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HomeMy WebLinkAboutAgenda Packet 1995/05/23 Tuesday, May 23. 1995 6:00 p.m. "I decla~ t1nd'lt!' penalty 01 perjury that I em employed by the City of ChlJ:a Visla in the Office of the City Clerk and t113f1 pooted this AgenJa/Notice on the Bulletin Board at the PUbl~r~;S Building and at City Hall on DATED.. ~;p. 1.>" SIGNED 6/~..-""" Rerular Meetin2 of the Citv of Chula Vista Citv Council Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: Councilmembers Alevy _, Moot_. Padilla _, Rindone _. and Mayor Horton _' 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: May 11, 1995 (Special Meeting) 4. SPECIAL ORDERS OF THE DAY: a. Oath of Office: Glenn Goerke - Growth Management Oversight Commission. b. Proclaiming the week of May 21 through May 27, 1995 as "National Public Works Week." The proclamation will be presented by Mayor Horton to John Lippitt, Director of Public Works. c. Presentation by returning delegation from Sister City of Odawara, Japan. ***** Effective April 1, 1994, there have been new amendments to the Brown Act. 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 the cost involved, there will be no videotaping of the reconvened portion of the meeting. However, final actions reported will be recorded in the minutes which will be available in the City Clerk's Office. ***** CONSENT CALENDAR (Items 5 through 10) The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the Council by one motion without discussion unless a Councilmember, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff recommendation.) Items pulled from the Consent Calendar will be discussed after Board and Commission Recommendations and Action Items. Items pulled by the public will be the first items of business. 5. WRITTEN COMMUNICATIONS: a. Letter from the City Attorney stating that there were no observed reportable actions taken from the Closed Session of 5/16/95. It is recommended that the letter be received and filed. \ Agenda -2- May 23, 1995 6. RESOLUTION 17899 APPROVING AGREEMENT WITH THE ACCOUNTING FIRM OF MORELAND & ASSOCIATES TO PROVIDE AUDITING SERVICES FOR FISCAL YEARS 1994/95, 1995/96, AND 1996/97, WITH THE OPTION TO EXTEND FOR TWO ADDITIONAL YEARS - City Charter requires an annual independent audit. Request for Proposals were sent to 27 audit firms. Staff recommends approval of the resolution. (Director of Finance) 7. RESOLUTION 17900 APPROVING AN AGREEMENT WITH BERRYMAN & HENIGAR FOR APPORTIONMENT SERVICES FOR EXISTING ASSESSMENT DISTRICTS AND AUTHORIZING MAYOR TO EXECUTE SAID AGREEMENT - The proposed agreement is to retain the services of Berryman & Henigar to perform the respreading of assessments on existing assessment districts and prepare the" Armual Collection Report" for submittal to the County for inclusion in the property tax bill. The agreement has provisions for yearly renewals through 1999. Staff recommends approval of the resolution. (Director of Public Works and Director of Finance) 8. RESOLUTION 17901 AUTHORIZING ISSUANCE OF BONDS AND APPROVING FORMS OF BOND INDENTURE, SECURITY ENHANCEMENT AGREEMENT, PRELIMINARY OmCIAL STATEMENT , AND SECOND AMENDMENT TO ACQUISITION/FINANCING AGREEMENT FOR ASSESSMENT DISTRICT NUMBER 94-1 (EASTLAKE GREENS - PHASE m - On 4/25/95, Council established Assessment District Number 94-1 and levied assessments for the acquisition of certain infrastructure serving the south portion of the EastLake Greens development pursuant to the Municipal Improvement Act of 1913. Staff recommends approval of the resolution. (Director of Public Works) 9. RESOLUTION 17902 APPROVING AGREEMENT FOR DEFERRAL OF SEWER CAPACITY FEE FOR A CAR WASH TO BE LOCATED AT 3048 BONITA ROAD- The Agreement provides for the release of $13,986 of Sewer Capacity Fees previously paid by the developer of the Bonita Car Wash back to him until the car wash has been in operation for one year. The actual fee will be determined at that time on the basis of 90 % of the average amount of water consumed on site per day. Staff recommends approval of the resolution. (Director of Public Works) 10. RESOLUTION 17903 APPROVING REQUEST FOR WAIVER OF DEBT FROM CHULA VISTA AQUATIC ASSOCIATION - The Chula Vista Aquatic Association (CV AA) is requesting a waiver of debt associated with their past use of swimming pool facilities. The fees are for staff services (lifeguards) provided during CV AA's use of pools for team practices and meets. CV AA is requesting that the City waive the outstanding balance due (along with fees that have been assessed for past-due billings), and allow them to continue use of the pools from a debt-free starting point. Staff recommends approval of the resolution. (Director of Parks and Recreation) * * END OF CONSENT CALENDAR * * \. Agenda -3- May 23, 1995 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the labby and submit it to the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff recommendation.) Comments are limited to five minutes per individual. II. PUBLIC HEARING CONDITIONAL USE PERMIT PCC-94-09: REQUEST TO EXTEND APPROVAL FOR A PRIVATE SCHOOL FOR APPROXIMATELY THREE YEARS (THROUGH SEPTEMBER 1999) AND TO ALLOW THE EXPANSION OF SAID SCHOOL FACILITIES INTO THE SECOND STORY OF THE BUILDING LOCATED AT 2400 FENTON STREET WITHIN THE EASTLAKE BUSINESS CENTER - COVENANT CHRISTIAN SCHOOL - Covenant Christian School was approved by Council to operate at 2400 Fenton Street within the EastLake Business Center for a 2.5 year period extending through June 1996. The School is requesting to extend the permit for 3 years (to September 1999), and to expand the operations from the first floor to include the entire building and to increase the maximum enrollment from 208 to 260 children. Staff recommends approval of the resolution. (Director of Planning) RESOLUTION 17904 DENYING A REQUESTED TIME EXTENSION BUT APPROVING A REQUESTED EXPANSION OF AN EXISTING CONDITIONAL USE PERMIT (PCC-94-09) TO COVENANT CHRISTIAN SCHOOL TO OPERATE A PRIVATE SCHOOL AT 2400 FENTON STREET WITHIN THE EASTLAKE BUSINESS CENTER ORAL COMMUNICATIONS 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 discussion. (State law, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the yellow "Request to Speak Under Oral Communications Form" available in the lobby 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 action. Your time is limited to three minutes per speaker. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to them for consideration by one of the City's Boards, Commissions and/or Committees. 12. ORDINANCE 2630 AMENDING SECTION 2.28.110 OF THE MUNICIPAL CODE RELATING TO APPOINTMENT OF MEMBERS TO THE BOARD OF ETIDCS (first readin,,) - The Board of Ethics is proposing a revision to the current Code of Ethics which is presented for Council's review. The purpose of the revision is to allow for an alternative appointment process should the Presiding Judge of the South Bay Municipal Court Judicial District fail or decline to make an appointment. It is recommended that Council place the ordinance on first reading. (Board of Ethics) ~ Agenda -4- May 23, 1995 13. REPORT CITY REVIEW AND POSITION ON SB 1066 (CAMPBELL) - DEVELOPMENT: FEES; SCHOOL FACILITIES - On 5/5/95, the Growtb Management Oversigbt Commission (GMOC) reviewed tbe scbools thresbold and beard reports from the Cbula Vista Elementary Scbool District and Sweetwater Union Higb Scbool District. Botb districts expressed extreme concern over pending SB 1066 whicb they indicated could bave drastic negative consequences to local scbool planning, financing and construction efforts. The GMOC urges tbat Council direct appropriate staff to immediately review tbe legislation and consider forwarding a letter of opposition. (Tris Hubbard, Cbainnan, Growtb Management Oversigbt Commission) ACTION ITEMS The items listed in this section of the agenda are expected to elidt substantial discussions and deliberations by the CouncU, staff, or members of the general public. The items will be considered individually by the CouncU and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting. Public comments are limited to five minutes. 14. ORDINANCE 2631 ADDING SECTION 17.07.035 TO THE MUNICIPAL CODE RELATING TO LANDSCAPING ACT PROVIDERS (first readiDlll - Due to cbanges in State law in October 1993, if a majority of property owners protest an increase in tbe assessment, that increase cannot go into effect, tbus bampering tbe City's ability to bave sufficient funds on band to maintain tbe districts. To counter having such variations in the assessments from year to year and to minimize the threat of majority protest year to year whicb could automatically eliminate tbe increase regardless of need, staff is proposing amendments to the ordinance to allow tbe City to better stabilize tbe yearly assessments by allowing tbe amount collected on tbe taxes to be different from tbe amount of tbe assessment. Staff is also proposing to incorporate an inflation factor in tbe annual assessment to cover minor cost increases, if needed, tbat could not be cballenged by a majority protest. The public would still bave tbe rigbt to protest the assessment and Council would still have lbe autbority to reduce assessments. Staff recommends Council place tbe ordinance on first reading. (Director of Public Works) 15. RESOLUTION 17905 AMENDING CHAPTER VII, SECTION B, OF THE MASTER FEE SCHEDULE TO ESTABLISH NEW FEES FOR VARIOUS AQUATIC PROGRAMS AND ACTIVITIES - During staff's budget review process, and tbe preparation of potential budget reductions for fiscal year 1995/96, several sources of additional revenue were identified. One is a proposed increase in fees for several aquatic programs including daily admission fees, pass fees, and class fees for various instructional swimming classes. The increases are being proposed at this time because the registration process for summer swimming classes will commence on 6/10/95 and any adjustments in fees would need to be implemented before that date. Staff recommends approval of tbe resolution. (Director of Parks and Recreation) ~ Agenda -5- May 23, 1995 16. RESOLUTION 17906 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 1995/96 SPREAD OF ASSESSMENTS FOR EASTLAKE MAINTENANCE DISTRICT 1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11, 1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS - Based upon the advice of the City Attorney, EastLake Maintenance District Number 1 and Open Space Districts 1 and 10 have been separated due to conflict of interest concerns. Staff recommends approval of the resolution. (Director of Public Works) 17. RESOLUTION 17907 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 1995/96 SPREAD OF ASSESSMENTS FOR OPEN SPACE MAINTENANCE DISTRICT 1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULy 11, 1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS - Based upon the advice of the City Attorney, EastLake Maintenance District Number 1 and Open Space Districts 1 and 10 have been separated due to contlict of interest concerns. Staff recommends approval of the resolution. (Director of Public Works) 18. RESOLUTION 17908 APPROVING THE ENGINEER'S REPORT FOR THE FISCAL YEAR 1995/96 SPREAD OF ASSESSMENTS FOR OPEN SPACE MAINTENANCE DISTRICT 10, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11,1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS - Based upon the advice of the City Attorney, EastLake Maintenance District Number 1 and Open Space Districts I and 10 have been separated due to contlict of interest concerns. Staff recommends approval of the resolution. (Director of Public Works) 19.A. RESOLUTION 17909 APPROVING THE ENGINEER'S REPORTS FOR THE FISCAL YEAR 1995/96 SPREAD OF ASSESSMENTS FOR OPEN SPACE DISTRICTS 2- 9,11,14,15,17,18,20,23,24,26,31, BAY BOULEVARD AND TOWN CENTER, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, DECLARING THE INTENTION TO ESTABLISH ZONE 9 WITHIN OPEN SPACE DISTRICT 20 AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11,1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS - The City administers 23 open space districts established over the last 25 years. The districts provide the mechanism to finance the maintenance of common open space area associated with and benefitting that particular development. As part of the process, a levy of an annual assessment is necessary to enable the City to collect funds for the proposed open space maintenance. The City Engineer has prepared and filed reports on assessments for all existing open space districts. In a letter dated 10/17/94, Sweetwater Authority requested exemption from the yearly open space assessment for a lot that they own in Open Space District 14. Staff recommends Council approve the resolutions and deny Sweetwater Authority exemption. (Director of Public Works) B. RESOLUTION 17910 APPROVING BOUNDARY ADJUSTMENT FOR OPEN SPACE DISTRICT 31 ~ Agenda -6- May 23, 1995 20. REPORT REVIEW OF DRAFT MULTIPLE SPECIES CONSERVATION PROGRAM (MSCP) - The City of San Diego has released the draft MSCP for public review. Staff has completed a preliminary review of tbe plan and has also obtained input from property owners within the planning area. Staff recommends Council accept the report. (Director of Planning) 21. REPORT UPDATE ON REGIONAL SEWER ISSUES - An oral report will be given by staff. 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 jive minutes per individual. OTHER BUSINESS 22. CITY MANAGER'S REPORTISl a. Scheduling of meetings. 23. MAYOR'S REPORTISl a. Ratification of appointments: Maria Fernanda Comas - Youth Commission; and Frances S. Larson - International Friendship Commission. 24. COUNCIL COMMENTS Council member Rindone a. Update on installation of traffic signal at Telegraph Canyon Road/Paseo Ladera. ADJOURNMENT The meeting will adjourn to (a closed session and thence to) a Special Worksession/Meeting on Tuesday, May 30, 1995 at 6:00 p.m. in the Council Chambers, Public Services Building, thence to a Special Worksession/Meeting on Wednesday, May 31, 1995 at 6:00 p.m. in the Council Conference Room, Administration Building, and thence to the Regular City Council Meeting on June 6, 1995 at 4:00 p.m. in the City Council Chambers, Public Services Building. A Special Meeting of the Redevelopment Agency will be held immediately following the City Council meeting. A Special Joint Meeting of the Public Financing Authority/City Council will be held immediately following the Special Meeting of the Redevelopment Agency. \a, Agenda -7- May 23, 1995 ***** CLOSED SESSION Unless the City Attorney, the City MalUlger or the City Council states otherwise at this time, the Council will discuss and deliberate on the foUowing items of business which are pennitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protect the interests of the City. The Council is required by law to return to open session, issue any reports of final action taken in cwsed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be tennilUlted at this point in order to save costs so that the Council's return from closed session, reports of JilYll action taken, and adjournment will not be videotaped. Nevertheless, the report of filUll action taken will be recorded in the minutes which will be available in the City Clerk's Office. 25. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 . Chula Vista and nine other cities vs. the County of San Diego regarding solid waste issues (trash litigation). . Chaparral Greens vs. the City of Chula Vista, County of San Diego, and Baldwin. 2. Anticipated litigation pursuant to Government Code Section 54956.9 . Metro Sewer Adjustment Billing (water reclamation and expansion costs) and EPA lawsuit. CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 . Agency negotiator: John Goss or designee for CVEA, WCE, Executive Management, Mid- Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CVEA) and Western Council of Engineers (WCE). Unrepresented employee: Executive Management, Mid-Management, and Unrepresented. 26. REPORT OF ACTIONS TAKEN IN CLOSED SESSION ***** 1, ~ ~ \ , May 18, 1995 ~ . SUBJECT: The Honorable Mayor and City coun~, John D. GosS, city Manager~ ~~ city Council Meeting of May 23, 1995 TO: FROM: This will transmit the agenda and related materials for the regular city Council meeting of Tuesday, May 23, 1995. Comments regarding the Written communications are as follows: 5a. This is a letter from the City Attorney stating that there were no observed reportable actions taken by the city Council at the Closed Session on 5/16/95. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. JDG:mab 4<L - Chula Vista-Odawara Sister City Visitation - 1995 Report to the IFC by Commissioner Terry Thomas The Delegation departed from San Diego Airport on April 29th and traveled to Narita Airport from Los Angeles International Airport by ALA Nippon. The delegation traveled directly to Odawara for a Five Day stay in our sister city. We arrived in Odawara about 9:30 pm, although we had been expected to arrive around 11 pm. The traffic flow from Tokyo was very smooth and pleasant. We were greeted at the Asian Center by Mr. Nobu Seto, our liaison with the Cultural Division of Odawara City and a group of about 15 Odawara City Hall representatives and Odawara,International Friendship Association members, as well as Mr. Tadasha Shiino, who was chairperson of the five day visitation event. Mutual introductions were made (Odawara group by Nobu and Chula Vista group by Terry). Mayor Horton made a greeting statement and the delegation felt very welcomed. The Members of the Delegation were (1) Mayor Shirley Horton (3) Roy Muraoka (5) Fran Larson (7) Colleen Selleck (9) Henry Yada (11) Michael Yada (13) James Yada (15) Patty Morris (2) Terry Thomas (4) Aiko Muraoka (6) Karen Escobedo (8) Carole Dupuis- Tessicini (10) Itsuko Yada (12) Sonny Yada (14) Sandy Ojiri (16) Melissa Morris (17) Tushi (Pat's mom) Monday was spent on a tour of Hakone, a boat ride on the lake, and a visit to the Natural History Museum, the Checkpoint, and other sites. We then returned to the Asian Center for the evening Tea Ceremony and the formal Welcome Reception. The Tea Ceremony was charming with all the cultural aspects of the ceremony displayed and experienced by the delegation, along with representatives of the Soroptomist Club, the OIFA, and others. Our presentations from the Mayor, Chula Vista City, IFC, CV Library etc. were on display at the Welcome Ceremony (Note from Terry: After arrival and before going to my room, I met privately with Shiino-San and Nobu Seto to pass on certain items for the display and the manner of display. Included was the Hands of Friendship Blanket and also the Sea Gull on Manzanita Artpiece, etc. See Additional Detailed Report by Terry T. on these items, their inscriptions, and to whom they were presented in the Odawara binder. The Welcome Ceremony was elegant, warm, and very friendly. Mayor Y oshiaki Ozawa welcomed us to Odawara and offered a toast to us with the vintage Saki of very old stock. He then made a presentation to Mayor Horton and the City of Chula Vista. Our Mayor Shirley Horton made a wonderful speech in both English and Japanese. She also presented the Mayor and People of Odawara with a special Handicraft Quilt Wall Hanging. Past Chair of the city Council, Mr. Euryei Imai; Mr. Tadashi Shiino, Chair of the Visitation Program, and Mr. Tomimasa Hirosawa, President of the OIFA and the Odawara Chamber of Commerce and Industry made short speeches. Commissioner Terry Thomas made a short speech and presentations on behalf of the Chula Vista International Friendship Commission and the Delegation. Mayor Ozawa went to each delegate to present a special Certificate. tic - ) 4 / Tuesday we had a visit to Odawara City, museums, saw a demonstration of how the wood handicraft items for which Odawara is famous were made. We were also hosted to a wonderful luncheon by the Odawara Rotary Clubs who greeted us at the door to the restaurant with a delegation of Odawara warriors in elegant regalia. Chieko Suzuki, chairperson of the 1993 Visitation to Odawara was at the entrance to greet us and her son Ted Suzuki was one of the hosts. Dr. Ogawa made a short speech in English welcoming us (in our Visitation binder) and Mayor Horton (Chula Vista pins), Roy and Aiko Muraoka (C.V. Chamber of Commerce pins) , and Henry and Itsuko Yada (pens), Terry Thomas (Rotary banners), Carole Tessicini (Coronado pins) and Fran Larson (Olympic Center pins) made various presentations. Tuesday evening theOdawara International Friendship Association had a steaming and lively dinner party for us at a local restaurant banquet room. Mr. Hiro Watanabe and Mrs. Yukie Hiroshi who had visited Chula Vista were master and mistress of ceremonies. A great time was had by all. Wednesday was hectic: We visited the Odwara Castle in the morning and at 11 am were treated to Lunch by the three Lions Clubs of Odawara. Terry who is President of the Southwest Lions Clubs made presentations on behalf of both that Club as well as the Chula Vista Host Lions (Lion Tina Dushanek, President). The four Lions presidents ended the lunch with a simultaneous ROAR and then it was on to the Famous Hojo festival. Mayor Shirley Horton, in a charming costume presented by the Odawara hosts, made an opening speech along with several other Mayors and dignitaries at the opening ceremony involving thousands of participants in the Festival parade. We were very proud of her...She obviously impressed our sister city sisters and brothers also. We then moved on to the Grand Stand to watch the fantastic parade and incredible display of thousands of years of history and culture. In the evening we then made individual Home Visit to different family hosts. The beautiful hospitality, friendship, sharing and mutual respect and love was obvious during the home visit. Each person from our delegation had a different, wonderful story to tell about their home visit with their Odawara family and new friends. Thursday was a free day. Mayor Horton, Fran Larson, and Terry were invited by Akiko Ozawa, the Mayor's wife to be her guest for the day. We visited a high in the sky temple, had a lunch at a local Italian restaurant, and enjoyed our visit. Thursday evening was the Sayonara Party at the Asian Center. Again, a very elegant and extremely exciting affair. It was buffet. There was a great deal of mixing and moving about by both the delegates and the several hundred people attending. Mayor's uncle was present, as well as many city and School Officials, e.g. President of the School Board, Chamber of Commerce and both Rotary and Lions Service Club Presidents and officers, former exchange teachers, students, host families, and old friends. We were having such a great time socializing that many of the delegation did not want to take time out to eat...it was so awesome! At the end, two long rows of people bid fare- thee-well to each delegate and the Mayor gave them special vintage Saki! Friday morning there was a huge entourage of people to bid us farewell again, as we embarked on our bus trip to Kamikura & Tokyo tour and the famous Imperial Hotel where we stayed for two more nights in elegance...in rooms that ordinarily cost $400 per night. Some of the group went on to Kyoto or other places. We all had many fond memories of our Odawara friends and looked forward to their visit to Chula Vista in 1996. ~Vt.. ~ ,--t::~~ CllY OF CHUlA VISTA OFFICE OF THE CITY ATTORNEY Date: May 17, 1995 From: The Honorable Mayor and City courI.1r Bruce M. Boogaard, City Attorneyro~ Report Regarding Actions Taken in Closed Session for the Meeting of 5/16/95 To: Re: The City Attorney hereby reports to the best of my knowledge from observance of actions taken in the Closed Session, that there were no actions taken in the Closed Session of 5/16/95 which are required under the Brown Act to be reported. BMB:lgk C:\lt\c!o8ses8.no s;,..,j /5~- 2 276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-5037 COUNCIL AGENDA STATEMENT Item Meeting Date ~ 5/23/95 ITEM TITLE: /7~9C; Resolution Approving agreement with the accounting firm of Moreland & Associates to provide auditing services and authorizing the Mayor to execute said agreement REVIEWED BY: Director of Financ~ 1) A City Manager Jq ~~ (4/5ths Vote: Yes No X ) -- SUBMITTED BY: Section 1017 of the Chula Vista Charter requires an annual independent audit of the City. The current three-year agreement with Deloitte & Touche terminates with completion of the June 30, 1994 audit report. A Request for Proposals to provide auditing services for the City, Redevelopment Agency, and Bayfront Conservancy Trust was sent to 27 auditing firms. Proposals were received and evaluated by a Selection Committee appointed by the City Manager composed of the Director of Finance, the Senior Accountant, and the Director of Finance for the City of La Mesa. RECOMMENDATION: That Council adopt the resolution approving the agreement with the accounting firm of Moreland & Associates for fiscal years 1994-95, 1995- 96, and 1996-97, with the option to extend for two additional years. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Twenty-seven audit firms were mailed a Request for Proposal to audit the financial transactions of the City of Chula Vista, Redevelopment Agency, and Bayfront Conservancy Trust (Attachment A). In addition, the firms were asked to bid on reviewing the Transient Occupancy Tax returns of five to seven motels in the City. However, it was subsequently decided to exclude the Transient Occupancy Tax work from this contract at this time due to the questionable value of the information received from this effort in past years. t~/ ~ Page 2, Item Meeting Date 5/23/95 ~ Seven proposals were received and evaluated by the Selection Committee based on the following criteria: A. Prior experience of staff to be assigned. B. Organization, size, and structure of the audit firm. C. Qualifications of staff to be assigned to the City's audit. D. Audit firm's understanding of the work to be performed and comprehensiveness of audit work plan. E. Price of the proposal. The top three rated firms Moreland & Associates, Calderon, Jaham & Osborn, and KPMG Peat Marwick, were then interviewed by the Selection Committee. Following this process, the Committee unanimously agreed to recommend the selection of Moreland & Associates to the City Council. Not only was Moreland & Associates rated the highest in the technical categories of experience and understanding of the required work by all three Selection Committee members, but they also submitted the lowest fee ($39,000) of the firms rated as qualified. The second lowest cost proposal was submitted by Calderon, Jaham & Osborn at $40,500. Moreland & Associates is a regional accounting/auditing firm with offices in Newport Beach and Carls bad employing thirty-five professionals dedicated almost exclusively to local government clients. They currently audit forty-one California cities, thirty-one redevelopment agencies, and many other governmental entities. Locally, their clients have included Escondido, Poway, Solana Beach and San Marcos. FISCAL IMPACT: The cost of the audit for the fiscal year ended June 30, 1995, will be $39,000 (compared to $51,700 this year). Fees for the two succeeding fiscal years will be adjusted based on the Consumer Price Index not to exceed 5% per year. Of the total fees, $23,000 will be paid from the General Fund (compared to $24,000 this year), $6,500 from the Redevelopment Agency (compared to $9,100 this year), $3,500 from the Bayfront Conservancy Trust (compared to $4,200 this year), $2,000 from the Housing Agency Fund (compared to $3,400 this year), and $4,000 from Community Development Block Grant (compared to $11,000 this year). t,..2. ,0 RESOLUTION NO. / 7~99 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT WITH THE ACCOUNTING FIRM OF MORELAND & ASSOCIATES TO PROVIDE AUDITING SERVICES FOR FISCAL YEARS 1994-95, 1995-96 AND 1996-97, WITH THE OPTION TO EXTEND FOR TWO ADDITIONAL YEARS WHEREAS, section 1017 of the Chula Vista Charter requires an annual independent audit of the City; and WHEREAS, the current three-year agreement with Deloitte & Touche terminates with completion of the June 30, 1994 audit report; and WHEREAS, a Request for Proposals to provide services for the City, Redevelopment Agency, and Conservancy Trust as sent to 27 auditing firms; and auditing Bayfront WHEREAS, seven proposals were received and evaluated by a Selection Committee appointed by the City Manager composed of the Director of Finance, the Senior Accountant, and the Director of Financing for the City of La Mesa; and WHEREAS, Moreland & Associates rated the highest in the technical categories of experience and understanding of the required work by all three Selection Committee members, and they submitted the lowest bid ($39,000) of the firms rated as qualified; and WHEREAS, this selection process complied with the purchasing requirements set forth at section 2.56.220 through 2.56.240 of the Chula vista Municipal Code. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Agreement with the accounting firm of Moreland & Associates for fiscal years 1995-95, 1995-96 and 1996-97, with the option to extend for two additional years, to provide auditing services, a copy of which is on file in the office of the City Clerk as Document No. (to be completed by the Clerk in the final document). BE IT FURTHER RESOLVED that the Mayor of the city of Chula vista is hereby authorized and directed to ex ute said Agreement on behalf of the city of Chula vis Presented by Bruce M. Attorney Robert Powell, Director of Finance ') C:\rs\loreland ~'3 1&~4- ~ Agreement between City of Chula Vista and Moreland & Associates for Audit services This agreement ("Agreement"), dated May 23, 1995 for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("city"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, section 1017 of the City Charter requires the city Council to appoint an independent auditor to audit the annual financial statements of the City; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 1 6-5 '{)- Obligatory provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and 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. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, city and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 2 b-~ \~ E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categor- ies, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names city and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 3 t-1 ~ In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Securitv for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney' which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the city at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the 1. The City Attorney's Office prefers that you obtain approval of the surety or bank, the form of the security and the amount of the security from the Risk Manager in the first instance and not the City Attorney. The City Attorney's office would be available on such risk issues as an alternate only if the Risk Manager is unavailable and the matter can't wait. 2pty9.wp standard Form Two party Agreement (Fourth Revision) November 2, 1993 Page 4 ~-~ ~ City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation city shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The city shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consult- ant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City'S account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 5 ~-I ~ Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City'S Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of 2pty9.wp Standard Form Two party Agreement (Fourth Revision) November 2, 1993 Page 6 ?-/O (\ Exhibit A, or if none are specified, then as determined by the City Attorney. 1 B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreeme~t. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 7 ~-~ ~ Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of city. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect-and hold harmless the city, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the city, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the city, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. consultants' indemnification of City shall. not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 8 "-/.2. ~ thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the city, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused city by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse city for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. 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 Consultant 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, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. OWnership, pUblication, Reproduction and Use of Material 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 9 &-/3 ~ 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 Consultant in the united states or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor city is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of perCorming the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the city in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 10 ~~/f ~ Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by city, Consult- ant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 11 ~-/5' 'f';- t{ instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing 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. [end of page. next page is signature page.] 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 12 h~/~ ~ Signature Page to Agreement between city of Chula Vista and Moreland & Associates for Audit Services. IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,19_ city of Chula Vista by: shirley Horton, Mayor Attest: Clerk y Attorney Dated: Moreland & Associates By: [name of person, title] By: [name of person, title] Exhibit List to Agreement (x ) Exhibit A. ( ) Exhibit B: 2pty9.wp Standard Form Two Party Agreement (Fourth Revision) November 2, 1993 Page 13 t-/? !u-I~ ').V( Exhibit A to Agreement between City of Chula vista and Moreland & Associates 1. Effective Date of Agreement: May 23, 1995 2. city-Related Entity: (x) City of Chula vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the city of Chula Vista, a political subdivision of the state of California () Industrial Development Authority of the City of Chula vista, a ( ) other: [insert business form] a 3. Place of Business for city: city of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Moreland & Associates 5. Business Form of Consultant: ( ) Sole Proprietorship (x) partnership ( ) corporation 6. Place of Business, Telephone and Fax Number of Consultant: Moreland & Associates 610 Newport Center Drive, Suite 840 Newport Beach, California 92660 Voice Phone (714) 760-9788 Fax Phone (714) 640-2543 7. General Duties: A. General Scope of Work 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 1 (p ~ /1 1 Consultan~ shall conduct an audit of the described activities pursuant to Generally Accepted Auditing standards for the fiscal years ending June 30, 1995, 1996, and 1997, and at the City's option, 1998 and 1999. The audit examination should not include a detailed audit of all of the transactions recorded in the accounts of the City, unless otherwise herein specified, but will be based upon tests of accounting records and other supporting evidence for selected periods during the fiscal year under review sufficient to enable the contracting independent auditor to express an informed written opinion on: 1. The financial position of the various funds of the City. 2. The propriety followed. of accounting principles 3. Compliance with applicable laws. 4. The financial accountability of officers and employees. organizations to be Audited 1. City of Chula Vista ( the "city") 2. Redevelopment Agency of the City of Chula vista 3. Chula Vista Bayfront Conservancy Trust ("BCT") Additional Special Audits and Services 1. Financial and compliance audits required by the Single Audit Act of 1984. 2. Compilation Report for Dorado Livermore Finance Agency. 3. Preparation of the Annual State and Federal Tax Return for the "BCT". the Chula Vista - EI Menlo Park Housing Reports to be Issued FOllowing the completion of the audit of the fiscal year's financial statements, the auditor shall issue: 1. A report on the fair presentation of the financial statements in conformity with 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 2 t-;2t) , t generally accepted accounting principles. 2. A report on the internal control structure based on the auditors understanding of the control structure and assessment of control risk. 3. A report on compliance with applicable laws and regulations. 4. A report on the internal control structure used in administering Federal financial assistance programs. 5. A report on compliance requirements applicable to financial assistance programs. with major specific Federal 6. A report on compliance with specific requirements applicable to nonmajor Federal financial assistance programs. 7. A report on requirements for Federal financial compliance with gene~al both major and nonmaJor assistance programs. 8. A report on compliance with specific requirements applicable to the state - Local Transportation Partnership Program. In the required reports on internal controls the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure which could adversely affect the organization's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Nonreportable conditions discovered by the auditors shall be reported in a separate letter to management which shall be referred to in the reports on internal controls. The reports on compliance shall include all 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 3 t~.2/ ,.'\ ~ instances of noncompliance. Auditors shall be required to make an immediate written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the city council, city Manager, City Attorney and Director of Finance. 8. Scope of Work and Schedule: DETAILED SCOPE OF WORK A. Budget In accordance with provisions of the Charter of the city of Chula Vista, it is the duty of the city Manager to prepare and submit to the council the annual budget and such reports as may be required by that body. The outside auditor shall examine the final budget document as approved by tpe City Council and compare the estimated revenues and appropriations as shown in the budget document with the entries recorded on the revenue ledger and the appropriation ledger maintained by the Finance department. B. Funds The auditor shall examine the City Charter, ordinances or resolutions, and minutes of the city Council pertaining to all funds of the City to determine the purpose of each fund and the proper disposition of all funds revenues, expenditures, and year-end balances. The auditor shall examine the various fund transactions and balances in each fund and prepare the appropriate financial statements for the audit report. C. Verification of Cash and Securities 1. Cash and Checks The auditor shall count all cash and checks in the Finance Department as of June 30. The auditor shall subsequently be satisfied that all items counted and verified are deposited in the City's depository bank. Investment securities owned by the City and held in safekeeping by the City's various banks and financial institutions shall be verified as to their existence as of June 30. written confirmation shall be obtained from 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 4 h - ..2 'J- ~ all City depositories of balance on hand at June 30. 2. Surprise Cash Counts The auditor shall make, during the year, at least two surprise cash counts of the funds in the Finance Department in cooperation with staff members. 3. Collateral Pledged for Funds on Deposit The auditor shall examine the records of pledged collateral and make such tests of depository bank pooled collateral operations as may be necessary to express an opinion as to the legal sufficiency of the collateral to safeguard the city of Chula vista's bank deposits. 4. Accounting Records The auditor shall examine the City's internal accounting and administrative controls to determine that accounting procedures are adequate to safeguard assets and provide reasonable assurance of proper recording of financial transactions. D. Assets 1. Cash and Investments Treasury and investment operations are the responsibility of the Finance Department. The auditors shall verify the cash balances and the existence of the investments. The investments market value shall be reviewed and compared to book value. The auditor shall review balances as of June 30 and investments earnings recorded during the fiscal year. The footnote disclosure shall be in compliance with GASa #3. 2. Fixed Assets The auditor shall examine the procedures for recording the acquisition of and the disposal of property owned by the city. The auditor shall compare the annual inventories of property with the controls maintained by the Finance Department. The auditor shall review the transactions involving fixed assets to the extent necessary to assure that 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 5 ~'-..23 '1-'4. accountability for fixed assets is maintained. E. Liabilities 1. Accounts Payable The auditor shall make a sufficient examination of accounts payable to enable them to determine that, in general, they bear evidence of verification and approval with supporting documents such as purchase orders, vendor's invoices, receiving reports, transportation bills, contracts and other documents where necessary. The auditor shall also be satisfied that the claims were charged against the proper departmental appropriations and that funds were available at the date the purchase was made. 2. Bonded Debt The auditor shall examine the amount of bonded debt of the city and the outstanding debt determined by the auditor should be reconciled to the accounting records of the city by fund and amount outstanding on June 30. 3. Reserves for Uncompleted Purchase Orders and Encumbrances The auditor shall examine documents supporting reserves for uncompleted purchase orders and encumbrances to determine that such reserves are adequate and properly recorded. 4. Other Liabilities and Deferred Credits The auditor shall be satisfied as to the fairness of the accounts representing other liabilities and deferred credits. F. Fund Balances The auditor shall examine revenues and expenditures by funds and analyze the changes in fund balances for the financial statement of each fund in the audit report. G. Single Audit Act The independent auditor shall perform a financial and compliance audit under the Single Audit Act of 1984. The audit shall be made in accordance with the standards for 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 6 j,~)-{ "p Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, and the provisions of the U.S. Office of Management and Budget (OMB) Circular A-128, Audits of state and Local Governments. Chula vista's cognizant agency is the U. S. Department of Housing and Urban Development (HUD). SCHEDULE A. Date for Commencement of Consultant Services: (x) Same as Effective Date of Agreement ( ) Other: B. Dates or Time Limits for Delivery of Deliverables: Deliverable No.1: city Financial Statements - Nov. 15 Deliverable No.2: RDA Financial Statements - Oct. 31 Deliverable No.3: single Audit Report - Nov. 30 Deliverable No.4: BCT Financial Statements - Nov. 30 C. Date for completion of all Consultant services: 9. Insurance Requirements: (x) statutory Worker's Compensation Insurance (x) Employer's Liability Insurance coverage: $1,000,000. ( ), Commercial General Liability Insurance: $1,000,000. () Errors and omissions insurance: None Required (included in Commercial General Liability coverage). (x) Errors and omissions Insurance: $250,000 (not included in commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: A. The city will prepare the following statements and schedules for the auditor. Additional statements or schedules may be prepared if mutually agreed upon in advance. General purpose Financial statements 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 7 /;-,25 ..,,\ Cash and Investments Cash with Fiscal Age n tiT r u s tee Transactions Operating Transfersl Residual Equity Transfers GFAAG summary of Transactions GLTDAG Summary Transactions Budget Transfers TOT Monthly Revenue by Source Accounts Receivable Accounts Payable Advances Receivable & Payable between Funds Reconciliation of General Fund & RDA Fund Balances PERS summary of Covered Payroll and Contributions of Interest Income detail Arbitrage Calculations Compensated Absences Bank Reconciliation Property Tax Schedule Loans Receivable & Payable & single Audit Schedule of Federal Financial Assistance (SFFA) Redevelopment Agency Balance Sheets Statement of Revenues and Expenditures Loans Receivable & Payable Advances Receivable & Payable between Funds B. Work Area, Telephones, Photocopying and FAX Machines The City will provide the space, desks and chairs. provided with access to a machine and FAX machine. auditor with reasonable work The auditor will also be telephone line, photocopying Long Distance telephone andlor FAX communications will be charged to the auditor 11. Compensation: A. (x) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant for the fiscal year 1994-95 audit as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: single Fixed Fee Amount: $39,000, payable as follows: 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement page 8 t.-- .2v ~ Milestone or Event or Deliverable city Financial statements RDA Financial statements single Audit Report BCT Financial statement Housing compilation Report Amount or Percent of Fixed Fee $23,000 $ 6,500 $ 4,000 $ 3,500 $ 2,000 For each fiscal year thereafter, including any option years, the compensation amount shall be increased by the lessor of the increase in the Consumer Price Index - All Urban (Dec. to Dec.) or 5 percent. 2PTY9-A.wp November 2, 1993 Exhibit A to standard Form Agreement Page 9 /"":27 ~~ Rate Schedulel Category of Employee of Consultant Name Hourly Rate Partner $110 $ 90 $ 60 $ 55 $ 20 Manager Senior Accountant Clerical Assistant Accountant ( by 6% for services , if delay in providing ) Hourly rates may increase rendered after [month], 19 services is caused by city. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes all costs. ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) Cost or Rate Reports, not to exceed $ Copies, not to exceed $ Travel, not to exceed $ Printing, not to exceed $ Postage, not to exceed $ : Delivery, not to exceed $ : Long Distance Telephone Charges, not to exceed $ . Other Actual Identifiable Direct , not to exceed $ , not to exceed $ . . . . . . Costs: . . 1. This section should be completed in all cases--if the main compensation scheme is a "time and materials arrangement" or for the purposes of requiring Additional Services. 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 10 jp-,2.Y 4f\ 13. Contract Administrators: City: Robert W. Powell, City Finance Director Consultant: patricia Rives, Partner, Moreland & Associates 14. Liquidated Damages Rate: ( ) $ per day. ( ) Other: 15. statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer ( ) Category No. lo 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, permi t or licensing authority of the department. ( ) Category No. and sources development, sale of real 4. Investments in business entities of income which engage in land construction or the acquisition or 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: 2PTY9-A.wp November 2, 1993 Exhibit A to standard Form Agreement Page 11 /,~;z/ ~ 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: 18. Bill processing: A. Consultant's Billing to be submitted for the following period of time: (x) Monthly ( ) Quarterly ( ) other: B. Day of the Period for submission of Consultant's Billing: (x) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. city's Account Number: Various 19. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ (x) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (x) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (x) Completion of All Consultant Services 2PTY9-A.wp November 2, 1993 Exhibit A to Standard Form Agreement Page 12 & -317 r ~" 2PTY9-A.wp November 2, 1993 ( ) Other: Exhibit A to Standard Form Agreement Page 13 t-y/ /&-32, Filipovitch & Blush Certified Public Accountants Attn: Stan Blush Suite D-2 325 Carlsbad Village Drive Carlsbad, CA 92008 (619) 434-3196 Brownell & Duffey Certified Public Accountants Suite 314 2204 E1 Camino Real Oceanside CA 92054 (619) 967-9933 McGladrey & Pullen Suite 1150 3111 Camino del Rio No San Diego, CA 92108 (619)280-3022 Thomas, Bigbie & Smith* 4201 Brockton Avenue, Suite 100 Riverside, Ca. 92501 (909)682-4851 Fax (909)682-6569 Corbin & Werrtz 4370 la Jolla Village Dr Ste 600 San Diego, Ca 92122 (619) 546-4880 Fax (619)546-1405 R. Navarro & Associates, Inc. 2831 Camino del Rio So. San Diego, Ca 92108 (619)298-8193 Fax 294-4579 Caporicci & Larson Three Hutton Centre Drive Ste 630 Santa Ana, Ca 92707 (714)436-0927 (714)436-0716 Fax Moss, Levy & Hartzheim* 9465 Wilshire Blvd, Ste 915 Beverly Hills, Ca 90212 (310)275-3883 (310)275-0143 Fax Goodsell, Morris & Lofgren 9605 Scranton Rd, Ste 400 San Diego, Ca 92121 Attn: Roger S. Gordon 455-0802 455-D898Fax Martinez, Armando & Co 365 Church Ave Chula Vista, CA 91910 619-427-1981 Vavrinek, Trine, Day & Co* 8270 Aspen St Rancho Cucamonga, Ca 91729-4407 (909)466-4410 (909)466-4431 FAx Strong & Veleker, CPA's 345 F ST Chula Vista, Ca 91910 (619)427-6304 Leonard C. Sonnenberg, CPA 7490 Opportunity Road Sutie, 201 San Diego, Ca 92111 (619)571-3833 (800)464-4462(HOA) (800)303-4329(FAX) * Audit Firms that Responded ** Audit Firms Selected for Interview Attachment "A" ~ -3 J ) (;-3<+ COUNCIL AGENDA STATEMENT Item 7 Meeting Date 5/23/95 ITEM TITLE: Resolution /79tfJe Approving an agreement with Berryman & Henigar for apportionment services for existing assessment districts and authorizing the Mayor to execute said agreement SUBMITTED BY: Director of Public Works~r Director of Finance r.f An" REVIEWED BY: City Manager~ ~~} (4/5ths Vote: Yes_NoX) The purpose of the proposed agreement is to retain the services of Berryman & Henigar to perform the respreading of assessments on existing City's assessment districts and prepare the "Annual Collection Report" to be submitted to the County for inclusion in the property tax bilL The agreement is for a term of five years. This action will ensure that the City's fiduciary responsibility to the bond holders is fulfilled by providing required apportionment and collection services as delineated in the Streets and Highways Code. RECOMMENDATION: That Council approve the resolution approving the agreement with Berryman & Henigar and authorize the expenditure of funds from assessment district fees for the payment of these services. . BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: During the last decade, the City has formed twelve (12) assessment districts under the Municipal Improvement Act of 1913 to provide fmancing for the construction of public infrastructure for new developments through the issuance of assessment district bonds (see Attachment A). The repayment of the bonds is made from assessment installments collected from the property owners in conjunction with their property taxes. During buildout, the original assessments placed on the properties within the district need to be respread annually to include new parcels and reflect any changes to existing parcels. In addition, an annual assessment collection report shall be prepared and provided to the County for inclusion in the property tax bill. During the last five years, the City retained the firm Willdan Associates to perform these activities. The contract with Willdan expired in 1994; therefore, in accordance with City policy, staff requested proposals from qualified firms to perform these activities. Staff received five (5) proposals and determined that Berryman & Henigar is the most qualified and cost effective of the five firms responding the invitation. The bonds that were used to fmance the construction of improvements were issued pursuant to the Improvement Bond Act of 1915. The repayment of these bonds is typically made from assessment installments collected from the property owners with their property tax bill over a period of twenty to twenty-five years. In addition to the principal and interest, the code allows the collection of an "annual administrative fee" (currently $16/parcel maximum) from every parcel within an assessment district to cover the cost of the administration of the district. '/-/ ~ Page 2, Item 7 Meeting Date 5/23/95 In addition to the annual administrative fee, the developers deposit with the City an "apportionment fee" (currently $40/parcel) before approval of a map creating new parcels or any other approval changing the configuration of a parcel of land subject to an assessment. Tonight's action authorizes the consultants to perform apportionment services for the City for Tax Years 1995-1996 through 1999-2000 as delineated in Section 8730 of the Streets and Highway Code. The Code states that when a parcel of land upon which there is an unpaid assessment divides, the original assessment must be segregated and apportioned in accordance with the benefits to the several pieces of the original lot. The consultant will do specific filings with the County, prepare annual reports, assessment diagrams, annual collections tapes spreadsheets and notify bond holders and underwriters of the apportionments. The annual collection report shall be submitted to the County Auditor-Controller before August 10 of each year for inclusion in the property tax bill. Consultant Selection Process Staff reviewed the methods of accomplishing the work, including performing the activities in- house and using a consultant. As noted on Attachment B "Cost Comparison Worksheets - Contract Consultants vs. In-house staff," the City does not have the staff, nor the expertise to undertake these duties entirely. These activities are concentrated during the period of May to July of every year. During this time, staff must also carry out the time-consuming activities of preparing the annual collection report for the open space districts. It wouldn't be cost effective to hire and train additional personnel to handle this peak in the workload. Having a consultant performing these apportionment and collection activities will allow the City to meet its covenants in a timely and efficient manner. Public Works Engineering Division staff followed the City Municipal Code Section 2.56.23 in the Consultant selection process. As required, a Request for Proposal (RFP) was prepared and a notice was published in the Star News, San Diego Union, and the San Diego Daily Transcript. Five firms responded to the invitation, requested the RFP documents and submitted their proposals. The RFP included a description of the scope of work and the time frames for completion. Each firm was asked to provide: 1) a statement on their general familiarity with assessment districts especially the Improvement Bond Act of 1915; 2) capacity, resources, and specialized equipment or expertise to perform the work; 3) names and qualifications of all key personnel to be used in the project, including any sub-consultants; 4) past record of performance and references; 5) the location of the office where the work is to be performed; and 6) a cost estimate. The RFP also indicated that the City would rank the proposals based on the following criteria: 1. General familiarity with the assessment districts 2. Specialized experience and equipment 3. Past record or performance (Reference Evaluation) 4. Evaluation of personnel qualifications, including sub-consultants if so indicated 5. Capacity and resources to perform the work 6. Proximity of office to San Diego County 7-.,.2 ~ Page 3, Item-L Meeting Date 5/23/95 Cost was not considered in ranking the firms at this stage of the process where only the qualifications were considered. The consultants were also give a copy of the City's standard two-party agreement. The following firms responded to the RFP: Consultant Location NBS/Lowry San Diego Berryman & Henigar San Diego Willdan Associates San Diego Municipal Financial Services (MFS) Temecula David Taussig & Associates Newport Beach The selection committee was appointed by the City Manager in accordance with the Municipal Code Section 2.56 and consisted of the following members: Susan Cole, Assistant Finance Director Shauna Stokes, Principal Management Assistant William Ullrich, Senior Civil Engineer Donna Snider, Civil Engineer Tom Adler, Engineering Technician The committee members were provided with individual copies of the proposals and each member was charged with rating the proposals in accordance with the evaluation criteria. Based on the information provided in the proposals, the Committee selected the first three firms listed above for the interview. Municipal Financial Services and David Taussig & Associates were not selected because they did not have the necessary engineering background. On April 25, 1995, the Committee interviewed the three firms. At the conclusion of the interviews, the Committee ranked the consultant firms as follows: I The estimated cost is based on the reapportiorunent of assessment for 180 new parcels and preparation of the collection tape of 9,677 existing parcels. Additional services in the amount of $10,000 are also included. Estimated Costl Ranking Firm Tax Year 1995-96 1 Berryman & Henigar $17,350 2 NBS/Lowry $45,650 3 Willdan Associates $25,077 The fmal selection of Berryman & Henigar as the most qualified team for the job was based on: 1) cost; 2) better knowledge of the City's assessment districts; 3) strongest project team; and 4) excellent references. 7~3 ~~ Page 4, Item-L Meeting Date 5/23/95 The Agreement The proposed agreement with Berryman & Henigar uses the City's standard two-party agreement. Under this contract, they agree to perform the scope of work for a five year term as outlined in Exhibit A of the Agreement. This section is extremely precise in order to insure that all of the City requirements are included in the fee. The compensation schedule for Berryman & Henigar is as follows: . Apportionment Services - Consisting of the segregation of the original assessment and apportioning the original assessment among new parcels. Consultant shall be paid $22 per parcel. These services will be paid from the "apportionment deposit" ($40/parcel) placed by the developer before approval of a map creating new parcels or any other approval changing the configuration of any existing parcel. . Annual Collection Services - Consisting of the preparation and submittal of the tax roll to the County. Consultant shall be paid $0.35 per parcel identified in the Annual Collection Report. These services are being paid through the "annual administrative fee" ($16/parcel maximum) charged against each parcel on their tax bill to provide for the cost of administering the district. . Additional Services - In addition to providing the previous defined services, the contract authorizes the City Engineer to approve additional unforeseen services in an amount not to exceed $10,000 per year. Staff considers it necessary to include this provision in the agreement to be able to address unexpected work demands related with the apportionment/collection of the assessments, without having to go through the process of hiring a new consultant every year. For the current year, it is anticipated that the City will request the preparation of updated spreadsheets reflecting the new assessment information (assessment numbers, principal amount, etc.) of the Assessment Districts Nos. 85-2, 86-1, 87-1, and 88-2 currently being refmanced. The apportionment and . collection activities must be performed at the end of the fiscal year in a timely manner to meet the County' strict deadlines. During this period, the City does not have the staff to undertake any additional work. These services shall be provided on a "time and material" basis at the rates set forth in the "Schedule of Hourly Rates" in Attachment A of Exhibit A of the Agreement in an amount not to exceed $10,000 per year. Staff considers that $10,000 per year is a reasonable amount to set aside for unexpected services, though it seems high for 1995- 96 (estimated contract cost of $17,350) due to the exceptionally low building activity during the previous year. The annual contract cost for Willdan and Associates during the five years of their contract ranged between $25,000 and $65,000. The additional services would be paid from the annual administrative fee. The City Attorney has reviewed the contract and approved it as to form. FISCAL IMPACT: It is estimated that the 1995-96 cost for the services will be approximately $17,350. As mentioned above, the cost of the services will be covered by the 7-1 ~ Page 5, Item 7 Meeting Date 5/23/95 apportionment deposits and the annual administrative fee collected by the City. The cost of the seIVices for future years will mainly depend on the number of new parcels in the districts. Attachment A - City's Assessment Districts Attachment B - Cost Comparison - Consultant vs. In-House lDT:A Y-999 m:lhomelengincmagenda\bmynwl.1d1 7~5 /7-lt ~ RESOLUTION NO. /79tfJt7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH BERRYMAN & HENIGAR FOR APPORTIONMENT SERVICES FOR EXISTING ASSESSMENT DISTRICTS AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the purpose of the proposed agreement is to retain the services of Berryman & Henigar to perform the respreading of assessments on existing City's. assessment districts and prepare the "Annual Collection Report" to be submitted to the County for inclusion in the property tax bill; and WHEREAS, the agreement has provisions for yearly renewals through 1999 and will ensure that the city's fiduciary responsibility to the bond holders is fulfilled by providing required apportionment and collection services as delineated in the Streets and Highways Code. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve an Agreement with Berryman & Henigar for apportionment services for existing assessment districts, a copy of which is on file in the office of the city Clerk as Document No. (to be completed by the City Clerk in the final document). BE IT FURTHER RESOLVED that the expenditure of funds from assessment district fees for the payment of Berryman & Henigar's services is hereby authorized. BE IT FURTHER RESOLVED that the Mayor of the city of Chula vista is hereby authorized to execute said Agreement for and on behalf of the City of Chula vista. od~ :' ~J Presented by John P. Lippitt, Director of Public Works city c: \RS\BERRYMAN 7- 7 /7-g ~ Parties and Recital Page(s) Agreement between City of Chula Vista and Berryman & Henigar for Assessment District Apportionment Services This agreement ("Agreement"), dated for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1 is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, the City has formed assessment districts to provide funding for infrastructure under the Municipal Improvement Act of 1913; and, Whereas, Section 8730 of said Act requires that when a parcel of land upon which there is an unpaid assessment divides, the original assessment must be segregated and apportioned in accordance with the benefits to the several parts of the original lot; and, Whereas, the City is desirous of retaining a consultant to this end; and, Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 1 7-7 u...~ Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled " Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and 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. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defmed Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services (" Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. M:\... \LANDDEV\APconag.wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 2 7- / t1 ~~ E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approvat of the City: Statutory Worker's Compensation Insurance and Employer's liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in. the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage. (1) Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 3 7-// vb (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 4 /~/2 ~\,. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon )Ylalcing 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 I/rlmini~tration of this agreement. M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 5 7-/J ~ 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement sha1l result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant sha1l pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Admini~trator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph IS, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 6 '7 ;' J t-/ ~ B. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant sbal1 not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a fmancial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests. Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defmed Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph IS. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or M:\... \LANDDEV\APconag. wan November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 7 7-15 \\D\- Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. COns\l1tant$' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. 'Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 8 7~/~ ~~() In the event that the City Admini!:trator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement bas resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. 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 Consultant 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, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defmed Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12.. Ownership, Publication, Reproduction and Use of Material 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 Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the m~nnet and means of performing the services M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 9 7~J 7 ~\ required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Admini!ltrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. 16. Statement of Costs In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 10 7-/~ ~ B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 11 7-/ I 41J, Signature Page to Agreement between City of Chula Vista and [Name of Consultant] for IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,19_ City of Chula Vista by: Shirley Horton Mayor Attest: Beverly Authelet, City Clerk Approved as to form: Bruce M. Boogaard, City Attorney Dated: Berryman & Henigar By: Jeffrey M. Cooper Senior Vice President Exhibit List to Agreement (X) Exhibit A () Exhibit B M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 12 /',2 (J ~ct- Exhibit A to Agreement between City of Chula Vista and Berryman & Henigar 1. Effective Date of Agreement: 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: form] , a [insert business ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Berryman & Henigar 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 11590 W. Bernardo Court, Suite 100 San Diego, CA 92127 Voice Phone (619) 451-6100 Fax Phone (619) 451-2846 7. General Duties: . 7/,2 / Exhibit A 11193 Page 1 M:\... \LANDDEV\APconA. wau 4~ The Consultant shall provide assessment district apportionment services as requested by the City for the Tax Years commencing from 1995-1996 to 1999-2000. 8. Scope of Work and Schedule: A. Detailed Scope of Work: The Consultant will be responsible for the following tasks: 1. Upon direction of the City, the Consultant shall apportion the liens amongst the newly created parcels in the manner that would have been done had such a subdivision existed at the time of the confirmation of the District and fIle the segregation with the County Tax Auditor after the City reviews and authorizes such. 2. The consultant shall annnally prepare an amended assessment diagram for each assessment district which required apportionment. One mylar copy shall be provided to the City and one copy recorded with the County of San Diego for each amended assessment diagram. 3. The consultant shall prepare the annnal collections tape for all assessment districts to be submitted to the County Tax Auditor and provide four (4) printed copies to the City. 4. The Consultant shall update spreadsheets showing assessment number, APN, outstanding principal, assessment installment, County and City fees, interest and new outstanding principal for all parcels within assessment districts for annual submittal to the City in computer digital fIles compatible with Lotus or Quattropro software and a printed hard copy. 5. The consultant shall send to the original purchaser of the district bonds a notice of apportionment and a copy of the revised assessment diagram in accordance with the Improvement Bond Act of 1915 after the City reviews and authorizes such. 6. The consultant shall notify the underwriters by registered mail prior to the County's August deadline but after review of the information by the City. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: C. Dates or Time Limits for Delivery of Deliverables: Tax Year 1995-% August 1, 1995, Electronic Tape and Maps to the County, hard 7--..2 .2 Exhibit A 11193 Page 2 M:\... \LANDDEV\APconA. wau If copies and computer digital flIes of items 7 and 8 above to the City Future Tax Years August 1 of every year, Electronic Tape and maps to the County, hard copies and computer digital files of items in 7 and 8 above to the City. D. Date for completion of all Consultant services: Upon completion of all services 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. () Commercial General Liability Insurance: $1,000,000. () Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: A. List of the assessment districts the City would like us to administer for FY 1995196 (indicate mapping, spreadsheet updating andlor electronic tape preparation services) B. Copy of the Final Engineers Report and Final Official Statement for each assessment district C. Listing of parcels that have paid off their assessments (partially or fully) since the assessment districts were formed D. List of the bonds that have been called for each assessment district since the bonds were issued. The list should include the amount of bonds called and their corresponding ftscal year for each assessment district E. List of parcels requiring apportionment services for each assessment district for FY 1995/96 F. Name and address of the underwriter or other original purchaser of the bonds for each assessment district G. A sample copy of the City approved notice to underwriters or other original purchaser of bonds M:\... \LANDDEV\APconA. wau Exhibit A 11/93 Page 3 7-r7) ~1 H. A hard copy of the refunding report and diagram for assessment district nos. 85- 2, 86-1, 87-1, 88-2 when completed. Also, a copy of the refunding database in electrical format I. A hard copy of last years database and diagrams for each assessment district. Also, a copy of the databases and diagrams in electronic format for each assessment district J. An electronic listing of delinquency charges for each assessment district to be assessed for FY 1995/96. 11. Compensation: A. ( ) Single Fixed Fee Arrangement. For performance of all of the DefIned Services by Consultant as herein required, City shall pay a single fIxed fee in the amounts and at the times or tnilestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the DefIned Services by Consultant as are separately identifIed below, City shall pay the fIxed fee associated with each phase of Services, in the amounts and at the times or tnilestones or Deliverables set forth . Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase 1. 2. 3. Fee for Said Phase $ $ $ C. () Hourly Rate Arrangement For performance of the DefIned Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said additional Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: 7/;2. t/ Exhibit A 11/93 Page 4 ~</ M:\... \LANDDEV\APconA. wau (1) () Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) () Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to (" Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee of Consultant Name Hourly Rate () Hourly rates may increase by 6% for services rendered after [month], 1995, if delay in providing services is caused by City. (3) (X) Additional Services Upon Request At any time during the term of this agreement the City Engineer may request the Consultant to perform additional services. The Consultant shall perform the same on a "time and material" basis at the rates set forth in the "Schedule of Hourly Rates" of Attachment A of Exhibit A to this agreement, in an amount not to exceed $10,000 per year. (0). (X) Other, Piecemeal Work shall be paid on a per parcel basis with all costs, materials and labor included in said unit cost. 7~,l/ Exhibit A 11193 Page 5 M:\... \LANDDEV\APconA. wau 1ft Task Fee for Said Task 1. 2. 3. Mapping Spreadsheet Updating Electronic Tape Preparation $21.00/Parcel $1.00/Parcel $O.35/Parcel The mapping and spreadsheet updating fees apply only to new parcels. The tape preparation fee applies to the total parcel count. The fee for services performed after December 31, 1995 shall be increased by the same percentage increase in the Consumer Price Index, San Diego all urban consumers index, as of January 1st of each year. 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs. Cost or Rate ( ) Reports, not to exceed $ ( ) Copies, not to exceed $ ( ) Travel, not to exceed $ ( ) Printing, not to exceed $ ( ) Postage, not to exceed $ ( ) Delivery, not to exceed $ ( ) Long Distance Telephone Charges, not to exceed $ ( ) Other Actual IdentifIable Direct Costs: , not to exceed $ , not to exceed $ 13. Contract Administrators: City: Donna Snider, City of Chula Vista Department of Public Works Engineering Department 276 Fourth Ave Chula Vista, CA 91910 (619) 691-5266 Consultant: Joe Francisco, Berryman & Henigar 11590 W. Bernardo Court, Suite 100 7-.;L (" Exhibit A 11/93 Page 6 lP . M:\... \LANDDEV\APconA. wau San Diego, CA 92127 (619) 451-6100 14. Liquidated Damages Rate: ( ) $_ per day. (X) Other: None 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer () Category No. 1. Investments and sources of income. () Category No.2. Interests in real property. () Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. () Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. () Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. (X) List "Consultant Associates" interests in real property within 2 radia1 miles of Project Property, if any: Mark Webb 5323 Robinwood Road Chula Vista, CA 91902 7~..2 7 Exhibit A ll/93 Page 7 M:\... \LANDDEV\APconA. wau lil 16. () Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: 18. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (X) Other: At completion of work B. Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month (X) Other: At completion of work C. City's Account Number: 7- ;Lr Exhibit A 11/93 Page 8 M:\... \LANDDEV\APconA. wau lei 19. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ () Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: _ % ( ) Retention Amount: $ Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: 7~..2 7 Exhibit A 11/93 Page 9 M:\... \LANDDEV\APconA. wau ~~ Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such . claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. . Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfmished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions M:\... \LANDDEV\APconag. wau November 2, 1993 Standard Form Two Party Agreement (Fourth Revision) Page 8 7~ ;If) v~ ATTACHMENT A BERRYMAN & HENIGAR SCHEDULE OF HOURLY RATES PROFESSIONAL PERSONNEL: CLASSIFICATION Expcn Testimony Senior Principal Consultant Principal Consultant Principal Engineer Senior Associate Associate Senior Engineer Engineer III Engineer II Engineer I Senior Specialist Specialist III Specialist II Specialist I Planner II Planner I Senior Designer Designer Senior Draftsperson Draftsperson Engineering Assistant Plan Checker IV Plan Checker III Plan Checker II Plan Checker I Technician VI Technician V Technician IV Technician III Technician II EQUIPMENT: TYPE HOURLY RATE 185.00 185.00 146.00 135.00 113.00 103.00 103.00 92.00 81.00 70.00 103.00 92.00 81.00 70.00 81.00 70.00 87.00 70.00 60.00 48.00 60.00 92.00 81.00 76.00 70.00 76.00 65.00 55.00 46.00 39.00 HOURLY RATE CLASSIFICATION Technician I Principal I JlMscape Architect Senior I JlM.",pe Architect Landscape Architect Associate Landscape Architect Assistant , JlMS"'pe Architect Licensed Land Surveyor Supervising Land Surveyor 2-Person Survey Crew 3-Person Survey Crew Senior Survey Analyst Survey Analyst Senior Right-of-Way Agem Right-of-Way Agent Assistant Right-of-Way Agem Senior Inspector Inspector Senior Comract Administrator Contract Administrator Nuclear Gauge &. Operator Building Official Senior Programmer Programmer Cadd Designer Cadd Operator II Cadd Operator I Word Processor III Word Processor II Word Processor 1 Clerical HOURLY RATE 35.00 135.00 103.00 98.00 92.00 70.00 87.00 81.00 163.00 198.00 81.00 70.00 92.00 70.00 55.00 70.00 60.00 71.00 61.00 48.00 94.00 76.00 60.00 81.00 70.00 60.00 60.00 48.00 39.00 33.00 Dynaflect 125.00 Inroads CADD Design 24.00 Microstation CADD Drafting 12.00 Plotter 11.00 Out-of-pocket expenses (bluepriming. reproduction. and printing) will be invoiced at cost plus 15 %. A 15 % fee for administration. coordination and handling will be added to subcontracted services. Mileage will be invoiced at SQ.36/mi1e. This Scbedule of Hourly Rates is effective as of April 1. 1995. Rates will be adjusted annually after that date based on the Consumer Price Indelf described in Exhibit A, Parragraph !leD). 7~JI11-3G tb ATTACHMENT A Current Assessment Districts within the City of Chula Vista Assessment Original District Principal. No. Name Parcels (MilS) Type 85.1 Las Flores 160 1.6 Construction 85-2 Eastlake 1 2,794 S7.5 Construction 86-1 Eastlake 1 (Residential) 1,818 5 Acquisition 87-1 East H Street 1,996 7 Acquisition 88-1 Olay Lakes Road, Phase 1 24 7.5 Acquisition 88-2 Otay Lakes Road, Rancho Del Rey 1,301 7.5 Acquisition 90-1 Salt Creek 1 278 5 Acquisition 90-2 Otay Valley Road 102 5.5 Construction 90-3 Eastlake Greens 888 21.5 Acquisition 91-1 Telegraph Canyon Road, Phase 2 4 6.5 Acquisition 92-2 Otay Valley Road Auto Park 3 2 Acquisition 94-1 Eastlake Greens 11 309 7.9 Acquisition Total 9,677 84.5 Mil$ 7-'3) /7-3Y \tt ATTACHMENT B COST COMPARISON WORKSHEETS CONTRACT CONSULTANTS VS. IN-HOUSE STAFF The following forms are to be used for comparisons of the cost of hiring consultants to the cost of using in-house staff. Please answer the following questions and complete the attached Cost Comparison Worksheet. If you have any questions regarding these forms, please contact the Revenue Manager. GENERAL: 1. Describe the task(s) to be performed. The scope of work of the contract consists of the following tasks: A. Upon direction of the City, the Consultant shall apportion the liens amongst the newly created parcels in the manner that would have been done had such a subdivision existed at the time of the confirmation of the District and file the segregation with the County Tax Auditor after the City reviews and authorizes such. B. The consultant shall annually prepare an amended assessment diagram for each assessment district which required apportionment. One mylar copy shall be provided to the City and one copy recorded with the County of San Diego for each amended assessment diagram. C. The consultant shall prepare the annual collections tape for all assessment districts to be submitted to the County Tax Auditor and provide four (4) printed copies to the City. D. The Consultant shall update spreadsheets showing assessment number, APN, outstanding principal, assessment installment, County and City fees, interest and new outstanding principal for all parcels within assessment districts for annual submittal to the City in computer digital files compatible with Lotus or Quattropro software and a printed hard copy. E. The consultant shall send to the original purchaser of the district bonds a notice of apportionment and a copy of the revised assessment diagram in accordance with the Improvement Bond Act of 1915 after the City reviews and authorizes such. F. The consultant shall notify the underwriters by registered mail prior to the County's August deadline but after review of the information by the City. 2. What is the expected duration of the project/task (number of weeks, months, etc.)? Approx. 3 months (May thru July) every year. The proposed contract has provisions for yearly renewals through 1999. WPC F:\home\engineer\agenda\portions.jef 7-3> Page 1 tZ\ 3. How frequently does the City need to do this project (times per month or year, times per development, etc.)? Once a year 4a. Are there any in-house employees who could perform the task? What classification of employee(s) ? Yes, the City has two Civil Engineers that could perform many of the tasks but not all. Auto Cad (drafting) work can be performed by a Technician II. 4b. If there are such employees. why shouldn't they be utilized for this project? Those employees have all the work they can handle during the May thru July time frame preparing the annual open space reports and working on several other activities (assessment district formation, administration, etc). One Civil Engineer is on loan to the assessment section while land development is slow. Once land development work increases one of the Civil Engineers will not be available to assist in the workload. 4c. If such employees would not be used due to workload, what work would be displaced if the task were to be performed in-house? The annual open space reports. These can not be displaced as they are required by law to be performed each year. The process must be complete by August in order to provide the tax collector with the required information on the open space districts. 4d. If workload is a factor, could staff of lower classification be hired to handle extra work so that staff of higher classification could concentrate their time on the project? Explain. This work is concentrated during the period May-July (same as the preparation of reports for open space districts). Staff does not consider cost- effective to hire and train new personnel to handle the workload peak. 5. Would the project take more or less time for in-house staff versus a consultant (e.g.. consultant has pre-prepared boiler plate materials, software. etc.)? City does not possess the expertise or staff to perform the entire range of activities required for the job. 6. Are there any qualitative reasons to choose either a consultant or in-house staff (e.g.. special expertise, knowledge of City operations)? Explain. Staff considers it necessary to retain a consultant to provide these services. Although staff has performed as assessment engineers for two districts, those districts were standard. In many situations, the reapportionment requires detailed knowledge of the applicable laws. Staff has limited experience in some aspects of the work. Consultant 7-J~ Page 2 v'f>> WPC F:\home\engineer\agenda\portions.jef specialist in this type of work and has the personnel and resources to handle the job in a more efficient and timely manner. CONSULTANT AGREEMENT: 7. Base Contract Cost: The compensation schedule for the consultant is as follows: Apportionment Services Annual Collection Services Additional Services $22.00 per parcel $ 0.3 5 per parcel Annual amount not to exceed $10,000 For tax year 1995-96 the contract estimated cost is $17,350. The proposed contract has provisions for yearly renewals through 1999 and for adjustments to the consultants fee tied to the San Diego Consumer Price Index. The cost of the services for future years will mainly depend on the number of new parcels in the districts. 8. Applicable rates (including travel, word processing, hourly or daily charges, clerical support, meeting attendance, sales tax, etc.), estimated units per rate, and resultant costs (e.g., jive trips from LA @ $50/trip = $250). The consultant's fees cover all work necessary to accomplish the job, as outlined in the scope of work, regardless of the hours required. 9. Method and Terms of Payment. Payment at work completion. 10. Performance guarantees (e.g., withholding of payment for unsatisfactory work, termination of contract, etc.). $250,000 in errors and omissions insurance. 11. 1s consultant licensed to do business in the City? Yes. Note: If a draft agreement is available, please attach a copy. Agreement will be based upon the City's Standard Two-Party Agreement and on the Scope of Work called for in the RFP (copy attached). Page 3 ~ WPC F:\home\engincer\agenda\portions.jef 7-31 CITY OF CHULA VISTA CONSULTANT COST COMPARISON WORKSHEET CONSULTANT COST IN-HOUSE COST Base Contract Cost $17,350 Full-Time Equivalent N/A(I) (1995-96) Employee Hourly Wage Consultant Hourly Rate N/A Estimated Actual Hours Estimated Actual Hours N/A Total Base Cost Additional Rates N/A (Aggregate Cost) Total Base Cost $17,350 FCR BASED COSTS* FCR BASED COSTS Contract Division Monitoring/Support Costs FCR Factor Subtotal Subtotal (Base + Support Costs) (Base x FCR Factor) OTHER OTHER Supplies, Furniture, and Supplies, Furniture, and Equipment Equipment Business License Tax Other Applicable Tax Other Applicable Tax TOTAL COST $17,350 N/A (1995-96) see note (I) (1) Currently, the City does not have the expertise or staff to carry out the entire range of activities required for this job. WPC F:\home\engineer\agenda\portions.jef 7- ;; 15 Page 4 <\1) COUNCIL AGENDA STATEMENT Item f[" Meeting Date 5/23/95 ITEM TITLE: Resolution / ? 9 tJJ / Authorizing issuance of bonds and approving forms of Bond Indenture, Security Enhancement Agreement, Preliminary Official Statement and Second Amendment to Acquisition\Financing Agreement for Assessment District No. 94-1 (Eastlake Greens IT) SUBMITTED BY: Director of Public Works REVIEWED BY: City ManagerJ~ ~. .-A (4/5ths Vote: Yes_NoX) The Acquisition/Financing agreement for AsUssment District No. 94-1 was approved by Council on May 10, 1994. Later, on April 25, 1995 by Resolution No. 17877 Council established Assessment District No. 94-1 (see Exhibit A) and levied assessments for the acquisition of certain infrastructure serving the south portion of the Eastlake Greens development pursuant to the Municipal Improvement Act of 1913. Tonight's action will continue the legislative proceedings for Assessment District No. 94-1 (AD 94- 1). RECOMMENDATION: That Council: I) Adopt the resolution authorizing issuance of bonds and approving forms of Bond Indenture, Security Enhancement Agreement, Preliminary Official Statement and Second Amendment to Acquisition\Financing Agreement for AD 94-1; and 2) Direct staff to bring to Council, prior to delivery of AD 94-1 bonds, a procedure to ensure compliance with the Council Policy requiring that the aggregate of all County taxes, Mello-Roos school taxes, and assessments installments does not exceed 2% of the sale price of the residential units. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The public improvements to be financed through AD 94-1 include backbone public facilities such as storm drain, sewer, water, reclaimed water, utilities, landscaping, grading, and street surface improvements serving the whole Greens II. A complete list of the proposed improvements is presented in Attachment A. PrODOSed Assessments The estimated total amount to be assessed through AD 94-1 is $7,834,491 of which $5,915,064 are for grading and improvements, $937,109 for incidental costs (design, plan check, City staff and consultants' cost) and $1,096,829 for bond issuance costs (reserve, underwriter discount, and capitalized interest). The AD 94-1 confirmed assessment on the proposed residential units of the Greens IT development range from $2,813 to $10,754 per unit (see Attachment B). fS--/ <\\ Page 2, Item Meeting Date 5/23/95 ~ The properties in the Greens II are subject to prior assessments placed by the existing Assessment Districts No. 90-3 and 91-1. Assessment District No. 90-3 funded the construction of major infrastructure serving the whole Eastlake Development (Greens, Trails, Woods, Vistas, Business Center II and OTC). Assessment District No. 91-1 levied only TDIF assessments on the Eastlake Greens South properties. Assessment District 94-1 would finance the construction of backbone facilities providing full service to the Greens II area and the improvement of a portion Hunte Parkway and East Orange Avenue (TDIF facilities). The overall assessments (all three districts) range from $7,629 to $10,754. Attachment B shows the total assessments placed on the proposed residential units of the Greens II. The proposed total assessments are within all criteria set forth by Council policy as follows: Lien Ratio. City policy requires that the total lien placed on a property shall not exceed one-third (1/3) of the value of the property as determined by an independent appraiser retained by the City. This is referred as a 3: I Lien Ratio. The analysis is based on the value of the property at bond sale; no subsequent fluctuations in property values are taken into consideration. An appraisal of the property has been ordered and is expected to be ready by June I, 1995. It is anticipated that certain of the parcels in AD 94-1 will not meet this test based on appraised value. As an alternative to meeting the test based on appraised value, the City has allowed in the past the lien ratio test to be met by the developer posting letters of credit. The criteria for these letters of credit is as follows: I. They must be provided by a major bank acceptable to the City. Eastlake proposes to provide any letter of credit with Bank of America as issuer. 2. The letters of credit must be issued without condition. In other words, a call from the City to the bank demanding cash would be honored without any reason needing to be given to the bank. If the City were incorrect in making the demand, it would be between Eastlake and the City to settle at some later date. The cash would be in the hands of the City. 3. The letters of credit must be .. evergreen". Evergreen refers to a letter of credit issued for example, for one year. On the eleventh month, the bank either commits to another twelve month period or the City requires that the cash be paid over. In other words, the City either is the holder of a letter of credit or receives cash from the bank. 4. The letters of credit must be in an amount sufficient to reduce the debt on property with a lien ratio under 3: I so the 3: I test is met. As an example, assume an assessment of $10,000 and an appraised value of $24,000. A letter of credit of $2,000 would be required. If such property becomes delinquent in tax and assessments payment or the letter of credit is not renewed, the City would demand the payment of $2,000 and use the funds to reduce the debt to $8,000, thereby meeting the 3: I test. Prior to delivery of AD 94-1 bonds, all necessary letters of credit would be delivered to the City, or else the bonds will not be delivered. As mentioned before, it is expected than an appraisal will be finished on or about June I, 1995, so that Eastlake will have approximately three weeks to arrange for the delivery. Eastlake is aware of this timing. 8".;2.. /l'- Page 3, Item 1 Meeting Date 5/23/95 Maximum Tax. City policy requires that the combination of regular County taxes, Mello-Roos school taxes, and assessment insta1lments does not exceed 2 % of the market value of the residential units. This is known as the 2 % Maximum Tax. The analysis considers all assessments/taxes in place at the time of the house sale. It does not apply if additional school taxes or new assessments are put on the property by other agencies after the sale of the house. A total of 1,460 dwelling units are planned to be developed in the Greens II at a pace set by the future housing market conditions. In order to ensure that the 2 % test is met, it is necessary to provide a mechanism allowing staff to determine compliance with the 2 % criterion as the houses are sold. Staff is currently discussing with Eastlake different alternatives for said mechanism and is proposing to bring to Council a report identifying a procedure to ensure compliance with the 2 % Maximum Tax criterion prior to delivery of the AD 94-1 bonds, scheduled for June 29, 1995. Resolutions . Through the adoption of the proposed resolution, the following will be accomplished: Approval of the form of Bond Indenture, which establishes all formal terms and conditions relating to the issuance of bonds and subsequent administration. After the successful bidder has been determined, the Bond Indenture will be executed on behalf of the City by the Director of Finance. Authorization for the Financial Advisor to solicit sealed bids for the sale of the bonds, such bids to be opened on June 20th and sale of bonds to be awarded by City Council on that evening. Approval of the form of Security Enhancement Agreement by and between the City and Eastlake Development Company to require additional security in the event that the lien to value ratio for any properties is below 3: 1. The agreement is to be approved in substantially fmal form. The resolution authorizes the City Manager to approve changes deemed to be in the best interest of the City. Authorization for the preparation of a Preliminary Official Statement (POS) pertaining to the issuance and sale of bOnds. The Financial Consultant is also authorized to distribute copies of the POS to persons who may be interested in the purchase of the bonds. The final OffIcial Statement will be approved on behalf of the City by the City Manager. Approval of the form of a Second Amendment to the Acquisition\Financing Agreement previously entered into between the City and Eastlake. Eastlake has requested the City that a portion of the assessments levied on those parcels identified as Assessments Numbers (ASSMT#) 3 and 143 be considered prepaid during the 30-day payoff period which expires on May 29, 1995. The amount of such prepayment is $83,871.54 on ASSMT# 3 and $140,945.96 on ASSMT# 143. In lieu of making such prepayments in cash, the proposed amendment allows the developer to prepay such amounts by accepting an equal reduction in the acquisition payments to which developer is entitled under the Acquisition\Financing Agreement. This amendment is to be approved in substantially fmal form. The resolution authorizes the City Manager to approve changes to the Amendment deemed to be in the best interest of the City. (J'3 <\? Page 4, Item If" Meeting Date 5/23/95 Future Actions. Bid openings are scheduled for June 20, 1995 and the bond sale closing for June 29, 1995. FISCAL IMPACT: Eastlake Development Company will pay all costs associated with the formation of the district and will be reimbursed once bonds have been sold. The City will receive the benefit of full cost recovery for staff cost (estimated at $78,000) to be funded by the district. In accordance with Section 15 of the Acquisition/Financing agreement for AD 94-1 Eastlake shall pay to the City an origination charge of 1.5% of the confIrmed assessments ($117,517) or such other percentage as may be established by Council and be in effect at the time of the public hearing for AD 94-1. On April 25, 1995 and prior to the AD 94-1 hearing, Council opened a public hearing on the amount of the origination charge (currently 1 % of the confIrmed assessment) to be collected from developers for the use of public fmancing. In response to the request of Eastlake and the Baldwin Company, Council decided to continue the hearing and postponed the adoption of the revised origination charge to a future date. At the hearing, Eastlake submitted a letter in which they agree to pay the amount of the origination charge which Council fma11y approves. It is anticipated that this issue will be brought to Council before the AD 94-1 bond sale closing scheduled for June 29, 1995. The amount of the origination charge to be paid to the City at the current 1 % rate is $78,345 and at the 1.5% proposed for Eastlake in this Assessment District is $117,517. Attachment: A B Description of Improvements Confinned Assessments Exhibit A District Diagram WPC M:\home\engincer\agenda\report3.941 Ldt\A Y-092 o-i <t\ RESOLUTION NO. /79"1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, AUTHORIZING ISSUANCE OF BONDS AND APPROVING FORMS OF BOND INDENTURE, SECURITY ENHANCEMENT AGREEMENT, PRELIMINARY OFFICIAL STATEMENT AND SECOND AMENDMENT TO ACQUISITIONIFINANCING AGREEMENT FOR ASSESSMENT DISTRICT NO. 94-1 (EASTLAKE GREENS - PHASE II) WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, is conducting proceedings for the acquisition of certain public improvements in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of Califomia, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 94-1 (EASTLAKE GREENS - PHASE II) (hereinafter referred to as the "Assessment District"); and, WHEREAS, this legislative body has previously declared in its Resolution of Intention to issue bonds to finance the acquisition of said improvements, said bonds to issue pursuant to the terms and provisions of the "improvement Bond Act of 1915", being Division 10 of said Code; and, WHEREAS, at this time this legislative body is desirous to set forth terms and conditions relating to the authorization, issuance and administration of said bonds; and, WHEREAS, there has been presented, considered and ready for approval the form of a bond indenture setting forth terms and conditions relating to the issuance and sale of bonds; and, WHEREAS, there has been presented, considered and ready for approval the form of a Security Enhancement Agreement (the "Security Enhancement Agreement")by and between the City of Chula Vista (the "City") and EastLake Development Company ("EastLake") to provide additional security for the bonds; and, WHEREAS, this legislative body hereby determines that the bonds shall be sold at a public wale in an aggregate principal amount equal to unpaid assassments of the Assessment District in the amount as shown and set forth in a Certificate of Paid and Unpaid Assessments as certified by and to be on file with the Finance Director, and for partiCUlars as to the amount of said unpaid assessments, said Certificate and list shall control and govem; and, WHEREAS, there has been presented, considered and ready for approval the form a the Second Amendment to Acquisition/Financing Agreement by and between the City and EastLake (the "Second Amendment"). NOW, THEREFORE, IT is HEREBY RESOLVED AS FOLLOWS: RECITALS 1. That the above recitals are true and correct. g~f <\~ Resolution No. Page Two BOND AUTHORIZATION 2. That this legislative body does authorize the issuance of limited obligation improvement bonds in an aggregate principal amount not to exceed the aggregate principal amount of the unpaid assessments pursuant to the terms and provisions of the 'Improvement Bond Act of 1915', being Division 10 of the Streets and Highways Code of the State of California, and also pursuant to the specific terms and conditions as set forth in the Bond Indenture presented herein. BOND INDENTURE 3. That the Bond Indenture Is approved substantially in the form presented herein. The Finance Director is hereby authorized and directed for and on behalf of the City to execute the Bond Indenture with such additions thereto or changes therein as may be approved by the Finance Director, subject to the review of Bond Counsel, such approval by the Finance Director to be conclusively evidenced by the execution and delivery thereof. A copy of said Bond Indenture shall be kept on file with the transcript of these proceedings and open for public inspection. SEALED BIDS 4. That this legislative body does hereby call for sealed bids through a competitive sale for bonds to be issued to represent unpaid assessments within the Assessment District, and the designated Financial Consultant, KADIE-JENSEN, JOHNSON & BODNAR, is hereby directed and authorized to proceed at this time to call for sealed bids and solicit proposals for the sale of bonds to represent all unpaid assessments on privately owned property within the boundaries of the Assessment District. INTEREST RATE 5. That the interest rate on said bonds shall not exceed the current legal maximum interest rate of 12% per annum. SECURITY ENHANCEMENT AGREEMENT 6. The form of Security Enhancement Agreement presented to this legislative body is hereby approved in substantially the form submitted at this meeting and the City Manager is directed to execute and deliver the Agreement, a copy of which is on file in the Office of the City Clerk, in substantially the form presented to this meeting, with such changes as the City Manager may approve, such approval to the conclusively evidenced by the execution and delivery thereof. A copy of the final form of such agreement shall be kept on file In the office of the City Clerk and remain available for public inspection. 'if--;':' 14 Resolution No. Page Three PREUMINARY OFFICIAL STATEMENT 7. The City Manager and other officers of the City and their authorized representatives are each hereby directed to prepare or cause to be prepared a preliminary official statement (the .Preliminary Official Statement.) and a final official statement (the .Official Statement") relating to the Bonds. The Financial Consultant is authorized to distribute copies of the Preliminary Official Statement to persons who may be Interested in the purchase of the Bonds. Prior to the distribution of the Preliminary Official Statement, the City Manager of the City Is authorized to certify that the Preliminary Official Statement Is deemed final as of its date within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. The City Manager is hereby authorized and directed, for and In the name of the City, to execute the Official Statement with such revisions from the Preliminary Official Statement as are reasonable and customary to describe accurately the Bonds and matters contained in the Bond Indenture. Such approval shall be evidenced by the execution thereof. FINAL ASSESSMENTS 8. That the Certificate of Paid and Unpaid Assessments, as certified by the Finance Director, shall remain on file In that office and be open for public inspection for all particulars as it relates to the amount of unpaid assessments to secure bonds for this Assessment District. SUPERIOR COURT FORECLOSURE 9. This legislative body does further specifically covenant for the benefit of the bondholders to commence and prosecute to completion foreclosure actions regarding delinquent installments of the assessments in the manner, within the time limits and pursuant to the terms and conditions as set forth In the Bond Indenture as submitted and approved through the adoption of this Resolution. OTHER ACTS 10. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the bonds are hereby approved, confirmed and ratified, and the Finance Director and any and all other officers of the City are hereby authorized and directed, for and In the name and on behalf of the City, to do any and all things and take any and all actions relating to the execution and delivery of any and all certificates, requisitions, agreements and other documents, which the Finance Director may deem necessary or advisable In order to consummate the lawful issuance and delivery of the bonds in accordance with this resolution. 3'~? ,'\ Resolution No. Page Four SECOND AMENDMENT TO ACQUISITION/FINANCING AGREEMENT 11. The form of the Second Amendment, herewith submitted, is hereby approved substantially In the form submitted. The Mayor is hereby authorized to execute the final form of such amendment on behalf of the City. The City Manager, subject to the review of the City Attomey and Bond Counsel, Is authorized to approve changes in such amendment deemed to be in the best Interests of the City, such changes to be evidenced by the execution of such amendment A copy of the final form of such amendment shall be kept on file in the office of the City Clerk and remain available for public inspection. Presented by John P. Lippitt Public Works Director Bruce M. Boogaard City Attorney :r,25' ~ Resolution No. Page Five PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, Califomia, this day of , 1995, by the following vote: AYES: Council members: NOES: Councilmembers: ABSENT: Councilmembers: ABSTAIN: Councilmembers: Shirley A. Horton, Mayor ATTEST: Beverly A. Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, Califomia, do hereby certify that the foregoing Resolution No. was duly passed, approved, and adopted by the City Council of the City of Chula Vista, Califomia at a regular meeting held on the day of 1995. Executed this _ day of ,1995. Beverly A. Authelet, City Clerk 2'~I/t-ID n~ SECOND AMENDMENT TO ACQUISmONIFINANCING AGREEMENT TInS SECOND AMENDMENT TO ACQUISmON/FlNANCING AGREEMENT (the "Second Amendment") is made and entered into this day of , 1995 by and between the CITY OF CHULA VISTA, a charter city Org~ni7~ and validly existing under the Constitution and the laws of the State of California (the "City") and EASTLAKE DEVELOPMENT COMPANY ("Developer") to amend that certain AcquisitionIFinancing Agreement dated as of May 10, 1994 by and between the City and the Developer (the" Acquisition/Financing Agreement") as previously amended. WHEREAS, the City has formed of a special assessment district under the terms and conditions of the 1913 Act for the acquisition of certain public improvements, together with appurtenances and appurtenant work within the jurisdiction limits of the City, such special assessment district known and designated as ASSESSMENT DISTRICT NO. 94-1 (EASTLAKE GREENS IT); and WHEREAS, the City and the Developer entered into the Agreement to establish the terms and conditions pursuant to which the City would acquire the Improvements and issue limited obligation improvement bonds to finance the acquisition of the Improvements; and WHEREAS, the City and the Developer desire to amend the Agreement to provide that the Developer be permitted to prepay certain assessments by agreeing to accept a reduction in the Purchase Price (as defined in the Agreement) equal to the amount of such prepayment; and NOW, THEREFORE, IT IS MUTUAlLY AGREED between the respective parties as follows: SECTION 1. Recitals. That the above rec~ta1s are true and correct. SECTION 2. Amendment to Al!reelIlent. Section 8(c) of the Agreement is hereby amended to add the following additional paragraph at the end of such section: Developer has requested to partially prepay the assessments levied on those parcels within the Assessment District and identified as Assessment Nos. 3 and 143. The amount of such prepayment is $83,781.54 and $140,945.96 for each respective parcel (cumulatively, the "Aggregate Prepayment"). In lieu of making such prepayment in cash, Developer is prepaying such amounts by accepting a corresponding and equal reduction in the payments to which Developer is entitled hereinunder. Therefore, there shall be deducted from the first payment request and each subsequent payment request such amount which shall in aggregate equal the Aggregate Prepayment. ~u g'--J/ SECTION 3. Other Terms and Conditions of the AlITeel11ent. Except as expressly provided for in this Second Amendment, all other terms and conditions of the Agreement shall remain in full force and effect. SECTION 4. Countel3'arts. This Second Amendment may be executed in counterparts, each of which shall be deemed an original. EXECUTED by and between the parties hereto on the day and year fIrst hereinabove written. "CITY" CITY OF CHULA VISTA MAYOR CITY OF CHULA VISTA STATE OF CAUFORNIA CITY CLERK. CITY OF CHULA VISTA STATE OF CAUFORNIA ORM: ATTEST: ~ ~ ATTORNEY VI TA, BY TITLE: "DEVELOPER" EASTLAKE DEVELOPMENT COMPANY BY: Ldt:rb (M:\HOMBIBNGINEERILANDDIlV\AGREE2.UlT) %~ ).2- ~\ =X1+,a,r ,q SHEET 1 OF 5 ASSESSMENT DIAGRAM (ACQUISITION) ASSESSMENT DISTRICT 94-1 CITY OF CHULA VISTA, STATE OF CALIFORNIA COUNTY OF SAN DIEGO EASTLAKE GREENS II ~ 8 "--'''0-04 NOT TO ...... LEGEND AN ASSI:SSIiIEMT WAS LEVIED In' THE CITY COUNCtL or THI: CITY OF CHutA VISTA, STArt or CAUf'0IINfA. OM PARCELS or LAND SHOWN. ON THIS ASKISWENT DIAGftAM 1lIAP. SAID ASSESIIIENT WAS LEYlED ON TH[ ~ ~DLl WEltE IlECOiiiKo 'r:'n.[~-:Sr:"'IT~SU:N=DENT OF THE CITY OF CHUU vtSTA ON 1HE_DAY or . 'IIS. RUtJl(NCE II MADE TO THE: ASSESSMENT ROU. RECORDED IN THE 0fTIC[ OF THE 5TRtt1' SUPERINTtNDDlT FOR THE DW:T MIOUNT Of EACH ASStSSIIENT LEVIED AGAINST EACH PARC[L Of' lAND SHOWN ON THIS ASSESSMENT DIAGRAM. .... (j) 143-020-H CITY IIOUNDM'f DISTJItCT IOUMDAIIY PMCtL IOU"DMY NOTAPARTCWTHE:DISTIIICf ASStSSIIEHT NWKII .... CfTY CLERIC. CITY OF CHULA VISTA NOTEI tH[ 8DUNDMY AND PMCtLS AI SHOWN HE.ON ME AS SHOWN ON THE ASSESSOIII'S 'MC€L MAPS OF THE COUNTY Of SAN DIEGO, STATE or CAlIfORNIA FILED IN THE omcE OF 11fE CITY cu:JtK or THE CITY or CHUlA VISTA THIS DAY OF . 11_ CIlT Q.tRK" CITY or CHULA YlSTA IKCOROI:D IN THl 0ff1CE or THE S11II:ET SUPERINTENDENT Of THE CITY OF CHULA vtSTA THIS _OF: . '"1 S1"R(ET SUPERINTENDENT. CITY Of CHULA vtsTA riLED THIS _ OAY OF' . 1," AT _ O"CLOCIt _ IN lOOK _ PAGE _ or IMPS or ASSESSMENT DISTRICTS, RECOIIDEfrS DOCUMOO NO, IN THE orFlCE or THE COUNT'/' RECORDEIl OF' tHE COUNTY OF SAN DIEGO, STATE OF CALIFORNiA. COUNTY IIKORDDI or SAN DIEGO COUNTY ?'~ /3 /t-/<f ~"J.. 1J.-I--.fA ,^~4J+- A ENGINEER'S REPORT PART VI DESCRIPTION OF WORKS OF IMPROVEMENT The proposed works of improvement are generally described as follows: 1. Street improvements consisting of grading, base, paving, curb, gutter, sidewalk, street lighting and landscaping within the following rights-of-way: a. South Greensview Drive - from Clubhouse Drive to Unit 6 entrance (2,400 L.F., Phase 1). b. South Greensview Drive - from Silverado Drive to Hunte Parkway (3,400 L.F., Phase 2). c. South Greensview Drive - from Unit 6 entrance to Silverado Drive (1,920 L.F., Phase 3). 2. Utilities and underground improvements conslstmg of potable water facilities, storm drain facilities, sewer facilities, reclaimed water facilities, electric facilities, telephone facilities, and gas facilities as appropriate by applicable state and federal statutes within the following rights-of- way: a. South Greensview Drive - from Clubhouse Drive to Unit 6 entrance (2,400 L.F., Phase 1). b. South Greensview Drive - from Silverado Drive to Hunte Parkway (3,400 L.F., Phase 2). c. South Greensview Drive - from Unit 6 entrance to Silverado Drive (1,920 L.F., Phase 3). 3. DlF funded street improvements consisting of grading, storm drain, base, paving, curb, gutter, sidewalk, medians, street lighting, landscaping and street monumentation within the following rights-of-way: a. Hunte Parkway - from Clubhouse Drive to South Greensview Drive (2,300 L.F., Phase 2). b. Hunte Parkway - from South Greensview to Orange Avenue (1,270 L.F., Phase 2). 4. DIF funded street and underground improvements consisling of grading, and storm drain improvements within the following rights-of-way: a. Orange Avenue - from Hunte Parkway to the SDG&E easement (3,500 L.F., Phase 2). b. Orange Avenue - from Hunte Parkway to the Olympic Training Center (to be funded only in the event that the actual construction cost of all the TDIF improvements is lower than estimated) 8'~;//~- /0 Page 35 q, WPC M:\HOME\ENGINEER\1875.94 ASSESSMENT SPREAD ADs 90-3.91-1 & 94-1 EASTLAKE GREENS /I PHASES 1, 2 & 3 LAND USE ASSMT/DU ASSMT/DU ASSMT/DU PHASE 1 Tvoe # of Units AD 90-3 AD 91-1 AD 94-1 R25 SFA 78 $1,891.18 $2,924.86 $2,812.96 R20{CITY) SFD 96 $2,248.37 $3,656.07 $3,728.34 R20{COUNTY) SFD 13 $10,753.87 R15 SFD 64 $2,248.37 $3,656.07 $3,728.34 R3(N) SFD 51 $2,125.86 $3,656.07 $3,850.85 PHASE 2 R27 SFD 40 $2,072.36 $3,656.07 $3,904.34 R18 SFD 58 $2,072.36 $3,656.07 $3,904.34 R12 SFD 101 $2,248.37 $3,656.07 $3,728.34 R1 SFD 66 $2,072.36 $3,656.07 $3,904.34 R10(CITY) SFD 196 $2,248.37 $3,656.07 $3,728.34 R10{COUNTY) SFD 91 $10,753.85 R16 SFA 109 $1,744.51 $2,924.86 $3,126.50 R6 SFD 70 $2,132.71 $3,656.07 $3,844.00 R3(S) SFD 51 $2,125.86 $3,656.07 $3,850.85 PHASE 3 R4 SFD 130 $2,195.57 $3,656.07 $3,781.14 R21 SFA 91 $1,891.18 $2,924.86 $2,979.83 R23{COUNTY) SFA 20 $8,692.73 R23{CITY) SFA 135 $1,891.18 $2,924.86 $2,979.83 OTHER R9 $0.00 Golf Course $107,470.00 $166,316.31 R26 $134,001.00 $430,685.05 $220,704.09 Church $20,408.00 TRAILS APN 643-030-04 $794,916.90 East'lv Remainder PM 17476 $795,394.62 TOTAL 1460 Dwelling Units 8-- /7 / f-/'j ATTACHMENT B TOTAL ASSMT PER UNIT $7,629.00 $9,632.78 $10,753.87 $9,632.78 $9,632.78 $9,632.78 $9,632.78 $9,632.78 $9,632.78 $9,632.78 $10,753.87 $7,795.87 $9,632.78 $9,632.78 $9,632.78 $7,795.87 $8,692.73 $7,795.87 $0.00 $273,786.31 $785,390.14 $20,408.00 $794,916.90 $795,394.62 ~~ 8. PUBLIC HEARING FORMATION OF ASSESSMENT DISTRICT NUMBER 94-1 (EASTLAKE GREENS II). On 5/10/94, Council approved the Acquisition/FinancinBa~...ment for A.....ment District Number 94-1. On 2/28/95, Council adopted lbe Resolution of Intention to order Ihe acquisition and financing of certain infrastructure serving the EastLake Gr..ns II proporties pursuant to the Municipal Improvement Act of 1913. On the same date, Council adopled Ihe rosolulion ~ivin~ preliminary approval 10 the Engin..r's Report for A.....ment District Number 94-1 (EastLake Greens 11) and setting puhlic hoarin~s lor 4/4/95 and 4/18/95 for lbe purpose of hoaring public testimony. The first public hoaring was held on 4/4/95. The second public hoaring was opened on 4/18/95 and continued to 4/25/95. Staff recommends approval of the resolutions. (Director of Public Works) Continued from the meetinll of 4118/95, A. RESOLUTION 17874 APPROVING CONTRACTS FOR OWNERSHIP OF UTILITY IMPROVEMENTS IN ASSESSMENT DISTRICT 94-1 (EASTLAKE GREENS II) B. RESOLUTION 17875 ORDERING CERTAIN CHANGES AND MODIFICATIONS TO THE ENGINEER'S REPORT IN ASSESSMENT DISTRICT NUMBER 94-1 (EASTLAKE GREENS II) C. RESOLUTION 17876 DENYING PROTESTS AND MAKING CERTAIN FINDINGS IN ASSESSMENT DISTRICT NUMBER 94-1 (EASTLAKE GREENS II) D. RESOLUTION 17877 CONFIRMING THE ASSESSMENTS, ORDERING THE IMPROVEMENTS MADE, TOGETHER WITH APPURTENANCES, AND APPROVING THE ENGINEER'S REPORT IN ASSESSMENT DISTRICT NUMBER 94-1 (EASTLAKE GREENS II) John LippiU, Director of Public Works, informod Council there was a revision placed on the diu. II rellected a change in oWDership on some of lbe parcels from WeSlem Parcel 10 EastLake. II was easier to change before lbe finalasaessments were confirmod than 10 L'" throullh the proceo;s after the hoaring. Staff recommended Council direct the revisions 10 he made part of the Enllin..r'. Report in the resolutions IS preaented 10 Council. This heing the time and place as advertised, the public h..rin~ was declared opon. Councilmember Moot referred to the two policies regarding lbe lien ratio and maximum tax of 21' and questioned if either of those thresholds were heing approached and if the thresholds were exccoded if it woold automatically he brought back to Council. Mr. LippiU replied lbat on lbe lien ratios there was a ,luorant.. to the bondholders that Ihere would he Ihat ratio. If an appraisal came in higher lbe bond ratio would he kept 10 the 3: I amount. If the ratio excooded lbe 3: 1 ratio the developer was required 10 put up a leuer of credit to the bondholders for the difference. The 2" was for lbe people that would be paying lbeir taxes and was a general policy of lbe City. Staff tried 10 keep those under 2" and in most caaes they were around 1.8". II was stafrs best intention to keep it under 2". Once lbe assessments were confirmed, it would not normally be brought hack to Council unless so directed. The only way it could he corrected would be if the developer made a contribution when they sold the house which was not lbe current process. Council member Rindone felt there should he a procedure in place for review in order to protect the proporty OWDer. He questioned the time sensitivity of the item as he was not comfortable that there was no provision for a review by Council. Mr. Lippitt stated the bonds would not he sold until June so staff could come hack wilh a report hefore the bonds were sold. That could he done witb lbe ......ments on the land because they were hased on henelit. MSUC (RindonelHorton) to direct stall to return in a timely munn... with II mechunism for review should the 1% lien ralio be reached or exceeded. Councilmemher Rindone stated it appoared that lIem 8 was continllent upon lIem 7 and questioned Ihe impact of Council action since the current policy was I" and the propo...1 for lIem 8 was 1.8". Mr. Lippitl stated the Acquisition Agreement had been siL'lled one yoar ago and indicated that they would pay 1.5" or whatever lbe final amount was al Ihe time. They had also submitled a letler which 51ated Ihey agreed to pay whatever lbe final amounl was. II did not relate to lbe cost of the assessments, it was a developor fee. Therefore, Council could make it a condition lbat hefore the bond sale thaI staff return with a final resolution. 3""/'1 Mr. Boogaard Slated the charge imposed was pursuant to a policy estahlished hy Council. Policies could be deviated from on a case by case basis. With the consent of EastLake who had consented 10 a deviation in the particular case it would be binding on EastLake to hold Ihem to their pre-existing agreement 10 pay 1.5'if and the COLlncil could .cknowledge thai the City, for good reason was considering changinglhat origination fee structure. EastLake would then be bound hy the contract ralher than the existing policy which was in a stale of Ilux. Council member Rindone slated on page 8.7, il was in cont1ict with Item 7 on page 7.5 where ElistLake Dewlopmenl Company agreed to pay an origination charge of 1.5 %. The fi....1 impacI stalement Ii" Item 8 stated il was hetween 1.0% and 1.5%. He requesled c1arilication as tn which was correct. Clifti"d Swanson, Deputy Direclnr of Puhlic Works/City Engineer. replied if Item 7 had not heen approved the onglOalton charge would have remained al I % and the fee or charge would have heen $79.000. If Item 7 had heen approved it would have heen 1.5% and the charge would then have heen $119,000. Since ElistLake had agreed to pay whatever was approved when Ihe item was hrought hack, Ihat was whatlhe Ie., would he. Presumahly, since staffs recommendalion was 1.5% the Ie., would have heen $119,000. Mr. Goss slated the sentence Slated, "It is anticipated Ihatthis origination charge would he hetween $79,335 and $119,200". He queslioned if it would be more accurale to say, "It is anlicipated that this origination charge would be $79,300 or $119,200". Mr. Lippitt responded that was correct. Councilmember Padilla stated it was his understanding that Item 8, as it regarded EasILake, ret1ected the stand alone discussions with EaslLake and thai they had talked in lerms of 1.0 % to 1.5 % and indicated they were not willing to have to deal beyond that. If Item 7 was to he adopled it would be 2% under the revised policy. Mr. Lippitt staled it had heen in the pipeline since 1993 and that was the numher staff had always referred to. In the staff report for Item 7 staff specifically kepi EaslLake's at 1.5% as the maximum. It would be staffs intent to keep EaslLake's al 1.5% for that one district if Item 7 was approved as presented. Councilmemher Rindone referred to the new methodology in the last paragraph on page 8-6 which stated providing a significant benelil to EastLake" and he questioned what the signilicant benefit was. Mr. Lippiu replied because the district was going to he huilt in three phases the honds would be issued during the first year and the City's Finance Direclor had indicated Ihat he wanted only one hond issue for the project. There would be interesl available in years two and three that was not spent for construclion and, Iherefore, the property owner when moving in would he given their final assessment. The proceeds from the interest earned would go to help the undeveloped land. Ooce the prqject was fully huilt out and the money was spent then all the land would he paying the same amount each year. Ther. was a linancial henelitlo the developer because h. would not have to pay as much. Councilmember Rindone questioned ifit was one of the henelits on lhe menu of incentives for the high techlbiotech zone. Mr. Goss responded that was correct. There being no further puhlic testimony, the 'puhlic hearing was declared closed. RESOLUTIONS 17874, 17875, 17876, AND 17877, AMENDED TO INCLUDE THE DESIGNATIONS OF OWNERSHIP AS PRESENTED BY STAFf, OffERED BY COUNCILMEI\fBER PADILLA, reading oflhe lext was waived, pus.<ed and approved uRllnimously. g'~ .:2~ COUNCIL AGENDA STATEMENT Item ~ Meeting Date Mav 23. 1995 /71t?';;" ITEM TITLE: Resolution Approving Agreement for Deferral of Sewer Capacity Fee for a Car Wash Located at 3048 Bonita Road SUBMITTED BY: Director of Public of works! ;pr/" REVIEWED BY, City __ JCj ~~ (4/'" Vo'" y~_ No X ) In connection with the application for a building permit associated with development of a car wash at 3048 Bonita Road, the developer was required to pay a Sewer Capacity Fee of $16,206.00. This fee was based on the amount of sewage estimated by staff to be generated by the full development of the site. Information provided by the manufacturer of the car wash equipment (which incorporates a water recycling process) indicated that the car wash may produce much less sewage than sta.ffs estimate. Consequently, the developer has requested that the City defer the payment of this fee until the car wash has been in operation long enough for the actual sewage generation to be determined. RECOMMENDATION: Approve the agreement for deferral of Sewer Capacity fees for a car wash located at 3048 Bonita Road. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable. DISCUSSION: When plans of the project were submitted to the City in connection with an application for building permit, staff estimated that 7.3 Equivalent Dwelling Units of wastewater would be generated by the car wash. This estimate was based on a count of fixture units within the facility and an average generation factor for existing car washes within Chula Vista which was developed by staff. A Sewer Capacity Fee of $16,206 was calculated by staff and paid by the developers. Subsequently, the developers became aware of another proposed car wash in Chula Vista (The Shell station at Telegraph Canyon Road and Halecrest Drive.) where the developer had requested a reduction in the Sewer Capacity Fee on the basis of a lower estimated wastewater generation rate than that used by staff. The estimated lower generation rate would result from the use of water recycling equipment they proposed to use. This project has not been pursued by the developer and thus a final agreement has not been reached. At this time staff cannot support the lower rate because we have been unable to verify the manufacturer's claim regarding recycling of wash water. 9- / qJ, Page 2, Item Meeting Date 5/23/95 9 Council directed staff to work with the developer of the Shell car wash in an effort to arrive at a fair Sewer Capacity Fee and the developers of the Bonita car wash have requested similar consideration. This proposed agreement incorporates all the provisions which were expected to be included in the Shell agreement. No Sewer Capacity Fees were paid in the Shell case, so the refund in this instance is the fIrst such release of fees to the developers by entering into an agreement. The proposed agreement between the City and the developers of the car wash, Mr. Charles R. Tibbet and Mr. Paul D. Magnotto, provides that $13,986 of the Sewer Capacity Fee previously paid to the City by the developers will be released back to them within fIfteen days of the approval of this agreement by the City. The remaining $2,220 is to be retained by the City. The agreement provides that fIve hundred dollars of the retained $2,220 represents a non- refundable processing fee for the deferral. The remaining $1,720 is to be applied to the actual Sewer Capacity Fee which is determined to be payable after the car wash has been in operation for one year. $1,720 represents the approximate Sewer Capacity Fee attributable to the onsite sanitary facilities and a drinking fountain. The developers have indicated their intention to install a separate water meter for the irrigation of landscaping and that intention has been repeated in the agreement as one of its conditions. For commercial establishments our sewer rates are based on the assumption that 90% of the water consumed onsite is discharged to the sewer as wastewater. That percentage, which accounts for 10% of the water consumed on the site being carried away or evaporated is also reflected in this agreement. Because of the use of a separate irrigation meter, no allowance for irrigation of landscaping is provided. The actual fee will be based upon ninety percent of the average daily water consumed being considered to be wastewater. The average daily water consumption will be as metered by the Sweetwater Authority during the bi-monthly billing period most closely agreeing with the fIrst anniversary of the completion of the project and its placement into operation. The Master Schedule of Fees provides a standard factor of 265 gallons of wastewater per day per Equivalent Dwelling Unit. This wastewater factor will be divided into the ninety percent of the average water consumption to determine the number of EDU's for which the project will be charged at the rate of $2,220 each. The agreement will be secured with a Deed Of Trust on the project property, which will be recorded as a lien. The developers will pay interest on any amount of the fee in excess of $1,720 at the rate of 5.5% per annum, compounded monthly. In the event of their default, any outstanding amount will accrue interest at the rate of 10% per annum, compounded monthly, plus a late fee of 5% per month on the amount of the outstanding fee. 9--~ ~ Page 3, Item 9 Meeting Date5/23/95 If the actual Sewer Capacity Fee is less than $1,720 the City will refund the difference (without interest) to the developer within thirty days of the establishment of the fee. FISCAL IMP ACT: The City has adequate funds available in its Sewer Capital Improvements Fund to provide for any necessary sewer upgrades over the time period covered by this agreement. Accrual of interest over the term of the agreement as provided will enhance that fund. RID - File No.PA 002 M:\SHARED\MAGNOITO 9~3 /7-tf q1 RESOLUTION NO. J79tJ;2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENT FOR DEFERRAL OF SEWER CAPACITY FEE FOR A CAR WASH LOCATED AT 3048 BONITA ROAD WHEREAS, in connection with the application for a building permit associated with development of a car wash at 3048 Bonita Road, the developer was required to pay a Sewer Capacity Fee of $16,206.00; and WHEREAS, said fee was based on the amount of sewage estimated by staff to be generated by the full development of the site; and WHEREAS, information provided by the manufacturer of the car wash equipment indicated that the car wash may produce much less sewage than staff's estimate, and consequently the developer has requested that the city defer the payment of this fee until the car wash has been in operation long enough for the actual sewage generation to be determined; and WHEREAS, the City Council is willing to defer fee payment and charge a fee based on actual measured sewage output versus estimated sewage output in light of the following circumstances: (a) Developer has demonstrated that the deferred portion of the Estimated Sewer Capacity Fee is likely to be refundable to Developer based on the actual sewer discharge to be generated by the Project; (b) Developer has agreed to install a separate water meter for irrigation of landscaping which will facilitate measurement of sewer discharge at the Project Property. (c) Developer's willingness to secure its obligation to pay the Estimated Sewer Capacity Fee, if such payment is ultimately required, by providing the City with a Deed of Trust against the Project Property; (d) The current sufficiency of the city's Capital Improvements Fund to provide for sewer trunk upgrades over the time period up until the Estimated Sewer Capacity Fee would be required to be paid under this Agreement. 9;5 cf6 NOW, THEREFORE, BE IT RESOLVED the city council of the City of Chula vista does hereby approve an Agreement for Deferral of Sewer Capacity Fee for a car wash located at 3048 Bonita Road with Charles R. Tibbett and Paul D. Magnotto, a copy of which is on file in the office of the City Clerk as Document No. (to be completed by the City Clerk in the final document). 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 At: , City John P. Lippitt, Director of Public Works ruce M. Attorney c: \rs\ugnotto 9"t qf\ AGREEMENT FOR DEFERRAL OR REFUND OF SEWER CAPACITY FEE [3048 BONITA ROAD, CHULA VISTA] THIS AGREEMENT, is entered into effective as of this day of May, 1995, by and between the CITY OF CHULA VISTA, a municipal corporation, ("city"), and CHARLES R. TIBBETT, an individual, and PAUL D. MAGNOTTO, an individual (collectively "Developer"), with reference to the following facts:' WITNESSETH WHEREAS, one of the individuals comprising Developer (or an affiliate thereof) is the owner of certain real property (the "Project Property") commonly known as 3048 Bonita Road, Chula Vista, California 91910 (Assessor's Parcel Nos. 570-220-03 and 570- 220-30); WHEREAS, Developer, developing an automatic Property; and WHEREAS, as a condition of obtaining a building permit from City for the development of the Project on the Project Property, Chula Vista Municipal Code section 13.14.090 calls for Developer's payment of a sewer capacity fee of $2,220 per Equivalent Dwelling unit (EDU) of additional sewage flow generated by the Project; or an affiliate thereof, car wash ("Project") on is currently the Project WHEREAS, in accordance with the City's Master Fee Schedule, the number of EDU's for the Project has been estimated by city to be 7.3, corresponding to a Sewer Capacity Fee of Sixteen Thousand Two Hundred six Dollars ($16,206.00) (the "Estimated Sewer Capacity Fee"); and WHEREAS, in order to obtain a building permit for the Project, Developer has already paid to the City the Estimated Sewer Capacity Fee; and WHEREAS, information provided to Developer and city by the manufacturer of the car wash equipment indicates that a capacity of 1.0 EDU or less is adequate to accommodate the sewage discharged by the car wash; and 1 q-7 qp WHEREAS, because the car wash equipment manufacturer's estimate of the sewage discharge is significantly less than the City's estimate, Developer wishes to defer payment of the difference until the actual sewage discharge can be measured and a more accurate sewer capacity fee can be calculated; and WHEREAS, in this specific case, city is willing to defer payment of a portion of this fee on the terms and conditions set forth herein in light of the following facts and circumstances: (a) Developer has demonstrated that the deferred portion of the Estimated Sewer Capacity Fee is likely to be refundable to Developer based on the actual sewer discharge to be generated by the Project; (b) Developer has agreed to install a separate water meter for irrigation of landscaping which will facilitate measurement of sewer discharge at the Project Property. (c) Developer's willingness to secure its obligation to pay the Estimated Sewer Capacity Fee, if such payment is ultimately required, by providing the City with a Deed of Trust against the Project Property; (d) The current sufficiency of the City'S Capital Improvements Fund to provide for sewer trunk upgrades over the time period up until the Estimated Sewer Capacity Fee would be required to be paid under this Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1. Terms of PaYment and Deferral. a. within fifteen (15) days after City'S approval of this Agreement, city shall release to Developer $14,340 of the $16,206 Estimated Sewer Capacity Fee that Developer has previously paid to the city. Of the $2,220 retained by the city, $500 shall constitute a non-refundable deferral processing fee. Developer acknowledges and agrees that this deferral processing fee is a fair and appropriate amount designed to reimburse the City for staff time and expense in the processing of Developer'S deferral and refund request. The remaining $1,720 shall be retained by the city and, depending upon the "Actual Sewer Capacity Fee" to be charged to Developer as provided hereinbelow, shall be applied to such fee, or refunded to Developer, as appropriate. b. Approximately one year after completion of the Project, and its placement into service, city shall review the 2 9,15 ct\- overall non-irrigation water consumption within the Project Property during the most recent billing period. city shall then calculate the EDU's at the Project Property on the bases that (1) ninety percent of the total non-irrigation water metered onto the site is discharged to the sewer as wastewater and that (2) 265 gallons per day of wastewater discharge, as provided in city's Master Schedule of Fees is equivalent to one EDU. c. The sewer capacity fee to be charged to the Developer (the "Actual Sewer Capacity Fee") shall be calculated as the product of the number of EDU's (calculated above) multiplied times $2,220.00. d. If the Actual Sewer Capacity Fee is greater than $1,720.00, Developer shall pay the City the difference between the Actual Sewer Capacity Fee and $1,720 (the "outstanding Sewer Capacity Fee"), plus interest on the outstanding Sewer Capacity Fee at five and one half percent (5.5%) per annum, compounded monthly for the period commencing with the effective date of this Agreement and ending on the date the Actual Sewer Capacity Fee was calculated. Such amount shall be due and payable, by check or other immediately available funds, by no later than thirty (30) days after the outstanding Sewer Capacity Fee owed is communicated to the Developer in writing. If Developer fails to pay the Outstanding Sewer Capacity Fee when due, Developer shall be in default hereunder and any outstanding amount thereof shall accrue interest at the default rate of ten percent (10%) per annum, compounded monthly. In addition, because city will incur extra administrative expenses in the event of Developer's default, Developer shall be charged a late fee in the amount of 5% of the outstanding fee for each month, or portion thereof, the amount remains outstanding. e. If the Actual Sewer'Capacity Fee is less than $1,720.00, City shall refund the difference to Developer, without interest, within thirty (30) days of the establishment of such fee. f. In order to secure Developer's obligations under this Agreement, Developer shall execute, notarize and deliver a Deed of Trust with respect to the Project Property in the form attached hereto as Exhibit A ("Deed of Trust"). The Deed of Trust will be recorded as a lien against the Project Property. Developer agrees to perform such further acts and to execute and deliver such additional documents as may be reasonably required in order to 3 9/( ~~ perfect City's security interest in such property and to otherwise carry out the provisions of this Agreement. Developer acknowledges that the Deed of Trust contains a Due on Sale provision. 2. Other Fees Due and pavable. Except as expressly provided herein, Developer shall be obligated to pay all other processing and impact fees related to the Project customarily required by the City, as set forth in the Master Fee schedule or otherwise, at the time the Building Permit for the Project is obtained. 3. Assianment and Transfers. a. Developer may not assign its obligations or rights hereunder without city's prior written consent to be exercised in City'S sole discretion. Any attempted assignment in violation of this section shall be void and shall constitute a material default hereunder. b. Should all or any portion of Developer's interest in the Project Property be transferred before the Actual Sewer Capacity Fee is paid in full, Developer shall remain fully responsible for the payment thereof to the city on the terms and conditions set forth herein. c. Developer's obligations hereunder shall also run with the land and be binding upon all successors and assigns to the Project and the Project Property. 4. General Remedies for Developer Default: Riaht to Withdraw Permits. In order to enforce Developer'S obligations under the terms of this Agreement, the city shall be entitled to pursue any and all remedies provided at law or in equity, including, without limitation, any and all remedies provided under the Deed of Trust. Without limiting the generality of the foregoing, in the event of a default by Developer of its obligations hereunder, the City shall also have the right to withdraw all business or other permits issued by the City permitting the construction of the Project and/or the operation by Developer of its business at the Project Property or elsewhere in the City. . 5. citv's Riaht to Record Aareement. If City so elects, city may record a copy of this Agreement in the Official Records of San Diego County, in which event this Agreement shall constitute a lien against the Project Property for the benefit of City. 4 9-/t/ ~ 6. Miscellaneous Provisions. a. Authoritv: Developer represents and warrants that Developer has full power and authority to enter into this Agreement. b. Notices: Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.S. mail, certified, or registered mail, return receipt requested, first-class postage prepaid, addressed to the address indicated in the Agreement. A party may change such address for purpose of this paragraph by giving notice of such change to the other party. Facsimile transmission shall constitute personal delivery. city of Chula Vista 276 4th Avenue Chula Vista, CA 91910 Attn: city Attorney's Office Charles R. Tibbett 3048 Bonita Road Chula Vista, Ca. 91910 (A party may change such address for the purpose of this paragraph by giving written notice of such change to the other party in the manner proviaed in this paragraph. Facsimile transmission shall constitute personal delivery. ) City: Developer: 7. caDtions. captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. 8. Entire Aareement. This Agreement contains the entire agreement between the parties regarding the sUbject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect. 9. PreDaration of Aareement. 5 9~Jl ~~ No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting of this Agreement. 10. Recitals: Exhibits. Any recitals set forth are incorporated by reference into this Agreement. 11. Attornevs' Fees. The prevailing party in any action enforcing the provisions of this agreement shall be entitled to reasonable attorneys' fees and court costs in addition to any other costs, damages, or remedies. 12. Governina Law. The Agreement has been executed in California and shall be governed by the laws of the state of California. 13. Invaliditv. If any term, covenant or provisions of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 14. Time. Time is of the essence in the performance of the Parties' obligations contained herein. 15. Waivers. The waiver by one party of the performance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered a waiver by him of any other covenant, condition or promise. The waiver by either or both parties of the time for performing any other act or identical act required to be performed at a later- time. The exercise of any remedy provided in this Agreement shall not be a waiver of any consistent remedy provided by law, and any provision of this Agreement for any remedy shall not exclude other consistent remedies unless they are expressly excluded. 16. Further Assurances. The parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be 6 9~/2 Db reasonably required in order to carry out the provisions of this Agreement, or any of the agreements or documents referred to herein, and the intentions of the parties. 17. Successors. Subject to the restrictions on assignment contained herein, all terms of this agreement shall be binding upon and be enforceable by the parties hereto and their respective heirs, legal representatives, successors and assigns. 18. Joint and Several Liabilitv. The individuals comprising Developer shall be jointly and severally liable for Developer's obligations hereunder. [Next Page Is Signature Page] 7 9~/J q,l, SIGNATURE PAGE TO AGREEMENT FOR DEFERRAL AND POTENTIAL REFUND OF SEWER CAPACITY FEE IN WITNESS WHEREOF, City and Developer have executed this Agreement effective as of the date first set forth above thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: CITY OF CHULA VISTA Shirley Horton, Mayor By: Attested by: Beverly Authelet, City Clerk Approved as to form: .n~ Attorney 8 9-/'/ q'\ .....of~ COIIIlI)' 01... Dioto ) ...~~/'~ .....";l'~':i';,;.~..,., M~ PI1.b11c M1 .~ '- '~:::':!~IO"OD_"'iIIol~~IO""~~"""'Io"widIia ~lIldl:b.CT"' "r to__...".....~lb8_.~auIbodMId~lIIdtbalby~.........OD ......... die ~or _eadl1.- w.JI oIwWctJ,... ~... aocacd"~. ct--~~ I1VC j/; _ I OFFICIAl. lEAl. II _ . DIANE C. INANDAN do . . NOTARY PUBlIC.CAlIFORNIA: Il!' ,. 'COMM. NUMBER 1000638 ! II ~WPfllNCIPAlOfFICEINSNlIllEGOCOUNTY I ""0;'. UYCOUM EXP AUG 151997 _of"""""'" """"" of........ I ""~~ Iflf!i' .....""'./)/~ c./~N'~"H6-Ic. porI(IllfJJy IJIIlOINd I.. ,,1lHiN 6 TT'D""'- ~r-' ~~IO__lbDbMitot...faoaoryevideD08lO""'~~tlillcribedlO"wIddD ~........",.1IdtId 1O_..bII"""IllIiOCl\IIDd__ia~audloriDd ~lIIId1hatby"~'" '1P""~-'1t) CID dID...... dIO,...pI;.......aky.. beWf 01 wIddl dID PD*lIlf( tlCIlod, ___ . ____. c f II OFFICIAL lEAL II DIANE C. INANDAN ~ ~ .; NOTARY PUBLIC4CAlIFORNIA! Ii , . COMM. NUMBER 1000638 .:. II ~PflINCIPAlOFF~EINSNlDlEGOCOUNlY I """~". MY COMU F.XP AUG IS 1997 9" J.5!9-ICf ----..- ~WtviduII6l)""'lor~ D_ 0ftbr(I) ~) "- D_> - D_ ...... -~> OTnIIliDo(I) T_ D""'" <S/~ ~ r_l -1- _1- -..........- )(IDllMdIaI(I).... for-at~ D_ 0fB00r(I) TIlIo(I) "- D_> - D_ ...... _I DTf'\IMo(I;) T"'" DOlboJ SJ~~ _1- _1- COUNCIL AGENDA STATEMENT Item It? Meeting Date 5/23/95 ITEM TITLE: /79t?.3 Resolution Approving request for fee waiver from Chula Vista Aquatic Association Director of Parks and R:rit~ City ManagerJ~ ~~I (4/5ths Vote: Yes_No..x.l SUBMITTED BY: REVIEWED BY: The Chula Vista Aquatic Association (CV AA) is requesting a fee waiver in connection with their swim pool use charges. The charges are for staff services (Lifeguards) provided by the City during CV AA's use of City pools for team practices and competitive swimming meets. CV AA is requesting that the City waive the outstanding balance due (including charges that have been assessed for past-due billings), and allow them to continue use of the pools from a debt-free starting point. Since the charges have been billed, according to the rates depicted in the Master Fee Schedule, the request from CV AA is actually for the forgiveness of charges associated with their past use of City swimming pool facilities. Staff has discussed the Association's request for the forgiveness of pool charges, and have worked out a process which is agreeable to both parties. This report discusses the provisions of the proposed agreement. RECOMMENDATION: That City Council forgive 50% of the outstanding balance due and 100% of the late fee penalties assessed against the balance due, and allow CV AA to reimburse the City for the remaining balance over the course of 36 months. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable DISCUSSION: The Chula Vista Aquatic Association (CV AA) is requesting a waiver of fees associated with their use of City swimming pool facilities (Attachment A). Council reviewed the request at their meeting on April 25, 1995, and referred the item to staff for evaluation and recommendation. CV AA is a private, non-profit youth competitive swimming team that came into existence in 1973 when a groups of parents took over the program that the City had been conducting since the mid-1950's. The team utilizes the City's swimming pools for team practices and meets on a year-round basis. Beginning in 1992, the City began providing City Lifeguards to oversee the team's activities at the pools. Prior to that time, CV AA had provided their own lifeguard. The change was instituted based on a number of concerns including liability issues, facility supervision and security, quality of lifeguarding services, and accountability. CV AA is required to reimburse the City for these services on a monthly basis. Due to unexpected financial difficulties encountered by CV AA during the past year, the team began having problems meeting their financial obligations to the City last fall. Monthly payments have been submitted on an irregular basis, often three to four months past due, and most recently, the team has not (Alll.CVMI'EES....ll] /t1- / ~ Item / fJ Meeting Date 5/23/95 been able to reimburse the City for Lifeguard services for the past five months (December '94 - April '95). The outstanding amount due is $4,331, which includes $279.94 in late fees assessed by the Finance Department for overdue bills. Staff met with the Board President and Treasurer of CV AA recently in an attempt to reach a mutually agreeable solution to the problem. It should be noted that CV AA has already taken a number of steps to mitigate their financial difficulties, and are making a good-faith effort to raise funds and manage their finances is a manner that will allow them to reimburse the City for past and future pool use. CV AA has iristituted changes in coaching staff, salary levels and incentives, and are actively involved in a number of innovative and creative fund-raising activities that include incentives for parents and swimmers. They are also soliciting corporate support and sponsorship and have increased monthly participation fees and annual assessments to members. The team has also instituted an active membership recruitment campaign, and they expect that their membership will increase substantially in the next three to four months. The team has also reduced the amount of time that they are utilizing City facilities until a time that increased membership warrants additional use. CV AA's existence depends on their ability to utilize the pool, and staff is reluctant to prohibit continued use at this point, since youth competitive swimming is a valuable component of an overall and comprehensive aquatics program. Staff and CV AA's representatives were able to negotiate an agreement that is mutually acceptable. The proposed agreement addresses past reimbursements, as well as future payments for the teams' continued use of the swimming pools. The details of the proposed agreement are outlined below: 1. The City would forgive 50% ($2,025.53) of the current outstanding charges due, along with 100% ($279.94) of the late-fees that have been assessed by the City for past due billings. The total forgiveness of fees would be $2,305.47. 2. CV AA would reimburse the City for the remaining 50% ($2,025.53) of the current outstanding balance (minus late fees), over a period of 36 months. 3. CV AA would be required to provide full payment, in advance, for estimated staff services on a month-to-month basis, with payment due dates the last business day of the preceding month. This payment schedule is proposed to commence on June 1, 1995. FISCAL IMPACT: Loss of $2,025.53 in staff services reimbursements from the charges that have been billed, to the General Fund, and a loss of $279.94 in late fee charges. Attachment: Waiver Request Letter from CV AA IAm.C"IMI'E6S.All] 2 /t:7~.2. ~ RESOLUTION NO. /79&3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING REQUEST FOR WAIVER OF DEBT FROM CHULA VISTA AQUATIC ASSOCIATION WHEREAS, the Chula vista Aquatic Association (CVAA) currently owes the City $4,052.06 in pool fees and $279.94 in late fees ("Debt"); and, WHEREAS, CVAA is requesting a forgiveness of the Debt associated with their past use of city swimming pool facilities; and WHEREAS, the fees were imposed are for staff services (Lifeguards) provided by the City during CVAA's use of City pools for team practices and competitive swimming meets; and NOW, THEREFORE, THE CITY COUNCIL DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: section 1. Public Puroose Findinq. Chula vista Aquatic Association is a non-profit association that serves a valuable public purpose that would otherwise need to be served by the city, and that the foregiveness of part of the Debt in the manner herein allowed has a legitimate public purpose of permitting the Association to stay solvent and operating in a manner that will permit the CVAA to accomplish its mission and continue serving the public good. section 2. Partial Debt Forqiveness. On and after meeting the following conditions: a. CVAA keeps its future pool fees account current during the Payment Period; b. Prior to the commencement of CVAA's use of the pool for a given month, CVAA shall advance the cost estimated by the City Manager, or his designee, for the estimated staff services rendered during the CVAA useage of the pool; and, c. CVAA pays $2,025.53 of the Debt (50% of the Debt less the late fees), in equal monthly payments of $56.26 per month for- the next 36 months ("Payment Period")!!, the City will, at the end of the Payment Period, and if CVAA is not then in material breach of the conditions of this resolution, 1. Note the amortization is non-interest bearing until a default occurs. /~-3 ~ forgive CVAA from payment of the balance of the Debt ($2,025.53 of the current outstanding fees due, along with 100%--$279.94--of the late fees that have been assessed by the City for past due billings incurred prior to the date of this resoltion. Presented by Jess Valenzuela, Director of Parks and Recreation C:\rs\CVAA.fee J?'~ f Bruce M. Attorney VedX \0\ " ,. . . Attachment "A" RECEIVED '95 Am 18 !Ill 'A7 my OF CHULA VISTA CITY CLERK'S OFFICE ( April 18, 1995 Honorable Mayor Shirley Horton and Council, I am writing this letter on behalf of the Chula Vista Aquatic Association, also known as CVAA. We are in a position that we have never been in before. We are advised that we will loose th~ use of city swim facilities if unable to pay the lifeguard bill to the City in the amount of $3,395.75 by April 28, 1995. This will, in essence, terminate Chula Vista Aquatic Association. Because of an exceptionally harsh winter and equivocal economy along with some unsound decisions made by the previous board, we are in a position to ask for help. Our financial picture makes it impossible to come up with this sum at this time. We have held fund raisers, assessed families, implemented a fair share program and presented our quest for sponsorship to the community through an article in the Star News. These actions have only allowed us to stay afloat but have not been enough to payoff previous debts. We are asking you, the Council, to please review our case and eliminate our past debt allowing us to continue our operations on a clean slate with the City. CV AA was founded in 1956, as part of the recreational program of the city of Chula Vista In the 1960's CVAA was known as the "powerhouse" in the county. In 1973, in response to funding cuts, the City of Chula Vista stopped sponsoring competitive swimming. At that time, a parent's club took over the financial obligation of CV AA. From 1976 to present, CVAA swimmers have set district records that still stand, as well as National Age group records. We have been represented at the Jr. Nationals, and swept first place In every event in the Eastlake South Bay Summer Games. In 1992 Chula Vista hosted the Short Course Junior Olympics and swimmers and families were welcomed to our fine city by Mayor Tim Nader. Most recently two of our swimmers qualified for Far Westerns. Some of our other swimmers just missed qualifying by a few seconds. CVAA provides many services to the community and its children. It is the only program that provides year around training for swimmers in Chula Vista This training 1;;:, allows the swimmers to swim at a competitive level. Thus, allowing them to receive scholarships_fpr college and to go as far as they ever dreamed possible. With the 'J;J.,A,/ c&.:~~('// ~~ -r,PJ .. .. p;~~. "'.. f!. IA. ~~,,~;:.;J Il: .,n:.,~., ~ t1?! If .. \i.jig c Ti~Oi:a~TiUIi~~C~l rk'~':~S 0.:. P'~ /I..... ~~ /~ - . 'OIympic training center nearby we are in an Ideal situation to encourage our youth to strive for their dreams. Some of those dreams have been met by previous CVAA swimmers, such as Greg Lougainis. Above all, CVAA provides each child with an individual goal, teaches discipline, and the true meaning of a team is learned. It helps build self esteem and confidence. Community pride is develOped as they are the representatives for their city. This program provides daily swimming, training and exercise for our communities youth, whether they have Olympic dreams or not. Many CV AA swimmers go on to become lifeguards or recreational aides for the city. We have contributed to the city through the purchase of equipment for the pool. We have purchased lane lines, lane line reels, timing clocks and various other equipment that Is used by many of the city's other aquatic programs. Over the years CV AA has invested thousands of dollars in the Loma Verde facility. CVAA also has two Memorial Funds. One allows financially burdened families an opportunity to have their child swim for a nominal fee. The other insures that any swimmer who qualifies for a Far Western or National Meet, but cannot afford to, will go to that meet. We are supported by the Parks and Recreational Department. During the summer months they feed 25 to 75 children who have advanced swimming abilities Into our program. This volume of swimmers allows CVAA to flourish in the summer months and gets new children into the mainstream of swimming as one sport option that many of them never knew about. Board members, swimmers, families and supportive community sponsors do not want this dynasty to die. In order to get us through this tough time we are asking for your help. You can make the difference to our communities children by assisting us to overcome this financial hurdle and put us back on a clean slate. Please find It in your heart to offer these children another chance to keep their team together. We are counting on you. We hope you will eliminate CVAA's past debt to the city in order to allow the operations of CVAA to continue. WIth thirty nine years of history we want to continue to be their for the children. Sincerely, a$-7!-< G 'i~ Anne Taylor, President Board of Directors CV AA JtJ~ ~ COUNCIL AGENDA STATEMENT Item J) Meeting Date 5/23/95 ITEM TITLE: Public Hearing: Conditional Use Permit PCC-94-09: Request to extend approval for a private school for approximately three years (through September 1999) and to allow the expansion of said school facilities into the second story of the building located at 2400 Fenton Street within the EastLake Business Center - Covenant Christian School Resolution J 79 tJ r Denying the requested time extension but approving a requested expansion of an existing Conditional Use Permit (pCC-94-09) to Covenant Christian School to operate a private school at 2400 Fenton Street within the EastLake Bu iness Center. SUBMITTED BY: Director of Planning ~ REVIEWED BY: City Manage~ ~ (4/5ths Vote: Yes_No-XJ The proposal is for an extension (throu~Sep;mber 30, 1999) of the term of an existing Conditional Use Permit PCC-94-09, which approved Covenant Christian School, a private school for grades K-12 at 2400 Fenton Street within the Eastlake Business Center. The permit was approved by Council in December 1993 for a 2.5 year period extending through June 1996. The application also requests permission to expand the existing facility, which currently operates on the ground floor of a two-story building, to the second floor which was previously occupied by Bonita Country Day School. The expansion would become effective inunediately. The Environmental Review Coordinator has determined that the proposal is exempt from environmental review under CEQA as a Class I exemption (the operation of an existing facility). RECOMMENDATION: That the City Council adopt the Resolution to deny the requested extension but approve the requested expansion for the term of the existing permit (June 1996). BOARDS/COMMISSIONS RECOMMENDATION: On April 12, 1995, the Planning Commission voted 5-0 to deny the requested extension but approve the expansion for the term of the existing permit in accordance with Resolution PCC-94-09(M). The Commission further recommended that staff work with the applicant in fmding a suitable permanent EastLake location during the upcoming planning efforts for EastLake Ill, and that staff be given the ability near the expiration date of the permit to grant a modest extension of perhaps six to twelve months provided the school can document that they are actively pursuing a permanent site (see discussion under Alternatives). /1-/ \of)- Page 2, Item ) / Meeting Date 5/23/95 DISCUSSION: I. Site Characteristics The property, zoned P-C (Planned Community), lies at the easterly edge of the existing EastLake Business Center and is bounded on the north, west, and south by undeveloped industrial parcels. The property to the east is within EastLake III and is planned as an extension of the Business Center. The 1.25 acre site is occupied by a 20,000 sq.ft. two-story building, with access provided via Fenton Street; 63 parking spaces are located along the north, east, and south portions of the site. The property contains no recreational or playground facilities; outdoor recreational and physical education activities are conducted in Scobee Park under an agreement with the EastLake Business Center Owners Association. Scobee Park is located approximately 1,000 ft. west of the school within the EastLake Business Center. 2. Zoning and Land Use Covenant Christian School operates a private school for grades K-12. School activities for up to 208 students and 24 staff are approved at Fenton Street through June 30, 1996. Currently, Covenant Christian's secondary school (grades 7-12), comprised of 70 students and 10 staff members, occupies the first floor of the Fenton property (the elementary grades of the school are presently held at their original Naples Street location). The second floor of the Fenton Street property, formerly occupied by Bonita Country Day School, is now vacant. Covenant Christian School was approved for 2 1/2 years at this location by the City Council in December of 1993. Although the applicant had requested approval for a five- year term, the Council expressed concerns relating to the impact of a school site on the development potential of the EastLake Business Center. In approving the 2 1/2 year term, it was stated that the permit could be considered by the City Council for renewal and extension beyond the approval date in consideration of the following specific factors: (I) whether there exists, or there is expected in the near future to exist, within the EastLake Business Park a demand for sites by users which, by virtue of requirements of law involving the siting of hazardous waste generating uses within a given distance from an operating school, may require such prospective users to engage in costly and time consuming studies and reports before such use may be allowed; and (2) the potential for conflict with surrounding development and/or any changes in the plans for the Business Center. /1~;2 " Page 3, Item / / Meeting Date 5/23/95 The permit was also conditioned upon the requirement that any request for extension of the permit be submitted and considered at least one year prior to the June 1996 expiration date. This was intended to allow the school ample time to fmd an alternate location and to relocate if an extension was not granted. Classes are held from 8:15 a.m. - 3:00 p.m. Monday through Thursday, and 8:15 a.m. - 12:00 noon on Fridays. As mentioned previously, recreational facilities are provided at Scobee Park under an agreement with the EastLake Business Center Owners Association. Under that agreement, recreational and physical education classes may take place between the hours of 9:30-11:30 a.m. and 1:30-4:00 p.m. Monday through Friday. An agreement from the Business Center Association granting approval for the use of the park during the requested extension period has not been provided to staff. However, the applicant has stated that one will be available at the City Council meeting. 3. Proposal The applicant proposes to extend the approval period of the existing permit from June 30, 1996 to September 30, 1999. Additionally, the applicant requests permission to expand current operations to the second floor of the existing building, increasing the floor area utilized to include the entire building, or a total of approximately 20,000 sq.ft. and increasing to a maximum of 260 students and 34 staff (see operational profile attached as Exhibit "A"). The requested expansion would allow the school to relocate its elementary grades from their Naples location to the Fenton site. The hours of operation would not change. In a letter supporting the request, the applicant cites the following factors (see Exhibit "B"): . the extension is supported by EastLake . the school is consistent with the atmosphere of the Business Center . no biotech company in San Diego has ever been required to do an RMPP . there is no requirement for a business locating within 1000' of a sensitive population to develop a Risk Management and Prevention Program (RMPP); the school will not affect prospective users with regard to expensive testing requirements (see staff comments on page 5) EastLake Development Company has written a letter endorsing the request (please see letter from Curt Stephenson of EastLake, attached as Exhibit "C"), but has not as yet submitted documentation approving the extended use of Scobee Park. This is expected to be presented at the Council hearing. ///3 t'* Page 4, Item II Meeting Date 5/23/95 4. Analysis Staff has not received any complaints involving, nor have we been informed of any problems regarding, the existing school operations. The conditions of approval have been met, and the applicant is requesting this extension/expansion well in advance of the June 30, 1995 deadline (one year prior to the June 1996 expiration date) specified in the original approval. As stated previously in this report, the two factors which were directed by the City Council to be analyzed in considering a renewal or extension beyond the original approval date of this permit are (1) whether future users may by requirements of law be required to engage in costly and time consuming studies by virtue of proximity to the school, and (2) the potential for conflict with surrounding development and/or any changes in plans for the Business Center. Countv Hazardous Materials Manal!ement Division Requirements Prior to January, 1992, Section 65850.2 of the California Government Code prohibited a city or county from permitting a new facility which handled acutely hazardous materials (ARMs) to be constructed within 1,000 feet of a school unless the requirements of a Risk Management and Prevention Program (RMPP) were fIrst met and approved. On January 1, 1992, this Section was revised, and the reference to 1,000 feet was removed. However, absent specific criteria, the County of San Diego Department of Health Services, Environmental Health, Hazardous Materials Management Division (HMMD), continued to use the 1,000 ft. rule until new standards were adopted in March, 1994. With the new standards, HMMD, as the administering agency, is required to make a specifIc determination as to whether a new or modifIed business operation could create an acutely hazardous materials accident risk. If so, an RMPP is required. To make this determination, HMMD has established an acutely hazardous materials accident release screening model. Businesses that handle acutely hazardous materials (ARMs) that fall below the threshold planning quantity (TPQ) are exempt from preparing an RMPP. Businesses that handle levels of ARMs at or above the TPQ, are screened through a computer model that uses various factors to determine whether an accident could result in an off-site release (gasses being the most likely problem). One of these screening model factors considers whether the facility in question is located within a rural or an urban setting; however, proximity to a particular "sensitive" population is not involved (see letter to applicant from Mike Handman of HMMD, attached). Such proximity would, however, require additional analysis for the purpose of addressing the population if an RMPP was required. Since proximity to a school IJ,tj \0"> Page 5, Item / I Meeting Date 5/23/95 would not in itself trigger the RMPP, the first factor for consideration of renewal of the permit would appear to be successfully addressed. Comoatibilitv The second issue to be assessed in considering any extension for the school is that of the potential for conflict with surrounding development and/or any changes in the plans for the Business Center. On February 14, 1995, the City Council approved amendments to the EastLake Business Center Planned Community Regulations to establish a planned "High Tech/Bio Tech" zone encompassing Phase I and II of the Business Center (see attached locator). This zone is being created specifically to attract and encourage certain qualifying high technology and bio-technology businesses through streamlined regulations and approval processes. Although the site is presently surrounded by vacant property and is located on the eastern periphery of Phase I of the Business Center, Fenton Street is intended to be extended east and the property will eventually be almost directly in the middle of the Center with the planned Phase II expansion. Planning and mapping for EastLake III, which includes the Business Center Phase II expansion, is expected to be completed by July - September 1996 based upon the Planning Department's current work program. The plans for the new High Tech/Bio Tech zone include a streamlined permitting process that will enable new businesses locating in this area to bypass the traditional Design Review and Conditional Use Permit processes through a special Council Subcommittee. The new regulations developed for this zone are specifically aimed at attracting and fast- tracking new industrial development. Therefore, although the properties on this portion of the Business Center are currently vacant, it is possible that new businesses could be established in a relatively short period of time. Certainly decisions regarding future locations could be made by companies very quickly as noted earlier. The City is currently in the process of developing promotional programs intended to attract quality users to this area. One such effort is the preparation of an overall "Menu Agreement" with EastLake which will provide a vehicle for facilitating the transfer of discounted and donated land and/or the payment by EastLake of City fees for City- designated high tech/biotech companies. This tool has already been approved in concept for use in negotiations with a pharmaceutical company which has indicated interest in establishing a commercial-scale manufacturing operation in EastLake. This biomedical company (whose discussions with the City require confidentiality at this point) currently employs 100 people in an existing 70,000 sq.ft. facility. They are seeking to expand to a 90,000 sq. ft. facility and are projecting an increase in personnel by approximately 75 people (see attached memo from Community Development). //,,5 ~ Page 6, Item / / Meeting Date 5/23/95 Staff is of the opinion that the existence of the school could discourage some potential users from locating in the Business Center, not only in the short term, but also for the long term in the sense that prospective users would have no guarantee that the school would not be further extended or even perhaps be established as a permanent use at this location. The Community Development Department has also expressed concerns regarding the potential negative impact the school may have on their ability to secure tenants for the proposed BioShare contract pilot manufacturing facility (see attached memo from Community Development). It is also staff's concern that having a school in close proximity to a potential site may have the effect of further inhibiting or discouraging prospective businesses that handle hazardous materials from considering the location. According to HMMD, pending federal regulations may impose additional restrictions on hazardous materials handlers in the near future. Further, existing regulations are subject to change. For example, the classification of what materials are "acutely hazardous" (ARMs), as well as the threshold planning quantities of existing identified ARMs, is regularly revisedl updated, according to HMMD. Potential users must therefore consider not only current regulations affecting their businesses, but also possible future changes that might relate to the issue of sensitive populations. The potential for impact on a Business Center user which handles hazardous materials, resulting in increased costs either through studies or modifications to operations or potential liability , could easily lead a prospective business to choose a site where no such population exists nearby. Setting aside the issue of hazardous materials, a school use is not considered by staff to be appropriate in the middle of a developing industrial area. There is much merit to the argument that schools and freestanding childcare facilities should be located in close proximity to places of employment. However, from a planning perspective, uses of this type should ideally be accommodated at the periphery of commercial and industrial areas so as to minimize conflict between these very different types of uses. In fact, in order to accommodate these and similar uses EastLake is required to set aside a total of 10.8 acres for Community Purpose Facilities. A number of factors create the potential for conflict between children's schools and industrial uses. Heavy truck traffic along Lane Avenue would pose a potential safety issue with children crossing the street on their way to and from recreation activities at Scobee Park (albeit accompanied by adults). Additionally, the noise of truck traffic and the emissions associated with them are often not conducive to the atmosphere sought for schools or child-related activities. Noise is also a potential source of conflict between these two uses. Not only could noise generated by Business Center uses negatively impact school operations, but perhaps more importantly in this particular case, the noise generated by children playing, and the other //~f, \O~ Page 7, Item ) / Meeting Date 5/23/95 activities associated with; school use, could be distracting and disruptive to research and development, administrative, or other similar activities associated with Business Center operations. The issue has been raised by the applicant that daycare facilities are permitted as an accessory use within the Business Center, and this is inconsistent with staff's contention that a school for children is not compatible with the High Tech/BioTech uses being sought for this area. Daycare facilities have been permitted as accessory uses in the EastLake Business Center since its inception and prior to the adoption of the BioTech zone amendments. It was not deemed desirable to remove this opportunity from the district regulations for a number of reasons. It is not uncommon for employers to now offer on-site child care. These are generally small operations that are incorporated into the design of the facilities as an additional amenity for employees. They are internal and accessory, but do not supplant the intended uses in this zone. Such facilities are offered and controlled by the employers and take place within the users' facilities. Thus compatibility, or rather the lack thereof, would be addressed by those most affected, namely the employers themselves. The number of children as well as the range of ages served are limited. The childcare facilities and activities are conducted and assimilated within the employer's facility, and thus outside activities and issues involving a large number of school age children in a separate school facility on an adjoining or nearby site are not an issue. Given the potential for conflict between the school and the planned users of the EastLake Business Park, and the adoption of the new high tech/biotech zone, the proposal to extend the term of the permit does not appear to staff or the Planning Commission to be consistent with the second factor to be considered in approving an extension, i.e. the potential for conflict with surrounding development and/or any changes in the plans for the Business Center. Alternatives If the Council is reluctant to maintain the existing fIrm expiration date of June 1996 as recommended by staff, the existing conditional use permit could be amended to allow an administrative extension upon the subtnittal of documentation by the applicant that plans for a permanent site are being actively pursued. Such an option should only be considered near the expiration date of the existing approved term, perhaps within six months of June 1996 (no earlier than January, 1996), and should be for no longer than a six-month or twelve-month period. This option has been recommended by the Planning Commission. /I~ ? ., Page 8, Item / / Meeting Date 5/23/95 This alternative would also recognize the fact that the planning for EastLake III will be on-going over the next year or so, culminating in approved plans sometime around mid to late 1996. If the school desires to remain in EastLake it would be the intent of staff to use this process to work with the school and EastLake development to identify an appropriate school site. In that case, a limited extension may be appropriate considering the timing of the planning efforts. A second alternative, suggested by the applicant, is the approval of the extension subject to periodic (e.g. bi-annual, in June and December) review. The applicant suggests that approval could be conditioned such that if new businesses locate within the Business Center and create the potential for "conflict" with the school, the school could be required to vacate the property within a six month period designed to coincide with the end of a given school term (e.g. in June or December). The second alternative is not supported for several reasons. First, it suggests a framework for defming and determining conflicts which does not yet exist. Second, it would likely require and suggest to prospective businesses the prospect of extended and time consuming determinations of conflict. And, finally, it does not address and may arguably exacerbate the perception of potential conflict by businesses considering a location in the Business Center. 5. Conclusion Based upon the information provided in the preceding sections, staffs recommendation is for the denial of the requested extension but approval of the requested expansion for the term of the existing permit in accordance with the Council Resolution. FISCAL IMPACT: The fees for processing this application have been waived under the City's non-profit fee waiver provisions. Attachments 1. Commission and Council Resolutions 2. Minutes from Planning Commission meeting of April 12, 1995 2. Locators and Floor Plans 3. Disclosure Statement 4. Supplemental Information from Applicant Exhibit "A" - Applicant operational profile Exhibit "B" - Applicantlerter Exhibit "C" - Lerter from Curt Stephenson, EastLake Development 5. Lerter from HMMD 6. Memos from Community Development Department 7. Lerters to Mayor in Support of Application 8. P.C and C.C. Minutes and Resolution from Original Hearings on Covenant Christian School J/-~ \\)~ RESOLUTION NO. /79tJ'I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING A REQUESTED TIME EXTENSION BUT APPROVING A REQUESTED EXPANSION OF AN EXISTING CONDITIONAL USE PERMIT (PCC-94-09) TO COVENANT CHRISTIAN SCHOOL TO OPERATE A PRIVATE SCHOOL AT 2400 FENTON STREET WITillN THE EASTLAKE BUSINESS CENTER I. RECITALS A. Project Site WHEREAS, the parcel which is the subject matter of this resolution is diagrammatically represented in Exhibit A attached hereto and incorporated herein by this reference, and commonly known as 4500 Fenton Street, and for the purpose of general description herein consisting of 1.25 acres located on the south side of Fenton Street, within the EastLake Business Center ("Project Site"); and, B. Project; Application for Modification to Conditional Use Permit WHEREAS, a duly verified application for a modification of Conditional Use Permit PCC-94-09 was filed with the City of Chula Vista Planning Department on November 21, 1994 by Covenant Christian School; said modification requesting an extension of the term of the permit from June 1996 through September 1999, and expansion of the school to include the second floor (the "Project"), and C. Planning Commission Record on Application WHEREAS, the Planning Commission held an advertised public hearing on the Project on April 12, 1995 and voted 5-0 to recommend that the City Council deny the extension but approve the expansion for the existing term of the permit in accordance with Resolution PCC-94-09(M); and, the Commission further recommended that staff work with the applicant in finding a suitable permanent EastLake location during the upcoming planning efforts for EastLake III, and that staff be given the ability near the expiration date of the permit to grant a modest extension of perhaps six to twelve months provided the school can document that they are actively pursuing a permanent site (see discussion under Alternatives). 1/-7 \\0 B. That such use will not under the circumstances of the particular case, be detrimental to the health, safety or general welfare of persons residing or working in the vicinity or injurious to property or improvements in the vicinity. Current plans for the area are expected to provide additional incentives for and attract industrial users. These users are not expected to be compatible with a school use, and conflicts and/or perceived conflicts between the two different types of land use could be detrimental to implementation of the plans and the health, safety, or general welfare of persons working in the vicinity as well as the children attending the school. The interim expansion of the existing facility under the originally approved permit term should not prove detrimental to either persons in the vicinity or the clients of the school. The second floor was previously occupied by another private school. C. That the proposed use will comply with the regulations and conditions specified in the code for such use. The expansion, as conditioned, will be required to comply with all applicable regulations, codes, and requirements. D. That the granting of this conditional use permit will not adversely affect the general plan of the City or the adopted plan of any govermnent agency. With the approval of the interim expansion and the implementation of all conditions, the use will be consistent with the General Plan and the EastLake PC District regulations. IV. CONDITIONS OF GRANT OF EXPANSION OF PERMIT The City Council hereby grants the requested modification of Conditional Use Permit PCC-94-09(M) to expand current K-12 grade school-type operations at 2400 Fenton Street to include the second floor, subject to the following terms whereby: A. Occupancy. The occupancy of the building by Covenant Christian shall not exceed the staff/student figures provided by the applicant, i.e. 34 staff and 280 total students. B. Recreational Facilities. The applicant shall provide proof of the continued availability of Scobee Park for outdoor recreational purposes prior to expanded occupancy. C. Original Conditions. This permit shall continue to comply with all other original conditions of approval for PCC-94-09 not in conflict with the above, as stated in Resolution No. 17324. II-IP \\\ which City shall impose after advance written notice to the permittee and after the City has given to the permittee the right to be heard with regard thereto. However, the City, in exercising this reserved right/condition, may not impose a substantial expense or deprive Permittee of a substantial revenue source which the Permittee can not, in the normal operation of the use permitted, be expected to economically recover. E. Time to Commence Use. This conditional use permit shall become void and ineffective if not utilized within one year from the effective date thereof, in accordance with Section 19.14.260 of the Municipal Code. F. The applicant understands and acknowledges that the permit shall expire on June 30, 1996, and that the applicant will no longer be allowed to continue in operation after this expiration date. The applicant understands that the remaining life of this permit may not provide the applicant with an opportunity to receive a reasonable return on his/her investment and that the applicant hereby waives any right to such amounts. V. NOTICE OF EXEMPTION The City Council directs the Environmental Review Coordinator to post a Notice of Exemption and file the same with the County Clerk. VI. 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 jurisdiction to be invalid, illegal or unenforceable, this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. The authority of this resolution to use the property in the manner herein permitted shall be suspended if challenged pending final resolution of the challenge. Robert A. Leiter Director of Planning Bruce M. Boogaard City Attorney Presented by (m: \shared\planning\pcc9409 .ce) I/~I/ / il-flI. ~~ ". , I , ' I '" PUBUC,HlWUNG (J'IECKUsr '. '-." , '",:.:,','-,,' "'.-- .. " '/;"3- /nJ """", ' PUBU~ HEARING:-.I>AJE;:- _ ." ,~ ><:::5., ,-.-', _:, ,-,_,[~t~:~. _', "_,,, _., ,~' '_, '.- _,' ___ ~"'> i>':,~__",:'_. : :"" .',_ '-'i'" _.,'-."; SUBJECT ~,~ lh.< O~.. O(L~'1'E-dl-k~.~~~~.;S~ ,:~~~,"~~~~~~~;~i~f~~~ SENT TO STAR NEWS FOR PUBLICATION -, BY FAX V'; ~yrwiD_; BYMAlJ:.' ' PUBLICATION DATE .s It?;" I CIS ' I < ,'''- '''!'''.- - -y- MAILED NOTICES TO PROPERTY OWNERS~ ~:.1. o NO:MA:ItEij;r. , ' PER GC ~54992 Legislative Staff, ConstructionIndusny Fed, 6(36 Greenwich Dr Suite F. San;Diego,:92122~' LOGGED IN AGENDA BOOK ...$ lit::> !Cj,S I " , ' , .- - " ",. I ,.- " -'.-_, COPIES TO: Administration (4) Planning V t/ ,'"-", . I I ,",,;""'" > ;.n, . , Originating Depamnenr /' Engineering Others " . -I'- ,,' :, '~.:- ",,-, City Clerk's Office (2) POST ON BULLETIN BOARDS SPECIAL INSTRUCTIONS: ,,/ .5/1{ (qS I, i I "1 " n '. .- ", 7/93 -55- /1-;-3 'T i,,',- t. NOTICE OF PUBLIC BEARING BY THE CITY COUNCIL OF CHULA VISTA, CALIFORNIA NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL of Chula Vista, California, for the purpose of considering an application for modification of an existing conditional use permit. The application, submitted by Covenant Christian School, requests permission to extend the term of the existing private school for three years (to end September 1999), and to allow the expansion of said school facilities during this time into the second story of the building, increasing enrollment from 208 to 260 children and 34 staff. This project is located at 2400 Fenton Street, within the Planned Community wne (EastLake Business Park). A plot plan and legal description is on fIle in the office of the Planning Department. The Environmental Review Coordinator has determined that the project is exempt from environmental review as a class 1 exemption. Any petitions to be submitted to the City Council must be received by the Planning Department office no later than noon of the hearing date. If you wish to challenge the City's action on this conditional use permit in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to the public hearing. SAID PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL on Tuesday, May 23, 1995 at 6:00 p.m. in the Council Chambers, Public Services Building, 276 Fourth Avenue, at which time any person desiring to be heard may appear. COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT (ADA) Tbe City of Cbula Vista, in complying with the American With Disabilities Act, requests iudividuals wbo require special accommodatiou to access, attend and/or participate in a City meeting, activity or service request sucb accommodation at least 48 bours in advance for meetings aud 5 days for scheduled services and activities. Please contact Nancy Ripley for specific information at (619) 691-5101. California Relay Service is avaUable for the bearing impaired. DATED: CASE NO: May 8, 1995 PCC-94-09 j)/ /i " "- J . m ... ~ PROJECf LOCATION ) ~ CHULA VISTA PLANNING DEPARTMENT (I) APPLICANT: COVENANT CHRISTIAN PROJECT DESCRIPTION: MODIFICATION TO SCHOOL CONDITIONAL USE PERMIT TO AllOW ADDRESS: 2400FENTONSTREET EXPANSION AND EXTENSION OF TIME FOR A PRIVATE SCHOOL. SCALE: FILE NUMBER: NORTH 1" = 400' pec - 94 - 09 ~ //;).-5///-/1 \~ '. ~V?- iiitIM: ~~~~ em Of CHUlA VISTA OFFICE OF THE CIlY CLERK TELEFAX COVER LEITER Telecopier No. (619) 585-5612 DATE: .s/ I 0 ( qs TO: Star News LelZal FAX NO: (619) 426-6346 FROM: ~ ~~ ~~ SURJECf: () ~ \~ j\jlo t::.......- o TOTAL NO. PAGES (including cover): d, PUBUCATION DATE: :sj 13:,/ qs (~~ ,- If all pages are not received, please call Lorna @ (619)691-5041. //~/~ 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 9\9\0 . (6\9) 69\-504\ @"""""'*-..... " .' NOTICE OF PUBLIC HEARING BY THE CHULA VISTA CITY COUNCIL CHULA VISTA, CALIFORNIA NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold a public hearing to consider the following: Purpose of considering an application by Covenant Christian School for a conditional use permit, PCC-94-09, to extend the term of private school for three years and allow expansion of school facilities into second story of building @ 2400 Fenton Street. If you wish to challenge the City's action on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk's Office at or prior to the public hearing. SAID PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL on Tuesday, May 23, 1995, at 6:00 p.m. in the Council Chambers, Public Services Building, 276 Fourth Avenue, at which time any person desiring to be heard may appear. DATED: May 10, 1995 //-/7 " 5950801300 WESTERN SALT CO POBox 149 San Diego CA 92112 5952320500 BEIN ROBERT/FROST WILLIAM/ASSOC Attn: Jack Light ' 14725 Alton Pky Irvine CA 92718 5952321100 CALIFORNIA LAND ASSOCIATES No.1 6480 Weathers Pl #220 San Diego CA 92121 5952320300 990 LANE AVENUE PARTNERS c/o Eastlake Development Co. 900 Lane Ave #100 Chula Vista CA 91914 5952320600 HODSON PARTNERS 14 Corporate Plaza Dr #150 Newport Beach CA 92660 JI -'I ~ 5952320400 MAHONEY TRUST 11-22-89 266 Surf View Ct. Del Mar CA 92014 , 5952321000 , EASTLAKE DEVELOPMENT CO . 900 Lane Ave #100 Chula Vista CA 91914 May 22, 1995 FROM: The Honorable Mayor and City Cowfll. John Goss, City ManagecX:t ~~I Robert A. Leiter, Director of P~nJ.oJ TO: VIA: SUBJECT: Request for Continuance of Public Hearing Regarding Conditional Use Permit - Agenda Item No. 11 The applicant for the above referenced case has requested that the public hearing on this matter be continued to the meeting of June 20. Staff supports this request. //-/c; Tue, May 23, 1995 12:52 PM Page 1 of 1 ~II o.fendlng the Idea. of Indlvldlllll Ubelfy, the Free ""'rket, and a Strong National Defen.. 'r'oung Americans for Freedom r.'::"".''i'. , ...... ".'~~':ti< ~.~;~ . % ~.~.,~ 0 '. .,.... . 't '-~ ~ ':' - '-~ - - I- ,." ~... San Diego County Young Americans for Freedom . P.O. Box 1177' National City, CA 91951-11n . (619) 624-7190 . 23 May 1995 81m1e1E. MaiO Dear Council Members: I strongly urge you to grant Covenant Christian School (CCS) a lease extension at their current Fenton Street location. I speak on behalf of the San Diego County Young Americans for Freedom Board of Directors who unanimously feel this extension would be in the best interests of East Lake and the citizens that reside therein for several reasons. First, as it is around a local church, the social and moml fabric of a commu- nity is built around a school. CCS currently has this thriving prosperous fabric and, as a result, has a profound effect on the East Lake community. Secondly, a vote against the citizens of East Lake and the denial of the lease renewal will have severe implications with regards to moving. For instance, the move will impair CCS' faculty the ability to provide education at a quality that East Lake children need in order to become productive citizens in our community. Finally, we should always be encouraging the education of our youth. This private institute, CCS. has undertaken this task with much success. In fact, with such successs as it outgrew its previous location and now feels right at home on Fenton Street at East Lake. Anytime a private organization enters the realm of educating our youth, they should be nurtured and accommodated. I urge you to fulfill this nurturing role and show your support and concern for education. Sincerely, Samuel E. Antonio Chairman, SD County Y AF /)/;<p CITY COUNCIL AGENDA STATEMENT ITEM TITLE: ,.<1., 3d Ordinance Amending section 2.28.110 of the Chula vista Municipal Code relating to Appoint- ment of Members to the Board of Ethics ITEM 1:2.. MEETING DATE: 5/23/95 SUBMITTED BY: Board of Ethics 4/sths Vote: Yes__No-X- The Board of Ethics is proposing a revision to the current Code of Ethics which is presented for Council's review. The purpose of the revision is to allow for an alternative appointment process should the Presiding Judge of the South Bay Municipal Court Judicial District fail or decline to make an appointment. BOARDS/COMMISSION ACTION: 1995 meeting, voted to ordinance. The Board of Ethics, at its April 24, approve the changes contained in the RECOMMENDATION: Place the ordinance on first reading DISCUSSION: Three members of the Board of Ethics have terms expiring on June 30, 1995, two of which are ineligible for reappointment since they have served two terms. The current Board of Ethics selection process requires the applicants to be interviewed and recommended by the local presiding judge. This process has worked well for many years. However, the last time there was a vacancy on the Board, the then-Presiding Judge, was reluctant to interview prospective applicants and make a recommendation for appointment because of a stated philosophical belief that the judiciary should not be intermeddling in local government. The city staff and Ethics Board continues, however, to support the process because of the additional credibility it gives the Board. In order to avoid a delay in appointment, an alternative selection process has been devised which will allow the Council to interview applicants and make an appointment jointly passed with four affirmative votes. The proposed amendment also adds an eligibility to Board membership constraint by requiring that "No such person mav be appointed as a member. or shall be entitled to retain their membership. if he or she. within the past ten (10\ vears prior to the date of appointment. has been convicted of a crime involvinq moral turpitude. or has been found to have committed a criminal violation of the Fair Political Practices Act ." The Board feels that this adds an ethical standard to their Board that is suitable for their mission. FISCAL IMPACT: N/A C:\ethics\228110.ord /,2-/ /12-2- ~~ ORDINANCE NO. :2..~3tJ AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 2.28.110 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO APPOINTMENT OF MEMBERS TO THE BOARD OF ETHICS SECTION I: That section 2.28.110 of the Chula vista Municipal Code is hereby amended to read as follows: 2.28.110 Organization. A. The Board shall be composed of seven members appointed by the City Council for a term of four years, as prescribed by the provisions of the City Charter and the Municipal Code of the city of Chula vista. Prior to exercisina their authoritv to appoint a person to membership, t~he City Council shall Be E'eEluiFeEi to 13uemit refer for recommendation the list and aualifications of applicants eaRliiEiates to the Presiding Judge of the South Bay Municipal Court Judicial District or his or her desianee. who shall review the list of applicants and their aualifications. and who should select not less than 5 for the purpose of conductina in-person interviews and who shall conduct such interviews. If said Judae or desianee declines or fails to review such applicants. or conduct such interviews. or make such recommendations. than the Council shall interview such applicants themselves personall v. and may make an appointment iointlY passed with four affirmative votes. aflel sealL 'the jUellJe' s reeemmefH:iat.iefl ,.w.i t.h. ref:Jara t.e appeiRtllleRts. No such person mav be appointed as a member, or shall be entitled to retain their membership, if he or she. within the past ten (10 years prior to the date of appointment. has been convicted of a crime involvina moral turpitude. or has been found to have committed a criminal violation of the Fair Political Practices Act. B. The ~oard shall elect from its membership a chairman and a vice-chairman. The term of the chairman and vice-chairman shall be for the period of one year, commencing on July 1 each year. The chairman shall preside at all meetings. In the absence of the chairman at any meeting, the vice- chairman shall preside, and in the absence of both chairman and vice-chairman, the Board members present shall elect a chairman pro tempore for said meeting. C. The city Attorney or an appointed representative shall act as secretary to the Board. The secretary shall cause notice of the meetings of the Board to be kept and distributed. The secretary shall also give appropriate and required written notice of all meetings to all members and persons having business before the Board.' SECTION II: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented and Approved as to form by BrU~ ~~g~ Attorney /~-J /12-1- ~l, May 17, 1995 SUBJECT: The Honorable Mayor and City Coun . John Goss, City Manager.J~ ~ Bob Leiter, Director of Planning ~ GMOC Memo Regarding City Review and Position on SB 1066 (Campbell) - Development: fees; school facilities TO: VIA: FROM: The Growth Management Oversight Commission (GMOC) has submitted the attached memorandum to the City Council requesting that the City oppose the above mentioned legislation. The Legislative Committee concurs in the GMOC's position on this bill, and is currently preparing letters of opposition. No Council action to refer this item is required. (m:\home\planning\gmoc.rec) 13-} RECEIVED MEMORANDUM '95 ItAY17 AS :47 May 16, 1995 CITY OF CHULA VIST; 00 ClEIV<'S OFFICE TO: The Honorable Mayor and City Council FROM: Chairman and Members of the Growth Management Oversight Commission SUBJECT: City Review and Position on SB 1066 (Campbell)- Development: fees; school facilities At its May 5, 1995 meeting, the GMOC reviewed the schools threshold and herd reports from the Chula Vista Elementary School District and Sweetwater Union High School District. Both districts expressed extreme concern oiler pending SB1066 which they indicated could have drastic negative consequences to local school planning, financing and construction efforts. "Several of the GMOC members are past and present educators, and being familiar with the bill's content, the GMOC shares the districts' concern. SB1066 would declare the Legislature's intent to prohibit local agencies from considering the adequacy of school facilities when making land use policy decisions and approving development. It also intends to limit direct and indirect requirements to build school facilities as a condition of approving developments. While the bill proposes to offset those prohibitions through nominal increases in state-mandated school fees charged in conjunction with building permit issuance, authorities indicate those increases are insufficient to cover the costs of needed school construction. In the GMOC's viewpoint, such provisions appear quite contrary to our local commitment to ensure adequate facilities to meet our growing community's educational needs as expressed through our Threshold Standards. Based on the hearing schedule for SB1066, the GMOC is bringing this matter to Council's attention in advance of our annual report. The GMOC urges that Council direct appropriate staff to immediately review the legislation, and consider forwarding a letter of opposition. Sincerely; 1iC~ Chairman, GMOC cc: John Goss Bob Leiter Ed Batchelder (GMOC-94\SB1088.MEM) /3-/ /1:1-4 ~ ~13 CHULA VISTA ELEMENTARY SCHOOL 84 EAST"J" STREET · CHULA VISTA, CALIFORNIA 91910 · 619 EACH CHILD 18 AN INDMDUAL OF GREAT WORTH BOARD OF EDUCATION May 17, 1995 JOSEPH D. CLUIlIHGS, PlLD. SHARON GIlES PAlRlCKA.J.IlD PAMELAB. SMITH III<E A.1IPEYIlER SUPERINTENDENT The Honorable Shirley Horton 1JlIA8.BLPlLD. Mayor of the City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 RE: Senate Bill 1066 Dear Mayor Horton: On behalf of the Chula Vista Elementary School District, I am writing to express our concern over Senate Bill 1066 and request the City of Chula Vista's assistance in defeating this legislation. In its present form, this bill would repeal the holdings of the California Courts of Appeal in the Mira, Hart and Murrietta ceses, and prohibit local agencies such as cities and counties from considering the adequacy and availability of school facilities when reviewing development proposals. If this legislation is successful, the amount that a city or county could impose on a developer for school mitigation would be limited to the statutory fees authorized by Government Code Sections 530BO and 65970, or $1.721square foot for residential, and $.2B/square foot for non-residential development. These amounts are shared with the high school district, pro-rated on numbers of students. Chula Vista Elementary School District's share is $O.76/square foot for residential, and $.13/square foot for nonresidential. If limited to the statutory fees, districts would be unable to provide facilities to serve new growth. This fact is clearly demonstrated by the following illustration: 1. 2000 dwelling units provide students for one school (.3 students per household equals 600 students) 2. Average dwelling unit size is approximately 1400 square feet 3. School mitigation fees for elementary school's is $0.76/square foot for residential ) 3 ,-5 . Mayor Shirley Horton Page 2 May 17, 1995 4. Cost of elementary school in Chula Vista: ~ Olympicview construction bid (8/1194) - Market value of land - Furnishings - Total cost of new school - $5,139,000 1,250,000 300.000 6,689,000 5. Example: 2000 2S.14OO 2,800,000 x.76 $2,128,000 -6.689.000 <$ 4,561,000> Dwelling units Sq. Ft. per unit Total Sq. Ft. Mitigation fee/sq. ft. (Residential) Total mitigation fees Cost of new elementary school UNFUNDED COST' . Given the State's inability to meet the huge backlog of school facilities needs, if districts and local communities are to lose the authority to consider facilities availability when approving new development, then other elements of the historical school financing package must ba bolstered to compensate for this critical loss. Examples of these elements include, but are not limited to, conditioning S8 1066 on passage of legislation which 1) reduces the voting requirement for a general obligation bond to 58% instead of the current two-thirds (SCA 14); 2) sets a cap of at least $4.50/square foot for new residential development. with an annual Inflator; and 3) enacts a $2 billion statewide school bond in March or November, 1996. It is essential that the Legislature commit to establishing a long-term stable funding source to build new schools and modernize old classrooms. In conclusion, the City has always supported the District in assuring that new development be responsible for the provision of schools, along with other public facilities. We ask that this support include contacting local legislators, lobbyists, and the League of California Cities and urging opposition to S8 1066. if enacted, S8 1066 will wreak havoc on schools throughout California. For Chula Vista, its passage will totally eliminate our ability to raise funds locally to finance new schools to serve growth. leaving the children of Chula Vista in an extremely precarious situation. if major new development projects, such as Qtay Ranch and Salt Creek Ranch, are only required to pay statutory school fees, the District simply cannot provide elementary facilities. Thank you for your consideration of this matter. Sincerely, ~Q.S:0U..t LIbla S. Gil Superintendent lSG:KS:dp bb1~ /3/'? COUNCIL AGENDA STATEMENT Item / 'I Meeting Date 5/23/95 ITEM TITLE: Ordinance ..2.~.31 adding Section 17.07.035 to the Chula Vista Municipal Code relating to provisions of the City's Open Space District Regulations SUBMITTED BY: Director of PURI~\Wor"'''~ r' City Attorney \'6llV ';Fl. REVIEWED BY: City Manageul1 ~~ (4/5ths Vote: Yes_No X) As a Charter City, we have adopted a procedural ordinance for administration and maintenance of open space districts, which includes procedures for setting assessments, as contained within Chapter 17.07 of the Municipal Code (MC). Property owners within open space districts are assessed annually via the property tax rolls for upkeep of these districts. The assessments are based on the annual district budgets plus reserves, which can fluctuate significantly from year to year because of budget savings, excess reserves or unanticipated costs. Assessments can thus go up or down each year because of these fluctuations, which has been a concern of the property owners and staff. Due to changes in State law in October 1993, if a majority of property owners protest an increase in the assessment, that increase cannot go into effect, thus hampering the City's ability to have sufficient funds on hand to maintain the districts. To counter having such variations in the assessments from year to year and to minimize this threat of majority protest year to year which could automatically eliminate the increase regardless of need, staff is proposing amendments to the ordinance to allow the City to better stabilize the yearly assessments by allowing the amount collected on the taxes to be different from the amount of the assessment. Staff is also proposing to incorporate an inflation factor in the annual assessment to cover minor cost increases, if needed, that could not be challenged by a majority protest. The public would still have the right to protest the assessment and Council would still have the authority to reduce assessments . This is a companion item to the Open Space District Engineer's reports also on this agenda. The inflation factor proposed will not take effect this fiscal year, but staff is proposing a collectable which is different from the assessment as provided for in this ordinance. RECOMMENDATION: That Council: 1) place the Ordinance on the first reading adding Section 17.07.035 with the alternative 1 language to the Municipal Code relating to changes in the Open Space District Regulations; and 2) take testimony on the ordinance at a public hearing scheduled for June 13 in conjunction with the Open Space District Assessments prior to approving the adoption of the ordinance. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. ;lj-j ~1, Page 2, Item / 'I Meeting Date 5/23/95 DISCUSSION: Each year, by State law, staff presents, for Council consideration and adoption, an annual report of the proposed amounts to be assessed for all open space districts within the City. All property owners within the districts are notified of the proposed assessment and the date and time of the public hearing. Section 22630.5 of the LLA72 provides for a majority protest for any assessment that is increased from the previous year's assessment. If a majority protest is filed (requires owners of more than 50 % of the assessable lands to file written protests which are not subsequently withdrawn) the proposed increase must be abandoned, and the assessment remains at the prior year's assessment, as Council does not have the authority to override the protest. The City has, in previous years, frequently set assessments lower than the actual cost to provide the required services in some districts because of two situations: (1) the district realized savings during the previous year that were not expected and the savings were used to lower the assessment for that next year, and (2) the City deemed it appropriate to collect less than the anticipated cost because of objections raised by the residents as to the estimated costs. Last year, for example, all but three districts were assessed lower than the actual costs, because of previous year budget savings. Eventually, when savings are no longer available to artificially lower the assessment, the assessment will need to be increased to cover the actual costs. A majority of the property owners could protest the increase at that time and require the City to set the assessment at the previous year's assessment amount. The City would thus be penalized for having used the savings to lower the assessment since the new assessment would now no longer cover the cost. In addition, in one district last year, the City collected assessments in anticipation of improvements being accepted by the City and the work paid for by the open space district, but the improvements were not accepted and the cost of maintenance was borne by the developer (Telegraph Canyon Estates, Open Space District 31). The City thus collected enough money in FY 1994-95 to pay for next year's maintenance. In this case, if the current ordinance provisions are used for setting the assessment for FY 95-96, the assessment would be zero since we collected enough money last fiscal year to pay the estimated cost of maintenance for a full year. As an alternative, the City could issue refund checks and then continue to collect the full assessment. This is a costly, time consuming process since it would be difficult to determine who would qualify for a refund since ownerships have changed in many cases. If the "assessment" for FY 95-96 is set at zero, any assessment for FY 96-97 would be an increase and the property owners could protest. With a majority protest, the City would be prevented from assessing any amount in FY 96-97, since the previous year's assessment would have been zero. Staff proposes to make changes to the ordinance to allow setting assessments at reasonable levels, while having the ability to collect a lesser amount. This ordinance change, as outlined on the following pages, would allow for property owners to negate an increase in the assessed amount. It would provide Council discretion if the amount proposed to be collected was more than the previous year's amount collected but less than the assessed amount. PROPOSED SOLUTION The City has adopted the Landscape and Lighting Act of 1972 (LLA72) in the California Streets and Highways Code as the basic provisions of our enabling ordinance. As a Charter City we /'1-~ \~ Page 3, Item..Lf Meeting Date 5/23/95 may make further changes to the LLA72 as part of the enabling ordinance. Under the current ordinance in Section 17.07 of the Municipal Code, the "assessment" is also the same as the amount "collected." Staff proposes to amend this section to provide for the City to set an assessment at one level and to set the collection, on the tax roll, at an amount equal to or lower than the assessed amount. The key to this situation is defining an amount "collectable" on the "assessment", and allowing the amount "collected" to vary as required to fund the district. While an increased "assessment" might be able to be protested by a majority of property owners in the district, the amount "collectable" could not as long as it was equal to or less than the "assessment." As an example, if the actual estimated cost to provide the services for an open space district was $250.00 per property, but the district had savings which allowed the amount needed to fund the district to be $50.00 below this cost, the City could set the "assessment" at $250.00 and the amount "collected" on the property taxes at $200.00. Then if, in the next year, there were not enough savings, the amount "collected" and "assessed" could be set at $250.00. The $250 would still be within the permissible "assessment," thereby a majority protest would not trigger an automatic abandonment of the increase in the amount collected since the assessment would have remained the same ($250). Council could still reduce the amount "collected" if they desired to do so in response to any protest by the property owners. The key, then, is to establish an appropriate "assessment" amount. OPTIONS FOR SETTING ASSESSMENT The general provisions of LLA 72 also allows Council to set a range of assessments upon establishment of a new district or at the time the annual report of assessments is considered. To date, staff has not set a range, but rather has set a single assessment amount per district each year. The assessment has been set at an amount necessary to fund the maintenance for the next fiscal year, often lowering the amount below the actual cost through the use of savings from the current year. Staff proposes two alternative methods for setting the "assessment." Alternative 1 Change the ordinance to allow the Council to set a range, whereby the assessment for each district is set at the previous year's assessment plus an inflator which is the lesser of the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or the change in the estimated California Fourth quarter per capita personal income as contained in the Governor's budget published in January. This change would provide for the assessment to be raised for minor inflation without constituting an increase in the "assessment" subject to a majority protest. These same inflators were initially used under the Gann Revenue Limitation for the City's appropriations limit and sets a precedence for limiting taxes. In order to prepare the information given to the property owners regarding the proposed assessments each year, the index figure needs to be available prior to April in each year. The Governor's budget publishes an "estimated" fourth quarter per capita personal income figure in January of each year. The actual figure is not available until May. If, due to unforeseen circumstances, the cost to maintain the district exceeded the amount allowed, the increase over the assessment could be protested out by a majority of the property owners. Under this option, new districts would have the "assessment" established in the same manner as is currently done, that is, approximately equal to the estimated costs plus a reserve amount. The initial notice to the district of the /zJ~3 ~o.... Page 4, Item /'1 Meeting Date 5/23/95 "assessed" amount would be the estimated cost including an adequate reserve plus a provision for the inflation factor. The Estimated California Fourth Quarter per capita personal income index is calculated by the State of California, Department of Finance, at the Economic Research Unit. Individuals wishing to check that figure may call that Unit at (916) 322-2263. The San Diego Metropolitan Area All Urban Consumer Price Index information is available from the U.S. Labor Department, Bureau of Labor Statistics. The Bureau maintains a 24 hour hot line at (619) 557-6538 and additional information can be obtained at (415) 744-6600. Alternative 2 Set the "assessment" at an amount which would not expect to be exceeded for ten years from the date of district formation. Under this option the allowed assessment would not change unless and until the costs "caught up to" the assessment amount. The Council would then hold hearings on a new assessment which would be proposed to be sufficient for another then years. At that point any increase in the assessment, no matter how minor, would be subject to a majority protest. Under this proposal, the amount assessed would be considerably greater than the cost initially, but the amount collected could be equal to the cost. PROS AND CONS OF EACH METHOD OF SETTING THE INITIAL ASSESSMENT Staff Recommended Option: Initial vear estimate plus inflation factor. (Alternative 1) This procedure would set the initial "assessment" amount at an amount that would provide funds for one year's maintenance plus an adequate reserve of around 50% and then provide for the "assessment" amount to increase each year based upon the lesser of the inflation factors mentioned above. The base year upon which the assessment would be set is the FY 95-96 assessments for existing districts, or the first full year's assessment for district's created after FY 95-96. The first inflator shall be applied in FY 96-97. For example, if the initial estimate to fund the district maintenance in the first year plus the reserve was $100.00, and the inflation rate was 3 percent for the year, this first year's assessment would be $100 and the next year's allowable "assessment" not subject to a majority protest would be $103.00. The following year the allowable "assessment" with the same inflation rate would be $106.09. The change in allowable "assessment" would continue for subsequent years unless a new, higher "assessment" was established by Council after public hearings subject to a majority protest. PROS 1. The "assessment" for the first year will be the estimated cost to fund the district for each parcel, based on the cost of all of the open space being maintained and all development in the district being assessed. 2. Each subsequent year's "assessment" cannot increase more than the lesser of the two inflators which would prevent the "assessment" from being increased significantly without providing for the property owners to fIle a majority protest. /J.j-i \~ Page 5, Item /'1 Meeting Date 5/23/95 3. The amount of "assessment" would not have to be re-established if the "collectable" amount did not exceed the "assessment" for that year. 4. The "collectable" amount could vary each year as long as the amount was less than the "assessment" amount. This would provide staff with the ability to vary the "collectable" amount without facing a majority protest. S. The property owners have the right to protest either the assessment or the amount "collected" to Council and Council can address their issues appropriately at any time. CONS 1. If a large increase in water or other costs occurred which was not expected, the "assessment" would have to be increased to cover the additional cost and the property owners would be allowed to file a majority protest and eliminate the increase. If this occurred, the assessments would not adequately fund the district. 2. As long as costs and assessments stay within the allowable increases, the property owners would not have the ability to force a protest on the "assessment". Initial hi"h annnal chane. no allowable assessment increases without mllioritv orotest (Alternative 2) This procedure would set the initial "assessment" at an amount that would not be expected to be exceeded for approximately ten years from the first "assessment". For example, if the initial estimate to fund the district maintenance in the first year plus the reserve was $100.00 and the estimated actual inflation rate for the next ten years was 5 percent, the "assessment" would be set at $163.00. The "collectable" amount for the first year would be the $100.00. The "assessment" would not change until the "collectable" amount exceeded the "assessment", at which time Council would be required to set a new "assessment". At that time, the new "assessment" would be subject to a majority protest. PROS 1. The "collectable" amount would be less than the "assessment" for a number of years which would prevent the possibility of a majority protest eliminating any increase until the "collectable" amount exceeded the "assessment". This would be anticipated to occur at 10 years from the date the district was established. 2. The "collectable" amount could vary each year as long as it was less than the "assessment" without facing a majority protest. 3. The property owners have the right to protest either the "assessment" or the amount "collected" to Council and Council can address their issues appropriately at any time. CONS 1. The initial required. "assessment" would be significantly larger than the "collectable" amount /Jj~.? \~ Page 6, Item / 'I Meeting Date 5/23/95 2. The "assessment" would have to be increased in approximately ten years even if the inflation rate assumed when the amount was established was not exceeded during the ten year time frame. Setting the second "assessment" to cover another ten year period could result in a majority protest and cause the "assessment" to be increased in smaller amounts every year thereafter. 3. If the increased "assessment" is protested out, staff may have to return 2, 3 or more times until an "acceptable" level is found. STAFF RECOMMENDATION Staff recommends that the Ordinance with Alternative I wording be adopted which will provide for the following: 1. Distinguish" Assessment" from "Collection against assessment". This distinguishes the difference between the "Assessment" and amount "Collectable" and indicates that the "assessment" would be the maximum "collection" allowed without providing an opportunity for a majority protest. 2. Require the "assessment" to increase annually by the lesser of the two indicated inflation factors rather than set the initial amount sufficiently high to cover the cost for ten years. This defIDes how the "assessment" amount is established. 3. DefIDe "Collection" on "Assessment". This defIDes the "collectable" amount as being that amount needed to meet the annual expenditures of the district, including delinquent collections and the permitted reserves, but that is shall not exceed the "assessment." 4. Amount Due At Given Dates During Fiscal Year This indicates that when the tax bill containing the "collectable" amount is paid, that payment shall satisfy the "assessment" obligation. Staff proposes to hold off of the second reading of the ordinance until late June, after the annual assessment meeting with the property owners. Eight to ten thousand notices are sent to property owners informing them of this meeting to discuss their open space assessment. Staff will review this proposed ordinance change with the property owners attending that meeting, and return to Council for the second reading. NOTICES GIVEN Notice of this ordinance will be given to all property owners within the open space districts at the same time as notice of the public hearing for their assessments. The public hearings will be noticed pursuant to Government Code 6063 which requires that notice be published at least once a week for three weeks 10 days before the second public hearing. Staff will mail notice of the hearings, 45 days in advance of the second public hearing. In addition to the assessment /J/-t \~ Page 7, ItemB Meeting Date 5/23/95 information, the notice will include information regarding this proposed ordinance allowing an inflation factor and defining assessment separately from collectable. The notice will indicate that the June 13th public hearing, in addition to considering the levy of assessments, will be for the purpose of taking testimony on the proposed Ordinance (under a separate report). Staff will also notify the residents of an information meeting to be held by staff in early June. FISCAL IMPACT: All costs associated with the administration of open space districts are paid by the various open space districts with the payment of property taxes. Adoption of the ordinance would provide for amounts collected to be potentially less than the amounts assessed. It may also prevent some majority protests that would prevent either the district from being underfunded or the City to subsidize the district. If the district is underfunded, the maintenance level would have to be reduced to below that which is necessary to appropriately maintain it. M:home\engineer\agenda\0895s.sms File OS-OOl )l1-7/;4-$ ~ ORDINANCE NO. .2/,3/ AN ORDINANCE OF THE CITY OF CHULA VISTA ADDING SECTION 17.07.035 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO LANDSCAPING ACT PROVIDERS SECTION I: That Section 17.07.035 is hereby added to the Chula Vista Municipal Code to read as follows: Sec. 17.07.035 Landscaping Act Providers. A. Distinguish Assessment from Collection Against Assessment. There is, under this assessment district procedure applicable in the City of Chula Vista, a difference between the amount of the assessment imposed against any parcel of property, and the amount which may be collected against that assessment. The purpose of setting the assessment is to give the property owner notice of the maximum costs which may be collected, and for the purpose of permitting a majority protest proceeding on the assessment, but not on the collection. " Assessment", as used in these proceedings, shall mean the maximum amount collectable in a given year under the procedures allowed by this Chapter. B. Amount of Assessment. (Alternative 1 language) 1. Notwithstanding the costs which may be included in an assessment and Section 22569 through 22570 of the Streets and Highways Code, the assessment may, but is not required to, be set in the initial year of the district's existence at an amount which is expected to be equal to the estimated costs of operating the district, plus a reserve for unanticipated expenses in accordance with Section l7.07.030. After the initial year of the district's existence, the assessment shall be the prior year's assessment increased or decreased by an inflation factor which is the lesser of (1) the January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or (2) the change in estimated California Fourth Quarter Per Capita Personal Income as contained in the Governor's budget published in January. 2. For existing districts the base year upon which the assessment is set is the 1995/96 Fiscal Year. For districts created cifter July 1, 1995, the base year assessment shall be the first full year's assessment. The inflation factor shall be applied first to either the 1996/97 assessments or the second full year for new districts. 1 )t/~ 9 \~ (Alternative 2 language) NotwithstaruJing the costs which may be included in an assessment aruJ Section 22569 through 22570 of the Streets aruJ Highways Code, the assessment may, but is not required to, be set at an amount which is not greater than the estimated cost plus reserves that is expected to be the highest annual charge in a ten-year period following the setting of the assessment with the least fluctuation in the amount collected annually. C. Collection on assessment. Notwithstanding Section 22572, the amount which the City may collect on each assessment by charge on the tax roll, shall be that needed to meet the annual expenses and expenditures of the district, including delinquent collections and the permitted reserve allowed under Section 17.07.030, but in no event in an amount greater than the amount of the assessment. D. Amount Due at Given Dates During Fiscal Year. Until a property owner receives a tax bill properly demonstrating a lower amount due on the assessment than the amount of the assessment, the amount due on the assessment shall be assumed to be the amount set forth in the assessment. After receipt of a tax bill that includes a lower amount due on the assessment for a given fIscal year, the lower amount due on the assessment shall when paid satisfy the assessment obligation for that fiscal year. SECTION II: This section shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by John P. Lippitt, Director of Public Works ~:\sbared\attomey\1707035. 2 ;1/, /tJ \~ COUNCIL AGENDA STATEMENT Item IS- Meeting Date OS/23/95 SUBMITTED BY: Resolution Il C\ OS amending Chapter VII, Section B, of the City's Master Fee Schedule to establish new fees for various Aquatic programs and activities Director of Parks and Recreation~ City Manager fil: (4/5ths Vote _ No ..xJ ITEM TITLE: REVIEWED BY: Next week, staff will be presenting to Council a balanced budget proposal for 1995/96. The proposed budget will contain strategies for significantly reducing costs without impacting "core" service levels, along with generating additional revenues, in lieu of even further cutbacks, which could start impacting "core" service levels. This report brings forward, in advance, one of the revenue proposals contained in the FY 95/96 balanced budget. While it is cumbersome at this time to separate aquatic revenue from the whole budget package, the Parks and Recreation Department faces an impending deadline of May 24 for the publication of the parks and recreation brochure. Information contained in the brochure describes the registration process for the summer swimming classes and any affiliated fees. Adjustments in fees would need to be implemented before that date. One of the proposed fee increases for additional revenue is in the City's Aquatic programs. Types of fees include Daily Admission Fees, Annual Swim Pass Fees, and Swim Lesson Fees for various instructional swimming classes. This report will describe the current fee structure in aquatics and proposals for fee increases. STAFF RECOMMENDATION: That the Council adopt the Resolution to amend Chapter VII (Recreation Programs/Facilities), Section B (Programs) of the Master Fee Schedule to allow for: 1. An increase in fees for the Daily Admission charge for a child and a senior, from $0.75 to $1.00; and 2. An increase in fees for the Daily Admission charge for an adult, from $1.00 to $1.50; and 3. An increase in the Learn to Swim lesson fee for a child from $18.00 to $22.00; and 4. An increase in the Learn to Swim lesson fee for Parent and Tot and Tiny Tot from $19.00 to $22.00; and 5. An increase in the Learn to Swim lesson fee for an adult from $20.00 to $24.00; and 6. A restructuring of the Swim Pass from an annual charge to a 20 swim pass, with adjusted fees; and {AI13's. feeincrs.a13 -05-18-95] ~c;-l \11- Item ) r- Meeting Date OS/23/95 7. The set-aside of 5 % of any new revenue accrued from the amended fees to structure a scholarship fund (financial assistance) for residents who are unable to afford the aquatic charges. BOARDS/COMMISSIONS RECOMMENDATION: The Parks and Recreation Commission discussed proposed revenue sources at its regular meeting of April 20, 1995. The minutes of the April 20, 1995 meeting are "draft" minutes, awaiting Commission approval on May 18, 1995 (Attachment "A"). The Commission may be making changes to these minutes, to clarify the intent of their recommendations. Staff will make a verbal report to the Council of the Commission recommendations at the May 23, 1995 Council meeting. The following represents the Parks and Recreation Commission recommended increases in fees (6-0), based on staff's proposed revenue information the Commission received for their April 20 meeting: 1. Raise aquatics Walk-in (Daily Admission) charge by $0.25, and charge children $1.00 and adults $1.25; and 2. Recommend adults pay $1.00 for a Walk-In (Daily Admission) charge when accompanied by a child; and 3. Raise Learn to Swim fees from $18.00 to $20.00 for a child, and $20.00 to $22.00 for an adult. Since the Commission's meeting on April 20th, during Department budget preparation, several of the revenue sources recommended by staff have been changed. New proposals include a change in the swim pass structure. Staff will be presenting the new staff recommended revenues to the Commission at their meeting of May 18, 1995. DISCUSSION: The aquatics fee increases discussed below, are being proposed as a source of additional revenue for the City to partially offset operational and staff costs. General tax dollars subsidize aquatics operations, and that would still be the practice under the fees being recommended. Also, these fee modifications are being proposed to bring the City of Chu1a Vista into the same price range as other cities in the County. These fee increases are being proposed at this time, rather than during the normal budget review, due to an urgency to establish new fees prior to the printing and distribution of the Parks and Recreation Department's Summer Activity Brochure. Since a large number of the City's swimming classes are offered during the summer months, any fee increases need to be publicized and would be in effect during the summer season when the pools are at peak operation and participation. The new fees, if approved, would be publicized in the Department's Summer Activity Brochure, which is scheduled to be finalized for printing on May 24. A notice of this meeting and the proposed fees has been posted at the City pools. Throughout this year, staff has been developing a plan to generate revenue through a variety of sources. The revenue plan that Council will consider is in response to declining resources and the necessity to develop new revenues to support municipal recreation. {AIl3's - feeincrs.al3 -05-18-95] 2 \~.~ ~ Item ) ~ Meeting Date OS/23/95 In developing the revenue plan, staff evaluated every activity conducted by the Department. This evaluation revealed that the Aquatic Section is (1) the largest General Fund supported section in the Recreation Division, and (2) the fees charged to defray aquatic operation and maintenance have not been increased for years. The main reason fees have remained static over the years is because the Ciry has attempted to keep aquatic services affordable and accessible to its residents. As a matter of fact, in 1992, Council approved a non-resident fee requiring all non-residents to pay 50 % more than Chula Vistans for aquatic services. This fee was an attempt to defray escalating utility costs (water, heat, electricity and chemicals) and avoid passing these costs on to our residents. This year, due to severe budget constraints, the Department is faced with developing new revenue sources to help reduce expenses. The following analysis will illustrate: (1) Chula Vista's fees are very low, (2) the proposed fee increases will fall within the fees charged by other cities, and (3) there is a significant potential to defray expenses through revenue, and (4) the City will continue to help residents who can't afford our services to secure scholarships (financial assistance), Staff is sensitive to the situation that an increase in fees could place aquatic services out of the reach of some participants. To mitigate this circumstance, staff is recommending that 5 % of the new revenue accrued from the increase be set aside to offer scholarship to those in need. The Departtnent already offers a scholarship fund for the residents who participate in classes. Back2round In determining the proposed fee adjustments, staff surveyed eleven cities in the County that have municipal pools. These cities include: Carlsbad, Coronado, El Cajon, Escondido, La Mesa, National City, Oceanside, Poway, City of San Diego, San Marcos, and Vista. Dailv Admission Fees The existing walk-in fee at the pool of $0.75 each, for adults, children and seniors, has been in the Master Fee Schedule since the summer of 1983. Prior to that time, the daily fee was $0.50 per person for children and seniors, and $1. 00 for adults. Staff is recommending an increase in fees as follows: EXISTING PROPOSED Daily Admission - Child $0.75 $1.00 Daily Admission - Adult $0.75 $1.50 Daily Admission - Senior $0.75 $1.00 These proposed fees for children are equal to or less than the fees charged in neighboring communities. A bar chart depicting Chula Vista's current ranking in the County for fees is Attachment "B". The fee [AIl3's . fee incrs.a13 .05.18-951 3 \c;.-3 ~ Item I~ Meeting Date OS/23/95 survey also revealed the price differential between adult fees and children/senior fees is $0.50 in 80% of the cities that charge separate fees. Swinuning Pool Passes The existing Annual Swim Pass fees at the pool have been in place since the summer of 1986. The Annual Swim Pass entitled users to unlimited swim privileges, at a reduced rate. Staff is recommending that a "Punch Pass" be implemented in place of the existing annual pass. The annual pass system is designed to offer a discount to the frequent pool user. However, in the survey of other County cities, it is quite apparent that Chula Vista charges a swim pass fee that is substantially lower than the rest of the cities. Staff believes it would be more appropriate to restructure the swim pass system to still offer a discount, but not totally subsidize the frequent pool user. Under the restructuring, staff is recommending to delete the Family discount because pool users will now realize an equitable discount by purchasing a child, adult or senior punch pass. The previous Annual Swim Pass, because anyone could use it, made it difficult to check if the pass was being misused. It was apparent the City was losing revenue with an Annual Family Pass. The punch pass would allow 20 admissions to the pool, and would be priced to offer a discount from the Daily Admission fees proposed above (Children and Seniors would be receiving a 25 % discount; Adults a 17% discount). Pass prices are recommended to be as follows: EXISTING/ANNUAL PROPOSED/PUNCH PASS Swim Pass - Children $15.00 $15.00/20 admissions Swim Pass - Adult $40.00 $25.00/20 admissions Swim Pass - Family $50.00 None Swim Pass - Senior $30.00 $15.00/20 admissions The proposed pass fees are also comparable to what other cities in the county are charging (Attachment "C"), although only 50% of the other cities surveyed offer similar discounted passes and fees (the City of San Diego currently has a punch pass system in place for over 10 years [$35.00 for 20 swims]). Learn to Swim Classes (instructional) Increases in the fees for instructional swinuning classes are also being proposed. The fee (for each session) entitle the participant to 10 swim lessons. Current fees are: [A1l3's - fee incrs.a13 -OS-I8-9S] 4 \S-~ \f - Item / ~ Meeting Date OS/23/95 EXISTING PROPOSED Parent & Tot Classes $19.00/session $22.00/session Tiny Tot Classes $19.00/session $22.00/session Learn-to-Swim Classes $18.00/session $22.00/session (child, ages 6-16) Advanced Learn-to-Swim $18.00/session $22.oo/session Classes (child, ages 6-16) Adult Lessons' $20.00/session $24.oo/session Parent & Tot and Tiny Tot class fees would increase by $3.00 per session, and Learn-to-Swim and Advanced Learn-to-Swim, and Adult Lesson class fees would increase by $4.00 per session. Learn to Swim fees have remained unchanged since a fee increase was adopted in 1989. At that time, fees were increased by $2.50 per session for Parent & Tot and Tiny Tot classes, and $2.00 per session for Learn-to-Swim and Advanced Learn-to-Swim classes. In the survey of ten other cities in the county, only two cities (Oceanside and Poway) charge less than $22 per session for classes (Attachment "0"). The average cost of classes in the other cities surveyed was $23.86. The two cities operating programs in the south bay in addition to Chula Vista both charge higher fees; National City currently charges $25 for instructional classes, and the City of San Diego charges $26 per session. Additional Revenue Throll"h Non-Resident Fees On August 25, 1992, the City Council approved a policy to charge non-residents a higher fee for various Parks and Recreation programs. This was part of a Revenue Enhancement Plan that the Parks and Recreation Department developed. The Council approved the implementation of a non-resident policy and fee schedule implementing a 100% fee for park reservations, building rentals/leases, and ballfield rentals; a 50 % fee for swim-related charges, and a 25 % fee for contractual recreation classes. Any fee increases approved by Council would automatically raise non-resident fees by 50% over resident fees. Contractual classes only; not in Master Fee Schedule. [A113's - fc:eincrs.aI3 -05-18-95] 5 ,e; - s; ~ Item J ~-- Meeting Date OS/23/95 FISCAL IMPACT: Staff has calculated the additional revenue in 1995/96 which could be expected from a fee increase. The basis for calculation is past revenue receipts and attendance at both pools. Potential revenue may be: Daily Admission Fee Learn to Swim Fee Swim Pass FY 95/96 $22,000 $30,300 $40.000 $92,300 Revenue accrued from the non-resident fees will bring in additional funds in an estimated amount of $40,000. The additional revenue accrued will be new revenue to the General Fund which will still partially offset the costs the Department incurs in pool operations and staff costs, but there will be less of a General Fund subsidy for these operations. In addition, the fee increases will bring Chula Vista into parity with other San Diego County aquatic fee charges. Attachments: "A" - Minutes of the Parks and Recreation Commission of April 20, 1995 "B" - Bar Chart - Chula Vista Ranking with County Cities on Daily Admission Fees "c" - Bar Chart - Chula Vista Ranking with County Cities on Swim Pass Fees "D" - Bar Chart - Chula Vista Ranking with County Cities on Learn to Swim Fees (A1l3's - fee men.at3 - OS-lS.9S] 6 \C; -lo '\~ RESOLUTION NO. /79 tps-' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER VII, SECTION B, OF THE CITY'S MASTER FEE SCHEDULE TO ESTABLISH NEW FEES FOR VARIOUS AQUATIC PROGRAMS AND ACTIVITIES WHEREAS, the proposed budget proposal for FY 95/96 will contain strategies on generating additional revenues for City operations; and WHEREAS, while it is cumbersome at this time to separate aquatic revenue from the whole budget package, the Parks and Recreation Department faces an impending deadline of May 24 for the publication of the parks and recreation brochure; and WHEREAS, information contained in the brochure describes the registration process for the summer swimming classes and any affiliated fees and adjustments in fees would need to be implemented before that date; and WHEREAS, one of the proposed fee increases for additional revenue is in the City's Aquatic programs; and WHEREAS, types of fees include Daily Admission Fees, Annual Swim Pass Fees, and Swim Lesson Fees for various instructional swimming classes. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby amend Chapter VII (Recreation Programs/Facilities), Section B (Programs) of the Master Fee Schedule as follows: liB. PROGRAMS 1. Swimming a. Aquatic Classes Fees for various aquatic Parks and Recreation Department programs and classes shall be as follows. Non-Resident surcharge is 50%: Re8ideat .....~du.Jtly8Hdt WINeR Re.ide. ~ 1. :8egitmers ~ t27.0Q/parlieipllRl 8\ nlBfliittg /partieipftflt 2. }At .eeea ~l 8JparHeipftflt $27. QQJjlartieiJ3ftBt S"illllBiag /5/7 ~~ J" Ti~. TeaJ $19Jjtftftieipant l:2g.9QIi18faeipRnt 8'I.":immiBg 1. Pareftt8 ftBa tetil $19,~air U8.OOIp,.;r 8\";im.mi:eg Parent & Tot Classes $22.001 session Tiny Tot Classes $22.001 session Leam-to-Swim Classes $22. 001 session (child. a~es 6-16) Advanced Leam-to-Swim Classes (child. $22.00/session ages 6-16) b. Pool Passes .o"...BBl:la:l: Pamil y .'.lI\:Ilt $59 8eaior $30 $~9 Chilli $15 Punch Pass Child: Adult: Senior: $15.00/20 admissions $25.00/20 admissions $15.00/20 admissions Daily: $.~ fler flersea Child: ll.OO Adult: ~ Senior: tLOO 2. Other Fees for Parks and Recreation Department activities and classes shall be set in consideration of the City's full cost including overhead. Non-Resident surcharge for activities and classes will be 25 %. " c ) / t I .' ~ IS,~ ~,., \. Bruce M. Boog Attorney Presented by Jess Valenzuela, Director of Parks and Recreation s\aquatic.fee /.>~ 1 /IS-IO DRAFT Attachment "A" mY OF CHULA VISTA PARKS AND RECREATION COMMISSION April 20, 1995 PAGE 3 6. The Chair asked if the Baldwin Company is requesting park credit for the two acre parks. Mr. Aden replied that the parks have been changed to 3/4 - 1.5 acre parks and the Baldwin Company is requesting park credit for them. 7. Commissioner Alevy expressed concerns about the maintenance of the parks. Mr. Aden explained that the park maintenance would be shared by the City and the Baldwin Company. 8. Mr. Jamriska informed the Commission that there will be three alternative plans for the Commission to review. One plan is the Baldwin Company's suggested plan, one alternative is the Department's suggested plan, and one plan has not been reviewed yet. 9. Commissioner Sandoval asked if the Baldwin Company would still build the small parks even if they did not receive park credit for them. Mr. Aden replied that it had not been determined yet. 10. Director Valenzuela interjected that the Baldwin Company should prepare a trend analysis to determine what kind of recreation facilities should be placed in the project, based on the demand of the people there. Director Valenzuela also commended the Baldwin Company for making the changes suggested by the Department and the Commission. B. Department Budget Principal Management Assistant Nancy Woods discussed revenue resources for the Parks and Recreation Department Budget. Ms. Woods explained that the City Manager is requesting budget cuts of 10%. Ms. Woods discussed the Department staff recommendations for revenue resources. The Parks and Recreation Commission made the following revenue resource suggestions: 1. Raise the swim fees from $.75 to $1.00 for children and $1.50 for adults. A discount could be offered for adults, when accompanied by a child. 2. Soccer teams should pay more for field usage, due to the fact that they tear up the field more than other sports. Motion to reject staff's recommendation in creating the ballfield maintenance surcharge, and instead charge outside leagues to pay $100 per team for the use of the City facilities. MSUC Alevy / Carpenter 4-2 (Commissioners Hall and Sandoval opposed) ;.5'-// DRAFT DRAFT Attachment "A-2" CITY OF CHULA VISTA PARKS AND RECREATION COMMISSION April 20, 1995 PAGE 4 Motion to approve staff recommendation to raise the aquatics swim fees by $.25, and charge children $1.00 and adults $1.25. MSUC Sandoval / Carpenter 6-0. Motion to recommend that adults pay $1.00 for swim fees when accompanied by a child. MSUC Alevy / Palma 6-0. Motion to support staff's recommendation to raise the Learn to Swim fees from $1S- $19 per lesson; to $20 for children and $22 for adults. MSUC Helton / Palma 6-0. Motion to add Marina View, Terra Nova, and Discovery Parks to the picnic shelter rental system. MSUC Sandoval / Hall 6-0. Ms. Woods discussed the remainder of the Budget Transmittal. Motion to support the Staff Workload Plan for FY 95/96, including the Category 1, 2, and 3 projects. MSUC Hall! Carpenter 6-0. Commissioner Carpenter left the meeting at 9:35 p.m. The Chair called for a five minute break at 9:35 p.m. C. Term of Commissioner Hall The Commission agreed that Commissioner Alevy will draft a letter and fax it to the Commission Secretary to be typed on City letterhead. Commissioner Alevy will then sign the letter and send it to the Council. D. Coyote Canyon State Park Issue 1. Commissioner Sandoval offered to draft a letter to the State Parks and Recreation Department stating that the City of Chula Vista Parks and Recreation Department is against having all-terrain vehicles in the canyon. The Chair will sign and send the letter. E. Otay Gymnasium Project Report Motion to table the Otay Gymnasium Project issue to a later date. MSUC Helton! Alevy 5-0. The Parks and Recreation Otay Gymnasium Sub-Committee agreed to discuss this issue at the next meeting, which will be held on Thursday, May 4, 1995, at 6:30 p.m. in the Parks and Recreation Department Conference Room. /y/;2, DRAFT ATTACHMENT B-1 SWIM FEE COMPARISONS - EXISTING CHULA VISTA - SAN DIEGO COUNTY CITIES City of San Diego Carls bad PoWllY EI Cajon ~ National City o San Marcos La Mesa Coronado Escondidp Oceanside ChulaVislll Vista $0.00 $O.~ $1.00 $1.~ $2.00 $2.~ $3.00 $3.~ DAILY ADMISSION - ADUL TjCHILD 15'13 ~ - CHILD- DOLLARS ~ ADULT - DOLLARS ATTACHMENT C-l SWIM FEE COMPARISONS - EXISTING CHULA VISTA - SAN DIEGO COUNTY CITIES - CHILD - DOLLARS ~ ADULT - DOLLARS City of San Diogo ~Ii National City ~one one La Mesa ~one one Eocondido ~one one Oeeanstele ~one one ~ Carlo bad ~one one a San Marcos is:~ Viola Coronado EI Cajon Poway 12.00 i Chula Viola $3.33 i $0.00 $3.00 $6.00 $9.00 $12.00 $HI.OO $18.00 $21.00 $24.00 $27.00 $30.00 SWIM PASS - ADULT/CHILD - PER MONTH )~/'I ATTACHMENT D-1 SWIM FEE COMPARISONS - EXISTING CHULA VISTA - SAN DIEGO COUNTY CITIES National C~y Carls bad C~ of San Diego San Marcos ~ () La M.sa Escondido Coronado Chula Vista EI Cajon Poway Oceanside Vista .00 .$2:1.00 $0.00 $!l.00 $10.00 $1 :1.00 $20.00 $2:1.00 $30.00 $3:1.00 SWIM LESSONS-ADULTicHILD-PER SESSION /.5'/> /15-/Cp - CHILD - DOLLARS ~ ADULT - DOLLARS CITY OF CHULA VISTA THE MAYOR AND MEMBERS OF THE COUNCIL SYLVIA ARNETT. 425 Naples Street, Chula Vista, CA. 91911 420-6999 I have lived in Chula Vista for 27 years and during those years have worked and supported this community in any way it has been possible because, this is my home. 24 years ago I was medically diagnosed as having M.S. an incurable disease of the central nervous system. As walking was no longer a choice for me, to maintain any kind of life or physical health, I started to swim at a city pool 5 to 7 days a week. 24 years ago the City opened its pools for recreation swim three months a year. That first year after the pools closed at the end of summer, I approached the City's Aquatic Director and asked for access to a pool on a daily basis through the winter months. My request was accommodated provided someone was available to lifeguard, I was to telephone each day for an agreed time, this I did daily whatever the weather. Through persistence, the following summer Chula Vista's first Summer only, adult lap swim program came into being, one hour a day 5 days a week at Loma Verde pool. The following winter, I and two other swimmers approached the City for a winter lap swim program and it was launched on the proviso that we could find 10 swimmers willing to sign up and pay 20 dollars each to cover the cost of the lifeguard. From those small beginnings [one person] I have watched the adult lap swim program grow, creating not only an affordable health maintenance program for all members of our community but also providing jobs in the work place. My physical situation has deteriorated, I am now confined to a wheelchair, daily affordable access to the City's adult lap SWlm program is imperative for me to maintain any kind of bodily function. I ask you to PLEASE look once again at this 600 percent increase in price, with the added cost for my aide, I am barred access to a public facility and program that I NEED. Most sincerely, ~1.,jCl.- ~. Sylvia Arnett /~/7 COUNCIL AGENDA STATEMENT Item / t? Meeting Date 5/23/95 ITEM TITLE: Resolution J 79 tfJ? Approving the Engineer's report for the FY 1995-96 spread of assessments for Eastlake Maintenance District No.1, declaring the intention to levy and collect assessments and setting June 13, 1995 at 6:00 p.m. and July 11, 1995 at 6:00 p.m. as the dates and time for the public hearings. SUBMITTED BY: Director of Public Works ~ . Director of Parks and Re ati~ (4/5ths Vote: Yes_NoX) City Manageuq ~ ...,. Based upon the advice of the City Attorney, agenda items / (" I? and J 8'" have been separated due to conflict of interest concerns. One Couocil member owns property subject to the proposed assessment in this district. Council should note that agenda statement J 'I gives all background information and details on open space districts in general which is applicable to this item, but does not include specific information on Eastlake Maintenance District No.1 (ELMDl). REVIEWED BY: RECOMMENDATION: That Council adopt the resolution approving the Report, direct the City Clerk to publish the Resolution of intention pursuant to Government Code 6063, set the dates of the public hearings on the assessments for Juoe 13, 1995 at 6:00 p.m. and July 11, 1995 at 6:00 p.m. DISCUSSION: Bad'''l'Ouod This agenda item is the yearly resolution to assess for open space maintenance within Eastlake Maintenance District Number 1, a City open space district, located along East H Street and Otay Lakes Road, adjacent to "SR 125" (Attachment A). Table 1 relates the present year's assessment to the proposed assessment for the Fiscal Vear 1995/96. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD Proposed Proposed Assessment Estimated FY 93/94 FY 94/95 FY 95/96 FY 95/96 % Increase FY 95/96 FY 95/96 Assmnt/EDU Assmnt/EDU Assmnt/EDU Collection/EDU or Cost/EDU Revenue Decrease(2) ELMO #1(1) $190,600 Eastlake I $6.98 $9.31 $9.31 $4.34 0% $9.10 Easltake Greens 10.64 14.08 14.08 14.08 0% 15.24 OTC 0 125.95 125.95 77.31 0% 126.20 Salt Creek 1 6.98 168.31 168.31 158.70 0% 161.31 TC Channel(2) 0 6.16 24.00 16.74 270% 16.74 (1) All areas share in the cost of 01ay Lakes Road medians and off-site parkways. (2) Portions of Eastlake I BC and Eastlake Greens are in benefit area. Typical assessment for a single family home did not exceed $1.24 (.2 x $6.16). /~-/ 0~ Page 2, Item /J, Meeting Date 5/23/95 Staff recommends that the assessments for each of the areas, excepting the benefiting area for Telegraph Canyon Channel, remain the same as FY 94/95. In each of these cases, staff recommends an annnal collectible as shown in Table 1. Due to prior and current year savings, staff recommends collection of an amount less than the assessment by utilizing excess monies in the fund (reserve, savings, interest). The reserve under this recommendation will be 53%. Telel!raoh Canvon Channel Portions of Eastlake Business Center and Eastlake Greens drain into the channel. In July of last year a new benefit area (Zone E) was established within ELMD 1 to pay for the channel maintenance. Property owners were notified of the estimated cost of maintenance (prorata share) for the channel between Eastlake and Rancho del Rey SPA 3 and were provided the opportunity to protest. As only a portion of the channel (phase 1 of 3) was ready for turnover, Council levied an assessment of ouly $6.16 per EDU for FY 94/95. Additional improvements (Phase 2) are ready for turnover for FY 95/96. Staff recommends the assessment be $24 per EDU representing the estimated ultimate annnal cost for all three phases of the channel improvements. As any increase in assessment is subject to a majority protest, staff recommends serting the assessment, which is the amount property owners receive as notice, at the higher amount of $24 (cost/EDU) not the amount of revenue needed ($16.74). Alternatively, if staff set the assessment at $16.74, it would be subject to majority protest for the increase from $6.16 anyway. The following year it might be necessary to increase the assessment again if savings were not realized to reduce the collectible below the assessment set for FY 95-96. If there is strong opposition at the public hearing, Council could still set the assessment at a lesser amount although $24 per EDD is needed to provide the recommended maintenance when all three phases have been turned over to the City. Cost of the formation of Zone E is included in the collectible amount, amortized over 5 years, per the City/Eastlake agreement (Resolution 17588) which allows the City to reimburse Eastlake Development Company for this cost. FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public Works, and Data Processing. Contractual costs are outlined in Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. RDB:dv Attachments: A District Map B Estimate of Cost F:\HOMB\BNc:BNEER\AGENDA\OSELMDl.DDS /~'2 ~ RESOLUTION NO. J79t9(, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR THE FY 1995-96 SPREAD OF ASSESSMENTS FOR EASTLAKE MAINTENANCE DISTRICT 1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11, 1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, these reports were prepared by the city Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 13 and July 11, 1995, in accordance with the Landscaping and Lighting Act of 1972. The report covers Eastlake Maintenance District 1; and WHEREAS, the Parks and Recreation Department conducted an information meeting for all property owners within this district in January at which time staff explained the proposed budget; and WHEREAS, the proposed assessment for Fiscal Year 1995-96 is as follows: TABLE 1 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD Proposed Proposed Assment Estimated FY 93/94 FY 94/95 FY 95/96 FY 95/96 % FY 95/96 FY Assmnt/EDU Assmnt/EDU Assmnt/EDU Collection/EDU Increase or Cost/EDU 95/96 Decrease(2) Revenue ELMD #1(1) 190,600 EastIake I $6.98 $9.31 $9.31 $4.34 0% $9.10 Eastlake Greens 10.64 14.08 14.08 14.08 0% 15.24 OTC 0 125.95 125.95 77.31 0% 126.20 Salt Creek I 6.98 168.31 168.31 158.70 0% 161.31 TC Channel" 0 6.16 24.00 16.74 270% 16.74 (1) All areas share in the cost of Otay Lakes Road medians and off-site parkways. (2) Portions of Eastlake I Be and Eastlake Greens are in benefit area. Typical assessment for a single family home did not exceed $1.24 (.2 x $6.16). 1 II, -3 \~\t NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve the Engineer's report to declare its intention to levy and collect assessments for the FY 1995-96 for the spread of assessments for Eastlake Maintenance District 1, a copy of which is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Council does hereby set June 13, 1995 at 6:00 p.m. and July 21, 1995 at 6:00 p.m. in the City Council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessment. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish said assessment pursuant to Government Code Section 6063. John P. Lippitt, Director of Public Works f:J Presented by r , Clty Attorney C:\rs\OS10eng.rep . 2 Jt -1 \?'" . I .. . I I I I I I. I II I .' . .. . 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J ;j t-l f , ti> ~ f .s; ~ ~ f-.\- COUNCIL AGENDA STATEMENT Item / 7 Meeting Date 5/23/95 Resolution / 71t:J? Approving the Engineer's report for the FY 1995-96 spread of assessments for City Open Space District No.1, declaring the intention to levy and collect assessments and setting June 13, 1995 at 6:00 p.m. and July 11, 1995 at 6:00 p.m. as the dates and time for the public hearin~s. SUBMITTED BY: Director of Public Work<.J Director of Parks and R~~ City ManagerJG1 ~ ~ Based upon the advice of the City Attorney, agenda items / t, J 7 and I g'" have been separated due to conflict of interest concems. One Council member owns property subject to the proposed assessment in this district. Council should note that agenda statement 19 gives all background information and details on open space districts in general which is applicable to this item, but does not include specific information on Open Space District 1. ITEM TITLE: REVIEWED BY: (4/5ths Vote: Yes_NoX) RECOMMENDATION: That Council adopt the resolution approving the Report, direct the City CIeri< to publish the Resolution of Intention pursuant to Govemment Code 6063, set the dates of the public hearings on the assessments for June 13, 1995 at 6:00 p.m. and July 11, 1995 at 6:00 p.m. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance within Open Space District Maintenance District Number 1 located between East H Street and Telegraph Canyon Road, east of Paseo Ranchero (see Attachment A). Table 1 relates the present year's assessment to the proposed assessment for Year 1995-96. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTffiLE AND % CHANGE FY 93-94 FY 94-95 Proposed Proposed FY Assessment FY95-96 FY95-96 FY 95-96 95-96 % Increase Cost/EDU Revenue Collect/EDU or Decrease OSD No. 1 $78 $77 $77 $49 0% $81 $32,411 El Raocho del Rey Units 1-4 Staff recommends that the assessment of $77 per EDU remain the same as FY 94/95. This is less than the cost of $81. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount of $81. Staff recommends a collection of $49 per EDU utilizing the fund balance to make up the difference ($32). Funds are available to do this because of prior year savings mostly in contractual services. The reserve under this recommendation will be 55%. ".~---- /7-/ ~ ---- Page 2, Item-.l2 Meeting Date 5/23/95 FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public Works, and Data Processing. Contractual costs are outlined in Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. Attachments: A District Map B Estimate of Cost M:\HOME\ENOINEER\AOENDA\OSDl.DDS J7~.2 "" ~ \: RESOLUTION NO. J7'Jr/? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR THE FY 1995-96 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE MAINTENANCE DISTRICT 1, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11, 1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and . WHEREAS, these reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 13 and July 11, 1995, in accordance with the Landscaping and Lighting Act of 1972. The report covers Open Space District No.1; and WHEREAS, the Parks and Recreation Department conducted an information meeting for all property owners within this district in January at which time staff explained the proposed budget; and WHEREAS, the proposed assessment for Fiscal Year 1995-96 is as follows: TABLE 1 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTIBLE AND % CHANGE FY FY Proposed Proposed FY Assessment FY95-96 FY95-96 93-94 94-95 FY95- 95-96 % Increase Cost/ED Revenue 96 Collect/EDU or Decrease U OSD No. 1 $78 $77 $77 $49 0% $81 $32,411 EI Rancho del Rey Units 1-4 1 /7-) \~ NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve the Engineer's report to declare its intention to levy and collect assessments for the FY 1995-96 for the spread of assessments for City Open Space Maintenance District 1, a copy of which is on file in the office of the city Clerk. BE IT FURTHER RESOLVED that the City Council does hereby set June 13, 1995 at 6:00 p.m. and July 21, 1995 at 6:00 p.m. in the city Council Chambers, city of Chula vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessment. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish said assessment pursuant to Government Code Section 6063. Presented by John P. Lippitt, Director of Public Works C:\rs\OS10eng.rep 2 /7-'1 \~ ~ .. . .- ~ ~~./ ...............-.~I --.........-............... .1' _,J . '1 .~, , " . . J i -, . · i , ,. .~ (. 1 )O~3"d3". / ./ /~ > ., "- "'".'. o' " ....... '. ... 'I . .', j , J - ~ .", i > t ~ ;.Pll, -::;) ,0 J ~ 5 ~lil!.i is... ;~ 'Iii o i~1 to ~ ~ ! I!pll ~ E ~ ,hili ~ "ll'.l z !I! ~ ll..:l' ~.. ;:fJl! l!s "" Ii ~ i' f: I' \, ' il Ii hi ~$;: i' It\ Ii ~. . 2. ~ z( a . - ; .L ~i I' i 1'1:: i . 1 f I . h;i, 11' i ;~ ii: "11 .! I PI I I ! ; t i I .: ~ . I' :"1' : f "i t ill1 ., . ., , . ;.~: Iii ! I i ~ I . , :; ; I ;1 \ HI .ct \""'" ~ "O1:l:l [ :>om :1'9 gj ~i~~~ rn ~Qg'~~~Q!;~~S:9 g " " " <i <l 0- <i " fl = c:: I (!i c:r "0 "1> n"",<::s .... s: sa ~ ,,00 g a ~~~88 ~ ~ ~ a 0- !; CIl ~ fl' ~ ~. ~ > " " " 0- r); .... 8 C') 0 .... _. 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'" ,~ ~ ~ JIJ~? \~ COUNCIL AGENDA STATEMENT ITEM TITLE: / 79c7~ Resolution Approving the Engineer's report for the FY 1995-96 spread of assessments for City Open Space District No. 10, declaring the intention to levy and collect assessments and setting June 13, I 95 at 6:00 p.m. and July II, 1995 at 6:00 p.m. as the dates and time for the public hearings. Director of Public WOrk~1JI Director of Parks and Recreati Item / IT Meeting Date 5/23/95 SUBMITTED BY: REVIEWED BY: City Manager (4/5ths Vote: Yes_NoX) Based upon the advice of the City Attorney, agenda items / t, /7 and / f{' have been separated due to conflict of interest concerns. One Council member owns property subject to the proposed assessment in this district. Council should note that agenda statement 1'1 gives all background information and details on open space districts in general which is applicable to this item, but does not include specific information on Open Space District 10. RECOMMENDATION: That Council adopt the resolution approving the Report, direct the City Clerk to publish the Resolution of Intention pursuant to Government Code 6063, set the dates of the public hearings on the assessments for June 13, 1995 at 6:00 p.m. and July 11, 1995 at 6:00 p.m. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance within Open Space District Number 10 located along East J Street, west of Paseo Ranchero (see Attachment A). Table I relates the present year's assessment to the proposed assessment for Fiscal Year 1995/96. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTlBLE AND % CHANGE Open Space District No. 10 FY 93-94 FY 94-95 Proposed Proposed FY Assessment FY95-96 EI Rancho del Rey 6 & Casa del FY 95-96 95-96 % Increase Revenue Rey CollectionlEDU or Decrease AssessmentlEDU $25 $42 $83 $68 200% $42,865 CostlEDU $84 $88 $83 - - - Staff recommends an increase in the annual assessment from $42.00 to $83.00' per EDU which reflects the FY 95/96 estimated maintenance cost. Staff recommends a collection of $68.00 per EDU and utilizing $15 per EDU from the fund balance (reserve, interest and savings) to make up the difference. Funds are available to do this because of prior years' savings. The reserve will be 53% with staff's recommendation. /y--( \~ Page 2, Item J fJ Meeting Date 5/23/95 The assessment has been lower than actual costs for the last three fiscal years because of district savings (water restrictions from '91 drought), low bid after levy of assessment and delayed turnover of new improvements. Staff's recommendation will make the estimated annual cost and assessment the same amount. As any increase in assessment is subject to a majority protest, staff recommends setting the assessment, which is the amount property owners receive as notice, at the higher amount of $83 (cost/EDU) not the amount of revenue needed ($68). Alternatively, if staff set the assessment at $68, it would be subject to majority protest for the increase from $42 anyway. The following year it might be necessary to increase the assessment again if savings were not realized to reduce the payment (collectible) below the assessment set for FY 95-96. If there is strong opposition at the public hearing, Council could still set the assessment at a lesser amount although $83/EDU is needed to provide the recommended maintenance. FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public W OIks, and Data Processing. Contractual costs are outlined in Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. Attachments: A District Map B Estimate of Cost RDB:dv M:\HJME\BNaINBER\AaENDA\OSDlO.DDS /8".; ,;L \~ RESOLUTION NO. / 7 '1~1/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR THE FY 1995-96 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE MAINTENANCE DISTRICT 10, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11, 1995 AT 6:00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula vista Municipal Code Chapter 17.07, the City Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the City; and WHEREAS, these reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 13 and July 11, 1995, in accordance with the Landscaping and Lighting Act of 1972. The report covers Open Space District No. 10; and WHEREAS, the Parks and Recreation Department conducted an information meeting for all property owners within this district in January at which time staff explained the proposed budget; and WHEREAS, the proposed assessment for Fiscal Year 1995-96 is as follows: TABLE I PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTIBLE AND % CHANGE Open Space District No. 10 FY FY Proposed Proposed FY Assessment FY95- EI Rancho del Rey 6 & 93-94 94-95 FY 95-96 95-96 % Increase 96 Casa del Rey Collection/EDU or Decrease Revenue Assessrnent/EDU $25 $42 $83 $68 200% $42,865 Cost/EDU $84 $88 $83 - - - 1 ) 'j" 3 ~\ NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve the Engineer's report to declare its intention to levy and collect assessments for the FY 1995-96 for the spread of assessments for city Open space Maintenance District 10, a copy of which is on file in the office of the city Clerk. BE IT FURTHER RESOLVED that the City Council does hereby set June 13, 1995 at 6:00 p.m. and July 21, 1995 at 6:00 p.m. in the city Council Chambers, city of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessment. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to publish said assessment pursuant to Government Code section 6063. C:\rs\OS10eng.rep Presented by John P. Lippitt, Director of Public Works 2 /8'--if \~ '" w U Zo <l- Z W f- Zo <lZ ~ <l f- (/) > <l -.J :::) I U LLLL 00 t3f- >- <lU f- 0..0:: - U)f- U Z(/) W wO I 0.. f- o . . i i : ~ n, . . i . . · 5 ! .. . , i ; - i r : ~ . In \ /' ./ /' I : _ i :I ; ..~i~.., . .; . r. . ! ! i , ! f i ! , . , 1;1 ~ Q Z , .. . ::::::: :::::;: ....... :::::: II J .! 1 i 1- . l!.'Il I I I f~ ~::;; &;J ~ .": . i ! =-.:1 · 'I ii/i . . . .. . .. . " . )0. . Hi i . i . . ;; i :e! "1 ~ i" ",. ::'1. =!:: i ...... :.- ~'" a. III , I .: _. 5 ri ~i'. i i!il! u,,"oita ~!li:j ........ :"i or r,:, = ..:."; a :;; = ~ :: "i!. :: ; a. ~.. c ::r~ /%--5 \~'? . I ! III . . ~ ;.~ l.. . .5 - i- . . . I, I.' I" ) \ AAI\- -, .\ I I I I I I \ \ I I I I I A 1.Jl I~ I~ I I I I I I !'! I i i I I I I f I ~~~ I h.....' ~I. ~l Eli I ~~. ~ I n~ ! 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(j) ~ () IT1 o (j) -i :::0 () -i Z P o i I I ~" ~ - ~ ~~~~~~~ 8 ~ ~ ~ 1: ~ ~ ~!H~e~~~ ~ ~ it .. ~ N c:fj~ \C~ '" ~ "'- '" .. .. ~ - ~ ~~~~~ ",>4< ....>4< ~ 0 8888888 8 ~ _N N'" g~ ~~~o~~~ 0 V'l =<0:1'- N'" r-: - ~ g:"~ ;:t '" or, e .. ~ U 0'"7 ......r I.() \0" vi' ~ ~~ ~ ~~ "'- '" a- .. .. .. ~ u B ~ .!1l '" ~ ~ ~~~~~ i~ ..: i>4< ~ ~~ 8888888 8 ~ !~ ~ .'9 fi g~~o~g~ ~ \0 O~"lt &: i 'Ii ~ ~:A .... - "I." .... "I. ''It,, ,,0.. I -'" '" -" N ~~ o~ "'- '" ~ - .. .. 0 ~ - ~ - .. ~ ffi en ... 0 0 u 0 ~ ! ::;; ,;9 U IS en ~~ I I ~ i ~ i li:l l5 ~ w" 2 '~ .~ .. gj,.... ".IS - ~.. ~ z il~rl .gOij ~ 5 ~ ~ ~ 1 ~ .- " ij .e:c=ij~~'E ~ e !l .i ~ ~ ::;; '~~i~~ ::>~ a 'E 8.5g:'Er2Jl"'~ 0 QM, tl e ::>~ ~ ir~ ~~ I!!. " .e~ ~ 'Ob ~ Jl B8'8.Jl ~~~e~ ~~~1!~ ~.fi c ~i3 t .. tj iB I:::i '-~8:~ 0" ! ~ L~ '" .., - " II iC 0( ~ j'~,~ i ~ ~ i ~ ~~ ~ il " ~ !!~~~ ::> ~! !~ '8 g @ oS "'~ ;5::;;Jl:lo F:...c1lo< ~... Ii; IS",? /Ie- 2 ----.--- COUNCIL AGENDA STATEMENT Item J 9 Meeting Date 5/23/95 ITEM TITLE: A. Resolution / ?'1tfl9 Approving the Engineer's reports for the FY 1995-96 spread of assessments for City Open Space Districts 2-9,11,14,15,17,18,20,23,24, 26, 31, Bay Boulevard, and Town Center, declaring the intention to levy and collect assessments, declaring the intention to establish Zone 9 within Open Space District 20 and setting June 13, 1995 and July 11, 1995 as the dates and times for the public hearings p. Resolution ) 7 ~ / t:l Approving boundary adjustment for City Open Space District 31 Director of Public Works~ City Manage~ b ~ (4/5ths Vote: Yes_Noll) SUBMITTED BY: REVIEWED BY: The City administers 23 open space districts established over the last twenty-five years. The districts provide the mechanism to finance the maintenance of common open space areas (canyons, trails, medians, etc.) associated with and benefitting that particular development. As part of this process, a levy of an annual assessment is necessary to enable the City to collect funds for the proposed open space maintenance. Tonight's action begins the process for Fiscal Year 1995/96. The City Engineer has prepared and filed reports on assessments for all existing Open Space Districts. The above resolution approves the reports and sets the dates for public hearings to consider the levy of assessments and collection of funds. An additioual resolution will approve a change to the boundary of Open Space District 31 to reflect the boundary adjustment between properties previously approved by Council. In a letter dated October 17, 1994, Sweetwater Authority requested they be exempted from the yearly open space assessment for a lot that they own in Open Space District 14. This report addresses that concern. Last, a zone needs to be established within Open Space District 20 (Rancho del Rey) to pay for that development's share of maintenance of Telegraph Canyon Channel. A zone is an area within an open space district that is established to pay the share of maintenance costs of an item that does not have a benefit for the entire district. RECOMMENDATION: That Council approve the resolutions: I) Approving the reports including supplemental items of work, directing the City Clerk to publish the Resolutions of Intention pursuant to Government Code 6063, and setting the dates of the public hearings on the assessments for June 13, 1995 at 6:00 p.m. and July 11, 1995 at 6:00 p.m. The June 13 public hearing shall also be for the purpose of taking testimony on the proposed Open Space Ordinance change, which is a companion item. 2) Approving a boundary adjustment for City Open Space District 31. 3) Staff also recommends that Sweetwater Authority's request for exemption from the open space district charges until they develop the site for their water facility be denied. This recommendation is embodied within the assessments and collections in the first resolution. 4) Direct staff to notice the property owners pursuant to State Codes and include information on the proposed ordinance change. BOARDS/COMMISSIONS RECOMMENDATION: The budget and assessment information for Town Center Maintenance District will be forwarded to the Town Center Committee via the Community Development /9-/ \~\t Page 2, Item-Lt Meeting Date 5/23/95 Department upon approval of the resolution. As the advisory committee for the Town Center developments, the Committee has historically reviewed this information and provided feedback to staff. DISCUSSION: This agenda statement is the yearly resolution of intention to assess property owners for open space maintenance within the City. Table I contains the name and location of the districts. Table 2 relates the present year's assessment to the proposed assessment and collectibleI for FY 95/96. Following Table 2, there is some general information that applies to all the districts and then each district is analyzed individually. A description of the noticing that is required is provided at the end of this agenda statement. As a final note, Council should be advised that the preceding agenda items contain the same information on Open Space District Nos. I, 10, and Eastlake which were separated due to conflict of interest concerns. Background Pursuant to Article 4, Chapter I, Part 2 of the Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and the City of Chula Vista Municipal Code, the City Engineer has prepared and filed the annual reports for all existing Open Space Districts in the City. The name and location of each open space district is shown in the following table. TABLE 1 Open Space Districts Within the City of Chuta Vista Open Space Name Location District No. 2 Lark Haven South and east of Lorna Verde Park 3 Rancho Robinhood Units 1 & 2 South of Allen School Lane 4 Bonita Ridge Camino Elevado 5 Southbay Villas Northern end of Crest Drive 6 Hilltop Vista Camino VISta Road 7 Zenith Units 2, 3, and 4 North and south of Palomar, east of I-80S 8 Rancho Robinhood Unit 3 Surrey Drive 9 El Rancho del Rey Units Pasco del Rey, north of Telegraph Canyon Road 11 Hidden Vista Village East H Street, east of I-80S 14 Bonita Long Canyon North and south of Country Vistas Lane 15 Bonita Haciendas Canyon Drive, east of Otay Lakes Road 17 Bel Air ridge Northeast of Pasco Ladera and East J Street 18 Rancho del Sur Easterly end of East Naples Street 20 Rancho del Rey North of East H Street, west of Otay Lakes Road I The collectible is defined in a proposed ordinance change on tonight's agenda preceding this item. /~'-;2 \~1 Page 3, Item / 'J Meeting Date 5/23/95 TABLE 1 Open Space Districts Within the City of Chula Vista 23 Otay Rio Business Park West of Heritage/OIay Valley Road, south of Otay Rio Road 24 Canyon View Homes Rutgers Avenue, south of East H Street 26 Park Bonita West of the intersection of E Street and Bonita Road 31 Telegraph Canyon Estates North of OIay Lakes Rd, west of "SR 125" Town Center No. I 1bird Avenue, north and south of F Street Bay Boulevard - These reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 13, 1995 at 6:00 p.m. and July II, 1995 at 6:00 p.m. in accordance with the Landscaping and Lighting Act of 1972. The reports cover districts listed in Table 1. The Parks and Recreation Department conducted information meetings for all property owners within each district in January and the Public WOIks Department will conduct information meetings in June. At the January meeting, staff explained the prelimiuary, proposed budget to 26 owners out of approximately 10,000 properties receiving notice. Subsequent to the budget meetings, staff is recommending changes to the City's Municipal Code regarding open space to allow an inflation factor on the assessment which would not be subject to majority protest beginning in FY 1996/97 and to differentiate between assessments and collectibles. Additionally, in the Council reports for the public hearings, staff will be recommending minor changes to the FY 1995/96 collection amount to accommodate a proposed staff time budget increase. The proposed increase (approximately 2%) is to include a Park & Recreation Departmental overhead factor in the budget. The proposed revised budget, assessment, and ordinance change will be discussed at the June meetings. A summary of the June meetings will be provided to Council at the second public hearing scheduled for July II. Assessments The proposed assessments and collectibles for Fiscal Year 1995-96 are as follows: TABLE 2 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD Proposed Proposed Assessment Estimated FY 93/94 FY 94/95 FY 95/96 FY95/96 % Increase or FY 95/96 FY 95/96 Assmnt/EDU Assmnt/EDU Assmnt/EDU Collectn/EDU DecreaseCl) Cost/EDU Revenue 2 32.00 34.00 34.00 29.00 0% 39.00 7,221 3 250.00 267.00 267.00 197.00 0% 259.00 25,019 4 197.00 282.00 282.00 217.00 0% 271.00 45,570 5 224.00 243.00 243.00 221.00 0% 275.00 26,962 6 128.00 136.00 136.00 0.00 0% 84.00 0 7 87.00 95.00 95.00 34.00 0% 93.00 3,536 8 430.00 430.00 430.00 280.00 0% 434.00 30,800 )1-3 \~~ Page 4, Item J 9 Meeting Date 5/~ OSD Proposed Proposed Assessment Estimated FY 93/94 FY 94/95 FY 95/96 FY95/96 % Increase or FY 95/96 FY 95/96 Assmnt/EDU Assmnt/EDU Assmnt/EDU Collectn/EDU Decrease(2) Cost/EDU Revenue 9 92.00 101.00 101.00 88.00 0% 123.00 33,792 11 81.00 83.00 83.00 67.00 0% 84.00 88,509 14 254.00 270.00 270.00 137.00 0% 269.00 119,650 15 234.00 234.00 234.00 183.00 0% 240.00 10,431 17 124.00 124.00 124.00 0 0% 116.00 0 18 303.00 293.00 293.00 228.00 0% 277.00 88,361 20(1) 203.00 203.00 - - - - 303,300 Zone 1 DB(3) - 36.67 45.28 0 23% 1.05 - Zone 2 RC - .19 3.44 0 1,810% 3.22 - Zone 3 H - 3.73 4.90 3.55 31% 4.90 - Zone 4 BC - 18.25 18.25 .78 0% 16.11 - Zone 5 1 - 187.62 275.15 83.82 47% 275.15 - Zone 6 11 - 0 211.41 211.41 NA 211.41 - Zone 7 111 - 9.39 130.50 5.59 1,390% 11.80 - Zone 8 NDB - 0 30,09 0 NA 0.00 - Zone 9 TCC - 0 23.89 16.61 NA 0.00 - 23 0 335.00 335.00 205.00 0% 212.00 11,480 24 210.00 432.00 432.00 298.00 0% 502.00 11,920 26 359.00 394.00 394.00 356.00 0% 356.00 6,764 31 NA 407.00 407.00 0 0% 392.00 0 Bay Blvd. 1,000.00 889.00 889.00 5.00 0% 1,291.00 50 Town Centre 43.00 45.00 45.00 39.00 0% 39.00 39,000 I) Represented average residential assessment in SPA 1. (2) Compares FY 94/95 assessment to proposed FY 95/96 assessment. (3) Includes supplemental item of work - drainage strncture south of East H Street, east of Paseo del Rey at no additional cost. District Assessments and Collectibles As recommended on the companion item on tonight's agenda for amending the City's regulations relating to open space districts, the assessments are generally held the same as FY 94/95. The assessment is generally the total amount needed for maintenance and 50% reserves not taking into account higher reserves, interest and savings. The collectible, on the other hand, is based on the budgets, reserves, savings, and fund balances, including interest and previous year's savings. It must always be eqnal to or less than the assessment amount or else the assessment must be increased. Under the Landscape and Lighting Act of 1972 an increase in the assessment is subject to a majority protest. This would cause the increase to be eliminated. The collection amount can vary from year to year due to interest and savings and, as long as it is less than the assessment amount, an increase from one year to the next cannot be eliminated by the protest. Under staff's recommendation, ouly three open space districts would have an increase in assessment and be subject to a majority protest on the increase (OSD 10, OSD 20 and Eastlake). In general, all budgets have decreased due to adjustments in contract services, utilities and City staff services (OSDs 20 and 31 budgets are proposed to be increased). The decrease in utility cost is based on actua1 use, not a forecast, and is due to more rainfall, which means less water was used. The decrease in contract services affecting OSDs 2, 6, 7, 17, 18, and 26 is /51-Y ,t,'" Page 5, Item /1 Meeting Date 5/23/95 due to receiving and accepting lower bids on contracts. The decrease in City staff services for most districts is due to shifting of costs to OSD 20 and OSD 31 corresponding to those districts' additional items proposed for maintenance in FY 95/96. Savings from prior years are proposed to be used to supplement the property owner collections to provide the revenue needed for FY 95/96 maintenance while maintaining reserves between 50%-60% (City Code requires reserves between 500/0-100%). For those districts where the reserve sti1l exceeds 50-60%, staff recommends using the savings to offset some of the assessments to give lower collectibles. Staff generally tries to keep the assessments level or with only gradnal increases, or decreases, each year. The following summarizes the major changes for each district. Under the new proposed policy being considered by separate item tonight, staff has made a distinction between the assessment and collectible amount; the assessment, estimated cost and collection will become the same number whenever an increase in assessment is necessary. The proposed assessment per EDU for FY 95/96 represents, in most cases, the prior year's assessment. The prior year assessment differed from cost depending on reserves, savings, etc. This year, as recommended on another of tonight's items, the assessment per ED U is the figure to be mailed to the property owners and the collectible is the amount to be collected which is affected by reserves, savings, etc. The collectible per EDU reflects impacts of the reserve requirements, ending fund balances and savings. For a detailed outline, see Attachment A. Proposed Proposed Assessment Estimated FY 95-96 FY 93-94 FY 94-95 FY 95.96 FY 95-96 % Increase FY 95.96 Revenue Assmt/EDU Assmt/EDU Assmt/EDU CollectionlEDU or Decrease Cost/EDU I~SD No.2 $32.00 $34.00 $34.00 $29.00 0% $39.00 7,221 Lark Haven Staff recommends that the assessment of $34 per Equivalent Dwelling Unit (EDU) remain the same as FY 94/95. This is less than the cost of $39. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $39 to provide the same level of service. Staff recommends a collection of $29 per EDU utilizing the fund balance to make up the difference ($10). Funds are available to do this because of prior year savings mostly in contractua1 services. The reserve under this recommendation will be 58%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CollectionlEDU or Decrease Cost/EDU Revenue OSD No. 3 $250.00 $267.00 $267.00 $197.00 0% $259.00 $25,019 Rancho Robinhood Units 1 & 2 Staff recommends that the assessment of $267 per EDU remain the same as FY 94/95. This is more than the cost of $259. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collection exceeded the prior year's assessment. Staff recommends a collection of $197 per EDU utilizing the fund balance to make up the difference ($62). Funds are available to do this because of prior year savings mostly in contractual services and utility costs. The reserve under this recommendation will be 73%. /9--f ~ Page 6, Item1Z- Meeting Date 5/23/95 Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU Collectn/EDU or Decrease Cost/EDU Revenue aSD No. 4 $197.00 $282.00 $282.00 $217.00 0% $271.00 $45,570 Bonita Ridge Staff recommends that the assessment of $282 per EOU remain the same as FY 94/95. This is more than the cost of $271. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends a collection of $217 per EOU utilizing the fund balance to make up the difference ($54). Funds are available to do this because of prior year savings mostly in utility costs. The reserve under this recommendation will be 53%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU Collection/EDU or Decrease Cost/EDU Revenue aSD No. 5 $224.00 $243.00 $243.00 $221.00 0% $275.00 $26,962 Southbay Villas Staff recommends that the assessment of $243 per EOU remain the same as FY 94/95. This is less than the cost of $275. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $275. Staff recommends a collection of$221 per EOU utilizing the fund balance to make up the difference ($54). Funds are available to do this because of prior year savings mostly in contractual services and utility costs. The reserve under this recommendation will be 65%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU Collection/EDU or Decrease Cost/EDU Revenue aSD No.6 $128.00 $136.00 $136.00 $0.00 0% $84.00 0 Hilltop Vista Staff recommends that the assessment of $136 per EOU remain the same as FY 94/95. This is more than the cost of $84. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collection exceeded the prior year's assessment. Staff recommends no collection this year, utilizing the fund balance for all maintenance. Funds are available to do this because a substantially lower bid was received resulting in excess funds. The reserve under this recommendation will be 100%, the maximum allowed under the City Ordinance. Alternatively, refunds could be processed to lower the reserve below 100%. Staff recommends against this alternative, as it is costly to process refunds. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU Collection/EDU or Decrease Cost/EDU Revenue I~SD No.7 - Zenith $87.00 $95.00 $95.00 $34.00 0% $93.00 $3,536 Units 2, 3, & 4 Staff recommends that the assessment of $95 per EOU remain the same as FY 94/95. This is more than the cost of $93. Leaving the assessment at last year's amount will enable the collectible to increase should contract J9-~ ~, Page 7, ItemR Meeting Date 5/23/95 costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends a collection of $34 per EOU utilizing the fund balance to make up the difference ($59). Funds are available to do this because of prior year savings mostly in contractual services and adjusting the reserve balance. The reserve under this recommendation will be 60%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CollectionlEDU or Decrease Cost/EDU Revenue OSDNo.8 $430.00 $430.00 $430.00 $280.00 0% $434.00 $30,800 Rancho Robinhood Unit 3 Staff recommends that the assessment of $430.00 per EOU remain the same as FY 94/95. This is less than the cost of $434. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $434. Staff recommends a collection of$280 per EOU utilizing the fund balance to make up the difference ($154). Funds are available to do this because of prior year savings mostly in contractual services and adjusting the reserve balance. The reserve under this recommendation will be 55%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CollectionlEDU or Decrease Cost/EDU Revenue OSD No. 9 $92.00 $101.00 $101.00 $88.00 0% $123.00 $33,792 El Rancho del Rey Units Staff recommends that the assessment of $101 per EOU remain the same as FY 94/95. This is less than the cost of $123. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $123. Staff recommends a collection of $88 per EOU utilizing the fund balance to make up the difference ($45). Funds are available to do this because of prior year savings mostly in contractual services and utility costs and adjusting the reserve balance. The reserve under this recommendation will be 60%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CollectionlEDU or Decrease Cost/EDU Revenue OSD No. 11 $81.00 $83.00 $83.00 $67.00 0% $84.00 $88,509 Hidden Vista Village Staff recommends that the assessment of $83 per EOU remain the same as FY 94/95. This is less than the cost of $84. Eventually, if maintenance costs remained the same, staff would need to increase the assessment of $84. Staff recommends a collection of $67 per EOU utilizing the fund balance to make up the difference ($17). Funds are available to do this because of prior year savings mostly caused by delayed turnover of new improvements and lower bids. The reserve under this recommendation will be 52%. )'1---7 ~ Page 8, Item4 Meeting Date 5/23/95 Proposed Proposed Assessment FY 95-96 FY 93-94 FY 94-95 FY 95-96 FY 95-96 %Increase FY 95-96 Revenue Assmt/EDU Assmt/EDU Assmt/EDU CollectionJEDU or Decrease Cost/EDU I~SD No. 14 $254.00 $270.00 $279.00 $137.00 0% $269.00 119,650 Bonita Long Canyon Staff recommends that the assessment of $270 per EDU remain the same as FY 94/95. This is more than the cost of $269. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends a collection of $13 7 per ED U utilizing the fund balance to make up the difference ($132). Funds are available to do this because of prior year savings mostly in contractual services and utility costs. The reserve under this recommendation will be 60%. Sweetwater Authority owns a residential lot for future construction of a water tank within OSD 14. The Authority has requested waiver from the OSO assessment (see Attachment C). Staff does not support this request as the land is vacant and could be sold as residential lot. Staff recommends that Council consider an exemption at the time water facilities are constructed. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CollectionJEDU or Decrease Cost/EDU Revenue IOSD No. 15 $234.00 $234.00 $234.00 $183.00 0% $240.00 $10,431 Bonita Haciendas Staff recommends that the assessment of $234 per EOU remain the same as FY 94/95. This is less than the cost of $240. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $240. Staff recommends a collection of $183 per EOU utilizing the fund balance to make up the difference ($57). Funds are available to do this because of prior year savings mostly in contractual services. The reserve under this recommendation will be 59%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CollectionJEDU or Decrease Cost/EDU Revenue OSD No. 17 $124.00 $124.00 $124.00 0.00 0% $116.00 0 Bel Air Ridge Staff recommends that the assessment of $124.00 per EOU remain the same as FY 94/95. This is more than the cost of $116. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends no annual collection utilizing the fund balance for all maintenance. Funds are available to do this because of prior year savings mostly in utility costs and drainage maintenance. The reserve under this recommendation will be 100%, the maximum allowed under the City Ordinance. Alternatively, refimds could be processed to lower tbe reserve below 100%. Staff recommends against this alternative as it is costly to process refunds. /1- Fr o/J Page 9, Item--L2..- Meeting Date 5/23/95 Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 AssmtlEDU AssmtlEDU AssmtlEDU CollectionlEDU or Decrease Cost/EDU Revenue IOSD No. 18 $303.00 $293.00 $293.00 $228.00 0% $277.00 $88,361 Rancho del Sur Staff recommends that the assessment of $293 per EDU remain the same as FY 94/95. This is more than the cost of $277. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends a collection of $228 per EDU utilizing the fund balance to make up the difference ($49). Funds are available to do this because of prior and estimated current year savings mostly in contractual services and utility costs. The reserve under this recommendation will be 70%. Proposed Proposed Assessment Estimated FY 93/94 FY 94/95 FY 95/96 FY 95/96 % Increase or FY 95/96 AssmntlEDU AssmntlEDU AssmntlEDU CollectionlEDU Decrease(l) CostlEDU OSD No. 20 - - - - - - Rancho del Rey Zone 1 Desilt Basin - 36.67 45.28 0 23% 1.05 Zone 2 Rice Canyon - .19 3.44 0 1,810% 3.22 Zone 3 H St. - 3.73 4.90 3.55 31% 4.90 Zone 4 Business Center - 18.25 18.25 .78 0% 16.11 Zone 5 SPA 1 - 187.62 275.15 83.82 47% 275.15 Zone 6 SPA II - 0 211.41 211.41 NA 211.41 Zone 7 SPA III - 9.39 130.50 5.59 1,390% 11.80 Zone 8 North Desilting - 0 30.09 0 NA 0.00 Basin Zone 9 Telegraph Canyon - 0 23.89 16.61 NA 0.00 Channel Rancho del Rey is a phased development of three Sectional Planning Areas (SPA). SPA I is approximately 50% developed, SPA II homes are under construction and SPA III land is being graded. The OSD was established in 1989 encompassing all three areas with the understanding that the open space improvements would be constructed in phases. Becaose this is a large district and not all of the items to be maintained have a benefit to the entire district, OSD 20 is made up of several zones as indicated above. Every property within the district is in mOre than one zone. Staff recommends increasing the FY 95/96 assessments to the estimated ultimate cost. As the developer and guest builders own the majority ofland in SPAs II and III, protests will be minimized if increases are effected this year. SPA II assessment ($211) is recommended to increase to accommodate the turnover of improvements associated with it. Staff recommends the collection for SPA III ($6/EDU) be substantially less than the proposed assessment ($130) because the development is not completed (except the Telegraph Canyon medians). Staff recommends an increase in the assessment for SPA I (Zone 5) from $187 per EDU to $275 per EDU to reflect the ultimate estimated cost. Staff recommends collecting a lesser amount (collectible) of $83 uti1izing the fund balance to make up the difference ($192). Funds are available to do this because of prior year savings mostly in contractual services and utility costs due to delayed turnover of improvements. An increase in /9-; ~'^' Page 10, ItemA Meeting Date 5/23/95 assessment could be deferred for SPA I residents, but staff recommends increasing it now to coincide with SPAs II and III assessment increases. Although these areas are in separate zones, effecting the increases in a single year is consistent with the areas being in one open space district. This simplifies the notice procedure and reduces the errors in noticing. All of these assessment increases are subject to a majority protest this year. Staff recommends minor assessment increases (less than $151EDU total) for Zones 1-3 to reflect the ultimate estimated cost. Current year assessments are less because of savings, etc. A typical parcel in OSD 20 is assessed for up to four different zones. Table 3 summarizes the combination of assessments. TABLE 3 Typical Combined Assessment (FY 95-96) SPA I (Zones lor 8, 2, 3, & 5) $298 SPA II (Zones I or 8, 2, 3, & 6) 265 SPA III (Zones I or 9, 3, & 7) 144 Business Center (Zones I, 2, 3, & 4) -- Industrial (per acre) 814 Commercial (per acre) 1,005 The reserve under this recommendation will be 41 %. Pursuant to City Municipal Code, the reserve will be increased to 50% (minimum) over 5 years. Zone 9 Telel!raoh Canvon Channel Pursuant to the agreement between East1ake Development Company and the City, dated August 2, 1988 and approved by Resolution 13716, the City shall use its best efforts to establish a maintenance district for the Telegraph Canyon channel between East1ake and Rancho del Rey. In July 1994, Council established a zone within ELMD I to share the maintenance costs of this section of channel. As Rancho del Rey final maps are pending, it is appropriate to establish a similar zone within OSD 20. If approved, properties whose stormwater runs off to the channel (south half of SPA 3) will be subject to the additional assessment as shown in Table 4 based on their prorated share of the Telegraph Canyon basin (2.4%). Rancho del Rey or one of the guest builders are the sole property owners in the proposed Zone 9 and consequently staff does not anticipate any protests. TABLE 4 OSO 20 - Proposed Zone 9 Telegraph Canyon Channel Channel Silt Fence Plant Removal Total RDR @ 2.4% FY 95/96 Assmt Collectioo/EDU Share of Cost & Cost/EOU FY 95/96 Phase I $4,079 $4,822 $8,901 $214 $4.92 $4.92 Phase 2 5,743 12,449 18,192 437 10.04 10.04 Phase 3 6,407 6,780 13,187 317 7.28 0.00 SUBTOTAL $40,280 968 $22.24IEOU 14.96 FORMATION COST 72 $1.65IEOU 1.65 TOTAL $1,040 $23.89IEOU 16.61 - The methodology for spreading the cost is consistent with the methods for the existing OSO 20 drainage zones. _ A typical residentiallot in Zone 9 is equal to 0.2 drainage EOU's for a Zone 9 assessment of $4.78 (.2 EOU x $23.89IEOU) and collection of $3.32 (.2 EOU x 16.61). J'j-/// ~ Page 11, Item.-.lL Meeting Date 5/23/95 Staff recommends a collection of only $16.61 per EDU to provide adequate funds for Phase 1 and 2 maintenance. Phase 3 is not anticipated to be ready for turnover during FY95/96. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CoIlectionlEDU or Decrease Cost/EDU Revenue I~SD No. 23 - Otay $0 $335.00 $335.00 $205.00 0% $212.00 $11,480 Rio Business Park Staff recommends that the assessment of $335 per EDU remain the same as FY 94/95. This is more than the cost of $212. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. The higher amount of $335 was recommended by the developer, based on his costs, in 1993. As there is a short history on this district, staff does not recommend lowering the assessment at this time. Staff recommends a collection of $205 per EDU utilizing the fund balance to make up the difference ($7). Funds are available to do this because of prior and estimated current year savings mostly in contractual services. The reserve under this recommendation will be 50%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CoIlectionlEDU or Decrease Cost/EDU Revenue OSD No. 24 - $210.00 $432.00 $432.00 . $298.00 0% $502.00 $11,920 Canyon View Homes Note: OSD 24 consists of only 40 townhomes sharing in the cost of large, landscaped slopes adjacent to the townhomes. Staff recommends that the assessment of $432 per EDU remain the same as FY 94/95. This is less than the cost of $502. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $502. Staff recommends a collection of $298 per EDU utilizing the fund balance to make up the difference ($204). Funds are available to do this because of prior year savings mostly due to delayed turnover of improvements. The reserve under this recommendation will be 60%. Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 Assmt/EDU Assmt/EDU Assmt/EDU CoIlectionlEDU or Decrease Cost/EDU Revenue rOSD No. 26 $359.00 $394.00 $394.00 $356.00 0% $356.00 $6,764 Park Bonita Staff recommends that the assessment of $394 per EDU remain the same as FY 94/95. This is more than the cost of $356. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends a collection of $356. The reserve under this recommendation will be 33% and is being increased to 50% over 5 years per City Code. /9'-// ~ ~ Page 12, Itemfl Meeting Date 5/23/95 Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 AssmtJEDU Assmt/EDU Assmt/EDU CollectionlEDU or Decrease CostlEDU Revenue OSD No. 31 NA $407 .00 $407.00 $0 0% $392.00 $0 Telegraph Canyon Estates Staff recommends that the assessment of $407 per EDU remain the same as FY94/95. This is more than the cost of $392. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends no collection utilizing the fund balance for all maintenance. Funds are available to do this because of prior year savings due to the fact that the City has not yet accepted the improvements, but began collecting the assessment in the belief that we would begin maintaining it this fiscal year. The reserve under this recommendation will be 50% as turnover of improvements is not anticipated to occur until January of 1996. Council approved staff's recommendation last year to assess the full estimated maintenance cost even though 95% of the improvements would not be ready for maintenance. Council approved refunding 95% of the assessment. Under the proposed ordinance change under a separate item, making the distinction between assessment and collection, refunds are not necessary saving the property owners the cost of administering refunds. On March 8, 1994, Council approved Resolution No. 17410 referring to a minor boundary adjustment and agreement between the City, adj acent property owners and the Baldwin Company, as a result of complaints in the grading of the site, which blocked the adjacent property owners' view. As the adjustment occurred after Council approved the formation of the OSD, staff recommends that Council approve a minor change in the OSD boundary to be consistent with the lot line adjustment (Attachment D). Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 AssmtJEDU AssmtJEDU AssmtJEDU CollectionlEDU or Decrease CostJEDU Revenue Bay Blvd Open $1,000.00 $889.00 $889.00 $5.00 0% $1,291.00 50 Space Maintenance District Note: Costs of this district are shared between four commercial parcels. Staff recommends that the assessment of $889.00 per EDU remain the same as FY 94/95. This is less than the cost of $1291. Eventually if the maintenance costs remained the same, staff would need to increase the assessment amount to $1291. Staff recommends a collection of $5 per EDU utilizing the fund balance to make up the difference ($1286). Funds are available to do this because of prior year savings mostly in utility costs and a prior year delinquency brought current. The prior year delinquency amount, as outlined for Council last year, had not been accounted for in the fund balance and the property owners were "over-assessed." Staff has revised the procedure to prevent this from occurring in the future. The reserve under this recommendation will be 60%. /9-/..2 ~ Page 13, Item~ Meeting Date 5/23/95 Proposed Proposed Assessment Estimated FY 93-94 FY 94-95 FY 95-96 FY 95-96 % Increase FY 95-96 FY 95-96 AssmtlEDU AssmtlEDU AssmtlEDU CollectionlEDU or Decrease CostlEDU Revenue Town Center Open $43.00 $45.00 $45.00 $39.00 0% $39.00 $39,000 Space Maintenance District Staff recommends that the assessment of $45 per EDD remain the same as FY 94/95. This is more than the cost of$39. Leaving the assessment at last year's amount will enable the collectible to increase should contract costs, utility costs, etc. increase in future years without being subject to the majority protest provision until the collectible exceeded the prior year's assessment. Staff recommends a collection of $39. The reserve under this recommendation will be 53%. Notice The public hearings will be noticed pursuant to Government Code 6063 which requires that notice be published at least once a week for three weeks 10 days before the second public hearing. Staff will mail notice of the hearings, 45 days in advance of the second public hearing. The notice will inform the resident of hislher district, last year and current year assessment and the proposed assessment for FY 95/96. The three districts (OSD 10, 20 and Eastlake) which are proposed for assessment increases, will be notified that any increase in assessment may be overruled by a majority protest. Staff will also notify the residents of an information meeting to be held by staff in early June. The notice will also include information regarding the proposed ordinance allowing an inflation factor and defining assessment separately from collectible. The notice will indicate that the June 13th public hearing, in addition to considering the levy of assessments, will be for the purpose of taking testimony on the proposed Ordinance (under separate report). If Council does not approve the proposed ordinance, staff will revise the assessments accordingly for the public hearing( s). Sweetwater Authority will be notified of the hearings. FISCAL IMPACT: Staff costs associated with the open space program are generated by Parks and Recreation, Public W OIks, and Data Processing. Contractoal costs are outlined in Attachment A. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. Attachments: A Cost Summary B District Maps C Sweetwater Authority letter D OSD 31 Boundary adjustment M:\...\agenda\OSroi.dds /9- /3 /17-11 ~ ~ RESOLUTION NO. /?'1t7<} RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORTS FOR THE FY 1995-96 SPREAD OF ASSESSMENTS FOR CITY OPEN SPACE MAINTENANCE DISTRICTS 2-9, 11, 14, 15, 17, 18, 20, 23, 24, 26, 31, BAY BOULEVARD AND TOWN CENTRE, DECLARING THE INTENTION TO LEVY AND COLLECT ASSESSMENTS, DECLARING THE INTENTION TO ESTABLISH ZONE 9 WITHIN OPEN SPACE DISTRICT 20 AND SETTING JUNE 13, 1995 AT 6:00 P.M. AND JULY 11, 1995 AT 6: 00 P.M. AS THE DATES AND TIMES FOR THE PUBLIC HEARINGS WHEREAS, pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and Chula vista Municipal Code Chapter 17.07, the city Engineer has prepared and filed the annual reports for all existing Open Space Maintenance Districts in the city; and WHEREAS, these reports were prepared by the city Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 13, 1995 and July 11, 1995 in accordance with the Landscaping and Lighting Act of 1972. The reports cover the following districts: 1. Open Space District Nos. 2 through 9, 11, 14, 15, 17, 18, 20, 23, 24, 26, 31- 2. Zone 9 within Open Space District No. 20 3. Bay Boulevard and Town Centre I Landscaping Districts WHEREAS, the Parks and Recreation Department conducted information meetings for all property owners within each district in January at which time staff explained the proposed budget; and WHEREAS, the Public Works Department will conduct information meetings in June; and WHEREAS, the proposed assessments for Fiscal Year 1995-96 are as follows: TABLE 2 PRIOR FY'S VS. FY 95/96 ASSESSMENT/COLLECTIBLE AND % CHANGE OSD Proposed Proposed Assessment Estimated FY 93/94 FY 94/95 FY 95/96 FY95/96 % Increase or FY 95/96 FY 95/96 Assmnt/EDU Assmnt/EDU Assmnt/EDU Collectn/EDU Decrease(2) Cost/EDU Revenue 2 32.00 34.00 34.00 29.00 0% 39.00 7,221 1 )'1//-/ ~ ~- OSD Proposed Proposed Assessment Estimated FY 93/94 FY 94/95 FY 95/96 FY95/96 % Increase or FY 95/96 FY 95/96 AssrnntlEDU AssrnntlEDU Assrnnt/EDU Collectn/EDU Decrease(2) CostlEDU Revenue 3 250.00 267.00 267.00 197.00 0% 259.00 25,019 4 197.00 282.00 282.00 217.00 0% 271.00 45,570 5 224.00 243.00 243.00 221.00 0% 275.00 26,962 6 128.00 136.00 136.00 0.00 0% 84.00 0 7 87.00 95.00 95.00 34.00 0% 93.00 3,536 8 430.00 430.00 430.00 280.00 0% 434.00 30,800 9 92.00 101.00 101.00 88.00 0% 123.00 33,792 11 81.00 83.00 83.00 67.00 0% 84.00 88,509 14 254.00 270.00 270.00 137.00 0% 269.00 119,650 15 234.00 234.00 234.00 183.00 0% 240.00 10,431 17 124.00 124.00 124.00 0 0% 116.00 0 18 303.00 293.00 293.00 228.00 0% 277. 00 88,361 20<1) 203.00 203.00 - - - - 303,300 Zone 1 DBa> - 36.67 45.28 0 23% 1.05 - Zone 2 RC - .19 3.44 0 1,810% 3.22 - Zone 3 H - 3.73 4.90 3.55 31% 4.90 - Zone 4 BC - 18.25 18.25 .78 0% 16.11 - Zone 5 I - 187.62 275.15 83.82 47% 275.15 - Zone 6 II - 0 211.41 211.41 NA 211.41 - Zone 7 III - 9.39 130.50 5.59 1,390% 11.80 - Zone 8 NDB - 0 30.09 0 NA 0.00 - Zone 9 TCC - 0 23.89 16.61 NA 0.00 - 23 0 335.00 335.00 205.00 0% 212.00 11,480 24 210.00 432.00 432.00 298.00 0% 502.00 11,920 26 359.00 394.00 394.00 356.00 0% 356.00 6,764 31 NA 407.00 407.00 0 0% 392.00 0 Bay Blvd. 1,000.00 889.00 889.00 5.00 0% 1,291.00 50 Town Centre 43.00 45.00 45.00 39.00 0% 39.00 39,000 (I) Represented average residential assessment in SPA 1. (2) Compares FY 94/95 assessment to proposed FY 95/96 assessment. (2) Includes supplemental item of work - drainage structore south of East H Street, east of Paseo del Rey at no additional cost. NOW, THEREFORE, BE IT RESOLVED that the city Council of the City ofChula vista does hereby approve the Engineer'S reports for the FY 1995-96 spread of assessments for City Open Space Districts 2-9, 11, 14, 15, 17, 18, 20, 23, 24, 26, 31, Bay Boulevard and Town Centre and declare its intention to levy and collect assessments. 2 /7/7 - ~ ~ BE IT FURTHER RESOLVED that the city council of the City of Chula vista does hereby declare its intention to establish Zone 9 within Open Spac~ District 20. BE IT FURTHER RESOLVED that the city council does hereby set June 13, 1995 and July 11, 1995 at 6:00 p.m. in the Council Chambers, City of Chula Vista, 276 Fourth Avenue, Chula Vista, California as the dates and times for the public hearings on said assessments. BE IT FURTHER RESOLVED based upon staff's recommendation, Sweetwater Authority's request for exemption from the open space district charges until they develop the site for their water facility be denied. BE IT FURTHER RESOLVED that the city Clerk is hereby directed to publish the Resolutions of Intention pursuant to Government Code section 6063. John P. Lippitt, Director of Public Works d, City Attorney Presented by C:\rs\OSAss.en 3 Ji~;Jf \.~ RESOLUTION NO. 179/~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING BOUNDARY ADJUSTMENT FOR CITY OPEN SPACE DISTRICT 31 WHEREAS, Open space District 31 encompasses Telegraph Canyon Estates; and WHEREAS, on March 8, 1994, Council approved Resolution No. 17410 referring to a minor boundary adjustment and agreement between the City, adjacent property owners and the Baldwin Company, as a result of complaints in the grading of the site, which blocked the adjacent property owners' view; and WHEREAS, as the adjustment occurred after Council approved the formation of the open space district, staff recommends that Council approve a minor change in the open space district boundary to be consistent with the lot line adjustment as set forth in Attachment D, attached hereto and incorporated herein by reference as if set forth in full. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the boundary adjustment for City Open Space District 31. Presented by ~ John P. Lippitt, Director of Public Works C:\rs\osass.en JW~ ~ COUNCIL AGENDA STATEMENT Item ~ Meeting Date 5/23/95 ITEM TITLE: Report on Draft Multiple Species Conservation Program (MSCP) Plan SUBMITTED BY: Director of Planning ;1'( REVIEWED BY: City Manager~ ~ti}!l (4/5tbs Vote: Yes_NoX) The City of San Diego has released the draft Multiple Species Conservation Program (MSCP) Plan and draft Environmental Impact Report / Environmental Impact Statement (EIR/EIS) for public review. Our staff has completed a preliminary review of the Plan, and has also solicited public input regarding the draft Plan. The following is a preliminary report regarding the major issues which have been identified at this time, as well as a discussion of the public review process which is proposed for completing our review of the draft Plan and EIR/EIS. RECOMMENDATION: It is recommended that the City Council accept the attached report, and provide any further direction regarding issues which they wish to have addressed when this matter is brought back at a public hearing on June 13. BOARDS/COMMISSIONS RECOMMENDATION: The Resource Conservation Commission has reviewed the draft Plan, and will be meeting again on May 22 to formulate comments on the draft Plan. The Planning Commission is scheduled to discuss this Plan on May 24. Comments from both of these commissions will be forwarded to the City Council for your public hearing on this matter on June 13. DISCUSSION: On March 28, staff provided the City Council with a Council Agenda Statement which included an executive summary of the draft MSCP Plan, and discussed the review process for the Plan and EIR/EIS. Since that time, City staff has been involved in extensive review of the draft Plan. In addition, our staff has been working with MSCP Program staff from the City of San Diego, as well as staff from the other participating jurisdictions (primarily San Diego County, Poway, and Santee), and U.S. Fish and Wildlife Service (USFWS) and California Department of Fish and Game (CDFG) to identify and attempt to resolve major issues which have been raised in our review of the draft Plan. ..2~ --- / ~~ Page 2, Item .20 Meeting Date 5/23/95 MAJOR ISSUES In our review to date, the following major issues have been identified: 1) Preserve Desilm In November 1994, the City Council endorsed a draft "Multi-habitat Planning Area" (MHP A) map for evaluation in the draft MSCP Plan and EIR. The MHP A map was prepared by staff of the participating local jurisdictions, and depicted a 164,000 acre regional preserve system that was generally consistent with adopted local general plans and specific plans. In reviewing the draft MSCP Plan, which is based on the MHP A boundary, representatives of both USFWS and CDFG have indicated that there are several specific locations in the draft Plan where the proposed "preserve design" (Le., location and configuration of areas to be included within a permanent habitat preserve) is inadequate to meet the requirements for protection of proposed covered species, including the California Gnatcatcher. They have specifically indicated that there are deficiencies with regard to the proposed preserve design of Otay Ranch, and that these deficiencies are so significant as to make the overall regional plan unacceptable (see Attachment A, a letter from USFWS sununarizing their comments regarding preserve design issues for the City of Chula Vista). In discussions with USFWS and CDFG regarding the issues addressed in this letter, City staff has taken the position that the preserve design should, to the greatest extent possible, reflect the City's adopted plans, and that the City's plan review and environmental review process has included extensive consideration of preserve design issues. Staff is continuing to meet with USFWS and CDFG to discuss these issues. In addition, City staff has been in contact with several property owners within the MSCP Planning Area, as well as various City departments, and we have obtained specific comments regarding both the preserve design configuration, and specific criteria for implementing the preserve design. One major issue relates to the current designation of certain areas within the Chula Vista planning area as "100% preserve areas," which would require 100% of those areas shown within these boundaries to be included in the final preserve. In response to comments received to date, we are evaluating alternative . designations, such as "90% preserve areas," which would allow up to 10% of the area within the boundary to be developed, and provide greater boundary flexibility. There are also specific concerns regarding "buffer requirements" contained in the draft Plan, which could place further land use restrictions on areas located outside of and adjacent to the proposed preserve areas . We are requesting clarification of these requirements, and may be recommending that they either be modified or eliminated in order that the Plan can be administered more easily. .,2 t7 - d... ~~ Page 3, Item ..20 Meeting Date 5/23/95 Finally, staff has recently received a letter from the Eastlake Company, with specific comments regarding the accuracy of the proposed preserve designations within the Eastlake III General Development planning area (see Attachment B.) We are reviewing all of the preserve design issues discussed above, and will report to Council with specific recommendations at the June 13 hearing. 2) Subarea Plans As discussed above, the draft MSCP Plan includes a Multiple Habitat Planning Area map which provides generalized designations of areas which would be placed into a regional preserve system. However, the resource agencies have indicated that, in order for them to provide local jurisdictions with authority to issue individual permits pursuant to the Federal and State Endangered Species Acts, and specifically in order to receive permit authority for Coastal Sage Scrub habitat loss in accordance with the State Natural Community Conservation Program, it would also be necessary to prepare" subarea plans" for each local jurisdiction. These subarea plans would provide greater detail regarding preserve design configuration, adjacent land uses, and other detailed planning issues. It had originally been our understanding that these more detailed plans could be prepared subsequent to the adoption of the MSCP Plan, and that there would not be any further environmental documents necessary for adoption of these implementation plans. However, subsequent to the release of the draft MSCP, we were notified that in order to be able to use the EIR/EIS for the adoption of a local subarea plan, it would be necessary for the subarea plan to be included in the final draft MSCP Plan. In addition, the USFWS and CDFG have just recently provided the local jurisdictions with a specific listing of the required contents of a subarea plan, and it appears that these subarea plans could require preparation of a significant amount of additional documentation, and will also require more direct input from affected property owners. We have already begun discussions with two of the major property owners within our General Plan area (Baldwin Company, owner of Otay Ranch, and Emerald Properties, owner of San Miguel Ranch) regarding the process and time requirements for preparation of subarea plans affecting their properties. However, we are taking the position in our discussions with the resource agencies on this issue that: a) the requirements for subarea plans should be streamlined (for example, relying wherever possible on already adopted local specific plans and EIR's), and b) adequate time should be provided so that all participating jurisdictions can include their subarea plans in the final draft MSCP, and thus avoid additional environmental impact report requirements. e2 tJ :J ~ Page 4, Item .2 tJ Meeting Date 5/23/95 3) Imolementing Agreement In addition to the MSCP Plan and subarea plans, each jurisdiction would be required to enter into an implementing agreement with USFWS and CDFG in order to obtain permitting authority. A model implementing agreement is included in the draft MSCP Plan. Planning Department staff has been coordinating with the City Attorney's office in reviewing this model agreement, and the City Attorney's office has prepared a memorandum outlining specific issues and concerns with regard to the draft agreement (see Attachment C, memorandum from Ann Moore, Assistant City Attorney). Some of the major issues which have been identified in the agreement are: a) lack of adequate assurances being provided in the agreement that future listings of covered species would be automatically included within a local jurisdiction's permitting authority without requiring additional applications or review; b) indemnification of the local jurisdictions from liabilities stemming from issuance or denial of permits authorized under this agreement; and c) questions regarding phased implementation and severability (i.e., what are the consequences if one or more jurisdictions are delayed in their adoption of the MSCP Plan, or later withdraw from the program). These issues are currently being discussed with resource agency staffs and the Federal Solicitor's office, and a status report on these issues will be provided to the City Council at the June 13 hearing. However, it is our staff position that unless these matters can be satisfactorily resolved, the risks inherent in accepting local permitting authority through adoption of the MSCP and implementing agreement may be unacceptable. 5) Funding The resource agencies have indicated that they need a commitment from local jurisdictions toward providing local funding sources for implementing the MSCP land acquisition program. The draft MSCP Plan sets forth a proposed allocation of responsibility for land acquisition, addressing private property owners, state and federal government, and local funding sources. The staffs of the local jurisdictions have emphasized that neither they nor the local elected officials have made any specific commitment to local funding, and have stated that any local funding sources would need to be regional in nature, and be subject to voter approval. The issue here is whether, and to what extent, the resource agencies will turn over local permit authority through the MSCP without a local funding program in place. c20-r ~\, . Page 5, Item .) tJ Meeting Date 5/23/95 Staffs from the local jurisdictions have also indicated that there needs to be assurances provided that there will be a significant commitment of funding to the program from the Federal and State governments. In addition, once that commitment is made, if those funding sources are not provided, the local participants in the Plan should not be penalized by either eliminating local permit authority or requiring a higher local share of financial participation. In addition to the major issues outlined above, the Planning Department has received detailed comments from several City departments (see Attachment D). PROCESS FOR FURTHER REVIEW OF DRAFT PLAN AND EIR/EIS As noted earlier, staff has done an extensive review of the draft MSCP Plan, and is currently beginning to review the draft EIR/EIS. In addition, we are working with USFWS and CDFG to resolve major preserve design issues which have been identified regarding Otay Ranch and other sites, as well as how a subarea plan can be developed and included in the MSCP Plan without substantially delaying the overall MSCP review process. In order to obtain additional public input, we are proposing that the City Council schedule a public hearing on the draft Plan and EIR/EIS for its regular meeting on June 13, at which time staff will have completed its review of the draft EIR/EIS, and will hopefully have resolved many of the questions and unresolved issues which are identified in this report. It should be noted that the original deadline for comments for the draft MSCP Plan was set for May 30; however, the MSCP Policy Committee, at its meeting on May 5, voted to request a delay in this deadline to coincide with the deadline for review of the draft EIR/EIS in late June. FISCAL IMPACT: Staff review and participation in this program is supported by the General Fund at this time. It should be recognized that future implementation of this program could result in significant additional local costs, which will need to be further evaluated prior to any final actions being taken by the City Council on this matter. Attaclunent A: Attaclunent B: Attaclunent C: Attaclunent D: Letter from Gail Kobetich, USFWS, dated 4/13/95 Letter from Katy Wright, Eastlake Development Company, dated 5/17/95 Memo from Ann Moore, Assistant City Attorney, dated 5/17/95 Comments from City departments regarding draft MSCP Plan (F8\mscp.All) ..2t7 - .s ~'\ -0~#w A TT ACHMENT A LETTER FROM GAIL KOBETICH, USFWS DATED 4/13/95 - /- .;2,0-7 THIS PAGE BLANK -/j() -IT ,. United States Department of the Interior FISH AND WILDLIFE SERVICE Eco]oF:ica] Services Carbb~d hdd Office 2730 loki:r A"enue West Carlsbad, Califutnia 9200~ " April 13, 1995 Robert A. Leiter, Planning Director Planning Department City of Chula Vista 276 Fourth Avenue Chula Vista, California 91910 Re: MSCP Plan Preserve Design Issues for the City of Chula Vista Dear Mr. Leiter: . During past meetings with the City of Chula Vista and other jurisdictions on March 29 and April 6, 1995, the U.S. Fish and Wildlife Service (Service) and the California Department of Fish and Game outlined issues for the MSCP Plan including preserve design issues. At those meetings, the Service committed to providing a written list to each of the jurisdictions summarizing these issues. Enclosed is the summary of issues for your jurisdiction, separated into major subregional issues and clarification or sub-area issues. The Service would like to take this opportunity to commend the City of Chula Vista on the progress made to date in resolving these issues. Sincerely, /1~e. 'l!~t:dc Gail C. Kobetich Field Supervisor Enclosure 1-6-95-HC-180 cc: Bill Tippets, CDFG . -~ c2tl ~/ PRESERVE DESIGN ISSUES BY JUlUSDICTION " The Fish and Wildlife Service and the California Department of Fish and Game have identified to the jurisdictions several subregional preserve design issues of concern including two under-represented habitat types, grassland and vernal pools, and several specific areas, Otay Ranch, Del Mar Mesa (Neighborhoods 8A. 4 and 5), Santa Fe Valley areas, Fanita Ranch, and City of San Diego cornerstone lands. These issues are further discussed below under "Major Subregional Issue" heading. Other issues under "Clarification or Subarea Issue" consist of either correction or updates of the HHPA map or issues that can be resolved when the applicable jurisdiction applies for its subarea plan. Maior Subre2ional Issue 1) San Miguel Ranch - 2) Otay Ranch - CITY OF CHtlLA VISTA Preserve adequate amounts of the Otay tarplant on San Miguel Ranch or preserve additional known locations within the Otay River Valley area. Resolve the recent reduction of 100% preserve areas to 90% protection and 400 acres of unspecified active recreation within Otay River Valley. Resolve preserve design issues. "" Clarification or Sub-area Issue 1) Otay River Valley Connection 2) San Miguel Ranch - 3) Lower Sweetwater - 4) Amphitheater - Connect Dennery Canyon with Otay River Valley from 805 to Otay Ranch. Connect open space on north and south parcels of San Miguel Ranch through SDG&E lands. Provide adequate habitat/floodway connection and buffer on the River. Minimize noise impacts and revegetate adjacent slopes. ~ =<?J --/0 -., . . . Countv of San Die2o/Chula Vista - Otav Ranch Malor Subre2ional Issue 1) Otay Ranch Preserve Design - Modification of Otay Ranch is needed to address: California gnatcatcher, cactus wren, vernal pool species including California Orcutt grass, Otay Mesa mint, San Diego fairy shrimp, Riverside fairy shrimp, prostrate navarretia, little mousetail, variegated dudleya, Otay tarplant, San Diego thornmint and Orcutt's bird beak. a) Road crossings Otay River Valley Relocate State Route 125 within Johnson Canyon consistent with Caltrans most recent proposals. Delete Alta Road from O'Neal Canyon b) Sal t Creek Relocate development from south and east of Hunte Parkway and pull the parkway back away from Salt Canyon to provide buffers and avoid impacts to habitat in side drainages. c) Otay Lake Relocate development out of the areas south and east of Otay Lakes, reduce development north of Otay Lakes in the resort area including preservation of the K6-9 vernal pools and San Diego thornmint d) Proctor Valley Relocate development from middle Proctor Valley area to resolve preserve design and greater protection for the gnatcatcher e) Inverted L Relocate development from northern and middle portion of the inverted L f) Grassland Preserve additional grassland Clarification or Subarea Issue a) Revegetation Salt Creek and portions of Poggi Canyon contain important linkage areas in need of restoration 10-15 acre Poggi connection b) Recreation 400 acres of unspecified active recreation is proposed in Otay River Valley. Active recreation should be located at the edge of the preserve rather than within the preserve c) Hubbard Springs Provide adequate preserve design and linkage ~ 02,tJ~// THIS PAGE BLANK ~ ..20~/;Z .. . ATTACHMENT B LETTER FROM KATY WRIGHT EASTLAKE DEVELOPMENT COMPANY DATED 5/17/95 . . ~ c2tJr/;J THIS PAGE BLANK ~ p2tJ~)i .. . . . May 17, 1995 Mr. Robert Leiter Planning Director City ofChula Vista 276 4th Avenue Chula Vista, CA 91910 Re The Comments of EastLake Development Company re: The Draft Multiple Species Conservation Program, Dated March I, 1995. Dear Mr Leiter: Thank you for providing EastLake Development Company with an opportunity to comment on the draft MSCP. In summary, our review of the MSCP and its included graphics shows that it erroneously depicts portions of EastLake on several Figures of the MSCP, including 2-2, 2-3, 2-4 and 3.1 as either containing coastal sage scrub habitat type on site, or depicting potential wildlife corridors along the Salt Creek area, which transverses the EastLake Project in a north-south direction. As confirmed by the attached correspondence from Mr. Barry 1. Jones, President of Sweetwater Environmental Biologist, the EastLake Project does not contain any Diegan Coastal Sage Scrub, as the City ofChula Vista's prior EastLake EIR's will reflect. Commencing with the original Master ErR, the EastLake site has been noted as highly disturbed due to dry farming for literally decades. Accordingly, ill.! of the EastLake Project area is dominated by non-native grasslands and other flora, which is not of a type considered to be a "sensitive habitat" within the MSCP. We feel that the depiction of areas within the draft MSCP is neither necessary for the purposes ofa preserve contemplated by the MSCP, nor is it consistent with the existing land use entitlements, which are subject to the EastLake III General Development Plan and Development Agreement. While the General Development Plan may depict areas as open space, that depiction cannot be equated to either the dedication of lands involved, nor legally restrict the land uses to those the MSCP determines as compatible with a preserve. A review of the land uses available to EastLake pursuant to the adopted City Plans for the area (including the City's General Plan) will show there is a wide divergence between the land use activities authorized by the City and the "Compatible Land Use Activities and Preserved Management Guidelines," contained in Chapter 4 of the MSCP, and specifically, Table 4-1 "General Compatibility of Land Uses and Management Activities Within and Adjacent to Preserves. " -?l-= -2fJ-/~ , '~'-,- I .::. ~.,,- ~.......... ~.... ~ EASTLAKE DEVELOPMENT COMPANY 900 lane Avenue Suite 100 Chula Vista. CA 91914 (619) 421-0127 FAX (619) 421-1830 Mr Robert Leiter May 17, 1995 Page Two """' It is clear that the U.S. Fish & Wildlife Service anticipate that under the "Model Implementing Agreement/Management Authorization", Attachment A to the MSCP, the City would "Establish and maintain land use and development project permitting procedures and regulatory programs necessary to implement the MSCP and this Agreement, as described in Section 7 of this Agreement. " Section 6.2 of the Model Implementing Agreement thus requires (under the current draft MSCP depictions of portions of EastLake) that the City under take land use actions inconsistent with the existing approved land uses within the EastLake Plan area. For the reasons noted above, none of the areas erroneously depicted in various Figures of the MSCP are necessarily desirable for preserve purposes. The following errors exist in the draft MSCP: Figure 2-] (all references are to the draft MSCP) depicts the possible existence of Coastal Sage Scrub, native grasslands and oak woodlands on the EastLake Property. · In the EastLake \/illage Center there is a temporary detention base in leading into the ~ Telegraph Canyon Channel. The areas may assume this area to be construed as a wetland, when it is not. . There IS a eucalyptus grove in Salt Creek, not an Oak Woodland as depicted on Figure 2-]. · Contrary to Figure 2-], the dominant habitat type in Salt Creek are disturbed non-native grasslands, with a small area of wetlands. · There may be some coastal sage scrub on the park site south of the Olympic Training Center. There is however, no coastal sage scrub along the westerly edge of upper and lower Otay Lakes within the EastLake Project. Figure 2-4 also contains a number of erroneous depictions of habitat types or public land ownership. This Figure shows public ownership of an area in Salt Creek north of Telegraph Canyon Road (Otay Lakes Road). This depiction is inaccurate and contrary to existing plans for the area. As noted above, the City's classification of this area is as "Open Space" cannot be considered synonymous with the MSCP's determination of a land use which is compatible with a preserve pursuant to MSCP Chapter 4. Nor is the area publicly owned. Figure 2-3 similarly depicts the area within EastLake west of upper Otay Lake, north of Otay Lakes Road (Telegraph Canyon Road) as within public ownership. This area is not publicly owned. '1 .~ ~/f' -/ ~ . . . Mr Robert Leiter May J7, 1995 Page Three Figure 2-7 depicts as "park and preserve" various areas throughout Salt Creek and along the western edge of both upper and lower Otay Lakes. These depictions are inconsistent with the existing adopted General Development Plan and EastLake III Development Agreement for the area The City's depiction of some of these areas as "parks and open space" does not limit their use in a manner consistent with the land use compatibility matrix contained in Chapter 4 of the MSCP. Figure 2-9 contains errors in its depiction of areas of Salt Creek north of Otay Lakes Road. Although these areas are currently used for agricultural purposes, the City's adopted plan for these areas does not require their long term use for agricultural purposes. Figures 2-2 and 2-9 indicate that areas of Salt Creek are "protected land" with a low habitat value. F or the reasons stated above, this is untrue. Figure 3-2 indicates that Chula Vista is to adopt a "hardline" preserve where 90% to 100% of habitat is to be preserved We are concerned with this designation because it is incorrect, yet under the draft Implementing Agreement the City is required to plan the areas as if the depiction is appropriate There are other inappropriate statements in the MSCP as it relates to areas within or adjacent to EastLake For example, the extension of Orange Avenue will impact about 3 acres of wetlands within the southerly edge of Salt Creek. If there is any significant mitigation required for the loss of the adjacent wetland area, we believe that there should be public participation in the long term maintenance of any mitigation area, versus maintenance becoming the responsibility of EastLake Homeowners as assumed by the draft MSCP. Finally, we would note that Figure 1-3 indicates several areas in EastLake as being "100% habitat preserve", which is inconsistent with the current EastLake III General Development Plan and the EastLake III Development Agreement. In response to these inaccuracies, we request the City of Chula Vista correspond in writing to the City of San Diego with respect to the MSCP and specifically request corrections to Figure 1-3, 2- 1,2-2,2-4,2-7,2-9,3-1 and 3-2. Public ownership, the potential for a wildlife corridors, the presence of vegetation type or habitat preservation value within the EastLake Project are all erroneously depicted in the above draft MSCP Figures ~ 02j?~J7 ""'" Mr Robert Leiter May 17, ] 995 Page Four The City's failure to request clarification of these areas will undoubtedly cause it and EastLake Development Company problems in the future because pursuant to an Implementing Agreement, required that the City modify its land uses as a matter consistent with the MSCP. Thank you for an opportunity to comment on this draft. Sincerely, ~ [)MjU Kat\' Wright Project !\lanager CKB!K\\'/jr/gmo Attachment """" cc Mayor Shirley A Horton, City ofChula Vista Councilman Jerry R. Rindone, City of Chula Vista Councilman Scott D. Alevy, City ofChula Vista Councilman John S Moot, City ofChula Vista Councilman Stephen C Padilla, City ofChula Vista John Goss, City Manager, City ofChula Vista Craig K Beam, Esq., Luce, Forward, Hamilton & Scripps ~tl-l15 ""'" . . . Sweetwater Environmental Biologists, Inc. 3838 Camino del Rio North. Su~e 270. Son Diego. Califomia 92108 (619) 62A.2300 Fox (619) 62A.2301 May 16, 1995 Ms. Katy R. Wright Project Manager Eastlake Development Company 900 Lane A venue Chula Vista, California 91914 Subject: Review of the Eastlake Project in relation to the Draft Multiple Species Conservation Program. Dear Ms. Wright: I have reviewed the Eastlake Project in relation to the Draft Multiple Species Conservation Program (MSCP). Two specific issues are addressed in this review: I) refinemenl in the vegetation mapping; and 2) the existing condition of the proposed corridor along Salt Creek and its potentiallong-terrn value for wildlife movement. Both issues are discussed below. I completed an on-site review of the MSCP vegetation map for the Eastlake Project on May 12, 1995. Because of the large coverage area, the vegetation mapping prepared for the MSCP is done at a fairly gross scale and is not intended lobe used on a project specific basis. Based on my site assessment, the primary discrepancy in the mapping occurs in the northeast comer of the property. The MSCP map shows several small patches of Diegan coastal sage scrub occurring on the Eastlake Project. My field review, however, revealed that this area is entirely non-native grassland and dry farmed agricultural land dominated by non-native grasses and an invasive weed (sweet fennel [Foeniculum vulgare]). Native sage scrub species were essentially absent from this area. The only location on the property where any Diegan coastal sage scrub occurs is in the southeastern comer, as depicted on Figure 2-1 of the MSCP. I also reviewed the proposed corridor along Salt Creek (see Figure 3-1 of the MSCP) which traverses the Eastlake Project in a north-south direction. This drainage primarily supports non-native grassland and agricultural vegetation, with little or no wetland vegetation occurring along the entire drainage. Scattered patches of the non-native tamarisk (Tamarix sp.) occur throughout. A box culvert approximately 12-feet high, 10- feet wide and 100-feet long currently runs under Otay Lakes Road. Eucalyptus trees and existing farm buildings occur just downstream of Otay Lakes Road. Much of the ~ ~t9-/1 biological studies. wildlife management. habitot restoration. environmental fesearch . regulotory compliance re$OUl'ce planning. osses.sment, and mitigation. revegetation planning, implementation. and monitoring Ms. Katy R. Wright Eastlake Development Company May ]6, ]995 Page 2 of3 "'""' topography along the drainage consists of very low gradient slopes with a poorly defmed corridor. The Multi-habitat Planning Area depicted on Figure 3-] of the MSCP is based on data provided on Figures 2-2, 2-3, and 2-4 among others. It should be noted, however, that Figure 2-2 (Habitat Evaluation Map) does not even rank the corridor, but simply shows it in agriculture. Figure 2-3, the Core Biological Resource Area and Linkages Map does not include Salt Creek as either a core biological resource area or key linkage for the area. Figure 2-4 identifies the area along Salt Creek as City owned, although it is my understanding based on our conversations, that although this area has been identified as open space on your General Development Plan, it has not been dedicated as open space at this time. In looking at the areas surrounding the Eastlake Project, high quality habitats, in particular Diegan coastal sage scrub, occur to the south and east. The Core Biological Resource Area and Linkages Map (Figure 2-3) identifies these areas as core areas connecting with the Otay River Valley to the south, Otay Lake to the east and the Jamul Mountains to the north. Significant undeveloped lands and redundant corridors through existing Diegan coastal sage scrub occur just east of the Eastlake Project through these areas. """ Based on my review of the MSCP maps and my on-site inspection, the proposed corridor along Salt Creek does not appear warranted for the following reasons: · it was not identified as a core area or key linkage on the Core Biological Resource Area and Linkages Map (Figure 2-3); · it does not support any high value habitats as noted on Figure 2-2 (Habitat Evaluation Map); · the current site conditions do not provide vegetative cover for use as a corridor; and · superior corridors occur to the east through high quality habitats and much larger blocks of contiguous habitat. I would like to add that multiple corridors within any preserve system are generally preferred. However, given the present low wildlife value of the Salt Creek corridor, the length of the corridor (in excess of three miles), and the far superior options for directing wildlife movement through large blocks of habitat and much shorter corridors to the east, '"""\ ~ ..2/9 -;<('/ . . . Ms. Katy R. Wright Eastlake Development Company May 16, 1995 Page 3 of3 suggests that any efforts towards maintaining corridors within the region should be directed towards areas to the east of the Eastlake project. Please let me know if you have any questions or if! may be of further assistance. Sincerely, ~'j J 0 Barry L. Jones President -~ .2t? -'0(. ) THIS PAGE BLANK ~-4J - oZA .. . ATTACHMENT C MEMO FROM ANN MOORE ASSISTANT CITY ATTORNEY DATED 5/17/95 . . ~ ~~c2.3 THIS PAGE BLANK ~-2cJ~c2( t. . DATE: May 17, 1995 SUBJECT: Bob Leiter, Director of Planning Ann Moore, Assistant City Attorney Draft Multiple Species Conservation Program Cl--- ~ TO: FROM: Our Office is in the process of reviewing the PUblic Review Draft Multiple Species Conservation Program ("MSCP"), dated March 1, 1995, and the Model Implementing Agreement, "Attachment A", prepared by the City of San Diego. We intend on providing our comments on the MSCP and the Model Implementing Agreement prior to end of the public review period. However you have requested that we provide you with a preliminary outline of our basic concerns with respect to the MSCP and the Model Implementing Agreement. Since the Implementing Agreement will serve as the document that dictates how the MSCP will actually operate with respect to the local participants we have focused our comments on this document. We have the following comments: . 1. Severability. The Model Implementing Agreement should include a severability clause which would provide the city with protection from the actions of other participants in the MSCP. In other words, the City should have a guarantee that its "Take" permit would not be jeopardized by the actions or inactions of other local jurisdictions. . 2. Withdrawal. The Implementing Agreement should include a provision that would allow the City to withdraw from the MSCP should federal or state laws or regulations change. This is particularly important because of the recent discussions by the Legislature regarding the future of the Endangered Species Act. In addition, should the federal or state government require modifications to the implementation of the MSCP due to "unforeseen circumstances" the City should have the right to withdraw from the MSCP. (See comment Number 4 below.) In addition, our withdrawal from the MSCP should be allowed without penalty or liability and there should be a guarantee that our withdrawal would not impact previous "take" permits issued by the City and relied on by property owners. 3. Covered species. A provision should be added that would allow for the automatic extension of the City's take authority to those species that are presently "covered" by the MSCP but have not yet been listed as a protected or endangered species under the Endangered Species Act. In addition, the federal and state government should not be allowed to ask for new mitigation measures for such species. The Model Implementing Agreement only provides that the MSCP shall be deemed to be adequate to support an application for such a permit. This means that any time an additional covered species is subsequently listed as protected or endangered the city would have to apply for a new "take" permit. ~ ~t:J-~P:- Bob Leiter May 17, 1995 Page 2 """ 4. Unforeseen Circumstance. The Model Implementing Agreement gives the federal and state government too much discretion to change the terms of the MSCP. Specifically, the Model Implementing Agreement provides that the federal and state governments could seek additional mitigation from the City if there is an "Unforeseen Circumstance." The term "unforeseen Circumstance if far too ambiguous and should be more strictly defined. In addition the City should be allowed to withdraw from the MSCP if we disagree with a subsequent change in the terms of the MSCP. 5. Funding. The local jurisdictions are being requested to provide a far greater level of commitment to fund the MSCP than either the federal or state governments. In fact, the Model Implementing Agreement does not adequately obligate the federal or state government to provide funding for the MSCP. In addition it is unclear whether a lack of funding by the federal or state governments would be considered to impact the "proper functioning" of the MSCP. (See comment 7 below.) It is our understanding that federal officials have represented that the local juriSdictions would not be "harmed" if the federal government should not be able ""'" to adequately fund the MSCP. However this representation is not , reflected in either the MSCP or the Model Implementing Agreement. Perhaps, the preserve land requirements should be decreased if the federal government is unable to adequately fund the MSCP. In addition, a provision should be added that the funding responsibilities of the federal and state governments shall not have an impact on the "proper functioning" of the MSCP. 6. Liability. There are a number liability issues with respect to implementing the MSCP. As a result of the recent Supreme Court decision of Dolan v. Citv of Tiaard, 94 D.A.R. 8803 (June 27, 1994), the Endangered Species Act has come under intense scrutiny. Consequently, we can not predict with a great degree of certainty the outcome of a challenge to the MSCP at this stage of its development. However we do know that such a challenge would be expensive to litigate and if the city was to receive an adverse judgment, it could be quite costly. In addition, the MSCP requires the City as well as other jurisdictions to design mitigation policies which could result in permit exactions being imposed that may be held by a court of law not to be roughly proportional to the project's impact. In essence the federal and state governments are spreading the risk of liability from a "takings" downwards to the local jurisdictions. Our office has repeatedly requested that the federal and state government indemnify the city. This request has been refused. At the very least, the federal and state governments should provide the city with an opinion or a representation in the ~ Implementing Agreement regarding the legality of the MSCP and its implementation. ~c2{lP<~ . . . Bob Leiter May 17, 1995 Page 3 7. Properly Functioning. The Model Implementing Agreement provides that additional land or financial compensation or other form of mitigation will not be required so long as the MSCP is "properly functioning." Therefore it is critical that the term "properly functioning MSCP" be defined to our satisfaction in the Implementing Agreement. S. Annexed Lands. We will need to clarify in our Implementing Agreement how annexed lands will be handled. Currently, the federal and state government has represented that take authorizations can only apply to land within the land use jurisdiction of the local entity. We will need to clarify that once land is annexed to the City, the City's take authorization will automatically apply to that land and that we can include this land in our subarea plans. As we stated above, we have provided you with only our preliminary review of the MSCP and Model Implementing Agreement. We anticipate having additional questions and comments upon our further review of these documents. Should you have any further questions please let me know. cc: Bruce Boogaard, City Attorney (M:\Hole\Attorney\MSCP,Mel) '~~~~7 THIS PAGE BLANK ~ c2jJ- 0( r t. ATTACHMENT D COMMENTS FROM OTHER CITY DEPARTMENTS -~ c2(/ ~~ '1 THIS PAGE BLANK ~ ~:Jt? .. - . . . . /".. ,"';' " MEMORANDUM April 14, 1995 File # YE-OOl TO: Bob Leiter, Director of Planning Work~ ( Program (MSCP) Plan FROM: John P. Lippitt, Director of Public SUBJECT: Draft Multiple Species Conservation This is in response to your memorandum dated ~pril 10, 1995 asking us to review and provide comments on the subject document. The second paragraph under Section 3.4.1 titled Subarea Plan Approval indicates that subarea plans may be prepared by developers using the adopted MSCP Plan as a framework plan and incorporating its guidelines. Since the boundaries of the biological core areas and linkages is not clearly defined in the MSCP Plan, there may be a conflict between the developers' subarea plan and the city's plans of Infrastructure, Public Facilities and Circulation Element development. It will be important for us in the future during the Implementing Agreement and Subarea Plan stage to assess the impact of the MSCP Plan upon the city's existing and future infrastructure and public works. Also, it will be important to examine whether certain infrastructure systems, such as sewer or other utility lines will be accommodated within the planned habitat areas. SMN:rb (M:\HOMB\BNGINBBR\AOVPLAN\MSCP.SMN) -~ -2tl~ J / 1 May 4. 1995 To: Bob Leiter Director of Planning Carol Gove n I D Fire Marshal ~ From: Subject: Draft MSCP Plan I have reviewed the above document and offer the following comments. PaQe 3 . 85 . Habitat Maintenance Assessment District (58445) I realize this section deals with the public financing of long-term maintenance of natural habitat. but would it not be appropriate to include funding that would cover the cost of ., brush management as well. Paae 3 .89 . MSCP ADDroval and Implementation Process Perhaps this is the section in which general brush management guidelines are mentioned. Paae 4 - 5 . 4.2.3 DeveloDment This is an area where fuel management is mentioned. but not in the context of brush management and hazard abatement. Paae 4 . 7 .4.3 . Guidelines for Preserve ManaQement Activities. 4.3.1 . Fire Manaaement To fire officials, this section is most critical. Fire Management Plans should be detailed and very specific. Paae 6 . 1 . Statement of Assurances This section should also address brush management for life safety considerations. "'" . Thank you for the extended time in which to comment. 0216-95 ~ c:2~-3..2 . . . MEMORANDUM April 27, 1995 TO: Bob Leiter, Planning Director (~ . Chris Salomone, Community Development Director - VIA: Joe Monaco, Environmental Projects Manager at' SUBJECT: Community Development Department Comments on Draft MSCP FROM: The draft MSCP identifies "biological core areas" and "linkages" and further requires that the preserve design include 70% to 80% of these areas. The identified core areas and linkages affect every major current Community Development project, including the Midbayfront project, the MCA Amphitheater/City Corporation Yard, the Veteran's Home, the Lower Sweetwater Valley project, and properties along the Sweetwater River between 1-5 and 1-805. Three major issues exist with respect to the application of preserving a specified percentage of habitat within these areas. First, all of the core/linkage areas include land within other jurisdictions. Limitation on development within these areas would require allocation of allowable development percentages by jurisdiction or be complicated by oversight by a regional authority. Second, resource quality varies from one core/linkage area to another. It does not seem reasonable to apply a blanket percentage of preserve area to all core/linkage areas since some resources may require protection of not only the resource area, but a substantial buffer from development as well. Others may require direct protection of the resource, allowing a significantly greater proportion of development. Third, some core/linkage areas contain a greater quantity of habitat than others. For instance, some core areas may be laced with developable land while others contain more contiguous habitat. Universal development limitations would not recognize these differences. Although it appears that the core/linkage areas have been established for solid habitat planning reasons, the actual boundaries appear to be quite general. Community Development has a great concern over application of specific limitations on development within these imprecisely delineated areas. We would suggest that the core/Jinkage concept be retained as a preserve planning tool, but that there not be a limitation on development within those areas as currently depicted in the draft plan. ~ c2!/-J3 Memorandum """" DATE: April 28, 1995 TO: Bob Leiter, Planning Director y Ranch Project FROM: Gerald J. Jamriska, Special Planning RE: Otay Ranch Project Team Comments on the MSCP The Otay Ranch Project Team has initially reviewed the MSCP Plan and have comments on the following major areas: Biological Preserve Design Checklist . Buffer Areas (p 3-45) The plan calls for adequate buffers depending on adjacent land uses and resources. They indicate edge effect studies suggest a minimum of 150 feet. More information is needed on the location and use of the 1 50-foot buffer. The interface of this buffer with the Overall Project Design unifying Dominate Skyline Landscape treatment may be in conflict. """" . Preserve shape that minimizes edge effects (pJ-45) The Otay Ranch Preserve area has detailed studies that justifY the preserve boundary. Vertical as well as horizontal separation should be considered between the development area and the preserve. . Management Feasibility (pJ-45) Land uses within and adjacent to preserve have to comply with compatibility guidelines. These guidelines need to be reviewed in relationship to the Otay Ranch GDP/SRP. Resource Protection Guidelines · Compensating Mitigation (p.3-65) The Otay Ranch has already determined "compensating mitigation" as part of the Phase 1 RMP and will further identifY specific mitigation under Phase 2. Avoidance, impact minimization and replacement have all been determined in the RMP. We are concerned that additional mitigation will be required beyond the requirements of the RMP. Subarea Plans · Subarea Plan Approval (p. 3-90) We are concern as to whether the Phase 2 RMP will satisfY the Subarea Plan --.., requirements. Criteria for the subarea plan needs to be established to ensure the RMP is consistent with the wildlife agencies plans for subareas. -~ .2tfJ-J1 . . . . . . Preserve Management (p. 3-95) Additional information is needed on the Preserve Management to ensure the Otay Ranch Preserve Owner Manager is consistent. We are concerned about conflicts with the goals of the Otay Ranch GDP for the Preserve Owner Manager. MSCP Plan Amendments and Data Base Updates . Incorporate new scientific data on habitats and species (p.3-95) The Project Team is concerned about adding additional species to the Plan after its adoption. The Otay Ranch has a 30 to 50 year build out and needs more assurance these rules will be consistent and not changed. MSCP Plan Implementation . Annual Accounting and Biological Monitoring (p. 3-96) The RMP requires monitoring and reporting on the preserve. We are concern about consistency in reporting standards and that efforts not be duplicated with the Phase 2 RMP reporting. Guidelines for Preserve Land Uses . Recreation (p. 4-3) Weare concern that active recreational land uses have been identified as incompatible with the core areas and linkages. It seems inconsistent to us that single-family homes on large lot would be considered compatible while active play fields and golf courses are not compatible. . Fencing (p.4-9) The fencing standards described here are not consistent with the fencing for the Ranch listed in the Overall Design Plan. Statement of Assurances . Assurances (p. 6-1) A definition of extraordinary circumstances is needed to understand when additional species or land might be added to the Plan. The Otay Ranch, as a long term project, needs better assurance that the Plan will remain consistent. If the biological data is updated every year is there the potential for extraordinary circumstances. Additional species listing under the ESA are required to be considered by the wildlife agencies. How can there be assurance if the Plan is going to change? What possible species could be added? If this Program is comprehensive, then every species should be covered. -xr- d.tJ~J5 --::,. . . , 41.19.95 To: Jess Volenzuelo, Director of Porks and Recreation From: Mortin Schmidt, Londscope Architect r<=;~ RE: MSCP PLAN I hove reviewed the document referenced above for Items and concems relating to porks, open spoce ond troils The following ore my findings speCifiC to above identified Issues. Speciflcolly: 1. Section Four of the document contoins 0 section that addresses the Issue of land uses in the Core Areo, Linkoges ond Buffer Areo Table 41-1 and 41-2 tist uses for generol activities and recreational activities, respectively. The text and Table 41-2 lists recreational activities tho1 moy or may not be compatible or Conditionally compatible with the MSCP Core, Linkoge and Buffer areas. I hove attached cOpies of these poges to this memo for your r~w. Some octivlties listed for incluson or exclUSion make sense, ond some don't. Of cone em relating to the OIoy Volley Regional Pork is the identification of the placement of octlve recreation in , the buffer zone. This mayor may not be possible In the westem reoch of the regional pork where the concept plan i$ proposlng recreation directly Odjocent to existing development to north, ond the riparian zone Of the south. An InsuffICient bufterzone occurs here to occommodote active recreation based on the reQuirements and descriptions in the text. 2. Management plans ore also Identified os 0 reQuirement of the MSCP Program. How would this reQuirement 'Mesh' with the OVRP ond OIoy Ronch Preserve Owner Manager Programs? It appears that the MSCP will not preCh.lde the JEPA and the City of Chulo Vista from utilizing the OIoy Volley os 0 portion of the 'Greenbelt' ond the OVRP, SpeCifICS regordlng the proper location. site plonning ond Impacts of octive recreatiOn Is on Issue that wDl hove to be addressed to determine If the oreos that been Indicated on the OVRP Concept PIon for recreation ore occeptoble. ') ~ c2o~Jb . May ~7, 1995 Mr. Robert Leiter Planning Director City ofChula Vista 276 4th Avenue Chula Vista, CA 91910 Re: The Comments of EastLake Development Company re: The Draft Multiple Species Conservation Program, Dated March 1,1995. Dear Mr. Leiter: Thank you for providing EastLake Development Company with an opportunity to comment on the draft MSCP. In summary, our review of the MSCP and its included graphics shows that it erroneously depicts portions of EastLake on several Figures of the MSCP, including 2-2, 2-3, 2-4 and 3.1 as either containing coastal sage scrub habitat type on site, or depicting potential wildlife corridors along the Salt Creek area, which transverses the EastLake Project in a north-south direction. As confirmed by the attached correspondence from Mr. Barry L. Jones, President of Sweetwater Environmental Biologist, the EastLake Project does not contain any Diegan Coastal Sage Scrub> as the City of Chula Vista's prior EastLake ErR's will reflect. Commencing with the original Master ErR, the EastLake site has been noted as highly disturbed due to dry farming for literally decades. Accordingly, all of the EastLake Project area is dominated by non-native grasslands and other flora, which is not of a type considered to be a "sensitive habitat" within the MSCP. We feel that the depiction of areas within the draft MSCP is neither necessary for the purposes of a preserve contemplated by the MSCP, nor is it consistent with the existing land use entitlements, which are subject to the EastLake III General Development Plan and Development Agreement. While the General Development Plan may depict areas as open space, that depiction cannot be equated to either the dedication of lands involved, nor legally restrict the land uses to those the MSCP determines as compatible with a preserve. A review of the land uses available to EastLake pursuant to the adopted City Plans for the area (including the City's General Plan) will show there is a wide divergence between the land use activities authorized by the City and the "Compatible Land Use Activities and Preserved Management Guidelines," contained in Chapter 4 of the MSCP, and specifically, Table 4-1 "General Compatibility of Land Uses and Management Activities Within and Adjacent to Preserves. " 02.tJ~ J ') fJ'" ..~ ,:."'~'''''' ... .... ..... EASTLAKE DEVELOPMENT COMPANY 900 Lane Avenue Suite 100 Chula V1sta. CA 91914 (619) 421-0127 FAX (619) 421-1830 .. Mr. Robert Leiter May 17,1995 Page Two It is clear that the u.s. Fish & Wildlife Service anticipate that under the "Model Implementing AgreementlManagement Authorization", Attachment A to the MSCP, the City would "Establish and maintain land use and development project permitting procedures and regulatory programs necessary to implement the MSCP and this Agreement, as described in Section 7 of this Agreement. " Section 6.2 of the Model Implementing Agreement thus requires (under the current draft MSCP depictions of portions of EastLake) that the City under take land use actions inconsistent with the existing approved land uses within the EastLake Plan area. For the reasons noted above, none of the areas erroneously depicted in various Figures of the MSCP are necessarily desirable for preserve purposes. The following errors exist in the draft MSCP: Figure 2-1 (all references are to the draft MSCP) depicts the possible existence of Coastal Sage Scrub, native grasslands and oak woodlands on the EastLake Property. . In the EastLake Village Center there is a temporary detention base in leading into the Telegraph Canyon Channel. The areas may assume this area to be construed as a wetland, when it is not. . There is a eucalyptus grove in Salt Creek, not an Oak Woodland as depicted on Figure 2-1. . Contrary to Figure 2-1, the dominant habitat type in Salt Creek are disturbed non-native grasslands, with a small area of wetlands. . There may be some coastal sage scrub on the park site south of the Olympic Training Center. There is however, no coastal sage scrub along the westerly edge of upper and lower Otay Lakes within the EastLake Project. Figure 2-4 also contains a number of erroneous depictions of habitat types or public land ownership. This Figure shows public ownership of an area in Salt Creek north of Telegraph Canyon Road (Otay Lakes Road). This depiction is inaccurate and contrary to existing plans for the area. As noted above, the City's classification of this area is as "Open Space" cannot be considered synonymous with the MSCP's determination of a land use which is compatible with a preserve pursuant to MSCP Chapter 4. Nor is the area publicly owned. Figure 2-3 similarly depicts the area within EastLake west of upper Otay Lake, north of Otay Lakes Road (Telegraph Canyon Road) as within public ownership. This area is not publicly owned. c2/J / J Y' Mr. Robert Leiter May 17, 1995 Page Three Figure 2-7 depicts as "park and preserve" various areas throughout Salt Creek and along the western edge of both upper and lower Otay Lakes. These depictions are inconsistent with the existing adopted General Development Plan and EastLake III Development Agreement for the area. The City's depiction of some of these areas as "parks and open space" does not limit their use in a manner consistent with the land use compatibility matrix contained in Chapter 4 of the MSCP. Figure 2-9 contains errors in its depiction of areas of Salt Creek north of Otay Lakes Road. Although these areas are currently used for agricultural purposes, the City's adopted plan for these areas does not require their long term use for agricultural purposes. Figures 2-2 and 2-9 indicate that areas of Salt Creek are "protected land" with a low habitat value. For the reasons stated above, this is untrue. Figure 3-2 indicates that Chula Vista is to adopt a "hardline" preserve where 90% to 100% of habitat is to be preserved. We are concerned with this designation because it is incorrect, yet under the draft Implementing Agreement the City is required to plan the areas as if the depiction is appropriate. There are other inappropriate statements in the MSCP as it relates to areas within or adjacent to EastLake. For example, the extension of Orange Avenue will impact about 3 acres of wetlands within the southerly edge of Salt Creek. If there is any significant mitigation required for the loss of the adjacent wetland area, we believe that there should be public participation in the 'long term maintenance of any mitigation area, versus maintenance becoming the responsibility of EastLake Homeowners as assumed by the draft MSCP. Finally, we would note that Figure 1-3 indicates several areas in EastLake as being "100% habitat preserve", which is inconsistent with the current EastLake III General Development Plan and the EastLake III Development Agreement. In response to these inaccuracies, we request the City of Chula Vista correspond in writing to the City of San Diego with respect to the MSCP and specifically request corrections to Figure 1-3,2- 1,2-2,2-4,2-7,2-9,3-1 and 3-2. Public ownership, the potential for a wildlife corridors, the presence of vegetation type or habitat preservation value within the EastLake Project are all erroneously depicted in the above draft MSCP Figures. ;2(J~ J / , Mr. Robert Leiter May 17, 1995 Page Four The City's failure to request clarification of these areas will undoubtedly cause it and EastLake Development Company problems in the future because pursuant to an Implementing Agreement, required that the City modify its land uses as a matter consistent with the MSCP. Thank you for an opportunity to comment on this draft. Sincerely, rJj UJ+t Katy Wright Project Manager CKBIKW/jr/gmo Attachment cc Mayor Shirley A. Horton, City of Chula Vista Councilman Jerry R. Rindone, City of Chula Vista Councilman Scott D. Alevy, City ofChula Vista Councilman John S. Moot, City ofChula Vista Councilman Stephen C. Padilla, City ofChula Vista John Goss, Ciry Manager, City of Chula Vista Craig K. Beam, Esq., Luce, Forward, Hamilton & Scripps c=2f)- yf/ Sweetwater Environmental Biologists, Inc. 3838 Camino del Rio North. Suite 270. San Diego. California 92108 (619) 624-2300 Fax (619) 624-2301 May 16, 1995 Ms. Katy R. Wright Project Manager Eastlake Development Company 900 Lane Avenue Chula Vista, California 91914 Subject: Review of the Eastlake Project in relation to the Draft Multiple Species Conservation Program. Dear Ms. Wright: I have reviewed the Eastlake Project in relation to the Draft Multiple Species Conservation Program (MSCP). Two specific issues are addressed in this review: 1) refinement in the vegetation mapping; and 2) the existing condition of the proposed corridor along Salt Creek and its potential long-term value for wildlife movement. Both issues are discussed below. I completed an on-site review of the MSCP vegetation map for the Eastlake Project on May 12, 1995. Because of the large coverage area, the vegetation mapping prepared for the MSCP is done at a fairly gross scale and is not intended to be used on a project specific basis. Based on my site assessment, the primary discrepancy in the mapping occurs in the northeast comer of the property. The MSCP map shows several small patches of Diegan coastal sage scrub occurring on the Eastlake Project. My field review, however, revealed that this area is entirely non-native grassland and dry farmed agricultural land dominated by non-native grasses and an invasive weed (sweet fennel [Foeniculum vulgare]). Native sage scrub species were essentially absent from this area. The only location on the property where any Diegan coastal sage scrub occurs is in the southeastern comer, as depicted on Figure 2-1 of the MSCP. I also reviewed the proposed corridor along Salt Creek (see Figure 3-1 of the MSCP) which traverses the Eastlake Project in a north-south direction. This drainage primarily supports non-native grassland and agricultural vegetation, with little or no wetland vegetation occurring along the entire drainage. Scattered patches of the non-native tamarisk (Tamarix sp.) occur throughout. A box culvert approximately 12-feet high, 10- feet wide and 100-feet long currently runs under Otay Lakes Road. Eucalyptus trees and existing farm buildings occur just downstream of Otay Lakes Road. Much of the d,?7~tJ / biological studies. wildlife management. habitat restoration. environmental research. regulatory compliance resource planning. assessment. and mitigation. revegetation planning, implementation. and monitoring Ms. Katy R. Wright Eastlake Development Company May 16, 1995 Page 2 of 3 topography along the drainage consists of very low gradient slopes with a poorly defmed corridor. The Multi-habitat Planning Area depicted on Figure 3-1 of the MSCP is based on data provided on Figures 2-2, 2-3, and 2-4 among others. It should be noted, however, that Figure 2-2 (Habitat Evaluation Map) does not even rank the corridor, but simply shows it in agriculture. Figure 2-3, the Core Biological Resource Area and Linkages Map does not include Salt Creek as either a core biological resource area or key linkage for the area. Figure 2-4 identifies the area along Salt Creek as City owned, although it is my understanding based on our conversations, that although this area has been identified as open space on your General Development Plan, if has not been dedicated as open space at this time. In looking at the areas surrounding the Eastlake Project, high quality habitats, in particular Diegan coastal sage scrub, occur to the south and east. The Core Biological Resource Area and Linkages Map (Figure 2-3) identifies these areas as core areas connecting with the Otay River Valley to the south, Otay Lake to the east and the Jamul Mountains to the north. Significant undeveloped lands and redundant corridors through existing Diegan coastal sage scrub occur just east of the Eastlake Project through these areas. Based on my review of the MSCP maps and my on-site inspection, the proposed corridor along Salt Creek does not appear warranted for the following reasons: . it was not identified as a core area or key linkage on the Core Biological Resource Area and Linkages Map (Figure 2-3); . it does not support any high value habitats as noted on Figure 2-2 (Habitat Evaluation Map); . the current site conditions do not provide vegetative cover for use as a corridor; and . superior corridors occur to the east through high quality habitats and much larger blocks of contiguous habitat. I would like to add that multiple corridors within any preserve system are generally preferred. However, given the present low wildlife value of the Salt Creek corridor, the length of the corridor (in excess of three miles), and the far superior options for directing wildlife movement through large blocks of habitat and much shorter corridors to the east, ffi- if ;2... Ms. Katy R. Wright Eastlake Development Company May 16, 1995 Page 3 of3 suggests that any efforts towards maintaining corridors within the region should be directed towards areas to the east of the Eastlake project. Please let me know if you have any questions or if! may be of further assistance. Sincerely, ~'J J 0 Barry L. Jones President cM~ (3