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HomeMy WebLinkAboutRDA Packet 2005/04/19 REVISED ~V?- -.- .--- - - ~--~~ ~- - TUESDAY, APRIL 19, 2005 6:00 P.M. (immediately following the City Council meeting) CllY OF CHUlA VISTA COUNCIL CHAMBERS PUBLIC SERVICES BUILDING SPECIAL MEETING OF THE HOUSING AUTHORITY MEETING JOINTLY WITH THE CITY COUNCIL/REDEVELOPMENT AGENCY CALL TO ORDER ROLL CALL Agency/Council/Housing Authority Members Castaneda, Davis, McCann, Rindone, Chair/Mayor Padilla CONSENT CALENDAR The staff recommendations regarding the following item!s) listed under the Consent Calendar will be enacted by the Council/Agency by one motion without discussion unless an Council/Agency 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 Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Public Hearing items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - March 1, 2005; March 22, 2005 2. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A TWO-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND ECONOMIC AND PLANNING SYSTEMS, INC.. TO PROVIDE A PUBLIC FACILITIES IMPLEMENTATION PROGRAM FOR THE URBAN CORE SPECIFIC PLAN. AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT - Adoption of the resolution approves a contract with Economic and Planning Systems, Inc., to provide consulting services and the preparation of a facilities implementation plan for the Urban Core Specific Plan. This task is an essential and parallel product that will assess and assure that the Specific Plan public facility needs and proposals can be implemented to serve new development in the plan area. (Director of Community Development) STAFF RECOMMENDATION: Council/Agency adopt resolution. ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency trom taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the n 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. 3. CONSIDERATION OF ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS In 2003, the Housing Authority of the City of Chula Vista issued Multi- Family Housing Revenue Bonds in the approximate amount of $11.8 million to assist CIC EastLake, L.P., construct a 150-unit affordable housing development, known as Rancho Buena Vista Apartments, located at 21 55 Corte Vista in the EastLake master planned community. CIC EastLake is requesting that the Housing Authority and the City of Chula Vista consider the issuance of additional tax exempt bonds in the amount of $1.71 5 million. The additional bond allocation will be used to finance cost overruns experienced by the project. [Director of Community Development, Director of Finance] STAFF RECOMMENDATION: Housing Authority adopt resolution (a); and City Council conduct the public hearing and adopt resolution (b): a. RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO ISSUE TAX- EXEMPT OBLIGATIONS 4/5THS VOTE REQUIRED b. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR RANCHO BUENA VISTA APARTMENTS AT EASTLAKE 4/5THS VOTE REQUIRED Redevelopment Agency, April 19, 2005 Page 2 OTHER BUSINESS 4. DIRECTOR'S REPORT 5. CHAIR REPORT 6. AGENCY COMMENTS ADJOURNMENT The Special Meeting of the Housing Authority will adjourn separately until further notice; the Redevelopment Agency will adjourn to a Regular Meeting on May 17, 2005, at 6:00 p.m., in the Council Chambers. AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans with Disabilities Act (ADA), request individuals who require special accommodates to access, attend, andlor 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 (619) 691-5047 or Telecommunications Devices for the Deaf ITDD) at 1619) 585-5647. California Relay Service is also available for the hearing impaired. Redevelopment Agency, April 19, 2005 Page 3 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA March I, 2005 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 5:45 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Councilmembers: Castaneda, Davis, McCann, Rindone and Mayor Padilla ABSENT: Agency/Councilmembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR 1. APPROVAL OF MINUTES - February 3,2004, February 8,2005 and February 15, 2005 Staff recommendation: Council/Agency approve the minutes. ACTION: Chair/Mayor Padilla moved to approve the minutes as submitted. The motion carried 5-0, except with regard to the minutes of February 3, 2004, for which the motion carried 4-0-1, with Councilmember Castaneda abstaining since he was not a member of the Council at that time. ORAL COMMUNICATIONS There were none. PUBLIC HEARING 2. CONSIDERATION OF I) ADOPTION OF A MITIGATED DECLARATION; 2) APPROVAL OF THE ARCHITECTURAL DESIGN FOR ALLEN GAS AND DIESEL TRUCK STOP FOR THE EXPANSION AND OPERATION OF AN AUTOMOBILE GAS AND SERVICE STATION AND CONVENIENCE STORE, AND; 3) ALLOWING REDUCTIONS IN THE REQUIRED EXTERIOR SETBACKS AND 15- FOOT LANDSCAPE BUFFER REQUIREMENT OF THE MONTGOMERY SPECIFIC PLAN FOR THE PROPERTY LOCATED AT 3205 MAIN STREET WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA Design approval for architectural and site design and variance request to allow reductions in the required setbacks and 15- foot landscape buffer for the removal and expansion of the Allen Gas and Diesel Truck Stop located at 3205 Main Street in the ILP zone. (Director of Planning and Building) PUBLIC HEARING (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 Padilla opened the public hearing. Associate Planner Walker presented the proposed service station expansion and operation plans. With no members of the public wishing to speak, Chair/Mayor Padilla closed the public hearing. ACTION: Councilmember McCann offered Agency Resolution No. 1904, heading read, text waived: AGENCY RESOLUTION NO. 1904, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA 1) ADOPTING MITIGATED NEGATIVE DECLARATION IS-00-50; 2) APPROVING DESIGN APPROVAL DRC-04-47 FOR THE EXPANSION AND OPERATION OF A SERVICE STATION; AND 3) GRANTING VARIANCE ZAV-04-I2 TO ENCROACH INTO THE REQUIRED SETBACKS AND THE I5-FOOT LANDSCAPE BUFFER FOR ALLEN GAS AND DIESEL TRUCK STOP LOCATED AT 3205 MAIN STREET IN THE ILP ZONE The motion carried 5-0. OTHER BUSINESS 3. DIRECTOR/CITY MANAGER'S REPORTS There were none. 4. CHAIR!MA YOR'S REPORTS There were none. 5. AGENCY/COUNCILMEMBER COMMENTS There were none. CLOSED SESSION 6. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(a) . Redevelopment Agency of the City of Chula Vista v. de Flores, et al. (SDSC Case No. GIC 827799-1) No reportable action was taken on this item. Page 2 - CouncillRDA Minutes 03/01/05 ADJOURNMENT At 7:00 p.m., Chair/Mayor Padilla adjourned the City Council to a Regular Meeting on March 15,2005, at 6:00 p.m.; and the Redevelopment Agency to a Regular Meeting on March 15, 2005, immediately following the City Council meeting in the Council Chambers. ~~~~~ Susan Bigelow, MMC, City Clerk Page 3 - CouncillRDA Minutes 03/01/05 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA March 22, 2005 6:00 p.m. Adjourned Regular Meetings of the City Council and the Redevelopment Agency of the City of Chula Vista were called to order at 8:03 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: ABSENT: Agency/Councilmembers: Castaneda, Davis, McCann, Rindone Agency/Councilmembers: Chair/Mayor Padilla ALSO PRESENT: Executive Director/City Manager Rowlands, Assistant City Attorney Marshall, and Assistant City Clerk Norris CONSENT CALENDAR 1. WRITTEN COMMUNICATIONS Request from Agency/Councilmember Rindone for an excused absence from the February 15, 2005, joint Redevelopment Agency/City Council Meeting. Staff recommendation: Agency/Council excuse the absence. 2. COUNCIL RESOLUTION NO. 2005-103, AND AGENCY RESOLUTION NO. 1905, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS AS IMPRACTICAL AND APPROVING AN AGREEMENT WITH E.J. DE LA ROSA & COMPANY, AS UNDERWRITERS FOR THE REFUNDING OF THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY 1994 SENIOR TAX ALLOCATION BONDS, SERIES A; WAIVING THE CONSULTANT SELECTION PROCESS AND APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH HARRELL & COMPANY ADVISORS, LLC TO SERVE AS FINANCIAL ADVISORS; AND AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACTS With the assistance of Harrell & Company, staff is exploring the feasibility of refunding the City of Chula Vista Redevelopment Agency 1994 Senior Tax Allocation Refunding Bonds, Series A. Based on preliminary projections, refunding would provide an annual debt service savings of$185,000 or a net present value savings of $2.3 million, or 17.9% of the par amount over the life of the bonds, based on an assumed interest rate of 4.93%. (Director of Finance/Treasurer) Staff recommendation: Agency/Council adopt the resolution. 3. CONSIDERATION OF I) AMENDING AND RESTATING THE JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY; 2) APPROVING THE BORROWING OF FUNDS BY THE REDEVELOPMENT AGENCY FROM CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY; AND 3) EXECUTING A LOAN AGREEMENT RELATING TO THE ISSUANCE OF CERTAIN BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (Director of Finance/Treasurer) CONSENT CALENDAR (Continued) As part of the effort to balance the 2005 budget of the State of Cali fomi a, redevelopment agencies are obligated to make payments totaling $250 million to the Educational Revenue Augmentation Fund (ERAF). Individual ERAF payments were determined based on the Agency's tax increment as a proportion of the total tax increment of all agencies throughout the State. The City of Chula Vista Redevelopment Agency's ERAF obligation for Fiscal year 2005 is $743,358. (Director of Finance/Treasurer) A. AGENCY RESOLUTION NO. 1906, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF AN AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY B. COUNCIL RESOLUTION NO. 2005-104, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE BORROWING OF FUNDS BY THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA FROM CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY AND PROVIDING OTHER MATTERS RELATING THERETO C. AGENCY RESOLUTION NO. 1907, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING AND DIRECTING EXECUTION OF LOAN AGREEMENT RELATING TO THE ISSUANCE OF CERTAIN BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY, APPROVING OFFICIAL STATEMENT RELATING TO SUCH BONDS AND AUTHORIZING AND APPROVING OTHER MATTERS RELATING THERETO Staff recommendation: Agency adopt Resolutions A and C, and Council adopt Resolution B. ACTION: Deputy Mayor Davis moved to approve staffs recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 4-0. ORAL COMMUNICATIONS There were none. OTHER BUSINESS 4. DIRECTOR/CITY MANAGER'S REPORTS There were none. Page 2 CouncillRDA Action Agenda 03/22/05 OTHER BUSINESS (Continued) 5. CHAIR/MAYOR'S REPORTS There were none. 6. AGENCY/COUNCILMEMBER COMMENTS There were none. ADJOURNMENT At 8:08 p.m., Deputy Mayor Davis adjourned the meeting to a Regular Meeting on April 5, 2005, at 4:00 p.m., immediately following the City Council Meeting in the Council Chambers. ~6JJ~ir~~ Donna Norris, CMC, Assistant City Clerk Page 3 CouncillRDA Action Agenda 03/22/05 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ., Item No.: rl.. Meeting Date: 4/19/05 ITEM TITLE: Joint resolution of the City Council and the Redevelopment Agency of the City of Chula Vista approving a two-party agreement hetween the City of Chula Vista and Economic and Planning Systems, Inc., to provide a public facilities implementation program for the Urban Core Specific Plan and authorizing the Mayor to execute said agreement SUBMITTED BY: Community Development Director ~ ~lJ "^ G'( REVIEWED BY: CityManager }uJ\1r' (4/5thsVote: Yes_NoX-) The item before the City Council and Agency is a request for the City Council and Agency to approve the proposed contract with Economic and Planning Systems, Inc., to provide consulting servcies and the preparation of a facilities implementation plan for the Urban Core Specific Plan. This task is an essential and parallel product which will assess and assure that the Specific Plan public facility needs and proposals can be implemented to serve new development in the plan area. RECOMMENDATION: That the City Council and Agency adopt a Resolution approving a two-party agreement between the City of Chula Vista and Economic and Planning Systems, Inc., to provide a public facilities implementation program for the Urban Core Specific Plan, and authorizing the Mayor to execute said agreement. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: Background In January, 2004, the City Council/Agency approved a work program and consultant contract to commence preparation of the Urban Core Specific Plan. The preparation of the Specific Plan is currently proceeding on schedule. An important component of the Urban Core project, not included in the planning contract, is the preparation of a facilities finance plan. In order to identify the most qualified firm to assist the City in preparing the facilities finance plan, City staff conducted a selection process in compliance with Chula Vista Municipal Code g2.56.IIO.C. As result of this highly competitive bid and review process, staff proposes the City contract with Economic and Planning Systems, Inc., to prepare the facilities finance plan Page 2, Item No.: d-- Meeting Date: 04/19/05 component of the Urban Core project. The proposed contract, including a detailed scope of work, is attached to this Agenda Statement. The Task The facilities plan for the Urban Core Specific Plan is of critical importance. Among the key benefits of the Specific Plan will be amenities and capacity enhancements, in the form of such things as parks, pedestrian spaces, utilities, transit accommodation and roadway improvements. The effort to plan and program the delivery of these essential public facilities within the Urban Core will be especially challenging. In new communities, the City has assessed such matters through the preparation of Public Facilities Finance Plans (PFFPs). These documents have served well to address the extension of facilities coinciding with the relatively short-term timing of new master planned neighborhoods and subdivision improvements. The Urban Core presents a vastly different set of circumstances: the placement or upgrading of public facilities within an existing neighborhood, in support of infill and redevelopment over a period of perhaps decades. The challenge of the Urban Core requires the skills of a consultant that can not only translate the fixed expenses of facilities but also provide a reliable and adaptable system to monitor and phase implementation. Economics and Planning Systems, Inc., together with an on-call engineering subcontractor McGill, Martin and Self, will provide technical competence, broad experience and understanding of local process. They were selected over five other responsive firms, interviewed by a review panel with representatives from the City's Engineering, Park Design, and Planning and Community Development departments, as representing the best combination of value and approach to the task. Contractor Status and Background Economic and Planning Systems, Inc., has current contracts with the City of Chula Vista as described in the table below Contract Deoartment Contract Amount Pavrnents to Date Growth Management Element and Planning $80,000 $20,971.09 Ordinance Revisions Eastern Chula Vista Shopping Planning $15,000 $10,565.00 Center Analvsis Sweetwater UHSD Development Community $ 9,800 $2,815.38 Economic Analvsis Develooment Community Development Community $20,000 $2,350.00 Strategic Planning (Closed) Development (Total Billed) Page 3, Item No.: d- Meeting Date: 04/19/05 EPS is a land economics consulting fire experience in the full spectrum of services related to real estate development market analysis, public/private partnerships, and the financed of government services and public infrastructure. It has provided these services since 1983. The firm is headquartered in Berkeley, California, with offices in Sacramento and Denver. EPS has current contracts with the City of Chula Vista as described in the table below. Contract Amount The attached contract is for a not-to-exceed amount of $131,180. Two of the contract components, covering meeting attendance and a time-and-materials allowance of $25,000 for engineering sub-consultant support, are also included in the not-to-exceed amount. Economic and Planning Systems, Inc., staffing costs for this contract total to $99,030. FISCAL IMPACT: The budget for the Urban Core Specific Plan implementation program will be carried out within account RD 242. This contract has no net effect on the General Fund. J :ICOMMDEVISTAFF.REP\2005I04-19-05IEPSContracllntReport-red1ine-jbh.doc AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A TWO-PARTY AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY AND ECONOMIC AND PLANNING SYSTEMS, INC., TO PROVIDE A PUBLIC FACILITIES IMPLEMENTATION PROGRAM FOR THE URBAN CORE SPECIFIC PLAN; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, on May 27, 2003, the City Council of the City of Chula Vista (the "City") and the Redevelopment Agency of the City of Chula Vista (the "Agency") directed staff to initiate the preparation of an Urban Core Specific Plan; and WHEREAS, the City has commenced and is pursuing preparation of the Urban Core Specific Plan to provide development standards within a study area generally bounded by "c" Street to the north, L Street to the south, Interstate 5 to the west, and Del Mar Avenue to the east, and including the Town Center I and Town Center II Redevelopment Project Areas; and WHEREAS, in order that the Specific Plan meets its objectives, it must be accompanied by a program that addresses the timely provision of public facilities; and, WHEREAS, the City conducted a Request for Proposals process, in compliance with Chula Vista Municipal Code ~2.56.11 0, to solicit proposals from qualified consultants to provide the public facilities implementation program for the Urban Core Specific Plan; and, WHEREAS, that selection process identified Economic and Planning Systems, Inc. ("Consultant") as the most qualified firm to provide the public facilities implementation program for the Urban Core Specific Plan; and WHEREAS, Consultant is uniquely qualified to serve as the Consultant for this task based on the Consultant's experience and expertise with fiscal and economic programs and with assessing the means of financing public infrastructure; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can prepare and deliver the services required of Consultant within the time frames specified in the Agreement. NOW, THEREFORE, BE IT RESOLVED that the City Council and the Redevelopment Agency 0 fthe City 0 f Chula Vista hereby approve the agreement between the City 0 fChula Vista Redevelopment Agency and Economic and Planning Systems, Inc., to prepare an Implementation Program for the Urban Core Specific Plan for a "not-to-exceed" amount of $131,180 (the "Agreement"); BE IT FURTHER RESOLVED that the Mayor ofthe City of Chula Vista is hereby authorized and directed to execute the Agreement, and such other agreements, documents and certificates, and to perform such other acts and deeds as may be necessary or convenient to effect the purposes of this Resolution and the transactions authorized by it. Presented by Approved as to form by Laurie Madigan Director of Community Development () 'i!tfi (jI~LI oore ~ Attorney an Agency Counsel J :\COMM DEV\RESOS\2005\04-19~05\EPSReso]ution-redline-Final.doc Agreement between City of Chula Vista and ECONOMIC & PLANNING SYSTEMS, INC. For the provision of Consulting Services required for preparation of the Urban Core Specific Plan Implementation Program. This agreement ("Agreement"), dated , for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph I is between the City-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals WHEREAS, the City has commenced and is pursuing preparation of the Urban Core Specific Plan to provide development standards within a study area generally bounded by "c" Street to the north, L Street to the south, Interstate 5 to the west, and Del Mar A venue to the east, and including the Town Centre I and Town Centre II Redevelopment Project Areas; and WHEREAS, in order that the Specific Plan meets its objectives, it must be accompanied by a program that addresses the timely provision of public facilities; and, WHEREAS, the City conducted a Request for Proposals process to solicit proposals from qualified consultants to provide the public facilities implementation program for the Urban Core Specific Plan; and, WHEREAS, the Consultant is uniquely qualified to serve as the Consultant for this contract based on the firm's experience and expertise with fiscal and economic programs and assessing the means of financing public infrastructure; and WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties 9/26/01 J:ICOMMDEVlAGREEMENTSIUCSPPFFConlractEPS-redline-final.doc Page I A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties". B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled" Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, within the time frames set forth therein, time being of the essence of this agreement. The General Duties and the work and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the option of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defmed Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. 9/26/01 J:ICOMMOEVlAGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 2 F. Insurance Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy. G. Proof of Insurance Coverage (1) Certificates ofInsurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. (2) Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager. H. Security for Performance (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond by a surety and in a form and amount satisfactory to the Risk Manager 9/26/01 J:ICOMMOEVlAGREEMENTSIUCSPPFFConlractEPS-redline-final.doc Page 3 or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Paragraph 19, Exhibit A. (2) Letter of Credit. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Paragraph 19, Exhibit A. (3) Other Security. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. I. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate 9/26/0 I J:ICOMMDEV\AGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 4 Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment. 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in per- formance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 14 ("Liquidated Damages Rate"). Time extensions for delays beyond the consultant's control, other than delays caused by the City, shall be requested in writing to the City's Contract Administrator, or designee, prior to the expiration of the specified time. Extensions of time, when granted, will be based upon the effect of delays to the work and will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 9/26/0 I J:ICOMMOEVlAGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 5 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. Search to Determine Economic Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. D. Promise Not to Acquire Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will not acquire, obtain, or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. E. Duty to Advise of Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests Consultant warrants and represents that neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents ("Consultant Associates") presently have 9/26/0 I J:ICOMMDEVlAGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 6 any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, ("Prohibited Interest"), other than as listed in Exhibit A, Paragraph 15. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement, or for 12 months thereafter. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission of City. Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions ofthe Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of City, its officers or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys fees and liability incurred by the City, its officers, agents or employees in defending against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. 9/26/01 J:ICOMMDEVlAGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 7 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other provisions of this agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifYing the effective date thereof, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Permitted Subconsultants". 12. Ownership, Publication, Reproduction and Use of Material 9/26/01 J:\COMMDEVlAGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 8 All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14. Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreement result in 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. The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought. 16. Statement of Costs 9/26/0 I J:ICOMMOEVlAGREEMENTSIUCSPPFFConlraclEPS-redline-final.doc Page 9 In the event that Consultant prepares a report or document, or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include, or cause the inclusion of, in said report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman If the box on Exhibit A, Paragraph 16 is marked, the Consultant and/or their principals is/are licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue 9/26/0 I J:\COMMDEVlAGREEMENTS\UCSPPFFContractEPS-redline-final.doc Page 10 This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. [end of page. next page is signature page.] 9/26/0 I J:ICOMMOEV\AGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 11 Signature Page to Agreement between City of Chula Vista and ECONOMIC & PLANNING SYSTEMS, INC. For tbe provision of Consulting Services reguired for preparation of the Urban Core Specifi~ Plan Implementation Program. IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: .2005 City of ChuIa Vista by; Stephen C. Padilla Mayor Attest: Susan Bigelow, City Clerk Approved as to fonn: Ann Moore, City Attorney Dated: Economic & Planning Systems, Inc. ~ , ( ,. / By; \ f,...i,...,;(. L//.f/tt:-"", James K1usbach; Managing Principal Exhibit List to Agreement L~~ (/-._~ \ (X) Exhibit A. Exhibit A to Agreement between City of Chula Vista and Economic & Planning Systems, Inc. 1. Effective Date of Agreement: .2005 2. City-Related Entity: o City of Chula Vista, a municipal chartered corporation of the State of California (X) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ( ) Industrial Development Authority of the City of Chula Vista, a () Other: business form] a [insert ("City") 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: Economic & Planning Systems, Inc. 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 2501 Ninth Street, Suite 200 Berkeley, California 94710-2515 9/26/01 J:\COMMDEV\AGREEMENTS\UCSPPFFContractEPS-redline_final.doc Page 13 Phone: 510-841-9190 Fax: 510-841-9208 7. General Duties: Consultant will prepare an implementation program for the Urban Core Specific Plan, a planning policy and regulatory plan of the City of Chula Vista. The consultant shall provide economic, fiscal, cost and funding projection services related to public infrastructure financing and implementation within a built urban area. These services are as set forth in a bid document dated March 10, 2005. 8. Scope of Work and Schedule A. Detailed Scope of Work Within the General Duties described above, and as more fully set forth in the Consultant's proposal dated March 10, 2005, Consultant and Sub Consultants shall perform all of the following to the satisfaction of the Deputy Director of Community Development. Under direction of City staff, and subject to refinement as a part of Task I, specific tasks and sub-tasks tasks will include: Task I-Project Initiation Consultant will undertake subtasks to culminate in a final Work Program for the Financing Plan. These will include: Task 1.1: Initial Meeting - Consultant will organize an initial meeting with Staff to establish liaison, design a management framework and direction, and assess data and technical resources; Task 1.2: Coordination with Specific Plan Preparation - Consultant will assess what has been accomplished and coordinate with the Specific Plan consulting team and staff to assure maximum use of work completed to date and to avoid overlapping or conflicting efforts; Task 1.3: Staff/Consultant Workshop - Consultant will coordinate a daylong workshop to discuss all aspects of the Financing Plan providing an initial sketch of its form and contents, an initial policy framework, and analysis of key issues or problems that will be confronted; and Task 1.4: Work Program Specification - Consultant will use the results of the Workshop to provide a detailed assessment of data needs, technical analysis, resource requirements, and assignments for the Consultant, specialist consultants, and staff. This Work Program Specification will be set forth in a technical memorandum that may result in changes and additions to this proposed work program. Task 2-Development Prospects In Task 2, Consultant will test market support, characterize likely future demand, and provide the development scenarios that are necessary for establishing facility requirements and financing programs. Task 2.1: Development Capacity Analysis - Development capacities 9/26/0 I J:ICOMMDEV\AGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 14 information from the draft plan and environmental documents will be obtained, reviewed, and updated by the Consultant as needed to provide the necessary data for subsequent steps. Task 2.2: Market Analysis - Consultant will overview the regional market for key land uses, relying on the information prepared for the General Plan, will be conducted in order to understand the uses and intensities of development that are likely to emerge in the Urban Core Area given the policy framework of the Specific Plan. Task 2.3: Development Feasibility Analysis - Consultant will conduct development feasibility of individual development prototypes using pro forma financial analysis. The development feasibility analysis will help establish the potential for new development in the Urban Core Area to absorb development exactions or land-based financing requirements. Task 2.4: Development Scenarios - Consultant will combine the development capacity analysis and the market analysis leading to the preparation of development scenarios, two likely "market outcomes" for the Urban Core Area, given market realities. Consultant willdocument this information in a Technical Memorandum and to be used in subsequent tasks for estimating the need for public facilities and for fiscal and financial forecasting. Task 3-Public Facilities Assessment It is assumed that the information required for the public facilities assessment is largely available from the City's public works staff and prior engineering studies done for the Urban Core Area (including the Specific Plan and related EIR). Sub consultant will be engaged as needed, including a civil engineer and traffic engineer, to complete additional analysis or assessment. Task 3.1: Inventory of Existing Facilities and Services - Consultant will review City's data regarding the location, condition, and deficiencies in local infrastructure. This inventory and assessment data will be assembled and evaluated, by Consultant, for completeness; Consultant will update where necessary and will document the inventory in a "spreadsheet" data base format. Task 3.2: Planned Facilities - Consultant will identify currently planned or constructed Urban Core Area Improvements through discussions with the City's public works staff, and these will be added to the public facilities database. Task 3.3: Facility Requirements - Consultant will compare General Plan Program and related updates to the City's Growth Management Program to establish that "service standards thresholds" appropriate for an urbanizing area have occurred. Consultant will establish facility requirements by applying the development capacity and development scenarios to the service standards. The need for additional facilities and improvement will be derived, by Consultant, taking into consideration the existing and planned complement of public facilities. Consultant has 9/26/0 I J:ICOMMOEV\AGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 1 retained McGill Martin Self, Inc. (MMS) to provide additional detail and analysis as necessary. Task 3.4: Urban Core Improvement Program- The already-planned and newly determined public facility needs will be documented by the Consultant in an Urban Core Improvement Program (UCIP). This list, in spreadsheet format that includes corresponding cost estimates and other details, will be the basis of subsequent financial analysis. It is expected that the initial UCIP will be a "work-in-progress" as the PFFP evolves. Task 4-Funding Sources and Uses This task will evaluate sources of funding necessary to implement the facilities program derived by the Consultant in previous tasks. Task 4.1: Document And Estimate Funding Sources - In this task the Consultant will document funding available from all available or possible sources including: I) municipal sources (e.g., City General Funds); 2) Redevelopment Agency sources (e.g., property tax increment); 3) grants- in-aid (e.g., federal highway funding); and 4) area-specific sources, including assessments, special taxes, and impact fees. Task 4.2: Financing Options and Strategy - The funding sources identified in Task 4.1 often have a relationship to specific public facility types. In Task 4.2, Consultant will provide an initial assessment of funding requirements, options, and strategies using the financial model to organize the identified options into to a series of strategies. Task 5--Urban Core Development Impact Fee Framework One of the key components of the PFFP is creating the policy and technical basis for an Urban Core Area Development Impact Fee (UCDIF). Consultant will prepare the technical analysis described above in a manner that supports this objective. The following tasks detail the additional work that will be required to establish the UCDIF: Task 5.1: Select UCDIF-funded Projects - Using the financing strategy conducted in Task 4.2, the Consultant, working with staff select candidate projects that will be funded, all or in part, by the UCDIF. It is expected that the list will evolve over time as further analysis is conducted. Task 5.2: Conduct Nexus Analysis - Consultant will identify the types of public facility projects, or, in some instances, specific facilities that will require a "nexus" analysis that documents, consistent with the requirements of Government Code 66000, the linkage between the need for the facility and new development. Consultant will provide this analysis. Task 5.3: Feasibility Testing of Impact Fees - A key issue for funding with a UCDIF will be the impact of additional development costs on 9/26/01 J:\COMMOEVlAGREEMENTS\UCSPPFFConlractEPS-redline-final.doc Page 16 development feasibility. The market demand and financial feasibility of the uses envisioned for the Urban Core will have been explored in Task 2.3, which will provide an early assessment of the likely amount of additional "financial burden" that is consistent with attracting private developers and investment capital to the Urban Core Area. Consultant will evaluate where these results may require adjustments to the UCDIF funded project list or the share of cost included in the fee program. This process is expected to yield guidelines for establishing the UCDIF in a manner that is consistent with City objectives. Task 5.4: Implementation Guidelines - As noted above, Task 5 is intended to provide the technical basis for establishing the appropriate UCDIF ordinance and related fee schedule resolutions. Consultant will outline the necessary procedural steps required to implement the UCDIF. Task 6-Fiscal Analysis The Consultant will develop a standard spreadsheet-based fiscal analysis for the Urban Core area, focusing on the operating budget of the City's General Fund, the details of the technical specification for such fiscal analysis can be resolved as a part of Task I. Task 6.1: Forecast Municipal Operating and Maintenance Costs _ Consultant will prepare a forecast of municipal operating and maintenance costs linked to specific time periods or stages of development. Task 6.2: Forecast Municipal Revenue - Consultant will estimate municipal revenues using algorithms that emulate each key revenue item. The revenue forecast will be based upon the development scenarios prepared in Task 2.4, reflecting the same time or development horizons as used for the cost forecast. Task 6.3: Evaluate Fiscal Effects - Consultant will combine the results of Tasks 6.1 and 6.2 to estimate fiscal effects. The pattern of fiscal flows will be documented and placed in proper context. The documentation and results of Task 6 will be combined into a Technical Memorandum. If negative fiscal effects are indicated, Consultant will advise on and identify various mitigation measures to offset these effects and assure an ongoing positive fiscal contribution of the Urban Core Area to the City. Task 7-Draft Urban Core Specific Plan Public Facilities Financing Plan The foregoing technical tasks will serve as a technical basis upon which the Consultant will prepare the Urban Core Specific Plan Public Facilities Financing Plan (UCPFFP). The Plan itself is envisioned as a graphically pleasing policy document with a companion set of technical appendices derived from the technical work described above. The UCPFFP will detail a boundary map, list of public improvements, anticipated development, and all other elements required by law and ordinance. Consultant will provide 25 copies of an initial draft, and meet with City staff to discuss the initial draft and hear comments and concerns. EPS will subsequently provide 25 copies of a second draft after incorporation of comments. 9/26/0 I J:\COMMDEV\AGREEMENTS\UCSPPFFContractEPS.redline_final.doc Page 17 Task 8-Final Report Consultant will formally present the UCPFFP to the Planning Commission and City Council. Once comments and other changes arising from these presentations and any subsequent review of the UCPFFP have been incorporated, EPS will provide the City with 25 copies of the final document and appendices, along with one electronic copy on CD and one photo-ready master copy. Task 9-Meetings Both James R. Musbach and Walter Kieser, the Managing Principals at EPS who will oversee Consultant's work on this project, will be available to present the UCPFFP to a public forum (and the Planning Commission and City Council). In addition to these meetings and others specified in the Work Program above, EPS has provided a budget for the bi-weekly meetings specified in the RFP. Task 10--Engineering Services The not to exceed amount of this Agreement (as specified in section II.C.(l), below) includes $25,000 for engineering services provided by subconsultant MMS. MMS will assist in the early stages in assessing the available infrastructure data and where supplemental analysis will be necessary. During the process of evaluating needs, MMS will assist in identifying and defining service thresholds and existing capabilities. Finally, MMS will provide supplemental analysis during feasibility testing to refine facilities standards and cost estimates as needed. MMS will also assist with the development of the financing plan, including an impact fee program. B. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( ) Other: 9/26/0 I J:\COMMDEV\AGREEMENTS\UCSPPFFContractEPS-redline-final.doc Page 18 C. Dates or Time Limits for Delivery of Deliverables: N/ A The dates of deliverables is related to the completion timing of phases of the Urban Core Specific Plan work program, which will be coordinated as part of Task 1. D. Date for completion of all Consultant services: September 15, 2005 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage). (X) Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: Current versions of draft documents comprising the Urban Core Specific Plan Technical studies prepared as part of the Urban Core Specific Plan program Current versions of draft documents comprising the City of Chula Vista General Plan Technical studies prepared as part of the City ofChula Vista General Plan program Data from sewer and drainage studies conducted by the City of Chula Vista 11. Compensation: A. () Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has 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 the Phase is satisfactorily completed, the City shall receive credit against the 9/26/0 I J:ICOMMOEV\AGREEMENTSIUCSPPFFContractEPS-redline_final.doc Page 19 compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. () Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase I) ( ) Fee for Said Phase $ I. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has 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 the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the 9/26/01 J:ICOMMOEVlAGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 20 Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. (X) Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) ( X) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for $131,180 including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) () Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Categorv of Emplovee Principal V.P./Project Manager Associate Analyst Production Staff Name of Consultant J.11usbach, VV.Kieser J. Edison L. Rhine Hourlv Rate $250 $165 $105 $85 $60 12. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X ) None, the compensation includes all costs. Cost or Rate 9/26/01 J:\COMMDEVlAGREEMENTS\UCSPPFFContractEPS-redline_final.doc Page 21 Cost + 15% Cost + 15% $0.32/mile Cost + 15% Cost + 15% Cost + 15% ( ) Reports, not to exceed $ ( ) Copies, not to exceed $ ( ) Travel, not to exceed $ ( ) Printing, not to exceed $ ( ) Postage, not to exceed $ ( ) Delivery, not to exceed $ ( ) Long Distance Telephone Charges, not to exceed $ ( ) Other Actual Identifiable Direct Costs: not to exceed $ N/A Cost +15% 13. Contract Administrators: City: James Hare, Deputy Community Development Director Consultant: James Musbach, Managing Principal, EPS, Inc. 14. Liquidated Damages Rate: N/A ( )$_perday. ( ) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: ( X ) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer ( ) Category No. I. Investments and sources of income. ( ) Category No.2. Interests in real property. ( ) Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. ( ) Category No.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. 9/26/0 I J:ICOMMDEV\AGREEMENTSIUCSPPFFContractEPS-redline-final.doc Page 22 ( ) Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: None 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: McGill, Martin Self, Inc. 18. Bill Processing: A. Consultant's Billing to be submitted for the following period oftime: (X) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: (X) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: To be assigned after agreement is processed 19. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ (X) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention 9/26/01 J:\COMMDEVlAGREEMENTS\UCSPPFFContractEPS-redline-final.doc Page 23 Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: (X) Retention Percentage: 10% ( ) Retention Amount: $ Retention Release Event: (X) Completion of All Consultant Services to the satisfaction of the Deputy Community Development Director. ( ) Other: 9/26/0 I J:\COMMOEV\AGREEMENTS\UCSPPFFConlractEPS-redline-final.doc Page 24 ITEM TITLE: 5UBMlnED BY: REVIEWED BY: BACKGROUND CITY COUNCIL/HOUSING AUTHORITY AGENDA STATEMENT ..., ITEM NO.: -5 MEETING DATE: 04/19/05 PUBLIC HEARING: CITY COUNCIL CONSIDERATION OF THE ISSUANCE OF ADDITIONAL TAX EXEMPT OBLIGATIONS WITH RESPECT TO RANCHO BUENA VISTA APARTMENTS AT EASTLAKE. A) RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS B) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PURSUANT TO SECTION 147(F) OF THE INTERNAL REVENUE CODE OF 1986 APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR RANCHO BUENA VISTA APARTMENTS AT EASTLAKE. COMMUNITY DEVELOPMENT DIRECTOR DIRECTOR OF FINANCE EXECUTIVE DIRECTOR fi/l-;. ~ 4/5TH5 VOTE: YES 0 NO D In 2003, the Housing Authority of the City of Chula Visto issued Multifamily Housing Revenue Bonds in the approximate amount of $11.8 million to assist CIC Eastlake, L.P., a partnership between Pacific Southwest Community Development Corporation and Chelsea Investment Corporation, construct a 150 unit affordable housing development, known as Rancho Buena Vista Apartments, located at 2155 Corte Vista in the Eastlake master planned community (see attached). CIC Eastlake is now requesting that the Housing Authority of the City of Chula Vista consider the issuance of additional tax-exempt bonds in an amount not to exceed $1.715 million. The additional bond allocation will be used to finance cost overruns experienced by the project. As required under the procedures established by Section 147(f) of the Internal Revenue Code of 1986, the City Council is required to hold a public hearing to consider whether the Housing Authority should issue additionol tax exempt bonds for the financing of the project and to opprove the issuance, sale, ond delivery of multi-family housing revenue bonds by the Housing PAGE 2, ITEM NO.: MEETING DATE: 3 04/19/05 Authority at the time a bond allocation is received. The Housing Authority would then also be required to adopt a resolution expressing its preliminary intention to issue bonds. The requested actions are preliminory and do not commit the Authority to issue the bonds. Such preliminary actions are necessary in order to allow the project developer to submit an application to the State bonding authority and to allow the developer to receive reimbursement out of bond proceeds for costs it incurs leading up to the actual sale of bonds. If successful in obtoining 0 bond commitment from Colifornia Debt Limit Allocation Committee, the developer pions to come back to the Authority to request final approval for the issuance of the bonds. The issuance or repayment of the Bonds does not constitute a legal liability or obligation of the Housing Authority. The Authority is octing as a conduit for the bond financing. CIC Eastlake is responsible for repayment of the bonds and all costs of issuonce. The project and the revenues it generates will act as security for payment of the bonds. RECOMMENDATION It is recommended that the Housing Authority and the City Council toke the following actions: 1. That the City Council conduct the required public heoring regarding the Authority's intent to issue additional tax exempt obligations for the proposed Rancho Buena Vista Apartments. 2. Thot the Housing Authority adopt the resolution regarding its intention to issue tox-exempt obligations for the proposed Rancho Buena Vista Apartments within the Eastlake master planned community. 3. That the City Council adopt a resolution approving the issuance, sale and delivery of multifamily revenue bonds of the Housing Authority of the City of Chula Vista for the Rancho Buena Vista Apartments development of the Eostlake master planned community. BOARDS/COMMISSIONS RECOMMENDATION On February 26, 2003, the Housing Advisory Commission voted to recommend approval of $1.5 million in financial assistonce from the City's HOME Program and Redevelopment Low ond Moderate Income Housing Set-aside funds for the development of Rancho Buena Vista Apartments. The Design Review Committee (DRC) held 0 preliminary hearing on the project on March 3, 2003. On April 14, 2003, the DRC approved the plans for development of the project. The City Council initially opproved the issuance of bonds by the Housing Authority for the project on April 4, 2003. Subsequently on October 7, 2003, the Authority outhorized the issuance of PAGE 3, ITEM NO.: MEETING DATE: 3 04/19 /05 $11.7 million in Multifamily Housing Revenue Bonds, concurrent with the City Cauncil's/Redevelopment Agency's final approval of financiol assistance for the development of the project. DISCUSSION THE PROPOSED PROJECT On October 7, 2003, the Housing Authority authorized the original issuance of $11,687,000 in Multi-family Housing Revenue Bonds and the City Council and Redevelopment Agency approved $1.5 million in financiol assistonce for the development of the 150 unit Rancho Buena Vista Apartments ot Eastlake for very low and low-income households. The development is located at 2155 Corte Vista, across the street from the Eastlake Terraces retail center. The development is in its final phase of construction. Four buildings, totaling 120 units, have been completed and fully leased. The last building is nearing completion. CIC has received over 900 applications for the 150 total units to be availoble, with 25 to 30 new inquiries received each week. INCOME AND RENT RESTRICTIONS As a condition of the various financing sources of the project, the Developer has entered into loan and regulatory agreements specifying the terms of the financial assistance and use of the project as an affordable housing development for very low and low-income households for a period of fifty-five (55) years. The affordability of the units, as dictated by all financing sources is illustrated in the chart below: Target Income Maximum FY 2004 Unit Description No. of Units Monthly Group Income Rent 2 Bdrm/2 Ba 12 50% AMI $ 2,588 $ 729 48 60% AMI $ 3,104 $ 883 3 Bdrm/2 Ba 16 50% AMI $ 2,989 $ 838 64 60% AMI $ 3,587 $ 1,017 4 Bdrm/2 Sa 2 50% AMI $ 3,333 $ 928 8 60% AMI $ 4,000 $ 1,127 TOTAL / WTD AVG 150 $ 937 The project is assisting very low and low-income households ot rental rates priced 40 to 50 percent below market rental rates. PROPOSED FINANCING OF PROJECT Financin9 and development of this project is a joint private-public partnership. The developer has already received Tax Exempt Multi-Family Revenue Bonds and Low Income Housing Tax PAGE 4, .IEM NO.: MEETING DATE: 3 04/19/05 Credit financing to support the majority of the costs of constructing the project. As part of the project's approval of October 7, 2003, a loan, to provide gap financing, of $1.5 million from HOME Investment Partnership Program funds and Redevelopment Low Moderate Income Housing funds was also approved. Since the original approval of the project, there hos been an increose in costs. CIC has requested thot the Housing Authority authorize the issuance of on additional $1,715,000 in bonds to cover cost overruns for the project. The original development budget from 2003 was estimated ot $23,615,175. Currently, the total project budget is estimated at $25,790,000, an increose of $2,174,825. Those main factors that have contributed to the increase include the following: . Costs of materials affecting all construction trades; . Construction deloys due to the weather; ond, . Change in the scope of the project bosed upon modifications to the project thot occurred after the issuance of the bonds. City staff hos reviewed and verified these factors and concurs with the Developer's justification for the increase in costs and request for additional bond financing. With an increase in rents realized for 2005, the project can be underwritten for the $1,715,000 in bonds utilizing the same criteria for the previous bond issuance. CIC is proposing the use of other resources to assist with the remaining funding gap. With the issuance of odditional bonds, the praject will be oble to receive an additional $575,000 in tax credit equity. ClC is also proposing the deferral of their $1,050,000 development fee. DEVELOPMENT RISKS In its role os lender to the project, the Authority/City is exposed to risks inherent to real estate development. These risks generally include: 1) predevelopment (project daes not get ta construction), 2) construction (project cannot be completed, cost overruns, contractor problems), and 3) repoyment of obligations. A number of factors mitigate these risks. First, the developer ond its joint venture partners have significant experience and an excellent track record with other affordable housing projects within the City of Chulo Vista and other areas. The project is nearing completion with 120 of the 150 units completed and occupied, with the remaining units occupied by the end of April 2005. While the development costs for the project have increased by approximately $2.175 million, the project is being completed. It is onticipated that the CIC will be able to secure additianol debt ond use other resources to finonce these costs overruns. Additional debt can be secured, using the same underwriting criteria, for the project primarily due to the increase in revenues from rents collected. Should the Housing Authority choose not to authorize the bonds, the project would be PAGE 5, ITEM NO.: MEETING DATE: 3 04/19/05 able to secure conventionol financing. However, this would be at 0 greater cost to the project, with 0 lorger loan ond higher interest rotes. There is no direct legal liability to the Housing Authority or the City in connection with the issuance or repayment of the bonds. The security for repayment of the bonds is the project itself and the revenues it generates. CIC is responsible for the payment of the costs of issuance. While repoyment of the bonds does not constitute a liability or obligation to the Housing Authority, should the Developer or a subsequent owner be unable to perform under the conditions of the Bond Indenture, the Housing Authority's financial rating and/or stature in the marketplace could be negatively impacted. The likelihood of repayment is high given that the project is actually completed, the demonstrated high demond for these units, ond an anticipated low vocancy rate. All units have been leased and CIC continues to receive new interests in the project. It is expected that the project will have a waiting list of several hundred families upon its full lease up. With its reliable revenue base, standard costs of operotion, and the presence of other major financial commitments, such as the tax credit investments, it is anticipated that the project will do well in the short and long-term. FISCAL IMPACT Approval of this resolution only indicates an intention by the Authority to issue tax-exempt obligations ond does not commit the Authority to issue bonds ot this time. All costs related to the issuonce of the bonds will be paid from bond proceeds or profits. The bonds are to be secured by the project and will not constitute a liability or obligotion to the Authority. Some staff costs are associated with monitoring compliance with the Regulatory Agreement. Those costs will be reimbursed from an origination fee for issuance of the bonds and an onnual administrative fee to be paid to the Authority by CIC Eastlake. These fees will be negotioted before the Authority approves the actual issuance of the bond. AnACHMENTS 1. Locotor Map (HINES) J:\COMMDEV\STAFF.REP\200S\A113 Rancho Buena Vista TEFRA 41.19.0S Rev.doc 14/12/056:47 PM] ATTACHMENT 1 RESOLUTION NO. 2005- RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS WHEREAS, in October, 2003, CIC Eastlake, L.P., a California Limited Partnership, a California limited partnership (the "Applicant"), acquired and began constructing a 150 units located on the east side of future Eastlake Parkway, approximately 3,000 feet south of Clubhouse Drive in the Eastlake Greens Planned Community, in the City of Chula Vista (the "Project"), as described in Exhibit A attached hereto and incorporated herein, using proceeds from the Housing Authority of the City ofChula Vista, Multifamily Housing Revenue Bonds (Rancho Vista Apartments) Series 2003A and Housing Authority of the City ofChula Vista Subordinate Multifamily Housing Revenue Bonds (Rancho Vista Apartments) Series 2003B; and WHEREAS, the original scope of the Project has not changed but there have been unanticipated increases in the costs of constructing the Project which necessitate additional financing to complete the Project; and WHEREAS, the Housing Authority of the City of Chula Vista (the "Issuer") desires to assist the Applicant in proving additional subordinate financing to complete the construction of the Project; and WHEREAS, the Issuer intends to assist in the financing of the construction of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations"), which Obligations are expected to be issued pursuant to Chapter 10fPart 2 of Division 24 the Health and Safety Code of the State of Cali fomi a; provided, however, that this Resolution shall not authorize the issuance of the Obligations and provided further that neither the faith and credit nor the taxing power of the Issuer shall be pledged to repay such Obligations if, and when, authorized; and WHEREAS, prior to the issuance of the Obligations the Applicant expects to incur certain expenditures with respect to the Project from its own available monies which expenditures it desires to have reimbursed from a portion of the proceeds of the sale of the Obligations if, and when, issued; and WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code") limits the amount of multifamily housing revenue bonds that may be issued in any calendar year by entities within a state and authorizes the governor or the legislature of a state to provide the method of allocation within the state; and WHEREAS, Chapter 11.8 of Division 1 of Title 2 of the Government Code of the State of California (the "Government Code") governs the allocation of the state ceiling among governmental units in the State of California having the authority to issue multifamily housing revenue bonds; and WHEREAS, Section 8869.85 of the Government Code requires a local agency to file an application with the California Debt Limit Allocation Committee ("CDLAC") prior to the issuance of multifamily housing revenue bonds; and 1 DOCSOC! 1 09903 9v2/24036-0030 WHEREAS, the Issuer desires to apply to CDLAC for an allocation for the Project; NOW, THEREFORE, the BOARD OF COMMISSIONERS of the HOUSING AUTHORITY OF THE CITY OF CHULA VISTA DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS: SECTION I. The Issuer has received an application for the financing of the Project on behalf of the Applicant (the "Application"). The Applicant will incur costs with respect to the Project prior to the issuance of the Obligations. The Issuer hereby states its intention and reasonably expects to reimburse to the Applicant for such costs with proceeds of the Obligations; provided, however, that nothing herein obligates the Issuer to issue the Obligations or provides the Applicant with any legal right to compel the issuance of the Obligations, which decision remains in the final discretion of the Issuer. Exhibit A describes the general character, type, purpose, and function of the Project. SECTION 2. The reasonably expected maximum principal amount of the Obligations is $1,715,000. This Resolution is being adopted no later than sixty (60) days after the date (the "Expenditure Date or Dates") that the Applicant will expend moneys for the portion of Project costs to be reimbursed from proceeds of the Bonds. The expected date of issue of the Bonds is within eighteen (18) months of the later of the Expenditure Date or Dates and the first date the Project is placed in service and, in no event, later than three years after the Expenditure Date or Dates. SECTION 3. Proceeds of the Bonds to be used to reimburse for Project costs are not expected to be used directly or indirectly to pay debt service with respect to any obligation or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner. SECTION 4. This Resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligations are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the portion of the Project costs to be financed with the Obligations. This Board of Commissioners is not aware of any previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures relating to the Project and for which tax-exempt obligations have not been issued. SECTION 5. This Resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation S 1.103-8(a)(5) and Treasury Regulation S 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer's official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer. SECTION 6. The officers and employees of the Authority are hereby authorized and directed to apply to CDLAC for a portion of the private activity bond allocation set aside for the calendar year 2005 for the Project in an aggregate amount not to exceed $1,715,000, to collect from 2 DOCSOCIl 099039v2/2403 6-0030 the Applicant and hold pursuant to CDLAC requirements the required CDLAC deposit for the requested allocation, and to certify to CDLAC that such amount has been placed on deposit in an account in a financial institution. Because the amount of private activity bond allocation is limited, such officers are also authorized to resubmit the application to CDLAC one or more times during the calendar year 2005 in the event the application is denied by CDLAC. SECTION 7. The officers and employees of the Issuer are hereby authorized and directed, jointly and severally, to take any actions and execute and deliver any and all documents which any of them deem necessary or advisable, with the advice of City Attorney, in order to effectuate the purposes of this Resolution, and such actions previously taken by such officers and employees are hereby ratified and confirmed; provided that the terms and conditions under which the Bonds are to be issued and sold must be approved by this Board in the manner provided by law prior to the sale of the Bonds. SECTION 8. All the recitals in this Resolution are true and correct. SECTION 9. This Resolution shall take effect immediately upon its adoption. Presented by Approved as to form by Laurie Madigan Director of Community Development 3 DOCSOC/I099039v2/24036-0030 The foregoing Resolution was passed and adopted by the Board of Commissioners of the Housing Authority of the City of Chula Vista, California, this 19th day of April, 2005, by the following vote, to wit: AYES: NOES: ABSENT: Mayor ATTEST: Secretary I DOCSOC/1 099039v2/24036-0030 STATE OF CALIFORNIA ) ) SS. COUNTY OF SAN DIEGO ) I, Secretary of the Housing Authority of the City. of Chula Vista, California, hereby certify that the above and foregoing Resolution was duly and regularly adopted by the Board of Commissioners at a regular meeting thereof held on the 19th day of April, 2005. IN WITNESS WHEREOF, 1 have hereunto set my hand and seal this _ day of April, 2005. Secretary of the Housing Authority of the City of Chula Vista, California J:\COMMDEV\RESOS\2005\Inducement Reso HA Rancho Vista Apts.DOC 2 DOCSOC/1 09903 9v2/24036-0030 EXHIBIT A DESCRIPTION OF PROJECT A multifamily rental housing project of approximately 150 units known as "Rancho Buena Vista Apartments" and located at 2155 Corte Vista, in the City ofChula Vista, California. A-I DOCSOC/1 099039v2/24036-0030 RESOLUTION NO. 2005- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA PURSUANT TO SECTION 147(1) OF THE INTERNAL REVENUE CODE OF 1986 APPROVING THE ISSUANCE OF BONDS BY THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR RANCHO BUENA VISTA APARTMENTS AT EASTLAKE WHEREAS, in October, 2003, CIC Eastlake, L.P., a California Limited Partnership, a California limited partnership (the "Borrower"), acquired and began constructing a 150 units located on the east side of future Eastlake Parkway, approximately 3,000 feet south of Clubhouse Drive in the Eastlake Greens Planned Community, in the City of Chula Vista (the "Project") using proceeds from the Housing Authority of the City of Chula Vista, Multifamily Housing Revenue Bonds (Rancho Vista Apartments) Series 2003A and Housing Authority of the City of Chula Vista Subordinate Multifamily Housing Revenue Bonds (Rancho Vista Apartments) Series 2003B (together, the "2003 Bonds"); and WHEREAS, the Housing Authority of the City of Chula Vista (the "Authority") proposes to issue up to $1,715,000 aggregate principal amount of multifamily housing revenue bonds (the "2005 Bonds") to provide additional subordinate financing for the construction of the Project described in the form of notice of public hearing attached as Exhibit A hereto; and WHEREAS, in order for interest on the 2005 Bonds to be tax-exempt, Section 147(1) of the Internal Revenue Code of 1986 requires that the 2005 Bonds be approved by the City Council as the applicable elected representative after a public hearing following reasonable public notice; and WHEREAS, notice of a public hearing with respect to the proposed issuance of the Bonds was published in a newspaper of general circulation in the City on April I, 2005; and WHEREAS, the hearing was held on April 19, 2005, and an opportunity was provided for interested persons to express their views on the issuance of the 2005 Bonds and on the nature and location of the Project; NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that this City Council, as the applicable elected representatives under Section 147(1) of the Code, approves the issuance of the 2005 Bonds by the Authority. Presented by Approved as to form by Laurie Madigan Director of Community Development ~kL!e)~ f-W/ Ann ore City Attorney 1 DOCSOC/ I 099043 v 3/24036-0030 PASSED AND ADOPTED this 19th day of April, 2005, by the following vote: AYES: NOES: ABSTENTIONS: ABSENT: Mayor City of Chula Vista I hereby certify that the foregoing resolution was duly introduced, passed and adopted at the time and place and by the vote as noted above. Clerk of the City Council City of Chula Vista J:\COMMDEV\RESOS\2005\TEFRA Resolution Rancho Vista Apartments.DOC 2 DOCSOC/I 099043v 3/24036-0030 EXHIBIT A PUBLIC NOTICE CITY OF CHULA VISTA NOTICE OF PUBLIC HEARING REGARDING ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS NOTICE IS HEREBY GIVEN that, at its regular meeting to be held at 6:00 p.m. on Tuesday, April 19, 2005, at the City Council Chambers of the City ofChula Vista located at 276 Fourth Avenue, Chula Vista, California 91910, the City Council of the City of Chula Vista will conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, at which it will hear and consider information concerning the issuance by The Housing Authority of the City of Chula Vista (the "Authority") of bonds (the "Bonds") to provide additional subordinate financing to a multifamily rental housing project of approximately 150 units known as "Rancho Buena Vista Apartments" located at 2155 Corte Vista, in the City of Chula Vista, California (the "Project"). The Project is owned and operated by CIC Eastlake, L.P., a California Limited Partnership. The Authority proposes to issue the Bonds in an aggregate principal amount not to exceed $1,715,000. In October, 2003, the Authority issued $11,686,000 of bonds in two series to finance the Project. The original scope of the Project has not changed, but there have been unanticipated increases in the costs of constructing the Project which necessitate additional financing to complete the Project. The Authority proposes to issue the Bonds to provide this additional financing. By law, at least 20 percent of the rental units in the Project are required to be available for occupancy by persons or families whose income does not exceed 50 percent of the median income for the San Diego, California Primary Metropolitan Statistical Area, or, alternatively, at least 40 percent of the rental units are required to be available for occupancy by persons or families whose income does not exceed 60 percent of the median income for the Area, in each case at affordable rents established by applicable State law. It is expected that the Authority will require that all of the units be made available to persons of low or moderate income. ALL PERSONS HAVING ANY INFORMATION RELEVANT TO THE PROPOSED ISSUANCE OF THE BONDS DESCRIBED ABOVE ARE HEREBY INVITED TO APPEAR AT THE TIME AND PLACE MENTIONED ABOVE TO PRESENT SUCH INFORMATION TO THE CITY COUNCIL. If you wish to challenge the City's action on the matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk's Office at or prior to the public hearing. For further information, contact Leilani Hines, Community Development Specialist, of the City ofChula Vista, at (619) 585-5722. Susan Bigelow City Clerk of the City of Chula Vista DATED: April I, 2005 DOCSOCII 099043 v3/24036-0030