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HomeMy WebLinkAbout2006/12/05 Item 10 COUNCIL AGENDA STATEMENT Item No.: ,\ 0 Meeting Date: 12/<;/06 SUBMITTED BY: Resolution of the City Council of the City of Chula Vista approving a three-party agreement between the City of Chula Vista; Terry A. Hayes Associates LLC, Consultant; and CV -42 Investments, LLC, Applicant, related to preparation of an Environmental Impact Report for the Riverwalk Project, and authorizing the Mayor to execute said agre=ent. Director of Planning and Buildin~ Interim City Manager 11 (4/5th8 Vote: YeS-No-X-) ITEM TITLE: REVIEWED BY: CV-42 Investments, LLC (Applicant) has filed an application for the Riverwalk project. The Environmental Review Coordinator has determined that the proposed project requires the preparation of an Environmental Impact Report (EIR). The item before the City Council is a request for the City Council to approve the proposed Applicant-funded contract with Terry A. Hayes Associates LLC for an amount not to exceed $182,615 to provide consultant services for the preparation of the Riverwalk EIR. RECOMMENDATION: That the City Council adopt a Resolution approving a three-party agre=ent between the City of Chula Vista; Terry A. Hayes Associates LLC, Consultant; and CV-42 Investments, LLC, Applicant, for consulting services related to the preparation of an EIR for the Riverwalk project, and authorizing the Mayor to execute said agre=ent. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: R~~kgr()1mcl The Applicant has submitted an application for the processing of the Riverwalk project, including a General Plan Amendment, Planned Community Zone Reclassification (including General Development Plan, Sectional Planning Area (SPA) Plan, and District Zoning Regulations), Preliminary Grading Plan, Tentative Subdivision Map, and Design Review. Pursuant the California Environmental Quality Act (CEQA) the Environmental Review Coordinator has determined that the proposed project requires the preparation of an EIR. Planning and Building Department staff does not have the available time or particular expertise to prepare the needed EIR. Therefore, the Applicant must enter into a three-party agreement for the preparation of the CEQA documentation. 10-1 Page 2, Item No.: \ 'D Meeting Date: 12/'i/Oti The 61. 12-acre project site is located in the City of Chula Vista on the southwest quadrant of the SR-54 and I-80S freeway interchange and east of Second Avenue. The site is located in Chula Vista's Northwest Planning Area, along the northern City boundlliy. The majority of the project site is in private ownerships (totaling 46.7 acres), and approximately 14.4 acres are owned by the City of Chula Vista Redevelopment Agency. The project site is presently vacant with the exception of an area in private ownership along the western portion of the site that contains a KOA campground facility. The Applicant proposes to develop between 450 and 600 attached and detached dwelling units, which would be up to three-stories in height. A percentage of the dwelling units will be designated as affordable housing. Additionally, the proposed development will contain a community park and a community purpose facility. rOl1"illlf:::l11t ~p:rvir.p:~ ~p:lf':r.t;()l1 Prn(':p:"" On August 16,2006, the Environmental Review Coordinator distributed a Request for Proposals (RFP) to the Association of Environmental Professionals and to all consulting firms listed on the City's list of Qualified Environmental Consultants, inviting prospective Consultants to submit proposals for the proposed Riverwalk EIR. A Selection Committee was established pursuant to Section 2.56.110 of the Municipal Code to review the proposals and conduct interviews of the most qualified firms based on established evaluation criteria. The City received four proposals. The Selection Committee reviewed and ranked the proposals based on company experience, quality of management team, capacity to perform the work, proj ect understanding, proposal quality and clarity, and competitive billing rates. The Selection Committee interviewed all four firms and recommended TARA to perform the required services. Terry A. Hayes Associates LLC (TARA) is uniquely qualified to serve as the Environmental Consultant for this contract based on their familiarity with the urban nature of the site, their redevelopment experience, technical expertise in the areas of noise, air quality and Health Risk Assessments, and their demonstrated familiarity with project features and requirements. TARA is very experienced in analyzing complex issues and preparing EIRs that are adequate under CEQA. TARA represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City of Chula Vista within the necessary timeframes. The Environmental Review Coordinator has negotiated the details of these agreements ill accordance with the Environmental Review Procedures. Sr,"I''' ofWnrk TARA will function as the Environmental Consultant to the City of Chula Vista under a three- 10-2 Page 3, Item No.: 10 Meeting Date: 12/"i101i party agreement with the Applicant and under the supervIsIOn of the City's Environmental Review Coordinator. The general responsibilities of the Enviro~ental Consultant will include the following: . . Review of the available project information; . Preparation of air quality and noise technical reports; . Preparation of Screencheck draft and final EIRs; . Preparation of responses to comments received during public review; . Preparation of Findings, Statement of Overriding Considerations, if required, and the Mitigation Monitoring Reporting Program; and Attendance at team meetings and public hearings. The scope of work for this contract covers the preparation of an EIR that will evaluate the potential impacts associated with the proposed Riverwalk SPA Plan and Tentative Subdivision Map. C:nntr"ct ""ymAl1t The total cost of the contract for consulting services is $182,615, which includes a 25% contingency ($36,523) for additional services to cover unforeseen issues that may arise during preparation of the EIR and if determined to be necessary by the City's Environmental Review Coordinator. The project applicant will pay all consultant costs, as well as reimburse any City staff time associated with preparation of the EIR through a separate deposit account. The City Attorney's Office has reviewed and approved the form of the contract. DECISION-MAKER CONFLICTS: Staff has reviewed the property holdings of the City Council and has found no such holdings within 500 feet of the property which is the subject of this action. FISCAL IMPACT: There will be no resulting impact to the General Fund. CV -42 Investments, LLC will fully compensate the consultant and City staff time through deposit accounts. Attachments: 1. Three Party Agreement between the City of Chula Vista, TAHA, and CV-42 Investments, LLC 10-3 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA; TERRY A. HAYES ASSOCIATES, LLC, CONSULTANT; AND CV-42 INVESTMENTS LLC, APPLICANT, RELATED TO PREPARATION OF AN ENVIRONMENTAL IMPACT REPORT FOR THE RIVERWALK SECTIONAL PLANNING AREA (SPA) PLAN AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the Applicant has submitted an application for the processing of the Riverwalk Proj ect; WHEREAS, pursuant the California Environmental Quality Act (CEQA) the Environmental Review Coordinator has determined that the proposed project requires the preparation of an EIR; WHEREAS, on August 16, 2006, the Environmental Review Coordinator distributed a Request for Proposals (RFP) to the Association of Environmental Professionals and to all consulting firms listed on the City's list of Qualified Environmental Consultants, inviting prospective Consultants to submit proposals for the proposed Riverwalk EIR; WHEREAS, four proposals were submitted to the City in response to the RFP; WHEREAS, a Selection Committee was established pursuant to Section 2.56.110 of the Municipal Code to review the qualifications and conduct interviews of the most qualified firms based on established evaluation criteria; WHEREAS, the Selection Committee interviewed all four firms and recommended Terry A. Hayes Associates, LLC. to perform the required services for the City; WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with the Environmental Review Procedures; WHEREAS, the Applicant has deposited or will deposit funds for the consulting services necessary for the preparation of the environmental documents; WHEREAS, Terry A. Hayes Associates, LLC. is uniquely qualified to serve as the Environmental Consultant for this contract based on their familiarity with the urban nature of the site, their redevelopment experience, technical expertise in the areas of noise, air quality and Health Risk Assessments and their demonstrated familiarity with project features and requirements; 10-4 WHEREAS, Terry A. Hayes Associates, LLC. represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City of Chula Vista within the necessary timeframes; and WHEREAS, the proposed contract with Terry A. Hayes Associates, LLC. to provide consultant services would be in an amount not to exceed $146,092 with an additional $36,523 for additional services should they be necessary. .. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the three-party agreement between the City of Chula Vista; Terry A. Hayes LLC (Consultant), and CV-42 Investments, LLC (Applicant) to prepare an EIR for the Riverwalk Project. 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. Approved as to form by ~UaJ!r'JW ~~oore ( City Attorney Presented by James D. Sandoval Director of Planning and Building 10-5 THE ATTACHED AGREEJ\ffiNT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~b~ fJJ~~ Ann Moore City Attorney Dated: 11~30-0(P Three-Party Agreement between City of Chula Vista, Terry A. Hayes Associates, LLC, Consultant, and CV-42 Investments LLC, Applicant F or Consulting Work to be Rendered with regard to Applicant's Riverwalk Sectional Planning Area (SPA) Plan 10-6 Three-Party Agreement Between City of Chula Vista, Terry A. Hayes Associates LLC, Consultant, and CV-42 Investments, LLC, Applicant For Consulting Work to be Rendered with regard to Applicant's Project 1. Parties. This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of Cali forma, the person designated on the attached Exhibit A as "Consultant", Terry A. Hayes Associates LLC, whose business form and address are indicated on the attached Exhibit A, and the persons collectively designated on the attached Exhibit A as "Applicant", CV -42 InvestIIlents, LLC, whose business forms and addresses are indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals. Warranties and Representations. 2.1. Warranty of Ownership. Applicant warrants that Applicant is the owner of approximately 61.92 acres of land ("Property") commonly known as, or generally located as, described on Exhibit A, Paragraph I, or has an option or other entitlement to develop said Property. 2.2. Applicant desires to develop the Property with the Project described on Exhibit A, Paragraph 2, and in that regard, has made an application ("Application") with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, Paragraph 3. 2.3. In order for the City to process the Application of Applicant, work of the general nature and type described in Exhibit A, Paragraph 4, ("Work") will need to be completed. 2.4. City does not presently have the "in-house" staff or resources to process the application within the time frame requested for review by the Applicant. 2.5. This agreement proposes an arrangement by which Applicant shall retain, and be liable for the costs of retaining, Consultant, who shall perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. 2.6. Additional facts and circumstances regarding the background for this agreement are set forth on Exhibit B. 11/2812006 Three Party Agreement Page 1 10-7 3. Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO BY AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: 3.1. Employment ofConsultai1t bv Applicant. : Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled "General Nature of Consulting Services", ("General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 5, entitled "Detailed Scope of Work", ("Detailed Services"), and all services reasonably necessary to accomplish said General Services and Detailed Scope of Work, and shall deliver such documents required ("Deliverables") herein, all within the time frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are set forth, within a reasonable period of time for the diligent execution of Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perform said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional 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, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. Compensation of Consultant. Applicant shall compensate Consultant for all services rendered by Consultant without regard to the conclusions reached by the Consultant, and according to the terms and conditions set forth in Exhibit C adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, by paying said amount to the City, within 15 days of Consultant's billing, or in accordance with the security deposit provisions of Paragraph 3.3 and Exhibit C, if checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liable for 11/28/2006 Three Party Agreement Page 2 10-8 the compensation unless it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. 3.2.1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ("Additional Services") are needed from Consultant of the type Consultant is qualified to render or reasonably related to the Services Consultant is otherwise required to provide by this Agreement, the Consultant agrees to provide such additional services on a time and materials basis paid for by Applicant at the rates set forth in Exhibit C, unless a separate fixed fee is otherwise agreed upon in writing for said Additional Work between the parties. 3.2.1.1. In the event that the City shall determine that additional work is required to be performed above and beyond the scope of work herein provided, City will consult with Applicant regarding the additional work, and if thereupon the Applicant fails or refuses to arrange and pay for said Additional Services, the City may, at its option, suspend any further processing of Applicant's Application until the Applicant shall deposit the City's estimate of the costs of the additional work which the City determines is or may be required. Applicant shall pay any and all additional costs for the additional work. 3.2.2. Reductions in Scope ofW ork. City may independently, or upon request from Consultant, from time to time reduce the 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. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Security for Pavment ofComoensation bv Ap1?licant. 3.3 .1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3 .1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this agreement. 3.3 .1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 11/28/2006 Three Party Agreement Page 3 10-9 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this Agreement and any claims resulting therefrom. 3.3.1.1.4. Applicant shall be notified within 30 days after of the use of the Deposit in any manner. Nothing herein shall invalidate use of the Deposit in the manner herein authorized. 3.3.1.1.5. At such time as City shall reasonably determine that inadequate funds remain on Deposit to secure future compensation likely due Consultant or City, City may make demand of Applicant to supplement said Deposit Amount in such amount as City shall reasonably specifY, and upon doing so, Applicant shall, within 30 days pays said amount ("Supplemental Deposit Amount") to City. Said Supplement Deposit Amount or Amounts shall be governed by the same terms of trust governing the original Deposit. 3.3.2. Withholding of Processing. In addition to use of the Deposit as security, in order to secure the duty of Applicant to pay Consultant for Services rendered under this agreement, City shall be entitled to withhold processing of Applicant's Application upon a breach of Applicant's duty to compensate Consultant. 4. Non-Service Related Duties of Consultant. 4.1. 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 approval of the City: 4.1.1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4.1.2. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, 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"). 4.1.3. Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 11/28/2006 Three Party Agreement Page 4 10-10 4.2. Proof of Insurance Coverage. 4.2.1. 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. 4.2.2. 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 and Applicant demonstrating same: 4.2.3 Security for Performance - Performance Bond. In the event that the need for a Consultant to provide a Performance Bond arises, then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, htto://www.fms.treas.gov/c570, and whose underwriting liroitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount shall be indicated in an attachment as "Performance Bond" Exhibit. 4.3. Public Statements. All public statements and releases to the news media shall be the responsibility of the City and the Applicant. The Consultant shall not publish or release news items, articles or present lectures on the Project, either during the course of the study or after its completion, except on written concurrence ofthe City and Applicant. 4.4. Communication to Applicant. Consultant shall not communicate directly to the Applicant except in the presence of the City, or by writing.an exact copy of which is siroultaneously provided to City, except with the express consent of City. The Consultant may request such meetings with the Applicant to ensure the adequacy of services performed by Consultant. 11/28/2006 Three Party Agreement Page 5 10-11 5. Non-Compensation Duties of the Applicant. 5.1. Documents Access. The Applicant shall provide to the Consultant, through the City, for the use by the Consultant and City, such documents, or copies of such documents requested by Consultant, within the possession of Applicant reasonably useful to the Consultant in performing the services herein required of Consultant, including but not limited to those described in Exhibit A, Paragraph 7. 5.2. ProperlY Access. The Applicant hereby grants permission to the City and Consultant to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of the Applicant. Consultant shall promptly repair any damage to the subj ect property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 6. Administrative Representatives. Each party designates the individuals ("Administrators") indicated in Exhibit A, Paragraph 8, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 7. Conflicts of Interest. 7.1. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 9, 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 his economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 9 of Exhibit A, or if none are specified, then as determined by the City Attorney. 7.2. Decline to Participate. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. 1lI28/2006 Three Party Agreement Page 6 10-12 7.3. 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. 7.4. 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. 7.5. 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 AttomeyofCity 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. 7.6. 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 the property which is the subject matter of the Project, or in any property within 10 radial miles from the exterior boundaries of the property which is the subject matter of the Project, or ("Prohibited Interest"). 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 by Applicant or by any other party as a result of 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 ofthis Agreement, or for 12 months after the expiration of this Agreement. 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. 11/28/2006 Three Party Agreement Page 7 10-13 8. Default of the Consultant for Breach. This agreement may be terminated by the City for default if the Consultant breaches this agreement or if the Consultant refuses or fails to pursue the work under this agreement or any phase of the work with such diligence which would assure its completion within a reasonable period of time. Termination of this agreement because of a default of the Consultant shall not relieve the Consultant from liability of such default. 9. City's Right to Terminate Payment for Convenience. Documents. 9.1. Notwithstanding any other section or provision of this agreement, the City shall have the absolute right at any time to terminate this agreement or any work to be performed pursuant to this agreement. 9.2. In the event of termination of this agreement by the City in the absence of default of the Consultant, the City shall pay the Consultant for the reasonable value of the services actually performed by the Consultant up to the date of such termination, less the aggregate of all sums previously paid to the Consultant for services performed after execution of this agreement and prior to its termination. 9.3. The Consultant hereby expressly waives any and all claims for damage or compensation arising under this agreement, except as set forth herein, in the event of such termination. 9.4. In the event of termination of this agreement, and upon demand of the City, the Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and all other materials and documents prepared by the Consultant in performance of this agreement, and all such documents and materials shall be the property of the City; provided however, that the Consultant may retain copies for their own use and the City shall provide a copy, at Applicant's cost, of all such documents to the Applicant. 9.5. Applicant shall have no right to terminate Consultant, and shall not exercise any control or direction over Consultant's work. 10. Administrative Claims Requirement and Procedures. No suit 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 of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions of which are incorporated by this reference as if set fully set forth herein. 11/28/2006 Three Party Agreement Page 8 10-14 11. Hold Harmless and Indemnification. 11.1. Consultant to Indemnify City and Applicant re Iniuries. 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 or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for (I) those claims, damages, liability, costs and expenses (including without limitation, attorney fees) arising from the sole negligence or sole willful misconduct of the City its officers, employees, or (ii) with respect to losses arising from Consultant's professional errors or omissions, those claims arising from the negligence or willful misconduct of City its officers, 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. Consultant's obligations under this Section shall hot be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 11.2. Applicant to Indemnify City re Compensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and from any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, employees, agents, or representatives of the City ("City Indemnitees"), in any way resulting from or arising out of the refusal to pay compensation as demanded by Consultant for the performance of services required by this Agreement. 12. Business Licenses. Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title.5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13.1. Consultant not authorized to Renresent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. 11/28/2006 Three Party Agreement Page 9 10-15 13.2. 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 for the parties in Exhibit A. 13.3. Entitlement to Subsequent Notices. No notice to or demand on the parties for notice ofan event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. 13.4. 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. 13.5. 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; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13.6. 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. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 11/28/2006 Three Party Agreement Page 10 10-16 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. 13.10. Headings. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13 .11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. 13.12. Remedies. The rights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. 13.13. No Additional Beneficiaries. Despite the fact that the required performance under this agreement may have an affect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this agreement. Notwithstanding the foregoing, this is a three party agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. 14. 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 11128/2006 Three Party Agreement Page 11 10-17 property of City. No such materials or properties produced in whole or in part under this Agre=ent 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 Agree~ent. (End of Page. Next Page is Signature Page.) 11/28/2006 Tillee Party Agreement Page 12 10-18 Signature Page To Three-Party Agreement Between City of Chula Vista, Terry A. Hayes Associates LLC, Consultant, and CV-42 Investments, LLC, Applicant For Consulting Work to be Rendered with regard to Applicants' Project NOW THEREFORE, the parties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereofby setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista By: Cheryl Cox, Mayor Attest: Susan Bigelow, City Clerk Approved as to Form: Ann Moore, City Attorney Dated: Consultant: Terry A. Hayes Asso BY~' ./ . "- Terry A. Haye.s ~ Principal Dated: //-:;{'7 ~ ""0 Applicant: CV -12 Inve~tments, LLC / f ~.' '7 ,'/ U 1/ . --., 1..-1/ / /fl~ ilill cntfem /" /. Manager By: Three Party Agreement Page 13 10-19 Exhibit A Reference Date of Agreement: Date of City Council Approval of Agreement Effective Date of Agreement: Date of City Council Approval of Agreement City: City ofChula Vista, 276 Fourth Avenue, Chula Vista, CA ~1910 Consultant: Terry A. Hayes Associates, LLC Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Other: A California Limited Liability Company Address: 8522 National Boulevard, Suite 102, Culver City, CA 90232 Applicant: CV -42 Investments, LLC Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership ( ) Corporation (X) Other: A California Limited Liability Company Address: 5075 Shoreham Place, Suite 240, San Diego, CA 92122 1. Property (Commonly known address or General Description): The Application covers approximately 61.92 acres located at the southwest quadrant of the SR-54 and 1-805 interchange and east of Second Avenue. The site is bordered on the north by the Sweetwater River channel and the SR-54/I-805 freeway interchange. The 1-805 right-of-way is located to the east ofthe site. The site is bordered on the south by residential development and on the west by Second A venue and residential development. 2. Project Description ("Project"): The proposed project will consist of redesignating the site from Open Space-Active Recreation to Medium Residential (6-11 dwelling units (du) per gross acre) and 11/28/2006 Three Party Agreement Page 14 10-20 Parks and Recreation. The residential component of the project will consist of between 450 and 600 dwelling units. A 15- to IS-acre community park and approximately 2-acre Community Purpose Facility (CPF) are proposed. 3. Entitlements applied for: General Plan Amendment, Planned Community Zone Reclassification (including General Development Plan, Sectional Planning Area (SPA) Plan, and District Zoning Regulations), Preliminary Grading Plan, Tentative Subdivision M'ap, and Design Review. 4. General Nature of Consulting Services ("Services--General"): Consultant shall prepare an Environmental hnpact Report (ElR) for the Riverwalk project in accordance with the City of Chula Vista Environmental Review Procedures; with the criteria, standards and procedures of the California Environmental Quality Act (CEQA) ofl970, as amended, (public Resources Code Sections 21000 et seq.) and the CEQA Guidelines (Public Resources Code Section 15000 et seq.); and with other applicable regulations, requirements and procedures of any other responsible public agency or any agency with jurisdiction by law. If there are conflicts between the City ofChula Vista's requirements and those of any other agency, the City ofChula Vista's shall prevail when the City is the Lead Agency. All work performed by Consultant shall be to the satisfaction of City's Environmental Review Coordinator. 5. Detailed Scope of Work ("Detailed Services"): Consultant shall prepare an ElR for the Riverwalk proj ecl. Consultant shall consult with all trustee and responsible agencies, agencies having jurisdiction by law and any other person or organization having control over or interest in the Development as necessary to ensure that the ElR is current and complete as to issues raised by such agencies. The Draft and Final ElR shall be prepared in such a manner that they will be meaningful and useful to decision-makers and to the public. Technical data is to be summarized in the body of the report and placed in an appendix. All documents shall be prepared in Microsoft Word. Consultant shall compile supporting documents into separate volume(s) to be referred to as the Appendices to the ElR. The Appendices shall include the Notice of Preparation (NOP), responses to the NOP and any technical reports and relevant technical information generated for the ElR. The Detailed Services to be provided are described below: Proiect Start-Un and Initiation The Consultant shall attend a start-up meeting with the City to establish communication protocols, confirm their understanding ofthe project, discuss key issues, review the schedule of deliverables, and collect plans and documents. Following the start-up meeting and a thorough review of project plans, the Consultant shall prepare a memorandum identifying outstanding information required to complete the project description for the ElR. Upon receipt of the requested information, the 11128/2006 Three Party Agreement Page 15 10-21 Consultant shall prepare a draft project description and submit it to the City for review. The draft project description shall include a text narrative supported by graphics. In addition, the consultant will develop baseline data for use in the environmental analysis. Tills will include collection and review of relevant planning documents and environmental studies and regulations, including but not limited to, the updated City's General Plan and associated EIR, and applicant-prepared support documents and technical studies. In asSembling baseline information for the EIR, the Consultant will maximize use of existing data. As part of this task, the Consultant will conduct general surveys of the site and vicinity to document existing conditions through notation, photography, and mapping. Initial Study and Notice of Preparation The Consultant shall prepare an Initial Study to establish the scope of the EIR. Because a decision has been made to prepare an EIR, and it is clear that a comprehensive set of issues will need to be addressed, the Initial Study will not involve in-depth analysis, but will concisely indicate areas of potential impact and the focus of the technical issue analyses that will be incorporated into the EIR. lfit is determined that certain issues do not warrant evaluation in the EIR, sufficient analysis will be provided to substantiate this determination. The Initial Study will be prepared using the City's current Environmental Checklist form with explanations and sources provided to support the determinations made on the checklist. The Consultant will prepare a Notice of Preparation (NOP) in accordance with the City format, including the project setting, background, description, list of discretionary actions and a discussion of the environmental effects to be addressed in the EIR. Typical attachments to the NOP include a regional and vicinity map, conceptual land use map if available and the list of agencies and organizations to receive the NOP. The latter will be prepared by the City. The Consultant will submit a Screencheck Initial Study along with the NOP to the City for review and will make revisions based on City comments. Following approval by the City, the Consultant will produce the Initial Study and the NOP for distribution by the City. Other CEOA Notices At the completion of the Draft EIR preparation stage, consultant will prepare a draft and final Notice of Completion (NOC) in the form presented in the most recently updated California Environmental Quality Act (CEQA) Guidelines. The final NOC will reflect City comments on the draft NOC and will be distributed with the Draft EIRs by the City. After the City certifies the EIR, the Consultant will prepare a draft and final Notice of Determination (NOD) in the form presented in the most recently updated CEQA Guidelines. The final NOD will reflect City comments on the draft NOD and will be posted with the County Clerk by the City. In addition, the Consultant will prepare a draft and final California Department of Fish and Game Certificate offee exemption. The final certificate will reflect City comments on the draft certificate and will be posted with the NOD by the City. 11/28/2006 Thee Party Agreement Page 16 10-22 Technical Studies Air Quality Technical Report The Consultant shall prepare an air quality analysis to analyze the potential for air quality impacts resulting from short-term construction as well as long-term emissions from implementation of the proposed project. The report will be included as a technical appendix to the EIR. The air quality analysis will also evaluate the potential for carbon monoxide (CO) "hotspots" to existing nearby existing and future sensitive receptors. The analysis will also identify traffic-generated emissions that may impact sensitive receptors in the absence of mitigation measures. The air quality analysis prepared by the Consultant shall: . Discuss pertinent air quality statutes and regulations at the local, regional, state and federal level; . Describe regional meteorology and local conditions as measured at the relevant SDAPCD Monitoring Station; . Defme Thresholds of Significance based on City and SDAPCD criteria and guidelines; . Evaluate construction emissions from building demolition, construction equipment, any earthmoving operations, construction worker and delivery trips and the use of building materials that may release criteria pollutants, such as volatile organic compounds (VOCs). All emissions will be calculated on a daily and quarterly basis. Consultant shall coordinate with the City or Applicant regarding development of construction modeling assumptions; . Assess mobile source emissions, including but not limited to quantification of emissions from project-generated traffic using regional travel characteristic data obtained from SANDAG and the SDAPCD and the EMF AC2002 emission factor model; . Assess regional stationary source emissions, including but not limited to quantification of emissions from electricity production and natural gas consumption; . Analyze traffic effects on localized carbon monoxide concentrations. Impacts will be determined based on the potential for proj ect emissions to exceed Federal and State ambient one-hour and eight-hour carbon monoxide (CO) concentrations. This evaluation will be conducted at up to 20 intersections, with and without the impact of project development, utilizing the CALINE 4 model; . Assess conformance with applicable air quality plans and policies, including but not limited to the RAQS, Transportation Control Measure (TCM), and City's CO2 Reduction Plan; . Develop mitigation measures where appropriate to address significant air quality impacts; and . Conduct a Health Risk Assessment (BRA) in accordance with the City's methodology to evaluate potential health risk impacts due to increased levels of emissions from stationary 11/28/2006 Three Party Agreement Page 17 10-23 and mobile sources and construction and operation emissions. The assessment will address sensitive uses within 500 feet of the adjacent I-80S and SR-54 freeways. The HRA will be included as part of the air quality technical report and will be summarized in the EIR. Noise Technical Study The Consultant shall conduct a noise study to evaluate the extent to which noise associated with short-term construction activities, traffic circulation, and other aspects of proj ect operations impact noise sensitive uses. The report will be included as a technical appendix to the EIR. The Consultant shall: . Discuss local plans, regulations, ordinances, and guidelines related to community noise and ground-borne vibration; . Survey and map noise-sensitive land uses near the project site and along the proposed construction haul route. In addition, Consultant shall identify existing noise sources present within the area that may affect proposed sensitive uses. Consultant shall conduct two 48- hour noise measurements to establish the ambient noise level within the project site and surrounding area; . Predict construction-period noise impacts by: (1) utilizing published construction equipment noise level data to characterize the noise source, and (2) applying industry standard distance attenuation and barrier insertion loss formulas to estimate construction noise levels. Construction-period noise will then be compared to the ambient noise level at each receptor location to determine significance; . Evaluate potential mobile-source and stationary-source noise impacts related to development of the project. Roadway noise impacts will be evaluated at up to 20 roadway segments using a roadway noise prediction model. Stationary-source noise impacts (e.g., noise from on-site mechanical equipment) will be evaluated using standard sound-distance attenuation and barrier insertion loss calculation formulas. This analysis will be conducted for up. to three scenarios (e.g., Existing, Future No-Project, and Future with Project); . Determine impacts based on ambient noise measurement data and whether proposed land uses are considered noise compatible. This will include an assessment of potential noise issues associated with areas of vertically and horizontally mixed residential and commercial use proposed within the SPA; and . Develop appropriate mitigation measures where significant impacts are identified. 11/2812006 Three Party Agreement Page 18 10-24 Draft EIR Preparation The Consultant shall prepare the fIrst screencheck Draft EIR for review by the City of Chula Vista. The EIR will be written in compliance with the criteria, standards and procedures of the CEQA Statute and Guidelines, as well as the Environmental Review Procedures of the City of Chula Vista and the regulations, requirements and procedures of any other responsible public agency with jurisdiction by law. In general, the Draft EIR and associated technical studies shall assemble all available data, originate new studies and provide an assessment of the probable short- and long-term cumulative impacts of the project. In addition, the Draft EIR shall provide an evaluation of all feasible mitigation measures, which could be carried out to reduce or eliminate adverse impacts of the proposed proj ect. The Draft EIR, where appropriate and as directed by City staff, shall also analyze all feasible alternatives to the project as proposed. The Consultant shall prepare the EIR in the following format: Table of Contents. This section provides a list of the EIR contents, including a list of tables and exhibits. Executive Summary. This section provides an overview of the proposed project, and the key conclusions set forth in the EIR regarding environmental impacts and mitigation measures. It will summarize the background and need for the proj ect, required discretionary actions, any known areas of controversy, and the objectives and basic characteristics of the project. The Executive Summary will identify and briefly discuss the environmental impacts associated with implementation of the project (whether benefIcial or adverse, significant or less than significant), and will contain a summary analysis of alternatives to the project. The Executive Summary will also include a table identifying all of the issues evaluated, their impacts, corresponding mitigation measures, and the level of impact significance after mitigation. Introduction. This section describes the purpose, scope and legislative authority of the EIR, the intent of CEQA and other pertinent environmental rules and regulations, and the environmental review process. The section will also include the structure, required contents and relationship of the EIR to other potential responsible or trustee agencies. The EIR's relationship to previously prepared documents will be described. Environmental Setting. This section will provide an overview of the local and regional environmental setting for the project, including a description of physical conditions and natural resources in the project vicinity and from a regional perspective. This section will identify applicable plans and policies related to the project and defIne the related projects and/or growth factor assumptions used as the basis for the cumulative impact analyses. 11/28/2006 Three Party Agreement Page 19 10-25 Proiect Description. The scope of work for this section of the EIR will include the following: . Location and Boundaries: This subsection shall provide a description of the size, boundaries, and location of the project at the local and regional level. Supporting graphics will be provided. . Statement of Objectives: This subsection shall define the objectives and underlying purpose of the project. It is assumed that these objectives will be developed jointly between the applicant and the City and will most likely reflect planning, environmental, and economic goals. The Statement of Project Objectives, in conjunction with an identification of the Project's significant impacts, will provide the basis for selecting a reasonable range of project alternatives to be evaluated within the EIR. . Project Characteristics: This subsection shall provide an overview of the project and describe its specific attributes. Project characteristics will be described based on a draft SPA Plan, Tentative Lotting and Grading Plan, Planned Community District Regulations, and other relevant descriptive information provided by the applicant. This section will also state the time frame for proj ect construction and phasing, required discretionary actions and approvals, agencies expected to use the EIR, and any federal, state or local environmental review and consultation requirements related to the CEQA process. Environmental Impact Analvsis. For each environmental issue to be analyzed in the EIR, this section will provide an analysis based on the following structure: . Existing Environmental Setting, Thresholds of Significance, . . Impacts, Level of Significance Prior to Mitigation, Mitigation Measures Level of Significance after Mitigation. . . . The assessment of environmental impacts will be consistent with CEQA and the CEQA Guidelines (Section 15126). The following are the environmental issues that are anticipated to be addressed in the EIR: Land Use, Planning and Zoning: The land use analysis would include discussion of potential impacts to existing adjacent offsite land uses and land use intensities, as well as land use plans and policies. Therefore, the analysis will contain a comparative analysis of both "plan-to-ground," or 11/28/2006 Three Party Agreement Page 20 10-26 --I physical impacts that the proj ect would have on existing uses, as well as "plan-to-plan" impacts to make sure that all potential environmental effects related to land use and planning are considered. Section 15125 (d) of the CEQA Guidelines requires that a discussion of inconsistencies between the proposed project and applicable general plans and regional plans be provided (the "plan-to-plan" analysis). The consistency analysis for the proposed project with applicable plans, policies and regulations would be provided in the EIR. The plans, policies and~egulations that are applicable to the proposed project that would be discussed in the Land Use and Planning section, include but may not be limited to: . City ofChula Vista General Plan . City of Chula Vista Growth Management Ordinance . Zoning Ordinance . Proposed Urban Core Specific Plan . Redevelopment Agency's Five-Year Implementation Plan This section will also acknowledge the proximity of the site to the City of National City and County of San Diego jurisdictions, and discuss land use compatibility issues related to these jurisdictions. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. Landform Alteration and Aesthetics: This section will include a detailed evaluation oflandform, community character, and views of the site from adjacent areas. Information that will be used to evaluate visual impacts of the proj ect, include but may not be limited to: the existing and proposed site elevation, mass and scale of the proposed project and architectural design, photosimulations prepared by the Consultant, data from the site plan, landscape elements, other available information from the project applicant and other major physical elements that will have high visual prominence, including signage. Consultant will conduct field investigations and analyze the project's visibility, view corridors, scenic resources, light/glare conditions, shadow conditions, and likelihood of project elements contrasting with existing visual quality and community character. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. Noise: This section of the EIR shall summarize the results of the City-approved Noise Technical Report prepared by the Consultant, as described above. The final Noise Technical Report will be included as an appendix to the EIR. Air Quality: This section of the EIR shall summarize the results of the City-approved Air Quality Technical Report prepared by the Consultant, as described above. The final Air Quality Technical Report will be included as an appendix to the EIR Transportation, Circulation and Access: The Consultant will review the traffic study provided by the City and incorporate the findings ofthe technical traffic report into the traffic section of the EIR. 11/28/2006 Three Party Agreement Page 21 10-27 This section will identify potential construction and operational traffic impacts resulting from the proposed proj ect and recommend mitigations measures as necessary to minimize significant impacts. The traffic study will be appended to the EIR. Hydrology/Drainage/Water Quality: The Consultant will review the drainage and water quality report provided by the City and summarize its findings in the EIR. Using this report, the EIR section will present an assessment of the potential for the proposed project to impact local hydrology and on- and off-site water quality during construction and operation of the proposed project. Relevant information from the project's Storm Water Pollution Prevention Plan will be included to address urban runoff and water quality issues. The Consultant will also include the project's relationship with the San Diego Region's Standard Urban Storm Water Mitigation Plan (SUSMP) and the City's Jurisdictional Urban Run-off Master Plan (JURMP). Appropriate mitigation measures, including best management practices for the construction and post construction condition, will be identified, as necessary, to reduce project related impacts. Geology and Soils: The Consultant will review the geotechnical report provided by the City and summarize its findings in the EIR. City documents (e.g., City ofChula Vista General Plan), as well as the most current information available from the California Geological Survey (CGS), will also be reviewed. Using the information from the geotechnical report and other sources, the EIR section will identify all geotechnical constraints and hazards within and adjacent to the project site, including, active faults, Alquist-Priolo Fault Hazard Zones, liquefaction, subsidence, slope stability, IOO-year flood plains, etc. Impacts will be assessed based on City established thresholds and feasible mitigation measures will be included for significant and potentially significant impacts. Public Services and Utilities: Consultant will contact potentially affected agencies to identify and obtain information for an analysis of the existing services, the project's impacts to the services (including the proposed change in land use), and recommended mitigation measures. Consultant will contact agencies associated with the areas of sewer and water service, police service, fire protection, emergency medical services, libraries, parks, schools, solid waste disposal, gas and electric, and telephone and cable. The discussion will focus on the required alteration of existing facilities, expansion of new facilities, and the increased demand on services based on City approved standards and measures. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. " Hazardous Materials: The Consultant review the Phase I Environmental Site Assessment (ESA) provided by the City and will summarize the recommendations and conclusions regarding the . historical uses of the project site, potential hazardous substances found on the project site, and the potential impacts that these substances would have on the proposed project. Other City documents, such as the General Plan, may be reviewed in the preparation of this evaluation. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. 11/28/2006 Three Party Agreement Page 22 10-28 Cultural and Paleontological Resources. The Consultant will review the cultural and paleontological resources reports provided by the City and will evaluate the potential for the proposed project to impact identified cultural and/or historic resources. An evaluation will also be provided discussing the potential for paleontological resources to be uncovered during grading of the site or other construction activities. Evaluation will be based on the underlying geology of the area and communications with San Diego Natural History Museum staff. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. Population and Housing. The Consultant will compare the forecasted increases in population, housing, and employment stemming from the proposed project to regional estimates prepared by SANDAG to determine ifprojections are consistent. The potential ofthe proposed project to induce substantial population growth, impact the local housing stock, displace existing residents, and impact local employment opportunities, will be thoroughly evaluated in this EIR section. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. Mineral Resources. The Consultant will conduct an analysis of the potential for locally or regionally significant mineral resources to occur on-site and the potential project-related impacts to such resources. City documents, such as the General Plan, will be reviewed in the preparation of this section of the EIR. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. Agricultural Resources. This section of the EIR will address the potential for loss of Prime or Unique Farmland, or Farmland of Statewide Importance with implementation of the proposed proj ect. Impacts to important agricultural lands and the conversion of agricultural land to non- agricultural use will be thoroughly assessed. The analysis will identify significant impacts, if any, and provide mitigation measures as appropriate to minimize significant impacts. Threshold Analysis: Based on the analyses presented in the public services and facilities section of the EIR, the Consultant shall review and evaluate the proposed project's compliance with the City's Growth Management Ordinance (Chapter 19.09 of the Municipal Code) that contains Quality of Life Threshold Standards related to the following issues: drainage, traffic, fiscal, police, schools, libraries, water, air quality, sewage, fire/emergency services, parks, recreation and open space. This section of the EIR shall summarize the project's consistency with the established thresholds standards and determine if the requirements have been satisfied. Other CEQA Mandated EIR Sections In accordance with Article 9 of the State CEQA Guidelines, the EIR will contain a discussion of the irreversible environmental changes that will result from the proposed project, unavoidable significant impacts and those effects found not to be significant. The EIR will contain a list of all references used and persons and agencies contacted in preparation ofthe EIR. In addition, the EIR will list all 11/28/2006 Three Party Agreement Page 23 10-29 persons involved in the preparation of the document and their title and role. Detailed scopes of analysis for cumulative and growth inducing impacts and alternatives are provided below: Cumulative Impacts: This section will be based on a list and description of closely related past, present and reasonably foreseeable future projects within the project vicinity that would have the ability to contribute to cumulative effects in any of the environmental issue areas discussed in the ErR. This section will evaluate whether individual project imp'acts create any newly identified cumulatively significant impacts when viewed in combination with these other projects. The discussion will include an assessment of the project's ability to compound or increase adverse environmental impacts when added to cumulative projects. The cumulative analysis will evaluate compliance with adopted "Threshold Standards" and applicable policies and programs. Growth Inducement: The growth inducement discussion will assess the potential of the proposed proj ect to induce economic or population growth and the construction of additional housing, either directly or indirectly, in the surrounding environment. Growth management and compliance with the Chula Vista Threshold Standards, including the phasing and delivery of community services and facilities to serve new development in a timely and logical fashion will be discussed. The project will also be discussed in relationship to its compliance with regional and local growth management policies and growth forecast assumptions. In addition, the potential for use oflarge amounts of fuel or energy will be discussed. Alternatives: The ErR will address a reasonable range of project alternatives that could feasibly attain the basic objectives of the proposed project. Determination of specific alternatives will be made in coordination with City staff. The focus of the Alternatives discussion will be those project alternatives that reduce or avoid any identified significant environmental impacts, in accordance with the requirements of CEQA. The Alternatives discussion will include a comparative analysis ofthe various project alternatives in relation to the proposed project. The analysis will include a quantitative analysis of effects, where appropriate. The Alternatives will include the "No Project Alternative" (existing General Plan designation) and a "No Development" Alternative. Additional alternatives may include a reduced density and/or alternative use altemative(s). An Environmentally Superior Alternative, other than the No Project Alternative, will be identified. Appendices The Appendices shall include an Initial Study, a copy of the Notice of Preparation (NOP), Responses to the NOP, and any technical studies prepared for the project that are not a part of the EIR. Miti\!ation Monitorin\! and Renortin\! Pro\!ram (MMRP) For all mitigation measures identified in the ErR, the Consultant will prepare a monitoring program in conformance with the City's format that will allow the City to verify that the required mitigation measures have been implemented. The program will explicitly identify what entity is responsible for implementing the measure, the entity responsible for monitoring enforcement of the measure and the 11/28/2006 Three Party Agreement Page 24 10-30 phase of the project (pre-construction, construction, or post-construction) when the measure would be implemented. Draft and final versions of the MMRP shall be prepared. Draft EIR Processinl! and Document Revisions The Consultant shall prepare three (3) screencheck draft EIRs prior to preparation of the public review version of the Draft ElR. The second, third and public re,,}iew copies ofthe Draft EIR will incorporate comments received on prior versions of the reports. Final EIR Prenaration and Content Upon completion of agency and public review, the Consultant will prepare written responses to all letters of comment and public testimony received during public review. All comments received in response to the EIR will be discussed with the City staff, and an approach to the responses will be subj ect to City approval prior to preparation of the draft responses. Draft responses to comments will be submitted to City staff for review. The Consultant will then revise responses in accordance with City direction and will prepare the document for final distribution. As needed, the traffic consultant for the proj ect will assist in the preparation of responses to public comments on the traffic study. The Final EIR will include the EIR text with necessary revisions requested by City staff or as a result of the public review process, list of agencies and individuals that commented on the Draft EIR, letters of comment and responses, the Findings and Statement of Overriding Considerations (if applicable), appendices, and the MMRP. Findinl!s and Statement of Overridinl! Considerations The draft Candidate CEQA Findings will be submitted at the beginning of the public review period of the Draft EIR to allow sufficient time to review for completeness and adequacy. The Findings will include all measures which would be implemented to mitigate potentially significant impacts; a statement, as appropriate, that the proj ect mitigation may be the responsibility of another agency; and an evaluation of project alternatives and why each was found to be infeasible. A major portion of the Findings will be compiled using information contained in the EIR. The Statement of Overriding Considerations (SOC) will be prepared, if applicable, and will present the social, economic or other reasons why the proj ect should be approved even though significant environmental impacts may result (i.e., why the project's benefits override the environmental issues). Similar to the Candidate CEQA Findings, the SOC (if applicable) will be presented in draft form to the City at the beginning of the public review period. The Findings and SOC will be revised as City determines to be necessary, and printed to accompany the Final EIR. The Findings and SOC shall follow the format and style as generally accepted by the City of Chula Vista. 11/28/2006 Three Party Agreement Page 25 10-31 Meetinl!:s and Hearinl!:s The Consultant's work efforts will involve on-going project management to include regular coordination with City staff and project tearn members. The Consultant's project manager will meet weekly with City staffto discuss the EIR progress and issues as they arise. At the request of the City, the Consultant shall assist with the preparation of meeting agendas and minutes. At a minimum, attendance at the following will be required: . . One (I) Proj ect initiation meeting with the City, Applicant( s), and others as determined by City staff; . One (I) public workshop, if requested by the City; . Weeldy meetings with City staff to discuss EIR progress and issues as they arise; . One Scoping Meeting; . One (1) Resource Conservation Commission meeting; . One (1) CYRC public hearing to close public review of the DEIR; . One (1) Planning Commission hearing on the final EIR; · One (1) Chula Vista Redevelopment Corporation (CYRe) meeting on the [mal ElR; and · One (I) City CouncillRedevelopment Agency hearing on the [mal ElR and project. Additional meetings beyond those listed would be provided under a separate scope of work on a time and materials basis, with prior authorization from the Environmental Projects Manager. Proiect Manal!:ement This task includes consistent and thorough coordination with the Environmental Project Manager. Specific tasks include monitoring the project status, schedule, and budget and informing the Environmental Project Manager of any changes to the approved scope of work or schedule on a timely basis. Monthly status reports as well as preparation oftearn meeting notes are required. This task also includes overall quality assurance and quality control of written documents. Deliverable Products Notices · One (I) copy each draft and [mal Notice of Preparation, hard copy and electronic · One (I) copy each draft and final Notice of Completion, hard copy and electronic · One (1) copy each each draft and final Notice of Determination and California Department ofFish and Garne (CDFG) fee certification letter, hard copy and electronic Project Description Ten (10) copies of a Preliminary Draft Project Description, stapled. One (1) reproducible copy of the Final Project Description. 11/28/2006 Three Party Agreement Page 26 10-32 Technical Reports Five (5) copies each of the draft and final air quality technical reports. Five (5) copies each of the draft and final noise technical reports. Screen check EIRs . Twenty-five (25) total copies of the First Screencheck Draft ElR and Technical Appendices. Ten (10) copies in three-ring binders and the remainder bound. The First Screencheck Draft ElR shall be prepared in Microsoft Word and shall be printed at 1.5 spacing; . Twenty-five (25) total copies of the Second Screencheck Draft ElR, MMRP and Technical Appendices (only those that changed from first screencheck). Ten (10) copies in three-ring binders and the remainder bound. The Second Screencheck Draft ElR shall be prepared in Microsoft Word and shall be printed at 1.5 spacing; . Five (5) copies of the Third Screencheck Draft ElR, MMRP and Technical Appendices (only those that changed from second screencheck), bound. The Third Screencheck Draft ElR shall be printed double-sided, at single spacing; Public Review Draft EIR . Thirty-five (35) total copies of the Draft ElR and Technical Appendices (Final), including ten (10) copies of the documents provided in three-ring binders and the remainder bound; . Sixty (60) total copies of the Executive Summary bound or stapled with sixty (60) CD-ROMs containing the Draft ElR, Technical Appendices, including all graphics and tables, in pdf format attached to the Executive Summary in a CD "sleeve"; . One (1) reproducible copy of the [mal MMRP; Final EIR, Findings and Statement of Overriding Considerations (if applicable) . Five (5) copies and one reproducible copy each of the draft and final Findings and Statement of Overriding Considerations; . Five (5) copies and one reproducible copy each of the draft and final responses to comments and amended ElR sections; . Ten (10) screencheck copies ofthe Final ElR, MMRP and Appendices (only those that changed due to comments received during public review), and Candidate CEQA Findings and Statement 11/28/2006 Three Party Agreement Page 27 10-33 of Overriding Considerations (if applicable), including five (5) copies provided in three-ring binders and the remainder bound; . Thirty-five (35) copies of the Final EIR, MMRP and Appendices (only those that changed as a result of comments on the screencheck Final EIR), and Candidate CEQA Findings and Statement of Overriding Considerations (if applicable), including five (5) copies of the Final EIR provided in three-ring binders and the remainder bound; : . One (1) reproducible master copy ofthe Final EIR, MMRP, Appendices, Findings and Statement of Overriding Considerations (if applicable) suitable for reproduction on City equipment and not three-hole punched; and . One computer disk copy or CD ROM version of the Final EIR, MMRP, Appendices, Findings and Statement of Overriding Considerations (if applicable) that can be read by Microsoft Word. 6. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliver abies: 11/28/2006 . Provide Draft Project Description - December 14,2006. Screencheck Initial Study and Notice of Preparation - January 5, 2007. Final Initial Study and Notice of Preparation: Two (2) days after receipt of City comments on Screencheck Initial Study and Notice of Preparation. First Draft Air QualitylHRA and Noise Technical Reports - March 7, 2007 (assumes City provides Consultant with second screencheck draft traffic report on or by February 14, 2007). Second Draft Air QualitylHRA and Noise Technical Reports - Two (2) weeks after receipt of City comments on First Draft Air Quality/BRA and Noise Technical Reports. Final Draft Air QualitylHRA and Noise Technical Reports - One (I) week after receipt of City comments on Second Draft Air QualitylHRA and Noise Technical Reports. First Screencheck Draft EIR and Technical Appendices - May 2, 2007 (assumes City approves all technical reports on or by April 18, 2007). . . . . . . Three Party Agreement Page 28 10-34 o Second Screencheck Draft EIR,:MMRP and Technical Appendices - Two (2) weeks after receipt of City comments on First Screencheck Draft EIR. o Third Screencheck Draft EIR, :MMRP and Technical Appendices - Two (2) weeks after receipt of City comments on Second Screencheck Draft EIR. o Public Review Draft EIR, :MMRP and Technical Appendices - Five (5) days after receipt of City comments on Third Screencheck Draft EIR. o First Draft Findings and Statement of Overriding Considerations, if applicable - Two (2) weeks after start of public review of the Draft EIR and Technical Appendices. o Second Draft Findings and Statement of Overriding Considerations - One (1) week after receipt of City comments on First Draft Findings and Statement of Overriding Considerations. o First Draft Responses to Comments received during public review including hearing testimony - Two (2) weeks after end of public review of the Draft EIR and Technical Appendices. o Screencheck Final EIR including a list of persons, organizations, and public agencies commenting on the DEIR, responses to comments, MMRP, corrections and additions to the DEIR, Findings, Statement of Overriding Considerations - Two (2) weeks after receipt of City comments on First Draft Responses to Comments. o Final EIR including a list of persons, organizations, and public agencies commenting on the DEIR, responses to comments, :MMRP, corrections and additions to the DEIR, Findings, Statement of Overriding Considerations- One and one half weeks after receipt of City comments on Screencheck Final EIR and associated documents. Dates for Completion of all Consultant Services: Date of City Council fmal action on environmental documents, or completion of all tasks to the satisfaction of the City's Environmental Review Coordinator, whichever is later. 7. Documents to be provided by City to Consultant: (X) site plans (X) grading plans (X) architectural elevations (X) project description from applicant's application (X) other: Sectional Planning Area (SPA) Plan, first drafts of the biological resources study and Water Supply Assessment; second drafts of the traffic study, cultural/paleontological resources studies, geotechnical study, phase 1 Environmental Site Assessment, drainage study, water quality management plan, sewer study, public facilities financing plan (PFFP); City's standard Initial Study Checklist form, NOP format, Health Risk Assessment methodology, :MMRP format, and Findings and Statement of Overriding Considerations format. 11/28/2006 Three Party Agreement Page 29 10-35 8. Contract Administrators. City: Bob McSeveney, Principal Management Assistant Public Services Building 276 Fourth Avenue Chula Vista, CA 92010 Tel:(619)585-5712 Applicant: CV 42 Investments, LLC Attn: William Ostrem 5075 Shoreham Place, Suite 240 San Diego, CA 92122 Tel:(619) 890-3526 Consultant: Terry A. Hayes Associates. LLC 8522 National Boulevard, Suite 102 Culver City, Ca 90232 Tel (310) 839-4200 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. ( ) Category No. 1. ( ) Category No. 2. ( ) Category No. 3. ( ) Category No.4. ( ) Category No.5. ( ) Category No. 6. 11/28/2006 Not an FPPC Filer. Investments and sources of income. Interests in real property. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Investments in business entities and sources of income ofthe 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. Investments in business entities and sources of income ofthe type which, within the past two years, have contracted with Three Party Agreement Page 30 10-36 the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No. 7. Business positions. 10. Insurance Requirements: .. (X) Commercial General Liability: $1,000,000. (X) Automobile Liability: $1,000,000. (X ) Worker's Compensation: Statutory (X) Employer's Liability: $1,000,000. (X) Errors and Omissions Liability: $2,000,000. II. Permitted Subconsultants: None 11/28/2006 Three Party Agreement Page 31 10-37 Exhibit B Additional Recitals WHEREAS, the Applicant has submitted an application for the processing ofthe Riverwalk ~~ : WHEREAS, pursuant the California Environmental Quality Act (CEQA) the Environmental Review Coordinator has determined that the proposed project requires the preparation of an EIR; WHEREAS, on August 16, 2006, the Environmental Review Coordinator distributed a Request for Proposals (RFP) to the Association of Environmental Professionals and to all consulting firms listed on the City's list of Qualified Environmental Consultants, inviting prospective Consultants to submit proposals for the proposed Riverwalk EIR; WHEREAS, four proposals were submitted to the City in response to the RFP; WHEREAS, a Selection Committee was established pursuant to Section 2.56.110 of the Municipal Code to review the qualifications and conduct interviews of the most qualified firms based on established evaluation criteria; WHEREAS, the Selection Committee interviewed all four firms and recommended Terry A. Hayes Associates, LLC. to perform the required services for the City; WHEREAS, the Environmental Review Coordinator has negotiated the details of this agreement in accordance with the Environmental Review Procedures; WHEREAS, the Applicant has deposited or will deposit funds for the consulting services necessary for the preparation of the environmental documents; WHEREAS, Terry A. Hayes Associates, LLC. is uniquely qualified to serve as the Environmental Consultant for this contract based on their familiarity with the urban nature of the site, their redevelopment experience, technical expertise in the areas of noise, air quality and Health Risk Assessments and their demonstrated familiarity with project features and requirements; WHEREAS, Terry A. Hayes Associates, LLC. represents that they are experienced and staffed in a manner such that they can prepare and deliver the required services to the City of Chula Vista within the necessary timeframes; and WHEREAS, the proposed contract with Terry A. Hayes Associates, LLC. to provide consultant services would be in an amount not to exceed $146,092 with an additional $36,523 for additional services should they be necessary. 11/28/2006 Three Party Agreement Page 32 10-38 Exhibit C Compensation Schedule and Deposit: Terms and Conditions. ( ) Single Fixed Fee Arrangement. For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: (X) Single Fixed Fee Amount: $ 182,615 (including contingency fee if authorized in the sole discretion of the City's Environmental Review Coordinator as provided below) Milestone or Event Percent and Amount Of Fixed Fee 1. Signing of this agreement by all parties and upon the request of the Consultant. $14,609 (10%) 2. Submittal of First Screencheck Environmental Document* $58,437 (40%) 3. Submittal of Second Screencheck Environmental Document** $14,609 (10%) 4. Commencement of Public Review $21,914 (15%) 5. Completion of Final Environmental Document $21,914 (15%) $14,609 (10%) 6. Completion of All Remaining Tasks as outlined in Exhibit "A" to this Agreement Subtotal $146.092.00 7. 25% Contingency Fee*** (for task(s) as determined at the sole discretion of the City's Environmental Review Coordinator) $36,523.00 Total Fixed Fee Amount $182,615.00 11/28/2006 Three Party Agreement Page 33 10-39 . For purposes of payment, the first screencheck shall completely address and analyze all issues identified in the detailed scope-of-work (described in Exhibit "A") to the satisfaction of the Environmental Review Coordinator. Payment shall not be made until the City's Environmental Review Coordinator determines that a complete screencheck document has been submitted. .. For purposes of payment the second screencheck shall completely address all comments identified in the first screencheck to the satisfaction of the Environmental Rev.iew Coordinator. Payment shall not be made until the City's Environmental Review Coordinator 'determines that a complete second screencheck document has been submitted. ... Pursuant to Section 3.2.2 of this Agreement, the Environmental Review Coordinator in their sole discretion independently and or upon request from the Consultant, may from time to time, negotiate additional services to be performed by the Consultant under this Agreement in order to cover unforeseen issues that may be identified during the preparation of the environmental document ("Additional Services"). The cost of Additional Services in connection with the environmental document shall not exceed 25% of the total contract amount ($36,523.00). ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase 1. $ 2. $ 3. $ 4. $ 11/28/2006 Three Party Agreement Page 34 10-40 ( ) Time and Materials For performance of the General and Detailed Services of Consultant as herein required, Applicant shall pay Consultant for the productive hours oftime and material spent by Consultant in the performance of said Services, at the rates or amounts set forth hereinbelow according to the following terms and conditions: () NoHo-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 General and Detailed Services herein required of Consultant for including all Materials and other "reimburseables" ("Maximum Compensation"). The City will also receive a standard administrative fee amounting to 1 0% of the contract. ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to (plus the 25% contingency if authorized in the sole discretion of the City's Environmental Review Coordinator as provided above) ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City Council. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Categorv of Emplovee Name Hourly Rate Proj ect Principal Senior Associate (Project Manager) Senior Env. Scientist Planner Assistant Planner Graphics Administrative Assistant Terry Hayes* Madonna Marcelo* Sam Silverman* $151 $107 $78 $57 $53 $87 $40 *Other individuals from the Consultant firm may be substituted in place of the names listed solely at the discretion of the City's Environmental Review Coordinator. () Consultant's hourly rates may increase by 6% for services rendered after 11/28/2006 Three Party Agreement Page 35 10-41 Materials Separately Paid For by Applicant ( ) Materials Reports Copies ( ) Travel ( ) Printing ( ) Postage ( ) Deli very ( ) Long Distance Telephone Charges ( ) Other Actual Identifiable Direct Costs ( ) Other Cost or Rate None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. None. Included in Cost. Deposit (X) Deposit Amount: $73,046. The remaining contract balance of$73,046 shall be deposited at the City's request but no later than 10 days following the City's approval of the First Screencheck Draft EIR. Applicant further agrees to deposit within 10 days if City requests to do so, a sum (estimated to be up to $36,523 (contingency fee) for additional services if such services are required by the City's Environmental Review Coordinator. (X) Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consultant, if this paragraph is "checked", upon City's receipt of billing by Consultant, and determination by City in good faith that Consultant's billing is proper, a judgment for which Applicant agrees to hold City harmless and waive any claim against City, City shall pay Consultant's billing from the amount of the Deposit. If Applicant shall protest the propriety of a billing to City in advance of payment, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith determination of propriety. Applicant agrees to maintain a minimum balance of immediately replenished upon the request of the City. in subj ect account that shall be ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. Upon determination by City made in good faith that Consultant is entitled to compensation which shall remain unpaid by Applicant 30 days after billing, City may, at its option, use the Deposit to pay said billing. 11/28/2006 wee Party Agreement Page 36 10-42 (X) Bill Processing: A. Consultant's Billing to be submitted for the following period oftime: (X) Monthly ( ) Quarterly (X) Other: In accordance with milestones identified. herein. 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 (X) Other: Upon completion of the milestones identified herein. C. City's Account Number: To be assigned after agreement is processed. 11/28/2006 Three Party Agreement Page 37 10-43