the inclusion of approximately 7,600 acres into the city Sphere of Influence (Sphere of Influence Planning Area 2 and the northern two thirds of Planning Area 1), and designated the otay River Valley an Village 3 as special study areas. 1.6 Plannina Documents. On October 28, 1993, city and County adopted the otay Ranch General Development Plan/Subregional Plan (lithe GDpII) which includes the Otay Ranch Village Phasing -3- Plan, Facility Implementation Plan, Resource Management Plan and Service Revenue Plan, for approximately 23,000 acres of the otay Ranch, including the Otay valley Parcel and the SNMB property. 1. 7 Owner Consent. city desires to have the cooperation and consent of Owner to include the Property in the Annexation in order to better plan, finance, construct and maintain the infra- structure for the Otay Valley Parcel; and SNMB desires to give their cooperation and consent, provided that they obtain certain assurances, as set forth in this Agreement. 1.8 citv Ordinance. Auaust ..Jlily 9, 1996 is the date of adoption by the city Council of Ordinance No. 2679 approving this Agreement. The ordinance shall take effect and be in full force on the effective date of Annexation. 2. DEFINITIONS. otherwise requires: In this Agreement, unless the context 2.1 "Annexation" means the proposed annexation of that portion of the Otay Ranch into the city as depicted on Exhibit "D". 2.2 "City" means the City of Chula Vista, in the County of San Diego, State of California. 2.3 "County" means the county of San Diego, State of California. 2.4 "Development Plan" means the GDP. 2.5 "GDP" means the General Development Planl Subregional Plan for the Otay Ranch, described in Paragraph 1.6, above. 2.6 "Owner" or "Developer" means the person, persons, or entity having a legal and equitable interest in the Property, or parts thereof, and includes Owner's successors-in-interest. 2.7 "Project" means the physical development of the private and public improvements on the Property as provided for in the Existing Project Approvals and as may be authorized by the city in Future Discretionary Approvals. 2.8 "Property" means the real property described in Paragraph 1.1.1. 2.9 The "Term" of this Agreement means the period defined in Paragraph 3, below. 2.10 "Builder" means developer to whom Developer has sold or conveyed property within the Property for purposes of its improvement for residential, commercial, industrial or other use. 2.11 "CEQA" means the California Environmental Quality Act, California Public Resources Code section 21000, et seq. -4- 2.12 "City Council" means the City of Chula vista City Council. 2.13 "Commit" or "Committed" means all of the following requirements have been met with respect to any public facility: 2.13.1 For a public facility within the City's jurisdictional boundaries and a responsibility of the develop- er. 2.13.1.1 All discretionary permits required of the Developer have been obtained for construction of the public facility; 2.13.1.2 Plans for the construction of the public facility have all the necessary governmental approvals; and 2.13.1.3 Adequate funds (i.e., letters of credit, cash deposits, performance bonds or land secured public financing, including facility benefit assessments, Mello-Roos assessment districts of similar assessment mechanism) are available such that the City can construct the public facility if construction has not commenced within thirty (30) days of issuance of a notice to proceed by the Director of Public Works, or construction is not progressing towards completion in a reasonable manner as reasonably deemed by the Director of Public Works. 2.13.2 For a public facility within the city's jurisdictional boundaries, but to be provided by other than Developer. 2.13.2.1 Developer's proportionate share of the cost of such public facility as defined in the existing Project Approvals and Future Discretionary Approvals has been provided or assured by Developer through the payment or impositions of development impact fee or other similar exaction mechanism. 2.13.3 For public facility not within City's jurisdictional boundaries: the cost existing Approvals Developer of Public 2.13.3.1 Developer's proportionate share of of such public facility as defined in the Project Approvals and Future Discretionary has been provided for or otherwise assured by to the reasonable satisfaction .of the Director Works. 2.14 "Development Impact Fee (DIF)" means fees imposed upon new development pursuant to the City of Chula vista Development Impact Fee Program, for example, including but not limited to the Transportation Development Impact Fee Program, the -5- Interim SR-125 Development Impact Fee Program, the Salt Creek Sewer DIF and the Public Facilities DIF. 2.15 "Existing Project Approvals" means all discretionary approvals affecting the Project which have been approved or established in conjunction with, or preceding, the effective date consisting of, but not limited to the GDP, the Chula Vista General Plan, the otay Ranch Reserve Fund Program adopted pursuant to Resolution 18288, and the Phase I and II Resource Management Plan (RMP), as may be amended from time to time consistent with this agreement. 2.16 "Final Map(s)" means any final subdivision map for all or any portion of the Property other than the Superblock Final Map ("A" Maps). 2.17 "Future Discretionary Approvals" means all permits and approvals by the City granted after the effective date and excluding existing Project Approvals, including, but not limited to: (i) grading permits; (ii) site plan reviews; (iii) design guidelines and reviews; (iv) precise plan reviews; (v) subdivisions of the Property or re-subdivisions of the Property previously subdivided pursuant to the Subdivision Map Act; (vi) conditional use permits; (vii) variances; (viii) encroachment permits; (ix) sectional Planning Area plans; (x) Preserve Conveyance Plan and (xi) all other reviews, permits, and approvals of any type which may be required from time to time to authorize public or private on- or off-site facilities which are a part of the Project. 2.18 "Planning Commission" means the Planning commission of the City of Chula Vist~. 2.19 "Preserve Conveyance Plan" means a plan that will. when adoDted. set forth policies and identify the schedule for ~ ~e ee transferFe6 of this land and/or fees to be paid to insure the orderly conveyance of the Otay Ranch land to the Preserve Owner Manager. The purpose of the plan is to fulfill the obligations to convey resource sensitive land, per the criteria contained in the phase I and II Resource Management Plans and to mitigate environ- mental impacts of the otay Ranch Project. 2.20 "Public Facility" public facilities described Implementation Plan. or "Public Facilities" means those in the otay Ranch Facility 2.21 "Subdivision Map Act" means the California Subdivision Map Act, Government Code section 66410, et seq., and its amendments as may from time to time be adopted. 2.22 "Substantial Compliance" means that the party charged with the performance of a covenant herein has sUfficiently followed the terms of this Agreement so as to carry out the intent of the parties in entering into this Agreement. -6- 2.23 "Threshold" means the facility thresholds set forth in the City's Municipal Code Section 19.19.040. 3. TERM. This Agreement shall become effective as a development agreement upon the effective date of the Annexation ("the Effective Date"); provided, however, that if the Annexation does not occur on or before January 1, 1997, this Agreement shall be null and void. Any of the foregoing to the contrary notwith- standing, from the date of first reading of the ordinance approving this Agreement, and unless or until this Agreement becomes null and void, Owner shall be bound by the terms of Paragraph 4. The Term of this Agreement for purposes other than Paragraph 4 shall begin upon the Effective Date, and shall continue for a period of twenty (20) years ("the Term"). The term shall also be extended for any period of time during which issuance of building permits to Developer is suspended for any reason other than the default of Developer, and for a period of time equal to the period of time during which any action by the city or court action limits the processing of future discretionary approvals, issuance of building permits or any other development of the property consistent with this Agreement. 4. OWNER CONSENT TO ANNEXATION. Owner hereby consents to and shall cooperate with the applications of City to declare that the Otay Valley Parcel is within city's sphere of influence and to annex the otay Valley Parcel to the City; provided, however, that Owner may withdraw such consent and withhold further cooperation if the City, prior to the Effective Date, adopts rules, regulations, ordinances, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments or fees applicable to and governing development of the Property which are inconsistent with, or render impractical development of the Property according to, the Development Plan or the additional commitments of City set forth in Paragraphs 5.1.1 through 5.1.8, below. OWner also aqrees not to challenqe the annexation of the otay Valley Parcel into the city. 5. VESTED RIGHTS. Notwi thstanding any future action or inaction of the city during the term of this Agreement, whether such action is by ordinance, resolution or policy of the city, Owner and Developer shall have a vested right, except as may be otherwise provided in this section 5, to construct the Project in accordance with: 5.1 Existing Project Approvals, subject to the following requests for modifications if aDDrOyed bv the city: 5.1.1 city shall reasonably consider in its discretion and with proper environmental review, a request to increase the residential density of Villages 2, 4, and 8, up to the number of residential units provided in village 3 by the County adopted GDP. -7- 5.1.2 City shall reasonably consider in its discretion and JjLeeeaa with proper environmental review a request to change the primary land use designation for Village 3 from Industrial to commercial, recreational, visitor- serving, and some residential uses in addition to the Indus- trial use. The exact acreages of the residential, industrial, commercial, or other uses, shall be agreed upon and set forth in a general plan amendment. 5.1.3 If the interchange improvements at otay Valley Road and I-80S are needed to serve the Project, the City will hold appropriate hearings to consider an amendment to amefts its Transportation Phasing Plan (TPP) and Development Impact Fee (DIF) Program to include said improvements as may be deemed appropriate bv the City to accommodate the project phasing. The city agrees to reasonably cooperate and work with CALTRANS to complete plans for said t.Re interchange improvement plafts. 5.1.4 city shall initiate contact and diligently pursue discussions with the county of San Diego and the City of San Diego to determine the number, scheduling and financing of the otay River road and bridge crossings. 5.1. 5 City shall allow the owner for purposes of processing entitlements to proceed with planning of the Property on a first come first served basis, with other properties in the area of the Annexation. In addition, if necessary the city shall, with proper environmental review, consider in its discretion an amendment to the Village Phasing Plan to facilitate the planning and development of the properties covered by this Agreement. 5.1.6 To the extent any of the foregoing eammit.meftt.s af Cit.y aLe emeasies ift changes are embodied in ~ the Development Plan or the rules, regulations, ordinances, policies, conditions, environmental regulations, phasing controls, exactions, entitlements, assessments, and fees applicable to and governing development of the Property, whether adopted before or after the Effective Date, such changes shall be deemed applicable to the Property without change to this Agreement. 5.1.7 city shall diligently process any amend- ments, applications, maps, or other development applications. 5.1. 8 City shall diligently process and reason- ably consider in its discretion with proper environmental review a request to expand the development areas of Villages 2, 3, 4 and 8 in the event future environmental studies indicate that areas once considered environmentally con- strained can be developed without significant, unmitigable environmental impacts. -8- 5.1.9. city may make such modifications or amendments to the Existina Pro;ect ADDrova1s/Future Discretionarv ADDrovals. as may be ordered bv a court of comDetent ;urisdiction in an action in which the Developer is a party or has had an opportunity to appear or has been provided notice of such action bv the city. 5.2 Development of Propertv. The development of the Property will be governed by this Agreement and Existing Project Approvals and such development shall comply and be governed by all rules, regulations, policies, resolutions, ordinances, and standards in effect as of the Effective Date subject to the provisions of section 5.2.1 below. The city shall retain its discretionary authority as to Future Discretionary Approvals, provided however, such Future Discretionary Approvals shall be regulated by the Existing Project Approvals, this Agreement, and City rules, regulations, standards, ordinances, resolutions and policies in effect on the Effective Date of this Agreement and subject to section 5.2.1. Notwithstanding the foregoing, the City may make such changes to the city's Growth Management Ordinance applicable to the Project as are reasonable and consistent with the purpose and intent of the existing Growth Management Ordinance and which are generally applicable to all private projects citywide or east of 1-805 or within a specific benefit, fee or reimbursement district created pursuant to the California Government Code. 5.2.1 New or Amended Rules. Reaulations. Policies. standards. Ordinances and Resolutions. The City may apply to the Project, including Future Discretionary Approv- als, new or amended rules, laws, regulations, policies, ordinances, resolutions and standards generally applicable to all private projects east of 1-805 or within a specific benefit fee or reimbursement district created pursuant to the California Government Code. The application of such new rules, or amended laws, regulations, resolutions, policies, ordinances and standards will not unreasonably prevent or delay development of the Property to the uses, densities or intensities of development specified herein or as authorized by the Existing Project Approvals. The City may also apply changes in city laws, regulations, ordinances, standards or policies specifically mandated by changes in state or federal law in compliance with section 13.3 herein. 5.2.2 Developer may elect with City's consent, to have applied to the project any rules, regulations, policies, ordinances or standards enacted after the date of this Agreement. Such an election has to be made in a manner consistent with section 5.2 of this Agreement.- 5.2.3 Modifications to Existinq Pro;ect Approvals. It is contemplated by the parties to this Agreement that the city and Developer may mutually seek and agree to modifications to the Existing Project Approvals. -9- Such modifications are contemplated as within the scope of this Agreement, and shall, upon written acceptance by all parties, constitute for all purposes an Existing Project Approval. The parties agree that any such modifications may not constitute an amendment to this Agreement nor require an amendment to the Agreement. 5.2.4 Future Discretionarv ADDrovals. It is contemplated by the parties to this Agreement that the city and Developer may agree to Future Discretionary Approvals. The parties agree that any such Future Approvals may not consti- tute an amendment to this Agreement nor require an amendment to the Agreement. 5.3 Dedication and Reservation of Land for Public PurDoses. Except as expressly required by this Agreement or the Existing Project Approvals and Future Discretionary Approvals (excepting dedications required within the boundaries of any parcel created by the subsequent subdivision of the Property as required by the Subdivision Map Act), no dedication or reservation of real property within or outside the Property shall be required by City or Developer in conjunction with the Project. Any dedications and reservations of land imposed shall be in accordance with section 7.2 and section 7.8 herein. 5.4 Time for Construction and ComDletion of Proiect. Because the California Supreme Court held in Pardee Construction ComDanv v. citv of Camarillo (1984) 27 Cal.3d 465, that the failure of the parties to provide for the timing of development resulted in a later-adopted initiative restricting the timing of development to prevail over such parties' Agreement, it is the intention of the parties to this Agreement to cure that deficiency by specifically acknowledging that timing and phasing of development is completely and exclusively governed by the Existing Project Approvals, including the Chula vista Growth Management Ordinance. The purpose of the Chula vista Growth Management Ordinance is to "control the timing and location of development by tying the pace of development to the provision of public facilities and improvements to conform to the city's threshold standards. " (Municipal Code Section 19.09.010A.7) The findings in support of the Growth Management Ordinance conclude that the ordinance "does not affect the number of houses which may be built." (Municipal Code Section 19.09.010B.3) Therefore, the parties acknowledge that the Chula vista Growth Management Ordinance completely occupies the topic of development timing and phasing and expressly precludes the adoption of housing caps, urban reserves or any other means by which the rate of development may be controlled or regulated. The City agrees that the Developer shall be entitled to, apply for and receive all permits necessary for the development of property, consistent with the Growth Management Ordinance, Existing Project Approvals, Future Discretionary Approvals and this Agreement. 5.5 Benefit of Vestinq. Nothing in this Agreement will be construed as limiting or impairing Developer's vested right, if any, to proceed with the development and use of the Property -10- pursuant to the Federal and state constitutions, and pursuant to statutory and decisional law. 5.6 vestinq of Entitlements. All rights conferred by this Agreement vest with the Effective Date hereof. The approval of Future Discretionary approvals shall not be deemed to limit Developer's rights authorized by this Agreement, and once such approvals are obtained they shall be vested to the same extent as the Existing Project Approvals. 6. DEVELOPMENT PROGRAM. 6.1 processinq of Future Discretionarv Approvals. city will accept and diligently process development applications and requests for Future Discretionary Approvals, or other entitlements with respect to the development and use of the Property, provided said applications and requests are in accordance with this Agreement. city costs for processing work related to the Project, including hiring of additional city personnel and/or the retaining of professional consultants, will be reimbursed to City by Developer. 6.2 Lenqth of Validitv of Tentative Subdivision Maps. Government Code section 66452.6 provides that tentative subdivision map(s) may remain valid for a length up to the term of a Develop- ment Agreement. The City agrees that tentative subdivision map(s) for the property shall be for a term of six (6) years and may be extended by the City council for a period of time not to exceed a total of twenty (20) years and in no event beyond the term of this Agreement. 6.3 Pre-Final Map Development. If Developer desires to do certain work on the Property after approval of a tentative map (for example, grading) prior to the recordation of a final map, it may do so by obtaining a grading and/or other required approvals from the city which are authorized by the city prior to recordation of a final map. Such permit shall be issued to Developer, or its contractor, upon Developer's application, approval, and provided Developer posts a bond or other reasonably adequate security required by City in an amount to assure the rehabilitation of the land if the applicable final map does not record. 6.4 Final Maps. 6.4.1 "A" Maps and "B" Maps. If Developer so elects, the City shall accept and process a master subdivision or parcel map ("A" Map) showing "super Block" lots and backbone street dedications. "super Block" lots shall be consistent with the GDP and subsequent sectional Plan Area plans, and shall not subdivide land into individual single- family lots. All "Super Blocks" created shall have access to dedicated public streets. The city shall not require improve- ment plans in order to record a final map for any "A" Map lots, but the city shall require bonding for the completion of backbone facilities prior to recording in an amount to be -11- determined by the City. Following the approval by city of any final map for an "A" Map lot and its recordation, Developer may convey the "Super Block" lot. The buyer of a "super Block" lot shall then process final improvement plans and grading plans and a final map ("B" Map) for each "Super Block" lot which the City shall process. The "B" Maps shall be in substantial conformance with the related approved "A" Map. In the instance of the multi-family dwelling unit areas, a separate tentative subdivision map may be submitted to the City and the "B" Map(s) for these areas may be submitted to the city after the city Planning commission approves said tentative subdivision map. 6.4.2 Recordation of Final Subdivision MaD in Name of Builder or Third Partv. Developer may, if it so elects, convey to a Builder or third party any "super block" lot(s) shown on the recorded Superblock Final Map. In such case, the Builder or third party will (i) process any neces- sary final improvement and grading plans and a final map for each such "super block" lot, which map city shall accept and process as subsequent phases in a multi-phase project, (ii) enter into a subdivision improvement agreement with city with respect to the subdivision improvements which are required for such super block lot, and (iii) provide security and insurance satisfactory to City for the completion of the subdivision improvements. 6.4.3 Recordation of Final Subdivision MaD in DeveloDer's Name: Transfer of Obliaations Under Subdivision Improvement Aqreementls) . If Developer so elects, it may defer the conveyance of any super block lot to a Builder or third party until after the final map of such super block lot has been recorded. If Developer elects to proceed in this manner, it will enter into City's standard subdivision improvement agreement(s) with City for the improvements required as a condition to the approval of such map(s). Upon sale to a Builder or third party, if such Builder or third party assumes Developer's obligations under the improvement agreement and provides its own security and insurance for the completion of the subdivision improvements as approved by the city, Developer shall be released from liability under the subdivision improvement agreement(s) and Developer's security shall be released. 6.4.4 Transfer of Riqhts and Obliqations of DeveloDment. Whenever Developer conveys a portion of the Property, the rights and obligations of this Agreement shall transfer in accordance with Section 15 herein. 7. DEVELOPER'S OBLIGATIONS. 7.1 Condition to Developer's Obliqations to Dedicate. Fund or Construct Public Facilities. Developer agrees to develop or provide the public improvements, facilities, dedications, or -12- reservations of land and satisfy other exactions conditioning the development of the Property which are set forth hereinbelow. The obligations of the Developer pursuant to this Agreement are conditioned upon: (i) the City not being in default of its obliga- tions under this agreement; and (ii) the city not preventing or unreasonably delaying the development of the property; and (iii) the Agreement having not been suspended in response to changes in state or federal law; and (iv) the City's obligations having not been suspended pursuant to section 13.2. 7.2 Dedications and Reservations of Land for Publicpurcoses. The policies by which property will be required to be reserved, dedicated or improved for public purposes are identified in the Existing Project Approvals. A more precise delineation of the property to be preserved, dedicated or improved for public purposes shall occur as part of Future Discretionary Approvals, consistent with the Existing Project Approvals. 7.2.1 Dedication of Land for SR 125. Developer agrees to dedicate land for right-of-way purposes and property owned by the Developer that is reaso"nably necessary for the SR-125 configuration that is generally depicted in the SR-125 draft Environmental Impact Report/Statement and as revised in the Final Environmental Impact Report/Statement to respond to engineering, design, environmental and similar constraints. The dedications shall be to the City or by an alternate method acceptable to the City at such time as requested by the city. city agrees that in the event City shall negotiate with California Transportation Ventures (CTV) or other toll road builder any participation or advantages to city that City shall share such rights with subsequent owner/resident of the property. 7.2.2 Landfill Nuisance Easements. The carties to this Aqreement understand and acknowledqe that the "Landfill Nuisance Easement" is an inteqral cart of this Aqreement. Develocer shall deliver to the city "Landfill Nuisance Easements" in the form attached as Exhibit "c" and satisfacto- ry to the County of San Dieqo Drior to the second readinq of the Ordinance aDDrovinq the Aqreement. If there is no second readinq of this Aqreement. the city shall return said ease- ments to the DeveloDer. If the County Board of SUDervisors does not acceDt or aDDrove said easements. this Aqreement shall be automaticallY terminated with neither Darty bearinq any liability hereunder. Deyeleper shall ~raH~ ~e ~ae Ce~H~Y lay .Jaly 1, 199~ IILaRelfill UaiaaRcc EaSemf:Rt.etl 6\iBataR'Eially iR t.he ferm a'tt.ae1=u:a as Euhiei t. c. The Eaae:meftt Bhall ee-;e:r all laJui ,_which is \:i t.hip! t.he Ot.ay Larulfill Buffer }6re:a af YillalJes 2, J aRe rlaRRiRIJ Area 19B af t.he: Ot.ay RaReR car as saevR eft Euhisit. I> heret.e. 7.2.3 city shall reasonablY consider in its discretion and with DrODer environmental review. a request to relocate all land uses which may be eliminated as a result of an -13- unknown relocation of SR-125 from the route currently del)icted in the GDP. PrEserve Celr./Cyartcc rlaR. The City aRB 'the De..;ele~eE' shall B\\:l'Etlally alJre:c 1:1.pSFt a Frcac.:r-:e OeR"';eyafiee Plan. The oity ahall iR ~eaa faith eeRsidcr fer aaaptisR 6~eh a plaFt aRa thE Develepcr shall eaR~ey prepcrty aRa/aE' fees iA lietl af laRa as oct fer~h ift sueh PlaR. 7.3 Growth Manaaement Ordinance. Developer shall commit the public facilities and city shall issue building permits as provided in this section. The city shall have the right to withhold the issuance of building permits any time after the City reasonably determines a Threshold has been exceeded, unless and until the Developer has mitigated the deficiency in accordance with the City's Growth Management Ordinance. Developer agrees that building permits may be withheld where the public facilities described in the Existing Project Approvals/- Future Discretionary Approvals required for a particular Threshold have not been committed. In the event a Threshold is not met and future building permit issuance may be withheld, the notice provisions and procedures contained in section 19.09. 100C of the Municipal Code will be followed. In the event the issuance of building permits is suspended pursuant to the provisions herein, such suspension shall not constitute a breach of the terms of this Agreement by Developer or Citv. Furthermore, any such suspension which is not caused by the actions or omissions of the Developer, shall toll the term of this Agreement as provided for in section 16.12 of this Agreement, and suspend the Developer's obligations pursuant to this Agreement. 7.3.1 Reauired Condemnation. The city and Developer recognize that certain of the public facilities identified in the Existing Project Approvals/Future Discretionary Approvals and required to comply with a threshold are located on properties which neither the Developer nor the City has, or will have, title to or control of. The City shall identify such property or properties and at the time of filing of the final map commence timely negotiations or, where the property is within the City's jurisdiction, commence timely proceedings pursuant to Title 7 (commencing with S 1230.010) of Part 3 of the Code of civil Procedure to acquire an interest in the property or properties. Developer's share of the cost involved in any such acquisition shall be based on its proportionate share of the public facility as defined in the Existing Project Approvals/Future Discretionary Approvals. Nothing in this Agreement shall be deemed to preclude the City from requiring the Developer to pay the cost of acquiring such off-site land. For that portion of the cost beyond the Developer's fair share responsibility, the City shall take all reasonable steps to establish a procedure whereby the develop- er is reimbursed for such costs beyond its fair share. 7.3.2 Information Reaardina Thresholds. Upon Developer's written requests of the City Manager, the City -14- will provide Developer with information regarding the current status of a Threshold. Developer shall be responsible for any staff costs incurred in providing said written response. 7.4 ImDrovements ReGuired bv a Subdivision MaD. Asmay be required pursuant to the terms of a subdivision map, it shall be the responsibility of Developer to construct the improvements required by a subdivision map. Where Developer is required to construct a public improvement which has been identified as the responsibility of another party or to provide public improvements of supplemental size, capacity, number or length benefiting property not within the subdivision, City shall process a reim- bursement agreement to the Developer in accordance with Article 6 of Chapter 4 of the Subdivision Map Act, commencing with Government Code section 66485, and Section 7.5, below. 7.5 Facilities which Are the ObliGations of Another Partv. or Are of Excessive Size. CaDacitv. LenGth or Number. Developer may offer to advance monies and/or construct public improvements which are the responsibility of another land owner, or outside the City's jurisdictional boundaries, or which are of supplemental size, capacity, number or length for the benefit of land not within the Property. City, where requesting such funding or construction of oversized public improvements, shall consider after a public hearing, contemporaneous with the imposition of the obligation, the formation of a reimbursement district, assessment district, facility benefit assessment, or reimbursement agreement or other reimbursement mechanism. 7.6 PioneerinG of Facilities. To the extent Developer itself constructs (Le., "pioneers") any public facilities or public improvements which are covered by a DIF Program, Developer shall be given a credit against DIFs otherwise payable, subject to the City's Director of Public Works reasonable determination that such costs are allowable under the applicable DIF Program. It is specifically intended that Developer be given DIF credit for the DIF Program improvements it makes. The fact that such improvements may be financed by an assessment district or other financing mechanism, shall not prevent DIF credit from being given to the extent that such costs are allowed under the applicable DIF Program 7.7 Insurance. insured for all insurance project as pertains to the the Project. Developer shall name city as additional policies obtained by Developer for the Developer's activities and operation on 7.8 Other Land Owners. Developer hereby agrees to dedicate adequate rights-of-way within the boun~aries of the Property for other land owners to "Pioneer" public facilities on the Property; provided, however, as follows: (i) dedications shall be restricted to those reasonably necessary for the construction of facilities identified in the City's adopted public facility plans; (ii) this provision shall not be binding on the successors-in- interest or assignees of Developer following recordation of the -15- final "Super Block" or "A" Map; and (iii) the city shall use its reasonable best efforts to obtain agreements similar to this subsection from other developers and to obtain equitable reimburse- ment for Developer for any excess dedications. 8. DEVELOPMENT IMPACT FEES. 8.1 Existina Development Impact Fee Proaram PaYments. Developer shall pay to the city a DIF, or construct improvements in lieu of payment, for improvements which are conditions of a tentative subdivision map upon the issuance of building permits(s), or at a later time as specified by City ordinance, the Subdivision Map Act, or Public Facility Financing Plan (PFFP). The DIF will be in the amount in effect at the time payment is made and may only be increased pursuant to section 8.6 herein. 8.2 Other Undeveloped Properties. The City will use its reasonable best efforts to impose and collect, or cause the imposition and collection of, the same DIF program on all the undeveloped real properties which benefit from the provision of the public facility through the DIF program, or provided as a condition of Project Approvals. 8.3 Use of Development Impact Fee Proaram. The DIF amounts paid to the City by Developer and others with respect to the Area of Benefit shall be placed by the city in a capital facility fund account established pursuant to California Government Code sections 66000-66009. The city shall expend such funds only for the Projects described in the adopted fee program as may be modified from time to time. The City will use its reasonable best efforts to cause such Projects to be completed as soon as practica- ble; however, the city shall not be obligated to use its general funds for such Projects. 8.4 withholdina of Permits. Developer agrees that City shall have the right to withhold issuance of the building permit for any structure or improvement on the Property unless and until the DIF is paid for such structure or improvement. 8.5 Development Impact Fee Credit. Upon the completion and acceptance by the city of any public facility, the city shall immediately credit Developer with the appropriate amount of cash credits ("EDUs") as determined by Developer and city. However, if the improvements are paid for through an Assessment District, the city shall credit the Developer with the appropriate number of Equivalent Dwelling unit Credits (EDU's). Developer shall be entitled to apply any and all credits accrued pursuant to this subsection toward the required payment of future DIF for any phase, stage or increment of development of the Project. 8.6 Modification of Development Impact Fees. The parties recognize that from time to time during the duration of the Agreement it will be necessary for the City to update and modify its DIF fees. Such reasonable modifications are contemplated by the city and the Developer and shall not constitute a modification -16- to the Agreement so long as: (i) the modification incorporates the reasonable costs of providing facilities identified in the Existing project Approvals; (ii) are based upon methodologies in substantial compliance with the methodology contained in the existing DIF programs; or other methodology approved by the city council following a public hearing; (iii) complies with the provisions of Government Code sections 66000-66009. 8.7 Standards for Financinq Obliqations of Owner. In connection with the development of the Property, the following standards regarding the financing of public improvements shall apply: 8.7.1 Owner shall pay its fair share for the interchanges descr ibed in Paragraph 5. 1. 3 , based upon the number of dwelling units or equivalent dwellings of develop- ment allowed on the Property as compared to the total dwelling units or equivalent dwelling units allowed on properties served by such interchanges. 8.7.2 Owner shall participate in the DIF Program for the Otay Valley Parcel with other owners in proportion to the total dwelling units or equivalent dwelling units allowed on the Property as compared with the total of such units allowed on properties in that particular DIF or by some other equitable methodology decided by the city Council. 8.7.3 The city shall diligently pursue the requirements that the Eastern Territories' DIF requires offsite third parties and adjacent jurisdictions to bear their fair share of all Otay River Valley crossings. 9. CITY OBLIGATIONS. 9.1 Urban Infrastructure. To the extent it is within the authority of the City to provide, city shall accommodate urban infrastructure to the project, consistent with Existing Project Approvals. Where it is necessary to utilize city property to provide urban infrastructure consistent with the Existing Project Approvals, the city agrees to make such land available for such uses, provided that the city if it so chooses is compensated at fair market value for the property. To the extent that the provision of urban infrastructure is within the authority of another public or quasi-public agency or utility, the city agrees to fully cooperate with such agency or agencies to accommodate the urban infrastructure, consistent with Existing Project Approvals. Urban infrastructure shall include, but not be limited to gas, electricity, telephone, cable and facilities identified in the otay Ranch Facility Implementation Plan. 9.2 Sewer capaci tv. The city agrees to provide adequate sewer capacity for the project, upon the payment of ordinary and necessary sewer connection, capacity and/or service fees. 10. ANNUAL REVIEW. -17- 10.1 citv and Owner ResDonsibilities. City will, at least every twelve (12) months during the Term of this Agreement, pursuant to California Government Code 565865.1, review the extent of good faith substantial compliance by Owner with the terms of this Agreement. Pursuant to California Government Code section 65865.1, as amended, Owner shall have the duty to demonstrate by substantial evidence its good faith compliance with the terms of this Agreement at the periodic review. Either City or Owner may address any requirement of the Agreement during the review. 10.2 Evidence. The parties recognize that this Agreement and the documents incorporated herein could be deemed to contain hundreds of requirements and that evidence of each and every requirement would be a wasteful exercise of the parties' resources. Accordingly, Developer shall be deemed to have satisfied its good faith compliance when it presents evidence of substantial com- pliance with the major provisions of this Agreement. Generalized evidence or statements shall be accepted in the absence of any evidence that such evidence is untrue. 10.3 Review Letter. If Owner is found to be in com- pliance with this Agreement after the annual review, city shall, within forty-five (45) days after Owner's written request, issue a review letter in recordable form to Owner ("Letter") stating that based upon information known or made known to the Council, the City Planning Commission and/or the City Planning Director, this Agreement remains in effect and Owner is not in default. Owner may record the Letter in the Official Records of the county of San Diego. 10.4 Failure of Periodic Review. City's failure to review at least annually Owner's compliance with the terms and conditions of this Agreement shall not constitute, or be asserted by city or Owner as, a breach of the Agreement. 11. DEFAULT. 11.1 Events of Default. A default under this Agreement shall be deemed to have occurred upon the happening of one or more of the following events or conditions: 11.1.1 A warranty, representation or statement made or furnished by Owner to city is false or proves to have been false in any material respect when it was made. 11.1.2 A finding and determination by City made following a periodic review under the procedure provided for in California Government Code section 65865.1 that upon the basis of substantial evidence Owner has not complied in good faith with one or more of the terms or conditions of this Agreement. consider submitted 11.1.3 City does not accept, requested development permits in accordance with the provisions timely review, or or entitlements of this Agreement. -18- 11. 1.4 Any other act or omiss ion by city or Owner which materially interferes with the terms of this Agreement. 11.2 Procedure UDOn Default. 11. 2 . 1 Upon the occurrence of default by the other party, City or Owner may terminate this Agreement after providing the other party thirty (30) days written notice specifying the nature of the alleged default and, when appropriate, the manner in which said default may be satis- factorily cured. After proper notice and expiration of said thirty (30) day cure period without cure, this Agreement may be terminated. In the event that city's or Owner's default is not subject to cure within the thirty (30) day period, City or Owner shall be deemed not to remain in default in the event that city or Owner commences to cure within such thirty (30) day period and diligently prosecutes such cure to completion. Failure or delay in giving notice of any default shall not constitute a waiver of any default, nor shall it change the time of default. Notwithstanding any other provision of this Agreement, City reserves the right to formulate and propose to Owner options for curing any defaults under this Agreement for which a cure is not specified in this Agreement. 11. 2 . 2 ci ty does not waive any claim of defect in performance by Owner if, on periodic review, City does not propose to modify or terminate this Agreement. 11.2.3 Subject to Paragraph 16.12 of this Agreement, the failure of a third person shall not excuse a party's nonperformance under this agreement. 11. 2.4 All other remedies at law or in equity which are consistent with the provisions of this Agreement are available to city and Owner to pursue in the event there is a breach Drovided however. neither Dartv shall have the remedY ot monetary damaaes aaainst the other. exceDt for an award of litiaation costs and attorney's fees. 12. ENCUMBRANCES AND RELEASES ON PROPERTY. 12.1 Discretion to Encumber. This Agreement shall not prevent or limit Owner in any manner at Owner's sole discretion, from encumbering the Property, or any portion of the Property, or any improvement on the Property, by any mortgage, deed of trust, or other security device securing financing with respect to the Property or its improvement. 12.2 Mortaaaee Riahts and Obliaations. The mortgagee of a mortgage or beneficiary of a deed of trust encumbering the Property, or any part thereof, and their successors and assigns shall, upon written request to city, be entitled to receive from city written notification of any default by Owner of the performance of Owner's obligations under the Agreement which has -19- not been cured within thirty (30) days following the date of default. 12.3 Releases. City agrees that upon written request of Owner and payment of all fees and performance of the require- ments and conditions required of Owner by this Agreement with respect to the Property, or any portion thereof, city may execute and deliver to Owner appropriate release(s) of further obligations imposed by this Agreement in form and substance acceptable to the San Diego County Recorder and title insurance company, if any, or as may otherwise be necessary to effect the release. City Manager shall not unreasonably withhold approval of such release(s). 12.4 Obliqation to ModifY. city acknowledges that the lenders providing financing for the Project may require certain modifications to this Agreement and city agrees, upon request from time to time, to meet with Owner and/or representatives of such lenders to negotiate in good faith any such requirement for modification. city will not unreasonably withhold its consent to any such requested modification. 13. MODIFICATION OR SUSPENSION. 13.1 Modification to Aqreement bY Mutual Consent. This Agreement may be modified, from time to time, by the mutual consent of the parties only in the same manner as its adoption by an ordinance as set forth in California Government Code sections 65867, 65867.5 and 65868. The term, "this Agreement" as used in this Agreement, will include any such modification properly approved and executed. 13.2 Unforeseen Health or Safety Circumstances. If, as a result of facts, events, or circumstances presently unknown, unforeseeable, and which could not have been known to the parties prior to the commencement of this Agreement, city finds that failure to suspend this Agreement would place the residents of City in a severe and immediate emergency to their health or safety. 13.2.1 Notification of Unforeseen Circumstances. Notify Developer of (i) City's determination; and (ii) the reasons for City's determination, and all facts upon which such reasons are based; 13.2.2 Notice of Hearinq. Notify Developer in writing at least fourteen (14) days prior to the date, of the date, time and place of the hearing and forward to Developer a minimum of ten (10) days prior to the hearings described in section 13.2.3, all documents related to such determination and reasons therefor; and 13.2.3 Hearinq. Hold a hearing on the deter- mination, at which hearing Developer will have the right to address the city Council. At the conclusion of said hearing, city may take action to suspend this Agreement as provided -20- herein. The City may suspend this Agreement if, at the conclusion of said hearing, based upon the evidence presented by the parties, the City finds failure to suspend would place the residents of the city in a severe and immediate emergency to their health or safety. 13.3 Chanae in state or Federal Law or Reaulations. If any state or federal law or regulation enacted during the Term of this Agreement, or the action or inaction of any other affected governmental jurisdiction, precludes compliance with one or more provisions of this Agreement, or requires changes in plans, maps, or permits approved by City, the parties will act pursuant to sections 13.3.1 and 13.3.2, below. 13.3.1 Notice: Meetina. The party first becoming aware of such enactment or action or inaction will provide the other party(ies) with written notice of such state or federal law or regulation and provide a copy of such law or regulation and a statement regarding its conflict with the provisions of this Agreement. The parties will promptly meet and confer in a good faith and reasonable attempt to modify or suspend this Agreement to comply with such federal or state law or regula- tion. 13.3.2 Hearina. If an agreed upon modification or suspension would not require an amendment to this Agree- ment, no hearing shall be held. otherwise, the matter of such federal or state law or regulation will be scheduled for hearing before the City. Fifteen (15) days' written notice of such hearing shall be provided to Developer, and the city, at such hearing, will determine and issue findings on the modification or suspension which is required by such federal or state law or regulation. Developer, at the hearing, shall have the right to offer testimony and other evidence. If the parties fail to agree after said hearing, the matter may be submitted to mediation pursuant to subsection 13.3.3, below. Any modification or suspension shall be taken by the affirma- tive vote of not less than a majority of the authorized voting members of the City. Any suspension or modification may be subject to judicial review in conformance with subsection 16.19 of this Agreement. 13.3.3 Mediation of Disputes. In the event the dispute between the parties with respect to the provisions of this paragraph has not been resolved to the satisfaction of both parties following the City hearing required by subsection 13.3.2, the matter shall be submitted to mediation prior to the filing of any legal action by any party. . The mediation will be conducted by the San Diego Mediation Center; if San Diego Mediation Center is unable to conduct the mediation, the parties shall submit the dispute for mediation to the Judicial Arbitration and Mediation service or similar organization and make a good faith effort to resolve the dispute. The cost of -21- any such mediation shall be divided equally between the Developer and City. 13.4 Natural Communities Conservation Act (NCCP). The parties recognize that Developer and the City are individually negotiating agreements with the united states Fish and wildlife Service ("USF&W") and the California Department of Fish and Game pursuant to the ongoing regional effort to implement the Natural Communities Conservation Act ("NCCP"), locally proposed to be implemented through the Multi-Species Conservation Program ("MSCP"). The parties further recognize that implementation of the agreements may necessitate modification to the Existing Project Approvals. The parties agree to utilize their best efforts to implement these agreements, once executed, through the timely processing of modifications to the Existing Project Approvals as they relate to the Property. The Developer agrees to pay the reasonable City cost for processing work related to the modifica- tions. Once such modifications are obtained they shall be vested to the same extent as Existing Project Approvals. 14. DISTRICTS. PUBLIC FINANCING MECHANISMS. This Agreement and the Existing Project Approvals recognize that assessment districts, community facility districts, or other public financing mechanisms, may be necessary to finance the cost of public improvements borne by this Project. If Developer, pursuant to the Existing Project Approvals/Future Discretionary Approvals, is required to install improvements through the use of assessment districts, community facility districts, or other public financing mechanisms, the City shall initiate and conclude appropriate proceedings for the formation of such financing district or funding mechanism, under applicable laws or ordinances. Developer may request that the City utilize any other financing methods which may become available under City laws or ordinances. All costs associated with the consideration and formation of such financing districts or funding mechanisms shall be paid by Developer subject to reimbursement, as may be legally authorized out of the proceeds of any financing district or funding mechanism. 15. ASSIGNMENT AND DELEGATION. 15.1 Assianment. Owner shall have the right to transfer or assign its interest in the Property, in whole or in part, to any persons, partnership, joint venture, firm, or corpora- tion at any time during the Term of this Agreement without the consent of City. Owner also shall have the right to assign or transfer all or any portion of its interest or rights under this Agreement to third parties acquiring an interest or estate in the Property at any time during the Term of this Agreement without the consent of City. 15.2 Deleaation. In addition, Owner shall have the right to delegate or transfer its obligations under this Agreement to third parties acquiring an interest or estate in the Property after receiving the prior written consent of the -22- City Manager, which consent shall not be unreasonably with- held, delayed, or conditioned. Once the City Manager has consented to a transfer, delivery to and acceptance by the city Manager of an unqualified written assumption of Owner's obligations under this Agreement by such transferee shall relieve Owner of the obligations under this Agreement to the extent the obligations have been expressly assumed by the transferee. Such transferee shall not be entitled to amend this Agreement without the written consent of the entity that, as of the Effective Date, is Owner, which consent shall not be unreasonably withheld, delayed, or conditioned. The entity that is Owner as of the Effective Date, however, shall be entitled to amend this Agreement without the written consent of such transferee. 16. MISCELLANEOUS PROVISIONS. 16.1 Bindinq Effect of Aqreement. Except to the extent otherwise provided in this Agreement, the burdens of this Agreement bind, and the benefits of this Agreement inure, to City's and Owner's successors-in-interest and shall run with the land. 16.2 Relationshio of citv and Owner. The contractual relationship between city and Owner arising out of this Agreement is one of independent contractor and not agency. This Agreement does not create any third-party beneficiary rights. 16.3 Notices. All notices, demands, and correspondence required or permitted by this Agreement shall be in writing and delivered in person, or mailed by first-class or certified mail, postage prepaid, addressed as follows: If to City, to: If to Owner, to: City of Chula vista 276 Fourth Avenue Chula Vista, CA 91910 Attention: City Manager SNMB, LTD. 7811 La Mesa suite B-3 La Mesa, CA Attention: Boulevard 91941 Christopher Patek STEPHENSON, WORLEY, GARRATT SCHWARTZ, HEIDEL & PRAIRIE 101 West Broadway, suite 1300 San Diego, CA 92101 Attention: Donald R~ Worley, Esq. city or Owner may change its address by giving notice in writing to the other. Thereafter, notices, demands, and correspondence shall be addressed and transmitted to the new address. Notice shall be deemed given upon personal delivery, or, if mailed, two (2) business days following deposit in the united States mail. With a Copy to: -23- 16.4 Rules of Construction. In this Agreement, the use of the singular includes the plural; the masculine gender includes the feminine; "shall" is mandatory; "may" is permissive. 16.5 Entire Aareement. Waivers. and Recorded statement. This Agreement constitutes the entire understanding and agreement of city and Owner with respect to the matters set forth in this Agreement. This Agreement supersedes all negotiations or previous agreements between city and Owner respecting this Agreement. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of City and Owner. Upon the completion of performance of this Agreement, or its revocation or termination, a statement evidencing completion, revocation, or termination signed by the appropriate agents of City shall be recorded in the Official Records of San Diego County, California. 16.6 Pro;ect as a Private Undertakina. It is specifically understood by City and Owner that (i) the Project is a private development; (ii) city has no interest in or responsibilities for or duty to third parties concerning any improvements to the Property until City accepts the improvements pursuant to the provisions of the Agreement or in connection with subdivision map approvals; and (iii) Owner shall have the full power and exclusive control of the Property subject to the obligations of Owner set forth in this Agreement. 16.7 Incorporation of Recitals. The recitals set forth in Paragraph 1 of this Agreement are part of this Agreement. 16.8 captions. The captions of this Agreement are for convenience and reference only and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaning of any of the provisions of this Agreement. 16.9 Consent. Where the consent or approval of City or Owner is required or necessary under this Agreement, the consent or approval shall not be unreasonably withheld, delayed, or con- ditioned. 16.10 Covenant of Cooperation. cooperate and deal with each other in good other in the performance of the provisions city and Owner shall faith, and assist each of this Agreement. 16.11 Recordina. The City Clerk shall cause a copy of this Agreement to be recorded with the Office of the County Recorder of San Diego county, California, within ten (10) days following the Effective Date. 16.12 Delav. Extension of Time for Performance. In addition to any specific provision of this Agreement, performance by either city or Owner of its obligations hereunder shall be excused, and the Term of this Agreement and the Development Plan extended, during any period of delay caused at any time by reason of any event beyond the control of City or Owner which prevents or -24- delays and impacts city's or Owner's ability to perform obligations under this Agreement, including, but not limited to, acts of God, enactment of new conflicting federal or state laws or regulations (example: listing of a species as threatened or endangered), judicial actions such as the issuance of restraining orders and injunctions, riots, strikes, or damage to work in process by reason of fire, floods, earthquake, or other such casualties. If City or Owner seeks excuse from performance, it shall provide written notice of such delay to the other within thirty (30) days of the commencement of such delay. If the delay or default is beyond the control of City or Owner, and is excused, an extension of time for such cause will be granted in writing for the period of the enforced delay, or longer as may be mutually agreed upon. 16.13 Covenant of Good Faith and Fair Dealinas. No party shall do anything which shall have the effect of harming or injuring the right of the other parties to receive the benefits of this Agreement; each party shall refrain from doing anything which would render its performance under this Agreement impossible; and each party shall do everything which this Agreement contemplates that such party shall do in order to accomplish the objectives and purposes of this Agreement. 16.14 Operatina Memorandum. The parties acknowledge that the provisions of this Agreement require a close degree of cooperation between City and Developer, and that the refinements and further development of the Project may demonstrate that minor changes are appropriate with respect to the details of performance of the parties. The parties, therefore, retain a certain degree of flexibility with respect to those items covered in general under this Agreement. When and if the parties mutually find that minor changes or adjustments are necessary or appropriate, they may effectuate changes or adjustments through operating memoranda approved by the parties. For purposes of this section 16.14, the City Manager, or his designee, shall have the authority to approve the operating memoranda on behalf of city. No operating memoranda shall require notice or hearing or constitute an amendment to this Agreement. 16.15 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 16.16 Amendment or Cancellation of Aareement. This Agreement may be amended from time to time or canceled by the mutual consent of city and Owner only in the same manner as its adoption, by an ordinance as set forth in California Government Code section 65868, and shall be in a form suitable for recording in the Official Records of San Diego County, California. The term "Agreement" shall include any such amendment properly approved and executed. City and Owner acknowledge that the provisions of this Agreement require a close degree of cooperation between them, and that minor or insubstantial changes to the Project and the Development Plan may be required from time to time to accommodate design changes, engineering changes, and other refinements. -25- Accordingly, changes to the Project and the Development Plan that do not result in a change in use, an increase in density or intensity of use, cause new or increased environmental impacts, or violate any applicable health and safety regulations, may be considered minor or insubstantial by the city Manager and made without amending this Agreement. 16.17 EstoDDel certificate. within 30 calendar days following a written request by any of the parties, the other parties to this Agreement shall execute and deliver to the requesting party a statement certifying that (i) this Agreement is unmodified and in full force and effect, or if there have been modifications hereto, that this Agreement is in full force and effect as modified and stating the date and nature of such modifications; (ii) there are no known current uncured defaults under this Agreement, or specifying the dates and nature of any such default; and (iii) any other reasonable information requested. The failure to deliver such a statement within such time shall constitute a conclusive presumption against the party which fails to deliver such statement that this Agreement is in full force and effect without modification, except as may be represented by the requesting party, and that there are no uncured defaults in the performance of the requesting party, except as may be represented by the requesting party. 16.18 Severabilitv. If any material provision of this Agreement is held invalid, this Agreement will be automatically terminated with neither Dartv bearinq any liability hereunder. Notwithstandinq the foreqoinq. anle!)!) within 15 days after such provision is held inyalid, if the party holding rights under the invalidated provision affirms the balance of this Agreement in writing this Aqreement shall not be terminated. This provision will not affect the right of the parties to modify or suspend this Agreement by mutual consent pursuant to Paragraph 12.4. 16.19 Institution of Leqal Proceedinq. In addition to any other rights or remedies, any party may institute legal action to cure, correct, or remedy any default, to enforce any covenants or agreements herein, or to enjoin any threatened or attempted violation thereof; to recover damages for any default as allowed bv this Aqreement or to obtain any remedies consistent with the purpose of this Agreement. Such legal actions must be instituted in the Superior Court of the County of San Diego, State of California. 16.20 Attorneys' Fees and Costs. If any party commences litigation or other proceedings (including, without limitation, arbitration) for the interpretation, reformation, enforcement, or rescission of this Agreement, the prevailing party, as determined by the court, will be entitled to its reasonable attorneys' fees and costs. 16.21 Hold Harmless. Developer agrees to and shall hold City, its officers, agents, employees and representatives harmless from liability for damage or claims for damage for personal injury, including death, and claims for property damage which may arise from -26- the direct or indirect operations of Developer or those of its contractors, subcontractors, agents, employees or other persons acting on Developer's behalf which relate to the Project. Developer agrees to and shall defend City and its officers, agents, employees and representatives from actions for damage caused or alleged to have been caused by reason of Developer's activities in connection with the Project. Developer agrees to indemnify, hold harmless, pay all costs and provide a defense for city in any legal action filed in a court of competent jurisdiction by a third party challenging the validity of this Agreement. The provisions of this section 16.21 shall not apply to the extent such damage, liability or claim is caused by the intentional or negligent act or omission of City, its officers, agents, employees or representatives. -27- SIGNATURE PAGE TO PRE-ANNEXATION DEVELOPMENT AGREEMENT. Dated this ____ day of , 1996. "CITY" CITY OF CHULA VISTA By: SHIRLEY HORTON, MAYOR "OWNER" SNMB, LTD. By: CHRISTOPHER PATEK, General Partner I hereby approve the form and legality of the foregoing Pre- Annexation Development Agreement this day of , 1996. Ann Moore, Interim City Attorney City of Chula Vista By: -28- EXHIBIT A '. 1 OlY OF CHUIA VISTA PLANNING DEPARTMENT 6119196 SNMB, LTD. '=;] I I I IF I [ o ~ t\) '< ;;0 ~ () -. (') ~ =r'< ~S.m o()~ ~ ::r -. tc!:C" ~ -::;.. ::s t\) N' <m t\) -. ~cn -. ~ o t\) ::s Z o . ~ -N s: is" II> m ~ I I :'> I ~ c :'> (j I " .. r ~ J: I m ;:; c:nf c/)c/)o )>c-c )>)>;:0 G') ..J :z cc- "'n>'" "'~n> m :; s:~ ! a.~~ n> _0 n>~n ('")('") Z '" D>D>"'O D>n>o -C/)('") :> 0 '< jij'r nO 111)(3 ::'"'0 ::r ;::::;::r c 3 " <0 ::rill -::rl: '< I: J: ~Z )>-D> D> I:n>_ ,.. .. .., ~ 3n> :::3 [Diii" ... _"T\ n> a. n>a. On> n>..,D> 0 ~ ~ :: ~ ~~ ~n>< 0< 2 - n> 0-' I: -, '" a. ....111 ~ III .. n> - a.- '" a. D> D> D> ... ~ .., ~ '< ....~ EXHIBIT "e" . ........,. .....t_ 11,......-. IN, ~ PI_ ....... T., O..f .....,._... Offl_ - "'.... .,- 1~ _If,e 1IIIy. ... .,_. ca R101 ~ _ fw ", "'. UM:I UJmI'ILL Ift1ISUCB 2ASEKIN'r AND c::ovJ:NMTS KtJNNING 1rr:H 1'SJI: UNO , (herein5tter referre~ to .. "Grantor"), for v.luable conaieSeration, doe.' hereby GRAN'1' to the COt1N'1'Y 01 SAN DIEGO, a politic.l subdivision of the state of california (h~.inafter .ref.~. to _ ..ar.nt....) .. the owner of ~t real propeny locate~ in the county of San Diego, California knoYn a. the "OUY 1.an4fill" which i. 1IIor. particul.rly d..oriHd. in .Exhibit A" . h.reto (h.r.inafter ref.rred. to .. th. .1>oainant Ten_.nt") an~ its lauce_sor. in int.r_t to the noainant TenemQnt, an EASEKENT (hereinatt.r referred to .e "~ui.ance z.._ont") ovor all ~t r.al property locateci in t.ha county of San DiOl1o, Calitornia 4e.criba4 in "Exhibit a" h~eto (h~e1nafter ret~ecS to a. the "s.rvient ~eneaent"). Thi. lIuisance Ea....nt 18 for the US8 ancS ~enefit of Grantee an4 LbI succ:_sors in int.rest and invited CJUaat. in the conduct ot solid waste landtillinq operations on the Dominant Tenement, . tor the fr.e and unobstructed pa..aqe on, onto, in, throuqh, and aoro.s the .urface end airap.co above the IJUrfaoe of tho S.rvient '1'ene1llent or the following thinq. (bere:l.naft.r refe~4 to a. . "Nui.ance Xt....): dU.t, 'nois.: vibr.tions: eny and all abe1llic.1s or p.nicl.. au.pended (peraanently or taaporarily) in the air aneS wine! inclu4inq but not U..ited. to ..than. p., oeSor., twae., fuel particle., s..quJ.ls ancS other .cavenq~ blrcb and the _cremant droppinq. th~efro1ll' en4 the unob.tructe4 pas.a;e below the .1.1rf.oe of leachate and oth~ pollutanbll and for .ach, every and all effect. a. aay be caused. bi or re.ult ~r_ ~e o~at;ioll. of 8 landfill vbich ia now II. .xiatanoa or vb10b ..y be developed. in the f~un, to<Jeth.r with the oontlnuin9 right to cau.. or allow in all of4auch Servi.nt Ten_Qnt auch Nui.ance ItelU. .it beinq understood aDd 8,reed t1I.at araJ1tae, or it. woca..or. in intere.t, intend8 to develop. aalntain end expand the landfill on the ad.jaoent Dc1ll1nant "-'_ent in INch a ..nn~ that .aid landtll1 and. the .....ent vranted. herein will ~e used at all'tau in compliance with all appl1ea})l. Stat. and 'eeSeral law. and. the lawful O%'!!era of .tat. aM Federal aClanci.. nqulat~ enviroDlMnul tactor., 1:OXic and/or ba.ar4ou. va.te, ancI the open~ion of the lanclt1l1. Grant:or, for iteelf aneS it. .uce...ora aneS a..ign., 40.. hereby f\llly waive and relaue any dqht or C&Wle of action Which .1:hey or any of t.be. ..y now bave or ..y have in the future a9a1n.t Crantee, ita .\iO~aaor. aD4 a..1CjJn., on aooo\ll\t of or a1'1e11\9 o~ or .\iOh ~iaanoe %~ be1'et:otore and ".r_rt.r oa\Wed by ~. 0...rat:10~ oC a landtU.l. Grant:or, for i1;ealt aD4 it. auoce.aora and a.aign., COYWIanta ancs a'11='--, with the Gnde%'8tan4inq ancS in~.nt: 'that .u.cm ahall run vith the la.nc!, an4 whi= llball run with the land, that neither 1:hey nor any ot th_ will OO1IIIIance or aaintain a .\lit, action, writ, arbitration, or other l.gal or equ1table proceeding aqatnat Crante. or it. .uoce..or. or a..iCjJnIl vherein the relief ~ugbt U the O6Il..t10n or lWution on the ua. of the Dom1nant Wane..nt a. . landfill. Grantor, for it..lf and it. .uace..ora and ...ic;n., coYananta and agree., vith the un4ar.tand~ and 1n~t that _uch ahall run with the laneS, ancs Whioh lJhall run vith the land, that in the evant that they violate the above oovenanta of the for*901nq .antence, they lJhall pay to I:rante. . .u<:b attonl.Y.' f... and. oo.t. a. ..y be d.t.ra1necl to be rea.on&1l1a ~Y a Court ot CCIIIIp.tent juri.4i~ion. %nqulrle. or . r.qu..t. for anforcQ.nt aa4. by Grantor, it. .uooe..or. or aa.i~ t:o But. or l"e4enl agenele. with r.gulatory authority over the operation of landfill. .hall not ])a conaid.rali a .violation of thia paragrap!a. Upon the t.rainatlgn of _e of the Dominant Tan_ant tor lanclfill purpo..., (lnclY4inq ocapletion of a~lv. landfill operations and all oloaure and poet-cloaure a~lvltle.), orantor, ita .ueee..ora or a..1qna ..y nqu..t that Grantee, it. auoo...ora or a..lqna, through the appli~le 1.gal p~ooaclur., va_t. or terminat. thi. .....ent, vhich requ..t vill not ~. -unreaaonably w1theld. . . IIxacutacl thla .eau':rornla. day of , 1..', .t S.n D1ego, . . 4RAN'1'Oa . .. _...__ ....... ".1'<\ .~'TT C~~"/7JCO <( I CO.J f' ..J '" O G: IU . &> 01: o Z c I 5 Ii III to ~ tt (J)b~ ~ w U 0::: <( 0.... 0:::: W u.... u.... ::J CD o Z <( -' -' u.... o z ::5 >- <( ~ o J - S \ ., :I: U ZN <", D::aJ ~Cl. 1-< 0::; 9 . ~ "- - ..., ~ ..... I- - 0 ~ 'U -' 0 · UJ ~VI ~ 4,.... Q.- .!-6> ....", .9.... ~J' r. -- .... ,)J' r ... ~ .. ~ .. " '" I ". . EXHIBIT "En I Pre-annexation Development Agreement Planning Area Assessor Ownership Acreaae Parcel Numbers Otay Valley Parcel 644.()30.()7 S NMBLtd. 134.25 Otay Valley Parcel 644.060.()7 SNMBLtd. 159.18 Otay Valley Parcel 644.060'()8 SNMBLtd. 80.00 Otay Valley Parcel 644.060.()9 SNMBLtd. 80.00 Otay Valley Parcel 644.060-10 SNMBLtd. 289.70 Otay Valley Parcel 644.060-12 S NMBLtd. 82.20 Otay Valley Parcel 644.()70.()8 SNMBLtd. 313.28 Otay Valley Parcel 645'()30-19 SNMBLtd. 335.34 Otay Valley Parcel 646'() 10.()2 SNMBLtd. 352.70 1,826.65 Total Item No. 13 Council Meeting of 8/20/96 ERRATA SHEET Public Hearing - Otay Ranch Pre-Annexation Development Agreements with SNMB, LTD., JEWELS OF CHARITY AND STEPHEN AND MARY BIRCH FOUNDATION The applicants and the staff are in agreement and recommend the following changes to the three Development Agreements: 11. 2.4. Remedies Upon Default. In the event of a default by either party to this Agreement, the parties shall have the remedies of specific performance, mandamus, injunction and other equitable remedies without having to first prove there is an inadequate remedy at law. Neither party shall have the remedy of monetary damages against the other; provided, however, that the award of costs of litigation and attorneys' fees shall not constitute damage. 17. AUTHORITY Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. The following section should be added to the SNMB, LTD. Agreement only. 7.2.1 Dedication of Land for SR-l25. Developer agrees to dedicate land for right-of-way purposes and property owned by the Developer that is reasonably necessary for the SR-125 configuration selected by CALTRANS and depicted: (1) generally in the GDP or (2) that alignment identified as the Brown Field Modified Alignment which is generally depicted in the SR-125 draft Environmental Impact Report/statement and as revised in the Final Environmental Impact Report/statement to respond to engineering, design, environmental and similar constraints. Notwi thstanding the foregoing, should CALTRANS not select alignment (1) or (2) above, the Developer shall dedicate land for any such alternate SR-125 configuration only on the condition that the city agree to relocate any land uses displaced by such alternate Freeway alignment. City agrees that in the event City shall negotiate with California Transportation Ventures (CTV) or other toll road builder any participation or advantages to city that city shall share such rights with subsequent owner/resident of the property. COUNCIL AGENDA STATEMENT Item City council Meeting Date No. /~ 8/20T96 ITEM TITLE: ordinance~~'~ Adopting Otay Ranch Pre-Annexation Development Agreement Between the city of Chula vista and Baldwin Builders SUBMITTED BY: Deputy City Manager Planning Director Otay Ranch PrQjept Manager , ' I ,'1 V" I,~ REVIEWED BY: City Manager cY '~\ ~ 4/5 Vote: Yes No---1L Y" The purpose of this item is to present a development agreement between the City of Chula vista and the Baldwin Company. On June 25, 1996, the Planning Commission and City Council considered a series of development agreements with Village Properties, united Enterprises, Greg smith and the Foundation. (The Foundation agreement was subsequently split into three separate agreements in August.) The remaining party who is a property owner of a portion of the otay Ranch property is the Baldwin company, which is the trustee for the bankruptcy. This draft agreement represents the final agreement necessary to satisfy the city and property owner's intent in that regard. RECOMMENDATION: That the City Council place the Ordinance on First Reading. BOARD/COMMISSION RECOMMENDATION The Planning commission recommended approval of the Agreement, 5-0, on August 14, 1996. BACKGROUND On February 5, 1996 and July 1, 1996, the Local Agency Formation Commission (LAFCO) approved the inclusion of Planning Area 1, "the Otay Parcel", into the city Sphere of Influence. Also, on July 1, 1996, LAFCO approved the annexation of Sphere of Influence Planning Area 1, "the otay Parcel", Planning Area 2, "the Inverted L", and the Mary Patrick Estate Parcel. In addition to the LAFCO process and negotiations with property owners, the city has also been working cooperatively with the County of San Diego. On May 15, 1996, a Property Tax Sharing Agreement and an Agreement Regarding Jurisdiction Over and Operation of the Otay Landfill were entered into between the city and County. An agreement to continue to provide fire service to the otay Landfill once it is detached has also been negotiated. county approval occurred on July 30, 1996 and City council approval on August 6, 1996. CEQA review is not required for the development agreement since an /1/, I City Council Meeting Date 8/20/96 Page 2 in-depth review occurred when the environmental review approved for the Otay Ranch General Development Plan adopted by the City on October 28, 1993. (Lonq Beach Sav. and Loan v. Lonq Beach Federal, 232 Cal. Rptr. 772, 781-2 (1986). DISCUSSION The following discussion focuses on the benefits of the Agreement to the parties and a description of the terms of the Agreement which are constant for all the parties. The benefits to the parties and the basic dea~ points have not changed and are the same as in the prior agreements presented to the commission and Council on June 25,1996 and on August 6,1996 (i.e., #1 and #2 below). 1. Benefits to the Parties a. Benefits to the citv . developer support for annexation of the Otay Parcel to Chula vista. . provision of property for the Chula vista Greenbelt open space areas and MSCP compliance. . assurance of adequate public facilities when needed, and in some cases development of excess capacity or facilities sooner than required. . compliance with the city's Growth Management Program. b. Benefits to the Developer . vests permitted land uses, density, intensity of use per the approved General Development Plan and timing and phasing of development per Future Discretionary Approvals (i.e., SPA Plan and Public Facility Finance Plan) and in compliance with the City's Growth Management Ordinance. . grants the owner certainty to proceed with the development of the property in general accordance with today's ordinances, rules, regulations and standards or as they may be changed in the future citywide or east of 1-805. Special benefit, fee districts are also contemplated. . allows for fee credits and/or reimbursement mechanisms for extraordinary facility improvements or pioneering thereof and specifies that DIF fees will be used to facilitate regional backbone 19' :J.. city council Meeting Date 8/20/96 Page 3 facilities. . allows the Developer to receive timely processing on an equal basis with other Developers of Future Discretionary Approvals and allows those approvals to be covered by these Agreements. 2. Description of the Aqreement Terms The Agreement contains the following major points: (1) The owners consent to the annexation and the annexation of the Otay Parcel is to be accomplished by January 1, 1997. (Final action by the conducting authority, the City Council, is scheduled for September 10, 1996.) (2) The term of the Agreement is 20 years. (3) Application of new or ordinances, Resolutions, amended Rules, Regulations, Standards and Policies. The Agreement permits changes in rules, policies, etc. as long as they are applied citywide or east of I-80S and do not unreasonably prevent or delay the development of the Property to the approved uses, densities or intensity of use. Changes necessitated by changes in State or Federal law are also covered. (4) Modification contemplated Agreement. contemplated Agreement. to Existing Project Approvals are and do not constitute an amendment to the Future Discretionary Approvals are also and do not constitute an amendment to the (5) The dedication and reservation of land is to be consistent with the Existing Project Approvals. (6) The timing for project construction is to only be regulated by the Growth Management Ordinance and threshold standards which include the adequate provision of all public facilities needed to serve the Project as well as project phases through subsequent SPA and Public Facility Finance Plan Approvals. The Project is subject to amendments to the Growth Management Ordinance subject to certain conditions. Changes to the Growth Management Ordinance and Threshold Standards are to be consistent with the purpose and intent of the existing Growth Management Ordinance and generally applicable citywide or east of I-80S or applicable to a benefit, fee district as described in earlier sections. I'I~ J City Council Meeting Date 8/20/96 Page 4 (7) Application of Fees and Special and allowed so long as they are east of 1-805 or relate to some assessment district formed in Government Code. Taxes are contemplated applicable citywide or special fee or benefit accordance with the (8) The city will accept and diligently process development applications with the Developer paying for the staff and consultant costs therewith. (9) Length of validity of Tentative Maps. The tentative map(s) are vested for 6 years and may be extended by the Council for a term not to exceed that of the Agreement. (10) Recognizes that the Developer can do certain work such as grading at the pre-final map stage subject to City approval and posting of required performance bonds. Acknowledges the ability to record Superblock Final Maps ("A" Maps) for financing purposes as well as the standard Final Maps ("B" Maps). Allows for maps to be recorded in the name of builders or third parties and certain transfer of obligations to occur with city approval. (11) The Developer is obligated to dedicate or reserve land and fund/construct public facilities as required by the General Development Plan and subsequent approvals (12) The Developer is to comply with the Otay Ranch Reserve Fund Program as adopted as part of the Existing Project Approvals. (13) The City has the right to withhold the issuance of building permits if a threshold has been violated until the deficiency has been cured per the Growth Management Ordinance. Permits may also be withheld where public facilities required for thresholds have not been committed. The suspension of the project due to building permits being withheld is not a breach of the Agreement. Unless the Developer is responsible for the threshold violation, the Agreement is tolled while permit issuance has been stopped. (14) If the Developer constructs a facility which is the obligation of another Developer or builds a facility of supplemental size, the City will consider a reimbursement district. similarly, the Developer will dedicate land for others to pioneer projects on the Property. (15) The Developer agrees to pay DIF fees. The City agrees to establish and use the DIF fees in an appropriate fashion. The DIF can be modified if it incorporates reasonable 1'1.,'/ City Council Meeting Date 8/20/96 Page 5 cost estimates to provide facilities based on specified methodology and justification. The city can withhold permits until the DIF is paid. The Developer can get DIF credits when facilities are completed. The city will undertake reasonable efforts to collect and impose the DIF on others and spread the costs on an equitable basis. The Property Owner will pay its fair share of the DIF for Otay River Road crossings and the City will pursue other parties, such as the County and City of San Diego, to pay their fair share as well. (16) The City will cooperate in the provision of utilities to the Project. (17) The Agreement contains provisions for default, encumbrances and releases modification or suspension, assignment delay and amendments. annual review, on property, and delegation, (18) A provision has been included that in the event of a dispute between the parties that a mediation process be followed. If any party commences litigation, the prevailing party as determined by the court, will be entitled to attorney's fees. (19) The parties recognize that the Developer and the City are negotiating agreements with the U.S. Fish and wildlife and California Fish and Game to implement the IINCCPII and the "MSCP" multi-species habitat programs. Modifications to the Existing Project Approvals will be required to be processed by the City, paid for by the Developer, and would not constitute an amendment to the Agreement. 3. Aqreement Terms Relatinq to Specific Parties The specific changes unique to the Baldwin Agreement are outlined below. section 5.1.1 and 5.1.2 pertain to the Baldwin Agreement. The first request indicates that the city will be willing to consider modifications to the land use designations of the General Plan for the Property subject to proper environmental review and in the City's discretion. The second provision is that the city will provide legal notice to the Owner of any actions involving assessment district formation, development impact fees or other discretionary actions affecting the Property. In addition, the City will notify the applicant and use reasonable efforts to involve them early in any pending discretionary actions for the Property. /'1.5" City Council Meeting Date 8/20/96 Page 6 section 5.3 has a sentence added that acknowledges that Baldwin will not be required to dedicate land for the sole purpose of satisfying an obligation of Otay Ranch L.P., Tiger Development Two, Tigerheart, Inc. and Village Development or their successor interests. By way of background, as a part of Village Development's SPA One approval, an Open Space Conveyance Plan was adopted. This Plan, together with the entitlements given, requires that the property owners of SPA One to convey off-site land or pay fees in-lieu of land to the Preserve Owner Manager. Village Development no longer controls the land that was designated as part of the Conveyance Plan. Baldwin Builders has requested that the provision in section 5.3 be added to protect them from the burden of conveying open space land for Village Development entitlements. section 7.5 has a sentence added clarifying how DIF credits are given to the property owners in the cases of assessment districts. section 11. 2.4 contains language stating that neither party is eligible to receive monetary damages if there is a breach of the agreement. Staff and the applicant are in agreement on all of the above changes. Fiscal Impact It isn't possible to quantify the value of the Agreement to the ci ty or the other parties. Through annexation and the related property tax, sales tax, etc., the city will realize significant benefits. Likewise, the Developers benefit from the vesting and certainty provided by the Agreement to be able to get loans and sell and develop the Property in accordance with current and future approvals. IY"j. z:: ~ ORDINANCE NO. .2/, 9() AN ORDINANCE OF THE CITY OF CHULA VISTA ADOPTING OTAY RANCH PRE-ANNEXATION DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND BALDWIN BUILDERS WHEREAS, a City of Chula vista application to have the Otay Valley Parcel included within City's sphere of influence was approved on July 1, 1996 by the Local Agency Formation Commission; an.d WHEREAS, the development of the Otay Valley Parcel will require substantial public improvements phased over a period of time; and WHEREAS, California Government Code ~65867. 5 et seq. provides authority for cities to enter into development agreements; and WHEREAS, CEQA review is not required for the development agreement since an in-depth review occurred when the environmental review was approved for the Otay Ranch General Development Plan and adopted by the City on October 28, 1993. (Lonq Beach Sav. & Loan v. Lonq Beach Redevel., 232 Cal.Rptr. 772, 881-2 [1986]); and WHEREAS, the Planning Commission held a public hearing on August 14, 1996 to consider the Pre-Annexation Development Agreement and the City Council held a public hearing on August 20, 1996 to consider the Pre-Annexation Development Agreement; and WHEREAS, City Council has found that this Pre-Annexation Development Agreement is consistent with the City's General Plan and all applicable mandatory and optional elements thereof as well as other applicable pOlicies and regulations of the City; and WHEREAS, the Planning Commission and City Council have reviewed the Pre-Annexation Development Agreement and recommend its approval. NOW, THEREFORE, Vista ordains as follows: the city Council of the City of Chula SECTION I: Pre-Annexation Development Agreement for a portion of the Otay Valley Parcel. In accordance with section 65867.5 of the Government Code, the city council of the City of Chula Vista has approved that certain document entitled "Pre-Annexation Development Agreement" for a portion of the Otay Valley I )~/I"'/ Parcel with Baldwin Builders, on file in the office of the City Clerk as Document No. SECTION II: 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. SECTION III: This ordinance shall take effect and be in full force on the effective date of annexation as set forth in the Pre-Annexation Development Agreement. Presented by Approved as to form by ~~~ Ann Y. Moore, Acting City Attorney George Krempl, Deputy city Manager c: \ or\ baldwin. or 2 1'I~,.2. I Civic Center Drive San Marcos. CA 92069-2949 Telephone (619) 744-1050 FAX: (619) 744-7543 August 16, 1996 Honorable Mayor and City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 RE: Public Hearing - Adoption of Otay Ranch Preannexation Development Agreement with Baldwin Builders Dear Mayor and Council members: As part of your decision making process regarding entering into the Otay Ranch Preannexation Development Agreement with Baldwin Builders, the City of San Marcos thought it best that you hear about our dealings with the Baldwin Company. In 1987 the Baldwin Company approached the City of San Marcos with its plans to develop a 1,561 unit master planned community called Paloma. In an effort to minimize their burden regarding the financing of the necessary infrastructure needed to support their project, they aggressively pursued the use of the Mello-Roos Community Facilities Act of 1982. The result was a project that currently has Mello-Roos special taxes that range from $2,125 to $3,623 per lot for Fiscal Year 1996-97. The impact of these high maximum special tax amounts can be seen in the project's anemic absorption rate and the significant drop in resale price of homes throughout the Paloma development. To further complicate matters, in July of 1995, the Baldwin Company filed for Chapter 11 bankruptcy protection. The Baldwin Company and its subsidiaries are delinquent by $166,000 and $1,046,000 in their Fiscal Year 1994-95 and 1995-96 Mello-Roos special taxes. Although the delinquencies have not had a direct financial impact on the existing homeowners, the bankruptcy has prevented Baldwin from continuing to develop their project which would provide some relief to the existing homeowners by expanding the assessment base. The residents of Paloma have been forced to look at partially framed homes as a memorial to Baldwin's financial woes. These incomplete structures may be regarded as a public nuisance subject to abatement. IC ar . ocurn, ice- ayor etty vans arre . entry la Jms- ert Page 2 Mayor and City Council City of Chula Vista August 16, 1996 Unless Baldwin's financial condition improves and/or they sell off the remaining portion of their project, the Mello-Roos bonds may be in default by Fiscal Year 1999-2000. In addition, the City, in an attempt to address the Paloma residents' concerns, had recently moved forward in a process to restructure CFD 88-1. However, the City received the attached letter from Baldwin's Trustee threatening litigation and implying that they would exercise their "veto" of the process if the Council did not comply with their wishes. The letter from Lobel & Opera is not a positive sign of their willingness to cooperate in a process that is absolutely critical if we are to address the residents', the bondholders' and even Baldwin's issues and get this project back on track. The resulting political backlash from the Paloma residents due to Baldwin's bankruptcy and the high Mello-Roos special taxes can be seen and heard at almost every San Marcos City Council meeting. The City of San Marcos respectfully suggests that you carefully consider the shortfalls that may arise from your adoption of the Preannexation Development Agreement with Baldwin Builders. Sincerely, ~fI~~ F. H. "Corky~~ftI'i, Mayor on behalf of-1Vlayor and City Council cc: City Council City Manager City Attorney RUG 8 '96 12:82 FROM LOBEL RND OPERA PRGE.802 LOBEL tic OPERA PROFESSIONAL CORPOR.ATION ID.....O P. CIIIUSTrAN ;\.L"1'I J. ,....ZDMAN 'AWILA ZYLSTAA It..aOIJL )111(1'(1" G. aUdit. wtt.Lt..uc H. LaBlt 1.01laT E. or!.~A JAY (;). SAND1Jl!l Cru.1TL A. JEICIN' TAVt C. STANLEY S1.:IT1: 110a 'UO, )bCA&TKt:1. IOt:LZVAItU PO !IT OFFICE .OX ",.. Jl,VTSt. CALII'Oa.NIA H11.' August 8.1996 0' COUNSEL: aOBtJlT (. ."O'~A T!1.tPHONF. ('HJ .".:'Ieo 'AX p'141 .".,.... 9''kIT!:Il'S DtllECT DIAl. NUMltJll: (714) H,.14C. VIA TELECOPTF.R (619) 744-7543 Tbe Honorable Mayor of 53.11 Marcos City Council Members of San Marcos I Civic Center Drive San Marco 93069 Dear Honorable Mayor 3.I1d City Council Members Lobel & Opera, professional corporation. as special counsel tor David Gould, the Chapter 11 trustee (the "Trustee"), for Bald....i.n Buildcrs, a C.alifomia Corporation and Baldv.in Building Contractors, a California limited partnership (collectively referred to herein as "Baldwin"),has becn directed. by the Trustee to undertakc whatever legal action is necessary to halt the rollback or reapportio=ent of the Fiscal Year 1996-1997 Special Tax levy (tbe "Mello-Roos t:1.'C) to the financial detriment of Bald....m b~. the City of San Marcos (thc "City") in violation of~!i 53331. 53332,53334,53335.53337, and 53338 ofthc California Government Code. Tbe purpose of this correspondcnce is to place the City on notice that if any action is taken at the meeting oftbe City council on August 8, 1996 which would result in the submission of a tax assessment reapportioning the Mello-Roos ca." in ref=ce to San Marcos Community FacUities District No. 88-1 Special Tax Bonds. Serics 1988, the Trustee ....ill immediately file an action to perm:l11ently enjoin the City. Further, Lobel & Opera intends to request a hearing seeking a tempor:J.rj' rcstr:lining order to prohibit the City's action and to schedule such hearing on August 9, 1996. P1Jrsuant to the California Government Code sections cited above. notice is hcreby given that the City is prohibited from reapportioning Mcllo-Roos obligations ....ithout (1) the adoption of a resolution of consideration; (2) containing proper notice of the reapportionment sought; (3) which is thc subject of a hearing not less than 30 or more than 60 days afu:r adoption of the resolution; and, (4) is approved in an election by a tv..o thirds majority ofthc registered voters subject to the assessment prior to thc adoption of the resolution of change by the City. The City failed to adopt a resolution of consider:>tion in compliance ....ith California Govcmmcnt Code ~ 53332. As the resolution of consideration was never properly before the City, thc City failed to mcct thc notice and hearing requirement ofCalifom.ia Gov.emment Code!i 53334. Further. the City has attcmpted to adopt a resolution of changc ....ithout submission of a proper resolution of consideration to thc registered voters. c..............,; AUG 8 '96 12:03 FROM LOBEL AND OPERA PAGE.003 August 8, 1996 Page 2 Notwithstanding the failure by the City to properly notice and hold a he:1ring pursuant to Government Code 953334. this leller constitutes ",Tinen protest by Bald....1n. PU!'SU3llt to Cllifomia Government Code 9 53337. as the O"'11er of more th;JIlSO"/o of the land ",ithin the territory of the Di5t!ict against the proposed alteration or reapportionment of the existing special tax within the District. The City is in receipt of the ....Tinen opinion of its bond counsel, Mr. Warren Diven. that it can not proceed to rollback or re:lpportion the Mello-Roes Ta.'( unilaterally. Mr. Diven has clearly informed the City th:lt it must follow the statutory procedures outlined above including procurement of:l two-thirds majority for the reapportionment or rollback in a registered voter elc::ction. In light of the clear mandate of the statutory authority which sets forth the proper procedures for reapportionment and the 'Iirinen opinion of the City's independently retained special bond counsel, it is evident that the City can not unilaterally rollback or reapportion the' Mello-Roos Ta.'I:. Further. the refusal b)' the City to cease and desist in it attempt to unilaterally reapportion the Mello-Roos obligation in violation of the Gov=cnt Code will result in irreparable h:um to Baldwin. In light of these facts, it is respectfully requested that the City consider both the legal deficiencies inherent in its present course of action and the ramifications of litigation which may negatively impact its ability to collect the previously properly' assessed Mello-Roos tax from the p:Jrties properly assessed under the 1989 resolution. If you wish to discuss this matter in greater detail. please contact the undersigned at your earliest convenience. It is in the interests of all parties to reach a resolution of these issues and avoid the expense of litigation as well as the potential loss of the ta."{ receipts due to improper assessment. CAS/cas cc: David E. Gould. Esq. LOBEL & OPERA PROFESSIONAL CORPORATION Village DEVELOPMENT Quality master planned communities since 1974 August 20, 1996 Via Telefax Honorable Mayor Shirley Horton Chula Vista City Council Members CITY OF CHULA VISTA 276 4th Avenue Chula Vista, California 91910 Re: SPA One Tentative Map Agenda Items Dear Mayor Horton and Members of the Council: Village Development requests the Council to continue agenda items 15 A-D until the next Council session. I regret making this request, in light of the efforts of City staff and the Planning Commission to promptly review the revised tentative map. However, the added time should afford an opportunity to resolve the few remaining tentative map issues. Sincerely, VILLAGE DEVELOPMENT KJK\mdm cc: John Goss, Chula Vista City Manager Bob Lieter, Planning Director Jerry Jamriska, City ofChula Vista Special Projects Manager Ann Moore, City of Chula Vista Acting City Attorney NlichaelVVoodward, VVCLF Bill Brasher, Baldwin Builders c:\mora\kim\1etters\horton 1197S El Camino Real, Suitt:' 10+. San Diego, CA 92130 Tel. 619-2 SQ~2934-. Fax. 619-259-+364 BALDWIN'S LEGACY WIDE OPEN SPA C E S AND A BIT OF THE OLD WEST i THE VILLAS NEIGHBORHOOD PARK COMPLETION SCHEDULED 3/94 r{' r ~ I O~f yt~t IN 1\\t:3 CDN DT1/0N . m__ ._THE STICKS ~_.__._~- . ... ....- ~. ~ ~~...,-.,--, '''-'''''''' ~'.~......- COUNCIL AGENDA STATEMENT Item~ Meeting Date 8120/96 ITEM TITLE: A) Resolution 18416 - Approving the Resource Conveyance Plan for the Otay Ranch SPA One B) Resolution 18417 - Approving the Resource Indemnification Agreement C) PCS-96-04 - Consideration of Tentative Subdivision Map for the Otay Ranch SPA One, Chula Vista Tract 96-04, Generally Located South of Telegraph Canyon Road Between Paseo Ranchero and the Future SR-125 Alignment D) Resolution 18398 - Approving a Revised Tentative Subdivision Map for Portions of Otay Ranch SPA One, Chula Vista Tract 96-04, and Making the Necessary Findings, Adopting the Second Addendum to and Recertifying Final Environmental Impact Report FEIR 95-01 (SCH #95031012) and Readopting the Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program for the FEIR, and Denying Approval of Alternative Tentative Subdivision Map Proposals SUBMIT 1 ~D BY: Special Planning Projects Manager, Otay Ranc REVIEWED BY: City Manage0? (4/5ths Vote: Yes _ No X ) Village Development has submitted a revised subdivision map for a portion ofOtay Ranch SPA One Chula Vista Tract 96-04 to subdivide approximately 822 acres into 2,042 single family residential lots, approximately 1,722 multi-family residential units, one elementary school site, 7 park sites totaling 28 0 acres, 172.7 acres of open space, 11.5 acres of commercial and 18.2 acres of community purpose facility land. The application has been modified since the original submittal to delete the portion of land on which West Coast Land Fund (WCLF) holds a promissory note. Village Development proposes to delete this 288 acre area uom the original Tentative Map and redesign the lots in Village One and Five adjacent to WCLF collateral. The Environmental Review Coordinator has reviewed the proposed revised Tentative Map and has determined that while the revised map is in substantial conformance with the Otay Ranch SPA One Plan for which Final Environmental Impact Report 95-01 and the First Addendum were certified by the City CounciL the revision to delete 288 acres will require an a second Addendum. After preparation, the Second Addendum did not identifY any adverse environmental impacts. Removing acres of development and reducing the number of dwelling units will reduce the severity of the environmental impacts identified in EIR 95-01. Therefore, staff recommends the recertification of FEIR 95-0 I and the First and Second Addendum and reapproval of the Statement of Overriding Considerations and the Mitigation Monitoring Program related thereto. /f:/ Item: ~ Page 2 Meeting Date: August 20, 1996 ISSUES: The following are unresolved policy and design issues between the project applicant and staff: . Implications of deleting 288 acres !Tom the previously proposed tentative map . Gated Neighborhoods (Council requested issue) . Access to EastLake triangular parcel to the east of Village Five STAFF RECOMMENDATION: Adopt a Second Addendum to and recertifY FEIR 95-01 and the First Addendum for the Otay Ranch SPA One and Tentative Map for Otay Ranch, Chula Vista Tract 96-04. Adopt the attached resolution of approval of the Tentative Subdivision Map for Village One and Phase I-A of Village Five of the Otay Ranch SPA One, Chula Vista Tract 96-04, in accordance with the findings and subject to the conditions contained in the attached Draft City Council Resolution (Attachment 3). BOARDS/COMMISSIONS RECOMMENDATIONS: The Planning Commission met on August 14, 1996 and vote unanimously to recommend to the City Council approval of the Tentative Map for Village One and Phase I-A of Village Five. Adoption ofthe Second Addendum to the SPA One EIR was also included in their recommendation. The Commission reiterated their opposition to gates. The Commission's recommendation is Attachment 3. DISCUSSION: 1. BACKGROUND The original tentative map covering approximately 1, 11 0 acres of the Otay Ranch SPA One (all of Villages One and Five) was approved by the Planning Commission on July 10, 1996. The proposed map was scheduled to be reviewed by the City Council on August 6, 1996. On July 25, 1996 the Court released a"Stay of Action" which was previously applied to the property, that prohibited WCLF !Tom foreclosing on the subject property(See Exhibit A). In light of this action, Village Development requested a two week continuance !Tom the August 6 City Council hearing date so that they might prepare a revised tentative map excluding the 288 acres on which WCLF holds a collateral interest. Staff recommended and the City Council determined that it would be best to refer the matter back to the Planning Commission for review prior to the August 20, 1996 City Council hearing. On Thursday, August 8, 1996, the Court granted an additional stay of action until August 15, 1996 to enable the debtors to file the necessary papers with the 9th District Court of Appeals. The Planning Commission heard the revised Tentative map at their August 14,1996 meeting. 2. APPLICANT'S PROPOSAL The Applicant is proposing to revise the tentative map to delete that portion of the 288 acres ofWCLF collateral interest in Village One and Village Five (See Exhibit B). Neighborhoods R-12 is not /y..J.. Item: ~ Page 3 Meeting Date: August 20, 1996 proposed to be subdivided as this time because the collateral line bisects the area. Neighborhood R-I0 has been relotted to reflect the WCLF boundary. Village Development's revised subdivision map for their portion ofOtay Ranch SPA One Chula Vista Tract 96-04 to subdivide approximately 822 acres into: 2,042 single family residential lots 1,722_ multi-family residential units one 10 acre elementary school site 7 park sites totaling 27.2 acres 174.6 acres of open space 11. 5 acres of commercial 14.6 acres of community purpose facility land 3. ISSUES A. Implications of deleting 288 acres from the previously proposed tentative map Technical Committee: The Technical Committee consisting of representatives ITom Fire, Police, Planning and Public Works departments and the Project Team met on August 8, 1996 to review the proposal. Staff concerns are as follows: 1) Staff is concerned that future flexibility to replan Village Five would be lost if the center portion of SPA One is deleted. WCLF has previously their voiced concern on the park, school and CPF uses located on their collateral in the Village Five Core. It is therefore foreseeable that if WCLF gains the property rights to the collateral that they would seek a SPA amendment to relocate these uses elsewhere in Village Five, which would require discussions with Village Development and City staff. City staff believes that these issues should be addressed between all parties prior to approval of any tentative map for Village Five. 2) Staff sees the eastern part of Village Five as just a large subdivision without the support of the village core or other amenities. 3) Staff is also concerned about the development of the pedestrian paseos if split by the property holdings. This pedestrian facility will not go anywhere until the village core is developed. 4) Planning Department is concerned with proposed access through non-gated neighborhoods. There are portions ofWCLF collateral that are ooly accessed through a gated Village Development neighborhood. This access would not comply with City ordinance or policies. 5) Grading adjacent to or on the WCLF collateral for Village Development is also a concern. While the subdivision may be approved, actual development could be held back ITom the undeveloped property between 50 to 100 feet to avoid future grading conflict when the WCLF property does develop. /5'3 Item: ~ Page 4 Meeting Date: August 20, 1996 6) Both the Police and Fire Departments continue to express concern regarding the applicant's proposal. They want to be ensured that La Media Road and East Palomar Street will be in place no later than the trigger points which were established for the original tentative map proposal. They reiterated that if possible they would strongly prefer that these road segments be installed earlier than original1y approved. While initial analysis indicated the thresholds could be met, the departments remain concerned with the current proposal and the timing of La Media and East Palomar. Both departments also indicated their concern with Neighborhood R-33 in Village Five and would like to have a temporary secondary access into this neighborhood crom Telegraph Canyon Road. The existing sewer road may be used as an emergency access to this neighborhood. B. Gated Neighborhoods During the SPA One Plan hearings, the Planning Commission recommended to deny the use of gates as proposed by the project applicant in the SPA Plan. The City Council voted tentatively (3-2) to support the Planning Commission's recommendation, but agreed to reconsider their final decision on gates when the Tentative Map was submitted. Eight gates are proposed on the Revised Tentative Map restricting access to all the single-family neighborhoods in both villages Under the SPA proposal, only the single-family neighborhoods north of Palomar Street in Village One were proposed to be gated. The Tentative Map proposes gates for the neighborhoods south of Palomar Street as well as the others proposed under the SPA Plan. For analysis, staff has numbered the gates 1 through 10 on the previous tentative map. On the revised map, Gates 4 and 8 are on the WCLF collateral. Gates 1,2 and 3 now restrict auto access to the Village One neighborhoods north of Palomar Street. There are 874 single-family homes behind these gates on Village Development property. There were 115 lots in Neighborhoods R-9 and 11 that are on WCLF collateral on the original tentative map. Gates 5, 6 and 7 restrict vehicular access to the 159 homes proposed south of Palomar ~treet in Village One. On the original tentative map, there were 199 lots in the WCLF collateral and 185 in Village developments property neighborhoods R- 12, 13 and 14. Vehicular access to the Village Development's portion of Village Five is now restricted by Gates 9 and 10. All the gates restrict vehicular access only. Pedestrians, bicyclists and carts will have full access under the proposed gating plan. Gates having the most amount of traffic are tentatively proposed to be staffed. Under the proposed phasing plan, it should be noted that the gates will remain open for a number of years prior to being closed to the general public. While staff believes the proposal to gate neighborhoods has merit in either alternative, we believe the City Council should consider the following points which are not specifically addressed in the table: Exclusivity vs. Community: There are many arguments for and against gated communities rrom a social perspective. Concerns have been raised that separating segments of society behind walls and gates will only lead to further economic and racial segregation within our community. There is the fear that those who live behind gates have a greater apathy for those outside. On the other hand, others argue that gates create more of a sense of neighborhood and community than a traditional subdivision. 15., 'I Item: ---' Page 5 Meeting Date: August 20, 1996 The feeling is that people will work better together to support their "defined" neighborhood rather than losing that focus in a sprawling subdivision. Crime: Fear of crime is the most important factor leading to the move toward gated communities. People see gates and guards and assume an area is inherently more secure. That fact, however, is debatable and is dependent on the type of crime studied. Some reports on crime in gated communities show that certain offenses, such as petty theft or voyeurism, are reduced with the presence of gates. However, certain violent crimes that usually involve people who are known to each other, like murder and rape, may not be reduced. Nonetheless, the perception of any affected homeowner is that gated neighborhoods are safer. Traffic and Circulation: Reducing traffic flow and making streets safer is one of the main reasons gates are proposed. Proponents of gated communities argue that diverting traffic ITom high volume residential streets makes the streets quieter and safer for children. In addition, if only residents are allowed access to the streets, monitoring strangers driving through neighborhoods will be easier, therefore, making the area safer for the residents. Opponents argue that gating a community may do nothing more than transfer the problem of residential traffic ITom one street to another. They believe that these communities may create more congestion by concentrating traffic on collector streets outside the development. Although if the gated community is only a feeder to the major arterial (like a street system that is basically a series of cul-de- sacs), it makes little difference if it is gated or not in terms of the traffic coming into a collector street. Some literature argues that the gating of communities reduces choice and opportunities for vehicular travel routes. This could be true depending upon the design of the street system. If it were a grid system it could be true but it would not be true if it were a cul-de-sac system. Emergency Access: Gated communities pose challenges for emergency responses ITom police, fire and paramedics. Unless properly controlled, gates can lead to minor delays or can result in major difficulties in responding to emergencies or acting to evacuate areas. Mechanical access systems to these communities exist but may not operate effectively at all times. Systems that rely on solely entry codes face the problem of notifYing emergency services when the code is changed. If these emergency services are not notified in time, delays may result. Additionally if gated communities have limited points of entry and, if one entry is blocked, there is an increased delay in access to the emergency. Currently, systems like the "Opticom" Vehicle Strobe Detector Systems, Knox Boxes and Knox Key Switches are provided to eliminate any difficulty in responding to emergencies that police, fire or paramedics might have. These systems work effectively and have not led to substantially lower response times. To ensure that, redundant multiple systems could be required. Even with these systems, the Police and Fire Departments are still concerned and feel that gates should be staffed 24 hours a day if the gated communities cover the large number of units as proposed by the applicant. Metropolitan Transit Development Board: MTDB staff is not supportive of gated communities, primarily because they believe gating contributes to a discontinuous street system and restricts mobility. They believe that discontinuous streets inhibit pedestrian, bicycle and transit circulation and increase /y5 Item: ~ Page 6 Meeting Date: August 20, 1996 automobile dependence. In addition, they believe gates form artificial barriers between neighborhoods. MTDB sees this action as contrary to the neo-traditional goals of the Otay Ranch GDP. During the SPA Plan review, staff prepared a gated communities policy paper containing general and specific guidelines for gating neighborhoods. The general guidelines focused on the following items: . Discourage gates in communities where the Growth Management Threshold Standards could not be met. . Maintain pedestrian and bicycle access to parks, open space and other facilities. . Require that all State and City criteria be met for street design, including access for school buses, trash pick-up and mail delivery and enforce the traffic and parking regulations of the Vehicle Code. . Review and approve the number of units behind gates to reduce impacts to surrounding communities. The specific guidelines and requirements focused on the following: . Signs indicating gated street areas and location of trails and parks open to the public. . No public services such as libraries, fire or police stations located behind gates. . Maintain alternative access to public facilities. . Enforcement of the Vehicle Code in gated communities. . Require staffing on some or all of the gates. The Engineering Department criteria for gated communities requires: . Sufficient stacking for peak flows . Construct streets to City standards but privately maintained . Private storm drains . Private street lights conforming to public standards In addition, the Chula Vista Elementary School District wants to ensure access for the school buses, require hold harmless and indemnification agreements and insurance ITom the homeowners association. Recommendation: The gates, as proposed on the Tentative Map, meet the criteria as proposed by staff in the following table. While restricting vehicular access to a limited number of the single-family neighborhoods could be acceptable, staff is still concerned about the number of units proposed behind gates in this project and recommends denial of the gates as proposed. Gated products on a reduced scale could be acceptable and might be advantageous to the overall project by providing an additional mix of residential opportunities to the overall community. So, while what is proposed by the applicant is not recommended, less intense gated areas could acceptable. Additionally, at the July 10 Planning Commission hearing, the Commission reiterated their previous position which was not in support of gating the project. I..?j, Item: ~ Page 7 Meeting Date: August 20, 1996 The following table analyzes the 10 proposed gates in relationship to the above criteria: General Criteria GMOC Yes Yes Yes *" Yes Yes Yes *" Yes Yes Threshold Standards Ped access Yes Yes Yes *" Yes Yes Yes *" Yes Yes City Ord Yes Yes Yes *" No No No *" Yes Yes Other Yes Yes Yes *" Yes Yes Yes *" Yes Yes AQencies Number of 989 989 989 989 364 364 364 H98 H98 H98 units 874 874 874 159 159 159 1098 1098 Specific Criteria Sil!l1S Yes Yes Yes *" Yes Yes Yes *" Yes Yes Signs to Yes Yes Yes *" Yes Yes Yes *" Yes Yes . Dublic file Facilities Yes Yes Yes *" Yes Yes Yes *" Yes Yes private Access to Yes Yes Yes *" Yes Yes Yes *" Yes Yes otber attractors Public Yes Yes Yes *" Yes Yes Yes *" Yes Yes enforcmnt Staffed No Yes Yes No No No No No Yes Yes Stacking Yes Yes Yes *" Yes Yes Yes *" Yes Yes Pvt. Street Yes Yes Yes *" Yes Yes Yes *" Yes Yes Pvt. Drain Yes Yes Yes *" Yes Yes Yes *" Yes Yes Pvt. St. Yes Yes Yes *" Yes Yes Yes *" Yes Yes LigbtinQ Scbool bus Yes Yes Yes *" Yes Yes Yes *" Yes Yes Staff has included conditions of approval for gates if the Council determines some are appropriate. C. Access to EastLake Triangular parcel: Some time in the future , when appropriate, EastLake will be requesting that the City install a signalized intersection on Otay Lakes Road at the triangular parcel. EastLake has funded a private traffic study that indicates a mid-block signal would function within City standards. EastLake Development also commissioned City staff to have a traffic study done to determine whether of not a traffic signal and median opening would be warranted on Otay lakes Road at the entrance to the Eastlake triangular parcel. This study, which was done by BRW, Inc., indicated that it may be more desirable to have a signal installed at the entrance to the triangular parcel rather than limit the traffic to right turns in and out and have that traffic making "u-turns" at a signal to the east. However, the study also indicated that, if the signals at SR-125 ramps were not interconnected with the City signals and on the same timing system, backups could occur which would stack up through IY} Item: ~ Page 8 Meeting Date: August 20, 1996 the entrance to the triangular parcel. Staff will make a final detennination on the advisability of traffic signal and median opening when a development proposal with sufficient traffic generation infonnation is submitted to the City for approval. Planning Commission took no action on this issue. 4. STAFF RECOMMENDATIONS Alternative A - Approve Village One Only Staff recommends approval of the Tentative Map for only Village Development's portion of Village One and denial of the map for Village Five. Approval of the Tentative Map for Village Five together with the previously approved development agreement substantially restricts the City's flexibility to adjust land uses in the future for the WCLF collateral properties in Village One and Five. West Coast Land Fund has previously indicated they are not satisfied with the SPA One land use plan and they may desire an amendment to adjust the school and park locations, increase the commercial acreage, delete multi-family areas and add single-family neighborhoods. If Village Development is successful in retaining ownership the proposed map can be brought back to the Commission and Council for approval. Any modification to the existing SPA land use plan will require a SPA amendment and a new tentative. The recommendation for only Village Development's portion of Village One will subdivide 556.54 acres into: I, 126 single family residential lots 1,457 multi-family residential units one lOA acre elementary school site 11.5 acres of commercial 11.6 acres of community purpose facility 4 park sites totaling 22.2 acres 116.3 acres of open space If the City Council wishes to approve the staff alternative for only Village One, a resolution of approval with conditions is available for Council consideration (Attachment B) Alternative B - Approve Village I and Phase I-A of ViUage 5 Only Alternatively, staff could also support approval of the tentative map for only Village Development's portion of Village One plus Phase I-A of Village 5 which will subdivide 608.24 acres into: 1,362 single family residential lots 1,457 multi-family residential units one lOA acre elementary school site 5 park sites totaling 23.5 acres 122.7 acres of open space Iyr , , Item: ~ Page 9 Meeting Date: August 20, 1996 11.5 acres of commercial 11.6 acres of community purpose facility land. This alternative would give Village Development additional entitlements for their land sales program. Staff believes that because of the limited size of Phase I-A (236 units 51.7 acres), City services easily can be extended and threshold standards can still be maintained while not restricting future flexibility to reallocate land uses. Construction of Gate 10 is also possible. FISCAL IMPACT: There is no impact of processing the tentative map application on the General Fund because Village Development is reimbursing the City through a deposit account. However, the June, 1996 invoice of $ 88,156.46 was due and payable on July 25, 1996. The July, 1996 invoice for $76,234.83 is due and payable on August 26, 1996 for a total of$ 164,391.29. It is staffs recommendation that the project be continued until Village Development is current on all delinquent accounts. Staff will present an oral report to Council on the status of the account. The Indemnification and Resource Conveyance Agreements between Village Development and the City are ready for the City Council action. The Open Space Feasibility Study require by the SPA has been approved by the City Engineer and the Director of Parks and Recreation. Attachments: ~bit A: August 2, 1996 Councillnformational Memo !bit B: Revised Tentative Map xhibit C: Second Addendum to OtayRanch SPA One EIR 95-01 ttachment I Draft City Council Resolution Approving Applicant's Proposal fi Attachment 2 Draft City Council Resolution Approving Staff Alternative A - Village I F-. Attachment 3 Draft City Council Resolution Approving Staff Alternative B - Village I and Phase I-A ~ I~' RESOLUTION NO. / X;/ / r: ~L{~ RESOLUTION OF THE CITY COUNCIL APPROVING A RESOURCE CONVEYANCE AGREEMENT FOR THE OTAY RANCH SPA ONE, CHULA VISTA TRACT 96-04 WHEREAS, on October 28, 1993, the San Diego County Board of Supervisors and the Chula Vista City Council jointly adopted the Otay Ranch General Development Plan/Subregional Plan (GDP/SRP), including the Otay Ranch Phase I Resource Management Plan (Phase I RMP), governing the development of the 23,000-acre Otay Ranch project; and, WHEREAS, on October 28, 1993, the Chula Vista City Council, pursuant to Resolution No. 17298, and in accordance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code ~21000 et seq.), certified the Final Program Environmental Impact Report for the GP, SCH #9010154 ("Program ErR 90-01" or "Program EIR"), made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations; and, WHEREAS, the GDP and Phase I RMP require, as a condition of the development of Otay Ranch, the phased creation of an 11 ,375-acre Resource Preserve to be owned and operated by a public or quasi-public Preserve Owner/Manager; and, WHEREAS, the Otay Ranch GDP Program EIR and Findings of Fact find that the creation of the 11 ,375-acre Resource Preserve mitigates identified biological impacts of the Otay Ranch project, including cumulative biological impacts; and, WHEREAS, the Statement of Overriding Considerations for the Otay Ranch GDP Program EIR and Findings of Fact find that the creation of the 11,375-acre Resource Preserve mitigates identified biological impacts of the Otay Ranch project, including cumulative biological impacts; and, WHEREAS, on March 6, 1996, the San Diego County Board of Supervisors adopted the Otay Ranch Preserve Conveyance Plan which identifies specific open space areas within Otay Ranch which must be conveyed to the Otay Ranch Preserve Owner/Manager as a condition of the development of Otay Ranch SPA One; and, WHEREAS, on June 4, 1996, the City of Chula Vista City Council adopted the Otay Ranch Phase 2 Resource Management Plan (Phase 2 RMP), including a Preserve Conveyance Plan essentially identical to the plan previously adopted by the San Diego County Board of Supervisors; and, WHEREAS, the Conveyance Plan adopted by the City of Chula Vista and the San Diego County Board of Supervisors, requires that for every one acre of developable land within Otay Ranch, the project applicant must convey 1.188 acres of preserve land to the Preserve Owner/Manager as a condition of approval of each Final Map, or pay a fee-in-lieu thereof; and, } ~ -/Q WHEREAS, on June 4, 1996, the City of Chula Vista enacted the Otay Ranch SPA One Plan, including a SPA condition that development within SPA One convey land to the Preserve Owner/Manager in compliance with the provisions of the Phase 2 RMP and the Otay Ranch Preserve Conveyance Plan; and, WHEREAS, on May 14, 1996, the City Vista City Council, pursuant to Resolution No. 18284, and in accordance with CEQA, certified the SPA One Second-Tier Environmental Impact Report and Addendum, SCH #95021012 ("FEIR 95-01" or "SPA One EIR"), made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations; and, WHEREAS, in accordance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code 921000 et seq.) the Otay Ranch General Development Plan ("GDP") Program Environmental Impact Report, SCH #9010154 ("Program EIR 90-01" or "Program EIR"), was prepared to analyze the significant environmental impacts of the GDP, as well as mitigation measures and alternatives to lessen or avoid those significant environmental impacts to the extent feasible; and, WHEREAS, on October 28, 1993, the Chula Vista City Council, pursuant to Resolution No. 17298, and in accordance with CEQA certified the Otay Ranch GDP Final Program EIR, made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations; and, WHEREAS, in reliance on the analysis in the Otay Ranch Program EIR, the Sectional Planning Area One ("SPA One") Second-Tier Environmental Impact Report, SCH #95021012 ("FEIR 95-01" or "SPA One EIR"), was prepared to analyze the significant environmental impacts of SPA One, as well as mitigation measures and alternatives to lessen or avoid those significant environmental impacts to the extent feasible; and, WHEREAS, on May 14, 1996, the Chula Vista City Council, pursuant to Resolution No. 18284, and in accordance with CEQA, certified the SPA One EIR, made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations; and, WHEREAS, the SPA One EIR incorporated the findings, conclusions and mitigation measures contained in the Otay Ranch GDP Program EIR, including those mitigation measures relating to the creation of the 11,375-acre Resource Preserve; and, WHEREAS, the Phase I RMP, the Phase 2 RMP, the GDP, the Conveyance Plan and attendant environmental documentation rely upon implementation of the land plan and the Resource Preserve System which concentrates development onto less sensitive and non-sensitive land while preserving large interconnected areas of habitat; and, WHEREAS, the Resource Preserve not only mitigates environmental impacts caused by the development of SPA One, but also mitigates impact caused by the construction of public facilities outside of SPA One which are needed to serve SPA One; and, WHEREAS, Village Development and the City have executed a Pre-annexation Development Agreement which compels Village Development to comply with all existing approvals including the GDP, Phase 1 RMP, Phase 2 RMP and the Open Space Conveyance Plan; and, )1- ) I WHEREAS, the SPA One Conditions of Approval ItS requires an agreement to implement the GDP, Phase I and 2 RMP with the City prior to approval of the initial SPA One Tentative Map; NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL PASSED, APPROVED and ADOPTED the attached Agreement for Implementation Of The Otay Ranch Phase 2 Resource Management Plan As It Relates To The Conveyance Of Land To The Otay Ranch Preserve Owner/Manager Attendant To Otay Ranch Spa One. 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: Gerald J. Jamriska, AICP Special Planning Projects Manager ~ '-1 rY(,(K~ Ann Y. Moore Interim City Attorney Jt - ) ~ .iI) ~J( - ~ - RESOLUTION NO. 18417 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE INDEMNIFICATION AGREEMENT BETWEEN VILLAGE DEVELOPMENT AND THE CITY OF CHULA VISTA WHEREAS, the Indemnification Agreement was originally approved by the city with Village Development on May 14, 1996. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the First Amendment to the Indemnification Agreement between Village Development and the City of Chula vista, a copy of which is on file in the office of the City Clerk as Document No. BE IT FURTHER RESOLVED that the Mayor of Chula vista is hereby authorized and directed to execute said First Amendment to the Indemnification Agreement on behalf of the city of Chula vista. Presented by Approved as to form by CL- y~ Ann Y. Moore, Acting city City Attorney Gerald Jamriska, Special Planning Projects Manager C:\rs\resource,ind /'-)3 ~ /-('/) AGREEMENT FOR IMPLEMENTATION OF THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN AS IT RELATES TO THE CONVEYANCE OF LAND TO THE OTAY RANCH PRESERVE OWNER/MANAGER ATTENDANT TO OTAY RANCH SPA ONE THIS AGREEMENT, made this day of 1996, for the purposes of reference only and effective as of the date last executed by the parties, is made between THE CITY OF CHULA VISTA, a Chartered municipal corporation of the State of California ("City") and VILLAGE DEVELOPMENT, a California general partnership, Tiger Development Two, a California limited partnership, by Tigerheart Inc., a California corporation, and THE OTAY RANCH, L.P., a California limited partnership, collectively referred to hereafter as ("Village"), and is made with reference with the following facts: WHEREAS, on October 28, 1993, the San Diego County Board of supervisors and the Chula vista City Council jointly adopted the Otay Ranch General Development Plan/Subregional Plan (GDP), including the otay Ranch Phase 1 Resource Management Plan (Phase 1 RMP), governing the development of the 23,000 acre Otay Ranch project; and, WHEREAS, on October 28, 1993, the Chula vista City council, pursuant to Resolution No. 17298, and in accordance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code S21000 et seq.), certified the Final Program Environmental Impact Report for the GP, SCH #9010154 ("Program EIR 90-01" or "Program EIR"), made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations; and, WHEREAS, the GDP and Phase 1 RMP require, as a condition of the development of otay Ranch, the phased creation of an 11,375 acre Resource Preserve to be owned and operated by a public or quasi-public Preserve/Owner Manager; and, Fact find mitigates including WHEREAS, the Otay Ranch GDP Program EIR and Findings of that the creation of the 11,375 acre Resource Preserve identified biological impacts of the Otay Ranch project, cumulative biological impacts; and, WHEREAS, the Statement of Overriding Consideration for the Otay Ranch GDP finds that the creation of the managed Resource Preserve provides for substantial social, environmental and economic benefit, so as to outweigh the project's adverse, unavoidable environmental impacts; and, 1 WHEREAS, on March 6, 1996, the San Diego County Board of supervisors adopted the otay Ranch Preserve Conveyance Plan which identifies specific open space areas within otay Ranch which must be conveyed to the otay Ranch Preserve Owner/Manager as a condition of the development of otay Ranch SPA One; and, WHEREAS, on June 4, 1996, the City of Chula vista City Council adopted the Otay Ranch Phase 2 Resource Management Plan (Phase 2 RMP), including a Preserve Conveyance Plan essentially identical to the plan previously adopted by the San Diego County Board of supervisors; and, WHEREAS, the conveyance Plan adopted by the city of Chula vista and the San Diego County Board of supervisors, requires that for everyone acre of developable land within otay Ranch, the project applicant must convey 1.188 acres of preserve land to the Preserve Owner/Manager as a condition of approval of each Final Map, or pay a fee-in-lieu thereof; and, WHEREAS, on June 4, 1996, the city of Chula vista enacted the Otay Ranch SPA One Plan, including a SPA condition that development within SPA One convey land to the Preserve Owner/Manager in compliance with the provisions of the Phase 2 RMP and the Otay Ranch Preserve Conveyance Plan; and, WHEREAS, on May 14, 1996, the City vista City Council, pursuant to Resolution No. 18284, and in accordance with CEQA, certified the SPA One Second-Tier Environmental Impact Report and Addendum, SCH #95021012 ("FEIR 95-01" or "SPA One EIR") , made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding considerations; and, WHEREAS, in accordance with the California Environmental Quali ty Act ("CEQA") (Pub. Resources Code !;21000 et seq.) the otay Ranch General Development Plan ("GDP") Program Environmental Impact Report, SCH #9010154 ("Program EIR 90-01" or "Program EIR"), was prepared to analyze the significant environmental impacts of the GDP, as well as mitigation measures and alternatives to lessen or avoid those significant environmental impacts to the extent feasible; and, WHEREAS, on October 28, 1993, the Chula vista City Council, pursuant to Resolution No. 17298, and in accordance with CEQA certified the otay Ranch GDP Final Program EIR, made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of overriding Considerations; and, WHEREAS, in reliance on the analysis in the otay Ranch Program EIR, the sectional Planning Area One ("SPA One") Second- Tier Environmental Impact Report, SCH #95021012 ("FEIR 95-01" or "SPA One EIR") , was prepared to analyze the significant 2 environmental impacts of SPA One, as well as mitigation measures and alternatives to lessen or avoid those significant environmental impacts to the extent feasible; and, WHEREAS, on May 14, 1996, the Chula vista City Council, pursuant to Resolution No. 18284, and in accordance with CEQA, certified the SPA One ErR, made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations; and, WHEREAS, the SPA One ErR incorporated the findings, conclusions and mitigation measures contained in the otay Ranch GDP Program ErR, including those mitigation measures relating to the creation of the 11,375 acre Resource Preserve; and, WHEREAS, the Phase 1 RMP, the Phase 2 RMP, the GDP, the Conveyance Plan and attendant environmental documentation rely upon implementation of the land plan and the Resource Preserve System which concentrates development onto less sensitive and non- sensi ti ve land while preserving large interconnected areas of habitat; and, WHEREAS, the Resource Preserve not only mitigates environmental impacts caused by the development of SPA One, but also mitigates impact caused by the construction of public facilities outside of SPA One which are needed to serve SPA One; and, WHEREAS, Village and the City have executed a Pre- annexation Development Agreement which compels Village to comply with all existing approvals including the GDP, Phase 1 RMp, Phase 2 RMP and the Open Space conveyance Plan; and, WHEREAS, Village has a current application pending before the City for Tentative Map approvals related to Otay Ranch SPA One; and, WHEREAS, the SPA One Conditions of requires the Tentative Map applicant to enter with the City prior to approval of the initial Map to implement provisions of the Phase 2 RMp; Approval No. 5 into an agreement SPA One Tentative NOW, THEREFORE, the parties hereto do hereby agree as follows: 1. Pursuant to the SPA I Resource Preserve Conveyance Plan and the Phase 2 RMP, Village agrees to convey land described in Paragraph 3 below ("the Land to be Conveyed"). Village agrees to convey to the Preserve/Owner Manager said land prior to approval of each Final Map submitted for approval to the City. Village agrees to provide the City with proof that such conveyance of fee or easement has been completed prior to or upon its application or 3 request for each final map approval. For purposes of this Agreement, "each Final Map" shall be defined as set forth in Chula Vista Municipal Code section 18.08.180, which includes what may be referred to as an "A Map" or "Superblock Map". 2. Pursuant to the Phase 2 RMP Village shall convey 1.188 acres of preserve land within the Resource Preserve for each one (1) developable acre in each Final Map. Pursuant to the Phase 2 RMP a developable acre is defined as the land area contained in each Final Map excluding schools, local parks, arterials, SR 125, lands designated as a public use area and Limited Development Areas in Planning Areas 16 and 17. Pursuant to the SPA One Tentative Map, there are 1,054.2 acres of developable land within SPA One, which requires Village to convey 1,252.4 acres of land to the Resource Preserve to mitigate the impacts of such development. 3. The Land to be Conveyed shall be located in an area in conformance with the criteria set forth in the Phase 1 and 2 RMP and the SPA One Preserve Conveyance Plan. All parcels to be conveyed to the POM shall be generally contiguous unless determined otherwise by the City Manager or designee. The Land to be Conveyed must be approved by the City Manager or designee. 4. Village Development agrees that the Land to be Conveyed shall be in fee, free and clear of liens or encumbrances, except for easements for existing public infrastructure and easements for planned public infrastructure as permitted in the Phase 2 RMP. 5. Notwithstanding Paragraph 4, upon written consent of the POM and the appropriate lien holder, Village may convey an easement to the POM which restricts use of the Land to be Conveyed to those uses permitted by the Phase I and II RMP. Conveyance of said easement shall be required upon the recordation of each Final Map for an amount of land equal to the final map's obligation to convey land to the Resource Preserve. If Village conveys an easement with the requisite consent, it shall provide written subordination of any prior lien holders in order to enstIre that the POM has a first priority interest in such land. Where an easement is conveyed, fee title shall be conveyed immediately upon demand by the POM. Where consent and subordination cannot be obtained, Village shall convey fee title. 4 6. At the time of conveyance, Village agrees to provide, at its sole cost and expense, a standard form C.L.T.A. Owner's Title Insurance Policy issued by a title company acceptable to City insuring POM's title to the Land to be Conveyed subject only to the exceptions set forth in Phase 2 RMP. 7. Village agrees to indemnify, hold harmless, pay all costs and provide a defense for City in any legal action filed in a court of competent jurisdiction by a third party challenging the validity of this Agreement. The provisions of this section 7 shall not apply to the extent such damage, liability or claim is caused by the intentional or negligent act or omission of City, its officers, agents, employees or representatives. 8. Village acknowledges that the City of Chula vista and the County of San Diego are currently developing ordinances which will permit payment of fees-in-lieu of Land to be Conveyed to the POM. It is anticipated that said City ordinance will be considered by the City Council in its discretion prior to approval of any Final Map. Village agrees to comply with the provisions of said City ordinance upon its adoption. 9. All provisions of this Agreement are binding on Village and its successors in interest. The parties further agree that this covenant touches and concerns the land within the territory of Otay Ranch General Development Plan, and is for the specific benefit of the City. The parties agree that this Agreement shall run with the land and shall be recorded upon its execution. 10. The Recitals set forth in this Agreement are part of this Agreement. 11. If there is a conflict between this Agreement and the provisions of the SPA I Preserve Conveyance Plan, Phase 1 or 2 RMP, the provisions of the SPA I Conveyance Plan, Phase I or 2 RMP shall prevail. 12. The City is a third party beneficiary of this Agreement and has the right, but is not required to enforce the provisions contained herein. Village shall provide any purchaser of property within SPA One with notice of this Agreement. 5 13. village acknowledges and agrees that conveyance of the preserve land in accordance with this Agreement is necessary and needed to mitigate the environmental impacts, as identified in the Program ErR, 95-01, and the GDP PCM 90-03, resulting from the development of SPA One of the otay Ranch Project. IN WITNESS WHEREOF, the parties hereto do hereby agree as of the date indicated adjacent to their signature below. 6 SIGNATURE PAGE TO AGREEMENT FOR IMPLEMENTATION OF THE OTAY RANCH PHASE 2 RESOURCE MANAGEMENT PLAN AS IT RELATED TO THE CONVEYANCE OF OPEN SPACE TO THE OTAY RANCH PRESERVE OWNER/MANAGER ATTENDANT TO OTAY RANCH SPA ONE DATED: DATED: THE CITY OF CHULA VISTA VILLAGE DEVELOPMENT, a California general partnership By: . shirley Horton, Mayor By: James P. Baldwin, Partner ATTEST city Clerk DATED: Approved as to form by OTAY RANCH, L.P., a California limited partnership By: Sky Communities, Inc., a California corporation, General Partner Ann Moore Acting city Attorney By: DATED: TIGER DEVELOPMENT TWO, a California limited partnership, By: Tigerheart, Inc., a California corporation By: James P. Baldwin, President C:\Ag.t\Convagr1.Doc 7 -;it/ 5;5 t I I I FIRST AMENDMENT TO AGREEMENT FOR INDEMNIFICATION AND COVENANTS FOR ACTIONS TAKEN BY CITY RELATED TO THE OTAY RANCH This First Amendment to Agreement for Indemnification and Covenants for Actions Taken by City Related to the otay Ranch is made as of July 30, 1996, by and between THE CITY OF CHULA VISTA, a Chartered municipal corporation of the State of California ("City"), The Otay Ranch, L.P. ("Otay"), a California limited partnership, and Village Development ("village"), a California general partnership, acting on their own behalf and on behalf of various other Baldwin-related entities they have been empowered to act as the agent for in the securing of entitlements, Tiger Development Two ("Tiger"), a California limited partnership, James Baldwin and Al Baldwin, (Otay, Village, Tiger, James Baldwin and Al Baldwin are collectively referred to herein as "The Baldwin Group", and when doing so in the context of a duty or obligation, shall constitute a joint and several duty on each and everyone of said entities) and is made with reference with the following facts: RECITALS WHEREAS, the Parties entered into an Agreement for Indemnification and Covenants for Actions Taken by city Related to the Otay Ranch on May 14, 1996, which was approved by the city council by Resolution No. 18287 on May 14, 1996, ("The Original Agreement"), and; WHEREAS, good cause exists for amending The original Agreement. NOW, THEREFORE, the Parties hereto do hereby agree as follows: amended amended The following portion of The Original Agreement is hereby and shall henceforth read as follows, unless further in writing by the Parties: II. Third Party Claims. A. Indemnity. The Baldwin Group hereby agrees to indemnify and hold the City, and each of its officers (including elected officials), employees and agents ("Indemnitees") harmless from and against any and all claims, suits, actions, or other proceedings to which the Indemni tees are exposed ("Proceedings") and from and against any and all losses, expenses, expenditures, costs, judgments, decrees, and orders (including orders for the payment of attorney's fees and costs) to which the Indemnitees are exposed or which the Indemnitees have incurred ("Losses") relating to, caused 1 by, or resulting from the Indemnitees's preparations, review, approval or implementation of each and all of the Current Applications for Discretionary Approvals and otay Ranch Tentative Map(s), Otay Ranch Development Agreement and otay Ranch Open Space Conveyance Plan ("Indemnitee's Actions"), including, but not limited to: (1) any and all Proceedings related to an alleged violation of automatic stays that may apply in the existing Bankruptcy Case or future bankruptcies; or, (2) any and all Proceedings to attack, set aside, void or annul any of the decisions or determinations that the Indemnitees make in connection with the approval of the Project, including but not limited to, circulation and certifications of Environmental Impact Report, and the making of findings, approval of mitigation measures, approval of a mitigation monitoring and reporting programs, and statement of overriding considerations; or, (3) any and all Proceedings contending Indemnitee's Actions constitute one incidences of exercise of eminent domain, or inversely; or, that the or more directly (4) and all Proceedings contending that the Indemnitee's Actions are invalid as not roughly proportional to the impact of the development; or, (5) any and all Proceedings asserting any other theory contesting or challenging the lawfulness or legality of the Indemnitee's Actions. In addition, at page one of the Original Agreement, footnote 3 is hereby deleted. All other provisions of the Original Agreement remain in full force and effect. By signature below, the Parties hereto acknowledge receipt of good and valuable consideration upon execution of this First Amendment. 2 SIGNATURE PAGE TO FIRST AMENDMENT TO AGREEMENT FOR INDEMNIFICATION AND COVENANTS FOR ACTIONS TAKEN BY CITY RELATED TO THE OTAY RANCH IN WITNESS WHEREOF, the parties hereto do hereby agree as of the date indicated adjacent to their signature below. DATED: THE CITY OF CHULA VISTA Shirley Horton, Mayor [attach acknowledgement] ATTEST Beverly A. Authelet City Clerk APPROVED AS TO FORM: Ann Y. Moore Acting City Attorney DATE: THE OTAY RANCH, L.P., a California limited partnership By Sky Communi ties, Inc., a California Corporation, its General Partner, By: Alfred E. Baldwin President Village Development, a California General Partnership, By: Alfred E. Baldwin General Partner 3 Tiger Development Two, a California Limited Partnership, By: Alfred E. Baldwin President James Baldwin, by Alfred E. Baldwin, his attorney in fact per power of attorney attached Alfred E. Baldwin C:\Agmt\A~endmnt.lnd 4 DATE: August 16, 1996 FROM: Honorable Mayor and City Council ~ ( .. rJ.. . Ann Moore, Actlng Clty Attorney TO: SUBJECT: Council Agenda Item Number 15 These resolutions late for review. signed copies of August 20, 1996. were submitted to the City Attorney's Office too The City Attorney's Office will be providing the resolutions prior to the hearing on I' 'I I .' -:# J~s]) j Attachment 1 Village Development RESOLUTION No. 18398 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A REVISED TENTATIVE SUBDIVISION MAP FOR PORTIONS OF THE OT A Y RANCH SPA ONE, CHULA VISTA TRACT 96-04, AND MAKING THE NECESSARY FINDINGS, ADOPTING THE SECOND ADDENDUM TO AND RECERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT FEIR 95-01 (SCH #95021012) AND READOPTING THE STATEMENT OF OVERRIDING CONSIDERATIONS AND THE MITIGATION MONITORING AND REPORTING PROGRAM FOR THE FEIR AND DENYING APPROVAL OF ALTERNATIVE TENT A TIVE MAP PROPOSALS. WHEREAS, the property which is the subject matter of this resolution is identified and described on Chula Vista Tract 96-04 and is commonly known as Otay Ranch Sectional Planning Area (SPA) One ("Property"), and; WHEREAS, Village Development filed a duly verified application for the subdivision of the Property in the form of the tentative subdivision map known as Otay Ranch SPA One, Chula Vista Tract 96-04, with the Planning Department of the City of Chula Vista on December 6, 1995 ("prejeet"), and; WHEREAS, Village Development filed a revised tentative map for Tract 96-04 ("Pro;ect") on August 9, 1996, and; WHEREAS, 5ftitl the revised application requested the approval for the subdivision of approximately 822 acres located south of Telegraph Canyon Road between Paseo Ranchero and the future alignment of SR-125 into 3,729 residential lots, 235 acres of open space, one 10 acres school site and one school site proposed for the area west of Paseo Ranchero, 26.5 acres of neighborhood parks and 18.5 acres of community purpose facility lots, and; WHEREAS, City staff has recommended that only the Village one portion of the proposed tentative map owned by Village Development be recommended for approval, or in the alternative, the portions of Village One owned by Village Development and Phase I-A of Village Five be approved as more specifically set forth in the staff report, and; WHEREAS, the development of the Property has been the subject matter of a General Development Plan ("GDP") previously approved by the City Council on October 28, 1993 by I Resolution No. 17298 and as amended on May 14, 1996 by Resolution No. 18285 ("GDP Resolution") wherein the City Council, in the environmental evaluation of said GDP, relied in part on the Otay Ranch General Development Plan, Environmental Impact Report No. 90-01, SCH # 89010154 ("Program EIR 90-01 "), and; WHEREAS, the development of the Property has been the subject matter of a Sectional Planning Area Plan ("SPA Plan") previously approved by the City Council on June 4, 1996 by Resolution No. 18286 ("SPA Plan Resolution") wherein the City Council, in the environmental evaluation of said SPA Plan, relied in part on the Otay Ranch SPA Plan Final Environmental Impact Report No. 95-01, SCH # 95021012 ("FEIR 95-01 "), and; WHEREAS, this Project is a subsequent activity in the program of development environmentally evaluated under Program EIR 90-01, FEIR 95-01, and addendum thereto, that is virtually identical in all relevant respects, including lot size, lot numbers, lot configurations, transportation corridors, etc., to the project descriptions in said former environmental evaluations, and; WHEREAS, the City Environmental Review Coordinator has reviewed the proposed tentative map alternatives and determined that they are in substantia] conformance with the SPA Plan and the related environmental documents and that the proposed alternative tentative maps would not result in any new environmental effects that were not previously identified. nor would the proposed alternative tentative maps result in a substantial increase in severity in any environmental effects previously identified; therefore only an a Addendum to FEIR 95-01 is required in accordance with CEQA, and; WHEREAS. the Planning Commission held an advertised public hearing on the original tentative map application on July 10. ] 996. and another advertised public hearin!! on the Proiect on August 14.1996 at which time the Plannin!! Commission voted to: 0) recertify FEIR 95-01: (2) readopt the Statement of Overriding Considerations and the Mitigation Monitoring and Reportin!! Program: and (3) recommend that the City Council approve the Proiect in accordance with staff's recommendation and the findings and conditions listed below: and ViIIERE,\S, tRe PlaRRiRg COffiffiissioR reeeived aRd eORsidered all evideRee OR tRe reeord whieh supports the recoFAfAeRdatioA of denial of the proposed alterAative teAtntive fAaps other thaR staff's reeoffimeRdalioR, ElRd, WIIERE!.S, the PlflRRiRg CemmissioR ReId ElR aevertised pliBlie heariRg OR saie projeet OR Ilil)' 10, 1996 aRd reeertified FEIR 9501, '<,eled 10 recomR-leRd that the City COIJReil approve the TeR!ative Map iR flecersflRee with the fiRsiRgs fiRS ceRditiolls listed Below ails readopted the StatemeRt ef Overridillg CeRsideratiells aRe tRe Mitigati6R MORiteriRg aAd Reportillg Program, ~ WHEREAS, the City Council set the time and place for a hearing on said tentative subdivision map application and notice of said hearing, together with its purpose, was given by 2 its publication in a newspaper of general circulation in the City at least ten days prior to the hearing, and; WHEREAS, the " hearing was held at the time and place as advertised on August 6, 1996 and continued to August 20, 1996 in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing was thereafter closed. NOW, THEREFORE, THE CITY COUNCIL finds, determines and resolves as follows: SE.CTION 1. CEQA Finding re Previously Examined Effects The City Council hereby finds that the Project, as a later activity to that evaluated in the Program EIR 90-01, FEIR 95-01, and addendum thereto, would have no new effects that were not examined in the preceding Program EIR 90-01 and FEIR 95-01 (Guideline 15168 (c)(2)), and; SECTION 2. CEQA Finding re Project within Scope of Prior Program EIR The City Council hereby finds that: 1. there were no changes in the project from the Program EIR and the FEIR which would require revisions of said reports; 2. no substantial changes have occurred with respect to the circumstances under which the project is undertaken since the previous reports; 3. and no new information of substantial importance to the project has become available since the issuance and approval of the prior reports; and that, therefore, no new effects could occur or no new mitigation measures will be required in addition to those already in existence and made a condition for Project implementation. Therefore, the City Council approves the Project as an activity that is within the scope of the project covered by the Program EIR and FEIR, and, therefore, a second addendum has been prepared (Guideline 15168 (c)(2) and 15162 (a)), and; SECTION 3. Incorporation of All Feasible Mitigation Measures and Alternatives The City does hereby adopt and incorporate herein as conditions for all approvals herein granted all applicable mitigation measures and alternatives, if any, which it has determined, by the findings made in the GDP Resolution and the SPA Resolution, to be feasible in the approval of the General Development Plan and the SPA Plan, respectively, 1Ifl6t" SECTION 4. Notice with Later Activities The City Council does hereby give notice, to the extent required by law, that this Project 3 is an activity within the scope of the program approved earlier in the GDP Resolution and the SPA Plan Resolution, and the Final EIR adequately describes the activity for the purposes of CEQA (Guideline 15168 (e)). Notice was given on the EIR on June 4, 1996. SECTION 5. Ceneral Plan Findings Conf-ormanee to tAe Ceneral Plan Tentative Map Findings. A. Pursuant to Government Code Section 66473.5 ifl of the Subdivision Map Act, the City Council finds that the tentative subdivision map as conditioned herein for Otay Ranch SPA One, Chula Vista Tract 96-04, is in conformance with all the various elements of the City's General Plan, the Otay Ranch General Development Plan and Sectional Planning Area Plan based on the following: Ir.L Land Use - The Project is a planned community which provides a variety of land uses and residential densities ranging between 3.5 and 36.8 dwelling units per acre. The project is also consistent with General Plan policies related to grading and landforms. 1r.2. Circulation - All of the on-site and off-site public and private streets required to serve the subdivision consist of Circulation Element roads and local streets in locations required by said Element. The Applicant shall construct those facilities in accordance with City standards or pay in-lieu fees in accordance with the Transportation Development Impact Fee program. e-;-3. Housing - The Applicant is required to enter into an agreement with the City to provide and implement a low and moderate income program within the Project prior to the approval of any Final Map for the Project. 6-:4. Parks and Recreation Open Space. - The Project will provide a 25 acre (gross) community park, 44.1 acre (gross) neighborhood parks and the payment of PAD fees or additional improvements as approved by the Director of Parks and Recreation. In addition, a recreational trail system will be provided throughout the Project, ultimately connecting with other open space areas and trail systems in the region. e. Conservation and Open Space - The Project provides 235 acres of open space, 20% of the total 833 acres. A program to preserve 83 % of slopes greater than 25 % has been established ranch-wide and is detailed in the recirculated FEIR 95-01. ~ Conservation. The Program EIR and FEIR addressed the goals and policies of the Conservation Element of the General Plan and found development of this site to be consistent with these goals and policies. 4 f.-6. Seismic Safety - The proposed subdivision is in conformance wit the goals and policies of the Seismic Element of the General Plan for this site. No seismic faults have been identified in the vicinity of the Project. 't': 7. Public Safety - All public and private facilities are expected to be reachable within the threshold response times for fire and police services. Ir.~ Public Facilities - The Applicant will provide all on-site and off-site streets, sewers and water facilities necessary to serve this Project. The developer will also contribute to the Otay Water District's improvement requirements to provide terminal water storage for this Project as well as other major project in the eastern territories. i-02.., Noise - The Project will include noise attenuation walls as required by an acoustic study dated June 6, 1995 prepared for the Project. In addition, all units are required to meet the standards of the UBC with regard to acceptable interior noise levels. HO. Scenic Highway - The roadway design provides wide landscaped buffers along the two scenic highways, Telegraph Canyon Road and East Orange Avenue (Olympic Parkway). *'-.l.L Bicycle Routes - Bicycle paths are provided throughout the Project. 1-:12. Public Buildings - The Project provides three elementary school sites and one high school site to serve the area. One elementary school site and the high school site will be off-site of the project. The project will also be subject to Public Facilities Development Impact Fees. SECTION 6. S\:I6divisiofl Map f.ct FiAdiAgs B.A Balance of Housing Needs and Public Service Needs. Pursuant to Section 66412.3 of the Subdivision Map Act, the Council certifies that it has considered the effect of this approval on the housing needs of the region and has balanced those needs against the public service needs of the residents of the City and the available fiscal and environmental resources. The development will provide for a variety of housing types from single family detached homes to attached single-family and multiple- family housing and will provide low and moderate priced housing consistent with regional goals. 5 C.B Opportunities for Natural Heating and Cooling Incorporated. The configuration, orientation and topography of the site partially allows for the optimum siting of lots for passive or natural heating and cooling opportunities as required by Government Code Section 66473.1. D.G Finding re~ardjn~ Suitability for Residential Development. The site is physically suitab1e for residential development and the proposal conforms to all standards established by the City for such projects. E.!) The conditions herein imposed on the grant of permit or other entitlement herein contained is approximately proportional both in nature and extent to the impact created by the proposed development. SECTION +Q. Conditional Approval of Tentative Subdivision Map The City Council does hereby approve, subject to the following conditions, as Exhibit A attached hereto and incorporated herein by this reference, the Proiect. teAtative subdivisioA map for Otay RaAch SPA OAC, CAlI1a Vista Tract 96 01 SECTION 81. CEQA Findings of Fact. MitiIJation Monitoring Program and Statement of Overriding Considerations. a. Adoption of Second Addendum The City Council does hereby adopt the Second Addendum to the Final EIR 95- or b. Re-adoption of Findings of Fact The Council does hereby re-approve, accept as its own and re-incorporate, as if set forth full herein, and make each and everyone of the CEQt. Findings contained in the Findings of Fact. attached hereto as Attachment A known as Document No. C096-056 which is on file in the Office of the City Clerk. c. Certain Mitigation Measures Feasible and Re-adopted As more fully identified and set forth in the Program EIR and the FEIR and Addendum and in the CEQA Findings for this Project, which is hereby attached 6 hereto as Attachment A, the Council hereby finds that, pursuant to Public Resources Code Section 21081 and CEQA Guidelines Section 15091, the mitigation measures described in the above referenced documents are feasible and will become binding upon the !I!'Jpropriate eAtit} sllch as the Applicant and its successors in interest. and the City or other special districts whicA Aas to implement these specific mitigation measures. d. InfFeasibility of Alternatives As is also noted in the environmental documents referenced in the immediately preceding paragraph, alternatives to the Project, which were identified as potentially feasible, are hereby found not to be feasible. e. Readoption of Mitigation Monitoring and Reporting Program As required by the Public Resources Code Section 21081.6, City Council hereby re-adopts the Mitigation Monitoring and Reporting Program ("Program") set forth as Attachment B to this resolution known as Document No. C096-057. which is on file in the Office of the City Clerk aAe ineofj3orated hereiA B) refereRee as set forth iR ftill. The City Council finds that the Program is designed to ensure that, during the Project implementation and operation, the Applicant and other responsible parties implement the Project components and comply with the feasible mitigation measures identified in the Findings and in the Program. f. Statement of Overriding Considerations Even after the re-adoption of all feasible mitigation measures, and any feasible alternatives. certain significant or potentially significant environmental affects caused by the Project or cumulatively will remain. Therefore, the City Council of the City of Chula Vista re-issues, pursuant to CEQA Guidelines Section 15093, as set forth and attached hereto as Attachment C known as Document No. C096- 058 a CODY of which is on file in the Office of the City Clerk, a Statement of Overriding Considerations identifying the specific economic, social and other considerations that render the unavoidable significant adverse environmental effects still significant but acceptable. SECTION 9B.. Notice of Determination City Council directs the Environmental Review Coordinator to post a Notice of Determination and file the same with the County Clerk. 7 SECTION 9. Consequence of Failure of Conditions. If any of the foregoing conditions fail to occur. or if they are. by their terms. to be implemented and maintained over time. if any of such conditions fail to be so implemented and maintained according to their terms. the City shall have the right to revoke or modify all approvals herein granted. deny. revoke or further condition issuance of all future building permits issued under the authority of approvals herein granted. institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. SECTION 10. Invalidity: Automatic Revocation. It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term. provision and condition herein stated: and that in the event that anyone or more terms. provisions. or conditions are determined by a Court of competent iurisdiction to be invalid. illegal or unenforceable. this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. Presented by: Approved as to form by: G~~~ Ann Moore Acting City Attorney Gerald J. Jamriska Special Planning Projects Manager M:\home\anolTlcy\villag~ .1 Attachments: Exhibit A: Conditions of Approval Attachment A: Findings of Fact Attachment B: Mitigation Monitoring and Reporting Program Attachment C: Statement of Overriding Considerations Attachment D: Second Addendum to FEIR 8 r ij ATIACHMENT 2 VILLAGE I RESOLUTION No. 18398 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A REVISED TENTATIVE SUBDIVISION MAP FOR PORTIONS OF THE OTA Y RANCH SPA ONE, CHULA VISTA TRACT 96-04, AND MAKING THE NECESSARY FINDINGS, ADOPTING THE SECOND ADDENDUM TO AND RECERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT FEIR 95-01 (SCH #95021012) AND READOPTING THE STATEMENT OF OVERRIDING CONSIDERATIONS AND THE MITIGATION MONITORING AND REPORTING PROGRAM FOR THE FEIR AND DENYING APPROV AL OF AL TERNA TIVE TENTATIVE MAP PROPOSALS. WHEREAS, the property which is the subject matter of this resolution is identified and described on Chula Vista Tract 96-04 and is commonly known as Otay Ranch Sectional Planning Area (SPA) One ("Property"), and; WHEREAS, Village Development filed a duly verified application for the subdivision of the Property in the form of the tentative subdivision map known as Otay Ranch SPA One, Chula Vista Tract 96-04, with the Planning Department of the City of Chula Vista on December 6, 1995, ("Projeet:) and; WHEREAS, Village Development filed a revised tentative subdivision map on August 9, .1996, and; WHEREAS, 5ftffi the revised application requested the approval for the revised subdivision of approximately 822 acres located south of Telegraph Canyon Road between Paseo Ranchero and the future alignment of SR-125 into 3,729 residential lots, one lO-acre school site and one school site proposed for the area west of Paseo Ranchero, 26.5 acres of neighborhood parks and 18.5 acres of community purpose facility lots, and; WHEREAS, City staff has recommended that only the Village one portion of the proposed tentative map owned by Village Development ("Proiect") be recommended for approval, or iA the alterAative, tRe j3ertioAs of Village One svmee BY Village De\'elej3ffieAt aAd PRa3e 1 /\. sf Village Fi\'e Be a]3]3re\ed as more specifically set forth in the staff report, and; WHEREAS, the development of the Property has been the subject matter of a General Development Plan ("GDP") previously approved by the City Council on October 28, 1993 by Resolution No. 17298 and as amended on May 14, 1996 by Resolution No. 18285 ("GDP Resolution") wherein the City Council, in the environmental evaluation of said GDP, relied in part on the Otay Ranch General Development Plan, Environmental Impact Report No. 90-01, SCH #9010154 ("Program EIR 90-01 "), and; WHEREAS, the development of the Property has been the subject matter of a Sectional Planning Area Plan ("SPA Plan") previously approved by the City Council on June 4, 1996 by Resolution No. 18286 ("SPA Plan Resolution") wherein the City Council, in the environmental evaluation of said SPA Plan, relied in part on the Otay Ranch SPA Plan Final Environmental Impact Report No. 95-01, SCH # 95021012 ("FEIR 95-01 "), and; WHEREAS, this Project is a subsequent activity in the program of development environmentally evaluated under Program EIR 90-01, FEIR 95-01, and addendum thereto, that is virtually identical in all relevant respects, including lot size, lot numbers, lot configurations, transportation corridors, etc., to the project descriptions in said former environmental evaluations, and; WHEREAS, the City Environmental Review Coordinator has reviewed the proposed alternative tentative maps (including the Proiect's) and determined that they are in substantial conformance with the SPA Plan and the related environmental documents and that the proposed alternative tentative maps would not result in any new environmental effects that were not previously identified. nor would the proposed alternative tentative maps result in a substantial increase in severity in any environmental effects previously identified; therefore only an a Addendum to FEIR 95-01 is required in accordance with CEQA, and; WHEREAS. the Planning Commission held an advertised public hearing on the original tentative map application on July 10. 1996. and another advertised public hearing on the Proiect on Aue:ust 14.1996 at which time the Planning Commission voted to: (I) recertify FEIR 95-01: (2) readopt the Statement of Overridine: Considerations and the Mitigation Monitoring and ReDorting Program: and (3) recommend that the City Council aDDrove the Proiect in accordance with staff's recommendation and the findine:s and conditions listed below: and WIIERE.\S, the Planning COffiffiission received and considered all eviaenee on the record wlliell Sl:1pports tile recommendation of denial of tile proposed altemative tentative maps otRer thlm sl!lff's reeoffiffiendation, and, WIIEREf.S, tile Planning Commission lIeld an a<h'eftised pl:l61ie Rearing on said projeet on Al:1gust 11, 1996 ana recertified FEIR 95 01, votea to reeommend tllat tRe Cit)' Cal:1neil approve tRe Revised Tenffitive Map for onl) the Village One and Phase 1 A sf Village Five af the map and deny the proposed tentative map alternatives in aee6rdanee 'J. itll tRe findings and e6nditi6ns listed below and adopted tile Second .^.aaendl:1m to and reeertified tile fEIR 95 01 and reaaopted tile Sffilement of Overriaing Considerations and tile Mitigation Msnitoring and Reporting Prograffi; and 2 WHEREAS, the City Council set the time and place for a hearing on said tentative subdivision map application and notice of said hearing, together with its purpose, was given by its 'publication in a newspaper of general circulation in the City at least ten days prior to the hearing, and; WHEREAS, tfle i! hearing was held at the time and place as advertised on August 20, 1996 in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing was thereafter closed. NOW, THEREFORE, THE CITY COUNCIL finds, determines and resolves as follows: SECTION 1. CEQA Finding re Previously Examined Effects The City Council hereby finds that the Project, as a later activity to that evaluated in the Program EIR 90-01, FEIR 95-01, and addendum thereto, would have no new effects that were not examined in the preceding Program EIR 90-01 and FEIR 95-01 (Guideline 15168 (c)(2)), and; SECTION 2. CEQA Finding re Project within Scope of Prior Program EIR The City Council hereby finds that: I) there were no changes in the project from the Program EIR and the FEIR which would require revisions of said reports; 2) no substantial changes have occurred with respect to the circumstances under which the project is undertaken since the previous reports; 3) and no new information of substantial importance to the project has become available since the issuance and approval of the prior reports; and that, therefore, no new effects could occur or no new mitigation measures will be required in addition to those already in existence and made a condition for Project implementation. Therefore, the City Council approves the Project as an activity that is within the scope of the project covered by the Program EIR and FEIR, and, a second Addendum has been prepared(Guideline 15168 (c)(2) and 15162 (a)). SECTION 3. Incorporation of All Feasible Mitigation Measures and Alternatives The City does hereby readopt and incorporate herein as conditions for all approvals herein granted all applicable mitigation measures and alternatives, if any, which it has determined, by the findings made in the GDP Resolution and the SPA Resolution, to be feasible in the approval of the General Development Plan and the SPA Plan, respectively, and; SECTION 4. Notice with Later Activities The City Council does hereby give notice, to the extent required by law, that this Project is an activity within the scope of the program approved earlier in the GDP Resolution 3 and the SPA Plan Resolution, and the Final EIR with first and second addendums adequately describes the activity for the purposes of CEQA (Guideline 15168 (e)) Notice on the SPA EIR was given of June 4, 1996. SECTION 5. CCAcral PlaA FiAdiAgs COAformaAcc to tAc CCAcral PlaA Tentative Map Findinp. A. Pursuant to Government Code Section 66473.5 ffi of the Subdivision Map Act, the City Council finds that the revised tentative subdivision map for the Village Development's portion of Village One as conditioned herein for Otay Ranch SPA One, Chu]a Vista Tract 96-04, is in conformance with all the various elements of the City's General Plan, the Otay Ranch General Development Plan and Sectional Planning Area Plan based on the following: Ill. Land Use - The Project is a planned community which provides a variety of land uses and residential densities ranging between 3.5 and 36.8 dwe11ing units per acre. The project is also consistent with General Plan policies related to grading and landforms. 62. Circulation - All of the on-site and off-site public and private streets required to serve the subdivision consist of Circulation Element roads and local streets in locations required by said Element. The Applicant shall construct those facilities in accordance with City standards or pay in-lieu fees in accordance with the Transportation Development Impact Fee program. e;l. Housing - The Applicant is required to enter into an agreement with the City to provide and implement a low and moderate income program within the Project prior to the approval of any Final Map for the Project. eA. Parks and Recreation Open Space. - The Project wi1l provide a 25 acre (gross) community park, 44. I acre (gross) neighborhood parks and the payment of PAD fees or additional improvements as approved by the Director of Parks and Recreation. In addition, a recreational trail system will be provided throughout the Project, ultimately connecting with other open space areas and trail systems in the region. e. CSAscrvatioA aAd Open Space - The Project provides 116 acres of open space, 2] % of the total 556.54 acres recommended for approval. A program to preserve 83 % of slopes greater than 25 % has been established ranch- wide and is detailed in the recirculated FEIR 95-01. ~ Conservation. The Program EIR and FEIR addressed the !!oals and policies of the Conservation Element of the General Plan and found development of this site to be consistent with these goals and policies. f..6. Seismic Safety - The proposed subdivision is in conformance wit the goals and 4 policies of the Seismic Element of the General Plan for this site. No seismic faults have been identified in the vicinity of the Project. ~ 7. Public Safety - All public and private facilities are expected to be reachable within the threshold response times for fire and police services. 1r.-8. Public Facilities - The Applicant wi1l provide all on-site and off-site streets, sewers and water facilities necessary to serve this Project. The developer will also contribute to the Otay Water District's improvement requirements to provide terminal water storage for this Project as well as other major project in the eastern territories. h2,. Noise - The Project will include noise attenuation walls as required by an acoustic study dated June 6, 1995 prepared for the Project. In addition, all units are required to meet the standards of the UBC with regard to acceptable interior noise levels. j-,1O. Scenic Highway - The roadway design provides wide landscaped buffers along the two scenic highways, Telegraph Canyon Road and East Orange Avenue (Olympic Parkway). Ir.-ll... Bicycle Routes - Bicycle paths are provided throughout the Project. J-:.12. Public Buildings - The Project provides three elementary school sites and one high school site to serve the area. One elementary school site and the high school site will be off-site of the project. The project will also be subject to Public Facilities Development Impact Fees. SECTION 6. S\:lbdi';,isisn Map Act Findings ~fI. Balance of Housing Needs and Public Service Needs. Pursuant to Section 66412.3 of the Subdivision Map Act, the Council certifies that it has considered the effect of this approval on the housing needs of the region and has balanced those needs against the public service needs of the residents of the City and the available fiscal and environmental resources. The development wi1l provide for a variety of housing types from single family detached homes to attached single-family and multiple- family housing and wi1l provide low and moderate priced housing consistent with regional goals. Ce. Opportunities for Natural Heating and Cooling Incorporated. The configuration, orientation and topography of the site partially allows for the optimum 5 siting. of lots for passive or natural heating and cooling opportunities as required by Government Code Section 66473.1. De. Finding regarding Suitability for Residential Development. The Village One site is physically suitable for residential development and the proposal conforms to all standards established by the City for such projects. Ed. The conditions herein imposed on the grant of permit or other entitlement herein contained is approximately proportional both in nature and extent to the impact created by the proposed development. Section (H\. Tentative Map Findings In Support Of Denial Of The Tentative Map Alternatives Pursuant to Government Code Section 66474 (a) in the Subdivision Map Act, the revised tentative subdivision map for the portion of Village One and Five adjacent to the West Coast Land Fund collateral are denied for Otay Ranch SPA One, Chula Vista Tract 96- 04, as not being in conformance with all the various elements of the City's General Plan, the Otay Ranch General Development Plan and Sectional Planning Area Plan based on the following: a. Public Facilities West Coast Land Fund is in the process of foreclosing on 288 acres of Villages One and Five and have informed the City that they are not satisfied with the elementary school and neighborhood park location within the Specific Plan and revised tentative map. West Coast has indicated, when foreclosure is complete, they plan to initiate SPA amendments to relocate the school and parks locations. The relocation of the school and park sites may be on Village Development's portion of Village Five. Therefore, the revised tentative is denied for VilJage Five in order to maintain flexibility and orderly development in providing public facilities for schools and parks in Village Five. Pursuant to Government Code Section 66474 (b) in the Subdivision Map Act, the revised tentative subdivision map for the portion of Village One and Five adjacent to the West Coast Land Fund collateral are denied for Otay Ranch SPA One, Chula Vista Tract 96- 04, as not being consistent with the approved specific plan based on the following: b. Village Core The required public facilities and private services in the village core for Village Five are on the West Coast Land Funds collateral and may not be available when needed for the development of Village Five. 6 Pursuant to the City Code Section 18. 04.050 subdivisions are to be design with consideration to existing streets and the effect of the extension of said streets and alignment thereof in undeveloped land surrounding the subdivision. C. Streets The proposed subdivision does not adequately plan for the extension of public streets into adjacent residential area that are part of the West Coast Land Fund collateral. The tentative map proposes gated neighborhoods adjacent to the West Coast Land Fund collateral that is not part of the tentative map. City policy requires private streets in gated neighborhoods. Therefore public street access to the West Coast land Fund collateral is not provided in the proposed tentative map. SECTION 7. Conditional Approval of Tentative Subdivision Map The City Council does hereby approve, subject to the following conditions, as Exhibit A attached hereto and incorporated herein by this reference, the Proiect revised tentative subdivision map for only Village One of the Otay Ranch SPA One, Chula Vista Tract 96-04 and denies the approval of the tentative map alternatives which include other territory other than staff's proposed alternative B, based upon the findings and determinations on the record for the project. SECTION 8. CEQA Findings of Fact. Mitigation Monitoring Program and Statement of Overriding Considerations. a. Adoption of Second Addendum The City Council does hereby adopt the Second Addendum to the Final EIR 95- 01. b. Re-adoption of Findings of Fact. The Council does hereby re-approve, accept as its own and re-incorporate, as if set forth full herein, and make each and everyone of the CEQA Findings contained in the Findings of Fact. attached hereto as Attachment A known as Document No. C096-056 which is on file in the Office of the City Clerk. c. Certain Mitigation Measures Feasible and Re-adopted As more fully identified and set forth in the Program EIR and the FEIR and Addendum and in the CEQA Findings for this Project, which is hereby attached hereto as Attachment A, the Council hereby finds that, pursuant to Public Resources Code Section 21081 and CEQA Guidelines Section 15091, the 7 mitigation measures described in the above referenced documents are feasible and will become binding upon tRe appropriate eAtity sueR as the Applicant and its successors in interest. and, the City or other speda! districts ".!lic!l !las to implement these specific mitigation measures. d. InfFeasibility of Alternatives As is also noted in the environmental documents referenced in the immediately preceding paragraph, alternatives to the Project, which were identified as potentially feasible, are hereby found not to be feasible. e. Readoption of Mitigation Monitoring and Reporting Program As required by the Public Resources Code Section 21081.6, City Council hereby re-adopts the Mitigation Monitoring and Reporting Program ("Program") set forth as Attachment B to this resolution known as Document No. C096-057. which is on file in the Office of the City Clerk and iJ1corporatecl AcrciJ1 by ref-ercJ1cc as sct fortA iA ft-ill. The City Council finds that the Program is designed to ensure that, during the Project implementation and operation, the Applicant and other responsible parties implement the Project components and comply with the feasible mitigation measures identified in the Findings and in the Program. f. Statement of Overriding Considerations Even after the re-adoption of all feasible mitigation measures, and any feasible alternatives. certain significant or potentially significant environmental affects caused by the Project or cumulatively will remain. Therefore, the City Council of the City of Chula Vista re-issues, pursuant to CEQA Guidelines Section 15093, as set forth and attached hereto as Attachment C, known as Document No. C096- 058 a copy of which is on file in the Office of the City Clerk. a Statement of Overriding Considerations identifying the specific economic, social and other considerations that render the unavoidable significant adverse environmental effects still significant but acceptable. SECTION 9. Notice of Determination City Council directs the Environmental Review Coordinator to post a Notice of Determination and file the same with the County Clerk. SECTION 10. Consequence of Failure of Conditions. If any of the foregoing conditions fail to occur. or if they are. by their terms. to be implemented and maintained over time. if any of such conditions fail to be so 8 implemented and maintained according to their terms. the City shall have the right to revoke or modify all aoorovals herein granted. deny. revoke or further condition issuance of all future building permits issued under the authority of approvals herein granted. institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. SECTION II. Invalidity: Automatic Revocation. It is the intention of the City Council that its adoption of this Resolution is dependent upon the enforceability of each and every term. provision and condition herein stated: and that in the event that anyone or more terms. orovisions. or conditions are determined by a Court of comoetent iurisdiction to be invalid. illegal or unenforceable. this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. Presen ted by: Approved as to form by: ~, Y1A^~ Ann Moore Acting City Attorney Gerald J. Jamriska Special Planning Projects Manager M:\hom~\lInomey\vjllagr. 2 Attachments: Exhibit A: Conditions of Approval Attachment A: Findings of Fact Attachment B: Mitigation Monitoring and Reporting Program Attachment C: Statement of Overriding Considerations Attachment D: Second Addendum to FEIR 9 :1 Attachment 3 Village I and Phase I-A RESOLUTION No, 18398 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A REVISED TENTATIVE SUBDIVISION MAP FOR PORTIONS OF THE OT A Y RANCH SPA ONE, CHULA VISTA TRACT 96-04, AND MAKING THE NECESSARY FINDINGS, ADOPTING THE SECOND ADDENDUM TO AND RECERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT FEIR 95-01 (SCH #95021012) AND READOPTING THE STATEMENT OF OVERRIDING CONSIDERATIONS AND THE MITIGATION MONITORING AND REPORTING PROGRAM FOR THE FEIR AND DENYING APPROV AL OF AL TERN A TIVE TENT A TIVE MAP PROPOSALS, WHEREAS, the property which is the subject matter of this resolution is identified and described on Chula Vista Tract 96-04 and is commonly known as Otay Ranch Sectional Planning Area (SPA) One ("Property"), and; WHEREAS, Village Development filed a duly verified application for the subdivision of the Property in the form of the tentative subdivision map known as Otay Ranch SPA One, Chula Vista Tract 96-04, with the Planning Department of the City of Chula Vista on December 6, 1995 ("Projeet"), and; WHEREAS, Village Development filed a revised tentative subdivision map on August 9, 1996, and; WHEREAS, said application requested the approval for the revised subdivision of approximately 822 acres located south of Telegraph Canyon Road between Paseo Ranchero and the future alignment of SR-125 into 3,729 residential lots, one 10-acre school site and one school site proposed for the area west of Paseo Ranchero, 26.5 acres of neighborhood parks and 18.5 acres of community purpose facility lots, and; WHEREAS, City staff has recommended that only the Village ORe penioR of tAe l"ml"oscd ICRtativc ffiap OWRcd by Village DeveleprncRt ee reeoffiffieRded for appre', aI, er iR tAe altemativc, tAc portions of Village One owned by Village Development and Phase I-A of Village Five be approved as more specifically set forth in the staff report ("Proiect"), and; WHEREAS, the development of the Property has been the subject matter of a General Development Plan ("GDP") previously approved by the City Council on October 28, ]993 by Resolution No. 17298 and as amended on May 14, 1996 by Resolution No. 18285 ("GDp Resolution") wherein the City Council, in. the environmental evaluation of said GDP, relied in part on the Otay Ranch Genera] Development Plan, Environmental Impact Report No. 90-0], SCH #9010]54 ("Program EIR 90-01 "), and; WHEREAS, the development of the Property has been the subject matter of a Sectional Planning Area Plan ("SPA Plan") previously approved by the City Council on June 4, 1996 by Resolution No. 18286 ("SPA Plan Resolution") wherein the City Council, in the environmental evaluation of said SPA Plan, relied in part on the Otay Ranch SPA Plan Final Environmental Impact Report No. 95-01, SCH # 95021012 ("FEIR 95-0]"), and; WHEREAS, this Project is a subsequent activity in the program of development environmentally evaluated under Program EIR 90-01, and FEIR 95-01 and addendum thereto, that is virtually identical in al1 relevant respects, including lot size, lot numbers, lot configurations, transportation corridors, etc" to the project descriptions in said former environmental evaluations, and; WHEREAS, the City Environmental Review Coordinator has reviewed the proposed alternative Tentative Maps and determined that they are in substantial conformance with the SPA Plan and the related environmental documents and that the proposed alternative maps would not result in any new environmental effects that were not Dreviously identified. nor would the proDosed alternative tentative maps result in a substantial increase in severity in any environmental effects previously identified; therefore only an a Addendum to FEIR 95-0] is required in accordance with CEQA, and; . WHEREAS. the Planning. Commission held an advertised Dublic hearing on the oriJ?inal tentative maD application on July 10. 1996. and another advertised Dublic hearing on the Proiect on August 14. ]996 at which time the Planning Commission voted to: (1) recertify FEIR 95-01: (2) readopt the Statement of OverridinJ? Considerations and the Mitigation Monitoring and Reporting Program: and (3) recommend that the City Council approve the Proiect in accordance with staff's recommendation and the findin~s and conditions listed below: and 'NHEREAS, Ihe PlaAAiRg COfAffiissioR received aRE! eORsidered a1l evideRee OR Ihe reeard whieh stlrparts the reeomffieR8ation ef 8eRial ef the rfOresed alteTREltiw teRtRtive maps otAer thaR staff's reeammel18atieR, aAd, WHEREt.S, the PlaAAing CSfAITIissioA Aeld aA as'/crtised p\:l131ic AeariAg OA sais preject eA f.!lg\:lst 14, ]996 and reeertifie8 fEIR 95 01, veted to reeol1'llfleAd tAat tAe City C01;lAcil IIprreve the Re...ised TeAtative Mar fer eAl) the Vil1age ORC and Pf1a3e I ,'\ of 'lil1age fiYe of IAe mllp aA8 8eRY tAe prerosed tCRtatiye ffiar alternati\ es iR aeeordaAee \VitA tAe HRdiAgs aAd eORditioRs listee13els'I" aRS adertes tAe SeeoR8 AdseAduffi to aR8 recertified the FEIR 95 0] aRe readopted the SffiteffieAt ef O,'errisiAg COAsideratieAs and tAe MitigatieA MORitoriRg aRd ReportiRg Pragfllffi, aAd; 2 WHEREAS, the City Council set the time and place for a hearing on said tentative subdivision map application and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least ten days prior to the hearing, and; WHEREAS, the City Council received and considered all evidence on the record which supports the recommendation of denial of the proposed alternative tentative maps other than staff's recommendation, and, WHEREAS, the hearing was held at the time and place as advertised on August 20, 1996 in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing was thereafter closed. NOW, THEREFORE, THE CITY COUNCIL finds, determines and resolves as follows: SECTION I. CEQA Finding re Previously Examined Effects The City Council hereby finds that the Project, as a later activity to that evaluated in the Program EIR 90-01, FEIR 95-01, and addendum thereto. would have no new effects that were not examined in the preceding Program EIR 90-01 and FElR 95-01 (Guideline 15168 (c)(I)), and; SECTION 2. CEQA Finding re Project within Scope of Prior Program EIR The City Council hereby finds that: I) there were no changes in the project from the Program EIR and the FEIR which would require revisions of said reports; 2) no substantial changes have occurred with respect to the circumstances under which the project is undertaken since the previous reports; 3) and no new information of substantial importance to the project has become available since the issuance and approval of the prior reports; and that, therefore, no new effects could occur or no new mitigation measures will be required in addition to those already in existence and made a condition for Project implementation. Therefore, the City Council approves the Project as an activity that is within the scope of the project covered by the Program EIR and FEIR, and, therefore, an second addendum has been prepared (Guideline 15168 (c)(2)), and; SECTION 3. Incorporation of All Feasible Mitigation Measures and Alternatives The City does hereby adopt and incorporate herein as conditions for all approvals herein granted all applicable mitigation measures and alternatives, if any, which it has determined, by the findings made in the GDP Resolution and the SPA Resolution, to be feasible in the approval of the General Development Plan and the SPA Plan, respectively, and; 3 SECTION 4. Notice with Later Activities The City Council does hereby give notice, to the extent required by law, that this Project is an activity within the scope of the program approved earlier in the GDP Resolution and the SPA Plan Resolution, and the Final EIR with the second addendum adequately describes the activity for the purposes of CEQA (Guideline 15168 (e)). SECTION 5. CeHeral PlaR FiRdiHgs CORf-ormaRee to tAe CeHeral PlaR Tentative Map Findings. A. Pursuant to Government Code Section 66473.5 ffi of the Subdivision Map Act, the City Council finds that the tentative subdivision map as conditioned herein for Otay Ranch SPA One, Chula Vista Tract 96-04, is in conformance with all the various elements of the City's General Plan, the Otay Ranch General Development Plan and Sectional Planning Area Plan based on the following: al. Land Use - The Project is a planned community which provides a variety of land uses and residential densities ranging between 3.5 and 36.8 dwelling units per acre. The project is also consistent with General Plan policies related to grading and landforms. 132,. Circulation - All of the on-site and off-site public and private streets required to serve the subdivision consist of Circulation Element roads and local streets in locations required by said Element. The Applicant shall construct those facilities in accordance with City standards or pay in-lieu fees in accordance with the Transportation Development Impact Fee program. e1. Housing - The Applicant is required to enter into an agreement with the City to provide and implement a low and moderate income program within the Project prior to the approval of any Final Map for the Project. tl:!:. Parks and Recreation - The Project will provide a 25-acre (gross) community park, 26.5 acres (gross) of neighborhood parks and the payment of PAD fees or additional improvements as approved by the Director of Parks and Recreation. In addition, a recreational trail system will be provided throughout the Project, ultimately connecting with other open space areas and trail systems in the region. However, the neighborhood park site in Village Five may change. e. CORservatioR aOO Open Space - The Project as recommended for approval provides 122.7 acres of open space, 20 % of the total 608 acres. A program to preserve 83 % of slopes greater than 25 % has been established ranch-wide and is detailed in the recirculated FEIR 95-01. ~ Conservation. The Program EIR and FElR addressed the goals and policies of the Conservation Element of the General Plan and found development of this site 4 to be consistent with these goals and policies. fQ. Seismic Safety - No seismic faults have been identified in the vicinity of the Project. g1. Public Safety - All public and private facilities are expected to be reachable within the threshold response times for fire and police services. fi8. Public Facilities - The Applicant will provide all on-site and off-site streets, sewers and water facilities necessary to serve this Project. The developer will also contribute to the Otay Water District's improvement requirements to provide terminal water storage for this Project as well as other major project in the eastern territories. However, the elementary school site in Village Five may change. i2. Noise - The Project will inc1ude noise attenuation walls as required by an acoustic study dated June 6, 1995 prepared for the Project. In addition, all units are required to meet the standards of the UBC with regard to acceptable interior noise levels. j.li}. Scenic Highway - The roadway design provides wide landscaped buffers along the two scenic highways, Telegraph Canyon Road and East Orange A venue (Olympic Parkway). kil. Bicyc1e Routes - Bicyc1e paths are provided throughout the Project. 111. Public Buildings - The Project provides three elementary school sites and one high school site to serve the area. One elementary school site and the high school site will be off-site of the project. The project will also be subject to Public Facilities Development Impact Fees. SECTION 6. SI.-lbdivision Map .^.et Findings ~a. Balance of Housing Needs and Public Service Needs. Pursuant to Section 66412.3 of the Subdivision Map Act, the Council certifies that it has considered the effect of this approval on the housing needs of the region and has balanced those needs against the public service needs of the residents of the City and the available fiscal and environmental resources. The development will provide for a variety of housing types from single family detached homes to attached single-family and multiple- family housing and will provide low and moderate priced housing consistent with regional goals. Cb. Opportunities for Natural Heating and Cooling Incorporated. 5 The configuration, orientation and topography of the site partially allows for the optimum siting. of lots for passive or natura] heating and cooling opportunities as required by Government Code Section 66473.1. De. Finding re!!arding Suitability for Residential Development. The site is physically suitable for residential development and the proposal conforms to all standards established by the City for such projects. Ed. The conditions herein imposed on the grant of permit or other entitlement herein contained is approximately proportional both in nature and extent to the impact created by the proposed development. Section 6-A Tentative Map Findings In Support Of Denial Of The Tentative Map Alternatives Pursuant to Government Code Section 66474 (a) in the Subdivision Map Act, the revised tentative subdivision map for the portion of Village One and Five adjacent to the West Coast Land Fund collateral are denied for Otay Ranch SPA One, Chula Vista Tract 96- 04, as not being in conformance with all the various elements of the City's General Plan, the Otay Ranch General Development Plan and Sectional Planning Area Plan based on the following: a. Public Facilities West Coast Land Fund is in the process of foreclosing on 288 acres of Villages One and Five and have informed the City that they are not satisfied with the elementary school and neighborhood park location within the Specific Plan and revised tentative map. West Coast has indicated, when foreclosure is complete, they plan to initiate SPA amendments to relocate the school and parks locations. The relocation of the school and park sites may be on Village Development's portion of Village Five. Therefore, the revised tentative is denied for Village Five in order to maintain flexibility and orderly development in providing public facilities for schools and parks in Village Five. Pursuant to Government Code Section 66474 (b) in the Subdivision Map Act, the revised tentative subdivision map for the portion of Village One and Five adjacent to the West Coast Land Fund collateral are denied for Otay Ranch SPA One, Chula Vista Tract 96- 04, as not being consistent with the approved specific plan based on the following: b. Village Core The required public facilities and private services in the village core for Village Five are on the West Coast Land Funds collateral and may not be available when needed for the development of Village Five. 6 Pursuant to the City Code Section 18. 04.050 subdivisions are to be design with consideration to existing streets and the effect of the extension of said streets and alignment thereof in undeveloped land surrounding the subdivision. c. Streets The proposed subdivision does not adequately plan for the extension of public streets into adjacent residential area that are part of the West Coast Land Fund col1ateral. The tentative map proposes gated neighborhoods adjacent to the West Coast Land Fund collateral that is not part of the tentative map. City policy requires private streets in gated neighborhoods. Therefore public street access to the West Coast land Fund col1ateral is not provided in the proposed tentative map. SECTION 7. Conditional Approval of Tentative Subdivision Map The City Counci] does hereby approve, subject to the following conditions, as Exhibit A attached hereto and incOl:porated herein by this reference, the Proiect revised tentative subdivision map for only Village One and Phase I-A of the Otay Ranch SPA One, Chula Vista Tract 96-04 and denies the approval of the tentative map alternatives which include other territory other than staff's proposed Alternative B, based upon the findings and determinations on the record for the project. SECTION 8. CEQA Findings of Fact. Mitigation Monitoring Program and Statement of Overriding Considerations. a. Adoption of Second Addendum The City Council does hereby adopt the Second Addendum to the Final EIR 95- 01. b. Re-adoption of Findings of Fact. The Council does hereby re-approve, accept as its own and re-incorporate, as if set forth full herein, and make each and everyone of the CEQA Findings contained in the Findings of Act. attached hereto as Attachment A known as Document No. C096-056 which is on file in the Office of the City Clerk. c. Certain Mitigation Measures Feasible and Re-adopted As more fully identified and set forth in the Program EIR and the FEIR and Addendum and in the CEQA Findings for this Project, which is hereby attached hereto as Attachment A, the Council hereby finds that. pursuant to Public 7 Resources Code Section 21081 and CEQA Guidelines Section 15091, the mitigation measures described in the above referenced documents are feasible and will become binding upon the apfJrofJriate entity sHeh as the Applicant and its successors in interest. and the City or otl1er special districts vil1icl1 l1f1s to implement these specific mitigation measures. d. InfFeasibility of Alternatives As is also noted in the environmental documents referenced in the immediately preceding paragraph, alternatives to the Project, which were identified as potentially feasible, are hereby found not to be feasible. e. Readoption of Mitigation Monitoring and Reporting Program As required by the Public Resources Code Section 21081.6, City Council hereby re-adopts the Mitigation Monitoring and Reporting Program ("Program") set forth as Attachment B to this resolution known as Document C096-057. which is on file in the Office of the City Clerk aRa iReorporated l1ereiR by refercRce as set fortA iR flil!. The City Council finds that the Program is designed to ensure that, during the Project implementation and operation, the Applicant and other responsible parties implement the Project components and comply with the feasible mitigation measures identified in the Findings and in the Program. f. Statement of Overriding Considerations Even after the re-adoption of all feasible mitigation measures, and any feasible alternatives. certain significant or potentially significant environmental affects caused by the Project or cumulatively will remain. Therefore, the City Council of the City ofChula Vista re-issues, pursuant to CEQA Guidelines Section 15093, as set forth and attached hereto as Attachment C known as Document No. C096- 058. a copy of which is on file in the Office of the City Clerk, a Statement of Overriding Considerations identifying the specific economic, social and other considerations that render the unavoidable significant adverse environmental effects still significant but acceptable. SECTION 9. Notice of Determination City Council directs the Environmental Review Coordinator to post a Notice of Determination and file the same with the County Clerk. SECTION 10. Conseouence of Failure of Conditions. If any of the foregoing conditions fail to occur. or if they are. by their terms. to be implemented and maintained over time. if any of such conditions fail to be so 8 implemented and maintained according to their terms. the City shall have the right to revoke or modify all approvals herein granted. deny. revoke or further condition issuance of aH future building permits issued under the authority of aoorovals herein granted. institute and prosecute litigation to compel their compliance with said conditions or seek damages for their violation. SECTION 10. Invalidity: Automatic Revocation. It is the intention of the City Council that its adoption of this Resolution is dependent UDon the enforceability of each and every term. provision and condition herein stated: and that in the event that anyone or more terms. provisions. or conditions are determined by a Court of comoetent iurisdiction to be invalid. ilIe!!al or unenforceable. this resolution shaH be deemed to be automatically revoked and of no further force and effect ab initio. Presented by: Approved as to form by: Gerald J. Jamriska. AlCP Special Planning Projects Manager C'5v-- ~~'r--9-- Ann Moore Acting City Attorney M:\home\attomey\village.3 Attachments: Exhibit A: Conditions of Approval Attachment A: Findings of Fact Attachment B: Mitigation Monitoring and Reporting Program Attachment C: Statement of Overriding Considerations Attachment D: Second Addendum to FEIR 9 . - ~ - - - -, - ..-- :://}~~ Paul, Hastings, Janofsky & Walker LLP A LIMITE:J LiAB,U;Y J'AR"rNERSHIP INCLUDING F'F10F"ESS!ONAL CORPO:::..AiiON$ TWENTY.THIRD FLOOR 555 SOUTH FLOWER STREET LOS ANGELES, CALIFORNIA 90071 TELEPHONE (213) 683-6000 FACSIMILE (213) 627-0705 ( ~ , I (, t-. ", , , ) ./ CONFIDENTIAL RUSH x DATE: Aua 15, 1996 3: 09pm FROM: Michael Woodward DIRECT DIAL #: (2131 683-6103 ~ MSW ~ to: <DF: FACSIMILE #: to: OF: FACSIMIL.E #: to: @F: , FACSIMILE #: TO: <DF: FACSIMILE #: TO: OF: FACSIMILE #: GERALD JAMRISKA Otay Ranch Project Office 619 422-7690 SWITCHBOARD #: 619 422-7158 ROBERT LEITER, Planning Director City of Chula Vista 619 691-5171 SWITCHBOARD #: 619 691-5101 MAYOR AND CITY COUNCIL city of Chula vista 619 476-5379 SWITCHBOARD #: 619 691-5044 CITY PLANNING COMMISSION city of Chula vista 619 969-5171 SWITCHBOARD II: 619 691-5101 ANN MOORE, Assistant city Attorney City of Chula Vista 619 585-5612 SWITCHBOARD #: 619 691-5037 CLIENT NAME: Colonv - WOLF otav Ranch CUENT#: 21784.61555 THIS MeSSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENT/1Y TO WHICH rr IS ADDRESSED. AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPUCABl.E I AW I~ THE R"-ADER OF THIS MESSAG!: IS NOT THE INTENDED RECIPiENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE ~OR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT. YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PL~Ag; NOTIFY US; IMMEDIAT~LV QV"~LEj:)HONE, AND nETunN Tile: ORIGINA.L MESSAae io us AT THe: ABove ADDRESS VIA THE U.S. POSTAL SERVice. THANK YOU. Total numbcr of pogC$. including this cover sheet: J:# IF YOU DO NOT RECEIVE ALL PAGES. PLEASE CALL IMMEDIATELY FACSIM'.L.f: CENTER: (213) 683-5059 !:::'~.. _., ORIGINAL WILL FOLLOW VIA: ';" ,~ MESSAGE: FAx OPERATOR'S NAME: ',', DATE: TIME: .. ~. -".' ..-::.-""-..:-::-- ............ or-r,c:::<; ,~... P.-\UL. HAST!~GS. .J.\XOFSKY & V,ALKER LLP .. _ .'-E" .......,_._.,. ;..._~....._~..,.. ..,=~~:..., w_",~..~".,:,.... .~~",..::.....-,::o"," JOICIS!:.... .. ....9"..:;; :1~'C'1~.OJ ~c.......o:.. _t!II!:':) :00....1.. ,~E:O.....,::.O :: -'.....c,.~..... ::........~& '" ...........1;. 5~,5 SOV-rl F"'..~W~=> "STI=\e,::::i 3.J ::A"'$:~!: S". 5':'0::. I,ZC ':...... ...;:,....,;,$CO =~..,...oq"',.... ,...,C"'. ~o.:. -=:'E:OO~C"'!: .....!5: ........:=..7....,.~ L..05 ANGE!...ES. CAI..IFO~NI. $oo"I-~3"1 ".....C.SI'Io1.I..E ;2131 I!:'Z"'-O"'OS '2:~'3 OCi::~'" M."t;;NI".oC ~.."'..",Q. ...Q...'.::..... c:..._,...Q<:I"',.... ~~.....:::I,~.<:':'~ .::I..!:~"C",I( :}':::: J'9-JJCO -t~t:,sHON~ :;h~; ~a3-6000 e.oe 1O'~.::.","FlE:E: ST '" I!:.. ~"'e. .t...OO ;.;.,.:'.._..."'w.... C;EO~~'''' 3030e-i:.Z2 ,.E..........~..c: (404) a 5..:=...:>0 'N"'E:~"'E:T 'N""'W.~!'1I'" com u~.,. __=-. ..\3,.-=-... ~O,",,,,~v""'L,I ~.T~.'" ~ 0,",0 =:O.~...E:CT'.;V,. OO'ioCl"~~'" ":""r::..~....?...0!: !~Qj!: ~~;.~...OC j IIS~S "0",,1'1 CE...,.;:IIt Oq,v!: ;0$'1'.... MI:S". .;:......:...0......... ..ziI!Iao"O~... ; ,.c:..!!:~...O...C !71"'1 l!!i~e-c"'C:-O :l~a .......1'\ ..."O::,......!:. ....f:..... ...r"'I~.o;, NCW "'0"'1'1. 100.!.1!:-""'591 T'E._E.PI-ION~ 'Z'!~ 311!!H!COO August 15, 1996 ,\<::... "'OIOt, I!"_I_O'NG. 30~" ,.~.::C... '<!-.J<. ......__._..... ...,:.....o....c. ...'.......-0......., '1'0","'0 '07 ..;..~AN ':"'~...:;::P...c"'~ (03) 3507-073=: ,~";:'Q p~,......svL.VAN'. .Va:;N....r.:. N W ''I''.II.Sr-II'IGTON. 0'; lC~O"":;;"o~ TE:'E"''''C'''f; ;::CZ) ;;oe..~~OO _......e,..~ OI"C~'" ....=~.Q. c;:n..!I:I !""\L.C NO (213) 683-6103 21784.61555 VIA FACSI!ULE Mayor Shirley Horton Chula vista City council 276 Fourth Avenue Chula Vista, california 91910 Re: Otav Ranch Tentative MaD - Aua. 20 Aaenda Dear Mayor Horton and Honorable councilmembers: We are writing on behalf of West Coast Land Fund L.P. ("West Coast") in support. of lact night's unanimous decision of the Planning commission approving the SPA One tentative map for Village One and Phase 1A of Village Five, and denying a tentative map on the remainder of SPA one property. As several commissioners stated, this decision, whioh was ~ore than wha~ the staff and West Coast had proposed but less than what the Baldwins asked for, represents an appropriate compromise given the current circumstances. This decision also has the strong support. of the city Manager and the city Planning Department, as well as support from other departments. Given the status of the pending Bankruptcy Court proceedings, discussed below, West Coa~t believes that its long-delayed foreclosure sale will occur on or before Aug~st 23, 1996. Assuming that West Coast becomes the owner of the 1,034 acre Property in Otay Ranch, 2aa acres or which is located in the middle of SPA one, one of the options that it will pursue will hA ~n attempt to resolve its land use concerns with adjoining SPA One property owners and then participate in an appropriate city application and approval process. - - ' . ~. .. - - ..--- ---- --- Mayor Shirley Horton chula vista City Council August 15/ 1996 Page 2 Status of the Bankr\1nt.<"'v pyoceedinas As you may have been informed by your staff, on Thursday July 25, 1996, the Honorable Peter Bowie, united states Bankruptcy Judge, granted West Coast's motion for relief from the automatic stay to foreclose on 1/034 acres of property ("Property") owned by Tiger Development Two ("Tiger") in the middle of Tentative Map CVT 96-04 which is on your August 20th agenda. Specifically, Judge Bowia found that Tiger and the three engineering firms that filed the involuntary bankruptcy on February 8/ 1996, acted in bad faith. This rUling allows Wes~ coast to proceed with its long-delayed foreclosure sale of the Property, which is currently scheduled for Friday, August 16, 1996, but will probably be continued to Friday, August 23, 1996. Tiger appealed Judge Bowie's decision and on. two occasions, unsuccessfully sought an emergency stay of that decision while it pursues its appeal. Most recently, on August 13, 1996, the Honorable Irma Gonzalez, United States District Judge, denied Tiger's motion on the grounds that Tiger will not likely succeed on the merits of its appeal. (See Attachment 1) Tiger currently has an appeal pending before the Ninth circuit in San Francisco on Judge Gonzalez' order. It. that appeal 1s denied, it's next avenue would presumably lie with the united States Supreme Court. ~ustification for Plannina Commission Decision The city's own laws (the CDP and its PC zoning) require SP~ plans and villages to be planned and developed as a unit, under unified ownership or control. West coast has been denied that opportunity since February 8~h of ~his year by a bankruptcy filed in bad faith. Given this bad faith detex~ination and the relief from the automatic stay (which has now been upheld by two united states judges), the city cannot. continue to insist that a unity of ownership exists. 1'he August 2, 1996 Council Informational Memo contains a ,~hart that illustrates the disparate treatment that the Pr,operty is being subjected to in terms of the distributicI of land uses. Upholding the Planning commission'~; decision gives the City the flexibility to . .... .........."":.-....... . .-- ... "": ... Mayor Shir~<!>y Horton Chu~a vista City Counci~ August 15, 199-,; Page 3 address these issues in the future. That ability will be lost or severe~J i~paired if a tentative map on either side of the Property is approved. The sales and marketing plans of Otay Ranch L.P. for SPA One will not be materially affected. In a letter dated 3uly 23, 1996 by Jim Baldwin to Jimmy Johnson, the chief executive I;.fficer of the Chapter 11 estates of Baldwin Builder and Baldwin Building contractors, Mr. Baldwin states that otay Ranch L.P. proposes to sell or transfer a total of 1,332 single family lot areas for a total purchase price in excess of $51 million. (See Attachment 2) West Coast believes that the Commission's action strikes a balance that still allows otay Ranch L.P. to complete ever $38 million of these proposed sales within its proposed ~chedu1e (August 31 - October 31) plus develop the core area of Village One. The decision also allows west Coast the opportunity to complete its foreclosure sale and discuss wil:h Village Development a reallocation of uses and densities 10lhich could then be considered by the City. As noted abov'., the City's procedures require the owners within a SPA to pI'epare a unified proposal. West Coast would like the opport\lni ty to do so. 1'hank you for your consideration in this matter. very truly yours, I -. /lI1A. ~~CA..uf A- cUdIJ ~ ~ c( MichaelS. Woodward for PAUL, HASTINGS, JANOFSKY & WALKER LLP MSW:cm Enclosures cc: John G~ss, city Manager Robert A. Leiter, Director of Planning Gerald J. Jamriska, special Projects Manager Ann Mo-,re, Acting city Attorney Ed DaiJey, colony Advisors -- .. -- -- '? ~'): 0.&. l..t g6 ..lq=::D OS ~i' F.\J 81 ;155780.J2 l"S?C SOD I ST FU i C~ERIC. U.S. DISTRICT COURT ! SOUTJof!RN DI$T1IICT OF (AUFORNI..:'. I IT O"DUTY: lOOTED STATES DISTRICT COURT 1 ~ j 4 5 FILED AU; I 3 e:E 6 SOVTHERN DISTRICT OF CALIFORNIA 7 s 9 10 11 111 ItB 12 '1'IOp. gZ"TILOl'KDlT no, . California Limi~ed p.~~u.r.hip, 13 De!:ltor ud 14 D~~or-~-~o.....ioD 15 waST COAST LAND F~, L.P., 16 xovaat, 17 v. 18 TIOD DEV".lLOPJUiiI"t no, _n_.g', 19 .ay INC., KU!f.:A.XD i USOCIATI8 IU DIEGO, I1Ie., Bt1JtTOIJ 20 AS8OCl'AU8 LUD'On, UCHU'BCTU.. I PLJ.1QJIJIG, Plaa'!' 21 UDJ:Cd '1'ITL!: IJI8~B COMl'UT , 22 . .aspond.llt.. 23 ) ca.. ~r 9'~1370-IBQ ) ) ORDD DmRIaIG 1)OToa', ) DPGUCY 110'1':[011 J'OK ) ''fAT PDt);!:.G UiB:AL U1) DDYlJiQ ) AS XOOT DBIITOR'I ZKUGDCY ) .O!!:rox ~ AIr EUGU'BJ) ) BRl'BJ'l'1IG SCJ[ZDaLB ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) 24 25 BACXC30tnID 26 On july 26, 1~96. the United stat.. Bankruptcy Court for the 27 souther~ District of Calitornia granted 6acur.~ creditor Wast 28 Coast Land 1'"Und, L.P. ("WCLr-) relioa! from the automatic IOtay in A_..~../"'rj,_ ~~. - "': - -~. . .: "': -- 03. 1~'9~ ~E~ 0' :7 FA~ G13~~~OOJ: rSDC SOD! ST FU ~ ~OJ 1 the Chapt~r 11 bAnkruptcy proceeding of aebtor Tiger Development 2 Two. specifically, the court found that debtor and petitioning 3 creditors Hunsa~.r , Associates, Burton Associates Landsoapm, 4 Architecture' Planning, and Dexter S. Wilson Engineering acted in ! bad faith by improperly tiling an involuntary bankruptcy 6 prooeeding, simply to allow the debtor's managor5 to evade 7 liability on their personal guaranty of the $25,000,000 note I I 8 executed in favor ot WCLT. Thus, by granting WCLF relief from the , automatic stay for cause under 11 D.S.C. S 362(d)(1), the Court 10 permitted WCLl to for.close its first priority lien on 1,034.26 11 aores o~ land debtor owns in otay Ranch, San Die~o, Californi.. 12 WCLF's foreclosure sale was scheduled for Monday Auqust 12, 19'5. 13 On AUgust 2, 1996, debtor fil.d a notic. of appeal frolll the 14 bankruptcy court's July 26, 1996 order, and .lQc~Qd to havQ the 15 appeal decided by the United state. Di.trict Court tor the 16 Southern District of California. On the same day, debtor filed 17 with the bankruptcy court an emerqency Illation for a .tay of 18 executiQn pending appeal pursuant to Bankruptcy Rule 8005. 19 Pe~i~ionin9 creditors joined debtor'. emerqency motion. The 20 parties essentially 50ught a thirty to torty-tive day stay to 21 allow an expedited appeal of the bankruptcy court's order grantin9 22 WCLl relief from the automatic stay. 23 On AU9Ust 7, 1996, debtor's appeal was transferred to this 24 Court and assigned to the Honorable Irma E. Gonzale~. Also on 25 Auqust 1, 1996, debtor tiled with this Court a second identical 26 emergency motion tor stay pending appeal, and sought an imm_aiat. 27 haarinq before this Court. Instead, this Court issued an order 28 denying dobtor's emergency ~otion as procedurally improper und~r -z- -:.-.......-:-:-- --- 0-9- 14 96 I,":~D .15; ~S rAX 619SS':"SOJ: ~.SD(, saDIST I='L5 2:oo~ . 1 5ankruptcy Rule 8005. specifically, the Court instructea debtor I 2 to renew 1ts request a!ter the bankruptcy ccu~ heard and decided I ) debtor's original emerqlncy motion. 4 The bankruptcy court hald a hearinq on debtor's fir~t 5 emerqency motion on Auqust 8, 1996. Atter reviewing the 6 voluminous record and entertainins lengthy oral argument, 7 Bankruptcy Judse Peter W. Bowie denied debtor and the petitioning I i S creditors the relief they requested. At the haaring, Judge Bowie' 9 explained: I have to tell you that atter QU4 last hearing [on WCLF's motion tor relief trom stay] I went back and reread most o~ the stuff, in part because or the vehemence of the argu=ents, and I have to tell you that I'm more convinced than ever that this was a carefully choroo9rap.~od or orchestrated bad faith tilinq... I do not accept that as a standard tor participation in the I ~ankruptcy proc... that you can act ~.ltciou51y, that you ca~ act collusively, ana ao long as you've got a colorable claim! of authority under the coda to do it, the ~orality of the : act or i~orality of the act goes out the window... 10 11 ...~ 13 14 l' 16 11 I'm not goir:,g to qrant a 30 to 45 clay stay Pecause, among other things, it's ~y view that ea) the debtor will not ~r.vail on the ~erit. [and] (b) qrantinq th4t kind ot stay ~s, 1n ettect, qranting the debtor the kind ot relief they ,ought when tbay cOllusively caus.d thi_ bankruptcy to be tiled in the first place, which (was to] delay... [and) p,stpone havi~~ to deal with the lender creditor on this ~\\tter . 18 19 20 Motiol 21 (Transc.dpt of August 8, 1996 Hearing on Debtor's Emergancy 22 tor Rellef from Stay, pp. 41,43,50-51). Judge Bowie 010, 2) howevler. issue a tamporary etay ot .even clays to allow the debtor 24 to ar~ue its second emerqoncy motion for stay ponding appeal 25 before this Court. 26 Or' A\lqust 9, 1996, this Court ordered debt Dr to advise the I ' I n Court ~.'Gther by its second amarqency motion it ~ou9ht appellate I 26 review ".'f JUdge BOwie's denia.l of a stay pending appeal, or rather -3- OS' 14. ge wED 08.:5 FAX 61355760J: rSDC SC'D I ST FU i i ~ 005 II . 1 an indepelrdent deterJD!nat!on pur:ouant to Rule 8005.1' Debtor 4 noti!iec1 t.ne cour~ tha~ it int'ilnQQd tllQ latter. In 4ddition, 3 dCl~tor seCl.lts an order setting al1 expedited briefing schedule and 15chadulinq a hearing on debtor's appeal en or about Auqullt 21, 4 5 199\i. 6 pUrsuant to Local ~u~. 7.1(d)(1), the Court tin4s ~oth 7 Motions suitable tor decision without oral argument. 8 , nI8CV8'I~ ! Bankruptc1' ~ule 8005 provides that a party must first pr8senJ I ill motion tOl: .t.sy o! a judqment, order, or cleere. of the ! I banJcruptcy c;:ourl: to the banJtruptc:y juc2qe, ])ut, upon denial ot the I I motion, may tilt< the lIIotion with the district court. Whether to i qrant a stay pending appeal i. left to the district court'. I di.c;:..tion. Yn re Arnold. eOG F.24 937, 939 (9~ ci~. 1985). [ Whi1!1 the power to maintain the status quo pend in; appeal "'should alwa1"s be exerci..d when any irr_ediable injury uy result fr01ll ! the effect ot the decree as rendered,' ~oth federal and calitorni~ C;:O~lt hold that '. . . this power $boule! be .parin91y "~ployec! an4 I r...rYl,d for the e)(ceptional situation.'" In r. WVTIIer, 5 B.R. 802, 804 (BU> 9th c:ir. 1980) (citations omitted). An appellant s..king discretionary stay pendin9 appeal undel:' Dankrupt.q RulOll 800S lIIust; (1) ~ake a showing that it is likely to succeeo on tho merits ot the appeal; 9 lO 11 12 13 14 15 16 17 18 19 20 21 i:i: 23 24 25 26 V ~u1e S005 is in par~ an adaptation ot Federal Rule ot App.llat Proc.du:~e 8 (a), which allows the court ot appeals to entertain a 27 motion :or relief from stay onco the trial court has denied a s1m1lar appllca~10n. ~ Ba~. Rul~ 800S Adv. Coma. Note; 2S Fed.R.A.'p.P. 8(a). -4- 08 l~ ga ~ED a~ 1~ ~~X el~$5~6nJ2 rSDC SCDIST FU <1: 006 i . 1 (2) demonstratu that it will suffer irreparable injury it the stay is nQt granted; 2 3 (3) prove that the issuance of the stay would not substantially harm the other parties; and (4) establish that a stay pending appeal yould surve the public interact. 4 5 6 ~. (citins Schwartz v. Covinqton, ~41 Y.Zd 537, 531-39 (9~^ cir. 7 1965)). a After raviewinq the memoranda, declaration.. deposition 9 transcripts, and uxhibit. filed in support of and in opposition t~ 10 debtor'. .~ergency ~otions, and considcrinq the transcript8'fro~ 11 thQ banJtruptc:y court 2:'u11no;. qranting' WCLl'" relief fro~ 'the i 12 automatic stay and denying debtor a thirty to forty-five day stayi I 13 pending' appeal, the Court finds tbat debtor has failed to make an! i 14 adequate showing tha~ ~e to~ e~umerated tactors wei9h in favor i I 15 ot i&&uinq a stay pending' appeal. 16 Debtor has made .ome showinq that it .ay be irreparably 17 harmed it a stay i8 not irantea; it has arqued, ror ex~ple, that 18 the colla~.r.l p~ope~y is nece..arily unique, and ~ha~ debtor 19 will lose its opportunity to have this Court consider its appeal.' 20 Hoy.ver, the Court aqrees yith Judge Bowie's Auqust 8, 1996 21 !i~dinq that debtor has failed to daaonstrate a likelihood of 22 prevailinq on appeal. Sp~citically, after careful review of ~h. 23 submitted papers, the court finds that debtor is unlikely to 24 succeed in its challenge to the bankruptcy court'. determination 25 that the totality of the circumstance. surrounding tho involuntary Z6 b.nkr~p~cy ri1in~ ovidoncQ bad faith and ~on5titute ca~s. for 27 relief fro~ the automatic stay, partly because that determination 28 -5- - - - - ~ -'.. - - - -.. . . .. . - . 0:5 1~.90 wED os ~9 F~X SlO$!7&OJ2 l'SDC SOD I S1 FL5 ~ 097 1 is largely aepenaent on factual findingsV subject to a 2 dererential, clearly erroneous standard or review. ~ In ~e 3 Marsch, 36 F.3d 825, 828 (9th cir. 1994); In re Sarrett, 964 '.2d 4 S8a, 591 (6th Cir. 1992); In the Matter or Little Creek 5 Develo~ment Co., 779 F.2~ 1068, 1073 (5th C1r. 1986). The Court 6 finds persuasive Ule factual findings and analysis of the bankruptcy court in denying debtor's first eMergency motion, and I I concludes that debtor will not likely succeed on the merits of it$ appeal. I I 7 8 9 10 Accordinqly, the Cour~ herab7 D~B. debtor's ea.r~.ncr I motion for stay pendinq appeal. Because the need for an expedited I I briefinq schedule no longer appears necessary, the Court >>"IZ' that request AS )lOOT. 11 12 13 14 %~ %. .0 ORD~. 15 16 l).teCS: a\l~ I J mS IRMA E. GONZAlEZ %JUIa Z. r:mrzAL.. 1hti1:ed .tat;.. Dbtrioi: o7IIdi'. 17 18 19 20 Z1 22 23 24 25 ~ When determining the 9004 faith of . debtor's filing, a court should take into account the totali~y o~ the circumstances. Do~.v savinas B~~ Loan Assoc. v. M.~~, 820 F.~d 1495, ~4g8 (9th Cir. 1987). Indeea, the Ninth Circuit has specitically aqreed that f1ndi~q a lack of 900d taith depends upon an ama19am or racts, and that once such a r~ndinq is made, it 1. cau.. to qrant relief from the automatic star. In re Arnold, 806 F.2d at 939. -6- 26 27 28 ~-~- O~ lJ ~g ~~J C~ JQ ~~I 61gS5-80J~ l SQC SOD I ST FU 2:::c ~ 1 Ccpi.. di.tributedJtaxed tOI 2 JEFYREY W. BRO~ER SEAN A. O'KEEFE 3 BROXFR. O'KEEFE 4 695 KAC ARTHUR COURT. T'HELFTH FLOOR 4 NEWPORT BEACH, CA 92660 5 CLENN D. DASSOFY GARY P. TOAAELL 6 GWENETH A. CAKP5ELL FAVL. HASTINGS, JANOFSKY , wALKER 7 TWENTY-THIRD FLOOR 555 soUTH FLOWER SorRE!:T 8 LOS ANGELES, CA 90071-2371 9 PAUL 3. COUCHOT p~~ W. LIANIDES 10 DO~T GOOSS~5 WINTRHOP COUCHOT P~OfESSIONAL CORPORATION 11 3 CIVIC PLAZA, SUITE 280 NEWPO~T BEACH. CA 92660 12 13 14 15 16 17 16 19 20 21 22 23 24 25 26 27 28 -7- ~ '- . - .......... - -:. --. - - : -:_- I j ~D 13,lZ f,U ~O~He.jO),- . '~_~I,.,~\"""""", ~t, 0- "-OQ , ( t"'<ITUJ PROCESS SERYERS ~ a2S .u .",. ,an':' r'Ur.JKr IX..1~~U@ru \ t. "IIIID~ry;; '[/10 ( . OTAY, RANCH, LaP. 3e8 s., M9* DrIve, SUi_ 375 NII.k1= ,J, t hId'I, CiA 92eeO eH - f8X 644-785$ 1\!IIY~. 1996 . ~nW1NBUILDERS Alan: >>, JIm ZabnIoa IMl1 Halo AWDJI ~CA~11" .. F'..II"" Tr.II'!r at..+.~ bJ oea, "~t 1.... 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Re.\Ii..se..D ~-I G,,- q (., ATTACHMENT 1 POLICE IJ\UIATED TOWING RATES IN SAN DIEGO COUNTY San Diego E1 Cajon Natioual Escondido Survey Cbula Vista Chula Vista Service City Average Current Proposed Basic Tow $72. 00 $55.00 $75.00 $75.00 $69.25 $55.00 $70.00 Mileage $2.50 $2.50 $2.50 $0.00 $1.88 $2.50 $2.50 Labor $40.00 $40.00 $00.00 $40.00 $30.00 $24.00 $30.00 Storage Hour $4.00 $2.00 $2.00 $2.00 $2.50 $1.50 $2.50 Storage $15.00 $12.00 $12.00 $15.00 $13.50 $12.00 $15.00 MaxlDay PM Release $28.00 no service $28.00 $35.00 $30.33 $25.00 $30.00 Heavy Tow $125.00 no servIce $125.00 $120.00 $123.33 $120.00 $125.00 A verage Cost $98.00 $79.50 $87.00 $100.00 $90.41 $71.00 $93.00 Referral Fee $17-35 no no no nla no $18.00 Incl uded in Tow Rate Note: Due to variance in the application of ancillary charges, it is difficult to accurately compare one jurisdiction's rate schedule with another. Such ancillary charges interact with the basic rate to create the tow operator's revenue stream. For example: in Chula Vista, mileage charges accrue only after the first mile; in San Diego and National City, mileage charges accrue after five miles; El Cajon charges for all mileage; and, in Escondido there is no charge for mileage. Additionally, National City does not have a labor rate which skews the average labor rate reported. /7 (3-3 ~~~ ~ ,,~~~ ......"'"~...... CA (/ UL"11L ' ClW Of CHUlA VISTA OFFICE OF THE CITY MANAGER NEWS RELEASE JeCQN.IACifu."blic Information Coordinator, 691-5296 Juan Arroyo, Housing Coordinator 691-5722 For Immediate Release: August 19, 1996 STATE FUNDING APPROVED FOR CHULA VISTA VETERANS HOME State funding has been approved for the construction of a $32 million Veterans Home in Chula Vista. Two bills appropriating the funds, one authored by Sen. Steve Peace and the other by Assemblyman Pete Knight. were signed into law Saturday by Gov. Pete Wilson. Chula Vista Mayor Shirley Horton praised local legislators, veterans and members of the community who led this successful three-year effort. "Senator Peace was determined and tireless on this issue," she said. "Coupled with the full support of Assemblymembers Denise Ducheny and Steve Baldwin as well as local veterans groups, this regional facility has passed a major milestone." The Chula Vista facility will be a 400-bed, multi-care facility on a site adjacent to Sharp Chula Vista Medical Center off Telegraph Canyon Road. This site was chosen to take advantage of its proximity to nearby hospital facilities and to provide housing to San Diego County's population of more than 300,000 veterans as well as the more than 400,000 veterans residing in Imperial, Riverside and Orange counties. The project is expected to bring an additional 200 to 300 new jobs to the area. A two-year study by the Governor's Task Force on a Southern California Veterans Home resulted --MORE-- 276 FOURTH AVENUE' CHULA VISTA' CALIFORNIA 91910 . (619) 691-5031 @ .....c--~"- 2-2-2-STATE FUNDING APPROVED FOR VETERANS HOME in a unanimous recommendation in favor of the Chula Vista location. In selecting Chula Vista, the commission highlighted the site's proximity to acute health care facilities, and the area's wide range of commercial, recreational and cultural services that would be available to residents of the facility. "This is a tremendous opportunity for our city and the veterans community --- one which wouldn't have happened without many different forces coming together," Horton said. "Veterans like Chula Vista's own Bill Ayers, Gus Hermes and Robert McCauley, and Dan Kreyling from San Diego were key to this success. The Sweetwater Union High School District also played an important role by making the proposed site available adjacent to Sharp's Chula Vista location." The City of Chula Vista's Veterans Advisory Commission, the San Diego United Veterans Council and the San Diego County Veterans Advisory Committee are among the groups that have joined the city in pursuit of this veterans facility. The $12 million state funding for the new facility represents a one-third match to federal grant funds. Application for the $20 million federal funding has already been submitted to the U.S. Department of Veterans Affairs by the State Department of Veterans Affairs. Once the federal funds are secured, construction could begin as early as April 1997. Currently, the state has two veterans homes -- one located in Y ountville in Northern California and another recently built in Barstow. The Chula Vista Veterans Home will be the first located in a coastal, urban setting. ---30--- CITY OF CHULA VISTA axJNCIL AGENDA STA1EMENT IDLE: Item /~ Meeting Date 8\20\96 T> 1 . 18''''a '/r'M .. 1 P 11' Pr . 1. .l'-eso utlon a optmg uruclpa 0 utlOn eventlOn Po ICY, recommendations and Best Management Practices to reduce the use of toxic materials in the City's operation as identified in this policy SUBMIIUlJ BY: Barbara Bamberger, Environmental Resource Manag~ ~'::3. ~ /1'- REVIEWED BY: John D. Goss, City Manager ).-',J 1 \) (4/5ths Vote: Yes_ No....L) The Environmental Health Coalition (EHC) and the City of Chula Vista worked jointly on a multi-year Municipal Pollution Prevention project, starting in July of 1993 and ending in July of 1995. The project was funded by a $30,000 grant to EHC from the Jesse Smith Noyes Foundation. The goals of the project were to (a) audit the use of toxic products in city public places and city work areas, (b) reduce the use of toxic materials used in City operations, and (c) to create a model for other cities to follow. This report, prepared by EHC, is the culmination of that work, and contains findings and recommendations for changes in city practices resulting from the audit. The report is attached for Council's information and background. BOARD/mMMISSION RECOMMENDATIONS: nla RECXJMMENDATION: Approve recommendations as follows: 1. Adopt a fonnaI Pollution Prevention Policy to institutionalize the progress already made and provide for continuing reduction in the City's use and release of toxic materials and adopt Best Management Prnctices developed in the pilot program and listed in Section 2.0 on pages 8-15 of this report. 2 Develop a purchasing criteria and policy for products that contain toxic materials. The criteria shall take into account environmental and public health criteria, and emphasize a switch of products from those previously purchased to nontoxic or least toxic alternatives where reasonable, and to include this criteria in consultants contracts, requests for proposals, and landscape & maintenance contracts and bid packages. 3. Reduce the use of pesticides. specifically materials identified for phase-out and those used by city contractors. Alternatives are available for most uses. Where alternatives exist, staff recommend that the use of two formulations of '2,4-D' be discontinued and the following pesticides targeted for reduction to the lowest possible level and eventual phase-out: Dursban, Diazinon, Torus 2E, and Tempo and reduce the Oty's use of harsh maintenance materials. where appropriate and adopt 'safer substitute' recommendations listed on page 61-67. /~"l Page 2, Item Date 8120/96. 4. Reduce gasoline utilization, where feasible, via expansion of replacement vehicles in the fleet using altemative fuels. To date, the natural gas replacement vehicles have reduced gasoline costs for the City. 5. Develop a trnckiJ1g form and process. as fea<>ible. so quantities and costs of materials targeted for use-reduction or phase-out can be easily accOlmted for on an annual basis by fiscal year. BACKGROUND: The Following is a synopsis of the Environmental Health Coalition's Report: I. General Overview and Information "Pollution prevention" can be defmed as "changes in processes or materials that reduce, avoid, or eliminate the use of toxic or hazardous substances or generation of hazardous by-products. It seeks to reduce the quantity and toxicity of materials going into processes, not just those coming out as hazardous wastes." The purpose of the partnership between the City and the Environmental Health Coalition was to improve environmental health by facilitating a shift toward pollution prevention as a means of managing toxic and hazardous materials. There has been much effort at the manufacturing and household levels over the past decade to reduce the use and disposal of toxics. There are still vast numbers of small businesses, offices, and municipalities where toxics --- in the form of pesticides, herbicides, cleaning, pest control, building and fleet maintenance, and other operations are used on a daily basis. Because people work and visit these places; their health and well-being may be affected by the workplace environment. Government agencies are in a position to provide leadership for their communities, by example and by procurement of less-toxic materials and services rrom private business; thus pointing to the opportunity of becoming a leader in pollution prevention. The benefits of toxic use reduction for cities include: . A safer, healthier work environment for employees and the visiting public; . Improved indoor air quality for staff and public; . More economical cleaning and pest control; . A contribution towards improved environmental quality; . Reduced regulatory burden; . Encouraging the growth of businesses which provide least toxic pest control, cleaning services, and products. II. ERC and ERC Contract It.. ,2., Page 3, Item Date 8/20/96. ERC is a San Diego-based non-profit environmental education and advocacy group, founded in 1980. The Coalition is dedicated to the prevention and cleanup of toxic pollution that threatens human health and the environment. In 1993, ERC obtained grant fimding to conduct an audit and develop a pollution prevention policy on behalf of a municipality. The City contracted with ERC to accomplish the following scope of work: 1. An audit of toxic materials currently used for City operations; 2. A pilot project to implement less toxic pest control and cleaning methods at one City facility on a trial basis; 3. Development of Best Management Practices for City operations for which alternative products or processes could be identified. (A) Audit 1. Program Process The City and ERC conducted an extensive audit to determine which materials are being used. This was done through a series of interviews with departmental supervisors and by examination of information provided by the Purchasing Division to verifY amounts and costs of materials purchased in one year. In most cases, the data was clearly available. Where records were not available, the cost and quantity is based on departmental estimates. A database was created which can be made available should Council wish to review it. 2. Staff Resources The following departments participated in the process: Environmental Resources Management, Public Works; Parks and Recreation, Purchasing, Risk Management, Fire. Central Stores. (B) Pilot Project An 8-week pilot project was conducted at the Parkway Complex to evaluate pest control and cleaning methods and products. It was anticipated that alternatives which proved to be workable and acceptable to staff during the pilot project could be implemented on a citywide basis. Parkway Memorial Recreation Center was the site used for the pilot project. Building pest control, landscape pest control. and cleaning staff met with ERC staff and discuss the alternatives to be tried. Each of the three groups kept ongoing records with weeldy notations on what worked and what didn't. Information and results were communicated between supervisor and line staff to get input and suggestions. /J-J Page 4, Item Date 8/20/96. (C) Best Management Practices Phase III of the Municipal Pollution Prevention Program (MPPP) consisted of development of Best Management Practices (BMPs) for City operations. BMPs are defmed as any program, process, technology, or operating method that prevents or reduces pollution. BMPs is a tenn used frequently in clean water laws and regulations. The EP A defmes BMPs as follows: "Schedules of activities, pmhibitions of practices. maintenance pmcedures. and other management practices to prevent or reduce the pollution of 'waters of the United States. ' BMPs also include treatment requirements. operoting pmcedures, and pmctices to contJVl plant site runoff, spillage or leaks, sludge or waste disposal, or drainage fmm raw material storage. ,,] BMPs developed for the City's MPPP incorporates results from the Pilot Project. These BMPs are listed from pages 13-22 in the report. Additional BMPs have been developed by the Engineering Department to fulfill the City's obligations for the Stonnwater Pennit program as required by the Clean Water Act. These MPPPs are not part of that Permit process but complement and enhance the work being done by the Engineering Department. Technical Ovetsight Boanl: A Technical Advisory Board was developed to oversee the project and provide comments on the fmdings and recommendations. 1his technical committee included: Dr. Ruth Heifetz of the UCSD School of Medicine: Dr. Ann dePeyster of SDSU's Graduate School of Public Health; Linda Pratt, Pollution Prevention Specialist with the County of San Diego's Environmental Health Services, and Ray Palmer, Integrated Pest Management specialist with the San Diego Unified School District. The participation of all these individuals was valuable throughout the MPPP and have been incorporated into the recommendations.. I Guidance Manual for the Preparation of Part I of the National Pollution Discharge Elimination System (NPDES) Permit Applications for Discharges from Municipal Separate Storm Sewer Systems, EPA, April, 1991. EPA-505/8-91-003A. /~ ,. 'I Page 5, Item Date 8/20/96. DISQJSSIOl'I A) Audit FIndings: 1. "Toxic material" is defined throughout this document as any material for which a Material Safety Data Sheet (MSDS) is required by Federal Occupational Safety and Health Administration Worker Hazard CommlU1ication Regulation and CalOSHA, General Industry Safety Orders, section 5194, Title 8 of the California Administrative Code. Therefore, the City has developed a Hazard CommlU1ication Program which: "requires the collection and maintenance of MSDS sheets. Copies of MSDS for all hnzardous substances to which City employees may be exposed will be maintained in the Risk Management Division. MSDS are to be made available for review by all employees in their work area dwing eoch work shift. " The individual worksites have been keeping MSDS sheets for their operations. City-wide coordination is on the Risk Manager's list of items to address. 2. The annual total of toxic materials used in the City is approximately 2.2 million pOlU1ds. The largest portion of this comes fTom gasoline used for the City's vehicle fleet. The annual cost of these materials is approximately $357,000. 3. 24 different types of pesticide applications were identified, with an annual total of 15,700 polU1ds at an approximate cost of $9,331 annually. Of this amolU1t, over 14,000 pOlU1ds is used by Public Works contractors for structural and landscape/parks pest control. The highest priority for phase-out of all pesticides is an herbicide which is used in two fommlations (Trimec and Weed-B-Gone) at Marina Park. These two pesticides amolU1t to only 13 gallons annually at a cost of $285 per year. Trimec and 'Weed-Be-Gone' contain 2,4-D, which is listed on the State of California Department ofIndustrial Relations (CAUOSHA) Hazardous Substances list because of its toxicity. Other pesticides accolU1t for approximately 13,400 pOlU1ds. These include: Dursban, Diazinon, Torus 2E, and Tempo and are used by the Park and Recreation Department and its contractor, Fire Departments Station #2 and #6. Total cost spent annually for these are $341. Substitution of alternatives will be tested for these chemicals and replaced, where possible. It -:5' Page 6, Item Date 8/20/96. 4. Other chemicals beside pesticides are solvents and corrosives. The City uses solvents in Public Works and during Print Shop operations. City staff is recommending substitution for these items (see BMP list). 5. The City has already made, or is in the process of making, substantial reductions in the use of toxic materials. The most significant include: use of cWorine gas and muriatic acid has been substantially reduced at city swimming pools. Virtually all building paints and coatings are now water-based. Traffic paints no longer contain lead pigments. A simple vinegar/water solution is used to clean the gym floors. 6. Gasoline, dispensed each year to City vehicles trom the fuel tank at the City Operations Yard accounts for almost 1.2 million pounds of the total materials consumed by the City. Gasoline containing benzene is listed by the State of California as a carcinogen and is also considered a respiratory hazard. Most, if not all gasoline contains benzene. However, there is very little that can be done, other than fuel-switching, to reduce the city's overall need for gasoline. 7. Storage of materials was examined in relation to the amounts used. With a few exceptions, it appears that amounts stored are not excessive. 8. Difficulties in identifYing materials for the inventory data points to the need to better track the use of materials identified as high priorities for phase out and for the city to gain confidence in its inventory changes. B) Pilot Findings: I. Cleaning staff, under the direction of Barry Edwards, Supervising Custodian in the Public Works Dept., tested cleaning alternatives for most major cleaning applications. They were satisfied with results on most alternatives except the floor cleaner. Additional training on use of new products is required by CalOSHA and should be more aggressively pursued. 2. Successful pest control alternatives were found for fungicides and herbicides used in landscape pest control by Parks and Recreation staff. These alternatives were found to be successful. Other suggested alternatives were not tried because no pest problems arose during the pilot test period. 3. Structural pest control (i.e., ants, cockroaches, and fleas in and around buildings) is perfonned by an outside contractor. The current contractor already works in an Integrated Pest Management mode. His weekly service II" " Page 7, Item Date 8/20/96. consists of monitoring for pest problems, recommending additional sanitation measures when needed, and providing occasional spot treatments with least- toxic pesticides. EHC made several recommendations for additional pest control alternatives, which the contractor accepted. q Best Management Practice Findings Specific BMP's were developed in the pilot program. Staff worked with the consultant to identifY appropriate BMPs and provide Council with the results, including costs, of those used during the pilot program and those recommended to test in the future. Each of the BMPs are listed in detail in the attached report found on pages 8-15. These BMPs are recommended for Council adoption. D) Other Facton; which mll'Jt be Addressed to Successfully Implement the Recommendations: Staff have evaluated and acknowledge the following obstacles to implementation that must be addressed and overcome in switching to 'least toxic' alternatives. These include: . Difficulties in procurement - municipalities typically purchase garden and cleaning supplies ITom one supplier who can provide the materials in large quantities. Some alternative cleaning and pest control products are not carried by janitorial supply outlets; they may have to be obtained separately. . Product labels and other materials are mostly written in English, not necessarily the first language of those who will be using them. It is recommended that measures be taken to assure an understanding of the use of new product instructions and infonnation, and to provide where possible, translation into the appropriate languages. This will facilitate use as well as communicate product risk and safety to the workforce. . Additional training - least toxic pest control requires knowledge of Integrated Pest Management (IPM) which prescribes evaluation of mechanical and biological controls and nontoxic chemicals before using a toxic material. Also required is some knowledge of the pest. Some IPM training for landscape and park maintenance will result in a smoother transition to better alternatives, and will provide staff with a greater understanding of integrated pest management and its relationship to the public's health and well being. The County's Environmental Health Services has planned some training sessions for IPM in 1996-97. /~,? Page 8, Item Date 8/20/96. · Govemment specifications - in certain cases, government agencies working with the City have prescribed products to be used, particularly in cases where the City maintains parkland owned by the Port District. For example, the Port District requires the City to use a particular pesticide at Marina Park for which a less toxic alternative is available. In the absence of specifications that contain environmental/heaIth criteria, price considerations may be the primary determinant. The least expensive product will be purchased rather than the most environmentally benign product. · Contracted work - In situations where the City contracts pest control and/or cleaning services, the contractors must be trained in integrated pest management and the contract conditions specified by the Contract Manager and/or Purchasing Division as appropriate, in conjunction with the Environmental Resource Manager. None of these problems are insurmountable. The key to successfully adapting new products and routines is the involvement and support of all the staff. "Making the switch" is a team effort that requires enough flexibility to allow for some experimentation. E) Pollution Prevention Policy Staff is recommending implementation of a Pollution Prevention Policy resulting ftom the three year effort. A Pollution Prevention Policy will result in reducing the toxicity and vollU11e of materials used to the greatest extent possible, and will incorporate a mechanism to ensure continuous improvement in its pollution prevention practices. The goal of such a policy is to ensure that the City is using the best available options for pollution prevention throughout the City and to promote awareness and support for pollution prevention among employees, the public, and the business community. The Pollution Prevention Policy will ensure that City operations and maintenance activities will be structured so that the need for toxics is reduced or eliminated. Strategies for pollution prevention include choice of materials and design; preventive maintenance; operating procedures; and product substitution. It will ensure a process that dictates when a toxic material is needed, the amount used is the least possible; and a protocol will be developed that includes training, doclU11entation and monitoring. It will also ensure an improved process for providing access to information for the public. The policy will continue to evolve through ongoing review and update as new information becomes available and better techniques and products are developed. Every effort will be made to adopt practices that do not increase the operating costs of the City. Pollution prevention is a long term investment and cost savings are intended /I.r Page 9, Item Date 8/20/96 to be realized over the long run. The Pollution Prevention Policy is specified on Appendix A. FISCAL IMPACf: There are two categories of costs incurred by the use of toxic materials: 1. The cost of the material itself, which in many cases is higher than the cost of non- toxic alternatives 2. The cost of managing toxics, including environmental regulatory fees, hazardous waste disposal costs, and time spent complying with hazard communication, reporting requirements, and training. It is important to consider these factors, so that the true costs of using a product can be incorporated into purchasing decisions. Therefore, an immediate goal is to develop specifications for toxicity criteria and purchasing products. Direct Cost Savings Cost savings result when particular uses of toxics are simply eliminated, for example, the use of "air freshening" urinal blocks which contain the carcinogen para-dichlorobenzene. Elimination of 2,4-D herbicides and recommended priority pesticides would provide a simple cost savings totaling $626 annually. Other savings will come from replacement of more extensively used materials, such as Round-Up, which costs the City $7,835 annually. There is currently no alternative for Round-Up, but this policy will implement a process for seeking out alternatives as they become available. An alternative for 2,4-D is a decision that clover growing on lawns in City parks is acceptable. Similarly, implementation of integrated pest management for structural pest control can provide significant savings in materials costs. Typical pest control spray services cost up to several hundred dollars per year, depending on the size of the buildings and frequency of spraying. This cost minus the cost of relatively inexpensive alternative pest control products represents the potential cost savings available from a switch to less toxic pest control. Use of generic vinegar, ammonia, and soap or detergent in cleaning formulations can offer great savings over commercial cleaners that use these same ingredients as the active materials. In a sample cost comparison, one gallon ofVons white vinegar, enough to make two gallons of window cleaner, cost $2.18. In contrast, two gallons ofVons Window Cleaner cost $9.22. Improvements in operations and maintenance, and better housekeeping, also result in cost savings. An example is good inventory control, so that products do not get too old and have /t" Page 10, Item Date 8/20/96. to be thrown out. Keeping the lids on volatile liquids, such as parts cleaning solvents and paints, reduces losses due to evaporation. Purchase of good mechanical weeding equipment such as weed whackers reduces the costs of both labor and herbicides used to control weeds. Also, if alternative materials are used, the City could capitalize on a reduction of paperwork, since the use of toxic materials is accompanied with a regulatory reporting process, whereby most materials are tracked, recorded, and catalogued for the State of California and the federal government. No Net OJanges In other situations, a product substitution results in a safer product with neither a cost savings or loss. An example is the proposed alternate blanket wash solvent for the print shop, to replace the currently used solvent that contains percWorethylene, a carcinogen. When dealing with listed carcinogens, there is no set level to detennine what is dangerous and what is not. Trace amounts accumulate over time in the human body; thus it is impossible to determine an appropriate use. Cost Increa<>es Initial investments and increases in labor can result in increased costs, at least for the fIrst years of a pollution prevention policy. The cost of chlorine bleach for disinfection of swimming pools, for example, is greater than the cost of cWorine gas, used previously, because more is needed. In the San Diego UnifIed School District, the results of using IPM instead of conventional pest control have been mixed. /J.".- /~ Page 11, Item Date 8/20/96. Indirect Costs In addition to the direct cost of continued hazardous substances use due to product expense or labor, there is also a category of indirect costs which should be taken into account when considering product purchase or use. These indirect costs include such items as overall worker health and productivity. Further, while no specific data exists, there are potential impacts on potential lost productivity, the general citizenry, as well who use or frequent various public facilities. Attachments: ~ Appendix A - Policy f Appendix B - Basis for Detennining What is Toxic Appendix C - Sample Pollution Prevention Staff Task Force U Appendix D - Sample Pollution Prevention Plans rn Appendix E - Toxics By Type of Material S Appendix F - Toxics Audit, By City Department z: Appendix G - Toxics Report and appendices I~"'// -'. . RESOLUTION NO. 14'9/~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING MUNICIPAL POLLUTION PREVENTION POLICY, RECOMMENDATIONS AND BEST MANAGEMENT PRACTICES TO REDUCE THE USE OF TOXIC MATERIALS IN THE CITY OPERATIONS WHEREAS, the City entered into a contract with the En.vironmental Health Coalition (EHC) to initiate a multi-year Municipal Pollution Prevention project, starting in July of 1993 and ending in July of 1995; and WHEREAS, the project was designed by EHC as a model program for other public agencies to utilize to help reduce the use of toxic materials; and WHEREAS, the EHC has prepared a report which was used by the city for informational purposes only to prepare the Pollution Prevention Policies and Best Management Practices; and WHEREAS, the project was funded by a $30,000 grant to EHC from the Jesse smith Noyes Foundation; and WHEREAS, the goals of the project were to: (a) audit the use of toxic products in city public places and city work areas. (b) reduce the use of toxic materials used in City operations, and (c) create a model for other cities to follow. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby adopt the Pollution Prevention Policy attached hereto as Appendix A, and the Best Management Practices as identified in this Policy. BE IT FURTHER RESOLVED that the City Council does hereby adopt the following recommendations: 1. Develop a purchasing criteria and policy for products that contain toxic materials. The criteria shall take into account environmental and public health criteria, and emphasize a switch of products from those previously purchased to nontoxic or least toxic alternatives where reasonable, and to include this criteria in consultants contracts, requests for proposals, and landscape and maintenance contracts and bid packages. 1 It ' 1..2 2. Reduce specifically materials City contractors. the use of pesticides, as feasible, identified for phase-out and those used by 3. Reduce gasoline utilization, where feasible, via expansion of replacement vehicles in the fleet using alternative fuels. 4. Develop a tracking form and process, as feasible, so quantities and costs of materials targeted for use-reduction or phase-out can be easily accounted for on an annual basis by fiscal year. Presented by Approved as to form by ~ y yL{.A'r\~ Ann Y. Moore, Acting City Attorney Barbara Bamberger, Environmental Resource Manager C:\rs\polution.pol 2 /~, J J APPENDIX A COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: POLLUTION PREVENTION POLICY POLICY NUMBER EFFECTIVE DATE PAGE 1 ADOPTED BY: Resolution No. I DATED: POLLUTION PREVENTION POLICY The City of Chula Vista uses in its operations potentially hazardous and toxic materials in the course of providing operations and maintenance of city owned facilities. These materials pose potential hazards to city employees and members of the public, and constitute toxic pollution when released to the environment. These materials generate costs associated with purchase, regulatory compliance and disposal. Local governments have the opportunity and obligation to act as regional leaders in pollution prevention, by procurement of least-toxic materials, and by educating the public regarding its efforts to reduce the use of toxics. Accordingly, the policy of the City of Chula Vista is to prevent pollution resulting from its activities whenever possible. The City will accomplish this by reducing the toxicity and volume of hazardous materials used to the greatest extent possible, and will incorporate a mechanism to ensure continuous improvement in its pollution prevention practices. GOAL STATEMENT 1. Ensure that the City is using the best available options for pollution prevention throughout City. 2. Promote awareness and support for pollution prevention among employees, the public, and the business community. GUIDING PRINCIPLES City operations and maintenance activities will be structured so that the need for toxics is reduced or eliminated. Strategies for pollution prevention include choice of materials and design; preventive maintenance; operating procedures; and product substitution. When a toxic material is needed, the amount used shall be the least possible. The material will be used in a protocol that includes training, establishes documentation, and monitoring. The protocol will be established by staff upon approval of the policy. \ 10 - 11..\- COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: POllUTION PREVENTION POLICY POLICY NUMBER EFFECTIVE DATE PAGE 2 . ADOPTED BY: Resolution No. I DATED: The public will have access to information about hazardous materials used by the City as required by state law. The public will have access to information about pollution prevention. In certain cases, public education itself may be the Best Management Practice. The policy will continue to evolve through ongoing review and update as new information becomes available and better techniques are products are developed. IMPLEMENTATION 1. The City shall implement the Polution Prevention Policy. Pollution Prevention Plans shall be developed for each major department dealing with hazardous and toxic substances. The Plans shall include: A. A timeline for implementation of plans shall be developed and incorporated into the pollution prevention plans. "Timelines shall result in implementation of product substitutions, minor building improvements such as caulking, and other measures that do not require major capital expenditures, within three years. B. Incentives and recognition for employees who advance the implementation of pollution prevention by identifying substantially new approaches, techniques, or products to reduce use of toxies. 2. Development of toxics audit tracking form and procedures, to be used with toxic materials that remain in use, so that the amounts and costs of using the materials can be quantified on a yearly basis. 3. Pollution prevention measures shall be tracked to determine costs and savings, and corresponding reductions in use of toxic materials. I b- IS- COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: POLLUTION PREVENTION POLICY POLICY NUMBER EFFECTIVE DATE PAGE 3 ADOPTED BY: I DATED: 4. Identification of pending state and federal legislation that may help or hinder cities to conduct pollution prevention, and recommendations to the Council regarding support, opposition, amendment of such bills. 5 A report shall be prepared and presented to the Council each January regarding progress in implementation of the policy, and recommendations for amendments, if any, to the policy. 6. Development of a pollution prevention staff task force which will implement Council recommendations, and shall be established to track and analyze on an ongoing basis, the implementation of this policy. This task force shall act as a resource to staff and Council on issues related to the use of potentially hazardous or toxic substances. The City Managers office shall take the lead in establishing this task force. 7. Adoption of the Best Management Practices (BMP), as listed in Exhibit A. 8. Develop a purchasing criteria and policy for products that contain toxic materials. Criteria shall take into account environmental and public health criteria and emphasize a switch of products from those previously purchased to nontoxic or least-toxic alternatives where reasonable, and to include this criteria in consultants contracts, requests for proposal, and landscape and maintenance contracts and bid packages. 16-1 (0 " COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY EFFECTIVE NUMBER DATE PAGE 08-20-96 10f9 ADOPTED BY: I DATED: BEST MANAGEMENT PRACTICE CBMP) RECOMMENDATIONS: The EP A defines BMPs as follows: "Schedules of activities, prohibitions of practices, maintenance procedures, and other management practices to prevent or reduce the pollution of waters of the United States. ' BMPs also include treatment requirements, operating procedures, and practices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw material storage. ,,} Print Shop The City print shop is a small offset printer which does a high volume of work. Staff recommends an evaluation be made to examine the possibility of venting solvents outdoors. Current practice is to leave the door of the print shop open. Direct ventilation may increase the protection of personnel in the building working in close proximity to these solvents. I. Current UselIssue: Blankrola solvent Staff has been evaluating a substitute for Blankrola, which contains perchloroethylene. This chemical is listed on the Director's List as a carcinogen. BMP: Continue evaluating new products to replace Blankrola. Also consider substituting a citrus-based blanket wash product. I. Guidance Manual for the Preparation of Part I of the National Pollution Discharge Elimination System (NPDES) Permit Applications for Discharges from Municipal Separate Storm Sewer Systems, EPA, April, 1991. EPA-505/8-91-003A. J6- Il COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 20f9 ADOPTED BY: 08-20-96 I DATED: Associated Costs: The city currently uses Blankrola at a cost of $46 per gallon. Helion produces a low volatile organic compound (VOC) product called Safe Solve 240-A. This solvent is currently used by the City of Santa Monica. It utilizes a water rinse and wipe off blade. To compare the two, instead of using a pint ofBlankrola, approximately $6.00 worth, one would use a smaller quantity (i.e: 1-2 ounces) of Safe Solve 240-A at an approximate cost of$14-$16 per ounce. Another alternative is Nature Wash at $42 per gallon. 2. Current UselIssue: Inks The City currently uses conventional hydrocarbon-based inks in the print shop. Soy-based inks are available and the cost is currently $31.55 for a 5# can which equates to $6.31 per pound. The City of Santa Monica print shop found that 100% soy-based ink did not work well; they now use a partially soy-based product. BMP: IdentifY a soy-based ink that will work appropriately with the city's printing needs. Vanson provides a 30-50% vegetable oil- based ink (at least 20% coming from soy oil) at a cost of$8.00 per pound. Associated Costs: Last year the city used 100 pounds of hydrocarbon-based ink at a total cost of $574.20. Soy-based/vegetable oil-based inks could be purchased for $800 or less for the same amount. Switching to a less toxic ink would cost the city an additional $225.80 per year. 3. Current UselIssue: Paper The shop currently uses recycled paper for about 90% of its work. BMP: continue. 4. Current UselIssue: Increased ventilation in the Print Shop. The City hire an industrial hygienist to evaluate the print shop to determine control methods for solvent vapors. BMP: Follow recommendations of industrial hygienist \6-1~ . COUNCIL POUCY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 30f9 ADOPTED BY: 08-20-96 I DATED: Public Works: Equipment Maintenance I. Current Use/Issue: Gasoline powered vehicles The City is currently test-driving two electric vehicles. A number of /rucks have been converted to compressed natural gas (CNG). The City is also involved in a national program to evaluate alternative fuels and a groundbreaking demonstration of fuel cell technology for transit buses. BMP: Continue evaluating alternatives to gasoline or diesel fueled vehicles. 2. Current Issue: Motor Oil: The City uses 4,000 gallons of oil a year. BMP: Evaluate switch to re-refined motor oil. 3. Current Issue: Use of antifreeze: The city currently uses 100 gallons of antifreeze per year. There are two issues regarding the use of antifreeze that have been addressed in this report. The first has to do with properly disposing the waste to reduce its environmental impact, and the second is its potentially harmful effect on wildlife. Used antifreeze may contain high concentrations of copper, lead and zinc due to the antifreeze sitting in the vehicle radiator. The City currently disposes of the antifreeze in the sewer system. Recycling is the recommended approach. Recycling used antifreeze can easily be done. Additionally, the city can begin to purchase a less toxic antifreeze compound on the market which contains propylene glycol instead of ethylene glycol. Ethylene Glycol, is toxic to animals if ingested, pursuant to section 6626.24(a)(8), Title 22. 22CCR. Antifreeze attracts birds and animals because of its sweet taste. The California Condor recovery program was stifled by condors drinking antifreeze and dying. One alternative brand was located: Sierra Antifreeze, manufactured by Sajebrands Corp. This brand is considered five to ten times safer than typical antifreeze. This type of antifreeze is also accepted by Safety-Kleen for recycling. The annual cost difference between the two products is an additional $289.00. I"=-- Iq COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 40f9 ADOPTED BY: 08-20-96 I DATED: BMP: Conduct a pilot test of Sierra Antifreeze in City vehicles. Associated Costs: The City currently purchases 100 gallons of antifreeze per year at a cost of $3.77 per gallon. Sierra antitTeeze, the recommended alternative is $6.66 per gallon. The cost of switching to the less toxic alternative an additional $289 annually. BMP: recycling. Set aside a place in the garage for 3D-gallon containers of used antitTeeze for 4. Current UselIssue: Auto Paints The City cu"ently buys mlto parts pre-paillfed, so that painting does not have to be done on site. BMP: Continue. 5. Current UselIssue: Parts Cleaner: A Safety-Kleen unit is present in the garage for cleaning parts using petroleum hydrocarbon solvent. This type of unit is beneficial because used solwnt is collected by the company, thus reducing exposure to city workers, and the solvent is recycled and reused. BMP: Continue to use solvent only for final cleaning of parts; cover tank when not in use to prevent evaporation; allow parts to drain completely to reduce spilling. 6. Current UselIssue: Diesel exhaust: It is sometimes necessary to have engines rulming in the garage, which adjoins a building where other City operations take place. As in item 4 above, staff recommends hiring an industrial hygienist to evaluate ventilation needs in the garage related to diesel exhaust. BMP: Evaluate recommendations of the industrial hygienist. Cleaning Products Cleaning products are used regularly by the Custodial Division of the Public Works Operations division and by the Parks and Recreation Department. The Custodial Division performs all regular cleaning of City Administration buildings, libraries, and the parks and recreation centers. Staff at the Recreation centers also clean the facilities during evening hours and weekends, when the I b - J....O COUNCIL POUCY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 50f9 . ADOPTED BY: 08-20-96 I DATED: facilities are open to the public but the Custodial staff are off duty. In addition to the BMPs, one other recommendation derives ITom staff input to the process: Cleaning protocols become standardized to assure both Custodial and Recreation staff are using the same products and procedures. Training materials be established for staff working in the recreation centers, including part-time evening and weekend staff, in order to receive adequate information about cleaning techniques and their potential hazards if not used properly. . BMPs: 1. Current UselIssue: Concrete Floors Several related cleaning problems appear to come from the rough, unsealed concrete floors in the showers and outdoor restrooms. State law regarding public restrooms, toilet, and dressing facilities requires: . For shower, toilet, and dressing facilities, the walls, partitions, doors, lockers, and similar surfaces which require periodic cleaning shall be maintained smooth and finished so as to facilitate cleaning. (CCR, Title 22, Section 65551) The indoor showers and reslrooms are scheduledfor remodeling which will include re-grouting and sealing. The outdoor restrooms should at least have the sealer applied to reduce the frequency and increase the effectiveness of disinfectant cleaners used. BMP: To apply a sealer to prevent seepage of organic matter in porous surfaces that cannot be thoroughly cleaned. 2. Current UselIssue: Cleaning Services In the past, a night cleaning crew from the Custodial Division cleaned the facilities, so that by the morning they were clean and dry. Dry surfaces are not conducive to bacterial/fungal growth and odor. Resumption of this cleaning ~hift would provide more effective cleaning and allow the use of less-toxic cleaning products for routine cleaning. BMP: Consider adjusting cleaning schedule to allow adequate time for drying facilities through night cleaning. tb--'L \ COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 60f9 ADOPTED BY: 08-20-96 I DATED: 3. Current UselIssue: General Cleaning Problems There is a variety of products that the city's janitorial service comes in contact with. These include ink on desks and tables, cleaning in the recreation centers and libraries. Staff currently uses Super-800. a glycol ether containing a product considered irritating and strong smelling by workers. BMP: Replace Super 800 with trisodium phosphate cleaner, either generic tsp or brand same which also contains sodium sesquicarbonate. Gloves are required with either alternative product. For indoor walls, doors and countertops, replace Super 800 with Naturally Yours AlI- Purpose Cleaner or similar citrus-based cleaner. Naturally Yours is a line of cleaning products made from citrus-derived solvents. BMP: Metal polish. Previously used: Brite Boy Metal Polish, contains oxalic acid and ammonia. Recommended substitute: a moderately abrasive cleaner without acid or ammonia, such as Kleen King Stainless Steel and Copper Cleaner, which contains abrasive minerals and a nonionic surfactant. BMP: Graffiti remover. Previously used: solvent-based graffiti removers. Suggested replacement: So Safe or other citrus-based graffiti remover. BMP: Air freshener for showers and restrooms. Previously used: Bubble Gum Air Freshener, disinfectants. Suggested instead: seal porous concrete surfaces, as noted above; add an additional cleaning shift per day, as suggested above; substitute Earth Care products mineral deodorizer, a zeolite-based deodorizer, or other mineral deodorizer which acts as a filter and does not release anything into indoor air. BMP: Glass cleaner. Previously used: sudsy ammonia solution. Suggested replacement: vinegar and water solution or commercial citrus-based glass cleaner such as Naturally Yours Glass and Window Cleaner. BMP: Tile cleaner for removal of soap and water spots. Previously used: Cling On, a phosphoric acid containing product. Suggested substitute: Naturally Yours Basin/Tubrrile cleaner or similar citric acid-based product. \ 6 - 2.."2-- COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 70f9 ADOPTED BY: 08-20-96 I DATED: BMP: Water Conditioning Unit: An additional step which would reduce water and soap spots and reduce the need for cleaning to remove them, is installation of a water conditioning unit to the water line coming into the building. A water conditioner, as opposed to a water softener, does not add or remove minerals from water; it consists of a semi-precious metal alloy which changes the electrical properties of mineral ions so that they do not precipitate out. It also has potentially great benefits for reducing the amount of cleaning and chlorine needed for the swimming pools. Staff is recommending evaJuation of a system, for a trial period, on a water line which supplies water to a swimming pool and adjacent building. BMP: Tile cleaner, disinfectant. Previously used: A-500; contains quaternary ammonium chlorides. Suggested replacement: Naturally Yours Basinffub/Tile cleaner or similar citric acid- based product. Citric acid is not considered a disinfectant although it may have weak disinfecting action. However, this cleaner has been used successfully in the City of Santa Monica to clean aJl public restrooms and showers, including outdoor facilities used by Santa Monica's large homeless population. According to staff, both custodial workers and the public are pleased with the level of sanitation and the smell of the facilities. BMP: Spot cleaning of body fluids. Previously used: chlorine bleach (5.25% sodium hypochlorite) for fast, effective cleanup and disinfection of spills of potentially pathogenic organic materiaJs such as blood and human wastes. We do not recommend any change in this procedure, in accordance with City policy on prevention of blood-borne pathogens and general worker safety considerations. BMP: Toilet Bowl Cleaner. Previously used: Pine Odor Disinfectant, containing quaternary ammonium chlorides and pine oil, for basic sanitation, and a hydrochloric acid-based cleaner for removaJ of hard water deposits. Suggested replacement: Naturally Yours Toilet Bowl Cleaner, or other citric acid based cleaner. The cleaner may need to be left on longer or used more frequently to remove hard water deposits. BMP: Drain cleaner. Currently used: an enzyme based product which digests organic matter that may block drains ifallowed to accumulate. Suggested alternative: Continue current practice. This is the safest type of product available for prevention and clearing of blocked drains. BMP: Cleaner for gymnasium floors. Currently used: a vinegar/water solution. Suggested cleaner: continue current practice. II /6-'23 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: Pollution Prevention Policy Attachments POLICY NUMBER EFFECTIVE DATE PAGE 80f9 ADOPTED BY: 08-20-96 I DATED: Swimming Pool Chemicals The Recreation Division of Parks and Recreation has responsibility for maintaining the City's two swimming pools, at the Parkway Memorial Recreation Center and at Lorna Verde. Current UselIssue: Pool Chemicals Several major changes have already been made to use safer substitutes that will effectively disinfect and maintain pH balance ill the pools: . Chlorille gas: replaced with chlorine bleach. . Muriatic acid: replaced with CO2 at one pool so far, with plalls to introduce it at the other pool as well. BMP: Test feasible aJternatives for chlorine-based disinfection available for public pools and compatible with health codes. Pesticides 1. Current UselIssue: Phase out priority pesticides for use in landscape and recreational areas. Of the pesticides used by and for the City of Chula Vista, 01l1y Drione is considered low enough ill risk that the BMP is to continue using it indefinitely. For all the remaining pesticides the goal should be to ultimately phase them out. Five pesticides that are high priority for phaseout are: . 2,4-Dichlorophelloryacetic (2,4-D) acid -found in Trimec and Weed-B-Golle . Diazilloll . Dursball . Tempo . Torus 2E BMP: Products that contain 2,4-0 be phased out. Other listed pesticides should have the highest priority for implementation of alternatives to reduce or eliminate their use. \ '.:, - '1...4 COUNCIL POLICY CITY OF CHULA VISTA SUBJE<::T: Pollution Prevention Policy Attachment POLICY NUMBER EFFECTIVE DATE PAGE 90f9 ADOPTED BY: 08-20-96 I DATED: BMP: An Integrated Pest Management (IPM) training program be implemented to provide permanent, least-toxic pest control for the City. The IPM program is proposed to consist of the following elements: 1. Identification of all potential pests 2. Establishment of monitoring guidelines for each pest 3. Establishment of injury levels and action thresholds for each pest species before doing any treatment 4. Creation of a recordkeeping system 5. Development of a list of acceptable management strategies for each pest. The existing list of BMPs for pest control may be used as a reference in developing this list. 6. Development of specific criteria for selection of pest management methods. 7. Development of guidelines to be followed each time a pesticide is used. 8. Development of a list of resources 9. Establishment of procedures for review and update of the IPM program. ~ \ 6 - )....:5 APPENDIX B Basis for Determining What is Toxic: The following were used as guidelines to define "toxic" for the purpose of this report. There is not one definitive list, so staff attempted to utilize those lists considered most authoritative and utilized widely for legislative and reporting purposes. Materials audited were those for which Material Safety Data Sheets (MSDS) sheets are required by law to be available to provide workers with information on the health and safety risks of materials with which they work and methods of treatment should exposure occur. MSDS is triggered by a material that is used at a workplace that has a potential for causing either a public health or an environmental problem. We found that every department had lists of materials for which MSDS are required and that the MSDS sheets themselves are a useful source of information about the ingredients and hazards.2 Under the California Hazardous Substances Information and Training Act and the Hazard Communication regulation, Title 8, California Code of Regulations, Section 5194: "all California employers who use hazardous substances have hazard communication responsibilities to provide this information to their employees...if 1% or more of the product is a hazardous substance (0.1% for carcinogens). Chemicals found on the State of California Director's List of Hazardous Substances have already been shown to be hazardous but there are many other hazardous substances that are not on the list." The State of California's Hazard Communication Standard Manufacturer/Importer Duties Checklist is a guideline of hazard communication responsibilities for U.S. manufacturers and importers of hazardous substances. It requires California manufacturers to automatically list chemical substances on: a) the National Toxicology Program federal list of carcinogens, b) the International Agency for Research on Cancer list or c) OSHA carcinogen lists as carcinogens. The substances need to be identified as such (5194 (d)(5)(B)). Manufacturers must prepare and employers must make available for employees these MSDS sheets. Manufacturers must prepare MSDS for any product containing a substance on the Director's List of Hazardous Substances, any material that has an OSHA permissible exposure limit or American Conference of Governmental Industrial Hygienists threshold limit value; or the carcinogens listed on those lists as defined above. 2 MSDS lists only OSHA-dcsignated Hazardous Substances. Trace ingredients known to be present in a product, (e.g. benzene) may not be listed. Information on the health etTccts ofspecitic materials is often not availahle or incomplete: for categories which include reproductive. developmental. and immune effects. \ 6 - ).. <..0 . State of California Toxicity Lists Referenced in Report Two sources used as references for this report include the State of California's Hazardous Substances List, otherwise referred as the "Director's List". This is a list of hazardous substances required to be prepared by the Director ofCalOSHA, pursuant to Labor Code Section 6380. The substances on this list are subject to the provisions of Labor Code Sections 6360 through 6399.7 and Section 5194 in Title 8 of the California Code of Regulations. Established by the State of California, the Director's list identifies hazardous substances and carcinogens. Sources used for listing include I) International Agency for Research on Cancer; 2) Environmental Protection Agency lists pursuant to the Clean Air and Clean Water Acts; 3) General Industry Safety Order Section 5155; 4) California Department of Pesticide Regulation's list of Restricted Material; 5) Information Alerts put out by the Hazard Evaluation System and Information Service pursuant to Labor Code Section 147.2. Additionally, the State of California has determined characteristics of toxicity, pursuant to section 66261.24(a)(8), Title 22, California Code of Regulations (22 CCR). The Proposition 65 List is a State of California list which identifies substances that contain either a probable or a known carcinogen. ToxicIHazardous Substances used within the City The City does not use many substances identified on these lists, but there are a few. These materials are the key materials recommended for phase-out. They include: (I) Blankrola solvent (p. 12) used in the print shop - containing perchloroethylene, Trimec and Weed-B-Gone (p.17-l8) which both contain 2,4-D and are used as a pesticide in one or more parks; (2) polytech MAB-l 0 used in building construction and repair -- containing methylene chloride; (3) Stamark brand primer P-46 and safety Ideen solvent used in maintenance - containing benzene. Ib-21 Appendix C Sample Pollution Prevention Staff Task Force The Pollution Prevention Staff Task Force shall be established to track and analyze, on an ongoing basis, the implementation of this policy. It is proposed that the following departments and divisions participate: City Manager - designee Engineering Finance: Purchasing Fire Parks & Recreation Personnel: Risk Manager Police: Crime Lab Public Works: Custodial Services Public Works: Building C & R Public Works: Vehicle Maintenance Ib- )..~ Appendix D Sample Pollution Prevention Plans . Major Areas: 1. Pesticides: Landscape and Building Lead Department: Parks & Rec 2. Building Maintenance, including custodial Paints/Coatings Print Shop 3. Vehicle Maintenance Public Works Public Works Public Works Public Works ------------------------------------------------------------------- I. Pesticides: The Plan shall consist of development of an Integrated Pest Management (IPM) Program, to contain the following elements. A. Indentify the major pest problems. B. For each pest. establish monitoring guidelines and a recordkeeping system. C. Establish injury levels for each pest before undertaking any treatment. Total eradication of pests is not economically or biologically feasible. The" inj ury level" is that level of economic or aesthetic damage judged not to be tolerable. Action is warranted against pests that are causing damage at or above the injury level. D. Develop a list of acceptable management strategies for each pest. The existing list of Best Management Practices (BMPs) for pest control may be used as a reference in developing this list. E. Develop specific criteria for selection of pest management methods. P. Develop guidelines to be followed each time a pesticide is used. G. Develop a list of resources. R. Establish procedures for review and update of the IPM program. 16-l.'i II. Building Maintenance The Pollution Prevention Plan for Building Maintenance shall contain these elements: A. Review, revision, and update of BMPs for CUstodial Services, Building Construction and Repair. Park and Recreation. Print Shop. and Street Maintenance every 2 years. B. Development of workplans for staff training, including identification of staff training needs. and potential resources available. C. Review purchasing specifications to identify those that may need to be rewritten to allow purchase of least-toxic materials, and development of timelines and assignment of staff to rewrite them. D. Fox toxic materials still in use, priorities for phaseout. and possible, for reductions in use. identification of high numeric goals, where III. Vehicle Maintenance The Pollution Prevention Plan for Vehicle Maintenance shall contain these elements: A. Review, revision, and update of BMPs for Vehicle Maintenance every two years. B. Development of workplans for staff training, including identification of staff training needs, and potential resources available. C. Review of purchasing specifications to identify those that may need to be rewritten to allow purchase of least- toxic materials and development of timelines and assignment of staff to rewrite them. D. 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Pollution Prevention 3.5.1 Definition of Pollution Prevention 3.5.2 Benefits of Pollution Prevention 3.5.3 Obstacles to Implementation 3.5.4 Making the Switch 4.0 THE TOXICS AUDIT 4.1 City Structure 4.2 Methodology 4.3 Toxics Inventory 4.4 Hazards of Toxic Materials in Use 4.4.1 Hazards of Maintenance Materials 4.4.2 Hazards of Pesticides Introduction Insecticides 2 16-4 S- MUNICIPAL POLLUTION PREVENTION PROJECT FOR THE CITY OF CHULA VISTA, CALIFORNIA Dated August 8, 1996 1 I b-l\l.\ Herbicides 4.5 Analysis of the Audit 4.5.1 Toxic Totals 4.5.2 Changes Made 4.5.3 Exceptions 4.5.4 Priorities for Phase-Out 4.5.5 Financial Analysis Direct Cost Savings No Net Changes Cost Increases Indirect Costs 4.5.6 Storage of Materials 5.0 PILOT PROJECT 5.1 Purpose of Project 5.2 Methodology 5.3 Summaries of Pilot Project 6.0 CONCLUSIONS 3 \6-YIo 1.0 Pollution Prevention Policy and Inventory: Executive Summary Environmental Health Coalition (EHC) and the City ofChula Vista worked jointly on a one year Municipal Pollution Prevention project, starting in July of 1993 and ending in July of 1994. The project was funded by a $30,000 grant to EHC from the Jesse Smith Noyes Foundation. The goals of the project were to assist the City to reduce the use oftoxic materials used in City operations, and to create a model for other cities to follow. "Pollution prevention" can be defined as "changes in processes or materials that reduce, avoid, or eliminate the use of toxic or hazardous substances or generation of hazardous by-products. It seeks to reduce the quantity and toxicity of materials going into processes, not just those coming out as hazardous wastes." The purpose of a partnership between the City and EHC in pursuing projects such as this one is to improve and protect environmental health by facilitating a shift toward pollution prevention as the primary means of managing toxic and hazardous materials. The Municipal Pollution Prevention Project (MPPP), consisted ofthree phases: 1. An audit of toxic materials currently used for City operations; 2. A pilot project to implement less toxic pest control and cleaning methods at one City facility on a trial basis; 3. Development of Best Management Practices for City operations for which alternative products or processes could be identified. Each phase is described briefly, with findings and recommendations. A summary ofthe recommendations is given at the end. 1.1 AUDIT The range of materials covered by this audit is broad. This report attempts to track materials used in public spaces, to provide this information in a concise and available report for the City Council to review, and to provide a basis in which the Council can make sound public policy decisions. In order to develop the report, the City and EHC conducted an extensive audit by interviewing department supervisors to determine which materials are currently in use, what quantities those materials are being used, and by examining information received from the Purchasing Department to verify amounts and costs purchased in one year. In most cases, the data was clearly available; where records were not available, the cost and quantity is based on departmental estimates. A database was created which has been made available for the City Council to review. 4 Ib- 41 Basis for Determinine 'What is Toxic?': Materials audited were those for which Material Safety Data Sheets (MSDS) sheets are required by law to be available to provide workers with information on the health and safety risks of materials with which they work. MSDS is triggered by a material that is used at a workplace that has a potential for causing either a public health or an environmental problem. We found that every department had lists of materials for which MSDS are required and that the MSDS sheets themselves are a useful source of information about the ingredients and hazards.' Under the California Hazardous Substances Information and Training Act and the Hazard Communication regulation, Title 8, California Code of Regulations, Section 5194: "all California employers who use hazardous substances have hazard communication responsibilities to provide this information to their employees...if 1% or more of the product is a hazardous substance (0.1 % for carcinogens). Chemicals found on the State of California Director's List of Hazardous Substances have already been shown to be hazardous but there are many other hazardous substances that are not on the list." The State California's Hazard Communication Standard ManufacturerlImporter Duties Checklist, which is a guideline for the hazard communication responsibilities of U.S. manufacturers and importers of hazardous substances used by California employers requires manufacturers to automatically establish substances on: a) the National Toxicology Program federal list of carcinogens, b) the International Agency for Research on Cancer list or c) OSHA carcinogen lists as carcinogens and need to be identified as such (5194 (d)(5)(B)). Manufacturers must prepare and employers must make available for employees these MSDS sheets. Manufacturers must prepare MSDS for any product containing a substance on the Director's List of Hazardous Substances, any material that has an OSHA permissible exposure limit or American Conference of Governmental Industrial Hygienists threshold limit value; or the carcinogens listed on those lists as defined above. MSDS lists only OSHA-designated Hazardous Substances. Trace ingredients known to be present in a product, (e.g. benzene) may not be listed. Information on the health effects of specific materials is often not available or incomplete for categories which include reproductive, developmental, and immune effects. 5 16-Yq,: State of California Toxicity Lists Referenced in Report Two sources used as references for this report include the State of California's Hazardous Substances List, otherwise referred as the "Director's List". This is a list of hazardous substances required to be prepared by the Director ofCaIOSHA, pursuant to Labor Code Section 6380. The substances on this list are subject to the provisions of Labor Code Sections 6360 through 6399.7 and Section 5194 in Title 8 of the California Code of Regulations. Established by the State of California, the Director's list identifies hazardous substances and carcinogens. Sources used for listing include 1) International Agency for Research on Cancer; 2) Environmental Protection Agency lists pursuant to the Clean Air and Clean Water Acts; 3) General Industry Safety Order Section 5155; 4) California Department of Pesticide Regulation's list of Restricted Material; 5) Information Alerts put out by the Hazard Evaluation System and Information Service pursuant to Labor Code Section 147.2. Addtionally, the State of California has determined characteristics of toxicity, pursuant to section 6626J.24(a)(8), Title 22, California Code of Regulations (22 CCR). The Proposition 65 List is a State of California list which identifies substances that contain either a probable or a known carcinogen. The City does not use many substances identified on these lists, but there are a few. These materials are the key materials recommended for phase-out. They include: (1) Blankrola solvent (p. 12) used in the print shop - containing perchloroethylene, Trimec and Weed-B-Gone (p.17-18) which both contain 2,4-D and are used as a pesticide in one or more parks; (2) polytech MAB-I0 used in building construction and repair __ containing methylene chloride; (3) Stamark brand primer P-46 and safety kleen solvent used in maintenance - containing benzene. . EHC staff interviewed department heads and supervisors to determine which materials were currently in use and to obtain estimates of the quantities and costs of the materials. A draft audit was then sent to each department for additions and corrections. A final draft was circulated in September, 1994. The Public Works divisions, in particular, have been commended for their efforts to complete the audit. . Staff Resources: Staff and departments participating are as follows: Barbara Bamberger, Environmental Resources Manager, Iracsema Quintilana, Public Works; Lynn Brown, Central Storekeeper; Public Works supervisors Ted Larson; Rick Matkin, Harlan Wilson, and Greg Hanson. One of the most critical individuals in the pilot project was Barry Edwards, Custodial Services Supervisor and the Parkway Recreation Center staff including Manuel Solario and Frank Alvarado; Jim Davis and Sal Cuellar of the Parks Department; Paul Taylor of Commercial of California and Tom Layman of the Fire Department. 6 /b-Ycr Technical Oversi!!:ht Board: A Technical Advisory Board was developed to oversee the project and provide comments on the findings and recommendations. This technical committee included: Dr. Ruth Heifetz of the UCSD School of Medicine: Dr. Ann dePeyster ofSDSU's Graduate School of Public Health; Linda Pratt, Pollution Prevention Specialist with the County of San Diego's Environmental Health Services, and Ray Palmer, Integrated Pest Management specialist with the San Diego Unified School District. The participation of all these individuals was valuable throughout the MPPP. Fundine: for Proiect: The project was funded by the Jesse Smith Noyes Foundation and the Environmental Health Coalition. Staff provided in-kind staff resources. 7 \ b - '50 1.2 PILOT PROJECT An 8.week pilot project was conducted to evaluate alternative pest control and cleaning methods and products for a trial period at one site. It was anticipated that alternatives which proved to be workable and acceptable to staff during the pilot program may be implemented citywide. Parkway Memorial Recreation Center was the site used for the pilot project. Building pest control, landscape pest control, and cleaning staff met with EHC staff and discussed the alternatives to be tried. Each of the three groups kept ongoing records with weekly notations on what worked and what didn't. 1.3 PROJECT FINDINGS: 1.3.1 Pilot Project Findings 1. Cleaning staff, under the direction of Barry Edwards, Supervising Custodian in the Public Works Dept., tested cleaning alternatives for most major cleaning applications. They were satisfied with results on most alternatives except the floor cleaner. They noted that additional training on use of new products would be helpful. 2. Successful pest control alternatives were found for fungicides and herbicides used in landscape pest control, under the direction of Jim Davis and Sal Cuellar in the Parks and Rec. Department. Other suggested alternatives were not tried because no pest problems arose during the pilot test period. These alternatives tested were found to be successful. 3. Structural pest control (i.e., ants, cockroaches, and fleas in and around buildings) is performed by an outside contractor, Paul Taylor of Commercial of California. This contractor already works in an Integrated Pest Management mode. His weekly service consists of monitoring for pest problems, recommending additional sanitation measures when needed, and providing occasional spot treatments with least-toxic pesticides. EHC made several recommendations for additional pest control alternatives, which Mr. Taylor accepted. 1.3.2 Audit Findings: I. The annual total of toxic materials used in the City is approximately 2.2 million pounds. The largest portion of this comes from gasoline used for the City's vehicle fleet. "Toxic material" is defined throughout this document as any material for which a Material Safety Data Sheet (MSDS) is required by Federal Occupational Safety and Health Administration Worker Hazard Communication Regulation and CaIOSHA, General Industry Safety Orders, section 5194, Title 8 of the California Administrative Code. Based on CalOSHA requirements, the City has a Hazard Communication Program which 8 Ib- 5\ "requires the collection and maintenance ofMSDS sheets. Copies ofMSDS for all hazardous substances to which City employees may be exposed will be maintained in the Risk Management Division. MSDS is to be made available for review by all employees in their work area during each work shift." 2. The annual cost of these materials is approximately $357,000. 3. 24 different types of pesticide applications were identified, with an annual total of 15,700 pounds. Of this amount, over 14,000 pounds is used by Public Works contractors for structural and landscape pest control. The annual cost of the pesticides in use by staff and contractors is $9,331. The highest priority for phase-out of all pesticides is an herbicide which is used in two formulations (Trimec and Weed-B-Gone) at Marina Park. Trimec and 'Weed-Be-Gone' contain 2,4-D, which is listed on the State of California Director's List because of its toxicity. Other pesticides account for approximately 13,400 pounds. These include: Dursban, Diazinon, Torus 2E, and Tempo. Substitution of alternatives will be tested for these chemicals and replaced, where possible. 4. Other chemicals beside pesticides are solvents and corrosives. The City uses solvents in the print shop and in public works. Staff is recommending substitution for these items. 5. The City has already made, or is in the process of making, substantial reductions in the use of toxic materials. The most significant include: use of chlorine gas and muriatic acid has been substantially reduced at city swimming pools. Virtually all building paints and coatings are now water-based; traffic paints no longer contain lead pigments; a simple vinegar/water solution is used to clean the gym floors. 6. Gasoline, dispensed each year to City vehicles from the fuel tank at the City operations yard accounts for almost 1.2 million pounds of the total materials consumed by the City. Gasoline containing benzene is listed by the State of California as a carcinogen and is also considered a respiratory hazard. Most, if not all gasoline contains benzene. However, there is very little that can be done, other than fuel-switching, to reduce the city's need to use gasoline for fleet vehicles. 7. Storage of materials was examined in relation to the amounts used. With a few exceptions, it appears that amounts stored are not excessive. 8. Worker safety was not comprehensively evaluated as a part of this project. As a result of visual inspections and interviews with staff, it is recommended that the City request consultation from the county industrial hygienist to evaluate two situations and determine further action upon completion ofthe evaluation. The two situations are the print shop and the public works yard where vehicle maintenance is performed. 9 16- S L- Due to the fact that EHC was not qualified to do such an evaluation, staff was unable to ascertain the impact and extent of dust and vehicle exhaust in the operation yard and garage and whether or not chemicals used in the print shop are adequately diffused. An industrial hygienist can further advise the City as to recommended ventilation improvements that might advance those operations. 9. The difficulties in identifying materials for the inventory data points to the need to better track the use of those materials that are identified as high priorities for phase out and for the city to gain confidence in its inventory changes. 1.4 FINAL CITY COUNCIL RECOMMENDATIONS: 1. Adol't a formal Pollution Prevention Policv to institutionalize the progress already made and provide for continuing reduction in the City's use and release of toxic materials. 2. Develop purchasin!! criteria and policv for products that contain toxic materials. The criteria shall that take into account environmental and public health criteria, and emphasize a switch of products from those previously purchased to nontoxic or least toxic alternatives where reasonable, and to include this criteria in consultants contracts, requests for proposals, and landscape & maintenance contractors. 3. Adopt Best Mana~ement Practices developed in pilot program and listed in Section 2.0 on pages 8-15 of this report. 4. Reduce the City's use of pesticides. specifically materials used by city contractors. Alternatives are available for most uses. Where alternatives exist, staff recommends two formulations of '2,4-D' be discontinued and the following pesticides targeted for reduction to the lowest possible level and eventual phase-out: Dursban, Diazinon, Torus 2E, and Tempo. 5. Reduce the City's use of harsh maintenance materials. where appropriate and adopt 'safer substitute' recommendations listed on page 61-67. 10 {l:.- 53 6. Request industrial hVi:ienist to provide an overall evaluation of key areas within the city. Utilize existing contract with the County of San Diego for this service. Because this survey did not fully address worker safety issues, it is recommended these services be utilized to more fully evaluate ongoing operations for worker related health issues. a. Identify oDDortunities to reduce Dossible respiratory eX\:lOsure in consultation with industrial hygienist. b. Reduce e-asoline and any potential health effects through: a) development of a worker protection plan for the city's public works operations yard and b) expansion of replacement vehicles in the fleet that utilize alternative fuels. 7. Develop a trackini: form and process so quantities and costs of materials targeted for use-reduction or phase-out can be easily accounted on an annual basis. 11 [6- Sy 2.0 BEST MANAGEMENT PRACTICES (BMPs) BMPs are the specific practices that represent the least-polluting method for a given activity at the current time. Best Management Practices were developed by EHC for the City's pest control, cleaning, print shop, swimming pools, and equipment maintenance. The BMP for pest control consists essentially in development of an Integrated Pest Management plan for pest control citywide. In a few cases, BMPs call for initial capital expenditures, such as sealing porous concrete floors. In several other instances, the BMPs call for continuing the current practices, which are already "state of the art." (Removed rest of paragraph) Obstacles to BMPs were identified as follows: custodial services - the number of staff relative to the number of people using the city's recreational facilities, along with long hours of operation hinder accurate control over BMPs. Similarly, the load of work at the print shop does not allow time for trying out new products or techniques. Technical assistance and staff training need to be implemented in these two areas to create a more consistent BMP program. 2.1 INTRODUCtION Phase III ofthe MPPP consisted of development of Best Management Practices (BMPs) for City operations. BMPs can be defined as any program, process, technology, or operating method that prevents or reduces pollution. BMPs is a term used frequently in clean water laws and regulations. The EP A defines BMPs as follows: "Schedules of activities, prohibitions of practices, maintenance procedures, and other management practices to prevent or reduce the pollution of 'waters of the United States. ' BMPs also include treatment requirements, operating procedures, and practices to control plant site runoff. spillage or leaks, sludge or waste disposal, or drainage from raw material storage. "2 BMPs developed by EHC for the City's MPPP incorporates results from the Pilot Project. Additional BMPs have been developed by the Engineering Department to fulfill the City's obligations for the Stormwater Permit program as required by the Clean Water Act. These BMPs are not part ofthat Permit process but complement and enhance the work done by the Engineering Department. 2. Guidance Manual for the Preparation of Part I of the National Pollution Discharge Elimination System (NPDES) Permit Applications for Discharges from Municipal Separate Storm Sewer Systems, EPA, April, 1991. EPA-505/8-9l-003A. 12 \ b - ':>S- 2.2 BEST MANAGEMENT PRACTICE (BMP) RECOMMENDATIONS: 2.2.1 Print Shop The City print shop is a small offset printer which does a high volume of work. Staff recommends an evaluation be made to examine the possibility of venting solvents outdoors. Current practice is to leave the door of the print shop open. Direct ventilation may increase the protection of personnel in the building working in close proximity to these solvents. 1. Current UselIssue: Blankrola solvent Staff has been evaluating a substitute for Blankrola, which contains perchloroethylene. This chemical is listed on the Director's List as a carcinogen. BMP: Continue evaluating new products to replace Blankrola. Also consider substituting a citrus-based blanket wash product. Associated Costs: The city currently uses Blankrola at a cost of $46 per gallon. Helion produces a low volatile organic compound (VOC) product called Safe Solve 240- A. This solvent is currently used by the City of Santa Monica. It utilizes a water rinse and wipe off blade. To compare the two, instead of using a pint ofBlankrola, approximately $6.00 worth, one would use a smaller quantity (i.e: 1-2 ounces) of Safe Solve 240-A at an approximate cost of$14-$16 per ounce. Another alternative is Nature Wash at $42 per gallon. 2. Current UselIssue: Inks The City currently uses conventional hydrocarbon-based inks in the print shop. Soy- based inks are available and the cost is currently $31.55 for a 5# can which equates to 56.31 per pound. The City of Santa Monica print shop found that 100% soy-based ink did not work well; they now use a partially soy-based product. BMP: Identify a soy-based ink that will work appropriately with the city's printing needs. Vanson provides a 30-50% vegetable oil- based ink (at least 20% coming from soy oil) at a cost of $8.00 per pound. Associated Costs: Last year the city used 100 pounds of hydrocarbon-based ink at a total cost of$574.20. Soy-based/vegetable oil-based inks could be purchased for $800 or less for the same amount. Switching to a less toxic ink would cost the city an additional $225.80 per year. 13 16- '0;"'(0 3. Current UselIssue: Paper The shop currently uses recycled paper for about 90% of its work. BMP: continue. 4. Current UselIssue: Increased ventilation in the Print Shop. The City hire an industrial hygienist to evaluate the print shop to determine control methods for solvent vapors. BMP: Follow recommendations of industrial hygienist 2.2.2 Public Works: Equipment Maintenance 1. Current UselIssue: Gasoline powered vehicles The City is currently test-driving two electric vehicles. A number of trucks have been converted to compressed natural gas (CNG). The City is also involved in a national program to evaluate alternative fuels and a groundbreaking demonstration of fuel cell technology for transit buses. BMP: vehicles. Continue evaluating alternatives to gasoline or diesel fueled 2. Current Issue: Motor Oil: The City uses 4,000 gallons of oil a year. BMP: Evaluate switch to re-refined motor oil. 3. Current Issue: Use of antifreeze: . The city currently uses 100 gallons of antifreeze per year. There are two issues regarding the use of antifreeze that have been addressed in this report. The first has to do with properly disposing the waste to reduce its environmental impact, and the second is its potentially harmful effect on wildlife. Used antifreeze may contain high concentrations of copper, lead and zinc due to the antifreeze sitting in the vehicle radiator. The City currently disposes of the antifreeze in the sewer system. Recycling is the recommended approach. Recycling used antifreeze can easily be done. 14 U::L - s:-. Additionally, the city can begin to purchase a less toxic antifreeze compound on the market which contains propylene glycol instead of ethylene glycol. Ethylene Glycol, is toxic to animals ifingested, pursuant to section 6626. 24(a)(8), Title 22, 22CCR. Antifreeze attracts birds and animals because of its sweet taste. The California Condor recovery program was stifled by condors drinking antifreeze and dying. One alternative brand was located: Sierra Antifreeze, manufactured by Safe brands Corp. This brand is considered five to ten times safer than typical antifreeze. This type of antifreeze is also accepted by Safety-Kleen for recycling. The annual cost difference between the two products is an additional $289.00. BMP: Conduct a pilot test of Sierra Antifreeze in City vehicles. Associated Costs: The City currently purchases 100 gallons of antifreeze per year at a cost of $3.77 per gallon. Sierra antifreeze, the recommended alternative is $6.66 per gallon. The cost of switching to the less toxic alternative an additional $289 annually. BMP: Set aside a place in the garage for 30-gallon containers of used antifreeze for recycling. 4. Current UselIssue: Auto Paints The City currently buys auto parts pre-painted, so that painting does not have to be done on site. BMP: Continue. 5. Current UselIssue: Parts Cleaner: A Safety-Kleen unit is present in the garage for cleaning parts using petroleum hydrocarbon solvent. This type of unit is beneficial because used solvent is collected by the company, thus reducing exposure to city workers, and the solvent is recycled and reused. BMP: Continue to use solvent only for final cleaning of parts; cover tank when not in use to prevent evaporation; allow parts to drain completely to reduce spilling. 15 Ib- '5~ 6. Current Use/Issue: Diesel exhaust: It is sometimes necessary to have engines running in the garage, which adjoins a building where other City operations take place. As in item 4 above, staff recommends hiring an industrial hygienist to evaluate ventilation needs in the garage related to diesel exhaust. BMP: Evaluate recommendations of the industrial hygienist. 2.2.3. Cleaning Products Cleaning products are used regularly by the Custodial Division of the Public Works Operations division and by the Parks and Recreation Department. The Custodial Division performs all regular cleaning of City Administration buildings, libraries, and the parks and recreation centers. Staff at the Recreation centers also clean the facilities during evening hours and weekends, when the facilities are open to the public but the Custodial staff are off duty. In addition to the BMPs, one other recommendation derives from staff input to the process: Cleaning protocols become standardized to assure both Custodial and Recreation staff are using the same products and procedures. Training materials be established for staff working in the recreation centers, including part-time evening and weekend staff, in order to receive adequate information about cleaning techniques and their potential hazards if not used properly. BMPs: 1. Current U se/Issue: Concrete Floors Several related cleaning problems appear to come from the rough. unsealed concrete floors in the showers and outdoor restrooms. State law regarding public restrooms. toilet, and dressing facilities requires: For shower, toilet, and dressingfacilities, the walls, partitions, doors, lockers, and similar surfaces which require periodic cleaning shall be maintained smooth andfinished so as to facilitate cleaning. (CCR, Title 22, Section 65551) The indoor showers and restrooms are scheduledfor remodeling which will include re-grouting and sealing. The outdoor restrooms should at least have the sealer applied to reduce the frequency and increase the effectiveness of disinfectant cleaners used. BMP: To apply a sealer to prevent seepage of organic matter in porous surfaces that cannot be thoroughly cleaned. 16 \Io-.~ 2. Current Use/Issue: Cleaning Services In the past, a night cleaning crew from the Custodial Division cleaned the facilities, so that by the morning they were clean and dry. Dry surfaces are not conducive to bacterial/fungal growth and odor. Resumption of this cleaning shift would provide more effective cleaning and allow the use of less-toxic cleaning products for routine cleaning. BMP: Consider adjusting cleaning schedule to allow adequate time for drying facilities through night cleaning. 3. Current Use/Issue: General Cleaning Problems There is a variety of products that the city's janitorial service comes in contact with. These include ink on desks and tables, cleaning in the recreation centers and libraries. Staff currently uses Super-BOO, a glycol ether containing a product considered irritating and strong smelling by workers. BMP: Replace Super 800 with trisodium phosphate cleaner, either generic tsp or brand same which also contains sodium sesquicarbonate. Gloves are required with either alternative product. For indoor walls, doors and countertops, replace Super 800 with Naturally Yours All-Purpose Cleaner or similar citrus-based cleaner. Naturally Yours is a line of cleaning products made from citrus-derived solvents. BMP: Metal polish. Previously used: Brite Boy Metal Polish, contains oxalic acid and ammonia. Recommended substitute: a moderately abrasive cleaner without acid or ammonia, such as Kleen King Stainless Steel and Copper Cleaner, which contains abrasive minerals and a nonionic surfactant. BMP: Graffiti remover. Previously used: solvent-based graffiti removers. Suggested replacement: So Safe or other citrus-based graffiti remover. BMP: Air freshener for showers and restrooms. Previously used: Bubble Gum Air Freshener, disinfectants. Suggested instead: seal porous concrete surfaces, as noted above; add an additional cleaning shift per day, as suggested above; substitute Earth Care products mineral deodorizer, a zeolite-based deodorizer, or other mineral deodorizer which acts as a filter and does not release anything into indoor air. BMP: Glass cleaner. Previously used: sudsy ammonia solution. Suggested replacement: vinegar and water solution or commercial citrus-based glass cleaner such as Naturally Yours Glass and Window Cleaner. BMP: Tile cleaner for removal of soap and water spots. Previously used: Cling On, a phosphoric acid containing product. Suggested substitute: Naturally Yours 17 16- bO BasinlTubrrile cleaner or similar citric acid-based product. BMP: Water Conditioning Unit: An additional step which would reduce water and soap spots and reduce the need for cleaning to remove them, is installation of a water conditioning unit to the water line coming into the building. A water conditioner, as opposed to a water softener, does not add or remove minerals from water; it consists of a semi-precious metal alloy which changes the electrical properties of mineral ions so that they do not precipitate out. It also has potentially great benefits for reducing the amount of cleaning and chlorine needed for the swimming pools. Staff is recommending evaluation of a system, for a trial period, on a water line which supplies water to a swimming pool and adjacent building. BMP: Tile cleaner, disinfectant. Previously used: A-500; contains quaternary ammonium chlorides. Suggested replacement: Naturally Yours BasinlTub/Tile cleaner or similar citric acid-based product. Citric acid is not considered a disinfectant although it may have weak disinfecting action. However, this cleaner has been used successfully in the City of Santa Monica to clean all public restrooms and showers, including outdoor facilities used by Santa Monica's large homeless population. According to staff, both custodial workers and the public are pleased with the level of sanitation and the smell ofthe facilities. BMP: Spot cleaning of body fluids. Previously used: chlorine bleach (5.25% sodium hypochlorite) for fast, effective cleanup and disinfection of spills of potentially pathogenic organic materials such as blood and human wastes. We do not recommend any change in this procedure, in accordance with City policy on prevention of blood-borne pathogens and general worker safety considerations. BMP: Toilet Bowl Cleaner. Previously used: Pine Odor Disinfectant, containing quaternary ammonium chlorides and pine oil, for basic sanitation, and a hydrochloric acid-based cleaner for removal of hard water deposits. Suggested replacement: Naturally Yours Toilet Bowl Cleaner, or other citric acid based cleaner. The cleaner may need to be left on longer or used more frequently to remove hard water deposits. BMP: Drain cleaner. Currently used: an enzyme based product which digests organic matter that may block drains if allowed to accumulate. Suggested alternative: Continue current practice. This is the safest type of product available for prevention and clearing of blocked drains. BMP: Cleaner for gymnasium floors. Currently used: a vinegar/water solution. Suggested cleaner: continue current practice. 18 , \b- Ie \ 2.2.4. Swimming Pool Chemicals The Recreation Division of Parks and Recreation has responsibility for maintaining the City's two swimming pools, at the Parkway Memorial Recreation Center and at Lorna Verde. Current Use/Issue: Pool Chemicals Several major changes have already been made to use safer substitutes that will effectively disinfect and maintain pH balance in the pools: . Chlorine gas: replaced with chlorine bleach. . Muriatic acid: replaced with CO] at one pool so far, with plans to introduce it at the other pool as well. BMP: Test feasible alternatives for chlorine-based disinfection available for public pools and compatible with health codes. 2.2.5. Pesticides J. Current UsefIssue: Phase out priority pesticides for use in landscape and recreational areas. Of the pesticides used by andfor the City ofChula Vista, only Drione is considered low enough in risk that the BMP is to continue using it indefinitely. For all the remaining pesticides the goal should be to ultimately phase them out. Five pesticides that are high priority for phaseout are: . 2.4-Dichlorophenoxyacetic (2,4-D) acid -- found in Trimec and Weed-B-Gone . Diazinon . Dursban . Tempo . Torus 2E BMP: Products that contain 2,4-D be phased out. Other listed pesticides should have the highest priority for implementation of alternatives to reduce or eliminate their use. BMP: An Integrated Pest Management (IPM) training program be implemented to provide permanent, least-toxic pest control for the City. The IPM program is proposed to consist of the following elements: J. Identification of all potential pests 2. Establishment of monitoring guidelines for each pest 19 \6-b~ 3. Establishment of injury levels and action thresholds for each pest species before doing any treatment 4. Creation of a recordkeeping system 5. Development of a list of acceptable management strategies for each pest. The existing list of BMPs for pest control may be used as a reference in developing this list. 6. Development of specific criteria for selection of pest management methods. 7. Development of guidelines to be followed each time a pesticide is used. 8. Development of a list of resources 9. Establishment of procedures for review and update of the IPM program. 2.3 GENERAL COMMENTS The following information is offered to assist in development of acceptable management strategies to be included in Chula Vista's IPM program, and to provide guidance during the interim period before the IPM program is implemented. Pest problems affecting the City of Chula Vista's structural, landscape, and open space properties include: indoor and outdoor ants, roaches, fleas, mice, rats, gophers, squirrels, skunks, mosquitoes, pigeons, termites, weeds, and plant pests. The following information provides general guidelines for managing these pests in the least toxic manner. Indoor Ants: Indoor ants come indoors for the following reasons: . They are lured by food. . They seek water when weather is hot. . Construction disturbs their nests . Heavy watering or rain floods their nests. Guidelines: . Sanitation and food storage that excludes ants. . Caulking and sealing structural cracks where ants enter. . A one-time treatment of boric acid inside the walls needs to be done. . Avoid watering outdoor vegetation on days when City Council meets or when there are other public meetings . Trim all vegetation away from structures. Ants use tree branches as bridges to get inside of buildings. . If their nest/s can be located, place a bait of two tablespoons each ofcommeaI and boric acid moistened with soy oil down into the nest. . If ants get into indoor areas, wipe up the areas with white vinegar. This eradicates the pheromone system by which ants communicate to the nest about their food source. 20 Ib-63 Outdoor Ants The most common types of ants, Argentine ants, are attracted to sweet and sticky foods. They also like sweet sap in some foliage. Guidelines: . Sanitation is crucial. Sidewalks must be kept clean ofthe attractive sticky stuff. If treatment is needed, apply a light soap spray or white vinegar spray (half vinegar, half water) to discourage them. . Avoid foliage that attracts ants because of sap or aphid infestation. . If ants do infest foliage, spray foliage with mild soap spray and then apply vegetable-based Tanglefoot or other sticky barrier around the base of foliage to keep ants from traveling up branches. Cockroaches Cockroaches have been around for 400 million years and are hardy, adaptive insects. Toxic pesticide sprays do not kill all of them; survivors infest walls, procreate, and return in three to four weeks. Hence, common sense control practices are needed. Guidelines: . Sanitation and food storage that exclude cockroaches. . Caulk and seal structural cracks and crevices. . Apply boric acid into walls, a one-time-only activity. . Set out nontoxic sticky traps, which are good for up to three months, in kitchen and bathroom areas. Commercially, these traps are available in grocery stores: Black Flag Roach Motels are one brand that is generally available. See Resources for other brands. Fleas Besides being annoying, fleas can cause disease and allergies. Spraying toxic pesticides is futile in controlling them and can be hazardous to your health. Guidelines: . Indoor fleas are best controlled by frequent vacuuming of carpets and upholstery. Stearn cleaning of rugs or carpets provides effective emergency treatment if there is a serious flea infestation. . If these procedures are insufficient, use an insect growth regulator in a liquid spray formulation to prevent adult flea emergence. Desiccating dusts such as silica aerogel or diatomaceous earth are also effective non-toxic flea controls for indoor areas. Use a dust mask when applying either type of dust. 21 \6 - bY . Fleas in outdoor areas can be controlled by either drying out or heavily watering the area. Insecticidal soaps or pyrethrin-based insecticides may be needed in addition. . Some professional pest control companies have additional methods at their disposal, such as borate insecticides for carpets and devices that use heat or cold to kill fleas. Termites . Most termite problems can be managed with spot treatment of dehydrating dusts, wood replacement, and other least toxic practices. These methods usually require the services of a least toxic pest control company. Weed and Plant Pests The presence of weed and plant pests, which includes fungus diseases, are symptoms of poor landscape design: inappropriate plant and grass selection; poor landscape practices such as over- or underwatering, lack of aeration; inappropriate mowing height; use of synthetic fertilizers and toxic pesticides which sterilize the soil, kill natural predators, and weaken grass and plants making them susceptible to pests; and lack of knowledge about plant care. These problems are not restricted to Chula Vista but are universal. Until IPM for lawns are fully implemented, Fusilade will be needed on spot basis for crab grass. Better landscape design and the introduction of grasses that will crowd out crabgrass, the use of organic fertilizers, and a regular soil aeration program are the needed changes to reduce the crabgrass problem. Resources for BMPs . A reference for landscape personnel is: Common Sense Pest Control. It is $39.00 from the Bio- Integral Resource Center in Berkeley, CA. It can be ordered by calling: 1-510-524-2567. . Educational consultants in least toxic pest control practices or Integrated Pest Management (IPM) are recommended for landscape as well as structural pests. Locally, Dr. Kenuel Ogwaro is available for IPM education. He can be contacted at: EcoCare Co.- 672-2810. In California, Bio- Integral Resource IPM consultants and trainers can be contacted at: 510-524-2567. . Companies in San Diego County which provide nontoxic or least toxic termite control include: Tallon Termite and Pest Control (freezing method using liquid nitrogen) - 236-0304; Lloyd's Pest Control (heat method) - 298-9865; The Termite Inspector (microwave method) 562-6941. . Pigeons: Albert Green, U.S General Services Administration, Integrated Pest Management Director for the Federal Government, is a pigeon control expert with the best in pigeon control information and films. He can be contacted at: 202-708-6948. . To order non-toxic traps in bulk: Contact AgriSense Co.in Fresno, CA (1-209-276-4250) or 22 1-6-65 Seabright Laboratories in Emeryville, CA (1-800-284-7363). . Vectors. Mice, rats, gophers, squirrels, skunks, and mosquitoes are known as vectors. San Diego County has the best least-toxic Vector Control Department in the country. San Diego County and all 18 cities participate financially in a regional vector control program. They have educational films available to all on vector control and since cities pay for vector control services, call on them for least toxic vector control guidance. Vector Control can be contacted by any city or any city or county resident at: 338-2170. 23 \6- 66 3.0 Municipal Pollution Prevention Program Description 3.1 HISTORY AND SCOPE OF PROJECT The Municipal Pollution Prevention Program (MPPP) is a model program designed by EHC to reduce the use of toxic materials by non-industrial users. There has been much effort at the manufacturing and household levels over the past decade to reduce the use and disposal of toxics. There are also vast numbers of small businesses, offices, and municipalities where toxics --- in the form of pesticides, herbicides, etc.. are used on a daily basis for cleaning, pest control, building a..rld fleet maintenance, and other operations. These institutions have mostly been ignored in the push to reduce our society's use oftoxic materials, yet people work in them and visit them; their health and well-being on the job potentially affected by the workplace environment. Govemmental entities such as municipalities utilize materials that may be toxic; thus pointing to the opportunity of becoming a leader in pollution prevention. The MPPP consisted of three phases: an audit of current toxic materials use; a pilot pollution prevention project at one location; and development of best management practices to reduce toxics use. The City of Chula Vista MPPP was funded by a $30,000 grant from the Jesse Smith Noyes Foundation to the Environmental Health Coalition. 3.2 ENVIRONMENTAL HEALTH COALITION The Environmental Health Coalition (EHC) was contracted by the City to examine the use of potentially toxic materials. These materials are identified by OSHA and CalOSHA as requiring Material Safety Data Sheets (see page 5). EHC was responsible for recommending alternative materials that would reduce the risk to both workers and the general public. EHC was responsible for recommending alternative materials that would reduce the risk to both workers and general public. EHC is a San Diego- based non-profit environmental education and advocacy group, founded in 1980. The Coalition is dedicated to the prevention and cleanup of toxic pollution that threatens human health and the environment. To achieve this, EHC: . Promotes environmental, social, and economic justice among all people; . Organizes with communities to increase their empowerment; . Advocates institutional, policy, and social change, and; . Educates to increase understanding oftoxic hazards. EHC has worked with a variety of agencies to reduce and/or eliminate the use of toxic materials in order to prevent potential adverse health effects on workers. These institutions have included a large hotel, a fast-food restaurant, many schools in San Diego County, a large church, and three day-care centers. In 1988, the EHC began a Safe Substitutes project as an element of community education for the San Diego County Household Hazardous Waste Program. The Safe Substitutes project produced a series of educational materials on less-toxic alternatives for households. 24 \6-bl 3.3 THE CITY OF CHULA VISTA The City of Chula Vista has seventeen major departments. A total of approximately 1000 full time equivalent staff are employed within these departments. The organization of the departments and the toxic materials and substitute materials used by them are outlined in the Toxic Audit section of this report. The EHC selected the City for a Municipal Pollution Prevention Project (MPPP) based on the City's demonstrated enthusiastic commitment to the reduction and/or elimination of pollution caused by materials used at its facilities. Virtually every department surveyed by the EHC during the course of this project had already made changes, many of them major, in the use and storage of hazardous materials. During the course ofthe year, the City continued to demonstrate its commitment to least toxic operations. These changes are described in detail under the Toxic Audit section of this report. A parallel process to the MPPP that has also addressed the City's use of toxics is the development of Chula Vista's Stormwater Permit. The permit was issued by the Regional Water Quality Control Board in 1990 to the 18 cities in San Diego County, to the County itself, and to the Unified Port District. Each of these agencies is a co-permittee and, as such, is required to develop stormwater management plans to reduce the non-source pollutants entering their stormwater systems, by: . Development of a monitoring program for both dry weather and wet weather flows into the storm water system; . Development of an illicit connection/illegal discharge detection program; . . Development of both educational and structural best management practices for the reduction of pollutants in storm water; . Development of the authority to implement and enforce stormwater pollution control programs. In Chula Vista, the Engineering Department has responsibility for implementing the permit. The BMPs developed by the EHC for the City of Chula Vista are not a part of this permit, but complement and enhance the work done by the City Engineering staff. 3.4 COSTS OF USING TOXICS There are three categories of costs incurred by the use of toxic materials: 1. The cost of the material itself, which in many cases is higher than the cost of non-toxic alternatives 2. The cost of health care and lost productivity due to worker exposure to toxic materials 3. The cost of managing toxics, including environmental regulatory fees, hazardous waste disposal costs, costs of insurance and liability, and time spent complying with hazard communication and reporting requirements 25 l6- 6'i!: It is important to consider all three of these factors, so that the true costs of using the product can be incorporated into purchasing decisions. Therefore, an immediate goal is to develop specifications for toxicity criteria and purchasing products. 3.5 POLLUTION PREVENTION 3.5.1 Definition of Pollution Prevention Pollution Prevention is defined as using the safest materials as efficiently as possible to reduce human health exposure and environmental risk. The Massachusetts Toxics Use Reduction Act is an example of pollution prevention legislation (Massachusetts Toxics Use Reduction Institute, 1993): "Toxics Use Reduction means in-plant changes in production processes or raw materials that reduce, avoid, or eliminate the use of toxic or hazardous substances or generation of hazardous by-products per unit of product, so as to reduce risks to the health of workers, consumers, or the environment without shifting risks between workers, consumers, or parts of the environment." There are four recognized techniques applicable to the City which meet this definition: . Input substitution - using nontoxic or less toxic raw materials instead of highly toxic ones; . Production unit modernization - replacing or upgrading production equipment and technologies. . Improved operation and maintenance - implementing better housekeeping, system adjustments, control equipment, etc., to improve efficiency. . Recycling within production process - installing closed-loop recycling of certain substances as part of the process line. Product substitution is the method relied upon most in development of Best Management Practices (BMPs). Opportunities for improved operation and maintenance, and upgrading of equipment and technologies are potential toxic reduction techniques; for example, the City has sealed concrete floors to reduce the need for certain harmful cleaners, or investing in well-designed weed whackers to reduce use of herbicides. 3.5.2 Benefits of Pollution Prevention The benefits of toxic use reduction for cities include: . A safer, healthier work environment for municipal staff and the visiting public; . Better indoor air quality for staff and public; . More economical cleaning and pest control; 26 J6-69 . A contribution toward improved environmental quality; . Reduced regulatory burden; . Encouraging the growth of businesses which provide least toxic pest control, cleaning services, and products. Municipalities present opportunities for significant quantity reduction oftoxic materials, as well as ways to make workplaces safer for staff and visitors. Government agencies are also in a position to provide leadership for their communities, by example and by procurement of less-toxic materials and services from private businesses. 3.5.3 Obstacles to Implementation Because switching to products that are non or less toxic require use of new products and new ways of using these products, EHC and staff have evaluated and acknowledge the following obstacles to implementation that must be addressed and overcome in switching to 'least toxic' alternatives. These include: . Difficulties in procurement - municipalities typically purchase garden and cleaning supplies from one supplier who can provide the materials in large quantities. Some alternative cleaning and pest control products are not carried by janitorial supply outlets; they may have to be obtained separately. . City staff or contractors may be fluent in Spanish, Tagalog, or other languages, whereas product labels and other materials are mostly in English. Management will need to take extra measures to assure an understanding of use of new product instructions and information, and to provide, where possible, into the appropriate languages. This will facilitate their use as well as help communicate product risk and safety to the workforce. . Additional training - least toxic pest control requires knowledge of Integrated Pest Management (IPM) which prescribes evaluation of mechanical and biological controls and nontoxic chemicals before using a toxic material. Also required is some knowledge of the pest. Some IPM training for landscape and park maintenance will result in a smoother transition to better alternatives, and will provide staff with a greater understanding of integrated pest management and its relationship to the public's health and well being. . Government specifications - in certain cases, government agencies working with the City have prescribed products to be used, particularly in cases where the City maintains parkland owned by the Port District. For example, the Port District requires the City to use a particular pesticide at Marina Park which can be substituted for a less toxic alternative. In the absence of specifications that contain environmentallhealth criteria, price considerations may be the primary determinant; the least expensive product will be purchased rather than the most environmentally benign product. 27 16-lD . Contracted work _ In situations where the City subcontracts pest control and/or cleaning, the contractors must be trained in integrated pest management and the contract conditions specified. None of these problems are insurmountable. The key to successfully adapting new products and routines is the involvement and support of all the staff. "Making the switch" is a team effort that requires enough flexibility to allow for some experimentation. 3.5.4 Making the Switch Although each department has a unique configuration of functions, materials, staff, and routines, the basic steps of pollution prevention will become standard as products are switched:: . Identify the hazards of each material; . Categorize the materials that most need to be eliminated or reduced; . Identify alternative products and techniques; . Create a plan for implementing alternatives. Alternatives may be tried a few at a time throughout the city, or a particular facility may be used to pilot test the substitutes; . . Evaluate and problem solve. How well do the alternatives work? What obstacles exist? Review of the alternatives should continue on a regular basis until use of the new products and techniques is routine. . 28 Ib-l I. 4.0 TOXICS AUDIT The Toxics Audit was the first stage of the MPPP conducted for the City ofChula Vista. This part of the project began in August 1993. The purpose of the audit was to establish baseline information on toxics used in the City, and to pinpoint opportunities for reduction or elimination of particular uses of materials. 4.1 CITY STRUCTURE The City of Chula Vista has seventeen major departments. They are: . Administration . Bayfront Conservancy (Nature Interpretive Center) . Building and Housing . City Attorney . City Clerk . City Council . Community Development . Finance . Fire . Management Services . Parks and Recreation . Personnel . Planning . Police . Public Works Each ofthese departments contains one or more divisions. The Finance, Fire, Parks and Recreation, and Public Works Departments were found to be the departments responsible for the majority of toxic materials purchasing and use; they were also the primary ordering departments. Departments may purchase small amounts of products with petty cash, but standard supplies are ordered from the Purchasing Department, which makes the purchase and may store bulk quantities at the City's Operations Center. Materials are grouped by Department and Division, and also by their primary uses: adhesives; cleaners; fuels; paints/coatings; pesticide; print/photo chemicals; and vehicle maintenance materials. 4.2 METHODOLOGY EHC focused their attention on those products being used by the city for which Material Safety Data (MSDS) sheets are required. These are the materials deemed occupational hazards, a broad category which seemed very likely to also include the materials that may present a hazard to the public or the environment. We found that every department had lists of materials for which MSD sheets are required 29 l6-1:2... and that the MSDS sheets themselves are a useful source of information about the ingredients and hazards.3 Not all of these materials are necessarily of great concern - as is the case with pink lotion soap. Others may be more dangerous, such as the pesticide Trimec, which contains 2,4-0 used at Marina Park. EHC staff interviewed department heads and supervisors to determine which materials were currently in use and to obtain estimates of the quantities and costs of the materials. A draft audit was then sent to each department for additions and corrections. A final draft was circulated in September, 1994. The Public Works divisions, in particular, have been commended for their efforts to complete the audit. 4.3 TOXICS INVENTORY Hazardous materials, such as those used by the City of Chula Vista, can be classified many different ways, e.g., by hazard, by use, or by department. The Appendix lists the materials inventory by use of material (Appendix A), the hazards of the material (Appendix B), and a comparison of amounts used per year versus amounts stored (Appendix C). 4.4 HAZARDS OF TOXIC MATERIALS IN USE The incidence and severity of harmful effects of toxic materials depends on two primary factors - the chemical characteristic and toxicity, and the method by which it is used. For example, is the material used in large amounts? Is it sprayed? Is it heated? Is it used outside or in a well-ventilated location inside? Does it come into contact with skin? Does it generate dust or vapors? Harmfulness to the environment depends on the hazardous characteristics of the material which includes toxicity, reactiveness, ignitability and corrosiveness. It also depends upon the use ofthe material. Is it allowed to evaporate or run into storm drains? Is it contained? Is it a potential threat to wildlife? Specifics on the type of products and their potential effects are listed in appendix 2. 4.4.1 Hazards of Maintenance Materials A variety of materials are used in the janitorial, public works and park and recreation departments for various maintenance operations. Maintenance materials include solvents, lubricants, fuels, automotive fluids, cleaning supplies, and such. These materials have been catalogued and recommendations are listed in the Environmental Health Coalition's White Paper to the City in Attachment 2. MSDS lists only OSHA-designated Hazardous Substances. Trace ingredients known to be present in a product, (i.e. benzene) may not be listed. Information on the health effects of specific materials is often not available or incomplete for categories which include reproductive, developmental, and immune effects. 30 Ib-,.3 4.4.2 Hazards of Pesticides Introduction A pesticide is a generic name for chemicals meant to control and/or eradicate a pest. Pest refers to something that occurs where it is not wanted. Large classes of insect and plant pests have their own specific names: insecticide (insects), herbicides (weeds), rodenticides (rodents), acaricides (mites and ticks) etc. The City of Chula Vista uses primarily insecticides and herbicides. Basic information regarding these materials is summarized below: . Information about acute, or direct, effects of pesticide exposure is the primary information existing today. Long term health effects and the effects of chronic, low-level exposure are mostly unknown or cannot be accurately determined because of the lack of health data. Therefore, all health effects information for the purposes of this report have been obtained from the product MSDS sheets designed to prevent acute health effects. Additional comments regarding health and environmental effects from sources other than the MSDS are included in certain instances. . Pesticides are used for the following pest problems: ants, silverfish, roaches, fleas, termites, weeds, and plant diseases. . None of the active ingredients used in the City's pest control has been tested for the full range of health effects required by federal law. . All of the product labels wam to keep the product out of the reach of children, not to swallow it, and not to contaminate water with the product. . Pesticides can actually cause pest problems by killing beneficial insects. This leads to an increase of unwanted insect pests, called pest resurgence. 31 11o-,L\ The following table lists the pesticides used by the City. All are either insecticides or herbicides: PESTICIDE AMOUNT/ YEAR DIVISION OR CONTRACTOR DIAZINON GRANULES (I) 10 LBS STATION #6 DURSBAN (I) 2 OZ. STATION #6 TRIMEC (H) 12 GAL PARKS SURFLAN (H) 9 GAL PARKS ROUNDUP (H) 70 GAL PARKS ROUNDUP (H) 91 GAL PARKS, BLUE SKIES CONTRACTOR DIAZINON 5 G (I) 458 LBS PW CUST, COMM OF CA. CONTR DURSBAN L.O. (I) 1536 GAL PW CUST, COMM OF CA. CONTR DURSBAN sow (I) 20 GAL PW CUST, COMM OF CA. CONTR DURSBAN WP (I) 50 GAL PW CUST, COMM OF CA. CONTR DRIONE D (I) 21 OZ PW CUST, COMM OF CA. CONTR TEMPO (I) 5 GAL PW CUST, COMM OF CA. CONTR TORUS 2E (I) 1 GAL PW CUST, COMM OF CA. CONTR EMPIRE (I) 1 GAL PW CUST, COMM OF CA. CONTR ROUNDUP (H) 10 GAL PARKS, RC'S LANDSCAPE RONSTAR (H) 150 LBS PARKS, RC'S LANDSCAPE FUSILADE 2000 1E (H) 1 GAL PARKS, RC'S LANDSCAPE SURF LAN (H) 1 GAL PARKS, RC'S LANDSCAPE WEED-B-GONE (H) 96 OZ PARKS, RC'S LANDSCAPE POAST (H) 100 OTS PARKS. RC'S LANDSCAPE H = Herbicide I = Insecticide Insecticides The City ofChula Vista contracts with a local firm to provide pest control for City administration buildings, recreation centers, libraries, and fire and police departments. Insect problems for which pesticides are applied are fleas, ants, roaches, and silverfish. The inside and perimeters of most City administration buildings are sprayed once a month. Pesticides are bought off the shelf and used occasionally at the fire stations to control ants and cockroaches. Herbicides Landscape maintenance is assigned to the Parks Division ofthe Parks and Recreation Department. Parks staff provide weed management on landscaped areas. The Parks Division contracts with two companies for weed control in the open spaces. Weedkillers used by both the Parks Division and the contractors are: RoundUp, Surflan, and Trimec. One of the two contractors also applies Ronstar, Fusilade, Poast, and Weed-B-Gone. A comprehensive list of all pesticides used by the City, with their application, formulation, and health 32 Ib-l'5" hazards is presented in Appendix D ofthis report. 4.5 ANALYSIS OF AUDIT 4.5.1 Toxic Totals The City uses a total of2.2 million lbs. oftoxics a year with an annual cost of approximately $357,000. TABLE 1 CHULA VISTA TOXICS AUDIT TOTALS, BY TYPE OF MATERIAL Type of Number Total Cost per Material of Pounds* Year Items Adhesive 3 359 $375 Cleaner 37 6,206 $12,247 Coating 20 83,800 $68,058 Lubricant 7 225 $527 Other** 17 92,817 $37,547 Pesticide 24 15,697 $9,331 Print 13 586 $4,099 Vehicle 21 2,013,782 $224,797 TOTALS 142 2,213,472 $356,981 . Gallons converted to pounds at 8.34 lbs. per gallon. "Other materials include pool chemicals, water cooling system chemicals, propane and oxygen, highlighting pens and markers, etc. The single largest quantity toxic material used by the City is gasoline: about 186,300 gallons per year. Gasoline has respiratory effects if not vented properly. It is on the proposition 65 list as a carcinogen due to the benzene in the gasoline. Thus it is a high priority for pollution prevention efforts. 33 16-1'-0 Other materials used in large amounts include automotive products - diesel fuel and motor oil - and paints. These materials do not currently have substitutes. The City has already switched almost entirely to water-based paints, as noted below. 4.5.2 Changes Already Made The audit reflects the use oftoxics by a City that has already implemented pollution prevention in many of its practices and products. The following is a summary of changes undertaken in recent years to reduce or eliminate use oftoxics: . Street paints are all water-based, not solvent-based; . Street paints no longer contain leaded pigments; . Graffiti removers are citrus based solvents (terpenes), not chlorinated hydrocarbon solvents; . Cement and asphalt: are now bought pre-mixed, so that aggregate mixes and calcium chloride are no longer stored on site. This also eliminates the dust hazard of storing and mixing these materials; . Vehicle parts are purchased already painted. This eliminates the use and storage of auto enamels and reducers on site; . Chlorine gas pool cleaner has been replaced with sodium hypochlorite, a much safer form of chlorine. Sodium hydroxide for alkalinity control has been phased out. Carbon dioxide (CO,) is being used at one pool to replace muriatic (hydrochloric) acid for pH control. This has been a successful trial and CO, will replace muriatic acid at the other pool, completely eliminating this corrosive liquid; . The sewer lift degreaser is now citrus based instead of a petroleum based product; . Building paints are water-based; . For auto parts cleaning, the City is now using the reformulated Safety-Kleen solvent in place of Safety-Kleen 105, which contained from 0.5 to 1.0% each of xylene, ethylbenzene, toluene, 1,1,1- trichloroethane, and perchloroethylene; . Vehicle air-conditioning Freon is now recycled by a mobile service business. This is the best option (besides no air conditioning) until a substitute refrigerant that works in cars is developed for commercial use; . Drain openers are enzyme based instead of sulfuric acid based; . Urinal blocks (contained p-dichlorobenzene) have been eliminated; . The cleaner for gym floor is a solution of vinegar and water. . Simple Green is used instead of the solvent based cleaner Instromet for cleaning parking meter parts. Also, EHC assisted the City with the selection of Tallon Termite for the treatment of the City Administration building. This firm used liquid nitrogen, a non-toxic method which uses cold temperatures to kill termites. 34 16-1, 4.5.3 Exceptions One type of material used by virtually every department is penetrating lubricant such as WD-40, a petroleum distillate solvent. This represents a high priority for phase-out, but as yet no substitute product or process has been identified. 4.5.4 Priorities for Phase-Out 1. Use reduction: It is recommended that materials which are highly toxic and environmentally damaging chemicals be phased out, where possible. These include certain pesticides, carcinogens, and chlorinated hydrocarbons, especially Trimec, Polytech MAB-IO, and Blankrola. 2. Quantity Reduction: It is recommended that the quantity oftoxic materials in use, especially regarding auto fuels and related materials be reduced. The City's ongoing interest in utilitizing feasible alternative fuels for automobiles will assist this effort. 35 \6-l~ TABLE 2 CHULA VISTA TOXICS AUDIT: MATERIALS THAT CONTAIN A CARCINOGEN MATERIAL CARCINOGEN USED BY AMOUNT COST PER YEAR PER YEAR USED Trimec 2,4- D Parks Division 12 Gal. $280 Weed-B-Gone 2,4-D Parks Div., RC's 1 Gal. $5 Landscape Gasoline Benzene** Equipment Maint. 186,300 Gal. $167,000 Safety-Kleen Benzene, trace*** Equipment Maint. 30 Gal. NA Premium Solvent Stamark Brand Benzene Street Maint. 10 Gal. $200 Primer P-46 Polytech MAB- Methylene chloride Building C & R 6 Cans $72 10 Blankrola Perchloroethylene Print Shop 25 Gal. $230 *These compounds are listed on the State of California Director's List (see page 5-6). Information on ingredients comes from Material Safety Data Sheets. **Gasoline also contains toluene, listed on the Prop. 65 list as a reproductive toxin. *** The reformulated Safety-Kleen Premium Solvent does not list benzene as one of the Hazardous Ingredients on the MSDS. However, the solvent may contain a detectable amount of benzene, at a level of 0.4 mg/I or less. The solvent may also contain detectable amounts of toluene. (Material Safety Data Sheet #6608, revised 2/94, Safety-Kleen Corp.) NA = Information not available. 36 Ib-I~ TABLE 3 CHULA VISTA TOXICS AUDIT: MA TERIALS THAT CONTAIN A CHLORINATED HYDROCARBON CHLORINATED USED BY AMOUNT/ COST/ MATERIAL COMPOUND YEAR YEAR Trimec 2,4-D Parks Div. 12 Gal. $280 Weed-B-Gone 2,4-D Parks Div., RC's 1 Gal. $5 Landscape CPVC Solvent CPVC resin* Sewer Div. 8 Gal. $75 Cement WD-40 Chlorinated Solvent Equip. Main!. 8 Gal. $80 Brakleen TCA** Equip. Main!. 4 Gal. $69 Crown Extra HD Chlorinated Street Main!. 5 Gal. $40 Soluble Oil paraffins Grease TCA Building C & R 6 Tubs $60 Polytech Lub. CFC, TCA Building C & R 6 Cans $72 Compound Polytech. MAB- Methylene Building C & R 6 Cans $72 10 Chloride, TCA Thompson & TCA Building C & R 30 Cans $135 Formby Triflow Belt Dressing Aerothene* * * Building C & R 10 Cans $30 Blankrola Perchloroethylene Print Shop 25 Gal. $230 Deglazing TCA 96% Print Shop 5 Gal. $183 Solvent Chlorinated compounds persist in the environment and are known to interfere with the reproductive capacity of many animal species, including humans. Recent research links them tentatively to human breast cancer as well. (Davis, D.L., Bradlow, H.L., Wolff, M., Woodruff, T., Hoel, D.G., and Anton-Culver, H., 1993. "Medical Hypothesis: Xenoestrogens as Preventable Causes of Breast Cancer." Environmental Health Perspectives. Vol. 101 (5), pp. 373-377.) 37 \b-'30 All ingredients information is from Material Safety Data Sheets. · Chlorinated polyvinylchloride resin. ** TCA = I, 1,1- Trichloroethane, also known as methyl chloroform .** Aerothene is a trade name for a group of chlorinated solvents (Hawley's Condensed Chemical Dictionary, II th Ed., 1987). 4.5.5 Financial Analysis Direct Cost Savings The most clear-cut cost savings result when particular uses of toxics are simply eliminated, for example, the use of "air freshening" urinal blocks which contain the carcinogen para-dichlorobenzene. Elimination of 2,4-0 herbicides would provide a simple cost saving; the alternative is a decision that clover growing on lawns in City parks is acceptable. Similarly, implementation of integrated pest management for structural pest control can provide significant savings in materials costs. Typical pest control spray services cost up to several hundred dollars per year, depending on the size ofthe buildings to be sprayed and frequency of spraying. This cost minus the cost of relatively inexpensive alternative pest control products represents the cost savings available from a switch to less toxic pest control. Example: Minimal monthly building perimeter spraying for ants starts at $12 and goes up according to building size. Applying boric acid powder to cracks and crevices where roaches live and ants enter then caulking and sealing them would cost about $200 for a building with an approximate area of 4,000 square feet. Control for such a method generally lasts about 25 years. This is a big savings in a very short period of time - the monthly spray service would come to $3,600 in this time, assuming no price increases. . Use of generic vinegar, ammonia, and soap or detergent in cleaning formulations can offer great savings over commercial cleaners that use these same ingredients as the active materials. In a sample cost comparison, one gallon ofVons white vinegar, enough to make two gallons of window cleaner, cost $2.18. In contrast, two gallons ofVons Window Cleaner cost $9.22. Improvements in operations and maintenance, and better housekeeping, also result in cost savings. An example is good inventory control, so that products do not get too old and have to be thrown out. Keeping the lids on volatile liquids, such as parts cleaning solvents and paints, reduces losses due to evaporation. Purchase of good mechanical weeding equipment such as weed whackers reduces the costs of both labor and herbicides . used to control weeds. Also, if alternative materials are used, the City could capitalize on a reduction of paperwork, since the use of toxic materials is accompanied with a regulatory reporting process, whereby most materials are tracked, recorded, and catalogued for the State of California and the federal govemment. No Net Changes 38 . \ 6- 'b \ In other situations; a product substitution results in a safer product with neither a cost savings or loss. An example is the proposed alternate blanket wash solvent for the print shop, to replace the currently used solvent that contains perchlorethylene, a carcinogen. Cost Increases Initial investments and increases in labor can result in increased costs, at least for the first years of a pollution prevention policy. The cost of chlorine bleach for disinfection of swimming pools, for example, is greater than the cost of chlorine gas, used previously, because more is needed. In the San Diego Unified School District, the results of using IPM instead of conventional pest control have been mixed. Indirect Costs A category of indirect costs are those due to potential workers-compensation related injuries, illnesses, and lost productivity because of employee exposure to toxics on the job. Statistics for City of Chula Vista employees are not available, but figures compiled by Cal-OSHA for the state show a significant number of state employees suffered work injuries or illnesses due to contact with hazardous materials (radiation, caustics, toxic or noxious substances). This included 136 workers in street construction/maintenance, and 100 in parks and recreation. (1991 California Work Injuries and Illnesses. Department ofIndustrial Relations, Division of Labor Statistics and Research, San Francisco.) These statistics are compiled from reports submitted to Cal-OSHA from accidents or illnesses that required one or more full days off the job. The statistics do not cover workers who were "patched up" at work or went home early on their shifts or chronic illnesses, such as respiratory disorders that may have been caused or compounded by work exposures. It is beyond the scope of this project to compile data on Chula Vista's worker health, accident, and absenteeism rates. The available State statistics show that a significant, continuing toll is being taken on workers from exposure to toxics on the job. Adverse health effects to workers could be as simple as rashes, sinus infections, headaches, and dry, irritated skin. The toll shows up in the city's budget in lost productivity and worker's compensation claims. 4.5.6 Storage of Materials A simple analysis was done to examine whether materials storage may pose concerns. Analysis included both amounts used and amounts stored to analyze risks of on-site storage and the potential for reductions. The ratio of stored to used materials is presented in Appendix C. Only a few cases stand out where storage appears to be in excess of the amount of material needed on-site: these include a large supply of propane stored by Equipment Maintenance, and 11 years worth of grease, a 2 year supply of chlorine bleach and Super-SOO cleaner stored by Custodial Services. Chlorine bleach will continue to be used, but only on an occasional basis. This is a highly reactive material to be storing for long periods of time. Also, Street Maintenance has a 2-year supply of Stamark Primer P-46, which contains benzene. 39 \6- ~ l- This crude analysis assumes that any storage of less than a year's worth of a material is acceptable. A more refined analysis would look more closely at the flow of materials to determine whether there is potential for "just in time" delivery of toxic materials. "Just in time" delivery is the system favored by industry to reduce the hazards and regulatory burden of storing large quantities oftoxics on site. 5.0 PILOT PROJECT 5.1 PURPOSE OF PROJECT The second phase of the Municipal Pollution Prevention Project was a pilot pollution prevention project. The purpose of the pilot project was to test and evaluate pollution prevention strategies for a limited period of time at one location in the City. Successful strategies could then be adapted for use Citywide. 5.2 METHODOLOGY Criteria for selecting the site for the pilot project included: . A location where both pesticide and non-pesticide alternatives could be tried; . The site is used by the public on a daily basis; . Supervisors and staff should be willing to experiment with new products and techniques in their daily work, and to document their conclusions. Early in the project, the City parks and recreation centers were identified as potentially good sites for the pilot project because they are heavily used by the public, and maintenance of the buildings, pools, and grounds requires a wide variety of pest control, cleaning, and pool chemicals. An initial meeting with Barry Edwards, Supervising Custodian, resulted in the tentative selection of Parkway Memorial Recreation Center for the Pilot Project. Further discussion confirmed that the landscape maintenance staff, headed by Jim Davis and Sal Cuellar, were willing to participate in the pilot. Parkway was selected for the 8-week project. Paul Taylor of the private pest control company Commercial of California also participated in the project; this company provides structural pest control services for the City. Pool chemicals were not included in the pilot project. The Pilot Project began on February 21, 1994. Prior to the project, staff were asked to comment on their feelings about the proposed venture. The response was as follows: "Let's hope it works. I'm all for it." Manuel Solario "I'm proud to try the program. Let's give it a shot and see if alternatives to toxics work." Jim Tollefson "I want cleaning chemicals to be breathable. We are canaries. Keep the canaries well." Frank Alvarado "Let's go for it." Barry Edwards "We're interested in improving the environment and eliminating all toxic chemicals possible." Jim Davis "I'm concerned about employees doing the job but concerned about the possible harmful effects of toxic chemicals to City employees and the environment. If the program is going to help the City and the public then 40 I b- ~:, let's go for it." Sal Cuellar "I believe chemical treatment should be a last resort, especially in a public facility." Paul Taylor, California Pest Control Each of the three participating staffs and their supervisors - Custodial Services, Landscape Maintenance, and Structural Pest Control- was presented with a monitoring notebook with BMPs recommended by the EHC. The staff members agreed to implement the BMPs for the duration of the pilot project and to make daily or weekly notations in the notebook of how well the BMPs worked, and any other comments they had. The pilot for the Custodial Division extended into May, so that staff had an opportunity to try samples of a new line of citrus-based cleaning products that were solicited by EHC from the manufacturer. This line of products, called Naturally Yours, from Ecolo Int. in Springfield, Missouri, is currently being used by the City of Santa Monica in all of their public facilities. 41 \6-<61-\ 5.3 SUMMARIES OF PILOT PROJECT A swnmary of the BMPS is given below. Summary of Pilot Project: Custodial Services PROBLEM OLD BMP EVALUATION PRODUCT Ink on tables Super-SOO tsp:generic or brand name Works well. Will continue to use. All Purpose Super-SOO Naturally Yours All Better for countertops, Cleaner Purpose Cleaner doors, walls. Ammonia works better for floors. Metal Polish Brite Boy Abrasive Cleaner w/o Will do the job. Metal Polish oxalic acid & ammonia, eg, Kleen King Stainless Steel & Copper Cleaner Air Bubble Gum mineral deodorizer, eg, Will use the replacement. Freshener Air Freshener, zeolite or Earth Care disinfectants product Graffiti Solvent based So-Safe citrus based Will continue to use. graffiti remover removers Glass sudsy ammonia NY Glass Cleaner Needs careful dilution: I Cleaner oz. to II oz. water works well. No odor, very easy to work with, no irritant effect on hands. Tile Cleaner, A-SOO, Cling- NY Tub, Tile, & Basin No odor, cleans well. disinfectant on Cleaner Need gloves, leaves hands sticky. More instructions needed. 42 16- ~5 :."". Toilet Bowl Pine Oil NY Clinging Toilet Bowl No vapors, easy to work Cleaner disinfectant Cleaner with, cleans well. Must cleaner; acid leave overnight on heavy based cleaner stains. Must use 2 X day for hard water to be effective. deposits Summary of Pilot Project: Structural Pest Control PROBLEM PREVIOUSLY BEST EVALUATION USED MANAGEMENT PRACTICE Ants, perimeter Diazinon granules 1. Cornmeal Frequent water; of gym 2. Pyrethrin insecticide cornmeal impractical. for quick knockdown X Spot treatment with I Tempo 2 times during 3. Sanitation pilot. Ants, sidewalk Tempo, spot Better sanitation around Spot treatment and trashcan treatment trashcans w/Tempo 2 times, not areas in children's play areas. Cockroaches, Dursban, 1. Boric acid inside Inspected 3 times. No inside gym Maxforce bait walls and crevices actions taken. Baits 2. Caulk, seal. working well. 3. Continue baits. Fleas, carpeted Dursban L.O. Diatomaceous earth Inspected 3 times, no areas applied to carpets problems. No actions taken. Ants, occasional, None Increase tolerance for Inspected 3 times, no in children's occasional ants actions taken. outside play area (sandbox) 43 \ b -~!o Summary of Pilot Project: Landscape Maintenance Pest Control PROBLEM PREVIOUSLY BMP EVALUATION USED flower beds Surflan No alternative at this Sprayed twice time during pilot project Weeds, plant & Round-Up Manual weeding Takes 2-4 flower beds hours/week vs. 2 hours/week for spraymg Insects on roses Ortho Systemic Spray mix of com oil, No pest controls Rose Spray liquid detergent, and implemented water; spray every 10 during the pilot days. project 44 Ib-<? 1 6.0 CONCLUSIONS In its one-year time frame, the MPPP project successfully fulfilled its immediate objectives: the audit was completed, pilot project took place as planned, and BMPs were developed. The project showed that a nonprofit environmental group can successfully collaborate with a city to work toward goals that are of mutual interest. Limitations of the project were the short time frame of the pilot project - many of the pest problems did not arise during the 8-week period - and the limited economic analysis that was possible. The next steps for the City of Chula Vista in pursuing pollution prevention are to: . Evaluate the need to rewrite specifications to require procurement ofleast-toxic materials . Implement Best Management Practices . Adopt a Pollution Prevention Policy with the following elements: I. Goals and Guiding Principles 2. Establishment of a Pollution Prevention Committee, with representation from each of the affected departments and divisions, to implement and oversee Pollution Prevention activities; 3. Development of specific Pollution Prevention Plans for each department which would include opportunities to reduce the use of targeted hazardous materials; such a plan should include BMPs, purchasing specifications, employee training, employer incentives for pollution prevention ideas. 45 \ 6-<6 ~ References: Hallenbeck, W.H., and Cunningham-Burns, K.M. Pesticides and Human Health. New York: Springer-Verlag, 1985. Hazard Evaluation System and Infonnation Service. The Toxicity of Glycol Ethers. State of California Department of Health Services, 1989. Johnson, J.M., Ware, G.W. Pesticide Litigation Manual. New York: Clark, Boardman, Callaghan, 1994. Material Safety Data Sheets, provided by product manufacturers. Morgan, D.P. Recognition and Management of Pesticide Poisonings. University ofIowa: Iowa Pesticide Hazard Assessment Project, 1989. US Environmental Protection Agency. Guidance documents for reregistration of active ingredients. 46 I b - <6'9 Appendix 1 Pesticide Descriptions Pesticides Used by the City ofChula Vista in 1991, 1992, and 1993: The following list of pesticides was obtained from Material Safety Data Sheets and interviews with Park and Recreation and Public Works staff. The material characteristics were developed from the reference material at the back of this appendix. Pesticide Terms Two terms used in the following product information section require explanation: Inert ingredients - "Inert" does not mean they are safe. It means they are a filler ingredient not specifically designed to kill the particular pest on the label. Inerts often make up the bulk of a pesticide product formulation and can be as toxic or more toxic than the active ingredient. Inert ingredients in pesticides can be innocuous materials such as clay or they can be toxics such as xylene, benzene, asbestos, DDT, or formaldehyde. Inerts of concern found in pesticides used by the City include: xylene and other hazardous petroleum distillates, phenol, glycol ethers, and the surfactant POEA. Adverse effects of these chemicals include nervous and immune system damage; brain, liver, and kidney damage; and reproductive hazards including testicular retardation and atrophy. (Hallenbeck and Cunningham-Bums, 1985; HESIS, 1989) LD50 (oral) - is a term used to indicate acute oral toxicity. LD (lethal dose) 50 describes the lethal dose for 50 percent of the test organisms. It is a value used in presenting mammalian toxicity, usually oral toxicity, expressed as milligrams of toxicant per kilogram of body weight. The lower the LD50 number, the more toxic the material is. Limitations ofLD50s are important to keep in mind: they offer no indication of cancer risk, reproductive hazards, or environmental toxicity; the oral LD50 does not reflect absorption rates by other parts of the body (the scalp and the scrotum being the most absorbent). The LD50 refers only to the active ingredient(s) in the product and not the inerts which can be as toxic or more toxic than the active ingredient. (Johnson and Ware, 1994) STRUCTURAL PESTICIDES I. PESTICIDE NAME: Diazinon 5G TYPE: Organophosphate ACUTE HAZARD RATING: Warning LD50: (oral) 300 mglkg PRIMARY USE: exterior ants around foliated areas of buildings APPLICATION: granules sprinkled around buildings FORMULATION: 5% active ingredient (Diazinon), 95% inerts HEAL TH: Very acutely toxic. A poison that acts upon the nervous system 47 16-90 ENVIRONMENT: through inhibiting cholinesterase production. Label warning: "Repeated exposure to cholinesterase inhibitors may without warning cause prolonged susceptibility to very small doses of any cholinesterase inhibitor." It is a known neurotoxin and suspected of being a reproductive toxin. Testing for carcinogenicity and chronic health effects is incomplete. Very toxic to fish and wildlife. Diazinon was banned for use on golf courses and sod farms in 1991 due to the large bird kills involving 23 species in 18 states. (Hallenbeck and Cunningham-Bums, 1985; Material Safety Data Sheet) 2. PESTICIDE NAME: Dursban L.O. (low odor) TYPE: Organophosphate ACUTE HAZARD RATING: Warning LD50: (oral) 135 PRIMARY USE: interior crack and crevice treatment for roaches, ants, and fleas APPLICATION: liquid spray FORMULATION: 41.5% active ingredient (chlorpyrifos), 58.5% xylene range aromatic solvent. HEALTH: Very acutely toxic. The active ingredient, chlorpyrifos, is a cholinesterase inhibitor as described above under "Diazinon." Very toxic to fish, bees, and wildlife. . Currently, the EP A is concerned about human exposure to chlorpyrifos from dietary and non- dietary sources. Human exposure data from indoor and lawn uses is being required. The American Journal of Public Health, 1990, advises not exposing children under the age of 10 months to chJorpyrifos. While more testing needs to be done to determine potential for causing cancer, reproductive harm, and environmental fate effects, chJorpyrifos has been shown to be chronically toxic to laboratory animals, farm animals, and pets. The main target organs are liver, kidney, brain, and testes. (Hallenbeck and Cunningham-Bums, 1985; Material Safety Data Sheet; USEPA) The xylene component of the Dursban formulation is a toxic solvent and reported to cause liver, kidney, and blood effects at high levels. Chronic exposure effects include: flu-like symptoms (i.e., headache, nausea), tremor, weakness, mucosal hemorrhage, vertigo, and loss of memory. Suspected effects include: fatty liver, prenatal damage, mutagenicity, and reproductive system effects (Morgan, 1989). 3. PESTICIDE NAME: Dursban 50W (Water soluble packets) TYPE: Organophosphate ACUTE HAZARD RATING: Warning LD50: (oral) 135 PRIMARY USE: exterior base of structures, expansion joints, foliated borders at footings. . 48 1.6- q \ liquid spray 50% active ingredient (chlorpyrifos), 50% inerts including wetting agents and clays. HEAL THlENVIRONMENT: see infonnation above for the active ingredient (chlorpyrifos) APPLICATION: FORMULATION: 4. PESTICIDE NAME: Empire 20 Microencapsulated Insecticide TYPE: Organophosphate ACUTE HAZARD RATING: Caution LD50: (oral) 25,000 mglkg PRIMARY USE: interior/exterior crack and crevice general pest control (i.e., fleas, ants, roaches) APPLICATION: Liquid spray (microencapsulated means the droplets are very small and the pesticide is time-released) FORMULATION: 20% active ingredients (chlorpyrifos), 10% petroleum solvents, and 70% inerts HEAL THlENVIRONMENT: same effects as described above for chlorpyrifos and petroleum solvents (see xylene). 5. PESTICIDE NAME: Drione TYPE: Amorphous silica ACUTE HAZARD RATING: Caution ENVIRONMENT: none established. Believed to have very low oral toxicity. interior crack and crevice and void application for roaches Dusting 40% Amorphous (i.e., non-crystalline) silica gel, 49% petroleum distillates, 10% piperonyl butoxide, 1% pyrethrins While the active ingredient is considered nontoxic, it is a dust and as such can cause respiratory irritation. Suspected effects of piperonyl butoxide include cancer, kidney damage, and reproductive harm. Pyrethrins are a natural substance derived from chrysanthemum flowers. While pyrethrins have low systemic toxicity, they are highly allergenic, especially to children and adults with asthma and other respiratory conditions. Petroleum distillates are solvents and have the same effects discussed under the solvent, xylene, an inert in Durban LO mentioned previously. Drione's active ingredients (amorphous silica gel and pyrethrins) are good choices; silica is nontoxic, and pyrethrins break down quickly in the environment. LD50: PRIMARY USE: APPLICATION: FORMULATION: HEAL TH: 49 Ib-ql- . 6. PESTICIDE NAME: Tempo 20% Wettable Powder TYPE: pyrethroid (synthetic pyrethrin) ACUTE HAZARD RATING: Warning LD50: (oral) 500 mg/kg PRIMARY USE: interior/exterior crack and crevice treatment for ants APPLICATION: Liquid spray FORMULATION: 20% active ingredient (cyfluthrin), 80% inert ingredients. Listed as a partial inert is crystalline silica, up to 10%. HEALTH: Cyfluthrin's structure resembles that of the organochlorine DDT more than any of the other pyrethroids do. It causes repetitive discharge and strong excitatory action on the central nervous system, peripheral nerves, and skeletal muscle fibers by interfering with axonal sodium and potassium channels, as does DDT. As a result cyfluthrin induces salivation, incoordination, muscle trembling, jerky movements, behavioral changes, and convulsions. While an oral LD50 rating of 500 mg/kg has been assigned to this product's active ingredient, acute toxicity studies of cyfluthrin show widely different LD50's for male and female test animals. The health data base for cyfluthrin is incomplete and EP A is requiring further data on neurotoxic and reproductive harm. No permissible exposure limits (PELs) have been set by OSHA. The inert listed, crystalline silica, unlike the amorphous silica which is the active ingredient in Drione, is a dangerous respiratory hazard. Excessive, long-term exposureto crystalline silica can cause silicosis, a form of disabling, progressive, and sometimes fatal fibrotic lung disease. It is considered carcinogenic in animals. ENVIRONMENT: Cyfluthrin is acutely toxic to fish and wildlife. (footnotes 1,5) 7. PESTICIDE NAME: Torus 2E TYPE: Carbamate ACUTE HEALTH HAZARD: Danger LD50: (oral) 5000 mg/kg PRIMARY USE: interior crack and crevice application for the l,arval stage of fleas and cockroaches Liquid spray 24.37% active ingredient (fenoxycarb), 75.63% inert ingredients. Inerts include: xylene and other petroleum solvents, and propylene glycol monomethyl ether (a glycol ether). Fenoxycarb is a non-cholinesterase inhibiting carbamate insect growth regulator. APPLICATION: FORMULATION: HEALTH: While the acute effects are listed by the manufacturer as practically nontoxic if swallowed and slightly toxic if inhaled, it is a skin irritant and corrosive to the eyes. OSHA has not established 50 Ib-9~ PELs for fenoxycarb in any formulation. A commercial respirator is required by federal law to be worn by applicators. The health effects of xylene and other petroleum solvents have been discussed above. (Hallenbeck and Cunningham-Burns, 1985; Morgan, 1989) Glycol ethers have recently come into the spotlight because several of them have been found to cause birth defects and testicular atrophy in laboratory animals. Some are less hazardous and others have yet to be tested for reproductive effects. All glycol ethers can suppress sperm counts in men, and are not recommended for use by pregnant women. In general, glycol ethers can be highly intoxicating. Other symptoms include headache, nausea, trembling, appetite loss, anemia, and personality changes. Glycol ethers are easily absorbed through the skin, causing dryness, cracking, and dermatitis. They are irritating to eyes and skin. While the propylene glycol ethers are thought to be less toxic than the ethylene glycol ethers, much remains unknown about the entire class of chemicals. ENVIRONMENT: F enoxycarb is toxic to fish and aquatic invertebrates. Drift or runoff from treated areas could cause harm. (Material Safety Data Sheet) The environmental effects of xylene and other petroleum solvents are discussed above. LANDSCAPE PESTICIDES I. NAME OF PESTICIDE: Roundup TYPE: Post-emergent herbicide ACUTE HAZARD RATING: Warning LD50: 5600 mg/kg PRIMARY USE: treatment of emerging weeds in flower and shrub beds APPLICATION: Liquid spray FORMULATION: 41% active ingredient (glyphosate), 59% inert ingredients, including 15% polyoxyethyleneamine (POEA) HEALTH: Glyphosate is considered relatively nontoxic to most forms of life, although it can cause eye irritation. It is the 15% POEA that presents toxicological concerns. Adverse effects of POEA include fluid in the lungs, cardiovascular and CNS effects. It is very toxic to aquatic animals. The California Department of Food and Agriculture supports the claim that the Roundup produce is the most widely used weed killer in the state and has been associated with the greatest number of skin and internal injuries. Most serious information gaps for glyphosate are for carcinogenicity and neurotoxicity. ENVIRONMENT: While it is known to be toxic to aquatic life, other environmental fate data is missing. 2. PESTICIDE NAME: TYPE: ACUTE HAZARD RATING: LD50: Fusilade Post-emergent herbicide Caution 2450 mg/kg 51 lb- 9 Y PRIMARY USE: APPLICATION: FORMULATION: HEALTH: ENVIRONMENT: 3. PESTICIDE NAME: TYPE: ACUTE HAZARD RATING: LD50: PRIMARY USE: APPLICATION: FORMULATION: HEALTH: ENVIRONMENT: treats bermuda grass on banks Liquid spray 13.1 % active ingredient (fluazifop-p-butyl), 86.9% inert ingredients, including xylene. Fluazifop-p-butyl is primarily a skin irritant though it is not readily absorbed by the skin. The health hazards are most significant in the inert ingredients which are primarily solvents which can cause nervous system effects including headache, dizziness, loss of coordination, and fatigue. Very toxic to fish. Avoid weather conditions that might encourage drift. Trimec Post-emergent herbicide Danger 375 mglkg Selective broadleafweed (dandelion, clover) control in turf areas Liquid spray 27.93% active ingredient (2,4-dichlorphenoxyacetic acid, or 2,4-D, 1385% propionic acid, 2.76% Dicamba (another herbicide), 57.46% inert ingredients. 2,4-D is corrosive, especially to the eyes. Toxic effects include motor disorders, disturbed cerebral electrical activity, degenerative changes in the spinal cord, liver, and kidney. The National Cancer Institute (1986 report to the American Medical Association) links 2,4-D to two types of cancer, lymphoma and soft-tissue sarcoma. 2,4-D is toxic to wildlife, contaminates water, and while it generally dissipates within a month, in dry, nutrient-poor soils it can persist for months. (Hallenbeck and Cunningham-Burns, 1985; MSDS; Morgan, 1989) (Weed-B-Gone, another formulation of2,4-D without the Dicamba, is also used by the landscape maintenance division.) 4. PESTICIDE: TYPE: ACUTE HAZARD RATING: LD50: PRIMARY USE: APPLICATION: Surflan Pre-emergent herbicide Caution 10,000 mglkg used before planting grasses and in flower beds for prevention of several common kinds of weeds Liquid spray 52 Ib-95 FORMULATION: HEALTH: ENVIRONMENT: 5. PESTICIDE NAME: TYPE: ACUTE HAZARD RATING: LD50: PRlMARY USE: APPLICATION: FORMULATION: HEAL TH: ENVIRONMENT: 40.4% Active ingredient (oryzalin), 59.6% inert ingredients Oryzalin can cause skin irritation and shortness of breath. The EP A currently classifies oryzalin as a Class C or possible human carcinogen. will contaminate bodies of water. Ronstar Pre-emergent herbicide Warning 8,000 mglkg Used to prevent crabgrass in turf Granules . 2.0% active ingredient (oxydiazon), 98% inert ingredients Active ingredient can cause eye and skin irritation. Most of product is composed of inert ingredients, none of which are known except to the manufacturer. The toxicity of inert ingredients may explain the Acute Hazard Rating of Warning instead of Caution. Very toxic to fish. (MSDS) 53 16-96 Attachment I THE PROBLEM WITH TOXICS ENVIRONMENTAL HEALTH COAL nON ISSUE PAPER This section is provided as backgroundfor those wishing additional information to provide a better understanding of the relationship between various hazardous substances and their potential health impacts. This section was written by the Environmental Health Coalition. Generally, toxic materials endanger the health of workers and the public, pollute the ambient environment, and generate direct and indirect costs for toxics users and society at large. This section presents a summary of current information about the health, environmental, and financial impacts of toxic materials. Threats to Workers Acids, bases, solvents, metals, oxidizers, asbestos, and respiratory dust hazards are among the threats faced by the staff who do cleaning, pest control, and building and vehicle maintenance. Office workers also encounter some toxic materials, such as are found in correction fluid and printer toners, and may breathe indoor air that contains high levels of pollutants. Indoor Air Pollution The full extent of health and economic damage due to indoor air pollutants is not known, and much research remains to be done. However, a 1989 USEP A report to Congress on indoor air quality (Report to Congress on Indoor Air Quality, USEPA, 1989) contained the following conclusions: . Risk estimates are not available for most pollutants, but available estimates for radon, ETS (environmental tobacco smoke), and VOCs (volatile organic compounds) demonstrate that indoor air pollution is among the nation's most important environmental health problems. (VOCs include volatile vapors and gases given off by thousands of common office sources, such as paint, adhesives, solvents, cleaning compounds, deodorizers, copy machine toners, cleaning compounds, and common pesticides.) . The potential economic impact of indoor air pollution is quite high, and is estimated in the tens of billions of dollars per year. Such impacts include direct medical costs and lost earnings due to major illness, as well as increased employee sick days and lost productivity while on the job. . A recent study conducted in Denmark demonstrated that exposures to mixtures of . 54 l b- q"1 VOCs can produce behavioral and sensory irritant effects, even though each individual compound is below the known threshold for neurological effects. Additional air quality problems are generated by HV AC (heating, ventilation, air conditioning) systems in large buildings. If the amount of fresh air coming in is not high enough, and the air flow is not maintained in all areas, pollutants build up to much higher levels that those outdoors. Besides the pollutants listed above in the EP A report, carbon monoxide and ozone are hazards in areas where office machines operate with poor ventilation. Prevention of indoor air pollution requires well-designed and maintained HV AC systems as well as industrial hygiene monitoring when a problem is suspected. A system for reporting employee complaints related to air quality (such as headaches, odors, and respiratory problems) is necessary so that patterns, or clusters, of symptoms that indicate a problem may exist can be spotted. Finally, a system for responding to complaints is necessary to ensure that action is taken to resolve the problem. Special Risks of Pesticides For most people, pesticides are the single most toxic category of materials to which they are exposed. In contrast to most other chemicals in common commerce, pesticides are designed to be killers. Reduction of pesticide use offers the greatest potential for reducing human health risk and environmental contamination of any category of commonly used chemical substance. The common assumptions that pesticides have been adequately studied and are safe when used as directed are wrong for the following reasons: . Only 17 active ingredients, out of the 600 in use, have not been fully tested for health and safety as required by current federal law. The rest either lack information, or the information has not been reviewed by the USEPA. EPA estimates that it will take until 2006 just to complete a review of the agricultural pesticides, at which time they will ~ to review data on non-agricultural pesticides. (GAO, 1994) [emphasis added] . Pesticide risk is estimated by extrapolating from laboratory studies conducted on animals. These estimates consider toxic exposure only to healthy, adult males. The risk to children, seniors, females, and the chronically ill is not estimated; individuals in these higher risk groups may be harmed by exposures deemed safe by pesticide regulations. (O'Brien, 1991). . Most studies have not adequately addressed questions ofreproductive outcomes, subtle neurologic impact, or immune system problems. (Heifetz, 1994) . Labeling of pesticides is based on risk/benefit information. Because the benefits are well known and the risks are not, available evidence is weighted toward continued use 55 \ b - S~ ofthe products. (Taylor, 1990) . Toxic pesticide residues on lawns from weed and insect killers can be absorbed through skin and inhaled, especially by children who are in closer contact with their environment than are adults. Children's mouths and noses are closer to the ground, where pesticide vapors may be more concentrated. Children absorb more through the skin as well, relative to their body weights, because they have greater surface area to weight than adults. (California Department of Agriculture, 1985). . According to a recent study done at DC Berkeley, the public is at greater risk from pesticides used in their homes and communities than from pesticide residues in food. While pesticides in food capture the most public attention, other sources of exposure have been neglected by regulators. (Robinson, Pease, et al., 1994). . Pesticide residues indoors can expose people to hazardous vapors. These chemicals bind to carpet, books, and draperies and can emit vapors for various lengths of time. Common ant and roach killers can adversely affect health with common flu-like symptoms for up to four months. Effects, such as cancer and immune system diseases, from long-term, low-level exposure are under study. (Thorpe, 1988) . A 1987 National Cancer Institute study showed that children living in homes where pesticides were used regularly had a three to nine times greater risk of childhood leukemia, depending whether the chemicals were used inside, outside, or both. (Lowengart et aI., 1987) . Another National Cancer Institute study found that Midwest farmers who used 2,4- D (2,4-dichlorophenoxyacetic acid) 20 or more days a year had a 6 times higher rate of leukemia and lymphatic cancer. (Hoar et aI., 1986). . Links between breast, prostate, and other cancers and the use of chlorinated organic chemicals (e.g., pesticides) have been identified in several recent studies (Davis et aI., 1993) . Certain pesticides have the ability to mimic estrogens and disrupt the reproductive systems of many species. Male reproductive anatomy and physiology, in particular, are disrupted by the feminizing effects of estrogen-mimicking chemicals in the environment. (Birnbaum, 1994; Guilette, Gross et al., 1994) 56 1b- <1~ Bibliography Birnbaum, L.S., 1994. "Endocrine Effects of Prenatal Exposure to PCBs, Dioxins, and Other Xenobiotics: Implications for Policy and Future Research." Environmental Health Perspectives, Vol. 102, pp. 676-679. California Department of Food and Agriculture, 1985. Parklands Pest Management. Sacramento, CA. Davis, D.L., Bradlow, H.L., Wolff, M., Woodruff, T., Hoel, D.G., and Anton-Culver, H., 1993. "Medical Hypothesis: Xenoestrogens as Preventable Causes of Breast Cancer." Environmental Health Perspectives, Vol. 101 (5), pp. 373-377. U.S. Environmental Protection Agency, 1989. Report to Congress on Indoor Air Quality: Executive Summary and Recommendations. Washington, D.e. Guilette, LJ., Gross, T.S., Masson, G.R., Matter J.M., Franklin Percival, H., and Woodward, A.R., 1994. "Developmental Abnormalities of the Gonad and Abnormal Sex Hormone Concentrations in Juvenile Alligators from Contaminated and Control Lakes in Florida." Environmental Health Perspectives, Vol. 102, pp. 680-688. General Accounting Office, 1994. Pesticides: Pesticides Registration May Not Be Completed Until 2006. GAO\RCED\93-94. Heifetz, R., personal communication. 1994. Hoar, S.K., Blair, A., Holmes, F.F., Boysen, e.D., Robel, R.J., Hoover, R., Fraumeni, J.F., 1986. "Agricultural Herbicide Use and Risk of Lymphoma and Soft-Tissue Sarcoma." Journal of the American Medical Association, Sept. 5,1986, Vol 256 (9), PP. 1141-1147. Lowengart, R.A., Peters, J.M., Ciconi, C., Buckley, J., Bernstein, L., Preston-Martin, S., Rappaport, E., 1987. "Childhood Leukemia and Parents' Occupational and Home Exposures." Journal of the National Cancer Institute, Vol. 79 (I), pp. 39-46. Massachusetts Toxics Use Reduction Institute, 1993. Seminar for Environmental Leaders on Taxies Use Reduction, p.6. Lowell: University of Massachusetts. O'Brien, M., 1991. "Are Pesticides Taking Away the Ability of Our Children to Learn?" Journal of Pesticide Reform, Winter, 1990-1991. Robinson, J.e., Pease, W.S., Albright, D.S., and Morello-Frosch, R.A., 1994. "Pesticides in the Home and Community: Health Risks and Policy Alternatives." Berkeley, CA: Calfornia 57 Ib- lDO Policy Seminar, University of California. Taylor, S. 1990. SPUR Guide: School Pesticide Use Reduction. San Diego: Environmental Health Coalition. Thorpe, K., 1988. "The Dangers of Pesticides in Schools," PTA Today, February, 1988. EHC pollution prevention publications: Home Safe Home Fact Sheets, 1989. A series of 2-4 page brochures on the least toxic household management. Sections include: Cleansers, Indoor Pests, Garden Pests, Arts and Crafts, Paints, and Auto Maintenance. . Baywatch Guide, 1990. Information for recreational boaters on least-toxic boat maintenance. . Ecological Buying Guide, 1990. A brand name list of household cleaning and pest control products that meet the EHC criteria for toxicity; and a list of stores which carry them. . Toxics Use Reduction Manualfor the Workplace, 1991. Describes toxic hazards to health and the environment generally found in small businesses, restaurants, churches, hotels, etc. Recommendations for least toxic alternatives are included. . School Pesticide Use Reduction (SPUR) Guide, 1990. A resource for parents, teachers, students, pest management personnel, and communities interested in reducing pesticides in schools. The SPUR program includes a slide show on how to work together to protect children and the school environment from the harmful effects of toxic pesticides. The Guide has been recognized as a national model and is listed in the Environmental Success Index in Washington, D.C. . Best Management Practices Guide, 1992. Information on alternatives for toxics found in the workplace. . 58 16-\0\ Attachment 2 Environmental Health Coalition Issue Paper Recommendations of Safer Substitutes for Maintenance Related Materials These are recommendations for each of the categories covered in the report, developed by the Environmental Health Coalition. The materials currently used and their potential relationship to health are listed, along with the recommendations. These recomendations were incorporated into city staff recommendations. 1) Petroleum Hvdrocarbons (i.e. Gasoline) ].] Products. The largest volume of hazardous materials used in the City fits within this category; including fuels, solvents, and lubricants. The City maintains gasoline and diesel fuel tanks with which to fuel vehicles at the operations yard. Also used at the yard are motor oils, cleaning solvent (Safety-Kleen units), brake and transmission fluids, lacquer thinner, grease, WD-40, floor covering adhesives, solvent-based hand cleaners, and aerosol propellants (propane and butane). Petroleum hydrocarbons may be indicated on product labels as "petroleum distillates," "petroleum naphtha," or "mineral spirits." 1.2 Health Hazards. The major workplace danger related to petroleum hydrocarbons is inhalation of vapors released from volatile liquids. Skin exposure is also a concern unless precautions are observed. Petroleum hydrocarbons affect the central nervous system, causing dizziness, loss of coordination, and intoxication leading to drowsiness and ultimately loss of consciousness. Long-term exposures can produce permanent nerve damage with symptoms such as tremors, weakness, or memory deficits (see Gosselin, R.E., Smith, R.P., Hodge, H.C. 1984 Clinical Toxicology of Commercial Products Section 2- ]57). Internal organs such as the kidney and liver can also be damaged by acute or chronic exposure to petroleum hydrocarbons. The lungs and respiratory passages can be irritated or damaged by toxic exposures, resulting in chemical pneumonitis (lung disease) or pulmonary edema (fluid in the lungs). All of these materials can irritate and dry out skin, causing dermatitis, and some solvents can penetrate skin and enter the bloodstream. Certain petroleum hydrocarbons are known to be carcinogenic, such as benzene, found as an additive in gasoline. Xylene, found commonly in hydrocarbon mixtures, has been implicated in clusters of birth defects occurring in industrial communities along the Mexico-US border. The oxygenated hydrocarbon solvents, such as isopropyl alcohol and acetone, are less acutely toxic but are highly flammable. The least toxic and flammable petroleum hydrocarbons are oils, greases, and asphalt, which are heavier, less volatile, and combustible rather than flammable. 59 lb-10"L- 1.3 Environl11~ntal Hazards. All of the petroleum hydrocarbons are environmental hazards and should be prevented from evaporating into air, soaking into the ground, or running off into ditches or storm drains. . Petroleum-based materials may contain hazardous additives, such as ethylene dibromide added to unleaded gasoline, or the material may pick up hazardous constituents during use, such as heavy metals found in used motor oil. 1.4 Vehicle Exhaust. Both gasoline and diesel exhaust have toxic constituents: unburned hydrocarbons, particulates, nitrogen and sulfur oxides, and carbon monoxide. Petroleum Hvdrocarbon Recommendation: . Hire industrial Itygeinist to evalaute tlte exltaust and exltaust ventilation in tlte garage. 2. Chlorinated Hvdrocarbons (i.e. nrint shop solvents) 2.1 Products: Solvent cements and lubricants containing methylene chloride, 1,1,1- trichloroethane, CFC, and other chlorinated solvents; print shop blanket wash containing perchloroethylene; and herbicides (Trimec and Weed-B-Gone) containing 2,4-D. 2.2 Hazards. Chlorinated compounds such as dichlorodiphenyltrichlorethane (DDT) and polychlorinated biphenyls (PCBs) are notorious for their persistence in the environment and are sources of increasing concern about their ability to interfere with the reproductive capacity of many animal species, including humans. Recent research links them tentatively to human breast cancer as well. (Davis, D.L., Bradlow, H.L., Wolff, M., Woodruff, T., Hoel, D.G., and Anton-Culver, H., 1993. "Medical Hypothesis: Xenoestrogens as Preventable Causes of Breast Cancer." Environmental Health Perspectives, Vol. 101 (5), pp. 373-377.) Clt/orinated Hvdrocarbon Recommendation. . From both health and environmental standpoints, these materials are a high priority for phaseout. 3. Glycol Ethers (i.e. bathroom cleaners, degreasers) 3.1 Products: Glycol ethers are very commonly present as solvents or degreasers in cleansers, inks, paints, and other coatings, especially in water-based products. They are the active ingredients in cleaners such as 409 and water-based engine cleaners such as Simple Green. 60 \6- 1(:)'":1- 3.2 Hazards: Some are volatile enough to be respiratory hazards. They are also readily absorbed through skin. They have little odor, so that smell cannot be relied on as an indicator of overexposure. Health effects of over exposure include anemia, mild intoxication, and irritation of the eyes, skin, nose, and throat. Certain glycol ethers are reproductive health hazards for both men and women. In laboratory studies, these compounds caused birth defects and damage to the testicles of labratory animals. Studies of exposed workers showed reduced sperm counts. The ethylene glycol ethers are considered more hazardous than the propylene glycol ethers; however, neither product labels nor MSDS sheets can be relied on to state which glycol ether a product contains - often, "glycol ether blend" is the only information given. Glvcol Etller Recommendation. . Used with care, glycol ether products may be the best alternative, at this time, to more volatile, flammable, and toxic petrochemical solvents. For example, Simple Green, a glycol ether/detergent product, is now used in place of the solvent-based cleaner Instromet for cleaning parking meter parts. Glycol ethers are preferable to solvent- based engine degreasers. They should be avoided in situations where a hot water- detergent cleaning process, a citrus-derived cleaner, or an abrasive cleaner could be substituted. 4. Corrosives (e.g. carborator cleaner) 4.1 Products: The most corrosive material used by the City is the muriatic acid used in sizable amounts at one City swimming pool. (The caustic material sodium hydroxide, previously used for pH control, has been phased out). Sulfuric acid is present in one brand of drain opener, although it has been mostly replaced with enzyme-based products, a much safer alternative. Many cleaners contain an acidic or alkaline corrosive as the active ingredient: carburetor cleaner contains cresylic acid, metal cleaner contains oxalic acid, and ammonia, bleach (sodium hypochlorite 5%), phosphoric acid, and quaternary ammonium chlorides are found in other cleaners. A product used in water treatment systems for control of scale contains the high-pH corrosives sodium metasilicate and potassium hydroxide. A microbiocide used in water treatment, isothiazolinone, is also corrosive. Sodium hypochlorite is used now in place of chlorine gas at both City swimming pools. Corrosion inhibitors used in water treatment systems or vehicle coolant systems contain nitrates, nitrites, and borates, which are also themselves corrosive. Corrosive Recommendations: . Continue use of carbon dioxide in swimming pools and reduce use, where appropriate of muriatic acid. Continue use of sodium hypochlorite for disinfection of swimming pools, as the law requires that a chlorine residual be present in public swimming pools. Replace acid drain openers with enzyme-based products. 61 \ b - \ O~ 4.2 Hazards. The immediate hazard is damage to skin, eyes, respiratory passages, mucous membranes, or clothes from contact with the corrosive material. Many are also powerful oxidizing or reducing agents and are therefore reactive with a wide variety of other materials. Muriatic (hydrochloric) acid gives off corrosive vapor at room temperature and can irritate or damage the lungs if breathed. 62 \6 -loY 5. Chlorofluorocarbons (CFCs) -- refrieerants in HV AC. aerosol sorav. some nolvstvrene 5.1 Products: There are three uses of these potent ozone-depleting chemicals: as propellants in certain aerosol products; as refrigerant for building air-conditioning systems, and as refrigerant in vehicle air-conditioning systems. The City uses CFCs for all these purposes; Freon vehicle air-conditioning refrigerant is recycled on-site by a mobile recycling service. 5.2 Health H~7~rds. CFCs, when inhaled, can cause heart arrythmias that can manifest as heart attacks. 5.3 Environmental Hazards. CFCs are stable, long-living compounds which persist for decades. They react with sunlight and ozone molecules in the stratosphere to convert the ozone into oxygen, thereby damaging the ability of the ozone layer to shield the Earth's surface from harmful amounts ofUV radiation. Large holes in the ozone layer appeared first over Antarctica but are now present over populated continents as well. Human health impacts: increased incidence of skin cancer and cataracts, damage to the immune system. Some CFC's are being phased out of existance for use in the United States over the next 5 years. Environmental damage: destruction of oceanic phytoplankton, which forms the basis of the marine food chain, and destruction offorest and crop plants. CFC Recommendations: . For all new car purchases, buy CFC-free air conditioning units. Where possible, eliminate the use ofCFC's in new HVAC purchases. Where CFC elimination is not possible, purchase systems that use the least damaging CFC as refrigerant. Eliminate all computer cleaning solvents containing CFC's and replace with water-based solvents. 6. Heavv Metals (street paints) 6.1 Products: Lead and mercury compounds were still present in certain street marking paints at the beginning of the project. As these paints wear off, the heavy metals are washed off the streets and curbs into storm drains, which flow into San Diego Bay. The City has found a lead-free red paint, and has started using a lead-free yellow paint. The blue paint contains an organic mercury compound. 6.2 Hazards. Worker and neighborhood exposures, as paints are applied or removed, can have direct human health impacts. There are environmental hazards also: as these paints wear off, the heavy metals are washed off the streets and curbs into storm drains, form 63 16- IDS where they pass untreated out into San Diego Bay. When the MPPP project began, the Streets division had found a lead-free red paint, but was still using leaded yellow paint. At this time, a lead-free yellow paint has been found and is in use. Heavv Metal.~ Recommendations . Continue complete phase out of heavy metal based paint for streets and curbs. 7. Disinfectant Cleaners (i.e. disinfectants in recreational facilities) 7.1 Products. The major disinfectant used in cleaners at City facilities is quaternary ammonium chloride. . 7.2 Health Hazards. This class of materials is rated "very toxic," according to Clinical Toxicology of Commercial Products (Gosselin, Smith, Hodge, 5th edition, 1986). Concentrated aqueous solutions (10%) are primary skin irritants, and solutions of 10-20% will cause destruction of eyes, nose, breathing passages, and lungs. Some evidence suggests that ingestion of quaternary ammonium chlorides can interfere with nerve transmission - the same reaction generated by organophosphate pesticides. However, no evidence was found to suggest that quaternary ammonium chlorides are absorbed through intact skin; as long as standard precautions are taken not to ingest the materials, the major occupational health hazard is skin irritation. The other disinfectant agent used by custodial staff is chlorine bleach (5.25% sodium hypochlorite), a corrosive material. As with other corrosives discussed above, it is damaging to skin, eyes, and mucous membranes on contact, and, as a powerful oxidizing agent, it is reactive with organic matter and many other cleaning compounds. Disinfectant Cleaners Recommendation: . Continue use of sodium hypochlorite for spot cleanup of potentially pathogenic materials. Citric acid-based cleaners in place of quaternary ammonium chloride-based products for other cleaning uses. 8. Print ShOD Materials 8 I Products: The print shop uses Blankrola, which contains perchloroethylne which is on the Director's List as a carcinogen. Blankrola is used to clean metal plates. The print shop is in the process of trying out an alternative to this product. The shop uses another chlorinated hydrocarbon compound, in a deglazing solvent which contains 96% 1,1,1- trichloroethane (also an ozone depletor). Both solvents - perchloroethylene and 1,1,1- 64 lb- to b trichloroethane, are neurotoxins, and harmful to the liver as well. They also use a corrosive material, Clean Print, containing sodium metasilicate. For the most part, the other hazardous print materials are toners, inks, and related processing solutions which are petroleum hydrocarbon mixtures and have the health and environmental hazards cornmon to this class of chemicals. 8.2 Health Hazards. While these materials are used in relatively small amounts compared to some of the other divisions, the way they are used raises concerns about the potential for human exposure: these chemicals are used indoors, the print shop personnel are directly breathing the vapors, and the ventilation system needs to be evaluated to determine if there is adequate circulation throughout the building. Print Shop Materials Recommendations: . Test soy-based inks and cleaning solutions that do not contain a chlorinated hydrocarbon. Use the materials with the lowest VOC that is compatible with the drying times needed in the operation. Have an industrial hygiene evaluation o/ventilation in the print shop through free services provided by the County. . Identify and test alternatives to Blankrola to remove the use ofperchloroethylene. 9. Paints and Coatim,:s 9.1 Products. Paints are used by both the Building Construction and Repair Division and the Streets Division of Public Works. Staff in both divisions have done a great job of identifying water-based alternatives to solvent-based coatings whenever possible. At this point, all traffic paints and most building paints are water based. Paint collected at household hazardous materials events is used for graffiti paint outs. Automotive paints have been eliminated by buying the parts pre-painted, so this is no longer done by City personnel. Solvent-based products still in use include polyurethane floor coatings, building paint for some industrial areas, wood stains, and roofrepair materials. Primer for plastic cross-walk tape contains benzene. 9.2 Hazards. Water-based coatings are much better from both environmental and health perspectives, but they are not nontoxic. In addition to water, the carrier contains petrochemical-derived plastic polymers, and may contain complex alcohols, ethylene glycol, and glycol ethers as well. Pigments, except the heavy metals noted above, are organic or inorganic coloring agents oflow-to-moderate toxicity. Titanium dioxide, the white pigment found ubiquitously in light-colored paints, is a metallic substance but is considered virtually nontoxic. Both paints and pigments, if packaged in powdered form, constitute a dust hazard and care should be taken to handle the material so that it is not inhaled. 65 'b- \ Dj Paint.~ and Caatinfs Recommendations: . Continue the switch to water-based coatings in place of solvent-based products wherever possible. Institute careful inventory control to minimize generation of waste paint or sludge, as these materials must e disposed of as hazardous waste. It is appropriate to use donated paints, such as from household hazardous waste collections, for grafitti paint-outs and renovation project with the exception that military paints may contain lead. . . 66 I b - l O'D Bibliography Birnbaum, L.S., 1994. "Endocrine Effects of Prenatal Exposure to PCBs, Dioxins, and Other Xenobiotics: Implications for Policy and Future Research." Environmental Health Perspectives, Vol. 102, pp. 676-679. California Department of Food and Agriculture, 1985. Parklands Pest Management. Sacramento, CA. Davis, D.L., Bradlow, H.L., Wolff, M., Woodruff, T., Hoel, D.G., and Anton-Culver, H., 1993. "Medical Hypothesis: Xenoestrogens as Preventable Causes of Breast Cancer." Environmental Health Perspectives, Vol. 101 (5), pp. 373-377. Guilette, L.1., Gross, T.S., Masson, G.R., Matter J.M., Franklin Percival, H., and Woodward, A.R., 1994. "Developmental Abnormalities of the Gonad and Abnormal Sex Hormone Concentrations in Juvenile Alligators from Contaminated and Control Lakes in Florida." Environmental Health Perspectives, Vol. 102, pp. 680-688. General Accounting Office, 1994. Pesticides: Pesticides Registration May Not Be Completed Until 2006. GAO\RCED\93-94. Heifetz, R., personal communication. 1994. Hoar, S.K., Blair, A., Holmes, F.F., Boysen, C.D., Robel, R.1., Hoover, R., Fraumeni, J.F., 1986. "Agricultural Herbicide Use and Risk of Lymphoma and Soft-Tissue Sarcoma." Journal of the American Medical Association, Sept. 5, 1986, Vol 256 (9), PP. 1141-1147. Lowengart, R.A., Peters, J.M., Ciconi, C., Buckley, J., Bernstein, L., Preston-Martin, S., Rappaport, E., 1987. "Childhood Leukemia and Parents' Occupational and Home Exposures." Journal of the National Cancer Institute, Vol. 79 (1), pp. 39-46. Massachusetts Toxies Use Reduction Institute, 1993. Seminar for Environmental Leaders on Toxics Use Reduction, p.6. Lowell: University of Massachusetts. O'Brien, M., 1991. "Are Pesticides Taking Away the Ability of Our Children to Leam?" Journal of Pesticide Reform, Winter, 1990-1991. Robinson, J.C., Pease, W.S., Albright, D.S., and Morello-Frosch, R.A., 1994. "Pesticides in the Home and Community: Health Risks and Policy Alternatives." Berkeley, CA: Calfornia Policy Seminar, University of California. Taylor, S. 1990. SPUR Guide: School Pesticide Use Reduction. San Diego: Environmental 67 \6- lOC1 Health Coalition. Thorpe, K., 1988. "The Dangers of Pesticides in Schools," PTA Today, February, 1988. EHC pollution prevention publications: Home Safe Home Fact Sheets. 1989. A series of 2-4 page brochures on the least toxic household management. Sections include: Cleansers, Indoor Pests, Garden Pests, Arts and Crafts, Paints, and Auto Maintenance. . Baywatch Guide, 1990. Information for recreational boaters on least-toxic boat maintenance. . Ecological Buying Guide, 1990. A brand name list of household cleaning and pest control products that meet the EHC criteria for toxicity; and a list of stores which carry them. Gosselin, R.E., Smith, R.P., Hodge, RC., 1984. Clinical Toxicology of Commercial Products, 5th ed. Baltimore: Williams & Wilkins. Sax, N.r., Lewis, RJ., 1987. Hawley's Condensed Chemical Dictionary, 11th Ed. New York: Van Nostrand Reinhold. Hazardous Substances Data Bank: on-line database available through the National Library of Medicine. Peer-reviewed and referenced toxicology data. U.S. Environmental Protection Agency, 1989. Report to Congress on Indoor Air Quality: Executive Summary and Recommendations. Washington, D.C. 68 '6- \ \0 COUNCIL AGENDA STATEMENT ITEM 17 MEETING DATE 8/20/96 IYJ//~ ITEM TITLE: Resolution - Accepting proposals and awarding contracts for police initiated towing and storage services. R I . /g" '/tJ.Ad d. h I. ... d . eso utlOn - men lng t e po Ice lDltIate tOWIDg service rate schedule and implementing a referral fee. " SUBMITTED BY: Chief of Police (,.,-"" REVIEWED BY: City Manager f ," '. I ~ \.," - \ ,\ ( , (4/5THS VOTE: YES_ NO X-) On March 7, 1995, Council authorized Police Department staff to design a competitive process to select providers of Police Initiated Towing and Impound Services. Proposals were accepted on June 30, 1995, with twelve providers responding. The process used was designed to improve the tow services provided to consumers and the City while enhancing General Fund revenues through the implementation of a referral fee paid by tow companies under contract with the City. RECOMMENDATIONS: That Council: 1. Approve agreements with the following tow operators: 1) Anthony's Towing, 2) South Bay Towing, 3) Paxton's Towing, 4) AZ Metro Towing, and 5) J.C. Towing. 2. Approve amendments to the Police-Initiated tow operators rate schedule and adopt a referral fee. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: Background. The City of Chula Vista is authorized by Section 22671 of the California Vehicle Code to issue a franchise or execute contracts for the towing and storage of vehicles having a deleterious impact upon public safety. Such vehicles include, but are not limited to, those that have been illegally parked, abandoned, involved in a serious traffic accident and the vehicles of persons who have been arrested. Chula Vista Municipal Code (Me) Chapter 5.58 prescribes the basic regulations governing the selection and operation of these tow companies. The existing tow agreements provide for consumers to use the towing company of their choice if the towing company can arrive in a reasonable period of time. 17., I Page 2, Item Meeting Date 8/20/96 The Police Department currently uses five companies to provide Police-initiated towing services: Anthony's Towing, Arnold's Towing, Glenview Towing, Paxton's Towing and South Bay Towing. Arnold's, South Bay and Paxton's have had contracts with the City to provide these or very similar services since September 27, 1966. Anthony's was added to the list of Council authorized companies on April 4, 1973. Glenview was added subsequent to the most recent competitive selection process on May 8, 1984. Each of the five companies has operated in compliance with their agreement during the contract period. Currently, each of these five companies has an identical agreement with the City and is first-up on the call rotation six days each month. Previous City Council Action. The existing agreements were approved by the City Council on June 13, 1989. In lieu of conducting a competitive process at that time, Council directed staff to require all five companies to meet higher consumer service and equipment standards in order to retain the contract. Specifically, each company agreed to: a) a twenty-minute average and forty-minute maximum response time; b) the acquisition of a variety of upgraded equipment and apparatus; c) undertake abandoned vehicle abatement activities at the direction of the City; and d) develop more responsive customer relations practices (i.e., maximum one-hour release processing and releasing impounded vehicles after normal business hours). The Council authorized staff to enter into three-year agreements with the five tow companies. The actual contracts have an indefinite term but include a "termination for convenience" clause which allowed the City to terminate the contract after three years or at any other time. The most recent rate increase was approved by unanimous Council consent via Resolution 15804 on August 21, 1990. The rate increase was recommended by staff based upon a survey of county cities that similarly regulate Police-initiated towing and storage services; the fact that it had been three years since the previous rate increase; and, the notion that there had been an increase in towing equipment, equipment operations and equipment maintenance prices over that three year period. On September 18, 1990, Council received a staff report in response to a request to expand the number of tow companies from five to six. In this report, staff recommended that the number of tow companies not be changed. Council directed staff to bring back another report within the next twelve months discussing the appropriate number of towing companies and the bidding process. Council received a follow-up report on November 5, 1991, recommending that five tow companies be retained. Council discussions at that meeting focused on the need to effect a competitive process and the various components of that competitive process. 17"~ Page 3, Item Meeting Date 8/20/96 On March 7, 1995, Council approved staffrecommendations to: 1) design a competitive process to select providers of Police Initiated Towing and Impound Services and 2) implement a Referral Fee to recoup costs associated with the Police Initiated Tow Program and as a method to increase Police Department generated General Fund revenues. The referral fee was proposed to be collected on a per vehicle basis and would reflect the City's costs of adminislering the towing program (Agenda Statement and Council Minutes attached as attachments A and B). Subsequently, the Principal Management Assistant (PMA) managing the project left the City. In light of the fiscal constraints facing the City, the Police Department tried to absorb the duties and role of the P.M.A. A Request for Proposal using a competitive process was released and proposals received. However, the vacant P.M.A. position coupled with competing priorities delayed the towing referral implementation process. Contract Award. On July 28, 1995, twelve tow operators submitted proposals. Nine of the twelve proposals met qualifying and fiscal specifications. These firms were then requested to demonstrate their capability to provide the necessary services, comply with the proposed rate structure and, within the rate structure, propose a per Police-initiated tow Referral Fee to be paid to the City all nine operator's proposed a $25.00 referral fee). Each of these requirements were rated and scored by the police department review team. The following is a list of tow operators meeting specifications in rank order: Score Tow Operators in rank order: 33 AZ Metro, 850-D Energy Way, Chula Vista, CA 33 Anthony's, 305 E St. Chula Vista, CA 32 JC Towing, 2501 Faivre St. Chula Vista, CA 32 So Bay Towing, 619 K St. Chula Vista, CA 31 Paxton Towing , 3487 Main St. Chula Vista 27 Glenview Towing, 140 Center St. Chula Vista 25 Arnold's, 1187 Walnut Ave. Chula Vista 24 Alcon, 4501 Otay Valley Rd, Chula Vista, CA 23 American, 127 Reed Ct. Chula Vista, CA Proposals were evaluated using a three-tier rating syslem by the Police Traffic Unit, the former PMA and Lt. Gawf to ensure that responses were in compliance with the specific requirements outlined in the request for proposal. The results from the three methods of evaluation were the same. The same five tow operators received the highest scores. Some of the specific RFP requirements include: o Having a minimum of three years in the towing business and ownership of a fleet of at least four (4) tow trucks in a variety of tow-capacity ratings and configurations. /7- ;J Page 4, Item Meeting Date 8/20/96 o Maintaining an impound and release facility in the City of Chula Vista and providing unobstructed and convenient customer access thereto. o The ability to remove motor vehicles on a twenty-four-hour-a-day, seven-days-per-week basis. o The ability to respond to requests for towing services within twenty (20) minutes. o Towing inoperable City vehicles twenty-four-hours-a-day at no cost to the City. o Removing and impounding up to ten (10) vehicles per day at no cost to the City from both private property and the public right-of-way as may be required by the Police Department and the Department of Building and Housing. The remaining requirements were described in the RFP. The five successful proposers clearly met specifications and demonstrated, through their proposal and follow-up site visits, their ability to meet these requirements. Additionally, the successful proposers agreed to implement the proposed rate structure and referral fee. Staff recommends acceptance of the proposals and award of contracts to the top five responsible bidders previously mentioned. Number of Tow Companies. Since 1989, the City has successfully used five tow operators to provide towing and impound services. The purpose of having a towing referral list is to provide fast, efficient emergency and abandoned vehicle tow services on an as needed basis. Long repose times to emergency tow requests adversely impact Police Officer's ability to return to active duty. The Police Department's main concern is the quality of service for our officers and citizens. Staff does not believe that increasing or decreasing the number of towing companies would enhance the quality of services. Furthermore using five tow operators the quality of services provided by tow companies and response times have been within contractual guidelines. Staff is also sensitive to the reasonable profit levels that must be maintain in order to make the towing business viable. There is simply not enough Police-initiated business to support more than five towing firms. The companies currently under contract averaged approximately 550 tows per year over the past three years. Increasing the number of companies would reduce the amount of business to be generated by each tow operator and make management and monitoring of tow companies more difficult. On the other hand, reducing the number of tow companies may jeopardize the quality of service and response times. Furthermore, if one of five tow operators went out of business, the City could continue to operate without service interruptions. Staff recommends keeping the number of tow companies under contract with the City at a maximum of five. I?~ 'I Page 5, Item Meeting Date ~/LO/96 Rate Increase. Staff has periodically contacted the tow companies to review and discuss the status of their agreement. Until July 1994, the consensus among the tow companies was that the existing system was working adequately. During the four years from August 1990 until July 1994, each of the tow companies stated at various points-in-time that the rate schedule would eventually need to be amended upward to reflect the increasing cost of doing business. However, no formal request or proposal was made by any party to increase the Police-Initiated Tow Rate Schedule until late July 1994. At that time, staff made contact with the tow operators to facilitate the implementation of the Negligent Vehicle Impound Fee (NVIP). The NVIP fee was implemented as part of the FY 1994-95 budget to recover the staff-time costs associated with processing negligent vehicle impounds. Specifically, the NVIP fee recovers the administrative costs of impounding and processing each vehicle impounded due to owner negligence. Such negligent behavior is limited to vehicles impounded based upon an owner or operator's failure to comply with state statutes relating to the operation, care and use of a motor vehicle. In 1995, about 60% of all vehicles towed and impounded at the request of the Police Department were subject to the NVIP, 12% were subject to abandoned vehicle abatement and the remainder were for law abiding motorists eligible for cost recovery from the referral fee. As a result of this renewal and solicitation for bids, the tow operators made a formal request to increase the Council approved rate schedule. In response to this request, staff initiated a rate and contract compliance analysis. Staffs initial analysis included a survey similar to that conducted in 1990 and a review of the tow companies performance over the term of the existing agreements. This analysis concluded that the current Chula Vista Tow Rate Schedule was lower than the majority of agencies surveyed. Notwithstanding staffs recommendations, the rationale for the operator's request for a rate increase was based primarily on two factors: A. That the City's rate schedule was out of line with other jurisdictions since, as mentioned above, the most recent rate increase occurred in August 1990. B. That the City has required an increasing level of administrative work on their part to comply with state law and City policies, most notably the implementation of the Negligent Vehicle Impound Fee. 17.5 Page 6, Item Meeting Date 8/20/96 Staff conducted a survey of cities in 1995 to determine what the new rates should be. The survey results and proposed rates negotiated with the tow operators are presented below: PoLICE INITIATED TOWING RATES IN SAN DIEGO COUNTY San Diego FJ Cajon N_ F.<icowtido Survey ChuIa vm. Chula VISta Service City Average CumJDt Proposed Basic Tow $72.00 $55.00 $75.00 $75.00 $69.25 $55.00 $70.00 Mileage $2.50 $2.50 $2.50 $0.00 $1.88 $2.50 $2.50 Labor $40.00 $40.00 $00.00 $40.00 $30.00 $24.00 $30.00 Storage Hour $4.00 $2.00 $2.00 $2.00 $2.50 $1.50 $2.50 Storage $15.00 $12.00 $12.00 $15.00 $13.50 $12.00 $15.00 MaxlDay PM Release $28.00 no service $28.00 $35.00 $30.33 $25.00 $30.00 Heavy Tow $125.00 no service $125.00 $120.00 $123.33 $120.00 $125.00 Average Cost $98.00 $79.50 $87.00 $100.00 $90.41 $71. 00 $93.00 Referral Fee $17-35 no no no n/a no $18 Included in Tow Rate Note: Due to variance in the application of ancillary charges, it is difficult to accurately compare one jurisdiction's rate schedule with another. Such ancillary charges interact with the basic rate to create the tow operator's revenue stream. For example: in Chula Vista, mileage charges accrue only after the first mile; in San Diego and National City, mileage charges accrue after five miles; El Cajon charges for all mileage; and, in Escondido there is no charge for mileage. Additionally, National City does not have a labor rate which skews the average labor rate reported. Proposed Rates. Tow Operators in Chula Vista have not received a rate increase since 1989. The proposed rates for the most part are equal to or slightly above the 1995 survey average. These proposed rates are acceptable to the five recommended tow operators. Staff recommends implementation of the proposed rates as shown above. Referral Fee. The Police Department refers approximately 2,500 tows annually to private tow operators. The proposed referral fee would be collected on a per vehicle basis and would reflect the city's cost of administering the towing program and its role in developing the business of the private firms chosen to provide Police-initiated towing and impound services. Consumers may contact any towing company they choose, provided their choice will not unreasonably delay the attending Police Officer. J7,.,? Page 7, Item Meeting Date 8/20/96 All successful tow operators proposed up to the maximum referral fee of $25.00. This amount was the highest referral fee possible under the initial program cost information provided to interested tow operators. Subsequently, staff negotiated a referral fee of $18.00. The proposed referral fee of $18.00 was derived by dividing the non-reimbursed towing cost by the number of impounds not reimbursed at this time. The calculation of the non-reimbursed program cost set the maximum referral fee at $18.00. Under current State law, the referral fee rate cannot exceed the non-reimbursement towing program costs. Therefore, staff recommends implementation of a $18.00 referral fee to recoup non-reimburse towing costs to the City. The total towing program cost is summarized below: Classification Rate: FCR: Hours: Cost: Community Service Officer $28,0401 2.56393 nla $ 71,892.60 Communications Operator II $17.12 2.92998 350.0' 17,556.44 Peace Officer $22.78 2.92998 2007.3' 133,977.13 Police Records Assistant II $13.03 2.92998 1040.0' 39,704.74 Police Sergeant $27.78 2.92998 104.0' 8,465.06 Total Cost $271,595.99 1.0 CSO in the Police Department is assigned full time to the Towing Program. The City's Full Cost Recovery program differentiates full and part time positions in its methodology to determine the appropriate full cost recovery amount. 'The Communications Operator must take the call, dispatch a Police Officer, make the appropriate data entries and then contact the tow company. These tasks average approximately six (6) minutes per call for tow service. 'Based on an average of 34.41 minutes per tow; this is the per call for service average derived from the FY 1995-96 Patrol Staffing Study. '1.0 Police Records Assistant spends approximately one-half of their time on tasks related to the Police Department's Towing Program. '1.0 Police Sergeant spends approximately 5% of his time on tasks related to the Police Department's Towing Program. /7...7 Page 8, Item Meeting Date 8/20/96 FISCAL IMPACT: Currently, the Police Department receives approximately $140,000 annually for reimbursement of Abandoned Vehicle Abatement efforts and approximately $80,000 annually for reimbursement of costs associated with negligent vehicle impounds. Based on a Referral Fee of $18.00, the Referral Fee would generate an additional $46,700 in annual General Fund revenue. The Police Department would recover approximately 98% of the costs associated with providing Police- initiated towing services. The Referral Fee would not be applicable to the towing of city vehicles or on the towing and impoundment of abandoned vehicles. Attachment A: March 7, 1995 Agenda Statement NOTSCANNEU Attachment B: Tow~ng Council Minutes NOT SCANNED Attachment C: Towmg Agreement 17- Y /17-.55 . ~. :~, ~, ----------- ., j9r,F/IC/-/)h'_ - /'r" ~ ~aAA-sLJ COUNCIL AGEND" STATL.:.\lENT Item ~ '7 Meeting Date 3/1J7/95 ITEl\1 TITLE ~ ReFort: Police Initiated Towing Services -- Rate Schedule and Selec:'2G of Service Providers. SUB/vaTTED BY (\ . Chief of PolIce \! leV . "-' -~ J [b' City Manager U' ",-l (4/5ths Vote: Ycs_NoX) REVIEWED BY The City currently contracts with five companies to provide Police"'.::.:::ed vehicle towing and storage services. These firms have requested that Council review and amend the existing tow rate structure. Staff has evaluated this request and is not recommending a tow rate increase at this time. Additionally, based upon prior Council direction, Police Department staff has designed a competitive process to select providers of Police initiated towing and impound services after June 30, 1995. This report discusses both the operator's proposal to increase tow rates and the components and time-line for the competitive process recommended by staff. The proposed competitive process is similar to a successful competitive process recently implemented by the City of San Diego. This proposed process is designed to improve tow services provided to consumers and the City while enhancing General Fund revenues through the implementation of a Referral Fee paid by tow companies under contract with the City. -" -- RECOMM.E1\'DA nONS That Council: 1. Defer any increase in the Police-Initiated Towing and Storage Rate Schedule at this time. 2. Authorize staff to Conduct the Proposed Competitive Process including a Referral Fee, BOARDSfCOl'v1l\lISSIONS RECOMMENDATION: Not Applicable Background. The City of Chula Vista is authorized by Section 22671 of the California Vehicle Code to issue a franchise or execute contracts for the towing and storage of vehicles having a deleterious impact upon public safety. Such vehicles include, but are not limited to, those that have been illegally parked, abandoned, involved in a serious traffic accident and the vehicles of persons who have been arrested. Chula Vista Municipal Code (MC) Chapter 5.58 prescribes (7 0 ~--r, the basic regulations governing the selection and operation of these tow companies. The existing tow agreements provide for consumers to use the towing company of their choice if the towing company can arrive in a reasonable period of time. The Police Department uses five companies to provide Police-initiated towing services: Anthony's Towing, Arnold's Towing, Glenview Towing, Paxton's .Towing and South Bay Towing. Arnold's, South Bay and Paxton's have had contracts with the City to provide these or very similar services since September 27, 1966. Anthony's was added to the list of Council authorized companies on April 4, 1973. Glenview was added subsequent to the most recent competitive selection process on May 8, 1984. Each of the five companies has operated in compliance with their agreement during the contract period. Relatively few complaints are received as a result of PD initiated towing services. . Currently, each of these five companies has an identical agreement with the City and is first-up on the call rotation six days each month. Previous City Council Action. The existing agreements were approved by the City COUTICiJ on June 13, 1989. In lieu of conducting a competitive process at that time, Council directed staff to require all five companies to meet higher consumer service and equipment standards in order to retain the contract. Specifically, each company agreed to: a) a twenty-minute average and forty-minute maximum response time; b) the acquisition of a variety of upgraded equipment and apparatus; c) undertake abandoned vehicle abatement activities at the direction of the City; and d) develop more responsive customer relations practices (i.e., maximum one-hour release processing and releasing impounded vehicles after normal business hours). The Council authorized staff to enter into three-year agreements with the five tow companies. The actual contracts have an indefinite term but include a "termlmtion for convenience" clause which allowed the City to terminate the contract after three years or at any other time. - The most recent rate increase was approved by unanimous Council consent via Resolution 15804 on August 21, 1990. The rate increase was recommended by staff based upon a survey of county cities that similarly regulate Police-initiated towing and storage services; the fact that it had been three years since the previous rate increase; and, the notion that there had been an increase in towing equipment, equipment operations and equipment maintenance prices over that three year period. On September 18, 1990, Council received a staff report in response to a request to expand the number of tow companies from five to six. In this report staff recommended that the number of tow companies not be changed. Council directed staff to bring back another report within the next twelve months discussing the appropriate number of towing companies and the bidding process. Council received a follow-up report on November 5, 1991, recommending that five tow companies be retained. Council discussions at that meeting focused on the need to effect a competitive process and the various components of that competitive process. {\,\ b \ 21 2 Page 3, Item --L1. Meeting Date: 3/07/95 The staff reports and minutes (in those cases where there was Council discussion) from these meetings are attached for your reference. . Request for Rate Increase. Staff has periodically contacted the tow companies to review and discuss the status of their agreement. Until July 1994, the consensus among the tow companies was that the existing system was working adequately. During the four years from August 1990 until July 1994, each of the tow companies stated at various points-in-time that the rate schedule would eventually need to be amended upward to reflect the increasing cost of doing business. However, no formal request or proposal was made by any party to increase the Police-Initiated Tow Rate Schedule until late July, 1994. At that time, staff made contact with the tow operators to facilitate the implementation of the Negligent Vehicle Impound Fee (NYIP). The NYIP fee was implemented as part of the FY 1994-95 budget to recover the staff-time costs associated with processing negligent vehicle impounds. Specifically, the NYIP fee recovers the administrative costs of impounding and processing each vehicle impounded due to owner negligence. Such negligent behavior is limited to vehicles impounded based upon an owner or operator's failure to comply with state statutes relating to the operation, care and use of a motor vehicle. About 57% of all vehicles towed and impounded at the request of the Police Department are subject to the NYIP, the remainder of Police-initiated tows are for law abiding motorists. As a result of this contact, the tow operators made formal request to increase the Council approved rate schedule. In response to this request, staff initiated a rate and contract compliance analysis. Staff's initial analysis included a survey similar to that conducted in 1990 and a review of the tow companies performance over the term of the existing agreements. This analysis concluded that the current Chula Vista Tow Rate Schedule was lower than the majority of agencies surveyed and that each of the existing companies had generally demonstrated satisfactory contractual performance. Based on this preliminary analysis, staff met with the five tow companies to discuss potential amendments to their agreement presuming that staff's ultimate recommendation to the City Council would be to enter into new agreements with the same five companies. ~'.- However, subsequent analysis of this issue's history indicated that it would be more appropriate to identify Police-initiated tow service providers through a competitive process. This dctErmination was based upoD the following facts: 1. the current companies have had contracts to provide Police-initiated towing services for periods of time ranging from a minimum of eleven years to a maximum of twenty-nine years; 2. since 1966, only one competItIve process been conduded to select the providers of Police-initiated towing services; and, 17-\\ ,~ ! i em :, reltC: 3/07/95 3, the competItIve process used in 1984 resulted in a contract e.'~' companies already under contract with the city and the addition 01 , tor the four ;;ompany. Notwithstanding staffs recommendations, the rationale for the operator's request for a rate increase was based primarily on two factors: A. That the City's rate schedule was out of line with other jurisdictions since, as mentioned above, the most recent rate increase occurred in August 1990, B. That the City has required an increasing level of administrative work on their part to comply with state law and City policies, most notably the implementation of the Negligent Vehicle Impound Fee. Staff conducted a survey of cities to determine if a rate increase was appropriate and, if so, what the new rates should be. The survey results are presented below. There are as many approaches to the provision of Police-initiated towing and impo,und services as there are cities: methods run the spectrum from city operated towing and impound operations to single-vendor franchises to unregulated competition. Therefore, only those fees common to San Diego county cities that regulate the provision of Police-initiated towing services by municipal Ordinance were _ __ included in the survey. Due to variance in the application of ancillary charges (i.e., mileage, labor and storage) it is difficult to accurately compare one jurisdictions rate schedule with another. Such ancillary charges interact with the basic rate to create the tow operator's revenue stream. For example: in Chula Vista, mileage charges accrue only after the first mile; in San Diego and National City, mileage charges accrue after five miles; EI Cajon charges for all mileage; and, in Escondido there is no charge for mileage, In order to effectively compare the rates charged in the cited jurisdictions, staff developed a normalizing process that is reflected in the last row of the table. This row, entitled" Average Cost" reflects the cost to a citizen of a routine tow. The routine tow used by staff in this normalizing process includes: a basic tow of five miles, one-quarter hour of labor, and one day's maximum storage charge_ The maximum storage charge was incillded because the maximum rate is charged <liter four 10 six hours of storage and most vehicles remain in storage longer than four hours. The l1onnalizedT<tte.s cited in the Average Cost row corrects for most of the known inter-jurisdiction variances in the application of ancillary charges. ..v ,,- \ '-. -"f- Page 5, Item Meeting Date: 3/07/95 POLICE blTIATED TO\\1"G RATES I" SA'" DIEGO COUl'.'TY . San Diego FJ CJ\ioo Natiooal F.5cood;do 50rvey Chub Visla Chub VISta Senw:e - City A YerDge Current Proposed Basic Tow S72.00 S55.00 S75.00 S75.00 S69.25 S55.00 $70.00 Mileage S2.50 S2.50 S2.50 SO.OO S 1.88 S2.50 $2.50 Labor S40.00 S40.00 SO.OO S40.00 S30.00 S24.00 $30.00 Storage Hour S4.00 S2.00 $2.00 $2.00 $2.50 S 1.50 S2.50 Storage $15.00 SI2.00 $12.00 $15.00 $13.50 $12.00 SI5.00 MaxlDay PM Release $28.00 DO service $28.00 $35.00 S30.33 $25.00 S30.00 Heavy Tow $125.00 no service SI25.00 $120.00 $123.33 $120.00 SI25.00 A verage Cost $98.00 $79.50 $87.00 $100.00 $90.41 $71.00 $93.00 Referral Fee $17-35 no DO DO nla DO yes Included iD Tow Rate The column entitled "Chula Vista Proposed" presents the rate structure staff would recommend if the City were to grant a rate increase and institute a Referral Fee (discussed in detail below) now instead of going through the recommended competitive process. .~- The five existing tow companies are adamant that a rate increase should be implemented immediately. The Average Cost figures presented above provide a normalized comparison between Chula Vista's current rates and the rates of other comparable cities that regulate Police- initiated towing services. Chula Vista's current rates and the "Average Cost" of a Police- initiated tow in Chula Vista are currently less than in the survey cities. However, it is important to emphasize that San Diego's rate includes a Referral Fee of $17 to S35, depending on the geographic zone. The net revenue to the tow operator for the average tow therefore ranges from $63 to $81 in San Diego. Chula Vista's current rate structure is thus not as much lower than the other cities rates as it might seem. Furthermore, none of the tow operators have asked to be Tl'll'"""rI from their existing contracts. Adopting the rates presented in the Chula Vista Proposed column would place Chula Vista's Police-initiated tow rate structure at the median level for comparable jurisdictions in San Diego county. However, Chula Vista's Proposed rate structure would provide for an average cost of $93.00, an average cost $5.00 less than in the City of San Diego. In order to place rates in the context of the overall Police-initiated towing market, the analysis should recognize that the San GtR . . Ige 6, Item. __ :'~ting Date: 3/07/95 Diego Police Department initiates approximately 50,000 tows annuall: the number of tows initiated by the police department's of the City of . and National City combined. Therefore, Chula Vista's proposed rate s: proposed Referral Fee, compares very favorably on the basis of both-a cit. and when viewed in the context of a market-wide analysis. ,vre than three times .' a Vista, Escondido re, including the "ity comparison However, in the absence of the proposed Referral Fee, implementation of the. ::Jla Vista proposed rate structure would push the City's rates to second highest in the COULlY among comparable cities (recall that San Diego's price structure includes a $17 - $35 Referral Fee). Therefore, it is staffs recommendation to implement the rate structure presented in the Chula Vista Proposed column only at the conclusion of the recommended competitive process with the establishment of a Chula Vista Referral Fee. ~. Referral Fee. Staff is recommending the Referral Fee as a method to increase Police Department generated General Fund revenues. The Police Department refers approximately 3,500 tows annually to private tow operators. The proposed Referral Fee would be collected on a per vehicle basis and would reflect the City's costs of administering the towing program and its role in developing the business of the private firms chosen to provide Police-initiated towing and impound services. Consumers may contact any towing company they choose, provided their choice will not unreasonably delay the attending Police Officer, but the Police Department's referral is valuable in terms of the business opportunities for tow companies on the list. Additionally, the Referral Fee would assist in developing full cost recovery (FCR) associated with the Police Department's Towing and Abandoned Vehicle Abatement Program. Total program costs compared with current reimbursements are described in the table below. ,. . "I CITY OF CIIULA VISTA TOWII'G PROGRA\! COSTS CI.assiIicatioa Rate: FCR: Houn: TOVoing Program Costs: Commuruty Service Officer S28,040.00' 2.56393 nla S7I,892.60 Communications Operator II S17.12 2.92998 350.0' S 17,556.44 Peace Officer S21.90 2.92998 2007.3' S128,798.33 Police Records Assistant S13.03 2.92998 1040.0' S39,704.74 Police Sergeant S26.71 2.92998 104.0' S8,139.02 Total Police Department Towing Program Costs: S266,091.U --. -" City's Full Cost Recovery Piog-iim dif~es fuJl-.aDd j,irt-time pQSiiions Dlits meili~nloiY-to rlei';:"';;;e the -- .appropmt" full cost recovery .amounL ~ The Communications Operator must take the call, dispatch a Police Officer, make the appropriate data entries and then contact the tow company. These tasks average approximately six (6) minutes per call for tow service. ) Based on an average of 34.41 minutes per tow; this is the per calI for service average derived from the FY 1995-96 Patrol Staffing Study. . 1.0 Police Records Assistant spends approximately one-half of her time on tasks related to the Police Department's Towing Program. , 1.0 Police Sergeant spe,ds approxim.,cely 55\ of his time on tasks related 10 Ibe Police Department's Towing Proo"", ~.,' Page 7, Item 11 Meeting Date: 3/07/95 Currently, the Police Department receives approximately $100,000 annually for reimbursement of Abandoned Vehicle Abatement efforts and approximately $100,000 annually for reimbursement of costs associated with negligent vehicle impounds. Based on a Referral Fee of$17.00 (the most common rate in San Diego city), the .Referral Fee would generate $59,500 in annual General Fund revenue. Therefore, if the Referral Fee. concept by staff is adopted, the Police Department would recover approximately 98 % of the costs associated with providing Police-initiated towing services if Chula Vista's Referral Fee is at San Diego's most common level. The Referral Fee would not be applicable to the towing of City vehicles or on the towing and impoundment of abandoned vehicles. Competitive Process. There has been significant interest in a competitive process from local and regional towing firms. Moreover, the five existing firms have stated that they are prepared to respond ID.a competitive bid and operate in a more competitive environment. Staff is proposing to implement a process similar to that recently used by the City of San Diego. That process used an administrative analysis to determine an appropriate rate structure. Firms were then requested to demonstrate their capability to provide the necessary services, comply with the appropriate rate structure and, within that rate structure, bid a per Police-initiated tow Referral Fee to be paid to the City. This method has the advantage of allowing a comparison among responsible bidders based on a single, directly comparable moving point: each bidder's proposed Referral Fee. The San Diego Police Department received separate bids for each of nine pre-determined geographic zones or tow districts. The referral fees bid for these nine districts range from $17.00 to $35.00, however, the most frequently occurring referral fee is $17.00. Contract A ward. The proposed competitive process would include two distinct phases: a Qualifying Phase and a Fiscal Impact Evaluation. The Qualifying Phase would consist of an analysis to determine if the proposer meets specific minimum business operation, equipment, contractor performance and customer relations requirements. These requirements would be articulated in any agreement negotiated for Police-initiated towing and impound services and include: -- - . Having a minimum of three years in the IDwing business and ownership of a fleet of at least four (4) tow trucks in a variety of tow-capacity ratings and configurations. . Maintaining an impound and release facility in the City of Chula Vista and providing unobstructed and convenient customer access thereto. . The ability to remove motor vehiclEs on a twenty-four-hour-a-day, seven-d.ays-per-week basis. . The ability to respond to requests for towing services within twenty (20) minutes. . Towing inoperable City vehicles twenty-four-hours-day at no cost to the City. '7-1~ \~- \ ;tem ;.; ;ate: 3/07/95 . Removing and impounJing up to ten (iL; vehicles per day at"no ., to I:\(. City from both private property and the public right-of-way as may be required by the Police Department and the Department of Building and Housing. .: i! , The remaining requirements are described in Attachment 1. Proposers would be required to clearly demonstrate, through their proposal and, if necessary follow-up site visits, their ability to meet these requirements. Additionally, this phase would ensure the proposer agreed to implement the rate structure presented as Chula Vista Proposed shown above. Firms passing the Qualifying Phase would be certified as responsible bidders. All responsible bidders would qualify for the Fiscal Impact Evaluation. This evaluation would assess only the respondents proposed Referral Fee. The firm proposing the highest Referral Fee would be identified as the successful bidder. Staff would negotiate with the successful bidder to develop an operational agreement based upon the RFP's requirements. Next, staff would negotiate with the remaining responsible bidders in descending rank Referral Fee bid order to determine if those firms would provide Police-initiated towing services under the Referral Fee negotiated with the successful vendor. This process would continue until a maximum of three firms were identified or the list was exhausted. Staff would ultimately bring forward a Resolution approving agreements with not more than three firms and amending the Police-initiated Towing Service Rate Schedule to reflect those rates presented as Chula Vista Proposed in ~.:IS report. .-- -- Number of Tow Companies. Staff recommends that agreements with no more than three tow companies be brought forward for Council appm'.! b:\sed upon their capabilities as demonstrated in the Qualifying Phase and their ability to enhance General Fund revenues via their proposed Referral Fee. A survey conducted by the California State University at Bakersfield in 1992 indicates that most cities with populations in excess of 50,000 have fewer than five tow contractors. This study further indicates that three (3) is the most frequently occurring number of city authorized tow companies among cities with populations over 50,000. (see Attachment 3) Additionally, regulating the activities of three (or fewer) rather than five tow companies, even taking into account the exemplary compliance record of the existing firms, is likely to reduce the regulatory burden on staff. Staff anticipates that the time required for site visits, equipment inspections, routine follow-up and abandoned vehicle abatement .service coordination activities will be reduced with fewer companies. Therefore, reducing the number of companies to three or fewer based on the proposed competitive process will result in a more effective "Ii 1 i"" tilln of Polli:e -IXt'",-d:wen! staff. However, staff would have no serious objections to including as many as five firms in the future Police- initiated towing rotation. Staff would have significant concerns with identifying more than five firms. Staff and the existing companies agree that there is simply not enough Police-initiated business to support five towing firms. The final number of tow companies will be addressed further when staff returns for Council review of the proposed contracts. '7 -\l, ';/ ~ Page 9, Item ~ Meeting Date: 3/07/95 Staff would implement the proposed competitive process on the following schedule: . Issue Request for Proposals: Responses to RFP Due: Proposah Evaluated: Contract(s) Negotiated: Contract(s) Reviewed by Council: March 16, 1995 . April 16, 1995 April 16 through April 30, 1995 May I through June I, 1995 June 13, 1995 . . . . Conclusions. Approval of the staff recommendations would: a. implement a competitive process to select the providers of Police-initiated towing and storage services consistent with past Council direction; b. result in an appropriate revision to the City's Police-Initiated Towing and Impound Rate Schedule; and, c. develop additional General Fund revenue to offset the costs of providing and administering the Police Department's Towing Program -- a service that benefits a very limited, and well-defined spectrum of the community. Alternatives. There are a variety of alternative approaches to the staff recommendations. These alternatives include: 1. Retain the five existing tow companies under the allspices of a new agreement with a Referral Fee. This alternative could be implemented; however, numerous local tow companies have been waiting for an opportunity to compete for the City's Police towing business and the amount of the Referral Fee would need to be determined. -. 2. Allow the competitive process to set Ihe rale SITUClllre instead of or in addilion 10 the Referral Fee. There are three approaches within this alternative: a. Council establishes a Referral Fee in advance of the cOmpel1tlve process and all responsible bidders would be evaluated based upon their proposed tow-related rates. b. The Referral Fee is bid as part of the competitive process and all responsible bidders would be evaluated based on both their proposed ~ and proposed Referral Fee. Staff does Dot recommend this approach dw: to the difficulties inherent in simultaneously evaluating two floating points (i.e., Tates and Referral Fee). ~ " Item :i ,1 " " Date: 3/07/95 c. Council rejects the recommended Referral Fee and aH r: evaluated based upon their proposed rates. 'e bidders would be 3. Implemem a rate increase but not implement the proposed Referra" " ; 'Jetitive process. This alternative ~ould provide for a rate increase (in an, amount that ' 'ould have to be detennined) without implementing a Referral Fee or going through a compeulive process. flSCAL IMPACT: The proposed Referral Fee would generate annual General Fund revenue to help recover the City's costs for the Police Department's towing program. The amount of revenue would vary depending on the bids received but would be about $59,500 if the final Referral Fee is $17.00. - 11 - \<b ~~ ATTACHMENT 1 1. Contractor shall have been providing tow operations for a minimum of three years. 2. Contractor shall maintain an impound and release facility in the City of Chula Vista and shall provide unobstructed and convenient customer access thereto. 3. Contractor shall remove motor vehicles on a twenty-four-hour-a-day, seven-days-per- week basis. . 4. Contractor shall respond to requests for towing services within twenty (20) minutes of being notified by the Police Department. . . 5. Contractor shall tow inoperable City vehicles twenty-four-hours-day at no cost to the City. 6. Contractor shall, at the request of the City, remove and impound up 10 ten (10) vehicles per day at no cost to the City. 7. Contractor shall comply with the approved schedule of charges and posting of same in a conspicuous place at all locations where the Contractor does business. 8. Contractor shall maintain the following equipment in good working order: a. Tow Trucks. A minimum of four trucks including: 1 Wheel Lift rated at 14,500 Gross Vehicle Weight(GVW); 1 Rollback rated at 14,500 GVW; 1 Twin Cable- Boom rated at I ton or more; and, 1 Hydraulic Boom rated at 1 ton or more. b. Tow Truck Winches. Each truck shall have a winch that is power-driven in both directions and equipped with an adequate braking system. c. Tow Truck Lighting. Each truck shall be equipped with the lighting systems as required by CVC. Additionally, trucks shall be equipped with utility lamp lighting systems that comply with the CVe. d. Tow Truck Implements. Each truck shall be carry the miscellaneous implements and equipment required by CVC Section 27700. Additionally, Contractor shall have a mimmum of one set of dollies readily available at all times. e. Tow Truck Identification. Each truck responding to requests for police initiated towing and impound services shall, on both sides of the vehicle, conspicuously bear the company name, address and phone number(s). f. Tow Truck Radio Commurucations. Each truck responding to requests for police initiated towing and impound services shall be equipped with radio C(m1m,mi""tinns equipment U!pable of effecting two-way radio communications '. between the truck and the contractDr's dispatching operation. Citizens Band radios shall not be used to meet this requirement. g. Tow Truck Maintenance Standard. Each truck responding to requests for police initiated towing and impound services shall be well maintained and clean on the exterior and interior and should reflect the clean image of the City of Chula Vista. 17 - I C; ~ ..-r 1 ~- ~-- 9. Contractor shall provide tow truck Ope:atOTS with a uniform t~at clearly identifies the company and the operator. 10. Contractor shall preserve the right of any individual involved in a ~Dn-criminal traffic collision to call the tow company o(tl,"'( )wn ~h')()~ing and shall nm ,'< infringed except in those cases where an unnecessary ," 'c,y in .t:!.1C.' ing the mator vehicle will, in the opinion of the investigating Peace Officer, ";'rr.;nish public safety. 11. Contractor shall maJce and sign an accurate damag{~ assessment and vehicle inventory for each vehicle towed and that the damage assessment is recorded on City approved forms. 12. Contractor shall be liable for any damage or loss of property occurring to 'the vehicle while in contractor's possession. All damage not recorded on the damage assessment will be considered the contractor's responsibility. 13. Contractor shall make vehicles stored at the request of the City available for the purpose of estimating or appraising damages. 14. Vehicles impounded by the City for investigative purposes shall be held in maximally secured areas. 15. Contractor shall not make any repairs or alterations of vehicles in their possessIOn without express written authorization. 16. Contractor shall release impounded vehicles in compliance with and subject to the following terms and conditions. a. Contractor shall courteously provide any information required by claimant to effect the release of the impounded vehicle. Contractor shall not release any vehicle impounded as the result of a Police initiated tow unless the claimant presents a valid, City-issued Police Release. Contractor shall efficiently process claimants requests so that legitimate and appropriate requests for the release of stored or impounded vehicles are completed within one (1) hour of the time claimant arrives at the contractor's location. --.- b. c. 17. Contractor shall display in a conspicuous manner, at every place of business from which Police initiated towing and impound services are rendered, City issued "Consumer Complaint" forms provided by the City. 18. Contractor shall comply with 2pp1ic.able City Bu.sines.s 1 iN>T1<f": Building and Construction; and Zoning Regulations. 19. Contractor shall comply with all applicable sections of the California Vehicle Code. 2 , 1 .. J.{) '~ .~ \ .... I ATTACHMENT 2 -- PROPOSED POLICE INITIATED TOWING AND IMPOUND SERVICE RATE SCHEDULE Service Proposed Rate Basic Tow . $70.00 Per Mile Charge After First Mile $2.50 . Hourly Storage Fees - $2.50 Daily Storage Fee $15.00 Dry Run Charge $20.00 Dolly Usage $30.00 Labor at Scene After First 1/2 Hour $15.00 Heavy Duty Tow $125.00 Heavy Duty Dry Run $20.00 Heavy Duty Hourly Storage Fee $2.50 Heavy Duty Daily Storage $20.00 After-Hours Release $30.00 Negligent Vehicle Impound Fee $55.00 Notes: -q I. Mileage charges shall accrue from the point of vehicle pick up to the location of storage. 2. A second day's storage charge shall not accrue until the vehicle has been in storage for twenty-four hours. 3. Labor charges shall not aurue until the tow operator has been on-scene for thirty minutes. The operator shall sweep up the scene at no charge. There shall be no labor charge for unlocking a vehicle or removing a vehicles linkage. 4. After-hours release charges shall be applicable after 5:30 p.m. Monday through Friday, Saturdays, Sundays and Bank Holidays. 5. Tow companies shaH accept cash or major credit cards for all payments required to release vehicles impounded at the request of the Police Department. Companies shall keep adequate cash on-hand to make change. /7-~' ijL~ 3 j i: CJ) Q) -- C ct1 Cl. c E 0 "- +-' 0 (1j - () :J 0.. ~ 0 0.... t2 + 0 -a 0 0 Q) ~ 0 N I.!) -- ~ ...c 0 +-' ~ ...c +-' (1j ::J "- <( c ~ 0 ~ '+- +-' (1j -- 0 en () Q) ...... c 0 '+- ...... 0 CJ) 0 Q) "- Q) ~+-' ...Q 0)- -E- ..cO =:! z E ::J Z ~ 'J " ~ . o C\J f'-.. .,- A, ",'nen't 3 1!) .,- ,.-.--... co '~' '''. ~,-'~;:' :;~~~i- ''-:,~~~:: ."..,-. ........~~. ;........."V'_...,...~ ,'~"'" ojj::.5.~iI:tr~.-_~, -.-.....,. -, "<:t ('I) C\J co co C\J .,- ~f~;~:Zg~-t4~1k~~~~~fSi~~ - ~~~~~~~;tr~1.';:'~~'f~1~~~:;i ('I) ,(Y) , ,T- C\J ~ o .,- 1!) o ( 1 . \.'1,./' ~b.f + o .,- -0 Q) ...... en "- Q) ..::.:: CU CD >; ...... en en "- Q) Q) "- > C CU c 0... ::J E Q) 0 ...... 0 CU ...... 3: C/) ~ CU c -0 "- 0 Q) ...... N "- CU 0 0 ..c ...... j1> - =:! ..c <! --' -- ...... ...... ...... 0 0 "- C Q) 0 ...Q en r--. E en r--. =:! E >- z OJ "- > Q) ~ OJ 0.... (fJ 0 Q) - ..c OJ ...... ,", "0 ..c c: ...... 0 '3: Q. '" OJ a: (j) co f'-.. co 1!) '<:t 4 -0", Q) OJ (JOE =:!U -00 o ~ "- OJ 0.....0 Q) E LI:~ Minutes November 5, 1991 Page 12 RESOLtnlON 16404 OFFERED BY COUNOlMAN MOORE, reading of the text was waived, poused and approved unanimously. Councilman Rindone stated he supporred the motion but felt this was one of the taxethat could be imposed with minimal impact upon the residenrs of the Ciry. Councilwoman Grasser Harron noted that it would cause a hardship on the hotels and motels in being competitive with others in the COULlty. RESOLtnlON 16404 APPROVING ABATEMENT OF THE TRANSIENT OCCUPANCY TAX. FROM A RAn: OF TI:N PERCENT TO EIGHT PERCENT FOR CALENDAR YEAR 1992 ORAL COMMUNrCAllONS Don Swanson, 187 Murray Street, Chula Vista, c.... representing the Downtown Business Association, informed Council that the County Board of Supervisors had unanimously voted to supporr the Otay Mesa site for the University of California campus. He then updated the COULlcij on the selection process for the Town Manager. Forry applications were received and it is anticipated that review will be completed by next week with finalists submirred to the DBA by December 1st. The Honorary Grand Marshall for the Starlight Yule Parade will be Ex.Chief of Police Bill Winters and the Grand Marshall will be Mother Goose from EI Cajon. ~-~~. -~ ~~~. .---.. .,~.~---~ "'~'-_... - ~... ~ ACDON ITEMS -..-- fl2. REPORT POUCE INITIATED VEHlQE TOWS; REVIEW OF APPROPRlAn: NlUMBER / ~r TOW COMPANIES TO RETAIN UNDER CONTRACT AT CONCLUSION OF EXISTING 1l-IREE YEAR AGREEMENTs. The latest tow agreements Were executed in October 1989. On 9/18/90, Council approved two stafi recommendations: 1) that no additional tow companies be added to the list at thar time; and 2) that the issue be reviewed again prior to expiration of the current operating agreements. This item is intended to provide Council with rhat review. Staff recommends that upon expiration of the current op~ratjng agreements, Council continue to retain fi,,'e (5) tow companies. (Chief of Police) ~ ,~.. --- ---~~ .-- -- Ed Wood, 1~0 Reed Courr, Chula Vista, CA, representing Glenview Towing, spoke in sup parr of the staff recommendation. He stared that u~e businesses Were having a difficulr time with their revenues do\\.'TI 40% and he did not feel they could word the additional competition. Bo Lemler, 3~87 Main Street, Chula Vista, CA, representing Paxton Towing, spoke in supporr of the staff recommendations. He nored thar all their expenses Were rising wirh their revenues down 42% and it would be a hardship if other companies Were added. Brad Ramsey, 1421 California Street, Imperial Beach, CA, representing A to Z Towing, spoke in supporr of the staff recommendarion. He suggested that staff and the Police Department look at lowering the number of companies in the future. Clay Plan, 449 D Street, Chula Vista, CA, representing Platt's Towing, spoke in oppoSItIOn to the staff recommendation. He stated that he was not one of the five current tow companies and felt that the system should be set so that if one company felt they could service the entire ciry, they should be able to submit a proposal indicating this. The serring of any number Was unacceptable. He questioned whether the row contracts would Come under the California PubJic ContTact Law. Ruth Fritsch, Assistant City Anomey, responded that she would have to research this and retum ro Counci!. ~3 5 Minuees "vember 5, 1991 Page 11 I, other uses ~mg taxed should be reviewed, i.e, billboards, cardrooms, rock c 'sticldng' the local businesses, He felt this was a different set of priorities than} .:5, erc. rather than MS (Nader/G=ser Horton) to defer the 1991.92 Business License T.1x increase fOI,' year. '. Mayor Nader srared that if the economy was better Council would be justified in increasing the tax but at this eime the Cicy-:oshould be encouraging businesses ae rhis rime. Councilman Malcolm stated he would suPPOrt the morion if it was promised thar sraff would work and bring forth to Council proposed curs in the budget to balance the deficit. Mayor Nader stated he could accept that if credit was given for ruming over the operation of the Youth Center ro the Boy's and Girl's Club. SUBSTI11JTI MOTION: (MalcolmlNader) 1) to continue the public hearing for CWo weeks, and 2) direct staff to bring back a revised schedule that will look at r.illing some of the uses while trying ro come up with a balance within the schedule (keeping in mind that it is the Council's wishes that the !:aXes be reduced as close 4S possible to the current 1evei<). Councilman Moore questioned whether there would be a 5146,000 shortfall in the budget if the Business License Tax was nor increased. He felt the proposed action by Council was appropriare and thar the options broughr back for revie.....' should be varied regarding potencial cuts. City Manager Goss responded that rhe bUdger, in terms of being balanced, was our of balance by approximately S60,OOO of revenues ovec expendirures, therefore Loere was a plus figure for this fiscal year. Councilman Rindone stared he would like to see the net reduction due ro rhe Business License Tax be offser by increases in other areas as mentioned and/or orher budget reducrions so rhis would be zeroed O~t ro be reflective of the downturn of the economy. i'.layor Nader stated that the intent of L1e marion ......as paniJ.IIy COL:.r.terbalanced \'11m Increases i.-:. omer categories with staff coming back with a report L1.Jt ......ould indicate 2??ropriate budget cuts or at Je:lst with staff recommendations. . City Manager Goss scared it would not be acrually reducing Loe rares but raising selected rates and addressing possible budger curs. VOTE ON SUBSTI11JTI MOTION: approved unanimously. 21. PUBUC HEARING FOR THE PURPOSE OF CONSIDERING ABATEMENT OF THE TRANSIENT OCCUPANCY TAX . In October 1990, Council adopred Ordinance No. 2407 increasing the Transient Occupancy Tax (TOn ro a maximum rare of 10% and pro\iding for annual abatement hearings ar which rime the tax could be lowered. Scaff recommends approval of the resolurion. (Director of Finance) Lyman Christopher, Director of Finance, informed Council thar all local horels and motels had been r.oriiied of the public hearing and only one response had been received which was in suPPOrt of staff recommendation. There being no public testimony, the public hearing was declared closed. This being the time and place as advertised, the public hearing was declared open. ~t 6 Minutes November S. 1991 P oge 13 Mayor Nader infonned Mr. Platt thot the oction taken by Council tonight would not in any way extend rhe current contncts of the five [ow com ponies. Action would on:y set the number of componies at five. Upon expiration of Ehe conrracts n~xt year it wiJ! be opened for competi~ive bid. Keith Hawkins, Acting Police Chief, responded that staff was recommending five companies at this rime and that it would be opened for competitive bids next yeor. The current contracts are for three years with one year left on th~ contracts. There was also a waiting list of current contractors that would also be contacted. The RFP had been .published in the past along with individual letters being mailed. Councilwoman Grasser Horron questioned what me RFP process would be at thar rime. City Manager Goss responded that the RFP process would be based on the Ordinance of the City and sem [0 all concracrors in the City that could provide service. 1v1r. Platt felt the Council was picking a "magic" number and that it was to the City's disadvantage to do this. He would be against any specific number being set. Duane PudgiJ, 378 San Miguel Drive, Chula Vista, CA, representing South Bay Towing, spoke in sUPPOrt of the staff recommendation. He stated the current system hod worked for him since 1965 and felt they could COnti....1Ue to operate with four competitors. MSUC (Malcol1n/Grasser Horton) to approve the staff reco=endation to continue to retain five (S) tow companies. --..-~.. Mayor Nader requested that staff notify all interested parries Upon the expiration of the contracts and the new RFP process next year. . - -. - .~~-. . - BOARD AND COMMJSSION RECOMMENDATIONS None submirred. ITEMS PllLLED FROM 1l-!E CONSENT CALENDAR .-. -~~ ~- rtems pulled: 6, 10, 11, and 15. The minutes will renect the published agenda order. 23. OTY MANAGER'S REPORTfS) 01l-!ER BUSINESS a. Scheduling of meetings. No report given. b. Updated Council on the recruitment for a Police Chief. Fifty.five applications were received and due to the large number of qualified candidates the original screening process has been modified. Seventeen applicants will be interviewed with the final applicants going on to the assessme.:,' Center. None of the seventeen fmalists .are from our-of.srare. c. Infonned Council that Chuck Cole, Ad"ocation, Inc., Consult2nr in Sacra;;,ento, would be here t>:ovember 13-14 and would be available to meet with Councilmembers. He will be meeting with the De?artmenr Heads during one of L1.eir regular meetings. COLL'1cilman Moore requested that the Council be imited to the Department Head meeting. /7-~~ ~~ 7 ! i' J Ii k: ", Minutes November 5, 1991 Page 14 " f i'l I,i lid. Introduced Dan Beintema the new Senior Management Assistant replacing Iracema Quilantan in the ' legislative Program. (i , 24. MAYOR'S REPORTCS): , : i, a. Cicy participation in the S"-NDAG Connict Resolution Procedure. The north counties have requested that the south counties participate in the SANDAG Connict Resolution procedure. He felt the procedure was ambiguous but recommended that Council not decline to participate but appoint a delegation to protect the interests of the Cicy. MSUC (Nader/Grasser Horton) to appoint a delegation of Councilman Moore, Cicy Manager Goss or his designee, Councy Supervisor Brian Bilbrey, and Councilman Malcolm to sit down and talk wjth the north councy cities and discuss participation in the SANDAG Conflict Resolution procedure. Cicy Manager Goss stated that due to events happening, perhaps the SANDAG Dispute Resolution should be withdrawn. Mayor Nader responded that this action tonight should not be used as an excuse for delay but on the con tracy, it should be used as a product for acuon. b. Ratification of appointments and reappointments to Boards/Commissions/Committees MSUC (NaderlRindone) to ratifY reappointment of Kacy Wright and appointment of Willi= M. Canedo and Tonnette S. Joynes to the Child Care Commission. Mayor Nader stated he had completed interviews for the Growth Management Commission and would bring forth the eight recommendations as soon as possible. : ~ Councilman Moore stated it was his understanding that the full Council would be involved in the selection process for me GMOC. He recommended that the eight recommendations be given to Council for review before being placed on the agenda for ratification. He felt that a Commission of that importance should be intetviewed and selected by the full Council. .. Mayor Nader stated he was open to any suggestions by Council and unless directed otherwise, he would proceed with bringing forward the names for ratification. Councilman Rindone questioned when the recommendations for the Mobilehome Rent Review Commission \',rQuld come (0 Council. Mayor Nader stated he would have the Mayor/Council secretary pole the members for nominations. After being informed by several Council members that they had already submitted their nominations, Mayor Nader stated he would obtain that information and rerum with appointments as soon as possible. c. Authorization for trip to Ciudad Victoria to attend the Bridges and Border Crossings Conference, November 13-14. This is a semi-annual conference which will be attended by federal officials from the U.S. and Mexican governments. He had been invited by the Transportation Ministry to speak on the proposed airport issue. . MS (Nader/Grasser HarroD) to authorize the Mayor and one staff member to attend the Bridges and Border Crossing Conference, November 13-14, at Ciudad Victoria, and appropriate $1,300 from the Contingency Fund. Councilman Malcolm questioned the cost of the tickets and why a scaff member would also be attending. '1.~ ~ 8 COUNCIL AGL"IDA STATEJ~! Ite~ 11 ITEM TITLE Meeting Date 11/05/91 Report -- Police Initiated Vehicle T~ws; review of appropriate number of tow companies to retain under contract at conclusion of existing three year agreements. ~ SUBMllllill BY Acting Chief of pOlicey REVIEWED BY City Manager (4/Sths Vote: Yes_NoX) Referral No. 2I29 Currently the City contracts with five companies to provide Police initiated vehicle tows: Anthony's, Arnold's, Glenview, Paxton and South Bay. These towing services are provided under separate but identical three year agreements executed in October, 1989. At it's meeting of March 28, 1989, Council directed the Police Chief to hold these companies to improved response time, upgraded equipment, directed abandoned vehicle abatement and performance standards; and, to drop from this' towing referral list any companies unable or unwilling to meet these new standards. The Chief returned to Council on June 13, 1989, with a report indicating that all five companies had, some at significant expense, agreed to meet the new standards, and, that the Department would ensure their compliance with the amended standards. Council last visited this issue in September, 1990, in response to a written commurucation requesting that the towing referral list be expanded. On September 18, 1990, Council approved two staff recommendations: one) that no additional tow companies be added to the list at that time; and, two) that the issue be reviewed again prior to expiration of the current operating agreements. This agenda item is intended to provide Council with such a review. ~'.. RECOl\1ME.t'<'DA TION: Upon expiration af the current operating agreements, continue to retain five (5) tow companies. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable DISCUSSION: This review will focus primarily on three issues: the purpose of a such a program; issues inherent in expanding and (if necessary at a later date) reducing the number of companies on the referral list; and, general staff concerns. '7-~ 1~ 9 .i ,.).. Item "ing Date 11105/91 The purpose for having a towing referral list is to provide fast, e!;'c : emergency and abandoned vehicle tow services on an as-needed basis. Long response tir; ) emergency tow requests adversely impact Police Officer's ability to return to active d~ty. L ,~rgency referrals include accidents, arrests and other calls for service where vehicles are involved and are, for any number of reasons, unable to be moved to the appropriate location without Police intervention. Each company on the !'eferral list is granted an approximately equal share of the emergency referrals each month through a first called rotation. During a typical month, each company is at the top of the list for six days, Additionally, each company has agreed to provide up to ten abandoned vehicle abatements per day for each day they are first up on the referr.3.I list ( each company is first up appoximately six days per month). Abandoned vehicles can be identified by Police Officers, Code Enforcement Officers of the Building and Housing Department or citizens. In any case, these five companies abate abandoned vehicles at no cost to the City as part of the towing program. Expanding and reducing the Teferral list presents several issues. Initially, the number of companies which can provide the services and still make a reasonable profit must be estimated, If too few companies are employed, City initiated tow business is not appropriately distributed and profit is high. Should too many fums be retained, the City's business is not profitable to any of the fums and quality of service inevitably suffers. Staff must also identify the method to be used in evaluating a tow company's ability to provide the services required. In the present case, companies on the previous referral list were asked to meet enhanced minimum qualifications (most incurring significant costs to do so). A Request for PToposal methodology has also been used successfully by other jurisdictions in the County. Additionally, contingencies must be provided in case the number of Police initiated tows falls below that previously identified level where all firms can continue to profitably provide the required services. Determining the method to eliminate firms from the list is problematic. For example, what decrease in Police initiated tows triggers a list reduction (that previously identified level or something below it) and what technique is used to determine which, and in what order, companies are eliminated from the rotation (first in/first out, last in/first out or random)? While firms might drop out of their own volition, this strategy would benefit larger, or more established, operations better able to absorb business segment operating losses. " As stated in previous communications on this subject, the Police Department's main concern is that tow companies provide quality service for our officers and citizens. Staff is not convinced that adding additional tow companies would enhance the quality of tow services. Response times have been, in the main, within contractual guidelines, and, while there have been occasional complaints regarding each of the companies, performance continues to be satisfactory. Staff is sensitive to businesses, especially those owned by Chula Vista residents, which would like to be included on the referral list, however, the number of Police initiated tows bas b= relatively constant over the past three years: 10 l1-)ij. ~~ Page 3 Item -11 Year 1989 1990 1991 (estimated) Police Initiated Tows 3698 3573 3625 Meeting Date 11/05/91 Companies currently ooder contract have averaged approximately 726 tows per year (or 60 per month) over the past three years. Adding a sixth company would reduce that average 17.4 % to about 600 per year. Without a significant increase in the number of Police initiated tows, and in the absence of any other quality/performance issues, Staff does not believe that a recommendation to increase the number of companies on the towing referral list is indicated. F1SCAL IMPACT: None - /7--''1 ~;; - "") ~ 11 r'inures September 18, 1990 Page 6 T minutes during Cicy Council closed sessions, as well as the pros and cons of releasing ttc..' the public, with a special request to consider audio taping as part of the alternatives. Stah Council accept the report. (Cicy Attor,,,,y) .- ,~ion Co ",:ends :6D Councilmembers MalCDlm and Nader vOlcd no. ~ 12. REPORT ENFORCEIV'J;~i': roucy CONCERNING SECDON 1O.S2.i10 OF TI-IE MUN!OPAL CODE. TI-IE PLACEMENT OF "FOR SALE" SIGNS ON PARKED VEHIQ.ES . Staff has reviewed the ordinance with the Cicy Attorney's office and staff has concluded that it is enforceable and serves 3 very useful pUrpose. For uniform icy in enforcement of this ordinance, a written policy has been distributed to all members of the Police Deparement. Staff recommends Council accept the report. (Chief of Police) Pulled from Consent Calendar J-tJ8/ Councilman Nader stated he supported the staff recommendations but wanted to get clarification of the memorandum to be distributed to the Police Deparement. He questioned whether the Depanment would cite in response to a complaint, a car on private properry owned by the pro perry owner. William Winters, Chief of Police, responded that they are advising their officers not to cice for a violation of this section if the car is on a public street, a, L"" department has to "\O'N ,;::!t it was the primary purpose which is difficult to do. If parked in frOnt of someone's home or on a publIc o,:;'eet, the Department prefers to Use the 72 hour section to handle those violations and that is the intent of the memorandum. MSUC (Nader/Moore) to accept the staff reco=endation. ! 13. REPORT PROS AND CONS OF EXPANDING POUCE EMERGENCY TOW REfERRAL UST FROM FIVE TO SlX COMPANIES . At the 8/28/90 Coyncil meeting, Council received a written communication from Mr. Casey Jones requesting that he be added to the police emergency [OW referral list. Staff recommends Council not add any company to the two list at this time and review the issue again when the 'current contract expires in October of 1992. (Chief of Police) Pulled from Consent Calendar m8~ - .. Ed Wood, 140 Center Street, Chula Vista, California, representing Glenview Towing, spoke in favor of the staff recommendations. If Council expanded the list and pUt on anyone that wanted to be on, it would create pandemonium. He felt the process currently utilized was equitable and should be followed. There are currently five companies on the list, each is on for six days, with the companies rotating. Towing assignments are currently once a month. He noted the towing comparues also tow abandoned cars for the Cicy at no charge which takes away from the gross revenues. He felt it would create a financial hardship on the exisring companies, Duane Pudgil, 378 San Miguel Drive, Chula Vista, California, representing South Bay Towing, spoke in favor of the staff recommendations. He has been serving the Cicy for twency.one years and stated he was a local small businessman. They currently have a three year contract for towing and he would like tp see the COntract honored. Councilman Nader questioned whether the contracts contain conditions regarding exclusivicy. Cicy Arromey Boogaard responded that the contracts do not contain any verbiage regarding exclusivicy. was informed that during the negotiating pro<;ess, there was a verbal commitment to the companies. He ,,-31) '4~~ 12 Minutes Seprember 18, 1990 Page 7 William Wimers, Chief of Police, responded thar the only things represemed Co the rowing companies Was thae the Cicy would be doing business with the five companies. He was unaware of any other verbal agreements. Councilman Malcolm questioned whar the opinion was regarding a cOmmitmem ro only five row companies. Chief Winrers responded thar sraff had recommended thar the number be reduced from five ro three and ie was Council's desire ro reeain the existing five companies. He felr the Council had made a cOmmitmenr Co the rowing companies. . Bo Lemler, 34867 Main Screee, Chula Visra, California, represeming Paxton Towing, spoke in favor of ehe sraff recommendarion. He srared the Cicy of Chula Visra had the lowesr raCes of all cieies in the srare. When Council requesred new condieions, the companie.. agreed and purchased the equipmem needed and hired personnel as needed. He scared the calls are down approximarely 30% from two years ago and if another company is broughr in, the companies would nor be able ro give the same service and response rime. He did noe feel ie Was fair Co bring on another Company ar this rime. Peggy Rolling, 316 K Scrrer, Chula Visra, California, representing Arnold's Towing spoke in favor of the sraff recOmmendarion. They have purchased two row crucks in order ro comply with Council's conditions. This Was done in anricipation of being able ro continue ro row for the Cicy. She fele there would be a financial hardship if another company was added. John Clark, 904 Redbud Road, Chula Vista, California, represeming J. E. Towing Inc., spoke in favor of ehe Staff recommendarion. He fele ir would be wrong ro add another company ro the lisr ar this rime. He nored the high cosr of equipmem and operarions. He also requested thar Council keep in mind the needs of the row companies when rezoning areas of the city. Casey Jones Jr., 178 Minor Avenue, Chula Vista, California, represenring Eagle Towing, spoke in opposirion ro rhe stalf recommendation. He sraeed he had researched the number of cars rowed within the City OVer the 12sr year and felr the Council would be surprised ae the large number. ~. ~. -- Dawn Herring, Principal Managemene Assisram for the Police Departmem, srated there were 3,698 rows in 1989 with 2,449 rows from January co Augusr 1990, which is a 3% decrease from 1989. Mayor Cox srared there Were six or seven companies on the waiting lisr and quesrioned whether rhese companies would be considered in 1992. Cicy Manager Goss responded thar those companies expressing inrerest would be included for review in 1992. Mayor Cox felt the sysrem ucilized worked very well. If Eagle Towing were ro be added to the list, ie could be expecced thac the same requesc would be received from the five other companies on the wairing list. He would recommend that Council accepc rhe Staff recOmmendarion and ask sraff to begin a process ro evaluace the towing service in conjunceion with 1992 and come back to Council nine to twelve months prior to rhe expiracion of the concracrs in Occober 1992 and lay our what rheir recOmmendations would be in regards ro rhe cominuacion of rowing services in the Cicy along with alcernarives: Oprions should be made available for the Council to consider. Councilwoman McCandliss srared Council had felc thac the five companies could respond ro the Cicy's needs and the companies had complied with the conditions see by Council. She also felt ir Was an exclusive agreemem and thae Council had a responsibility ro honor it. - I!j, ~fJ--- 13 Minutes September 18, 1990 Page 8 Councilman Malcolm replied rmn:me testimony had made a difference Ui ho','; : ' , He felc there could be changes, but he had not remembered requiring the five tc'.. equipment, ecc. He complimented Mr. Jones for working with the staff and C.... He also felr thar the City should have a minority ser.aside program. He" recommendations because of the amount of money spent by the five contracted '~..(, Council's condirions. ",garding the issue. ;-;panies to purchase . 'Jrding his requesr. \'es for the scaff :'panies (0 meet , ; ! , I MSC (MalcolmlMoore) ro accept ~taff reco=endations and direct staff to bring back a report within the next twelve months on how the City will deal with the problem, how many towing companies are proper, and when the contnct will go out to bid. ' A minority ..,t.aside progr.am (ie. County of San Diego) is to be brought back to Council within the next n.inety daY' for review. . City Attorney Boogaard srared he had done extensive research on the ser.aside programs and in the lasr ren years there were three major Supreme Coure cases which limired the ability to permir ser.aside programs on an echnic based classificarion. He would like che opportunity to review che report with the Police Deparrment and provide a legal analysis. Councilman Nader srared he would ""pecr Io see included in the reporr a program that assures OPpommity to minoriry o\VT1ed businesses and a b:.si:, (">-:- Council to determine the optimum number of towing companies for a ciry the size of Chula Visr~. VOTE ON MOTION: approved unanimously. . . END OF CONSEN'; , ENDAR . . PUBUC HEARINGS AND RELATED RESOLe.- " :':'::IS AND ORDINANCES None Scheduled OTIiER BUSINESS 14, ORAL COMMUNICATIONS. None. 15, ITEMS PUll.ED FROM TI-1E CONSENT CALENDAR (Items pulled: SC,9, 12 and 13) The minuces will reflect the published agenda order. 16. CITY MANAGER'S REPORT(S) . None. 17. MAYOR'S REPORT(S) a. Ratification of appoinnnenrs to Boards and Commissions: Safety Comrnission f1.:,B3 MSUC (Moore/Cox) to appoint Frank Chister ro the Safety Commission. b, Establishment of a Blue Ribbon Committee for review of the City's Draft Housing Element Update (1991-1996) 1'I,g8'f u I I . ~~-- ~ 14 ATTACHME~;':.' . COUNCIL AGENDA STATEMENT I tem----11- Meeting Date 9/~/90 ITEM TITLE: Report Police Pros and Cons of expanding the Emergency Referral TO~ing list. SUBMITTED BY: Chief of ~jw REVIEWED BY: City Manager (4/5ths Vote: Yes NoXX) Referral # 2106-- -- At the August 28, 1990 Council meeting the Council received a ~ritten communication from Mr. Casey Jones requesting that- he be added to the existing Police Emergency To~ing Referral list. Staff ~as directed by Council to research the issue and present the pros and cons of adding additional to~ cDmpanies to th~ emergency to~ referral list. RECOMMENDATION: Do nDt add any additional to~ companies at this time, hD~ever recommend revie~ing this issue ~hen the existing agreements expire in October of 1992. / BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: In October Df 1989 the entered into an operating to~ companies ~ho ~ere on These companies include: Paxton's and SoQt~ Bay. City Council, by resolution, agreement ~ith each of the five the referral list at that time. Anthony's, Arnold's, Glenvie~, :..-- - - AS part of this ney contract each company yas required to enhance the level of service provided in Chula Vista. This enhancement included the requirement to have four (4) tOY trucks of varying kinds, increased levels of insurance, as ~ell as specific types of equipment to be carried on each truck. In order to meet these qualifications each of the companies invested in ney equipment and insurance personal cost averaging around $35,000 each. This Yas ~ith the anticipation of receiving 20% of the referrals for lhe next.3 years. The Police department assigned each of the five (5) traffic officers to a five at a done tOY has to~ \ w 15 ;., company to monitor each ctnllpany and cond1.'ct inspections. To date the Depazuent is satisfied 'col quality of service provided by all five companies. :-.e , ; , , While the Department recognizes the merit of hel Chula Vista resident to start his oyn business, circumstance Ye do not believe that there is Sue: information indicating that a ~ange in the current of the tOY list yould be of be~fit to the City. Council also requested cl~Iifi~ation of the ow~ership the primary business location of the eXisting 5 tOY companies. As you yill note in this chart the existing five companies all operate in Chula Vista and are oyned and operated by Chula Vista or Bonita residents, except in one case. a , Is :It us Company Yrs in CV Primary Owners Comments Business Residence Location Location Anthony's 25 Yes Bonita WBE (1 ) Arnold's 54 Yes Bonita (2 ) G1env ie w 4 No EI Cajon (3 ) Paxton's 54 Yes Bonita South Bay 21 Yes Chula Vista (4 ) 1) WBE stands for Wo- oyned Business Enterprise 2) Arnold's is legali; ryned by son-in-lay of founder yho is currently yorki-' O1lt of state. The business is being operated by th<c 'aughter of the founder. 3) Pr!~ary location is in ~pring Valley, yith branches in Elajon and Chula Vist~ 4) Oy;.' ~ started a second t, ,; company (Fe,,:' "0) in last fey year, Yhich operates in Po. and Hir~, As a note, each of six days per month, days per yeek. these companies tOYS fo~ r ' :a Vista and picks up abandoned vec" .:s one PROS AND CONS OF ADDING ADDITIONAL TOW COMPANIES Pros * Additional tOY companies Yill have an opportunity to participate in the emergency tOYing service. ~ ~ The City negotiated in good faith Yith the existing fivt:ompan!~s and has indicated that they yill be the providers G~ COY service until Oc~ober of 1992. ~ Adding one or more additional tOY companies will not itt ',c ,- 16 improve the quality of the emergency tO~ing service in Chula VIsta. * Adding any additional to~ companies ~ill reduce the amount of revenue each to~ company receives. W1th the goal of providing the best service to Chula Vista ~e believe that further dividing of the "revenue pie" ~ould tend to reduce the responsiveness of the to~ companies to the requests of the City. * Additional staff time ~ould be required to inspect and monitor the additional to~ companies and investigate complaints. ~ If Council elects to add any additional to~ companies, this can be accomplished by Council Resolution. The five existing companies ~ere selected by Council Resolution and the City Attorney has advised staff that there is no legal restriction to increasing the number of to~ companies on the referral list. If a'\--eJ::;~"~u,, is made to the referral list, staff recommends that), the selection be made through the RFP process. aj~+~~ Currently staff has a companies in addition to the to~ing rotation. The ~aiting list Hr. Jones, ~ho list includes: of six (6) to~ are interested in Company Primary Business Location HBE/WBE Ecology Santa Fe 'Spr ings, CA NO Aloha Chula Vista HBE (1 ) Platt Chula Vista NO A to Z To~ing Clairmont Mesa ( 2 ) NO Rhode~ay Chula Vista NO J C TO~ing Chula Vista WBE (3 ) '0--- }) MBE stands for Minority o~ned Business Enterprise 2) Has a branch in Chula Vista 3) WBE stands for Woman o~ned Business Enterprise In summary, staff recommends that the City maintain the five company rotation until the current agreements terminate in October of 1992. Attached for information is from June 13, 1989 ~hich company referral list. the Council Agenda statement established the current to~ FISCAL IMPACT: None ~ith this action /7 ~3' 8 .()..-:t 17 1 I , '. .,- i' . I, r")~ c.-, f": __.~ . "j COI150-Vl-r 4-D- \ RESOLUT!DN NO. 15804 Rc.-:c.'JTfON OF "IE CITY COIJNCIL OF THE CITY OF CHUe.. =TA APP;: "!G RAn-PEASE FDR THE POLICE REQUESTED 'iG SERle The City CounLi: of, the City of Chula Vista does hereby resolve as follows: ~ WHEREAS, the tow companies have contacted the Pol ice Department staff with a request to increase the rates for Police 'requested tow service, and WHEREAS, the current rate schedule was adopted on September 8, 1987 and the Chief of Police now recommends the adoption of the followin9 rates: 8asic Tow Rate $ 55.00 2.50 Charge for Each Mile aftc. the First {'1ile Daily Storage Charge 1. SO/hour Maximum $12.00/day Dry Runs 20.00 30.00 Use of Dolly Labor at Scene afL: :.,-. 30 mi nutes 12.00/ 1/4 hour Charge to Release Vehicle a fter norma 1 hours - 25.00 Heavy Duty Tow Trucks (No add'l mileage) Heavy Duty Storage Rate (Vehs. over 18') 150.00 2.00/hour 20.00/Maximum NOli, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve a rate increase for Pol ice requested towing as set forth hereinabove based upon the recommendation of the Chief of Police that said increase is justified. ~i = It 1B Resolution No. 15804 Page 2 BE IT FURTHER RESOLVED that said rates will be effective upon the adoption of this resolution. Presented by Approved as to form by " ;LA~ Bruce M. Boogaard City Attorney . -.. - 11 -3D- -1a' - '8. ~ 19 p/Cj:,z,.- ' .! t:cUNCIL AGENDA S"l,7!f;L" Item ITEM TI TLE : Resolution - Approvi . ate Increase for the Police R~uested TO~ing Service Chief of p~yM ~ting Date 8/21/90 SUBMITTED BY: , REVIEWED BY: City Manager (4/5ths Vote Yes No XX Council Referral H1933 At the March 27, 1990 City Council meeting, D~ayne Pudgil of South Bay TO~ing reguested that the City evaluate a propOsed increase in the Police Emergency To~ Rate Schedule. Mr. Pudgil presented the proposed increases as they ~ere agreed to by the existing five (5) authorized Police Emergency To~ Companies. RECOMMENDATION: Adopt the Resolution approving the proposed increase in the to~ rates. BOARDS/COMMISSIONS RECOMMENDATIJ~' "fA DISCUSSION: ~ The existing September 12, follo~s: Police Emergency To~ 1987. The existing Rate SChedule ~as revised and proposed rates are as .. Current E'roDosed Rec. Survey Av. ~ Basic To~ Rate (Day and Night) $44.00 $55.00 $52.00 55.00 Mileage Charge (after 1st mile) 2.25 2.50 2.30 2.50 Storage Charge (daily) 10.00 Max. 12.00 Max. 11.33 12.00 Max. Storage Charge (Hourly) 1. 00 1. 50 1. 67 1. 50 Dry Runs 20.00 20.00 20.00 20.50 Dolly Jobs 25.00 30.00 28.25 30.00 'l-~ ~'3D 20 ,,' Page 2, Item I/) Meeting Date~ Labor at Scene After 1st 30 minutes 10.001 1/4 He 12.001 1/4 Hr. 10.83 12.001 114 Hr. 114 Hr. Heavy Duty To~ Trucks (no add'l mireage) 100.00 150.00 110.00 120.00 Heavy Duty Storage Rate (Vehs. Over 18') Hourly Daily (per licensed Unit) 2.00 2.00 --* 2.00 18.00 Max. 20.00 Max. --* 20.00 Release of Vehicles or Property Removal After Hours (5:30 PM to 8:00 AM, Sat, Sun & Holidays) 20.00 25.00 26.50 25.00 *Charge unique to Chula Vista A survey ~as completed of local jurisdictions (San Diego, El Cajon and National City) ~hich have similar circumstances as Chula Vista. The rates proposed appear reasonable based on the average rate from the survey. The only rate ~hich ~e questioned is the heavy duty to~ rate of S150/hour. Since the survey average is $110. ~e ~ould recommend increasing the rate from the $100 currently charged to $120, ~hich is the same fee in San Diego. ........ . - We believe the increase is justified since it has been three years since the last increase and in that time span ~e have seen significant increases in the purchase price for tow trucks and increased gasoline and repair costs. These proposed rates should become effective immediately upon adoption by City Council. FISCAL IMPACT: None WJWIDH/amh TowRate I 7 -1ft ~\ 21 Resolution No. 15804 Page 3 PASSED, APPROVEO, and ADOPTED by the Ci >0 Vista, California, this 21st day of August, 19Y:: :1 of the City of Chula ~ following vote: AYES: Counci 1members: ~1a 1 co 1 m, ~Ioo' NOES: Councilmembers: None ABSENT; Council members : McCand1iss ABSTAIN: Counc i lmembers: None :der, Cox ~. g;.~, ATTEST: erK STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ss. _. --- I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 15804 was duly passed, approved, and adopted by the City Council of the City of Chu1a Vista, California, at a regular meeting of said City Council held on the 21st day of August, 1990. Executed this 21st day of August, 1990. 11 . ~O ~ )6- 22 ,<,.1(11 . '8 ru.o/I c. ~ 5-I1/-"~' . - - I RESOLUTION NO. 14135 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE DIRECTOR OF PUBLIC SAFETY TO ENTER INTO A THREE YEAR AGREEMENT FOR POLICE REQUESTED TOWING SERVICE WITH THE FIVE EXISTING COMPANIES ON THE TOW REFERRAL LIST The Ci~y Council of the City of Chula Vista does hereby resolve as follows~ HHEREAS, at the March 28, Council was presented with a report the process with which tow companies 1989 City Council 'meeting, recommending the revision of are selected, and process addition HHEREAS, to select to making that report recommended initiating an the three most qualified tow companies, the qualifications more stringent, and RFP in WHEREAS, Council directed staff to return with an amended ordinance requiring higher standards and to keep the existing five companies rather than going to a RFP process. NOW, THEREFORE, BE IT RESOLVED that the City Council of the Ci ty of Chula Vista does hereby author ize the Di rector of Public Safety to enter into a three year agreement for Police requested towing service with the five existing companies on the tow referral list. Presented by "s to form by .-. /Jllik) {J41~ H~\;iam. J '.,\'I~~:ers~/Director Oc - uol1c <o...~ .--d~ 5793a omas 'Cron, City Attorney I j,l ~ 1</-J--- 23 ': I ADOPTED AND APPROVED BY THE CITY COUNCi! THE CITY OF CHULA VISTA, CALIFORNIA, this 13 day 0 f J Uj~e 19 R9 , by the following vote, to_it: AYES: Coune i 1 members Cox, Noore, NcCandliss. Nader NAYES: Counei lmembers None , ABSTAIN: Counei lmembers None ABSENT: Counei lmembers Nalcolm i , " Q /?;~ _ Mayor \ > . .'., / ATTEJ> ~/??~ _ ;?L. ":~ U City Clerk c:--r Vista " STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA ) ) ss. ) -- SO HEREBY CERTIFY that the above and foregoing is 0 full, true and correct copy of I, JENNIE M. FULASZ, CMC, CITY CLERK of the City of Chula Vista, California, R~SOLUT ION ,'10. 14135 ,cnd that the same has not been amended or repealed DATED 7-&. 29 ~,~,~ (].jt 24 ,CC-660 flI.~lJiE:S - 15 . ffarina Garelis, 60 K Street, addressed the no stating it should be allol/ed, that traffic cannot Cl ub Drive and urged Counci 1 go back to where it up there. June IJ, 1989 Cauncilllor:Jan ~!cCandliss .er.1phasized the decision is difficult but she cannot support a cuI de sac as appropriate from any standpoint. She would support, on a trial basis, the no left hand turn as long as r:Jonitoring aSSures no impact on "K" Street. The goal is to solve problem \;jthout creating new problems in any fashion for the neighborhood. Councilman Nader agreed. Mayor Cox did not sUPPort 'th~ cul de sac and stated his concerns of the people going eastbound on K Street to First Avenue and continuing on to Country Club. He stated the Savel property. as an extraordinary awkward intersection and a need to remedy the access or channel traffic in a more appropriate ~ay. left hand turn get into Country was and put signs NOTION M (,'100re) to di rect Sta ff and the Sa fety Commi ss i on measuring the effects of eastbound traffic and (Motion died For lack of d second. to consider Si erra \.lay. TrafFic E:ngineer Rosenberg conFirmed the traFFic COunts were made prior to the last phase of improvements in the area. ,'.fr. Garelles, 60 K Street, urged Council to enForce the speed 1 im i ts . ~1QT! ON ,'-IS (COx010ore) to direct staff and the Safety COr.1mission to speciFically come up with current traffic counts and Current speed surveys given the fact modifications were made; that staFf and the Sa Fe ty Commi ss i On look a tal terna te si gnage at Si erra Way and ~'__ Country Club Drive to see if the mOdiFications would be appropriate for the residents in the area. SUBSTITUTE MOTION If S (N a d e r / j'1 C Can d 1 i s s) t 0 ado p t the s t a f f r e Com men d a t ion but to delay For six '''eeks while staff obtain the Current counts, and Pl'ior to implementation of the staff recommendation, to Come back / i fit s how san y va ria t ion s 0 f s i g n i f i can t d a t a . (110 t ion fa i 1 e d ; Mayor Cox and Councilman Moore voted no; Councilman Malcolm absent) VOTE ON THE nOTION D ass e d . ( Co un C i 1 man /., a I co 1 m a b s en t ) _ '___"___ ""'_ "_"_'-=_>~..,,=.--=.~.~,,_ .- _ ~"_.-~.._ '.~ ........--=-:-:. "7:-- ~~~:___:_......-=-_~_..-:-'::..::..:~-. __. ".: '_::-:"_. .~_ ,__. ..... '___'. ... _.___. . 13a ORDINANCE: 2314 AMENDING CHAPTER 5.58 OF THE MUNICIPAL CODE RELATING TO REGULATION OF TOW . /" COMPANIES FIRST READING (Director of V Public SaFety) _ FIRST READING b. RESOLUTION 14135 V' AUTHORIZIIJG THE TO ENTER INTO A POLICE REQUESTED FIVE EXISTING REFERRAL LIST ~c1 DIRECTOR OF PUBLIC SAFETY THREE YEAR AGREEMENT FOR TOWING SERVICE WITH THE COMPANIES ON THE TOW 25 :,1 I IIUT~ S - 16 - "ne 13, 1989 I I f I l i The amended ordinance requires higher standards 0' ex i s tin g f i ve co mlla n i e s rat her t h a n go i n g to an R ''', implementation of the higher standards and ho'; ".: cOr.lpanies account<lble for r:laintaining those ,_ department believes the service provided will alsc i proposed revisions to the current agl"eement include equipment requirement and positive citizen/Police rel, '.0 keep )rOcess. ng the dards, "Qve. ", n S e the By tow the Major time, D u an e P u d g i l, Sou t h Bay Tow i n g, 378 San ~1 i g u e 1 Dr i ve , ~ p 0 r t e d three companies had contacted him to state their concurrence with thi s item but requa.s t the requi rer.lent for a three year agreemen t be changed to a non-~nding situation. I ;'i I' ,. Joe Kellejian, 825 Energy" Way, Ecology Auto ,:ireCking, stated his support of the staff recommendation for five tow companies if they meet the new qualifications but asked for clarification if the companies do not perform as noted. He questioned whether the Director of-Public Safety evaluation of replacement applicants for the posi tion woul d come before Council. He al so referred to the City's applications being sent to all tow companies in San Diego County and his fee] ing the companies should be selected from this area. Director of Public Safety Winters offered that a problem sometimes exists, as happened in the past, a company was sold and the ne>l owner took over a current contract. Councilman Nader emphasized that, although the Council may by resolution authorize the Public Safety Director to r:lake the selection, Council would certainly retain the authority to change or amend the process at any time. Clay Platt, Platt's Towing, 395 Mitchell Street, Chula Vista, stated he is not in support of the recommendation, Mayor Cox referred to the process of selecting a new company, and his expectation that final action should be taken by the City Council as taken in similar actions with licenses to operate On behal f of the City. City Manager Goss reported it is discretionary justified on how much detail Council wants to get into but certainly judgements have to be made. Director \iinters reported he would not be reluctant to share any deci sions with Council. ......... ~ - Councilman Moore referred to the COr.lments of one speaker asking to "restrict to Chula Vista companies only" and City Attorney Harron confirmed the restriction has been reviewed for contracts across the board. Only in very 1 imited cirCUr:1stances and with sufficient findings, can the City limit to just certain companies. The use of' bonus points require the sar:le technique. MOT! O,'! ;~SC (Cox/tJader) to modify the Ordinance to reflect the concerns of Council, (Councilman Malcolm absent) ~ 26 II !.'II.:TE 5 - I 7 - June 13, 1989 ~fO TrOll M (Nader) to reconsider this item. second. ) (Motion died for lack of a ~IO T 10/1 ,., S ( II ad e r /;.1 c Can d) i s s ) to Public Safety Director to any 10caJ towing service proposed a9reement. Oirector Winters -questioned whether ten companies should be s e 1 e c t e d i f all qua"l i f Y wit h the s tan d a r d s; t hat t his w 0 u 1 d si9nificantly impact their business after the compa.ny's invest;;Jent of f'luch money to meet the standa'rds; and reported the additional things tow companies are asked to do such as the large number of abandoned vehicles removed each day. amend the resol ution to authori ze the enter into a three year a..greement with meeting the standards set forth in the Councilman .Iiader withdre" his motion >lith the agreement of the seconder. :.fAYOR COX reading of unanimously. OFFERED THE ORDIIJANCE which was read by title, the the text "aived by unanimous consent and approved (Councilman Malcolm absent) I'IAYOR COX O,=-FE,~EO THE RESOLUTION I;hich was read reading of the text waived by unanimous Consent "1anir.lous1y. (Councilman Malcolm absent) ---- --~~...-: -.. by title, the and approved ~J. CITY MANAGER'S REPORT -,.=~.:=-:-.~~-~-.~ ..7 ~7"'-__"_ __._Y.._._.._ '"._ -___""L '~_'_~_'~~--:.-::=--:-: a. SC/ledul ing of Council meetings - The Wednesday, June 14 Budget Session scheduled for 7:00 p.m., will include the Boards and COf'1;;JiSsions and other departments, carryover from this Meeting and the crp Budget. A reminder was given that at the City Council ;,'orkshoo scheduled for June 22 the items planned for discussion inc)~de the Civic Center Master Plan and a Planning Item relative to a small lot subdivision north of East "H" Street. -". -- 22. MAYOR'S REPORT a . Co unci I Referra 1 s pending and coul d staff to bring a written Or 'Jerba1 - Mayor Cox addressed 50 referrals which are be completed orally by staff and directed s tat u s 1 i s t to Co u n C i I n e x t I; e e k Iii the i the r type rep ly. ?- _ J. C 0 U U elL C 0 ,'.~ ,'j E.'J T 5 : 0 U 11 C I U.I A II I: C eRE a. Legishtive Report for Council Action Counci 1 .Referral R e co ve r y ,'J e t \01 0 r k ,'10. 1528: AB 901 Study - SUPPORT (C. Green) Stolen Vehicle , 7 - iJ~ ~. 27 ~--~ , ~---." ~-- -. COUNCIL AGENDA STATE HE , " Item ,g Date 6/13/89 ITEM TITLE: a) j i nance AmemJi ng S ce,"' " 'e relating to regulation of tc" ,:c:1oan of the Municipal b) R,,:;:ol uti on Authori zi ng Safe-ty to enter into a 3-year iJ towing service with the five eXl referral 1 i st J{~J Director of PUbli) ~~fety The Director of Public '"m~nt for Pol ice requested :,' companies on the tow SUBMITTED BY: REVIEWED BY: City Manager (4/5ths Vote: Yes No X ) Council Referrar-#~6 At the March 28, 1989, City Council meeting, Council was presented with a report recommendi ng the revi si on of the process with whi ch tow compani es are selected. That report recommended initiatin9 an RFP process to select the three most qualified tow companies, in addition to making the qualifications more stri ngent. Council directed staff to return with an amended ordinance requiring higher standards and to keep the existing five companies rather than gOing to a RFP process. RECOMMENDATION: 1. Place on first reading. 2. Adopt the resolution. BOARDS/COMMISSIDNS RECOMMENDATION: Not applicable. -~~ - - DISCUSSION: The existing policy for Police-initiated tows allows any tow comoany meeting the minimum qualifications to be placed on the active list at any time. Each company is then granted their equal share of emergency referrals for a specific number of days each month. The resulting effect on the tow companies when a new company is added is a reduction in the number of days per month that the tow company gets referral s. For tow companies that rely to a great extent on police business, each additional tow company added to the list means a reduction in their business and profits. The Police Department's main concern is that the tow companies provide quality service for our officers areG citizens. If a tow company consistently has long response times, this affects the Police Officer's ability to return to active patrol, si nce they must wait for the tow truck to arrive to clean up an area after an accident. In addition, a driver with limited understanding of their equipment can mean additional damage to a citizen's vehicle. 28 11- cl6 ~ 38"" ~~ Page 2, Item l I) Meeting Date67Ii71f9" Proposed High Qualifications Requirements By implementing the following higher standards and holding the tow companies accountable for maintaining those standards, the department believes that the service provided will also improve. The existing five tow companies recommended impl ementi ng the hi gher standards and have agreed to the proposed changes listed below. The higher qual ifications proposed for the new agreement are basically an enhancement of the existi~g minimum qualifications found in th~ existing agreement. The following are the major proposed revisions to the current agreement: 1. Response Time Current Agreement 20 minute response time Proposed Agreement 20 minute average response time not to exceed 40 minutes. Tow companies to immedi ately noti fy police dispatch if they will not arrive within the 20 minute response, tow compani es will gi ve a revi sed E. T .A. or recommend call i ng another company if response wi 11 be del ayed beyond 40 minutes. 2. Equipment Requirement -:;::-. ~ Current Agreement Two twin boom trucks, 10,000 grcss vehicle weight (GVW) with dual rear wheels. Proposed Agreement The following four (4) trucks are required as a minimum: 1 wheel lift - 14500 GVW 1 roll-back - 14500 GVW 1 twin cable/boom - 1 ton or above 1 hydraulic boom - 1 ton or above 3. Winch Current Agreement Proposed Agreement To be power-driven in either direction and equipped with an adequate braking system. To be power driven by power take-off from transmission equipment power-up and power-down. !~y 29 I' , , " " I ?~qe 3~ Hem " ting Date 6'/13/89 1: 1 4. Positive Citizen/Police Relations Current Agreement None . Proposed ~~,. -nt Good re,1L..,at' for dealing with the public. low company may be removed from the acti ve 1 i st as a result of excessive citizen and/or police complaints. 5. Abandoned Vehicles Current Agreement The on-duty tow company will tow at least five abandoned vehicles each day (Monday through Friday 8:00 a.m. to 5:00 p.m.) at no cost to the City. Proposed Agreement The on-duty tow company will tow up to ten abandoned vehicles each day (Monday through Friday 8:00 a.m. to 5:00 p.m.) at no cost to the Ci ty. Ordinance Amendments Chapter 5.58 of the Municipal Code related to tow trucks is proposed to be amended. The changes include: Section 5.58.030 Regulations Generally. Cl arification of 1 anguage and removing the 1 iabil ity for damages issue which will be addressed in new Section 5.58.075. Secti on 5.58.070 Secti on 5.58.080 Insurance Required. Bond Requi red. ~--- Both sections are recommended to be deleted from the Code. Since the requirement levels for bonds and insurance fluctuate, it is more appropri ate to refer to these requi rements in the contract that they may be easily revised as necessary. Section 5.58.075 Indemnification and Hold Harmless, Insurance, and Bond Requi rements Any agreement to provide tow service shall include a hol d harmless cl ause and bond and insurance requi rements as requ i red by Ci ty Risk Manager and City Attorney. Recommendation The Department will evaluate the existing five companies to insure that they meet the proposed requirement. Should any of the five fail to meet these new standards we will not enter into an agreement with them. In order to select a 30 ~ Page 4, Item I, Meeting Date~ rep1 acement company we will notify all 1 icensed tow companies in San Diego County. In fact, we currently have a 1 ist of companies who have expressed interest in the contract who appear to meet the qual ifications. The Police Department would evaluate any app1 icants to detennine- the most qualified repl acements. The fi na 1 fi ve compani es sel ected will be subject to stri cter qualifications and will be closely monitored to ensure that they continue to meet the tenns of t~eir contract. The Department believes that by implementing the proposed chanqes in this program, the result will be more efficient and effective tow service for the police officers and the citizens. FISCAL IMPACT: No change is recommended for the current tow rate fee schedule. In the past, changes in the rates have been made only after staff has analyzed requests from the tow companies and presented a recommendation to the Counc il . \lpe 0137N -- --- /l~~ 31 I; ~ THIS PAGE BLANK 11-s1) ~~ --- . ., .......... .. ~ -- .....;...:.,..., ""'....,.....,.1 11'..... ,.....u..:: i ~ ...rc \.H.0.,,", --- 3 v Ivfuyor Shirley Horton and Memb= of Chula Visb City CounciJ 276 FoW1h Avcn~ Chula Vista, California 91910 March 4, 1995 Re : Towing Services - March 7, 1995 .'\gcncL1 Item #13 Dear Mayor FIOI1On and M=befS of Chula Visb City Council . On behalf of the 5 current provid= of towing ~ccs to the Chula Visb Police Th..>partmcnt , we rcq~st your support of Ali=rive 1 of the Council Agenda Sbt=cnt. We are preparcd to offer the City ofChula Vista, Full Cost Recovery (FCR) as indicated as the shortfall on pages 6 and 7. The City's cost for the poli"", towing program is approximately $266,000. Currently the City rcccives appm~tely $100,000 from the Abandoned Vehicle Abatan=t fund (A V A). In aflrlition, the City receives approximately S100,OOO for rcimbur>cmcnt from it's Negligent Impound Payment program (NIP). Therefore the Shortfall is approximately $66,000 on 3,500 tow calls, or $1&.86 per calL City staffis recommending an RFP process that when completro (approximately 90 days) may or lIL1y no[ provicic full cost recovery. The 90 day time line is at best a minimum, in fact the City of San Diego's RFP process took 2 years of staff time to complete. The funds that we are proposing arc available inuncdiately, not at a future date. Staff has indicated "the exemplary compliancc record of the existing firms" page 8 , shows that the syst= is not broke, however the City is exp::ricncmg a cost, short-fall in regards to the towing progr=. Of the 5 companies c=t!y under contr.ac~ 2 arc WBE and.ill 5 businesses are long term members of the Chula Vista business community. We currently collect the 1\1P fees for the city and remit those fo:es in a timely manner. (approximately $100,000 yearly) The process to account for and remit the Referral Fcc is already in place. CancJusion : We rcq~st your support ofAltemative 1, which would keep in force a system that is "not broken", kcc:p this important servicc in the City of Chula Vista, and immediately generate revenue for the general fund. <O:!<-- _ Anthony' 5 T o""ing 305 E Street Chula Vista, CA. 91910 Jeanette Charlton Arnold's Towing 1187 WalnUt S!rcct Chula Vista, CA. 91910 Peggy Rollin GI.:nview Tov,ing 140 Re~ Court Chula Vista, CA 91911 Ed Wood Pa:wm '5 TO>;>'1ng 3487 ~ Street Chula Vista, CA. 91911 Bo Lemler South Bay Towing 619 K Stecet C1mla Vista, CA. 91910 Duane Pudgil ~j- TOT":;L P.C2 ~ . , r I ,.-.- ~-~- Minutc:s March 7. 1995 Pag~ 6 ,;/-r7/J{11I /J1r,{,fj 3 · William Tuchschc:r, 3633 Bonita Vc:rd~ Drivc:, Bonita, CA, re:pr~sc:nting: Jode:n Enkrpris~s, r~u~stct.l that th~ 24 months time: frame be includc:u with v~ry stringe:nt be:nchmarks. That would he more beneficial than ~nchmarks without the 24 month time: frame. That would giv~ the propon~nt of the project the: ability to repr~sen( to prospective investors and I~nders and that they did control th~ property and had thre:sholds to meet. The;: Citron's Were contident that they could m~t those thresholds and move forward with the project. Councilmember Moot stated the motion was to have: stafr bring: hack a proposed semi~exclusive negotiating agreement for Council approval and that it be brought back in a till1~ frame: staff fdt comfortable: with. Council could then give th~ Citrons what they ne:.:eJed to go forn'ard. Councilmember Rindonc: clarified that it was up to 24 months. Mayor Horton stakd that was correct. VOTE ON MOTION: approved 4-0-0-1 with Fox ahstaining. . . . Council met in Closed Session at 6:45 p.m. and reconvened at 7:47 p.m. . . . !\1ayor Horton stated no r~portahJ~ actions were: taken in Close:d S~ssion. . . Council recessed to the Rede\'elopment Al.:enc)" m~tin/..: at 7:~ p.m. and ret:on\'cned at 8: 18 p.m. . . 13. REPORT . POLICE INITIATED TOWING SERVICES -- RATE SCHEDULE AND SELECTION OF SERVICE PROVIDERS - The City currently contracts with five companies to provide Police- initiate:d vehicle towing and storage savices. The firms have r~ueslcd thaI Council review and ame:nd the e:xisting tow rate structure. Staff has c:vaJuate:d the: reque:.:st and is nut re:.:commemling a tow rate:.: incrase at this time:. Additionally, based upon prior Council direction. Polict: Department staff has designed a cornpditivc process to select providers of Police-initiated towing and impound se:rvice:s afte:r 6/30/95. The: re:rort discusses both the operator's proposal to incr~se tow raks and the: components ami time-line for the: comretiti\'~ process n:commcndcJ hy staff. Staff recommends Council defa any increa:-;o:::; in towmg <-lOll storage: rales until the conclusion of the: proposeu comrctitiv~ process. (Chid' of Police:) Richard Emc::rson, Chief of Police, statc:d it had been approxirnatdy thirty ye.ars sinL'e: som~ of [he: tow companies had he:en involved, i.e. ove:r 100,000 tows. The City Was looking for a competitiv~ pruce:ss and a re:ferral fe:e and the towing operators were: looking for a ralt: increase. Staff had rcceiveJ a FAX from the: five existing tow operators which had been distrihukd to Council for re:.:view. · Gwrge Bagdaharian, 9640 Alto Drive:. La Mesa, rerrcse:nting Alcon Towing. rC4uc:,StcJ the City utilize: a competitive hid. · Pe:ggy Roland, 622 D~I Mar Avenue, Chula Vista, CA, representing Arnold's Garage, requested support for Alternative # I and a raise: in fees, · Ed \Vood, 140 Reed Court, Chula Vista, CA, re:prc:se:nting Glenvic:w Towing, rc:quc:st~ support for Alternative #1. · Jeanett~ Charlton, 305 E Street, Chula Vista, CA, re:pr~se:nting Anthony's Towing r~4ue:steJ support for AJtc:rnative #1. · Bo Lemler, 3487 Main Street, Chula Vista, CA, re:pre.sc:nting Paxton Towing, Inc., re.quc:ste:d continuance: of existing program for 18 months to study the: issue. · Clay Platt, 395 MontcJair Street, Chula Vista, CA, represe:nting Piau's Towing, support~ Alte:rnative #2. The problem he:.: had encountered was the: zoning requirements of the: City for a towing/automohile storage lot. · Brad Ramsey, 5320 Overland Drivc:, San Diego, CA, re:presenting A to Z Metro Towing ope:rating out of 850 Energy Viay, Chula Vist<i, requeste:.:u support of Alternative #2. '1.. # Minut~s March 7. 1995 Page 5 Mayor Horton stat~d sh~ had originally \'ot~t..! ag.tinst th~ pro.i~ct b~caus~ sh~ did not f~1 th~ .sil~ wa.s aLlt::quate: to support a re:sort facility ami hav~ the: draw th~ propose:r anticipat~J. Sh~ also did not fcd th~y coulLl obtain the: financing. Wilh Ihe opening of Ihe OTC and olher things happening in Ihe Cily she fell Ihere could be a market for such a facility. She: fe:1t anoth~r rdail C~nt~r would d~stroy the: ambiance: of the: community., He:r first prefac::nce: would be: to have: high-c:nd condominiums hut she: did not f~d the:r~ was a markd for that at the: prese:nt time: or that it would ge:nc:rate: the: n~~ re:vc:nuc:s for future: growth and to provide: sc:rvices to the: citiuns. The:refor~. she support~ the: rc::commc:ndation from staff. In ordc:r for Jodc:n Ente:rprises to obtain funding the:y n..ued 10 show Ihey had full supporl of Ihe Cily and conlrol of the land. MS (Horton/Rindone) to direct swff to renegotiate a semi-exclusive negotiating pgreement with Joelen Enterprise for the development of a golf resorl hotel on City o,vned property in the 4{lO block of Boniw Road with the tenn limited tu six months. Councilmembc:r Rindone: statc:.d h~ support~ the: project from its inception. He: did not f~1 thc:re was anyone single projc::ct that would havc:: more: of a be:ndit 10 th~ community than a tirst class hotd \lith banquet facililie:s. He questiont:.d if the: six month time frame was to short. Mr. Citron r~plie:d that if six months was all the: City wantc:d to commit to the projc:ct, whe:n they wc::rc:: willing to commit that thc:y would t'IUild a hote:!. they wOldt..! have to back oul. Six months was out of the: question. He: fdt Chula Vista was in n~~d of th~ prqjecl ant..! the)' could prove th4it. Th~y nc:~ded a 24 month period and we:re willing to s~t b~nchmarks so th~ property would nol he: lied up for two ye:ars and th~ City would not ~nd up with a hote:!. Mayor Horton state:d sh~ had a problem with 24 months. She: question~ why thc:y ne:t:.de:d 24 monlhs and what the monc:y would be: spe:nt am.! on what would it b~ spent on. Mr. Citron stated the:re: we:re: a lot of ~nvironmcntal conce:ms which W~r~ time: consuming and expc:nsive to address. The:y would have to do a sufficient plan for Ie:nd.;-rs as wdl as architectural and engin~ring f~s. The:y would have over 5250,000 into the: project hdor.;- rt:<tching the point to tak~ it to a lenc.J~r to finalize: the: commitme:nt and start ne:gotiations. Negotiating would take approximalely 6-9 months for a $35 million dollar projc:ct. A~[ENDMENT TO MOTION: (Rindooe/Horton) to ~dopt staff rewmmendation to renegotiate the semi- exclusi\'e negotiating agreement not to exc~d 24 months. ~:::;:-- - Mayor Horton stated some of the work should alrc:.ad): be: in place:. Mr. Citron r..ponded thai they had oil-shore money offered 10 Ihem hut they would ralher not take il. They wanled it to be an American proje.ct. He felt the country ne:ede:d to address the balancc: of payment probl~m and image in the: world. They were working within Chula Vista re:garding funding and hoped to keep it within the state:. Mayor Horton stateJ she was relui:tant to support the motion hut the City did not have another resort dc:\'dope:r knocking on the tJoor. There was a ne~J for lJu~tlity fal.;ilities in the: 1.;0111111unily anJ hoped something coulJ be al,.'l.;omplishe:!.J within the: ne:xt 12 months. Councilme:mbe:r Moot state:tJ he was not prepare:uto I.;ommit to 24 months. He: did fed the Citron's should be given every opportunity to pull th~ pn~jt':Ct tngc:iher. Staff did not recomme:nd a lime frame:, but if sw.fT could come back with a proposed semi-exc.::lusi,'~ negotiating agr~ment with benchmarks and had reasonable "out" clauses he: would b~ more comfortahle:. Mayor Horton stated she would agree and incorporate that into the motion, if agreeable to the Moaker of the Motion. Agreed to by the ~faker of the Motion. She questioned if24 monlhs could be removed from Ihe motion and allow staff and the Citron's work it oul. Councilmember Rindone stated he ,,'ould agr~ tu "up to 24 months". 11ft Minut~s March 7, 1995 Pag:~ 7 . Duan~ Pudgil. 378 San Miguel Driv~. Chula Vista. CA, r~pr~s~nling South Bay Towing, requ~st~d support for AIt~m3tiv~ # I. · John Clark, 720 Camino De La Riena, San Diego, CA, represenling J. C. Towing, request.,.] support of Altt:mativ~ #2. Council member Padilla stat~ previous council's had requested me.asurement of average response times, undertaking of vehicle abakment activities. etc. and he question~ if the agre.c:ment provided for specific measurements for performance, Kevin Hardy, Principal Management Assistant. re:plietJ those conditluns of the contract h~d been included and surf had measured them and fuund that the companie:-o had complied throughout the term of their contract. Councilmember Rindone questioned what fuIJ cost recovery was for the services per tow. Chief Emerson replied that there were two other programs that helped fund the towing program. The program was approximaldy $66,000 short of full cost recov<<y, It would be approximatdy $18-$20 sbort per low, Councilmembe:r Rindone questioned if the:re was a provision for coll~ting the money, i.e. frequency. Mr. Hanly replied that staff had not proc~ded th<tt tar with the referr<tl but was looking for direction from Council. Councilme:mher Rindone stakd if a referral fee was instituted il cou!d he paid on a monthly basis. H~ questioned what the penalty would be if they did not pay, 1\1r. Hardy replied that City pulicies we:re in pla!.:e for late fe~s and it would he subject to those policies. It was his understanding [hat there was a 10 day grace period and then a late: charge was imposed on th~ tow company. Councilmemher RinJon~ questioned if th~re was a penally such as not using the tow c..Jmpany until the f~s were paid. ~'fr. Emerson stated that coulJ be considc:reu if a rd"erral t"ee was instituted. Councilm~mber RinJone stated it was a complex issue:. He felt Council's first responsihility was to have effa:tive towing and gaoL! service. Council also wanted to have the hest rate:s possihle: and he would be reluctant to honor a rate increas~. The one tim~ Council may want tu con.sid~r raising a fee was when it applied only to the pt:rson requiring that special se:rvi!.:e. The City coulL! go out to bi<J and the lowest price bid would be the: rate, but then ev~ry company would have a ditferent rate and it could he confusing. Another possibility would he to establish a cap with a referral fee to help ahate the costs of City services. The owners had pointed out that their costs had gone up over time also and they were required to take credit cuds and, therefore, absorb the credit card charges. Dc:lay of the process would delay any implementation of a referral fee: which he did not feel was beneficial. A compromise would h~ to authorize raising the t~ from $55 to S70 with a referral fee, colle.cted imme.diately, of $ I 0 and put out an RFP to be effective in six months. The companies would not bid the rate as it would be a universal rate, but bid on what the referral f~ would be. Chief Emerson stated that setting up the process would be part of the RFP, i.e. how to collect, when to collect, what the fines were, etc, He felt staff could d<vdop an RFP within 60 to 90 days. Chief Emerson felt it could be completed hy 7/1/95. 1\15 (RindonelHorlon) increa.,e the pnlice initialed tnwing rates for Chula Vista from 555 to 570 per tow effectiye l\1arch 15, 1995; to continue with the fi\'e companies curnmtly operatin~ towing services in the City; 510 of the 570 d't'<<tiH ~Iarch 15th would he a rererral fee tn he paid to the Cit) no later than the 10th of the month followinJ,.: collection; and, sla'Tis to d~\"elop a competiti\'t~ hid to he suhmitted h}' 411/95 to maintain the same rates and make a ret:ommenclation to Council reJ.:arding the operation of the towing services with /1-~ Minutes March 7, 1995 Page 8 the respet.:ti...c n:fl'rral fees cffl'1..'tive 7/1/95. CUl1lr:u:l..; to he fur:1 periud (If fivc )'cars wilh threc ()nc~Yl'ar Ilptimt..;. Councilmem~r P..,dilla did not f~d Council should h~ setting rates at the: curre:nt time. Staff had aske:d for dirc:ction to de:fer the: f~~ until they had complc:t~ the: RFP process and ope:n it to compditivc: bidding, He: undc:rstood the: companies had provid-c:U a lot of good years of sc:rvice:, but there were other operators in the City that wantoo the opportunily to compete and he fdt that was the: bc:st course=: of action. He would support the staff rc:commc:ndation to defer it until it could be open~ up 10 the competitive bidding process. Councilmember Fox agreed with Councilmem,her Padilla. SUBSTITUTE ~IOTlON: (Fox/Padilla) to adopt the staff recommendation on page 13-1 to defer any increase in the police initiated towing and storage rate nt the current time nnd authori7.e stafT to conduct the proposed competiti"e bidding process including the referral fee. Mayor Horton request~ claritication of Councilmember Rindone's motion. Councilmember Rindone repli~ if the substitute motion was approved there would be no immediate referral f~ or full cost re.covc:ry. Dc:pending upon when the competitive hid wc:nt out would be when the institution of the change would be. He was concerned also that if the bidding process was for ~olh the referral t~t: and tow charge it would rt:sult in difft:rent rates to tht: user. He supported fr~ compdilian. ~ut felt an opportunity would ht: lost 10 institut~ a rd~rral fu imm~iatdy. Councilmember Padilla stated th~y had a tlat rat~ that was negotiate:u with the providc:r rt:gardle:ss of who they were for the conlract with the City. Ther~ was no conc~rn with anyon~ in Ihe field con.;~ming th~mselv~s with varying rat~s. It was not an eh::m~nt of discussion and was set hy tht: ttgre:e:mt:nt and was univt:rsttl. Mayor Horton agre~J with Councilmemher Rindone: as it would mak~ the users pay for thc:ir savice and save the: taxpaye:rs mon~)'. The last part of the: motion Was to go fOrv.'ard with the: compt:litivt: hidding proct:ss. The s~rvice rro\'id~d by the: five: companit:s and history with Ihe Ciry should he taken into consideration. Councilmember Moot queslioned why staff was not r~comme:nding that Ihe ratt:s not he raised at the: current time. Chit:f Emerson rt:plied that staff want~d to get into the competitive process without getting into referral fees at that time. Council member Moot srated if the rate was raised now it would he rigging the de.ck for a higher rale when it went out for competitive rate. Councilmember Rindone state:d the marion would institute an imme:diate referral fee and when staff came back to Council prior to 411/95 they would give Council a recommenJation on how they wanted to see it bid. Councilmemher Padilla stated he was not preparecl to support anything that did nol leave all questions up to the ",:ompelitive bidding process. VOTE ON SUBSTITUTE ~IOTlON: (Fox/Padilla) appruved 3-2 with Horton and Rindone opposed, 14. REPORT by >taff. UPDATE ON REGIONAL SEWER ISSUES - An oral report will be given John Lippitt, Director of Public Works, stated the City of San Diego informed them that the sewer billing would be in the mail. The City did get a request from the Spe.cial Act District 10 conlinue the operation of the \1-~ ATTACHMENT C (The same agreement will be used for all five selected tow operators) Parties and Recital Pages Agreement between City of Chula Vista and A to Z Metro Towing for Towing and Impound Services This agreement ("Towing Agreement"), dated August 20, 1996 for the purposes of providing towing and impound services, and effective as of the date specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Service Provider, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Service Provider"), and is made with reference to the following facts: Recitals Whereas, the Chula Vista Police Department requires professional towing and impound services to maintain the safety of the public right-of-way and to secure vehicles involved in criminal activity; and, Whereas, the Chula Vista Police Department issued a Request for Proposal to competitively select the firms to provide these activities; and, Whereas, Service Provider successfully responded to this Request for Proposal and has agreed to provide towing and impound services for the Chula Vista Police Department; and Whereas, Service Provider warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Service Provider to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; NOW, THEREFORE, BE IT RESOLVED that the City and Service Provider do hereby mutually agree as follows: 1. Service Provider's Duties A. General Duties Service Provider shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, /?~56 B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Service Provider shall also perform all of the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Additional Services In addition to performing the Defined Services herein set forth, City may require Service Provider to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Service Provider, Service Provider shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C). All compensation for Additional Services shall be paid monthly as billed. D. Standard of Care Service Provider, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. E. Insurance (1) Liability Insurance Service Provider shall obtain insurance of the types and in the amounts described below. (a) Commercial General Liability Insurance. Service Provider shall maintain occurrence version commercial general liability insurance or equivalent form with a limit of not less than $1,000,000 each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. Such insurance shall: i. Include the City its elected and appointed officials, officers and employees as insured with respect to those operations, uses, occupations, acts, and 2 J ]..>'7 activities for which this agreement is granted. The coverage shalt contain no special limitations on the scope of protection afforded to the "above-listed insured". Named Insured: City of Chula Vista ii. Be primary with respect to any insurance or self-insurance programs covering the City, its officials, officers and employees. (b) Business Automobile Liability Insurance. Service Provider shalt maintain business automobile liability insurance or equivalent form with a limit of not less than $1,000,000 each accident. Such insurance shall include coverage for owned, hired and non- owned automobiles. (c) Workers' Compensation Insurance Service Provider shall maintain workers' compensation insurance with statutory limits and employers' liability insurance with limits of not less than $1,000,000 each accident. (d) Other Insurance Requirements. Service Provider shalt: i. Prior to the effective date of this agreement, furnish the City with properly executed certificates of insurance which shall clearly evidence alt insurance required as shown above and provide that such insurance shall not be canceled, allowed to expire or be materially reduced in coverage except on 30 days' prior written notice to the City. Certificates of Insurance will be reviewed by the City's Risk Manager to ensure compliance with the insurance requirements stated herein. ii. Provide certified copies of endorsements and policies if requested by the City in lieu of or in addition to Certificates of Insurance. Endorsements shall be on the form shown as Exhibit C. (2) Replace certificates, policies and endorsements for any such insurance expiring prior to termination of this agreement. (3) Maintain such insurance from the time this agreement commences until its termination. (4) Place such insurance with insurers licensed to do business in California having A.M. Best Company ratings of no less than A:V. MAIL CERTIFICATES OF INSURANCE, ENDORSEMENTS AND NOTICES OF CANCELLATION, LIMIT REDUCTIONS, NON- RENEWALS, AND CHANGES IN COVERAGE TO: City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 A TTN: Risk Manager 3 I ?~r Reference: (Towing and Impound Agreemeut) I. Business License Service Provider agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Service Provider for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Service Provider throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Service Provider's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Service Provider submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Service Provider for all services rendered by Service Provider according to the terms and conditions set forth in Exhibit A, Paragraph II, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Service Provider for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Service Provider shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 @ to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. 4 ) 7''>' This shall terminate on October I, 2001, when the Parties have complied with all executory provisions hereof. 5. Financial Interests of Service Provider A. Service Provider is Designated as an FPPC Filer. If Service Provider is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Service Provider is deemed to be a "Service Provider" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate. Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider shall not make, or participate in making or in any way attempt to use Service Provider's position to influence a governmental decision in which Service Provider knows or has reason to know Service Provider has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider warrants and represents that Service Provider has diligently conducted a search and inventory of Service Provider's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Service Provider does not, to the best of Service Provider's knowledge, have an economic interest which would conflict with Service Provider's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider further warrants and represents that Service Provider will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Service Provider is designated as an FPPC Filer, Service Provider further warrants and represents that Service Provider will immediately advise the City Attorney of City if Service Provider learns of an economic interest of Service Provider's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 5 J 7.. ~ b F. Specific Warranties Against Economic Interests. Service Provider warrants and represents that neither Service Provider, nor Service Provider's immediate family members, nor Service Provider's employees or agents ("Service Provider Associates ") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Service Provider further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Service Provider or Service Provider Associates in connection with Service Provider's performance of this Agreement. Service Provider promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Service Provider agrees that Service Provider Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Service Provider may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Service Provider's responsibilities under tl1is Agreement, except with the written permission of City. 6. Hold Harmless Service Provider shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Service Provider, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its elected and appointed officers, or employees. Service Provider's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Service Provider at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Service Providers' indemnification of City shall not be limited by any prior or subsequent declaration by the Service Provider. 7. Termination of Agreement for Cause If, through any cause, Service Provider shall fail to fulfill in a timely and proper manner Service Provider's obligations under this Agreement, or if Service Provider shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Service Provider of such termination and specifying the effective date thereof at least five (5) days before the effective 6 /7.. "I date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Service Provider shall, at the option of the City, become the property of the City, and Service Provider shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Service Provider's breach. 8. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Service Provider of such termination and specifying the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Service Provider shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Service Provider hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 9. Assignability The services of Service Provider are personal to the City, and Service Provider shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City, which City may not unreasonably deny. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 10. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Service Provider in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 11. Independent Contractor City is interested only in the results obtained and Service Provider shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Service 7 J7"~;J. Provider's work products. Service Provider and any of the Service Provider's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. 12. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Service Provider shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 13. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 14. Statement of Costs In the event that Service Provider prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Service Provider shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 15. Miscellaneous A. Service Provider not authorized to Represent City Unless specifically authorized in writing by City, Service Provider shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with 8 17... t J return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. C. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. D. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. E. Governing Law/Venue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. F. Reductions in Scope of Work City may independently, or upon request from service provider" from time to time reduce this Agreement. Upon doing so, City and Service Provider agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. G. Errors and Omissions In the event that the City Administrator determines that the service Providers' negligence, errors, or omissions in the performance of work under this agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Service Provider shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 9 11-/. 1 Signature Page to Agreement between City of Chula Vista and A to Z Metro Towing for Towing and bnpound Services IN WITNESS WHEREOF, City and Service Provider have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,19_ City of Chula Vista by: Shirley Horton, Mayor Attest: Beverly Authelet, City Clerk Approved as to form: Ann Moore, Acting City Attorney Dated: A-Z Towing By: [name of person, title] By: [name of person, title] Exhibit List to Agreement ( X ) Exhibit A. ( X ) Exhibit B: A-Z Request for Proposal ( X ) Exhibit C: Policy Endorsement 10 I '/ ." tf' Exhibit A to Agreement between City of Chula Vista and A to Z Metro Towing 1. Effective Date of Agreement: October I, 1996 2. City-Related Entity: (x) City of Chula Vista, a municipal chartered corporation of the State of California 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: A to Z Metro Towing 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (x ) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 850-D Energy Way Chula Vista, CA 91911 Voice Phone (619) 573-1610 Fax Phone (619) 7. General Duties: A. Background. The City of Chula Vista, California (City), requires qualified towing companies to provide tow and impound services for the Police and Building and Housing Departments. The City of Chula Vista encompasses 35.4 square miles and has a population of approximately 150,000 residents. Growth will be a significant issue well into the next millennium. B, Individual Rights. The right of any individual involved in a non-criminal traffic collision to call the tow company of their own choosing shall not be infringed except in those cases where an unnecessary delay in removing the motor vehicle will, in the opinion of the investigating Peace Officer, diminish public safety. C. Courteous Cuslomer Relations. Tow companies shall courteously provide any information required by claimant to effect the release of the impounded vehicle including: confirming !hat a particular vehicle is in the tow company's possession; directions to the location of the vehicle, the method of securing its release, documentation required, applicable charges and fees required to be paid and terms of payment. Tow company employees shall discuss only matters immediately related to the work being completed and shall not make gratuitous comments !hat could harm the City. /7" t " D. Consumer Complaints. Tow companies shall display in a conspicuous manner, at every place of business from which Police initiated towing and impound services are rendered, City issued "Consumer Complaint" forms. Such forms shall be provided by the City, at City expense and shall be made readily available to tow companies. Such consumer complaints will be reviewed by the Chief of Police or his/her designee. E. Efficient Processing. Tow companies shall efficiently process claimants requests so that legitimate and appropriate requests for the release of stored or impounded vehicles are completed within one (1) hour of the time a claimant arrives at the consultants' location. F. Charges and Fees. Tow companies shall be authorized to, and responsible for, collecting applicable towing and impound charges and any fees required by the City prior to releasing a vehicle. G. Charge and Fee Schedule. Attachment A to this Request for Proposals provides a complete schedule of all charges and fees that the Successful Proposers will be authorized to collect from consumers for towing and impound services rendered on behalf of the City. This rate schedule shall remain in place unless and until amended by the City Council, successful proposers shall not request a change in the rate schedule for one year after agreements have been executed with the Successful Proposers. After this initial one-year period, the sucessful proposers may request that the rate schedule be amended by the City Council. H. Towing and Impound Service Charges and Fees Posted Conspicuously. The schedule of City Council approved Towing and Impound Service Charges and Fees presented in Attachment A shall be posted in a conspicuous place at all locations where the Tow Company does business. This posting shall also include all instructions necessary for consumers to effect City observed Holiday's and an after-hours vehicle release. I. Billings. All invoices for towing and impounds shall be clearly itemized by charge or fee type. Disputes associated with Police initiated towing and impound services that cannot be satisfactorily resolved by the parties involved shall be adjudicated by the City. J. Nwnber of Tow Companies. There shall be a maximum of five tow companies eligible to provide towing and storage services to the City. K. Repair and Alteration of Impounded Vehicles. Except as provided for in sub-section 4.5.5, tow companies shall not make any repairs or alterations of vehicles in their possession without the express written authorization of the vehicle's registered owner, the registered owner's insurance carrier or a verifiable agent of the owner or insurance carrier. L. Damage to Vehicle While in Tow Companies' Possession. Tow companies shall be responsible for any damage occurring to the vehicle while in their possession. AIl damage not recorded on the damage assessment will be considered the tow company's responsibility. M. Loss of Property While in Tow Companies' Possession. Tow companies shall be responsible for all property belonging to that vehicle as identified by the content inventory. N. Docwnents Required Prior to Release. Tow companies shall not release any vehicle impounded as the result of a Police initiated tow unless the claimant presents a valid, City-issued Police Release. Any and all responsibilities for the release of a vehicle without a Police Release shall devolve fully to the tow company. O. Police Department Errors and Omissions. When any vehicle has been ordered towed by the City and it is established that the tow was in error through a mistake of fact, tow companies shall release the vehicle to its registered owner or another legitimate claimant at no cost. If an error by the City results in a vehicle being stored longer than it can reasonably be determined that it should have been, the tow companies shall release the vehicle to the claimant, and bill the claimant only those storage charges that would have accrued if no error had )7--J- 7 occurred. In the case of erroneous towing, tow companies shall charge the City 50% of the Basic Tow rate. In the case of erroneous extended storage, tow companies shall charge the City $2.00 per day for storage charges beyond the claimant's responsibility. However, if the City can reasonably establish that the circumstances resulting in the error were beyond the control of the City, neither the City or claimant shall be liable for such charges. P. Call List. The City will select the Successful Proposer to provide required towing and impound service on the basis of a call list. The call list will be maintained by the City. The City shall contact, by telephone, the Successful Proposer occupying the first position on the call list whenever a towing service is required by the City. (1) Each eligible tow company will occupy the first position on a "call list" for prescribed dates each month as shall be determined by the City and the Successful Proposers. At midnight of prescribed "first -up" transition dates, the company in the first position on the call list will rotate downward to the last position, the firm in the second position will rotate upward to the first position and each of the remaining companies will rotate up one position. (2) If, except as a result of natural disaster or other causes beyond the reasonable control of the tow company, the tow company occupying the first position on the call list cannot perform services required by the City, the City will contact companies, in descending order of the call list, until a company that can perform the towing service is identified. (3) Except in extraordinary circumstances, an interim call list rotation will be effected if the tow company occupying the first position on the call list fails to respond to three (3) consecutive requests for service. Interim call list rotations will remain in effect until the offending tow company's turn in the rotation has been completed when, at that time, the call list shall revert back to its regular schedule. In order to preserve the integrity of the call list rotation schedule, a tow company rotating into the first position on the call list as the result of an interim rotation shall, in addition to retaining the first position for the remainder of the offending company's turn, maintain the first position for its regularly scheduled turn. Q. Municipal Towing Services Review Board. The Municipal Tow Services Review Board (MTSRB) will supervise Police initiated towing and impound services. The purpose of the MTSRB will be to investigate and adjudicate Police initiated towing and impound service related disputes and consumer complaints; to assess the quality of service being provided by tow companies as measured by compliance with the terms and conditions of this agreement; to impose progressive disciplinary measures on tow companies failing to comply with agreed upon policies and procedures; to implement changes to existing policy and procedures; to make recommendations to the City Manager and Council as to the amendment of the City's agreements with the Successful Proposers; and. to undertake other activities that help ensure the City obtains the highest quality municipal towing services possible. (I) The MTSRB shall be composed of two tow companies representatives serving staggered two- year terms and two sworn City peace officers assigned to the Traffic Uuit of the Patrol Division. The MTSRB shall be chaired by the Captain of the Patrol Division or his/her designee. (2) The MTSRB shall meet on the final Wednesday of February, June, August and November, at 1:30 P.M., at the Chula Vista Police Department. (3) Determinations of the MTSRB shall be appealable. The venue of appeal for all MTSRB determinations shall be the Chief of Police whose determination, made in good faith, shall be final. R. Audit and Inspection of Records. Tow companies shall, during normal business hours, make all records, equipment and storage facilities available for periodic, unscheduled inspection by the City. S. Ethics. Tow companies shall conduct all business in an ethical manner. T. Responsibility for Acts of Employees. Tow companies shall be responsible for all acts of their 17.,t y employees while those employees are performing selVices for the City. U. Compliance with City Business License and GeneraI Operation Regulations. Tow companies shall conduct all business activities in compliance with Title 5, and other applicable Cbapters, of the Chula Vista Municipal Code. V. Compliance with City Building and Construction Regulations. Tow companies shall maintain all buildings and properties used in the provision of services to the City in compliance with Title 15, and other applicable Cbapters, of the Chula Vista Municipal Code. W. Compliance with City Zouing Regulations. Tow companies sball conduct all operations relative to the provision of services to the City in compliance with Title 19, and other applicable chapters, ofthe Chula Vista Municipal Code. X. Compliance with California Vebicle Code. Tow companies shall comply with all applicable sections of the California Vehicle Code (CVC). 8. Scope of Work and Schedule: A. Response Time. Tow companies will respond to requests for towing selVices within an average of twenty (20) minutes of being notified by the Police Department. B. Removing Motor Vehicles. Tow companies shall, at the request of the City, move, tow away and impound motor vehicles which are, under the authority California Vehicle Code or Chula Vista Municipal Code, declared by the City to be: illegally parked, abandoned, have been involved in a traffic collision, or constitute an obstruction of traffic due to mechanical failure or operator negligence or arrest. Such services are required on a twenty-four-hour-a-day, seven-days-per-week basis. C. Removal of Inoperable City Vehicles. The City may, from time-to-time, require the removal of inoperable City vehicles from the public right-of-way and tow such vehicles to the appropriate City facility. Such services will be provided by the tow company first-up on the Call List at rales that shall be set at a future time. D. Abandoned Vehicle Abatement. The company occupying the first position on the Call List shall, at the request of the City, remove and impound up to ten (10) vehicles from private property or from the public right- of-way which are declared abandoned by the City. Such services will be provided from 7:00 a.m. until 5:00 p.m., Monday through Friday at no cost to the City. The City will make a reasonable attempt to schedule the removal of abandoned vehicles. E. On-Scene Duties. Upon arriving on-scene, tow company employees sball report to the Peace Officer in charge and discbarge their duties in accordance with the following conditions: (I) Tow companies shall make every reasonable effort to comply with direction provided by the officer-in-charge. (2) Tow companies sball be responsible for making an accurate damage assessment for each vehicle towed and recording said damage assessment on City approved forms and signed by the consultant's employee. (3) Tow companies shall be responsible for making an accurate conlent inventory for each vehicle towed and recording said vehicle inventory on City approved forms and signed by the consultant's employee. (4) Tow companies sball be responsible for removing and appropriately disposing of collision- 17"/,'/ related debris from the public right-of-way to ensure public safety. (5) Tow companies may make any emergency alterations reasonably required to safely move and/or tow vehicles. F. Vehicle Impounds. Subsequent to removing a vehicle from the public right-of-way or private property, tow companies shall securely impound that vehicle. G. Negligent Vehicle Impound Program (NVIP) and Referral Fees. Tow companies will be authorized to, and responsible for, the collection and remittance to the City of NVIP and Referral fees. The NVIP fee is $55.00, the referral fees shall be $18.00 for each vehicle towed except as set forth below. Tow companies shall charge and remit collected fees to the City through a mutually agreed upon process and shall keep all required documentation as required in association with the collection of these fees. (I) It may be presumed that NVIP Charges will be collected on vehicles impounded under the following sections of the CVC: 22651(a) - (t), 22651(h) - (s), 22651.5.22652,22653 (a) - (c), 22655(a), 22669; and, Chapter 10.80.010 of the Chula Vista Municipal Code. The City may, at is sole discretion, amend NVIP violation list from time to time as may be required by state law or City policy. (2) Tows Excepted from Referral Fee. Referral Fees shall not be collected in the following cases: (a) the towing of vehicles, or parts thereof, declared abandoned by the City; (b) the towing vehicles that are City-owned; (c) when the City requests a tow truck and, as a result of that request, a vehicle, or part thereof, is not towed; or, (d) when the collection of a referral fee would be in contravention of any local. state or federal law. H. Release of Impounded Vehicles. Tow companies shall provide vehicle release services on a twenty- four-hours-a-<lay, seven-<lays-per-week basis. After hours releases charges shall applicable after 5 pm Monday through Friday, Saturday, Sunday and City observed holidays. I. Access to Stored Vehicles. During regular business hours, tow companies shall, except as restrained in Sub-Section 4.23 below, make vehicles stored at the request of the City available to that vehicles registered owner, a person who can be verified to be the registered owner's agent, insurance agents, insurance adjusters, or, representatives of automotive repair businesses for the purpose of estimating or appraising damages. J. Evidentiary Vehicle Security. Vehicles impounded by the City for investigative purposes shall be held in maximally secured, non-public areas of the consultant's property until the vehicle is released by order of the City. Any property or other contents of such vehicles shall not be removed by any person other than a Peace Officer or Evidence Technician employed by the City. Property removed from such vehicles shall be recorded as removed on the content inventory and the content inventory dated and signed by a representative of the tow company and the Peace Officer or Evidence Technician removing such property. K. Records of Services. Tow companies shall keep and maintain records of each vehicle towed at the request of the Police Department for at least three years. At a minimum, these records shall include: date of tow; make and model of vehicle; license plate number and vehicle identification number (presuming both are readily available); the time the tow company was dispatched to the location requested by the Police Department, the time 17~70 tow company arrived on-scene; and, the fees and charges levied against the vehicle and disposition thereof. The City shall have the right to inspect and audit, without prior notification, tow companies' records at reasonable times during the normal working hours to determine compliance with these record-keeping requirements. L. Annual Report. On an annual basis, tow companies shall submit a Tow Company Annual Financial Report to the City. These reports shall be retained. in confidentiality, by the City for no less than two years. The content of such annual reports shall be determined at a later date. M. Date for Commencement of Consultant Services: (x) Same as Effective Date of Agreement N. Dates or Time Limits for Delivery of Deliverables: Not Applicable O. Date for completion of all Consultant services: Not Applicable 9. Insurance Requirements: (x) Statutory Worker's Compensation Insurance (x) Employer's Liability Insurance coverage: $1,000,000. (x) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions Insurance: None Required (included in Commercial General Liability coverage) . ( ) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: None n. Compensation: None 12. Materials Reimbursement Arrangement 13. Contract Administrators: City: Chief of Police Consultant: 14. Liquidated Damages Rate: None IS. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ( ) Not Applicable. Not an FPPC Filer. (xx) FPPC Filer () Category No. 1. Investments and sources of income. () Category No.2. Interests in real property. () Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. 17.. 71 () Category No.4. Investments in business entities and sources of income which engage in land development. construction or the acquisition or sale of real property. () Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. () Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: ------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------ ------------------------------------------------------------ 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: None 18. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (xx) Monthly B. Day of the Period for submission of Consultant's Billing: (xx) First of the Month C. City's Account Number: 100-1030-5202 19. Security for Performance: None 17"' 1;1- RESOLUTION NO. ) B'I , f RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING PROPOSALS AND AWARDING CONTRACTS FOR POLICE INITIATED TOWING AND STORAGE SERVICES TO ANTHONY'S TOWING, SOUTH BAY TOWING, PAXTON'S TOWING, AZ METRO TOWING AND J. C. TOWING WHEREAS, on March 7, 1995, Council authorized Department staff to design a competitive process to providers of Police Initiated Towing and Impound Services; Police select and WHEREAS, proposals were accepted on June 30, 1995, with twelve providers responding; and WHEREAS, the process used was designed to improve the tow services provided to consumers and the City while enhancing General Fund revenues through the implementation of a referral fee paid by tow companies under contract with the City; and WHEREAS, proposals were evaluated using - a three-tier rating system to ensure that responses were in compliance with the specific requirements outlined in the request for proposal; and WHEREAS, staff recommends no more than five tow companies be approved by Council based on their capabilities as demonstrated in the Qualifying Phase and their ability to enhance General Fund revenues via their proposed Referral Fee. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept proposals and award contracts for police initiated towing and storage with the following companies: Anthony's Towing, on file in the Clerk's office as Document No. Southbay Towing, on file in the Clerk's office as Document No. Paxton's Towing, on file in the Clerk's office as Document No. Metro Towing, on file in the Clerk's office as Document No. J. C. Towing, on file in the Clerk's office as Document No. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said Agreements for and on behalf of the City of Chula vista. Presented by Approved as to form by Richard P. Emerson, Chief of Police C:\rs\towing ~ (k, If ItLQ#-,<.: Ann Y. Moore, Acting city Attorney 17 fI-1 RESOLUTION NO. J~~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE POLICE INITIATED TOWING SERVICE RATE SCHEDULE AND IMPLEMENTING A REFERRAL FEE WHEREAS, as a result of the renewal and solicitation for bids, the tow operators made formal request to increase the Council approved rate schedule; and WHEREAS, in response to this request, staff initiated a rate and contract compliance analysis; and WHEREAS, staff's initial analysis included a survey similar to that conducted in 1990 and a review of the tow companies performance over the term of the existing agreements; and WHEREAS, this analysis concluded that the current Chula vista Tow Rate Schedule was lower than the majority of agencies survey; and WHEREAS, the rationale for the operator's request for a rate increase was based primarily on two factors: A. That the city's rate schedule was out of line with other jurisdictions since, as mentioned above, the most recent rate increase occurred in August 1990. B. That the City has required an increasing level of administrative work on their part to comply with state law and city policies, most notably the implementation of the Negligent Vehicle Impound Fee. WHEREAS, staff is recommending a referral fee be added to the tow rate to be paid to the City to cover the City's cost of administering the towing program. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby amend the Police Initiated Towing Rate Schedule to increase the rates as set forth in Attachment 1, attached hereto and incorporated herein by reference, and to incorporate the referral fee. BE IT FURTHER RESOLVED that said rates shall be effective upon adoption of this resolution. J713-1 Presented by Approved as to form by ~ ~ }VI A~"" Q Ann Y. Mo re, Actlng Clty Attorney Richard P. Emerson, Chief of Police C:\rs\towing 178 ~ A . R. e,\J'( oS c. D g-I,,-q~ ATTACHMENT 1 POLICE INITIATED TOWING RATES IN SAN DIEGO COUNTY San Diego EICajon National Escoodido Survey Cbula Vista Cbula Vista Service Cit)' Average Current Proposed Basic Tow $72. 00 $55.00 $75.00 $75.00 $69.25 $55.00 $70.00 Mileage $2.50 $2.50 $2.50 $0.00 $1.88 $2.50 $2.50 Labor $40.00 $40.00 $00.00 $40.00 $30.00 $24.00 $30.00 Storage Hour $4.00 $2.00 $2.00 $2.00 $2.50 $1.50 $2.50 Storage $15.00 $12.00 $12.00 $15.00 $13.50 $12.00 $15.00 Max/Day PM Release $28.00 no servIce $28.00 $35.00 $30.33 $25.00 $30.00 Heavy Tow $125.00 no servIce $125.00 $120.00 $123.33 $120.00 $125.00 A vera~e Cost $98.00 $79.50 $87.00 $100.00 $90.41 $71.00 $93.00 Referral Fee $17-35 no no no nla no $18.00 Ine! uded in Tow Rate Note: Due to variance in the application of ancillary charges, it is difficult to accurately compare one jurisdiction's rate schedule with another. Such ancillary charges interact with the basic rate to create the tow operator's revenue stream. For example: in Chula Vista, mileage charges accrue only after the first mile; in San Diego and National City, mileage charges accrue after five miles; El Cajon charges for all mileage; and, in Escondido there is no charge for mileage. Additionally, National City does not have a labor rate which skews the average labor rate reported. /7 G-3 ---------------------------- AUG-19-1996 12:05 DURU INC. SOUTH 8A~TOWINC,'Nc. 619 "K"' STREET . CHl..LA VISTA, CA 91911 . TOWING: 6194220379 Mayor Horton and Members of the City Council City of Chula Vista 216 Fourth Avenue Chu\a Vista, CA. 91910 August 18, 1996 Re . Accepting proposals and awarding contracts for Police Initiated towing and storage services. City Council Agenda of August 20, 1996 Item #17 A, B Honorable Mayor Horton and Members of the Council. We request your support of staff recommendation on items #17 A,B. South Bay Towing has operated as a Police Authorized towing company for the City of ChuJa Vista since 1966. We have been working with Staff for almost two years in implementing a Contract that provides for . I. Full Cost Recovery to the City to operate their Towing program. 2 A Competitive Bid-Process 3 A Competitive Towing Rate to the public. 4 A back-up system that allows the City the ability to call upon over 40 Tow trucks. 5. 5 locally owned and operated Towing Companies committed to the Police Department. I appreciate this opportunity to communicate my comments to you. I will appear at the Council Meeting on August 20th, at which time I will again urge you to support city staffs recommendation. Thank You pe Duane W Pudgil Owner P.02 ~)7 --------------------- TOTAL P.02 AUG-19-1996 12:05 DURU INC. SOUTH BA~TOWINC,'Nc. 61 q "K" STREET . CHULA VISTA, CA 91911 . TOWING. 619.422 0379 Mayor Horton and Members of the City Council City of Chula Vista 276 Founh Avenue Chula Vista, CA. 91910 August ]8, 1996 Re : Accepting proposals and awarding contracts for Police Initiated towing and storage services. City Council Agenda of August 20, ]996ltem #17 A, B. Honorable Mayor Horton and Members of the Council . We request your support of staff recommendation on Items #17 A,B. South Bay Towing has operated as a Police Authorized towing company for the City ofChula Vista since 1966. We have been working with Staff for almost two years in implementing a Contract that provides for . 1. Full Cost Recovery to the City to operate their Towing program. 2. A Competitive Bid-Process 3. A Competitive Towing Rate to the public. 4. A back-up system that allows the City the ability to call upon over 40 Tow trucks. 5. 5 locally owned and operated Towing Companies committed to the Police Department. I appreciate this opportunity to communicate my comments to you. I will appear at the Council Meeting on August 20th, at which time I WIll again urge you to support city staffs recommendation. Thank You. Very Respectfully, ~We Duane W. Pudgil Owner P.02 -ft/? TOTAL P.02 ------------ ----- COUNCIL AGENDA STATEMENT Item 1f3. Meeting Date 8/20/96 ITEM TITLE: Report Regarding Proposed Multiple Family Residential Development Project at the MTDB "H" Street Trolley Station -..-"7 I SUBMITTED BY: Director of Planning 41-' REVIEWED BY: City ManagerU~ 110 (4/5ths Vote: Yes_No X ) Ie" On July 1, 1996, the Planning Department received a request from Mr. Edward F. Wagner for a letter of support from the City of Chula Vista for a proposed five story, IDS-unit multiple family residential development project planned to be constructed above the existing parking lot at the Metropolitan Transit Development Board's (MTDB) "H" Street Trolley Station. The requested letter of support is intended to be included with Mr. Wagner's formal project proposal to MTDB. RECOMMENDATION: That the City Council authorize the Director of Planning to forward a letter to Mr. Wagner and MTDB providing comments regarding the development proposal. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable. DISCUSSION: Background On March 28, 1996, staff from the Planning and Community Development Departments met with Mr. Edward F. Wagner to discuss a preliminary proposal to construct a five story, multiple family residential and office mixed-use project that would be constructed over the MTDB "H" Street Trolley Station parking lot (with the possibility of extending over the trolley station and tracks). The request by Mr. Wagner at that time included whether the City would support the provision of affordable housing funding for the project. The Community Development Department staff indicated to Mr. Wagner that the limited funds that were available were being targeted for other areas of the City and for larger family-oriented units. On July 1, 1996, Mr. Wagner submitted a letter to the City requesting a letter of support from the City of Chula Vista for a proposed five story, IDS-unit multiple family residential development project to be constructed above the existing parking lot at the MTDB 'H' Street Trolley Station. In Mr. Wagner's letter he again described the project proposal, and indicated that he is now proposing that the project be funded privately, with the use of Federal tax credits, 18-1 Page 2, Item _ Meeting Date 8120/96 and that local funding would not be required or requested. He further indicated that the project will require a written indication of support from the City of Chula Vista, to be included with a formal proposal to MTDB (See Attachment A). The "H" Street Trolley Station site is designated in the City's General Plan as "Commercial- Professional and Administrative," and the property is zoned both "CV-P" (Visitor Commercial) and "R-3" (multiple-family residential). Thus, the zoning is not fully consistent with the General Plan. However, the property could be rezoned to "C-O" (Administrative and Professional Office Zone) which would be consistent with the General Plan designation, and would allow multiple family residential as a conditional use. Therefore, the proposal could be considered by the City without an amendment to the General Plan, but would require rezoning, a conditional use permit, and design review. Analvsis Through acceptance of the Land Use Distribution Element of the SANDAG Regional Growth Management Strategy, and with the adoption of the Otay Ranch and its village core concepts, the City of Chula Vista has demonstrated support of the concept of transit-oriented development. This concept involves intensification of development on and around trolley stations in order to increase ridership and make transit a viable alternative to the automobile. In addition, the Central Chula Vista Area Plan, contained in the City's General Plan, also supports the concept of mixed-use development in the area west of Broadway and surrounding the transit stations at "E" and "H" Streets. The proposed residential development on the MTDB "H" Street Trolley Station proposed by Mr. Wagner is generally consistent with the policies mentioned above. However, staff would like to highlight that any development proposal resulting in intensification on or around the "H" Street Transit Station needs to address a number of issues including the following: I) Proposed development needs to consider land use policies contained in the Central Chula Vista Area Plan (Chapter 10 of the General Plan), which address the interrelationship of land uses in this immediate area, as well as effects to existing infrastructure (eg, schools, sewers, circulation and parks). Consideration should to be given to redevelopment efforts in the Bayfront area to the west, including the Rohr site, which may ultimately affect the overall land use and circulation patterns along the "H" Street corridor. 2) Design compatibility with adjoining land uses needs to be considered, including building height, massing, articulation, open space, circulation and parking. Specifically, the relationship of parking for this facility with overall parking needs for the Trolley Station, and building height and open space requirements in the Zoning Ordinance, need to be carefully addressed. 18- ~ Page 3, Item _ Meeting Date 8/20/96 3) The proposed development project does not meet the currently identified priorities for use of low and moderate income housing funds, and the City does not have programs in place that would allow for indirect subsidies, such as development fee waivers. In conclusion, staff recommends that Council authorize the Director of Planning to respond to Mr. Wagner with the attached draft letter containing comments that need to be considered with the development proposal (See Attachment B). FISCAL IMPACT: The project would be anticipated to process through the City's typical development review. No fiscal impact is anticipated with the current request. Attachments: A. Letter submitted by Edward F. Wagner, dated July 1, 1996. / B. Draft letter to Edward F. Wagner from the Director of Planning. " C. Locator / Zoning Map. " (M:\homc\planning\wagner .AII) )8-3 Edward F. Wagner 1836 N. W. Couch Street Portland, OR 97209 July 1, 1996 Mr. Robert Leiter Director of Planning City of Chula Vista Planning Department 276 Fourth Avenue Chula Vista, CA 91910 Dear Bob: This letter is submitted as verification of our intent to proceed with the development of the transit station project on the MTDB Park and Ride Site at "H" Street and 1-5 in Chula Vista, and in response to our telephone conversation last Thursday, June 27, 1996. MTDB has reviewed our development concept and invited us to submit a proposal for formal consideration and approval. The project remains identical to the concepts reviewed at our meet- ing with you and other representatives of the City of Chula Vista Friday, May 10, 1996 in your offices at City Hall. It consists of a four story one hundred and five unit housing complex constructed over the existing park-and-ride lot. The project is envisioned to accommodate an adult transit-based tenancy with one-bedroom and two-bedroom units and would include sixty four parking spaces on the adjacent deck over the existing parking. MT~B has indicated that additional required parking could be accommodated at the existing ground level park-and-ride lot in an area specially designated for residents. The existing ground level site plan will remain intact with the exception of pier placement for the new structure in a non-conflicting configuration. All existing ground level vehicular traffic and circulation patterns and facilities will remain intact. A copy of the concept drawings is attached hereto. These drawings are conceptual only and should not be considered to be the final architectural plans. Detailed planning and architectural designs will commence only upon mutual agreement of the concept by all parties. ATTACHMENT A 18 -J{- Page 2 Mr. Robert Leiter July 1, 1996 It is envisioned the project will be funded privately with the use of Federal Tax Credits. Local funding will not be required or requested. The project will, however, require the approval and support of the City of Chula Vista. A written indication of that support from your office should be included with our formal proposal to MTDB. A high level of cooperation will be essential to expedite the necessary entitlements for an accelerated processing and develop- ment schedule. We are prepared to proceed immediately and await your response. Ed..,d F w.:l tt/~ 1836 N. W. Couch Portland, OR 97209 Tel: (503) 221-1837 FAX: (503) 228-1016 cc: Jack Limber Bill Lieberman David Gustafson Steve Gri ffi n Bi 11 Gustafson 18-.5 :snN3M;' NMY'1aOCW\ -:I- r------------------ --I ~ , I . I .. '" II " c ,> ., I ; .2:' '" L~ '):,l c ...~" ", "0 's. ... ~ " m .. c 0 '" '" .....:! it' Q .. u & ~ ;,t'" D ~$ ~~ .. 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'.. -- .. . ." - ----.-2'--,>,>' ,- --.. ,_ ._ ''''. ._.. ...... ___....... : ~j- : . .... ---(:~8.;~r~.~.--t~t~10'~" - '.. /.~~;L//;j :: .:ii.iW(!~~I~A~r~~~ ~...!!Z~~. ::;~'.u' ..0 . ......, .. . -.---::--.~~,-'-:._-.-.. ....17-;7. 777/'-7.-/n .-,.. J ~~'iji~:i~f/7//777 /////77//Y;:~ "-- .~- ........... I 18 -10 j :J-(1 ~ ~ f.t.. ~ ~~~~ -:;...~~- CllY OF CHUlA VISTA PLANNING DEPARTMENT August 21, 1996 Edward F. Wagner 1836 N. W. Couch Street Portland, OR 97209 Subject: Development Proposal for the H Street MTDB Trolley Station Site Dear Mr. Wagner: In response to your letter, dated July I, 1996, I have prepared this response which I hope explains clearly what the City of Chula Vista's position is regarding your development proposal for the H Street MTDB Trolley Station site. The proposal includes the development of 105 multiple family residential units to be constructed over the existing park-and-ride trolley station lot and would be five stories in height. I would ftrst like to indicate that the City recognizes and supports the concept of transit-oriented development, which involves intensification of development on and around transit station sites in order to increase ridership and make public transit a viable alternative to the automobile. As an example, the City recently adopted the Otay Ranch General Development Plan, which includes policies that provide for a mixed-use village core with increased residential densities and village-serving commercial uses surrounding future transit stations. However, any development proposal resulting in intensification on or around the "H" Street Transit Station site needs to address a number of issues including the following: 1) Chapter 10 of the Chula Vista General Plan (Central Chula Vista Area Plan) contains policies that recommend that the area between, and surrounding, both the "H" Street and "E" Street Transit Stations be considered for redevelopment. Any redevelopment of this area, or in-fill development, should include consideration of the effects of an increase of residential units on existing infrastructure (e.g. schools, sewers and circulation, parks etc.). Any design or land use proposal for this area should also encourage pedestrian- friendly circulation patterns. Potential circulation modifications that could affect the status of Woodlawn Avenue are recommended for consideration in this chapter of the General Plan. 2) Redevelopment of the transit station site and area should take into consideration redevelopment plans for the Bayfront, including the Rohr Industries site, immediately west of Interstate 5 (accessible from "H" Street). The Bayfront area has significant 18-1/ ATTACHMENT B ;- ":'H AV~/CHU~' _ 't"ORNIA 9'Q, Edward F. Wagner 2 August 21, 1996 development and redevelopment potential which could influence development on the "E" Street, "F" Street and "H" Street corridors. Plans for this entire area are under consideration but have not been completed. 3) Design compatibility issues will also need to be addressed with the pursuit of any development proposal at this site. Building height, massing, articulation, open space, circulation and adequacy of parking will be considerations addressed through the City's Design Review process. Fire access will also need to be evaluated. The preliminary project proposal identifies a five story structure which would exceed current zoning height limitations of three and one-half stories (or 45 ft.) and would appear to have difficulty meeting the City's common open space requirements for multiple family developments. 4) Previous discussions with you regarding this proposal have included possible City financial participation, in order to make the project affordable to low and moderate income residents. We wish to emphasize that at this time the City does not see this project as meeting currently identified priorities for use of low and moderate income housing funds, and the City does not have programs in place that would allow for indirect subsidies, such as development fee waivers. In conclusion, the City of Chula Vista is interested in any project which will result in the implementation of its General Plan policies, provided that it is well conceived, fiscally sound, and is in the best interests of its citizens and those of the region. While the City is generally supportive of the project concept, the issues stated above need to be considered with any project submittal. Please feel free to contact me at (619) 691-5254 if you have any questions or wish to discuss the project further. Sincerely, Robert A. Leiter Director of Planning cc: Chris Salamone, Director of Community Development Duane Bazzel, Principal Planner Steve Griffm, Principal Planner Bill Gustafson, Transit Coordinator (#ll,\WAGNERI.LTR) 18-/~ CITY OF CHI" ^ VISTA - -z- ...-\ t'f\ ?J c.I' ...-\ Y ...-\ t'f\ <.J' BISON MOBILE HOME PARK MHP MUELLER ELEMENTARY SCHOOL VlSTAN APT' CTD CHULA VISTA PLANNING DEPARTMENT LOCATOR PROJECT N A PROJECT DfSCRlI'nON, C9 APPlICANT, .. "H" Street Trolley Station PROJECT N,A. Housing Proposal ADDRESS, - J8-/3 SCALE, FILE NUMBE~ ATTACHMENT C NORTH No Scale NA ITEM TITLE: Item )..1) ~ Meeting Date 8/20/96 Resolution / 8't'-2~king a position to oppose AB 956, which is not addressed in the Legislative Program and therefore requires direct Council action. COUNCIL AGENDA STATEMENT SUBMITTED BY: Legislative Committee (4/5ths Vote: Yes_ NoX) The City's 1995-96 Legislative Program was last amended by Council on December 12, 1995. Although this program was intended to provide comprehensive direction to the Legislative Committee on City's legislative priorities, there are certain issues which are reserved for direct action by the Council. Attached is an analysis of a bill which is not addressed in the Legislative Program. The Legislative Committee recommends that Council take a position to oppose this bill. RECOMMENDATION: That Council approve the resolution opposing AB 956. BOARD/COMMISSION RECOMMENDATIONS: Legislative Committee recommends approval of the resolution. DISCUSSION The bill proposed for Council action is follows: 1. AB 956 (Alpert) TIDELANDS: SAN DIEGO: PUBLIC SAFETY INSTITUTION Would declare an urgent need for the on-going use of the tidelands and submerged lands at the Naval Training Center (Camp Nimitz) for purposes of public safety training. This would pre-empt any attempts by the San Diego Unified Port District or other agencies to find alternative uses for the property being vacated by the Navy, including the expansion of Lindbergh Field. Defeat of this bill does not negate the possibility of a public safety institute, but preserves several options for site use and would prevent these options from being restricted or determined at a State level. Additionally, the Federal government, under the auspices of the Federal Aviation Administration and, ultimately, the Secretary of the Navy, will still playa role in the re-use of the site. Fiscal Impact: No direct fiscal impact. However, actions which preclude the expansion of Lindbergh Field may impact the long-term viability of that facility and lead to the reconsideration of a regional or bi-national airport at Otay Mesa. Legislative Committee Recommendation: OPPOSE Attachments: Analysis and bill text, AS 956 .2tJJ.. / c:\...\ccm\ab956.113 CITY OF CHULA VISTA LEGISLATIVE ANALYSIS August 14, 1996 I BILL I AUTHOR I TITLE I INTRODUCED I AMENDED AB 956 Alpert Tidelands: San Diego: 2/23/96 7111196 public safety institute CITY POSITION LEAGUE POSITION RELATED BILLS ADDRESSED BY LEG. PROGRAM PENDING NONE NONE No; Council Action Required STATUS: Senate Second Reading BACKGROUND: On 7/16/96, the San Diego City Council v01ed 5-4 to reject a San Diego Unified Port District proposal to acquire portions of the land currently occupied by the Naval Training Center. The Port District intended to utilize the land in order to expand Lindbergh Field. Chula Vista Port Commissioner David Malcolm reported the actions of the San Diego City Council and noted the likelihood of a protracted legal battle over the acquisition of the land in question. AB 956 would: Declare an urgent need for the on-going use of the tidelands and submerged lands at the Naval Training Center for purposes of public safety training. The bill would make legislative findings that the public trust is best served by the continued use of this property for that purpose. The effect of this legislation would be to pre-empt any other use of the land being vacated by the Navy, and would prevent the Port District or any other agency from pursuing other options for the property. Members of the San Diego City Council are contacting public safety departments through out the region, including the Chula Vista Fire Chief, requesting their support of this legislation. Defeat of this bill would not negate the possibility of a public safety institute, but, rather, would keep the options for site use from being restricted or determined at a State level. Additionally, the Federal government, under the auspices of the Federal Aviation Administration and, ultimately, the Secretary of the Navy, will still playa role in the re-use of the site. The San Diego Unified Port District staff will ask their Commission to take a position of opposition to this bill on 8/20/96. The Port District staff points out that the Public Trust Doctrine, which governs tidelands use, requires that these lands be used to promote commerce, navigation, fisheries or recreation. They also note that many court cases have held that a legislative action cannot eliminate the public trust doctrine, which is part of both the State and Federal Constitutions. Although this subject of this bill is not addressed by the City's Legislative Program, it has a significant impact on two issues of regional concern; public safety and the operational effectiveness of Lindbergh Field. For this reason it is being brought to the Council for action. FISCAL IMPACT: No direct impact, however the action to preclude any expansion of Lindbergh Field may impact the long-term viability of that facility and, subsequently, could lead to reconsideration of a regional or bi- national airport in the Otay Mesa area. August 14, 1996 RECOMMENDATION OPPOSE LETTERS YES DATE TO COUNCIL C:\wp51 \ANAL YSES\ab956.ana .,2()b ., ;J.. California 1995-96 Regular Session 1995 CA AB 956 Amended AMENDED IN SENATE AUGUST 5, 1996 AMENDED IN SENATE SEPTEMBER 15, 1995 AMENDED IN SENATE SEPTEMBER 7, 1995 AMENDED IN SENATE AUGUST 28, 1995 AMENDED IN ASSEMBLY APRIL 26, 1995 AMENDED IN ASSEMBLY MARCH 27,1995 ASSEMBLY BILL No. 956 ---------------------------------------------- ---------------------------------------------- INTRODUCED BY Assembly Member [0> Oucheny <OJ [0> (Coauthor: Senator Peace) <0] [A> Alpert <A] FEBRUARY 22, 1995 ---------------------------------------------- ---------------------------------------------- An act relating to [0> coastal resources, and making an appropriation therefor. <0] [A> tidelands and submerged lands within the City of San Oiego. <A] LEGISLATIVE COUNSEL'S DIGEST AB 956, as amended, [0> Oucheny <0] [A> Alpert <A]. [0> State Coastal Conservancy: state grants <OJ [A> Tidelands: San Oie90: public safety institutions <AJ . [A> Under existing law, state tidelands and submerged lands are held subject to a public trust for the benefit of all of the people of the state. <A] [A> This bill would declare that the use of tidelands and submerged lands within the area of San Die90 Bay formerly designated as the Naval Training Center-San Oiego (Camp Nimitz) for the operation of a public safety institute, as described, is a proper public trust use. The bill would make legislative findings. <A] [0> (1) Under the California Parklands Act of 1980, no state grant funds may be disbursed until the applicant agrees that any property acquired or developed with those funds shall be used by the applicant only for the purpose for which the funds were requested and that no other use of the property shall be permitted except by specific act of the Legislature. < OJ [0> This bill would authorize the State Coastal Conservancy to permit use for the construction of facilities related to the South Bay Ocean Outfall Project a portion of the reai property within the Tijuana River National Estuarine Research Reserve acquired by the City of San Oiego from the Japatul Corporation in part with funds 9ranted by the conservancy pursuant to the act, as specified, subject to specified conditions, including requiring the project proponent to pay specified funds to the conservancy, which would be continuously appropriated for expenditure by the conservancy for conservation purposes within the reserve. < 0] [0> (2) The bill would also authorize the conservancy to request the Department of General Services to retain, reserve, transfer, or convey to a public entity or nonprofit organization any portion of, or interest in, the real property known as Cascade Ranch in San Mateo County that is owned by the state and is under the control of the conservancy, subject to specified conditions. < 0] Vote: majority. Appropriation: [0> yes <0] [A> no <A]. Fiscal committee: yes. State-mandated local program: no. .2~Jr J THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOllOWS: [D> SECTION 1. (a) The legislature hereby finds and < D] [A> SECTION 1. (a) The legislature hereby finds and declares that the use of tidelands and submerged lands within the area of San Diego Bay formerly designated as the Naval Training Center-San Diego (Camp Nimitz) for the operation of a public safety institute, as described in subdivision (b), is a proper public trust use of those lands. <A] [A> (b) The legislature hereby further finds and declares as follows: <A] [A> (1) The military base closure process has made available lands which merit special consideration because of their former use within the context of a military operation. <A] [A> (2) The Base Reuse Committee established by the City Council of the City of San Diego has recommended that a public safety institute be established on the Camp Nimitz portion of the Naval Training Center, which constitutes tidelands and submerged lands subject to the public tidelands trust. <A] [A> (3) That parcel of land was previously used for public safety training, and contains existing structures which include a twenty-two million dollar ($22,000,000) fire simulator, one of only a very few in the entire country, a six million dollar ($6,000,000) indoor firearms range, and several classrooms and administrative office spaces. The cost savings achieved through the continued use of those facilities provide a significant public benefit and is consistent with the purposes of the tidelands public trust. Incorporating existing resources at the site, the cost of the public safety institute has been estimated as twenty-eight million eight hundred thousand dollars ($28,800,000). A 1988-89 study by police and fire departments estimated that a comparable institute elsewhere would cost one hundred million dollars ($100,000,000). <A] [A> (4) The Public Safety Institute would constitute both an entry level and advanced educational training facility for police, sheriffs, firefighters, lifeguards, correctional officers, dispatchers, and emergency medical technicians. <A] [A> (c) The establishment of a public safety institute by the City of San Diego, alone or pursuant to a joint powers agreement with other agencies, on the lands described in this act, does not constitute a violation of the public tidelands trust applicable to those lands. <A] [D> declares all of the following: < D] [D> (1) In 1981, the State Coastal Conservancy authorized implementation of the Tijuana River Estuarine Sanctuary, including the disbursement of funds under the California Parklands Act of 1980 (Chapter 1.69 (commencing with Section 5096.141) of Division 5 of the Public Resources Code) for the acquisition of property within the sanctuary boundaries. < D] [D> (2) In 1985, the State Coastal Conservancy authorized the City of San Diego to acquire property from Japatul Corporation with funds available from the authorization described in paragraph (1). The purpose of the acquisition was to implement the Tijuana River Estuarine Sanctuary and to protect the wildlife habitat and agricultural values of the property. < D] [D> (3) A small portion of that property, approximately one-half acre needed for a permanent structure and a 12-acre temporary staging area, is now needed by the City of San Diego for the construction of the South Bay Ocean Outfall Project. The City of San Diego is constructing the outfall project in conjunction with the International Boundary and Water Commission and the Environmental Protection Agency. The outfall project is a part of the international wastewater treatment plant which ,2/)bY is needed to alleviate sewage contamination impacts to the Tijuana River Valley and estuary and southern San Diego County beaches. The plant and outfall projects, costing hundreds of millions of dollars, will generate numerous jobs in the San Diego region. < D] [D> (41 Under subdivision (al of Section 5096.158 of the Public Resources Code, a change in the use of property acquired with state grant funds pursuant to the California Parklands Act of 1980 requires approval by specific act of the Legislature. < D] [D> (5) The use of the property for the construction of the South Bay Ocean Outfall Project may constitute a change in use from that authorized in the original grant agreement between the City of San Diego and the State Coastal Conservancy. < D] [D> (b) Pursuant to subdivision (al of Section 5096.158 of the Public Resources Code, the State Coastal Conservancy may authorize for use in the construction of facilities related to the South Bay Ocean Outfall Project a portion of the real property within the Tijuana River National Estuarine Research Reserve acquired by the City of San Diego from the Japatul Corporation in part with funds granted by the State Coastal Conservancy in 1985. If the conservancy authorizes that use of that property, it shall require the project proponent to do all of the foliowing: < D] [D> (1) Revegetate the property used on a temporary basis within one year from the date of the end of the construction period, to a level that is consistent with the adjacent native habitat so as to approximate, in the future, the ecological conditions of those adjacent areas. < D] [D> (2) Restore the area of the property used for permanent construction, including the structures and surrounding fencing, by planting those areas with native vegetation. < D] [D> (3) Pay the conservancy the amount of the fair market value of the portion of property that is used for permanent construction and the amount of the fair market lease rate for the portion of the property that is used on a temporary basis. < D] [D> (41 Pay to the conservancy the sum of four hundred thousand dollars ($400,000) to be used for the mitigation of unforeseen impacts of the project on the resources of the Tijuana River National Estuarine Research Reserve. < D] [D> Ic) The State Coastal Conservancy shall deposit any funds received pursuant to subdivision (b) into a special deposit fund account, and those funds are hereby continuously appropriated for expenditure by the conservancy for conservation purposes within the Tijuana River National Estuarine Research Reserve, with priority to be given to the acquisition of land in Goat Canyon. < D] [D> SEC. 2. Notwithstanding any other provision of law, the State Coastal Conservancy may, consistent with Division 21 (commencing with Section 310001 of the Public Resources Code, request the Department of General Services to retain, reserve, transfer, or convey to a public entity or nonprofit organization, any portion of, or interest in, the real property known as Cascade Ranch in San Mateo County, that is owned by the state and is under the control of the conservancy, subject to the following conditions: < D] [D> (al The Department of General Services, at the request of the State Coastal Conservancy, shall retain for the conservancy, reserve for the state, transfer, or convey to a public entity or nonprofit organization an agricultural easement over any portion of, or interest in, the reai property that the conservancy determines is appropriate for the protection of agricultural uses. Any such portion of, or interest in, that property shali be clearly described and the description recorded in the Official Records of the County of San Mateo. < D] [D> (b) The Department of General Services, at the request of the State Coastal Conservancy, shall retain for the conservancy, reserve for the state, transfer, or convey to a public entity or nonprofit ..2~b ..f organization any portion of, or interest in, the real property that the conservancy, after consultation with the Department of Fish and Game, determines is appropriate for the protection of endangered species, consistent with the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.) or the California Endangered Species Act IChapter 1.5 (commencing with Section 2050) of Article 1 of the Fish and Game Code), or other habitat and recreational purposes. Any such portion of, or interest in, that property shall be clearly described and the description recorded in the Official Records of the County of San Mateo. < DJ [D> Ic) The State Coastal Conservancy shall provide for the periodic monitoring of any easement that is created for the purposes specified in subdivisions (a) and (bl. < DJ [D> Id) The Department of General Services, at the request of the State Coastal Conservancy, shall transfer the remaining interest in the property to private buyers in a manner that is consistent with continued agricultural use of the property. < DJ ~/)J "t RESOLUTION NO. I~~.z~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA TAKING A POSITION TO OPPOSE AB 956, WHICH IS NOT ADDRESSED IN THE LEGISLATIVE PROGRAM AND THEREFORE REQUIRES DIRECT COUNCIL ACTION WHEREAS, AB 956 (Alpert) would declare an urgent need for the on-going use of the tidelands and submerged lands at the Naval Training Center (Camp Nimitz) for purposes of public safety training; and WHEREAS, this would pre-empt any attempts by the San Diego Unified Port District or other agencies to find alternative uses for the property being vacated by the Navy, including the expansion of Lindbergh Field; and WHEREAS, actions which preclude the expansion of Lindbergh Field may impact the long-term viability of that facility and lead to the reconsideration of a regional or bi-national airport at Otay Mesa. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby oppose AB 956 (Alpert) Tidelands: San Diego: Public Safety Institution, which is not addressed in the Legislative Program. Presented by Approved as to form by Mayor Shirley Horton /) {ff-~lfS.{Yl ~~~A&_/~_ r- Ann Y. Moore, Act~g ci ~or Attorney C:\rs\AB956.opp ;J.~IJ ., ? / ;/1/,