HomeMy WebLinkAboutRDA Packet 2001/07/10
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(HULA VISTA
TUESDAY, JULY 10, 2001 COUNCIL CHAMBERS
6:00 P.M. PUBLIC SERVICES BUILDING
(immediately following the City Council meeting)
JOINT MEETING OF THE
REDEVELOPMENT AGENCY I CITY COUNCIL AND
PUBLIC FINANCING AUTHORITY (SPECIAL MEETING)
OF THE CITY OF CHULA VISTA
CALL TO ORDER
ROLL CALL
Agency /Council/ Authority Members Davis, Padilla, Rindone, Salas; Chair/Mayor
Horton
CONSENT CALENDAR
The staff recommendations regarding the following item!s) listed under the Consent Calendar will be enacted
by the Agency/Council/Authority by one motion without discussion unless an Agency/Council/Authority
member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to
speak on one of these items, please fill out a "Request to Speak form" available in the lobby and submit it to
the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the
Consent Calendar will be discussed after Action items. Items pulled by the public will be the first items of
business.
1, APPROVAL OF MINUTES - Staff recommends the Redevelopment Agency
approve the minutes of June 5, 2001, June 12, 2001 and June 19, 2001;
and the Public Financing Authority approve the minutes of August 15, 2000.
ORAL COMMUNICATIONS
This is an opportunity for the general public to address the Redevelopment Agency/City Council/Housing
Authority on any subject matter within the Agency/Council/Authority's jurisdiction that is not an item on this
agenda. IState law, however, generally prohibits the Redevelopment Agency/City Council/Housing Authority
from taking action on any issues not included on the posted agenda.) If you wish to address the
Agency/Council/Authority on such a subject, please complete the "Request to Speak Under Oral
Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or
City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record
purposes and follow up action.
PUBLIC HEARING
The following item(s) have been advertised and/or posted as public hearings as required by law. If you wish to
speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the
Redevelopment Agency or the City Clerk prior to the meeting.
2. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA DETERMINING AND DECLARING
THE PUBLIC NECESSITY TO ACQUIRE CERTAIN REAL PROPERTY LOCATED
AT 362-398 "F" STREET, CHULA VISTA, CALIFORNIA FOR THE
CONSTRUCTION OF THE CITY'S POLICE HEADQUARTERS AND
AUTHORIZING THE COMMENCEMENT OF CONDEMNATION PROCEEDINGS
BY OUTSIDE COUNSEL TO ACQUIRE SAID PROPERTYJhe existing Police
Headquarters is significantly undersized and does not meet the needs of the
Police Department today. It was determined that the existing facility could
not be retrofitted/expanded to meet the current or future needs of the
Department, and that it was necessary to locate the l"1ew Headquarters
facility off-site. After a number of sites were reviewed, it was
recommended to locate the Headquarters at the commercial property located
at 362-398 F Street, immediately to the southeast of the Civic Center.
Eminent Domain proceedings may be necessary in order to timely clear all
tenant claims to allow for construction of the Police Headquarters
[Assistant City Manager Morris] 4/5ths Vote Required
STAFF RECOMMENDATION: Council/Agency adopt the resolution.
3. a. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY ADOPTING MITIGATED NEGATIVE DECLARATION IS-O1-017 AND
ITS ASSOCIATED MITIGATION MEASURES AND MONITORING PROGRAM
FOR THE CIVIC CENTER MASTER PLAN AND THE POLICE HEADQUARTERS
MASTER PLAN-The City of Chula Vista has experienced significant growth
and is projected to reach a build-out population of over 275,000 within the
next two decades. The existing Civic Center Complex, which includes the
Police Headquarters, can no longer accommodate the staff required to
service the current population nor that of the future. On 811 /00, Council
approved an agreement with Highland Partnership, Inc. to prepare a Civic
Center Complex Master Plan and a Police Department Master Plan.
[Assistant City Manager Morris]
b. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING THE CIVIC CENTER
MASTER PLAN FOR THE EXPANSION OF THE EXISTING CIVIC CENTER IN
TOWN CENTRE II REDEVELOPMENT AREA
c. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING THE POLICE
HEADQUARTERS MASTER PLAN FOR THE CONSTRUCTION OF THE NEW
Redevelopment Agency, July 10, 2001 Page 2
POLICE HEADQUARTERS AT THE COMMERCIAL CENTER SITE WITHIN THE
TOWN CENTRE I REDEVELOPMENT PROJECT AREA
STAFF RECOMMENDATION: Council/Agency adopt the resolutions.
4. a. PUBLIC HEARING PURSUANT TO SECTION 33445 AND 33679 OF THE
COMMUNITY REDEVELOPMENT LAW RESPECTING USE OF
REDEVELOPMENT AGENCY FUNDS FOR THE ACQUISITION OF LAND FOR
THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED
FACILITY-Highland Partnership, Inc. was hired by the City to prepare the
Police Facility Master Plan including the program and conceptual design for
the Police Headquarters. Highland conducted an extensive site analysis,
which culminated in the recommendation to locate the Police Facility at the
commercial center site located at 362-398 F Street across from the City Main
Library. It is believed that the commercial site best met the overall standards
of law enforcement and goals for provision of consolidated government.
[Assistant City Manager Morris]
b. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA 1) RATIFYING THE EXECUTION OF
A PURCHASE AND SALE AGREEMENT BETWEEN CITY OF CHULA VISTA
REDEVELOPMENT AGENCY AND CHULA VISTA CENTER, A CALIFORNIA
CORPORATION, FOR ACQUISITION OF PROPERTY LOCATED AT 362-398
"F" STREET REQUIRED TO CONSTRUCT THE CITY OF CHULA VISTA
POLICE HEADQUARTERS FACILITY; AND 2) AMENDING THE BUDGET FOR
THE REDEVELOPMENT AGENCY BY APPROPRIATING $4,786,210 FROM
THE PROCEEDS OF THE 2000 TAX ALLOCATION BOND ISSUE IN THE
MERGED PROJECT AREA FOR THE REPAYMENT OF OUTSTANDING
ADVANCES TO THE BAYFRONT-TOWN CENTRE I PROJECT AREA, AND
APPROPRIATING THE SAME AMOUNT IN THE BAYFRONT-TOWN CENTRE I
PROJECT AREA TO THE POLICE FACILITY CAPITAL PROJECT FOR
PROPERTY ACQUISITION COSTS 4/5THS VOTE
c. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA: 1) WAIVING THE COMPETITIVE
CONSULTANT SELECTION PROCESS; 2) AUTHORIZING A CONSULTANT
CONTRACT WITH PACIFIC RELOCATION CONSULTANTS FOR $60,000 TO
PROVIDE RELOCATION SERVICES FOR THE NEW DOWNTOWN POLICE
FACILITY; AND 3) AMENDING THE BUDGET FOR THE REDEVELOPMENT
AGENCY BY APPROPRIATING $500,000 FROM THE PROCEEDS OF THE
2000 TAX ALLOCATION BOND ISSUE IN THE MERGED PROJECT AREA
FOR THE REPAYMENT OF OUTSTANDING ADVANCES TO THE BAYFRONT-
TOWN CENTRE I PROJECT AREA, AND APPROPRIATING THE SAME
AMOUNT IN THE BAYFRONT-TOWN CENTRE I PROJECT AREA TO THE
Redevelopment Agency, July 10, 2001 Page 3
POLICE FACILITY CAPITAL PROJECT FOR THE CONSULTANT CONTRACT
AND FOR TENANT RELOCATION COSTS 4/5THS VOTE
STAFF RECOMMENDATION: Council/Agency adopt the resolutions.
ACTION ITEMS
The items listed in this section of the ogendo are expected to elicit substantial discussions and deliberations by the
Council, Public finoncing Authority, staft or members of the general public The items will be considered individually by
the Council and Public Financing Authority and staff recommendations may in certain cases be presented in the
alternative. Those who wish to speak, pleose fill out 0 Request to Speak form available in the lobby and submit it to the
City Clerk prior to the meeting.
5. a. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE REPORT OF THE ASSESSMENT ENGINEER AND
CONFIRMING REASSESSMENTS WITHIN REASSESSMENT DISTRICT NO.
2001-1-0n 2/27/01, the City Council approved a resolution making
preliminary determinations and declaring their intention to issue bonds to
refund the outstanding improvement bonds issued for several assessment
districts ordering a report thereon, and approving contracts with bond
counsel and underwriting firms. The Council is now being asked to approve
the reassessment reports, confirm the reassessments, authorize the sale of
refunding bonds to the Authority, and approve other related documents and
actions. The Authority is being asked to authorize the sale of bonds for the
purpose of purchasing the refunding bonds of the City, and to approve other
related documents and actions. All of these actions are recommended with
the sole purpose of achieving savings in annual assessments for property
owners within the subject districts. [Deputy City Manager Powell]
b. RESOLUTION OF CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING THE REPORT OF THE ASSESSMENT ENGINEER AND
CONFIRMING REASSESSMENTS WITHIN REASSESSMENT DISTRICT NO.
2001-2
c. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED
OBLIGATION REFUNDING BONDS FOR REASSESSMENT DISTRICT NO.
2001-1, APPROVING AS TO FORM THE BOND INDENTURE AND ACQUIRED
OBLIGATIONS PURCHASE AGREEMENT, AND AUTHORIZING OTHER
ACTIONS IN CONNECTION THEREWITH
d. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF LIMITED
OBLIGATION REFUNDING BONDS FOR REASSESSMENT DISTRICT NO.
2001-2, APPROVING AS TO FORM THE BOND INDENTURE AND ACQUIRED
OBLIGATIONS PURCHASE AGREEMENT, AND AUTHORIZING OTHER
ACTIONS IN CONNECTION THEREWITH
Redevelopment Agency, July 10, 2001 Page 4
e. RESOLUTION OF THE BOARD OF DIRECTORS OF THE CHULA VISTA
PUBLIC FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF
REFUNDING REVENUE BONDS, APPROVING AS TO FORM THE INDENTURE
OF TRUST, BOND PURCHASE CONTRACT, ACQUISITION OBLIGATIONS
PURCHASE AGREEMENT, PRELIMINARY OFFICIAL STATEMENT, AND
CONTINUING DISCLOSURE AGREEMENT, AND AUTHORIZING OTHER
ACTIONS IN CONNECTION THEREWITH
STAFF RECOMMENDATION:
1 ) Council adopt resolutions (a) through (d)
2) Public Financing Authority adopt resolution (e)
6. OTHER BUSINESS
7. DIRECTOR'S REPORT(S)
8. CHAIR/MAYOR REPORT(S)
9. AGENCY/COUNCIL COMMENTS
ADJOURNMENT
The meeting will adjourn to a Closed Session and thence to the regular meeting of
the Redevelopment Agency on July 17, 2001 at 6:00 p.m., immediately following
the City Council meeting in the City Council Chambers.
CLOSED SESSION
Unless Agency Counsel, the Executive Director, City Councilor the Redevelopment Agency states otherwise at
this time, the Agency/Council will discuss and deliberate on the following itemls) of business which are
permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised
should be discussed in closed session to best protect the interests of the City. The Agency/Council is required
by law to return to open session, issue any reports of final action taken in closed session, and the votes taken.
However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at
this point in order to save costs so that the Agency/Council's return from closed session, reports of final action
taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded
in the minutes which will be available in the Office of the Secretary to the Redevelopment Agency and the City
Clerk's Office.
10. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to
Government Code Section 54956.8
a. Property: Assessor Parcel Nos. 568-270-03; 568-270-11
(approximately 2.85 acres located at the southeast
corner of Fourth Avenue and F Street)
Negotiating Parties: City Council/Redevelopment Agency (Sid Morris/
Chris Salomone) and Chula Vista Center (Robert
Caplan)
Under Negotiations: Price and terms for acquisition
Redevelopment Agency, July 10, 2001 Page 5
b. Property: Assessor Parcel No. 568-270-10 (315 Fourth
Avenue)
Negotiating Parties: City Council (Sid Morris/ Chris Salomone)
Under Negotiations: Lease terms
11. INITIATION OF LlTIGA TION--Pursuant to Government Code Section
54956.9(c)
Possible challenge to California Energy Commission (CEC) approval of
RAMCO Peaker Plant, Unit No.2
*********
COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT
The City of Chula Vista, in complying with the Americans with Disabilities Act IADA!, request individuals who
require special accommodates to access, attend, and/or participate in a City meeting, activity, or service
request such accommodation at least 48 hours in advance for meetings and five days for scheduled services
and activities. Please contact the Secretary to the Redevelopment Agency for specific information at 161 g)
691-5047 or Telecommunications Devices for the Deaf ITDDI at (61 g) 585-5647. California Relay Service is
also available for the hearing impaired.
Redevelopment Agency, July 10, 2001 Page 6
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A
REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
June 5, 2001 4:00 p.m.
An Adjourned Regular Meeting of the City Council and a Regular Meeting of the
Redevelopment Agency of the City of Chula Vista were called to order at 4:58 p.m. in the
Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista,
California.
ROLL CALL:
PRESENT: Agency/Councilmembers: Padilla, Rindone, Salas and
Chair/Mayor Horton
ABSENT: Agency/Councilmembers: Davis (excused)
ALSO PRESENT: Executive Director/City Manager Rowlands, Senior Assistant City
Attorney Moore, City Clerk Bigelow
CONSENT CALENDAR
1. ORDINANCE NO. 2836, ORDINANCE OF THE REDEVELOPMENT AGENCY OF
THE CITY OF CHULA VISTA PROHIBITING THE ESTABLISHMENT OR
EXPANSION OF OUTDOOR STORAGE USES; AND TOLLING THE OPERATION
OF EXISTING OUTDOOR STORAGE USES WITHIN THE REDEVELOPMENT
AREAS (SECOND READING AND ADOPTION)
The City's redevelopment project areas were fonned in order to eliminate various
conditions of blight. Currently, the land use policies that apply to the redevelopment
project areas are inadequate to address the blighting influences of outdoor storage uses.
The establishment of new outdoor storage uses, or the expansion of existing uses, in the
redevelopment project areas could result in the further reduction of land that is available
for redevelopment and hinder the implementation of the various redevelopment plans and
the achievement of their goals and objectives. The ordinance had its first reading on May
29, 2001. (Community Development Director)
Staff recommendation: Council place the ordinance on second reading for adoption.
ACTION: Agency/ Authority/Councilmember Rindone moved to approve staffs
recommendation and offered the Consent Calendar, heading read, text waived.
The motion carried 4-0.
ORAL COMMUNICATIONS
There were none.
/-!
PUBLIC HEARING
2. PUBLIC HEARING TO CONSIDER A REQUEST FOR A SPECIAL LAND USE
PERMIT TO ESTABLISH A MIXED USE (OFFICE AND SINGLE-FAMILY
RESIDENCE) AT 217 LANDIS AVENUE
The applicant requested a special land use pennit to allow a mixed use [office and a
single-family residence] at 217 Landis Avenue, located within the Town Centre I
Redevelopment Project Area. The proposed mixed use is pennitted subject to the
issuance of a special land use pennit within the Central Commercial area of the Town
Centre Redevelopment Plan and requires consideration by the Town Centre Project Area
Committee and the Redevelopment Agency. The proposal is exempt ITom environmental
review pursuant to the California Environmental Quality Act, Section 15303 of the
California Code of Regulations. (Community Development Director)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Horton opened the public hearing. There being no members of the public wishing
to speak, Mayor Horton closed the hearing.
ACTION: Agency/Authority/Councilmember Rindone offered Agency Resolution No. 1731,
heading read, text waived:
AGENCY RESOLUTION NO. 1731, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
GRANTING A SPECIAL LAND USE PERMIT, SUP #TCI-OI-02, TO RAY
JOHNSTON TO ESTABLISH A MIXED USE-OFFICE AND SINGLE-
FAMILY RESIDENCE-AT 217 LANDIS AVENUE
The motion carried 4-0.
ACTION ITEMS
3. CONSIDERATION OF APPLICATION TO THE CALIFORNIA ENERGY
COMMISSION FROM RAMCO, INC. REQUESTING APPROVAL OF AN
EXPANSION OF ITS EXISTING ELECTRICAL POWER GENERATING FACILITY
AT 3497 MAIN STREET-
On September 26, 2000, the Council/Agency approved a Special Use Pennit and an
Owner Participation Agreement allowing for the development of a maximum 49 MW
peak load electrical power generating facility at 3497 Main Street, located in the
Southwest Redevelopment Area. RAMCO, Inc., the new owner of the power plant,
proposes to expand the existing facility with a second phase, including the expansion of
an additional 62 MW natural gas-fired combustion turbine generator. The applicant is
processing these plans through the California Energy Commission (CEC) pursuant to
Governor Davis' 21-day emergency plant siting procedure. Under this process, the
proposed expansion is exempt ITom CEQA review, and the CEC has full authority over
the land use review process. (Community Development Director)
Page 2 Counci1/RDAlHousing Authority Minutes /-d-.. 06/05/2001
ACTION ITEMS (Continued)
Deputy Community Development Director Haynes summarized the proposed power plant
expansion project, explaining the project's benefits, disadvantages, and recommended
conditions.
Special Operations Manager Meacham submitted a memorandum fÌ'om the San Diego Air
Pollution Control District listing the recent and proposed permits for power facilities in the
region. He explained that 10 of the 27 sites were traditional power generating facilities. He also
remarked that the South Bay Power Plant has generated substantial discussion, and he believed
that the CEC was interested in generating power for California in the most effective, efficient,
and environmentally sound manner.
Chair/Mayor Horton stated that the City has done more than its fair share, and there is a need for
environmental justice and to protect the quality of life in Chula Vista and neighboring
communities. She stated that it was not the responsibility of the South Bay to provide all of the
energy resources for the State. The peaker plants are not a long-term solution to the energy
crisis, and a strong message should be sent to the decision makers that the facilities should not all
be constructed in the South County area.
Agency/Councilmember Salas opposed the proposed peaker plant expansion. She stated that the
City acted in a responsible manner last September when the first peaker plant was approved.
The Governor has since declared an energy crisis, thereby taking away local control in terms of
what can be built in the community. The City did its part earlier in an effort to be part of the
solution to the problem, but the City is now being treated unfairly. She believed that there was
more evidence of market manipulation than a supply problem, that the responsibility for the
power shortage should be borne by all of California, and that generated energy should be
channeled into a grid to service the entire state.
Steve Palma, 121 Orange Avenue, spoke against the expansion of the peaker plant, stating that
the problems associated with emissions and sound were unacceptable to residents of the area. He
urged the Council to keep the plant as it presently exists.
William Claycomb, 409 Palm Avenue, Suite 100, Imperial Beach, representing Save Our Bay
Inc., submitted a letter to Council objecting to the 62 megawatt peaker power plant.
Holly Duncan, 3838 Mt. Blackburn Avenue, San Diego, stated that the power emitted fÌ'om the
plants serves not only California, but also the whole western grid, which incorporates II states.
She expressed concern regarding pollution, stating that the energy crisis will become a major
public health hazard, and there is a need to make certain that environmental standards are kept in
place. She urged the Council to consider owning its own means of power generation, so that the
community could be the decision makers for the type of generation to be used.
Pepper Coffey, 1164 Coview Way, San Diego, expressed concern that once power plants are
permitted and built, they could be run with diesel fuel in the event of a natural gas shortage. She
stated that the purpose of peaker plants was to facilitate short-term emergencies, but the
applicants are asking for 50-year permits. She added that the Environmental Protection Agency
has assured South Bay citizens that they will be the beneficiaries of the power because it would
be dissipated in the community before it ever reaches the western grid, but she expressed
reservations as to the validity of the statement.
Page 3 Council/RDA/Housing Authority Minutes 1- 3 06/05/2001
ACTION ITEMS (Continued)
Agency/Authority/Councilmember Padilla stated that the issue is very complex, the solutions are
difficult, and he was disturbed that local community leaders have a limited ability to influence
the situation. He explained that as a society, we have failed to find ways to incentivize and
expand the market share of the energy production business and to diversify the industry with the
use of different, newer and cleaner technologies that do not rely on the same resources. He
asked Environmental Manager Meacham whether or not the City could expect more generation
plants on the Otay Rim and whether the City has exhausted all potential courses of action. Mr.
Meacham responded that the State's goal is to balance the location ofpeaker plants, and the City
has made every attempt to file under every application and pennit review in the South Bay, with
the realization that environmental impacts do not recognize jurisdictional boundaries. Assistant
City Attorney Googins stated that if the Council wishes to oppose the peaker plant and directs
staff to communicate the Council's comments to the CEC, those comments would be framed in
ways that would necessitate consideration by the CEC before making the findings required to
approve the pennit. Agency/Authority/Councilmember Padilla stated that the City needs to
obtain some sort of contractual requirement regarding future applications in case there is another
proliferation of applications that may impact the City or the region.
Agency/Authority/Councilmember Rindone stated that under the temporary 21-day rules and
regulations, the Council has lost its ability to provide guarantees and protections to the citizens,
and the destruction of environmental laws and rules that protect the citizens is unacceptable. He
stated that a second peaker plant would jeopardize the health of the citizens, and he encouraged
the community to communicate its concerns to state decision makers.
ACTION: Agency/Authority/Councilmember Rindone offered Resolution No. 2001-177,
heading read, text waived.
CITY COUNCIL RESOLUTION NO. 2001-177 AND REDEVELOPMENT
AGENCY RESOLUTION NO. 1732, RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF CHULA VISTA AND THE CHULA VISTA
REDEVELOPMENT AGENCY DIRECTING STAFF TO COMMUNICATE
THE CITY'S POS.ITION AND CONCERNS REGARDING THE
APPLICATION FROM RAMCO, INC. REQUESTING A 62 MW EXPANSION
OF THEIR ELECTRICAL POWER GENERATING STATION AT 3497 MAIN
STREET IN THE SOUTHWEST REDEVELOPMENT PROJECT AREA
The motion carried 4-0.
OTHER BUSINESS
4. DIRECTOR'S REPORTS
There were none.
5. CHAIRJMA YOR REPORTS
There were none.
6. AGENCY/COUNCIL COMMENTS
There were none.
CLOSED SESSION
Page 4 Council/RDA/Housing Authority Minutes (- c/ 06/05/2001
8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO
GOVERNMENT CODE SECTION 54956.8
Property: Assessor Parcel Nos. 568-270-03; 568-270-11
(approximately 2.85 acres located at the southeast
comer of Fourth Avenue and F Street)
Negotiating Parties: City Council/Redevelopment Agency (Sid Morris /
Chris Salomone) and Chula Vista Center (Robert
Caplan)
Under Negotiations: Price and tenus for acquisition
No reportable action was taken.
9. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A)
Agency vs. Rados Bros. [Case No. GIC734557-1]
This item was not discussed.
ADJOURNMENT
At 7:00 p.m., Chair/Mayor Horton adjourned the meeting to the Regular Meeting of the
Redevelopment Agency on June 12, 2001, at 6:00 p.m., immediately following the City Council
meeting.
Respectfully submitted,
~rJ.o-
Susan Bigelow, CMC/AAE, City Clerk
Page 5 Council/RDA/Housing Authority Minutes (-S- 06/05/2001
MINUTES OF ADJOURNED REGULAR MEETINGS
OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
June 12,2001 6:00 p.m.
Adjourned Regular Meetings of the City Council and Redevelopment Agency of the City of
Chu1a Vista were called to order at 7:25 p.m. in the Council Chambers, located in the Public
Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLLCALL
PRESENT: Agency/Counci1members: Davis, Rindone, Salas and Chair/Mayor
Horton
ABSENT: Agency/Counci1members: Padilla (excused)
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City
Attorney Kaheny, City Clerk Bigelow
ORAL COMMUNICATIONS
There were none.
OTHER BUSINESS
1. DIRECTOR'S REPORTS
There were none.
2. CHAIR/MA YOR REPORTS
There were none.
3. AGENCY/COUNCIL COMMENTS
There were none.
CLOSED SESSION
Chair/Mayor Horton announced that Closed Session had been cancelled, and the following items
were not discussed:
/ - G,
CLOSED SESSION (Continued)
4. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government
Code Section 54956.8
Property: Assessor Parcel Nos. 568-270-03; 568-270-11
(approximately 2.85 acres located at the southeast
comer of Fourth Avenue and F Street)
Negotiating Parties: City Council / Redevelopment Agency (Sid Morris /
Chris Salomone) and Chula Vista Center (Robert
Caplan)
Under Negotiations: Price and terms for acquisition
5. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(a)
Agency vs. Rados Bros. [Case No. GIC734557-1]
ADJOURNMENT
At 7:25 p.m., Chair/Mayor Horton adjourned the meeting to the Regular Meeting of the
Redevelopment Agency on June 19, 2001, at 4:00 p.m., immediately following the City Council
meeting.
Respectfully submitted,
~~'t~
Susan Bigelow, CMC/AAE, City Clerk
Page 2 Council/RDA Minutes 1- 7 06/12/2001
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL,
A SPECIAL MEETING OF THE HOUSING AUTHORITY,
AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA
June 19, 2001 4:00 P.M.
An Adjourned Regular Meeting of the City Council, a Special Meeting of the Housing Authority,
and a Regular Meeting of the Redevelopment Agency of the City of Chula Vista were called to
order at 4:57 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth
Avenue, Chula Vista, California.
ROLLCALL
PRESENT: Agency/Authority/Councilmembers Davis, Padilla, Rindone, Salas,
and Chair/Mayor Horton
ABSENT: Agency/ Authority/Councilmembers: None
ALSO PRESENT: Executive Director/City Manager Rowlands,
Agency/Authority/City Attorney Kaheny, City Clerk Bigelow
CONSENT CALENDAR
1. APPROVAL OF MINUTES
Staff recommendation: Redevelopment Agency/ City Council approve the minutes of the
regular meeting of the Redevelopment Agency and adjourned meeting of the City
Council for May 29, 2001; and that the Housing Authority approve the minutes of special
meetings on February 20, 2001, and May 29, 2001.
2. COUNCIL RESOLUTION NO. 2001-202, RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT
FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2001-02
Article XIIIB of the California Constitution, approved by the voters in 1979 and
commonly referred to as the Gann Initiative, requires each local government to establish
an appropriations limit by resolution each year at a regularly scheduled meeting or
noticed special meeting. The purpose of the limit is to restrict spending of certain types
of revenues to a level predicated on a base-year amount increased annually by an
inflation factor. (Deputy City Manager Powell)
Staff recommendation: Council adopt the resolution.
ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered
Consent Calendar Items #1 and #2, headings read, texts waived. The motion
carried 5-0.
1- 1
ORAL COMMUNICATIONS
There were none.
PUBLIC HEARINGS
3. CONSIDERATION AND ADOPTION OF THE OPERATING AND CAPITAL
IMPROVEMENT BUDGETS FOR THE CITY, AND THE OPERATING BUDGETS
FOR THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY FOR
FISCAL YEARS ENDING JUNE 30, 2002 AND 2003
The City Council has received and considered the City Manager's proposed operating and
capital improvement budgets for the City and the operating budgets for the
Redevelopment Agency and Housing Authority for the fiscal years ending June 30, 2002
and 2003. Two work sessions were held to consider and deliberate on the
recommendations contained in those initial documents. The budgets submitted for
adoption represent the City Manager's initial spending plan as amended in accordance
with tentative Council direction received during the budget work sessions. (Deputy City
Manager Powell; Director of Budget & Analysis)
Deputy City Manager Powell thanked the Council and City Manager Rowlands for their
direction and support with the adoption and implementation of the bi-annual budget process. He
also thanked City staff for their participation in the process.
Chair/Mayor Horton opened the public hearing. There being no members of the public wishing
to speak, she then closed the hearing.
Agency/Authority/Councilmember Padilla stated that the Council has set forward ambitious
capital improvement projects for the next two years, and he emphasized the need for Council to
understand the impacts of funding approvals on the ability to leverage financing for the projects
and sustain ongoing debt service.
ACTION: Chair/Mayor Horton offered Council Resolution No. 2001-203, Agency
Resolution No. 1734, and Housing Authority Resolution No. HA-19, headings
read, texts waived:
COUNCIL RESOLUTION NO. 2001-203, RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE OPERATING
AND CAPITAL IMPROVEMENT BUDGETS FOR THE CITY OF CHULA
VISTA FOR FISCAL YEAR 2002, APPROPRIATING FUNDS THEREFOR,
AND APPROVING IN CONCEPT THE PROPOSED BUDGETS FOR FISCAL
YEAR 2003
AGENCY RESOLUTION 1734 AND HOUSING AUTHORITY RESOLUTION
HA-19 ADOPTING THE OPERATING BUDGETS FOR THE
REDEVELOPMENT AGENCY AND HOUSING AUTHORITY FOR FISCAL
YEAR 2002, APPROPRIATING FUNDS THEREFOR, AND APPROVING IN
CONCEPT THE PROPOSED BUDGETS FOR FISCAL YEAR 2003
The motion carried 5-0.
Page 2 Council/RDA/Housing Authority Minutes 1- 9 06/19/01
ACTION ITEMS
4. CONSIDERATION OF A REQUEST FROM A V ALaN COMMUNITIES LLC FOR
ADDITIONAL FINANCIAL ASSISTANCE TO ASSIST WITH THE
DEVELOPMENT OF A MIXED USE PROJECT, INCLUDING 106 AFFORDABLE
HOUSING UNITS, KNOWN AS MAIN PLAZA -
On June 13, 2000, the Council/Agency approved a special use pennit, density bonus, and
conditionally approved financial assistance in the fonn of a loan not-to-exceed
$1,060,000 to Avalon Communities LLC for the development of a mixed use project
comprised of 106 affordable multi-family units and 15,000 square feet of retail
commercial space. The "Main Plaza" project is proposed to be located on the northeast
corner of Main Street and Broadway, within the Southwest Redevelopment Project Area
and the Montgomery Specific Plan area. In June 2000, the developer applied to the State
Tax Credit Allocation Committee for its nine percent low-income housing tax credit
program; however, due to a very competitive funding round, the project did not receive
the tax credit allocation. Since then, the development applied for multi-family revenue
bonds ITom the California Debt Limit Allocation Committee and, in May 2001, the
project received a bond allocation of approximately $6.5 million. It is anticipated that the
project will receive $3.4 million in tax credit equity ITom the accompanying four percent
tax credit program. The $1,060,000 in Agency financial assistance was to provide gap
financing required under the original financing proposal for nine percent tax credits.
With the change in the project's major financing sources to bonds and four percent tax
credits, a larger financing gap now exists. The developer has been actively seeking other
sources of funds to help in filling the larger financing gap for the project but has been
unsuccessful in its funding applications to date. (Community Development Director)
ACTION: Agency/ Authority/Councilmember Salas offered Agency Resolution No. 1735
and Council Resolution No. 2001-204, headings read, texts waived:
RESOLUTION NO. 1735 OF THE REDEVELOPMENT AGENCY AND
RESOLUTION NO. 2001-204 OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA CONDITIONALLY APPROVING ADDITIONAL
FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN
THE FORM OF A LOAN FROM HOME FUNDS AND THE LOW AND
MODERATE INCOME HOUSING FUND IN AN AMOUNT NOT-TO-
EXCEED $300,000 AND $450,000, RESPECTIVELY, TO AVALON
COMMUNITIES LLC FOR THE DEVELOPMENT OF A MIXED USE
PROJECT, INCLUDING 106 AFFORDABLE HOUSING UNITS
The motion carried 5-0.
OTHER BUSINESS
There were none.
5. DIRECTOR'S REPORTS
There were none.
Page 3 CounciVRDA/Housing Authority Minutes /- (0 06/19/01
OTHER BUSINESS (Continued)
6. CHAllUMAYORREPORTS
There were none.
7. AGENCY/COUNCIL COMMENTS
There were none.
CLOSED SESSION
8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR --Pursuant to Government
Code Section 54956.8
Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately
2.85 acres located at the southeast corner of Fourth Avenue and F
Street)
Negotiating Parties: City Council/Redevelopment Agency (Sid Morris/ Chris
Salomone) and Chula Vista Center (Robert Caplan)
Under Negotiations: Price and terms for acquisition
No reportable action was taken.
ADJOURNMENT
At 6:16 p.m., Deputy Mayor Davis adjourned the meeting to an adjourned regular meeting of the
Redevelopment Agency on July 10, 2001 at 6:00 p.m., immediately following the City Council
meetIng.
Respectfully submitted,
~ eu:. r3i? ~
Susan Bigelow, CMC/ AAE, City Clerk
Page 4 CounciVRDA/Housing Authority Minutes (- ( ( 06/19/01
MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL,
A REGULAR MEETING OF THE REDEVELOPMENT AGENCY, AND A SPECIAL
MEETING OF THE PUBLIC FINANCING AUTHORITY
OF THE CITY OF CHULA VISTA
AUGUST 15,2000 6:00 P.M.
An Adjourned Regular Meeting of the City Council, a Regular Meeting of the Redevelopment
Agency, and a Special Meeting of the Public Financing Authority of the City of Chula Vista
were called to order by Chair/Mayor Horton at 6:37 p.m. in the Council Chambers, located in the
Public Services Building, 276 Fourth Avenue, Chula Vista, California.
ROLL CALL
PRESENT: Agency/Authority/Council Members Davis, Moot, Padilla, Salas, and
Chair/Mayor Horton
ABSENT: Agency/Authority/Council Members: None
ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/Authority/
City Attorney Kaheny, City Clerk Bigelow
ORAL COMMUNICATIONS
Pauline Marie, 659 Ash Avenue, stated her concerns regarding the treatment of the J Street Marina
boat residents by the Harbor Patrol. Ms. Marie commented that upon reporting her boat was taking
on water, the Harbor Patrol had it towed away. She stated that the authorities should be more
tourist friendly and that the restrooms should be open at all times.
Christine Harris, daughter of Pauline Marie, said that they were told to leave the boat even though
it was sinking.
Chair/Mayor Horton indicated that the matter would be referred to the Port Authority, since the
Harbor Patrol does not fall under the City's jurisdiction.
CONSENT CALENDAR
(Items 1 and 2)
I. AGENCY RESOLUTION NO. 1687/ COUNCIL RESOLUTION NO. 2000-292, JOINT
RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING THE 2000 HOLIDAY LIGHTING
PROGRAM; AUTHORIZING WAIVING THE FORMAL BIDDING PROCESS AND
AWARDING A PURCHASE AGREEMENT TO DEKRALITE INDUSTRIES;
APPROPRIATING $20,848 FROM THE RESIDENTIAL CONSTRUCTION TAX
FUND (RCT) AND $18,076 FROM THE FINE ARTS FUND; AND DIRECTING
STAFF TO IMPLEMENT THE 2000 HOLIDAY LIGHTING PROGRAM (4/5THS
VOTE REQUIRED) -
Page 1 - Council/RDA Minutes /-I,J- 08/15/2000
CONSENT CALENDAR (Continued)
In 1998, the City initiated the holiday lighting program. A Request for Proposals was
issued. From the respondents, a selection committee and interview panel selected
DEKRALITE Industries due to its ability to meet the RFP's program goals, the
excitement and quality of its design, and the project cost. In 1999, due to the limited
market for this type of service, the company's past performance, and because the
company had supplied the original holiday lights, displays, and banners, the City waived
the formal bidding process and issued a purchase agreement to DEKRALITE.
(Community Development Director)
Staff recommendation: The Council and Agency adopt the resolution.
2. AGENCY RESOLUTION NO. 1688, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA APPROVING $73,000 TO PARTIALLY
COVER THE COST OF THE PUBLIC IMPROVEMENTS ASSOCIATED WITH AN
ELEVEN (II) UNIT TRANSITIONAL HOUSING PROJECT KNOWN AS TROLLEY
TRESTLE AND APPROPRIATING SAID AMOUNT FROM THE
REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING
SET-ASIDE FUND (4/STH,S VOTE REQUIRED) -
On June 22, 1999, the Agency approved a Disposition, Development and Housing
Cooperation Agreement with South Bay Community Services (SBCS) for the
development of an II-unit transitional housing development for foster care graduates.
The development is known as Trolley Trestle and is located at 746 Ada Street. The
project is currently under construction and is scheduled for completion by October I,
2000. The public improvement costs are higher than anticipated, and SBCS is requesting
Agency financial assistance. (Community Development Director)
Staff recommendation: The Agency adopt the resolution.
ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered the
Consent Calendar, headings read, texts waived. The motion carried 5-0.
PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES
3. JOINT REDEVELOPMENT AGENCY/CITY COUNCIL PUBLIC HEARING ON THE
PROPOSED AMENDMENTS TO THE REDEVELOPMENT PLANS FOR THE TOWN
CENTRE NO. II REDEVELOPMENT PROJECT, THE OTAY VALLEY ROAD
REDEVELOPMENT PROJECT AND THE SOUTHWEST REDEVELOPMENT
PROJECT-
The purpose of the proposed amendments to the Project Area Plans is to merge the Project
Areas. The amendments will not enlarge the Project Areas, nor will they affect any of the
properties in the proposed merged Project Area differently than if the Project Areas remained
separate. The proposed amendments do not change any of the existing tax sharing
agreements between the Agency and the taxing entities within the affected Projects Areas.
The main purpose of the proposed merger of the Project Areas is for efficiency of
administration and financing.
Page 2 - Council/RDA Minutes 1- (3 08/15/2000
PUBLIC HEARINGS (Continued)
Notice of the hearing was given in accordance with legal requirements, and the hearing was held
on the date and at the time specified in the notice.
Chair/Mayor Horton opened the public hearing and asked if anyone from the audience wished to
speak. There was no response, and she closed the hearing.
ACTION: Agency/Authority Member/Deputy Mayor Moot offered Ordinance Nos. 2817,
2818 and 2819 for first reading:
COUNCIL ORDINANCE NO. 2817, AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ADOPTING
THE FOURTH AMENDMENT TO THE TOWN CENTRE NO. II
REDEVELOPMENT PROJECT AREA PLAN AND THE MERGER OF THE
TOWN CENTRE NO. II REDEVELOPMENT PROJECT AND THE OTAY
VALLEY ROAD REDEVELOPMENT PROJECT, AND THE SOUTHWEST
REDEVELOPMENT PROJECT PURSUANT TO THE PROVISIONS OF THE
COMMUNITY REDEVELOPMENT LAW, HEALTH AND SAFETY CODE
SECTION 33485 et seq.
COUNCIL ORDINANCE NO. 2818, AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ADOPTING
THE SECOND AMENDMENT TO THE OTAY VALLEY ROAD
REDEVELOPMENT PROJECT AREA PLAN AND THE MERGER OF THE
aT A Y V ALLEY ROAD REDEVELOPMENT PROJECT, THE TOWN CENTRE
NO. II REDEVELOPMENT PROJECT, AND THE SOUTHWEST
REDEVELOPMENT PROJECT PURSUANT TO THE PROVISIONS OF THE
COMMUNITY REDEVELOPMENT LAW, HEALTH AND SAFETY CODE
SECTION 33485 et seq.
COUNCIL ORDINANCE NO. 2819, AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF CHULA VISTA APPROVING AND ADOPTING
THE THIRD AMENDMENT TO THE SOUTHWEST REDEVELOPMENT
PROJECT AREA PLAN AND THE MERGER OF THE SOUTHWEST
REDEVELOPMENT PROJECT, THE TOWN CENTRE NO. II
REDEVELOPMENT PROJECT AND THE OTAY VALLEY ROAD
REDEVELOPMENT PROJECT PURSUANT TO THE PROVISIONS OF THE
COMMUNITY REDEVELOPMENT LAW, HEALTH AND SAFETY CODE
SECTION 33485 et seq.
The motion carried 5-0.
ACTION ITEMS
4. a) AGENCY RESOLUTION NO. 1689, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA AMENDING VARIOUS AGENCY
PROJECT AREA FISCAL YEAR 2001 BUDGETS IN ACCORDANCE WITH THE
APPROVED AGENCY FINANCIAL PLAN AND AUTHORIZING THE VARIOUS
INTER-PROJECT AREA ADVANCES AND ADVANCE REPAYMENTS RELATED
THERETO, AND AUTHORIZING THE EXPENDITURE OF LOW AND MODERATE
INCOME HOUSING FUNDS OUTSIDE THE PROJECT AREA - (4/5111s VOTE
REQUIRED)
Page 3 - Council/RDA Minutes 1- ( cj 08/15/2000
ACTION ITEMS (Continued)
b) AGENCY RESOLUTION NO. 1690, RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING AND DIRECTING THE
ISSUANCE AND SALE OF NOT TO EXCEED $17,000,000 PRINCIPAL AMOUNT
2000 TAX ALLOCATION BONDS FOR THE MERGED REDEVELOPMENT
PROJECT AND APPROVING AN OFFICIAL NOTICE OF SALE, A CONTINUING
DISCLOSURE CERTIFICATE, A PRELIMINARY OFFICIAL STATEMENT AND
FINANCING DOCUMENTS, AUTHORIZING THE SALE OF THE BONDS ON
CERTAIN TERMS AND CONDITIONS, AUTHORIZING CERTAIN OTHER
OFFICAL ACTIONS AND PROVIDING FOR OTHER MATTERS PROPERLY
RELATING THERETO
c) COUNCIL RESOLUTION NO. 2000-293, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA APPROVING THE SALE OF REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA 2000 TAX ALLOCATION BONDS FOR
THE MERGED REDEVELOPMENT PROJECT
d) COUNCIL RESOLUTION NO. 2000-294, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA AUTHORIZING THE EXPENDITURE OF LOW AND
MODERATE INCOME HOUSING FUNDS OUTSIDE OF THE PROJECT AREA
Subject to the adoption of the Ordinances providing for the merged redevelopment project,
the above resolutions authorize the issuance and sale of a single series of tax allocation
bonds for the purpose of paying and repaying costs of redevelopment activity within the
merged redevelopment project. Proceeds of the bonds will be used to I) payor repay costs
of redevelopment activity of the merged redevelopment project; 2) establish a reserve
account for such bonds; and 3) pay a portion of the costs of issuing such bonds.
ACTION: Chair/Mayor Horton offered Agency Resolutions Nos. 1689 and 1690 and Council
Resolutions Nos. 2000-293 and 2000-294, headings read, texts waived. The motion
carried 5-0.
5. COUNCIL RESOLUTION 2000-295, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA WAIVING THE COMPETITIVE BIDDING PROCESS AS
IMPRACTICAL, AUTHORIZING THE MAYOR TO EXECUTE A SOLE SOURCE
CONTRACT WITH MOTOROLA FOR 800 MHZ INFRASTRUCTURE COSTS,
EQUIPMENT AND RELATED TRAINING, AND APPROPRIATING FUNDING
THEREFOR FROM VARIOUS SOURCES - (4/5THS VOTE REQUIRED)
On March 7, 2000, Council approved joining the Regional Communication System and
directed staff to return to Council with the associated infrastructure and equipment costs
required to convert to the system. The resolution approves a sole source agreement with
Motorola for equipment, installation and training to support radio operations for police, fire,
public works, parks, recreation, building and housing, and other related users, and an
appropriation of the necessary funding from various funding sources, including the proceeds
from a long-tenn debt issue. (Police Chief, Fire Chief, Deputy City Manager Powell, Director
of Management and Infonnation Services)
Agency/Authority/Council Member Salas asked if safeguards wolÙd be instituted to protect the
privacy of communications. Police Chief Emerson responded affinnatively.
ACTION: Agency/Authority Member/Deputy Mayor Moot offered Resolution No. 2000-295,
heading read, text waived. The motion carried 5-0.
Page 4 - CouncillRDA Minutes /- I':::, 08/15/2000
ACTION ITEMS (Continued)
6. a) COUNCIL RESOLUTION NO. 2000-296, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA, CALIFORNIA, AUTHORIZING THE EXECUTION AND
DELIVERY OF DOCUMENTS RELATING TO THE SALE AND DELIVERY OF NOT
TO EXCEED $27,000,000 CERTIFICATES OF PARTICIPATION, SERIES A OF 2000
(2000 FINANCING PROJECT), AND AUTHORIZING CERTAIN DOCUMENTS AND
DIRECTING CERTAIN ACTIONS IN CONNECTION THEREWITH - (4/5THS VOTE
REQUIRED)
b) COUNCIL RESOLUTION NO. 2000-297 APPROPRIATING $21,447,577 TO THE
CORPORATION YARD PROJECT BASED ON ANTICIPATED PROCEEDS FROM THE
ISSUANCE OF CERTIFICATES OF P ARTICIP A TION, APPROPRIATING AN
ADDITIONAL $2,503,636 TO THE CORPORATION YARD PROJECT FROM
UNANTICIPATED REVENUES IN THE TRANSIT FUND ($999,022) AND AVAILABLE
FUND BALANCES IN THE TRANSIT FUND ($1 MILLION) AND THE SEWER
SERVICE REVENUE FUND ($504,614), APPROPRIATING $454,438 FOR THE FIRST
SEMI-ANNUAL DEBT SERVICE PAYMENT FOR THE CORPORATION YARD
PROJECT FROM THE AVAILABLE BALANCE IN THE PUBLIC FACILITIES
DEVELOPMENT IMPACT FEE (PFDIF) FUND, AND $26,539 FOR THE FIRST SEMI-
ANNUAL DEBT SERVICE PAYMENT FOR THE 800 MHz PROJECT FROM THE
AVAILABLE BALANCE IN THE RESIDENTIAL CONSTRUCTION TAX FUND
c) PUBLIC FINANCING AUTHORITY RESOLUTION NO.3, RESOLUTION OF THE
BOARD OF DIRECTORS OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY
APPROVING A LEASE/PURCHASE AGREEMENT WITH THE CITY OF CHULA
VISTA AND CERTAIN OTHER DOCUMENTS IN CONNECTION WITH THE
EXECUTION AND DELIVERY OF THE CERTIFICATES OF PARTICIPATION, SERIES
A OF 2000 (2000 FINANCING PROJECT) IN A PRINCIPAL AMOUNT NOT TO
EXCEED $27,000,000 (4/5THSVOTE REQUIRED)
Council previously approved a capital project to acquire and construct a new Corporation
Yard and a second project to upgrade the existing 800 MHz communications system. Council
directed staff to return with recommended financing for these projects. Adoption of the
resolutions approves long-tenn borrowing by issuing Certificates of Participation in an
amount not to exceed $27 million for the portion of these projects that will not be funded with
existing resources. (Deputy City Manger Powell)
Agency/Authority/City Attorney Kaheny read a correction to Resolution No. 2000-296, adding the
following text to the end of Section 14:
. . . "In the event that it is detennined by the Deputy City Manager, or his designee, that there
are limitations or restrictions on the ability of the City to lease any portion of the site as
contemplated by the site lease and the lease, the Deputy City Manager, or his designee, may
designate other real property of the City to be leased pursuant to the site lease and the lease
with such designation to be conclusively evidenced by the execution and delivery of the site
lease and the lease by one or more of the authorized officers."
ACTION: Mayor Horton offered Council Resolutions Nos. 2000-296 and 2000-297 and
Public Financing Authority Resolution No.3, headings read, texts waived. The
motion carried 5-0.
Page 5 - Council/RDA Minutes I-I&' 08/15/2000
OTHER BUSINESS
7. DIRECTOR'S REPORTS
There were none.
8. CHAIR'S REPORTS
There were none.
9. AGENCY MEMBERS' COMMENTS
There were none.
At 6:57 p.m., Chair/Mayor Horton recessed the meeting to Closed Session.
CLOSED SESSION
10. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A)
Agency vs. Rados Bros. [Case No. GIC734557-1]
ACTION: Instructions were given to CoW1sel.
11. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION
PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a)
ACTION: Instructions were given to CoW1sel.
ADJOURNMENT
At 7:55 p.m., Chair/Mayor Horton adjourned the City CoW1cil and Public Financing Authority
meetings; and she adjourned the Redevelopment Agency to an Adjourned Regular Meeting to be
held on August 22, 2000, at 6:00 p.m., immediately following the City CoW1cil meeting.
Respectfully submitted,
Susan Bigelow, CMC/AAE, City Clerk
Page 6 - CouncillRDA Minutes /-/7 08/15/2000
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY AGENDA
STATEMENT
ITEM NO.: ,;L.--
MEETING DATE: 07-10-01
ITEM TITLE: JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
DETERMINING AND DECLARING THE PUBLIC NECESSITY TO
ACQUIRE CERTAIN REAL PROPERTY LOCATED AT 362-398 "F"
STREET, CHULA VISTA, CALIFORNIA FOR THE CONSTRUCTION OF
THE CITY'S POLICE HEADQUARTERS AND AUTHORIZING THE
COMMENCEMENT OF CONDEMNATION PROCEEDINGS BY
OUTSIDE COUNSEL TO ACQUIRE SAID PROPERTY
SUBMITTED BY:
REVIEWED BY: CITY MANAGE
4/5THS VOTE: YES ~ NO D
BACKGROUND
The existing Police Headquarters is significantly undersized and does not meet the needs of the
Police Department today. The current 50,000 square foot Police Headquarters building
completed in 1971 was built to serve a maximum population of 115,000. T oday's population is
approximately 180,000, projected to grow to 275,000 at build-out of the City. The
recommended facility size to serve this population is 140,566 square feet. A new Police
Department is needed to accommodate the existing and future requirements of the Police
Department.
The City investigated the feasibility of expanding and retrofitting the existing facility. It was
determined that the existing facility could not be retrofitted/expanded to meet the current or future
needs of the Department, and that it was necessary to locate the new Headquarters facility off-
site. After a number of sites were reviewed, it was recommended to locate the Headquarters at
the commercial property located at 362-398 F Street, located immediately to the southeast of the
Civic Center. This was the preferred site because it best met the overall goals of the Police
Headquarters Master Plan. The design and construction of the Police Facility will take over two
years to complete. The conceptual design phases have begun, however final design and
construction cannot begin until a site is purchased.
City staff has negotioted a purchase price that the property owner has accepted. Although there is
an agreement with the property owner, there are 13 tenants that require relocation, a number of
which have unresolved claims. If staff can not come to terms with the tenants regording
relocation costs, good will & tenant improvement values, eminent domain proceedings may be
.,;)-!
PAGE 2, ITEM NO.: ~-
MEETING DATE: 07/10/01
required in order to timely clear all tenant claims to make way for the construction of the Police
Facility.
The City's Community Development Department reviewed the proposed construction of the Police
Department pursuant to the provisions of the California Environmenfal Quality Act. In a separate
agenda item staff is recommending adoption of Mitigated Negative Declaration IS-Ol-017.
Residents and businesses within a 500 foot radius of the Civic Center, Library and Commercial
Center property were noticed via mail, in addition notice was published in the paper twice.
RECOMMENDATION
It is recommended that the City Council and the Redevelopment Agency approve the adoption of
a Resolution of Necessity to commence eminent domain proceedings with respect to property
located 362-398 "F" Street, Chula Vista
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
DISCUSSION
The City of Chula Vista Police department is now the nod largest in the state. The police
department handled 96,000 calls in 1999. There are 55 square miles to police, and
approximately 180,000 citizens to serve, projected to grow to 275,000 at the build-out of the
City. The existing Police facility is extremely undersized to meet the functional requirements of the
221 sworn staff, in addition to the civilian staff. Seventy officers have been added to the police
force since 1992, at which time the existing facility was already undersized to adequately meet
the needs of the police force.
The lack of space has required the conversion of an already short supply of storage space into
offices, often times with the officers sharing desk and office space. The lack of storage has been
exacerbated by state and federal requirements to keep evidence longer; increased security
requirements for narcotics and money storage. This has necessitated leasing of off-site storage
for equipment. In addition, two large cargo containers have been brought on-site to store
evidence, and the garage has been converted into bulk property storage.
The police department requires a full service police facility able to accommodate the growth of
the department through City build-out. In addition, ultimate parking needs must be fully
accommodoted on-site to alleviate parking congestion created by the current need for staff to
park on the surrounding neighborhood streets.
d-d---
PAGE 3, ITEM NO.: ~
MEETING DATE: 07/10/01
Site Selection
It was determined that the existing Police Facility would not be able to be retrofitted and
expanded to meet the Police Service Delivery requirements. An area and site selection process
were undertaken to determine the optimum site for locating the new facility. The west side of the
City was selected because it currently does and is projected to continue to have the highest
concentration of calls for service, and it is where the present Civic Center is located. The Police
Department felt is was important to remain in the vicinity of the Civic Center to support
community policing.
The site selection process was narrowed to four sites that were reviewed for locating the
Headquarters (see Exhibit 2). There were many considerations included in the site analysis, but
the following were considered primary:
. Parcel size able to accommodate the police program
. Location closest to highest concentration of calls for service
. Project Cost/Value
. Support downtown revitalization
. Provision of consolidated government services
The Project Team recommended Friendship Park as the preferred site for the Police
Headquarters. Selection of Friendship Park caused a great deal of concern in the community,
and based on this response, the City Council directed staff to revisit the sites under consideration.
The Commercial Property located at the southeast corner of 4th and F Street was identified as the
preferred site.
The commercial site was identified as the preferred site because it best met the overall site
requirements including:
. provision for consolidated government services,
. immediate proximity and urban planning connection to the Civic Center,
. identifiable, visible location that is convenient for the public,
. facilitation of interdepartmental interaction,
. promotion of community policing/outreach,
. accommodates all parking on-site and
. meeting standards for police operations.
In addition, the commercial site supports the Police Department's desire to remain in the area of
the Civic Center to support Community government and policing, and cooperative problem
solving.
The environmental document contemplated location of the new Police Headquarters at four sites,
including the commercial site. The potential impacts of locating at the commercial site, and the
02 -3
PAGE 4, ITEM NO.: J-
MEETING DATE: 07/10/01
associated mitigation measures are outlined in the Mitigated Negative Declaration IS-01-107 in
accompanying Agenda Ifem #2.
Commercial Property Acquisition
Pursuant to California Government Code Section 7267.2, the Agency made an offer to acquire
the properly at an appraised Fair Market Value of $4,786,130, including real estate and tenant
improvements. The properly owner has accepted the purchase offer, however there are 13
tenants that require relocation and a number of which have unresolved claims. Eminent Domain
proceedings may be required in order to timely clear all tenant claims to allow for the completion
of the Police Headquarters by mid-year 2003.
In order to complete the Police Headquarters in a timely manner, staff is requesting the Agency
consider the merits of a Resolution of Necessity (RON) (see Exhibit 1) to commence eminent
domain proceedings for acquisition/relocation of the privately owned "Commercial Site" property
at 362-398 "F" Street (southeast corner of 4th Avenue and "F" Street).
The Agency notified the property owner by certified mail on June 1, 2001 of the scheduled public
hearing to consider the RON. The property owner was subsequently notified via mail on June
14th and June 21 st due to the change of date of the hearing. All of the above referenced letters
to the property owner are included as Exhibit 3.
Required Findinqs for Resolution of Necessity for Acquisition of the property located
at 362-398 F Street
The Agency has the right to acquire the property through eminent domain, if the
following findings are made. Provided below are the principal findings to be
considered by the Agency:
(a) Finding as to Whether the Public Interest and Necessity Require the Project
The City of Chula Vista has experienced significant growth and is projected to reach a build-out
population of over 275,000 within the next two decades. In order to ensure that the level of
service the Police Force is providing continues and improves it is imperative to construct a new
Police Headquarters. Without this project, Police operations will be hampered due to inadequate
facilities from which to serve the needs of the public.
The public interest, convenience and necessity of the City/Agency, and its residents require the
acquisition of the property for the stated purpose for reasons including but not limited to:
1. it allows for the relocation and construction of the Police Headquarters in the immediate
vicinity;
2. provides a location that meets the Police Service requirements;
3. represents an identifiable, visible location that will be convenient to the public;
~-<I
PAGE 5, ITEM NO.: 3-
MEETING DATE: 07/10/01
4. provides immediate proximity to the Civic Center and will support the provision of
consolidated government services and cammunity policing, and promote inferaction of
City Departments.
(b) Finding As To Whether The Project Is Planned Or Located In The Manner That
Will Be The Most Compatible With The Greatest Public Good And The Least
Private Injury
The Project has been planned and located to be most compatible with the greatest public good
and the least private injury for reasons including:
1. Supparts the goals of the Town Centre I and II Redevelopment Area including
retention/expansion of public facilities and the Civic Center Complex;
2. The location is easily identifiable to the public and close to complimentary government
services such as Courts, Code enforcement/zoning, and Finance;
3. The property being acquired has a single, willing property owner;
4. The property acquisition allows for the parcel consolidation with an adjoining City-owned
property;
5. The Project is being designed to promote Community Policing and Outreach and will
have community facilities on-site;
6. The Project is being designed to accommodate all parking on-site, removing the need for
on-street parking in the adjoining neighborhood streets; and
7. Expanding government facilities that allow the City to provide service to the Chula Vista
Community.
(c) Finding As To Whether The Property Sought To Be Acquired Is Necessary For
The Project
It was determined that an off-site location was necessary to construct the new Police facility, as
the existing facility could not be expanded/retrofitted. The "commercial site" is required to
assemble a parcel for the construction of the Police Headquarters. The City owns a 0.78 acres
parcel immediately contiguous to the commercial site, commonly known as the EI Dorado
Building. The combined parcels result in a 3.6 acre site which is able to accommodate the
Police Development Program. In addition, the property is in the immediate vicinity of the
existing Civic Center Complex facilitating Community Policing and provision of consolidated
government services
(d) Finding As To Whether The Ofter For Purchase Required By Government Code
Section 7267.2 Has Been Made To The Owner Of Record
On March 3,2001, in accordance with Government Code Section 7267.2, the Agency made an
offer to the owners of the property (Chula Vista Center, a California Partnership) to ocquire the
property for an amount constituting just compensation, as determined by an appraisal.
All conditions and statutory requirements necessary to exercise the power of
eminent domain ("the right to take") to acquire the property described herein have
been complied with by the Redevelopment Agency of the City of Chula Vista.
r:::¿-~
PAGE 6, ITEM NO.: 1..-
MEETING DATE: 07/10/01
Based upon the above referenced findings and others contained in the attached
Resolution of Necessity (RON), staff recommends adoption of the RON to continue
with the project while the property acquisition is completed. Additional information
regarding the above findings is contained in the attached Resolution of Necessity.
CONCLUSION
The construction of the Police Headquarters is essential to maintain the current level of services to
the Chula Vista Community. An off-site location is necessary because the existing facility can not
be retrofitted and expanded to meet the current or future needs of the Department. The properly
locafed at 362-398 F Street has been determined to best meet the goals of the Police
Headquarters Master Plan. The timely completion of the project is imperative. The RON is
necessary to ensure that all properly rights are acquired in a timely manner. Staff recommends
approval of the RON.
FISCAL IMPACT
Approval of the Resolution will authorize the commencement of condemnation proceedings. The
properly acquisition cost agreed to by the City and the properly owner is $4,786,130. There are
severo I unresolved tenant claims. A relocation consultant is recommended to assist in tenant
relocation. The estimated cost to resolve tenant claims is $500,000, $60,000 of which will cover
consultant costs. Staff is requesting the appropriation of funds for the relocation services and
properly acquisition in the accompanying Agenda Items #3.
J:\COMMDEV\STAFF.REP\O7.10-01\PD #1 RON.doc
.,;2 - ro
CITY RESOLUTION NO.
AGENCY RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA DETERMINING AND
DECLARING THE PUBLIC NECESSITY TO ACQUIRE CERTAIN REAL
PROPERTY LOCATED AT 362-398 "F" STREET, CHULA VISTA,
CALIFORNIA FOR THE CONSTRUCTION OF THE CITY'S POLICE
HEADQUARTERS AND AUTHORIZING THE COMMENCEMENT OF
CONDEMNATION PROCEEDINGS BY OUTSIDE COUNSEL TO ACQUIRE
SAID PROPERTY
WHEREAS, in connection with municipal purposes, it appears
necessary for the City of Chula Vista and/or its Redevelopment
Agency to acquire certain real property located at 362-398 "F"
Street in Chula Vista, California, for the construction,
maintenance and operation of Police Headquarters and related
facilities for the proposed Chula Vista Police Station
Redevelopment Project, a public use ("Project"); and
WHEREAS, public interest, convenience and necessity require
the acquisition of fee simple interest in said real property more
particularly described and depicted in the attached Deed and
Exhibits thereto, on file in the City Clerk's Office, for said
Project; and
WHEREAS, said Project is planned and located in a manner that
will be most compatible with the greatest public good and the least
private injury; and
WHEREAS, said real property, and fee simple interest therein,
is necessary for the Project; and
WHEREAS, said real property is located entirely within the
territorial limits of the City of Chula Vista; and
WHEREAS, the City of Chula Vista and its Redevelopment Agency
are authorized to acquire said real property, and fee simple
interest therein, for such public use by eminent domain pursuant,
inter alia, to California Constitution Article 1, Section 19;
California Government Code Sections 37350.5 and 38010; California
Code of Civil Procedure Sections 1240.010, 1240.110, 1240.120, and
1255.410; and California Health and Safety Code Sections 33000, et.
seq.; and
WHEREAS, an offer to purchase the required interest in the
real property necessary for the Project has been made to the owner
of record pursuant to Section 7267.2 of the California Government
Code; and
02-7
WHEREAS, the persons designated in Section 1245.235 of the
Code of Civil Procedure, have been provided notice and a reasonable
opportunity to appear and be heard on the matters referred to in
Section 1240.030 of the Code of Civil Procedure.
NOW THEREFOR, BE IT RESOLVED that the City Council and the
Redevelopment Agency of the City of Chula Vista find and determine
and hereby declare, by a vote of not less than two-thirds of its
members, as follows:
1. That the above recitations are true and correct.
2. That the staff report and all evidence presented at the
public hearing on this matter have been reviewed and
considered.
3. That the public interest, convenience and necessity of
the City of Chula Vista, and the inhabitants thereof,
requlre the Project and improvements and appurtenances
thereto.
4. That the Project and improvements and appurtenances
thereto to be constructed upon, over, under, along, and
across the real property described and depicted in the
attached Deed and Exhibits thereto have been planned and
located in the manner which will be most compatible with
the greatest public good and the least private injury.
5. That the real property, and fee simple interest therein,
described and depicted in the Deed and Exhibits thereto,
is necessary for the proposed Project.
6. That the offer, as required by Section 7267.2 of the
California Government Code, has been made to the owner of
record of the property to be acquired, and the notice and
opportunity to appear before the City Council as required
by Section 1245.235 of the California Code of Civil
Procedure have been given.
7. That the City of Chula Vista and/or its Redevelopment
Agency, and all appropriate officers, representatives and
attorneys are hereby authorized and directed to acquire
the real property described and depicted in the attached
Deed and Exhibits thereto, in the name of and on behalf
of the City of Chula Vista and/or its Redevelopment
Agency, and to that end are hereby authorized and
directed to commence and prosecute an action, or actions,
in eminent domain for the purpose of acquiring said real
property and fee simple interest therein, and to obtain
an order for immediate possession in the manner provided
by law.
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Presented By: Approved as to form by:
~h~~
Chris Salomone
Community Development Director ty Attorney
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JOINT CITY COUNCIL/REDEVELOPMENT AGENCY AGENDA
STATEMENT
ITEM NO.: 3
MEETING DATE: 07-10-01
ITEM TITLE: a. JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY ADOPTING MITIGATED NEGATIVE
DECLARATION IS-01-017 AND ITS ASSOCIATED MITIGATION
MEASURES AND MONITORING PROGRAM FOR THE CIVIC
CENTER MASTER PLAN AND THE POLICE HEADQUARTERS
MASTER PLAN
b. JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING THE CIVIC CENTER MASTER PLAN FOR THE
EXPANSION OF THE EXISTING CIVIC CENTER IN TOWN
CENTRE II REDEVELOPMENT AREA
c. JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
APPROVING THE POLICE HEADQUARTERS MASTER PLAN FOR
THE CONSTRUCTION OF THE NEW POLICE HEADQUARTERS AT
THE COMMERCIAL CENTER SITE WITHIN THE TOWN CENTRE I
REDEVELOPMENT PROJECT AREA
SUBMITTED BY:
REVIEWED BY: CITY MANAGER \
4/STHS VOTE: YES D NO 0
BACKGROUND
The City of Chula Vista has experienced significant growth and is projected to reach a build-out
population of over 275,000 within the next two decades. The existing Civic Center Complex of
buildings, which includes the Police Headquarters, can no longer accommodate the staff required
to service the current population nor that of the future. The current 50,000 square foot Police
Headquarters Building, completed in 1971, was built to support a City population of
approximately 115,000. It is not only significantly undersized to serve today's population of
approximately 180,000, but also does not meet current building codes unique to Public Safety
use. In addition, modernization and retrofitting of all other Civic Center buildings is required to
meet current code requirements and to accommodate current and emerging technology. Parking
congestion and circulation issues for staff, visitors and the surrounding neighborhood are also
being experienced. The ability to plan for and accommodate the expansion of all City
..3-1
PAGE 2, ITEM NO.: 3
MEETING DATE: 07/10/01
administration departments is therefore necessary to ensure continuity of services for the citizens
of Chula Vista.
On August 1, 2000, the City Council took the first step towards this goal by approving an
agreement with Highland Partnership, Inc. to prepare a Civic Center Complex Master Plan and a
Police Department Master Plan. Highland Partnership worked with RNL Design to prepare the
Civic Center Master Plan (the complete Master Plan with supporting documents is attached as
Exhibit 5). Highland Partnership worked with McClaren, Wilson & Lawrie, Carrier Johnson, and
RNL to develop the programming and conceptual design of the new Police Headquarters Facility
(see Exhibit 10).
The total consolidated budget for completion of design and construction of the Civic Center and
Police Headquarters Masterplans is estimated to be $106.7 million. This total budget, to be
expended over the next six years with completion in 2007, includes property acquisition,
demolition, design, construction of buildings, parking and related on and offsite improvements,
furniture, fixtures and equipment, contingency, city staff time and a co-generation facility. The
Civic Center expansion is anticipated to cost $43.7 million and the Police Headquarters, $63
million.
The Civic Center Master Plan project is consistent with the goals of the Town Centre II
Redevelopment Area, which includes improving and expanding the Civic Center. The relocation
of the Police Headquarters also facilitates and supports this goal, since the existing Police building
can be used initially as a staging area to accommodate other departmental staff during the
remodeling and expansion. The former police building's life can then be further extended by
remodeling, to permanently accommodate one of the other City departments in need of
expansion space. Retaining the Police Headquarters functions in proximity to the Civic Center also
supports the redevelopment goals of Town Centre I by maintaining and enhancing support for
the downtown service providers including retail and restaurants.
The City's Community Development Department reviewed both the Civic Center and Police
Headquarters Masterplans pursuant to the provisions of the California Environmental Quality Act
(CEQA) and determined that although the proposed projects could have a significant impact on
the environment, there will not be a significant effect if the mitigation measures are implemented
and recommended adoption of a Mitigated Negative Declaration 15-01-017 (see Exhibit 1). It
should be noted that the environmental document did not contemplate the construction of a co-
generation facility or Phase IV of the Civic Center Master Plan which involves the relocation of
Fire Station #1 and the City's Fueling station to the Mercy property. This future phase will
require a separate CEQA review and consideration by the Council/Agency. Residents and
businesses within a 500 foot radius of the Civic Center, Library and Commercial Center property
were noticed via mail, in addition notice was published in the paper twice.
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PAGE 3, ITEM NO.: .3
MEETING DATE: 07/10/01
RECOMMENDATION
A. It is recommended that the City Council/Redevelopment Agency adopt the Mitigated Negative
Declaration and the associated Mitigation Measures and Monitoring Program.
B. It is recommended that the City Council/Redevelopment Agency approve the Civic Center
Master Plan for the Expansion of the Civic Center.
C. It is recommended that the City Council/Redevelopment Agency approve the Police
Headquarters Master Plan for Construction of the new Police Headquarters.
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
CIVIC CENTER MASTER PLAN DISCUSSION
Presently the Civic Center Complex is undersized and does not meet the existing needs of staff
and citizens. Several Departments are bifurcated with some staff accommodated at different
locations within the complex and in other City owned buildings offsite. Operational inefficiencies
have resulted which include increased travel time and inconvenience to the public. The lack of
adequate space overall has resulted in inefficient use of space in the individual buildings and in
some cases has prevented departments from being ideally co-located with other departments,
with which they most frequently interact. The City has been forced to rely on off-site office space
and storage; and has increasingly been unable to provide adequate sized work spaces for
comparable job descriptions of City staff. All Civic Center buildings are also in need of
technological and building code upgrades that will require retrofitting.
Goals and Objectives
The preparation of the Civic Center Master Plan was a multi-faceted task, with the goal of
developing a Civic Center Complex that will accommodate the existing and future needs of City
staff and the community, through the projected build out of the City at a population of 275,000.
There were a number of objectives including maintaining the civic identity and character of the
historic core of City government; consolidating City functions to improve operational efficiency;
maximizing the use of existing buildings through remodeling, retrofitting and expansion to
minimize expense to the City; and creating a more pedestrian friendly, inviting complex for the
community and staff. The Civic Center Master Plan maintains and integrates the present location
of the Main Library. The City plans to improve and modernize the Library, however a detailed
plan and identification of funds are not addressed in the Master Plan. The ultimate goal is to
create a fully integrated and connected relationship between all buildings in the expanded Civic
Center complex. A high priority was also placed on accommodating all staff and visitor parking
on-site to alleviate the current impacts on the surrounding neighborhood. Previous Master Plans,
as well as the initial draft of tonight's proposed Masterplan, contemplated a 275-space parking
structure to meet the total combined employee and public parking need at build out. This was
contemplated to occur in Phase IV of construction ond would have provided the City with an
unnecessary parking surplus in excess of the projected need of 442 parking spaces. The
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PAGE 4, ITEM NO.: .3
MEETING DATE: 07/10/01
proposed Masterplan recommends that with the construction of a new Fire station to be located
on the sife of the Mercy Building, additional surface parking can fhen be creafed on fhe current
site of Fire Station #1 which will be demolished and on the sites of the former legislative Building
and Community Development Building. Approximately 160 spaces allocated as follows will
become a part of the new total parking count of 464 spaces at the Civic Center enabling a net
savings to the City of $2 million:
. @ Old Fire Station - Extend parking along south side of site
. +40 at Legislative Building - Expand parking along north edge of site
. +BO At Old Mercy I New Fire Station
Master Plan Tasks
The Project team was tosked with determining the stoff and space requirements to accommodate
the City's current staff, as well as 10 years and 30 years from today. The existing facility was
assessed to determine what areas could be expanded/remodeled and what areas were obsolete.
Department Heads were interviewed to determine existing and future staffing requirements. From
this a space needs program was developed. The resulting Master Plan sought to maximize reuse
of existing assets, functional/operational efficiency and energy savings. A phasing and
implementation plan was developed that allows for the continuation of City services during each
phase of construction. The development budget is an estimate that takes into consideration all
project costs including design, construction, furniture, fixtures and equipment, landscaping and
parking areas.
Existina Facility Assessment
The existing Civic Center Complex consists of 7 buildings. The City Hall, Public Services Building
(PSB), Existing Police Building, legislative and Community Development building on-site; and the
EI Dorado and Mercy buildings off-site across F Street. Each of these buildings were assessed to
determine their ability to satisfy the space and functional needs of the City. The inspections
focused on the general condition of each structure, it's systems and apparent code compliance.
Determinations were made as to the extent individual buildings could be remodeled and
expanded, and made compliant with current Building and ADA code requirements. It was
determined that the current and future needs of the Civic Center operations could be
accommodated by expanding and remodeling the City Hall, PSB and the existing Police facility.
The Community Development and legislative buildings will be razed to accommodate parking.
The Mercy building will be removed to allow for the relocation of Fire Station #1 and the fueling
facility, and the EI Dorado Building will be removed to make way for the new Police
Headquarters. The demolition of the Mercy building ond relocation of the Fire Station and
Fueling facility will require a supplemental environmental analysis as they were not included in
the review of IS-01-017.
City Staff and Space Needs Assessment
RNl interviewed each of the City Department heads and toured their respective work spaces in
order to determine current and projected staff/space needs. Space standards were developed to
establish specific office sizes and applied to the staff needs to determine an overall space
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PAGE 5, ITEM NO.: .3
MEETING DATE: 07/10/01
requirement. It was agreed that the year 2010 space standard would be the basis for the design
and budgeting. The resulting Civic Center Design took into occounf space/staff requirements in
addition to department adjacencies that would maximize the functionality and efficiency of the
Civic Center. The design process for the City Hall Building remodel and expansion was
advanced through an additional step, through schematic design to further refine space needs
and optimize departmental adjacencies. During the next phase of design on the other Civic
Center build-up, adjustment and refinement of space plans may result in changes to the space
needs defined in the pre-design phase submittal.
The following outlines the space required to meet the current staff needs, as well as the future
staff and space needs:
Existing 2010 2030
Staff Reauirements 287 367 391
Space Needs 63,041 sf 93,030 sf 96,000 sf
Parkina Needs 248 spaces 422 spaces 442 spaces
Site Considerations/Design Objectives
The Project Team was sensitive to a number of site constraints when developing the site
improvement concepts. It was important to limit the impact on adjoining residents, and eliminafe
the need for off-site parking within the surrounding neighborhood. In order to provide a
pedestrian friendly atmosphere, special care was taken in addressing the traffic flow on Fourth
Avenue and F Street. The goal was fo create an inviting, livable space for both staff ond the
community by preserving and enhancing the open space and pedestrian features of the Civic
Center Complex. The combined effort of the Project Team and City Staff met most if not all the
objectives resulting in a plan that:
. Maintains the historic and architectural integrity of the Civic Center,
. Enhances the connection to the surrounding community, Library and future Police
Headquarters,
. Creates a "sense" of place for the community and city stoff alike,
. Encourages pedestrian activity by improving and separating vehicular and pedestrian
circulation,
. Improves the accessibility and way-finding for visitors within the Civic Center,
. Connects the Civic Center to Third Avenue,
. Minimizes the impact to adjoining residents,
. Moves all visitor and employee parking on-site, and
. Maximizes efficiency and minimizes cost, by reusing, expanding and adapting existing
space to meet future need..
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PAGE 6, ITEM NO.: 3
MEETING DATE: 07/10/01
Civic Center Site Plan
The Civic Cenfer Master Sife Plan was developed through a design charrette process (See Exhibit
2). City staff participated with the Project team over a series of days, providing input evolving the
design. The resulting Site Plan is a compilation of the operational and space needs of all
departments in a manner thaf best serves the needs of the public and overall function of the Civic
center. Further refinement to the Master Plan was performed by City staff and the Project Team
to address budget, schedule, phasing, and the availability and timing of funding.
Civic Center Conceptual Desian
The Civic Center Master Plan is a 4-building design, that involves the expansion and/or
renovation of the City Hall, PSB and existing Police Facility, and ultimately the relocafion of Fire
Station #1 and a new fueling facility at the Mercy site (See Exhibit 3). This relocation allows for
the elimination of the proposed parking structure and facilitates the improvement of Fire Station
#1. As mentioned above, the relocation was not discussed in the accompanying environmental
document and will require a separate environmental review. Enhancements to circulation,
parking, landscaping, open space and pedestrian scale will be completed throughout the Civic
Center Complex.
The Building Floor Plans are designed to:
. Maximize fhe use of existing space,
. Enhance the functional efficiency of the staff and interaction of departments,
. Respond to the operational needs of each department,
. Improve public service, access, signage and circulafion,
. Adhere to City space stondards, and
. Allow for future flexibility and growth.
The City Han building will be expanded by 16,111 square feet to meet the year 2010 space
standard and will house Finance, City Manager, Human Resources, City Clerk, City Council, and
City Attorney. The Public Services Building will be remodeled and will house Public Works,
Engineering, Building and Planning and the Council Chambers. The Existing Police Facility is
planned to be remodeled and will house Community Development, Parks and Recreation, Public
Information Officer, Credit Union and a portion of Building and Planning on the ground floor.
The basement will house MIS, and the City Clerk Storage.
Design standards will be implemented to improve energy conservation in the Civic Center
Operations. The design and construction of the Civic center will exceed Title 24 standards to
qualify the Civic Center for San Diego Gas & Electric's "Savings by Design" Incentives. Energy
saving design features that will reduce the need for air conditioning and artificial lighting include:
. Providing natural ventilation with operable windows that offer cross flow throughout floor
spaces,
. Exterior walkways that protect against solar heat gain
...,¡¡ - (,
PAGE 7, ITEM NO.: .3
MEETING DATE: 07/10/01
. Designing the floor plate size to maximize natural light access,
. Installing clerestory lighting, and
. Adding insulation in wall and ceiling spaces.
In addition, staff will be investigating energy conservation measures, systems and approaches to
reduce utility cost which may include thermal storage and cogeneration. Managing the City's
electricity usage is and will continue to be a priority in the coming years. The City of Chula Vista
currently uses an average of 14,000,000 kW-hours annually. The City's electricity usage is
expected to grow by at least 2,500,000 kW-hours per year as new facilities such as the Police
facility, Civic Center expansion and new Fire Station come on line.
The new construction activities noted above involve installing separate back-up power and HVAC
systems at the new Police facility and Fire Station. The back-up power system will only operate
during power interruptions. Renovation activities involve upgrading the current HVAC system at
the Civic Center Campus. Based on the volatile electricity and natural gas costs and the
estimated cost of the new back-up power and new/upgraded HVAC systems for the Civic Center
facilities, a preliminary review to assess viability and cost of installing a Central Co-
generation/HVAC system to supply electricity and heating and air conditioning needs for the Civic
Center Campus indicate that co-generation is a viable option that should be investigated further.
Preliminary estimates indicate that an appropriately sized co-generation system that will meet the
needs of the Civic Center Campus at approximately $ 7.0 million. Development of a co-
generation facility was not reviewed in the attached environmental document and will require a
separate CEQA analysis.
Phasina Plan
A primary consideration in developing the Phasing Plan was to allow the City to maintain
operations with the least amount of disruption to staff and the public, and to do so in a manner
that would not require moving staff to off-site leased space. This effort required the
implementation of the Civic Center improvements to follow the completion of the new Police
Headquarters so that the former Police Building could be used as the staging area.
This method saves the City approximately $1.5 million by eliminating the need for off-site rented
space to house displaced staff. This will also result in an immeasurable cost savings by
minimizing disruption to City staff. Substantial additional savings of $6 million result from
remodeling ond expanding existing facilities in the Civic Center rather than building all new
construction. The recommended phasing plan has four phases and can begin immediately after
the completion of the Police headquarters expected in July 2003 (see Exhibit 4). Construction of
the co-generation facility is presently not identified with a particular phase. Phase IV and the co-
generation facility will require a supplementary CEQA approval prior to commencement of work.
Phase Date
Phase I 3cd Qtr 2003- 3,d Qtr 2004
Phase II 3'd Qtr 2004- 3'd Qtr 2005
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PAGE 8, ITEM NO.: 3
MEETING DATE: 07/10/01
3,d Qtr 2005- 3,d Qtr 2006
3,d Qtr 2006- 3,d Qtr 2007
Development Budaet
The overall development cost to complete the four phases of the Civic Center Master Plan,
excluding estimated 20-year financing costs of $23.5 million, is estimated to be $43.7 million,
ond is outlined below. This cost includes staff time reimbursement and construction of a
cogeneration facility. The budget includes costs for design, construction, on-site and off-site
landscaping and hardscape, furniture, fixtures and equipment, contingency, city staff time
reimbursement and construction of a co-generation facility.
Phase Area Cost
I City Hall $13,600,000
II Public Services 9,400,000
III Former Police Building 9,200,000
IV Fire Station & Fuel Facility 4,500,000
Cogeneration Facility 7,000,000
Total $43,700,000
The sources and methods of funding are still under review, although it is anticipated that
Development Impact Fees will cover approximately 80% of the cost. This information will be
brought forward to the Council/Agency at the point in time staff is requesting appropriation for
the construction.
POLICE HEADQUARTERS MASTER PLAN DISCUSSION
The present facility of 50,000 square feet, completed in 1971, was built to accommodate a police
force to serve a population of 115,000. This is significantly undersized to serve today's
population of approximately 180,000. The estimated requirement to serve today's needs is
80,000 square feet of program space, which with the addition of circulation and other support
spaces would result in a gross building area 100,000 square feet. The recommended size for a
new Police Headquarters building to serve the build-out population of Chula Vista is 140,566
square feet, served by 411 parking spaces.
In order to ensure that the quality and level of service provided by the Police Department
continues and improves it is necessary to construct a new full-service Headquarters facility to
support current and future needs of the Police force.
The Project Team consisting of Highland Partnership, McClaren, Wilson & lawrie, Carrier
Johnson and RNl Design, have worked closely with the Policy Oversight Committee, comprised
of Police and City staff and members of Council, to develop the programming and conceptual
design of the new Police Headquarters Facility. The Project Team prepared a space needs
~-X
PAGE 9, ITEM NO.: .3
MEETING DATE: 07/10/01
assessment, developed floor plans and a conceptual design for the new facility that responded to
the input of the Policy Oversighf Committee (the Police Master Plan is ottached os Exhibif 10).
Goals and Objectives
The Project Team was tasked with developing a space needs assessment to address the needs of
the Police Department through the build-out of the City, identify a site for its construction, and
develop a conceptual design, budget and development schedule for the Police Headquarters.
Overview of Police Delivery Requirements
Police buildings are no longer designed with the "fortress" mentality that was prevalent in 1971
when the current facility was constructed. The emphasis is now on community policing. Police
departments are now more interactive with the public and provide community meeting space,
and accommodate volunteer programs in house. Further, it is viewed as beneficial to locate
adjacent to a government center to provide consolidated services to the public.
The ideal police facility for today is well planned for future growth and is customized for efficient
and effective operation, and accommodates emerging technology. The optimum facility design
should understand and respond to the history and unique nature of the city it will serve.
There were a number of specific site considerations for locating the new police facility such as
locating a level, rectangular shaped parcel site with access to at least two streets and large
enough to accommodate separate areas for visitor and staff parking, as well as secured parking.
In addition, the location should be easily identifiable to the public and close to complimentary
government services such as Courts, Code enforcement/zoning, and Finance.
Area Analysis and Site Selection
A regional analysis was conducted as the basis for identifying an area, and ultimately a final
location for the Police Headquarters. The City was broken down into 5 regions: Northwest,
Southwest/Bayfront, Bonita/Rancho Del Rey, Otay Ranch, and Eastlake (the area boundaries were
provided by Chula Vista GIS, see Exhibit 6). These areas were analyzed with general criteria to
determine the best area in which to locate the Police Headquarters.
The team concluded that Area 1, the Northwest Area of the City, was the optimal area to locate
the new Police Headquarters for the following reasons:
. It is the historic core of the city
. Has the highest concentration of calls for service
. Provides opportunity for strengthening Urban Design connections
. Existing location of Civic Center and Police Headquarters
. Provides opportunity to consolidate government services with the Civic Center which
promotes community policing and community governmenf
. Supports the redevelopment of downtown
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PAGE 10, ITEM NO.: 3
MEETING DATE: 07/10/01
The Police staff also felt it was important for the headquarters to remain in the area of the Civic
Cenfer to support Community government and policing, and cooperative problem solving. In
addition, Police staff believed that the headquarters should remain on the West side of the City
based on current and projected need for services. Although the growth is occurring on the East
Side of the City, the Police department expects the current policing patterns and greater
requirements for service on the West side to remain the same throughout build-out.
Four sites were reviewed for locating the Headquarters (see Exhibit 7). There were many
considerations included in the site analysis, but the following were considered primary:
. Parcel size able to accommodate the police program
. Location closest to highest concentration of calls for service
. Project Cost/Yalue
. Support downtown revitalization
. Provision of consolidated government services
The results of the site analysis were presented to the Policy Oversight Committee on September
11, 2000 and at a City Council Workshop on September 16, 2000. The Project Team
recommended Friendship Park as the preferred site for the Police Headquarters. Selection of
Friendship Park caused a great deal of concern in the community, and based on this response,
the City Council directed the Project Team to revisit the sites under consideration. After thoughtful
review of the remaining sites, the Commercial Property located at the southeast corner of 4th and
F Street was identified as the preferred site because the Project Team and Policy Oversight
Committee felt this site best met the overall standards of law enforcement, and goals for
provision of consolidated government.
New Police Headauarters at the Commercial Site
The commercial site was identified as the preferred site because it best mef the overall site
requirements including:
. provision for consolidated government services,
. immediate proximity and urban planning connection to the Civic Center,
. identifiable, visible locotion that is convenient for the public,
. facilitation of interdepartmental interaction,
. promotion of community policing/outreach, and
. meeting standards for police operations.
The environmental document contemplated location of the new police headquarters at four sites.
Mitigation measures were defined for each location. The potential impacts of locating at the
commercial center and the associated mitigation measures are discussed in detail in the
Mitigated Negative Declaration attached as Exhibit 1, and are summarized below
1. Noise due to construction, mechanical equipment and operations.
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PAGE 11, ITEM NO.: 3
MEETING DATE: 07/10/01
Mitigatian measures include preparation of 0 noise study fo insure that heating and
ventilation equipment has been screened sufficiently to reduce noise levels; development of
a "Good Neighbor Policy" to include operational guidelines and educational pragroms for
police personnel intended to minimize potential conflicts with surrounding neighborhoods;
loading/unloading of prisoners in the underground parking area; prohibition of servicing
vehicles on site; and limiting construction hours.
2. Spill light and Glare from Parking and Exterior Building lighting
Mitigation measureS include equipping all outdoor light fixtures with shields to avoid
substantial spill light and/or glare on the adiacent residential properties.
3. Potential to unearth significant fossils during excavatian
Mitigation measureS include retaining a qualified paleontologist to monitor excavation
activities, and if important fossils are found preparation and implementotion of an
appropriate salvage program.
Needs of the Chula Vista Police Department
The City of Chula Vista Police department is now the 22,d largest in the state. The police
department handled 96,000 calls in 1999. There are 55 square miles to police, and
approximately 180,000 citizens to serve proiected to grow to 275,000 at the build-out of the City.
The existing facility is significantly undersized to accommodate the existing sworn staff of 221,
and the civilian staff. Seventy officers have been added to the police force since 1992, at which
time the existing facility was already undersized to adequately meet the needs of the police force.
The lack of space has required the conversion of an already short supply of storage space into
offices, often times with the officers sharing desk and office space. The lack of storage has been
exacerbated by state and federol requirements to keep evidence longer; increased security
requirements for narcotics and maney storage. This has necessitated leasing of off-site storage
for equipment. In addition, two large cargo containers have been brought on-site to store
evidence, and the garage has been converted into bulk property storage.
The police department requires a full service police facility that includes full service records,
operations, police dispatch, investigations, property room, and crime lab. The facility needs to be
flexible, efficient, "smart" technologically, and able to accommodate the existing staff as well as
the growth of the department through City build-out. In addition, the facility must support a
community oriented policing style and house programs such as Senior Volunteer Patrol, CAST
(Citizen Adversity Support Team), and provide for Reserve and Explorers programs. Ultimate
parking needs of 411 spaCes must be fully accommodated on-site to alleviate parking congestion
created by the current need for many staff to park on the surrounding neighborhood streets.
Space Needs Study Process
Developing a Police Headquarters that serves today's needs as well as those well into the future is
critical. In order to develop the space requirements for the Chula Vista facility a multi-step
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PAGE 12, ITEM NO.: :3
MEETING DATE: 07/10/01
process was undertaken. T oday's police facility is significantly undersized, the first goal was to
"right size" the facility and then second, to proiect the needs of the future. The overall space
requirement is determined by analysis of a number of factors including:
. Proiections for population growth and build out population,
. New and emerging technologies, and equipment needs,
. New and expanding operations and programs,
. Patrol and staff needs, and
. Policing needs and trends.
Each of the mitigation measures associated with the commercial site have been incorporated into
the design of the proiect. In addition, a detailed interview and observation process was
undertaken. This involved interviewing both command and line staff. This process assists in not
only determining space needs, but in defining methods and space configuration to optimize
police operations and efficiencies.
Space Proaram
The total net program space requirement, at City build-out for the Police Headquarters is
111,133 square feet. At build-out the City's population is estimated to be 275,000 with 0 Police
Force of 536. The following outlines the exisfing and future Police Staff and Space needs:
Today Midpoint Build-out
Population 180,000 208,000 275,000
Staff 329 431 536
Net Program (SF) 80,000 103,848 111,133
Building Square Feet "50,000 131,647 140,566
'Existing Building (gross area)
The required total (gross) building space for the new Police Headquarters is 140,566 square feet
served by 411 parking spaces. The space needs projections are summarized by use below:
Use Square Parking
Feet Spaces
Administrative Services 32,695 44
Operations/Patrol 30,997 182
Investigations 14,635 77
Special Operations 3,311 17
Fiscal Operations Research 1,901 12
Support 27,594 36
Visitor Porking 43
Net Program Square Feet 111,133
Circulation/Restrooms/Common Area/Mechanical 29,433
Total Building/Parking Area 140,566 411
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PAGE 13, ITEM NO.: 3
MEETING DATE: 07 /10/01
Police BuildinQ ConceDt PIQn
The primary objectives of the building design were to create 0 project with significant civic
presence and an energy efficient design that has a strong connection to the adjacent Civic
Center. Although the selected site offers an opportunity for an architectural style different from the
existing civic center buildings the use of materials needs to be sensitive to the surrounding area,
complimentary and creating a connection to the existing Civic Center. It was also important to
create a significant public space to invite the community, and private secure exterior space for the
staff to promote a vital work place promoting interaction amongst the staff. The building concept
plan and photos of the model are included as Exhibit 8.
Drawing a relationship to Civic Center was very important, as this is the gateway to the Heart of
Chula Vista. In addition it is very important to promote and reinforce effective interdepartmental
interaction. The "Nestled Courtyard Concept" of the building design reinforces interaction and
sense of community by allowing public open space, and private secure exterior space. The
Headquarters will have identifiable architecturol entry elements, while providing necessary
operational security. The building elevations will be integrated into the surrounding area with
sensitive massing and use of materials to create a layered architectural experience, and setback
from the surrounding buildings (see Exhibit 9).
Design standards will be implemented to improve energy conservation in the Police Operations.
The design and construction of the Police Headquarters will exceed Title 24 standards to qualify
the Police Facility for San Diego Gas & Electric's "Savings by Design" Incentives. Energy saving
design features will be incorporated to reduce the operation of air conditioning, artificial lighting,
and mechanical systems.
Orienting the building to reduce the east/west facing surfaces will protect from solar heat gain.
This orientation also reduces heat loads in the morning and afternoon. Planned exterior
walkways will provide cost effective circulation and protection from solar heat gain. In addition,
the reduced floor plate size will maximize natural light access reducing the need for artificial
lighting and air-conditioning. Separate mechanical systems will be designed for each building
wing. This will allow for operating cost efficiencies by separating the 24-hour wing, and the wing
that primarily operates during the business day.
Police HeQdQuQrters Floor PIQn
The building is planned for 4 floors, a basement and three above-ground floors (see Exhibit 5).
The Basement floor will be comprised of parking, short-term holding facility, firearm range,
property & evidence, vehicle exam, and mechanical equipment. The Ground Floor will house
parking patrol offices, crime analysis, vice, school resources, records and data entry, community
facilities/ multi-purpose room, a public plaza, and internal courtyard. The second floor includes
the top level of the parking structure, investigations, administration, administrative services, locker
rooms and lunch room. The crime lab and communications center are located on the third floor,
along with mechanical equipment penthouse space.
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PAGE 14, ITEM NO.: 3
MEETING DATE: 07/10/01
Construction Schedule
The development and construction of fhe Police Headquarters will take 26 months to complete.
Construction is anticipated to begin in October this year and be complete mid-year 2003.
Activities Start/Complete
Design Phases 512001-312002
Permitting Phases 9/2001-4/2002
Stort Construction 1012001
Tap-out Steel Celebrotion 7/2002
Enclose Building 612002-12/2002
Inferior Finishes 9/2002-6/2003
FF&E 6/2003-712003
Finollnspections 5/2003-6/2003
Grand Opening Celebration 7/2003
Development Budget
The overall development cost for the new Police Headquarters is estimated to be $64,175,000.
This cost includes the City's acquisition cost of the EI Dorado Building of $1,175,000. These
monies have already been expended; however, to present an overall picture of "acquisition" costs,
it is included below. The overall project budget for new expenditures is estimated to be
$63,000,000. This is a comprehensive budget that includes site acquisition, on-site and off-site
improvements, design, construction, furniture, fixtures & equipment, contingency, and staff time
reimbursement. There will also be the additional cost of financing this project over 30 years,
estimated at $60 million. It is anticipated that Development Impact Fees will cover 55.9% of this
cost, with the remainder to be funded from general city revenues.
Component Cost
Building $32,718,915
Parking Structure 6,878,760
Property Site Acquisition and Preparation 7,550,000
EI Dorado Building* 1,175,000
Off-site and On-site Improvements 6,897,000
Design and Engineering 4,118,134
Furniture, Fixtures, & Equip & Contingency 4,837,191
Total Development Cost $64,175,000
Less EI Dorado Building (1,175,000)
Total Development Budget $63,000,000
*Amount City paid for EI Dorado Building
CONSISTENCY WIT" TOWN CENTRE I AND .. REDEVELOPMENT PLANS
The Civic Center Master Plan and Police Master Plan are consistent with the goals of the Town
Centre II Redevelopment Area which includes improving and expanding the Civic Center;
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PAGE 15, ITEM NO.: 3
MEETING DATE: 07/10/01
comprehensive beautificotion of the area; fostering cooperation between the Town Centre I and II
Project areas, and supporting the resurgence of Town Centre I, and retention and expansion of
viable uses including public facilities. The relocafion of the Police Headquarters at the
Commercial Property within Town Centre I also facilitates and supports the goals of Town Centre
II by facilitating the expansion/improvement of the Civic Center; fostering cooperation between
Town Centre I &11; and retention and expansion of public facilities.
The Civic Center Master Plan and Police Master Plan are also consistent with the goals of the
Town Centre I Project Area including comprehensive beautification of the area; orienting people
to the downtown core area; and retention and expansion of viable uses including public facilities.
The construction of the new Police Facility at the Commercial site supports the redevelopment
goals of Town Centre I by maintaining the close proximity of the Police Force to downtown
retailers. If the Police Department had been moved to an area outside of downtown, there would
have been a loss in area population to support the downtown service providers and restaurants.
CONCLUSION
The Master Plan has been designed to maximize the reuse of existing facilities to reduce costs,
reduce and/or minimize impacts on the surrounding community, and to meet the long term
needs of the City of Chula Vista. The remodeling, expansion and new construction is necessary to
accommodate the needs of the growing community. Staff recommends approval of the Master
Plan and adoption of the Mitigated Negative Declaration. Locating the new Police Facility at the
Commerciol property represents a significant opportunity for the City of Chula Vista to expand
and consolidate government services at the current location of the Civic Center Complex. The
expansion and remodeling of the Civic Center Complex and new construction of the Police
Headquarters is essential to maintain the current level of services to the Chula Vista Community.
FISCAL IMPACT
General Fiscal Impact
Staff fully recognizes the significance of the debt burden associafed with the proposed Police and
Civic Center development programs and have submitted a construction program that attempts to
schedule approvals for the new Police Department facility to coincide with the completion of the
"new" corporation yard and to minimize debt service payments by the General Fund to the
greatest extent possible. Clearly this recommended course of action is not without consequences.
Approval of these two major projects immediately following the completion of the new
corporation yard project, with the resultant cumulative long-term annual debt service and
increased/ongoing_operations/maintenance costs will impact the City's consideration of any new
programs, or expansion of existing programs, unless either new funding sources are identified or
actual revenue realized greatly exceeds current projections. In the event of an economic
downturn, especially one so severe as to slow development beyond a level that impact fee
revenues are sufficient to fund the related portion of the annual debt service, the City would likely
be forced to consider significant service level reductions in existing programs.
..3 - IS-
PAGE 16, ITEM NO.: 3
MEETING DATE: 07/10/01
Civic Center
The approval of the Civic Center Master Plan and accompanying environmental document does
not in itself have a fiscal impact, and therefore no appropriations are requested at this time. If
and when staff is authorized to proceed with the project, the total cost of the proposed
improvements and expansion of the Civic Center complex is estimated at $43.7 million. It is
anticipated that the project will be financed through a municipal bond issue resulting in estimated
financing costs of $23.5 million spread over 20 years, with estimated annual debt service
requirements of $3 million. The annual debt service requirements are anticipated to be funded
by Development Impact Fee revenues (approximately 80%) and general City resources
(approximately 20%). Annual operations and maintenance costs for the Civic Center complex
ore not expected to increase as a result of this project, and could potentially decrease due to
updated heating/air conditioning, elimination of the Mercy Building, etc.
Police Headauarters Facility
The approval of the Police Headquarters Master Plan and accompanying environmental
document does not in itself have a fiscal impact. The total project cost, including site acquisition,
design, engineering, on and off-site improvements, construction, furniture, etc. is estimated at
$63 million. In a separate but related item on this ogenda, staff is requesting an appropriation
from the Redevelopment Agency of approximately $5.3 million for site acquisition and
development. It is anticipated that the construction and remaining development costs, less City
staff time and site acquisition costs, ($54.7 million) will be financed through a municipal bond
issue resulting in estimated financing costs of $60 million spread over 30 years, with estimated
annual debt service requirements of $4.2 million. The annual debt service requirements are
anticipated to be funded by Development Impact Fee revenues (55.9%) and general City
resources (44.1 %). Annual operations and maintenance costs for the new police headquarters
facility are projected roughly at $960,000 per year, including custodial services, utilities, etc. This
is a gross cost figure, without consideration for the reduction in those same costs when the EI
Dorado Building is taken out of service.
DeveloDment ImDact Fees
The updated cost estimates on these two projects in addition to the final figures on the new
Corporation Yard will have a very significant impact on the amount of revenue that is required
from the development community in the form of development impact fees in order to minimize
any effect on the quality of life within the City as a result of growth. In order to minimize the fee
increase on a per unit basis, it will be imperative that the City adopt an interim fee increase to
the Public Facilities Development Impact Fee as soon as possible. Staff estimates that the
necessary interim increase in the Public Facility Development Impact Fee would be approximately
$3,664, resulting in a $6,282 fee per equivalent dwelling unit (EDU). The current fee is set at
$2,618 per EDU. Should the Council approve these two master plans, staff would immediately
begin discussions with the development community regarding an interim fee increase with the
goal of bringing it back to the Council for adoption within 60 days. Staff also feels that it would
be prudent at the same time to consider adopting a new interim fee for recreational facilities
pending completion of the Parks Master Plan.
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PAGE 17, .TEM NO.: 3
MEETING DATE: 07/10101
ATTACHMENTS
1. Negative Declaration IS-01-017
2. Civic Center Master Plan
3. Moster Floor Plans
4. Phasing Plans
5. Civic Center Master Plan and Supporting Documents
6. Area Map
7. Site Map
8. Police Concept Plan/Model Photos
9. Police Building Elevations/Vignettes
10. Police Headquarters Master Plan and Supporting Documents
nCOMMDEV\STAFF.REP\O7-10-01\PD #2 Police Focilily-C;vic Cenlee.doc
..3-/7
AGENCY RESOLUTION NO.
AND
COUNCIL RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT
AGENCY OF THE CITY OF CHULA VISTA ADOPTING MITIGATED NEGATIVE
DECLARATION IS-01-017 AND ITS ASSOCIATED MITIGATION MEASURES
AND MONITORING PROGRAM FOR THE CIVIC CENTER MASTER PLAN
AND THE POLICE HEADQUARTERS MASTER PLAN
WHEREAS, the City of Chula Vista has experienced significant growth and is projected to reach build-out
within the next twenty years; and
WHEREAS, staff has determined in order to ensure quality service from City departments that it is
necessary to expand and modernize the Civic Center and to construct a new Police Headquarters; and
WHEREAS, on August 1, 2000, the City Council approved an agreement with Highland Partnership, Inc to
prepare a Civic Center Complex expansion plan, and space needs programming and a conceptual design for the
new Police Headquarters Facility; and
WHEREAS, the Master Plan has been designed to maximize the reuse of existing buildings to reduce costs;
minimize the impact on the surrounding community, and to meet the needs of the City staff and community through
build-out; and,
WHEREAS, the City's Community Development Department Planning and Environmental Manager
reviewed the proposed Project and issued Mitigated Negative Declaration IS-01-017 for the project in accordance
with CEQA.
NOW, THEREFORE, THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA
VISTA does hereby find, order, determine and resolve as follows:
1. The proposed project could have a significant impact on the environment however there will not be a
significant effect if the mitigation measures are implemented; accordingly Mitigated Negative
Declaration IS-01-017 was prepared and is hereby adopted in accordance with CEQA.
2. The proposed project is allowed under the General Plan and is consistent with the Town Centre I and II
Redevelopment Plans and shall implement the purpose thereof; the project shall assist with the
elimination of blight in the Project Area.
3. The Redevelopment Agency of the City of Chula Vista hereby approves the Civic Center Master Plan,
which includes the expansion of the existing Civic Center and the construction of a new Police
Headquarters at the Commercial Center Site in accordance with the Mitigation Measures and
Monitoring Program in the document attached thereto as Exhibit 1.
Presented by Approved as to form by
David D. Rowlands, Jr.
City Manager
J:ICOMMDEVIRESOSIPD #2c Police Facility-Civic Center.doc
..,;i-Iff
AGENCY RESOLUTION NO.
AND
COUNCIL RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING THE CIVIC CENTER MASTER PLAN FOR
THE EXPANSION OF THE EXISTING CIVIC CENTER IN TOWN CENTRE II
REDEVELOPMENT AREA
WHEREAS, the City of Chula Vista has experienced significant growth and is projected to reach build-out within the
next twenty years; and
WHEREAS, the facilities that house City staff services are undersized for today's and the future population. In
addition, modernization and retrofitting is required to meet current building code requirements and to accommodate current
and emerging technology; and,
WHEREAS, staff has determined in order to ensure quality service from City departments that it is necessary to
expand and modernize the Civic Center; and,
WHEREAS, on August 1, 2000, the City Council approved an agreement with Highland Partnership, Inc. to prepare a
Civic Center Complex expansion plan; and
WHEREAS, the Master Plan has been designed to maximize the reuse of existing buildings to reduce costs; minimize
the impact on the surrounding community, and to meet the needs of the City staff and community through build-out; and,
WHEREAS, The Civic Center Master Plan project is consistent with the goals of the Town Centre II
Redevelopment Area which includes improving and expanding the Civic Center; comprehensive beautification of the area;
fostering cooperation between the Town Centre I and II Project areas, and supporting the resurgence of Town Centre I,
and retention and expansion of viable uses including public facilities; and,
WHEREAS, the City's Community Development Department Planning and Environmental Manager reviewed the
proposed Project and issued Mitigated Negative Declaration 15-01-017 for the project in accordance with CEOA.
NOW, THEREFORE, THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA do
hereby find, order, determine and resolve as follows:
1. The proposed project could have a significant impact on the environment however there will not be a significant
effect as the mitigation measures are implemented within the proposed Plan: accordingly Mitigated Negative
Declaration i5-01-017 was prepared in accordance with CEOA.
2. The proposed project is allowed under the General Plan and is consistent with the Town Centre II
Redevelopment Plan and shall implement the purpose thereof; the project shall assist with the elimination of
blight in the Project Area.
3. The City Council and the Redevelopment Agency of the City of Chula Vista hereby approve the Civic Center
Master Plan, which includes the expansion of the existing Civic Center within the Town Centre II Redevelopment
Area in accordance with the Mitigation Measures and Monitoring Program in the document attached thereto as
Exhibit 1.
Presented by:
David D. Rowlands, Jr.
City Manager
J:ICOMMDEVIRESOSIPD #2a Police Facility-Civic Center-.doc
J -(9
AGENCY RESOLUTION NO.
AND
COUNCIL RESOLUTION NO.
JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY
OF THE CITY OF CHULA VISTA APPROVING THE POLICE HEADQUARTERS MASTER
PLAN FOR THE CONSTRUCTION OF THE NEW POLICE HEADQUARTERS AT THE
COMMERCIAL CENTER SITE WITHIN THE TOWN CENTRE I REDEVELOPMENT
PROJECT AREA
WHEREAS, the City of Chula Vista has experienced significant growth and is projected to reach build-out within the
next twenty years; and
WHEREAS, staff has determined that the existing facility is significantly undersized and in order to insure the quality
and level of service provided by the Police Department it is necessary to construct a new Police Headquarters; and
WHEREAS, on August 1, 2000, the City Council approved an agreement with Highland Partnership, Inc. to prepare
space needs programming and a conceptual design for the new Police Headquarters Facility; and
WHEREAS, a site selection process was conducted and the Commercial Property located at the southeast corner
of 4th and F Street was identified as the preferred site because this site best met the overall standards of law enforcement,
and goals for provision of consolidated government; and
WHEREAS, the environmental document contemplated location of the new police headquarters at four sites.
Mitigation measures were defined for each location. The potential impacts of locating at the commercial center and the
associated mitigation measures are discussed in the Mitigated Negative Declaration IS-01-017; and
WHEREAS, the Police Master Plan is consistent with the goals of the Town Centre I Project Area including
comprehensive beautification of the area; orienting people to the downtown core area; and retention and expansion of
viable uses including public facilities. The construction of the new Police Facility at the Commercial site supports the
redevelopment goals of Town Centre I by maintaining the close proximity of the Police Force to downtown retailers.
WHEREAS, the City's Community Development Department Planning and Environmental Manager reviewed the
proposed Project and issued Mitigated Negative Declaration IS-01-017 for the project in accordance with CEQA.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, order, determine and
resolve as follows:
1. The proposed project could have a significant impact on the environment however there will not be a significant
effect if the mitigation measures are implemented; accordingly Mitigated Negative Declaration IS-01-017 was
prepared in accordance with CEQA.
2. The proposed project is allowed under the General Plan and is consistent with the Town Centre I Redevelopment
Plan and shall implement the purpose thereof; the project shall assist with the elimination of blight in the Project
Area.
3. The City Council and Redevelopment Agency of the City of Chula Vista hereby approve the Police Headquarters
Master Plan in accordance with the Mitigation Measures and Monitoring Program in the document attached
thereto as Exhibit 1.
Presented by: Approved as to form by:
~~ !/de
David D. Rowlands, Jr.
City Manager Ci Attorney
J:\COMMDEVIRESOS\PD #2b Police Facility-Civic Center.doc ..3-~O
,
EXHIBIT 1
Mitigated Negative Declaration
MAR - J 2001
Project Name: Chula Vista Civic Center Master PI¡fu,'.AÌÏ~-FöUce'--Heaà.;¡u3rtersi
Relocation --------------~--3
Project Location: Northwest comer of Fourth Avenue and F Street (Civic Center Complex),
Southwest comer of Fourth Avenue and F Street (Mercy Site)
Southeast comer of Fourth Avenue and F Street (Commercial Site)
Southeast comer of Fourth Avenue and Davidson Street (Friendship Park
Site)
Northwest comer of Woodlawn Avenue and F Street (Corporation Yard
Site)
Assessor Parcel No: 568-110-32,33 (Civic Center Complex)
568-181-37-40,43,44 (Mercy Site)
568-270-03,11,10 (Commercial Site)
568-153-01 (Friendship Park Site)
567-031-27 (Corporation Yard Site)
Project Applicant: City ofChula Vista
Case No.: IS-OI-O17
Date: December 8, 2000
A. PROJECT SE'ITING
The existing Civic Center Complex is bordered by Fourth Avenue to the east, Davidson Street to
the north, and F Street to the south. The Civic Center is already developed and includes
Administrative Building, the Public Service Building and the existing Police Headquarters along
- with parking and landscaping.
A part of the proposed Civic Center Master Plan Update is the construction of a new police
headquarters facility. Four locations are being considered for the police headquarters. The
setting associated with each of the four alternative sites is discussed below.
Mercy. The Mercy site is a 5-acre parcel located at the southwest comer of Fourth
Avenue and F Street. The site is fully developed and includes office buildings, an
SDG&E substation, surface parking and landscaped areas. The existing administrative
offices within the Civic Center are located across F Street to the north. Commercial uses
associated with the Commercial site alternative are located on the other side of Fourth
Avenue to the east Multi-family residences are adjacent to the western boundary of the
Mercy site. Single-family homes are adjacent to the south. The City of Chula Vista
recently purchased the former Mercy office building and adjacent parking which together
E /-1
represents approximately 1.6 acres of the total 5-acre lot. City staff are cUITently located
in tIùs building.
CommerciaL The Commercial site is located at the southeast comer of Fourth Avenue
and F Street. The site is improved with an office building, a commercial strip center,
surface parking and landscaped areas. Surrounding uses include the City of Chula Vista
Library to the north, a commercial office building and parking garage -to the east,
condominiums to the south and a bank building to the west. The City of Chula Vista
owns the El Dorado Office building which is located on the west end of the site and
which represents 0.78 acres of the total 3.28 acre site.
Friendship Park. The Friendship Park site encompasses 4.0 acres and is located at the
southeast corner of Fourth Avenue and Davidson Street. The site is covered by
landscaping and walkways and is used as a passive park for picnicking, reading and
infonnal games. There are no buildings on the site. Surrounding uses include single-
family residences to the north and east, the City of Chula Vista Civic Center to the west,
and library to the south.
Corporation Yard. This 6.0-acre site is located at the northwest corner of F Street and
Woodlawn Avenue. The site is currently used by the City of Chula Vista for public
works equipment storage and servicing. Uses include administrative offices, garages,
vehicle repair facilities, storage areas and aboveground fuels tanks. SUlTounding uses
include light industrial and multi-family residential to the south, multi-family to the east,
hotel and trolley station to the north, and railroad and 1-5 to. the west.
B. PROJECT DESCRIPTION
The proposed project consists of the revision and adoption of the City of Chula Vista Civic
Center Master Plan and includes remodeling and expansion of the existing Civic Center complex
and the construction of a new City of Chula Vista Police Headquarters. The combined
improvements will total approximately 150,000 square feet of new building area and include
approximately 430 parking spaces. Another 450 parking spaces may be provided in a future
parking facility to be built within or in the vicinity of the Civic Center Complex; however, this
would be part of a future phase and is not considered as a part of this evaluation.
The remodeling and expansion of the Civic Center Complex is proposed to accomplish three
primary goals: (1) consolidate City departments currently located in off site office buildings into
the Civic Center Complex, (2) expand and enhance the existing Administrative Building, and (3)
convert the existing Police Headquarters to public service offices to allow for departmental
consolidation and future growth.
As illustrated on Figure 1, the existing Administrative Building will be remodeled and expanded
with another 15,000 square feet of space to a total of 33,000 square feet. Major uses which
would occur within the Administrative Building will include offices for the City Council
members, City Clerk, City Attorney, City Manager, Finance, and Human Resources. The
existing Public Service Building would be remodeled but the overall building area would remain
2
£ / -;;;?
at 29,000 square feet. The existing Police Headquarters building would be remodeled to
accommodate various Public Service Departments and to provide room for expansion as the
demand for City staff increases in the future. The total area of the Police Headquarters building
would remain at 50,000 square feet. In addition to the expansion and remodeling of buildings,
additional parking and landscape would be included in the Civic Center Complex.
As part of the proposed City of Chula Vista Civic Center Master Plan, the cmrent Police
Headquarters would be moved fi:om the Civic Center Complex to another location. The new
Police Headquarters would consist of a facility of approximately 135,000 square feet. The
building would be two to three stories above grade and include a basement. The maximum
height of the building would be 50 feet. There would be approximately 430 parking spaces
provided in a combination of surface area and parking structure. The facility would
accommodate a maximum of approximately 536 employees. It is anticipated that the patrols
fi:om the facility would operate with two to four shífts per day, 24 hours a day. Vehícular traffic
would consist of police personnel, unsworn personnel and visitors. The activities at this site
would not include repair of the police vehicles and no fuel would be stored on site.
The relocation site for the Police Headquarters has not been determined as yet. There are four
sites whích are cUITently being considered for the new Police Headquarters. Three of the sites
are in the immediate vicinity of the Civic Center Complex; these sites are referred to as the
Friendshíp Park site, Mercy site and Commercial site. It should be noted, however, that, on
December 5, 2000, the City Council directed staff to pursue rezoning the Friendshíp Park site to
park land. A fourth site, referred to as the Corporation Yard site, is located approximately one-
half mile west of the Civic Center Complex. While the size and uses associated with the
relocated Police Headquarters would remain essentially the same at all of the four alternative
sites, the configuration of the buildings and parking areas would be dependent upon the location.
Site plans for each of the four alternative sites for the Police Headquarters are illustrated in
Figures 2A through 2D; their location is identified in Figure 3.
C. ENVIRONMENTAL EFFECTS
An Initial Study conducted by the City of Chula Vista (including the attached Environmental
Checklist) determined that the proposed project in combination with other pending development
in the area could have significant cumulative impacts on local traffic ~ While lighting
associated with the proposed Police ^Headquarters would not represent a significant health and
safety hazard, they could result in a significant land use compatibility impact by interfering with
sleep in nearby residential uses. Noise fi:om heating and ventilation equipment associated with
the Police Headquarters could cause noise levels on adjacent residential property to exceed
desired levels. Operational noise (e.g. police sirens and prisoner loading/unloading) could
intelTUpt sleep in nearby residents. Construction of the Police Headquarters at the Friendship
Park site would have a significant impact on recreation opportunities by eliminating an existing
park. Excavation at the Civic Center Complex and any of the four alternative sites for the Police
Headquarters would impact geologic formations with a moderate to hígh potential to yield
significant fossils. All other potential environmental affects would not be significant.
3
E/-3
Traffic
Impact: The increase in traffic associated with the remodeling and expansion of the Civic
Center Complex and construction of a new Police Headquarters would increase the local traffic
- '(olumes by an estnnated 406 automobile tnps In the AM peak hour ~lC volumes and 530 tnps
in the PM peak: hour. ' .-.,.-- . ---
~le the additional project traffic. would not sil!!lÏfigu:¡tlxjooP¡¡ci-Ü¡ eve! of serv~ce at an ~
the intersections in the vicinity of ~..Q.~~qJKQj~lQ.~d.~~_~pr~.=ments would e
- necessary ShOU1<l eIther the Fnenaship Park or Corporation Yard sites be selectea'föfthe""PõIiëe
H ead'q uarte 'S. S eI e ct! 0 ìîcl'tlîëCõrpóñi1iõñ'"Yì!r"Qšì"të"; auld re q uh~' ~dditi õñã,( right;;¡- ~y 'ã;"d -a-""
new traffic signal to accommodate future traffic. Selection of the Friendship Park site would
require widening of Davidson Street to allow two-way traffic between Fourth Avenue and the
entrance driveway.
Mitigation: Traffic impacts associated with the proposed project would be reduced to below a
level of significance by the application of the fol1owing mitigation measures.
Mitigation Measure 1: Should the Friendship Park site be selected for the Police Headquarters,
the fol1owing roadway improvements shal1 be incorporated into the plans:
. Improve Davidson Street between Fourth Avenue and the entrance to the new facility to
provide for two-way traffic; and
. Install barriers at the entrance to the facility on Davidson Street to discourage Police
Headquarters traffic from entering the neighborhood to the north.
Mitigation Measure 2: Should the Corporation Yard site be selected for the Police
Headquarters, the fol1owing roadway improvements shal1 be incorporated in the plans:
. Provide, as necessary, additional right of way along project frontage on Woodlawn
Avenue to accommodate Class I Col1ector;
. Install traffic signal at F Street and Woodland Avenue; and
. Obtain an additional five feet of right of way along the north side of F Street adjacent to
the site.
Noise
Impact: Exterior heating and ventilation equipment associated with the relocated Police
Headquarters or Civic Center Complex remodeling and expansion could generate noise levels
which would cause the noise levels in adjacent residential areas to exceed the standards
established in City's Noise Ordinance.
Mitigation: Implementation of the fol1owing mitigation measures would reduce potential
heating and ventilation equipment noise to below a level of significance:
4
£/-<1
Mitigation Measure 3: Prior to issuance of a building permit for the Police Headquarters or
Civic Center Complex, a noise study shall be completed by a qualified acoustician to
demonstrate that the hearing and ventilation equipment has been sufficiently screened to insure
that noise levels at the adjacent residential property lines do not exceed standards set forth in
Table III of the City's Noise Ordinance.
Land Use CompatibilitY
Impact: Light and noise associated with the proposed Police Headquarters could significantly
impact nearby residential uses; particularly during night and early morning hours. Spill light and
glare from outdoor light fixtures including parking lot and security lighting could disrupt sleep
within adjacent residential units. Similarly, noise from police sirens, heating and ventilation
equipment, and prisoner delivery/pick up could disrupt sleep as well as other residential activities
such as television-watching and reading.
Construction noise could also impact nearby residents should the hours of operation extend into
the late night or early morning hours.
Mitigation: Land use compatibility impacts would be reduced to below a level of significance
through implementation of the following measures:
Mitigation Measure 4: The operations of the Police Headquarters shall be conditioned to
require the following:
. Police responding to emergency calls from the Police Headquarters shall not operate
sirens until they reach a major thoroughfare (e.g. Fourth A venue or F Street);
. Prisoners shall be loaded or unloaded in the underground parking garage;
. Servicing of vehicles including testing sirens shall be prohibited; and
. Outdoor public address systems shall be prohibited,
Mitigation Measure 5: Prior to issuance of a building permit for the Police Headquarters, the
City shall develop a "Good Neighbor Policy". 11ùs Policy shall include operational guidelines
and associated educational program for police personnel intended to minimize potential conflicts
with sUITounding neighborhoods (e.g. screeching tire noise and radio noise from unattended
police vehicles). In preparing this Policy, the City shall seek input from the surrounding
neighborhood.
Mitigation Measure 6: Construction shall be limited to the hours between 7 a.m. and 7 p.m. on
weekdays, and 8 a.m. and 5 p.m. on Saturdays. No construction shall occur on Sundays.
Mitigation Measure 7: All outdoor light fixtures would be equipped with shields to avoid
substantial spill light and/or glare onto adjacent residential areas.
5
p /- s-
Paleontolol!Y
Impact: Excavation within the Civic Center Complex or any of the four Police Headquarters
sites could encroach into geologic fonnations containing important fossils.
- Mitigation: Implementation of the following measure would reduce potential paleontological
impacts to below a level of significance:
Mitigaiion Measure 8: A qualified paleontologist shall monitor major excavation activities to
detennine if any important fossils could be adversely impacted. If important fossils could be
impacted, the paleontologists shall devise and implement an appropriate salvage program.
Recreation
Impact: Construction of the Police Headquarters on the Friendship Park site would result in the
loss of 3.5 acres of passive recreation area in the City's core. This would have a significant
impact on recreation opportunities in the area.
Mitigation: The loss of recreation would be reduced to below a level of significance through
implementation of the following mitigation measure:
Mitigation Measure 9: Prior to issuance of a grading permit for a Police Headquarters on the
Friendship Park site, the City shall identify a replacement site from Friendship Park within the
same vicinity, and approve a plan which would create passive recreation opportunities within
three years of the date the grading permit is issued.
6
£/-C:,
D. CONSULT AnON
1. City ofChula Vista
Marilyn Ponseggi, Planning Division
Benjamin GuelTero, Community Development
Ralph Leyva, Engineering Division
Dan Hardman., Police Department
Elizabeth Hull, City Attorney's Office
Applicant's Agent
Debra De Pratti, Highland Partnership
Dave Nielson, MNA Consulting
Traffic Consultant
Dan Marum, BRW
Geology Consultant
Clifford Craft, LawGibb Group
Gregory Rzonca, Lav..Gibb GrouP.
Noise Consultant
Charles Terry, Douglas Eilar & Associates
2. Documents
City of Chula Vista General Plan and ErR (1999)
Title 19, Chula Vista Municipal Code
Engineering Geologic Reconnaissance for Southeast Comer of F Street and 4th Avenue
(LawGibb Group, 2000)
Engineering Geologic Reconnaissance for Southwest. Comer ofF Street and 4th Avenue
(LawGibb Group, 2000)
Engineering Geologic Reconnaissance for Corporation Yard (LawGibb Group, 2000)
Engineering Geologic Reconnaissance for SoutheaSt Comer of Davidson Street and 4th
Avenue (LawGibb Group, 2000)
Traffic Study/Alternative Site Analysis of Civic Center Master Plan and Police
Headquarters Relocation (BRW, December 8,2000)
Noise Impact Analysis of Retail Block Site (Douglas Eilar & Associates, November,
2000)
Noise Impact Analysis of Mercy Site (Douglas Eilar & Associates, November, 2000)
Noise Impact Analysis of Friendship Park Site (Douglas Eilar & Associates, November,
2000)
7
E/- 7
E. DETERMINATION
On the basis of the Initial Study prepared in accordance with California Environmental Quality
Act (CEQA) and associated Guidelines, and the City of Chula Vista's Environmental Review
Procedures, the City of Chula Vista concludes that the proposed remodeling and exl'ansion of the
Civic Center Complex and relocation of the Police Headquarters would not have a significant
impact on the environment provided the ITÚtigation measures described in this Mitigated
Negative Declaration area implemented.
~~.-- (L-R.OO
Date
Community Development
8
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ENVIRONMENTAL CHECKLIST
Project Title: Chula Vista Civic Center Master Plan and Police
Headquarters Relocation
Case No.: IS-O 1-17
Lead Agency Name and Address: City ofChula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Contact Person and Phone Number: Benjamin Guexrero
City ofChula Vista
(619)476-5311
Date: December 8, 2000
I. EVALUATION OF ENVIRONMENTAL IMPACTS
TIris section evaluates the potential environmental impacts of the proposed project using the
environmental checklist incorporated from the CEQA Guidelines as amended in January I, 1999.
A "No Impact" answer is given when the information sources show that the impact does not
apply to the proposed project. A "Less than Significant Impact" is given when infonnation
sources indicate that impacts or changes in the environment would occur, but those impacts are
below the threshold of significance. "Potentially Significant Impact" is indicated if there is
substantial evidence that an effect may be significant. "Potentially Significant Unless Mitigated
Incorporated" applies where the incorporation of mitigation measures.has reduced an effect iTom
"Potentially Significant Impact" to a "Less than Significant Impact."
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
1. AESTIŒTICS - Would the project
a) Have a substantial adverse effect on a 0 0 ~ D
scenic vista?
b) Substantially damage scenic resources 0 0 0 ~
including, but not limited to, trees, rock
outcroppings, and historic buildings within
a state scenic highway?
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Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
c) Substrntially degrade the existing visual D 0 D cg]
character or quality of the site and its
surroundings?
d) Create a new source of substrntial light or D D ~ D
glare which would adversely affect day or
nighttime views in the area?
Explanation: The expansion and remodeling of the existing Civic Center will not have a
significant impact on aesthetics since the site is not located in the viewshed of an identified scenic
route, vista or view. Because the use already exits on~site, the addition of 15,000 square feet to the
existing Civic Center will not significantly impact views of SUlTOlUlding properties.
None of the four alternative locations for the police headquarters is located within the viewshed of a
scenic route, vista or view. However, development of a new police headquarters at any of the four
alternative locations may result in a less than significant impact to light and glare due to a possible
intensification of land uses beyond what currently exists. While three of the four alternative
locations (Mercy, Conunercial and Corporate Yard) are currently developed, the construction of the
police headquarters would alter existing land uses which might be perceived by surrounding uses as
a new source of light and glare. However, the impact would be reduced to a less than significant
level by incorporating shielding of exterior light and screening into the building design.
In addition to the potential increase in light and glare, development of a Police Headquarters at
the Friendship Park site would also change the visual character of the area by converting the site
from landscaped open space to a developed condition. While the loss of the open space would
adversely affect the visual character, the impact would not reach a level of significance due to
the overall urbanized character of the surrounding area.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
2. AGRICULTURE RESOURCES - In detennining
whether impacts to agricultural resources are
significant environmental effects, lead agencies
may refer to the California Agricultural Model
(1997) prepared by the California Dept. of
Conservation as an optional model to 1 Se in
assessing impacts on agriculture and fannland.
Would the project:
a) Convert Prime Farmland, Unique Farmland, or D D 0 ~
Fannland of Statewide Importance (Farmland),
as shown on the maps prepared pursuant to the
2
E/-/?>
PotentiaJly
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
Farmland Mapping and Monitoring Program of
the California Resources Agency, to non-
agricultural use?
b) Conflict with existing zoning for agrièultural D D D k8J
use, or a Williamson Act contract?
c) Involve other changes in the existing D 0 D ~
environment which, due to their location or
nature, could result in conversion of Farmland,
to non-agricultural use?
Explanation: The project site and alternative locations for the Police Headquarters would not
result in impacts to agricultural resources. The sites are fully developed and no agricultural
activity currently takes place on-site.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Suppotting Infonnation Impact Incorporated Impact Impact
3. AIR QUALITY - Where available, the significance
criteria established by the applicable air quality
management or air pollution control district may be
relied upon to make the following determinations.
Would the project:
a) Conflict with or obstruct implementation of the 0 0 ~ 0
applicable air quality plan?
b) Violate any air quality standard or contribute 0 0 ~ 0
substantially to an existing or projected air
quality violation?
c) Result in a cumulatively considerable net 0 0 ~ 0
increase of any criteria pollutant for which the
project region is non-attainment under an
applicable federal or state ambient air quality
standard (including releasing emissions which
exceed quantitative thresholds for ozone
precursors)?
d) Expose sensitive receptors to substantial 0 0 0 ~
pollutant concentrations?
e) Create objectionable odors affecting a D D D k8J
substantial number of people?
3
E/ -/)
Explanation: The expansion and remodeling of the Civic Center and development at any of the
alternative locations for the Police Headquarters would not result in impacts to air quality since
the number of auto trips for both the Civic Center expansion and development of a new Police
Headquarters at any of the locations would not substantially increase from the current number of
auto trips at the existing Civic Center, Police Headquarters and other existing land uses.
There would be no substantial stationary emissions, no creation of objectionable ödors and no
alteration which might result in climate change. Since there would be no significant increase in
emissions considered to be hannful to air quality, there would no impacts to adjacent users.
The parking structures would be adequately ventilated to avoid air quality impacts to people
using .the parking structure.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
4. BIOLOGICAL RESOURCES - Would the project:
a) Have a substantial adverse effect, either D D D ~
directly or through habitat modifications, on
any species identified as a candidate, sensitive,
or special status species in local or regional
plans, policies, or regulations, or by the
California Department of Fish and Game or
U.S. Fish and Wildlife Service?
b) Have a substantial adverse effect on any D D 0 ~
riparian habitat or other sensitive natural
community identified in local or regional plans,
policies, and regulations or by the California
Department of Fish and Game or US Fish and
Wildlife Service?
c) Have a substantial adverse effect on federally 0 0 0 ~
protected wetlands as defined by Section 404
of the Clean Water Act (including, but not
limited to, marsh, vernal pool, <;oastal, etc.)
through direct removal, filling, hydrological
interruption, or other means?
d) Interfere substantially with the movement of 0 0 0 ~
any native resident or migratory fish or wildlife
species or with established native resident or
migratory wildlife corridors, or impede the use
of native wildlife nursery sites?
e) Conflict with any local policies or ordinances D 0 0 ~
protecting biological resources, such as a tree
preservation policy or ordinance?
4
E/-/Y
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
t) Conflict with the provisions of an adopted 0 0 0 ~
Habitat Conservation Plan, Natural Community
Conservation Plan, or other approved local,
regional, or state habitat conservation plan?
Explanation: The sites are devoid of native or sensitive natural vegetation. They are currently
developed with a variety of urban land uses including office buildings, paved surfaces and
landscaped areas. There are no endangered, sensitive species, habitats or wildlife migration
corridors on the project site or at any of the alternative locations for the Police Headquarters.
Therefore, the project would result in no impacts to biological resources.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
5. CULTURAL RESOURCES - Would the project:
a) Cause a substantial adverse change in the 0 0 0 ~
significance of a historical resource as defined
in § 15064.5?
b) Cause a substantial adverse change in the 0 0 0 ~
significance of an archaeological resource
pursuant to § 15064.5?
c) Directly or indirectly destroy a unique 0 C8J D D
paleontological resource or site or unique
geologic feature?
d) Disturb any human remains, including those 0 0 0 [g]
interred outside offormal cemeteries?
Explanation: The project site and alternative locations for the Police Headquarters will not
result in impacts to archaeological resources because there are no identified resources on-site and
the sites are already developed. None of the buildings which could be demolished to
accommodate the Police Headquarters are considered historic.
The geologic formation underlying the Civic Center Complex as well as all four of the Police
Headquarters alternative sites has a moderate to high potential for containing significant fossils.
Thus, excavation could impact fossil-bearing material. A qualified paleontologist shall monitor
the excavation process. If significant fossils are encountered, the monitor shall undertake a
salvage plan, as necessary, to recover any significant fossils.
5
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Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
6. GEOLOGY AND SOILS - Would the project:
a) Expose people or structures to potential
substantial adverse effects, including the risk of
loss, injury, or death involving:
i) Rupture of a known earthquake fault, as D D [g] D
delineated on the most recent Alquist-
Priolo Earthquake Fault Zoning Map
issued by the State Geologist for the area or
based on other substantial evidence of a
known fault? Refer to Division of Mines
and Geology Special Publication 42.
ii) Strong seismic ground shaking? D D [g] D
iii) Seismic-related ground failure, including D D [g] D
liquefaction?
iv) Landslides? D D D ~
b) Result in substantial soil erosion or the loss of D D [g] D
topsoil?
c) Be located on a geologic unit or soil that is D D [g] D
unstable as a result of the project, and
potentially result in on or off site landslide,
lateral spreading, subsidence, liquefaction or
collapse?
d) Be located on expansive soil, as defined in 0 0 [g] D
Table 18-I-B of the Unifonn Building Code
(1994), creating substantial risks to life or
property?
e) Have soils incapable of adequately supporting 0 0 D ~
the use of septic tanks or alternative wastewater
disposal systems where sewers are not
available for the disposal of wastewater?
Explanation: There will be no changes in the existing topography or in any unique geologic or
physical features as a result of the Civic Center expansion and remodeling or development at any
of the possible Police Headquarters alternative locations. The project site and alternative
locations are all currently improved with existing buildings, asphalt parking and landscaped
areas. The project site and the four alternative locations for the Police Headquarters will require
grading and will result in minimal disruptions, displacements compaction or uncovering of soils.
6
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The project site and the four alternative locations for the Police Headquarters are located in a
region where active faulting and seismically-induced ground shaking is possible. However,
these impacts are considered less than significant due to the implementation of the requirements
of the State of California and City of Chula Vista regarding earthquake-safe buildings.
Engineering geologic reconnaissances were conducted for each of the four alternative locations
for the Police Headquarters (LawGibb Group, 2000). While the geologic reC"onnaÏssances
indicated no geologic or soils conditions which would pose a significant risk to development,
appropriate mitigation measures will be incorporated to reduce potential impacts to a less than
significant level. Both a comprehensive geotechnical investigation and a Phase I Environmental
Site Assessment will be required as part of the City of Chula Vista stàndard requirements for
approval of a grading pennit for the site selected for the new Police Headquarters.
Implementation of the requirements of both reports would reduce impacts to a less than
significant level.
Possible increases in the wind or water erosion of soils are less than significant due to the
minimal amount of grading involved and through the implementation of best management
practices (BMP) such as desiltation basins, sandbags and other erosion control methods which
are required by the City of Chula Vista as part of the approval process for permits.
Implementation of uniform building code (DBe) requirements will avoid the potential exposure
of people or property to geologic hazards at the proposed project site and at all of the alternative
locations for the Police Headquarters.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
7. HAZARDS AND HAZARDOUS MA TERlALS -
Would the project:
a) Create a significant hazard to the public or the D D D ~
environment through the routine transport., use
or disposal of hazardous materials?
b) Create a significant hazard to the public or the D D D ~
environment through reasonably foreseeable
upset and accident conditions involving the
release of hazardous materials into the
environment?
c) Emit hazardous emissions or handle hazardous D D D ~
or acutely hazardous materials, substances, or
waste within one-quarter mile of an existing or
proposed school?
d) Be located on a site which is included on a list D D D ~
of hazardous materials sites compiled pursuant
to Government Code § 65962.5 and, as a result,
7
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Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
would it create a significant hazard to the
public or the environment?
e) For a project located within an airport land use 0 0 0 C8J
plan or, where such a plan has not been
adopted, within two miles of a public airport or
public use airport, would the project result in a
safety hazard for people residing or working in
the project area?
t) For a project within the vicinity of a private 0 0 0 C8J
airstrip, would the project result in a safety
hazard for people residing or working in the
project area?
g) Impair implementation of or physically 0 0 C8J 0
interfere with an adopted emergency response
plan or emergency evacuation plan?
h) Expose people or structures to a significant risk 0 D D C8J
of loss, injury or death involving wildland fires,
including where wildIands are adjacent to
urbanized areas or where residences are
intennixed with wildlands?
Explanation: No impacts from hazards or hazardous materials would result ITom
implementation of the expansion of the Civic Center or :fi:om development at any of the
alternative locations for the Police Headquarters. The project site and alternative locations are
not located in the vicinity of safety hazards and there will be no increase in the use and storage of
hazardous materials beyond that which occurs currently. No hazardous emissions would result
ITom the proposed development.
While Fourth Avenue is identified as one of the Evacuation Routes in the City's General Plan,
the project will not result in impacts since there will not be a significant increase in the overall
population in the vicinity.
The project site is not located within two miles of a public or private airport.
As no wildland areas exist in the project area, no risk of wildland fires exists.
8
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Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact IncoqJOrnted Impact Impact
8. HYDROLOGY AND WATER QUALITY -
Would the project:
a) Violate any water quality standards or waste 0 0 ~ 0
discharge requirements?
b) Substantially deplete groundwater supplies or 0 0 0 [g]
interfere substantially with groundwater
recharge such that there would be a net deficit
in aquifer volume or a lowering of the local
groundwater table level (e.g., the production
rate of pre-existing nearby wells would drop to
a level which would not support existing land
uses or planned uses for which penn its have
been granted)?
c) Substantially alter the existing drainage pattern 0 0 [g] 0
of the site or area, including through the
alteration of the course of a stream or river, in a
manner which would result in substantial
erosion or siltation on or off site?
d) Substantially alter the existing drainage pattern 0 0 [g] 0
of the site or area, including through the
alteration of the course of a stream or river, or
substantially increase the rate or amount of
surface runoff in a manner which would result
in flooding on or off site?
e) Create or contribute runoff water which would 0 0 [g] 0
exceed the capacity of existing or planned
stonnwater drainage systems or provide
substantial additional sources of polluted
runoff?
f) Otherwise substantially degrade water quality? 0 0 [g] 0
g) Place housing within a IOO-year flood hazard 0 0 0 [g]
area as mapped on a federal Flood Hazard
Boundary or Flood Insurance Rate Map or
other flood hazard delineation map?
h) Place within a 1O00year flood hazard area 0 0 0 [g]
structures which would impede or redirect
flood flows?
9
£/-;;;3
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
i) Expose people or structures to a significant risk D D D ~
of Joss, injury or death involving flooding,
including flooding as a result of the failure of a
levee or dam?
j) Inundation by seiche, tsunami, or mudflow? D D D ~
Explanation: Expansion of the Civic Center and development at any of the four alternative
locations for the Police Headquarters would not result in significant impacts to hydrology or
water quality. No use of groundwater would occur as the development would be connected to
the City water supply.
With the exception of the Friendship Park site, all of the project sites are already developed, no
significant increase in impermeable surface area would occur. Consequently, no substantial
increase in surface runoff would occur. Similarly, the proposed land uses would not be
significantly different 1Ì'om existing uses which would mean that the quality of surface runoff
would not diminish significantly. Implementation of CUlTent practices to control water runoff
contained in the City's Grading and Storm Water Management and Discharge Control
Ordinances would reduce impacts potential short-tenn water quality impacts to a less than
significant level. Runoff would be transported to existing storm drains serving the development
areas. Since the volume of runoff will not increase substantially, the existing stonn drain system
will continue to accommodate runoff in the area.
Although development of Friendship Park would convert the mostly permeable surfàce area to
impermeable surface area, the increase in runoff would not be sufficient to overtax the existing
stonn drain system serving the site. Standard drainage improvements incorporated into a future
Police Headquarters would be sufficient to avoid hydrology impacts. In addition, the small size
of the Police Headquarters building area in proportion to the overall drainage basin would
preclude significant water quality impacts 1Ì'om any urban runoff pollutants generated 1Ì'om the
site. Furthermore, compliance with local and state requirements for storage of hazardous
materials would avoid significant water quality impacts 1Ì'om the use of any such materials
associated with operation of the Police Headquarters.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
9. LAND USE AND PLANNING - Would the
project:
a) Physically divide an established community? D ~ D D
10
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PotentIally
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
b) Conflict with any applicable land use plan, 0 0 [g] 0
policy, or regulation or an agency with
jurisdiction over the project (including, but not
limited to the general plan, specific plan, local
coastal program, or zoning ordinance) adopted
for the purpose of avoiding or mitigating an
environmental effect?
c) Conflict with any applicable habitat 0 0 0 r3J
conservation plan or natural community
conservation plan?
Explanation: The proposed project would not physically divide the land uses which cUITently
exist within the general vicinity of the Civic Center Complex and Police Headquarters alternative
sites. All of the affected areas are already developed with non-residential uses. No streets would
be closed as a result of the proposed project. Although barriers would be constructed on
Davidson Street in the event the Friendship Park site is selected for the Police Headquarters,
these barriers would only discourage Police Headquarters traffic fi:om entering the adjacent
residential area. It would not constrain residential access.
While the proposed project would not physically divide the surrounding community, the Police
Headquarters would potentially impact surrounding residential areas due to lighting and noise
associated with the proposed use. As discussed in Sections 1 and 11 of this Environmental
Checklist, the lighting and noise associated with the Police Headquarters would not create
significant health and safety impacts. However, these factors could result in significant land use
compatibility conflicts with adjacent residential uses by creating nuisance-level impacts. Land
use compatibility impacts could be significant dUring late night and early morning hours when
nearby residents are trying to sleep.
Excess light spill and glare into slèeping quarters could disrupt sleep activities. Potential light
sources include security lighting on buildings and in parking areas. All outdoor lighting
associated with the Police Headquarters would be fitted with shields and/or positioned to
minimize spill light and glare on adjacent residential properties.
As discussed in Section II of this Enviromnental Checklist, police car sirens and
loading/unloading of prisoners could create a nuisance for nearby residents which could disrupt
sleep patterns. Although the potential exists for police sirens to affect adjacent residents, the
impacts would not represent a significant land use compatibility impact for several reasons. One
of the primary reasons is the limitation to be imposed on police cars responding to emergencies
fi:om the proposed Police Headquarters. Responding units would be prohibited fi:om turning on
their sirens until they reach a major thoroughfare (e.g. Fourth Avenue or F Street). Police sirens
are already being used on these streets. Thus, this limitation would assure that disruption fi:om
sirens is no greater than occurs from the existing Police Headquarters which is located in the
same general vicinity as three of the four alternative sites. The Corporation Yard site, although
II
E/-';;¡S-
not near the existing Police Headquarters, is already located near major noise sources including
Interstate 5 and the San Diego Trolley. In addition, relatively few emergency responses originate
at the Police Headquarters (Dan Hardman, Chura Vista Police Department). Patrol cars out on
the streets are usually the primary units responding to emergency situations.
Further factors restricting potential land use compatibility impacts from Police Headquarters
noise include prohibitions against: (I) outdoor public address systems, (2) vehicle-servicing and
repair, and (3) siren testing. In addition, prisoners are proposed to be loaded and unloaded
within the underground parking areas to minimize adverse effects of unusually vocal individuals.
The Civic Center and the alternative locations for the Police Headquarters are located within the
City ofChula Vista's "Urban Core" and the major facilities existing or planned for this area are
designated in the Central Chura Vista Area Plan. This area contains the greatest diversity of
urban facilities in the City in a generally low to medium density urban development. The City of
Chura Vista's General Plan states that this area "will expand both the concentration and diversity
of facilities" and will continue to reinforce its role as the urban core of the city. The project is
consistent with adopted plans and ordinances. It will implement the goals of the City of Chula
Vista General Plan as well as the Central Chura Vista Area Plan.
Lastly, as none of the properties involved in the proposed project exhibit any natural vegetation
or support wildlife species, the project would not have a significant impact on regional biological
resource planning efforts.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
10. MINERAL RESOURCES - Would the project:
a) Result in the loss or availability of a known D D 0 k8J
mineral resource that would be of value to the
region and the residents of the state?
b) Result in the loss of availability of a locally D D 0 [2J
important mineral resource recovery site
delineated on a local general plan, specific plan
or other land use plan?
Explanation: No impacts to mineral resources will result fÌ:om project implementation. There
are no known mineral resources located beneath the Civic Center Complex or any of the
alternative locations for the Police Headquarters.
12
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Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
11. NOISE - Would the project result in:
a) Exposure of persons to or generation of noise 0 ~ 0 0
levels in excess of standards established in the
local general plan or noise ordinance, or
applicable standards or other agencies?
b) Exposure of persons to or generation of 0 0 [g] D
excessive groundborne vibration or
groundborne noise levels?
c) A substantial pennanent increase in ambient D [Z] 0 D
noise levels in the project vicinity above levels
existing without the project?
d) A substantial temporary or periodic increase in D D ~ D
ambient noise levels in the project vicinity
above levels existing without the project?
e) For a project located within an airport land use D 0 0 [Z]
plan or, where such a plan has not been
adopted, within two miles of a public airport or
public use airport, would the project expose
people residing or working in the project area
to excessive noise levels?
t) For a project within the vicinity of a private 0 0 0 ~
airstrip, would the project expose people
residing or working in the project area to
excessive noise levels?
Explanation: Construction of the Police Headquarters would introduce new noise sources into
the areas which surround the four alternative sites. Increases in ambient noise levels would be of
particular importance to noise-sensitive activities such as residential, hospitals or other uses
which generally require low noise levels. As discussed earlier, both single- and multi-family
residential uses lie adjacent to some portion of all of the Police Headquarters alternative sites.
Potential noise sources associated with the Police Headquarters would include police car sirens,
exterior heating and ventilation equipment, loading/unloading prisoners, and general parking lot
activity (e.g. car engines and conversation). Acoustical studies prepared for the alternative sites
prepared by Douglas Eilar & Associates concluded that, with the possible exception of heating
and ventilation equipment, noise from the Police Headquarters would not create a significant
health and safety hazard. With the exception of heating and ventilation equipment., noise sources
would be sporadic and not of sufficient ftequency or volume to exceed acceptable noise levels.
As discussed in Section 9, police sirens would not be activated until the vehicle reaches a major
street and emergency responses do not usually originate from the Police Headquarters. In
13
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addition, CUITent ambient noise levels on all Police Headquarters alternative sites, primarily
related to traffic noise, are already higher than the levels normally acceptable for residential
areas. Measurements taken by Douglas Eilar & Associates identified ambient Community Noise
Equivalent Levels (CNEL) as high as 65 dB(A) in nearby residential areas.
With respect to heating and ventilation equipment, the project would be conditioned to require
that acoustical screening be installed around all exterior heating and ventilation equipment to
assure that noise generated by this equipment would not exceed the maximum noise levels
established in Table ill of the City of Chula Vista's Noise Ordinance. Under this ordinance,
noise generators must not cause noise levels at the property line in adjacent residential areas,
with the exception of multi-family development, to exceed 45 dB between the hours of 10 p.m.
and 7 a.In. on weekdays, and 10 p.m. and 8 a.m. on weekends; at all other times of the day, noise
generators shall not cause noise levels in residential areas to exceed 55 dB. For multi-family, the
noise limits are 50 dB at night and 60 dB during the day.
While noise associated with the Police Headquarters would not result in a significant health and
safety hazard, periodic noise related to police car sirens and uuloadinglloading of vocal prisoners
could create a land use compatibility impact on adjacent residential uses by disturbing sleep
activities. This concern is discussed in more detail in Section 9 of this Environmental Checklist.
Remodeling and expansion of the Civic Center Complex would not have a significant impact on
sUITounding land uses. The proposed improvements would not introduce any new noise sources
nor would it increase noise generated by existing uses. Any new heating and ventilation
equipment would be screened to assure that noise levels meet Table ill of the City's Noise
Ordinance. Relocation of the Police Headquarters would, in fact, eliminate an existing noise
source on the site.
Construction noise could have a significant impact on residential areas located adjacent to the
Civic Center Complex as well as the Police Headquarters sites. Construction equipment noise
would be expected to periodically exceed noise levels desired in residential areas. However, the
short-term nature of construction noise and the limitations to be imposed by the City on the hours
when construction can take place will reduce construction noise impacts to below a level of
significance. Construction shall be limited to the hours of 7 a.In. and 7 p.m. between Monday
and Friday and 8 a.In. to 5 p.m. on Saturday. No construction would be allowed on Sunday.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
12. POPULATION AND HOUSING- Would the
project:
a) Induce substantial population growth in an 0 0 0 ~
area either directly (for example, by
proposing new homes and businesses) or
indirectly (for example, through extension
of roads or other infrastructure)?
14
£:/-;;11
Potentially
Significant
potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
b) Displace substantial numbers of existing D D 0 [Z]
housing, necessitating the construction of
replacement housing elsewhere?
c) Displace substantial numbers of people, D D 0 [Z]
necessitating the construction of replacement
housing elsewhere
Explanation: There will be no impacts to population and housing resulting from the project
The project will not cause the City to cumulatively exceed the state or regional projections nor
would it induce substantial growth. No housing, including affordable units, would be lost or
created as a result of the proposed expansion of the Civic Center or as a result of construction of
a Police Headquarters at any of the alternative locations. The demand for housing would not
change significantly since the uses proposed exist already and no significant changes in staffing
levels are expected. Therefore, the demand for housing would remain the same.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
]3. PUBLIC SERVICES:
a) Would the project result in substantial adverse
physical impacts associated with the provision
of new or physically altered governmental
facilities, need for new or physically altered
governmental facilities, the construction of
which cOuld cause significant environmental
impacts, in order to maintain acceptable Service
ratios, response times or other peñonnance
objectives for any of the public services:
Fire protection? D D [Z] 0
Police protection? D D 0 cg]
Schools? D D 0 [Z]
Parks? D ~ 0 0
Other public facilities? D D [Z] 0
15
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Explanation: The expansion of the Civic Center and. development at any of the alternative
locations for the Police Headquarters would not generally result in significant changes to service
ratios, response times or perfonnance objectives. Fire protection, schools and other public
facilities would remain unchanged as a result of implementation of the project and development
of a new Police Headquarters. Construction of a new Police Headquarters could result in
improvement to response times for police protection due to improved efficiency.
Development of the Police Headquarters at the Friendship Park location would result in
potentially significant impacts to parks due to the loss of park areas. The loss of park area would
require dedication of additional park land in the area.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Information Impact Incorporated Impact Impact
14. RECREATION:
a) Would the project increase the use of existing 0 ~ 0 0
neighborhood and regional parks or other
recreational facilities such the substantial
physical deterioration of the facility would
occur or be accelerated?
b) Does the project include recreational facilities 0 0 0 ~
or require the construction or expansion of
recreational facilities which might have an
adverse physical effect on the environment?
Explanation: No impacts to recreation would result ITom the expansion of the Civic Center or
development at three of the four locations (Mercy, Corporate Yard and Commercial sites) for the
Police Headquarters since there would be no anticipated increase in population and therefore in
the use of existing parks.
Development of the Police Headquarters at the Friendship Park could result in potentially
significant impacts to other recreational facilities. The 3.5 acres of passive parkland would be
replaced with buildings which could result in users of Friendship Park shifting their activities to
other sites. While the expansion and remodeling of the Civic Center would result in some
additional passive recreational areas, the loss of Friendship Park would be a potentially
significant impact unless mitigation measures were incorporated to replace the loss of parkland.
16
F / -:3()
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
15.TRANSPORTATIONITRAFFIC - Would the
project:
a) Cause an increase in traffic which is substantial 0 D cg] 0
in relation to the existing traffic load and
capacity of the street system (Le., result in a
substantial increase in either the number of
vehicle trips, the volume to capacity ratio on
roads, or congestion at intersections)?
b) Exceed, either individually or cumulatively, a 0 cg] 0 0
level of service standard established by the
county congestion management agency for
designated roads or highways?
c) Result in a change in air traffic patterns, 0 0 0 [SJ
including either an increase in traffic levels or a
change in location that results in substantial
safety risks?
d) Substantially increase hazards due to a design D 0 cg] 0
feature (e.g., sharp curves or dangerous
intersections) or incompatible uses (e.g., farm
equipment?
e) Result in inadequate emergency access? D 0 0 cg]
f) Result in inadequate parking capacity? 0 0 cg] D
g) Conflict with adopted policies, plans, or 0 0 0 cg]
programs supporting alternative transportation
(e.g., bus turnouts, bicycle racks)?
Explanation: A traffic study was conducted by BRW to assess the impacts of the remodeling
and expansion of the Civic Center Complex, and relocatíon of the Police Headquarters. As the
morning and evening peak hour periods are the most critical times for local traffic circulation,
the traffic study focused on the project impacts during these time frames. Based on this study,
the redevelopment of the Civic Center Complex and relocation of the Police Headquarters would
add an estimated 406 automobile trips to the AM peak hour traffic volumes and 530 trips to the
PM peak: hour. It should be noted that this is a conservative estimate because it 1reats all of the
automobile trips related to the Police Headquarters as new trips even though the existing facility
is generating some number of trips already. In addition, the traffic volume estimate does not
back out trips which are being generated from the current uses which would be eliminated on
alternative sites by construction of the Police Headq:wuters. Thus, the estimated traffic
generation is likely higher than may actually occur.
17
£/-31
When the additional trips from the Civic Center Complex and any of the three Police
Headquarters sites within the general proximity of the Civic Center Complex were added to the
ten local intersections which were evaluated in the traffic study, it was detennined that none of
the intersections would be significantly impacted by the increase related directly to the proposed
project. All of the intersections would continue to operate a level of service (LOS) of D or
better. Further, when traffic from three other approved but undeveloped projects in the area of
the Civic Center Complex (Southbay Regional Center Expansion, Scripps Memorial Hospital
Expansion and Gateway Project) was added to the increase in traffic from the proposed project,
the traffic study concluded that the combined increase would not have a significant impact on
any of the 10 intersections.
With respect to the Corporation Yard site, the addition of Police Headquarters traffic to
Woodlawn Avenue could cause the overall traffic volume on Woodlawn Avenue to exceed the
desired volume for its current configuration. Expansion of Woodland Avenue to a Class I
Collector roadway may be necessary between E and F Street. Additional right of way would
also be required on the north side of F Street adjacent to the site. A signal would likely be
required at Woodlawn Avenue and F Street.
With respect to air traffic patterns, the proposed projects would have no impact.
With the exception of the Friendslùp Park and Corporation Yard sites for the Police
Headquarters, the traffic analysis concluded that no specific roadway modifications were
necessary to accommodate the proposed uses. No new traffic signals are required on any of the
unsignalized intersections immediately adjacent to the Civic Center Complex or the three nearby
Police Headquarters alternative sites.
Should the Friendship Park site be selected, Davidson Street between Fourth Avenue and the
entrance to the parking structure would be redesigned to serve as a two-way street. Options to
allow two-way traffic include acquisition of additional right-of-way on the south curb of
Davidson Street, prohibition of parking on the south curb of Davidson Street and/or construction
of raised islands to facilitate turns at this location. In addition, traffic related to the Police
Headquarters would be directed toward Fourth Avenue through the use of signage or barriers to
reduce impact on the neighborhood.
As indicated earlier, selection of the Corporation Yard site could necessitate Woodlawn Avenue
to be upgraded to a Class I Collector which would require that additional right of way along the
project frontage to accommodate the wider roadway. An additional five feet of right of way
would also be required on the north side of F Street adjacent to the site. A traffic signal at the
intersection of Woodlawn Avenue and F Street would also be required.
Selection of the Corporation Yard site would be less desirable from a traffic perspective due to
the distance from the Civic Center Complex as well as the central part of the City. This
separation would result in longer trips and more vehicle miles traveled on City streets.
18
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Standard parking ratios established by the City will be achieved on, the Civic Center Complex
and each of the four Police Headquarters alternatives sites to assure adequate parking is
available.
potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
16. UTILITIES AND SERVICES SYSTEMS - Would
the project:
a) Exceed wastewater treatment requirements of 0 0 0 cg]
the applicable Regional Water Quality Control
Board?
b) Require or result in tbe construction of new 0 0 cg] 0
water or wastewater treatment facilities or
expansion of existing facilities, the
construction of which could cause significant
environmental effects?
c) Require or result in the construction of new 0 0 0 cg]
stonn water drainage facilities or expansion of
eJÒsting facilities, the constructio'n of which
could cause significant environmental effects?
d) Have sufficient water supplies available to 0 0 0 [S]
serve the project from existing entitlements and
resources, or are new or expanded entitlements
needed?
e) Result in a detennination by the wastewater 0 0 D cg]
treatment provider which serves or may serve
the project that it has adequate capacity to
serve the project's projected demand in
addition to the provider's existing
commitments?
1) Be served by a landfill with sufficient 0 0 [S] 0
pennitted capacity to accommodate the
project's solid waste disposal needs?
g) Comply with federal, state, and local statutes D 0 cg] D
and regulations related to solid waste? Explanation: There will be no significant impacts to utilities and service systems as a result of
the project. New service systems, or the substantial alteration of existing systems, would not be
required for the expansion and remodeling of the Civic Center and construction of a Police
Headquarters at one of the alternative locations. The sites are currently developed with urban
level land uses and receive water and sewer through existing lines. There is sufficient
supply/capacity available to serve the proposed project. However, one segment of the sewer
19
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system serving the project site would require upgrading as its entire service area is builtout.
More specifically, a portion of the sewer line west of Bay Boulevard at G Street will need to be
upgraded with a parallel line or expanded pipe diameter. TIùs upgrade would be undertaken by
the City as part of its Capital Improvements Program when required.
The amount of solid waste generated will not change significantly over that currently generated
and there is sufficient landfill capacity available.
Potentially
Significant
Potentially Unless Less Than
Significant Mitigation Significant No
Issues and Supporting Infonnation Impact Incorporated Impact Impact
17. MANDATORY FINDINGS OF SIGNIFICANCE:
a) Does the project have the potential to degrade D 0 0 cgJ
the quality of the environment, substantially
reduce the habitat of a fish or wildlife species,
cause a fish or wildlife population to drop
below self-sustaining levels, threaten to
eliminate a plant or animal community, reduce
the number or restrict the range of a rare or
endangered plant or animal or eliminate
important examples of the major periods of
California history or prehistory?
b) Does the project have impacts that are D ~ 0 0
individually limited, but cumulatively
considerable? ("Cumulatively considerable"
means that the incremental effects of a project
are considerable when viewed in connection
with the effects of past projects, the effects of
other current projects, and the effects of
probable future projects)?
c) Does the project have environmental effects D ~ 0 0
which will cause substantial adverse effects on
human beings, either directly or indirectly?
Explanation: The expansion and remodeling of the Civic Center and construction and operation
of a Police Headquarters at any of the four locations would not result in a significant impact to
the adopted long-term environmental goals of the City ofChula Vista's General Plan and other
adopted planning documents as those goals are related to biology and cultural resources. The
sites are currently developed with urban level uses and do not contain identified biological or
cultural resources. The expansion and remodeling of the Civic Center and construction and
operation of a Police Headquarters at any of the four locations would not result in a significant
impact to the adopted long-term environmental goals of the City of Chula Vista's General Plan
and other adopted planning documents. The project is infill development with urban level
services in place.
20
E/ -31
The proposed project, in combination with three pending projects, could have a significant
cumulative impact on traffic flow at the intersection of H Street and Fourth Avenue. However,
construction of an additional southbound left-turn land on H Street would restore this
intersection to an acceptable level of service.
Noise and light fÌ'om the proposed Police Headquarters could adversely impact adjacent
residential areas by interfering with sleep activities. However, light fixture shielding and
limitations on the use of police sirens would reduce these potential impacts on humans to below
a level of significance.
II. ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED
Based on this environmental checklist, the environmental factors checked below would be
potentially affected by this project.
0 Aesthetics 0 AgrictJtture Resources 0 Air Quality
0 Biological Resources IZI Cuttural Resoun:es 0 GeologylSoils
0 Hazards & Hazardous Materials 0 HydrologylWater Quality 1:8]. Land Use/Planning
0 Mineral Resources IZI Noise 0 PopulationIHousing
!ZI Public Services IZI Recreation !ZITransportationITraffiC
0 UliritieslService Systems IS! Mandatory Findings of Significance
ill. PROJECT REVISIONS OR MITIGATION MEASURES
The following project revisions or mitigation measures have been incorporated into the project
and will be implemented during the design, construction and/or operation of the project.
Mitigation Measure 1: Should the Friendship Park site be selected for the Police Headquarters,
the following roadway improvements shall be incorporated into the plans:
. Improve Davidson Street between Fourth Avenue and the entrance to the new facility to
provide for two-way traffic; and
. Install barriers at the entrance to the facility on Davidson Street to discourage Police
Headquarters traffic fÌ'om entering the neighborhood to the north.
Miiigation Measure 2: Should the Corporation Yard site be selected for the Police
Headquarters, the following roadway improvements shall be incorporated in the plans:
. Provide, as necessary, additional right of way along project fÌ'ontage on Woodlawn
Avenue to accommodate Class I Collector;
. Install traffic signal at F Street arid Woodland Avenue; and
. Obtain an additional five feet of right of way along the north side of F Street adjacent to
the site.
21
E / - 35
Mitigation Measure 3: Prior to issuance of a building permit for the Police Headquarters or
Civic Center Complex, a noise study shall be completed by a qualified acoustician to
demonstrate that the heating and ventilation equipment has been sufficiently screened to insure
that noise levels at the adjacent residential property lines do not exceed standards set forth in
Table III of the City's Noise Ordinance.
MiJigatÛJn Measure 4: The operations of the Police Headquarters shall be conditioned to
require the following:
. Police responding to emergency calls fÌ'om the Police Headquarters shall not operate
sirens until they reach a major thoroughfare (e.g. Fourth Avenue or F Street);
. Prisoners shall be loaded or unloaded in the underground parking garage;
. Servicing of vehicles including testing sirens shall be prohibited; and
. Outdoor public address systems shall be prohibited.
MitigatÛJn Measure 5: Prior to issuance of a building permit for the Police Headquarters, the
City shall develop a "Good Neighbor Policy". This Policy shall include operational guidelines
and associated educational program for police personnel intended to minimize potential conflicts
with SUITOunding neighborhoods (e.g. screeching tire noise and radio noise fÌ'om unattended
police vehicles). In preparing this Policy, the City shall seek input fÌ'om the surrounding
neighborhood.
Mitigation Measure 6: Construction shall be limited to the hours between 7 a.m. and 7 p.m. on
weekdays, and 8 a.m. and 5 p.rn. on Saturdays. No. construction shall occur on Sundays.
MitigatÛJn Measure 7: All outdoor light fixtures would be equipped with shields to avoid
substantial spill light and/or glare onto adjacent residential areas.
MitigatÛJn Measure 8: A qualified paleontologist shall monitor major excavation activities to
determine if any important fossils could be adversely impacted. If important fossils could be
impacted, the paleontologists shall devise and implement an appropriate salvage program.
MiJigation Measure 9: Prior to issuance of a grading permit for a Police Headquarters on the
Friendship Park site, the City shall identify a replacement site from Friendship Park within the
same vicinity, and approve a plan which would create passive recreation opportunities within
three years of the date the grading permit is issued.
22
E /-3~
.-
IV. DETERMINATION
On the basis of this initial evaluation:
0 I find that the proposed project COULD NOT have a significant effect on the environment,
and a NEGATIVE DECLARATION will be prepared.
~ I find that although the proposed project could have a significant effect on the environment,
there will not be a significant effect in this case because the mitigation measures described on an
attached sheet have been added to the project. A MITIGATED NEGATIVE DECLARA nON will
be prepared.
D I find that the proposed project MAY have a significant effect on the environment, and an
ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a
significant effect(s) on the environment, but at least one effect I) has been adequately analyzed in
an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation
measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially
significant impact" or "potentially significant unless mitigated." An ENVIRONMENTAL
IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed.
D I find that although the proposed project could have a significant effect on the environment,
there WILL NOT be a significant effect in this case because all potentially significant effects (a)
have been analyzed adequately in an earlier EIR pursuant to applicable standards and (b) have been
avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are
imposed upon the proposed project.
.J3~ 0
(-¿'U- CO
Date
Planning and Environmental Manager
Community Development
City ofChuia Vista
23
E /-37
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JOINT REDEVELOPMENT AGENCY / CITY COUNCIL
AGENDA STATEMENT
ITEM NO.: tJ
MEETING DATE: 07/10/01
ITEM TITLE: A. PUBLIC HEARING PURSUANT TO SECTION 33445
AND 33679 OF THE COMMUNITY REDEVELOPMENT LAW
RESPECTING USE OF REDEVELOPMENT AGENCY FUNDS FOR
THE ACQUISITION OF LAND FOR THE INSTALLATION AND
CONSTRUCTION OF A PUBLICLY OWNED FACILITY
B. JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA 1)
RATIFYING THE EXECUTION OF A PURCHASE AND SALE
AGREEMENT BETWEEN CITY OF CHULA VISTA
REDEVELOPMENT AGENCY AND CHULA VISTA CENTER, A
CALIFORNIA CORPORATION, FOR ACQUISITION OF
PROPERTY LOCATED AT 362-398 "F" STREET REQUIRED TO
CONSTRUCT THE CITY OF CHULA VISTA POLICE
HEADQUARTERS FACILITY; AND 2) AMENDING THE BUDGET
FOR THE REDEVELOPMENT AGENCY BY APPROPRIATING
$4,786,210 FROM THE PROCEEDS OF THE 2000 TAX
ALLOCATION BOND ISSUE IN THE MERGED PROJECT AREA
FOR THE REPAYMENT OF OUTSTANDING ADVANCES TO THE
BAYFRONT-TOWN CENTRE I PROJECT AREA, AND
APPROPRIATING THE SAME AMOUNT IN THE BAYFRONT-
TOWN CENTRE I PROJECT AREA TO THE POLICE FACILITY
CAPITAL PROJECT FOR PROPERTY ACQUISITION COSTS
C. JOINT RESOLUTION OF THE CITY COUNCIL AND THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA:
1) WAIVING THE COMPETITIVE CONSULTANT SELECTION
PROCESS; 2) AUTHORIZING A CONSULTANT CONTRACT
WITH PACIFIC RELOCATION CONSULTANTS FOR $60,000 TO
PROVIDE RELOCATION SERVICES FOR THE NEW
DOWNTOWN POLICE FACILITY; AND 3) AMENDING THE
BUDGET FOR THE REDEVELOPMENT AGENCY BY
APPROPRIATING $500,000 FROM THE PROCEEDS OF THE
2000 TAX ALLOCATION BOND ISSUE IN THE MERGED
PROJECT AREA FOR THE REPAYMENT OF OUTSTANDING
ADVANCES TO THE BAYFRONT-TOWN CENTRE I PROJECT
AREA, AND APPROPRIATING THE SAME AMOUNT IN THE
BAYFRONT-TOWN CENTRE I PROJECT AREA TO THE POLICE
FACILITY CAPITAL PROJECT FOR THE CONSULTANT
CONTRACT AND FOR TENANT RELOCATION COSTS.
4-(
PAGE 2, ITEM NO.: ~
MEETING DATE: 07 /10/01
SUBMITTED BY:
REVIEWED BY: CITY MANAGER \
4/5THS YOTE: YES 0 NOD
BACKGROUND
The Cify of Chula Vista has experienced significant growth over the post two decades and is
projected to reach build-out within the next 20 years. In order to ensure that the qualify and level
of service provided by the Police Department continues and improves it is necessary to construct a
new full-service Police Headquarters to support current and future needs of the Police force. The
current 50,000 square foot Police Facilify was built to support a population of approximately
115,000. The existing facilify is significantly undersized to serve today's population of
approximately 180,000, and cannot be expanded due to physical constraints and an inabilify to
meet current "Essential Facilify Code Standards". The recommended facilify size to serve the
build-out population is a Building of 140,566 square feet supported by 411 parking spaces. A
new Police Department is needed to accommodate the existing and future requirements of the
Police Department.
Highland Partnership, Inc. was hired by the Cify to prepare the Police Facilify Master Plan
including the program and conceptual design for the Police Headquarters. Highland conducted
an extensive site analysis, which culminated in the recommendation to locote the Police Facilify at
the commercial center site located ot 362-398 F Street across from the Cify Main Library. It is
believed that the commercial site best met the overall standards of law enforcement, and goals
for provision of consolidated government.
Staff has negotiated an acquisition price of $4,786,130 based on the Fair Market Value determined
by appraisals of both the real estate and the trade fixtures (FF&E), and is presenting the Purchase
and Sale Agreement executed by the Cify Manager for Council ratification. The Agreement provides
that the Council has retained full discretion to accept or reject the Purchase Agreement.
With selection of a site for development of the new Police Department facilify, staff is prepared to
begin the process of business relocation. Due to the specialized nature of business relocation and
the compressed time frame for this project, the competitive bid process has been deemed
impractical and staff recommends waiving of the process in this case and authorizing a contract for
relocation consultant services with Pacific Relocation Consultants (PRe) to begin the process of
business relocation.
The Council/Agency is being asked to amend the Redevelopment Agency budget for both the
appropriation of $4,786,130 for the property acquisition, and the appropriation of $500,000 for
the PRC Contract and tenant relocation costs, from the proceeds of the 2000 Tax Allocation Bond
Issue in the Merged Project Area for the repayment of outstanding advances to the Bayfront-T own
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PAGE 3, IIEM NO.: 4
MEETING DATE: 07/10/01
Centre I Project Area, and appropriating the same amount in the Bayfront-Town Centre I Project
Area.
Residents and businesses within a 500 foot radius of the Civic Center, Library and Commercial
Center property were noticed via mail and notice was published in the paper twice.
The construction of the new police headquorters at the commerciol site was considered within the
environmental document for fhe Civic Center and Police Headquarters Master Plans. Mitigated
Negative Declaration IS-01-017 was issued in accordance with CEQA and adopted by Council
in the previous ogenda item approving the Civic Center and Police Headquorters Master Plans.
RECOMMENDATION
A. Conduct the public hearing pursuant to Section 33679 of the Community Redevelopment
Law respecting use of Redevelopment Agency funds for the acquisition of land for the
acquisition of land for the installation and construction of a publicly owned facility.
B. Adopt the Joint City Council and Redevelopment Agency Resolution ratifying the executed
Purchase and Sale Agreement with Chula Vista Center, a California Partnership, for
acquisition of property located at 362-398 F Street for the City Police Headquarters and
amend the Redevelopment Agency Budget by appropriating $4,786,210 from the proceeds
of the 2000 Tax Allocation Bond Issue in the Merged Project Area for the repayment of
outstanding advances to the Bayfront-Town Centre I Project Area, and appropriating the
same amount in the Town Centre I Project Area to the Police Facility Capital Project for
property acquisition costs.
C. Approve Joint City Council and Redevelopment Agency Resolution waiving the competitive
consultant selection process, authorizing a consultant contract with Pacific Relocation
Consultants to Provide Relocation Consultant Services, and amending the budget for the
Redevelopment Agency by appropriating $500,000 from the proceeds of the 2000 Tax
Allocation Bond Issue in the Merged Project Area for the repayment of outstanding advances
to the Bayfront-Town Centre I Project Area, and appropriating the same amount in the
Bayfront-Town Centre I Project Area to the Police Facility Capital Project for the consultant
contract and tenant relocation costs.
BOARDS/COMMISSIONS RECOMMENDATION
Not applicable.
DISCUSSION
The existing Police Headquarters is significantly undersized and does not meet the needs of the
Police Department today. The City investigated the feasibility of expanding and retrofitting the
existing facility. It was determined that the existing facility could not be retrofitted/expanded to
4-3
PAGE 4, ITEM NO.: ~
MEETING DATE: 07/10/01
meet the current or future needs of the Department due to physical constraints and the inability to
meet current code standards for police facilities. After a number of sites were reviewed, it was
recommended to locate the new Headquarters at the commercial property at 362-398 F Street,
located immediately to the southeast of the Civic Center. This was the preferred site because it
allowed for the expansion of the Civic Center and relocation of the Police Headquarters in the
immediate vicinity. The Police Facility will be in an identifiable, visible location that will be
convenient to the public. The immediate proximity to the Civic Center will support the provision
of consolidated government services and community policing, and promote interaction of City
Departments.
This location also supports the Police Department's desire to remain in the area of the Civic
Center to support Community government and policing, and cooperative problem solving.
Site Description
The property, 362-398 F Street, is located immediately southeast of the Civic Center Complex at
the southeast corner of Fourth Avenue and "F" Street. The SDG&E substation and First
International Bank are located to the west, a condominium complex is located to the south, an
office building is located to the east and the City's Main Library is located to the north. The
property is 2.85 acres and has an approximately 40,000 square foot commercial-retail building.
The Center is approximately 50% occupied with 13 tenants. Acquisitian of the property will
require providing relocation assistance to these businesses. Staff is recommending that PRC
Relocation Consultants be retained to assist in the relocation of the private businesses.
The "commercial site" is required to assemble a parcel for the construction of the Police
Headquarters. The City owns a triangular 0.78 acres parcel immediately contiguous to the
commercial site, commonly known as the EI Dorado Building. The combined parcels result in a
3.6 acre site which is able to accommodate the Police Development Program.
Site Valuation and Neqotiations
After evaluating a number of other options, staff began serious negotiotions with Chula Vista
Center, the property owner of the commercial site. Staff had the real property appraised by ~
Kenneth A. Keagy, MAl, and the trade fixtures and leasehold improvements (collectively FF&E)
appraised by Richard Hodges, ASA of Desmond Morcello and Amster. The real estate was
valued at $4.5 million, and the FF&E was appraised at $286,130. There is some tenant dispute
regarding the value of the FF&E. Using the appraisal as a basis, staff negotiated a purchase price
of $4.5 million for the 2.85 acre parcel and $286,130 for the FF&E. Due to the tenant conflicts
regarding the FF&E, the Purchase & Sale agreement provides that the $286,130 be held in an
interest bearing account until those conflicting claims are resolved to the City's satisfaction.
A Phase I and II assessment of the site was conducted by Design for Health Environmental
Services. Asbestos and lead were found in the building. The estimate for remediation is
$83,800. The agreement provides that the seller is responsible for these costs. After review and
approval of the costs by the seller the funds will be withheld from the purchase price in escrow.
An escrow has been opened with Chicago Title and they are presently preparing a survey for an
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PAGE 5, ITEM NO.: --=L
MEETING DATE: 07/10/01
expanded ALTA title report ot the City's request. The close of escrow is currently onticipated to
occur in October, 2001.
Relocation of Tenants
The site will be cleared to accommodate the construction of new Police Headquarters, requiring
the relocation of the existing 13 tenants. Relocation services will be provided to each individual
tenant, as set by State Redevelopment Law. The specialized nature of relocation consultant
services and the time frame necessary for completion of the relocation effort requires the
retention of an outside specialist. Staff is recommending that Council/Agency approve the
Agreement with PRC Relocation Consultants to assist in the evaluation/relocation of each of the
businesses listed below.
1. ACE LEATHER, 382 F Street
2. ADAMS DENTISTRY, 396 F Street
3. BASKIN-ROBBINS, 398 F Street
4. CALIFORNIA GAME CENTER, 380 F Street
5. CARDENAS TV & VCR REPAIR, 376 F Street
6. CITY PAY DAY, Inc., 396a F Street
7. JUNGLE JUICE BAR, 392 F Street
8. JUST HAIR, 384 F Street
9. MARY'S, 386 F Street
10. MÞV< 99~ Stores, 368 F Street
11. MRS. COOK'N'LUG'S, 378 F Street
12. POOR GOURMET, 390 F Street
13. TOWN PA-MA EXPRESS, 374 F Street
In addition to the above businesses, South Bay Community Services (SBCS) and the office of Mr.
Lowell Blankford will be relocated from the EI Dorado Building. Both tenants are on month-to-
month leases and are ineligible for relocation benefits. However, PRC and the City are assisting
these tenants with locating replacement office space and may provide additional services on a case-
by-case basis.
PRC will provide all-inclusive relocation services for the project, including hands-on assistance to
each of the tenants. They will also provide a variety of project management functions and on-going
property management once each commercial space is vacated. In addition, a formal Relocation
Plan, although not likely, may be required. The estimated budget to complete the relocation is
$500,000. The tenants have already been apprised of the City's intent to acquire the property;
however, the formal 90-day notice will be given on July 20, 2001 after approval of the Purchase
Agreement. Demolition is set to begin after the expiration of the 90 day notice period in late
October. The Police Headquarters is anticipated to be ready to occupy in July 2003.
With respect to the Relocation Consultant, staff has used PRC in the past, both for actual relocation
services and for professional advice and consultation. Additionally, PRC was selected as the City's
formol relocation assistance firm after a competitive bid process several yeors ago. Unfortunately,
4-s-
PAGE 6, ITEM NO.: ~
MEETING DATE: 07/10/01
that contract has expired and a new competitive bid process has not been undertaken. Due to their
extensive experience, and relative lack of other qualified professional relocation consultant firms in
the region, staff is canfident that the result of a formal bidding process would most likely render the
same result and that their costs are reasonable and competitive. Due to the compressed timeframe
for this project, staff recommends that the competitive process be waived in this instance.
Redevelopment Aaency Findinas
Per Health and Safety Code Section 33445(a)(1-3) of the California Community Redevelopment
Low, Agency funds may be used for the acquisition of land for or the construction of certain public
facilities when the Agency makes the following findings:
1. The proposed project will benefit the Redevelopment Project Area, or immediate neighborhood,
2. There are no other reasonable means of financing, and
3. The proposed project will assist in the elimination of blight.
The construction of the new Police Headquarters at the commercial property benefits the adjoining
Town Centre II Redevelopment Area by facilitating in the renovation/expansion of the Civic Center.
This benefits the surrounding neighborhood, as well as the community at large by providing
consolidated government services and a Headquarters facility that will allow the Police Force to serve
the Chula Vista Community well into the future. It also benefits the Town Centre I Redevelopment
Area, in which it is located, by retaining and expanding viable uses, including public facilities, and
comprehensive beautification of the area.
Funding of acqu,isition and relocation costs by the Redevelopment Agency is permitted under State
redevelopment law, as the site is entirely located within an adopted redevelopment project area
(Town Centre I.) It has been determined that there are, at present, no other reasonable means to
acquire the property located at 362-398 F Street and to pay for the necessary relocation costs except
through eligible Redevelopment Agency funds generated through the Agency's 2000 Tax Allocation
Bond issuance. All costs other than acquisition and relocation will be provided by other City funding
sources.
The construction .of the new Police Headquarters will assist in the elimination of blight by replacing a
stagnating commercial property that had abnormally high vacancies, and was falling into disrepair.
The new Police Facility will replace the existing substandard, inadequately sized Police Facility.
In addition to the above, this action requires that a public hearing be conducted, pursuant to Section
33679 of the Cqmmunity Redevelopment Law. The public hearing has been noticed for two weeks
prior to the hea~ing date and all other requirements of this provision, which include the necessary
findings elaborajed above, have been met.
FISCAL IMP~CT
Approval of the resolution will authorize the expenditure of $5,286,210 of the proceeds from the
Redevelopment Agency's 2000 Tox Allocation Bond issue, leaving approximately $6.8 million
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PAGE 7, ITEM NO.: -.!L
MEETING DATE: 07/10/01
remaining. The real estate is $4.5 million and the FF&E is $286,130 resulting in a total
acquisition cost of $4,786,130. Funds to complete the asbestos and lead removol, currently
estimated at $83,800 will be withheld from the $4.5 million purchase price upon the seller's
approval of the cost estimate.
In addition, fun<;Jing of $500,000 is being authorized for relocation costs, including $60,000 for
consultant costs: Other potential redevelopment and revitalization efforts that potentially could be
funded from the 2000 Tax Allocation Bond proceeds may be delayed or eliminated with this
action.
ATTACHMENjTS
1. Purchase Agreement
2. PRC Relocation Services Agreement
J,\COMMDEV\STAFF.~EP\07.1 0-01 \PD #3 Purch",e and Sale Agmt.dac
4-1
CITY RESOLUTION NO.
AGENCY RESOLUTION NO.
OINT RESOLUTION OF THE CITY COUNCIL AND
EDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA 1)
ATIFYING THE EXECUTION OF A PUHCHASE AND SALE
GREEMENT BETWEEN CITY OF CHULA VISTA REDEVELOPMENT
GENCY AND CHULA VISTA CENTER, A CALIFORNIA
ORPORATION, FOR ACQUISITION OF PROPERTY LOCATED AT
62-398 "F" STREET REQUIRED TO CONSTRUCT THE CITY OF
HULA VISTA POLICE HEADQUARTERS FACILITY; AND 2)
MENDING THE BUDGET FOR THE REDEVELOPMENT AGENCY BY
PPROPRIATING $4,786,210 FROM THE PROCEEDS OF THE 2000
AX ALLOCATION BOND ISSUE IN THE MERGED PROJECT AREA
OR THE REPAYMENT OF OUTSTANDING ADVANCES TO THE
AYFRONT-TOWN CENTRE I PROJECT AREA, AND APPROPRIATING
HE SAME AMOUNT IN THE BAYFRONT-TOWN CENTRE I PROJECT
REA TO THE POLICE FACILITY CAPITAL PROJECT FOR PROPERTY
CQUISITION COSTS
WHERE S, the City of Chula Vista has experienced significant growth and the Chula Vista
Police Headquart rs is significantly undersized to serve today's and the future population; and
WHERE S, in order ensure the quality and level of service provided by the Police Department
continues and im roves it is necessary to construct a new full-service Headquarters to support the current
needs of the poli e force; and
WHERE S, a facility analysis determined that the existing facility could not be
retrofitted/expan ed to meet the needs of the Police Headquarters and that an off-site location was
necessary to con truct the Police Headquarters; and
WHERE S, an extensive site analysis was conducted which concluded with the recommendation
to locate the Poli e Facility at the commercial center site located at 362-398 F Street: and
WHERE S, the City's Community Development Department Planning and Environmental
Manager review d the proposed Project in conjunction with the Police Headquarters Master Plan and
issued Mitigated egative Declaration IS-01-017 for the project in accordance with CEQA; and
WHERE S, staff has negotiated an acquisition price accepted by the owner of $4,786,310 for
real estate and t nant improvements and staff is presenting the purchase and sale agreement entitled
Acquisition of R al Property Agreement, dated July 10, 2001, executed by the City Manager and the
owner of the pro erty; and
WHERE S, per Section 33445(a)(1-3) of the California Community Redevelopment Law, the
following finds ha e been made:
1. The propose project will benefit the Redevelopment Project Area, and/or immediate neighborhood:
The construc on of the new Police Headquarters at the commercial property benefits the adjoining Town
Centre II Re evelopment Area by facilitating in the renovation/expansion of the Civic Center. This
benefits the urrounding neighborhood, as well as the community at large by providing consolidated
government s rvices and a Headquarters facility that will allow the Police Force to serve the Chula Vista
Community ell into the future. It also benefits the Town Centre I Redevelopment Area, in which it is
4-~
located, by etaining and expanding viable uses, including public facilWes, and comprehensive
beautification f the area.
2. There are no ther reasonable means of financing:
Funding of a quisition and relocation costs by the Redevelopment Agency is permitted under State
redevelopme t law, as the site is entirely located within an adopted redevelopment project area (Town
Centre I.) It as been determined that there are, at present, no other reasonable means to acquire the
property locat d at 362-398 F Street and to pay for the necessary relocation costs except through eligible
Redevelopm nt Agency funds generated through the Agency's 2000 Tax Allocation Bond issuance.
3. The proposed project will assist in the elimination of blight.
The construc ion of the new Police Headquarters will assist in the elimination of blight by replacing a
stagnating c mmercial property that has in the past had abnormally high vacancies, and was falling
into disrepair. Presently the anchor space and one other unit is vacant. The new Police Facility will
replace the e isting substandard, inadequately sized Police Facility.
NOW, T EREFORE, BE IT RESOLVED the City Council and Redeveiopment Agency of the City
of Chula Vista ha e conducted a public hearing pursuant to Health and Safety Code Section 33679 of the
Community Red velopment Law respecting use of Redevelopment Agency funds for the acquisition of
land for the installation and construction of a publicly owned facility.
NOW, T EREFORE, BE IT FURTHER RESOLVED the City Council and Redevelopment Agency
of the City of Chu a Vista do hereby approve a Resolution:
1. The roposed project could have a significant impact on the environment; however, there will
not be a signifi ant effect as the mitigation measures are implemented within the proposed Plan.
Accordin9ly, Mitig ted Negative Declaration IS-01-017 was prepared in accordance with CEQA.
2. Rati ing the executed Purchase and Sale Agreement between the City of Chula Vista
Redevelopment gency and the Chula Vista Center, a California Partnership, for acquisition of property
located at 362-39 "F" Street for the construction of the City Police Headquarters; and
3. Auth rizing staff to amend the Redevelopment Agency budget by appropriating $4,786,210 of
the remaining un ledged proceeds from the Redevelopment Agency's 2000 Tax Allocation Bond and
appropriating sai funds to the Police Facility Capital Project for property acquisition costs.
PRESENTED BY APPROVED AS TO FORM BY
David D. Rowlan s, Jr.
City Manager
J:\COMMDEVIRESO IPD #3b Purchase Agmt.doc
~- 9
RESOLUTION NO.
OINT RESOLUTION OF THE CITY COUNCIL AND THE
EDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA 1)
AIVING THE COMPETITIVE CONSULTANT SELECTION
ROCESS; 2) AUTHORIZING A CONSULTANT CONTRACT WITH
ACIFIC RELOCATION CONSULTANTS FOR $60,000 TO
ROVIDE RELOCATION SERVICES FOR THE NEW DOWNTOWN
OLICE FACILITY; AND 3) AMENDING THE BUDGET FOR THE
EDEVELOPMENT AGENCY BY APPROPRIATING $500,000
ROM THE PROCEEDS OF THE 2000 TAX ALLOCATION BOND
I SUE IN THE MERGED PROJECT AREA FOR THE REPAYMENT
F OUTSTANDING ADVANCES TO THE BAYFRONT-TOWN
ENTRE I PROJECT AREA, AND APPROPRIATING THE SAME
MOUNT IN THE BAYFRONT-TOWN CENTRE I PROJECT AREA
0 THE POLICE FACILITY CAPITAL PROJECT FOR THE
ONSULTANT CONTRACT AND FOR TENANT RELOCATION
OSTS
WHERE S, the Bayfront and Town Centre I Redevelopment Project Areas are merged for
financial purpos s and the ultimate use of the 2000 Tax Allocation Bond proceeds for relocation
purposes at the proposed new Police Department facility is an eligible redevelopment expense and
located within th Town Centre I Redevelopment Project Area; and
WHERE S, the relocation of business tenants from the proposed new Police Department
facility will facilit te the redevelopment of an underutilized commercial site and further the cause of
downtown revita ization through the development of a major new infill facility;
WHERE S, the new Police Department facility development requires that the City provide a
comprehensive ackage of relocation services, pursuant to State Redevelopment Law, to business
tenants that will e displaced by the project; and
WHERE S, the City's Community Development Department Planning and Environmental
Manager review d the proposed Project in conjunction with the Police Headquarters Master Plan and
issued Mitigated egative Declaration IS-01-017 for the project in accordance with CEQA; and
WHERE S, due to the specialized nature of the consultant services required and in order to
meet all neces ary time-frames for commencement of demolition and construction, the City is
waiving the for al consultant selection process because Consultant has recently participated in a
competitive sel ction process and was found to be the lowest responsive and responsible bidder,
Consultant has satisfactorily performed work for the City in the past, and Consultant's pricing
appears reason ble based on comparable market rates; and
WHERE S, the City will therefore enter into a contract for comprehensive relocation services
with Pacific Rei cation Consultants in the amount of $60,000 to be funded from Capital Improvement
Fund PS 149 i which said contract will include all-inclusive relocation services necessary for an
effective and c mprehensive relocation of tenants and property management services prior to
demolition.
NOW, T EREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the City
of Chula Vista have conducted a public hearing pursuant to Section 33679 of the Community
Redevelopment aw respecting use of Redevelopment Agency funds for the acquisition of land for the
installation and c nstruction of a publicly owned facility.
4-10
NOW, T EREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the
City of Chula Vi ta does hereby approve a Resolution:
1. aiving the competitive consultant selection process; and
2. uthorizing a consultant contract with Pacific Relocation Consultants for $60,000
from Capital 1m rovement Project PS149 to provide relocation services for the new Downtown
Police facility, a d;
3. uthorizing staff to amend the Redevelopment Agency budget by appropriating
$500,000 of th remaining unpledged proceeds from the Redevelopment Agency's 2000 Tax
Allocation Bond and appropriating said funds into Capital Improvement Project PS149 for Police
facility relocation costs.
PRESENTED B APPROVED AS TO FORM BY
~+ /JxÆ
David D. Rowla ds, Jr.
City Manager cy Attorney
" <o___,wjeo ~, ".~".. "'"' Ooc
4- / (
ATTACHMENT 1
Commonwealth Escrow No. 1061556-4-BW
Title Order o. 1061556-4
Assessor Par el Numbers:
568-270-03 & 568-270-11
ACQUISITION OF REAL PROPERTY AGREEMENT
(Escrow Instructions)
THIS AC UISITION OF REAL PROPERTY AGREEMENT ("Agreement") is
entered into this day of July, 2001, by and between the
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA, a public agency
("City"), and Chula Vista Center, a California partnership ("Grantor"),
(collectivel "Parties") for acquisition by City of certain real
property for the City of Chula Vista Police Station Redevelopment
Project ("pr ject") .
WHEREAS, City desires to acquire for public use all of Grantor's
right, inter st, and title in and to Grantor's real property as
commonly described as 362 -398 "F" Street in the City of Chula Vista,
County of San Diego, State of California, also known as Assessor
Parcels Numb rs 568-270-03 and 11 ("Property") and has scheduled a
public hearing to condemn the Property;
WHEREAS, Grantor agrees under such threat of condemnation to sell
said Property; and
WHEREAS, a Grant Deed covering Grantor's real property to be
acquired by he City ("Property") shall be executed and delivered to
City's authorized agent, and a copy of said Grant Deed with
corresponding legal description is attached to this Agreement as
Exhibit 1.
FORE, the Parties agree as follows:
1. TO SELL AND PURCHASE
Grantor grees to sell to City, and City agrees to purchase from
Grantor, upo the terms and for the consideration set forth in this
Agreement, fee simple title in and to the Property more particularly
described in he Grant Deed which is attached hereto as Exhibit 1, and
incorporated erein by this reference.
2. PRICE
The tota purchase price payable, on the terms set forth herein,
in cash throu h escrow shall be the sum of FOUR MILLION SEVEN HUNDRED
EIGHTY SIX THOUSAND ONE HUNDRED THIRTY DOLLARS AND NO CENTS
($4,786,130.0 ) ("Purchase Price"), less any and all monetary liens,
c, \WINDOWS\TEMPO RY INTERNET FILES\OLK5076\ACQUIS REAL PROP AGREEMENT.DOC - 1 -
4-12-.
including bu not limited to, the unpaid principal balance of that
certain Promissory Note in the original principal amount of $1,900,000,
dated Februa y 1, 1991 (the "Note"), made payable by Grantor to the
order of Con ederation Life Insurance Company, a Canadian corporation
("CLIC") , which Note and monetary liens, City will cause to be paid at
close of esc ow. Grantor hereby acknowledges that said Purchase Price
is a total s ttlement which includes any and all claims and/or damages
of every nat re and kind Grantor may be entitled to by reason of the
acquisition f the Property by City for the Project, including but not
limited to, value of the real property, value of improvements
pertaining t realty, leasehold improvements, precondemnation and/or
inverse conde nation damages, owner participation claims, interest, and
all costs and fees, including all attorney and expert fees, incurred in
connection w'th City's acquisition of the Property for the proj ect.
Except or the obligations of City under this Agreement and the
ROE agreemen (as defined in section 3 below), Grantor hereby waives
and releases the City of Chula Vista, its Redevelopment Agency,
including th ir Council and Board, their officers, employees, agents,
and represen atives from and against any and all claims, actions,
demands and uits relating to the Property, the Purchase Price, the
City's acqui ition and/or Project. This release extends to all such
claims which ow exist or which may arise in the future, whether or not
such claims re known to Grantor, and Grantor hereby expressly waives
rights under California Civil code Section 1542 which provides as
follows:
"A gene al release does not extend to claims which the
credito does not know or suspect to exist in his favor at
the time of executing the release, which if kno~n by him must
have ma erially affected his settlement with the debtor."
Full pa ment under this Agreement shall be madei concurrently with
the close of escrow, at which time City will obtain a policy of title
insurance sh wing fee simple marketable title as identified in Section
5 below.
3. SITE IN ESTIGATION/DUE DILIGENCE
Pursuan to that certain Right of Entry Agreement, made on April
3, 2001, by and betweel"1 the Parties ("ROE agreement"), City is
conducting geotechnical studies to insure that the P~operty is suitable
for City's P oject. City shall complete i tiS studies prior to close of
escrow. Sh uld City decide, the Property is not suitable for the
Project, City shall notify Owner as soon as practical of its intent not
to proceed w'th the purchase of the Property or close of escrow. City
shall not incur any liability for same, how$ver, City's approval of the
Property for its Project shall not be unreasonably withheld. Said ROE
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agreement pr vided for an expiration date, which date has been extended
by the Parti s through close of escrow.
4. RETENTI N OF GRANTOR'S PROCEEDS
Escrow older is hereby authorized and instructed to withhold from
the Purchase Price, the sum of TWO HUNDRED EIGHTY SIX THOUSAND ONE
HUNDRED THIR Y DOLLARS AND NO CENTS ($286,130.00). Escrow Holder is
hereby instr cted to place said funds in an interest-bearing account;
said interes to accrue to Grantor if Grantor is ultimately determined
to be the ower, otherwise to City, or to each in their prorata share.
Any disburs ments from said account shall require written instruction
from both Gr ntor and City only after any and all tenant apportionment
claims are esolved to the satisfaction of the City. Said sum
represents City's appraised value for improvements pertaining to realty
and leasehol improvements which Grantor claims entitlement but City
believes wil be claimed by Grantor's tenants. Said apportionment
claims may n t all be resolved prior to close of escrow.
5. ESCROW INSURANCE
City ag ees to open an escrow in accordance with this Agreement
at Commonwea th Land Title Corporation, Symphony Towers, 750 "B"
Street, Suit 2350, San Diego, California 92101. City agrees to pay
all usual an reasonable fees, charges and costs which arise in the
escrow upon emand of Escrow Holder.
This Ag eement constitutes the joint escrow instructions of the
Parties, and Escrow Holder to whom these instructions are delivered is
hereby empowered to act under this Agreement. The Parties hereto agree
to do all cts reasonably necessary to close escrow as soon as
possible, bu in all events within thirty (30) days after a fully
executed cop of this Agreement, duly ratified by the City Council
pursuant to ection 22 below, is deposited into escrow. The terms
closing and/ r close of escrow as used herein shall mean the date
necessary in truments of conveyance are recorded in the office of the
County Recor er. Recordation of instruments delivered through this
escrow is au horized if necessary or proper in the issuance of title
insurance pu suant to this Agreement.
Grantor has executed and handed the executed Grant Deed to City's
authorized a ent, concurrently with this Agreement. As soon as
possible aft r opening of escrow, City will deposi.t said deed, with
Certificate f Acceptance attached, with Escrow Holder on Grantor's
behalf. City agrees to deposit the Purchase Price into escrow upon
demand of Es row Holder, and the Parties acknowledge that portions of
the Purchase Price will be used by Escrow Holder to accomplish the
payment on b half of City of the principal and accrued interest due on
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Chc No Co eo} aChe cpo, U ana w ill be co, eined i 0 i 0 em OHM jog
account(s) p rsuant to sections 4 above (tenant apportionment) and 11
below (hazar ous material). Grantor and City agree to deposit with
Escrow Holder any additional instruments as may be reasonable and
necessary toicomplete this transaction.
All funrs received in this escrow shall be deposited with other
escrow funds in a general escrow account(s) and may be transferred to
any other su1h escrow trust account in any State or National Bank doing
business in he State of California. All disbursements shall be made
by wire tran6fer from such account, unless Grantor requests another
form of paym~nt. City shall be entitled to any and all interest earned
on the Purch4se Price through close of escrow.
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When Esqrow Holder holds for City the Grant Deed in favor of City
executed and lac knowledged by Grantor covering the Property and accepted
by City, Esc~ow Holder shall cause to be issued and delivered to City,
as of the c~osing date, a CLTA standard coverage policy of title
insurance or~ upon City's request therefor, an ALTA (Owner's) standard
or extended overage policy of title insurance ("Title Policy"), issued
by Commonwea~th Land Title Corporation, with liability in the amount of
the Purchase IPrice, covering the Property and showing title vesting in
City free 9f all recorded and unrecorded, liens, encumbrances,
assessments, ¡easements, leases and taxes except:
a) All nondelinquent general and special real property
taxes for th~ current fiscal year;
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b) The standard printed exceptions and exclusions
contained inlthe CLTA or ALTA form policy;
i c) Public and Quasi-public utility, public alley, public
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street easem~nts and rights of way of record; and
I d) Ant exceptions created or consented to by City,
including wiFhout li¡mitation, any exceptions arlslng by reason of
City's posse~sion of br entry on the Property.
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Escrow ~older is authorized to and shall pay and charge Grantor,
upon Grantor'ls wri ttep approval, for any amounts (including the payment
of the unpaiØ princi~al of the Note and accrued interest) reasonable
and necessar~ to place title in the condition necessary to satisfy this
Agreement, ej<cluding I any penalty or fee for prepayment to any lien
holder whichlthe Parties contend do not apply pursuant to California
Code of Civi~ Procedure Section 1265.240.
Escrow ttolder authorized to and shall pay and charge City for
any title in~urance ~remium.
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Escrow f authorized to and shall disburse funds and
deli ver the grant d ed when conditions of this escrow have been
fulfilled by Grantor ,and City.
6. TAX ADJ(jJSTMENT ~ROCEDURE
Escrow ijolder i~ authorized and is instructed to comply with the
following tax adjust~ent procedure:
(1) Pay and cha~ge Grantor for any unpaid delioquent taxes and/or
perualties ~nd interest thereon, and for any delinquent or
noD-delinq~ent assessments or bonds against the Property;
(2) Grantor's c~rrent taxes, if unpaid, shall be prorated to date
of close qf escrow on the basis of a 365 day year in
acc:ordance i with Tax Collector's proration requirements,
together w~th penalties and interest, if said current taxes
are unpaidj At close of escrow, a check payable to the
Co~nty Tax ~ollector for Grantor's prorata portion of taxes
shall be fdrwarded to City with closing statement; and
(3) Any taxes ~hich have been paid by Grantor, prior to opening
of this e~crow, shall not be prorated between City and
Grantor, b~t Grantor shall have the sole right, after close
of escrow, ¡to apply to the County Tax collector for refund.
This refurjd would apply to the period after City's
acquisitio~, pursuant to Revenue and Taxation Code Section
5096.7. I
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7. RESPONSIBILITY IF ESCROW HOLDER
Responsibility o~ Escrow Holder under this Agreement is expressly
limi ted to paragraphs! 4, 5, 6 and 11 herein and to its liability under
any policy of title ilnsurance issued in regard to this transaction.
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8. INDEMNIFICATION ¡FOR UNRECORDED INTERESTS
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Upon title vestirg in City, Grantor warrants that it has no actual
knowledge of unrecor~ed encumbrances (including but not limited to
liens, leases, easem nts, or licenses) on all or any portion of the
Property, and Grantoa-- agrees to hold the City of Chula Vista, its
Redevelopment Agenc~, including their Council and Board, their
Officers, employees, agents, and representatives harmless, defend,
indemnify and reimburse them for any and all of City's losses and
expenses, including þourt costs and attorneys' fees, occasioned by
reason of any such u~recorded encumbrance of said Property.
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9. ACQUISITION BY ~TIPULATED JUDGMENT IN LIEU OF DEED
In the event Gr{ntor is unable to deliver title in a reasonable
time in accordance ith the terms of this Agreement, the City may
pursue an action in eminent domain for acquisition of the Property.
Grantor agrees to w~ive all claims and defenses to such action and
agrees that this Agrebment shall constitute a stipulation which may be
filed in such actior as final conclusive evidence of public use,
necessity and just cqmpensation for the acquisition, including all of
the items provided inl Chapter 9, Title 7 of the Code of Civil Procedure
commencing with sect~n 1263.010. Unless City is in default under this
Agreement, Grantor h reby consents to such stipulated judgment and/or
diemi,,"' of eôld a"fon by Che 'iCy aod 'aivoa any aod aU "'aima Co
money that may be de osited in the Superior Court in connection with
such action upon pro f of deposit of the entire Purchase Price into
escrow.
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10. CONVEYANCE OF I~TEREST
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Grantor agrees io convey by Grant Deed to City title in and to
said Property as contemplated by this Agreement.
11. HAZARDOUS MATEtIALS/ENVIRONMENTAL ISSUES AND RETENTION OF
GRANTOR'S FUNDS THEREFOR
It is expresslj agreed and understood that Grantor shall be
responsible for cost~ of remediation of any hazardous materials/waste
found on the PropertYf Should hazardous materials be found to exist on
the Property, the qty may exercise its right under existing law,
including but not li~i ted to, the Polanco Act (California Health &
Safety Code Section 33459, et seq.) to bring an action, if necessary,
to recover clean-up c sts from Grantor or any others who are ultimately
determined to have! responsibility for said hazardous materials
condition of the Pro~erty. Grantor agrees to hold the City of Chula
Vista, its Redeveloprjlent Agency, and their Council and Board, their
officers, employees, lagents, and representatives harmless, indemnify,
reimburse and defend, them for any and all losses, including court
costs and attorneys'! fees, occasioned by reason of said hazardous
materials condition o~ the Property. Grantor warrants that he has no
knowledge of any haztrdous materials/waste on the Property and that
Grantor has not used ~ny hazardous materials or disposed of hazardous
waste on the Property~ and that there are no underground tanks on the
Property to the best þf Grantor's knowledge.
City has obtained an estimate for remediation costs in the amount
of $83,800.00, for. removal and disposal of asbestos and lead
contaminants ("clean-4up") , which estimate Grantor disputes. Escrow
Holder is hereby authorized and instructed to withhold from the
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Purchase Price, the swm of EIGHTY THREE THOUSAND EIGHT HUNDRED DOLLARS
AND NO CENTS ($83,800fOO). Escrow Holder is hereby instructed to place
said funds in an int~rest-bearing account; said interest to accrue to
Grantor if Grantor is: ultimately determined to be the owner, otherwise
to City, or to each in their prorata share. Any disbursements from
said account shall require written instruction from both Grantor and
City only after any ánd all disputes over said clean-up estimate are
resolved between the ~arties.
Upon completion jof the Project, City may in its sole discretion,
provide Grantor with ~ written release of the indemnification provided
for in this section 1!1.
12. GRANTOR DISCLOSUIRES
Grantor shall pr~vide City with all di$closures required by law in
connection with the tFansfer of title to real property.
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13. POSSESSION OF TH~ PROPERTY AND DISPOSITION OF GRANTOR'S FF&E
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It is agreed an~ confirmed by the Parties hereto that except as
provided in ROE agr ement the right of possession and use of the
Property by the City bnd/or its agents, including the right to remove
and dispose of impro~ ments, shall be effective upon close of escrow,
and that the Purchasje Price includes, but is not limited to, full
payment for such pos~ession and use, including damages, if any, from
said date. Unless +therwise agreed in writing, Grantor agrees to
vacate the Property op or before close of escrow and shall not require
the City to seek legC¡l remedies to remove Grantor from the Property.
City expressly agree:ol to allow Grantor to remove and dispose of, at
Grantor's discretion" any and all furniture, fixtures, equipment and
improvements ("FF&E")' from two vacant suites, i.e. numbers 362 and
362A, so long as such: removal and/or disposal occurs prior to close of
escrow.
All Grantor's FIF&E shall remain thE;> property of Grantor and
Grantor shall have thf right at any time, prior to close of escrow, to
remove or otherwise d~sposed of all or any portion of same. All said
FF&E remaining on thej premises after close of escrow shall become the
property of the City and City may dispose of same, at its sole
discretion, without amy liability whatsoever. City shall not be liable
for any loss of or da~age to said FF&E, regardless of when such loss or
damage occurs.
14. RENTAL AND OCCUPANCY
Grantor agrees ¡to execute a complete, current and correct
statement of rentals ~nd deliver same to City within fifteen (15) days
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after City's executi~n of this Agreement with copies of any written
leases or rental agrleements, or amendments thereto, which have not
already been provided to City. All rents shall be prorated as of the
close of escrow on tht basis of a thirty (30) day month consistent with
said statement, subje t to approval of City. Subsequent to opening of
escrow, Grantor agree, not to rent any units on the premises which are
now vacant, or which ~ay be vacated by present occupants prior to close
of escrow. '
Grantor hereby f-iarrants that the rental statement referred to
above shall include t~e terms of all rental agreements, tenancies, and
leases (written, unwþitten, recorded or unrecorded) for all or any
portion of the Property and Grantor agrees to hold City of Chula Vista,
its Redevelopment AgFncy, their Council and Board, their officers,
employees, agents, anR representatives harmless, indemnify, defend and
reimburse City for a~l liability from any such leases or agreements.
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15. LEASEHOLD INTER~STS
Grantor hereby d~scloses that the only tenancies and/or leases
relating to the prOPlrty are with those tenants listed in Exhibit 2
attached hereto and' ncorporated herein by this reference. Grantor
represents to City a d warrants that the entire fee portion of the
Purchase Price, i.e. OUR MILLION FIVE HUNG. RED THOUSAND DOLLARS AND NO
CENTS ($4,500,000.00) belongs to Grantor as landlord pursuant to the
following provision ~ontained in all leases with tenants:
All compensatiorj¡ awarded upon any condemnation or taking
shall belong an1be paid to landlord, and tenant shall have
no claim there 0 Tenant hereby irrevocably assigns and
transfers to Lan lord any right to compensation or damages to
which tenant ma~ become entitled during the term hereof by
reason of the coþdemnation of all or a part of the premises,
the shopping cenlter, or the common area; provided, however,
that tenant sha~l be entitled to any award or proceeds paid
on account of ahy cost or loss tenant may sustain in the
removal of tena~t's fixtures, equipment, and furnishings.
Grantor hereby warrants that the Property is transferred free and clear
of any tenant claim tþ the fee portion of the Purchase Price. Grantor
agrees to hold the City of Chula Vista, its Redevelopment Agency, their
Council and BoardJ their officers, employees, agents, and
representatives harml~ss, defend, indemnify. and reimburse them for any
and all of their løsses and expenses ,including court costs and
attorney's fees, occapioned by reason of anv such claim thereto by said
tenants. THE SOLE EX~EPTIONS TO SAID INDEMNIFICATION ARE 1) Relocation
Benefit claims pursuaþt to California Government Code Section 7260, et
seq., and 2) Loss or þamage to business goodwill pursuant to California
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Code of Civil proced~re Section 1263.510.
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16. WARRANTIES, REP1ESENTATIONS AND COVENANTS OF GRANTOR
Grantor hereby wþrrants, represents and/or covenants that (except
as otherwise expressl!y provided in this Agrceement to the contrary):
(I) To Grantor'~ knowledge, there are: no actions, suits, material
claims, le~al proceedings other than the instant eminent
domain action, or any other proceedings affecting the
Property or any portion thereof, at law or in equity before
any court or governmental entity" domestic or foreign;
(2) To Grantor':s knowledge, there are no encroachments onto the
Property by improvements on any adjoining property, nor do
any buildings or improvements on the Property encroach on
other propeirties;
(3) Until the closing, Grantor spall perform all of its
obligations, under any service contracts or other contracts
affecting the Property;
(4) Until the c~osing, Grantor shall !not do anything which would
impair Gr~ntor's title to al~ or any portion of the
Property; :
(5) To GrantoJj's knowledge, all utilities including gas,
electricity¡ water, sewage and telephone are available to the
Property;
(6) To Grantor:' s knowledge, neith~r the execution of this
Agreement nor the performance of ¡the obligations herein will
conflict w~th, or breach any of the provisions of any bond,
note, evidEjnce of indebtedness" contract, lease, or other
agreement °ir instrument to which! the Property may be bound;
and'
(7) Until the dlosing, Grantor shallf upon learning of any fact
or condi tidn which would cause i any of the warranties and
representat!ions in this paragrij.ph not to be true as of
closing, in(l!nediately give writtf:en notice of such fact or
condition tÞ City.
17. COUNTERPARTS
This Agreement may be executed in coupterparts, each of which so
executed shall, irreswective of the date of!its execution and delivery,
be deemed an origin!al, and all such counterparts together shall
consti tute one and thle same instrument.
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18. MEDIATION OF DI~PUTES
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If any dispute arises out of this! Agreement, or the breach
thereof, and if the d~spute cannot be sett~ed through negotiation, the
Parties agree first ito try in good faitl1 to settle the dispute by
mediation before a mediator to be agreed uþon by the Parties, before
resorting to legal action. The Parties agr~e to share equally the cost
and fees for mediation.
19. ATTORNEYS' FEES
In the event any legal action is brought to enforce the terms of
this Agreement or to recover damages for !i ts breach, the prevailing
party shall be entitled to reasonable attorneys' fees therein as well
as attorneys' fees incurred in enforcing any judgment pertaining
thereto.
20. EMINENT DOMAIN
It is mutually agreed that this Agre~ment is executed under the
threat of condemnation pursuant to the power of eminent domain as those
terms are used in the United States Intern~l Revenue Code.
21. NOTICES
Any notices or documents to be mai~ed or delivered shall be
addressed to or deli~ered as follows: !
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Grantor: Chula Vista Cente~, a California partnership
c/o Robert Caplanf Trustee, etc., General
Partner I
Seltzer Caplan McMahon Vitek
750 B Street, Sui~e 2100
San Diego, CA 921þ1
City: Redevelopment Agehcy of the
City of Chu1a Vis~a
Attn: City Manage~
276 Fou~th Avenue¡
Chula Vlsta, CA 9~910
With copy: Linda D. Bartz, Ebq.
Linda Bartz & Assþciates
1010 Second Avenue, Suite 1010
San Diego, CA 921bl-4904
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22. CONTINGENCY
It is understo~d and agreed betw~en the Parties that the
completion of this ransaction, and the ¡ escrow created hereby, is
contingent upon the srecific acceptance, aþproval and ratification of
the City Council of t~e City of Chula Vista! acting as the Redevelopment
Board, at it's sole d~scretion. .
23. BINDING ON HEIRS¡ AND ASSIGNS
:
The terms, cond~tions, covenants and ~greements set forth herein
shall apply and bind the heirs, executors" administrators, successors
and assigns of the pa~ties hereto. ¡
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19. ENTIRE AGREEMENT,
This Agreement c~ntains the entire ag~eement between the Parties,
and neither party reI es upon any warranty, 'promise, representation, or
agreement not contain d in writing herein.
24. SURVIVABILITY
The Parties ackn~wledge and agree that ¡terms and conditions of the
Agreement shall surv~ve the close of escrdw and remain in full force
and effect. .
25. TIME OF THE ESSENCE
Time is of the e~sence and each party¡ shall promptly execute all
documents necessary tb effectuate the inteht herein and shall perform
in strict accordance ~ith each of the prov~sions herein.
26. AUTHORITY TO BIND
Subject to secti~n 22 above, the partits warrant each to the other
that the person whos$ signature appears 0 its behalf below has the
authority to bind such party to the terms pf this Agreement, and that
by entering into this Agreement, such party!is not thereby in breach of
any other agreement or contract.
IN WITNESS WHEREOF, the Parties have exec4ted this Agreement the day
and year first writteh above. I
GRANTOR: CITY: :
,
CHULA VISTA CENTER, a California CITY OF!CHULA VISTA, a public
partnership agency
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By: By: I
Robert Caplan, Trustee, David D. Rowlands, Jr.
etc., General Partner Its: CifY Manager
APPROVEþ AS TO FORM:
Linda B ¡rtz & Associates
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By: Lihda
D. Bartz, Esq.
Sp~cial Counsel for City
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ATTACHMENT 2
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Agreement betwee~
City of Chula Vista
and
Pacific Relocation Consultants
for
Relocation Consultant Se ices
This agreement ("Agreement"), dated for the purposes of
reference only, and effective as of the date last execute unless another date is otherwise
specified in Exhibit A, Paragraph 1 is between the Ci -related entity as is indicated on
Exhibit A, paragraph 2, as such ("City"), whose busin ss form is set forth on Exhibit A,
paragraph 3, and the entity indicated on the attac ed Exhibit A, paragraph 4, as
Consultant, whose business form is set forth on Exhibi A, paragraph 5, and whose place
of business and telephone numbers are set forth on Ex ibit A, paragraph 6 ("Consultant"),
and is made with reference to the following facts:
Recitals
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Whereas, the City has acquired a new site for t~e location of its main Police
Department facility and must therefore relocate existin businesses on the site prior to
demolition and construction; and, ,
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Wh"e",. the 'peoi,li,ed 001"" of the oo"",tl ,,~iœ' .""i." the! the COy
waive the competitive sel$ction process and engage t e consultant immediately to
meet all necessary time-frames for commencement of demolition and construction; and,
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Whe,"". COO,""," w'oao" aod ,ep'e",ot, f" they "e e'pe,ieeoed aod
staffed in a manner such that they are and can prepar and deliver the services
required of Consultant to City within the time frames h rein provided all in accordance
with the terms and conditions of this Agreement; ,
NOW, THEREFORE, BE IT RESOLVED that thF City and Consultant do hereby
mutually agree as follows: I
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1. Consultant's Duties I
A. General Duties
Consultant shall perform all of the services destribed on the attached Exhibit A,
Paragraph 7, entitled "General Duties"; and, !
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Two Party Agreement - Relocation consultrnt Services Page 1
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4 -d.. <A
B. Scope of Work and Schedule .
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In the process of performing and delivering sai;' "General Duties", Consultant
shall also perform all of the services described in Exhi it A, Paragraph 8, entitled"
Scope of Work and Schedule", not inconsistent with th General Duties, according to,
and within the time frames set forth in Exhibit A, parataPh 8, and deliver to City such
Deliverables as are identified in Exhibit A, Paragraph, within the time frames set forth
therein, time being of the essence of this Agreement. ! he General Duties and the work
and deliverables required in the Scope of Work and S~hedule shall be herein referred
to as the "Defined Services". Failure to complete the ~efined Services by the times
indicated does not, except at the option of the City, opþrate to terminate this
Agreement. I
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C. Reductions in Scope of Work !
City may independently, or upon request from Qonsultant, from time to time
reduce the Defined Services to be performed by the C~nsultant under this Agreement.
Upon doing so, City and Consultant agree to meet in ood faith and confer for the
purpose of negotiating a corresponding reduction in th compensation associated with
said reduction.
D. Additional Services
In addition to performing the Defined Services rlerein set forth, City may require
Consultant to perform additional consulting services rdlated to the Defined Services
("Additional Services"), and upon doing so in writing, iflthey are within the scope of
services offered by Consultant, Consultant shall perform same on a time and materials
basis at the rates set forth in the "Rate Schedule" in E*hibit A, Paragraph 11 (C), unless
a separate fixed fee is otherwise agreed upon. All compensation for Additional
Services shall be paid monthly as billed. .
E. Standard of Care
Consultant, in performing any Services under t~is agreement, whether Defined
Services or Additional Services, shall perform in a mariner consistent with that level of
care and skill ordinarily exercised by members of the ~rofession currently practicing
under similar conditions and in similar locations. :
F. Insurance
Consultant represents that it and its agents, sta~ and subconsultants employed
by it in connection with the Services required to be ren(jered, are protected against the
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Two Party Agreement - Relocation consult~nt Services Page 2
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risk of loss by the following insurance coverages, in th~ following categories, and to the
limits specified, policies of which are issued by Insura ce Companies that have a Best's
Rating of "A, Class V" or better, or shall meet with the pproval of the City:
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Statutory Worker's Compensation Insurance an~ Employer's Liability Insurance
coverage in the amount set forth in the attached Exhib t A, Paragraph 9.
Commercial General Liability Insurance includin Business Automobile
Insurance coverage in the amount set forth in Exhibit ,Paragraph g, combined single
limit applied separately to each project away from pre ises owned or rented by
Consultant, which names City as an Additional Insure ,and which is primary to any
policy which the City may otherwise carry ("Primary C verage"), and which treats the
employees of the City in the same manner as member of the general public
("Cross-liability Coverage"). I
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Errors and Omissions insurance, in the amountiet forth in Exhibit A, Paragraph
g, unless Errors and Omissions coverage is included i the General Liability policy.
G. Proof of Insurance Coverage. I
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(1) Certificates of Insurance. I
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Consultant shall demonstrate proof of co erage herein required, prior to
the commencement of services required under this Ag eement, by delivery of
Certificates of Insurance demonstrating same, and furt er indicating that the policies
may not be canceled without at least thirty (30) days witten notice to the Additional
Insured.
(2) Policy Endorsements Required.
In order to demonstrate the Additional In ured Coverage, Primary
Coverage and Cross-liability Coverage required under Consultant's Commercial
General Liability Insurance Policy, Consultant shall del ver a policy endorsement to the
City demonstrating same, which shall be reviewed and approved by the Risk Manager.
H. Security for Performance.
(1) Performance Bond.
In the event that Exhibit A, at Paragraph 9, indicates the need for
Consultant to provide a Performance Bond (indicated y a check mark in the
parenthetical space immediately preceding the subpar graph entitled "Performance
Two Party Agreement - Relocation Consult nt Services Page 3
4-.2..
Bond"), then Consultant shall provide to the City a pe ormance bond by a surety and in
a form and amount satisfactory to the Risk Manager 0 City Attorney' which amount is
indicated in the space adjacent to the term, "Performa ce Bond", in said Paragraph 19,
Exhibit A.
(2) Letter of Credit.
In the event that Exhibit A, at Paragraph 1 g, indicates the need for
Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical
space immediately preceding the subparagraph entitl "Letter of Credit"), then
Consultant shall provide to the City an irrevocable lett r of credit callable by the City at
their unfettered discretion by submitting to the bank a tter, signed by the City
Manager, stating that the Consultant is in breach of th terms of this Agreement. The
letter of credit shall be issued by a bank, and be in a f rm and amount satisfactory to
the Risk Manager or City Attorney which amount is indicated in the space adjacent to
the term, "Letter of Credit", in said Paragraph 19, Exhi it A.
(3) Other Security
In the event that Exhibit A, at Paragraph 19, indicates the need for
Consultant to provide security other than a Performan e Bond or a Letter of Credit
(indicated by a check mark in the parenthetical space mmediately preceding the
subparagraph entitled "Other Security"), then Consult nt shall provide to the City such
other security therein listed in a form and amount satis actory to the Risk Manager or
City Attorney.
I. Business License
Consultant agrees to obtain a business license rom the City and to otherwise
comply with Title 5 of the Chula Vista Municipal Code.
2. Duties of the City
A. Consultation and Cooperation
City shall regularly consult the Consultant for th purpose of reviewing the
progress of the Defined Services and Schedule therei contained, and to provide
direction and guidance to achieve the objectives of thi agreement. The City shall
permit access to its office facilities, files and records b Consultant throughout the term
of the agreement. In addition thereto, City agrees to p ovide the information, data,
items and materials set forth on Exhibit A, Paragraph 0, and with the further
understanding that delay in the provision of these mat rials beyond 30 days after
Two Party Agreement - Relocation Consult nt Services Page 4
4-r
authorization to proceed, shall constitute a basis for th justifiable delay in the
Consultant's performance of this agreement.
B. Compensation
Upon receipt of a properly prepared billing from Consultant submitted to the City
periodically as indicated in Exhibit A, Paragraph 18, b t in no event more frequently
than monthly, on the day of the period indicated in Ex ibit A, Paragraph 18, City shall
compensate Consultant for all services rendered by C nsultant according to the terms
and conditions set forth in Exhibit A, Paragraph 11, ad acent to the governing
compensation relationship indicated by a "checkmark" next to the appropriate
arrangement, subject to the requirements for retention set forth in paragraph 19 of
Exhibit A, and shall compensate Consultant for out of ocket expenses as provided in
Exhibit A, Paragraph 12.
All billings submitted by Consultant shall contai sufficient information as to the
propriety of the billing to permit the City to evaluate th t the amount due and payable
thereunder is proper, and shall specifically contain the City's account number indicated
on Exhibit A, Paragraph 18 (C) to be charged upon m king such payment.
3. Administration of Contract
Each party designates the individuals ("Contrac Administrators") indicated on
Exhibit A, Paragraph 13, as said party's contract admi istrator who is authorized by
said party to represent them in the routine administrati n of this agreement.
4. Term.
This Agreement shall terminate when the Parti have complied with all
executory provisions hereof.
5. Liquidated Damages
The provisions of this section apply if a Liquidat d Damages Rate is provided in
Exhibit A, Paragraph 14.
It is acknowledged by both parties that time is 0 the essence in the completion
of this Agreement. It is difficult to estimate the amoun of damages resulting from delay
in performance. The parties have used their judgment to arrive at a reasonable amount
to compensate for delay.
Failure to complete the Defined Services within he allotted time period specified
in this Agreement shall result in the following penalty: or each consecutive calendar
Two Party Agreement - Relocation Consult nt Services Page 5
day in excess of the time specified for the completion f the respective work assignment
or Deliverable, the consultant shall pay to the City, or ave withheld from monies due,
the sum of Liquidated Damages Rate provided in Exhi it A, Paragraph 14 ("Liquidated
Damages Rate").
Time extensions for delays beyond the consult nt's control, other than delays
caused by the City, shall be requested in writing to th City's Contract Administrator, or
designee, prior to the expiration of the specified time. Extensions of time, when
granted, will be based upon the effect of delays to the work and will not be granted for
delays to minor portions of work unless it can be sho n that such delays did or will
delay the progress of the work.
6. Financial Interests of Consultant
A. Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Parag ph 15, as an "FPPC filer",
Consultant is deemed to be a "Consultant" for the pur oses of the Political Reform Act
conflict of interest and disclosure provisions, and shall report economic interests to the
City Clerk on the required Statement of Economic Inte ests in such reporting categories
as are specified in Paragraph 15 of Exhibit A, or if non are specified, then as
determined by the City Attorney.
B. Decline to Participate.
Regardless of whether Consultant is designate as an FPPC Filer, Consultant
shall not make, or participate in making or in any way ttempt 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 he compensation promised by
this Agreement.
C. Search to Determine Economic Interests.
Regardless of whether Consultant is designate as an FPPC Filer, Consultant
warrants and represents that Consultant has diligently conducted a search and
inventory of Consultant's economic interests, as the te m is used in the regulations
promulgated by the Fair Political Practices Commissio ,and has determined that
Consultant does not, to the best of Consultant's knowl dge, have an economic interest
which would conflict with Consultant's duties under thi agreement.
D. Promise Not to Acquire Conflicting Interests.
Two Party Agreement - Relocation Consult nt Services Page 6
4- 9
Regardless of whether Consultant is designate as an FPPC Filer, Consultant
further warrants and represents that Consultant will n acquire, obtain, or assume an
economic interest during the term of this Agreement w ich would constitute a conflict of
interest as prohibited by the Fair Political Practices Ac .
E. Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designate as an FPPC Filer, Consultant
further warrants and represents that Consultant will im ediately advise the City
Attorney of City if Consultant learns of an economic in rest of Consultant's which may
result in a conflict of interest for the purpose of the Fai Political Practices Act, and
regulations promulgated thereunder.
F. Specific Warranties Against Economic Inter sts.
Consultant warrants and represents that neithe Consultant, nor Consultant's
immediate family members, nor Consultant's employe s or agents ("Consultant
Associates") presently have any interest, directly or in irectly, whatsoever in any
property which may be the subject matter of the Defin d Services, or in any property
within 2 radial miles from the exterior boundaries of an property which may be the
subject matter of the Defined Services, ("Prohibited In erest"), other than as listed in
Exhibit A, Paragraph 15.
Consultant further warrants and represents that no promise of future
employment, remuneration, consideration, gratuity or ther reward or gain has been
made to Consultant or Consultant Associates in conne tion with Consultant's
performance of this Agreement. Consultant promises 0 advise City of any such
promise that may be made during the Term of this Agr ement, or for 12 months
thereafter.
Consultant agrees that Consultant Associates s all not acquire any such
Prohibited Interest within the Term of this Agreement, r for 12 months after the
expiration of this Agreement, except with the written p rmission of City.
Consultant may not conduct or solicit any busin ss for any party to this
Agreement, or for any third party which may be in con lict with Consultant's
responsibilities under this Agreement, except with the ritten permission of City.
7. Hold Harmless
Consultant shall defend, indemnify, protect and old harmless the City, its
elected and appointed officers and employees, from a d against all claims for
Two Party Agreement - Relocation Consult nt Services Page 7
4-
damages, liability, cost and expense (including withou limitation attorneys' fees) arising
out of the conduct of the Consultant, or any agent or e ployee, subcontractors, or
others in connection with the execution of the work co ered by this Agreement, except
only for those claims arising from the sole negligence r sole willful misconduct of the
City, its officers, or employees. Consultant's indemnifi ation shall include any and all
costs, expenses, attorneys' fees and liability incurred y the City, its officers, agents, or
employees in defending against such claims, whether he same proceed to judgment or
not. Further, Consultant at its own expense shall, upo written request by the City,
defend any such suit or action brought against the Cit , its officers, agents, or
employees. Consultants' indemnification of City shall ot be limited by any prior or
subsequent declaration by the Consultant.
8. Termination of Agreement for Cause
If, through any cause, Consultant shall fail to ful ill in a timely and proper manner
Consultant's obligations under this Agreement, or if C nsultant shall violate any of the
covenants, agreements or stipulations of this Agreem nt, City shall have the right to
terminate this Agreement by giving written notice to C nsultant of such termination and
specifying the effective date thereof at least five (5) da s before the effective date of
such termination. In that event, all finished or unfinish d documents, data, studies,
surveys, drawings, maps, reports and other materials repared by Consultant shall, at
the option of the City, become the property of the City, and Consultant shall be entitled
to receive just and equitable compensation for any wo k satisfactorily completed on
such documents and other materials up to the effectiv date of Notice of Termination,
not to exceed the amounts payable hereunder, and Ie s any damages caused City by
Consultant's breach.
9. Errors and Omissions
In the event that the City Administrator determi es that the Consultants'
negligence, errors, or omissions in the performance of work under this Agreement has
resulted in expense to City greater than would have re ulted if there were no such
negligence, errors, omissions, Consultant shall reimbu se City for any additional
expenses incurred by the City. Nothing herein is inten ed to limit City's rights under
other provisions of this agreement.
10. Termination of Agreement for Convenience of Cit
City may terminate this Agreement at any time nd for any reason, by giving
specific written notice to Consultant of such terminatio and specifying the effective
date thereof, at least thirty (30) days before the effecti e date of such termination. In
that event, all finished and unfinished documents and ther materials described
Two Party Agreement - Relocation Consult nt Services Page 8
4- ,
hereinabove shall, at the option of the City, become C ty's sole and exclusive property.
If the Agreement is terminated by City as provided in t is paragraph, Consultant shall
be entitled to receive just and equitable compensation for any satisfactory work
completed on such documents and other materials to he effective date of such
termination. Consultant hereby expressly waives any nd all claims for damages or
compensation arising under this Agreement except as set forth herein.
11. Assignability
The services of Consultant are personal to the ity, and Consultant shall not
assign any interest in this Agreement, and shall not tr nsfer any interest in the same
(whether by assignment or novation), without prior wri en consent of City. City hereby
consents to the assignment of the portions of the Defi ed Services identified in Exhibit
A, Paragraph 17 to the subconsultants identified there t as "Permitted Subconsultants".
12. Ownership, Publication, Reproduction and Use of Material
All reports, studies, information, data, statistics, forms, designs, plans,
procedures, systems and any other materials or prope ies produced under this
Agreement shall be the sole and exclusive property of City. No such materials or
properties produced in whole or in part under this Agr ement shall be subject to private
use, copyrights or patent rights by Consultant in the U ited States or in any other
country without the express written consent of City. C y shall have unrestricted
authority to publish, disclose (except as may be limite by the provisions of the Public
Records Act), distribute, and otherwise use, copyright r patent, in whole or in part, any
such reports, studies, data, statistics, forms or other m terials or properties produced
under this Agreement.
13. Independent Contractor
City is interested only in the results obtained an Consultant shall perform as an
independent contractor with sole control of the manne and means of performing the
services required under this Agreement. City maintain the right only to reject or accept
Consultant's work products. Consultant and any of the Consultant's agents, employees
or representatives are, for all purposes under this Agr ement, an independent
contractor and shall not be deemed to be an employe of City, and none of them shall
be entitled to any benefits to which City employees ar entitled including but not limited
to, overtime, retirement benefits, worker's compensati n benefits, injury leave or other
leave benefits. Therefore, City will not withhold state r federal income tax, social
security tax or any other payroll tax, and Consultant s all be solely responsible for the
payment of same and shall hold the City harmless wit regard thereto.
Two Party Agreement - Relocation Consult nt Services Page 9
4-3 2--
14. Administrative Claims Requirements and Proced res
No suit or arbitration shall be brought arising ou of this agreement, against the
City unless a claim has first been presented in writing nd filed with the City and acted
upon by the City in accordance with the procedures s t forth in Chapter 1.34 of the
Chula Vista Municipal Code, as same may from time t time be amended, the
provisions of which are incorporated by this reference s if fully set forth herein, and
such policies and procedures used by the City in the i plementation of same.
Upon request by City, Consultant shall meet an confer in good faith with City for
the purpose of resolving any dispute over the terms of this Agreement.
15. Attorney's Fees
Should a dispute arising out of this Agreement result i litigation, it is agreed that the
prevailing party shall be entitled to a judgment against the other for an amount equal to
reasonable attorney's fees and court costs incurred. he "prevailing party" shall be
deemed to be the party who is awarded substantially t e relief sought.
16. Statement of Costs
In the event that Consultant prepares a report 0 document, or participates in the
preparation of a report or document in performing the efined Services, Consultant
shall include, or cause the inclusion of, in said report 0 document, a statement of the
numbers and cost in dollar amounts of all contracts an subcontracts relating to the
preparation of the report or document.
17. Miscellaneous
A. Consultant not authorized to Represent City
Unless specifically authorized in writing by City, Consultant shall have no
authority to act as City's agent to bind City to any cont actual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Sale man
If the box on Exhibit A, Paragraph 16 is marked the Consultant and/or their
principals is/are licensed with the State of California or some other state as a licensed
real estate broker or salesperson. Otherwise, Consult nt represents that neither
Consultant, nor their principals are licensed real estate brokers or salespersons.
C. Notices
Two Party Agreement - Relocation Consult nt Services Page 10
4- 3
All notices, demands or requests provided for 0 permitted to be given pursuant
to this Agreement must be in writing. All notices, dem nds and requests to be sent to
any party shall be deemed to have been properly give or served if personally served
or deposited in the United States mail, addressed to s ch party, postage prepaid,
registered or certified, with return receipt requested, a the addresses identified herein
as the places of business for each of the designated rties.
D. Entire Agreement
This Agreement, together with any other writte document referred to or
contemplated herein, embody the entire Agreement a d understanding between the
parties relating to the subject matter hereof. Neither t is Agreement nor any provision
hereof may be amended, modified, waived or dischar ed except by an instrument in
writing executed by the party against which enforcem nt of such amendment, waiver or
discharge is sought.
E. Capacity of Parties
Each signatory and party hereto hereby warran s and represents to the other
party that it has legal authority and capacity and direct on from its principal to enter into
this Agreement, and that all resolutions or other action have been taken so as to
enable it to enter into this Agreement.
F. Governing LawNenue
This Agreement shall be governed by and cons rued in accordance with the laws
of the State of California. Any action arising under or lating to this Agreement shall
be brought only in the federal or state courts located i 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 hereunde , shall be the City of Chula Vista.
Two Party Agreement - Relocation Consult nt Services Page 11
4 ~cj
JUL. 6.2001 1: 34PI"1 PACIFIC RELOCATION 562 495 (=3'3 1'10.731 F'.13/21
[.",,~ R ArT
¡L)lj"<:!kW"
'. a If---y.
Signature Page
to
Agreement between City of Ch la Vista
and Pacific Reloèation Cons ltants
for Relocation Consulting Se ices
IN WITNESS WHEREOF, City and Consultant ha e executed this Agreement
thereby indicating that they have read and understocd s me, and indicate their full and
complete consent to its terms: '
Dated: ,2001 City of Chura Vi ta
by:
Shirley orton, Mayor
Attest:
Susan Bigelow, City Clerk
Approved as to form:
John M. Kaheny, City Attorney
Dated: Pacific
Exhibit List to Agreement
(X) Exhibit A.
Two Party Agreement - Relocation Consul can Page 12
Exhibit A
to
Agreement betwee
City of Chula Vista
and
Pacific Relocation Cons ltants
2. City-Related Entity:
(X) City of Chula Vista, a municipal chartere corporation of the State of
California ("City")
3. Place of Business for City:
City of Chula Vista,
276 Fourth Avenue,
Chula Vista, CA 91910
4. Consultant: Pacific Relocation Consultants
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
(X ) Corporation
6. Place of Business, Telephone and Fax Number of Consultant:
100 West Broadway, Suite 300
Long Beach, California 90802-4432
Voice Phone (562) S90-8564
Fax Phone (562) 49S-0889
7. General Duties:
Two Party Agreement - Relocation Consult nt Services Page 13
4- 3ÚJ
Provide full-range relocation consultant service for the relocation of businesses
displaced by the new Police Department facility including all-inclusive relocation
implementation services, project management, roperty management and
optional Relocation Plan (as needed.)
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
Due to the nature of relocation consultant servi es, all services must be
completed within a timeframe set by the City an by Highland Partnership, the
design-build consultant for the new Police Dep rtment facility. This timeframe is
not currently set. It is anticipated that all reloca ion services would be completed
by June 30, 2002.
1. Relocation Implementation Service. Provide all-inclusive relocation
field services to 13 commercial ten nts being relocated, including:
a. Conduct personal, on-site i terviews of prospective
displaces to ascertain relo ation needs and special
requirements.
b. Inform displaced business s of available relocation
assistance services and b nefits, and explain relocation
processes.
c. Prepare and distribute Info mation Statements, Notices of
Displacement, gO-Day Noti es to Vacate, and other notices,
as may be required.
d. Assist displaces in locating replacement business sites.
e. Provide on-going advisory ssistance to business displaces,
including lists of qualified overs and vendors.
f. Prepare specifications for t e move and inventory of
personal property, insuring thorough coordination with
Agency staff and/or legal c unsel, that no real property is
included on the personal p operty inventory list.
g. Coordinate the walk-throu h for a minimum of two bids and
move estimates with move s and the displaced business.
h. Monitor the actual move to replacement site and re-
establishment activities, as necessary.
i. Determine eligibility for an proposed amount of relocation
benefits, including actual a d reasonable moving payments,
re-establishment payment, and fixed payments.
Two Party Agreement - Relocation Consult nt Services Page 14
-37
j. Prepare all applicable ben fit claim forms, secure claimant's
signatures on claim forms, and submit claim forms to
Agency for processing and payment.
k. Deliver benefit checks and other appropriate payments to
claimants.
I. Maintain necessary case d cumentation and provide
Agency with periodic standard status reports.
2. Property Management Services:
a. Prepare and deliver rental greements tailored to project
objectives.
b. Collect monthly rent paym nts.
c. Work with or provide (as a propriate) on-site managers.
d. Prepare and deliver Ninety Day notices.
e. Collect keys and verify ab ndonments.
f. Provide utility disconnectio and meter removal.
g. Administer emergency and unsafe condition repairs.
h. Contract building and grou d maintenance as needed.
i. Contract board-up and oth r security services as units
become vacant.
3. Project Management Services:
a. Perform comprehensive ini ial project planning, analysis and
preparation to minimize po entia I legal, financial and
administrative difficulties. I
b. Ad,l,e "d ,~I't the CI~~ the de,elopment "d
implementation of any ad inistrative policies, procedures
and forms necessary for th creation of an effective
relocation program, includi g training of the City's staff as
necessary.
c. Prn,'de ,"golog geoernI1","ltati'" aod prnject
coordination with the City, ocial service agencies,
governmental entities, and designated consultants and
vendors. I
d. Rep,e,eo' the C<y '" oItiz1 ,CO"P moo"""- Pcoje" A""
Committee presentations, earings and other meetings.
e. Provide liaison with public versight agencies such as State
Department of Housing an Community Development,
United States Department f Housing and Urban
i
I
Two Party Agreement - Relocation Consultþnt Services Page 15
I
4-3fS
Development, FAA, FHWAI State Departments of
Transportation. :
4. Relocation Plan and Other Services:
a. Prepare any necessary Relocation Plan(s) as may be
determined to be required..
b. Provide other Relocation services as determined by the City
and Legal Counsel as being necessary for the successful
relocation of tenants and sliJbsequent property management
prior to demolition.
B. Date for Commencement of Consultant Serviices:
(X) Same as Effective Date of Agreement
C. Dates or Time Limits for Delivery of Deliveraþles:
Deliverable No.1: Prepare and distribu~e Information Statements,
Notices of Displacement, gO-Day Notices'to Vacate, and other notices, as
may be required, within the timeframe set by the City and Legal Counsel
(timeframe to be determined.)
Deliverable No.2: Provide property mamagement services during and
after displacees have been relocated and continuing through until
commencement of demolition and delivery of site control to Highland
Partnership for design-build phase (timeframe to be determined.)
Deliverable No.3: If required, prepare R.elocation Plan for displaces
within gO Days of Commencement of Contract.
D. Date for completion of all Consultant services:
June 30, 2002
9. Insurance Requirements:
(X) Statutory Worker's Compensation Insurarnce.
(X) Commercial General Liability Insurance: $1,000,000.
(X) Errors and Omissions insurance: None fìequired (included in Commercial
General Liability coverage).
Two Party Agreement - Relocation Consultant Services Page 16
4-3~
10. Materials Required to be Supplied by City to Consultant:
All leases or other documentation necessary fo{ effective provision of relocation
services. Receipt of leases is hereby acknowledged.
11. Compensation:
This contract will include four separate compon~nts: 1) a single fixed fee for all
inclusive relocation implementation services; 2) a sep~rate single fixed fee for the
optional Relocation Plan; 3) an hourly rate arrangemell1t for project management
services; and 4) a set flat fee for property management, as set forth below:
1) Compensation for All-Inclusive Relocation Implementation Services:
(X) Single Fixed Fee Arrangement.
For performance of all of the Defined Services by Consultant as herein
required, City shall pay a single fixed fee inithe amounts and at the times or
milestones or for the Deliverables set forth below:
Single Fixed Fee Amount: $42,500, payabl~ as follows:
(X) 1. Interim Monthly Advances. ¡The City shall make interim
monthly advances against the compensation due for each
phase on a percentage of comþletion basis for each given
phase such that, at the end of each phase only the
compensation for that phase hj3s been paid. Any payments
made hereunder shall be considered as interest free loans
which must be returned to the City if the Phase is not
satisfactorily completed. If thei Phase is satisfactorily
completed, the City shall receive credit against the
compensation due for that phaße.
2) Compensation for Optional Relocation Alan:
(X) Single Fixed Fee Arrangement.
For performance of all of the Defined Serviqes associated with the Optional
Relocation Plan by Consultant as herein re~uired, City shall pay a single
fixed fee in the amounts and at the times on milestones or for the
Deliverables set forth below:
Two Party Agreement - Relocation Consult~nt Services Page 17
4-<10
Single Fixed Fee Amount: $3,500, payable as follows:
1. Lump-sum payment upon completion þf Optional Relocation Plan.
3) Compensation for Project Management S~rvices:
(X) Hourly Rate Arrangement
For performance of the Project Manageme~t Defined Services by Consultant
as herein required, City shall pay Consulta~t for the productive hours of time
spent by Consultant in the performance of $aid Services, at the rates or
amounts set forth in the Rate Schedule herþin below according to the
following terms and conditions:
(1) (X) Limitation without Further Aut~orization on Time and Materials
Arrangement
At such time as Consultant shall hlave incurred time and materials
equal to $10,000 ("Authorization Limit") fpr Project Management Services
not covered under other sections of this ~ontract, Consultant shall not be
entitled to any additional compensation *'thout further authorization
issued in writing and approved by the Cit . Nothing herein shall preclude
Consultant from providing additional Se ices at Consultant's own cost
and expense.
Rate Schedule
Category of Employee Hourly
of Consultant Name Rate
Corporate Officer Steve Oliver $110.00
Project Manager Vince McGa'^-1 $ 90.00
Relocation Consultant Not Specified! $ 75.00
Technical Support Not Specified! $ 50.00
Admin/Secretarial Not Specified! $ 35.00
4) Compensation for Property Managem4nt Services:
Property Management shall be compens~' ted at $100.00 per month per
occupied space plusan administrative s rcharge of 15% to any required
third party services plus a one-time $125 00 set-up fee for each business
occupant. '
!
Two Party Agreement - Relocation consult~nt Services Page 18
¡
4- 4(
12. Materials Reimbursement Arrangement
I
I
For the cost of out of pocket expenses incurredlby Consultant in the
performance of services herein required, City shall pa* Consultant at the rates or
amounts set forth below: I
(X) None, the compensation includes all costs. I
I
I
13. Contract Administrators: I
I
City: Byron Estes, City Redevelopment Mana~er
276 Fourth Avenue I
Chula Vista, CA 91910
Consultant: Steve Oliver, Vice President i
Pacific Relocation service~'
100 West Broadway, Suite 300
Long Beach, CA 90802-4 32
,
14. Liquidated Damages Rate: Not Applicable I
I
15. Statement of Economic Interests, Consultant Rep~rting Categories, per Conflict of
Interest Code: I
(X) Not Applicable. Not an FPPC Filer.
I
16. ( ) Consultant is Real Estate Broker and/or Salesran
I
17. Permitted Subconsultants: Not Applicable
18. Bill Processing:
A. Consultant's Billing to be submitted for the f411owing period of time:
(X) Monthly
B. Day of the Period for submission of Consult~nt's Billing:
(X) First of the Month
C. City's Account Number: 09200-7999/21591f9100-400000
Two Party Agreement - Relocation Consult~nt Services Page 19
4-t/¿
19. Security for Performance: Not Applicable
Two Party Agreement - Relocation Consult~nt Services Page 20
4-c./3
JOINT COUNCIUFINANCING AUTHORITY \þ'GENDA STATEMENT
Item
Meeting Date 7/10/01
ITEM TITLE: A. Resolution of ~he City Council of the City
of Chula Vista Approving tht Report of the Assessment
Engineer and Confirmin Reassessments within
Reassessment District No.2 01-1.
B. Resolution of ~he City Council of the City
of Chula Vista Approving th¡ Report of the Assessment
Engineer and Confirmin Reassessments within
Reassessment District No.2 01-2.
C. Resolution of ~he City Council of the City
of Chula Vista AuthoriZi~9 and Providing for the
Issuance of Limited Oblig tion Refunding Bonds for
Reassessment District 2001-~, Approving as to Form the
Bond Indenture and Acqulired Obligations Purchase
Agreement, and Authorilzing Other Actions in
Connection Therewith.
D. Resolution of ~he City Council of the City
of Chula Vista AuthoriZi~ and Providing for the
Issuance of Limited Oblig tion Refunding Bonds for
Reassessment District 2001 ,Approving as to Form the
Bond Indenture and Acqulired Obligations Purchase
Agreement, and Authorilzing Other Actions in
Connection Therewith.
E. Resolution of t~e Board of Directors of the
Chula Vista Public Financin~ Authority Authorizing the
Issuance of Refunding Reve~ue Bonds, Approving as to
Form the Indenture of Trust, Bond Purchase Contract,
Acquisition Obligations. Purchase Agreement,
Preliminary Official Statment, and Continuing
Disclosure Agreement, and. uthorizing Other Actions in
Connection Therewith.
SUBMITTED BY: Deputy City Manager Powell (
REVIEWED BY: City Manager¿'~v ~N (4/$ths Vote: Yes - No---.2L)
I v-
/""
Page 2, Item
Meeting Date 7/10/01
SUMMARY:
On February 27, 2001, the City Council approved a resolution making
preliminary determinations and declaring their intfntion to issue bonds to refund
the outstanding improvement bonds issued for, several assessment districts
ordering a report thereon, and approving contracts with bond counsel and
underwriting firms.
The Council is now being asked to approve the reassessment reports, confirm
the reassessments, authorize the sale of refundirg bonds to the Authority, and
approve other related documents and actions. -¡the Authority is being asked to
authorize the sale of bonds for the purpose of p(Jrchasing the refunding bonds
of the City, and to approve other related documßnts and actions. All of these
actions are recommended with the sole purpose ¡of achieving savings in annual
assessments for property owners within the subject districts.
RECOMMENDATION: Approve Resolutions A !through D of the City Council
and approve Resolution E of the Chula Vista Public Financing Authority.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
On April 4, 1 995, the Council/Agency approved t~e formation of the Chula Vista
Financing Authority along with other related i actions in furtherance of a
refinancing of the outstanding debt for four' assessment districts. That
transaction was successful in reducing the sp~cial assessment debt of the
property owners in those districts.
On February 27, 2001, the City Council a!i>proved a resolution making
preliminary determinations and declaring intention to issue bonds to refund the
outstanding improvement bonds issued for sev$ral other assessment districts
(88-1 Eastlake Business Park, 90-1 Salt Creek t 90-2 Otay Valley Road, 90-3
Eastlake Greens, 91-1 Telegraph Canyon Road; 92-2 Autopark, 94-1 Eastlake
Greens II) ordering a report thereon, and approving contracts with bond
counsel and underwriting firms (copy attached). : Upon a more thorough review
of each district, it was found that legal restriq:tions exist which preclude a
refunding of Assessment District 94-1, Eastlake $reens II at this time.
In order to accomplish the refinancing, a reasse~sment of properties is required
pursuant to a reassessment report. Since this g¡roup of districts includes some
districts with primarily commercial property (8j-1, 90-2, & 92-2), it is being
recommended that the refinancing be compl ted by forming two separate
reassessment districts in order to insulate the rE1sidential property owners from
any impact from potential future delinquencies o~ the commercial property.
Page 3, Item
Meeting Date 7/10/01
Due in part to lower interest rates, improved development status, and to
savings derived from refinancing existing debt ¡for several districts using a
pooling concept, it is projected that average anriual savings of approximately
12.4 percent can be achieved for property owners!as the result of a refunding.
As outlined in the February agenda item, the r~quirements of the refunding
process include reassessing properties in accordance with a reassessment
report, the City issuing refunding bonds and sellil1g them to the Authority, and
finally, the Authority issuing revenue bonds with tile proceeds used to purchase
the refunding bonds of the City. Although appearilng somewhat convoluted, this
process has been widely used for the same purppse by many entities over the
last few years, including the City of Chula Vista in 1995.
In the first two resolutions the Council is being asked to adopt the
Reassessment Report prepared by the firm of MuhiFinancial, a copy of which is
available in the Clerk's office, and to confirm arid order the reassessment of
properties pursuant to summary actions. This action is available to Council
without public hearing under Section 9525 of the Streets and Highways Code
as long as (1) each annual assessment is reduceld as a result, (2) the maturity
of the bonds is not extended, and (3) the principal amount of the new
assessments is less than the unpaid princiþal amount of the original
assessment All three tests are met in the proposed transaction.
In the third and forth resolutions the Council is being asked to authorize the
issuance of the refunding bonds in an amount nOt to exceed the amount of the
reassessments, authorize the sale of these bond~ to the Authority, and approve
related documents and actions.
The Authority is being asked to authorize the sale! of bonds to the underwriter in
an amount sufficient to provide funds to purcha¡je the City's refunding bonds,
subject to the underwriter's discount being no linore than 2 percent and the
interest rate being less than 7 percent The prqjected net interest cost to the
Authority's bonds is 4.92 percent, with coupons !ranging from 2.85 percent to
6.25 percent In addition, the Authority is being éjlsked to approve related legal
documents, copies of which are available in the q;lerk's office, and to authorize
staff to take all necessary actions to consummateithe transaction.
FISCAL IMPACT:
The only fiscal impact to the City is a small amo~nt of reimbursement revenue
for staff costs incurred for the refunding estimatdd to amount to approximately
$25,000. All costs of issuance, such as the fe~s for Bond Counsel ($60,000
est), Financial Advisor ($35,200), underwriting discount ($290,600 est), and
reassessment report ($28,400) will be paid from the debt proceeds and
Page 4, Item
Meeting Date 7/10/01
factored into the reduced annual assessments. !Net present value savings to
property owners is projected to be approximately ~4.4 million.
RESOLUTION NO. -
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA, CALIFORNIA, 4PPROVING THE
REPORT OF THE ASSESSMENT ENGINEER AND
CONFIRMING REASSESSMENTS WITHIN
REASSESSMENT DISTRICT NO. 200!;1
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, did
previously undertake proceedings and confinned assessnj.ents in certain assessment districts
pursuant to the tenus and provisions of the "Municipal'Improvement Act of 1913", being
Division 12 of the Streets and Highways Code of the State of California, said special assessment
districts known and designated as:
Assessment District No. 90-1 (Salt Creek I) ("AD No. 90-1 ");
Assessment District No. 90-3 (Eastlake Greens - Phase I); and
Assessment District No. 91-1 (Telegraph Canyon Road - Ph~se II) ("AD No. 91-1 "),
(hereinafter referred to collectively as the "Assessment Districts"); and,
WHEREAS, improvement bonds representing tlje unpaid assessments within said
Assessment Districts (collectively, the "Improvement Bcinds") were issued and sold in the
manner provided in the "Improvement Bond Act of 1915",¡being Division 10 of the Streets and
Highways Code of the State of California; and,
WHEREAS, at this time, as a result of favorabld interest rate conditions within the
municipal bond market, this legislative body has initiated: proceedings to reassess the parcels
within the Assessment Districts and to refund all outstaI).ding Improvement Bonds from the
proceeds of refunding bonds to be issued pursuant to the "Refunding Act of 1984 for 1915
Improvement Act Bonds", being Division 11.5 of the Streets and Highways Code of the State of
California (the "Reassessment and Refunding Act"), said r~assessment district to be designated
as Reassessment District No. 2001-1 (the "Reassessment District"); and,
WHEREAS, this legislative body has previously ordered the preparation of an
Assessment Engineer's Report (the "Preliminary Assessment Engineer's Report") pursuant to the
Reassessment and Refunding Act, said Report to generally contain the following:
A. A schedule setting forth the unpaid principal and irjterest on the Improvement Bonds of
the Assessment Districts to be refunded and the total I amounts thereof;
B. The total estimated principal amount of the reassessment and of the refunding bonds and
the maximum interest rate thereon, together with an ¡estimate of costs of the reassessment
and of issuing the refunding bonds, including all cosis of issuing the refunding bonds;
I
C. The Auditor's Record showing the schedule of the þrincipal installments and interest on
all unpaid original assessments for the Assessm(jnt Districts and the total amounts
thereof;
D. The estimated amount of each reassessment, identified by reassessment number
corresponding to the reassessment number on the reassessment diagram prepared for the
Reassessment District, together with a proposed Auditor's Record for the reassessment;
E. A reassessment diagram showing the Reassessm~nt District and the boundaries and
dimensions of the subdivisions ofland within the Rel1ssessment District; and,
WHEREAS, this legislative body has now received and considered the Preliminary
Assessment Engineer's Report and is ready to proceed to make certain findings and approve the
Preliminary Assessment Engineer's Report; and
WHEREAS, after the completion of all improvements and the payment of all claims from
the Improvement Funds established for AD No. 90-1 and AD No. 91-1, a surplus remains in each
such Improvement Fund and the City Council desires to determine the amount of such surplus
and apply such surplus in accordance with the provisions of Streets and Highways Code Section
10427 to call outstanding bonds issued for AD No. 90-1 and AD No. 91-1, as applicable.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. The above recitals are all true and correct.
SECTION 2. The Preliminary Assessment Engineer's Report as presented to this City
Council is hereby approved, and it is hereby determined by this City Council that if the refunding
bonds proposed to be issued for the Reassessment District are issued and sold with an
underwriter's discount and at interest rates not to exceed those upon which the Preliminary
Assessment Engineer's Report was based, the following coQditions will be satisfied:
A. Each estimated annual installment of principal and interest on the reassessment
will be less than the corresponding annual inistallment of principal and interest on
the portion of the original assessment bein$ superseded and supplanted by the
same percentage for all subdivisions of land within the Assessment Districts;
B. The number of years to maturity of all refunding bonds will be no more than the
number of years to the last maturity of the Injprovement Bonds;
C. The principal amount of the reassessment 01). each subdivision of land within the
Reassessment District will be less than the cdrresponding unpaid principal amount
of the portion of the original assessment being superseded and supplanted by the
same percentage for each subdivision ofland!within the Assessment Districts; and
D. The reassessments, as set forth in the Preliminary Assessment Engineer's Report,
shall not be deemed to be an assessment within the meaning of, and may be
ordered without compliance with the procedljral requirements of, Article XIIID of
the Constitution ofthe State ofCalifomia.
2
Based upon the foregoing determinations, this City Counqil hereby approves and confirms the
reassessments for the refunding bonds and the contributions from the existing funds of the
Assessment Districts, all as set forth in the Preliminary Assessment Engineer's Report, and a
copy of this Resolution shall be entered upon the minutes ofthis meeting of the legislative body.
The reassessments and the Preliminary Assessment Engiþeer's Report may be adjusted and
finalized upon the establjshment of the final pricing for the !sale of the refunding bonds provided
that such principal amount of the reassessment on ea¡;h subdivision of land within the
Reassessment District will be less than the corresponding uj1paid principal amount of the portion
of the original assessment being superseded and supplanted by the same percentage for each
subdivision of land within the Assessment Districts.
SECTION 3. This City Council hereby authorize~ the issuance and sale of refunding
bonds to represent all unpaid reassessments and said refun~ing bonds shall bear interest at a rate
or rates not to exceed the interest rates set forth in the PreliJt¡inary Assessment Engineer's Report
for such refunding bonds, and shall be issued in the manner as provided by the Reassessment and
Refunding Act. The last maturity of said refunding bonds ~hall not exceed the number of years
to the last maturity of the Improvement Bonds.
SECTION 4. The final reassessment, together wit~ the reassessment diagram, as shall
be set forth in a final Assessment Engineer's Report to be rrepared following the pricing of the
refunding bonds and an execution of a bond purchase agreement for the sale of the refunding
bonds, shall be recorded in the Office of the Superintendent iof Streets upon (a) the running of the
limitations period specified in Section 9707 of the Reasses~ment and Refunding Act without the
filing of an action to challenge the validity of the reassessm~nt and refunding proceedings and/or
the issuance of the refunding bonds and (b) the execution @f a bond purchase agreement with a
purchase price and at interest rates not to exceed those upob which the Preliminary Assessment
Engineer's Report is based. Immediately thereafter a copy bf the reassessment diagram shall be
filed in the Office of the County Recorder and a Notic( of Reassessment, referencing said
diagram, shall be recorded in the Office of the County RecQrder of the County of San Diego (the
"County"), all pursuant to the provisions of Division 4.5 oftihe Streets and Highways Code of the
State of California, and specifically Section 3114. Upon th~ recordation, the reassessments shall
become liens upon the various parcels of property and land assessed as shown on the
reassessment diagram.
From and after the date of such recordation and filil1g, the assessments originally levied
shall be superseded and supplanted. The lien of the origin~l assessments is not superseded and
supplanted as to any unpaid installments of the assessments originally levied which are now
delinquent and the penalties and interest, if any, thereon. Amounts, if any, received from the
payment of delinquent assessments and the penalties and iinterest thereon, excluding attorney's
fees and costs and post-judgment interest, if any, shall be d~posited into the redemption fund for
the refunding bonds.
SECTION 5. This City Council hereby determin~s and declares the existence of a
surplus in the Improvement Funds established for AD No. 9P-1 and AD No. 91-1 in the amounts
set forth in the Preliminary Assessment Engineer's Report aj'¡d, pursuant to Streets and Highways
Code Sections 10427(d) and 10427.1, the City Council diIlects that such surplus be utilized to
call bonds issued for each respective assessment district; prqvided, however, where an individual
3
assessment, or any principal installment thereof for a parcel,or parcels, has been paid in cash, the
credit allocable to the parcel or parcels shall be returned in þash to the person or persons owning
such parcel or parcels.
SECTION 6. This City Council hereby determine$ and declares that the City will not
obligate itself to advance available funds from the City treasury to cure any deficiency that may
occur in the bond redemption fund for the refunding bonds.
SECTION 7. A copy of this Resolution confirming the reassessments, which
reassessments shall constitute the security for the refunding! bonds, shall be filed in the Office of
the Treasurer, and the Treasurer shall keep the record $howing the several installments of
principal and interest on the reassessments which are to be dollected each year during the term of
said refunding bonds. An annual portion of each reassess~ent, together with annual interest on
said reassessment, shall be payable in the same manner ~d at the same time and in the same
installment as the general property taxes of the County and shall be payable and become
delinquent at the same time and in the same proportionate amount. Each year the annual
reassessment installments shall be submitted to the County Auditor for purposes of collection,
and the County Auditor shall, at the close of the tax collecting season, promptly render to the
Treasurer a detailed report showing the amount of such reassessment installments, interest,
penalties and percentages so collected.
SECTION 8. This resolution shall become effective upon its adoption.
PREPARED BY: APPROVED AS TO FORM:
Robert Powell John Kaheny
Deputy City Manager City Attorney
4
RESOLUTION NO. -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, APPROVING THE REPORT OF
THE ASSESSMENT ENGINEER AND CONFIRMING
REASSESSMENTS WITHIN REASSESSMENT DISTRICT NO.
2001-2
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, did
previously undertake proceedings and confirmed assessments in certain assessment districts pursuant to
the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets
and Highways Code of the State of California, said special assessment districts known and designated
as:
Assessment District No. 88-1 (Otay Lakes Road, Phase I);
Assessment District No. 90-2 (Otay Valley Road); and
Assessment District No. 92-2 (Auto Park),
(hereinafter referred to collectively as the "Assessment Districts"); and,
WHEREAS, improvement bonds representing the unpilid assessments within said Assessment
Districts (collectively, the "Improvement Bonds") were issued and sold in the manner provided in the
"Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of
California; and,
WHEREAS, at this time, as a result of favorable interest rate conditions within the municipal
bond market, this legislative body has initiated proceedings to reassess the parcels within the
Assessment Districts and to refund all outstanding Improvement Bonds from the proceeds of refunding
bonds to be issued pursuant to the "Refunding Act of 1984 for 1915 Improvement Act Bonds", being
Division 11.5 of the Streets and Highways Code of the State of California (the "Reassessment and
Refunding Act"), said reassessment district to be designated as Reassessment District No. 2001-2 (the
"Reassessment District"); and,
WHEREAS. this legislative body has previously ordered the preparation of an Assessment
Engineer's Report (the "Preliminary Assessment Engineer's R¡;port") pursuant to the Reassessment and
Refunding Act, said Report to generally contain the following:
A. A schedule setting forth the unpaid principal and interest on the Improvement Bonds of the
Assessment Districts to be refunded and the total amounts thereof;
B. The total estimated principal amount of the reassessment and of the refunding bonds and the
maximum interest rate thereon, together with an estimate of costs of the reassessment and of
issuing the refunding bonds, including all costs of issuing the refunding bonds;
I
C. The Auditor's Record showing the schedule of the principal installments and interest on all
unpaid original assessments for the Assessment Districts and the total amounts thereof;
D. The estimated amount of each reassessment, identified by reassessment number corresponding to
the reassessment number on the reassessment diagram prepared for the Reassessment District,
together with a proposed Auditor's Record for the reassessment;
E. A reassessment diagram showing the Reassessment District and the boundaries and dimensions
of the subdivisions ofland within the Reassessment District; and,
WHEREAS, this legislative body has now received and considered the Preliminary Assessment
Engineer's Report and is ready to proceed to make certain findings and approve the Preliminary
Assessment Engineer's Report.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION I. The above recitals are all true and correct.
SECTION 2. The Preliminary Assessment Engineer's Report as presented to this City Council
is hereby approved, and it is hereby determined by this City Council that if the refunding bonds
proposed to be issued for the Reassessment District are issued and sold with an underwriter's discount
and at interest rates not to exceed those upon which the Preliminary Assessment Engineer's Report was
based, the following conditions will be satisfied:
A. Each estimated annual installment of principal and interest on the reassessment will be
less than the corresponding annual installment of principal and interest on the portion of
the original assessment being superseded and supplanted by the same percentage for all
subdivisions ofland within the Assessment Districts;
B. The number of years to maturity of all refunding bonds will be no more than the nwnber
of years to the last maturity of the Improvement Bonds;
C. The principal amount of the reassessment on each subdivision of land within the
Reassessment District will be less than the corresponding unpaid principal amount of the
portion of the original assessment being superseded and supplanted by the same
percentage for each subdivision ofland within the Assessment Districts; and
D. The reassessments, as set forth in the Preliminary Assessment Engineer's Report, shall
not be deemed to be an assessment within the meaning of, and may be ordered without
compliance with the procedural requirements of, Article XIIID of the Constitution of the
State of California.
Based upon the foregoing detenninations, this City Council hereby approves and confinns the
reassessments for the refunding bonds and the contributions from the existing funds of the Assessment
Districts, all as set forth in the Preliminary Assessment Engineer's Report, and a copy of this Resolution
shall be entered upon the minutes of this meeting of the legislative body. The reassessments and the
2
Preliminary Assessment Engineer's Report may be adjusted and finalized upon the establishment of the
final pricing for the sale of the refunding bonds provided that such principal amount of the reassessment
on each subdivision of land within the Reassessment District will be less than the corresponding unpaid
principal amount of the portion of the original assessment being superseded and supplanted by the same
percentage for each subdivision ofland within the Assessment Districts.
SECTION 3. This City Council hereby authorizes the issuance and sale of refunding bonds to
represent all unpaid reassessments and said refunding bonds shall bear interest at a rate or rates not to
exceed the interest rates set forth in the Preliminary Assessment Engineer's Report for such refunding
bonds, and shall be issued in the manner as provided by the Reassessment and Refunding Act. The last
maturity of said refunding bonds shall not exceed the number of years to the last maturity of the
Improvement Bonds.
SECTION 4. The final reassessment, together with the reassessment diagram, as shall be set
forth in a final Assessment Engineer's Report to be prepared following the pricing of the refunding
bonds and an execution of a bond purchase agreement for the sale of the refunding bonds, shall be
recorded in the Office of the Superintendent of Streets upon (a) the running of the limitations period
specified in Section 9707 of the Reassessment and Refunding Act without the filing of an action to
challenge the validity of the reassessment and refunding proceedings and/or the issuance of the
refunding bonds and (b) the execution of a bond purchase agreement with a purchase price and at
interest rates not to exceed those upon which the Preliminary Assessment Engineer's Report is based.
Immediately thereafter a copy of the reassessment diagram shall be filed in the Office of the County
Recorder and a Notice of Reassessment, referencing said diagram, shall be recorded in the Office of the
County Recorder of the County of San Diego (the "County"), all pursuant to the provisions of Division
4.5 of the Streets and Highways Code of the State of California, and specifically Section 3114. Upon
the recordation, the reassessments shall become liens upon the various parcels of property and land
assessed as shown on the reassessment diagram.
From and after the date of such recordation and filing, the assessments originally levied shall be
superseded and supplanted. The lien of the original assessments is not superseded and supplanted as to
any unpaid installments of the assessments originally levied which are now delinquent and the penalties
and interest, if any, thereon. Amounts, if any, received from the payment of delinquent assessments and
the penalties and interest thereon, excluding attorney's fees and costs and post-judgment interest, if any,
shall be deposited into the redemption fund for the refunding bonds.
SECTION 5. This City Council hereby determines and declares that the City will not obligate
itself to advance available funds from the City treasury to cure any deficiency that may occur in the
bond redemption fund for the refunding bonds.
3
SECTION 6. A copy of this Resolution confinning the reassessments, which
reassessments shall constitute the security for the refunding bonds, shall be filed in the Office of
the Treasurer, and the Treasurer shall keep the record showing the several installments of
principal and interest on the reassessments which are to be collected each year during the tenn of
said refunding bonds. An annual portion of each reassessment, together with annual interest on
said reassessment, shall be payable in the same manner and at the same time and in the same
installment as the general property taxes of the County and shall be payable and become
delinquent at the same time and in the same proportionate amount. Each year the annual
reassessment installments shall be submitted to the County Auditor for purposes of collection,
and the County Auditor shall, at the close of the tax collecting season, promptly render to the
Treasurer a detailed report showing the amount of such reassessment installments, interest,
penalties and percentages so collected.
SECTION 7. This resolution shall become effective upon its adoption.
PREPARED BY: APPROVED AS TO FORM:
Robert Powell John Kaheny
Deputy City Manager City Attorney
4
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA, CALIFORNIA, AUTHORIZING AND PROVIDING FOR THE
ISSUANCE OF LIMITED OBLIGA TION REFUNDING BONDS FOR
REASSESSMENT DISTRICT NO. 2001-1, APPROVING AS TO FORM
THE BOND INDENTURE AND ACQUIRED OBLIGATIONS
PURCHASE AGREEMENT, AND AUTHORIZING OTHER ACTIONS
IN CONNECTION THEREWITH
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has undertaken
proceedings pursuant to the "Refunding Act of 1984 for 1915 Improvement Act Bonds" (the "Reassessment and
Refunding Act"), being Division 11.5 of the Streets and Highways Code of the State of California, and has
previously adopted a resolution approving an Assessment Engineer's Report prepared and submitted pursuant to
the provisions of the Reassessment and Refunding Act (the "Preliminary Assessment Engineer's Report") and
conditionally confirming reassessments upon lands within a reassessment district known and designated as
Reassessment District No. 200 I-I (the "Reassessment District"); and,
WHEREAS, such proceedings provide for the issuance of Limited Obligation Refunding Bonds (defined
below) pursuant to the Reassessment and Refunding Act to represent the unpaid reassessments within such
Reassessment District; and,
WHEREAS, at this time, but subject to the final confirmation of the reassessments to be incorporated in
a final Assessment Engineer's Report and the recordation of the reassessment diagram and notice of
reassessment, this legislative body desires to set forth all formal terms and conditions relating to the issuance and
sale of such Limited Obligation Refunding Bonds; and,
WHEREAS, a portion of the proceeds of the Limited Obligation Refunding Bonds shall be used to retire,
in advance of their scheduled maturities, certain outstanding improvement bonds of the City designated as
follows:
1. City of Chula Vista Assessment District No. 90-1 (Salt Creek I) Limited Obligation Improvement
Bonds;
2. City of Chula Vista Assessment District No. 90-3 (Eastlake Greens - Phase I) Limited Obligation
Improvement Bonds; and
3. City of Chula Vista Assessment District No. 91-1 (Telegraph Canyon Road - Phase II) Limited
Obligation Improvement Bonds,
(collectively, the "Prior Bonds"); and
WHEREAS, in order to provide the most cost effective refunding of the Prior Bonds and the City of
Chula Vista Reassessment District No. 2001-2 Limited Obligation Refunding Bonds (the "2001-2 Limited
Obligation Refunding Bonds"), the City Council desires and requests that the Chula Vista Public Financing
Authority (the "Authority") issue, sell and deliver its Refunding Revenue Bonds (2001 Assessment Districts
Refinancing) Series A Senior Lien Bonds and its Refunding Revenue Bonds, (2001 Assessment Districts
Refinancing) Series B Subordinate Lien Bonds in an aggregate principal amount not to exceed $30,000,000
1
(collectively, the "Authority Bonds") to provide funds to purchase the Limited Obligation Refunding Bonds and
the 200 1-2 Limited Obligation Refunding Bonds;
WHEREAS, for the purposes of the sale and delivery ofthe Limited Obligation Refunding Bonds, there
are now on file with the City Clerk copies of the forms of the Bond Indenture by and between the City and U.S.
Bank Trust National Association, as fiscal agent, establishing the terms and conditions pertaining to the issuance
of the Limited Obligation Improvement Bonds (the "Bond Indenture"); the Acquired Obligations Purchase
Agreement by and between the Authority and the City related to the sale of the Limited Obligation Refunding
Bonds (the "Acquired Obligations Purchase Agreement"); the Escrow Agreement by and between the City and
U.S. Bank Trust National Association, as escrow agent (the "Escrow Agreement"); the Preliminary Official
Statement related to the Authority Bonds (the "Preliminary Official Statement"); the Bond Purchase Contract
among the Authority, the City and Stone & Youngberg LLC, as the purchaser of the Authority Bonds (the
"Bond Purchase Contract"); and the Continuing Disclosure Agreement among the Authority, the City and U.S.
Bank Trust National Association. as dissemination agent (the "Continuing Disclosure Agreement"), and
reference is hereby made thereto for further particulars;
WHEREAS, this City Council has reviewed and considered such Bond Indenture, Acquired Obligations
Purchase Agreement, Escrow Agreement, Preliminary Official Statement, Bond Purchase Contract and
Continuing Disclosure Agreement and finds those documents suitable for approval, subject to the conditions set
forth in this resolution; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have been
performed precedent to and in the issuance of the Limited Obligation Refunding Bonds and the levy of the
reassessments as contemplated by this resolution and the documents referred to herein exist, have happened and
have been performed or have been ordered to have been preformed in due time, form and manner as required by
the laws of the State of Caljfomia, including the Reassessment and Refunding Act.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Reassessment and Refunding Act, this Resolution and
the Bond Indenture (hereafter defined), limited obligation refunding bonds of the City for the Reassessment
District designated as "City of Chula Vista Reassessment District No. 200 I -1 Limited Obligation Refunding
Bonds" (the "Limited Obligation Refunding Bonds") in an aggregate principal amount not to exceed the unpaid
reassessments are hereby authorized to be issued. The date, manner of payment, interest rate or rates, interest
payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of
redemption and other terms, covenants and conditions ofthe Bonds shall be as provided in the Bond Indenture as
finally executed.
SECTION 3. Authorization and Conditions. The City Manager of the City or the Deputy City Manager
and each of their specified designees (the "Authorized Officers"), acting for and on behalf of the City, are, and
each of them is, hereby authorized and directed to execute and deliver the various documents and instruments
described in this Resolution with such changes, insertions and omissions as the Authorized Officer executing the
same may require or approve as being in the best interests of the City subject to any limiting conditions
contained herein and further subject to the approval thereof as to form by the City Attorney or his specified
designee and Best Best & Krieger LLP, the City's bond counsel. The approval of such additions or changes
2
shall be conclusively evidenced by the execution and delivery of such documents or instruments by the
Authorized Officer.
SECTION 4. Bond Indenture. The form of Bond Indenture with respect to the Limited Obligation
Refunding Bonds on file in the City Clerk's officer is hereby approved.
SECTION 5. Sale of Limited Obligation Refunding Bonds. This City Council hereby authorizes and
approves the sale of the Limited Obligation Refunding Bonds by negotiation to the Authority. The form of the
Acquired Obligations Purchase Agreement on file in the City Clerk's office is hereby approved. Notwithstanding
the foregoing, the authorization to execute the Acquired Obligations Purchase Agreement is subject to the
satisfaction of the following conditions precedent (a) that the aggregate principal amount of the Limited
Obligation Refunding Bonds is equal to or less than the aggregate amount ofthe unpaid reassessments within the
Reassessment District. (b) that the purchase price of the Limited Obligation Refunding Bonds does not exceed
the purchase price thereof upon which the Preliminary Assessment Engineer's Report was based, (c) that the
annual interest rate on the Limited Obligation Improvement Bonds shall not exceed annual interest rate thereon
upon which the Preliminary Assessment Engineer's Report was based and (d) that the final maturity of the
Limited Obligation Refunding Bonds shall not be later than September 2,2017.
SECTION 6. Escrow Agreement. The form of the Escrow Agreement on file in the City Clerk's office
is hereby approved.
SECTION 7. Approval of Preliminary Official Statement and Final Official Statement. The form of
Preliminary Official Statement on file in the office of the City Clerk is hereby approved. The Authorized
Officers, acting for and on behalf of the City, are, and each of them is, hereby authorized and directed to approve
such changes. insertions and omissions therejn as are necessary to enable such Authorized Officer to certify on
behalf of the City that the approved Preliminary Official Statement is deemed final as of its date except for the
omission of certain information as permitted by Section 240.15c2-12(b)(l) of Title 17 of the Code of Federal
Regulations. The Authorized Officers, acting for and on behalf of the City, are, and each of them is further
authorized and directed to cause the City, together with the Authority, to bring the Preliminary Official
Statement into the form of a final official statement (the "Final Official Statement") and to execute a statement
that the facts contained in the Final Official Statement, and any supplement or amendment thereto (which shall
be deemed an original part thereof for the purpose of such statement) were, at the time of sale of the Revenue
Bonds and the Limited Obligation Refunding Bonds, true and correct in all material respects and that the Final
Official Statement did not, on the date of sale of the Revenue Bonds and the Limited Obligation Refunding
Bonds, and does not, as of the date of delivery of the Revenue Bonds and the Limited Obligation Refunding
Bonds, contain any untrue statement ofa material fact with respect to the City. the Reassessment District or the
Limited Obligation Refunding Bonds or omit to state material facts with respect to the City, the Reassessment
District or the Limited Obligation Refunding Bonds required be stated where necessary to make any statement
made therein not misleading in the light of the circumstances under which it was made.
SECTION 8. Continuing Disclosure Agreement. The form of the Continuing Disclosure Agreement on
file in the office of the City Clerk is hereby approved.
SECTION 9. Costs of Issuance. "Designated costs of issuing the refunding bonds" for purposes of
Subsection 9600(b) and Section 9614 of the Reassessment and Refunding Act are the items specified in
paragraphs (I) through and including (5) of subsection (a) of Section 9600 of the Reassessment and Refunding
Act, and "Costs of Issuance" as such phrase is used in the Bond Indenture shall mean such designated costs of
issuing the Limited Obligation Refunding Bonds.
3
SECTION 10. Bonds Prepared and Delivered. Upon the execution of the Acquired Obligations
Purchase Agreement, the Limited Obligation Refunding Bonds shall be prepared, authenticated and delivered,
all in accordance with the applicable terms of the Reassessment and Refunding Act and the Bond Indenture, and
the Authorized Officers, and each of them, and other responsible City officials are hereby authorized and
directed to take such actions as are required under the Acquired Obligations Purchase Agreement and the Bond
Indenture to complete all actions required to evidence the delivery of the Limited Obligation Refunding Bonds
upon the receipt of the purchase price thereof from the Authority.
SECTION I I. Annual Reassessment Installments. A copy of the resolution confinning the
reassessments and the reassessments, which reassessments shall constitute the security for the Limited
Obligation Refunding Bonds, shall be delivered to the Treasurer and the Treasurer shall keep or cause to be kept
the record showing the several installments of principal and interest on the reassessments which are to be
collected each year during the tenn of the Bonds. An annual portion of each reassessment, together with annual
interest on said reassessment, shall be payable in the same manner and at the same time and in the same
installment as the general property taxes of the County of San Diego and shall be payable and become
delinquent at the same time and in the same proportionate amount. Each year the annual installments shall be
submitted to the County Auditor for purposes of collection.
SECTION 12. Actions. All actions heretofore taken by the officers and agents of the City with respect
to the establishment of the Reassessment District and the sale and issuance of the Limited Obligation Refunding
Bonds are hereby approved, confinned and ratified, and the proper officers of the City are hereby authorized and
directed to do any and all things and take any and all actions and execute any and all certificates, agreements,
contracts. and other documents, which they, or any of them, may deem necessary or advisable in order to
consummate the lawful issuance and delivery ofthe Limited Obligation Refunding Bonds in accordance with the
Reassessment and Refunding Act, this Resolution, the Bond Indenture, the Acquired Obligations Purchase
Agreement, the Escrow Agreement, the Preliminary Official Statement, the Bond Purchase Contract, the
Continuing Disclosure Agreement and any certificate, agreement, contract, and other document described in the
documents herein approved.
SECTION 13. Effective Date. This resolution shall take effect from and after its adoption.
PREPARED BY: APPROVED AS TO FORM:
Robert Powell John Kaheny
Deputy City Manager City Attorney
4
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA, CALIFORNIA, AUTHORIZING AND
PROVIDING FOR THE ISSUANCE OF LIMITED OBLIGATION
REFUNDING BONDS FOR REASSESSMENT DISTRICT NO.
2001-2, APPROVING AS TO FORM THE BOND INDENTURE
AND ACQUIRED OBLIGATIONS PURCHASE AGREEMENT,
AND AUTHORIZING OTHER ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the CITY COUNCIL of the CITY OF CHULA VISTA, CALIFORNIA, has undertaken
proceedings pursuant to the "Refunding Act of 1984 for 1915 Improvement Act Bonds" (the "Reassessment
and Refunding Act"), being Division 11.5 of the Streets and Highways Code of the State of Cali fomi a, and
has previously adopted a resolution approving an Assessment Engineer's Report prepared and submitted
pursuant to the provisions of the Reassessment and Refunding Act (the "Preliminary Assessment Engineer's
Report") and conditionally confirming reassessments upon lands within a reassessment district known and
designated as Reassessment District No. 2001-2 (the "Reassessment District"); and,
WHEREAS, such proceedings provide for the issuance of Limited Obligation Refunding Bonds
(defined below) pursuant to the Reassessment and Refunding Act to represent the unpaid reassessments
within such Reassessment District; and,
WHEREAS, at this time, but subject to the final confirmation of the reassessments to be incorporated
in a final Assessment Engineer's Report and the recordation of the reassessment diagram and notice of
reassessment, this legislative body desires to set forth all formal terms and conditions relating to the issuance
and sale of such Limited Obligation Refunding Bonds; and,
WHEREAS, a portion of the proceeds of the Limited Obligation Refunding Bonds shall be used to
retire, in advance of their scheduled maturities, certain outstanding improvement bonds of the City
designated as follows:
1. City of Chula Vista Assessment District No. 88-1 (Otay Lakes Road, Phase I) Limited Obligation
Improvement Bonds;
2. City of Chula Vista Assessment District No. 90-2 (Otay Valley Road) Limited Obligation
Improvement Bonds, Series A;
3. City of Chula Vista Assessment District No. 90-2 (Otay Valley Road) Limited Obligation
Improvement Bonds, Series B; and
4. City of Chula Vista Assessment District No. 92-2 (Auto Park) Limited Obligation Improvement
Bonds,
(collectively, the "Prior Bonds"); and
I
WHEREAS, in order to provide the most cost effective refunding of the Prior Bonds and the City of
Chula Vista Reassessment District No. 2001-1 Limited Obligation Refunding Bonds (the "2001-1 Limited
Obligation Refunding Bonds"), the City Council desires and requests that the Chula Vista Public Financing
Authority (the "Authority") issue, sell and deliver its Refunding Revenue Bonds (2001 Assessment Districts
Refinancing) Series A Senior Lien Bonds and its Refunding Revenue Bonds, (2001 Assessment Districts
Refinancing) Series B Subordinate Lien Bonds in an aggregate principal amount not to exceed $30,000,000
(collectively, the "Authority Bonds") to provide funds to purchase the Limited Obligation Refunding Bonds
and the 2001-1 Limited Obligation Refunding Bonds;
WHEREAS, for the purposes of the sale and delivery of the Limited Obligation Refunding Bonds,
there are now on file with the City Clerk copies of the forms of the Bond Indenture by and between the City
and U.S. Bank Trust National Association, as fiscal agent, establishing the terms and conditions pertaining
to the issuance of the Limited Obligation Improvement Bonds (the "Bond Indenture"); the Acquired
Obligations Purchase Agreement by and between the Authority and the City related to the sale of the
Limited Obligation Refunding Bonds (the "Acquired Obligations Purchase Agreement"); the Escrow
Agreement by and between the City and u.s. Bank Trust National Association, as escrow agent (the
"Escrow Agreement"); the Preliminary Official Statement related to the Authority Bonds (the "Preliminary
Official Statement"); the Bond Purchase Contract among the Authority, the City and Stone & Youngberg
LLC, as the purchaser of the Authority Bonds (the "Bond Purchase Contract"); and the Continuing
Disclosure Agreement among the Authority, the City and U.S. Bank Trust National Association, as
dissemination agent (the "Continuing Disclosure Agreement"), and reference is hereby made thereto for
further particulars;
WHEREAS, this City Council has reviewed and considered such Bond Indenture, Acquired
Obligations Purchase Agreement, Escrow Agreement, Preliminary Official Statement, Bond Purchase
Contract and Continuing Disclosure Agreement and finds those docwnents suitable for approval, subject to
the conditions set forth in this resolution; and
WHEREAS, all conditions, things and acts required to exist, to have happened and to have been
performed precedent to and in the issuance of the Limited Obligation Refunding Bonds and the levy of the
reassessments as contemplated by this resolution and the documents referred to herein exist, have happened
and have been performed or have been ordered to have been preformed in due time, form and manner as
required by the laws of the State of California, including the Reassessment and Refunding Act.
NOW, THEREFORE, BE IT RESOLVED AND DETERMINED:
SECTION 1. Recitals. The above recitals are true and correct.
SECTION 2. Bonds Authorized. Pursuant to the Reassessment and Refunding Act, this Resolution
and the Bond Indenture, limited obligation refunding bonds of the City for the Reassessment District
designated as "City ofChula Vista Reassessment District No. 2001-2 Limited Obligation Refunding Bonds"
in an aggregate principal amount not to exceed the unpaid reassessments (the "Limited Obligation
Improvement Bonds") are hereby authorized to be issued. The date, manner of payment, interest rate or
rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of
payment, terms of redemption and other terms, covenants and conditions of the Bonds shall be as provided
in the Bond Indenture as finally executed.
2
SECTION 3. Authorjzation and Conditions. The City Manager of the City or the Deputy City
Manager and each of their specified designees (the "Authorized Officers"), acting for and on behalf of the
City, are, and each ofthem is, hereby authorized and directed to execute and deliver the various documents
and instruments described in this Resolution with such changes, insertions and omissions as the Authorized
Officer executing the same may require or approve as being in the best interests of the City subject to any
limiting conditions contained herein and further subject to the approval thereof as to form by the City
Attorney or his specified designee and Best Best & Krieger LLP, the City's bond counsel. The approval of
such additions or changes shall be conclusively evidenced by the execution and delivery of such documents
or instruments by the Authorized Officer.
SECTION 4. Bond Indenture. The form of Bond Indenture on file in the City Clerk's officer is
hereby approved.
SECTION 5. Sale of Limited Obligation Refunding Bonds. This City Council hereby authorizes
and approves the sale of the Limited Obligation Refunding Bonds by negotiation to the Authority. The form
of the Acquired Obligations Purchase Agreement on file in the City Clerk's office is hereby approved.
Notwithstanding the foregoing, the authorization to execute the Acquired Obligations Purchase Agreement is
subject to the satisfaction of the following conditions precedent: (a) that the aggregate principal amount of
the Limited Obligation Refunding Bonds is equal to or less than the aggregate amount of the unpaid
reassessments within the Reassessment District, (b) that the purchase price of the Limited Obligation
Refunding Bonds does not exceed the purchase price thereof upon which the Preliminary Assessment
Engineer's Report was based, (c) that the annual interest rate on the Limited Obligation Improvement Bonds
shall not exceed annual interest rate thereon upon which the Preliminary Assessment Engineer's Report was
based and (d) that the final maturity of the Limited Obligation Refunding Bonds shall not be later than
September 2, 2017.
SECTION 6. Escrow Agreement. The form of the Escrow Agreement on file in the City Clerk's
office is hereby approved.
SECTION 7. Approval of Preliminary Official Statement and Final Official Statement. The form of
Preliminary Official Statement on file in the office of the City Clerk is hereby approved. The Authorized
Officers, acting for and on behalf of the City, are, and each of them is, hereby authorized and directed to
approve such changes, insertions and omissions therein as are necessary to enable such Authorized Officer to
certify on behalf of the City that the approved Preliminary Official Statement is deemed final as of its date
except for the omission of certain information as permitted by Section 240.15c2-12(b)(l) of Title 17 of the
Code of Federal Regulations. The Authorized Officers, acting for and on behalf ofthe City, are, and each of
them is further authorized and directed to cause the City, together with the Authority, to bring the
Preliminary Official Statement into the form of a final official statement (the "Final Official Statement") and
to execute a statement that the facts contained in the Final Official Statement, and any supplement or
amendment thereto (which shall be deemed an original part thereof for the purpose of such statement) were,
at the time of sale ofthe Revenue Bonds and the Limited Obligation Refunding Bonds, true and correct in all
material respects and that the Final Official Statement did not, on the date of sale of the Revenue Bonds and
the Limited Obligation Refunding Bonds, and does not, as ofthe date of delivery of the Revenue Bonds and
the Limited Obligation Refunding Bonds, contain any untrue statement of a material fact with respect to the
City, the Reassessment District or the Limited Obligation Refunding Bonds or omit to state material facts
3
with respect to the City, the Reassessment District or the Limited Obligation Refunding Bonds required be
stated where necessary to make any statement made therein not misleading in the light of the circumstances
under which it was made.
SECTION 8. Continuing Disclosure Agreement. The fonn of the Continuing Disclosure Agreement
on file in the office of the City Clerk is hereby approved.
SECTION 9. Costs ofIssuance. "Designated costs of issuing the refunding bonds" for purposes of
Subsection 9600(b) and Section 9614 of the Reassessment and Refunding Act are the items specified in
paragraphs (I) through and including (5) of subsection (a) of Section 9600 of the Reassessment and
Refunding Act, and "Costs of Issuance" as such phrase is used in the Bond Indenture shall mean such
designated costs of issuing the Limited Obligation Refunding Bonds.
SECTION 10. Bonds Prepared and Delivered. Upon the execution of the Acquired Obligations
Purchase Agreement, the Limited Obligation Refunding Bonds shall be prepared, authenticated and
delivered, all in accordance with the applicable tenns ofthe Reassessment and Refunding Act and the Bond
Indenture, and the Authorized Officers, and each of them, and other responsible City officials are hereby
authorized and directed to take such actions as are required under the Acquired Obligations Purchase
Agreement and the Bond Indenture to complete all actions required to evidence the delivery ofthe Limited
Obligation Refunding Bonds upon the receipt of the purchase price thereoffrom the Authority.
SECTION II. Annual Reassessment Installments. A copy of the resolution confinning the
reassessments and the reassessments, which reassessments shall constitute the security for the Limited
Obligation Refunding Bonds, shall be delivered to the Treasurer and the Treasurer shall keep or cause to be
kept the record showing the several installments of principal and interest on the reassessments which are to
be collected each year during the tenn of the Bonds. An annual portion of each reassessment, together with
annual interest on said reassessment, shall be payable in the same manner and at the same time and in the
same installment as the general property taxes of the County of San Diego and shall be payable and become
delinquent at the same time and in the same proportionate amount. Each year the annual installments shall
be submitted to the County Auditor for purposes of collection.
SECTION 12. Actions. All actions heretofore taken by the officers and agents of the City with
respect to the establishment of the Reassessment District and the sale and issuance of the Limited Obligation
Refunding Bonds are hereby approved, confinned and ratified, and the proper officers of the City are hereby
authorized and directed to do any and all things and take any and all actions and execute any and all
certificates, agreements, contracts, and other documents, which they, or any of them, may deem necessary or
advisable in order to consummate the lawful issuance and delivery of the Limited Obligation Refunding
Bonds in accordance with the Reassessment and Refunding Act, this Resolution, the Bond Indenture, the
Acquired Obligations Purchase Agreement, the Escrow Agreement, the Preliminary Official Statement, the
Bond Purchase Contract, the Continuing Disclosure Agreement and any certificate, agreement, contract, and
other document described in the documents herein approved.
4
SECTION 13. Effective Date. This resolution shall take effect from and after its adoption.
PREPARED BY: APPROVED AS TO FORM:
Robert Powell John Kaheny
Deputy City Manager City Attorney
5
RESOLUTION NO.
RESOLUTION OF THE CHULA VISTA PUBLIC FINANCING AUTHORITY OF
THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF
REFUNDING REVENUE BONDS, APPROVING AS TO FORM THE
INDENTURE OF TRUST, BOND PURCHASE CONTRACT, ACQUISITION
OBLIGATIONS PURCHASE AGREEMENT, PRELIMINARY OFFICIAL
STATEMENT, AND CONTINUING DISCLOSURE AGREEMENT, AND
AUTHORIZING OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, the CHULA VISTA PUBLIC FINANCING AUTHORITY (the "Authority") is
a public agency organized under the Joint Exercise of Powers Law of the State of California and is
authorized pursuant to said law and the Joint Exercise of Powers Agreement creating the Authority
to assist in financing or refinancing of public capital facilities improvements of the City of Chula
Vista (the "City") or the Redevelopment Agency of the City ofChula Vista (the "Agency"); and
WHEREAS, the City desires and has requested that the Authority issue, sell and deliver its
Refunding Revenue Bonds (200 I Assessment Districts Refinancing) Series A Senior Lien Bonds
(the "Senior Lien Bonds") and its Refunding Revenue Bonds (2001 Assessment Districts
Refinancing) Series B Subordinate Lien Bonds (the "Subordinate Lien Bonds") (the Senior Lien
Bonds and the Subordinate Lien Bonds are referred to collectively as the "Revenue Bonds") in an
aggregate principal amount not to exceed $30,000,000 to provide funds to purchase certain bonds of
the City identified as the City ofChula Vista Reassessment District No. 2001-1 Limited Obligation
Refunding Bonds (the "2001-1 Refunding Bonds") and the City of Chula Vista Reassessment
District No. 2001-2 Limited Obligation Refunding Bonds (the "2001-2 Refunding Bonds") (the
2001-1 Refunding Bonds and the 2001-2 Refunding Bonds are referred to collectively as the
"Acquired Obligations"); and
WHEREAS, the City proposes to issue the 2001-1 Refunding Bonds and the 2001-2
Refunding Bonds in order to refund the following outstanding limited obligation improvement bonds
the proceeds of which were used to finance public capital improvement facilities of the City:
I. City of Chula Vista Assessment District No. 88-1 (Otay Lakes Road, Phase 1) Limited
Obligation Improvement Bonds;
2. City of Chula Vista Assessment District No. 90-1 (Salt Creek I) Limited Obligation
Improvement Bonds;
3. City ofChula Vista Assessment District No. 90-2 (Otay Valley Road) Limited Obligation
Improvement Bonds, Series A;
4. City of Chula Vista Assessment District No. 90-2 (Otay Valley Road) Limited Obligation
Improvement Bonds, Series B;
Draft 6.18.01 1
5. City of Chula Vista Assessment District No. 90-3 (Eastlake Greens - Phase I) Limited
Obligation Improvement Bonds;
6. City of Chula Vista Assessment District No. 91-1 (Telegraph Canyon Road - Phase II)
Limited Obligation Improvement Bonds; and
7. City of Chula Vista Assessment District No. 92-2 (Autopark) Limited Obligation
Improvement Bonds; and
WHEREAS, the Revenue Bonds are to be offered for negotiated sale to Stone & Youngberg
LLC (the "Underwriter"); and
WHEREAS, there has been prepared and filed with the Secretary of this Board of Directors
the fonns of the Indenture of Trust by and between the Authority and U.S. Bank Trust National
Association as trustee (the "Indenture of Trust") establishing the tenus and conditions pertaining to
the issuance, sale and administration of the Revenue Bonds; the preliminary official statement
describing the City, the Authority, the Reassessment Districts, the Revenue Bonds and the Acquired
Obligations (the "Preliminary Official Statement"); the Bond Purchase Contract by and between the
Authority and the Underwriter related to the purchase of the Revenue Bonds (the "Revenue Bond
Purchase Contract") by the Underwriter; the Acquired Obligations Purchase Agreement by and
between the Authority and the City related to the purchase of the Acquired Obligations by the
Authority (the "Acquired Obligations Purchase Agreement") and the Continuing Disclosure
Agreement among the Authority, the City and U.S. Bank Trust National Association, as the
Dissemination Agent to provide continuing disclosure of certain infonnation specified therein (the
"Continuing Disclosure Agreement"), which fonns have been reviewed by this Board of Directors;
and
WHEREAS, the Authority desires to authorize the issuance and sale ofthe Revenue Bonds,
the distribution of the Preliminary Official Statement, and the purchase of the Acquired Obligations.
NOW, THEREFORE, BE IT RESOLVED, AND DETERMINED:
SECTION I. Recitals. The above recitals are true and correct.
SECTION 2. Approval ofIssuance and Sale of Revenue Bonds. This Board of Directors
hereby approves the issuance and sale ofthe Revenue Bonds by negotiated sale to the Underwriter.
The proceeds of the Revenue Bonds shall be expended to purchase the Acquired Obligations, to fund
separate reserve funds for the Senior Lien Bonds and the Subordinate Lien Bonds and to pay the
costs of the issuance, sale and delivery of the Revenue Bonds.
SECTION 3. Indenture of Trust. The fonn ofthe Indenture of Trust relating to the Revenue
Bonds presented at this meeting is hereby approved. The Executive Director or the Chief Financial
Officer of the Authority and each of their specified designees (the "Authorized Officers"), acting for
and on behalf of the Authority, are, and each of them is, hereby authorized and directed to execute,
acknowledge and deliver the Indenture of Trust in substantially the fonn approved hereby, with such
changes, insertions and omissions as the Authorized Officer executing the same may require or
Draft 6.18.01 2
approve as being in the best interests of the Authority, and as approved as to form by the legal
advisor to the Authority or his specified designee and bond counsel, such approval to be conclusively
evjdenced by the execution and deljvery thereof by such Authorjzed Officer.
SECTION 4. Revenue Bond Purchase Contract. The form of the Revenue Bond Purchase
Contract by and between the Authority and the Underwriter presented at this meeting and the sale of
the Revenue Bonds pursuant thereto is hereby approved. The Authorized Officers, acting for and on
behalf of the Authority, are, and each of them is, hereby authorized and directed to evidence the
Authority's acceptance of the terms and provisions of the Revenue Bond Purchase Contract by
executing and delivering the Revenue Bond Purchase Contract, with such changes, insertions and
omissions as the Authorized Officer executing the same may require or approve as being in the best
interests of the Authority, and as approved as to form by the legal advisor to the Authority or his
specified designee and bond counsel, such approval to be conclusively evidenced by the execution
and delivery thereof by such Authorized Officer; provided, however, that the Authorized Officer
shall execute the Revenue Acquisition Agreement only if the aggregate principal amount of the
Revenue Bonds is equal to or less than $30,000,000, the Revenue Bonds shall be sold at a purchase
price of not less than ninety eight percent (98%) of the principal amount thereof, the annual interest
rate on the Senior Lien Bonds shall not exceed six percent (6%) per annum, the annual interest rate
on the Subordinate Lien Bonds shall not exceed seven percent (7%) per annum and the final maturity
of the Revenue Bonds shall not be later than September 2, 2017.
SECTION 5. Approval of Preliminary Official Statement and Final Official Statement. The
form of Preliminary Official Statement presented at this meeting is hereby approved. The Authorized
Officers, acting for and on behalf of the Authority, are, and each of them is, hereby authorized and
directed to approve such changes, insertions and omissions therein as are necessary to enable such
Authorized Officer to certify on behalf of the Authority that the approved Preliminary Official
Statement is deemed final as of its date except for the omission of certain information as permitted
by Section 240. I 5c2-12(b)(l) of Title 17 of the Code of Federal Regulations. The Authorized
Officers, acting for and on behalf of the Authority, are, and each of them is further authorized and
directed to cause the Authority to bring the Preliminary Official Statement into the form of a final
official statement (the "Final Official Statement") and to execute a statement that the facts contained
in the Final Official Statement, and any supplement or amendment thereto (which shall be deemed
an original part thereof for the purpose of such statement) were, at the time of sale of the Revenue
Bonds, true and correct in all material respects and that the Final Official Statement did not, on the
date of sale of the Revenue Bonds, and does not, as of the date of delivery of the Revenue Bonds,
contain any untrue statement of a material fact with respect to the Authority or omit to state material
facts with respect to the Authority required be stated where necessary to make any statement made
therein not misleading in the light of the circumstances under which it was made. The Underwriter
is hereby authorized to distribute copies of the Preliminary Official Statement to persons who may
be interested in the purchase of the Revenue Bonds and is directed to deliver copies of the Final
Official Statement to all actual purchasers of the Revenue Bonds from the Underwriter acting in such
capacity.
SECTION 6. Continuing Disclosure Agreement. The form of the Continuing Disclosure
Agreement presented at this meeting is hereby approved. The Authorized Officers, acting for and on
Draft 6.18.01 3
behalf of the Authority, are, and each of them is, hereby authorized and directed to execute,
acknowledge and deliver the Continuing Disclosure Agreement in substantially the form approved
hereby, with such changes, insertions and omissions as the Authorized Officer executing the same
may require or approve as being in the best interests ofthe Authority, and as approved as to form by
the legal advisor to the Authority or his specified designee and bond counsel, such approval to be
conclusively evidenced by the execution and delivery thereof by such Authorized Officer.
SECTION 7. Acquired Obligation Purchase Agreement. The form of the Acquired
Obligations Purchase Agreement by and between the Authority and the Cjty presented at this
meeting and the acquisition by the Authority ofthe Acquired Obligations pursuant thereto is hereby
approved. The Authorized Officers, acting for and on behalf of the Authority, are, and each of them
is, hereby authorized and directed to evidence the Authority's acceptance of the terms and provisions
of the Acquired Obligations Purchase Agreement by executing and delivering the Acquired
Obligations Purchase Agreement, with such changes, insertions and omissions as the Authorized
Officer executing the same may require or approve as being in the best interests of the Authority, and
as approved as to form by the legal advisor to the Authority or his specified designee and bond
counsel, such approval to be conclusively evidenced by the execution and delivery thereof by such
Authorized Officer; provided, however, that the Authorized Officer shall execute the Acquired
Obligations Purchase Agreement only if the aggregate principal amount of the Acquired Obligations
is equal to or less than $30,000,000, the purchase price and the interest rate per annum for each of the
Acquired Obligations does not exceed the purchase price and interest rate per annum upon which the
Assessment Engineer's Report for each respective Acquired Obligation was based and the final
maturity of each of the Acquired Obligations shall not be later than September 2,2017.
SECTION 8. Official Action. The Chairperson, the Vice-Chairperson, the Executive
Director, the Chief Financial Officer, the Secretary, the Authorized Officers and any and all other
officers of the Authority are hereby authorized and directed, jointly and severally, for and in the
name of the Authority, to do any and all things and take any and all actions, including without
limitation, the execution and delivery of any and all assignments, certificates, requisitions,
agreements, notices, consents, instruments of conveyance, warrants and other documents which they,
or any of them, may deem necessary and advisable in order to consummate the transactions
contemplated by the documents approved pursuant to this Resolution and any such actions
previously taken by such officers are hereby ratified and confirmed. In the event any such officer is
unavailable or unable to execute and deliver any of the above-referenced documents, any other
officer of the Authority may validly execute and deliver such document.
SECTION 9. Bond Rating. The Authorized Officers are, and each of them is, with the
assistance ofSutro & Co., Incorporated, the financial advisor to the Authority regarding the Revenue
Bonds (the "Financial Advisor"), and the Underwriter, hereby authorized to apply for a rating on the
Revenue Bonds or either series thereof with any nationally recognized rating agency the Authorized
Officer deems advisable. Additionally, such Authorized Officers, with the assistance of the
Financial Advisor and the Underwriter, are hereby authorized to apply for and accept a commitment
to provide municipal bond insurance and to provide a municipal bond debt service reserve fund
policy for the Revenue Bonds or either series thereof. Such Authorized Officers are, and each of
them is, hereby authorized to execute any commitment letter and to do any and all other things and
Draft 6.18.01 4
to deliver any and all documents necessary or advisable in order to obtain such municipal bond
insurance and municipal bond debt service reserve fund policy, if any, for the Revenue Bonds or
either series thereof.
SECTION 10. Effective Date. This Resolution shall take effect immediately upon its
passage and adoption.
PREPARED BY: APPROVED AS TO FORM:
Robert Powell John Kaheny
Chief Finance Officer General Counsel to the Authority
Draft 6.18.01 5
SYC&R
DRAFT OF Î.:'O'
CHULA VISTA PUBLIC FINA.,'iCING AUTHORITY
REFUNDING REVEì'luE BONDS
(2001 ASSESSMENT DISTRICTS REFINAl'lCING)
s - S
SERIES A SENIOR LIEN BO!'\'DS SERIES B SUBORDINATE LIEN BONDS
BOì'l~PURCHASECONTRACT
August _,2001
City of Chula Vista
Chula Vista Public Financing Authority
276 Fourth Avenue
Chula Vista, CA 91910
Attn: Deputy City Manager
Ladies and Gentlemen:
The undersigned Stone & Youngberg LLC (the "Underwriter") offers to enter into this bond
purchase contract (the "Purchase Contract") with the City of Chula Vista ("City") and the Chula
Vista Public Financing Authority (the "Authority"), which will be binding upon the City, ¡he
Authority and the UnderwTiter upon the acceptance hereof by the City and the Aumority. This offer
is made subject to its acceptance by the City and the Authority by execution of this Purchase
Contract and its delivery to the Underwriter on or before 10:00 p.m., California time, on the ¿aIe
hereof. An capitalized tenns not otherwise defined herein shan have the meanings given to such
tenns in the Indenture of Trust dared as of August I, 200 I ("Indenture") between the Authority and
me trustee named merein ("Trustee").
1. Purchase and Sale. Upon the tenns and conditions and upon the basis of ¡he
representations, warranties and agreements hereinafter set forth, the Underwriter hereby agrees to
purchase from the Authority for offering to me public, and the Authority hereby agrees to sen to r.\-¡e
Underwriter for such purpose, an (but not less than an) of the $ total aggregate principal
amount of the Aumority's Refunding Revenue Bonds (2001 Assessment District Refinancing), Series
A Senior Lien Bonds (me "Series A Bonds"), and Series B Subordinate Lien Bonds (the "Series B
Bonds" and conectjvely with me Series A Bonds, the "Bonds") at a total purchase price of
S , which represents me sum of (i) $ aggregate principal amount of the Series A
Bonds less an original issue discount of S , and (ii) S aggregate principal
amount of the Series B Bonds less an original issue discount of S . The Bonds shan be
dated the Closing Date (as defined below) and shan mature on the dates and in the amounts, and bear
interest at the rates per annum shown in Exhibit "A" hereto. Payment for and delivery of the Bonds,
and the other actions contemplated hereby shan take place upon the "Closing," as defined in
Section 7 below, on the "Closing Date" which date is September 4,2001 (or such other date as may
be agreed to between the Authority and the Underwriter).
I
DOCSOC809797vJ222~5.0125
2. Authorization Instruments and Law. The Bonds shall be substantially in the form
described in, and shall be issued and secured under the provisions of, the Indenture. The Authority
was fonned pursuant to AIticles I through 4 (commencing with Section 6500) of Chapter 5,
Division 7, Title I of the California Government Code (the "JPA Act"), and is authorized pursuant to
Article 4 of the JPA Act (the "Bond Law") to boITOW money for the purpose of fmancing the
acquisition of bonds, notes and other obligations of the City to provide financing for public capital
improvements of the City. The Bonds shall be as described in the Indenture and the Official
Statement relating to the Bonds (which, together with all appendices attached thereto and such
amendments or supplements thereto which shall be approved by the Underwriter and the Authority,
is hereinafter called the "Official Statement").
The proceeds of the Bonds will be used by the Authority to purchase from the City, pursuant
to a bond purchase agreement between the Authority and the City (the "Local Obligation Purchase
Contract"), the City of Chula Vista Reassessment District 2001-1, Linlited Obligation Refunding
Bonds (the "200 I-I Refunding Bonds") relating to Reassessment District No. 200 I-I of the City of
Chula Vista (the "Reassessment District 2001-1"), and the City of Chula Vista Reassessment District
2001-2, Limited Obligation Refunding Bonds (the "2001-2 Refunding Bonds" and, together with the
200 I-I Refunding Bonds the "Refunding Bonds") relating to the City of Chula Vista Reassessment
District 2001-2 (the "Reassessment District 2001-2" and, together with Reassessment District
2001-1, the "Reassessment Districts") to assist the City in refinancing certain public capital
improvements previously financed by the City's issuance of certain limited obligation improvement
bonds (the "Refunded Bonds") with respect to the City's Assessment District Nos. 88-1, 90-1, 90-2,
90-3,91-1,92-2 and 94-1 (collectively, the "Original Assessment Districts"). The 2001-1 Refunding
Bonds wi1l be issued pursuant to a Bond Indenture dated as of August I, 2001 (the "2001-1 Bond
Indenture") by and between the City and u.s. Bank Trust National Association, as "Fiscal Agent"
and shall be secured by a first pledge of and lien on all of the unpaid reassessments (the
"Reassessments") levied wiIhin the Reassessment District 200 I-I. The 2001-2 Refunding Bonds
will be issued pursuant to a Bond Indenture dated as of August I, 2001 (the "2001-2 Bond
Indenture") by and between the City and the Fiscal Agent and shall be secured by a first pledge of
and lien on all of the unpaid Reassessments levied within the Reassessment District 2001-2. The
Bonds shall be secured by a pledge of all of the Revenues consisting primarily of principal and
interest payments made by the City with respect to the Refunding Bonds, with the Series A Bonds
having a senior lien thereon and the Series B Bonds a subordinate lien thereon.
Pursuant to the Local Obligation Purchase Contract the City will transfer a portion of the
proceeds from sale of the Refunding Bonds to the Trustee for deposit in the Senior Reserve Fund, the
Subordinate Reserve Fund, the Administrative Expense Fund and the Costs of Issuance Fund
established under the Indenture. The Authority hereby agrees to pay to Underwriter at Closing the
total sum of $ (the "Underwriter's Fee") as compensation of all services rendered in
connection with the Bonds.
3. Public Offering. The Underwriter agrees to make a bona fide public offering of all
the Bonds initially at the public offering prices (or yields) set forth in Exhibit "A" hereto.
Subsequent to the initial public offering, the Underwriter reserves the right to change the public
offering prices (or yields) as iI deems necessary in connection with the marketing of the Bonds,
provided that the Underwriter shall not change the interest rates set foIth on Exhibit "A" hereto. The
Bonds may be offered and sold to certain dealers at prices lower than such initial public offering
pnces.
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DOCSOC809797v3\22:>5.01:5
4. Delivery of Official Statement. The Authority and the City have delivered or
caused to be delivered to the Underwriter copies of the Preliminary Official Statement dated
_,2001 relating to the Bonds (the "Preliminary Official Statement"). The Authority and the
City each represent that the Preliminary Official Statement, (i) at the time of its distribution by the
Underwriter, was and has been deemed by it as a "near-final" Official Statement within the meaning
of Rule 15c2-12 jssued by the Securities and Exchange Commission, under the Securities Exchange
Act of 1934 (the "Rule") except for permitted omissions pursuant to paragraph (b)(I) of the Rule and
(ii) is approved for distribution by resolutions of the Authority and the City. The Authority and the
City hereby consent to the use by the UndemTiter, prior to the date hereof, of the Preliminary
Official Statement of the Authority relating to the Bonds.
Within seven (7) business days after its acceptance hereof and in sufficient time to
accompany any confirmations of the sale of any Bonds, the Authority shall deliver to the Underwriter
a final Official Statement, executed on behalf of the Authority by an authorized representative and
the City by an authorized representative and dated the date of execution of this Purchase Agreement,
which shall include information permitted to be omitted from the Preliminary Official Statement by
paragraph (b)(I) of the Rule and such other amendments or supplements as shall have been approved
by the Authority, the City and the Underwrirer (the "Official Statement") and such additional
conformed copies thereof as the Underwriter may reasonably request in sufficient quantities to
comply with the Rule and to meet potential customers' requests for copies of the Official Statement..
Each of the Authority and the City hereby authorizes the use of the Official Statement in connection
with the public offering and sale of the Bonds. The Underwriter agrees that it will not confirm the
sale of any Bonds unless the confirmation of sale is accompanied or preceded by the delivery of a
copy of the Official Statement.
5. Authority Representations, \Varranties and Covenants. The AUthority represents,
warrants and covenants to the Underwriter and the City that:
(a) Due Organization, Existence and Authority of Authority. The Authority
is a joint exercise of powers authority, duly organized and existing under the Constitution and
laws of the State of California (the "State"), including the JP A Act, with full right, power and
authority to, (i) enter into this Purchase Contract, (ii) enter into the Indenture, (iii) enter into
the Local Obligation Purchase Contract. (iv) enter into the Continuing Disclosure Agreement
dated as of August I, 2001 (the "Continuing Disclosure Agreement") by and among the
Authority, the City and MuniFinancial, as dissemination agent, (v) adopt Resolution No.
- of the Authority (the "Authority Resolution") authorizing the issuance of the Bonds
and entry into the Purchase Contract, Indenture, Local Obligation Purchase Contract, the
Continuing Disclosure Agreement and to take all other actions on the part of the Authority
relating thereto (the "Authority Proceedings"), (vi) issue, sell and deliver the Bonds to the
Underwriter as provided herein, and (vii) to carry out and consummate the transactions on its
part contemplated by this Purchase Contract, the Indenture, the Local Obligation Purchase
Contract, the Continuing Disclosure Agreement and the Official Statement.
The Indenture, the Bonds, this Purchase Contract, the Local Obligation Purchase Contract
and the Continuing Djsclosure Agreement are collectively referred to herein as the "Authority
Documents."
(b) Due Authorization and Approval of Authority. By all necessary official
action of the Authority, the Authority has duly authorized and approved the execution and
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DOCSOC809797v)".222"5.0J 25
delivery by the Authority of, and the performance by the Authority of the obligations on its
part contained in, the Authority Documents, and has approved the use by the Underwriter of
the Preliminary Official Statement and the Official Statement and, as of the date hereof, such
authorizations and approvals are in full force and effect and have not been amended.
modified or rescinded. When executed and delivered by the parties thereto, the Bonds and
the Authority Documents will constitute the legally valid and binding obligations of the
Authority enforceable upon the Authority in accordance with their respective terms, except as
enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws or equitable principles relating to or affecting creditors rights generally. To the
best of the Authority's knowledge, the Authority has complied, and will at the Closing be in
compliance in all respects, with the terms of the Authority Documents that are applicable to
the Authority.
(c) Official Statement Accurate. The information in the Preliminary Official
Statement and in the Official Statement relating to the Authority and the Bonds, including the
information on the cover and under the captions "INTRODUCTION," "THE PLAN OF
FINAc"lCE," "SOURCES AND USES," "THE BONDS," "SECURlTY FOR THE BONDS:'
"THE AUTHORlTY," "CONCLUDING INFORMATION - No Litigation, - Continuing
Disclosure, and - Miscellaneous," and Appendix D is true and correct in all material respec:..s
and does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein in light of the circumstances under which they wece
made not misleading; and, upon delivery and up to and including 25 days after the End ofù'1e
Underwriting Period (as defined in Section 5(d) below), the Official Statement will contain
no misstatement of any material fact and will not omit any statement necessary to make the
statements contained therein. in the light of the circumstances in which such statements we,e
made, not misleading.
(d) Amendments and Supplements to Official Statement. Up to and including
25 days after the End of the Underwriting Period (as defined below), the Authority \\ill
advise the Underwriter promptly of any proposal to amend or supplement the Offici,,!
Statement and will not effect or consent to any such amendment or supplement without L':1e
consent of the Underwriter, which consent will not be umeasonably withheld. The Authority
will advise the Underwriter promptly of the institution of any proceedings known to it by any
governmental agency prohibiting or otherwise materially affecting the use of the Offici,,!
Statement in connection ",ith the offering, sale or distribution of the Bonds. As used herein,
the term "End of the Underwriting Period" means the later of such time as (i) the Bonds are
delivered to the Underwriter, or (ii) the Underwriter does not retain, directly or as a member
of an underwriting syndicate, an unsold balance of the Bonds for sale to the public. Unless
the Underwriter gives notice to the contrary, the End of the Underwriting Period shall be
deemed to be the date of the Closing. Any notice delivered pursuant to this provision shall be
written notice delivered to the Authority and the City at or prior to the Closing, and shall
specify a date (other than the date of Closing) to be deemed the "End of the Underwriting
Period."
(e) No Breach or Default. As of the time of acceptance hereof and as of the
Closing, except as otherwise disclosed in the Official Statement, the Authority is not, and as
of the time of the Closing the Authority will not be, in breach of or in default under any
applicable constitutional provision, law or administrative rule or regulation of the State or the
United States, or any applicable judgment or decree or any trust agreement, loan agreeme:1L
4
OOCSOC\809797v3\222ÜOI25
bond, note, resolution, ordinance, agreement or other instrument to which the Authority is a
party or is otherwise subject; and to the Authority's knowledge, no event has occulTed and is
continuing which, with the passage of time or the giving of notice, or both, would constitute a
default or event of default under any such instrument which breach, default or event could
have an adverse effect on the Authority's ability to perform its obligations under the Bonds
or the Authority Documents; and, as of such times, except as disclosed in the Official
Statement, the authorization, execution and delivery of the Bonds and Authority Documents
and compliance by the Authority with the provisions of each of such agreements or
instruments does not and will not conflict with or constitute a breach of or default under any
applicable constitutional provision, law or administrative rule or regulation of the State or the
United States, or any applicable judgment, decree, license, permit, trust agreement, loan
agreement, bond, note, resolution, ordinance, agreement or other instrument to which the
Authority (or any of. its officers in their respective capacities as such) is subject, or by which
it or any of its properties is bound; nor will any such authorization, execution, delivery or
compliance result in the creation or imposition of any lien, charge or other security interest or
encumbrance of any nature whatsoever upon any of its assets or properties or under the terms
of any such law, regulation or instrument, except as may be provided by the Authority
Documents.
(f) No Litigation. At the time of acceptance hereof and as of the Closing there
is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any
court, govemment agency, public board or body (collectively and individually, an "Action")
pending (notice of which has been served on the Authority) or to the best knowledge of the
Authority threatened, in which any such Action (i) in any way questions the corporate
existence of the Authority or the titles of the officers of the Authority to their respective
offices; (ii) affects, contests or seeks to prohibit, restrain or enjoin the issuance or delivery of
any of the Bonds, or the payment or collection of Revenues (as defined in the Indenture) or
any amounts pledged or to be pledged to pay the principal of and interest on the Bonds, or in
any way COntests or affects the validity of the Authority Documents or the consummation of
the transactions on the part of the Authority contemplated thereby; (iii) contests the exclusion
of the interest on the Bonds from federal or state income taxation or contests the powers of
the Authority which may result in any material adverse change relating to the financial
condition of the Authority; or (iv) contests the completeness or accuracy of the Preliminary
Official Statement or the Officjal Statement or any supplement or amendment thereto or
asserts that the Preliminary Official Statement or the Official Statement contained any untrue
statement of a material fact or omjtted to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and as of the time of acceptance hereof and as of the
Closing there is no known basis for any action, suit, proceeding, inquiry or investigation of
the nature described in clauses (i) through (iv) of this sentence.
(g) Further Cooperation; Blue Sky. The Authority will furnish such
infonnation, execute such instruments and take such other action in cooperation with the
Underwriter and at the expense of the Underwriter as the Underwriter may reasonably
request in order (i) to qualify the Bonds for offer and sale under the Blue Sky or other
securities laws and regulations of such states and other jurisdictions of the United States as
the Underwriter may designate and (ii) to determine the eligibility of the Bonds for
investment under the laws of such states and other jurisdictions, and will use its best efforts
to continue such qualifications in effect so long as required for the distribution of the Bonds,
5
OOCSOc.809797v3'~2245.0125
provided; however, that the Authority win not be required to execute a special or general
consent to service of process or qualify as a foreign corporation in connection with any such
qualification in any jurisdiction.
(h) Bonds Issued Per Indenture. The Bonds and the Authority Documents
confonn as to fonD and tenor to the descriptions thereof contained in the Official Statement.
The Authority represents that the Bonds, when issued, executed and delivered in accordance
with the Indenture and sold to the Underwriter as provided herein, will be validly issued and
outstanding obligations of the Authority, entitled to the benefits of the Indenture. The
Indenture creates a valid pledge of the monies in certain funds and accounts established
pursuant to the Indenture, subject in all C2ses to the provisions of the Indenture pennitting the
application thereof for the purposes and on the tenDS and conditions set forth therein.
(i) Consents and Approvals. All authorizations, approvals, licenses, pennits,
consents, elections, and orders of or filings with any governmental authority, legislative
body, board, agency or commission haYi.¡1g jurisdiction in the matters which are required by
Closing for the due authorization of, which would constirute a condition precedent to or the
absence of which would adversely affe:t the due perfonnance by the Authority of, its
obligations in conneCTIon with the AuÜlOrity Documenrs have been duly obtained or made
and are in full force and effect.
U) No Transfer Taxes. Tne issuance and sale of the Bonds is not subject to any
transfer or other documentary stamp taxes of the State or any political subdivision thereof.
(k) ì'io Adverse IRS Listing. The Authority has not been noTIfied of any lisTIng
or proposed listing by the Internal Reve:1ue Service to the effect that the Authority is a bond
issuer whose arbitrage certificaTIons may not be relied upon.
(I) Certificates. Any ce~ficate signed by any authorized officer of the
Authority and delivered to the Underwrirer in connection with the issuance and sale of the
Bonds shall be deemed to be a representation and covenant by the Authority to the
Underwriter as to the statemenrs made t.1erein.
(m) Bond Proceeds. The A.uthority will apply the proceeds of the Bonds in
accordance with the Indenture.
(n) Prior Undertakings. Except as disclosed in the Official Statement, neither
the Authority nor the City has ever failed to comply with any undertaking made by it
pursuant to the Rule.
(0) No Other Bonds. Between the date of this Purchase Contract and the date of
Closing, the Authority will not offer or issue any bonds, notes or other obligations for
borrowed money not previously disclosed to the Underwriter.
6. City Representations, Warranties and Covenants. The City represents, wamlnts
and covenants to the Underwriter and the Authority that:
(a) Due Organization, Existence and Authority. The City is a political
subdivision, duly organized and validly existing under the Constitution and laws of the State,
6
oocsoC' 809797v ]',222.50125
with full right, power and authority to (i) enter into this Purchase Contract, (ii) enter into the
2001-1 Bond Indenture, (iii) enter into the 2001-2 Bond Indenture, (iv) enter into the Local
Obligation Purchase Contract, (v) enter into an escrow agreement dated as of August 1,2001
(the "Escrow Agreement") by and between the City and U.S. Bank Trust National
Association, as "Escrow Agent," (vi) enter into the Continuing Disclosure Agreement, (\~i)
adopt Resolution No. - of the City Council of the City ofChula Vista "'~th respect to
its intention to levy reassessments and to issue refunding bonds upon the security thereof (the
"Resolution ofIntention"), Resolution No. - of the City Council of the City of Chula
Vista adopting Reassessment Report, confirming and ordering the reassessment pursuant to
summary proceedings and directing actions with respect thereto (the "Resolution Confirming
Reassessments"), Resolution No. - of the City Council of the City of Chula Vista
Authorizing the Issuance of Refunding Bonds and Authorizing Entry Into Purchase Contract,
Bond Indenture, Local Obligation Purchase Contract, Escrow Agreement and Other Related
Documents and Actions (the "Resolution of Issuance"), and to take all other actions on the
part of the City relating thereto (collectively, the "City Proceedings"), (viii) issue, sell and
deJiver the Refunding Bonds to the Authority as provided in the Local Obligation Purchase
Contract, and (ix) carry out and consummate the transactions on its part contemplated by this
Purchase Contract, the 2001-1 Bond Indenture, the 2001-2 Bond Indenture, the Local
ObJigation Purchase Contract, the Continuing Disclosure Agreement and the Official
Statement.
This Purchase Contract, the 2001-1 Bond Indenture, the 2001-2 Bond Indenture, the Local
ObJigation Purchase Contract, the Continuing Disclosure Agreement, the Refunding Bonds and the
Escrow Agreement are collectively refeITed to herein as the "City Documents."
(b) Due Authorization and Approval of City. By all necessary official action
of the City, the City has (i) duly and vaJidly formed the Reassessment District, confirmed the
Reassessments described in the Official Statement and taken all actions necessary to cause
said Reassessments to constitute Jiens on the respective parcels to which they were
confirmed, and (ii) duly authorized and approved the execution and deJivery by the City of.
and the performance by the City of the obligations on its part contained in, the City
Documents and, as of the date hereof, such authorizations and approvals are in full force and
effect and have not been amended, modified or rescinded. When executed and delivered by
the parties thereto, the Cjty Documents will constitute the legally vaJid and binding
obligations of the City enforceable upon the City in accordance with their respective terms,
except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws or equitable principles relating to or affecting creditors rights generally. The
City has complied, and will at the Closing be in compJiance in all respects, with the terms of
the City Documents applicable to the City.
The Reassessments described in the Official Statement have been duly and lawfully
confirmed under and pursuant to the provisions of the California Constitution and the
Refunding Act of 1984 for 1915 Act Improvement Bonds (the "Act"); and each such
Reassessment constitutes a valid and legally binding lien on the parcel of land in the
Reassessment District on which such Reassessment was confirmed. The Reassessments are
not subject to repeal or reduction by action of the City Council if the effect thereof would
interfere with the timely payment of the principal of and interest on the Refunding Bonds.
Except as disclosed in the Official Statement, as of the Closing Date there will be no
outstanding liens for general (ad valorem) taxes or special taxes or assessment liens against
7
DOCSOC'809797v 3\2~~~50 1 ~5
the land in the Reassessment District which will be senior to the Reassessment liens refeITed
to in this paragraph.
(c) No Material Change in Finances. At the time of the Closing, there shall not
have been any material adverse changes in the financial condition of the City since the date
of the Preliminary Official Statement.
(d) No Breach or Default. As of the time of acceptance hereof and as of the
Closing, except as otherwise disclosed in the Official Statement, the City is not or will not be
in breach of or in default under any applicable constitutional provision, law or administrative
rule or regulation of the State or the United States, or any applicable judgment or decree or
any trust agreement, loan agreement, bond, note, resolution, ordinance, agreement or other
instrument to which th~ City is a party or is otherwise subject, and no event has occUITed and
is continuing which, with the passage of time or the giving of notice, or both, would
constitute a default or event of default under any such instrument whjch breach, default or
event couJd have an adverse effect on the City's ability to perform its obligations under the
City Documents; and, as of such times, except as disclosed in the Official Statement, the
authorization, execution and delivery of the City Documents and compliance by the City with
the provisions of each of such agreements or instruments does not and ",ill not conflict with
or constitute a breach of or default under any applicable constitutional provision, Jawor
administrative rule or regulation of the State or the United States, or any applicable judgment,
decree, license, permit, trust agreement, loan agreement, bond, note, resolution, ordinance,
agreement or other instrument to which the City (or any of its officers in their respective
capacities as such) is subject, or by which it or any of its properties is bound, nor will any
such authorization, execution, delivery or compliance result in the creation or imposition of
any lien, charge or other security interest or encumbrance of any nature whatsoever upon any
of its assets or properties or under the terms of any such law, regulation or instrument, except
as may be provided by the City Documents.
(e) No Litigation. At the time of acceptance hereof and as of the Closing there
is no Action pending (notice of which has been served on the City) or to the best knowledge
of the City threatened, in which any such Action (i) in any way questions the corporate
existence of the City or the titles of the officers of the City to their respective offices; (ii)
affects, contests or seeks to prohibit, restrain or enjoin the issuance or delivery of the Bonds
or the Refunding Bonds or the payment or collection of installments or Reassessments or any
amounts pledged or to be pledged to pay the principal of and interest on the Refunding Bonds
or the Bonds, or in any way contests or affects the validity of the City Documents or the
consummation of the transactions on the part of the City contemplated thereby; (iii) contests
the exclusion of interest on the Refunding Bonds !Tom State income taxation or contests the
powers of the City which may result in any material adverse change relating to the financial
conditjon of the City; or (iv) contests the completeness or accuracy of the Preliminary
Official Statement or the Official Statement or any supplement or amendment thereto or
asserts that the Preliminary Official Statement or the Official Statement contained any untrue
statement of a material fact or omitted to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and as of the time of acceptance hereof and as of the
Closing there is no basis for any action, suit, proceeding, inquiry or investigation of the
nature described in clauses (i) through (iv) of this sentence.
S
DOCSOc\80979'vJ,"22"5.0125
(I) Refunding Bonds Issued Per 2001-1 Bond Indenture and 2001-2 Bond
Indenture. The City Documents conform as to form and tenor to the descriptions thereof
contained in the Official Statement. The City represents that the Refunding Bonds, when
issued, executed and delivered in accordance with the 2001-1 Bond Indenture and the 2001-2
Bond Indenture and sold to the Authority as provided in the Local Obligation Purchase
Contract, ""ill be validly issued and outstanding obligations of the City, entitled to the
benefits of the 2001-1 Bond Indenture and the 2001-2 Bond Indenture. The 2001-1 Bond
Indenture and the 2001-2 Bond Indenture create a valid pledge of the monies in certain funds
and accounts established pursuant thereto, subject in all cases to the provisions of the 2001-1
Bond Indenture and the 2001-2 Bond Indenture pennitting the application thereof for the
purposes and on the tenus and conditions set forth therein. The representations, warranties
and covenants made by the City to the Authority in the Local Obligation Purchase Contract
are true and correct in all material respects as of the date hereof and may þe relied upon by
the Underwriter as if made directly by the City to the Underwriter.
(g) Consents and Approvals. All authorizations, approvals, licenses, pennits,
consents, elections, and orders of or fiìings with any governmental authority, legislative
body, board. agency or commission having jurisdiction in the matters which are required by
Closing for the due authorization of, whicn would constitute a condition precedent to or the
absence of which would adversely affect me due perfonnance by the City of, its obligations
in connection with the City Documents h2.\"e been duly obtained or made and are in full force
and effect.
(h) Certificates. Any certiñcaœ signed by any authorized officer of the City and
delivered to the Underwriter in connection with the issuance and sale of the Bonds shall be
deemed to be a represenration and co\"enanr by the City to the Underwriter as to the
statements made therein.
(i) Local Obligation Proc~ds. The City will apply the proceeds of the
Refunding Bonds in accordance wiIh I,le 2001-1 Bond Indenture and the 2001-2 Bond
Indenture.
G) Official Statement. The infonnation in the Preliminary Official Statemenr
and in the Official Statement (other rhan the infonnation under the caption "BOND
INSURANCE FOR SERIES A BONDS" and the infonnation contained in Appendices E and
F, as to which no view is expressed) is true and correct in all material respects does not
contain any untrue statement of a material fact or omit to state a material fact necessary to
make the statements therein in light of the assumptions wiIh which they were made not
misleading.
(k) No Other Bonds. Between the date of this Purchase Contract and the date of
Closing, the City will not offer or issue any bonds, notes or other obligations for borrowed
money not previously disclosed to the Underwriter.
7. The Closing. At 8:00 a.m., California time, on the Closing Date, or at such other
time or on such earlier or later business day as shall have been mutually agreed upon by the
Authority and the Underwriter, (i) the Authoriry will deliver to the Underwriter the Bonds in
definitive fonn in New York, New York and (ii) the Authoriry will deliver the closing documents
hereinafter mentioned at the offices of Best Best & Krieger LLP, San Diego, California, or another
9
DOCSOC\809797v 3\22245.0125
place to be mutually agreed upon by the Authority and the UndernTiter. The UndernTiter will accept
such delivery and pay the purchase price of the Bonds as set forth in Section 1 hereof in immediately
available funds payable to the order of the Trustee on behalf of the Authority. These payments and
deliveries, together with the delivery of the aforementioned documents, are herein called the
"Closing." The Bonds will be delivered in typewritten form with one bond for each maturity of the
Bonds, registered in the name of Cede & Co., as nominee for the Depository Trust Co. of New York,
New York. The Bonds will be made available to the Underwriter for inspection not less than
48 hours prior to the Closing.
8. Closing Conditions. The Underwriter has entered into this Purchase Contract in
reliance upon the representations and covenants herein and the performance by the Authority and the
City of their respective obligations hereunder, both as of the date hereof and as of the date of the
Closing. The Underwriter's obligations under this Purchase Contract are and shall be subject to the
following additional conditions:
(a) Bring-Down Representation. The representations and covenants of the
Authority and the City contained herein shall be true and correct at the date hereof and at the
time of the Closing, as if made on the date of the Closing.
(b) Executed Agreements and Performance Thereunder. At the time of the
Closing (i) the Authority Documents, City Documents shall be in full force and effect, and
shall not have been amended, modified or supplemented except with the "Titten consent of
the Underwriter, (ii) there shall be in full force and effect all resolutions adopted as a part of
the Authority Proceedings and the City Proceedings and such resolutions (collectively, the
"Authorizing Resolutions") as, in the opinion of Best Best & Krieger LLP ("Bond Counse]"),
shall be necessary in connection with the transactions on the part of the Authority and the
City contemplated by this Purchase Contract, the Official Statement, the Authority
Documents and City Documents, (iii) the Authority and City shall perform or have performed
their respective obligations required or specified in the Authority Documents and/or City
Documents to be performed at or prior to Closing, (iv) the Official Statement shall not have
been supplemented or amended except as otherwise may have been agreed to in writing by
the UndernTiter, and (v) at or prior to the Closing, the Underwriter shall receive the
documents specified in Section 9 below.
(c) No Default. At the time of the Closing, no default shall have occurred and be
existing under this Purchase Contract, the Authorizing Resolutions, the Authority Documents
or the City Documents and the City and the Authority shall not be in default in the payment
of principal or interest on any of their respective bonded indebtedness which default
adversely impacts the ability of the City to make payments on the Refunding Bonds or the
Authority to make payments on the Bonds.
(d) Termination Events. The Underwriter shall have the right to terminate this
Purchase Contract, without liability therefor, by written notification to the Authority if at any
time at or prior to the Closing:
(i) any event shall occur which causes any statement contained in the
Official Statement to be materially misleading or results in a failure of the Official
Statement to state a material fact necessary to make the statements in the Official
10
DOCSOC\809797v3'22245.0125
Statement, in the light of the circumstances under which they were made. not
misleading; or
(ii) the marketability of the Bonds or the market price thereof, in the
opinion of the Underwriter, has been materially adversely affected by an amendment
to the Constitution of the United States or by any legislation in or by the Congress of
the United States or by the State, or the amendment of legislation pending as of the
date of this Purchase Contract in the Congress of the United States, or the
recommendation to Congress or endorsement for passage (by press release, other
fonn of notice or otherwise) of legislation by the President of the United States, the
Treasury Department of the United States, the Internal Revenue Service or the
Chainnan or ranking minority member of the Committee on Finance of the United
States Senate or tbe Committee on Ways and Means of the United States House of
Representatives, or the proposal for consideration of legislation by either such
Committee, or the presentment of legislation for consideration as an option by either
such Committee, or by the staff of the Joint Committee on Taxation of the Congress
of the United States, or the favorable reponing for passage of legislation to either
House of the Congress of the United States by a Committee of such House to which
such legislation has been referred for consideration, or any decision of any Federal or
state court or any ruling or regulation (final, temporary or proposed) or official
statement on behalf of the United States Treasury Department, the Internal Revenue
Service or other federal or State authority materially adversely affecting the federal or
State tax status of the Authority, the interest on bonds or notes or obligations of the
general character of the Bonds or the market price of the Bonds; or
(iii) legislation shall be enacted by the Congress of the United States, or a
decision by a court of the United States shall be rendered, or a stop order, ruling,
regulation or official statement by, or on behalf of, the Securities and Exchange
Commission or any other governmental agency having jurisdiction of the subject
matter shall be issued or made to the effect that the issuance, offering or sale of
obligations of the general character of the Bonds. or the issuance, offering or sale of
the Bonds, including all underlying obligations, as contemplated hereby or by the
Official Statement, is in violation or would be in violation of, or that obligations of
the general character of the Bonds, or the Bonds, are not exempt from registration
under, any provision of the federal securities laws, including the Securities Act of
1933, as amended and as then in effect, or that the Indenture needs to be qualified
under the Trust Indenture Act of 1939, as amended and as then in effect; or
(iv) additional material restrictions not in force as of the date hereof shall
have been imposed upon trading in securities generally by any governmental
authority or by any national securities exchange which restrictions materially
adversely affect the Underwriter's ability to market the Bonds; or
(v) a general banking moratorium shall have been established by federal
or State authorities; or
(vi) the United States has become engaged in hostilities which have
resulted in a declaration of war or a national emergency or there has occurred any
other outbreak of hostilities or a national or international calamity or crisis, financial
11
DOCSOC809,97v3\2::.5.01 :5
or otherwise, the effect of such outbreak, calamity or crisis on the financjal markets
of the United States, bejng such as, in the reasonable opinion of the Underwriter,
would affect materially and adversely the ability of the Underwriter to market the
Bonds (it being agreed by the Underwriter that there is no outbreak, calamity or crisis
of such character as of the date hereof); or
(vii) there shall be in force a general suspension of trading on the New
York Stock Exchange.
9. Closing Documents. At or prior to the Closing, the Underwriter shall receive the
follov,ing documents:
(a) Bond Counsel Opinion. Approving opinion of Best Best §l. Krieger LLP,
Bond Counsel, dated the date of the Closing and substantially in the form included in
Appendix C to the Official Statement, together with a letter from such counsel, dated the date
of the Closing and addressed to the Underwriter, to the effect that the foregoing opinion
addressed to the Authority may be relied upon by the Underwriter to the same extent as if
such opinion was addressed to the Underwriter.
(b) Supplemental Opinion. A supplemental opinion of Bond Counsel addressed
to the Authority, the City and the Underwriter and dated the date of the Closing to the
following effect:
(i) The Refunding Bonds have been duly authorized and issued by the
City and constitute the legal, valid and binding obligations of the City, enforceable in
accordance with their terms, except as enforcement thereof may be limited by
bankruptcy, insolvency or other laws affecting enforcement of creditors' righ!s and
by the application of equitable principles if equitable remedies are sought;
(ii) The Authority Documents have been duly authorized, executed and
delivered by the Authority and constitute the legal, valid and binding obligations of
the Authority, enforceable in accordance with their respective terms, except as
enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting
enforcement of creditors' rights and by the application of equitable principles if
equitable remedies are sought;
(iii) The City Documents to which the City is a party have been duly
authorized, executed and delivered by the City and constitute the legal, valid and
binding obligations of the City, enforceable in accordance with their respective terms,
except as enforcement thereof may be limited by bankruptcy, insolvency or other
laws affecting enforcement of creditors' rights and by the application of equitable
principles if equitable remedies are sought;
(iv) The statements contained in the Official Statement, on the cover page
and under the captions "INTRODUCTION," "THE PLAN OF FINANCE," "THE
BONDS," "SECURITY FOR THE BONDS," "THE REASSESSMENT DISTRlCT,"
"SPECIAL RISK FACTORS - Priority of Reassessment Liens," "CONCLUDING
IN~ORMATION Legal Opinion; Legal Matters," "CONCLUDING
Il\'1'ORMA TION - Tax Matters," and in Appendices Band C thereto, insofar as such
12
DOCSOC'.809797v3'2:,.;OI ,5
statements expressly summarize certain provisions of the Bonds, the Refunding
Bonds, the Indenture, the 2001-1 Bond Indenture, the 2001-2 Bond Indenture, the
Continuing Disclosure Agreement and the opinion of Bond Counsel, are accurate in
all material respects; provided that no opinion need be expressed with respect to any
financial or statistical information contained therein;
(v) The Bonds and the Refunding Bonds are not subject to the
registration requirements of the Securities Act of 1933, as amended, and the
Indenture, the 2001-1 Bond Indenture and the 2001-2 Bond Indenture are exempt
from qualification pursuant to the Trust Indenture Act of 1939, as amended;
(vi) The Reassessment Districts have been duly formed, and the
Reassessments have been duly and va1id1y levied in accordance with the provisions
of the Act and, except to the extent prohibited by moratorium, bankruptcy,
reorganization, fraudulent conveyance or transfer, insolvency or other similar laws
affecting creditors' rights generally, a lien to secure payment of the Reassessments
has been imposed on the specified parcels in the Reassessment Districts; and
(vii) The Refunded Bonds have been legally defeased in accordance with
each of the Refunded Bond Indentures pursuant to which the Refunded Bonds were
issued, and the owners of the Refunded Bonds have ceased to be entitled to the
pledge of assessments, and all covenants, agreements and other obligations of the
City to the owners of the Refunded Bonds under each prior bond indenture have
ceased, terminated and become void and have been discharged and satisfied; the
investment of the moneys deposited in the Escrow Fund under the Escrow Agreement
will not adversely affect the exclusion from gross income of interest on the Refunded
Bonds for purposes offederal income taxation.
(c) Authority Counsel Opinion. An opinion of the City Attorney of the City, as
counsel to the Authority, dated the date of Closing and addressed to the Undenvriter, the
Authority and the City, to the effect that:
(i) The Authority is duly organized and validly existing as a joint powers
authority under the laws of the State of California;
(ii) The Authority has full legal power and lawful authority to enter into
the Authority Documents and to carry out the transactions contemplated under the
Authority Documents;
(iii) The Authority Resolution was duly adopted at a meeting of the
governing body of the Authority, which was called and held pursuant to law and with
all public notice required by law and at which a quorum was present and acting
throughout and the Authority Resolution is in full force and effect and has not been
modified, amended or rescinded;
(iv) The Authority Documents have been duly authorized, executed and
delivered by the Authority and constitute the legal, valid and binding obligations of
the Authority enforceable against the Authority in accordance with their terms,
subject to bankruptcy, insolvency, reorganization, moratorium and other similar Jaws
13
DOCSOC809797v),'2"""5.0¡"5
affecting creditors' rights, to the application of equitable principles where equitable
remedies are sought and to the exercise of judicial discretion in appropriate cases;
(v) To the best knowledge of such counsel the execution and delivery of
the Authority Documents and the Official Statement and compliance with the
provisions thereof under the circumstances contemplated thereby, (a) do not in any
material respect conflict with or constitute on the part of the Authority a breach of or
default under any agreement or other instrument to which the Authority is a party or
by which it is bound, and (b) do not and will not in any material respect or constitute
on the part of the Authority a violation, breach of or default under any court order or
consent decree to which the Authority is subject;
(vi) The. Authority Documents and the Official Statement have been duly
authorized by the Board of Directors of the Authority and executed on its behalf by
an authorized officer of the Authority;
(vii) Except as may be stated in the Official Statement, there is no action,
suit proceeding or investigation before or by any coun, public board or body pending
(notice of which has been served on the Authority) or, to my knowledge, threatened
wherein an unfavorable decision, ruling or finding would: (a) affect the creation,
organization, existence or powers of the Authority, or the titles of its members and
officers to their respective offices; (b) enjoin or restrain the issuance, sale and
delivery of the Bonds, the levy and collection of the Revenues or the pledge thereof;
(c) in any way question or affect any of the rights, powers, duties or obligations of the
Authority with respect to the Revenues or the monies and assets pledged or to be
pledged to pay the principal of, premium, if any, or interest on the Bonds; (d) in any
way question or affect any aUthority for the issuance of the Bonds, or the validity or
enforceability of the Bonds: or (e) in any way question or affect the Authority
Documents or the transactions contemplated by the Authority Documents, the
Official Statement or any activity regarding the Bonds; and
(viii) With respect to the infonnation in the Official Statement concerning
the Authority and the Authority Proceedings, without having undertaken to determine
independently the accuracy, completeness or fairness of such information, nothing
has come to the aIIention of the City AIIorney as of the date of Closing which would
lead the City AIIorney to believe that such information (excluding therefrom any
financial statistical data and forecasts included therein, as to which no opinion need
be expressed) contains any untrue statement of a material fact or omits to state a
material fact necessary to. make the statements therein, in the light of the
circumstances under which they were made, not misleading.
(d) City Attorney Opinion. An opinion of the City Attorney of the City, dated
the date of Closing and addressed to the Underwriter, the Authority and the City, to the effect
that:
(i) The City is a political subdivision duly organized and existing under
the Constitution and laws of the State of California;
14
OCCSOC809ï9ïv312245.0125
(ii) The Resolution of Intention, the Resolution Confinning
Reassessments and the Resolution of Issuance (the "City Resolutions") fonning the
Reassessment District and approving and authorizing the execution of the City
Documents have been duly adopted at meetings of the City Council, which were
called and held pursuant to law with all public notice required by law and at which a
quorum was present and acting throughout and such City Resolutions are in full force
and effect and has not been modified, amended or rescinded;
(iii) The City Documents and the Official Statement have been duly
authorized by the City Council and execUted on its behalf by an authorized officer of
the City;
(iv) Except as may be stated in the Official Statement, there,is no action,
suit, proceeding or investigation before or by any court, public board or body pending
(notice of which has been served on the City) or, to such counsel's knowledge,
threatened wherein an unfavorable decision, ruling or finding would: (a) affect the
creation, organization, existence or powers of the City, or the tirles of its members
and officers to their respective offices: or (b) affect the validity of the City
Documents or restrain or enjoin the repa"ment of the Refunding Bonds or in any way
contest or affect the validity of the City Documents or contest the authority of the
City to enter into or perfonn its obligations under any of the City Documents, or
under which a detennination adverse to the City would have a material adverse affect
upon the financial condition or the revenues of the City, or which, in any manner,
questions the right of the City to use the unpaid Reassessments levied within the
Reassessment District for repayment of the Refunding Bonds or affects in any
manner the right or ability of the City to collect or pledge the unpaid Reassessments
levied within the Reassessment District:
(v) With respect to the discussion in the Official Statement, insofar as
such discussion purports to summarize infonnation concerning the City, the City
Proceedings, the City Documents and the Reassessment District, without having
undertaken to detennine independently the accuracy, completeness or fairness of the
discussion relating to such matters, nothing has come to the attention of such counsel
as of the date of Closing which would lead such counsel to believe that such
discussion (excluding therefrom any financial statistical data and forecasts included
therein, as to which no opinion need be expressed) contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they were made. not
misleading; and
(e) Underwriter's Counsel Opinion. An opinion, dated the date of the Closing
addressed to the Underwriter, of Stradling Yocca Carlson & Rauth, a Professional
Corporation, counsel to the Underwriter, to the effect that: (i) the provisions of Continuing
Disclosure Certificate comply with the requirements of Rule l5c2-12 under the Securities
Act of 1934, (ii) the Bonds are not subject to the registration requirements of the Securities
Act of 1933, as amended, and the Indenture is exempt from qualification pursuant to the'
Trust Indenture Act of 1939, as amended, and (iii) although such counsel have not verified
and are not passing upon, and do not assume any responsibility for, the accuracy,
completeness or fairness of the infonnation contained in the Official Statement, they have
15
DOCSOc,809797vJ'>2:2.5.01 25
participated in the preparation of the Official Statement and without independent verification,
no facts came to their attention that caused them to believe that the Official Statement (except
for financial, engineering, appraisal and statistical data contained therein or included therein
by reference or any litigation disclosed therein, and information regarding The Depository
Trust Company, and its book entry system and the Insurer and its municipal bond insurance
policy, as to which they express no view) as of its date contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading.
(f) Trustee and Fiscal Agent Counsel Opinion. The opinion of counsel to the
Trustee and Fiscal Agent, dated the date of the Closing, addressed to the Authority, the City
and the Underwriter, to the effect that:
(i) The Trustee and Fiscal Agent is a national banking association, duly
organized and validly existing under the laws of the United States, having full power
to enter into, accept and administer the trust created under the Indenture and to enter
into the 2001-1 Bond Indenture, the 2001-2 Bond Indenture and the Escrow
Agreement;
(ii) Assuming due execution by the other parties thereto, the Indenture,
the 2001-1 Bond Indenture, the 2001-2 Bond Indenture and the Escrow Agreement
have been duly authorized, executed and delivered by the Trustee and Fiscal Agent
and constitute the legal, valid and binding obligations of the Trustee and Fiscal Agent
enforceable in accordance with their respective terms, except as enforcement thereof
may be limited by bankruptcy, insolvency or other laws affecting the enforcement of
creditors' rights generally and by the application of equitable principles, if equitable
remedies are sought;
(iii) No consent, approval, authorization or other action by any
governmental or regulatory authority having jurisdiction over the Trustee and Fiscal
Agent that has not been obtained is or will be required for the execution and delivery
of the Indenture, the 2001-1 Bond Indenture, the 2001-2 Bond Indenture, the Escrow
Agreement or the consummation of the transactions contemplated by such
documents;
(iv) To the best knowledge of the Trustee and Fiscal Agent after due
inquiry, the execution and delivery by the Trustee and Fiscal Agent of the Indenture,
the 2001-1 Bond Indenture, the 2001-2 Bond Indenture, the Escrow Agreement and
compliance with the terms thereof will not conflict with, or result in a violation or
breach of, or constitute a default under, any loan agreement, indenture, bond, note,
resolution or any other agreement or instrument to which the Trustee and Fiscal
Agent is a party or by which it is bound, or any law or any rule, regulation, order or
decree of any court or governmental agency or body having jurisdiction over the
Trustee and Fiscal Agent or any of its activities or properties (except that no
representation, waITanty or agreement is made by the Trustee and Fiscal Agent with
respect to any federal or state securities or blue sky laws or regulations); and
16
DOCSOC\809797v 3\222.5.0125
(v) To the best knowledge of the Trustee and Fiscal Agent after due
inquiry, there is no action, suit, proceeding or investigation, at law or in equity,
before or by any court or governmental agency, public board or body pending against
the Trustee and Fiscal Agent or threatened against the Trustee and Fiscal Agent
which in the reasonable judgment of the Trustee and Fiscal Agent would affect the
existence of the Trustee and Fiscal Agent or in any way contesting or affecting the
validity or enforceability of the Indenture, the 2001-1 Bond Indenture, the 2001-2
Bond Indenture, the Escrow Agreement or contesting the powers of the Trustee and
Fiscal Agent or its authority to enter into and perform its obligations under such
documents.
(g) Reassessment Engineer Certificate. The certificate of MuniFinancial,
Reassessment Engineer, dateli the date of the Closing, aliciressed to the Authority, the City
and the Underwriter, (A) to the effect that based upon the information provided to such firm
as the reassessment consultant to the City in the course of their participation in the
preparation of the Official Statement and without having undertaken to determine
independently the accuracy or completeness of the statements contained in the Official
Statement relating to information not furnished by it, said firm has no reason to believe that
the Official Statement as of the date of the Official Statement omitted, or as of the dare of
Closing omits, to state any material fact required to be stated therein or necessary to make the
statements therein relating to the Reassessment District, in light of the circumstances under
which they were made, not misleading, and (B) consenting to the inclusion of such firm's
reassessment diagram in the Official Statement and stating that to the best of such firm's
knowledge, nothing has come to such firm's attention between the date of such diagram and
the date hereof which would materially alter any of the information or conclusions set forth
in such diagram and, (c) to the effect that data provided by such firm and presented in the
Official Statement, including the information presented in Tables 1,2,3,4,5,6 and 8 of the
Official Statement are true, correct and accurate.
(h) Authority Certificate. A certificate of the Authority, dated the date of the
Closing, and signed by an authorized officer of the Authority ratifying the use of and
distribution by the UndemTiter of the Preliminary Official Statement and the Official
Statement in connection "ith the offer and sale of the Bonds, and to the effect that:
(i) The representations and warranties of the Authority contained herein
are true and correct in all material respects on and as of the date of the Closing as if
made on the date of the Closing;
(ii) The Authority Proceedings are in full force and effect and have not
been amended, modified or supplemented;
(iii) The information regardjng the Authority in the Official Statement is
true and correct;
(iv) The Authority has complied with all agreements and covenants, and
satisfied all conditions, on its part tp be complied with or satisfied hereunder at or
prior to the Closing;
17
DOCSOC 809797v]\2"2"501 C5
(v) Nothing has come to the attention of the Authority which would lead
it to believe that the infonnation in the Official Statement contains any untrue
statement of a material fact or omits to slate a material fact necessary to make the
statements therein, in the light of the circumstance under which they were made, not
misleading.
(i) City Certificate. A certificate of the City, dated the date of the Closing and
signed by an authorized official of the City to the effect that:
(i) The representations and warranties of the City contained herein and in
the Local Obligation Purchase Contract are true and correct in all material respects on
and as of the date of the Closing as if made on the date of the Closing;
(ii) The proceedings of the City relating to the Bonds and th~ Refunding
Bonds are in full force and effect and have not been amended, modified or
supplemented;
(iii) The infonnation regarding the City. including, but not limited to, the
City Documents, the Refunding Bonds and the Reassessment Districts, in the Official
Statement is true and correct;
(iv) The City has complied with all agreements and covenants, and
satisfied all conditions, on its part to be complied with or satisfied hereunder at or
prior to the Closing;
(v) With respect to the discussion in the OÎficial Statement, insofar as
such discussion purports to summarize infonnation concerning the City, the
Reassessment District, the Refunding Bonds and the City Documents, nothing has
come to the attention of the City as of the date of Closing which would lead it to
beJieve that such discussion contains any untrue statement of a material fact or omits
to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
OJ Trustee's Certificate. A certificate of the Trustee and Fiscal Agent, dated
the date of Closing, addressed to the City, the Authority and the Underwriter to the following
effect:
(i) The Trustee and Fiscal Agent is duly organized and existing as a
national banking association in good sIanding under the laws of the United States,
having the full power and authority to accept and perfonn its duties under the
Indenture, the 2001-1 Bond Indenture, the 2001-2 Bond Indenture and the Escrow
Agreement;
(ii) The Indenture, the 2001-1 Bond Indenture, the 2001-2 Bond
Indenture and the Escrow Agreement have been duly authorized, executed and
delivered by the Trustee and Fiscal Agent and constitute the legal, valid and binding
obligations of the Trustee and Fiscal Agent enforceable in accordance with their
respective terms, except as enforcement thereof may be limited by bankruptcy,
18
DOCSOC\80979ïv3\22245.0 125
insolvency or other laws affecting enforcement of creditors rights, or by the
application of equitable principles if equitable remedies are sought;
(iii) The Trustee and Fiscal Agent is duly authorized to accept the
obligations created by the Indenture, the 2001-1 Bond Indenture, the 2001-2 Bond
Indenture and the Escrow Agreement, and to authenticate the Bonds pursuant to the
terms of the Indenture and the Refunding Bonds pursuant to the terms of the 2001-1
Bond Indenture and the 2001-2 Bond Indenture; and
(iv) No consent, approval, authorization or other action by any
governmental or regulatory authority having jurisdiction over the Trustee and Fiscal
Agent that has not been obtained is or will be required for the authentication of the
Bonds or the consummation by the Trustee and Fiscal Agent of the other transactions
contemplated to be performed by the Trustee and Fiscal Agent in connection with the
authentication of the Bonds and the Refunding Bonds and the acceptance and
performance of the obligations created by the Indenture, the 2001-1 Bond Indenture,
the 2001-2 Bond Indenture and the Escrow Agreement.
(k) Official Statement. The Official Statement and each supplement or
amendment, if any, thereto, executed on behalf of the Authority by a duly authorized officer
of the Authority.
(1) Documents. An original executed copy of each of the Authority Documents
and each of the City Documents.
(m) Verification Letter. A letter addressed to the Authority and the City, dated
the date of the Closing, from [VERIFICATION AGENT], (the "Verification Agent")
verifying the accuracy of (i) the mathematical computations concerning the adequacy of the
maturing principal amounts of the government obligations, together with other moneys, if
any, to be deposited with the City in the Redemption Funds for each of the Refunded Bonds
to pay when due pursuant to the stated maturity or call for redemption the principal of .and
interest and premium with respect to the Refunded Bonds, and (ii) the mathematical
computations of the yield on the Bonds and the yield on the government obligations
purchased with a portion of the proceeds of the sale of the Bonds and used in part by Bond
Counsel in concluding that interest on the Bonds is excludable from gross income for federal
income tax purposes under presently existing law, regulations, decisions and official
interpretations, including the "arbitrage" regulations promulgated and proposed under
Section 148(a) of the Internal Revenue Code of 1986, as amended, or any successor thereto.
(n) Rating Letter. R..atings from S&P and Moody's of "AAA" and "Aaa,"
respectively, with respect to the Series A Bonds.
(0) Nonarbitrage Certificate. A nonarbitrage certificate prepared by Bond
Counsel and satisfactory to the Authority and Underwriter.
(p) Bond Insurer's Counsel Opinion. An opinion addressed to the Authority,
the City and the Underwriter, dated the Closing Date, of counsel to the Bond Insurer to the
effect that the Financial Guaranty Insurance Policy described in the Official Statement is a
19
DOCSOC809797v3\222. j.OI25
legal, vaJid and binding obJigation of the Bond Insurer enforceable in accordance with its
tenDs.
(q) Bond Insurer's Certificate. A certificate addressed to the Authority, the
City and the Underwriter, dated the Closing Date, of an officer of the Bond Insurer to the
effect that the statements in the Official Statement under the caption "BOND INSURAc'lCE
FOR SERIES A BONDS," and Appendix E - "INSURANCE POLICY SPECIMEN"
accurately reflect and fairly present the infonnation purported to be shown therein.
(r) Additional Documents. Such additional legal opinions, certificates,
instruments and other documents as Bond Counselor the Underwriter may reasonably deem
necessary.
If the Authority or the City shall be unable to satisfy the conditions contained in this Purchase
Contract and if such unsatisfied conditions have not been waived by the Underwriter, or if the
obligations of the Underwriter shall be tenninated for any reason pennitted by this Purchase
Contract, this Purchase Contract shall tenninate and none of the Underwriter, the City or the
Authority shall be under further obJigation hereunder, except as further set forth in Section 10 hereof.
10. Costs and Expenses.
(a) The Underwriter shall be under no obligation to pay, and the Authority and
the City shall payor cause to be paid the respecrive expenses incident to the perfonnance of
the Authority's and City's obligarions hereunder: (i) the costs of the preparation and printing
of the Bonds, (ii) the fees and disbursements of Best Best & Krieger LLP, San Diego,
California, Bond Counsel, of the City Attorney of the City, and counsel to the Authority,
(iii) the cost of prepararion, prinring and mailing of the Preliminary Official Statement and
Official Statement and any supplements and amendments thereto, inc1uding a reasonable
number of copies thereof for distriburion by the Underwriter: and (iv) .the fees and
disbursements of accountants, advisers and any other experts or consultants retained by the
Authority or the City with respect to the Bonds.
(b) The Underwriter shall pay the following expenses: (i) all advertising
expenses in connection with the public offering of the Bonds; and (ii) all other expenses,
CDIAC fee, CUSIP fees (inc1uding out-of-pocket expenses and related regulatory expenses),
incuITed by the Underwriter in connection with the public offering and distribution of the
Bonds, inc1uding fees and disbursements of Stradling Yocca Carlson & Rauth, a Professional
Corporarion, counsel to the Underwriter.
11, Notice. Any norice or other communication to be given to the Authority or the City
under this Purchase Contract may be given by delivering the same in writing to such enrities at Cjty
ofChula Vista, 276 Fourth Avenue, Chula Vista, California 91910, Attention: Deputy City Manager.
Any notice or other communicarion to be given to the Underwriter under this Purchase
Contract may be given by delivering the same jn writing to Stone & Youngberg LLC, 4350 La Jolla
Village Drive, Suire 140, San Diego, California 92122, Attention: Bill Huck.
12. Survival of Representations and Warranties. The representarions and wammties
of the Authority and the City set forth in or made pursuant to this Purchase Agreement shall not be
20
DOCSOC809797v3'222"5.0125
deemed to have been discharged, satisfied or otheD,ise rendered void by reason of the Closing or
tennination of this Purchase Agreement and regardless of any investigations made by or on behalf of
the Underwriter (or statements as to the results of such investigations) concerning such
representations and statements of the City or the Authority and regard]ess of delivery of and the
payment for the Bonds. All statements contained in any certificate, instrument or other writing
delivered by a party to this Purchase Contract or in connection with the transactions contemplated by
this Purchase Contract constitute representations and warranties by such party under this Purchase
Contract.
13. Entire Agreement. This Agreement is made solely for the benefit of the Authority,
the City and the Underwriter (including their respecrive successors and assigns), and no other person
shall acquire or have any right hereunder or by vinue hereof. This Agreement contains the enrire
agreement between the parties with respect to the matters set forth herein and, supersedes and
replaces all prior negotiations, agreements and understandings between the parties hereto in re1arion
to the sale of the Bonds.
14. Severability. In case anyone or more of the provisions contained herein shall for
any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegaliry or
unenforceability shall not affect any other provision hereof.
15. State of California Law Governs. The validity, interpretation and perfonnance of
this Purchase Contract shall be governed by the laws of the State of California.
16. No Assignment. The rights and obiigarions created by this Purchase Contract shall
not be subject to assignment by the Underwriter, t.i¡e Ciry or the Authority without the prior written
consent of the other parties hereto.
17. Counterparts. This Purchase ComraC! and any amendment hereto may be executed
by the parties hereto in separate counterparts, each of which when so executed and delivered shall be
an original, but all such counterparts shall together constitute but one and the same instrument.
STONE & YOUNGBERG HC
By:
Managing Director
Accepted as of the date first stated above:
CHULA VISTA PUBLIC
FINANCING AUTHORlTY
By:
21
DOCSOC\809797vJ"22245.0 125
CITYOFCHULA VISTA
By:
Robert Powell
Deputy City Manager
22
DOCSOC'809797v J1222.50 125
EXHIBIT "A"
CHULA VISTA PUBLIC FINA_NCING AUTHORITY
REFUl';'DING REVEl'i'UE BOl'i'DS
(2001 ASSESSMENT DISTRICTS REFINAl'lCING)
$
SERIES A SENIOR LIEN BOl"DS
Maturity Date
(September 2) Principal Interest Rate Price
S
SERIES B SUBORDI"iATE LIEN ROc'iDS
Maturity Date
(September 2) Principal Interest Rate Price
A-I
DOCSOC809797v3\222"50 125
SYC&R DRAFT OF 7/2/01
PRELIMINARY OFFICIAL STA TDIDiT DATED JUL Y ---' 2001
!'EW ISSUE- BOOK-E!'TRY ONL Y RATINGS: Series A Bonds Iosured Ratings:
Moody's: Aaa S&P: AAA
Series B Bonds: NOT RATED
See "Series A Ratings" herein
In the opinion of Best Best & Krieger, LLP, Son Diego, California, Bona Counsel, subject to certain qualifications described herein, under e.,"ring laws,
.gulations, rulings and court dec"io,"" interesr on the Bonds" excluded from gross income for federal income rax purposes and" not an iremfar purposes
of the Jederal alternative minimum tax imposed on individuals and corporatior.:;, although Jar the purpose oj computing the alternative minimum tax imposed
on cmain corparalions, such interest Is taken into account in determining cmain income and earnings, In theJurtheropinion oJBond Counsel, such interest
is exempt Jrom California personal income taxes, See the information contained herein under the caption "CONCLUDING INFORMA TION - Tax Matters"
and the Jorm oj opinions oj Bond Counsel attached hereto as Exhibit F.
COUNTY OF SAN DIEGO STATE OF CALIFORNIA
CHULA VISTA PUBLIC FINANCING AUTHORlTY
REFUNDING REVENUE BONDS
(2001 ASSESSMENT DISTRlCfS REFINANCING)
$ - ' Series A Senior Lien Bonds
$ . Series B Suhordinate Lien Houds
Dated: DateofDelivery Due: September 2. as shown on the inside .over page
The Chula ViS1a Public Financing Authority Refunding Revenue Bonds 12001 Assessment Disuicts Refinancing), Series A Senior Lien Bonds and Series B
Subordinate Lien Bonds (together. the "Bonds"), are being issued by the Chula ViS1a Public Financing Authority (the "Authority") pursuant to an Indentur< of Trust,
dated as of August I, 2001 (the "Indentur<"), by and between the Authority and U.S, Bank Trust National Association. as truste< (the "Trustee"). and will be se,ur<d as
described herein. The Bonds are being issued to purohaselimited obligation r<funding bonds descn"bed herein (the "Acquir<d Obligations'), The Acquired Obligations
are being issued by the City of Chula Vista (the "City") pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds (Division 11.5 of the California
Streets and Highways Code) (the "Ad), and will be secur<d by certain unpaid reassessments lev;ed by the City pursuant to the Ace The Acquired Obligations are
bemg issued to r<fund certain outstanding limited obligation improvement bonds of the City. See "THE PL~N OF FINANCE" hmin,
The Bonds ~;ll be issued in book-<ntry fonn, inirial1y r<gistered in the name of Cede & Co.. New York, New Yacko as nominee of The Depository Trust
Company ("DTC"). New York. New York. Interest on the Series A Bonds wiiJ be payable on SCDtember 2 and March 2 of e:lch y""', commencing March 2,2002.
Purohasers will not =eive certificates repr<senting their int.,..,st in the Bonds. Indiv;dual purohases of Bonds will be in pnncipal amounts of 55.000 or in any integral
multiple of 55,000. Payments of pnnc'pal and interest will be paid by the Trust« to DTC for subsequent disbursement to DTC Panicipants who wiil remit such
payments to the beneficial ovmers of the Bonds.
Tne Bonds are subject to oprionai and mandatOry sinking fund redemption ono, w maturity as set fonh hmin. See "THE BONDS - Redemption" herein.
Payment of the principal of and interest on the Series A Bonds when due ~ill be insured by a financial guaranty insurance poiicy to be issued by [Insum]
simultaneously ~;th the delive", of the Series A Bonds.
(BOND Il'iSL"RER LOGO)
PA YMENT OF THE SERIES B BONDS IS NOT SECURED BY THE FI?-:ANCIAL GUARANTY rNSURANCE POLICY. THE SERIES B BONDS ARE
JT RATED BY A~'Y RATING AGENCY. fl'NOLVE A HIGH DEGREE OF RlSK AND ARE NOT SUlTABLE FOR ALL INVESTORS. SEE "SPECL~L RlSK
,CTORS" and "SPECIAL RlSK FACTORS SPECIFIC TO SERIES B BONDS.",
The Series A Bonds are payable solely from Revenues of the Authority, consisting of debt service payments on the Acquired Obligarions received by the
TruStee. as the registered owner of the Acquired Obliganons. The Sones B Bonds are payable from Revenues of the Authority, consisting primarily of
Revenues. less amounts needed to pay principal of. premium. if any. and inte-:est on the Series A Bonds. Debt service payments on ,he Acquired Obligations
are calculated to be sufficient to permit the Authority to pay debt service on the Bonds when due. The City has determmed that it will not obligate itself to
advance funds from its treasury to cover any delinquency on the Acquired Obligarions.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF TtiE CITY, THE STATE OF CALIFOR.1>¡L~ OR ANY POLITICAL SlJBDlVISION
THEREOF IS PLEDGED TO THE PA YMENT OF THE BONDS. THE AUTHORlTY HAS NO TAXING POWER EXCEPT FOR THE REVBJUES AND THE
SUBORDINATED REVEN1.iES, NO OTHER REVENUES OR TAXES ARE PLEDGED TO THE PAYMENT OF THE BONDS. THE BONDS ARE NOT
GENERAL OR SPECIAL OBLIGATIONS OF THE CITY NOR GENERAL OBLIGATIONS OF THE AUTHORlTY, BUT ARE LIMITED OBLIGATIONS OF
THE AUTHORlTY PAYABLE EXCLUSIVELY FROM REVENUES AND SUBORDINATED REVENUES AS PROVIDED IN THE INDENTURE, AS MORE
FULLY DESCRIBED HEREIN. THE ACQUIRED OBLIGATIONS OF E~CH ISSUE ARE LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY
FROM THE REASSESSMENTS LEVIED WITHIN THE REASSESSMENT DISTRICTS AND THE OTHER ASSETS PLEDGED THEREFOR UNDER THE
BOND rNDENTURE PURSUANT TO WHICH SUCH ACQUIRED OBLIGATIONS ARE ISSUED. NEITHER THE FAITH AND CREDIT NOR THE TAXING
POWER OF THE CITY OR THE STATE OF CALIFORNIA, OR ANY POUTICAL SUBDrvISION THEREOF, IS PLEDGED TO THE PAYMENT OF THE
ACQUlRED OBLIGATIONS.
See the s""tion of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion of certain risk factOrs that should be considered in
addition to the other matt"" set foM herein when evaluating the investment quality of the Bonds generally and the s""rion of this Official Statement enritled
"SPECIAL RISK FACTORS SPECIFIC TO SERIES B BONDS" for eeruin risk factors that relate to the Series B Bonds in panicular. This cover page
contains ceru"n infonnation for quick reference only. It is not a complete summary of the Bonds. Investors should r<ad the entire Official Statement to
obtain infonnation essential to the making of an infonned investment decision.
MATURITY SCHEDULE
(See inside cover)
The Bonds are offered, when, as and if issued and accepted by the Underwriter, subject to approval as to their validity by Best Best & Krieger,
LLP, San Diego, California, Bond Counsel, and subject to certain other conditions. Certain legal matters will be passed upon for the Authority and the City
by the City Attorney and for the Underwriter by Stradling Yocca Carlson & Rauth. a Professional Corporation, Newpott Beach, California. It is anricipated
that the Bonds will be available for delivery in book.entry fonn in New York. New York, on or about September 4. 2001.
Stone & Youngberg LLC
ated, July _.1001
Preliminary. subject to change.
MATURITY SCHEDULE
$ SERIES A BONDS
Maturity Date Principal IntereSt Maturity Date Principal Int=St
~ Amount R:lte Price (Septeml= 2) Amount R:lte Price
--
$ - SERIES B BONDS
Maturity Date Principal IntereSt MatUrityD"e Principal Int=St
~) Amount R:lte Pnce (SeOtember2) Amount R:lte Price
--
DOCSOC\806564v9\22245.0 125
CITY OF CHULA VISTA
CITY COUNCIL
Shirley G" Horton, Mayor
Jerry Rindone, Councilmember
Patty Davis, Councilrnernber
Mary Salas, Councilrnember
Stephen C. Padilla, Councilrnernber
CITY OFFICIALS
David D. Rowlands, Jr., City Manager
Sid Morris, Assistant City Manager
George Krernpl, Assistant City Manager
Susan Bigelow, City Clerk
John Kaheny, City Attorney
Robert Powell, Deputy City Manager/Director of Finance
John Lippitt, Director of Public Works
CHULA VISTA PUBLIC FINA..c'lCING AUTHORITY
BOARD OF DIRECTORS
Shirley G. Horton, Chair
Jerry Rindone, Director
Patty Davis, Director
Mary Salas, Director
Stephen C. Padilla, Director
David D. Rowlands, Jr., Executive Director
Susan Bigelow, Secretary
Bond Counsel Financial Advisor to the City
Best Best & Krieger, LLP Sutro & Co. Incorporated
San Diego, California Los Angeles, California
Reassessment Engineer Verification Agent
MuniFinancial Grant Thornton
Temecula, California Minneapolis, Minnesota
Trustee
U.S. Bank Trust National Association
Los Angeles, California
DOCSOC\806564v9"Q1145.0115
No dealer, broker, salesperson or other person has been authorized to give any infonnation or to make
any representations, other than as contained in this Official Statement, and if given or made, such other
infonnation or representations must not be relied upon as having been authorized by the Authority or the City.
This Official Statement does not constjtute an offer to sell or the solicitation of an offer to buy, nor shall there
be any sale of, the Bonds by any person in any jurisdiction in which it is unlawful for such person to make
such offer, solicitation or sale.
The infonnation set forth herein which has been obtained from parties other than the Authority and the
City which are believed to be reliable but is not guaranteed as to accuracy or completeness by the Authority or
the City. The infonnation and expressions of opinion stated herein are subject to change without notice. The
delivery of this Official Statement shall not, under any circumstances, create any implication that there has
been no change in the affairs of the Authority, the City or the Reassessment Districts since the date hereof.
The Underwriter has provided the following sentence for inclusion in this Official Statement:
The Underwriter has reviewed the infonnation in this Official Statement in accordance with, and as a
part of its responsibilities to investors under the federal securities laws applied to the facts and circumstances
of this transaction, but the Underwriter does not gua."a¡ltee the accuracy or completeness of such infonnation.
The infonnation herein relating to the Bonès. the Reassessment Districts, the Authority, and the City
does not purport to be comprehensive or definitive. All references to the Bonds are qualified in their entirety
by reference to the IndentUre setting forth the tenDS a.."d descriptions thereof. The summaries and references to
any code, act, resolution, the Indenture or the Bond IndentUre (as defmed herein), and to other statutes and
documents in this Official Statement do not purpott to be comprehensive or defmitive. and are qualified in
their entirety by reference to each statute and document.
IN CONNECTION WITH THIS BO),l) UNDERWRiTING, THE 1]Nl)ERWRlTER ~l""'Y
OVERALLOT OR EFFECT TRA,'iSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET
PRlCE OF THE BO"Nl)S DESCRlBED HEREIN AT A LEVEL lillOVE THAT WHICH MIGHT
OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE
DISCONTIN1.iED AT My TIME.
DOCSOC'806564v9'22245.0 125
[AREA MAP TO COME]
DOCSOC\80656->v9122245.0125
CHULA \lSTA PUBLIC FIl'ìA.l'S'CING AUTHORITY
REF'lJ1'<ì)L'S'G REVEì'<'UE BONDS
(2001 Assessment Districts Refinancing)
$ . Series A Senior Lien Bonds
$ Series B Subordinate Lien Bonds
INTRODUCTION
Summary
This Official Statement is provided to furnish certain information in connection with the issuance and
sale by the Chula Vista Public Financing Authority (the "Authority"), of $ . aggregate principal
amount of Chula Vista Public Financing Authority Refunding Revenue Bonds (2001 Assessment Districts
Refmancing), Series A Senior Lien Bonds (the "Series A Bonds"), and $ . aggregate principal
amount of Chula Vista Public Financing Authority Refunding Revenue Bonds (200f Assessment Districts
Refinancing), Series B Subordinate Lien Bonds (the "Series B Bonds" and, together with the Series A Bonds,
the "Bonds").
The Bonds will be issued pursuant to the provisions of an Indenture of Trust, dated as of June 1,2001
(the "Indenture"), by and between the Authority and U.S. Bank Trust National Association, as trustee (the
"Trustee"). The Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, as
2JI1ended, constituting Article 4 of Chapter 5, Division 7, Title I of the California Government Code (the
"Bond Law"). Capitalized undefmed terms used herein shall have the meanings ascribed thereto in the
Indenture.
Reassessment District 2001-1 of the City of Chula Vista (the "Reassessment District 2001-1") and
Reassessment District 2001-2 of the City of Chula Vista (the "Reassessment District 2001-2," and together
with Reassessment District 200 I-I, the "Reassessment Districts") lie directly east of the Interstate 805 in the
City of Chula Vista. Reassessment District 2001-1 consists of approximately - acres and Reassessment
District 2001-2 consists of approximately - acres. The land within Reassessment District 2001-1 is
primarily residential jn nature. while the land in Reassessment District 2001-2 is primarily
commercial/industrial in nature. The boundaries of the Reassessment District 2001-1 are coterminous with the
combined boundaries of three of the Original Assessment Districts: Assessment District No. 90-1, Assessment
District No. 90-3 and Assessment District No. 91-1. The boundaries of Reassessment District 2001-2 are
coterminous with the combined boundaries of the other three Original Assessment Districts: Assessment
Djstrict No. 88-1, Assessment District No. 90-2 and Assessment District No. 92-2. The land within the
Reassessment Districts has been reassessed to refund seven series of bonds (the "Refunded Bonds") issued by
the City of Chula Vista (the "City") on behalf of the Original Assessment Districts for the purpose of fmancing
the acquisition and construction of various public improvements. See "THE REASSESSMENT DISTRlCT-
General" and "THE PLAN OF FINANCE". .
The land within the Reassessment Districts is mostly developed. Based on information trom the San
Diego County Assessor's office, as of January I, 2000, and as partially updated by MuniFinancial, there were
approximately 3,302 parcels of developed residential property, II parcels of developed commercial properties,
53 parcels of developed industrial property, 4 parcels of developed recreational property, a church parcel, a
school parcel and I parcel of agricultural property in the Reassessment Districts. The remaining property
within the Reassessment Districts is undeveloped and is planned for residential, commercial and industrial
development or utility property. See "THE REASSESSMENT DISTRlCTS - Land Uses and Development
Status and Estimates Assessed Value-to-Lien Ratios."
Preliminary, subject to change.
1
DOCSOC'.80656-'v9\122"5.0125
Approximately 75% of the Reassessments are secured by liens on developed property within the
Reassessment Districts and approximately 2S%* of the Reassessments are secured by liens on undeveloped
property within the Reassessment Districts. Approximately 84%* of the Reassessments levied in
Reassessment District 2001-1 are secured by liens on developed property, and approximately 16%* of the
Reassessments are secured by liens on undeveloped property. Approximately 57%* of the Reassessments
levied in Reassessment District 2001-2 are secured by liens on developed property and approximately 43% of
the Reassessments are secured by liens on undeveloped property. The combined assessed value-to-lien ratio
for both developed and undeveloped property within the Reassessment Districts exceeds 29 to 1. However,
assessed value-to-lien ratios on individual properties may vary significantly. See "REASSESSMENT
DISTRICTS - Land Uses and Development Status and Estimated Assessed Value-to-Lien Ratios" and
"SPECIAL RISK FACTORS--Value-to-Lien Ratios."
Acquired Obligations
The proceeds from the sale of the Bonds will be used primarily to purchase $ aggregate
principal amount of the City of ChuJa Vista Reassessment District of 2001-1, Limited Obligation Refunding
Bonds (the "2001-1 Refunding Bonds") and $ aggregate princjpal amount of the City of Chula
Vista Reassessment District 2001-2, Limited Obligation Refunding Bonds (the "2001-2 Refunding Bonds" and
together with the 2001-1 Refunding Bonds, the "Refunding Bonds").
The Refunding Bonds are being issued by the City pursuant to the Refunding Act of 1984 for 1915
Improvement Act Bonds (Division 11.5 of the California Streets and Highways Code) (the "Act") and separate
Bond Indentures, dated as of 1,2001 (collectively, the "Bond Indenrures"), by and betWeen the City and U.S.
Bank Trust National Association, as fiscal agent (the "Fisd Agent"), and will be separately secured by certain
unpaid reassessments (the "Reassessments") levied by t."e City pursuant to the Act on certain parcels within
the related Reassessment District.
Tbe Bonds
The proceeds of the Bonds will be used to: (a) acquire the Acquired Obligations from the City,
(b) pay costs of issuance, including the premium on a fmancia! guaranty insurance policy for the Series A
Bonds and a surety bond to fund the reserve fund for the Series A Bonds and (c) to fund a reserve fund for the
Series B Bonds. The principal and interest payments received by the Authority as the owner of the Acquired
Obligations are the primary source of funds to repay the Bonds.
The Bonds are payable from and secured by the Revenues of the Authority with the Series A Bonds
having a senior lien thereon and the Series B Bonds ha\ing a subordinate lien thereon. "Revenues" is defmed
under the Indenture to mean (i) all amounts derived from or with respect to the Acquired Obligations, (ii) the
Original Assessment Districts Residual Assessment Ins!al1ments, (iii) investment income with respect to any
moneys held by the Trustee in the funds and accounts e".ablished under the Indenture, except the Rebate Fund,
and (iv) any other investment income received under the Indenture. See "SECURITY FOR TIΠBONDS."
The scheduled payment of principal of and interest on the Series A Bonds when due will be insured by
a Financial Guaranty Insurance Policy (the "Series A Bond Insurance Policy") to be issued concurrently with
the delivery of the Series A Bonds by [INSURER] ("Series A Bond Insurer"). See "BOND INSURANCE
FOR SERIES A BONDS." PAYMENT OF TIΠSERIES B BONDS IS NOT SECURED BY THE
SERIES A BOND INSURANCE POLICY.
NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF THE CITY, THE STATE
OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS PLEDGED TO TIΠPAYMENT
OF THE BOl'mS. THE AUTHORITY HAS NO T AXDiG POWER. EXCEPT FOR THE REVENUES AND
. Preliminary. subject to change.
DOCSOC\80656.\v91222"'.0125
THE SUBORDINATED REVENUES, NO OTHER REv'ENUES OR T.'\XES ARE PLEDGED TO THE
PAYMENT OF THE BONDS. THE BONDS ARE NOT GENERAL OR SPECL<\L OBLIGATIONS OF
THE CITY NOR GENERAL OBLIGATIONS OF THE A UTH 0 RITY, BUT ARE LIMITED
OBLIGATIONS OF THE AUTHORlTI' PAYABLE EXCLUSNELY FROM REVENUES AS PROVIDED
IN THE INDENTURE, AS MORE FULLY DESCRIBED HEREIN. THE ACQUIRED OBLIGATIONS
ARE LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY FROM THE REASSESSMENTS
LEVIED WITHIN THE REASSESSMENT DISTRlCTS AND THE OTHER ASSETS PLEDGED
THEREFOR UNDER THE BOND INDENTURE PURSUA."NT TO WHICH SUCH ACQUIRED
OBLIGATIONS ARE ISSUED. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF
THE CITY OR THE STATE OF CALIFORNIA, OR ANY POLITICAL SUBDIVISION THEREOF, IS
PLEDGED TO THE PAYMENT OF THE ACQUIRED OBLIGATIONS.
Reserve Funds
The Authority has established a Senior Reserve Fund, a Subordinate Reserve Fund and, within the
Subordinate Reserve Fund, the 2001-1 Bond Reserve Account and the 2001-2 Bond Reserve Account,
pursuant to the Indenture. Upon issuance of the Series A Bonds, the Senior Reserve Fund will be initially
funded with a Senior Reserve Fund Surety issued by the Insurer in the amount of $ . 'The
Subordinate Reserve Fund will be initially funded from the proceeds of the Series B Bonds in the amount of
S- of which S- shall be deposited in the 2001-1 Bond Reserve Account and $- shall be
deposited in the 2001-2 Bond Reserve Account.
If on any Interest Payment Date the amount in the Senior Interest Account is less than the interest
payable with respect to the Series A Bonds on such date, the Trustee shall transfer the amount of such
delinquency from the Senior Reserve Fund to the Senior Interest Account, If on any Interest Payment Date the
amount in the Senior Principal Account is less than the principal payable with respect to the Series A Bonds on
such date, the Trustee shall transfer the amount of such delinquency from the Senior Reserve Fund to the
Senior Principal Account.
If on any Interest Payment Date the amount in the Subordinate Interest Account is less than the
interest payable with respect to the Series B Bonds on such date, the Trustee shall transfer the amount of such
delinquency from the applicable Subordinate Reserve Account of the Subordinate Reserve Fund to the
Subordinate Interest Account. If on any Interest Payment Date the amount in the Subordinate Principal
Account is less than the principal payable with respect to the Series B Bonds on such date. the Trustee shall
transfer the amount of such deEnquency from the applicable Subordinate Reserve Account of the Subordinate
Reserve Fund to the Subordinate Principal Account.
See "SECURITY FOR THE BONDS - Reserve Funds,"
Risk Factors
See the section of this Official Statement entitled "SPECIAL RISK FACTORS" for a discussion
of certain risk factors which should he considered, in addition to the other matters set forth herein, in
evaluating the invesnnent quality of the Bonds generally and see the section of this Official Statement
entitled "SPECL~ RISK FACTORS SPECIFIC TO SERIES B BONDS" for certain risk factors that
relate, in particular, to the investment quality of the Series B Bonds which are uot rated. The Series B
Bonds involve a high degree to risk and are not suitable for all investors.
Brief descriptions of the Bonds, the Acquired ObEgations, the security for the Bonds, the
Reassessment Disnicts, the Authority, the City and other infonnation are included in this Official Statement.
Such descriptions and infonnation do not purport to be comprehensive or definitive. The descriptions herein
of the Bonds, the Acquired ObEgations, the Indenture, the 2001-1 Bond Indenture, the 2001-2 Bond Indenture
and other documents are qualified in their entirety by reference to the forms thereof and the infonnation with
3
DOCSOC\806564v9'222"5 ,0 125
respect thereto included in the Bonds. the Acquired Obligations, the Indenture, the 2001-1 Bond Indenture. the
2001-2 Bond Indenture and other docwnents.
THE PLAN OF FINANCE
The Bonds are being issued in order to provide funds to purchase the Acquired Obligations which are
being issued to refund seven separate issues of limited obligation improvement bonds of the City as shown
below.
The following table illustrates for each series of Refunded Bonds the date of issuance, original par
amount, outstanding principal amount as of July 1,2001, redemption price and redemption date.
Outstanding Redemption Redemption
Refunded Bonds Issued Original Par July 1,2001 Price Rates Date
Refunded bv Reassessment District 2001-1
Secies 90-1 (Salt Creek 1) 811 ï/92 54,747,262.38 S 3,955,000 103% 3/2/02
Secies 90-3 (EastLake Greens - Phase 1) 8/17/91 22,352,427 18,475,000 103% 9/4/01
Secies 91-1 (Telegraph Canyon Road - Phase 11) 7/22/92 6.839,455.29 5.760,000 103% 3/2/01
Refunded bv Reassessment District 2001-2
Secies 88-1 (Otay Lakes Road, Phase 1) 6/17/91 7,349,608 5,985,000 103% 9/4/01
Se:ies 90-2A (Otay Valley Road) 9/02193 3,607,498 3,095,000 103% 9/4/01
Secies 90-2B (Otay Valley Road) 9/01/94 2.119.994 1,820,000 103% 9/4/01
Se:1es 92-2 (Autopark) 8/01/94 1,976,634 1,695,000 103% 9/4/01
Collectively, these bond issues are refeITed to as the "Refunded Bonds."
ConcuITently with the delivery of the Reassessment Bonds, the City will cause a portion of the
proceeds of the sale of the Acquired Obligations and certain other amounts on deposit in the funds and
accountS established for the Refunded Bonds to be rransfeITed to u.S. Bank Trust National Association. Such
amounts will be sufficient to pay the principal and interest on the Series 88-1 Refunded Bonds, the Series
90-2A Refunded Bonds, the Series 90-2B Refunded Bonds, the Series 90-3 Refunded Bonds and the Series
92-2 Refunded Bonds to and including September 2, 2001 and to pay the redemption price thereof on
September 4, 2001, as verified by Grant Thornton, an independent !inn of certified public accountants. See
"SOURCES Al"\!D USES."
Concurrently with the delivery of the Reassessment Bonds, the City will cause a portion of the
proceeds of the sale of the Reassessment Bonds and certain other amOtmtS on deposit in the funds and aCCOtUlts
established for the Series 90-1 Refunded Bonds and the Series 91-1 Refunded Bonds to be deposited into a
respective escrow fund for that series of the Refunded Bonds. Such amounts will be sufficient to pay the
principal of and interest on the Series 90-1 Refunded Bonds and the Series 91-1 Refunded Bonds to and
including March 2, 2002 and to pay the redemption price thereof on March 2, 2002, as verified by Grant
Thornton, an independent finn of certified public accountants. Amounts in the Escrow Fund will either be
invested solely in direct noncallable obligations of the United States of America or will remain uninvested.
See "SOURCES Al"<'D USES."
4
DOCSOC\806564v91222.5.0 125
SOURCES A2\"D USES'
Bonds
The estimated sources and uses of funds with respect to the Bonds are set foM in the following table:
Total
Sources of Funds
Principal Amount $29,330,000
Less Original Issue Discount 0
Transfer from Reassessment Bonds 1,632,160
Tota! Sources $30,962,160
Uses of Funds
Underwriter's Discount 290.294
Costs ofIssuance Fund'!) 603,269
Series B Bonds Debt Service Reserve Fund 738,000
Purchase Fund") 29,330,000
Total Uses $30,962,160
II> To pay costs of issuance, including legal fees, financial adVISor fees, prinring fees, rating agency fees, Trustee and fiscal
(01 Agent fees, Series A Bond Insurance Policy premium and the SenIor Reserve Fund Surety,
Amounts in the Purchase Fund will be used to purchase the Accuired Obligarions,
Acquired Obligations
The estimated sources and uses of funds with respect to the Acquired ObEgations are set foM in the
following table:
200!-! 2001-2
Refunding Refunding
Bonds Bonds Total
Sources of Funds
Principa! Amount of Acquired Obligations 519,855,000 $9,475.000 $29,330,000
Original Issue DiscountlPremium 0 0 0
Transfer from funds and accounts for Refunded Bonds 6,521,107 3,555.343 10,076,450
Total Sources' 26,376.107 13,030,343 39,406,450
Uses of Funds
Escrow Funds'l) 25,276,642 12,497,648 37,774,290
Transfer to Authority Trustee 1,099,465 532,695 1,632,160
Total Uses $26,376,107 $13,030,343 $39,406,450
[[) To be applied to refund the Refunded Bonds on either Sqtember 2, 2001 or March 2, 2002, See "THE PLAN OF
FrNANCE,"
. Preliminary, subject 10 change,
5
OOCSOC8o656-1v9\22245 0125
THE BONDS
Description of the Bonds
The Bonds will be issued in fully registered fonn and when delivered, will be registered in the name
of Cede & Co" as nominee of The Depository Trust Company ("DTC"), New York, New York. DTC will act
as securities depository for the Bonds. Ownership interests in the Bonds may be purchased in book-entry fonn
only in denominations of $5,000 or any integral multiple thereof. The Bonds wi1l be dated their date of
delivery. The Bonds will bear interest at the rates per annum and will mature, subject to the redemption
provisions set forth below, on the dates and in the principal amounts, all as set forth on the inside cover page
hereof.
Interest on the Bonds is payable semiannually on March 2 and September 2 of each year, commencing
March 2, 2002 (each an "Interest Payment Date") to the persons in whose names ownership of the Bonds is
registered on the Bond Register at the close of business on the immediately preceding Record Date, except as
provided in the Indenture. Interest on the Bonds will be calculated on the basis of a 360-day year comprised of
tWelve 30-day months. Interest on any Bond will be payable from the Interest Payment Date next preceding
the date of authentication of that Bond, unless (i) a Bond is authenticated on or before an Interest Payment
Date and after the close of business on the preceding Record Date. in which event it shall bear interest from
such Interest Payment Date, (ii) a Bond is authenticated on or before the fIrSt Record Date, in which event
interest thereon shall be payable from the Date of Delivery, or (iii) interest on any Bond is in default as of the
date of authentication thereof, in which event interest thereon shall be payable from the date to which interest
has been pajd in full, payable on each Interest Payment Date,
The principal of and redemption premium, if any, on the Bonds will be paid in lawful money of the
United States of America at the office of the Trustee upon presentation and surrender of the Bonds at maturity
or the prior redemption thereof. The Bonds will mature on September 2 in the principal amounts and years as
shown on the inside cover page hereof and are subject to optional redemption and mandatory sinking fund
redemption as shown herein.
The Bonds "ill be issued in book-entry fonn, initially registered in the name of Cede & Co., as
nominee of DTc. Payment of interest with respect to any Bond registered as of each Record Date in the name
of Cede & Co. will be made by wire transfer of same-day funds to the account of Cede & Co. See "Book-
Entry System."
Redemption
Extraordinary Redemption From Prepayments. The Bonds shall be subject to mandatory
redemption prior to maturity in whole on any date and in part on any Interest Payment Date, pro rata among
the Senior Bonds and the Subordinate Bonds and 'among maturities as directed by the Authority in a Written
Order accompanied by and consistent with the applicable Cash Flow Certificate (as defined herein, see "-
Cash Flow Certificate"), from funds resulting from prepayments by property owners of their Reassessments, at
a redemption price equal to the principal amount thereof; together with a redemption premium equal to the
lessor of (i) three percent (3%) of the principal amount of the Bonds to be redeemed or (ii) the redemption
premium which would apply in the event of an optional redemption of such Bonds, plus, accrued interest to the
date of redemption.
Optional Redemption. The Bonds maturing on or before September 2, 20- are not subject to
optional redemption prior to maturity. The Bonds maturing on or after September 2,20- shall be subject to
optional redemption in whole on any date or in part on any Interest Payment Date, occurring on or after
September 2, 20_, pro rata among the Senior Bonds and the Subordinate Bonds and among maturities as
directed by the Authority in a Written Order accompanied by and consistent with the applicable Cash Flow
Certificate from any source of available funds delivered to the Trustee, at a redemption price equal to the
6
DOCSOC\806564v9\211"50 115
principal amowlt to be redeemed. together with the following redemption premiums (computed on the
principal amount of the Bonds to be redeemed), plus accrued interest to the date of redemption:
Redemption Dates Redemption Premium
September 2, 20- through September 1,20- 2.0%
September 2, 2°- through September 1,2°- 1.0%
September 2, 20- and thereafter 0.0%
Mandatory Sinking Redemption of Series A Bonds. The Series A Bonds are subject to mandatory
sinking fund redemption prior to matUrity on September 2 of each year, commencing September 2, 20_, in the
principal amounts set forth in the immediately following table, at a redemption price equal to the principal
amount of Series A Bonds to be redeemed, plus interest thereon to the date of redemption, without premium.
MatUrity Date Principal
(September 2) Amount"
. p',;,minary. subject to change.
Cash Flow Certificate. A Cash Flow Certificate is deemed in the Indenture as a certificate prepared
by an Independent Assessment District Administrator which, as to an extraordinary redemption or optional
red"mption of Bonds pursuant to the Indenture (i) directs the redemption of Bonds among maturities of the
S"nior Bonds and the Subordinate Bonds as necessary, after giving effect to such redemption, so as to maintain
as close ás practicable the level of Revenue coverage that existed for the Senior Bonds and the Subordinate
Bonds as of the Date of Delivery, and (ii) certifies that after such redemption the Revenues scheduled to be
received from the Acquired Obligations will be sufficient in time and amount (together with funds then held
under the Indenture representing payments made pursuant to the Acquired Obligations and available to pay
debt service on the Bonds, but excluding amounts if any, on deposit in the Senior Bond Reserve Fund) to make
all remaining scheduled payments of principal of and interest on the Outstanding Bonds.
7
DOCSOC806564v9\22245.0 125
Mandatory Sinking Redemption of Series B Bonds. The Series B Bonds are subject to mandatory
sinking fund redemption prior to maturity on September 2 of each year, commencing September 2, 20_, in the
principal amounts set forth in the immediately fonowing table, at a redemption price equal to the principal
amount of Series B Bonds to be redeemed, plus interest thereon to the date of redemption, without premium.
Maturity Date Principal
(September 2) Amount'
. Preliminary. subject to change.
Purchase in Lieu of Redemption
In lieu ofredemption of any Bond amounts held by the Trustee for any such redemption may aiso be
used for the purchase of such Bonds at public or private sale as and when and at such prices (including
brokerage and other charges, but excluding accrued interest. which is payable from the Imerest Fund) as the
Authority may in its discretion detennine, but not in excess of the redemption price thereof plus accrued
interest to the purchase date. An Bonds so purchased shail be delivered to the Trustee for cancenation. See
Appendix B - "Sillvnvl"ill.Y OF BO1\11) DOCUMENTS."
Selection of Bonds for Redemption
In the evem a portion of the Bonds are to be redeemed, the Trustee win select the amounts and
maturities of Bonds forredemption in accordance with wTÌnen order of the Authority. Each such written order
of the Authority penaining to the optional or extraordinary redemption of Bonds shall be accompanied by a
Cash Flow Certificate pertaining to such redemption. See "THE BO1'<1)S - Redemption - Extraordinary
Redemption from Prepayments," "Optional Redemption" and Appendix B - "SUJv!M."ill.Y OF BO1'<1)
DOCUMENTS."
Notice of Redemption
At least thirty (30) days but no more than sixty (60) days prior to the redemption date, the Trustee
shall give by first class mail, postage prepaid, a copy of such notice, to the respective owners of the Bonds to
be redeemed at their addresses appearing on the Bond register. Failure to r,ceive such notice or any defect
therein shan not affect the validity of the redemption, or the cessation of interest on the redemption date. A
certificate by the Trustee that notice of such redemption has been given as provided in the Indenture shan be
conclusive as against an parties. In addition, notice of redemption shall be given to each of the Securities
Depositories and to at least one of the Infonnation Ser..ices. See Appendix B - "SUMMARY OF BOND
DOCUMENTS."
Effect of Redemption
If on such redemption date, money for the redemption of an the Bonds to be redeemed as provided in
the Indenture, together with interest to such redemption date, shan be available therefor on such redemption
8
DOCSOC'.806564v9112245 0125
date, and if notice of redemption thereof shall have been given, then from and after such redemption date,
interest with respect to the Bonds to be redeemed shall cease to accrue.
When any Bonds have been duly called for redemption under the provisions of the Indenture and
sufficient moneys shall be held irrevocably in trust for the payment of the redemption price of such Bonds or
portions thereof, all as provided in the Indenture, then such Bonds shall no longer be deemed outstanding and
shall be sUITendered to the Trustee for cancellation. See Appendix B - "SUMMARY OF BOND
DOCUMENTS."
Transfers and Exchange
So long as the Bonds remain in book-entry form, transfer and exchange of any of the Bonds will be
accomplished in accordance with the provisions of such book-entry system. In the event of tennination of such
book-entry system with respect to the Bonds, the Bonds may be transfetred and exchanged in accordance with
the terms of the Indenture, See Appendix B - "SUMMARY OF BOND DOCUMENTS" and Appendix F -
"INFORMATION CONCERNING DTc."
Debt Service Schedule
The following is the debt service schedule for the Series A Bonds and the Series B Bonds. assuming
no redemptions other than mandatory sinking fund redemptions.
9
DOCSOC 806564v9\21245.0125
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SECURITY FOR THE BO!l<ì)S
Repayment oftbe Bonds
General. The Bonds are payable solely from and secured by the pledged Revenues and any other
amounts held in any fund or account established pursuant to the Indenture, except the Rebate Fund, the
Expense Fund and the Residual Account of the Revenue Fund. Revenues consist of (i) all amounts derived
from or with respect to the Acquired Obligations. (ii) funds representing the proceeds of assessment
installments for the Original Assessment Districts (excluding any assessments for annual administration)
received by the City and whicb are not utilized to defease or refund the Refunded Bonds, and (iii) investment
income on the funds and accounts established under the Indenture excepting the Rebate Fund.
The Bonds are special obligations of the Authority. The Bonds shall not be deemed to constitute a
debt or liability of the City, the State, or any political subdivision thereof. other than the Authority. The
Authority shall only be obligated to pay the principal of the Bonds and the interest thereon'from the Revenues
and the other fUnds and assets pledged pursuant to the Indenture. Neither the faith and credit nor the taxing
power of the City, the State of California or any of its political subdivisions, including the Authority, is pledged
to pa}ment of the principal of or the interest on the Bonds.
Flow of Funds. While the aggregate principal amount of the Acquired Obligations is equal in amount
to the aggregate principal amount of the Bonds, the Acquired Obligations will bear interest at an annual rate
that is higher than the rate on the Bonds. Therefore. Revenue derived from paymentS of interest on the
Acquired Obligations will be greater than payments of interest on the Bonds (the "Excess Revenues"). Excess
Revenues will be used to provide coverage for the pa:ment of debt service on the Bonds and to provide a
source of payment of certain Administrative Costs of the Authority which exceed the proceeds of the annual
assessments for administrative costs which the City is authorized to collect on the tax roll. Excess Revenues
on hand in the Revenue Fund on July 2nd of each year. after provision for all payments due on the Bonds on
the following September 2 (the "Credit Revenues") "in be deposited in the Residual Account and transÎeITed
to Fiscal Agent for use in the next paymentS of the Acquired Obligations and such amounts will be credited as
a reduction to the Reassessment installment levied against all parcels in the Reassessment Districts in the
fol1owing Fiscal Year. Such Credit Revenues will be generated only to the extent that Reassessment
installments are col1ected in amounts sufñcient to pay the Acquired Obligations. Reassessment installment
delinquencies would reduce the funds available to repay the Acquired Obligations and may reduce the earnings
on funds held in the Senior and Subordinate Reserve Funds. See Appendix B - "SUMMARY OF BOND
DOCliMENTS."
Revenue Fund. Revenues which are Ex!raordinary Redemption Proceeds resulting from the
prepayment of the Reassessments will be deposited in the Redemption Account for early redemption of the
Bonds. The Trustee will deposit all other Revenues into the Revenue Fund as received and make further
deposits of such Revenues into the various accounts "ithin the Revenue Fund as provided in the Indenture in
the following order of priority: (I) the Senior Interest Account an amount which, together with amounts then
on deposit therein, is equal to the amount of interest corning due and payable on the Senior Bonds, (2) the
Senior Principal Account an amount which, together with amounts then on deposit therein, is equal to the
amount of principal corning due and payable on the Senior Bonds, (3) the Senior Reserve Fund an amount
which, together with other funds therein, including the amount of the Senior Reserve Surety, if any, is equal to
the Senior Reserve Requirement, (4) the Subordinate Interest Account an amount which, together with
amounts then on deposit therein, is equal to the amount of interest coming due and payable on the Subordinate
Bonds, (5) the Subordinate Principal Account an amount which, together with amounts then on deposit therein,
is equal to the amount of principal corning due and payable on the Subordinate Bonds, (6) [Subordinate
Reserve Fund], (7) the Expense Fund such amount as may be requested in a Written Request of an Authorized
Representative of the Authority for the payment of Administrative Costs, (8) the Rebate Fund all amounts
which the Authority directs to be deposited therein pursuant to the arbitrage rebate provisions of the Indenture,
11
DOCSOC80656-'v9\222J5.0 125
(9) the Residual Account of the Revenue Fund the amount then on deposit in the Revenue Fund. See
Appendix B - "SUMMlillY OF BOND DOCUMENTS."
Residual Account. Moneys deposited into the Residual Account are in excess of that required for
deposit into the funds and accounts described above (the "Credit Revenues") and shall be released from the
lien and pledge established by the Indenture. Monies on deposit in the Residual Account shall be transfeITed
by the Trustee to the Fiscal Agent to be deposited in the Redemption Fund established under the Bond
Indentures as provided in the Indenture and shall be credited as a reduction of the Reassessment levied in the
following Fiscal Year. See Appendix B - "SUMMARY OF BOND DOCUMENTS."
Senior Reserve Fund. The Authority is required to deposit $ in the Senior Reserve Fund
or, alternatively, to provide a Senior Reserve Fund Surety, which when taken with the funds deposited in the
Senior Reserve Fund, will equal the Senior Reserve Requirement. The Senior Reserve Requirement means as
of any date of calculation, the lesser of (i) Maximwn Annual Debt Service for the Series A Bonds, (ii) 125% of
the Average Annual Debt Service on the Series A Bonds, or (iii) 10% of the original principal amount of the
Series A Bonds. Amounts in the Senior Reserve Fund will be used to pay debt service on the Series A Bonds
to the extent other moneys are not available therefor. Earnings on amounts in the Senior Reserve Fund will be
deposited into the Revenue Fund to the extent such earnings are not required to be retained in the Senior
Reserve Fund to meet the Senior Reserve Requirement. See Appendix B - "SUMMARY OF BOND
DOCUMENTS."
Subordinate Reserve Funds. The Authority is required to deposit $- in the 2001-1
Subordinate Reserve Account and $ - in the 2001-2 Subordinate Reserve Account. Thereafter, earnings
and additional deposits from Revenues into each such account will accumulate in each respective account to an
amount equal to the applicable Subordinate Reserve Requirement.
The Authority is required to maintain in separate Reserve Accounts an amount of money equal to the
2001-1 Subordinate Reserve Requirement and to maintain in the 2001-2 Subordinate Reserve Account an
amount of money equal to the 2001-2 Subordinate Reserve Requirement. The "2001-1 Subordinate Reserve
Requirement" means that amount equal to the Subordinate Reserve Requirement multiplied by a fraction, the
numerator of which is the principal amount of the then outstanding 2001-1 Refunding Bonds and the
denominator of which is the sum of the principal amount of the then outstanding 200 I-I Refunding Bonds and
the principal amount of the then outstanding 2001-2 Refunding Bonds. The "2001-2 Subordinate Reserve
Requirement" means that amount equal to the Subordinate Reserve Requirement multiplied by a fraction the
numerator of which is the principal amount of the then outstanding 2001-2 Refunding Bonds and the
denominator of which is the sum of the principal amount of the then outstanding 200 I-I Refunding Bonds and
the principal amount of the then outstanding 2001-2 Refunding Bonds. The "Subordinate Reserve
Requirement" means that amount that shall, as of any date of calculation, be equal to the lesser of
(i) Maximum Annual Debt Service for the Series B Bonds, (ii) 125% of Average Annual Debt Service for the
Series B Bonds, or (iji) 10% of the original principal amount of the Series B Bonds.
If on any Interest Payment Date the amount in the Subordinate Interest Account shall be less than the
interest payable with respect to the Subordinate Bonds on such date as a result of a deficiency in the payment
of scheduled debt service on the 2001-1 Refunding Bonds or the 2001-2 Refunding Bonds, the Trustee shall
withdraw from the 2001-1 Subordinate Reserve Account or the 2001-2 Subordinate Reserve Account, as
applicable, and deposit into the Subordinate Interest Account the amount necessary to make good such
deficiency.
If on any Imerest Payment Date the amount in the Subordinate Principal Account shall be less than the
principal payable with respect to the Subordinate Bonds on such date as a result of a deficiency in the payment
of scheduled debt service on the 2001-1 Refunding Bonds or the 2001-2 Refunding Bonds, the Trustee shall
withdraw from the 2001-1 Subordinate Reserve Account or the 2001-2 Subordinate Reserve Account, as
12
DOCSOC'.806564v9\222"5.0125
applicable, and deposit into the Subordinate Principal Account the amount necessary to make good the
deficiency.
The Trustee shall be required to transfer amounts from the applicable reserve account which represent
2001-1 Subordinate Reserve Account Prepayment Credits or 2001-2 Subordinate Reserve Account
Prepayment Credits which result from the prepayment of all or a portion of the 2001 -1 Refunding Bonds or
the 2001-2 Refunding Bonds, as applicable. In addition, the Trustee shall be required to transfer amounts from
the applicable reserve account which represent 2001-1 Subordinate Reserve Account Prepayment Credit or
2001-2 Subordinate Reserve Account Prepayment Credit which may result upon the discharge of the
assessment lien applicable to an Original Assessment within the applicable Reassessment District. See
Appendix B - "SUMMARY OF BOND DOCUMENTS." The Trustee shall transfer amounts on deposit in
either of the Subordinate Reserve Accounts in excess of the applicable Subordinate Reserve Requirement to
the Fiscal Agent for the applicable Refunding Bonds.
Residual Assessment Installments. Pursuant to the Assessment Bond Indenture and the Bond
Purchase Agreement, the City has covenanted to complete the collection of certain assessment installments of
the Original Assessment Districts that were levied for the 1999/00 and 2000/01 tax years but have not yet been
collected by the County Tax Assessor and remitted to the Cjty (the "Original Assessment Districts' Residual
Assessment Installments"). Such Original Assessment Districts' Residual Assessment Installments shall be
paid by the City to the Trustee as assignee of the Authority as defeITed purchase price for the Acquired
Obligations. Upon receipt by the Trustee, such amounts will constitUte Revenues which the City and
Authority expect to be in amounts sufficient to bring the Senior and Subordinate Reserve Funds up to their
respective Reserve Requirements on September 2,2001 when the Trustee makes the various deposits required
on that date from the Revenue Fund to the funds and accounts as designated by the Indenture. See "- Revenue
Fund" above.
Repayment of the Acquired Obligations
General. The Acquired Obligations are payable solely from and secured by unpaid Reassessments on
parcels located within the Reassessment Districts. See "PLAN OF REFUNDING" and "mE
REASSESSMENT DISTRJCT." Installments of Reassessments will be billed by the County on the general
property tax bill to the owners of parcels within the Reassessment Districts. The County, upon collection, will
remit the portion of the tax payment attributable to the Reassessment installments to the City. Upon receipt by
the City, Reassessment installments are to be transfeITed to the Fiscal Agent and deposited into the
Redemption Fund to pay principal and interest payments on the Acquired Obligations as they become due.
Pursuant to the provisions of California Streets and Highways Code Secrion 8769, the City has
determined not to obligate itself to advance funds from any funds, accounts or revenues of the City to cure any
deficiency which may Occur in the fUnds and accounts held under the 2001-1 Bond Indenture and the 2001-2
Bond Indenture for payment of the Acquired Obligations. If a delinquency occurs in the payment of any
Reassessment installment, the City, at the end of the fiscal year of delinquency, has no duty to transfer to the
Fiscal Agent under the 2001-1 Bond Indenture or the 2001-2 Bond Indenture the amount of the delinquency
out of available funds of the City. NO OmER FUNDS OF mE CITY ARE PLEDGED FOR PAYMENT OF
DELINQUENT REASSESSMENT INSTALLMENTs. THE ACQUIRED OBLIGATIONS ARE NOT GENERAL
OBLIGATIONS OF mE CITY. THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL
SUBDIVISIONs. NEITHER mE FAlm IN CREDIT, NOR mE TAXING POWER OF mE CITY (EXCEPT
AS DESCRJBED HEREIN). THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION mEREOF
IS PLEDGED TO mE PAYMENT OF mE ACQUIRED OBLIGATIONs.
Redemption Fund. The Fiscal Agent is directed under the Bond Indentures to establish and maintain
a Redemption Fund into which will be placed all sums received for the collection of the Reassessments and the
Credit Revenues transfeITed to the Fiscal Agent from the Trustee. See "Flow of Funds " above and Appendix
B - "SUMMARY OF BOND DOCUMENTS."
13
DOCSOCEO6564v9\22245.0 125
The City shall transfer or cause to be transfe:Ted all sums received for the collection of the
Reassessments and of interest and cenain penalties thereon, all sums received in payment of the original
assessments of the Original Assessment Districts not refunded by the Reassessments, and all sums received for
the prepayment of Reassessments to the Fiscal Agent within thirty (30) business days of the receipt thereof by
the City.
Principal of and interest on the Acquired Obligations shall be paid by the Fiscal Agent to the Trustee
as the registered owner of the Acquired Obligations, on behalf of the Authority, out of the Redemption Fund to
the extent funds on deposit in said Redemption Fund are a\'ailable therefor.
Prepayment Account. The Fiscal Agent is àirected under the Bond Indentures to establish a
prepayment subaccount within the Redemption Fund to be known as the Prepayment Account. The Fiscal
Agent shall deposit in the Prepayment Account all moneys received from the Treasurer of the City
representing the principal of and redemption premium on any prepaid Reassessments. Such moneys shall be
applied solely to the payment of principal of and premium on Acquired Obligations to be redeemed prior to
maturity pursuant to the provisions of the Bond Indentures.
Levy and Collection of Reassessments
Pursuant to the Refunding Act, installments of Reassessments will be billed by the County on the
general property tax bill to the owner of parcels withi,"! the Reassessment Districts against which there are
unpaid Reassessments. InstallmentS of Reassessme:m billed against the parcels of property in the
Reassessment DistrictS wi11 be equal to the total prinÓ,¡Ù and interest coming due on a11 of the Acquired
Obligations that year, plus an administrative charge but less any Residual Account Annual Credit. The
installments bi11ed against each property each year represe:¡t a pro rata share of the amount needed to pay the
total principal and interest on the Acquired Obligations coming due that year, based on the percentage which
the unpaid reassessment levied against that property bea." to the total of unpaid reassessments levied to repay
the Acquired Obligations. Reassessments wi11 be collected and are payable and become delinquent at the same
time and in the same proportionate amounts and be3I the same proportionate penalties and interest after
delinquency as do general taxes, and the parcels upon which the Reassessments are levied are subject to the
same provisions for sale and redemption as are properties for nonpayment of general taxes.
Each Reassessment and each installment thereof and any interest and penalties thereon constitute a
lien against the parcel ofland on which it is levied until paid. Only the Reassessments and installments thereof
are pledged to secure the Acquired Obligations.
The lien of the Reassessments is co-equal to and independent of the lien for general ad valorem
property taxes and other taxes, special taxes and charges collected on the property tax roll. The lien is
subordinate to all fixed special assessment liens imposed prior to the date of recordation of the assessment lien
for the Prior Bonds upon the same property, but has priority over all existing and future private liens and over
all fIXed special assessment liens which may thereafter be levied against the property.
Although the Reassessments constitute a fL'ted lien on the respective assessed parcels, they do not
constitute personal indebtedness of the affected property owners. Further, there are no restrictions on the
ability of property owners to sell parcels subject to Re,assessments. No assurance can be given as to the ability
or the willingness of any assessee to pay the annual installments of the Reassessments when due. The failure
of an assessee to pay an annual installment of a Reassessment wi11 not result in an increase in Reassessments
against other parcels in the Reassessment Districts. See "RISK FACTORS - "herein.
There can be no assurance that Credit Revenues returned to the Fiscal Agent on July 2 fo11owing the
end of each Fiscal Year wi11 be sufficient to fu11y offset delinquent installments of Reassessments accruing in
such year,
1.1
DOCSOC',806564v9\222.50 125
The City has covenanted in certain circumstances to undenake and diligently prosecute foreclosure
proceedings following a delinquency in the payment of Reassessments. See "Covenant to Foreclose" below.
The City is not required to bid at the foreclosure sale.
In the proceedings for the authorization and issuance of the Acquired Obligations, the City has
detennined not to obligate itself to advance any avaílable funds from the City treasury to cover any deficiency
or delinquency that may occur in the Redemption Fund by reason of the failure of a property owner to pay an
annual installment of a Reassessment. This determination does not prevent the City, in its sole discretion, from
so advancing such funds.
Method of Reassessment Spread
The Refunding Act provides for the issuance of refunding bonds, payable from certain reassessments.
Such refunding bonds may be issued to refund bonds originally issued under the 1915 Act, and the
reassessments supersede the original assessments which secure such 1915 Act bonds. The Refunding Act
generally requires each estimated annual installment of principal and interest on any reassessment to be less
than the original assessment being superseded by the same percentage for all subdivisions of land within the
Reassessment District. Therefore, the reassessment spread for each parcel will be roughly proportional to the
original assessment spread. The City has retained MuniFinancial, Temecula, California, as the Reassessment
Engineer to calculate the Reassessments in accordance with the Refunding Act.
A copy of the Engineer's Report on the Reassessment apportionment for the Reassessment Districts
prepared by the Reassessment Engineer is available for inspection at the City of San Diego Public Works
Department.
Covenant to Foreclose
The Acquired Obligations issued under the Refunding Act are subject to the provisions of the 1913
Act with respect to foreclosure remedies. The 1915 Act provides that in the event any installment of an
assessment is not paid when due. the City may order the collection of the installment by the institution of a
court action to foreclose the lien of such assessment. In such an action, the real property subject to the unpaid
assessment may be sold at a judicial foreclosure sale. In the Bond Indenrures, the City has covenanted that it
will determine or cause to be determined, no later than OctOber 1 of each Fiscal Year in which the Bonds are
outstanding, whether or not any owners of the real property within the Reassessment Districts are delinquent in
the payment of reassessment installments. The City will order and cause judicial foreclosure actions to be
corrunenced in the Superior Court no later than 60 days following such determination against: (a) any parce!
for which there are delinquent reassessment installments of $2,000 or more for the prior Fiscal Year or Fiscal
Years, (b) each parcel for which there are delinquent reassessment installments of $1 ,000 or more for the prior
Fiscal Year or Fiscal Years if the Finance Director determines that the amount of delinquent reassessment
installments for the prior Fiscal Year for the entire Reassessment District, less the total delinquencies under (a)
above, exceeds three percent (3%) of the total reassessment installments due and payable in the prior Fiscal
Year, and (c) each parcel for which there are delinquent reassessment installments for the prior Fiscal Year or
Fiscal Years if the Finance Director detennines that the amount of delinquent reassessment installments for the
prior Fiscal Year for the entire Reassessment District, less the total delinquencies under (a) and (b) above.
exceeds three percent (3%) of the total reassessment installments due and payable in the prior Fiscal Year.
The City has also covenanted to diligently prosecute any such foreclosure action to judgment and
foreclosure sale.
Judicial Foreclosure Sale Proceedings
The 1913 Act provides that the court in a foreclosure proceeding has the power to order a parcel
securing delinquent Reassessments to be sold for an amount not less than all delinquent annual installments of
15
DOCSOC\80656-!v91212'5.0 ¡ 25
the Reassessments, interest, penalties, costs, fees and other charges that are delinquent at the time the
foreclosure action is ordered and certain other fees and amounts as provided in the 1915 Act (the "Minimum
Price"). The court may also include subsequent delinquent Reassessments and all other delinquent amounts.
If the parcel is sold to a purchaser other than the City, the City shall pay the proceeds from the sale of
the parcel after payment of any expenses related to the foreclosure into the Redemption Fund. The City has no
obligation to advance any moneys (other than the foreclosure sale proceeds) to the Redemption Fund.
However, if the City for any reason voluntarily chooses to advance funds, then the City shall be reimbursed,
from the proceeds of a sale, first for amounts advanced by it to the Redemption Fund to cover delinquent
installments of the Reassessments and interest with respect to the parcel or parcels sold in such proceedings.
.A.ny funds in excess of the amount necessary to reimburse the City may be applied by the City to reimburse
other funds, if any, used to cover delinquent installments of the Reassessments and interest or to pay interest
and penalties, costs, fees and other charges, to the extent they were included in the sale proceeds.
If the parcel or parcels to be sold fails to sell for the Minimum Price, the City may petition the court to
modify the judgment so that the parcel or parcels may be sold at a lesser price or without a Minimum Price. In
certain circumstances, as provided in the 1915 Act, the court may modify the judgment after a hearing if the
ODurt makes certain determinations, including detenninatjons that the sale at less than the Minimum Price will
:Jot result in an ultimate loss to the owners of the Acquired Obligations or that the owners of at least seventy-
:ïve percent (75%) of the principal amount of the Acquired Obligations outstanding have consented to the
petition and the sale will not result in an ultimate loss to nonconsenting bondholders. The court may also make
such modification of the judgment upon consent of the owners of at least seventy-five percent (75%) of the
principal amount of the Acquired Obligations without determining that the sale will not result in an ultimate
loss to the nonconsenting bondholders if: the City is not obligated to advance available funds to cure a
deficiency; no bids equal to or greater than the Minimum Price have been received at the foreclosure sale; no
funds remain in the special reserve fund; the Cjty has reasonably detennined that a reassessment and refunding
proceeding is not practicable or has in good faith endeavored to accomplish a reassessment and refunding and
has not been successful, or has completed reassessment and refunding ammgements which will, to the
maximum extent feasible, minimize the ultimate loss to the bondholders: and no other remedy acceptable to
the owners or holders of seventy-five percent (75%) or more of the principal amount of the outstanding
Acquired Obligations, js reasonably available. As assignee of the Authority, the Trustee for the Bonds will
hold one hundred percent (100%) of the Acquired Obligations. Neither the parcel owner nor any holder of a
security interest in the parcel nor any defendant in the foreclosure action nor any agent thereof may purchase
the parcel at the foreclosure sale for less than the Minimum Price. The assessment lien upon property sold at a
lesser price than the Minimum Price is to be reduced by the difference betWeen the Minimum Price and the
sale price.
No assurance can be given that in the event of a foreclosure proceeding a parcel could be sold for the
full amount of the delinquency or that any bid would be received for such parcel. See "RISK FACTORS -
Land Values" herein. The ability of the City to foreclose the lien of a delinquent installment of a
Reassessment may be limited by bankruptcy, insolvency or other laws generally affecting creditors' rights or
by California law relating to judicial foreclosure. See "RISK FACTORS -- Bankruptcy and Limitations on
Enforcement of Remedies."
Sales of Tax-Defaulted Property Generally
A parcel securing delinquent installments of a Reassessment that is not sold pursuant to the judicial
foreclosure proceeding as described above may be sold, subject to redemption by the parcel owner, in the same
manner and to the same extent as real property sold for nonpayment of general County property taxes. On or
before June 30 of the year in which such delinquency occurs, the parcel becomes tax-defaulted. This initiates
a five-year period during which the parcel owner may redeem the parcel. At the end of the five-year period the
parcel becomes subject to sale by the COlU1ty Treasurer and Tax Collector. Except in certain circumstances, as
provided in the 1915 Act, the purchaser at any such sale takes such parcel subject to all delinquent installments
16
DOCSOC806564v9\222"5.0125
of the Reassessment, interest and penalties, costs, fees and other charges which are not satisfied by application
of the sales proceeds and subject to all prior assessments which may have priority.
Bond Insnrance
The payment of principal of and interest on the Series A Bonds when due will be insured by a
financial guaranty insurance policy to be issued by simultaneously with the delivery of the
Series A Bonds. . See the infonnation under the caption "BOND INSURA,/lfCE FOR SERIES A BONDS" and
"APPENDIX G -- Specimen of Financial Guaranty Insurance Policy" herein. The Subordinate Bonds are
not insured and have no claim on the municipal bond insurance policy.
Priority of Lien
The unpaid Reassessments levied within the Reassessment Districts and each installment thereof and
any interest and penalties thereon constimte a lien against each of the respective parcels within the
Reassessment Districts until the same are paid. Generally, a special assessment lien is subordinate to all
special assessment liens previously imposed upon the same property, but has priority over all private liens and
over all special assessment liens which may thereafter be created against the same property. However, such
lien is on a parity "ith the lien of general property ta;'(es, assessments and any special taxes imposed, whether
prior to or after the imposition of such special assessment lien. against the same property pursuant to the
Mello-Roos Community Facilities Act of 1982, as amended, or other applicable legislation. There are liens for
special taxes, assessments and the recurring lien for gene",l property taxes on parcels within the Reassessment
District. See "THE REASSESSMENT DISTRlCT - Direct and Overlapping Debt"
Existing Liens
See "THE REASSESSMENT DISTRlCT - Direct and Overlapping Debt" for overlapping
indebtedness secured by ad valorem taxes and special taxes.
No Obligation ofthe City Upon Delinquency
The City is under no obligation to transfer any funds of the City into the Reassessment Fund or the
Redemption Fund for the payment of the principal of or interest on the Acquired Obligations if a delinquency
occurs in the payment of any Reassessments. See "SEC1JlUTY FOR THE BONDS - Covenant for Superior
Court Foreclosure" for a discussion of the City's obligation to foreclose Reassessment liens upon
delinquencies. Pursuant to Section 8769 of the California Streets and Highways Code, the City has expressly
elected not to obligate itself to advance available funds from the City's treaswy to make up deficiencies in the
amount of Reassessment installments collected.
Prepayment of Reassessments
A property owner may prepay its Reassessments and thereby cause a redemption of Acquired
Obligations and the Bonds. See "THE BONDS - Redemption - Mandatory Redemption of Bonds;"
"SPECIAL RISK FACTORS - Potential Early Redemption from Prepayments."
BOND INSURANCE FOR SERIES A BONDS
The following information has been fUrnished by the Series A Bond Insurer for use in this Official
Statement. Such information has not been independently confirmed or verified by the City or the Authority.
No representation is made herein by the City or Authority as to the accuracy or adequacy of such information
subsequent to the date hereof, or that the information contained and incorporated herein by reference is
correct. Reference is made to Append¿t E for a specimen of the Series A Bond Insurer's Financial Guaranty
Insurance Policy.
17
DOCSOC'$06564v91222.5.0 125
[To Come]
]8
DOCSOC8065ò4v9\2224S.0125
THE REASSESSMENT DISTRICTS
General
The boundaries of the Reassessment Disnicts are coterminous with the boundaries of the Original
Assessment Disnicts and comprise approximately 1,893 acres of unique reassessed property located in the
eastern portion of the City in the County of San Diego. The Reassessment Disnicts lie directly east of the
Interstate 805. According to the County Assessor's 2000-2001 secured property tax roll, as of January 1, 2000,
and as partially updated by MuniFinancial, approximately 1,298 acres of reassessed property remain
undeveloped in the Reassessment Disnicts. Certain portions of the Reassessment Disnicts are roadways, flood
control facilities, and water and wastewater collection and disnibution facilities owned by governmental
entities or otherwise not subject to Reassessments. According to the County's 2000-2001 secured property tax
roll, as of January 1, 2000, and as partially updated by MuniFinancial the property, on which the
Reassessments have been levied constituted 3,515 separate parcels. The Reassessment Districts are areas of
special assessment referring to the 'property that is specially benefited from the improvements financed by the
Original Assessment Disnicts. The land within Reassessment Disnict 2001-1 is primarily residential in nature,
while the land in Reassessment Disnict 2001-2 is primarily commerciallindusnial in nature. See "-
Reassessment Disnict 2001-1" and "-Reassessment Disnict 2001-2" below.
The Reassessments were levied within the Reassessment Disnicts by the City Council of the City (the
"City Council") under proceedings taken pursuant to Resoiution No. -' adopted by the City COlmcil
on July 10,2001.
Reassessment District 2001-1
The boundaries of Reassessment Disnict 2001-1 are coterminous with the boundaries of Assessment
Disnict No. 90-1, Assessment Disnict No. 90-3 and Assessment Disnict No. 91-1. Reassessment Disnict
2001-1 is primarily residential in nature, but also contains several commercial, indusnial and recreational
properties. See "-Land Uses and Development Status and Estimated Assessed Value-to-Lien Ratios" below.
Reassessment Disnict 2001-1 is located within the master planned community of EastLake ("EastLake"), for
which the EastLake Co., LLC ("EastLake Company") has been and continues to be the master developer. See
"-EastLake Company" below.
The following is a brief description of each of the Original Assessment Disnicts located in
Reassessment Disnict 2001-1:
Assessment Disnict No. 90-1. Assessment Disnict No. 90-1 is siruated in the eastern part of the City,
east of Interstate 805 and the SR 125 State Highway. The Assessment Disnict is iITegular in shape, and is
generally bounded to the east by Salt Creek Ranch and to the south by EastLake, and is located on properties
fonnedy constituting part of the EastLake I development Total area within Assessment District No. 90-1 at
the time of fonnation was approximately 124 acreS all of which is located within the limits of the City.
Assessment Disnict No. 90-1 is completely residential in nature and is fully developed. Assessment Disnict
No. 90-1 contains 164 single family residences and 357 condominiums. The public improvements financed
through Assessment District No. 90-1 included the acquisition of street (including utilities) and stonn drain
improvements, reclaimed water facilities, sewer service facilities, and a portion of the capacity of major sewer
mains to adjacent areas attributable to the Assessment District No. 90-1 project, and related improvements,
together with appurtenances and appurtenant work, and incidental costs and expenses related thereto. All of
the public improvements fmanced through Assessment Disnict 90-1 have been completed.
Assessment Disnict No. 90-3. Situated in the eastern part of the City east of Interstate 805 and west of
OlaY Lake, Assessment District No. 90-3 is iITegular in shape, and generally bounded to the north by EastLake
HiJIs, EastLake Shores and EastLake Business Park - Phase I and to the south by Orange Avenue, and is
located on properties cornmonly referred to as the EastLake Greens, Trails. Woods, Vistas, Olympic Training
19
DOCSOC80656->v9\22245.0125
Center and Business Center (Phase II). Total area within Assessmem District No. 90-3 at the time of
formation was approximately 3,123 acres, all within the limits of the City.
Assessment District No. 90-3 is mostly residential, but contains several commercial and recreational
parcels, including the wann weather Olympic Training Center. According to the County Assessor's
2000-2001 secured property tax roll, as of January 1, 2000, and as panially updated by MuniFinancial,
developed property within Assessment District 90-3 consisted of 2,781 residential parcels, 2 recreational
parcels, 4 commercial parcels and I industrial parcel. Developed parcels secure liens representing
approximately 78% of the Reassessments levied within Assessment District No. 90-3. According to the
County Assessor's 2000-2001 secured property tax roll, as of January I, 2000, and as panially updated by
MuniFinancial, 100 residential parcels totaling approximately 206 acres, 3 industrial parcels totaling
approximately 85 acres, a small commercial property totaling approximately .57 acres and 5 rural parcels
totaling approximately 686 acres remain undeveloped within Assessment District No. 90-3. Undeveloped
parcels secure liens representing approximately 22% of the Reassessments levied within Assessment District
No. 90-3.
Four of the undeveloped rural parcels were acquired by the EastLake Company from the Western Salt
Company as part of an approximately 1,000 acre purchase in May 2000. Pursuant to the County Assessor's
office, EastLake Company paid approximately S46.oo0,000 for the entire 1,000 acres. According to
information obtained from the County Assessor's office. the 2000-2001 assessed value for the four parcels
located within Assessment District No. 90-3 acquired by EastLake Company from the Western Salt Company
is $30,136,640. These four parcels total approximateiy 642 acres and will be developed by the EastLake
Company as part of EastLake Phase III which "in be an extension of the EastLake Master Planned
Community. One of the parcels, totaling approximately 67 acres, has a recorded tentative tract map and has
final maps recorded on portions of that parcel. Grading on this parcd is underway. The EastLake Company is
cutTently working on an amendment to the General Plan and Specific Planning Areas in connection with the
development of EastLake Phase III and the remaining three parcels. See "-EastLake Company" below.
The public improvements financed through Assessment District No. 90-3 included the acquisition of
water systems for the EastLake Greens Phase I area a.'ld adjacent areas and for the Olympic Training Cemer.
reclaimed water facilities for EastLake Greens Phase I and major service lines to other areas in the EastLake
development, full sewer service facilities to EastLake Greens Phase I and major sewer mains to adjacent areas
and the Olympic Training Center, street and storm drai.'l improvements for EastLake Greens Phases I and II
and adjacent areas, and related improvements, togemer with appUI1enances and appurtenant work, and
incidental costs and expenses related thereto. All of the public improvements fmanced through Assessment
District No. 90-3 have been completed.
Assessment District No. 91-1. Situated in the eastern part of the City east of Interstate 805 and west
of Otay Lake, Assessment District No. 91-1 is irregular in shape, and generally bounded to the north by
Clubhouse Drive and to the south by Orange Avenue. and is located on properTies commonly refetTed to as the
southern one-half of EastLake Greens and the Olympic Training Center. Total area within Assessment District
No. 91-1 at the time offorrnation was approximately 560 acres, all within the limits of the City. POrTions of
Assessment District No. 91-1 are also located within Assessment District No. 90-3.
Besides the Olympic Training Center, Assessment District No. 91-1 is entirely residential in nature.
Assessment District No.91-1 contains 1,124 developed residemial parcels and I undeveloped residential
parcel totaling approximately 19 acres. According to the County Assessor's 2000-2001 secured tax roll, as of
January 1, 2000, and as panially updated by MuniFinancial, the developed parcels secure liens representing
approximately 88% of the Reassessments, while the undeveloped parcel secures a lien representing
approximately 12% of the Reassessments levied within Assessment District No. 90-3.
The public improvements financed through Assessment District No. 91-1 included the acquisition of
public works for Telegraph Canyon Road - Phase n. including road, storm drain, water, sewer, electrical and
20
DOCSOC806564v9\222~5.0 125
related improvements, together with appurtenances and appurtenant work, and incidental costs and expenses
related thereto. All of the pub1ic improvements fmanced through Assessment District No. 91-1 have been
completed.
Reassessment District 2001-2
The boundaries of Reassessment District 2001-2 are coterminous with the boundaries of Assessment
District No. 88-1, Assessment District No. 90-2 and Assessment District No. 92-2. Reassessment District
2001-2 is primarily commercial/industrial in nature, but also contains some residential, recreational, church,
school, utility and rura1 properties. See "-Land Uses and Development Status and Estimated Assessed
Value-to-Lien Ratios" below.
The following is a brief description of each of the Original Assessment Djstricts located in
Reassessment District 2001-2.
Assessment District No. 88-1. Situated in the eastern part of the City east of Interstate 805, the
Assessment District No. 88-1 is irregular in shape and hilly in terrain, and generally bounded to the south by
Otay Lakes Road and is located on properties commonly referred to as the EastLake Business Center and
EastLake Village Center. Assessment District No. 88-1 consists of 27 parcels. The total area within
Assessment District No. 88-1 at the time of fonnation was approximately 140 acres, all within the limits of the
City.
The EastLake Business Center Phase I is substantially developed. Current occupants of Phase I
include United Parcel Service, U.S. Postal Service and North Island Federal Credii Union. Development in the
EastLake Village Center is ongoing. According to the County Assessor's 2000-2001 secured tax roll, as of
January I, 2000, and as partially updated by MuniFinancial, 13 industrial parcels totaling approximately
65 acres remain undeveloped. Developed parcels secure liens representing approximately 38% of the
Reassessments and undeveloped parcels secure liens representing approximately 62% of the Reassessments
levied within the boundaries of Assessment District No. 88-1.
The public improvements fmanced through Assessment District No. 88-1 included the acquisition of
street, water, drainage, and uti1ity improvements, together with appurtenances and appUrtenant work, and
incidental costs and expenses related thereto. All public improvements financed through Assessment District
No. 88-1 have been completed.
Assessment District No. 90-2. Assessment District No. 90-2 is located in the southeast corner of the
City and bordered by the Otay River Valley to the south, Interstate 805 to the west and the Otay County
Landfill to the north. Portions of Assessment District No. 90-2 are located within the Otay Valley Road
Development Project Area. Otay Valley Road Project Area was fonned in December 1983 in order to
eliminate conditions of blight which were impacting industrial development in the area, including the presence
of hazardous substances on several parcels of property fonnerly owned by the Darling Delaware Company.
See "SPECIAL RISK F ACTORS--Hazardous Substances." Zoning within the District allows uses for light
industrial faci1ities and open space areas.
Assessment District No. 90-2 consists of 68 parcels. The total area within Assessment District No.
90-2 was at the time of fonnation approximately 800 gross acres. According to the County Assessor's
2000-2001 secured tax roll, as of January 1,2000, and as partially updated by MuniFinancial, developed
property within Assessment District No. 90-2 consisted of 1 agricultural parcel, 2 commercial parcels,
42 industrial parcels, a school, and 2 recreational parcels. Developed property totals approximately 224 acres
and secures liens representing approximately 65% of Reassessments levied within the boundaries of
Assessment District No. 90-2. According to the County Assessor's 2000-2001 secured tax roll, as of
January 1,2000, and as partially updated by MuniFinancial, undeveloped property within Assessment District
No. 90-2 consisted of I commercial parcel totaling approximately 25 acres, 16 industrial parcels totaling
21
DOCSOC\806564v9\22245.0 125
approximately ï7 acres, 1 utihty parcel totaling approximately 5 acres and 2 rural parcels totaling
approximately 146 acres. Undeveloped property secures liens representing approximately 35% of the
Reassessments levied within the boundaries of Assessment District No. 90-2.
The public improvements financed through Assessment District No. 90-2 included the acquisition of
street and other related improvements in connection with the widening of Otay Va11ey Road, and incidental
costs and expenses related thereto. All public improvements financed through Assessment District No. 90-2
have been completed.
Assessment District No. 92-2. Assessment District No. 92-2 is located in the southeastern quarter of
the City, approximately one quarter of a mile east of Interstate 805 which provides primary north-south access
to Otay Valley Road. Assessment District No. 92-2 is bordered on the north by Otay Valley Road from which
there is access to the parcels by Brandywine Avenue and Auto Park Drive. Assessment District No. 92-2 was
fonned by the City to provide funds for the City's acquisition of improvements which were needed for the
development of an automobile retail center. The District consists of three parcels totaling approximately 15.2
acres. All three parcels were originally located within Assessment District No. 90-2. Proceeds of the 92-2
Refunded Bonds prepaid the assessments liens securing the 90-2 Refunded Bonds. Two of the parcels are
completely developed and are occupied by auto dealerships. The remaining parcel is undeveloped and is
currently used as an inventory lot for Fuller Ford. According to the County Assessor's 2000-2001 secured ta."'(
roll, the developed parcels consist of approximately 12.7 acres and secure liens representing approximately
84% of the Reassessments levied in Assessment District No. 92-2. According to the County Assessor's
2000-2001 secured tax ro11, the undeveloped parcel consists of approximately 2.5 acres and secure liens
representing approximately 16% of the Reassessments levied in Assessment District No. 92-2.
The public improvements financed through Assessment District No. 92-2 included construction of
Brandywine Avenue from atay Valley Road to the southern boundary of Assessmem District No. 92-2,
construction of Auto Mall Drive, widening of Otay Valley Road to provide an eastbound right turn lane to
Brandywine Avenue, installation of sewer lines and a pump station, construction of other main infrastructure,
including water, sewer and stonn drains transversing and serving commercial lots within the boundaries of the
Assessment District No. 92-2, and incidental costs and expenses related thereto, including right of way
acquisition costs. All public improvements financed through Assessment District No. 92-2 have been
completed.
22
DOCSOc\80ó564v9'2"., 01,5
Allocation of Original Assessment Districts into Reassessment Districts
The following table illustrates the allocation of the Original Assessmem Districts into the
Reassessment Districts.
TABLE 1
CIillLA VISTA PUBLIC FINAL,"CING AUTHORITY
Allocation of Original Assessment Districts into Reassessment Districts
Number of Total Land + Estimated Percent of Total
Assessable Sn-ucrure Assessed Reassessment Assessed Reassessment
Original Assessment District Parcels(l) Value!!) Amount Value-to-Lien(2) Amount
AD 90-1 521 $ 93,987,688 $ 3,125,000.00 30,08:1 10.6S%
AD 90-3 2,897 625.330,002 12,325,000.00 50.74:1 42.02
AD91-] 1,126 287,959,542 4,405,000.00 65.37:1 15.02
Total Reassessment District 4,544 1.007,277,232 19,855,000.00 50.73:] 67.70
2001-1
AD 88-1 27 3~,530,442 4,485,000.00 7.70:1 15.29
AD 90-2 68 87.789.059 3,600.1)00.00 24.39:1 ]2.27
AD 92-2 3 13.003.083 1.390.000.00 9.35:1 4.74
Total Reassessment District 98 1.35.322.584 9,475,000.00 14.28:1 32.30
2001-2
Total 4.642 51.142.599.816 529.330.000.00 38.96:1 100.00%
(II According to County Assessor's 2000-2001 secured tax roll.
(21 Calculated by dividing the Total Land -;- Sn-ucrure Assessed Value by the Reassessment Amount. Does not
include direct and overlapping debt sho"", in Tables 9 and I O. If direct and overlapping debt were included,
Estimated Value-to-Lien ratios would be reduced.
Source: MuniFinancial..
Land Uses and Development Status and Estimated Assessed Value-to-Lien Ratios
As summarized in the following tables, substantial portions of the Reassessment Districts have been
developed with residential, commercial, recreational. institutional and industrial projects that are responsible
for $22,013,680,' or approximately 75% of the total Reassessment lien. Undeveloped property within the
Reassessment Districts is responsible for $7,316,320,' or approximately 25% of the total Reassessment lien.
Further detail regarding the development status and land use types within each Reassessment District
is provided by the following Tables 2 and 3. The estimated assessed value-to-lien ratios shown on Tables 2
and 3 do not include the approximately $- and $- in direct and overlapping debt for
Reassessment District 2001-1 and Reassessment District 2001-2, respectively. If direct and overlapping debt
was included, the estimated value-to-lien ratios would be reduced.
Preliminary, subject to change.
0'
.0
DOCSOC'80656-1vÇ':2245.0125
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Assessed Value-to-Reassessment Lien Ratios
Table 4 below sets forth the number of parcels within various ranges of estimated assessed value-to-
Reassessment lien ratios. The estimated assessed value-to-Reassessment lien ratios shov.1Il on Table 4 do not
include the approximately $- and $- in direct and overlapping debt for Reassessment District
2001-1 and Reassessment District 2001-2, respectively. If direct and overlapping debt were included, the
estimated value-to-lien ratios would be reduced. As summarized in Table 1, the estimated assessed value-to-
lien ratio for all parcels within the Reassessment District is approximately 29 to I, but the ratios over
individual parcels vary widely. The value of the individual parcels is significant because, in the event of a
delinquency in payment, the only remedy of the City is to foreclose on the delinquent parcel. A parcel with a
lower value-to-lien ratio may be less likely to sell at foreclosure or provide sale proceeds adequate to pay all
delinquent Reassessment installments. See "SECllUTY FOR THE BOI'<'DS - Proceeds of Foreclosure and
Tax Sales" and "SPECIAL RISK FACTORS - Propec¡y Values."
Table 4*
CHULA VISTA PUBLIC FINANCING AUTHORITY
Summary of Assessed Value-to-Reassessment Lien Ratios
Assessed Value-to- No. of % of Total % of Total
Reassessment Lien Parcels Parcels Reassesstpent Amount Reassessments
30:1 and Above Total 4.218 90.87% $13.374.917.81 45.60%
25:1 to 29.99:1 Tota] 268 5.77% 1,900,915.93 6.48
20:1 to 24.99:1 Tota] 62 1.34% 1.904.564.13 6.49
15:1 to 19.99:1 Total 18 0.39% 1,230.073.06 4.19
10:1 to 14.99:1 Total 15 0.32% 1.082,835.94 3:69
7:1 to 9.99:1 Total 17 0.37% 2.585,449.11 8.82
3:1 to 6.99:1 Total 29 0.62% 3,277,098.64 11.17
1:1 to 2.99:1 Total 8(\) 0.17% 2.054,039.36 7.00
Less than 0.99:1 Total 7{\)(O) 0.15% 1,920,105.92 6.55
Grand Total 4.642 100.00% $29.330,000.00 100.00%
(I) Includes 4 parcels purchased by the EasrLake Company from the Western Salt Company in May 2000. According to the
County Assessor's 2000-2001 secured tax roll, the 2000-0! assessed value of these 4 parcels is 530,136.640.
(0) Includes a Uriliry owned parcel that has no assessed voiue.
Source: MuniFinancial.
Largest Landowners by Reassessments
The following Tables 5 and 6 illustrate the top ten largest landowners or landowner groups in the
Reassessment Districts based on remaining Reassessments and the top ten developed and undeveloped
properties based on remaining Reassessment, respectively.
* Preliminary, subject to change.
26
DOCSOC\80656-!v9'12245 0 125
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EastLake Company
The EastLake Company, LLC (the "EastLake Company") is the major developer and largest property
owner in EastLake. The EastLake Company ove:>ees all development within EastLake and is responsible for
backbone infrastructure and community facility planning. The EastLake Company markets land to individual
builders and commercia!, industrial and retail users. The EastLake Company is a wholly owned subsidiary of
the Los Angeles-based J.G. Boswell Company, aI] agri-business concern that has extensive rea! estate holdings
and operations in the southwest United States and is the largest cotton grower in the country. The J.G. Boswell
Company has been involved in large scale real estate projects since 1959.
EastLake consists of approximately 3,200 acres and features a variety of residentia! housing
developments as well as retail, commercia! and industria! areas. EastLake is one of the largest master-planned
communities in San Diego County and, according to current plans, at completion EastLake will have a
population of approximately 22,000 residents, 8,900 homes, four million square feet of commercial industrial
development and three retail centers. Build out is anticipated to be completed by 2010.
According to the County Assessor's 2000-2001 secured tax roll as of January 1, 2000, as partially
updated by MuniFinancia!, the EastLake Company owns property with liens securing approximately 22.7% of
the Reassessments levied within the Reassessment Districts, including approximately 640 acres of
undeveloped land which the EastLake Company purchased from the Western Salt Company in May 2000. The
land purchased from the Western Salt Company is currently planned to be developed as a portion of EastLake
Phase III which is an extension of EastLake Mas;e, Planned Community.
The EastLake Company is cuITently working with the City on an amendment to the General Plan and
Specific Planning Areas in connection with the development of EastLake Phase III. The proposed
amendments would provide for the development of approximately 942 acres into four distinct planning areas
I) the Woods (East and West), 2) the Vistas, 3) the Olympic Training Center and 4) the "Panhandle ParceL"
The Woods (East and West) is planned for a 360-acre residential neighborhood designed to accommodate 667
dwelling units. The Vistas is planned for a 48S-acre residential neighborhood designed to accommodate 1,394
dwelling units. As described above under "-Reassessment District 2001-1 - Assessment District No. 90-3" the
Olympic Training Center is already developed. The "Panhandle Parcel" is a 45 acre parcel anticipated to have
its land use designation changed from park and recreation land use to publjc quasi-publjc land use. The City
cuITent!y anticipates that the amendments will be adopted in July, 2001 and that construction of Phase III will
commence in January 2002. See "RlSK F.-\CTORS - Failure to Develop Property; Future Land Use
Regulations and Growth Control Initiatives;" and "- Potential Limitations on Development."
Debt Service Coverage
The following Table 7, illustrates the estimated debt service coverage on the Bonds from Revenues,
consisting of the debt service on the Acquired Obligations. The debt service coverage shown in Table 3 is
based on the assmnption that the debt service on the Acquired Obligations is paid when due. If there are
delinquencies in the payment of the Acquired Obligations, the estimated debt service coverage shown in Table
3 will not be realized. See "-Delinquency Histoty" below and "SPECIAL RlSK FACTORS" for a
description of certain events that would increase the likelihood of payment delinquencies, particularly on the
undeveloped property which is currently responsible to pay approximately 25% of the Reassessments.
29
DOCSOC'8065~v9\1èèl50 I è5
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Delioquency History
The following Table 6 illustrates the rusrorical delinquencies for assessments levied for the Original
Assessment Districts from fiscal year 1997-98 to fiscal year 1999-00. -
31
DOCSOC806564v9122245.0 125
Table 8
CITY OF CHULA VISTA
Delinquency Summary by Original Assessment District
Original
Assessment Amt. % Dollars Parcels Parcels % Parcels
District Year Amount Levied Delinquent Delinquent Levied Delinquent Delinquent Data Date
88-1 1997/98 $634,080.06 0.00% 26 0 0.00% 06/30/98
88-1 1998/99 610,218.72 0.00% 26 0 0.00% 05/07/99
88-1 1999/00 613.333.74 $ 21,259.11 3.47% 26 2 7.69% 05/03/00
90-1 1997/98 $ 403,683.22 $ 23,664.75 5.86% 497 9 1.81% 06/30/98
90-1 1998/99 412,351.44 8,738.28 2.12% 522 16 3.07% 05/07/99
90-1 1999/00 415,213.74 11,779.73 2.84% 522 18. 3.45% 05/03/00
90-2 1997/98 $514,990.66 $ 95,711.21 18.59% 103 6 5.83% 06/30/98
90-2 1998/99 517,178.14 145,974.82 28.23% 67 22 32.84% 05/07/99
90-2 1999/00 513.765.70 17,612.44 3.43% 67 6 8.96% 05/03/00
90-3 1997/98 $1.869,673.62 $124.446.28 6.66% 1.938 62 3.20% 06/30/98
90-3 1998/99 1,711,507.98 37,586.18 2.20% 1.956 72 3.68% 05/07/99
90-3 1999/00 1,660,982.22 31,706.01 1.91% 2.307 103 4.46% 05/03/00
91-1 1997/98 5530,196.08 5160.520.63 30.28% 786 12 1.53% 06/30/98
91-1 1998/99 560,847.98 6.397.79 1.14% 786 29 3.29% 05/07/99
91-1 1999/00 559,030.12 8.864.56 1.59% 1.075 44 4.09% 05/03/00
92-2 1997/98 $178,935. 02 0 0.00% - 0 0.00% 06/30/98
92-2 1998/99 179,685.00 0 0.00% 3 0 0.00% 05/07/99
92-2 1999/00 180,858.30 0 0.00% ' 0 0.00% 05/03/00
Source: MuniFinancial
Direct and Overlapping Debt
Set forth in Tables 9 and 10 are the existing and authorized indebtedness payable ITom taxes,
assessments and fIXed charges that may be levied on property within the Reassessment District 2001-01 and
2001-02, respectively. Including the Refunded Bonds issued by the Original Assessment Districts, there is
currently $ in Reassessment District 2001-1 and $ in Reassessment District 2001-2 of
debt secured by assessments, ad valorem taxes and special taxes levied on land within the Reassessment
Districts and another $ and $ , respectively, of authorized and unissued debt in this
category that could be issued in the future.
The City has no control over the amount of additional debt payable ITom taxes or assessments levied
on all or a portion of the property within the Reassessment Districts which may be incurred in the future by
other governmental agencies having jurisdiction over all or a portion of the property within the Reassessment
Districts. Other public agencies may issue additional indebtedness on property within the Reassessment
Districts at any time. Furthermore, nothing prevents the owners of property within the Reassessment Districts
from consenting to the issuance of addjtional debt by other governmental agencies which would be secured by
taxes on a parity with the Reassessments or assessments which would be subordinate to the Reassessments. To
32
DOCSOC'80ò56-1v9' 222"5 .0125
the extent such indebtedness is payable from assessments, other special taxes levied pursuant to the \<!eIlo-
Roos Act or taxes, such assessments, special taxes and taxes wi]] be secured by liens on the property within LI,e
Reassessment Districts.
Accordingly, the debt on the property within the Reassessment Districts could increase, without any
cotTesponding increase in the value of the property therein. The imposition of such additional indebtedness
could reduce the wi]]ingness and ability of the property owners within the Reassessment Districts to pay LI,e
Reassessments when due. See "SPECIAL RISK FACTORS - Cumulative Burden of Parity Taxes, Special
Reassessments and Development Costs." Moreover, in the event of a delinquency in the payment of
Reassessments, no assurance can be given that the proceeds of any foreclosure sale of property with delinque:Jt
Reassessments would be sufficient to pay the delinquent Reassessments. See "SPECIAL RISK FACTORS -
Land Values."
Tables 9 and 10 have been obtained from California Municipal Statistics, Inc. The City has not
independently verified and does not guarantee the accuracy ofthis infonnation.
33
DOCSOC' 806564,9'22245.0125
Table 9
CITY OF OlliLA VISTA
Reassessment District No. 2001-1
Secured Property Tax Roll and Direct and Overlapping Debt As of June 1,2001
2000-01 Assessed Valuation: $719,317,690
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 611/01
Metropolitan Water District 0.073% S 385,060
San Diego County Water Authority 0.419 19,798
Otay Municipal Water District, I.D. No. 27 29.111 3,279,354
Southwestern Community College District 3.874 1,549,600
Sweetwater Union High School District 4.656 176,928
Chuia Vista City Scbool District 6.806 2,854,436
Chula Vista City School District Community Facilities District No. I (Estimated) 29.303 2,555,222
Sweetwater Union High School District Community Facilities District No. I (Estimated) 61.477 22,493,673
City ofChula Vista Assessment District "10.90-1 100.000 3,125,000 II)
City ofChula Vista Assessment District "10.90-3 100.000 12,325,000 I'I
City of Chula Vista Assessment District No. 91-1 100.000 4.405.000 II)
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT S53,169,071
OVERLAPPING GENERAL FUND OBLIGATION DEBT:
San Diego County General fund Obligations 0.403% $ 2.166.656
San Diego County Pension Obligations 0.403 1,278,900
San Diego County Superintendent of Schools Obligations 0.403 8,765
Otay Municipal Water District Certificates of Participation 8.095 2,208,721
Southwestem Commumty College District General Fund Obligations 4.141 172.887
$weerwarer Union High School District Certificates of Participation 5.048 1,329,138
Chula Vista City School District General Fund Obligations 7.176 3,758,789
City of Chula Vista Certificates of Participation 8.685 3,234,294
City of Chula Vista Pension Obligations 8.685 1.230.363
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT $15,388,513
Less: Otay Municipal Water District Certificates of Participation (100% self-supporting) 2.208.721
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT $13,179,792
GROSS COMBINED TOTAL DEBT S68.557,584 ",
NET COMBINED TOTAL DEBT $66.348.863
'I! Assessment Districts 10 become part of Re:¡.ssessment District No. 200 I-I.
"I Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded capital
le:¡.se obligations.
Ratios to 2000-01 Assessed Valuation:
Direct Debt (SI9,855,000) ..............................................................2.76%
Total Direct and Overlapping Tax and Assessment Debt... ..7.39%
Gross Combined Total Debt... ................. ..... ...... ..9.53%
Net Combined Total Deb!.... ................... ...... ..9.22%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/00: SO
Source: California Municipal Sratistics, Inc.
34
DOCSOC 806564v9'22245.0125
Table 10
CITY OF CHULA VISTA
Reassessment District No. 2001-2
Secured Property Tax Roll and Direct and Overlapping Debt As of June 1,2001
2000-01 Assessed Valuation: $131,953,920
DIRECT AND OVERLAPPING TAX AND ASSESSME:--T DEBT: % Aoolicable Debt6fl/01
Metropolitan Water District 0.007% $ 36,924
San Diego County Water Authority 0.042 1,985
Southwestern Conununity College District 0.711 284,400
Sweetwater Union High School District 0.854 324,520
Chula Vista City School District 1.248 523,411
Chuia ViSta City School District Conununity Facilities District No. I (Estimated) 1.386 120,859
Sweetwater Union High School District Conununity facilities District No. I (Estimated) 2.907 1,063,635
City of Chula Vista Reassessment District No. 2001-2 100.000 (I)
-
TOT.t>J. DIRECT AND OVERLAPPING TAX A..'ID ASSESSMENT DEBT 52,355,734
OVERLAPPING GENERAL FUND OBLIGATION DEBT: % Aoolicable (OJ Debt 6/1/01
San Diego County General fund Obligations 0.041% 5 220,429
San Diego County Pension Obligations 0.041 130,111
San Diego County Superintendent of Schools Obligations 0.041 892
Otay Municipal Water District Cet1ificates of Panicipation 0.81, 222.918
SouthweStern Conununity College District General Fund Obligations 0.418 17.452
Sweetwater Union High School District Cet1ificates of ParTIcipation 0.509 134.020
Chula Vista City School District General Fund Obiigations 0."iZ~ 379.231
City ofChu!a Vista Certificates ofPanicipation 0.8,6 326,222
City ofChula Vista PensIOn Obligations 0.8,6 124.099
TOTAL GROSS OVERLAPPING GENER.L>.L FUND OBLIGATION DEBT 51,555.3,4
Less: Otay Municipal Water District Certificates of Participation (100% self-supporting) 222.918
TOTAL NET OVERLAPPING GENER.L>.L FUND OBLIGATION DEBT 51,332,456
GROSS COMBINED TOTAL DEBT 53,911,108 (J)
NET COMBINED TOTAL DEBT 53,688.190
(I) Excludes tefunding 1915 Act bonds to be sold and issues to be refunded.
!O) Based on redevelopment adjusred all propeny assessed valuation of5"iZ,567,040.
(3) Excludes tax and revenue anticipation notes. revenue. mot1gage revenue and tax allocation bonds and non-bonded caDital
lease obligations.
Ratios to 2000-01 Assessed Valuanon:
Direct Debt.................................................. .................... ............ - %
Total Direct and Overlapping Tax and Assessment Debt... ..... ..... 1.79%
Gross Combined Total Debt................... ................. ....... .....2.96%
Net Combined Total Debt.. .............. ................................ ......... ..2.80%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/00: SO
Source: California Municipal Statistics, Inc.
35
DOCSOC80656-!vo\22145.01"5
SPECIAL RISK FACTORS
While the Series A Bonds will be insured, the following infon11ation should be consiåeced by
prospective investors in evaluating the Bonds and the Acquired Obligations. However, it does not purport to
be an exhaustive listing of the risks and other considerations which may be relevant to an investment in the
Bonds. In addition, the order in which the following infOn11ation is presented is not intended to reflect the
relative importance of any such risks. If any risk factor materializes to a sufficient degree, it alone cou]å åelay
or preclude payment of principal of or interest on the Bonds.
The Bonds are Limited Obligations of the Authority
Funds for the payment of the principal of and the interest on the Bonds are derived from debt service
payments on the Acquired Obligations which are derived only from annual Reassessment installments. \Vhile
a coverage factor has been established in structuring the annual debt service on the Acquired Obligations (see
"THE REASSESSMENT DISTRICT - Debt Service Coverage), the amount of annual Reassessment
installments that are collected by the City could be insufficient to pay principal of and interest on the Acquired
Obligations åue to non-payment of such annual Reassessment installments levied or åue to insufficient
proceeds received from a judicial foreclosure sale of land within the Reassessment Districts foilowing
åelinquency. The City's legal obligations with respect to any delinquent Reassessment installments are li.'Tlited
to (I) payments from the Reserve Funds to the extent of funds on deposit therein, anå (2) the instir~¡ion of
judicial foreclosure proceeåings under certain circumstances with respect to any parcels for wrucn the
Reassessment installment is åelinquenL See "SECURITY FOR THE BONDS - Covenant for Superior Court
Foreclosure." The City has determineå that it will not obligate itself to aåvance funds from its tre:!..Sury to
cover any delinquency on the Reassessments or payments on the Acquired Obljgations. The Bonds C"'-~-lOt be
accelerated in the event of any default.
The Reassessments are Not Personal Obligations of the Property Owners
Under the provisions of the Act, Reassessment jnstallments will be billed to the owner of eaÓ parcel
in the Reassessment Districts against which there is an unpaid Reassessment, with such billing to be maåe on
the regular property tax bills sent to such owners. The Reassessment installments are due and payabie at the
same time and bear the same late charges anå penalties as for non-payment of regular prope,,!, tax
installments.
The obligation to pay Reassessment installments åoes not constitute a personal obligation of the
CUfTent or subsequent owners of the respective parcels which are subject to the Reassessme:lt liens.
Enforcement of Reassessment payment obligations by the City is limited to judicial foreclosure in the San
Diego County Superior Court pursuant to Sections 8830 et seq. of the California Streets and Highways Code.
There is no assurance that any current or subsequent owner of a parcel subject to a Reassessment lien "ill be
able to pay the Reassessment installments or that such owner will choose to pay such installments even though
fmancially able to do so.
The Acquired Obligations are Limited Obligations of the City
The obligation of the City, as issuer of the Acquired Obligations, to advance the amount of
delinquencies to the Trustee, as the registered holder of the Acquired Obligations, is strictly limited to funds on
deposit in the Reserve Funds established and held by the Trustee pursuant to the Indenture. Pursuant to
Section 8769 of the California Streets and Highways Code, the City has expressly elected not to obligate itself
to advance available funds from the City's treasury to make up deficiencies in the amount of Reassessment
installments collected.
Sustained failure by property owners to pay Reassessment installments when due, combineå with
åepletion of the Reserve Funds held by the Trustee, and the inabjlity of the City to sell parcels which have
36
DOCSOC806564v9\2"""5.0 125
become subject to judicial foreclosure proceedings for amounts sufficient to cover the delinquent
Reassessment installments, will most likely result in the inability of the City to make full or punctual payments
of interest on or principal of any of the Acquired Obligations, which would likely result in a default on the
Bonds.
Potential Early Redemption of Bonds from Prepayments
Property owners within the Reassessment Districts are pennitted to prepay their Reassessments at any
time. Prepayments of Reassessments will result in a redemption of Acquired Obligations on the first March 2
or September 2 which is more than 30 days following the receipt of the prepayment. The proceeds of the
Acquired Obligations so redeemed will then be used to make a mandatory redemption of the Bonds. The
Series A Bonds and the Series B Bonds will be called on a pro rata basis from the proceeds of the Acquired
Obligations redeemed from prepayments. See "THE BONDS - Redemption - Mandatory Redemprion of
Bonds."
Risks of Real Estate Secured Investments Generally
The Bondowners will be subject to the risks generally incident to an investtnent secured by real estate,
including, without limitation, (i) adverse changes in local market conditions, such as changes in the market
value of real property in the vicinity of the Reassessment Districts, the supply of or demand for competitive
properties in such area, and the market value of commercial and industrial buildings anclior sites in the event of
sale or foreclosure. (ii) changes in real estate tax rates and other operating expenses, government rules
(including, without limitation, zoning laws and laws relating to threatened and endangered species) and fiscal
policies and (iii) natural disasters (including, without limitation, earthquakes and floods), which may result in
uninsured losses.
Failure to Develop Property; Future Land Use Regulations and Growth Control Initiatives
Approximately 25% of the Reassessments are secured by liens on undeveloped property, and the
assessed value-to-Reassessment lien ratio for such undeveloped property is 5.46: 1. If a developer, merchant
builder or subsequent purchaser or property owner experiences [mancial difficulties and is unwilling or unable
to pay the annual Reassessment installments when due, it could result in a default in the payments of principal
of and interest on the related issue of Acquired Obligations, which could result in the total depletion of, first,
the Subordinate Reserve Fund and, second, the Senior Reserve Fund prior to the replenishment from the
resales of property upon a foreclosure. In that event, there could be a default in payment of the principal of
and interest on the Bonds.
The motivation of the present or future owners of the undeveloped property in the Reassessment
Districts to pay the Reassessment installments when due may be diminished in the event significant delays are
experienced in development efforts. Further development of property in the Reassessment Districts may also
be affected by changes in general economic conditions, fluctuations in the real estate market, changes in the
ownership of the land, changes in the income tax treattnent of real property ownership, availability of utilities
at a reasonable cost and other factors. In addition, any proposed development is subject to existing and future
federal, state and local regulations. Approval will be required from various public agencies in connection with
the design, nature and extent of the required public improvements, and such matters as land use and zoning.
Failure to meet any such future regulations or obtain any such approvals in a timely manner could delay or
adversely affect any proposed development of the parcels ofland in the Reassessment Districts.
Under cum:nt California law, it is generally accepted that proposed development is not exempt from
future land use regulations until building pennits have been properly issued and substantial work has been
performed and substantial liabilities have been incurred in good faith reliance on such pennits. There can be
no assurance that land development within the Reassessment Districts will not be adversely affected by future
3ì
DOCSOC\80656-!v9\200'¡5.01 05
governmental policies or grov,'Ih control initiatives, including, but not limited to, governmental policies Or
initiatives to restrict or control development or further governmental regulation and protection.
In the past, a number of communities in Southern Califomia have placed on the ballot initiative
measures intended to control the rate of furure development. It is possible that future initiatives could be
enacted, could become applicable to the proposed development and could negatively impact the ability of
developers, merchant builders, and their successors, to complete development within the Reassessment
Districts. The application of future land use regulations to the proposed development could cause significant
delays and cost increases in the completion of the development and could cause the land values of the
undeveloped property within the Reassessment Districts to decrease substantially.
Development of certain portions of the land within the Reassessment Districts is contingent upon
construction or acquisition of major public iwprovements such as arterial streets, water distribution facilities,
sewage collection and transmission facilities. gas, telephone and electrical facilities, as well as local in-tract
improvements including site grading. There can be no assurance that all of these improvements wi11 be
constructed. The cost of these public and private in-tract and off-site improvements could increase the public
and private debt for which the land within L':1e Reassessment Districts provide security. This increased debt
could reduce the willingness and/or ability of L'le property owners to pay the annual Reassessment installments
levied against their property.
The development of property v,iL'IiIt the Reassessment Districts is subject to a number of
contingencies which could slow or prevent fernre development of the undeveloped land. Consequently, no
assurance can be given that such development wi11 be panially or fully completed, and in assessing the
investment quality of the Bonds, prospective purchasers should evaluate the risks of noncompletion, including
but not limited to the risks described below.
First, undeveloped land is less valuDle than such land in a developed condition and provides less
valuable security to the Bondov,l1ers should it De necessary for the City to foreclose due to the nonpayment of
Reassessment installments which secure the .-\cquired Obligations.
Second, if the remaining undeveloped land in the Reassessment Districts is not developed, the number
of likely purchasers at a foreclosure sale, in the event the City forecloses the lien of delinquent unpaid
Reassessment installments, is likely to be reduced.
Third, more than 40% of the annual Reassessment installments are payable from the top 10 property
owners measured by total Reassessments. Because of this concentration of ownership, the timely payment of
the Bonds depends upon the willingness and ability of these landov,l1ers to pay the Reassessments on their
property, which is primarily undeveloped, when due.
Bond owners should assume that any event that significantly impacts the ability to develop land in the
Reassessment District may cause the property values of undeveloped property to decrease substantially from
the appraised values set forth herein and could affect the willingness and ability of the owners of the
undeveloped property to pay the Reassessment installments when due. See "SPECIAL RISK FACTORS -
Delinquency Histoty".
Potential Limitations on Development
Growth Management Oversight Commission ("GMOC"). The City has established a Threshold
Standards Policy (the "Threshold Policy") through the adoption of a Growth Management Ordinance, which
established eleven public facility and service area "quality of life" measures. The eleven public facility and
service thresholds indude police, fire and emergency medical services, traffic, schools, parks and recreation,
libraries, sewer, drainage, fiscal impact, air quality and water. The Threshold Policy established goals,
38
DOCSOC\80656->v9'22è45.0125
objectives, standards or thresholds and applicable implementation measures for the eleven seevices. The
GMOC was created to provide an annual independent review for compliance with the Threshold Policy.
The GMOC review for compliance occurs on a fiscal year cycle. The Threshold Policy calls for
preparation of short-rnnge, 12 to 18 month, and mid-rnnge, five to seven year, development forecasts. These
forecasts are utilized by City staff and external service agencies to evaluate projected service levels, identify
any potential threshold problems and address implementation measures to avoid level of service problems.
As a condition to developing the property within the Reassessment Districts, a develop,,", must, prior
to fmal map approval for a parcel, enter into an agreement with the City acknowledging that building pennits
may be withheld if any of the required development threshold limits set in the City transponation planning
phase are exceeded. The tentative map conditions for the land within the Reassessment Districts subject the
land to the provisions of the GMOc.
The Threshold Policy includes traffic thresholds which require that level of service "C" be maintained
on the arterial street system except level of service "D" can occur for no more than two hours of the day. The
level of service is a descriptive and qualitative measure of the degree of traffic congestion experienced by
motorists. There are six levels of congestion, assigned letters' A' through 'F.' Levels of service' A' Through
'D' represent generally acceptable levels of service with level of service' A' corresponding to no congestion
and level of service 'C' represents a rnnge in which the ability of vehicles to maneuver is añected by the
presence of other vehicles and speeds begin to show some reduction. Level of service 'D' is approaching
roadway capacity with the ability to maneuver being severely restricted and traffic is subject to speed
reductions. Level of service 'E' is at roadway capacity with unstable speeds. Level of service 'F' occurs when
roadway capacity is exceeded, excessive delays are experienced and stop-an-go traffic conditions exist.
In the spring of 2000, traffic analyses were perfonned for the Eastern Territories Area assuming the
completion of a regional roadway known as Olympic Parkway as currently phased, but without the completion
of State Route 125 (a north-south toll road proposed from Highway 54 to the Merican border). The analysjs
included forecasts by property owners of 16,138 units being ready for occupancy between 2000 and 2004 or an
average of 3,218 units per year. (The actual number of units occupied in 2000 was less than that average at
2,583 units). Based on those assumptions, without any attempts either to increase roadway capacities or slow
supply, the City could experience an unacceptable level of service in the a.m. peak period on a segment of
Telegraph Canyon Road approaching 1-805 sometime in late 2002. Should the traffic threshold be exceeded,
the Threshold Policy calls for a building pennit moratorium to be considered by the City Council until the
threshold problem can be mitigated.
To avoid the possibility of a moratorium, the City is working with the development community to
identify additional roadways that can be constructed should State Route 125 be delayed (currently expected to
be completed by 2005) and the rapid pace of development be sustained. One such roadway that could increase
capacity is an interim facility within portions of the State Route 125 corridor. So far, the City has collected $9
million in its transportation development impact fee program for the interim State Route 125 facility, the fIrSt
phase of which is estimated to cost $12.4 million. Other transponation improvements that are being studied in
the next year which would increase system capacity are interchange improvements at 1-805 and East "H"
Street, 1-805 and Telegraph Canyon Road, a half diamond interchange at 1-805 and East Palomar Street, the
southerly extension of Paseo Ranchero in Otay Ranch from Telegraph Canyon Road to Main Street, and the
extension of Mt. Miguel Road in San Miguel Ranch westerly to Proctor Valley Road. These are all possible
improvements to allow for continued development until SR#125 can be completed.
In addition, the first phase of Olympic Parkway from 1-805 to Paseo Ranchero, a new 6 lane east-west
facility, will be open to traffic on June 23, 2001. The remaining three phases all the way east to the eastern
city limits is being expedited to be completed by September, 2002 instead of the previous 2003 time schedule.
These improvements will significantly relieve the congestion on Telegraph Canyon Road. The roadway level
39
DOCSOC80656->v9\222-'5.0125
of service at the city's critjcal intersections will be retested following the completion of these various phases to
see how much the level of service has been improved.
Concurrently, on the supply side, the City is exploring Transportation Demand Management Measures
to reduce the peak hour traffic demand. Surveys are being prepared for major employers and residents living
east of I-80S to explore the level of interest in techniques such as staggered work hours, van pooling and
carpooling to alleviate the peak a.m. and p.m. traffic volumes.
In sum, the City is continuing to monitor development activity, conducting additional traffic studies,
studying various absorption models, pursuing how the interim facility within the State Route 125 corridor
might be constructed and looking at other roadway improvements to enhance capacity.
If the traffic forecasts prove accurate, and if the development pace does not decrease from the levels
projected by property owners, and if State Route 125 is delayed significantly, and if no additional roadway
capacity can be delivered in the interim, the City may impose a development slowdown (i.e. a metering of
permits) in lieu of ever having to impose a moratorium on the issuance of building permits. The City would
consider whether such a planned slowdown should acknowledge and give priority to marketing studies and
baseline development that was projected in connection with the issuance of bonds by assessment disnicts
formed by the City. No assurance can be given that such priority will be established.
A development slowdown or moratorium on development could adversely impact the rate of
development in the Disnict and presents certain risks to the owners of the Bonds. See "SPECIAL RISK
FACTORS - Failure to Develop Properties" and "- FutUre Land Use Regulations and GroWth Control
Initiatives. "
Investors should note that, in panicular, the City may amend its GroWth Management Ordinance from
time to time and no assurance can be given that itS terms will not be more resnictive on development than
those currently in effect.
Bankruptcy and Foreclosure Delays
The payment of Reassessment installments and the ability of the City to foreclose the lien of a
delinquent Reassessment is normally delayed by and may be limited in other ways by bankruptcy, insolvency,
or other laws generally affecting creditors' rights or by State laws relating to judicial foreclosure. In addition,
the prosecution of a judicial foreclosure may be delayed due to congested local court calendars or procedural
delays.
The various legal opinions to be delivered concurrently with the delivery of the Bonds (including
Bond Counsel's approving legal opinion) will be qualified as to the enforceability of the various legal
instruments, including the Bonds and the Acquired Obligations, by bankruptcy, reorganization, insolvency or
other similar laws affecting the rights of creditors generally, by the application of equitable principles and by
the exercise of judicial discretion in appropriate cases.
Although bankruptcy proceedings would not cause the lien of the Reassessments to become
extinguished, bankruptcy of a property owner or of a partner or other equity owner of a property owner, could
result in a stay of enforcement of the lien for the Reassessments, a delay in prosecuting Superior Court
foreclosure proceedings or adversely affect the ability or willingness of a property owner to pay the
Reassessments and could result in the possibility of delinquent Reassessment installments not being paid in
full. In addition, the amount of any lien on property securing the payment of delinquent Reassessment
installments could be reduced if the value of the property were determined by the bankruptcy court to have
become less than the amount of the lien, and the amount of the delinquent Reassessment installments in excess
of the reduced lien could then be treated as an unsecured claim by the court. Any such stay of the enforcement
of the lien for the Reassessments, or any such delay or non-payment, would increase the likelihood of a delay
40
DOCSOC'.806564v9'22245.0125
or default in payment of the principal of and interest on the Bonds and the possibility of delinquent
Reassessment installments not being paid in full. Moreover, amounts received upon foreclosure sales may nO!
be sufficient to fully discharge delinquent Reassessment installments. To the extent that a significant
percentage of the property in the Reassessmem Districts is the subject of bankruptcy proceedings, the payment
of the Reassessment installments and the ability of the City to foreclose the lien of a delinquent unpaid
Reassessment installments could be extremely curtailed by bankruptcy, insolvency, or other laws generally
affecting creditors' rights or by the laws of the State relating to judicial foreclosure.
FDIC/Federal Government Interests in Properties
The ability of the City to foreclose the lien of delinquent unpaid Reassessment installments may be
limited with regard to properties in which the Federal Deposit Insurance Cotporation (the "FDIC") has an
interest. In the event that any financial institUtion malGng any loan which is secured by real property within
the Reassessment Districts is taken over by the FDIC, and prior thereto or thereafter the loan or loans go into
default, then the ability of the City to collect interest and penalties specified by State law and to foreclose the
lien of delinquent unpaid Reassessment installments may be limited.
The FDIC's policy statement regarding the payment of state and local real property taxes (the "Policy
Statement") provides that property owned by the FDIC is subject to state and local real property taxes OIùY if
those ta..xes are assessed according to the property's value, and that the FDIC is immune from real property
ta..xes assessed on any basis other than prope:ry value. According to the Policy Statement, the FDIC will pay
its property tax obligations when they become due and payable and will pay claims for delinquent property
taxes as promptly as is consistent with sound business practice and the orderly administration of the
jnstirution's affairs. unless abandonment of the FDIC's interest in the property is appropriate. The FDIC will
pay claims for interest on delinquent property taxes owed at the rate provided under state law, to the extent the
interest payment obligation is secured by a valid lien. The FDIC will not pay any amounts in the nature of
fines or penalties and will not pay nor recognize liens for such amounts. If any property taxes (including
interest) on FDIC-o'Wlled property are secured by a valid lien (in effect before the property became owned by
the FDIC), the FDIC will pay those claims. The Policy Statement further provides that no property of the
FDIC is subject to levy, attachment, gamishment. foreclosure or sale without the FDIC's consent. In addition,
the FDIC will not permit a lien or security interest held by the FDIC to be eliminated by foreclosure without
the FDIC's consent.
The Policy Statement states that the FDIC generally will not pay non-ad valorem ta.xes, including
special assessments, on property in which it has a fee interest unless the amount of tax is f!Xed at the time that
the FDIC acquires its fee interest in the property, nor will it recognize the validity of any lien to the extent it
putports to secure the payment of any such amounts. Special assessments due each year are specifically
identified in the Policy Statement as being imposed each year and therefore covered by the FDIC's federal
unmuruty.
The FDIC has filed claims against the City of Orange, California in the United States Bankruptcy
Court and in Federal District Court contending, among other things, that special taxes are not ad valorem
taxes, and therefore not payable by the FDIC, and any special taxes previously paid by the FDIC must be
refunded. The FDIC is also seeking a ruling that special taxes may not be imposed on properties while they
are in FDIC receivership. The Bankruptcy Court ruled in favor of the FDIC's positions and, on March 22,
1999, the United States Bankruptcy Appellate Panel of the Ninth Circuit affmned the decision of the
Bankruptcy Court. The County of Orange has appealed such ruling to the United States Court of Appeals for
the Ninth Circuit and the FDIC has cross-appealed, The Ninth Circuit has not yet issued a ruling on the matter.
Based on the records of the County Assessor, the FDIC does not cUITently own any of the property in the
Reassessment District.
The City is unable to predict what effect the application of the Policy Statement would have in the
event of a delinquency in the payment of Reassessment installments on a parcel within the Reassessment
41
DOCSOC80656-1v91l2245.0125
Districts in which the FDIC has or obtains an interest, although prohibiting the lien of the FDIC to be
foreclosed out at a judicial foreclosure sale could reduce or eliminate the number of persons willing to
purchase a parcel at a foreclosure sale. Such an outcome could cause a draw on the Reserve Funds and
perhaps, ultimately, a default in payment on the Bonds.
Price Realized Upon Foreclosure
Section 8832 of the Streets and Highways Code prescribes the minimum price (the "Minimum Price")
at which property may be sold in a judicial foreclosure resulting from delinquencies on assessment
instalhnents. The Minimum Price is the amount equal to the delinquent instalhnents of principal and interest
of the assessment, together with all interest, penalties, costs, fees, charges and other amounts more fully
detailed in said Section 8832. However, Section 8836 of the Streets and Highways Code provides that the
court may authorize a sale at less than the Minimum Price if the court makes certain determinations, based on
the evidence introduced at the required hearing, which evidence must establish that no ultimate loss will result
to the bondholders or that no other remedy is acceptable and at least 75% of the bondholders consent to a sale
at less than the Minimum Price. Upon issuance of the Acquired Obligations, the Trustee will be the registered
owner of 100% of the Acquired Obligarions.
The Reassessment lien upon property sold pursuant to this procedure at a lesser price than the
Minimum Price would be reduced by the difference betWeen the Minimum Price and the actual sale price. In
addition, the court would pennit participation by the Authority, as owner of all of the Acquired Obligations, in
its consideration of the petition as necessary to its determination. Reference should be made to Section 8836
of the Streets and Highways Code for the complete presentation of this provision.
If foreclosure proceedings do not result in full collection of delinquent Reassessment insIalhnents, it is
possible that owners of the Bonds may not receive payment of principal of or interest on the Bonds.
Natural Disasters
The Reassessment Districts. like all California communities, may be subject to unpredic:able seismic
activity, flfes due to the vegetation and topography, or flooding in the event of unseasonable rainfall. The
occurrence of seismic activity, flfes or flooding in or around the Reassessment District couid result in
substantial damage to propenies in the Reassessment Districts which, in turn, could substanriaI!y reduce the
value of such properties. As a result of the occurrence of such an event, a substanrial ponion of the property
owners may be unable or unwilling to pay the Reassessment instalhnents when due, and the Subordinate
Reserve Fund and the Senior Reserve Fund may eventually become depleted. In addition, the value of land in
the Reassessment Districts could be diminished in the aftermath of such natural events, reducing the resulting
proceeds of foreclosure sales in the event of delinquencies in the payment of the Reassessment ins-.aIhnents.
Priority of Reassessment Liens
The Reassessments and each installment thereof and any interest and penalries thereon constitute a
lien against the parcels in the Reassessment Districts on which they were imposed until the same are paid.
Such lien is subordinate to all fIXed special assessment liens previously imposed upon the same property, but
has priority over all private liens and over all fIXed special assessment liens which may thereafter be created
against such property. The Reassessment lien is co-equal to and independent of the lien for general and special
ta."'{es. While there are no fIXed special assessment liens with priority over the Reassessment Districts' lien and
the remaining Original Assessment Districts lien on any of the parcels of land in the Reassessment District,
there are liens for special taxes and the recurring lien for general property taxes. See "TIlE RE,ASSESSMENT
DISTRICT - Direct and Overlapping Debt" and "SPECLAJ. RISK FACTORS - Cumularive Burden of Parity
Taxes, Special Reassessments and Development Costs."
42
DOCSOC\806564v9122245.0125
Land Values
The value ofland within the Reassessment Districts is an important factor in evaluating the investment
quality of the Bonds and the Acquired Obligations. In the event that a property owner defaults in the payment
of an Reassessment installment, the City's only remedy is to judicially foreclose on that property. Prospective
purchasers of the Bonds should not assume that the property within the Reassessment Districts could be sold
for the appraised or assessed value described herein at a foreclosure sale for delinquent Reassessment
installments or for an amount adequate to pay delinquent Reassessment installments. Reductions in property
values within the Reassessment Districts due to a downturn in the economy or the real estate market, events
such as earthquakes, droughts, or floods, stricter land use regulations, threatened or endangered species or
other events may adversely impact the security underlying the Reassessments.
The actual market value of the property is subject to future events such as downturn in the economy,
occurrences of certain acts of nature and the decisions of various governmental agencies as to land use, all of
which could adversely ÌInpact the value of the land in the Reassessment Districts which is the security for the
Acquired Obligations, which secure the Bonds. As, discussed herein, many factors could adversely affect
property values or prevent or delay land development within the Reassessment Districts.
Threatened and Endangered Species
In recent years, there has been an increase in activity at the State and federal level related to the
listing. or possible future listing, as threatened or endangered species of certain plant and animal species found
in the State.
Threatened and endangered species exist on the undeveloped land within the Reassessment Districts
including the atay tarplant and least Bel1's vireo. The presence of threatened or endangered species in the
Reassessment Districts could adversely impact the ability of owners of undeveloped property within the
Reassessment Districts to develop such property. This, in turn, could reduce the value of the affected property
and the ability or willingness of the owners of such property to pay the Reassessment installments when due.
The City, other public agencies and certain property owners within the Reassessment Districts have worked
with State and federal regulators to mitigate environmental concerns raised by regulatory agencies.
Impacts to federal and state listed species. including atay tarplant and least Bell's vireo, cannot occur
without the appropriate permit. If the Implementing Agreement for the Chula Vista Multiple Species
Conservation program Subarea Plan has been approved by the U.S. Fish and Wildlife Service and the
California Department of Fish and Game and adopted by the City of Chula Vista, then impacts to any of the
species covered by the Subarea Plan will require a Habitat Loss and Incidental Take pennit through the City,
pursuant to the City ordinance implementing the Subarea Plan. Should the Implementing Agreement for the
Subarea Plan not be adopted at the time of project approval, the project proponent may be required to obtain
pennits (e.g., Section 7 or Section lO(a) under the federal and state Endangered Species Acts) to mitigate
impacts to listed species. Future events related to endangered or threatened species and other environmental
concerns could delay, reduce or stop development on certain of the undeveloped property within the
Reassessment Districts. Moreover, no assurance can be given that all of the required pennits will be obtained
in a timely manner or at all.
Hazardous Substances
Hazardous substances in the form of contaminated soils or groundwater have been found on certain
parcels of land formerly owned by the Darling Delaware Company located within As,sessment District
No. 90-2. The Darling Delaware Company property was the site of a former glue factory. A plume of non-
toxic groundwater contamination exists under these parcels. On March 9, 1993, the City of Chula Vista and
the Redevelopment Agency entered into an agreement with the Darling Delaware Company that deferred
payment of the Assessment District 90-2 assessments for their property. The deferral was granted due to
43
DOCSOc,806564v91l22"5.0 125
ongoing efforts to clean up the property "-"d the resulting limitatjons on developabilityisale of the property.
The Agency paid the assessment and "lo"-"ed" to the Darling Delaware Company the 5440,087 assessment
amount which was to be repaid, upon development or sale, to the Agency.
The Darling Delaware Company sold the property to LandBank in December 1999. LandBank plans
to remediate the property and sell it to poteatial end-users. LandBank is cuITently entering the entitlement and
review process and expects development to occur by the end of 200 1.
Although the fonner Darling Delaware Company parcels do not secure the Reassessments, they are
located "upstream" from parcels that do. The City reports that current tests show that the contaminated
groundwater plume has not migrated. However, no asStmlllces can be given that the plume will not migrate to
parcels securing reassessments in the future.
A reduction in the value of a parcel within the Reassessment Disnicts could occur as a result of a
claim with regard to a hazardous substance. In general, the owners and operators of a parcel within the
Reassessment Disnicts may be required by law to remedy conditions of such parcel relating to release or
threatened releases of hazardous substances. The federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980. sometimes refeITed to as "CERCLA" or the "Superfund Act," is the
most well known and widely applicable ofL"ese laws, but California laws with regard to hazardous substances
are similarly sningent. Under many of ,,'-¡ese laws, the OViTIer or operator is obligated to remedy a hazardous
substance condition of the property whethe, or not the owner or operator had anything to do with creating or
handling the hazardous substance. The e:fect, therefore. should any of the parcels within the Reassessment
Disnicts be affected by a hazardous subst2..r¡ce, will be to reduce the marketability and value of such parcel by
the costs of remedying the condition, because the prospectjve purchaser, upon becoming owner, will become
obligated to remedy the condition just as the seller is.
Further, it is possible that liabilities may arise in the future with respect to a parcel as a result of a
substance cuITently classified as hazardous but which has not been released or the release of which is not
presently threatened., or may arise in the íÜrure as a result of the CUtTent existence on the parcel of a substance
not presently classified as hazardous but which may in the furure be so classified. Further, such liabilities may
arise not simply from the existence of a h=dous substance but from the method in which it is handled. All
of these possibilities could significantly ,,:feet the value of a parcel within the Reassessment Disnicts that is
realizable upon a delinquency.
Cumulative Burden of Parity Taxes, Special Assessments and Development Costs; Direct and
Overlapping Debt
Certain direct and overlapping indebtedness payable from taxes and assessmentS on land within the
Reassessment Disnicts is currently outstanding. See "THE REASSESSMENT DISTRICT - Direct and
Overlapping Debt." Neither the City nor the Authority has any control over the ability of other governmental
entjties to issue indebtedness secured by ad valorem taxes, special taxes or assessments payable from all or a
portion of the property within the Reassessment Disnicts. In additjon, the landowners within the
keassessment Disnicts may, without the consent or knowledge of the City or the Authority, petitjon other
public agencies to issue public indebtedness secured by ad valorem ta.'(es, special taxes or assessments. Any
such ad valorem taxes and special taxes may have a lien on such property on a parity with the lien of the
Reassessments.
Approximately 30% of the Reassessments are on undeveloped land within the Reassessment Disnicts.
Construction has not yet commenced on many residences and other improvements to be constructed on the
undeveloped property. To develop such property, the CUITent or future owners may require financing that
would increase the public and/or private debt for which such property provides security. Such debt and any
additional debt could reduce the ability or willingness of the owners of such property to pay the Reassessments
44
DOCSOc\806564v9'222"SO 125
as they become due. Other fmancial obligations of propeny owners may also affect their ability to pay the
Reassessments.
In addition, as described above, if any additional improvements or other costs are financed through the
issuance of governmental debt payable from ad valorem or special taxes against the parcels \\ithin the
Reassessment Districts, such taxes would have a lien on a parity with that of the Reassessments.
The ability of the City to collect the Reassessment installments or to issue and sell limited obligation
bonds for the Original Assessment Districts, to the extent that additional improvements are required, could be
adversely affected if additional debt is issued within the Reassessment Districts. The imposition of additional
liens on the property within the Reassessment Districts may reduce the ability or willingness of the property
owners to pay the Reassessments and may increase the possibility that foreclosure proceeds \\ill not be
adequate to pay delinquent Reassessment installments. See "THE REASSESSMENT DISTRICTS - Direct
and Overlapping Debt" and "- Estimated Value-to-Lien Ratios Based on Appraisal."
Loss of Tax Exemption
As discussed under the caption "CONCLUDING INFORMATION - Tax Maners", in order to
maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds, the
Authority and the City have covenanted in the Indenture and the Bond Indenrure, respectively, not to take any
action, or fail to take any action, if such action or failure to take such action would adversely affect the
exclusion from gross income of interest on the Bonds under Section 103 of the Internal Revenue Code of 1986,
as amended. Interest on the Bonds could become includable in gross income for purposes of Federal income
taxation retroactive to the date the Bonds were issued, as a result of acts or omissions of the Authority or the
City in violation of the Code. Should such an event of taxability occur, the Bonds are not subject to early
redemption and will remain Outstanding to maturity or until redeemed under the optional or mandatory
redemption provisions of the Indenture.
California Constitution Article XIllC and Article XIIlD
On November 5,1996, the voters of the State approved Proposition 218, the so-called "Right to Vote
on Taxes Act" Proposition 218 added Articles XlllC and XlIlD to the State ConstitutiOI1- wmch contain,
among other things, a number of provisions affecting the ability of the City to levy and collect both existing
and future taxes, assessments, fees and charges.
Article XI1ID requires that, beginning July 1, 1997, the proceedings for the levy of any special
assessment (including, if applicable, any increase in such assessment or any supplemental assessment) must be
conducted in confonnity with the provisions of Section 4 of Article XllID. Section 9525(b) of the California
Streets and Highways Code provides that any reassessment approved and confnmed pursuant to Section 9525
of the California Streets and Highways Code shall not be deemed to be an assessment within the meaning of,
and may be ordered without compliance with the procedural requirements of, Article XIIlD. The
Reassessments were approved and confnmed pursuant to Section 9525 of the California Streets and Highways
Code. Furthermore, the' Original Assessment Districts' assessments (which, except for $2.46 rnillion of such
assessments, are supplanted and superseded by the Reassessments) were levied prior to July 1, 1997.
Therefore, neither the Original Assessment Districts' assessments nor the Reassessments are subject to the
provisions of Section 4 of Article XlIID. In addition, under Section. 10400 of the California Streets and
Highways Code, any challenge (including any constitutional challenge) to the proceedings or the assessment
must be brought within 30 days after the date the assessment was levied.
Article XlIIC removes limitations on the initiative power in matters of local taxes, assessments, fees
and charges. This provision of Article XlllC is not, by its terms, restricted in its application to assessments
which were established or imposed on or after July 1, 1997. In the case of the unpaid Reassessments which are
pledged as security for the payment of the Acquired Obligations, the Act provides a mandatory, starutory duty
45
DOCSOo.806564v9'222"5.0 ¡ 25
of the City and the City Auditor to post installments on account of the unpaid Reassessments to the propeny
ta.x roll of the City each year wlllle any of the Acquired Obligations are outstanding, in amounts equal to the
principal of and interest on the related issue of Acquired Obligations coming due in the succeeding calendar
year. While the matter is not free from doubt, it js likely that a court would hold that the initiative power
cannot be used to reduce or repeal the unpaid Reassessments which are pledged as security for payment of the
Acquired Obligations or to otherwise interfere with performance of the mandatory, statutory duty of the City
and the City Auditor with respect to the unpaid Reassessments wlllch are pledged as security for payment of
such Acquired Obligations.
The interpretation and application of the Articles XIIIC and XllID will ultimately be determined by
the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict
with certainty the outcome of such determination.
No Acceleration
There is no provision in the Indenture or Bond Indenture for acceleration of the payment of principal
of or interest on the Bonds or the Acquired Obligations in the event of default or in the event interest on the
Bonds becomes included in gross income for federal income tax purposes. There is no provision in the Act,
the Indenture or the Bond Indenture for the acceleration of the Reassessments in the event of a payment default
by an owner of a parcel within the Reassessment Disnict or otherwise, or upon any adverse change in the tax
statuS of interest on the Bonds.
Limitations on Remedies
Remedies available to the Owners may be linllted by a variety of factors and may be inadequate to
assure the timely payment of principal of and interest on the Bonds or to preserve the tax-exempt status of
interest on the Bonds.
Bond Counsel has limited its opinion as to the enforceability of the Bonds, the Indenture and the Bond
Indenture to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium, or others similar laws affecting generally the enforcement of creditor's
rights, by equitable principles and by the exercise of judicial discretion. Additionally, the Bonds are not
subject to acceleration in the event of the breach of any covenant or duty under the Indenture. The lack of
availabjlity of cenain remedies or the linlltation of remedies may entail risks of delay in the exercise of. or
jinlltations on or modifications to, the rights of the Owners.
Enforceability of the rights and remedies of the owners of the Bonds, and the obligations incUITed by
the City, may become subject to the federal bankruptcy code and applicable bankruptcy, insolvency,
reorganization, moratorium, or sinlllar laws relating to or affecting the enforcement of creditor's rights
generally, now or hereafter in effect, equity principles wlllch may limit the specific enforcement under State
law of certain remedies, the exercise by the United States of America of the powers delegated to it by the
Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers
inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and
legitimate public purpose and the limitations on remedies against governmental entities in the State. See
"SPECIAL RISK FACTORS - Bankruptcy and Foreclosure Delays," and "- FDIC/Federal Government
Interest in Propenies."
Electricity Crisis
The State is cUITently experiencing a crisis in the supply and pricing of elecnicity. There have been
substantial increases in the costs of elecnicity to retailers and consumers, and periodic elecnical blackouts
have occuITed throughout the State. Further outages are predicted for the sununer months when demand
increases. The elecnical service for the propeny in the Reassessment Disnicts is provided by the Pacific
46
DOCSOC\80656-!v9\22245.0125
Gas & Electric Company. Under the terms of State regulations, the Pacific Gas & Electric Company has not
been able to pass through significant portions of the substantia! increase in the wholesale cost of electricity to
its customers. The Pacific Gas & Electric Company has announced that, as a result, it has experienced a
significant cash crisis and has subsequently declared bankruptcy. The effect of the elecnicity crisis and the
bankruptcy on the Pacific Gas & Electric Company's ability to provide electrical service cannot be predicted.
Furthermore, the effect of the electricity crisis on the local or State economy or on the demand for housing and
industria1/commercial space cannot be predicted. It is possible the electricity crisis could result in a slower rate
of absorption and a reduced value of property within the Reassessment Oisnicts and affect the ability of
property owners to pay Reassessments on their property when due.
47
DOCSOC806564v9'122"5.0125
SPECL-\L RISK FACTORS SPECIFIC TO SERIES B BOl'<'DS
In addition to the risks described under the heading "SPECLA.L RISK FACTORS," there ~-e several
additional risks that are relevant to an investment in the Series B Bonds. The Series B Bonds are subordinate
in right of payment to the Series A Bonds. The Series B Bonds are not rated and are not insured by the
Series A Bond Insurer. For this reason, investments in the Series B Bonds involve a high degree of risk and
are not appropriate for all investors.
Subordination of Series B Bonds
The Series B Bonds are subordinate to the Series A Bonds in right of payment. Revenues will be
available to pay obligations on the Series B Bonds only after all payments and deposits in respect of the
Series A Bonds have been made as set font herein and in the Indenture. In the event of delinquencies in the
payment of Reassessments which exceed the expected amount of debt service coverage from the Revenues,
there may not be sufficient Revenues available to pay interest or principal due on any or all of the Series B
Bonds then Outstanding.
Limited Secondary Market
As stated herein, investment in the Series B Bonds poses certain economic risks which I?ZY not be
appropriate for certain investors, and only persons with substantial fmancial resources who understa.""1¿ the risk
of investment in the Series B Bonds should consider such investment. There can be no guarante~ :hat there
will be a secondary market for purchase or sale of the Series B Bonds or, if a secondary market exists, that the
Series B Bonds can or could be sold for any particular price. From time to time there may be no market for the
Series B Bonds, depending upon prevailing market conditions, the fmancial condition or market positions of
f!TIllS who may make the secondary market, the fmancial condition and results .of operations of the O"'"I1ers of
propeny located within the boundaries of the Reassessment Districts, and the extent of the development of
propeny within the Reassessment Districts.
No Rating of Series B Bonrls
The Series B Bonds are not rated by any rating agency, and the Authority does not presently
intend to seek any rating of the Series B Bonds nor does the Authority anticipate that the Series B Bonds
would qualify for an investment upgrade rating.
No Insurance; Remedies Controlled by Series A Bond Insurer
The Financial Guaranty Insurance Policy does not apply to the Series B Bonds.
The Indenture provides that, upon the occurrence of a default with respect to the Series B Bonds, the
Trustee may pursue any available remedy at law or in equity to enforce the payment of the Series B Bonds;
provided, however, that the Trustee shall take no action that would impair the receipt of Revenues necessary to
pay the Series A Bonds and any Additional Bonds unless the Owners of a majority in aggregate principal
amount of the Outstanding Series A Bonds and Additional Bonds and the Series A Bond Insurer shall have
consented to such action. Given this provision, so long as the Series A Bonds are outstanding, the exercise of
remedies for any default under the Indenture will be controlled by the Series A Bond Insurer and not by the
Owners of the Series B Bonds.
48
DOCSOO806564v9\22245.0 125
THE AUTHORITY
The Chula Vista Public Financing Authority was established pursuant to a Joint Exercise of Powers
Agreement dated as of April 4, 1995, by and between the City and the Redevelopment Agency of the City of
Chula Vista. The City Council of the City is appointed as the Governing Board of the Authority. The
Authority has acted as a conduit issuer for the City for a variety of financings.
THE AUTHORITY IS NOT OBLIGATED TO PAY THE PRINCIPAL OF, PREMIUM (IF ANY)
OR INTEREST ON TO THE BONDS, EXCEPT FROM REVENUES AND SUBORDINATED REVENUES
RECEIVED BY THE AUTHORITY. THE CITY HAS NO LL>\BILITY WITH RESPECT TO THE
PAYMENT OF THE BONDS, AND NEITHER THE FAITH AND CREDIT NOR TIlE TAXING POWER
OF THE STATE OF CALIFORNIA OR THE CITY IS PLEDGED TO THE PAYMTh"T OF THE BONDS.
THE AUTHORITY HAS NO TAXING POWER.
The Authority haS issued its obligations other than the Bonds, which other obligations are and will be
secured by instruments separate and apm from the Indenture and the Bonds. The holders of such obligations
of the Authority have no claim on the security of the Bonds and the owners of the Bonds will have no claim on
the security of such other obligations issued by the Authority.
THE CITY
The City of Chula Vista is located on San Diego Bay in Southern California, 8 miles south of the City
of San Diego and ï miles north of the Mexico border, in the area generally known as "South Bay." Chula
Vista's city limits cover approximately 50 square miles. Chula Vista was incorporated March 1 ï, 1911 and
became a chartered city in 1949. For more infonnation regarding the City, see APPENTIIX A -
"INFOR..c\.1ATION REGARDING THE CITY OF CHULA VISTA."
CONCLUDING INFORMATION
Underwriting
The Bonds are being purchased through negotiation by Stone & Youngberg LLC (the "Underwriter").
The Underwriter has agreed to purchase the Series A Bonds at a discount of $ from the offering
prices reflected on the inside cover hereof and to purchase the Series B Bonds at a discount of
$ from the offering prices reflected on the inside cover hereof. Simultaneously with the
purchase of the Bonds by the Underwriter, the Authority has agreed to purchase the Acquired Obligations from
the City. The Underwriter's obligation to purchase the Bonds is contingent upon the Authority's purchase of
the Acquired Obligations, the approval of certain legal matters by counsel and certain other conditions.
The Underwriter may offer and sell the Bonds to certain dealers and others at prices lower than the
public offering prices set forth on the inside cover hereof. The offering prices of the Bonds may be changed
from time to time by the Underwriter.
Financial Advisor
Sutro & Co. Incorporated, Los Angeles, California, served as financial advisor to the City with respect
to the sale of the Bonds. Sutro & Co. Incorporated will receive compensation contingent upon the sale and
delivery of the Bonds.
Legal Opinion; Legal Matters
The legality of the Bonds and certain other legal matters are subject to the approval of Best Best &
Krieger LLP, Bond Counsel. Bond Counsel will render an opinion with respect to the validity and
49
ooC500806564v9'22245.0 115
enforceability of the Series A Bonds and the Indenture and an opinion with respect to validity and
enforceability of the Series B Bonds, and a copy of the applicable opinion will accompany each Bond. Such
opinions will be subject to the various assumptions, exceptions and limitations stated therein. See Appendix C
- "Proposed Fonn of Bond Counsel Opinions." Certain legal matters will be passed upon for the Authority
and the City by the office of County Counsel, and for the Underwriter by Stradling Yocca Carlson & Rauth. a
Professional COIporation, Newport Beach, California. Payment of the fees and expenses of Bond Counsel,
Underwriter's Counsel and the Trustee is contingent upon the sale and delivery of the Bonds. From time to
time, Underwriter's Counsel represents the City On matters unrelated to the Bonds.
Tax Matters
In the opinion of Best Best & Krieger LLP, San Diego, California, Bond Counsel, under existing
statutes, regulations, rules and court decisions, interest on the Bonds is excluded from gross income for federal
income tax purposes and is exempt from personal income taxation imposed by the State of California.
Bond Counsel is further of the opinion that interest on the Bonds is not a specific preference item for
purposes of the alternative minimum tax provisions of the Internal Revenue Code of 1986, as amended (the
"Code"). However, with respect to the Bonds owned by corporations (as defmed for federal income tax
purposes), interest on the Bonds may be included in adjusted current earnings, a portion of which may increase
the alternative minimum taxable income of such corporations. In addition, although interest on the Bonds is
excluded from gross income for federal income la.X purposes. the accrual or receipt of interest on the Bonds
and the ownership of the Bonds may otherwise affect the federal income tax liability of cenain persons or
entities. Bond Counsel expresses no opinion regarding any such consequences.
The Code setS forth certain requirementS which must be met subsequent to the issuance and delivery
of the Bonds for interest paid with respect thereto to be and remain exempt from federal income la.xation.
Noncompliance with such requirementS rnight cause the interest paid on the Bonds to be subject to federal
income taxation retroactive to the date of issue and the Bonds. These requirementS include, but are not limited
to, provisions which prescribe yield and other limits within which the proceeds of the Bonds and other
amounts are to be invested and require that cenain investment eamings on the foregoing must be rebated On a
periodic basis to the Treasury Department of the United States. Pursuant to the Bond Indenture, the City has
covenanted to comply with all such requirementS.
In rendering such opinions, Bond Counsel is assuming that the City will comply with its covenantS in
the Bond Indenture to comply with the requirementS of the Code. Noncompliance with the Code might cause
the interest on the Bonds to be subject to federal income taxation retroactive to the date of issuance and
delivery of the Bonds.
No Litigation
There is no action, suit, or proceeding pending or, to the best knowledge of the City and the Authority,
threatened at the present time restrallting or enjoining the delivery of the Bonds or in any way contesting or
affecting the validity of the Bonds or any proceedings of the City or the Authority taken with respect to the
execution or delivery thereof. A no litigation opinion rendered by the City Counsel will be required to be
delivered to the Underwriter simultaneously with the delivery of the Bonds.
Verification of Mathematical Computations
[Verification Agent], an independent finn of certified public accountants, will deliver to the City its
reports indicating that it has examined, in accordance with standards established by the American Institute of
Certified Public Accountants, the infonnation and assertions provided by the City and its representatives.
Included in the scope of its examination will be a verification of the mathematical accuracy of the
mathematical computations of the adequacy of the cash and the maturing principal amounts and the interest on
50
DOCSOC\806564v9':2245.0 ¡ 25
the direct noncallable obligations of the United States of America deposited with the Escrow Agent to pay the
interest, principal and redemption price coming due on the Refunded Bonds on and prior to their redemption
date as described in "THE PLA.N OF FINA.~CE."
Ratings of Series A Bonds
Moody's Investors Service and Standard & Poor's Credit Markets Services, a di,ision of the
McGraw-Hill Companies, Inc. have assigned ratings of "Aaa" and "AA1\," respectively, to the Series A
Bonds, with the understanding that, upon delivery of the Series A Bonds, the Series A Financial Guaranty
Insurance Policy will be issued by [Insurer]. Such ratings reflect only the views of such organizations and any
desired explanation of the significance of such ratings should be obtained from the rating agency furnishing the
same at the fOllowing addresses: Moody's Investors Service, Inc., 99 Church Street, New York. New York
10007 and Standard & Poor's Credit Markets Services, 55 Water Street, New York., New York 10041.
Generally, a rating agency bases its rating on the information and materials furnished to it and on
investigations, studies and assumptions of its own. There is no assurance such ratings will continue for any
given period of time or that such ratings will not be revised downward or withdrawn entirely by the rating
agencies, if in the judgment of such rating agencies, circumstances so warrant. Any such downward revision
or withdrawal of such ratings may have an adverse effect on the market price of the Series A Bonds.
Continuing Disclosure
The Authority has determined that no financial or operating data concemjng the Authority (other than
the balance in cerTain funds and accounts established under the Indenture) is material to any áecision to
purchase, hold or sell the Bonds. and the Authority will not provide any such information. Tne City has
undenaken all responsibilities for any continuing disclosure to Bond Owners as described below, and the
Authority shall have no liability to the Owners of the Bonds or any other person with respect to such
djsclosure.
The City has covenanted for the benefit of holders and beneficial owners of the Bonds (1) to provide
cerTain fmancial information and operating data (the "~<\nnual ReporT") relating to the City and the property in
the Reassessment District not later than April 1 after the end of the City's Fiscal Year, commencing with the
report for the 2000-2001 Fiscal Year, and (2) to provide notices of the occurrence of certain enumerated
events, if material. The Annual Report will be filed by MuniFinancial, as dissemination agent, on behalf of the
City, with each Nationally Recognized Municipal Securities Information Repository and with each State
Repository, if any. The notices of material events will be filed by MuniFinancial, as dissemination agent, on
behalf of the City with the Municipal Securities Rulemaking Board and with each State Repository, if any.
The specific nature of the information to be contained in the Annual Report or the notices of material events is
set forth in the Continuing Disclosure Agreement. See Appendix G - "Form of Continuing Disclosure
Agreement." These covenants have been made in order to assist the Underwriter in complying 'With S.E.C.
Rule l5c2-12(b)(5) (the "Rule").
The City has never failed to comply in all material respects with any previous underTakings with
regard to Rule l5c2-l2 to provide annual reports or notices of material events. The full text of the Continuing
Disclosure Agreement is set forth in Appendix D.
Miscellaneous
All of the preceding summaries of the Indenture, the Bond Indenture, applicable legislation,
agreements and other documents are made subject to the provisions of such documents and legislation and do
not purport to be complete statements of any or all of such provisions. Reference is hereby made to such
documents on file with the City for further information in connection therewith.
This Official Statement does not constitute a contract with the purchasers of the Bonds.
51
DOCSOC806564v91222>5.0 125
Any statements made in this Official Statement involving matters of opinion or of estimates, whether
or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made
that any of the estimates will be realized.
The execution and delivery of this Official Statement have been authorized by the members of the
Board of Directors of the Authority and by the members of the City Council.
CHULA VISTA PUBLIC FlJ'ITANCING
AUTHORITY
By:
Title:
CITY OF CHULA vìSTA
By:
Title:
52
DOCSOC\80656-1v9'22è.s.Ol è5
APPEl\l)L"X A
L'IFOR¡\1ATION REGARDING THE CITY OF CHULA VISTA
GEì'<"ERAL INFOR1'\1ATION
This appendÜ sets forth general information about the City of Chula Vista ("Chula Vista ") including
information with respect to its finances. The following information concerning Chula Vista, the County of San
Diego (the "County") and the State of California (the "State ") is included only for general background
purposes.
General Description
Chula Vista is located on San Diego Bay in Southern California, 8 rniles south of San Diego and 7
miles north of the Mexico border, in the area generally known as "South B!'y." Chula Vista's city limits cover
approximately 50 square miles. Chula Vista was incOlporated March 17, 1911 and became a chartered city in
1949. Chula Vista operates under a Council-Manager fonn of government and provides the following
services: public safety, community se,vices, engineering services, planning services, public works, general
administrative services and capital improvements. With a January 2000 estimated population of lï4,300,
Chula Vista is the second largest city in the County.
Population
The historic population ofChula Vista. the County and the State is shov,'D below.
City of Chula Vista, County of San Diego and State of California
Population Estimates
Year Cirv ofChula Vista CountY of San Diego State of California
1995 149.800 2,658,600 31,910,000
1996 152.700 2,682,100 32.223,000
1997 156,.100 2,ï29.100 32,670,000
1998 162.100 2,795.800 33,226,000
1999 16Î.IOO 2,855,900 33,766,000
2000 IÎ.UOO 2,911,500 34,336,000
Source: California State Department of Finance
Building Activity
Residential building activity for the past five calendar years for Chula Vista is shown in the following
tables.
City ofChula Vista
New Housing Units Building Permits
1996 1997 1998 1999 2000
Single Family Units 871 927 1,180 1,796 1,776
Multjfamily Units 77 123 166 750 864
Total Units 948 1,050 1,346 2,546 2,640
Source: Construction Industry Research Board
A-I
DOcsoa806564v9'222"50125
--. City ofChula Vista
Building Permit Valuations
(Dollar Volume in OOO's)
1996 1997 ]998 ]999 2000
Residential
New Single Family S]45,99] S155,849 $214,986 $307,653 $319,086
New Multifamily 7,093 11,075 11,452 53,470 74,634
Res. Alt. & Adds 5.744 6,439 -.U2l 5.085 4.863
Total Residential 158,829 173,364 231,829 366,209 398,583
Nonresidential
New Commercial S 747 S 10,954 S 17,432 $ ] 1,213 17,916
New Indusnial 142 0 5,581 7,909 17,418
New Other(l) 2,165 6,104 11,483 5.840 17,890
Alters. & Adds. 7.868 9.036 12.783 13.552 10.527
Total Non-Residential 10,923 26.095 47.280 38,516 63.752
Total All Building lli2.lli S199A59 5279.11 0 S404.725 5462.335
III Includes churches and religious buildmgs. hospitals and instJrutJonal buildmgs. schools and educational buildings,
residenTial garages, public works and u¡iiities buildings and no-residential alteraTions and additIOns.
Note: "Total All Building" is the sum of ResidentJal and NonteS1dential Building Permit Valuations. Totals may not add to
sums because of independent rounding.
Source: ConStruction Industry Research Board
Employment
The following table summarizes the labor force, employment and unemployment figures over the
period 1996 through 2000 for Chu1a Vista, the County, the State and the United States.
A-2
DOCSOC\806564v91222.5.0 125
Chula Vista, San Diego County, State of California and United States
Labor Force, Employment and Unemployment Yearly Average
Civilian Civilian Civilian Civilian
Year and Area Labor Force Emplovment Unemplovment Unemplovment Rate
1996
Chula Vista 65,090 61,470 3,620 5.6%
San Diego County 1,241,300 1,175,900 65,400 5.3%
California 15,511,600 14,391,500 1,120,100 7.2%
United States 133,943,000 126,708,000 7,236,000 5.4%
1997
Chuia Vista 67,340 64,340 3,010 4.5%
San Diego County 1,285,100 1,230.800 54.300 4.2%
California 15,947,300 14,942,500 1,004,700 6.3%
United States(l) 136,297,000 129,558,000 6,739,000 5.0%
1998
Chula Vista 69.200 66,630 2,570 3.7%
San Diego County 1,321,000 ],274,600 46,400 3.5%
California 16.323.900 15,355,600 968,200 5.9%
United States(l! 137,673,000 131,463,000 6,210,000 4.5%
1999
Chula Vista 71,300 68,980 2,320 3.3%
San Diego County 1.361,600 1.319,600 42,000 3.1%
California 16.585,900 15,72l.ï00 864,200 5.2%
United States'!) 139.368.000 133.488.000 5,580,000 4.2%
2000
Chula ViSta ï3.570 71,240 2.330 3.2%'
San Diego County 1,404,100 1.362.100 42.000 3.0%
California 17.090.800 16.245,600 845.200 4.9%
United States'" 140,863,000 135,208,000 5,655,000 4.0%
(I) Not srrictly comparable with data for prior years.
'" Beginning in January 2000, data are not srrictly comparable with data for 1999 and earlier years because of revisions in the
populaTion controls used in the household survey.
Note: Figures may not add due to rounding. Data are not seasonally adjuSted. March 2000 benchmark.
Source: California Employment Development Deparnnent and U.S. Bureau of Labor.
San Diego Metropo1itan Statistical Area ("MSA"), which includes Chula Vista, civi1ian labor force
and wage and saJary employment figures for caJendar years 1996 through 2000 are shown in the following
table. These figures are county-wide statistics and may not necessarily accurately reflect employment trends in
Chula Vista.
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DOCSOC\806564v9'2èè"5.0 I è5
San Diego :\ISA
Civilian Labor Force, Employment and Unemployment
Annual Averages, March 2000 Benchmark
1996 1997 1998 1999 2000
Civilian Labor Force") 1,241,200 1,285,000 ],321,000 1,361,600 1.404,900
Employment ].]75,000 1,230,800 1,274,600 1,3]9,600 ],362,900
Unemployment 65,300 54,300 46,400 42,000 42,000
Unemployment Rate 5.3% 4.2% 3,5% 3.1% 3.0%
Wage & Salary Employment")
Total, All Industries 1,017,200 1,065,000 1,116,100 1,164,100 1,208,300
Agricultural, Forestry, and 11,000 10.800 10,600 11,200 11,900
Fisheries
Non-Agricultural 1,006,200 1.054,200 1,105,500 ],IS2.900 1,196,500
Mining 400 400 300 300 400
Construction 45,500 53.000 61,800 67,000 70,400
Manufacturing 117,500 123,100 127,600 128,100 ]29,700
Transportation & public utilities 38,300 41.600 47,000 51,300 50,900
\\Tholesale trade 42,700 45.600 48,300 50,300 52.300
Retail trade 193,200 198AOO 201,100 206.1 00 215.500
Finance, insurance & real estate 57,400 60.900 65.300 68,700 69.800
Services 321,200 339,300 359.600 381,700 400.600
Government 190,100 192.000 194,500 199.300 206.800
(11 Based on place of residence,
12) Based on place of work.
Source: California Emp10)ment Developmeot Deparrmem
.-\-4
DOCSOC'8065b-1v9'22245.0125
The followmg listings set forth Chula Vista's Major Employers by Busmess IndustriaVOffice,
Government and Retail based mdustries:
Chula Vista's Major Employers
(Businesses with 150 or more Employees)
Business IndustriaUOffice
No. of
Name TvPe of Business EmDlovees
Bf Goodtich Aerospace Aerosrrucrures Group Aerospace Manufacrurer 2.075
Sharp Chula Vista Medical Center Hospital 800
Scripps Memotial Hospital Hospital 650
White Water Canyon Amusement Park 500
Ametican fashion Inc. Clothing Manufacturer 500
Sunrise Medical Inc. Medical Offices 450
Eco Building Systems Modular Building Manufacturer 210
Ametican Manufactuting Concepts Clothing Manufacturer 200
Coastal Embroidery Specialty Manufacturer 200
Sharp Rees-Stealy Medical Group Medical Offices 200
fredeticka Manor Care Center Day Care Service 200
MDllnterviewing Services Inc. Management Consulting Service 200
Pacific Waste Services Inc. Sanitary Waste Service 200
Hyspan PreciSion Products Inc. Fabncated Metal Manufacturer 200
Raytheon Systems Electrical Manufacrurer 200
fredeticka Manor Retirement Community Elderly Care Facility I Îl
South Bay Community Services Social Service Agency 160
Crower Cams & EqUIpment Inc. Moror Vehicle Pan Manufacrurer 160
Navcare Hospital 150
Community Health Group . Medical Offices ISO
Government
No. of
Name TvPe of Business Emulovees
United States Border Patrol Government Agency 2.ÎOO
Southwestern Community College Community College 1.100
City of Chula Vista Municipal Government 825
Department of Social Services Social Service Agency 300
Sweetwater Union High School DIstrict Secondary School District 260
United States Postal Service Government Agency ISO
Feaster Edison Charter School Elementary School ISO
Chula Vista Elementary School District Elementary School District ISO
Retail
No. of
Name TvPe of Business Emolovees
Sears Department Store 360
Price Costco General Merchandise 250
Mace's Department Store 250
Big Kmart General Merchandise 200
Fuller Honda Automotive Retailer 200
Target Stores General Merchandise 180
J C Penney Department Store ISO
Vons Grocery Store 150
Fuller Ford Automotive Retailer ISO
Source: City of Chula Vista
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DOCSOC\806564v91:!22'¡S.O 125
Effective Buying Income
"Effective Buying Income" is defined as personal income less personal tax and nontax payments. a
number often referred to as "disposable" or "after-tax" income. Personal income is the aggregate of wages and
salaries, other than labor-related income (such as employer contributions to private pension funds), proprietor's
income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings).
dividends paid by corporations, interest income from all sources and transfer payments (such as pensions and
welfare assistance). Deducted from this total are personal taxes (federal, state and local, nontax payments,
fmes, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. govenunent
definitions, the resultant figure is commonly known as "disposable personal income."
Due to changes implemented in 1996 in the method of calculating Effective Buying Income, prior
years are not directly comparable with statistics for 1996 and thereafter. The following table summarizes the
Effective Buying Income for Chula Vista, the County and the State for the period 1995 through 1999.
Chula Vista. San Diego County and California
Effective Buying Income!!)
Median
Effective Per Capita Household Percent of
Buying Effective Effective Households
Income'" Buvine Income Buvino Income over 550,000
1996
Chula Vista is 2.092.373 513.201 S32,128 26,9
San Diego Coun')' 40,913.543 14,975 34,445 29,9
California 492.516.991 15.068 35.216 31.7
1997
Chula Vista S 2.217,170 513.762 533.267 28,9
San Diego Coun')' 43,2]2,824 15.619 35,725 31.7
California 524,439,600 15.797 36,483 33.5
]998
Chula Vista S 2,408,888 514,187 533,91] 30.1
San Diego Coun')' 46,056,143 16,101 36,296 32.8
California 551.999,317 16.299 37,091 34,6
1999
Chula Vista 5 2,629,899 515,776 537,725 35.4
San Diego County 49,907,828 17,270' 39,213 37.4
California 590,376,663 17,245 39,492 38.3
(I) Not comparable with prior years, Effective Buying Income is now based on money income (which does not take into account
sale of property, taxes and social security paid, receipt offoOO stamps, etc.) versus personal income,
(:) Dollars in thousands.
Source: "Survey of Buying Power," Sales & Marketing Management Magazine, dated 1996, 1997, 1998, 1999 and 2000.
Sales Taxes
The following table shows taxable transactions in Chula Vista by type of business during calendar
years 1995 through the flfSt quarter of 2000. As indicated below. total retail sales for Chula Vista in 1996
increased by approximately 6.5% over the 1995 level, in 1997 increased by approximately 7.1% over the 1996
level, in 1998 increased by approximately 8.8% over the 1997 level, and in 1999 increased approximately
10.3% overthe 1998 level.
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OOCSOC\806564v91122.S.0 125
A summary of historic taxoble transactions for Chula Vista is shown in the following table.
City ofChula Vista
Taxable Transactions
(Dollars in thousands)
Retail Stores Total Outlets
Calendar Year Pewits Taxable Transactions Permits Taxable Transactions
1995 1,553 $ 928,341 3,364 $1,063,911
1996 1,594 987,211 3,401 1,133,092
1997 1,643 1,042,195 3,507 1,213,423
1998 1,64-1 1,120,534 3,535 1,320,195
1999 1,738 1,240,992 3,619 1,456,388
2000(1) 1,781 309,9S3 3,640 357,416
(1) figures are as of the FirSt Quaner of1000.
Source: State Board of Equalization
Education
Pubhc educational instruction from kindergarten through high school is provided by the Chula Vista
Elementary School District and Swe~tWater Union High School District. These districts administer twenty-six
elementary schools, nine junior high schools and eight senior high schools. Southwestern College, a two year
Community College. has an enrollment of more than 15,000. There are also four adult education schools and
twelve private schools. There are seven universities or colleges within 30 minutes commuting distance from
Chula Vista in the San Diego Mecropolitan Nea. Chula Vista has proposed a University of Cahfomia campus
in Chu1a Vista, to be located on a 400 acre site adjoining the Olympic Training Center.
Community Facilities
There are two acute-care hospitals, two psychiaaic hospjtals and three convalescent hospitals, and
more than 400 medical doctors and allied professionals in Chula Vista.
There are two daily, one weekly and one semi-weekly newspapers published and circulated in Chula
Vista. Chula Vista has one main public library and two branch libraries.
Recreationa1 faci1ities within or near Chula Vista include twenty-four parks, four community centers,
six "tot lots," two ball fields, twenty-eight tennis courts, three golf courses, four municipal swimming pools,
two gymnasiums and boat launching facilities. Chu1a Vista's bayfront area contains a marina which houses
552 boats and miles of public beaches. Chula Vista also provides many trails for bicycling, hiking and
joggmg.
Chula Vista is also the home of the United States Olympic Training Center. This is the third such
training center in the nation and the only year round training facility. The center is located on a ISO-acre site
donated by EastLake Developmem Company adjacent to the Otay Lake reservoir.
Chula Vista has more than sixty churches and near1y 100 service, fraternal and civic organizations.
Transportation
U.S, Highways 5 (along the coast) and 805 (inland) provide full freeway access from Chula Vista
north to San Diego and south to the Mexican boarder. Commuter rail service is provided by the San Diego
Trolley, a light rail system started in 1981 and eleven bus routes serve Chula Vista.
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OOCSOC'.806564v9\12245 0 ¡ 25
Daily bus connections serve Chula Vista, and Soumem Pacific Railway and San Diego's Lindbergh
International Airport are fifteen minutes to me north of Chula Vista.
Utilities
Electric power and natural gas are provided by San Diego Gas and Electric. SBC Communications
provides telephone service to me area. Otay Water District and Sweetwater Water District provide water
service and Chula Vista provides sewer service.
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DOCSOC\806564v9\122-!S.OI 25
APPEi'iDLX B
SUMMARY OF BOND DOCUMENTS
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DOCSOC\806564v9\222.5.0 125
APPENDLX C
FOR-\! OF BOl'<"D COUNSEL OPll"IONS
[To Come]
c-!
DOCSOC\8065Mv9\1::45 0 1:5
APPEl'<'DLX D
FORM OF CONTI1'I'UING DISCLOSURE AGREEMENT
This Continuing Disclosure Agreement dated as of August I, 2001 (the "'Disclosure
Agreement") is executed and entered into among the City of Chula Vista (the "'City"), the Chula
Vista Public Financing Authority (the "Issuer") and MuniFinancial as dissemination agent (the
"Dissemination Agent"), in connection with the issuance and delivery by the Issuer of its
$ * Refunding Revenue Bonds, Series A Senior Lien Bonds, and $ * Refunding
Revenue Bonds, Series B Subordinate Lien Bonds (the "Bonds"). The Bonds are being issued
pursuant to a, Indenture of Trust (the "Indenture") dated as of August 1, 2001 between the Issuer and
U.S. Bank Trust National Association, as trustee (the "Trustee"). The City covenants as follows:
SECTION 1. Purpose of the Disclosure Agreement. This Disclosure Agreement is being
executed and delivered by the City, acting as the agent of the Issuer, for the benefit of the Owners
and Beneficial Owners of the Bonds and in order to assist the Participating Undenvriter in complying
with the Rule (as defined below).
SECTION 2. Definitions. In addition to the definitions set forth in the Indenrure, which
apply to any capitalized term used in this Disclosure Agreement unless othen,.ise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as
described in, Sections 3 and 4 of this Disclosure Agreement.
"Beneficial Owner" shall mean any person which (a) has the power, directly or indirect1y, to
vote or consent with respect to, or to dispose of ownership of. any Bonds (including persons holding
Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any
Bonds for federal income purposes.
"'Disclosure Representative" shall mean the Deputy City Manager/Director of Finance of the
Cjty, or his or her designee, or such other officer or employee as the City shall designate in 'WTiting to
the Dissemination Agent from time to time.
"Dissemination Agent" shall mean, initially, U.S. Bank Trust National Association, or any
successor Dissemination Agent designed in writing by the City which has filed with the then current
Dissemination Agent a written acceptance of such designation.
"District" shall mean Reassessment District No. 2001-1 of the City of Chula Vista and
Reassessment District No. 2001-2 of the City ofChula Vista.
"Listed Events" shall mean any of the events listed in Section Sea) of this Disclosure
Agreement.
"National Repository" shall mean any Nationally Recognized Municipal Securities
Information Repository for purposes of the Rule. Currently, the National Repositories are the four
entities approved by the Securities and Exchange Commission, a current list of which is maintained
on the internet at htt1J://www.sec.Q:ov/consumer/nrmsir.hnn.
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DOCSOC\806564v9\222.50 125
"Official Statement" means the Official Statement for the Bonds dated _.2001,
including those portions of the Official Statement.
"Participating Underwriter" shall mean Stone & Youngberg LLC and any other original
underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds.
"Repository" shall mean each National Repository and each State Repository.
"Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as the same may be amended from time to time.
"State Repository" shall mean any public or private repository or entity designated by the
State of California as a state repository for the pUtpose of the Rule and recognized as.such by the
Securities and Exchange Commission. As of the date of this Disclosure Agreement, there is no State
Repository.
"Tax-exempt" shall mean that interest on the Bonds is excluded from gross income for
federal income tax purposes, whether or not such interest is includable as an item of tax preferences
or otherwise includable directly or indirectly for purposes of calculating any other tax liability,
including any alternative minimum tax or environmental tax.
SECTION 3. Provision of Annual ReDorts.
(a) The City shall, or shall cause the Dissemination Agent by written direction to such
Dissemination Agent to, not later than the March 1 after the end of the Issuer's fiscal year (which
currently ends on June 30), commencing with the report for the fiscal year ending June 30,2001,
provide to each Repository an Annual Report which is consistent with the requirements of Section 4
of this Disclosure Agreement. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may include by reference other infonnation as
provided in Section 4 of this Disclosure Agreement: provided that the audited financial statements of
the Issuer, if any are prepared, may be submitted separately from and later than the balance of the
Annual Report if they are not available by the date required above for the filing of the Annual
Report.
An Annual Report shall be provided at least annually notwithstanding any fiscal year
longer than 12 calendar months. The Issuer's fiscal year is currently effective from July 1 to the
immediately succeeding June 30 of the following year. The City will promptly notify each
Repository or the Municipal Securities Rulemaking Board, and in either case the Dissemination
Agent and the Participating Underwriter of a change in the Issuer's fiscal year dates.
(b) So long as the Dissemination Agent is an entity other than the City, then the
provisions of this Section 3(b) shall apply. Not later than fifteen (15) Business Days prior to the date
specified in subsection (a) for providing the Annual Report to Repositories and the Participating
Underwriter, the City shall provide the Annual Report to the Dissemination Agent. Ifby fifteen (15)
Business Days prior to such date the Dissemination Agent has not received a copy of the Annual
Report, the Dissemination Agent shall contact the City to detennine if the City will be filing the
Annual Report in compliance with subsection (a). The City shall provide a written certification with
each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report
constitUtes the Annual Report required to be furnished by it hereunder. If the Dissemination Agent is
0-2
DOCSOC80656-!v9'12245.0125
an entity other than the City, it may conc1usively rely upon such certification of the City and shall
have no duty or obligation to review such Annual Report.
(c) If the City is the Dissemination Agent and the City is unable to provide to the
Repositories and the Participating UndemTiter an Annual Report by the date required in subsection
(a), the City shall send a notice to the Municipal Securities Rulemakjng Board, the State Repository,
if any, the Participating Underwriter and the Dissemination Agent in substantially the form attached
to this Disclosure Agreement as Exhibit A. If the Dissemination Agent is other than the City and if
the Dissemination Agent is unable to verify that an Annual Report has been provided to Repositories
and the Participating Underwriter by the date required in subsection (a), the Dissemination Agent
shall send a notice to each Repository and the Participating Underwriter, in substantially the form
attached as Exhibit A.
(d) The Dissemination Agent, if other than the City, shall: '
(i) determine each year prior to the date for providing the Annual Report the
name and address of each National Repository and each State Repository, if any; and
(ii) promptly after receipt of the Annual Report, file a report with the City and the
Issuer certifying that the Annual Report has been provided pursuant to this Disclosure
Agreement, stating the date it was provided and listing all the Repositories to which it was
provided.
SECTION 4. Content of Annual Reports. The Annual Report shaH contain or include by
reference:
(a) Financial Statements. Tne audited financial statements of the Issuer, if any have been
prepared, for the most recent fiscal year of the Issuer then ended. If the audited financial statements
are being prepared and are not available by the time the Annual Report is required to be filed, the
Annual Report shall contain any unaudited financial statements of the Issuer in a format similar to
the audited financial statements, and the audited financial statements shaH be filed in the same
manner as the Annual Report when they become available. Audited financial statements, if any, of
the Issuer shaH be audited by such auditor as shall then be required or permitted by State law or the
Indenture. Audited financial statements, if prepared by the Issuer, shaH be prepared in accordance
with generaHy accepted accounting principles as prescribed for governmental units by the
Governmental Accounting Standards Board; provided, however, that the Issuer may from time to
time, if required by federal or state legal requirements, modify the basis upon which its financial
statements are prepared. In the event that the Issuer shaH modify the basis upon which its financial
statements are prepared, the Issuer shaH provide a notice of such modification to each Repository,
including a reference to the specific federal or state law or regulation specificaHy describing the legal
requirements for the change in accounting basis.
(b) Financial and ()Peratim! Data. The Annual Report shaH contain or incorporate by
reference the foHowing information:
(i) the principal amount of Bonds outstanding as of September 2 preceding the
filing of the Annual Report;
0-3
DOCSOC\806564v9'12245.0125
(ii) the balance in each fund under the Indenture as of the September :>. preceding
the filing of the Annual Report;
(iii) an update of infonnation in Tables 2, 3 (provided that such Tables need not
be updated once developed parcels within the Reassessment District secure 90% of the
Reassessments levied on parcels with that Reassessment District), 4 (provided that such
Table need not be updated once parcels with assessed value-to-Reassessment lien ratios of
less than 7:1 secure less than IO% of the total Reassessments), 5 (provided that such Table
need not be updated once top ten properties based on total Reassessment secure less than
20% of the total Reassessments) and 8 (reconfigured to show delinquencies by Reassessment
District) of the Official Statement based on infonnation available from the 1= equalized
assessment roll and the last levy of Reassessments preceding the date of the Annual Report;
provided, however, that Table 8 shall be reconfigured to state a single delinquency rate for
each District beginning with Fiscal Year 2001-2002; and provided that the info=ation under
Tables 2 and 3 under the "Developed" and "Undeveloped" categories may be stated without
regard to the "Land Use" subcategories.
(iv) a discussion of the status of any foreclosure proceedings commenced against
parcels in the District; and
(v) any infonnation not already included under (i) through (iv) above that the
Authority is required to file in its annual reports to the California Debt and Investment
Advisory Commission pursuant to the provisions of the Marks-Roos Local Bond Pooling
Act. This requirement may be satisfied by attaching a copy of such report to the Annual
Report.
(c) Any or all of the items listed in (a) or (b) above may be included by speciñc reference
to other documents, including official statements of debt issues of the Issuer, the Distric[, or related
public entities, which have been submitted to each of the Repositories or the Securities and Exchange
Commission. If the document included by reference is a final official statement, it mus, be available
from the Municipal Securities Rulemaking Board. The City shall clearly identify each such other
document so included by reference.
SECTION 5. Reportin~ of Sjgnificant Events.
(a) Pursuant to the provisions of this Section 5, the City shall give, or cause the
Dissemination Agent to give, notice of the occurrence of any of the following events v.ith respect to
the Bonds, if material:
(1) principal and interest payment delinquencies.
(2) non-payment related defaults.
(3) unscheduled draws on any reserve fund reflecting financial difficulties.
(4) unscheduled draws on any credit enhancements reflecting financial
difficulties.
(5) substitution of credit or liquidity providers, or their failure to perfonn.
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DOCSOC\80656-1v9\22245 0125
(6) adverse tax opinions or events adversely affecting the tax-exempt starns of the
Bonds.
(7) modifications to the rights of Bond Owners.
(8) unscheduled redemption of any Bond.
(9) defeasances.
(10) any release, substitution, or sale of property securing repayment of the Bonds.
(11) rating changes.
(b) \Vhenever the City obtains knowledge of the occurrence of a Listed Event, the City
shall as soon as possible determine if such event would be material under applicable federal
securities laws.
(c) If the City has determined that knowledge of the occurrence of a Listed Event would
be material under applicable federal securities laws and if the Dissemination Agent is other than the
City, the City shall promptly notify the Dissemination Agent in writing. Such notice shall instruct
the Dissemination Agent to report the occurrence pursuant to subsection (e).
(d) If the City determines that the Listed Event would not be material under applicable
federal securities laws and if the Dissemination Agent is other than the City, the City shall so notify
the Dissemination Agent in writing and instruct the Dissemination Agent not to report the occurrence
pursuant to subsection (e).
(e) If the City is acting as Dissemination Agent and determines that knowledge of the
occurrence of a Listed Event would be material under applicable federal securities laws, the City
shall promptly file a notice of such occurrence with (i) the Municipal Securities Rulemaking Board
or (ii) each National Repository and, in either case, with the Participating UndeIWriter and each State
Repository. If the Dissemination Agent has been instructed by the City to report the occurrence of a
Listed Event, the Dissemination Agent shall file a notice of such occurrence with (i) the Municipal
Securities Rulemaking Board or (ii) each National Repository, and in either case, with the
Participating UndeIWriter and each State Repository. Notwithstanding the foregoing, notice of
Listed Events described in subsections (a)(4) and (5) need not be given under this subsection any
earlier than the notice (if any) of the underlying event is given to Owners of affected Bonds pursuant
to the Indenture. In each case of the Listed Event, the Dissemination Agent shall not be obligated to
file a notice as required in this subsection (e) prior to the occurrence of such Listed Event.
(f) The City hereby agrees that the undertaking set forth in this Disclosure Agreement is
the responsibility of the City and, if the Dissemination Agent is other than the City, the
Dissemination Agent shall not be responsible for determining whether the City's instructions to the
Dissemination Agent under this Section 5 comply with the requirements of the Rule.
SECTION 6. Termination of Reporting Obligation. The obligations of the City and the
Dissemination Agent under this Disclosure Agreement shall terminate upon the legal defeasance,
prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final
maturity of the Bonds, the City shall give notice of such termination in the same manner as for a
Listed Event under Section 5.
0-5
DOCSOc,80ò5ó.h9I2èè'¡5.01èS
SECTION 7. Dissemination Agent. The City may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Agreement, and
may discharge any such Dissemination Agent, wjth or without appointing a successor Dissemination
Agent. The Dissemination Agent appointed by the City may resign by providing (i) thirty days
written notice to the City, and (ii) upon appointment of a new Dissemination Agent hereunder.
SECTION 8. Amendment.
(a) This Disclosure Agreement may be amended, by written agreement of the parties,
without the consent of the Owners, if an of the fonowing conditions are satisfied: (1) such
amendment is made in connection "ith a change in circumstances that arises from a change in legal
(including regulatory) requirements, a change in law, or a change jn the identity, nature or status of
the City or the type of business conducted thereby, (2) this Disclosure Agreement as so amended
would have complied with the requirements of the Rule as of the date of this Disclosure Agreement,
after taking into account any amendments or interpretations of the Rule, as wen as any change in
circumstances, (3) the City shan have delivered to the Dissemination Agent an opinion of a
nationany recognized bond counselor counsel expert in federal securities laws, addressed to the City,
to the same effect as set forth i;¡ clause (2) above, (4) the City shan have delivered to the
Dissemination Agent an opinion oì nationally recognized bond counselor counsel expert in federal
securities laws, addressed to the City. to the effect that the amendment does not materiany impair the
interests of the Owners or Beneficial Owners, and (5) the City shan have delivered copies of such
opinion and amendment to each Repository and the Participating Underwriter.
(b) This Disclosure Agreement also may be amended by written agreement of the parties
upon obtaining consent of Owners in the same manner as provided in the Indenture for amendments
to the Indenture with the consent of the Owners of the Bonds: provided that the conditions set forth
in Section 8(a)(l), (2), (3) and (5) have been satisfied.
(c) To the extent any a¡nendment to this Disclosure Agreement results in a change in the
type of financial information or operating data provided pursuant to this Disclosure Agreement, the
first Annual Report provided thereafter shan include a narrative explanation of the reasons for the
amendment and the impact of the change in the type of operating data or financial information being
provided.
(d) If an amendment is made to the basis on which financial statements are prepared, the
Annual Report for the year in which the change is made shan present a comparison between the
financial statements or information prepared on the basis of the new accounting principles and those
prepared on the basis of the former accounting principles. Such comparison shall include a
quantitative and, to the extent reasonably feasible, qualitative discussion of the differences in the
accounting principles and the impact of the change in the accounting principles on the presentation of
the financial information.
SECTION 9. Additional Information. Nothing in this Disclosure Agreement shan be
deemed to prevent the City from disseminating any other information, using the means of
dissemination set forth in this Disclosure Agreement or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Listed Event, in
addition to that which is required by this Disclosure Agreement. If the City chooses to include any
information in any Annual Report or notice of occurrence of a Listed Event in addition to that which
is specificany required by this Disclosure Agreement, the City shan have no obligation under this
D-6
DOCSOC\80656-1v9\2è2"5.01 è5
Certificate to update such information or include iI in any futUre Annual Report or notice of
OCCUITence of a Listed Event.
SECTION 10. Default. In the event of a failure of the City or the Dissemination Agent to
comply with any provision of this Disclosure Agreement, any Owner or Beneficial Owner of the
Bonds may take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the City and/or the Dissemination Agent to comply
with their respective obligations under this Disclosure Agreement. A default under this Disclosure
Agreement shall not be deemed an Event of Default under the IndentUre, and the sole remedy under
this Disclosure Agreement in the event of any failure of the City or the Dissemination Agent to
comply with this Disclosure Agreement shall be an action to compel performance.
SECTION 11. Duties. Immunities and Liabilities of Dissemination Agent. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Agreement, and the City agrees to indemnify and save the Dissemination Agent and its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which they may
incur arising out of or in the exercise or performance of their powers and duties hereunder, including
the costs and expenses (including attorneys fees) of defending against any claim of liability, but
excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. Any
Dissemination Agent other than the City shall be paid (i) compensation by the Cily for its services
provided hereunder in accordance with a schedule of fees to be mutUally agreed to; and (ii) all
expenses, legal fees and advances made or incuITed by the Dissemination Agent in the performance
of ils duties hereunder. Any Dissemination Agent other than the City shall have no duty or
obligation to review any information provided to it by the Issuer pursuant to this Disclosure
Agreement. The obligations of the City under this Section shall survive resignation or removal of the
Dissemination Agent and payment of the Bonds. No person shall have any right to commence any
action against the Dissemination Agent seeking any remedy other than to compel specific
performance of this Disclosure Agreement. The Dissemination Agent shall not be liable under any
circumstances for monetary damages to any person for any breach under this Disclosure Agreement.
SECTION 12. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit of
the City, the Dissemination Agent, the Participating Underwriter and Owners and Beneficial Ovmers
from time to time of the Bonds, and shall create no rights in any other person or entity.
SECTION 13. Notices. Notices wilh respect to this Disclosure Agreement should be sent in
writing to:
Disclosure Representative: City ofChula Vista
276 Fourth Avenue
Chula Vista, California 91910
Attention: Deputy City Manager/Director of Finance
Participating Underwriter: Stone & Youngberg LLC
50 California Street, 35th Floor
San Francisco, California 94111
Attention: Research Department
D-Î
DOCSOC\80656-1v9'2::J5.01:5
Dissemination Agent: MuniFinancial
28765 Single Oak Drive, Suite 200
Temecula, California 92590
Attention:
CITY OF CHULA VISTA
By:
Its: Deputy City ManagertDirector of Finance
MUNIFINANClAL, as dissemination agent
By:
Its: Authorized Representative
D-8
DOCSOC\80656-'v9\21145.0115
EXHIBIT A
NOTICE TO REPOSITORIES OF FAILURE TO FILE .AJ';'NUAL REPORT
Name ofIssuer: Chula Vjsta Public Financjng Authoriry
Name of Bond Issue: Chula Vista City Public Financing Authority 2001 Refunding
Revenue Bonds, S . Series A Senior Lien Bonds and
S * Series B Subordinate Lien Bonds
Date ofIssuance: ,2001
NOTICE IS HEREBY GIVEN that the City of Chula Vista, California (the "City") has not
provided an Annual Report with respect to the above-named Bonds as required by Section 3 of the
Continuing Disclosure Agreement, dated as of August 1, 2001. [The City anticipates that the Annual
Report will be filed by .]
Dated:
[Insert Signature Block of Issuer or Dissemination
Agent]
cc: Chula Vista Public Financing Authority
Stone & Youngberg LLC
. Preliminary, subject to change.
D-9
DOCSOC80656-lv9'222.'O 125
APPEI'I'DL"X E
INSURANCE POLICY SPECIME:"i
E-l
DOCSOC8065<HvO\222.j 0125
APPE;\l)L\: F
I:-;FOMLO\TION CO:-;CERl"iING DTC
The information concerning DTC set forth herein has been supplied by The Depository Trust
Company ("DTC"), and the Authority assumes no responsibility for the accuracy thereof
DTC and Book-Entry System
The description that follows of the procedures and recordkeeping with respect to beneficial ownership
interests in the Bonds, payment of principal of and interest on the Bonds to Participants or Beneficial Owners,
confmnation and transfer of beneficial ownership interests in the Bonds. and other Bonds-related transactions
by and between DTC, Participants and Beneficial Owners, is based on infonnation furnished by DTC which
the Authority and'the City each believes to be reliable, bUt the Authority and the City take no responsibility for
the completeness or accuracy thereof.
The Depository Trust Company ("DTC"). New York, NY, will act as securities depository for the
Bonds. The Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTc. One
fully registered Bond wjll be issued for each maturity of the Bonds, in the aggregate principal amount of such
maturity, and will be deposited with DTc.
DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking
organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a
"clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing
agency" registered pursuant to the provisions of Section lì A of the Securities Exchange Act of 1934. DTC
holds securities that its participantS ("ParticipantS") deposit with DTc. DTC also facjlitates the settlement
among ParticipantS of securities transactions, such as transfers and pledges, in deposited securities through
electronic computerized book-entry changes jn Participants' accounts. thereby eliminating the need for
physical movement of securities certificates. Direct Participants include securities brokers and dealers. banks,
trust companies, clearing corporations, and certain other organizations. DTC is o\V-ned by a number of its
Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the
National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as
securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules
applicable to DTC and its Participants are on file with the Securities and Exchange Commission.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which wi1l
receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each
Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records.
Beneficial Owners wi1l not receive written confmnation from DTC of their purchase, but Beneficial Owners
are expected to receive written confmnations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner
entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries
made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners wi1l not receive
certificates representing their ownership interests in Bonds, except in the event that use of the book-entry
system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the
name of DTC's partnership nominee, Cede & Co., or such other name as requested by an authorized
representative of DTc. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or
such other DTC nominee do not effect any changes in beneficial o\mership. DTC has no knowledge of the
F-l
DOCSOC\8065Mv9'2,,45.0 125
acmal Beneficial Ov,ners of the Bonds: DTC's records reflect only,the identity of the Direct Participants to
whose accounts such Bonds are crediteà. which mayor may not be the Beneficial Owners. The Participants
will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, anà by Direct Participants and Indirect Participants to Beneficial Owners
will be governed by arrangements among them, subject to any statutoty or regulatory requirements as may be
in effect ITom time to time.
Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of
notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed
amendments to the bond documents. Beneficial Owners of Bonds may wish to ascertai¡¡ that the nominee
holding the Bonds for their benefit has agreed to obtain and transmit notjce to Beneficial Owners, or in the
alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that
copies of notices be provided directly to them. ' .
Redemption notices shall be sent to DTc. If less than all of the Bonds within an issue are being
redeemed, DTC's practice is to detennine by lot the amount of interest of each Direct Participant in such issue
to be redeemed.
Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to
Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the record
date. The Omnibus Proxy assigns Ceàe & Co.'s consenting or voting rights to those Direct Participants to
whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal anà interest payments on the Bonds will be made to Cede & Co. or such other nominee as
may be requested by an authorized representative of DTc. DTC's practice is to credit Direct Participants'
accounts upon DTC's receipt of funds and corresponding detail information ITom the Trustee or the Authority,
on payable date in accordance with their respective holdings shown on DTC's records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the
case with securities held for the accounts of customers in bearer form or registered in "street name," and will
be the responsibility of such Participant and not ofDTC (nor its nominee), the Trustee or the Authority, subject
to any stamtory or regulatory requirements as may be in effect ITom time to time. Payment of principal and
interest to Cede & Co. (or such other nominee as may be requested by an authorized representative ofDTC) is
the responsibility of the Trustee or the Authority, disbursement of such payments to Direct Participants is the
responsibility of DTC, and disbursement of such payments to Beneficial Owners is the responsibility of Direct
and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any
time by giving reasonable notice to the Trustee or the Authority. Under such circumstances, in the event that a
successor securities depository is not obtained, Bonds are required to be printed and delivered.
The Authority may decide to discontinue use of the system of book-entry transfers through DTC (or a
successor securities depository). In that event, Bonds will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been obtained
from sources that the Authority or the City believe to be reliable, but the Authority or the City take no
responsibility for the accuracy thereof.
None of the Authority, the City or the Trustee will have any responsibility or obligation to DTC
Participants, Indirect Participants or Beneficial Owners with respect to the payments or the providing of notice
to DTC Participants. Indirect Participants or Beneficial Owners or the selection of Bonds for redemption.
F-2
DOCSOC8065ó-!v9:::"5.0 1:5
DTC (or a successor securities depository) may discontinue providing its seI.-ices as secunlles
depository with respect to the Bonds at any time by giving reasonabie notice to the Authority. The Authority,
in its sole discretion and without the consent of any other person, may tenninate the services of DTC (or a
successor securities depository) wjth respect to the Bonds. The Authority and the City undertake no obligation
to investigate matters that would enable the Authority and the City to make such a determination. In the event
that the book-entry system is discontinued as described above, the requirements of the Indenture will apply.
The Authority, the City and the Underwriter cannot and do not give any assurnnces that DTC, the
Participants or others will distribute payments of principal, interest or premium, if any, v.ith respect to the
Bonds paid to DTC or its nominee as the registered Owner, or will distribute any redemption notices or other
notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner
described in this Official Statement. The Authority, the City and the Underwriter are not responsible or liable
for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Owner with
respect to the Bonds or an error or delay relating thereto.
F-3
DOCSOCI806S,,",v91222'¡50125
TABLE OF CO:-;TEXTS
.!'.ill
¡¡"'¡RODUCTION.................................................................................................................................................1
Swnmary.........................................................................................................................................................1
Acquired Obligations......................................................................................................................................2
The Boncls.......................................................................................................................................................2
Reserve Funds ................................................................................................................................................3
Risk Factors ...............................................................................0-00",,""."""..................................................3
THE PLAN OF FINA.l\!CE ...................................................................................................................................4
SOURCES A."ffi USES.........................................................................................................................................5
Bonds..............................................................................................................................................................5
Acquired Obligations......................................................................................................................................5
THE BONDS.....'....................................................................................................................................................6
Description of the Bonds ................................................................................................................................6
Redemption.....................................................................................................................................................6
Purchase in Lieu of Redemption ....................................................................................................................8
Selection of Bonds for Redemption................................................................................................................8
Notice of Redemption................................................................ ......................................................................8
Effect of Redemption..................................................................... ............................................................8
Transfers and Exchange..................................................................................................................................9
Debt Service Schedule....................................................................................................................................9
SECl,lUTY FOR THE BONT>S ..........................................................................................".............................11
Repayment oîthe Bonds...............................................................................................................................11
Repayment oîthe Acquired Obligations ."".,.,..",.".,.",."..,.",.,.,."".,."".,....,."",.".....................................13
Levy and Collection oîReassessments.........................................................................................................14
Method oîReassessment Spread ..................................................................................................................15
Covenant to Foreclose ",."""""""""""".,."",."".""."."",.""".,.""".,."".,."...............................................15
Judicial Foreclosure Sale Proceedings................................:.........................................................................15
Sales ofTax-Deîaulted Property Generally..................................................................................................16
Bond Insurance ............................................,..................."""".",."""""",...................................................17
Priority of Lien ..................................................................."........................................................................17
Existing Liens...............................................................................................................................................17
No Obligation oîthe City Upon Delinquency ..............................................................................................17
Prepayment of Reassessments """""""",.""""""."",,"""""."""""""""""""""""""".'"..........................17
BONT> INSURANCE FOR SERIES A BONDS ................................................................................................17
[To Come] ....................................................................................................................................................18
THE REASSESSMENT DISTRICTS ................................................................................................................19
General.........................................................................................................................................................19
Reassessment District 2001-1 .......................................................................................................................19
Reassessment District 2001-2.......................................................................................................................21
Allocation of Original Assessment Districts into Reassessment Districts....................................................23
Land Uses and Development Status and Estimated Assessed Value-to-Lien Ratios ...................................23
Assessed Value-to-Reassessment Lien Ratios..............................................................................................26
Largest Landowners by Reassessments........................................................................................................26
EastLake Company.......................................................................................................................................29
Debt Service Coverage .................................................................................................................................29
Delinquency History .....................................................................................................................................31
Direct and Overlapping Debt................. ........................................................., ............................. ........32
DOCSOC\80656-1v9\21145.0 I"
TABLE OF CO,,"TENTS
(continued)
r.w
SPECIAL RISK FACTORS................................................................................................................................36
The Bonds are Limited Obligations of the Authority ...................................................................................36
The Reassessments are Not Personal Obligations of the Property Owners..................................................36
The Acquired ObEgations are Limited ObEgations of the City ...................................................................36
Potential Early Redemption of Bonds from Prepayments ............................................................................37
Risks of Real Estate Secured Investments Generally ...................................................................................37
Failure to Develop Property; Future Land Use Regulations and Growth Control Initiatives.......................37
Potential Limitations on Deve1opment .........................................................................................................38
Bankruptcy and Foreclosure Delays.............................................................................................................40
FDIC/Federal Government Interests in Properties .4......................................................................................1
Price Realized Upon Foreclosure "",."""""",.,."""""""""""""".,""""""""'.'."""".................................42
Natural Disasters ..........................................................................................................................................42
Priority of Reassessment Liens............................................................;........................................................42
Land Values..................................................................................................................................................43
Threatened and Endangered Species ............................................................................................................43
Hazardous Substances ..................................................................................................................................43
Cumulative Burden of Parity Ta:'(es. Special Assessments and Development Costs; Direct and
Overlapping Debt...................................................................................................................................44
Loss of Tax Exemprion.................................................................................................................................45
CaEfornia Constiturion Article XIIlC and Article XIIID .............................................................................45
No Acceleration............................................................................................................................................46
Limitations on Remedies ..............................................................................................................................46
Electricity Crisis ......................................................... .................................................. ..............................46
SPECIAL RlSK FACTORS SPECIFIC TO SERlES B BONDS .......................................................................48
Subordination of Series B Bonås....................................................................... ..........................................48
Limiteå Secondary Market ...........................,....................".""."".,."",."....................................................48
No Rating of Series B Bonds........................................................................................................................48
No Insurance; Remeåies Comrolleå by Series A Bond Insurer ...................................................................48
THE AUTHORlTY .............................................................................................................................................49
THE CITY ........................................................................................................................................,..................49
CONCLUDING INFOR.1\1ATION......................................................................................................................49
Underwriting.................................................................................................................................................49
Financial Advisor .........................................................................................................................................49
Legal Opinion; Legal Matters.......................................................................................................................49
Tax Matters...................................................................................................................................................50
No Litigation ................................................................................................................................................50
Verification of Mathematical Computarions ................................................................................................50
Ratings of Series A Bonds............................................................................................................................51
Continuing Disclosure ..................................................................................................................................51
Miscellaneous ...............................................................................................................................................51
ii
DOCSOC\806564v9122245.0 125
TABLE OF CO!'."TENTS
(continued)
~
APPENTIIX A INFORMATION REGARDING THE CITY OF CHULA VISTA............................... A-I
APPENDIX B SUMMARY OF BOND DOCUMENTS ........................................................................B- I
APPENDIX C PROPOSED FORM OF BOND COUNSEL OPINIONS...............................................C-l
APPENTIIX D FORM OF CONTINUING DISCLOSURE AGREEMENT ......................................... D-l
APPENDIX E INSURANCE POLICY SPECIMEN..............................................................................E-I
APPENDIX F INFORMATION CONCER.c"iING DTC......................................................................... F-l
1lI
DOCSDC\80ó56-h9\22245.0 125